Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 27, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | HAWAIIAN ELECTRIC INDUSTRIES INC | |
Entity Central Index Key | 354,707 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
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 | 108,785,486 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Entity Information [Line Items] | ||
Entity Registrant Name | HAWAIIAN ELECTRIC COMPANY INC | |
Entity Central Index Key | 46,207 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
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 | 16,019,785 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues | ||||
Total revenues | $ 632,281 | $ 566,244 | $ 1,223,843 | $ 1,117,204 |
Expenses | ||||
Purchased power | 153,000 | 139,000 | 280,000 | 255,000 |
Total expenses | 556,385 | 480,789 | 1,080,085 | 962,898 |
Operating income (loss) | ||||
Total operating income | 75,896 | 85,455 | 143,758 | 154,306 |
Interest expense, net—other than on deposit liabilities and other bank borrowings | (20,440) | (17,301) | (40,008) | (37,427) |
Allowance for borrowed funds used during construction | 1,143 | 760 | 2,032 | 1,422 |
Allowance for equity funds used during construction | 3,027 | 1,997 | 5,426 | 3,736 |
Income before income taxes | 59,626 | 70,911 | 111,208 | 122,037 |
Income taxes | 20,492 | 26,310 | 37,408 | 44,611 |
Net income | 39,134 | 44,601 | 73,800 | 77,426 |
Preferred stock dividends of subsidiaries | 473 | 473 | 946 | 946 |
Net income for common stock | $ 38,661 | $ 44,128 | $ 72,854 | $ 76,480 |
Basic earnings per common share (in dollars per share) | $ 0.36 | $ 0.41 | $ 0.67 | $ 0.71 |
Diluted earnings per common share (in dollars per share) | 0.36 | 0.41 | 0.67 | 0.71 |
Dividends declared per common share (in dollars per share) | $ 0.31 | $ 0.31 | $ 0.62 | $ 0.62 |
Weighted-average number of common shares outstanding (in shares) | 108,750 | 107,962 | 108,712 | 107,791 |
Net effect of potentially dilutive shares (in shares) | 47 | 171 | 157 | 187 |
Weighted-average shares assuming dilution (in shares) | 108,797 | 108,133 | 108,869 | 107,978 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Revenues | ||||
Total revenues | $ 556,875 | $ 495,395 | $ 1,075,486 | $ 977,447 |
Expenses | ||||
Fuel oil | 141,259 | 91,899 | 285,529 | 205,639 |
Purchased power | 153,067 | 139,058 | 280,191 | 254,917 |
Other operation and maintenance | 106,374 | 99,563 | 206,614 | 203,471 |
Depreciation | 48,156 | 46,760 | 96,372 | 93,541 |
Taxes, other than income taxes | 52,972 | 47,429 | 102,795 | 93,867 |
Total expenses | 501,828 | 424,709 | 971,501 | 851,435 |
Operating income (loss) | ||||
Total operating income | 55,047 | 70,686 | 103,985 | 126,012 |
Allowance for borrowed funds used during construction | 1,143 | 760 | 2,032 | 1,422 |
Allowance for equity funds used during construction | 3,027 | 1,997 | 5,426 | 3,736 |
Interest expense and other charges, net | (18,214) | (15,103) | (35,718) | (32,411) |
Income before income taxes | 41,003 | 58,340 | 75,725 | 98,759 |
Income taxes | 14,860 | 21,984 | 27,618 | 36,537 |
Net income | 26,143 | 36,356 | 48,107 | 62,222 |
Preferred stock dividends of subsidiaries | 229 | 229 | 458 | 458 |
Net income attributable to Hawaiian Electric | 25,914 | 36,127 | 47,649 | 61,764 |
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 540 | 540 |
Net income for common stock | 25,644 | 35,857 | 47,109 | 61,224 |
Electric utility | ||||
Revenues | ||||
Total revenues | 556,875 | 495,395 | 1,075,486 | 977,447 |
Expenses | ||||
Total expenses | 501,828 | 424,709 | 971,501 | 851,435 |
Operating income (loss) | ||||
Total operating income | 55,047 | 70,686 | 103,985 | 126,012 |
Income before income taxes | 41,003 | 58,340 | 75,725 | 98,759 |
Income taxes | 14,860 | 21,984 | 27,618 | 36,537 |
Net income | 26,143 | 36,356 | 48,107 | 62,222 |
Preferred stock dividends of subsidiaries | 499 | 499 | 998 | 998 |
Net income for common stock | 25,644 | 35,857 | 47,109 | 61,224 |
Bank | ||||
Revenues | ||||
Total revenues | 75,329 | 70,749 | 148,185 | 139,589 |
Expenses | ||||
Total expenses | 50,533 | 50,525 | 99,229 | 99,771 |
Operating income (loss) | ||||
Total operating income | 24,796 | 20,224 | 48,956 | 39,818 |
Income before income taxes | 24,796 | 20,224 | 48,956 | 39,818 |
Income taxes | 8,063 | 6,939 | 16,410 | 13,860 |
Net income | 16,733 | 13,285 | 32,546 | 25,958 |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 |
Net income for common stock | 16,733 | 13,285 | 32,546 | 25,958 |
Other | ||||
Revenues | ||||
Total revenues | 77 | 100 | 172 | 168 |
Expenses | ||||
Total expenses | 4,024 | 5,555 | 9,355 | 11,692 |
Operating income (loss) | ||||
Total operating income | (3,947) | (5,455) | (9,183) | (11,524) |
Income before income taxes | (6,173) | (7,653) | (13,473) | (16,540) |
Income taxes | (2,431) | (2,613) | (6,620) | (5,786) |
Net income | (3,742) | (5,040) | (6,853) | (10,754) |
Preferred stock dividends of subsidiaries | (26) | (26) | (52) | (52) |
Net income for common stock | $ (3,716) | $ (5,014) | $ (6,801) | $ (10,702) |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income for common stock | $ 38,661 | $ 44,128 | $ 72,854 | $ 76,480 |
Net unrealized gains on available-for-sale investment securities: | ||||
Net unrealized gains on available-for-sale investment securities arising during the period, net of taxes | 2,021 | 2,916 | 2,244 | 10,344 |
Reclassification adjustment for net realized gains included in net income, net of taxes | 0 | (360) | 0 | (360) |
Derivatives qualifying as cash flow hedges: | ||||
Effective portion of foreign currency hedge net unrealized gains (losses) arising during the period, net of (taxes) benefits | 0 | (745) | 0 | 257 |
Reclassification adjustment to net income, net of tax benefits | 0 | 0 | 454 | 54 |
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 3,930 | 3,698 | 7,851 | 7,236 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (3,581) | (3,401) | (7,194) | (6,623) |
Other comprehensive income, net of taxes | 2,370 | 2,108 | 3,355 | 10,908 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 41,031 | 46,236 | 76,209 | 87,388 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Net income for common stock | 25,644 | 35,857 | 47,109 | 61,224 |
Derivatives qualifying as cash flow hedges: | ||||
Effective portion of foreign currency hedge net unrealized gains (losses) arising during the period, net of (taxes) benefits | 0 | (745) | 0 | 257 |
Reclassification adjustment to net income, net of tax benefits | 0 | 0 | 454 | 0 |
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 3,621 | 3,391 | 7,239 | 6,627 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (3,581) | (3,401) | (7,194) | (6,623) |
Other comprehensive income, net of taxes | 40 | (755) | 499 | 261 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ 25,684 | $ 35,102 | $ 47,608 | $ 61,485 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized gains (losses) on securities arising during the period, taxes (benefits) | $ 1,334 | $ 1,925 | $ 1,482 | $ 6,830 |
Less: reclassification adjustment to net income - realized gains on available-for-sale investment securities | 0 | 238 | 0 | 238 |
Effective portion of foreign currency hedge net unrealized gains (losses) arising during the period, net of (taxes) benefits of nil, $475, nil and ($163), respectively | 0 | (475) | 0 | 163 |
Less: reclassification adjustment to net income, taxes | 0 | 0 | (289) | (35) |
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax benefits | (2,508) | (2,362) | (5,010) | (4,619) |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, taxes | 2,281 | 2,166 | 4,582 | 4,218 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Effective portion of foreign currency hedge net unrealized gains (losses) arising during the period, net of (taxes) benefits of nil, $475, nil and ($163), respectively | 0 | (475) | 0 | 163 |
Less: reclassification adjustment to net income, taxes | 0 | 0 | (289) | 0 |
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax benefits | (2,306) | (2,160) | (4,610) | (4,221) |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, taxes | $ 2,281 | $ 2,166 | $ 4,582 | $ 4,218 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 210,381 | $ 278,452 |
Accounts receivable and unbilled revenues, net | 249,539 | 237,950 |
Available-for-sale investment securities, at fair value | 1,302,886 | 1,105,182 |
Stock in Federal Home Loan Bank, at cost | 11,706 | 11,218 |
Loans receivable held for investment, net | 4,688,278 | 4,683,160 |
Loans held for sale, at lower of cost or fair value | 5,261 | 18,817 |
Property, plant and equipment, net of accumulated depreciation | 4,726,524 | 4,603,465 |
Regulatory assets | 938,277 | 957,451 |
Other | 478,763 | 447,621 |
Goodwill | 82,190 | 82,190 |
Utility property, plant and equipment | ||
Total property, plant and equipment, net | 4,726,524 | 4,603,465 |
Current assets | ||
Cash and cash equivalents | 210,381 | 278,452 |
Other long-term assets | ||
Total assets | 12,693,805 | 12,425,506 |
Liabilities | ||
Accounts payable | 194,755 | 143,279 |
Interest and dividends payable | 22,124 | 25,225 |
Deposit liabilities | 5,724,386 | 5,548,929 |
Short-term borrowings—other than bank | 49,789 | 0 |
Other bank borrowings | 188,130 | 192,618 |
Long-term debt, net—other than bank | 1,618,647 | 1,619,019 |
Deferred income taxes | 750,413 | 728,806 |
Regulatory liabilities | 431,630 | 410,693 |
Contributions in aid of construction | 543,204 | 543,525 |
Defined benefit pension and other postretirement benefit plans liability | 626,795 | 638,854 |
Other | 434,610 | 473,512 |
Total liabilities | 10,584,483 | 10,324,460 |
Capitalization | ||
Retained earnings | 444,400 | 438,972 |
Accumulated other comprehensive loss, net of tax benefits | (29,774) | (33,129) |
Total shareholders’ equity | 2,075,029 | 2,066,753 |
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 0 | 0 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies | ||
Current liabilities | ||
Interest and dividends payable | 22,124 | 25,225 |
Deferred credits and other liabilities | ||
Deferred income taxes | 750,413 | 728,806 |
Contributions in aid of construction | 543,204 | 543,525 |
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: 108,785,486 shares and 108,583,413 shares at June 30, 2017 and December 31, 2016, respectively | 1,660,403 | 1,660,910 |
Retained earnings | 444,400 | 438,972 |
Accumulated other comprehensive loss, net of tax benefits | (29,774) | (33,129) |
Total shareholders’ equity | 2,075,029 | 2,066,753 |
Total liabilities and shareholders’ equity | 12,693,805 | 12,425,506 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Assets | ||
Cash and cash equivalents | 42,582 | 74,286 |
Property, plant and equipment, net of accumulated depreciation | 4,614,347 | 4,508,752 |
Utility property, plant and equipment | ||
Land | 53,178 | 53,153 |
Plant and equipment | 6,711,418 | 6,605,732 |
Less accumulated depreciation | (2,430,097) | (2,369,282) |
Construction in progress | 272,438 | 211,742 |
Utility property, plant and equipment, net | 4,606,937 | 4,501,345 |
Nonutility property, plant and equipment, less accumulated depreciation | 7,410 | 7,407 |
Total property, plant and equipment, net | 4,614,347 | 4,508,752 |
Current assets | ||
Cash and cash equivalents | 42,582 | 74,286 |
Customer accounts receivable, net | 126,161 | 123,688 |
Accrued unbilled revenues, net | 103,596 | 91,693 |
Other accounts receivable, net | 3,684 | 5,233 |
Fuel oil stock, at average cost | 72,392 | 66,430 |
Materials and supplies, at average cost | 57,099 | 53,679 |
Prepayments and other | 36,340 | 23,100 |
Regulatory assets | 74,167 | 66,032 |
Total current assets | 516,021 | 504,141 |
Other long-term assets | ||
Regulatory assets | 864,110 | 891,419 |
Unamortized debt expense | 690 | 208 |
Other | 75,987 | 70,908 |
Other | 940,787 | 962,535 |
Total assets | 6,071,155 | 5,975,428 |
Liabilities | ||
Interest and dividends payable | 19,497 | 22,838 |
Deferred income taxes | 759,972 | 733,659 |
Contributions in aid of construction | 543,204 | 543,525 |
Capitalization | ||
Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 16,019,785 shares at June 30, 2017 and December 31, 2016) | 106,818 | 106,818 |
Premium on capital stock | 601,486 | 601,491 |
Retained earnings | 1,095,025 | 1,091,800 |
Accumulated other comprehensive loss, net of tax benefits | 177 | (322) |
Total shareholders’ equity | 1,803,506 | 1,799,787 |
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 34,293 | 34,293 |
Long-term debt, net | 1,318,845 | 1,319,260 |
Total capitalization | 3,156,644 | 3,153,340 |
Commitments and contingencies | ||
Current liabilities | ||
Short-term borrowings from non-affiliates | 43,990 | 0 |
Accounts payable | 162,375 | 117,814 |
Interest and dividends payable | 19,497 | 22,838 |
Taxes accrued | 142,263 | 172,730 |
Regulatory liabilities | 2,883 | 3,762 |
Other | 53,140 | 55,221 |
Total current liabilities | 424,148 | 372,365 |
Deferred credits and other liabilities | ||
Deferred income taxes | 759,972 | 733,659 |
Regulatory liabilities | 428,747 | 406,931 |
Unamortized tax credits | 91,386 | 88,961 |
Defined benefit pension and other postretirement benefit plans liability | 587,718 | 599,726 |
Other | 79,336 | 76,921 |
Total deferred credits and other liabilities | 1,947,159 | 1,906,198 |
Contributions in aid of construction | 543,204 | 543,525 |
Shareholders’ equity | ||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 34,293 | 34,293 |
Retained earnings | 1,095,025 | 1,091,800 |
Accumulated other comprehensive loss, net of tax benefits | 177 | (322) |
Total shareholders’ equity | 1,803,506 | 1,799,787 |
Total liabilities and shareholders’ equity | $ 6,071,155 | $ 5,975,428 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property, plant and equipment, accumulated depreciation | $ 2,508,291 | $ 2,444,348 |
Preferred stock, authorized shares (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Common stock, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued shares (in shares) | 108,785,486 | 108,583,413 |
Common stock, outstanding shares (in shares) | 108,785,486 | 108,583,413 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Nonutility property, plant and equipment, accumulated depreciation | $ 1,233 | $ 1,232 |
Common stock, par value (in dollars per share) | $ 6.67 | $ 6.67 |
Common stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Common stock, outstanding shares (in shares) | 16,019,785 | 16,019,785 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Shareholders' Equity and Common Equity (unaudited) - USD ($) $ in Thousands | Total | Hawaiian Electric Company, Inc. and Subsidiaries | Common stock including additional paid-in capital | Common stockHawaiian Electric Company, Inc. and Subsidiaries | Premium on capital stockHawaiian Electric Company, Inc. and Subsidiaries | Retained Earnings | Retained EarningsHawaiian Electric Company, Inc. and Subsidiaries | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss)Hawaiian Electric Company, Inc. and Subsidiaries |
Beginning Balance at Dec. 31, 2015 | $ 1,927,640 | $ 1,728,325 | $ 1,629,136 | $ 105,388 | $ 578,930 | $ 324,766 | $ 1,043,082 | $ (26,262) | $ 925 |
Beginning Balance (in shares) at Dec. 31, 2015 | 107,460,000 | 15,805,000 | |||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 76,480 | 61,224 | 76,480 | 61,224 | |||||
Other comprehensive income, net of taxes | 10,908 | 261 | 10,908 | 261 | |||||
Issuance of common stock, net of expenses | 18,002 | $ 18,002 | |||||||
Issuance of common stock, net of expenses (in shares) | 727,000 | ||||||||
Common stock dividends | (66,848) | (46,800) | (66,848) | (46,800) | |||||
Common stock issuance expenses | (4) | (4) | |||||||
Ending Balance at Jun. 30, 2016 | 1,966,182 | 1,743,006 | $ 1,647,138 | $ 105,388 | 578,926 | 334,398 | 1,057,506 | (15,354) | 1,186 |
Ending Balance (in shares) at Jun. 30, 2016 | 108,187,000 | 15,805,000 | |||||||
Beginning Balance at Dec. 31, 2016 | $ 2,066,753 | 1,799,787 | $ 1,660,910 | $ 106,818 | 601,491 | 438,972 | 1,091,800 | (33,129) | (322) |
Beginning Balance (in shares) at Dec. 31, 2016 | 108,583,413 | 108,583,000 | 16,020,000 | ||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | $ 72,854 | 47,109 | 72,854 | 47,109 | |||||
Other comprehensive income, net of taxes | 3,355 | 499 | 3,355 | 499 | |||||
Issuance of common stock, net of expenses | (507) | $ (507) | |||||||
Issuance of common stock, net of expenses (in shares) | 202,000 | ||||||||
Common stock dividends | (67,426) | (43,884) | (67,426) | (43,884) | |||||
Common stock issuance expenses | (5) | (5) | |||||||
Ending Balance at Jun. 30, 2017 | $ 2,075,029 | $ 1,803,506 | $ 1,660,403 | $ 106,818 | $ 601,486 | $ 444,400 | $ 1,095,025 | $ (29,774) | $ 177 |
Ending Balance (in shares) at Jun. 30, 2017 | 108,785,486 | 108,785,000 | 16,020,000 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities | ||
Net income | $ 73,800 | $ 77,426 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 100,062 | 97,148 |
Other amortization | 6,101 | 4,840 |
Provision for loan losses | 6,741 | 9,519 |
Loans receivable originated and purchased, held for sale | (69,595) | (98,004) |
Proceeds from sale of loans receivable, held for sale | 79,944 | 98,457 |
Deferred income taxes | 17,047 | 21,738 |
Share-based compensation expense | 3,285 | 2,011 |
Allowance for equity funds used during construction | (5,426) | (3,736) |
Other | 246 | 2,982 |
Changes in assets and liabilities | ||
Decrease (increase) in accounts receivable and unbilled revenues, net | (12,394) | 12,894 |
Decrease (increase) in fuel oil stock | (5,962) | 9,644 |
Decrease (increase) in regulatory assets | 8,179 | (11,752) |
Increase in accounts, interest and dividends payable | 55,451 | 20,837 |
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | (37,954) | 622 |
Increase in defined benefit pension and other postretirement benefit plans liability | 420 | 95 |
Change in other assets and liabilities | (33,922) | (18,878) |
Net cash provided by operating activities | 186,023 | 225,843 |
Cash flows from investing activities | ||
Available-for-sale investment securities purchased | (295,510) | (176,598) |
Principal repayments on available-for-sale investment securities | 99,663 | 102,716 |
Proceeds from sale of available-for-sale investment securities | 0 | 16,423 |
Purchase of stock from Federal Home Loan Bank | (2,868) | (2,773) |
Redemption of stock from Federal Home Loan Bank | 2,380 | 2,233 |
Net increase in loans held for investment | (20,326) | (155,930) |
Proceeds from sale of commercial loans | 13,493 | 14,105 |
Proceeds from sale of real estate acquired in settlement of loans | 185 | 553 |
Capital expenditures | (222,246) | (203,631) |
Contributions in aid of construction | 17,571 | 16,810 |
Other | 8,216 | 1,106 |
Net cash used in investing activities | (399,442) | (384,986) |
Cash flows from financing activities | ||
Net increase in deposit liabilities | 175,457 | 206,949 |
Net increase in short-term borrowings with original maturities of three months or less | 49,789 | 12,922 |
Net increase (decrease) in retail repurchase agreements | 9,048 | (27,158) |
Proceeds from other bank borrowings | 59,500 | 55,835 |
Repayments of other bank borrowings | (73,034) | (84,369) |
Proceeds from issuance of long-term debt | 265,000 | 75,000 |
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (265,000) | (75,000) |
Withheld shares for employee taxes on vested share-based compensation | (3,787) | (2,345) |
Net proceeds from issuance of common stock | 0 | 7,668 |
Common stock dividends | (67,426) | (55,591) |
Preferred stock dividends of subsidiaries | (946) | (946) |
Other | (3,253) | 2,908 |
Net cash provided by financing activities | 145,348 | 115,873 |
Net decrease in cash and cash equivalents | (68,071) | (43,270) |
Cash and cash equivalents, beginning of period | 278,452 | 300,478 |
Cash and cash equivalents, end of period | 210,381 | 257,208 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Cash flows from operating activities | ||
Net income | 48,107 | 62,222 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 96,372 | 93,541 |
Other amortization | 4,262 | 3,793 |
Deferred income taxes | 23,599 | 32,118 |
Allowance for equity funds used during construction | (5,426) | (3,736) |
Other | 1,615 | 2,982 |
Changes in assets and liabilities | ||
Decrease (increase) in accounts receivable | (1,729) | 16,682 |
Increase in accrued unbilled revenues | (11,903) | (3,215) |
Decrease (increase) in fuel oil stock | (5,962) | 9,644 |
Increase in materials and supplies | (3,420) | (2,482) |
Decrease (increase) in regulatory assets | 8,179 | (677) |
Increase in accounts payable | 51,637 | 23,427 |
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | (40,910) | (28,192) |
Increase in defined benefit pension and other postretirement benefit plans liability | 302 | 237 |
Change in other assets and liabilities | (14,047) | (12,220) |
Net cash provided by operating activities | 150,676 | 194,124 |
Cash flows from investing activities | ||
Capital expenditures | (202,080) | (197,332) |
Contributions in aid of construction | 17,571 | 16,810 |
Other | 6,250 | 331 |
Net cash used in investing activities | (178,259) | (180,191) |
Cash flows from financing activities | ||
Net increase in short-term borrowings with original maturities of three months or less | 43,990 | 36,995 |
Proceeds from issuance of long-term debt | 265,000 | 0 |
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (265,000) | 0 |
Common stock dividends | (43,884) | (46,800) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (998) | (998) |
Other | (3,229) | 0 |
Net cash provided by financing activities | (4,121) | (10,803) |
Net decrease in cash and cash equivalents | (31,704) | 3,130 |
Cash and cash equivalents, beginning of period | 74,286 | 24,449 |
Cash and cash equivalents, end of period | $ 42,582 | $ 27,579 |
Basis of presentation
Basis of presentation | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed 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 unaudited condensed consolidated 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 condensed 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, 2016 . In the opinion of HEI’s and Hawaiian Electric’s management, the accompanying unaudited condensed consolidated financial statements contain all material adjustments required by GAAP to fairly state consolidated HEI’s and Hawaiian Electric’s financial positions as of June 30, 2017 and December 31, 2016 , the results of their operations for the three and six months ended June 30, 2017 and 2016 and their cash flows for the six months ended June 30, 2017 and 2016 . All such adjustments are of a normal recurring nature, unless otherwise disclosed below or in other referenced material. Results of operations for interim periods are not necessarily indicative of results for the full year. Recent accounting pronouncements. Revenues from contracts with customers . In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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: (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. ASU No. 2014-09 also requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. As of June 30, 2017 , the Company has identified its revenue streams from, and performance obligations related to, contracts with customers and has performed an analysis of these revenue streams for the impacts of Topic 606. The majority of the revenue subject to Topic 606 is the Utilities’ electric sales revenue and the Company and Hawaiian Electric do not expect a material impact on the timing or pattern of revenue recognition upon adoption of ASU No. 2014-09. The Company and Hawaiian Electric expect changes to the presentation and disclosure of revenues. The Company plans to adopt ASU No. 2014-09 (and subsequently issued revenue-related ASUs, as applicable) in the first quarter of 2018 using the modified retrospective approach. The Company continues to monitor developments in industry-specific application guidance and evaluate further impacts of Topic 606. Financial instruments . In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which, among other things: • Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. • Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). • Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The Company plans to adopt ASU No. 2016-01 in the first quarter of 2018 and expects changes to disclosures, but otherwise believes the impact of adoption will not be material to the Company’s and Hawaiian Electric’s consolidated financial statements. Leases . In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires that lessees recognize a liability to make lease payments (the lease liability) and a right-of-use asset, representing its right to use the underlying asset for the lease term, for all leases (except short-term leases) at the commencement date. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election and recognize lease expense for such leases generally on a straight-line basis over the lease term. For finance leases, a lessee is required to recognize interest on the lease liability separately from amortization of the right-of-use asset in the condensed consolidated statement of income. For operating leases, a lessee is required to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis. The Company plans to adopt ASU No. 2016-02 in the first quarter of 2019 and has not yet determined the method or impact of adoption. Stock compensation . In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for share-based payment transactions. The Company adopted ASU No. 2016-09 in the first quarter of 2017. From January 1, 2017, all excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in the income statement. From January 1, 2017, no excess tax benefits or deficiencies are included in determining the assumed proceeds under the treasury stock method of calculating diluted EPS. As of January 1, 2017, HEI adopted an accounting policy to account for forfeitures when they occur. From January 1, 2017, HEI retrospectively applied the cashflow guidance for taxes paid (equivalent to the value of withheld shares for tax withholding purposes) and excess tax benefits. Excess tax benefits will be classified along with other income tax cash flows as an operating activity and the cash payments made to taxing authorities on the employees’ behalf for withheld shares are classified as financing activities on the HEI unaudited condensed consolidated statements of cash flows for all periods that are presented. Credit Losses . In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ,” which is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations . ASU No. 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date (based on historical experience, current conditions and reasonable and supportable forecasts) and enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU No. 2016-13 amends the accounting for credit losses on available-for-sale (AFS) debt securities and purchased financial assets with credit deterioration. The other-than-temporary impairment model of accounting for credit losses on AFS debt securities will be replaced with an estimate of expected credit losses only when the fair value is below the amortized cost of the asset. The length of time the fair value of an AFS debt security has been below the amortized cost will no longer impact the determination of whether a credit loss exists. The AFS debt security model will also require the use of an allowance to record the estimated losses (and subsequent recoveries). The accounting for the initial recognition of the estimated expected credit losses for purchased financial assets with credit deterioration would be recognized through an allowance for credit losses with an offset to the cost basis of the related financial asset at acquisition (i.e., there is no impact to net income at initial recognition). The Company plans to adopt ASU No. 2016-13 in the first quarter of 2020 and has not yet determined the impact of adoption. Cash Flows . In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on eight specific cash flow issues - debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies), distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. The Company plans to adopt ASU No. 2016-15 in the first quarter of 2018 using a retrospective transition method and has not yet determined the impact of adoption. Restricted cash . In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company plans to adopt ASU No. 2016-18 in the first quarter of 2018 using a retrospective transition method and believes the impact of adoption will not be material to the Company’s and Hawaiian Electric’s consolidated statements of cash flows. Goodwill impairment . In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Prior to the adoption of ASU No. 2017-04, an entity was required to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compared the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeded its fair value, the entity performed Step 2 and compared the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeded the implied fair value of that goodwill would then be recorded. ASU No. 2017-04 removes the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value. ASU No. 2017-04 does not amend the optional qualitative assessment of goodwill impairment. The Company plans to adopt ASU No. 2017-04 prospectively in the fourth quarter of 2017 and believes the impact of adoption will not be material to the Company’s and Hawaiian Electric’s consolidated financial statements. Net periodic pension cost and net periodic postretirement benefit cost . In March 2017, the FASB issued ASU No. 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost and net periodic postretirement benefit cost as defined in paragraphs 715-30-35-4 and 715-60-35-9 to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component is eligible for capitalization under GAAP, when applicable. The Company plans to adopt ASU No. 2017-07 in the first quarter of 2018 and has not yet determined the impact of adoption. |
Segment financial information
Segment financial information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment financial information | Segment financial information (in thousands) Electric utility Bank Other Total Three months ended June 30, 2017 Revenues from external customers $ 556,836 $ 75,329 $ 116 $ 632,281 Intersegment revenues (eliminations) 39 — (39 ) — Revenues $ 556,875 $ 75,329 $ 77 $ 632,281 Income (loss) before income taxes $ 41,003 $ 24,796 $ (6,173 ) $ 59,626 Income taxes (benefit) 14,860 8,063 (2,431 ) 20,492 Net income (loss) 26,143 16,733 (3,742 ) 39,134 Preferred stock dividends of subsidiaries 499 — (26 ) 473 Net income (loss) for common stock $ 25,644 $ 16,733 $ (3,716 ) $ 38,661 Six months ended June 30, 2017 Revenues from external customers $ 1,075,402 $ 148,185 $ 256 $ 1,223,843 Intersegment revenues (eliminations) 84 — (84 ) — Revenues $ 1,075,486 $ 148,185 $ 172 $ 1,223,843 Income (loss) before income taxes $ 75,725 $ 48,956 $ (13,473 ) $ 111,208 Income taxes (benefit) 27,618 16,410 (6,620 ) 37,408 Net income (loss) 48,107 32,546 (6,853 ) 73,800 Preferred stock dividends of subsidiaries 998 — (52 ) 946 Net income (loss) for common stock $ 47,109 $ 32,546 $ (6,801 ) $ 72,854 Total assets (at June 30, 2017) $ 6,071,155 $ 6,610,877 $ 11,773 $ 12,693,805 Three months ended June 30, 2016 Revenues from external customers $ 495,349 $ 70,749 $ 146 $ 566,244 Intersegment revenues (eliminations) 46 — (46 ) — Revenues $ 495,395 $ 70,749 $ 100 $ 566,244 Income (loss) before income taxes $ 58,340 $ 20,224 $ (7,653 ) $ 70,911 Income taxes (benefit) 21,984 6,939 (2,613 ) 26,310 Net income (loss) 36,356 13,285 (5,040 ) 44,601 Preferred stock dividends of subsidiaries 499 — (26 ) 473 Net income (loss) for common stock $ 35,857 $ 13,285 $ (5,014 ) $ 44,128 Six months ended June 30, 2016 Revenues from external customers $ 977,394 $ 139,589 $ 221 $ 1,117,204 Intersegment revenues (eliminations) 53 — (53 ) — Revenues $ 977,447 $ 139,589 $ 168 $ 1,117,204 Income (loss) before income taxes $ 98,759 $ 39,818 $ (16,540 ) $ 122,037 Income taxes (benefit) 36,537 13,860 (5,786 ) 44,611 Net income (loss) 62,222 25,958 (10,754 ) 77,426 Preferred stock dividends of subsidiaries 998 — (52 ) 946 Net income (loss) for common stock $ 61,224 $ 25,958 $ (10,702 ) $ 76,480 Total assets (at December 31, 2016) $ 5,975,428 $ 6,421,357 $ 28,721 $ 12,425,506 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 and the profit on such sales is nominal. 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 and the profit on such fees is nominal. |
Electric utility segment
Electric utility segment | 6 Months Ended |
Jun. 30, 2017 | |
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 second quarters of 2017 and 2016 and six months ended June 30, 2017 and 2016 approximately $50 million , $44 million , $96 million and $87 million , respectively, of revenue taxes in “revenues” and in “taxes, other than income taxes” expense, in the unaudited condensed consolidated statements of income. 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 June 30, 2017 and December 31, 2016 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 six months ended June 30, 2017 consisted of $1.7 million of interest income received from the 2004 Debentures; $1.6 million of distributions to holders of the Trust Preferred Securities; and $50,000 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 June 30, 2017 , the Utilities had five power purchase agreements (PPAs) for firm capacity and other PPAs with independent power producers (IPPs) and Schedule Q providers (e.g., customers with cogeneration and/or power production facilities who buy power from or sell power to the Utilities), none of which are currently required to be consolidated as VIEs. 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 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 other IPPs the information necessary to make the determinations required under accounting standards for VIEs. In each year from 2005 to 2016, 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 Partners, L.P. (Kalaeloa) later agreed to provide the information pursuant to the amendments to its PPA (see below). During the negotiations of an amendment to the PPA with AES Hawaii, Inc. (AES Hawaii), management determined that Hawaiian Electric was not the primary beneficiary of AES Hawaii under the existing PPA and consolidation was not required (see below). 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 unaudited condensed consolidated financial statements. The consolidation of any significant IPP could have a material effect on the unaudited condensed 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. Pursuant to the current accounting standards for VIEs, Hawaiian Electric is deemed to have a variable interest in Kalaeloa and AES Hawaii by reason of the provisions of Hawaiian Electric’s PPA with Kalaeloa and AES Hawaii, respectively. However, management has concluded that Hawaiian Electric is not the primary beneficiary of Kalaeloa or AES Hawaii because Hawaiian Electric does not have the power to direct the activities that most significantly impact Kalaeloa’s and AES Hawaii’s economic performance nor the obligation to absorb Kalaeloa’s or AES Hawaii’s expected losses, if any, that could potentially be significant to Kalaeloa or AES Hawaii. Thus, Hawaiian Electric has not consolidated Kalaeloa or AES Hawaii in its unaudited condensed consolidated financial statements. Commitments and contingencies. Contingencies . The Utilities are 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, the Utilities cannot rule out the possibility that such outcomes could have a material effect on the results of operations or liquidity for a particular reporting period in the future. Power purchase agreements . As of June 30, 2017 , purchases from all IPPs were as follows: Three months ended June 30 Six months ended June 30 (in millions) 2017 2016 2017 2016 Kalaeloa $ 48 $ 36 $ 88 $ 65 AES Hawaii 35 36 64 74 HPOWER 16 17 33 33 Puna Geothermal Venture 10 5 18 12 HEP 10 4 17 15 Other IPPs 1 34 41 60 56 Total IPPs $ 153 $ 139 $ 280 $ 255 1 Includes wind power, solar power, feed-in tariff projects and other PPAs. 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 additives cost component 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. Hawaiian Electric and Kalaeloa are in negotiations to address the PPA term that ended on May 23, 2016. On August 1, 2016, Hawaiian Electric and Kalaeloa entered into an agreement that neither party will give written notice of termination of the Kalaeloa PPA prior to October 31, 2017. The PPA automatically extends on a month-to-month basis as long as the parties are still negotiating in good faith. The month-to-month term extensions shall end 60 days after either party notifies the other in writing that negotiations have terminated. AES Hawaii, Inc. Under a PPA entered into in March 1988, as amended (through Amendment No. 2) for a period of 30 years beginning September 1992, Hawaiian Electric agreed to purchase 180 MW of firm capacity from AES Hawaii. In August 2012, Hawaiian Electric filed an application with the PUC seeking an exemption from the PUC’s Competitive Bidding Framework to negotiate an amendment to the PPA to purchase 186 MW of firm capacity, and amend the energy pricing formula in the PPA. The PUC approved the exemption in April 2013, but Hawaiian Electric and AES Hawaii were not able to reach an agreement on the amendment. In June 2015, AES Hawaii filed an arbitration demand regarding a dispute about whether Hawaiian Electric was obligated to buy up to 9 MW of additional capacity based on a 1992 letter. Hawaiian Electric responded to the arbitration demand and in October 2015, AES Hawaii and Hawaiian Electric entered into a Settlement Agreement to stay the arbitration proceeding. The Settlement Agreement included certain conditions precedent which, if satisfied, would have released the parties from the claims under the arbitration proceeding. Among the conditions precedent was the successful negotiation and PUC approval of an amendment to the existing PPA. In November 2015, Hawaiian Electric entered into Amendment No. 3 for which PUC approval was requested and subsequently denied in January 2017. Approval of Amendment No. 3 would have satisfied the final condition for effectiveness of the Settlement Agreement and resolved AES Hawaii's claims. Following the PUC's decision, the parties agreed to extend the stay of the arbitration proceeding, while settlement discussions continue. Hu Honua Bioenergy, LLC. In May 2012, Hawaii Electric Light signed a PPA, which the PUC approved in December 2013, with Hu Honua Bioenergy, LLC (Hu Honua) for 21.5 MW of renewable, dispatchable firm capacity fueled by locally grown biomass from a facility on the island of Hawaii. Per the terms of the PPA, the Hu Honua plant was scheduled to be in service in 2016. However, Hu Honua encountered construction delays, failed to meet its obligations under the PPA and failed to provide adequate assurances that it could perform or had the financial means to perform. Hawaii Electric Light terminated the PPA on March 1, 2016. On November 30, 2016, Hu Honua filed a civil complaint in the United States District Court for the District of Hawaii that included claims purportedly arising out of the termination of Hu Honua’s PPA. On May 26, 2017, Hawaii Electric Light and Hu Honua entered into a settlement agreement that will settle all claims related to the termination of the original PPA. The settlement agreement was contingent on the PUC’s approval of an amended and restated PPA between Hawaii Electric Light and Hu Honua dated May 5, 2017. In July 2017, the PUC approved the amended and restated PPA. Hu Honua is expected to be on-line by the end of 2018. Utility projects . Many public utility projects require PUC approval and various permits from other governmental agencies. Difficulties in obtaining, or the inability to obtain, the necessary approvals or permits can result in significantly increased project costs or even cancellation of projects. In the event a project does not proceed, or if it becomes probable the PUC will disallow cost recovery for all or part of a project, or if PUC imposed caps on project costs are expected to be exceeded, project costs may need to be written off in amounts that could result in significant reductions in Hawaiian Electric’s consolidated net income. Enterprise Resource Planning/Enterprise Asset Management (ERP/EAM) Implementation Project. The Utilities submitted their Enterprise Information System Roadmap to the PUC in June 2014 and refiled an application for an ERP/EAM Implementation Project in July 2014 with an estimated cost of $82.4 million . In 2015, the PUC denied the request of the Utilities to defer the costs of the ERP software purchased in 2012 and these costs were written off in the third quarter of 2015. On August 11, 2016, the PUC approved the Utilities’ request to commence the ERP/EAM Implementation Project, subject to certain conditions, including a $77.6 million cap on cost recovery as well as a requirement that the Utilities pass onto customers a minimum of $244 million in savings associated with the system over its 12 -year service life. The decision and order (D&O) approved the deferral of certain project costs and allowed the accrual of allowance for funds used during construction (AFUDC), but limited the AFUDC rate to 1.75% . Pursuant to the D&O and subsequent orders, the Utilities are required to file a bottom-up, low-level analysis of the project’s benefits; performance metrics and tracking mechanism for passing the project’s benefits on to customers by September 2017; and monthly reports on the status and costs of the project. On March 31, 2017, the Utilities filed their proposed methods of passing on to customers the estimated monetary savings attributable to the project. These proposed methods continue to be reviewed by the PUC and Consumer Advocate. The ERP/EAM Implementation Project is on schedule. The project is expected to go live by October 1, 2018. As of June 30, 2017, the Project incurred costs of $14.0 million of which $2.5 million were charged to other operation and maintenance (O&M) expense, $1.1 million relate to capital costs and $10.4 million are deferred costs. Schofield Generating Station Project. In August 2012, the PUC approved a waiver from the competitive bidding framework to allow Hawaiian Electric to negotiate with the U.S. Army for the construction of a 50 MW utility owned and operated firm, renewable and dispatchable generation facility at Schofield Barracks. In September 2015, the PUC approved Hawaiian Electric’s application to expend $167 million for the project. In approving the project, the PUC placed a cost cap of $167 million for the project, stated 90% of the cap is allowed for cost recovery through cost recovery mechanisms other than base rates, and stated the $167 million cap will be adjusted downward due to any reduction in the cost of the engine contract due to a reduction in the foreign exchange rate. Hawaiian Electric was required to take all necessary steps to lock in the lowest possible exchange rate. On January 5, 2016, Hawaiian Electric executed window forward contracts, which lowered the cost of the engine contract by $9.7 million , resulting in a revised project cost cap of $157.3 million . Hawaiian Electric has received all of the major permits for the project, including a 35 year site lease from the U.S. Army. Construction of the facility began in October 2016, and the facility is expected to be placed in service in the second quarter of 2018. Project costs incurred as of June 30, 2017 amounted to $87.8 million . The project costs have been included for recovery in the 2017 test year rate case. West Loch PV Project. In July 2016, Hawaiian Electric announced plans to build, own and operate a utility-owned, grid-tied 20 -MW (ac) solar facility in conjunction with the Department of the Navy at a Navy/Air Force joint base. In June 2017, the PUC approved the expenditure of funds for the project, including Hawaiian Electric’s proposed project cost cap of $67 million and a performance guarantee to provide energy at 9.56 cents /KWH or less. Project costs incurred as of June 30, 2017 amounted to $0.4 million . In approving the project, the PUC agreed the project is eligible for recovery of costs offset by related net benefits under the Major Project Interim Recovery (MPIR) guidelines (see “Decoupling” section below for MPIR guidelines). The PUC established a procedural schedule for Hawaiian Electric to provide supplemental materials to support meeting the MPIR guidelines for recovery of costs accompanied by system performance guarantee and cost savings sharing mechanisms and for the Consumer Advocate to review and comment on the information filed. This is first instance in which the PUC is considering a request for recovery pursuant to the MPIR Guidelines. Hamakua Energy Partners, L.P. (HEP) Asset Purchase Agreement . Hawaii Electric Light has been purchasing up to 60 MW (net) of firm capacity from HEP under a PPA that expires on December 30, 2030. The HEP plant currently contributes about 23% of the island of Hawaii’s generating capacity. In December 2015, Hawaii Electric Light entered into an agreement, subject to PUC approval, to acquire the assets of HEP for approximately $84.5 million . On May 4, 2017, the PUC denied Hawaii Electric Light’s application for approval of the Asset Purchase Agreement (APA) on the grounds that customer benefits were not sufficiently demonstrated to justify the purchase and in July 2017, Hawaii Electric Light and HEP terminated the APA. Hawaiian Telcom . The Utilities each have separate agreements for the joint ownership and maintenance of utility poles with Hawaiian Telcom, Inc. (Hawaiian Telcom), the respective county or counties in which each utility operates and other third parties, such as the State of Hawaii. The agreements set forth various circumstances requiring pole removal/installation/replacement and the sharing of costs among the joint pole owners. The agreements allow for the cost of work done by one joint pole owner to be shared by the other joint pole owners based on the apportionment of costs in the agreements. The Utilities have maintained, replaced and installed the majority of the jointly-owned poles in each of the respective service territories, and have billed the other joint pole owners for their respective share of the costs. The counties and the State have been reimbursing the Utilities for their share of the costs. However, Hawaiian Telcom has been delinquent in reimbursing the Utilities for its share of the costs. Hawaiian Electric has initiated a dispute resolution process to collect the unpaid amounts from Hawaiian Telcom as specified by the joint pole agreement. For Hawaii Electric Light, the agreement does not specify an alternative dispute resolution process, and thus a complaint for payment was filed with the Circuit Court in June 2016. Maui Electric has not yet commenced any legal action to recover the delinquent amounts. As of June 30, 2017 , total receivables under the joint pole agreement, including interest, from Hawaiian Telcom are $22.1 million ( $14.8 million at Hawaiian Electric, $6.0 million at Hawaii Electric Light, and $1.3 million at Maui Electric). Management expects to prevail on these claims but has reserved for the accrued interest of $4.9 million on the receivables. 