Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 13, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity Registrant Name | Hawaiian Electric Industries, Inc. | ||
Entity File Number | 1-8503 | ||
Entity Tax Identification Number | 99-0208097 | ||
Entity Central Index Key | 0000354707 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | HI | ||
Entity Address, Address Line One | 1001 Bishop Street, Suite 2900 | ||
Entity Address, City or Town | Honolulu | ||
Entity Address, State or Province | HI | ||
Entity Address, Postal Zip Code | 96813 | ||
City Area Code | 808 | ||
Local Phone Number | 543-5662 | ||
Title of 12(b) Security | Common Stock, Without Par Value | ||
Trading Symbol | HE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,745,752,027 | ||
Entity Common Stock, Shares Outstanding | 108,973,328 | ||
Documents Incorporated by Reference | Hawaiian Electric’s Exhibit 99.1, consisting of: Hawaiian Electric’s Directors, Executive Officers and Corporate Governance—Part III Hawaiian Electric’s Executive Compensation—Part III Hawaiian Electric’s Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters— Part III Hawaiian Electric’s Certain Relationships and Related Transactions, and Director Independence—Part III Hawaiian Electric’s Principal Accounting Fees and Services—Part III Selected sections of Proxy Statement of HEI for the 2020 Annual Meeting of Shareholders to be filed-Part III This combined Form 10-K represents separate filings by Hawaiian Electric Industries, Inc. and Hawaiian Electric Company, Inc. Information contained herein relating to any individual registrant is filed by each registrant on its own behalf. Hawaiian Electric makes no representations as to any information not relating to it or its subsidiaries. | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Entity Information [Line Items] | |||
Entity Registrant Name | Hawaiian Electric Company, Inc. | ||
Entity File Number | 1-4955 | ||
Entity Tax Identification Number | 99-0040500 | ||
Entity Central Index Key | 0000046207 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Address, Address Line One | 1001 Bishop Street, Suite 2500 | ||
Entity Address, City or Town | Honolulu | ||
Entity Address, State or Province | HI | ||
Entity Address, Postal Zip Code | 96813 | ||
City Area Code | 808 | ||
Local Phone Number | 543-7771 | ||
Title of 12(g) Security | Cumulative Preferred Stock | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 17,048,783 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Revenues | $ 2,874,601 | $ 2,860,849 | $ 2,555,625 |
Expenses | |||
Total expenses | 2,525,927 | 2,527,493 | 2,209,392 |
Operating income (loss) | |||
Operating income | 348,674 | 333,356 | 346,233 |
Retirement defined benefits expense—other than service costs | (2,806) | (5,962) | (7,942) |
Interest expense, net – other than on deposit liabilities and other bank borrowings | (90,899) | (88,677) | (78,972) |
Allowance for borrowed funds used during construction | 4,453 | 4,867 | 4,778 |
Allowance for equity funds used during construction | 11,987 | 10,877 | 12,483 |
Income before income taxes | 271,409 | 254,461 | 276,580 |
Income taxes | 51,637 | 50,797 | 109,393 |
Net income (loss) | 219,772 | 203,664 | 167,187 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 |
Net income for common stock | $ 217,882 | $ 201,774 | $ 165,297 |
Basic earnings per common share (in dollars per share) | $ 2 | $ 1.85 | $ 1.52 |
Diluted earnings per common share (in dollars per share) | $ 1.99 | $ 1.85 | $ 1.52 |
Weighted-average number of common shares outstanding (in shares) | 108,949 | 108,855 | 108,749 |
Net effect of potentially dilutive shares (in shares) | 458 | 291 | 184 |
Weighted-average shares assuming dilution (in shares) | 109,407 | 109,146 | 108,933 |
Electric utility | |||
Revenues | |||
Revenues | $ 2,545,942 | $ 2,546,525 | $ 2,257,566 |
Expenses | |||
Total expenses | 2,291,564 | 2,304,864 | 1,994,042 |
Operating income (loss) | |||
Operating income | 254,378 | 241,661 | 263,524 |
Income before income taxes | 197,140 | 180,426 | 205,145 |
Income taxes | 38,305 | 34,778 | 83,199 |
Net income (loss) | 158,835 | 145,648 | 121,946 |
Preferred stock dividends of subsidiaries | 1,995 | 1,995 | 1,995 |
Net income for common stock | 156,840 | 143,653 | 119,951 |
Bank | |||
Revenues | |||
Revenues | 328,570 | 314,275 | 297,640 |
Expenses | |||
Total expenses | 217,008 | 206,040 | 198,104 |
Operating income (loss) | |||
Operating income | 111,562 | 108,235 | 99,536 |
Income before income taxes | 112,034 | 106,578 | 98,716 |
Income taxes | 23,061 | 24,069 | 31,719 |
Net income (loss) | 88,973 | 82,509 | 66,997 |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 |
Net income for common stock | 88,973 | 82,509 | 66,997 |
Other | |||
Revenues | |||
Revenues | 89 | 49 | 419 |
Expenses | |||
Total expenses | 17,355 | 16,589 | 17,246 |
Operating income (loss) | |||
Operating income | (17,266) | (16,540) | (16,827) |
Income before income taxes | (37,765) | (32,543) | (27,281) |
Income taxes | (9,729) | (8,050) | (5,525) |
Net income (loss) | (28,036) | (24,493) | (21,756) |
Preferred stock dividends of subsidiaries | (105) | (105) | (105) |
Net income for common stock | $ (27,931) | $ (24,388) | $ (21,651) |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Bank | |
Gain on sale of properties | $ 10.8 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income for common stock | $ 217,882 | $ 201,774 | $ 165,297 |
Net unrealized gains (losses) on available-for sale investment securities: | |||
Net unrealized gains (losses) on available-for sale investment securities arising during the period, net of (taxes) benefits of $(10,024), $3,468 and $2,886 for 2019, 2018 and 2017, respectively | 27,382 | (9,472) | (4,370) |
Reclassification adjustment for net realized gains included in net income, net of taxes of $175, nil and nil for 2019, 2018 and 2017, respectively | (478) | 0 | 0 |
Derivatives qualified as cash flow hedges: | |||
Unrealized interest rate hedging losses, net of tax benefit of $409, $151 and nil for 2019, 2018 and 2017, respectively | (1,177) | (436) | 0 |
Reclassification adjustment to net income, net of tax benefits of nil, nil and $289 for 2019, 2018 and 2017, respectively | 0 | 0 | 454 |
Retirement benefit plans: | |||
Net gains (losses) arising during the period, net of (taxes) benefits of $(3,892), $9,810 and $(41,129) for 2019, 2018 and 2017, respectively | 10,914 | (28,101) | 65,531 |
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $3,512, $7,317 and $10,041 for 2019, 2018 and 2017, respectively | 10,107 | 21,015 | 15,737 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(5,610), $2,887 and $(49,523) for 2019, 2018 and 2017, respectively | (16,177) | 8,325 | (78,724) |
Other comprehensive income (loss), net of taxes | 30,571 | (8,669) | (1,372) |
Comprehensive income | $ 248,453 | $ 193,105 | $ 163,925 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized gains (losses) on securities arising during the period, tax (benefits) | $ 10,024 | $ (3,468) | $ (2,886) |
Reclassification adjustment for net realized gains included in net income, tax expenses | 175 | 0 | 0 |
Foreign currency hedge net unrealized loss, taxes (benefits) | (409) | (151) | 0 |
Reclassification adjustment to net income, taxes (benefits) | 0 | 0 | (289) |
Net gains (losses) arising during the period, taxes (benefits) | 3,892 | (9,810) | 41,129 |
Amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | (3,512) | (7,317) | (10,041) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, (taxes) benefits | $ (5,610) | $ 2,887 | $ (49,523) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 196,813,000 | $ 169,208,000 |
Restricted cash | 30,872,000 | 0 |
Accounts receivable and unbilled revenues, net | 300,794,000 | 325,672,000 |
Available-for-sale investment securities, at fair value | 1,232,826,000 | 1,388,533,000 |
Held-to-maturity investment securities, at amortized cost | 139,451,000 | 141,875,000 |
Stock in Federal Home Loan Bank, at cost | 8,434,000 | 9,958,000 |
Loans held for investment, net | 5,067,821,000 | 4,790,902,000 |
Loans held for sale, at lower of cost or fair value | 12,286,000 | 1,805,000 |
Property, plant and equipment, net | ||
Land | 100,161,000 | 102,925,000 |
Plant and equipment | 7,545,083,000 | 7,118,709,000 |
Construction in progress | 229,953,000 | 267,714,000 |
Property, plant and equipment, gross | 7,875,197,000 | 7,489,348,000 |
Less – accumulated depreciation | (2,765,569,000) | (2,659,230,000) |
Total property, plant and equipment, net | 5,109,628,000 | 4,830,118,000 |
Operating lease right-of-use-assets | 199,171,000 | |
Regulatory assets | 715,080,000 | 833,426,000 |
Other | 649,885,000 | 530,364,000 |
Goodwill | 82,190,000 | 82,190,000 |
Total assets | 13,745,251,000 | 13,104,051,000 |
Liabilities | ||
Accounts payable | 220,633,000 | 214,773,000 |
Interest and dividends payable | 24,941,000 | 28,254,000 |
Deposit liabilities | 6,271,902,000 | 6,158,852,000 |
Short-term borrowings—other than bank | 185,710,000 | 73,992,000 |
Other bank borrowings | 115,110,000 | 110,040,000 |
Long-term debt, net—other than bank | 1,964,365,000 | 1,879,641,000 |
Deferred income taxes | 379,324,000 | 372,518,000 |
Operating lease, liability | 199,571,000 | |
Regulatory liabilities | 972,310,000 | 950,236,000 |
Defined benefit pension and other postretirement benefit plans liability | 513,287,000 | 538,384,000 |
Other | 583,545,000 | 580,788,000 |
Total liabilities | 11,430,698,000 | 10,907,478,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293,000 | 34,293,000 |
Commitments and contingencies | ||
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: 108,973,328 shares and 108,879,245 shares at December 31, 2019 and 2018, respectively | 1,678,257,000 | 1,669,267,000 |
Retained earnings | 622,042,000 | 543,623,000 |
Accumulated other comprehensive loss, net of tax benefits | ||
Net unrealized gains (losses) on securities | 2,481,000 | (24,423,000) |
Unrealized losses on derivatives | (1,613,000) | (436,000) |
Retirement benefit plans | (20,907,000) | (25,751,000) |
Accumulated other comprehensive loss, net of tax benefits | (20,039,000) | (50,610,000) |
Total shareholders’ equity | 2,280,260,000 | 2,162,280,000 |
Total capitalization and liabilities | $ 13,745,251,000 | $ 13,104,051,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, issued shares | 108,973,328 | 108,879,245 |
Common stock, outstanding shares | 108,973,328 | 108,879,245 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock | Retained earnings | Accumulated other comprehensive income (loss) |
Beginning Balance at Dec. 31, 2016 | $ 2,066,753 | $ 1,660,910 | $ 438,972 | $ (33,129) |
Balance (in shares) at Dec. 31, 2016 | 108,583,000 | |||
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | 165,297 | 165,297 | ||
Other comprehensive income (loss), net of tax benefits | (1,372) | (1,372) | ||
Reclass of AOCI for tax rate reduction impact | 7,440 | (7,440) | ||
Issuance of common stock: Share-based plans | 4,664 | $ 4,664 | ||
Issuance of common stock: Share-based plans (in shares) | 205,000 | |||
Issuance of common stock: Share-based expenses and other, net | (3,083) | $ (3,083) | ||
Common stock dividends | (134,873) | (134,873) | ||
Ending Balance at Dec. 31, 2017 | 2,097,386 | $ 1,662,491 | 476,836 | (41,941) |
Balance (in shares) at Dec. 31, 2017 | 108,788,000 | |||
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | 201,774 | 201,774 | ||
Other comprehensive income (loss), net of tax benefits | (8,669) | (8,669) | ||
Issuance of common stock: Share-based plans | 2,650 | $ 2,650 | ||
Issuance of common stock: Share-based plans (in shares) | 91,000 | |||
Issuance of common stock: Share-based expenses and other, net | 4,126 | $ 4,126 | ||
Common stock dividends | (134,987) | (134,987) | ||
Ending Balance at Dec. 31, 2018 | $ 2,162,280 | $ 1,669,267 | 543,623 | (50,610) |
Balance (in shares) at Dec. 31, 2018 | 108,879,245 | 108,879,000 | ||
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | $ 217,882 | 217,882 | ||
Other comprehensive income (loss), net of tax benefits | 30,571 | 30,571 | ||
Issuance of common stock: Share-based plans | 3,092 | $ 3,092 | ||
Issuance of common stock: Share-based plans (in shares) | 94,000 | |||
Issuance of common stock: Share-based expenses and other, net | 5,898 | $ 5,898 | ||
Common stock dividends | (139,463) | (139,463) | ||
Ending Balance at Dec. 31, 2019 | $ 2,280,260 | $ 1,678,257 | $ 622,042 | $ (20,039) |
Balance (in shares) at Dec. 31, 2019 | 108,973,328 | 108,973,000 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Common stock dividends (in dollars per share) | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.31 | $ 0.31 | $ 0.31 | $ 0.31 | $ 1.28 | $ 1.24 | $ 1.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income | $ 219,772,000 | $ 203,664,000 | $ 167,187,000 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 229,858,000 | 214,036,000 | 200,658,000 |
Other amortization | 48,255,000 | 41,593,000 | 21,340,000 |
Provision for loan losses | 23,480,000 | 14,745,000 | 10,901,000 |
Loans originated, held for sale | (285,042,000) | (109,537,000) | (115,104,000) |
Proceeds from sale of loans, held for sale | 277,119,000 | 112,182,000 | 127,951,000 |
Gain on sale of real estate, held for sale | (10,762,000) | 0 | 0 |
Deferred income taxes | (15,085,000) | (9,368,000) | 37,835,000 |
Share-based compensation expense | 9,986,000 | 7,792,000 | 5,404,000 |
Allowance for equity funds used during construction | (11,987,000) | (10,877,000) | (12,483,000) |
Other | 10,822,000 | (4,219,000) | (3,324,000) |
Changes in assets and liabilities | |||
Decrease (increase) in accounts receivable and unbilled revenues, net | 26,083,000 | (64,321,000) | (12,875,000) |
Decrease (increase) in fuel oil stock | (11,493,000) | 7,054,000 | (20,794,000) |
Decrease (increase) in regulatory assets | 71,262,000 | 9,252,000 | (17,256,000) |
Increase (decrease) in accounts, interest and dividends payable | (3,054,000) | 21,528,000 | 34,985,000 |
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | (27,538,000) | 29,429,000 | 20,685,000 |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (4,482,000) | 20,871,000 | 882,000 |
Change in other assets and liabilities | (34,724,000) | 15,488,000 | (25,551,000) |
Net cash provided by operating activities | 512,470,000 | 499,312,000 | 420,441,000 |
Cash flows from investing activities | |||
Available-for-sale investment securities purchased | (108,088,000) | (224,335,000) | (528,379,000) |
Principal repayments on available-for-sale investment securities | 272,949,000 | 218,930,000 | 220,231,000 |
Proceeds from sale of available-for-sale investment securities | 19,810,000 | 0 | 0 |
Purchases of held-to-maturity investment securities | (13,057,000) | (103,184,000) | (44,515,000) |
Proceeds from repayments or maturities of held-to-maturity investment securities | 15,505,000 | 5,720,000 | 0 |
Purchase of stock from Federal Home Loan Bank | (95,636,000) | (28,292,000) | (2,868,000) |
Redemption of stock from Federal Home Loan Bank | 97,160,000 | 28,040,000 | 4,380,000 |
Net decrease (increase) in loans held for investment | (300,210,000) | (189,352,000) | 15,887,000 |
Proceeds from sale of commercial loans | 0 | 7,149,000 | 36,760,000 |
Proceeds from sale of real estate held for sale | 21,060,000 | 0 | 0 |
Capital expenditures | (457,520,000) | (506,770,000) | (430,454,000) |
Contributions to low income housing investments | (6,974,000) | (14,499,000) | (17,505,000) |
Acquisition of business | 0 | 0 | (76,323,000) |
Other, net | 13,292,000 | 14,534,000 | 7,487,000 |
Net cash used in investing activities | (541,709,000) | (792,059,000) | (815,299,000) |
Cash flows from financing activities | |||
Net increase in deposit liabilities | 113,050,000 | 165,880,000 | 341,668,000 |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | 86,718,000 | (18,999,000) | 67,992,000 |
Proceeds from issuance of short-term debt | 75,000,000 | 25,000,000 | 125,000,000 |
Repayment of short-term debt | (50,000,000) | (50,000,000) | (75,000,000) |
Net increase in other bank borrowings with original maturities of three months or less | 5,070,000 | 71,556,000 | 61,776,000 |
Repayment of other bank borrowings | 0 | (50,000,000) | (63,534,000) |
Proceeds from issuance of long-term debt | 289,349,000 | 250,000,000 | 532,325,000 |
Repayment of long-term debt and funds transferred for repayment of long-term debt | (287,285,000) | (53,887,000) | (465,000,000) |
Withheld shares for employee taxes on vested share-based compensation | (997,000) | (996,000) | (3,828,000) |
Common stock dividends | (139,463,000) | (134,987,000) | (134,873,000) |
Preferred stock dividends of subsidiaries | (1,890,000) | (1,890,000) | (1,890,000) |
Other | (1,836,000) | (1,603,000) | (6,349,000) |
Net cash used in financing activities | 87,716,000 | 200,074,000 | 378,287,000 |
Net decrease in cash and equivalents | 58,477,000 | (92,673,000) | (16,571,000) |
Cash, cash equivalents and restricted cash, January 1 | 169,208,000 | 261,881,000 | 278,452,000 |
Cash, cash equivalents and restricted cash, December 31 | 227,685,000 | 169,208,000 | 261,881,000 |
Less: Restricted cash | (30,872,000) | 0 | 0 |
Cash and cash equivalents, December 31 | $ 196,813,000 | $ 169,208,000 | $ 261,881,000 |
Consolidated Statements of In_3
Consolidated Statements of Income - HECO Statement - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | $ 725,966 | $ 771,535 | $ 715,485 | $ 661,615 | $ 761,650 | $ 768,048 | $ 685,277 | $ 645,874 | $ 2,874,601 | $ 2,860,849 | $ 2,555,625 |
Expenses | |||||||||||
Total expenses | 2,525,927 | 2,527,493 | 2,209,392 | ||||||||
Operating income | 100,795 | 97,308 | 72,634 | 77,937 | 84,604 | 98,064 | 78,799 | 71,889 | 348,674 | 333,356 | 346,233 |
Allowance for equity funds used during construction | 11,987 | 10,877 | 12,483 | ||||||||
Retirement defined benefits expense—other than service costs | (2,806) | (5,962) | (7,942) | ||||||||
Allowance for borrowed funds used during construction | 4,453 | 4,867 | 4,778 | ||||||||
Income before income taxes | 271,409 | 254,461 | 276,580 | ||||||||
Income taxes | 51,637 | 50,797 | 109,393 | ||||||||
Net income (loss) | 66,736 | 63,890 | 42,985 | 46,161 | 50,046 | 66,371 | 46,527 | 40,720 | 219,772 | 203,664 | 167,187 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | ||||||||
Net income for common stock | 66,263 | 63,419 | 42,512 | 45,688 | 49,573 | 65,900 | 46,054 | 40,247 | 217,882 | 201,774 | 165,297 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Revenues | 645,333 | 688,330 | 633,784 | 578,495 | 680,563 | 687,409 | 608,126 | 570,427 | 2,545,942 | 2,546,525 | 2,257,566 |
Expenses | |||||||||||
Fuel oil | 720,709 | 760,528 | 587,768 | ||||||||
Purchased power | 633,256 | 639,307 | 586,634 | ||||||||
Other operation and maintenance | 481,737 | 461,491 | 411,907 | ||||||||
Depreciation | 215,731 | 203,626 | 192,784 | ||||||||
Taxes, other than income taxes | 240,131 | 239,912 | 214,949 | ||||||||
Total expenses | 2,291,564 | 2,304,864 | 1,994,042 | ||||||||
Operating income | 70,331 | 71,793 | 55,694 | 56,560 | 61,112 | 74,036 | 55,144 | 51,369 | 254,378 | 241,661 | 263,524 |
Allowance for equity funds used during construction | 11,987 | 10,877 | 12,483 | ||||||||
Retirement defined benefits expense—other than service costs | (2,836) | (3,631) | (6,003) | ||||||||
Interest expense and other charges, net | (70,842) | (73,348) | (69,637) | ||||||||
Allowance for borrowed funds used during construction | 4,453 | 4,867 | 4,778 | ||||||||
Income before income taxes | 197,140 | 180,426 | 205,145 | ||||||||
Income taxes | 38,305 | 34,778 | 83,199 | ||||||||
Net income (loss) | 45,860 | 47,277 | 33,073 | 32,625 | 35,796 | 50,210 | 31,668 | 27,974 | 158,835 | 145,648 | 121,946 |
Preferred stock dividends of subsidiaries | 915 | 915 | 915 | ||||||||
Net income attributable to Hawaiian Electric | 157,920 | 144,733 | 121,031 | ||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | ||||||||
Net income for common stock | $ 45,361 | $ 46,779 | $ 32,574 | $ 32,126 | $ 35,297 | $ 49,712 | $ 31,169 | $ 27,475 | $ 156,840 | $ 143,653 | $ 119,951 |
Consolidated Statements of Co_3
Consolidated Statements of Comprehensive Income - HECO - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income for common stock | $ 66,263 | $ 63,419 | $ 42,512 | $ 45,688 | $ 49,573 | $ 65,900 | $ 46,054 | $ 40,247 | $ 217,882 | $ 201,774 | $ 165,297 |
Other comprehensive income (loss), net of taxes: | |||||||||||
Reclassification adjustment to net income, net of tax benefits of nil, nil and $289 for 2019, 2018 and 2017, respectively | 0 | 0 | 454 | ||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $(1,821), $9,024 and $(39,587) for 2019, 2018 and 2017, respectively | 10,914 | (28,101) | 65,531 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $3,312, $6,594 and $9,221 for 2019, 2018 and 2017, respectively | 10,107 | 21,015 | 15,737 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(5,610), $2,887 and $(49,523) for 2019, 2018 and 2017, respectively | (16,177) | 8,325 | (78,724) | ||||||||
Other comprehensive income (loss), net of taxes | 30,571 | (8,669) | (1,372) | ||||||||
Comprehensive income | 248,453 | 193,105 | 163,925 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Net income for common stock | $ 45,361 | $ 46,779 | $ 32,574 | $ 32,126 | $ 35,297 | $ 49,712 | $ 31,169 | $ 27,475 | 156,840 | 143,653 | 119,951 |
Other comprehensive income (loss), net of taxes: | |||||||||||
Reclassification adjustment to net income, net of tax benefits of nil, nil and $289 for 2019, 2018 and 2017, respectively | 0 | 0 | 454 | ||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $(1,821), $9,024 and $(39,587) for 2019, 2018 and 2017, respectively | 5,249 | (26,019) | 63,105 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $3,312, $6,594 and $9,221 for 2019, 2018 and 2017, respectively | 9,550 | 19,012 | 14,477 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(5,610), $2,887 and $(49,523) for 2019, 2018 and 2017, respectively | (16,177) | 8,325 | (78,724) | ||||||||
Other comprehensive income (loss), net of taxes | (1,378) | 1,318 | (688) | ||||||||
Comprehensive income | $ 155,462 | $ 144,971 | $ 119,263 |
Consolidated Statements of Co_4
Consolidated Statements of Comprehensive Income (Parenthetical) - HECO - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign currency hedge net unrealized loss, taxes (benefits) | $ (409) | $ (151) | $ 0 |
Reclassification adjustment to net income, taxes (benefits) | 0 | 0 | (289) |
Net gains (losses) arising during the period, taxes (benefits) | 3,892 | (9,810) | 41,129 |
Amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | (3,512) | (7,317) | (10,041) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, (taxes) benefits | (5,610) | 2,887 | (49,523) |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Foreign currency hedge net unrealized loss, taxes (benefits) | 0 | 0 | 0 |
Reclassification adjustment to net income, taxes (benefits) | 0 | 0 | (289) |
Net gains (losses) arising during the period, taxes (benefits) | 1,821 | (9,024) | 39,587 |
Amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | (3,312) | (6,594) | (9,221) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, (taxes) benefits | $ (5,610) | $ 2,887 | $ (49,523) |
Consolidated Balance Sheets - H
Consolidated Balance Sheets - HECO - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, plant and equipment, net | ||
Total property, plant and equipment, net | $ 5,109,628 | $ 4,830,118 |
Current assets | ||
Cash and cash equivalents | 196,813 | 169,208 |
Restricted cash | 30,872 | 0 |
Operating lease right-of-use-assets | 199,171 | |
Total assets | 13,745,251 | 13,104,051 |
Capitalization and liabilities | ||
Common stock equity | 2,280,260 | 2,162,280 |
Commitments and contingencies | ||
Current liabilities | ||
Current portion of operating lease liabilities | 63,707 | |
Interest and dividends payable | 24,941 | 28,254 |
Deferred credits and other liabilities | ||
Deferred income taxes | 379,324 | 372,518 |
Total capitalization and liabilities | 13,745,251 | 13,104,051 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Property, plant and equipment, net | ||
Land | 51,816 | 49,667 |
Plant and equipment | 7,240,288 | 6,809,671 |
Less accumulated depreciation | (2,690,157) | (2,577,342) |
Construction in progress | 193,074 | 233,145 |
Utility property, plant and equipment, net | 4,795,021 | 4,515,141 |
Nonutility property, plant and equipment, less accumulated depreciation of $111 and $1,255 as of December 31, 2019 and 2018, respectively | 6,956 | 6,961 |
Total property, plant and equipment, net | 4,801,977 | 4,522,102 |
Current assets | ||
Cash and cash equivalents | 11,022 | 35,877 |
Restricted cash | 30,872 | |
Customer accounts receivable, net | 152,790 | 177,896 |
Accrued unbilled revenues, net | 117,227 | 121,738 |
Other accounts receivable, net | 11,568 | 6,215 |
Fuel oil stock, at average cost | 91,937 | 79,935 |
Materials and supplies, at average cost | 60,702 | 55,204 |
Prepayments and other | 116,980 | 32,118 |
Regulatory assets | 30,710 | 71,016 |
Total current assets | 623,808 | 579,999 |
Operating lease right-of-use-assets | 176,809 | |
Regulatory assets | 684,370 | 762,410 |
Other | 101,718 | 102,992 |
Total other long-term assets | 962,897 | 865,402 |
Total assets | 6,388,682 | 5,967,503 |
Capitalization and liabilities | ||
Common stock equity | 2,047,352 | 1,957,641 |
Cumulative preferred stock – not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies | ||
Long-term debt, net | 1,401,714 | 1,418,802 |
Total capitalization | 3,483,359 | 3,410,736 |
Current liabilities | ||
Current portion of operating lease liabilities | 63,707 | |
Current portion of long-term debt, net | 95,953 | 0 |
Short-term borrowings from non-affiliate | 88,987 | 25,000 |
Accounts payable | 187,770 | 171,791 |
Interest and dividends payable | 20,728 | 23,215 |
Taxes accrued, including revenue taxes | 207,992 | 233,333 |
Regulatory liabilities | 30,724 | 17,977 |
Other | 67,305 | 60,003 |
Total current liabilities | 763,166 | 531,319 |
Deferred credits and other liabilities | ||
Operating lease liabilities | 113,400 | |
Deferred income taxes | 377,150 | 383,197 |
Regulatory liabilities | 941,586 | 932,259 |
Unamortized tax credits | 117,868 | 91,522 |
Defined benefit pension and other postretirement benefit plans liability | 478,763 | 503,659 |
Other | 113,390 | 114,811 |
Total deferred credits and other liabilities | 2,142,157 | 2,025,448 |
Total capitalization and liabilities | $ 6,388,682 | $ 5,967,503 |
Consolidated Balance Sheets -_2
Consolidated Balance Sheets - HECO (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Accumulated depreciation on other property, plant and equipment | $ 111 | $ 1,255 |
Consolidated Statements of Capi
Consolidated Statements of Capitalization - HECO - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Common stock equity | ||
Retained earnings | $ 622,042 | $ 543,623 |
Accumulated other comprehensive income (loss), net of taxes-retirement benefit plans | (20,907) | (25,751) |
Total shareholders’ equity | 2,280,260 | 2,162,280 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Common stock equity | ||
Common stock of $6 2/3 par value, Authorized: 50,000,000 shares. Outstanding: 16,142,216 shares and 16,019,785 shares at December 31, 2017 and 2016, respectively | 113,678 | 111,696 |
Premium on capital stock | 714,824 | 681,305 |
Retained earnings | 1,220,129 | 1,164,541 |
Accumulated other comprehensive income (loss), net of taxes-retirement benefit plans | (1,279) | 99 |
Total shareholders’ equity | $ 2,047,352 | 1,957,641 |
Shares outstanding December 31, 2019 and 2018 | 1,234,657 | |
Cumulative preferred stock – not subject to mandatory redemption | $ 34,293 | 34,293 |
Long-term debt | 1,505,000 | 1,426,546 |
Less unamortized debt issuance costs | 7,333 | 7,744 |
Less current portion long-term debt, net of unamortized debt issuance costs | 95,953 | 0 |
Long-term debt, net | 1,401,714 | 1,418,802 |
Total capitalization | 3,483,359 | 3,410,736 |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | ||
Common stock equity | ||
Long-term debt | 542,000 | 462,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 3.50%, Series 2019, due 2049 | ||
Common stock equity | ||
Long-term debt | 0 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 3.20%, Refunding series 2019, due 2039 | ||
Common stock equity | ||
Long-term debt | 0 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 6.50%, Series 2009, due 2039 - redeemed in 2019 | ||
Common stock equity | ||
Long-term debt | 0 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Unsecured Debt | ||
Common stock equity | ||
Long-term debt | 963,000 | 964,546 |
Hawaiian Electric Company, Inc. and Subsidiaries | Unsecured Debt | 3.50%, Series 2019, due 2049 | ||
Common stock equity | ||
Long-term debt | 80,000 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Unsecured Debt | 3.20%, Refunding series 2019, due 2039 | ||
Common stock equity | ||
Long-term debt | 150,000 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Unsecured Debt | 3.10%, Refunding series 2017A, due 2026 | ||
Common stock equity | ||
Long-term debt | 125,000 | 125,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Unsecured Debt | 4.00%, Refunding series 2017B, due 2037 | ||
Common stock equity | ||
Long-term debt | 140,000 | 140,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Unsecured Debt | 3.25%, Refunding series 2015, due 2025 | ||
Common stock equity | ||
Long-term debt | 47,000 | 47,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Unsecured Debt | 6.50%, Series 2009, due 2039 - redeemed in 2019 | ||
Common stock equity | ||
Long-term debt | 150,000 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | ||
Common stock equity | ||
Long-term debt | 963,000 | 913,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.21%, Series 2019A, due 2033 | ||
Common stock equity | ||
Long-term debt | 50,000 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.38%, Series 2018A, due 2028 | ||
Common stock equity | ||
Long-term debt | 67,500 | 67,500 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.53%, Series 2018B, due 2033 | ||
Common stock equity | ||
Long-term debt | 17,500 | 17,500 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.72%, Series 2018C, due 2048 | ||
Common stock equity | ||
Long-term debt | 15,000 | 15,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.31%, Series 2017A, due 2047 | ||
Common stock equity | ||
Long-term debt | 50,000 | 50,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.54%, Series 2016A, due 2046 | ||
Common stock equity | ||
Long-term debt | 40,000 | 40,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 5.23%, Series 2015A, due 2045 | ||
Common stock equity | ||
Long-term debt | 80,000 | 80,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 3.83%, Series 2013A, due 2020 | ||
Common stock equity | ||
Long-term debt | 14,000 | 14,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.45%, Series 2013A and 2013B, due 2022 | ||
Common stock equity | ||
Long-term debt | 52,000 | 52,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.84%, Series 2013A, 2013B and 2013C, due 2027 | ||
Common stock equity | ||
Long-term debt | 100,000 | 100,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 5.65%, Series 2013B and 2013C, due 2043 | ||
Common stock equity | ||
Long-term debt | 70,000 | 70,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.03%, Series 2012B, due 2020 | ||
Common stock equity | ||
Long-term debt | 82,000 | 82,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.55%, Series 2012B and 2012C, due 2023 | ||
Common stock equity | ||
Long-term debt | 100,000 | 100,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.72%, Series 2012D, due 2029 | ||
Common stock equity | ||
Long-term debt | 35,000 | 35,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 5.39%, Series 2012E, due 2042 | ||
Common stock equity | ||
Long-term debt | 150,000 | 150,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.53%, Series 2012F, due 2032 | ||
Common stock equity | ||
Long-term debt | 40,000 | 40,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Junior subordinated debt | 6.50 %, series 2004, Junior subordinated deferrable interest debentures, due 2034 - redeemed in 2019 | ||
Common stock equity | ||
Long-term debt | $ 0 | $ 51,546 |
Hawaiian Electric | Series C, 4.25% Preferred Stock | ||
Common stock equity | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding December 31, 2019 and 2018 | 150,000 | 150,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 3,000 | $ 3,000 |
Hawaiian Electric | Series D, 5.00% Preferred Stock | ||
Common stock equity | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding December 31, 2019 and 2018 | 50,000 | 50,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 1,000 | $ 1,000 |
Hawaiian Electric | Series E, 5.00% Preferred Stock | ||
Common stock equity | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding December 31, 2019 and 2018 | 150,000 | 150,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 3,000 | $ 3,000 |
Hawaiian Electric | Series H, 5.25% Preferred Stock | ||
Common stock equity | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding December 31, 2019 and 2018 | 250,000 | 250,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 5,000 | $ 5,000 |
Hawaiian Electric | Series I, 5.00% Preferred Stock | ||
Common stock equity | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding December 31, 2019 and 2018 | 89,657 | 89,657 |
Cumulative preferred stock – not subject to mandatory redemption | $ 1,793 | $ 1,793 |
Hawaiian Electric | Series J, 4.75% Preferred Stock | ||
Common stock equity | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding December 31, 2019 and 2018 | 250,000 | 250,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 5,000 | $ 5,000 |
Hawaiian Electric | Series K, 4.65% Preferred Stock | ||
Common stock equity | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding December 31, 2019 and 2018 | 175,000 | 175,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 3,500 | $ 3,500 |
Hawaii Electric Light | Series G, 7.625% Preferred Stock | ||
Common stock equity | ||
Preferred stock, par value (in dollars per share) | $ 100 | |
Shares outstanding December 31, 2019 and 2018 | 70,000 | 70,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 7,000 | $ 7,000 |
Maui Electric | Series H, 7.625% Preferred Stock | ||
Common stock equity | ||
Preferred stock, par value (in dollars per share) | $ 100 | |
Shares outstanding December 31, 2019 and 2018 | 50,000 | 50,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 5,000 | $ 5,000 |
Consolidated Statements of Ca_2
Consolidated Statements of Capitalization - HECO (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, outstanding shares | 108,973,328 | 108,879,245 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Common stock, par value (in dollars per share) | $ 6.667 | $ 6.667 |
Common stock, authorized shares | 50,000,000 | 50,000,000 |
Common stock, outstanding shares | 17,048,783 | 16,751,488 |
Shares outstanding | 1,234,657 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 3.50%, Series 2019, due 2049 | ||
Debt instrument, stated interest rate | 3.50% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 3.20%, Refunding series 2019, due 2039 | ||
Debt instrument, stated interest rate | 3.20% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 3.10% Refunding Series 2017A Due 2026 | ||
Debt instrument, stated interest rate | 3.10% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 4.00% Refunding Series 2017B, Due 2037 | ||
Debt instrument, stated interest rate | 4.00% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 3.25% Refunding Series 2015 SPRBs due 2025 | ||
Debt instrument, stated interest rate | 3.25% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 6.50%, series 2009, due 2039 | ||
Debt instrument, stated interest rate | 6.50% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.38%, Series 2018A, due 2028 | ||
Debt instrument, stated interest rate | 4.38% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.53%, Series 2018B, due 2033 | ||
Debt instrument, stated interest rate | 4.53% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.72%, Series 2018C, due 2048 | ||
Debt instrument, stated interest rate | 4.72% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.31%, Series 2017A, due 2047 | ||
Debt instrument, stated interest rate | 4.31% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.21%, Series 2019A, due 2033 | ||
Debt instrument, stated interest rate | 4.21% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.54%, Series 2016A, due 2046 | ||
Debt instrument, stated interest rate | 4.54% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 5.23%, Series 2015A, due 2045 | ||
Debt instrument, stated interest rate | 5.23% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 3.83%, Series 2013A, due 2020 | ||
Debt instrument, stated interest rate | 3.83% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.45%, Series 2013A and 2013B, due 2022 | ||
Debt instrument, stated interest rate | 4.45% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.84%, Series 2013A, 2013B and 2013C, due 2027 | ||
Debt instrument, stated interest rate | 4.84% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 5.65%, Series 2013B and 2013C, due 2043 | ||
Debt instrument, stated interest rate | 5.65% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.03%, Series 2012B, due 2020 | ||
Debt instrument, stated interest rate | 4.03% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.55%, Series 2012B and 2012C, due 2023 | ||
Debt instrument, stated interest rate | 4.55% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.72%, Series 2012D, due 2029 | ||
Debt instrument, stated interest rate | 4.72% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 5.39%, Series 2012E, due 2042 | ||
Debt instrument, stated interest rate | 5.39% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.53%, Series 2012F, due 2032 | ||
Debt instrument, stated interest rate | 4.53% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Junior subordinated debt | 6.50 %, series 2004, Junior subordinated deferrable interest debentures, due 2034 - redeemed in 2019 | ||
Debt instrument, stated interest rate | 6.50% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Preferred Stock $20 Par Value | ||
Preferred stock, par value (in dollars per share) | $ 20 | $ 20 |
Preferred stock, Authorized shares | 5,000,000 | 5,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Preferred Stock $100 Par Value | ||
Preferred stock, par value (in dollars per share) | $ 100 | $ 100 |
Preferred stock, Authorized shares | 7,000,000 | 7,000,000 |
Hawaiian Electric | Series C, 4.25% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding | 150,000 | 150,000 |
Preferred stock, stated dividend rate | 4.25% | 4.25% |
Hawaiian Electric | Series D, 5.00% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding | 50,000 | 50,000 |
Preferred stock, stated dividend rate | 5.00% | 5.00% |
Hawaiian Electric | Series E, 5.00% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding | 150,000 | 150,000 |
Preferred stock, stated dividend rate | 5.00% | 5.00% |
Hawaiian Electric | Series H, 5.25% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding | 250,000 | 250,000 |
Preferred stock, stated dividend rate | 5.25% | 5.25% |
Hawaiian Electric | Series I, 5.00% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding | 89,657 | 89,657 |
Preferred stock, stated dividend rate | 5.00% | 5.00% |
Hawaiian Electric | Series J, 4.75% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding | 250,000 | 250,000 |
Preferred stock, stated dividend rate | 4.75% | 4.75% |
Hawaiian Electric | Series K, 4.65% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding | 175,000 | 175,000 |
Preferred stock, stated dividend rate | 4.65% | 4.65% |
Hawaii Electric Light | Series G, 7.625% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 100 | |
Shares outstanding | 70,000 | 70,000 |
Preferred stock, stated dividend rate | 7.625% | 7.625% |
Maui Electric | Series H, 7.625% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 100 | |
Shares outstanding | 50,000 | 50,000 |
Preferred stock, stated dividend rate | 7.625% | 7.625% |
Consolidated Statements of Ch_3
Consolidated Statements of Changes in Common Stock Equity - HECO - USD ($) $ in Thousands | Total | Retained earnings | Accumulated other comprehensive income (loss) | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and SubsidiariesCommon stock | Hawaiian Electric Company, Inc. and SubsidiariesPremium on capital stock | Hawaiian Electric Company, Inc. and SubsidiariesRetained earnings | Hawaiian Electric Company, Inc. and SubsidiariesAccumulated other comprehensive income (loss) |
Beginning Balance at Dec. 31, 2016 | $ 2,066,753 | $ 438,972 | $ (33,129) | $ 1,799,787 | $ 106,818 | $ 601,491 | $ 1,091,800 | $ (322) |
Balance (in shares) at Dec. 31, 2016 | 16,020,000 | |||||||
Increase (decrease) in stockholders' equity | ||||||||
Net income for common stock | 165,297 | 165,297 | 119,951 | 119,951 | ||||
Other comprehensive income (loss), net of tax benefits | (1,372) | (1,372) | (688) | (688) | ||||
Reclass of AOCI for tax rate reduction impact1 | (7,440) | (209) | 209 | (209) | ||||
Issuance of common stock, net of expenses | 14,000 | $ 816 | 13,184 | |||||
Issuance of common stock, net of expenses (in shares) | 122,000 | |||||||
Common stock dividends | (134,873) | (134,873) | (87,767) | (87,767) | ||||
Ending Balance at Dec. 31, 2017 | 2,097,386 | 476,836 | (41,941) | 1,845,283 | $ 107,634 | 614,675 | 1,124,193 | (1,219) |
Balance (in shares) at Dec. 31, 2017 | 16,142,000 | |||||||
Increase (decrease) in stockholders' equity | ||||||||
Net income for common stock | 201,774 | 201,774 | 143,653 | 143,653 | ||||
Other comprehensive income (loss), net of tax benefits | (8,669) | (8,669) | 1,318 | 1,318 | ||||
Issuance of common stock, net of expenses | 70,692 | $ 4,062 | 66,630 | |||||
Issuance of common stock, net of expenses (in shares) | 609,000 | |||||||
Common stock dividends | (134,987) | (134,987) | (103,305) | (103,305) | ||||
Ending Balance at Dec. 31, 2018 | $ 2,162,280 | 543,623 | (50,610) | 1,957,641 | $ 111,696 | 681,305 | 1,164,541 | 99 |
Balance (in shares) at Dec. 31, 2018 | 108,879,245 | 16,751,000 | ||||||
Increase (decrease) in stockholders' equity | ||||||||
Net income for common stock | $ 217,882 | 217,882 | 156,840 | 156,840 | ||||
Other comprehensive income (loss), net of tax benefits | 30,571 | 30,571 | (1,378) | (1,378) | ||||
Issuance of common stock, net of expenses | 35,501 | $ 1,982 | 33,519 | |||||
Issuance of common stock, net of expenses (in shares) | 297,000 | |||||||
Common stock dividends | (139,463) | (139,463) | (101,252) | (101,252) | ||||
Ending Balance at Dec. 31, 2019 | $ 2,280,260 | $ 622,042 | $ (20,039) | $ 2,047,352 | $ 113,678 | $ 714,824 | $ 1,220,129 | $ (1,279) |
Balance (in shares) at Dec. 31, 2019 | 108,973,328 | 17,048,000 |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows - HECO - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income | $ 219,772,000 | $ 203,664,000 | $ 167,187,000 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 229,858,000 | 214,036,000 | 200,658,000 |
Other amortization | 48,255,000 | 41,593,000 | 21,340,000 |
Deferred income taxes | (15,085,000) | (9,368,000) | 37,835,000 |
Allowance for equity funds used during construction | (11,987,000) | (10,877,000) | (12,483,000) |
Other | 10,822,000 | (4,219,000) | (3,324,000) |
Changes in assets and liabilities | |||
Decrease (increase) in fuel oil stock | (11,493,000) | 7,054,000 | (20,794,000) |
Decrease (increase) in regulatory assets | 71,262,000 | 9,252,000 | (17,256,000) |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (27,538,000) | 29,429,000 | 20,685,000 |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (4,482,000) | 20,871,000 | 882,000 |
Change in other assets and liabilities | (34,724,000) | 15,488,000 | (25,551,000) |
Net cash provided by operating activities | 512,470,000 | 499,312,000 | 420,441,000 |
Cash flows from investing activities | |||
Capital expenditures | (457,520,000) | (537,369,000) | (495,187,000) |
Other, net | 13,292,000 | 14,534,000 | 7,487,000 |
Net cash used in investing activities | (541,709,000) | (792,059,000) | (815,299,000) |
Cash flows from financing activities | |||
Common stock dividends | (139,463,000) | (134,987,000) | (134,873,000) |
Proceeds from issuance of long-term debt | 289,349,000 | 250,000,000 | 532,325,000 |
Repayment of long-term debt and funds transferred for repayment of long-term debt | (287,285,000) | (53,887,000) | (465,000,000) |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 86,718,000 | (18,999,000) | 67,992,000 |
Repayment of short-term debt | (50,000,000) | (50,000,000) | (75,000,000) |
Other | (1,836,000) | (1,603,000) | (6,349,000) |
Net cash used in financing activities | 87,716,000 | 200,074,000 | 378,287,000 |
Net decrease in cash and equivalents | 58,477,000 | (92,673,000) | (16,571,000) |
Cash, cash equivalents and restricted cash, January 1 | 169,208,000 | 261,881,000 | 278,452,000 |
Cash, cash equivalents and restricted cash, December 31 | 227,685,000 | 169,208,000 | 261,881,000 |
Less: Restricted cash | (30,872,000) | 0 | 0 |
Cash and cash equivalents | 196,813,000 | 169,208,000 | 261,881,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Cash flows from operating activities | |||
Net income | 158,835,000 | 145,648,000 | 121,946,000 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 215,731,000 | 203,626,000 | 192,784,000 |
Other amortization | 29,631,000 | 26,602,000 | 8,498,000 |
Deferred income taxes | (16,284,000) | (7,982,000) | 38,037,000 |
Income tax credits, net | 27,259,000 | (99,000) | (52,000) |
State refundable credit | (8,369,000) | (6,239,000) | (2,251,000) |
Allowance for equity funds used during construction | (11,987,000) | (10,877,000) | (12,483,000) |
Other | 200,000 | 4,768,000 | 1,237,000 |
Changes in assets and liabilities | |||
Decrease (increase) in accounts receivable | 20,956,000 | (50,917,000) | 2,914,000 |
Decrease (increase) in accrued unbilled revenues | 4,511,000 | (14,684,000) | (15,361,000) |
Decrease (increase) in fuel oil stock | (12,002,000) | 6,938,000 | (20,443,000) |
Increase in materials and supplies | (5,498,000) | (807,000) | (718,000) |
Decrease (increase) in regulatory assets | 71,262,000 | 9,252,000 | (17,256,000) |
Increase in regulatory liabilities | 1,953,000 | 37,358,000 | 3,602,000 |
Increase (decrease) in accounts payable | (2,051,000) | 24,358,000 | 25,734,000 |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (28,523,000) | 25,036,000 | 29,862,000 |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (4,448,000) | 18,746,000 | 604,000 |
Change in other assets and liabilities | (17,220,000) | (17,114,000) | (21,468,000) |
Net cash provided by operating activities | 423,956,000 | 393,613,000 | 335,186,000 |
Cash flows from investing activities | |||
Capital expenditures | (419,898,000) | (415,264,000) | (376,865,000) |
Other, net | 11,374,000 | 10,082,000 | 4,578,000 |
Net cash used in investing activities | (408,524,000) | (405,182,000) | (372,287,000) |
Cash flows from financing activities | |||
Common stock dividends | (101,252,000) | (103,305,000) | (87,767,000) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,995,000) | (1,995,000) | (1,995,000) |
Proceeds from issuance of common stock | 35,500,000 | 70,700,000 | 14,000,000 |
Proceeds from issuance of long-term debt | 280,000,000 | 100,000,000 | 315,000,000 |
Repayment of long-term debt and funds transferred for repayment of long-term debt | (283,546,000) | (50,000,000) | (265,000,000) |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 38,987,000 | (4,999,000) | 4,999,000 |
Proceeds from issuance of short-term debt | 75,000,000 | 25,000,000 | 0 |
Repayment of short-term debt | (50,000,000) | 0 | 0 |
Other | (2,109,000) | (472,000) | (3,905,000) |
Net cash used in financing activities | (9,415,000) | 34,929,000 | (24,668,000) |
Net decrease in cash and equivalents | 6,017,000 | 23,360,000 | (61,769,000) |
Cash, cash equivalents and restricted cash, January 1 | 35,877,000 | 12,517,000 | 74,286,000 |
Cash, cash equivalents and restricted cash, December 31 | 41,894,000 | 35,877,000 | 12,517,000 |
Less: Restricted cash | (30,872,000) | 0 | 0 |
Cash and cash equivalents | $ 11,022,000 | $ 35,877,000 | $ 12,517,000 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 1 · Summary of significant accounting policies General Hawaiian Electric Industries, Inc. (HEI) is a holding company with direct and indirect subsidiaries principally engaged in electric utility, banking, and renewable/sustainable infrastructure investment businesses operating in the State of Hawaii . HEI owns Hawaiian Electric Company, Inc. (Hawaiian Electric), ASB Hawaii, Inc., an intermediate holding company that owns American Savings Bank, F.S.B. (ASB), and Pacific Current, LLC (Pacific Current). Pacific Current’s significant subsidiaries include Hamakua Energy, LLC (Hamakua Energy) and Mauo, LLC (Mauo). Hawaiian Electric and its wholly owned operating subsidiaries, Hawaii Electric Light Company, Inc. (Hawaii Electric Light) and Maui Electric Company, Limited (Maui Electric), are regulated public electric utilities (collectively, the Utilities) in the business of generating, purchasing, transmitting, distributing and selling electric energy on all major islands in Hawaii other than Kauai. See Note 2 . ASB is a federally chartered savings bank providing a full range of banking services to individual and business customers through its branch system in Hawaii. Hamakua Energy, owns and operates a 60 -megawatt (MW) combined-cycle power plant, which sells the power it produces only to Hawaii Electric Light. Mauo is a commercial-scale, solar-plus-storage project ( 8.6 MW of solar and 42.3 MW of storage) currently under construction on the islands of Oahu and Maui. Basis of presentation. In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change for HEI and its subsidiaries (collectively, the Company) include the amounts reported as fair value for investment securities (ASB only); pension and other postretirement benefit obligations; contingencies and litigation; income taxes; regulatory assets and liabilities (Utilities only); electric utility unbilled revenues (Utilities only); asset retirement obligations (Utilities only); and allowance for loan losses (ASB only). Consolidation. The HEI consolidated financial statements include the accounts of HEI and its subsidiaries. The Hawaiian Electric consolidated financial statements include the accounts of Hawaiian Electric and its subsidiaries. When HEI or Hawaiian Electric has a controlling financial interest in another entity (usually, majority voting interest), that entity is consolidated. Investments in companies over which the Company or the Utilities have the ability to exercise significant influence, but not control, are accounted for using the equity method. The consolidated financial statements exclude variable interest entities (VIEs) when the Company or the Utilities are not the primary beneficiaries. In general, significant intercompany amounts are eliminated in consolidation (see Note 2 for exceptions). Cash and cash equivalents. The Utilities consider cash on hand, deposits in banks, money market accounts, certificates of deposit, short-term commercial paper of non-affiliates and liquid investments (with original maturities of three months or less) to be cash and cash equivalents. The Company considers the same items to be cash and cash equivalents as well as ASB’s deposits with the Federal Home Loan Bank (FHLB), federal funds sold (excess funds that ASB loans to other banks overnight at the federal funds rate) and securities purchased under resale agreements with original maturities of three months or less. Additionally, ASB is required by the Federal Reserve System to maintain noninterest-bearing cash reserves equal to a percentage of certain deposits. The reserve requirement for ASB at December 31, 2019 and 2018 was $26.2 million and $28.1 million , respectively. Restricted cash. The Utilities consider funds on deposit with trustees, which represent the undrawn proceeds from the issuance of special purpose revenue bonds to be restricted cash because these funds are available only to finance (or reimburse payment of) approved capital expenditures. At December 31, 2019 and 2018 , total restricted cash of Utilities was $30.9 million and nil , respectively (see Note 6 ). Property, plant and equipment. Property, plant and equipment are reported at cost. Self-constructed electric utility plant includes engineering, supervision, administrative and general costs and an allowance for the cost of funds used during the construction period. These costs are recorded in construction in progress and are transferred to utility plant when construction is completed and the facilities are either placed in service or become useful for public utility purposes. Costs for betterments that make utility plant more useful, more efficient, of greater durability or of greater capacity are also capitalized. Upon the retirement or sale of electric utility plant, generally no gain or loss is recognized. The cost of the plant retired is charged to accumulated depreciation. Amounts collected from customers for cost of removal are included in regulatory liabilities. See discussion regarding “Utility projects” in Note 3 . Depreciation. Depreciation is computed primarily using the straight-line method over the estimated lives of the assets being depreciated. Electric utility plant additions in the current year are depreciated beginning January 1 of the following year in accordance with rate-making. Electric utility plant has lives ranging from 16 to 88 years for production plant, from 10 to 79 years for transmission and distribution plant and from 5 to 65 years for general plant. The Utilities’ composite annual depreciation rate, which includes a component for cost of removal, was 3.2% in 2019 , 2018 and 2017 . Retirement benefits. Pension and other postretirement benefit costs are charged primarily to expense and electric utility plant (in the case of the Utilities). Funding for the Company’s qualified pension plans (Plans) is based on actuarial assumptions adopted by the Pension Investment Committee administering the Plans. The participating employers contribute amounts to a master pension trust for the Plans in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA), including changes promulgated by the Pension Protection Act of 2006, and considering the deductibility of contributions under the Internal Revenue Code. The Company generally funds at least the net periodic pension cost during the year, subject to ERISA minimum and Internal Revenue Code limits and targeted funded status. Certain health care and/or life insurance benefits are provided to eligible retired employees and the employees’ beneficiaries and covered dependents. The Company generally funds the net periodic postretirement benefit costs other than pensions (except for executive life) for postretirement benefits other than pensions (OPEB), while maximizing the use of the most tax-advantaged funding vehicles, subject to cash flow requirements and reviews of the funded status with the consulting actuary. Environmental expenditures. The Company and the Utilities are subject to numerous federal and state environmental statutes and regulations. In general, environmental contamination treatment costs are charged to expense. Environmental costs are capitalized if the costs extend the life, increase the capacity, or improve the safety or efficiency of property; the costs mitigate or prevent future environmental contamination; or the costs are incurred in preparing the property for sale. Environmental costs are either capitalized or charged to expense when environmental assessments and/or remedial efforts are probable and the cost can be reasonably estimated. The Utilities review their sites and measure the liability quarterly by assessing a range of reasonably likely costs of each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. Income taxes. Deferred income tax assets and liabilities are established for the temporary differences between the financial reporting bases and the tax bases of the Company’s and the Utilities’ assets and liabilities at federal and state tax rates expected to be in effect when such deferred tax assets or liabilities are realized or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. HEI and the Utilities’ investment tax credits are deferred and amortized over the estimated useful lives of the properties to which the credits relate (and for the Utilities, this treatment is in accordance with Accounting Standards Codification (ASC) Topic 980, “Regulated Operations”). The Utilities are included in the consolidated income tax returns of HEI. However, income tax expense has been computed for financial statement purposes as if each utility filed a separate income tax return and Hawaiian Electric filed a consolidated Hawaiian Electric income tax return. Governmental tax authorities could challenge a tax return position taken by the Company. The Company and the Utilities use a “more-likely-than-not” recognition threshold and measurement standard for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. 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 about market participant assumptions based on the best information available in the circumstances. These valuations are estimates at a specific point in time, based on relevant market information, information about the financial instrument and judgments regarding future expected loss experience, economic conditions, risk characteristics of various financial instruments and other factors. These estimates do not reflect any premium or discount that could result if the Company or the Utilities were to sell its entire holdings of a particular financial instrument at one time. Because no active trading market exists for a portion of the Company’s and the Utilities’ financial instruments, fair value estimates cannot be determined with precision. Changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses could have a significant effect on fair value estimates, but have not been considered in making such estimates. The Company and the Utilities group 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, real estate acquired in settlement of loans, goodwill and asset retirement obligations (AROs). Earnings per share (HEI only). Basic earnings per share (EPS) is computed by dividing net income for common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that dilutive common shares for stock compensation is added to the denominator. There were no shares of antidilutive securities outstanding during the years ended December 31, 2019, 2018 and 2017. Impairment of long-lived assets and long-lived assets to be disposed of. The Company and the Utilities review long-lived assets and certain identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. Recent accounting pronouncements. Leases . In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 (ROU) 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 finance leases, a lessee is required to recognize interest on the lease liability separately from amortization of the ROU asset in the consolidated statements 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 adopted ASU No. 2016-02 on January 1, 2019 and used the effective date as the date of initial application. Consequently, financial information for dates and periods before January 1, 2019 will not be updated and the disclosures required under the new standard will not be provided (i.e., the Company will continue to report prior comparative periods presented in the financial statements under Accounting Standards Codification (ASC) 840, including the required disclosures under ASC 840). The most significant effect of the new standard relates to the recognition of new ROU assets and lease liabilities on the Company’s balance sheet for purchase power agreements and real estate operating leases. On adoption, the Company recognized additional lease liabilities of approximately $257 million for the Company and approximately $236 million for the Utilities ( $215 million related to PPAs), based on the present value of the remaining minimum rental payments, with corresponding ROU assets for existing operating leases, under current leasing standards. In determining the lease liability upon transition, the Company used the incremental borrowing rates as of the adoption date based on the remaining lease term and remaining lease payments. See Note 8 for more information. 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 Company and Utilities will adopt ASU No. 2016-13 using an effective date of January 1, 2020 and will apply the guidance using a modified retrospective basis with the cumulative effect of initially applying the amendments to be recognized in retained earnings as of January 1, 2020. The allowance for credit losses (ACL) is a material estimate of the Company. As a result of the change from an incurred loss model to a methodology that considers the credit loss over the expected life of the loan, the Company expects to record, upon completing its final analysis, an adjustment between $18 million to $22 million to increase the ACL, with a corresponding adjustment to reduce retained earnings as of January 1, 2020. The ACL is based on the composition, characteristics and quality of the loans and off balance sheet credit exposures as well as the prevailing economic conditions as of the adoption date. The increase to the ACL for the loan portfolio will result in a decrease to retained earnings and regulatory capital amounts and ratios. However, ASB expects to remain well capitalized under the regulatory framework after the adoption of ASU No. 2016-13. Based on the credit quality of the Company’s existing held-to-maturity and AFS investment securities portfolio, the Company will not recognize an ACL at adoption for those investments. The adoption of the new standard did not have a material impact to the Utilities’ customer and other accounts receivables and accrued unbilled revenue. Compensation-retirement benefits-defined benefit plans . In August 2018, the FASB issued ASU No. 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans,” which makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The new guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and requires new ones that the FASB considers pertinent. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020 . The Company early adopted ASU No. 2018-14, effective for the year ended December 31, 2019, and applied the amended disclosure requirements to all periods presented. See Note 10 for additional information regarding the Company’s employee benefit plans. Codification Improvements . In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which is intended to clarify certain issues related to the accounting for financial instruments. • With respect to Topic 326, Financial Instruments - Credit Losses , ASU No. 2019-04 allows entities to measure the allowance for credit losses on accrued interest receivable balances separately from other components of the amortized cost basis of associated financial assets, or to make an accounting policy election not to measure an allowance for credit losses on accrued interest receivable amounts if an entity writes off the uncollectible accrued interest receivable balance in a timely manner and makes certain disclosures. ASU No. 2019-04 also allows an entity to make an accounting policy election regarding the presentation and disclosure of accrued interest receivables and the related allowance for credit losses for those accrued interest receivables. ASU No. 2019-04 also clarifies certain issues related to transfers between classifications or categories for loans and debt securities, recoveries, variable interest rates and prepayments, vintage disclosures, and contractual extensions and renewal options. • With respect to Topic 815, Derivatives and Hedging , ASU No. 2019-04 provides amendments, among others, that address partial-term fair value hedges, fair value hedge basis adjustments, and certain transition requirements. • With respect to Topic 825, Financial Instruments , ASU No. 2019-04 clarifies the scope of the guidance and disclosure requirements with respect to recognizing and measuring financial instruments. The amended guidance in ASU No. 2019-04 is effective for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU No. 2019-04 in the first quarter of 2020 and the impact of the ASU on the Company’s consolidated financial statements was not material. Reclassifications. Certain reclassifications have been made to prior years’ financial statements to conform to the 2019 presentation, which did not affect previously reported results of operations. Electric utility Regulation by the Public Utilities Commission of the State of Hawaii (PUC). The Utilities are regulated by the PUC and account for the effects of regulation under FASB ASC Topic 980, “Regulated Operations.” As a result, the Utilities’ financial statements reflect assets, liabilities, revenues and expenses based on current cost-based rate-making regulations (see Note 3—“Regulatory assets and liabilities”). Their continued accounting under ASC Topic 980 generally requires that rates are established by an independent, third-party regulator; rates are designed to recover the costs of providing service; and it is reasonable to assume that rates can be charged to, and collected from, customers. The rate schedules of the Utilities include energy costs recovery clauses (ECRCs) under which electric rates are adjusted for changes in the weighted-average price paid for fuel oil and certain components of purchased power, and the relative amounts of company-generated power and purchased power. The rate schedules also include purchased power adjustment clauses (PPACs) under which the remaining purchase power expenses are recovered through surcharge mechanisms. The amounts collected through the ECRCs and PPACs are required to be reconciled quarterly. Accounts receivable. Accounts receivable are recorded at the invoiced amount. The Utilities generally assess a late payment charge on balances unpaid from the previous month. The allowance for doubtful accounts is the Utilities’ best estimate of the amount of probable credit losses in the Utilities’ existing accounts receivable. At December 31, 2019 and 2018 , the allowance for customer accounts receivable, accrued unbilled revenues and other accounts receivable was $1.4 million and $1.5 million , respectively. Electric utility revenues. Revenues related to electric service are generally recorded when service is rendered and include revenues applicable to energy consumed in the accounting period but not yet billed to the customers. The Utilities also record revenue under a decoupling mechanism. See “ Decoupling” discussion in Note 3 - Electric Utility segment. Repairs and maintenance costs. Repairs and maintenance costs for overhauls of generating units are generally expensed as they are incurred. Allowance for funds used during construction (AFUDC). AFUDC is an accounting practice whereby the costs of debt and equity funds used to finance plant construction are credited on the statement of income and charged to construction in progress on the balance sheet. If a project under construction is delayed for an extended period of time, AFUDC on the delayed project may be stopped after assessing the causes of the delay and probability of recovery. The weighted-average AFUDC rate was 7.4% in 2019 , 7.3% in 2018 and 7.7% in 2017 , and reflected quarterly compounding. Bank (HEI only) Investment securities. Investments in debt securities are classified as held-to-maturity (HTM), trading or available-for-sale (AFS). ASB determines the appropriate classification at the time of purchase. Debt securities that ASB intends to and has the ability to hold to maturity are classified as HTM securities and reported at amortized cost. Marketable debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Marketable debt securities not classified as either HTM or trading securities are classified as AFS and reported at fair value. Unrealized gains and losses for AFS securities are excluded from earnings and reported on a net basis in accumulated other comprehensive income (AOCI) until realized. Interest income is recorded on an accrual basis. Discounts and premiums on securities are accreted or amortized into interest income using the interest method over the remaining contractual lives of the agency obligation securities and the estimated lives of the mortgage-backed securities adjusted for anticipated prepayments. ASB uses actual prepayment experience and estimates of future prepayments to determine the constant effective yield necessary to apply the interest method of income recognition. The discounts and premiums on the agency obligations portfolio are accreted or amortized on a prospective basis using expected contractual cash flows. The discounts and premiums on the mortgage-backed securities portfolio are accreted or amortized on a retrospective basis using changes in anticipated prepayments. This method requires a retrospective adjustment of the effective yield each time ASB changes the estimated life as if the new estimate had been known since the original acquisition date of the securities. Estimates of future prepayments are based on the underlying collateral characteristics and historic or projected prepayment behavior of each security. The specific identification method is used in determining realized gains and losses on the sales of securities. For securities that are not trading securities, individual securities are assessed for impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant. A security is impaired if the fair value of the security is less than its carrying value at the financial statement date. When a security is impaired, ASB determines whether this impairment is temporary or other-than-temporary. If ASB does not expect to recover the entire amortized cost basis of the security or there is a change in the expected cash flows, an OTTI exists. If ASB intends to sell the security, or will more likely than not be required to sell the security before recovery of its amortized cost, the OTTI must be recognized in earnings. If ASB does not intend to sell the security, and it is not more likely than not that ASB will be required to sell the security before recovery of its amortized cost, the OTTI must be separated into the amount representing the credit loss and the amount related to all other factors. The amount of OTTI related to the credit loss is recognized in earnings, while the remaining OTTI is recognized in AOCI. Based on ASB’s evaluation as of December 31, 2019 , 2018 and 2017 , there was no indicated impairment as ASB expects to collect the contractual cash flows for these investments. Stock in Federal Home Loan Bank (FHLB) is carried at cost and is reviewed at least quarterly for impairment, with valuation adjustments recognized in noninterest income. Loans . ASB carries loans at amortized cost less the allowance for loan losses, loan origination fees (net of direct loan origination costs), commitment fees and purchase premiums and discounts. Interest on loans is credited to income as it is earned. Discounts and premiums are accreted or amortized over the life of the loans using the interest method. Loan origination fees (net of direct loan origination costs) are deferred and recognized as an adjustment in yield over periods not exceeding the contractual life of the loan using the interest method or taken into income when the loan is paid off or sold. Nonrefundable commitment fees (net of direct loan origination costs, if applicable) received for commitments to originate or purchase loans are deferred and, if the commitment is exercised, recognized as an adjustment of yield over the life of the loan using the interest method. Nonrefundable commitment fees received for which the commitment expires unexercised are recognized as income upon expiration of the commitment. Loans held for sale are stated at the lower of cost or estimated fair value on an aggregate basis. Premiums, discounts and net deferred loan fees are not amortized while a loan is classified as held for sale. A sale is recognized only when the consideration received is other than beneficial interests in the assets sold and control over the assets is transferred irrevocably to the buyer. Gains or losses on sales of loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the allocated basis of the loans sold. Allowance for loan losses. ASB maintains an allowance for loan losses to absorb losses inherent in its loan portfolio. The level of allowance for loan losses is based on a continuing assessment of existing risks in the loan portfolio, historical loss experience, changes in collateral values and current conditions (e.g., economic conditions, real estate market conditions and interest rate environment). The allowance for loan losses is allocated to loan types using both a formula-based approach applied to groups of loans and an analysis of certain individual loans for impairment. The formula-based approach emphasizes loss factors primarily derived from actual historical default and loss rates, which are combined with an assessment of certain qualitative factors to determine the allowance amounts allocated to the various loan categories. Adverse changes in any of these factors could result in higher charge-offs and provision for loan losses. ASB disaggregates its portfolio loans into portfolio segments for purposes of determining the allowance for loan losses. Commercial, commercial real estate, and commercial construction loans are defined as non-homogeneous loans and ASB utilizes a risk rating system for evaluating the credit quality of the loans. Non-homogeneous loans are also categorized into the regulatory asset quality classifications—Pass, Special Mention, Substandard, Doubtful, and Loss based on credit quality. ASB utilizes a numerical-bas |
Segment financial information
