Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'HAWAIIAN ELECTRIC INDUSTRIES INC | ' |
Entity Central Index Key | '0000354707 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 102,562,464 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'HAWAIIAN ELECTRIC CO INC | ' |
Entity Central Index Key | '0000046207 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 15,429,105 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues | ' | ' | ' | ' |
Total revenues | $867,096 | $829,168 | $2,449,502 | $2,405,967 |
Expenses | ' | ' | ' | ' |
Total expenses | 775,994 | 741,130 | 2,187,819 | 2,168,897 |
Operating income (loss) | ' | ' | ' | ' |
Total operating income | 91,102 | 88,038 | 261,683 | 237,070 |
Interest expense, net—other than on deposit liabilities and other bank borrowings | -19,170 | -19,043 | -58,648 | -56,216 |
Allowance for borrowed funds used during construction | 740 | 498 | 1,877 | 1,626 |
Allowance for equity funds used during construction | 1,937 | 1,255 | 4,933 | 4,030 |
Income before income taxes | 74,609 | 70,748 | 209,845 | 186,510 |
Income taxes | 26,323 | 22,041 | 73,265 | 62,590 |
Net income | 48,286 | 48,707 | 136,580 | 123,920 |
Preferred stock dividends of subsidiaries | 471 | 471 | 1,417 | 1,417 |
Net income for common stock | 47,815 | 48,236 | 135,163 | 122,503 |
Basic earnings per common share (in dollars per share) | $0.47 | $0.49 | $1.33 | $1.24 |
Diluted earnings per common share (in dollars per share) | $0.46 | $0.48 | $1.32 | $1.23 |
Dividends per common share (in dollars per share) | $0.31 | $0.31 | $0.93 | $0.93 |
Weighted-average number of common shares outstanding (in shares) | 102,416 | 99,204 | 101,768 | 98,670 |
Net effect of potentially dilutive shares (in shares) | 610 | 614 | 710 | 620 |
Adjusted weighted-average shares (in shares) | 103,026 | 99,818 | 102,478 | 99,290 |
Electric utility | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Total revenues | 803,565 | 764,054 | 2,262,056 | 2,210,020 |
Expenses | ' | ' | ' | ' |
Total expenses | 727,409 | 694,201 | 2,045,166 | 2,030,071 |
Operating income (loss) | ' | ' | ' | ' |
Total operating income | 76,156 | 69,853 | 216,890 | 179,949 |
Income before income taxes | 62,419 | 56,573 | 174,711 | 141,645 |
Income taxes | 23,042 | 18,258 | 64,686 | 49,210 |
Net income | 39,377 | 38,315 | 110,025 | 92,435 |
Preferred stock dividends of subsidiaries | 498 | 498 | 1,496 | 1,496 |
Net income for common stock | 38,879 | 37,817 | 108,529 | 90,939 |
Bank | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Total revenues | 63,536 | 65,058 | 187,771 | 195,841 |
Expenses | ' | ' | ' | ' |
Total expenses | 43,964 | 42,223 | 129,528 | 126,550 |
Operating income (loss) | ' | ' | ' | ' |
Total operating income | 19,572 | 22,835 | 58,243 | 69,291 |
Income before income taxes | 19,572 | 22,808 | 58,244 | 69,265 |
Income taxes | 6,312 | 7,532 | 18,769 | 23,915 |
Net income | 13,260 | 15,276 | 39,475 | 45,350 |
Net income for common stock | 13,260 | 15,276 | 39,475 | 45,350 |
Other | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Total revenues | -5 | 56 | -325 | 106 |
Expenses | ' | ' | ' | ' |
Total expenses | 4,621 | 4,706 | 13,125 | 12,276 |
Operating income (loss) | ' | ' | ' | ' |
Total operating income | -4,626 | -4,650 | -13,450 | -12,170 |
Income before income taxes | -7,382 | -8,633 | -23,110 | -24,400 |
Income taxes | -3,031 | -3,749 | -10,190 | -10,535 |
Net income | -4,351 | -4,884 | -12,920 | -13,865 |
Preferred stock dividends of subsidiaries | -27 | -27 | -79 | -79 |
Net income for common stock | ($4,324) | ($4,857) | ($12,841) | ($13,786) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income for common stock | $47,815 | $48,236 | $135,163 | $122,503 |
Net unrealized gains (losses) on securities: | ' | ' | ' | ' |
Net unrealized gains (losses) on securities arising during the period, net of (taxes) tax benefits of $1,094, $1,049, ($2,249) and $7,081 for the respective periods | -1,657 | -1,589 | 3,406 | -10,724 |
Less: reclassification adjustment for net realized gains included in net income, net of taxes of nil, nil, $1,132 and $488 for the respective periods | 0 | 0 | -1,715 | -738 |
Derivatives qualified as cash flow hedges: | ' | ' | ' | ' |
Less: reclassification adjustment to net income, net of tax benefits of $37, $37, $112 and $112 for the respective periods | 59 | 59 | 177 | 177 |
Retirement benefit plans: | ' | ' | ' | ' |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $1,900, $3,697, $5,438 and $11,173 for the respective periods | 2,829 | 5,789 | 8,515 | 17,490 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $1,619, $3,284, $4,858 and $9,852 for the respective periods | -2,542 | -5,156 | -7,627 | -15,468 |
Other comprehensive income (loss), net of taxes | -1,311 | -897 | 2,756 | -9,263 |
Comprehensive income | $46,504 | $47,339 | $137,919 | $113,240 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net unrealized gains (losses) on securities arising during the period, taxes | $1,094 | $1,049 | ($2,249) | $7,081 |
Less: reclassification adjustment for net realized gains included in net income, taxes | 0 | 0 | 1,132 | 488 |
Less: reclassification adjustment to net income, tax benefits | -37 | -37 | -112 | -112 |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, tax benefits | -1,900 | -3,697 | -5,438 | -11,173 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, taxes | $1,619 | $3,284 | $4,858 | $9,852 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $192,555 | $220,036 |
Accounts receivable and unbilled revenues, net | 365,728 | 346,785 |
Available-for-sale investment and mortgage-related securities | 531,603 | 529,007 |
Investment in stock of Federal Home Loan Bank of Seattle | 75,063 | 92,546 |
Loans receivable held for investment, net | 4,291,960 | 4,110,113 |
Loans held for sale, at lower of cost or fair value | 2,328 | 5,302 |
Property, plant and equipment, net of accumulated depreciation of $2,224,728 and $2,192,422 at the respective dates | 4,048,106 | 3,865,514 |
Regulatory assets | 575,712 | 575,924 |
Other | 505,226 | 512,627 |
Goodwill | 82,190 | 82,190 |
Total assets | 10,670,471 | 10,340,044 |
Liabilities | ' | ' |
Accounts payable | 177,495 | 212,331 |
Interest and dividends payable | 26,051 | 26,716 |
Deposit liabilities | 4,533,797 | 4,372,477 |
Short-term borrowings—other than bank | 150,576 | 105,482 |
Other bank borrowings | 263,204 | 244,514 |
Long-term debt, net—other than bank | 1,517,946 | 1,492,945 |
Deferred income taxes | 585,432 | 529,260 |
Regulatory liabilities | 357,090 | 349,299 |
Contributions in aid of construction | 448,811 | 432,894 |
Defined benefit pension and other postretirement benefit plans liability | 274,909 | 288,539 |
Other | 499,459 | 524,224 |
Total liabilities | 8,834,770 | 8,578,681 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies (Notes 3 and 4) | ' | ' |
Shareholders' equity | ' | ' |
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 0 | 0 |
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 101,560,176 shares and 101,259,800 shares at the respective dates | 1,519,256 | 1,488,126 |
Retained earnings | 296,146 | 255,694 |
Accumulated other comprehensive loss, net of taxes | -13,994 | -16,750 |
Common stock equity | 1,801,408 | 1,727,070 |
Total liabilities and shareholders’ equity | $10,670,471 | $10,340,044 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Property, plant and equipment, accumulated depreciation (in dollars) | $2,241,677 | $2,192,422 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, issued shares | 0 | 0 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, issued shares | 102,562,464 | 101,259,800 |
Common stock, outstanding shares | 102,562,464 | 101,259,800 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common stock | Retained Earnings | Accumulated other comprehensive income (loss) |
In Thousands, except Share data, unless otherwise specified | ||||
Balance at Dec. 31, 2012 | $1,593,865 | $1,403,484 | $216,804 | ($26,423) |
Balance (in shares) at Dec. 31, 2012 | ' | 97,928,000 | ' | ' |
Increase (decrease) in stockholders' equity | ' | ' | ' | ' |
Net income for common stock | 122,503 | ' | 122,503 | ' |
Other comprehensive income (loss), net of taxes | -9,263 | ' | ' | -9,263 |
Issuance of common stock, net | 40,099 | 40,099 | ' | ' |
Issuance of common stock, net (in shares) | ' | 1,614,000 | ' | ' |
Common stock dividends ($0.93 per share) | -91,739 | ' | -91,739 | ' |
Balance at Sep. 30, 2013 | 1,655,465 | 1,443,583 | 247,568 | -35,686 |
Balance (in shares) at Sep. 30, 2013 | ' | 99,542,000 | ' | ' |
Balance at Dec. 31, 2013 | 1,727,070 | 1,488,126 | 255,694 | -16,750 |
Balance (in shares) at Dec. 31, 2013 | 101,259,800 | 101,260,000 | ' | ' |
Increase (decrease) in stockholders' equity | ' | ' | ' | ' |
Net income for common stock | 135,163 | ' | 135,163 | ' |
Other comprehensive income (loss), net of taxes | 2,756 | ' | ' | 2,756 |
Issuance of common stock, net | 31,130 | 31,130 | ' | ' |
Issuance of common stock, net (in shares) | ' | 1,302,000 | ' | ' |
Common stock dividends ($0.93 per share) | -94,711 | ' | -94,711 | ' |
Balance at Sep. 30, 2014 | $1,801,408 | $1,519,256 | $296,146 | ($13,994) |
Balance (in shares) at Sep. 30, 2014 | 102,562,464 | 102,562,000 | ' | ' |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' | ' |
Common stock dividends (in dollars per share) | $0.31 | $0.31 | $0.93 | $0.93 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $136,580 | $123,920 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation of property, plant and equipment | 129,574 | 120,355 |
Other amortization | 5,454 | 2,352 |
Provision for loan losses | 3,566 | 953 |
Loans receivable originated and purchased, held for sale | -102,523 | -199,772 |
Proceeds from sale of loans receivable, held for sale | 106,918 | 223,221 |
Gain on sale of credit card portfolio | 0 | -2,251 |
Increase in deferred income taxes | 48,900 | 60,580 |
Excess tax benefits from share-based payment arrangements | -271 | -469 |
Allowance for equity funds used during construction | -4,933 | -4,030 |
Change in cash overdraft | -1,038 | 0 |
Changes in assets and liabilities | ' | ' |
Decrease (increase) in accounts receivable and unbilled revenues, net | -18,943 | 12,740 |
Decrease in fuel oil stock | 15,784 | 24,332 |
Increase in regulatory assets | -17,531 | -53,314 |
Decrease in accounts, interest and dividends payable | -75,812 | -21,708 |
Change in prepaid and accrued income taxes and utility revenue taxes | -2,044 | -19,212 |
Decrease in defined benefit pension and other postretirement benefit plans liability | -2,594 | -509 |
Change in other assets and liabilities | -47,677 | -20,462 |
Net cash provided by operating activities | 173,410 | 246,726 |
Cash flows from investing activities | ' | ' |
Available-for-sale investment and mortgage-related securities purchased | -130,578 | -39,721 |
Principal repayments on available-for-sale investment and mortgage-related securities | 52,678 | 84,487 |
Proceeds from sale of available-for-sale investment securities | 79,564 | 71,367 |
Redemption of stock from Federal Home Loan Bank of Seattle | 17,482 | 2,609 |
Net increase in loans held for investment | -184,766 | -293,996 |
Proceeds from sale of real estate acquired in settlement of loans | 2,930 | 8,777 |
Capital expenditures | -236,003 | -247,392 |
Contributions in aid of construction | 21,740 | 23,633 |
Proceeds from sale of credit card portfolio | 0 | 26,386 |
Other | -39 | 426 |
Net cash used in investing activities | -376,992 | -363,424 |
Cash flows from financing activities | ' | ' |
Net increase in deposit liabilities | 161,320 | 80,926 |
Net increase in short-term borrowings with original maturities of three months or less | 45,094 | 47,648 |
Net decrease in retail repurchase agreements | -6,306 | -6,314 |
Proceeds from other bank borrowings | 90,000 | 120,000 |
Repayments of other bank borrowings | -65,000 | -70,000 |
Proceeds from issuance of long-term debt | 125,000 | 50,000 |
Repayment of long-term debt | -100,000 | -50,000 |
Excess tax benefits from share-based payment arrangements | 271 | 469 |
Net proceeds from issuance of common stock | 26,910 | 18,383 |
Common stock dividends | -94,674 | -73,584 |
Preferred stock dividends of subsidiaries | -1,417 | -1,417 |
Other | -5,097 | -4,033 |
Net cash provided by financing activities | 176,101 | 112,078 |
Net decrease in cash and cash equivalents | -27,481 | -4,620 |
Cash and cash equivalents, beginning of period | 220,036 | 219,662 |
Cash and cash equivalents, end of period | $192,555 | $215,042 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income - HECO (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Total revenues | $867,096 | $829,168 | $2,449,502 | $2,405,967 |
Operating expenses | ' | ' | ' | ' |
Purchased power | 193,000 | 195,000 | 546,000 | 527,000 |
Total expenses | 775,994 | 741,130 | 2,187,819 | 2,168,897 |
Operating income | 91,102 | 88,038 | 261,683 | 237,070 |
Allowance for equity funds used during construction | 1,937 | 1,255 | 4,933 | 4,030 |
Allowance for borrowed funds used during construction | 740 | 498 | 1,877 | 1,626 |
Income taxes | 26,323 | 22,041 | 73,265 | 62,590 |
Net income | 48,286 | 48,707 | 136,580 | 123,920 |
Preferred stock dividends of subsidiaries | 471 | 471 | 1,417 | 1,417 |
Net income for common stock | 47,815 | 48,236 | 135,163 | 122,503 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' | ' | ' |
Total revenues | 803,565 | 764,054 | 2,262,056 | 2,210,020 |
Operating expenses | ' | ' | ' | ' |
Fuel oil | 309,432 | 283,360 | 865,989 | 877,738 |
Purchased power | 192,882 | 194,861 | 546,121 | 526,669 |
Other operation and maintenance | 108,313 | 104,513 | 295,483 | 300,723 |
Depreciation | 41,594 | 38,995 | 124,790 | 115,865 |
Taxes, other than income taxes | 75,188 | 72,472 | 212,783 | 209,076 |
Total expenses | 727,409 | 694,201 | 2,045,166 | 2,030,071 |
Operating income | 76,156 | 69,853 | 216,890 | 179,949 |
Allowance for equity funds used during construction | 1,937 | 1,255 | 4,933 | 4,030 |
Interest expense and other charges, net | -16,414 | -15,033 | -48,989 | -43,960 |
Allowance for borrowed funds used during construction | 740 | 498 | 1,877 | 1,626 |
Income before income taxes | 62,419 | 56,573 | 174,711 | 141,645 |
Income taxes | 23,042 | 18,258 | 64,686 | 49,210 |
Net income | 39,377 | 38,315 | 110,025 | 92,435 |
Preferred stock dividends of subsidiaries | 228 | 228 | 686 | 686 |
Net income attributable to Hawaiian Electric | 39,149 | 38,087 | 109,339 | 91,749 |
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 810 | 810 |
Net income for common stock | $38,879 | $37,817 | $108,529 | $90,939 |
Consolidated_Statements_of_Com2
Consolidated Statements of Comprehensive Income - HECO (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net income for common stock | $47,815 | $48,236 | $135,163 | $122,503 |
Retirement benefit plans: | ' | ' | ' | ' |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $1,626, $3,295, $4,878 and $9,885 for the respective periods | 2,829 | 5,789 | 8,515 | 17,490 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $1,619, $3,284, $4,858 and $9,852 for the respective periods | -2,542 | -5,156 | -7,627 | -15,468 |
Other comprehensive income (loss), net of taxes | -1,311 | -897 | 2,756 | -9,263 |
Comprehensive income | 46,504 | 47,339 | 137,919 | 113,240 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' | ' | ' |
Net income for common stock | 38,879 | 37,817 | 108,529 | 90,939 |
Retirement benefit plans: | ' | ' | ' | ' |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $1,626, $3,295, $4,878 and $9,885 for the respective periods | 2,552 | 5,173 | 7,659 | 15,520 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $1,619, $3,284, $4,858 and $9,852 for the respective periods | -2,542 | -5,156 | -7,627 | -15,468 |
Other comprehensive income (loss), net of taxes | 10 | 17 | 32 | 52 |
Comprehensive income | $38,889 | $37,834 | $108,561 | $90,991 |
Consolidated_Statements_of_Com3
Consolidated Statements of Comprehensive Income (Parenthetical) - HECO (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | ($1,900) | ($3,697) | ($5,438) | ($11,173) |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, taxes | 1,619 | 3,284 | 4,858 | 9,852 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' | ' | ' |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | -1,626 | -3,295 | -4,878 | -9,885 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, taxes | $1,619 | $3,284 | $4,858 | $9,852 |
Consolidated_Balance_Sheets_HE
Consolidated Balance Sheets - HECO (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Utility plant, at cost | ' | ' |
Total property, plant and equipment, net | $4,048,106 | $3,865,514 |
Other long-term assets | ' | ' |
Total assets | 10,670,471 | 10,340,044 |
Capitalization | ' | ' |
Retained earnings | 296,146 | 255,694 |
Common stock equity | 1,801,408 | 1,727,070 |
Cumulative preferred stock — not subject to mandatory redemption | 0 | 0 |
Commitments and contingencies (Note 3) | ' | ' |
Current liabilities | ' | ' |
Interest and preferred dividends payable | 26,051 | 26,716 |
Deferred credits and other liabilities | ' | ' |
Deferred income taxes | 585,432 | 529,260 |
Contributions in aid of construction | 448,811 | 432,894 |
Total liabilities and shareholders’ equity | 10,670,471 | 10,340,044 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' |
Utility plant, at cost | ' | ' |
Land | 52,344 | 51,883 |
Plant and equipment | 5,902,397 | 5,701,875 |
Less accumulated depreciation | -2,167,545 | -2,111,229 |
Construction in progress | 179,190 | 143,233 |
Utility property, plant and equipment, net | 3,966,386 | 3,785,762 |
Nonutility property, plant and equipment, less accumulated depreciation of $1,229 and $1,223 at respective dates | 6,561 | 6,567 |
Total property, plant and equipment, net | 3,972,947 | 3,792,329 |
Current assets | ' | ' |
Cash and cash equivalents | 18,387 | 62,825 |
Customer accounts receivable, net | 189,733 | 175,448 |
Accrued unbilled revenues, net | 143,153 | 144,124 |
Other accounts receivable, net | 19,508 | 14,062 |
Fuel oil stock, at average cost | 118,303 | 134,087 |
Materials and supplies, at average cost | 60,639 | 59,044 |
Prepayments and other | 50,270 | 52,857 |
Regulatory assets | 54,700 | 69,738 |
Total current assets | 654,693 | 712,185 |
Other long-term assets | ' | ' |
Regulatory assets | 521,012 | 506,186 |
Unamortized debt expense | 8,619 | 9,003 |
Other | 67,891 | 67,426 |
Total other long-term assets | 597,522 | 582,615 |
Total assets | 5,225,162 | 5,087,129 |
Capitalization | ' | ' |
Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 15,429,105 shares) | 102,880 | 102,880 |
Premium on capital stock | 541,447 | 541,452 |
Retained earnings | 990,784 | 948,624 |
Accumulated other comprehensive income, net of income taxes-retirement benefit plans | 640 | 608 |
Common stock equity | 1,635,751 | 1,593,564 |
Cumulative preferred stock — not subject to mandatory redemption | 34,293 | 34,293 |
Long-term debt, net | 1,206,546 | 1,206,545 |
Total capitalization | 2,876,590 | 2,834,402 |
Commitments and contingencies (Note 3) | ' | ' |
Current liabilities | ' | ' |
Current portion of long-term debt | 11,400 | 11,400 |
Short-term borrowings from non-affiliates | 84,987 | 0 |
Accounts payable | 151,978 | 189,559 |
Interest and preferred dividends payable | 24,401 | 21,652 |
Taxes accrued | 236,481 | 249,445 |
Regulatory liabilities | 528 | 1,916 |
Other | 62,400 | 63,881 |
Total current liabilities | 572,175 | 537,853 |
Deferred credits and other liabilities | ' | ' |
Deferred income taxes | 565,499 | 507,161 |
Regulatory liabilities | 356,562 | 347,383 |
Unamortized tax credits | 79,268 | 73,539 |
Defined benefit pension and other postretirement benefit plans liability | 248,338 | 262,162 |
Other | 77,919 | 91,735 |
Total deferred credits and other liabilities | 1,327,586 | 1,281,980 |
Contributions in aid of construction | 448,811 | 432,894 |
Total liabilities and shareholders’ equity | $5,225,162 | $5,087,129 |
Consolidated_Balance_Sheets_Pa1
Consolidated Balance Sheets (Parenthetical) - HECO (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, outstanding shares | 102,562,464 | 101,259,800 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' |
Nonutility property, plant and equipment, accumulated depreciation | 1,229 | 1,223 |
Common stock, par value (in dollars per share) | 6.67 | 6.67 |
Common stock, authorized shares | 50,000,000 | 50,000,000 |
Common stock, outstanding shares | 15,429,105 | 15,429,105 |
Consolidated_Statements_of_Cha2
Consolidated Statements of Changes in Common Stock Equity - HECO (USD $) | Total | Hawaiian Electric Company, Inc. and Subsidiaries | Common stock | Premium on capital stock | Retained Earnings | Accumulated other comprehensive income (loss) |
In Thousands, except Share data, unless otherwise specified | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Balance at Dec. 31, 2012 | $1,593,865 | $1,472,136 | $97,788 | $468,045 | $907,273 | ($970) |
Balance (in shares) at Dec. 31, 2012 | ' | ' | 14,665,000 | ' | ' | ' |
Increase (decrease) in stockholders' equity | ' | ' | ' | ' | ' | ' |
Net income for common stock | 122,503 | 90,939 | ' | ' | 90,939 | ' |
Other comprehensive income (loss), net of taxes | -9,263 | 52 | ' | ' | ' | 52 |
Common stock dividends | -91,739 | -61,183 | ' | ' | -61,183 | ' |
Balance at Sep. 30, 2013 | 1,655,465 | 1,501,944 | 97,788 | 468,045 | 937,029 | -918 |
Balance (in shares) at Sep. 30, 2013 | ' | ' | 14,665,000 | ' | ' | ' |
Balance at Jun. 30, 2013 | ' | ' | ' | ' | ' | ' |
Increase (decrease) in stockholders' equity | ' | ' | ' | ' | ' | ' |
Net income for common stock | 48,236 | 37,817 | ' | ' | ' | ' |
Other comprehensive income (loss), net of taxes | -897 | 17 | ' | ' | ' | ' |
Balance at Sep. 30, 2013 | 1,655,465 | 1,501,944 | 97,788 | 468,045 | ' | ' |
Balance (in shares) at Sep. 30, 2013 | ' | ' | 14,665,000 | ' | ' | ' |
Balance at Dec. 31, 2013 | 1,727,070 | 1,593,564 | 102,880 | 541,452 | 948,624 | 608 |
Balance (in shares) at Dec. 31, 2013 | 101,259,800 | ' | 15,429,000 | ' | ' | ' |
Increase (decrease) in stockholders' equity | ' | ' | ' | ' | ' | ' |
Net income for common stock | 135,163 | 108,529 | ' | ' | 108,529 | ' |
Other comprehensive income (loss), net of taxes | 2,756 | 32 | ' | ' | ' | 32 |
Common stock dividends | -94,711 | -66,369 | ' | ' | -66,369 | ' |
Common stock issuance expenses | ' | -5 | ' | -5 | ' | ' |
Balance at Sep. 30, 2014 | 1,801,408 | 1,635,751 | 102,880 | 541,447 | 990,784 | 640 |
Balance (in shares) at Sep. 30, 2014 | 102,562,464 | ' | 15,429,000 | ' | ' | ' |
Balance at Jun. 30, 2014 | ' | ' | ' | ' | ' | ' |
Increase (decrease) in stockholders' equity | ' | ' | ' | ' | ' | ' |
Net income for common stock | 47,815 | 38,879 | ' | ' | ' | ' |
Other comprehensive income (loss), net of taxes | -1,311 | 10 | ' | ' | ' | ' |
Balance at Sep. 30, 2014 | $1,801,408 | $1,635,751 | $102,880 | ' | ' | ' |
Balance (in shares) at Sep. 30, 2014 | 102,562,464 | ' | 15,429,000 | ' | ' | ' |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows - HECO (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $136,580 | $123,920 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation of property, plant and equipment | 129,574 | 120,355 |
Other amortization | 5,454 | 2,352 |
Increase in deferred income taxes | 48,900 | 60,580 |
Allowance for equity funds used during construction | -4,933 | -4,030 |
Change in cash overdraft | -1,038 | 0 |
Changes in assets and liabilities | ' | ' |
Decrease in fuel oil stock | 15,784 | 24,332 |
Increase in regulatory assets | -17,531 | -53,314 |
Change in prepaid and accrued income taxes and utility revenue taxes | -2,044 | -19,212 |
Decrease in defined benefit pension and other postretirement benefit plans liability | -2,594 | -509 |
Change in other assets and liabilities | -47,677 | -20,462 |
Net cash provided by operating activities | 173,410 | 246,726 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -236,003 | -247,392 |
Contributions in aid of construction | 21,740 | 23,633 |
Other | -39 | 426 |
Net cash used in investing activities | -376,992 | -363,424 |
Cash flows from financing activities | ' | ' |
Common stock dividends | -94,674 | -73,584 |
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 45,094 | 47,648 |
Other | -5,097 | -4,033 |
Net cash provided by financing activities | 176,101 | 112,078 |
Net decrease in cash and cash equivalents | -27,481 | -4,620 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' |
Cash flows from operating activities | ' | ' |
Net income | 110,025 | 92,435 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation of property, plant and equipment | 124,790 | 115,865 |
Other amortization | 4,662 | 2,470 |
Increase in deferred income taxes | 67,392 | 48,014 |
Change in tax credits, net | 5,816 | 4,510 |
Allowance for equity funds used during construction | -4,933 | -4,030 |
Change in cash overdraft | -1,038 | 0 |
Changes in assets and liabilities | ' | ' |
Decrease (increase) in accounts receivable | -19,731 | 42,077 |
Decrease (increase) in accrued unbilled revenues | 971 | -5,603 |
Decrease in fuel oil stock | 15,784 | 24,332 |
Increase in materials and supplies | -1,595 | -8,349 |
Increase in regulatory assets | -17,531 | -53,314 |
Decrease in accounts payable | -77,893 | -22,974 |
Change in prepaid and accrued income taxes and utility revenue taxes | -18,075 | -15,416 |
Decrease in defined benefit pension and other postretirement benefit plans liability | -748 | 1,488 |
Change in other assets and liabilities | -41,629 | -10,195 |
Net cash provided by operating activities | 146,267 | 211,310 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -229,105 | -237,869 |
Contributions in aid of construction | 21,740 | 23,633 |
Other | 0 | 427 |
Net cash used in investing activities | -207,365 | -213,809 |
Cash flows from financing activities | ' | ' |
Common stock dividends | -66,369 | -61,183 |
Preferred stock dividends of Hawaiian Electric and subsidiaries | -1,496 | -1,496 |
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 84,987 | 73,246 |
Other | -462 | -42 |
Net cash provided by financing activities | 16,660 | 10,525 |
Net decrease in cash and cash equivalents | -44,438 | 8,026 |
Cash and cash equivalents, beginning of period | 62,825 | 17,159 |
Cash and cash equivalents, end of period | $18,387 | $25,185 |
Basis_of_presentation
Basis of presentation | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Basis of presentation | ' | ||||||||||||
Basis of presentation | |||||||||||||
The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information, the instructions to SEC Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. The accompanying unaudited consolidated financial statements and the following notes should be read in conjunction with the audited consolidated financial statements and the notes thereto in HEI’s and Hawaiian Electric's Form 10-K for the year ended December 31, 2013. | |||||||||||||
In the opinion of HEI’s and Hawaiian Electric's management, the accompanying unaudited consolidated financial statements contain all material adjustments required by GAAP to fairly state the Company’s and Hawaiian Electric's financial position as of September 30, 2014 and December 31, 2013, the results of its operations for the three and nine months ended September 30, 2014 and 2013, and its cash flows for the nine months ended September 30, 2014 and 2013. All such adjustments are of a normal recurring nature, unless otherwise disclosed in this Form 10-Q or other referenced material. Results of operations for interim periods are not necessarily indicative of results for the full year. | |||||||||||||
Reclassifications and revisions. In the fourth quarter of 2013, Hawaiian Electric changed its consolidated statements of income for 2013 and prior comparative periods from a utility presentation to a commercial company presentation, under which all operating revenues and expenses (including non-regulated revenues and expenses) are included in the determination of operating income. Additionally, income tax expense, which was previously included partially in operating expenses and partially in other income (deductions), is now entirely presented directly above net income in income taxes and includes income taxes related to non-regulated revenues and expenses. | |||||||||||||
In making the change to a commercial company presentation, the Company discovered that interest on the Utilities’ uncollected revenue balancing accounts and the income tax gross-up adjustment for allowance for funds used during construction (AFUDC)-equity were incorrectly included in HEI consolidated revenues and is revising its previously filed quarterly Consolidated Statements of Income for 2013 to move the amounts to “Interest expense, net-other than on deposit liabilities and other bank borrowings” and income taxes, respectively. The Company and the Utilities have also revised their property, plant and equipment as of December 31, 2013 to correct for an error that excluded Hawaiian Electric consolidated non-utility property plant and equipment amounts. | |||||||||||||
The table below illustrates the effects of the revisions on the previously filed financial statements: | |||||||||||||
As previously | As | ||||||||||||
(in thousands) | filed | revised | Difference | ||||||||||
HEI consolidated | |||||||||||||
Consolidated Statements of Income | |||||||||||||
Three months ended September 30, 2013 | |||||||||||||
Revenues | $ | 831,229 | $ | 829,168 | $ | (2,061 | ) | ||||||
Operating income | 90,099 | 88,038 | (2,061 | ) | |||||||||
Interest expense, net—other than on deposit liabilities and other bank borrowings | (20,304 | ) | (19,043 | ) | 1,261 | ||||||||
Income before income taxes | 71,548 | 70,748 | (800 | ) | |||||||||
Income taxes | 22,841 | 22,041 | (800 | ) | |||||||||
Nine months ended September 30, 2013 | |||||||||||||
Revenues | 2,412,023 | 2,405,967 | (6,056 | ) | |||||||||
Operating income | 243,126 | 237,070 | (6,056 | ) | |||||||||
Interest expense, net—other than on deposit liabilities and other bank borrowings | (59,705 | ) | (56,216 | ) | 3,489 | ||||||||
Income before income taxes | 189,077 | 186,510 | (2,567 | ) | |||||||||
Income taxes | 65,157 | 62,590 | (2,567 | ) | |||||||||
Consolidated Balance Sheets | |||||||||||||
31-Dec-13 | |||||||||||||
Property, plant and equipment, net of accumulated depreciation | 3,858,947 | 3,865,514 | 6,567 | ||||||||||
Accumulated depreciation | (2,191,199 | ) | (2,192,422 | ) | (1,223 | ) | |||||||
Other assets | 519,194 | 512,627 | (6,567 | ) | |||||||||
Hawaiian Electric consolidated | |||||||||||||
Consolidated Balance Sheets | |||||||||||||
31-Dec-13 | |||||||||||||
Other assets | 73,993 | 67,426 | (6,567 | ) | |||||||||
The reclassifications and revisions made to prior periods’ financial statements for the three and nine months ended September 30, 2013 and as of December 31, 2013 to conform to the presentation for the three and nine months ended, and as of, September 30, 2014 did not affect previously reported net income and cash flows and were not considered material to previously filed financial statements. | |||||||||||||
Out-of period income tax benefit. In the third quarter of 2013, the Company recorded a $3.1 million (including $2.7 million related to the Utilities) out-of-period income tax benefit, resulting primarily from the reversal of deferred tax liabilities due to errors in the amount of book over tax basis differences in plant and equipment. Management concluded that this out-of-period adjustment was not material to either the current or any prior period financial statements. |
Segment_financial_information
Segment financial information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment financial information | ' | ||||||||||||||||
Segment financial information | |||||||||||||||||
(in thousands) | Electric utility | Bank | Other | Total | |||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||
Revenues from external customers | $ | 803,559 | $ | 63,536 | $ | 1 | $ | 867,096 | |||||||||
Intersegment revenues (eliminations) | 6 | — | (6 | ) | — | ||||||||||||
Revenues | 803,565 | 63,536 | (5 | ) | 867,096 | ||||||||||||
Income (loss) before income taxes | 62,419 | 19,572 | (7,382 | ) | 74,609 | ||||||||||||
Income taxes (benefit) | 23,042 | 6,312 | (3,031 | ) | 26,323 | ||||||||||||
Net income (loss) | 39,377 | 13,260 | (4,351 | ) | 48,286 | ||||||||||||
Preferred stock dividends of subsidiaries | 498 | — | (27 | ) | 471 | ||||||||||||
Net income (loss) for common stock | 38,879 | 13,260 | (4,324 | ) | 47,815 | ||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||
Revenues from external customers | $ | 2,262,038 | $ | 187,771 | $ | (307 | ) | $ | 2,449,502 | ||||||||
Intersegment revenues (eliminations) | 18 | — | (18 | ) | — | ||||||||||||
Revenues | 2,262,056 | 187,771 | (325 | ) | 2,449,502 | ||||||||||||
Income (loss) before income taxes | 174,711 | 58,244 | (23,110 | ) | 209,845 | ||||||||||||
Income taxes (benefit) | 64,686 | 18,769 | (10,190 | ) | 73,265 | ||||||||||||
Net income (loss) | 110,025 | 39,475 | (12,920 | ) | 136,580 | ||||||||||||
Preferred stock dividends of subsidiaries | 1,496 | — | (79 | ) | 1,417 | ||||||||||||
Net income (loss) for common stock | 108,529 | 39,475 | (12,841 | ) | 135,163 | ||||||||||||
Assets (at September 30, 2014) | 5,225,162 | 5,442,336 | 2,973 | 10,670,471 | |||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||
Revenues from external customers | $ | 764,048 | $ | 65,058 | $ | 62 | $ | 829,168 | |||||||||
Intersegment revenues (eliminations) | 6 | — | (6 | ) | — | ||||||||||||
Revenues | 764,054 | 65,058 | 56 | 829,168 | |||||||||||||
Income (loss) before income taxes | 56,573 | 22,808 | (8,633 | ) | 70,748 | ||||||||||||
Income taxes (benefit) | 18,258 | 7,532 | (3,749 | ) | 22,041 | ||||||||||||
Net income (loss) | 38,315 | 15,276 | (4,884 | ) | 48,707 | ||||||||||||
Preferred stock dividends of subsidiaries | 498 | — | (27 | ) | 471 | ||||||||||||
Net income (loss) for common stock | 37,817 | 15,276 | (4,857 | ) | 48,236 | ||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Revenues from external customers | $ | 2,210,002 | $ | 195,841 | $ | 124 | $ | 2,405,967 | |||||||||
Intersegment revenues (eliminations) | 18 | — | (18 | ) | — | ||||||||||||
Revenues | 2,210,020 | 195,841 | 106 | 2,405,967 | |||||||||||||
Income (loss) before income taxes | 141,645 | 69,265 | (24,400 | ) | 186,510 | ||||||||||||
Income taxes (benefit) | 49,210 | 23,915 | (10,535 | ) | 62,590 | ||||||||||||
Net income (loss) | 92,435 | 45,350 | (13,865 | ) | 123,920 | ||||||||||||
Preferred stock dividends of subsidiaries | 1,496 | — | (79 | ) | 1,417 | ||||||||||||
Net income (loss) for common stock | 90,939 | 45,350 | (13,786 | ) | 122,503 | ||||||||||||
Assets (at December 31, 2013) | 5,087,129 | 5,243,824 | 9,091 | 10,340,044 | |||||||||||||
Intercompany electricity sales of the Utilities to the bank and “other” segments are not eliminated because those segments would need to purchase electricity from another source if it were not provided by the Utilities, the profit on such sales is nominal and the elimination of electric sales revenues and expenses could distort segment operating income and net income for common stock. | |||||||||||||||||
Bank fees that ASB charges the Utilities and “other” segments are not eliminated because those segments would pay fees to another financial institution if they were to bank with another institution, the profit on such fees is nominal and the elimination of bank fee income and expenses could distort segment operating income and net income for common stock. |
Electric_utility_subsidiary
Electric utility subsidiary | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Electric utility subsidiary [Abstract] | ' | ||||||||||||||||||||
Electric utility segment | ' | ||||||||||||||||||||
Electric utility segment | |||||||||||||||||||||
Revenue taxes. The Utilities’ revenues include amounts for the recovery of various Hawaii state revenue taxes. Revenue taxes are generally recorded as an expense in the period the related revenues are recognized. However, the Utilities’ revenue tax payments to the taxing authorities in the period are based on the prior year’s billed revenues (in the case of public service company taxes and PUC fees) or on the current year’s cash collections from electric sales (in the case of franchise taxes). The Utilities included in the third quarters of 2014 and 2013 and the nine months ended September 30, 2014 and 2013 approximately $74 million, $69 million, $203 million and $198 million, respectively, of revenue taxes in "revenues" and in "taxes, other than income taxes" expense. | |||||||||||||||||||||
Recent tax developments. In September 2013, the Internal Revenue Service (IRS) issued final regulations addressing the acquisition, production and improvement of tangible property, which were effective January 1, 2014. Management does not expect the impact of these new regulations will be material to the Utilities' financial statements since specific guidance on network (i.e., transmission and distribution) assets and generation property had already been received. The IRS also recently issued guidance addressing the disposition of property and providing an election for retroactive disposition of certain property. The Company will be reviewing the impact of this guidance, but does not expect it to have a material effect on the financial statements. | |||||||||||||||||||||
The Utilities adopted the safe harbor guidelines with respect to network assets in 2011 and in June 2013, the IRS released a revenue procedure relating to deductions for repairs of generation property, which provides some guidance (that is elective) for taxpayers that own steam or electric generation property. This guidance defines the relevant components of generation property to be used in determining whether such component expenditures should be deducted as repairs or capitalized and depreciated by taxpayers. The revenue procedure also provides an extrapolation methodology that could be used by taxpayers in determining deductions for prior years’ repairs without going back to the specific documentation of those years. The guidance does not provide specific methods for determining the repairs amount. Management intends to adopt this guidance through an election in its 2014 tax return, which is expected to result in slightly improved cash flows. | |||||||||||||||||||||
In the second quarter of 2014, the Utilities received IRS approval for a change in the method of accounting for revenues recorded to the Utilities’ revenue balancing accounts (RBAs) (from an accrual basis to a billed basis) for income tax purposes, effective January 1, 2014. HEI has included the effects of this change in its estimated income tax payments for 2014. This change will result in improved cash flows by deferring the payment of income taxes on the RBA revenues recognized until the revenues are billed but will reduce the interest to be accrued on the RBA balance as proposed by the Consumer Advocate. | |||||||||||||||||||||
Unconsolidated variable interest entities. | |||||||||||||||||||||
HECO Capital Trust III. HECO Capital Trust III (Trust III) was created and exists for the exclusive purposes of (i) issuing in March 2004 2,000,000 6.50% Cumulative Quarterly Income Preferred Securities, Series 2004 (2004 Trust Preferred Securities) ($50 million aggregate liquidation preference) to the public and trust common securities ($1.5 million aggregate liquidation preference) to Hawaiian Electric, (ii) investing the proceeds of these trust securities in 2004 Debentures issued by Hawaiian Electric in the principal amount of $31.5 million and issued by Hawaii Electric Light and Maui Electric each in the principal amount of $10 million, (iii) making distributions on these trust securities and (iv) engaging in only those other activities necessary or incidental thereto. The 2004 Trust Preferred Securities are mandatorily redeemable at the maturity of the underlying debt on March 18, 2034, which maturity may be extended to no later than March 18, 2053; and are currently redeemable at the issuer’s option without premium. The 2004 Debentures, together with the obligations of the Utilities under an expense agreement and Hawaiian Electric’s obligations under its trust guarantee and its guarantee of the obligations of Hawaii Electric Light and Maui Electric under their respective debentures, are the sole assets of Trust III. Taken together, Hawaiian Electric’s obligations under the Hawaiian Electric debentures, the Hawaiian Electric indenture, the subsidiary guarantees, the trust agreement, the expense agreement and trust guarantee provide, in the aggregate, a full, irrevocable and unconditional guarantee of payments of amounts due on the Trust Preferred Securities. Trust III has at all times been an unconsolidated subsidiary of Hawaiian Electric. Since Hawaiian Electric, as the holder of 100% of the trust common securities, does not absorb the majority of the variability of Trust III, Hawaiian Electric is not the primary beneficiary and does not consolidate Trust III in accordance with accounting rules on the consolidation of VIEs. Trust III’s balance sheets as of September 30, 2014 and December 31, 2013 each consisted of $51.5 million of 2004 Debentures; $50.0 million of 2004 Trust Preferred Securities; and $1.5 million of trust common securities. Trust III’s income statements for the nine months ended September 30, 2014 and 2013 each consisted of $2.5 million of interest income received from the 2004 Debentures; $2.4 million of distributions to holders of the Trust Preferred Securities; and $0.1 million of common dividends on the trust common securities to Hawaiian Electric. As long as the 2004 Trust Preferred Securities are outstanding, Hawaiian Electric is not entitled to receive any funds from Trust III other than pro-rata distributions, subject to certain subordination provisions, on the trust common securities. In the event of a default by Hawaiian Electric in the performance of its obligations under the 2004 Debentures or under its Guarantees, or in the event any of the Utilities elect to defer payment of interest on any of their respective 2004 Debentures, then Hawaiian Electric will be subject to a number of restrictions, including a prohibition on the payment of dividends on its common stock. | |||||||||||||||||||||
Power purchase agreements. As of September 30, 2014, the Utilities had six purchase power agreements (PPAs) for firm capacity and several other PPAs with variable generation independent power producers (IPPs) and Schedule Q providers (i.e., customers with cogeneration and/or small power production facilities with a capacity of 100 kilowatts (kWs) or less who buy power from or sell power to the Utilities), none of which are currently required to be consolidated as VIEs. The PPAs with AES Hawaii, Inc. (AES Hawaii), Kalaeloa Partners, L.P. (Kalaeloa), Hamakua Energy Partners, L.P. (HEP) and Hpower comprise approximately 90% of IPP contractual firm capacity available to the Utilities. Purchases from all IPPs were as follows: | |||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
AES Hawaii | $ | 38 | $ | 38 | $ | 107 | $ | 98 | |||||||||||||
Kalaeloa | 73 | 80 | 214 | 223 | |||||||||||||||||
HEP | 16 | 15 | 36 | 36 | |||||||||||||||||
Hpower | 18 | 17 | 50 | 44 | |||||||||||||||||
Other IPPs | 48 | 45 | 139 | 126 | |||||||||||||||||
Total IPPs | $ | 193 | $ | 195 | $ | 546 | $ | 527 | |||||||||||||
Some of the IPPs provided sufficient information for Hawaiian Electric to determine that the IPP was not a VIE, or was either a “business” or “governmental organization,” and thus excluded from the scope of accounting standards for VIEs. Other IPPs, including the three largest, declined to provide the information necessary for Hawaiian Electric to determine the applicability of accounting standards for VIEs. | |||||||||||||||||||||
Since 2004, Hawaiian Electric has continued its efforts to obtain from the IPPs the information necessary to make the determinations required under accounting standards for VIEs. In each year from 2005 to 2013, the Utilities sent letters to the identified IPPs requesting the required information. All of these IPPs declined to provide the necessary information, except that Kalaeloa later agreed to provide the information pursuant to the amendments to its PPA (see below) and an entity owning a wind farm provided information as required under its PPA. Management has concluded that the consolidation of two entities owning wind farms was not required as Hawaii Electric Light and Maui Electric do not have variable interests in the entities because the PPAs do not require them to absorb any variability of the entities. If the requested information is ultimately received from the remaining IPPs, a possible outcome of future analyses of such information is the consolidation of one or more of such IPPs in the Consolidated Financial Statements. The consolidation of any significant IPP could have a material effect on the Consolidated Financial Statements, including the recognition of a significant amount of assets and liabilities and, if such a consolidated IPP were operating at a loss and had insufficient equity, the potential recognition of such losses. If the Utilities determine they are required to consolidate the financial statements of such an IPP and the consolidation has a material effect, the Utilities would retrospectively apply accounting standards for VIEs. | |||||||||||||||||||||
Kalaeloa Partners, L.P. In October 1988, Hawaiian Electric entered into a PPA with Kalaeloa, subsequently approved by the PUC, which provided that Hawaiian Electric would purchase 180 megawatts (MW) of firm capacity for a period of 25 years beginning in May 1991. In October 2004, Hawaiian Electric and Kalaeloa entered into amendments to the PPA, subsequently approved by the PUC, which together effectively increased the firm capacity from 180 MW to 208 MW. The energy payments that Hawaiian Electric makes to Kalaeloa include: (1) a fuel component, with a fuel price adjustment based on the cost of low sulfur fuel oil, (2) a fuel additive component, with an adjustment based on changes in the Gross National Product Implicit Price Deflator, and (3) a non-fuel component, with an adjustment based on changes in the Gross National Product Implicit Price Deflator. The capacity payments that Hawaiian Electric makes to Kalaeloa are fixed in accordance with the PPA. Kalaeloa also has a steam delivery cogeneration contract with another customer, the term of which coincides with the PPA. The facility has been certified by the Federal Energy Regulatory Commission as a Qualifying Facility under the Public Utility Regulatory Policies Act of 1978. | |||||||||||||||||||||
Pursuant to the current accounting standards for VIEs, Hawaiian Electric is deemed to have a variable interest in Kalaeloa by reason of the provisions of Hawaiian Electric’s PPA with Kalaeloa. However, management has concluded that Hawaiian Electric is not the primary beneficiary of Kalaeloa because Hawaiian Electric does not have the power to direct the activities that most significantly impact Kalaeloa’s economic performance nor the obligation to absorb Kalaeloa’s expected losses, if any, that could potentially be significant to Kalaeloa. Thus, Hawaiian Electric has not consolidated Kalaeloa in its consolidated financial statements. A significant factor affecting the level of expected losses Hawaiian Electric could potentially absorb is the fact that Hawaiian Electric’s exposure to fuel price variability is limited to the remaining term of the PPA as compared to the facility’s remaining useful life. Although Hawaiian Electric absorbs fuel price variability for the remaining term of the PPA, the PPA does not currently expose Hawaiian Electric to losses as the fuel and fuel related energy payments under the PPA have been approved by the PUC for recovery from customers through base electric rates and through Hawaiian Electric’s ECAC to the extent the fuel and fuel related energy payments are not included in base energy rates. As of September 30, 2014, Hawaiian Electric’s accounts payable to Kalaeloa amounted to $16 million. | |||||||||||||||||||||
Commitments and contingencies. | |||||||||||||||||||||
Environmental regulation. The Utilities are subject to environmental laws and regulations that regulate the operation of existing facilities, the construction and operation of new facilities and the proper cleanup and disposal of hazardous waste and toxic substances. In recent years, legislative, regulatory and governmental activities related to the environment, including proposals and rulemaking under the Clean Air Act and Clean Water Act (CWA), have increased significantly and management anticipates that such activity will continue. | |||||||||||||||||||||
On August 14, 2014, the Environmental Protection Agency (EPA) published in the Federal Register the final regulations required by section 316(b) of the CWA designed to protect aquatic organisms from adverse impacts associated with existing power plant cooling water intake structures. The regulations were effective October 14, 2014 and apply to the cooling water systems for the steam generating units at Hawaiian Electric’s power plants on the island of Oahu. The regulations prescribe a process, including a number of required site-specific studies, for states to develop facility-specific entrainment and impingement controls to be incorporated in the facility’s National Pollutant Discharge Elimination System permit. In the case of Hawaiian Electric's power plants, there are a number of studies that have yet to be completed before Hawaiian Electric and the Department of Health of the State of Hawaii (DOH) can determine what entrainment or impingement controls, if any, might be appropriate. | |||||||||||||||||||||
On February 16, 2012, the Federal Register published the EPA’s final rule establishing the EPA’s National Emission Standards for Hazardous Air Pollutants for fossil-fuel fired steam electrical generating units (EGUs). The final rule, known as the Mercury and Air Toxics Standards (MATS), applies to the 14 EGUs at Hawaiian Electric’s power plants. MATS establishes the Maximum Achievable Control Technology standards for the control of hazardous air pollutants emissions from new and existing EGUs. Based on a review of the final rule and the benefits and costs of alternative compliance strategies, Hawaiian Electric has selected a MATS compliance strategy based on switching to lower emission fuels. The use of lower emission fuels will provide for MATS compliance at lower overall costs and avoid the reduction in operational flexibility imposed by emissions control equipment. Hawaiian Electric requested and received a one-year extension, resulting in a MATS compliance date of April 16, 2016. Hawaiian Electric also has pending with the EPA a Petition for Reconsideration and Stay dated April 16, 2012, and a Request for Expedited Consideration dated August 14, 2013. The submittals ask the EPA to revise an emissions standard for non-continental oil-fired EGUs on the grounds that the promulgated standard was incorrectly derived. The Petition and Request submittals to the EPA included additional data to demonstrate that the existing standard is erroneous. Hawaiian Electric has been in contact with the EPA regarding the status of its Petition, but has not been given a time frame for an EPA decision or action. | |||||||||||||||||||||
On February 6, 2013, the EPA issued a guidance document titled “Next Steps for Area Designations and Implementation of the Sulfur Dioxide National Ambient Air Quality Standard,” which outlines a process that will provide the states additional flexibility and time for their development of one-hour sulfur dioxide (SO2) National Ambient Air Quality Standard (NAAQS) implementation plans. In May 2014, the EPA published a proposed data requirements rule for states to characterize their air quality in relation to the one-hour SO2 NAAQS. Under the proposed rule, the EPA expects to designate areas as attaining, or not attaining, the one-hour SO2 NAAQS in December 2017 or December 2020, depending on whether the area was characterized through modeling or monitoring. Hawaiian Electric will work with the DOH in implementing the one-hour SO2 NAAQS and in developing cost-effective strategies for NAAQS compliance, if needed. | |||||||||||||||||||||
Depending upon the specific measures required for compliance with the CWA 316(b) regulations and MATS, and the rules and guidance developed for compliance with the more stringent NAAQS, the Utilities may be required to incur material capital expenditures and other compliance costs, but such amounts and their timing are not determinable at this time. Additionally, the combined effects of these regulatory initiatives may result in a decision to retire or deactivate certain generating units earlier than anticipated. | |||||||||||||||||||||
Hawaiian Electric, Hawaii Electric Light and Maui Electric, like other utilities, periodically encounter petroleum or other chemical releases into the environment associated with current or previous operations and report and take action on these releases when and as required by applicable law and regulations. The Utilities believe the costs of responding to such releases identified to date will not have a material adverse effect, individually or in the aggregate, on Hawaiian Electric’s consolidated results of operations, financial condition or liquidity. | |||||||||||||||||||||
Potential Clean Air Act Enforcement. On July 1, 2013, Hawaii Electric Light and Maui Electric received a letter from the U.S. Department of Justice (DOJ) asserting potential violations of the Prevention of Significant Deterioration (PSD) | |||||||||||||||||||||
and Title V requirements of the Clean Air Act involving the Hill and Kahului Power Plants. The EPA referred the matter to the DOJ for enforcement based on Hawaii Electric Light’s and Maui Electric’s responses to information requests in 2010 and 2012. The letter expresses an interest in resolving the matter without the issuance of a notice of violation. The parties had preliminary discussions in February 2014, and are continuing to negotiate toward a resolution of the DOJ’s claims. As part of the ongoing negotiations, the DOJ proposed in November 2014 entering into a consent decree pursuant to which the Utilities would install certain pollution controls and pay a penalty. The Utilities are currently reviewing the proposal, but are unable to estimate the amount or effect of a consent decree, if any, at this time. | |||||||||||||||||||||
Former Molokai Electric Company generation site. In 1989, Maui Electric acquired by merger Molokai Electric Company. Molokai Electric Company had sold its former generation site (Site) in 1983, but continued to operate at the Site under a lease until 1985. The EPA has since performed Brownfield assessments of the Site that identified environmental impacts in the subsurface. Although Maui Electric never operated at the Site and operations there had stopped four years before the merger, in discussions with the EPA and the DOH, Maui Electric agreed to undertake additional investigations at the Site and an adjacent parcel that Molokai Electric Company had used for equipment storage (the Adjacent Parcel) to determine the extent of impacts of subsurface contaminants. A 2011 assessment by a Maui Electric contractor of the Adjacent Parcel identified environmental impacts, including elevated polychlorinated biphenyls (PCBs) in the subsurface soils. In cooperation with the DOH and EPA, Maui Electric is further investigating the Site and the Adjacent Parcel to determine the extent of impacts of PCBs, residual fuel oils, and other subsurface contaminants. In March 2012, Maui Electric accrued an additional $3.1 million (reserve balance of $3.6 million as of September 30, 2014) for the additional investigation and estimated cleanup costs at the Site and the Adjacent Parcel; however, final costs of remediation will depend on the results of continued investigation. Maui Electric received DOH and EPA comments on a draft site investigation plan for site characterization in the fourth quarter of 2013. Management concluded that these comments did not require a change to the reserve balance. The site investigation plan is currently being revised and the final site investigation plan will be submitted to the DOH and EPA in the fourth quarter of 2014. | |||||||||||||||||||||
Pearl Harbor sediment study. The U.S. Navy is conducting a feasibility study for the remediation of contaminated sediment in Pearl Harbor. In the course of its study, the Navy identified elevated levels of PCBs in the sediment offshore from the Waiau Power Plant. The results of the Navy’s study to date, including sampling data and possible remediation approaches, are undergoing further federal review. Hawaiian Electric is also reviewing the study to determine the scope of investigation necessary to identify the potential source of contamination and develop appropriate remedial actions. | |||||||||||||||||||||