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. 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. The Utilities 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 effect, individually or in the aggregate, on Hawaiian Electric’s consolidated results of operations, financial condition or liquidity. 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 Environmental Protection Agency (EPA) has since identified environmental impacts in the subsurface soil at the Site. Although Maui Electric never operated at the Site or owned the Site property, after discussions with the EPA and the Hawaii Department of Health (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 environmental contamination. 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. Maui Electric has a reserve balance of $3.5 million as of June 30, 2017 , representing the probable and reasonably estimated cost to complete 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. Pearl Harbor sediment study . In July 2014, the U.S. Navy notified Hawaiian Electric of the Navy’s determination that Hawaiian Electric is a Potentially Responsible Party responsible for cleanup of PCB contamination in sediment in the area offshore of the Waiau Power Plant as part of the Pearl Harbor Superfund Site. The Navy has also requested that Hawaiian Electric reimburse the costs incurred by the Navy to investigate the area. The Navy has completed a remedial investigation and a feasibility study (FS) for the remediation of contaminated sediment at several locations in Pearl Harbor and issued its Final FS Report on June 29, 2015. On February 2, 2016, the Navy released the Proposed Plan for Pearl Harbor Sediment Remediation and Hawaiian Electric submitted comments. The extent of the contamination, the appropriate remedial measures to address it and Hawaiian Electric’s potential responsibility for any associated costs have not been determined. On March 23, 2015, Hawaiian Electric received a letter from the EPA requesting that Hawaiian Electric submit a work plan to assess potential sources and extent of PCB contamination onshore at the Waiau Power Plant. Hawaiian Electric submitted a sampling and analysis (SAP) work plan to the EPA and the DOH. Onshore sampling at the Waiau Power Plant was completed in two phases in December 2015 and June 2016. The extent of the onshore contamination, the appropriate remedial measures to address it and any associated costs have not yet been determined. As of June 30, 2017 , the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $4.9 million . The reserve represents the probable and reasonably estimable cost to complete the onshore and offshore investigations and the remediation of PCB contamination in the offshore sediment. The final remediation costs will depend on the results of the onshore investigation and assessment of potential source control requirements, as well as the further investigation of contaminated sediment offshore from the Waiau Power Plant. Regulatory proceedings 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 Utilities addressed these orders 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 directed each of Hawaiian Electric and Maui Electric to file their respective Power Supply Improvement Plans (PSIPs), which they did 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 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, including a Distributed Generation Interconnection Plan, which the Utilities 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 (DER) 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. The PUC has not yet opened new dockets to address the first and third topics above. To address DER, the second topic, the PUC opened an investigative proceeding on August 21, 2014 (see “DER Investigative Proceeding” below). 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 an integrated Demand Response (DR) Portfolio Plan that will enhance system operations and reduce costs to customers. The Utilities’ Plan was filed in July 2014. Subsequently, the Utilities submitted status updates and an update and supplemental report to the Plan. In July 2015, the PUC issued an order appointing a special adviser to guide, monitor and review the Utility’s Plan design and implementation. In December 2015, the Utilities filed applications with the PUC (1) for approval of their proposed DR Portfolio Tariff Structure, Reporting Schedule and Cost Recovery of Program Costs and (2) for approval to defer and recover certain computer software and software development costs for a DR Management System through the Renewable Energy Infrastructure Program (REIP) Surcharge. The Utilities filed an updated DR Portfolio Plan in February 2017. In May 2017, the Utilities filed their reply to the statements of position submitted by the other parties and are awaiting a PUC decision. In the DR Management System proceeding, the parties filed statements of position in December 2016 and are awaiting a PUC decision. 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. In August 2014, the Utilities filed proposed PSIPs with the PUC, as required by the PUC orders issued in April 2014. Updated PSIPs were filed in April 2016, pursuant to an order issued by the PUC in November 2015 which included the PUC’s observations and concerns, and comments provided by parties and participants. The Updated PSIPs provided plans to achieve 100% renewable energy using a diverse mix of energy resources by 2045. Under these plans, the Utilities support sustainable growth of private rooftop solar, expand use of energy storage systems, empower customers by developing smart grids and offer new products and services to customers (e.g., community solar, microgrids and voluntary “demand response” programs). In December 2016, the Utilities filed a PSIP Update Report as ordered by the PUC. The updated plans describe greater and faster expansion of the Utilities’ renewable energy portfolio than in the plans filed in April 2016, and emphasize work that is in progress or planned over the next five years on each of the five islands the Utilities serve. The plans include the continued growth of private rooftop solar and describe the grid and generation modernization work needed to reliably integrate an estimated total of 165,000 private systems by 2030, more than double today’s total of 79,000 , and additional grid-scale renewable energy resources. On July 14, 2017, the PUC accepted the Utilities’ PSIP December 2016 Update Report and closed the proceeding. In its order, the PUC provided guidance regarding the implementation of the Utilities’ near-term action plan and future planning activities, requiring the Utilities to file a report that details an updated resource planning approach and schedule by March 1, 2018. The PUC order stated that it intends to use the PSIPs in conjunction with its evaluation of specific filings for approval of capital and other projects. DER investigative proceedin g. In March 2015, the PUC issued an order to address DER issues. On June 29, 2015, the Utilities submitted their final Statement of Position in the DER proceeding, which included: (1) new pricing provisions for future private rooftop photovoltaic (PV) systems, (2) technical standards for advanced inverters, (3) new options for customers including battery-equipped private rooftop PV systems, (4) a pilot time-of-use rate, (5) an improved method of calculating the amount of private rooftop PV that can be safely installed, and (6) a streamlined and standardized PV application process. On October 12, 2015, the PUC issued a D&O establishing DER reforms that: (1) promote rapid adoption of the next generation of solar PV and other distributed energy technologies; (2) encourage more competitive pricing of distributed energy resource systems; (3) lower overall energy supply costs for all customers; and (4) help to manage DER in terms of each island’s limited grid capacity. The D&O capped the Utilities Net Energy Metering (NEM) programs at “existing” levels (i.e., for existing NEM customers and customers who already applied and were waiting for approval), closed their NEM programs to new participants, and approved new options for customers to interconnect DER to their electric grids, including Self Supply and Grid Supply tariff options. The PUC placed caps on the availability of the Grid Supply program. The Self Supply Program is designed for customers who do not export to the grid. In June 2016, the PUC approved the Utilities Advanced Inverter Test Plan and the Utilities submitted the results of the testing to the PUC. Pursuant to a PUC order, in October 2016, the Utilities submitted tariffs for a Residential Interim Time of Use program, which is limited to 2 years and 5,000 customers. The primary objective is to encourage more efficient use of the electric system and enable more cost-effective integration of renewable |
Bank segment
Bank segment | 6 Months Ended |
Jun. 30, 2017 | |
Bank subsidiary | |
Bank segment | Bank segment Selected financial information American Savings Bank, F.S.B. Statements of Income Data (unaudited) Three months ended June 30 Six months ended June 30 (in thousands) 2017 2016 2017 2016 Interest and dividend income Interest and fees on loans $ 52,317 $ 49,690 $ 103,059 $ 98,127 Interest and dividends on investment securities 6,763 4,443 13,743 9,460 Total interest and dividend income 59,080 54,133 116,802 107,587 Interest expense Interest on deposit liabilities 2,311 1,691 4,414 3,283 Interest on other borrowings 824 1,467 1,640 2,952 Total interest expense 3,135 3,158 6,054 6,235 Net interest income 55,945 50,975 110,748 101,352 Provision for loan losses 2,834 4,753 6,741 9,519 Net interest income after provision for loan losses 53,111 46,222 104,007 91,833 Noninterest income Fees from other financial services 5,810 5,701 11,420 11,200 Fee income on deposit liabilities 5,565 5,262 10,993 10,418 Fee income on other financial products 1,971 2,207 3,837 4,412 Bank-owned life insurance 1,925 1,006 2,908 2,004 Mortgage banking income 587 1,554 1,376 2,749 Gains on sale of investment securities, net — 598 — 598 Other income, net 391 288 849 621 Total noninterest income 16,249 16,616 31,383 32,002 Noninterest expense Compensation and employee benefits 24,742 21,919 47,979 44,353 Occupancy 4,185 4,115 8,339 8,253 Data processing 3,207 3,277 6,487 6,449 Services 2,766 2,755 5,126 5,666 Equipment 1,771 1,771 3,519 3,434 Office supplies, printing and postage 1,527 1,583 3,062 2,948 Marketing 839 899 1,356 1,760 FDIC insurance 822 913 1,550 1,797 Other expense 4,705 5,382 9,016 9,357 Total noninterest expense 44,564 42,614 86,434 84,017 Income before income taxes 24,796 20,224 48,956 39,818 Income taxes 8,063 6,939 16,410 13,860 Net income $ 16,733 $ 13,285 $ 32,546 $ 25,958 American Savings Bank, F.S.B. Statements of Comprehensive Income Data (unaudited) Three months ended June 30 Six months ended June 30 (in thousands) 2017 2016 2017 2016 Net income $ 16,733 $ 13,285 $ 32,546 $ 25,958 Other comprehensive income, net of taxes: Net unrealized gains on available-for-sale investment securities: Net unrealized gains on available-for-sale investment securities arising during the period, net of taxes of $1,334, $1,925, $1,482 and $6,830, respectively 2,021 2,915 2,244 10,344 Reclassification adjustment for net realized gains included in net income, net of taxes of nil, $238, nil and $238, respectively — (360 ) — (360 ) Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $133, $140, $537 and $277, respectively 202 211 814 419 Other comprehensive income, net of taxes 2,223 2,766 3,058 10,403 Comprehensive income $ 18,956 $ 16,051 $ 35,604 $ 36,361 American Savings Bank, F.S.B. Balance Sheets Data (unaudited) (in thousands) June 30, 2017 December 31, 2016 Assets Cash and due from banks $ 128,609 $ 137,083 Interest-bearing deposits 37,049 52,128 Restricted cash — 1,764 Available-for-sale investment securities, at fair value 1,302,886 1,105,182 Stock in Federal Home Loan Bank, at cost 11,706 11,218 Loans receivable held for investment 4,744,634 4,738,693 Allowance for loan losses (56,356 ) (55,533 ) Net loans 4,688,278 4,683,160 Loans held for sale, at lower of cost or fair value 5,261 18,817 Other 354,898 329,815 Goodwill 82,190 82,190 Total assets $ 6,610,877 $ 6,421,357 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 1,694,150 $ 1,639,051 Deposit liabilities—interest-bearing 4,030,236 3,909,878 Other borrowings 188,130 192,618 Other 101,974 101,635 Total liabilities 6,014,490 5,843,182 Commitments and contingencies Common stock 1 1 Additional paid in capital 344,062 342,704 Retained earnings 271,739 257,943 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (5,687 ) $ (7,931 ) Retirement benefit plans (13,728 ) (19,415 ) (14,542 ) (22,473 ) Total shareholder’s equity 596,387 578,175 Total liabilities and shareholder’s equity $ 6,610,877 $ 6,421,357 Other assets Bank-owned life insurance $ 146,122 $ 143,197 Premises and equipment, net 108,158 90,570 Prepaid expenses 4,632 3,348 Accrued interest receivable 16,949 16,824 Mortgage-servicing rights 9,181 9,373 Low-income housing equity investments 48,596 47,081 Real estate acquired in settlement of loans, net 1,554 1,189 Other 19,706 18,233 $ 354,898 $ 329,815 Other liabilities Accrued expenses $ 34,451 $ 36,754 Federal and state income taxes payable 6,336 4,728 Cashier’s checks 24,191 24,156 Advance payments by borrowers 10,334 10,335 Other 26,662 25,662 $ 101,974 $ 101,635 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. Other borrowings consisted of securities sold under agreements to repurchase and advances from the Federal Home Loan Bank (FHLB) of $88 million and $100 million , respectively, as of June 30, 2017 and $93 million and $100 million , respectively, as of December 31, 2016 . Available-for-sale investment securities. The major components of investment securities were as follows: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Gross unrealized losses Less than 12 months 12 months or longer (dollars in thousands) Number of issues Fair value Amount Number of issues Fair value Amount June 30, 2017 Available-for-sale U.S. Treasury and federal agency obligations $ 187,289 $ 947 $ (1,653 ) $ 186,583 16 $ 104,417 $ (1,532 ) 1 $ 3,186 $ (121 ) Mortgage-related securities- FNMA, FHLMC and GNMA 1,109,613 2,202 (10,939 ) 1,100,876 98 759,643 (9,658 ) 13 43,296 (1,281 ) Mortgage revenue bond 15,427 — — 15,427 — — — — — — $ 1,312,329 $ 3,149 $ (12,592 ) $ 1,302,886 114 $ 864,060 $ (11,190 ) 14 $ 46,482 $ (1,402 ) December 31, 2016 Available-for-sale U.S. Treasury and federal agency obligations $ 193,515 $ 920 $ (2,154 ) $ 192,281 18 $ 123,475 $ (2,010 ) 1 $ 3,485 $ (144 ) Mortgage-related securities- FNMA, FHLMC and GNMA 909,408 1,742 (13,676 ) 897,474 88 709,655 (12,143 ) 13 47,485 (1,533 ) Mortgage revenue bond 15,427 — — 15,427 — — — — — — $ 1,118,350 $ 2,662 $ (15,830 ) $ 1,105,182 106 $ 833,130 $ (14,153 ) 14 $ 50,970 $ (1,677 ) ASB does not believe that the investment securities that were in an unrealized loss position at June 30, 2017 , represent an other-than-temporary impairment (OTTI). Total gross unrealized losses were primarily attributable to rising interest rates relative to when the investment securities were purchased and not due to the credit quality of the investment securities. The contractual cash flows of the U.S. Treasury, federal agency obligations and mortgage-related securities are backed by the full faith and credit guaranty of the United States government or an agency of the government. ASB does not intend to sell the securities before the recovery of its amortized cost basis and there have been no adverse changes in the timing of the contractual cash flows for the securities. ASB did not recognize OTTI for the quarters and six month periods ended June 30, 2017 and 2016. U.S. Treasury, federal agency obligations, and the mortgage revenue bond have contractual terms to maturity. Mortgage-related securities have contractual terms to maturity, but require periodic payments to reduce principal. In addition, expected maturities will differ from contractual maturities because borrowers have the right to prepay the underlying mortgages. The contractual maturities of available-for-sale investment securities were as follows: June 30, 2017 Amortized cost Fair value (in thousands) Due in one year or less $ 9,992 $ 9,993 Due after one year through five years 77,151 77,307 Due after five years through ten years 85,724 85,258 Due after ten years 29,849 29,452 202,716 202,010 Mortgage-related securities-FNMA, FHLMC and GNMA 1,109,613 1,100,876 Total available-for-sale securities $ 1,312,329 $ 1,302,886 Proceeds and gross realized gains from the sale of available-for-sale investment securities were $16.4 million and $0.6 million , respectively, for the three and six months ended June 30, 2016. Gross realized losses recognized during the three and six months ended June 30, 2016 were no t material. No available-for-sale investment securities were sold during the three and six month periods ended June 30, 2017. Loans receivable. The components of loans receivable were summarized as follows: June 30, 2017 December 31, 2016 (in thousands) Real estate: Residential 1-4 family $ 2,061,549 $ 2,048,051 Commercial real estate 808,900 800,395 Home equity line of credit 883,135 863,163 Residential land 16,009 18,889 Commercial construction 116,548 126,768 Residential construction 10,759 16,080 Total real estate 3,896,900 3,873,346 Commercial 649,657 692,051 Consumer 201,199 178,222 Total loans 4,747,756 4,743,619 Less: Deferred fees and discounts (3,122 ) (4,926 ) Allowance for loan losses (56,356 ) (55,533 ) Total loans, net $ 4,688,278 $ 4,683,160 ASB's policy is to require private mortgage insurance on all real estate loans when the loan-to-value ratio of the property exceeds 80% of the lower of the appraised value or purchase price at origination. For non-owner occupied residential properties, the loan-to-value ratio may not exceed 80% of the lower of the appraised value or purchase price at origination. ASB is subject to the risk that the insurance company cannot satisfy the bank's claim on policies. Allowance for loan losses. The allowance for loan losses (balances and changes) and financing receivables were as follows: (in thousands) Residential 1-4 family Commercial real estate Home Residential land Commercial construction Residential construction Commercial loans Consumer loans Unallo-cated Total Three months ended June 30, 2017 Allowance for loan losses: Beginning balance $ 2,781 $ 16,504 $ 5,417 $ 1,479 $ 7,257 $ 11 $ 14,902 $ 7,646 $ — $ 55,997 Charge-offs — — — (92 ) — — (752 ) (2,390 ) — (3,234 ) Recoveries 49 — 39 15 — — 299 357 — 759 Provision 300 2,336 71 (138 ) (2,551 ) (2 ) 103 2,715 — 2,834 Ending balance $ 3,130 $ 18,840 $ 5,527 $ 1,264 $ 4,706 $ 9 $ 14,552 $ 8,328 $ — $ 56,356 Three months ended June 30, 2016 Allowance for loan losses: Beginning balance $ 4,593 $ 11,806 $ 7,172 $ 1,740 $ 6,164 $ 12 $ 16,991 $ 3,848 $ — $ 52,326 Charge-offs (15 ) — — — — — (962 ) (1,528 ) — (2,505 ) Recoveries 35 — 16 16 — — 425 265 — 757 Provision (229 ) 1,755 648 (67 ) 829 — 631 1,186 — 4,753 Ending balance $ 4,384 $ 13,561 $ 7,836 $ 1,689 $ 6,993 $ 12 $ 17,085 $ 3,771 $ — $ 55,331 Six months ended June 30, 2017 Allowance for loan losses: Beginning balance $ 2,873 $ 16,004 $ 5,039 $ 1,738 $ 6,449 $ 12 $ 16,618 $ 6,800 $ — $ 55,533 Charge-offs (6 ) — (14 ) (92 ) — — (2,262 ) (5,200 ) — (7,574 ) Recoveries 58 — 130 218 — — 596 654 — 1,656 Provision 205 2,836 372 (600 ) (1,743 ) (3 ) (400 ) 6,074 — 6,741 Ending balance $ 3,130 $ 18,840 $ 5,527 $ 1,264 $ 4,706 $ 9 $ 14,552 $ 8,328 $ — $ 56,356 June 30, 2017 Ending balance: individually evaluated for impairment $ 1,332 $ 73 $ 275 $ 480 $ — $ — $ 939 $ 30 $ 3,129 Ending balance: collectively evaluated for impairment $ 1,798 $ 18,767 $ 5,252 $ 784 $ 4,706 $ 9 $ 13,613 $ 8,298 $ — $ 53,227 Financing Receivables: Ending balance $ 2,061,549 $ 808,900 $ 883,135 $ 16,009 $ 116,548 $ 10,759 $ 649,657 $ 201,199 $ 4,747,756 Ending balance: individually evaluated for impairment $ 19,188 $ 1,289 $ 6,684 $ 2,589 $ — $ — $ 4,283 $ 68 $ 34,101 Ending balance: collectively evaluated for impairment $ 2,042,361 $ 807,611 $ 876,451 $ 13,420 $ 116,548 $ 10,759 $ 645,374 $ 201,131 $ 4,713,655 Six months ended June 30, 2016 Allowance for loan losses: Beginning balance $ 4,186 $ 11,342 $ 7,260 $ 1,671 $ 4,461 $ 13 $ 17,208 $ 3,897 $ — $ 50,038 Charge-offs (60 ) — — — — — (2,305 ) (3,098 ) — (5,463 ) Recoveries 52 — 31 119 — — 560 475 — 1,237 Provision 206 2,219 545 (101 ) 2,532 (1 ) 1,622 2,497 — 9,519 Ending balance $ 4,384 $ 13,561 $ 7,836 $ 1,689 $ 6,993 $ 12 $ 17,085 $ 3,771 $ — $ 55,331 December 31, 2016 Ending balance: individually evaluated for impairment $ 1,352 $ 80 $ 215 $ 789 $ — $ — $ 1,641 $ 6 $ 4,083 Ending balance: collectively evaluated for impairment $ 1,521 $ 15,924 $ 4,824 $ 949 $ 6,449 $ 12 $ 14,977 $ 6,794 $ — $ 51,450 Financing Receivables: Ending balance $ 2,048,051 $ 800,395 $ 863,163 $ 18,889 $ 126,768 $ 16,080 $ 692,051 $ 178,222 $ 4,743,619 Ending balance: individually evaluated for impairment $ 19,854 $ 1,569 $ 6,158 $ 3,629 $ — $ — $ 20,539 $ 10 $ 51,759 Ending balance: collectively evaluated for impairment $ 2,028,197 $ 798,826 $ 857,005 $ 15,260 $ 126,768 $ 16,080 $ 671,512 $ 178,212 $ 4,691,860 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, 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 probability of default model rating, the loss given default 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 and has such little value that its continuance as a bankable asset is not warranted. The credit risk profile by internally assigned grade for loans was as follows: June 30, 2017 December 31, 2016 (in thousands) Commercial real estate Commercial construction Commercial Commercial real estate Commercial construction Commercial Grade: Pass $ 660,015 $ 92,069 $ 602,903 $ 701,657 $ 102,955 $ 614,139 Special mention 95,656 22,500 19,429 65,541 — 25,229 Substandard 53,229 1,979 27,325 33,197 23,813 52,683 Doubtful — — — — — — Loss — — — — — — Total $ 808,900 $ 116,548 $ 649,657 $ 800,395 $ 126,768 $ 692,051 The credit risk profile based on payment activity for loans was as follows: (in thousands) 30-59 days past due 60-89 days past due Greater than 90 days Total past due Current Total financing receivables Recorded investment> 90 days and accruing June 30, 2017 Real estate: Residential 1-4 family $ 2,308 $ 2,694 $ 5,411 $ 10,413 $ 2,051,136 $ 2,061,549 $ — Commercial real estate — — — — 808,900 808,900 — Home equity line of credit 502 494 1,516 2,512 880,623 883,135 — Residential land — — 305 305 15,704 16,009 — Commercial construction — — — — 116,548 116,548 — Residential construction — — — — 10,759 10,759 — Commercial 1,486 614 1,096 3,196 646,461 649,657 — Consumer 2,266 1,305 863 4,434 196,765 201,199 — Total loans $ 6,562 $ 5,107 $ 9,191 $ 20,860 $ 4,726,896 $ 4,747,756 $ — December 31, 2016 Real estate: Residential 1-4 family $ 5,467 $ 2,338 $ 3,505 $ 11,310 $ 2,036,741 $ 2,048,051 $ — Commercial real estate 2,416 — — 2,416 797,979 800,395 — Home equity line of credit 1,263 381 1,342 2,986 860,177 863,163 — Residential land — — 255 255 18,634 18,889 — Commercial construction — — — — 126,768 126,768 — Residential construction — — — — 16,080 16,080 — Commercial 413 510 1,303 2,226 689,825 692,051 — Consumer 1,945 1,001 963 3,909 174,313 178,222 — Total loans $ 11,504 $ 4,230 $ 7,368 $ 23,102 $ 4,720,517 $ 4,743,619 $ — The credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due and TDR loans was as follows: (in thousands) June 30, 2017 December 31, 2016 Real estate: Residential 1-4 family $ 12,270 $ 11,154 Commercial real estate — 223 Home equity line of credit 4,306 3,080 Residential land 915 878 Commercial construction — — Residential construction — — Commercial 1,972 6,708 Consumer 1,501 1,282 Total nonaccrual loans $ 20,964 $ 23,325 Real estate: Residential 1-4 family $ — $ — Commercial real estate — — Home equity line of credit — — Residential land — — Commercial construction — — Residential construction — — Commercial — — Consumer — — Total accruing loans 90 days or more past due $ — $ — Real estate: Residential 1-4 family $ 13,112 $ 14,450 Commercial real estate 1,289 1,346 Home equity line of credit 4,548 4,934 Residential land 1,674 2,751 Commercial construction — — Residential construction — — Commercial 2,692 14,146 Consumer 68 10 Total troubled debt restructured loans not included above $ 23,383 $ 37,637 The total carrying amount and the total unpaid principal balance of impaired loans were as follows: June 30, 2017 Three months ended June 30, 2017 Six months ended June 30, 2017 (in thousands) Recorded investment Unpaid principal balance Related Allowance Average recorded investment Interest income recognized* Average recorded investment Interest income recognized* With no related allowance recorded Real estate: Residential 1-4 family $ 9,364 $ 9,963 $ — $ 9,304 $ 76 $ 9,429 $ 160 Commercial real estate — — — 143 11 182 11 Home equity line of credit 2,287 2,707 — 2,401 51 2,203 65 Residential land 1,249 1,788 — 1,075 8 1,016 34 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 1,592 4,267 — 1,949 2 3,428 8 Consumer — — — 1 — — — $ 14,492 $ 18,725 $ — $ 14,873 $ 148 $ 16,258 $ 278 With an allowance recorded Real estate: Residential 1-4 family $ 9,824 $ 10,027 $ 1,332 $ 10,054 $ 117 $ 10,051 $ 236 Commercial real estate 1,289 1,289 73 1,292 14 1,296 28 Home equity line of credit 4,397 4,425 275 4,372 47 4,467 96 Residential land 1,340 1,340 480 1,532 24 1,804 61 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 2,691 2,691 939 2,562 68 4,915 469 Consumer 68 68 30 68 1 49 1 $ 19,609 $ 19,840 $ 3,129 $ 19,880 $ 271 $ 22,582 $ 891 Total Real estate: Residential 1-4 family $ 19,188 $ 19,990 $ 1,332 $ 19,358 $ 193 $ 19,480 $ 396 Commercial real estate 1,289 1,289 73 1,435 25 1,478 39 Home equity line of credit 6,684 7,132 275 6,773 98 6,670 161 Residential land 2,589 3,128 480 2,607 32 2,820 95 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 4,283 6,958 939 4,511 70 8,343 477 Consumer 68 68 30 69 1 49 1 $ 34,101 $ 38,565 $ 3,129 $ 34,753 $ 419 $ 38,840 $ 1,169 December 31, 2016 Three months ended June 30, 2016 Six months ended June 30, 2016 (in thousands) Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized* Average recorded investment Interest income recognized* With no related allowance recorded Real estate: Residential 1-4 family $ 9,571 $ 10,400 $ — $ 10,672 $ 152 $ 10,532 $ 203 Commercial real estate 223 228 — 1,152 — 1,163 — Home equity line of credit 1,500 1,900 — 1,038 9 943 9 Residential land 1,218 1,803 — 1,484 15 1,537 31 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 6,299 8,869 — 8,369 7 5,818 13 Consumer — — — — — — — $ 18,811 $ 23,200 $ — $ 22,715 $ 183 $ 19,993 $ 256 With an allowance recorded Real estate: Residential 1-4 family $ 10,283 $ 10,486 $ 1,352 $ 11,982 $ 115 $ 12,000 $ 237 Commercial real estate 1,346 1,346 80 2,519 — 1,686 — Home equity line of credit 4,658 4,712 215 3,299 28 3,122 55 Residential land 2,411 2,411 789 2,977 54 3,177 121 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 14,240 14,240 1,641 16,821 180 16,896 210 Consumer 10 10 6 12 — 12 — $ 32,948 $ 33,205 $ 4,083 $ 37,610 $ 377 $ 36,893 $ 623 Total Real estate: Residential 1-4 family $ 19,854 $ 20,886 $ 1,352 $ 22,654 $ 267 $ 22,532 $ 440 Commercial real estate 1,569 1,574 80 3,671 — 2,849 — Home equity line of credit 6,158 6,612 215 4,337 37 4,065 64 Residential land 3,629 4,214 789 4,461 69 4,714 152 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 20,539 23,109 1,641 25,190 187 22,714 223 Consumer 10 10 6 12 — 12 — $ 51,759 $ 56,405 $ 4,083 $ 60,325 $ 560 $ 56,886 $ 879 * 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 collectibility 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 or reduction 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 cost 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 during the second quarters and first six months of 2017 and 2016 and the impact on the allowance for loan losses were as follows: Three months ended June 30, 2017 Six months ended June 30, 2017 Number of contracts Outstanding recorded investment 1 Net increase in allowance Number of contracts Outstanding recorded investment 1 Net increase in allowance (dollars in thousands) Pre-modification Post-modification (as of period end) Pre-modification Post-modification (as of period end) Troubled debt restructurings Real estate: Residential 1-4 family 2 $ 360 $ 360 $ — 5 $ 872 $ 880 $ 45 Commercial real estate — — — — — — — — Home equity line of credit 5 298 298 59 13 524 510 93 Residential land — — — — — — — — Commercial construction — — — — — — — — Residential construction — — — — — — — — Commercial — — — — 1 342 342 — Consumer — — — — 1 59 59 27 7 $ 658 $ 658 $ 59 20 $ 1,797 $ 1,791 $ 165 Three months ended June 30, 2016 Six months ended June 30, 2016 Number of contracts Outstanding recorded 1 Net increase in allowance Number of contracts Outstanding recorded 1 Net increase in allowance (dollars in thousands) Pre-modification Post-modification (as of period end) Pre-modification Post-modification (as of period end) Troubled debt restructurings Real estate: Residential 1-4 family 5 $ 891 $ 885 $ 98 9 $ 1,988 $ 2,100 $ 259 Commercial real estate — — — — — — — — Home equity line of credit 8 768 768 181 18 1,437 1,437 255 Residential land 1 120 121 — 1 120 121 — Commercial construction — — — — — — — — Residential construction — — — — — — — — Commercial 5 457 457 145 8 16,657 16,657 670 Consumer — — — — — — — — 19 $ 2,236 $ 2,231 $ 424 36 $ 20,202 $ 20,315 $ 1,184 1 The reported balances include loans that became TDR during the period, and were fully paid-off, charged-off, or sold prior to period end. Loans modified in TDRs that experienced a payment default of 90 days or more during the second quarters and first six months of 2017 and 2016, and for which the payment of default occurred within one year of the modification, were as follows: Three months ended June 30, 2017 Six months ended June 30, 2017 (dollars in thousands) Number of contracts Recorded investment Number of contracts Recorded investment Troubled debt restructurings that subsequently defaulted Real estate: Residential 1-4 family 1 $ 222 2 $ 523 Commercial real estate — — — — Home equity line of credit — — — — Residential land — — — — Commercial construction — — — — Residential construction — — — — Commercial — — — — Consumer — — — — 1 $ 222 2 $ 523 Three months ended June 30, 2016 Six months ended June 30, 2016 (dollars in thousands) Number of contracts Recorded investment Number of contracts Recorded investment Troubled debt restructurings that Real estate: Residential 1-4 family — $ — 1 $ 488 Commercial real estate — — — — Home equity line of credit — — — — Residential land — — — — Commercial construction — — — — Residential construction — — — — Commercial 1 26 1 26 Consumer — — — — 1 $ 26 2 $ 514 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. Commitments to lend additional funds to borrowers whose loan terms have been modified in a TDR totaled nil and $2.6 million at June 30, 2017 and December 31, 2016, respectively. The Company had $4.6 million and $3.6 million of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure at June 30, 2017 and December 31, 2016, respectively. Mortgage servicing rights . In its mortgage banking business, ASB sells residential mortgage loans to government-sponsored entities and other parties, who may issue securities backed by pools of such loans. ASB retains no beneficial interests in these loans other than the servicing rights of certain loans sold. ASB received proceeds from the sale of residential mortgages of $39.3 million and $58.1 million for the three months ended June 30, 2017 and 2016 and $79.9 million and $98.5 million for the six months ended June 30, 2017 and 2016, respectively, and recognized gains on such sales of $0.6 million and $1.5 million for the three months ended June 30, 2017 and 2016 and $1.4 million and $2.7 million for the six months ended June 30, 2017 and 2016, respectively. There were no repurchased mortgage loans for the three and six months ended June 30, 2017 and 2016. The repurchase reserve was $0.1 million as of June 30, 2017 and 2016. Mortgage servicing fees, a component of other income, net, were $0.7 million for both the three months ended June 30, 2017 and 2016 and $1.5 million and $1.4 million for the six months ended June 30, 2017 and 2016, respectively. Changes in the carrying value of mortgage servicing rights were as follows: (in thousands) Gross 1 Accumulated amortization 1 Valuation allowance Net June 30, 2017 $ 18,069 $ (8,888 ) $ — $ 9,181 December 31, 2016 17,271 (7,898 ) — 9,373 1 Reflects the impact of loans paid in full. Changes related to mortgage servicing rights were as follows: Three months ended June 30 Six months ended June 30 (in thousands) 2017 2016 2017 2016 Mortgage servicing rights Beginning balance $ 9,294 $ 8,857 $ 9,373 $ 8,884 Amount capitalized 362 665 798 1,120 Amortization (475 ) (506 ) (990 ) (988 ) Other-than-temporary impairment — — — — Carrying amount before valuation allowance 9,181 9,016 9,181 9,016 Valuation allowance for mortgage servicing rights Beginning balance — — — — Provision (recovery) — — — — Other-than-temporary impairment — — — — Ending balance — — — — Net carrying value of mortgage servicing rights $ 9,181 $ 9,016 $ 9,181 $ 9,016 ASB capitalizes mortgage servicing rights acquired through either the purchase or upon the sale of mortgage loans with servicing rights retained. On a monthly basis, ASB compares the net carrying value of the mortgage servicing rights to its fair value to determine if there are any changes to the valuation allowance and/or other-than-temporary impairment for the mortgage servicing rights. ASB’s MSRs are stratified based on predominant risk characteristics of the underlying loans including loan type such as fixed-rate 15 and 30 year mortgages and note rate in bands of 50 to 100 basis points. For each stratum, fair value is calculated by discounting expected net income streams using discount rates that reflect industry pricing for similar assets. Changes in mortgage interest rates impact the value of ASB’s mortgage servicing rights. Rising interest rates typically result in slower prepayment speeds in the loans being serviced for others, which increases the value of mortgage servicing rights, whereas declining interest rates typically result in faster prepayment speeds which decrease the value of mortgage servicing rights and increase the amortization of the mortgage servicing rights. 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. ASB uses a present value cash flow model using techniques described above to estimate the fair value of MSRs. 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 “Revenues - bank” in the consolidated statements of 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 ASB’s mortgage servicing rights used in the impairment analysis were as follows: (dollars in thousands) June 30, 2017 December 31, 2016 Unpaid principal balance $ 1,208,404 $ 1,188,380 Weighted average note rate 3.95 % 3.96 % Weighted average discount rate 10.0 % 9.4 % Weighted average prepayment speed 8.8 % 8.5 % The sensitivity analysis of fair value of MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows: (dollars in thousands) June 30, 2017 December 31, 2016 Prepayment rate: 25 basis points adverse rate change $ (939 ) $ (567 ) 50 basis points adverse rate change (2,048 ) (1,154 ) Discount rate: 25 basis points adverse rate change (115 ) (128 ) 50 basis points adverse rate change (227 ) (254 ) The effect of a variation in certain assumptions on fair value is calculated without changing any other assumptions. This analysis |
Credit agreements and long-term
Credit agreements and long-term debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Credit agreements and long-term debt | Credit agreements and long-term debt Credit agreements. HEI and Hawaiian Electric each entered into a separate agreement with a syndicate of eight financial institutions (the HEI Facility and Hawaiian Electric Facility, respectively, and together, the Facilities), effective July 3, 2017, to amend and restate their respective previously existing revolving unsecured credit agreements. The $150 million HEI Facility extended the term of the facility to June 30, 2022. The $200 million Hawaiian Electric Facility has an initial term that expires on June 29, 2018, but its term will extend to June 30, 2022, if and when approved by the PUC during the initial term. As of June 30, 2017 and December 31, 2016, no amounts were outstanding under the previously existing facilities. The Facilities will be maintained to support each company’s respective short-term commercial paper program, but may be drawn on to meet each company’s respective working capital needs and general corporate purposes. Changes in long-term debt. On June 29, 2017, the Department of Budget and Finance of the State of Hawaii (Department) for the benefit of the Utilities, issued, at par: Refunding Series 2017A Special Purpose Revenue Bonds Refunding Series 2017B Special Purpose Revenue Bonds Aggregate principal amount $125 million $140 million Fixed coupon interest rate 3.10% 4.00% Maturity date May 1, 2026 March 1, 2037 Department loaned the proceeds to: Hawaiian Electric $62 million $100 million Hawaii Electric Light $8 million $20 million Maui Electric $55 million $20 million Proceeds from the sale were applied to redeem at par bonds previously issued by the Department for the benefit of the Utilities: Refunding Series 2007B Special Purpose Revenue Bonds Series 2007A Special Purpose Revenue Bonds Aggregate principal amount $125 million $140 million Fixed coupon interest rate 4.60% 4.65% Maturity date May 1, 2026 March 1, 2037 |