Segment financial information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment financial information | Note 2 · Segment financial information The electric utility and bank segments are strategic business units of the Company that offer different products and services and operate in different regulatory environments. The accounting policies of the segments are the same as those described for the Company in the summary of significant accounting policies, except as otherwise indicated and except that federal and state income taxes for each segment are calculated on a “stand-alone” basis. HEI evaluates segment performance based on net income. Each segment accounts for intersegment sales and transfers as if the sales and transfers were to third parties (i.e., at current market prices). Intersegment revenues consist primarily of Hamakua Energy revenues, interest, rent and preferred stock dividends. Electric utility Hawaiian Electric and its wholly owned operating subsidiaries, Hawaii Electric Light and Maui Electric, are public electric utilities in the business of generating, purchasing, transmitting, distributing and selling electric energy on all major islands in Hawaii other than Kauai, and are regulated by the PUC. The utility subsidiaries are aggregated within the electric utility segment because they: (1) are involved in the business of supplying electric energy in the same geographical location (i.e., the State of Hawaii), (2) have similar production processes that comprise electric generation, (3) serve similar customers within their franchise territories (e.g., residential, commercial and industrial customers), (4) use similar electric grids to distribute the energy to their customers, (5) are regulated by the PUC and undergo similar rate-making processes, (6) have similar economic characteristics and (7) perform financial reporting oversight and management of the business at the consolidated level. Bank ASB is a federally chartered savings bank that provides a full range of banking services to individual and business customers through its branch system in Hawaii. ASB is subject to examination and comprehensive regulation by the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC), and is subject to reserve requirements established by the Board of Governors of the Federal Reserve System. Other “Other” includes amounts for the holding companies (HEI and ASB Hawaii, Inc.), Pacific Current, and other subsidiaries not qualifying as reportable segments, and intercompany eliminations. Pacific Current. Pacific Current was formed in September 2017 to focus on investing in non-regulated renewable energy and sustainable infrastructure in the State of Hawaii to help achieve the state’s sustainability goals. Significant investments of Pacific Current made through its subsidiaries, Hamakua Energy, LLC and Mauo, LLC, include: Hamakua power plant . On November 24, 2017, Hamakua Energy, LLC acquired Hamakua Energy Partners, L.P.’s 60 -MW combined cycle power plant and other assets from affiliates of ArcLight Capital Partners, a private equity firm. The plant sells all the power it produces to Hawaii Electric Light under an existing power purchase agreement (PPA) that expires in 2030. Solar + Storage Power Purchase Agreement (PPA) . On February 2, 2018, Mauo, LLC executed definitive agreements to acquire a solar-plus-storage PPA for a multi-site, commercial-scale project that will provide 8.6 MW of solar capacity and 42.3 MWH of storage capacity on the islands of Maui and Oahu. The PPA has a 15 -year term with an option to extend for an additional five years . The system is currently being constructed by a third party contractor under an Engineering, Procurement and Construction (EPC) contract that was contemporaneously negotiated and executed by Mauo, LLC. The EPC contract provides a fixed price for the purchase of the completed system, a project completion schedule and performance obligations designed to match the requirements of the PPA. Mauo, LLC is funding the construction of the project with a construction facility that will be repaid at the commercial operation date (ultimately with cash from investment tax credits, state renewable tax credits, non-recourse project debt, and equity). There are five separate project sites, which are expected to be placed into service during 2020. Segment financial information was as follows: (in thousands) Electric utility Bank Other Total 2019 Revenues from external customers $ 2,545,865 $ 328,570 $ 166 $ 2,874,601 Intersegment revenues (eliminations) 77 — (77 ) — Revenues 2,545,942 328,570 89 2,874,601 Depreciation and amortization 245,362 28,675 4,076 278,113 Interest expense, net 70,842 18,440 20,057 109,339 Income (loss) before income taxes 197,140 112,034 (37,765 ) 271,409 Income taxes (benefit) 38,305 23,061 (9,729 ) 51,637 Net income (loss) 158,835 88,973 (28,036 ) 219,772 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income (loss) for common stock 156,840 88,973 (27,931 ) 217,882 Capital expenditures 419,898 24,175 13,447 457,520 Assets (at December 31, 2019) 6,388,682 7,233,017 123,552 13,745,251 2018 Revenues from external customers $ 2,546,472 $ 314,275 $ 102 $ 2,860,849 Intersegment revenues (eliminations) 53 — (53 ) — Revenues 2,546,525 314,275 49 2,860,849 Depreciation and amortization 230,228 21,443 3,958 255,629 Interest expense, net 73,348 15,539 15,329 104,216 Income (loss) before income taxes 180,426 106,578 (32,543 ) 254,461 Income taxes (benefit) 34,778 24,069 (8,050 ) 50,797 Net income (loss) 145,648 82,509 (24,493 ) 203,664 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income (loss) for common stock 143,653 82,509 (24,388 ) 201,774 Capital expenditures 1 415,264 72,666 18,840 537,369 Assets (at December 31, 2018) 5,967,503 7,027,894 108,654 13,104,051 2017 Revenues from external customers $ 2,257,455 $ 297,640 $ 530 $ 2,555,625 Intersegment revenues (eliminations) 111 — (111 ) — Revenues 2,257,566 297,640 419 2,555,625 Depreciation and amortization 201,282 19,416 1,300 221,998 Interest expense, net 69,637 12,156 9,335 91,128 Income (loss) before income taxes 205,145 98,716 (27,281 ) 276,580 Income taxes (benefit) 83,199 31,719 (5,525 ) 109,393 Net income (loss) 121,946 66,997 (21,756 ) 167,187 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income (loss) for common stock 119,951 66,997 (21,651 ) 165,297 Capital expenditures 1 376,865 53,272 317 495,187 Assets (at December 31, 2017) 5,630,613 6,798,659 104,888 12,534,160 1 Contributions in aid of construction balances are included in capital expenditures. Intercompany electricity sales of the Utilities to ASB 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. Hamakua Energy’s sales to Hawaii Electric Light (a regulated affiliate) are eliminated in consolidation. |
Electric utility segment
Electric utility segment | 12 Months Ended |
Dec. 31, 2019 | |
Electric utility subsidiary | |
Electric utility segment | Note 3 · Electric utility segment Regulatory assets and liabilities. Regulatory assets represent deferred costs and accrued decoupling revenues which are expected to be recovered through rates over PUC-authorized periods. Generally, the Utilities do not earn a return on their regulatory assets; however, they have been allowed to recover interest on certain regulatory assets and to include certain regulatory assets in rate base. Regulatory liabilities represent amounts included in rates and collected from ratepayers for costs expected to be incurred in the future, or amounts collected in excess of costs incurred that are refundable to customers. For example, the regulatory liability for cost of removal in excess of salvage value represents amounts that have been collected from ratepayers for costs that are expected to be incurred in the future to retire utility plant. Generally, the Utilities include regulatory liabilities in rate base or are required to apply interest to certain regulatory liabilities. In the table below, noted in parentheses are the original PUC authorized amortization or recovery periods and, if different, the remaining amortization or recovery periods as of December 31, 2019 are noted. Regulatory assets were as follows: December 31 2019 2018 (in thousands) Retirement benefit plans (balance primarily varies with plans’ funded statuses) $ 554,485 $ 624,126 Income taxes (1-55 years) 102,612 114,076 Decoupling revenue balancing account and RAM (1-2 years) — 49,560 Unamortized expense and premiums on retired debt and equity issuances (1-20 years; 1-19 years remaining) 10,228 10,065 Vacation earned, but not yet taken (1 year) 12,535 10,820 Other (1-39 years remaining) 35,220 24,779 Total regulatory assets $ 715,080 $ 833,426 Included in: Current assets $ 30,710 $ 71,016 Long-term assets 684,370 762,410 Total regulatory assets $ 715,080 $ 833,426 Regulatory liabilities were as follows: December 31 2019 2018 (in thousands) Cost of removal in excess of salvage value (1-60 years) $ 521,977 $ 491,006 Income taxes (1-55 years) 386,990 413,339 Decoupling revenue balancing account and RAM (1-2 years) 16,370 — Retirement benefit plans (balance primarily varies with plans’ funded statuses) 21,707 19,129 Other (1-19 years remaining) 25,266 26,762 Total regulatory liabilities $ 972,310 $ 950,236 Included in: Current liabilities $ 30,724 $ 17,977 Long-term liabilities 941,586 932,259 Total regulatory liabilities $ 972,310 $ 950,236 The regulatory asset and liability relating to retirement benefit plans was recorded as a result of pension and OPEB tracking mechanisms adopted by the PUC in rate case decisions for the Utilities in 2007 (see Note 10 ). Major customers. The Utilities received 11% ( $281 million ), 11% ( $273 million ) and 11% ( $239 million ) of their operating revenues from the sale of electricity to various federal government agencies in 2019 , 2018 and 2017 , respectively. Cumulative preferred stock. The following series of cumulative preferred stock are redeemable only at the option of the respective company at the following prices in the event of voluntary liquidation or redemption: December 31, 2019 Voluntary liquidation price Redemption price Series C, D, E, H, J and K (Hawaiian Electric) $ 20 $ 21 I (Hawaiian Electric) 20 20 G (Hawaii Electric Light) 100 100 H (Maui Electric) 100 100 Hawaiian Electric is obligated to make dividend, redemption and liquidation payments on the preferred stock of each of its subsidiaries if the respective subsidiary is unable to make such payments, but this obligation is subordinated to Hawaiian Electric’s obligation to make payments on its own preferred stock. Related-party transactions. HEI charged the Utilities $ 6.0 million , $5.9 million and $6.2 million for general management and administrative services in 2019 , 2018 and 2017 , respectively. The amounts charged by HEI to its subsidiaries for services provided by HEI employees are allocated primarily on the basis of time expended in providing such services. For the years ended December 31, 2019 and December 31, 2018 , Hamakua Energy, LLC (an indirect subsidiary of HEI) sold energy and capacity to Hawaii Electric Light (subsidiary of Hawaiian Electric and indirect subsidiary of HEI) under a PPA in the amount of $68 million and $56 million , respectively. Hawaiian Electric’s short-term borrowings from HEI totaled nil at December 31, 2019 and 2018 . Borrowings among the Utilities are eliminated in consolidation. Interest charged by HEI to Hawaiian Electric was not material for the years ended December 31, 2019 and 2018 . HECO Capital Trust III. Trust III, a wholly-owned unconsolidated subsidiary of Hawaiian Electric, 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. On May 15, 2019, Trust III redeemed $50 million of its outstanding 2004 Trust Preferred Securities and $1.5 million of trust common securities. Subsequently a Certificate of Cancellation of Statutory Trust was filed with the Delaware Secretary of State in order to cancel the Trust III, which became effective on June 10, 2019. For the year-to-date period ending on the Trust’s cancellation date on June 10, 2019, Trust III’s income statement consisted of $1.2 million of interest income received from the 2004 Debentures; $1.2 million of distributions to holders of the Trust Preferred Securities; and $37,000 of common dividends on the trust common securities to Hawaiian Electric. Unconsolidated variable interest entities. Power purchase agreements . As of December 31, 2019 , the Utilities had four PPAs for firm capacity (excluding the PGV PPA as Puna Geothermal Venture (PGV) has been offline since May 2018 due to lava flow on Hawaii Island) and other PPAs with independent power producers (IPPs) and Schedule Q providers (i.e., 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. Pursuant to the current accounting standards for VIEs, the Utilities are deemed to have a variable interest in Kalaeloa Partners, L.P. (Kalaeloa), AES Hawaii, Inc. (AES Hawaii) and Hamakua Energy by reason of the provisions of the PPA that the Utilities have with the three IPPs. However, management has concluded that the Utilities are not the primary beneficiary of Kalaeloa, AES Hawaii and Hamakua Energy because the Utilities do not have the power to direct the activities that most significantly impact the three IPPs’ economic performance nor the obligation to absorb their expected losses, if any, that could potentially be significant to the IPPs. Thus, the Utilities have not consolidated Kalaeloa, AES Hawaii and Hamakua Energy in its consolidated financial statements. Hamakua Energy is an indirect subsidiary of Pacific Current, and is consolidated in HEI’s consolidated financial statements. For the other PPAs with IPPs, the Utilities have concluded that the consolidation of the IPPs was not required because either the Utilities do not have variable interests in the IPPs due to the absence of an obligation in the PPAs for the Utilities to absorb any variability of the IPPs, or the IPP was considered a “governmental organization,” and thus excluded from the scope of accounting standards for VIEs. Two IPPs of as-available energy declined to provide the information necessary for Utilities to determine the applicability of accounting standards for VIEs. If information is ultimately received from the IPPs, a possible outcome of future analyses of such information is the consolidation of one or both of such IPPs in the Consolidated Financial Statements. The consolidation of any significant IPP could have a material effect on the Consolidated Financial Statements, including the recognition of a significant amount of assets and liabilities and, if such a consolidated IPP were operating at a loss and had insufficient equity, the potential recognition of such losses. If the Utilities determine they are required to consolidate the financial statements of such an IPP and the consolidation has a material effect, the Utilities would retrospectively apply accounting standards for VIEs to the IPP. 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 . Purchases from all IPPs were as follows: Years ended December 31 2019 2018 2017 (in millions) Kalaeloa $ 214 $ 216 $ 180 AES Hawaii 139 140 140 HPOWER 76 69 67 Puna Geothermal Venture — 15 38 Hamakua Energy 68 56 35 Wind IPPs 95 107 97 Solar IPPs 36 29 27 Other IPPs 1 5 7 3 Total IPPs $ 633 $ 639 $ 587 1 Includes hydro power and other PPAs As of December 31, 2019 , the Utilities had four firm capacity PPAs for a total of 516.5 megawatts (MW) of firm capacity. Since May 2018, PGV facility with 34.6 MW of firm capacity has been offline due to lava flow on Hawaii Island. The PUC allows rate recovery for energy and firm capacity payments to IPPs under these agreements. Assuming that each of the agreements remains in place for its current term (and as amended) and the minimum availability criteria in the PPAs are met, aggregate minimum fixed capacity charges are expected to be approximately $51 million in 2020 , $38 million each in 2021, 2022 , 2023 and 2024 , and $241 million from 2025 through 2033. In general, the Utilities base their payments under the PPAs upon available capacity and actual energy supplied and they are generally not required to make payments for capacity if the contracted capacity is not available, and payments are reduced, under certain conditions, if available capacity drops below contracted levels. In general, the payment rates for capacity have been predetermined for the terms of the agreements. Energy payments will vary over the terms of the agreements. The Utilities pass on changes in the fuel component of the energy charges to customers through the ECRC in their rate schedules. The Utilities do not operate, or participate in the operation of, any of the facilities that provide power under the agreements. Title to the facilities does not pass to Hawaiian Electric or its subsidiaries upon expiration of the agreements, and the agreements do not contain bargain purchase options for the facilities. Purchase power adjustment clause. The PUC has approved purchased power adjustment clauses (PPACs) for the Utilities. Purchased power capacity, O&M and other non-energy costs previously recovered through base rates are now recovered in the PPACs and, subject to approval by the PUC, such costs resulting from new purchased power agreements can be added to the PPACs outside of a rate case. Purchased energy costs continue to be recovered through the ECRC. Kalaeloa Partners, L.P. Under a 1988 PPA, as amended, Hawaiian Electric is committed to purchase 208 MW of firm capacity from Kalaeloa. Hawaiian Electric and Kalaeloa are currently in negotiations to address the PPA term that ended on May 23, 2016. The PPA automatically extends on a month-to-month basis as long as the parties are still negotiating in good faith. Hawaiian Electric and Kalaeloa have agreed that neither party will terminate the PPA (which has been subject to automatic extension on a month-to-month basis) prior to July 31, 2020, to allow for a negotiated resolution and PUC approval. AES Hawaii, Inc. Under a PPA entered into in March 1988, as amended (through Amendment No. 2) for a period of 30 years ending September 2022, Hawaiian Electric agreed to purchase 180 MW of firm capacity from AES Hawaii. Hawaiian Electric and AES Hawaii have been in dispute over an additional 9 MW of capacity. In February 2018, Hawaiian Electric reached agreement with AES Hawaii on an amendment to the PPA. However, in June 2018, the PUC issued an order suspending review of the amendment pending a DOH decision on AES Hawaii’s request for approval of its Emission Reduction Plan and partnership with Hawaiian Electric. If approved by the PUC, the amendment will resolve AES Hawaii’s claims related to the additional capacity. Hu Honua Bioenergy, LLC (Hu Honua). In May 2012, Hawaii Electric Light signed a PPA, which the PUC approved in December 2013, with Hu Honua for 21.5 MW of renewable, dispatchable firm capacity fueled by locally grown biomass from a facility on the island of Hawaii. Under the terms of the PPA, the Hu Honua plant was scheduled to be in service in 2016. However, Hu Honua encountered construction and litigation delays, which resulted in 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, which becomes effective once the PUC’s order is final and non-appealable. In August 2017, the PUC’s approval was appealed by a third party. On May 10, 2019, the Hawaii Supreme Court issued a decision remanding the matter to the PUC for further proceedings consistent with the court’s decision which must include express consideration of Green House Gas emissions that would result from approving the PPA, whether the cost of energy under the PPA is reasonable in light of the potential for GHG emissions, and whether the terms of the PPA are prudent and in the public interest, in light of its potential hidden and long-term consequences. On June 20, 2019, the PUC issued an order reopening the docket for further proceedings. On September 29, 2019, the PUC issued an order setting the procedural schedule for the matter and on December 20, 2019, issued an order modifying the procedural schedule. Pre-hearing matters will be conducted through March 6, 2020. Thereafter, the PUC will set the date for an evidentiary hearing and post-hearing briefing. Hu Honua expected to complete construction of the plant in the fourth quarter of 2019, but has been delayed. 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. 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 achieve future cost savings consistent with a minimum of $246 million in ERP/EAM project-related benefits to be delivered to customers over the system’s 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% . The ERP/EAM Implementation Project went live in October 2018. In the Hawaiian Electric 2017 rate case, a settlement agreement approved by the PUC included authorization for the deferred project costs to accrue a return at 1.75% after the project went into service and until the deferred project costs are included in rate base, and for amortization of the deferred costs to not begin until the amortization expense is incorporated in rates and the unamortized deferred project costs are included in rate base. As of December 31, 2019, the total deferred project costs and accrued carrying costs after the project went into service amounted to $59.3 million. In February 2019, the PUC approved a methodology for passing the future cost saving benefits of the new ERP/EAM system to customers developed by the Utilities in collaboration with the Consumer Advocate. The Utilities filed a benefits clarification document on June 10, 2019, reflecting $150 million in future net O&M expense reductions and cost avoidance, and $96 million in capital cost reductions and tax savings over the 12 -year service life. To the extent the reduction in O&M expense relates to amounts reflected in electric rates, the Utilities would reduce future rates for such amounts. As of December 31, 2019 , the Utilities recorded a total of $2.4 million as a regulatory liability for amounts to be returned to customers for reduction in O&M expense included in rates. On September 13, 2019, the Utilities filed their Semi-Annual Enterprise System Benefits Report for the period January 1 through June 30, 2019. In October 2019, the PUC approved the Utilities and the Consumer Advocate’s Stipulated Performance Metrics and Tracking Mechanism. West Loch PV Project. In November 2019, Hawaiian Electric placed into service a 20 -MW (ac) utility-owned and operated renewable and dispatchable solar facility on property owned by the Department of the Navy. PUC orders resulted in a project cost cap of $67 million and a performance guarantee to provide energy at 9.56 cents/kWh or less to the system. Capital cost recovery under MPIR was approved by the PUC in December 2019 (See “Decoupling” section below for MPIR guidelines and cost recovery discussion.) Project costs incurred as of December 31, 2019 amounted to $51.4 million and generated $13.4 million and $14.0 million in federal and state nonrefundable tax credits, respectively. The tax credits are being deferred and amortized, starting in 2020, over PUC-approved amortization periods. 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 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 EPA has since identified environmental impacts in the subsurface soil at the Site.In cooperation with the Hawaii Department of Health and EPA, Maui Electric further investigated the Site and the Adjacent Parcel to determine the extent of impacts of polychlorinated biphenyls (PCBs), residual fuel oils and other subsurface contaminants. Maui Electric has a reserve balance of $2.7 million as of December 31, 2019 , representing the probable and reasonably estimable undiscounted cost for remediation of the Site and the Adjacent Parcel; however, final costs of remediation will depend on cleanup approach implemented. 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 the costs of investigation and cleanup of PCBs contamination in sediment in the area offshore of the Waiau Power Plant as part of the Pearl Harbor Superfund Site. Hawaiian Electric was also required by the EPA to assess potential sources and extent of PCB contamination onshore at Waiau Power Plant. As of December 31, 2019 , the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $ 4.2 million . The reserve balance represents the probable and reasonably estimable undiscounted cost for the onshore investigation and the remediation of PCB contamination in the offshore sediment. The final remediation costs will depend on the potential onshore source control requirements and actual offshore cleanup costs. Asset retirement obligations . AROs represent legal obligations associated with the retirement of certain tangible long-lived assets, are measured as the present value of the projected costs for the future retirement of specific assets and are recognized in the period in which the liability is incurred if a reasonable estimate of fair value can be made. The Utilities’ recognition of AROs have no impact on their earnings. The cost of the AROs is recovered over the life of the asset through depreciation. AROs recognized by the Utilities relate to legal obligations associated with the retirement of plant and equipment, including removal of asbestos and other hazardous materials. The Utilities recorded AROs related to 1) the removal of retired generating units, certain types of transformers and underground storage tanks; 2) the abandonment of fuel pipelines, underground injection and supply wells; and 3) the removal of equipment and restoration of leased land used in connection with Utility-owned renewable and dispatchable generation facilities. Changes to the ARO liability included in “Other liabilities” on Hawaiian Electric’s balance sheet were as follows: (in thousands) 2019 2018 Balance, January 1 $ 8,426 $ 6,035 Accretion expense 312 282 Liabilities incurred 1,594 1,058 Liabilities settled (8 ) (74 ) Revisions in estimated cash flows — 1,125 Balance, December 31 $ 10,324 $ 8,426 The Utilities have not recorded AROs for assets that are expected to operate indefinitely or where the Utilities cannot estimate a settlement date (or range of potential settlement dates). As such, ARO liabilities are not recorded for certain asset retirement activities, including various Utilities-owned generating facilities and certain electric transmission, distribution and telecommunications assets resulting from easements over property not owned by the Utilities. Regulatory proceedings. Decoupling . Decoupling is a regulatory model that is intended to provide the Utilities with financial stability and facilitate meeting the State of Hawaii’s goals to transition to a clean energy economy and achieve an aggressive renewable portfolio standard. The decoupling mechanism has the following major components: (1) monthly revenue balancing account (RBA) revenues or refunds for the difference between PUC-approved target revenues and recorded adjusted revenues, which delinks revenues from kilowatthour sales, (2) RAM revenues for escalation in certain O&M expenses and rate base changes, (3) MPIR component, (4) performance incentive mechanisms (PIMs), and (5) an earnings sharing mechanism, which would provide for a reduction of revenues between rate cases in the event the utility exceeds the return on average common equity (ROACE) allowed in its most recent rate case. Under the decoupling mechanism, triennial general rate cases are required. Rate adjustment mechanism . The RAM is based on the lesser of: a) an inflationary adjustment for certain O&M expenses and return on investment for certain rate base changes, or b) cumulative annual compounded increase in Gross Domestic Product Price Index applied to annualized target revenues (the RAM Cap). Annualized target revenues reset upon the issuance of an interim or final D&O in a rate case. Each of the Utilities’ RAM revenues was below its respective RAM Cap in 2019. The 2019 RAM also incorporated additional amortization of the regulatory liability associated with certain excess deferred taxes resulting from the Tax Act decrease in tax rates. The reduction in the RAM revenues will be counterbalanced by the lower income tax expense and, therefore, will have no net income impact. Major project interim recovery . On April 27, 2017, the PUC issued an order that provided guidelines for interim recovery of revenues to support major projects placed in service between general rate cases. Projects eligible for recovery through the MPIR adjustment mechanism are major projects (i.e., projects with capital expenditures net of customer contributions in excess of $2.5 million ), including, but not restricted to, renewable energy, energy efficiency, utility scale generation, grid modernization and smaller qualifying projects grouped into programs for review. The MPIR adjustment mechanism provides the opportunity to recover revenues for approved costs of eligible projects placed in service between general rate cases wherein cost recovery is limited by a revenue cap and is not provided by other effective recovery mechanisms. The request for PUC approval must include a business case, and all costs that are allowed to be recovered through the MPIR adjustment mechanism must be offset by any related benefits. The guidelines provide for accrual of revenues approved for recovery upon in-service date to be collected from customers through the annual RBA tariff. Capital projects that are not recovered through the MPIR would be included in the RAM and be subject to the RAM Cap, until the next rate case when the Utilities would request recovery in base rates. The PUC approved recovery of capital costs under the MPIR for Schofield Generating Station, which increased revenues in 2018 by $3.6 million and are being collected in customer bills since June 2019. In February 2019, Hawaiian Electric submitted an MPIR filing of $19.8 million for 2019 (which accrued effective January 1, 2019) that included the 2019 return on project amount (up to the capped amount) in rate base, depreciation and incremental O&M expenses, for collection from June 2020 through May 2021. The PUC approved the Utilities’ requests for MPIR of the cost of the Grid Modernization Strategy Phase 1 project and West Loch PV project in March and December 2019, respectively. On February 7, 2020, the Utilities submitted an MPIR filing totaling $24.2 million for the Schofield Generation Station ( $19.2 million ), West Loch PV project ( $4.5 million ) and Grid Modernization Strategy Phase 1 project ( $0.5 million for all three utilities) for the accrual of revenues effective January 1, 2020, that included the 2020 return on project amount (up to the capped amount) in rate base, depreciation and incremental O&M expenses, for collection from June 2021 through May 2022. Performance incentive mechanisms . The PUC has established the following PIMs. • Service Quality performance incentives are measured on a calendar-year basis. The PIM tariff requires the performance targets, deadbands and the amount of maximum financial incentives used to determine the PIM financial incentive levels for each of the PIMs to be re-determined upon issuance of an interim or final order in a general rate case for each utility. • Service Reliability Performance measured by System Average Interruption Duration and Frequency Indexes (penalties only). Target performance is based on each utility’s historical 10 -year average performance with a deadband of one standard deviation. The maximum penalty for each performance index is 20 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties of approximately $6.7 million - for both indices in total for the three utilities). • Call Center Performance measured by the percentage of calls answered within 30 seconds. Target performance is based on the annual average performance for each utility for the most recent 8 quarters with a deadband of 3% above and below the target. The maximum penalty or reward is 8 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties or rewards of approximately $1.3 million - in total for the three utilities). • In December 2018, the Utilities accrued $2.1 million in estimated penalties for service reliability, net of call center performance rewards, for 2018. As a result of a PUC order denying the exclusion of the impact of a specific project on the service reliability performance, in May 2019, Hawaiian Electric accrued an additional $1.3 million in service reliability penalties related to 2018. The net service quality performance penalties related to 2018 were reflected in the 2019 annual decoupling filing and will reduce customer rates in the period June 1, 2019 through May 31, 2020. • In December 2019, the Utilities accrued $ 0.3 million in estimated rewards for call center performance, net of service reliability penalties, for 2019. The net service quality performance rewards related to 2019 will be reflected in the 2020 annual decoupling filing and will increase customer rates in the period June 1, 2020 through May 31, 2021. • Procurement of low-cost variable renewable resources through the request for proposal process in 2018 measured by comparison of the procurement price to target prices. The incentive is a percentage of the savings determined by comparing procured price to a target of 11.5 cents per kilowatt-hour for renewable projects with storage capability and 9.5 cents per kilowatt-hour for energy-only renewable projects. For PPAs filed by December 31, 2018 and subsequently approved by the PUC, the incentive is 20% of the savings, with a cap of $3.5 million for the three utilities in total. For PPAs filed in January, February, and March 2019 and subsequently approved by the PUC, scaled incentives are 15% , 10% and 5% , respectively, of the savings for PPAs, with a cap of $3 million for the three utilities in total. There are no penalties. On March 25, 2019, the PUC approved six contracts, which were filed by December 31, 2018 and qualified for incentives. A seventh contract, which was filed in February 2019 and approved in August 2019, also qualified for incentives. Half of the incentive is earned upon PUC approval of the contract and the other half is eligible to be earned in the year following the in-service date of the projects. The Utilities accrued $1.7 million in incentives in March 2019, which were reflected in the 2019 annual decoupling filing and will be recovered in rates in the period June 1, 2019 through May 31, 2020. On October 9, 2019, the PUC issued an order establishing PIMs for the Utilities with regards to the Variable Renewable Dispatchable Generation and Energy Storage requests for proposals (RFPs) as well as the Delivery of Grid Services via Customer-sited Distributed Energy Resources RFPs, that were issued on August 22, 2019 for Oahu, Maui and Hawaii island. The order establishes pricing thresholds, timelines to complete contracting, and other performance criteria for the performance incentive eligibility. The PIMs provide incentives only without penalties. The earliest the Utilities would be eligible for a PIM pursuant to this order is upon PUC approval of executed contracts resulting from the Phase 2 RFPs. The order requires contracts under the Grid Service RFP be filed for approval by May 2020, and by September 2020 under the Renewable RFPs. There is no set time period for approval. The Utilities filed a motion for reconsideration and/or clarification regarding the order on October 21, 2019, relating to certain design aspects and eligibility criteria for the PIMs. Annual decoupling filings . The net annual incremental amounts approved to be collected (refunded) from June 1, 2019 through May 31, 2020 are as follows: (in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Total 2019 Annual incremental RAM adjus |
Bank segment (HEI only)
Bank segment (HEI only) | 12 Months Ended |
Dec. 31, 2019 | |
Bank Segment Disclosure [Abstract] | |
Bank segment (HEI only) | Note 4 · Bank segment (HEI only) Selected financial information American Savings Bank, F.S.B. Statements of Income and Comprehensive Income Data Years ended December 31 2019 2018 2017 (in thousands) Interest and dividend income Interest and fees on loans $ 233,632 $ 220,463 $ 207,255 Interest and dividends on investment securities 32,922 37,762 28,823 Total interest and dividend income 266,554 258,225 236,078 Interest expense Interest on deposit liabilities 16,830 13,991 9,660 Interest on other borrowings 1,610 1,548 2,496 Total interest expense 18,440 15,539 12,156 Net interest income 248,114 242,686 223,922 Provision for loan losses 23,480 14,745 10,901 Net interest income after provision for loan losses 224,634 227,941 213,021 Noninterest income Fees from other financial services 19,275 18,937 22,796 Fee income on deposit liabilities 20,877 21,311 22,204 Fee income on other financial products 6,507 7,052 7,205 Bank-owned life insurance 7,687 5,057 5,539 Mortgage banking income 4,943 1,493 2,201 Gain on sale of real estate 10,762 — — Gains on sale of investment securities, net 653 — — Other income, net 2,074 2,200 1,617 Total noninterest income 72,778 56,050 61,562 Noninterest expense Compensation and employee benefits 103,009 98,387 94,931 Occupancy 21,272 17,073 16,699 Data processing 15,306 14,268 13,280 Services 10,239 10,847 10,994 Equipment 8,760 7,186 7,232 Office supplies, printing and postage 5,512 6,134 6,182 Marketing 4,490 3,567 3,501 FDIC insurance 1,204 2,713 2,904 Other expense 15,586 17,238 20,144 Total noninterest expense 185,378 177,413 175,867 Income before income taxes 112,034 106,578 98,716 Income taxes 23,061 24,069 31,719 Net income 88,973 82,509 66,997 Other comprehensive income (loss), net of taxes 29,406 (7,119 ) (3,139 ) Comprehensive income $ 118,379 $ 75,390 $ 63,858 Reconciliation to amounts per HEI Consolidated Statements of Income*: Years ended December 31 2019 2018 2017 (in thousands) Interest and dividend income $ 266,554 $ 258,225 $ 236,078 Noninterest income 72,778 56,050 61,562 Less: Gain on sale of real estate (10,762 ) — — *Revenues-Bank 328,570 314,275 297,640 Total interest expense 18,440 15,539 12,156 Provision for loan losses 23,480 14,745 10,901 Noninterest expense 185,378 177,413 175,867 Less: Retirement defined benefits credit (expense)—other than service costs 472 (1,657 ) (820 ) Add: Gain on sale of real estate (10,762 ) — — *Expenses-Bank 217,008 206,040 198,104 *Operating income-Bank 111,562 108,235 99,536 Add back: Retirement defined benefits expense (credit)—other than service costs (472 ) 1,657 820 Income before income taxes $ 112,034 $ 106,578 $ 98,716 Balance Sheets Data December 31 2019 2018 (in thousands) Assets Cash and due from banks $ 129,770 $ 122,059 Interest-bearing deposits 48,628 4,225 Investment securities Available-for-sale, at fair value 1,232,826 1,388,533 Held-to-maturity, at amortized cost (fair value of $143,467 and $142,057 at December 31, 2019 and 2018, respectively) 139,451 141,875 Stock in Federal Home Loan Bank, at cost 8,434 9,958 Loans held for investment 5,121,176 4,843,021 Allowance for loan losses (53,355 ) (52,119 ) Net loans 5,067,821 4,790,902 Loans held for sale, at lower of cost or fair value 12,286 1,805 Other 511,611 486,347 Goodwill 82,190 82,190 Total assets $ 7,233,017 $ 7,027,894 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 1,909,682 $ 1,800,727 Deposit liabilities–interest-bearing 4,362,220 4,358,125 Other borrowings 115,110 110,040 Other 146,954 124,613 Total liabilities 6,533,966 6,393,505 Commitments and contingencies Common stock 1 1 Additional paid in capital 349,453 347,170 Retained earnings 358,259 325,286 Accumulated other comprehensive loss, net of tax benefits Net unrealized gains (losses) on securities $ 2,481 $ (24,423 ) Retirement benefit plans (11,143 ) (8,662 ) (13,645 ) (38,068 ) Total shareholder’s equity 699,051 634,389 Total liabilities and shareholder’s equity $ 7,233,017 $ 7,027,894 December 31 2019 2018 (in thousands) Other assets Bank-owned life insurance $ 157,465 $ 151,172 Premises and equipment, net 204,449 214,415 Accrued interest receivable 19,365 20,140 Mortgage servicing rights 9,101 8,062 Low-income housing investments 66,302 67,626 Real estate acquired in settlement of loans, net — 406 Other 54,929 24,526 $ 511,611 $ 486,347 Other liabilities Accrued expenses $ 45,822 $ 54,084 Federal and state income taxes payable 14,996 2,012 Cashier’s checks 23,647 26,906 Advance payments by borrowers 10,486 10,183 Other 52,003 31,428 $ 146,954 $ 124,613 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. The decrease in premises and equipment, net was due to the sale of two building facilities. Investment securities. The major components of investment securities were as follows: Gross unrealized losses Gross unrealized gains Gross unrealized Estimated fair value Less than 12 months 12 months or longer (dollars in thousands) Amortized cost Number of issues Fair value Amount Number of issues Fair value Amount December 31, 2019 Available-for-sale U.S. Treasury and federal agency obligations $ 117,255 $ 652 $ (120 ) $ 117,787 2 $ 4,110 $ (11 ) 3 $ 27,637 $ (109 ) Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,024,892 6,000 (4,507 ) 1,026,385 19 152,071 (819 ) 75 318,020 (3,688 ) Corporate bonds 58,694 1,363 — 60,057 — — — — — — Mortgage revenue bonds 28,597 — — 28,597 — — — — — — $ 1,229,438 $ 8,015 $ (4,627 ) $ 1,232,826 21 $ 156,181 $ (830 ) 78 $ 345,657 $ (3,797 ) Held-to-maturity Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ 139,451 $ 4,087 $ (71 ) $ 143,467 1 $ 12,986 $ (71 ) — $ — $ — $ 139,451 $ 4,087 $ (71 ) $ 143,467 1 $ 12,986 $ (71 ) — $ — $ — Gross unrealized losses Gross unrealized gains Gross unrealized Estimated fair value Less than 12 months 12 months or longer (dollars in thousands) Amortized cost Number of issues Fair value Amount Number of issues Fair value Amount December 31, 2018 Available-for-sale U.S. Treasury and federal agency obligations $ 156,694 $ 62 $ (2,407 ) $ 154,349 5 $ 25,882 $ (208 ) 19 $ 118,405 $ (2,199 ) Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,192,169 789 (31,542 ) 1,161,416 22 129,011 (1,330 ) 145 947,890 (30,212 ) Corporate bonds 49,398 103 (369 ) 49,132 6 23,175 (369 ) — — — Mortgage revenue bond 23,636 — — 23,636 — — — — — — $ 1,421,897 $ 954 $ (34,318 ) $ 1,388,533 33 $ 178,068 $ (1,907 ) 164 $ 1,066,295 $ (32,411 ) Held-to-maturity Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ 141,875 $ 1,446 $ (1,264 ) $ 142,057 3 $ 29,814 $ (400 ) 2 $ 31,505 $ (864 ) $ 141,875 $ 1,446 $ (1,264 ) $ 142,057 3 $ 29,814 $ (400 ) 2 $ 31,505 $ (864 ) ASB does not believe that the investment securities that were in an unrealized loss position as of December 31, 2019 , represent an OTTI. Total gross unrealized losses were primarily attributable to change in market conditions. On a quarterly basis the investment securities are evaluated for changes in financial condition of the issuer. Based upon ASB’s evaluation, all securities held within the investment portfolio continue to be investment grade by one or more agencies. The contractual cash flows of the U.S. Treasury, federal agency obligations and agency mortgage-backed 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 2019 , 2018 and 2017 . U.S. Treasury, federal agency obligations, corporate bonds, and mortgage revenue bonds have contractual terms to maturity. Mortgage-backed 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 investment securities were as follows: Amortized Fair December 31, 2019 Cost value (in thousands) Available-for-sale Due in one year or less $ 60,200 $ 60,249 Due after one year through five years 75,694 77,225 Due after five years through ten years 53,225 53,540 Due after ten years 15,427 15,427 204,546 206,441 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,024,892 1,026,385 Total available-for-sale securities $ 1,229,438 $ 1,232,826 Held-to-maturity Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ 139,451 $ 143,467 Total held-to-maturity securities $ 139,451 $ 143,467 The proceeds, gross gains and losses from sales of available-for-sale securities were as follows: Years ended December 31 2019 2018 2017 (in millions) Proceeds $ 19.8 $ — $ — Gross gains 0.7 — — Gross losses — — — Interest income from taxable and non-taxable investment securities were as follows: Years ended December 31 2019 2018 2017 (in thousands) Taxable $ 31,847 $ 37,153 $ 28,398 Non-taxable 1,074 609 425 $ 32,921 $ 37,762 $ 28,823 ASB pledged securities with a market value of approximately $546 million as of December 31, 2019 and 2018 , as collateral for public funds and other deposits, automated clearinghouse transactions with Bank of Hawaii, borrowing at the discount window of the Federal Reserve Bank of San Francisco, and deposits in ASB’s bankruptcy account with the Federal Reserve Bank of San Francisco. As of December 31, 2019 and 2018 , securities with a carrying value of $130 million and $92 million , respectively, were pledged as collateral for securities sold under agreements to repurchase. Stock in FHLB . As of December 31, 2019 and 2018 , ASB’s stock in FHLB was carried at cost ( $8.4 million and $10.0 million , respectively) because it can only be redeemed at par and it is a required investment based on measurements of ASB’s capital, assets and borrowing levels. Quarterly and as conditions warrant, ASB reviews its investment in the stock of the FHLB for impairment. ASB evaluated its investment in FHLB stock for OTTI as of December 31, 2019 , consistent with its accounting policy. ASB did not recognize an OTTI loss for 2019 , 2018 and 2017 based on its evaluation of the underlying investment. Future deterioration in the FHLB’s financial position and/or negative developments in any of the factors considered in ASB’s impairment evaluation may result in future impairment losses. Loans. The components of loans were summarized as follows: December 31 2019 2018 (in thousands) Real estate: Residential 1-4 family $ 2,178,135 $ 2,143,397 Commercial real estate 824,830 748,398 Home equity line of credit 1,092,125 978,237 Residential land 14,704 13,138 Commercial construction 70,605 92,264 Residential construction 11,670 14,307 Total real estate 4,192,069 3,989,741 Commercial 670,674 587,891 Consumer 257,921 266,002 Total loans 5,120,664 4,843,634 Less: Deferred fees and discounts 512 (613 ) Allowance for loan losses (53,355 ) (52,119 ) Total loans, net $ 5,067,821 $ 4,790,902 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 property purchases, the loan-to-value ratio may not exceed 75% of the lower of the appraised value or purchase price at origination. ASB services real estate loans for investors (principal balance of $1.3 billion , $ 1.2 billion and $ 1.2 billion as of December 31, 2019 , 2018 and 2017 , respectively), which are not included in the accompanying balance sheets data. ASB reports fees earned for servicing such loans as income when the related mortgage loan payments are collected and charges loan servicing cost to expense as incurred. As of December 31, 2019 and 2018 , ASB had pledged loans with an amortized cost of approximately $2.9 billion and $ 2.7 billion , respectively, as collateral to secure advances from the FHLB. As of December 31, 2019 and 2018 , the aggregate amount of loans to directors and executive officers of ASB and its affiliates and any related interests (as defined in Federal Reserve Board (FRB) Regulation O) of such individuals, was $24.1 million and $24.0 million , respectively. As of December 31, 2019 and 2018 , $18.0 million and $18.3 million of the loan balances, respectively, were to related interests of individuals who are directors of ASB. All such loans were made at ASB’s normal credit terms. Allowance for loan losses. As discussed in Note 1 , ASB must maintain an allowance for loan losses that is adequate to absorb estimated probable credit losses associated with its loan portfolio. The allowance for loan losses (balances and changes) and financing receivables were as follows: (in thousands) Residential 1-4 family Commercial Home equity Residential land Commercial construction Residential construction Commercial Consumer Total December 31, 2019 Allowance for loan losses: Beginning balance $ 1,976 $ 14,505 $ 6,371 $ 479 $ 2,790 $ 4 $ 9,225 $ 16,769 $ 52,119 Charge-offs (26 ) — (144 ) (4 ) — — (6,811 ) (21,677 ) (28,662 ) Recoveries 854 — 17 229 — — 2,351 2,967 6,418 Provision (424 ) 548 678 (255 ) (693 ) (1 ) 5,480 18,147 23,480 Ending balance $ 2,380 $ 15,053 $ 6,922 $ 449 $ 2,097 $ 3 $ 10,245 $ 16,206 $ 53,355 Ending balance: individually evaluated for impairment $ 898 $ 2 $ 322 $ — $ — $ — $ 1,015 $ 454 $ 2,691 Ending balance: collectively evaluated for impairment $ 1,482 $ 15,051 $ 6,600 $ 449 $ 2,097 $ 3 $ 9,230 $ 15,752 $ 50,664 Financing Receivables: Ending balance $ 2,178,135 $ 824,830 $ 1,092,125 $ 14,704 $ 70,605 $ 11,670 $ 670,674 $ 257,921 $ 5,120,664 Ending balance: individually evaluated for impairment $ 15,600 $ 1,048 $ 12,073 $ 3,091 $ — $ — $ 8,418 $ 507 $ 40,737 Ending balance: collectively evaluated for impairment $ 2,162,535 $ 823,782 $ 1,080,052 $ 11,613 $ 70,605 $ 11,670 $ 662,256 $ 257,414 $ 5,079,927 December 31, 2018 Allowance for loan losses: Beginning balance $ 2,902 $ 15,796 $ 7,522 $ 896 $ 4,671 $ 12 $ 10,851 $ 10,987 $ 53,637 Charge-offs (128 ) — (353 ) (18 ) — — (2,722 ) (17,296 ) (20,517 ) Recoveries 74 — 257 179 — — 2,136 1,608 4,254 Provision (872 ) (1,291 ) (1,055 ) (578 ) (1,881 ) (8 ) (1,040 ) 21,470 14,745 Ending balance $ 1,976 $ 14,505 $ 6,371 $ 479 $ 2,790 $ 4 $ 9,225 $ 16,769 $ 52,119 Ending balance: individually evaluated for impairment $ 876 $ 7 $ 701 $ 6 $ — $ — $ 628 $ 4 $ 2,222 Ending balance: collectively evaluated for impairment $ 1,100 $ 14,498 $ 5,670 $ 473 $ 2,790 $ 4 $ 8,597 $ 16,765 $ 49,897 Financing Receivables: Ending balance $ 2,143,397 $ 748,398 $ 978,237 $ 13,138 $ 92,264 $ 14,307 $ 587,891 $ 266,002 $ 4,843,634 Ending balance: individually evaluated for impairment $ 16,494 $ 915 $ 14,800 $ 2,059 $ — $ — $ 5,340 $ 89 $ 39,697 Ending balance: collectively evaluated for impairment $ 2,126,903 $ 747,483 $ 963,437 $ 11,079 $ 92,264 $ 14,307 $ 582,551 $ 265,913 $ 4,803,937 December 31, 2017 Allowance for loan losses: Beginning balance $ 2,873 $ 16,004 $ 5,039 $ 1,738 $ 6,449 $ 12 $ 16,618 $ 6,800 $ 55,533 Charge-offs (826 ) — (14 ) (210 ) — — (4,006 ) (11,757 ) (16,813 ) Recoveries 157 — 308 482 — — 1,852 1,217 4,016 Provision 698 (208 ) 2,189 (1,114 ) (1,778 ) — (3,613 ) 14,727 10,901 Ending balance $ 2,902 $ 15,796 $ 7,522 $ 896 $ 4,671 $ 12 $ 10,851 $ 10,987 $ 53,637 Ending balance: individually evaluated for impairment $ 1,248 $ 65 $ 647 $ 47 $ — $ — $ 694 $ 29 $ 2,730 Ending balance: collectively evaluated for impairment $ 1,654 $ 15,731 $ 6,875 $ 849 $ 4,671 $ 12 $ 10,157 $ 10,958 $ 50,907 Financing Receivables: Ending balance $ 2,118,047 $ 733,106 $ 913,052 $ 15,797 $ 108,273 $ 14,910 $ 544,828 $ 223,564 $ 4,671,577 Ending balance: individually evaluated for impairment $ 18,284 $ 1,016 $ 8,188 $ 1,265 $ — $ — $ 4,574 $ 66 $ 33,393 Ending balance: collectively evaluated for impairment $ 2,099,763 $ 732,090 $ 904,864 $ 14,532 $ 108,273 $ 14,910 $ 540,254 $ 223,498 $ 4,638,184 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 commercial and commercial real estate 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 ASB 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: December 31 2019 2018 (in thousands) Commercial real estate Commercial construction Commercial Total Commercial real estate Commercial construction Commercial Total Grade: Pass $ 756,747 $ 68,316 $ 621,657 $ 1,446,720 $ 658,288 $ 89,974 $ 547,640 $ 1,295,902 Special mention 4,451 — 29,921 34,372 32,871 — 11,598 44,469 Substandard 63,632 2,289 19,096 85,017 57,239 2,290 28,653 88,182 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 824,830 $ 70,605 $ 670,674 $ 1,566,109 $ 748,398 $ 92,264 $ 587,891 $ 1,428,553 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 December 31, 2019 Real estate: Residential 1-4 family $ 2,588 $ 290 $ 1,808 $ 4,686 $ 2,173,449 $ 2,178,135 $ — Commercial real estate — — — — 824,830 824,830 — Home equity line of credit 813 — 2,117 2,930 1,089,195 1,092,125 — Residential land — — 25 25 14,679 14,704 — Commercial construction — — — — 70,605 70,605 — Residential construction — — — — 11,670 11,670 — Commercial 1,077 311 172 1,560 669,114 670,674 — Consumer 4,386 3,257 2,907 10,550 247,371 257,921 — Total loans $ 8,864 $ 3,858 $ 7,029 $ 19,751 $ 5,100,913 $ 5,120,664 $ — December 31, 2018 Real estate: Residential 1-4 family $ 3,757 $ 2,773 $ 2,339 $ 8,869 $ 2,134,528 $ 2,143,397 $ — Commercial real estate — — — — 748,398 748,398 — Home equity line of credit 1,139 681 2,720 4,540 973,697 978,237 — Residential land 9 — 319 328 12,810 13,138 — Commercial construction — — — — 92,264 92,264 — Residential construction — — — — 14,307 14,307 — Commercial 315 281 548 1,144 586,747 587,891 — Consumer 5,220 3,166 2,702 11,088 254,914 266,002 — Total loans $ 10,440 $ 6,901 $ 8,628 $ 25,969 $ 4,817,665 $ 4,843,634 $ — The credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due, and TDR loans was as follows: Nonaccrual loans Accruing loans 90 days or more past due Troubled debt restructured loans not included in nonaccrual loans December 31 2019 2018 2019 2018 2019 2018 (in thousands) Real estate: Residential 1-4 family $ 11,395 $ 12,037 $ — $ — $ 9,869 $ 10,194 Commercial real estate 195 — — — 853 915 Home equity line of credit 6,638 6,348 — — 10,376 11,597 Residential land 448 436 — — 2,644 1,622 Commercial construction — — — — — — Residential construction — — — — — — Commercial 5,947 4,278 — — 2,614 1,527 Consumer 5,113 4,196 — — 57 62 Total $ 29,736 $ 27,295 $ — $ — $ 26,413 $ 25,917 The total carrying amount and the total unpaid principal balance of impaired loans were as follows: December 31 2019 2018 (in thousands) Recorded investment Unpaid principal balance Related allowance Recorded investment Unpaid principal balance Related allowance With no related allowance recorded Real estate: Residential 1-4 family $ 6,817 $ 7,207 $ — $ 7,822 $ 8,333 $ — Commercial real estate 195 200 — — — — Home equity line of credit 1,984 2,135 — 2,743 3,004 — Residential land 3,091 3,294 — 2,030 2,228 — Commercial construction — — — — — — Residential construction — — — — — — Commercial 1,948 2,285 — 3,722 4,775 — Consumer 2 2 — 32 32 — 14,037 15,123 — 16,349 18,372 — With an allowance recorded Real estate: Residential 1-4 family 8,783 8,835 898 8,672 8,875 876 Commercial real estate 853 853 2 915 915 7 Home equity line of credit 10,089 10,099 322 12,057 12,086 701 Residential land — — — 29 29 6 Commercial construction — — — — — — Residential construction — — — — — — Commercial 6,470 6,470 1,015 1,618 1,618 628 Consumer 505 505 454 57 57 4 26,700 26,762 2,691 23,348 23,580 2,222 Total Real estate: Residential 1-4 family 15,600 16,042 898 16,494 17,208 876 Commercial real estate 1,048 1,053 2 915 915 7 Home equity line of credit 12,073 12,234 322 14,800 15,090 701 Residential land 3,091 3,294 — 2,059 2,257 6 Commercial construction — — — — — — Residential construction — — — — — — Commercial 8,418 8,755 1,015 5,340 6,393 628 Consumer 507 507 454 89 89 4 $ 40,737 $ 41,885 $ 2,691 $ 39,697 $ 41,952 $ 2,222 ASB’s average recorded investment of, and interest income recognized from, impaired loans were as follows: December 31 2019 2018 2017 (in thousands) Average Interest Average Interest Average Interest With no related allowance recorded Real estate: Residential 1-4 family $ 8,169 $ 907 $ 8,595 $ 445 $ 9,440 $ 316 Commercial real estate 16 — — — 91 11 Home equity line of credit 2,020 84 2,206 75 1,976 101 Residential land 2,662 129 1,532 40 1,094 117 Commercial construction — — — — — — Residential construction — — — — — — Commercial 4,534 276 3,275 28 2,776 54 Consumer 21 4 22 — 1 — 17,422 1,400 15,630 588 15,378 599 With an allowance recorded Real estate: Residential 1-4 family 8,390 359 8,878 363 9,818 493 Commercial real estate 886 37 982 42 1,241 54 Home equity line of credit 11,319 567 10,617 440 5,045 251 Residential land 27 — 37 3 1,308 97 Commercial construction — — — — — — Residential construction — — — — — — Commercial 6,990 132 1,789 122 3,691 723 Consumer 360 24 57 4 57 3 27,972 1,119 22,360 974 21,160 1,621 Total Real estate: Residential 1-4 family 16,559 1,266 17,473 808 19,258 809 Commercial real estate 902 37 982 42 1,332 65 Home equity line of credit 13,339 651 12,823 515 7,021 352 Residential land 2,689 129 1,569 43 2,402 214 Commercial construction — — — — — — Residential construction — — — — — — Commercial 11,524 408 5,064 150 6,467 777 Consumer 381 28 79 4 58 3 $ 45,394 $ 2,519 $ 37,990 $ 1,562 $ 36,538 $ 2,220 * Since loan was classified as impaired. Troubled debt restructurings. A loan modification is deemed to be a TDR when the borrower is determined to be experiencing financial difficulties and ASB grants a concession it would not otherwise consider. When a borrower experiencing financial difficulty fails to make a required payment on a loan or is in imminent default, ASB takes a number of steps to improve the collectability of the loan and maximize the likelihood of full repayment. At times, ASB may modify or restructure a loan to help a distressed borrower improve its financial position to eventually be able to fully repay the loan, provided the borrower has demonstrated both the willingness and the ability to fulfill the modified terms. TDR loans are considered an alternative to foreclosure or liquidation with the goal of minimizing losses to ASB and maximizing recovery. ASB may consider various types of concessions in granting a TDR including maturity date extensions, extended amortization of principal, temporary deferral of principal payments, and temporary interest rate reductions. ASB rarely grants principal forgiveness in its TDR modifications. Residential loan modifications generally involve interest rate reduction, extending the amortization period, or capitalizing certain delinquent amounts owed not to exceed the original loan balance. Land loans at origination are typically structured as a three -year term, interest-only monthly payment with a balloon payment due at maturity. Land loan TDR modifications typically involve extending the maturity date up to five 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 2019 , 2018 , and 2017 were as follows: Years ended December 31, 2019 December 31, 2018 (dollars in thousands) Number of contracts Outstanding (as of period end) 1 Related allowance (as of period end) Number of contracts Outstanding (as of period end) 1 Related allowance (as of period end) Real estate: Residential 1-4 family 11 $ 1,770 $ 190 3 $ 566 $ 26 Commercial real estate — — — — — — Home equity line of credit 3 442 73 53 6,659 578 Residential land 3 1,086 — 2 1,338 — Commercial construction — — — — — — Residential construction — — — — — — Commercial 8 5,523 417 12 2,165 211 Consumer — — — — — — 25 $ 8,821 $ 680 70 $ 10,728 $ 815 Year ended December 31, 2017 (dollars in thousands) Number of contracts Outstanding (as of period end) 1 Related allowance (as of period end) Real estate: Residential 1-4 family 3 $ 469 $ 65 Commercial real estate — — — Home equity line of credit 44 2,791 545 Residential land 1 92 — Commercial construction — — — Residential construction — — — Commercial 8 525 250 Consumer 1 58 29 57 $ 3,935 $ 889 1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included. Loans modified in TDRs that experienced a payment default of 90 days or more in 2019 , 2018 , and 2017 and for which the payment default occurred within one year of the modification, were as follows: Years ended December 31 2019 2018 2017 (dollars in thousands) Number of contracts Recorded investment Number of contracts Recorded investment Number of Recorded Troubled debt restructurings that subsequently defaulted Real estate: Residential 1-4 family — $ — — $ — 1 $ 222 Commercial real estate — — — — — — Home equity line of credit — — 1 81 — — Residential land — — — — — — Commercial construction — — — — — — Residential construction — — — — — — Commercial — — 1 246 — — Consumer — — — — — — — $ — 2 $ 327 1 $ 222 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 were nil at December 31, 2019 and 2018 . The Company had $3.5 million and $4.2 million of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure at December 31, 2019 and 2018 , respectively. Mortgage servicing rights (MSRs). 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 $277.1 million , $112.2 million and $128.0 million of proceeds from the sale of residential mortgages in 2019 , 2018 , and 2017 , respectively, and recognized gains on such sales of $4.9 million , $1.5 million , and $2.2 million in 2019 , 2018 , and 2017 , respectively. Repurchased mortgage loans were nil for 2019 , 2018 and 2017 . The repurchase reserve was $0.1 million as of December 31, 2019, 2018 and 2017. Mortgage servicing fees, a component of other income, net, were $3.0 million for the years ended December 31, 2019 , 2018 , and 2017 . Changes in the carrying value of MSRs were as follows: (in thousands) Gross 1 Accumulated amortization 1 Valuation allowance Net December 31, 2019 $ 21,543 $ (12,442 ) $ — $ 9,101 December 31, 2018 $ 18,556 $ (10,494 ) $ — $ 8,062 1 Reflects impact of loans paid in full. Changes related to MSRs were as follows: (in thousands) 2019 2018 2017 Mortgage servicing rights Balance, January 1 $ 8,062 $ 8,639 $ 9,373 Amount capitalized 2,987 1,045 1,239 Amortization (1,948 ) (1,622 ) (1,973 ) Sale of mortgage servicing rights — — — Other-than-temporary impairment — — — Carrying amount before valuation allowance, December 31 9,101 8,062 8,639 Valuation allowance for mortgage servicing rights Balance, January 1 — — — Provision (recovery) — — — Other-than-temporary impairment — — — Balance, December 31 — — — Net carrying value of mortgage servicing rights $ 9,101 $ 8,062 $ 8,639 The estimated aggregate amortization expenses of MSRs for 2020 , 2021 , 2022 , 2023 and 2024 are $1.5 million , $1.2 million , $1.1 million , $0.9 million and $0.8 million , respectively. ASB capitalizes MSRs acquired upon the sale of mortgage loans with servicing rights retained. On a monthly basis, ASB compares the net carrying value of the MSRs to its fair value to determine if there are any changes to the valuation allowance and/or other-than-temporary impairment for the MSRs. ASB uses a present value cash flow model 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 MSRs used in the impairment analysis were as follows: December 31 2019 2018 (dollars in thousands) Unpaid principal balance $ 1,276,437 $ 1,188,514 Weighted average note rate 3.96 % 3.98 % Weighted average discount rate 9.3 % 10.0 % Weighted average prepayment speed 11.4 % 6.5 % The sensitivity analysis of fair value of MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key |
Short-term borrowings
Short-term borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Short-term Debt [Abstract] | |
Short-term borrowings | Note 5 · Short-term borrowings Commercial paper and bank term loan. As of December 31, 2019 and 2018 , HEI had $97 million and $49 million of commercial paper outstanding, with a weighted-average interest rate of 2.3% and 2.9% , respectively. As of December 31, 2019 and 2018 , Hawaiian Electric had $39 million of and no commercial paper outstanding, respectively. Additionally, on December 23, 2019, Hawaiian Electric entered into a 364 -day, $100 million term loan credit agreement that matures on December 21, 2020. The term loan credit agreement includes substantially the same financial covenant and customary representations and warranties, affirmative and negative covenants, and events of default (the occurrence of which may result in the loan outstanding becoming immediately due and payable) consistent with those in Hawaiian Electric’s existing, amended revolving unsecured credit agreement. Hawaiian Electric drew the first $50 million on December 23, 2019 and has until March 23, 2020, to draw the remaining $50 million , if needed. The weighted-average interest rate of Hawaiian Electric’s outstanding commercial paper and bank term loan as of December 31, 2019 was 2.3% . As of December 31, 2019 and 2018 , HEI had three letters of credit outstanding in the aggregate amount of $6 million and $ 7 million , respectively, on behalf of Hamakua Energy. 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 Credit Facilities), effective July 3, 2017, to amend and restate their respective previously existing revolving unsecured credit agreements. The $150 million HEI Facility and $200 million Hawaiian Electric Facility both terminate on June 30, 2022. As of December 31, 2019 and December 31, 2018 , no amounts were outstanding under the Credit Facilities. None of the facilities are collateralized. Under the Credit Facilities, draws would generally bear interest, based on each company’s respective current long-term credit ratings, at the “Adjusted LIBO Rate,” as defined in the agreement, plus 1.375% and annual fees on undrawn commitments, excluding swingline borrowings, of 20 basis points. The Credit Facilities contain provisions for pricing adjustments in the event of a long-term ratings change based on the respective Credit Facilities’ ratings-based pricing grid, which includes the ratings by Fitch, Moody’s and S&P. Certain modifications were made to incorporate some updated terms and conditions customary for facilities of this type. The Credit Facilities continue to contain customary conditions that must be met in order to draw on them, including compliance with covenants (such as covenants preventing HEI’s/Hawaiian Electric’s subsidiaries from entering into agreements that restrict the ability of the subsidiaries to pay dividends to, or to repay borrowings from, HEI/Hawaiian Electric; and a covenant in Hawaiian Electric’s facility restricting Hawaiian Electric’s ability, as well as the ability of any of its subsidiaries, to guarantee additional indebtedness of the subsidiaries if such additional debt would cause the subsidiary’s “Consolidated Subsidiary Funded Debt to Capitalization Ratio” to exceed 65% ). Under the HEI Facility, it is an event of default if HEI fails to maintain an unconsolidated “Capitalization Ratio” (funded debt) of 50% or less or if HEI no longer owns Hawaiian Electric or ASB. Under the Hawaiian Electric Facility, it is an event of default if Hawaiian Electric fails to maintain a “Consolidated Capitalization Ratio” (equity) of at least 35% , or if Hawaiian Electric is no longer owned by HEI. The Credit 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. |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term debt | Note 6 · Long-term debt December 31 2019 2018 (dollars in thousands) Long-term debt of Utilities, net of unamortized debt issuance costs 1 $ 1,497,667 $ 1,418,802 HEI 2.99% term loan, due 2022 150,000 150,000 HEI 5.67% senior notes, due 2021 50,000 50,000 HEI 3.99% senior notes, due 2023 50,000 50,000 HEI 4.58% senior notes, due 2025 50,000 50,000 HEI 4.72% senior notes, due 2028 100,000 100,000 Hamakua Energy 4.02% notes, due 2030, secured by real and personal property of Hamakua Energy, LLC 59,699 63,438 Mauo LIBOR + 1.375% loan, due 2022 9,349 — Less unamortized debt issuance costs (2,350 ) (2,599 ) $ 1,964,365 $ 1,879,641 1 See components of “Total long-term debt” and unamortized debt issuance costs in Hawaiian Electric and subsidiaries’ Consolidated Statements of Capitalization. As of December 31, 2019 , the aggregate principal payments required on the Company’s long-term debt for 2020 through 2024 are $102 million in 2020 , $54 million in 2021 , $213 million in 2022 , $154 million in 2023 and $5 million in 2024 . As of December 31, 2019 , the aggregate payments of principal required on the Utilities’ long-term debt for 2020 through 2024 are $96 million in 2020 , nil in 2021 , $52 million in 2022 , $100 million in 2023 and nil in 2024 . The HEI term loans and senior notes contain customary representation and warranties, affirmative and negative covenants and events of default (the occurrence of which may result in some or all of the notes then outstanding becoming immediately due and payable). The HEI term loans and senior notes also contain provisions requiring the maintenance by HEI of certain financial ratios generally consistent with those in HEI’s existing, amended revolving unsecured credit agreement. Upon a change of control or certain dispositions of assets (as defined in the Master Note Purchase Agreements dated March 24, 2011 and October 4, 2018), HEI is required to offer to prepay the senior notes. The Utilities’ senior notes contain customary representations and warranties, affirmative and negative covenants, and events of default (the occurrence of which may result in some or all of the notes of each and all of the utilities then outstanding becoming immediately due and payable) and provisions requiring the maintenance by Hawaiian Electric, and each of Hawaii Electric Light and Maui Electric, of certain financial ratios generally consistent with those in Hawaiian Electric’s existing, amended revolving unsecured credit agreement. Changes in long-term debt. Mauo . In June 2018, Mauo, LLC, an indirect subsidiary of Pacific Current, LLC, entered into an unsecured $50.5 million construction loan facility in connection with the construction of the solar-plus-storage PPA project. In October 2019, the loan was amended to extend the maturity date to March 31, 2022 and to revise certain other defined terms. The loan bears interest at LIBOR plus 1.375% . As of December 31, 2019 , $9 million was outstanding under the facility. The loan is guaranteed by HEI and contains restrictive covenants that are substantially the same as the financial covenants contained in HEI’s senior credit facility, as amended. Hawaiian Electric . On May 13, 2019, the Utilities issued, through a private placement pursuant to separate Note Purchase Agreements (the Note Purchase Agreements), the following unsecured notes bearing taxable interest (the Unsecured Notes): Series 2019A Aggregate principal amount $50 million Fixed coupon interest rate 4.21% Maturity date May 15, 2034 Principal amount by company: Hawaiian Electric $30 million Hawaii Electric Light $10 million Maui Electric $10 million The Unsecured Notes include substantially the same financial covenants and customary conditions as Hawaiian Electric’s credit agreement. Hawaiian Electric is also a party as guarantor under the Note Purchase Agreements entered into by Hawaii Electric Light and Maui Electric. The Unsecured Notes may be prepaid in whole or in part at any time at the prepayment price of the principal amount plus a “Make-Whole Amount,” as defined in the Note Purchase Agreements. On May 15, 2019, proceeds from the sale were applied to redeem the Utilities’ 2004 junior subordinated deferrable interest debentures at par value: 2004 Junior subordinated deferrable interest debentures redeemed Aggregate principal amount $51.5 million Fixed coupon interest rate 6.50% Maturity date May 15, 2034 Principal amount by company: Hawaiian Electric $31.5 million Hawaii Electric Light $10 million Maui Electric $10 million On July 18, 2019, the Department of Budget and Finance of the State of Hawaii (DBF) for the benefit of Hawaiian Electric and Hawaii Electric Light, issued, at par: Refunding Series 2019 Special Purpose Revenue Bonds Aggregate principal amount $150 million Fixed coupon interest rate 3.20% Maturity date July 1, 2039 DBF loaned the proceeds to: Hawaiian Electric $90 million Hawaii Electric Light $60 million On July 26, 2019, proceeds from the sale were applied to redeem at par, bonds previously issued by the DBF for the benefit of Hawaiian Electric and Hawaii Electric Light: Series 2009 Special Purpose Revenue Bonds Redeemed Aggregate principal amount $150 million Fixed coupon interest rate 6.50% Maturity date July 1, 2039 Principal amount by company: Hawaiian Electric $90 million Hawaii Electric Light $60 million On October 10, 2019, the DBF for the benefit of Hawaiian Electric, Hawaii Electric Light and Maui Electric, issued, at par: Series 2019 Special Purpose Revenue Bonds Aggregate principal amount $80 million Fixed coupon interest rate 3.50% Maturity date October 1, 2049 DBF loaned the proceeds to: Hawaiian Electric $70 million Hawaii Electric Light $2.5 million Maui Electric $7.5 million Proceeds from the Series 2019 Special Purpose Revenue Bonds will be used only to finance capital expenditures, including reimbursements to the Companies for previously incurred approved capital expenditures. The undrawn funds are deposited with a trustee and earn interest at market rates. As of December 31, 2019 , Hawaiian Electric and Hawaii Electric Light had $30.8 million and $0.1 million of undrawn funds remaining with the trustee, respectively. Maui Electric received all bond proceeds at closing and had no undrawn funds as of December 31, 2019 . Undrawn funds are included in restricted cash in the consolidated balance sheets. (See Note 1 ). On December 31, 2019 , Hawaiian Electric and Maui Electric wired approximately $84 million to pay off the Series 2012B senior note ( $62 million for Hawaiian Electric, $20 million for Maui Electric, and approximately $2 million |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' equity | Note 7 · Shareholders’ equity Reserved shares. As of December 31, 2019 , HEI had reserved a total of 18.5 million shares of common stock for future issuance under the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP), the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP), the HEI 2011 Nonemployee Director Stock Plan, the ASB 401(k) Plan and the 2010 Executive Incentive Plan. 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 (loss) and reclassifications, net of taxes (4,370 ) 454 2,544 (1,372 ) 454 (1,142 ) (688 ) Reclass of AOCI for tax rate reduction impact 1 (2,650 ) — (4,790 ) (7,440 ) — (209 ) (209 ) Balance, December 31, 2017 (14,951 ) — (26,990 ) (41,941 ) — (1,219 ) (1,219 ) Current period other comprehensive income (loss) and reclassifications, net of taxes (9,472 ) (436 ) 1,239 (8,669 ) — 1,318 1,318 Balance, December 31, 2018 (24,423 ) (436 ) (25,751 ) (50,610 ) — 99 99 Current period other comprehensive income (loss) and reclassifications, net of taxes 26,904 (1,177 ) 4,844 30,571 — (1,378 ) (1,378 ) Balance, December 31, 2019 $ 2,481 $ (1,613 ) $ (20,907 ) $ (20,039 ) $ — $ (1,279 ) $ (1,279 ) 1 The Company and the Utilities adopted ASU No. 2018-02 as of the beginning of the fourth quarter of 2017 and elected to reclassify the income tax effects of the Tax Act from AOCI to retained earnings. Other than this reclassification to retained earnings, the Company and the Utilities release the income tax effects in AOCI from AOCI when the specific AOCI items (e.g., on a security-by-security basis for ASB’s gains/losses on investment securities) are included in net income. Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Affected line item in the Statement of Income/Balance Sheet Years ended December 31 2019 2018 2017 (in thousands) HEI consolidated Net realized gains on securities included in net income $ (478 ) $ — $ — Revenues-bank (gains on sale of investment securities, net) Derivatives qualifying as cash flow hedges: Window forward contracts — — 454 Property, plant and equipment-electric utilities (2017) Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 10,107 21,015 15,737 See Note 10 for additional details Impact of D&Os of the PUC included in regulatory assets (16,177 ) 8,325 (78,724 ) See Note 10 for additional details Total reclassifications $ (6,548 ) $ 29,340 $ (62,533 ) Hawaiian Electric consolidated Derivatives qualifying as cash flow hedges Window forward contracts $ — $ — $ 454 Property, plant and equipment (2017) Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 9,550 19,012 14,477 See Note 10 for additional details Impact of D&Os of the PUC included in regulatory assets (16,177 ) 8,325 (78,724 ) See Note 10 for additional details Total reclassifications $ (6,627 ) $ 27,337 $ (63,793 ) |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 8 · Leases The Company adopted ASU No. 2016-02 and related amendments on January 1, 2019, and used the effective date as the date of initial application. The Company elected the practical expedient package under which the Company did not reassess its prior conclusions about whether any expired or existing contracts are or contain leases, whether there is a change in lease classification for any expired or existing leases under the new standard, or whether there were initial direct costs for any existing leases that would be treated differently under the new standard. The Company elected the short-term lease recognition exemption for all of its leases that qualify, and accordingly, does not recognize lease liabilities and ROU assets for all leases that have lease terms that are 12 months or less. The amounts related to short-term leases are not material. The Company elected the practical expedient to not separate lease and non-lease components for its real estate and equipment and fossil fuel and renewable energy PPAs . The Company elected the practical expedient to not assess all existing land easements that were not previously accounted for in accordance with ASC 840. The Company leases certain real estate and equipment for various terms under long-term operating lease agreements. The agreements expire at various dates through 2054 and provide for renewal options up to 10 years . The periods associated with the renewal options are excluded for the purpose of determining the lease term unless the exercise of the renewable option is reasonably certain. In the normal course of business, it is expected that many of these agreements will be replaced by similar agreements. Certain real estate leases require the Company to pay for operating expenses such as common area maintenance, real estate taxes and insurance, which are recognized as variable lease expense when incurred and are not included in the measurement of the lease liability. Additionally, the Utilities contract with independent power producers to supply energy under long-term power purchase agreements. Certain PPAs are treated as operating leases under the new standard because the Company elected the practical expedient package under which prior conclusions about lease identification were not reassessed. The fixed capacity payments under the PPAs are included in the lease liability, while the variable lease payments (e.g., payments based on kWh) are excluded from the lease liability. Several as-available PPAs have variable-only payment terms based on production. For PPAs with no minimum lease payments, the Utilities do not recognize any lease liabilities or ROU assets, and the related costs are reported as variable lease costs. In August 2019, Hawaiian Electric entered into a lease agreement for a total office space of approximately 195,000 square feet in downtown Honolulu to lower costs and bring together office workers currently in separate leased buildings. The lease consists of two different phases with commencement dates of January 2020 and January 2021, respectively, and is an operating lease for a term of 12 years with various options to extend up to 10 years . Annual base rent expense for each phase is approximately $1.9 million and $1.7 million , respectively, and the operating lease liability recorded upon commencement of the first phase of the lease was $21 million and the operating lease liability to be recorded upon commencement of the second phase is approximately $19 million . In addition to the annual base rent payments that are included in the lease liability, there are additional payments for operating expenses, which are recognized as variable lease cost when incurred. These payments are related to operating expenses, such as common area maintenance, various taxes and insurance. Under the terms of the lease, Hawaiian Electric is entitled to receive up to $5.0 million and $4.6 million in reimbursements for various office improvements for each phase, respectively. The amounts are to be included as a reduction to the initial measurement of the ROU asset on each respective commencement date, and will be subsequently adjusted if the actual reimbursements are different from the initial amounts previously recognized. The Utilities’ lease payments for each operating lease agreement were discounted using its estimated unsecured borrowing rates for the appropriate term, reduced for the estimated impact of collateral, which is a reduction of approximately 15 basis points. ASB’s lease payments for each operating lease agreement were discounted using Federal Home Loan Bank of Des Moines (FHLB) fixed rate advance rates, which are collateralized, for the appropriate term. The FHLB is ASB’s primary wholesale funding source and can provide collateralized borrowing rates for various terms starting at overnight borrowings to 30 -year borrowing terms. Amounts related to the Company’s total lease cost and cash flows arising from lease transaction are as follows: HEI consolidated Hawaiian Electric consolidated Year ended December 31, 2019 Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total (dollars in thousands) Operating lease cost $ 10,265 $ 63,319 $ 73,584 $ 4,955 $ 63,319 $ 68,274 Variable lease cost 13,034 192,138 205,172 10,272 192,138 202,410 Total lease cost $ 23,299 $ 255,457 $ 278,756 $ 15,227 $ 255,457 $ 270,684 Other information Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases $ 10,447 $ 62,594 $ 73,041 $ 5,768 $ 62,594 $ 68,362 Weighted-average remaining lease term—operating leases (in years) 6.5 2.8 3.5 4.5 2.8 2.9 Weighted-average discount rate—operating leases 3.50 % 4.08 % 3.96 % 4.11 % 4.08 % 4.08 % The following table summarizes the maturity of our operating lease liabilities as of December 31, 2019 : HEI consolidated Hawaiian Electric consolidated (in millions) Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total 2020 $ 12 $ 63 $ 75 $ 7 $ 63 $ 70 2021 10 63 73 5 63 68 2022 6 42 48 3 42 45 2023 5 — 5 2 — 2 2024 4 — 4 1 — 1 Thereafter 9 — 9 2 — 2 Total lease payments 46 168 214 20 168 188 Less: Imputed interest (5 ) (9 ) (14 ) (2 ) (9 ) (11 ) Total present value of lease payments 1 $ 41 $ 159 $ 200 $ 18 $ 159 $ 177 1 The fixed capacity payment related to the existing PPA with PGV, which will expire on December 31, 2027, is not included as a lease liability as of December 31, 2019 as the facility has been offline since May 2018 due to lava flow on Hawaii Island. The annual capacity payment is approximately $7 million . The lease liability will be remeasured when PGV is back in service. The future minimum lease obligations under operating leases in effect as of December 31, 2018, having a term in excess of one year as determined prior to the adoption of ASC 842 are as follows: HEI consolidated Hawaiian Electric consolidated (in millions) Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total 2019 $ 11 $ 63 $ 74 $ 6 $ 63 $ 69 2020 9 63 72 6 63 69 2021 8 63 71 5 63 68 2022 5 42 47 2 42 44 2023 4 — 4 2 — 2 Thereafter 12 — 12 3 — 3 Total lease payments $ 49 $ 231 $ 280 $ 24 $ 231 $ 255 HEI’s consolidated operating lease expense prior to the adoption of ASC 842 was $21 million and $20 million in 2018 and 2017, respectively. The Utilities’ operating lease expense prior to the adoption of ASC 842 was $11 million |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Note 9 · Revenues Revenue from contracts with customers. The revenues subject to Topic 606 include the Utilities’ electric energy sales revenue and the ASB’s transaction fees, as further described below. Electric Utilities . Electric energy sales . Electric energy sales represent revenues from the generation and transmission of electricity to customers under tariffs approved by the PUC. Transaction pricing for electricity is determined and approved by the PUC for each rate class and includes revenues from the base electric charges, which are composed of (1) the customer, demand, energy, and minimum charges, and (2) the power factor, service voltage, and other adjustments as provided in each rate and rate rider schedule. The Utilities satisfy performance obligations over time, i.e., the Utilities generate and transfer control of the electricity over time as the customer simultaneously receives and consumes the benefits provided by the Utilities’ performance. Payments from customers are generally due within 30 days from the end of the billing period. As electric bills to customers reflect the amount that corresponds directly with the value of the Utilities’ performance to date, the Utilities have elected to use the right to invoice practical expedient, which entitles them to recognize revenue in the amount they have the right to invoice. The Utilities’ revenues include amounts for recovery of various Hawaii state revenue taxes. Revenue taxes are generally recorded as an expense in the year the related revenues are recognized. For 2019, 2018 and 2017, the Utilities’ revenues include recovery of revenue taxes of approximately $226 million , $226 million and $202 million , respectively, which amounts are in “Taxes, other than income taxes” expense. However, the Utilities pay revenue taxes to the taxing authorities based on (1) the prior year’s billed revenues (in the case of public service company taxes and PUC fees) in the current year or (2) the current year’s cash collections from electric sales (in the case of franchise taxes) after year end. As of December 31, 2019 and 2018, the Utilities had recorded $132 million and $130 million , respectively, in “Taxes accrued, including revenue taxes” on the Utilities’ consolidated balance sheet for amounts previously collected from customers or accrued for public service company taxes and PUC fees, net of amounts paid to the taxing authorities. Such amounts will be used to pay public service company taxes and PUC fees owed for the following year. Bank . Bank fees. Bank fees are primarily transaction-based and are recognized when the transaction has occurred and the performance obligation satisfied. From time to time, customers will request a fee waiver and ASB may grant reversals of fees. Revenues are not recorded for the estimated amount of fee reversals for each period. Under the new standard, certain fees paid to third parties that were previously recognized as a component of noninterest expense are now netted with fee income. The change in presentation will have no effect on the reported amount of operating income. Fees from other financial services - These fees primarily include debit card interchange income and fees, automated teller machine fees, credit card interchange income and fees, check ordering fees, wire fees, safe deposit rental fees, corporate/business fees, merchant income, online banking fees and international banking fees. Amounts paid to third parties for payment network expenses are included in this financial statement caption in ASB’s Statements of Income and Comprehensive Income Data (in Revenues—Bank financial statement caption of HEI’s Consolidated Statements of Income). Previously, these expenses were recorded in the other expense financial statement caption of ASB’s Statements of Income and Comprehensive Income Data (in Expenses—Bank financial statement caption of HEI’s Consolidated Statements of Income). Fee income on deposit liabilities - These fees primarily include “not sufficient funds” fees, monthly deposit account service charge fees, commercial account analysis fees and other deposit fees. Fee income on other financial products - These fees primarily include commission income from the sales of annuity, mutual fund, and life insurance products. In 2017, ASB began offering a fee-based, managed account product in which income is based on a percentage of assets under management. ASB satisfies its performance obligations under the managed account arrangement over time, and consequently, fees for assets under management are recognized over time as the customer simultaneously receives and consumes the benefit of asset management services. Fees recognized to date from the managed account product were minimal. Revenues from other sources. Revenues from other sources not subject to Topic 606 are accounted for as follows: Electric Utilities . Regulatory revenues . Regulatory revenues primarily consist of revenues from decoupling mechanism, cost recovery surcharges and the Tax Act adjustments. Decoupling mechanism - Under the decoupling mechanism, the Utilities are allowed to recover or obligated to refund the difference between actual revenue and the target revenue as determined by the PUC, collect revenue adjustment mechanism and major project interim recovery revenues, and recover or refund performance incentive mechanism penalties or rewards. These adjustments will be reflected in tariffs in future periods. Under the decoupling tariff approved in 2011, the prior year accrued RBA revenues and the annual RAM amount are billed from June 1 of each year through May 31 of the following year, which is within 24 months following the end of the year in which they are recorded as required by the accounting standard for alternative revenue programs. Cost recovery surcharges - For the timely recovery of additional costs incurred, and reconciliation of costs and expenses included in tariffed rates, the Utilities recognize revenues under surcharge mechanisms approved by the PUC. These will be reflected in tariffs in future periods (e.g., ECRC and PPAC). Tax Act adjustments - These represent adjustments to revenues for the amounts included in tariffed revenues that will be returned to customers as a result of the Tax Act. Since revenue adjustments discussed above resulted from either agreements with the PUC or change in tax law, rather than contracts with customers, they are not subject to the scope of Topic 606. Also, see Notes 1 , 3 and 12 of the Consolidated Financial Statements. The Utilities have elected to present these revenue adjustments on a gross basis, which results in the amounts being billed to customers presented in revenues from contracts with customers and the amortization of the related regulatory asset/liability as revenues from other sources. Depending on whether the previous deferral balance being amortized was a regulatory asset or regulatory liability, and depending on the size and direction of the current year deferral of surcharges and/or refunds to customers, it could result in negative regulatory revenue during the year. Utility pole attachment fees . These fees primarily represent revenues from third-party companies for their access to and shared use of Utilities-owned poles through licensing agreements. As the shared portion of the utility pole is functionally dependent on the rest of the structure, no distinct goods appear to exist. Therefore, these fees are not subject to the scope of Topic 606, but recognized in accordance with ASC Topic 610, Other Income . Bank . Interest and dividend income . Interest and fees on loans are recognized in accordance with ASC Topic 310, Receivables , including the related allowance for loan losses. Interest and dividends on investment securities are recognized in accordance with ASC Topic 320, Investments-Debt and Equity Securities. See Notes 1 and 4 of the Consolidated Financial Statements. Other bank noninterest income . Other bank noninterest income primarily consists of mortgage banking income and bank-owned life insurance income. Mortgage banking income - Mortgage banking income consists primarily of realized and unrealized gains on sale of loans accounted for pursuant to ASC Topic 860, Transfers and Servicing . Interest rate lock commitments and forward loan sales are considered derivatives and are accounted pursuant to ASC Topic 815, Derivatives and Hedging . Bank-Owned Life Insurance (BOLI) - The recognition of BOLI cash surrender value does not represent a contract with a customer and is accounted for in accordance with Emerging Issues Task Force Issue 06-05, Accounting for Purchases of Life Insurance-Determining the Amount that Could be Realized in Accordance with FASB Technical Bulletin No. 85-4, Accounting for Purchases of Life Insurance . Revenue disaggregation. The following tables disaggregate revenues by major source, timing of revenue recognition, and segment: Year ended December 31, 2019 Year ended December 31, 2018 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 807,652 $ — $ — $ 807,652 $ 801,846 $ — $ — $ 801,846 Electric energy sales - commercial 846,110 — — 846,110 853,672 — — 853,672 Electric energy sales - large light and power 905,308 — — 905,308 894,770 — — 894,770 Electric energy sales - other 16,296 — — 16,296 17,243 — — 17,243 Bank fees — 46,659 — 46,659 — 47,300 — 47,300 Total revenues from contracts with customers 2,575,366 46,659 — 2,622,025 2,567,531 47,300 — 2,614,831 Revenues from other sources Regulatory revenue (54,101 ) — — (54,101 ) (37,687 ) — — (37,687 ) Bank interest and dividend income — 266,554 — 266,554 — 258,225 — 258,225 Other bank noninterest income — 15,357 — 15,357 — 8,750 — 8,750 Other 24,677 — 89 24,766 16,681 — 49 16,730 Total revenues from other sources (29,424 ) 281,911 89 252,576 (21,006 ) 266,975 49 246,018 Total revenues $ 2,545,942 $ 328,570 $ 89 $ 2,874,601 $ 2,546,525 $ 314,275 $ 49 $ 2,860,849 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 46,659 $ — $ 46,659 $ — $ 47,300 $ — $ 47,300 Services/goods transferred over time 2,575,366 — — 2,575,366 2,567,531 — — 2,567,531 Total revenues from contracts with customers $ 2,575,366 $ 46,659 $ — $ 2,622,025 $ 2,567,531 $ 47,300 $ — $ 2,614,831 There are no material contract assets or liabilities associated with revenues from contracts with customers existing at December 31, 2018 or December 31, 2019 . Accounts receivable and unbilled revenues related to contracts with customers represent an unconditional right to consideration since all performance obligations have been satisfied. These amounts are disclosed as accounts receivable and unbilled revenues, net on HEI’s consolidated balance sheets and customer accounts receivable, net and accrued unbilled revenues, net on Hawaiian Electric’s consolidated balance sheets. As of December 31, 2019 , the Company had no material remaining performance obligations due to the nature of the Company’s contracts with its customers. For the Utilities, performance obligations are fulfilled as electricity is delivered to customers. For ASB, fees are recognized when a transaction is completed. |
Retirement benefits
Retirement benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement benefits | Note 10 · Retirement benefits Defined benefit plans. Substantially all of the employees of HEI and the Utilities participate in the Retirement Plan for Employees of Hawaiian Electric Industries, Inc. and Participating Subsidiaries (HEI Pension Plan). Substantially all of the employees of ASB participated in the American Savings Bank Retirement Plan (ASB Pension Plan) until it was frozen on December 31, 2007. The HEI Pension Plan and the ASB Pension Plan (collectively, the Plans) are qualified, noncontributory defined benefit pension plans and include, in the case of the HEI Pension Plan, benefits for utility union employees determined in accordance with the terms of the collective bargaining agreements between the Utilities and the union. The Plans are subject to the provisions of ERISA. In addition, some current and former executives and directors of HEI and its subsidiaries participate in noncontributory, nonqualified plans (collectively, Supplemental Plans). In general, benefits are based on the employees’ or directors’ years of service and compensation. The continuation of the Plans and the Supplemental Plans and the payment of any contribution thereunder are not assumed as contractual obligations by the participating employers. The Supplemental Plan for directors has been frozen since 1996. The ASB Pension Plan was frozen as of December 31, 2007. The HEI Supplemental Executive Retirement Plan and ASB Supplemental Executive Retirement, Disability, and Death Benefit Plan (noncontributory, nonqualified, defined benefit plans) were frozen as of December 31, 2008. No participants have accrued any benefits under these plans after the respective plan’s freeze and the plans will be terminated at the time all remaining benefits have been paid. Each participating employer reserves the right to terminate its participation in the applicable plans at any time, and HEI and ASB reserve the right to terminate their respective plans at any time. If a participating employer terminates its participation in the Plans, the interest of each affected participant would become 100% vested to the extent funded. Upon the termination of the Plans, assets would be distributed to affected participants in accordance with the applicable allocation provisions of ERISA and any excess assets that exist would be paid to the participating employers. Participants’ benefits in the Plans are covered up to certain limits under insurance provided by the Pension Benefit Guaranty Corporation. Postretirement benefits other than pensions. HEI and the Utilities provide eligible employees health and life insurance benefits upon retirement under the Postretirement Welfare Benefits Plan for Employees of Hawaiian Electric Company, Inc. and participating employers (Hawaiian Electric Benefits Plan). Eligibility of employees and dependents is based on eligibility to retire at termination, the retirement date and the date of hire. The plan was amended in 2011, changing eligibility for certain bargaining unit employees hired prior to May 1, 2011, based on new minimum age and service requirements effective January 1, 2012, per the collective bargaining agreement, and certain management employees hired prior to May 1, 2011 based on new eligibility minimum age and service requirements effective January 1, 2012. The minimum age and service requirements for management and bargaining unit employees hired May 1, 2011 and thereafter have increased and their dependents are not eligible to receive postretirement benefits. Employees may be eligible to receive benefits from the HEI Pension Plan but may not be eligible for postretirement welfare benefits if the different eligibility requirements are not met. The executive death benefit plan was frozen on September 10, 2009 for participants at benefit levels as of that date. The Company’s and Utilities’ cost for OPEB has been adjusted to reflect the plan amendments, which reduced benefits and created prior service credits to be amortized over average future service of affected participants. The amortization of the prior service credit will reduce benefit until the various credit bases are fully recognized. Each participating employer reserves the right to terminate its participation in the Hawaiian Electric Benefits Plan at any time. Balance sheet recognition of the funded status of retirement plans. Employers must recognize on their balance sheets the funded status of defined benefit pension and other postretirement benefit plans with an offset to AOCI in shareholders’ equity (using the projected benefit obligation (PBO) and accumulated postretirement benefit obligation (APBO), to calculate the funded status). The PUC allowed the Utilities to adopt pension and OPEB tracking mechanisms in previous rate cases. The amount of the net periodic pension cost (NPPC) and net periodic benefits costs (NPBC) to be recovered in rates is established by the PUC in each rate case. Under the Utilities’ tracking mechanisms, any actual costs determined in accordance with GAAP that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will then be amortized over 5 years beginning with the respective utility’s next rate case. Accordingly, all retirement benefit expenses (except for executive life and nonqualified pension plan expenses, which amounted to $1.1 million and $1.0 million in 2019 and 2018 , respectively) determined in accordance with GAAP will be recovered. Under the tracking mechanisms, amounts that would otherwise be recorded in AOCI (excluding amounts for executive life and nonqualified pension plans), net of taxes, as well as other pension and OPEB charges, are allowed to be reclassified as a regulatory asset, as those costs will be recovered in rates through the NPPC and NPBC in the future. The Utilities have reclassified to a regulatory asset/(liability) charges for retirement benefits that would otherwise be recorded in AOCI (amounting to the elimination of a potential charge to AOCI of $(21.8) million pretax and $11.2 million pretax for 2019 and 2018 , respectively). Under the pension tracking mechanism, the Utilities are required to make contributions to the pension trust in the amount of the actuarially calculated NPPC, except when limited by the ERISA minimum contribution requirements or the maximum contributions imposed by the Internal Revenue Code. Contributions in excess of the calculated NPPC are recorded in a separate regulatory asset. In 2018, the pension tracking mechanism was modified to allow prior year contributions made in excess of NPPC to satisfy future contributions, when the ERISA minimum required contribution is less than NPPC. The Utilities reduced their 2018 contribution for this modification. The OPEB tracking mechanisms generally require the Utilities to make contributions to the OPEB trust in the amount of the actuarially calculated NPBC, (excluding amounts for executive life), except when limited by material, adverse consequences imposed by federal regulations. Future decisions in rate cases could further impact funding amounts. Defined benefit pension and other postretirement benefit plans information. The changes in the obligations and assets of the Company’s and Utilities’ retirement benefit plans and the changes in AOCI (gross) for 2019 and 2018 and the funded status of these plans and amounts related to these plans reflected in the Company’s and Utilities’ consolidated balance sheet as of December 31, 2019 and 2018 were as follows: 2019 2018 (in thousands) Pension benefits Other benefits Pension benefits Other benefits HEI consolidated Benefit obligation, January 1 $ 1,991,384 $ 188,666 $ 2,094,356 $ 212,601 Service cost 62,135 2,209 68,987 2,721 Interest cost 84,267 8,004 77,374 7,933 Actuarial losses (gains) 224,421 25,998 (171,226 ) (25,977 ) Participants contributions — 2,351 — 2,505 Benefits paid and expenses (83,924 ) (11,589 ) (78,107 ) (11,117 ) Benefit obligation, December 31 2,278,283 215,639 1,991,384 188,666 Fair value of plan assets, January 1 1,479,067 173,693 1,618,703 193,995 Actual return on plan assets 354,072 35,525 (101,406 ) (11,846 ) Employer contributions 48,629 — 38,496 — Participants contributions — 2,351 — 2,505 Benefits paid and expenses (82,568 ) (10,738 ) (76,726 ) (10,961 ) Fair value of plan assets, December 31 1,799,200 200,831 1,479,067 173,693 Accrued benefit asset (liability), December 31 $ (479,083 ) $ (14,808 ) $ (512,317 ) $ (14,973 ) Other assets $ 19,396 $ — $ 10,930 $ — Defined benefit pension and other postretirement benefit plans liability (498,479 ) (14,808 ) (523,247 ) (14,973 ) Accrued benefit asset (liability), December 31 $ (479,083 ) $ (14,808 ) $ (512,317 ) $ (14,973 ) AOCI debit, January 1 (excluding impact of PUC D&Os) $ 536,920 $ 1,962 $ 527,830 $ 1,474 Recognized during year – prior service credit 42 1,806 42 1,805 Recognized during year – net actuarial (losses) gains (15,479 ) 13 (30,084 ) (95 ) Occurring during year – net actuarial losses (gains) (17,662 ) 2,829 39,132 (1,222 ) AOCI debit before cumulative impact of PUC D&Os, December 31 503,821 6,610 536,920 1,962 Cumulative impact of PUC D&Os (474,628 ) (7,458 ) (498,944 ) (4,929 ) AOCI debit/(credit), December 31 $ 29,193 $ (848 ) $ 37,976 $ (2,967 ) Net actuarial loss $ 503,813 $ 11,707 $ 536,954 $ 8,865 Prior service cost (gain) 8 (5,097 ) (34 ) (6,903 ) AOCI debit before cumulative impact of PUC D&Os, December 31 503,821 6,610 536,920 1,962 Cumulative impact of PUC D&Os (474,628 ) (7,458 ) (498,944 ) (4,929 ) AOCI debit/(credit), December 31 29,193 (848 ) 37,976 (2,967 ) Income taxes (benefits) (7,677 ) 219 (10,023 ) 765 AOCI debit/(credit), net of taxes (benefits), December 31 $ 21,516 $ (629 ) $ 27,953 $ (2,202 ) As of December 31, 2019 and 2018, the other postretirement benefit plans shown in the table above had ABOs in excess of plan assets. 2019 2018 (in thousands) Pension benefits Other benefits Pension benefits Other benefits Hawaiian Electric consolidated Benefit obligation, January 1 $ 1,837,653 $ 181,162 $ 1,928,648 $ 204,644 Service cost 60,461 2,191 67,359 2,704 Interest cost 77,851 7,673 71,294 7,628 Actuarial losses (gains) 212,310 25,123 (158,258 ) (25,330 ) Participants contributions — 2,311 — 2,472 Benefits paid and expenses (77,060 ) (11,382 ) (71,535 ) (10,958 ) Transfers (311 ) (5 ) 145 2 Benefit obligation, December 31 2,110,904 207,073 1,837,653 181,162 Fair value of plan assets, January 1 1,343,113 170,862 1,468,403 190,814 Actual return on plan assets 326,204 34,928 (91,836 ) (11,625 ) Employer contributions 47,808 — 37,550 — Participants contributions — 2,311 — 2,472 Benefits paid and expenses (76,581 ) (10,532 ) (71,060 ) (10,801 ) Other (127 ) (5 ) 56 2 Fair value of plan assets, December 31 1,640,417 197,564 1,343,113 170,862 Accrued benefit liability, December 31 $ (470,487 ) $ (9,509 ) $ (494,540 ) $ (10,300 ) Other liabilities (short-term) (518 ) (715 ) (512 ) (669 ) Defined benefit pension and other postretirement benefit plans liability (469,969 ) (8,794 ) (494,028 ) (9,631 ) Accrued benefit liability, December 31 $ (470,487 ) $ (9,509 ) $ (494,540 ) $ (10,300 ) AOCI debit, January 1 (excluding impact of PUC D&Os) $ 502,189 $ 1,551 $ 493,464 $ 839 Recognized during year – prior service credit (cost) (7 ) 1,803 (8 ) 1,803 Recognized during year – net actuarial losses (14,658 ) — (27,302 ) (98 ) Occurring during year – net actuarial losses (gains) (9,446 ) 2,376 36,035 (993 ) AOCI debit before cumulative impact of PUC D&Os, December 31 478,078 5,730 502,189 1,551 Cumulative impact of PUC D&Os (474,628 ) (7,458 ) (498,944 ) (4,929 ) AOCI debit/(credit), December 31 $ 3,450 $ (1,728 ) $ 3,245 $ (3,378 ) Net actuarial loss $ 478,069 $ 10,815 $ 502,173 $ 8,439 Prior service cost (gain) 9 (5,085 ) 16 (6,888 ) AOCI debit before cumulative impact of PUC D&Os, December 31 478,078 5,730 502,189 1,551 Cumulative impact of PUC D&Os (474,628 ) (7,458 ) (498,944 ) (4,929 ) AOCI debit/(credit), December 31 3,450 (1,728 ) 3,245 (3,378 ) Income taxes (benefits) (888 ) 445 (836 ) 870 AOCI debit/(credit), net of taxes (benefits), December 31 $ 2,562 $ (1,283 ) $ 2,409 $ (2,508 ) As of December 31, 2019 and 2018 , the other postretirement benefit plan shown in the table above had ABOs in excess of plan assets. Pension benefits . In 2019, investment returns were higher than assumed rates and together with updates to mortality assumptions projected generationally, improved the funded position. Actuarial losses due to demographic experience, including assumption changes, the most significant of which was the decrease in the discount rate used to measure PBO compared to the prior year, partially offset the improvement in funded position. In 2018, actuarial gains due to demographic experience, including assumption changes, the most significant of which was the increase in the discount rate used to measure PBO and updates to mortality assumptions projected generationally improved funded position but investment losses more than offset any improvement resulting in a deterioration in the funded position. Other benefits . In 2019, investment returns were higher than assumed rates, which improved funded position and predominately offset the actuarial losses due to demographic experience, including assumption changes, the most significant of which was the decrease in the discount rate used to measure APBO. Updates to the per capita claims costs also contributed to a deterioration in the funded position. In 2018, actuarial gains due to demographic experience, including assumption changes, the most significant of which was the increase in the discount rate used to measure APBO along with updates to mortality assumptions projected generationally and per capita claims costs improved funded position beyond the deterioration caused by investment losses. The dates used to determine retirement benefit measurements for the defined benefit plans and OPEB were December 31 of 2019 , 2018 and 2017 . For purposes of calculating NPPC and NPBC, the Company and the Utilities have determined the market-related value of retirement benefit plan assets by calculating the difference between the expected return and the actual return on the fair value of the plan assets, then amortizing the difference over future years – 0% in the first year and 25% in each of years two through five – and finally adding or subtracting the unamortized differences for the past four years from fair value. The method includes a 15% range restriction around the fair value of such assets (i.e., 85% to 115% of fair value). A primary goal of the plans is to achieve long-term asset growth sufficient to pay future benefit obligations at a reasonable level of risk. The investment policy target for defined benefit pension and OPEB plans reflects the philosophy that long-term growth can best be achieved by prudent investments in equity securities while balancing overall fund and pension liability volatility by an appropriate allocation to fixed income securities. In order to reduce the level of portfolio risk and volatility in returns, efforts have been made to diversify the plans’ investments by asset class, geographic region, market capitalization and investment style. The asset allocation of defined benefit retirement plans to equity and fixed income securities (excluding cash) and related investment policy targets and ranges were as follows: Pension benefits 1 Other benefits 2 Investment policy Investment policy December 31 2019 2018 Target Range 2019 2018 Target Range Assets held by category Equity securities 71 % 69 % 70 % 65-75 71 % 70 % 70 % 65-75 Fixed income securities 29 31 30 25-35 29 30 30 25-35 100 % 100 % 100 % 100 % 100 % 100 % 1 Asset allocation (excluding cash) is applicable to only HEI and the Utilities. As of December 31, 2019 and 2018 , nearly all of ASB’s pension assets were invested in fixed income securities. 2 Asset allocation (excluding cash) is applicable to only HEI and the Utilities. ASB does not fund its other benefits. Assets held in various trusts for the retirement benefit plans are measured at fair value on a recurring basis and were as follows: Pension benefits Other benefits Fair value measurements using Fair value measurements using (in millions) December 31 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs December 31 Level 1 Level 2 Level 3 2019 Equity securities $ 470 $ 470 $ — $ — $ 61 $ 61 $ — $ — Equity index and exchange-traded funds 610 610 — — 69 69 — — Equity investments at net asset value (NAV) 78 — — — 11 — — — Total equity investments 1,158 1,080 — — 141 130 — — Fixed income securities and public mutual funds 353 123 230 — 52 49 2 — Fixed income investments at NAV 245 — — — 4 — — — Total fixed income investments 598 123 230 — 56 49 2 — Cash equivalents at NAV 39 — — — 4 — — — Total 1,795 $ 1,203 $ 230 $ — 201 $ 179 $ 2 $ — Cash, receivables and payables, net 4 — Fair value of plan assets $ 1,799 $ 201 2018 Equity securities $ 507 $ 507 $ — $ — $ 65 $ 65 $ — $ — Equity index and exchange-traded funds 348 348 — — 42 42 — — Equity investments at NAV 65 — — — 10 — — — Total equity investments 920 855 — — 117 107 — — Fixed income securities and public mutual funds 310 123 187 — 47 45 2 — Fixed income investments at NAV 208 — — — 4 — — — Total fixed income investments 518 123 187 — 51 45 2 — Cash equivalents at NAV 36 — — — 5 — — — Total 1,474 $ 978 $ 187 $ — 173 $ 152 $ 2 $ — Cash, receivables and payables, net 5 1 Fair value of plan assets $ 1,479 $ 174 Pension benefits Other benefits Measured at net asset value December 31 Redemption frequency Redemption notice period December 31 Redemption frequency Redemption notice period (in millions) 2019 Non U.S. equity funds (a) $ 78 Daily-Monthly 5-30 days $ 11 Daily-Monthly 5-30 days Fixed income investments (b) 245 Monthly 15 days 4 Monthly 15 days Cash equivalents (c) 39 Daily 0-1 day 4 Daily 0-1 day $ 362 $ 19 2018 Non U.S. equity funds (a) $ 65 Daily-Monthly 5-30 days $ 10 Daily-Monthly 5-30 days Fixed income investments (b) 208 Monthly 15 days 4 Monthly 15 days Cash equivalents (c) 36 Daily 0-1 day 5 Daily 0-1 day $ 309 $ 19 None of the investments presented in the tables above have unfunded commitments. (a) Represents investments in funds that primarily invest in non-U.S., emerging markets equities. Redemption frequency for pension benefits assets as of December 31, 2019 were: daily, 60% and monthly, 40% , and as of December 31, 2018 were daily, 32% and monthly, 68% . Redemption frequency for other benefits assets as of December 31, 2019 were: daily, 59% and monthly, 41% and as of December 31, 2018 were: daily, 27% and monthly, 73% . (b) Represents investments in fixed income securities invested in a US-dollar denominated fund that seeks to exceed the Barclays Capital Long Corporate A or better Index through investments in US-dollar denominated fixed income securities and commingled vehicles. (c) Represents investments in cash equivalent funds. This class includes funds that invest primarily in securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. For pension benefits, the fund may also invest in fixed income securities of investment grade issuers. The fair values of the investments shown in the table above represent the Company’s best estimates of the amounts that would be received upon sale of those assets in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset at the measurement date, the fair value measurement reflects the Company’s judgments about the assumptions that market participants would use in pricing the asset. Those judgments are developed by the Company based on the best information available in the circumstances. The fair value of investments measured at net asset value presented in the tables above are intended to permit reconciliation to the fair value of plan assets amounts. The Company used the following valuation methodologies for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2019 and 2018 . Equity securities, equity index and exchange-traded funds, U.S. Treasury fixed income securities and public mutual funds (Level 1) . Equity securities, equity index and exchange-traded funds, U.S. Treasury fixed income securities and public mutual funds are valued at the closing price reported on the active market on which the individual securities or funds are traded. Fixed income securities (Level 2) . Fixed income securities, other than those issued by the U.S. Treasury, are valued based on yields currently available on comparable securities of issuers with similar credit ratings. The following weighted-average assumptions were used in the accounting for the plans: Pension benefits Other benefits December 31 2019 2018 2017 2019 2018 2017 Benefit obligation Discount rate 3.61 % 4.31 % 3.74 % 3.52 % 4.34 % 3.72 % Rate of compensation increase 3.5 3.5 3.5 NA NA NA Net periodic pension/benefit cost (years ended) Discount rate 4.31 3.74 4.26 4.34 3.72 4.22 Expected return on plan assets 1 7.25 7.50 7.50 7.25 7.50 7.50 Rate of compensation increase 2 3.5 3.5 3.5 NA NA NA NA Not applicable 1 HEI’s and Utilities’ plan assets only. For 2019, 2018 and 2017, ASB’s expected return on plan assets was 4.51% , 3.94% and 4.46% , respectively. 2 The Company and the Utilities use a graded rate of compensation increase assumption based on age. The rate provided above is an average across all future years of service for the current population. The Company and the Utilities based their selection of an assumed discount rate for 2020 NPPC and NPBC and December 31, 2019 disclosure on a cash flow matching analysis that utilized bond information provided by Bloomberg for all non-callable, high quality bonds (generally rated Aa or better) as of December 31, 2019 . In selecting the expected rate of return on plan assets for 2020 NPPC and NPBC: a) HEI and the Utilities considered economic forecasts for the types of investments held by the plans (primarily equity and fixed income investments), the Plans’ asset allocations, industry and corporate surveys and the past performance of the plans’ assets in selecting 7.25% and b) ASB considered its liability driven investment strategy in selecting 3.69% , which is consistent with the assumed discount rate as of December 31, 2019 with a 20 basis point active manager premium. For 2019, retirement benefit plans’ assets of HEI and the Utilities had a net return of 24.3% . As of December 31, 2019 , the assumed health care trend rates for 2020 and future years were as follows: medical, 7% , grading down to 5% for 2028 and thereafter; dental, 5% ; and vision, 4% . As of December 31, 2018 , the assumed health care trend rates for 2019 and future years were as follows: medical, 7.25% , grading down to 5% for 2028 and thereafter; dental, 5% ; and vision, 4% . The components of NPPC and NPBC were as follows: Pension benefits Other benefits (in thousands) 2019 2018 2017 2019 2018 2017 HEI consolidated Service cost $ 62,135 $ 68,987 $ 64,906 $ 2,209 $ 2,721 $ 3,374 Interest cost 84,267 77,374 81,185 8,004 7,933 9,453 Expected return on plan assets (111,989 ) (108,953 ) (102,745 ) (12,356 ) (12,908 ) (12,326 ) Amortization of net prior service gain (42 ) (42 ) (55 ) (1,806 ) (1,805 ) (1,793 ) Amortization of net actuarial losses 15,479 30,084 26,496 (13 ) 95 1,130 Net periodic pension/benefit cost 49,850 67,450 69,787 (3,962 ) (3,964 ) (162 ) Impact of PUC D&Os 48,143 25,828 (18,004 ) 3,258 3,842 1,211 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 97,993 $ 93,278 $ 51,783 $ (704 ) $ (122 ) $ 1,049 Hawaiian Electric consolidated Service cost $ 60,461 $ 67,359 $ 63,059 $ 2,191 $ 2,704 $ 3,353 Interest cost 77,851 71,294 74,632 7,673 7,628 9,115 Expected return on plan assets (104,632 ) (102,368 ) (95,892 ) (12,180 ) (12,713 ) (12,147 ) Amortization of net prior service (gain) cost 7 8 8 (1,803 ) (1,803 ) (1,804 ) Amortization of net actuarial losses 14,658 27,302 24,392 — 98 1,102 Net periodic pension/benefit cost 48,345 63,595 66,199 (4,119 ) (4,086 ) (381 ) Impact of PUC D&Os 48,143 25,828 (18,004 ) 3,258 3,842 1,211 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 96,488 $ 89,423 $ 48,195 $ (861 ) $ (244 ) $ 830 The Company recorded pension expense of $59 million , $59 million and $33 million and OPEB expense of $(0.1) million , nil and $1.0 million in 2019 , 2018 and 2017 , respectively, and charged the remaining amounts primarily to electric utility plant. The Utilities recorded pension expense of $57 million , $55 million and $30 million and OPEB (income) expense of $(0.3) million , $(0.1) million and $0.8 million in 2019 , 2018 and 2017 , respectively, and charged the remaining amounts primarily to electric utility plant. Additional information on the defined benefit pension plans’ accumulated benefit obligations (ABOs), which do not consider projected pay increases (unlike the PBOs shown in the table above), and pension plans with ABOs and PBOs in excess of plan assets were as follows: HEI consolidated Hawaiian Electric consolidated December 31 2019 2018 2019 2018 (in billions) Defined benefit plans - ABOs $ 2.0 $ 1.7 $ 1.8 $ 1.6 Defined benefit plans with ABO in excess of plan assets ABOs 1.9 1.6 1.8 1.6 Fair value of plan assets 1.7 1.4 1.6 1.3 Defined benefit plans with PBOs in excess of plan assets PBOs 2.2 1.9 2.1 1.8 Fair value of plan assets 1.7 1.4 1.6 1.3 HEI consolidated . The Company estimates that the cash funding for the qualified defined benefit pension plans in 2020 will be $69 million , which should fully satisfy the minimum required contributions to those plans, including requirements of the Utilities’ pension tracking mechanisms and the Plan’s funding policy. The Company’s current estimate of contributions to its other postretirement benefit plans in 2020 is nil . As of December 31, 2019 , the benefits expected to be paid under all retirement benefit plans in 2020 , 2021 , 2022 , 2023 , 2024 and 2025 through 2029 amount to $91 million , $95 million , $99 million , $103 million , $107 million and $593 million , respectively. Hawaiian Electric consolidated . The Utilities estimate that the cash funding for the qualified defined benefit pension plan in 2020 will be $68 million , which should fully satisfy the minimum required contributions to that Plan, including requirements of the pension tracking mechanisms and the Plan’s funding policy. The Utilities’ current estimate of contributions to its other postretirement benefit plans in 2020 is nil . As of December 31, 2019 , the benefits expected to be paid under all retirement benefit plans in 2020 , 2021 , 2022 , 2023 , 2024 and 2025 through 2029 amounted to $84 million , $87 million , $90 million , $93 million , $97 million and $544 million , respectively. Defined contribution plans information. For 2019 , 2018 and 2017 , the Company’s expenses for its defined contribution plans under the HEIRSP and the ASB 401(k) Plan were $7 million , $7 million and $7 million , respectively, and cash contributions were $7 million , $7 million and $6 million , respectively. The Utilities’ expenses and cash contributions for its defined contribution plan under the HEIRSP for 2019 , 2018 and 2017 were $3 million , $2 million and $2 million , respectively. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation | Note 11 · 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 (SARs), 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 were added to the shares available for issuance under these programs. As of December 31, 2019 , approximately 3.2 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 0.7 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). Restricted stock units awarded under the 2010 Equity and Incentive Plan in 2019 , 2018 , 2017 and 2016 will vest and be issued in unrestricted stock in four equal annual increments on the anniversaries of the grant date and are forfeited to the extent they have not become vested for terminations of employment during the vesting period, except that pro-rata vesting is provided for terminations due to death, disability and retirement. Restricted stock units expense has been recognized in accordance with the fair-value-based measurement method of accounting. Dividend equivalent rights are accrued quarterly and are paid at the end of the restriction period when the associated restricted stock units vest. Stock performance awards granted under the 2019-2021, 2018-2020 and 2017-2019 long-term incentive plans (LTIP) entitle the grantee to shares of common stock with dividend equivalent rights once service conditions and performance conditions are satisfied at the end of the three -year performance period. LTIP awards are forfeited for terminations of employment during the performance period, except that pro-rata participation is provided for terminations due to death, disability and retirement based upon completed months of service after a minimum of 12 months of service in the performance period. Compensation expense for the stock performance awards portion of the LTIP has been recognized in accordance with the fair-value-based measurement method of accounting for performance shares. 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. On June 26, 2019, an additional 300,000 shares were made available for issuance under the 2011 Director Plan. As of December 31, 2019 , there were 310,263 shares remaining available for future issuance under the 2011 Director Plan. Share-based compensation expense and the related income tax benefit were as follows: (in millions) 2019 2018 2017 HEI consolidated Share-based compensation expense 1 $ 10.0 $ 7.8 $ 5.4 Income tax benefit 1.4 1.1 1.9 Hawaiian Electric consolidated Share-based compensation expense 1 3.2 2.7 1.9 Income tax benefit 0.6 0.5 0.7 1 For 2019, 2018 and 2017, the Company has not capitalized any share-based compensation. Stock awards. HEI granted HEI common stock to nonemployee directors under the 2011 Director Plan as follows: (dollars in millions) 2019 2018 2017 Shares granted 36,344 38,821 35,770 Fair value $ 1.6 $ 1.3 $ 1.2 Income tax benefit 0.4 0.3 0.5 The number of shares issued to each nonemployee director of HEI, Hawaiian Electric and ASB is determined based on the closing price of HEI common stock on the grant date. Restricted stock units. Information about HEI’s grants of restricted stock units was as follows: 2019 2018 2017 Shares (1) Shares (1) Shares (1) Outstanding, January 1 200,358 $ 33.05 197,047 $ 31.53 220,683 $ 29.57 Granted 96,565 37.82 93,853 34.12 97,873 33.47 Vested (76,813 ) 32.61 (75,683 ) 30.56 (92,147 ) 28.88 Forfeited (12,469 ) 34.20 (14,859 ) 32.35 (29,362 ) 31.57 Outstanding, December 31 207,641 $ 35.36 200,358 $ 33.05 197,047 $ 31.53 Total weighted-average grant-date fair value of shares granted (in millions) $ 3.7 $ 3.2 $ 3.3 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For 2019 , 2018 and 2017 , total restricted stock units and related dividends that vested had a fair value of $3.2 million , $2.7 million and $3.5 million , respectively, and the related tax benefits were $0.5 million , $0.4 million and $1.1 million , respectively. As of December 31, 2019 , there was $4.8 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 2.5 years . Long-term incentive plan payable in stock. The 2017-2019, 2018-2020 and 2019-2021 LTIPs provide 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 relevant three -year period. The other performance condition goals relate to earnings per share (EPS) growth, return on average common equity (ROACE), Hawaiian Electric’s net income growth, ASB’s efficiency ratio, and Pacific Current’s EBITDA growth and return on average invested capital. LTIP linked to TSR . Information about HEI’s LTIP grants linked to TSR was as follows: 2019 2018 2017 Shares (1) Shares (1) Shares (1) Outstanding, January 1 65,578 $ 38.81 32,904 $ 39.51 83,106 $ 22.95 Granted 35,215 41.07 37,832 38.21 37,204 39.51 Vested (issued or unissued and cancelled) — — — — (83,106 ) 22.95 Forfeited (4,391 ) 39.19 (5,158 ) 38.84 (4,300 ) 39.51 Outstanding, December 31 96,402 $ 39.62 65,578 $ 38.81 32,904 $ 39.51 Total weighted-average grant-date fair value of shares granted (in millions) $ 1.4 $ 1.4 $ 1.5 (1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. 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: 2019 2018 2017 Risk-free interest rate 2.48 % 2.29 % 1.46 % Expected life in years 3 3 3 Expected volatility 15.8 % 17.0 % 20.1 % Range of expected volatility for Peer Group 15.0% to 73.2% 15.1% to 26.2% 15.4% to 26.0% Grant date fair value (per share) $ 41.07 $ 38.20 $ 39.51 For 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 . There were no share-based LTIP awards linked to TSR with a vesting date in 2018 or 2019. As of December 31, 2019 , there was $1.4 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 1.5 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: 2019 2018 2017 Shares (1) Shares (1) Shares (1) Outstanding, January 1 276,169 $ 33.80 131,616 $ 33.47 109,816 $ 25.18 Granted 140,855 37.78 151,328 34.12 148,818 33.47 Vested — — — — (109,816 ) 25.18 Increase above target (cancelled) 4,314 33.53 13,858 33.49 — — Forfeited (17,570 ) 34.66 (20,633 ) 33.80 (17,202 ) 33.48 Outstanding, December 31 403,768 $ 35.15 276,169 $ 33.80 131,616 $ 33.47 Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) $ 5.3 $ 5.2 $ 5.0 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For 2017 , total vested LTIP awards linked to other performance conditions and related dividends had a fair value of $4.2 million and the related tax benefits were $1.6 million . There were no share-based LTIP awards linked to other performance conditions with a vesting date in 2018 or 2019. As of December 31, 2019 , there was $5.1 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 1.5 years . |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 12 · Income taxes The components of income taxes attributable to net income for common stock were as follows: HEI consolidated Hawaiian Electric consolidated Years ended December 31 2019 2018 2017 2019 2018 2017 (in thousands) Federal Current $ 28,736 $ 42,903 $ 61,534 $ 21,751 $ 29,649 $ 36,267 Deferred* (4,353 ) (6,099 ) 33,967 (7,793 ) (5,245 ) 35,229 Deferred tax credits, net** 13,410 (12 ) (20 ) 13,155 (12 ) (20 ) 37,793 36,792 95,481 27,113 24,392 71,476 State Current 10,472 17,361 10,076 5,579 13,210 8,947 Deferred (10,732 ) (3,269 ) 3,868 (8,491 ) (2,737 ) 2,808 Deferred tax credits, net** 14,104 (87 ) (32 ) 14,104 (87 ) (32 ) 13,844 14,005 13,912 11,192 10,386 11,723 Total $ 51,637 $ 50,797 $ 109,393 $ 38,305 $ 34,778 $ 83,199 * The 2018 deferred income tax expense includes the final adjustment to reduce the provisional amount recorded in 2017 pursuant to Staff Accounting Bulletin No. 118 (SAB No. 118). See “Major tax developments” disclosure below for details of the accounting for the enactment of the Tax Act. ** Represents 2019 federal and state tax credits, primarily related to the West Loch PV project, deferred and amortized starting in 2020. See West Loch PV Project discussion in Note 3. A reconciliation of the amount of income taxes computed at the federal statutory rate to the amount provided in the consolidated statements of income was as follows: HEI consolidated Hawaiian Electric consolidated Years ended December 31 2019 2018 2017 2019 2018 2017 (in thousands) Amount at the federal statutory income tax rate $ 56,996 $ 53,437 $ 96,796 $ 41,399 $ 37,889 $ 71,801 Increase (decrease) resulting from: State income taxes, net of federal income tax benefit 11,658 11,832 9,789 8,703 8,080 7,584 Net deferred tax asset (liability) adjustment related to the Tax Act (9,255 ) (9,540 ) 13,420 (9,255 ) (9,285 ) 9,168 Other, net (7,762 ) (4,932 ) (10,612 ) (2,542 ) (1,906 ) (5,354 ) Total $ 51,637 $ 50,797 $ 109,393 $ 38,305 $ 34,778 $ 83,199 Effective income tax rate 19.0 % 20.0 % 39.6 % 19.4 % 19.3 % 40.6 % The tax effects of book and tax basis differences that give rise to deferred tax assets and liabilities were as follows: HEI consolidated Hawaiian Electric consolidated December 31 2019 2018 2019 2018 (in thousands) Deferred tax assets Regulatory liabilities, excluding amounts attributable to property, plant and equipment $ 100,427 $ 104,868 $ 100,427 $ 104,868 Operating lease liabilities 51,573 — 45,608 — Allowance for bad debts 14,858 14,647 560 659 Other 1 54,028 46,036 41,181 26,522 Total deferred tax assets 220,886 165,551 187,776 132,049 Deferred tax liabilities Property, plant and equipment related 464,312 437,644 458,349 434,831 Operating lease right-of-use assets 51,542 — 45,608 — Regulatory assets, excluding amounts attributable to property, plant and equipment 33,897 37,345 33,897 37,345 Deferred RAM and RBA revenues — 11,278 — 11,278 Retirement benefits 9,684 20,173 13,072 25,430 Other 40,776 31,629 14,001 6,362 Total deferred tax liabilities 600,211 538,069 564,927 515,246 Net deferred income tax liability $ 379,325 $ 372,518 $ 377,151 $ 383,197 1 As of December 31, 2019, HEI consolidated and Hawaiian Electric consolidated have deferred tax assets of $8.7 million and $6.7 million respectively, relating to the benefit of state tax credit carryforwards of $11.7 million and $9 million respectively. These state tax credit carryforwards primarily relate to the West Loch PV project and do not expire. The Company concluded that as of December 31, 2019, a valuation allowance is not required. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are deductible. Based upon historical taxable income and projections for future taxable income, management believes it is more likely than not the Company and the Utilities will realize substantially all of the benefits of the deferred tax assets. As of December 31, 2019 and 2018 , valuation allowances for deferred tax benefits were nil . The Utilities are included in the consolidated federal and Hawaii income tax returns of HEI and are subject to the provisions of HEI’s tax sharing agreement, which determines each subsidiary’s (or subgroup’s) income tax return liabilities and refunds on a standalone basis as if it filed a separate return (or subgroup consolidated return). The following is a reconciliation of the Company’s liability for unrecognized tax benefits for 2019 , 2018 and 2017 . HEI consolidated Hawaiian Electric consolidated (in millions) 2019 2018 2017 2019 2018 2017 Unrecognized tax benefits, January 1 $ 2.1 $ 4.0 $ 3.8 $ 1.6 $ 3.5 3.8 Additions based on tax positions taken during the year 0.5 0.3 0.9 0.5 0.3 0.4 Reductions based on tax positions taken during the year — — (0.2 ) — — (0.2 ) Additions for tax positions of prior years 0.1 0.1 — 0.1 0.1 — Reductions for tax positions of prior years (0.2 ) (0.1 ) (0.5 ) (0.2 ) (0.1 ) (0.5 ) Lapses of statute of limitations (0.3 ) (2.2 ) — (0.3 ) (2.2 ) — Unrecognized tax benefits, December 31 $ 2.2 $ 2.1 $ 4.0 $ 1.7 $ 1.6 $ 3.5 At December 31, 2019 and 2018 , there were $0.5 million of unrecognized tax benefits, if recognized, would affect the Company’s annual effective tax rate. As of December 31, 2019 and 2018 , the Utilities had no unrecognized tax benefits that, if recognized, would affect the Utilities’ annual effective tax rate. The Company and Utilities believe that the unrecognized tax benefits will not significantly increase or decrease within the next 12 months. HEI consolidated. The Company recognizes interest accrued related to unrecognized tax benefits in “Interest expense-other than on deposit liabilities and other bank borrowings” and penalties, if any, in operating expenses. In 2019 , 2018 and 2017 , the Company recognized approximately $0.1 million , $(0.1) million and $0.2 million in interest expense. The Company had $0.6 million and $0.4 million of interest accrued as of December 31, 2019 and 2018 , respectively. Hawaiian Electric consolidated. The Utilities recognize interest accrued related to unrecognized tax benefits in “Interest expense and other charges, net” and penalties, if any, in operating expenses. In 2019 , 2018 and 2017 , the Utilities recognized approximately $0.1 million in interest expense. The Utilities had $0.4 million and $0.3 million of interest accrued as of December 31, 2019 and 2018 , respectively. As of December 31, 2019 , the disclosures above present the Company’s and the Utilities’ accruals for potential tax liabilities, which involve management’s judgment regarding the likelihood of the benefit being sustained. The final resolution of uncertain tax positions could result in adjustments to recorded amounts. Based on information currently available, the Company and the Utilities believe these accruals have adequately provided for potential income tax issues with federal and state tax authorities, and that the ultimate resolution of tax issues for all open tax periods will not have a material adverse effect on its results of operations, financial condition or liquidity. IRS examinations have been completed and settled through the tax year 2011 and the statute of limitations has expired for years prior to 2016, leaving subsequent years subject to IRS examination. The tax years 2011 and subsequent are still subject to examination by the Hawaii Department of Taxation. Major tax developments. The changes enacted in the 2017 Tax Cuts and Jobs Act continue to impact corporate taxpayers. The following summarizes the provisions that have a major impact on the Company. Lower tax rate . The corporate income tax rate reduction from 35% to 21% lowered the Company’s effective tax rate in 2018 and the subsequent years. For the regulated Utilities, the excess ADIT resulting from the rate change is being returned to customers over various periods determined with the approval of the PUC. Bonus depreciation . The Tax Act allows 100% bonus depreciation through the end of 2022 for qualified property purchased and placed in service after September 27, 2017. The Tax Act provides that property used in the trade or business of a regulated utility (including the furnishing or selling electrical energy) is not qualified property. However, property placed into service after September 27, 2017 are grandfathered under the pre-Tax Act rules allowing 50% bonus depreciation if subject to written binding purchase contracts prior to September 28, 2017. Other applicable provisions . There are a number of other provisions in the Tax Act that have an impact on the Company, including the repeal of the domestic production activities deduction (DPAD), non-deductibility of transportation fringe benefits excluded from employees income, and the increased limitation on the deductibility of executive compensation. SAB No. 118 . On December 22, 2017, the SEC staff issued SAB No. 118 to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company applied the guidance in SAB No. 118 when accounting for enactment date effects of the Tax Act in 2017 and throughout 2018. At December 31, 2017, the Company had not completed its re-measurement of deferred tax assets and liabilities as a result of the reduction in the US federal corporate income tax rate to 21% and, in accordance with SAB No. 118, recorded a provisional amount. The Tax Act’s reduction of the corporate tax rate to 21% resulted in a net deferred tax balance that was in excess of the taxes the Company expected to pay or be refunded in the future when the temporary differences that created these deferred taxes reverse. The excess related to the Utilities’ deferred taxes that were identified to be refunded in rates was reclassified to a regulatory liability and is currently being returned to the customers over various periods of time. The remaining excess was written off through deferred tax expense. Consequently, in 2017, the Company recorded a provisional increase in deferred tax expense of $13.4 million ( $9.2 million at the Utilities). In December 2018, the end date of the measurement period for purposes of SAB No. 118 passed, and consequently, the Company (and Utilities) completed its analysis based on available Treasury and legislative guidance relating to the Tax Act. In 2018, the Company re-measured certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future. For the period ended December 31, 2018, the net deferred tax liabilities decreased by $13.9 million ( $13.6 million at the Utilities) with the corresponding net adjustment that decreased deferred tax expense by $5.5 million ( $5.2 million at the Utilities) and increased the regulatory liability by $11.3 million . The decrease in deferred tax expense is included as a component of income tax expense and had the effect of decreasing the effective tax rate in 2018 from 22.1% to 20.0% ( 22.2% to 19.3% at the Utilities). |
Cash flows
Cash flows | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash flows | Note 13 · Cash flows Years ended December 31 2019 2018 2017 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates, net of amounts capitalized $ 107 $ 102 $ 83 Income taxes paid (including refundable credits) 56 72 55 Income taxes refunded (including refundable credits) 4 34 1 Hawaiian Electric consolidated Interest paid to non-affiliates, net of amounts capitalized 68 73 63 Income taxes paid (including refundable credits) 55 64 26 Income taxes refunded (including refundable credits) 4 31 — Supplemental disclosures of noncash activities HEI consolidated Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 64 59 38 Loans transferred from held for investment to held for sale (investing) — 1 41 Common stock issued (gross) for director and executive/management compensation (financing) 1 5 4 11 Obligations to fund low income housing investments, net (investing) 11 12 13 Transfer of retail repurchase agreements to deposit liabilities (financing) — 102 — Hawaiian Electric consolidated Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 62 44 38 HEI Consolidated and Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 9 14 18 Acquisition of Hawaiian Telcom’s interest in joint poles (investing) — 48 — 1 The amounts shown represent the market value of common stock issued for director and executive/management compensation and withheld to satisfy statutory tax liabilities. |
Regulatory restrictions on net
Regulatory restrictions on net assets | 12 Months Ended |
Dec. 31, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory restrictions on net assets | Note 14 · Regulatory restrictions on net assets The abilities of certain of HEI’s subsidiaries to pay dividends or make other distributions to HEI are subject to contractual and regulatory restrictions. Under the PUC Agreement, in the event that the consolidated common stock equity of the electric utility subsidiaries falls below 35% of the total capitalization of the electric utilities (including the current maturities of long-term debt, but excluding short-term borrowings), the electric utility subsidiaries would, absent PUC approval, be restricted in their payment of cash dividends to 80% of the earnings available for the payment of dividends in the current fiscal year and preceding five years, less the amount of dividends paid during that period. The PUC Agreement also provides that the foregoing dividend restriction shall not be construed as relinquishing any right the PUC may have to review the dividend policies of the electric utility subsidiaries. As of December 31, 2019 , the consolidated common stock equity of HEI’s electric utility subsidiaries was 56% of their total capitalization (as calculated for purposes of the PUC Agreement). As of December 31, 2019 , Hawaiian Electric and its subsidiaries had common stock equity of $2.0 billion of which approximately $825 million was not available for transfer to HEI in the form of dividends, loans or advances without regulatory approval. The ability of ASB to make capital distributions to HEI and other affiliates is restricted under federal law. Subject to a limited exception for stock redemptions that do not result in any decrease in ASB’s capital and would improve ASB’s financial condition, ASB is prohibited from declaring any dividends, making any other capital distributions, or paying a management fee to a controlling person if, following the distribution or payment, ASB would be deemed to be undercapitalized, significantly undercapitalized or critically undercapitalized. ASB is required to notify the FRB and OCC prior to making any capital distribution (including dividends) to HEI (through ASB Hawaii). All dividends are subject to review by the OCC and FRB and receipt of a letter from the FRB communicating the agencies’ non-objection to the payment of any dividend ASB proposes to declare and pay to ASB Hawaii and HEI. Generally, the FRB and OCC may disapprove or deny ASB’s request to make a capital distribution if the proposed distribution will cause ASB to become undercapitalized, or the proposed distribution raises safety and soundness concerns, or the proposed distribution violates a prohibition contained in any statute, regulation or agreement between ASB and the OCC. As of December 31, 2019 , in order to maintain its “well-capitalized” position, ASB could not transfer approximately $487 million of net assets to HEI. HEI and its subsidiaries are also subject to debt covenants, preferred stock resolutions and the terms of guarantees that could limit their respective abilities to pay dividends. The Company does not expect that the regulatory and contractual restrictions applicable to HEI and/or its subsidiaries will significantly affect the operations of HEI or its ability to pay dividends on its common stock. |
Significant group concentration
Significant group concentrations of credit risk | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Significant group concentrations of credit risk | Note 15 · Significant group concentrations of credit risk Most of the Company’s business activity is with customers located in the State of Hawaii. The Utilities are regulated operating electric public utilities engaged in the generation, purchase, transmission, distribution and sale of electricity on the islands of Oahu, Hawaii, Maui, Lanai and Molokai in the State of Hawaii. The Utilities provide the only electric public utility service on the islands they serve. The Utilities extend credit to customers, all of whom reside or conduct business in the State of Hawaii. See Note 3 of the Consolidated Financial Statements for a discussion of the Utilities’ major customers. The International Brotherhood of Electrical Workers Local 1260 represents roughly half of the Utilities’ workforce covered by a collective bargaining agreement that expires on October 31, 2021 . Most of ASB’s financial instruments are based in the State of Hawaii, except for the investment securities it owns. Substantially all real estate loans are collateralized by real estate in Hawaii. ASB’s policy is to require mortgage insurance on all real estate loans with a loan to appraisal ratio in excess of 80% at origination. Pacific Current’s investments are in the State of Hawaii since its strategy is focused on investing in non-regulated renewable energy and sustainable infrastructure in the State of Hawaii. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Note 16 · Fair value measurements 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 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. The fair value of the mortgage revenue bonds 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 . Residential and commercial loans are carried at the lower of cost or market and are valued using market observable pricing inputs, which are derived from third party loan sales and, therefore, are classified within Level 2 of the valuation hierarchy. 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. Since 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 . 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. MSRs 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 its own experience and expertise to arrive at a value. ASB uses the third-party value only to assess the reasonableness of its own estimate. Deposit liabilities . The fair value of fixed-maturity certificates of deposit was estimated by discounting the future cash flows using the rates currently offered for FHLB advances of similar remaining maturities. Deposit liabilities are classified in Level 2 of the valuation hierarchy. Other borrowings . For 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 risks, terms, and remaining maturities. Long-term debt-other than bank is classified in Level 2 of the valuation hierarchy. 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. 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. Estimated fair value (in thousands) Carrying or notional amount Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs Total December 31, 2019 Financial assets HEI consolidated Available-for-sale investment securities $ 1,232,826 $ — $ 1,204,229 $ 28,597 $ 1,232,826 Held-to-maturity investment securities 139,451 — 143,467 — 143,467 Stock in Federal Home Loan Bank 8,434 — 8,434 — 8,434 Loans, net 5,080,107 — 12,295 5,145,242 5,157,537 Mortgage servicing rights 9,101 — — 12,379 12,379 Derivative assets 25,179 — 300 — 300 Financial liabilities HEI consolidated Deposit liabilities 769,825 — 765,976 — 765,976 Short-term borrowings—other than bank 185,710 — 185,710 — 185,710 Other bank borrowings 115,110 — 115,107 — 115,107 Long-term debt, net—other than bank 1,964,365 2,156,927 2,156,927 Derivative liabilities 51,375 33 2,185 — 2,218 Hawaiian Electric consolidated Short-term borrowings 88,987 — 88,987 — 88,987 Long-term debt, net 1,497,667 — 1,670,189 — 1,670,189 December 31, 2018 Financial assets HEI consolidated Available-for-sale investment securities $ 1,388,533 $ — $ 1,364,897 $ 23,636 $ 1,388,533 Held-to-maturity investment securities 141,875 — 142,057 — 142,057 Stock in Federal Home Loan Bank 9,958 — 9,958 — 9,958 Loans, net 4,792,707 — 1,809 4,800,244 4,802,053 Mortgage servicing rights 8,062 — — 13,618 13,618 Derivative assets 10,180 — 91 — 91 Financial liabilities HEI consolidated Deposit liabilities 827,841 — 817,667 — 817,667 Short-term borrowings—other than bank 73,992 — 73,992 — 73,992 Other bank borrowings 110,040 — 110,037 — 110,037 Long-term debt, net—other than bank 1,879,641 — 1,904,261 — 1,904,261 Derivative liabilities 34,132 34 596 — 630 Hawaiian Electric consolidated Short-term borrowings 25,000 — 25,000 — 25,000 Long-term debt, net 1,418,802 — 1,443,968 — 1,443,968 Fair value measurements on a recurring basis. Assets and liabilities measured at fair value on a recurring basis were as follows: December 31 2019 2018 Fair value measurements using Fair value measurements using (in thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Available-for-sale investment securities (bank segment) Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ — $ 1,026,385 $ — $ — $ 1,161,416 $ — U.S. Treasury and federal agency obligations — 117,787 — — 154,349 — Corporate bonds — 60,057 — — 49,132 — Mortgage revenue bonds — — 28,597 — — 23,636 $ — $ 1,204,229 $ 28,597 $ — $ 1,364,897 $ 23,636 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 297 $ — $ — $ 91 $ — Forward commitments (bank segment) 1 — 3 — — — — $ — $ 300 $ — $ — $ 91 $ — Derivative liabilities Interest rate lock commitments (bank segment) 1 $ — $ — $ — $ — $ — $ — Forward commitments (bank segment) 1 33 12 — 34 9 — Interest rate swap (Other segment) 2 — 2,173 — — 587 — $ 33 $ 2,185 $ — $ 34 $ 596 $ — 1 Derivatives are carried at fair value in other assets or other liabilities in the balance sheets with changes in value included in mortgage banking income. 2 Derivatives are included in Other 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 years ended December 31, 2019 and 2018 . The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (in thousands) 2019 2018 Mortgage revenue bonds Balance, January 1 $ 23,636 $ 15,427 Principal payments received — — Purchases 4,961 8,209 Unrealized gain (loss) included in other comprehensive income — — Balance, December 31 $ 28,597 $ 23,636 ASB holds two mortgage revenue bonds 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 December 31, 2019 , the weighted average discount rate was 3.41% 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 using (in thousands) Balance Level 1 Level 2 Level 3 December 31, 2019 Loans $ 25 $ — $ — $ 25 December 31, 2018 Loans 77 — — 77 Real estate acquired in settlement of loans 186 — — 186 For 2019 and 2018 , 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) (dollars in thousands) Fair value Valuation technique Significant unobservable input Range Weighted December 31, 2019 Residential land $ 25 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) N/A (2) Total loans $ 25 December 31, 2018 Home equity lines of credit 77 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) N/A (2) Total loans $ 77 Real estate acquired in settlement of loans $ 186 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) N/A (2) (1) Represent percent of outstanding principal balance. (2) N/A - Not applicable. There is one asset 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. |
Quarterly information (unaudite
Quarterly information (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly information (unaudited) | Note 17 · Quarterly information (unaudited) Selected quarterly information was as follows: Quarters ended Years ended (in thousands, except per share amounts) March 31 June 30 Sept. 30 Dec. 31 December 31 HEI consolidated 2019 Revenues $ 661,615 $ 715,485 $ 771,535 $ 725,966 $ 2,874,601 Operating income 1 77,937 72,634 97,308 100,795 348,674 Net income 1 46,161 42,985 63,890 66,736 219,772 Net income for common stock 1 45,688 42,512 63,419 66,263 217,882 Basic earnings per common share 1,2 0.42 0.39 0.58 0.61 2.00 Diluted earnings per common share 1,3 0.42 0.39 0.58 0.61 1.99 Dividends per common share 0.32 0.32 0.32 0.32 1.28 2018 Revenues $ 645,874 $ 685,277 $ 768,048 $ 761,650 $ 2,860,849 Operating income 71,889 78,799 98,064 84,604 333,356 Net income 40,720 46,527 66,371 50,046 203,664 Net income for common stock 40,247 46,054 65,900 49,573 201,774 Basic earnings per common share 2 0.37 0.42 0.61 0.46 1.85 Diluted earnings per common share 3 0.37 0.42 0.60 0.45 1.85 Dividends per common share 0.31 0.31 0.31 0.31 1.24 Hawaiian Electric consolidated 2019 Revenues $ 578,495 $ 633,784 $ 688,330 $ 645,333 $ 2,545,942 Operating income 56,560 55,694 71,793 70,331 254,378 Net income 32,625 33,073 47,277 45,860 158,835 Net income for common stock 32,126 32,574 46,779 45,361 156,840 2018 Revenues $ 570,427 $ 608,126 $ 687,409 $ 680,563 2,546,525 Operating income 51,369 55,144 74,036 61,112 241,661 Net income 27,974 31,668 50,210 35,796 145,648 Net income for common stock 27,475 31,169 49,712 35,297 143,653 Note: HEI owns all of Hawaiian Electric’s common stock, therefore per share data for Hawaiian Electric is not meaningful. 1 Operating income for the fourth quarter of 2019 includes gains on property sales totaling $10.8 million , and net income and net income for common stock includes $7.9 million (or $0.07 per share (basic and diluted) at ASB’s 26.8% statutory tax rate). 2 The quarterly basic earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter. 3 The quarterly diluted earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter plus the dilutive incremental shares at quarter end. |
SCHEDULE I - CONDENSED FINANCIA
