Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 24, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-8503 | |
Entity Tax Identification Number | 99-0208097 | |
Entity Incorporation, State or Country Code | HI | |
Entity Registrant Name | HAWAIIAN ELECTRIC INDUSTRIES INC | |
Entity Central Index Key | 0000354707 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
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 each class | Common Stock, Without Par Value | |
Trading Symbol | HE | |
Security Exchange Name | NYSE | |
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 Common Stock, Shares Outstanding | 109,181,124 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Entity File Number | 1-4955 | |
Entity Tax Identification Number | 99-0040500 | |
Entity Incorporation, State or Country Code | HI | |
Entity Registrant Name | HAWAIIAN ELECTRIC COMPANY INC | |
Entity Central Index Key | 0000046207 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
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 | |
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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Total revenues | $ 608,945 | $ 715,485 | $ 1,286,131 | $ 1,377,100 |
Expenses | ||||
Total expenses | 537,389 | 642,851 | 1,154,873 | 1,226,529 |
Operating income (loss) | ||||
Total operating income | 71,556 | 72,634 | 131,258 | 150,571 |
Retirement defined benefits expense—other than service costs | (934) | (761) | (1,868) | (1,524) |
Interest expense, net—other than on deposit liabilities and other bank borrowings | (22,613) | (23,533) | (44,388) | (46,656) |
Allowance for borrowed funds used during construction | 752 | 1,179 | 1,440 | 2,257 |
Allowance for equity funds used during construction | 2,194 | 3,175 | 4,209 | 6,085 |
Gain on sale of investment securities, net | 9,275 | 0 | 9,275 | 0 |
Income before income taxes | 60,230 | 52,694 | 99,926 | 110,733 |
Income taxes | 10,870 | 9,709 | 16,673 | 21,587 |
Net income | 49,360 | 42,985 | 83,253 | 89,146 |
Preferred stock dividends of subsidiaries | 473 | 473 | 946 | 946 |
Net income for common stock | $ 48,887 | $ 42,512 | $ 82,307 | $ 88,200 |
Basic earnings per common share (in dollars per share) | $ 0.45 | $ 0.39 | $ 0.75 | $ 0.81 |
Diluted earnings per common share (in dollars per share) | $ 0.45 | $ 0.39 | $ 0.75 | $ 0.81 |
Weighted-average number of common shares outstanding (in shares) | 109,146 | 108,938 | 109,098 | 108,925 |
Net effect of potentially dilutive shares (in shares) | 159 | 317 | 276 | 399 |
Weighted-average shares assuming dilution (in shares) | 109,305 | 109,255 | 109,374 | 109,324 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Revenues | ||||
Total revenues | $ 534,215 | $ 633,784 | $ 1,131,657 | $ 1,212,279 |
Expenses | ||||
Fuel oil | 112,451 | 181,620 | 285,672 | 342,229 |
Purchased power | 136,838 | 162,854 | 276,654 | 297,299 |
Other operation and maintenance | 110,041 | 119,260 | 237,588 | 237,390 |
Depreciation | 55,696 | 53,913 | 111,546 | 107,860 |
Taxes, other than income taxes | 51,388 | 60,443 | 108,438 | 115,247 |
Total expenses | 466,414 | 578,090 | 1,019,898 | 1,100,025 |
Operating income (loss) | ||||
Total operating income | 67,801 | 55,694 | 111,759 | 112,254 |
Retirement defined benefits expense—other than service costs | (382) | (701) | (763) | (1,404) |
Allowance for borrowed funds used during construction | 752 | 1,179 | 1,440 | 2,257 |
Allowance for equity funds used during construction | 2,194 | 3,175 | 4,209 | 6,085 |
Interest expense and other charges, net | (17,338) | (18,530) | (33,932) | (36,516) |
Income before income taxes | 53,027 | 40,817 | 82,713 | 82,676 |
Income taxes | 10,199 | 7,744 | 15,481 | 16,978 |
Net income | 42,828 | 33,073 | 67,232 | 65,698 |
Preferred stock dividends of subsidiaries | 229 | 229 | 458 | 458 |
Net income attributable to Hawaiian Electric | 42,599 | 32,844 | 66,774 | 65,240 |
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 540 | 540 |
Net income for common stock | 42,329 | 32,574 | 66,234 | 64,700 |
Electric utility | ||||
Revenues | ||||
Total revenues | 534,215 | 633,784 | 1,131,657 | 1,212,279 |
Expenses | ||||
Total expenses | 466,414 | 578,090 | 1,019,898 | 1,100,025 |
Operating income (loss) | ||||
Total operating income | 67,801 | 55,694 | 111,759 | 112,254 |
Income before income taxes | 53,027 | 40,817 | 82,713 | 82,676 |
Income taxes | 10,199 | 7,744 | 15,481 | 16,978 |
Net income | 42,828 | 33,073 | 67,232 | 65,698 |
Preferred stock dividends of subsidiaries | 499 | 499 | 998 | 998 |
Net income for common stock | 42,329 | 32,574 | 66,234 | 64,700 |
Bank | ||||
Revenues | ||||
Total revenues | 74,714 | 81,687 | 154,452 | 164,739 |
Expenses | ||||
Total expenses | 66,221 | 60,435 | 126,556 | 117,365 |
Operating income (loss) | ||||
Total operating income | 8,493 | 21,252 | 27,896 | 47,374 |
Income before income taxes | 17,334 | 21,292 | 36,303 | 47,454 |
Income taxes | 3,320 | 4,276 | 6,528 | 9,599 |
Net income | 14,014 | 17,016 | 29,775 | 37,855 |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 |
Net income for common stock | 14,014 | 17,016 | 29,775 | 37,855 |
Other | ||||
Revenues | ||||
Total revenues | 16 | 14 | 22 | 82 |
Expenses | ||||
Total expenses | 4,754 | 4,326 | 8,419 | 9,139 |
Operating income (loss) | ||||
Total operating income | (4,738) | (4,312) | (8,397) | (9,057) |
Income before income taxes | (10,131) | (9,415) | (19,090) | (19,397) |
Income taxes | (2,649) | (2,311) | (5,336) | (4,990) |
Net income | (7,482) | (7,104) | (13,754) | (14,407) |
Preferred stock dividends of subsidiaries | (26) | (26) | (52) | (52) |
Net income for common stock | $ (7,456) | $ (7,078) | $ (13,702) | $ (14,355) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net income for common stock | $ 48,887 | $ 42,512 | $ 82,307 | $ 88,200 |
Net unrealized gains on available-for-sale investment securities: | ||||
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, net of taxes | 973 | 14,154 | 20,421 | 23,593 |
Reclassification adjustment for net realized gains included in net income, net of taxes | (1,638) | 0 | (1,638) | 0 |
Derivatives qualifying as cash flow hedges: | ||||
Unrealized interest rate hedging losses arising during the period, net of taxes | (198) | (660) | (1,982) | (1,063) |
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes | 5,690 | 2,503 | 11,396 | 5,006 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (5,159) | (2,298) | (10,317) | (4,596) |
Other comprehensive income (loss), net of taxes | (332) | 13,699 | 17,880 | 22,940 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 48,555 | 56,211 | 100,187 | 111,140 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Net income for common stock | 42,329 | 32,574 | 66,234 | 64,700 |
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes | 5,184 | 2,321 | 10,368 | 4,643 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (5,159) | (2,298) | (10,317) | (4,596) |
Other comprehensive income (loss), net of taxes | 25 | 23 | 51 | 47 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ 42,354 | $ 32,597 | $ 66,285 | $ 64,747 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, tax | $ 356 | $ 5,182 | $ 7,476 | $ 8,637 |
Reclassification adjustment for net realized gains included in net income, tax | (599) | 0 | (599) | 0 |
Unrealized interest rate hedging losses arising during the period, tax | (69) | (380) | (688) | (520) |
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax | 1,981 | 871 | 3,967 | 1,741 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, tax | (1,789) | (797) | (3,578) | (1,594) |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax | 1,798 | 805 | 3,596 | 1,610 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, tax | $ (1,789) | $ (797) | $ (3,578) | $ (1,594) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and Cash Equivalents, at Carrying Value | $ 574,482 | $ 196,813 |
Restricted Cash and Cash Equivalents | 29,376 | 30,872 |
Accounts receivable and unbilled revenues, net | 271,314 | 300,794 |
Available-for-sale investment securities, at fair value | 1,389,633 | 1,232,826 |
Held-to-maturity investment securities, at amortized cost | 124,623 | 139,451 |
Stock in Federal Home Loan Bank, at cost | 9,880 | 8,434 |
Loans held for investment, net | 5,356,510 | 5,067,821 |
Loans held for sale, at lower of cost or fair value | 37,143 | 12,286 |
Property, plant and equipment, net of accumulated depreciation | 5,181,427 | 5,109,628 |
Regulatory assets | 682,570 | 715,080 |
Other | 556,793 | 649,885 |
Goodwill | 82,190 | 82,190 |
Utility property, plant and equipment | ||
Total property, plant and equipment, net | 5,181,427 | 5,109,628 |
Current assets | ||
Cash and Cash Equivalents, at Carrying Value | 574,482 | 196,813 |
Other long-term assets | ||
Operating lease right-of-use assets | 184,759 | 199,171 |
Total assets | 14,480,700 | 13,745,251 |
Liabilities | ||
Accounts payable | 142,113 | 220,633 |
Interest and dividends payable | 24,396 | 24,941 |
Deposit liabilities | 7,029,952 | 6,271,902 |
Short-term borrowings—other than bank | 131,180 | 185,710 |
Other bank borrowings | 124,975 | 115,110 |
Long-term debt, net—other than bank | 2,070,224 | 1,964,365 |
Deferred income taxes | 368,834 | 379,324 |
Operating lease liabilities | 191,058 | 199,571 |
Regulatory liabilities | 977,780 | 972,310 |
Defined benefit pension and other postretirement benefit plans liability | 514,415 | 513,287 |
Other | 580,082 | 583,545 |
Total liabilities | 12,155,009 | 11,430,698 |
Capitalization | ||
Retained earnings | 616,941 | 622,042 |
Accumulated other comprehensive loss, net of tax benefits | (2,159) | (20,039) |
Total shareholders’ equity | 2,291,398 | 2,280,260 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies | ||
Current liabilities | ||
Interest and dividends payable | 24,396 | 24,941 |
Deferred credits and other liabilities | ||
Deferred income taxes | 368,834 | 379,324 |
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: 109,181,124 shares and 108,973,328 shares at June 30, 2020 and December 31, 2019, respectively | 1,676,616 | 1,678,257 |
Retained earnings | 616,941 | 622,042 |
Accumulated other comprehensive loss, net of tax benefits | (2,159) | (20,039) |
Total shareholders’ equity | 2,291,398 | 2,280,260 |
Total liabilities and shareholders’ equity | 14,480,700 | 13,745,251 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Assets | ||
Cash and Cash Equivalents, at Carrying Value | 63,995 | 11,022 |
Restricted Cash and Cash Equivalents | 29,376 | 30,872 |
Property, plant and equipment, net of accumulated depreciation | 4,868,346 | 4,801,977 |
Regulatory assets | 6,500 | |
Utility property, plant and equipment | ||
Land | 51,607 | 51,816 |
Plant and equipment | 7,353,841 | 7,240,288 |
Less accumulated depreciation | (2,758,544) | (2,690,157) |
Construction in progress | 214,487 | 193,074 |
Utility property, plant and equipment, net | 4,861,391 | 4,795,021 |
Nonutility property, plant and equipment, less accumulated depreciation | 6,955 | 6,956 |
Total property, plant and equipment, net | 4,868,346 | 4,801,977 |
Current assets | ||
Cash and Cash Equivalents, at Carrying Value | 63,995 | 11,022 |
Customer accounts receivable, net | 138,038 | 152,790 |
Accrued unbilled revenues, net | 100,601 | 117,227 |
Other accounts receivable, net | 10,415 | 11,568 |
Fuel oil stock, at average cost | 60,479 | 91,937 |
Materials and supplies, at average cost | 66,244 | 60,702 |
Prepayments and other | 37,929 | 116,980 |
Regulatory assets | 21,286 | 30,710 |
Total current assets | 528,363 | 623,808 |
Other long-term assets | ||
Operating lease right-of-use assets | 161,029 | 176,809 |
Regulatory assets | 661,284 | 684,370 |
Other | 112,985 | 101,718 |
Total other long-term assets | 935,298 | 962,897 |
Total assets | 6,332,007 | 6,388,682 |
Liabilities | ||
Interest and dividends payable | 20,659 | 20,728 |