Shareholders' equity
Shareholders' equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Shareholders' equity | Shareholders’ equity Accumulated other comprehensive income/(loss) . 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 gains (losses) on derivatives Retirement benefit plans AOCI Unrealized gains (losses) on derivatives Retirement benefit plans AOCI Balance, December 31, 2016 $ (7,931 ) $ (454 ) $ (24,744 ) $ (33,129 ) $ (454 ) $ 132 $ (322 ) Current period other comprehensive income 2,244 454 657 3,355 454 45 499 Balance, June 30, 2017 $ (5,687 ) $ — $ (24,087 ) $ (29,774 ) $ — $ 177 $ 177 Balance, December 31, 2015 $ (1,872 ) $ (54 ) $ (24,336 ) $ (26,262 ) $ — $ 925 $ 925 Current period other comprehensive income 9,984 311 613 10,908 257 4 261 Balance, June 30, 2016 $ 8,112 $ 257 $ (23,723 ) $ (15,354 ) $ 257 $ 929 $ 1,186 Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Amount reclassified from AOCI Three months ended June 30 Six months ended June 30 Affected line item in the (in thousands) 2017 2016 2017 2016 Statements of Income / Balance Sheets HEI consolidated Net realized gains on securities included in net income $ — $ (360 ) $ — $ (360 ) Revenues-bank (net gains on sales of securities) Derivatives qualifying as cash flow hedges: Window forward contracts — — 454 — Construction in progress-electric utilities (losses on window forward contracts - see Note 3 for additional details) Interest rate contracts (settled in 2011) — — — 54 Interest expense Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 3,930 3,698 7,851 7,236 See Note 7 for additional details Impact of D&Os of the PUC included in regulatory assets (3,581 ) (3,401 ) (7,194 ) (6,623 ) See Note 7 for additional details Total reclassifications $ 349 $ (63 ) $ 1,111 $ 307 Hawaiian Electric consolidated Derivatives qualifying as cash flow hedges: Window forward contracts $ — $ — $ 454 $ — Construction in progress (losses on window forward contracts - see Note 3 for additional details) Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 3,621 3,391 7,239 6,627 See Note 7 for additional details Impact of D&Os of the PUC included in regulatory assets (3,581 ) (3,401 ) (7,194 ) (6,623 ) See Note 7 for additional details Total reclassifications $ 40 $ (10 ) $ 499 $ 4 |
Retirement benefits
Retirement benefits | 6 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement benefits | Retirement benefits Defined benefit pension and other postretirement benefit plans information. For the first six months of 2017 , the Company contributed $33 million (nearly all by the Utilities) to its pension and other postretirement benefit plans, compared to $33 million ( $32 million by the Utilities) in the first six months of 2016 . The Company’s current estimate of contributions to its pension and other postretirement benefit plans in 2017 is $67 million ( $66 million by the Utilities, $ 1 million by HEI and nil by ASB), compared to $65 million ($ 64 million by the Utilities, $1 million by HEI and nil by ASB) in 2016 . In addition, the Company expects to pay directly $2 million ( $1 million by the Utilities) of benefits in 2017 , compared to $2 million ($ 1 million by the Utilities) paid in 2016 . The components of NPPC and NPBC for HEI consolidated and Hawaiian Electric consolidated were as follows: Three months ended June 30 Six months ended June 30 Pension benefits Other benefits Pension benefits Other benefits (in thousands) 2017 2016 2017 2016 2017 2016 2017 2016 HEI consolidated Service cost $ 15,870 $ 14,913 $ 847 $ 832 $ 32,364 $ 30,304 $ 1,687 $ 1,668 Interest cost 20,361 20,481 2,315 2,363 40,577 40,758 4,726 4,837 Expected return on plan assets (25,646 ) (24,616 ) (3,104 ) (3,091 ) (51,367 ) (49,280 ) (6,170 ) (6,143 ) Amortization of net prior service gain (13 ) (14 ) (448 ) (448 ) (27 ) (28 ) (897 ) (896 ) Amortization of net actuarial loss 6,707 6,408 199 116 13,220 12,377 565 403 Net periodic pension/benefit cost 17,279 17,172 (191 ) (228 ) 34,767 34,131 (89 ) (131 ) Impact of PUC D&Os (4,867 ) (4,765 ) 527 483 (10,023 ) (8,811 ) 673 672 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 12,412 $ 12,407 $ 336 $ 255 $ 24,744 $ 25,320 $ 584 $ 541 Hawaiian Electric consolidated Service cost $ 15,436 $ 14,465 $ 841 $ 820 $ 31,530 $ 29,398 $ 1,676 $ 1,642 Interest cost 18,726 18,801 2,231 2,280 37,315 37,404 4,558 4,669 Expected return on plan assets (23,935 ) (22,885 ) (3,056 ) (3,046 ) (47,946 ) (45,817 ) (6,073 ) (6,049 ) Amortization of net prior service loss (gain) 2 3 (451 ) (451 ) 4 7 (902 ) (902 ) Amortization of net actuarial loss 6,190 5,885 192 113 12,196 11,346 551 397 Net periodic pension/benefit cost 16,419 16,269 (243 ) (284 ) 33,099 32,338 (190 ) (243 ) Impact of PUC D&Os (4,867 ) (4,765 ) 527 483 (10,023 ) (8,811 ) 673 672 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 11,552 $ 11,504 $ 284 $ 199 $ 23,076 $ 23,527 $ 483 $ 429 HEI consolidated recorded retirement benefits expense of $17 million ($ 15 million by the Utilities) and $18 million ( $16 million by the Utilities) in the first six months of 2017 and 2016 , 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 six months of 2017 and 2016 , the Company’s expenses for its defined contribution pension plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan were $3.3 million and $2.8 million , respectively, and cash contributions were $4.0 million and $3.7 million , respectively. For the first six months of 2017 and 2016 , the Utilities’ expenses for its defined contribution pension plan under the HEIRSP were $ 1.0 million and $0.8 million , respectively, and cash contributions were $ 1.0 million and $0.8 million , respectively. |
Share-based compensation
Share-based compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation | Share-based compensation Under the 2010 Equity and Incentive Plan, as amended, HEI can issue shares of common stock as incentive compensation to selected employees in the form of stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares and other share-based and cash-based awards. The 2010 Equity and Incentive Plan (original EIP) was amended and restated effective March 1, 2014 (EIP) and an additional 1.5 million shares was added to the shares available for issuance under these programs. As of June 30, 2017 , approximately 3.3 million shares remained 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 0.4 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 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 June 30, 2017 , there were 85,428 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 June 30 Six months ended June 30 (in millions) 2017 2016 2017 2016 HEI consolidated Share-based compensation expense 1 $ 2.2 $ 1.0 $ 3.3 $ 2.0 Income tax benefit 0.8 0.4 1.2 0.7 Hawaiian Electric consolidated Share-based compensation expense 1 0.7 0.3 1.1 0.6 Income tax benefit 0.3 0.1 0.4 0.2 1 For the three months and six months ended June 30, 2017 and 2016, the Company has not capitalized any share-based compensation. Stock awards. No nonemployee director stock grants were awarded from January 1 to June 30, 2016. Nonemployee director awards totaling $0.2 million were paid in cash in July 2016. HEI granted HEI common stock to nonemployee directors of HEI, Hawaiian Electric and ASB under the 2011 Director Plan as follows: Three months ended June 30 Six months ended June 30 ($ in millions) 2017 2016 2017 2016 Shares granted 35,000 — 35,770 — Fair value $ 1.1 $ — $ 1.2 $ — Income tax benefit 0.4 — 0.5 — The number of shares issued to nonemployee directors of HEI, Hawaiian Electric and ASB is determined based on the closing price of HEI Common Stock on the grant date. Restricted stock units. Information about HEI’s grants of restricted stock units was as follows: Three months ended June 30 Six months ended June 30 2017 2016 2017 2016 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 236,036 $ 31.42 226,537 $ 29.59 220,683 $ 29.57 210,634 $ 28.82 Granted 896 33.06 — — 97,873 33.47 94,282 29.90 Vested (7,370 ) 29.17 (785 ) 27.88 (88,994 ) 28.88 (79,164 ) 27.91 Forfeited (23,079 ) 31.50 — — (23,079 ) 31.50 — — Outstanding, end of period 206,483 $ 31.50 225,752 $ 29.59 206,483 $ 31.50 225,752 $ 29.59 Total weighted-average grant-date fair value of shares granted ($ millions) $ — $ — $ 3.3 $ 2.8 (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 first six months of 2017 and 2016 , total restricted stock units that vested and related dividends had a fair value of $3.3 million and $2.6 million , respectively, and the related tax benefits were $1.2 million and $0.9 million , respectively. As of June 30, 2017 , there was $5.4 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 2.8 years . Long-term incentive plan payable in stock. The 2017-2019 long-term incentive plan (LTIP) provides for performance awards under the EIP of shares of HEI common stock based on the satisfaction of performance goals, including a market condition goal. 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 and calculated dividend equivalents. The potential payout varies from 0% to 200% of the number of target shares depending on the achievement of the goals. The market condition goal is based on HEI’s total shareholder return (TSR) compared to the Edison Electric Institute Index over the three -year period. The other performance condition goals relate to EPS growth, return on average common equity (ROACE) and ASB’s efficiency ratio. The 2015-2017 and 2016-2018 LTIPs provide for performance awards payable in cash, and thus are not included in the tables below. LTIP linked to TSR . Information about HEI’s LTIP grants linked to TSR was as follows: Three months ended June 30 Six months ended June 30 2017 2016 2017 2016 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 36,971 $ 39.51 83,947 $ 22.95 83,106 $ 22.95 162,500 $ 27.66 Granted (target level) 233 39.51 — — 37,204 39.51 — — Vested (issued or unissued and cancelled) — — — — (83,106 ) 22.95 (78,553 ) 32.69 Forfeited (3,434 ) 39.51 — — (3,434 ) 39.51 — — Outstanding, end of period 33,770 $ 39.51 83,947 $ 22.95 33,770 $ 39.51 83,947 $ 22.95 Total weighted-average grant-date fair value of shares granted ($ millions) $ — $ — $ 1.5 $ — (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 TSR and the resulting fair value of LTIP awards granted: 2017 Risk-free interest rate 1.46 % Expected life in years 3 Expected volatility 20.1 % Range of expected volatility for Peer Group 15.4% to 26.0% Grant date fair value (per share) $39.51 For the six months ended June 30, 2017 , total vested LTIP awards linked to TSR and related dividends had a fair value of $1.9 million and the related tax benefits were $0.7 million . For the six months ended June 30, 2016 , all vested shares in the table above were unissued and cancelled (i.e., lapsed) because the TSR goal was not met. As of June 30, 2017 , there was $1.1 million of total unrecognized compensation cost related to the nonvested performance awards payable in shares linked to TSR. The cost is expected to be recognized over a weighted-average period of 2.5 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 June 30 Six months ended June 30 2017 2016 2017 2016 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 147,888 $ 33.48 113,550 $ 25.18 109,816 $ 25.18 222,647 $ 26.02 Granted (target level) 930 32.58 — — 148,818 33.47 — — Vested (issued) — — — — (109,816 ) 25.18 (109,097 ) 26.89 Forfeited (13,740 ) 33.48 — — (13,740 ) 33.48 — — Outstanding, end of period 135,078 $ 33.47 113,550 $ 25.18 135,078 $ 33.47 113,550 $ 25.18 Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions) $ — $ — $ 5.0 $ — (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For the six months ended June 30, 2017 and 2016 , total vested LTIP awards linked to other performance conditions and related dividends had a fair value of $4.2 million and $3.6 million and the related tax benefits were $1.6 million and $1.4 million , respectively. As of June 30, 2017 , there was $3.8 million of total unrecognized compensation cost related to the nonvested shares linked to performance conditions other than TSR. The cost is expected to be recognized over a weighted-average period of 2.5 years . |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Company’s ETRs (combined federal and state income tax rates) for the second quarters of 2017 and 2016 were 34% and 37% , respectively, and for the first six months of 2017 and 2016 were 34% and 37% , respectively. The ETR was lower for the three months and six months ended June 30, 2017 compared to the same periods in 2016 due in part to 2016 nondeductible merger- and spin-off-related expenses. Also, in the first quarter of 2017, the Company recognized excess tax benefits on share-based compensation after the adoption of ASU No. 2016-09. Hawaiian Electric’s ETRs for the second quarters of 2017 and 2016 were 36% and 38% , respectively, and for the first six months of 2017 and 2016 were 36% and 37% , respectively. The lower ETR was due in part to the recognition of excess tax benefits on share-based compensation after the adoption of ASU No. 2016-09. Recent tax developments. The extension of bonus depreciation under the “Protecting Americans from Tax Hikes (PATH) Act of 2015” continues to be the most significant recent tax change. The PATH Act provides 50% bonus depreciation through 2017, phases down the percentage to 40% in 2018 and 30% in 2019 and then terminates bonus depreciation thereafter. Tax depreciation is expected to increase by approximately $120 million in 2017 due to bonus depreciation, which has the effect of increasing accumulated deferred tax liabilities. However, the rate of growth of accumulated deferred tax liabilities is decreasing over time as book depreciation “catches up” with the tax depreciation taken in the past. |
Cash flows
Cash flows | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash flows | Cash flows Six months ended June 30 2017 2016 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates $ 46 $ 43 Income taxes paid (including refundable credits) 21 14 Income taxes refunded (including refundable credits) — 45 Hawaiian Electric consolidated Interest paid to non-affiliates 36 31 Income taxes paid (including refundable credits) 8 — Income taxes refunded (including refundable credits) — 20 Supplemental disclosures of noncash activities HEI consolidated Common stock dividends reinvested in HEI common stock (financing) 1 — 11 Loans transferred from held for investment to held for sale (investing) 9 — Common stock issued (gross) for director and executive/management compensation (financing) 2 11 6 HEI consolidated and Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 2 8 Change in unpaid invoices and accruals for capital expenditures (investing) (7 ) (32 ) 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. 2 The amounts shown represent the market value of common stock issued for director and executive/management compensation and withheld to satisfy statutory tax liabilities. |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements Fair value estimates are estimates of 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 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 their 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. Classification in the hierarchy is based upon the lowest level input that is significant to the fair value measurement of the asset or liability. For instruments classified in Level 1 and 2 where inputs are primarily based upon observable market data, there is less judgment applied in arriving at the fair value. For instruments classified in Level 3, management judgment is more significant due to the lack of observable market data. Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include mortgage servicing rights accounted for by the amortization method, loan impairments for certain loans and goodwill. Fair value measurement and disclosure valuation methodology. The following are descriptions of the valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial instruments not carried at fair value: Short-term borrowings—other than bank . The carrying amount of short-term borrowings approximated fair value because of the short maturity of these instruments. Investment securities . The fair value of ASB’s investment securities is determined quarterly through pricing obtained from independent third-party pricing services or from brokers not affiliated with the trade. Non-binding broker quotes are infrequent and generally occur for new securities that are settled close to the month-end pricing date. The third-party pricing vendors ASB uses for pricing its securities are reputable firms that provide pricing services on a global basis and have processes in place to ensure quality and control. The third-party pricing services use a variety of methods to determine the fair value of securities that fall under Level 2 of the ASB’s fair value measurement hierarchy. Among the considerations are quoted prices for similar securities in an active market, yield spreads for similar trades, adjustments for liquidity, size, collateral characteristics, historic and generic prepayment speeds, and other observable market factors. To enhance the robustness of the pricing process, ASB will on a quarterly basis compare its standard third-party vendor’s price with that of another third-party vendor. If the prices are within an acceptable tolerance range, the price of the standard vendor will be accepted. If the variance is beyond the tolerance range, an evaluation will be conducted by ASB and a challenge to the price may be made. Fair value in such cases will be based on the value that best reflects the data and observable characteristics of the security. In all cases, the fair value used will have been independently determined by a third-party pricing vendor or non-affiliated broker and not by ASB. The fair value of the mortgage revenue bond is estimated using a discounted cash flow model to calculate the present value of future principal and interest payments and, therefore is classified within Level 3 of the valuation hierarchy. Loans held for sale . Loans carried at the lower of cost or market are valued using market observable pricing inputs, which are derived from third party loan sales and securitizations and, therefore, are classified within Level 2 of the valuation hierarchy. ASB transferred $6.1 million of loans receivable out of Level 3 into Level 2 due to changes in the observability of significant inputs during the six months ended June 30, 2017 . The related gain from the fair value adjustment of loans sold was not material in the three and six months ended June 30, 2017. Loans held for investment . Fair value of loans held for investment is derived using a discounted cash flow approach which includes an evaluation of the underlying loan characteristics. The valuation model uses loan characteristics which includes product type, maturity dates and the underlying interest rate of the portfolio. This information is input into the valuation models along with various forecast valuation assumptions including prepayment forecasts, to determine the discount rate. These assumptions are derived from internal and third party sources. Noting the valuation is derived from model-based techniques, ASB includes loans held for investment within Level 3 of the valuation hierarchy. Impaired loans . At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Fair value is determined primarily by using an income, cost or market approach and is normally provided through appraisals. Impaired loans carried at fair value generally receive specific allocations within the allowance for loan losses. For collateral-dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Generally, impaired loans are evaluated quarterly for additional impairment and adjusted accordingly. Real estate acquired in settlement of loans . Foreclosed assets are carried at fair value (less estimated costs to sell) and are generally based upon appraisals or independent market prices that are periodically updated subsequent to classification as real estate owned. Such adjustments typically result in a Level 3 classification of the inputs for determining fair value. ASB estimates the fair value of collateral-dependent loans and real estate owned using the sales comparison approach. Mortgage servicing rights . Mortgage servicing rights (MSRs) are capitalized at 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. Mortgage servicing rights are evaluated for impairment at each reporting date. ASB's MSRs are stratified 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 "Revenues - bank" in the consolidated statements of income. A direct write-down is recorded when the recoverability of the valuation allowance is deemed to be unrecoverable. ASB compares the fair value of MSRs to an estimated value calculated by an independent third-party. The third-party relies on both published and unpublished sources of market related assumptions and their own experience and expertise to arrive at a value. ASB uses the third-party value only to assess the reasonableness of its own estimate. Time deposits . 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 borrowings . For fixed-rate advances and repurchase agreements, fair value is estimated using quantitative discounted cash flow models that require the use of interest rate inputs that are currently offered for advances and repurchase agreements of similar remaining maturities. The majority of market inputs are actively quoted and can be validated through external sources, including broker market transactions and third party pricing services. Long-term debt—other than bank . Fair value of long-term debt of HEI and the Utilities 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. Interest rate lock commitments (IRLCs) . 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. Forward sales commitments . To be announced (TBA) mortgage-backed securities 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 using quoted prices in the market place that are observable and are classified as Level 2 measurements. Window forward contracts . The estimated fair value of the Utilities’ window forward contracts was obtained from a third-party financial services provider based on the effective exchange rate offered for the foreign currency denominated transaction. Window forward contracts are classified as Level 2 measurements. The following table presents the carrying or notional amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments. For stock in Federal Home Loan Bank, the carrying amount is a reasonable estimate of fair value because it can only be redeemed at par. For bank-owned life insurance, the carrying amount is the cash surrender value of the insurance policies, which is a reasonable estimate of fair value. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings and money market deposits, the carrying amount is a reasonable estimate of fair value as these liabilities have no stated maturity. Estimated fair value Carrying or notional amount Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (in thousands) (Level 1) (Level 2) (Level 3) Total June 30, 2017 Financial assets HEI consolidated Available-for-sale investment securities $ 1,302,886 $ — $ 1,287,459 $ 15,427 $ 1,302,886 Stock in Federal Home Loan Bank 11,706 — 11,706 — 11,706 Loans receivable, net 4,693,539 — 5,261 4,836,804 4,842,065 Mortgage servicing rights 9,181 — — 12,270 12,270 Bank-owned life insurance 146,122 — 146,122 — 146,122 Derivative assets 58,120 47 798 — 845 Hawaiian Electric consolidated Derivative assets-window forward contracts 15,995 — 615 — 615 Financial liabilities HEI consolidated Deposit liabilities 5,724,386 — 5,721,882 — 5,721,882 Short-term borrowings—other than bank 49,789 — 49,789 — 49,789 Other bank borrowings 188,130 — 188,513 — 188,513 Long-term debt, net—other than bank 1,618,647 — 1,740,479 — 1,740,479 Derivative liabilities 8,263 — 246 — 246 Hawaiian Electric consolidated Short-term borrowings 43,990 — 43,990 — 43,990 Long-term debt, net 1,318,845 — 1,434,528 — 1,434,528 Derivative liabilities-window forward contracts 4,726 — 230 — 230 December 31, 2016 Financial assets HEI consolidated Money market funds $ 13,085 $ — $ 13,085 $ — $ 13,085 Available-for-sale investment securities 1,105,182 — 1,089,755 15,427 1,105,182 Stock in Federal Home Loan Bank 11,218 — 11,218 — 11,218 Loans receivable, net 4,701,977 — 13,333 4,839,493 4,852,826 Mortgage servicing rights 9,373 — — 13,216 13,216 Bank-owned life insurance 143,197 — 143,197 — 143,197 Derivative assets 23,578 — 453 — 453 Financial liabilities HEI consolidated Deposit liabilities 5,548,929 — 5,546,644 — 5,546,644 Short-term borrowings—other than bank — — — — — Other bank borrowings 192,618 — 193,991 — 193,991 Long-term debt, net—other than bank 1,619,019 — 1,704,717 — 1,704,717 Derivative liabilities 53,852 129 823 — 952 Hawaiian Electric consolidated Long-term debt, net 1,319,260 — 1,399,490 — 1,399,490 Derivative liabilities-window forward contracts 20,734 — 743 — 743 Fair value measurements on a recurring basis. Assets and liabilities measured at fair value on a recurring basis were as follows: June 30, 2017 December 31, 2016 Fair value measurements using Fair value measurements using (in thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Money market funds (“other” segment) $ — $ — $ — $ — $ 13,085 $ — Available-for-sale investment securities (bank segment) Mortgage-related securities-FNMA, FHLMC and GNMA $ — $ 1,100,876 $ — $ — $ 897,474 $ — U.S. Treasury and federal agency obligations — 186,583 — — 192,281 — Mortgage revenue bond — — 15,427 — — 15,427 $ — $ 1,287,459 $ 15,427 $ — $ 1,089,755 $ 15,427 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 142 $ — $ — $ 445 $ — Forward commitments (bank segment) 1 47 41 — — 8 — Window forward contract (electric utility segment) 2 — 615 — — — — $ 47 $ 798 $ — $ — $ 453 $ — Derivative liabilities Interest rate lock commitments (bank segment) 1 $ — $ 16 $ — $ — $ 24 $ — Forward commitments (bank segment) 1 — — — 129 56 — Window forward contracts (electric utility segment) 2 — 230 — — 743 — $ — $ 246 $ — $ 129 $ 823 $ — 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. 2 Derivatives are included in noncurrent regulatory assets and/or liabilities in the balance sheets. There were no transfers of financial assets and liabilities between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2017 . The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: Three months ended June 30 Six months ended June 30 Mortgage revenue bond 2017 2016 2017 2016 (in thousands) Beginning balance $ 15,427 $ — $ 15,427 $ — Principal payments received — — — — Purchases — — — — Unrealized gain (loss) included in other comprehensive income — — — — Ending balance $ 15,427 $ — $ 15,427 $ — ASB holds one mortgage revenue bond issued by the Department of Budget and Finance of the State of Hawaii. The Company estimates the fair value by using a discounted cash flow model to calculate the present value of estimated future principal and interest payments. The unobservable input used in the fair value measurement is the weighted average discount rate. As of June 30, 2017 , the weighted average discount rate was 2.820% which was derived by incorporating a credit spread over the one month LIBOR rate. Significant increases (decreases) in the weighted average discount rate could result in a significantly lower (higher) fair value measurement. Fair value measurements on a nonrecurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis and therefore are not included in the tables above. These measurements primarily result from assets carried at the lower of cost or fair value or from impairment of individual assets. The carrying value of assets measured at fair value on a nonrecurring basis were as follows: Fair value measurements (in thousands) Balance Level 1 Level 2 Level 3 June 30, 2017 Loans $ 1,258 $ — $ — $ 1,258 December 31, 2016 Loans 2,767 — — 2,767 Real estate acquired in settlement of loans 1,189 — — 1,189 For six months ended June 30, 2017 and 2016 , there were no adjustments to fair value for ASB’s loans held for sale. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) ($ in thousands) Fair value Valuation technique Significant unobservable input Range Weighted Average June 30, 2017 Residential loan $ 448 Fair value of collateral Appraised value less 7% selling cost N/A (2) Commercial loan 810 Sales price Sales price N/A (2) Total loans $ 1,258 December 31, 2016 Residential loans $ 2,468 Sales price Sales price 95-100% 97% Residential loans 287 Fair value of property or collateral Appraised value less 7% selling cost 42-65% 61% Home equity lines of credit 12 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Total loans $ 2,767 Real estate acquired in settlement of loans $ 1,189 Fair value of property or collateral Appraised value less 7% selling cost 100% 100% (1) Represent percent of outstanding principal balance. (2) N/A - Not applicable. There is one loan in each fair value measurement type. Significant increases (decreases) in any of those inputs in isolation would result in significantly higher (lower) fair value measurements. |
Termination of proposed merger
Termination of proposed merger and other matters | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Termination of proposed merger and other matters | Termination of proposed merger and other matters On December 3, 2014, HEI, NextEra Energy, Inc. (NEE) and two subsidiaries of NEE entered into an Agreement and Plan of Merger (the Merger Agreement), under which Hawaiian Electric was to become a subsidiary of NEE. The Merger Agreement contemplated that, prior to the Merger, HEI would distribute to its shareholders all of the common stock of ASB Hawaii, Inc. (ASB Hawaii), the parent company of ASB (such distribution referred to as the Spin-Off). The closing of the Merger was subject to various conditions, including receipt of regulatory approval from the PUC. In July 2016: (1) the PUC dismissed NEE and Hawaiian Electric’s application requesting approval of the proposed Merger, (2) NEE terminated the Merger Agreement and (3) pursuant to the terms of the Merger Agreement, NEE paid HEI a $90 million termination fee and $5 million for the reimbursement of expenses associated with the transaction. In 2016, the Company recognized $60 million of net income ( $2 million of net loss in each of the first and second quarters and $64 million of net income in the third quarter), comprised of the termination fee ( $55 million ), reimbursements of expenses from NEE and insurance ( $3 million ), and additional tax benefits on the previously non-tax-deductible merger- and Spin-Off-related expenses incurred through June 30, 2016 ( $8 million ), less merger- and Spin-Off-related expenses incurred in 2016 ( $6 million ) (all net of tax impacts). The Spin-Off of ASB Hawaii was cancelled as it was cross-conditioned on the merger consummation. In May 2016, the Utilities had filed an application for approval of an liquefied natural gas (LNG) supply and transport agreement and LNG-related capital equipment, which application was conditioned on the PUC’s approval of the proposed Merger. Subsequently, the Utilities terminated the LNG agreement and withdrew the application. In 2016, Hawaiian Electric recognized expenses related to the terminated LNG agreement of $1 million , net of tax benefits, in each of the first and second quarters. |
Basis of presentation (Policies
Basis of presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent accounting pronouncements | Revenues from contracts with customers . In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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: (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. ASU No. 2014-09 also requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. As of June 30, 2017 , the Company has identified its revenue streams from, and performance obligations related to, contracts with customers and has performed an analysis of these revenue streams for the impacts of Topic 606. The majority of the revenue subject to Topic 606 is the Utilities’ electric sales revenue and the Company and Hawaiian Electric do not expect a material impact on the timing or pattern of revenue recognition upon adoption of ASU No. 2014-09. The Company and Hawaiian Electric expect changes to the presentation and disclosure of revenues. The Company plans to adopt ASU No. 2014-09 (and subsequently issued revenue-related ASUs, as applicable) in the first quarter of 2018 using the modified retrospective approach. The Company continues to monitor developments in industry-specific application guidance and evaluate further impacts of Topic 606. Financial instruments . In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which, among other things: • Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. • Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). • Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The Company plans to adopt ASU No. 2016-01 in the first quarter of 2018 and expects changes to disclosures, but otherwise believes the impact of adoption will not be material to the Company’s and Hawaiian Electric’s consolidated financial statements. Leases . In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires that lessees recognize a liability to make lease payments (the lease liability) and a right-of-use asset, representing its right to use the underlying asset for the lease term, for all leases (except short-term leases) at the commencement date. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election and recognize lease expense for such leases generally on a straight-line basis over the lease term. For finance leases, a lessee is required to recognize interest on the lease liability separately from amortization of the right-of-use asset in the condensed consolidated statement of income. For operating leases, a lessee is required to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis. The Company plans to adopt ASU No. 2016-02 in the first quarter of 2019 and has not yet determined the method or impact of adoption. Stock compensation . In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for share-based payment transactions. The Company adopted ASU No. 2016-09 in the first quarter of 2017. From January 1, 2017, all excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in the income statement. From January 1, 2017, no excess tax benefits or deficiencies are included in determining the assumed proceeds under the treasury stock method of calculating diluted EPS. As of January 1, 2017, HEI adopted an accounting policy to account for forfeitures when they occur. From January 1, 2017, HEI retrospectively applied the cashflow guidance for taxes paid (equivalent to the value of withheld shares for tax withholding purposes) and excess tax benefits. Excess tax benefits will be classified along with other income tax cash flows as an operating activity and the cash payments made to taxing authorities on the employees’ behalf for withheld shares are classified as financing activities on the HEI unaudited condensed consolidated statements of cash flows for all periods that are presented. Credit Losses . In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ,” which is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations . ASU No. 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date (based on historical experience, current conditions and reasonable and supportable forecasts) and enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU No. 2016-13 amends the accounting for credit losses on available-for-sale (AFS) debt securities and purchased financial assets with credit deterioration. The other-than-temporary impairment model of accounting for credit losses on AFS debt securities will be replaced with an estimate of expected credit losses only when the fair value is below the amortized cost of the asset. The length of time the fair value of an AFS debt security has been below the amortized cost will no longer impact the determination of whether a credit loss exists. The AFS debt security model will also require the use of an allowance to record the estimated losses (and subsequent recoveries). The accounting for the initial recognition of the estimated expected credit losses for purchased financial assets with credit deterioration would be recognized through an allowance for credit losses with an offset to the cost basis of the related financial asset at acquisition (i.e., there is no impact to net income at initial recognition). The Company plans to adopt ASU No. 2016-13 in the first quarter of 2020 and has not yet determined the impact of adoption. Cash Flows . In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on eight specific cash flow issues - debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies), distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. The Company plans to adopt ASU No. 2016-15 in the first quarter of 2018 using a retrospective transition method and has not yet determined the impact of adoption. Restricted cash . In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company plans to adopt ASU No. 2016-18 in the first quarter of 2018 using a retrospective transition method and believes the impact of adoption will not be material to the Company’s and Hawaiian Electric’s consolidated statements of cash flows. Goodwill impairment . In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Prior to the adoption of ASU No. 2017-04, an entity was required to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compared the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeded its fair value, the entity performed Step 2 and compared the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeded the implied fair value of that goodwill would then be recorded. ASU No. 2017-04 removes the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value. ASU No. 2017-04 does not amend the optional qualitative assessment of goodwill impairment. The Company plans to adopt ASU No. 2017-04 prospectively in the fourth quarter of 2017 and believes the impact of adoption will not be material to the Company’s and Hawaiian Electric’s consolidated financial statements. Net periodic pension cost and net periodic postretirement benefit cost . In March 2017, the FASB issued ASU No. 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost and net periodic postretirement benefit cost as defined in paragraphs 715-30-35-4 and 715-60-35-9 to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component is eligible for capitalization under GAAP, when applicable. The Company plans to adopt ASU No. 2017-07 in the first quarter of 2018 and has not yet determined the impact of adoption. |
Segment financial information (
Segment financial information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment financial information | (in thousands) Electric utility Bank Other Total Three months ended June 30, 2017 Revenues from external customers $ 556,836 $ 75,329 $ 116 $ 632,281 Intersegment revenues (eliminations) 39 — (39 ) — Revenues $ 556,875 $ 75,329 $ 77 $ 632,281 Income (loss) before income taxes $ 41,003 $ 24,796 $ (6,173 ) $ 59,626 Income taxes (benefit) 14,860 8,063 (2,431 ) 20,492 Net income (loss) 26,143 16,733 (3,742 ) 39,134 Preferred stock dividends of subsidiaries 499 — (26 ) 473 Net income (loss) for common stock $ 25,644 $ 16,733 $ (3,716 ) $ 38,661 Six months ended June 30, 2017 Revenues from external customers $ 1,075,402 $ 148,185 $ 256 $ 1,223,843 Intersegment revenues (eliminations) 84 — (84 ) — Revenues $ 1,075,486 $ 148,185 $ 172 $ 1,223,843 Income (loss) before income taxes $ 75,725 $ 48,956 $ (13,473 ) $ 111,208 Income taxes (benefit) 27,618 16,410 (6,620 ) 37,408 Net income (loss) 48,107 32,546 (6,853 ) 73,800 Preferred stock dividends of subsidiaries 998 — (52 ) 946 Net income (loss) for common stock $ 47,109 $ 32,546 $ (6,801 ) $ 72,854 Total assets (at June 30, 2017) $ 6,071,155 $ 6,610,877 $ 11,773 $ 12,693,805 Three months ended June 30, 2016 Revenues from external customers $ 495,349 $ 70,749 $ 146 $ 566,244 Intersegment revenues (eliminations) 46 — (46 ) — Revenues $ 495,395 $ 70,749 $ 100 $ 566,244 Income (loss) before income taxes $ 58,340 $ 20,224 $ (7,653 ) $ 70,911 Income taxes (benefit) 21,984 6,939 (2,613 ) 26,310 Net income (loss) 36,356 13,285 (5,040 ) 44,601 Preferred stock dividends of subsidiaries 499 — (26 ) 473 Net income (loss) for common stock $ 35,857 $ 13,285 $ (5,014 ) $ 44,128 Six months ended June 30, 2016 Revenues from external customers $ 977,394 $ 139,589 $ 221 $ 1,117,204 Intersegment revenues (eliminations) 53 — (53 ) — Revenues $ 977,447 $ 139,589 $ 168 $ 1,117,204 Income (loss) before income taxes $ 98,759 $ 39,818 $ (16,540 ) $ 122,037 Income taxes (benefit) 36,537 13,860 (5,786 ) 44,611 Net income (loss) 62,222 25,958 (10,754 ) 77,426 Preferred stock dividends of subsidiaries 998 — (52 ) 946 Net income (loss) for common stock $ 61,224 $ 25,958 $ (10,702 ) $ 76,480 Total assets (at December 31, 2016) $ 5,975,428 $ 6,421,357 $ 28,721 $ 12,425,506 |
Electric utility segment (Table
Electric utility segment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Regulatory projects and legal obligations | |