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) CONDENSED BALANCE SHEETS December 31 2019 2018 (dollars in thousands) Assets Cash and cash equivalents $ 953 $ 3,742 Accounts receivable 779 2,604 Notes receivable from subsidiaries 22,598 20,789 Property, plant and equipment, net 2,931 3,456 Deferred income tax assets 10,754 10,147 Other assets and intercompany receivables 21,770 11,963 Investments in subsidiaries, at equity 2,761,802 2,605,038 Total assets $ 2,821,587 $ 2,657,739 Liabilities and shareholders’ equity Liabilities Accounts payable $ 1,509 $ 2,001 Interest payable 3,041 3,476 Notes payable to subsidiaries — 34 Commercial paper 96,723 48,992 Long-term debt, net 399,064 398,874 Retirement benefits liability 29,367 29,565 Other 11,623 12,517 Total liabilities 541,327 495,459 Shareholders’ equity Preferred stock, no par value, authorized 10,000,000 shares; issued: none — — Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 108,973,328 1,678,257 1,669,267 Retained earnings 622,042 543,623 Accumulated other comprehensive loss (20,039 ) (50,610 ) Total shareholders’ equity 2,280,260 2,162,280 Total liabilities and shareholders’ equity $ 2,821,587 $ 2,657,739 SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) CONDENSED STATEMENTS OF INCOME Years ended December 31 2019 2018 2017 (in thousands) Revenues $ 777 $ 429 $ 798 Equity in net income of subsidiaries 246,005 226,972 187,097 Expenses: Operating, administrative and general 19,195 19,515 16,578 Depreciation of property, plant and equipment 570 597 548 Taxes, other than income taxes 570 509 496 Total expenses 20,335 20,621 17,622 Income before interest expense and income (taxes) benefits 226,447 206,780 170,273 Retirement defined benefits expense—other than service costs 442 674 1,119 Interest expense 17,930 12,664 9,389 Income before income benefits 208,075 193,442 159,765 Income benefits 9,807 8,332 5,532 Net income $ 217,882 $ 201,774 $ 165,297 HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) STATEMENTS OF COMPREHENSIVE INCOME STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY Incorporated by reference are HEI and Subsidiaries’ Statements of Consolidated Comprehensive Income and Consolidated Statements of Changes in Shareholders’ Equity in Part II, Item 8. SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) CONDENSED STATEMENTS OF CASH FLOWS Years ended December 31 2019 2018 2017 (in thousands) Net cash provided by operating activities $ 131,120 $ 135,470 $ 99,600 Cash flows from investing activities Increase in note receivable from subsidiary (1,187 ) (20,596 ) (70,000 ) Decrease in note receivable from subsidiary — — 66,391 Capital expenditures (47 ) (143 ) (317 ) Investments in subsidiaries (38,935 ) (71,970 ) (22,353 ) Other (1,001 ) 140 (177 ) Net cash used in investing activities (41,170 ) (92,569 ) (26,456 ) Cash flows from financing activities Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less — (30 ) 98 Net increase (decrease) in short-term borrowings with original maturities of three months or less 47,731 (14,000 ) 62,993 Proceeds from issuance of short-term debt — — 125,000 Repayment of short-term debt — (50,000 ) (75,000 ) Proceeds from issuance of long-term debt — 150,000 150,000 Repayment of long-term debt — — (200,000 ) Withheld shares for employee taxes on vested share-based compensation (997 ) (996 ) (3,828 ) Common stock dividends (139,463 ) (134,987 ) (134,873 ) Other (10 ) (848 ) (756 ) Net cash used in financing activities (92,739 ) (50,861 ) (76,366 ) Net decrease in cash and equivalents (2,789 ) (7,960 ) (3,222 ) Cash and cash equivalents, January 1 3,742 11,702 14,924 Cash and cash equivalents, December 31 $ 953 $ 3,742 $ 11,702 NOTES TO CONDENSED FINANCIAL INFORMATION Basis of Presentation The “Notes to Consolidated Financial Statements” in Part II, Item 8 should be read in conjunction with the above HEI (Parent Company) financial statements. All HEI subsidiaries are reflected in the Condensed Financial Statements under the equity method. Income taxes for equity method investments are included in “Equity in net income of subsidiaries.” Long-term debt The components of long-term debt, net, were as follows: December 31 2019 2018 (dollars in thousands) HEI 2.99% term loan, due 2022 $ 150,000 $ 150,000 HEI 5.67% senior note, due 2021 50,000 50,000 HEI 3.99% senior note, due 2023 50,000 50,000 HEI 4.58% senior notes, due 2025 50,000 50,000 HEI 4.72% senior notes, due 2028 100,000 100,000 Less unamortized debt issuance costs (936 ) (1,126 ) Long-term debt, net $ 399,064 $ 398,874 The aggregate payments of principal required within five years after December 31, 2019 on long-term debt are nil in 2020 , $50 million in 2021 , $150 million in 2022 , $50 million in 2023 , nil for 2024 , and $150 million thereafter. Indemnities As of December 31, 2019 , HEI has a General Agreement of Indemnity in favor of both Liberty Mutual Insurance Company (Liberty) and Travelers Casualty and Surety Company of America (Travelers) for losses in connection with any and all bonds, undertakings or instruments of guarantee and any renewals or extensions thereof executed by Liberty or Travelers, including, but not limited to, a $0.6 million self-insured United States Longshore & Harbor bond and a $0.7 million self-insured automobile bond. Income taxes The Company’s financial reporting policy for income tax allocations is based upon a separate entity concept whereby each subsidiary provides income tax expense (or benefits) as if each were a separate taxable entity. The difference between the aggregate separate tax return income tax provisions and the consolidated financial reporting income tax provision is charged or credited to HEI’s separate tax provision. Dividends from HEI subsidiaries In 2019 , 2018 and 2017 , cash dividends received from subsidiaries were $157 million , $154 million and $125 million , respectively. Supplemental disclosures of noncash activities In 2019 , 2018 and 2017 , $2.3 million , $2.3 million and $2.8 million , respectively, of HEI accounts receivable from ASB Hawaii were reduced with a corresponding reduction in HEI notes payable to ASB Hawaii in noncash transactions. In 2019 , 2018 and 2017 , $2.3 million , $2.3 million and $2.8 million , respectively, were contributed as equity by HEI into ASB Hawaii with a corresponding increase in HEI notes payable to ASB Hawaii in noncash transactions. In 2017, $3.6 million of HEI notes receivable from Hamakua Energy, LLC were converted to equity in a noncash transaction. Under the HEI DRIP, common stock dividends reinvested by shareholders in HEI common stock in noncash transactions was immaterial for 2019 , 2018 and 2017 as HEI satisfied the share purchase requirements of the DRIP in 2019 , 2018 and 2017 through open market purchases of its common stock rather than new issuances. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2019 , 2018 and 2017 Col. A Col. B Col. C Col. D Col. E (in thousands) Additions Description Balance at begin- ning of period Charged to costs and expenses Charged to other accounts Deductions Balance at end of period 2019 Allowance for uncollectible accounts – electric utility $ 1,480 $ 2,106 $ 795 (a) $ 3,004 (b) $ 1,377 Allowance for uncollectible interest – bank $ 373 $ — $ (99 ) $ — $ 274 Allowance for losses for loans – bank $ 52,119 $ 23,480 (c) $ 6,418 (a) $ 28,662 (b) $ 53,355 2018 Allowance for uncollectible accounts – electric utility $ 1,178 $ 2,474 $ (4,099 ) (a), (d) $ (1,927 ) (b),(d) $ 1,480 Allowance for uncollectible interest – bank $ 367 $ — $ 6 $ — $ 373 Allowance for losses for loans – bank $ 53,637 $ 14,745 (c) $ 4,254 (a) $ 20,517 (b) $ 52,119 2017 Allowance for uncollectible accounts – electric utility $ 1,121 $ 1,810 $ 785 (a) $ 2,538 (b),(d) $ 1,178 Allowance for uncollectible interest – bank $ 1,834 $ — $ — $ 1,467 $ 367 Allowance for losses for loans – bank $ 55,533 $ 10,901 (c) $ 4,016 (a) $ 16,813 (b) $ 53,637 Deferred tax valuation allowance – HEI $ 38 $ — $ — $ 38 $ — (a) Primarily recoveries. (b) Bad debts charged off. (c) Represents provision for loan losses. (d) Reclass (reversal) of allowance for one customer account into other long term assets in 2018 and 2017 were $(4,934) , and $841 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ significantly from those estimates. |
Use of estimates | Material estimates that are particularly susceptible to significant change for HEI and its subsidiaries (collectively, the Company) include the amounts reported as fair value for investment securities (ASB only); pension and other postretirement benefit obligations; contingencies and litigation; income taxes; regulatory assets and liabilities (Utilities only); electric utility unbilled revenues (Utilities only); asset retirement obligations (Utilities only); and allowance for loan losses (ASB only). |
Consolidation | The HEI consolidated financial statements include the accounts of HEI and its subsidiaries. The Hawaiian Electric consolidated financial statements include the accounts of Hawaiian Electric and its subsidiaries. When HEI or Hawaiian Electric has a controlling financial interest in another entity (usually, majority voting interest), that entity is consolidated. Investments in companies over which the Company or the Utilities have the ability to exercise significant influence, but not control, are accounted for using the equity method. The consolidated financial statements exclude variable interest entities (VIEs) when the Company or the Utilities are not the primary beneficiaries. In general, significant intercompany amounts are eliminated in consolidation |
Cash and cash equivalents | The Utilities consider cash on hand, deposits in banks, money market accounts, certificates of deposit, short-term commercial paper of non-affiliates and liquid investments (with original maturities of three months or less) to be cash and cash equivalents. The Company considers the same items to be cash and cash equivalents as well as ASB’s deposits with the Federal Home Loan Bank (FHLB), federal funds sold (excess funds that ASB loans to other banks overnight at the federal funds rate) and securities purchased under resale agreements with original maturities of three months or less. |
Restricted cash | The Utilities consider funds on deposit with trustees, which represent the undrawn proceeds from the issuance of special purpose revenue bonds to be restricted cash because these funds are available only to finance (or reimburse payment of) approved capital expenditures. |
Property, plant and equipment | Property, plant and equipment are reported at cost. Self-constructed electric utility plant includes engineering, supervision, administrative and general costs and an allowance for the cost of funds used during the construction period. These costs are recorded in construction in progress and are transferred to utility plant when construction is completed and the facilities are either placed in service or become useful for public utility purposes. Costs for betterments that make utility plant more useful, more efficient, of greater durability or of greater capacity are also capitalized. Upon the retirement or sale of electric utility plant, generally no gain or loss is recognized. The cost of the plant retired is charged to accumulated depreciation. Amounts collected from customers for cost of removal are included in regulatory liabilities. |
Depreciation | Depreciation is computed primarily using the straight-line method over the estimated lives of the assets being depreciated. Electric utility plant additions in the current year are depreciated beginning January 1 of the following year in accordance with rate-making. Electric utility plant has lives ranging from 16 to 88 years for production plant, from 10 to 79 years for transmission and distribution plant and from 5 to 65 years |
Retirement benefits | Pension and other postretirement benefit costs are charged primarily to expense and electric utility plant (in the case of the Utilities). Funding for the Company’s qualified pension plans (Plans) is based on actuarial assumptions adopted by the Pension Investment Committee administering the Plans. The participating employers contribute amounts to a master pension trust for the Plans in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA), including changes promulgated by the Pension Protection Act of 2006, and considering the deductibility of contributions under the Internal Revenue Code. The Company generally funds at least the net periodic pension cost during the year, subject to ERISA minimum and Internal Revenue Code limits and targeted funded status. Certain health care and/or life insurance benefits are provided to eligible retired employees and the employees’ beneficiaries and covered dependents. The Company generally funds the net periodic postretirement benefit costs other than pensions (except for executive life) for postretirement benefits other than pensions (OPEB), while maximizing the use of the most tax-advantaged funding vehicles, subject to cash flow requirements and reviews of the funded status with the consulting actuary. |
Environmental expenditures | The Company and the Utilities are subject to numerous federal and state environmental statutes and regulations. In general, environmental contamination treatment costs are charged to expense. Environmental costs are capitalized if the costs extend the life, increase the capacity, or improve the safety or efficiency of property; the costs mitigate or prevent future environmental contamination; or the costs are incurred in preparing the property for sale. Environmental costs are either capitalized or charged to expense when environmental assessments and/or remedial efforts are probable and the cost can be reasonably estimated. The Utilities review their sites and measure the liability quarterly by assessing a range of reasonably likely costs of each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. |
Income taxes | Deferred income tax assets and liabilities are established for the temporary differences between the financial reporting bases and the tax bases of the Company’s and the Utilities’ assets and liabilities at federal and state tax rates expected to be in effect when such deferred tax assets or liabilities are realized or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. HEI and the Utilities’ investment tax credits are deferred and amortized over the estimated useful lives of the properties to which the credits relate (and for the Utilities, this treatment is in accordance with Accounting Standards Codification (ASC) Topic 980, “Regulated Operations”). The Utilities are included in the consolidated income tax returns of HEI. However, income tax expense has been computed for financial statement purposes as if each utility filed a separate income tax return and Hawaiian Electric filed a consolidated Hawaiian Electric income tax return. Governmental tax authorities could challenge a tax return position taken by the Company. The Company and the Utilities use a “more-likely-than-not” recognition threshold and measurement standard for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. |
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 about market participant assumptions based on the best information available in the circumstances. These valuations are estimates at a specific point in time, based on relevant market information, information about the financial instrument and judgments regarding future expected loss experience, economic conditions, risk characteristics of various financial instruments and other factors. These estimates do not reflect any premium or discount that could result if the Company or the Utilities were to sell its entire holdings of a particular financial instrument at one time. Because no active trading market exists for a portion of the Company’s and the Utilities’ financial instruments, fair value estimates cannot be determined with precision. Changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses could have a significant effect on fair value estimates, but have not been considered in making such estimates. The Company and the Utilities group 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, real estate acquired in settlement of loans, goodwill and asset retirement obligations (AROs). |
Earnings per share (HEI only) | Basic earnings per share (EPS) is computed by dividing net income for common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that dilutive common shares for stock compensation is added to the denominator. |
Impairment of long-lived assets and long-lived assets to be disposed of | The Company and the Utilities review long-lived assets and certain identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. |
Recent accounting pronouncements | The most significant effect of the new standard relates to the recognition of new ROU assets and lease liabilities on the Company’s balance sheet for purchase power agreements and real estate operating leases. On adoption, the Company recognized additional lease liabilities of approximately $257 million for the Company and approximately $236 million for the Utilities ( $215 million related to PPAs), based on the present value of the remaining minimum rental payments, with corresponding ROU assets for existing operating leases, under current leasing standards. In determining the lease liability upon transition, the Company used the incremental borrowing rates as of the adoption date based on the remaining lease term and remaining lease payments. See Note 8 for more information. 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 Company and Utilities will adopt ASU No. 2016-13 using an effective date of January 1, 2020 and will apply the guidance using a modified retrospective basis with the cumulative effect of initially applying the amendments to be recognized in retained earnings as of January 1, 2020. The allowance for credit losses (ACL) is a material estimate of the Company. As a result of the change from an incurred loss model to a methodology that considers the credit loss over the expected life of the loan, the Company expects to record, upon completing its final analysis, an adjustment between $18 million to $22 million to increase the ACL, with a corresponding adjustment to reduce retained earnings as of January 1, 2020. The ACL is based on the composition, characteristics and quality of the loans and off balance sheet credit exposures as well as the prevailing economic conditions as of the adoption date. The increase to the ACL for the loan portfolio will result in a decrease to retained earnings and regulatory capital amounts and ratios. However, ASB expects to remain well capitalized under the regulatory framework after the adoption of ASU No. 2016-13. Based on the credit quality of the Company’s existing held-to-maturity and AFS investment securities portfolio, the Company will not recognize an ACL at adoption for those investments. The adoption of the new standard did not have a material impact to the Utilities’ customer and other accounts receivables and accrued unbilled revenue. Compensation-retirement benefits-defined benefit plans . In August 2018, the FASB issued ASU No. 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans,” which makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The new guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and requires new ones that the FASB considers pertinent. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020 . The Company early adopted ASU No. 2018-14, effective for the year ended December 31, 2019, and applied the amended disclosure requirements to all periods presented. See Note 10 for additional information regarding the Company’s employee benefit plans. Codification Improvements . In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which is intended to clarify certain issues related to the accounting for financial instruments. • With respect to Topic 326, Financial Instruments - Credit Losses , ASU No. 2019-04 allows entities to measure the allowance for credit losses on accrued interest receivable balances separately from other components of the amortized cost basis of associated financial assets, or to make an accounting policy election not to measure an allowance for credit losses on accrued interest receivable amounts if an entity writes off the uncollectible accrued interest receivable balance in a timely manner and makes certain disclosures. ASU No. 2019-04 also allows an entity to make an accounting policy election regarding the presentation and disclosure of accrued interest receivables and the related allowance for credit losses for those accrued interest receivables. ASU No. 2019-04 also clarifies certain issues related to transfers between classifications or categories for loans and debt securities, recoveries, variable interest rates and prepayments, vintage disclosures, and contractual extensions and renewal options. • With respect to Topic 815, Derivatives and Hedging , ASU No. 2019-04 provides amendments, among others, that address partial-term fair value hedges, fair value hedge basis adjustments, and certain transition requirements. • With respect to Topic 825, Financial Instruments , ASU No. 2019-04 clarifies the scope of the guidance and disclosure requirements with respect to recognizing and measuring financial instruments. The amended guidance in ASU No. 2019-04 is effective for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU No. 2019-04 in the first quarter of 2020 and the impact of the ASU on the Company’s consolidated financial statements was not material. |
Reclassifications | Certain reclassifications have been made to prior years’ financial statements to conform to the 2019 presentation, which did not affect previously reported results of operations. |
Electric utility | |
Regulation by the Public Utilities Commission of the State of Hawaii (PUC) | The Utilities are regulated by the PUC and account for the effects of regulation under FASB ASC Topic 980, “Regulated Operations.” As a result, the Utilities’ financial statements reflect assets, liabilities, revenues and expenses based on current cost-based rate-making regulations (see Note 3—“Regulatory assets and liabilities”). Their continued accounting under ASC Topic 980 generally requires that rates are established by an independent, third-party regulator; rates are designed to recover the costs of providing service; and it is reasonable to assume that rates can be charged to, and collected from, customers. The rate schedules of the Utilities include energy costs recovery clauses (ECRCs) under which electric rates are adjusted for changes in the weighted-average price paid for fuel oil and certain components of purchased power, and the relative amounts of company-generated power and purchased power. The rate schedules also include purchased power adjustment clauses (PPACs) under which the remaining purchase power expenses are recovered through surcharge mechanisms. The amounts collected through the ECRCs and PPACs are required to be reconciled quarterly. |
Accounts receivable | Accounts receivable are recorded at the invoiced amount. The Utilities generally assess a late payment charge on balances unpaid from the previous month. The allowance for doubtful accounts is the Utilities’ best estimate of the amount of probable credit losses in the Utilities’ existing accounts receivable. |
Electric utility revenues | Revenues related to electric service are generally recorded when service is rendered and include revenues applicable to energy consumed in the accounting period but not yet billed to the customers. The Utilities also record revenue under a decoupling mechanism. |
Repairs and maintenance costs | Repairs and maintenance costs for overhauls of generating units are generally expensed as they are incurred. |
Allowance for funds used during construction (AFUDC) | AFUDC is an accounting practice whereby the costs of debt and equity funds used to finance plant construction are credited on the statement of income and charged to construction in progress on the balance sheet. If a project under construction is delayed for an extended period of time, AFUDC on the delayed project may be stopped after assessing the causes of the delay and probability of recovery. |
Bank | |
Investment securities | Investments in debt securities are classified as held-to-maturity (HTM), trading or available-for-sale (AFS). ASB determines the appropriate classification at the time of purchase. Debt securities that ASB intends to and has the ability to hold to maturity are classified as HTM securities and reported at amortized cost. Marketable debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Marketable debt securities not classified as either HTM or trading securities are classified as AFS and reported at fair value. Unrealized gains and losses for AFS securities are excluded from earnings and reported on a net basis in accumulated other comprehensive income (AOCI) until realized. Interest income is recorded on an accrual basis. Discounts and premiums on securities are accreted or amortized into interest income using the interest method over the remaining contractual lives of the agency obligation securities and the estimated lives of the mortgage-backed securities adjusted for anticipated prepayments. ASB uses actual prepayment experience and estimates of future prepayments to determine the constant effective yield necessary to apply the interest method of income recognition. The discounts and premiums on the agency obligations portfolio are accreted or amortized on a prospective basis using expected contractual cash flows. The discounts and premiums on the mortgage-backed securities portfolio are accreted or amortized on a retrospective basis using changes in anticipated prepayments. This method requires a retrospective adjustment of the effective yield each time ASB changes the estimated life as if the new estimate had been known since the original acquisition date of the securities. Estimates of future prepayments are based on the underlying collateral characteristics and historic or projected prepayment behavior of each security. The specific identification method is used in determining realized gains and losses on the sales of securities. For securities that are not trading securities, individual securities are assessed for impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant. A security is impaired if the fair value of the security is less than its carrying value at the financial statement date. When a security is impaired, ASB determines whether this impairment is temporary or other-than-temporary. If ASB does not expect to recover the entire amortized cost basis of the security or there is a change in the expected cash flows, an OTTI exists. If ASB intends to sell the security, or will more likely than not be required to sell the security before recovery of its amortized cost, the OTTI must be recognized in earnings. If ASB does not intend to sell the security, and it is not more likely than not that ASB will be required to sell the security before recovery of its amortized cost, the OTTI must be separated into the amount representing the credit loss and the amount related to all other factors. The amount of OTTI related to the credit loss is recognized in earnings, while the remaining OTTI is recognized in AOCI. Based on ASB’s evaluation as of December 31, 2019 , 2018 and 2017 , there was no indicated impairment as ASB expects to collect the contractual cash flows for these investments. Stock in Federal Home Loan Bank (FHLB) is carried at cost and is reviewed at least quarterly for impairment, with valuation adjustments recognized in noninterest income. |
Loans | ASB carries loans at amortized cost less the allowance for loan losses, loan origination fees (net of direct loan origination costs), commitment fees and purchase premiums and discounts. Interest on loans is credited to income as it is earned. Discounts and premiums are accreted or amortized over the life of the loans using the interest method. Loan origination fees (net of direct loan origination costs) are deferred and recognized as an adjustment in yield over periods not exceeding the contractual life of the loan using the interest method or taken into income when the loan is paid off or sold. Nonrefundable commitment fees (net of direct loan origination costs, if applicable) received for commitments to originate or purchase loans are deferred and, if the commitment is exercised, recognized as an adjustment of yield over the life of the loan using the interest method. Nonrefundable commitment fees received for which the commitment expires unexercised are recognized as income upon expiration of the commitment. |
Loans held for sale, gain on sale of loans, and mortgage servicing assets and liabilities | Loans held for sale are stated at the lower of cost or estimated fair value on an aggregate basis. Premiums, discounts and net deferred loan fees are not amortized while a loan is classified as held for sale. A sale is recognized only when the consideration received is other than beneficial interests in the assets sold and control over the assets is transferred irrevocably to the buyer. Gains or losses on sales of loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the allocated basis of the loans sold. |
Allowance for loan losses | ASB maintains an allowance for loan losses to absorb losses inherent in its loan portfolio. The level of allowance for loan losses is based on a continuing assessment of existing risks in the loan portfolio, historical loss experience, changes in collateral values and current conditions (e.g., economic conditions, real estate market conditions and interest rate environment). The allowance for loan losses is allocated to loan types using both a formula-based approach applied to groups of loans and an analysis of certain individual loans for impairment. The formula-based approach emphasizes loss factors primarily derived from actual historical default and loss rates, which are combined with an assessment of certain qualitative factors to determine the allowance amounts allocated to the various loan categories. Adverse changes in any of these factors could result in higher charge-offs and provision for loan losses. ASB disaggregates its portfolio loans into portfolio segments for purposes of determining the allowance for loan losses. Commercial, commercial real estate, and commercial construction loans are defined as non-homogeneous loans and ASB utilizes a risk rating system for evaluating the credit quality of the loans. Non-homogeneous loans are also categorized into the regulatory asset quality classifications—Pass, Special Mention, Substandard, Doubtful, and Loss based on credit quality. ASB utilizes a numerical-based, risk rating “PD Model” that takes into consideration fiscal year-end financial information of the borrower and identified financial attributes including retained earnings, operating cash flows, interest coverage, liquidity and leverage that demonstrate a strong correlation with default to assign default probabilities at the borrower level. In addition, a loss given default (LGD) value is assigned to each loan to measure loss in the event of default based on loan specific features such as collateral that mitigates the amount of loss in the event of default. Residential, consumer and credit scored business loans are considered homogeneous loans, which are typically underwritten based on common, uniform standards. For the homogeneous portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. ASB supplements performance data with external credit bureau data and credit scores such as the Fair Isaac Corporation (FICO) score on a quarterly basis. ASB has built portfolio loss models for each major segment based on the combination of internal and external data to predict the probability of default at the loan level. ASB also considers qualitative factors in determining the allowance for loan losses. These include but are not limited to adjustments for changes in policies and procedures in underwriting, monitoring or collections, economic conditions, portfolio mix, lending and risk management personnel, results of internal audit and quality control reviews, collateral values and any concentrations of credit. The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in accounts payable and other liabilities in the consolidated balance sheets. The determination of the adequacy of the reserve is based upon an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the allowance for loan losses, as discussed above. Net adjustments to the reserve for unfunded commitments are included in other noninterest expense in the consolidated statements of income. The allowance for loan losses is based on currently available information and historical experience, and future adjustments may be required from time to time to the allowance for loan losses based on new information and changes that occur (e.g., due to changes in economic conditions, particularly in Hawaii). Actual losses could differ from management’s estimates, and these differences and subsequent adjustments could be material. |
Nonperforming loans | Loans are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if the probability of collection is insufficient to warrant further accrual. All interest that is accrued but not collected is reversed. A loan may be returned to accrual status if (i) principal and interest payments have been brought current and repayment of the remaining contractual principal and interest is expected to be made, (ii) the loan has otherwise become well-secured and in the process of collection, or (iii) the borrower has been making regularly scheduled payments in full for the prior six months and it is reasonably assured that the loan will be brought fully current within a reasonable period. Cash receipts on nonaccruing loans are generally applied to reduce the unpaid principal balance. Loans considered to be uncollectible are charged-off against the allowance for loan losses. The amount and timing of charge-offs on loans includes consideration of the loan type, length of delinquency, insufficiency of collateral value, lien priority and the overall financial condition of the borrower. Recoveries on loans previously charged-off are credited back to the allowance for loan losses. Loans that have been charged-off against the allowance for loan losses are periodically monitored to evaluate whether further adjustments to the allowance are necessary. Loans in the commercial and commercial real estate portfolio are charged-off when the loan is risk rated “Doubtful” or “Loss.” The loan or a portion thereof is determined to be uncollectible after considering the borrower’s overall financial condition and collateral deficiency. A commercial or commercial real estate loan is considered uncollectible when: (a) the borrower is delinquent in principal or interest 90 days or more; (b) significant improvement in the borrower’s repayment capacity is doubtful; and/or (c) collateral value is insufficient to cover outstanding indebtedness and no other viable assets or repayment sources exist. Loans in the residential mortgage and home equity portfolios are charged-off when the loan or a portion thereof is determined to be uncollectible after considering the borrower’s overall financial condition and collateral deficiency. Such loan is considered uncollectible when: (a) the borrower is delinquent in principal or interest 180 days or more; (b) it is probable that collateral value is insufficient to cover outstanding indebtedness and no other viable assets or repayment sources exist; (c) notification of the borrower’s bankruptcy is received or the borrower’s debt is discharged in bankruptcy and the loan is not reaffirmed; or (d) in cases where ASB is in a subordinate position to other debt, the senior lien holder has foreclosed and ASB’s junior lien is extinguished. Other consumer loans are generally charged-off when the balance becomes 120 days delinquent. |
Loans modified in a troubled debt restructuring | Loans are considered to have been modified in a troubled debt restructuring (TDR) when, due to a borrower’s financial difficulties, ASB makes concessions to the borrower that it would not otherwise consider for a non-troubled borrower. Modifications may include interest rate reductions, interest only payments for an extended period of time, protracted terms such as amortization and maturity beyond the customary length of time found in the normal market place, and other actions intended to minimize economic loss and to provide alternatives to foreclosure or repossession of collateral. Generally, a nonaccrual loan that has been modified in a TDR remains on nonaccrual status until the borrower has demonstrated sustained repayment performance for a period of six consecutive months. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, or there is reasonable doubt over the full collectability of principal and interest, the loan remains on nonaccrual status. |
Real estate acquired in settlement of loans | ASB records real estate acquired in settlement of loans at fair value, less estimated selling expenses. ASB obtains appraisals based on recent comparable sales to assist management in estimating the fair value of real estate acquired in settlement of loans. Subsequent declines in value are charged to expense through a valuation allowance. Costs related to holding real estate are charged to operations as incurred. |
Goodwill | Goodwill is initially recorded as the excess of the purchase price over the fair value of the net assets acquired in a business combination and is subsequently evaluated at least annually for impairment during the fourth quarter. At December 31, 2019 and 2018 , the amount of goodwill was $82.2 million . The goodwill relates to ASB and is the Company’s only intangible asset with an indefinite useful life. |
Mortgage banking | Mortgage loans held for sale are stated at the lower of cost or estimated fair value on an aggregate basis. Premiums, discounts and net deferred loan fees are not amortized while a loan is classified as held-for-sale. A sale is recognized only when the consideration received is other than beneficial interests in the assets sold and control over the assets is transferred irrevocably to the buyer. Gains or losses on sales of loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the allocated basis of the loans sold. ASB is obligated to subsequently repurchase a loan if the purchaser discovers a standard representation or warranty violation such as noncompliance with eligibility requirements, customer fraud or servicing violations. This primarily occurs during a loan file review. ASB considers and records a reserve for loan repurchases if appropriate. ASB recognizes a mortgage servicing asset when a mortgage loan is sold with servicing rights retained. This mortgage servicing right (MSR) is initially capitalized at its presumed fair value based on market data at the time of sale and accounted for in subsequent periods at the lower of amortized cost or fair value. Mortgage servicing assets or liabilities are included as a component of gain on sale of loans. Under ASC Topic 860, “Transfers and Servicing,” ASB amortizes the MSRs in proportion to and over the period of estimated net servicing income and assess for impairment at each reporting date. 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 primarily 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. 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. Because observable market prices with exact terms and conditions may not be readily available, ASB compares the fair value of MSRs to an estimated value calculated by an independent third-party on a semi-annual basis. The third-party relies on both published and unpublished sources of market related assumptions and its own experience and expertise to arrive at a value. ASB uses the third-party value only to assess the reasonableness of fair value generated by the valuation model. 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. Loan servicing fee income represents income earned for servicing mortgage loans owned by investors. It includes mortgage servicing fees and other ancillary servicing income, net of guaranty fees. Servicing fees are generally calculated on the outstanding principal balances of the loans serviced and are recorded as income when earned. |
Tax credit investments | ASB invests in limited liability entities formed to operate qualifying affordable housing projects. The affordable housing investments provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. As a limited partner, ASB has no significant influence over the operations. These investments are initially recorded at the initial capital contribution with a liability recognized for the commitment to contribute additional capital over the term of the investment. ASB uses the proportional amortization method of accounting for its investments. Under the proportional amortization method, ASB amortizes the cost of its investments in proportion to the tax credits and other tax benefits it receives. The amortization, tax credits and tax benefits are reported as a component of income tax expense. For these limited liability entities, ASB assesses whether it is the primary beneficiary of the limited liability entity, which is a variable interest entity (VIE). The primary beneficiary of a VIE is determined to be the party that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Generally, ASB, as a limited partner, is not deemed to be the primary beneficiary as it does not meet the power criterion, i.e., no power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and no direct ability to unilaterally remove the general partner. All tax credit investments are evaluated for potential impairment at least annually, or more frequently, when events or conditions indicate that it is deemed probable that ASB will not recover its investment. If an investment is determined to be impaired, it is written down to its estimated fair value and the new cost basis of the investment is not adjusted for subsequent recoveries in value. As of December 31, 2019 , ASB did not have any impairment losses resulting from forfeiture or ineligibility of tax credits or other circumstances related to its low-income housing tax credit (LIHTC) investments. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of amounts in income tax expense related to investments in qualifying affordable housing projects | The table below summarizes the amounts in income tax expense related to ASB’s LIHTC investments: Years ended December 31 2019 2018 2017 (in millions) Amounts in income taxes related to low-income housing tax credit investments Amortization recognized in the provision for income taxes $ (7.9 ) $ (7.7 ) $ (7.4 ) Tax credits and other tax benefits recognized in the provision for income taxes 11.9 10.9 10.7 Net benefit to income tax expense $ 4.0 $ 3.2 $ 3.3 |
Segment financial information (
Segment financial information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment financial information | Segment financial information was as follows: (in thousands) Electric utility Bank Other Total 2019 Revenues from external customers $ 2,545,865 $ 328,570 $ 166 $ 2,874,601 Intersegment revenues (eliminations) 77 — (77 ) — Revenues 2,545,942 328,570 89 2,874,601 Depreciation and amortization 245,362 28,675 4,076 278,113 Interest expense, net 70,842 18,440 20,057 109,339 Income (loss) before income taxes 197,140 112,034 (37,765 ) 271,409 Income taxes (benefit) 38,305 23,061 (9,729 ) 51,637 Net income (loss) 158,835 88,973 (28,036 ) 219,772 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income (loss) for common stock 156,840 88,973 (27,931 ) 217,882 Capital expenditures 419,898 24,175 13,447 457,520 Assets (at December 31, 2019) 6,388,682 7,233,017 123,552 13,745,251 2018 Revenues from external customers $ 2,546,472 $ 314,275 $ 102 $ 2,860,849 Intersegment revenues (eliminations) 53 — (53 ) — Revenues 2,546,525 314,275 49 2,860,849 Depreciation and amortization 230,228 21,443 3,958 255,629 Interest expense, net 73,348 15,539 15,329 104,216 Income (loss) before income taxes 180,426 106,578 (32,543 ) 254,461 Income taxes (benefit) 34,778 24,069 (8,050 ) 50,797 Net income (loss) 145,648 82,509 (24,493 ) 203,664 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income (loss) for common stock 143,653 82,509 (24,388 ) 201,774 Capital expenditures 1 415,264 72,666 18,840 537,369 Assets (at December 31, 2018) 5,967,503 7,027,894 108,654 13,104,051 2017 Revenues from external customers $ 2,257,455 $ 297,640 $ 530 $ 2,555,625 Intersegment revenues (eliminations) 111 — (111 ) — Revenues 2,257,566 297,640 419 2,555,625 Depreciation and amortization 201,282 19,416 1,300 221,998 Interest expense, net 69,637 12,156 9,335 91,128 Income (loss) before income taxes 205,145 98,716 (27,281 ) 276,580 Income taxes (benefit) 83,199 31,719 (5,525 ) 109,393 Net income (loss) 121,946 66,997 (21,756 ) 167,187 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income (loss) for common stock 119,951 66,997 (21,651 ) 165,297 Capital expenditures 1 376,865 53,272 317 495,187 Assets (at December 31, 2017) 5,630,613 6,798,659 104,888 12,534,160 1 Contributions in aid of construction balances are included in capital expenditures. |
Electric utility segment (Table
Electric utility segment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Electric utility subsidiary | |
Schedule of consolidating statements of income | Statements of Income and Comprehensive Income Data Years ended December 31 2019 2018 2017 (in thousands) Interest and dividend income Interest and fees on loans $ 233,632 $ 220,463 $ 207,255 Interest and dividends on investment securities 32,922 37,762 28,823 Total interest and dividend income 266,554 258,225 236,078 Interest expense Interest on deposit liabilities 16,830 13,991 9,660 Interest on other borrowings 1,610 1,548 2,496 Total interest expense 18,440 15,539 12,156 Net interest income 248,114 242,686 223,922 Provision for loan losses 23,480 14,745 10,901 Net interest income after provision for loan losses 224,634 227,941 213,021 Noninterest income Fees from other financial services 19,275 18,937 22,796 Fee income on deposit liabilities 20,877 21,311 22,204 Fee income on other financial products 6,507 7,052 7,205 Bank-owned life insurance 7,687 5,057 5,539 Mortgage banking income 4,943 1,493 2,201 Gain on sale of real estate 10,762 — — Gains on sale of investment securities, net 653 — — Other income, net 2,074 2,200 1,617 Total noninterest income 72,778 56,050 61,562 Noninterest expense Compensation and employee benefits 103,009 98,387 94,931 Occupancy 21,272 17,073 16,699 Data processing 15,306 14,268 13,280 Services 10,239 10,847 10,994 Equipment 8,760 7,186 7,232 Office supplies, printing and postage 5,512 6,134 6,182 Marketing 4,490 3,567 3,501 FDIC insurance 1,204 2,713 2,904 Other expense 15,586 17,238 20,144 Total noninterest expense 185,378 177,413 175,867 Income before income taxes 112,034 106,578 98,716 Income taxes 23,061 24,069 31,719 Net income 88,973 82,509 66,997 Other comprehensive income (loss), net of taxes 29,406 (7,119 ) (3,139 ) Comprehensive income $ 118,379 $ 75,390 $ 63,858 Reconciliation to amounts per HEI Consolidated Statements of Income*: Years ended December 31 2019 2018 2017 (in thousands) Interest and dividend income $ 266,554 $ 258,225 $ 236,078 Noninterest income 72,778 56,050 61,562 Less: Gain on sale of real estate (10,762 ) — — *Revenues-Bank 328,570 314,275 297,640 Total interest expense 18,440 15,539 12,156 Provision for loan losses 23,480 14,745 10,901 Noninterest expense 185,378 177,413 175,867 Less: Retirement defined benefits credit (expense)—other than service costs 472 (1,657 ) (820 ) Add: Gain on sale of real estate (10,762 ) — — *Expenses-Bank 217,008 206,040 198,104 *Operating income-Bank 111,562 108,235 99,536 Add back: Retirement defined benefits expense (credit)—other than service costs (472 ) 1,657 820 Income before income taxes $ 112,034 $ 106,578 $ 98,716 |
Schedule of consolidating balance sheets | Balance Sheets Data December 31 2019 2018 (in thousands) Assets Cash and due from banks $ 129,770 $ 122,059 Interest-bearing deposits 48,628 4,225 Investment securities Available-for-sale, at fair value 1,232,826 1,388,533 Held-to-maturity, at amortized cost (fair value of $143,467 and $142,057 at December 31, 2019 and 2018, respectively) 139,451 141,875 Stock in Federal Home Loan Bank, at cost 8,434 9,958 Loans held for investment 5,121,176 4,843,021 Allowance for loan losses (53,355 ) (52,119 ) Net loans 5,067,821 4,790,902 Loans held for sale, at lower of cost or fair value 12,286 1,805 Other 511,611 486,347 Goodwill 82,190 82,190 Total assets $ 7,233,017 $ 7,027,894 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 1,909,682 $ 1,800,727 Deposit liabilities–interest-bearing 4,362,220 4,358,125 Other borrowings 115,110 110,040 Other 146,954 124,613 Total liabilities 6,533,966 6,393,505 Commitments and contingencies Common stock 1 1 Additional paid in capital 349,453 347,170 Retained earnings 358,259 325,286 Accumulated other comprehensive loss, net of tax benefits Net unrealized gains (losses) on securities $ 2,481 $ (24,423 ) Retirement benefit plans (11,143 ) (8,662 ) (13,645 ) (38,068 ) Total shareholder’s equity 699,051 634,389 Total liabilities and shareholder’s equity $ 7,233,017 $ 7,027,894 December 31 2019 2018 (in thousands) Other assets Bank-owned life insurance $ 157,465 $ 151,172 Premises and equipment, net 204,449 214,415 Accrued interest receivable 19,365 20,140 Mortgage servicing rights 9,101 8,062 Low-income housing investments 66,302 67,626 Real estate acquired in settlement of loans, net — 406 Other 54,929 24,526 $ 511,611 $ 486,347 Other liabilities Accrued expenses $ 45,822 $ 54,084 Federal and state income taxes payable 14,996 2,012 Cashier’s checks 23,647 26,906 Advance payments by borrowers 10,486 10,183 Other 52,003 31,428 $ 146,954 $ 124,613 |
Hawaiian Electric Company, Inc. and Subsidiaries | |
Electric utility subsidiary | |
Schedule of regulatory assets | Regulatory assets were as follows: December 31 2019 2018 (in thousands) Retirement benefit plans (balance primarily varies with plans’ funded statuses) $ 554,485 $ 624,126 Income taxes (1-55 years) 102,612 114,076 Decoupling revenue balancing account and RAM (1-2 years) — 49,560 Unamortized expense and premiums on retired debt and equity issuances (1-20 years; 1-19 years remaining) 10,228 10,065 Vacation earned, but not yet taken (1 year) 12,535 10,820 Other (1-39 years remaining) 35,220 24,779 Total regulatory assets $ 715,080 $ 833,426 Included in: Current assets $ 30,710 $ 71,016 Long-term assets 684,370 762,410 Total regulatory assets $ 715,080 $ 833,426 |
Schedule of regulatory liabilities | Regulatory liabilities were as follows: December 31 2019 2018 (in thousands) Cost of removal in excess of salvage value (1-60 years) $ 521,977 $ 491,006 Income taxes (1-55 years) 386,990 413,339 Decoupling revenue balancing account and RAM (1-2 years) 16,370 — Retirement benefit plans (balance primarily varies with plans’ funded statuses) 21,707 19,129 Other (1-19 years remaining) 25,266 26,762 Total regulatory liabilities $ 972,310 $ 950,236 Included in: Current liabilities $ 30,724 $ 17,977 Long-term liabilities 941,586 932,259 Total regulatory liabilities $ 972,310 $ 950,236 |
Schedule of voluntary liquidation and redemption prices of cumulative preferred stock | The following series of cumulative preferred stock are redeemable only at the option of the respective company at the following prices in the event of voluntary liquidation or redemption: December 31, 2019 Voluntary liquidation price Redemption price Series C, D, E, H, J and K (Hawaiian Electric) $ 20 $ 21 I (Hawaiian Electric) 20 20 G (Hawaii Electric Light) 100 100 H (Maui Electric) 100 100 |
Schedule of purchases from all IPPs | Purchases from all IPPs were as follows: Years ended December 31 2019 2018 2017 (in millions) Kalaeloa $ 214 $ 216 $ 180 AES Hawaii 139 140 140 HPOWER 76 69 67 Puna Geothermal Venture — 15 38 Hamakua Energy 68 56 35 Wind IPPs 95 107 97 Solar IPPs 36 29 27 Other IPPs 1 5 7 3 Total IPPs $ 633 $ 639 $ 587 1 Includes hydro power and other PPAs |
Schedule of changes in asset retirement obligation | Changes to the ARO liability included in “Other liabilities” on Hawaiian Electric’s balance sheet were as follows: (in thousands) 2019 2018 Balance, January 1 $ 8,426 $ 6,035 Accretion expense 312 282 Liabilities incurred 1,594 1,058 Liabilities settled (8 ) (74 ) Revisions in estimated cash flows — 1,125 Balance, December 31 $ 10,324 $ 8,426 |
Schedule of net annual incremental amounts proposed to be collected (refunded) | The net annual incremental amounts approved to be collected (refunded) from June 1, 2019 through May 31, 2020 are as follows: (in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Total 2019 Annual incremental RAM adjusted revenues,net of changes in Tax Act adjustment* $ 6.5 $ 1.1 $ 5.4 $ 13.0 Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery (12.2 ) (2.0 ) 0.8 (13.4 ) Performance Incentive Mechanisms (net) (1.3 ) — (0.4 ) (1.7 ) Net annual incremental amount to be collected (refunded) under the tariffs $ (7.0 ) $ (0.9 ) $ 5.8 $ (2.1 ) * The 2017 Tax Cuts and Jobs Act (the Tax Act) had two incremental impacts in 2019. First, the 2019 RAM calculation for all of the Utilities incorporated additional amortization of the regulatory liability associated with certain deferred taxes. Secondly, Maui Electric incorporated a $2.8 million adjustment in its 2018 annual decoupling filing related to the Tax Act which is not recurring in 2019. |
Schedule of consolidating statements of income | Consolidating statement of income Year ended December 31, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 1,803,698 364,590 378,202 — (548 ) [1] $ 2,545,942 Expenses Fuel oil 494,728 84,565 141,416 — — 720,709 Purchased power 494,215 90,989 48,052 — — 633,256 Other operation and maintenance 319,771 76,091 85,875 — — 481,737 Depreciation 143,470 41,812 30,449 — — 215,731 Taxes, other than income taxes 170,979 33,787 35,365 — — 240,131 Total expenses 1,623,163 327,244 341,157 — — 2,291,564 Operating income 180,535 37,346 37,045 — (548 ) 254,378 Allowance for equity funds used during construction 9,955 816 1,216 — — 11,987 Equity in earnings of subsidiaries 43,167 — — — (43,167 ) [2] — Retirement defined benefits expense—other than service costs (2,287 ) (422 ) (127 ) — — (2,836 ) Interest expense and other charges, net (51,199 ) (10,741 ) (9,450 ) — 548 [1] (70,842 ) Allowance for borrowed funds used during construction 3,666 342 445 — — 4,453 Income before income taxes 183,837 27,341 29,129 — (43,167 ) 197,140 Income taxes 25,917 5,990 6,398 — — 38,305 Net income 157,920 21,351 22,731 — (43,167 ) 158,835 Preferred stock dividends of subsidiaries — 534 381 — — 915 Net income attributable to Hawaiian Electric 157,920 20,817 22,350 — (43,167 ) 157,920 Preferred stock dividends of Hawaiian Electric 1,080 — — — — 1,080 Net income for common stock $ 156,840 20,817 22,350 — (43,167 ) $ 156,840 Consolidating statement of income Year ended December 31, 2017 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 1,598,504 333,467 325,678 — (83 ) [1] $ 2,257,566 Expenses Fuel oil 408,204 63,894 115,670 — — 587,768 Purchased power 454,189 87,772 44,673 — — 586,634 Other operation and maintenance 274,391 66,184 71,332 — — 411,907 Depreciation 130,889 38,741 23,154 — — 192,784 Taxes, other than income taxes 152,933 31,184 30,832 — — 214,949 Total expenses 1,420,606 287,775 285,661 — — 1,994,042 Operating income 177,898 45,692 40,017 — (83 ) 263,524 Allowance for equity funds used during construction 10,896 554 1,033 — — 12,483 Equity in earnings of subsidiaries 38,057 — — — (38,057 ) [2] — Retirement defined benefits expense—other than service costs (5,049 ) (93 ) (861 ) — — (6,003 ) Interest expense and other charges, net (48,277 ) (11,799 ) (9,644 ) — 83 [1] (69,637 ) Allowance for borrowed funds used during construction 4,089 238 451 — — 4,778 Income before income taxes 177,614 34,592 30,996 — (38,057 ) 205,145 Income taxes 56,583 13,912 12,704 — — 83,199 Net income 121,031 20,680 18,292 — (38,057 ) 121,946 Preferred stock dividends of subsidiaries — 534 381 — — 915 Net income attributable to Hawaiian Electric 121,031 20,146 17,911 — (38,057 ) 121,031 Preferred stock dividends of Hawaiian Electric 1,080 — — — — 1,080 Net income for common stock $ 119,951 20,146 17,911 — (38,057 ) $ 119,951 Consolidating statement of income Year ended December 31, 2018 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 1,802,550 375,493 368,700 — (218 ) [1] $ 2,546,525 Expenses Fuel oil 523,706 90,792 146,030 — — 760,528 Purchased power 494,450 95,838 49,019 — — 639,307 Other operation and maintenance 313,346 70,396 77,749 — — 461,491 Depreciation 137,410 40,235 25,981 — — 203,626 Taxes, other than income taxes 170,363 34,850 34,699 — — 239,912 Total expenses 1,639,275 332,111 333,478 — — 2,304,864 Operating income 163,275 43,382 35,222 — (218 ) 241,661 Allowance for equity funds used during construction 9,208 478 1,191 — — 10,877 Equity in earnings of subsidiaries 45,393 — — — (45,393 ) [2] — Retirement defined benefits expense—other than service costs (2,649 ) (417 ) (565 ) — — (3,631 ) Interest expense and other charges, net (52,180 ) (11,836 ) (9,550 ) — 218 [1] (73,348 ) Allowance for borrowed funds used during construction 4,019 276 572 — — 4,867 Income before income taxes 167,066 31,883 26,870 — (45,393 ) 180,426 Income taxes 22,333 6,868 5,577 — — 34,778 Net income 144,733 25,015 21,293 — (45,393 ) 145,648 Preferred stock dividends of subsidiaries — 534 381 — — 915 Net income attributable to Hawaiian Electric 144,733 24,481 20,912 — (45,393 ) 144,733 Preferred stock dividends of Hawaiian Electric 1,080 — — — — 1,080 Net income for common stock $ 143,653 24,481 20,912 — (45,393 ) $ 143,653 |
Schedule of consolidating statements of comprehensive income | Consolidating statement of comprehensive income Year ended December 31, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Net income for common stock $ 156,840 20,817 22,350 — (43,167 ) $ 156,840 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Net gains (losses) arising during the period, net of taxes 5,249 373 (204 ) — (169 ) [1] 5,249 Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 9,550 1,455 1,182 — (2,637 ) [1] 9,550 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (16,177 ) (1,840 ) (1,152 ) — 2,992 [1] (16,177 ) Other comprehensive loss, net of tax benefits (1,378 ) (12 ) (174 ) — 186 (1,378 ) Comprehensive income attributable to common shareholder $ 155,462 20,805 22,176 — (42,981 ) $ 155,462 Consolidating statement of comprehensive income Year ended December 31, 2017 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Net income for common stock $ 119,951 20,146 17,911 — (38,057 ) $ 119,951 Other comprehensive income (loss), net of taxes: Derivatives qualified as cash flow hedges: Reclassification adjustment to net income, net of tax benefits 454 — — — — 454 Retirement benefit plans: Net gains arising during the period, net of taxes 63,105 3,093 7,329 — (10,422 ) [1] 63,105 Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 14,477 1,903 1,619 — (3,522 ) [1] 14,477 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (78,724 ) (4,994 ) (9,003 ) — 13,997 [1] (78,724 ) Other comprehensive income (loss), net of taxes (688 ) 2 (55 ) — 53 (688 ) Comprehensive income attributable to common shareholder $ 119,263 20,148 17,856 — (38,004 ) $ 119,263 Consolidating statement of comprehensive income Year ended December 31, 2018 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Net income for common stock $ 143,653 24,481 20,912 — (45,393 ) $ 143,653 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Net losses arising during the period, net of tax benefits (26,019 ) (6,090 ) (5,004 ) — 11,094 [1] (26,019 ) Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 19,012 2,819 2,423 — (5,242 ) [1] 19,012 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes 8,325 3,305 2,788 — (6,093 ) [1] 8,325 Other comprehensive income, net of taxes 1,318 34 207 — (241 ) 1,318 Comprehensive income attributable to common shareholder $ 144,971 24,515 21,119 — (45,634 ) $ 144,971 |
Schedule of consolidating balance sheets | Consolidating balance sheet December 31, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 42,598 5,606 3,612 — — $ 51,816 Plant and equipment 4,765,362 1,313,727 1,161,199 — — 7,240,288 Less accumulated depreciation (1,591,241 ) (574,615 ) (524,301 ) — — (2,690,157 ) Construction in progress 165,137 9,993 17,944 — — 193,074 Utility property, plant and equipment, net 3,381,856 754,711 658,454 — — 4,795,021 Nonutility property, plant and equipment, less accumulated depreciation 5,310 114 1,532 — — 6,956 Total property, plant and equipment, net 3,387,166 754,825 659,986 — — 4,801,977 Investment in wholly-owned subsidiaries, at equity 591,969 — — — (591,969 ) [2] — Current assets Cash and cash equivalents 2,239 6,885 1,797 101 — 11,022 Restricted cash 30,749 123 — — — 30,872 Advances to affiliates 27,700 8,000 — — (35,700 ) [1] — Customer accounts receivable, net 105,454 24,520 22,816 — — 152,790 Accrued unbilled revenues, net 83,148 17,071 17,008 — — 117,227 Other accounts receivable, net 18,396 1,907 1,960 — (10,695 ) [1] 11,568 Fuel oil stock, at average cost 69,003 8,901 14,033 — — 91,937 Materials and supplies, at average cost 34,876 8,313 17,513 — — 60,702 Prepayments and other 88,334 3,725 24,921 — — 116,980 Regulatory assets 27,689 1,641 1,380 — — 30,710 Total current assets 487,588 81,086 101,428 101 (46,395 ) 623,808 Other long-term assets Operating lease right-of-use assets 174,886 1,537 386 — — 176,809 Regulatory assets 476,390 109,163 98,817 — — 684,370 Other 69,010 15,493 17,215 — — 101,718 Total other long-term assets 720,286 126,193 116,418 — — 962,897 Total assets $ 5,187,009 962,104 877,832 101 (638,364 ) $ 6,388,682 Capitalization and liabilities Capitalization Common stock equity $ 2,047,352 298,998 292,870 101 (591,969 ) [2] $ 2,047,352 Cumulative preferred stock–not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,006,737 206,416 188,561 — — 1,401,714 Total capitalization 3,076,382 512,414 486,431 101 (591,969 ) 3,483,359 Current liabilities Current portion of operating lease liabilities 63,582 94 31 — — 63,707 Current portion of long-term debt, net 61,958 13,995 20,000 — — 95,953 Short-term borrowings-non-affiliate 88,987 — — — — 88,987 Short-term borrowings-affiliate 8,000 — 27,700 — (35,700 ) [1] — Accounts payable 139,056 25,629 23,085 — — 187,770 Interest and preferred dividends payable 14,759 3,115 2,900 — (46 ) [1] 20,728 Taxes accrued 143,522 32,541 31,929 — — 207,992 Regulatory liabilities 13,363 9,454 7,907 — — 30,724 Other 51,295 11,362 15,297 — (10,649 ) [1] 67,305 Total current liabilities 584,522 96,190 128,849 — (46,395 ) 763,166 Deferred credits and other liabilities Operating lease liabilities 111,598 1,442 360 — — 113,400 Deferred income taxes 265,864 53,534 57,752 — — 377,150 Regulatory liabilities 664,894 178,474 98,218 — — 941,586 Unamortized tax credits 86,852 16,196 14,820 — — 117,868 Defined benefit pension and other postretirement benefit plans liability 339,471 69,928 69,364 — — 478,763 Other 57,426 33,926 22,038 — — 113,390 Total deferred credits and other liabilities 1,526,105 353,500 262,552 — — 2,142,157 Total capitalization and liabilities $ 5,187,009 962,104 877,832 101 (638,364 ) $ 6,388,682 Consolidating balance sheet December 31, 2018 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 40,449 5,606 3,612 — — $ 49,667 Plant and equipment 4,456,090 1,259,553 1,094,028 — — 6,809,671 Less accumulated depreciation (1,523,861 ) (547,848 ) (505,633 ) — — (2,577,342 ) Construction in progress 193,677 8,781 30,687 — — 233,145 Utility property, plant and equipment, net 3,166,355 726,092 622,694 — — 4,515,141 Nonutility property, plant and equipment, less accumulated depreciation 5,314 115 1,532 — — 6,961 Total property, plant and equipment, net 3,171,669 726,207 624,226 — — 4,522,102 Investment in wholly-owned subsidiaries, at equity 576,838 — — — (576,838 ) [2] — Current assets Cash and cash equivalents 16,732 15,623 3,421 101 — 35,877 Customer accounts receivable, net 125,960 26,483 25,453 — — 177,896 Accrued unbilled revenues, net 88,060 17,051 16,627 — — 121,738 Other accounts receivable, net 21,962 3,131 3,033 — (21,911 ) [1] 6,215 Fuel oil stock, at average cost 54,262 11,027 14,646 — — 79,935 Materials and supplies, at average cost 30,291 7,155 17,758 — — 55,204 Prepayments and other 23,214 5,212 3,692 — — 32,118 Regulatory assets 60,093 3,177 7,746 — — 71,016 Total current assets 420,574 88,859 92,376 101 (21,911 ) 579,999 Other long-term assets Regulatory assets 537,708 120,658 104,044 — — 762,410 Other 69,749 15,944 17,299 — — 102,992 Total other long-term assets 607,457 136,602 121,343 — — 865,402 Total assets $ 4,776,538 951,668 837,945 101 (598,749 ) $ 5,967,503 Capitalization and liabilities Capitalization Common stock equity $ 1,957,641 295,874 280,863 101 (576,838 ) [2] $ 1,957,641 Cumulative preferred stock–not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,000,137 217,749 200,916 — — 1,418,802 Total capitalization 2,980,071 520,623 486,779 101 (576,838 ) 3,410,736 Current liabilities Short-term borrowings-non-affiliate 25,000 — — — — 25,000 Accounts payable 126,384 20,045 25,362 — — 171,791 Interest and preferred dividends payable 16,203 4,203 2,841 — (32 ) [1] 23,215 Taxes accrued 164,747 34,128 34,458 — — 233,333 Regulatory liabilities 7,699 4,872 5,406 — — 17,977 Other 46,391 15,077 20,414 — (21,879 ) [1] 60,003 Total current liabilities 386,424 78,325 88,481 — (21,911 ) 531,319 Deferred credits and other liabilities Deferred income taxes 271,438 54,936 56,823 — — 383,197 Regulatory liabilities 657,210 176,101 98,948 — — 932,259 Unamortized tax credits 60,271 16,217 15,034 — — 91,522 Defined benefit pension and other postretirement benefit plans liability 359,174 73,147 71,338 — — 503,659 Other 61,950 32,319 20,542 — — 114,811 Total deferred credits and other liabilities 1,410,043 352,720 262,685 — — 2,025,448 Total capitalization and liabilities $ 4,776,538 951,668 837,945 101 (598,749 ) $ 5,967,503 |
Schedule of consolidating statements of changes in common stock equity | Consolidating statements of changes in common stock equity (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 119,951 20,146 17,911 — (38,057 ) 119,951 Other comprehensive income (loss), net of taxes (688 ) 2 (55 ) — 53 (688 ) Issuance of common stock, net of expenses 14,000 4 4,801 — (4,805 ) 14,000 Common stock dividends (87,767 ) (24,796 ) (11,946 ) — 36,742 (87,767 ) Balance, December 31, 2017 1,845,283 286,647 270,265 101 (557,013 ) 1,845,283 Net income for common stock 143,653 24,481 20,912 — (45,393 ) 143,653 Other comprehensive income, net of taxes 1,318 34 207 — (241 ) 1,318 Issuance of common stock, net of expenses 70,692 1 1,498 — (1,499 ) 70,692 Common stock dividends (103,305 ) (15,289 ) (12,019 ) — 27,308 (103,305 ) Balance, December 31, 2018 1,957,641 295,874 280,863 101 (576,838 ) 1,957,641 Net income for common stock 156,840 20,817 22,350 — (43,167 ) 156,840 Other comprehensive loss, net of tax benefits (1,378 ) (12 ) (174 ) — 186 (1,378 ) Issuance of common stock, net of expenses 35,501 (1 ) 4,899 — (4,898 ) 35,501 Common stock dividends (101,252 ) (17,680 ) (15,068 ) — 32,748 (101,252 ) Balance, December 31, 2019 $ 2,047,352 298,998 292,870 101 (591,969 ) $ 2,047,352 |
Schedule of consolidating statements of cash flows | Consolidating statement of cash flows Year ended December 31, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Cash flows from operating activities Net income $ 157,920 21,351 22,731 — (43,167 ) [2] $ 158,835 Adjustments to reconcile net income to net cash provided by operating activities Equity in earnings of subsidiaries (43,204 ) — — — 43,167 [2] (37 ) Common stock dividends received from subsidiaries 32,783 — — — (32,748 ) [2] 35 Depreciation of property, plant and equipment 143,470 41,812 30,449 — — 215,731 Other amortization 23,351 4,810 1,470 — — 29,631 Deferred income taxes (13,547 ) (2,383 ) (354 ) — — (16,284 ) Income tax credits, net 27,277 (13 ) (5 ) — — 27,259 State refundable credit (6,245 ) (559 ) (1,565 ) — — (8,369 ) Allowance for equity funds used during construction (9,955 ) (816 ) (1,216 ) — — (11,987 ) Other 298 (48 ) (50 ) — — 200 Changes in assets and liabilities: Decrease in accounts receivable 25,376 3,326 3,469 — (11,215 ) [1] 20,956 Decrease (increase) in accrued unbilled revenues 4,912 (20 ) (381 ) — — 4,511 Decrease (increase) in fuel oil stock (14,741 ) 2,126 613 — — (12,002 ) Decrease (increase) in materials and supplies (4,585 ) (1,158 ) 245 — — (5,498 ) Decrease in regulatory assets 55,494 9,218 6,550 — — 71,262 Increase (decrease) in regulatory liabilities 102 (1,558 ) 3,409 1,953 Increase (decrease) in accounts payable 4,687 (3,160 ) (3,578 ) — — (2,051 ) Change in prepaid and accrued income taxes, tax credits and revenue taxes (24,900 ) (893 ) (3,097 ) — 367 [1] (28,523 ) Decrease in defined benefit pension and other postretirement benefit plans liability (3,033 ) (762 ) (653 ) — — (4,448 ) Change in other assets and liabilities (15,341 ) (6,152 ) (6,940 ) — 11,215 [1] (17,218 ) Net cash provided by operating activities 340,119 65,121 51,097 — (32,381 ) 423,956 Cash flows from investing activities Capital expenditures (311,538 ) (49,811 ) (58,549 ) — — (419,898 ) Advances to affiliates (27,700 ) (8,000 ) — — 35,700 [1] — Other 5,241 297 1,303 — 4,533 [1],[2] 11,374 Net cash used in investing activities (333,997 ) (57,514 ) (57,246 ) — 40,233 (408,524 ) Cash flows from financing activities Common stock dividends (101,252 ) (17,680 ) (15,068 ) — 32,748 [2] (101,252 ) Preferred stock dividends of Hawaiian Electric and subsidiaries (1,080 ) (534 ) (381 ) — — (1,995 ) Proceeds from issuance of common stock 35,500 — 4,900 — (4,900 ) [2] 35,500 Proceeds from issuance of long-term debt 190,000 72,500 17,500 — — 280,000 Repayment of long-term debt and funds transferred for repayment of long-term dent (183,546 ) (70,000 ) (30,000 ) — — (283,546 ) Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less 46,987 — 27,700 — (35,700 ) [1] 38,987 Proceeds from issuance of short-term debt 75,000 — — — — 75,000 Repayment of short-term debt (50,000 ) — — — — (50,000 ) Other (1,475 ) (508 ) (126 ) — — (2,109 ) Net cash provided by (used in) financing activities 10,134 (16,222 ) 4,525 — (7,852 ) (9,415 ) Net increase (decrease) in cash, cash equivalents and restricted cash 16,256 (8,615 ) (1,624 ) — — 6,017 Cash, cash equivalents and restricted cash, January 1 16,732 15,623 3,421 101 — 35,877 Cash, cash equivalents and restricted cash, December 31 32,988 7,008 1,797 101 — 41,894 Less: Restricted cash (30,749 ) (123 ) — — — (30,872 ) Cash and cash equivalents, December 31 $ 2,239 6,885 1,797 101 — $ 11,022 Consolidating statement of cash flows Year ended December 31, 2018 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Cash flows from operating activities Net income $ 144,733 25,015 21,293 — (45,393 ) [2] $ 145,648 Adjustments to reconcile net income to net cash provided by operating activities Equity in earnings of subsidiaries (45,493 ) — — — 45,393 [2] (100 ) Common stock dividends received from subsidiaries 27,408 — — — (27,308 ) [2] 100 Depreciation of property, plant and equipment 137,410 40,235 25,981 — — 203,626 Other amortization 20,956 5,069 577 — — 26,602 Deferred income taxes (9,806 ) (341 ) 2,165 — — (7,982 ) Income tax credits, net (83 ) (14 ) (2 ) — — (99 ) State refundable credit (4,941 ) (547 ) (751 ) — — (6,239 ) Allowance for equity funds used during construction (9,208 ) (478 ) (1,191 ) — — (10,877 ) Other 3,991 348 429 — — 4,768 Changes in assets and liabilities: Increase in accounts receivable (51,656 ) (4,867 ) (8,614 ) — 14,220 [1] (50,917 ) Increase in accrued unbilled revenues (10,884 ) (1,111 ) (2,689 ) — — (14,684 ) Decrease (increase) in fuel oil stock 10,710 (2,329 ) (1,443 ) — — 6,938 Decrease (increase) in materials and supplies (1,966 ) 886 273 — — (807 ) Decrease (increase) in regulatory assets 12,192 71 (3,011 ) — — 9,252 Increase in regulatory liabilities 26,540 5,380 5,438 — — 37,358 Increase in accounts payable 14,748 6,104 3,506 — — 24,358 Change in prepaid and accrued income taxes, tax credits and revenue taxes 24,438 (2,118 ) 3,047 — (331 ) [1] 25,036 Increase (decrease) in defined benefit pension and other postretirement benefit plans liability 17,178 (760 ) 2,328 — — 18,746 Change in other assets and liabilities (8,056 ) 2,806 2,356 — (14,220 ) [1] (17,114 ) Net cash provided by operating activities 298,211 73,349 49,692 — (27,639 ) 393,613 Cash flows from investing activities Capital expenditures (305,703 ) (51,054 ) (58,507 ) — — (415,264 ) Advances from affiliates — — 12,000 — (12,000 ) [1] — Other 3,226 1,182 3,843 — 1,831 [1],[2] 10,082 Net cash used in investing activities (302,477 ) (49,872 ) (42,664 ) — (10,169 ) (405,182 ) Cash flows from financing activities Common stock dividends (103,305 ) (15,289 ) (12,019 ) — 27,308 [2] (103,305 ) Preferred stock dividends of Hawaiian Electric and subsidiaries (1,080 ) (534 ) (381 ) — — (1,995 ) Proceeds from the issuance of common stock 70,700 — 1,500 — (1,500 ) [2] 70,700 Proceeds from the issuance of long-term debt 75,000 15,000 10,000 — — 100,000 Repayment of long-term debt (30,000 ) (11,000 ) (9,000 ) — — (50,000 ) Net decrease in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less (16,999 ) — — — 12,000 [1] (4,999 ) Proceeds from issuance of short-term debt 25,000 — — — — 25,000 Other (377 ) (56 ) (39 ) — — (472 ) Net cash provided by (used in) financing activities 18,939 (11,879 ) (9,939 ) — 37,808 34,929 Net increase (decrease) in cash and cash equivalents 14,673 11,598 (2,911 ) — — 23,360 Cash and cash equivalents, January 1 2,059 4,025 6,332 101 — 12,517 Cash and cash equivalents, December 31 $ 16,732 15,623 3,421 101 — $ 35,877 Consolidating statement of cash flows Year ended December 31, 2017 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating Hawaiian Electric Cash flows from operating activities Net income $ 121,031 20,680 18,292 — (38,057 ) [2] $ 121,946 Adjustments to reconcile net income to net cash provided by operating activities Equity in earnings of subsidiaries (38,157 ) — — — 38,057 [2] (100 ) Common stock dividends received from subsidiaries 36,867 — — — (36,742 ) [2] 125 Depreciation of property, plant and equipment 130,889 38,741 23,154 — — 192,784 Other amortization 2,398 3,225 2,875 — — 8,498 Deferred income taxes 26,342 3,954 8,004 — (263 ) [1] 38,037 Income tax credits, net (35 ) (16 ) (1 ) — — (52 ) State refundable credit (1,382 ) (528 ) (341 ) — — (2,251 ) Allowance for equity funds used during construction (10,896 ) (554 ) (1,033 ) — — (12,483 ) Other 263 974 — — — 1,237 Changes in assets and liabilities: Decrease (increase) in accounts receivable 1,817 (359 ) 45 — 1,411 [1] 2,914 Increase in accrued unbilled revenues (11,355 ) (2,376 ) (1,630 ) — — (15,361 ) Increase in fuel oil stock (17,733 ) (469 ) (2,241 ) — — (20,443 ) Decrease (increase) in materials and supplies 1,603 (661 ) (1,660 ) — — (718 ) Increase in regulatory assets (8,395 ) (4,007 ) (4,854 ) — — (17,256 ) Increase in regulatory liabilities 2,552 315 735 — — 3,602 Increase (decrease) in accounts payable 23,519 (3,547 ) 5,762 — — 25,734 Change in prepaid and accrued income taxes, tax credits and revenue taxes 16,716 7,961 5,362 — (177 ) [1] 29,862 Increase (decrease) in defined benefit pension and other postretirement benefit plans liability 709 52 (157 ) — — 604 Change in other assets and liabilities (18,765 ) (748 ) (569 ) — (1,411 ) [1] (21,493 ) Net cash provided by operating activities 257,988 62,637 51,743 — (37,182 ) 335,186 Cash flows from investing activities Capital expenditures (281,752 ) (47,784 ) (47,329 ) — — (376,865 ) Advances from (to) affiliates — 3,500 (2,000 ) — (1,500 ) [1] — Other (1,711 ) 649 400 — 5,240 [1],[2] 4,578 Net cash used in investing activities (283,463 ) (43,635 ) (48,929 ) — 3,740 (372,287 ) Cash flows from financing activities Common stock dividends (87,767 ) (24,796 ) (11,946 ) — 36,742 [2] (87,767 ) Preferred stock dividends of Hawaiian Electric and subsidiaries (1,080 ) (534 ) (381 ) — — (1,995 ) Proceeds from the issuance of common stock 14,000 — 4,800 — (4,800 ) [2] 14,000 Proceeds from the issuance of long-term debt 202,000 28,000 85,000 — — 315,000 Repayment of long-term debt (162,000 ) (28,000 ) (75,000 ) — — (265,000 ) Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less 3,499 — — — 1,500 [1] 4,999 Other (2,506 ) (396 ) (1,003 ) — — (3,905 ) Net cash provided by (used in) financing activities (33,854 ) (25,726 ) 1,470 — 33,442 (24,668 ) Net increase (decrease) in cash and cash equivalents (59,329 ) (6,724 ) 4,284 — — (61,769 ) Cash and cash equivalents, January 1 61,388 10,749 2,048 101 — 74,286 Cash and cash equivalents, December 31 $ 2,059 4,025 6,332 101 — $ 12,517 Explanation of consolidating adjustments on consolidating schedules: [1] Eliminations of intercompany receivables and payables and other intercompany transactions. [2] Elimination of investment in subsidiaries, carried at equity. |