Deferred income taxes | 371,052 | 377,150 |
Capitalization | ||
Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 17,048,783 shares at June 30, 2020 and December 31, 2019) | 113,678 | 113,678 |
Premium on capital stock | 714,824 | 714,824 |
Retained earnings | 1,232,795 | 1,220,129 |
Accumulated other comprehensive loss, net of tax benefits | (1,228) | (1,279) |
Total shareholders’ equity | 2,060,069 | 2,047,352 |
Long-term debt, net | 1,560,955 | 1,401,714 |
Total capitalization | 3,655,317 | 3,483,359 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies | ||
Current liabilities | ||
Current portion of operating lease liabilities | 64,534 | 63,707 |
Current portion of long-term debt | 14,000 | 95,953 |
Short-term borrowings from non-affiliates | 49,919 | 88,987 |
Accounts payable | 107,078 | 187,770 |
Interest and dividends payable | 20,659 | 20,728 |
Taxes accrued, including revenue taxes | 193,851 | 207,992 |
Regulatory liabilities | 26,067 | 30,724 |
Other | 71,691 | 67,305 |
Total current liabilities | 547,799 | 763,166 |
Deferred credits and other liabilities | ||
Operating lease liabilities | 102,570 | 113,400 |
Deferred income taxes | 371,052 | 377,150 |
Regulatory liabilities | 951,713 | 941,586 |
Unamortized tax credits | 115,006 | 117,868 |
Defined benefit pension and other postretirement benefit plans liability | 479,850 | 478,763 |
Other | 108,700 | 113,390 |
Total deferred credits and other liabilities | 2,128,891 | 2,142,157 |
Shareholders’ equity | ||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 34,293 | 34,293 |
Retained earnings | 1,232,795 | 1,220,129 |
Accumulated other comprehensive loss, net of tax benefits | (1,228) | (1,279) |
Total shareholders’ equity | 2,060,069 | 2,047,352 |
Total liabilities and shareholders’ equity | $ 6,332,007 | $ 6,388,682 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, plant and equipment, accumulated depreciation | $ 2,840,462 | $ 2,765,569 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, authorized shares (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued shares (in shares) | 109,181,124 | 108,973,328 |
Common stock, outstanding shares (in shares) | 109,181,124 | 108,973,328 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Nonutility property, plant and equipment, accumulated depreciation | $ 113 | $ 111 |
Common stock, par value (in dollars per share) | $ 6.67 | $ 6.67 |
Common stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Common stock, outstanding shares (in shares) | 17,048,783 | 17,048,783 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders' Equity and Common Stock Equity (unaudited) - USD ($) $ in Thousands | Total | Impact of ASU No. 2016-13 | As reported under ASU No. 2016-13 | Hawaiian Electric Company, Inc. and Subsidiaries | Common stock | Common stockAs reported under ASU No. 2016-13 | Common stockHawaiian Electric Company, Inc. and Subsidiaries | Premium on capital stockHawaiian Electric Company, Inc. and Subsidiaries | Retained Earnings | Retained EarningsImpact of ASU No. 2016-13 | Retained EarningsAs reported under ASU No. 2016-13 | Retained EarningsHawaiian Electric Company, Inc. and Subsidiaries | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss)As reported under ASU No. 2016-13 | Accumulated other comprehensive income (loss)Hawaiian Electric Company, Inc. and Subsidiaries |
Increase (decrease) in stockholders' equity | |||||||||||||||
Impact of adoption of ASU No. 2016-13 | $ 2,162,280 | $ 1,957,641 | $ 1,669,267 | $ 111,696 | $ 681,305 | $ 543,623 | $ 1,164,541 | $ (50,610) | $ 99 | ||||||
Beginning Balance at Dec. 31, 2018 | 2,162,280 | 1,957,641 | $ 1,669,267 | $ 111,696 | 681,305 | 543,623 | 1,164,541 | (50,610) | 99 | ||||||
Beginning Balance (in shares) at Dec. 31, 2018 | 108,879,000 | 16,751,000 | |||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Impact of adoption of ASU No. 2016-13 | 2,183,515 | 1,964,478 | $ 1,670,433 | $ 111,696 | 681,305 | 554,451 | 1,171,354 | (50,610) | 123 | ||||||
Net income for common stock | 45,688 | 32,126 | 45,688 | 32,126 | |||||||||||
Other comprehensive income (loss), net of tax (benefits) | 9,241 | 24 | 9,241 | 24 | |||||||||||
Share-based expenses and other, net (in shares) | 58,000 | ||||||||||||||
Share-based expenses and other, net | 1,166 | $ 1,166 | |||||||||||||
Common stock dividends | (34,860) | (25,313) | (34,860) | (25,313) | |||||||||||
Ending Balance at Mar. 31, 2019 | $ 2,183,515 | 1,964,478 | $ 1,670,433 | $ 111,696 | 681,305 | 554,451 | 1,171,354 | (41,369) | 123 | ||||||
Ending Balance (in shares) at Mar. 31, 2019 | 108,937,000 | 16,751,000 | |||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Common stock dividends (in dollars per share) | $ 0.32 | ||||||||||||||
Beginning Balance at Dec. 31, 2018 | $ 2,162,280 | 1,957,641 | $ 1,669,267 | $ 111,696 | 681,305 | 543,623 | 1,164,541 | (50,610) | 99 | ||||||
Beginning Balance (in shares) at Dec. 31, 2018 | 108,879,000 | 16,751,000 | |||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Impact of adoption of ASU No. 2016-13 | 2,208,586 | 1,971,762 | $ 1,674,153 | $ 111,696 | 681,305 | 562,103 | 1,178,615 | (50,610) | 146 | ||||||
Net income for common stock | 88,200 | 64,700 | |||||||||||||
Other comprehensive income (loss), net of tax (benefits) | 22,940 | 47 | 22,940 | ||||||||||||
Common stock dividends | (50,626) | ||||||||||||||
Ending Balance at Jun. 30, 2019 | 2,208,586 | 1,971,762 | $ 1,674,153 | $ 111,696 | 681,305 | 562,103 | 1,178,615 | (27,670) | 146 | ||||||
Ending Balance (in shares) at Jun. 30, 2019 | 108,972,000 | 16,751,000 | |||||||||||||
Beginning Balance at Dec. 31, 2018 | 2,162,280 | 1,957,641 | $ 1,669,267 | $ 111,696 | 681,305 | 543,623 | 1,164,541 | (50,610) | 99 | ||||||
Beginning Balance (in shares) at Dec. 31, 2018 | 108,879,000 | 16,751,000 | |||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Impact of adoption of ASU No. 2016-13 | 2,162,280 | $ (15,372) | $ 2,264,888 | 1,957,641 | $ 1,669,267 | $ 1,678,257 | $ 111,696 | 681,305 | 543,623 | $ (15,372) | $ 606,670 | 1,164,541 | (50,610) | $ (20,039) | 99 |
Ending Balance at Dec. 31, 2019 | $ 2,280,260 | (15,372) | 2,264,888 | 2,047,352 | $ 1,678,257 | 1,678,257 | $ 113,678 | 714,824 | 622,042 | (15,372) | 606,670 | 1,220,129 | (20,039) | (20,039) | (1,279) |
Ending Balance (in shares) at Dec. 31, 2019 | 108,973,328 | 108,973,000 | 17,048,000 | ||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||||||||
Impact of adoption of ASU No. 2016-13 | $ 2,183,515 | 1,964,478 | $ 1,670,433 | $ 111,696 | 681,305 | 554,451 | 1,171,354 | (41,369) | 123 | ||||||
Beginning Balance at Mar. 31, 2019 | 2,183,515 | 1,964,478 | $ 1,670,433 | $ 111,696 | 681,305 | 554,451 | 1,171,354 | (41,369) | 123 | ||||||
Beginning Balance (in shares) at Mar. 31, 2019 | 108,937,000 | 16,751,000 | |||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Impact of adoption of ASU No. 2016-13 | 2,208,586 | 1,971,762 | $ 1,674,153 | $ 111,696 | 681,305 | 562,103 | 1,178,615 | (27,670) | 146 | ||||||
Net income for common stock | 42,512 | 32,574 | 42,512 | 32,574 | |||||||||||
Other comprehensive income (loss), net of tax (benefits) | 13,699 | 23 | 13,699 | 23 | |||||||||||
Share-based expenses and other, net (in shares) | 35,000 | ||||||||||||||
Share-based expenses and other, net | 3,720 | $ 3,720 | |||||||||||||
Common stock dividends | (34,860) | (25,313) | (34,860) | (25,313) | |||||||||||
Ending Balance at Jun. 30, 2019 | $ 2,208,586 | 1,971,762 | $ 1,674,153 | $ 111,696 | 681,305 | 562,103 | 1,178,615 | (27,670) | 146 | ||||||
Ending Balance (in shares) at Jun. 30, 2019 | 108,972,000 | 16,751,000 | |||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Common stock dividends (in dollars per share) | $ 0.32 | ||||||||||||||
Impact of adoption of ASU No. 2016-13 | $ 2,208,586 | 1,971,762 | $ 1,674,153 | $ 111,696 | 681,305 | 562,103 | 1,178,615 | (27,670) | 146 | ||||||
Impact of adoption of ASU No. 2016-13 | 2,280,260 | (15,372) | 2,264,888 | 2,047,352 | 1,678,257 | 1,678,257 | 113,678 | 714,824 | 622,042 | (15,372) | 606,670 | 1,220,129 | (20,039) | (20,039) | (1,279) |
Beginning Balance at Dec. 31, 2019 | $ 2,280,260 | (15,372) | 2,264,888 | 2,047,352 | $ 1,678,257 | 1,678,257 | $ 113,678 | 714,824 | 622,042 | (15,372) | 606,670 | 1,220,129 | (20,039) | (20,039) | (1,279) |
Beginning Balance (in shares) at Dec. 31, 2019 | 108,973,328 | 108,973,000 | 17,048,000 | ||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Impact of adoption of ASU No. 2016-13 | $ 2,280,260 | (15,372) | 2,264,888 | 2,047,352 | $ 1,678,257 | 1,678,257 | $ 113,678 | 714,824 | 622,042 | (15,372) | 606,670 | 1,220,129 | (20,039) | (20,039) | (1,279) |
Ending Balance at Jan. 01, 2020 | $ 2,280,260 | (15,372) | 2,264,888 | ||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||||||||
Beginning Balance at Dec. 31, 2019 | $ 2,280,260 | (15,372) | 2,264,888 | 2,047,352 | $ 1,678,257 | 1,678,257 | $ 113,678 | 714,824 | 622,042 | (15,372) | 606,670 | 1,220,129 | (20,039) | (20,039) | (1,279) |
Beginning Balance (in shares) at Dec. 31, 2019 | 108,973,328 | 108,973,000 | 17,048,000 | ||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Impact of adoption of ASU No. 2016-13 | $ 2,280,260 | (15,372) | 2,276,505 | 2,044,499 | $ 1,678,257 | 1,674,261 | $ 113,678 | 714,824 | 622,042 | (15,372) | 604,071 | 1,217,250 | (20,039) | (1,827) | (1,253) |
Net income for common stock | 33,420 | 23,905 | 33,420 | 23,905 | |||||||||||
Other comprehensive income (loss), net of tax (benefits) | 18,212 | 26 | 18,212 | 26 | |||||||||||
Share-based expenses and other, net (in shares) | 172,000 | ||||||||||||||
Share-based expenses and other, net | (3,996) | $ (3,996) | |||||||||||||
Common stock dividends | $ (36,019) | (26,784) | (36,019) | (26,784) | |||||||||||
Ending Balance at Mar. 31, 2020 | 2,276,505 | 2,044,499 | 1,674,261 | $ 113,678 | 714,824 | 604,071 | 1,217,250 | (1,827) | (1,253) | ||||||
Ending Balance (in shares) at Mar. 31, 2020 | 109,145,000 | 17,048,000 | |||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Common stock dividends (in dollars per share) | $ 0.33 | ||||||||||||||
Beginning Balance at Dec. 31, 2019 | $ 2,280,260 | (15,372) | 2,264,888 | 2,047,352 | $ 1,678,257 | 1,678,257 | $ 113,678 | 714,824 | 622,042 | (15,372) | 606,670 | 1,220,129 | (20,039) | (20,039) | (1,279) |
Beginning Balance (in shares) at Dec. 31, 2019 | 108,973,328 | 108,973,000 | 17,048,000 | ||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Impact of adoption of ASU No. 2016-13 | $ 2,280,260 | (15,372) | 2,264,888 | 2,060,069 | $ 1,676,616 | 1,678,257 | $ 113,678 | 714,824 | 616,941 | $ (15,372) | 606,670 | 1,232,795 | (2,159) | (20,039) | (1,228) |
Net income for common stock | 82,307 | 66,234 | |||||||||||||
Other comprehensive income (loss), net of tax (benefits) | 17,880 | 51 | 17,880 | ||||||||||||
Common stock dividends | (53,568) | ||||||||||||||
Ending Balance at Jun. 30, 2020 | $ 2,291,398 | 2,060,069 | $ 1,676,616 | $ 113,678 | 714,824 | 616,941 | 1,232,795 | (2,159) | (1,228) | ||||||
Ending Balance (in shares) at Jun. 30, 2020 | 109,181,124 | 109,181,000 | 17,048,000 | ||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||||||||
Impact of adoption of ASU No. 2016-13 | $ 2,280,260 | $ (15,372) | 2,264,888 | ||||||||||||
Impact of adoption of ASU No. 2016-13 | 2,276,505 | 2,044,499 | 1,674,261 | $ 113,678 | 714,824 | 604,071 | 1,217,250 | (1,827) | (1,253) | ||||||
Beginning Balance at Mar. 31, 2020 | 2,276,505 | 2,044,499 | 1,674,261 | $ 113,678 | 714,824 | 604,071 | 1,217,250 | (1,827) | (1,253) | ||||||
Beginning Balance (in shares) at Mar. 31, 2020 | 109,145,000 | 17,048,000 | |||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Impact of adoption of ASU No. 2016-13 | 2,291,398 | $ 2,276,505 | 2,060,069 | $ 1,676,616 | $ 1,674,261 | $ 113,678 | 714,824 | 616,941 | $ 604,071 | 1,232,795 | (2,159) | $ (1,827) | (1,228) | ||