In July 2014, the Navy notified Hawaiian Electric of the Navy’s determination that Hawaiian Electric is responsible for cleanup of the area offshore of the Waiau Power Plant. The Navy has also requested that Hawaiian Electric reimburse the costs incurred by the Navy to date to investigate the area, and is asking Hawaiian Electric to engage in negotiations regarding the financing and undertaking of future response actions. The extent of the contamination, the appropriate remedial measures to address it, and Hawaiian Electric’s potential responsibility for any associated costs have not yet been determined. | |||||||||||||||||||||
Global climate change and greenhouse gas emissions reduction. National and international concern about climate change and the contribution of greenhouse gas (GHG) emissions (including carbon dioxide emissions from the combustion of fossil fuels) to climate change have led to action by the State and to federal legislative and regulatory proposals to reduce GHG emissions. | |||||||||||||||||||||
In July 2007, Act 234, which requires a statewide reduction of GHG emissions by January 1, 2020 to levels at or below the statewide GHG emission levels in 1990, became law in Hawaii. On June 20, 2014, the Governor signed the final regulations required to implement Act 234 and the regulations went into effect on June 30, 2014. In general, the regulations will require affected sources that have the potential to emit GHGs in excess of established thresholds to reduce GHG emissions by 16% below 2010 emission levels by 2020. The regulations will also assess affected sources an annual fee based on tons per year of GHG emissions commencing on the effective date of the regulations, estimated to be approximately $0.5 million annually for the Utilities. The DOH GHG regulations also track the federal “Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule” (GHG Tailoring Rule, see below) and would create new thresholds for GHG emissions from new and existing stationary source facilities. | |||||||||||||||||||||
Several approaches (e.g., “cap and trade”) to GHG emission reduction have been either introduced or discussed in the U.S. Congress; however, no federal legislation has yet been enacted. | |||||||||||||||||||||
On September 22, 2009, the EPA issued its Final Mandatory Reporting of Greenhouse Gases Rule, which requires that sources emitting GHGs above certain threshold levels monitor and report GHG emissions. The Utilities have submitted the required reports for 2010 through 2013 to the EPA. In December 2009, the EPA made the finding that motor vehicle GHG emissions endanger public health or welfare. Since then, the EPA has also issued rules that begin to address GHG emissions from stationary sources, like the Utilities’ EGUs. | |||||||||||||||||||||
In June 2010, the EPA issued its GHG Tailoring Rule covering the permitting of new or modified stationary sources that have the potential to emit GHGs in greater quantities than the thresholds set forth in the rule, under the Prevention of Significant Deterioration program. On June 23, 2014, the U.S. Supreme Court issued a decision that invalidated the GHG Tailoring Rule, to the extent it regulated sources based solely on their GHG emissions. It also invalidated the GHG emissions threshold for regulation. The current status of the GHG Tailoring Rule, and any further regulatory action the EPA may take in light of this recent decision, are uncertain. | |||||||||||||||||||||
On January 8, 2014, the EPA published in the Federal Register its new proposal for New Source Performance Standards for GHG from new generating units. The proposed rule on GHG from new EGUs does not apply to oil- fired combustion turbines or diesel engine generators, and is not otherwise expected to have significant impacts on the Utilities. | |||||||||||||||||||||
On June 18, 2014, the EPA published in the Federal Register its proposed rule for GHG emissions from existing power plants. The rule sets interim and final state-wide, state-specific emission performance goals, expressed as lb CO2/MWh, that would apply to the state’s affected sources. The interim goal would apply as an average over the period 2020 through 2029, with the final goal to be met by 2030. On the same date, the EPA also published a separate rule for modified and reconstructed power plants. The EPA’s plan is to issue the final rules no later than June 1, 2015. Hawaiian Electric is still evaluating the proposed rules for GHG emissions from existing, modified, and reconstructed sources, and how they might relate to the recently issued State GHG rules. Hawaiian Electric will participate in the federal GHG rulemaking process, and in the implementation of the State GHG rules, to try to reconcile federal GHG regulation, state GHG regulation, and any action the EPA may take as a result of the recent U.S. Supreme Court opinion, to facilitate clear and cost-effective compliance. The Utilities will continue to evaluate the impact of proposed GHG rules and regulations as they develop. Final regulations may impose significant compliance costs, and may require reductions in fossil fuel use and the addition of renewable energy resources in excess of the requirements of the RPS law. | |||||||||||||||||||||
While the timing, extent and ultimate effects of climate change cannot be determined with any certainty, climate change is predicted to result in sea level rise, which could potentially impact coastal and other low-lying areas (where much of the Utilities’ electric infrastructure is sited), and could cause erosion of beaches, saltwater intrusion into aquifers and surface ecosystems, higher water tables and increased flooding and storm damage due to heavy rainfall. The effects of climate change on the weather (for example, floods or hurricanes), sea levels, and water availability and quality have the potential to materially adversely affect the results of operations, financial condition and liquidity of the Utilities. For example, severe weather could cause significant harm to the Utilities’ physical facilities. | |||||||||||||||||||||
The Utilities have taken, and continue to identify opportunities to take, direct action to reduce GHG emissions from their operations, including, but not limited to, supporting DSM programs that foster energy efficiency, using renewable resources for energy production and purchasing power from IPPs generated by renewable resources, burning renewable biodiesel in Hawaiian Electric’s Campbell Industrial Park combustion turbine No. 1 (CIP CT-1), using biodiesel for startup and shutdown of selected Maui Electric generating units, and testing biofuel blends in other Hawaiian Electric and Maui Electric generating units. The Utilities are also working with the State of Hawaii and other entities to pursue the use of liquefied natural gas as a cleaner and lower cost fuel to replace, at least in part, the petroleum oil that would otherwise be used. Management is unable to evaluate the ultimate impact on the Utilities’ operations of eventual comprehensive GHG regulation. However, management believes that the various initiatives it is undertaking will provide a sound basis for managing the Utilities’ carbon footprint and meeting GHG reduction goals that will ultimately emerge. | |||||||||||||||||||||
Asset retirement obligations. Asset retirement obligations (AROs) represent legal obligations associated with the retirement of certain tangible long-lived assets, are measured as the present value of the projected costs for the future retirement of specific assets and are recognized in the period in which the liability is incurred if a reasonable estimate of fair value can be made. The Utilities' recognition of AROs have no impact on their earnings. The cost of the AROs is recovered over the life of the asset through depreciation. AROs recognized by the Utilities relate to obligations to retire plant and equipment, including removal of asbestos and other hazardous materials. | |||||||||||||||||||||
Hawaiian Electric has recorded estimated AROs related to removing retired generating units at its Honolulu and Waiau power plants. These removal projects are ongoing, with significant activity and expenditures occurring in 2014. Both removal projects are expected to continue through 2015. | |||||||||||||||||||||
Changes to the ARO liability included in “Other liabilities” on Hawaiian Electric’s balance sheet were as follows: | |||||||||||||||||||||
Nine months ended September 30 | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Balance, beginning of period | $ | 43,106 | $ | 48,431 | |||||||||||||||||
Accretion expense | 816 | 833 | |||||||||||||||||||
Liabilities incurred | — | — | |||||||||||||||||||
Liabilities settled | (11,338 | ) | (1,165 | ) | |||||||||||||||||
Revisions in estimated cash flows | — | (916 | ) | ||||||||||||||||||
Balance, end of period | $ | 32,584 | $ | 47,183 | |||||||||||||||||
Decoupling. In 2010, the PUC issued an order approving decoupling, which was implemented by Hawaiian Electric on March 1, 2011, by Hawaii Electric Light on April 9, 2012 and by Maui Electric on May 4, 2012. Decoupling is a regulatory model that is intended to facilitate meeting the State of Hawaii’s goals to transition to a clean energy economy and achieve an aggressive renewable portfolio standard. The decoupling model implemented in Hawaii delinks revenues from sales and includes annual revenue adjustments for certain other operation and maintenance (O&M) expenses and rate base changes. The decoupling mechanism has three components: (1) a sales decoupling component via a revenue balancing account (RBA), (2) a revenue escalation component via a revenue adjustment mechanism (RAM) and (3) an earnings sharing mechanism, which would provide for a reduction of revenues between rate cases in the event the utility exceeds the return on average common equity (ROACE) allowed in its most recent rate case. Decoupling provides for more timely cost recovery and earning on investments. The implementation of decoupling has resulted in an improvement in the Utilities’ under-earning situation that has existed over the last several years. | |||||||||||||||||||||
On May 31, 2013, as provided for in its original order issued in 2010 approving decoupling and citing three years of implementation experience for Hawaiian Electric, the PUC opened an investigative docket to review whether the decoupling mechanisms are functioning as intended, are fair to the Utilities and their ratepayers, and are in the public interest. The PUC affirmed its support for the continuation of the sales decoupling (RBA) mechanism and stated its interest in evaluating the RAM to ensure it provides the appropriate balance of risks, costs, incentives and performance requirements, as well as administrative efficiency, and whether the current interest rate applied to the outstanding RBA balance is reasonable. The Utilities and the Consumer Advocate were named as parties to this proceeding and filed a joint statement of position that any material changes to the current decoupling mechanism should be made prospectively after 2016, unless the Utilities and the Consumer Advocate mutually agree to the change in this proceeding. The PUC granted several parties’ motions to intervene. In October 2013, the PUC issued orders that bifurcated the proceeding (Schedule A and Schedule B) and identified issues and procedural schedules for both Schedules. | |||||||||||||||||||||
Schedule A issues include: | |||||||||||||||||||||
• | for the RBA, the reasonableness of the interest rate related to the carrying charge of the outstanding RBA balance and whether there should be a risk sharing adjustment to the RBA; | ||||||||||||||||||||
• | for the RAM, whether it is reasonable to true up all actual prior year baseline projects, which are those capital projects less than $2.5 million, at year end or implement alternative methods to calculate the RAM rate base; | ||||||||||||||||||||
• | whether a risk sharing mechanism should be incorporated into the RBA; | ||||||||||||||||||||
• | whether performance metrics should be determined and reported; and | ||||||||||||||||||||
• | whether other factors should be considered if potential changes to existing RBA and RAM provisions are required. | ||||||||||||||||||||
Schedule B issues include: | |||||||||||||||||||||
• | whether performance metrics and incentives (rewards or penalties) should be implemented to control costs and encourage the Utilities to make necessary or appropriate changes to strategic and action plans; | ||||||||||||||||||||
• | whether the allocation of risk as a result of the decoupling mechanism is fairly reflected in the cost of capital allowed in rates; | ||||||||||||||||||||
• | changes or alternatives to the existing RAM; and | ||||||||||||||||||||
• | changes to ratemaking procedures to improve efficiency and/or effectiveness. | ||||||||||||||||||||
Oral arguments on Schedule A issues were held in January 2014. On February 7, 2014, the PUC issued a decision and order (D&O) on the Schedule A issues, which made certain modifications to the decoupling mechanism. Specifically, the D&O requires: | |||||||||||||||||||||
• | An adjustment to the Rate Base RAM Adjustment to include 90% of the amount of the current RAM Period Rate Base RAM Adjustment that exceeds the Rate Base RAM Adjustment from the prior year, to be effective with the Utilities’ 2014 decoupling filing. | ||||||||||||||||||||
• | Effective March 1, 2014, the interest rate to be applied on the outstanding RBA balances to be the short term debt rate used in each Utilities last rate case (ranging from 1.25% to 3.25%), instead of the 6% that had been previously approved. | ||||||||||||||||||||
The D&O required the Utilities to immediately investigate the possibility of deferring the payment of income taxes on the accrued amounts of decoupling revenue, and to report the results with recommendations to the PUC. The PUC reserved the right to determine in the next decoupling and rate case filings whether each Utilities’ allowed income taxes should be adjusted for this change. The Utilities updated the PUC on their progress in investigating the tax treatment of the revenues included in the RBA balances and provided information to the PUC concerning the application to the IRS for an accounting methods change to recognize RBA revenues for tax purposes when amounts are billed. On April 28, 2014, the Utilities received approval for this change from the IRS, effective January 1, 2014. This change will reduce the amount of interest to be accrued on the RBA balance as proposed by the Consumer Advocate (see "Recent tax developments" above). | |||||||||||||||||||||
As required, the Utilities developed websites to present certain Schedule A performance metrics and proposed additional performance metrics. These metrics are all currently being reviewed by the PUC and, if approved, will be available to the public. | |||||||||||||||||||||
The Schedule A issues on whether it is reasonable to automatically include all actual prior year capital expenditures on baseline projects in the Rate Base RAM and whether a risk sharing mechanism should be incorporated into the RBA, particularly with respect to the PUC’s concerns regarding maintaining and enhancing the Utilities' incentives to control costs and appropriately allocating risk and compensation for risk, will be addressed in the Schedule B proceedings. | |||||||||||||||||||||
On May 20, 2014, the Utilities and other parties filed their respective initial statements of position for the Schedule B issues in this proceeding. Specifically, the Utilities concluded that (1) the existing RAM provision can be modified to address concerns stated by the PUC regarding the review of baseline capital projects and the growth in plant additions, and (2) targeted incentives can be crafted to incentivize the activities identified by the PUC. | |||||||||||||||||||||
On September 15, 2014, the Utilities and other parties filed their respective reply statements of position for the Schedule B issues in this proceeding. Specifically, the Utilities concluded that (1) the existing RAM provision can be modified to address PUC concerns regarding the review of baseline capital projects, and to provide more incentives for the Utilities to control capital expenditure costs while aggressively moving forward with their plans, (2) if the RAM is to be replaced, the Utilities can support transition to a new appropriately designed incentive-based regulatory (IBR) model, (3) developing an IBR mechanism and process consistent with the objectives in the Utilities’ approved plans will also take reasonable time; thus, it would be more reasonable to target 2017 to begin implementation of any new IBR mechanism and decoupling should be retained in the meantime and (4) the Utilities would support the development of performance metrics to be implemented as part of a new IBR mechanism. | |||||||||||||||||||||
The Utilities and other parties participated in panel hearings on Schedule B issues in late October 2014. | |||||||||||||||||||||
Management cannot predict the outcome of the proceedings or the ultimate impact of the proceedings on the results of operation of the Utilities. | |||||||||||||||||||||
April 2014 regulatory orders. In April 2014, the PUC issued four orders that collectively address certain key policy, resource planning and operational issues for the Utilities. The four orders are as follows: | |||||||||||||||||||||
Integrated Resource Planning. The PUC did not accept the Utilities’ Integrated Resource Plan and Action Plans submission, and, in lieu of an approved plan, has commenced other initiatives to enable resource planning. The PUC also terminated the Utilities' integrated resource planning (IRP) cycle, including the filing of a mid-cycle evaluation report, and formally concluded the IRP advisory group. The PUC directed each of Hawaiian Electric and Maui Electric to file within 120 days its respective Power Supply Improvement Plans (PSIPs), and the PSIPs were filed in August 2014. The PUC also provided its inclinations on the future of Hawaii’s electric utilities in an exhibit to the order. The exhibit provides the PUC’s perspectives on the vision, business strategies and regulatory policy changes required to align the Utilities' business model with customers’ interests and the state’s public policy goals. | |||||||||||||||||||||
Reliability Standards Working Group. The PUC ordered the Utilities (and in some cases the Kauai Island Utility Cooperative (KIUC)) to take timely actions intended to lower energy costs, improve system reliability and address emerging challenges to integrate additional renewable energy. In addition to the PSIPs mentioned above, the PUC ordered certain filing requirements which include the following: | |||||||||||||||||||||
• | Distributed Generation Interconnection Plan to be filed within 120 days. The Utilities’ Plan was filed in August 2014. | ||||||||||||||||||||
• | Plan to implement an on-going distribution circuit monitoring program to measure real-time voltage and other power quality parameters to be filed within 60 days. The plan shall achieve full implementation of the distribution circuit monitoring program within 180 days. The Utilities' Plan was filed in June 2014. | ||||||||||||||||||||
• | Action Plan for improving efficiencies in the interconnection requirements studies to be filed within 30 days. The Utilities' Plan was filed in May 2014. | ||||||||||||||||||||
• | The Utilities are to file monthly reports providing details about interconnection requirements studies. | ||||||||||||||||||||
• | Proposal to implement an integrated interconnection queue for each distribution circuit for each island grid to be filed within 120 days. The Utilities’ integrated interconnection queue plan was filed in August 2014. | ||||||||||||||||||||
The PUC also stated it would be opening new dockets to address (1) reliability standards, (2) the technical, economic and policy issues associated with distributed energy resources and (3) the Hawaii electricity reliability administrator, which is a third party position which the legislature has authorized the PUC to create by contract to provide support for the PUC in developing and periodically updating local grid reliability standards and procedures and interconnection requirements and overseeing grid access and operation. | |||||||||||||||||||||
Policy Statement and Order Regarding Demand Response Programs. The PUC provided guidance concerning the objectives and goals for demand response programs, and ordered the Utilities to develop within 90 days an integrated Demand Response Portfolio Plan that will enhance system operations and reduce costs to customers. The Utilities’ Plan was filed in July 2014. In August 2014, the PUC invited public comment on the Utilities’ Plan. The Utilities submitted a status update in October 2014. | |||||||||||||||||||||
Maui Electric Company 2012 Test Year Rate Case. The PUC acknowledged the extensive analyses provided by Maui Electric in its System Improvement and Curtailment Reduction Plan filed in September 2013. The PUC stated that it is encouraged by the changes in Maui Electric’s operations that have led to a significant reduction in the curtailment of renewables, but stated that Maui Electric has not set forth a clearly defined path that addresses integration and curtailment of additional renewables. The PUC directed Maui Electric to present a PSIP within 120 days to address present and future system operations so as to not only reduce curtailment, but to optimize the operation of its system for its customers’ benefit. The Maui Electric PSIP was filed in August 2014, and will be reviewed by the PUC in a new docket along with the Hawaiian Electric and Hawaii Electric Light PSIPs. | |||||||||||||||||||||
Review of PSIPs. Collectively, the PUC's April 2014 resource planning orders confirm the energy policy and operational priorities that will guide the Utilities' strategies and plans going forward. | |||||||||||||||||||||
PSIPs for Hawaiian Electric, Maui Electric and Hawaii Electric Light (updating its Power Supply Plan filed in April 2014) were filed in August 2014. The PSIPs each include a tactical plan to transform how electric utility services will be offered to meet customer needs and produce higher levels of renewable energy. Each plan contains a diversified mix of technologies, including significant distributed and utility‑scale renewable resources, that is expected to result, on a consolidated basis, in over 65% of the Utilities’ energy being produced from renewable resources by 2030. Under these plans, the Utilities will support sustainable growth of rooftop solar, expand use of energy storage systems, empower customers by developing smart grids, offer new products and services to customers (e.g., community solar, microgrids and voluntary “demand response” programs), switch from high-priced oil to lower cost liquefied natural gas, retire higher-cost, less efficient existing oil-based steam generators, and lower full service residential customer bills in real dollars. | |||||||||||||||||||||
The PSIPs will be reviewed by the PUC in a new docket, and a number of parties have moved to intervene in the proceeding. In September 2014, the PUC invited the public to comment on the PSIPs. In October 2014, the Utilities filed responses to information requests on the PSIPs from the PUC. | |||||||||||||||||||||
Management cannot predict the outcome of the proceedings to review the Plans submitted in response to the PUC’s April 2014 resource planning orders, or the ultimate impact of the proceedings on the results of operations of the Utilities. | |||||||||||||||||||||
. In August 2014, Hawaiian Electric entered into a 15-year agreement with Fortis BC Energy Inc. (Fortis) for liquefaction capacity for liquefied natural gas (LNG) under tariffed rates approved by the British Columbia Utilities Commission. The agreement, which is subject to Hawaii PUC approval, other regulatory approvals and permits, and other conditions precedent before it becomes effective, provides for LNG liquefaction capacity purchases of 800,000 tonnes per year for the first five years, 700,000 tonnes per year for the next five years, and 600,000 tonnes per year for the last five years. Fortis must also obtain regulatory and other approvals for the agreement to become effective. The Fortis agreement is assignable and can be assigned to the selected bidder in the Utilities’ request for proposal (RFP) for the supply of containerized LNG and will help ensure that liquefaction capacity is available at pricing that management believes will lower customer bills. | |||||||||||||||||||||
Fuel oil contracts. On August 27, 2014, Chevron Products Company, a division of Chevron U.S.A. Inc. (Chevron), and Hawaiian Electric entered into a first amendment (Amendment) to the Low Sulfur Fuel Oil Supply (LSFO) Contract, which terminates on December 31, 2016 and may automatically renew for annual terms thereafter unless earlier terminated by either party. The Amendment reduces the price of fuel above certain volumes, allows for increases in the volume of fuel, and modifies the specification of certain petroleum products supplied under the contract. In addition, Chevron agreed to supply a blend of LSFO and ultra-low sulfur diesel as soon as January 2016 (for supply through the end of the contract term, December 31, 2016) to help Hawaiian Electric meet more stringent EPA air emission requirements known as Mercury and Air Toxics Standards. The Amendment is subject to approval of the PUC, and can be terminated if approval is not received by April 15, 2015. | |||||||||||||||||||||
On August 27, 2014, Chevron and the Utilities entered into a third amendment to the Inter-Island Industrial Fuel Oil and Diesel Fuel Supply Contract, which amendment extended the term of the contract through December 31, 2016 and may automatically renew for an annual term thereafter unless earlier terminated by either party. | |||||||||||||||||||||
On August 28, 2014, Hawaiian Electric provided notice to Hawaiian Independent Energy LLC (HIE) that it will not renew the LSFO contract that was assigned to HIE from Tesoro Hawaii Corporation. The term of the contract is through December 31, 2014, and renews automatically unless terminated by either party. | |||||||||||||||||||||
Consolidating financial information. Hawaiian Electric is not required to provide separate financial statements or other disclosures concerning Hawaii Electric Light and Maui Electric to holders of the 2004 Debentures issued by Hawaii Electric Light and Maui Electric to Trust III since all of their voting capital stock is owned, and their obligations with respect to these securities have been fully and unconditionally guaranteed, on a subordinated basis, by Hawaiian Electric. Consolidating information is provided below for Hawaiian Electric and each of its subsidiaries for the periods ended and as of the dates indicated. | |||||||||||||||||||||
Hawaiian Electric also unconditionally guarantees Hawaii Electric Light’s and Maui Electric’s obligations (a) to the State of Hawaii for the repayment of principal and interest on Special Purpose Revenue Bonds issued for the benefit of Hawaii Electric Light and Maui Electric, (b) under their respective private placement note agreements and the Hawaii Electric Light notes and Maui Electric notes issued thereunder and (c) relating to the trust preferred securities of Trust III. Hawaiian Electric is also obligated, after the satisfaction of its obligations on its own preferred stock, to make dividend, redemption and liquidation payments on Hawaii Electric Light’s and Maui Electric’s preferred stock if the respective subsidiary is unable to make such payments. | |||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Income (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Revenues | $ | 579,777 | 111,154 | 112,656 | — | (22 | ) | $ | 803,565 | ||||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 229,068 | 29,555 | 50,809 | — | — | 309,432 | |||||||||||||||
Purchased power | 142,121 | 34,166 | 16,595 | — | — | 192,882 | |||||||||||||||
Other operation and maintenance | 71,584 | 19,837 | 16,892 | — | — | 108,313 | |||||||||||||||
Depreciation | 27,302 | 8,975 | 5,317 | — | — | 41,594 | |||||||||||||||
Taxes, other than income taxes | 54,412 | 10,607 | 10,169 | — | — | 75,188 | |||||||||||||||
Total expenses | 524,487 | 103,140 | 99,782 | — | — | 727,409 | |||||||||||||||
Operating income | 55,290 | 8,014 | 12,874 | — | (22 | ) | 76,156 | ||||||||||||||
Allowance for equity funds used during construction | 1,668 | 142 | 127 | — | — | 1,937 | |||||||||||||||
Equity in earnings of subsidiaries | 9,800 | — | — | — | (9,800 | ) | — | ||||||||||||||
Interest expense and other charges, net | (11,196 | ) | (2,811 | ) | (2,429 | ) | — | 22 | (16,414 | ) | |||||||||||
Allowance for borrowed funds used during construction | 634 | 54 | 52 | — | — | 740 | |||||||||||||||
Income before income taxes | 56,196 | 5,399 | 10,624 | — | (9,800 | ) | 62,419 | ||||||||||||||
Income taxes | 17,047 | 1,965 | 4,030 | — | — | 23,042 | |||||||||||||||
Net income | 39,149 | 3,434 | 6,594 | — | (9,800 | ) | 39,377 | ||||||||||||||
Preferred stock dividends of subsidiaries | — | 133 | 95 | — | — | 228 | |||||||||||||||
Net income attributable to Hawaiian Electric | 39,149 | 3,301 | 6,499 | — | (9,800 | ) | 39,149 | ||||||||||||||
Preferred stock dividends of Hawaiian Electric | 270 | — | — | — | — | 270 | |||||||||||||||
Net income for common stock | $ | 38,879 | 3,301 | 6,499 | — | (9,800 | ) | $ | 38,879 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Comprehensive Income (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income for common stock | $ | 38,879 | 3,301 | 6,499 | — | (9,800 | ) | $ | 38,879 | ||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 2,552 | 317 | 272 | — | (589 | ) | 2,552 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (2,542 | ) | (319 | ) | (272 | ) | — | 591 | (2,542 | ) | |||||||||||
Other comprehensive income (loss), net of taxes | 10 | (2 | ) | — | — | 2 | 10 | ||||||||||||||
Comprehensive income attributable to common shareholder | $ | 38,889 | 3,299 | 6,499 | — | (9,798 | ) | $ | 38,889 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Income (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Revenues | $ | 547,434 | 107,957 | 108,699 | — | (36 | ) | $ | 764,054 | ||||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 206,478 | 27,615 | 49,267 | — | — | 283,360 | |||||||||||||||
Purchased power | 143,280 | 34,480 | 17,101 | — | — | 194,861 | |||||||||||||||
Other operation and maintenance | 71,498 | 16,793 | 16,221 | 1 | — | 104,513 | |||||||||||||||
Depreciation | 25,442 | 8,547 | 5,006 | — | — | 38,995 | |||||||||||||||
Taxes, other than income taxes | 51,781 | 10,457 | 10,234 | — | — | 72,472 | |||||||||||||||
Total expenses | 498,479 | 97,892 | 97,829 | 1 | — | 694,201 | |||||||||||||||
Operating income (loss) | 48,955 | 10,065 | 10,870 | (1 | ) | (36 | ) | 69,853 | |||||||||||||
Allowance for equity funds used during construction | 914 | 222 | 119 | — | — | 1,255 | |||||||||||||||
Equity in earnings of subsidiaries | 10,794 | — | — | — | (10,794 | ) | — | ||||||||||||||
Interest expense and other charges, net | (9,883 | ) | (2,920 | ) | (2,266 | ) | — | 36 | (15,033 | ) | |||||||||||
Allowance for borrowed funds used during construction | 358 | 91 | 49 | — | — | 498 | |||||||||||||||
Income (loss) before income taxes | 51,138 | 7,458 | 8,772 | (1 | ) | (10,794 | ) | 56,573 | |||||||||||||
Income taxes | 13,051 | 1,881 | 3,326 | — | — | 18,258 | |||||||||||||||
Net income (loss) | 38,087 | 5,577 | 5,446 | (1 | ) | (10,794 | ) | 38,315 | |||||||||||||
Preferred stock dividends of subsidiaries | — | 133 | 95 | — | — | 228 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 38,087 | 5,444 | 5,351 | (1 | ) | (10,794 | ) | 38,087 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 270 | — | — | — | — | 270 | |||||||||||||||
Net income (loss) for common stock | $ | 37,817 | 5,444 | 5,351 | (1 | ) | (10,794 | ) | $ | 37,817 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income (loss) for common stock | $ | 37,817 | 5,444 | 5,351 | (1 | ) | (10,794 | ) | $ | 37,817 | |||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 5,173 | 720 | 639 | — | (1,359 | ) | 5,173 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (5,156 | ) | (721 | ) | (639 | ) | — | 1,360 | (5,156 | ) | |||||||||||
Other comprehensive income (loss), net of taxes | 17 | (1 | ) | — | — | 1 | 17 | ||||||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 37,834 | 5,443 | 5,351 | (1 | ) | (10,793 | ) | $ | 37,834 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Income (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Revenues | $ | 1,623,223 | 319,629 | 319,265 | — | (61 | ) | $ | 2,262,056 | ||||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 628,164 | 92,234 | 145,591 | — | — | 865,989 | |||||||||||||||
Purchased power | 406,895 | 91,827 | 47,399 | — | — | 546,121 | |||||||||||||||
Other operation and maintenance | 199,091 | 48,701 | 47,691 | — | — | 295,483 | |||||||||||||||
Depreciation | 81,903 | 26,926 | 15,961 | — | — | 124,790 | |||||||||||||||
Taxes, other than income taxes | 152,545 | 30,127 | 30,111 | — | — | 212,783 | |||||||||||||||
Total expenses | 1,468,598 | 289,815 | 286,753 | — | — | 2,045,166 | |||||||||||||||
Operating income | 154,625 | 29,814 | 32,512 | — | (61 | ) | 216,890 | ||||||||||||||
Allowance for equity funds used during construction | 4,557 | 328 | 48 | — | — | 4,933 | |||||||||||||||
Equity in earnings of subsidiaries | 28,576 | — | — | — | (28,576 | ) | — | ||||||||||||||
Interest expense and other charges, net | (33,236 | ) | (8,411 | ) | (7,403 | ) | — | 61 | (48,989 | ) | |||||||||||
Allowance for borrowed funds used during construction | 1,728 | 126 | 23 | — | — | 1,877 | |||||||||||||||
Income before income taxes | 156,250 | 21,857 | 25,180 | — | (28,576 | ) | 174,711 | ||||||||||||||
Income taxes | 46,911 | 8,149 | 9,626 | — | — | 64,686 | |||||||||||||||
Net income | 109,339 | 13,708 | 15,554 | — | (28,576 | ) | 110,025 | ||||||||||||||
Preferred stock dividends of subsidiaries | — | 400 | 286 | — | — | 686 | |||||||||||||||
Net income attributable to Hawaiian Electric | 109,339 | 13,308 | 15,268 | — | (28,576 | ) | 109,339 | ||||||||||||||
Preferred stock dividends of Hawaiian Electric | 810 | — | — | — | — | 810 | |||||||||||||||
Net income for common stock | $ | 108,529 | 13,308 | 15,268 | — | (28,576 | ) | $ | 108,529 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Comprehensive Income (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income for common stock | $ | 108,529 | 13,308 | 15,268 | — | (28,576 | ) | $ | 108,529 | ||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 7,659 | 953 | 817 | — | (1,770 | ) | 7,659 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (7,627 | ) | (955 | ) | (817 | ) | — | 1,772 | (7,627 | ) | |||||||||||
Other comprehensive income (loss), net of taxes | 32 | (2 | ) | — | — | 2 | 32 | ||||||||||||||
Comprehensive income attributable to common shareholder | $ | 108,561 | 13,306 | 15,268 | — | (28,574 | ) | $ | 108,561 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Income (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Revenues | $ | 1,576,068 | 320,330 | 313,725 | — | (103 | ) | $ | 2,210,020 | ||||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 631,824 | 94,120 | 151,794 | — | — | 877,738 | |||||||||||||||
Purchased power | 389,706 | 93,880 | 43,083 | — | — | 526,669 | |||||||||||||||
Other operation and maintenance | 212,474 | 46,158 | 42,089 | 2 | — | 300,723 | |||||||||||||||
Depreciation | 75,150 | 25,641 | 15,074 | — | — | 115,865 | |||||||||||||||
Taxes, other than income taxes | 149,282 | 30,113 | 29,681 | — | — | 209,076 | |||||||||||||||
Total expenses | 1,458,436 | 289,912 | 281,721 | 2 | — | 2,030,071 | |||||||||||||||
Operating income (loss) | 117,632 | 30,418 | 32,004 | (2 | ) | (103 | ) | 179,949 | |||||||||||||
Allowance for equity funds used during construction | 3,144 | 552 | 334 | — | — | 4,030 | |||||||||||||||
Equity in earnings of subsidiaries | 30,446 | — | — | — | (30,446 | ) | — | ||||||||||||||
Interest expense and other charges, net | (28,723 | ) | (8,566 | ) | (6,774 | ) | — | 103 | (43,960 | ) | |||||||||||
Allowance for borrowed funds used during construction | 1,268 | 226 | 132 | — | — | 1,626 | |||||||||||||||
Income (loss) before income taxes | 123,767 | 22,630 | 25,696 | (2 | ) | (30,446 | ) | 141,645 | |||||||||||||
Income taxes | 32,018 | 7,486 | 9,706 | — | — | 49,210 | |||||||||||||||
Net income (loss) | 91,749 | 15,144 | 15,990 | (2 | ) | (30,446 | ) | 92,435 | |||||||||||||
Preferred stock dividends of subsidiaries | — | 400 | 286 | — | — | 686 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 91,749 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | 91,749 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 810 | — | — | — | — | 810 | |||||||||||||||
Net income (loss) for common stock | $ | 90,939 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | $ | 90,939 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income (loss) for common stock | $ | 90,939 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | $ | 90,939 | |||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 15,520 | 2,160 | 1,918 | — | (4,078 | ) | 15,520 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (15,468 | ) | (2,162 | ) | (1,918 | ) | — | 4,080 | (15,468 | ) | |||||||||||
Other comprehensive income (loss), net of taxes | 52 | (2 | ) | — | — | 2 | 52 | ||||||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 90,991 | 14,742 | 15,704 | (2 | ) | (30,444 | ) | $ | 90,991 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Balance Sheet (unaudited) | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consoli- | Hawaiian Electric | |||||||||||||||
subsidiaries | dating | Consolidated | |||||||||||||||||||
adjustments | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||
Utility property, plant and equipment | |||||||||||||||||||||
Land | $ | 43,816 | 5,464 | 3,064 | — | — | $ | 52,344 | |||||||||||||
Plant and equipment | 3,700,063 | 1,165,542 | 1,036,792 | — | — | 5,902,397 | |||||||||||||||
Less accumulated depreciation | (1,245,695 | ) | (472,044 | ) | (449,806 | ) | — | — | (2,167,545 | ) | |||||||||||
Construction in progress | 149,115 | 13,267 | 16,808 | — | — | 179,190 | |||||||||||||||
Utility property, plant and equipment, net | 2,647,299 | 712,229 | 606,858 | — | — | 3,966,386 | |||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation | 4,948 | 82 | 1,531 | — | — | 6,561 | |||||||||||||||
Total property, plant and equipment, net | 2,652,247 | 712,311 | 608,389 | — | — | 3,972,947 | |||||||||||||||
Investment in wholly owned subsidiaries, at equity | 532,766 | — | — | — | (532,766 | ) | — | ||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 14,856 | 809 | 2,621 | 101 | — | 18,387 | |||||||||||||||
Advances to affiliates | 11,800 | — | — | — | (11,800 | ) | — | ||||||||||||||
Customer accounts receivable, net | 132,809 | 31,023 | 25,901 | — | — | 189,733 | |||||||||||||||
Accrued unbilled revenues, net | 108,306 | 16,474 | 18,373 | — | — | 143,153 | |||||||||||||||
Other accounts receivable, net | 22,386 | 6,044 | 3,070 | — | (11,992 | ) | 19,508 | ||||||||||||||
Fuel oil stock, at average cost | 88,285 | 13,959 | 16,059 | — | — | 118,303 | |||||||||||||||
Materials and supplies, at average cost | 36,502 | 7,870 | 16,267 | — | — | 60,639 | |||||||||||||||
Prepayments and other | 32,033 | 6,112 | 12,358 | — | (233 | ) | 50,270 | ||||||||||||||
Regulatory assets | 44,736 | 4,855 | 5,109 | — | — | 54,700 | |||||||||||||||
Total current assets | 491,713 | 87,146 | 99,758 | 101 | (24,025 | ) | 654,693 | ||||||||||||||
Other long-term assets | |||||||||||||||||||||
Regulatory assets | 395,343 | 66,004 | 59,665 | — | — | 521,012 | |||||||||||||||
Unamortized debt expense | 5,830 | 1,485 | 1,304 | — | — | 8,619 | |||||||||||||||
Other | 42,203 | 11,889 | 13,799 | — | — | 67,891 | |||||||||||||||
Total other long-term assets | 443,376 | 79,378 | 74,768 | — | — | 597,522 | |||||||||||||||
Total assets | $ | 4,120,102 | 878,835 | 782,915 | 101 | (556,791 | ) | $ | 5,225,162 | ||||||||||||
Capitalization and liabilities | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||
Common stock equity | $ | 1,635,751 | 279,388 | 253,277 | 101 | (532,766 | ) | $ | 1,635,751 | ||||||||||||
Cumulative preferred stock—not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | |||||||||||||||
Long-term debt, net | 830,546 | 190,000 | 186,000 | — | — | 1,206,546 | |||||||||||||||
Total capitalization | 2,488,590 | 476,388 | 444,277 | 101 | (532,766 | ) | 2,876,590 | ||||||||||||||
Current liabilities | |||||||||||||||||||||
Current portion of long-term debt | — | 11,400 | — | — | — | 11,400 | |||||||||||||||
Short-term borrowings from non-affiliates | 84,987 | — | — | — | — | 84,987 | |||||||||||||||
Short-term borrowings from affiliate | — | 1,000 | 10,800 | — | (11,800 | ) | — | ||||||||||||||
Accounts payable | 107,108 | 27,077 | 17,793 | — | — | 151,978 | |||||||||||||||
Interest and preferred dividends payable | 16,700 | 3,772 | 3,936 | — | (7 | ) | 24,401 | ||||||||||||||
Taxes accrued | 165,787 | 35,837 | 35,090 | — | (233 | ) | 236,481 | ||||||||||||||
Regulatory liabilities | 289 | — | 239 | — | — | 528 | |||||||||||||||
Other | 46,727 | 10,596 | 17,062 | — | (11,985 | ) | 62,400 | ||||||||||||||
Total current liabilities | 421,598 | 89,682 | 84,920 | — | (24,025 | ) | 572,175 | ||||||||||||||
Deferred credits and other liabilities | |||||||||||||||||||||
Deferred income taxes | 404,144 | 84,905 | 76,450 | — | — | 565,499 | |||||||||||||||
Regulatory liabilities | 244,830 | 79,389 | 32,343 | — | — | 356,562 | |||||||||||||||
Unamortized tax credits | 49,609 | 14,914 | 14,745 | — | — | 79,268 | |||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 192,246 | 26,435 | 29,657 | — | 248,338 | ||||||||||||||||
Other | 51,790 | 13,347 | 12,782 | — | — | 77,919 | |||||||||||||||
Total deferred credits and other liabilities | 942,619 | 218,990 | 165,977 | — | — | 1,327,586 | |||||||||||||||
Contributions in aid of construction | 267,295 | 93,775 | 87,741 | — | — | 448,811 | |||||||||||||||
Total capitalization and liabilities | $ | 4,120,102 | 878,835 | 782,915 | 101 | (556,791 | ) | $ | 5,225,162 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Balance Sheet (unaudited) | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consoli- | Hawaiian Electric | |||||||||||||||
subsidiaries | dating | Consolidated | |||||||||||||||||||
adjustments | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||
Utility property, plant and equipment | |||||||||||||||||||||
Land | $ | 43,407 | 5,460 | 3,016 | — | — | $ | 51,883 | |||||||||||||
Plant and equipment | 3,558,569 | 1,136,923 | 1,006,383 | — | — | 5,701,875 | |||||||||||||||
Less accumulated depreciation | (1,222,129 | ) | (453,721 | ) | (435,379 | ) | — | — | (2,111,229 | ) | |||||||||||
Construction in progress | 124,494 | 7,709 | 11,030 | — | — | 143,233 | |||||||||||||||
Utility property, plant and equipment, net | 2,504,341 | 696,371 | 585,050 | — | — | 3,785,762 | |||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation | 4,953 | 82 | 1,532 | — | — | 6,567 | |||||||||||||||
Total property, plant and equipment, net | 2,509,294 | 696,453 | 586,582 | — | — | 3,792,329 | |||||||||||||||
Investment in wholly owned subsidiaries, at equity | 523,674 | — | — | — | (523,674 | ) | — | ||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 61,245 | 1,326 | 153 | 101 | — | 62,825 | |||||||||||||||
Advances to affiliates | 6,839 | 1,000 | — | — | (7,839 | ) | — | ||||||||||||||
Customer accounts receivable, net | 121,282 | 28,088 | 26,078 | — | — | 175,448 | |||||||||||||||
Accrued unbilled revenues, net | 107,752 | 17,100 | 19,272 | — | — | 144,124 | |||||||||||||||
Other accounts receivable, net | 16,373 | 4,265 | 2,451 | — | (9,027 | ) | 14,062 | ||||||||||||||
Fuel oil stock, at average cost | 99,613 | 14,178 | 20,296 | — | — | 134,087 | |||||||||||||||
Materials and supplies, at average cost | 37,377 | 6,883 | 14,784 | — | — | 59,044 | |||||||||||||||
Prepayments and other | 29,798 | 8,334 | 16,140 | — | (1,415 | ) | 52,857 | ||||||||||||||
Regulatory assets | 54,979 | 6,931 | 7,828 | — | — | 69,738 | |||||||||||||||
Total current assets | 535,258 | 88,105 | 107,002 | 101 | (18,281 | ) | 712,185 | ||||||||||||||
Other long-term assets | |||||||||||||||||||||
Regulatory assets | 381,346 | 64,552 | 60,288 | — | — | 506,186 | |||||||||||||||
Unamortized debt expense | 6,051 | 1,580 | 1,372 | — | — | 9,003 | |||||||||||||||
Other | 42,163 | 11,270 | 13,993 | — | — | 67,426 | |||||||||||||||
Total other long-term assets | 429,560 | 77,402 | 75,653 | — | — | 582,615 | |||||||||||||||
Total assets | $ | 3,997,786 | 861,960 | 769,237 | 101 | (541,955 | ) | $ | 5,087,129 | ||||||||||||
Capitalization and liabilities | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||
Common stock equity | $ | 1,593,564 | 274,802 | 248,771 | 101 | (523,674 | ) | $ | 1,593,564 | ||||||||||||
Cumulative preferred stock—not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | |||||||||||||||
Long-term debt, net | 830,547 | 189,998 | 186,000 | — | — | 1,206,545 | |||||||||||||||
Total capitalization | 2,446,404 | 471,800 | 439,771 | 101 | (523,674 | ) | 2,834,402 | ||||||||||||||
Current liabilities | |||||||||||||||||||||
Current portion of long-term debt | — | 11,400 | — | — | — | 11,400 | |||||||||||||||
Short-term borrowings from affiliate | 1,000 | — | 6,839 | — | (7,839 | ) | — | ||||||||||||||
Accounts payable | 145,062 | 24,383 | 20,114 | — | — | 189,559 | |||||||||||||||
Interest and preferred dividends payable | 15,190 | 3,885 | 2,585 | — | (8 | ) | 21,652 | ||||||||||||||
Taxes accrued | 175,790 | 37,899 | 37,171 | — | (1,415 | ) | 249,445 | ||||||||||||||
Regulatory liabilities | 1,705 | — | 211 | — | — | 1,916 | |||||||||||||||
Other | 48,443 | 9,033 | 15,424 | — | (9,019 | ) | 63,881 | ||||||||||||||
Total current liabilities | 387,190 | 86,600 | 82,344 | — | (18,281 | ) | 537,853 | ||||||||||||||
Deferred credits and other liabilities | |||||||||||||||||||||
Deferred income taxes | 359,621 | 79,947 | 67,593 | — | — | 507,161 | |||||||||||||||
Regulatory liabilities | 235,786 | 76,475 | 35,122 | — | — | 347,383 | |||||||||||||||
Unamortized tax credits | 44,931 | 14,245 | 14,363 | — | — | 73,539 | |||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 202,396 | 28,427 | 31,339 | — | — | 262,162 | |||||||||||||||
Other | 63,374 | 14,703 | 13,658 | — | — | 91,735 | |||||||||||||||
Total deferred credits and other liabilities | 906,108 | 213,797 | 162,075 | — | — | 1,281,980 | |||||||||||||||
Contributions in aid of construction | 258,084 | 89,763 | 85,047 | — | — | 432,894 | |||||||||||||||
Total capitalization and liabilities | $ | 3,997,786 | 861,960 | 769,237 | 101 | (541,955 | ) | $ | 5,087,129 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Changes in Common Stock Equity (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Balance, December 31, 2013 | $ | 1,593,564 | 274,802 | 248,771 | 101 | (523,674 | ) | $ | 1,593,564 | ||||||||||||
Net income for common stock | 108,529 | 13,308 | 15,268 | — | (28,576 | ) | 108,529 | ||||||||||||||
Other comprehensive income (loss), net of taxes | 32 | (2 | ) | — | — | 2 | 32 | ||||||||||||||
Common stock dividends | (66,369 | ) | (8,720 | ) | (10,762 | ) | — | 19,482 | (66,369 | ) | |||||||||||
Common stock issuance expenses | (5 | ) | — | — | — | — | (5 | ) | |||||||||||||
Balance, September 30, 2014 | $ | 1,635,751 | 279,388 | 253,277 | 101 | (532,766 | ) | $ | 1,635,751 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Changes in Common Stock Equity (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Balance, December 31, 2012 | $ | 1,472,136 | 268,908 | 228,927 | 104 | (497,939 | ) | $ | 1,472,136 | ||||||||||||
Net income (loss) for common stock | 90,939 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | 90,939 | |||||||||||||
Other comprehensive income (loss), net of taxes | 52 | (2 | ) | — | — | 2 | 52 | ||||||||||||||
Common stock dividends | (61,183 | ) | (10,790 | ) | (10,513 | ) | — | 21,303 | (61,183 | ) | |||||||||||
Balance, September 30, 2013 | $ | 1,501,944 | 272,860 | 234,118 | 102 | (507,080 | ) | $ | 1,501,944 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Cash Flows (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income | $ | 109,339 | 13,708 | 15,554 | — | (28,576 | ) | $ | 110,025 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||
Equity in earnings of subsidiaries | (28,651 | ) | — | — | — | 28,576 | (75 | ) | |||||||||||||
Common stock dividends received from subsidiaries | 19,557 | — | — | — | (19,482 | ) | 75 | ||||||||||||||
Depreciation of property, plant and equipment | 81,903 | 26,926 | 15,961 | — | — | 124,790 | |||||||||||||||
Other amortization | 765 | 1,950 | 1,947 | — | — | 4,662 | |||||||||||||||
Increase in deferred income taxes | 52,274 | 5,146 | 9,972 | — | — | 67,392 | |||||||||||||||
Change in tax credits, net | 4,725 | 687 | 404 | — | — | 5,816 | |||||||||||||||
Allowance for equity funds used during construction | (4,557 | ) | (328 | ) | (48 | ) | — | — | (4,933 | ) | |||||||||||
Change in cash overdraft | — | — | (1,038 | ) | — | — | (1,038 | ) | |||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Increase in accounts receivable | (17,540 | ) | (4,714 | ) | (442 | ) | — | 2,965 | (19,731 | ) | |||||||||||
Decrease (increase) in accrued unbilled revenues | (554 | ) | 626 | 899 | — | — | 971 | ||||||||||||||
Decrease in fuel oil stock | 11,328 | 219 | 4,237 | — | — | 15,784 | |||||||||||||||
Decrease (increase) in materials and supplies | 875 | (987 | ) | (1,483 | ) | — | — | (1,595 | ) | ||||||||||||
Decrease (increase) in regulatory assets | (15,159 | ) | (2,594 | ) | 222 | — | — | (17,531 | ) | ||||||||||||
Decrease in accounts payable | (70,916 | ) | (1,807 | ) | (5,170 | ) | — | — | (77,893 | ) | |||||||||||
Change in prepaid and accrued income and utility revenue taxes | (18,131 | ) | (1,310 | ) | 1,366 | — | — | (18,075 | ) | ||||||||||||
Decrease in defined benefit pension and other postretirement benefit plans liability | (422 | ) | — | (326 | ) | — | — | (748 | ) | ||||||||||||
Change in other assets and liabilities | (31,754 | ) | (3,886 | ) | (3,024 | ) | — | (2,965 | ) | (41,629 | ) | ||||||||||
Net cash provided by operating activities | 93,082 | 33,636 | 39,031 | — | (19,482 | ) | 146,267 | ||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Capital expenditures | (163,333 | ) | (33,212 | ) | (32,560 | ) | — | — | (229,105 | ) | |||||||||||
Contributions in aid of construction | 12,352 | 6,229 | 3,159 | — | — | 21,740 | |||||||||||||||
Advances from (to) affiliates | (4,961 | ) | 1,000 | — | — | 3,961 | — | ||||||||||||||
Net cash used in investing activities | (155,942 | ) | (25,983 | ) | (29,401 | ) | — | 3,961 | (207,365 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Common stock dividends | (66,369 | ) | (8,720 | ) | (10,762 | ) | — | 19,482 | (66,369 | ) | |||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (810 | ) | (400 | ) | (286 | ) | — | — | (1,496 | ) | |||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 83,987 | 1,000 | 3,961 | — | (3,961 | ) | 84,987 | ||||||||||||||
Other | (337 | ) | (50 | ) | (75 | ) | — | — | (462 | ) | |||||||||||
Net cash provided by (used in) financing activities | 16,471 | (8,170 | ) | (7,162 | ) | — | 15,521 | 16,660 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (46,389 | ) | (517 | ) | 2,468 | — | — | (44,438 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 61,245 | 1,326 | 153 | 101 | — | 62,825 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 14,856 | 809 | 2,621 | 101 | — | $ | 18,387 | |||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Cash Flows (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income (loss) | $ | 91,749 | 15,144 | 15,990 | (2 | ) | (30,446 | ) | $ | 92,435 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||||||
Equity in earnings of subsidiaries | (30,522 | ) | — | — | — | 30,446 | (76 | ) | |||||||||||||
Common stock dividends received from subsidiaries | 21,379 | — | — | — | (21,303 | ) | 76 | ||||||||||||||
Depreciation of property, plant and equipment | 75,150 | 25,641 | 15,074 | — | — | 115,865 | |||||||||||||||
Other amortization | (228 | ) | 1,075 | 1,623 | — | — | 2,470 | ||||||||||||||
Increase in deferred income taxes | 31,361 | 7,165 | 9,488 | — | — | 48,014 | |||||||||||||||
Change in tax credits, net | 3,773 | 119 | 618 | — | — | 4,510 | |||||||||||||||
Allowance for equity funds used during construction | (3,144 | ) | (552 | ) | (334 | ) | — | — | (4,030 | ) | |||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Decrease (increase) in accounts receivable | 37,894 | (2,552 | ) | 3,999 | — | 2,736 | 42,077 | ||||||||||||||
Decrease (increase) in accrued unbilled revenues | (4,381 | ) | (1,727 | ) | 505 | — | — | (5,603 | ) | ||||||||||||
Decrease in fuel oil stock | 17,945 | 870 | 5,517 | — | — | 24,332 | |||||||||||||||
Increase in materials and supplies | (5,392 | ) | (1,706 | ) | (1,251 | ) | — | — | (8,349 | ) | |||||||||||
Increase in regulatory assets | (37,032 | ) | (7,165 | ) | (9,117 | ) | — | — | (53,314 | ) | |||||||||||
Decrease in accounts payable | (10,435 | ) | (3,343 | ) | (9,196 | ) | — | — | (22,974 | ) | |||||||||||
Change in prepaid and accrued income and utility revenue taxes | (7,122 | ) | (3,566 | ) | (4,728 | ) | — | — | (15,416 | ) | |||||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 1,744 | (191 | ) | (65 | ) | — | — | 1,488 | |||||||||||||
Change in other assets and liabilities | (10,562 | ) | (1,821 | ) | 4,924 | — | (2,736 | ) | (10,195 | ) | |||||||||||
Net cash provided by (used in) operating activities | 172,177 | 27,391 | 33,047 | (2 | ) | (21,303 | ) | 211,310 | |||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Capital expenditures | (164,423 | ) | (35,900 | ) | (37,546 | ) | — | — | (237,869 | ) | |||||||||||
Contributions in aid of construction | 15,699 | 6,160 | 1,774 | — | — | 23,633 | |||||||||||||||
Other | 623 | (196 | ) | — | — | 427 | |||||||||||||||
Advances from (to) affiliates | (13,600 | ) | 11,050 | — | — | 2,550 | — | ||||||||||||||
Net cash used in investing activities | (161,701 | ) | (18,886 | ) | (35,772 | ) | — | 2,550 | (213,809 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Common stock dividends | (61,183 | ) | (10,790 | ) | (10,513 | ) | — | 21,303 | (61,183 | ) | |||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (810 | ) | (400 | ) | (286 | ) | — | — | (1,496 | ) | |||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 62,196 | — | 13,600 | — | (2,550 | ) | 73,246 | ||||||||||||||
Other | (38 | ) | (2 | ) | (2 | ) | — | — | (42 | ) | |||||||||||
Net cash provided by (used in) financing activities | 165 | (11,192 | ) | 2,799 | — | 18,753 | 10,525 | ||||||||||||||
Net decrease in cash and cash equivalents | 10,641 | (2,687 | ) | 74 | (2 | ) | — | 8,026 | |||||||||||||
Cash and cash equivalents, beginning of period | 8,265 | 5,441 | 3,349 | 104 | — | 17,159 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 18,906 | 2,754 | 3,423 | 102 | — | $ | 25,185 | |||||||||||||
Bank_segment
Bank segment | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Bank subsidiary | ' | ||||||||||||||||||||||||||||||||||||||||
Bank segment | ' | ||||||||||||||||||||||||||||||||||||||||
Bank segment | |||||||||||||||||||||||||||||||||||||||||
Selected financial information | |||||||||||||||||||||||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||||||||||||||||||||||
Statements of Income Data | |||||||||||||||||||||||||||||||||||||||||
Three months | Nine months | ||||||||||||||||||||||||||||||||||||||||
ended September 30 | ended September 30 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Interest and dividend income | |||||||||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 45,532 | $ | 43,337 | $ | 133,065 | $ | 129,564 | |||||||||||||||||||||||||||||||||
Interest and dividends on investment and mortgage-related securities | 2,773 | 3,025 | 8,758 | 9,723 | |||||||||||||||||||||||||||||||||||||
Total interest and dividend income | 48,305 | 46,362 | 141,823 | 139,287 | |||||||||||||||||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||||||||||||||
Interest on deposit liabilities | 1,312 | 1,262 | 3,774 | 3,870 | |||||||||||||||||||||||||||||||||||||
Interest on other borrowings | 1,438 | 1,206 | 4,263 | 3,548 | |||||||||||||||||||||||||||||||||||||
Total interest expense | 2,750 | 2,468 | 8,037 | 7,418 | |||||||||||||||||||||||||||||||||||||
Net interest income | 45,555 | 43,894 | 133,786 | 131,869 | |||||||||||||||||||||||||||||||||||||
Provision for loan losses | 1,550 | 54 | 3,566 | 953 | |||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 44,005 | 43,840 | 130,220 | 130,916 | |||||||||||||||||||||||||||||||||||||
Noninterest income | |||||||||||||||||||||||||||||||||||||||||
Fees from other financial services | 5,642 | 5,728 | 15,987 | 21,367 | |||||||||||||||||||||||||||||||||||||
Fee income on deposit liabilities | 5,109 | 4,819 | 14,175 | 13,566 | |||||||||||||||||||||||||||||||||||||
Fee income on other financial products | 1,971 | 2,714 | 6,325 | 6,288 | |||||||||||||||||||||||||||||||||||||
Mortgage banking income | 875 | 1,547 | 1,749 | 6,896 | |||||||||||||||||||||||||||||||||||||
Gain on sale of securities | — | — | 2,847 | 1,226 | |||||||||||||||||||||||||||||||||||||
Other income, net | 1,634 | 3,888 | 4,865 | 7,211 | |||||||||||||||||||||||||||||||||||||