Schedule of condensed consolidating statements of income (loss) | Statements of Income Data (unaudited) Three months ended June 30 Six months ended June 30 (in thousands) 2017 2016 2017 2016 Interest and dividend income Interest and fees on loans $ 52,317 $ 49,690 $ 103,059 $ 98,127 Interest and dividends on investment securities 6,763 4,443 13,743 9,460 Total interest and dividend income 59,080 54,133 116,802 107,587 Interest expense Interest on deposit liabilities 2,311 1,691 4,414 3,283 Interest on other borrowings 824 1,467 1,640 2,952 Total interest expense 3,135 3,158 6,054 6,235 Net interest income 55,945 50,975 110,748 101,352 Provision for loan losses 2,834 4,753 6,741 9,519 Net interest income after provision for loan losses 53,111 46,222 104,007 91,833 Noninterest income Fees from other financial services 5,810 5,701 11,420 11,200 Fee income on deposit liabilities 5,565 5,262 10,993 10,418 Fee income on other financial products 1,971 2,207 3,837 4,412 Bank-owned life insurance 1,925 1,006 2,908 2,004 Mortgage banking income 587 1,554 1,376 2,749 Gains on sale of investment securities, net — 598 — 598 Other income, net 391 288 849 621 Total noninterest income 16,249 16,616 31,383 32,002 Noninterest expense Compensation and employee benefits 24,742 21,919 47,979 44,353 Occupancy 4,185 4,115 8,339 8,253 Data processing 3,207 3,277 6,487 6,449 Services 2,766 2,755 5,126 5,666 Equipment 1,771 1,771 3,519 3,434 Office supplies, printing and postage 1,527 1,583 3,062 2,948 Marketing 839 899 1,356 1,760 FDIC insurance 822 913 1,550 1,797 Other expense 4,705 5,382 9,016 9,357 Total noninterest expense 44,564 42,614 86,434 84,017 Income before income taxes 24,796 20,224 48,956 39,818 Income taxes 8,063 6,939 16,410 13,860 Net income $ 16,733 $ 13,285 $ 32,546 $ 25,958 |
Schedule of condensed consolidating balance sheets | Balance Sheets Data (unaudited) (in thousands) June 30, 2017 December 31, 2016 Assets Cash and due from banks $ 128,609 $ 137,083 Interest-bearing deposits 37,049 52,128 Restricted cash — 1,764 Available-for-sale investment securities, at fair value 1,302,886 1,105,182 Stock in Federal Home Loan Bank, at cost 11,706 11,218 Loans receivable held for investment 4,744,634 4,738,693 Allowance for loan losses (56,356 ) (55,533 ) Net loans 4,688,278 4,683,160 Loans held for sale, at lower of cost or fair value 5,261 18,817 Other 354,898 329,815 Goodwill 82,190 82,190 Total assets $ 6,610,877 $ 6,421,357 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 1,694,150 $ 1,639,051 Deposit liabilities—interest-bearing 4,030,236 3,909,878 Other borrowings 188,130 192,618 Other 101,974 101,635 Total liabilities 6,014,490 5,843,182 Commitments and contingencies Common stock 1 1 Additional paid in capital 344,062 342,704 Retained earnings 271,739 257,943 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (5,687 ) $ (7,931 ) Retirement benefit plans (13,728 ) (19,415 ) (14,542 ) (22,473 ) Total shareholder’s equity 596,387 578,175 Total liabilities and shareholder’s equity $ 6,610,877 $ 6,421,357 Other assets Bank-owned life insurance $ 146,122 $ 143,197 Premises and equipment, net 108,158 90,570 Prepaid expenses 4,632 3,348 Accrued interest receivable 16,949 16,824 Mortgage-servicing rights 9,181 9,373 Low-income housing equity investments 48,596 47,081 Real estate acquired in settlement of loans, net 1,554 1,189 Other 19,706 18,233 $ 354,898 $ 329,815 Other liabilities Accrued expenses $ 34,451 $ 36,754 Federal and state income taxes payable 6,336 4,728 Cashier’s checks 24,191 24,156 Advance payments by borrowers 10,334 10,335 Other 26,662 25,662 $ 101,974 $ 101,635 |
Hawaiian Electric Company, Inc. and Subsidiaries | |
Regulatory projects and legal obligations | |
Schedule of purchases from all IPPs | As of June 30, 2017 , purchases from all IPPs were as follows: Three months ended June 30 Six months ended June 30 (in millions) 2017 2016 2017 2016 Kalaeloa $ 48 $ 36 $ 88 $ 65 AES Hawaii 35 36 64 74 HPOWER 16 17 33 33 Puna Geothermal Venture 10 5 18 12 HEP 10 4 17 15 Other IPPs 1 34 41 60 56 Total IPPs $ 153 $ 139 $ 280 $ 255 1 Includes wind power, solar power, feed-in tariff projects and other PPAs. |
Schedule of net annual incremental amounts proposed to be collected (refunded) | The net annual incremental amounts proposed to be collected (refunded), as revised for Maui Electric, were as follows: ($ in millions) Hawaiian Electric Hawaii Electric Light Maui Electric 2017 Annual incremental RAM adjusted revenues $ 12.7 $ 3.2 $ 1.6 Annual change in accrued earnings sharing credits $ — $ — $ — Annual change in accrued RBA balance as of December 31, 2016 (and associated revenue taxes) (refunded) $ (2.4 ) $ (2.5 ) $ (0.2 ) Net annual incremental amount to be collected under the tariffs $ 10.3 $ 0.7 $ 1.4 Impact on typical residential customer monthly bill (in dollars) * $ 0.60 $ 0.15 $ 0.79 * Based on a 500 kilowatthour (KWH) bill for Hawaiian Electric, Maui Electric, and Hawaii Electric Light. The bill impact for Lanai and Molokai customers is expected to be an increase of $ 0.63 , based on a 400 KWH bill. |
Schedule of condensed consolidating statements of income (loss) | Condensed Consolidating Statement of Income (unaudited) Six months ended June 30, 2016 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 684,185 146,835 146,464 — (37 ) $ 977,447 Expenses Fuel oil 136,319 26,122 43,198 — — 205,639 Purchased power 194,979 36,157 23,781 — — 254,917 Other operation and maintenance 137,755 31,557 34,159 — — 203,471 Depreciation 63,044 18,898 11,599 — — 93,541 Taxes, other than income taxes 66,098 13,796 13,973 — — 93,867 Total expenses 598,195 126,530 126,710 — — 851,435 Operating income 85,990 20,305 19,754 — (37 ) 126,012 Allowance for equity funds used during construction 2,965 333 438 — — 3,736 Equity in earnings of subsidiaries 18,812 — — — (18,812 ) — Interest expense and other charges, net (22,210 ) (5,634 ) (4,604 ) — 37 (32,411 ) Allowance for borrowed funds used during construction 1,116 128 178 — — 1,422 Income before income taxes 86,673 15,132 15,766 — (18,812 ) 98,759 Income taxes 24,909 5,683 5,945 — — 36,537 Net income 61,764 9,449 9,821 — (18,812 ) 62,222 Preferred stock dividends of subsidiaries — 267 191 — — 458 Net income attributable to Hawaiian Electric 61,764 9,182 9,630 — (18,812 ) 61,764 Preferred stock dividends of Hawaiian Electric 540 — — — — 540 Net income for common stock $ 61,224 9,182 9,630 — (18,812 ) $ 61,224 Condensed Consolidating Statement of Income (unaudited) Three months ended June 30, 2016 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 347,010 73,652 74,758 — (25 ) $ 495,395 Expenses Fuel oil 62,234 11,748 17,917 — — 91,899 Purchased power 103,062 19,360 16,636 — — 139,058 Other operation and maintenance 68,197 15,116 16,250 — — 99,563 Depreciation 31,522 9,449 5,789 — — 46,760 Taxes, other than income taxes 33,414 6,905 7,110 — — 47,429 Total expenses 298,429 62,578 63,702 — — 424,709 Operating income 48,581 11,074 11,056 — (25 ) 70,686 Allowance for equity funds used during construction 1,559 206 232 — — 1,997 Equity in earnings of subsidiaries 10,883 — — — (10,883 ) — Interest expense and other charges, net (10,345 ) (2,669 ) (2,114 ) — 25 (15,103 ) Allowance for borrowed funds used during construction 587 79 94 — — 760 Income before income taxes 51,265 8,690 9,268 — (10,883 ) 58,340 Income taxes 15,138 3,337 3,509 — — 21,984 Net income 36,127 5,353 5,759 — (10,883 ) 36,356 Preferred stock dividends of subsidiaries — 133 96 — — 229 Net income attributable to Hawaiian Electric 36,127 5,220 5,663 — (10,883 ) 36,127 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 35,857 5,220 5,663 — (10,883 ) $ 35,857 Condensed Consolidating Statement of Income (unaudited) Three months ended June 30, 2017 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 394,414 81,710 80,765 — (14 ) $ 556,875 Expenses Fuel oil 99,814 14,475 26,970 — — 141,259 Purchased power 116,458 23,482 13,127 — — 153,067 Other operation and maintenance 70,961 17,558 17,855 — — 106,374 Depreciation 32,723 9,686 5,747 — — 48,156 Taxes, other than income taxes 37,619 7,702 7,651 — — 52,972 Total expenses 357,575 72,903 71,350 — — 501,828 Operating income 36,839 8,807 9,415 — (14 ) 55,047 Allowance for equity funds used during construction 2,659 134 234 — — 3,027 Equity in earnings of subsidiaries 7,936 — — — (7,936 ) — Interest expense and other charges, net (12,562 ) (2,996 ) (2,670 ) — 14 (18,214 ) Allowance for borrowed funds used during construction 988 55 100 — — 1,143 Income before income taxes 35,860 6,000 7,079 — (7,936 ) 41,003 Income taxes 9,946 2,235 2,679 — — 14,860 Net income 25,914 3,765 4,400 — (7,936 ) 26,143 Preferred stock dividends of subsidiaries — 133 96 — — 229 Net income attributable to Hawaiian Electric 25,914 3,632 4,304 — (7,936 ) 25,914 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 25,644 3,632 4,304 — (7,936 ) $ 25,644 Condensed Consolidating Statement of Income (unaudited) Six months ended June 30, 2017 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 757,257 160,692 157,558 — (21 ) $ 1,075,486 Expenses Fuel oil 197,815 31,732 55,982 — — 285,529 Purchased power 216,605 42,071 21,515 — — 280,191 Other operation and maintenance 138,239 33,074 35,301 — — 206,614 Depreciation 65,445 19,371 11,556 — — 96,372 Taxes, other than income taxes 72,659 15,152 14,984 — — 102,795 Total expenses 690,763 141,400 139,338 — — 971,501 Operating income 66,494 19,292 18,220 — (21 ) 103,985 Allowance for equity funds used during construction 4,715 249 462 — — 5,426 Equity in earnings of subsidiaries 16,539 — — — (16,539 ) — Interest expense and other charges, net (24,619 ) (6,000 ) (5,120 ) — 21 (35,718 ) Allowance for borrowed funds used during construction 1,737 100 195 — — 2,032 Income before income taxes 64,866 13,641 13,757 — (16,539 ) 75,725 Income taxes 17,217 5,158 5,243 — — 27,618 Net income 47,649 8,483 8,514 — (16,539 ) 48,107 Preferred stock dividends of subsidiaries — 267 191 — — 458 Net income attributable to Hawaiian Electric 47,649 8,216 8,323 — (16,539 ) 47,649 Preferred stock dividends of Hawaiian Electric 540 — — — — 540 Net income for common stock $ 47,109 8,216 8,323 — (16,539 ) $ 47,109 |
Schedule of condensed consolidating statement of comprehensive income (loss) | Condensed Consolidating Statement of Comprehensive Income (unaudited) Three months ended June 30, 2017 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Net income for common stock $ 25,644 3,632 4,304 — (7,936 ) $ 25,644 Other comprehensive income (loss), net of taxes: Derivatives qualified as cash flow hedges: Reclassification adjustment to net income, net of tax benefits — — — — — — Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 3,621 449 344 — (793 ) 3,621 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (3,581 ) (448 ) (343 ) — 791 (3,581 ) Other comprehensive income (loss), net of taxes 40 1 1 — (2 ) 40 Comprehensive income attributable to common shareholder $ 25,684 3,633 4,305 — (7,938 ) $ 25,684 Condensed Consolidating Statement of Comprehensive Income (unaudited) Six months ended June 30, 2017 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Net income for common stock $ 47,109 8,216 8,323 — (16,539 ) $ 47,109 Other comprehensive income (loss), net of taxes: Derivatives qualifying as cash flow hedges: Reclassification adjustment to net income, net of tax benefits 454 — — — — 454 Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 7,239 952 810 — (1,762 ) 7,239 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (7,194 ) (951 ) (810 ) — 1,761 (7,194 ) Other comprehensive income (loss), net of taxes 499 1 — — (1 ) 499 Comprehensive income attributable to common shareholder $ 47,608 8,217 8,323 — (16,540 ) $ 47,608 Condensed Consolidating Statement of Comprehensive Income (unaudited) Six months ended June 30, 2016 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Net income for common stock $ 61,224 9,182 9,630 — (18,812 ) $ 61,224 Other comprehensive income, net of taxes: Derivatives qualifying as cash flow hedges: Effective portion of foreign currency hedge net unrealized gain, net of taxes 257 — — — — 257 Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 6,627 859 775 — (1,634 ) 6,627 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (6,623 ) (860 ) (777 ) — 1,637 (6,623 ) Other comprehensive income, net of taxes 261 (1 ) (2 ) — 3 261 Comprehensive income attributable to common shareholder $ 61,485 9,181 9,628 — (18,809 ) $ 61,485 Condensed Consolidating Statement of Comprehensive Income (unaudited) Three months ended June 30, 2016 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Net income for common stock $ 35,857 5,220 5,663 — (10,883 ) $ 35,857 Other comprehensive income (loss), net of taxes: Derivatives qualified as cash flow hedges: Effective portion of foreign currency hedge net unrealized loss, net of tax benefits (745 ) — — — — (745 ) Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 3,391 401 357 — (758 ) 3,391 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (3,401 ) (402 ) (359 ) — 761 (3,401 ) Other comprehensive income (loss), net of taxes (755 ) (1 ) (2 ) — 3 (755 ) Comprehensive income attributable to common shareholder $ 35,102 5,219 5,661 — (10,880 ) $ 35,102 |
Schedule of condensed consolidating balance sheets | Condensed Consolidating Balance Sheet (unaudited) December 31, 2016 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consoli- dating adjustments Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 43,956 6,181 3,016 — — $ 53,153 Plant and equipment 4,241,060 1,255,185 1,109,487 — — 6,605,732 Less accumulated depreciation (1,382,972 ) (507,666 ) (478,644 ) — — (2,369,282 ) Construction in progress 180,194 12,510 19,038 — — 211,742 Utility property, plant and equipment, net 3,082,238 766,210 652,897 — — 4,501,345 Nonutility property, plant and equipment, less accumulated depreciation 5,760 115 1,532 — — 7,407 Total property, plant and equipment, net 3,087,998 766,325 654,429 — — 4,508,752 Investment in wholly owned subsidiaries, at equity 550,946 — — — (550,946 ) — Current assets Cash and cash equivalents 61,388 10,749 2,048 101 — 74,286 Advances to affiliates — 3,500 10,000 — (13,500 ) — Customer accounts receivable, net 86,373 20,055 17,260 — — 123,688 Accrued unbilled revenues, net 65,821 13,564 12,308 — — 91,693 Other accounts receivable, net 7,652 2,445 1,416 — (6,280 ) 5,233 Fuel oil stock, at average cost 47,239 8,229 10,962 — — 66,430 Materials and supplies, at average cost 29,928 7,380 16,371 — — 53,679 Prepayments and other 16,502 5,352 2,179 — (933 ) 23,100 Regulatory assets 60,185 3,483 2,364 — — 66,032 Total current assets 375,088 74,757 74,908 101 (20,713 ) 504,141 Other long-term assets Regulatory assets 662,232 120,863 108,324 — — 891,419 Unamortized debt expense 151 23 34 — — 208 Other 43,743 13,573 13,592 — — 70,908 Total other long-term assets 706,126 134,459 121,950 — — 962,535 Total assets $ 4,720,158 975,541 851,287 101 (571,659 ) $ 5,975,428 Capitalization and liabilities Capitalization Common stock equity $ 1,799,787 291,291 259,554 101 (550,946 ) $ 1,799,787 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 915,437 213,703 190,120 — — 1,319,260 Total capitalization 2,737,517 511,994 454,674 101 (550,946 ) 3,153,340 Current liabilities Short-term borrowings from affiliate 13,500 — — — (13,500 ) — Accounts payable 86,369 18,126 13,319 — — 117,814 Interest and preferred dividends payable 15,761 4,206 2,882 — (11 ) 22,838 Taxes accrued 120,176 28,100 25,387 — (933 ) 172,730 Regulatory liabilities — 2,219 1,543 — — 3,762 Other 41,352 7,637 12,501 — (6,269 ) 55,221 Total current liabilities 277,158 60,288 55,632 — (20,713 ) 372,365 Deferred credits and other liabilities Deferred income taxes 524,433 108,052 100,911 — 263 733,659 Regulatory liabilities 281,112 93,974 31,845 — — 406,931 Unamortized tax credits 57,844 15,994 15,123 — — 88,961 Defined benefit pension and other postretirement benefit plans liability 444,458 75,005 80,263 — — 599,726 Other 49,191 13,024 14,969 — (263 ) 76,921 Total deferred credits and other liabilities 1,357,038 306,049 243,111 — — 1,906,198 Contributions in aid of construction 348,445 97,210 97,870 — — 543,525 Total capitalization and liabilities $ 4,720,158 975,541 851,287 101 (571,659 ) $ 5,975,428 Condensed Consolidating Balance Sheet (unaudited) June 30, 2017 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consoli- dating adjustments Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 43,971 6,191 3,016 — — $ 53,178 Plant and equipment 4,318,460 1,267,529 1,125,429 — — 6,711,418 Less accumulated depreciation (1,423,042 ) (518,266 ) (488,789 ) — — (2,430,097 ) Construction in progress 232,965 16,734 22,739 — — 272,438 Utility property, plant and equipment, net 3,172,354 772,188 662,395 — — 4,606,937 Nonutility property, plant and equipment, less accumulated depreciation 5,763 115 1,532 — — 7,410 Total property, plant and equipment, net 3,178,117 772,303 663,927 — — 4,614,347 Investment in wholly owned subsidiaries, at equity 553,764 — — — (553,764 ) — Current assets Cash and cash equivalents 29,988 7,104 5,389 101 — 42,582 Advances to affiliates — 4,100 1,000 — (5,100 ) — Customer accounts receivable, net 88,614 18,847 18,700 — — 126,161 Accrued unbilled revenues, net 74,640 14,166 14,790 — — 103,596 Other accounts receivable, net 9,707 2,471 1,042 — (9,536 ) 3,684 Fuel oil stock, at average cost 51,489 8,135 12,768 — — 72,392 Materials and supplies, at average cost 30,716 8,852 17,531 — — 57,099 Prepayments and other 25,695 7,294 3,602 — (251 ) 36,340 Regulatory assets 65,891 3,981 4,295 — — 74,167 Total current assets 376,740 74,950 79,117 101 (14,887 ) 516,021 Other long-term assets Regulatory assets 638,480 119,108 106,522 — — 864,110 Unamortized debt expense 497 84 109 — — 690 Other 48,164 13,778 14,045 — — 75,987 Total other long-term assets 687,141 132,970 120,676 — — 940,787 Total assets $ 4,795,762 980,223 863,720 101 (568,651 ) $ 6,071,155 Capitalization and liabilities Capitalization Common stock equity $ 1,803,506 291,760 261,903 101 (553,764 ) $ 1,803,506 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 915,208 213,677 189,960 — — 1,318,845 Total capitalization 2,741,007 512,437 456,863 101 (553,764 ) 3,156,644 Current liabilities Short-term borrowings from non-affiliates 43,990 — — — — 43,990 Short-term borrowings from affiliate 5,100 — — — (5,100 ) — Accounts payable 123,986 19,796 18,593 — — 162,375 Interest and preferred dividends payable 13,584 3,806 2,113 — (6 ) 19,497 Taxes accrued 98,156 23,394 20,964 — (251 ) 142,263 Regulatory liabilities 126 713 2,044 — — 2,883 Other 38,964 8,920 14,786 — (9,530 ) 53,140 Total current liabilities 323,906 56,629 58,500 — (14,887 ) 424,148 Deferred credits and other liabilities Deferred income taxes 542,109 111,616 106,023 — 224 759,972 Regulatory liabilities 297,006 98,844 32,897 — — 428,747 Unamortized tax credits 59,537 16,246 15,603 — — 91,386 Defined benefit pension and other postretirement benefit plans liability 435,614 73,246 78,858 — — 587,718 Other 49,798 13,803 15,959 — (224 ) 79,336 Total deferred credits and other liabilities 1,384,064 313,755 249,340 — — 1,947,159 Contributions in aid of construction 346,785 97,402 99,017 — — 543,204 Total capitalization and liabilities $ 4,795,762 980,223 863,720 101 (568,651 ) $ 6,071,155 |
Schedule of condensed consolidating statement of changes in common stock equity | Condensed Consolidating Statement of Changes in Common Stock Equity (unaudited) Six months ended June 30, 2017 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Balance, December 31, 2016 $ 1,799,787 291,291 259,554 101 (550,946 ) $ 1,799,787 Net income for common stock 47,109 8,216 8,323 — (16,539 ) 47,109 Other comprehensive income, net of taxes 499 1 — — (1 ) 499 Common stock dividends (43,884 ) (7,748 ) (5,973 ) — 13,721 (43,884 ) Common stock issuance expenses (5 ) — (1 ) — 1 (5 ) Balance, June 30, 2017 $ 1,803,506 291,760 261,903 101 (553,764 ) $ 1,803,506 Condensed Consolidating Statement of Changes in Common Stock Equity (unaudited) Six months ended June 30, 2016 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Balance, December 31, 2015 $ 1,728,325 292,702 263,725 101 (556,528 ) $ 1,728,325 Net income for common stock 61,224 9,182 9,630 — (18,812 ) 61,224 Other comprehensive income (loss), net of taxes 261 (1 ) (2 ) — 3 261 Common stock dividends (46,800 ) (6,604 ) (6,530 ) — 13,134 (46,800 ) Common stock issuance expenses (4 ) (4 ) — — 4 (4 ) Balance, June 30, 2016 $ 1,743,006 295,275 266,823 101 (562,199 ) $ 1,743,006 |
Schedule of condensed condensed consolidating statement of cash flows | Condensed Consolidating Statement of Cash Flows (unaudited) Six months ended June 30, 2016 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Cash flows from operating activities Net income $ 61,764 9,449 9,821 — (18,812 ) $ 62,222 Adjustments to reconcile net income to net cash provided by operating activities: Equity in earnings of subsidiaries (18,862 ) — — — 18,812 (50 ) Common stock dividends received from subsidiaries 13,184 — — — (13,134 ) 50 Depreciation of property, plant and equipment 63,044 18,898 11,599 — — 93,541 Other amortization 1,919 911 963 — — 3,793 Deferred income taxes 23,954 2,538 5,623 — 3 32,118 Allowance for equity funds used during construction (2,965 ) (333 ) (438 ) — — (3,736 ) Other 1,383 1,611 (12 ) — — 2,982 Changes in assets and liabilities: Decrease in accounts receivable 14,177 2,007 729 — (231 ) 16,682 Decrease (increase) in accrued unbilled revenues (2,941 ) 634 (908 ) — — (3,215 ) Decrease in fuel oil stock 6,015 924 2,705 — — 9,644 Increase in materials and supplies (1,748 ) (708 ) (26 ) — — (2,482 ) Decrease (increase) in regulatory assets (3,974 ) 2,138 1,159 — — (677 ) Increase in accounts payable 17,150 208 6,069 — — 23,427 Change in prepaid and accrued income taxes, tax credits and revenue taxes (21,371 ) (192 ) (6,626 ) — (3 ) (28,192 ) Increase (decrease) in defined benefit pension and other postretirement benefit plans liability 299 27 (89 ) — — 237 Change in other assets and liabilities (11,803 ) 11 (659 ) — 231 (12,220 ) Net cash provided by operating activities 139,225 38,123 29,910 — (13,134 ) 194,124 Cash flows from investing activities Capital expenditures (152,283 ) (27,436 ) (17,613 ) — — (197,332 ) Contributions in aid of construction 12,824 1,605 2,381 — — 16,810 Other 132 169 30 — — 331 Advances from affiliates — (3,000 ) (11,000 ) — 14,000 — Net cash used in investing activities (139,327 ) (28,662 ) (26,202 ) — 14,000 (180,191 ) Cash flows from financing activities Common stock dividends (46,800 ) (6,604 ) (6,530 ) — 13,134 (46,800 ) Preferred stock dividends of Hawaiian Electric and subsidiaries (540 ) (267 ) (191 ) — — (998 ) Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less 50,995 — — — (14,000 ) 36,995 Other 8 (8 ) — — — — Net cash provided by (used in) financing activities 3,663 (6,879 ) (6,721 ) — (866 ) (10,803 ) Net increase (decrease) in cash and cash equivalents 3,561 2,582 (3,013 ) — — 3,130 Cash and cash equivalents, beginning of period 16,281 2,682 5,385 101 — 24,449 Cash and cash equivalents, end of period $ 19,842 5,264 2,372 101 — $ 27,579 Condensed Consolidating Statement of Cash Flows (unaudited) Six months ended June 30, 2017 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Cash flows from operating activities Net income $ 47,649 8,483 8,514 — (16,539 ) $ 48,107 Adjustments to reconcile net income to net cash provided by operating activities: Equity in earnings of subsidiaries (16,589 ) — — — 16,539 (50 ) Common stock dividends received from subsidiaries 13,771 — — — (13,721 ) 50 Depreciation of property, plant and equipment 65,445 19,371 11,556 — — 96,372 Other amortization 1,875 905 1,482 — — 4,262 Deferred income taxes 15,060 3,590 4,988 — (39 ) 23,599 Allowance for equity funds used during construction (4,715 ) (249 ) (462 ) — — (5,426 ) Other 1,089 699 (173 ) — — 1,615 Changes in assets and liabilities: Decrease (increase) in accounts receivable (5,100 ) 1,182 (1,067 ) — 3,256 (1,729 ) Increase in accrued unbilled revenues (8,819 ) (602 ) (2,482 ) — — (11,903 ) Decrease (increase) in fuel oil stock (4,250 ) 94 (1,806 ) — — (5,962 ) Increase in materials and supplies (788 ) (1,472 ) (1,160 ) — — (3,420 ) Decrease (increase) in regulatory assets 11,378 (1,575 ) (1,624 ) — — 8,179 Increase in accounts payable 39,954 3,291 8,392 — — 51,637 Change in prepaid and accrued income taxes, tax credits and revenue taxes (29,430 ) (6,290 ) (4,725 ) — (465 ) (40,910 ) Increase (decrease) in defined benefit pension and other postretirement benefit plans liability 355 26 (79 ) — — 302 Change in other assets and liabilities (12,727 ) 129 1,807 — (3,256 ) (14,047 ) Net cash provided by operating activities 114,158 27,582 23,161 — (14,225 ) 150,676 Cash flows from investing activities Capital expenditures (153,554 ) (24,744 ) (23,782 ) — — (202,080 ) Contributions in aid of construction 14,078 1,870 1,623 — — 17,571 Other 4,820 619 307 — 504 6,250 Advances from affiliates — (600 ) 9,000 — (8,400 ) — Net cash used in investing activities (134,656 ) (22,855 ) (12,852 ) — (7,896 ) (178,259 ) Cash flows from financing activities Common stock dividends (43,884 ) (7,748 ) (5,973 ) — 13,721 (43,884 ) Preferred stock dividends of Hawaiian Electric and subsidiaries (540 ) (267 ) (191 ) — — (998 ) Proceeds from issuance of special purpose revenue bonds 162,000 28,000 75,000 — 265,000 Funds transferred for redemption of special purpose revenue bonds (162,000 ) (28,000 ) (75,000 ) — — (265,000 ) Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less 35,590 — — — 8,400 43,990 Other (2,068 ) (357 ) (804 ) — — (3,229 ) Net cash used in financing activities (10,902 ) (8,372 ) (6,968 ) — 22,121 (4,121 ) Net increase (decrease) in cash and cash equivalents (31,400 ) (3,645 ) 3,341 — — (31,704 ) Cash and cash equivalents, beginning of period 61,388 10,749 2,048 101 — 74,286 Cash and cash equivalents, end of period $ 29,988 7,104 5,389 101 — $ 42,582 |
Bank segment (Tables)
Bank segment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Bank subsidiary | |
Schedule of statements of income data | Statements of Income Data (unaudited) Three months ended June 30 Six months ended June 30 (in thousands) 2017 2016 2017 2016 Interest and dividend income Interest and fees on loans $ 52,317 $ 49,690 $ 103,059 $ 98,127 Interest and dividends on investment securities 6,763 4,443 13,743 9,460 Total interest and dividend income 59,080 54,133 116,802 107,587 Interest expense Interest on deposit liabilities 2,311 1,691 4,414 3,283 Interest on other borrowings 824 1,467 1,640 2,952 Total interest expense 3,135 3,158 6,054 6,235 Net interest income 55,945 50,975 110,748 101,352 Provision for loan losses 2,834 4,753 6,741 9,519 Net interest income after provision for loan losses 53,111 46,222 104,007 91,833 Noninterest income Fees from other financial services 5,810 5,701 11,420 11,200 Fee income on deposit liabilities 5,565 5,262 10,993 10,418 Fee income on other financial products 1,971 2,207 3,837 4,412 Bank-owned life insurance 1,925 1,006 2,908 2,004 Mortgage banking income 587 1,554 1,376 2,749 Gains on sale of investment securities, net — 598 — 598 Other income, net 391 288 849 621 Total noninterest income 16,249 16,616 31,383 32,002 Noninterest expense Compensation and employee benefits 24,742 21,919 47,979 44,353 Occupancy 4,185 4,115 8,339 8,253 Data processing 3,207 3,277 6,487 6,449 Services 2,766 2,755 5,126 5,666 Equipment 1,771 1,771 3,519 3,434 Office supplies, printing and postage 1,527 1,583 3,062 2,948 Marketing 839 899 1,356 1,760 FDIC insurance 822 913 1,550 1,797 Other expense 4,705 5,382 9,016 9,357 Total noninterest expense 44,564 42,614 86,434 84,017 Income before income taxes 24,796 20,224 48,956 39,818 Income taxes 8,063 6,939 16,410 13,860 Net income $ 16,733 $ 13,285 $ 32,546 $ 25,958 |
Schedule of statements of comprehensive income data | Statements of Comprehensive Income Data (unaudited) Three months ended June 30 Six months ended June 30 (in thousands) 2017 2016 2017 2016 Net income $ 16,733 $ 13,285 $ 32,546 $ 25,958 Other comprehensive income, net of taxes: Net unrealized gains on available-for-sale investment securities: Net unrealized gains on available-for-sale investment securities arising during the period, net of taxes of $1,334, $1,925, $1,482 and $6,830, respectively 2,021 2,915 2,244 10,344 Reclassification adjustment for net realized gains included in net income, net of taxes of nil, $238, nil and $238, respectively — (360 ) — (360 ) Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $133, $140, $537 and $277, respectively 202 211 814 419 Other comprehensive income, net of taxes 2,223 2,766 3,058 10,403 Comprehensive income $ 18,956 $ 16,051 $ 35,604 $ 36,361 |
Schedule of balance sheets data | Balance Sheets Data (unaudited) (in thousands) June 30, 2017 December 31, 2016 Assets Cash and due from banks $ 128,609 $ 137,083 Interest-bearing deposits 37,049 52,128 Restricted cash — 1,764 Available-for-sale investment securities, at fair value 1,302,886 1,105,182 Stock in Federal Home Loan Bank, at cost 11,706 11,218 Loans receivable held for investment 4,744,634 4,738,693 Allowance for loan losses (56,356 ) (55,533 ) Net loans 4,688,278 4,683,160 Loans held for sale, at lower of cost or fair value 5,261 18,817 Other 354,898 329,815 Goodwill 82,190 82,190 Total assets $ 6,610,877 $ 6,421,357 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 1,694,150 $ 1,639,051 Deposit liabilities—interest-bearing 4,030,236 3,909,878 Other borrowings 188,130 192,618 Other 101,974 101,635 Total liabilities 6,014,490 5,843,182 Commitments and contingencies Common stock 1 1 Additional paid in capital 344,062 342,704 Retained earnings 271,739 257,943 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (5,687 ) $ (7,931 ) Retirement benefit plans (13,728 ) (19,415 ) (14,542 ) (22,473 ) Total shareholder’s equity 596,387 578,175 Total liabilities and shareholder’s equity $ 6,610,877 $ 6,421,357 Other assets Bank-owned life insurance $ 146,122 $ 143,197 Premises and equipment, net 108,158 90,570 Prepaid expenses 4,632 3,348 Accrued interest receivable 16,949 16,824 Mortgage-servicing rights 9,181 9,373 Low-income housing equity investments 48,596 47,081 Real estate acquired in settlement of loans, net 1,554 1,189 Other 19,706 18,233 $ 354,898 $ 329,815 Other liabilities Accrued expenses $ 34,451 $ 36,754 Federal and state income taxes payable 6,336 4,728 Cashier’s checks 24,191 24,156 Advance payments by borrowers 10,334 10,335 Other 26,662 25,662 $ 101,974 $ 101,635 |
Schedule of the book value and aggregate fair value by major security type | The major components of investment securities were as follows: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Gross unrealized losses Less than 12 months 12 months or longer (dollars in thousands) Number of issues Fair value Amount Number of issues Fair value Amount June 30, 2017 Available-for-sale U.S. Treasury and federal agency obligations $ 187,289 $ 947 $ (1,653 ) $ 186,583 16 $ 104,417 $ (1,532 ) 1 $ 3,186 $ (121 ) Mortgage-related securities- FNMA, FHLMC and GNMA 1,109,613 2,202 (10,939 ) 1,100,876 98 759,643 (9,658 ) 13 43,296 (1,281 ) Mortgage revenue bond 15,427 — — 15,427 — — — — — — $ 1,312,329 $ 3,149 $ (12,592 ) $ 1,302,886 114 $ 864,060 $ (11,190 ) 14 $ 46,482 $ (1,402 ) December 31, 2016 Available-for-sale U.S. Treasury and federal agency obligations $ 193,515 $ 920 $ (2,154 ) $ 192,281 18 $ 123,475 $ (2,010 ) 1 $ 3,485 $ (144 ) Mortgage-related securities- FNMA, FHLMC and GNMA 909,408 1,742 (13,676 ) 897,474 88 709,655 (12,143 ) 13 47,485 (1,533 ) Mortgage revenue bond 15,427 — — 15,427 — — — — — — $ 1,118,350 $ 2,662 $ (15,830 ) $ 1,105,182 106 $ 833,130 $ (14,153 ) 14 $ 50,970 $ (1,677 ) |
Schedule of contractual maturities of available-for-sale securities | The contractual maturities of available-for-sale investment securities were as follows: June 30, 2017 Amortized cost Fair value (in thousands) Due in one year or less $ 9,992 $ 9,993 Due after one year through five years 77,151 77,307 Due after five years through ten years 85,724 85,258 Due after ten years 29,849 29,452 202,716 202,010 Mortgage-related securities-FNMA, FHLMC and GNMA 1,109,613 1,100,876 Total available-for-sale securities $ 1,312,329 $ 1,302,886 |
Schedule of components of loans receivable | The components of loans receivable were summarized as follows: June 30, 2017 December 31, 2016 (in thousands) Real estate: Residential 1-4 family $ 2,061,549 $ 2,048,051 Commercial real estate 808,900 800,395 Home equity line of credit 883,135 863,163 Residential land 16,009 18,889 Commercial construction 116,548 126,768 Residential construction 10,759 16,080 Total real estate 3,896,900 3,873,346 Commercial 649,657 692,051 Consumer 201,199 178,222 Total loans 4,747,756 4,743,619 Less: Deferred fees and discounts (3,122 ) (4,926 ) Allowance for loan losses (56,356 ) (55,533 ) Total loans, net $ 4,688,278 $ 4,683,160 |
Schedule of allowance for loan losses | The allowance for loan losses (balances and changes) and financing receivables were as follows: (in thousands) Residential 1-4 family Commercial real estate Home Residential land Commercial construction Residential construction Commercial loans Consumer loans Unallo-cated Total Three months ended June 30, 2017 Allowance for loan losses: Beginning balance $ 2,781 $ 16,504 $ 5,417 $ 1,479 $ 7,257 $ 11 $ 14,902 $ 7,646 $ — $ 55,997 Charge-offs — — — (92 ) — — (752 ) (2,390 ) — (3,234 ) Recoveries 49 — 39 15 — — 299 357 — 759 Provision 300 2,336 71 (138 ) (2,551 ) (2 ) 103 2,715 — 2,834 Ending balance $ 3,130 $ 18,840 $ 5,527 $ 1,264 $ 4,706 $ 9 $ 14,552 $ 8,328 $ — $ 56,356 Three months ended June 30, 2016 Allowance for loan losses: Beginning balance $ 4,593 $ 11,806 $ 7,172 $ 1,740 $ 6,164 $ 12 $ 16,991 $ 3,848 $ — $ 52,326 Charge-offs (15 ) — — — — — (962 ) (1,528 ) — (2,505 ) Recoveries 35 — 16 16 — — 425 265 — 757 Provision (229 ) 1,755 648 (67 ) 829 — 631 1,186 — 4,753 Ending balance $ 4,384 $ 13,561 $ 7,836 $ 1,689 $ 6,993 $ 12 $ 17,085 $ 3,771 $ — $ 55,331 Six months ended June 30, 2017 Allowance for loan losses: Beginning balance $ 2,873 $ 16,004 $ 5,039 $ 1,738 $ 6,449 $ 12 $ 16,618 $ 6,800 $ — $ 55,533 Charge-offs (6 ) — (14 ) (92 ) — — (2,262 ) (5,200 ) — (7,574 ) Recoveries 58 — 130 218 — — 596 654 — 1,656 Provision 205 2,836 372 (600 ) (1,743 ) (3 ) (400 ) 6,074 — 6,741 Ending balance $ 3,130 $ 18,840 $ 5,527 $ 1,264 $ 4,706 $ 9 $ 14,552 $ 8,328 $ — $ 56,356 June 30, 2017 Ending balance: individually evaluated for impairment $ 1,332 $ 73 $ 275 $ 480 $ — $ — $ 939 $ 30 $ 3,129 Ending balance: collectively evaluated for impairment $ 1,798 $ 18,767 $ 5,252 $ 784 $ 4,706 $ 9 $ 13,613 $ 8,298 $ — $ 53,227 Financing Receivables: Ending balance $ 2,061,549 $ 808,900 $ 883,135 $ 16,009 $ 116,548 $ 10,759 $ 649,657 $ 201,199 $ 4,747,756 Ending balance: individually evaluated for impairment $ 19,188 $ 1,289 $ 6,684 $ 2,589 $ — $ — $ 4,283 $ 68 $ 34,101 Ending balance: collectively evaluated for impairment $ 2,042,361 $ 807,611 $ 876,451 $ 13,420 $ 116,548 $ 10,759 $ 645,374 $ 201,131 $ 4,713,655 Six months ended June 30, 2016 Allowance for loan losses: Beginning balance $ 4,186 $ 11,342 $ 7,260 $ 1,671 $ 4,461 $ 13 $ 17,208 $ 3,897 $ — $ 50,038 Charge-offs (60 ) — — — — — (2,305 ) (3,098 ) — (5,463 ) Recoveries 52 — 31 119 — — 560 475 — 1,237 Provision 206 2,219 545 (101 ) 2,532 (1 ) 1,622 2,497 — 9,519 Ending balance $ 4,384 $ 13,561 $ 7,836 $ 1,689 $ 6,993 $ 12 $ 17,085 $ 3,771 $ — $ 55,331 December 31, 2016 Ending balance: individually evaluated for impairment $ 1,352 $ 80 $ 215 $ 789 $ — $ — $ 1,641 $ 6 $ 4,083 Ending balance: collectively evaluated for impairment $ 1,521 $ 15,924 $ 4,824 $ 949 $ 6,449 $ 12 $ 14,977 $ 6,794 $ — $ 51,450 Financing Receivables: Ending balance $ 2,048,051 $ 800,395 $ 863,163 $ 18,889 $ 126,768 $ 16,080 $ 692,051 $ 178,222 $ 4,743,619 Ending balance: individually evaluated for impairment $ 19,854 $ 1,569 $ 6,158 $ 3,629 $ — $ — $ 20,539 $ 10 $ 51,759 Ending balance: collectively evaluated for impairment $ 2,028,197 $ 798,826 $ 857,005 $ 15,260 $ 126,768 $ 16,080 $ 671,512 $ 178,212 $ 4,691,860 |
Schedule of credit risk profile by internally assigned grade for loans | The credit risk profile by internally assigned grade for loans was as follows: June 30, 2017 December 31, 2016 (in thousands) Commercial real estate Commercial construction Commercial Commercial real estate Commercial construction Commercial Grade: Pass $ 660,015 $ 92,069 $ 602,903 $ 701,657 $ 102,955 $ 614,139 Special mention 95,656 22,500 19,429 65,541 — 25,229 Substandard 53,229 1,979 27,325 33,197 23,813 52,683 Doubtful — — — — — — Loss — — — — — — Total $ 808,900 $ 116,548 $ 649,657 $ 800,395 $ 126,768 $ 692,051 |
Schedule of credit risk profile based on payment activity for loans | The credit risk profile based on payment activity for loans was as follows: (in thousands) 30-59 days past due 60-89 days past due Greater than 90 days Total past due Current Total financing receivables Recorded investment> 90 days and accruing June 30, 2017 Real estate: Residential 1-4 family $ 2,308 $ 2,694 $ 5,411 $ 10,413 $ 2,051,136 $ 2,061,549 $ — Commercial real estate — — — — 808,900 808,900 — Home equity line of credit 502 494 1,516 2,512 880,623 883,135 — Residential land — — 305 305 15,704 16,009 — Commercial construction — — — — 116,548 116,548 — Residential construction — — — — 10,759 10,759 — Commercial 1,486 614 1,096 3,196 646,461 649,657 — Consumer 2,266 1,305 863 4,434 196,765 201,199 — Total loans $ 6,562 $ 5,107 $ 9,191 $ 20,860 $ 4,726,896 $ 4,747,756 $ — December 31, 2016 Real estate: Residential 1-4 family $ 5,467 $ 2,338 $ 3,505 $ 11,310 $ 2,036,741 $ 2,048,051 $ — Commercial real estate 2,416 — — 2,416 797,979 800,395 — Home equity line of credit 1,263 381 1,342 2,986 860,177 863,163 — Residential land — — 255 255 18,634 18,889 — Commercial construction — — — — 126,768 126,768 — Residential construction — — — — 16,080 16,080 — Commercial 413 510 1,303 2,226 689,825 692,051 — Consumer 1,945 1,001 963 3,909 174,313 178,222 — Total loans $ 11,504 $ 4,230 $ 7,368 $ 23,102 $ 4,720,517 $ 4,743,619 $ — |
Schedule of credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due | The credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due and TDR loans was as follows: (in thousands) June 30, 2017 December 31, 2016 Real estate: Residential 1-4 family $ 12,270 $ 11,154 Commercial real estate — 223 Home equity line of credit 4,306 3,080 Residential land 915 878 Commercial construction — — Residential construction — — Commercial 1,972 6,708 Consumer 1,501 1,282 Total nonaccrual loans $ 20,964 $ 23,325 Real estate: Residential 1-4 family $ — $ — Commercial real estate — — Home equity line of credit — — Residential land — — Commercial construction — — Residential construction — — Commercial — — Consumer — — Total accruing loans 90 days or more past due $ — $ — Real estate: Residential 1-4 family $ 13,112 $ 14,450 Commercial real estate 1,289 1,346 Home equity line of credit 4,548 4,934 Residential land 1,674 2,751 Commercial construction — — Residential construction — — Commercial 2,692 14,146 Consumer 68 10 Total troubled debt restructured loans not included above $ 23,383 $ 37,637 |
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 were as follows: June 30, 2017 Three months ended June 30, 2017 Six months ended June 30, 2017 (in thousands) Recorded investment Unpaid principal balance Related Allowance Average recorded investment Interest income recognized* Average recorded investment Interest income recognized* With no related allowance recorded Real estate: Residential 1-4 family $ 9,364 $ 9,963 $ — $ 9,304 $ 76 $ 9,429 $ 160 Commercial real estate — — — 143 11 182 11 Home equity line of credit 2,287 2,707 — 2,401 51 2,203 65 Residential land 1,249 1,788 — 1,075 8 1,016 34 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 1,592 4,267 — 1,949 2 3,428 8 Consumer — — — 1 — — — $ 14,492 $ 18,725 $ — $ 14,873 $ 148 $ 16,258 $ 278 With an allowance recorded Real estate: Residential 1-4 family $ 9,824 $ 10,027 $ 1,332 $ 10,054 $ 117 $ 10,051 $ 236 Commercial real estate 1,289 1,289 73 1,292 14 1,296 28 Home equity line of credit 4,397 4,425 275 4,372 47 4,467 96 Residential land 1,340 1,340 480 1,532 24 1,804 61 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 2,691 2,691 939 2,562 68 4,915 469 Consumer 68 68 30 68 1 49 1 $ 19,609 $ 19,840 $ 3,129 $ 19,880 $ 271 $ 22,582 $ 891 Total Real estate: Residential 1-4 family $ 19,188 $ 19,990 $ 1,332 $ 19,358 $ 193 $ 19,480 $ 396 Commercial real estate 1,289 1,289 73 1,435 25 1,478 39 Home equity line of credit 6,684 7,132 275 6,773 98 6,670 161 Residential land 2,589 3,128 480 2,607 32 2,820 95 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 4,283 6,958 939 4,511 70 8,343 477 Consumer 68 68 30 69 1 49 1 $ 34,101 $ 38,565 $ 3,129 $ 34,753 $ 419 $ 38,840 $ 1,169 December 31, 2016 Three months ended June 30, 2016 Six months ended June 30, 2016 (in thousands) Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized* Average recorded investment Interest income recognized* With no related allowance recorded Real estate: Residential 1-4 family $ 9,571 $ 10,400 $ — $ 10,672 $ 152 $ 10,532 $ 203 Commercial real estate 223 228 — 1,152 — 1,163 — Home equity line of credit 1,500 1,900 — 1,038 9 943 9 Residential land 1,218 1,803 — 1,484 15 1,537 31 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 6,299 8,869 — 8,369 7 5,818 13 Consumer — — — — — — — $ 18,811 $ 23,200 $ — $ 22,715 $ 183 $ 19,993 $ 256 With an allowance recorded Real estate: Residential 1-4 family $ 10,283 $ 10,486 $ 1,352 $ 11,982 $ 115 $ 12,000 $ 237 Commercial real estate 1,346 1,346 80 2,519 — 1,686 — Home equity line of credit 4,658 4,712 215 3,299 28 3,122 55 Residential land 2,411 2,411 789 2,977 54 3,177 121 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 14,240 14,240 1,641 16,821 180 16,896 210 Consumer 10 10 6 12 — 12 — $ 32,948 $ 33,205 $ 4,083 $ 37,610 $ 377 $ 36,893 $ 623 Total Real estate: Residential 1-4 family $ 19,854 $ 20,886 $ 1,352 $ 22,654 $ 267 $ 22,532 $ 440 Commercial real estate 1,569 1,574 80 3,671 — 2,849 — Home equity line of credit 6,158 6,612 215 4,337 37 4,065 64 Residential land 3,629 4,214 789 4,461 69 4,714 152 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 20,539 23,109 1,641 25,190 187 22,714 223 Consumer 10 10 6 12 — 12 — $ 51,759 $ 56,405 $ 4,083 $ 60,325 $ 560 $ 56,886 $ 879 * Since loan was classified as impaired. |