Net income for common stock | 48,887 | 42,329 | 48,887 | 42,329 | |||||||||||
Other comprehensive income (loss), net of tax (benefits) | (332) | 25 | (332) | 25 | |||||||||||
Share-based expenses and other, net (in shares) | 36,000 | ||||||||||||||
Share-based expenses and other, net | 2,355 | $ 2,355 | |||||||||||||
Common stock dividends | (36,017) | (26,784) | (36,017) | (26,784) | |||||||||||
Ending Balance at Jun. 30, 2020 | $ 2,291,398 | 2,060,069 | $ 1,676,616 | $ 113,678 | 714,824 | 616,941 | 1,232,795 | (2,159) | (1,228) | ||||||
Ending Balance (in shares) at Jun. 30, 2020 | 109,181,124 | 109,181,000 | 17,048,000 | ||||||||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Common stock dividends (in dollars per share) | $ 0.33 | ||||||||||||||
Impact of adoption of ASU No. 2016-13 | $ 2,291,398 | $ 2,060,069 | $ 1,676,616 | $ 113,678 | $ 714,824 | $ 616,941 | $ 1,232,795 | $ (2,159) | $ (1,228) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Shareholders' Equity and Common Stock Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends (in dollars per share) | $ 0.33 | $ 0.33 | $ 0.32 | $ 0.32 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net income | $ 83,253 | $ 89,146 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 119,367 | 114,863 |
Other amortization | 26,055 | 22,439 |
Provision for credit losses | 25,534 | 14,558 |
Loans originated, held for sale | (277,738) | (96,033) |
Proceeds from sale of loans, held for sale | 259,268 | 89,573 |
Gain on sale of investment securities, net | (9,275) | 0 |
Gain on sale of loans | (8,252) | (1,589) |
Deferred income taxes | (21,565) | (6,662) |
Bad debt expense | 1,089 | 802 |
Share-based compensation expense | 4,059 | 5,883 |
Allowance for equity funds used during construction | (4,209) | (6,085) |
Other | (3,854) | (4,929) |
Changes in assets and liabilities | ||
Decrease in accounts receivable and unbilled revenues, net | 23,458 | 12,048 |
Decrease (increase) in fuel oil stock | 31,583 | (40,557) |
Decrease in regulatory assets | 9,432 | 25,392 |
Increase (decrease) in regulatory liabilities | 1,717 | (3,403) |
Increase (decrease) in accounts, interest and dividends payable | (48,336) | 3,926 |
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | (12,306) | (45,977) |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 16,312 | (1,774) |
Change in other assets and liabilities | (17,120) | (37,413) |
Net cash provided by operating activities | 197,383 | 133,406 |
Cash flows from investing activities | ||
Available-for-sale investment securities purchased | (476,582) | (4,530) |
Principal repayments on available-for-sale investment securities | 181,451 | 123,855 |
Proceeds from sale of available-for-sale investment securities | 169,157 | 0 |
Principal repayments of held-to-maturity investment securities | 15,093 | 4,774 |
Purchase of stock from Federal Home Loan Bank | (22,966) | (53,115) |
Redemption of stock from Federal Home Loan Bank | 21,520 | 54,640 |
Net increase in loans held for investment | (328,356) | (173,546) |
Proceeds from sale of low-income housing investments | 6,725 | 0 |
Capital expenditures | (197,816) | (229,282) |
Contributions to low income housing investments | (1,951) | (4,069) |
Other | 4,469 | 6,143 |
Net cash used in investing activities | (629,256) | (275,130) |
Cash flows from financing activities | ||
Net increase in deposit liabilities | 758,050 | 98,531 |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (119,211) | 112,901 |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | (20,135) | 1,445 |
Proceeds from issuance of short-term debt | 165,000 | 25,000 |
Repayment of short-term debt | (100,000) | 0 |
Proceeds from issuance of other bank borrowings | 30,000 | 0 |
Proceeds from issuance of long-term debt | 351,942 | 56,150 |
Repayment of long-term debt and funds transferred for repayment of long-term debt | (177,245) | (52,489) |
Withheld shares for employee taxes on vested share-based compensation | (5,700) | (996) |
Common stock dividends | (72,037) | (69,720) |
Preferred stock dividends of subsidiaries | (946) | (946) |
Other | (1,672) | 1,189 |
Net cash provided by financing activities | 808,046 | 171,065 |
Net increase in cash, cash equivalents and restricted cash | 376,173 | 29,341 |
Cash, cash equivalents and restricted cash, beginning of period | 227,685 | 169,208 |
Cash, cash equivalents and restricted cash, end of period | 603,858 | 198,549 |
Less: Restricted cash | (29,376) | 0 |
Cash and cash equivalents, end of period | 574,482 | 198,549 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Cash flows from operating activities | ||
Net income | 67,232 | 65,698 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 111,546 | 107,860 |
Other amortization | 16,275 | 13,661 |
Deferred income taxes | (16,237) | (6,611) |
State refundable credit | (5,060) | (4,192) |
Allowance for equity funds used during construction | (4,209) | (6,085) |
Other | 116 | 639 |
Changes in assets and liabilities | ||
Decrease in accounts receivable | 10,730 | 9,201 |
Decrease in accrued unbilled revenues | 15,780 | 2,581 |
Decrease (increase) in fuel oil stock | 31,458 | (41,706) |
Increase in materials and supplies | (5,542) | (5,890) |
Decrease in regulatory assets | 9,432 | 25,392 |
Increase (decrease) in regulatory liabilities | 1,717 | (3,403) |
Decrease in accounts payable | (48,209) | (45) |
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | (14,700) | (45,785) |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 14,968 | (1,899) |
Change in other assets and liabilities | (4,918) | (9,402) |
Net cash provided by operating activities | 181,468 | 100,816 |
Cash flows from investing activities | ||
Capital expenditures | (186,532) | (199,896) |
Other | 5,441 | 2,510 |
Net cash used in investing activities | (181,091) | (197,386) |
Cash flows from financing activities | ||
Net increase (decrease) in short-term borrowings with original maturities of three months or less | 100,000 | 25,000 |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | (38,987) | 111,901 |
Proceeds from issuance of short-term debt | 100,000 | 25,000 |
Repayment of short-term debt | (100,000) | 0 |
Proceeds from issuance of long-term debt | 255,000 | 50,000 |
Repayment of long-term debt and funds transferred for repayment of long-term debt | (109,000) | (51,546) |
Common stock dividends | (53,568) | (50,626) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (998) | (998) |
Other | (1,347) | 323 |
Net cash provided by financing activities | 51,100 | 84,054 |
Net increase in cash, cash equivalents and restricted cash | 51,477 | (12,516) |
Cash, cash equivalents and restricted cash, beginning of period | 41,894 | 35,877 |
Cash, cash equivalents and restricted cash, end of period | 93,371 | 23,361 |
Less: Restricted cash | (29,376) | 0 |
Cash and cash equivalents, end of period | $ 63,995 | $ 23,361 |
Basis of presentation
Basis of presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentationThe accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information, the instructions to SEC Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the unaudited condensed consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. The accompanying unaudited condensed consolidated financial statements and the following notes should be read in conjunction with the audited consolidated financial statements and the notes thereto in HEI’s and Hawaiian Electric’s Form 10-K for the year ended December 31, 2019.In the opinion of HEI’s and Hawaiian Electric’s management, the accompanying unaudited condensed consolidated financial statements contain all material adjustments required by GAAP to fairly state consolidated HEI’s and Hawaiian Electric’s financial positions as of June 30, 2020 and December 31, 2019 and the results of their operations for the three and six months ended June 30, 2020 and 2019 and cash flows for the six months ended June 30, 2020 and 2019. All such adjustments are of a normal recurring nature, unless otherwise disclosed below or in other referenced material. Results of operations for interim periods are not necessarily indicative of results for the full year. Recent accounting pronouncements. Credit losses . In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology with an expected loss methodology. The new methodology is referred to as the current expected credit loss (CECL) methodology and applies to financial assets subject to credit losses and measured at amortized cost and certain off-balance sheet credit exposures. This includes, but is not limited to loans, loan commitments and held-to-maturity securities. 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 has been 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 requires the use of an allowance to record the estimated losses (and subsequent recoveries). The Company adopted ASU No. 2016-13 The CECL models use a probability-of-default, loss given default and exposure at default methodology to estimate the expected credit losses. Within each model or calculation, loans are further segregated based on additional risk characteristics specific to that loan type, such as risk rating, FICO score, bankruptcy score, age of loan and collateral. The Company uses both internal and external historical data, as appropriate, and a blend of economic forecasts to estimate credit losses over a reasonable and supportable forecast period and then reverts to a longer-term historical loss experience to arrive at lifetime expected credit losses. The reversion period incorporates forward-looking expectations about repayments (including prepayments) as determined by the Company’s asset liability management system. 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, on January 1, 2020, the Company recorded an adjustment of $21 million to increase the ACL, including a $2 million increase in the allowance for loan commitments, with a corresponding adjustment to reduce retained earnings by $15 million on an after-tax basis . 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 in the ACL primarily relates to required reserves for residential mortgages and consumer loans, due to the requirement to estimate lifetime expected credit losses, with lower ACL requirements for commercial and commercial real estate loans due to their short-term nature. Based on the credit quality of the Company’s existing held-to-maturity and AFS investment securities portfolio, the Company did 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. Results for reporting periods beginning after January 1, 2020 are presented under ASU No. 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The table below summarizes the impact of the Company’s adoption of ASU No. 2016-13. January 1, 2020 (in thousands) Pre-ASU No. 2016-13 adoption Impact of ASU No. 2016-13 As reported under ASU No. 2016-13 HEI consolidated Loans held for investments, net 1 $ 5,067,821 $ (19,441) $ 5,048,380 Total assets $ 13,745,251 $ (19,441) $ 13,725,810 Deferred income taxes $ 379,324 $ (5,628) $ 373,696 Other 1 583,545 1,559 585,104 Total liabilities 11,430,698 (4,069) 11,426,629 Retained earnings 622,042 (15,372) 606,670 Total shareholders’ equity 2,280,260 (15,372) 2,264,888 Total liabilities and shareholders’ equity $ 13,745,251 $ (19,441) $ 13,725,810 1 The allowance for credit losses is classified in “Loans held for investments, net,” and the allowance for loan commitments is classified in “Other” liabilities in the Company’s condensed consolidated balance sheets. |
Segment financial information