Total noninterest income | 15,231 | 18,696 | 45,948 | 56,554 | |||||||||||||||||||||||||||||||||||||
Noninterest expense | |||||||||||||||||||||||||||||||||||||||||
Compensation and employee benefits | 19,892 | 20,564 | 60,050 | 60,715 | |||||||||||||||||||||||||||||||||||||
Occupancy | 4,517 | 4,208 | 12,959 | 12,550 | |||||||||||||||||||||||||||||||||||||
Data processing | 2,684 | 2,168 | 8,715 | 7,982 | |||||||||||||||||||||||||||||||||||||
Services | 2,580 | 2,424 | 7,708 | 6,855 | |||||||||||||||||||||||||||||||||||||
Equipment | 1,672 | 1,825 | 4,926 | 5,469 | |||||||||||||||||||||||||||||||||||||
Office supplies, printing and postage | 1,415 | 907 | 4,487 | 2,806 | |||||||||||||||||||||||||||||||||||||
Marketing | 948 | 692 | 2,690 | 2,054 | |||||||||||||||||||||||||||||||||||||
Communication | 412 | 479 | 1,363 | 1,374 | |||||||||||||||||||||||||||||||||||||
Other expense | 5,544 | 6,461 | 15,026 | 18,400 | |||||||||||||||||||||||||||||||||||||
Total noninterest expense | 39,664 | 39,728 | 117,924 | 118,205 | |||||||||||||||||||||||||||||||||||||
Income before income taxes | 19,572 | 22,808 | 58,244 | 69,265 | |||||||||||||||||||||||||||||||||||||
Income taxes | 6,312 | 7,532 | 18,769 | 23,915 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 13,260 | $ | 15,276 | $ | 39,475 | $ | 45,350 | |||||||||||||||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||||||||||||||||||||||
Statements of Comprehensive Income Data | |||||||||||||||||||||||||||||||||||||||||
Three months | Nine months | ||||||||||||||||||||||||||||||||||||||||
ended September 30 | ended September 30 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 13,260 | $ | 15,276 | $ | 39,475 | $ | 45,350 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities: | |||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities arising during the period, net of (taxes) tax benefits of $1,094, $1,049, ($2,249) and $7,081 for the respective periods | (1,657 | ) | (1,589 | ) | 3,406 | (10,724 | ) | ||||||||||||||||||||||||||||||||||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of nil, nil, $1,132 and $488 for the respective periods | — | — | (1,715 | ) | (738 | ) | |||||||||||||||||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||||||||||||||||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $138, $278, $424 and $2,010 for the respective periods | 208 | 420 | 642 | 3,043 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | (1,449 | ) | (1,169 | ) | 2,333 | (8,419 | ) | ||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 11,811 | $ | 14,107 | $ | 41,808 | $ | 36,931 | |||||||||||||||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||||||||||||||||||||||
Balance Sheets Data | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | 30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 98,879 | $ | 108,998 | |||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 74,654 | 47,605 | |||||||||||||||||||||||||||||||||||||||
Available-for-sale investment and mortgage-related securities | 531,603 | 529,007 | |||||||||||||||||||||||||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 75,063 | 92,546 | |||||||||||||||||||||||||||||||||||||||
Loans receivable held for investment | 4,335,421 | 4,150,229 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (43,461 | ) | (40,116 | ) | |||||||||||||||||||||||||||||||||||||
Loans receivable held for investment, net | 4,291,960 | 4,110,113 | |||||||||||||||||||||||||||||||||||||||
Loans held for sale, at lower of cost or fair value | 2,328 | 5,302 | |||||||||||||||||||||||||||||||||||||||
Other | 285,659 | 268,063 | |||||||||||||||||||||||||||||||||||||||
Goodwill | 82,190 | 82,190 | |||||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,442,336 | $ | 5,243,824 | |||||||||||||||||||||||||||||||||||||
Liabilities and shareholder’s equity | |||||||||||||||||||||||||||||||||||||||||
Deposit liabilities—noninterest-bearing | $ | 1,298,726 | $ | 1,214,418 | |||||||||||||||||||||||||||||||||||||
Deposit liabilities—interest-bearing | 3,235,071 | 3,158,059 | |||||||||||||||||||||||||||||||||||||||
Other borrowings | 263,204 | 244,514 | |||||||||||||||||||||||||||||||||||||||
Other | 107,814 | 105,679 | |||||||||||||||||||||||||||||||||||||||
Total liabilities | 4,904,815 | 4,722,670 | |||||||||||||||||||||||||||||||||||||||
Commitments and contingencies (see “Litigation” section) | |||||||||||||||||||||||||||||||||||||||||
Common stock | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Additional paid in capital | 337,862 | 336,053 | |||||||||||||||||||||||||||||||||||||||
Retained earnings | 209,522 | 197,297 | |||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax benefits | |||||||||||||||||||||||||||||||||||||||||
Net unrealized losses on securities | $ | (1,972 | ) | $ | (3,663 | ) | |||||||||||||||||||||||||||||||||||
Retirement benefit plans | (7,892 | ) | (9,864 | ) | (8,534 | ) | (12,197 | ) | |||||||||||||||||||||||||||||||||
Total shareholder’s equity | 537,521 | 521,154 | |||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholder’s equity | $ | 5,442,336 | $ | 5,243,824 | |||||||||||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||||||||||||||
Bank-owned life insurance | $ | 133,066 | $ | 129,963 | |||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 70,105 | 67,766 | |||||||||||||||||||||||||||||||||||||||
Prepaid expenses | 3,941 | 3,616 | |||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 13,436 | 13,133 | |||||||||||||||||||||||||||||||||||||||
Mortgage-servicing rights | 11,524 | 11,687 | |||||||||||||||||||||||||||||||||||||||
Low-income housing equity investments | 22,825 | 14,543 | |||||||||||||||||||||||||||||||||||||||
Real estate acquired in settlement of loans, net | 580 | 1,205 | |||||||||||||||||||||||||||||||||||||||
Other | 30,182 | 26,150 | |||||||||||||||||||||||||||||||||||||||
$ | 285,659 | $ | 268,063 | ||||||||||||||||||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||||||||||
Accrued expenses | $ | 24,733 | $ | 19,989 | |||||||||||||||||||||||||||||||||||||
Federal and state income taxes payable | 35,096 | 37,807 | |||||||||||||||||||||||||||||||||||||||
Cashier’s checks | 23,754 | 21,110 | |||||||||||||||||||||||||||||||||||||||
Advance payments by borrowers | 5,013 | 9,647 | |||||||||||||||||||||||||||||||||||||||
Other | 19,218 | 17,126 | |||||||||||||||||||||||||||||||||||||||
$ | 107,814 | $ | 105,679 | ||||||||||||||||||||||||||||||||||||||
Bank-owned life insurance is life insurance purchased by ASB on the lives of certain key employees, with ASB as the beneficiary. The insurance is used to fund employee benefits through tax-free income from increases in the cash value of the policies and insurance proceeds paid to ASB upon an insured’s death. | |||||||||||||||||||||||||||||||||||||||||
ASB invests, as a limited partner, in Low-Income Housing Tax Credit (LIHTC) investment partnerships formed for the purpose of providing funding for affordable multifamily rental properties. These properties are rented to qualified low-income tenants, pursuant to Section 42 of the Internal Revenue Code, allowing the properties to be eligible for federal and, for some properties, state tax credits. ASB realizes a return on its investment through reductions in income tax expense that result from tax credits and the deductibility of the operating losses of these partnerships. The partnership agreements are typically structured to meet a required 15-year period of occupancy by qualified low-income tenants. ASB’s maximum exposure to loss is equal to its legally binding equity commitments adjusted for recorded impairment, partnership results, and/or proportional amortization for qualifying low income housing tax credit investments, where applicable. | |||||||||||||||||||||||||||||||||||||||||
Other borrowings consisted of securities sold under agreements to repurchase and advances from the Federal Home Loan Bank (FHLB) of Seattle of $153 million and $110 million, respectively, as of September 30, 2014 and $145 million and $100 million, respectively, as of December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||
Investment and mortgage-related securities portfolio. | |||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities. The book value (amortized cost), gross unrealized gains and losses, estimated fair value and gross unrealized losses (fair value and amount by duration of time in which positions have been held in a continuous loss position) for securities held in ASB’s “available-for-sale” portfolio by major security type were as follows: | |||||||||||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair | Gross unrealized losses | |||||||||||||||||||||||||||||||||||||
value | Less than 12 months | 12 months or longer | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Fair value | Amount | Fair value | Amount | |||||||||||||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency obligations | $ | 107,072 | $ | 631 | $ | (1,407 | ) | $ | 106,296 | $ | 29,628 | $ | (137 | ) | $ | 29,168 | $ | (1,270 | ) | ||||||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA | 427,804 | 5,327 | (7,824 | ) | 425,307 | 89,402 | (910 | ) | 148,544 | (6,914 | ) | ||||||||||||||||||||||||||||||
Municipal bonds | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
$ | 534,876 | $ | 5,958 | $ | (9,231 | ) | $ | 531,603 | $ | 119,030 | $ | (1,047 | ) | $ | 177,712 | $ | (8,184 | ) | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Federal agency obligations | $ | 83,193 | $ | 174 | $ | (2,394 | ) | $ | 80,973 | $ | 70,799 | $ | (2,394 | ) | $ | — | $ | — | |||||||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA | 374,993 | 4,911 | (10,460 | ) | 369,444 | 228,543 | (8,819 | ) | 19,655 | (1,641 | ) | ||||||||||||||||||||||||||||||
Municipal bonds | 76,904 | 1,826 | (140 | ) | 78,590 | 14,478 | (140 | ) | — | — | |||||||||||||||||||||||||||||||
$ | 535,090 | $ | 6,911 | $ | (12,994 | ) | $ | 529,007 | $ | 313,820 | $ | (11,353 | ) | $ | 19,655 | $ | (1,641 | ) | |||||||||||||||||||||||
The unrealized losses on ASB’s investments in mortgage-related securities and obligations issued by federal agencies were caused by interest rate movements. Because ASB does not intend to sell the securities and has determined it is more likely than not that it will not be required to sell the investments before recovery of their amortized cost basis, which may be at maturity, ASB did not consider these investments to be other-than-temporarily impaired at September 30, 2014. | |||||||||||||||||||||||||||||||||||||||||
The fair values of ASB’s investment securities could decline if interest rates rise or spreads widen. | |||||||||||||||||||||||||||||||||||||||||
The following table details the contractual maturities of available-for-sale securities. All positions with variable maturities (e.g. callable debentures and mortgage-related securities) are disclosed based upon the bond’s contractual maturity. Actual maturities will likely differ from these contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. | |||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | Amortized cost | Fair value | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||
Due after one year through five years | 44,498 | 44,419 | |||||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 37,332 | 37,641 | |||||||||||||||||||||||||||||||||||||||
Due after ten years | 25,242 | 24,236 | |||||||||||||||||||||||||||||||||||||||
107,072 | 106,296 | ||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities-FNMA,FHLMC and GNMA | 427,804 | 425,307 | |||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 534,876 | $ | 531,603 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses. ASB maintains an allowance for loan losses that it believes is adequate to absorb losses inherent in its loan portfolio. The level of allowance for loan losses is based on a continuing assessment of existing risks in the loan portfolio, historical loss experience, changes in collateral values and current conditions (e.g., economic conditions, real estate market conditions and interest rate environment). The allowance for loan losses is allocated to loan types using both a formula-based approach applied to groups of loans and an analysis of certain individual loans for impairment. The formula-based approach emphasizes loss factors primarily derived from actual historical default and loss rates, which are combined with an assessment of certain qualitative factors to determine the allowance amounts allocated to the various loan categories. Adverse changes in any of these factors could result in higher charge-offs and provision for loan losses. | |||||||||||||||||||||||||||||||||||||||||
ASB disaggregates its portfolio loans into portfolio segments for purposes of determining the allowance for loan losses. Commercial and commercial real estate loans are defined as non-homogeneous loans and ASB utilizes a risk rating system for evaluating the credit quality of the loans. Loans are rated based on the degree of risk at origination and periodically thereafter, as appropriate. Values are applied separately to the probability of default (borrower risk) and loss given default (transaction risk). ASB’s credit review department performs an evaluation of these loan portfolios to ensure compliance with the internal risk rating system and timeliness of rating changes. Non-homogeneous loans are categorized into the regulatory asset quality classifications—Pass, Special Mention, Substandard, Doubtful, and Loss based on credit quality. For loans classified as substandard, an analysis is done to determine if the loan is impaired. A loan is deemed impaired when it is probable that ASB will be unable to collect all amounts due according to the contractual terms of the loan agreement. Once a loan is deemed impaired, ASB applies a valuation methodology to determine whether there is an impairment shortfall. The measurement of impairment may be based on (i) the present value of the expected future cash flows of the impaired loan discounted at the loan’s original effective interest rate, (ii) the observable market price of the impaired loan, or (iii) the fair value of the collateral, net of costs to sell. For all loans collateralized by real estate whose repayment is dependent on the sale of the underlying collateral property, ASB measures impairment by utilizing the fair value of the collateral, net of costs to sell; for other loans that are not considered collateral dependent, generally the discounted cash flow method is used to measure impairment. For loans collateralized by real estate that are classified as troubled debt restructured loans, the present value of the expected future cash flows of the loans may also be used to measure impairment as these loans are expected to perform according to their restructured terms. Impairment shortfalls are charged to the provision for loan losses and included in the allowance for loan losses. However, impairment shortfalls that are deemed to be confirmed losses (uncollectible) are charged off, with the loan written down by the amount of the confirmed loss. | |||||||||||||||||||||||||||||||||||||||||
Residential, consumer and credit scored business loans are considered homogeneous loans, which are typically underwritten based on common, uniform standards, and are generally classified as to the level of loss exposure based on delinquency status. The homogeneous loan portfolios are stratified into individual products with common risk characteristics and segmented into various secured and unsecured loan product types. For the homogeneous portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. ASB does supplement performance data with an 11-risk rating retail credit model that assigns a probability of default to each borrower based primarily on the borrower's current Fair Isaac Corporation (FICO) score and for the home equity line of credit (HELOC) and unsecured consumer products, the bankruptcy score (BK). Current FICO and BK data is purchased and appended to all homogeneous loans on a quarterly basis and used to estimate the borrower’s probability of default and the loss given default. | |||||||||||||||||||||||||||||||||||||||||
ASB also considers the following qualitative factors for all loans in estimating the allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
• | changes in lending policies and procedures; | ||||||||||||||||||||||||||||||||||||||||
• | changes in economic and business conditions and developments that affect the collectability of the portfolio; | ||||||||||||||||||||||||||||||||||||||||
• | changes in the nature, volume and terms of the loan portfolio; | ||||||||||||||||||||||||||||||||||||||||
• | changes in lending management and other relevant staff; | ||||||||||||||||||||||||||||||||||||||||
• | changes in loan quality (past due, non-accrual, classified loans); | ||||||||||||||||||||||||||||||||||||||||
• | changes in the quality of the loan review system; | ||||||||||||||||||||||||||||||||||||||||
• | changes in the value of underlying collateral; | ||||||||||||||||||||||||||||||||||||||||
• | effect of, and changes in the level of, any concentrations of credit; and | ||||||||||||||||||||||||||||||||||||||||
• | effect of other external and internal factors. | ||||||||||||||||||||||||||||||||||||||||
ASB’s methodology for determining the allowance for loan losses was generally based on historic loss rates using various look-back periods. During the second quarter of 2014, ASB implemented enhancements to the loss rate calculation for estimating the allowance for loan losses that included several refinements to determining the probability of default and the loss given default for the various segments of the loan portfolio that are more statistically sound than those previously employed. The result is an estimated loss rate established for each borrower. ASB also updated its measurement of the loss emergence period in the calculation of the allowance for loan losses. The loss emergence period is broadly defined as the period that it takes, on average, for the lender to identify the specific borrower and amount of loss incurred by the bank for a loan that has suffered from a loss-causing event. In most cases, the loss emergence period was within a twelve month period; however, as credit quality and conditions improve, management has observed that the loss emergence period has extended and has incorporated this observed change in the estimate of the allowance for loan losses. Management believes these enhancements will improve the precision in estimating the allowance for loan losses. The enhancement did not have a material effect on the total allowance for loan losses or the provision for loan losses for the second quarter 2014. The enhancement did result in the full allocation of the previously unallocated portion of the allowance for loan losses. | |||||||||||||||||||||||||||||||||||||||||
In conjunction with the above enhancement, management also adopted an enhanced risk rating system for monitoring and managing credit risk in the non-homogenous loan portfolios, that measures general creditworthiness at the borrower level. The numerical-based, risk rating “PD Model” takes into consideration fiscal year-end financial information of the borrower and identified financial attributes including retained earnings, operating cash flows, interest coverage, liquidity and leverage that demonstrate a strong correlation with default to assign default probabilities at the borrower level. In addition, a loss given default (LGD) value is assigned to each loan to measure loss in the event of default based on loan specific features such as collateral that mitigates the amount of loss in the event of default. Together the PD Model and LGD construct provide a more quantitative, data driven and consistent framework for measuring risk within the portfolio, on a loan by loan basis and for the ultimate collectability of each loan. Management believes its allowance for loan losses adequately estimates actual loan losses that will ultimately be incurred. However, such estimates are based on currently available information and historical experience, and future adjustments may be required from time to time to the allowance for loan losses based on new information and changes that occur (e.g., due to changes in economic conditions, particularly in Hawaii). Actual losses could differ from management’s estimates, and these differences and subsequent adjustments could be material. | |||||||||||||||||||||||||||||||||||||||||
The allowance for loan losses (balances and changes) and financing receivables were as follows: | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | Residential | Commercial real | Home | Residential land | Commercial construction | Residential construction | Commercial loans | Consumer loans | Unallocated | Total | |||||||||||||||||||||||||||||||
1-4 family | estate | equity line of credit | |||||||||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,667 | $ | 7,230 | $ | 7,081 | $ | 1,837 | $ | 3,390 | $ | 26 | $ | 15,144 | $ | 1,997 | $ | — | $ | 42,372 | |||||||||||||||||||||
Charge-offs | (632 | ) | — | (46 | ) | (28 | ) | — | — | (886 | ) | (592 | ) | — | (2,184 | ) | |||||||||||||||||||||||||
Recoveries | 160 | — | 299 | 90 | — | — | 952 | 222 | — | 1,723 | |||||||||||||||||||||||||||||||
Provision | 670 | 3 | (119 | ) | (92 | ) | 1,724 | 3 | (1,130 | ) | 491 | — | 1,550 | ||||||||||||||||||||||||||||
Ending balance | $ | 5,865 | $ | 7,233 | $ | 7,215 | $ | 1,807 | $ | 5,114 | $ | 29 | $ | 14,080 | $ | 2,118 | $ | — | $ | 43,461 | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,357 | $ | 4,117 | $ | 5,009 | $ | 2,187 | $ | 2,305 | $ | 14 | $ | 16,307 | $ | 2,399 | $ | 2,309 | $ | 41,004 | |||||||||||||||||||||
Charge-offs | (106 | ) | — | (44 | ) | (3 | ) | — | — | (305 | ) | (407 | ) | — | (865 | ) | |||||||||||||||||||||||||
Recoveries | 157 | — | 78 | 282 | — | — | 166 | 176 | — | 859 | |||||||||||||||||||||||||||||||
Provision | (604 | ) | 204 | 12 | (361 | ) | 44 | 2 | (361 | ) | 42 | 1,076 | 54 | ||||||||||||||||||||||||||||
Ending balance | $ | 5,804 | $ | 4,321 | $ | 5,055 | $ | 2,105 | $ | 2,349 | $ | 16 | $ | 15,807 | $ | 2,210 | $ | 3,385 | $ | 41,052 | |||||||||||||||||||||
Nine months ended | |||||||||||||||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,534 | $ | 5,059 | $ | 5,229 | $ | 1,817 | $ | 2,397 | $ | 19 | $ | 15,803 | $ | 2,367 | $ | 1,891 | $ | 40,116 | |||||||||||||||||||||
Charge-offs | (992 | ) | — | (182 | ) | (81 | ) | — | — | (1,256 | ) | (1,614 | ) | — | (4,125 | ) | |||||||||||||||||||||||||
Recoveries | 1,056 | — | 624 | 253 | — | — | 1,277 | 694 | — | 3,904 | |||||||||||||||||||||||||||||||
Provision | 267 | 2,174 | 1,544 | (182 | ) | 2,717 | 10 | (1,744 | ) | 671 | (1,891 | ) | 3,566 | ||||||||||||||||||||||||||||
Ending balance | $ | 5,865 | $ | 7,233 | $ | 7,215 | $ | 1,807 | $ | 5,114 | $ | 29 | $ | 14,080 | $ | 2,118 | $ | — | $ | 43,461 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 917 | $ | 4 | $ | 8 | $ | 1,171 | $ | — | $ | — | $ | 810 | $ | 5 | $ | — | $ | 2,915 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 4,948 | $ | 7,229 | $ | 7,207 | $ | 636 | $ | 5,114 | $ | 29 | $ | 13,270 | $ | 2,113 | $ | — | $ | 40,546 | |||||||||||||||||||||
Financing Receivables: | |||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,030,337 | $ | 502,356 | $ | 808,991 | $ | 16,935 | $ | 87,461 | $ | 18,699 | $ | 770,079 | $ | 107,531 | $ | — | $ | 4,342,389 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 20,015 | $ | 754 | $ | 392 | $ | 8,872 | $ | — | $ | — | $ | 15,058 | $ | 16 | $ | — | $ | 45,107 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 2,010,322 | $ | 501,602 | $ | 808,599 | $ | 8,063 | $ | 87,461 | $ | 18,699 | $ | 755,021 | $ | 107,515 | $ | — | $ | 4,297,282 | |||||||||||||||||||||
Nine months ended | |||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,068 | $ | 2,965 | $ | 4,493 | $ | 4,275 | $ | 2,023 | $ | 9 | $ | 15,931 | $ | 4,019 | $ | 2,202 | $ | 41,985 | |||||||||||||||||||||
Charge-offs | (1,162 | ) | — | (782 | ) | (238 | ) | — | — | (1,655 | ) | (1,811 | ) | — | (5,648 | ) | |||||||||||||||||||||||||
Recoveries | 1,382 | — | 334 | 782 | — | — | 778 | 486 | — | 3,762 | |||||||||||||||||||||||||||||||
Provision | (484 | ) | 1,356 | 1,010 | (2,714 | ) | 326 | 7 | 753 | (484 | ) | 1,183 | 953 | ||||||||||||||||||||||||||||
Ending balance | $ | 5,804 | $ | 4,321 | $ | 5,055 | $ | 2,105 | $ | 2,349 | $ | 16 | $ | 15,807 | $ | 2,210 | $ | 3,385 | $ | 41,052 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 944 | $ | 888 | $ | — | $ | 1,585 | $ | — | $ | — | $ | 2,679 | $ | — | $ | — | $ | 6,096 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 4,860 | $ | 3,433 | $ | 5,055 | $ | 520 | $ | 2,349 | $ | 16 | $ | 13,128 | $ | 2,210 | $ | 3,385 | $ | 34,956 | |||||||||||||||||||||
Financing Receivables: | 0 | ||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,015,082 | $ | 405,037 | $ | 703,210 | $ | 18,400 | $ | 51,067 | $ | 10,460 | $ | 749,733 | $ | 102,400 | $ | — | $ | 4,055,389 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 22,123 | $ | 4,484 | $ | 960 | $ | 12,747 | $ | — | $ | — | $ | 22,777 | $ | 19 | $ | — | $ | 63,110 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,992,959 | $ | 400,553 | $ | 702,250 | $ | 5,653 | $ | 51,067 | $ | 10,460 | $ | 726,956 | $ | 102,381 | $ | — | $ | 3,992,279 | |||||||||||||||||||||
Credit quality. ASB performs an internal loan review and grading on an ongoing basis. The review provides management with periodic information as to the quality of the loan portfolio and effectiveness of its lending policies and procedures. The objectives of the loan review and grading procedures are to identify, in a timely manner, existing or emerging credit trends so that appropriate steps can be initiated to manage risk and avoid or minimize future losses. Loans subject to grading include commercial and industrial, commercial real estate and commercial construction loans. | |||||||||||||||||||||||||||||||||||||||||
Each loan is assigned an Asset Quality Rating (AQR) reflecting the likelihood of repayment or orderly liquidation of that loan transaction pursuant to regulatory credit classifications: Pass, Special Mention, Substandard, Doubtful, and Loss. The AQR is a function of the PD Model rating, the LGD, and possible non-model factors which impact the ultimate collectability of the loan such as character of the business owner/guarantor, interim period performance, litigation, tax liens, and major changes in business and economic conditions. Pass exposures generally are well protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral. Special Mention loans have potential weaknesses that, if left uncorrected, could jeopardize the liquidation of the debt. Substandard loans have well-defined weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the Bank may sustain some loss. An asset classified Doubtful has the weaknesses of those classified Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. An asset classified Loss is considered uncollectible. | |||||||||||||||||||||||||||||||||||||||||
The credit risk profile by internally assigned grade for loans was as follows: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | |||||||||||||||||||||||||||||||||||
real estate | construction | real estate | construction | ||||||||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | 444,723 | $ | 70,335 | $ | 715,284 | $ | 375,217 | $ | 52,112 | $ | 703,053 | |||||||||||||||||||||||||||||
Special mention | 18,199 | — | 8,500 | 33,436 | — | 17,634 | |||||||||||||||||||||||||||||||||||
Substandard | 39,434 | 17,126 | 45,101 | 28,020 | — | 59,663 | |||||||||||||||||||||||||||||||||||
Doubtful | — | — | 1,194 | 3,770 | — | 3,038 | |||||||||||||||||||||||||||||||||||
Loss | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total | $ | 502,356 | $ | 87,461 | $ | 770,079 | $ | 440,443 | $ | 52,112 | $ | 783,388 | |||||||||||||||||||||||||||||
The credit risk profile based on payment activity for loans was as follows: | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | 30-59 | 60-89 | Greater | Total | Current | Total | Recorded | ||||||||||||||||||||||||||||||||||
days | days | than | past due | financing | investment> | ||||||||||||||||||||||||||||||||||||
past due | past due | 90 days | receivables | 90 days and | |||||||||||||||||||||||||||||||||||||
accruing | |||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 6,449 | $ | 909 | $ | 14,427 | $ | 21,785 | $ | 2,008,552 | $ | 2,030,337 | $ | — | |||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | 502,356 | 502,356 | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 578 | 166 | 143 | 887 | 808,104 | 808,991 | — | ||||||||||||||||||||||||||||||||||
Residential land | 260 | — | 525 | 785 | 16,150 | 16,935 | 525 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 87,461 | 87,461 | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 18,699 | 18,699 | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 239 | 34 | 954 | 1,227 | 768,852 | 770,079 | — | ||||||||||||||||||||||||||||||||||
Consumer loans | 781 | 377 | 293 | 1,451 | 106,080 | 107,531 | — | ||||||||||||||||||||||||||||||||||
Total loans | $ | 8,307 | $ | 1,486 | $ | 16,342 | $ | 26,135 | $ | 4,316,254 | $ | 4,342,389 | $ | 525 | |||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 2,728 | $ | 622 | $ | 15,411 | $ | 18,761 | $ | 1,987,246 | $ | 2,006,007 | $ | — | |||||||||||||||||||||||||||
Commercial real estate | — | — | 3,770 | 3,770 | 436,673 | 440,443 | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 765 | 312 | 960 | 2,037 | 737,294 | 739,331 | — | ||||||||||||||||||||||||||||||||||
Residential land | 184 | 48 | 2,756 | 2,988 | 13,188 | 16,176 | — | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 52,112 | 52,112 | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 12,774 | 12,774 | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 1,668 | 612 | 3,026 | 5,306 | 778,082 | 783,388 | — | ||||||||||||||||||||||||||||||||||
Consumer loans | 436 | 158 | 304 | 898 | 107,824 | 108,722 | — | ||||||||||||||||||||||||||||||||||
Total loans | $ | 5,781 | $ | 1,752 | $ | 26,227 | $ | 33,760 | $ | 4,125,193 | $ | 4,158,953 | $ | — | |||||||||||||||||||||||||||
The credit risk profile based on nonaccrual loans and accruing loans 90 days or more past due was as follows: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Nonaccrual | Accruing loans | Nonaccrual | Accruing loans | |||||||||||||||||||||||||||||||||||||
loans | 90 days or | loans | 90 days or | ||||||||||||||||||||||||||||||||||||||
more past due | more past due | ||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 20,499 | $ | — | $ | 19,679 | $ | — | |||||||||||||||||||||||||||||||||
Commercial real estate | 596 | — | 4,439 | — | |||||||||||||||||||||||||||||||||||||
Home equity line of credit | 1,105 | — | 2,060 | — | |||||||||||||||||||||||||||||||||||||
Residential land | 2,798 | 525 | 3,161 | — | |||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Commercial loans | 11,414 | — | 18,781 | — | |||||||||||||||||||||||||||||||||||||
Consumer loans | 502 | — | 401 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 36,914 | $ | 525 | $ | 48,521 | $ | — | |||||||||||||||||||||||||||||||||
The total carrying amount and the total unpaid principal balance of impaired loans, with and without recorded allowance for loan losses and combined, were as follows: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid | Related | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||||
investment | principal | Allowance | recorded | income | recorded | income | |||||||||||||||||||||||||||||||||||
balance | investment | recognized* | investment | recognized* | |||||||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 8,718 | $ | 10,398 | $ | — | $ | 8,519 | $ | 30 | $ | 9,077 | $ | 189 | |||||||||||||||||||||||||||
Commercial real estate | 596 | 642 | — | 199 | — | 66 | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 208 | 332 | — | 274 | — | 450 | 4 | ||||||||||||||||||||||||||||||||||
Residential land | 2,500 | 3,356 | — | 2,610 | 40 | 2,823 | 138 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 8,858 | 14,147 | — | 6,152 | 6 | 4,145 | 22 | ||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | 10 | — | ||||||||||||||||||||||||||||||||||
20,880 | 28,875 | — | 17,754 | 76 | 16,571 | 353 | |||||||||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 11,297 | 11,338 | 917 | 10,232 | 112 | 8,019 | 303 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 158 | 158 | 4 | 3,045 | 455 | 4,049 | 458 | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 184 | 212 | 8 | 198 | 1 | 89 | 2 | ||||||||||||||||||||||||||||||||||
Residential land | 6,372 | 6,450 | 1,171 | 6,379 | 81 | 6,685 | 301 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 6,200 | 6,637 | 810 | 10,549 | 207 | 14,249 | 301 | ||||||||||||||||||||||||||||||||||
Consumer loans | 16 | 16 | 5 | 17 | — | 8 | — | ||||||||||||||||||||||||||||||||||
24,227 | 24,811 | 2,915 | 30,420 | 856 | 33,099 | 1,365 | |||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 20,015 | 21,736 | 917 | 18,751 | 142 | 17,096 | 492 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 754 | 800 | 4 | 3,244 | 455 | 4,115 | 458 | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 392 | 544 | 8 | 472 | 1 | 539 | 6 | ||||||||||||||||||||||||||||||||||
Residential land | 8,872 | 9,806 | 1,171 | 8,989 | 121 | 9,508 | 439 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 15,058 | 20,784 | 810 | 16,701 | 213 | 18,394 | 323 | ||||||||||||||||||||||||||||||||||
Consumer loans | 16 | 16 | 5 | 17 | — | 18 | — | ||||||||||||||||||||||||||||||||||
$ | 45,107 | $ | 53,686 | $ | 2,915 | $ | 48,174 | $ | 932 | $ | 49,670 | $ | 1,718 | ||||||||||||||||||||||||||||
31-Dec-13 | Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||||||||||
investment | principal | allowance | recorded | income | |||||||||||||||||||||||||||||||||||||
balance | investment | recognized* | |||||||||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 9,708 | $ | 12,144 | $ | — | $ | 11,674 | $ | 386 | |||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | 802 | — | ||||||||||||||||||||||||||||||||||||
Home equity line of credit | 672 | 1,227 | — | 623 | 2 | ||||||||||||||||||||||||||||||||||||
Residential land | 2,622 | 3,612 | — | 6,675 | 482 | ||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial loans | 3,466 | 4,715 | — | 4,837 | 12 | ||||||||||||||||||||||||||||||||||||
Consumer loans | 19 | 19 | — | 20 | — | ||||||||||||||||||||||||||||||||||||
16,487 | 21,717 | — | 24,631 | 882 | |||||||||||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 6,216 | 6,236 | 642 | 6,455 | 372 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 4,604 | 4,686 | 1,118 | 5,745 | 152 | ||||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential land | 7,452 | 7,623 | 1,332 | 6,844 | 409 | ||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial loans | 17,759 | 20,640 | 2,246 | 15,635 | 139 | ||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
36,031 | 39,185 | 5,338 | 34,679 | 1,072 | |||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 15,924 | 18,380 | 642 | 18,129 | 758 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 4,604 | 4,686 | 1,118 | 6,547 | 152 | ||||||||||||||||||||||||||||||||||||
Home equity line of credit | 672 | 1,227 | — | 623 | 2 | ||||||||||||||||||||||||||||||||||||
Residential land | 10,074 | 11,235 | 1,332 | 13,519 | 891 | ||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial loans | 21,225 | 25,355 | 2,246 | 20,472 | 151 | ||||||||||||||||||||||||||||||||||||
Consumer loans | 19 | 19 | — | 20 | — | ||||||||||||||||||||||||||||||||||||
$ | 52,518 | $ | 60,902 | $ | 5,338 | $ | 59,310 | $ | 1,954 | ||||||||||||||||||||||||||||||||
* | Since loan was classified as impaired. | ||||||||||||||||||||||||||||||||||||||||
Troubled debt restructurings. A loan modification is deemed to be a troubled debt restructuring (TDR) when ASB grants a concession it would not otherwise consider were it not for the borrower’s financial difficulty. When a borrower experiencing financial difficulty fails to make a required payment on a loan or is in imminent default, ASB takes a number of steps to improve the collectability of the loan and maximize the likelihood of full repayment. At times, ASB may modify or restructure a loan to help a distressed borrower improve its financial position to eventually be able to fully repay the loan, provided the borrower has demonstrated both the willingness and the ability to fulfill the modified terms. TDR loans are considered an alternative to foreclosure or liquidation with the goal of minimizing losses to ASB and maximizing recovery. | |||||||||||||||||||||||||||||||||||||||||
ASB may consider various types of concessions in granting a TDR including maturity date extensions, extended amortization of principal, temporary deferral of principal payments, and temporary interest rate reductions. ASB rarely grants principal forgiveness in its TDR modifications. Residential loan modifications generally involve interest rate reduction, extending the amortization period, or capitalizing certain delinquent amounts owed not to exceed the original loan balance. Land loans at origination are typically structured as a three-year term, interest-only monthly payment with a balloon payment due at maturity. Land loan TDR modifications typically involve extending the maturity date up to five years and converting the payments from interest-only to principal and interest monthly, at the same or higher interest rate. Commercial loan modifications generally involve extensions of maturity dates, extending the amortization period, and temporary deferral of principal payments. ASB generally does not reduce the interest rate on commercial loan TDR modifications. Occasionally, additional collateral and/or guaranties are obtained. | |||||||||||||||||||||||||||||||||||||||||
All TDR loans are classified as impaired and are segregated and reviewed separately when assessing the adequacy of the allowance for loan losses based on the appropriate method of measuring impairment: (1) present value of expected future cash flows discounted at the loan’s effective original contractual rate, (2) fair value of collateral less costs to sell, or (3) observable market price. The financial impact of the calculated impairment amount is an increase to the allowance associated with the modified loan. When available information confirms that specific loans or portions thereof are uncollectible (confirmed losses), these amounts are charged off against the allowance for loan losses. | |||||||||||||||||||||||||||||||||||||||||
Loan modifications that occurred were as follows for the indicated periods: | |||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2014 | Nine months ended September 30, 2014 | ||||||||||||||||||||||||||||||||||||||||
Number of | Outstanding recorded investment | Number of | Outstanding recorded investment | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | contracts | Pre-modification | Post-modification | contracts | Pre-modification | Post-modification | |||||||||||||||||||||||||||||||||||
Troubled debt restructurings | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 6 | $ | 1,800 | $ | 1,825 | 18 | $ | 4,915 | $ | 4,972 | |||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Home equity line of credit | 1 | 91 | 91 | 1 | 91 | 91 | |||||||||||||||||||||||||||||||||||
Residential land | 2 | 256 | 256 | 18 | 4,304 | 4,304 | |||||||||||||||||||||||||||||||||||
Commercial loans | 2 | 2,600 | 2,600 | 7 | 3,827 | 3,827 | |||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
11 | $ | 4,747 | $ | 4,772 | 44 | $ | 13,137 | $ | 13,194 | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
Number of | Outstanding recorded investment | Number of | Outstanding recorded investment | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | contracts | Pre-modification | Post-modification | contracts | Pre-modification | Post-modification | |||||||||||||||||||||||||||||||||||
Troubled debt restructurings | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 14 | $ | 2,864 | $ | 2,874 | 32 | $ | 8,631 | $ | 8,712 | |||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | 4 | 462 | 215 | |||||||||||||||||||||||||||||||||||
Residential land | 9 | 2,943 | 2,943 | 16 | 4,983 | 4,974 | |||||||||||||||||||||||||||||||||||
Commercial loans | 3 | 2,076 | 2,076 | 6 | 2,790 | 2,790 | |||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
26 | $ | 7,883 | $ | 7,893 | 58 | $ | 16,866 | $ | 16,691 | ||||||||||||||||||||||||||||||||
Loans modified in TDRs that experienced a payment default of 90 days or more for the indicated periods, and for which the payment default occurred within one year of the modification, were as follows: | |||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2014 | Nine months ended September 30, 2014 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Number of contracts | Recorded investment | Number of contracts | Recorded investment | |||||||||||||||||||||||||||||||||||||
Troubled debt restructurings that | |||||||||||||||||||||||||||||||||||||||||
subsequently defaulted | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | — | $ | — | 1 | $ | 390 | |||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Residential land | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Commercial loans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
— | $ | — | 1 | $ | 390 | ||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Number of contracts | Recorded investment | Number of contracts | Recorded investment | |||||||||||||||||||||||||||||||||||||
Troubled debt restructurings that | |||||||||||||||||||||||||||||||||||||||||
subsequently defaulted | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | — | $ | — | — | $ | — | |||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Home equity line of credit | 1 | 67 | 1 | 67 | |||||||||||||||||||||||||||||||||||||
Residential land | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Commercial loans | 3 | 669 | 3 | 669 | |||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
4 | $ | 736 | 4 | $ | 736 | ||||||||||||||||||||||||||||||||||||
If loans modified in a TDR subsequently default, ASB evaluates the loan for further impairment. Based on its evaluation, adjustments may be made in the allocation of the allowance or partial charge-offs may be taken to further write-down the carrying value of the loan. There were no commitments to lend additional funds to borrowers whose loans have been designated impaired or whose terms have been modified in TDRs as of September 30, 2014. | |||||||||||||||||||||||||||||||||||||||||
Other borrowings. Securities sold under agreements to repurchase are accounted for as financing transactions and the obligations to repurchase these securities are recorded as liabilities in the balance sheet. All such agreements are subject to master netting arrangements, which provide for conditional right of set-off in case of default by either party; however, ASB presents securities sold under agreements to repurchase on a gross basis in the balance sheet. The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties: | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Gross amount of | Gross amount offset in | Net amount of liabilities presented | ||||||||||||||||||||||||||||||||||||||
recognized liabilities | the Balance Sheet | in the Balance Sheet | |||||||||||||||||||||||||||||||||||||||
Repurchase agreements | |||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | $153 | $— | $153 | ||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 145 | — | 145 | ||||||||||||||||||||||||||||||||||||||
Gross amount not offset in the Balance Sheet | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Net amount of | Financial | Cash | Net amount | |||||||||||||||||||||||||||||||||||||
liabilities presented | instruments | collateral | |||||||||||||||||||||||||||||||||||||||
in the Balance Sheet | pledged | ||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||||||||||||||
Financial institution | $ | 50 | $ | 50 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Government entities | 15 | 15 | — | — | |||||||||||||||||||||||||||||||||||||
Commercial account holders | 88 | 88 | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 153 | $ | 153 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Financial institution | $ | 51 | $ | 51 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Commercial account holders | 94 | 94 | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 145 | $ | 145 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Amortized intangible assets. The table below presents the gross carrying amount, accumulated amortization, valuation allowance and net carrying amount of ASB’s mortgage servicing assets as of September 30, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||||||
30-Sep | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Gross | Accumulated amortization | Valuation allowance | Net | Gross | Accumulated amortization | Valuation allowance | Net | |||||||||||||||||||||||||||||||||
carrying amount | carrying amount | carrying amount | carrying amount | ||||||||||||||||||||||||||||||||||||||
Mortgage servicing assets | $ | 26,685 | (15,003 | ) | (158 | ) | $ | 11,524 | $ | 25,198 | (13,265 | ) | (127 | ) | $ | 11,806 | |||||||||||||||||||||||||
Changes in the valuation allowance for mortgage servicing assets were as follows: | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Valuation allowance, January 1 | $ | 251 | $ | 498 | |||||||||||||||||||||||||||||||||||||
Provision (recovery) | (36 | ) | (215 | ) | |||||||||||||||||||||||||||||||||||||
Other-than-temporary impairment | (57 | ) | (156 | ) | |||||||||||||||||||||||||||||||||||||
Valuation allowance, September 30 | $ | 158 | $ | 127 | |||||||||||||||||||||||||||||||||||||
ASB recognizes a mortgage servicing asset when a mortgage loan is sold with servicing rights retained. This mortgage servicing right (MSR) is initially capitalized at its presumed fair value based on market data at the time of sale and accounted for in subsequent periods at the lower of amortized cost or fair value. The MSR is amortized in proportion to and over the period of estimated net servicing income and assessed for impairment at each reporting date. | |||||||||||||||||||||||||||||||||||||||||
ASB stratifies the MSR based on predominant risk characteristics of the underlying loans including loan type and note rate. For each stratum, fair value is calculated by discounting expected net income streams using discount rates that reflect industry pricing for similar assets. Expected net income streams are estimated based on industry assumptions regarding prepayment expectations and income and expenses associated with servicing residential mortgage loans for others. | |||||||||||||||||||||||||||||||||||||||||
Impairment is recognized through a valuation allowance for each stratum when the carrying amount exceeds fair value, with any associated provision recorded as a component of loan servicing fees included in ASB’s noninterest income. A direct write-down is recorded when the recoverability of the valuation allowance is deemed to be unrecoverable. | |||||||||||||||||||||||||||||||||||||||||
Key assumptions used in estimating the fair value of the bank’s mortgage servicing rights were as follows: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||||||||||||||
Unpaid principal balance | $ | 1,380,299 | $ | 1,329,815 | |||||||||||||||||||||||||||||||||||||
Weighted average note rate | 4.08 | % | 4.06 | % | |||||||||||||||||||||||||||||||||||||
Weighted average discount rate | 9.6 | % | 10.1 | % | |||||||||||||||||||||||||||||||||||||
Weighted average prepayment speed | 8.1 | % | 6.6 | % | |||||||||||||||||||||||||||||||||||||
Derivative financial instruments. ASB enters into interest rate lock commitments with borrowers, and forward commitments to sell loans or to-be-announced mortgage-backed securities to investors to hedge against the inherent interest rate and pricing risk associated with selling loans. | |||||||||||||||||||||||||||||||||||||||||
ASB enters into interest rate lock commitments (IRLCs) for residential mortgage loans, which commit ASB to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose ASB to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free-standing derivatives which are carried at fair value with changes recorded in mortgage banking income. | |||||||||||||||||||||||||||||||||||||||||
ASB enters into forward commitments to hedge the interest rate risk for rate locked mortgage applications in process and closed mortgage loans held for sale. These commitments are primarily forward sales of to-be-announced mortgage backed securities. Generally, when mortgage loans are closed, the forward commitment is liquidated and replaced with a mandatory delivery forward sale of the mortgage to a secondary market investor. In some cases, a best-efforts forward sale agreement is utilized as the forward commitment. These commitments are free-standing derivatives which are carried at fair value with changes recorded in mortgage banking income. | |||||||||||||||||||||||||||||||||||||||||
Changes in the fair value of IRLCs and forward commitments subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time. | |||||||||||||||||||||||||||||||||||||||||
The notional amount and fair value of ASB’s derivative financial instruments as of September 30, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||||||||||
September 30, 2014 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Notional amount | Fair value | Notional amount | Fair value | |||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | 14,511 | $ | 215 | $ | 25,070 | $ | 464 | |||||||||||||||||||||||||||||||||
Forward commitments | 12,707 | (25 | ) | 26,018 | 139 | ||||||||||||||||||||||||||||||||||||
The following table presents ASB’s derivative financial instruments, their fair values, and balance sheet location as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments Not Designated as Hedging Instruments 1 | September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Derivative asset | Derivative liability | Derivative asset | Derivative liability | |||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | 216 | $ | 1 | $ | 488 | $ | 24 | |||||||||||||||||||||||||||||||||
Forward commitments | 1 | 26 | 141 | 2 | |||||||||||||||||||||||||||||||||||||
$ | 217 | $ | 27 | $ | 629 | $ | 26 | ||||||||||||||||||||||||||||||||||
1 Derivative assets are included in other assets and derivative liabilities are included in other liabilities in the balance sheets. | |||||||||||||||||||||||||||||||||||||||||
The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in the statements of income for the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments Not Designated as Hedging Instruments | Location of net gains (losses) recognized in the Statement of Income | Three months | Nine months | ||||||||||||||||||||||||||||||||||||||
ended September 30 | ended September 30 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | Mortgage banking income | $ | 215 | $ | 818 | $ | (249 | ) | $ | 556 | |||||||||||||||||||||||||||||||
Forward commitments | Mortgage banking income | (25 | ) | (1,173 | ) | (164 | ) | (273 | ) | ||||||||||||||||||||||||||||||||
$ | 190 | $ | (355 | ) | $ | (413 | ) | $ | 283 | ||||||||||||||||||||||||||||||||
Litigation. In March 2011, a purported class action lawsuit was filed in the First Circuit Court of the state of Hawaii by a customer who claimed that ASB had improperly charged overdraft fees on debit card transactions. ASB filed a motion to dismiss the lawsuit on the basis that as a bank chartered under federal law, ASB believes its business practices are governed by federal regulations established for federal savings banks and not by state law. In July 2011, the Circuit Court denied ASB’s motion and ASB appealed that decision. ASB’s appeal is currently pending before the Hawaii Supreme Court. The probable outcome and range of reasonably possible loss remains indeterminable at this time. | |||||||||||||||||||||||||||||||||||||||||
ASB is subject in the normal course of business to pending and threatened legal proceedings. Management does not anticipate that the aggregate ultimate liability arising out of these pending or threatened legal proceedings will be material to its financial position. However, ASB cannot rule out the possibility that such outcomes could have a material adverse effect on the results of operations or liquidity for a particular reporting period in the future. |
Retirement_benefits
Retirement benefits | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Retirement benefits | ' | ||||||||||||||||||||||||||||||||
Retirement benefits | |||||||||||||||||||||||||||||||||
Defined benefit pension and other postretirement benefit plans information. For the first nine months of 2014, the Company contributed $45 million ($44 million by the Utilities) to its pension and other postretirement benefit plans, compared to $62 million ($61 million by the Utilities) in the first nine months of 2013. The Company’s current estimate of contributions to its pension and other postretirement benefit plans in 2014 is $60 million ($59 million by the Utilities, $1 million by HEI and nil by ASB), compared to $83 million ($81 million by the Utilities, $2 million by HEI and nil by ASB) in 2013. In addition, the Company expects to pay directly $2 million ($1 million by the Utilities) of benefits in 2014, compared to $2 million ($1 million by the Utilities) paid in 2013. | |||||||||||||||||||||||||||||||||
On July 6, 2012, President Obama signed the Moving Ahead for Progress in the 21st Century Act (MAP-21), which included provisions related to the funding and administration of pension plans. This law does not affect the Company’s or the Utilities' accounting for pension benefits; therefore, the net periodic benefit costs disclosed for the plans were not affected. The Company elected to apply MAP-21 for 2012, which improved the plans’ Adjusted Funding Target Attainment Percentage for funding and benefit distribution purposes and thereby reduced the 2012 minimum funding requirement and lifted the restrictions on accelerated distribution options (which restrictions were in effect from April 1, 2011 to September 30, 2012) for HEI and the Utilities. MAP-21 caused the minimum required funding under the Employee Retirement Income Security Act of 1974, as amended (ERISA) to be less than the net periodic cost for 2013 and 2014; therefore, to satisfy the requirements of the Utilities pension and OPEB tracking mechanisms, the Utilities will contribute the net periodic cost in 2014. | |||||||||||||||||||||||||||||||||
The Pension Protection Act provides that if a pension plan’s funded status falls below certain levels, more conservative assumptions must be used to value obligations under the pension plan. The HEI Retirement Plan met the threshold requirements in each of 2012 and 2013 so that the more conservative assumptions did not apply for either the 2013 or 2014 valuation of plan liabilities for purposes of calculating the minimum required contribution. Other factors could cause changes to the required contribution levels. | |||||||||||||||||||||||||||||||||
The components of net periodic benefit cost for HEI consolidated and Hawaiian Electric consolidated were as follows: | |||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
Pension benefits | Other benefits | Pension benefits | Other benefits | ||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
HEI consolidated | |||||||||||||||||||||||||||||||||
Service cost | $ | 12,306 | $ | 14,097 | $ | 870 | $ | 1,077 | $ | 36,958 | $ | 42,307 | $ | 2,619 | $ | 3,229 | |||||||||||||||||
Interest cost | 18,044 | 16,187 | 2,137 | 1,891 | 54,158 | 48,600 | 6,414 | 5,677 | |||||||||||||||||||||||||
Expected return on plan assets | (20,337 | ) | (18,134 | ) | (2,724 | ) | (2,531 | ) | (61,018 | ) | (54,401 | ) | (8,180 | ) | (7,614 | ) | |||||||||||||||||
Amortization of net prior service loss (gain) | 22 | (24 | ) | (448 | ) | (448 | ) | 66 | (73 | ) | (1,345 | ) | (1,345 | ) | |||||||||||||||||||
Amortization of net actuarial loss (gain) | 5,064 | 9,560 | (2 | ) | 398 | 15,240 | 28,878 | (8 | ) | 1,203 | |||||||||||||||||||||||
Net periodic benefit cost (credit) | 15,099 | 21,686 | (167 | ) | 387 | 45,404 | 65,311 | (500 | ) | 1,150 | |||||||||||||||||||||||
Impact of PUC D&Os | (3,331 | ) | (9,257 | ) | 494 | (332 | ) | (9,993 | ) | (28,847 | ) | 1,482 | (1,018 | ) | |||||||||||||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os) | $ | 11,768 | $ | 12,429 | $ | 327 | $ | 55 | $ | 35,411 | $ | 36,464 | $ | 982 | $ | 132 | |||||||||||||||||
Hawaiian Electric consolidated | |||||||||||||||||||||||||||||||||
Service cost | $ | 11,900 | $ | 13,620 | $ | 848 | $ | 1,041 | $ | 35,698 | $ | 40,861 | $ | 2,544 | $ | 3,122 | |||||||||||||||||
Interest cost | 16,495 | 14,780 | 2,058 | 1,822 | 49,484 | 44,339 | 6,175 | 5,466 | |||||||||||||||||||||||||
Expected return on plan assets | (18,167 | ) | (16,138 | ) | (2,684 | ) | (2,502 | ) | (54,496 | ) | (48,413 | ) | (8,054 | ) | (7,502 | ) | |||||||||||||||||
Amortization of net prior service loss (gain) | 15 | (116 | ) | (451 | ) | (451 | ) | 46 | (348 | ) | (1,353 | ) | (1,353 | ) | |||||||||||||||||||