Schedule of loan modifications | Loan modifications that occurred during the second quarters and first six months of 2017 and 2016 and the impact on the allowance for loan losses were as follows: Three months ended June 30, 2017 Six months ended June 30, 2017 Number of contracts Outstanding recorded investment 1 Net increase in allowance Number of contracts Outstanding recorded investment 1 Net increase in allowance (dollars in thousands) Pre-modification Post-modification (as of period end) Pre-modification Post-modification (as of period end) Troubled debt restructurings Real estate: Residential 1-4 family 2 $ 360 $ 360 $ — 5 $ 872 $ 880 $ 45 Commercial real estate — — — — — — — — Home equity line of credit 5 298 298 59 13 524 510 93 Residential land — — — — — — — — Commercial construction — — — — — — — — Residential construction — — — — — — — — Commercial — — — — 1 342 342 — Consumer — — — — 1 59 59 27 7 $ 658 $ 658 $ 59 20 $ 1,797 $ 1,791 $ 165 Three months ended June 30, 2016 Six months ended June 30, 2016 Number of contracts Outstanding recorded 1 Net increase in allowance Number of contracts Outstanding recorded 1 Net increase in allowance (dollars in thousands) Pre-modification Post-modification (as of period end) Pre-modification Post-modification (as of period end) Troubled debt restructurings Real estate: Residential 1-4 family 5 $ 891 $ 885 $ 98 9 $ 1,988 $ 2,100 $ 259 Commercial real estate — — — — — — — — Home equity line of credit 8 768 768 181 18 1,437 1,437 255 Residential land 1 120 121 — 1 120 121 — Commercial construction — — — — — — — — Residential construction — — — — — — — — Commercial 5 457 457 145 8 16,657 16,657 670 Consumer — — — — — — — — 19 $ 2,236 $ 2,231 $ 424 36 $ 20,202 $ 20,315 $ 1,184 1 The reported balances include loans that became TDR during the period, and were fully paid-off, charged-off, or sold prior to period end. |
Schedule of troubled debt restructuring on financing receivables that experienced default | Loans modified in TDRs that experienced a payment default of 90 days or more during the second quarters and first six months of 2017 and 2016, and for which the payment of default occurred within one year of the modification, were as follows: Three months ended June 30, 2017 Six months ended June 30, 2017 (dollars in thousands) Number of contracts Recorded investment Number of contracts Recorded investment Troubled debt restructurings that subsequently defaulted Real estate: Residential 1-4 family 1 $ 222 2 $ 523 Commercial real estate — — — — Home equity line of credit — — — — Residential land — — — — Commercial construction — — — — Residential construction — — — — Commercial — — — — Consumer — — — — 1 $ 222 2 $ 523 Three months ended June 30, 2016 Six months ended June 30, 2016 (dollars in thousands) Number of contracts Recorded investment Number of contracts Recorded investment Troubled debt restructurings that Real estate: Residential 1-4 family — $ — 1 $ 488 Commercial real estate — — — — Home equity line of credit — — — — Residential land — — — — Commercial construction — — — — Residential construction — — — — Commercial 1 26 1 26 Consumer — — — — 1 $ 26 2 $ 514 |
Schedule of amortized intangible assets | Changes in the carrying value of mortgage servicing rights were as follows: (in thousands) Gross 1 Accumulated amortization 1 Valuation allowance Net June 30, 2017 $ 18,069 $ (8,888 ) $ — $ 9,181 December 31, 2016 17,271 (7,898 ) — 9,373 1 Reflects the impact of loans paid in full. Changes related to mortgage servicing rights were as follows: Three months ended June 30 Six months ended June 30 (in thousands) 2017 2016 2017 2016 Mortgage servicing rights Beginning balance $ 9,294 $ 8,857 $ 9,373 $ 8,884 Amount capitalized 362 665 798 1,120 Amortization (475 ) (506 ) (990 ) (988 ) Other-than-temporary impairment — — — — Carrying amount before valuation allowance 9,181 9,016 9,181 9,016 Valuation allowance for mortgage servicing rights Beginning balance — — — — Provision (recovery) — — — — Other-than-temporary impairment — — — — Ending balance — — — — Net carrying value of mortgage servicing rights $ 9,181 $ 9,016 $ 9,181 $ 9,016 |
Schedule of key assumptions used in estimating fair value | Key assumptions used in estimating the fair value of ASB’s mortgage servicing rights used in the impairment analysis were as follows: (dollars in thousands) June 30, 2017 December 31, 2016 Unpaid principal balance $ 1,208,404 $ 1,188,380 Weighted average note rate 3.95 % 3.96 % Weighted average discount rate 10.0 % 9.4 % Weighted average prepayment speed 8.8 % 8.5 % The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) ($ in thousands) Fair value Valuation technique Significant unobservable input Range Weighted Average June 30, 2017 Residential loan $ 448 Fair value of collateral Appraised value less 7% selling cost N/A (2) Commercial loan 810 Sales price Sales price N/A (2) Total loans $ 1,258 December 31, 2016 Residential loans $ 2,468 Sales price Sales price 95-100% 97% Residential loans 287 Fair value of property or collateral Appraised value less 7% selling cost 42-65% 61% Home equity lines of credit 12 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Total loans $ 2,767 Real estate acquired in settlement of loans $ 1,189 Fair value of property or collateral Appraised value less 7% selling cost 100% 100% (1) Represent percent of outstanding principal balance. (2) N/A - Not applicable. There is one loan in each fair value measurement type. |
Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets | The sensitivity analysis of fair value of MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows: (dollars in thousands) June 30, 2017 December 31, 2016 Prepayment rate: 25 basis points adverse rate change $ (939 ) $ (567 ) 50 basis points adverse rate change (2,048 ) (1,154 ) Discount rate: 25 basis points adverse rate change (115 ) (128 ) 50 basis points adverse rate change (227 ) (254 ) |
Schedule of securities sold under agreements to repurchase | The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties: (in millions) Gross amount of recognized liabilities Gross amount offset in the Balance Sheet Net amount of liabilities presented in the Balance Sheet Repurchase agreements June 30, 2017 $88 $— $88 December 31, 2016 93 — 93 Gross amount not offset in the Balance Sheet (in millions) Net amount of liabilities presented in the Balance Sheet Financial instruments Cash collateral pledged June 30, 2017 Financial institution $ — $ — $ — Government entities — — — Commercial account holders 88 120 — Total $ 88 $ 120 $ — December 31, 2016 Financial institution $ — $ — $ — Government entities 14 15 — Commercial account holders 79 101 — Total $ 93 $ 116 $ — |
Schedule of notional and fair value of derivatives | The notional amount and fair value of ASB’s derivative financial instruments were as follows: June 30, 2017 December 31, 2016 (in thousands) Notional amount Fair value Notional amount Fair value Interest rate lock commitments $ 22,737 $ 126 $ 25,883 $ 421 Forward commitments 22,925 88 30,813 (177 ) |
Schedule of derivative financial instruments | ASB’s derivative financial instruments, their fair values and balance sheet location were as follows: Derivative Financial Instruments Not Designated as Hedging Instruments 1 June 30, 2017 December 31, 2016 (in thousands) Asset derivatives Liability derivatives Asset derivatives Liability Interest rate lock commitments $ 142 $ 16 $ 445 $ 24 Forward commitments 88 — 8 185 $ 230 $ 16 $ 453 $ 209 1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the balance sheets. |
Schedule of derivative financial instruments and net gain or loss | The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in ASB’s statements of income: Derivative Financial Instruments Not Designated as Hedging Instruments Location of net gains (losses) recognized in the Statement of Income Three months ended June 30 Six months ended June 30 (in thousands) 2017 2016 2017 2016 Interest rate lock commitments Mortgage banking income $ (191 ) $ 140 $ (295 ) $ 411 Forward commitments Mortgage banking income 192 (74 ) 265 (237 ) $ 1 $ 66 $ (30 ) $ 174 |
Credit agreements and long-te25
Credit agreements and long-term debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Changes in Long-term Debt | On June 29, 2017, the Department of Budget and Finance of the State of Hawaii (Department) for the benefit of the Utilities, issued, at par: Refunding Series 2017A Special Purpose Revenue Bonds Refunding Series 2017B Special Purpose Revenue Bonds Aggregate principal amount $125 million $140 million Fixed coupon interest rate 3.10% 4.00% Maturity date May 1, 2026 March 1, 2037 Department loaned the proceeds to: Hawaiian Electric $62 million $100 million Hawaii Electric Light $8 million $20 million Maui Electric $55 million $20 million Proceeds from the sale were applied to redeem at par bonds previously issued by the Department for the benefit of the Utilities: Refunding Series 2007B Special Purpose Revenue Bonds Series 2007A Special Purpose Revenue Bonds Aggregate principal amount $125 million $140 million Fixed coupon interest rate 4.60% 4.65% Maturity date May 1, 2026 March 1, 2037 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of 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 gains (losses) on derivatives Retirement benefit plans AOCI Unrealized gains (losses) on derivatives Retirement benefit plans AOCI Balance, December 31, 2016 $ (7,931 ) $ (454 ) $ (24,744 ) $ (33,129 ) $ (454 ) $ 132 $ (322 ) Current period other comprehensive income 2,244 454 657 3,355 454 45 499 Balance, June 30, 2017 $ (5,687 ) $ — $ (24,087 ) $ (29,774 ) $ — $ 177 $ 177 Balance, December 31, 2015 $ (1,872 ) $ (54 ) $ (24,336 ) $ (26,262 ) $ — $ 925 $ 925 Current period other comprehensive income 9,984 311 613 10,908 257 4 261 Balance, June 30, 2016 $ 8,112 $ 257 $ (23,723 ) $ (15,354 ) $ 257 $ 929 $ 1,186 |
Schedule of reclassifications out of accumulated other comprehensive income/(loss) | Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Amount reclassified from AOCI Three months ended June 30 Six months ended June 30 Affected line item in the (in thousands) 2017 2016 2017 2016 Statements of Income / Balance Sheets HEI consolidated Net realized gains on securities included in net income $ — $ (360 ) $ — $ (360 ) Revenues-bank (net gains on sales of securities) Derivatives qualifying as cash flow hedges: Window forward contracts — — 454 — Construction in progress-electric utilities (losses on window forward contracts - see Note 3 for additional details) Interest rate contracts (settled in 2011) — — — 54 Interest expense Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 3,930 3,698 7,851 7,236 See Note 7 for additional details Impact of D&Os of the PUC included in regulatory assets (3,581 ) (3,401 ) (7,194 ) (6,623 ) See Note 7 for additional details Total reclassifications $ 349 $ (63 ) $ 1,111 $ 307 Hawaiian Electric consolidated Derivatives qualifying as cash flow hedges: Window forward contracts $ — $ — $ 454 $ — Construction in progress (losses on window forward contracts - see Note 3 for additional details) Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 3,621 3,391 7,239 6,627 See Note 7 for additional details Impact of D&Os of the PUC included in regulatory assets (3,581 ) (3,401 ) (7,194 ) (6,623 ) See Note 7 for additional details Total reclassifications $ 40 $ (10 ) $ 499 $ 4 |
Retirement benefits (Tables)
Retirement benefits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of components of net periodic benefit cost for consolidated HEI | The components of NPPC and NPBC for HEI consolidated and Hawaiian Electric consolidated were as follows: Three months ended June 30 Six months ended June 30 Pension benefits Other benefits Pension benefits Other benefits (in thousands) 2017 2016 2017 2016 2017 2016 2017 2016 HEI consolidated Service cost $ 15,870 $ 14,913 $ 847 $ 832 $ 32,364 $ 30,304 $ 1,687 $ 1,668 Interest cost 20,361 20,481 2,315 2,363 40,577 40,758 4,726 4,837 Expected return on plan assets (25,646 ) (24,616 ) (3,104 ) (3,091 ) (51,367 ) (49,280 ) (6,170 ) (6,143 ) Amortization of net prior service gain (13 ) (14 ) (448 ) (448 ) (27 ) (28 ) (897 ) (896 ) Amortization of net actuarial loss 6,707 6,408 199 116 13,220 12,377 565 403 Net periodic pension/benefit cost 17,279 17,172 (191 ) (228 ) 34,767 34,131 (89 ) (131 ) Impact of PUC D&Os (4,867 ) (4,765 ) 527 483 (10,023 ) (8,811 ) 673 672 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 12,412 $ 12,407 $ 336 $ 255 $ 24,744 $ 25,320 $ 584 $ 541 Hawaiian Electric consolidated Service cost $ 15,436 $ 14,465 $ 841 $ 820 $ 31,530 $ 29,398 $ 1,676 $ 1,642 Interest cost 18,726 18,801 2,231 2,280 37,315 37,404 4,558 4,669 Expected return on plan assets (23,935 ) (22,885 ) (3,056 ) (3,046 ) (47,946 ) (45,817 ) (6,073 ) (6,049 ) Amortization of net prior service loss (gain) 2 3 (451 ) (451 ) 4 7 (902 ) (902 ) Amortization of net actuarial loss 6,190 5,885 192 113 12,196 11,346 551 397 Net periodic pension/benefit cost 16,419 16,269 (243 ) (284 ) 33,099 32,338 (190 ) (243 ) Impact of PUC D&Os (4,867 ) (4,765 ) 527 483 (10,023 ) (8,811 ) 673 672 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 11,552 $ 11,504 $ 284 $ 199 $ 23,076 $ 23,527 $ 483 $ 429 |
Share-based compensation (Table
Share-based compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30 Six months ended June 30 (in millions) 2017 2016 2017 2016 HEI consolidated Share-based compensation expense 1 $ 2.2 $ 1.0 $ 3.3 $ 2.0 Income tax benefit 0.8 0.4 1.2 0.7 Hawaiian Electric consolidated Share-based compensation expense 1 0.7 0.3 1.1 0.6 Income tax benefit 0.3 0.1 0.4 0.2 1 For the three months and six months ended June 30, 2017 and 2016, the Company has not capitalized any share-based compensation. |
Schedule of common stock granted to a nonemployee director under the 2011 Director Plan | HEI granted HEI common stock to nonemployee directors of HEI, Hawaiian Electric and ASB under the 2011 Director Plan as follows: Three months ended June 30 Six months ended June 30 ($ in millions) 2017 2016 2017 2016 Shares granted 35,000 — 35,770 — Fair value $ 1.1 $ — $ 1.2 $ — Income tax benefit 0.4 — 0.5 — |
Schedule of restricted stock units | Information about HEI’s grants of restricted stock units was as follows: Three months ended June 30 Six months ended June 30 2017 2016 2017 2016 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 236,036 $ 31.42 226,537 $ 29.59 220,683 $ 29.57 210,634 $ 28.82 Granted 896 33.06 — — 97,873 33.47 94,282 29.90 Vested (7,370 ) 29.17 (785 ) 27.88 (88,994 ) 28.88 (79,164 ) 27.91 Forfeited (23,079 ) 31.50 — — (23,079 ) 31.50 — — Outstanding, end of period 206,483 $ 31.50 225,752 $ 29.59 206,483 $ 31.50 225,752 $ 29.59 Total weighted-average grant-date fair value of shares granted ($ millions) $ — $ — $ 3.3 $ 2.8 (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 | Information about HEI’s LTIP grants linked to TSR was as follows: Three months ended June 30 Six months ended June 30 2017 2016 2017 2016 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 36,971 $ 39.51 83,947 $ 22.95 83,106 $ 22.95 162,500 $ 27.66 Granted (target level) 233 39.51 — — 37,204 39.51 — — Vested (issued or unissued and cancelled) — — — — (83,106 ) 22.95 (78,553 ) 32.69 Forfeited (3,434 ) 39.51 — — (3,434 ) 39.51 — — Outstanding, end of period 33,770 $ 39.51 83,947 $ 22.95 33,770 $ 39.51 83,947 $ 22.95 Total weighted-average grant-date fair value of shares granted ($ millions) $ — $ — $ 1.5 $ — (1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. |
Schedule of Long-Term Incentive Program fair value awards granted | The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TSR and the resulting fair value of LTIP awards granted: 2017 Risk-free interest rate 1.46 % Expected life in years 3 Expected volatility 20.1 % Range of expected volatility for Peer Group 15.4% to 26.0% Grant date fair value (per share) $39.51 |
Schedule of Long-Term Incentive Plan (LTIP) 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 June 30 Six months ended June 30 2017 2016 2017 2016 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 147,888 $ 33.48 113,550 $ 25.18 109,816 $ 25.18 222,647 $ 26.02 Granted (target level) 930 32.58 — — 148,818 33.47 — — Vested (issued) — — — — (109,816 ) 25.18 (109,097 ) 26.89 Forfeited (13,740 ) 33.48 — — (13,740 ) 33.48 — — Outstanding, end of period 135,078 $ 33.47 113,550 $ 25.18 135,078 $ 33.47 113,550 $ 25.18 Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions) $ — $ — $ 5.0 $ — (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Cash flows (Tables)
Cash flows (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash and noncash activity | Six months ended June 30 2017 2016 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates $ 46 $ 43 Income taxes paid (including refundable credits) 21 14 Income taxes refunded (including refundable credits) — 45 Hawaiian Electric consolidated Interest paid to non-affiliates 36 31 Income taxes paid (including refundable credits) 8 — Income taxes refunded (including refundable credits) — 20 Supplemental disclosures of noncash activities HEI consolidated Common stock dividends reinvested in HEI common stock (financing) 1 — 11 Loans transferred from held for investment to held for sale (investing) 9 — Common stock issued (gross) for director and executive/management compensation (financing) 2 11 6 HEI consolidated and Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 2 8 Change in unpaid invoices and accruals for capital expenditures (investing) (7 ) (32 ) 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. 2 The amounts shown represent the market value of common stock issued for director and executive/management compensation and withheld to satisfy statutory tax liabilities. |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of estimated fair values of certain of the Company's financial instruments | The following table presents the carrying or notional amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments. For stock in Federal Home Loan Bank, the carrying amount is a reasonable estimate of fair value because it can only be redeemed at par. For bank-owned life insurance, the carrying amount is the cash surrender value of the insurance policies, which is a reasonable estimate of fair value. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings and money market deposits, the carrying amount is a reasonable estimate of fair value as these liabilities have no stated maturity. Estimated fair value Carrying or notional amount Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (in thousands) (Level 1) (Level 2) (Level 3) Total June 30, 2017 Financial assets HEI consolidated Available-for-sale investment securities $ 1,302,886 $ — $ 1,287,459 $ 15,427 $ 1,302,886 Stock in Federal Home Loan Bank 11,706 — 11,706 — 11,706 Loans receivable, net 4,693,539 — 5,261 4,836,804 4,842,065 Mortgage servicing rights 9,181 — — 12,270 12,270 Bank-owned life insurance 146,122 — 146,122 — 146,122 Derivative assets 58,120 47 798 — 845 Hawaiian Electric consolidated Derivative assets-window forward contracts 15,995 — 615 — 615 Financial liabilities HEI consolidated Deposit liabilities 5,724,386 — 5,721,882 — 5,721,882 Short-term borrowings—other than bank 49,789 — 49,789 — 49,789 Other bank borrowings 188,130 — 188,513 — 188,513 Long-term debt, net—other than bank 1,618,647 — 1,740,479 — 1,740,479 Derivative liabilities 8,263 — 246 — 246 Hawaiian Electric consolidated Short-term borrowings 43,990 — 43,990 — 43,990 Long-term debt, net 1,318,845 — 1,434,528 — 1,434,528 Derivative liabilities-window forward contracts 4,726 — 230 — 230 December 31, 2016 Financial assets HEI consolidated Money market funds $ 13,085 $ — $ 13,085 $ — $ 13,085 Available-for-sale investment securities 1,105,182 — 1,089,755 15,427 1,105,182 Stock in Federal Home Loan Bank 11,218 — 11,218 — 11,218 Loans receivable, net 4,701,977 — 13,333 4,839,493 4,852,826 Mortgage servicing rights 9,373 — — 13,216 13,216 Bank-owned life insurance 143,197 — 143,197 — 143,197 Derivative assets 23,578 — 453 — 453 Financial liabilities HEI consolidated Deposit liabilities 5,548,929 — 5,546,644 — 5,546,644 Short-term borrowings—other than bank — — — — — Other bank borrowings 192,618 — 193,991 — 193,991 Long-term debt, net—other than bank 1,619,019 — 1,704,717 — 1,704,717 Derivative liabilities 53,852 129 823 — 952 Hawaiian Electric consolidated Long-term debt, net 1,319,260 — 1,399,490 — 1,399,490 Derivative liabilities-window forward contracts 20,734 — 743 — 743 |
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: June 30, 2017 December 31, 2016 Fair value measurements using Fair value measurements using (in thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Money market funds (“other” segment) $ — $ — $ — $ — $ 13,085 $ — Available-for-sale investment securities (bank segment) Mortgage-related securities-FNMA, FHLMC and GNMA $ — $ 1,100,876 $ — $ — $ 897,474 $ — U.S. Treasury and federal agency obligations — 186,583 — — 192,281 — Mortgage revenue bond — — 15,427 — — 15,427 $ — $ 1,287,459 $ 15,427 $ — $ 1,089,755 $ 15,427 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 142 $ — $ — $ 445 $ — Forward commitments (bank segment) 1 47 41 — — 8 — Window forward contract (electric utility segment) 2 — 615 — — — — $ 47 $ 798 $ — $ — $ 453 $ — Derivative liabilities Interest rate lock commitments (bank segment) 1 $ — $ 16 $ — $ — $ 24 $ — Forward commitments (bank segment) 1 — — — 129 56 — Window forward contracts (electric utility segment) 2 — 230 — — 743 — $ — $ 246 $ — $ 129 $ 823 $ — 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. 2 Derivatives are included in noncurrent regulatory assets and/or liabilities in the balance sheets. |
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: Three months ended June 30 Six months ended June 30 Mortgage revenue bond 2017 2016 2017 2016 (in thousands) Beginning balance $ 15,427 $ — $ 15,427 $ — Principal payments received — — — — Purchases — — — — Unrealized gain (loss) included in other comprehensive income — — — — Ending balance $ 15,427 $ — $ 15,427 $ — |
Schedule of assets measured at fair value on a nonrecurring basis | The carrying value of assets measured at fair value on a nonrecurring basis were as follows: Fair value measurements (in thousands) Balance Level 1 Level 2 Level 3 June 30, 2017 Loans $ 1,258 $ — $ — $ 1,258 December 31, 2016 Loans 2,767 — — 2,767 Real estate acquired in settlement of loans 1,189 — — 1,189 |
Schedule of significant unobservable inputs used in the fair value measurement | Key assumptions used in estimating the fair value of ASB’s mortgage servicing rights used in the impairment analysis were as follows: (dollars in thousands) June 30, 2017 December 31, 2016 Unpaid principal balance $ 1,208,404 $ 1,188,380 Weighted average note rate 3.95 % 3.96 % Weighted average discount rate 10.0 % 9.4 % Weighted average prepayment speed 8.8 % 8.5 % The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) ($ in thousands) Fair value Valuation technique Significant unobservable input Range Weighted Average June 30, 2017 Residential loan $ 448 Fair value of collateral Appraised value less 7% selling cost N/A (2) Commercial loan 810 Sales price Sales price N/A (2) Total loans $ 1,258 December 31, 2016 Residential loans $ 2,468 Sales price Sales price 95-100% 97% Residential loans 287 Fair value of property or collateral Appraised value less 7% selling cost 42-65% 61% Home equity lines of credit 12 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Total loans $ 2,767 Real estate acquired in settlement of loans $ 1,189 Fair value of property or collateral Appraised value less 7% selling cost 100% 100% (1) Represent percent of outstanding principal balance. (2) N/A - Not applicable. There is one loan in each fair value measurement type. |
Segment financial information31
Segment financial information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Segment financial information | |||||
Total revenues | $ 632,281 | $ 566,244 | $ 1,223,843 | $ 1,117,204 | |
Income (loss) before income taxes | 59,626 | 70,911 | 111,208 | 122,037 | |
Income taxes (benefit) | 20,492 | 26,310 | 37,408 | 44,611 | |
Net income | 39,134 | 44,601 | 73,800 | 77,426 | |
Preferred stock dividends of subsidiaries | 473 | 473 | 946 | 946 | |
Net income for common stock | 38,661 | 44,128 | 72,854 | 76,480 | |
Total assets | 12,693,805 | 12,693,805 | $ 12,425,506 | ||
Electric utility | |||||
Segment financial information | |||||
Total revenues | 556,875 | 495,395 | 1,075,486 | 977,447 | |
Income (loss) before income taxes | 41,003 | 58,340 | 75,725 | 98,759 | |
Income taxes (benefit) | 14,860 | 21,984 | 27,618 | 36,537 | |
Net income | 26,143 | 36,356 | 48,107 | 62,222 | |
Preferred stock dividends of subsidiaries | 499 | 499 | 998 | 998 | |
Net income for common stock | 25,644 | 35,857 | 47,109 | 61,224 | |
Total assets | 6,071,155 | 6,071,155 | 5,975,428 | ||
Bank | |||||
Segment financial information | |||||
Total revenues | 75,329 | 70,749 | 148,185 | 139,589 | |
Income (loss) before income taxes | 24,796 | 20,224 | 48,956 | 39,818 | |
Income taxes (benefit) | 8,063 | 6,939 | 16,410 | 13,860 | |
Net income | 16,733 | 13,285 | 32,546 | 25,958 | |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 | |
Net income for common stock | 16,733 | 13,285 | 32,546 | 25,958 | |
Total assets | 6,610,877 | 6,610,877 | 6,421,357 | ||
Other | |||||
Segment financial information | |||||
Total revenues | 77 | 100 | 172 | 168 | |
Income (loss) before income taxes | (6,173) | (7,653) | (13,473) | (16,540) | |
Income taxes (benefit) | (2,431) | (2,613) | (6,620) | (5,786) | |
Net income | (3,742) | (5,040) | (6,853) | (10,754) | |
Preferred stock dividends of subsidiaries | (26) | (26) | (52) | (52) | |
Net income for common stock | (3,716) | (5,014) | (6,801) | (10,702) | |
Total assets | 11,773 | 11,773 | $ 28,721 | ||
Revenues from external customers | |||||
Segment financial information | |||||
Total revenues | 632,281 | 566,244 | 1,223,843 | 1,117,204 | |
Revenues from external customers | Electric utility | |||||
Segment financial information | |||||
Total revenues | 556,836 | 495,349 | 1,075,402 | 977,394 | |
Revenues from external customers | Bank | |||||
Segment financial information | |||||
Total revenues | 75,329 | 70,749 | 148,185 | 139,589 | |
Revenues from external customers | Other | |||||
Segment financial information | |||||
Total revenues | 116 | 146 | 256 | 221 | |
Intersegment revenues (eliminations) | |||||
Segment financial information | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Intersegment revenues (eliminations) | Electric utility | |||||
Segment financial information | |||||
Total revenues | 39 | 46 | 84 | 53 | |
Intersegment revenues (eliminations) | Bank | |||||
Segment financial information | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Intersegment revenues (eliminations) | Other | |||||
Segment financial information | |||||
Total revenues | $ (39) | $ (46) | $ (84) | $ (53) |
Electric utility segment - Taxe
Electric utility segment - Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Revenue taxes | ||||
Revenue taxes included in operating revenues and in taxes other than income taxes expense | $ 50 | $ 44 | $ 96 | $ 87 |
Electric utility segment - Unco
Electric utility segment - Unconsolidated variable interest entities (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Oct. 31, 2004MW | Mar. 31, 2004USD ($)security | Oct. 31, 1988MW | Jun. 30, 2017USD ($)entity | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)agreemententity | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Power purchase agreement | ||||||||
Purchases from IPPs | $ 153,000,000 | $ 139,000,000 | $ 280,000,000 | $ 255,000,000 | ||||
Termination period (in days) | 60 days | |||||||
Hawaiian Electric Company | ||||||||
Power purchase agreement | ||||||||
Number of power purchase agreements (PPAs) (in agreements) | agreement | 5 | |||||||
Number of entities currently required to be consolidated as VIEs (in entities) | entity | 0 | 0 | ||||||
Number of firm capacity producers declining to provide financial information to determine primary beneficiary status (in entities) | entity | 2 | |||||||
Minimum potential number of IPP entities consolidated into company in the future (in entities) | entity | 1 | |||||||
Purchases from IPPs | $ 116,458,000 | 103,062,000 | $ 216,605,000 | 194,979,000 | ||||
Hawaiian Electric Company | Kalaeloa Partners, L.P. (Kalaeloa) | ||||||||
Power purchase agreement | ||||||||
Purchases from IPPs | 48,000,000 | 36,000,000 | 88,000,000 | 65,000,000 | ||||
Power purchase capacity that Increases from initial capacity (in megawatts) | MW | 180 | |||||||
Number of years entity entered under power purchase agreement (in years) | 25 years | |||||||
Power purchase capacity that Increases from initial capacity (in megawatts) | MW | 208,000 | |||||||
Hawaiian Electric Company | AES Hawaii, Inc. (AES Hawaii) | ||||||||
Power purchase agreement | ||||||||
Purchases from IPPs | 35,000,000 | 36,000,000 | 64,000,000 | 74,000,000 | ||||
Hawaiian Electric Company | HPOWER | ||||||||
Power purchase agreement | ||||||||
Purchases from IPPs | 16,000,000 | 17,000,000 | 33,000,000 | 33,000,000 | ||||
Hawaiian Electric Company | Puna Geothermal Venture | ||||||||
Power purchase agreement | ||||||||
Purchases from IPPs | 10,000,000 | 5,000,000 | 18,000,000 | 12,000,000 | ||||
Hawaiian Electric Company | Hamakua Energy Partners, L.P. (HEP) | ||||||||
Power purchase agreement | ||||||||
Purchases from IPPs | 10,000,000 | 4,000,000 | 17,000,000 | 15,000,000 | ||||
Hawaiian Electric Company | Other IPPs | ||||||||
Power purchase agreement | ||||||||
Purchases from IPPs | 34,000,000 | 41,000,000 | 60,000,000 | 56,000,000 | ||||
Hawaii Electric Light Company, Inc. (HELCO) | ||||||||
Power purchase agreement | ||||||||
Purchases from IPPs | 23,482,000 | 19,360,000 | 42,071,000 | 36,157,000 | ||||
Maui Electric | ||||||||
Power purchase agreement | ||||||||
Purchases from IPPs | 13,127,000 | $ 16,636,000 | 21,515,000 | $ 23,781,000 | ||||
Variable Interest Entity, Not Primary Beneficiary | ||||||||
Unconsolidated variable interest entities | ||||||||
Investment in 2004 Debentures | 51,500,000 | 51,500,000 | $ 51,500,000 | |||||
Interest income | $ 1,700,000 | |||||||
Variable Interest Entity, Not Primary Beneficiary | Hawaiian Electric Company | ||||||||
Unconsolidated variable interest entities | ||||||||
Principal amount of 2004 Debentures | $ 31,500,000 | |||||||
Percent of ownership in Trust III (as a percent) | 100.00% | |||||||
Variable Interest Entity, Not Primary Beneficiary | Hawaiian Electric Company | 2004 Trust Preferred Securities | ||||||||
Unconsolidated variable interest entities | ||||||||
Number of 2004 Trust Preferred Securities issued (in securities) | security | 2,000,000 | |||||||
Dividend rate on 2004 Trust Preferred Securities (as a percent) | 6.50% | |||||||
Aggregate Liquidation preference | $ 50,000,000 | |||||||
Balance of Trust Securities | 50,000,000 | $ 50,000,000 | 50,000,000 | |||||
Dividend distributions on Trust Preferred Securities | 1,600,000 | |||||||
Variable Interest Entity, Not Primary Beneficiary | Hawaiian Electric Company | Trust Common Securities | ||||||||
Unconsolidated variable interest entities | ||||||||
Aggregate Liquidation preference | 1,500,000 | |||||||
Balance of Trust Securities | $ 1,500,000 | 1,500,000 | $ 1,500,000 | |||||
Common dividend | $ 50,000 | |||||||
Variable Interest Entity, Not Primary Beneficiary | Hawaii Electric Light Company, Inc. (HELCO) | ||||||||
Unconsolidated variable interest entities | ||||||||
Principal amount of 2004 Debentures | 10,000,000 | |||||||
Variable Interest Entity, Not Primary Beneficiary | Maui Electric | ||||||||
Unconsolidated variable interest entities | ||||||||
Principal amount of 2004 Debentures | $ 10,000,000 |
Electric utility segment - Comm
Electric utility segment - Commitments and contingencies (Details) private_photovoltaic_system in Thousands | Apr. 30, 2017USD ($) | Apr. 27, 2017USD ($) | Aug. 11, 2016USD ($) | Jan. 05, 2016USD ($) | Jun. 30, 2017USD ($)private_photovoltaic_system$ / kWh | Oct. 31, 2016customer | Jul. 31, 2016MW | Apr. 30, 2016islandprivate_photovoltaic_system | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015MW | Apr. 30, 2014order | Aug. 31, 2012MW | May 31, 2012MW | Oct. 31, 1988MW | Mar. 31, 1988MW | Jun. 30, 2017USD ($)private_photovoltaic_systemMW | Jun. 30, 2017USD ($)private_photovoltaic_system | Jun. 30, 2017USD ($)private_photovoltaic_system | Jun. 30, 2017USD ($)private_photovoltaic_system | Dec. 31, 2016USD ($) | Jul. 31, 2014USD ($) |
Regulatory projects and legal obligations | ||||||||||||||||||||||
Purchase commitment, period (in years) | 30 years | |||||||||||||||||||||
Minimum power volume required (in megawatts) | MW | 186 | 180 | ||||||||||||||||||||
Additional capacity requirement (in megawatts) | MW | 9 | |||||||||||||||||||||
ERP/EAM Project, expected costs | $ 82,400,000 | |||||||||||||||||||||
ERP/EAM cost recovery cap | $ 77,600,000 | |||||||||||||||||||||
Public utility, ERP/EAM required pass through savings to customers | $ 244,000,000 | |||||||||||||||||||||
ERP/EAM project service period (in years) | 12 years | |||||||||||||||||||||
AFUDC rate (as a percent) | 1.75% | |||||||||||||||||||||
ERP/EAM implementation project costs | $ 14,000,000 | |||||||||||||||||||||
ERP/EAM implementation project, operations and management | 2,500,000 | |||||||||||||||||||||
ERP/EAM implementation project, capital costs | 1,100,000 | |||||||||||||||||||||
ERP/EAM implementation project, deferred costs | 10,400,000 | |||||||||||||||||||||
Schofield generating station facility capacity (in megawatts) | MW | 50 | |||||||||||||||||||||
Schofield generating station project, budgetary cap | $ 157,300,000 | $ 167,000,000 | ||||||||||||||||||||
Percent of costs recoverable through recovery mechanisms other than base rates (as a percent) | 90.00% | |||||||||||||||||||||
Decrease in project costs | $ 9,700,000 | |||||||||||||||||||||
Project lease term (in years) | 35 years | |||||||||||||||||||||
Project cost incurred | $ 87,800,000 | |||||||||||||||||||||
West Lock PV Project, energy generated (in megawatts) | MW | 20 | |||||||||||||||||||||
West Lock PV Project, cost cap | $ 67,000,000 | $ 67,000,000 | 67,000,000 | $ 67,000,000 | 67,000,000 | |||||||||||||||||
West Lock PV Project, maximum energy cost (in dollars per kilowatt hours) | $ / kWh | 0.0956 | |||||||||||||||||||||
West Lock PV Project, project costs incurred | 400,000 | |||||||||||||||||||||
Accounts receivable and unbilled revenues, net | $ 249,539,000 | $ 249,539,000 | $ 249,539,000 | $ 249,539,000 | $ 249,539,000 | $ 237,950,000 | ||||||||||||||||
Environmental regulation | ||||||||||||||||||||||
Number of orders from regulatory agency (in orders) | order | 4 | |||||||||||||||||||||
Percent of energy production from renewable energy sources (as a percent) | 100.00% | |||||||||||||||||||||
Renewable energy plan term (in years) | 5 years | |||||||||||||||||||||
Renewable energy plan, number of islands served | island | 5 | |||||||||||||||||||||
Number of private systems estimated to be needed to meet environmental goals | private_photovoltaic_system | 165 | |||||||||||||||||||||
Number of private systems, current | private_photovoltaic_system | 79 | 79 | 79 | 79 | 79 | |||||||||||||||||
Public utilities, duration of Time of Use Program (in years) | 2 years | |||||||||||||||||||||
Public utilities, number of customers impacted by Time Of Use Program (in customers) | customer | 5,000 | |||||||||||||||||||||
Decoupling order, service reliability performance, historical measurement period (in years) | 10 years | |||||||||||||||||||||
Maximum penalty as a percent of equity (as a percent) | 0.20% | |||||||||||||||||||||
Service reliability, maximum penalty | $ 3,000,000 | |||||||||||||||||||||
Dead band percentage above or below the target (as a percent) | 3.00% | |||||||||||||||||||||
Maximum incentive, percent of return on equity (as a percent) | 0.08% | |||||||||||||||||||||
Call center performance, maximum penalty | $ 1,200,000 | |||||||||||||||||||||
Threshold of capital expenditures in excess of customer contributions for qualification for major project interim recovery | $ 2,500,000 | |||||||||||||||||||||
PCB Contamination | ||||||||||||||||||||||
Environmental regulation | ||||||||||||||||||||||
Valuation allowances and reserves | $ 4,900,000 | $ 4,900,000 | $ 4,900,000 | $ 4,900,000 | $ 4,900,000 | |||||||||||||||||
Hawaii Electric Light Company, Inc. (HELCO) | Hamakua Energy Partners, L.P. (HEP) | ||||||||||||||||||||||
Regulatory projects and legal obligations | ||||||||||||||||||||||
Potential purchase price | $ 84,500,000 | |||||||||||||||||||||
Hawaii Electric Light Company, Inc. (HELCO) | Maximum | ||||||||||||||||||||||
Regulatory projects and legal obligations | ||||||||||||||||||||||
Power purchase capacity that Increases from initial capacity (in megawatts) | MW | 60 | |||||||||||||||||||||
Hamakua Energy Partners, L.P. (HEP) | ||||||||||||||||||||||
Regulatory projects and legal obligations | ||||||||||||||||||||||
Percent of island's generating capacity (as a percent) | 23.00% | |||||||||||||||||||||
Maui Electric | ||||||||||||||||||||||
Environmental regulation | ||||||||||||||||||||||
Additional accrued investigation and estimated cleanup costs | 3,500,000 | $ 3,500,000 | 3,500,000 | 3,500,000 | 3,500,000 | |||||||||||||||||
Hu Honua Bioenergy, LLC | ||||||||||||||||||||||
Regulatory projects and legal obligations | ||||||||||||||||||||||
Minimum power volume required (in megawatts) | MW | 21.5 | |||||||||||||||||||||
Hawaiian Telcom | ||||||||||||||||||||||
Regulatory projects and legal obligations | ||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | 22,100,000 | 22,100,000 | 22,100,000 | 22,100,000 | 22,100,000 | |||||||||||||||||
Reserve for interest accrued | 4,900,000 | 4,900,000 | 4,900,000 | 4,900,000 | 4,900,000 | |||||||||||||||||
Hawaiian Telcom | Hawaii Electric Light Company, Inc. (HELCO) | ||||||||||||||||||||||
Regulatory projects and legal obligations | ||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | 6,000,000 | 6,000,000 | 6,000,000 | 6,000,000 | 6,000,000 | |||||||||||||||||
Hawaiian Telcom | Hawaiian Electric Company | ||||||||||||||||||||||
Regulatory projects and legal obligations | ||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | 14,800,000 | 14,800,000 | 14,800,000 | 14,800,000 | 14,800,000 | |||||||||||||||||
Hawaiian Telcom | Maui Electric | ||||||||||||||||||||||
Regulatory projects and legal obligations | ||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | $ 1,300,000 | $ 1,300,000 | $ 1,300,000 | $ 1,300,000 | $ 1,300,000 | |||||||||||||||||
Kalaeloa Partners, L.P. (Kalaeloa) | Hawaiian Electric Company | ||||||||||||||||||||||
Regulatory projects and legal obligations | ||||||||||||||||||||||
Power purchase capacity that Increases from initial capacity (in megawatts) | MW | 180 |
Electric utility segment - Annu
Electric utility segment - Annual decoupling filings summary (Details) | Mar. 31, 2017USD ($)kWh |
Hawaiian Electric Company | |
Regulatory projects and legal obligations | |
2017 Annual incremental RAM adjusted revenues | $ 12,700,000 |
Annual change in accrued earnings sharing credits | 0 |
Annual change in accrued RBA balance as of December 31, 2016 (and associated revenue taxes) (refunded) | (2,400,000) |
Net annual incremental amount to be collected under the tariffs | 10,300,000 |
Impact on typical residential customer monthly bill (in dollars) | $ 0.60 |
Monthly utility usage assumption (in kilowatt hours) | kWh | 500 |
HELCO | |
Regulatory projects and legal obligations | |
2017 Annual incremental RAM adjusted revenues | $ 3,200,000 |
Annual change in accrued earnings sharing credits | 0 |
Annual change in accrued RBA balance as of December 31, 2016 (and associated revenue taxes) (refunded) | (2,500,000) |
Net annual incremental amount to be collected under the tariffs | 700,000 |
Impact on typical residential customer monthly bill (in dollars) | $ 0.15 |
Monthly utility usage assumption (in kilowatt hours) | kWh | 500 |
Maui Electric | |
Regulatory projects and legal obligations | |
2017 Annual incremental RAM adjusted revenues | $ 1,600,000 |
Annual change in accrued earnings sharing credits | 0 |
Annual change in accrued RBA balance as of December 31, 2016 (and associated revenue taxes) (refunded) | (200,000) |
Net annual incremental amount to be collected under the tariffs | 1,400,000 |
Impact on typical residential customer monthly bill (in dollars) | $ 0.79 |
Monthly utility usage assumption (in kilowatt hours) | kWh | 500 |
Lanai and Molokai | |
Regulatory projects and legal obligations | |
Impact on typical residential customer monthly bill (in dollars) | $ 0.63 |
Monthly utility usage assumption (in kilowatt hours) | kWh | 400 |
Electric utility segment - Cond
Electric utility segment - Condensed consolidating statement of income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | $ 632,281 | $ 566,244 | $ 1,223,843 | $ 1,117,204 |
Expenses | ||||
Purchased power | 153,000 | 139,000 | 280,000 | 255,000 |
Total expenses | 556,385 | 480,789 | 1,080,085 | 962,898 |
Total operating income | 75,896 | 85,455 | 143,758 | 154,306 |
Allowance for equity funds used during construction | 3,027 | 1,997 | 5,426 | 3,736 |
Allowance for borrowed funds used during construction | 1,143 | 760 | 2,032 | 1,422 |
Income before income taxes | 59,626 | 70,911 | 111,208 | 122,037 |
Income taxes | 20,492 | 26,310 | 37,408 | 44,611 |
Net income | 39,134 | 44,601 | 73,800 | 77,426 |
Preferred stock dividends of subsidiaries | 473 | 473 | 946 | 946 |
Net income for common stock | 38,661 | 44,128 | 72,854 | 76,480 |
Hawaiian Electric Company | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 394,414 | 347,010 | 757,257 | 684,185 |
Expenses | ||||
Fuel oil | 99,814 | 62,234 | 197,815 | 136,319 |
Purchased power | 116,458 | 103,062 | 216,605 | 194,979 |
Other operation and maintenance | 70,961 | 68,197 | 138,239 | 137,755 |
Depreciation | 32,723 | 31,522 | 65,445 | 63,044 |
Taxes, other than income taxes | 37,619 | 33,414 | 72,659 | 66,098 |
Total expenses | 357,575 | 298,429 | 690,763 | 598,195 |
Total operating income | 36,839 | 48,581 | 66,494 | 85,990 |