Segment financial information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment financial information | Segment financial information (in thousands) Electric utility Bank Other Total Three months ended June 30, 2020 Revenues from external customers $ 534,206 $ 74,714 $ 25 $ 608,945 Intersegment revenues (eliminations) 9 — (9) — Revenues $ 534,215 $ 74,714 $ 16 $ 608,945 Income (loss) before income taxes $ 53,027 $ 17,334 $ (10,131) $ 60,230 Income taxes (benefit) 10,199 3,320 (2,649) 10,870 Net income (loss) 42,828 14,014 (7,482) 49,360 Preferred stock dividends of subsidiaries 499 — (26) 473 Net income (loss) for common stock $ 42,329 $ 14,014 $ (7,456) $ 48,887 Six months ended June 30, 2020 Revenues from external customers $ 1,131,636 $ 154,452 $ 43 $ 1,286,131 Intersegment revenues (eliminations) 21 — (21) — Revenues $ 1,131,657 $ 154,452 $ 22 $ 1,286,131 Income (loss) before income taxes $ 82,713 $ 36,303 $ (19,090) $ 99,926 Income taxes (benefit) 15,481 6,528 (5,336) 16,673 Net income (loss) 67,232 29,775 (13,754) 83,253 Preferred stock dividends of subsidiaries 998 — (52) 946 Net income (loss) for common stock $ 66,234 $ 29,775 $ (13,702) $ 82,307 Total assets (at June 30, 2020) $ 6,332,007 $ 8,019,665 $ 129,028 $ 14,480,700 Three months ended June 30, 2019 Revenues from external customers $ 633,771 $ 81,687 $ 27 $ 715,485 Intersegment revenues (eliminations) 13 — (13) — Revenues $ 633,784 $ 81,687 $ 14 $ 715,485 Income (loss) before income taxes $ 40,817 $ 21,292 $ (9,415) $ 52,694 Income taxes (benefit) 7,744 4,276 (2,311) 9,709 Net income (loss) 33,073 17,016 (7,104) 42,985 Preferred stock dividends of subsidiaries 499 — (26) 473 Net income (loss) for common stock $ 32,574 $ 17,016 $ (7,078) $ 42,512 Six months ended June 30, 2019 Revenues from external customers $ 1,212,253 $ 164,739 $ 108 $ 1,377,100 Intersegment revenues (eliminations) 26 — (26) — Revenues $ 1,212,279 $ 164,739 $ 82 $ 1,377,100 Income (loss) before income taxes $ 82,676 $ 47,454 $ (19,397) $ 110,733 Income taxes (benefit) 16,978 9,599 (4,990) 21,587 Net income (loss) 65,698 37,855 (14,407) 89,146 Preferred stock dividends of subsidiaries 998 — (52) 946 Net income (loss) for common stock $ 64,700 $ 37,855 $ (14,355) $ 88,200 Total assets (at December 31, 2019) $ 6,388,682 $ 7,233,017 $ 123,552 $ 13,745,251 Intercompany electricity sales of the Utilities to the bank and “other” segments are not eliminated because those segments would need to purchase electricity from another source if it were not provided by the Utilities and the profit on such sales is nominal. Bank fees that ASB charges the Utilities and “other” segments are not eliminated because those segments would pay fees to another financial institution if they were to bank with another institution and the profit on such fees is nominal. Hamakua Energy, LLC’s (Hamakua Energy’s) sales to Hawaii Electric Light (a regulated affiliate) are eliminated in consolidation. |
Electric utility segment
Electric utility segment | 6 Months Ended |
Jun. 30, 2020 | |
Electric utility subsidiary [Abstract] | |
Electric utility segment | Electric utility segment Unconsolidated variable interest entities. Power purchase agreements . As of June 30, 2020, the Utilities had four PPAs for firm capacity (excluding the Puna Geothermal Ventures (PGV) PPA as 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 condensed consolidated financial statements. Hamakua Energy is an indirect subsidiary of Pacific Current and is consolidated in HEI’s condensed consolidated financial statements. Commitments and contingencies. Contingencies . The Utilities are subject in the normal course of business to pending and threatened legal proceedings. Management does not anticipate that the aggregate ultimate liability arising out of these pending or threatened legal proceedings will be material to its financial position. However, the Utilities cannot rule out the possibility that such outcomes could have a material effect on the results of operations or liquidity for a particular reporting period in the future. Power purchase agreements . Purchases from all IPPs were as follows: Three months ended June 30 Six months ended June 30 (in millions) 2020 2019 2020 2019 Kalaeloa $ 34 $ 61 $ 72 $ 101 AES Hawaii 32 32 63 64 HPOWER 17 19 34 37 Hamakua Energy 11 18 24 34 Wind IPPs 25 23 53 43 Solar IPPs 17 8 28 15 Other IPPs 1 1 1 3 2 Total IPPs $ 137 $ 162 $ 277 $ 296 1 Includes hydro power and other PPAs 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 November 20, 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 Department of Health of the State of Hawaii ( 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 9, 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 (GHG) 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, including re-examining all of the issues in the 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 were completed on March 6, 2020. On July 9, 2020, the PUC issued an order denying the Hawaii Electric Light’s request to waive the amended and restated PPA from the PUC’s competitive bidding requirements and therefore, dismissed the request for approval of the amended and restated PPA without prejudice to possible participation in any future competitive bidding process. On July 20, 2020, Hu Honua filed a motion for reconsideration of the PUC’s order which is currently pending review by the PUC. Utility projects . Many public utility projects require PUC approval and various permits from other governmental agencies. Difficulties in obtaining, or the inability to obtain, the necessary approvals or permits can result in significantly increased project costs or even cancellation of projects. In the event a project does not proceed, or if it becomes probable the PUC will disallow cost recovery for all or part of a project, or if PUC-imposed caps on project costs are expected to be exceeded, project costs may need to be written off in amounts that could result in significant reductions in Hawaiian Electric’s consolidated net income. Enterprise Resource Planning/Enterprise Asset Management (ERP/EAM) implementation project. The ERP/EAM Implementation Project went live in October 2018. Starting in January 2020, Hawaii Electric Light began to incorporate their portion of the deferred project costs in rate base and start the amortization over a 12-year period. As of June 30, 2020, the total deferred project costs and accrued carrying costs after the project went into service amounted to $59.4 million, which is net of the amortization of $0.3 million at Hawaii Electric Light. 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. In October 2019, the PUC approved the Utilities and the Consumer Advocate’s Stipulated Performance Metrics and Tracking Mechanism. As of June 30, 2020, the Utilities’ regulatory liability was $7.2 million for amounts to be returned to customers for reduction in O&M expense included in rates. At the PUC’s direction, the Utilities have been filing Semi-Annual Enterprise System Benefits (SAESB) reports. The most recent SAESB report was filed on February 26, 2020 for the period July 1 through December 31, 2019. 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 Molokai Electric Company. Molokai Electric Company had sold its former generation site (Site) in 1983, but continued to operate at the Site under a lease until 1985. The Environmental Protection Agency (EPA) has since identified environmental impacts in the subsurface soil at the Site. In cooperation with the DOH 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 June 30, 2020, 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 the 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 PCB 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 June 30, 2020, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $4.8 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. 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) rate adjustment mechanism (RAM) revenues for escalation in certain O&M expenses and rate base changes, (3) major project interim recovery (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. The requirement for triennial general rate cases under the decoupling mechanism was terminated by the PUC on April 29, 2020. 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 decision and order (D&O) in a rate case. All Utilities were limited to the RAM Cap in 2020. 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 2019 approved MPIR amounts for Schofield Generating Station of $19.8 million (which accrued effective January 1, 2019), included the 2019 return on project amount (up to the capped amount) in rate base, depreciation and incremental O&M expenses, are collected from June 2020 through May 2021. The PUC approved the Utilities’ requests for MPIR recovery of the cost of the Grid Modernization Strategy Phase 1 project and West Loch Photovoltaic (PV) project in March and December 2019, respectively. On June 5, 2020, the Utilities submitted 2020 MPIR amounts totaling $23.6 million for the Schofield Generation Station ($19.2 million), West Loch PV project ($3.8 million) and Grid Modernization Strategy Phase 1 project ($0.6 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, subject to PUC review. 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 $6.8 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 $1.4 million - in total for the three utilities). • 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 was reflected in the 2020 annual decoupling filing and increased 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 is 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. Half of the incentive was earned upon PUC approval of the PPAs and the other half is eligible to be earned in the year following the in-service date of the projects and is dependent on the amount of energy the Utilities receive from the facilities. The total amount of the incentive the Utilities are eligible for is capped at $3.5 million. Based on the seven PPAs approved in 2019, the Utilities recognized $1.7 million in 2019. 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 (subsequently extended to July 9, 2020), and by September 2020 under the Renewable RFPs, with a declining PIM for projects that are not filed by these deadlines. On July 9, 2020, the Utilities filed two Grid Service Purchase Agreements for the Grid Service RFP, which qualify for PIMs, however, details of the incentive metrics will be determined by PUC. Annual decoupling filings . The net annual incremental amounts to be collected (refunded) from June 1, 2020 through May 31, 2021 are as follows: (in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Total 2020 Annual incremental RAM adjusted revenues $ 20.6 $ 3.2 $ 5.7 $ 29.5 Annual change in accrued RBA balance as of December 31, 2019 (and associated revenue taxes) which incorporates MPIR recovery (46.5) (9.9) (11.0) (67.4) Incremental Performance Incentive Mechanisms (net) 2.2 (0.1) (0.1) 2.0 Net annual incremental amount to be collected (refunded) under the tariffs $ (23.7) $ (6.8) $ (5.4) $ (35.9) Performance-based regulation proceeding. On April 18, 2018, the PUC issued an order, instituting a proceeding to investigate performance-based regulation (PBR). The PUC stated that PBR seeks to utilize both revenue adjustment mechanisms and performance mechanisms to more strongly align utilities’ incentives with customer interests. The order stated that, in general, the PUC is interested in ratemaking elements and/or mechanisms that result in: • Greater cost control and reduced rate volatility; • Efficient investment and allocation of resources regardless of classification as capital or operating expense; • Fair distribution of risks between utilities and customers; and • Fulfillment of State policy goals. The proceeding has two phases. Phase 1 examined the current regulatory framework and identified those areas of utility performance that are deserving of further focus in Phase 2. In May 2019, the PUC issued an order concluding Phase 1, which established guiding principles, regulatory goals, and priority outcomes to guide the development of the PBR mechanisms in Phase 2. The PUC identified the following guiding principles, which