Bank segment (HEI only) (Tables
Bank segment (HEI only) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Bank Segment Disclosure [Abstract] | |
Schedule of statements of income data | Statements of Income and Comprehensive Income Data Years ended December 31 2019 2018 2017 (in thousands) Interest and dividend income Interest and fees on loans $ 233,632 $ 220,463 $ 207,255 Interest and dividends on investment securities 32,922 37,762 28,823 Total interest and dividend income 266,554 258,225 236,078 Interest expense Interest on deposit liabilities 16,830 13,991 9,660 Interest on other borrowings 1,610 1,548 2,496 Total interest expense 18,440 15,539 12,156 Net interest income 248,114 242,686 223,922 Provision for loan losses 23,480 14,745 10,901 Net interest income after provision for loan losses 224,634 227,941 213,021 Noninterest income Fees from other financial services 19,275 18,937 22,796 Fee income on deposit liabilities 20,877 21,311 22,204 Fee income on other financial products 6,507 7,052 7,205 Bank-owned life insurance 7,687 5,057 5,539 Mortgage banking income 4,943 1,493 2,201 Gain on sale of real estate 10,762 — — Gains on sale of investment securities, net 653 — — Other income, net 2,074 2,200 1,617 Total noninterest income 72,778 56,050 61,562 Noninterest expense Compensation and employee benefits 103,009 98,387 94,931 Occupancy 21,272 17,073 16,699 Data processing 15,306 14,268 13,280 Services 10,239 10,847 10,994 Equipment 8,760 7,186 7,232 Office supplies, printing and postage 5,512 6,134 6,182 Marketing 4,490 3,567 3,501 FDIC insurance 1,204 2,713 2,904 Other expense 15,586 17,238 20,144 Total noninterest expense 185,378 177,413 175,867 Income before income taxes 112,034 106,578 98,716 Income taxes 23,061 24,069 31,719 Net income 88,973 82,509 66,997 Other comprehensive income (loss), net of taxes 29,406 (7,119 ) (3,139 ) Comprehensive income $ 118,379 $ 75,390 $ 63,858 Reconciliation to amounts per HEI Consolidated Statements of Income*: Years ended December 31 2019 2018 2017 (in thousands) Interest and dividend income $ 266,554 $ 258,225 $ 236,078 Noninterest income 72,778 56,050 61,562 Less: Gain on sale of real estate (10,762 ) — — *Revenues-Bank 328,570 314,275 297,640 Total interest expense 18,440 15,539 12,156 Provision for loan losses 23,480 14,745 10,901 Noninterest expense 185,378 177,413 175,867 Less: Retirement defined benefits credit (expense)—other than service costs 472 (1,657 ) (820 ) Add: Gain on sale of real estate (10,762 ) — — *Expenses-Bank 217,008 206,040 198,104 *Operating income-Bank 111,562 108,235 99,536 Add back: Retirement defined benefits expense (credit)—other than service costs (472 ) 1,657 820 Income before income taxes $ 112,034 $ 106,578 $ 98,716 |
Schedule of statements of comprehensive income data | Statements of Income and Comprehensive Income Data Years ended December 31 2019 2018 2017 (in thousands) Interest and dividend income Interest and fees on loans $ 233,632 $ 220,463 $ 207,255 Interest and dividends on investment securities 32,922 37,762 28,823 Total interest and dividend income 266,554 258,225 236,078 Interest expense Interest on deposit liabilities 16,830 13,991 9,660 Interest on other borrowings 1,610 1,548 2,496 Total interest expense 18,440 15,539 12,156 Net interest income 248,114 242,686 223,922 Provision for loan losses 23,480 14,745 10,901 Net interest income after provision for loan losses 224,634 227,941 213,021 Noninterest income Fees from other financial services 19,275 18,937 22,796 Fee income on deposit liabilities 20,877 21,311 22,204 Fee income on other financial products 6,507 7,052 7,205 Bank-owned life insurance 7,687 5,057 5,539 Mortgage banking income 4,943 1,493 2,201 Gain on sale of real estate 10,762 — — Gains on sale of investment securities, net 653 — — Other income, net 2,074 2,200 1,617 Total noninterest income 72,778 56,050 61,562 Noninterest expense Compensation and employee benefits 103,009 98,387 94,931 Occupancy 21,272 17,073 16,699 Data processing 15,306 14,268 13,280 Services 10,239 10,847 10,994 Equipment 8,760 7,186 7,232 Office supplies, printing and postage 5,512 6,134 6,182 Marketing 4,490 3,567 3,501 FDIC insurance 1,204 2,713 2,904 Other expense 15,586 17,238 20,144 Total noninterest expense 185,378 177,413 175,867 Income before income taxes 112,034 106,578 98,716 Income taxes 23,061 24,069 31,719 Net income 88,973 82,509 66,997 Other comprehensive income (loss), net of taxes 29,406 (7,119 ) (3,139 ) Comprehensive income $ 118,379 $ 75,390 $ 63,858 Reconciliation to amounts per HEI Consolidated Statements of Income*: Years ended December 31 2019 2018 2017 (in thousands) Interest and dividend income $ 266,554 $ 258,225 $ 236,078 Noninterest income 72,778 56,050 61,562 Less: Gain on sale of real estate (10,762 ) — — *Revenues-Bank 328,570 314,275 297,640 Total interest expense 18,440 15,539 12,156 Provision for loan losses 23,480 14,745 10,901 Noninterest expense 185,378 177,413 175,867 Less: Retirement defined benefits credit (expense)—other than service costs 472 (1,657 ) (820 ) Add: Gain on sale of real estate (10,762 ) — — *Expenses-Bank 217,008 206,040 198,104 *Operating income-Bank 111,562 108,235 99,536 Add back: Retirement defined benefits expense (credit)—other than service costs (472 ) 1,657 820 Income before income taxes $ 112,034 $ 106,578 $ 98,716 |
Schedule of balance sheets data | Balance Sheets Data December 31 2019 2018 (in thousands) Assets Cash and due from banks $ 129,770 $ 122,059 Interest-bearing deposits 48,628 4,225 Investment securities Available-for-sale, at fair value 1,232,826 1,388,533 Held-to-maturity, at amortized cost (fair value of $143,467 and $142,057 at December 31, 2019 and 2018, respectively) 139,451 141,875 Stock in Federal Home Loan Bank, at cost 8,434 9,958 Loans held for investment 5,121,176 4,843,021 Allowance for loan losses (53,355 ) (52,119 ) Net loans 5,067,821 4,790,902 Loans held for sale, at lower of cost or fair value 12,286 1,805 Other 511,611 486,347 Goodwill 82,190 82,190 Total assets $ 7,233,017 $ 7,027,894 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 1,909,682 $ 1,800,727 Deposit liabilities–interest-bearing 4,362,220 4,358,125 Other borrowings 115,110 110,040 Other 146,954 124,613 Total liabilities 6,533,966 6,393,505 Commitments and contingencies Common stock 1 1 Additional paid in capital 349,453 347,170 Retained earnings 358,259 325,286 Accumulated other comprehensive loss, net of tax benefits Net unrealized gains (losses) on securities $ 2,481 $ (24,423 ) Retirement benefit plans (11,143 ) (8,662 ) (13,645 ) (38,068 ) Total shareholder’s equity 699,051 634,389 Total liabilities and shareholder’s equity $ 7,233,017 $ 7,027,894 December 31 2019 2018 (in thousands) Other assets Bank-owned life insurance $ 157,465 $ 151,172 Premises and equipment, net 204,449 214,415 Accrued interest receivable 19,365 20,140 Mortgage servicing rights 9,101 8,062 Low-income housing investments 66,302 67,626 Real estate acquired in settlement of loans, net — 406 Other 54,929 24,526 $ 511,611 $ 486,347 Other liabilities Accrued expenses $ 45,822 $ 54,084 Federal and state income taxes payable 14,996 2,012 Cashier’s checks 23,647 26,906 Advance payments by borrowers 10,486 10,183 Other 52,003 31,428 $ 146,954 $ 124,613 |
Schedule of the book value and aggregate fair value by major security type | The major components of investment securities were as follows: Gross unrealized losses Gross unrealized gains Gross unrealized Estimated fair value Less than 12 months 12 months or longer (dollars in thousands) Amortized cost Number of issues Fair value Amount Number of issues Fair value Amount December 31, 2019 Available-for-sale U.S. Treasury and federal agency obligations $ 117,255 $ 652 $ (120 ) $ 117,787 2 $ 4,110 $ (11 ) 3 $ 27,637 $ (109 ) Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,024,892 6,000 (4,507 ) 1,026,385 19 152,071 (819 ) 75 318,020 (3,688 ) Corporate bonds 58,694 1,363 — 60,057 — — — — — — Mortgage revenue bonds 28,597 — — 28,597 — — — — — — $ 1,229,438 $ 8,015 $ (4,627 ) $ 1,232,826 21 $ 156,181 $ (830 ) 78 $ 345,657 $ (3,797 ) Held-to-maturity Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ 139,451 $ 4,087 $ (71 ) $ 143,467 1 $ 12,986 $ (71 ) — $ — $ — $ 139,451 $ 4,087 $ (71 ) $ 143,467 1 $ 12,986 $ (71 ) — $ — $ — Gross unrealized losses Gross unrealized gains Gross unrealized Estimated fair value Less than 12 months 12 months or longer (dollars in thousands) Amortized cost Number of issues Fair value Amount Number of issues Fair value Amount December 31, 2018 Available-for-sale U.S. Treasury and federal agency obligations $ 156,694 $ 62 $ (2,407 ) $ 154,349 5 $ 25,882 $ (208 ) 19 $ 118,405 $ (2,199 ) Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,192,169 789 (31,542 ) 1,161,416 22 129,011 (1,330 ) 145 947,890 (30,212 ) Corporate bonds 49,398 103 (369 ) 49,132 6 23,175 (369 ) — — — Mortgage revenue bond 23,636 — — 23,636 — — — — — — $ 1,421,897 $ 954 $ (34,318 ) $ 1,388,533 33 $ 178,068 $ (1,907 ) 164 $ 1,066,295 $ (32,411 ) Held-to-maturity Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ 141,875 $ 1,446 $ (1,264 ) $ 142,057 3 $ 29,814 $ (400 ) 2 $ 31,505 $ (864 ) $ 141,875 $ 1,446 $ (1,264 ) $ 142,057 3 $ 29,814 $ (400 ) 2 $ 31,505 $ (864 ) |
Schedule of contractual maturities of available-for-sale securities | The contractual maturities of investment securities were as follows: Amortized Fair December 31, 2019 Cost value (in thousands) Available-for-sale Due in one year or less $ 60,200 $ 60,249 Due after one year through five years 75,694 77,225 Due after five years through ten years 53,225 53,540 Due after ten years 15,427 15,427 204,546 206,441 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,024,892 1,026,385 Total available-for-sale securities $ 1,229,438 $ 1,232,826 Held-to-maturity Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ 139,451 $ 143,467 Total held-to-maturity securities $ 139,451 $ 143,467 |
Schedule of proceeds, gains and losses from sales of available for sale investment securities | The proceeds, gross gains and losses from sales of available-for-sale securities were as follows: Years ended December 31 2019 2018 2017 (in millions) Proceeds $ 19.8 $ — $ — Gross gains 0.7 — — Gross losses — — — |
Schedule of interest income from available for sale investment securities | Interest income from taxable and non-taxable investment securities were as follows: Years ended December 31 2019 2018 2017 (in thousands) Taxable $ 31,847 $ 37,153 $ 28,398 Non-taxable 1,074 609 425 $ 32,921 $ 37,762 $ 28,823 |
Schedule of loans receivable | The components of loans were summarized as follows: December 31 2019 2018 (in thousands) Real estate: Residential 1-4 family $ 2,178,135 $ 2,143,397 Commercial real estate 824,830 748,398 Home equity line of credit 1,092,125 978,237 Residential land 14,704 13,138 Commercial construction 70,605 92,264 Residential construction 11,670 14,307 Total real estate 4,192,069 3,989,741 Commercial 670,674 587,891 Consumer 257,921 266,002 Total loans 5,120,664 4,843,634 Less: Deferred fees and discounts 512 (613 ) Allowance for loan losses (53,355 ) (52,119 ) Total loans, net $ 5,067,821 $ 4,790,902 |
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 Home equity Residential land Commercial construction Residential construction Commercial Consumer Total December 31, 2019 Allowance for loan losses: Beginning balance $ 1,976 $ 14,505 $ 6,371 $ 479 $ 2,790 $ 4 $ 9,225 $ 16,769 $ 52,119 Charge-offs (26 ) — (144 ) (4 ) — — (6,811 ) (21,677 ) (28,662 ) Recoveries 854 — 17 229 — — 2,351 2,967 6,418 Provision (424 ) 548 678 (255 ) (693 ) (1 ) 5,480 18,147 23,480 Ending balance $ 2,380 $ 15,053 $ 6,922 $ 449 $ 2,097 $ 3 $ 10,245 $ 16,206 $ 53,355 Ending balance: individually evaluated for impairment $ 898 $ 2 $ 322 $ — $ — $ — $ 1,015 $ 454 $ 2,691 Ending balance: collectively evaluated for impairment $ 1,482 $ 15,051 $ 6,600 $ 449 $ 2,097 $ 3 $ 9,230 $ 15,752 $ 50,664 Financing Receivables: Ending balance $ 2,178,135 $ 824,830 $ 1,092,125 $ 14,704 $ 70,605 $ 11,670 $ 670,674 $ 257,921 $ 5,120,664 Ending balance: individually evaluated for impairment $ 15,600 $ 1,048 $ 12,073 $ 3,091 $ — $ — $ 8,418 $ 507 $ 40,737 Ending balance: collectively evaluated for impairment $ 2,162,535 $ 823,782 $ 1,080,052 $ 11,613 $ 70,605 $ 11,670 $ 662,256 $ 257,414 $ 5,079,927 December 31, 2018 Allowance for loan losses: Beginning balance $ 2,902 $ 15,796 $ 7,522 $ 896 $ 4,671 $ 12 $ 10,851 $ 10,987 $ 53,637 Charge-offs (128 ) — (353 ) (18 ) — — (2,722 ) (17,296 ) (20,517 ) Recoveries 74 — 257 179 — — 2,136 1,608 4,254 Provision (872 ) (1,291 ) (1,055 ) (578 ) (1,881 ) (8 ) (1,040 ) 21,470 14,745 Ending balance $ 1,976 $ 14,505 $ 6,371 $ 479 $ 2,790 $ 4 $ 9,225 $ 16,769 $ 52,119 Ending balance: individually evaluated for impairment $ 876 $ 7 $ 701 $ 6 $ — $ — $ 628 $ 4 $ 2,222 Ending balance: collectively evaluated for impairment $ 1,100 $ 14,498 $ 5,670 $ 473 $ 2,790 $ 4 $ 8,597 $ 16,765 $ 49,897 Financing Receivables: Ending balance $ 2,143,397 $ 748,398 $ 978,237 $ 13,138 $ 92,264 $ 14,307 $ 587,891 $ 266,002 $ 4,843,634 Ending balance: individually evaluated for impairment $ 16,494 $ 915 $ 14,800 $ 2,059 $ — $ — $ 5,340 $ 89 $ 39,697 Ending balance: collectively evaluated for impairment $ 2,126,903 $ 747,483 $ 963,437 $ 11,079 $ 92,264 $ 14,307 $ 582,551 $ 265,913 $ 4,803,937 December 31, 2017 Allowance for loan losses: Beginning balance $ 2,873 $ 16,004 $ 5,039 $ 1,738 $ 6,449 $ 12 $ 16,618 $ 6,800 $ 55,533 Charge-offs (826 ) — (14 ) (210 ) — — (4,006 ) (11,757 ) (16,813 ) Recoveries 157 — 308 482 — — 1,852 1,217 4,016 Provision 698 (208 ) 2,189 (1,114 ) (1,778 ) — (3,613 ) 14,727 10,901 Ending balance $ 2,902 $ 15,796 $ 7,522 $ 896 $ 4,671 $ 12 $ 10,851 $ 10,987 $ 53,637 Ending balance: individually evaluated for impairment $ 1,248 $ 65 $ 647 $ 47 $ — $ — $ 694 $ 29 $ 2,730 Ending balance: collectively evaluated for impairment $ 1,654 $ 15,731 $ 6,875 $ 849 $ 4,671 $ 12 $ 10,157 $ 10,958 $ 50,907 Financing Receivables: Ending balance $ 2,118,047 $ 733,106 $ 913,052 $ 15,797 $ 108,273 $ 14,910 $ 544,828 $ 223,564 $ 4,671,577 Ending balance: individually evaluated for impairment $ 18,284 $ 1,016 $ 8,188 $ 1,265 $ — $ — $ 4,574 $ 66 $ 33,393 Ending balance: collectively evaluated for impairment $ 2,099,763 $ 732,090 $ 904,864 $ 14,532 $ 108,273 $ 14,910 $ 540,254 $ 223,498 $ 4,638,184 |
Schedule of credit risk profile by internally assigned grade for loans | The credit risk profile by internally assigned grade for loans was as follows: December 31 2019 2018 (in thousands) Commercial real estate Commercial construction Commercial Total Commercial real estate Commercial construction Commercial Total Grade: Pass $ 756,747 $ 68,316 $ 621,657 $ 1,446,720 $ 658,288 $ 89,974 $ 547,640 $ 1,295,902 Special mention 4,451 — 29,921 34,372 32,871 — 11,598 44,469 Substandard 63,632 2,289 19,096 85,017 57,239 2,290 28,653 88,182 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 824,830 $ 70,605 $ 670,674 $ 1,566,109 $ 748,398 $ 92,264 $ 587,891 $ 1,428,553 |
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 December 31, 2019 Real estate: Residential 1-4 family $ 2,588 $ 290 $ 1,808 $ 4,686 $ 2,173,449 $ 2,178,135 $ — Commercial real estate — — — — 824,830 824,830 — Home equity line of credit 813 — 2,117 2,930 1,089,195 1,092,125 — Residential land — — 25 25 14,679 14,704 — Commercial construction — — — — 70,605 70,605 — Residential construction — — — — 11,670 11,670 — Commercial 1,077 311 172 1,560 669,114 670,674 — Consumer 4,386 3,257 2,907 10,550 247,371 257,921 — Total loans $ 8,864 $ 3,858 $ 7,029 $ 19,751 $ 5,100,913 $ 5,120,664 $ — December 31, 2018 Real estate: Residential 1-4 family $ 3,757 $ 2,773 $ 2,339 $ 8,869 $ 2,134,528 $ 2,143,397 $ — Commercial real estate — — — — 748,398 748,398 — Home equity line of credit 1,139 681 2,720 4,540 973,697 978,237 — Residential land 9 — 319 328 12,810 13,138 — Commercial construction — — — — 92,264 92,264 — Residential construction — — — — 14,307 14,307 — Commercial 315 281 548 1,144 586,747 587,891 — Consumer 5,220 3,166 2,702 11,088 254,914 266,002 — Total loans $ 10,440 $ 6,901 $ 8,628 $ 25,969 $ 4,817,665 $ 4,843,634 $ — |
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: Nonaccrual loans Accruing loans 90 days or more past due Troubled debt restructured loans not included in nonaccrual loans December 31 2019 2018 2019 2018 2019 2018 (in thousands) Real estate: Residential 1-4 family $ 11,395 $ 12,037 $ — $ — $ 9,869 $ 10,194 Commercial real estate 195 — — — 853 915 Home equity line of credit 6,638 6,348 — — 10,376 11,597 Residential land 448 436 — — 2,644 1,622 Commercial construction — — — — — — Residential construction — — — — — — Commercial 5,947 4,278 — — 2,614 1,527 Consumer 5,113 4,196 — — 57 62 Total $ 29,736 $ 27,295 $ — $ — $ 26,413 $ 25,917 |
Schedule of the carrying amount and the total unpaid principal balance of impaired loans | The total carrying amount and the total unpaid principal balance of impaired loans were as follows: December 31 2019 2018 (in thousands) Recorded investment Unpaid principal balance Related allowance Recorded investment Unpaid principal balance Related allowance With no related allowance recorded Real estate: Residential 1-4 family $ 6,817 $ 7,207 $ — $ 7,822 $ 8,333 $ — Commercial real estate 195 200 — — — — Home equity line of credit 1,984 2,135 — 2,743 3,004 — Residential land 3,091 3,294 — 2,030 2,228 — Commercial construction — — — — — — Residential construction — — — — — — Commercial 1,948 2,285 — 3,722 4,775 — Consumer 2 2 — 32 32 — 14,037 15,123 — 16,349 18,372 — With an allowance recorded Real estate: Residential 1-4 family 8,783 8,835 898 8,672 8,875 876 Commercial real estate 853 853 2 915 915 7 Home equity line of credit 10,089 10,099 322 12,057 12,086 701 Residential land — — — 29 29 6 Commercial construction — — — — — — Residential construction — — — — — — Commercial 6,470 6,470 1,015 1,618 1,618 628 Consumer 505 505 454 57 57 4 26,700 26,762 2,691 23,348 23,580 2,222 Total Real estate: Residential 1-4 family 15,600 16,042 898 16,494 17,208 876 Commercial real estate 1,048 1,053 2 915 915 7 Home equity line of credit 12,073 12,234 322 14,800 15,090 701 Residential land 3,091 3,294 — 2,059 2,257 6 Commercial construction — — — — — — Residential construction — — — — — — Commercial 8,418 8,755 1,015 5,340 6,393 628 Consumer 507 507 454 89 89 4 $ 40,737 $ 41,885 $ 2,691 $ 39,697 $ 41,952 $ 2,222 ASB’s average recorded investment of, and interest income recognized from, impaired loans were as follows: December 31 2019 2018 2017 (in thousands) Average Interest Average Interest Average Interest With no related allowance recorded Real estate: Residential 1-4 family $ 8,169 $ 907 $ 8,595 $ 445 $ 9,440 $ 316 Commercial real estate 16 — — — 91 11 Home equity line of credit 2,020 84 2,206 75 1,976 101 Residential land 2,662 129 1,532 40 1,094 117 Commercial construction — — — — — — Residential construction — — — — — — Commercial 4,534 276 3,275 28 2,776 54 Consumer 21 4 22 — 1 — 17,422 1,400 15,630 588 15,378 599 With an allowance recorded Real estate: Residential 1-4 family 8,390 359 8,878 363 9,818 493 Commercial real estate 886 37 982 42 1,241 54 Home equity line of credit 11,319 567 10,617 440 5,045 251 Residential land 27 — 37 3 1,308 97 Commercial construction — — — — — — Residential construction — — — — — — Commercial 6,990 132 1,789 122 3,691 723 Consumer 360 24 57 4 57 3 27,972 1,119 22,360 974 21,160 1,621 Total Real estate: Residential 1-4 family 16,559 1,266 17,473 808 19,258 809 Commercial real estate 902 37 982 42 1,332 65 Home equity line of credit 13,339 651 12,823 515 7,021 352 Residential land 2,689 129 1,569 43 2,402 214 Commercial construction — — — — — — Residential construction — — — — — — Commercial 11,524 408 5,064 150 6,467 777 Consumer 381 28 79 4 58 3 $ 45,394 $ 2,519 $ 37,990 $ 1,562 $ 36,538 $ 2,220 * Since loan was classified as impaired. |
Schedule of loan modifications | Loan modifications that occurred during 2019 , 2018 , and 2017 were as follows: Years ended December 31, 2019 December 31, 2018 (dollars in thousands) Number of contracts Outstanding (as of period end) 1 Related allowance (as of period end) Number of contracts Outstanding (as of period end) 1 Related allowance (as of period end) Real estate: Residential 1-4 family 11 $ 1,770 $ 190 3 $ 566 $ 26 Commercial real estate — — — — — — Home equity line of credit 3 442 73 53 6,659 578 Residential land 3 1,086 — 2 1,338 — Commercial construction — — — — — — Residential construction — — — — — — Commercial 8 5,523 417 12 2,165 211 Consumer — — — — — — 25 $ 8,821 $ 680 70 $ 10,728 $ 815 Year ended December 31, 2017 (dollars in thousands) Number of contracts Outstanding (as of period end) 1 Related allowance (as of period end) Real estate: Residential 1-4 family 3 $ 469 $ 65 Commercial real estate — — — Home equity line of credit 44 2,791 545 Residential land 1 92 — Commercial construction — — — Residential construction — — — Commercial 8 525 250 Consumer 1 58 29 57 $ 3,935 $ 889 1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included. |
Schedule of loans modified in TDRS that experienced a payment default of 90 days or more, and for which payment default occurred within one year of the modification | Loans modified in TDRs that experienced a payment default of 90 days or more in 2019 , 2018 , and 2017 and for which the payment default occurred within one year of the modification, were as follows: Years ended December 31 2019 2018 2017 (dollars in thousands) Number of contracts Recorded investment Number of contracts Recorded investment Number of Recorded Troubled debt restructurings that subsequently defaulted Real estate: Residential 1-4 family — $ — — $ — 1 $ 222 Commercial real estate — — — — — — Home equity line of credit — — 1 81 — — Residential land — — — — — — Commercial construction — — — — — — Residential construction — — — — — — Commercial — — 1 246 — — Consumer — — — — — — — $ — 2 $ 327 1 $ 222 |
Schedule of amortized intangible assets | Changes in the carrying value of MSRs were as follows: (in thousands) Gross 1 Accumulated amortization 1 Valuation allowance Net December 31, 2019 $ 21,543 $ (12,442 ) $ — $ 9,101 December 31, 2018 $ 18,556 $ (10,494 ) $ — $ 8,062 1 Reflects impact of loans paid in full. Changes related to MSRs were as follows: (in thousands) 2019 2018 2017 Mortgage servicing rights Balance, January 1 $ 8,062 $ 8,639 $ 9,373 Amount capitalized 2,987 1,045 1,239 Amortization (1,948 ) (1,622 ) (1,973 ) Sale of mortgage servicing rights — — — Other-than-temporary impairment — — — Carrying amount before valuation allowance, December 31 9,101 8,062 8,639 Valuation allowance for mortgage servicing rights Balance, January 1 — — — Provision (recovery) — — — Other-than-temporary impairment — — — Balance, December 31 — — — Net carrying value of mortgage servicing rights $ 9,101 $ 8,062 $ 8,639 |
Schedule of key assumptions used in estimating fair value | Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows: December 31 2019 2018 (dollars in thousands) Unpaid principal balance $ 1,276,437 $ 1,188,514 Weighted average note rate 3.96 % 3.98 % Weighted average discount rate 9.3 % 10.0 % Weighted average prepayment speed 11.4 % 6.5 % 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) (dollars in thousands) Fair value Valuation technique Significant unobservable input Range Weighted December 31, 2019 Residential land $ 25 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) N/A (2) Total loans $ 25 December 31, 2018 Home equity lines of credit 77 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) N/A (2) Total loans $ 77 Real estate acquired in settlement of loans $ 186 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) N/A (2) (1) Represent percent of outstanding principal balance. (2) N/A - Not applicable. There is one asset in each fair value measurement type. |
Schedule of sensitivity analysis of fair value of MSR to hypothetical adverse changes | 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: December 31 2019 2018 (in thousands) Prepayment rate: 25 basis points adverse rate change $ (950 ) $ (250 ) 50 basis points adverse rate change (1,947 ) (566 ) Discount rate: 25 basis points adverse rate change (102 ) (139 ) 50 basis points adverse rate change (202 ) (275 ) |
Schedule of deposit liabilities | The summarized components of deposit liabilities were as follows: December 31 2019 2018 (dollars in thousands) Weighted-average stated rate Amount Weighted-average stated rate Amount Savings 0.09 % $ 2,379,522 0.07 % $ 2,322,552 Checking Interest-bearing 0.09 1,062,122 0.09 1,055,019 Noninterest-bearing — 977,459 — 932,608 Commercial checking — 932,223 — 868,119 Money market 0.69 150,751 0.63 152,713 Time certificates 1.42 769,825 1.61 827,841 0.24 % $ 6,271,902 0.27 % $ 6,158,852 |
Schedule of maturities of term certificates | The approximate scheduled maturities of time certificates outstanding at December 31, 2019 were as follows: (in thousands) 2020 $ 503,214 2021 112,632 2022 87,132 2023 29,134 2024 35,253 Thereafter 2,460 $ 769,825 |
Schedule of interest expense on deposit liabilities by type | Interest expense on deposit liabilities by type of deposit was as follows: Years ended December 31 2019 2018 2017 (in thousands) Time certificates $ 12,675 $ 11,044 $ 7,687 Savings 1,904 1,639 1,567 Money market 953 602 168 Interest-bearing checking 1,298 706 238 $ 16,830 $ 13,991 $ 9,660 |
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 Sheets Net amount of liabilities presented in the Balance Sheets Repurchase agreements December 31, 2019 $ 115 $ — $ 115 December 31, 2018 65 — 65 Gross amount not offset in the Balance Sheets (in millions) Net amount of liabilities presented in the Balance Sheets Financial instruments Cash collateral pledged Commercial account holders December 31, 2019 $ 115 $ 130 $ — December 31, 2018 65 92 — Securities sold under agreements to repurchase were summarized as follows: December 31 2019 2018 Maturity Repurchase liability Weighted-average interest rate Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest Repurchase liability Weighted-average Collateralized by (dollars in thousands) Overnight $ 115,110 0.98 % $ 129,527 $ 65,040 0.75 % $ 92,290 1 to 29 days — — — — — — 30 to 90 days — — — — — — Over 90 days — — — — — — $ 115,110 0.98 % $ 129,527 $ 65,040 0.75 % $ 92,290 |
Schedule of securities sold under agreements to repurchase, which provided for repurchase of identical securities | Information concerning securities sold under agreements to repurchase, which provided for the repurchase of identical securities, was as follows: (dollars in millions) 2019 2018 2017 Amount outstanding as of December 31 $ 115 $ 65 $ 141 Average amount outstanding during the year $ 80 $ 99 $ 98 Maximum amount outstanding as of any month-end $ 115 $ 152 $ 141 Weighted-average interest rate as of December 31 0.98 % 0.75 % 0.65 % Weighted-average interest rate during the year 0.96 % 0.71 % 0.26 % Weighted-average remaining days to maturity as of December 31 1 1 1 |
Schedule of actual and minimum required capital amounts and ratios | The tables below set forth actual and minimum required capital amounts and ratios: Actual Minimum required Required to be well capitalized (dollars in thousands) Capital Ratio Capital Ratio Capital Ratio December 31, 2019 Tier 1 leverage 641,547 9.06 % 283,122 4.00 % 353,903 5.00 % Common equity tier 1 641,547 13.18 % 219,071 4.50 % 316,435 6.50 % Tier 1 capital 641,547 13.18 % 292,094 6.00 % 389,459 8.00 % Total capital 696,643 14.31 % 389,459 8.00 % 486,823 10.00 % December 31, 2018 Tier 1 leverage 606,291 8.70 % 278,811 4.00 % 348,514 5.00 % Common equity tier 1 606,291 12.80 % 213,190 4.50 % 307,941 6.50 % Tier 1 capital 606,291 12.80 % 284,253 6.00 % 379,004 8.00 % Total capital 660,151 13.93 % 379,004 8.00 % 473,755 10.00 % |
Schedule of notional amounts and fair value of derivatives | The notional amount and fair value of ASB’s derivative financial instruments were as follows: December 31 2019 2018 (in thousands) Notional amount Fair value Notional amount Fair value Interest rate lock commitments $ 23,171 $ 297 $ 10,180 $ 91 Forward commitments 29,383 (42 ) 10,132 (43 ) |
Schedule of derivative financial instruments, fair values, and balance sheet location | ASB’s derivative financial instruments, their fair values, and balance sheet location were as follows: Derivative Financial Instruments Not Designated as Hedging Instruments 1 December 31 2019 2018 (in thousands) Asset derivatives Liability derivatives Asset derivatives Liability derivatives Interest rate lock commitments $ 297 $ — $ 91 $ — Forward commitments 3 45 — 43 $ 300 $ 45 $ 91 $ 43 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 amount and location of net gains or losses | 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 Location of net gains as Hedging Instruments (losses) recognized in Years ended December 31 (in thousands) the Statements of Income 2019 2018 2017 Interest rate lock commitments Mortgage banking income $ 206 $ (40 ) $ (290 ) Forward commitments Mortgage banking income 1 (19 ) 153 $ 207 $ (59 ) $ (137 ) |
Schedule of off balance sheet arrangements | The following is a summary of outstanding off-balance sheet arrangements: December 31 2019 2018 (in thousands) Unfunded commitments to extend credit: Home equity line of credit $ 1,290,854 $ 1,242,804 Commercial and commercial real estate 484,806 515,058 Consumer 70,088 70,292 Residential 1-4 family 21,131 17,552 Commercial and financial standby letters of credit 11,912 13,340 Total $ 1,878,791 $ 1,859,046 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of long-term debt | On May 13, 2019, the Utilities issued, through a private placement pursuant to separate Note Purchase Agreements (the Note Purchase Agreements), the following unsecured notes bearing taxable interest (the Unsecured Notes): Series 2019A Aggregate principal amount $50 million Fixed coupon interest rate 4.21% Maturity date May 15, 2034 Principal amount by company: Hawaiian Electric $30 million Hawaii Electric Light $10 million Maui Electric $10 million The Unsecured Notes include substantially the same financial covenants and customary conditions as Hawaiian Electric’s credit agreement. Hawaiian Electric is also a party as guarantor under the Note Purchase Agreements entered into by Hawaii Electric Light and Maui Electric. The Unsecured Notes may be prepaid in whole or in part at any time at the prepayment price of the principal amount plus a “Make-Whole Amount,” as defined in the Note Purchase Agreements. On May 15, 2019, proceeds from the sale were applied to redeem the Utilities’ 2004 junior subordinated deferrable interest debentures at par value: 2004 Junior subordinated deferrable interest debentures redeemed Aggregate principal amount $51.5 million Fixed coupon interest rate 6.50% Maturity date May 15, 2034 Principal amount by company: Hawaiian Electric $31.5 million Hawaii Electric Light $10 million Maui Electric $10 million On July 18, 2019, the Department of Budget and Finance of the State of Hawaii (DBF) for the benefit of Hawaiian Electric and Hawaii Electric Light, issued, at par: Refunding Series 2019 Special Purpose Revenue Bonds Aggregate principal amount $150 million Fixed coupon interest rate 3.20% Maturity date July 1, 2039 DBF loaned the proceeds to: Hawaiian Electric $90 million Hawaii Electric Light $60 million On July 26, 2019, proceeds from the sale were applied to redeem at par, bonds previously issued by the DBF for the benefit of Hawaiian Electric and Hawaii Electric Light: Series 2009 Special Purpose Revenue Bonds Redeemed Aggregate principal amount $150 million Fixed coupon interest rate 6.50% Maturity date July 1, 2039 Principal amount by company: Hawaiian Electric $90 million Hawaii Electric Light $60 million On October 10, 2019, the DBF for the benefit of Hawaiian Electric, Hawaii Electric Light and Maui Electric, issued, at par: Series 2019 Special Purpose Revenue Bonds Aggregate principal amount $80 million Fixed coupon interest rate 3.50% Maturity date October 1, 2049 DBF loaned the proceeds to: Hawaiian Electric $70 million Hawaii Electric Light $2.5 million Maui Electric $7.5 million December 31 2019 2018 (dollars in thousands) Long-term debt of Utilities, net of unamortized debt issuance costs 1 $ 1,497,667 $ 1,418,802 HEI 2.99% term loan, due 2022 150,000 150,000 HEI 5.67% senior notes, due 2021 50,000 50,000 HEI 3.99% senior notes, due 2023 50,000 50,000 HEI 4.58% senior notes, due 2025 50,000 50,000 HEI 4.72% senior notes, due 2028 100,000 100,000 Hamakua Energy 4.02% notes, due 2030, secured by real and personal property of Hamakua Energy, LLC 59,699 63,438 Mauo LIBOR + 1.375% loan, due 2022 9,349 — Less unamortized debt issuance costs (2,350 ) (2,599 ) $ 1,964,365 $ 1,879,641 1 See components of “Total long-term debt” and unamortized debt issuance costs in Hawaiian Electric and subsidiaries’ Consolidated Statements of Capitalization. |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 (loss) and reclassifications, net of taxes (4,370 ) 454 2,544 (1,372 ) 454 (1,142 ) (688 ) Reclass of AOCI for tax rate reduction impact 1 (2,650 ) — (4,790 ) (7,440 ) — (209 ) (209 ) Balance, December 31, 2017 (14,951 ) — (26,990 ) (41,941 ) — (1,219 ) (1,219 ) Current period other comprehensive income (loss) and reclassifications, net of taxes (9,472 ) (436 ) 1,239 (8,669 ) — 1,318 1,318 Balance, December 31, 2018 (24,423 ) (436 ) (25,751 ) (50,610 ) — 99 99 Current period other comprehensive income (loss) and reclassifications, net of taxes 26,904 (1,177 ) 4,844 30,571 — (1,378 ) (1,378 ) Balance, December 31, 2019 $ 2,481 $ (1,613 ) $ (20,907 ) $ (20,039 ) $ — $ (1,279 ) $ (1,279 ) 1 The Company and the Utilities adopted ASU No. 2018-02 as of the beginning of the fourth quarter of 2017 and elected to reclassify the income tax effects of the Tax Act from AOCI to retained earnings. Other than this reclassification to retained earnings, the Company and the Utilities release the income tax effects in AOCI from AOCI when the specific AOCI items (e.g., on a security-by-security basis for ASB’s gains/losses on investment securities) are included in net income. |
Reclassification Out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Affected line item in the Statement of Income/Balance Sheet Years ended December 31 2019 2018 2017 (in thousands) HEI consolidated Net realized gains on securities included in net income $ (478 ) $ — $ — Revenues-bank (gains on sale of investment securities, net) Derivatives qualifying as cash flow hedges: Window forward contracts — — 454 Property, plant and equipment-electric utilities (2017) Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 10,107 21,015 15,737 See Note 10 for additional details Impact of D&Os of the PUC included in regulatory assets (16,177 ) 8,325 (78,724 ) See Note 10 for additional details Total reclassifications $ (6,548 ) $ 29,340 $ (62,533 ) Hawaiian Electric consolidated Derivatives qualifying as cash flow hedges Window forward contracts $ — $ — $ 454 Property, plant and equipment (2017) Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 9,550 19,012 14,477 See Note 10 for additional details Impact of D&Os of the PUC included in regulatory assets (16,177 ) 8,325 (78,724 ) See Note 10 for additional details Total reclassifications $ (6,627 ) $ 27,337 $ (63,793 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease cost | Amounts related to the Company’s total lease cost and cash flows arising from lease transaction are as follows: HEI consolidated Hawaiian Electric consolidated Year ended December 31, 2019 Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total (dollars in thousands) Operating lease cost $ 10,265 $ 63,319 $ 73,584 $ 4,955 $ 63,319 $ 68,274 Variable lease cost 13,034 192,138 205,172 10,272 192,138 202,410 Total lease cost $ 23,299 $ 255,457 $ 278,756 $ 15,227 $ 255,457 $ 270,684 Other information Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases $ 10,447 $ 62,594 $ 73,041 $ 5,768 $ 62,594 $ 68,362 Weighted-average remaining lease term—operating leases (in years) 6.5 2.8 3.5 4.5 2.8 2.9 Weighted-average discount rate—operating leases 3.50 % 4.08 % 3.96 % 4.11 % 4.08 % 4.08 % |
Schedule of operating lease liabilities | The following table summarizes the maturity of our operating lease liabilities as of December 31, 2019 : HEI consolidated Hawaiian Electric consolidated (in millions) Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total 2020 $ 12 $ 63 $ 75 $ 7 $ 63 $ 70 2021 10 63 73 5 63 68 2022 6 42 48 3 42 45 2023 5 — 5 2 — 2 2024 4 — 4 1 — 1 Thereafter 9 — 9 2 — 2 Total lease payments 46 168 214 20 168 188 Less: Imputed interest (5 ) (9 ) (14 ) (2 ) (9 ) (11 ) Total present value of lease payments 1 $ 41 $ 159 $ 200 $ 18 $ 159 $ 177 1 The fixed capacity payment related to the existing PPA with PGV, which will expire on December 31, 2027, is not included as a lease liability as of December 31, 2019 as the facility has been offline since May 2018 due to lava flow on Hawaii Island. The annual capacity payment is approximately $7 million . The lease liability will be remeasured when PGV is back in service. |
Schedule of future minimum rental payments for operating leases under 842 | The future minimum lease obligations under operating leases in effect as of December 31, 2018, having a term in excess of one year as determined prior to the adoption of ASC 842 are as follows: HEI consolidated Hawaiian Electric consolidated (in millions) Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total 2019 $ 11 $ 63 $ 74 $ 6 $ 63 $ 69 2020 9 63 72 6 63 69 2021 8 63 71 5 63 68 2022 5 42 47 2 42 44 2023 4 — 4 2 — 2 Thereafter 12 — 12 3 — 3 Total lease payments $ 49 $ 231 $ 280 $ 24 $ 231 $ 255 HEI’s consolidated operating lease expense prior to the adoption of ASC 842 was $21 million and $20 million in 2018 and 2017, respectively. The Utilities’ operating lease expense prior to the adoption of ASC 842 was $11 million |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following tables disaggregate revenues by major source, timing of revenue recognition, and segment: Year ended December 31, 2019 Year ended December 31, 2018 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 807,652 $ — $ — $ 807,652 $ 801,846 $ — $ — $ 801,846 Electric energy sales - commercial 846,110 — — 846,110 853,672 — — 853,672 Electric energy sales - large light and power 905,308 — — 905,308 894,770 — — 894,770 Electric energy sales - other 16,296 — — 16,296 17,243 — — 17,243 Bank fees — 46,659 — 46,659 — 47,300 — 47,300 Total revenues from contracts with customers 2,575,366 46,659 — 2,622,025 2,567,531 47,300 — 2,614,831 Revenues from other sources Regulatory revenue (54,101 ) — — (54,101 ) (37,687 ) — — (37,687 ) Bank interest and dividend income — 266,554 — 266,554 — 258,225 — 258,225 Other bank noninterest income — 15,357 — 15,357 — 8,750 — 8,750 Other 24,677 — 89 24,766 16,681 — 49 16,730 Total revenues from other sources (29,424 ) 281,911 89 252,576 (21,006 ) 266,975 49 246,018 Total revenues $ 2,545,942 $ 328,570 $ 89 $ 2,874,601 $ 2,546,525 $ 314,275 $ 49 $ 2,860,849 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 46,659 $ — $ 46,659 $ — $ 47,300 $ — $ 47,300 Services/goods transferred over time 2,575,366 — — 2,575,366 2,567,531 — — 2,567,531 Total revenues from contracts with customers $ 2,575,366 $ 46,659 $ — $ 2,622,025 $ 2,567,531 $ 47,300 $ — $ 2,614,831 |
Retirement benefits (Tables)
Retirement benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of changes in the obligations and assets of the Company's retirement benefit plans and the changes in AOCI (gross) and the funded status | The changes in the obligations and assets of the Company’s and Utilities’ retirement benefit plans and the changes in AOCI (gross) for 2019 and 2018 and the funded status of these plans and amounts related to these plans reflected in the Company’s and Utilities’ consolidated balance sheet as of December 31, 2019 and 2018 were as follows: 2019 2018 (in thousands) Pension benefits Other benefits Pension benefits Other benefits HEI consolidated Benefit obligation, January 1 $ 1,991,384 $ 188,666 $ 2,094,356 $ 212,601 Service cost 62,135 2,209 68,987 2,721 Interest cost 84,267 8,004 77,374 7,933 Actuarial losses (gains) 224,421 25,998 (171,226 ) (25,977 ) Participants contributions — 2,351 — 2,505 Benefits paid and expenses (83,924 ) (11,589 ) (78,107 ) (11,117 ) Benefit obligation, December 31 2,278,283 215,639 1,991,384 188,666 Fair value of plan assets, January 1 1,479,067 173,693 1,618,703 193,995 Actual return on plan assets 354,072 35,525 (101,406 ) (11,846 ) Employer contributions 48,629 — 38,496 — Participants contributions — 2,351 — 2,505 Benefits paid and expenses (82,568 ) (10,738 ) (76,726 ) (10,961 ) Fair value of plan assets, December 31 1,799,200 200,831 1,479,067 173,693 Accrued benefit asset (liability), December 31 $ (479,083 ) $ (14,808 ) $ (512,317 ) $ (14,973 ) Other assets $ 19,396 $ — $ 10,930 $ — Defined benefit pension and other postretirement benefit plans liability (498,479 ) (14,808 ) (523,247 ) (14,973 ) Accrued benefit asset (liability), December 31 $ (479,083 ) $ (14,808 ) $ (512,317 ) $ (14,973 ) AOCI debit, January 1 (excluding impact of PUC D&Os) $ 536,920 $ 1,962 $ 527,830 $ 1,474 Recognized during year – prior service credit 42 1,806 42 1,805 Recognized during year – net actuarial (losses) gains (15,479 ) 13 (30,084 ) (95 ) Occurring during year – net actuarial losses (gains) (17,662 ) 2,829 39,132 (1,222 ) AOCI debit before cumulative impact of PUC D&Os, December 31 503,821 6,610 536,920 1,962 Cumulative impact of PUC D&Os (474,628 ) (7,458 ) (498,944 ) (4,929 ) AOCI debit/(credit), December 31 $ 29,193 $ (848 ) $ 37,976 $ (2,967 ) Net actuarial loss $ 503,813 $ 11,707 $ 536,954 $ 8,865 Prior service cost (gain) 8 (5,097 ) (34 ) (6,903 ) AOCI debit before cumulative impact of PUC D&Os, December 31 503,821 6,610 536,920 1,962 Cumulative impact of PUC D&Os (474,628 ) (7,458 ) (498,944 ) (4,929 ) AOCI debit/(credit), December 31 29,193 (848 ) 37,976 (2,967 ) Income taxes (benefits) (7,677 ) 219 (10,023 ) 765 AOCI debit/(credit), net of taxes (benefits), December 31 $ 21,516 $ (629 ) $ 27,953 $ (2,202 ) As of December 31, 2019 and 2018, the other postretirement benefit plans shown in the table above had ABOs in excess of plan assets. 2019 2018 (in thousands) Pension benefits Other benefits Pension benefits Other benefits Hawaiian Electric consolidated Benefit obligation, January 1 $ 1,837,653 $ 181,162 $ 1,928,648 $ 204,644 Service cost 60,461 2,191 67,359 2,704 Interest cost 77,851 7,673 71,294 7,628 Actuarial losses (gains) 212,310 25,123 (158,258 ) (25,330 ) Participants contributions — 2,311 — 2,472 Benefits paid and expenses (77,060 ) (11,382 ) (71,535 ) (10,958 ) Transfers (311 ) (5 ) 145 2 Benefit obligation, December 31 2,110,904 207,073 1,837,653 181,162 Fair value of plan assets, January 1 1,343,113 170,862 1,468,403 190,814 Actual return on plan assets 326,204 34,928 (91,836 ) (11,625 ) Employer contributions 47,808 — 37,550 — Participants contributions — 2,311 — 2,472 Benefits paid and expenses (76,581 ) (10,532 ) (71,060 ) (10,801 ) Other (127 ) (5 ) 56 2 Fair value of plan assets, December 31 1,640,417 197,564 1,343,113 170,862 Accrued benefit liability, December 31 $ (470,487 ) $ (9,509 ) $ (494,540 ) $ (10,300 ) Other liabilities (short-term) (518 ) (715 ) (512 ) (669 ) Defined benefit pension and other postretirement benefit plans liability (469,969 ) (8,794 ) (494,028 ) (9,631 ) Accrued benefit liability, December 31 $ (470,487 ) $ (9,509 ) $ (494,540 ) $ (10,300 ) AOCI debit, January 1 (excluding impact of PUC D&Os) $ 502,189 $ 1,551 $ 493,464 $ 839 Recognized during year – prior service credit (cost) (7 ) 1,803 (8 ) 1,803 Recognized during year – net actuarial losses (14,658 ) — (27,302 ) (98 ) Occurring during year – net actuarial losses (gains) (9,446 ) 2,376 36,035 (993 ) AOCI debit before cumulative impact of PUC D&Os, December 31 478,078 5,730 502,189 1,551 Cumulative impact of PUC D&Os (474,628 ) (7,458 ) (498,944 ) (4,929 ) AOCI debit/(credit), December 31 $ 3,450 $ (1,728 ) $ 3,245 $ (3,378 ) Net actuarial loss $ 478,069 $ 10,815 $ 502,173 $ 8,439 Prior service cost (gain) 9 (5,085 ) 16 (6,888 ) AOCI debit before cumulative impact of PUC D&Os, December 31 478,078 5,730 502,189 1,551 Cumulative impact of PUC D&Os (474,628 ) (7,458 ) (498,944 ) (4,929 ) AOCI debit/(credit), December 31 3,450 (1,728 ) 3,245 (3,378 ) Income taxes (benefits) (888 ) 445 (836 ) 870 AOCI debit/(credit), net of taxes (benefits), December 31 $ 2,562 $ (1,283 ) $ 2,409 $ (2,508 ) |
Schedule of asset allocation of plan assets | The asset allocation of defined benefit retirement plans to equity and fixed income securities (excluding cash) and related investment policy targets and ranges were as follows: Pension benefits 1 Other benefits 2 Investment policy Investment policy December 31 2019 2018 Target Range 2019 2018 Target Range Assets held by category Equity securities 71 % 69 % 70 % 65-75 71 % 70 % 70 % 65-75 Fixed income securities 29 31 30 25-35 29 30 30 25-35 100 % 100 % 100 % 100 % 100 % 100 % 1 Asset allocation (excluding cash) is applicable to only HEI and the Utilities. As of December 31, 2019 and 2018 , nearly all of ASB’s pension assets were invested in fixed income securities. 2 Asset allocation (excluding cash) is applicable to only HEI and the Utilities. ASB does not fund its other benefits. Assets held in various trusts for the retirement benefit plans are measured at fair value on a recurring basis and were as follows: Pension benefits Other benefits Fair value measurements using Fair value measurements using (in millions) December 31 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs December 31 Level 1 Level 2 Level 3 2019 Equity securities $ 470 $ 470 $ — $ — $ 61 $ 61 $ — $ — Equity index and exchange-traded funds 610 610 — — 69 69 — — Equity investments at net asset value (NAV) 78 — — — 11 — — — Total equity investments 1,158 1,080 — — 141 130 — — Fixed income securities and public mutual funds 353 123 230 — 52 49 2 — Fixed income investments at NAV 245 — — — 4 — — — Total fixed income investments 598 123 230 — 56 49 2 — Cash equivalents at NAV 39 — — — 4 — — — Total 1,795 $ 1,203 $ 230 $ — 201 $ 179 $ 2 $ — Cash, receivables and payables, net 4 — Fair value of plan assets $ 1,799 $ 201 2018 Equity securities $ 507 $ 507 $ — $ — $ 65 $ 65 $ — $ — Equity index and exchange-traded funds 348 348 — — 42 42 — — Equity investments at NAV 65 — — — 10 — — — Total equity investments 920 855 — — 117 107 — — Fixed income securities and public mutual funds 310 123 187 — 47 45 2 — Fixed income investments at NAV 208 — — — 4 — — — Total fixed income investments 518 123 187 — 51 45 2 — Cash equivalents at NAV 36 — — — 5 — — — Total 1,474 $ 978 $ 187 $ — 173 $ 152 $ 2 $ — Cash, receivables and payables, net 5 1 Fair value of plan assets $ 1,479 $ 174 Pension benefits Other benefits Measured at net asset value December 31 Redemption frequency Redemption notice period December 31 Redemption frequency Redemption notice period (in millions) 2019 Non U.S. equity funds (a) $ 78 Daily-Monthly 5-30 days $ 11 Daily-Monthly 5-30 days Fixed income investments (b) 245 Monthly 15 days 4 Monthly 15 days Cash equivalents (c) 39 Daily 0-1 day 4 Daily 0-1 day $ 362 $ 19 2018 Non U.S. equity funds (a) $ 65 Daily-Monthly 5-30 days $ 10 Daily-Monthly 5-30 days Fixed income investments (b) 208 Monthly 15 days 4 Monthly 15 days Cash equivalents (c) 36 Daily 0-1 day 5 Daily 0-1 day $ 309 $ 19 None of the investments presented in the tables above have unfunded commitments. (a) Represents investments in funds that primarily invest in non-U.S., emerging markets equities. Redemption frequency for pension benefits assets as of December 31, 2019 were: daily, 60% and monthly, 40% , and as of December 31, 2018 were daily, 32% and monthly, 68% . Redemption frequency for other benefits assets as of December 31, 2019 were: daily, 59% and monthly, 41% and as of December 31, 2018 were: daily, 27% and monthly, 73% . (b) Represents investments in fixed income securities invested in a US-dollar denominated fund that seeks to exceed the Barclays Capital Long Corporate A or better Index through investments in US-dollar denominated fixed income securities and commingled vehicles. (c) Represents investments in cash equivalent funds. This class includes funds that invest primarily in securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. For pension benefits, the fund may also invest in fixed income securities of investment grade issuers. |
Schedule of weighted-average assumptions used in accounting for plans | The following weighted-average assumptions were used in the accounting for the plans: Pension benefits Other benefits December 31 2019 2018 2017 2019 2018 2017 Benefit obligation Discount rate 3.61 % 4.31 % 3.74 % 3.52 % 4.34 % 3.72 % Rate of compensation increase 3.5 3.5 3.5 NA NA NA Net periodic pension/benefit cost (years ended) Discount rate 4.31 3.74 4.26 4.34 3.72 4.22 Expected return on plan assets 1 7.25 7.50 7.50 7.25 7.50 7.50 Rate of compensation increase 2 3.5 3.5 3.5 NA NA NA NA Not applicable 1 HEI’s and Utilities’ plan assets only. For 2019, 2018 and 2017, ASB’s expected return on plan assets was 4.51% , 3.94% and 4.46% , respectively. 2 The Company and the Utilities use a graded rate of compensation increase assumption based on age. The rate provided above is an average across all future years of service for the current population. |
Schedule of components of net periodic benefit cost for consolidated HEI | The components of NPPC and NPBC were as follows: Pension benefits Other benefits (in thousands) 2019 2018 2017 2019 2018 2017 HEI consolidated Service cost $ 62,135 $ 68,987 $ 64,906 $ 2,209 $ 2,721 $ 3,374 Interest cost 84,267 77,374 81,185 8,004 7,933 9,453 Expected return on plan assets (111,989 ) (108,953 ) (102,745 ) (12,356 ) (12,908 ) (12,326 ) Amortization of net prior service gain (42 ) (42 ) (55 ) (1,806 ) (1,805 ) (1,793 ) Amortization of net actuarial losses 15,479 30,084 26,496 (13 ) 95 1,130 Net periodic pension/benefit cost 49,850 67,450 69,787 (3,962 ) (3,964 ) (162 ) Impact of PUC D&Os 48,143 25,828 (18,004 ) 3,258 3,842 1,211 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 97,993 $ 93,278 $ 51,783 $ (704 ) $ (122 ) $ 1,049 Hawaiian Electric consolidated Service cost $ 60,461 $ 67,359 $ 63,059 $ 2,191 $ 2,704 $ 3,353 Interest cost 77,851 71,294 74,632 7,673 7,628 9,115 Expected return on plan assets (104,632 ) (102,368 ) (95,892 ) (12,180 ) (12,713 ) (12,147 ) Amortization of net prior service (gain) cost 7 8 8 (1,803 ) (1,803 ) (1,804 ) Amortization of net actuarial losses 14,658 27,302 24,392 — 98 1,102 Net periodic pension/benefit cost 48,345 63,595 66,199 (4,119 ) (4,086 ) (381 ) Impact of PUC D&Os 48,143 25,828 (18,004 ) 3,258 3,842 1,211 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 96,488 $ 89,423 $ 48,195 $ (861 ) $ (244 ) $ 830 |
Schedule of projected benefit obligations and assets | Additional information on the defined benefit pension plans’ accumulated benefit obligations (ABOs), which do not consider projected pay increases (unlike the PBOs shown in the table above), and pension plans with ABOs and PBOs in excess of plan assets were as follows: HEI consolidated Hawaiian Electric consolidated December 31 2019 2018 2019 2018 (in billions) Defined benefit plans - ABOs $ 2.0 $ 1.7 $ 1.8 $ 1.6 Defined benefit plans with ABO in excess of plan assets ABOs 1.9 1.6 1.8 1.6 Fair value of plan assets 1.7 1.4 1.6 1.3 Defined benefit plans with PBOs in excess of plan assets PBOs 2.2 1.9 2.1 1.8 Fair value of plan assets 1.7 1.4 1.6 1.3 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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: (in millions) 2019 2018 2017 HEI consolidated Share-based compensation expense 1 $ 10.0 $ 7.8 $ 5.4 Income tax benefit 1.4 1.1 1.9 Hawaiian Electric consolidated Share-based compensation expense 1 3.2 2.7 1.9 Income tax benefit 0.6 0.5 0.7 1 For 2019, 2018 and 2017, the Company has not capitalized any share-based compensation. |
Schedule of common stock granted to nonemployee directors | HEI granted HEI common stock to nonemployee directors under the 2011 Director Plan as follows: (dollars in millions) 2019 2018 2017 Shares granted 36,344 38,821 35,770 Fair value $ 1.6 $ 1.3 $ 1.2 Income tax benefit 0.4 0.3 0.5 |
Schedule of restricted stock units | Information about HEI’s grants of restricted stock units was as follows: 2019 2018 2017 Shares (1) Shares (1) Shares (1) Outstanding, January 1 200,358 $ 33.05 197,047 $ 31.53 220,683 $ 29.57 Granted 96,565 37.82 93,853 34.12 97,873 33.47 Vested (76,813 ) 32.61 (75,683 ) 30.56 (92,147 ) 28.88 Forfeited (12,469 ) 34.20 (14,859 ) 32.35 (29,362 ) 31.57 Outstanding, December 31 207,641 $ 35.36 200,358 $ 33.05 197,047 $ 31.53 Total weighted-average grant-date fair value of shares granted (in millions) $ 3.7 $ 3.2 $ 3.3 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
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: 2019 2018 2017 Shares (1) Shares (1) Shares (1) Outstanding, January 1 65,578 $ 38.81 32,904 $ 39.51 83,106 $ 22.95 Granted 35,215 41.07 37,832 38.21 37,204 39.51 Vested (issued or unissued and cancelled) — — — — (83,106 ) 22.95 Forfeited (4,391 ) 39.19 (5,158 ) 38.84 (4,300 ) 39.51 Outstanding, December 31 96,402 $ 39.62 65,578 $ 38.81 32,904 $ 39.51 Total weighted-average grant-date fair value of shares granted (in millions) $ 1.4 $ 1.4 $ 1.5 (1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. |
Schedule of assumptions used to determine the fair value of Long-Term Incentive Plan (LTIP) linked to total return to shareholders (TRS) | The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TSR and the resulting fair value of LTIP awards granted: 2019 2018 2017 Risk-free interest rate 2.48 % 2.29 % 1.46 % Expected life in years 3 3 3 Expected volatility 15.8 % 17.0 % 20.1 % Range of expected volatility for Peer Group 15.0% to 73.2% 15.1% to 26.2% 15.4% to 26.0% Grant date fair value (per share) $ 41.07 $ 38.20 $ 39.51 |
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: 2019 2018 2017 Shares (1) Shares (1) Shares (1) Outstanding, January 1 276,169 $ 33.80 131,616 $ 33.47 109,816 $ 25.18 Granted 140,855 37.78 151,328 34.12 148,818 33.47 Vested — — — — (109,816 ) 25.18 Increase above target (cancelled) 4,314 33.53 13,858 33.49 — — Forfeited (17,570 ) 34.66 (20,633 ) 33.80 (17,202 ) 33.48 Outstanding, December 31 403,768 $ 35.15 276,169 $ 33.80 131,616 $ 33.47 Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) $ 5.3 $ 5.2 $ 5.0 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of income taxes attributable to net income for common stock | The components of income taxes attributable to net income for common stock were as follows: HEI consolidated Hawaiian Electric consolidated Years ended December 31 2019 2018 2017 2019 2018 2017 (in thousands) Federal Current $ 28,736 $ 42,903 $ 61,534 $ 21,751 $ 29,649 $ 36,267 Deferred* (4,353 ) (6,099 ) 33,967 (7,793 ) (5,245 ) 35,229 Deferred tax credits, net** 13,410 (12 ) (20 ) 13,155 (12 ) (20 ) 37,793 36,792 95,481 27,113 24,392 71,476 State Current 10,472 17,361 10,076 5,579 13,210 8,947 Deferred (10,732 ) (3,269 ) 3,868 (8,491 ) (2,737 ) 2,808 Deferred tax credits, net** 14,104 (87 ) (32 ) 14,104 (87 ) (32 ) 13,844 14,005 13,912 11,192 10,386 11,723 Total $ 51,637 $ 50,797 $ 109,393 $ 38,305 $ 34,778 $ 83,199 * The 2018 deferred income tax expense includes the final adjustment to reduce the provisional amount recorded in 2017 pursuant to Staff Accounting Bulletin No. 118 (SAB No. 118). See “Major tax developments” disclosure below for details of the accounting for the enactment of the Tax Act. ** Represents 2019 federal and state tax credits, primarily related to the West Loch PV project, deferred and amortized starting in 2020. See West Loch PV Project discussion in Note 3. |
Schedule of reconciliation of amount of income taxes computed at federal statutory rate | A reconciliation of the amount of income taxes computed at the federal statutory rate to the amount provided in the consolidated statements of income was as follows: HEI consolidated Hawaiian Electric consolidated Years ended December 31 2019 2018 2017 2019 2018 2017 (in thousands) Amount at the federal statutory income tax rate $ 56,996 $ 53,437 $ 96,796 $ 41,399 $ 37,889 $ 71,801 Increase (decrease) resulting from: State income taxes, net of federal income tax benefit 11,658 11,832 9,789 8,703 8,080 7,584 Net deferred tax asset (liability) adjustment related to the Tax Act (9,255 ) (9,540 ) 13,420 (9,255 ) (9,285 ) 9,168 Other, net (7,762 ) (4,932 ) (10,612 ) (2,542 ) (1,906 ) (5,354 ) Total $ 51,637 $ 50,797 $ 109,393 $ 38,305 $ 34,778 $ 83,199 Effective income tax rate 19.0 % 20.0 % 39.6 % 19.4 % 19.3 % 40.6 % |
Schedule of deferred tax assets and liabilities | The tax effects of book and tax basis differences that give rise to deferred tax assets and liabilities were as follows: HEI consolidated Hawaiian Electric consolidated December 31 2019 2018 2019 2018 (in thousands) Deferred tax assets Regulatory liabilities, excluding amounts attributable to property, plant and equipment $ 100,427 $ 104,868 $ 100,427 $ 104,868 Operating lease liabilities 51,573 — 45,608 — Allowance for bad debts 14,858 14,647 560 659 Other 1 54,028 46,036 41,181 26,522 Total deferred tax assets 220,886 165,551 187,776 132,049 Deferred tax liabilities Property, plant and equipment related 464,312 437,644 458,349 434,831 Operating lease right-of-use assets 51,542 — 45,608 — Regulatory assets, excluding amounts attributable to property, plant and equipment 33,897 37,345 33,897 37,345 Deferred RAM and RBA revenues — 11,278 — 11,278 Retirement benefits 9,684 20,173 13,072 25,430 Other 40,776 31,629 14,001 6,362 Total deferred tax liabilities 600,211 538,069 564,927 515,246 Net deferred income tax liability $ 379,325 $ 372,518 $ 377,151 $ 383,197 1 As of December 31, 2019, HEI consolidated and Hawaiian Electric consolidated have deferred tax assets of $8.7 million and $6.7 million respectively, relating to the benefit of state tax credit carryforwards of $11.7 million and $9 million respectively. These state tax credit carryforwards primarily relate to the West Loch PV project and do not expire. The Company concluded that as of December 31, 2019, a valuation allowance is not required. |
Schedule of changes in total unrecognized tax benefits | The following is a reconciliation of the Company’s liability for unrecognized tax benefits for 2019 , 2018 and 2017 . HEI consolidated Hawaiian Electric consolidated (in millions) 2019 2018 2017 2019 2018 2017 Unrecognized tax benefits, January 1 $ 2.1 $ 4.0 $ 3.8 $ 1.6 $ 3.5 3.8 Additions based on tax positions taken during the year 0.5 0.3 0.9 0.5 0.3 0.4 Reductions based on tax positions taken during the year — — (0.2 ) — — (0.2 ) Additions for tax positions of prior years 0.1 0.1 — 0.1 0.1 — Reductions for tax positions of prior years (0.2 ) (0.1 ) (0.5 ) (0.2 ) (0.1 ) (0.5 ) Lapses of statute of limitations (0.3 ) (2.2 ) — (0.3 ) (2.2 ) — Unrecognized tax benefits, December 31 $ 2.2 $ 2.1 $ 4.0 $ 1.7 $ 1.6 $ 3.5 |
Cash flows (Tables)
Cash flows (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash and noncash activity | Years ended December 31 2019 2018 2017 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates, net of amounts capitalized $ 107 $ 102 $ 83 Income taxes paid (including refundable credits) 56 72 55 Income taxes refunded (including refundable credits) 4 34 1 Hawaiian Electric consolidated Interest paid to non-affiliates, net of amounts capitalized 68 73 63 Income taxes paid (including refundable credits) 55 64 26 Income taxes refunded (including refundable credits) 4 31 — Supplemental disclosures of noncash activities HEI consolidated Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 64 59 38 Loans transferred from held for investment to held for sale (investing) — 1 41 Common stock issued (gross) for director and executive/management compensation (financing) 1 5 4 11 Obligations to fund low income housing investments, net (investing) 11 12 13 Transfer of retail repurchase agreements to deposit liabilities (financing) — 102 — Hawaiian Electric consolidated Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 62 44 38 HEI Consolidated and Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 9 14 18 Acquisition of Hawaiian Telcom’s interest in joint poles (investing) — 48 — 1 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) | 12 Months Ended |
Dec. 31, 2019 | |
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. Estimated fair value (in thousands) Carrying or notional amount Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs Total December 31, 2019 Financial assets HEI consolidated Available-for-sale investment securities $ 1,232,826 $ — $ 1,204,229 $ 28,597 $ 1,232,826 Held-to-maturity investment securities 139,451 — 143,467 — 143,467 Stock in Federal Home Loan Bank 8,434 — 8,434 — 8,434 Loans, net 5,080,107 — 12,295 5,145,242 5,157,537 Mortgage servicing rights 9,101 — — 12,379 12,379 Derivative assets 25,179 — 300 — 300 Financial liabilities HEI consolidated Deposit liabilities 769,825 — 765,976 — 765,976 Short-term borrowings—other than bank 185,710 — 185,710 — 185,710 Other bank borrowings 115,110 — 115,107 — 115,107 Long-term debt, net—other than bank 1,964,365 2,156,927 2,156,927 Derivative liabilities 51,375 33 2,185 — 2,218 Hawaiian Electric consolidated Short-term borrowings 88,987 — 88,987 — 88,987 Long-term debt, net 1,497,667 — 1,670,189 — 1,670,189 December 31, 2018 Financial assets HEI consolidated Available-for-sale investment securities $ 1,388,533 $ — $ 1,364,897 $ 23,636 $ 1,388,533 Held-to-maturity investment securities 141,875 — 142,057 — 142,057 Stock in Federal Home Loan Bank 9,958 — 9,958 — 9,958 Loans, net 4,792,707 — 1,809 4,800,244 4,802,053 Mortgage servicing rights 8,062 — — 13,618 13,618 Derivative assets 10,180 — 91 — 91 Financial liabilities HEI consolidated Deposit liabilities 827,841 — 817,667 — 817,667 Short-term borrowings—other than bank 73,992 — 73,992 — 73,992 Other bank borrowings 110,040 — 110,037 — 110,037 Long-term debt, net—other than bank 1,879,641 — 1,904,261 — 1,904,261 Derivative liabilities 34,132 34 596 — 630 Hawaiian Electric consolidated Short-term borrowings 25,000 — 25,000 — 25,000 Long-term debt, net 1,418,802 — 1,443,968 — 1,443,968 |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis were as follows: December 31 2019 2018 Fair value measurements using Fair value measurements using (in thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Available-for-sale investment securities (bank segment) Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ — $ 1,026,385 $ — $ — $ 1,161,416 $ — U.S. Treasury and federal agency obligations — 117,787 — — 154,349 — Corporate bonds — 60,057 — — 49,132 — Mortgage revenue bonds — — 28,597 — — 23,636 $ — $ 1,204,229 $ 28,597 $ — $ 1,364,897 $ 23,636 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 297 $ — $ — $ 91 $ — Forward commitments (bank segment) 1 — 3 — — — — $ — $ 300 $ — $ — $ 91 $ — Derivative liabilities Interest rate lock commitments (bank segment) 1 $ — $ — $ — $ — $ — $ — Forward commitments (bank segment) 1 33 12 — 34 9 — Interest rate swap (Other segment) 2 — 2,173 — — 587 — $ 33 $ 2,185 $ — $ 34 $ 596 $ — 1 Derivatives are carried at fair value in other assets or other liabilities in the balance sheets with changes in value included in mortgage banking income. 2 Derivatives are included in Other liabilities in the balance sheets. |
Schedule of 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: (in thousands) 2019 2018 Mortgage revenue bonds Balance, January 1 $ 23,636 $ 15,427 Principal payments received — — Purchases 4,961 8,209 Unrealized gain (loss) included in other comprehensive income — — Balance, December 31 $ 28,597 $ 23,636 |
Schedule of assets measured at fair value on a nonrecurring basis | The carrying value of assets measured at fair value on a nonrecurring basis were as follows: Fair value measurements using (in thousands) Balance Level 1 Level 2 Level 3 December 31, 2019 Loans $ 25 $ — $ — $ 25 December 31, 2018 Loans 77 — — 77 Real estate acquired in settlement of loans 186 — — 186 |
Schedule of significant unobservable inputs used in the fair value measurement | Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows: December 31 2019 2018 (dollars in thousands) Unpaid principal balance $ 1,276,437 $ 1,188,514 Weighted average note rate 3.96 % 3.98 % Weighted average discount rate 9.3 % 10.0 % Weighted average prepayment speed 11.4 % 6.5 % 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) (dollars in thousands) Fair value Valuation technique Significant unobservable input Range Weighted December 31, 2019 Residential land $ 25 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) N/A (2) Total loans $ 25 December 31, 2018 Home equity lines of credit 77 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) N/A (2) Total loans $ 77 Real estate acquired in settlement of loans $ 186 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) N/A (2) (1) Represent percent of outstanding principal balance. (2) N/A - Not applicable. There is one asset in each fair value measurement type. |
Quarterly information (unaudi_2
Quarterly information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of selected quarterly information | Selected quarterly information was as follows: Quarters ended Years ended (in thousands, except per share amounts) March 31 June 30 Sept. 30 Dec. 31 December 31 HEI consolidated 2019 Revenues $ 661,615 $ 715,485 $ 771,535 $ 725,966 $ 2,874,601 Operating income 1 77,937 72,634 97,308 100,795 348,674 Net income 1 46,161 42,985 63,890 66,736 219,772 Net income for common stock 1 45,688 42,512 63,419 66,263 217,882 Basic earnings per common share 1,2 0.42 0.39 0.58 0.61 2.00 Diluted earnings per common share 1,3 0.42 0.39 0.58 0.61 1.99 Dividends per common share 0.32 0.32 0.32 0.32 1.28 2018 Revenues $ 645,874 $ 685,277 $ 768,048 $ 761,650 $ 2,860,849 Operating income 71,889 78,799 98,064 84,604 333,356 Net income 40,720 46,527 66,371 50,046 203,664 Net income for common stock 40,247 46,054 65,900 49,573 201,774 Basic earnings per common share 2 0.37 0.42 0.61 0.46 1.85 Diluted earnings per common share 3 0.37 0.42 0.60 0.45 1.85 Dividends per common share 0.31 0.31 0.31 0.31 1.24 Hawaiian Electric consolidated 2019 Revenues $ 578,495 $ 633,784 $ 688,330 $ 645,333 $ 2,545,942 Operating income 56,560 55,694 71,793 70,331 254,378 Net income 32,625 33,073 47,277 45,860 158,835 Net income for common stock 32,126 32,574 46,779 45,361 156,840 2018 Revenues $ 570,427 $ 608,126 $ 687,409 $ 680,563 2,546,525 Operating income 51,369 55,144 74,036 61,112 241,661 Net income 27,974 31,668 50,210 35,796 145,648 Net income for common stock 27,475 31,169 49,712 35,297 143,653 Note: HEI owns all of Hawaiian Electric’s common stock, therefore per share data for Hawaiian Electric is not meaningful. 1 Operating income for the fourth quarter of 2019 includes gains on property sales totaling $10.8 million , and net income and net income for common stock includes $7.9 million (or $0.07 per share (basic and diluted) at ASB’s 26.8% statutory tax rate). 2 The quarterly basic earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter. 3 The quarterly diluted earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter plus the dilutive incremental shares at quarter end. |
Summary of significant accoun_4
Summary of significant accounting policies - General, Cash, and PPE (Details) | Feb. 02, 2018MWhMW | Nov. 24, 2017MW | Dec. 31, 2019USD ($)MW | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ | $ 30,872,000 | $ 0 | $ 0 | ||
Composite annual depreciation rate | 3.20% | 3.20% | 3.20% | ||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful life under production plant (in years) | 16 years | ||||
Estimated useful life under transmission and distribution plant (in years) | 10 years | ||||
Estimated useful life under general plant (in years) | 5 years | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful life under production plant (in years) | 88 years | ||||
Estimated useful life under transmission and distribution plant (in years) | 79 years | ||||
Estimated useful life under general plant (in years) | 65 years | ||||
Hamakua Energy Partners, L.P. (HEP) | |||||
Significant Accounting Policies [Line Items] | |||||
Power produced by power plants (in megawatts) | MW | 60 | 60 | |||
Mauo, LLC | |||||
Significant Accounting Policies [Line Items] | |||||
Power produced by power plants (in megawatts) | MW | 8.6 | ||||
Power storage capacity (in megawatt hours) | MWh | 42.3 | ||||
American Savings Bank (ASB) | |||||
Significant Accounting Policies [Line Items] | |||||
Reserve requirement | $ | $ 26,200,000 | $ 28,100,000 |
Summary of significant accoun_5
Summary of significant accounting policies - Earnings per share (HEI only) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Antidilutive securities outstanding (in shares) | 0 | 0 | 0 |
Summary of significant accoun_6
Summary of significant accounting policies - Changes In Accounting Standard Updates (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, liability | $ 199,571 | |
Operating lease right-of-use-assets | 199,171 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, liability | $ 257,000 | |
Operating lease right-of-use-assets | 257,000 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use-assets | $ 176,809 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, liability | 236,000 | |
Operating lease right-of-use-assets | 236,000 | |
Power Purchase Agreement | Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, liability | 215,000 | |
Operating lease right-of-use-assets | $ 215,000 |
Summary of significant accoun_7
Summary of significant accounting policies - Accounts Receivable and Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2020 | Dec. 31, 2016 | |
Allowance for Credit Losses | |||||
Allowance for credit losses | $ 53,355,000 | $ 52,119,000 | $ 53,637,000 | $ 55,533,000 | |
Retained earnings | 622,042,000 | 543,623,000 | |||
Accounts Receivable | |||||
Allowance for customer accounts receivable, accrued unbilled revenues and other accounts receivable | 1,400,000 | 1,500,000 | |||
Goodwill and other intangibles | |||||
Goodwill | 82,190,000 | 82,190,000 | |||
American Savings Bank (ASB) | |||||
Allowance for Credit Losses | |||||
Retained earnings | 358,259,000 | 325,286,000 | |||
Investment Securities | |||||
Other than temporary impairment, investments | $ 0 | 0 | 0 | ||
Loans modified in a troubled debt restructuring | |||||
Number of consecutive months of repayment required for loans to be removed from nonaccrual status | 6 months | ||||
Goodwill and other intangibles | |||||
Goodwill | $ 82,190,000 | 82,190,000 | |||
Goodwill impairment | 0 | 0 | $ 0 | ||
Low-income housing investments | 66,302,000 | 67,626,000 | |||
Commitments to fund affordable housing investments | $ 23,400,000 | $ 18,100,000 | |||
American Savings Bank (ASB) | Measurement Band A | |||||
Goodwill and other intangibles | |||||
Risks inherent in servicing assets and servicing liabilities band percent for risk categorization | 0.50% | ||||
American Savings Bank (ASB) | Measurement Band B | |||||
Goodwill and other intangibles | |||||
Risks inherent in servicing assets and servicing liabilities band percent for risk categorization | 1.00% | ||||
American Savings Bank (ASB) | Loans receivable | |||||
Nonperforming loans | |||||
Period for classification as delinquent | 90 days | ||||
American Savings Bank (ASB) | Mortgage receivable | |||||
Nonperforming loans | |||||
Period for classification as delinquent | 180 days | ||||
American Savings Bank (ASB) | Consumer | |||||
Nonperforming loans | |||||
Period for write-off | 120 days | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Electric utility revenues | |||||
Weighted average AFUDC rate | 7.40% | 7.30% | 7.70% | ||
Forecast [Member] | ASU 2016-13 | Minimum | |||||
Allowance for Credit Losses | |||||
Allowance for credit losses | $ 18,000,000 | ||||
Retained earnings | 18,000,000 | ||||
Forecast [Member] | ASU 2016-13 | Maximum | |||||
Allowance for Credit Losses | |||||
Allowance for credit losses | 22,000,000 | ||||
Retained earnings | $ 22,000,000 |
Summary of significant accoun_8
Summary of significant accounting policies - Summary of Income Tax Expense Related to Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Tax Credit Carryforward [Line Items] | |||
Net benefit to income tax expense | $ (51,637) | $ (50,797) | $ (109,393) |
American Savings Bank (ASB) | |||
Tax Credit Carryforward [Line Items] | |||
Net benefit to income tax expense | (23,061) | (24,069) | (31,719) |
American Savings Bank (ASB) | Variable Interest Entity, Not Primary Beneficiary | |||
Tax Credit Carryforward [Line Items] | |||
Amortization recognized in the provision for income taxes | (7,900) | (7,700) | (7,400) |
Tax credits and other tax benefits recognized in the provision for income taxes | 11,900 | 10,900 | 10,700 |
Net benefit to income tax expense | $ 4,000 | $ 3,200 | $ 3,300 |
Segment financial information_2
Segment financial information (Details) $ in Thousands | Feb. 02, 2018MWhprojectMW | Nov. 24, 2017MW | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)MW | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Segment financial information | |||||||||||||
Revenues | $ 725,966 | $ 771,535 | $ 715,485 | $ 661,615 | $ 761,650 | $ 768,048 | $ 685,277 | $ 645,874 | $ 2,874,601 | $ 2,860,849 | $ 2,555,625 | ||
Depreciation and amortization | 278,113 | 255,629 | 221,998 | ||||||||||
Interest expense, net | 109,339 | 104,216 | 91,128 | ||||||||||
Income (loss) before income taxes | 271,409 | 254,461 | 276,580 | ||||||||||
Income taxes (benefit) | 51,637 | 50,797 | 109,393 | ||||||||||
Net income (loss) | 66,736 | 63,890 | 42,985 | 46,161 | 50,046 | 66,371 | 46,527 | 40,720 | 219,772 | 203,664 | 167,187 | ||
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | ||||||||||
Net income for common stock | 66,263 | $ 63,419 | $ 42,512 | $ 45,688 | 49,573 | $ 65,900 | $ 46,054 | $ 40,247 | 217,882 | 201,774 | 165,297 | ||
Capital expenditures | 457,520 | 537,369 | 495,187 | ||||||||||
Assets | 13,745,251 | 13,104,051 | 13,745,251 | 13,104,051 | 12,534,160 | ||||||||
Electric utility | |||||||||||||
Segment financial information | |||||||||||||
Revenues | 2,545,942 | 2,546,525 | 2,257,566 | ||||||||||
Depreciation and amortization | 245,362 | 230,228 | 201,282 | ||||||||||
Interest expense, net | 70,842 | 73,348 | 69,637 | ||||||||||
Income (loss) before income taxes | 197,140 | 180,426 | 205,145 | ||||||||||
Income taxes (benefit) | 38,305 | 34,778 | 83,199 | ||||||||||
Net income (loss) | 158,835 | 145,648 | 121,946 | ||||||||||
Preferred stock dividends of subsidiaries | 1,995 | 1,995 | 1,995 | ||||||||||
Net income for common stock | 156,840 | 143,653 | 119,951 | ||||||||||
Capital expenditures | 419,898 | 415,264 | 376,865 | ||||||||||
Assets | 6,388,682 | 5,967,503 | 6,388,682 | 5,967,503 | 5,630,613 | ||||||||
Bank | |||||||||||||
Segment financial information | |||||||||||||
Revenues | 328,570 | 314,275 | 297,640 | ||||||||||
Depreciation and amortization | 28,675 | 21,443 | 19,416 | ||||||||||
Interest expense, net | 18,440 | 15,539 | 12,156 | ||||||||||
Income (loss) before income taxes | 112,034 | 106,578 | 98,716 | ||||||||||
Income taxes (benefit) | 23,061 | 24,069 | 31,719 | ||||||||||
Net income (loss) | 88,973 | 82,509 | 66,997 | ||||||||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | ||||||||||
Net income for common stock | 88,973 | 82,509 | 66,997 | ||||||||||
Capital expenditures | 24,175 | 72,666 | 53,272 | ||||||||||
Assets | 7,233,017 | 7,027,894 | 7,233,017 | 7,027,894 | 6,798,659 | ||||||||
Other | |||||||||||||
Segment financial information | |||||||||||||
Revenues | 89 | 49 | 419 | ||||||||||
Depreciation and amortization | 4,076 | 3,958 | 1,300 | ||||||||||
Interest expense, net | 20,057 | 15,329 | 9,335 | ||||||||||
Income (loss) before income taxes | (37,765) | (32,543) | (27,281) | ||||||||||
Income taxes (benefit) | (9,729) | (8,050) | (5,525) | ||||||||||
Net income (loss) | (28,036) | (24,493) | (21,756) | ||||||||||
Preferred stock dividends of subsidiaries | (105) | (105) | (105) | ||||||||||