Amortization of net actuarial loss | 4,616 | 8,649 | — | 387 | 13,845 | 25,948 | — | 1,159 | |||||||||||||||||||||||||
Net periodic benefit cost (credit) | 14,859 | 20,795 | (229 | ) | 297 | 44,577 | 62,387 | (688 | ) | 892 | |||||||||||||||||||||||
Impact of PUC D&Os | (3,331 | ) | (9,257 | ) | 494 | (332 | ) | (9,993 | ) | (28,847 | ) | 1,482 | (1,018 | ) | |||||||||||||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os) | $ | 11,528 | $ | 11,538 | $ | 265 | $ | (35 | ) | $ | 34,584 | $ | 33,540 | $ | 794 | $ | (126 | ) | |||||||||||||||
HEI consolidated recorded retirement benefits expense of $24 million ($23 million by the Utilities) and $24 million ($21 million by the Utilities) in the first nine months of 2014 and 2013, respectively, and charged the remaining net periodic benefit cost primarily to electric utility plant. | |||||||||||||||||||||||||||||||||
The Utilities have implemented pension and OPEB tracking mechanisms under which all of their retirement benefit expenses (except for executive life and nonqualified pension plan expenses) determined in accordance with GAAP are recovered over time. Under the tracking mechanisms, these retirement benefit costs that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will be amortized over 5 years beginning with the issuance of the PUC's D&O in the respective utility’s next rate case. | |||||||||||||||||||||||||||||||||
Defined contribution plans information. For the first nine months of 2014 and 2013, the Company’s expense for its defined contribution pension plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan was $3.4 million and $3.1 million, respectively, and cash contributions were $4.2 million and $3.7 million, respectively. For the first nine months of 2014 and 2013, the Utilities’ expense for its defined contribution pension plan was $0.7 million and $0.4 million, respectively, and cash contributions were $0.7 million and $0.4 million, respectively. |
Sharebased_compensation
Share-based compensation | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||||||||
Share-based compensation | ' | |||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||
Under the 2010 Equity and Incentive Plan, HEI can issue shares of common stock as incentive compensation to selected employees in the form of stock options, stock appreciation rights (SARs), restricted shares, restricted stock units, performance shares and other share-based and cash-based awards. The 2010 Equity and Incentive Plan was amended and restated (EIP) effective March 1, 2014 and an additional 1.5 million shares was added to the shares available for issuance under these programs. | ||||||||||||||||||||||||||||||||
As of September 30, 2014, approximately 3.6 million shares were available for future issuance under the terms of the EIP, assuming recycling of shares withheld to satisfy minimum statutory tax liabilities relating to EIP awards, including an estimated 1.1 million shares that could be issued upon the vesting of outstanding restricted stock units and the achievement of performance goals for awards outstanding under long-term incentive plans (assuming that such performance goals are achieved at maximum levels). | ||||||||||||||||||||||||||||||||
Under the 1987 Stock Option and Incentive Plan, as amended (SOIP), there are possible future issuances of an estimated 1,000 shares upon the exercise of outstanding SARs, based on the market price of shares on September 30, 2014. As of May 11, 2010 (when the 2010 Equity and Incentive Plan became effective), no new awards may be granted under the SOIP. After the shares of common stock for the outstanding SOIP grants and awards are issued or such grants and awards expire, the remaining shares registered under the SOIP will be deregistered and delisted. | ||||||||||||||||||||||||||||||||
Under the 2011 Nonemployee Director Stock Plan (2011 Director Plan), HEI can issue shares of common stock as compensation to nonemployee directors of HEI, Hawaiian Electric and ASB. As of September 30, 2014, there were 169,290 shares remaining available for future issuance under the 2011 Director Plan. | ||||||||||||||||||||||||||||||||
Share-based compensation expense and the related income tax benefit were as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
HEI consolidated | ||||||||||||||||||||||||||||||||
Share-based compensation expense 1 | $ | 2 | $ | 2.5 | $ | 7.2 | $ | 6 | ||||||||||||||||||||||||
Income tax benefit | 0.7 | 0.9 | 2.6 | 2.2 | ||||||||||||||||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||||||||||||||
Share-based compensation expense 1 | 0.6 | 0.8 | 2.2 | 1.9 | ||||||||||||||||||||||||||||
Income tax benefit | 0.2 | 0.3 | 0.9 | 0.7 | ||||||||||||||||||||||||||||
1 | $0.04 million and $0.03 million of this share-based compensation expense was capitalized in the third quarter of 2014 and 2013, respectively. $0.12 million and $0.09 million of this share-based compensation expense was capitalized in the nine months ended September 30, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||
Stock awards. HEI granted HEI common stock to nonemployee directors of HEI, Hawaiian Electric and ASB under the 2011 Director Plan as follows: | ||||||||||||||||||||||||||||||||
Nine months ended September 30 | ||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Shares granted | 33,170 | 33,184 | ||||||||||||||||||||||||||||||
Fair value | $ | 0.8 | $ | 0.8 | ||||||||||||||||||||||||||||
Income tax benefit | 0.3 | 0.3 | ||||||||||||||||||||||||||||||
The number of shares issued to each nonemployee director of HEI, Hawaiian Electric and ASB is determined based on the closing price of HEI Common Stock on the grant date. | ||||||||||||||||||||||||||||||||
Nonqualified stock options. Since April 9, 2013, there were no nonqualified stock options (NQSOs) outstanding. | ||||||||||||||||||||||||||||||||
NQSO activity and statistics were as follows: | ||||||||||||||||||||||||||||||||
(dollars in thousands, except prices) | Three months ended September 30, 2013 | Nine months ended | ||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Shares exercised | — | 14,000 | ||||||||||||||||||||||||||||||
Weighted-average exercise price | $ | — | $ | 20.49 | ||||||||||||||||||||||||||||
Cash received from exercise | $ | — | $ | 287 | ||||||||||||||||||||||||||||
Intrinsic value of shares exercised 1 | $ | — | $ | 128 | ||||||||||||||||||||||||||||
Tax benefit realized for the deduction of exercises | $ | — | $ | 50 | ||||||||||||||||||||||||||||
1 Intrinsic value is the amount by which the fair market value of the underlying stock and the related dividend equivalents exceeds the exercise price of the option. | ||||||||||||||||||||||||||||||||
Stock appreciation rights. Information about HEI’s SARs was as follows: | ||||||||||||||||||||||||||||||||
30-Sep-14 | Outstanding & Exercisable (Vested) | |||||||||||||||||||||||||||||||
Year of | Number of shares | Weighted-average | Weighted-average | |||||||||||||||||||||||||||||
grant | underlying SARs | remaining | exercise price | |||||||||||||||||||||||||||||
contractual life | ||||||||||||||||||||||||||||||||
2005 | 102,000 | 0.5 | $ | 26.18 | ||||||||||||||||||||||||||||
As of December 31, 2013, the shares underlying SARs outstanding totaled 164,000, with a weighted-average exercise price of $26.12. As of September 30, 2014, all SARs outstanding were exercisable and had an aggregate intrinsic value of $38,000. In April 2014, the shares underlying SARs totaling 62,000, with a weighted-average exercise price of $26.02, expired. | ||||||||||||||||||||||||||||||||
Restricted shares. As of September 30, 2014 and December 31, 2013, the outstanding restricted shares totaled 4,503 with a weighted-average exercise price of $22.21. For the first nine months of 2014 and 2013, there was no activity relating to restricted shares. As of September 30, 2014, there was $21,000 of total unrecognized compensation cost related to nonvested restricted shares and restricted stock awards. The cost is expected to be recognized over a weighted-average period of 0.2 years. | ||||||||||||||||||||||||||||||||
Restricted stock units. Information about HEI’s grants of restricted stock units was as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||||||||
Outstanding, beginning of period | 264,326 | $ | 25.74 | 300,313 | $ | 25.15 | 288,151 | $ | 25.17 | 315,094 | $ | 22.82 | ||||||||||||||||||||
Granted | 2,750 | 24.48 | 4,000 | 26.48 | 117,786 | 25.17 | 111,231 | 26.88 | ||||||||||||||||||||||||
Vested | (3,500 | ) | 23.5 | (2,500 | ) | 22.31 | (142,361 | ) | 24.07 | (116,544 | ) | 20.39 | ||||||||||||||||||||
Forfeited | — | — | (11,321 | ) | 25.88 | — | — | (19,289 | ) | 25.62 | ||||||||||||||||||||||
Outstanding, end of period | 263,576 | $ | 25.76 | 290,492 | $ | 25.16 | 263,576 | $ | 25.76 | 290,492 | $ | 25.16 | ||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted ($ millions) | $ | 0.1 | $ | 0.1 | $ | 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. | |||||||||||||||||||||||||||||||
As of September 30, 2014, there was $5.1 million of total unrecognized compensation cost related to the nonvested restricted stock units. The cost is expected to be recognized over a weighted-average period of 2.6 years. | ||||||||||||||||||||||||||||||||
For the first nine months of 2014 and 2013, total restricted stock units that vested and related dividends had a fair value of $4.1 million and $3.6 million, respectively, and the related tax benefits were $1.3 million and $1.0 million, respectively. | ||||||||||||||||||||||||||||||||
Long-term incentive plan payable in stock. The 2012-2014 long-term incentive plan (LTIP), 2013-2015 LTIP and 2014-2016 LTIP, provide for performance awards under the EIP of shares of HEI common stock based on the satisfaction of performance goals considered to be a market condition and service conditions. The number of shares of HEI common stock that may be awarded is fixed on the date the grants are made subject to the achievement of specified performance levels. The potential payout varies from 0% to 200% of the number of target shares depending on achievement of the goals. The LTIP performance goals for the LTIP periods include awards with a market goal based on total return to shareholders (TRS) of HEI stock as a percentile to the Edison Electric Institute Index over the applicable three-year period. In addition, the 2012-2014 LTIP, 2013-2015 LTIP and 2014-2016 LTIP have performance goals related to levels of HEI consolidated net income, HEI consolidated return on average common equity (ROACE), Hawaiian Electric consolidated net income, Hawaiian Electric consolidated ROACE, ASB net income and ASB return on assets — all based on the applicable three-year averages, and ASB return on assets relative to performance peers. | ||||||||||||||||||||||||||||||||
LTIP linked to TRS. Information about HEI’s LTIP grants linked to TRS was as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||||||||
Outstanding, beginning of period | 257,956 | $ | 28.45 | 235,064 | $ | 32.87 | 232,127 | $ | 32.88 | 239,256 | $ | 29.12 | ||||||||||||||||||||
Granted (target level) | — | — | 1,505 | 32.69 | 97,524 | 22.95 | 91,038 | 32.69 | ||||||||||||||||||||||||
Vested (issued or unissued and cancelled) | — | — | — | — | (70,189 | ) | 35.46 | (87,753 | ) | 22.45 | ||||||||||||||||||||||
Forfeited | — | — | (4,442 | ) | 32.4 | (1,506 | ) | 28.32 | (10,414 | ) | 32.72 | |||||||||||||||||||||
Outstanding, end of period | 257,956 | $ | 28.45 | 232,127 | $ | 32.88 | 257,956 | $ | 28.45 | 232,127 | $ | 32.88 | ||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted ($ millions) | $ | — | $ | — | $ | 2.2 | $ | 3 | ||||||||||||||||||||||||
-1 | Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. | |||||||||||||||||||||||||||||||
The grant date fair values of the shares were determined using a Monte Carlo simulation model utilizing actual information for the common shares of HEI and its peers for the period from the beginning of the performance period to the grant date and estimated future stock volatility and dividends of HEI and its peers over the remaining three-year performance period. The expected stock volatility assumptions for HEI and its peer group were based on the three-year historic stock volatility, and the annual dividend yield assumptions were based on dividend yields calculated on the basis of daily stock prices over the same three-year historical period. | ||||||||||||||||||||||||||||||||
The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TRS and the resulting fair value of LTIP awards granted: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Risk-free interest rate | 0.66 | % | 0.38 | % | ||||||||||||||||||||||||||||
Expected life in years | 3 | 3 | ||||||||||||||||||||||||||||||
Expected volatility | 17.8 | % | 19.4 | % | ||||||||||||||||||||||||||||
Range of expected volatility for Peer Group | 12.4% to 23.3% | 12.4% to 25.3% | ||||||||||||||||||||||||||||||
Grant date fair value (per share) | $ | 22.95 | $ | 32.69 | ||||||||||||||||||||||||||||
For the nine months ended September 30, 2014 and 2013, total vested LTIP awards linked to TRS and related dividends had a fair value of nil and $2.2 million, respectively, and the related tax benefits were nil and $0.9 million, respectively. For the nine months ended September 30, 2014, all of the shares vested (which were granted at target level based on the satisfaction of TRS performance) for the 2011-2013 LTIP lapsed. | ||||||||||||||||||||||||||||||||
As of September 30, 2014, there was $2.7 million of total unrecognized compensation cost related to the nonvested performance awards payable in shares linked to TRS. The cost is expected to be recognized over a weighted-average period of 1.3 years. | ||||||||||||||||||||||||||||||||
LTIP awards linked to other performance conditions. Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||||||||
Outstanding, beginning of period | 359,782 | $ | 26.01 | 304,473 | $ | 26.12 | 296,843 | $ | 26.14 | 247,175 | $ | 25.04 | ||||||||||||||||||||
Granted (target level) | — | — | 1,504 | 27.11 | 129,603 | 25.18 | 120,399 | 26.89 | ||||||||||||||||||||||||
Vested (issued) | — | — | — | — | (65,089 | ) | 24.95 | (18,280 | ) | 18.95 | ||||||||||||||||||||||
Cancelled | — | — | — | — | — | — | (37,346 | ) | 24.96 | |||||||||||||||||||||||
Forfeited | — | — | (4,881 | ) | 26.53 | (1,575 | ) | 26.07 | (10,852 | ) | 26.2 | |||||||||||||||||||||
Outstanding, end of period | 359,782 | $ | 26.01 | 301,096 | $ | 26.12 | 359,782 | $ | 26.01 | 301,096 | $ | 26.12 | ||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions) | $ | — | $ | — | $ | 3.3 | $ | 3.2 | ||||||||||||||||||||||||
-1 | Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. | |||||||||||||||||||||||||||||||
For the nine months ended September 30, 2014 and 2013, total vested LTIP awards linked to other performance conditions and related dividends had a fair value of $1.9 million and $0.6 million and the related tax benefits were $0.8 million and $0.2 million, respectively. | ||||||||||||||||||||||||||||||||
As of September 30, 2014, there was $4.0 million of total unrecognized compensation cost related to the nonvested shares linked to performance conditions other than TRS. The cost is expected to be recognized over a weighted-average period of 1.3 years. |
Earnings_per_share_and_shareho
Earnings per share and shareholders' equity | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||||||||||
Earnings per share and shareholders' equity | ' | |||||||||||||||||||||||||||||||
Earnings per share and shareholders’ equity | ||||||||||||||||||||||||||||||||
Earnings per share. Under the two-class method of computing earnings per share (EPS), EPS was comprised as follows for both participating securities and unrestricted common stock: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||||||||||||
Distributed earnings | $ | 0.31 | $ | 0.31 | $ | 0.31 | $ | 0.31 | $ | 0.93 | $ | 0.93 | $ | 0.93 | $ | 0.93 | ||||||||||||||||
Undistributed earnings | 0.16 | 0.15 | 0.18 | 0.17 | 0.4 | 0.39 | 0.31 | 0.3 | ||||||||||||||||||||||||
$ | 0.47 | $ | 0.46 | $ | 0.49 | $ | 0.48 | $ | 1.33 | $ | 1.32 | $ | 1.24 | $ | 1.23 | |||||||||||||||||
As of September 30, 2014, there were no shares that were antidilutive. As of September 30, 2013, the antidilutive effects of SARs on 164,000 shares of HEI common stock (for which the exercise prices were greater than the closing market price of HEI’s common stock on such dates), were not included in the computation of dilutive EPS. | ||||||||||||||||||||||||||||||||
Shareholders’ equity. | ||||||||||||||||||||||||||||||||
Equity forward transaction. On March 19, 2013, HEI entered into an equity forward transaction in connection with a public offering on that date of 6.1 million shares of HEI common stock at $26.75 per share. On March 19, 2013, HEI common stock closed at $27.01 per share. On March 20, 2013, the underwriters exercised their over-allotment option in full and HEI entered into an equity forward transaction in connection with the resulting additional 0.9 million shares of HEI common stock. | ||||||||||||||||||||||||||||||||
The use of an equity forward transaction substantially eliminates future equity market price risk by fixing a common equity offering sales price under the then existing market conditions, while mitigating immediate share dilution resulting from the offering by postponing the actual issuance of common stock until funds are needed in accordance with the Company’s capital investment plans. Pursuant to the terms of these transactions, a forward counterparty borrowed 7 million shares of HEI’s common stock from third parties and sold them to a group of underwriters for $26.75 per share, less an underwriting discount equal to $1.00312 per share. Under the terms of the equity forward transactions, to the extent that the transactions are physically settled, HEI would be required to issue and deliver shares of HEI common stock to the forward counterparty at the then applicable forward sale price. The forward sale price was initially determined to be $25.74688 per share at the time the equity forward transactions were entered into, and the amount of cash to be received by HEI upon physical settlement of the equity forward is subject to certain adjustments in accordance with the terms of the equity forward transactions. Initially, the equity forward transactions had to be settled fully by March 25, 2015, but an amendment extended this date to December 31, 2015. Except in specified circumstances or events that would require physical settlement, HEI is able to elect to settle the equity forward transactions by means of physical, cash or net share settlement, in whole or in part, at any time on or prior to December 31, 2015. | ||||||||||||||||||||||||||||||||
The equity forward transactions had no initial fair value since they were entered into at the then market price of the common stock. HEI receives proceeds from the sale of common stock when the equity forward transactions are settled and records the proceeds at that time in equity. HEI concluded that the equity forward transactions were equity instruments based on the accounting guidance in ASC 480, "Distinguishing Liabilities from Equity," and ASC 815, "Derivatives and Hedging," and that they qualified for an exception from derivative accounting under ASC 815 because the forward sale transactions were indexed to its own stock. On December 19, 2013, HEI settled 1.3 million shares under the equity forward for proceeds of $32.1 million (net of the underwriting discount of $1.3 million), which funds were ultimately used to purchase Hawaiian Electric shares. On July 14, 2014, HEI settled 1.0 million shares for proceeds of $23.9 million (net of underwriting discount of $1.0 million), which funds will be used primarily later in 2014 to invest in Hawaiian Electric to fund its capital expenditures, to repay short-term borrowings incurred to finance or refinance such capital expenditures, and/or for reimbursement of funds used for payment of capital expenditures. In the interim, the proceeds have been applied by HEI to repay its short-term borrowings and for working capital and general corporate purposes. | ||||||||||||||||||||||||||||||||
At September 30, 2014, the equity forward transactions could have been settled with delivery to the forward counterparty of (a) 4.7 million shares in exchange for cash of $109 million, (b) cash of approximately $16 million (which amount includes $5 million of underwriting discount), or (c) approximately 588,000 shares. | ||||||||||||||||||||||||||||||||
Prior to their settlement, the shares remaining under the equity forward transactions will be reflected in HEI’s diluted EPS calculations using the treasury stock method. Under this method, the number of shares of HEI’s common stock used in calculating diluted EPS for a reporting period would be increased by the number of shares, if any, that would be issued upon physical settlement of the equity forward transactions less the number of shares that could be purchased by HEI in the market (based on the average market price during that reporting period) using the proceeds receivable upon settlement of the equity forward transactions (based on the adjusted forward sale price of $23.23 as of September 30, 2014). The excess number of shares is weighted for the portion of the reporting period in which the equity forward transactions are outstanding. | ||||||||||||||||||||||||||||||||
Accordingly, before physical or net share settlement of the equity forward transactions, and subject to the occurrence of certain events, HEI anticipates that the forward sale agreement and additional forward sale agreement will have a dilutive effect on HEI’s EPS only during periods when the applicable average market price per share of HEI’s common stock is above the per share adjusted forward sale price, as described above. However, if HEI decides to physically or net share settle the forward sale agreement and additional forward sale agreement, any delivery by HEI of shares upon settlement could result in dilution to HEI’s EPS. | ||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2014, the equity forward transactions did not have a material dilutive effect on HEI’s EPS. | ||||||||||||||||||||||||||||||||
Accumulated other comprehensive income. Changes in the balances of each component of accumulated other comprehensive income/(loss) (AOCI) were as follows: | ||||||||||||||||||||||||||||||||
HEI Consolidated | Hawaiian Electric Consolidated | |||||||||||||||||||||||||||||||
(in thousands) | Net unrealized gains (losses) on securities | Unrealized losses on derivatives | Retirement benefit plans | AOCI | AOCI -retirement benefit plans | |||||||||||||||||||||||||||
Balance, December 31, 2013 | $ | (3,663 | ) | $ | (525 | ) | $ | (12,562 | ) | $ | (16,750 | ) | $ | 608 | ||||||||||||||||||
Current period other comprehensive income | 1,691 | 177 | 888 | 2,756 | 32 | |||||||||||||||||||||||||||
Balance, September 30, 2014 | $ | (1,972 | ) | $ | (348 | ) | $ | (11,674 | ) | $ | (13,994 | ) | $ | 640 | ||||||||||||||||||
Balance, December 31, 2012 | $ | 10,761 | $ | (760 | ) | $ | (36,424 | ) | $ | (26,423 | ) | $ | (970 | ) | ||||||||||||||||||
Current period other comprehensive income (loss) | (11,462 | ) | 177 | 2,022 | (9,263 | ) | 52 | |||||||||||||||||||||||||
Balance, September 30, 2013 | $ | (701 | ) | $ | (583 | ) | $ | (34,402 | ) | $ | (35,686 | ) | $ | (918 | ) | |||||||||||||||||
Reclassifications out of AOCI were as follows: | ||||||||||||||||||||||||||||||||
Amount reclassified from AOCI | ||||||||||||||||||||||||||||||||
Three months | Nine months | |||||||||||||||||||||||||||||||
ended September 30 | ended September 30 | |||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | Affected line item in the Statement of Income | |||||||||||||||||||||||||||
HEI consolidated | ||||||||||||||||||||||||||||||||
Net realized gains on securities | $ | — | $ | — | $ | (1,715 | ) | $ | (738 | ) | Revenues-bank (net gains on sales of securities) | |||||||||||||||||||||
Derivatives qualified as cash flow hedges | ||||||||||||||||||||||||||||||||
Interest rate contracts (settled in 2011) | 59 | 59 | 177 | 177 | Interest expense | |||||||||||||||||||||||||||
Retirement benefit plan items | ||||||||||||||||||||||||||||||||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | 2,829 | 5,789 | 8,515 | 17,490 | See Note 5 for additional details | |||||||||||||||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | (2,542 | ) | (5,156 | ) | (7,627 | ) | (15,468 | ) | See Note 5 for additional details | |||||||||||||||||||||||
Total reclassifications | $ | 346 | $ | 692 | $ | (650 | ) | $ | 1,461 | |||||||||||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||||||||||||||
Retirement benefit plan items | ||||||||||||||||||||||||||||||||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | $ | 2,552 | $ | 5,173 | $ | 7,659 | $ | 15,520 | See Note 5 for additional details | |||||||||||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | (2,542 | ) | (5,156 | ) | (7,627 | ) | (15,468 | ) | See Note 5 for additional details | |||||||||||||||||||||||
Total reclassifications | $ | 10 | $ | 17 | $ | 32 | $ | 52 | ||||||||||||||||||||||||
Fair_value_measurements
Fair value measurements | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Fair value measurements | ' | ||||||||||||||||||||||||
Fair value measurements | |||||||||||||||||||||||||
Fair value estimates are based on the price that would be received to sell an asset, or paid upon the transfer of a liability, in an orderly transaction between market participants at the measurement date. The fair value estimates are generally determined based on assumptions that market participants would use in pricing the asset or liability and are based on market data obtained from independent sources. However, in certain cases, the Company and the Utilities use their own assumptions about market participant assumptions based on the best information available in the circumstances. These valuations are estimates at a specific point in time, based on relevant market information, information about the financial instrument and judgments regarding future expected loss experience, economic conditions, risk characteristics of various financial instruments and other factors. These estimates do not reflect any premium or discount that could result if the Company or the Utilities were to sell its entire holdings of a particular financial instrument at one time. Because no active trading market exists for a portion of the Company’s and the Utilities' financial instruments, fair value estimates cannot be determined with precision. Changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses could have a significant effect on fair value estimates, but have not been considered in making such estimates. | |||||||||||||||||||||||||
The Company and the Utilities group its financial assets measured at fair value in three levels outlined as follows: | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
The Company and/or the Utilities used the following methods and assumptions to estimate the fair value of each applicable class of financial instruments for which it is practicable to estimate that value: | |||||||||||||||||||||||||
Short term borrowings—other than bank. The carrying amount approximated fair value because of the short maturity of these instruments. | |||||||||||||||||||||||||
Investment and mortgage-related securities. To determine the fair value of investment securities held in ASB’s available-for-sale portfolio, independent third-party vendor or broker pricing is used on an unadjusted basis. Prices for investments and mortgage-related securities are based on observable inputs, including historical trading levels or sector yields, using market-based valuation techniques. The third party pricing service uses applications, models and pricing matrices that correlate security prices to benchmark securities which are adjusted for various inputs. Inputs include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark security bids and offers, TBA (to be announced) prices, monthly payment information, and reference data including market research. The pricing service may prioritize inputs differently on any given day for any security, and not all inputs are available for use in the evaluation process on any given day or for each security. The pricing vendor corroborates its finding on an on-going basis by monitoring market activity and events. | |||||||||||||||||||||||||
Third party pricing services provide security prices in good faith using rigorous methodologies; however, they do not warrant or guarantee the adequacy or accuracy of their information. Therefore, ASB utilizes a separate third party pricing vendor to corroborate security pricing of the first pricing vendor. If the pricing differential between the two pricing sources exceeds an established threshold, a pricing inquiry will be sent to both vendors or to an independent broker to determine a price that can be supported based on observable inputs found in the market. Such challenges to pricing are required infrequently and are generally resolved using additional security-specific information that was not available to a specific vendor. | |||||||||||||||||||||||||
Loans receivable. The estimated fair value of loans receivable is determined based on characteristics such as loan category, repricing features and remaining maturity, and includes prepayment estimates. | |||||||||||||||||||||||||
For residential real estate loans, fair values were estimated by discounting estimated cash flows using discount rates based on current industry pricing for loans with similar contractual characteristics and remaining maturity. | |||||||||||||||||||||||||
For other types of loans, fair values were estimated by discounting contractual cash flows using discount rates that reflect current industry pricing for loans with similar characteristics and remaining maturity. Where industry pricing is not available, discount rates are based on ASB’s current pricing for loans with similar characteristics and remaining maturity. | |||||||||||||||||||||||||
The fair value of all loans was adjusted to reflect current assessments of loan collectability. Also see “Fair value measurements on a nonrecurring basis” below. | |||||||||||||||||||||||||
Deposit liabilities. The fair value of savings, negotiable orders of withdrawal, demand and money market deposits was the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit was estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. | |||||||||||||||||||||||||
Other bank borrowings. Fair value was estimated by discounting the future cash flows using the current rates available for borrowings with similar credit terms and remaining maturities. | |||||||||||||||||||||||||
Long-term debt. Fair value was obtained from third-party financial services providers based on the current rates offered for debt of the same or similar remaining maturities and from discounting the future cash flows using the current rates offered for debt of the same or similar remaining maturities. | |||||||||||||||||||||||||
Derivative financial instruments. See “Fair value measurements on a recurring basis” below. | |||||||||||||||||||||||||
Off-balance sheet financial instruments. The fair value of loans serviced for others was calculated by discounting expected net income streams using discount rates that reflect industry pricing for similar assets. Expected net income streams were estimated based on industry assumptions regarding prepayment speeds and income and expenses associated with servicing residential mortgage loans for others. The fair value of commitments to originate loans was estimated based on the change in current primary market prices of new commitments. Since lines of credit can expire without being drawn and customers are under no obligation to utilize the lines, no fair value was assigned to unused lines of credit. The fair value of letters of credit was estimated based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements. | |||||||||||||||||||||||||
The estimated fair values of certain of the Company’s and the Utilities' financial instruments were as follows: | |||||||||||||||||||||||||
Estimated fair value | |||||||||||||||||||||||||
Carrying or | Quoted | Significant | Significant | ||||||||||||||||||||||
notional amount | prices in | other observable | unobservable | ||||||||||||||||||||||
active markets | inputs | inputs | |||||||||||||||||||||||
for identical assets | |||||||||||||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | |||||||||||||||
Available-for-sale investment and mortgage-related securities | 531,603 | — | 531,603 | — | 531,603 | ||||||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 75,063 | — | 75,063 | — | 75,063 | ||||||||||||||||||||
Loans receivable, net | 4,294,288 | — | — | 4,444,869 | 4,444,869 | ||||||||||||||||||||
Derivative assets | 17,011 | — | 217 | — | 217 | ||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||
Deposit liabilities | 4,533,797 | — | 4,534,177 | — | 4,534,177 | ||||||||||||||||||||
Short-term borrowings—other than bank | 150,576 | — | 150,576 | — | 150,576 | ||||||||||||||||||||
The Utilities' short-term borrowings (included in amount above) | 84,987 | — | 84,987 | — | 84,987 | ||||||||||||||||||||
Other bank borrowings | 263,204 | — | 271,872 | — | 271,872 | ||||||||||||||||||||
Long-term debt, net—other than bank | 1,517,946 | — | 1,626,159 | — | 1,626,159 | ||||||||||||||||||||
The Utilities' long-term debt, net (included in amount above) | 1,217,946 | — | 1,316,380 | — | 1,316,380 | ||||||||||||||||||||
Derivative liabilities | 10,207 | 23 | 4 | — | 27 | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | |||||||||||||||
Available-for-sale investment and mortgage-related securities | 529,007 | — | 529,007 | — | 529,007 | ||||||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 92,546 | — | 92,546 | — | 92,546 | ||||||||||||||||||||
Loans receivable, net | 4,115,415 | — | — | 4,211,290 | 4,211,290 | ||||||||||||||||||||
Derivative assets | 46,356 | 98 | 531 | — | 629 | ||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||
Deposit liabilities | 4,372,477 | — | 4,374,377 | — | 4,374,377 | ||||||||||||||||||||
Short-term borrowings—other than bank | 105,482 | — | 105,482 | — | 105,482 | ||||||||||||||||||||
Other bank borrowings | 244,514 | — | 256,029 | — | 256,029 | ||||||||||||||||||||
Long-term debt, net—other than bank | 1,492,945 | — | 1,508,425 | — | 1,508,425 | ||||||||||||||||||||
The Utilities' long-term debt, net (included in amount above) | 1,217,945 | — | 1,228,966 | — | 1,228,966 | ||||||||||||||||||||
Derivative liabilities | 4,732 | — | 26 | — | 26 | ||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, loan commitments and unused lines and letters of credit issued by ASB had notional amounts of $1.8 billion and $1.6 billion, respectively, and their estimated fair value on such dates were $0.5 million and $0.2 million, respectively. As of September 30, 2014 and December 31, 2013, loans serviced by ASB for others had notional amounts of $1.4 billion, and the estimated fair value of the servicing rights for such loans was $16.1 million and $15.7 million, respectively. | |||||||||||||||||||||||||
Fair value measurements on a recurring basis. | |||||||||||||||||||||||||
Securities. While securities held in ASB’s investment portfolio trade in active markets, they do not trade on listed exchanges nor do the specific holdings trade in quoted markets by dealers or brokers. All holdings are valued using market-based approaches that are based on exit prices that are taken from identical or similar market transactions, even in situations where trading volume may be low when compared with prior periods. Inputs to these valuation techniques reflect the assumptions that consider credit and nonperformance risk that market participants would use in pricing the asset based on market data obtained from independent sources. Available-for-sale securities were comprised of federal agency obligations and mortgage-backed securities and municipal bonds. | |||||||||||||||||||||||||
Derivative financial instruments. ASB enters into interest rate lock commitments (IRLC) for residential mortgage loans, which commit ASB to lend funds to a potential borrower at a specific interest rate and within a specified period of time. The estimated fair value of commitments to originate residential mortgage loans for sale is based on quoted prices for similar loans in active markets. IRLCs are classified as Level 2 measurements. | |||||||||||||||||||||||||
ASB utilizes forward commitments as economic hedges against potential changes in the values of the IRLCs and loans held for sale. To reduce the impact of price fluctuations of IRLC and mortgage loans held for sale, ASB will purchase to be announced (TBA) mortgage-backed securities forward commitments, mandatory and best effort commitments. These commitments help protect ASB's loan sale profit margin from fluctuations in interest rates. The changes in the fair value of these commitments are recognized as part of mortgage banking income on the consolidated statements of income. TBA forward commitments are classified as Level 1, and consist of publicly-traded debt securities for which identical fair values can be obtained through quoted market prices in active exchange markets. The fair values of ASB’s best efforts and mandatory delivery loan sale commitments are determined similarly to the IRLCs using quoted prices in the market place that are observable and are classified as Level 2 measurements. | |||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis were as follows: | |||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
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) | $ | — | $ | 10 | $ | — | $ | — | $ | 10 | $ | — | |||||||||||||
Available-for-sale securities (bank segment) | |||||||||||||||||||||||||
Mortgage-related securities-FNMA, FHLMC and GNMA | $ | — | $ | 425,307 | $ | — | $ | — | $ | 369,444 | $ | — | |||||||||||||
U.S. Treasury and federal agency obligations | — | 106,296 | — | — | 80,973 | — | |||||||||||||||||||
Municipal bonds | — | — | — | — | 78,590 | — | |||||||||||||||||||
$ | — | $ | 531,603 | $ | — | $ | — | $ | 529,007 | $ | — | ||||||||||||||
Derivative assets 1 | |||||||||||||||||||||||||
Interest rate lock commitments | $ | — | $ | 216 | $ | — | $ | — | $ | 488 | $ | — | |||||||||||||
Forward commitments | — | 1 | — | 98 | 43 | — | |||||||||||||||||||
$ | — | $ | 217 | $ | — | $ | 98 | $ | 531 | $ | — | ||||||||||||||
Derivative liabilities 1 | |||||||||||||||||||||||||
Interest rate lock commitments | $ | — | $ | 1 | $ | — | $ | — | $ | 24 | $ | — | |||||||||||||
Forward commitments | 23 | 3 | — | — | 2 | — | |||||||||||||||||||
$ | 23 | $ | 4 | $ | — | $ | — | $ | 26 | $ | — | ||||||||||||||
1 Derivatives are carried at fair value with changes in value reflected in the balance sheet in other assets or other liabilities and included in mortgage banking income. | |||||||||||||||||||||||||
Fair value measurements on a nonrecurring basis. From time to time, the Company and the Utilities may be required to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the writedowns of individual assets. ASB does not record loans at fair value on a recurring basis. However, from time to time, ASB records nonrecurring fair value adjustments based on the current appraised value of the collateral securing impaired loans or unobservable market assumptions. Unobservable assumptions reflect ASB’s own estimate of the fair value of collateral used in valuing impaired loans. ASB may also be required to measure goodwill at fair value on a nonrecurring basis. During the first nine months of 2014, it was not required that a measurement of the fair value of goodwill be calculated and goodwill was not measured at fair value. | |||||||||||||||||||||||||
Assets measured at fair value on a nonrecurring basis were as follows: | |||||||||||||||||||||||||
Fair value measurements | |||||||||||||||||||||||||
(in millions) | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Loans | |||||||||||||||||||||||||
30-Sep-14 | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||||||||
31-Dec-13 | 4 | — | — | 4 | |||||||||||||||||||||
Real estate acquired in settlement of loans | |||||||||||||||||||||||||
30-Sep-14 | $ | 1 | — | — | $ | 1 | |||||||||||||||||||
31-Dec-13 | — | — | — | — | |||||||||||||||||||||
At September 30, 2014 and 2013, there were no adjustments to fair value for ASB’s loans held for sale. | |||||||||||||||||||||||||
Residential loans. The fair value of ASB’s residential loans that were written down due to impairment was determined based on third party appraisals, which include the appraisers’ assumptions and judgment, and therefore, is classified as a Level 3 measurement. | |||||||||||||||||||||||||
Home equity lines of credit. The fair value of ASB’s home equity lines of credit that were written down due to impairment was determined based on third party appraisals, which include the appraisers’ assumptions and judgment, and therefore, is classified as a Level 3 measurement. | |||||||||||||||||||||||||
Commercial loans. The fair value of ASB’s commercial loans that were written down due to impairment was determined based on the value placed on the assets of the business, and therefore, is classified as a Level 3 measurement. | |||||||||||||||||||||||||
Real estate acquired in settlement of loans. The fair value of ASB’s real estate acquired in settlement of loans that were written down due to impairment was determined based on third party appraisals, which include the appraisers’ assumptions and judgment, and therefore, is classified as a Level 3 measurement. | |||||||||||||||||||||||||
For loans and real estate acquired in settlement of loans classified as Level 3 as of September 30, 2014 and December 31, 2013, the significant unobservable inputs used in the fair value measurement were as follows: | |||||||||||||||||||||||||
Significant unobservable | |||||||||||||||||||||||||
input value 1 | |||||||||||||||||||||||||
($ in thousands) | Fair value | Valuation technique | Significant unobservable input | Range | Weighted | ||||||||||||||||||||
Average | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Residential loans | $ | 1,928 | Fair value of property or collateral | Appraised value less 7% selling costs | 44-96% | 83% | |||||||||||||||||||
Commercial loans | 216 | Fair value of property or collateral | Fair value of business assets | 19% | |||||||||||||||||||||
Total loans | $ | 2,144 | |||||||||||||||||||||||
Real estate acquired in settlement of loans | $ | 554 | Fair value of property or collateral | Appraised value less 7% selling costs | 100% | 100% | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Residential loans | $ | 2,361 | Fair value of property or collateral | Appraised value less 7% selling costs | 44-96% | 87% | |||||||||||||||||||
Home equity lines of credit | 170 | Fair value of property or collateral | Appraised value less 7% selling costs | 45-50% | 50% | ||||||||||||||||||||
Commercial loans | 217 | Fair value of property or collateral | Fair value of business assets | 19% | |||||||||||||||||||||
Commercial loans | 1,668 | Discounted cash flows | Present value of expected future cash flows | 58% | |||||||||||||||||||||
Discount rate | 4.50% | ||||||||||||||||||||||||
Total loans | $ | 4,416 | |||||||||||||||||||||||
1 Represent percent of outstanding principal balance. | |||||||||||||||||||||||||
Significant increases (decreases) in any of those inputs in isolation would result in significantly higher (lower) fair value measurements. |
Cash_flows
Cash flows | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Cash flows | ' | ||||||||
Cash flows | |||||||||
Nine months ended September 30 | 2014 | 2013 | |||||||
(in millions) | |||||||||
Supplemental disclosures of cash flow information | |||||||||
HEI consolidated | |||||||||
Interest paid to non-affiliates | $ | 64 | $ | 62 | |||||
Income taxes paid | 31 | 6 | |||||||
Income taxes refunded | 24 | 4 | |||||||
Hawaiian Electric consolidated | |||||||||
Interest paid | 44 | 43 | |||||||
Income taxes paid | 6 | 6 | |||||||
Income taxes refunded | 8 | 32 | |||||||
Supplemental disclosures of noncash activities | |||||||||
HEI consolidated | |||||||||
Common stock dividends reinvested in HEI common stock 1 | — | 18 | |||||||
Increases in common stock related to director and officer compensatory plans | 4 | 3 | |||||||
Real estate acquired in settlement of loans | 2 | 4 | |||||||
Loans transferred from held-for-investment to held-for-sale | — | 25 | |||||||
Obligations to fund low income housing investments | 6 | — | |||||||
HEI consolidated and Hawaiian Electric consolidated | |||||||||
Additions to electric utility property, plant and equipment - unpaid invoices and other | 40 | 17 | |||||||
1 The amounts shown represent common stock dividends reinvested in HEI common stock under the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP) in noncash transactions. As of March 6, 2014, HEI began satisfying the share purchase requirements of the DRIP through open market purchases of its common stock rather than through new issuances. |
Recent_accounting_pronouncemen
Recent accounting pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent accounting pronouncements | ' |
Recent accounting pronouncements | |
Obligations resulting from joint and several liability. In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-04, “Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date,” which provides guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The guidance requires entities to measure these obligations as the sum of the amount the entity has agreed with co-obligors to pay and any additional amount it expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation as well as other information. | |
The Company and the Utilities retrospectively adopted ASU No. 2013-04 in the first quarter of 2014 and it did not have a material impact on the Company’s or the Utilities' results of operations, financial condition or liquidity. | |
Unrecognized tax benefits (UTBs). In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which requires the netting of UTBs against a deferred tax asset for a loss or other tax carryforwards that would apply in settlement of the uncertain tax positions. UTBs should be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. | |
The Company and the Utilities prospectively adopted ASU No. 2013-11 in the first quarter of 2014 and it did not have a material impact on the Company’s or the Utilities' results of operations, financial condition or liquidity. | |
Investments in Qualified Affordable Housing Projects. In January 2014, the FASB issued ASU No. 2014-01, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects,” which permits entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The amendments also require additional disclosures. | |
The Company has not determined whether it will retrospectively adopt ASU No. 2014-01 in 2014 or the first quarter of 2015, as early adoption is permitted, nor has it determined the impact of adoption on its results of operations, financial condition or liquidity. | |
Reclassification of loans upon foreclosure. In January 2014, the FASB issued ASU No. 2014-04, "Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” which clarifies when an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer loan. A creditor is considered to have received physical possession of residential real estate property collateralizing a consumer loan upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through a deed in lieu of foreclosure or through a similar legal agreement. The amendment also requires additional disclosures. | |
The Company plans to prospectively adopt ASU No. 2014-04 in the first quarter of 2015 and does not believe that such adoption will have a material impact on the Company’s results of operations, financial condition or liquidity. | |
Revenues from contracts. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: (Topic 606).” The core principle of the guidance in ASU No. 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract/s with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when, or as, the entity satisfies a performance obligation. | |
The Company will adopt ASU No. 2014-09 in the first quarter of 2017, but has not determined the method of adoption (full or modified retrospective application) nor the impact of adoption on its results of operations, financial condition or liquidity. | |
Repurchase agreements. In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosure,” which changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires additional disclosures about repurchase agreements and other similar transactions. The ASU requires a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. The ASU also requires expanded disclosures about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. | |
The Company will adopt ASU No. 2014-11 in the first quarter of 2015 and does not believe that such adoption will have a material impact on its results of operations, financial condition or liquidity. |
Credit_agreement_and_longterm_
Credit agreement and long-term debt | 9 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Credit agreement and long-term debt | ' |
Credit agreements and long-term debt | |
Credit agreements. | |
HEI. On April 2, 2014, HEI and a syndicate of nine financial institutions entered into an amended and restated revolving non-collateralized credit agreement (HEI Facility). The HEI Facility increased HEI’s line of credit to $150 million from $125 million, extended the term of the facility to April 2, 2019, and provided improved pricing compared to HEI’s prior facility. Under the HEI Facility, draws would generally bear interest, based on HEI’s current long-term credit ratings, at the “Adjusted LIBO Rate,” as defined in the agreement, plus 137.5 basis points and annual fees on undrawn commitments of 20 basis points. The HEI Facility contains updated provisions for pricing adjustments in the event of a long-term ratings change based on the HEI Facility’s ratings-based pricing grid. Certain modifications were made to incorporate some updated terms and conditions customary for facilities of this type. In addition, the HEI Consolidated Net Worth covenant, as defined in the original facility, was removed from the HEI Facility, leaving only one financial covenant (relating to HEI’s ratio of funded debt to total capitalization, each on a non-consolidated basis). Under the credit agreement, it is an event of default if HEI fails to maintain an unconsolidated “Capitalization Ratio” (funded debt) of 50% or less (actual ratio of 17% as of September 30, 2014, as calculated under the agreement) or if HEI no longer owns Hawaiian Electric. The HEI Facility does not contain clauses that would affect access to the facility by reason of a ratings downgrade, nor does it have broad “material adverse change” clauses, but it continues to contain customary conditions which must be met in order to draw on it, including compliance with covenants (such as covenants preventing HEI’s subsidiaries from entering into agreements that restrict the ability of the subsidiaries to pay dividends to, or to repay borrowings from, HEI). | |
The facility will be maintained to support the issuance of commercial paper, but also may be drawn to repay HEI’s short-term and long-term indebtedness, to make investments in or loans to subsidiaries and for HEI’s working capital and general corporate purposes. | |
Hawaiian Electric. On April 2, 2014, Hawaiian Electric and a syndicate of nine financial institutions entered into an amended and restated revolving non-collateralized credit agreement (Hawaiian Electric Facility). The Hawaiian Electric Facility increased Hawaiian Electric’s line of credit to $200 million from $175 million, provided for a term of the facility to April 1, 2015 (but which term is to be extended to up to April 2, 2019 upon approval by the PUC during the initial term, which approval is currently being requested), and provided improved pricing compared to Hawaiian Electric’s prior facility. Under the Hawaiian Electric Facility, draws would generally bear interest, based on Hawaiian Electric’s current long-term credit ratings, at the “Adjusted LIBO Rate,” as defined in the agreement, plus 125 basis points and annual fees on undrawn commitments of 17.5 basis points. The Hawaiian Electric Facility contains updated provisions for pricing adjustments in the event of a long-term ratings change based on the Hawaiian Electric Facility’s ratings-based pricing grid. Certain modifications were made to incorporate some updated terms and conditions customary for facilities of this type. The Hawaiian Electric Facility does not contain clauses that would affect access to the facility by reason of a ratings downgrade, nor does it have broad “material adverse change” clauses, but it continues to contain customary conditions which must be met in order to draw on it, including compliance with several covenants (such as covenants preventing its subsidiaries from entering into agreements that restrict the ability of the subsidiaries to pay dividends to, or to repay borrowings from, Hawaiian Electric, and restricting its ability as well as the ability of any of its subsidiaries to guarantee additional indebtedness of the subsidiaries if such additional debt would cause the subsidiary’s “Consolidated Subsidiary Funded Debt to Capitalization Ratio” to exceed 65% (ratio of 41% for Hawaii Electric Light and 43% for Maui Electric as of September 30, 2014, as calculated under the agreement)). In addition to customary defaults, Hawaiian Electric’s failure to maintain its financial ratios, as defined in its credit agreement, or meet other requirements may result in an event of default. For example, under the credit agreement, it is an event of default if Hawaiian Electric fails to maintain a “Consolidated Capitalization Ratio” (equity) of at least 35% (ratio of 55% as of September 30, 2014, as calculated under the credit agreement), or if Hawaiian Electric is no longer owned by HEI. | |
The credit facility will be maintained to support the issuance of commercial paper, but also may be drawn to repay Hawaiian Electric’s short-term indebtedness, to make loans to subsidiaries and for Hawaiian Electric’s capital expenditures, working capital and general corporate purposes. | |
Changes in long-term debt. | |
May 2014 loan. On May 2, 2014, HEI entered into a loan agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd., Royal Bank of Canada and U.S. Bank, National Association, which agreement includes the same financial covenant and customary conditions as the HEI credit agreement described above. On May 2, 2014, HEI drew a $125 million Eurodollar term loan for a term of two years and at a resetting interest rate ranging from 1.12% to 1.14% through September 30, 2014. The proceeds from the term loan were used to pay-off $100 million of 6.51% medium term notes at maturity on May 5, 2014, pay down maturing commercial paper and for general corporate purposes. |
Basis_of_presentation_Basis_of
Basis of presentation - Basis of presentation (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Schedule of effects of this revision on previous disclosures | ' | ||||||||||||
The table below illustrates the effects of the revisions on the previously filed financial statements: | |||||||||||||
As previously | As | ||||||||||||
(in thousands) | filed | revised | Difference | ||||||||||
HEI consolidated | |||||||||||||
Consolidated Statements of Income | |||||||||||||
Three months ended September 30, 2013 | |||||||||||||
Revenues | $ | 831,229 | $ | 829,168 | $ | (2,061 | ) | ||||||
Operating income | 90,099 | 88,038 | (2,061 | ) | |||||||||
Interest expense, net—other than on deposit liabilities and other bank borrowings | (20,304 | ) | (19,043 | ) | 1,261 | ||||||||
Income before income taxes | 71,548 | 70,748 | (800 | ) | |||||||||
Income taxes | 22,841 | 22,041 | (800 | ) | |||||||||
Nine months ended September 30, 2013 | |||||||||||||
Revenues | 2,412,023 | 2,405,967 | (6,056 | ) | |||||||||
Operating income | 243,126 | 237,070 | (6,056 | ) | |||||||||
Interest expense, net—other than on deposit liabilities and other bank borrowings | (59,705 | ) | (56,216 | ) | 3,489 | ||||||||
Income before income taxes | 189,077 | 186,510 | (2,567 | ) | |||||||||
Income taxes | 65,157 | 62,590 | (2,567 | ) | |||||||||
Consolidated Balance Sheets | |||||||||||||
31-Dec-13 | |||||||||||||
Property, plant and equipment, net of accumulated depreciation | 3,858,947 | 3,865,514 | 6,567 | ||||||||||
Accumulated depreciation | (2,191,199 | ) | (2,192,422 | ) | (1,223 | ) | |||||||
Other assets | 519,194 | 512,627 | (6,567 | ) | |||||||||
Hawaiian Electric consolidated | |||||||||||||
Consolidated Balance Sheets | |||||||||||||
31-Dec-13 | |||||||||||||
Other assets | 73,993 | 67,426 | (6,567 | ) | |||||||||
Segment_financial_information_
Segment financial information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of segment financial information | ' | ||||||||||||||||
(in thousands) | Electric utility | Bank | Other | Total | |||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||
Revenues from external customers | $ | 803,559 | $ | 63,536 | $ | 1 | $ | 867,096 | |||||||||