will inform the development of the PBR framework: 1) a customer-centric approach, 2) administrative efficiency to reduce regulatory burdens; and 3) utility financial integrity to maintain the utility’s financial health. Priority goals (and priority outcomes) identified by the PUC were: enhance customer experience (affordability, reliability, interconnection experience, and customer engagement), improve utility performance (cost control, distributed energy resources (DER) asset effectiveness, and grid investment efficiency), and advance societal outcomes (capital formation, customer equity, greenhouse gas reduction, electrification of transportation, and resilience). The order also outlined the PUC’s vision of a comprehensive PBR framework that would be further developed in Phase 2. The framework envisioned would include 1) a five-year multi-year rate plan with an index-driven annual revenue adjustment based on an inflation factor, an X-factor which would encompass productivity, a Z-factor to account for exceptional circumstances not in the utility’s control and a customer dividend, 2) a symmetric earnings sharing mechanism that would help ensure that utility earnings do not excessively benefit or suffer from external factors outside of utility control or unforeseen results of regulatory mechanisms, 3) off-ramp provisions, 4) continuation of the RBA, MPIR adjustment mechanism, the pension and OPEB tracking mechanism, and other recovery mechanisms, and 5) a portfolio of performance incentive mechanisms for customer engagement and DER asset effectiveness (rewards only), and interconnection experience (both rewards and penalties), in addition to scorecards to track progress against targeted performance levels, shared savings mechanisms to apportion savings to the utility and customers, and reported metrics. The Phase 2 schedule included working group meetings through the first half of 2020, followed by statements of positions that were filed in June 2020. The remainder of the Phase 2 schedule includes discovery, reply statements of positions in August 2020, an evidentiary hearing in September 2020 and anticipated decision in December 2020. The latest procedural schedule includes steps after the Phase 2 D&O “to review and approve PBR tariffs.” Most recent rate proceedings. Hawaiian Electric 2020 test year rate case . On May 27, 2020, Hawaiian Electric and the Consumer Advocate filed a Stipulated Settlement Letter, documenting a global settlement of all issues in this rate case. The Parties agreed that as a result of this settlement agreement, there will be no increase in electric revenues over the revenues established in the 2017 test year rate case. The settlement agreement is subject to PUC approval. On May 13, 2020, the PUC issued its Final Report on the Management Audit, which recommended various operational and organizational changes intended to better manage costs and provide value to customers. The report also recommended a three Hawaii Electric Light 2019 test year rate case . On September 24, 2019, Hawaii Electric Light and the Consumer Advocate filed a Stipulated Partial Settlement Letter which documented agreements reached on all of the issues in the proceeding, except for the ROACE, capital structure, amortization period for the state investment tax credit, and automatic annual target heat rate adjustment. On November 13, 2019, the PUC issued an interim decision maintaining Hawaii Electric Light’s revenues at current effective rates based on an interim revenue requirement of $387 million, average rate base of $534 million, and a 7.52% return on rate base (RORB) that incorporates a ROACE of 9.5% and 58.0% total equity ratio, and tariffs became effective January 1, 2020 . On July 28, 2020, the PUC issued an order, approving the Stipulated Partial Settlement Letter in part and ordering final rates for the 2019 test year to remain at current effective rates such that there is a zero increase in rates. The PUC determined that an appropriate ROACE for the 2019 test year is 9.5%, approved a capital structure of 58% total equity and approved as fair a 7.52% RORB. In addition, the order, among others, (1) approved a 10-year amortization period for the state investment tax credit; and (2) approved a modification to Hawaii Electric Light’s ECRC to incorporate a 98%/2% risk-sharing split between customers and Hawaii Electric Light with an annual maximum exposure cap of +/- $600,000. Hawaii Electric Light is to submit proposed final tariffs and a revised ECRC tariff for the PUC’s review within 30 days of this order. Maui Electric 2021 test year rate case . By an order issued on April 29, 2020, the PUC terminated the requirement of a mandatory triennial rate case cycle that was established in the Decoupling final D&O, and indicated Maui Electric is not required to file a 2021 test year rate case. Maui Electric does not intend to file a 2021 test year rate case. Regulatory assets for COVID-19 related expenses. On April 22, 2020, the Utilities filed a request to the PUC for deferral treatment of COVID-19 related expenses, including higher bad debt expense and write-offs, higher financing costs and other expenses. On May 4, 2020, the PUC issued an order, authorizing all utilities, including the Utilities, to establish regulatory assets to record costs resulting from the suspension of disconnections of service during the pendency of the Governor’s Emergency Proclamation and until otherwise ordered by the PUC. In future proceedings, the PUC will consider the reasonableness of the costs, the appropriate period of recovery, any amount of carrying costs thereon, and any savings directly attributable to suspension of disconnects, and other related matters. As part of the order, the PUC prohibits the Utilities from charging late payment fees on past due payments. On June 30, 2020, the PUC issued an order on the Utilities request for deferral treatment of COVID-19 related expenses through December 31, 2020, and allowed the Utilities to file application to request an extension of the deferral period beyond December 31, 2020. Beginning on July 31, 2020, the Utilities are required to file quarterly reports to update the Utilities’ financial condition, measures in place to assist their customers during the COVID-19 emergency situation, identifying the planned deferred costs and details for the deferred costs, and identifying funds received or benefits received that have resulted from the COVID-19 emergency period. As of June 30, 2020, the Utilities recorded a total of $6.5 million in regulatory assets pursuant to the order. Condensed consolidating financial information. Condensed consolidating financial information for Hawaiian Electric and its subsidiaries are presented for the three and six month periods ended June 30, 2020 and 2019, and as of June 30, 2020 and December 31, 2019. Hawaiian Electric unconditionally guarantees Hawaii Electric Light’s and Maui Electric’s obligations (a) to the State of Hawaii for the repayment of principal and interest on Special Purpose Revenue Bonds issued for the benefit of Hawaii Electric Light and Maui Electric, and (b) under their respective private placement note agreements and the Hawaii Electric Light notes and Maui Electric notes issued thereunder. Hawaiian Electric is also obligated, after the satisfaction of its obligations on its own preferred stock, to make dividend, redemption and liquidation payments on Hawaii Electric Light’s and Maui Electric’s preferred stock if the respective subsidiary is unable to make such payments. Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Income Three months ended June 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 380,634 78,505 75,216 — (140) $ 534,215 Expenses Fuel oil 77,290 16,254 18,907 — — 112,451 Purchased power 108,946 15,846 12,046 — — 136,838 Other operation and maintenance 74,274 17,581 18,186 — — 110,041 Depreciation 37,860 9,761 8,075 — — 55,696 Taxes, other than income taxes 36,673 7,470 7,245 — — 51,388 Total expenses 335,043 66,912 64,459 — — 466,414 Operating income 45,591 11,593 10,757 — (140) 67,801 Allowance for equity funds used during construction 1,807 193 194 — — 2,194 Equity in earnings of subsidiaries 13,776 — — — (13,776) — Retirement defined benefits expense—other than service costs (546) 193 (29) — — (382) Interest expense and other charges, net (12,499) (2,533) (2,446) — 140 (17,338) Allowance for borrowed funds used during construction 626 62 64 — — 752 Income before income taxes 48,755 9,508 8,540 — (13,776) 53,027 Income taxes 6,156 2,196 1,847 10,199 Net income 42,599 7,312 6,693 — (13,776) 42,828 Preferred stock dividends of subsidiaries — 133 96 — 229 Net income attributable to Hawaiian Electric 42,599 7,179 6,597 — (13,776) 42,599 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 42,329 7,179 6,597 — (13,776) $ 42,329 Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Comprehensive Income Three months ended June 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net income for common stock $ 42,329 7,179 6,597 — (13,776) $ 42,329 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 5,184 751 650 — (1,401) 5,184 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (5,159) (748) (653) — 1,401 (5,159) Other comprehensive income (loss), net of taxes 25 3 (3) — — 25 Comprehensive income attributable to common shareholder $ 42,354 7,182 6,594 — (13,776) $ 42,354 Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Income Three months ended June 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 450,020 89,916 94,050 — (202) $ 633,784 Expenses Fuel oil 125,431 19,941 36,248 — — 181,620 Purchased power 126,871 24,029 11,954 — — 162,854 Other operation and maintenance 78,551 18,031 22,678 — — 119,260 Depreciation 35,868 10,453 7,592 — — 53,913 Taxes, other than income taxes 42,590 8,706 9,147 — — 60,443 Total expenses 409,311 81,160 87,619 — — 578,090 Operating income 40,709 8,756 6,431 — (202) 55,694 Allowance for equity funds used during construction 2,614 218 343 — — 3,175 Equity in earnings of subsidiaries 8,086 — — — (8,086) — Retirement defined benefits expense—other than service costs (567) (105) (29) — — (701) Interest expense and other charges, net (13,390) (2,920) (2,422) — 202 (18,530) Allowance for borrowed funds used during construction 962 91 126 — — 1,179 Income before income taxes 38,414 6,040 4,449 — (8,086) 40,817 Income taxes 5,570 1,241 933 — — 7,744 Net income 32,844 4,799 3,516 — (8,086) 33,073 Preferred stock dividends of subsidiaries — 133 96 — — 229 Net income attributable to Hawaiian Electric 32,844 4,666 3,420 — (8,086) 32,844 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 32,574 4,666 3,420 — (8,086) $ 32,574 Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Comprehensive Income Three months ended June 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net income for common stock $ 32,574 4,666 3,420 — (8,086) $ 32,574 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 2,321 352 289 — (641) 2,321 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (2,298) (351) (289) — 640 (2,298) Other comprehensive income, net of taxes 23 1 — — (1) 23 Comprehensive income attributable to common shareholder $ 32,597 4,667 3,420 — (8,087) $ 32,597 Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Income Six months ended June 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Ot |
Bank segment
Bank segment | 6 Months Ended |
Jun. 30, 2020 | |
Bank Subsidiary [Abstract] | |