Allowance for equity funds used during construction | 2,659 | 1,559 | 4,715 | 2,965 |
Equity in earnings of subsidiaries | 7,936 | 10,883 | 16,539 | 18,812 |
Interest expense and other charges, net | (12,562) | (10,345) | (24,619) | (22,210) |
Allowance for borrowed funds used during construction | 988 | 587 | 1,737 | 1,116 |
Income before income taxes | 35,860 | 51,265 | 64,866 | 86,673 |
Income taxes | 9,946 | 15,138 | 17,217 | 24,909 |
Net income | 25,914 | 36,127 | 47,649 | 61,764 |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 |
Net income attributable to Hawaiian Electric | 25,914 | 36,127 | 47,649 | 61,764 |
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 540 | 540 |
Net income for common stock | 25,644 | 35,857 | 47,109 | 61,224 |
HELCO | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 81,710 | 73,652 | 160,692 | 146,835 |
Expenses | ||||
Fuel oil | 14,475 | 11,748 | 31,732 | 26,122 |
Purchased power | 23,482 | 19,360 | 42,071 | 36,157 |
Other operation and maintenance | 17,558 | 15,116 | 33,074 | 31,557 |
Depreciation | 9,686 | 9,449 | 19,371 | 18,898 |
Taxes, other than income taxes | 7,702 | 6,905 | 15,152 | 13,796 |
Total expenses | 72,903 | 62,578 | 141,400 | 126,530 |
Total operating income | 8,807 | 11,074 | 19,292 | 20,305 |
Allowance for equity funds used during construction | 134 | 206 | 249 | 333 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Interest expense and other charges, net | (2,996) | (2,669) | (6,000) | (5,634) |
Allowance for borrowed funds used during construction | 55 | 79 | 100 | 128 |
Income before income taxes | 6,000 | 8,690 | 13,641 | 15,132 |
Income taxes | 2,235 | 3,337 | 5,158 | 5,683 |
Net income | 3,765 | 5,353 | 8,483 | 9,449 |
Preferred stock dividends of subsidiaries | 133 | 133 | 267 | 267 |
Net income attributable to Hawaiian Electric | 3,632 | 5,220 | 8,216 | 9,182 |
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 |
Net income for common stock | 3,632 | 5,220 | 8,216 | 9,182 |
Maui Electric | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 80,765 | 74,758 | 157,558 | 146,464 |
Expenses | ||||
Fuel oil | 26,970 | 17,917 | 55,982 | 43,198 |
Purchased power | 13,127 | 16,636 | 21,515 | 23,781 |
Other operation and maintenance | 17,855 | 16,250 | 35,301 | 34,159 |
Depreciation | 5,747 | 5,789 | 11,556 | 11,599 |
Taxes, other than income taxes | 7,651 | 7,110 | 14,984 | 13,973 |
Total expenses | 71,350 | 63,702 | 139,338 | 126,710 |
Total operating income | 9,415 | 11,056 | 18,220 | 19,754 |
Allowance for equity funds used during construction | 234 | 232 | 462 | 438 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Interest expense and other charges, net | (2,670) | (2,114) | (5,120) | (4,604) |
Allowance for borrowed funds used during construction | 100 | 94 | 195 | 178 |
Income before income taxes | 7,079 | 9,268 | 13,757 | 15,766 |
Income taxes | 2,679 | 3,509 | 5,243 | 5,945 |
Net income | 4,400 | 5,759 | 8,514 | 9,821 |
Preferred stock dividends of subsidiaries | 96 | 96 | 191 | 191 |
Net income attributable to Hawaiian Electric | 4,304 | 5,663 | 8,323 | 9,630 |
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 |
Net income for common stock | 4,304 | 5,663 | 8,323 | 9,630 |
Other subsidiaries | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Expenses | ||||
Fuel oil | 0 | 0 | 0 | 0 |
Purchased power | 0 | 0 | 0 | 0 |
Other operation and maintenance | 0 | 0 | 0 | 0 |
Depreciation | 0 | 0 | 0 | 0 |
Taxes, other than income taxes | 0 | 0 | 0 | 0 |
Total expenses | 0 | 0 | 0 | 0 |
Total operating income | 0 | 0 | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Interest expense and other charges, net | 0 | 0 | 0 | 0 |
Allowance for borrowed funds used during construction | 0 | 0 | 0 | 0 |
Income before income taxes | 0 | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 | 0 |
Net income | 0 | 0 | 0 | 0 |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 |
Net income attributable to Hawaiian Electric | 0 | 0 | 0 | 0 |
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 |
Net income for common stock | 0 | 0 | 0 | 0 |
Consolidating adjustments | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | (14) | (25) | (21) | (37) |
Expenses | ||||
Fuel oil | 0 | 0 | 0 | 0 |
Purchased power | 0 | 0 | 0 | 0 |
Other operation and maintenance | 0 | 0 | 0 | 0 |
Depreciation | 0 | 0 | 0 | 0 |
Taxes, other than income taxes | 0 | 0 | 0 | 0 |
Total expenses | 0 | 0 | 0 | 0 |
Total operating income | (14) | (25) | (21) | (37) |
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | (7,936) | (10,883) | (16,539) | (18,812) |
Interest expense and other charges, net | 14 | 25 | 21 | 37 |
Allowance for borrowed funds used during construction | 0 | 0 | 0 | 0 |
Income before income taxes | (7,936) | (10,883) | (16,539) | (18,812) |
Income taxes | 0 | 0 | 0 | 0 |
Net income | (7,936) | (10,883) | (16,539) | (18,812) |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 |
Net income attributable to Hawaiian Electric | (7,936) | (10,883) | (16,539) | (18,812) |
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 |
Net income for common stock | (7,936) | (10,883) | (16,539) | (18,812) |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 556,875 | 495,395 | 1,075,486 | 977,447 |
Expenses | ||||
Fuel oil | 141,259 | 91,899 | 285,529 | 205,639 |
Purchased power | 153,067 | 139,058 | 280,191 | 254,917 |
Other operation and maintenance | 106,374 | 99,563 | 206,614 | 203,471 |
Depreciation | 48,156 | 46,760 | 96,372 | 93,541 |
Taxes, other than income taxes | 52,972 | 47,429 | 102,795 | 93,867 |
Total expenses | 501,828 | 424,709 | 971,501 | 851,435 |
Total operating income | 55,047 | 70,686 | 103,985 | 126,012 |
Allowance for equity funds used during construction | 3,027 | 1,997 | 5,426 | 3,736 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Interest expense and other charges, net | (18,214) | (15,103) | (35,718) | (32,411) |
Allowance for borrowed funds used during construction | 1,143 | 760 | 2,032 | 1,422 |
Income before income taxes | 41,003 | 58,340 | 75,725 | 98,759 |
Income taxes | 14,860 | 21,984 | 27,618 | 36,537 |
Net income | 26,143 | 36,356 | 48,107 | 62,222 |
Preferred stock dividends of subsidiaries | 229 | 229 | 458 | 458 |
Net income attributable to Hawaiian Electric | 25,914 | 36,127 | 47,649 | 61,764 |
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 540 | 540 |
Net income for common stock | $ 25,644 | $ 35,857 | $ 47,109 | $ 61,224 |
Electric utility segment - Co37
Electric utility segment - Condensed consolidating statement of comprehensive income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Statement of Income Captions [Line Items] | ||||
Net income for common stock | $ 38,661 | $ 44,128 | $ 72,854 | $ 76,480 |
Derivatives qualifying as cash flow hedges: | ||||
Reclassification adjustment to net income, net of tax benefits | 0 | 0 | 454 | 54 |
Effective portion of foreign currency hedge net unrealized gain, net of taxes | 0 | (745) | 0 | 257 |
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $___, $2,160, $___ and $4,221, respectively | 3,930 | 3,698 | 7,851 | 7,236 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (3,581) | (3,401) | (7,194) | (6,623) |
Other comprehensive income, net of taxes | 2,370 | 2,108 | 3,355 | 10,908 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 41,031 | 46,236 | 76,209 | 87,388 |
Hawaiian Electric Company | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income for common stock | 25,644 | 35,857 | 47,109 | 61,224 |
Derivatives qualifying as cash flow hedges: | ||||
Reclassification adjustment to net income, net of tax benefits | 0 | 454 | ||
Effective portion of foreign currency hedge net unrealized gain, net of taxes | (745) | 257 | ||
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $___, $2,160, $___ and $4,221, respectively | 3,621 | 3,391 | 7,239 | 6,627 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (3,581) | (3,401) | (7,194) | (6,623) |
Other comprehensive income, net of taxes | 40 | (755) | 499 | 261 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 25,684 | 35,102 | 47,608 | 61,485 |
HELCO | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income for common stock | 3,632 | 5,220 | 8,216 | 9,182 |
Derivatives qualifying as cash flow hedges: | ||||
Reclassification adjustment to net income, net of tax benefits | 0 | 0 | ||
Effective portion of foreign currency hedge net unrealized gain, net of taxes | 0 | 0 | ||
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $___, $2,160, $___ and $4,221, respectively | 449 | 401 | 952 | 859 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (448) | (402) | (951) | (860) |
Other comprehensive income, net of taxes | 1 | (1) | 1 | (1) |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 3,633 | 5,219 | 8,217 | 9,181 |
Maui Electric | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income for common stock | 4,304 | 5,663 | 8,323 | 9,630 |
Derivatives qualifying as cash flow hedges: | ||||
Reclassification adjustment to net income, net of tax benefits | 0 | 0 | ||
Effective portion of foreign currency hedge net unrealized gain, net of taxes | 0 | 0 | ||
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $___, $2,160, $___ and $4,221, respectively | 344 | 357 | 810 | 775 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (343) | (359) | (810) | (777) |
Other comprehensive income, net of taxes | 1 | (2) | 0 | (2) |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 4,305 | 5,661 | 8,323 | 9,628 |
Other subsidiaries | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income for common stock | 0 | 0 | 0 | 0 |
Derivatives qualifying as cash flow hedges: | ||||
Reclassification adjustment to net income, net of tax benefits | 0 | 0 | ||
Effective portion of foreign currency hedge net unrealized gain, net of taxes | 0 | 0 | ||
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $___, $2,160, $___ and $4,221, respectively | 0 | 0 | 0 | 0 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 0 | 0 | 0 | 0 |
Other comprehensive income, net of taxes | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 0 | 0 | 0 | 0 |
Consolidating adjustments | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income for common stock | (7,936) | (10,883) | (16,539) | (18,812) |
Derivatives qualifying as cash flow hedges: | ||||
Reclassification adjustment to net income, net of tax benefits | 0 | 0 | ||
Effective portion of foreign currency hedge net unrealized gain, net of taxes | 0 | 0 | ||
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $___, $2,160, $___ and $4,221, respectively | (793) | (758) | (1,762) | (1,634) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 791 | 761 | 1,761 | 1,637 |
Other comprehensive income, net of taxes | (2) | 3 | (1) | 3 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | (7,938) | (10,880) | (16,540) | (18,809) |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income for common stock | 25,644 | 35,857 | 47,109 | 61,224 |
Derivatives qualifying as cash flow hedges: | ||||
Reclassification adjustment to net income, net of tax benefits | 0 | 0 | 454 | 0 |
Effective portion of foreign currency hedge net unrealized gain, net of taxes | 0 | (745) | 0 | 257 |
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $___, $2,160, $___ and $4,221, respectively | 3,621 | 3,391 | 7,239 | 6,627 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (3,581) | (3,401) | (7,194) | (6,623) |
Other comprehensive income, net of taxes | 40 | (755) | 499 | 261 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ 25,684 | $ 35,102 | $ 47,608 | $ 61,485 |
Electric utility segment - Co38
Electric utility segment - Condensed consolidating balance sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Utility property, plant and equipment | ||||
Total property, plant and equipment, net | $ 4,726,524 | $ 4,603,465 | ||
Current assets | ||||
Cash and cash equivalents | 210,381 | 278,452 | $ 257,208 | $ 300,478 |
Other long-term assets | ||||
Total assets | 12,693,805 | 12,425,506 | ||
Capitalization | ||||
Common stock equity | 2,075,029 | 2,066,753 | 1,966,182 | 1,927,640 |
Cumulative preferred stock—not subject to mandatory redemption | 0 | 0 | ||
Current liabilities | ||||
Interest and preferred dividends payable | 22,124 | 25,225 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 750,413 | 728,806 | ||
Contributions in aid of construction | 543,204 | 543,525 | ||
Total liabilities and shareholders’ equity | 12,693,805 | 12,425,506 | ||
Hawaiian Electric Company | ||||
Utility property, plant and equipment | ||||
Land | 43,971 | 43,956 | ||
Plant and equipment | 4,318,460 | 4,241,060 | ||
Less accumulated depreciation | (1,423,042) | (1,382,972) | ||
Construction in progress | 232,965 | 180,194 | ||
Utility property, plant and equipment, net | 3,172,354 | 3,082,238 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 5,763 | 5,760 | ||
Total property, plant and equipment, net | 3,178,117 | 3,087,998 | ||
Investment in wholly owned subsidiaries, at equity | 553,764 | 550,946 | ||
Current assets | ||||
Cash and cash equivalents | 29,988 | 61,388 | 19,842 | 16,281 |
Advances to affiliates | 0 | 0 | ||
Customer accounts receivable, net | 88,614 | 86,373 | ||
Accrued unbilled revenues, net | 74,640 | 65,821 | ||
Other accounts receivable, net | 9,707 | 7,652 | ||
Fuel oil stock, at average cost | 51,489 | 47,239 | ||
Materials and supplies, at average cost | 30,716 | 29,928 | ||
Prepayments and other | 25,695 | 16,502 | ||
Regulatory assets | 65,891 | 60,185 | ||
Total current assets | 376,740 | 375,088 | ||
Other long-term assets | ||||
Regulatory assets | 638,480 | 662,232 | ||
Unamortized debt expense | 497 | 151 | ||
Other | 48,164 | 43,743 | ||
Other | 687,141 | 706,126 | ||
Total assets | 4,795,762 | 4,720,158 | ||
Capitalization | ||||
Common stock equity | 1,803,506 | 1,799,787 | 1,743,006 | 1,728,325 |
Cumulative preferred stock—not subject to mandatory redemption | 22,293 | 22,293 | ||
Long-term debt, net | 915,208 | 915,437 | ||
Total capitalization | 2,741,007 | 2,737,517 | ||
Current liabilities | ||||
Short-term borrowings from non-affiliates | 43,990 | |||
Short-term borrowings from affiliate | 5,100 | 13,500 | ||
Accounts payable | 123,986 | 86,369 | ||
Interest and preferred dividends payable | 13,584 | 15,761 | ||
Taxes accrued | 98,156 | 120,176 | ||
Regulatory liabilities | 126 | 0 | ||
Other | 38,964 | 41,352 | ||
Total current liabilities | 323,906 | 277,158 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 542,109 | 524,433 | ||
Regulatory liabilities | 297,006 | 281,112 | ||
Unamortized tax credits | 59,537 | 57,844 | ||
Defined benefit pension and other postretirement benefit plans liability | 435,614 | 444,458 | ||
Other | 49,798 | 49,191 | ||
Total deferred credits and other liabilities | 1,384,064 | 1,357,038 | ||
Contributions in aid of construction | 346,785 | 348,445 | ||
Total liabilities and shareholders’ equity | 4,795,762 | 4,720,158 | ||
HELCO | ||||
Utility property, plant and equipment | ||||
Land | 6,191 | 6,181 | ||
Plant and equipment | 1,267,529 | 1,255,185 | ||
Less accumulated depreciation | (518,266) | (507,666) | ||
Construction in progress | 16,734 | 12,510 | ||
Utility property, plant and equipment, net | 772,188 | 766,210 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 115 | 115 | ||
Total property, plant and equipment, net | 772,303 | 766,325 | ||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 7,104 | 10,749 | 5,264 | 2,682 |
Advances to affiliates | 4,100 | 3,500 | ||
Customer accounts receivable, net | 18,847 | 20,055 | ||
Accrued unbilled revenues, net | 14,166 | 13,564 | ||
Other accounts receivable, net | 2,471 | 2,445 | ||
Fuel oil stock, at average cost | 8,135 | 8,229 | ||
Materials and supplies, at average cost | 8,852 | 7,380 | ||
Prepayments and other | 7,294 | 5,352 | ||
Regulatory assets | 3,981 | 3,483 | ||
Total current assets | 74,950 | 74,757 | ||
Other long-term assets | ||||
Regulatory assets | 119,108 | 120,863 | ||
Unamortized debt expense | 84 | 23 | ||
Other | 13,778 | 13,573 | ||
Other | 132,970 | 134,459 | ||
Total assets | 980,223 | 975,541 | ||
Capitalization | ||||
Common stock equity | 291,760 | 291,291 | 295,275 | 292,702 |
Cumulative preferred stock—not subject to mandatory redemption | 7,000 | 7,000 | ||
Long-term debt, net | 213,677 | 213,703 | ||
Total capitalization | 512,437 | 511,994 | ||
Current liabilities | ||||
Short-term borrowings from non-affiliates | 0 | |||
Short-term borrowings from affiliate | 0 | 0 | ||
Accounts payable | 19,796 | 18,126 | ||
Interest and preferred dividends payable | 3,806 | 4,206 | ||
Taxes accrued | 23,394 | 28,100 | ||
Regulatory liabilities | 713 | 2,219 | ||
Other | 8,920 | 7,637 | ||
Total current liabilities | 56,629 | 60,288 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 111,616 | 108,052 | ||
Regulatory liabilities | 98,844 | 93,974 | ||
Unamortized tax credits | 16,246 | 15,994 | ||
Defined benefit pension and other postretirement benefit plans liability | 73,246 | 75,005 | ||
Other | 13,803 | 13,024 | ||
Total deferred credits and other liabilities | 313,755 | 306,049 | ||
Contributions in aid of construction | 97,402 | 97,210 | ||
Total liabilities and shareholders’ equity | 980,223 | 975,541 | ||
Maui Electric | ||||
Utility property, plant and equipment | ||||
Land | 3,016 | 3,016 | ||
Plant and equipment | 1,125,429 | 1,109,487 | ||
Less accumulated depreciation | (488,789) | (478,644) | ||
Construction in progress | 22,739 | 19,038 | ||
Utility property, plant and equipment, net | 662,395 | 652,897 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 1,532 | 1,532 | ||
Total property, plant and equipment, net | 663,927 | 654,429 | ||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 5,389 | 2,048 | 2,372 | 5,385 |
Advances to affiliates | 1,000 | 10,000 | ||
Customer accounts receivable, net | 18,700 | 17,260 | ||
Accrued unbilled revenues, net | 14,790 | 12,308 | ||
Other accounts receivable, net | 1,042 | 1,416 | ||
Fuel oil stock, at average cost | 12,768 | 10,962 | ||
Materials and supplies, at average cost | 17,531 | 16,371 | ||
Prepayments and other | 3,602 | 2,179 | ||
Regulatory assets | 4,295 | 2,364 | ||
Total current assets | 79,117 | 74,908 | ||
Other long-term assets | ||||
Regulatory assets | 106,522 | 108,324 | ||
Unamortized debt expense | 109 | 34 | ||
Other | 14,045 | 13,592 | ||
Other | 120,676 | 121,950 | ||
Total assets | 863,720 | 851,287 | ||
Capitalization | ||||
Common stock equity | 261,903 | 259,554 | 266,823 | 263,725 |
Cumulative preferred stock—not subject to mandatory redemption | 5,000 | 5,000 | ||
Long-term debt, net | 189,960 | 190,120 | ||
Total capitalization | 456,863 | 454,674 | ||
Current liabilities | ||||
Short-term borrowings from non-affiliates | 0 | |||
Short-term borrowings from affiliate | 0 | 0 | ||
Accounts payable | 18,593 | 13,319 | ||
Interest and preferred dividends payable | 2,113 | 2,882 | ||
Taxes accrued | 20,964 | 25,387 | ||
Regulatory liabilities | 2,044 | 1,543 | ||
Other | 14,786 | 12,501 | ||
Total current liabilities | 58,500 | 55,632 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 106,023 | 100,911 | ||
Regulatory liabilities | 32,897 | 31,845 | ||
Unamortized tax credits | 15,603 | 15,123 | ||
Defined benefit pension and other postretirement benefit plans liability | 78,858 | 80,263 | ||
Other | 15,959 | 14,969 | ||
Total deferred credits and other liabilities | 249,340 | 243,111 | ||
Contributions in aid of construction | 99,017 | 97,870 | ||
Total liabilities and shareholders’ equity | 863,720 | 851,287 | ||
Other subsidiaries | ||||
Utility property, plant and equipment | ||||
Land | 0 | 0 | ||
Plant and equipment | 0 | 0 | ||
Less accumulated depreciation | 0 | 0 | ||
Construction in progress | 0 | 0 | ||
Utility property, plant and equipment, net | 0 | 0 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 0 | 0 | ||
Total property, plant and equipment, net | 0 | 0 | ||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 101 | 101 | 101 | 101 |
Advances to affiliates | 0 | 0 | ||
Customer accounts receivable, net | 0 | 0 | ||
Accrued unbilled revenues, net | 0 | 0 | ||
Other accounts receivable, net | 0 | 0 | ||
Fuel oil stock, at average cost | 0 | 0 | ||
Materials and supplies, at average cost | 0 | 0 | ||
Prepayments and other | 0 | 0 | ||
Regulatory assets | 0 | 0 | ||
Total current assets | 101 | 101 | ||
Other long-term assets | ||||
Regulatory assets | 0 | 0 | ||
Unamortized debt expense | 0 | 0 | ||
Other | 0 | 0 | ||
Other | 0 | 0 | ||
Total assets | 101 | 101 | ||
Capitalization | ||||
Common stock equity | 101 | 101 | 101 | 101 |
Cumulative preferred stock—not subject to mandatory redemption | 0 | 0 | ||
Long-term debt, net | 0 | 0 | ||
Total capitalization | 101 | 101 | ||
Current liabilities | ||||
Short-term borrowings from non-affiliates | 0 | |||
Short-term borrowings from affiliate | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Interest and preferred dividends payable | 0 | 0 | ||
Taxes accrued | 0 | 0 | ||
Regulatory liabilities | 0 | 0 | ||
Other | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 0 | 0 | ||
Regulatory liabilities | 0 | 0 | ||
Unamortized tax credits | 0 | 0 | ||
Defined benefit pension and other postretirement benefit plans liability | 0 | 0 | ||
Other | 0 | 0 | ||
Total deferred credits and other liabilities | 0 | 0 | ||
Contributions in aid of construction | 0 | 0 | ||
Total liabilities and shareholders’ equity | 101 | 101 | ||
Consolidating adjustments | ||||
Utility property, plant and equipment | ||||
Land | 0 | 0 | ||
Plant and equipment | 0 | 0 | ||
Less accumulated depreciation | 0 | 0 | ||
Construction in progress | 0 | 0 | ||
Utility property, plant and equipment, net | 0 | 0 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 0 | 0 | ||
Total property, plant and equipment, net | 0 | 0 | ||
Investment in wholly owned subsidiaries, at equity | (553,764) | (550,946) | ||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Advances to affiliates | (5,100) | (13,500) | ||
Customer accounts receivable, net | 0 | 0 | ||
Accrued unbilled revenues, net | 0 | 0 | ||
Other accounts receivable, net | (9,536) | (6,280) | ||
Fuel oil stock, at average cost | 0 | 0 | ||
Materials and supplies, at average cost | 0 | 0 | ||
Prepayments and other | (251) | (933) | ||
Regulatory assets | 0 | 0 | ||
Total current assets | (14,887) | (20,713) | ||
Other long-term assets | ||||
Regulatory assets | 0 | 0 | ||
Unamortized debt expense | 0 | 0 | ||
Other | 0 | 0 | ||
Other | 0 | 0 | ||
Total assets | (568,651) | (571,659) | ||
Capitalization | ||||
Common stock equity | (553,764) | (550,946) | (562,199) | (556,528) |
Cumulative preferred stock—not subject to mandatory redemption | 0 | 0 | ||
Long-term debt, net | 0 | 0 | ||
Total capitalization | (553,764) | (550,946) | ||
Current liabilities | ||||
Short-term borrowings from non-affiliates | 0 | |||
Short-term borrowings from affiliate | (5,100) | (13,500) | ||
Accounts payable | 0 | 0 | ||
Interest and preferred dividends payable | (6) | (11) | ||
Taxes accrued | (251) | (933) | ||
Regulatory liabilities | 0 | 0 | ||
Other | (9,530) | (6,269) | ||
Total current liabilities | (14,887) | (20,713) | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 224 | 263 | ||
Regulatory liabilities | 0 | 0 | ||
Unamortized tax credits | 0 | 0 | ||
Defined benefit pension and other postretirement benefit plans liability | 0 | 0 | ||
Other | (224) | (263) | ||
Total deferred credits and other liabilities | 0 | 0 | ||
Contributions in aid of construction | 0 | 0 | ||
Total liabilities and shareholders’ equity | (568,651) | (571,659) | ||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Utility property, plant and equipment | ||||
Land | 53,178 | 53,153 | ||
Plant and equipment | 6,711,418 | 6,605,732 | ||
Less accumulated depreciation | (2,430,097) | (2,369,282) | ||
Construction in progress | 272,438 | 211,742 | ||
Utility property, plant and equipment, net | 4,606,937 | 4,501,345 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 7,410 | 7,407 | ||
Total property, plant and equipment, net | 4,614,347 | 4,508,752 | ||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 42,582 | 74,286 | 27,579 | 24,449 |
Advances to affiliates | 0 | 0 | ||
Customer accounts receivable, net | 126,161 | 123,688 | ||
Accrued unbilled revenues, net | 103,596 | 91,693 | ||
Other accounts receivable, net | 3,684 | 5,233 | ||
Fuel oil stock, at average cost | 72,392 | 66,430 | ||
Materials and supplies, at average cost | 57,099 | 53,679 | ||
Prepayments and other | 36,340 | 23,100 | ||
Regulatory assets | 74,167 | 66,032 | ||
Total current assets | 516,021 | 504,141 | ||
Other long-term assets | ||||
Regulatory assets | 864,110 | 891,419 | ||
Unamortized debt expense | 690 | 208 | ||
Other | 75,987 | 70,908 | ||
Other | 940,787 | 962,535 | ||
Total assets | 6,071,155 | 5,975,428 | ||
Capitalization | ||||
Common stock equity | 1,803,506 | 1,799,787 | $ 1,743,006 | $ 1,728,325 |
Cumulative preferred stock—not subject to mandatory redemption | 34,293 | 34,293 | ||
Long-term debt, net | 1,318,845 | 1,319,260 | ||
Total capitalization | 3,156,644 | 3,153,340 | ||
Current liabilities | ||||
Short-term borrowings from non-affiliates | 43,990 | 0 | ||
Short-term borrowings from affiliate | 0 | 0 | ||
Accounts payable | 162,375 | 117,814 | ||
Interest and preferred dividends payable | 19,497 | 22,838 | ||
Taxes accrued | 142,263 | 172,730 | ||
Regulatory liabilities | 2,883 | 3,762 | ||
Other | 53,140 | 55,221 | ||
Total current liabilities | 424,148 | 372,365 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 759,972 | 733,659 | ||
Regulatory liabilities | 428,747 | 406,931 | ||
Unamortized tax credits | 91,386 | 88,961 | ||
Defined benefit pension and other postretirement benefit plans liability | 587,718 | 599,726 | ||
Other | 79,336 | 76,921 | ||
Total deferred credits and other liabilities | 1,947,159 | 1,906,198 | ||
Contributions in aid of construction | 543,204 | 543,525 | ||
Total liabilities and shareholders’ equity | $ 6,071,155 | $ 5,975,428 |
Electric utility segment - Co39
Electric utility segment - Condensed consolidating statement of changes in common stock equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Increase (decrease) in stockholders' equity | ||||
Beginning Balance | $ 2,066,753 | $ 1,927,640 | ||
Net income for common stock | $ 38,661 | $ 44,128 | 72,854 | 76,480 |
Other comprehensive income (loss), net of taxes | 2,370 | 2,108 | 3,355 | 10,908 |
Common stock dividends | (67,426) | (66,848) | ||
Ending Balance | 2,075,029 | 1,966,182 | 2,075,029 | 1,966,182 |
Hawaiian Electric Company | ||||
Increase (decrease) in stockholders' equity | ||||
Beginning Balance | 1,799,787 | 1,728,325 | ||
Net income for common stock | 25,644 | 35,857 | 47,109 | 61,224 |
Other comprehensive income (loss), net of taxes | 40 | (755) | 499 | 261 |
Common stock dividends | (43,884) | (46,800) | ||
Common stock issuance expenses | (5) | (4) | ||
Ending Balance | 1,803,506 | 1,743,006 | 1,803,506 | 1,743,006 |
HELCO | ||||
Increase (decrease) in stockholders' equity | ||||
Beginning Balance | 291,291 | 292,702 | ||
Net income for common stock | 3,632 | 5,220 | 8,216 | 9,182 |
Other comprehensive income (loss), net of taxes | 1 | (1) | 1 | (1) |
Common stock dividends | (7,748) | (6,604) | ||
Common stock issuance expenses | 0 | (4) | ||
Ending Balance | 291,760 | 295,275 | 291,760 | 295,275 |
Maui Electric | ||||
Increase (decrease) in stockholders' equity | ||||
Beginning Balance | 259,554 | 263,725 | ||
Net income for common stock | 4,304 | 5,663 | 8,323 | 9,630 |
Other comprehensive income (loss), net of taxes | 1 | (2) | 0 | (2) |
Common stock dividends | (5,973) | (6,530) | ||
Common stock issuance expenses | (1) | 0 | ||
Ending Balance | 261,903 | 266,823 | 261,903 | 266,823 |
Other subsidiaries | ||||
Increase (decrease) in stockholders' equity | ||||
Beginning Balance | 101 | 101 | ||
Net income for common stock | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of taxes | 0 | 0 | 0 | 0 |
Common stock dividends | 0 | 0 | ||
Common stock issuance expenses | 0 | 0 | ||
Ending Balance | 101 | 101 | 101 | 101 |
Consolidating adjustments | ||||
Increase (decrease) in stockholders' equity | ||||
Beginning Balance | (550,946) | (556,528) | ||
Net income for common stock | (7,936) | (10,883) | (16,539) | (18,812) |
Other comprehensive income (loss), net of taxes | (2) | 3 | (1) | 3 |
Common stock dividends | 13,721 | 13,134 | ||
Common stock issuance expenses | 1 | 4 | ||
Ending Balance | (553,764) | (562,199) | (553,764) | (562,199) |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Increase (decrease) in stockholders' equity | ||||
Beginning Balance | 1,799,787 | 1,728,325 | ||
Net income for common stock | 25,644 | 35,857 | 47,109 | 61,224 |
Other comprehensive income (loss), net of taxes | 40 | (755) | 499 | 261 |
Common stock dividends | (43,884) | (46,800) | ||
Common stock issuance expenses | (5) | (4) | ||
Ending Balance | $ 1,803,506 | $ 1,743,006 | $ 1,803,506 | $ 1,743,006 |
Electric utility segment - Co40
Electric utility segment - Condensed consolidating statement of cash flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities | ||||
Net income | $ 39,134 | $ 44,601 | $ 73,800 | $ 77,426 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation of property, plant and equipment | 100,062 | 97,148 | ||
Other amortization | 6,101 | 4,840 | ||
Deferred income taxes | 17,047 | 21,738 | ||
Allowance for equity funds used during construction | (3,027) | (1,997) | (5,426) | (3,736) |
Other | 246 | 2,982 | ||
Changes in assets and liabilities | ||||
Decrease (increase) in fuel oil stock | (5,962) | 9,644 | ||
Decrease (increase) in regulatory assets | 8,179 | (11,752) | ||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (37,954) | 622 | ||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 420 | 95 | ||
Change in other assets and liabilities | (33,922) | (18,878) | ||
Net cash provided by operating activities | 186,023 | 225,843 | ||
Cash flows from investing activities | ||||
Capital expenditures | (222,246) | (203,631) | ||
Contributions in aid of construction | 17,571 | 16,810 | ||
Other | 8,216 | 1,106 | ||
Net cash used in investing activities | (399,442) | (384,986) | ||
Cash flows from financing activities | ||||
Common stock dividends | (67,426) | (55,591) | ||
Proceeds from issuance of long-term debt | 265,000 | 75,000 | ||
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (265,000) | (75,000) | ||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 49,789 | 12,922 | ||
Other | (3,253) | 2,908 | ||
Net cash provided by financing activities | 145,348 | 115,873 | ||
Net decrease in cash and cash equivalents | (68,071) | (43,270) | ||
Cash and cash equivalents, beginning of period | 278,452 | 300,478 | ||
Cash and cash equivalents, end of period | 210,381 | 257,208 | 210,381 | 257,208 |
Hawaiian Electric Company | ||||
Cash flows from operating activities | ||||
Net income | 25,914 | 36,127 | 47,649 | 61,764 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in earnings of subsidiaries | (16,589) | (18,862) | ||
Common stock dividends received from subsidiaries | 13,771 | 13,184 | ||
Depreciation of property, plant and equipment | 65,445 | 63,044 | ||
Other amortization | 1,875 | 1,919 | ||
Deferred income taxes | 15,060 | 23,954 | ||
Allowance for equity funds used during construction | (2,659) | (1,559) | (4,715) | (2,965) |
Other | 1,089 | 1,383 | ||
Changes in assets and liabilities | ||||
Decrease (increase) in accounts receivable | (5,100) | 14,177 | ||
Increase in accrued unbilled revenues | (8,819) | (2,941) | ||
Decrease (increase) in fuel oil stock | (4,250) | 6,015 | ||
Increase in materials and supplies | (788) | (1,748) | ||
Decrease (increase) in regulatory assets | 11,378 | (3,974) | ||
Increase in accounts payable | 39,954 | 17,150 | ||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (29,430) | (21,371) | ||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 355 | 299 | ||
Change in other assets and liabilities | (12,727) | (11,803) | ||
Net cash provided by operating activities | 114,158 | 139,225 | ||
Cash flows from investing activities | ||||
Capital expenditures | (153,554) | (152,283) | ||
Contributions in aid of construction | 14,078 | 12,824 | ||
Other | 4,820 | 132 | ||
Advances from affiliates | 0 | 0 | ||
Net cash used in investing activities | (134,656) | (139,327) | ||
Cash flows from financing activities | ||||
Common stock dividends | (43,884) | (46,800) | ||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (540) | (540) | ||
Proceeds from issuance of long-term debt | 162,000 | |||
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (162,000) | |||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 35,590 | 50,995 | ||
Other | (2,068) | 8 | ||
Net cash provided by financing activities | (10,902) | 3,663 | ||
Net decrease in cash and cash equivalents | (31,400) | 3,561 | ||
Cash and cash equivalents, beginning of period | 61,388 | 16,281 | ||
Cash and cash equivalents, end of period | 29,988 | 19,842 | 29,988 | 19,842 |
HELCO | ||||
Cash flows from operating activities | ||||
Net income | 3,765 | 5,353 | 8,483 | 9,449 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in earnings of subsidiaries | 0 | 0 | ||
Common stock dividends received from subsidiaries | 0 | 0 | ||
Depreciation of property, plant and equipment | 19,371 | 18,898 | ||
Other amortization | 905 | 911 | ||
Deferred income taxes | 3,590 | 2,538 | ||
Allowance for equity funds used during construction | (134) | (206) | (249) | (333) |
Other | 699 | 1,611 | ||
Changes in assets and liabilities | ||||
Decrease (increase) in accounts receivable | 1,182 | 2,007 | ||
Increase in accrued unbilled revenues | (602) | 634 | ||
Decrease (increase) in fuel oil stock | 94 | 924 | ||
Increase in materials and supplies | (1,472) | (708) | ||
Decrease (increase) in regulatory assets | (1,575) | 2,138 | ||
Increase in accounts payable | 3,291 | 208 | ||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (6,290) | (192) | ||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 26 | 27 | ||
Change in other assets and liabilities | 129 | 11 | ||
Net cash provided by operating activities | 27,582 | 38,123 | ||
Cash flows from investing activities | ||||
Capital expenditures | (24,744) | (27,436) | ||
Contributions in aid of construction | 1,870 | 1,605 | ||
Other | 619 | 169 | ||
Advances from affiliates | (600) | (3,000) | ||
Net cash used in investing activities | (22,855) | (28,662) | ||
Cash flows from financing activities | ||||
Common stock dividends | (7,748) | (6,604) | ||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (267) | (267) | ||
Proceeds from issuance of long-term debt | 28,000 | |||
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (28,000) | |||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | 0 | ||
Other | (357) | (8) | ||
Net cash provided by financing activities | (8,372) | (6,879) | ||
Net decrease in cash and cash equivalents | (3,645) | 2,582 | ||
Cash and cash equivalents, beginning of period | 10,749 | 2,682 | ||
Cash and cash equivalents, end of period | 7,104 | 5,264 | 7,104 | 5,264 |
Maui Electric | ||||
Cash flows from operating activities | ||||
Net income | 4,400 | 5,759 | 8,514 | 9,821 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in earnings of subsidiaries | 0 | 0 | ||
Common stock dividends received from subsidiaries | 0 | 0 | ||
Depreciation of property, plant and equipment | 11,556 | 11,599 | ||
Other amortization | 1,482 | 963 | ||
Deferred income taxes | 4,988 | 5,623 | ||
Allowance for equity funds used during construction | (234) | (232) | (462) | (438) |
Other | (173) | (12) | ||
Changes in assets and liabilities | ||||
Decrease (increase) in accounts receivable | (1,067) | 729 | ||
Increase in accrued unbilled revenues | (2,482) | (908) | ||
Decrease (increase) in fuel oil stock | (1,806) | 2,705 | ||
Increase in materials and supplies | (1,160) | (26) | ||
Decrease (increase) in regulatory assets | (1,624) | 1,159 | ||
Increase in accounts payable | 8,392 | 6,069 | ||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (4,725) | (6,626) | ||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (79) | (89) | ||
Change in other assets and liabilities | 1,807 | (659) | ||
Net cash provided by operating activities | 23,161 | 29,910 | ||
Cash flows from investing activities | ||||
Capital expenditures | (23,782) | (17,613) | ||
Contributions in aid of construction | 1,623 | 2,381 | ||
Other | 307 | 30 | ||
Advances from affiliates | 9,000 | (11,000) | ||
Net cash used in investing activities | (12,852) | (26,202) | ||
Cash flows from financing activities | ||||
Common stock dividends | (5,973) | (6,530) | ||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (191) | (191) | ||
Proceeds from issuance of long-term debt | 75,000 | |||
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (75,000) | |||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | 0 | ||
Other | (804) | 0 | ||
Net cash provided by financing activities | (6,968) | (6,721) | ||
Net decrease in cash and cash equivalents | 3,341 | (3,013) | ||
Cash and cash equivalents, beginning of period | 2,048 | 5,385 | ||
Cash and cash equivalents, end of period | 5,389 | 2,372 | 5,389 | 2,372 |
Other subsidiaries | ||||
Cash flows from operating activities | ||||
Net income | 0 | 0 | 0 | 0 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in earnings of subsidiaries | 0 | 0 | ||
Common stock dividends received from subsidiaries | 0 | 0 | ||
Depreciation of property, plant and equipment | 0 | 0 | ||
Other amortization | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 |
Other | 0 | 0 | ||
Changes in assets and liabilities | ||||
Decrease (increase) in accounts receivable | 0 | 0 | ||
Increase in accrued unbilled revenues | 0 | 0 | ||
Decrease (increase) in fuel oil stock | 0 | 0 | ||
Increase in materials and supplies | 0 | 0 | ||
Decrease (increase) in regulatory assets | 0 | 0 | ||
Increase in accounts payable | 0 | 0 | ||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 0 | 0 | ||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 0 | 0 | ||
Change in other assets and liabilities | 0 | 0 | ||
Net cash provided by operating activities | 0 | 0 | ||
Cash flows from investing activities | ||||
Capital expenditures | 0 | 0 | ||
Contributions in aid of construction | 0 | 0 | ||
Other | 0 | 0 | ||
Advances from affiliates | 0 | 0 | ||
Net cash used in investing activities | 0 | 0 | ||
Cash flows from financing activities | ||||
Common stock dividends | 0 | 0 | ||
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | ||
Proceeds from issuance of long-term debt | 0 | |||
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | 0 | |||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | 0 | ||
Other | 0 | 0 | ||
Net cash provided by financing activities | 0 | 0 | ||
Net decrease in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents, beginning of period | 101 | 101 | ||
Cash and cash equivalents, end of period | 101 | 101 | 101 | 101 |
Consolidating adjustments | ||||
Cash flows from operating activities | ||||
Net income | (7,936) | (10,883) | (16,539) | (18,812) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in earnings of subsidiaries | 16,539 | 18,812 | ||
Common stock dividends received from subsidiaries | (13,721) | (13,134) | ||
Depreciation of property, plant and equipment | 0 | 0 | ||
Other amortization | 0 | 0 | ||
Deferred income taxes | (39) | 3 | ||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 |
Other | 0 | 0 | ||
Changes in assets and liabilities | ||||
Decrease (increase) in accounts receivable | 3,256 | (231) | ||
Increase in accrued unbilled revenues | 0 | 0 | ||
Decrease (increase) in fuel oil stock | 0 | 0 | ||
Increase in materials and supplies | 0 | 0 | ||
Decrease (increase) in regulatory assets | 0 | 0 | ||
Increase in accounts payable | 0 | 0 | ||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (465) | (3) | ||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 0 | 0 | ||
Change in other assets and liabilities | (3,256) | 231 | ||
Net cash provided by operating activities | (14,225) | (13,134) | ||
Cash flows from investing activities | ||||
Capital expenditures | 0 | 0 | ||
Contributions in aid of construction | 0 | 0 | ||
Other | 504 | 0 | ||
Advances from affiliates | (8,400) | 14,000 | ||
Net cash used in investing activities | (7,896) | 14,000 | ||
Cash flows from financing activities | ||||
Common stock dividends | 13,721 | 13,134 | ||
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | ||
Proceeds from issuance of long-term debt | ||||
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | 0 | |||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 8,400 | (14,000) | ||
Other | 0 | 0 | ||
Net cash provided by financing activities | 22,121 | (866) | ||
Net decrease in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents, beginning of period | 0 | 0 | ||
Cash and cash equivalents, end of period | 0 | 0 | 0 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Cash flows from operating activities | ||||
Net income | 26,143 | 36,356 | 48,107 | 62,222 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in earnings of subsidiaries | (50) | (50) | ||
Common stock dividends received from subsidiaries | 50 | 50 | ||
Depreciation of property, plant and equipment | 96,372 | 93,541 | ||
Other amortization | 4,262 | 3,793 | ||
Deferred income taxes | 23,599 | 32,118 | ||
Allowance for equity funds used during construction | (3,027) | (1,997) | (5,426) | (3,736) |
Other | 1,615 | 2,982 | ||
Changes in assets and liabilities | ||||
Decrease (increase) in accounts receivable | (1,729) | 16,682 | ||
Increase in accrued unbilled revenues | (11,903) | (3,215) | ||
Decrease (increase) in fuel oil stock | (5,962) | 9,644 | ||
Increase in materials and supplies | (3,420) | (2,482) | ||
Decrease (increase) in regulatory assets | 8,179 | (677) | ||
Increase in accounts payable | 51,637 | 23,427 | ||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (40,910) | (28,192) | ||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 302 | 237 | ||
Change in other assets and liabilities | (14,047) | (12,220) | ||
Net cash provided by operating activities | 150,676 | 194,124 | ||
Cash flows from investing activities | ||||
Capital expenditures | (202,080) | (197,332) | ||
Contributions in aid of construction | 17,571 | 16,810 | ||