Intersegment revenues (eliminations) | 6 | — | (6 | ) | — | ||||||||||||
Revenues | 803,565 | 63,536 | (5 | ) | 867,096 | ||||||||||||
Income (loss) before income taxes | 62,419 | 19,572 | (7,382 | ) | 74,609 | ||||||||||||
Income taxes (benefit) | 23,042 | 6,312 | (3,031 | ) | 26,323 | ||||||||||||
Net income (loss) | 39,377 | 13,260 | (4,351 | ) | 48,286 | ||||||||||||
Preferred stock dividends of subsidiaries | 498 | — | (27 | ) | 471 | ||||||||||||
Net income (loss) for common stock | 38,879 | 13,260 | (4,324 | ) | 47,815 | ||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||
Revenues from external customers | $ | 2,262,038 | $ | 187,771 | $ | (307 | ) | $ | 2,449,502 | ||||||||
Intersegment revenues (eliminations) | 18 | — | (18 | ) | — | ||||||||||||
Revenues | 2,262,056 | 187,771 | (325 | ) | 2,449,502 | ||||||||||||
Income (loss) before income taxes | 174,711 | 58,244 | (23,110 | ) | 209,845 | ||||||||||||
Income taxes (benefit) | 64,686 | 18,769 | (10,190 | ) | 73,265 | ||||||||||||
Net income (loss) | 110,025 | 39,475 | (12,920 | ) | 136,580 | ||||||||||||
Preferred stock dividends of subsidiaries | 1,496 | — | (79 | ) | 1,417 | ||||||||||||
Net income (loss) for common stock | 108,529 | 39,475 | (12,841 | ) | 135,163 | ||||||||||||
Assets (at September 30, 2014) | 5,225,162 | 5,442,336 | 2,973 | 10,670,471 | |||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||
Revenues from external customers | $ | 764,048 | $ | 65,058 | $ | 62 | $ | 829,168 | |||||||||
Intersegment revenues (eliminations) | 6 | — | (6 | ) | — | ||||||||||||
Revenues | 764,054 | 65,058 | 56 | 829,168 | |||||||||||||
Income (loss) before income taxes | 56,573 | 22,808 | (8,633 | ) | 70,748 | ||||||||||||
Income taxes (benefit) | 18,258 | 7,532 | (3,749 | ) | 22,041 | ||||||||||||
Net income (loss) | 38,315 | 15,276 | (4,884 | ) | 48,707 | ||||||||||||
Preferred stock dividends of subsidiaries | 498 | — | (27 | ) | 471 | ||||||||||||
Net income (loss) for common stock | 37,817 | 15,276 | (4,857 | ) | 48,236 | ||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Revenues from external customers | $ | 2,210,002 | $ | 195,841 | $ | 124 | $ | 2,405,967 | |||||||||
Intersegment revenues (eliminations) | 18 | — | (18 | ) | — | ||||||||||||
Revenues | 2,210,020 | 195,841 | 106 | 2,405,967 | |||||||||||||
Income (loss) before income taxes | 141,645 | 69,265 | (24,400 | ) | 186,510 | ||||||||||||
Income taxes (benefit) | 49,210 | 23,915 | (10,535 | ) | 62,590 | ||||||||||||
Net income (loss) | 92,435 | 45,350 | (13,865 | ) | 123,920 | ||||||||||||
Preferred stock dividends of subsidiaries | 1,496 | — | (79 | ) | 1,417 | ||||||||||||
Net income (loss) for common stock | 90,939 | 45,350 | (13,786 | ) | 122,503 | ||||||||||||
Assets (at December 31, 2013) | 5,087,129 | 5,243,824 | 9,091 | 10,340,044 | |||||||||||||
Electric_utility_subsidiary_Ta
Electric utility subsidiary (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Regulatory projects and legal obligations | ' | ||||||||||||||||||||
Schedule of consolidating statements of income (loss) | ' | ||||||||||||||||||||
Selected financial information | |||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||
Statements of Income Data | |||||||||||||||||||||
Three months | Nine months | ||||||||||||||||||||
ended September 30 | ended September 30 | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Interest and dividend income | |||||||||||||||||||||
Interest and fees on loans | $ | 45,532 | $ | 43,337 | $ | 133,065 | $ | 129,564 | |||||||||||||
Interest and dividends on investment and mortgage-related securities | 2,773 | 3,025 | 8,758 | 9,723 | |||||||||||||||||
Total interest and dividend income | 48,305 | 46,362 | 141,823 | 139,287 | |||||||||||||||||
Interest expense | |||||||||||||||||||||
Interest on deposit liabilities | 1,312 | 1,262 | 3,774 | 3,870 | |||||||||||||||||
Interest on other borrowings | 1,438 | 1,206 | 4,263 | 3,548 | |||||||||||||||||
Total interest expense | 2,750 | 2,468 | 8,037 | 7,418 | |||||||||||||||||
Net interest income | 45,555 | 43,894 | 133,786 | 131,869 | |||||||||||||||||
Provision for loan losses | 1,550 | 54 | 3,566 | 953 | |||||||||||||||||
Net interest income after provision for loan losses | 44,005 | 43,840 | 130,220 | 130,916 | |||||||||||||||||
Noninterest income | |||||||||||||||||||||
Fees from other financial services | 5,642 | 5,728 | 15,987 | 21,367 | |||||||||||||||||
Fee income on deposit liabilities | 5,109 | 4,819 | 14,175 | 13,566 | |||||||||||||||||
Fee income on other financial products | 1,971 | 2,714 | 6,325 | 6,288 | |||||||||||||||||
Mortgage banking income | 875 | 1,547 | 1,749 | 6,896 | |||||||||||||||||
Gain on sale of securities | — | — | 2,847 | 1,226 | |||||||||||||||||
Other income, net | 1,634 | 3,888 | 4,865 | 7,211 | |||||||||||||||||
Total noninterest income | 15,231 | 18,696 | 45,948 | 56,554 | |||||||||||||||||
Noninterest expense | |||||||||||||||||||||
Compensation and employee benefits | 19,892 | 20,564 | 60,050 | 60,715 | |||||||||||||||||
Occupancy | 4,517 | 4,208 | 12,959 | 12,550 | |||||||||||||||||
Data processing | 2,684 | 2,168 | 8,715 | 7,982 | |||||||||||||||||
Services | 2,580 | 2,424 | 7,708 | 6,855 | |||||||||||||||||
Equipment | 1,672 | 1,825 | 4,926 | 5,469 | |||||||||||||||||
Office supplies, printing and postage | 1,415 | 907 | 4,487 | 2,806 | |||||||||||||||||
Marketing | 948 | 692 | 2,690 | 2,054 | |||||||||||||||||
Communication | 412 | 479 | 1,363 | 1,374 | |||||||||||||||||
Other expense | 5,544 | 6,461 | 15,026 | 18,400 | |||||||||||||||||
Total noninterest expense | 39,664 | 39,728 | 117,924 | 118,205 | |||||||||||||||||
Income before income taxes | 19,572 | 22,808 | 58,244 | 69,265 | |||||||||||||||||
Income taxes | 6,312 | 7,532 | 18,769 | 23,915 | |||||||||||||||||
Net income | $ | 13,260 | $ | 15,276 | $ | 39,475 | $ | 45,350 | |||||||||||||
Schedule of consolidating balance sheets | ' | ||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||
Balance Sheets Data | |||||||||||||||||||||
(in thousands) | 30-Sep-14 | 31-Dec-13 | |||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and due from banks | $ | 98,879 | $ | 108,998 | |||||||||||||||||
Interest-bearing deposits | 74,654 | 47,605 | |||||||||||||||||||
Available-for-sale investment and mortgage-related securities | 531,603 | 529,007 | |||||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 75,063 | 92,546 | |||||||||||||||||||
Loans receivable held for investment | 4,335,421 | 4,150,229 | |||||||||||||||||||
Allowance for loan losses | (43,461 | ) | (40,116 | ) | |||||||||||||||||
Loans receivable held for investment, net | 4,291,960 | 4,110,113 | |||||||||||||||||||
Loans held for sale, at lower of cost or fair value | 2,328 | 5,302 | |||||||||||||||||||
Other | 285,659 | 268,063 | |||||||||||||||||||
Goodwill | 82,190 | 82,190 | |||||||||||||||||||
Total assets | $ | 5,442,336 | $ | 5,243,824 | |||||||||||||||||
Liabilities and shareholder’s equity | |||||||||||||||||||||
Deposit liabilities—noninterest-bearing | $ | 1,298,726 | $ | 1,214,418 | |||||||||||||||||
Deposit liabilities—interest-bearing | 3,235,071 | 3,158,059 | |||||||||||||||||||
Other borrowings | 263,204 | 244,514 | |||||||||||||||||||
Other | 107,814 | 105,679 | |||||||||||||||||||
Total liabilities | 4,904,815 | 4,722,670 | |||||||||||||||||||
Commitments and contingencies (see “Litigation” section) | |||||||||||||||||||||
Common stock | 1 | 1 | |||||||||||||||||||
Additional paid in capital | 337,862 | 336,053 | |||||||||||||||||||
Retained earnings | 209,522 | 197,297 | |||||||||||||||||||
Accumulated other comprehensive loss, net of tax benefits | |||||||||||||||||||||
Net unrealized losses on securities | $ | (1,972 | ) | $ | (3,663 | ) | |||||||||||||||
Retirement benefit plans | (7,892 | ) | (9,864 | ) | (8,534 | ) | (12,197 | ) | |||||||||||||
Total shareholder’s equity | 537,521 | 521,154 | |||||||||||||||||||
Total liabilities and shareholder’s equity | $ | 5,442,336 | $ | 5,243,824 | |||||||||||||||||
Other assets | |||||||||||||||||||||
Bank-owned life insurance | $ | 133,066 | $ | 129,963 | |||||||||||||||||
Premises and equipment, net | 70,105 | 67,766 | |||||||||||||||||||
Prepaid expenses | 3,941 | 3,616 | |||||||||||||||||||
Accrued interest receivable | 13,436 | 13,133 | |||||||||||||||||||
Mortgage-servicing rights | 11,524 | 11,687 | |||||||||||||||||||
Low-income housing equity investments | 22,825 | 14,543 | |||||||||||||||||||
Real estate acquired in settlement of loans, net | 580 | 1,205 | |||||||||||||||||||
Other | 30,182 | 26,150 | |||||||||||||||||||
$ | 285,659 | $ | 268,063 | ||||||||||||||||||
Other liabilities | |||||||||||||||||||||
Accrued expenses | $ | 24,733 | $ | 19,989 | |||||||||||||||||
Federal and state income taxes payable | 35,096 | 37,807 | |||||||||||||||||||
Cashier’s checks | 23,754 | 21,110 | |||||||||||||||||||
Advance payments by borrowers | 5,013 | 9,647 | |||||||||||||||||||
Other | 19,218 | 17,126 | |||||||||||||||||||
$ | 107,814 | $ | 105,679 | ||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||||||||||||||
Regulatory projects and legal obligations | ' | ||||||||||||||||||||
Schedule of purchases from all IPPs | ' | ||||||||||||||||||||
Power purchase agreements. As of September 30, 2014, the Utilities had six purchase power agreements (PPAs) for firm capacity and several other PPAs with variable generation independent power producers (IPPs) and Schedule Q providers (i.e., customers with cogeneration and/or small power production facilities with a capacity of 100 kilowatts (kWs) or less who buy power from or sell power to the Utilities), none of which are currently required to be consolidated as VIEs. The PPAs with AES Hawaii, Inc. (AES Hawaii), Kalaeloa Partners, L.P. (Kalaeloa), Hamakua Energy Partners, L.P. (HEP) and Hpower comprise approximately 90% of IPP contractual firm capacity available to the Utilities. Purchases from all IPPs were as follows: | |||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
AES Hawaii | $ | 38 | $ | 38 | $ | 107 | $ | 98 | |||||||||||||
Kalaeloa | 73 | 80 | 214 | 223 | |||||||||||||||||
HEP | 16 | 15 | 36 | 36 | |||||||||||||||||
Hpower | 18 | 17 | 50 | 44 | |||||||||||||||||
Other IPPs | 48 | 45 | 139 | 126 | |||||||||||||||||
Total IPPs | $ | 193 | $ | 195 | $ | 546 | $ | 527 | |||||||||||||
Schedule of changes in asset retirement obligation | ' | ||||||||||||||||||||
Changes to the ARO liability included in “Other liabilities” on Hawaiian Electric’s balance sheet were as follows: | |||||||||||||||||||||
Nine months ended September 30 | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Balance, beginning of period | $ | 43,106 | $ | 48,431 | |||||||||||||||||
Accretion expense | 816 | 833 | |||||||||||||||||||
Liabilities incurred | — | — | |||||||||||||||||||
Liabilities settled | (11,338 | ) | (1,165 | ) | |||||||||||||||||
Revisions in estimated cash flows | — | (916 | ) | ||||||||||||||||||
Balance, end of period | $ | 32,584 | $ | 47,183 | |||||||||||||||||
Schedule of consolidating statements of income (loss) | ' | ||||||||||||||||||||
Consolidating Statement of Income (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Revenues | $ | 579,777 | 111,154 | 112,656 | — | (22 | ) | $ | 803,565 | ||||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 229,068 | 29,555 | 50,809 | — | — | 309,432 | |||||||||||||||
Purchased power | 142,121 | 34,166 | 16,595 | — | — | 192,882 | |||||||||||||||
Other operation and maintenance | 71,584 | 19,837 | 16,892 | — | — | 108,313 | |||||||||||||||
Depreciation | 27,302 | 8,975 | 5,317 | — | — | 41,594 | |||||||||||||||
Taxes, other than income taxes | 54,412 | 10,607 | 10,169 | — | — | 75,188 | |||||||||||||||
Total expenses | 524,487 | 103,140 | 99,782 | — | — | 727,409 | |||||||||||||||
Operating income | 55,290 | 8,014 | 12,874 | — | (22 | ) | 76,156 | ||||||||||||||
Allowance for equity funds used during construction | 1,668 | 142 | 127 | — | — | 1,937 | |||||||||||||||
Equity in earnings of subsidiaries | 9,800 | — | — | — | (9,800 | ) | — | ||||||||||||||
Interest expense and other charges, net | (11,196 | ) | (2,811 | ) | (2,429 | ) | — | 22 | (16,414 | ) | |||||||||||
Allowance for borrowed funds used during construction | 634 | 54 | 52 | — | — | 740 | |||||||||||||||
Income before income taxes | 56,196 | 5,399 | 10,624 | — | (9,800 | ) | 62,419 | ||||||||||||||
Income taxes | 17,047 | 1,965 | 4,030 | — | — | 23,042 | |||||||||||||||
Net income | 39,149 | 3,434 | 6,594 | — | (9,800 | ) | 39,377 | ||||||||||||||
Preferred stock dividends of subsidiaries | — | 133 | 95 | — | — | 228 | |||||||||||||||
Net income attributable to Hawaiian Electric | 39,149 | 3,301 | 6,499 | — | (9,800 | ) | 39,149 | ||||||||||||||
Preferred stock dividends of Hawaiian Electric | 270 | — | — | — | — | 270 | |||||||||||||||
Net income for common stock | $ | 38,879 | 3,301 | 6,499 | — | (9,800 | ) | $ | 38,879 | ||||||||||||
Consolidating Statement of Income (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Revenues | $ | 1,576,068 | 320,330 | 313,725 | — | (103 | ) | $ | 2,210,020 | ||||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 631,824 | 94,120 | 151,794 | — | — | 877,738 | |||||||||||||||
Purchased power | 389,706 | 93,880 | 43,083 | — | — | 526,669 | |||||||||||||||
Other operation and maintenance | 212,474 | 46,158 | 42,089 | 2 | — | 300,723 | |||||||||||||||
Depreciation | 75,150 | 25,641 | 15,074 | — | — | 115,865 | |||||||||||||||
Taxes, other than income taxes | 149,282 | 30,113 | 29,681 | — | — | 209,076 | |||||||||||||||
Total expenses | 1,458,436 | 289,912 | 281,721 | 2 | — | 2,030,071 | |||||||||||||||
Operating income (loss) | 117,632 | 30,418 | 32,004 | (2 | ) | (103 | ) | 179,949 | |||||||||||||
Allowance for equity funds used during construction | 3,144 | 552 | 334 | — | — | 4,030 | |||||||||||||||
Equity in earnings of subsidiaries | 30,446 | — | — | — | (30,446 | ) | — | ||||||||||||||
Interest expense and other charges, net | (28,723 | ) | (8,566 | ) | (6,774 | ) | — | 103 | (43,960 | ) | |||||||||||
Allowance for borrowed funds used during construction | 1,268 | 226 | 132 | — | — | 1,626 | |||||||||||||||
Income (loss) before income taxes | 123,767 | 22,630 | 25,696 | (2 | ) | (30,446 | ) | 141,645 | |||||||||||||
Income taxes | 32,018 | 7,486 | 9,706 | — | — | 49,210 | |||||||||||||||
Net income (loss) | 91,749 | 15,144 | 15,990 | (2 | ) | (30,446 | ) | 92,435 | |||||||||||||
Preferred stock dividends of subsidiaries | — | 400 | 286 | — | — | 686 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 91,749 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | 91,749 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 810 | — | — | — | — | 810 | |||||||||||||||
Net income (loss) for common stock | $ | 90,939 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | $ | 90,939 | |||||||||||
Consolidating Statement of Income (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Revenues | $ | 1,623,223 | 319,629 | 319,265 | — | (61 | ) | $ | 2,262,056 | ||||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 628,164 | 92,234 | 145,591 | — | — | 865,989 | |||||||||||||||
Purchased power | 406,895 | 91,827 | 47,399 | — | — | 546,121 | |||||||||||||||
Other operation and maintenance | 199,091 | 48,701 | 47,691 | — | — | 295,483 | |||||||||||||||
Depreciation | 81,903 | 26,926 | 15,961 | — | — | 124,790 | |||||||||||||||
Taxes, other than income taxes | 152,545 | 30,127 | 30,111 | — | — | 212,783 | |||||||||||||||
Total expenses | 1,468,598 | 289,815 | 286,753 | — | — | 2,045,166 | |||||||||||||||
Operating income | 154,625 | 29,814 | 32,512 | — | (61 | ) | 216,890 | ||||||||||||||
Allowance for equity funds used during construction | 4,557 | 328 | 48 | — | — | 4,933 | |||||||||||||||
Equity in earnings of subsidiaries | 28,576 | — | — | — | (28,576 | ) | — | ||||||||||||||
Interest expense and other charges, net | (33,236 | ) | (8,411 | ) | (7,403 | ) | — | 61 | (48,989 | ) | |||||||||||
Allowance for borrowed funds used during construction | 1,728 | 126 | 23 | — | — | 1,877 | |||||||||||||||
Income before income taxes | 156,250 | 21,857 | 25,180 | — | (28,576 | ) | 174,711 | ||||||||||||||
Income taxes | 46,911 | 8,149 | 9,626 | — | — | 64,686 | |||||||||||||||
Net income | 109,339 | 13,708 | 15,554 | — | (28,576 | ) | 110,025 | ||||||||||||||
Preferred stock dividends of subsidiaries | — | 400 | 286 | — | — | 686 | |||||||||||||||
Net income attributable to Hawaiian Electric | 109,339 | 13,308 | 15,268 | — | (28,576 | ) | 109,339 | ||||||||||||||
Preferred stock dividends of Hawaiian Electric | 810 | — | — | — | — | 810 | |||||||||||||||
Net income for common stock | $ | 108,529 | 13,308 | 15,268 | — | (28,576 | ) | $ | 108,529 | ||||||||||||
Consolidating Statement of Income (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Revenues | $ | 547,434 | 107,957 | 108,699 | — | (36 | ) | $ | 764,054 | ||||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 206,478 | 27,615 | 49,267 | — | — | 283,360 | |||||||||||||||
Purchased power | 143,280 | 34,480 | 17,101 | — | — | 194,861 | |||||||||||||||
Other operation and maintenance | 71,498 | 16,793 | 16,221 | 1 | — | 104,513 | |||||||||||||||
Depreciation | 25,442 | 8,547 | 5,006 | — | — | 38,995 | |||||||||||||||
Taxes, other than income taxes | 51,781 | 10,457 | 10,234 | — | — | 72,472 | |||||||||||||||
Total expenses | 498,479 | 97,892 | 97,829 | 1 | — | 694,201 | |||||||||||||||
Operating income (loss) | 48,955 | 10,065 | 10,870 | (1 | ) | (36 | ) | 69,853 | |||||||||||||
Allowance for equity funds used during construction | 914 | 222 | 119 | — | — | 1,255 | |||||||||||||||
Equity in earnings of subsidiaries | 10,794 | — | — | — | (10,794 | ) | — | ||||||||||||||
Interest expense and other charges, net | (9,883 | ) | (2,920 | ) | (2,266 | ) | — | 36 | (15,033 | ) | |||||||||||
Allowance for borrowed funds used during construction | 358 | 91 | 49 | — | — | 498 | |||||||||||||||
Income (loss) before income taxes | 51,138 | 7,458 | 8,772 | (1 | ) | (10,794 | ) | 56,573 | |||||||||||||
Income taxes | 13,051 | 1,881 | 3,326 | — | — | 18,258 | |||||||||||||||
Net income (loss) | 38,087 | 5,577 | 5,446 | (1 | ) | (10,794 | ) | 38,315 | |||||||||||||
Preferred stock dividends of subsidiaries | — | 133 | 95 | — | — | 228 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 38,087 | 5,444 | 5,351 | (1 | ) | (10,794 | ) | 38,087 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 270 | — | — | — | — | 270 | |||||||||||||||
Net income (loss) for common stock | $ | 37,817 | 5,444 | 5,351 | (1 | ) | (10,794 | ) | $ | 37,817 | |||||||||||
Schedule of consolidating statement of comprehensive income (loss) | ' | ||||||||||||||||||||
Consolidating Statement of Comprehensive Income (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income for common stock | $ | 38,879 | 3,301 | 6,499 | — | (9,800 | ) | $ | 38,879 | ||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 2,552 | 317 | 272 | — | (589 | ) | 2,552 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (2,542 | ) | (319 | ) | (272 | ) | — | 591 | (2,542 | ) | |||||||||||
Other comprehensive income (loss), net of taxes | 10 | (2 | ) | — | — | 2 | 10 | ||||||||||||||
Comprehensive income attributable to common shareholder | $ | 38,889 | 3,299 | 6,499 | — | (9,798 | ) | $ | 38,889 | ||||||||||||
Consolidating Statement of Comprehensive Income (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income for common stock | $ | 108,529 | 13,308 | 15,268 | — | (28,576 | ) | $ | 108,529 | ||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 7,659 | 953 | 817 | — | (1,770 | ) | 7,659 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (7,627 | ) | (955 | ) | (817 | ) | — | 1,772 | (7,627 | ) | |||||||||||
Other comprehensive income (loss), net of taxes | 32 | (2 | ) | — | — | 2 | 32 | ||||||||||||||
Comprehensive income attributable to common shareholder | $ | 108,561 | 13,306 | 15,268 | — | (28,574 | ) | $ | 108,561 | ||||||||||||
Consolidating Statement of Comprehensive Income (Loss) (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income (loss) for common stock | $ | 37,817 | 5,444 | 5,351 | (1 | ) | (10,794 | ) | $ | 37,817 | |||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 5,173 | 720 | 639 | — | (1,359 | ) | 5,173 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (5,156 | ) | (721 | ) | (639 | ) | — | 1,360 | (5,156 | ) | |||||||||||
Other comprehensive income (loss), net of taxes | 17 | (1 | ) | — | — | 1 | 17 | ||||||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 37,834 | 5,443 | 5,351 | (1 | ) | (10,793 | ) | $ | 37,834 | |||||||||||
Consolidating Statement of Comprehensive Income (Loss) (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income (loss) for common stock | $ | 90,939 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | $ | 90,939 | |||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 15,520 | 2,160 | 1,918 | — | (4,078 | ) | 15,520 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (15,468 | ) | (2,162 | ) | (1,918 | ) | — | 4,080 | (15,468 | ) | |||||||||||
Other comprehensive income (loss), net of taxes | 52 | (2 | ) | — | — | 2 | 52 | ||||||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 90,991 | 14,742 | 15,704 | (2 | ) | (30,444 | ) | $ | 90,991 | |||||||||||
Schedule of consolidating balance sheets | ' | ||||||||||||||||||||
Consolidating Balance Sheet (unaudited) | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consoli- | Hawaiian Electric | |||||||||||||||
subsidiaries | dating | Consolidated | |||||||||||||||||||
adjustments | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||
Utility property, plant and equipment | |||||||||||||||||||||
Land | $ | 43,407 | 5,460 | 3,016 | — | — | $ | 51,883 | |||||||||||||
Plant and equipment | 3,558,569 | 1,136,923 | 1,006,383 | — | — | 5,701,875 | |||||||||||||||
Less accumulated depreciation | (1,222,129 | ) | (453,721 | ) | (435,379 | ) | — | — | (2,111,229 | ) | |||||||||||
Construction in progress | 124,494 | 7,709 | 11,030 | — | — | 143,233 | |||||||||||||||
Utility property, plant and equipment, net | 2,504,341 | 696,371 | 585,050 | — | — | 3,785,762 | |||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation | 4,953 | 82 | 1,532 | — | — | 6,567 | |||||||||||||||
Total property, plant and equipment, net | 2,509,294 | 696,453 | 586,582 | — | — | 3,792,329 | |||||||||||||||
Investment in wholly owned subsidiaries, at equity | 523,674 | — | — | — | (523,674 | ) | — | ||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 61,245 | 1,326 | 153 | 101 | — | 62,825 | |||||||||||||||
Advances to affiliates | 6,839 | 1,000 | — | — | (7,839 | ) | — | ||||||||||||||
Customer accounts receivable, net | 121,282 | 28,088 | 26,078 | — | — | 175,448 | |||||||||||||||
Accrued unbilled revenues, net | 107,752 | 17,100 | 19,272 | — | — | 144,124 | |||||||||||||||
Other accounts receivable, net | 16,373 | 4,265 | 2,451 | — | (9,027 | ) | 14,062 | ||||||||||||||
Fuel oil stock, at average cost | 99,613 | 14,178 | 20,296 | — | — | 134,087 | |||||||||||||||
Materials and supplies, at average cost | 37,377 | 6,883 | 14,784 | — | — | 59,044 | |||||||||||||||
Prepayments and other | 29,798 | 8,334 | 16,140 | — | (1,415 | ) | 52,857 | ||||||||||||||
Regulatory assets | 54,979 | 6,931 | 7,828 | — | — | 69,738 | |||||||||||||||
Total current assets | 535,258 | 88,105 | 107,002 | 101 | (18,281 | ) | 712,185 | ||||||||||||||
Other long-term assets | |||||||||||||||||||||
Regulatory assets | 381,346 | 64,552 | 60,288 | — | — | 506,186 | |||||||||||||||
Unamortized debt expense | 6,051 | 1,580 | 1,372 | — | — | 9,003 | |||||||||||||||
Other | 42,163 | 11,270 | 13,993 | — | — | 67,426 | |||||||||||||||
Total other long-term assets | 429,560 | 77,402 | 75,653 | — | — | 582,615 | |||||||||||||||
Total assets | $ | 3,997,786 | 861,960 | 769,237 | 101 | (541,955 | ) | $ | 5,087,129 | ||||||||||||
Capitalization and liabilities | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||
Common stock equity | $ | 1,593,564 | 274,802 | 248,771 | 101 | (523,674 | ) | $ | 1,593,564 | ||||||||||||
Cumulative preferred stock—not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | |||||||||||||||
Long-term debt, net | 830,547 | 189,998 | 186,000 | — | — | 1,206,545 | |||||||||||||||
Total capitalization | 2,446,404 | 471,800 | 439,771 | 101 | (523,674 | ) | 2,834,402 | ||||||||||||||
Current liabilities | |||||||||||||||||||||
Current portion of long-term debt | — | 11,400 | — | — | — | 11,400 | |||||||||||||||
Short-term borrowings from affiliate | 1,000 | — | 6,839 | — | (7,839 | ) | — | ||||||||||||||
Accounts payable | 145,062 | 24,383 | 20,114 | — | — | 189,559 | |||||||||||||||
Interest and preferred dividends payable | 15,190 | 3,885 | 2,585 | — | (8 | ) | 21,652 | ||||||||||||||
Taxes accrued | 175,790 | 37,899 | 37,171 | — | (1,415 | ) | 249,445 | ||||||||||||||
Regulatory liabilities | 1,705 | — | 211 | — | — | 1,916 | |||||||||||||||
Other | 48,443 | 9,033 | 15,424 | — | (9,019 | ) | 63,881 | ||||||||||||||
Total current liabilities | 387,190 | 86,600 | 82,344 | — | (18,281 | ) | 537,853 | ||||||||||||||
Deferred credits and other liabilities | |||||||||||||||||||||
Deferred income taxes | 359,621 | 79,947 | 67,593 | — | — | 507,161 | |||||||||||||||
Regulatory liabilities | 235,786 | 76,475 | 35,122 | — | — | 347,383 | |||||||||||||||
Unamortized tax credits | 44,931 | 14,245 | 14,363 | — | — | 73,539 | |||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 202,396 | 28,427 | 31,339 | — | — | 262,162 | |||||||||||||||
Other | 63,374 | 14,703 | 13,658 | — | — | 91,735 | |||||||||||||||
Total deferred credits and other liabilities | 906,108 | 213,797 | 162,075 | — | — | 1,281,980 | |||||||||||||||
Contributions in aid of construction | 258,084 | 89,763 | 85,047 | — | — | 432,894 | |||||||||||||||
Total capitalization and liabilities | $ | 3,997,786 | 861,960 | 769,237 | 101 | (541,955 | ) | $ | 5,087,129 | ||||||||||||
Consolidating Balance Sheet (unaudited) | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consoli- | Hawaiian Electric | |||||||||||||||
subsidiaries | dating | Consolidated | |||||||||||||||||||
adjustments | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||
Utility property, plant and equipment | |||||||||||||||||||||
Land | $ | 43,816 | 5,464 | 3,064 | — | — | $ | 52,344 | |||||||||||||
Plant and equipment | 3,700,063 | 1,165,542 | 1,036,792 | — | — | 5,902,397 | |||||||||||||||
Less accumulated depreciation | (1,245,695 | ) | (472,044 | ) | (449,806 | ) | — | — | (2,167,545 | ) | |||||||||||
Construction in progress | 149,115 | 13,267 | 16,808 | — | — | 179,190 | |||||||||||||||
Utility property, plant and equipment, net | 2,647,299 | 712,229 | 606,858 | — | — | 3,966,386 | |||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation | 4,948 | 82 | 1,531 | — | — | 6,561 | |||||||||||||||
Total property, plant and equipment, net | 2,652,247 | 712,311 | 608,389 | — | — | 3,972,947 | |||||||||||||||
Investment in wholly owned subsidiaries, at equity | 532,766 | — | — | — | (532,766 | ) | — | ||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 14,856 | 809 | 2,621 | 101 | — | 18,387 | |||||||||||||||
Advances to affiliates | 11,800 | — | — | — | (11,800 | ) | — | ||||||||||||||
Customer accounts receivable, net | 132,809 | 31,023 | 25,901 | — | — | 189,733 | |||||||||||||||
Accrued unbilled revenues, net | 108,306 | 16,474 | 18,373 | — | — | 143,153 | |||||||||||||||
Other accounts receivable, net | 22,386 | 6,044 | 3,070 | — | (11,992 | ) | 19,508 | ||||||||||||||
Fuel oil stock, at average cost | 88,285 | 13,959 | 16,059 | — | — | 118,303 | |||||||||||||||
Materials and supplies, at average cost | 36,502 | 7,870 | 16,267 | — | — | 60,639 | |||||||||||||||
Prepayments and other | 32,033 | 6,112 | 12,358 | — | (233 | ) | 50,270 | ||||||||||||||
Regulatory assets | 44,736 | 4,855 | 5,109 | — | — | 54,700 | |||||||||||||||
Total current assets | 491,713 | 87,146 | 99,758 | 101 | (24,025 | ) | 654,693 | ||||||||||||||
Other long-term assets | |||||||||||||||||||||
Regulatory assets | 395,343 | 66,004 | 59,665 | — | — | 521,012 | |||||||||||||||
Unamortized debt expense | 5,830 | 1,485 | 1,304 | — | — | 8,619 | |||||||||||||||
Other | 42,203 | 11,889 | 13,799 | — | — | 67,891 | |||||||||||||||
Total other long-term assets | 443,376 | 79,378 | 74,768 | — | — | 597,522 | |||||||||||||||
Total assets | $ | 4,120,102 | 878,835 | 782,915 | 101 | (556,791 | ) | $ | 5,225,162 | ||||||||||||
Capitalization and liabilities | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||
Common stock equity | $ | 1,635,751 | 279,388 | 253,277 | 101 | (532,766 | ) | $ | 1,635,751 | ||||||||||||
Cumulative preferred stock—not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | |||||||||||||||
Long-term debt, net | 830,546 | 190,000 | 186,000 | — | — | 1,206,546 | |||||||||||||||
Total capitalization | 2,488,590 | 476,388 | 444,277 | 101 | (532,766 | ) | 2,876,590 | ||||||||||||||
Current liabilities | |||||||||||||||||||||
Current portion of long-term debt | — | 11,400 | — | — | — | 11,400 | |||||||||||||||
Short-term borrowings from non-affiliates | 84,987 | — | — | — | — | 84,987 | |||||||||||||||
Short-term borrowings from affiliate | — | 1,000 | 10,800 | — | (11,800 | ) | — | ||||||||||||||
Accounts payable | 107,108 | 27,077 | 17,793 | — | — | 151,978 | |||||||||||||||
Interest and preferred dividends payable | 16,700 | 3,772 | 3,936 | — | (7 | ) | 24,401 | ||||||||||||||
Taxes accrued | 165,787 | 35,837 | 35,090 | — | (233 | ) | 236,481 | ||||||||||||||
Regulatory liabilities | 289 | — | 239 | — | — | 528 | |||||||||||||||
Other | 46,727 | 10,596 | 17,062 | — | (11,985 | ) | 62,400 | ||||||||||||||
Total current liabilities | 421,598 | 89,682 | 84,920 | — | (24,025 | ) | 572,175 | ||||||||||||||
Deferred credits and other liabilities | |||||||||||||||||||||
Deferred income taxes | 404,144 | 84,905 | 76,450 | — | — | 565,499 | |||||||||||||||
Regulatory liabilities | 244,830 | 79,389 | 32,343 | — | — | 356,562 | |||||||||||||||
Unamortized tax credits | 49,609 | 14,914 | 14,745 | — | — | 79,268 | |||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 192,246 | 26,435 | 29,657 | — | 248,338 | ||||||||||||||||
Other | 51,790 | 13,347 | 12,782 | — | — | 77,919 | |||||||||||||||
Total deferred credits and other liabilities | 942,619 | 218,990 | 165,977 | — | — | 1,327,586 | |||||||||||||||
Contributions in aid of construction | 267,295 | 93,775 | 87,741 | — | — | 448,811 | |||||||||||||||
Total capitalization and liabilities | $ | 4,120,102 | 878,835 | 782,915 | 101 | (556,791 | ) | $ | 5,225,162 | ||||||||||||
Schedule of consolidating statement of changes in common stock equity | ' | ||||||||||||||||||||
Consolidating Statement of Changes in Common Stock Equity (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Balance, December 31, 2013 | $ | 1,593,564 | 274,802 | 248,771 | 101 | (523,674 | ) | $ | 1,593,564 | ||||||||||||
Net income for common stock | 108,529 | 13,308 | 15,268 | — | (28,576 | ) | 108,529 | ||||||||||||||
Other comprehensive income (loss), net of taxes | 32 | (2 | ) | — | — | 2 | 32 | ||||||||||||||
Common stock dividends | (66,369 | ) | (8,720 | ) | (10,762 | ) | — | 19,482 | (66,369 | ) | |||||||||||
Common stock issuance expenses | (5 | ) | — | — | — | — | (5 | ) | |||||||||||||
Balance, September 30, 2014 | $ | 1,635,751 | 279,388 | 253,277 | 101 | (532,766 | ) | $ | 1,635,751 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Changes in Common Stock Equity (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Balance, December 31, 2012 | $ | 1,472,136 | 268,908 | 228,927 | 104 | (497,939 | ) | $ | 1,472,136 | ||||||||||||
Net income (loss) for common stock | 90,939 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | 90,939 | |||||||||||||
Other comprehensive income (loss), net of taxes | 52 | (2 | ) | — | — | 2 | 52 | ||||||||||||||
Common stock dividends | (61,183 | ) | (10,790 | ) | (10,513 | ) | — | 21,303 | (61,183 | ) | |||||||||||
Balance, September 30, 2013 | $ | 1,501,944 | 272,860 | 234,118 | 102 | (507,080 | ) | $ | 1,501,944 | ||||||||||||
Schedule of condensed consolidating statement of cash flows | ' | ||||||||||||||||||||
Consolidating Statement of Cash Flows (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income | $ | 109,339 | 13,708 | 15,554 | — | (28,576 | ) | $ | 110,025 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||
Equity in earnings of subsidiaries | (28,651 | ) | — | — | — | 28,576 | (75 | ) | |||||||||||||
Common stock dividends received from subsidiaries | 19,557 | — | — | — | (19,482 | ) | 75 | ||||||||||||||
Depreciation of property, plant and equipment | 81,903 | 26,926 | 15,961 | — | — | 124,790 | |||||||||||||||
Other amortization | 765 | 1,950 | 1,947 | — | — | 4,662 | |||||||||||||||
Increase in deferred income taxes | 52,274 | 5,146 | 9,972 | — | — | 67,392 | |||||||||||||||
Change in tax credits, net | 4,725 | 687 | 404 | — | — | 5,816 | |||||||||||||||
Allowance for equity funds used during construction | (4,557 | ) | (328 | ) | (48 | ) | — | — | (4,933 | ) | |||||||||||
Change in cash overdraft | — | — | (1,038 | ) | — | — | (1,038 | ) | |||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Increase in accounts receivable | (17,540 | ) | (4,714 | ) | (442 | ) | — | 2,965 | (19,731 | ) | |||||||||||
Decrease (increase) in accrued unbilled revenues | (554 | ) | 626 | 899 | — | — | 971 | ||||||||||||||
Decrease in fuel oil stock | 11,328 | 219 | 4,237 | — | — | 15,784 | |||||||||||||||
Decrease (increase) in materials and supplies | 875 | (987 | ) | (1,483 | ) | — | — | (1,595 | ) | ||||||||||||
Decrease (increase) in regulatory assets | (15,159 | ) | (2,594 | ) | 222 | — | — | (17,531 | ) | ||||||||||||
Decrease in accounts payable | (70,916 | ) | (1,807 | ) | (5,170 | ) | — | — | (77,893 | ) | |||||||||||
Change in prepaid and accrued income and utility revenue taxes | (18,131 | ) | (1,310 | ) | 1,366 | — | — | (18,075 | ) | ||||||||||||
Decrease in defined benefit pension and other postretirement benefit plans liability | (422 | ) | — | (326 | ) | — | — | (748 | ) | ||||||||||||
Change in other assets and liabilities | (31,754 | ) | (3,886 | ) | (3,024 | ) | — | (2,965 | ) | (41,629 | ) | ||||||||||
Net cash provided by operating activities | 93,082 | 33,636 | 39,031 | — | (19,482 | ) | 146,267 | ||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Capital expenditures | (163,333 | ) | (33,212 | ) | (32,560 | ) | — | — | (229,105 | ) | |||||||||||
Contributions in aid of construction | 12,352 | 6,229 | 3,159 | — | — | 21,740 | |||||||||||||||
Advances from (to) affiliates | (4,961 | ) | 1,000 | — | — | 3,961 | — | ||||||||||||||
Net cash used in investing activities | (155,942 | ) | (25,983 | ) | (29,401 | ) | — | 3,961 | (207,365 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Common stock dividends | (66,369 | ) | (8,720 | ) | (10,762 | ) | — | 19,482 | (66,369 | ) | |||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (810 | ) | (400 | ) | (286 | ) | — | — | (1,496 | ) | |||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 83,987 | 1,000 | 3,961 | — | (3,961 | ) | 84,987 | ||||||||||||||
Other | (337 | ) | (50 | ) | (75 | ) | — | — | (462 | ) | |||||||||||
Net cash provided by (used in) financing activities | 16,471 | (8,170 | ) | (7,162 | ) | — | 15,521 | 16,660 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (46,389 | ) | (517 | ) | 2,468 | — | — | (44,438 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 61,245 | 1,326 | 153 | 101 | — | 62,825 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 14,856 | 809 | 2,621 | 101 | — | $ | 18,387 | |||||||||||||
Consolidating Statement of Cash Flows (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income (loss) | $ | 91,749 | 15,144 | 15,990 | (2 | ) | (30,446 | ) | $ | 92,435 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||||||
Equity in earnings of subsidiaries | (30,522 | ) | — | — | — | 30,446 | (76 | ) | |||||||||||||
Common stock dividends received from subsidiaries | 21,379 | — | — | — | (21,303 | ) | 76 | ||||||||||||||
Depreciation of property, plant and equipment | 75,150 | 25,641 | 15,074 | — | — | 115,865 | |||||||||||||||
Other amortization | (228 | ) | 1,075 | 1,623 | — | — | 2,470 | ||||||||||||||
Increase in deferred income taxes | 31,361 | 7,165 | 9,488 | — | — | 48,014 | |||||||||||||||
Change in tax credits, net | 3,773 | 119 | 618 | — | — | 4,510 | |||||||||||||||
Allowance for equity funds used during construction | (3,144 | ) | (552 | ) | (334 | ) | — | — | (4,030 | ) | |||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Decrease (increase) in accounts receivable | 37,894 | (2,552 | ) | 3,999 | — | 2,736 | 42,077 | ||||||||||||||
Decrease (increase) in accrued unbilled revenues | (4,381 | ) | (1,727 | ) | 505 | — | — | (5,603 | ) | ||||||||||||
Decrease in fuel oil stock | 17,945 | 870 | 5,517 | — | — | 24,332 | |||||||||||||||
Increase in materials and supplies | (5,392 | ) | (1,706 | ) | (1,251 | ) | — | — | (8,349 | ) | |||||||||||
Increase in regulatory assets | (37,032 | ) | (7,165 | ) | (9,117 | ) | — | — | (53,314 | ) | |||||||||||
Decrease in accounts payable | (10,435 | ) | (3,343 | ) | (9,196 | ) | — | — | (22,974 | ) | |||||||||||
Change in prepaid and accrued income and utility revenue taxes | (7,122 | ) | (3,566 | ) | (4,728 | ) | — | — | (15,416 | ) | |||||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 1,744 | (191 | ) | (65 | ) | — | — | 1,488 | |||||||||||||
Change in other assets and liabilities | (10,562 | ) | (1,821 | ) | 4,924 | — | (2,736 | ) | (10,195 | ) | |||||||||||
Net cash provided by (used in) operating activities | 172,177 | 27,391 | 33,047 | (2 | ) | (21,303 | ) | 211,310 | |||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Capital expenditures | (164,423 | ) | (35,900 | ) | (37,546 | ) | — | — | (237,869 | ) | |||||||||||
Contributions in aid of construction | 15,699 | 6,160 | 1,774 | — | — | 23,633 | |||||||||||||||
Other | 623 | (196 | ) | — | — | 427 | |||||||||||||||
Advances from (to) affiliates | (13,600 | ) | 11,050 | — | — | 2,550 | — | ||||||||||||||
Net cash used in investing activities | (161,701 | ) | (18,886 | ) | (35,772 | ) | — | 2,550 | (213,809 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Common stock dividends | (61,183 | ) | (10,790 | ) | (10,513 | ) | — | 21,303 | (61,183 | ) | |||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (810 | ) | (400 | ) | (286 | ) | — | — | (1,496 | ) | |||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 62,196 | — | 13,600 | — | (2,550 | ) | 73,246 | ||||||||||||||
Other | (38 | ) | (2 | ) | (2 | ) | — | — | (42 | ) | |||||||||||
Net cash provided by (used in) financing activities | 165 | (11,192 | ) | 2,799 | — | 18,753 | 10,525 | ||||||||||||||
Net decrease in cash and cash equivalents | 10,641 | (2,687 | ) | 74 | (2 | ) | — | 8,026 | |||||||||||||
Cash and cash equivalents, beginning of period | 8,265 | 5,441 | 3,349 | 104 | — | 17,159 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 18,906 | 2,754 | 3,423 | 102 | — | $ | 25,185 | |||||||||||||
Bank_segment_Tables
Bank segment (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Bank subsidiary | ' | ||||||||||||||||||||||||||||||||||||||||
Schedule of statements of income data | ' | ||||||||||||||||||||||||||||||||||||||||
Selected financial information | |||||||||||||||||||||||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||||||||||||||||||||||
Statements of Income Data | |||||||||||||||||||||||||||||||||||||||||
Three months | Nine months | ||||||||||||||||||||||||||||||||||||||||
ended September 30 | ended September 30 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Interest and dividend income | |||||||||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 45,532 | $ | 43,337 | $ | 133,065 | $ | 129,564 | |||||||||||||||||||||||||||||||||
Interest and dividends on investment and mortgage-related securities | 2,773 | 3,025 | 8,758 | 9,723 | |||||||||||||||||||||||||||||||||||||
Total interest and dividend income | 48,305 | 46,362 | 141,823 | 139,287 | |||||||||||||||||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||||||||||||||
Interest on deposit liabilities | 1,312 | 1,262 | 3,774 | 3,870 | |||||||||||||||||||||||||||||||||||||
Interest on other borrowings | 1,438 | 1,206 | 4,263 | 3,548 | |||||||||||||||||||||||||||||||||||||
Total interest expense | 2,750 | 2,468 | 8,037 | 7,418 | |||||||||||||||||||||||||||||||||||||
Net interest income | 45,555 | 43,894 | 133,786 | 131,869 | |||||||||||||||||||||||||||||||||||||
Provision for loan losses | 1,550 | 54 | 3,566 | 953 | |||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 44,005 | 43,840 | 130,220 | 130,916 | |||||||||||||||||||||||||||||||||||||
Noninterest income | |||||||||||||||||||||||||||||||||||||||||
Fees from other financial services | 5,642 | 5,728 | 15,987 | 21,367 | |||||||||||||||||||||||||||||||||||||
Fee income on deposit liabilities | 5,109 | 4,819 | 14,175 | 13,566 | |||||||||||||||||||||||||||||||||||||
Fee income on other financial products | 1,971 | 2,714 | 6,325 | 6,288 | |||||||||||||||||||||||||||||||||||||
Mortgage banking income | 875 | 1,547 | 1,749 | 6,896 | |||||||||||||||||||||||||||||||||||||
Gain on sale of securities | — | — | 2,847 | 1,226 | |||||||||||||||||||||||||||||||||||||
Other income, net | 1,634 | 3,888 | 4,865 | 7,211 | |||||||||||||||||||||||||||||||||||||
Total noninterest income | 15,231 | 18,696 | 45,948 | 56,554 | |||||||||||||||||||||||||||||||||||||
Noninterest expense | |||||||||||||||||||||||||||||||||||||||||
Compensation and employee benefits | 19,892 | 20,564 | 60,050 | 60,715 | |||||||||||||||||||||||||||||||||||||
Occupancy | 4,517 | 4,208 | 12,959 | 12,550 | |||||||||||||||||||||||||||||||||||||
Data processing | 2,684 | 2,168 | 8,715 | 7,982 | |||||||||||||||||||||||||||||||||||||
Services | 2,580 | 2,424 | 7,708 | 6,855 | |||||||||||||||||||||||||||||||||||||
Equipment | 1,672 | 1,825 | 4,926 | 5,469 | |||||||||||||||||||||||||||||||||||||
Office supplies, printing and postage | 1,415 | 907 | 4,487 | 2,806 | |||||||||||||||||||||||||||||||||||||
Marketing | 948 | 692 | 2,690 | 2,054 | |||||||||||||||||||||||||||||||||||||
Communication | 412 | 479 | 1,363 | 1,374 | |||||||||||||||||||||||||||||||||||||
Other expense | 5,544 | 6,461 | 15,026 | 18,400 | |||||||||||||||||||||||||||||||||||||
Total noninterest expense | 39,664 | 39,728 | 117,924 | 118,205 | |||||||||||||||||||||||||||||||||||||
Income before income taxes | 19,572 | 22,808 | 58,244 | 69,265 | |||||||||||||||||||||||||||||||||||||
Income taxes | 6,312 | 7,532 | 18,769 | 23,915 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 13,260 | $ | 15,276 | $ | 39,475 | $ | 45,350 | |||||||||||||||||||||||||||||||||
Schedule of statements of comprehensive income data | ' | ||||||||||||||||||||||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||||||||||||||||||||||
Statements of Comprehensive Income Data | |||||||||||||||||||||||||||||||||||||||||
Three months | Nine months | ||||||||||||||||||||||||||||||||||||||||
ended September 30 | ended September 30 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 13,260 | $ | 15,276 | $ | 39,475 | $ | 45,350 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities: | |||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities arising during the period, net of (taxes) tax benefits of $1,094, $1,049, ($2,249) and $7,081 for the respective periods | (1,657 | ) | (1,589 | ) | 3,406 | (10,724 | ) | ||||||||||||||||||||||||||||||||||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of nil, nil, $1,132 and $488 for the respective periods | — | — | (1,715 | ) | (738 | ) | |||||||||||||||||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||||||||||||||||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $138, $278, $424 and $2,010 for the respective periods | 208 | 420 | 642 | 3,043 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | (1,449 | ) | (1,169 | ) | 2,333 | (8,419 | ) | ||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 11,811 | $ | 14,107 | $ | 41,808 | $ | 36,931 | |||||||||||||||||||||||||||||||||
Schedule of balance sheets data | ' | ||||||||||||||||||||||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||||||||||||||||||||||
Balance Sheets Data | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | 30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 98,879 | $ | 108,998 | |||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 74,654 | 47,605 | |||||||||||||||||||||||||||||||||||||||
Available-for-sale investment and mortgage-related securities | 531,603 | 529,007 | |||||||||||||||||||||||||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 75,063 | 92,546 | |||||||||||||||||||||||||||||||||||||||
Loans receivable held for investment | 4,335,421 | 4,150,229 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (43,461 | ) | (40,116 | ) | |||||||||||||||||||||||||||||||||||||
Loans receivable held for investment, net | 4,291,960 | 4,110,113 | |||||||||||||||||||||||||||||||||||||||
Loans held for sale, at lower of cost or fair value | 2,328 | 5,302 | |||||||||||||||||||||||||||||||||||||||
Other | 285,659 | 268,063 | |||||||||||||||||||||||||||||||||||||||
Goodwill | 82,190 | 82,190 | |||||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,442,336 | $ | 5,243,824 | |||||||||||||||||||||||||||||||||||||
Liabilities and shareholder’s equity | |||||||||||||||||||||||||||||||||||||||||
Deposit liabilities—noninterest-bearing | $ | 1,298,726 | $ | 1,214,418 | |||||||||||||||||||||||||||||||||||||
Deposit liabilities—interest-bearing | 3,235,071 | 3,158,059 | |||||||||||||||||||||||||||||||||||||||
Other borrowings | 263,204 | 244,514 | |||||||||||||||||||||||||||||||||||||||
Other | 107,814 | 105,679 | |||||||||||||||||||||||||||||||||||||||
Total liabilities | 4,904,815 | 4,722,670 | |||||||||||||||||||||||||||||||||||||||
Commitments and contingencies (see “Litigation” section) | |||||||||||||||||||||||||||||||||||||||||
Common stock | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Additional paid in capital | 337,862 | 336,053 | |||||||||||||||||||||||||||||||||||||||
Retained earnings | 209,522 | 197,297 | |||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax benefits | |||||||||||||||||||||||||||||||||||||||||
Net unrealized losses on securities | $ | (1,972 | ) | $ | (3,663 | ) | |||||||||||||||||||||||||||||||||||
Retirement benefit plans | (7,892 | ) | (9,864 | ) | (8,534 | ) | (12,197 | ) | |||||||||||||||||||||||||||||||||
Total shareholder’s equity | 537,521 | 521,154 | |||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholder’s equity | $ | 5,442,336 | $ | 5,243,824 | |||||||||||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||||||||||||||
Bank-owned life insurance | $ | 133,066 | $ | 129,963 | |||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 70,105 | 67,766 | |||||||||||||||||||||||||||||||||||||||
Prepaid expenses | 3,941 | 3,616 | |||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 13,436 | 13,133 | |||||||||||||||||||||||||||||||||||||||
Mortgage-servicing rights | 11,524 | 11,687 | |||||||||||||||||||||||||||||||||||||||
Low-income housing equity investments | 22,825 | 14,543 | |||||||||||||||||||||||||||||||||||||||
Real estate acquired in settlement of loans, net | 580 | 1,205 | |||||||||||||||||||||||||||||||||||||||
Other | 30,182 | 26,150 | |||||||||||||||||||||||||||||||||||||||
$ | 285,659 | $ | 268,063 | ||||||||||||||||||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||||||||||
Accrued expenses | $ | 24,733 | $ | 19,989 | |||||||||||||||||||||||||||||||||||||
Federal and state income taxes payable | 35,096 | 37,807 | |||||||||||||||||||||||||||||||||||||||
Cashier’s checks | 23,754 | 21,110 | |||||||||||||||||||||||||||||||||||||||
Advance payments by borrowers | 5,013 | 9,647 | |||||||||||||||||||||||||||||||||||||||
Other | 19,218 | 17,126 | |||||||||||||||||||||||||||||||||||||||
$ | 107,814 | $ | 105,679 | ||||||||||||||||||||||||||||||||||||||
Schedule of the book value and aggregate fair value by major security type | ' | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities. The book value (amortized cost), gross unrealized gains and losses, estimated fair value and gross unrealized losses (fair value and amount by duration of time in which positions have been held in a continuous loss position) for securities held in ASB’s “available-for-sale” portfolio by major security type were as follows: | |||||||||||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair | Gross unrealized losses | |||||||||||||||||||||||||||||||||||||
value | Less than 12 months | 12 months or longer | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Fair value | Amount | Fair value | Amount | |||||||||||||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency obligations | $ | 107,072 | $ | 631 | $ | (1,407 | ) | $ | 106,296 | $ | 29,628 | $ | (137 | ) | $ | 29,168 | $ | (1,270 | ) | ||||||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA | 427,804 | 5,327 | (7,824 | ) | 425,307 | 89,402 | (910 | ) | 148,544 | (6,914 | ) | ||||||||||||||||||||||||||||||
Municipal bonds | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
$ | 534,876 | $ | 5,958 | $ | (9,231 | ) | $ | 531,603 | $ | 119,030 | $ | (1,047 | ) | $ | 177,712 | $ | (8,184 | ) | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Federal agency obligations | $ | 83,193 | $ | 174 | $ | (2,394 | ) | $ | 80,973 | $ | 70,799 | $ | (2,394 | ) | $ | — | $ | — | |||||||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA | 374,993 | 4,911 | (10,460 | ) | 369,444 | 228,543 | (8,819 | ) | 19,655 | (1,641 | ) | ||||||||||||||||||||||||||||||
Municipal bonds | 76,904 | 1,826 | (140 | ) | 78,590 | 14,478 | (140 | ) | — | — | |||||||||||||||||||||||||||||||
$ | 535,090 | $ | 6,911 | $ | (12,994 | ) | $ | 529,007 | $ | 313,820 | $ | (11,353 | ) | $ | 19,655 | $ | (1,641 | ) | |||||||||||||||||||||||
Schedule of contractual maturities of available-for-sale securities | ' | ||||||||||||||||||||||||||||||||||||||||
The following table details the contractual maturities of available-for-sale securities. All positions with variable maturities (e.g. callable debentures and mortgage-related securities) are disclosed based upon the bond’s contractual maturity. Actual maturities will likely differ from these contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. | |||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | Amortized cost | Fair value | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||
Due after one year through five years | 44,498 | 44,419 | |||||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 37,332 | 37,641 | |||||||||||||||||||||||||||||||||||||||
Due after ten years | 25,242 | 24,236 | |||||||||||||||||||||||||||||||||||||||
107,072 | 106,296 | ||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities-FNMA,FHLMC and GNMA | 427,804 | 425,307 | |||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 534,876 | $ | 531,603 | |||||||||||||||||||||||||||||||||||||
Schedule of allowance for loan losses | ' | ||||||||||||||||||||||||||||||||||||||||
The allowance for loan losses (balances and changes) and financing receivables were as follows: | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | Residential | Commercial real | Home | Residential land | Commercial construction | Residential construction | Commercial loans | Consumer loans | Unallocated | Total | |||||||||||||||||||||||||||||||
1-4 family | estate | equity line of credit | |||||||||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,667 | $ | 7,230 | $ | 7,081 | $ | 1,837 | $ | 3,390 | $ | 26 | $ | 15,144 | $ | 1,997 | $ | — | $ | 42,372 | |||||||||||||||||||||
Charge-offs | (632 | ) | — | (46 | ) | (28 | ) | — | — | (886 | ) | (592 | ) | — | (2,184 | ) | |||||||||||||||||||||||||
Recoveries | 160 | — | 299 | 90 | — | — | 952 | 222 | — | 1,723 | |||||||||||||||||||||||||||||||
Provision | 670 | 3 | (119 | ) | (92 | ) | 1,724 | 3 | (1,130 | ) | 491 | — | 1,550 | ||||||||||||||||||||||||||||
Ending balance | $ | 5,865 | $ | 7,233 | $ | 7,215 | $ | 1,807 | $ | 5,114 | $ | 29 | $ | 14,080 | $ | 2,118 | $ | — | $ | 43,461 | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,357 | $ | 4,117 | $ | 5,009 | $ | 2,187 | $ | 2,305 | $ | 14 | $ | 16,307 | $ | 2,399 | $ | 2,309 | $ | 41,004 | |||||||||||||||||||||
Charge-offs | (106 | ) | — | (44 | ) | (3 | ) | — | — | (305 | ) | (407 | ) | — | (865 | ) | |||||||||||||||||||||||||
Recoveries | 157 | — | 78 | 282 | — | — | 166 | 176 | — | 859 | |||||||||||||||||||||||||||||||
Provision | (604 | ) | 204 | 12 | (361 | ) | 44 | 2 | (361 | ) | 42 | 1,076 | 54 | ||||||||||||||||||||||||||||
Ending balance | $ | 5,804 | $ | 4,321 | $ | 5,055 | $ | 2,105 | $ | 2,349 | $ | 16 | $ | 15,807 | $ | 2,210 | $ | 3,385 | $ | 41,052 | |||||||||||||||||||||
Nine months ended | |||||||||||||||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,534 | $ | 5,059 | $ | 5,229 | $ | 1,817 | $ | 2,397 | $ | 19 | $ | 15,803 | $ | 2,367 | $ | 1,891 | $ | 40,116 | |||||||||||||||||||||
Charge-offs | (992 | ) | — | (182 | ) | (81 | ) | — | — | (1,256 | ) | (1,614 | ) | — | (4,125 | ) | |||||||||||||||||||||||||
Recoveries | 1,056 | — | 624 | 253 | — | — | 1,277 | 694 | — | 3,904 | |||||||||||||||||||||||||||||||
Provision | 267 | 2,174 | 1,544 | (182 | ) | 2,717 | 10 | (1,744 | ) | 671 | (1,891 | ) | 3,566 | ||||||||||||||||||||||||||||
Ending balance | $ | 5,865 | $ | 7,233 | $ | 7,215 | $ | 1,807 | $ | 5,114 | $ | 29 | $ | 14,080 | $ | 2,118 | $ | — | $ | 43,461 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 917 | $ | 4 | $ | 8 | $ | 1,171 | $ | — | $ | — | $ | 810 | $ | 5 | $ | — | $ | 2,915 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 4,948 | $ | 7,229 | $ | 7,207 | $ | 636 | $ | 5,114 | $ | 29 | $ | 13,270 | $ | 2,113 | $ | — | $ | 40,546 | |||||||||||||||||||||
Financing Receivables: | |||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,030,337 | $ | 502,356 | $ | 808,991 | $ | 16,935 | $ | 87,461 | $ | 18,699 | $ | 770,079 | $ | 107,531 | $ | — | $ | 4,342,389 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 20,015 | $ | 754 | $ | 392 | $ | 8,872 | $ | — | $ | — | $ | 15,058 | $ | 16 | $ | — | $ | 45,107 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 2,010,322 | $ | 501,602 | $ | 808,599 | $ | 8,063 | $ | 87,461 | $ | 18,699 | $ | 755,021 | $ | 107,515 | $ | — | $ | 4,297,282 | |||||||||||||||||||||
Nine months ended | |||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,068 | $ | 2,965 | $ | 4,493 | $ | 4,275 | $ | 2,023 | $ | 9 | $ | 15,931 | $ | 4,019 | $ | 2,202 | $ | 41,985 | |||||||||||||||||||||
Charge-offs | (1,162 | ) | — | (782 | ) | (238 | ) | — | — | (1,655 | ) | (1,811 | ) | — | (5,648 | ) | |||||||||||||||||||||||||
Recoveries | 1,382 | — | 334 | 782 | — | — | 778 | 486 | — | 3,762 | |||||||||||||||||||||||||||||||
Provision | (484 | ) | 1,356 | 1,010 | (2,714 | ) | 326 | 7 | 753 | (484 | ) | 1,183 | 953 | ||||||||||||||||||||||||||||
Ending balance | $ | 5,804 | $ | 4,321 | $ | 5,055 | $ | 2,105 | $ | 2,349 | $ | 16 | $ | 15,807 | $ | 2,210 | $ | 3,385 | $ | 41,052 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 944 | $ | 888 | $ | — | $ | 1,585 | $ | — | $ | — | $ | 2,679 | $ | — | $ | — | $ | 6,096 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 4,860 | $ | 3,433 | $ | 5,055 | $ | 520 | $ | 2,349 | $ | 16 | $ | 13,128 | $ | 2,210 | $ | 3,385 | $ | 34,956 | |||||||||||||||||||||
Financing Receivables: | 0 | ||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,015,082 | $ | 405,037 | $ | 703,210 | $ | 18,400 | $ | 51,067 | $ | 10,460 | $ | 749,733 | $ | 102,400 | $ | — | $ | 4,055,389 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 22,123 | $ | 4,484 | $ | 960 | $ | 12,747 | $ | — | $ | — | $ | 22,777 | $ | 19 | $ | — | $ | 63,110 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,992,959 | $ | 400,553 | $ | 702,250 | $ | 5,653 | $ | 51,067 | $ | 10,460 | $ | 726,956 | $ | 102,381 | $ | — | $ | 3,992,279 | |||||||||||||||||||||
Schedule of credit risk profile by internally assigned grade for loans | ' | ||||||||||||||||||||||||||||||||||||||||
The credit risk profile by internally assigned grade for loans was as follows: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | |||||||||||||||||||||||||||||||||||
real estate | construction | real estate | construction | ||||||||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | 444,723 | $ | 70,335 | $ | 715,284 | $ | 375,217 | $ | 52,112 | $ | 703,053 | |||||||||||||||||||||||||||||
Special mention | 18,199 | — | 8,500 | 33,436 | — | 17,634 | |||||||||||||||||||||||||||||||||||
Substandard | 39,434 | 17,126 | 45,101 | 28,020 | — | 59,663 | |||||||||||||||||||||||||||||||||||
Doubtful | — | — | 1,194 | 3,770 | — | 3,038 | |||||||||||||||||||||||||||||||||||
Loss | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total | $ | 502,356 | $ | 87,461 | $ | 770,079 | $ | 440,443 | $ | 52,112 | $ | 783,388 | |||||||||||||||||||||||||||||
Schedule of credit risk profile based on payment activity for loans | ' | ||||||||||||||||||||||||||||||||||||||||
The credit risk profile based on payment activity for loans was as follows: | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | 30-59 | 60-89 | Greater | Total | Current | Total | Recorded | ||||||||||||||||||||||||||||||||||
days | days | than | past due | financing | investment> | ||||||||||||||||||||||||||||||||||||
past due | past due | 90 days | receivables | 90 days and | |||||||||||||||||||||||||||||||||||||