Bank segment | Bank segment Selected financial information American Savings Bank, F.S.B. Statements of Income and Comprehensive Income Data Three months ended June 30, Six months ended June 30 (in thousands) 2020 2019 2020 2019 Interest and dividend income Interest and fees on loans $ 53,541 $ 58,620 $ 109,086 $ 116,480 Interest and dividends on investment securities 6,288 7,535 15,718 18,163 Total interest and dividend income 59,829 66,155 124,804 134,643 Interest expense Interest on deposit liabilities 3,071 4,287 6,658 8,539 Interest on other borrowings 75 411 388 939 Total interest expense 3,146 4,698 7,046 9,478 Net interest income 56,683 61,457 117,758 125,165 Provision for credit losses 15,133 7,688 25,534 14,558 Net interest income after provision for credit losses 41,550 53,769 92,224 110,607 Noninterest income Fees from other financial services 3,102 4,798 7,673 9,360 Fee income on deposit liabilities 2,897 5,004 8,010 10,082 Fee income on other financial products 1,212 1,830 3,084 3,423 Bank-owned life insurance 1,673 2,390 2,467 4,649 Mortgage banking income 6,252 976 8,252 1,590 Gain on sale of investment securities, net 9,275 — 9,275 — Other income, net (251) 534 162 992 Total noninterest income 24,160 15,532 38,923 30,096 Noninterest expense Compensation and employee benefits 25,079 25,750 50,856 51,262 Occupancy 5,442 5,479 10,709 10,149 Data processing 3,849 3,852 7,686 7,590 Services 2,474 2,606 5,283 5,032 Equipment 2,290 2,189 4,629 4,253 Office supplies, printing and postage 1,049 1,663 2,390 3,023 Marketing 379 1,323 1,181 2,313 FDIC insurance 751 628 853 1,254 Other expense 1 7,063 4,519 11,257 8,373 Total noninterest expense 48,376 48,009 94,844 93,249 Income before income taxes 17,334 21,292 36,303 47,454 Income taxes 3,320 4,276 6,528 9,599 Net income 14,014 17,016 29,775 37,855 Other comprehensive income (loss), net of taxes (280) 14,275 19,567 20,527 Comprehensive income $ 13,734 $ 31,291 $ 49,342 $ 58,382 1 The three- and six-month periods ended June 30, 2020 include approximately $3.7 million and $3.8 million, respectively, of certain significant direct and incremental COVID-19 related costs. These costs, which have been recorded in Other expense , include $2.3 million of compensation expense and $1.1 million of enhanced cleaning and sanitation costs. Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended June 30, Six months ended June 30 (in thousands) 2020 2019 2020 2019 Interest and dividend income $ 59,829 $ 66,155 $ 124,804 $ 134,643 Noninterest income 24,160 15,532 38,923 30,096 Less: Gain on sale of investment securities, net (9,275) — (9,275) — *Revenues-Bank 74,714 81,687 154,452 164,739 Total interest expense 3,146 4,698 7,046 9,478 Provision for credit losses 15,133 7,688 25,534 14,558 Noninterest expense 48,376 48,009 94,844 93,249 Less: Retirement defined benefits gain (expense)—other than service costs (434) 40 (868) 80 *Expenses-Bank 66,221 60,435 126,556 117,365 *Operating income-Bank 8,493 21,252 27,896 47,374 Add back: Retirement defined benefits (gain) expense—other than service costs 434 (40) 868 (80) Add back: Gain on sale of investment securities, net (9,275) — (9,275) — Income before income taxes $ 17,334 $ 21,292 $ 36,303 $ 47,454 American Savings Bank, F.S.B. Balance Sheets Data (in thousands) June 30, 2020 December 31, 2019 Assets Cash and due from banks $ 140,968 $ 129,770 Interest-bearing deposits 365,996 48,628 Investment securities Available-for-sale, at fair value 1,389,633 1,232,826 Held-to-maturity, at amortized cost (fair value of $131,131 and $143,467, respectively) 124,623 139,451 Stock in Federal Home Loan Bank, at cost 9,880 8,434 Loans held for investment 5,437,817 5,121,176 Allowance for credit losses (81,307) (53,355) Net loans 5,356,510 5,067,821 Loans held for sale, at lower of cost or fair value 37,143 12,286 Other 512,722 511,611 Goodwill 82,190 82,190 Total assets $ 8,019,665 $ 7,233,017 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 2,422,042 $ 1,909,682 Deposit liabilities—interest-bearing 4,607,910 4,362,220 Other borrowings 124,975 115,110 Other 158,344 146,954 Total liabilities 7,313,271 6,533,966 Commitments and contingencies Common stock 1 1 Additional paid-in capital 350,826 349,453 Retained earnings 344,662 358,259 Accumulated other comprehensive income (loss), net of taxes Net unrealized gains on securities $ 21,264 $ 2,481 Retirement benefit plans (10,359) 10,905 (11,143) (8,662) Total shareholder’s equity 706,394 699,051 Total liabilities and shareholder’s equity $ 8,019,665 $ 7,233,017 Other assets Bank-owned life insurance $ 159,951 $ 157,465 Premises and equipment, net 203,217 204,449 Accrued interest receivable 23,381 19,365 Mortgage-servicing rights 9,647 9,101 Low-income housing investments 61,632 66,302 Real estate acquired in settlement of loans, net 43 — Other 54,851 54,929 $ 512,722 $ 511,611 Other liabilities Accrued expenses $ 40,382 $ 45,822 Federal and state income taxes payable 18,021 14,996 Cashier’s checks 25,284 23,647 Advance payments by borrowers 10,458 10,486 Other 64,199 52,003 $ 158,344 $ 146,954 Bank-owned life insurance is life insurance purchased by ASB on the lives of certain key employees, with ASB as the beneficiary. The insurance is used to fund employee benefits through tax-free income from increases in the cash value of the policies and insurance proceeds paid to ASB upon an insured’s death. Other borrowings consisted of securities sold under agreements to repurchase, federal funds purchased and advances from the Federal Home Loan Bank (FHLB) of $95.0 million, nil and $30.0 million, respectively, as of June 30, 2020 and $115 million, nil and nil, respectively, as of December 31, 2019. Investment securities. The major components of investment securities were as follows: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair Gross unrealized losses Less than 12 months 12 months or longer (dollars in thousands) Number of issues Fair Amount Number of issues Fair Amount June 30, 2020 Available-for-sale U.S. Treasury and federal agency obligations $ 100,195 $ 2,219 $ — $ 102,414 — $ — $ — — $ — $ — Mortgage-backed securities* 1,201,796 25,469 (280) 1,226,985 6 96,296 (258) 1 1,803 (22) Corporate bonds 29,767 1,640 — 31,407 — — — — — — Mortgage revenue bonds 28,827 — — 28,827 — — — — $ 1,360,585 $ 29,328 $ (280) $ 1,389,633 6 $ 96,296 $ (258) 1 $ 1,803 $ (22) Held-to-maturity Mortgage-backed securities* $ 124,623 $ 6,508 $ — $ 131,131 — $ — $ — — $ — $ — $ 124,623 $ 6,508 $ — $ 131,131 — $ — $ — — $ — $ — 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* 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* $ 139,451 $ 4,087 $ (71) $ 143,467 1 $ 12,986 $ (71) — $ — $ — $ 139,451 $ 4,087 $ (71) $ 143,467 1 $ 12,986 $ (71) — $ — $ — * Issued or guaranteed by U.S. Government agencies or sponsored agencies ASB does not believe that the investment securities that were in an unrealized loss position at June 30, 2020, represent a credit loss. 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’s investment securities portfolio did not require an allowance for credit losses at June 30, 2020. 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: June 30, 2020 Amortized cost Fair value (in thousands) Available-for-sale Due in one year or less $ 65,330 $ 65,776 Due after one year through five years 44,570 46,378 Due after five years through ten years 33,462 35,067 Due after ten years 15,427 15,427 158,789 162,648 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,201,796 1,226,985 Total available-for-sale securities $ 1,360,585 $ 1,389,633 Held-to-maturity Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ 124,623 $ 131,131 Total held-to-maturity securities $ 124,623 $ 131,131 Proceeds from the sale of available-for-sale securities, which also included the sale of ASB’s entire Visa Class B restricted stock holdings, were $169.2 million for each of the three and six months ended June 30, 2020 and nil for each of the three and six months ended June 30, 2019. Gross realized gains were $9.3 million for each of the three and six months ended June 30, 2020 and nil for each of the three and six months ended June 30, 2019. Gross realized losses were nil for each of the three and six months ended June 30, 2020 and 2019. Tax expense on realized gains were $2.5 million for the three and six months ended June 30, 2020. Loans. The components of loans were summarized as follows: June 30, 2020 December 31, 2019 (in thousands) Real estate: Residential 1-4 family $ 2,123,226 $ 2,178,135 Commercial real estate 855,566 824,830 Home equity line of credit 1,065,264 1,092,125 Residential land 13,224 14,704 Commercial construction 92,904 70,605 Residential construction 10,759 11,670 Total real estate 4,160,943 4,192,069 Commercial 1,073,829 670,674 Consumer 216,030 257,921 Total loans 5,450,802 5,120,664 Deferred fees and discounts (12,985) 512 Allowance for credit losses (81,307) (53,355) Total loans, net $ 5,356,510 $ 5,067,821 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. Allowance for credit losses. The allowance for credit losses by portfolio segment were as follows: (in thousands) Residential Commercial real Home Residential land Commercial construction Residential construction Commercial loans Consumer loans Total Three months ended June 30, 2020 Allowance for credit losses: Beginning balance $ 4,476 $ 16,587 $ 6,225 $ 352 $ 3,446 $ 14 $ 12,977 $ 33,007 $ 77,084 Charge-offs (7) — — (343) — — (699) (6,331) (7,380) Recoveries 2 — — 5 — — 106 657 770 Provision (560) 4,513 (11) 342 1,311 — 1,484 3,754 10,833 Ending balance $ 3,911 $ 21,100 $ 6,214 $ 356 $ 4,757 $ 14 $ 13,868 $ 31,087 $ 81,307 Three months ended June 30, 2019 Allowance for credit losses: Beginning balance $ 1,911 $ 14,825 $ 6,493 $ 425 $ 2,843 $ 3 $ 10,814 $ 16,983 $ 54,297 Charge-offs (5) — (19) (4) — — (494) (5,102) (5,624) Recoveries 8 — 4 7 — — 1,281 764 2,064 Provision 101 986 403 109 (797) (1) 1,472 5,415 7,688 Ending balance $ 2,015 $ 15,811 $ 6,881 $ 537 $ 2,046 $ 2 $ 13,073 $ 18,060 $ 58,425 Six months ended June 30, 2020 Allowance for credit losses: Beginning balance, prior to adoption of ASU No. 2016-13 $ 2,380 $ 15,053 $ 6,922 $ 449 $ 2,097 $ 3 $ 10,245 $ 16,206 $ 53,355 Impact of adopting ASU No. 2016-13 2,150 208 (541) (64) 289 14 922 16,463 19,441 Charge-offs (7) — — (351) — — (1,068) (12,585) (14,011) Recoveries 55 — 6 14 — — 292 1,421 1,788 Provision (667) 5,839 (173) 308 2,371 (3) 3,477 9,582 20,734 Ending balance $ 3,911 $ 21,100 $ 6,214 $ 356 $ 4,757 $ 14 $ 13,868 $ 31,087 $ 81,307 Six months ended June 30, 2019 Allowance for credit losses: Beginning balance $ 1,976 $ 14,505 $ 6,371 $ 479 $ 2,790 $ 4 $ 9,225 $ 16,769 $ 52,119 Charge-offs (19) — (19) (4) — — (1,112) (10,661) (11,815) Recoveries 617 — 9 14 — — 1,461 1,462 3,563 Provision (559) 1,306 520 48 (744) (2) 3,499 10,490 14,558 Ending balance $ 2,015 $ 15,811 $ 6,881 $ 537 $ 2,046 $ 2 $ 13,073 $ 18,060 $ 58,425 December 31, 2019 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 Allowance for loan commitments. The allowance for loan commitments by portfolio segment were as follows: (in thousands) Home equity Commercial construction Commercial loans Total Three months ended June 30, 2020 Allowance for loan commitments: Beginning balance $ 300 $ 3,191 $ 309 $ 3,800 Provision — 4,309 (9) 4,300 Ending balance $ 300 $ 7,500 $ 300 $ 8,100 Six months ended June 30, 2020 Allowance for loan commitments: Beginning balance, prior to adoption of ASU No. 2016-13 $ 392 $ 931 $ 418 $ 1,741 Impact of adopting ASU No. 2016-13 (92) 1,745 (94) 1,559 Provision — 4,824 (24) 4,800 Ending balance $ 300 $ 7,500 $ 300 $ 8,100 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 vintage date based on payment activity or internally assigned grade for loans was as follows: Term Loans by Origination Year Revolving Loans (in thousands) 2020 2019 2018 2017 2016 Prior Revolving Converted to term loans Total June 30, 2020 Residential 1-4 family Current $ 176,536 $ 272,951 $ 165,584 $ 258,111 $ 215,920 $ 1,029,434 $ — $ — $ 2,118,536 30-59 days past due — — — — — 2,192 — — 2,192 60-89 days past due — — — — — 606 — — 606 Greater than 89 days past due — — — 353 — 1,539 — — 1,892 176,536 272,951 165,584 258,464 215,920 1,033,771 — — 2,123,226 Home equity