Other | 6,250 | 331 | ||
Advances from affiliates | 0 | 0 | ||
Net cash used in investing activities | (178,259) | (180,191) | ||
Cash flows from financing activities | ||||
Common stock dividends | (43,884) | (46,800) | ||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (998) | (998) | ||
Proceeds from issuance of long-term debt | 265,000 | 0 | ||
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (265,000) | 0 | ||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 43,990 | 36,995 | ||
Other | (3,229) | 0 | ||
Net cash provided by financing activities | (4,121) | (10,803) | ||
Net decrease in cash and cash equivalents | (31,704) | 3,130 | ||
Cash and cash equivalents, beginning of period | 74,286 | 24,449 | ||
Cash and cash equivalents, end of period | $ 42,582 | $ 27,579 | $ 42,582 | $ 27,579 |
Bank segment - Income statemen
Bank segment - Income statement data (unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Noninterest expense | ||||
Income before income taxes | $ 59,626 | $ 70,911 | $ 111,208 | $ 122,037 |
Income taxes | 20,492 | 26,310 | 37,408 | 44,611 |
Net income | 39,134 | 44,601 | 73,800 | 77,426 |
American Savings Bank (ASB) | ||||
Interest and dividend income | ||||
Interest and fees on loans | 52,317 | 49,690 | 103,059 | 98,127 |
Interest and dividends on investment securities | 6,763 | 4,443 | 13,743 | 9,460 |
Total interest and dividend income | 59,080 | 54,133 | 116,802 | 107,587 |
Interest expense | ||||
Interest on deposit liabilities | 2,311 | 1,691 | 4,414 | 3,283 |
Interest on other borrowings | 824 | 1,467 | 1,640 | 2,952 |
Total interest expense | 3,135 | 3,158 | 6,054 | 6,235 |
Net interest income | 55,945 | 50,975 | 110,748 | 101,352 |
Provision for loan losses | 2,834 | 4,753 | 6,741 | 9,519 |
Net interest income after provision for loan losses | 53,111 | 46,222 | 104,007 | 91,833 |
Noninterest income | ||||
Fees from other financial services | 5,810 | 5,701 | 11,420 | 11,200 |
Fee income on deposit liabilities | 5,565 | 5,262 | 10,993 | 10,418 |
Fee income on other financial products | 1,971 | 2,207 | 3,837 | 4,412 |
Bank-owned life insurance | 1,925 | 1,006 | 2,908 | 2,004 |
Mortgage banking income | 587 | 1,554 | 1,376 | 2,749 |
Gains on sale of investment securities, net | 0 | 598 | 0 | 598 |
Other income, net | 391 | 288 | 849 | 621 |
Total noninterest income | 16,249 | 16,616 | 31,383 | 32,002 |
Noninterest expense | ||||
Compensation and employee benefits | 24,742 | 21,919 | 47,979 | 44,353 |
Occupancy | 4,185 | 4,115 | 8,339 | 8,253 |
Data processing | 3,207 | 3,277 | 6,487 | 6,449 |
Services | 2,766 | 2,755 | 5,126 | 5,666 |
Equipment | 1,771 | 1,771 | 3,519 | 3,434 |
Office supplies, printing and postage | 1,527 | 1,583 | 3,062 | 2,948 |
Marketing | 839 | 899 | 1,356 | 1,760 |
FDIC insurance | 822 | 913 | 1,550 | 1,797 |
Other expense | 4,705 | 5,382 | 9,016 | 9,357 |
Total noninterest expense | 44,564 | 42,614 | 86,434 | 84,017 |
Income before income taxes | 24,796 | 20,224 | 48,956 | 39,818 |
Income taxes | 8,063 | 6,939 | 16,410 | 13,860 |
Net income | $ 16,733 | $ 13,285 | $ 32,546 | $ 25,958 |
Bank segment - Comprehensive i
Bank segment - Comprehensive income data (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Statement of Income Captions [Line Items] | ||||
Net income for common stock | $ 38,661 | $ 44,128 | $ 72,854 | $ 76,480 |
Net unrealized gains (losses) on securities: | ||||
Net unrealized gains on available-for-sale investment securities arising during the period, net of taxes of $1,334, $1,925, $1,482 and $6,830, respectively | 2,021 | 2,916 | 2,244 | 10,344 |
Reclassification adjustment for net realized gains included in net income, net of taxes | 0 | (360) | 0 | (360) |
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $133, $140, $537 and $277, respectively | 3,930 | 3,698 | 7,851 | 7,236 |
Other comprehensive income, net of taxes | 2,370 | 2,108 | 3,355 | 10,908 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 41,031 | 46,236 | 76,209 | 87,388 |
Net unrealized gains (losses) on securities arising during the period, taxes (benefits) | 1,334 | 1,925 | 1,482 | 6,830 |
Less: reclassification adjustment to net income - realized gains on available-for-sale investment securities | 0 | 238 | 0 | 238 |
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax benefits | (2,508) | (2,362) | (5,010) | (4,619) |
American Savings Bank (ASB) | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income for common stock | 16,733 | 13,285 | 32,546 | 25,958 |
Net unrealized gains (losses) on securities: | ||||
Net unrealized gains on available-for-sale investment securities arising during the period, net of taxes of $1,334, $1,925, $1,482 and $6,830, respectively | 2,021 | 2,915 | 2,244 | 10,344 |
Reclassification adjustment for net realized gains included in net income, net of taxes | 0 | (360) | 0 | (360) |
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $133, $140, $537 and $277, respectively | 202 | 211 | 814 | 419 |
Other comprehensive income, net of taxes | 2,223 | 2,766 | 3,058 | 10,403 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 18,956 | 16,051 | 35,604 | 36,361 |
Net unrealized gains (losses) on securities arising during the period, taxes (benefits) | 1,334 | 1,925 | 1,482 | 6,830 |
Less: reclassification adjustment to net income - realized gains on available-for-sale investment securities | 0 | 238 | 0 | 238 |
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax benefits | $ (133) | $ (140) | $ (537) | $ (277) |
Bank segment - Balance sheet d
Bank segment - Balance sheet data (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||||
Available-for-sale investment securities, at fair value | $ 1,302,886 | $ 1,105,182 | ||
Stock in Federal Home Loan Bank, at cost | 11,706 | 11,218 | ||
Allowance for loan losses | (56,356) | (55,533) | ||
Net loans | 4,688,278 | 4,683,160 | ||
Loans held for sale, at lower of cost or fair value | 5,261 | 18,817 | ||
Other | 478,763 | 447,621 | ||
Goodwill | 82,190 | 82,190 | ||
Total assets | 12,693,805 | 12,425,506 | ||
Liabilities | ||||
Other | 434,610 | 473,512 | ||
Total liabilities | 10,584,483 | 10,324,460 | ||
Commitments and contingencies | ||||
Retained earnings | 444,400 | 438,972 | ||
Accumulated other comprehensive loss, net of tax benefits | ||||
Accumulated other comprehensive loss, net of tax benefits | (29,774) | (33,129) | ||
Total shareholders’ equity | 2,075,029 | 2,066,753 | $ 1,966,182 | $ 1,927,640 |
Total liabilities and shareholders’ equity | 12,693,805 | 12,425,506 | ||
Other assets | ||||
Premises and equipment, net | 4,726,524 | 4,603,465 | ||
Total Other Assets | 478,763 | 447,621 | ||
Other liabilities | ||||
Total other liabilities | 434,610 | 473,512 | ||
Balance Sheet related disclosures | ||||
Securities sold under agreements to repurchase | 88,000 | 93,000 | ||
American Savings Bank (ASB) | ||||
Assets | ||||
Cash and due from banks | 128,609 | 137,083 | ||
Interest-bearing deposits | 37,049 | 52,128 | ||
Restricted cash | 0 | 1,764 | ||
Available-for-sale investment securities, at fair value | 1,302,886 | 1,105,182 | ||
Stock in Federal Home Loan Bank, at cost | 11,706 | 11,218 | ||
Loans receivable held for investment | 4,744,634 | 4,738,693 | ||
Allowance for loan losses | (56,356) | (55,533) | ||
Net loans | 4,688,278 | 4,683,160 | ||
Loans held for sale, at lower of cost or fair value | 5,261 | 18,817 | ||
Other | 354,898 | 329,815 | ||
Goodwill | 82,190 | 82,190 | ||
Total assets | 6,610,877 | 6,421,357 | ||
Liabilities | ||||
Deposit liabilities—noninterest-bearing | 1,694,150 | 1,639,051 | ||
Deposit liabilities—interest-bearing | 4,030,236 | 3,909,878 | ||
Other borrowings | 188,130 | 192,618 | ||
Other | 101,974 | 101,635 | ||
Total liabilities | 6,014,490 | 5,843,182 | ||
Commitments and contingencies | ||||
Common stock | 1 | 1 | ||
Additional paid in capital | 344,062 | 342,704 | ||
Retained earnings | 271,739 | 257,943 | ||
Accumulated other comprehensive loss, net of tax benefits | ||||
Net unrealized losses on securities | (5,687) | (7,931) | ||
Retirement benefit plans | (13,728) | (14,542) | ||
Accumulated other comprehensive loss, net of tax benefits | (19,415) | (22,473) | ||
Total shareholders’ equity | 596,387 | 578,175 | ||
Total liabilities and shareholders’ equity | 6,610,877 | 6,421,357 | ||
Other assets | ||||
Bank-owned life insurance | 146,122 | 143,197 | ||
Premises and equipment, net | 108,158 | 90,570 | ||
Prepaid expenses | 4,632 | 3,348 | ||
Accrued interest receivable | 16,949 | 16,824 | ||
Mortgage-servicing rights | 9,181 | 9,373 | ||
Low-income housing equity investments | 48,596 | 47,081 | ||
Real estate acquired in settlement of loans, net | 1,554 | 1,189 | ||
Other | 19,706 | 18,233 | ||
Total Other Assets | 354,898 | 329,815 | ||
Other liabilities | ||||
Accrued expenses | 34,451 | 36,754 | ||
Federal and state income taxes payable | 6,336 | 4,728 | ||
Cashier’s checks | 24,191 | 24,156 | ||
Advance payments by borrowers | 10,334 | 10,335 | ||
Other | 26,662 | 25,662 | ||
Total other liabilities | 101,974 | 101,635 | ||
Balance Sheet related disclosures | ||||
Securities sold under agreements to repurchase | 88,000 | 93,000 | ||
Advances from Federal Home Loan Bank | $ 100,000 | $ 100,000 |
Bank segment - Components of i
Bank segment - Components of investment securities (Details) $ in Thousands | Jun. 30, 2017USD ($)issue | Dec. 31, 2016USD ($)issue |
Available-for-sale securities | ||
Amortized cost | $ 1,312,329 | $ 1,118,350 |
Gross unrealized gains | 3,149 | 2,662 |
Gross unrealized losses | (12,592) | (15,830) |
Available-for-sale investment securities | $ 1,302,886 | $ 1,105,182 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Available-for-sale, securities, less than 12 months, number of issues (in issues) | issue | 114 | 106 |
Fair value, less than 12 months | $ 864,060 | $ 833,130 |
Gross unrealized losses, less than 12 months | $ (11,190) | $ (14,153) |
Available-for-sale, securities, greater than 12 months, number of issues (in issues) | issue | 14 | 14 |
Fair value, 12 months or longer | $ 46,482 | $ 50,970 |
Gross unrealized losses, 12 months or longer | (1,402) | (1,677) |
U.S. Treasury and federal agency obligations | ||
Available-for-sale securities | ||
Amortized cost | 187,289 | 193,515 |
Gross unrealized gains | 947 | 920 |
Gross unrealized losses | (1,653) | (2,154) |
Available-for-sale investment securities | $ 186,583 | $ 192,281 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Available-for-sale, securities, less than 12 months, number of issues (in issues) | issue | 16 | 18 |
Fair value, less than 12 months | $ 104,417 | $ 123,475 |
Gross unrealized losses, less than 12 months | $ (1,532) | $ (2,010) |
Available-for-sale, securities, greater than 12 months, number of issues (in issues) | issue | 1 | 1 |
Fair value, 12 months or longer | $ 3,186 | $ 3,485 |
Gross unrealized losses, 12 months or longer | (121) | (144) |
Mortgage-related securities- FNMA, FHLMC and GNMA | ||
Available-for-sale securities | ||
Amortized cost | 1,109,613 | 909,408 |
Gross unrealized gains | 2,202 | 1,742 |
Gross unrealized losses | (10,939) | (13,676) |
Available-for-sale investment securities | $ 1,100,876 | $ 897,474 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Available-for-sale, securities, less than 12 months, number of issues (in issues) | issue | 98 | 88 |
Fair value, less than 12 months | $ 759,643 | $ 709,655 |
Gross unrealized losses, less than 12 months | $ (9,658) | $ (12,143) |
Available-for-sale, securities, greater than 12 months, number of issues (in issues) | issue | 13 | 13 |
Fair value, 12 months or longer | $ 43,296 | $ 47,485 |
Gross unrealized losses, 12 months or longer | (1,281) | (1,533) |
Mortgage revenue bond | ||
Available-for-sale securities | ||
Amortized cost | 15,427 | 15,427 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Available-for-sale investment securities | $ 15,427 | $ 15,427 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Available-for-sale, securities, less than 12 months, number of issues (in issues) | issue | 0 | 0 |
Fair value, less than 12 months | $ 0 | $ 0 |
Gross unrealized losses, less than 12 months | $ 0 | $ 0 |
Available-for-sale, securities, greater than 12 months, number of issues (in issues) | issue | 0 | 0 |
Fair value, 12 months or longer | $ 0 | $ 0 |
Gross unrealized losses, 12 months or longer | $ 0 | $ 0 |
Bank segment - Contractual mat
Bank segment - Contractual maturities of securities (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)security | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Amortized cost | ||||
Due in one year or less | $ 9,992 | |||
Due after one year through five years | 77,151 | |||
Due after five years through ten years | 85,724 | |||
Due after ten years | 29,849 | |||
Total amortized cost | 202,716 | |||
Mortgage-related securities-FNMA, FHLMC and GNMA - amortized cost | 1,109,613 | |||
Amortized cost | 1,312,329 | $ 1,118,350 | ||
Fair value | ||||
Due in one year or less | 9,993 | |||
Due after one year through five years | 77,307 | |||
Due after five years through ten years | 85,258 | |||
Due after ten years | 29,452 | |||
Total fair value | 202,010 | |||
Mortgage-related securities-FNMA, FHLMC and GNMA - fair value | 1,100,876 | |||
Available-for-sale securities | $ 1,302,886 | $ 1,105,182 | ||
Gross realized gains from the sale of available-for-sale investment securities | $ 16,400 | $ 600 | ||
Gross realized losses from the sale of available-for-sale investment securities | $ 0 | $ 0 | ||
Number of available-for-sale investment securities sold during period | security | 0 |
Bank segment - Loans receivabl
Bank segment - Loans receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 4,747,756 | $ 4,743,619 |
Less: Deferred fees and discounts | (3,122) | (4,926) |
Allowance for loan losses | (56,356) | (55,533) |
Net loans | $ 4,688,278 | 4,683,160 |
Minimum benchmark percentage of loan to appraisal ratio which mortgage insurance is required | 80.00% | |
Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 3,896,900 | 3,873,346 |
Residential 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 2,061,549 | 2,048,051 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 808,900 | 800,395 |
Home equity line of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 883,135 | 863,163 |
Residential land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 16,009 | 18,889 |
Commercial construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 116,548 | 126,768 |
Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 10,759 | 16,080 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 649,657 | 692,051 |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 201,199 | $ 178,222 |
Bank segment - Allowance for l
Bank segment - Allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | $ 55,997 | $ 52,326 | $ 55,533 | $ 50,038 | |
Charge-offs | (3,234) | (2,505) | (7,574) | (5,463) | |
Recoveries | 759 | 757 | 1,656 | 1,237 | |
Provision | 2,834 | 4,753 | 6,741 | 9,519 | |
Valuation allowance, balance at the end of the period | 56,356 | 55,331 | 56,356 | 55,331 | |
Ending balance: individually evaluated for impairment | 3,129 | 3,129 | $ 4,083 | ||
Ending balance: collectively evaluated for impairment | 53,227 | 53,227 | 51,450 | ||
Financing Receivables: | |||||
Total financing receivables | 4,747,756 | 4,747,756 | 4,743,619 | ||
Ending balance: individually evaluated for impairment | 34,101 | 34,101 | 51,759 | ||
Ending balance: collectively evaluated for impairment | 4,713,655 | 4,713,655 | 4,691,860 | ||
Residential 1-4 family | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 2,781 | 4,593 | 2,873 | 4,186 | |
Charge-offs | 0 | (15) | (6) | (60) | |
Recoveries | 49 | 35 | 58 | 52 | |
Provision | 300 | (229) | 205 | 206 | |
Valuation allowance, balance at the end of the period | 3,130 | 4,384 | 3,130 | 4,384 | |
Ending balance: individually evaluated for impairment | 1,332 | 1,332 | 1,352 | ||
Ending balance: collectively evaluated for impairment | 1,798 | 1,798 | 1,521 | ||
Financing Receivables: | |||||
Total financing receivables | 2,061,549 | 2,061,549 | 2,048,051 | ||
Ending balance: individually evaluated for impairment | 19,188 | 19,188 | 19,854 | ||
Ending balance: collectively evaluated for impairment | 2,042,361 | 2,042,361 | 2,028,197 | ||
Commercial real estate | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 16,504 | 11,806 | 16,004 | 11,342 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 2,336 | 1,755 | 2,836 | 2,219 | |
Valuation allowance, balance at the end of the period | 18,840 | 13,561 | 18,840 | 13,561 | |
Ending balance: individually evaluated for impairment | 73 | 73 | 80 | ||
Ending balance: collectively evaluated for impairment | 18,767 | 18,767 | 15,924 | ||
Financing Receivables: | |||||
Total financing receivables | 808,900 | 808,900 | 800,395 | ||
Ending balance: individually evaluated for impairment | 1,289 | 1,289 | 1,569 | ||
Ending balance: collectively evaluated for impairment | 807,611 | 807,611 | 798,826 | ||
Home equity line of credit | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 5,417 | 7,172 | 5,039 | 7,260 | |
Charge-offs | 0 | 0 | (14) | 0 | |
Recoveries | 39 | 16 | 130 | 31 | |
Provision | 71 | 648 | 372 | 545 | |
Valuation allowance, balance at the end of the period | 5,527 | 7,836 | 5,527 | 7,836 | |
Ending balance: individually evaluated for impairment | 275 | 275 | 215 | ||
Ending balance: collectively evaluated for impairment | 5,252 | 5,252 | 4,824 | ||
Financing Receivables: | |||||
Total financing receivables | 883,135 | 883,135 | 863,163 | ||
Ending balance: individually evaluated for impairment | 6,684 | 6,684 | 6,158 | ||
Ending balance: collectively evaluated for impairment | 876,451 | 876,451 | 857,005 | ||
Residential land | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 1,479 | 1,740 | 1,738 | 1,671 | |
Charge-offs | (92) | 0 | (92) | 0 | |
Recoveries | 15 | 16 | 218 | 119 | |
Provision | (138) | (67) | (600) | (101) | |
Valuation allowance, balance at the end of the period | 1,264 | 1,689 | 1,264 | 1,689 | |
Ending balance: individually evaluated for impairment | 480 | 480 | 789 | ||
Ending balance: collectively evaluated for impairment | 784 | 784 | 949 | ||
Financing Receivables: | |||||
Total financing receivables | 16,009 | 16,009 | 18,889 | ||
Ending balance: individually evaluated for impairment | 2,589 | 2,589 | 3,629 | ||
Ending balance: collectively evaluated for impairment | 13,420 | 13,420 | 15,260 | ||
Commercial construction | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 7,257 | 6,164 | 6,449 | 4,461 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | (2,551) | 829 | (1,743) | 2,532 | |
Valuation allowance, balance at the end of the period | 4,706 | 6,993 | 4,706 | 6,993 | |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 4,706 | 4,706 | 6,449 | ||
Financing Receivables: | |||||
Total financing receivables | 116,548 | 116,548 | 126,768 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 116,548 | 116,548 | 126,768 | ||
Residential construction | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 11 | 12 | 12 | 13 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | (2) | 0 | (3) | (1) | |
Valuation allowance, balance at the end of the period | 9 | 12 | 9 | 12 | |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 9 | 9 | 12 | ||
Financing Receivables: | |||||
Total financing receivables | 10,759 | 10,759 | 16,080 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 10,759 | 10,759 | 16,080 | ||
Commercial loans | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 14,902 | 16,991 | 16,618 | 17,208 | |
Charge-offs | (752) | (962) | (2,262) | (2,305) | |
Recoveries | 299 | 425 | 596 | 560 | |
Provision | 103 | 631 | (400) | 1,622 | |
Valuation allowance, balance at the end of the period | 14,552 | 17,085 | 14,552 | 17,085 | |
Ending balance: individually evaluated for impairment | 939 | 939 | 1,641 | ||
Ending balance: collectively evaluated for impairment | 13,613 | 13,613 | 14,977 | ||
Financing Receivables: | |||||
Total financing receivables | 649,657 | 649,657 | 692,051 | ||
Ending balance: individually evaluated for impairment | 4,283 | 4,283 | 20,539 | ||
Ending balance: collectively evaluated for impairment | 645,374 | 645,374 | 671,512 | ||
Consumer loans | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 7,646 | 3,848 | 6,800 | 3,897 | |
Charge-offs | (2,390) | (1,528) | (5,200) | (3,098) | |
Recoveries | 357 | 265 | 654 | 475 | |
Provision | 2,715 | 1,186 | 6,074 | 2,497 | |
Valuation allowance, balance at the end of the period | 8,328 | 3,771 | 8,328 | 3,771 | |
Ending balance: individually evaluated for impairment | 30 | 30 | 6 | ||
Ending balance: collectively evaluated for impairment | 8,298 | 8,298 | 6,794 | ||
Financing Receivables: | |||||
Total financing receivables | 201,199 | 201,199 | 178,222 | ||
Ending balance: individually evaluated for impairment | 68 | 68 | 10 | ||
Ending balance: collectively evaluated for impairment | 201,131 | 201,131 | 178,212 | ||
Unallocated | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 0 | 0 | 0 | 0 | |
Valuation allowance, balance at the end of the period | 0 | $ 0 | 0 | $ 0 | |
Ending balance: collectively evaluated for impairment | $ 0 | $ 0 | $ 0 |
Bank segment - Credit risk pro
Bank segment - Credit risk profile - assigned grades (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | $ 808,900 | $ 800,395 |
Commercial real estate | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 660,015 | 701,657 |
Commercial real estate | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 95,656 | 65,541 |
Commercial real estate | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 53,229 | 33,197 |
Commercial real estate | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | 0 |
Commercial real estate | Loss | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | 0 |
Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 116,548 | 126,768 |
Commercial construction | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 92,069 | 102,955 |
Commercial construction | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 22,500 | 0 |
Commercial construction | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 1,979 | 23,813 |
Commercial construction | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | 0 |
Commercial construction | Loss | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | 0 |
Commercial loans | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 649,657 | 692,051 |
Commercial loans | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 602,903 | 614,139 |
Commercial loans | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 19,429 | 25,229 |
Commercial loans | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 27,325 | 52,683 |
Commercial loans | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | 0 |
Commercial loans | Loss | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | $ 0 | $ 0 |
Bank segment - Credit risk p49
Bank segment - Credit risk profile - payment activity (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Credit risk profile based on payment activity for loans | ||
Total past due | $ 20,860 | $ 23,102 |
Current | 4,726,896 | 4,720,517 |
Total financing receivables | 4,747,756 | 4,743,619 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 10,413 | 11,310 |
Current | 2,051,136 | 2,036,741 |
Total financing receivables | 2,061,549 | 2,048,051 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 2,416 |
Current | 808,900 | 797,979 |
Total financing receivables | 808,900 | 800,395 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 2,512 | 2,986 |
Current | 880,623 | 860,177 |
Total financing receivables | 883,135 | 863,163 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 305 | 255 |
Current | 15,704 | 18,634 |
Total financing receivables | 16,009 | 18,889 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Current | 116,548 | 126,768 |
Total financing receivables | 116,548 | 126,768 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Current | 10,759 | 16,080 |
Total financing receivables | 10,759 | 16,080 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Commercial loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 3,196 | 2,226 |
Current | 646,461 | 689,825 |
Total financing receivables | 649,657 | 692,051 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Consumer loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 4,434 | 3,909 |
Current | 196,765 | 174,313 |
Total financing receivables | 201,199 | 178,222 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 6,562 | 11,504 |
30-59 days past due | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 2,308 | 5,467 |
30-59 days past due | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 2,416 |
30-59 days past due | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 502 | 1,263 |
30-59 days past due | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
30-59 days past due | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
30-59 days past due | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
30-59 days past due | Commercial loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 1,486 | 413 |
30-59 days past due | Consumer loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 2,266 | 1,945 |
60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 5,107 | 4,230 |
60-89 days past due | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 2,694 | 2,338 |
60-89 days past due | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
60-89 days past due | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 494 | 381 |
60-89 days past due | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
60-89 days past due | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
60-89 days past due | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
60-89 days past due | Commercial loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 614 | 510 |
60-89 days past due | Consumer loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 1,305 | 1,001 |
Greater than 90 days | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 9,191 | 7,368 |
Greater than 90 days | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 5,411 | 3,505 |
Greater than 90 days | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Greater than 90 days | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 1,516 | 1,342 |
Greater than 90 days | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 305 | 255 |
Greater than 90 days | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Greater than 90 days | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Greater than 90 days | Commercial loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 1,096 | 1,303 |
Greater than 90 days | Consumer loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | $ 863 | $ 963 |
Bank segment - Credit risk p50
Bank segment - Credit risk profile - summary (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | $ 20,964 | $ 23,325 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 23,383 | 37,637 |
Residential 1-4 family | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 12,270 | 11,154 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 13,112 | 14,450 |
Commercial real estate | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 0 | 223 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 1,289 | 1,346 |
Home equity line of credit | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 4,306 | 3,080 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 4,548 | 4,934 |
Residential land | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 915 | 878 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 1,674 | 2,751 |
Commercial construction | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 0 | 0 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 0 | 0 |
Residential construction | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 0 | 0 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 0 | 0 |
Commercial loans | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 1,972 | 6,708 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 2,692 | 14,146 |
Consumer loans | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 1,501 | 1,282 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | $ 68 | $ 10 |
Bank segment - Principal balan
Bank segment - Principal balance of impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Recorded investment: | |||||
With no related allowance recorded | $ 14,492 | $ 14,492 | $ 18,811 | ||
With an allowance recorded | 19,609 | 19,609 | 32,948 | ||
Recorded investment | 34,101 | 34,101 | 51,759 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 18,725 | 18,725 | 23,200 | ||
With an allowance recorded | 19,840 | 19,840 | 33,205 | ||
Unpaid principal balance | 38,565 | 38,565 | 56,405 | ||
Related Allowance | 3,129 | 3,129 | 4,083 | ||
Average recorded investment: | |||||
With no related allowance recorded | 14,873 | $ 22,715 | 16,258 | $ 19,993 | |
With an allowance recorded | 19,880 | 37,610 | 22,582 | 36,893 | |
Average recorded investment | 34,753 | 60,325 | 38,840 | 56,886 | |
Interest income recognized: | |||||
With no related allowance recorded | 148 | 183 | 278 | 256 | |
With an allowance recorded | 271 | 377 | 891 | 623 | |
Interest income recognized | 419 | 560 | 1,169 | 879 | |
Residential 1-4 family | |||||
Recorded investment: | |||||
With no related allowance recorded | 9,364 | 9,364 | 9,571 | ||
With an allowance recorded | 9,824 | 9,824 | 10,283 | ||
Recorded investment | 19,188 | 19,188 | 19,854 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 9,963 | 9,963 | 10,400 | ||
With an allowance recorded | 10,027 | 10,027 | 10,486 | ||
Unpaid principal balance | 19,990 | 19,990 | 20,886 | ||
Related Allowance | 1,332 | 1,332 | 1,352 | ||
Average recorded investment: | |||||
With no related allowance recorded | 9,304 | 10,672 | 9,429 | 10,532 | |
With an allowance recorded | 10,054 | 11,982 | 10,051 | 12,000 | |
Average recorded investment | 19,358 | 22,654 | 19,480 | 22,532 | |
Interest income recognized: | |||||
With no related allowance recorded | 76 | 152 | 160 | 203 | |
With an allowance recorded | 117 | 115 | 236 | 237 | |
Interest income recognized | 193 | 267 | 396 | 440 | |
Commercial real estate | |||||
Recorded investment: | |||||
With no related allowance recorded | 0 | 0 | 223 | ||
With an allowance recorded | 1,289 | 1,289 | 1,346 | ||
Recorded investment | 1,289 | 1,289 | 1,569 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 0 | 0 | 228 | ||
With an allowance recorded | 1,289 | 1,289 | 1,346 | ||
Unpaid principal balance | 1,289 | 1,289 | 1,574 | ||
Related Allowance | 73 | 73 | 80 | ||
Average recorded investment: | |||||
With no related allowance recorded | 143 | 1,152 | 182 | 1,163 | |
With an allowance recorded | 1,292 | 2,519 | 1,296 | 1,686 | |
Average recorded investment | 1,435 | 3,671 | 1,478 | 2,849 | |
Interest income recognized: | |||||
With no related allowance recorded | 11 | 0 | 11 | 0 | |
With an allowance recorded | 14 | 0 | 28 | 0 | |
Interest income recognized | 25 | 0 | 39 | 0 | |
Home equity line of credit | |||||
Recorded investment: | |||||
With no related allowance recorded | 2,287 | 2,287 | 1,500 | ||
With an allowance recorded | 4,397 | 4,397 | 4,658 | ||
Recorded investment | 6,684 | 6,684 | 6,158 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 2,707 | 2,707 | 1,900 | ||
With an allowance recorded | 4,425 | 4,425 | 4,712 | ||
Unpaid principal balance | 7,132 | 7,132 | 6,612 | ||
Related Allowance | 275 | 275 | 215 | ||
Average recorded investment: | |||||
With no related allowance recorded | 2,401 | 1,038 | 2,203 | 943 | |
With an allowance recorded | 4,372 | 3,299 | 4,467 | 3,122 | |
Average recorded investment | 6,773 | 4,337 | 6,670 | 4,065 | |
Interest income recognized: | |||||
With no related allowance recorded | 51 | 9 | 65 | 9 | |
With an allowance recorded | 47 | 28 | 96 | 55 | |
Interest income recognized | 98 | 37 | 161 | 64 | |
Residential land | |||||
Recorded investment: | |||||
With no related allowance recorded | 1,249 | 1,249 | 1,218 | ||
With an allowance recorded | 1,340 | 1,340 | 2,411 | ||
Recorded investment | 2,589 | 2,589 | 3,629 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 1,788 | 1,788 | 1,803 | ||
With an allowance recorded | 1,340 | 1,340 | 2,411 | ||
Unpaid principal balance | 3,128 | 3,128 | 4,214 | ||
Related Allowance | 480 | 480 | 789 | ||
Average recorded investment: | |||||
With no related allowance recorded | 1,075 | 1,484 | 1,016 | 1,537 | |
With an allowance recorded | 1,532 | 2,977 | 1,804 | 3,177 | |
Average recorded investment | 2,607 | 4,461 | 2,820 | 4,714 | |
Interest income recognized: | |||||
With no related allowance recorded | 8 | 15 | 34 | 31 | |
With an allowance recorded | 24 | 54 | 61 | 121 | |
Interest income recognized | 32 | 69 | 95 | 152 | |
Commercial construction | |||||
Recorded investment: | |||||
With no related allowance recorded | 0 | 0 | 0 | ||
With an allowance recorded | 0 | 0 | 0 | ||
Recorded investment | 0 | 0 | 0 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 0 | 0 | 0 | ||
With an allowance recorded | 0 | 0 | 0 | ||
Unpaid principal balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average recorded investment: | |||||
With no related allowance recorded | 0 | 0 | 0 | 0 | |
With an allowance recorded | 0 | 0 | 0 | 0 | |
Average recorded investment | 0 | 0 | 0 | 0 | |
Interest income recognized: | |||||
With no related allowance recorded | 0 | 0 | 0 | 0 | |
With an allowance recorded | 0 | 0 | 0 | 0 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Residential construction | |||||
Recorded investment: | |||||
With no related allowance recorded | 0 | 0 | 0 | ||
With an allowance recorded | 0 | 0 | 0 | ||
Recorded investment | 0 | 0 | 0 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 0 | 0 | 0 | ||
With an allowance recorded | 0 | 0 | 0 | ||
Unpaid principal balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average recorded investment: | |||||
With no related allowance recorded | 0 | 0 | 0 | 0 | |
With an allowance recorded | 0 | 0 | 0 | 0 | |
Average recorded investment | 0 | 0 | 0 | 0 | |
Interest income recognized: | |||||
With no related allowance recorded | 0 | 0 | 0 | 0 | |
With an allowance recorded | 0 | 0 | 0 | 0 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Commercial loans | |||||
Recorded investment: | |||||
With no related allowance recorded | 1,592 | 1,592 | 6,299 | ||
With an allowance recorded | 2,691 | 2,691 | 14,240 | ||
Recorded investment | 4,283 | 4,283 | 20,539 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 4,267 | 4,267 | 8,869 | ||
With an allowance recorded | 2,691 | 2,691 | 14,240 | ||
Unpaid principal balance | 6,958 | 6,958 | 23,109 | ||
Related Allowance | 939 | 939 | 1,641 | ||
Average recorded investment: | |||||
With no related allowance recorded | 1,949 | 8,369 | 3,428 | 5,818 | |
With an allowance recorded | 2,562 | 16,821 | 4,915 | 16,896 | |
Average recorded investment | 4,511 | 25,190 | 8,343 | 22,714 | |
Interest income recognized: | |||||
With no related allowance recorded | 2 | 7 | 8 | 13 | |
With an allowance recorded | 68 | 180 | 469 | 210 | |
Interest income recognized | 70 | 187 | 477 | 223 | |
Consumer loans | |||||
Recorded investment: | |||||
With no related allowance recorded | 0 | 0 | 0 | ||
With an allowance recorded | 68 | 68 | 10 | ||
Recorded investment | 68 | 68 | 10 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 0 | 0 | 0 | ||
With an allowance recorded | 68 | 68 | 10 | ||
Unpaid principal balance | 68 | 68 | 10 | ||
Related Allowance | 30 | 30 | $ 6 | ||
Average recorded investment: | |||||
With no related allowance recorded | 1 | 0 | 0 | 0 | |
With an allowance recorded | 68 | 12 | 49 | 12 | |
Average recorded investment | 69 | 12 | 49 | 12 | |
Interest income recognized: | |||||
With no related allowance recorded | 0 | 0 | 0 | 0 | |
With an allowance recorded | 1 | 0 | 1 | 0 | |
Interest income recognized | $ 1 | $ 0 | $ 1 | $ 0 |
Bank segment - Troubled debt r
Bank segment - Troubled debt restructuring - narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Troubled debt restructurings real estate loans | ||
Troubled debt restructurings | ||
Financing receivable modifications minimum, period of payment default of loans determined to be TDRs (in days) | 90 days | |
Commitments to lend additional funds to borrows with impaired or modified loans | $ 0 | $ 2,600,000 |
Consumer mortgage loans collateralized by residential real estate property in foreclosure process | $ 4,600,000 | $ 3,600,000 |
Land loans | ||
Troubled debt restructurings | ||
Period of interest-only monthly payment term loan (in years) | 3 years | |
Land loans | Maximum | ||
Troubled debt restructurings | ||
Extension of maturity date (in years) | 5 years |
Bank segment - Loan modificati
Bank segment - Loan modifications (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($)contract | Jun. 30, 2016USD ($)contract | Jun. 30, 2017USD ($)contract | Jun. 30, 2016USD ($)contract | Dec. 31, 2016USD ($) | |
Financing Receivable, Modifications [Line Items] | |||||
Post-modification outstanding recorded investment | $ 23,383 | $ 37,637 | |||
Residential 1-4 family | |||||
Financing Receivable, Modifications [Line Items] | |||||
Post-modification outstanding recorded investment | 13,112 | 14,450 | |||
Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Post-modification outstanding recorded investment | 1,289 | 1,346 | |||
Home equity line of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Post-modification outstanding recorded investment | 4,548 | 4,934 | |||
Residential land | |||||
Financing Receivable, Modifications [Line Items] | |||||
Post-modification outstanding recorded investment | 1,674 | 2,751 | |||
Commercial construction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Post-modification outstanding recorded investment | 0 | 0 | |||
Residential construction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Post-modification outstanding recorded investment | 0 | 0 | |||
Commercial loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Post-modification outstanding recorded investment | 2,692 | 14,146 | |||
Consumer loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Post-modification outstanding recorded investment | $ 68 | $ 10 | |||
Troubled debt restructurings real estate loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of contracts (in contracts) | contract | 7 | 19 | 20 | 36 | |
Pre-modification outstanding recorded investment | $ 658 | $ 2,236 | $ 1,797 | $ 20,202 | |
Post-modification outstanding recorded investment | 658 | 2,231 | 1,791 | 20,315 | |
Net increase in allowance | $ 59 | $ 424 | $ 165 | $ 1,184 | |
Troubled debt restructurings real estate loans | Residential 1-4 family | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of contracts (in contracts) | contract | 2 | 5 | 5 | 9 | |
Pre-modification outstanding recorded investment | $ 360 | $ 891 | $ 872 | $ 1,988 | |
Post-modification outstanding recorded investment | 360 | 885 | 880 | 2,100 | |
Net increase in allowance | $ 0 | $ 98 | $ 45 | $ 259 | |
Troubled debt restructurings real estate loans | Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of contracts (in contracts) | contract | 0 | 0 | 0 | 0 | |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Post-modification outstanding recorded investment | 0 | 0 | 0 | 0 | |
Net increase in allowance | $ 0 | $ 0 | $ 0 | $ 0 | |
Troubled debt restructurings real estate loans | Home equity line of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of contracts (in contracts) | contract | 5 | 8 | 13 | 18 | |
Pre-modification outstanding recorded investment | $ 298 | $ 768 | $ 524 | $ 1,437 | |
Post-modification outstanding recorded investment | 298 | 768 | 510 | 1,437 | |
Net increase in allowance | $ 59 | $ 181 | $ 93 | $ 255 | |
Troubled debt restructurings real estate loans | Residential land | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of contracts (in contracts) | contract | 0 | 1 | 0 | 1 | |
Pre-modification outstanding recorded investment | $ 0 | $ 120 | $ 0 | $ 120 | |
Post-modification outstanding recorded investment | 0 | 121 | 0 | 121 | |
Net increase in allowance | $ 0 | $ 0 | $ 0 | $ 0 | |
Troubled debt restructurings real estate loans | Commercial construction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of contracts (in contracts) | contract | 0 | 0 | 0 | 0 | |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Post-modification outstanding recorded investment | 0 | 0 | 0 | 0 | |
Net increase in allowance | $ 0 | $ 0 | $ 0 | $ 0 | |
Troubled debt restructurings real estate loans | Residential construction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of contracts (in contracts) | contract | 0 | 0 | 0 | 0 | |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Post-modification outstanding recorded investment | 0 | 0 | 0 | 0 | |
Net increase in allowance | $ 0 | $ 0 | $ 0 | $ 0 | |
Troubled debt restructurings real estate loans | Commercial loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of contracts (in contracts) | contract | 0 | 5 | 1 | 8 | |
Pre-modification outstanding recorded investment | $ 0 | $ 457 | $ 342 | $ 16,657 | |
Post-modification outstanding recorded investment | 0 | 457 | 342 | 16,657 | |
Net increase in allowance | $ 0 | $ 145 | $ 0 | $ 670 | |
Troubled debt restructurings real estate loans | Consumer loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of contracts (in contracts) | contract | 0 | 0 | 1 | 0 | |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 59 | $ 0 | |
Post-modification outstanding recorded investment | 0 | 0 | 59 | 0 | |
Net increase in allowance | $ 0 | $ 0 | $ 27 | $ 0 |
Bank segment - Troubled debt54
Bank segment - Troubled debt restructuring that subsequently defaulted (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)contract | Jun. 30, 2016USD ($)contract | Jun. 30, 2017USD ($)contract | Jun. 30, 2016USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts (in contracts) | contract | 1 | 1 | 2 | 2 |
Recorded investment | $ | $ 222 | $ 26 | $ 523 | $ 514 |
Residential 1-4 family | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts (in contracts) | contract | 1 | 0 | 2 | 1 |
Recorded investment | $ | $ 222 | $ 0 | $ 523 | $ 488 |
Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts (in contracts) | contract | 0 | 0 | 0 | 0 |
Recorded investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Home equity line of credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts (in contracts) | contract | 0 | 0 | 0 | 0 |
Recorded investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Residential land | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts (in contracts) | contract | 0 | 0 | 0 | 0 |
Recorded investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial construction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts (in contracts) | contract | 0 | 0 | 0 | 0 |
Recorded investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Residential construction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts (in contracts) | contract | 0 | 0 | 0 | 0 |
Recorded investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts (in contracts) | contract | 0 | 1 | 0 | 1 |
Recorded investment | $ | $ 0 | $ 26 | $ 0 | $ 26 |
Consumer loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts (in contracts) | contract | 0 | 0 | 0 | 0 |
Recorded investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Bank segment - Mortgage servic
Bank segment - Mortgage servicing rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Servicing Asset at Amortized Cost [Line Items] | ||||||||
Repurchase reserve | $ 100 | $ 100 | ||||||
Valuation Allowance [Roll Forward] | ||||||||
Weighted average discount rate (as a percent) | 2.82% | |||||||
American Savings Bank (ASB) | ||||||||
Servicing Asset at Amortized Cost [Line Items] | ||||||||
Mortgage service fees | $ 700 | $ 700 | $ 1,500 | $ 1,400 | ||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||||||
Servicing asset - beginning balance | 9,373 | |||||||
Servicing asset - ending balance | 9,181 | 9,181 | $ 9,373 | |||||
American Savings Bank (ASB) | Mortgage Servicing Rights (MSR) | ||||||||
Servicing Asset at Amortized Cost [Line Items] | ||||||||
Gross carrying amount | 18,069 | $ 17,271 | ||||||
Accumulated amortization | (8,888) | (7,898) | ||||||
Valuation allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net carrying amount | 9,181 | 9,373 | $ 9,016 | |||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||||||
Servicing asset - beginning balance | 9,294 | 8,857 | 9,373 | 8,884 | 8,884 | |||
Amount capitalized | 362 | 665 | 798 | 1,120 | ||||
Amortization | (475) | (506) | (990) | (988) | ||||
Other-than-temporary impairment | 0 | 0 | 0 | 0 | ||||
Servicing asset - ending balance | 9,181 | 9,016 | 9,181 | 9,016 | 9,373 | |||
Valuation Allowance [Roll Forward] | ||||||||
Valuation allowance, beginning balance | 0 | 0 | 0 | 0 | 0 | |||
Provision (recovery) | 0 | 0 | 0 | 0 | ||||
Other-than-temporary impairment | 0 | 0 | 0 | 0 | ||||
Valuation allowance, ending balance | 0 | 0 | $ 0 | 0 | $ 0 | |||
Unpaid principal balance | 1,208,404 | 1,188,380 | ||||||
Weighted average note-rate (as a percent) | 3.95% | 3.96% | ||||||
Weighted average discount rate (as a percent) | 10.00% | 9.40% | ||||||
Weighted average prepayment speed (as a percent) | 8.80% | 8.50% | ||||||
Prepayment rate - 25 points adverse rate change | (939) | (567) | ||||||
Prepayment rate - 50 points adverse rate change | (2,048) | (1,154) | ||||||
Discount rate - 25 points adverse rate change | (115) | (128) | ||||||
Discount rate - 50 points adverse rate change | $ (227) | $ (254) | ||||||
American Savings Bank (ASB) | Measurement Band A | ||||||||
Valuation Allowance [Roll Forward] | ||||||||
Measurement band percent for risk categorization | 0.50% | |||||||
American Savings Bank (ASB) | Measurement Band B | ||||||||
Valuation Allowance [Roll Forward] | ||||||||
Measurement band percent for risk categorization | 1.00% | |||||||
American Savings Bank (ASB) | Residential loan | ||||||||
Servicing Asset at Amortized Cost [Line Items] | ||||||||
Proceeds from sale of mortgage loans | 39,300 | 58,100 | $ 79,900 | 98,500 | ||||
Gain on sale of mortgage loans | $ 600 | $ 1,500 | $ 1,400 | $ 2,700 |
Bank segment - Repurchase Agre
Bank segment - Repurchase Agreements (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Offsetting Liabilities [Line Items] | ||
Gross amount of recognized liabilities | $ 88 | $ 93 |
Gross amount offset in the Balance Sheet | 0 | 0 |
Securities sold under agreements to repurchase | 88 | 93 |
Securities sold under agreements to repurchase collateral, financial instruments | 120 | 116 |
Securities sold under agreements to repurchase, cash collateral pledged | 0 | 0 |
Financial Institution | ||
Offsetting Liabilities [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Securities sold under agreements to repurchase collateral, financial instruments | 0 | 0 |
Securities sold under agreements to repurchase, cash collateral pledged | 0 | 0 |
Government Entities | ||
Offsetting Liabilities [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 14 |
Securities sold under agreements to repurchase collateral, financial instruments | 0 | 15 |
Securities sold under agreements to repurchase, cash collateral pledged | 0 | 0 |
Commercial account holders | ||
Offsetting Liabilities [Line Items] | ||
Securities sold under agreements to repurchase | 88 | 79 |
Securities sold under agreements to repurchase collateral, financial instruments | 120 | 101 |
Securities sold under agreements to repurchase, cash collateral pledged | $ 0 | $ 0 |
Bank segment - Derivatives (De
Bank segment - Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Derivative instrument | |||||
Net gains (losses) recognized in the Statement of Income | $ 1 | $ 66 | $ (30) | $ 174 | |
Not designated as a hedging instrument | |||||
Derivative instrument | |||||
Asset derivatives | 230 | 230 | $ 453 | ||
Liability derivatives | 16 | 16 | 209 | ||
Interest rate lock commitments | |||||
Derivative instrument | |||||
Notional amount | 22,737 | 22,737 | 25,883 | ||
Fair value | 126 | 126 | 421 | ||
Interest rate lock commitments | Not designated as a hedging instrument | |||||
Derivative instrument | |||||
Asset derivatives | 142 | 142 | 445 | ||
Liability derivatives | 16 | 16 | 24 | ||
Interest rate lock commitments | Not designated as a hedging instrument | Mortgage banking income | |||||
Derivative instrument | |||||
Net gains (losses) recognized in the Statement of Income | (191) | 140 | (295) | 411 | |
Forward commitments | |||||
Derivative instrument | |||||
Notional amount | 22,925 | 22,925 | 30,813 | ||
Fair value | 88 | 88 | (177) | ||
Forward commitments | Not designated as a hedging instrument | |||||
Derivative instrument | |||||
Asset derivatives | 88 | 88 | 8 | ||
Liability derivatives | 0 | 0 | $ 185 | ||
Forward commitments | Not designated as a hedging instrument | Mortgage banking income | |||||
Derivative instrument | |||||
Net gains (losses) recognized in the Statement of Income | $ 192 | $ (74) | $ 265 | $ (237) |
Bank segment - Contingencies (
Bank segment - Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
American Savings Bank (ASB) | ||
Loss Contingencies [Line Items] | ||
Unfunded commitments to fund the company's LIHTC | $ 14.3 | $ 14 |
Credit agreements and long-te59
Credit agreements and long-term debt (Details) | Jun. 29, 2017USD ($) | Jun. 30, 2017USD ($)Institution | Dec. 31, 2016USD ($) |
Credit agreement | |||
Number of financial institutions (in institutions) | Institution | 8 | ||
Line of credit facility | |||
Credit agreement | |||
Revolving noncollateralized credit facility with a letter of credit sub-facility | $ 150,000,000 | ||
Amount outstanding under facilities | 0 | $ 0 | |
Line of credit facility | Hawaiian Electric Company | |||
Credit agreement | |||
Revolving noncollateralized credit facility with a letter of credit sub-facility | 200,000,000 | ||
Amount outstanding under facilities | $ 0 | $ 0 | |
Special Purpose Revenue Bonds | Refunding Series 2017A Special Purpose Revenue Bonds | |||
Credit agreement | |||
Aggregate principal amount | $ 125,000,000 | ||
Fixed coupon interest rate | 3.10% | ||
Special Purpose Revenue Bonds | Refunding Series 2017B Special Purpose Revenue Bonds | |||
Credit agreement | |||
Aggregate principal amount | $ 140,000,000 | ||
Fixed coupon interest rate | 4.00% | ||
Special Purpose Revenue Bonds | Refunding Series 2007B Special Purpose Revenue Bonds | |||
Credit agreement | |||
Fixed coupon interest rate | 4.60% | ||
Aggregate principal amount | $ 125,000,000 | ||
Special Purpose Revenue Bonds | Series 2007A Special Purpose Revenue Bonds | |||
Credit agreement | |||
Fixed coupon interest rate | 4.65% | ||
Aggregate principal amount | $ 140,000,000 | ||
Special Purpose Revenue Bonds | Hawaiian Electric Company | Refunding Series 2017A Special Purpose Revenue Bonds | |||
Credit agreement | |||
Proceeds from Department loan | 62,000,000 | ||
Special Purpose Revenue Bonds | Hawaiian Electric Company | Refunding Series 2017B Special Purpose Revenue Bonds | |||
Credit agreement | |||
Proceeds from Department loan | 100,000,000 | ||
Special Purpose Revenue Bonds | HELCO | Refunding Series 2017A Special Purpose Revenue Bonds | |||
Credit agreement | |||
Proceeds from Department loan | 8,000,000 | ||
Special Purpose Revenue Bonds | HELCO | Refunding Series 2017B Special Purpose Revenue Bonds | |||
Credit agreement | |||
Proceeds from Department loan | 20,000,000 | ||
Special Purpose Revenue Bonds | Maui Electric | Refunding Series 2017A Special Purpose Revenue Bonds | |||
Credit agreement | |||
Proceeds from Department loan | 55,000,000 | ||
Special Purpose Revenue Bonds | Maui Electric | Refunding Series 2017B Special Purpose Revenue Bonds | |||
Credit agreement | |||
Proceeds from Department loan | $ 20,000,000 |
Shareholders' equity - Accumula
Shareholders' equity - Accumulated other comprehensive income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Beginning Balance | $ 2,066,753 | $ 1,927,640 | ||
Current period other comprehensive income | $ 2,370 | $ 2,108 | 3,355 | 10,908 |
Ending Balance | 2,075,029 | 1,966,182 | 2,075,029 | 1,966,182 |
AOCI | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Beginning Balance | (33,129) | (26,262) | ||
Current period other comprehensive income | 3,355 | 10,908 | ||
Ending Balance | (29,774) | (15,354) | (29,774) | (15,354) |
Net unrealized gains (losses) on securities | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Beginning Balance | (7,931) | (1,872) | ||
Current period other comprehensive income | 2,244 | 9,984 | ||
Ending Balance | (5,687) | 8,112 | (5,687) | 8,112 |
Unrealized gains (losses) on derivatives | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Beginning Balance | (454) | (54) | ||
Current period other comprehensive income | 454 | 311 | ||
Ending Balance | 0 | 257 | 0 | 257 |
Retirement benefit plans | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Beginning Balance | (24,744) | (24,336) | ||
Current period other comprehensive income | 657 | 613 | ||
Ending Balance | (24,087) | (23,723) | (24,087) | (23,723) |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Beginning Balance | 1,799,787 | 1,728,325 | ||
Current period other comprehensive income | 40 | (755) | 499 | 261 |
Ending Balance | 1,803,506 | 1,743,006 | 1,803,506 | 1,743,006 |
Hawaiian Electric Company, Inc. and Subsidiaries | AOCI | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Beginning Balance | (322) | 925 | ||
Current period other comprehensive income | 499 | 261 | ||
Ending Balance | 177 | 1,186 | 177 | 1,186 |
Hawaiian Electric Company, Inc. and Subsidiaries | Unrealized gains (losses) on derivatives | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Beginning Balance | (454) | 0 | ||
Current period other comprehensive income | 454 | 257 | ||
Ending Balance | 0 | 257 | 0 | 257 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Beginning Balance | 132 | 925 | ||
Current period other comprehensive income | 45 | 4 | ||
Ending Balance | $ 177 | $ 929 | $ 177 | $ 929 |
Shareholders' equity - Reclassi
Shareholders' equity - Reclassification out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total revenues | $ 632,281 | $ 566,244 | $ 1,223,843 | $ 1,117,204 |
Interest expense | 20,440 | 17,301 | 40,008 | 37,427 |
Total reclassifications | 349 | (63) | 1,111 | 307 |
Electric utility | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total revenues | 556,875 | 495,395 | 1,075,486 | 977,447 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total revenues | 556,875 | 495,395 | 1,075,486 | 977,447 |
Total reclassifications | 40 | (10) | 499 | 4 |
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 3,930 | 3,698 | 7,851 | 7,236 |
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 3,621 | 3,391 | 7,239 | 6,627 |
Impact of D&Os of the PUC included in regulatory assets | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 3,581 | 3,401 | 7,194 | 6,623 |
Impact of D&Os of the PUC included in regulatory assets | Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 3,581 | 3,401 | 7,194 | 6,623 |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on securities | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Revenues-bank (net gains on sales of securities) | 0 | 360 | 0 | 360 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivatives | Interest rate contracts | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Interest expense | 0 | 0 | 0 | 54 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivatives | Electric utility | Forward commitments | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total revenues | 0 | 0 | 454 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivatives | Hawaiian Electric Company, Inc. and Subsidiaries | Electric utility | Forward commitments | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total revenues | $ 0 | $ 0 | $ 454 | $ 0 |
Retirement benefits (Details)
Retirement benefits (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Defined benefit plans | |||||
Expected payments for remainder of fiscal year | $ 2,000,000 | $ 2,000,000 | |||
Payments for benefits | $ 2,000,000 | ||||
Retirement benefits expense | $ 17,000,000 | $ 18,000,000 | |||
Number of years for which regulatory asset/liability for each utility will be amortized, beginning with respective utility's next rate case (in years) | 5 years | ||||
Defined contribution plan, expenses recognized | $ 3,300,000 | 2,800,000 | |||
Cash contributions by the employer to defined contribution plan | 4,000,000 | 3,700,000 | |||
Pension benefits | |||||
Defined benefit plans | |||||
Contributions made to defined benefit plans | 33,000,000 | 33,000,000 | |||
Contributions expected to be paid in current year | 67,000,000 | 65,000,000 | |||
Service cost | 15,870,000 | $ 14,913,000 | 32,364,000 | 30,304,000 | |
Interest cost | 20,361,000 | 20,481,000 | 40,577,000 | 40,758,000 | |
Expected return on plan assets | (25,646,000) | (24,616,000) | (51,367,000) | (49,280,000) | |
Amortization of net prior service gain | (13,000) | (14,000) | (27,000) | (28,000) | |
Amortization of net actuarial loss | 6,707,000 | 6,408,000 | 13,220,000 | 12,377,000 | |
Net periodic pension/benefit cost | 17,279,000 | 17,172,000 | 34,767,000 | 34,131,000 | |
Impact of PUC D&Os | (4,867,000) | (4,765,000) | (10,023,000) | (8,811,000) | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 12,412,000 | 12,407,000 | 24,744,000 | 25,320,000 | |
Pension benefits | American Savings Bank (ASB) | |||||
Defined benefit plans | |||||
Contributions expected to be paid in current year | 0 | 0 | |||
Other benefits | |||||
Defined benefit plans | |||||
Service cost | 847,000 | 832,000 | 1,687,000 | 1,668,000 | |
Interest cost | 2,315,000 | 2,363,000 | 4,726,000 | 4,837,000 | |
Expected return on plan assets | (3,104,000) | (3,091,000) | (6,170,000) | (6,143,000) | |
Amortization of net prior service gain | (448,000) | (448,000) | (897,000) | (896,000) | |
Amortization of net actuarial loss | 199,000 | 116,000 | 565,000 | 403,000 | |
Net periodic pension/benefit cost | (191,000) | (228,000) | (89,000) | (131,000) | |
Impact of PUC D&Os | 527,000 | 483,000 | 673,000 | 672,000 | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 336,000 | 255,000 | 584,000 | 541,000 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Defined benefit plans | |||||
Expected payments for remainder of fiscal year | 1,000,000 | 1,000,000 | |||
Payments for benefits | 1,000,000 | ||||
Retirement benefits expense | 15,000,000 | 16,000,000 | |||
Defined contribution plan, expenses recognized | 1,000,000 | 800,000 | |||
Cash contributions by the employer to defined contribution plan | 1,000,000 | 800,000 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | Pension benefits | |||||
Defined benefit plans | |||||
Contributions made to defined benefit plans | 33,000,000 | 32,000,000 | |||
Contributions expected to be paid in current year | 66,000,000 | 64,000,000 | |||
Service cost | 15,436,000 | 14,465,000 | 31,530,000 | 29,398,000 | |
Interest cost | 18,726,000 | 18,801,000 | 37,315,000 | 37,404,000 | |
Expected return on plan assets | (23,935,000) | (22,885,000) | (47,946,000) | (45,817,000) | |
Amortization of net prior service gain | 2,000 | 3,000 | 4,000 | 7,000 | |
Amortization of net actuarial loss | 6,190,000 | 5,885,000 | 12,196,000 | 11,346,000 | |
Net periodic pension/benefit cost | 16,419,000 | 16,269,000 | 33,099,000 | 32,338,000 | |
Impact of PUC D&Os | (4,867,000) | (4,765,000) | (10,023,000) | (8,811,000) | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 11,552,000 | 11,504,000 | 23,076,000 | 23,527,000 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Other benefits | |||||
Defined benefit plans | |||||
Service cost | 841,000 | 820,000 | 1,676,000 | 1,642,000 | |
Interest cost | 2,231,000 | 2,280,000 | 4,558,000 | 4,669,000 | |
Expected return on plan assets | (3,056,000) | (3,046,000) | (6,073,000) | (6,049,000) | |
Amortization of net prior service gain | (451,000) | (451,000) | (902,000) | (902,000) | |
Amortization of net actuarial loss | 192,000 | 113,000 | 551,000 | 397,000 | |
Net periodic pension/benefit cost | (243,000) | (284,000) | (190,000) | (243,000) | |
Impact of PUC D&Os | 527,000 | 483,000 | 673,000 | 672,000 | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | $ 284,000 | $ 199,000 | 483,000 | $ 429,000 | |
Hawaiian Electric Industries, Inc. | Pension benefits | |||||
Defined benefit plans | |||||
Contributions expected to be paid in current year | $ 1,000,000 | $ 1,000,000 |
Share-based compensation - Narr
Share-based compensation - Narrative (Details) - USD ($) $ in Millions | Mar. 01, 2014 | Jul. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Share-based compensation | ||||||
Income tax benefit from compensation expense | $ 0.8 | $ 0.4 | $ 1.2 | $ 0.7 | ||
Restricted stock units | ||||||
Share-based compensation | ||||||
Fair value measurement of vested units and related dividends | 3.3 | 2.6 | ||||
Income tax benefit from compensation expense | 1.2 | 0.9 | ||||
Unrecognized share based compensation | 5.4 | $ 5.4 | ||||
Weighted average period for recognition of unrecognized compensation cost (in years) | 2 years 9 months 18 days | |||||
Long-term Incentive Plan | ||||||
Share-based compensation | ||||||
Payment award, low end of range (as a percent) | 0.00% | |||||
Payment award, high end of range (as a percent) | 200.00% | |||||
Award performance period (in years) | 3 years | |||||
LTIP linked to TRS | ||||||
Share-based compensation | ||||||
Fair value measurement of vested units and related dividends | $ 1.9 | |||||
Unrecognized share based compensation | 1.1 | $ 1.1 | ||||
Weighted average period for recognition of unrecognized compensation cost (in years) | 2 years 6 months | |||||
Measurement period for total return to shareholders (in years) | 3 years | |||||
Tax benefits related to awards vested | $ 0.7 | |||||
LTIP awards linked to other performance conditions | ||||||
Share-based compensation | ||||||
Fair value measurement of vested units and related dividends | 4.2 | 3.6 | ||||
Income tax benefit from compensation expense | 1.6 | $ 1.4 | ||||
Unrecognized share based compensation | $ 3.8 | $ 3.8 | ||||
Weighted average period for recognition of unrecognized compensation cost (in years) | 2 years 6 months | |||||
Equity and Incentive Plan | ||||||
Share-based compensation | ||||||
Number of additional shares authorized (in shares) | 1,500,000 | |||||
Shares available for future issuance (in shares) | 3,300,000 | 3,300,000 | ||||
Number of share issuable upon vesting and achievement of performance goals (in shares) | 400,000 | 400,000 | ||||
Nonemployee Director Stock Plan | ||||||
Share-based compensation | ||||||
Shares available for future grant (in shares) | 85,428 | 85,428 | ||||
Fair value measurement of vested units and related dividends | $ 0.2 |
Share-based compensation - Summ
Share-based compensation - Summary of income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based compensation | ||||
Share-based compensation expense | $ 2.2 | $ 1 | $ 3.3 | $ 2 |
Income tax benefit | 0.8 | 0.4 | 1.2 | 0.7 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Share-based compensation | ||||
Share-based compensation expense | 0.7 | 0.3 | 1.1 | 0.6 |
Income tax benefit | $ 0.3 | $ 0.1 | $ 0.4 | $ 0.2 |
Share-based compensation - 2011
Share-based compensation - 2011 Director Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based compensation | ||||
Income tax benefit from compensation expense | $ 0.8 | $ 0.4 | $ 1.2 | $ 0.7 |
Common stock | ||||
Share-based compensation | ||||
Shares granted (in shares) | 35,000 | 0 | 35,770 | 0 |
Fair value measurement of shares granted and vested | $ 1.1 | $ 0 | $ 1.2 | $ 0 |
Income tax benefit from compensation expense | $ 0.4 | $ 0 | $ 0.5 | $ 0 |
Share-based compensation - Su66
Share-based compensation - Summary of changes in share based compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restricted stock units | ||||
Restricted stock awards and restricted stock units | ||||
Outstanding, beginning of period (in shares) | 236,036 | 226,537 | 220,683 | 210,634 |
Granted (in shares) | 896 | 0 | 97,873 | 94,282 |
Vested (in shares) | (7,370) | (785) | (88,994) | (79,164) |
Forfeited (in shares) | (23,079) | 0 | (23,079) | 0 |
Outstanding, end of period (in shares) | 206,483 | 225,752 | 206,483 | 225,752 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 31.42 | $ 29.59 | $ 29.57 | $ 28.82 |
Granted (in dollars per share) | 33.06 | 0 | 33.47 | 29.90 |
Vested (in dollars per share) | 29.17 | 27.88 | 28.88 | 27.91 |
Forfeited (in dollars per share) | 31.50 | 0 | 31.50 | 0 |
Outstanding, end of period (in dollars per share) | $ 31.50 | $ 29.59 | $ 31.50 | $ 29.59 |
Total weighted-average grant-date fair value | $ 0 | $ 0 | $ 3.3 | $ 2.8 |
LTIP linked to TRS | ||||
Restricted stock awards and restricted stock units | ||||
Outstanding, beginning of period (in shares) | 36,971 | 83,947 | 83,106 | 162,500 |
Granted (in shares) | 233 | 0 | 37,204 | 0 |
Vested (in shares) | 0 | 0 | (83,106) | (78,553) |
Forfeited (in shares) | (3,434) | 0 | (3,434) | 0 |
Outstanding, end of period (in shares) | 33,770 | 83,947 | 33,770 | 83,947 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 39.51 | $ 22.95 | $ 22.95 | $ 27.66 |
Granted (in dollars per share) | 39.51 | 0 | 39.51 | 0 |
Vested (in dollars per share) | 0 | 0 | 22.95 | 32.69 |
Forfeited (in dollars per share) | 39.51 | 0 | 39.51 | 0 |
Outstanding, end of period (in dollars per share) | $ 39.51 | $ 22.95 | $ 39.51 | $ 22.95 |
Total weighted-average grant-date fair value | $ 0 | $ 0 | $ 1.5 | $ 0 |
LTIP awards linked to other performance conditions | ||||
Restricted stock awards and restricted stock units | ||||
Outstanding, beginning of period (in shares) | 147,888 | 113,550 | 109,816 | 222,647 |
Granted (in shares) | 930 | 0 | 148,818 | 0 |
Vested (in shares) | 0 | 0 | (109,816) | (109,097) |
Forfeited (in shares) | (13,740) | 0 | (13,740) | 0 |
Outstanding, end of period (in shares) | 135,078 | 113,550 | 135,078 | 113,550 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 33.48 | $ 25.18 | $ 25.18 | $ 26.02 |
Granted (in dollars per share) | 32.58 | 0 | 33.47 | 0 |
Vested (in dollars per share) | 0 | 0 | 25.18 | 26.89 |
Forfeited (in dollars per share) | 33.48 | 0 | 33.48 | 0 |
Outstanding, end of period (in dollars per share) | $ 33.47 | $ 25.18 | $ 33.47 | $ 25.18 |
Total weighted-average grant-date fair value | $ 0 | $ 0 | $ 5 | $ 0 |
Share-based compensation - Fair
Share-based compensation - Fair value assumptions (Details) - LTIP linked to TRS | 6 Months Ended |
Jun. 30, 2017$ / shares | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Risk-free interest rate (as a percent) | 1.46% |
Expected life (in years) | 3 years |
Expected volatility (as a percent) | 20.10% |
Range of expected volatility for Peer Group, minimum (as a percent) | 15.40% |
Range of expected volatility for Peer Group, maximum (as a percent) | 26.00% |
Grant date fair value (in dollars per share) | $ 39.51 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Contingency [Line Items] | ||||
Effective tax rate (as a percent) | 34.00% | 37.00% | 34.00% | 37.00% |
Income tax expense, expected depreciation expense increase | $ 120 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Income Tax Contingency [Line Items] | ||||
Effective tax rate (as a percent) | 36.00% | 38.00% | 36.00% | 37.00% |
Cash flows (Details)
Cash flows (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Supplemental disclosures of cash flow information | ||
Interest paid to non-affiliates | $ 46 | $ 43 |
Income taxes paid (including refundable credits) | 21 | 14 |
Income taxes refunded (including refundable credits) | 0 | 45 |
Supplemental disclosures of noncash activities | ||
Common stock dividends reinvested in HEI common stock (financing) | 0 | 11 |
Loans transferred from held for investment to held for sale (investing) | 9 | 0 |
Common stock issued (gross) for director and executive/management compensation (financing) | 11 | 6 |
Estimated fair value of noncash contributions in aid of construction (investing) | 2 | 8 |
Change in unpaid invoices and accruals for capital expenditures (investing) | (7) | (32) |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Supplemental disclosures of cash flow information | ||
Interest paid to non-affiliates | 36 | 31 |
Income taxes paid (including refundable credits) | 8 | 0 |
Income taxes refunded (including refundable credits) | 0 | 20 |
Supplemental disclosures of noncash activities | ||
Estimated fair value of noncash contributions in aid of construction (investing) | 2 | 8 |
Change in unpaid invoices and accruals for capital expenditures (investing) | $ (7) | $ (32) |
Fair value measurements - Summa
Fair value measurements - Summary of financial assets and liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financial assets | ||
Available-for-sale investment securities | $ 1,302,886 | $ 1,105,182 |
Financial liabilities | ||
Short-term borrowings—other than bank | 49,789 | 0 |
Other bank borrowings | 188,130 | 192,618 |
Carrying or notional amount | ||
Financial assets | ||
Money market funds | 13,085 | |
Available-for-sale investment securities | 1,302,886 | 1,105,182 |
Stock in Federal Home Loan Bank | 11,706 | 11,218 |
Loans receivable, net | 4,693,539 | 4,701,977 |
Mortgage-servicing rights | 9,181 | 9,373 |
Bank-owned life insurance | 146,122 | 143,197 |
Derivative assets | 58,120 | 23,578 |
Financial liabilities | ||
Deposit liabilities | 5,724,386 | 5,548,929 |
Short-term borrowings—other than bank | 49,789 | 0 |
Other bank borrowings | 188,130 | 192,618 |
Long-term debt, net | 1,618,647 | 1,619,019 |
Derivative liabilities-window forward contracts | 8,263 | 53,852 |
Carrying or notional amount | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial assets | ||
Derivative assets | 15,995 | |
Financial liabilities | ||
Short-term borrowings | 43,990 | |
Long-term debt, net | 1,318,845 | 1,319,260 |
Derivative liabilities-window forward contracts | 4,726 | 20,734 |
Estimated fair value | ||
Financial assets | ||
Money market funds | 13,085 | |
Available-for-sale investment securities | 1,302,886 | 1,105,182 |
Stock in Federal Home Loan Bank | 11,706 | 11,218 |
Loans receivable, net | 4,842,065 | 4,852,826 |
Mortgage-servicing rights | 12,270 | 13,216 |
Bank-owned life insurance | 146,122 | 143,197 |
Derivative assets | 845 | 453 |
Financial liabilities | ||
Deposit liabilities | 5,721,882 | 5,546,644 |
Short-term borrowings—other than bank | 49,789 | 0 |
Other bank borrowings | 188,513 | 193,991 |
Long-term debt, net | 1,740,479 | 1,704,717 |
Derivative liabilities-window forward contracts | 246 | 952 |
Estimated fair value | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial assets | ||
Derivative assets | 615 | |
Financial liabilities | ||
Short-term borrowings | 43,990 | |
Long-term debt, net | 1,434,528 | 1,399,490 |
Derivative liabilities-window forward contracts | 230 | 743 |
Estimated fair value | Level 1 | ||
Financial assets | ||
Money market funds | 0 | |
Available-for-sale investment securities | 0 | 0 |
Stock in Federal Home Loan Bank | 0 | 0 |
Loans receivable, net | 0 | 0 |
Mortgage-servicing rights | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Derivative assets | 47 | 0 |
Financial liabilities | ||
Deposit liabilities | 0 | 0 |
Short-term borrowings—other than bank | 0 | 0 |
Other bank borrowings | 0 | 0 |
Long-term debt, net | 0 | 0 |
Derivative liabilities-window forward contracts | 0 | 129 |
Estimated fair value | Level 1 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial assets | ||
Derivative assets | 0 | |
Financial liabilities | ||
Short-term borrowings | 0 | |
Long-term debt, net | 0 | 0 |
Derivative liabilities-window forward contracts | 0 | 0 |
Estimated fair value | Level 2 | ||
Financial assets | ||
Money market funds | 13,085 | |
Available-for-sale investment securities | 1,287,459 | 1,089,755 |
Stock in Federal Home Loan Bank | 11,706 | 11,218 |
Loans receivable, net | 5,261 | 13,333 |
Mortgage-servicing rights | 0 | 0 |
Bank-owned life insurance | 146,122 | 143,197 |
Derivative assets | 798 | 453 |
Financial liabilities | ||
Deposit liabilities | 5,721,882 | 5,546,644 |
Short-term borrowings—other than bank | 49,789 | 0 |
Other bank borrowings | 188,513 | 193,991 |
Long-term debt, net | 1,740,479 | 1,704,717 |
Derivative liabilities-window forward contracts | 246 | 823 |
Estimated fair value | Level 2 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial assets | ||
Derivative assets | 615 | |
Financial liabilities | ||
Short-term borrowings | 43,990 | |
Long-term debt, net | 1,434,528 | 1,399,490 |
Derivative liabilities-window forward contracts | 230 | 743 |
Estimated fair value | Level 3 | ||
Financial assets | ||
Money market funds | 0 | |
Available-for-sale investment securities | 15,427 | 15,427 |
Stock in Federal Home Loan Bank | 0 | 0 |
Loans receivable, net | 4,836,804 | 4,839,493 |
Mortgage-servicing rights | 12,270 | 13,216 |
Bank-owned life insurance | 0 | 0 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Deposit liabilities | 0 | 0 |
Short-term borrowings—other than bank | 0 | 0 |
Other bank borrowings | 0 | 0 |
Long-term debt, net | 0 | 0 |
Derivative liabilities-window forward contracts | 0 | 0 |
Estimated fair value | Level 3 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial assets | ||
Derivative assets | 0 | |
Financial liabilities | ||
Short-term borrowings | 0 | |
Long-term debt, net | 0 | 0 |
Derivative liabilities-window forward contracts | $ 0 | $ 0 |
Fair value measurements - Asset
Fair value measurements - Assets and liabilities measured on a recurring basis (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Fair value measurements on a recurring basis | |||
Available-for-sale investment securities | $ 1,302,886,000 | $ 1,105,182,000 | |
Estimated fair value | |||
Fair value measurements on a recurring basis | |||
Money market funds | 13,085,000 | ||
Available-for-sale investment securities | 1,302,886,000 | 1,105,182,000 | |
Derivative assets | |||
Derivative assets | 845,000 | 453,000 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 246,000 | 952,000 | |
Loans | 4,842,065,000 | 4,852,826,000 | |
Mortgage revenue bond | |||
Fair value measurements on a recurring basis | |||
Available-for-sale investment securities | 15,427,000 | 15,427,000 | |
Level 1 | Estimated fair value | |||
Fair value measurements on a recurring basis | |||
Money market funds | 0 | ||
Available-for-sale investment securities | 0 | 0 | |
Derivative assets | |||
Derivative assets | 47,000 | 0 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 0 | 129,000 | |
Loans | 0 | 0 | |
Level 2 | Estimated fair value | |||
Fair value measurements on a recurring basis | |||
Money market funds | 13,085,000 | ||
Available-for-sale investment securities | 1,287,459,000 | 1,089,755,000 | |
Derivative assets | |||
Derivative assets | 798,000 | 453,000 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 246,000 | 823,000 | |
Loans | 5,261,000 | 13,333,000 | |
Level 3 | Estimated fair value | |||
Fair value measurements on a recurring basis | |||
Money market funds | 0 | ||
Available-for-sale investment securities | 15,427,000 | 15,427,000 | |
Derivative assets | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 0 | 0 | |
Loans | 4,836,804,000 | 4,839,493,000 | |
Fair value measurements on a recurring basis | Level 1 | |||
Derivative assets | |||
Derivative assets | 47,000 | 0 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 0 | 129,000 | |
Fair value measurements on a recurring basis | Level 1 | Interest rate lock commitments | |||
Derivative assets | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 0 | 0 | |
Fair value measurements on a recurring basis | Level 1 | Forward commitments | |||
Derivative assets | |||
Derivative assets | 47,000 | 0 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 0 | 129,000 | |
Fair value measurements on a recurring basis | Level 1 | Window forward contract | |||
Derivative assets | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 0 | 0 | |
Fair value measurements on a recurring basis | Level 1 | Other | |||
Fair value measurements on a recurring basis | |||
Money market funds | 0 | 0 | |
Fair value measurements on a recurring basis | Level 1 | Bank | |||
Fair value measurements on a recurring basis | |||
Available-for-sale investment securities | 0 | 0 | |
Fair value measurements on a recurring basis | Level 1 | Mortgage-related securities - FNMA, FHLMC and GNMA | Bank | |||
Fair value measurements on a recurring basis | |||
Available-for-sale investment securities | 0 | 0 | |
Fair value measurements on a recurring basis | Level 1 | U.S. Treasury federal agency obligations | Bank | |||
Fair value measurements on a recurring basis | |||
Available-for-sale investment securities | 0 | 0 | |
Fair value measurements on a recurring basis | Level 1 | Mortgage revenue bond | Bank | |||
Fair value measurements on a recurring basis | |||
Available-for-sale investment securities | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | |||
Derivative assets | |||
Derivative assets | 798,000 | 453,000 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 246,000 | 823,000 | |
Fair value measurements on a recurring basis | Level 2 | Interest rate lock commitments | |||
Derivative assets | |||
Derivative assets | 142,000 | 445,000 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 16,000 | 24,000 | |
Fair value measurements on a recurring basis | Level 2 | Forward commitments | |||
Derivative assets | |||
Derivative assets | 41,000 | 8,000 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 0 | 56,000 | |
Fair value measurements on a recurring basis | Level 2 | Window forward contract | |||
Derivative assets | |||
Derivative assets | 615,000 | 0 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 230,000 | 743,000 | |
Fair value measurements on a recurring basis | Level 2 | Other | |||
Fair value measurements on a recurring basis | |||
Money market funds | 0 | 13,085,000 | |
Fair value measurements on a recurring basis | Level 2 | Bank | |||
Fair value measurements on a recurring basis | |||
Available-for-sale investment securities | 1,287,459,000 | 1,089,755,000 | |
Fair value measurements on a recurring basis | Level 2 | Mortgage-related securities - FNMA, FHLMC and GNMA | Bank | |||
Fair value measurements on a recurring basis | |||
Available-for-sale investment securities | 1,100,876,000 | 897,474,000 | |
Fair value measurements on a recurring basis | Level 2 | U.S. Treasury federal agency obligations | Bank | |||
Fair value measurements on a recurring basis | |||
Available-for-sale investment securities | 186,583,000 | 192,281,000 | |
Fair value measurements on a recurring basis | Level 2 | Mortgage revenue bond | Bank | |||
Fair value measurements on a recurring basis | |||
Available-for-sale investment securities | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | |||
Derivative assets | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Interest rate lock commitments | |||
Derivative assets | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Forward commitments | |||
Derivative assets | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Window forward contract | |||
Derivative assets | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | |||
Derivative liabilities-window forward contracts | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Other | |||
Fair value measurements on a recurring basis | |||
Money market funds | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Bank | |||
Fair value measurements on a recurring basis | |||
Available-for-sale investment securities | 15,427,000 | 15,427,000 | |
Fair value measurements on a recurring basis | Level 3 | Mortgage-related securities - FNMA, FHLMC and GNMA | Bank | |||
Fair value measurements on a recurring basis | |||
Available-for-sale investment securities | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | U.S. Treasury federal agency obligations | Bank | |||
Fair value measurements on a recurring basis | |||
Available-for-sale investment securities | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Mortgage revenue bond | Bank | |||
Fair value measurements on a recurring basis | |||
Available-for-sale investment securities | 15,427,000 | 15,427,000 | |
Fair value measurements on a nonrecurring basis | Estimated fair value | |||
Derivative liabilities | |||
Loans | 1,258,000 | 2,767,000 | |
Real estate acquired in settlement of loans | 1,189,000 | ||
Fair value measurements on a nonrecurring basis | American Savings Bank (ASB) | |||
Derivative liabilities | |||
Adjustments to fair value of loans held for sale | 0 | $ 0 | |
Fair value measurements on a nonrecurring basis | Level 1 | |||
Derivative liabilities | |||
Loans | 0 | 0 | |
Real estate acquired in settlement of loans | 0 | ||
Fair value measurements on a nonrecurring basis | Level 2 | |||
Derivative liabilities | |||
Loans | 0 | 0 | |
Real estate acquired in settlement of loans | 0 | ||
Fair value measurements on a nonrecurring basis | Level 3 | |||
Derivative liabilities | |||
Loans | $ 1,258,000 | 2,767,000 | |
Real estate acquired in settlement of loans | $ 1,189,000 |
Fair value measurements - Addit
Fair value measurements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Weighted average discount rate (as a percent) | 2.82% | ||||
Mortgage revenue bond | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance | $ 15,427 | $ 0 | $ 15,427 | $ 0 | $ 0 |
Principal payments received | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Unrealized gain (loss) included in other comprehensive income | 0 | 0 | 0 | 0 | |
Ending balance | $ 15,427 | $ 0 | 15,427 | $ 0 | $ 15,427 |
American Savings Bank (ASB) | |||||
Fair value measurements on a recurring basis | |||||
Loans receivable transferred out of Level 3 measurement during period | $ 6,100 |
Fair value measurements - Sum73
Fair value measurements - Summary of Level 3 financial instruments (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair value measurements | ||
Fair value | $ 1,258 | $ 2,767 |
Fair value of property or collateral | Residential loan | ||
Fair value measurements | ||
Fair value | $ 448 | $ 287 |
Appraised value, selling cost (as a percent) | 7.00% | 7.00% |
Appraised value, weighted average rate (as a percent) | 61.00% | |
Fair value of property or collateral | Residential loan | Minimum | ||
Fair value measurements | ||
Appraised value (as a percent) | 42.00% | |
Fair value of property or collateral | Residential loan | Maximum | ||
Fair value measurements | ||
Appraised value (as a percent) | 65.00% | |
Fair value of property or collateral | Home equity line of credit | ||
Fair value measurements | ||
Fair value | $ 12 | |
Appraised value, selling cost (as a percent) | 7.00% | |
Fair value of property or collateral | Real estate acquired in settlement of loans | ||
Fair value measurements | ||
Fair value | $ 1,189 | |
Appraised value, selling cost (as a percent) | 7.00% | |
Appraised value (as a percent) | 100.00% | |
Appraised value, weighted average rate (as a percent) | 100.00% | |
Sales price | Residential loan | ||
Fair value measurements | ||
Fair value | $ 2,468 | |
Appraised value, weighted average rate (as a percent) | 97.00% | |
Sales price | Residential loan | Minimum | ||
Fair value measurements | ||
Appraised value (as a percent) | 95.00% | |
Sales price | Residential loan | Maximum | ||
Fair value measurements | ||
Appraised value (as a percent) | 100.00% | |
Sales price | Commercial loans | ||
Fair value measurements | ||
Fair value | $ 810 |
Termination of proposed merge74
Termination of proposed merger and other matters (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||
Business Acquisition [Line Items] | ||||||
Merger termination, expenses recognized | $ 1 | $ 1 | ||||
NextEra Energy, Inc Merger | ||||||
Business Acquisition [Line Items] | ||||||
Merger contract termination fee | $ 90 | |||||
Maximum expenses paid to party for cancellation of merger | $ 5 | |||||
Net income recognized on merger termination | $ 64 | $ 60 | ||||
Gain (loss) recognized due to merger and spin-off related expenses, net of tax | $ (2) | $ (2) | ||||
Net income recognized, merger termination fee | 55 | |||||
Net income recognized, merger termination, reimbursements and insurance | 3 | |||||
Recognition of previously disallowed merger expenses | $ 8 | |||||
Net income recognized, merger and spin-off related expenses | $ 6 |