accruing | |||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 6,449 | $ | 909 | $ | 14,427 | $ | 21,785 | $ | 2,008,552 | $ | 2,030,337 | $ | — | |||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | 502,356 | 502,356 | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 578 | 166 | 143 | 887 | 808,104 | 808,991 | — | ||||||||||||||||||||||||||||||||||
Residential land | 260 | — | 525 | 785 | 16,150 | 16,935 | 525 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 87,461 | 87,461 | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 18,699 | 18,699 | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 239 | 34 | 954 | 1,227 | 768,852 | 770,079 | — | ||||||||||||||||||||||||||||||||||
Consumer loans | 781 | 377 | 293 | 1,451 | 106,080 | 107,531 | — | ||||||||||||||||||||||||||||||||||
Total loans | $ | 8,307 | $ | 1,486 | $ | 16,342 | $ | 26,135 | $ | 4,316,254 | $ | 4,342,389 | $ | 525 | |||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 2,728 | $ | 622 | $ | 15,411 | $ | 18,761 | $ | 1,987,246 | $ | 2,006,007 | $ | — | |||||||||||||||||||||||||||
Commercial real estate | — | — | 3,770 | 3,770 | 436,673 | 440,443 | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 765 | 312 | 960 | 2,037 | 737,294 | 739,331 | — | ||||||||||||||||||||||||||||||||||
Residential land | 184 | 48 | 2,756 | 2,988 | 13,188 | 16,176 | — | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 52,112 | 52,112 | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 12,774 | 12,774 | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 1,668 | 612 | 3,026 | 5,306 | 778,082 | 783,388 | — | ||||||||||||||||||||||||||||||||||
Consumer loans | 436 | 158 | 304 | 898 | 107,824 | 108,722 | — | ||||||||||||||||||||||||||||||||||
Total loans | $ | 5,781 | $ | 1,752 | $ | 26,227 | $ | 33,760 | $ | 4,125,193 | $ | 4,158,953 | $ | — | |||||||||||||||||||||||||||
Schedule of credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due | ' | ||||||||||||||||||||||||||||||||||||||||
The credit risk profile based on nonaccrual loans and accruing loans 90 days or more past due was as follows: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Nonaccrual | Accruing loans | Nonaccrual | Accruing loans | |||||||||||||||||||||||||||||||||||||
loans | 90 days or | loans | 90 days or | ||||||||||||||||||||||||||||||||||||||
more past due | more past due | ||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 20,499 | $ | — | $ | 19,679 | $ | — | |||||||||||||||||||||||||||||||||
Commercial real estate | 596 | — | 4,439 | — | |||||||||||||||||||||||||||||||||||||
Home equity line of credit | 1,105 | — | 2,060 | — | |||||||||||||||||||||||||||||||||||||
Residential land | 2,798 | 525 | 3,161 | — | |||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Commercial loans | 11,414 | — | 18,781 | — | |||||||||||||||||||||||||||||||||||||
Consumer loans | 502 | — | 401 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 36,914 | $ | 525 | $ | 48,521 | $ | — | |||||||||||||||||||||||||||||||||
Schedule of the carrying amount and the total unpaid principal balance of impaired loans, with and without recorded allowance for loans losses | ' | ||||||||||||||||||||||||||||||||||||||||
The total carrying amount and the total unpaid principal balance of impaired loans, with and without recorded allowance for loan losses and combined, were as follows: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid | Related | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||||
investment | principal | Allowance | recorded | income | recorded | income | |||||||||||||||||||||||||||||||||||
balance | investment | recognized* | investment | recognized* | |||||||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 8,718 | $ | 10,398 | $ | — | $ | 8,519 | $ | 30 | $ | 9,077 | $ | 189 | |||||||||||||||||||||||||||
Commercial real estate | 596 | 642 | — | 199 | — | 66 | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 208 | 332 | — | 274 | — | 450 | 4 | ||||||||||||||||||||||||||||||||||
Residential land | 2,500 | 3,356 | — | 2,610 | 40 | 2,823 | 138 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 8,858 | 14,147 | — | 6,152 | 6 | 4,145 | 22 | ||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | 10 | — | ||||||||||||||||||||||||||||||||||
20,880 | 28,875 | — | 17,754 | 76 | 16,571 | 353 | |||||||||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 11,297 | 11,338 | 917 | 10,232 | 112 | 8,019 | 303 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 158 | 158 | 4 | 3,045 | 455 | 4,049 | 458 | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 184 | 212 | 8 | 198 | 1 | 89 | 2 | ||||||||||||||||||||||||||||||||||
Residential land | 6,372 | 6,450 | 1,171 | 6,379 | 81 | 6,685 | 301 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 6,200 | 6,637 | 810 | 10,549 | 207 | 14,249 | 301 | ||||||||||||||||||||||||||||||||||
Consumer loans | 16 | 16 | 5 | 17 | — | 8 | — | ||||||||||||||||||||||||||||||||||
24,227 | 24,811 | 2,915 | 30,420 | 856 | 33,099 | 1,365 | |||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 20,015 | 21,736 | 917 | 18,751 | 142 | 17,096 | 492 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 754 | 800 | 4 | 3,244 | 455 | 4,115 | 458 | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 392 | 544 | 8 | 472 | 1 | 539 | 6 | ||||||||||||||||||||||||||||||||||
Residential land | 8,872 | 9,806 | 1,171 | 8,989 | 121 | 9,508 | 439 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 15,058 | 20,784 | 810 | 16,701 | 213 | 18,394 | 323 | ||||||||||||||||||||||||||||||||||
Consumer loans | 16 | 16 | 5 | 17 | — | 18 | — | ||||||||||||||||||||||||||||||||||
$ | 45,107 | $ | 53,686 | $ | 2,915 | $ | 48,174 | $ | 932 | $ | 49,670 | $ | 1,718 | ||||||||||||||||||||||||||||
31-Dec-13 | Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||||||||||
investment | principal | allowance | recorded | income | |||||||||||||||||||||||||||||||||||||
balance | investment | recognized* | |||||||||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 9,708 | $ | 12,144 | $ | — | $ | 11,674 | $ | 386 | |||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | 802 | — | ||||||||||||||||||||||||||||||||||||
Home equity line of credit | 672 | 1,227 | — | 623 | 2 | ||||||||||||||||||||||||||||||||||||
Residential land | 2,622 | 3,612 | — | 6,675 | 482 | ||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial loans | 3,466 | 4,715 | — | 4,837 | 12 | ||||||||||||||||||||||||||||||||||||
Consumer loans | 19 | 19 | — | 20 | — | ||||||||||||||||||||||||||||||||||||
16,487 | 21,717 | — | 24,631 | 882 | |||||||||||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 6,216 | 6,236 | 642 | 6,455 | 372 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 4,604 | 4,686 | 1,118 | 5,745 | 152 | ||||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential land | 7,452 | 7,623 | 1,332 | 6,844 | 409 | ||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial loans | 17,759 | 20,640 | 2,246 | 15,635 | 139 | ||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
36,031 | 39,185 | 5,338 | 34,679 | 1,072 | |||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 15,924 | 18,380 | 642 | 18,129 | 758 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 4,604 | 4,686 | 1,118 | 6,547 | 152 | ||||||||||||||||||||||||||||||||||||
Home equity line of credit | 672 | 1,227 | — | 623 | 2 | ||||||||||||||||||||||||||||||||||||
Residential land | 10,074 | 11,235 | 1,332 | 13,519 | 891 | ||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial loans | 21,225 | 25,355 | 2,246 | 20,472 | 151 | ||||||||||||||||||||||||||||||||||||
Consumer loans | 19 | 19 | — | 20 | — | ||||||||||||||||||||||||||||||||||||
$ | 52,518 | $ | 60,902 | $ | 5,338 | $ | 59,310 | $ | 1,954 | ||||||||||||||||||||||||||||||||
* | Since loan was classified as impaired. | ||||||||||||||||||||||||||||||||||||||||
Schedule of loan modifications | ' | ||||||||||||||||||||||||||||||||||||||||
Loan modifications that occurred were as follows for the indicated periods: | |||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2014 | Nine months ended September 30, 2014 | ||||||||||||||||||||||||||||||||||||||||
Number of | Outstanding recorded investment | Number of | Outstanding recorded investment | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | contracts | Pre-modification | Post-modification | contracts | Pre-modification | Post-modification | |||||||||||||||||||||||||||||||||||
Troubled debt restructurings | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 6 | $ | 1,800 | $ | 1,825 | 18 | $ | 4,915 | $ | 4,972 | |||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Home equity line of credit | 1 | 91 | 91 | 1 | 91 | 91 | |||||||||||||||||||||||||||||||||||
Residential land | 2 | 256 | 256 | 18 | 4,304 | 4,304 | |||||||||||||||||||||||||||||||||||
Commercial loans | 2 | 2,600 | 2,600 | 7 | 3,827 | 3,827 | |||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
11 | $ | 4,747 | $ | 4,772 | 44 | $ | 13,137 | $ | 13,194 | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
Number of | Outstanding recorded investment | Number of | Outstanding recorded investment | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | contracts | Pre-modification | Post-modification | contracts | Pre-modification | Post-modification | |||||||||||||||||||||||||||||||||||
Troubled debt restructurings | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 14 | $ | 2,864 | $ | 2,874 | 32 | $ | 8,631 | $ | 8,712 | |||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | 4 | 462 | 215 | |||||||||||||||||||||||||||||||||||
Residential land | 9 | 2,943 | 2,943 | 16 | 4,983 | 4,974 | |||||||||||||||||||||||||||||||||||
Commercial loans | 3 | 2,076 | 2,076 | 6 | 2,790 | 2,790 | |||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
26 | $ | 7,883 | $ | 7,893 | 58 | $ | 16,866 | $ | 16,691 | ||||||||||||||||||||||||||||||||
Loans modified in TDRs that experienced a payment default of 90 days or more for the indicated periods, and for which the payment default occurred within one year of the modification, were as follows: | |||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2014 | Nine months ended September 30, 2014 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Number of contracts | Recorded investment | Number of contracts | Recorded investment | |||||||||||||||||||||||||||||||||||||
Troubled debt restructurings that | |||||||||||||||||||||||||||||||||||||||||
subsequently defaulted | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | — | $ | — | 1 | $ | 390 | |||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Residential land | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Commercial loans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
— | $ | — | 1 | $ | 390 | ||||||||||||||||||||||||||||||||||||
Schedule of information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties: | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Gross amount of | Gross amount offset in | Net amount of liabilities presented | ||||||||||||||||||||||||||||||||||||||
recognized liabilities | the Balance Sheet | in the Balance Sheet | |||||||||||||||||||||||||||||||||||||||
Repurchase agreements | |||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | $153 | $— | $153 | ||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 145 | — | 145 | ||||||||||||||||||||||||||||||||||||||
Gross amount not offset in the Balance Sheet | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Net amount of | Financial | Cash | Net amount | |||||||||||||||||||||||||||||||||||||
liabilities presented | instruments | collateral | |||||||||||||||||||||||||||||||||||||||
in the Balance Sheet | pledged | ||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||||||||||||||
Financial institution | $ | 50 | $ | 50 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Government entities | 15 | 15 | — | — | |||||||||||||||||||||||||||||||||||||
Commercial account holders | 88 | 88 | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 153 | $ | 153 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Financial institution | $ | 51 | $ | 51 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Commercial account holders | 94 | 94 | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 145 | $ | 145 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Schedule of amortized intangible assets | ' | ||||||||||||||||||||||||||||||||||||||||
Amortized intangible assets. The table below presents the gross carrying amount, accumulated amortization, valuation allowance and net carrying amount of ASB’s mortgage servicing assets as of September 30, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||||||
30-Sep | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Gross | Accumulated amortization | Valuation allowance | Net | Gross | Accumulated amortization | Valuation allowance | Net | |||||||||||||||||||||||||||||||||
carrying amount | carrying amount | carrying amount | carrying amount | ||||||||||||||||||||||||||||||||||||||
Mortgage servicing assets | $ | 26,685 | (15,003 | ) | (158 | ) | $ | 11,524 | $ | 25,198 | (13,265 | ) | (127 | ) | $ | 11,806 | |||||||||||||||||||||||||
Changes in the valuation allowance for mortgage servicing assets were as follows: | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Valuation allowance, January 1 | $ | 251 | $ | 498 | |||||||||||||||||||||||||||||||||||||
Provision (recovery) | (36 | ) | (215 | ) | |||||||||||||||||||||||||||||||||||||
Other-than-temporary impairment | (57 | ) | (156 | ) | |||||||||||||||||||||||||||||||||||||
Valuation allowance, September 30 | $ | 158 | $ | 127 | |||||||||||||||||||||||||||||||||||||
Schedule of key assumptions used in estimating fair value | ' | ||||||||||||||||||||||||||||||||||||||||
Key assumptions used in estimating the fair value of the bank’s mortgage servicing rights were as follows: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||||||||||||||
Unpaid principal balance | $ | 1,380,299 | $ | 1,329,815 | |||||||||||||||||||||||||||||||||||||
Weighted average note rate | 4.08 | % | 4.06 | % | |||||||||||||||||||||||||||||||||||||
Weighted average discount rate | 9.6 | % | 10.1 | % | |||||||||||||||||||||||||||||||||||||
Weighted average prepayment speed | 8.1 | % | 6.6 | % | |||||||||||||||||||||||||||||||||||||
For loans and real estate acquired in settlement of loans classified as Level 3 as of September 30, 2014 and December 31, 2013, the significant unobservable inputs used in the fair value measurement were as follows: | |||||||||||||||||||||||||||||||||||||||||
Significant unobservable | |||||||||||||||||||||||||||||||||||||||||
input value 1 | |||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Fair value | Valuation technique | Significant unobservable input | Range | Weighted | ||||||||||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Residential loans | $ | 1,928 | Fair value of property or collateral | Appraised value less 7% selling costs | 44-96% | 83% | |||||||||||||||||||||||||||||||||||
Commercial loans | 216 | Fair value of property or collateral | Fair value of business assets | 19% | |||||||||||||||||||||||||||||||||||||
Total loans | $ | 2,144 | |||||||||||||||||||||||||||||||||||||||
Real estate acquired in settlement of loans | $ | 554 | Fair value of property or collateral | Appraised value less 7% selling costs | 100% | 100% | |||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Residential loans | $ | 2,361 | Fair value of property or collateral | Appraised value less 7% selling costs | 44-96% | 87% | |||||||||||||||||||||||||||||||||||
Home equity lines of credit | 170 | Fair value of property or collateral | Appraised value less 7% selling costs | 45-50% | 50% | ||||||||||||||||||||||||||||||||||||
Commercial loans | 217 | Fair value of property or collateral | Fair value of business assets | 19% | |||||||||||||||||||||||||||||||||||||
Commercial loans | 1,668 | Discounted cash flows | Present value of expected future cash flows | 58% | |||||||||||||||||||||||||||||||||||||
Discount rate | 4.50% | ||||||||||||||||||||||||||||||||||||||||
Total loans | $ | 4,416 | |||||||||||||||||||||||||||||||||||||||
1 Represent percent of outstanding principal balance. | |||||||||||||||||||||||||||||||||||||||||
Schedule of notional and fair value of derivatives | ' | ||||||||||||||||||||||||||||||||||||||||
The notional amount and fair value of ASB’s derivative financial instruments as of September 30, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||||||||||
September 30, 2014 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Notional amount | Fair value | Notional amount | Fair value | |||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | 14,511 | $ | 215 | $ | 25,070 | $ | 464 | |||||||||||||||||||||||||||||||||
Forward commitments | 12,707 | (25 | ) | 26,018 | 139 | ||||||||||||||||||||||||||||||||||||
Schedule of derivative financial instruments | ' | ||||||||||||||||||||||||||||||||||||||||
The following table presents ASB’s derivative financial instruments, their fair values, and balance sheet location as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments Not Designated as Hedging Instruments 1 | September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Derivative asset | Derivative liability | Derivative asset | Derivative liability | |||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | 216 | $ | 1 | $ | 488 | $ | 24 | |||||||||||||||||||||||||||||||||
Forward commitments | 1 | 26 | 141 | 2 | |||||||||||||||||||||||||||||||||||||
$ | 217 | $ | 27 | $ | 629 | $ | 26 | ||||||||||||||||||||||||||||||||||
1 Derivative assets are included in other assets and derivative liabilities are included in other liabilities in the balance sheets. | |||||||||||||||||||||||||||||||||||||||||
Schedule of derivative financial instruments and net gain or loss | ' | ||||||||||||||||||||||||||||||||||||||||
The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in the statements of income for the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments Not Designated as Hedging Instruments | Location of net gains (losses) recognized in the Statement of Income | Three months | Nine months | ||||||||||||||||||||||||||||||||||||||
ended September 30 | ended September 30 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | Mortgage banking income | $ | 215 | $ | 818 | $ | (249 | ) | $ | 556 | |||||||||||||||||||||||||||||||
Forward commitments | Mortgage banking income | (25 | ) | (1,173 | ) | (164 | ) | (273 | ) | ||||||||||||||||||||||||||||||||
$ | 190 | $ | (355 | ) | $ | (413 | ) | $ | 283 | ||||||||||||||||||||||||||||||||
Retirement_benefits_Tables
Retirement benefits (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of components of net periodic benefit cost for consolidated HEI | ' | ||||||||||||||||||||||||||||||||
The components of net periodic benefit cost for HEI consolidated and Hawaiian Electric consolidated were as follows: | |||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
Pension benefits | Other benefits | Pension benefits | Other benefits | ||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
HEI consolidated | |||||||||||||||||||||||||||||||||
Service cost | $ | 12,306 | $ | 14,097 | $ | 870 | $ | 1,077 | $ | 36,958 | $ | 42,307 | $ | 2,619 | $ | 3,229 | |||||||||||||||||
Interest cost | 18,044 | 16,187 | 2,137 | 1,891 | 54,158 | 48,600 | 6,414 | 5,677 | |||||||||||||||||||||||||
Expected return on plan assets | (20,337 | ) | (18,134 | ) | (2,724 | ) | (2,531 | ) | (61,018 | ) | (54,401 | ) | (8,180 | ) | (7,614 | ) | |||||||||||||||||
Amortization of net prior service loss (gain) | 22 | (24 | ) | (448 | ) | (448 | ) | 66 | (73 | ) | (1,345 | ) | (1,345 | ) | |||||||||||||||||||
Amortization of net actuarial loss (gain) | 5,064 | 9,560 | (2 | ) | 398 | 15,240 | 28,878 | (8 | ) | 1,203 | |||||||||||||||||||||||
Net periodic benefit cost (credit) | 15,099 | 21,686 | (167 | ) | 387 | 45,404 | 65,311 | (500 | ) | 1,150 | |||||||||||||||||||||||
Impact of PUC D&Os | (3,331 | ) | (9,257 | ) | 494 | (332 | ) | (9,993 | ) | (28,847 | ) | 1,482 | (1,018 | ) | |||||||||||||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os) | $ | 11,768 | $ | 12,429 | $ | 327 | $ | 55 | $ | 35,411 | $ | 36,464 | $ | 982 | $ | 132 | |||||||||||||||||
Hawaiian Electric consolidated | |||||||||||||||||||||||||||||||||
Service cost | $ | 11,900 | $ | 13,620 | $ | 848 | $ | 1,041 | $ | 35,698 | $ | 40,861 | $ | 2,544 | $ | 3,122 | |||||||||||||||||
Interest cost | 16,495 | 14,780 | 2,058 | 1,822 | 49,484 | 44,339 | 6,175 | 5,466 | |||||||||||||||||||||||||
Expected return on plan assets | (18,167 | ) | (16,138 | ) | (2,684 | ) | (2,502 | ) | (54,496 | ) | (48,413 | ) | (8,054 | ) | (7,502 | ) | |||||||||||||||||
Amortization of net prior service loss (gain) | 15 | (116 | ) | (451 | ) | (451 | ) | 46 | (348 | ) | (1,353 | ) | (1,353 | ) | |||||||||||||||||||
Amortization of net actuarial loss | 4,616 | 8,649 | — | 387 | 13,845 | 25,948 | — | 1,159 | |||||||||||||||||||||||||
Net periodic benefit cost (credit) | 14,859 | 20,795 | (229 | ) | 297 | 44,577 | 62,387 | (688 | ) | 892 | |||||||||||||||||||||||
Impact of PUC D&Os | (3,331 | ) | (9,257 | ) | 494 | (332 | ) | (9,993 | ) | (28,847 | ) | 1,482 | (1,018 | ) | |||||||||||||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os) | $ | 11,528 | $ | 11,538 | $ | 265 | $ | (35 | ) | $ | 34,584 | $ | 33,540 | $ | 794 | $ | (126 | ) | |||||||||||||||
Sharebased_compensation_Tables
Share-based compensation (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of share-based compensation expense and related income tax benefit | ' | |||||||||||||||||||||||||||||||
Share-based compensation expense and the related income tax benefit were as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
HEI consolidated | ||||||||||||||||||||||||||||||||
Share-based compensation expense 1 | $ | 2 | $ | 2.5 | $ | 7.2 | $ | 6 | ||||||||||||||||||||||||
Income tax benefit | 0.7 | 0.9 | 2.6 | 2.2 | ||||||||||||||||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||||||||||||||
Share-based compensation expense 1 | 0.6 | 0.8 | 2.2 | 1.9 | ||||||||||||||||||||||||||||
Income tax benefit | 0.2 | 0.3 | 0.9 | 0.7 | ||||||||||||||||||||||||||||
1 | $0.04 million and $0.03 million of this share-based compensation expense was capitalized in the third quarter of 2014 and 2013, respectively. $0.12 million and $0.09 million of this share-based compensation expense was capitalized in the nine months ended September 30, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||
Schedule of effects of this revision on previous disclosures | ' | |||||||||||||||||||||||||||||||
The table below illustrates the effects of the revisions on the previously filed financial statements: | ||||||||||||||||||||||||||||||||
As previously | As | |||||||||||||||||||||||||||||||
(in thousands) | filed | revised | Difference | |||||||||||||||||||||||||||||
HEI consolidated | ||||||||||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | ||||||||||||||||||||||||||||||||
Revenues | $ | 831,229 | $ | 829,168 | $ | (2,061 | ) | |||||||||||||||||||||||||
Operating income | 90,099 | 88,038 | (2,061 | ) | ||||||||||||||||||||||||||||
Interest expense, net—other than on deposit liabilities and other bank borrowings | (20,304 | ) | (19,043 | ) | 1,261 | |||||||||||||||||||||||||||
Income before income taxes | 71,548 | 70,748 | (800 | ) | ||||||||||||||||||||||||||||
Income taxes | 22,841 | 22,041 | (800 | ) | ||||||||||||||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||||||||||||||
Revenues | 2,412,023 | 2,405,967 | (6,056 | ) | ||||||||||||||||||||||||||||
Operating income | 243,126 | 237,070 | (6,056 | ) | ||||||||||||||||||||||||||||
Interest expense, net—other than on deposit liabilities and other bank borrowings | (59,705 | ) | (56,216 | ) | 3,489 | |||||||||||||||||||||||||||
Income before income taxes | 189,077 | 186,510 | (2,567 | ) | ||||||||||||||||||||||||||||
Income taxes | 65,157 | 62,590 | (2,567 | ) | ||||||||||||||||||||||||||||
Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Property, plant and equipment, net of accumulated depreciation | 3,858,947 | 3,865,514 | 6,567 | |||||||||||||||||||||||||||||
Accumulated depreciation | (2,191,199 | ) | (2,192,422 | ) | (1,223 | ) | ||||||||||||||||||||||||||
Other assets | 519,194 | 512,627 | (6,567 | ) | ||||||||||||||||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||||||||||||||
Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Other assets | 73,993 | 67,426 | (6,567 | ) | ||||||||||||||||||||||||||||
Schedule of nonemployee director stock award plan activity | ' | |||||||||||||||||||||||||||||||
Stock awards. HEI granted HEI common stock to nonemployee directors of HEI, Hawaiian Electric and ASB under the 2011 Director Plan as follows: | ||||||||||||||||||||||||||||||||
Nine months ended September 30 | ||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Shares granted | 33,170 | 33,184 | ||||||||||||||||||||||||||||||
Fair value | $ | 0.8 | $ | 0.8 | ||||||||||||||||||||||||||||
Income tax benefit | 0.3 | 0.3 | ||||||||||||||||||||||||||||||
Schedule of nonqualified stock options activity and statistics | ' | |||||||||||||||||||||||||||||||
NQSO activity and statistics were as follows: | ||||||||||||||||||||||||||||||||
(dollars in thousands, except prices) | Three months ended September 30, 2013 | Nine months ended | ||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Shares exercised | — | 14,000 | ||||||||||||||||||||||||||||||
Weighted-average exercise price | $ | — | $ | 20.49 | ||||||||||||||||||||||||||||
Cash received from exercise | $ | — | $ | 287 | ||||||||||||||||||||||||||||
Intrinsic value of shares exercised 1 | $ | — | $ | 128 | ||||||||||||||||||||||||||||
Tax benefit realized for the deduction of exercises | $ | — | $ | 50 | ||||||||||||||||||||||||||||
1 Intrinsic value is the amount by which the fair market value of the underlying stock and the related dividend equivalents exceeds the exercise price of the option. | ||||||||||||||||||||||||||||||||
Schedule of stock appreciation rights by grant year | ' | |||||||||||||||||||||||||||||||
Stock appreciation rights. Information about HEI’s SARs was as follows: | ||||||||||||||||||||||||||||||||
30-Sep-14 | Outstanding & Exercisable (Vested) | |||||||||||||||||||||||||||||||
Year of | Number of shares | Weighted-average | Weighted-average | |||||||||||||||||||||||||||||
grant | underlying SARs | remaining | exercise price | |||||||||||||||||||||||||||||
contractual life | ||||||||||||||||||||||||||||||||
2005 | 102,000 | 0.5 | $ | 26.18 | ||||||||||||||||||||||||||||
Schedule of restricted stock units | ' | |||||||||||||||||||||||||||||||
Restricted stock units. Information about HEI’s grants of restricted stock units was as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||||||||
Outstanding, beginning of period | 264,326 | $ | 25.74 | 300,313 | $ | 25.15 | 288,151 | $ | 25.17 | 315,094 | $ | 22.82 | ||||||||||||||||||||
Granted | 2,750 | 24.48 | 4,000 | 26.48 | 117,786 | 25.17 | 111,231 | 26.88 | ||||||||||||||||||||||||
Vested | (3,500 | ) | 23.5 | (2,500 | ) | 22.31 | (142,361 | ) | 24.07 | (116,544 | ) | 20.39 | ||||||||||||||||||||
Forfeited | — | — | (11,321 | ) | 25.88 | — | — | (19,289 | ) | 25.62 | ||||||||||||||||||||||
Outstanding, end of period | 263,576 | $ | 25.76 | 290,492 | $ | 25.16 | 263,576 | $ | 25.76 | 290,492 | $ | 25.16 | ||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted ($ millions) | $ | 0.1 | $ | 0.1 | $ | 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. | |||||||||||||||||||||||||||||||
Schedule of Long-Term Incentive Plan (LTIP) linked to total return to shareholders | ' | |||||||||||||||||||||||||||||||
LTIP linked to TRS. Information about HEI’s LTIP grants linked to TRS was as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||||||||
Outstanding, beginning of period | 257,956 | $ | 28.45 | 235,064 | $ | 32.87 | 232,127 | $ | 32.88 | 239,256 | $ | 29.12 | ||||||||||||||||||||
Granted (target level) | — | — | 1,505 | 32.69 | 97,524 | 22.95 | 91,038 | 32.69 | ||||||||||||||||||||||||
Vested (issued or unissued and cancelled) | — | — | — | — | (70,189 | ) | 35.46 | (87,753 | ) | 22.45 | ||||||||||||||||||||||
Forfeited | — | — | (4,442 | ) | 32.4 | (1,506 | ) | 28.32 | (10,414 | ) | 32.72 | |||||||||||||||||||||
Outstanding, end of period | 257,956 | $ | 28.45 | 232,127 | $ | 32.88 | 257,956 | $ | 28.45 | 232,127 | $ | 32.88 | ||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted ($ millions) | $ | — | $ | — | $ | 2.2 | $ | 3 | ||||||||||||||||||||||||
-1 | Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. | |||||||||||||||||||||||||||||||
Schedule of assumptions used to determine the fair value of Long-Term Incentive Plan (LTIP) linked to total return to shareholders (TRS) | ' | |||||||||||||||||||||||||||||||
The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TRS and the resulting fair value of LTIP awards granted: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Risk-free interest rate | 0.66 | % | 0.38 | % | ||||||||||||||||||||||||||||
Expected life in years | 3 | 3 | ||||||||||||||||||||||||||||||
Expected volatility | 17.8 | % | 19.4 | % | ||||||||||||||||||||||||||||
Range of expected volatility for Peer Group | 12.4% to 23.3% | 12.4% to 25.3% | ||||||||||||||||||||||||||||||
Grant date fair value (per share) | $ | 22.95 | $ | 32.69 | ||||||||||||||||||||||||||||
Schedule of Long-Term Incentive Plan (LTIP) linked to other performance conditions | ' | |||||||||||||||||||||||||||||||
LTIP awards linked to other performance conditions. Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||||||||
Outstanding, beginning of period | 359,782 | $ | 26.01 | 304,473 | $ | 26.12 | 296,843 | $ | 26.14 | 247,175 | $ | 25.04 | ||||||||||||||||||||
Granted (target level) | — | — | 1,504 | 27.11 | 129,603 | 25.18 | 120,399 | 26.89 | ||||||||||||||||||||||||
Vested (issued) | — | — | — | — | (65,089 | ) | 24.95 | (18,280 | ) | 18.95 | ||||||||||||||||||||||
Cancelled | — | — | — | — | — | — | (37,346 | ) | 24.96 | |||||||||||||||||||||||
Forfeited | — | — | (4,881 | ) | 26.53 | (1,575 | ) | 26.07 | (10,852 | ) | 26.2 | |||||||||||||||||||||
Outstanding, end of period | 359,782 | $ | 26.01 | 301,096 | $ | 26.12 | 359,782 | $ | 26.01 | 301,096 | $ | 26.12 | ||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions) | $ | — | $ | — | $ | 3.3 | $ | 3.2 | ||||||||||||||||||||||||
-1 | Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Earnings_per_share_and_shareho1
Earnings per share and shareholders' equity (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of earnings per share | ' | |||||||||||||||||||||||||||||||
Earnings per share. Under the two-class method of computing earnings per share (EPS), EPS was comprised as follows for both participating securities and unrestricted common stock: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||||||||||||
Distributed earnings | $ | 0.31 | $ | 0.31 | $ | 0.31 | $ | 0.31 | $ | 0.93 | $ | 0.93 | $ | 0.93 | $ | 0.93 | ||||||||||||||||
Undistributed earnings | 0.16 | 0.15 | 0.18 | 0.17 | 0.4 | 0.39 | 0.31 | 0.3 | ||||||||||||||||||||||||
$ | 0.47 | $ | 0.46 | $ | 0.49 | $ | 0.48 | $ | 1.33 | $ | 1.32 | $ | 1.24 | $ | 1.23 | |||||||||||||||||
Schedule of accumulated other comprehensive income | ' | |||||||||||||||||||||||||||||||
Accumulated other comprehensive income. Changes in the balances of each component of accumulated other comprehensive income/(loss) (AOCI) were as follows: | ||||||||||||||||||||||||||||||||
HEI Consolidated | Hawaiian Electric Consolidated | |||||||||||||||||||||||||||||||
(in thousands) | Net unrealized gains (losses) on securities | Unrealized losses on derivatives | Retirement benefit plans | AOCI | AOCI -retirement benefit plans | |||||||||||||||||||||||||||
Balance, December 31, 2013 | $ | (3,663 | ) | $ | (525 | ) | $ | (12,562 | ) | $ | (16,750 | ) | $ | 608 | ||||||||||||||||||
Current period other comprehensive income | 1,691 | 177 | 888 | 2,756 | 32 | |||||||||||||||||||||||||||
Balance, September 30, 2014 | $ | (1,972 | ) | $ | (348 | ) | $ | (11,674 | ) | $ | (13,994 | ) | $ | 640 | ||||||||||||||||||
Balance, December 31, 2012 | $ | 10,761 | $ | (760 | ) | $ | (36,424 | ) | $ | (26,423 | ) | $ | (970 | ) | ||||||||||||||||||
Current period other comprehensive income (loss) | (11,462 | ) | 177 | 2,022 | (9,263 | ) | 52 | |||||||||||||||||||||||||
Balance, September 30, 2013 | $ | (701 | ) | $ | (583 | ) | $ | (34,402 | ) | $ | (35,686 | ) | $ | (918 | ) | |||||||||||||||||
Schedule of reclassifications out of accumulated other comprehensive income/(loss) | ' | |||||||||||||||||||||||||||||||
Reclassifications out of AOCI were as follows: | ||||||||||||||||||||||||||||||||
Amount reclassified from AOCI | ||||||||||||||||||||||||||||||||
Three months | Nine months | |||||||||||||||||||||||||||||||
ended September 30 | ended September 30 | |||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | Affected line item in the Statement of Income | |||||||||||||||||||||||||||
HEI consolidated | ||||||||||||||||||||||||||||||||
Net realized gains on securities | $ | — | $ | — | $ | (1,715 | ) | $ | (738 | ) | Revenues-bank (net gains on sales of securities) | |||||||||||||||||||||
Derivatives qualified as cash flow hedges | ||||||||||||||||||||||||||||||||
Interest rate contracts (settled in 2011) | 59 | 59 | 177 | 177 | Interest expense | |||||||||||||||||||||||||||
Retirement benefit plan items | ||||||||||||||||||||||||||||||||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | 2,829 | 5,789 | 8,515 | 17,490 | See Note 5 for additional details | |||||||||||||||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | (2,542 | ) | (5,156 | ) | (7,627 | ) | (15,468 | ) | See Note 5 for additional details | |||||||||||||||||||||||
Total reclassifications | $ | 346 | $ | 692 | $ | (650 | ) | $ | 1,461 | |||||||||||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||||||||||||||
Retirement benefit plan items | ||||||||||||||||||||||||||||||||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | $ | 2,552 | $ | 5,173 | $ | 7,659 | $ | 15,520 | See Note 5 for additional details | |||||||||||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | (2,542 | ) | (5,156 | ) | (7,627 | ) | (15,468 | ) | See Note 5 for additional details | |||||||||||||||||||||||
Total reclassifications | $ | 10 | $ | 17 | $ | 32 | $ | 52 | ||||||||||||||||||||||||
Fair_value_measurements_Tables
Fair value measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Schedule of estimated fair values of certain of the Company's financial instruments | ' | ||||||||||||||||||||||||
The estimated fair values of certain of the Company’s and the Utilities' financial instruments were as follows: | |||||||||||||||||||||||||
Estimated fair value | |||||||||||||||||||||||||
Carrying or | Quoted | Significant | Significant | ||||||||||||||||||||||
notional amount | prices in | other observable | unobservable | ||||||||||||||||||||||
active markets | inputs | inputs | |||||||||||||||||||||||
for identical assets | |||||||||||||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | |||||||||||||||
Available-for-sale investment and mortgage-related securities | 531,603 | — | 531,603 | — | 531,603 | ||||||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 75,063 | — | 75,063 | — | 75,063 | ||||||||||||||||||||
Loans receivable, net | 4,294,288 | — | — | 4,444,869 | 4,444,869 | ||||||||||||||||||||
Derivative assets | 17,011 | — | 217 | — | 217 | ||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||
Deposit liabilities | 4,533,797 | — | 4,534,177 | — | 4,534,177 | ||||||||||||||||||||
Short-term borrowings—other than bank | 150,576 | — | 150,576 | — | 150,576 | ||||||||||||||||||||
The Utilities' short-term borrowings (included in amount above) | 84,987 | — | 84,987 | — | 84,987 | ||||||||||||||||||||
Other bank borrowings | 263,204 | — | 271,872 | — | 271,872 | ||||||||||||||||||||
Long-term debt, net—other than bank | 1,517,946 | — | 1,626,159 | — | 1,626,159 | ||||||||||||||||||||
The Utilities' long-term debt, net (included in amount above) | 1,217,946 | — | 1,316,380 | — | 1,316,380 | ||||||||||||||||||||
Derivative liabilities | 10,207 | 23 | 4 | — | 27 | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | |||||||||||||||
Available-for-sale investment and mortgage-related securities | 529,007 | — | 529,007 | — | 529,007 | ||||||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 92,546 | — | 92,546 | — | 92,546 | ||||||||||||||||||||
Loans receivable, net | 4,115,415 | — | — | 4,211,290 | 4,211,290 | ||||||||||||||||||||
Derivative assets | 46,356 | 98 | 531 | — | 629 | ||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||
Deposit liabilities | 4,372,477 | — | 4,374,377 | — | 4,374,377 | ||||||||||||||||||||
Short-term borrowings—other than bank | 105,482 | — | 105,482 | — | 105,482 | ||||||||||||||||||||
Other bank borrowings | 244,514 | — | 256,029 | — | 256,029 | ||||||||||||||||||||
Long-term debt, net—other than bank | 1,492,945 | — | 1,508,425 | — | 1,508,425 | ||||||||||||||||||||
The Utilities' long-term debt, net (included in amount above) | 1,217,945 | — | 1,228,966 | — | 1,228,966 | ||||||||||||||||||||
Derivative liabilities | 4,732 | — | 26 | — | 26 | ||||||||||||||||||||
Schedule of assets measured at fair value on a recurring basis | ' | ||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis were as follows: | |||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
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) | $ | — | $ | 10 | $ | — | $ | — | $ | 10 | $ | — | |||||||||||||
Available-for-sale securities (bank segment) | |||||||||||||||||||||||||
Mortgage-related securities-FNMA, FHLMC and GNMA | $ | — | $ | 425,307 | $ | — | $ | — | $ | 369,444 | $ | — | |||||||||||||
U.S. Treasury and federal agency obligations | — | 106,296 | — | — | 80,973 | — | |||||||||||||||||||
Municipal bonds | — | — | — | — | 78,590 | — | |||||||||||||||||||
$ | — | $ | 531,603 | $ | — | $ | — | $ | 529,007 | $ | — | ||||||||||||||
Derivative assets 1 | |||||||||||||||||||||||||
Interest rate lock commitments | $ | — | $ | 216 | $ | — | $ | — | $ | 488 | $ | — | |||||||||||||
Forward commitments | — | 1 | — | 98 | 43 | — | |||||||||||||||||||
$ | — | $ | 217 | $ | — | $ | 98 | $ | 531 | $ | — | ||||||||||||||
Derivative liabilities 1 | |||||||||||||||||||||||||
Interest rate lock commitments | $ | — | $ | 1 | $ | — | $ | — | $ | 24 | $ | — | |||||||||||||
Forward commitments | 23 | 3 | — | — | 2 | — | |||||||||||||||||||
$ | 23 | $ | 4 | $ | — | $ | — | $ | 26 | $ | — | ||||||||||||||
1 Derivatives are carried at fair value with changes in value reflected in the balance sheet in other assets or other liabilities and included in mortgage banking income. | |||||||||||||||||||||||||
Schedule of assets measured at fair value on a nonrecurring basis | ' | ||||||||||||||||||||||||
Assets measured at fair value on a nonrecurring basis were as follows: | |||||||||||||||||||||||||
Fair value measurements | |||||||||||||||||||||||||
(in millions) | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Loans | |||||||||||||||||||||||||
30-Sep-14 | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||||||||
31-Dec-13 | 4 | — | — | 4 | |||||||||||||||||||||
Real estate acquired in settlement of loans | |||||||||||||||||||||||||
30-Sep-14 | $ | 1 | — | — | $ | 1 | |||||||||||||||||||
31-Dec-13 | — | — | — | — | |||||||||||||||||||||
Schedule of significant unobservable inputs used in the fair value measurement | ' | ||||||||||||||||||||||||
Key assumptions used in estimating the fair value of the bank’s mortgage servicing rights were as follows: | |||||||||||||||||||||||||
(dollars in thousands) | September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||
Unpaid principal balance | $ | 1,380,299 | $ | 1,329,815 | |||||||||||||||||||||
Weighted average note rate | 4.08 | % | 4.06 | % | |||||||||||||||||||||
Weighted average discount rate | 9.6 | % | 10.1 | % | |||||||||||||||||||||
Weighted average prepayment speed | 8.1 | % | 6.6 | % | |||||||||||||||||||||
For loans and real estate acquired in settlement of loans classified as Level 3 as of September 30, 2014 and December 31, 2013, the significant unobservable inputs used in the fair value measurement were as follows: | |||||||||||||||||||||||||
Significant unobservable | |||||||||||||||||||||||||
input value 1 | |||||||||||||||||||||||||
($ in thousands) | Fair value | Valuation technique | Significant unobservable input | Range | Weighted | ||||||||||||||||||||
Average | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Residential loans | $ | 1,928 | Fair value of property or collateral | Appraised value less 7% selling costs | 44-96% | 83% | |||||||||||||||||||
Commercial loans | 216 | Fair value of property or collateral | Fair value of business assets | 19% | |||||||||||||||||||||
Total loans | $ | 2,144 | |||||||||||||||||||||||
Real estate acquired in settlement of loans | $ | 554 | Fair value of property or collateral | Appraised value less 7% selling costs | 100% | 100% | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Residential loans | $ | 2,361 | Fair value of property or collateral | Appraised value less 7% selling costs | 44-96% | 87% | |||||||||||||||||||
Home equity lines of credit | 170 | Fair value of property or collateral | Appraised value less 7% selling costs | 45-50% | 50% | ||||||||||||||||||||
Commercial loans | 217 | Fair value of property or collateral | Fair value of business assets | 19% | |||||||||||||||||||||
Commercial loans | 1,668 | Discounted cash flows | Present value of expected future cash flows | 58% | |||||||||||||||||||||
Discount rate | 4.50% | ||||||||||||||||||||||||
Total loans | $ | 4,416 | |||||||||||||||||||||||
1 Represent percent of outstanding principal balance. |
Cash_flows_Tables
Cash flows (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Schedule of supplemental disclosures of cash and noncash activity | ' | ||||||||
Nine months ended September 30 | 2014 | 2013 | |||||||
(in millions) | |||||||||
Supplemental disclosures of cash flow information | |||||||||
HEI consolidated | |||||||||
Interest paid to non-affiliates | $ | 64 | $ | 62 | |||||
Income taxes paid | 31 | 6 | |||||||
Income taxes refunded | 24 | 4 | |||||||
Hawaiian Electric consolidated | |||||||||
Interest paid | 44 | 43 | |||||||
Income taxes paid | 6 | 6 | |||||||
Income taxes refunded | 8 | 32 | |||||||
Supplemental disclosures of noncash activities | |||||||||
HEI consolidated | |||||||||
Common stock dividends reinvested in HEI common stock 1 | — | 18 | |||||||
Increases in common stock related to director and officer compensatory plans | 4 | 3 | |||||||
Real estate acquired in settlement of loans | 2 | 4 | |||||||
Loans transferred from held-for-investment to held-for-sale | — | 25 | |||||||
Obligations to fund low income housing investments | 6 | — | |||||||
HEI consolidated and Hawaiian Electric consolidated | |||||||||
Additions to electric utility property, plant and equipment - unpaid invoices and other | 40 | 17 | |||||||
1 The amounts shown represent common stock dividends reinvested in HEI common stock under the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP) in noncash transactions. As of March 6, 2014, HEI began satisfying the share purchase requirements of the DRIP through open market purchases of its common stock rather than through new issuances. |
Basis_of_presentation_Basis_of1
Basis of presentation - Basis of presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Total revenues | $867,096 | $829,168 | $2,449,502 | $2,405,967 | ' |
Operating income | 91,102 | 88,038 | 261,683 | 237,070 | ' |
Interest expense, net—other than on deposit liabilities and other bank borrowings | -19,170 | -19,043 | -58,648 | -56,216 | ' |
Income before income taxes | 74,609 | 70,748 | 209,845 | 186,510 | ' |
Income taxes | 26,323 | 22,041 | 73,265 | 62,590 | ' |
Property, plant and equipment, net of accumulated depreciation | 4,048,106 | ' | 4,048,106 | ' | 3,865,514 |
Accumulated depreciation | -2,241,677 | ' | -2,241,677 | ' | -2,192,422 |
Other assets | 505,226 | ' | 505,226 | ' | 512,627 |
As previously filed | ' | ' | ' | ' | ' |
Total revenues | ' | 831,229 | ' | 2,412,023 | ' |
Operating income | ' | 90,099 | ' | 243,126 | ' |
Interest expense, net—other than on deposit liabilities and other bank borrowings | ' | -20,304 | ' | -59,705 | ' |
Income before income taxes | ' | 71,548 | ' | 189,077 | ' |
Income taxes | ' | 22,841 | ' | 65,157 | ' |
Property, plant and equipment, net of accumulated depreciation | ' | ' | ' | ' | 3,858,947 |
Accumulated depreciation | ' | ' | ' | ' | -2,191,199 |
Other assets | ' | ' | ' | ' | 519,194 |
Difference | ' | ' | ' | ' | ' |
Total revenues | ' | -2,061 | ' | -6,056 | ' |
Operating income | ' | -2,061 | ' | -6,056 | ' |
Interest expense, net—other than on deposit liabilities and other bank borrowings | ' | 1,261 | ' | 3,489 | ' |
Income before income taxes | ' | -800 | ' | -2,567 | ' |
Income taxes | ' | -800 | ' | -2,567 | ' |
Property, plant and equipment, net of accumulated depreciation | ' | ' | ' | ' | 6,567 |
Accumulated depreciation | ' | ' | ' | ' | -1,223 |
Other assets | ' | ' | ' | ' | -6,567 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' | ' | ' | ' |
Total revenues | 803,565 | 764,054 | 2,262,056 | 2,210,020 | ' |
Operating income | 76,156 | 69,853 | 216,890 | 179,949 | ' |
Income taxes | 23,042 | 18,258 | 64,686 | 49,210 | ' |
Property, plant and equipment, net of accumulated depreciation | 3,972,947 | ' | 3,972,947 | ' | 3,792,329 |
Other assets | ' | ' | ' | ' | 67,426 |
Hawaiian Electric Company, Inc. and Subsidiaries | As previously filed | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | ' | 73,993 |
Hawaiian Electric Company, Inc. and Subsidiaries | Difference | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | ' | ($6,567) |
Segment_financial_information_1
Segment financial information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Segment financial information | ' | ' | ' | ' | ' |
Total revenues | $867,096 | $829,168 | $2,449,502 | $2,405,967 | ' |
Income (loss) before income taxes | 74,609 | 70,748 | 209,845 | 186,510 | ' |
Income taxes (benefit) | 26,323 | 22,041 | 73,265 | 62,590 | ' |
Net income | 48,286 | 48,707 | 136,580 | 123,920 | ' |
Preferred stock dividends of subsidiaries | 471 | 471 | 1,417 | 1,417 | ' |
Net income for common stock | 47,815 | 48,236 | 135,163 | 122,503 | ' |
Assets | 10,670,471 | ' | 10,670,471 | ' | 10,340,044 |
Electric utility | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Total revenues | 803,565 | 764,054 | 2,262,056 | 2,210,020 | ' |
Income (loss) before income taxes | 62,419 | 56,573 | 174,711 | 141,645 | ' |
Income taxes (benefit) | 23,042 | 18,258 | 64,686 | 49,210 | ' |
Net income | 39,377 | 38,315 | 110,025 | 92,435 | ' |
Preferred stock dividends of subsidiaries | 498 | 498 | 1,496 | 1,496 | ' |
Net income for common stock | 38,879 | 37,817 | 108,529 | 90,939 | ' |
Assets | 5,225,162 | ' | 5,225,162 | ' | 5,087,129 |
Bank | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Total revenues | 63,536 | 65,058 | 187,771 | 195,841 | ' |
Income (loss) before income taxes | 19,572 | 22,808 | 58,244 | 69,265 | ' |
Income taxes (benefit) | 6,312 | 7,532 | 18,769 | 23,915 | ' |
Net income | 13,260 | 15,276 | 39,475 | 45,350 | ' |
Net income for common stock | 13,260 | 15,276 | 39,475 | 45,350 | ' |
Assets | 5,442,336 | ' | 5,442,336 | ' | 5,243,824 |
Other | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Total revenues | -5 | 56 | -325 | 106 | ' |
Income (loss) before income taxes | -7,382 | -8,633 | -23,110 | -24,400 | ' |
Income taxes (benefit) | -3,031 | -3,749 | -10,190 | -10,535 | ' |
Net income | -4,351 | -4,884 | -12,920 | -13,865 | ' |
Preferred stock dividends of subsidiaries | -27 | -27 | -79 | -79 | ' |
Net income for common stock | -4,324 | -4,857 | -12,841 | -13,786 | ' |
Assets | 2,973 | ' | 2,973 | ' | 9,091 |
Revenues from external customers | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Total revenues | ' | ' | 2,449,502 | 2,405,967 | ' |
Revenues from external customers | Electric utility | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Total revenues | 803,559 | 764,048 | 2,262,038 | 2,210,002 | ' |
Revenues from external customers | Bank | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Total revenues | ' | ' | 187,771 | 195,841 | ' |
Revenues from external customers | Other | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Total revenues | 1 | 62 | -307 | 124 | ' |
Intersegment revenues (eliminations) | Electric utility | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Total revenues | 6 | 6 | 18 | 18 | ' |
Intersegment revenues (eliminations) | Other | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Total revenues | ($6) | ($6) | ($18) | ($18) | ' |
Electric_utility_subsidiary_Ta1
Electric utility subsidiary - Taxes (Details) (Hawaiian Electric Company, Inc. and Subsidiaries, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' | ' | ' |
Revenue taxes | ' | ' | ' | ' |
Revenue taxes included in Operating revenues | $74 | $69 | $203 | $198 |
Revenue taxes included as expense in Taxes, other than income taxes | $74 | $69 | $203 | $198 |
Electric_utility_subsidiary_Un
Electric utility subsidiary - Unconsolidated variable interest entities (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 31, 2004 | Mar. 31, 2004 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 31, 2004 | Mar. 31, 2004 | |
Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light Company, Inc. (HELCO) | Maui Electric Company (MECO) | Maui Electric Company (MECO) | Maui Electric Company (MECO) | Maui Electric Company (MECO) | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | ||||||
entity | kW | AES Hawaii, Inc. (AES Hawaii) | AES Hawaii, Inc. (AES Hawaii) | AES Hawaii, Inc. (AES Hawaii) | AES Hawaii, Inc. (AES Hawaii) | Kalaeloa Partners, L.P. (Kalaeloa) | Kalaeloa Partners, L.P. (Kalaeloa) | Kalaeloa Partners, L.P. (Kalaeloa) | Kalaeloa Partners, L.P. (Kalaeloa) | Hamakua Energy Partners, L.P. (HEP) | Hamakua Energy Partners, L.P. (HEP) | Hamakua Energy Partners, L.P. (HEP) | Hamakua Energy Partners, L.P. (HEP) | HPOWER | HPOWER | HPOWER | HPOWER | Other IPPs | Other IPPs | Other IPPs | Other IPPs | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaii Electric Light Company, Inc. (HELCO) | |||||||||||||||||||
agreement | MW | 2004 Trust Preferred Securities | 2004 Trust Preferred Securities | 2004 Trust Preferred Securities | 2004 Trust Preferred Securities | Trust Common Securities | Trust Common Securities | Trust Common Securities | Trust Common Securities | |||||||||||||||||||||||||||||||||||||||||
entity | security | |||||||||||||||||||||||||||||||||||||||||||||||||
Unconsolidated variable interest entities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of 2004 Trust Preferred Securities issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend rate on 2004 Trust Preferred Securities (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Liquidation preference | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | ' | ' | ' | ' | ' | ' | $1,500,000 | ' |
Principal amount of 2004 Debentures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 |
Investment in 2004 Debentures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51,500,000 | ' | 51,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance of Trust Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | 50,000,000 | 1,500,000 | ' | 1,500,000 | ' | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend distributions on Trust Preferred Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | 2,400,000 | ' | ' | ' | ' | ' | ' |
Common dividend | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | ' | ' | ' |
Power purchase agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of power purchase agreements (PPAs) | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum capacity of small power production facilities (in kilowatts) | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of entities currently not required to be consolidated as VIEs | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of power purchase from AES Hawaii, Inc. (AES Hawaii), Kalaeloa Partners, L.P. (Kalaeloa), Hamakua Energy Partners, L.P. (HEP) and HPOWER | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity, Unavailability of Information, Number of Entities | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases from IPPs | 193,000,000 | 195,000,000 | 546,000,000 | 527,000,000 | ' | 142,121,000 | 143,280,000 | 406,895,000 | 389,706,000 | 38,000,000 | 38,000,000 | 107,000,000 | 98,000,000 | 73,000,000 | 80,000,000 | 214,000,000 | 223,000,000 | 16,000,000 | 15,000,000 | 36,000,000 | 36,000,000 | 18,000,000 | 17,000,000 | 50,000,000 | 44,000,000 | 48,000,000 | 45,000,000 | 139,000,000 | 126,000,000 | 34,166,000 | 34,480,000 | 91,827,000 | 93,880,000 | 16,595,000 | 17,101,000 | 47,399,000 | 43,083,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of firm capacity producers declining to provide financial information to determine primary beneficiary status | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum potential number of IPP entities consolidated into company in the future | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Power purchase capacity that Increases from initial capacity (in megawatts) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 180 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of years entity entered under power purchase agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '25 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Power purchase capacity that Increases from initial capacity (in megawatts) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 208 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | $177,495,000 | ' | $177,495,000 | ' | $212,331,000 | ' | ' | ' | ' | ' | ' | ' | ' | $16,000,000 | ' | $16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Electric_utility_subsidiary_Co
Electric utility subsidiary - Commitments and contingencies (Details) (USD $) | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||
Apr. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Apr. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 07, 2014 | Oct. 31, 2013 | Mar. 01, 2014 | Mar. 01, 2014 | |
order | item | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Hawaiian Electric Company | Maui Electric Company (MECO) | Maui Electric Company (MECO) | Maui Electric Company (MECO) | Maui Electric Company (MECO) | Maui Electric Company (MECO) | Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light Company, Inc. (HELCO) | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | Minimum | |
Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||||
Environmental regulation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of EGUs impacted by proposed rules of MATS | ' | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of extension resulting in MATS compliance date | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for which operations was stopped prior to merger | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional accrued investigation and estimated cleanup costs | ' | ' | ' | ' | ' | ' | $3,600,000 | ' | $3,600,000 | ' | $3,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of reduction in GHG emissions by 2020 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.00% | ' | 16.00% | ' | ' | ' | ' | ' |
Estimated annual fee for greenhouse gas emissions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' |
Annual revenue | ' | ' | 579,777,000 | 547,434,000 | 1,623,223,000 | 1,576,068,000 | 112,656,000 | 108,699,000 | 319,265,000 | 313,725,000 | ' | 111,154,000 | 107,957,000 | 319,629,000 | 320,330,000 | ' | 803,565,000 | 764,054,000 | 2,262,056,000 | 2,210,020,000 | ' | ' | ' | ' |
Asset retirement obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact on earnings from recognition of AROs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Changes in the asset retirement obligation liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, beginning of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,106,000 | 48,431,000 | ' | ' | ' | ' |
Accretion expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 816,000 | 833,000 | ' | ' | ' | ' |
Liabilities settled | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -11,338,000 | -1,165,000 | ' | ' | ' | ' |
Revisions in estimated cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -916,000 | ' | ' | ' | ' |
Balance, end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,584,000 | 47,183,000 | 32,584,000 | 47,183,000 | ' | ' | ' | ' |
Baseline capital project value to determine revenue adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,500,000 | ' | ' |
Proposed rate base adjustment, percent of previous rate base adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' |
Proposed effective interest rate, revenue balancing account | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | 1.25% |
Effective interest rate, revenue balancing account | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' |
Number of orders from regulatory agency | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period to file required plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '120 days | ' | ' | ' | ' | ' | ' | ' | ' |
Period to file demand response portfolio plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' |
Period to file implementation plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 days | ' | ' | ' | ' | ' | ' | ' | ' |