line of credit Current — — — — — — 1,027,589 33,797 1,061,386 30-59 days past due — — — — — — 790 312 1,102 60-89 days past due — — — — — — 408 175 583 Greater than 89 days past due — — — — — — 1,358 835 2,193 — — — — — — 1,030,145 35,119 1,065,264 Residential land Current 2,095 4,975 2,024 2,041 22 2,067 — — 13,224 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 2,095 4,975 2,024 2,041 22 2,067 — — 13,224 Residential construction Current 2,725 5,034 974 2,026 — — — — 10,759 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 2,725 5,034 974 2,026 — — — — 10,759 Consumer Current 25,186 87,908 53,640 14,851 1,602 505 21,691 3,062 208,445 30-59 days past due 105 573 583 229 18 — 200 44 1,752 60-89 days past due 83 741 792 209 24 — 248 67 2,164 Greater than 89 days past due 95 1,258 1,172 483 73 — 424 164 3,669 25,469 90,480 56,187 15,772 1,717 505 22,563 3,337 216,030 Commercial real estate Pass 89,882 77,350 78,115 29,390 56,246 172,941 17,219 — 521,143 Special Mention 9,684 41,662 54,791 35,400 69,418 60,098 — — 271,053 Substandard — 488 1,930 605 3,669 56,678 — — 63,370 Doubtful — — — — — — — — — 99,566 119,500 134,836 65,395 129,333 289,717 17,219 — 855,566 Commercial construction Pass 6,933 13,458 29,873 — 7,472 — 14,060 — 71,796 Special Mention 819 — — 18,000 — — — — 18,819 Substandard — — — — — 2,289 — — 2,289 Doubtful — — — — — — — — — 7,752 13,458 29,873 18,000 7,472 2,289 14,060 — 92,904 Commercial Pass 450,699 154,672 94,309 33,771 13,876 38,911 92,475 14,868 893,581 Special Mention 6,593 29,695 4,759 10,578 38,970 20,813 44,521 11,222 167,151 Substandard 165 4,681 145 1,637 1,241 3,139 607 1,482 13,097 Doubtful — — — — — — — — — 457,457 189,048 99,213 45,986 54,087 62,863 137,603 27,572 1,073,829 Total loans $ 771,600 $ 695,446 $ 488,691 $ 407,684 $ 408,551 $ 1,391,212 $ 1,221,590 $ 66,028 $ 5,450,802 Revolving loans converted to term loans during the six months ended June 30, 2020 in the commercial, home equity line of credit and consumer portfolios was $13.7 million, $8.7 million, and $1.4 million, respectively. The credit risk profile based on payment activity for loans was as follows: (in thousands) 30-59 60-89 90 days or more past due Total Current Total Amortized cost> June 30, 2020 Real estate: Residential 1-4 family $ 2,192 $ 606 $ 1,892 $ 4,690 $ 2,118,536 $ 2,123,226 $ — Commercial real estate 642 — — 642 854,924 855,566 — Home equity line of credit 1,102 583 2,193 3,878 1,061,386 1,065,264 — Residential land — — — — 13,224 13,224 — Commercial construction — — 2,289 2,289 90,615 92,904 — Residential construction — — — — 10,759 10,759 — Commercial 461 575 452 1,488 1,072,341 1,073,829 — Consumer 1,752 2,164 3,669 7,585 208,445 216,030 — Total loans $ 6,149 $ 3,928 $ 10,495 $ 20,572 $ 5,430,230 $ 5,450,802 $ — 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 $ — The credit risk profile based on nonaccrual loans were as follows: (in thousands) June 30, 2020 December 31, 2019 With a Related ACL Without a Related ACL Total Total Real estate: Residential 1-4 family $ 7,584 $ 3,395 $ 10,979 $ 11,395 Commercial real estate 16,241 — 16,241 195 Home equity line of credit 6,249 1,616 7,865 6,638 Residential land — 413 413 448 Commercial construction — 2,289 2,289 — Residential construction — — — — Commercial 616 2,939 3,555 5,947 Consumer 5,637 — 5,637 5,113 Total nonaccrual loans $ 36,327 $ 10,652 $ 46,979 $ 29,736 The credit risk profile based on loans whose terms have been modified and accruing interest were as follows: (in thousands) June 30, 2020 December 31, 2019 Real estate: Residential 1-4 family $ 8,667 $ 9,869 Commercial real estate 1,016 853 Home equity line of credit 9,430 10,376 Residential land 2,007 2,644 Commercial construction — — Residential construction — — Commercial 3,203 2,614 Consumer 55 57 Total troubled debt restructured loans accruing interest $ 24,378 $ 26,413 ASB did not recognize interest on nonaccrual loans for the three and six months ended June 30, 2020. 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. The allowance for credit losses on TDR loans that do not share risk characteristics are individually evaluated based on the present value of expected future cash flows discounted at the loan’s effective original contractual rate or based on the fair value of collateral less cost to sell. The financial impact of the estimated loss 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 credit losses. Loan modifications that occurred during the first six months of 2020 and 2019 were as follows: Loans modified as a TDR Three months ended June 30, 2020 Six months ended June 30, 2020 (dollars in thousands) Number Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Number Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Troubled debt restructurings Real estate: Residential 1-4 family — $ — $ — 1 $ 147 $ 7 Commercial real estate — — — 2 16,430 4,301 Home equity line of credit 2 19 3 2 19 3 Residential land 2 330 — 2 330 — Commercial construction — — — — — — Residential construction — — — — — — Commercial — — — 4 751 275 Consumer — — — — — — 4 $ 349 $ 3 11 $ 17,677 $ 4,586 Three months ended June 30, 2019 Six months ended June 30, 2019 (dollars in thousands) Number Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Number Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Troubled debt restructurings Real estate: Residential 1-4 family 1 $ 469 $ 154 9 $ 1,501 $ 161 Commercial real estate — — — — — — Home equity line of credit 2 311 59 3 432 83 Residential land 2 825 — 2 825 — Commercial construction — — — — — — Residential construction — — — — — — Commercial 2 1,317 133 3 1,507 150 Consumer — — — — — — 7 $ 2,922 $ 346 17 $ 4,265 $ 394 1 T he 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. There were no loans modified in TDRs that experienced a payment default of 90 days or more during the second quarter and first six months of 2020 and 2019. If a loan modified in a TDR subsequently defaults, ASB evaluates the loan for further impairment. Based on its evaluation, adjustments may be made in the allocation of the allowance or partial charge-offs may be taken to further write-down the carrying value of the loan. Commitments to lend additional funds to borrowers whose loan terms have been modified in a TDR totaled nil at June 30, 2020 and December 31, 2019. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides that a financial institution may elect to suspend the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and any related impairment for accounting purposes. In response to the COVID-19 pandemic, the Board of Governors of the FRB, the FDIC, the National Credit Union Administration, the OCC, and the Consumer Financial Protection Bureau, in consultation with the state financial regulators (collectively, the “agencies”) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to accounting for loan modifications, past due reporting and nonaccrual status and charge-offs. Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with the FASB staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payment. Financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreement. If a financial institution agrees to a payment deferral, these loans would not be considered past due during the period of the deferral. Lastly, during short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual or as classified. Collateral-dependent loans. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral. Loans considered collateral-dependent were as follows: June 30, 2020 Amortized cost Collateral type (in thousands) Real estate: Residential 1-4 family $ 1,795 Residential real estate property Home equity line of credit 1,387 Residential real estate property Commercial construction 2,289 Commercial real estate property Total real estate 5,471 Commercial 90 Business assets Total $ 5,561 ASB had $3.0 million and $3.5 million of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure at June 30, 2020 and December 31, 2019, respectively. The credit risk profile by internally assigned grade for loans was as follows: December 31, 2019 (in thousands) Commercial Commercial Commercial Total Grade: Pass $ 756,747 $ 68,316 $ 621,657 $ 1,446,720 Special mention 4,451 — 29,921 34,372 Substandard 63,632 2,289 19,096 85,017 Doubtful — — — — Loss — — — — Total $ 824,830 $ 70,605 $ 670,674 $ 1,566,109 The total carrying amount and the total unpaid principal balance of impaired loans were as follows: December 31, 2019 Three months ended June 30, 2019 Six months ended June 30, 2019 (in thousands) Recorded Unpaid Related Average Interest Average Interest With no related allowance recorded Real estate: Residential 1-4 family $ 6,817 $ 7,207 $ — $ 8,993 $ 87 $ 8,492 $ 247 Commercial real estate 195 200 — — — — — Home equity line of credit 1,984 2,135 — 1,940 54 2,238 66 Residential land 3,091 3,294 — 2,280 24 2,158 50 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 1,948 2,285 — 4,626 — 4,299 — Consumer 2 2 — 31 — 31 — $ 14,037 $ 15,123 $ — $ 17,870 $ 165 $ 17,218 $ 363 With an allowance recorded Real estate: Residential 1-4 family $ 8,783 $ 8,835 $ 898 $ 8,440 $ 96 $ 8,417 $ 179 Commercial real estate 853 853 2 894 9 900 19 Home equity line of credit 10,089 10,099 322 11,665 152 11,743 282 Residential land — — — 79 — 54 — Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 6,470 6,470 1,015 10,997 30 7,874 56 Consumer 505 505 454 288 1 173 2 $ 26,700 $ 26,762 $ 2,691 $ 32,363 $ 288 $ 29,161 $ 538 Total Real estate: Residential 1-4 family $ 15,600 $ 16,042 $ 898 $ 17,433 $ 183 $ 16,909 $ 426 Commercial real estate 1,048 1,053 2 894 9 900 19 Home equity line of credit 12,073 12,234 322 13,605 206 13,981 348 Residential land 3,091 3,294 — 2,359 24 2,212 50 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 8,418 8,755 1,015 15,623 30 12,173 56 Consumer 507 507 454 319 1 204 2 $ 40,737 $ 41,885 $ 2,691 $ 50,233 $ 453 $ 46,379 $ 901 * Since loan was classified as impaired. 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 proceeds from the sale of residential mortgages of $186.8 million and $64.7 million for the three months ended June 30, 2020 and 2019, respectively, and $259.3 million and $89.6 million for the six months ended June 30, 2020 and 2019, respectively, and recognized gains on such sales of $6.3 million and $1.0 million for the three months ended June 30, 2020 and 2019, respectively, and $8.3 million and $1.6 million for the six months ended June 30, 2020 and 2019, respectively. There were no repurchased mortgage loans for the three and six months ended June 30, 2020 and 2019. The repurchase reserve was $0.1 million as of June 30, 2020 and 2019. Mortgage servicing fees, a component of other income, net, were $0.8 million for the three months ended June 30, 2020 and 2019, respectively and $1.6 million and $1.5 million for the six months ended June 30, 2020 and 2019, respectively. Changes in the carrying value of MSRs were as follows: (in thousands) Gross carrying amount 1 Accumulated amortization Valuation allowance Net June 30, 2020 $ 23,904 $ (13,993) $ (264) $ 9,647 December 31, 2019 21,543 (12,442) — 9,101 1 Reflects impact of loans paid in full Changes related to MSRs were as follows: Three months ended June 30, Six months ended June 30 (in thousands) 2020 2019 2020 2019 Mortgage servicing rights Beginning balance $ 9,120 $ 7,897 $ 9,101 $ 8,062 Amount capitalized 1,726 632 2,362 862 Amortization (935) (426) (1,552) (821) Other-than-temporary impairment — — — — Carrying amount before valuation allowance 9,911 8,103 9,911 8,103 Valuation allowance for mortgage servicing rights Beginning balance — — — — Provision (recovery) 264 — 264 — Other-than-temporary impairment — — — — Ending balance 264 — 264 — Net carrying value of mortgage servicing rights $ 9,647 $ 8,103 $ 9,647 $ 8,103 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: (dollars in thousands) June 30, 2020 December 31, 2019 Unpaid principal balance $ 1,360,920 $ 1,276,437 Weighted average note rate 3.87 % 3.96 % Weighted average discount rate 9.3 % 9.3 % Weighted average prepayment speed 16.9 % 11.4 % The sensitivity analysis of fair value of MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows: (dollars in thousands) June 30, 2020 December 31, 2019 Prepayment rate: 25 basis points adverse rate change $ (539) $ (950) 50 basis points adverse rate change (1,062) (1,947) Discount rate: 25 basis points adverse rate change (64) (102 |