Net income for common stock | (27,931) | (24,388) | (21,651) | ||||||||||
Capital expenditures | 13,447 | 18,840 | 317 | ||||||||||
Assets | $ 123,552 | $ 108,654 | 123,552 | 108,654 | 104,888 | ||||||||
Operating Segments | Electric utility | |||||||||||||
Segment financial information | |||||||||||||
Revenues | 2,545,865 | 2,546,472 | 2,257,455 | ||||||||||
Operating Segments | Bank | |||||||||||||
Segment financial information | |||||||||||||
Revenues | 328,570 | 314,275 | 297,640 | ||||||||||
Operating Segments | Other | |||||||||||||
Segment financial information | |||||||||||||
Revenues | 166 | 102 | 530 | ||||||||||
Intersegment eliminations | Electric utility | |||||||||||||
Segment financial information | |||||||||||||
Revenues | 77 | 53 | 111 | ||||||||||
Intersegment eliminations | Bank | |||||||||||||
Segment financial information | |||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||
Intersegment eliminations | Other | |||||||||||||
Segment financial information | |||||||||||||
Revenues | $ (77) | $ (53) | $ (111) | ||||||||||
Hamakua Energy Partners, L.P. (HEP) | |||||||||||||
Segment financial information | |||||||||||||
Power produced by power plants (in megawatts) | MW | 60 | 60 | |||||||||||
Mauo, LLC | |||||||||||||
Segment financial information | |||||||||||||
Power produced by power plants (in megawatts) | MW | 8.6 | ||||||||||||
Power storage capacity (in megawatt hours) | MWh | 42.3 | ||||||||||||
Power purchase agreement term | 15 years | ||||||||||||
Power purchase agreement extension term | 5 years | ||||||||||||
Number of project sites expected to be placed in service during 2019 and 2020 | project | 5 |
Electric utility segment - Regu
Electric utility segment - Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Regulatory assets | ||
Regulatory assets | $ 715,080 | $ 833,426 |
Regulatory liabilities | ||
Regulatory liabilities | $ 972,310 | 950,236 |
Minimum | Income taxes | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 1 year | |
Minimum | Decoupling revenue balancing account and RAM | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 1 year | |
Maximum | Income taxes | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 55 years | |
Maximum | Decoupling revenue balancing account and RAM | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 2 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Regulatory assets | ||
Regulatory assets | $ 715,080 | 833,426 |
Regulatory liabilities | ||
Regulatory liabilities | 972,310 | 950,236 |
Hawaiian Electric Company, Inc. and Subsidiaries | Cost of removal in excess of salvage value | ||
Regulatory liabilities | ||
Regulatory liabilities | 521,977 | 491,006 |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes | ||
Regulatory liabilities | ||
Regulatory liabilities | 386,990 | 413,339 |
Hawaiian Electric Company, Inc. and Subsidiaries | Decoupling revenue balancing account and RAM | ||
Regulatory liabilities | ||
Regulatory liabilities | 16,370 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans | ||
Regulatory liabilities | ||
Regulatory liabilities | 21,707 | 19,129 |
Hawaiian Electric Company, Inc. and Subsidiaries | Other | ||
Regulatory liabilities | ||
Regulatory liabilities | $ 25,266 | 26,762 |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Cost of removal in excess of salvage value | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Other | ||
Regulatory liabilities | ||
Remaining amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | Cost of removal in excess of salvage value | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 60 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | Other | ||
Regulatory liabilities | ||
Remaining amortization or recovery periods | 19 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Current assets | ||
Regulatory assets | ||
Regulatory assets | $ 30,710 | 71,016 |
Hawaiian Electric Company, Inc. and Subsidiaries | Long-term assets | ||
Regulatory assets | ||
Regulatory assets | 684,370 | 762,410 |
Hawaiian Electric Company, Inc. and Subsidiaries | Current liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | 30,724 | 17,977 |
Hawaiian Electric Company, Inc. and Subsidiaries | Long-term liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | 941,586 | 932,259 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans (balance primarily varies with plans’ funded statuses) | ||
Regulatory assets | ||
Regulatory assets | 554,485 | 624,126 |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes | ||
Regulatory assets | ||
Regulatory assets | $ 102,612 | 114,076 |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes | Minimum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes | Maximum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 55 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Decoupling revenue balancing account and RAM | ||
Regulatory assets | ||
Regulatory assets | $ 0 | 49,560 |
Hawaiian Electric Company, Inc. and Subsidiaries | Decoupling revenue balancing account and RAM | Minimum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Decoupling revenue balancing account and RAM | Maximum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 2 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Unamortized expense and premiums on retired debt and equity issuances | ||
Regulatory assets | ||
Regulatory assets | $ 10,228 | 10,065 |
Hawaiian Electric Company, Inc. and Subsidiaries | Unamortized expense and premiums on retired debt and equity issuances | Minimum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 1 year | |
Remaining amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Unamortized expense and premiums on retired debt and equity issuances | Maximum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 20 years | |
Remaining amortization or recovery periods | 19 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Vacation earned, but not yet taken | ||
Regulatory assets | ||
Regulatory assets | $ 12,535 | 10,820 |
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Other | ||
Regulatory assets | ||
Regulatory assets | $ 35,220 | $ 24,779 |
Hawaiian Electric Company, Inc. and Subsidiaries | Other | Minimum | ||
Regulatory assets | ||
Remaining amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Other | Maximum | ||
Regulatory assets | ||
Remaining amortization or recovery periods | 39 years |
Electric utility segment - Majo
Electric utility segment - Major Customers (Details) - Hawaiian Electric Company, Inc. and Subsidiaries - Operating revenues - Customer concentration - Various federal government agencies - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Major customers | |||
Operating revenues percentage | 11.00% | 11.00% | 11.00% |
Operating revenues amount | $ 281 | $ 273 | $ 239 |
Electric utility segment - Cumu
Electric utility segment - Cumulative Preferred Stock (Details) | Dec. 31, 2019$ / shares |
Series C, D, E, H, J and K Preferred Stock | Hawaiian Electric | |
Class of Stock [Line Items] | |
Voluntary liquidation price | $ 20 |
Redemption price | 21 |
Series I Preferred Stock | Hawaiian Electric | |
Class of Stock [Line Items] | |
Voluntary liquidation price | 20 |
Redemption price | 20 |
Series G Preferred Stock | Hawaii Electric Light Company, Inc. (HELCO) | |
Class of Stock [Line Items] | |
Voluntary liquidation price | 100 |
Redemption price | 100 |
Series H Preferred Stock | Maui Electric Company, Limited (MECO) | |
Class of Stock [Line Items] | |
Voluntary liquidation price | 100 |
Redemption price | $ 100 |
Electric utility segment - Rela
Electric utility segment - Related-Party Transactions (Details) - Parent Company - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Related Party Transaction [Line Items] | |||
Amount charged to subsidiaries for general management and administrative services | $ 6,000,000 | $ 5,900,000 | $ 6,200,000 |
Short-term borrowings due to related party | 0 | ||
Hawaii Electric Light | Hamakua Energy Partners, L.P. (HEP) | |||
Related Party Transaction [Line Items] | |||
Amount charged to subsidiaries for general management and administrative services | $ 68,000,000 | $ 56,000,000 |
Electric utility segment - HECO
Electric utility segment - HECO Capital Trust III (Details) | May 15, 2019USD ($) | Mar. 31, 2004USD ($)security | Dec. 31, 2019USD ($) |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||
Interest income | $ 1,200,000 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | 2004 Trust Preferred Securities | |||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||
Number of trust preferred securities issued (in shares) | security | 2,000,000 | ||
Dividend rate on trust preferred securities | 6.50% | ||
Aggregate liquidation preference | $ 50,000,000 | ||
Securities subject o mandatory redemption, amount redeemed | $ 50,000,000 | ||
Dividend distributions on Trust Preferred Securities | 1,200,000 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Trust Common Securities | |||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||
Aggregate liquidation preference | 1,500,000 | ||
Securities subject o mandatory redemption, amount redeemed | $ 1,500,000 | ||
Common dividend | $ 37,000 | ||
Hawaiian Electric | |||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||
Principal amount of debentures | 31,500,000 | ||
Hawaii Electric Light | |||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||
Principal amount of debentures | $ 10,000,000 |
Electric utility segment - Unco
Electric utility segment - Unconsolidated Variable Interest Entities (Details) | 12 Months Ended |
Dec. 31, 2019agreemententity | |
Variable Interest Entity [Line Items] | |
Number of unconsolidated VIEs | 3 |
Hawaiian Electric Company, Inc. and Subsidiaries | |
Variable Interest Entity [Line Items] | |
Number of power purchase agreements (PPAs) | agreement | 4 |
Number of entities owning wind farms not required to be consolidated as VIE's | 2 |
Minimum potential number of IPP entities consolidated into company in the future | 1 |
Electric utility segment - Powe
Electric utility segment - Power Purchase Agreements (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
May 31, 2018MW | Jun. 30, 2015MW | May 31, 2012MW | Mar. 31, 1988MW | Dec. 31, 2019USD ($)agreementMW | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 1988MW | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Purchased power | $ 633,256 | $ 639,307 | $ 586,634 | |||||
Number of power purchase agreements (PPAs) | agreement | 4 | |||||||
Power purchase capacity excluding agreements with smaller IPPs (in megawatts) | MW | 516.5 | |||||||
Expected fixed capacity charges, 2020 | $ 51,000 | |||||||
Expected fixed capacity charges, 2021 | 38,000 | |||||||
Expected fixed capacity charges, 2022 | 38 | |||||||
Expected fixed capacity charges, 2023 | 38 | |||||||
Expected fixed capacity charges, 2024 | 38 | |||||||
Expected fixed capacity charges, 2025-2033 | 241,000 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | AES Hawaii, Inc. (AES Hawaii) | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Purchase commitment, period | 30 years | |||||||
Purchase commitment, minimum power volume required to be purchased | MW | 180 | |||||||
Purchase commitment, arbitration, additional capacity requirement | MW | 9 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Hu Honua Bioenergy | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Purchase commitment, minimum power volume required to be purchased | MW | 21.5 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Kalaeloa Partners, L.P. (Kalaeloa) | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Purchase commitment, minimum power volume required to be purchased | MW | 208 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Kalaeloa Partners, L.P. (Kalaeloa) | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Purchased power | 214,000 | 216,000 | 180,000 | |||||
Hawaiian Electric Company, Inc. and Subsidiaries | AES Hawaii, Inc. (AES Hawaii) | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Purchased power | 139,000 | 140,000 | 140,000 | |||||
Hawaiian Electric Company, Inc. and Subsidiaries | HPOWER | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Purchased power | 76,000 | 69,000 | 67,000 | |||||
Hawaiian Electric Company, Inc. and Subsidiaries | Puna Geothermal Venture | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Purchased power | 0 | 15,000 | 38,000 | |||||
Hawaiian Electric Company, Inc. and Subsidiaries | Hamakua Energy Partners, L.P. (HEP) | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Purchased power | 68,000 | 56,000 | 35,000 | |||||
Hawaiian Electric Company, Inc. and Subsidiaries | Wind IPPs | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Purchased power | 95,000 | 107,000 | 97,000 | |||||
Hawaiian Electric Company, Inc. and Subsidiaries | Solar IPPs | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Purchased power | 36,000 | 29,000 | 27,000 | |||||
Hawaiian Electric Company, Inc. and Subsidiaries | Other IPPs | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Purchased power | $ 5,000 | $ 7,000 | $ 3,000 | |||||
PGV Facility | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Power purchase capacity excluding agreements with smaller IPPs (in megawatts) | MW | 34.6 |
Electric utility segment - Util
Electric utility segment - Utility Projects (Details) - Hawaiian Electric Company, Inc. and Subsidiaries | Jun. 10, 2019USD ($) | Aug. 11, 2016USD ($) | Nov. 30, 2019USD ($)$ / kWhMW | Dec. 31, 2019USD ($) |
ERP/EAM Implementation Project | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
ERP/EAM cost recovery cap | $ 77,600,000 | |||
ERP/EAM required pass-through savings | $ 246,000,000 | |||
ERP/EAM project service period (in years) | 12 years | 12 years | ||
Weighted average AFUDC rate | 1.75% | |||
ERP/EAM implementation project costs, accrued carrying costs once put into service | $ 59,300,000 | |||
ERP/EAM implementation project, expected future O&M expense reductions | $ 150,000,000 | |||
ERP/EAM implementation project, future cost avoidance related to capital costs and tax costs | $ 96,000,000 | |||
ERP/EAM regulatory liability for operation and maitenance expense reductions | 2,400,000 | |||
West Loch PV Project | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Solar project, energy production (in megawatts) | MW | 20 | |||
Solar project, project cap | $ 67,000,000 | |||
Solar project, maximum energy costs (in dollars per KWH) | $ / kWh | 0.0956 | |||
Solar project, cost incurred | 51,400,000 | |||
Federal nonrefundable tax credits | 13,400,000 | |||
State nonrefundable tax credits | $ 14,000,000 |
Electric utility segment - Envi
Electric utility segment - Environmental Regulation (Details) $ in Millions | Dec. 31, 2019USD ($) |
Maui Electric Company, Limited (MECO) | |
Environmental regulation | |
Additional accrued investigation and estimated cleanup costs | $ 2.7 |
PCB Contamination | Hawaiian Electric | |
Environmental regulation | |
Accrual for environmental loss contingencies | $ 4.2 |
Electric utility segment - Asse
Electric utility segment - Asset retirement obligations (Details) - Hawaiian Electric Company, Inc. and Subsidiaries - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Regulatory Projects and Legal Obligations [Line Items] | ||
ARO, recognition impact on earnings | $ 0 | |
Changes in the asset retirement obligation liability | ||
Balance at the beginning of the period | 8,426,000 | $ 6,035,000 |
Accretion expense | 312,000 | 282,000 |
Liabilities incurred | 1,594,000 | 1,058,000 |
Liabilities settled | (8,000) | (74,000) |
Revisions in estimated cash flows | 0 | 1,125,000 |
Balance at the end of the period | $ 10,324,000 | $ 8,426,000 |
Electric utility segment - Ma_2
Electric utility segment - Major Project Interim Recovery and Performance Incentive Mechanisms (Details) - Hawaiian Electric Company, Inc. and Subsidiaries | Feb. 07, 2020USD ($) | Mar. 25, 2019contract | Apr. 27, 2017USD ($) | Dec. 31, 2019USD ($) | May 31, 2019USD ($) | Feb. 28, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)$ / kWh |
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||
Threshold of capital expenditures in excess of customer contributions for qualification for major project interim recovery | $ 2,500,000 | |||||||||
Major project interim recovery requested amount | $ 3,600,000 | $ 19,800,000 | ||||||||
Target performance historical measurement period | 10 years | |||||||||
Service reliability, maximum penalty, percent of return on equity | 0.20% | |||||||||
Maximum penalty, pending adjusted amount | $ 6,700,000 | |||||||||
Dead band percentage above or below target | 3.00% | |||||||||
Call center performance, maximum penalty, percent | 0.80% | |||||||||
Call center performance, maximum penalty, pending adjusted amount | $ 1,300,000 | |||||||||
Call center performance, maximum penalty amount | $ 300,000 | $ 1,300,000 | $ 2,100,000 | |||||||
Performance incentive mechanism, savings calculation, energy price, renewable projects with storage capacity | $ / kWh | 0.115 | |||||||||
Performance incentive mechanism, savings calculation, energy price, renewable energy-only projects | $ / kWh | 0.095 | |||||||||
Performance incentive mechanism, expected savings percentage, phase 1 | 20.00% | |||||||||
Performance incentive mechanism, savings calculation, incentive cap | $ 3,000,000 | $ 3,500,000 | ||||||||
Performance incentive mechanism, expected savings in Phase 2, January 2019 | 15.00% | |||||||||
Performance incentive mechanism, expected savings in Phase 2, February 2019 | 10.00% | |||||||||
Performance incentive mechanism, expected savings in Phase 2, March 2019 | 5.00% | |||||||||
Performance incentive mechanism, penalty | $ 0 | |||||||||
Number of contracts which qualified for incentives | contract | 6 | |||||||||
Public utility, incentives accrued | $ 1,700,000 | |||||||||
Subsequent Event | ||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||
Major project interim recovery requested amount | $ 24,200,000 | |||||||||
Schofield Generation Station | Subsequent Event | ||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||
Major project interim recovery requested amount | 19,200,000 | |||||||||
West Loch PV Project | Subsequent Event | ||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||
Major project interim recovery requested amount | 4,500,000 | |||||||||
Grid Modernization Strategy Phase 1 Project | Subsequent Event | ||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||
Major project interim recovery requested amount | $ 500,000 |
Electric utility segment - Annu
Electric utility segment - Annual Decoupling Filings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
2019 Annual incremental RAM adjusted revenues,net of changes in Tax Act adjustment | $ 13 | |
Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery | 13.4 | |
Net annual incremental amount to be collected (refunded) under the tariffs | (1.7) | |
Net annual incremental amount to be collected (refunded) under the tariffs | (2.1) | |
Hawaiian Electric | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
2019 Annual incremental RAM adjusted revenues,net of changes in Tax Act adjustment | 6.5 | |
Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery | 12.2 | |
Net annual incremental amount to be collected (refunded) under the tariffs | (1.3) | |
Net annual incremental amount to be collected (refunded) under the tariffs | (7) | |
Hawaii Electric Light | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
2019 Annual incremental RAM adjusted revenues,net of changes in Tax Act adjustment | 1.1 | |
Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery | 2 | |
Net annual incremental amount to be collected (refunded) under the tariffs | 0 | |
Net annual incremental amount to be collected (refunded) under the tariffs | (0.9) | |
Maui Electric | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
2019 Annual incremental RAM adjusted revenues,net of changes in Tax Act adjustment | 5.4 | |
Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery | (0.8) | |
Net annual incremental amount to be collected (refunded) under the tariffs | (0.4) | |
Net annual incremental amount to be collected (refunded) under the tariffs | $ 5.8 | |
2017 Tax Act Adjustment | $ 2.8 |
Electric utility segment - Most
Electric utility segment - Most Recent Proceedings (Details) - USD ($) $ in Millions | Nov. 13, 2019 | Aug. 21, 2019 | Mar. 18, 2019 | Dec. 14, 2018 |
Hawaiian Electric | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
General rate increase, revenue, percent | 4.10% | |||
Revenue, calculation assumption, rate of return | 8.00% | |||
Stipulated return on average common equity rate | 10.50% | |||
General rate increase, revenue | $ 77.6 | |||
Maui Electric | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Stipulated return on average common equity rate | 9.50% | |||
Interim general rate increase | $ 12.2 | |||
Interim general rate increase, effective interest rate of return | 7.43% | |||
Interim general rate increase, common equity capitalization | 57.00% | |||
Interim general rate increase, rate base | $ 454 | |||
General rate increase, risk sharing percentage, ratepayer | 98.00% | |||
General rate increase, risk sharing percentage, utility | 2.00% | |||
General rate increase, maximum exposure cap | $ 0.6 | |||
Hawaii Electric Light | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
General rate increase, revenue, percent | 3.40% | |||
Revenue, calculation assumption, rate of return | 8.30% | |||
Stipulated return on average common equity rate | 9.50% | 10.50% | ||
Interim general rate increase, effective interest rate of return | 7.52% | |||
Interim general rate increase, common equity capitalization | 58.00% | |||
Interim general rate increase, rate base | $ 534 | |||
General rate increase, revenue | $ 13.4 | |||
Interim revenue requirement | $ 387 |
Electric utility segment - Cons
Electric utility segment - Consolidating Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | $ 725,966 | $ 771,535 | $ 715,485 | $ 661,615 | $ 761,650 | $ 768,048 | $ 685,277 | $ 645,874 | $ 2,874,601 | $ 2,860,849 | $ 2,555,625 |
Expenses | |||||||||||
Total expenses | 2,525,927 | 2,527,493 | 2,209,392 | ||||||||
Operating income | 100,795 | 97,308 | 72,634 | 77,937 | 84,604 | 98,064 | 78,799 | 71,889 | 348,674 | 333,356 | 346,233 |
Allowance for equity funds used during construction | 11,987 | 10,877 | 12,483 | ||||||||
Retirement defined benefits expense—other than service costs | (2,806) | (5,962) | (7,942) | ||||||||
Allowance for borrowed funds used during construction | 4,453 | 4,867 | 4,778 | ||||||||
Income before income taxes | 271,409 | 254,461 | 276,580 | ||||||||
Income taxes | 51,637 | 50,797 | 109,393 | ||||||||
Net income (loss) | 66,736 | 63,890 | 42,985 | 46,161 | 50,046 | 66,371 | 46,527 | 40,720 | 219,772 | 203,664 | 167,187 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | ||||||||
Net income for common stock | 66,263 | 63,419 | 42,512 | 45,688 | 49,573 | 65,900 | 46,054 | 40,247 | 217,882 | 201,774 | 165,297 |
Parent Company | |||||||||||
Expenses | |||||||||||
Total expenses | 20,335 | 20,621 | 17,622 | ||||||||
Retirement defined benefits expense—other than service costs | (442) | (674) | (1,119) | ||||||||
Income before income taxes | 208,075 | 193,442 | 159,765 | ||||||||
Income taxes | (9,807) | (8,332) | (5,532) | ||||||||
Net income (loss) | 217,882 | 201,774 | 165,297 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 645,333 | 688,330 | 633,784 | 578,495 | 680,563 | 687,409 | 608,126 | 570,427 | 2,545,942 | 2,546,525 | 2,257,566 |
Expenses | |||||||||||
Fuel oil | 720,709 | 760,528 | 587,768 | ||||||||
Purchased power | 633,256 | 639,307 | 586,634 | ||||||||
Other operation and maintenance | 481,737 | 461,491 | 411,907 | ||||||||
Depreciation | 215,731 | 203,626 | 192,784 | ||||||||
Taxes, other than income taxes | 240,131 | 239,912 | 214,949 | ||||||||
Total expenses | 2,291,564 | 2,304,864 | 1,994,042 | ||||||||
Operating income | 70,331 | 71,793 | 55,694 | 56,560 | 61,112 | 74,036 | 55,144 | 51,369 | 254,378 | 241,661 | 263,524 |
Allowance for equity funds used during construction | 11,987 | 10,877 | 12,483 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Retirement defined benefits expense—other than service costs | (2,836) | (3,631) | (6,003) | ||||||||
Interest expense and other charges, net | (70,842) | (73,348) | (69,637) | ||||||||
Allowance for borrowed funds used during construction | 4,453 | 4,867 | 4,778 | ||||||||
Income before income taxes | 197,140 | 180,426 | 205,145 | ||||||||
Income taxes | 38,305 | 34,778 | 83,199 | ||||||||
Net income (loss) | 45,860 | 47,277 | 33,073 | 32,625 | 35,796 | 50,210 | 31,668 | 27,974 | 158,835 | 145,648 | 121,946 |
Preferred stock dividends of subsidiaries | 915 | 915 | 915 | ||||||||
Net income attributable to Hawaiian Electric | 157,920 | 144,733 | 121,031 | ||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | ||||||||
Net income for common stock | $ 45,361 | $ 46,779 | $ 32,574 | $ 32,126 | $ 35,297 | $ 49,712 | $ 31,169 | $ 27,475 | 156,840 | 143,653 | 119,951 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Parent Company | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1,803,698 | 1,802,550 | 1,598,504 | ||||||||
Expenses | |||||||||||
Fuel oil | 494,728 | 523,706 | 408,204 | ||||||||
Purchased power | 494,215 | 494,450 | 454,189 | ||||||||
Other operation and maintenance | 319,771 | 313,346 | 274,391 | ||||||||
Depreciation | 143,470 | 137,410 | 130,889 | ||||||||
Taxes, other than income taxes | 170,979 | 170,363 | 152,933 | ||||||||
Total expenses | 1,623,163 | 1,639,275 | 1,420,606 | ||||||||
Operating income | 180,535 | 163,275 | 177,898 | ||||||||
Allowance for equity funds used during construction | 9,955 | 9,208 | 10,896 | ||||||||
Equity in earnings of subsidiaries | 43,167 | 45,393 | 38,057 | ||||||||
Retirement defined benefits expense—other than service costs | (2,287) | (2,649) | (5,049) | ||||||||
Interest expense and other charges, net | (51,199) | (52,180) | (48,277) | ||||||||
Allowance for borrowed funds used during construction | 3,666 | 4,019 | 4,089 | ||||||||
Income before income taxes | 183,837 | 167,066 | 177,614 | ||||||||
Income taxes | 25,917 | 22,333 | 56,583 | ||||||||
Net income (loss) | 157,920 | 144,733 | 121,031 | ||||||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | ||||||||
Net income attributable to Hawaiian Electric | 157,920 | 144,733 | 121,031 | ||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | ||||||||
Net income for common stock | 156,840 | 143,653 | 119,951 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaii Electric Light | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 364,590 | 375,493 | 333,467 | ||||||||
Expenses | |||||||||||
Fuel oil | 84,565 | 90,792 | 63,894 | ||||||||
Purchased power | 90,989 | 95,838 | 87,772 | ||||||||
Other operation and maintenance | 76,091 | 70,396 | 66,184 | ||||||||
Depreciation | 41,812 | 40,235 | 38,741 | ||||||||
Taxes, other than income taxes | 33,787 | 34,850 | 31,184 | ||||||||
Total expenses | 327,244 | 332,111 | 287,775 | ||||||||
Operating income | 37,346 | 43,382 | 45,692 | ||||||||
Allowance for equity funds used during construction | 816 | 478 | 554 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Retirement defined benefits expense—other than service costs | (422) | (417) | (93) | ||||||||
Interest expense and other charges, net | (10,741) | (11,836) | (11,799) | ||||||||
Allowance for borrowed funds used during construction | 342 | 276 | 238 | ||||||||
Income before income taxes | 27,341 | 31,883 | 34,592 | ||||||||
Income taxes | 5,990 | 6,868 | 13,912 | ||||||||
Net income (loss) | 21,351 | 25,015 | 20,680 | ||||||||
Preferred stock dividends of subsidiaries | 534 | 534 | 534 | ||||||||
Net income attributable to Hawaiian Electric | 20,817 | 24,481 | 20,146 | ||||||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | ||||||||
Net income for common stock | 20,817 | 24,481 | 20,146 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Maui Electric | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 378,202 | 368,700 | 325,678 | ||||||||
Expenses | |||||||||||
Fuel oil | 141,416 | 146,030 | 115,670 | ||||||||
Purchased power | 48,052 | 49,019 | 44,673 | ||||||||
Other operation and maintenance | 85,875 | 77,749 | 71,332 | ||||||||
Depreciation | 30,449 | 25,981 | 23,154 | ||||||||
Taxes, other than income taxes | 35,365 | 34,699 | 30,832 | ||||||||
Total expenses | 341,157 | 333,478 | 285,661 | ||||||||
Operating income | 37,045 | 35,222 | 40,017 | ||||||||
Allowance for equity funds used during construction | 1,216 | 1,191 | 1,033 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Retirement defined benefits expense—other than service costs | (127) | (565) | (861) | ||||||||
Interest expense and other charges, net | (9,450) | (9,550) | (9,644) | ||||||||
Allowance for borrowed funds used during construction | 445 | 572 | 451 | ||||||||
Income before income taxes | 29,129 | 26,870 | 30,996 | ||||||||
Income taxes | 6,398 | 5,577 | 12,704 | ||||||||
Net income (loss) | 22,731 | 21,293 | 18,292 | ||||||||
Preferred stock dividends of subsidiaries | 381 | 381 | 381 | ||||||||
Net income attributable to Hawaiian Electric | 22,350 | 20,912 | 17,911 | ||||||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | ||||||||
Net income for common stock | 22,350 | 20,912 | 17,911 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Other subsidiaries | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Expenses | |||||||||||
Fuel oil | 0 | 0 | 0 | ||||||||
Purchased power | 0 | 0 | 0 | ||||||||
Other operation and maintenance | 0 | 0 | 0 | ||||||||
Depreciation | 0 | 0 | 0 | ||||||||
Taxes, other than income taxes | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Operating income | 0 | 0 | 0 | ||||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Retirement defined benefits expense—other than service costs | 0 | 0 | 0 | ||||||||
Interest expense and other charges, net | 0 | 0 | |||||||||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | ||||||||
Income before income taxes | 0 | 0 | 0 | ||||||||
Income taxes | 0 | 0 | 0 | ||||||||
Net income (loss) | 0 | 0 | 0 | ||||||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | ||||||||
Net income attributable to Hawaiian Electric | 0 | 0 | 0 | ||||||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | ||||||||
Net income for common stock | 0 | 0 | 0 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Consolidating Adjustments | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | (548) | (218) | (83) | ||||||||
Expenses | |||||||||||
Fuel oil | 0 | 0 | 0 | ||||||||
Purchased power | 0 | 0 | 0 | ||||||||
Other operation and maintenance | 0 | 0 | 0 | ||||||||
Depreciation | 0 | 0 | 0 | ||||||||
Taxes, other than income taxes | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Operating income | (548) | (218) | (83) | ||||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | ||||||||
Equity in earnings of subsidiaries | (43,167) | (45,393) | (38,057) | ||||||||
Retirement defined benefits expense—other than service costs | 0 | 0 | 0 | ||||||||
Interest expense and other charges, net | 548 | 218 | 83 | ||||||||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | ||||||||
Income before income taxes | (43,167) | (45,393) | (38,057) | ||||||||
Income taxes | 0 | 0 | 0 | ||||||||
Net income (loss) | (43,167) | (45,393) | (38,057) | ||||||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | ||||||||
Net income attributable to Hawaiian Electric | (43,167) | (45,393) | (38,057) | ||||||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | ||||||||
Net income for common stock | $ (43,167) | $ (45,393) | $ (38,057) |
Electric utility segment - Co_2
Electric utility segment - Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income for common stock | $ 66,263 | $ 63,419 | $ 42,512 | $ 45,688 | $ 49,573 | $ 65,900 | $ 46,054 | $ 40,247 | $ 217,882 | $ 201,774 | $ 165,297 |
Derivatives qualified as cash flow hedges: | |||||||||||
Reclassification adjustment to net income, net of (taxes) benefit | 0 | 0 | 454 | ||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits | 10,914 | (28,101) | 65,531 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 10,107 | 21,015 | 15,737 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | (16,177) | 8,325 | (78,724) | ||||||||
Other comprehensive income (loss), net of taxes | 30,571 | (8,669) | (1,372) | ||||||||
Comprehensive income | 248,453 | 193,105 | 163,925 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income for common stock | $ 45,361 | $ 46,779 | $ 32,574 | $ 32,126 | $ 35,297 | $ 49,712 | $ 31,169 | $ 27,475 | 156,840 | 143,653 | 119,951 |
Derivatives qualified as cash flow hedges: | |||||||||||
Reclassification adjustment to net income, net of (taxes) benefit | 0 | 0 | 454 | ||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits | 5,249 | (26,019) | 63,105 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 9,550 | 19,012 | 14,477 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | (16,177) | 8,325 | (78,724) | ||||||||
Other comprehensive income (loss), net of taxes | (1,378) | 1,318 | (688) | ||||||||
Comprehensive income | 155,462 | 144,971 | 119,263 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Parent Company | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income for common stock | 156,840 | 143,653 | 119,951 | ||||||||
Derivatives qualified as cash flow hedges: | |||||||||||
Reclassification adjustment to net income, net of (taxes) benefit | 454 | ||||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits | 5,249 | (26,019) | 63,105 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 9,550 | 19,012 | 14,477 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | (16,177) | 8,325 | (78,724) | ||||||||
Other comprehensive income (loss), net of taxes | (1,378) | 1,318 | (688) | ||||||||
Comprehensive income | 155,462 | 144,971 | 119,263 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaii Electric Light | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income for common stock | 20,817 | 24,481 | 20,146 | ||||||||
Derivatives qualified as cash flow hedges: | |||||||||||
Reclassification adjustment to net income, net of (taxes) benefit | 0 | ||||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits | 373 | (6,090) | 3,093 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 1,455 | 2,819 | 1,903 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | (1,840) | 3,305 | (4,994) | ||||||||
Other comprehensive income (loss), net of taxes | (12) | 34 | 2 | ||||||||
Comprehensive income | 20,805 | 24,515 | 20,148 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Maui Electric | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income for common stock | 22,350 | 20,912 | 17,911 | ||||||||
Derivatives qualified as cash flow hedges: | |||||||||||
Reclassification adjustment to net income, net of (taxes) benefit | 0 | ||||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits | (204) | (5,004) | 7,329 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 1,182 | 2,423 | 1,619 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | (1,152) | 2,788 | (9,003) | ||||||||
Other comprehensive income (loss), net of taxes | (174) | 207 | (55) | ||||||||
Comprehensive income | 22,176 | 21,119 | 17,856 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Other subsidiaries | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income for common stock | 0 | 0 | 0 | ||||||||
Derivatives qualified as cash flow hedges: | |||||||||||
Reclassification adjustment to net income, net of (taxes) benefit | 0 | ||||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits | 0 | 0 | 0 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 0 | 0 | 0 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | 0 | 0 | 0 | ||||||||
Other comprehensive income (loss), net of taxes | 0 | 0 | 0 | ||||||||
Comprehensive income | 0 | 0 | 0 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Consolidating Adjustments | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income for common stock | (43,167) | (45,393) | (38,057) | ||||||||
Derivatives qualified as cash flow hedges: | |||||||||||
Reclassification adjustment to net income, net of (taxes) benefit | 0 | ||||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits | (169) | 11,094 | (10,422) | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | (2,637) | (5,242) | (3,522) | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | 2,992 | (6,093) | 13,997 | ||||||||
Other comprehensive income (loss), net of taxes | 186 | (241) | 53 | ||||||||
Comprehensive income | $ (42,981) | $ (45,634) | $ (38,004) |
Electric utility segment - Co_3
Electric utility segment - Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Utility property, plant and equipment | ||||
Total property, plant and equipment, net | $ 5,109,628 | $ 4,830,118 | ||
Current assets | ||||
Cash and cash equivalents | 196,813 | 169,208 | $ 261,881 | |
Restricted cash | 30,872 | 0 | ||
Other long-term assets | ||||
Operating lease right-of-use-assets | 199,171 | |||
Total assets | 13,745,251 | 13,104,051 | 12,534,160 | |
Capitalization | ||||
Common stock equity | 2,280,260 | 2,162,280 | 2,097,386 | $ 2,066,753 |
Cumulative preferred stock – not subject to mandatory redemption | 0 | 0 | ||
Current portion of operating lease liabilities | 63,707 | |||
Current liabilities | ||||
Interest and dividends payable | 24,941 | 28,254 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 379,324 | 372,518 | ||
Total capitalization and liabilities | 13,745,251 | 13,104,051 | ||
Parent Company | ||||
Utility property, plant and equipment | ||||
Total property, plant and equipment, net | 2,931 | 3,456 | ||
Other long-term assets | ||||
Total assets | 2,821,587 | 2,657,739 | ||
Capitalization | ||||
Common stock equity | 2,280,260 | 2,162,280 | ||
Cumulative preferred stock – not subject to mandatory redemption | 0 | 0 | ||
Deferred credits and other liabilities | ||||
Total capitalization and liabilities | 2,821,587 | 2,657,739 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Utility property, plant and equipment | ||||
Land | 51,816 | 49,667 | ||
Plant and equipment | 7,240,288 | 6,809,671 | ||
Less accumulated depreciation | (2,690,157) | (2,577,342) | ||
Construction in progress | 193,074 | 233,145 | ||
Utility property, plant and equipment, net | 4,795,021 | 4,515,141 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 6,956 | 6,961 | ||
Total property, plant and equipment, net | 4,801,977 | 4,522,102 | ||
Investment in wholly-owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 11,022 | 35,877 | 12,517 | |
Restricted cash | 30,872 | |||
Advances to affiliates | 0 | |||
Customer accounts receivable, net | 152,790 | 177,896 | ||
Accrued unbilled revenues, net | 117,227 | 121,738 | ||
Other accounts receivable, net | 11,568 | 6,215 | ||
Fuel oil stock, at average cost | 91,937 | 79,935 | ||
Materials and supplies, at average cost | 60,702 | 55,204 | ||
Prepayments and other | 116,980 | 32,118 | ||
Regulatory assets | 30,710 | 71,016 | ||
Total current assets | 623,808 | 579,999 | ||
Other long-term assets | ||||
Operating lease right-of-use-assets | 176,809 | |||
Regulatory assets | 684,370 | 762,410 | ||
Other | 101,718 | 102,992 | ||
Total other long-term assets | 962,897 | 865,402 | ||
Total assets | 6,388,682 | 5,967,503 | ||
Capitalization | ||||
Common stock equity | 2,047,352 | 1,957,641 | 1,845,283 | 1,799,787 |
Cumulative preferred stock – not subject to mandatory redemption | 34,293 | 34,293 | ||
Long-term debt, net | 1,401,714 | 1,418,802 | ||
Total capitalization | 3,483,359 | 3,410,736 | ||
Current portion of operating lease liabilities | 63,707 | |||
Current liabilities | ||||
Current portion of long-term debt, net | 95,953 | 0 | ||
Short-term borrowings from non-affiliate | 88,987 | 25,000 | ||
Short-term borrowings-affiliate | 0 | |||
Accounts payable | 187,770 | 171,791 | ||
Interest and dividends payable | 20,728 | 23,215 | ||
Taxes accrued, including revenue taxes | 207,992 | 233,333 | ||
Regulatory liabilities | 30,724 | 17,977 | ||
Other | 67,305 | 60,003 | ||
Total current liabilities | 763,166 | 531,319 | ||
Operating lease liabilities | 113,400 | |||
Deferred credits and other liabilities | ||||
Deferred income taxes | 377,150 | 383,197 | ||
Regulatory liabilities | 941,586 | 932,259 | ||
Unamortized tax credits | 117,868 | 91,522 | ||
Defined benefit pension and other postretirement benefit plans liability | 478,763 | 503,659 | ||
Other | 113,390 | 114,811 | ||
Total deferred credits and other liabilities | 2,142,157 | 2,025,448 | ||
Total capitalization and liabilities | 6,388,682 | 5,967,503 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Parent Company | ||||
Utility property, plant and equipment | ||||
Land | 42,598 | 40,449 | ||
Plant and equipment | 4,765,362 | 4,456,090 | ||
Less accumulated depreciation | (1,591,241) | (1,523,861) | ||
Construction in progress | 165,137 | 193,677 | ||
Utility property, plant and equipment, net | 3,381,856 | 3,166,355 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 5,310 | 5,314 | ||
Total property, plant and equipment, net | 3,387,166 | 3,171,669 | ||
Investment in wholly-owned subsidiaries, at equity | 591,969 | 576,838 | ||
Current assets | ||||
Cash and cash equivalents | 2,239 | 16,732 | ||
Restricted cash | 30,749 | |||
Advances to affiliates | 27,700 | |||
Customer accounts receivable, net | 105,454 | 125,960 | ||
Accrued unbilled revenues, net | 83,148 | 88,060 | ||
Other accounts receivable, net | 18,396 | 21,962 | ||
Fuel oil stock, at average cost | 69,003 | 54,262 | ||
Materials and supplies, at average cost | 34,876 | 30,291 | ||
Prepayments and other | 88,334 | 23,214 | ||
Regulatory assets | 27,689 | 60,093 | ||
Total current assets | 487,588 | 420,574 | ||
Other long-term assets | ||||
Operating lease right-of-use-assets | 174,886 | |||
Regulatory assets | 476,390 | 537,708 | ||
Other | 69,010 | 69,749 | ||
Total other long-term assets | 720,286 | 607,457 | ||
Total assets | 5,187,009 | 4,776,538 | ||
Capitalization | ||||
Common stock equity | 2,047,352 | 1,957,641 | 1,845,283 | 1,799,787 |
Cumulative preferred stock – not subject to mandatory redemption | 22,293 | 22,293 | ||
Long-term debt, net | 1,006,737 | 1,000,137 | ||
Total capitalization | 3,076,382 | 2,980,071 | ||
Current portion of operating lease liabilities | 63,582 | |||
Current liabilities | ||||
Current portion of long-term debt, net | 61,958 | |||
Short-term borrowings from non-affiliate | 88,987 | 25,000 | ||
Short-term borrowings-affiliate | 8,000 | |||
Accounts payable | 139,056 | 126,384 | ||
Interest and dividends payable | 14,759 | 16,203 | ||
Taxes accrued, including revenue taxes | 143,522 | 164,747 | ||
Regulatory liabilities | 13,363 | 7,699 | ||
Other | 51,295 | 46,391 | ||
Total current liabilities | 584,522 | 386,424 | ||
Operating lease liabilities | 111,598 | |||
Deferred credits and other liabilities | ||||
Deferred income taxes | 265,864 | 271,438 | ||
Regulatory liabilities | 664,894 | 657,210 | ||
Unamortized tax credits | 86,852 | 60,271 | ||
Defined benefit pension and other postretirement benefit plans liability | 339,471 | 359,174 | ||
Other | 57,426 | 61,950 | ||
Total deferred credits and other liabilities | 1,526,105 | 1,410,043 | ||
Total capitalization and liabilities | 5,187,009 | 4,776,538 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaii Electric Light | ||||
Utility property, plant and equipment | ||||
Land | 5,606 | 5,606 | ||
Plant and equipment | 1,313,727 | 1,259,553 | ||
Less accumulated depreciation | (574,615) | (547,848) | ||
Construction in progress | 9,993 | 8,781 | ||
Utility property, plant and equipment, net | 754,711 | 726,092 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 114 | 115 | ||
Total property, plant and equipment, net | 754,825 | 726,207 | ||
Investment in wholly-owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 6,885 | 15,623 | ||
Restricted cash | 123 | |||
Advances to affiliates | 8,000 | |||
Customer accounts receivable, net | 24,520 | 26,483 | ||
Accrued unbilled revenues, net | 17,071 | 17,051 | ||
Other accounts receivable, net | 1,907 | 3,131 | ||
Fuel oil stock, at average cost | 8,901 | 11,027 | ||
Materials and supplies, at average cost | 8,313 | 7,155 | ||
Prepayments and other | 3,725 | 5,212 | ||
Regulatory assets | 1,641 | 3,177 | ||
Total current assets | 81,086 | 88,859 | ||
Other long-term assets | ||||
Operating lease right-of-use-assets | 1,537 | |||
Regulatory assets | 109,163 | 120,658 | ||
Other | 15,493 | 15,944 | ||
Total other long-term assets | 126,193 | 136,602 | ||
Total assets | 962,104 | 951,668 | ||
Capitalization | ||||
Common stock equity | 298,998 | 295,874 | 286,647 | 291,291 |
Cumulative preferred stock – not subject to mandatory redemption | 7,000 | 7,000 | ||
Long-term debt, net | 206,416 | 217,749 | ||
Total capitalization | 512,414 | 520,623 | ||
Current portion of operating lease liabilities | 94 | |||
Current liabilities | ||||
Current portion of long-term debt, net | 13,995 | |||
Short-term borrowings from non-affiliate | 0 | 0 | ||
Short-term borrowings-affiliate | 0 | |||
Accounts payable | 25,629 | 20,045 | ||
Interest and dividends payable | 3,115 | 4,203 | ||
Taxes accrued, including revenue taxes | 32,541 | 34,128 | ||
Regulatory liabilities | 9,454 | 4,872 | ||
Other | 11,362 | 15,077 | ||
Total current liabilities | 96,190 | 78,325 | ||
Operating lease liabilities | 1,442 | |||
Deferred credits and other liabilities | ||||
Deferred income taxes | 53,534 | 54,936 | ||
Regulatory liabilities | 178,474 | 176,101 | ||
Unamortized tax credits | 16,196 | 16,217 | ||
Defined benefit pension and other postretirement benefit plans liability | 69,928 | 73,147 | ||
Other | 33,926 | 32,319 | ||
Total deferred credits and other liabilities | 353,500 | 352,720 | ||
Total capitalization and liabilities | 962,104 | 951,668 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Maui Electric | ||||
Utility property, plant and equipment | ||||
Land | 3,612 | 3,612 | ||
Plant and equipment | 1,161,199 | 1,094,028 | ||
Less accumulated depreciation | (524,301) | (505,633) | ||
Construction in progress | 17,944 | 30,687 | ||
Utility property, plant and equipment, net | 658,454 | 622,694 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 1,532 | 1,532 | ||
Total property, plant and equipment, net | 659,986 | 624,226 | ||
Investment in wholly-owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 1,797 | 3,421 | ||
Restricted cash | 0 | |||
Advances to affiliates | 0 | |||
Customer accounts receivable, net | 22,816 | 25,453 | ||
Accrued unbilled revenues, net | 17,008 | 16,627 | ||
Other accounts receivable, net | 1,960 | 3,033 | ||
Fuel oil stock, at average cost | 14,033 | 14,646 | ||
Materials and supplies, at average cost | 17,513 | 17,758 | ||
Prepayments and other | 24,921 | 3,692 | ||
Regulatory assets | 1,380 | 7,746 | ||
Total current assets | 101,428 | 92,376 | ||
Other long-term assets | ||||
Operating lease right-of-use-assets | 386 | |||
Regulatory assets | 98,817 | 104,044 | ||
Other | 17,215 | 17,299 | ||
Total other long-term assets | 116,418 | 121,343 | ||
Total assets | 877,832 | 837,945 | ||
Capitalization | ||||
Common stock equity | 292,870 | 280,863 | 270,265 | 259,554 |
Cumulative preferred stock – not subject to mandatory redemption | 5,000 | 5,000 | ||
Long-term debt, net | 188,561 | 200,916 | ||
Total capitalization | 486,431 | 486,779 | ||
Current portion of operating lease liabilities | 31 | |||
Current liabilities | ||||
Current portion of long-term debt, net | 20,000 | |||
Short-term borrowings from non-affiliate | 0 | 0 | ||
Short-term borrowings-affiliate | 27,700 | |||
Accounts payable | 23,085 | 25,362 | ||
Interest and dividends payable | 2,900 | 2,841 | ||
Taxes accrued, including revenue taxes | 31,929 | 34,458 | ||
Regulatory liabilities | 7,907 | 5,406 | ||
Other | 15,297 | 20,414 | ||
Total current liabilities | 128,849 | 88,481 | ||
Operating lease liabilities | 360 | |||
Deferred credits and other liabilities | ||||
Deferred income taxes | 57,752 | 56,823 | ||
Regulatory liabilities | 98,218 | 98,948 | ||
Unamortized tax credits | 14,820 | 15,034 | ||
Defined benefit pension and other postretirement benefit plans liability | 69,364 | 71,338 | ||
Other | 22,038 | 20,542 | ||
Total deferred credits and other liabilities | 262,552 | 262,685 | ||
Total capitalization and liabilities | 877,832 | 837,945 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | 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 | ||
Restricted cash | 0 | |||
Advances to affiliates | 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 | ||||
Operating lease right-of-use-assets | 0 | |||
Regulatory assets | 0 | 0 | ||
Other | 0 | 0 | ||
Total other long-term assets | 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 portion of operating lease liabilities | 0 | |||
Current liabilities | ||||
Current portion of long-term debt, net | 0 | |||
Short-term borrowings from non-affiliate | 0 | 0 | ||
Short-term borrowings-affiliate | 0 | |||
Accounts payable | 0 | 0 | ||
Interest and dividends payable | 0 | 0 | ||
Taxes accrued, including revenue taxes | 0 | 0 | ||
Regulatory liabilities | 0 | 0 | ||
Other | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Operating lease liabilities | 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 | ||
Total capitalization and liabilities | 101 | 101 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | 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 | (591,969) | (576,838) | ||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | |||
Advances to affiliates | (35,700) | |||
Customer accounts receivable, net | 0 | 0 | ||
Accrued unbilled revenues, net | 0 | 0 | ||
Other accounts receivable, net | (10,695) | (21,911) | ||
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 | (46,395) | (21,911) | ||
Other long-term assets | ||||
Operating lease right-of-use-assets | 0 | |||
Regulatory assets | 0 | 0 | ||
Other | 0 | 0 | ||
Total other long-term assets | 0 | 0 | ||
Total assets | (638,364) | (598,749) | ||
Capitalization | ||||
Common stock equity | (591,969) | (576,838) | $ (557,013) | $ (550,946) |
Cumulative preferred stock – not subject to mandatory redemption | 0 | 0 | ||
Long-term debt, net | 0 | 0 | ||
Total capitalization | (591,969) | (576,838) | ||
Current portion of operating lease liabilities | 0 | |||
Current liabilities | ||||
Current portion of long-term debt, net | 0 | |||
Short-term borrowings from non-affiliate | 0 | 0 | ||
Short-term borrowings-affiliate | (35,700) | |||
Accounts payable | 0 | 0 | ||
Interest and dividends payable | (46) | (32) | ||
Taxes accrued, including revenue taxes | 0 | 0 | ||
Regulatory liabilities | 0 | 0 | ||
Other | (10,649) | (21,879) | ||
Total current liabilities | (46,395) | (21,911) | ||
Operating lease liabilities | 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 | ||
Total capitalization and liabilities | $ (638,364) | $ (598,749) |
Electric utility segment - Co_4
Electric utility segment - Consolidating Statements of Changes in Common Stock Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | $ 2,162,280 | $ 2,097,386 | $ 2,162,280 | $ 2,097,386 | $ 2,066,753 | ||||||
Net income for common stock | $ 66,263 | $ 63,419 | $ 42,512 | 45,688 | $ 49,573 | $ 65,900 | $ 46,054 | 40,247 | 217,882 | 201,774 | 165,297 |
Other comprehensive income (loss), net of tax benefits | 30,571 | (8,669) | (1,372) | ||||||||
Common stock dividends | (139,463) | (134,987) | (134,873) | ||||||||
Ending Balance | 2,280,260 | 2,162,280 | 2,280,260 | 2,162,280 | 2,097,386 | ||||||
Parent Company | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 2,162,280 | 2,162,280 | |||||||||
Ending Balance | 2,280,260 | 2,162,280 | 2,280,260 | 2,162,280 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 1,957,641 | 1,845,283 | 1,957,641 | 1,845,283 | 1,799,787 | ||||||
Net income for common stock | 45,361 | $ 46,779 | $ 32,574 | 32,126 | 35,297 | $ 49,712 | $ 31,169 | 27,475 | 156,840 | 143,653 | 119,951 |
Other comprehensive income (loss), net of tax benefits | (1,378) | 1,318 | (688) | ||||||||
Issuance of common stock, net of expenses | 35,501 | 70,692 | 14,000 | ||||||||
Common stock dividends | (101,252) | (103,305) | (87,767) | ||||||||
Ending Balance | 2,047,352 | 1,957,641 | 2,047,352 | 1,957,641 | 1,845,283 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Parent Company | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 1,957,641 | 1,845,283 | 1,957,641 | 1,845,283 | 1,799,787 | ||||||
Net income for common stock | 156,840 | 143,653 | 119,951 | ||||||||
Other comprehensive income (loss), net of tax benefits | (1,378) | 1,318 | (688) | ||||||||
Issuance of common stock, net of expenses | 35,501 | 70,692 | 14,000 | ||||||||
Common stock dividends | (101,252) | (103,305) | (87,767) | ||||||||
Ending Balance | 2,047,352 | 1,957,641 | 2,047,352 | 1,957,641 | 1,845,283 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaii Electric Light | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 295,874 | 286,647 | 295,874 | 286,647 | 291,291 | ||||||
Net income for common stock | 20,817 | 24,481 | 20,146 | ||||||||
Other comprehensive income (loss), net of tax benefits | (12) | 34 | 2 | ||||||||
Issuance of common stock, net of expenses | (1) | 1 | 4 | ||||||||
Common stock dividends | (17,680) | (15,289) | (24,796) | ||||||||
Ending Balance | 298,998 | 295,874 | 298,998 | 295,874 | 286,647 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Maui Electric | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 280,863 | 270,265 | 280,863 | 270,265 | 259,554 | ||||||
Net income for common stock | 22,350 | 20,912 | 17,911 | ||||||||
Other comprehensive income (loss), net of tax benefits | (174) | 207 | (55) | ||||||||
Issuance of common stock, net of expenses | 4,899 | 1,498 | 4,801 | ||||||||
Common stock dividends | (15,068) | (12,019) | (11,946) | ||||||||
Ending Balance | 292,870 | 280,863 | 292,870 | 280,863 | 270,265 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Other subsidiaries | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 101 | 101 | 101 | 101 | 101 | ||||||
Net income for common stock | 0 | 0 | 0 | ||||||||
Other comprehensive income (loss), net of tax benefits | 0 | 0 | 0 | ||||||||
Issuance of common stock, net of expenses | 0 | 0 | 0 | ||||||||
Common stock dividends | 0 | 0 | 0 | ||||||||
Ending Balance | 101 | 101 | 101 | 101 | 101 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Consolidating Adjustments | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | $ (576,838) | $ (557,013) | (576,838) | (557,013) | (550,946) | ||||||
Net income for common stock | (43,167) | (45,393) | (38,057) | ||||||||
Other comprehensive income (loss), net of tax benefits | 186 | (241) | 53 | ||||||||
Issuance of common stock, net of expenses | (4,898) | (1,499) | (4,805) | ||||||||
Common stock dividends | 32,748 | 27,308 | 36,742 | ||||||||
Ending Balance | $ (591,969) | $ (576,838) | $ (591,969) | $ (576,838) | $ (557,013) |
Electric utility segment - Co_5
Electric utility segment - Consolidating Statement of Cash Flows (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||||||||||
Net income (loss) | $ 66,736,000 | $ 63,890,000 | $ 42,985,000 | $ 46,161,000 | $ 50,046,000 | $ 66,371,000 | $ 46,527,000 | $ 40,720,000 | $ 219,772,000 | $ 203,664,000 | $ 167,187,000 |
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation of property, plant and equipment | 229,858,000 | 214,036,000 | 200,658,000 | ||||||||
Other amortization | 48,255,000 | 41,593,000 | 21,340,000 | ||||||||
Deferred income taxes | (15,085,000) | (9,368,000) | 37,835,000 | ||||||||
Allowance for equity funds used during construction | (11,987,000) | (10,877,000) | (12,483,000) | ||||||||
Other | 10,822,000 | (4,219,000) | (3,324,000) | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease (increase) in fuel oil stock | (11,493,000) | 7,054,000 | (20,794,000) | ||||||||
Decrease (increase) in regulatory assets | 71,262,000 | 9,252,000 | (17,256,000) | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (27,538,000) | 29,429,000 | 20,685,000 | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (4,482,000) | 20,871,000 | 882,000 | ||||||||
Net cash provided by operating activities | 512,470,000 | 499,312,000 | 420,441,000 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (457,520,000) | (537,369,000) | (495,187,000) | ||||||||
Other, net | 13,292,000 | 14,534,000 | 7,487,000 | ||||||||
Net cash used in investing activities | (541,709,000) | (792,059,000) | (815,299,000) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (139,463,000) | (134,987,000) | (134,873,000) | ||||||||
Proceeds from issuance of long-term debt | 289,349,000 | 250,000,000 | 532,325,000 | ||||||||
Repayment of long-term debt and funds transferred for repayment of long-term debt | (287,285,000) | (53,887,000) | (465,000,000) | ||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 86,718,000 | (18,999,000) | 67,992,000 | ||||||||
Proceeds from issuance of short-term debt | 75,000,000 | 25,000,000 | 125,000,000 | ||||||||
Net increase in other bank borrowings with original maturities of three months or less | 5,070,000 | 71,556,000 | 61,776,000 | ||||||||
Repayment of short-term debt | (50,000,000) | (50,000,000) | (75,000,000) | ||||||||
Other | (1,836,000) | (1,603,000) | (6,349,000) | ||||||||
Net cash used in financing activities | 87,716,000 | 200,074,000 | 378,287,000 | ||||||||
Net decrease in cash and equivalents | 58,477,000 | (92,673,000) | (16,571,000) | ||||||||
Cash, cash equivalents and restricted cash, January 1 | 169,208,000 | 261,881,000 | 169,208,000 | 261,881,000 | 278,452,000 | ||||||
Cash, cash equivalents and restricted cash, December 31 | 227,685,000 | 169,208,000 | 227,685,000 | 169,208,000 | 261,881,000 | ||||||
Less: Restricted cash | (30,872,000) | 0 | (30,872,000) | 0 | 0 | ||||||
Cash and cash equivalents | 196,813,000 | 169,208,000 | 196,813,000 | 169,208,000 | 261,881,000 | ||||||
Parent Company | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 217,882,000 | 201,774,000 | 165,297,000 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation of property, plant and equipment | 570,000 | 597,000 | 548,000 | ||||||||
Changes in assets and liabilities | |||||||||||
Net cash provided by operating activities | 131,120,000 | 135,470,000 | 99,600,000 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (47,000) | (143,000) | (317,000) | ||||||||
Other, net | (1,001,000) | 140,000 | (177,000) | ||||||||
Net cash used in investing activities | (41,170,000) | (92,569,000) | (26,456,000) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (139,463,000) | (134,987,000) | (134,873,000) | ||||||||
Proceeds from issuance of long-term debt | 0 | 150,000,000 | 150,000,000 | ||||||||
Repayment of long-term debt and funds transferred for repayment of long-term debt | 0 | 0 | (200,000,000) | ||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 47,731,000 | (14,000,000) | 62,993,000 | ||||||||
Proceeds from issuance of short-term debt | 0 | 0 | 125,000,000 | ||||||||
Repayment of short-term debt | 0 | (50,000,000) | (75,000,000) | ||||||||
Other | (10,000) | (848,000) | (756,000) | ||||||||
Net cash used in financing activities | (92,739,000) | (50,861,000) | (76,366,000) | ||||||||
Net decrease in cash and equivalents | (2,789,000) | (7,960,000) | (3,222,000) | ||||||||
Cash, cash equivalents and restricted cash, January 1 | 3,742,000 | 11,702,000 | 3,742,000 | 11,702,000 | 14,924,000 | ||||||
Cash, cash equivalents and restricted cash, December 31 | 953,000 | 3,742,000 | 953,000 | 3,742,000 | 11,702,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 45,860,000 | $ 47,277,000 | $ 33,073,000 | 32,625,000 | 35,796,000 | $ 50,210,000 | $ 31,668,000 | 27,974,000 | 158,835,000 | 145,648,000 | 121,946,000 |
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | (37,000) | (100,000) | (100,000) | ||||||||
Common stock dividends received from subsidiaries | 35,000 | 100,000 | 125,000 | ||||||||
Depreciation of property, plant and equipment | 215,731,000 | 203,626,000 | 192,784,000 | ||||||||
Other amortization | 29,631,000 | 26,602,000 | 8,498,000 | ||||||||
Deferred income taxes | (16,284,000) | (7,982,000) | 38,037,000 | ||||||||
Income tax credits, net | 27,259,000 | (99,000) | (52,000) | ||||||||
State refundable credit | (8,369,000) | (6,239,000) | (2,251,000) | ||||||||
Allowance for equity funds used during construction | (11,987,000) | (10,877,000) | (12,483,000) | ||||||||
Other | 200,000 | 4,768,000 | 1,237,000 | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease (increase) in accounts receivable | 20,956,000 | (50,917,000) | 2,914,000 | ||||||||
Decrease (increase) in accrued unbilled revenues | 4,511,000 | (14,684,000) | (15,361,000) | ||||||||
Decrease (increase) in fuel oil stock | (12,002,000) | 6,938,000 | (20,443,000) | ||||||||
Decrease (increase) in materials and supplies | (5,498,000) | (807,000) | (718,000) | ||||||||
Decrease (increase) in regulatory assets | 71,262,000 | 9,252,000 | (17,256,000) | ||||||||
Increase in regulatory liabilities | 1,953,000 | 37,358,000 | 3,602,000 | ||||||||
Increase (decrease) in accounts payable | (2,051,000) | 24,358,000 | 25,734,000 | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (28,523,000) | 25,036,000 | 29,862,000 | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (4,448,000) | 18,746,000 | 604,000 | ||||||||
Changes in other assets and liabilities | (17,218,000) | (17,114,000) | (21,493,000) | ||||||||
Net cash provided by operating activities | 423,956,000 | 393,613,000 | 335,186,000 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (419,898,000) | (415,264,000) | (376,865,000) | ||||||||
Advances from (to) affiliates | 0 | 0 | 0 | ||||||||
Other, net | 11,374,000 | 10,082,000 | 4,578,000 | ||||||||
Net cash used in investing activities | (408,524,000) | (405,182,000) | (372,287,000) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (101,252,000) | (103,305,000) | (87,767,000) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,995,000) | (1,995,000) | (1,995,000) | ||||||||
Net proceeds from issuance of common stock | 35,500,000 | 70,700,000 | 14,000,000 | ||||||||
Proceeds from issuance of long-term debt | 280,000,000 | 100,000,000 | 315,000,000 | ||||||||
Repayment of long-term debt and funds transferred for repayment of long-term debt | (283,546,000) | (50,000,000) | (265,000,000) | ||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 38,987,000 | (4,999,000) | 4,999,000 | ||||||||
Proceeds from issuance of short-term debt | 25,000,000 | ||||||||||
Net increase in other bank borrowings with original maturities of three months or less | 75,000,000 | ||||||||||
Repayment of short-term debt | (50,000,000) | 0 | 0 | ||||||||
Other | (2,109,000) | (472,000) | (3,905,000) | ||||||||
Net cash used in financing activities | (9,415,000) | 34,929,000 | (24,668,000) | ||||||||
Net decrease in cash and equivalents | 6,017,000 | 23,360,000 | (61,769,000) | ||||||||
Cash, cash equivalents and restricted cash, January 1 | 35,877,000 | 12,517,000 | 35,877,000 | 12,517,000 | 74,286,000 | ||||||
Cash, cash equivalents and restricted cash, December 31 | 41,894,000 | 35,877,000 | 41,894,000 | 35,877,000 | 12,517,000 | ||||||
Less: Restricted cash | (30,872,000) | 0 | (30,872,000) | 0 | 0 | ||||||
Cash and cash equivalents | 11,022,000 | 35,877,000 | 11,022,000 | 35,877,000 | 12,517,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Parent Company | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 157,920,000 | 144,733,000 | 121,031,000 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | (43,204,000) | (45,493,000) | (38,157,000) | ||||||||
Common stock dividends received from subsidiaries | 32,783,000 | 27,408,000 | 36,867,000 | ||||||||
Depreciation of property, plant and equipment | 143,470,000 | 137,410,000 | 130,889,000 | ||||||||
Other amortization | 23,351,000 | 20,956,000 | 2,398,000 | ||||||||
Deferred income taxes | (13,547,000) | (9,806,000) | 26,342,000 | ||||||||
Income tax credits, net | 27,277,000 | (83,000) | (35,000) | ||||||||
State refundable credit | (6,245,000) | (4,941,000) | (1,382,000) | ||||||||
Allowance for equity funds used during construction | (9,955,000) | (9,208,000) | (10,896,000) | ||||||||
Other | 298,000 | 3,991,000 | 263,000 | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease (increase) in accounts receivable | 25,376,000 | (51,656,000) | 1,817,000 | ||||||||
Decrease (increase) in accrued unbilled revenues | 4,912,000 | (10,884,000) | (11,355,000) | ||||||||
Decrease (increase) in fuel oil stock | (14,741,000) | 10,710,000 | (17,733,000) | ||||||||
Decrease (increase) in materials and supplies | (4,585,000) | (1,966,000) | 1,603,000 | ||||||||
Decrease (increase) in regulatory assets | 55,494,000 | 12,192,000 | (8,395,000) | ||||||||
Increase in regulatory liabilities | 102,000 | 26,540,000 | 2,552,000 | ||||||||
Increase (decrease) in accounts payable | 4,687,000 | 14,748,000 | 23,519,000 | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (24,900,000) | 24,438,000 | 16,716,000 | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (3,033,000) | 17,178,000 | 709,000 | ||||||||
Changes in other assets and liabilities | (15,341,000) | (8,056,000) | (18,765,000) | ||||||||
Net cash provided by operating activities | 340,119,000 | 298,211,000 | 257,988,000 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (311,538,000) | (305,703,000) | (281,752,000) | ||||||||
Advances from (to) affiliates | (27,700,000) | 0 | 0 | ||||||||
Other, net | 5,241,000 | 3,226,000 | (1,711,000) | ||||||||
Net cash used in investing activities | (333,997,000) | (302,477,000) | (283,463,000) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (101,252,000) | (103,305,000) | (87,767,000) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080,000) | (1,080,000) | (1,080,000) | ||||||||
Net proceeds from issuance of common stock | 35,500,000 | 70,700,000 | 14,000,000 | ||||||||
Proceeds from issuance of long-term debt | 190,000,000 | 75,000,000 | 202,000,000 | ||||||||
Repayment of long-term debt and funds transferred for repayment of long-term debt | (183,546,000) | (30,000,000) | (162,000,000) | ||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 46,987,000 | (16,999,000) | 3,499,000 | ||||||||
Proceeds from issuance of short-term debt | 25,000,000 | ||||||||||
Net increase in other bank borrowings with original maturities of three months or less | 75,000,000 | ||||||||||
Repayment of short-term debt | (50,000,000) | ||||||||||
Other | (1,475,000) | (377,000) | (2,506,000) | ||||||||
Net cash used in financing activities | 10,134,000 | 18,939,000 | (33,854,000) | ||||||||
Net decrease in cash and equivalents | 16,256,000 | 14,673,000 | (59,329,000) | ||||||||
Cash, cash equivalents and restricted cash, January 1 | 16,732,000 | 2,059,000 | 16,732,000 | 2,059,000 | 61,388,000 | ||||||
Cash, cash equivalents and restricted cash, December 31 | 32,988,000 | 16,732,000 | 32,988,000 | 16,732,000 | 2,059,000 | ||||||
Less: Restricted cash | (30,749,000) | (30,749,000) | |||||||||
Cash and cash equivalents | 2,239,000 | 16,732,000 | 2,239,000 | 16,732,000 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaii Electric Light | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 21,351,000 | 25,015,000 | 20,680,000 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | 0 | 0 | 0 | ||||||||
Common stock dividends received from subsidiaries | 0 | 0 | 0 | ||||||||
Depreciation of property, plant and equipment | 41,812,000 | 40,235,000 | 38,741,000 | ||||||||
Other amortization | 4,810,000 | 5,069,000 | 3,225,000 | ||||||||
Deferred income taxes | (2,383,000) | (341,000) | 3,954,000 | ||||||||
Income tax credits, net | (13,000) | (14,000) | (16,000) | ||||||||
State refundable credit | (559,000) | (547,000) | (528,000) | ||||||||
Allowance for equity funds used during construction | (816,000) | (478,000) | (554,000) | ||||||||
Other | (48,000) | 348,000 | 974,000 | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease (increase) in accounts receivable | 3,326,000 | (4,867,000) | (359,000) | ||||||||
Decrease (increase) in accrued unbilled revenues | (20,000) | (1,111,000) | (2,376,000) | ||||||||
Decrease (increase) in fuel oil stock | 2,126,000 | (2,329,000) | (469,000) | ||||||||
Decrease (increase) in materials and supplies | (1,158,000) | 886,000 | (661,000) | ||||||||
Decrease (increase) in regulatory assets | 9,218,000 | 71,000 | (4,007,000) | ||||||||
Increase in regulatory liabilities | (1,558,000) | 5,380,000 | 315,000 | ||||||||
Increase (decrease) in accounts payable | (3,160,000) | 6,104,000 | (3,547,000) | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (893,000) | (2,118,000) | 7,961,000 | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (762,000) | (760,000) | 52,000 | ||||||||
Changes in other assets and liabilities | (6,152,000) | 2,806,000 | (748,000) | ||||||||
Net cash provided by operating activities | 65,121,000 | 73,349,000 | 62,637,000 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (49,811,000) | (51,054,000) | (47,784,000) | ||||||||
Advances from (to) affiliates | (8,000,000) | 0 | 3,500,000 | ||||||||
Other, net | 297,000 | 1,182,000 | 649,000 | ||||||||
Net cash used in investing activities | (57,514,000) | (49,872,000) | (43,635,000) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (17,680,000) | (15,289,000) | (24,796,000) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (534,000) | (534,000) | (534,000) | ||||||||
Net proceeds from issuance of common stock | 0 | 0 | |||||||||
Proceeds from issuance of long-term debt | 72,500,000 | 15,000,000 | 28,000,000 | ||||||||
Repayment of long-term debt and funds transferred for repayment of long-term debt | (70,000,000) | (11,000,000) | (28,000,000) | ||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | 0 | 0 | ||||||||
Proceeds from issuance of short-term debt | 0 | ||||||||||
Net increase in other bank borrowings with original maturities of three months or less | 0 | ||||||||||
Repayment of short-term debt | 0 | ||||||||||
Other | (508,000) | (56,000) | (396,000) | ||||||||
Net cash used in financing activities | (16,222,000) | (11,879,000) | (25,726,000) | ||||||||
Net decrease in cash and equivalents | (8,615,000) | 11,598,000 | (6,724,000) | ||||||||
Cash, cash equivalents and restricted cash, January 1 | 15,623,000 | 4,025,000 | 15,623,000 | 4,025,000 | 10,749,000 | ||||||
Cash, cash equivalents and restricted cash, December 31 | 7,008,000 | 15,623,000 | 7,008,000 | 15,623,000 | 4,025,000 | ||||||
Less: Restricted cash | (123,000) | (123,000) | |||||||||
Cash and cash equivalents | 6,885,000 | 15,623,000 | 6,885,000 | 15,623,000 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Maui Electric | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 22,731,000 | 21,293,000 | 18,292,000 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | 0 | 0 | 0 | ||||||||
Common stock dividends received from subsidiaries | 0 | 0 | 0 | ||||||||
Depreciation of property, plant and equipment | 30,449,000 | 25,981,000 | 23,154,000 | ||||||||
Other amortization | 1,470,000 | 577,000 | 2,875,000 | ||||||||
Deferred income taxes | (354,000) | 2,165,000 | 8,004,000 | ||||||||
Income tax credits, net | (5,000) | (2,000) | (1,000) | ||||||||
State refundable credit | (1,565,000) | (751,000) | (341,000) | ||||||||
Allowance for equity funds used during construction | (1,216,000) | (1,191,000) | (1,033,000) | ||||||||
Other | (50,000) | 429,000 | 0 | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease (increase) in accounts receivable | 3,469,000 | (8,614,000) | 45,000 | ||||||||
Decrease (increase) in accrued unbilled revenues | (381,000) | (2,689,000) | (1,630,000) | ||||||||
Decrease (increase) in fuel oil stock | 613,000 | (1,443,000) | (2,241,000) | ||||||||
Decrease (increase) in materials and supplies | 245,000 | 273,000 | (1,660,000) | ||||||||
Decrease (increase) in regulatory assets | 6,550,000 | (3,011,000) | (4,854,000) | ||||||||
Increase in regulatory liabilities | 3,409,000 | 5,438,000 | 735,000 | ||||||||
Increase (decrease) in accounts payable | (3,578,000) | 3,506,000 | 5,762,000 | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (3,097,000) | 3,047,000 | 5,362,000 | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (653,000) | 2,328,000 | (157,000) | ||||||||
Changes in other assets and liabilities | (6,940,000) | 2,356,000 | (569,000) | ||||||||
Net cash provided by operating activities | 51,097,000 | 49,692,000 | 51,743,000 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (58,549,000) | (58,507,000) | (47,329,000) | ||||||||
Advances from (to) affiliates | 0 | 12,000,000 | (2,000,000) | ||||||||
Other, net | 1,303,000 | 3,843,000 | 400,000 | ||||||||
Net cash used in investing activities | (57,246,000) | (42,664,000) | (48,929,000) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (15,068,000) | (12,019,000) | (11,946,000) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (381,000) | (381,000) | (381,000) | ||||||||
Net proceeds from issuance of common stock | 4,900,000 | 1,500,000 | 4,800,000 | ||||||||
Proceeds from issuance of long-term debt | 17,500,000 | 10,000,000 | 85,000,000 | ||||||||
Repayment of long-term debt and funds transferred for repayment of long-term debt | (30,000,000) | (9,000,000) | (75,000,000) | ||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 27,700,000 | 0 | 0 | ||||||||
Proceeds from issuance of short-term debt | 0 | ||||||||||
Net increase in other bank borrowings with original maturities of three months or less | 0 | ||||||||||
Repayment of short-term debt | 0 | ||||||||||
Other | (126,000) | (39,000) | (1,003,000) | ||||||||
Net cash used in financing activities | 4,525,000 | (9,939,000) | 1,470,000 | ||||||||
Net decrease in cash and equivalents | (1,624,000) | (2,911,000) | 4,284,000 | ||||||||
Cash, cash equivalents and restricted cash, January 1 | 3,421,000 | 6,332,000 | 3,421,000 | 6,332,000 | 2,048,000 | ||||||
Cash, cash equivalents and restricted cash, December 31 | 1,797,000 | 3,421,000 | 1,797,000 | 3,421,000 | 6,332,000 | ||||||
Less: Restricted cash | 0 | 0 | |||||||||
Cash and cash equivalents | 1,797,000 | 3,421,000 | 1,797,000 | 3,421,000 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Other subsidiaries | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 0 | 0 | 0 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | 0 | 0 | 0 | ||||||||
Common stock dividends received from subsidiaries | 0 | 0 | 0 | ||||||||
Depreciation of property, plant and equipment | 0 | 0 | 0 | ||||||||
Other amortization | 0 | 0 | 0 | ||||||||
Deferred income taxes | 0 | 0 | 0 | ||||||||
Income tax credits, net | 0 | 0 | 0 | ||||||||
State refundable credit | 0 | 0 | 0 | ||||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease (increase) in accounts receivable | 0 | 0 | 0 | ||||||||
Decrease (increase) in accrued unbilled revenues | 0 | 0 | 0 | ||||||||
Decrease (increase) in fuel oil stock | 0 | 0 | 0 | ||||||||
Decrease (increase) in materials and supplies | 0 | 0 | 0 | ||||||||
Decrease (increase) in regulatory assets | 0 | 0 | 0 | ||||||||
Increase in regulatory liabilities | 0 | 0 | |||||||||
Increase (decrease) in accounts payable | 0 | 0 | 0 | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 0 | 0 | 0 | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 0 | 0 | 0 | ||||||||
Changes in other assets and liabilities | 0 | 0 | 0 | ||||||||
Net cash provided by operating activities | 0 | 0 | 0 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Advances from (to) affiliates | 0 | 0 | 0 | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Net cash used in investing activities | 0 | 0 | 0 | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | 0 | 0 | 0 | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | 0 | ||||||||
Net proceeds from issuance of common stock | 0 | 0 | 0 | ||||||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | ||||||||
Repayment of long-term debt and funds transferred for repayment of long-term debt | 0 | 0 | 0 | ||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | 0 | 0 | ||||||||
Proceeds from issuance of short-term debt | 0 | ||||||||||
Net increase in other bank borrowings with original maturities of three months or less | 0 | ||||||||||
Repayment of short-term debt | 0 | ||||||||||
Other | 0 | 0 | 0 | ||||||||
Net cash used in financing activities | 0 | 0 | 0 | ||||||||