Period for full implementation of plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' |
Period to file action plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' |
Proposal to file implementation proposal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '120 days | ' | ' | ' | ' | ' | ' | ' | ' |
Electric_utility_subsidiary_Su
Electric utility subsidiary - Subsequent event (Details) | 0 Months Ended | 9 Months Ended | |
Aug. 08, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | |
t | |||
Electric utility subsidiary [Abstract] | ' | ' | ' |
Term of agreement | '15 years | ' | ' |
Purchase agreement, period of first tranche | ' | '5 years | ' |
Purchase agreement, period of second tranche | ' | '5 years | ' |
Purchase agreement, period of third tranche | ' | '5 years | ' |
Liquefaction capacity purchases, year one | ' | ' | 800,000 |
Liquefaction capacity purchases, year two | ' | ' | 800,000 |
Liquefaction capacity purchases, year three | ' | ' | 800,000 |
Liquefaction capacity purchases, year four | ' | ' | 800,000 |
Liquefaction capacity purchases, year five | ' | ' | 800,000 |
Liquefaction capacity purchases, year six | ' | ' | 700,000 |
Liquefaction capacity purchases, year seven | ' | ' | 700,000 |
Liquefaction capacity purchases, year eight | ' | ' | 700,000 |
Liquefaction capacity purchases, year nine | ' | ' | 700,000 |
Liquefaction capacity purchases, year ten | ' | ' | 700,000 |
Liquefaction capacity purchases, year eleven | ' | ' | 600,000 |
Liquefaction capacity purchases, year twelve | ' | ' | 600,000 |
Liquefaction capacity purchases, year thirteen | ' | ' | 600,000 |
Liquefaction capacity purchases, year fourteen | ' | ' | 600,000 |
Liquefaction capacity purchases, year fifteen | ' | ' | 600,000 |
Electric_utility_subsidiary_Co1
Electric utility subsidiary - Consolidating financial statements (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Operating expenses | ' | ' | ' | ' |
Purchased power | $193,000 | $195,000 | $546,000 | $527,000 |
Total expenses | 775,994 | 741,130 | 2,187,819 | 2,168,897 |
Operating income | 91,102 | 88,038 | 261,683 | 237,070 |
Other income (loss) | ' | ' | ' | ' |
Allowance for equity funds used during construction | 1,937 | 1,255 | 4,933 | 4,030 |
Interest and other charges | ' | ' | ' | ' |
Allowance for borrowed funds used during construction | 740 | 498 | 1,877 | 1,626 |
Income taxes | 26,323 | 22,041 | 73,265 | 62,590 |
Net income | 48,286 | 48,707 | 136,580 | 123,920 |
Preferred stock dividends of subsidiaries | 471 | 471 | 1,417 | 1,417 |
Net income for common stock | 47,815 | 48,236 | 135,163 | 122,503 |
Hawaiian Electric Company | ' | ' | ' | ' |
Revenues | 579,777 | 547,434 | 1,623,223 | 1,576,068 |
Operating expenses | ' | ' | ' | ' |
Fuel oil | 229,068 | 206,478 | 628,164 | 631,824 |
Purchased power | 142,121 | 143,280 | 406,895 | 389,706 |
Other operation and maintenance | 71,584 | 71,498 | 199,091 | 212,474 |
Depreciation | 27,302 | 25,442 | 81,903 | 75,150 |
Taxes, other than income taxes | 54,412 | 51,781 | 152,545 | 149,282 |
Total expenses | 524,487 | 498,479 | 1,468,598 | 1,458,436 |
Operating income | 55,290 | 48,955 | 154,625 | 117,632 |
Other income (loss) | ' | ' | ' | ' |
Allowance for equity funds used during construction | 1,668 | 914 | 4,557 | 3,144 |
Equity in earnings of subsidiaries | 9,800 | 10,794 | 28,576 | 30,446 |
Interest expense and other charges, net | -11,196 | -9,883 | -33,236 | -28,723 |
Interest and other charges | ' | ' | ' | ' |
Allowance for borrowed funds used during construction | 634 | 358 | 1,728 | 1,268 |
Income before income taxes | 56,196 | 51,138 | 156,250 | 123,767 |
Income taxes | 17,047 | 13,051 | 46,911 | 32,018 |
Net income | 39,149 | 38,087 | 109,339 | 91,749 |
Net income attributable to Hawaiian Electric | 39,149 | 38,087 | 109,339 | 91,749 |
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 810 | 810 |
Net income for common stock | 38,879 | 37,817 | 108,529 | 90,939 |
HELCO | ' | ' | ' | ' |
Revenues | 111,154 | 107,957 | 319,629 | 320,330 |
Operating expenses | ' | ' | ' | ' |
Fuel oil | 29,555 | 27,615 | 92,234 | 94,120 |
Purchased power | 34,166 | 34,480 | 91,827 | 93,880 |
Other operation and maintenance | 19,837 | 16,793 | 48,701 | 46,158 |
Depreciation | 8,975 | 8,547 | 26,926 | 25,641 |
Taxes, other than income taxes | 10,607 | 10,457 | 30,127 | 30,113 |
Total expenses | 103,140 | 97,892 | 289,815 | 289,912 |
Operating income | 8,014 | 10,065 | 29,814 | 30,418 |
Other income (loss) | ' | ' | ' | ' |
Allowance for equity funds used during construction | 142 | 222 | 328 | 552 |
Interest expense and other charges, net | -2,811 | -2,920 | -8,411 | -8,566 |
Interest and other charges | ' | ' | ' | ' |
Allowance for borrowed funds used during construction | 54 | 91 | 126 | 226 |
Income before income taxes | 5,399 | 7,458 | 21,857 | 22,630 |
Income taxes | 1,965 | 1,881 | 8,149 | 7,486 |
Net income | 3,434 | 5,577 | 13,708 | 15,144 |
Preferred stock dividends of subsidiaries | 133 | 133 | 400 | 400 |
Net income attributable to Hawaiian Electric | 3,301 | 5,444 | 13,308 | 14,744 |
Net income for common stock | 3,301 | 5,444 | 13,308 | 14,744 |
Maui Electric | ' | ' | ' | ' |
Revenues | 112,656 | 108,699 | 319,265 | 313,725 |
Operating expenses | ' | ' | ' | ' |
Fuel oil | 50,809 | 49,267 | 145,591 | 151,794 |
Purchased power | 16,595 | 17,101 | 47,399 | 43,083 |
Other operation and maintenance | 16,892 | 16,221 | 47,691 | 42,089 |
Depreciation | 5,317 | 5,006 | 15,961 | 15,074 |
Taxes, other than income taxes | 10,169 | 10,234 | 30,111 | 29,681 |
Total expenses | 99,782 | 97,829 | 286,753 | 281,721 |
Operating income | 12,874 | 10,870 | 32,512 | 32,004 |
Other income (loss) | ' | ' | ' | ' |
Allowance for equity funds used during construction | 127 | 119 | 48 | 334 |
Interest expense and other charges, net | -2,429 | -2,266 | -7,403 | -6,774 |
Interest and other charges | ' | ' | ' | ' |
Allowance for borrowed funds used during construction | 52 | 49 | 23 | 132 |
Income before income taxes | 10,624 | 8,772 | 25,180 | 25,696 |
Income taxes | 4,030 | 3,326 | 9,626 | 9,706 |
Net income | 6,594 | 5,446 | 15,554 | 15,990 |
Preferred stock dividends of subsidiaries | 95 | 95 | 286 | 286 |
Net income attributable to Hawaiian Electric | 6,499 | 5,351 | 15,268 | 15,704 |
Net income for common stock | 6,499 | 5,351 | 15,268 | 15,704 |
Other subsidiaries | ' | ' | ' | ' |
Revenues | 0 | 0 | 0 | 0 |
Operating expenses | ' | ' | ' | ' |
Other operation and maintenance | 0 | 1 | 0 | 2 |
Total expenses | 0 | 1 | 0 | 2 |
Operating income | 0 | -1 | 0 | -2 |
Interest and other charges | ' | ' | ' | ' |
Income before income taxes | 0 | -1 | 0 | -2 |
Income taxes | 0 | 0 | 0 | 0 |
Net income | 0 | -1 | 0 | -2 |
Net income attributable to Hawaiian Electric | 0 | -1 | 0 | -2 |
Net income for common stock | 0 | -1 | 0 | -2 |
Consolidating adjustments | ' | ' | ' | ' |
Revenues | -22 | -36 | -61 | -103 |
Operating expenses | ' | ' | ' | ' |
Operating income | -22 | -36 | -61 | -103 |
Other income (loss) | ' | ' | ' | ' |
Equity in earnings of subsidiaries | -9,800 | -10,794 | -28,576 | -30,446 |
Interest expense and other charges, net | 22 | 36 | 61 | 103 |
Interest and other charges | ' | ' | ' | ' |
Income before income taxes | -9,800 | -10,794 | -28,576 | -30,446 |
Income taxes | 0 | 0 | 0 | 0 |
Net income | -9,800 | -10,794 | -28,576 | -30,446 |
Net income attributable to Hawaiian Electric | -9,800 | -10,794 | -28,576 | -30,446 |
Net income for common stock | -9,800 | -10,794 | -28,576 | -30,446 |
HECO Consolidated | ' | ' | ' | ' |
Revenues | 803,565 | 764,054 | 2,262,056 | 2,210,020 |
Operating expenses | ' | ' | ' | ' |
Fuel oil | 309,432 | 283,360 | 865,989 | 877,738 |
Purchased power | 192,882 | 194,861 | 546,121 | 526,669 |
Other operation and maintenance | 108,313 | 104,513 | 295,483 | 300,723 |
Depreciation | 41,594 | 38,995 | 124,790 | 115,865 |
Taxes, other than income taxes | 75,188 | 72,472 | 212,783 | 209,076 |
Total expenses | 727,409 | 694,201 | 2,045,166 | 2,030,071 |
Operating income | 76,156 | 69,853 | 216,890 | 179,949 |
Other income (loss) | ' | ' | ' | ' |
Allowance for equity funds used during construction | 1,937 | 1,255 | 4,933 | 4,030 |
Interest expense and other charges, net | -16,414 | -15,033 | -48,989 | -43,960 |
Interest and other charges | ' | ' | ' | ' |
Allowance for borrowed funds used during construction | 740 | 498 | 1,877 | 1,626 |
Income before income taxes | 62,419 | 56,573 | 174,711 | 141,645 |
Income taxes | 23,042 | 18,258 | 64,686 | 49,210 |
Net income | 39,377 | 38,315 | 110,025 | 92,435 |
Preferred stock dividends of subsidiaries | 228 | 228 | 686 | 686 |
Net income attributable to Hawaiian Electric | 39,149 | 38,087 | 109,339 | 91,749 |
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 810 | 810 |
Net income for common stock | $38,879 | $37,817 | $108,529 | $90,939 |
Electric_utility_subsidiary_Co2
Electric utility subsidiary - Consolidating financial statements (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net income for common stock | $47,815 | $48,236 | $135,163 | $122,503 |
Retirement benefit plans: | ' | ' | ' | ' |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $1,626, $3,295, $4,878 and $9,885 for the respective periods | 2,829 | 5,789 | 8,515 | 17,490 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $1,619, $3,284, $4,858 and $9,852 for the respective periods | -2,542 | -5,156 | -7,627 | -15,468 |
Other comprehensive income (loss), net of taxes | -1,311 | -897 | 2,756 | -9,263 |
Comprehensive income | 46,504 | 47,339 | 137,919 | 113,240 |
Hawaiian Electric Company | ' | ' | ' | ' |
Net income for common stock | 38,879 | 37,817 | 108,529 | 90,939 |
Retirement benefit plans: | ' | ' | ' | ' |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $1,626, $3,295, $4,878 and $9,885 for the respective periods | 2,552 | 5,173 | 7,659 | 15,520 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $1,619, $3,284, $4,858 and $9,852 for the respective periods | -2,542 | -5,156 | -7,627 | -15,468 |
Other comprehensive income (loss), net of taxes | 10 | 17 | 32 | 52 |
Comprehensive income | 38,889 | 37,834 | 108,561 | 90,991 |
HELCO | ' | ' | ' | ' |
Net income for common stock | 3,301 | 5,444 | 13,308 | 14,744 |
Retirement benefit plans: | ' | ' | ' | ' |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $1,626, $3,295, $4,878 and $9,885 for the respective periods | 317 | 720 | 953 | 2,160 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $1,619, $3,284, $4,858 and $9,852 for the respective periods | -319 | -721 | -955 | -2,162 |
Other comprehensive income (loss), net of taxes | -2 | -1 | -2 | -2 |
Comprehensive income | 3,299 | 5,443 | 13,306 | 14,742 |
Maui Electric | ' | ' | ' | ' |
Net income for common stock | 6,499 | 5,351 | 15,268 | 15,704 |
Retirement benefit plans: | ' | ' | ' | ' |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $1,626, $3,295, $4,878 and $9,885 for the respective periods | 272 | 639 | 817 | 1,918 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $1,619, $3,284, $4,858 and $9,852 for the respective periods | -272 | -639 | -817 | -1,918 |
Other comprehensive income (loss), net of taxes | 0 | 0 | 0 | 0 |
Comprehensive income | 6,499 | 5,351 | 15,268 | 15,704 |
Other subsidiaries | ' | ' | ' | ' |
Net income for common stock | 0 | -1 | 0 | -2 |
Retirement benefit plans: | ' | ' | ' | ' |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $1,626, $3,295, $4,878 and $9,885 for the respective periods | 0 | 0 | 0 | 0 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $1,619, $3,284, $4,858 and $9,852 for the respective periods | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of taxes | 0 | 0 | 0 | 0 |
Comprehensive income | 0 | -1 | 0 | -2 |
Consolidating adjustments | ' | ' | ' | ' |
Net income for common stock | -9,800 | -10,794 | -28,576 | -30,446 |
Retirement benefit plans: | ' | ' | ' | ' |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $1,626, $3,295, $4,878 and $9,885 for the respective periods | -589 | -1,359 | -1,770 | -4,078 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $1,619, $3,284, $4,858 and $9,852 for the respective periods | 591 | 1,360 | 1,772 | 4,080 |
Other comprehensive income (loss), net of taxes | 2 | 1 | 2 | 2 |
Comprehensive income | -9,798 | -10,793 | -28,574 | -30,444 |
HECO Consolidated | ' | ' | ' | ' |
Net income for common stock | 38,879 | 37,817 | 108,529 | 90,939 |
Retirement benefit plans: | ' | ' | ' | ' |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $1,626, $3,295, $4,878 and $9,885 for the respective periods | 2,552 | 5,173 | 7,659 | 15,520 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $1,619, $3,284, $4,858 and $9,852 for the respective periods | -2,542 | -5,156 | -7,627 | -15,468 |
Other comprehensive income (loss), net of taxes | 10 | 17 | 32 | 52 |
Comprehensive income | $38,889 | $37,834 | $108,561 | $90,991 |
Electric_utility_subsidiary_Co3
Electric utility subsidiary - Consolidating financial statements (Details 3) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Utility plant, at cost | ' | ' | ' | ' |
Total property, plant and equipment, net | $4,048,106 | $3,865,514 | ' | ' |
Other long-term assets | ' | ' | ' | ' |
Total assets | 10,670,471 | 10,340,044 | ' | ' |
Capitalization | ' | ' | ' | ' |
Common stock equity | 1,801,408 | 1,727,070 | 1,655,465 | 1,593,865 |
Cumulative preferred stock — not subject to mandatory redemption | 0 | 0 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Interest and preferred dividends payable | 26,051 | 26,716 | ' | ' |
Deferred credits and other liabilities | ' | ' | ' | ' |
Deferred income taxes | 585,432 | 529,260 | ' | ' |
Contributions in aid of construction | 448,811 | 432,894 | ' | ' |
Total liabilities and shareholders’ equity | 10,670,471 | 10,340,044 | ' | ' |
Hawaiian Electric Company | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 5 | ' | ' | ' |
Utility plant, at cost | ' | ' | ' | ' |
Land | 43,816 | 43,407 | ' | ' |
Plant and equipment | 3,700,063 | 3,558,569 | ' | ' |
Less accumulated depreciation | -1,245,695 | -1,222,129 | ' | ' |
Construction in progress | 149,115 | 124,494 | ' | ' |
Utility property, plant and equipment, net | 2,647,299 | 2,504,341 | ' | ' |
Nonutility property, plant and equipment, less accumulated depreciation | 4,948 | 4,953 | ' | ' |
Total property, plant and equipment, net | 2,652,247 | 2,509,294 | ' | ' |
Investment in wholly owned subsidiaries, at equity | 532,766 | 523,674 | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 14,856 | 61,245 | 18,906 | 8,265 |
Advances to affiliates | 11,800 | 6,839 | ' | ' |
Customer accounts receivable, net | 132,809 | 121,282 | ' | ' |
Accrued unbilled revenues, net | 108,306 | 107,752 | ' | ' |
Other accounts receivable, net | 22,386 | 16,373 | ' | ' |
Fuel oil stock, at average cost | 88,285 | 99,613 | ' | ' |
Materials and supplies, at average cost | 36,502 | 37,377 | ' | ' |
Prepayments and other | 32,033 | 29,798 | ' | ' |
Regulatory assets | 44,736 | 54,979 | ' | ' |
Total current assets | 491,713 | 535,258 | ' | ' |
Other long-term assets | ' | ' | ' | ' |
Regulatory assets | 395,343 | 381,346 | ' | ' |
Unamortized debt expense | 5,830 | 6,051 | ' | ' |
Other | 42,203 | 42,163 | ' | ' |
Total other long-term assets | 443,376 | 429,560 | ' | ' |
Total assets | 4,120,102 | 3,997,786 | ' | ' |
Capitalization | ' | ' | ' | ' |
Common stock equity | 1,635,751 | 1,593,564 | 1,501,944 | 1,472,136 |
Cumulative preferred stock — not subject to mandatory redemption | 22,293 | 22,293 | ' | ' |
Long-term debt, net | 830,546 | 830,547 | ' | ' |
Total capitalization | 2,488,590 | 2,446,404 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Short-term borrowings from non-affiliates | 84,987 | ' | ' | ' |
Short-term borrowings from affiliate | 0 | 1,000 | ' | ' |
Accounts payable | 107,108 | 145,062 | ' | ' |
Interest and preferred dividends payable | 16,700 | 15,190 | ' | ' |
Taxes accrued | 165,787 | 175,790 | ' | ' |
Regulatory liabilities | 289 | 1,705 | ' | ' |
Other | 46,727 | 48,443 | ' | ' |
Total current liabilities | 421,598 | 387,190 | ' | ' |
Deferred credits and other liabilities | ' | ' | ' | ' |
Deferred income taxes | 404,144 | 359,621 | ' | ' |
Regulatory liabilities | 244,830 | 235,786 | ' | ' |
Unamortized tax credits | 49,609 | 44,931 | ' | ' |
Defined benefit pension and other postretirement benefit plans liability | 192,246 | 202,396 | ' | ' |
Other | 51,790 | 63,374 | ' | ' |
Total deferred credits and other liabilities | 942,619 | 906,108 | ' | ' |
Contributions in aid of construction | 267,295 | 258,084 | ' | ' |
Total liabilities and shareholders’ equity | 4,120,102 | 3,997,786 | ' | ' |
HELCO | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 0 | ' | ' | ' |
Utility plant, at cost | ' | ' | ' | ' |
Land | 5,464 | 5,460 | ' | ' |
Plant and equipment | 1,165,542 | 1,136,923 | ' | ' |
Less accumulated depreciation | -472,044 | -453,721 | ' | ' |
Construction in progress | 13,267 | 7,709 | ' | ' |
Utility property, plant and equipment, net | 712,229 | 696,371 | ' | ' |
Nonutility property, plant and equipment, less accumulated depreciation | 82 | 82 | ' | ' |
Total property, plant and equipment, net | 712,311 | 696,453 | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 809 | 1,326 | 2,754 | 5,441 |
Advances to affiliates | 0 | 1,000 | ' | ' |
Customer accounts receivable, net | 31,023 | 28,088 | ' | ' |
Accrued unbilled revenues, net | 16,474 | 17,100 | ' | ' |
Other accounts receivable, net | 6,044 | 4,265 | ' | ' |
Fuel oil stock, at average cost | 13,959 | 14,178 | ' | ' |
Materials and supplies, at average cost | 7,870 | 6,883 | ' | ' |
Prepayments and other | 6,112 | 8,334 | ' | ' |
Regulatory assets | 4,855 | 6,931 | ' | ' |
Total current assets | 87,146 | 88,105 | ' | ' |
Other long-term assets | ' | ' | ' | ' |
Regulatory assets | 66,004 | 64,552 | ' | ' |
Unamortized debt expense | 1,485 | 1,580 | ' | ' |
Other | 11,889 | 11,270 | ' | ' |
Total other long-term assets | 79,378 | 77,402 | ' | ' |
Total assets | 878,835 | 861,960 | ' | ' |
Capitalization | ' | ' | ' | ' |
Common stock equity | 279,388 | 274,802 | 272,860 | 268,908 |
Cumulative preferred stock — not subject to mandatory redemption | 7,000 | 7,000 | ' | ' |
Long-term debt, net | 190,000 | 189,998 | ' | ' |
Total capitalization | 476,388 | 471,800 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Current portion of long-term debt | 11,400 | 11,400 | ' | ' |
Short-term borrowings from affiliate | 1,000 | ' | ' | ' |
Accounts payable | 27,077 | 24,383 | ' | ' |
Interest and preferred dividends payable | 3,772 | 3,885 | ' | ' |
Taxes accrued | 35,837 | 37,899 | ' | ' |
Regulatory liabilities | 0 | 0 | ' | ' |
Other | 10,596 | 9,033 | ' | ' |
Total current liabilities | 89,682 | 86,600 | ' | ' |
Deferred credits and other liabilities | ' | ' | ' | ' |
Deferred income taxes | 84,905 | 79,947 | ' | ' |
Regulatory liabilities | 79,389 | 76,475 | ' | ' |
Unamortized tax credits | 14,914 | 14,245 | ' | ' |
Defined benefit pension and other postretirement benefit plans liability | 26,435 | 28,427 | ' | ' |
Other | 13,347 | 14,703 | ' | ' |
Total deferred credits and other liabilities | 218,990 | 213,797 | ' | ' |
Contributions in aid of construction | 93,775 | 89,763 | ' | ' |
Total liabilities and shareholders’ equity | 878,835 | 861,960 | ' | ' |
Maui Electric | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 0 | ' | ' | ' |
Utility plant, at cost | ' | ' | ' | ' |
Land | 3,064 | 3,016 | ' | ' |
Plant and equipment | 1,036,792 | 1,006,383 | ' | ' |
Less accumulated depreciation | -449,806 | -435,379 | ' | ' |
Construction in progress | 16,808 | 11,030 | ' | ' |
Utility property, plant and equipment, net | 606,858 | 585,050 | ' | ' |
Nonutility property, plant and equipment, less accumulated depreciation | 1,531 | 1,532 | ' | ' |
Total property, plant and equipment, net | 608,389 | 586,582 | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 2,621 | 153 | 3,423 | 3,349 |
Customer accounts receivable, net | 25,901 | 26,078 | ' | ' |
Accrued unbilled revenues, net | 18,373 | 19,272 | ' | ' |
Other accounts receivable, net | 3,070 | 2,451 | ' | ' |
Fuel oil stock, at average cost | 16,059 | 20,296 | ' | ' |
Materials and supplies, at average cost | 16,267 | 14,784 | ' | ' |
Prepayments and other | 12,358 | 16,140 | ' | ' |
Regulatory assets | 5,109 | 7,828 | ' | ' |
Total current assets | 99,758 | 107,002 | ' | ' |
Other long-term assets | ' | ' | ' | ' |
Regulatory assets | 59,665 | 60,288 | ' | ' |
Unamortized debt expense | 1,304 | 1,372 | ' | ' |
Other | 13,799 | 13,993 | ' | ' |
Total other long-term assets | 74,768 | 75,653 | ' | ' |
Total assets | 782,915 | 769,237 | ' | ' |
Capitalization | ' | ' | ' | ' |
Common stock equity | 253,277 | 248,771 | 234,118 | 228,927 |
Cumulative preferred stock — not subject to mandatory redemption | 5,000 | 5,000 | ' | ' |
Long-term debt, net | 186,000 | 186,000 | ' | ' |
Total capitalization | 444,277 | 439,771 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Short-term borrowings from affiliate | 10,800 | 6,839 | ' | ' |
Accounts payable | 17,793 | 20,114 | ' | ' |
Interest and preferred dividends payable | 3,936 | 2,585 | ' | ' |
Taxes accrued | 35,090 | 37,171 | ' | ' |
Regulatory liabilities | 239 | 211 | ' | ' |
Other | 17,062 | 15,424 | ' | ' |
Total current liabilities | 84,920 | 82,344 | ' | ' |
Deferred credits and other liabilities | ' | ' | ' | ' |
Deferred income taxes | 76,450 | 67,593 | ' | ' |
Regulatory liabilities | 32,343 | 35,122 | ' | ' |
Unamortized tax credits | 14,745 | 14,363 | ' | ' |
Defined benefit pension and other postretirement benefit plans liability | 29,657 | 31,339 | ' | ' |
Other | 12,782 | 13,658 | ' | ' |
Total deferred credits and other liabilities | 165,977 | 162,075 | ' | ' |
Contributions in aid of construction | 87,741 | 85,047 | ' | ' |
Total liabilities and shareholders’ equity | 782,915 | 769,237 | ' | ' |
Other subsidiaries | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 101 | 101 | 102 | 104 |
Total current assets | 101 | 101 | ' | ' |
Other long-term assets | ' | ' | ' | ' |
Total assets | 101 | 101 | ' | ' |
Capitalization | ' | ' | ' | ' |
Common stock equity | 101 | 101 | 102 | 104 |
Total capitalization | 101 | 101 | ' | ' |
Deferred credits and other liabilities | ' | ' | ' | ' |
Total liabilities and shareholders’ equity | 101 | 101 | ' | ' |
Consolidating adjustments | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 0 | ' | ' | ' |
Utility plant, at cost | ' | ' | ' | ' |
Investment in wholly owned subsidiaries, at equity | -532,766 | -523,674 | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | 0 | 0 |
Advances to affiliates | -11,800 | -7,839 | ' | ' |
Other accounts receivable, net | -11,992 | -9,027 | ' | ' |
Prepayments and other | -233 | -1,415 | ' | ' |
Total current assets | -24,025 | -18,281 | ' | ' |
Other long-term assets | ' | ' | ' | ' |
Total assets | -556,791 | -541,955 | ' | ' |
Capitalization | ' | ' | ' | ' |
Common stock equity | -532,766 | -523,674 | -507,080 | -497,939 |
Total capitalization | -532,766 | -523,674 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Short-term borrowings from affiliate | -11,800 | -7,839 | ' | ' |
Interest and preferred dividends payable | -7 | -8 | ' | ' |
Taxes accrued | -233 | -1,415 | ' | ' |
Regulatory liabilities | 0 | 0 | ' | ' |
Other | -11,985 | -9,019 | ' | ' |
Total current liabilities | -24,025 | -18,281 | ' | ' |
Deferred credits and other liabilities | ' | ' | ' | ' |
Total liabilities and shareholders’ equity | -556,791 | -541,955 | ' | ' |
HECO Consolidated | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 5 | ' | ' | ' |
Utility plant, at cost | ' | ' | ' | ' |
Land | 52,344 | 51,883 | ' | ' |
Plant and equipment | 5,902,397 | 5,701,875 | ' | ' |
Less accumulated depreciation | -2,167,545 | -2,111,229 | ' | ' |
Construction in progress | 179,190 | 143,233 | ' | ' |
Utility property, plant and equipment, net | 3,966,386 | 3,785,762 | ' | ' |
Nonutility property, plant and equipment, less accumulated depreciation | 6,561 | 6,567 | ' | ' |
Total property, plant and equipment, net | 3,972,947 | 3,792,329 | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 18,387 | 62,825 | 25,185 | 17,159 |
Customer accounts receivable, net | 189,733 | 175,448 | ' | ' |
Accrued unbilled revenues, net | 143,153 | 144,124 | ' | ' |
Other accounts receivable, net | 19,508 | 14,062 | ' | ' |
Fuel oil stock, at average cost | 118,303 | 134,087 | ' | ' |
Materials and supplies, at average cost | 60,639 | 59,044 | ' | ' |
Prepayments and other | 50,270 | 52,857 | ' | ' |
Regulatory assets | 54,700 | 69,738 | ' | ' |
Total current assets | 654,693 | 712,185 | ' | ' |
Other long-term assets | ' | ' | ' | ' |
Regulatory assets | 521,012 | 506,186 | ' | ' |
Unamortized debt expense | 8,619 | 9,003 | ' | ' |
Other | 67,891 | 67,426 | ' | ' |
Total other long-term assets | 597,522 | 582,615 | ' | ' |
Total assets | 5,225,162 | 5,087,129 | ' | ' |
Capitalization | ' | ' | ' | ' |
Common stock equity | 1,635,751 | 1,593,564 | 1,501,944 | 1,472,136 |
Cumulative preferred stock — not subject to mandatory redemption | 34,293 | 34,293 | ' | ' |
Long-term debt, net | 1,206,546 | 1,206,545 | ' | ' |
Total capitalization | 2,876,590 | 2,834,402 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Current portion of long-term debt | 11,400 | 11,400 | ' | ' |
Short-term borrowings from non-affiliates | 84,987 | 0 | ' | ' |
Accounts payable | 151,978 | 189,559 | ' | ' |
Interest and preferred dividends payable | 24,401 | 21,652 | ' | ' |
Taxes accrued | 236,481 | 249,445 | ' | ' |
Regulatory liabilities | 528 | 1,916 | ' | ' |
Other | 62,400 | 63,881 | ' | ' |
Total current liabilities | 572,175 | 537,853 | ' | ' |
Deferred credits and other liabilities | ' | ' | ' | ' |
Deferred income taxes | 565,499 | 507,161 | ' | ' |
Regulatory liabilities | 356,562 | 347,383 | ' | ' |
Unamortized tax credits | 79,268 | 73,539 | ' | ' |
Defined benefit pension and other postretirement benefit plans liability | 248,338 | 262,162 | ' | ' |
Other | 77,919 | 91,735 | ' | ' |
Total deferred credits and other liabilities | 1,327,586 | 1,281,980 | ' | ' |
Contributions in aid of construction | 448,811 | 432,894 | ' | ' |
Total liabilities and shareholders’ equity | $5,225,162 | $5,087,129 | ' | ' |
Electric_utility_subsidiary_Co4
Electric utility subsidiary - Consolidating financial statements (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Balance | ' | ' | $1,727,070 | $1,593,865 |
Net income for common stock | 47,815 | 48,236 | 135,163 | 122,503 |
Other comprehensive income (loss), net of taxes | -1,311 | -897 | 2,756 | -9,263 |
Common stock dividends | ' | ' | -94,711 | -91,739 |
Balance | 1,801,408 | 1,655,465 | 1,801,408 | 1,655,465 |
Hawaiian Electric Company | ' | ' | ' | ' |
Balance | ' | ' | 1,593,564 | 1,472,136 |
Net income for common stock | 38,879 | 37,817 | 108,529 | 90,939 |
Other comprehensive income (loss), net of taxes | 10 | 17 | 32 | 52 |
Common stock dividends | ' | ' | -66,369 | -61,183 |
Common stock issuance expenses | ' | ' | -5 | ' |
Balance | 1,635,751 | 1,501,944 | 1,635,751 | 1,501,944 |
HELCO | ' | ' | ' | ' |
Balance | ' | ' | 274,802 | 268,908 |
Net income for common stock | 3,301 | 5,444 | 13,308 | 14,744 |
Other comprehensive income (loss), net of taxes | -2 | -1 | -2 | -2 |
Common stock dividends | ' | ' | -8,720 | -10,790 |
Common stock issuance expenses | ' | ' | 0 | ' |
Balance | 279,388 | 272,860 | 279,388 | 272,860 |
Maui Electric | ' | ' | ' | ' |
Balance | ' | ' | 248,771 | 228,927 |
Net income for common stock | 6,499 | 5,351 | 15,268 | 15,704 |
Other comprehensive income (loss), net of taxes | 0 | 0 | 0 | 0 |
Common stock dividends | ' | ' | -10,762 | -10,513 |
Common stock issuance expenses | ' | ' | 0 | ' |
Balance | 253,277 | 234,118 | 253,277 | 234,118 |
Other subsidiaries | ' | ' | ' | ' |
Balance | ' | ' | 101 | 104 |
Net income for common stock | 0 | -1 | 0 | -2 |
Other comprehensive income (loss), net of taxes | 0 | 0 | 0 | 0 |
Balance | 101 | 102 | 101 | 102 |
Consolidating adjustments | ' | ' | ' | ' |
Balance | ' | ' | -523,674 | -497,939 |
Net income for common stock | -9,800 | -10,794 | -28,576 | -30,446 |
Other comprehensive income (loss), net of taxes | 2 | 1 | 2 | 2 |
Common stock dividends | ' | ' | 19,482 | 21,303 |
Common stock issuance expenses | ' | ' | 0 | ' |
Balance | -532,766 | -507,080 | -532,766 | -507,080 |
HECO Consolidated | ' | ' | ' | ' |
Balance | ' | ' | 1,593,564 | 1,472,136 |
Net income for common stock | 38,879 | 37,817 | 108,529 | 90,939 |
Other comprehensive income (loss), net of taxes | 10 | 17 | 32 | 52 |
Common stock dividends | ' | ' | -66,369 | -61,183 |
Common stock issuance expenses | ' | ' | -5 | ' |
Balance | $1,635,751 | $1,501,944 | $1,635,751 | $1,501,944 |
Electric_utility_subsidiary_Co5
Electric utility subsidiary - Consolidating financial statements (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities | ' | ' | ' | ' |
Net income | $48,286 | $48,707 | $136,580 | $123,920 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Depreciation of property, plant and equipment | ' | ' | 129,574 | 120,355 |
Other amortization | ' | ' | 5,454 | 2,352 |
Increase in deferred income taxes | ' | ' | 48,900 | 60,580 |
Allowance for equity funds used during construction | -1,937 | -1,255 | -4,933 | -4,030 |
Change in cash overdraft | ' | ' | -1,038 | 0 |
Changes in assets and liabilities | ' | ' | ' | ' |
Decrease in fuel oil stock | ' | ' | 15,784 | 24,332 |
Increase in regulatory assets | ' | ' | -17,531 | -53,314 |
Change in prepaid and accrued income and utility revenue taxes | ' | ' | -2,044 | -19,212 |
Decrease in defined benefit pension and other postretirement benefit plans liability | ' | ' | -2,594 | -509 |
Net cash provided by operating activities | ' | ' | 173,410 | 246,726 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures | ' | ' | -236,003 | -247,392 |
Contributions in aid of construction | ' | ' | 21,740 | 23,633 |
Other | ' | ' | -39 | 426 |
Net cash used in investing activities | ' | ' | -376,992 | -363,424 |
Cash flows from financing activities | ' | ' | ' | ' |
Common stock dividends | ' | ' | -94,674 | -73,584 |
Net increase in short-term borrowings with original maturities of three months or less | ' | ' | 45,094 | 47,648 |
Other | ' | ' | -5,097 | -4,033 |
Net cash provided by financing activities | ' | ' | 176,101 | 112,078 |
Net increase (decrease) in cash and cash equivalents | ' | ' | -27,481 | -4,620 |
Hawaiian Electric Company | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net income | 39,149 | 38,087 | 109,339 | 91,749 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Equity in earnings of subsidiaries | ' | ' | -28,651 | -30,522 |
Common stock dividends received from subsidiaries | ' | ' | 19,557 | 21,379 |
Depreciation of property, plant and equipment | ' | ' | 81,903 | 75,150 |
Other amortization | ' | ' | 765 | -228 |
Increase in deferred income taxes | ' | ' | 52,274 | 31,361 |
Change in tax credits, net | ' | ' | 4,725 | 3,773 |
Allowance for equity funds used during construction | -1,668 | -914 | -4,557 | -3,144 |
Changes in assets and liabilities | ' | ' | ' | ' |
Increase in accounts receivable | ' | ' | -17,540 | 37,894 |
Decrease (increase) in accrued unbilled revenues | ' | ' | -554 | -4,381 |
Decrease in fuel oil stock | ' | ' | 11,328 | 17,945 |
Increase in materials and supplies | ' | ' | 875 | -5,392 |
Increase in regulatory assets | ' | ' | -15,159 | -37,032 |
Decrease in accounts payable | ' | ' | -70,916 | -10,435 |
Change in prepaid and accrued income and utility revenue taxes | ' | ' | -18,131 | -7,122 |
Decrease in defined benefit pension and other postretirement benefit plans liability | ' | ' | -422 | 1,744 |
Change in other assets and liabilities | ' | ' | -31,754 | -10,562 |
Net cash provided by operating activities | ' | ' | 93,082 | 172,177 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures | ' | ' | -163,333 | -164,423 |
Contributions in aid of construction | ' | ' | 12,352 | 15,699 |
Other | ' | ' | ' | 623 |
Advances from (to) affiliates | ' | ' | -4,961 | -13,600 |
Net cash used in investing activities | ' | ' | -155,942 | -161,701 |
Cash flows from financing activities | ' | ' | ' | ' |
Common stock dividends | ' | ' | -66,369 | -61,183 |
Preferred stock dividends of Hawaiian Electric and subsidiaries | ' | ' | -810 | -810 |
Net increase in short-term borrowings with original maturities of three months or less | ' | ' | 83,987 | 62,196 |
Other | ' | ' | -337 | -38 |
Net cash provided by financing activities | ' | ' | 16,471 | 165 |
Net increase (decrease) in cash and cash equivalents | ' | ' | -46,389 | 10,641 |
Cash and cash equivalents, beginning of period | ' | ' | 61,245 | 8,265 |
Cash and cash equivalents, end of period | 14,856 | 18,906 | 14,856 | 18,906 |
HELCO | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net income | 3,434 | 5,577 | 13,708 | 15,144 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Depreciation of property, plant and equipment | ' | ' | 26,926 | 25,641 |
Other amortization | ' | ' | 1,950 | 1,075 |
Increase in deferred income taxes | ' | ' | 5,146 | 7,165 |
Change in tax credits, net | ' | ' | 687 | 119 |
Allowance for equity funds used during construction | -142 | -222 | -328 | -552 |
Changes in assets and liabilities | ' | ' | ' | ' |
Increase in accounts receivable | ' | ' | -4,714 | -2,552 |
Decrease (increase) in accrued unbilled revenues | ' | ' | 626 | -1,727 |
Decrease in fuel oil stock | ' | ' | 219 | 870 |
Increase in materials and supplies | ' | ' | -987 | -1,706 |
Increase in regulatory assets | ' | ' | -2,594 | -7,165 |
Decrease in accounts payable | ' | ' | -1,807 | -3,343 |
Change in prepaid and accrued income and utility revenue taxes | ' | ' | -1,310 | -3,566 |
Decrease in defined benefit pension and other postretirement benefit plans liability | ' | ' | 0 | -191 |
Change in other assets and liabilities | ' | ' | -3,886 | -1,821 |
Net cash provided by operating activities | ' | ' | 33,636 | 27,391 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures | ' | ' | -33,212 | -35,900 |
Contributions in aid of construction | ' | ' | 6,229 | 6,160 |
Other | ' | ' | ' | -196 |
Advances from (to) affiliates | ' | ' | 1,000 | 11,050 |
Net cash used in investing activities | ' | ' | -25,983 | -18,886 |
Cash flows from financing activities | ' | ' | ' | ' |
Common stock dividends | ' | ' | -8,720 | -10,790 |
Preferred stock dividends of Hawaiian Electric and subsidiaries | ' | ' | -400 | -400 |
Net increase in short-term borrowings with original maturities of three months or less | ' | ' | 1,000 | ' |
Other | ' | ' | -50 | -2 |
Net cash provided by financing activities | ' | ' | -8,170 | -11,192 |
Net increase (decrease) in cash and cash equivalents | ' | ' | -517 | -2,687 |
Cash and cash equivalents, beginning of period | ' | ' | 1,326 | 5,441 |
Cash and cash equivalents, end of period | 809 | 2,754 | 809 | 2,754 |
Maui Electric | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net income | 6,594 | 5,446 | 15,554 | 15,990 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Depreciation of property, plant and equipment | ' | ' | 15,961 | 15,074 |
Other amortization | ' | ' | 1,947 | 1,623 |
Increase in deferred income taxes | ' | ' | 9,972 | 9,488 |
Change in tax credits, net | ' | ' | 404 | 618 |
Allowance for equity funds used during construction | -127 | -119 | -48 | -334 |
Change in cash overdraft | ' | ' | -1,038 | ' |
Changes in assets and liabilities | ' | ' | ' | ' |
Increase in accounts receivable | ' | ' | -442 | 3,999 |
Decrease (increase) in accrued unbilled revenues | ' | ' | 899 | 505 |
Decrease in fuel oil stock | ' | ' | 4,237 | 5,517 |
Increase in materials and supplies | ' | ' | -1,483 | -1,251 |
Increase in regulatory assets | ' | ' | 222 | -9,117 |
Decrease in accounts payable | ' | ' | -5,170 | -9,196 |
Change in prepaid and accrued income and utility revenue taxes | ' | ' | 1,366 | -4,728 |
Decrease in defined benefit pension and other postretirement benefit plans liability | ' | ' | -326 | -65 |
Change in other assets and liabilities | ' | ' | -3,024 | 4,924 |
Net cash provided by operating activities | ' | ' | 39,031 | 33,047 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures | ' | ' | -32,560 | -37,546 |
Contributions in aid of construction | ' | ' | 3,159 | 1,774 |
Advances from (to) affiliates | ' | ' | 0 | ' |
Net cash used in investing activities | ' | ' | -29,401 | -35,772 |
Cash flows from financing activities | ' | ' | ' | ' |
Common stock dividends | ' | ' | -10,762 | -10,513 |
Preferred stock dividends of Hawaiian Electric and subsidiaries | ' | ' | -286 | -286 |
Net increase in short-term borrowings with original maturities of three months or less | ' | ' | 3,961 | 13,600 |
Other | ' | ' | -75 | -2 |
Net cash provided by financing activities | ' | ' | -7,162 | 2,799 |
Net increase (decrease) in cash and cash equivalents | ' | ' | 2,468 | 74 |
Cash and cash equivalents, beginning of period | ' | ' | 153 | 3,349 |
Cash and cash equivalents, end of period | 2,621 | 3,423 | 2,621 | 3,423 |
Other subsidiaries | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net income | 0 | -1 | 0 | -2 |
Changes in assets and liabilities | ' | ' | ' | ' |
Net cash provided by operating activities | ' | ' | 0 | -2 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures | ' | ' | 0 | ' |
Contributions in aid of construction | ' | ' | 0 | ' |
Advances from (to) affiliates | ' | ' | 0 | ' |
Net cash used in investing activities | ' | ' | 0 | ' |
Cash flows from financing activities | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | 0 | -2 |
Cash and cash equivalents, beginning of period | ' | ' | 101 | 104 |
Cash and cash equivalents, end of period | 101 | 102 | 101 | 102 |
Consolidating adjustments | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net income | -9,800 | -10,794 | -28,576 | -30,446 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Equity in earnings of subsidiaries | ' | ' | 28,576 | 30,446 |
Common stock dividends received from subsidiaries | ' | ' | -19,482 | -21,303 |
Changes in assets and liabilities | ' | ' | ' | ' |
Increase in accounts receivable | ' | ' | 2,965 | 2,736 |
Change in other assets and liabilities | ' | ' | -2,965 | -2,736 |
Net cash provided by operating activities | ' | ' | -19,482 | -21,303 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures | ' | ' | 0 | ' |
Contributions in aid of construction | ' | ' | 0 | ' |
Advances from (to) affiliates | ' | ' | 3,961 | 2,550 |
Net cash used in investing activities | ' | ' | 3,961 | 2,550 |
Cash flows from financing activities | ' | ' | ' | ' |
Common stock dividends | ' | ' | 19,482 | 21,303 |
Net increase in short-term borrowings with original maturities of three months or less | ' | ' | -3,961 | -2,550 |
Net cash provided by financing activities | ' | ' | 15,521 | 18,753 |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | 0 |
Cash and cash equivalents, beginning of period | ' | ' | ' | 0 |
Cash and cash equivalents, end of period | ' | 0 | ' | 0 |
HECO Consolidated | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net income | 39,377 | 38,315 | 110,025 | 92,435 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Equity in earnings of subsidiaries | ' | ' | -75 | -76 |
Common stock dividends received from subsidiaries | ' | ' | 75 | 76 |
Depreciation of property, plant and equipment | ' | ' | 124,790 | 115,865 |
Other amortization | ' | ' | 4,662 | 2,470 |
Increase in deferred income taxes | ' | ' | 67,392 | 48,014 |
Change in tax credits, net | ' | ' | 5,816 | 4,510 |
Allowance for equity funds used during construction | -1,937 | -1,255 | -4,933 | -4,030 |
Change in cash overdraft | ' | ' | -1,038 | 0 |
Changes in assets and liabilities | ' | ' | ' | ' |
Increase in accounts receivable | ' | ' | -19,731 | 42,077 |
Decrease (increase) in accrued unbilled revenues | ' | ' | 971 | -5,603 |
Decrease in fuel oil stock | ' | ' | 15,784 | 24,332 |
Increase in materials and supplies | ' | ' | -1,595 | -8,349 |
Increase in regulatory assets | ' | ' | -17,531 | -53,314 |
Decrease in accounts payable | ' | ' | -77,893 | -22,974 |
Change in prepaid and accrued income and utility revenue taxes | ' | ' | -18,075 | -15,416 |
Decrease in defined benefit pension and other postretirement benefit plans liability | ' | ' | -748 | 1,488 |
Change in other assets and liabilities | ' | ' | -41,629 | -10,195 |
Net cash provided by operating activities | ' | ' | 146,267 | 211,310 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures | ' | ' | -229,105 | -237,869 |
Contributions in aid of construction | ' | ' | 21,740 | 23,633 |
Other | ' | ' | 0 | 427 |
Advances from (to) affiliates | ' | ' | ' | 0 |
Net cash used in investing activities | ' | ' | -207,365 | -213,809 |
Cash flows from financing activities | ' | ' | ' | ' |
Common stock dividends | ' | ' | -66,369 | -61,183 |
Preferred stock dividends of Hawaiian Electric and subsidiaries | ' | ' | -1,496 | -1,496 |
Net increase in short-term borrowings with original maturities of three months or less | ' | ' | 84,987 | 73,246 |
Other | ' | ' | -462 | -42 |
Net cash provided by financing activities | ' | ' | 16,660 | 10,525 |
Net increase (decrease) in cash and cash equivalents | ' | ' | -44,438 | 8,026 |
Cash and cash equivalents, beginning of period | ' | ' | 62,825 | 17,159 |
Cash and cash equivalents, end of period | $18,387 | $25,185 | $18,387 | $25,185 |
Bank_segment_Details
Bank segment (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Noninterest expense | ' | ' | ' | ' |
Income before income taxes | $74,609 | $70,748 | $209,845 | $186,510 |
Income taxes | 26,323 | 22,041 | 73,265 | 62,590 |
Net income | 48,286 | 48,707 | 136,580 | 123,920 |
American Savings Bank (ASB) | ' | ' | ' | ' |
Interest and dividend income | ' | ' | ' | ' |
Interest and fees on loans | 45,532 | 43,337 | 133,065 | 129,564 |
Interest and dividend on investment and mortgage-related securities | 2,773 | 3,025 | 8,758 | 9,723 |
Total interest and dividend income | 48,305 | 46,362 | 141,823 | 139,287 |
Interest expense | ' | ' | ' | ' |
Interest on deposit liabilities | 1,312 | 1,262 | 3,774 | 3,870 |
Interest on other borrowings | 1,438 | 1,206 | 4,263 | 3,548 |
Total interest expense | 2,750 | 2,468 | 8,037 | 7,418 |
Net interest income | 45,555 | 43,894 | 133,786 | 131,869 |
Provision for loan losses | 1,550 | 54 | 3,566 | 953 |
Net interest income after provision for loan losses | 44,005 | 43,840 | 130,220 | 130,916 |
Noninterest income | ' | ' | ' | ' |
Fees from other financial services | 5,642 | 5,728 | 15,987 | 21,367 |
Fee income on deposit liabilities | 5,109 | 4,819 | 14,175 | 13,566 |
Fee income on other financial products | 1,971 | 2,714 | 6,325 | 6,288 |
Mortgage banking income | 875 | 1,547 | 1,749 | 6,896 |
Gains on sale of securities | 0 | 0 | 2,847 | 1,226 |
Other income | 1,634 | 3,888 | 4,865 | 7,211 |
Total noninterest income | 15,231 | 18,696 | 45,948 | 56,554 |
Noninterest expense | ' | ' | ' | ' |
Compensation and employee benefits | 19,892 | 20,564 | 60,050 | 60,715 |
Occupancy | 4,517 | 4,208 | 12,959 | 12,550 |
Data processing | 2,684 | 2,168 | 8,715 | 7,982 |
Services | 2,580 | 2,424 | 7,708 | 6,855 |
Equipment | 1,672 | 1,825 | 4,926 | 5,469 |
Supplies Printing and Postage Expense | 1,415 | 907 | 4,487 | 2,806 |
Marketing Expense | 948 | 692 | 2,690 | 2,054 |
Communication | 412 | 479 | 1,363 | 1,374 |
Other expense | 5,544 | 6,461 | 15,026 | 18,400 |
Total noninterest expense | 39,664 | 39,728 | 117,924 | 118,205 |
Income before income taxes | 19,572 | 22,808 | 58,244 | 69,265 |
Income taxes | 6,312 | 7,532 | 18,769 | 23,915 |
Net income | $13,260 | $15,276 | $39,475 | $45,350 |
Bank_segment_Details_2
Bank segment (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net income | $48,286 | $48,707 | $136,580 | $123,920 |
Net unrealized gains (losses) on securities: | ' | ' | ' | ' |
Net unrealized gains (losses) on securities arising during the period, net of (taxes) benefits, of $1,049 and ($689) for the three months ended September 30, 2013 and 2012 and $7,081 and ($1,261) for the nine months ended September 30, 2013 and 2012, respectively | -1,657 | -1,589 | 3,406 | -10,724 |
Net unrealized gains (losses) on securities arising during the period, (taxes) benefits | 1,094 | 1,049 | -2,249 | 7,081 |
Less: reclassification adjustment for net realized gains, included in net income, net of taxes, of nil for the three months ended September 30, 2013 and 2012 and $488 and $53 for the nine months ended September 30, 2013 and 2012, respectively | 0 | 0 | -1,715 | -738 |
Less: reclassification adjustment for net realized gains included in net income, taxes | 0 | 0 | 1,132 | 488 |
Retirement benefit plans: | ' | ' | ' | ' |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $1,626, $3,295, $4,878 and $9,885 for the respective periods | 2,829 | 5,789 | 8,515 | 17,490 |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | -1,900 | -3,697 | -5,438 | -11,173 |
Other comprehensive income (loss), net of taxes | -1,311 | -897 | 2,756 | -9,263 |
Comprehensive income | 46,504 | 47,339 | 137,919 | 113,240 |
American Savings Bank (ASB) | ' | ' | ' | ' |
Net income | 13,260 | 15,276 | 39,475 | 45,350 |
Net unrealized gains (losses) on securities: | ' | ' | ' | ' |
Net unrealized gains (losses) on securities arising during the period, net of (taxes) benefits, of $1,049 and ($689) for the three months ended September 30, 2013 and 2012 and $7,081 and ($1,261) for the nine months ended September 30, 2013 and 2012, respectively | -1,657 | -1,589 | 3,406 | -10,724 |
Net unrealized gains (losses) on securities arising during the period, (taxes) benefits | -1,094 | -1,049 | 2,249 | -7,081 |
Less: reclassification adjustment for net realized gains, included in net income, net of taxes, of nil for the three months ended September 30, 2013 and 2012 and $488 and $53 for the nine months ended September 30, 2013 and 2012, respectively | 0 | 0 | -1,715 | -738 |
Less: reclassification adjustment for net realized gains included in net income, taxes | 0 | 0 | 1,132 | 488 |
Retirement benefit plans: | ' | ' | ' | ' |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $1,626, $3,295, $4,878 and $9,885 for the respective periods | 208 | 420 | 642 | 3,043 |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | 138 | 278 | -424 | -2,010 |
Other comprehensive income (loss), net of taxes | -1,449 | -1,169 | 2,333 | -8,419 |
Comprehensive income | $11,811 | $14,107 | $41,808 | $36,931 |
Bank_segment_Details_3
Bank segment (Details 3) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Assets | ' | ' | ' | ' |
Available-for-sale investment and mortgage-related securities | $531,603,000 | $529,007,000 | ' | ' |
Investment in stock of Federal Home Loan Bank of Seattle | 75,063,000 | 92,546,000 | ' | ' |
Loans receivable held for investment, net | 4,291,960,000 | 4,110,113,000 | ' | ' |
Loans held for sale, at lower of cost or fair value | 2,328,000 | 5,302,000 | ' | ' |
Other | 505,226,000 | 512,627,000 | ' | ' |
Goodwill | 82,190,000 | 82,190,000 | ' | ' |
Total assets | 10,670,471,000 | 10,340,044,000 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Other | 499,459,000 | 524,224,000 | ' | ' |
Total liabilities | 8,834,770,000 | 8,578,681,000 | ' | ' |
Retained earnings | 296,146,000 | 255,694,000 | ' | ' |
Accumulated other comprehensive income (loss), net of taxes: | ' | ' | ' | ' |
Accumulated other comprehensive loss, net of taxes | -13,994,000 | -16,750,000 | -35,686,000 | -26,423,000 |
Common stock equity | 1,801,408,000 | 1,727,070,000 | 1,655,465,000 | 1,593,865,000 |
Total liabilities and shareholders’ equity | 10,670,471,000 | 10,340,044,000 | ' | ' |
Other assets | ' | ' | ' | ' |
Property, plant and equipment, net of accumulated depreciation | 4,048,106,000 | 3,865,514,000 | ' | ' |
Other | 505,226,000 | 512,627,000 | ' | ' |
Other liabilities | ' | ' | ' | ' |
Total other liabilities | 499,459,000 | 524,224,000 | ' | ' |
Balance Sheet related disclosures | ' | ' | ' | ' |
Securities sold under agreements to repurchase | 153,000,000 | 145,000,000 | ' | ' |
American Savings Bank (ASB) | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and due from banks | 98,879,000 | 108,998,000 | ' | ' |
Interest-bearing deposits | 74,654,000 | 47,605,000 | ' | ' |
Available-for-sale investment and mortgage-related securities | 531,603,000 | 529,007,000 | ' | ' |
Investment in stock of Federal Home Loan Bank of Seattle | 75,063,000 | 92,546,000 | ' | ' |
Loans receivable held for investment | 4,335,421,000 | 4,150,229,000 | ' | ' |
Allowance for loan losses | -43,461,000 | -40,116,000 | ' | ' |
Loans receivable held for investment, net | 4,291,960,000 | 4,110,113,000 | ' | ' |
Loans held for sale, at lower of cost or fair value | 2,328,000 | 5,302,000 | ' | ' |
Other | 285,659,000 | 268,063,000 | ' | ' |
Goodwill | 82,190,000 | 82,190,000 | ' | ' |
Total assets | 5,442,336,000 | 5,243,824,000 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Deposit liabilities-noninterest-bearing | 1,298,726,000 | 1,214,418,000 | ' | ' |
Deposit liabilities-interest-bearing | 3,235,071,000 | 3,158,059,000 | ' | ' |
Other borrowings | 263,204,000 | 244,514,000 | ' | ' |
Other | 107,814,000 | 105,679,000 | ' | ' |
Total liabilities | 4,904,815,000 | 4,722,670,000 | ' | ' |
Common stock | 1,000 | 1,000 | ' | ' |
Additional paid in capital | 337,862,000 | 336,053,000 | ' | ' |
Retained earnings | 209,522,000 | 197,297,000 | ' | ' |
Accumulated other comprehensive income (loss), net of taxes: | ' | ' | ' | ' |
Net unrealized losses on securities | -1,972,000 | -3,663,000 | ' | ' |
Accumulated other comprehensive loss, net of tax benefits | -7,892,000 | -8,534,000 | ' | ' |
Accumulated other comprehensive loss, net of taxes | -9,864,000 | -12,197,000 | ' | ' |
Common stock equity | 537,521,000 | 521,154,000 | ' | ' |
Total liabilities and shareholders’ equity | 5,442,336,000 | 5,243,824,000 | ' | ' |
Other assets | ' | ' | ' | ' |
Bank-owned life insurance | 133,066,000 | 129,963,000 | ' | ' |
Property, plant and equipment, net of accumulated depreciation | 70,105,000 | 67,766,000 | ' | ' |
Prepaid expenses | 3,941,000 | 3,616,000 | ' | ' |
Accrued interest receivable | 13,436,000 | 13,133,000 | ' | ' |
Mortgage-servicing rights | 11,524,000 | 11,687,000 | ' | ' |
Equity Investments, Affordable Housing Program | 22,825,000 | 14,543,000 | ' | ' |
Real estate acquired in settlement of loans, net | 580,000 | 1,205,000 | ' | ' |
Other | 30,182,000 | 26,150,000 | ' | ' |
Other | 285,659,000 | 268,063,000 | ' | ' |
Other liabilities | ' | ' | ' | ' |
Accrued expenses | 24,733,000 | 19,989,000 | ' | ' |
Federal and state income taxes payable | 35,096,000 | 37,807,000 | ' | ' |
Cashier's checks | 23,754,000 | 21,110,000 | ' | ' |
Advance payments by borrowers | 5,013,000 | 9,647,000 | ' | ' |
Other | 19,218,000 | 17,126,000 | ' | ' |
Total other liabilities | 107,814,000 | 105,679,000 | ' | ' |
Balance Sheet related disclosures | ' | ' | ' | ' |
Securities sold under agreements to repurchase | 153,000,000 | 145,000,000 | ' | ' |
Advances from Federal Home Loan Bank | $110,000,000 | $100,000,000 | ' | ' |
Bank_segment_Details_4
Bank segment (Details 4) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Available-for-sale securities | ' | ' |
Total available-for-sale securities, Amortized cost | $534,876 | $535,090 |
Gross unrealized gains | 5,958 | 6,911 |
Gross unrealized losses | -9,231 | -12,994 |
Available-for-sale securities | 531,603 | 529,007 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ' | ' |
Fair value, less than 12 months | 119,030 | 313,820 |
Gross unrealized losses, less than 12 months | -1,047 | -11,353 |
Fair value, 12 months or longer | 177,712 | 19,655 |
Gross unrealized losses, 12 months or longer | -8,184 | -1,641 |
Federal agency obligations | ' | ' |
Available-for-sale securities | ' | ' |
Total available-for-sale securities, Amortized cost | 107,072 | 83,193 |
Gross unrealized gains | 631 | 174 |
Gross unrealized losses | -1,407 | -2,394 |
Available-for-sale securities | 106,296 | 80,973 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ' | ' |
Fair value, less than 12 months | 29,628 | 70,799 |
Gross unrealized losses, less than 12 months | -137 | -2,394 |
Fair value, 12 months or longer | 29,168 | 0 |
Gross unrealized losses, 12 months or longer | -1,270 | 0 |
Mortgage-related securities - FNMA, FHLMC and GNMA | ' | ' |
Available-for-sale securities | ' | ' |
Total available-for-sale securities, Amortized cost | 427,804 | 374,993 |
Gross unrealized gains | 5,327 | 4,911 |
Gross unrealized losses | -7,824 | -10,460 |
Available-for-sale securities | 425,307 | 369,444 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ' | ' |
Fair value, less than 12 months | 89,402 | 228,543 |
Gross unrealized losses, less than 12 months | -910 | -8,819 |
Fair value, 12 months or longer | 148,544 | 19,655 |
Gross unrealized losses, 12 months or longer | -6,914 | -1,641 |
Municipal bonds | ' | ' |
Available-for-sale securities | ' | ' |
Total available-for-sale securities, Amortized cost | 0 | 76,904 |
Gross unrealized gains | 0 | 1,826 |
Gross unrealized losses | 0 | -140 |
Available-for-sale securities | 0 | 78,590 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ' | ' |
Fair value, less than 12 months | 0 | 14,478 |
Gross unrealized losses, less than 12 months | 0 | -140 |
Fair value, 12 months or longer | 0 | 0 |
Gross unrealized losses, 12 months or longer | $0 | $0 |
Bank_segment_Details_5
Bank segment (Details 5) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost | ' | ' |
Due in one year or less | $0 | ' |
Due after one year through five years | 44,498 | ' |
Due after five years through ten years | 37,332 | ' |
Due after ten years | 25,242 | ' |
Total amortized cost | 107,072 | ' |
Mortgage-related securities-FNMA, FHLMC and GNMA - amortized cost | 427,804 | ' |
Total available-for-sale securities, Amortized cost | 534,876 | 535,090 |
Fair value | ' | ' |
Due in one year or less | 0 | ' |
Due after one year through five years | 44,419 | ' |
Due after five years through ten years | 37,641 | ' |
Due after ten years | 24,236 | ' |
Total fair value | 106,296 | ' |
Mortgage-related securities-FNMA, FHLMC and GNMA - fair value | 425,307 | ' |
Available-for-sale securities | $531,603 | $529,007 |
Bank_segment_Details_6
Bank segment (Details 6) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | $42,372 | $41,004 | $40,116 | $41,985 | ' |
Charge-offs | -2,184 | -865 | -4,125 | -5,648 | ' |
Recoveries | 1,723 | 859 | 3,904 | 3,762 | ' |
Provision | 1,550 | 54 | 3,566 | 953 | ' |
Valuation allowance, balance at the end of the period | 43,461 | 41,052 | 43,461 | 41,052 | ' |
Valuation allowance, balance at the end of the period | 43,461 | 41,052 | 43,461 | 41,052 | ' |
Ending balance: individually evaluated for impairment | 2,915 | 6,096 | 2,915 | 6,096 | ' |
Ending balance: collectively evaluated for impairment | 40,546 | 34,956 | 40,546 | 34,956 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 4,342,389 | 4,055,389 | 4,342,389 | 4,055,389 | 4,158,953 |
Ending balance: individually evaluated for impairment | 45,107 | 63,110 | 45,107 | 63,110 | ' |
Ending balance: collectively evaluated for impairment | 4,297,282 | 3,992,279 | 4,297,282 | 3,992,279 | ' |
Residential 1-4 family | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 5,667 | 6,357 | 5,534 | 6,068 | ' |
Charge-offs | -632 | -106 | -992 | -1,162 | ' |
Recoveries | 160 | 157 | 1,056 | 1,382 | ' |
Provision | 670 | -604 | 267 | -484 | ' |
Valuation allowance, balance at the end of the period | 5,865 | 5,804 | 5,865 | 5,804 | ' |
Valuation allowance, balance at the end of the period | 5,865 | 5,804 | 5,865 | 5,804 | ' |
Ending balance: individually evaluated for impairment | 917 | 944 | 917 | 944 | ' |
Ending balance: collectively evaluated for impairment | 4,948 | 4,860 | 4,948 | 4,860 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 2,030,337 | 2,015,082 | 2,030,337 | 2,015,082 | 2,006,007 |
Ending balance: individually evaluated for impairment | 20,015 | 22,123 | 20,015 | 22,123 | ' |
Ending balance: collectively evaluated for impairment | 2,010,322 | 1,992,959 | 2,010,322 | 1,992,959 | ' |
Commercial real estate | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 7,230 | 4,117 | 5,059 | 2,965 | ' |
Provision | 3 | 204 | 2,174 | 1,356 | ' |
Valuation allowance, balance at the end of the period | 7,233 | 4,321 | 7,233 | 4,321 | ' |
Valuation allowance, balance at the end of the period | 7,233 | 4,321 | 7,233 | 4,321 | ' |
Ending balance: individually evaluated for impairment | 4 | 888 | 4 | 888 | ' |
Ending balance: collectively evaluated for impairment | 7,229 | 3,433 | 7,229 | 3,433 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 502,356 | 405,037 | 502,356 | 405,037 | 440,443 |
Ending balance: individually evaluated for impairment | 754 | 4,484 | 754 | 4,484 | ' |
Ending balance: collectively evaluated for impairment | 501,602 | 400,553 | 501,602 | 400,553 | ' |
Home equity line of credit | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 7,081 | 5,009 | 5,229 | 4,493 | ' |
Charge-offs | -46 | -44 | -182 | -782 | ' |
Recoveries | 299 | 78 | 624 | 334 | ' |
Provision | -119 | 12 | 1,544 | 1,010 | ' |
Valuation allowance, balance at the end of the period | 7,215 | 5,055 | 7,215 | 5,055 | ' |
Valuation allowance, balance at the end of the period | 7,215 | 5,055 | 7,215 | 5,055 | ' |
Ending balance: individually evaluated for impairment | 8 | 0 | 8 | 0 | ' |