Net decrease in cash and equivalents | 0 | 0 | 0 | ||||||||
Cash, cash equivalents and restricted cash, January 1 | 101,000 | 101,000 | 101,000 | 101,000 | 101,000 | ||||||
Cash, cash equivalents and restricted cash, December 31 | 101,000 | 101,000 | 101,000 | 101,000 | 101,000 | ||||||
Less: Restricted cash | 0 | 0 | |||||||||
Cash and cash equivalents | 101,000 | 101,000 | 101,000 | 101,000 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Consolidating Adjustments | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | (43,167,000) | (45,393,000) | (38,057,000) | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | 43,167,000 | 45,393,000 | 38,057,000 | ||||||||
Common stock dividends received from subsidiaries | (32,748,000) | (27,308,000) | (36,742,000) | ||||||||
Depreciation of property, plant and equipment | 0 | 0 | 0 | ||||||||
Other amortization | 0 | 0 | 0 | ||||||||
Deferred income taxes | 0 | 0 | (263,000) | ||||||||
Income tax credits, net | 0 | 0 | 0 | ||||||||
State refundable credit | 0 | 0 | 0 | ||||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease (increase) in accounts receivable | (11,215,000) | 14,220,000 | 1,411,000 | ||||||||
Decrease (increase) in accrued unbilled revenues | 0 | 0 | 0 | ||||||||
Decrease (increase) in fuel oil stock | 0 | 0 | 0 | ||||||||
Decrease (increase) in materials and supplies | 0 | 0 | 0 | ||||||||
Decrease (increase) in regulatory assets | 0 | 0 | 0 | ||||||||
Increase in regulatory liabilities | 0 | 0 | |||||||||
Increase (decrease) in accounts payable | 0 | 0 | 0 | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 367,000 | (331,000) | (177,000) | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 0 | 0 | 0 | ||||||||
Changes in other assets and liabilities | 11,215,000 | (14,220,000) | (1,411,000) | ||||||||
Net cash provided by operating activities | (32,381,000) | (27,639,000) | (37,182,000) | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Advances from (to) affiliates | 35,700,000 | (12,000,000) | (1,500,000) | ||||||||
Other, net | 4,533,000 | 1,831,000 | 5,240,000 | ||||||||
Net cash used in investing activities | 40,233,000 | (10,169,000) | 3,740,000 | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | 32,748,000 | 27,308,000 | 36,742,000 | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | 0 | ||||||||
Net proceeds from issuance of common stock | (4,900,000) | (1,500,000) | (4,800,000) | ||||||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | ||||||||
Repayment of long-term debt and funds transferred for repayment of long-term debt | 0 | 0 | 0 | ||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (35,700,000) | 12,000,000 | 1,500,000 | ||||||||
Proceeds from issuance of short-term debt | 0 | ||||||||||
Net increase in other bank borrowings with original maturities of three months or less | 0 | ||||||||||
Repayment of short-term debt | 0 | ||||||||||
Other | 0 | 0 | 0 | ||||||||
Net cash used in financing activities | (7,852,000) | 37,808,000 | 33,442,000 | ||||||||
Net decrease in cash and equivalents | 0 | 0 | 0 | ||||||||
Cash, cash equivalents and restricted cash, January 1 | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Cash, cash equivalents and restricted cash, December 31 | 0 | 0 | 0 | 0 | $ 0 | ||||||
Less: Restricted cash | 0 | 0 | |||||||||
Cash and cash equivalents | $ 0 | $ 0 | $ 0 | $ 0 |
Bank segment (HEI only) - State
Bank segment (HEI only) - Statements of Income Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest expense | |||
Interest on deposit liabilities | $ 16,830 | $ 13,991 | $ 9,660 |
Total interest expense | 109,339 | 104,216 | 91,128 |
Noninterest income | |||
Revenues | 2,622,025 | 2,614,831 | |
Noninterest expense | |||
Income before income taxes | 271,409 | 254,461 | 276,580 |
Income taxes | 51,637 | 50,797 | 109,393 |
Current period other comprehensive income (loss) and reclassifications, net of taxes | 30,571 | (8,669) | (1,372) |
Comprehensive income | 248,453 | 193,105 | 163,925 |
American Savings Bank (ASB) | |||
Interest and dividend income | |||
Interest and fees on loans | 233,632 | 220,463 | 207,255 |
Interest and dividends on investment securities | 32,922 | 37,762 | 28,823 |
Total interest and dividend income | 266,554 | 258,225 | 236,078 |
Interest expense | |||
Interest on deposit liabilities | 16,830 | 13,991 | 9,660 |
Interest on other borrowings | 1,610 | 1,548 | 2,496 |
Total interest expense | 18,440 | 15,539 | 12,156 |
Net interest income | 248,114 | 242,686 | 223,922 |
Provision for loan losses | 23,480 | 14,745 | 10,901 |
Net interest income after provision for loan losses | 224,634 | 227,941 | 213,021 |
Noninterest income | |||
Gain on sale of properties | 10,762 | 0 | 0 |
Gains on sale of investment securities, net | 653 | 0 | 0 |
Total noninterest income | 72,778 | 56,050 | 61,562 |
Noninterest expense | |||
Compensation and employee benefits | 103,009 | 98,387 | 94,931 |
Occupancy | 21,272 | 17,073 | 16,699 |
Data processing | 15,306 | 14,268 | 13,280 |
Services | 10,239 | 10,847 | 10,994 |
Equipment | 8,760 | 7,186 | 7,232 |
Office supplies, printing and postage | 5,512 | 6,134 | 6,182 |
Marketing | 4,490 | 3,567 | 3,501 |
FDIC insurance | 1,204 | 2,713 | 2,904 |
Other expense | 15,586 | 17,238 | 20,144 |
Total noninterest expense | 185,378 | 177,413 | 175,867 |
Income before income taxes | 112,034 | 106,578 | 98,716 |
Income taxes | 23,061 | 24,069 | 31,719 |
Net income attributable to Hawaiian Electric | 88,973 | 82,509 | 66,997 |
Current period other comprehensive income (loss) and reclassifications, net of taxes | 29,406 | (7,119) | (3,139) |
Comprehensive income | 118,379 | 75,390 | 63,858 |
American Savings Bank (ASB) | Fees from other financial services | |||
Noninterest income | |||
Revenues | 19,275 | 18,937 | 22,796 |
American Savings Bank (ASB) | Fee income on deposit liabilities | |||
Noninterest income | |||
Revenues | 20,877 | 21,311 | 22,204 |
American Savings Bank (ASB) | Fee income on other financial products | |||
Noninterest income | |||
Revenues | 6,507 | 7,052 | 7,205 |
American Savings Bank (ASB) | Bank-owned life insurance | |||
Noninterest income | |||
Revenues | 7,687 | 5,057 | 5,539 |
American Savings Bank (ASB) | Mortgage banking income | |||
Noninterest income | |||
Revenues | 4,943 | 1,493 | 2,201 |
American Savings Bank (ASB) | Other income, net | |||
Noninterest income | |||
Revenues | $ 2,074 | $ 2,200 | $ 1,617 |
Bank segment (HEI only) - Recon
Bank segment (HEI only) - Reconciliation of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Revenues | $ 725,966 | $ 771,535 | $ 715,485 | $ 661,615 | $ 761,650 | $ 768,048 | $ 685,277 | $ 645,874 | $ 2,874,601 | $ 2,860,849 | $ 2,555,625 |
Total interest expense | 109,339 | 104,216 | 91,128 | ||||||||
Less: Retirement defined benefits credit (expense)—other than service costs | (2,806) | (5,962) | (7,942) | ||||||||
Total expenses | 2,525,927 | 2,527,493 | 2,209,392 | ||||||||
Operating income | $ 100,795 | $ 97,308 | $ 72,634 | $ 77,937 | $ 84,604 | $ 98,064 | $ 78,799 | $ 71,889 | 348,674 | 333,356 | 346,233 |
Add back: Retirement defined benefits expense (credit)—other than service costs | 2,806 | 5,962 | 7,942 | ||||||||
Income before income taxes | 271,409 | 254,461 | 276,580 | ||||||||
American Savings Bank (ASB) | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Interest and dividend income | 266,554 | 258,225 | 236,078 | ||||||||
Noninterest income | 72,778 | 56,050 | 61,562 | ||||||||
Less: Gain on sale of real estate | (10,762) | 0 | 0 | ||||||||
Revenues | 328,570 | 314,275 | 297,640 | ||||||||
Total interest expense | 18,440 | 15,539 | 12,156 | ||||||||
Provision for loan losses | 23,480 | 14,745 | 10,901 | ||||||||
Noninterest expense | 185,378 | 177,413 | 175,867 | ||||||||
Less: Retirement defined benefits credit (expense)—other than service costs | 472 | (1,657) | (820) | ||||||||
Add: Gain on sale of real estate | (10,762) | 0 | 0 | ||||||||
Total expenses | 217,008 | 206,040 | 198,104 | ||||||||
Operating income | 111,562 | 108,235 | 99,536 | ||||||||
Add back: Retirement defined benefits expense (credit)—other than service costs | (472) | 1,657 | 820 | ||||||||
Income before income taxes | $ 112,034 | $ 106,578 | $ 98,716 |
Bank segment (HEI only) - Balan
Bank segment (HEI only) - Balance Sheets Data (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)building | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Assets | ||||
Cash and due from banks | $ 196,813 | $ 169,208 | ||
Investment securities | ||||
Available-for-sale, at fair value | 1,232,826 | 1,388,533 | ||
Held-to-maturity, at amortized cost (fair value of $143,467 and $142,057 at December 31, 2019 and 2018, respectively) | 139,451 | 141,875 | ||
Stock in Federal Home Loan Bank, at cost | 8,434 | 9,958 | ||
Allowance for loan losses | (53,355) | (52,119) | ||
Total loans, net | 5,067,821 | 4,790,902 | ||
Loans held for sale, at lower of cost or fair value | 12,286 | 1,805 | ||
Other | 649,885 | 530,364 | ||
Goodwill | 82,190 | 82,190 | ||
Total assets | 13,745,251 | 13,104,051 | $ 12,534,160 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Other | 583,545 | 580,788 | ||
Total liabilities | 11,430,698 | 10,907,478 | ||
Commitments and contingencies | ||||
Retained earnings | 622,042 | 543,623 | ||
Net unrealized gains (losses) on securities | 2,481 | (24,423) | ||
Accumulated other comprehensive loss, net of tax benefits | (20,039) | (50,610) | ||
Total shareholders’ equity | 2,280,260 | 2,162,280 | $ 2,097,386 | $ 2,066,753 |
Total capitalization and liabilities | 13,745,251 | 13,104,051 | ||
Other assets | ||||
Premises and equipment, net | 5,109,628 | 4,830,118 | ||
Total other assets | 649,885 | 530,364 | ||
Other liabilities | ||||
Total other liabilities | 583,545 | 580,788 | ||
Held-to-maturity investment securities | $ 143,467 | 142,057 | ||
Number of buildings sold | building | 2 | |||
American Savings Bank (ASB) | ||||
Assets | ||||
Cash and due from banks | $ 129,770 | 122,059 | ||
Interest-bearing deposits | 48,628 | 4,225 | ||
Investment securities | ||||
Available-for-sale, at fair value | 1,232,826 | 1,388,533 | ||
Held-to-maturity, at amortized cost (fair value of $143,467 and $142,057 at December 31, 2019 and 2018, respectively) | 139,451 | 141,875 | ||
Stock in Federal Home Loan Bank, at cost | 8,434 | 9,958 | ||
Loans held for investment | 5,121,176 | 4,843,021 | ||
Allowance for loan losses | (53,355) | (52,119) | ||
Total loans, net | 5,067,821 | 4,790,902 | ||
Loans held for sale, at lower of cost or fair value | 12,286 | 1,805 | ||
Other | 511,611 | 486,347 | ||
Goodwill | 82,190 | 82,190 | ||
Total assets | 7,233,017 | 7,027,894 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Deposit liabilities–noninterest-bearing | 1,909,682 | 1,800,727 | ||
Deposit liabilities–interest-bearing | 4,362,220 | 4,358,125 | ||
Other borrowings | 115,110 | 110,040 | ||
Other | 146,954 | 124,613 | ||
Total liabilities | 6,533,966 | 6,393,505 | ||
Commitments and contingencies | ||||
Common stock | 1 | 1 | ||
Additional paid in capital | 349,453 | 347,170 | ||
Retained earnings | 358,259 | 325,286 | ||
Net unrealized gains (losses) on securities | 2,481 | (24,423) | ||
Retirement benefit plans | (11,143) | (13,645) | ||
Accumulated other comprehensive loss, net of tax benefits | (8,662) | (38,068) | ||
Total shareholders’ equity | 699,051 | 634,389 | ||
Total capitalization and liabilities | 7,233,017 | 7,027,894 | ||
Other assets | ||||
Bank-owned life insurance | 157,465 | 151,172 | ||
Premises and equipment, net | 204,449 | 214,415 | ||
Accrued interest receivable | 19,365 | 20,140 | ||
Mortgage servicing rights | 9,101 | 8,062 | ||
Low-income housing investments | 66,302 | 67,626 | ||
Real estate acquired in settlement of loans, net | 0 | 406 | ||
Other | 54,929 | 24,526 | ||
Total other assets | 511,611 | 486,347 | ||
Other liabilities | ||||
Accrued expenses | 45,822 | 54,084 | ||
Federal and state income taxes payable | 14,996 | 2,012 | ||
Cashier’s checks | 23,647 | 26,906 | ||
Advance payments by borrowers | 10,486 | 10,183 | ||
Other | 52,003 | 31,428 | ||
Total other liabilities | 146,954 | 124,613 | ||
Held-to-maturity investment securities | $ 143,467 | $ 142,057 |
Bank segment (HEI only) - Avail
Bank segment (HEI only) - Available For Sale Investment Securities (Details) $ in Thousands | Dec. 31, 2019USD ($)issue | Dec. 31, 2018USD ($)issue |
Available-for-sale | ||
Total amortized cost | $ 1,229,438 | $ 1,421,897 |
Gross unrealized gains | 8,015 | 954 |
Gross unrealized losses | (4,627) | (34,318) |
Available-for-sale investment securities | $ 1,232,826 | $ 1,388,533 |
Number of issues, less than 12 months | issue | 21 | 33 |
Fair value, less than 12 months | $ 156,181 | $ 178,068 |
Gross unrealized losses, less than 12 months | $ (830) | $ (1,907) |
Number of issues, more than 12 months | issue | 78 | 164 |
Fair value, 12 months or longer | $ 345,657 | $ 1,066,295 |
Gross unrealized losses, 12 months or longer | (3,797) | (32,411) |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt Securities, Held-to-maturity | 139,451 | 141,875 |
Gross unrealized gains | 4,087 | 1,446 |
Gross unrealized losses | (71) | (1,264) |
Held-to-maturity investment securities | $ 143,467 | $ 142,057 |
Number of issues, less than 12 months | issue | 1 | 3 |
Fair value, less than 12 months | $ 12,986 | $ 29,814 |
Gross unrealized losses, less than 12 months | $ (71) | $ (400) |
Number of issues, more than 12 months | issue | 0 | 2 |
Fair value, 12 months or longer | $ 0 | $ 31,505 |
Gross unrealized losses, 12 months or longer | 0 | (864) |
U.S. Treasury and federal agency obligations | ||
Available-for-sale | ||
Total amortized cost | 117,255 | 156,694 |
Gross unrealized gains | 652 | 62 |
Gross unrealized losses | (120) | (2,407) |
Available-for-sale investment securities | $ 117,787 | $ 154,349 |
Number of issues, less than 12 months | issue | 2 | 5 |
Fair value, less than 12 months | $ 4,110 | $ 25,882 |
Gross unrealized losses, less than 12 months | $ (11) | $ (208) |
Number of issues, more than 12 months | issue | 3 | 19 |
Fair value, 12 months or longer | $ 27,637 | $ 118,405 |
Gross unrealized losses, 12 months or longer | (109) | (2,199) |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | ||
Available-for-sale | ||
Total amortized cost | 1,024,892 | 1,192,169 |
Gross unrealized gains | 6,000 | 789 |
Gross unrealized losses | (4,507) | (31,542) |
Available-for-sale investment securities | $ 1,026,385 | $ 1,161,416 |
Number of issues, less than 12 months | issue | 19 | 22 |
Fair value, less than 12 months | $ 152,071 | $ 129,011 |
Gross unrealized losses, less than 12 months | $ (819) | $ (1,330) |
Number of issues, more than 12 months | issue | 75 | 145 |
Fair value, 12 months or longer | $ 318,020 | $ 947,890 |
Gross unrealized losses, 12 months or longer | (3,688) | (30,212) |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt Securities, Held-to-maturity | 139,451 | 141,875 |
Gross unrealized gains | 4,087 | 1,446 |
Gross unrealized losses | (71) | (1,264) |
Held-to-maturity investment securities | $ 143,467 | $ 142,057 |
Number of issues, less than 12 months | issue | 1 | 3 |
Fair value, less than 12 months | $ 12,986 | $ 29,814 |
Gross unrealized losses, less than 12 months | $ (71) | $ (400) |
Number of issues, more than 12 months | issue | 0 | 2 |
Fair value, 12 months or longer | $ 0 | $ 31,505 |
Gross unrealized losses, 12 months or longer | 0 | (864) |
Corporate bonds | ||
Available-for-sale | ||
Total amortized cost | 58,694 | 49,398 |
Gross unrealized gains | 1,363 | 103 |
Gross unrealized losses | 0 | (369) |
Available-for-sale investment securities | $ 60,057 | $ 49,132 |
Number of issues, less than 12 months | issue | 0 | 6 |
Fair value, less than 12 months | $ 0 | $ 23,175 |
Gross unrealized losses, less than 12 months | $ 0 | $ (369) |
Number of issues, more than 12 months | issue | 0 | 0 |
Fair value, 12 months or longer | $ 0 | $ 0 |
Gross unrealized losses, 12 months or longer | 0 | 0 |
Mortgage revenue bonds | ||
Available-for-sale | ||
Total amortized cost | 28,597 | 23,636 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Available-for-sale investment securities | $ 28,597 | $ 23,636 |
Number of issues, less than 12 months | issue | 0 | 0 |
Fair value, less than 12 months | $ 0 | $ 0 |
Gross unrealized losses, less than 12 months | $ 0 | $ 0 |
Number of issues, more than 12 months | issue | 0 | 0 |
Fair value, 12 months or longer | $ 0 | $ 0 |
Gross unrealized losses, 12 months or longer | 0 | 0 |
American Savings Bank (ASB) | ||
Available-for-sale | ||
Available-for-sale investment securities | 1,232,826 | 1,388,533 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt Securities, Held-to-maturity | 139,451 | 141,875 |
Held-to-maturity investment securities | $ 143,467 | $ 142,057 |
Bank segment (HEI only) - Inves
Bank segment (HEI only) - Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amortized Cost | |||
Due in one year or less | $ 60,200 | ||
Due after one year through five years | 75,694 | ||
Due after five years through ten years | 53,225 | ||
Due after ten years | 15,427 | ||
Amortized cost, available-for-sale securities with a single maturity date | 204,546 | ||
Mortgage-related securities-FNMA, FHLMC and GNMA - amortized cost | 1,024,892 | ||
Total amortized cost | 1,229,438 | $ 1,421,897 | |
Mortgage-related securities-FNMA, FHLMC and GNMA, amortized cost basis | 139,451 | ||
Debt Securities, Held-to-maturity | 139,451 | 141,875 | |
Fair value | |||
Due in one year or less | 60,249 | ||
Due after one year through five years | 77,225 | ||
Due after five years through ten years | 53,540 | ||
Due after ten years | 15,427 | ||
Available-for-sale securities with a single maturity date | 206,441 | ||
Mortgage-related securities-FNMA, FHLMC and GNMA - fair value | 1,026,385 | ||
Total fair value | 1,232,826 | 1,388,533 | |
Mortgage-related securities - FNMA, FHLMC and GNMA, Fair Value | 143,467 | ||
Held-to-maturity securities, Fair Value | 143,467 | 142,057 | |
Gains (losses) from sales of available-for-sale investments | |||
Proceeds | 19,810 | 0 | $ 0 |
Gross gains | 700 | 0 | 0 |
Gross losses | 0 | 0 | 0 |
Interest income from taxable and non-taxable investment securities | |||
Taxable | 31,847 | 37,153 | 28,398 |
Non-taxable | 1,074 | 609 | 425 |
Total | 32,921 | 37,762 | $ 28,823 |
Available-for-sale securities pledged at carrying value | 546,000 | 546,000 | |
Available-for-sale securities, pledged at carrying value as collateral for securities sold under agreements to repurchase | 130,000 | 92,000 | |
Stock in federal home loan bank at cost | 8,434 | 9,958 | |
FHLB Des Moines | |||
Interest income from taxable and non-taxable investment securities | |||
Stock in federal home loan bank at cost | $ 8,400 | $ 10,000 |
Bank segment (HEI only) - Loans
Bank segment (HEI only) - Loans Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans receivable | ||
Loans Receivable | $ 5,120,664 | $ 4,843,634 |
Less: Deferred fees and discounts | 512 | (613) |
Allowance for loan losses | (53,355) | (52,119) |
Total loans, net | 5,067,821 | 4,790,902 |
Real estate loans | ||
Loans receivable | ||
Loans Receivable | 4,192,069 | 3,989,741 |
Residential 1-4 family | ||
Loans receivable | ||
Loans Receivable | 2,178,135 | 2,143,397 |
Commercial real estate | ||
Loans receivable | ||
Loans Receivable | 824,830 | 748,398 |
Home equity line of credit | ||
Loans receivable | ||
Loans Receivable | 1,092,125 | 978,237 |
Residential land | ||
Loans receivable | ||
Loans Receivable | 14,704 | 13,138 |
Commercial construction | ||
Loans receivable | ||
Loans Receivable | 70,605 | 92,264 |
Residential construction | ||
Loans receivable | ||
Loans Receivable | 11,670 | 14,307 |
Commercial | ||
Loans receivable | ||
Loans Receivable | 670,674 | 587,891 |
Consumer | ||
Loans receivable | ||
Loans Receivable | $ 257,921 | $ 266,002 |
Bank segment (HEI only) - Loa_2
Bank segment (HEI only) - Loans Receivable, Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Bank Segment Disclosure [Abstract] | |||
Percentage of benchmark loan to appraisal ratio in excess of which mortgage insurance is required | 80.00% | ||
Minimum benchmark percentage of loan to non-owner occupied residential property purchase | 75.00% | ||
Real estate loans for investors | $ 1,300 | $ 1,200 | $ 1,200 |
Loans pledged as collateral to secure advances from the FHLB of Des Moines | 2,900 | 2,700 | |
Loans to directors, executive directors, affiliates and any related interest of such individuals | 24.1 | 24 | |
Loan balances, related interests of individuals who are directors | $ 18 | $ 18.3 |
Bank segment (HEI only) - Allow
Bank segment (HEI only) - Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | $ 52,119 | $ 53,637 | $ 55,533 |
Charge-offs | (28,662) | (20,517) | (16,813) |
Recoveries | 6,418 | 4,254 | 4,016 |
Provision | 23,480 | 14,745 | 10,901 |
Valuation allowance, balance at the end of the period | 53,355 | 52,119 | 53,637 |
Ending balance: individually evaluated for impairment | 2,691 | 2,222 | 2,730 |
Ending balance: collectively evaluated for impairment | 50,664 | 49,897 | 50,907 |
Financing Receivables: | |||
Total financing receivables | 5,120,664 | 4,843,634 | 4,671,577 |
Ending balance: individually evaluated for impairment | 40,737 | 39,697 | 33,393 |
Ending balance: collectively evaluated for impairment | 5,079,927 | 4,803,937 | 4,638,184 |
Residential 1-4 family | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 1,976 | 2,902 | 2,873 |
Charge-offs | (26) | (128) | (826) |
Recoveries | 854 | 74 | 157 |
Provision | (424) | (872) | 698 |
Valuation allowance, balance at the end of the period | 2,380 | 1,976 | 2,902 |
Ending balance: individually evaluated for impairment | 898 | 876 | 1,248 |
Ending balance: collectively evaluated for impairment | 1,482 | 1,100 | 1,654 |
Financing Receivables: | |||
Total financing receivables | 2,178,135 | 2,143,397 | 2,118,047 |
Ending balance: individually evaluated for impairment | 15,600 | 16,494 | 18,284 |
Ending balance: collectively evaluated for impairment | 2,162,535 | 2,126,903 | 2,099,763 |
Commercial real estate | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 14,505 | 15,796 | 16,004 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | 548 | (1,291) | (208) |
Valuation allowance, balance at the end of the period | 15,053 | 14,505 | 15,796 |
Ending balance: individually evaluated for impairment | 2 | 7 | 65 |
Ending balance: collectively evaluated for impairment | 15,051 | 14,498 | 15,731 |
Financing Receivables: | |||
Total financing receivables | 824,830 | 748,398 | 733,106 |
Ending balance: individually evaluated for impairment | 1,048 | 915 | 1,016 |
Ending balance: collectively evaluated for impairment | 823,782 | 747,483 | 732,090 |
Home equity line of credit | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 6,371 | 7,522 | 5,039 |
Charge-offs | (144) | (353) | (14) |
Recoveries | 17 | 257 | 308 |
Provision | 678 | (1,055) | 2,189 |
Valuation allowance, balance at the end of the period | 6,922 | 6,371 | 7,522 |
Ending balance: individually evaluated for impairment | 322 | 701 | 647 |
Ending balance: collectively evaluated for impairment | 6,600 | 5,670 | 6,875 |
Financing Receivables: | |||
Total financing receivables | 1,092,125 | 978,237 | 913,052 |
Ending balance: individually evaluated for impairment | 12,073 | 14,800 | 8,188 |
Ending balance: collectively evaluated for impairment | 1,080,052 | 963,437 | 904,864 |
Residential land | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 479 | 896 | 1,738 |
Charge-offs | (4) | (18) | (210) |
Recoveries | 229 | 179 | 482 |
Provision | (255) | (578) | (1,114) |
Valuation allowance, balance at the end of the period | 449 | 479 | 896 |
Ending balance: individually evaluated for impairment | 0 | 6 | 47 |
Ending balance: collectively evaluated for impairment | 449 | 473 | 849 |
Financing Receivables: | |||
Total financing receivables | 14,704 | 13,138 | 15,797 |
Ending balance: individually evaluated for impairment | 3,091 | 2,059 | 1,265 |
Ending balance: collectively evaluated for impairment | 11,613 | 11,079 | 14,532 |
Commercial construction | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 2,790 | 4,671 | 6,449 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | (693) | (1,881) | (1,778) |
Valuation allowance, balance at the end of the period | 2,097 | 2,790 | 4,671 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 2,097 | 2,790 | 4,671 |
Financing Receivables: | |||
Total financing receivables | 70,605 | 92,264 | 108,273 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 70,605 | 92,264 | 108,273 |
Residential construction | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 4 | 12 | 12 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | (1) | (8) | 0 |
Valuation allowance, balance at the end of the period | 3 | 4 | 12 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 3 | 4 | 12 |
Financing Receivables: | |||
Total financing receivables | 11,670 | 14,307 | 14,910 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 11,670 | 14,307 | 14,910 |
Commercial | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 9,225 | 10,851 | 16,618 |
Charge-offs | (6,811) | (2,722) | (4,006) |
Recoveries | 2,351 | 2,136 | 1,852 |
Provision | 5,480 | (1,040) | (3,613) |
Valuation allowance, balance at the end of the period | 10,245 | 9,225 | 10,851 |
Ending balance: individually evaluated for impairment | 1,015 | 628 | 694 |
Ending balance: collectively evaluated for impairment | 9,230 | 8,597 | 10,157 |
Financing Receivables: | |||
Total financing receivables | 670,674 | 587,891 | 544,828 |
Ending balance: individually evaluated for impairment | 8,418 | 5,340 | 4,574 |
Ending balance: collectively evaluated for impairment | 662,256 | 582,551 | 540,254 |
Consumer | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 16,769 | 10,987 | 6,800 |
Charge-offs | (21,677) | (17,296) | (11,757) |
Recoveries | 2,967 | 1,608 | 1,217 |
Provision | 18,147 | 21,470 | 14,727 |
Valuation allowance, balance at the end of the period | 16,206 | 16,769 | 10,987 |
Ending balance: individually evaluated for impairment | 454 | 4 | 29 |
Ending balance: collectively evaluated for impairment | 15,752 | 16,765 | 10,958 |
Financing Receivables: | |||
Total financing receivables | 257,921 | 266,002 | 223,564 |
Ending balance: individually evaluated for impairment | 507 | 89 | 66 |
Ending balance: collectively evaluated for impairment | $ 257,414 | $ 265,913 | $ 223,498 |
Bank segment (HEI only) - Credi
Bank segment (HEI only) - Credit Risk Profile by Internally Assigned Grade for Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | $ 5,120,664 | $ 4,843,634 | $ 4,671,577 |
Loans, Excluding Consumer Loans | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 1,566,109 | 1,428,553 | |
Loans, Excluding Consumer Loans | Pass | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 1,446,720 | 1,295,902 | |
Loans, Excluding Consumer Loans | Special mention | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 34,372 | 44,469 | |
Loans, Excluding Consumer Loans | Substandard | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 85,017 | 88,182 | |
Loans, Excluding Consumer Loans | Doubtful | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 0 | 0 | |
Loans, Excluding Consumer Loans | Loss | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 0 | 0 | |
Commercial real estate | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 824,830 | 748,398 | 733,106 |
Commercial real estate | Pass | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 756,747 | 658,288 | |
Commercial real estate | Special mention | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 4,451 | 32,871 | |
Commercial real estate | Substandard | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 63,632 | 57,239 | |
Commercial real estate | Doubtful | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 0 | 0 | |
Commercial real estate | Loss | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 0 | 0 | |
Commercial construction | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 70,605 | 92,264 | 108,273 |
Commercial construction | Pass | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 68,316 | 89,974 | |
Commercial construction | Special mention | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 0 | 0 | |
Commercial construction | Substandard | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 2,289 | 2,290 | |
Commercial construction | Doubtful | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 0 | 0 | |
Commercial construction | Loss | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 0 | 0 | |
Commercial | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 670,674 | 587,891 | $ 544,828 |
Commercial | Pass | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 621,657 | 547,640 | |
Commercial | Special mention | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 29,921 | 11,598 | |
Commercial | Substandard | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 19,096 | 28,653 | |
Commercial | Doubtful | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 0 | 0 | |
Commercial | Loss | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | $ 0 | $ 0 |
Bank segment (HEI only) - Cre_2
Bank segment (HEI only) - Credit Risk Profile Based on Payment Activity for Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Credit risk profile based on payment activity for loans | |||
Total past due | $ 19,751 | $ 25,969 | |
Current | 5,100,913 | 4,817,665 | |
Total financing receivables | 5,120,664 | 4,843,634 | $ 4,671,577 |
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 | 4,686 | 8,869 | |
Current | 2,173,449 | 2,134,528 | |
Total financing receivables | 2,178,135 | 2,143,397 | 2,118,047 |
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 | 0 | |
Current | 824,830 | 748,398 | |
Total financing receivables | 824,830 | 748,398 | 733,106 |
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 | 2,930 | 4,540 | |
Current | 1,089,195 | 973,697 | |
Total financing receivables | 1,092,125 | 978,237 | 913,052 |
Recorded Investment greater than 90 days and accruing | 0 | 0 | |
Residential land | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 25 | 328 | |
Current | 14,679 | 12,810 | |
Total financing receivables | 14,704 | 13,138 | 15,797 |
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 | 70,605 | 92,264 | |
Total financing receivables | 70,605 | 92,264 | 108,273 |
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 | 11,670 | 14,307 | |
Total financing receivables | 11,670 | 14,307 | 14,910 |
Recorded Investment greater than 90 days and accruing | 0 | 0 | |
Commercial | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 1,560 | 1,144 | |
Current | 669,114 | 586,747 | |
Total financing receivables | 670,674 | 587,891 | 544,828 |
Recorded Investment greater than 90 days and accruing | 0 | 0 | |
Consumer | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 10,550 | 11,088 | |
Current | 247,371 | 254,914 | |
Total financing receivables | 257,921 | 266,002 | $ 223,564 |
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 | 8,864 | 10,440 | |
30-59 days past due | Residential 1-4 family | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 2,588 | 3,757 | |
30-59 days past due | Commercial real estate | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 0 | 0 | |
30-59 days past due | Home equity line of credit | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 813 | 1,139 | |
30-59 days past due | Residential land | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 0 | 9 | |
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 | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 1,077 | 315 | |
30-59 days past due | Consumer | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 4,386 | 5,220 | |
60-89 days past due | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 3,858 | 6,901 | |
60-89 days past due | Residential 1-4 family | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 290 | 2,773 | |
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 | 0 | 681 | |
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 | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 311 | 281 | |
60-89 days past due | Consumer | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 3,257 | 3,166 | |
Greater than 90 days | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 7,029 | 8,628 | |
Greater than 90 days | Residential 1-4 family | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 1,808 | 2,339 | |
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 | 2,117 | 2,720 | |
Greater than 90 days | Residential land | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 25 | 319 | |
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 | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 172 | 548 | |
Greater than 90 days | Consumer | |||
Credit risk profile based on payment activity for loans | |||
Total past due | $ 2,907 | $ 2,702 |
Bank segment (HEI only) - Cre_3
Bank segment (HEI only) - Credit Risk Profile Based on Aging Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | $ 29,736 | $ 27,295 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 26,413 | 25,917 |
Residential 1-4 family | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 11,395 | 12,037 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 9,869 | 10,194 |
Commercial real estate | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 195 | 0 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 853 | 915 |
Home equity line of credit | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 6,638 | 6,348 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 10,376 | 11,597 |
Residential land | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 448 | 436 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 2,644 | 1,622 |
Commercial construction | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 0 | 0 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured 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 |
Troubled debt restructured loans not included above | 0 | 0 |
Commercial | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 5,947 | 4,278 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 2,614 | 1,527 |
Consumer | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 5,113 | 4,196 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | $ 57 | $ 62 |
Bank segment (HEI only) - Carry
Bank segment (HEI only) - Carrying Amount of Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Recorded investment: | |||
With no related allowance recorded | $ 14,037 | $ 16,349 | |
With an allowance recorded | 26,700 | 23,348 | |
Recorded investment | 40,737 | 39,697 | |
Unpaid principal balance: | |||
With no related allowance recorded | 15,123 | 18,372 | |
With an allowance recorded | 26,762 | 23,580 | |
Unpaid principal balance | 41,885 | 41,952 | |
Related Allowance | 2,691 | 2,222 | |
Average recorded investment, with no related allowance recorded | 17,422 | 15,630 | $ 15,378 |
Average recorded investment, with an allowance recorded | 27,972 | 22,360 | 21,160 |
Average recorded investment | 45,394 | 37,990 | 36,538 |
Interest income recognized, with no related allowance recorded | 1,400 | 588 | 599 |
Interest income recognized, with an allowance recorded | 1,119 | 974 | 1,621 |
Interest income recognized | 2,519 | 1,562 | 2,220 |
Residential 1-4 family | |||
Recorded investment: | |||
With no related allowance recorded | 6,817 | 7,822 | |
With an allowance recorded | 8,783 | 8,672 | |
Recorded investment | 15,600 | 16,494 | |
Unpaid principal balance: | |||
With no related allowance recorded | 7,207 | 8,333 | |
With an allowance recorded | 8,835 | 8,875 | |
Unpaid principal balance | 16,042 | 17,208 | |
Related Allowance | 898 | 876 | |
Average recorded investment, with no related allowance recorded | 8,169 | 8,595 | 9,440 |
Average recorded investment, with an allowance recorded | 8,390 | 8,878 | 9,818 |
Average recorded investment | 16,559 | 17,473 | 19,258 |
Interest income recognized, with no related allowance recorded | 907 | 445 | 316 |
Interest income recognized, with an allowance recorded | 359 | 363 | 493 |
Interest income recognized | 1,266 | 808 | 809 |
Commercial real estate | |||
Recorded investment: | |||
With no related allowance recorded | 195 | 0 | |
With an allowance recorded | 853 | 915 | |
Recorded investment | 1,048 | 915 | |
Unpaid principal balance: | |||
With no related allowance recorded | 200 | 0 | |
With an allowance recorded | 853 | 915 | |
Unpaid principal balance | 1,053 | 915 | |
Related Allowance | 2 | 7 | |
Average recorded investment, with no related allowance recorded | 16 | 0 | 91 |
Average recorded investment, with an allowance recorded | 886 | 982 | 1,241 |
Average recorded investment | 902 | 982 | 1,332 |
Interest income recognized, with no related allowance recorded | 0 | 0 | 11 |
Interest income recognized, with an allowance recorded | 37 | 42 | 54 |
Interest income recognized | 37 | 42 | 65 |
Home equity line of credit | |||
Recorded investment: | |||
With no related allowance recorded | 1,984 | 2,743 | |
With an allowance recorded | 10,089 | 12,057 | |
Recorded investment | 12,073 | 14,800 | |
Unpaid principal balance: | |||
With no related allowance recorded | 2,135 | 3,004 | |
With an allowance recorded | 10,099 | 12,086 | |
Unpaid principal balance | 12,234 | 15,090 | |
Related Allowance | 322 | 701 | |
Average recorded investment, with no related allowance recorded | 2,020 | 2,206 | 1,976 |
Average recorded investment, with an allowance recorded | 11,319 | 10,617 | 5,045 |
Average recorded investment | 13,339 | 12,823 | 7,021 |
Interest income recognized, with no related allowance recorded | 84 | 75 | 101 |
Interest income recognized, with an allowance recorded | 567 | 440 | 251 |
Interest income recognized | 651 | 515 | 352 |
Residential land | |||
Recorded investment: | |||
With no related allowance recorded | 3,091 | 2,030 | |
With an allowance recorded | 0 | 29 | |
Recorded investment | 3,091 | 2,059 | |
Unpaid principal balance: | |||
With no related allowance recorded | 3,294 | 2,228 | |
With an allowance recorded | 0 | 29 | |
Unpaid principal balance | 3,294 | 2,257 | |
Related Allowance | 0 | 6 | |
Average recorded investment, with no related allowance recorded | 2,662 | 1,532 | 1,094 |
Average recorded investment, with an allowance recorded | 27 | 37 | 1,308 |
Average recorded investment | 2,689 | 1,569 | 2,402 |
Interest income recognized, with no related allowance recorded | 129 | 40 | 117 |
Interest income recognized, with an allowance recorded | 0 | 3 | 97 |
Interest income recognized | 129 | 43 | 214 |
Commercial construction | |||
Recorded investment: | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Recorded investment | 0 | 0 | |
Unpaid principal balance: | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Unpaid principal balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average recorded investment, with no related allowance recorded | 0 | 0 | 0 |
Average recorded investment, with an allowance recorded | 0 | 0 | 0 |
Average recorded investment | 0 | 0 | 0 |
Interest income recognized, with no related allowance recorded | 0 | 0 | 0 |
Interest income recognized, with an allowance recorded | 0 | 0 | 0 |
Interest income recognized | 0 | 0 | 0 |
Residential construction | |||
Recorded investment: | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Recorded investment | 0 | 0 | |
Unpaid principal balance: | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Unpaid principal balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average recorded investment, with no related allowance recorded | 0 | 0 | 0 |
Average recorded investment, with an allowance recorded | 0 | 0 | 0 |
Average recorded investment | 0 | 0 | 0 |
Interest income recognized, with no related allowance recorded | 0 | 0 | 0 |
Interest income recognized, with an allowance recorded | 0 | 0 | 0 |
Interest income recognized | 0 | 0 | 0 |
Commercial | |||
Recorded investment: | |||
With no related allowance recorded | 1,948 | 3,722 | |
With an allowance recorded | 6,470 | 1,618 | |
Recorded investment | 8,418 | 5,340 | |
Unpaid principal balance: | |||
With no related allowance recorded | 2,285 | 4,775 | |
With an allowance recorded | 6,470 | 1,618 | |
Unpaid principal balance | 8,755 | 6,393 | |
Related Allowance | 1,015 | 628 | |
Average recorded investment, with no related allowance recorded | 4,534 | 3,275 | 2,776 |
Average recorded investment, with an allowance recorded | 6,990 | 1,789 | 3,691 |
Average recorded investment | 11,524 | 5,064 | 6,467 |
Interest income recognized, with no related allowance recorded | 276 | 28 | 54 |
Interest income recognized, with an allowance recorded | 132 | 122 | 723 |
Interest income recognized | 408 | 150 | 777 |
Consumer | |||
Recorded investment: | |||
With no related allowance recorded | 2 | 32 | |
With an allowance recorded | 505 | 57 | |
Recorded investment | 507 | 89 | |
Unpaid principal balance: | |||
With no related allowance recorded | 2 | 32 | |
With an allowance recorded | 505 | 57 | |
Unpaid principal balance | 507 | 89 | |
Related Allowance | 454 | 4 | |
Average recorded investment, with no related allowance recorded | 21 | 22 | 1 |
Average recorded investment, with an allowance recorded | 360 | 57 | 57 |
Average recorded investment | 381 | 79 | 58 |
Interest income recognized, with no related allowance recorded | 4 | 0 | 0 |
Interest income recognized, with an allowance recorded | 24 | 4 | 3 |
Interest income recognized | $ 28 | $ 4 | $ 3 |
Bank segment (HEI only) - TDR N
Bank segment (HEI only) - TDR Narrative (Details) - Residential land | 12 Months Ended |
Dec. 31, 2019 | |
Troubled debt restructurings | |
Period of interest-only monthly payment term loan | 3 years |
Maximum | |
Troubled debt restructurings | |
Extension of maturity date | 5 years |
Bank segment (HEI only) - Loan
Bank segment (HEI only) - Loan Modifications (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($)contract | |
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 25 | 70 | 57 |
Pre-modification outstanding recorded investment | $ 8,821,000 | $ 10,728,000 | $ 3,935,000 |
Post-modification outstanding recorded investment | $ 680,000 | $ 815,000 | $ 889,000 |
Troubled debt restructuring that subsequently defaulted, number of contracts | contract | 0 | 2 | 1 |
Troubled debt restructuring that subsequently defaulted, recorded investment | $ 0 | $ 327,000 | $ 222,000 |
Commitments to borrowers whose loan terms are impaired or modified under troubled debt restructuring | 0 | 0 | |
Consumer mortgage loans collateralized by residential real estate property in foreclosure process | $ 3,500,000 | $ 4,200,000 | |
Residential 1-4 family | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 11 | 3 | 3 |
Pre-modification outstanding recorded investment | $ 1,770,000 | $ 566,000 | $ 469,000 |
Post-modification outstanding recorded investment | $ 190,000 | $ 26,000 | $ 65,000 |
Troubled debt restructuring that subsequently defaulted, number of contracts | contract | 0 | 0 | 1 |
Troubled debt restructuring that subsequently defaulted, recorded investment | $ 0 | $ 0 | $ 222,000 |
Commercial real estate | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 0 |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 |
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 |
Troubled debt restructuring that subsequently defaulted, number of contracts | contract | 0 | 0 | 0 |
Troubled debt restructuring that subsequently defaulted, recorded investment | $ 0 | $ 0 | $ 0 |
Home equity line of credit | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 3 | 53 | 44 |
Pre-modification outstanding recorded investment | $ 442,000 | $ 6,659,000 | $ 2,791,000 |
Post-modification outstanding recorded investment | $ 73,000 | $ 578,000 | $ 545,000 |
Troubled debt restructuring that subsequently defaulted, number of contracts | contract | 0 | 1 | 0 |
Troubled debt restructuring that subsequently defaulted, recorded investment | $ 0 | $ 81,000 | $ 0 |
Residential land | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 3 | 2 | 1 |
Pre-modification outstanding recorded investment | $ 1,086,000 | $ 1,338,000 | $ 92,000 |
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 |
Troubled debt restructuring that subsequently defaulted, number of contracts | contract | 0 | 0 | 0 |
Troubled debt restructuring that subsequently defaulted, recorded investment | $ 0 | $ 0 | $ 0 |
Commercial construction | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 0 |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 |
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 |
Troubled debt restructuring that subsequently defaulted, number of contracts | contract | 0 | 0 | 0 |
Troubled debt restructuring that subsequently defaulted, recorded investment | $ 0 | $ 0 | $ 0 |
Residential construction | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 0 |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 |
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 |
Troubled debt restructuring that subsequently defaulted, number of contracts | contract | 0 | 0 | 0 |
Troubled debt restructuring that subsequently defaulted, recorded investment | $ 0 | $ 0 | $ 0 |
Commercial | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 8 | 12 | 8 |
Pre-modification outstanding recorded investment | $ 5,523,000 | $ 2,165,000 | $ 525,000 |
Post-modification outstanding recorded investment | $ 417,000 | $ 211,000 | $ 250,000 |
Troubled debt restructuring that subsequently defaulted, number of contracts | contract | 0 | 1 | 0 |
Troubled debt restructuring that subsequently defaulted, recorded investment | $ 0 | $ 246,000 | $ 0 |
Consumer | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 1 |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 58,000 |
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 29,000 |
Troubled debt restructuring that subsequently defaulted, number of contracts | contract | 0 | 0 | 0 |
Troubled debt restructuring that subsequently defaulted, recorded investment | $ 0 | $ 0 | $ 0 |
Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Minimum period of payment default of loans determined to be TDRs | 90 days | 90 days | 90 days |
Bank segment (HEI only) - Mortg
Bank segment (HEI only) - Mortgage Servicing Rights, Narrative (Details) - American Savings Bank (ASB) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans receivable | |||
Repurchased mortgage loans | $ 0 | $ 0 | $ 0 |
Mortgage loans repurchase reserve | 100,000 | 100,000 | 100,000 |
Mortgage servicing fees | 3,000,000 | 3,000,000 | 3,000,000 |
Residential loan | |||
Loans receivable | |||
Proceeds from sale of mortgage loans | 277,100,000 | 112,200,000 | 128,000,000 |
Gain on sale of mortgage loans | $ 4,900,000 | $ 1,500,000 | $ 2,200,000 |
Bank segment (HEI only) - Mor_2
Bank segment (HEI only) - Mortgage Servicing Rights (Details) - American Savings Bank (ASB) - Allowance for mortgage-servicing assets – bank - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans receivable | ||||
Gross carrying amount | $ 21,543 | $ 18,556 | ||
Accumulated amortization | (12,442) | (10,494) | ||
Valuation allowance | 0 | 0 | $ 0 | $ 0 |
Net carrying amount | $ 9,101 | $ 8,062 | $ 8,639 |
Bank segment (HEI only) - Mor_3
Bank segment (HEI only) - Mortgage Servicing Rights and Valuation Allowance Roll Forward (Details) - American Savings Bank (ASB) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage Servicing Rights [Roll Forward] | |||
Beginning balance | $ 8,062 | ||
Ending balance | 9,101 | $ 8,062 | |
Allowance for mortgage-servicing assets – bank | |||
Mortgage Servicing Rights [Roll Forward] | |||
Beginning balance | 8,062 | 8,639 | $ 9,373 |
Amount capitalized | 2,987 | 1,045 | 1,239 |
Amortization | (1,948) | (1,622) | (1,973) |
Sale of mortgage servicing rights | 0 | 0 | 0 |
Other-than-temporary impairment | 0 | 0 | 0 |
Ending balance | 9,101 | 8,062 | 8,639 |
Valuation Allowance [Roll Forward] | |||
Valuation allowance, beginning balance | 0 | 0 | 0 |
Provision (recovery) | 0 | 0 | 0 |
Other-than-temporary impairment | 0 | 0 | 0 |
Valuation allowance, ending balance | 0 | 0 | 0 |
Net carrying amount | 9,101 | $ 8,062 | $ 8,639 |
Estimated Aggregate Amortization Expenses of Mortgage Servicing Rights [Abstract] | |||
2020 | 1,500 | ||
2021 | 1,200 | ||
2022 | 1,100 | ||
2023 | 900 | ||
2024 | $ 800 |
Bank segment (HEI only) - Key A
Bank segment (HEI only) - Key Assumptions Used in Estimating the Fair Value of ASB's Mortgage Servicing Rights (Details) - Allowance for mortgage-servicing assets – bank $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Prepayment rate: | ||
25 basis points adverse rate change | $ (950) | $ (250) |
50 basis points adverse rate change | (1,947) | (566) |
Discount rate: | ||
25 basis points adverse rate change | (102) | (139) |
50 basis points adverse rate change | (202) | (275) |
American Savings Bank (ASB) | ||
Mortgage Servicing Rights | ||
Unpaid principal balance | $ 1,276,437 | $ 1,188,514 |
Weighted average note rate | 3.96% | 3.98% |
American Savings Bank (ASB) | Discount rate | ||
Mortgage Servicing Rights | ||
Weighted average measurement input | 0.093 | 0.100 |
American Savings Bank (ASB) | Prepayment speed | ||
Mortgage Servicing Rights | ||
Weighted average measurement input | 0.114 | 0.065 |
Bank segment (HEI only) - Depos
Bank segment (HEI only) - Deposit Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted-average stated rate | |||
Savings | 0.09% | 0.07% | |
Checking, interest-bearing | 0.09% | 0.09% | |
Checking, Noninterest-bearing | 0.00% | 0.00% | |
Commercial checking | 0.00% | 0.00% | |
Money market | 0.69% | 0.63% | |
Time certificates | 1.42% | 1.61% | |
Total weighted-average stated rate | 0.24% | 0.27% | |
Deposit liabilities | |||
Savings | $ 2,379,522 | $ 2,322,552 | |
Checking | |||
Interest-bearing | 1,062,122 | 1,055,019 | |
Noninterest-bearing | 977,459 | 932,608 | |
Commercial checking | 932,223 | 868,119 | |
Money market | 150,751 | 152,713 | |
Time certificates | 769,825 | 827,841 | |
Total Amount | 6,271,902 | 6,158,852 | |
Certificate accounts of $100,000 or more | 456,500 | 500,200 | |
Term certificates outstanding, scheduled maturities | |||
2020 | 503,214 | ||
2021 | 112,632 | ||
2022 | 87,132 | ||
2023 | 29,134 | ||
2024 | 35,253 | ||
Thereafter | 2,460 | ||
Total | 769,825 | ||
Overdrawn deposit accounts classified as loans | 2,400 | 2,100 | |
Interest expense on deposit liabilities by type of deposit | |||
Time certificates | 12,675 | 11,044 | $ 7,687 |
Savings | 1,904 | 1,639 | 1,567 |
Money market | 953 | 602 | 168 |
Interest-bearing checking | 1,298 | 706 | 238 |
Interest expense on deposit liabilities | $ 16,830 | $ 13,991 | $ 9,660 |
Bank segment (HEI only) - Secur
Bank segment (HEI only) - Securities Sold Under Agreements to Repurchase, Including Related Collateral Received From or Pledged to Counterparties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Securities sold under agreements to repurchase | |||
Gross amount of recognized liabilities | $ 115,000 | $ 65,000 | |
Gross amount offset in the Balance Sheets | 0 | 0 | |
Net amount of liabilities presented in the Balance Sheets | $ 115,000 | 65,000 | |
Fair value of collateral, percent of fair value | 5.00% | ||
Repurchase liability | $ 115,110 | $ 65,040 | |
Weighted-average interest rate as of end of the period | 0.98% | 0.75% | |
Identical securities | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $ 115,000 | $ 65,000 | $ 141,000 |
Average amount outstanding during the year | 80,000 | 99,000 | 98,000 |
Maximum amount outstanding as of any month-end | $ 115,000 | $ 152,000 | $ 141,000 |
Weighted-average interest rate as of end of the period | 0.98% | 0.75% | 0.65% |
Weighted-average interest rate during the year | 0.96% | 0.71% | 0.26% |
Weighted-average remaining days to maturity as of end of the period | 1 day | 1 day | 1 day |
Commercial account holders | |||
Securities sold under agreements to repurchase | |||
Net amount of liabilities presented in the Balance Sheets | $ 115,000 | $ 65,000 | |
Financial instruments | 130,000 | 92,000 | |
Cash collateral pledged | $ 0 | $ 0 |
Bank segment (HEI only) - Sec_2
Bank segment (HEI only) - Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 115,110 | $ 65,040 |
Weighted-average interest rate | 0.98% | 0.75% |
Collateralized by mortgage-related securities and federal agency obligations | ||
Securities sold under agreements to repurchase | ||
Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | $ 129,527 | $ 92,290 |
Overnight | ||
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 115,110 | $ 65,040 |
Weighted-average interest rate | 0.98% | 0.75% |
Overnight | Collateralized by mortgage-related securities and federal agency obligations | ||
Securities sold under agreements to repurchase | ||
Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | $ 129,527 | $ 92,290 |
1 to 29 days | ||
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 0 | $ 0 |
Weighted-average interest rate | 0.00% | 0.00% |
1 to 29 days | Collateralized by mortgage-related securities and federal agency obligations | ||
Securities sold under agreements to repurchase | ||
Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | $ 0 | $ 0 |
30 to 90 days | ||
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 0 | $ 0 |
Weighted-average interest rate | 0.00% | 0.00% |
30 to 90 days | Collateralized by mortgage-related securities and federal agency obligations | ||
Securities sold under agreements to repurchase | ||
Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | $ 0 | $ 0 |
Over 90 days | ||
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 0 | $ 0 |
Weighted-average interest rate | 0.00% | 0.00% |
Over 90 days | Collateralized by mortgage-related securities and federal agency obligations | ||
Securities sold under agreements to repurchase | ||
Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | $ 0 | $ 0 |
Bank segment (HEI only) - FHLB
Bank segment (HEI only) - FHLB Advances (Details) - American Savings Bank (ASB) - USD ($) | Feb. 28, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
FHLB advances | $ 0 | $ 45,000,000 | |
FHLB advances, unused funds | $ 2,300,000,000 | $ 2,000,000,000 | |
Subsequent Event | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
FHLB advances, unused funds | $ 1,500,000,000 | ||
Percent in first lien position | 54.00% |
Bank segment (HEI only) - Addit
Bank segment (HEI only) - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 1988 | |
Parent Company | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Cash dividends paid | $ 157 | $ 154 | $ 125 | |
Parent Company | Consolidated subsidiary | American Savings Bank (ASB) | Management and administrative services | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Revenue from related party | 2.3 | 2.2 | $ 2.1 | |
Parent Company | Maximum | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Obligation to contribute additional capital under the Capital Maintenance Agreement | $ 65.1 | |||
Reduction in obligation to contribute additional capital under the Capital Maintenance Agreement | 28.3 | |||
American Savings Bank (ASB) | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Cash dividends paid | $ 56 | $ 50 |
Bank segment (HEI only) - Capit
Bank segment (HEI only) - Capital And Ratio (Details) - American Savings Bank (ASB) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage, actual capital | $ 641,547 | $ 606,291 |
Tier 1 leverage, actual ratio | 9.06% | 8.70% |
Tier 1 leverage, required capital | $ 283,122 | $ 278,811 |
Tier 1 leverage, required ratio | 4.00% | 4.00% |
Tier 1 leverage, required to be well capitalized capital | $ 353,903 | $ 348,514 |
Tier 1 leverage, required to be well capitalized ratio | 5.00% | 5.00% |
Common equity tier 1, actual capital | $ 641,547 | $ 606,291 |
Common equity tier 1, actual ratio | 13.18% | 12.80% |
Common equity tier 1, required capital | $ 219,071 | $ 213,190 |
Common equity tier 1, required ratio | 4.50% | 4.50% |
Common equity tier 1, required to be well capitalized, Capital | $ 316,435 | $ 307,941 |
Common equity tier 1, required to be well capitalized, Ratio | 6.50% | 6.50% |
Tier 1 capital, actual capital | $ 641,547 | $ 606,291 |
Tier 1 capital, actual ratio | 13.18% | 12.80% |
Tier 1 capital, required capital | $ 292,094 | $ 284,253 |
Tier 1 capital, required ratio | 6.00% | 6.00% |
Tier 1 capital, Required to be well capitalized, Capital | $ 389,459 | $ 379,004 |
Tier 1 capital, Required to be well capitalized, Ratio | 8.00% | 8.00% |
Total capital, Actual capital | $ 696,643 | $ 660,151 |
Total capital, Actual ratio | 14.31% | 13.93% |
Total capital, Required capital | $ 389,459 | $ 379,004 |
Total capital, Required ratio | 8.00% | 8.00% |
Total capital, Required to be well capitalized, Capital | $ 486,823 | $ 473,755 |
Total capital, Required to be well capitalized, Ratio | 10.00% | 10.00% |
Bank segment (HEI only) - Deriv
Bank segment (HEI only) - Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | $ 207 | $ (59) | $ (137) |
Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 300 | 91 | |
Liability derivative | 45 | 43 | |
Interest Rate Lock Commitments | |||
Derivative instrument | |||
Notional amount | 23,171 | 10,180 | |
Fair value | 297 | 91 | |
Interest Rate Lock Commitments | Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 297 | 91 | |
Liability derivative | 0 | 0 | |
Interest Rate Lock Commitments | Not Designated as Hedging Instrument | Mortgage banking income | |||
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | 206 | (40) | (290) |
Forward commitments | |||
Derivative instrument | |||
Notional amount | 29,383 | 10,132 | |
Fair value | (42) | (43) | |
Forward commitments | Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 3 | 0 | |
Liability derivative | 45 | 43 | |
Forward commitments | Not Designated as Hedging Instrument | Mortgage banking income | |||
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | $ 1 | $ (19) | $ 153 |
Bank segment (HEI only) - Off B
Bank segment (HEI only) - Off Balance Sheet Arrangements and Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
American Savings Bank (ASB) | ||||
Guarantees | ||||
Minimum reserve ratio | 1.36% | |||
FDIC insurance assessment | $ 1,200 | $ 2,500 | $ 2,600 | |
American Savings Bank (ASB) | Indemnification Agreement | ||||
Guarantees | ||||
Accrued indemnification litigation obligation | 1,100 | |||
Reserve for Off-balance Sheet Activities | ||||
Guarantees | ||||
Unused commitments to extend credit | 1,878,791 | 1,859,046 | ||
Home equity line of credit | ||||
Guarantees | ||||
Unused commitments to extend credit | 1,290,854 | 1,242,804 | ||
Commercial and commercial real estate | ||||
Guarantees | ||||
Unused commitments to extend credit | 484,806 | 515,058 | ||
Consumer | ||||
Guarantees | ||||
Unused commitments to extend credit | 70,088 | 70,292 | ||
Residential 1-4 family | ||||
Guarantees | ||||
Unused commitments to extend credit | 21,131 | 17,552 | ||
Commercial and financial standby letters of credit | ||||
Guarantees | ||||
Unused commitments to extend credit | $ 11,912 | $ 13,340 |
Short-term borrowings (Details)
Short-term borrowings (Details) | Dec. 23, 2019USD ($) | Dec. 31, 2019USD ($)instrumentInstitution | Dec. 31, 2018USD ($) |
Short-term borrowings | |||
Outstanding amount | $ 185,710,000 | $ 73,992,000 | |
Maximum | |||
Short-term borrowings | |||
Capitalization ratio required to be maintained as per the debt covenant | 50.00% | ||
Letter of Credit | Hamakua Energy Partners, L.P. (HEP) | |||
Short-term borrowings | |||
Number of letters of credit entered into during the period | instrument | 3 | ||
Letters of credit outstanding | $ 6,000,000 | 7,000,000 | |
Commercial paper | |||
Short-term borrowings | |||
Outstanding amount | $ 97,000,000 | $ 49,000,000 | |
Weighted-average interest rate | 2.30% | 2.90% | |
Line of credit facility | Term Loan Credit Agreement Maturing December 2020 | |||
Short-term borrowings | |||
Line of credit facility basis point spread | 1.375% | ||
Annual fees on undrawn commitments, basis points (as a percent) | 0.20% | ||
Line of credit facility | Credit Facilities Effective July 2017 | |||
Short-term borrowings | |||
Number of financial institutions | Institution | 8 | ||
Line of credit facility | HEI Facility | |||
Short-term borrowings | |||
Maximum capacity under syndicated credit facilities | $ 150,000,000 | ||
Short-term debt, net | $ 0 | $ 0 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Short-term borrowings | |||
Weighted-average interest rate | 2.30% | ||
Short-term debt, net | $ 88,987,000 | 25,000,000 | |
Ratio of consolidated subsidiary debt to total consolidated capitalization required to be maintained as per the debt covenant | 65.00% | ||
Ratio of consolidated capitalization required to be maintained as per the debt covenant | 35.00% | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Commercial paper | |||
Short-term borrowings | |||
Outstanding amount | $ 39,000,000 | 0 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Line of credit facility | Term Loan Credit Agreement Maturing December 2020 | |||
Short-term borrowings | |||
Debt instrument term | 364 days | ||
Maximum capacity under syndicated credit facilities | $ 100,000,000 | ||
Proceeds from lines of credit | $ 50,000,000 | ||
Remaining borrowing capacity | $ 50,000,000 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Line of credit facility | Credit Facilities Effective July 2017 | |||
Short-term borrowings | |||
Number of financial institutions | Institution | 8 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Line of credit facility | Hawaiian Electric Facility | |||
Short-term borrowings | |||
Maximum capacity under syndicated credit facilities | $ 200,000,000 | ||
Short-term debt, net | $ 0 | $ 0 |
Long-term debt - Schedule of Lo
Long-term debt - Schedule of Long-Term Debt and Maturities (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Less unamortized debt issuance costs | $ (2,350,000) | $ (2,599,000) | |
Long-term debt, net—other than bank | 1,964,365,000 | 1,879,641,000 | |
Aggregate principal payments, fiscal year maturity: | |||
2020 | 102,000,000 | ||
2021 | 54,000,000 | ||
2022 | 213,000,000 | ||
2023 | 154,000,000 | ||
2024 | 5,000,000 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | 1,505,000,000 | 1,426,546,000 | |
Aggregate principal payments, fiscal year maturity: | |||
2020 | 96,000,000 | ||
2021 | 0 | ||
2022 | 52,000,000 | ||
2023 | 100,000,000 | ||
2024 | 0 | ||
Special purpose revenue bonds issued on behalf of electric utility subsidiaries | |||
Debt Instrument [Line Items] | |||
Long-term debt, net—other than bank | 1,497,667,000 | 1,418,802,000 | |
Senior notes | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | 963,000,000 | 913,000,000 | |
Senior notes | HEI 2.99% term loan, due 2022 | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | 150,000,000 | 150,000,000 | |
Senior notes | HEI 5.67% senior notes, due 2021 | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 50,000,000 | 50,000,000 | |
Debt instrument, stated interest rate | 5.67% | ||
Senior notes | HEI 3.99% senior notes, due 2023 | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 50,000,000 | 50,000,000 | |
Debt instrument, stated interest rate | 3.99% | ||
Senior notes | HEI 4.58% senior notes, due 2025 | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 4.58% | ||
Senior notes | HEI 4.72% senior notes, due 2028 | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 4.72% | ||
Senior notes | Hamakua Energy 4.02% notes, due 2030, secured by real and personal property of Hamakua Energy, LLC | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 59,699,000 | 63,438,000 | |
Debt instrument, stated interest rate | 4.02% | ||
Term loan | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 542,000,000 | 462,000,000 | |
Term loan | HEI 2.99% term loan, due 2022 | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 2.99% | ||
Term loan | HEI 4.58% senior notes, due 2025 | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 50,000,000 | 50,000,000 | |
Term loan | HEI 4.72% senior notes, due 2028 | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | 100,000,000 | 100,000,000 | |
Unsecured Debt | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | 963,000,000 | 964,546,000 | |
Unsecured Debt | Mauo Unsecured Loan Due 2022 | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 9,349,000 | $ 0 | |
Aggregate principal payments, fiscal year maturity: | |||
Debt instrument, face amount | $ 50,500,000 | ||
Line of credit facility basis point spread | 1.375% | ||
Unsecured Debt | Mauo Unsecured Loan Due 2022 | LIBOR | |||
Aggregate principal payments, fiscal year maturity: | |||
Line of credit facility basis point spread | 1.375% |
Long-term debt - Changes in Lon
Long-term debt - Changes in Long-Term Debt (Details) - USD ($) | Dec. 31, 2019 | Jul. 26, 2019 | May 15, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 10, 2019 | Jul. 18, 2019 | May 13, 2019 |
Debt Instrument [Line Items] | ||||||||||
Repayments of long-term debt | $ 287,285,000 | $ 53,887,000 | $ 465,000,000 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 1,505,000,000 | 1,505,000,000 | 1,426,546,000 | |||||||
Repayments of long-term debt | 283,546,000 | 50,000,000 | $ 265,000,000 | |||||||
Repayments of long-term debt including interest | 84,000,000 | |||||||||
Interest paid | 2,000,000 | |||||||||
Hawaiian Electric | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of long-term debt | 62,000,000 | |||||||||
Maui Electric | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of long-term debt | 20,000,000 | |||||||||
Unsecured Debt | Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | 963,000,000 | $ 963,000,000 | 964,546,000 | |||||||
Unsecured Debt | Mauo Unsecured Loan Due 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 50,500,000 | |||||||||
Line of credit facility basis point spread | 1.375% | |||||||||
Long-term debt | 9,349,000 | $ 9,349,000 | $ 0 | |||||||
Unsecured Debt | Mauo Unsecured Loan Due 2022 | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility basis point spread | 1.375% | |||||||||
Unsecured Debt | Series 2019A | Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 50,000,000 | |||||||||
Debt instrument, stated interest rate | 4.21% | |||||||||
Unsecured Debt | Series 2019A | Hawaiian Electric | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 30,000,000 | |||||||||
Unsecured Debt | Series 2019A | Hawaii Electric Light | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | 10,000,000 | |||||||||
Unsecured Debt | Series 2019A | Maui Electric | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 10,000,000 | |||||||||
Unsecured Debt | 2004 Junior subordinated deferrable interest debentures redeemed | Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, stated interest rate | 6.50% | |||||||||
Extinguishment of debt amount | $ 51,500,000 | |||||||||
Unsecured Debt | 2004 Junior subordinated deferrable interest debentures redeemed | Hawaiian Electric | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extinguishment of debt amount | 31,500,000 | |||||||||
Unsecured Debt | 2004 Junior subordinated deferrable interest debentures redeemed | Hawaii Electric Light | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extinguishment of debt amount | 10,000,000 | |||||||||
Unsecured Debt | 2004 Junior subordinated deferrable interest debentures redeemed | Maui Electric | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extinguishment of debt amount | $ 10,000,000 | |||||||||
Unsecured Debt | Refunding Series 2019 Special Purpose Revenue Bonds | Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 150,000,000 | |||||||||
Debt instrument, stated interest rate | 3.20% | |||||||||
Unsecured Debt | Refunding Series 2019 Special Purpose Revenue Bonds | Hawaiian Electric | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 90,000,000 | |||||||||
Unsecured Debt | Refunding Series 2019 Special Purpose Revenue Bonds | Hawaii Electric Light | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 60,000,000 | |||||||||
Unsecured Debt | Series 2009 Special Purpose Revenue Bonds Redeemed | Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, stated interest rate | 6.50% | |||||||||
Extinguishment of debt amount | $ 150,000,000 | |||||||||
Unsecured Debt | Series 2009 Special Purpose Revenue Bonds Redeemed | Hawaiian Electric | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extinguishment of debt amount | 90,000,000 | |||||||||
Unsecured Debt | Series 2009 Special Purpose Revenue Bonds Redeemed | Hawaii Electric Light | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extinguishment of debt amount | $ 60,000,000 | |||||||||
Unsecured Debt | Series 2019 Special Purpose Revenue Bonds | Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 80,000,000 | |||||||||
Debt instrument, stated interest rate | 3.50% | |||||||||
Unsecured Debt | Series 2019 Special Purpose Revenue Bonds | Hawaiian Electric | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 70,000,000 | |||||||||
Undrawn funds sitting with trustee | 30,800,000 | 30,800,000 | ||||||||
Unsecured Debt | Series 2019 Special Purpose Revenue Bonds | Hawaii Electric Light | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | 2,500,000 | |||||||||
Undrawn funds sitting with trustee | 100,000 | 100,000 | ||||||||
Unsecured Debt | Series 2019 Special Purpose Revenue Bonds | Maui Electric | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 7,500,000 | |||||||||
Undrawn funds sitting with trustee | $ 0 | $ 0 |
Shareholders' equity - Addition
Shareholders' equity - Additional Information (Details) shares in Millions | Dec. 31, 2019shares |
Equity [Abstract] | |
Common stock reserved for future issuance (in shares) | 18.5 |
Shareholders' equity - Accumula
Shareholders' equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | $ 2,162,280 | $ 2,097,386 | $ 2,066,753 |
Current period other comprehensive income (loss) and reclassifications, net of taxes | 30,571 | (8,669) | (1,372) |
Reclass of AOCI for tax rate reduction impact1 | (7,440) | ||
Ending Balance | 2,280,260 | 2,162,280 | 2,097,386 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | 1,957,641 | 1,845,283 | 1,799,787 |
Current period other comprehensive income (loss) and reclassifications, net of taxes | (1,378) | 1,318 | (688) |
Reclass of AOCI for tax rate reduction impact1 | (209) | ||
Ending Balance | 2,047,352 | 1,957,641 | 1,845,283 |
AOCI | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (50,610) | (41,941) | (33,129) |
Current period other comprehensive income (loss) and reclassifications, net of taxes | 30,571 | (8,669) | (1,372) |
Ending Balance | (20,039) | (50,610) | (41,941) |
AOCI | Hawaiian Electric Company, Inc. and Subsidiaries | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | 99 | (1,219) | (322) |
Current period other comprehensive income (loss) and reclassifications, net of taxes | (1,378) | 1,318 | (688) |
Reclass of AOCI for tax rate reduction impact1 | (209) | ||
Ending Balance | (1,279) | 99 | (1,219) |
Net unrealized gains (losses) on securities | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (24,423) | (14,951) | (7,931) |
Current period other comprehensive income (loss) and reclassifications, net of taxes | 26,904 | (9,472) | (4,370) |
Reclass of AOCI for tax rate reduction impact1 | (2,650) | ||
Ending Balance | 2,481 | (24,423) | (14,951) |
Unrealized gains (losses) on derivatives | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (436) | 0 | (454) |
Current period other comprehensive income (loss) and reclassifications, net of taxes | (1,177) | (436) | 454 |
Reclass of AOCI for tax rate reduction impact1 | 0 | ||
Ending Balance | (1,613) | (436) | 0 |
Unrealized gains (losses) on derivatives | Hawaiian Electric Company, Inc. and Subsidiaries | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | 0 | 0 | (454) |
Current period other comprehensive income (loss) and reclassifications, net of taxes | 0 | 0 | 454 |
Reclass of AOCI for tax rate reduction impact1 | 0 | ||
Ending Balance | 0 | 0 | 0 |
Retirement benefit plans | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (25,751) | (26,990) | (24,744) |
Current period other comprehensive income (loss) and reclassifications, net of taxes | 4,844 | 1,239 | 2,544 |
Reclass of AOCI for tax rate reduction impact1 | (4,790) | ||
Ending Balance | (20,907) | (25,751) | (26,990) |
Retirement benefit plans | Hawaiian Electric Company, Inc. and Subsidiaries | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | 99 | (1,219) | 132 |
Current period other comprehensive income (loss) and reclassifications, net of taxes | (1,378) | 1,318 | (1,142) |
Reclass of AOCI for tax rate reduction impact1 | (209) | ||
Ending Balance | $ (1,279) | $ 99 | $ (1,219) |
Shareholders' equity - Reclassi
Shareholders' equity - Reclassification Out Of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Revenues | $ (725,966) | $ (771,535) | $ (715,485) | $ (661,615) | $ (761,650) | $ (768,048) | $ (685,277) | $ (645,874) | $ (2,874,601) | $ (2,860,849) | $ (2,555,625) |
Total reclassifications | (6,548) | 29,340 | (62,533) | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Revenues | $ (645,333) | $ (688,330) | $ (633,784) | $ (578,495) | $ (680,563) | $ (687,409) | $ (608,126) | $ (570,427) | (2,545,942) | (2,546,525) | (2,257,566) |
Total reclassifications | (6,627) | 27,337 | (63,793) | ||||||||
Bank | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Revenues | (328,570) | (314,275) | (297,640) | ||||||||
Electric utility | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Revenues | (2,545,942) | (2,546,525) | (2,257,566) | ||||||||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | 10,107 | 21,015 | 15,737 | ||||||||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | 9,550 | 19,012 | 14,477 | ||||||||
Accumulated Defined Benefit Plans Adjustment, Impact Of Decision And Orders Of The Public Utility Commission Included In Regulatory Assets | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | (16,177) | 8,325 | (78,724) | ||||||||
Accumulated Defined Benefit Plans Adjustment, Impact Of Decision And Orders Of The Public Utility Commission Included In Regulatory Assets | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | (16,177) | 8,325 | (78,724) | ||||||||
Amount reclassified from AOCI | Net unrealized gains (losses) on securities | Bank | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Revenues | (478) | 0 | 0 | ||||||||
Amount reclassified from AOCI | Unrealized gains (losses) on derivatives | Window forward contracts | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | 0 | 0 | 454 | ||||||||
Amount reclassified from AOCI | Unrealized gains (losses) on derivatives | Electric utility | Window forward contracts | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | $ 0 | $ 0 | $ 454 |
Leases - (Details)
Leases - (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 31, 2020USD ($) | Aug. 31, 2019USD ($)ft² | |
Lessee, Lease, Description [Line Items] | |||||
Renewal option (up to) | 10 years | ||||
Operating lease, liability | $ 199,571 | ||||
Lease payments basis reduction for impact of collateral | 0.15% | ||||
Operating lease cost | $ 73,584 | ||||
Variable lease cost | 205,172 | ||||
Total lease cost | 278,756 | ||||
Cash paid for amounts included in the measurement of lease liabilities : | |||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 73,041 | ||||
Weighted-average remaining lease term—operating leases (in years) | 3 years 6 months | ||||
Weighted-average discount rate—operating leases | 3.96% | ||||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||||
2020 | $ 75,000 | ||||
2021 | 73,000 | ||||
2022 | 48,000 | ||||
2023 | 5,000 | ||||
2024 | 4,000 | ||||
Thereafter | 9,000 | ||||
Total lease payments | 214,000 | ||||
Less: Imputed interest | (14,000) | ||||
Total present value of lease payments1 | $ 200,000 | ||||
Future minimum lease payments | |||||
2019 | $ 74,000 | ||||
2020 | 72,000 | ||||
2021 | 71,000 | ||||
2022 | 47,000 | ||||
2023 | 4,000 | ||||
Thereafter | 12,000 | ||||
Total lease payments | 280,000 | ||||
Operating lease, rent expense | 21,000 | $ 20,000 | |||
FHLB Des Moines | Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Long-term debt term | 30 years | ||||
Other Operating Leases | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease cost | $ 10,265 | ||||
Variable lease cost | 13,034 | ||||