Ending balance: collectively evaluated for impairment | 7,207 | 5,055 | 7,207 | 5,055 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 808,991 | 703,210 | 808,991 | 703,210 | 739,331 |
Ending balance: individually evaluated for impairment | 392 | 960 | 392 | 960 | ' |
Ending balance: collectively evaluated for impairment | 808,599 | 702,250 | 808,599 | 702,250 | ' |
Residential land | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 1,837 | 2,187 | 1,817 | 4,275 | ' |
Charge-offs | -28 | -3 | -81 | -238 | ' |
Recoveries | 90 | 282 | 253 | 782 | ' |
Provision | -92 | -361 | -182 | -2,714 | ' |
Valuation allowance, balance at the end of the period | 1,807 | 2,105 | 1,807 | 2,105 | ' |
Valuation allowance, balance at the end of the period | 1,807 | 2,105 | 1,807 | 2,105 | ' |
Ending balance: individually evaluated for impairment | 1,171 | 1,585 | 1,171 | 1,585 | ' |
Ending balance: collectively evaluated for impairment | 636 | 520 | 636 | 520 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 16,935 | 18,400 | 16,935 | 18,400 | 16,176 |
Ending balance: individually evaluated for impairment | 8,872 | 12,747 | 8,872 | 12,747 | ' |
Ending balance: collectively evaluated for impairment | 8,063 | 5,653 | 8,063 | 5,653 | ' |
Commercial construction | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 3,390 | 2,305 | 2,397 | 2,023 | ' |
Provision | 1,724 | 44 | 2,717 | 326 | ' |
Valuation allowance, balance at the end of the period | 5,114 | 2,349 | 5,114 | 2,349 | ' |
Valuation allowance, balance at the end of the period | 5,114 | 2,349 | 5,114 | 2,349 | ' |
Ending balance: collectively evaluated for impairment | 5,114 | 2,349 | 5,114 | 2,349 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 87,461 | 51,067 | 87,461 | 51,067 | 52,112 |
Ending balance: collectively evaluated for impairment | 87,461 | 51,067 | 87,461 | 51,067 | ' |
Residential construction | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 26 | 14 | 19 | 9 | ' |
Provision | 3 | 2 | 10 | 7 | ' |
Valuation allowance, balance at the end of the period | 29 | 16 | 29 | 16 | ' |
Valuation allowance, balance at the end of the period | 29 | 16 | 29 | 16 | ' |
Ending balance: collectively evaluated for impairment | 29 | 16 | 29 | 16 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 18,699 | 10,460 | 18,699 | 10,460 | 12,774 |
Ending balance: collectively evaluated for impairment | 18,699 | 10,460 | 18,699 | 10,460 | ' |
Commercial loans | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 15,144 | 16,307 | 15,803 | 15,931 | ' |
Charge-offs | -886 | -305 | -1,256 | -1,655 | ' |
Recoveries | 952 | 166 | 1,277 | 778 | ' |
Provision | -1,130 | -361 | -1,744 | 753 | ' |
Valuation allowance, balance at the end of the period | 14,080 | 15,807 | 14,080 | 15,807 | ' |
Valuation allowance, balance at the end of the period | 14,080 | 15,807 | 14,080 | 15,807 | ' |
Ending balance: individually evaluated for impairment | 810 | 2,679 | 810 | 2,679 | ' |
Ending balance: collectively evaluated for impairment | 13,270 | 13,128 | 13,270 | 13,128 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 770,079 | 749,733 | 770,079 | 749,733 | 783,388 |
Ending balance: individually evaluated for impairment | 15,058 | 22,777 | 15,058 | 22,777 | ' |
Ending balance: collectively evaluated for impairment | 755,021 | 726,956 | 755,021 | 726,956 | ' |
Consumer loans | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 1,997 | 2,399 | 2,367 | 4,019 | ' |
Charge-offs | -592 | -407 | -1,614 | -1,811 | ' |
Recoveries | 222 | 176 | 694 | 486 | ' |
Provision | 491 | 42 | 671 | -484 | ' |
Valuation allowance, balance at the end of the period | 2,118 | 2,210 | 2,118 | 2,210 | ' |
Valuation allowance, balance at the end of the period | 2,118 | 2,210 | 2,118 | 2,210 | ' |
Ending balance: individually evaluated for impairment | 5 | ' | 5 | ' | ' |
Ending balance: collectively evaluated for impairment | 2,113 | 2,210 | 2,113 | 2,210 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 107,531 | 102,400 | 107,531 | 102,400 | 108,722 |
Ending balance: individually evaluated for impairment | 16 | 19 | 16 | 19 | ' |
Ending balance: collectively evaluated for impairment | 107,515 | 102,381 | 107,515 | 102,381 | ' |
Unallocated | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 0 | 2,309 | 1,891 | 2,202 | ' |
Provision | 0 | 1,076 | -1,891 | 1,183 | ' |
Valuation allowance, balance at the end of the period | 0 | 3,385 | 0 | 3,385 | ' |
Valuation allowance, balance at the end of the period | 0 | 3,385 | 0 | 3,385 | ' |
Ending balance: collectively evaluated for impairment | $0 | $3,385 | $0 | $3,385 | ' |
Bank_segment_Details_7
Bank segment (Details 7) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Credit risk profile by internally assigned grade for loans | ' | ' |
Commercial real estate | $502,356 | $440,443 |
Commercial construction | 87,461 | 52,112 |
Commercial | 770,079 | 783,388 |
Pass | ' | ' |
Credit risk profile by internally assigned grade for loans | ' | ' |
Commercial real estate | 444,723 | 375,217 |
Commercial construction | 70,335 | 52,112 |
Commercial | 715,284 | 703,053 |
Special mention | ' | ' |
Credit risk profile by internally assigned grade for loans | ' | ' |
Commercial real estate | 18,199 | 33,436 |
Commercial construction | 0 | 0 |
Commercial | 8,500 | 17,634 |
Substandard | ' | ' |
Credit risk profile by internally assigned grade for loans | ' | ' |
Commercial real estate | 39,434 | 28,020 |
Commercial construction | 17,126 | ' |
Commercial | 45,101 | 59,663 |
Doubtful | ' | ' |
Credit risk profile by internally assigned grade for loans | ' | ' |
Commercial real estate | 0 | 3,770 |
Commercial | $1,194 | $3,038 |
Bank_segment_Details_8
Bank segment (Details 8) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Credit risk profile based on payment activity for loans | ' | ' | ' |
30-59 days past due | $8,307 | $5,781 | ' |
60-89 days past due | 1,486 | 1,752 | ' |
Greater than 90 days | 16,342 | 26,227 | ' |
Total past due | 26,135 | 33,760 | ' |
Current | 4,316,254 | 4,125,193 | ' |
Total financing receivables | 4,342,389 | 4,158,953 | 4,055,389 |
Recorded Investment greater than 90 days and accruing | 525 | 0 | ' |
Residential 1-4 family | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
30-59 days past due | 6,449 | 2,728 | ' |
60-89 days past due | 909 | 622 | ' |
Greater than 90 days | 14,427 | 15,411 | ' |
Total past due | 21,785 | 18,761 | ' |
Current | 2,008,552 | 1,987,246 | ' |
Total financing receivables | 2,030,337 | 2,006,007 | 2,015,082 |
Commercial real estate | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
30-59 days past due | 0 | 0 | ' |
Greater than 90 days | 0 | 3,770 | ' |
Total past due | 0 | 3,770 | ' |
Current | 502,356 | 436,673 | ' |
Total financing receivables | 502,356 | 440,443 | 405,037 |
Home equity line of credit | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
30-59 days past due | 578 | 765 | ' |
60-89 days past due | 166 | 312 | ' |
Greater than 90 days | 143 | 960 | ' |
Total past due | 887 | 2,037 | ' |
Current | 808,104 | 737,294 | ' |
Total financing receivables | 808,991 | 739,331 | 703,210 |
Residential land | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
30-59 days past due | 260 | 184 | ' |
60-89 days past due | 0 | 48 | ' |
Greater than 90 days | 525 | 2,756 | ' |
Total past due | 785 | 2,988 | ' |
Current | 16,150 | 13,188 | ' |
Total financing receivables | 16,935 | 16,176 | 18,400 |
Recorded Investment greater than 90 days and accruing | 525 | ' | ' |
Commercial construction | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
Current | 87,461 | 52,112 | ' |
Total financing receivables | 87,461 | 52,112 | 51,067 |
Residential construction | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
Current | 18,699 | 12,774 | ' |
Total financing receivables | 18,699 | 12,774 | 10,460 |
Commercial loans | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
30-59 days past due | 239 | 1,668 | ' |
60-89 days past due | 34 | 612 | ' |
Greater than 90 days | 954 | 3,026 | ' |
Total past due | 1,227 | 5,306 | ' |
Current | 768,852 | 778,082 | ' |
Total financing receivables | 770,079 | 783,388 | 749,733 |
Recorded Investment greater than 90 days and accruing | ' | 0 | ' |
Consumer loans | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
30-59 days past due | 781 | 436 | ' |
60-89 days past due | 377 | 158 | ' |
Greater than 90 days | 293 | 304 | ' |
Total past due | 1,451 | 898 | ' |
Current | 106,080 | 107,824 | ' |
Total financing receivables | 107,531 | 108,722 | 102,400 |
Recorded Investment greater than 90 days and accruing | ' | $0 | ' |
Bank_segment_Details_9
Bank segment (Details 9) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Credit risk profile based on nonaccrual loans | ' | ' |
Nonaccrual loans | $36,914 | $48,521 |
Accruing loans 90 days or more past due | 525 | 0 |
Residential 1-4 family | ' | ' |
Credit risk profile based on nonaccrual loans | ' | ' |
Nonaccrual loans | 20,499 | 19,679 |
Commercial real estate | ' | ' |
Credit risk profile based on nonaccrual loans | ' | ' |
Nonaccrual loans | 596 | 4,439 |
Home equity line of credit | ' | ' |
Credit risk profile based on nonaccrual loans | ' | ' |
Nonaccrual loans | 1,105 | 2,060 |
Residential land | ' | ' |
Credit risk profile based on nonaccrual loans | ' | ' |
Nonaccrual loans | 2,798 | 3,161 |
Accruing loans 90 days or more past due | 525 | ' |
Commercial loans | ' | ' |
Credit risk profile based on nonaccrual loans | ' | ' |
Nonaccrual loans | 11,414 | 18,781 |
Accruing loans 90 days or more past due | ' | 0 |
Consumer loans | ' | ' |
Credit risk profile based on nonaccrual loans | ' | ' |
Nonaccrual loans | 502 | 401 |
Accruing loans 90 days or more past due | ' | $0 |
Bank_segment_Details_10
Bank segment (Details 10) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Recorded investment: | ' | ' | ' |
With no related allowance recorded | $20,880 | $20,880 | $16,487 |
With an allowance recorded | 24,227 | 24,227 | 36,031 |
Recorded investment | 45,107 | 45,107 | 52,518 |
Unpaid principal balance: | ' | ' | ' |
With no related allowance recorded | 28,875 | 28,875 | 21,717 |
With an allowance recorded | 24,811 | 24,811 | 39,185 |
Unpaid principal balance | 53,686 | 53,686 | 60,902 |
Related Allowance | 2,915 | 2,915 | 5,338 |
Average recorded investment: | ' | ' | ' |
With no related allowance recorded | 17,754 | 16,571 | 24,631 |
With an allowance recorded | 30,420 | 33,099 | 34,679 |
Average recorded investment | 48,174 | 49,670 | 59,310 |
Interest income recognized: | ' | ' | ' |
With no related allowance recorded | 76 | 353 | 882 |
With an allowance recorded | 856 | 1,365 | 1,072 |
Interest income recognized | 932 | 1,718 | 1,954 |
Residential 1-4 family | ' | ' | ' |
Recorded investment: | ' | ' | ' |
With no related allowance recorded | 8,718 | 8,718 | 9,708 |
With an allowance recorded | 11,297 | 11,297 | 6,216 |
Recorded investment | 20,015 | 20,015 | 15,924 |
Unpaid principal balance: | ' | ' | ' |
With no related allowance recorded | 10,398 | 10,398 | 12,144 |
With an allowance recorded | 11,338 | 11,338 | 6,236 |
Unpaid principal balance | 21,736 | 21,736 | 18,380 |
Related Allowance | 917 | 917 | 642 |
Average recorded investment: | ' | ' | ' |
With no related allowance recorded | 8,519 | 9,077 | 11,674 |
With an allowance recorded | 10,232 | 8,019 | 6,455 |
Average recorded investment | 18,751 | 17,096 | 18,129 |
Interest income recognized: | ' | ' | ' |
With no related allowance recorded | 30 | 189 | 386 |
With an allowance recorded | 112 | 303 | 372 |
Interest income recognized | 142 | 492 | 758 |
Commercial real estate | ' | ' | ' |
Recorded investment: | ' | ' | ' |
With no related allowance recorded | 596 | 596 | 0 |
With an allowance recorded | 158 | 158 | 4,604 |
Recorded investment | 754 | 754 | 4,604 |
Unpaid principal balance: | ' | ' | ' |
With no related allowance recorded | 642 | 642 | 0 |
With an allowance recorded | 158 | 158 | 4,686 |
Unpaid principal balance | 800 | 800 | 4,686 |
Related Allowance | 4 | 4 | 1,118 |
Average recorded investment: | ' | ' | ' |
With no related allowance recorded | 199 | 66 | 802 |
With an allowance recorded | 3,045 | 4,049 | 5,745 |
Average recorded investment | 3,244 | 4,115 | 6,547 |
Interest income recognized: | ' | ' | ' |
With no related allowance recorded | ' | ' | 0 |
With an allowance recorded | 455 | 458 | 152 |
Interest income recognized | 455 | 458 | 152 |
Home equity line of credit | ' | ' | ' |
Recorded investment: | ' | ' | ' |
With no related allowance recorded | 208 | 208 | 672 |
With an allowance recorded | 184 | 184 | ' |
Recorded investment | 392 | 392 | 672 |
Unpaid principal balance: | ' | ' | ' |
With no related allowance recorded | 332 | 332 | 1,227 |
With an allowance recorded | 212 | 212 | ' |
Unpaid principal balance | 544 | 544 | 1,227 |
Related Allowance | 8 | 8 | ' |
Average recorded investment: | ' | ' | ' |
With no related allowance recorded | 274 | 450 | 623 |
With an allowance recorded | 198 | 89 | 0 |
Average recorded investment | 472 | 539 | 623 |
Interest income recognized: | ' | ' | ' |
With no related allowance recorded | 0 | 4 | 2 |
With an allowance recorded | 1 | 2 | ' |
Interest income recognized | 1 | 6 | 2 |
Residential land | ' | ' | ' |
Recorded investment: | ' | ' | ' |
With no related allowance recorded | 2,500 | 2,500 | 2,622 |
With an allowance recorded | 6,372 | 6,372 | 7,452 |
Recorded investment | 8,872 | 8,872 | 10,074 |
Unpaid principal balance: | ' | ' | ' |
With no related allowance recorded | 3,356 | 3,356 | 3,612 |
With an allowance recorded | 6,450 | 6,450 | 7,623 |
Unpaid principal balance | 9,806 | 9,806 | 11,235 |
Related Allowance | 1,171 | 1,171 | 1,332 |
Average recorded investment: | ' | ' | ' |
With no related allowance recorded | 2,610 | 2,823 | 6,675 |
With an allowance recorded | 6,379 | 6,685 | 6,844 |
Average recorded investment | 8,989 | 9,508 | 13,519 |
Interest income recognized: | ' | ' | ' |
With no related allowance recorded | 40 | 138 | 482 |
With an allowance recorded | 81 | 301 | 409 |
Interest income recognized | 121 | 439 | 891 |
Commercial loans | ' | ' | ' |
Recorded investment: | ' | ' | ' |
With no related allowance recorded | 8,858 | 8,858 | 3,466 |
With an allowance recorded | 6,200 | 6,200 | 17,759 |
Recorded investment | 15,058 | 15,058 | 21,225 |
Unpaid principal balance: | ' | ' | ' |
With no related allowance recorded | 14,147 | 14,147 | 4,715 |
With an allowance recorded | 6,637 | 6,637 | 20,640 |
Unpaid principal balance | 20,784 | 20,784 | 25,355 |
Related Allowance | 810 | 810 | 2,246 |
Average recorded investment: | ' | ' | ' |
With no related allowance recorded | 6,152 | 4,145 | 4,837 |
With an allowance recorded | 10,549 | 14,249 | 15,635 |
Average recorded investment | 16,701 | 18,394 | 20,472 |
Interest income recognized: | ' | ' | ' |
With no related allowance recorded | 6 | 22 | 12 |
With an allowance recorded | 207 | 301 | 139 |
Interest income recognized | 213 | 323 | 151 |
Consumer loans | ' | ' | ' |
Recorded investment: | ' | ' | ' |
With no related allowance recorded | 0 | 0 | 19 |
With an allowance recorded | 16 | 16 | ' |
Recorded investment | 16 | 16 | 19 |
Unpaid principal balance: | ' | ' | ' |
With no related allowance recorded | 0 | 0 | 19 |
With an allowance recorded | 16 | 16 | ' |
Unpaid principal balance | 16 | 16 | 19 |
Related Allowance | 5 | 5 | ' |
Average recorded investment: | ' | ' | ' |
With no related allowance recorded | 0 | 10 | 20 |
With an allowance recorded | 17 | 8 | ' |
Average recorded investment | 17 | 18 | 20 |
Interest income recognized: | ' | ' | ' |
With an allowance recorded | $0 | $0 | ' |
Bank_segment_Details_11
Bank segment (Details 11) (Land loans) | 9 Months Ended |
Sep. 30, 2014 | |
Troubled debt restructurings | ' |
Period of interest-only monthly payment term loan | '3 years |
Maximum | ' |
Troubled debt restructurings | ' |
Extension of maturity date | '5 years |
Bank_segment_Details_12
Bank segment (Details 12) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
contract | contract | contract | contract | |
Financing Receivable Troubled Debt Restructurings that Subsequently Defaulted [Member] | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | 0 | 4 | 1 | 4 |
Recorded investment | $0 | $736 | $390 | $736 |
Troubled debt restructurings real estate loans | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | 11 | 26 | 44 | 58 |
Pre-modification outstanding recorded investment | 4,747 | 7,883 | 13,137 | 16,866 |
Post-modification outstanding recorded investment | 4,772 | 7,893 | 13,194 | 16,691 |
Residential 1-4 family | Financing Receivable Troubled Debt Restructurings that Subsequently Defaulted [Member] | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | 0 | ' | 1 | ' |
Recorded investment | 0 | ' | 390 | ' |
Residential 1-4 family | Troubled debt restructurings real estate loans | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | 6 | 14 | 18 | 32 |
Pre-modification outstanding recorded investment | 1,800 | 2,864 | 4,915 | 8,631 |
Post-modification outstanding recorded investment | 1,825 | 2,874 | 4,972 | 8,712 |
Home equity line of credit | Financing Receivable Troubled Debt Restructurings that Subsequently Defaulted [Member] | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | ' | 1 | ' | 1 |
Recorded investment | ' | 67 | ' | 67 |
Home equity line of credit | Troubled debt restructurings real estate loans | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | 1 | 0 | 1 | 4 |
Pre-modification outstanding recorded investment | 91 | 0 | 91 | 462 |
Post-modification outstanding recorded investment | 91 | 0 | 91 | 215 |
Residential land | Troubled debt restructurings real estate loans | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | 2 | 9 | 18 | 16 |
Pre-modification outstanding recorded investment | 256 | 2,943 | 4,304 | 4,983 |
Post-modification outstanding recorded investment | 256 | 2,943 | 4,304 | 4,974 |
Commercial loans | Financing Receivable Troubled Debt Restructurings that Subsequently Defaulted [Member] | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | ' | 3 | ' | 3 |
Recorded investment | ' | 669 | ' | 669 |
Commercial loans | Troubled debt restructurings real estate loans | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | 2 | 3 | 7 | 6 |
Pre-modification outstanding recorded investment | 2,600 | 2,076 | 3,827 | 2,790 |
Post-modification outstanding recorded investment | $2,600 | $2,076 | $3,827 | $2,790 |
Bank_segment_Details_13
Bank segment (Details 13) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Repurchase agreements | ' | ' |
Gross amount of recognized liabilities | $153 | $145 |
Net amount of liabilities presented in the Balance Sheet | 153 | 145 |
Gross amount not offset in the Balance Sheet | ' | ' |
Net amount of liabilities presented in the Balance Sheet | 153 | 145 |
Financial instruments | 153 | 145 |
American Savings Bank (ASB) | ' | ' |
Repurchase agreements | ' | ' |
Net amount of liabilities presented in the Balance Sheet | 50 | 51 |
Gross amount not offset in the Balance Sheet | ' | ' |
Net amount of liabilities presented in the Balance Sheet | 50 | 51 |
Financial instruments | 50 | 51 |
Government [Member] | ' | ' |
Repurchase agreements | ' | ' |
Net amount of liabilities presented in the Balance Sheet | 15 | ' |
Gross amount not offset in the Balance Sheet | ' | ' |
Net amount of liabilities presented in the Balance Sheet | 15 | ' |
Financial instruments | 15 | ' |
Commercial account holders | ' | ' |
Repurchase agreements | ' | ' |
Net amount of liabilities presented in the Balance Sheet | 88 | 94 |
Gross amount not offset in the Balance Sheet | ' | ' |
Net amount of liabilities presented in the Balance Sheet | 88 | 94 |
Financial instruments | $88 | $94 |
Bank_segment_Details_14
Bank segment (Details 14) (American Savings Bank (ASB), Mortgage Servicing Rights (MSR), USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
American Savings Bank (ASB) | Mortgage Servicing Rights (MSR) | ' | ' |
Servicing Asset at Amortized Cost [Line Items] | ' | ' |
Gross carrying amount | $26,685 | $25,198 |
Accumulated amortization | -15,003 | -13,265 |
Valuation allowance | -158 | -127 |
Net carrying amount | 11,524 | 11,806 |
Valuation Allowance [Roll Forward] | ' | ' |
Valuation allowance, beginning balance | 251 | 498 |
Provision (recovery) | -36 | -215 |
Other-than-temporary impairment | -57 | -156 |
Valuation allowance, ending balance | 158 | 127 |
Unpaid principal balance | $1,380,299 | $1,329,815 |
Weighted average note-rate | 4.08% | 4.06% |
Weighted average discount rate | 9.60% | 10.10% |
Weighted average prepayment speed | 8.10% | 6.60% |
Bank_segment_Details_15
Bank segment (Details 15) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Not designated as a hedging instrument | Not designated as a hedging instrument | Forward sale contracts | Forward sale contracts | Forward sale contracts | Forward sale contracts | Forward sale contracts | Forward sale contracts | Forward sale contracts | Forward sale contracts | Interest rate lock commitments | Interest rate lock commitments | Interest rate lock commitments | Interest rate lock commitments | Interest rate lock commitments | Interest rate lock commitments | Interest rate lock commitments | Interest rate lock commitments | |||||
Not designated as a hedging instrument | Not designated as a hedging instrument | Not designated as a hedging instrument | Not designated as a hedging instrument | Not designated as a hedging instrument | Not designated as a hedging instrument | Not designated as a hedging instrument | Not designated as a hedging instrument | Not designated as a hedging instrument | Not designated as a hedging instrument | Not designated as a hedging instrument | Not designated as a hedging instrument | |||||||||||
Mortgage banking income | Mortgage banking income | Mortgage banking income | Mortgage banking income | Mortgage banking income | Mortgage banking income | Mortgage banking income | Mortgage banking income | |||||||||||||||
Derivative instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount | ' | ' | ' | ' | ' | ' | $12,707 | $26,018 | ' | ' | ' | ' | ' | ' | $14,511 | $25,070 | ' | ' | ' | ' | ' | ' |
Fair value | ' | ' | ' | ' | ' | ' | -25 | 139 | ' | ' | ' | ' | ' | ' | 215 | 464 | ' | ' | ' | ' | ' | ' |
Asset derivative | ' | ' | ' | ' | 217 | 629 | ' | ' | 1 | 141 | ' | ' | ' | ' | ' | ' | 216 | 488 | ' | ' | ' | ' |
Liability derivative | ' | ' | ' | ' | 27 | 26 | ' | ' | 26 | 2 | ' | ' | ' | ' | ' | ' | 1 | 24 | ' | ' | ' | ' |
Net gains (losses) recognized in the Statement of Income | $190 | ($355) | ($413) | $283 | ' | ' | ' | ' | ' | ' | ($25) | ($1,173) | ($164) | ($273) | ' | ' | ' | ' | $215 | $818 | ($249) | $556 |
Retirement_benefits_Details
Retirement benefits (Details) (USD $) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Pension benefits | Pension benefits | Pension benefits | Pension benefits | Other benefits | Other benefits | Other benefits | Other benefits | American Savings Bank (ASB) | Hawaiian Electric Industries, Inc. | Hawaiian Electric Industries, Inc. | HECO Consolidated | HECO Consolidated | HECO Consolidated | HECO Consolidated | HECO Consolidated | HECO Consolidated | HECO Consolidated | HECO Consolidated | HECO Consolidated | HECO Consolidated | HECO Consolidated | ||||
Other benefits | Other benefits | Other benefits | Pension benefits | Pension benefits | Pension benefits | Pension benefits | Other benefits | Other benefits | Other benefits | Other benefits | |||||||||||||||
Defined benefit plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions made to defined benefit plans | ' | ' | ' | ' | ' | $45,000,000 | $62,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $44,000,000 | $61,000,000 | ' | ' | ' | ' |
Contributions expected to be paid in current year | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000,000 | 83,000,000 | 0 | 1,000,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 59,000,000 | 81,000,000 |
Expected payments in 2014 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for benefits | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Service cost | ' | ' | ' | 12,306,000 | 14,097,000 | 36,958,000 | 42,307,000 | 870,000 | 1,077,000 | 2,619,000 | 3,229,000 | ' | ' | ' | ' | ' | ' | 11,900,000 | 13,620,000 | 35,698,000 | 40,861,000 | 848,000 | 1,041,000 | 2,544,000 | 3,122,000 |
Interest cost | ' | ' | ' | 18,044,000 | 16,187,000 | 54,158,000 | 48,600,000 | 2,137,000 | 1,891,000 | 6,414,000 | 5,677,000 | ' | ' | ' | ' | ' | ' | 16,495,000 | 14,780,000 | 49,484,000 | 44,339,000 | 2,058,000 | 1,822,000 | 6,175,000 | 5,466,000 |
Expected return on plan assets | ' | ' | ' | -20,337,000 | -18,134,000 | -61,018,000 | -54,401,000 | -2,724,000 | -2,531,000 | -8,180,000 | -7,614,000 | ' | ' | ' | ' | ' | ' | -18,167,000 | -16,138,000 | -54,496,000 | -48,413,000 | -2,684,000 | -2,502,000 | -8,054,000 | -7,502,000 |
Amortization of prior service gain | ' | ' | ' | 22,000 | -24,000 | 66,000 | -73,000 | -448,000 | -448,000 | -1,345,000 | -1,345,000 | ' | ' | ' | ' | ' | ' | 15,000 | -116,000 | 46,000 | -348,000 | -451,000 | -451,000 | -1,353,000 | -1,353,000 |
Amortization of net actuarial loss | ' | ' | ' | 5,064,000 | 9,560,000 | 15,240,000 | 28,878,000 | -2,000 | 398,000 | -8,000 | 1,203,000 | ' | ' | ' | ' | ' | ' | 4,616,000 | 8,649,000 | 13,845,000 | 25,948,000 | 0 | 387,000 | 0 | 1,159,000 |
Net periodic benefit cost | ' | ' | ' | 15,099,000 | 21,686,000 | 45,404,000 | 65,311,000 | -167,000 | 387,000 | -500,000 | 1,150,000 | ' | ' | ' | ' | ' | ' | 14,859,000 | 20,795,000 | 44,577,000 | 62,387,000 | -229,000 | 297,000 | -688,000 | 892,000 |
Impact of PUC D&Os | ' | ' | ' | -3,331,000 | -9,257,000 | -9,993,000 | -28,847,000 | 494,000 | -332,000 | 1,482,000 | -1,018,000 | ' | ' | ' | ' | ' | ' | -3,331,000 | -9,257,000 | -9,993,000 | -28,847,000 | 494,000 | -332,000 | 1,482,000 | -1,018,000 |
Net periodic benefit cost (adjusted for impact of PUC D&Os) | ' | ' | ' | 11,768,000 | 12,429,000 | 35,411,000 | 36,464,000 | 327,000 | 55,000 | 982,000 | 132,000 | ' | ' | ' | ' | ' | ' | 11,528,000 | 11,538,000 | 34,584,000 | 33,540,000 | 265,000 | -35,000 | 794,000 | -126,000 |
Retirement benefits expense | 24,000,000 | 24,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,000,000 | 21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of years for which regulatory asset/liability for each utility will be amortized, beginning with respective utility's next rate case | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined contribution plan, expenses recognized | 3,400,000 | 3,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash contributions by the employer to defined contribution plan | $4,200,000 | $3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $700,000 | $400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retirement_benefits_Effects_of
Retirement benefits - Effects of Restatement (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Retirement benefits expense | ' | ' | $24,000,000 | $24,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' | ' | ' |
Retirement benefits expense | ' | ' | 23,000,000 | 21,000,000 |
Pension benefits | ' | ' | ' | ' |
Impact of PUC D&Os | -3,331,000 | -9,257,000 | -9,993,000 | -28,847,000 |
Net periodic benefit cost (adjusted for impact of PUC D&Os) | 11,768,000 | 12,429,000 | 35,411,000 | 36,464,000 |
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' | ' | ' |
Impact of PUC D&Os | -3,331,000 | -9,257,000 | -9,993,000 | -28,847,000 |
Net periodic benefit cost (adjusted for impact of PUC D&Os) | $11,528,000 | $11,538,000 | $34,584,000 | $33,540,000 |
Sharebased_compensation_Detail
Share-based compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Apr. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Stock appreciation rights (SARs) | Stock appreciation rights (SARs) | Stock appreciation rights (SARs) | Restricted shares | Restricted shares | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Long-term incentive plan (LTIP) | LTIP linked to TRS | LTIP linked to TRS | LTIP linked to TRS | LTIP linked to TRS | LTIP linked to TRS | LTIP linked to TRS | 2012-2014 LTIP linked to TRS | 2013-2015 LTIP linked to TRS | 2014 to 2016 LTIP linked to TRS | LTIP awards linked to other performance conditions | LTIP awards linked to other performance conditions | LTIP awards linked to other performance conditions | LTIP awards linked to other performance conditions | LTIP awards linked to other performance conditions | LTIP awards linked to other performance conditions | Equity and Incentive Plan (EIP) | Equity and Incentive Plan (EIP) | Stock Option and Incentive Plan [Member] | Nonemployee Director Stock Plan (2011 Director Plan) | |||||
Share-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares available for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' |
Shares remaining available for future issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,600,000 | ' | ' |
Shares that can be issued upon vesting of outstanding units and achievement of performance goals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' |
Estimated possible future issuances of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' |
Number of shares available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 169,290 |
Outstanding awards (in shares) | ' | ' | ' | ' | ' | ' | 164,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average exercise price (in dollars per share) | ' | ' | ' | ' | ' | ' | $26.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value (in dollars) | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares underlying SARs | ' | ' | ' | ' | 62,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average exercise price (in dollars per share) | ' | ' | ' | ' | $26.02 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding awards (in shares) | ' | ' | ' | ' | ' | ' | ' | 4,503 | 4,503 | 263,576 | 290,492 | 264,326 | 288,151 | 300,313 | 315,094 | ' | 257,956 | 232,127 | 257,956 | 232,127 | 235,064 | 239,256 | ' | ' | ' | 359,782 | 301,096 | 359,782 | 296,843 | 304,473 | 247,175 | ' | ' | ' | ' |
Outstanding, weighted-average exercise price | ' | ' | ' | ' | ' | ' | ' | $22.21 | $22.21 | $25.76 | $25.16 | $25.74 | $25.17 | $25.15 | $22.82 | ' | $28.45 | $32.88 | $28.45 | $32.88 | $32.87 | $29.12 | ' | ' | ' | $26.01 | $26.12 | $26.01 | $26.14 | $26.12 | $25.04 | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | 21,000 | ' | 5,100,000 | ' | ' | ' | ' | ' | ' | 2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average period over which unrecognized compensation cost expected to be recognized | ' | ' | ' | ' | ' | ' | ' | '2 months 12 days | ' | '2 years 7 months 6 days | ' | ' | ' | ' | ' | ' | '1 year 3 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 3 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of vested stock (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | 3,600,000 | ' | ' | ' | ' | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit (in dollars) | $700,000 | $900,000 | $2,600,000 | $2,200,000 | ' | ' | ' | ' | ' | $1,300,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | $900,000 | ' | ' | ' | ' | ' | ' | ' | $800,000 | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Payout low end of range (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payout high end of range (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for calculating total return to shareholders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award requisite service period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sharebased_compensation_Detail1
Share-based compensation (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based compensation | ' | ' | ' | ' |
Share-based compensation expense (in dollars) | $2,000,000 | $2,500,000 | $7,200,000 | $6,000,000 |
Income tax benefit (in dollars) | 700,000 | 900,000 | 2,600,000 | 2,200,000 |
Amount of compensation expense capitalized | 40,000 | 30,000 | 120,000 | 90,000 |
Nonqualified stock options (NQSOs) | ' | ' | ' | ' |
Share-based compensation | ' | ' | ' | ' |
Shares exercised | ' | 0 | ' | 14,000 |
Weighted-average exercise price | ' | $0 | ' | $20.49 |
Cash received from exercise (in dollars) | ' | 0 | ' | 287,000 |
Intrinsic value of shares exercised (in dollars) | ' | 0 | ' | 128,000 |
Tax benefit realized for the deduction of exercises (in dollars) | ' | 0 | ' | 50,000 |
Stock appreciation rights (SARs) | ' | ' | ' | ' |
Share-based compensation | ' | ' | ' | ' |
Number of shares underlying SARs | 102,000 | ' | 102,000 | ' |
Weighted-average remaining contractual life | ' | ' | '6 months | ' |
Weighted-average exercise price | $26.18 | ' | $26.18 | ' |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' | ' | ' |
Share-based compensation | ' | ' | ' | ' |
Share-based compensation expense (in dollars) | 600,000 | 800,000 | 2,200,000 | 1,900,000 |
Income tax benefit (in dollars) | $200,000 | $300,000 | $900,000 | $700,000 |
Sharebased_compensation_Shareb
Share-based compensation Share-based compensation (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based compensation | ' | ' | ' | ' |
Income tax benefit (in dollars) | $0.70 | $0.90 | $2.60 | $2.20 |
Common stock | ' | ' | ' | ' |
Share-based compensation | ' | ' | ' | ' |
Shares granted | ' | ' | 33,170 | 33,184 |
Fair value | ' | ' | 0.8 | 0.8 |
Income tax benefit (in dollars) | ' | ' | $0.30 | $0.30 |
Sharebased_compensation_Detail2
Share-based compensation (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Weighted-average grant-date fair value per share | ' | ' | ' | ' |
Total weighted-average grant-date fair value | $100,000 | $100,000 | ' | ' |
Tax benefits realized for the tax deductions | 700,000 | 900,000 | 2,600,000 | 2,200,000 |
Restricted shares | ' | ' | ' | ' |
Restricted stock awards and restricted stock units | ' | ' | ' | ' |
Outstanding, beginning of period (in shares) | ' | ' | 4,503 | ' |
Outstanding, end of period (in shares) | 4,503 | ' | 4,503 | ' |
Weighted-average grant-date fair value per share | ' | ' | ' | ' |
Outstanding, beginning of period (in dollars per share) | ' | ' | $22.21 | ' |
Outstanding, end of period (in dollars per share) | $22.21 | ' | $22.21 | ' |
Unrecognized compensation cost | 21,000 | ' | 21,000 | ' |
Weighted-average period over which unrecognized compensation cost expected to be recognized | ' | ' | '2 months 12 days | ' |
Restricted stock units | ' | ' | ' | ' |
Restricted stock awards and restricted stock units | ' | ' | ' | ' |
Outstanding, beginning of period (in shares) | 264,326 | 300,313 | 288,151 | 315,094 |
Granted (in shares) | 2,750 | 4,000 | 117,786 | 111,231 |
Vested (in shares) | -3,500 | -2,500 | -142,361 | -116,544 |
Forfeited (in shares) | ' | -11,321 | ' | -19,289 |
Outstanding, end of period (in shares) | 263,576 | 290,492 | 263,576 | 290,492 |
Weighted-average grant-date fair value per share | ' | ' | ' | ' |
Outstanding, beginning of period (in dollars per share) | $25.74 | $25.15 | $25.17 | $22.82 |
Granted (in dollars per share) | $24.48 | $26.48 | $25.17 | $26.88 |
Vested (in dollars per share) | $23.50 | $22.31 | $24.07 | $20.39 |
Forfeited (in dollars per share) | ' | $25.88 | ' | $25.62 |
Outstanding, end of period (in dollars per share) | $25.76 | $25.16 | $25.76 | $25.16 |
Total weighted-average grant-date fair value | ' | ' | 3,000,000 | 3,000,000 |
Unrecognized compensation cost | 5,100,000 | ' | 5,100,000 | ' |
Fair value of vested stock (in dollars) | ' | ' | 4,100,000 | 3,600,000 |
Weighted-average period over which unrecognized compensation cost expected to be recognized | ' | ' | '2 years 7 months 6 days | ' |
Tax benefits realized for the tax deductions | ' | ' | 1,300,000 | 1,000,000 |
LTIP linked to TRS | ' | ' | ' | ' |
Restricted stock awards and restricted stock units | ' | ' | ' | ' |
Outstanding, beginning of period (in shares) | 257,956 | 235,064 | 232,127 | 239,256 |
Granted (in shares) | 0 | 1,505 | 97,524 | 91,038 |
Vested (in shares) | ' | ' | -70,189 | -87,753 |
Forfeited (in shares) | 0 | -4,442 | -1,506 | -10,414 |
Outstanding, end of period (in shares) | 257,956 | 232,127 | 257,956 | 232,127 |
Weighted-average grant-date fair value per share | ' | ' | ' | ' |
Outstanding, beginning of period (in dollars per share) | $28.45 | $32.87 | $32.88 | $29.12 |
Granted (in dollars per share) | $0 | $32.69 | $22.95 | $32.69 |
Vested (in dollars per share) | ' | ' | $35.46 | $22.45 |
Forfeited (in dollars per share) | $0 | $32.40 | $28.32 | $32.72 |
Outstanding, end of period (in dollars per share) | $28.45 | $32.88 | $28.45 | $32.88 |
Total weighted-average grant-date fair value | 0 | 0 | 2,200,000 | 3,000,000 |
Unrecognized compensation cost | 2,700,000 | ' | 2,700,000 | ' |
Fair value of vested stock (in dollars) | ' | ' | ' | 2,200,000 |
Weighted-average period over which unrecognized compensation cost expected to be recognized | ' | ' | '1 year 3 months 18 days | ' |
Tax benefits realized for the tax deductions | ' | ' | ' | 900,000 |
LTIP awards linked to other performance conditions | ' | ' | ' | ' |
Restricted stock awards and restricted stock units | ' | ' | ' | ' |
Outstanding, beginning of period (in shares) | 359,782 | 304,473 | 296,843 | 247,175 |
Granted (in shares) | 0 | 1,504 | 129,603 | 120,399 |
Vested (in shares) | ' | ' | -65,089 | -18,280 |
Cancelled (shares) | ' | 0 | ' | -37,346 |
Forfeited (in shares) | 0 | -4,881 | -1,575 | -10,852 |
Outstanding, end of period (in shares) | 359,782 | 301,096 | 359,782 | 301,096 |
Weighted-average grant-date fair value per share | ' | ' | ' | ' |
Outstanding, beginning of period (in dollars per share) | $26.01 | $26.12 | $26.14 | $25.04 |
Granted (in dollars per share) | $0 | $27.11 | $25.18 | $26.89 |
Vested (in dollars per share) | ' | ' | $24.95 | $18.95 |
Cancelled (in dollars per share) | ' | $0 | ' | $24.96 |
Forfeited (in dollars per share) | $0 | $26.53 | $26.07 | $26.20 |
Outstanding, end of period (in dollars per share) | $26.01 | $26.12 | $26.01 | $26.12 |
Total weighted-average grant-date fair value | 0 | 0 | 3,300,000 | 3,200,000 |
Unrecognized compensation cost | 4,000,000 | ' | 4,000,000 | ' |
Fair value of vested stock (in dollars) | ' | ' | 1,900,000 | 600,000 |
Weighted-average period over which unrecognized compensation cost expected to be recognized | ' | ' | '1 year 3 months 18 days | ' |
Tax benefits realized for the tax deductions | ' | ' | $800,000 | $200,000 |
Sharebased_compensation_Detail3
Share-based compensation (Details 5) (LTIP linked to TRS, USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
LTIP linked to TRS | ' | ' |
Share-based compensation | ' | ' |
Risk-free interest rate (as a percent) | 0.66% | 0.38% |
Expected life | '3 years | '3 years |
Expected volatility (as a percent) | 17.80% | 19.40% |
Range of expected volatility for Peer Group, minimum (as a percent) | 12.40% | 12.40% |
Range of expected volatility for Peer Group, maximum (as a percent) | 23.30% | 25.30% |
Grant date fair value (in dollars per share) | $22.95 | $32.69 |
Earnings_per_share_and_shareho2
Earnings per share and shareholders' equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 14, 2014 | Dec. 19, 2013 | Mar. 20, 2013 | Mar. 19, 2013 |
Earnings per share, basic and diluted | ' | ' | ' | ' | ' | ' | ' | ' |
Distributed earnings, Basic (dollars per share) | $0.31 | $0.31 | $0.93 | $0.93 | ' | ' | ' | ' |
Distributed earnings, Diluted (dollars per share) | $0.31 | $0.31 | $0.93 | $0.93 | ' | ' | ' | ' |
Undistributed earnings, Basic (dollars per share) | $0.16 | $0.18 | $0.40 | $0.31 | ' | ' | ' | ' |
Undistributed earnings, Diluted (dollars per share) | $0.15 | $0.17 | $0.39 | $0.30 | ' | ' | ' | ' |
Earnings per share, Basic (in dollars per share) | $0.47 | $0.49 | $1.33 | $1.24 | ' | ' | ' | ' |
Earnings per share, Diluted (in dollars per share) | $0.46 | $0.48 | $1.32 | $1.23 | ' | ' | ' | ' |
Equity forward transaction | ' | ' | ' | ' | ' | ' | ' | ' |
Public offering related to equity forward transaction (in shares) | ' | ' | ' | ' | ' | ' | ' | 6,100,000 |
Sale of common stock related to equity forward transaction (in dollars per share) | $26.75 | ' | $26.75 | ' | ' | ' | ' | $26.75 |
Underwriting discount (in dollars per share) | $1.00 | ' | $1.00 | ' | ' | ' | ' | ' |
Closing price of common stock (in dollar per share) | ' | ' | ' | ' | ' | ' | ' | $27.01 |
Offering related to underwriters exercising their over-allotment option under equity forward transaction (in shares) | ' | ' | ' | ' | ' | ' | 900,000 | ' |
Shares borrowed by forward counterparty from third party | 7,000,000 | ' | 7,000,000 | ' | ' | ' | ' | ' |
Underwriting discount | ' | ' | ' | ' | $1 | $1.30 | ' | ' |
Capital shares reserved for future issuance, equity forward transaction | 4,700,000 | ' | 4,700,000 | ' | ' | ' | ' | ' |
Forward sale price (in dollars per share) | $23.23 | ' | $23.23 | ' | ' | ' | ' | $25.75 |
Initial fair value (in dollars per share) | $0 | ' | $0 | ' | ' | ' | ' | ' |
Cash in exchange of physical delivery of shares on settlement | 109 | ' | 109 | ' | ' | ' | ' | ' |
Delivery of cash on settlement | 16 | ' | 16 | ' | 23.9 | 32.1 | ' | ' |
Underwriting discount included in delivery of cash | $5 | ' | $5 | ' | ' | ' | ' | ' |
Delivery of net shares on settlement | 588,000 | ' | 588,000 | ' | 1,000,000 | 1,300,000 | ' | ' |
Stock appreciation rights (SARs) | Common stock | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive effect of HEI common stock | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive effects of SARs shares that were not included in the computation of diluted EPS (in shares) | ' | ' | ' | 164,000 | ' | ' | ' | ' |
Earnings_per_share_and_shareho3
Earnings per share and shareholders' equity (Details 2) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | ($16,750) | ($26,423) |
Current period other comprehensive income | 2,756 | -9,263 |
Ending balance | -13,994 | -35,686 |
Net unrealized gains (losses) on securities | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -3,663 | 10,761 |
Current period other comprehensive income | 1,691 | -11,462 |
Ending balance | -1,972 | -701 |
Unrealized losses on derivatives | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -525 | -760 |
Current period other comprehensive income | 177 | 177 |
Ending balance | -348 | -583 |
Retirement benefit plans | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -12,562 | -36,424 |
Current period other comprehensive income | 888 | 2,022 |
Ending balance | -11,674 | -34,402 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | 608 | -970 |
Current period other comprehensive income | 32 | 52 |
Ending balance | $640 | ($918) |
Earnings_per_share_and_shareho4
Earnings per share and shareholders' equity (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Interest expense | $19,170 | $19,043 | $58,648 | $56,216 |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | -2,829 | -5,789 | -8,515 | -17,490 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 2,542 | 5,156 | 7,627 | 15,468 |
Amount reclassified from AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Total reclassifications | 346 | 692 | -650 | 1,461 |
Net unrealized gains (losses) on securities | Amount reclassified from AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Revenues-bank (net gains on sales of securities) | 0 | 0 | -1,715 | -738 |
Derivatives qualified as cash flow hedges Interest rate contracts (settled in 2011) | Amount reclassified from AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Interest expense | 59 | 59 | ' | ' |
Derivatives qualified as cash flow hedges Interest rate contracts (settled in 2011) | Interest rate contracts | Amount reclassified from AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Interest expense | ' | ' | 177 | 177 |
Retirement benefit plans | Amount reclassified from AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | 2,829 | 5,789 | 8,515 | 17,490 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | -2,542 | -5,156 | -7,627 | -15,468 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | -2,552 | -5,173 | -7,659 | -15,520 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 2,542 | 5,156 | 7,627 | 15,468 |
Hawaiian Electric Company, Inc. and Subsidiaries | Amount reclassified from AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Total reclassifications | 10 | 17 | 32 | 52 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans | Amount reclassified from AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | 2,552 | 5,173 | 7,659 | 15,520 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | ($2,542) | ($5,156) | ($7,627) | ($15,468) |
Fair_value_measurements_Detail
Fair value measurements (Details) (Unused lines of credit, USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Unused lines of credit | ' |
Off-balance sheet financial instruments | ' |
HECO-obligated preferred securities of trust subsidiary | $0 |
Fair_value_measurements_Detail1
Fair value measurements (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Financial assets | ' | ' |
Available-for-sale investment and mortgage-related securities | $531,603,000 | $529,007,000 |
Financial liabilities | ' | ' |
Short-term borrowings—other than bank | 150,576,000 | 105,482,000 |
Other bank borrowings | 263,204,000 | 244,514,000 |
Carrying or notional amount | ' | ' |
Financial assets | ' | ' |
Money market funds | 10,000 | 10,000 |
Available-for-sale investment and mortgage-related securities | 531,603,000 | 529,007,000 |
Investment in stock of Federal Home Loan Bank of Seattle | 75,063,000 | 92,546,000 |
Loans receivable, net | 4,294,288,000 | 4,115,415,000 |
Derivative assets | 17,011,000 | 46,356,000 |
Financial liabilities | ' | ' |
Deposit liabilities | 4,533,797,000 | 4,372,477,000 |
Short-term borrowings—other than bank | 150,576,000 | 105,482,000 |
Other bank borrowings | 263,204,000 | 244,514,000 |
Long-term debt, net-other than bank | 1,517,946,000 | 1,492,945,000 |
Derivative liabilities | 10,207,000 | 4,732,000 |
Carrying or notional amount | American Savings Bank (ASB) | ' | ' |
Financial liabilities | ' | ' |
Loan commitments and unused lines and letters of credit | 1,800,000,000 | 1,600,000,000 |
Notional amount of loans serviced | 1,400,000,000 | 1,400,000,000 |
Estimated fair value | ' | ' |
Financial assets | ' | ' |
Money market funds | 10,000 | 10,000 |
Available-for-sale investment and mortgage-related securities | 531,603,000 | 529,007,000 |
Investment in stock of Federal Home Loan Bank of Seattle | 75,063,000 | 92,546,000 |
Loans receivable, net | 4,444,869,000 | 4,211,290,000 |
Derivative assets | 217,000 | 629,000 |
Financial liabilities | ' | ' |
Deposit liabilities | 4,534,177,000 | 4,374,377,000 |
Short-term borrowings—other than bank | 150,576,000 | 105,482,000 |
Other bank borrowings | 271,872,000 | 256,029,000 |
Long-term debt, net-other than bank | 1,626,159,000 | 1,508,425,000 |
Derivative liabilities | 27,000 | 26,000 |
Estimated fair value | Level 1 | ' | ' |
Financial assets | ' | ' |
Derivative assets | 0 | 98,000 |
Financial liabilities | ' | ' |
Derivative liabilities | 23,000 | ' |
Estimated fair value | Level 2 | ' | ' |
Financial assets | ' | ' |
Money market funds | 10,000 | 10,000 |
Available-for-sale investment and mortgage-related securities | 531,603,000 | 529,007,000 |
Investment in stock of Federal Home Loan Bank of Seattle | 75,063,000 | 92,546,000 |
Derivative assets | 217,000 | 531,000 |
Financial liabilities | ' | ' |
Deposit liabilities | 4,534,177,000 | 4,374,377,000 |
Short-term borrowings—other than bank | 150,576,000 | 105,482,000 |
Other bank borrowings | 271,872,000 | 256,029,000 |
Long-term debt, net-other than bank | 1,626,159,000 | 1,508,425,000 |
Derivative liabilities | 4,000 | 26,000 |
Estimated fair value | Level 3 | ' | ' |
Financial assets | ' | ' |
Loans receivable, net | 4,444,869,000 | 4,211,290,000 |
Estimated fair value | American Savings Bank (ASB) | ' | ' |
Financial liabilities | ' | ' |
Loan commitments and unused lines and letters of credit | 500,000 | 200,000 |
Servicing rights on loans | 16,100,000 | 15,700,000 |
Hawaiian Electric Company | Carrying or notional amount | ' | ' |
Financial liabilities | ' | ' |
Short-term Debt, Fair Value | 84,987,000 | ' |
Long-term debt, net-other than bank | 1,217,946,000 | 1,217,945,000 |
Hawaiian Electric Company | Estimated fair value | ' | ' |
Financial liabilities | ' | ' |
Short-term Debt, Fair Value | 84,987,000 | ' |
Long-term debt, net-other than bank | 1,316,380,000 | 1,228,966,000 |
Hawaiian Electric Company | Estimated fair value | Level 2 | ' | ' |
Financial liabilities | ' | ' |
Short-term Debt, Fair Value | 84,987,000 | ' |
Long-term debt, net-other than bank | $1,316,380,000 | $1,228,966,000 |
Fair_value_measurements_Detail2
Fair value measurements (Details 3) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Mortgage-related securities - FNMA, FHLMC and GNMA | Mortgage-related securities - FNMA, FHLMC and GNMA | Federal agency obligations | Federal agency obligations | Municipal bonds | Municipal bonds | Level 1 | Level 1 | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a nonrecurring basis | Fair value measurements on a nonrecurring basis | Fair value measurements on a nonrecurring basis | Fair value measurements on a nonrecurring basis | Fair value measurements on a nonrecurring basis | Fair value measurements on a nonrecurring basis | |||
Forward sale contracts | Forward sale contracts | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 1 | Level 1 | Level 1 | Level 1 | American Savings Bank (ASB) | American Savings Bank (ASB) | Estimated fair value | Estimated fair value | Level 3 | Level 3 | |||||||||
Interest rate lock commitments | Interest rate lock commitments | Forward sale contracts | Forward sale contracts | Bank | Bank | Other | Other | Mortgage-related securities - FNMA, FHLMC and GNMA | Mortgage-related securities - FNMA, FHLMC and GNMA | Federal agency obligations | Federal agency obligations | Municipal bonds | Municipal bonds | Forward sale contracts | Forward sale contracts | |||||||||||||||||||||
Bank | Bank | Bank | Bank | Bank | Bank | |||||||||||||||||||||||||||||||
Fair value measurements on a recurring and nonrecurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Money market funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,000 | $10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale securities | 531,603,000 | 529,007,000 | 425,307,000 | 369,444,000 | 106,296,000 | 80,973,000 | 0 | 78,590,000 | ' | ' | ' | ' | ' | ' | ' | ' | 531,603,000 | 529,007,000 | ' | ' | 425,307,000 | 369,444,000 | 106,296,000 | 80,973,000 | 0 | 78,590,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 217,000 | 531,000 | 216,000 | 488,000 | 1,000 | 43,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 98,000 | 0 | 98,000 | ' | ' | ' | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 4,000 | 26,000 | 1,000 | 24,000 | 3,000 | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,000 | ' | 23,000 | 0 | ' | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 4,000,000 | 2,000,000 | 4,000,000 |
Real estate acquired in settlement of loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 0 | 1,000,000 | 0 |
Adjustments to fair value of loans held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ' | ' | ' | ' |
Fair_value_measurements_Detail3
Fair value measurements (Details 4) (Fair Value, Inputs, Level 3, USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Fair value measurements | ' | ' |
Fair value | $2,144 | $4,416 |
Weighted average discount rate | ' | 4.50% |
Residential loan | Fair value of property or collateral | ' | ' |
Fair value measurements | ' | ' |
Fair value | 1,928 | 2,361 |
Appraised value, selling cost | 7.00% | 7.00% |
Appraised value, weighted average rate (as a percent) | 83.00% | 87.00% |
Residential loan | Fair value of property or collateral | Minimum | ' | ' |
Fair value measurements | ' | ' |
Appraised value (as a percent) | 44.00% | 44.00% |
Residential loan | Fair value of property or collateral | Maximum | ' | ' |
Fair value measurements | ' | ' |
Appraised value (as a percent) | 96.00% | 96.00% |
Home equity line of credit | Fair value of property or collateral | ' | ' |
Fair value measurements | ' | ' |
Fair value | ' | 170 |
Appraised value, selling cost | ' | 7.00% |
Appraised value, weighted average rate (as a percent) | ' | 50.00% |
Home equity line of credit | Fair value of property or collateral | Minimum | ' | ' |
Fair value measurements | ' | ' |
Appraised value (as a percent) | ' | 45.00% |
Home equity line of credit | Fair value of property or collateral | Maximum | ' | ' |
Fair value measurements | ' | ' |
Appraised value (as a percent) | ' | 50.00% |
Commercial loans | Fair value of property or collateral | ' | ' |
Fair value measurements | ' | ' |
Fair value | 216 | 217 |
Fair value, weighted average rate (as a percent) | 19.00% | 19.00% |
Real estate acquired in settlement of loans | Fair value of property or collateral | ' | ' |
Fair value measurements | ' | ' |
Fair value | 554 | ' |
Appraised value, weighted average rate (as a percent) | 100.00% | ' |
Real estate acquired in settlement of loans | Fair value of property or collateral | Minimum | ' | ' |
Fair value measurements | ' | ' |
Appraised value (as a percent) | 100.00% | ' |
Real estate acquired in settlement of loans | Fair value of property or collateral | Maximum | ' | ' |
Fair value measurements | ' | ' |
Appraised value (as a percent) | 100.00% | ' |
Commercial loan 2 | Fair value of property or collateral | Minimum | ' | ' |
Fair value measurements | ' | ' |
Fair value of business assets (as a percent) | ' | ' |
Commercial loan 2 | Fair value of property or collateral | Maximum | ' | ' |
Fair value measurements | ' | ' |
Fair value of business assets (as a percent) | ' | ' |
Commercial loan 2 | Discounted Cash Flow [Member] | ' | ' |
Fair value measurements | ' | ' |
Fair value | ' | $1,668 |
Fair value, weighted average rate (as a percent) | ' | 58.00% |
Cash_flows_Details
Cash flows (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Supplemental disclosures of cash flow information | ' | ' |
Interest paid | $64 | $62 |
Income taxes paid | 31 | 6 |
Income taxes refunded | 24 | 4 |
Supplemental disclosures of noncash activities | ' | ' |
Common stock dividends reinvested in HEI common stock | 0 | 18 |
Increases in common stock related to director and officer compensatory plans | 4 | 3 |
Real estate acquired in settlement of loans | 2 | 4 |
Loans transferred from held-for-investment to held-for-sale | 0 | 25 |
Obligations to fund low income housing investments | 6 | 0 |
Additions to electric utility property, plant and equipment - unpaid invoices and other | 40 | 17 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' |
Supplemental disclosures of cash flow information | ' | ' |
Interest paid | 44 | 43 |
Income taxes paid | 6 | 6 |
Income taxes refunded | 8 | 32 |
Supplemental disclosures of noncash activities | ' | ' |
Additions to electric utility property, plant and equipment - unpaid invoices and other | $40 | $17 |
Credit_agreement_and_longterm_1
Credit agreement and long-term debt (Details) (USD $) | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Apr. 02, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 02, 2014 | Mar. 31, 2014 | Apr. 02, 2014 | Mar. 31, 2014 | 2-May-14 | 5-May-14 | Apr. 02, 2014 | Apr. 02, 2014 | |
Institution | Maximum | HELCO | Maui Electric | Line of credit facility | Line of credit facility | Line of credit facility | Line of credit facility | Eurodollar term loan | Medium-term Notes 6.51 Percent Due 2014 | Adjusted LIBO Rate | Adjusted LIBO Rate | |||
Hawaiian Electric Company | Hawaiian Electric Company | Loans payable | Medium-term note | Line of credit facility | Line of credit facility | |||||||||
Hawaiian Electric Company | ||||||||||||||
Credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of financial institutions | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving noncollateralized credit facility with a letter of credit sub-facility | ' | ' | ' | ' | ' | ' | $150,000,000 | $125,000,000 | $200,000,000 | $175,000,000 | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.38% | 1.25% |
Unused capacity commitment fee | ' | ' | ' | ' | ' | ' | 0.20% | ' | 0.18% | ' | ' | ' | ' | ' |
Capitalization ratio required to be maintained as per the debt covenant (as a percent) | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual capitalization ratio (as a percent) | 17.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ratio of consolidated subsidiary debt to total consolidated capitalization required to be maintained as per the debt covenant (as a percent) | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual ratio of consolidated subsidiary debt to total consolidated capitalization (as a percent) | ' | ' | ' | ' | 41.00% | 43.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Ratio of consolidated capitalization required to be maintained as per the debt covenant (as a percent) | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual ratio of consolidated debt to total consolidated capitalization (as a percent) | 55.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 125,000,000 | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 125,000,000 | ' | ' | ' |
Term of loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' |
Initial interest rate for initial period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.12% | ' | ' | ' |
Repayments of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000,000 | ' | ' |
Debt instrument, stated interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.51% | ' | ' |