Total lease cost | 23,299 | ||||
Cash paid for amounts included in the measurement of lease liabilities : | |||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 10,447 | ||||
Weighted-average remaining lease term—operating leases (in years) | 6 years 6 months | ||||
Weighted-average discount rate—operating leases | 3.50% | ||||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||||
2020 | $ 12,000 | ||||
2021 | 10,000 | ||||
2022 | 6,000 | ||||
2023 | 5,000 | ||||
2024 | 4,000 | ||||
Thereafter | 9,000 | ||||
Total lease payments | 46,000 | ||||
Less: Imputed interest | (5,000) | ||||
Total present value of lease payments1 | 41,000 | ||||
Future minimum lease payments | |||||
2019 | 11,000 | ||||
2020 | 9,000 | ||||
2021 | 8,000 | ||||
2022 | 5,000 | ||||
2023 | 4,000 | ||||
Thereafter | 12,000 | ||||
Total lease payments | 49,000 | ||||
Power Purchase Agreements Qualifying As Operating Leases | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease cost | 63,319 | ||||
Variable lease cost | 192,138 | ||||
Total lease cost | 255,457 | ||||
Cash paid for amounts included in the measurement of lease liabilities : | |||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 62,594 | ||||
Weighted-average remaining lease term—operating leases (in years) | 2 years 9 months 18 days | ||||
Weighted-average discount rate—operating leases | 4.08% | ||||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||||
2020 | $ 63,000 | ||||
2021 | 63,000 | ||||
2022 | 42,000 | ||||
2023 | 0 | ||||
2024 | 0 | ||||
Thereafter | 0 | ||||
Total lease payments | 168,000 | ||||
Less: Imputed interest | (9,000) | ||||
Total present value of lease payments1 | 159,000 | ||||
Future minimum lease payments | |||||
2019 | 63,000 | ||||
2020 | 63,000 | ||||
2021 | 63,000 | ||||
2022 | 42,000 | ||||
2023 | 0 | ||||
Thereafter | 0 | ||||
Total lease payments | 231,000 | ||||
PGV Facility | |||||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||||
Operating lease, not in service, annual capacity payment | 7,000 | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease cost | 68,274 | ||||
Variable lease cost | 202,410 | ||||
Total lease cost | 270,684 | ||||
Cash paid for amounts included in the measurement of lease liabilities : | |||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 68,362 | ||||
Weighted-average remaining lease term—operating leases (in years) | 2 years 10 months 24 days | ||||
Weighted-average discount rate—operating leases | 4.08% | ||||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||||
2020 | $ 70,000 | ||||
2021 | 68,000 | ||||
2022 | 45,000 | ||||
2023 | 2,000 | ||||
2024 | 1,000 | ||||
Thereafter | 2,000 | ||||
Total lease payments | 188,000 | ||||
Less: Imputed interest | (11,000) | ||||
Total present value of lease payments1 | 177,000 | ||||
Future minimum lease payments | |||||
2019 | 69,000 | ||||
2020 | 69,000 | ||||
2021 | 68,000 | ||||
2022 | 44,000 | ||||
2023 | 2,000 | ||||
Thereafter | 3,000 | ||||
Total lease payments | 255,000 | ||||
Operating lease, rent expense | 11,000 | $ 11,000 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | Other Operating Leases | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease cost | 4,955 | ||||
Variable lease cost | 10,272 | ||||
Total lease cost | 15,227 | ||||
Cash paid for amounts included in the measurement of lease liabilities : | |||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 5,768 | ||||
Weighted-average remaining lease term—operating leases (in years) | 4 years 6 months | ||||
Weighted-average discount rate—operating leases | 4.11% | ||||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||||
2020 | $ 7,000 | ||||
2021 | 5,000 | ||||
2022 | 3,000 | ||||
2023 | 2,000 | ||||
2024 | 1,000 | ||||
Thereafter | 2,000 | ||||
Total lease payments | 20,000 | ||||
Less: Imputed interest | (2,000) | ||||
Total present value of lease payments1 | 18,000 | ||||
Future minimum lease payments | |||||
2019 | 6,000 | ||||
2020 | 6,000 | ||||
2021 | 5,000 | ||||
2022 | 2,000 | ||||
2023 | 2,000 | ||||
Thereafter | 3,000 | ||||
Total lease payments | 24,000 | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | Power Purchase Agreements Qualifying As Operating Leases | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease cost | 63,319 | ||||
Variable lease cost | 192,138 | ||||
Total lease cost | 255,457 | ||||
Cash paid for amounts included in the measurement of lease liabilities : | |||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 62,594 | ||||
Weighted-average remaining lease term—operating leases (in years) | 2 years 9 months 18 days | ||||
Weighted-average discount rate—operating leases | 4.08% | ||||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||||
2020 | $ 63,000 | ||||
2021 | 63,000 | ||||
2022 | 42,000 | ||||
2023 | 0 | ||||
2024 | 0 | ||||
Thereafter | 0 | ||||
Total lease payments | 168,000 | ||||
Less: Imputed interest | (9,000) | ||||
Total present value of lease payments1 | $ 159,000 | ||||
Future minimum lease payments | |||||
2019 | 63,000 | ||||
2020 | 63,000 | ||||
2021 | 63,000 | ||||
2022 | 42,000 | ||||
2023 | 0 | ||||
Thereafter | 0 | ||||
Total lease payments | $ 231,000 | ||||
Honolulu | |||||
Lessee, Lease, Description [Line Items] | |||||
Area of real estate property (in square feet) | ft² | 195,000 | ||||
Operating lease term | 12 years | ||||
Operating lease renewal term (up to) | 10 years | ||||
Honolulu | Subsequent Event | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease, liability | $ 21,000 | ||||
Honolulu | Office Space Lease, Phase 1, Commencement January 2020 | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease not yet commenced, annual rent expense | $ 1,900 | ||||
Lease not yet commenced expected reimbursements for improvements | 5,000 | ||||
Honolulu | Office Space Lease, Phase 2, Commencement January 2021 | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease not yet commenced, annual rent expense | 1,700 | ||||
Lease not yet commenced liability | 19,000 | ||||
Lease not yet commenced expected reimbursements for improvements | $ 4,600 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||||||||||
General payment period | 30 days | ||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | $ 2,622,025 | $ 2,614,831 | |||||||||
Revenue Not from Contract with Customer | 252,576 | 246,018 | |||||||||
Revenues | $ 725,966 | $ 771,535 | $ 715,485 | $ 661,615 | $ 761,650 | $ 768,048 | $ 685,277 | $ 645,874 | 2,874,601 | 2,860,849 | $ 2,555,625 |
Services/goods transferred at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 46,659 | 47,300 | |||||||||
Services/goods transferred over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 2,575,366 | 2,567,531 | |||||||||
Electric energy sales - residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 807,652 | 801,846 | |||||||||
Electric energy sales - commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 846,110 | 853,672 | |||||||||
Electric energy sales - large light and power | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 905,308 | 894,770 | |||||||||
Electric energy sales - other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 16,296 | 17,243 | |||||||||
Bank fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 46,659 | 47,300 | |||||||||
Regulatory revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | (54,101) | (37,687) | |||||||||
Bank interest and dividend income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | 266,554 | 258,225 | |||||||||
Other bank noninterest income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | 15,357 | 8,750 | |||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | 24,766 | 16,730 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue taxes, other than income tax expense | 226,000 | 226,000 | 202,000 | ||||||||
Revenue taxes accrued | $ 132,000 | $ 130,000 | 132,000 | 130,000 | |||||||
Electric utility | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 2,575,366 | 2,567,531 | |||||||||
Revenue Not from Contract with Customer | (29,424) | (21,006) | |||||||||
Revenues | 2,545,942 | 2,546,525 | 2,257,566 | ||||||||
Electric utility | Services/goods transferred at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Electric utility | Services/goods transferred over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 2,575,366 | 2,567,531 | |||||||||
Electric utility | Electric energy sales - residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 807,652 | 801,846 | |||||||||
Electric utility | Electric energy sales - commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 846,110 | 853,672 | |||||||||
Electric utility | Electric energy sales - large light and power | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 905,308 | 894,770 | |||||||||
Electric utility | Electric energy sales - other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 16,296 | 17,243 | |||||||||
Electric utility | Bank fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Electric utility | Regulatory revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | (54,101) | (37,687) | |||||||||
Electric utility | Bank interest and dividend income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | 0 | 0 | |||||||||
Electric utility | Other bank noninterest income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | 0 | 0 | |||||||||
Electric utility | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | 24,677 | 16,681 | |||||||||
Bank | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 46,659 | 47,300 | |||||||||
Revenue Not from Contract with Customer | 281,911 | 266,975 | |||||||||
Revenues | 328,570 | 314,275 | 297,640 | ||||||||
Bank | Services/goods transferred at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 46,659 | 47,300 | |||||||||
Bank | Services/goods transferred over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Bank | Electric energy sales - residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Bank | Electric energy sales - commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Bank | Electric energy sales - large light and power | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Bank | Electric energy sales - other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Bank | Bank fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 46,659 | 47,300 | |||||||||
Bank | Regulatory revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | 0 | 0 | |||||||||
Bank | Bank interest and dividend income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | 266,554 | 258,225 | |||||||||
Bank | Other bank noninterest income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | 15,357 | 8,750 | |||||||||
Bank | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | 0 | 0 | |||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Revenue Not from Contract with Customer | 89 | 49 | |||||||||
Revenues | 89 | 49 | $ 419 | ||||||||
Other | Services/goods transferred at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Other | Services/goods transferred over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Other | Electric energy sales - residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Other | Electric energy sales - commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Other | Electric energy sales - large light and power | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Other | Electric energy sales - other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Other | Bank fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | 0 | |||||||||
Other | Regulatory revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | 0 | 0 | |||||||||
Other | Bank interest and dividend income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | 0 | 0 | |||||||||
Other | Other bank noninterest income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | 0 | 0 | |||||||||
Other | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue Not from Contract with Customer | $ 89 | $ 49 |
Retirement benefits - Additiona
Retirement benefits - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Vested percentage of interest of each affected participant after participating employer terminates participation | 100.00% | ||
Number of years for which regulatory asset/liability for each utility will be amortized, beginning with respective utility's next rate case | 5 years | ||
Executive life and nonqualified pension plan expenses | $ 1,100,000 | $ 1,000,000 | |
Regulatory asset charges pretax | $ (21,800,000) | 11,200,000 | |
Fair value of plan assets, valuation difference amortized in first year | 0.00% | ||
Fair value of plan assets, valuation difference amortized in two to five years | 25.00% | ||
Number of past years for adding or subtracting the unamortized differences from fair value | 4 years | ||
Percentage of range around fair value | 15.00% | ||
Expected cash funding for qualified defined benefit plans | |||
Defined contribution plan, expenses recognized | $ 7,000,000 | 7,000,000 | $ 7,000,000 |
Cash contributions by the employer to defined contribution plan | 7,000,000 | 7,000,000 | 6,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Expected cash funding for qualified defined benefit plans | |||
Defined contribution plan, expenses recognized | $ 3,000,000 | 2,000,000 | 2,000,000 |
Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected rate of return on plan assets | 7.25% | ||
Discount rate | 3.69% | ||
Assumed discount rate, active manager premium | 0.20% | ||
Actual net return on plan assets | 24.30% | ||
Pension expense | $ 59,000,000 | 59,000,000 | 33,000,000 |
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in next fiscal year | 69,000,000 | ||
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension expense | 57,000,000 | $ 55,000,000 | 30,000,000 |
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in next fiscal year | $ 68,000,000 | ||
Other benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed health care trend rate for medical in next fiscal year | 7.00% | 7.25% | |
Assumed health care trend rate for grading down plan in 12 fiscal years thereafter | 5.00% | ||
Assumed health care trend rate for dental in next fiscal year | 5.00% | 5.00% | |
Assumed health care trend rate for vision in next fiscal year | 4.00% | 4.00% | |
Assumed health care trend rate for grading down in 2028 and thereafter | 5.00% | ||
Postretirement benefits other than pension expense | $ (100,000) | $ 0 | 1,000,000 |
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in next fiscal year | 0 | ||
2020 | 91,000,000 | ||
2021 | 95,000,000 | ||
2022 | 99,000,000 | ||
2023 | 103,000,000 | ||
2024 | 107,000,000 | ||
2025 through 2029 | 593,000,000 | ||
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Postretirement benefits other than pension expense | (300,000) | $ (100,000) | $ 800,000 |
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in next fiscal year | 0 | ||
2020 | 84,000,000 | ||
2021 | 87,000,000 | ||
2022 | 90,000,000 | ||
2023 | 93,000,000 | ||
2024 | 97,000,000 | ||
2025 through 2029 | $ 544,000,000 | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Threshold percentage around fair value | 85.00% | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Threshold percentage around fair value | 115.00% |
Retirement benefits - Changes i
Retirement benefits - Changes in Projected Benefit Obligations and Fair Value of Plan Assets and Amounts Recognized in OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Defined benefit pension and other postretirement benefit plans liability | $ (478,763) | $ (503,659) | |||
Pension benefits | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation, balance at the beginning of the period | $ 1,991,384 | $ 2,094,356 | |||
Service cost | 62,135 | 68,987 | $ 64,906 | ||
Interest cost | 84,267 | 77,374 | 81,185 | ||
Actuarial losses (gains) | 224,421 | (171,226) | |||
Participants contributions | 0 | 0 | |||
Benefits paid and expenses | (83,924) | (78,107) | |||
Benefit obligation, balance at the end of the period | 2,278,283 | 1,991,384 | 2,094,356 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 1,479,067 | 1,618,703 | |||
Actual return on plan assets | 354,072 | (101,406) | |||
Employer contributions | 48,629 | 38,496 | |||
Participants contributions | 0 | 0 | |||
Benefits paid and expenses | (82,568) | (76,726) | |||
Fair value of plan assets, balance at the end of the period | 1,799,200 | 1,479,067 | 1,618,703 | ||
Accrued benefit asset (liability), balance | (479,083) | (512,317) | |||
Other assets | 19,396 | 10,930 | |||
Defined benefit pension and other postretirement benefit plans liability | (498,479) | (523,247) | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Roll Forward] | |||||
AOCI debit/(credit), balance at beginning of the period (excluding impact of PUC D&Os) | 536,920 | 527,830 | |||
Recognized during year – prior service credit | 42 | 42 | |||
Recognized during year – net actuarial (losses) gains | (15,479) | (30,084) | |||
Occurring during year – net actuarial losses (gains) | (17,662) | 39,132 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 503,821 | 536,920 | 527,830 | ||
Cumulative impact of PUC D&Os | (474,628) | (498,944) | |||
AOCI debit/(credit), balance at end of the period | 29,193 | 37,976 | |||
Net actuarial loss | 503,813 | 536,954 | |||
Prior service cost (gain) | 8 | (34) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 536,920 | 536,920 | 527,830 | 503,821 | 536,920 |
Income taxes (benefits) | (7,677) | (10,023) | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | 21,516 | 27,953 | |||
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation, balance at the beginning of the period | 1,837,653 | 1,928,648 | |||
Service cost | 60,461 | 67,359 | 63,059 | ||
Interest cost | 77,851 | 71,294 | 74,632 | ||
Actuarial losses (gains) | 212,310 | (158,258) | |||
Participants contributions | 0 | 0 | |||
Benefits paid and expenses | (77,060) | (71,535) | |||
Transfers | (311) | 145 | |||
Benefit obligation, balance at the end of the period | 2,110,904 | 1,837,653 | 1,928,648 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 1,343,113 | 1,468,403 | |||
Actual return on plan assets | 326,204 | (91,836) | |||
Employer contributions | 47,808 | 37,550 | |||
Participants contributions | 0 | 0 | |||
Benefits paid and expenses | (76,581) | (71,060) | |||
Other | (127) | 56 | |||
Fair value of plan assets, balance at the end of the period | 1,640,417 | 1,343,113 | 1,468,403 | ||
Accrued benefit asset (liability), balance | (470,487) | (494,540) | |||
Other liabilities (short-term) | (518) | (512) | |||
Defined benefit pension and other postretirement benefit plans liability | (469,969) | (494,028) | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Roll Forward] | |||||
AOCI debit/(credit), balance at beginning of the period (excluding impact of PUC D&Os) | 502,189 | 493,464 | |||
Recognized during year – prior service credit | (7) | (8) | |||
Recognized during year – net actuarial (losses) gains | (14,658) | (27,302) | |||
Occurring during year – net actuarial losses (gains) | (9,446) | 36,035 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 478,078 | 502,189 | 493,464 | ||
Cumulative impact of PUC D&Os | (474,628) | (498,944) | |||
AOCI debit/(credit), balance at end of the period | 3,450 | 3,245 | |||
Net actuarial loss | 478,069 | 502,173 | |||
Prior service cost (gain) | 9 | 16 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 478,078 | 502,189 | 493,464 | 478,078 | 502,189 |
Income taxes (benefits) | (888) | (836) | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | 2,562 | 2,409 | |||
Other benefits | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation, balance at the beginning of the period | 188,666 | 212,601 | |||
Service cost | 2,209 | 2,721 | 3,374 | ||
Interest cost | 8,004 | 7,933 | 9,453 | ||
Actuarial losses (gains) | 25,998 | (25,977) | |||
Participants contributions | 2,351 | 2,505 | |||
Benefits paid and expenses | (11,589) | (11,117) | |||
Benefit obligation, balance at the end of the period | 215,639 | 188,666 | 212,601 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 173,693 | 193,995 | |||
Actual return on plan assets | 35,525 | (11,846) | |||
Employer contributions | 0 | 0 | |||
Participants contributions | 2,351 | 2,505 | |||
Benefits paid and expenses | (10,738) | (10,961) | |||
Fair value of plan assets, balance at the end of the period | 200,831 | 173,693 | 193,995 | ||
Accrued benefit asset (liability), balance | (14,808) | (14,973) | |||
Other assets | 0 | 0 | |||
Defined benefit pension and other postretirement benefit plans liability | (14,808) | (14,973) | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Roll Forward] | |||||
AOCI debit/(credit), balance at beginning of the period (excluding impact of PUC D&Os) | 1,962 | 1,474 | |||
Recognized during year – prior service credit | 1,806 | 1,805 | |||
Recognized during year – net actuarial (losses) gains | 13 | (95) | |||
Occurring during year – net actuarial losses (gains) | 2,829 | (1,222) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 6,610 | 1,962 | 1,474 | ||
Cumulative impact of PUC D&Os | (7,458) | (4,929) | |||
AOCI debit/(credit), balance at end of the period | (848) | (2,967) | |||
Net actuarial loss | 11,707 | 8,865 | |||
Prior service cost (gain) | (5,097) | (6,903) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 6,610 | 1,474 | 1,474 | 6,610 | 1,962 |
Income taxes (benefits) | 219 | 765 | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | (629) | (2,202) | |||
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation, balance at the beginning of the period | 181,162 | 204,644 | |||
Service cost | 2,191 | 2,704 | 3,353 | ||
Interest cost | 7,673 | 7,628 | 9,115 | ||
Actuarial losses (gains) | 25,123 | (25,330) | |||
Participants contributions | 2,311 | 2,472 | |||
Benefits paid and expenses | (11,382) | (10,958) | |||
Transfers | (5) | 2 | |||
Benefit obligation, balance at the end of the period | 207,073 | 181,162 | 204,644 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 170,862 | 190,814 | |||
Actual return on plan assets | 34,928 | (11,625) | |||
Employer contributions | 0 | 0 | |||
Participants contributions | 2,311 | 2,472 | |||
Benefits paid and expenses | (10,532) | (10,801) | |||
Other | (5) | 2 | |||
Fair value of plan assets, balance at the end of the period | 197,564 | 170,862 | 190,814 | ||
Accrued benefit asset (liability), balance | (9,509) | (10,300) | |||
Other liabilities (short-term) | (715) | (669) | |||
Defined benefit pension and other postretirement benefit plans liability | (8,794) | (9,631) | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Roll Forward] | |||||
AOCI debit/(credit), balance at beginning of the period (excluding impact of PUC D&Os) | 1,551 | 839 | |||
Recognized during year – prior service credit | 1,803 | 1,803 | |||
Recognized during year – net actuarial (losses) gains | 0 | (98) | |||
Occurring during year – net actuarial losses (gains) | 2,376 | (993) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 5,730 | 1,551 | 839 | ||
Cumulative impact of PUC D&Os | (7,458) | (4,929) | |||
AOCI debit/(credit), balance at end of the period | (1,728) | (3,378) | |||
Net actuarial loss | 10,815 | 8,439 | |||
Prior service cost (gain) | (5,085) | (6,888) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | $ 5,730 | $ 839 | $ 839 | 5,730 | 1,551 |
Income taxes (benefits) | 445 | 870 | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | $ (1,283) | $ (2,508) |
Retirement benefits - Asset All
Retirement benefits - Asset Allocation Target and Actual Percentage (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 100.00% | 100.00% |
Asset category, Target | ||
Target | 100.00% | |
Pension benefits | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 71.00% | 69.00% |
Asset category, Target | ||
Target | 70.00% | |
Pension benefits | Equity securities | Minimum | ||
Asset category, Target | ||
Target | 65.00% | |
Pension benefits | Equity securities | Maximum | ||
Asset category, Target | ||
Target | 75.00% | |
Pension benefits | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 29.00% | 31.00% |
Asset category, Target | ||
Target | 30.00% | |
Pension benefits | Fixed income securities | Minimum | ||
Asset category, Target | ||
Target | 25.00% | |
Pension benefits | Fixed income securities | Maximum | ||
Asset category, Target | ||
Target | 35.00% | |
Other benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 100.00% | 100.00% |
Asset category, Target | ||
Target | 100.00% | |
Other benefits | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 71.00% | 70.00% |
Asset category, Target | ||
Target | 70.00% | |
Other benefits | Equity securities | Minimum | ||
Asset category, Target | ||
Target | 65.00% | |
Other benefits | Equity securities | Maximum | ||
Asset category, Target | ||
Target | 75.00% | |
Other benefits | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 29.00% | 30.00% |
Asset category, Target | ||
Target | 30.00% | |
Other benefits | Fixed income securities | Minimum | ||
Asset category, Target | ||
Target | 25.00% | |
Other benefits | Fixed income securities | Maximum | ||
Asset category, Target | ||
Target | 35.00% |
Retirement benefits - Assets He
Retirement benefits - Assets Held In Retirement Benefit Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 1,799,200 | $ 1,479,067 | $ 1,618,703 |
Other benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 200,831 | 173,693 | $ 193,995 |
Fair value measurements on a recurring basis | Pension benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 1,799,000 | 1,479,000 | |
Fair value measurements on a recurring basis | Pension benefits | Total, excluding cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 1,795,000 | 1,474,000 | |
Fair value measurements on a recurring basis | Pension benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 1,158,000 | $ 920,000 | |
Fair value measurements on a recurring basis | Pension benefits | Non-U.S. Equity Funds | |||
Fair value measurements on a recurring basis | |||
Redemption frequency, daily | 60.00% | 32.00% | |
Redemption frequency, monthly | 40.00% | 68.00% | |
Fair value measurements on a recurring basis | Pension benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 598,000 | $ 518,000 | |
Fair value measurements on a recurring basis | Pension benefits | Cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 4,000 | 5,000 | |
Fair value measurements on a recurring basis | Other benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 201,000 | 174,000 | |
Fair value measurements on a recurring basis | Other benefits | Total, excluding cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 201,000 | 173,000 | |
Fair value measurements on a recurring basis | Other benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 141,000 | $ 117,000 | |
Fair value measurements on a recurring basis | Other benefits | Non-U.S. Equity Funds | |||
Fair value measurements on a recurring basis | |||
Redemption frequency, daily | 59.00% | 27.00% | |
Redemption frequency, monthly | 41.00% | 73.00% | |
Fair value measurements on a recurring basis | Other benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 56,000 | $ 51,000 | |
Fair value measurements on a recurring basis | Other benefits | Cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 1,000 | |
Fair value measurements on a recurring basis | Fair Value, Inputs, Level 1, 2 and 3 | Pension benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 470,000 | 507,000 | |
Fair value measurements on a recurring basis | Fair Value, Inputs, Level 1, 2 and 3 | Pension benefits | Equity index and exchange-traded funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 610,000 | 348,000 | |
Fair value measurements on a recurring basis | Fair Value, Inputs, Level 1, 2 and 3 | Pension benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 353,000 | 310,000 | |
Fair value measurements on a recurring basis | Fair Value, Inputs, Level 1, 2 and 3 | Other benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 61,000 | 65,000 | |
Fair value measurements on a recurring basis | Fair Value, Inputs, Level 1, 2 and 3 | Other benefits | Equity index and exchange-traded funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 69,000 | 42,000 | |
Fair value measurements on a recurring basis | Fair Value, Inputs, Level 1, 2 and 3 | Other benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 52,000 | 47,000 | |
Fair value measurements on a recurring basis | Level 1 | Pension benefits | Total, excluding cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 1,203,000 | 978,000 | |
Fair value measurements on a recurring basis | Level 1 | Pension benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 1,080,000 | 855,000 | |
Fair value measurements on a recurring basis | Level 1 | Pension benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 470,000 | 507,000 | |
Fair value measurements on a recurring basis | Level 1 | Pension benefits | Equity index and exchange-traded funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 610,000 | 348,000 | |
Fair value measurements on a recurring basis | Level 1 | Pension benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 123,000 | 123,000 | |
Fair value measurements on a recurring basis | Level 1 | Other benefits | Total, excluding cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 179,000 | 152,000 | |
Fair value measurements on a recurring basis | Level 1 | Other benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 130,000 | 107,000 | |
Fair value measurements on a recurring basis | Level 1 | Other benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 61,000 | 65,000 | |
Fair value measurements on a recurring basis | Level 1 | Other benefits | Equity index and exchange-traded funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 69,000 | 42,000 | |
Fair value measurements on a recurring basis | Level 1 | Other benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 49,000 | 45,000 | |
Fair value measurements on a recurring basis | Level 2 | Pension benefits | Total, excluding cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 230,000 | 187,000 | |
Fair value measurements on a recurring basis | Level 2 | Pension benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Pension benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Pension benefits | Equity index and exchange-traded funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Pension benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 230,000 | 187,000 | |
Fair value measurements on a recurring basis | Level 2 | Other benefits | Total, excluding cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 2,000 | 2,000 | |
Fair value measurements on a recurring basis | Level 2 | Other benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Other benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Other benefits | Equity index and exchange-traded funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Other benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 2,000 | 2,000 | |
Fair value measurements on a recurring basis | Level 3 | Pension benefits | Total, excluding cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Pension benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Pension benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Pension benefits | Equity index and exchange-traded funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Pension benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Other benefits | Total, excluding cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Other benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Other benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Other benefits | Equity index and exchange-traded funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Other benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 362,000 | 309,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 78,000 | 65,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Non-U.S. Equity Funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 78,000 | $ 65,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Non-U.S. Equity Funds | Minimum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 5 days | 5 days | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Non-U.S. Equity Funds | Maximum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 30 days | 30 days | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 245,000 | $ 208,000 | |
Redemption notice period (in days) | 15 days | 15 days | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Cash equivalents | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 39,000 | $ 36,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Cash equivalents | Minimum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 0 days | 0 days | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Cash equivalents | Maximum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 1 day | 1 day | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 19,000 | $ 19,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 11,000 | 10,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Non-U.S. Equity Funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 11,000 | $ 10,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Non-U.S. Equity Funds | Minimum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 5 days | 5 days | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Non-U.S. Equity Funds | Maximum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 30 days | 30 days | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 4,000 | $ 4,000 | |
Redemption notice period (in days) | 15 days | 10 days | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Cash equivalents | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 4,000 | $ 5,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Cash equivalents | Minimum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 0 days | 0 days | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Cash equivalents | Maximum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 1 day | 1 day |
Retirement benefits - Weighted
Retirement benefits - Weighted Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Benefit obligation | |||
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Net periodic pension/benefit cost (years ended) | |||
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Pension benefits | |||
Benefit obligation | |||
Discount rate | 3.61% | 4.31% | 3.74% |
Net periodic pension/benefit cost (years ended) | |||
Discount rate | 4.31% | 3.74% | 4.26% |
Expected return on plan assets | 7.25% | 7.50% | 7.50% |
Pension benefits | American Savings Bank (ASB) | |||
Net periodic pension/benefit cost (years ended) | |||
Expected return on plan assets | 4.51% | 3.94% | 4.46% |
Other benefits | |||
Benefit obligation | |||
Discount rate | 3.52% | 4.34% | 3.72% |
Net periodic pension/benefit cost (years ended) | |||
Discount rate | 4.34% | 3.72% | 4.22% |
Expected return on plan assets | 7.25% | 7.50% | 7.50% |
Retirement benefits - Component
Retirement benefits - Components of NPPC and NPBC (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension benefits | |||
Defined benefit plans | |||
Service cost | $ 62,135 | $ 68,987 | $ 64,906 |
Interest cost | 84,267 | 77,374 | 81,185 |
Expected return on plan assets | (111,989) | (108,953) | (102,745) |
Amortization of net prior service gain | (42) | (42) | (55) |
Amortization of net actuarial losses | 15,479 | 30,084 | 26,496 |
Net periodic pension/benefit cost | 49,850 | 67,450 | 69,787 |
Impact of PUC D&Os | 48,143 | 25,828 | (18,004) |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 97,993 | 93,278 | 51,783 |
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined benefit plans | |||
Service cost | 60,461 | 67,359 | 63,059 |
Interest cost | 77,851 | 71,294 | 74,632 |
Expected return on plan assets | (104,632) | (102,368) | (95,892) |
Amortization of net prior service gain | 7 | 8 | 8 |
Amortization of net actuarial losses | 14,658 | 27,302 | 24,392 |
Net periodic pension/benefit cost | 48,345 | 63,595 | 66,199 |
Impact of PUC D&Os | 48,143 | 25,828 | (18,004) |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 96,488 | 89,423 | 48,195 |
Other benefits | |||
Defined benefit plans | |||
Service cost | 2,209 | 2,721 | 3,374 |
Interest cost | 8,004 | 7,933 | 9,453 |
Expected return on plan assets | (12,356) | (12,908) | (12,326) |
Amortization of net prior service gain | (1,806) | (1,805) | (1,793) |
Amortization of net actuarial losses | (13) | 95 | 1,130 |
Net periodic pension/benefit cost | (3,962) | (3,964) | (162) |
Impact of PUC D&Os | 3,258 | 3,842 | 1,211 |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | (704) | (122) | 1,049 |
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined benefit plans | |||
Service cost | 2,191 | 2,704 | 3,353 |
Interest cost | 7,673 | 7,628 | 9,115 |
Expected return on plan assets | (12,180) | (12,713) | (12,147) |
Amortization of net prior service gain | (1,803) | (1,803) | (1,804) |
Amortization of net actuarial losses | 0 | 98 | 1,102 |
Net periodic pension/benefit cost | (4,119) | (4,086) | (381) |
Impact of PUC D&Os | 3,258 | 3,842 | 1,211 |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | $ (861) | $ (244) | $ 830 |
Retirement benefits - ABO and P
Retirement benefits - ABO and PBO in Excess of Plan Assets (Details) - Pension benefits - USD ($) $ in Billions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plans - ABOs | $ 2 | $ 1.7 |
Defined benefit plans with ABO in excess of plan assets | ||
ABOs | 1.9 | 1.6 |
Fair value of plan assets | 1.7 | 1.4 |
Defined benefit plans with PBOs in excess of plan assets | ||
PBOs | 2.2 | 1.9 |
Fair value of plan assets | 1.7 | 1.4 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plans - ABOs | 1.8 | 1.6 |
Defined benefit plans with ABO in excess of plan assets | ||
ABOs | 1.8 | 1.6 |
Fair value of plan assets | 1.6 | 1.3 |
Defined benefit plans with PBOs in excess of plan assets | ||
PBOs | 2.1 | 1.8 |
Fair value of plan assets | $ 1.6 | $ 1.3 |
Share-based compensation - Addi
Share-based compensation - Additional Information (Details) $ in Millions | Jun. 26, 2019shares | Mar. 01, 2014shares | Dec. 31, 2019USD ($)incrementshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Share-based compensation | |||||
Share-based compensation expense | $ 10 | $ 7.8 | $ 5.4 | ||
Income tax benefit | $ 1.4 | 1.1 | 1.9 | ||
Long-term incentive plan (LTIP) | |||||
Share-based compensation | |||||
Performance period | 3 years | ||||
Exception to forfeiture, minimum requisite service period | 12 months | ||||
Payout low end of range | 0.00% | ||||
Payout high end of range | 200.00% | ||||
Restricted stock units | |||||
Share-based compensation | |||||
Fair value of vested stock | $ 3.2 | 2.7 | 3.5 | ||
Income tax benefit | 0.5 | $ 0.4 | 1.1 | ||
Unrecognized compensation cost | $ 4.8 | ||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 2 years 6 months | ||||
LTIP linked to TRS | |||||
Share-based compensation | |||||
Fair value of vested stock | 1.9 | ||||
Income tax benefit | 0.7 | ||||
Unrecognized compensation cost | $ 1.4 | ||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 1 year 6 months | ||||
LTIP awards linked to other performance conditions | |||||
Share-based compensation | |||||
Fair value of vested stock | 4.2 | ||||
Income tax benefit | $ 1.6 | ||||
Unrecognized compensation cost | $ 5.1 | ||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 1 year 6 months | ||||
Equity and Incentive Plan (EIP) | |||||
Share-based compensation | |||||
Additional shares available for issuance | shares | 1,500,000 | ||||
Shares remaining available for future issuance | shares | 3,200,000 | ||||
Shares that can be issued upon vesting of outstanding units and achievement of performance goals | shares | 700,000 | ||||
Equity and Incentive Plan (EIP) | Restricted shares | |||||
Share-based compensation | |||||
The number of equal annual increments for which the awards become unrestricted (in installments) | increment | 4 | ||||
Nonemployee Director Stock Plan | |||||
Share-based compensation | |||||
Additional shares available for issuance | shares | 300,000 | ||||
Shares remaining available for future issuance | shares | 310,263 |
Share-based compensation - Rela
Share-based compensation - Related Income Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 10 | $ 7.8 | $ 5.4 |
Income tax benefit | 1.4 | 1.1 | 1.9 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 3.2 | 2.7 | 1.9 |
Income tax benefit | $ 0.6 | $ 0.5 | $ 0.7 |
Share-based compensation - The
Share-based compensation - The 2011 Director Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit | $ 1.4 | $ 1.1 | $ 1.9 |
Common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 36,344 | 38,821 | 35,770 |
Fair value of vested stock | $ 1.6 | $ 1.3 | $ 1.2 |
Income tax benefit | $ 0.4 | $ 0.3 | $ 0.5 |
Share-based compensation - Rest
Share-based compensation - Restricted Stock Units (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation, Restricted Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 200,358 | 197,047 | 220,683 |
Granted (in shares) | 96,565 | 93,853 | 97,873 |
Vested (in shares) | (76,813) | (75,683) | (92,147) |
Forfeited (in shares) | (12,469) | (14,859) | (29,362) |
Outstanding, end of period (in shares) | 207,641 | 200,358 | 197,047 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning of period (in dollars per share) | $ 33.05 | $ 31.53 | $ 29.57 |
Granted (in dollars per share) | 37.82 | 34.12 | 33.47 |
Vested (in dollars per share) | 32.61 | 30.56 | 28.88 |
Forfeited (in dollars per share) | 34.20 | 32.35 | 31.57 |
Outstanding, end of period (in dollars per share) | $ 35.36 | $ 33.05 | $ 31.53 |
Total weighted-average grant-date fair value | $ 3.7 | $ 3.2 | $ 3.3 |
Share-based compensation - LTIP
Share-based compensation - LTIP Linked to TRS (Details) - LTIP linked to TRS - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation, Restricted Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 65,578 | 32,904 | 83,106 |
Granted (in shares) | 35,215 | 37,832 | 37,204 |
Vested (issued or unissued and cancelled) (in shares) | 0 | 0 | (83,106) |
Forfeited (in shares) | (4,391) | (5,158) | (4,300) |
Outstanding, end of period (in shares) | 96,402 | 65,578 | 32,904 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning of period (in dollars per share) | $ 38.81 | $ 39.51 | $ 22.95 |
Granted (in dollars per share) | 41.07 | 38.21 | 39.51 |
Vested (issued or unissued and cancelled) (in dollars per share) | 0 | 0 | 22.95 |
Forfeited (in dollars per share) | 39.19 | 38.84 | 39.51 |
Outstanding, end of period (in dollars per share) | $ 39.62 | $ 38.81 | $ 39.51 |
Total weighted-average grant-date fair value | $ 1.4 | $ 1.4 | $ 1.5 |
Share-based compensation - Assu
Share-based compensation - Assumptions to Determine the Fair Value of LTIP Awards Linked to TRS (Details) - LTIP linked to TRS - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.48% | 2.29% | 1.46% |
Expected life (in years) | 3 years | 3 years | 3 years |
Expected volatility | 15.80% | 17.00% | 20.10% |
Range of expected volatility for Peer Group, minimum | 15.00% | 15.10% | 15.40% |
Range of expected volatility for Peer Group, maximum | 73.20% | 26.20% | 26.00% |
Grant date fair value (in dollars per share) | $ 41.07 | $ 38.20 | $ 39.51 |
Share-based compensation - LT_2
Share-based compensation - LTIP Awards Linked To Other Performance Conditions (Details) - LTIP awards linked to other performance conditions - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation, Restricted Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 276,169 | 131,616 | 109,816 |
Granted (in shares) | 140,855 | 151,328 | 148,818 |
Vested (in shares) | 0 | 0 | (109,816) |
Increased above target (cancelled) (in shares) | 4,314 | 13,858 | 0 |
Forfeited (in shares) | (17,570) | (20,633) | (17,202) |
Outstanding, end of period (in shares) | 403,768 | 276,169 | 131,616 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning of period (in dollars per share) | $ 33.80 | $ 33.47 | $ 25.18 |
Granted (in dollars per share) | 37.78 | 34.12 | 33.47 |
Vested (in dollars per share) | 0 | 0 | 25.18 |
Increased above target (cancelled) (in dollars per share) | 33.53 | 33.49 | 0 |
Forfeited (in dollars per share) | 34.66 | 33.80 | 33.48 |
Outstanding, end of period (in dollars per share) | $ 35.15 | $ 33.80 | $ 33.47 |
Total weighted-average grant-date fair value | $ 5.3 | $ 5.2 | $ 5 |
Income taxes - Components of In
Income taxes - Components of Income Taxes Attributable to Net Income for Common Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Federal | |||
Current | $ 28,736 | $ 42,903 | $ 61,534 |
Deferred | (4,353) | (6,099) | 33,967 |
Deferred tax credits, net | 13,410 | (12) | (20) |
Federal taxes | 37,793 | 36,792 | 95,481 |
State | |||
Current | 10,472 | 17,361 | 10,076 |
Deferred | (10,732) | (3,269) | 3,868 |
Deferred tax credits, net | 14,104 | (87) | (32) |
State taxes | 13,844 | 14,005 | 13,912 |
Federal and state taxes | 51,637 | 50,797 | 109,393 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Federal | |||
Current | 21,751 | 29,649 | 36,267 |
Deferred | (7,793) | (5,245) | 35,229 |
Deferred tax credits, net | 13,155 | (12) | (20) |
Federal taxes | 27,113 | 24,392 | 71,476 |
State | |||
Current | 5,579 | 13,210 | 8,947 |
Deferred | (8,491) | (2,737) | 2,808 |
Deferred tax credits, net | 14,104 | (87) | (32) |
State taxes | 11,192 | 10,386 | 11,723 |
Federal and state taxes | $ 38,305 | $ 34,778 | $ 83,199 |
Income taxes - Income Tax Recon
Income taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense (Benefit) [Line Items] | |||
Amount at the federal statutory income tax rate | $ 56,996 | $ 53,437 | $ 96,796 |
Increase (decrease) resulting from: | |||
State income taxes, net of federal income tax benefit | 11,658 | 11,832 | 9,789 |
Net deferred tax asset (liability) adjustment related to the Tax Act | (9,255) | (9,540) | 13,420 |
Other, net | (7,762) | (4,932) | (10,612) |
Federal and state taxes | $ 51,637 | $ 50,797 | $ 109,393 |
Effective income tax rate | 19.00% | 20.00% | 39.60% |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Income Tax Expense (Benefit) [Line Items] | |||
Amount at the federal statutory income tax rate | $ 41,399 | $ 37,889 | $ 71,801 |
Increase (decrease) resulting from: | |||
State income taxes, net of federal income tax benefit | 8,703 | 8,080 | 7,584 |
Net deferred tax asset (liability) adjustment related to the Tax Act | (9,255) | (9,285) | 9,168 |
Other, net | (2,542) | (1,906) | (5,354) |
Federal and state taxes | $ 38,305 | $ 34,778 | $ 83,199 |
Effective income tax rate | 19.40% | 19.30% | 40.60% |
Income taxes - Deferred Tax Ass
Income taxes - Deferred Tax Assets and Liabilities Due to Book/Tax Differences (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Regulatory liabilities, excluding amounts attributable to property, plant and equipment | $ 100,427 | $ 104,868 |
Operating lease liabilities | 51,573 | |
Allowance for bad debts | 14,858 | 14,647 |
Other | 54,028 | 46,036 |
Total deferred tax assets | 220,886 | 165,551 |
Deferred tax liabilities | ||
Property, plant and equipment related | 464,312 | 437,644 |
Operating lease right-of-use assets | 51,542 | |
Regulatory assets, excluding amounts attributable to property, plant and equipment | 33,897 | 37,345 |
Deferred RAM and RBA revenues | 0 | 11,278 |
Retirement benefits | 9,684 | 20,173 |
Other | 40,776 | 31,629 |
Total deferred tax liabilities | 600,211 | 538,069 |
Net deferred income tax liability | 379,325 | 372,518 |
Deferred tax assets, tax credit carryforwards | 8,700 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Deferred tax assets | ||
Regulatory liabilities, excluding amounts attributable to property, plant and equipment | 100,427 | 104,868 |
Operating lease liabilities | 45,608 | |
Allowance for bad debts | 560 | 659 |
Other | 41,181 | 26,522 |
Total deferred tax assets | 187,776 | 132,049 |
Deferred tax liabilities | ||
Property, plant and equipment related | 458,349 | 434,831 |
Operating lease right-of-use assets | 45,608 | |
Regulatory assets, excluding amounts attributable to property, plant and equipment | 33,897 | 37,345 |
Deferred RAM and RBA revenues | 0 | 11,278 |
Retirement benefits | 13,072 | 25,430 |
Other | 14,001 | 6,362 |
Total deferred tax liabilities | 564,927 | 515,246 |
Net deferred income tax liability | 377,151 | $ 383,197 |
Deferred tax assets, tax credit carryforwards | 6,700 | |
State and Local Jurisdiction | ||
Deferred tax liabilities | ||
Tax credit carryforward | 11,700 | |
State and Local Jurisdiction | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Deferred tax liabilities | ||
Tax credit carryforward | $ 9,000 |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense (Benefit) [Line Items] | |||
Deferred tax assets, valuation allowance | $ 0 | $ 0 | |
Unrecognized tax benefits that would impact effective tax rate | 500,000 | 500,000 | |
Credit adjustments to interest expense on income taxes | 100,000 | (100,000) | $ 200,000 |
Amount of accrued interest related to uncertain tax positions | $ 600,000 | 400,000 | |
Tax cuts and jobs act, net tax expense | $ 13,400,000 | ||
Tax cuts and jobs act, measurement period adjustment, decrease in DTL | 13,900,000 | ||
Tax cuts and jobs act, measurement period adjustment, income tax benefit | 5,500,000 | ||
Tax cust and jobs act, increase in regulatory liabilities | $ 11,300,000 | ||
Effective income tax rate, before tax act adjustments | 22.10% | ||
Effective income tax rate | 19.00% | 20.00% | 39.60% |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Income Tax Expense (Benefit) [Line Items] | |||
Unrecognized tax benefits that would impact effective tax rate | $ 0 | $ 0 | |
Credit adjustments to interest expense on income taxes | 100,000 | 100,000 | $ 100,000 |
Amount of accrued interest related to uncertain tax positions | $ 400,000 | 300,000 | |
Tax cuts and jobs act, net tax expense | $ 9,200,000 | ||
Tax cuts and jobs act, measurement period adjustment, decrease in DTL | 13,600,000 | ||
Tax cuts and jobs act, measurement period adjustment, income tax benefit | $ 5,200,000 | ||
Effective income tax rate, before tax act adjustments | 22.20% | ||
Effective income tax rate | 19.40% | 19.30% | 40.60% |
Income taxes - Changes in Unrec
Income taxes - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in total unrecognized tax benefits | |||
Unrecognized tax benefits, at the beginning of the period | $ 2.1 | $ 4 | $ 3.8 |
Additions based on tax positions taken during the year | 0.5 | 0.3 | 0.9 |
Reductions based on tax positions taken during the year | 0 | 0 | (0.2) |
Additions for tax positions of prior years | 0.1 | 0.1 | 0 |
Reductions for tax positions of prior years | (0.2) | (0.1) | (0.5) |
Lapses of statute of limitations | (0.3) | (2.2) | 0 |
Unrecognized tax benefits, at the end of the period | 2.2 | 2.1 | 4 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Changes in total unrecognized tax benefits | |||
Unrecognized tax benefits, at the beginning of the period | 1.6 | 3.5 | 3.8 |
Additions based on tax positions taken during the year | 0.5 | 0.3 | 0.4 |
Reductions based on tax positions taken during the year | 0 | 0 | (0.2) |
Additions for tax positions of prior years | 0.1 | 0.1 | 0 |
Reductions for tax positions of prior years | (0.2) | (0.1) | (0.5) |
Lapses of statute of limitations | (0.3) | (2.2) | 0 |
Unrecognized tax benefits, at the end of the period | $ 1.7 | $ 1.6 | $ 3.5 |
Cash flows (Details)
Cash flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental disclosures of cash flow information | |||
Interest paid to non-affiliates, net of amounts capitalized | $ 107,000 | $ 102,000 | $ 83,000 |
Income taxes paid (including refundable credits) | 56,000 | 72,000 | 55,000 |
Income taxes refunded (including refundable credits) | 4,000 | 34,000 | 1,000 |
Supplemental disclosures of noncash activities | |||
Unpaid invoices and accruals for capital expenditures (investing), Balance, end of period | 64,000 | 59,000 | 38,000 |
Loans transferred from held for investment to held for sale (investing) | 0 | 1,000 | 41,000 |
Common stock issued (gross) for director and executive/management compensation (financing) | 5,000 | 4,000 | 11,000 |
Obligations to fund low income housing investments, net (investing) | 11,000 | 12,000 | 13,000 |
Transfer of retail repurchase agreements to deposit liabilities (financing) | 0 | 102,000 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Supplemental disclosures of cash flow information | |||
Interest paid to non-affiliates, net of amounts capitalized | 68,000 | 73,000 | 63,000 |
Income taxes paid (including refundable credits) | 55,000 | 64,000 | 26,000 |
Income taxes refunded (including refundable credits) | 4,000 | 31,000 | 0 |
Supplemental disclosures of noncash activities | |||
Unpaid invoices and accruals for capital expenditures (investing), Balance, end of period | 62,000 | 44,000 | 38,000 |
Estimated fair value of noncash contributions in aid of construction (investing) | 9,000 | 14,000 | 18,000 |
Acquisition of Hawaiian Telcom’s interest in joint poles (investing) | $ 0 | $ 48 | $ 0 |
Regulatory restrictions on ne_2
Regulatory restrictions on net assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Regulatory restrictions on net assets | ||||
Distribution restrictions, percent of earnings in current year and 5 preceding years if capitalization rate is less than 35% | 80.00% | |||
Total capitalization rate of HEI's electric utility subsidiaries | 56.00% | |||
Common stock equity | $ 2,280,260 | $ 2,162,280 | $ 2,097,386 | $ 2,066,753 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Regulatory restrictions on net assets | ||||
Restrictions on transfer of net assets to the parent in the form of cash dividends, loans and advances | 825,000 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Regulatory restrictions on net assets | ||||
Common stock equity | 2,047,352 | 1,957,641 | $ 1,845,283 | $ 1,799,787 |
American Savings Bank (ASB) | ||||
Regulatory restrictions on net assets | ||||
Common stock equity | 699,051 | $ 634,389 | ||
Restrictions on transfer of net assets to the parent in the form of cash dividends, loans and advances | $ 487,000 |
Significant group concentrati_2
Significant group concentrations of credit risk (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Percentage of benchmark loan to appraisal ratio in excess of which mortgage insurance is required | 80.00% |
Fair value measurements - Fair
Fair value measurements - Fair Value Hierarchy of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Available-for-sale investment securities | $ 1,232,826 | $ 1,388,533 |
Held-to-maturity investment securities | 143,467 | 142,057 |
Financial liabilities | ||
Short-term borrowings—other than bank | 185,710 | 73,992 |
Other bank borrowings | 115,110 | 110,040 |
Carrying or notional amount | ||
Financial assets | ||
Available-for-sale investment securities | 1,232,826 | 1,388,533 |
Held-to-maturity investment securities | 139,451 | 141,875 |
Stock in Federal Home Loan Bank | 8,434 | 9,958 |
Loans, net | 5,080,107 | 4,792,707 |
Mortgage servicing rights | 9,101 | 8,062 |
Derivative assets | 25,179 | 10,180 |
Financial liabilities | ||
Deposit liabilities | 769,825 | 827,841 |
Short-term borrowings—other than bank | 185,710 | 73,992 |
Other bank borrowings | 115,110 | 110,040 |
Long-term debt, net—other than bank | 1,964,365 | 1,879,641 |
Derivative liabilities | 51,375 | 34,132 |
Carrying or notional amount | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net—other than bank | 1,497,667 | 1,418,802 |
Short-term borrowings | 88,987 | 25,000 |
Estimated fair value | ||
Financial assets | ||
Available-for-sale investment securities | 1,232,826 | 1,388,533 |
Held-to-maturity investment securities | 143,467 | 142,057 |
Stock in Federal Home Loan Bank | 8,434 | 9,958 |
Loans, net | 5,157,537 | 4,802,053 |
Mortgage servicing rights | 12,379 | 13,618 |
Derivative assets | 300 | 91 |
Financial liabilities | ||
Deposit liabilities | 765,976 | 817,667 |
Short-term borrowings—other than bank | 185,710 | 73,992 |
Other bank borrowings | 115,107 | 110,037 |
Long-term debt, net—other than bank | 2,156,927 | 1,904,261 |
Derivative liabilities | 2,218 | 630 |
Estimated fair value | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net—other than bank | 1,670,189 | 1,443,968 |
Short-term borrowings | 88,987 | 25,000 |
Estimated fair value | Level 1 | ||
Financial assets | ||
Available-for-sale investment securities | 0 | 0 |
Held-to-maturity investment securities | 0 | 0 |
Stock in Federal Home Loan Bank | 0 | 0 |
Loans, net | 0 | 0 |
Mortgage servicing rights | 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—other than bank | 0 | |
Derivative liabilities | 33 | 34 |
Estimated fair value | Level 1 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net—other than bank | 0 | 0 |
Short-term borrowings | 0 | 0 |
Estimated fair value | Level 2 | ||
Financial assets | ||
Available-for-sale investment securities | 1,204,229 | 1,364,897 |
Held-to-maturity investment securities | 143,467 | 142,057 |
Stock in Federal Home Loan Bank | 8,434 | 9,958 |
Loans, net | 12,295 | 1,809 |
Mortgage servicing rights | 0 | 0 |
Derivative assets | 300 | 91 |
Financial liabilities | ||
Deposit liabilities | 765,976 | 817,667 |
Short-term borrowings—other than bank | 185,710 | 73,992 |
Other bank borrowings | 115,107 | 110,037 |
Long-term debt, net—other than bank | 2,156,927 | 1,904,261 |
Derivative liabilities | 2,185 | 596 |
Estimated fair value | Level 2 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net—other than bank | 1,670,189 | 1,443,968 |
Short-term borrowings | 88,987 | 25,000 |
Estimated fair value | Level 3 | ||
Financial assets | ||
Available-for-sale investment securities | 28,597 | 23,636 |
Held-to-maturity investment securities | 0 | 0 |
Stock in Federal Home Loan Bank | 0 | 0 |
Loans, net | 5,145,242 | 4,800,244 |
Mortgage servicing rights | 12,379 | 13,618 |
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—other than bank | 0 | |
Derivative liabilities | 0 | 0 |
Estimated fair value | Level 3 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net—other than bank | 0 | 0 |
Short-term borrowings | $ 0 | $ 0 |
Fair value measurements - Fai_2
Fair value measurements - Fair Value Measurements on a Recurring Basis (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | $ 1,232,826 | $ 1,388,533 |
Discount rate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Mortgage revenue bonds, measurement input | 0.0341 | |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | $ 1,026,385 | 1,161,416 |
U.S. Treasury and federal agency obligations | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 117,787 | 154,349 |
Mortgage revenue bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 28,597 | 23,636 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, January 1 | 23,636 | 15,427 |
Principal payments received | 0 | 0 |
Purchases | 4,961 | 8,209 |
Unrealized gain (loss) included in other comprehensive income | 0 | 0 |
Balance, December 31 | 28,597 | 23,636 |
Fair value measurements on a recurring basis | Level 1 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 33 | 34 |
Fair value measurements on a recurring basis | Level 1 | Bank | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | Interest Rate Lock Commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | Forward commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 33 | 34 |
Fair value measurements on a recurring basis | Level 1 | Bank | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | U.S. Treasury and federal agency obligations | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | Corporate bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | Mortgage revenue bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Other | Interest rate swap | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 2 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 300 | 91 |
Derivative liabilities | 2,185 | 596 |
Fair value measurements on a recurring basis | Level 2 | Bank | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 1,204,229 | 1,364,897 |
Fair value measurements on a recurring basis | Level 2 | Bank | Interest Rate Lock Commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 297 | 91 |
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 2 | Bank | Forward commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 3 | 0 |
Derivative liabilities | 12 | 9 |
Fair value measurements on a recurring basis | Level 2 | Bank | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 1,026,385 | 1,161,416 |
Fair value measurements on a recurring basis | Level 2 | Bank | U.S. Treasury and federal agency obligations | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 117,787 | 154,349 |
Fair value measurements on a recurring basis | Level 2 | Bank | Corporate bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 60,057 | 49,132 |
Fair value measurements on a recurring basis | Level 2 | Bank | Mortgage revenue bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 2 | Other | Interest rate swap | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative liabilities | 2,173 | 587 |
Fair value measurements on a recurring basis | Level 3 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 28,597 | 23,636 |
Fair value measurements on a recurring basis | Level 3 | Bank | Interest Rate Lock Commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | Forward commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | U.S. Treasury and federal agency obligations | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | Corporate bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | Mortgage revenue bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 28,597 | 23,636 |
Fair value measurements on a recurring basis | Level 3 | Other | Interest rate swap | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative liabilities | $ 0 | $ 0 |
Fair value measurements - Fai_3
Fair value measurements - Fair Value Measurements on a Nonrecurring Basis (Details) - Fair value measurements on a nonrecurring basis - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | $ 25 | $ 77 |
Real estate acquired in settlement of loans | 186 | |
Level 1 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 0 | 0 |
Real estate acquired in settlement of loans | 0 | |
Level 2 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 0 | 0 |
Real estate acquired in settlement of loans | 0 | |
Level 3 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | $ 25 | 77 |
Real estate acquired in settlement of loans | $ 186 |
Fair value measurements - Quant
Fair value measurements - Quantitative Information About Level 3 Fair Value Measurements (Details) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans | ||
Fair value measurements | ||
Fair value | $ 25 | $ 77 |
Home equity line of credit | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 77 | |
Selling cost | 7.00% | |
Residential loan | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 25 | |
Selling cost | 7.00% | |
Real estate acquired in settlement of loans | ||
Fair value measurements | ||
Fair value | $ 186 | |
Real estate acquired in settlement of loans | Fair value of property or collateral | ||
Fair value measurements | ||
Selling cost | 7.00% |
Quarterly information (unaudi_3
Quarterly information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenues | $ 725,966 | $ 771,535 | $ 715,485 | $ 661,615 | $ 761,650 | $ 768,048 | $ 685,277 | $ 645,874 | $ 2,874,601 | $ 2,860,849 | $ 2,555,625 |
Operating income | 100,795 | 97,308 | 72,634 | 77,937 | 84,604 | 98,064 | 78,799 | 71,889 | 348,674 | 333,356 | 346,233 |
Net income | 66,736 | 63,890 | 42,985 | 46,161 | 50,046 | 66,371 | 46,527 | 40,720 | 219,772 | 203,664 | 167,187 |
Net income for common stock | $ 66,263 | $ 63,419 | $ 42,512 | $ 45,688 | $ 49,573 | $ 65,900 | $ 46,054 | $ 40,247 | $ 217,882 | $ 201,774 | $ 165,297 |
Basic earnings per common share (in dollars per share) | $ 0.61 | $ 0.58 | $ 0.39 | $ 0.42 | $ 0.46 | $ 0.61 | $ 0.42 | $ 0.37 | $ 2 | $ 1.85 | $ 1.52 |
Diluted earnings per common share (in dollars per share) | 0.61 | 0.58 | 0.39 | 0.42 | 0.45 | 0.60 | 0.42 | 0.37 | 1.99 | 1.85 | 1.52 |
Dividends declared per common share (in dollars per share) | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.31 | $ 0.31 | $ 0.31 | $ 0.31 | $ 1.28 | $ 1.24 | $ 1.24 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenues | $ 645,333 | $ 688,330 | $ 633,784 | $ 578,495 | $ 680,563 | $ 687,409 | $ 608,126 | $ 570,427 | $ 2,545,942 | $ 2,546,525 | $ 2,257,566 |
Operating income | 70,331 | 71,793 | 55,694 | 56,560 | 61,112 | 74,036 | 55,144 | 51,369 | 254,378 | 241,661 | 263,524 |
Net income | 45,860 | 47,277 | 33,073 | 32,625 | 35,796 | 50,210 | 31,668 | 27,974 | 158,835 | 145,648 | 121,946 |
Net income for common stock | 45,361 | $ 46,779 | $ 32,574 | $ 32,126 | $ 35,297 | $ 49,712 | $ 31,169 | $ 27,475 | $ 156,840 | $ 143,653 | $ 119,951 |
ASB Hawaii, Inc. | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Gain on sale of properties | 10,800 | ||||||||||
Gain on the sale of properties included in net income | $ 7,900 | ||||||||||
Gain on the sale of properties, earnings per share basic and diluted (in dollars per share) | $ 0.07 | ||||||||||
Statutory income tax rate | 26.80% |
SCHEDULE I - CONDENSED FINANC_2
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Cash and cash equivalents | $ 196,813 | $ 169,208 | ||
Accounts receivable | 300,794 | 325,672 | ||
Property, plant and equipment, net | 5,109,628 | 4,830,118 | ||
Other assets and intercompany receivables | 649,885 | 530,364 | ||
Total assets | 13,745,251 | 13,104,051 | $ 12,534,160 | |
Liabilities | ||||
Accounts payable | 220,633 | 214,773 | ||
Long-term debt, net | 1,964,365 | 1,879,641 | ||
Other | 583,545 | 580,788 | ||
Total liabilities | 11,430,698 | 10,907,478 | ||
Shareholders' equity | ||||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 0 | 0 | ||
Common stock equity | 1,678,257 | 1,669,267 | ||
Retained earnings | 622,042 | 543,623 | ||
Accumulated other comprehensive loss | (20,039) | (50,610) | ||
Total shareholders’ equity | 2,280,260 | 2,162,280 | $ 2,097,386 | $ 2,066,753 |
Total capitalization and liabilities | $ 13,745,251 | $ 13,104,051 | ||
Preferred stock, authorized shares | 10,000,000 | 10,000,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Common stock, authorized shares | 200,000,000 | 200,000,000 | ||
Common stock, issued shares | 108,973,328 | 108,879,245 | ||
Common stock, outstanding shares | 108,973,328 | 108,879,245 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | $ 953 | $ 3,742 | ||
Accounts receivable | 779 | 2,604 | ||
Notes receivable from subsidiaries | 22,598 | 20,789 | ||
Property, plant and equipment, net | 2,931 | 3,456 | ||
Deferred income tax assets | 10,754 | 10,147 | ||
Other assets and intercompany receivables | 21,770 | 11,963 | ||
Investments in subsidiaries, at equity | 2,761,802 | 2,605,038 | ||
Total assets | 2,821,587 | 2,657,739 | ||
Liabilities | ||||
Accounts payable | 1,509 | 2,001 | ||
Interest payable | 3,041 | 3,476 | ||
Notes payable to subsidiaries | 0 | 34 | ||
Commercial paper | 96,723 | 48,992 | ||
Long-term debt, net | 399,064 | 398,874 | ||
Retirement benefits liability | 29,367 | 29,565 | ||
Other | 11,623 | 12,517 | ||
Total liabilities | 541,327 | 495,459 | ||
Shareholders' equity | ||||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 0 | 0 | ||
Common stock equity | 1,678,257 | 1,669,267 | ||
Retained earnings | 622,042 | 543,623 | ||
Accumulated other comprehensive loss | (20,039) | (50,610) | ||
Total shareholders’ equity | 2,280,260 | 2,162,280 | ||
Total capitalization and liabilities | $ 2,821,587 | $ 2,657,739 | ||
Preferred stock, authorized shares | 10,000,000 | 10,000,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Common stock, authorized shares | 200,000,000 | 200,000,000 | ||
Common stock, issued shares | 108,973,328 | 108,879,245 | ||
Common stock, outstanding shares | 108,973,328 | 108,879,245 |
SCHEDULE I - CONDENSED FINANC_3
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - STATEMENTS OF INCOME AND CHANGES IN SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||||||||||
Revenues | $ 2,622,025 | $ 2,614,831 | |||||||||
Expenses: | |||||||||||
Depreciation of property, plant and equipment | 229,858 | 214,036 | $ 200,658 | ||||||||
Total expenses | 2,525,927 | 2,527,493 | 2,209,392 | ||||||||
Retirement defined benefits expense—other than service costs | 2,806 | 5,962 | 7,942 | ||||||||
Interest expense | 109,339 | 104,216 | 91,128 | ||||||||
Income before income taxes | 271,409 | 254,461 | 276,580 | ||||||||
Income benefits | (51,637) | (50,797) | (109,393) | ||||||||
Net income (loss) | $ 66,736 | $ 63,890 | $ 42,985 | $ 46,161 | $ 50,046 | $ 66,371 | $ 46,527 | $ 40,720 | 219,772 | 203,664 | 167,187 |
Parent Company | |||||||||||
Revenues | |||||||||||
Revenues | 777 | 429 | 798 | ||||||||
Equity in net income of subsidiaries | 246,005 | 226,972 | 187,097 | ||||||||
Expenses: | |||||||||||
Operating, administrative and general | 19,195 | 19,515 | 16,578 | ||||||||
Depreciation of property, plant and equipment | 570 | 597 | 548 | ||||||||
Taxes, other than income taxes | 570 | 509 | 496 | ||||||||
Total expenses | 20,335 | 20,621 | 17,622 | ||||||||
Income before interest expense and income (taxes) benefits | 226,447 | 206,780 | 170,273 | ||||||||
Retirement defined benefits expense—other than service costs | 442 | 674 | 1,119 | ||||||||
Interest expense | 17,930 | 12,664 | 9,389 | ||||||||
Income before income taxes | 208,075 | 193,442 | 159,765 | ||||||||
Income benefits | 9,807 | 8,332 | 5,532 | ||||||||
Net income (loss) | $ 217,882 | $ 201,774 | $ 165,297 |
SCHEDULE I - CONDENSED FINANC_4
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net cash provided by operating activities | $ 512,470 | $ 499,312 | $ 420,441 |
Cash flows from investing activities | |||
Capital expenditures | (457,520) | (537,369) | (495,187) |
Other, net | 13,292 | 14,534 | 7,487 |
Net cash used in investing activities | (541,709) | (792,059) | (815,299) |
Cash flows from financing activities | |||
Net increase (decrease) in short-term borrowings with original maturities of three months or less | 86,718 | (18,999) | 67,992 |
Proceeds from issuance of short-term debt | 75,000 | 25,000 | 125,000 |
Repayment of short-term debt | (50,000) | (50,000) | (75,000) |
Proceeds from issuance of long-term debt | 289,349 | 250,000 | 532,325 |
Repayment of long-term debt and funds transferred for repayment of long-term debt | (287,285) | (53,887) | (465,000) |
Common stock dividends | (139,463) | (134,987) | (134,873) |
Other | (1,836) | (1,603) | (6,349) |
Net cash used in financing activities | 87,716 | 200,074 | 378,287 |
Net decrease in cash and equivalents | 58,477 | (92,673) | (16,571) |
Cash, cash equivalents and restricted cash, January 1 | 169,208 | 261,881 | 278,452 |
Cash, cash equivalents and restricted cash, December 31 | 227,685 | 169,208 | 261,881 |
Parent Company | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 131,120 | 135,470 | 99,600 |
Cash flows from investing activities | |||
Increase in note receivable from subsidiary | (1,187) | (20,596) | (70,000) |
Decrease in note receivable from subsidiary | 0 | 0 | 66,391 |
Capital expenditures | (47) | (143) | (317) |
Investments in subsidiaries | (38,935) | (71,970) | (22,353) |
Other, net | (1,001) | 140 | (177) |
Net cash used in investing activities | (41,170) | (92,569) | (26,456) |
Cash flows from financing activities | |||
Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less | 0 | (30) | 98 |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | 47,731 | (14,000) | 62,993 |
Proceeds from issuance of short-term debt | 0 | 0 | 125,000 |
Repayment of short-term debt | 0 | (50,000) | (75,000) |
Proceeds from issuance of long-term debt | 0 | 150,000 | 150,000 |
Repayment of long-term debt and funds transferred for repayment of long-term debt | 0 | 0 | (200,000) |
Withheld shares for employee taxes on vested share-based compensation | (997) | (996) | (3,828) |
Common stock dividends | (139,463) | (134,987) | (134,873) |
Other | (10) | (848) | (756) |
Net cash used in financing activities | (92,739) | (50,861) | (76,366) |
Net decrease in cash and equivalents | (2,789) | (7,960) | (3,222) |
Cash, cash equivalents and restricted cash, January 1 | 3,742 | 11,702 | 14,924 |
Cash, cash equivalents and restricted cash, December 31 | $ 953 | $ 3,742 | $ 11,702 |
SCHEDULE I - CONDENSED FINANC_5
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Less unamortized debt issuance costs | $ (2,350,000) | $ (2,599,000) | |
Long-term debt, net—other than bank | 1,964,365,000 | 1,879,641,000 | |
Aggregate principal payments, fiscal year maturity: | |||
2020 | 102,000,000 | ||
2021 | 54,000,000 | ||
2022 | 213,000,000 | ||
2023 | 154,000,000 | ||
2024 | 5,000,000 | ||
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Less unamortized debt issuance costs | (936,000) | (1,126,000) | |
Long-term debt, net—other than bank | 399,064,000 | 398,874,000 | |
Aggregate principal payments, fiscal year maturity: | |||
2020 | 0 | ||
2021 | 50,000,000 | ||
2022 | 150,000,000 | ||
2023 | 50,000,000 | ||
2024 | 0 | ||
Thereafter | 150,000,000 | ||
Cash dividends paid | 157,000,000 | 154,000,000 | $ 125,000,000 |
Parent Company | ASB Hawaii, Inc. | Consolidated subsidiary | |||
Aggregate principal payments, fiscal year maturity: | |||
Accounts receivable reduction | 2,300,000 | 2,300,000 | 2,800,000 |
HEI notes payable increase to ASHI | 2,300,000 | 2,300,000 | 2,800,000 |
Parent Company | Hamakua Energy Partners, L.P. (HEP) | |||
Aggregate principal payments, fiscal year maturity: | |||
Notes receivable converted into equity | $ 3,600,000 | ||
Parent Company | Self Insured United States Longshore and Horbor Bond | |||
Aggregate principal payments, fiscal year maturity: | |||
Maximum undiscounted exposure | 600,000 | ||
Parent Company | Self Insured Automobile Bond | |||
Aggregate principal payments, fiscal year maturity: | |||
Maximum undiscounted exposure | 700,000 | ||
Parent Company | HEI loan 2.99%, due 2022 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 150,000,000 | 150,000,000 | |
Debt instrument, stated interest rate | 2.99% | ||
Parent Company | HEI 5.67% senior notes, due 2021 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 50,000,000 | 50,000,000 | |
Debt instrument, stated interest rate | 5.67% | ||
Parent Company | HEI 3.99% senior notes, due 2023 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 50,000,000 | 50,000,000 | |
Debt instrument, stated interest rate | 3.99% | ||
Parent Company | HEI 4.58% senior notes, due 2025 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 50,000,000 | 50,000,000 | |
Debt instrument, stated interest rate | 4.58% | ||
Parent Company | HEI 4.72% senior notes, due 2028 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 100,000,000 | $ 100,000,000 | |
Debt instrument, stated interest rate | 4.72% |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation and qualifying accounts | |||
Reclassifications of allowance from one customer account into long term assets | $ (4,934) | $ 841 | |
Allowance for uncollectible accounts – electric utility | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | $ 1,480 | 1,178 | 1,121 |
Charged to costs and expenses | 2,106 | 2,474 | 1,810 |
Charged to other accounts | 795 | (4,099) | 785 |
Deductions | 3,004 | (1,927) | 2,538 |
Balance at end of period | 1,377 | 1,480 | 1,178 |
Allowance for uncollectible interest – bank | Bank | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 373 | 367 | 1,834 |
Charged to costs and expenses | 0 | 0 | 0 |
Charged to other accounts | (99) | 6 | 0 |
Deductions | 0 | 0 | 1,467 |
Balance at end of period | 274 | 373 | 367 |
Allowance for losses for loans – bank | Bank | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 52,119 | 53,637 | 55,533 |
Charged to costs and expenses | 23,480 | 14,745 | 10,901 |
Charged to other accounts | 6,418 | 4,254 | 4,016 |
Deductions | 28,662 | 20,517 | 16,813 |
Balance at end of period | $ 53,355 | 52,119 | 53,637 |
Deferred tax valuation allowance – HEI | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | $ 0 | 38 | |
Charged to costs and expenses | 0 | ||
Charged to other accounts | 0 | ||
Deductions | 38 | ||
Balance at end of period | $ 0 |