Credit agreements
Credit agreements | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Credit agreements and changes in debt | Credit agreements and changes in debt 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. No amounts under the Credit Facilities were outstanding as of June 30, 2020 and December 31, 2019. None of the facilities are collateralized. 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. On April 20, 2020, Hawaiian Electric closed on a $75 million 364-day revolving credit agreement (364-day Revolver) with a syndicate of four banks. Under the 364-day Revolver, draws bear interest at a floating rate at Hawaiian Electric’s option of either (i) a rate equal to an alternate base rate as defined in the agreement or (ii) a rate equal to an adjusted London interbank offered rate, as defined in the agreement, plus an applicable margin, requires annual fees for undrawn amounts, and terminates on April 19, 2021. The 364-day Revolver 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 and restated revolving unsecured credit agreement. As of June 30, 2020, Hawaiian Electric had no amounts outstanding on this revolving credit agreement. On May 14, 2020, the Utilities issued, through a private placement pursuant to separate Note Purchase Agreements (the Note Purchase Agreements), the following unsecured senior notes bearing taxable interest (the Notes): Series 2020A Series 2020B Series 2020C Aggregate principal amount $80 million $60 million $20 million Fixed coupon interest rate Hawaiian Electric 3.31% 3.31% 3.96% Hawaii Electric Light 3.96% Maui Electric 3.31% 3.96% Maturity date Hawaiian Electric 5/1/2030 5/1/2030 5/1/2050 Hawaii Electric Light 5/1/2050 Maui Electric 5/1/2030 5/1/2050 Principal amount by company: Hawaiian Electric $50 million (Green Bond) $40 million $20 million Hawaii Electric Light $10 million — — Maui Electric $20 million 20 million — The 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. All of the proceeds of the Notes were used by Hawaiian Electric, Hawaii Electric Light and Maui Electric to finance their capital expenditures and/or to reimburse funds used for the payment of capital expenditures. The 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.” On May 19, 2020, Hawaiian Electric paid off and terminated $100 million term loan credit agreement dated as of December 23, 2019. In addition, Hawaiian Electric entered into a 364-day, $50 million term loan credit agreement that matures |
Shareholders' equity
Shareholders' equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Shareholders' equity | Shareholders’ equity Accumulated other comprehensive income/(loss) . Changes in the balances of each component of accumulated other comprehensive income/(loss) (AOCI) were as follows: HEI Consolidated Hawaiian Electric Consolidated (in thousands) Net unrealized gains (losses) on securities Unrealized gains (losses) on derivatives Retirement benefit plans AOCI AOCI-Retirement benefit plans Balance, December 31, 2019 $ 2,481 $ (1,613) $ (20,907) $ (20,039) $ (1,279) Current period other comprehensive income (loss) 18,783 (1,982) 1,079 17,880 51 Balance, June 30, 2020 $ 21,264 $ (3,595) $ (19,828) $ (2,159) $ (1,228) Balance, December 31, 2018 $ (24,423) $ (436) $ (25,751) $ (50,610) $ 99 Current period other comprehensive income (loss) 23,593 (1,063) 410 22,940 47 Balance, June 30, 2019 $ (830) $ (1,499) $ (25,341) $ (27,670) $ 146 Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Three months ended June 30 Six months ended June 30 Affected line item in the (in thousands) 2020 2019 2020 2019 Statements of Income / Balance Sheets HEI consolidated Net realized gains on securities included in net income $ (1,638) $ — $ (1,638) $ — Gain on sale of investment securities, net Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 5,690 2,503 11,396 5,006 See Note 8 for additional details Impact of D&Os of the PUC included in regulatory assets (5,159) (2,298) (10,317) (4,596) See Note 8 for additional details Total reclassifications $ (1,107) $ 205 $ (559) $ 410 Hawaiian Electric consolidated Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost $ 5,184 $ 2,321 $ 10,368 $ 4,643 See Note 8 for additional details Impact of D&Os of the PUC included in regulatory assets (5,159) (2,298) (10,317) (4,596) See Note 8 for additional details Total reclassifications $ 25 $ 23 $ 51 $ 47 |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenue from contracts with customers. The following tables disaggregate revenues by major source, timing of revenue recognition, and segment: Three months ended June 30, 2020 Six months ended June 30, 2020 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 187,590 $ — $ — $ 187,590 $ 377,856 $ — $ — $ 377,856 Electric energy sales - commercial 159,874 — — 159,874 356,979 — — 356,979 Electric energy sales - large light and power 176,467 — — 176,467 392,687 — — 392,687 Electric energy sales - other 1,779 — — 1,779 5,237 — — 5,237 Bank fees — 7,211 — 7,211 — 18,767 — 18,767 Total revenues from contracts with customers 525,710 7,211 — 532,921 1,132,759 18,767 — 1,151,526 Revenues from other sources Regulatory revenue 2,826 — — 2,826 (12,478) — — (12,478) Bank interest and dividend income — 59,829 — 59,829 — 124,804 — 124,804 Other bank noninterest income — 7,674 — 7,674 — 10,881 — 10,881 Other 5,679 — 16 5,695 11,376 — 22 11,398 Total revenues from other sources 8,505 67,503 16 76,024 (1,102) 135,685 22 134,605 Total revenues $ 534,215 $ 74,714 $ 16 $ 608,945 $ 1,131,657 $ 154,452 $ 22 $ 1,286,131 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 7,211 $ — $ 7,211 $ — $ 18,767 $ — $ 18,767 Services/goods transferred over time 525,710 — — 525,710 1,132,759 — — 1,132,759 Total revenues from contracts with customers $ 525,710 $ 7,211 $ — $ 532,921 $ 1,132,759 $ 18,767 $ — $ 1,151,526 Three months ended June 30, 2019 Six months ended June 30, 2019 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 195,868 $ — $ — $ 195,868 $ 371,613 $ — $ — $ 371,613 Electric energy sales - commercial 217,278 — — 217,278 404,686 — — 404,686 Electric energy sales - large light and power 231,869 — — 231,869 430,795 — — 430,795 Electric energy sales - other 3,774 — — 3,774 7,852 — — 7,852 Bank fees — 11,632 — 11,632 — 22,865 — 22,865 Total revenues from contracts with customers 648,789 11,632 — 660,421 1,214,946 22,865 — 1,237,811 Revenues from other sources Regulatory revenue (20,360) — — (20,360) (14,153) — — (14,153) Bank interest and dividend income — 66,155 — 66,155 — 134,643 — 134,643 Other bank noninterest income — 3,900 — 3,900 — 7,231 — 7,231 Other 5,355 — 14 5,369 11,486 — 82 11,568 Total revenues from other sources (15,005) 70,055 14 55,064 (2,667) 141,874 82 139,289 Total revenues $ 633,784 $ 81,687 $ 14 $ 715,485 $ 1,212,279 $ 164,739 $ 82 $ 1,377,100 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 11,632 $ — $ 11,632 $ — $ 22,865 $ — $ 22,865 Services/goods transferred over time 648,789 — — 648,789 1,214,946 — — 1,214,946 Total revenues from contracts with customers $ 648,789 $ 11,632 $ — $ 660,421 $ 1,214,946 $ 22,865 $ — $ 1,237,811 There are no material contract assets or liabilities associated with revenues from contracts with customers existing at the beginning of the period or as of June 30, 2020. 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 condensed consolidated balance sheets and customer accounts receivable, net and accrued unbilled revenues, net on Hawaiian Electric’s condensed consolidated balance sheets. As of June 30, 2020, 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 | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Retirement benefits | Retirement benefits Defined benefit pension and other postretirement benefit plans information. For the first six months of 2020, the Company contributed $17 million ($17 million by the Utilities) to its pension and other postretirement benefit plans, compared to $24 million ($23 million by the Utilities) in the first six months of 2019. The Company’s current estimate of total contributions to its pension and other postretirement benefit plans in 2020 is $71 million ($70 million by the Utilities, $1 million by HEI and nil by ASB), compared to $49 million ($48 million by the Utilities, $1 million by HEI and nil by ASB) in 2019. In addition, the Company expects to pay directly $3 million ($1 million by the Utilities) of benefits in 2020, compared to $2 million ($1 million by the Utilities) paid in 2019. The components of net periodic pension costs (NPPC) and net periodic benefit costs (NPBC) for HEI consolidated and Hawaiian Electric consolidated were as follows: Three months ended June 30 Six months ended June 30 Pension benefits Other benefits Pension benefits Other benefits (in thousands) 2020 2019 2020 2019 2020 2019 2020 2019 HEI consolidated Service cost $ 18,362 $ 15,382 $ 631 $ 542 $ 36,725 $ 30,764 $ 1,262 $ 1,083 Interest cost 20,164 21,033 1,856 1,997 40,327 42,066 3,711 3,994 Expected return on plan assets (28,465) (27,999) (3,039) (3,086) (56,931) (55,997) (6,077) (6,172) Amortization of net prior period (gain)/cost 2 (11) (441) (452) 5 (22) (881) (904) Amortization of net actuarial (gains)/losses 8,058 3,839 51 (4) 16,115 7,678 101 (7) Net periodic pension/benefit cost (return) 18,121 12,244 (942) (1,003) 36,241 24,489 (1,884) (2,006) Impact of PUC D&Os 6,261 12,278 777 811 12,523 24,557 1,554 1,622 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 24,382 $ 24,522 $ (165) $ (192) $ 48,764 $ 49,046 $ (330) $ (384) Hawaiian Electric consolidated Service cost $ 17,891 $ 15,001 $ 625 $ 538 $ 35,782 $ 30,002 $ 1,251 $ 1,075 Interest cost 18,715 19,414 1,781 1,918 37,430 38,828 3,563 3,835 Expected return on plan assets (26,857) (26,164) (2,990) (3,036) (53,712) (52,328) (5,980) (6,071) Amortization of net prior period (gain)/cost 3 2 (439) (451) 5 4 (879) (902) Amortization of net actuarial losses 7,369 3,576 51 — 14,737 7,152 102 — Net periodic pension/benefit cost (return) 17,121 11,829 (972) (1,031) 34,242 23,658 (1,943) (2,063) Impact of PUC D&Os 6,261 12,278 777 811 12,523 24,557 1,554 1,622 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 23,382 $ 24,107 $ (195) $ (220) $ 46,765 $ 48,215 $ (389) $ (441) HEI consolidated recorded retirement benefits expense of $31 million ($29 million by the Utilities) in the first six months of 2020 and $29 million ($29 million by the Utilities) in the first six months of 2019 and charged the remaining net periodic benefit cost primarily to electric utility plant. The Utilities have implemented pension and OPEB tracking mechanisms under which all of their retirement benefit expenses (except for executive life and nonqualified pension plan expenses) determined in accordance with GAAP are recovered over time. Under the tracking mechanisms, 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. Defined contribution plans information. For the first six months of 2020 and 2019, the Company’s expenses for its defined contribution plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan were $3.7 million and $3.6 million, respectively, and cash contributions were $4.6 million and $4.9 million, respectively. For the first six months of 2020 and 2019, the Utilities’ expenses for its defined contribution plan under the HEIRSP were $1.4 million and $1.3 million, respectively, and cash contributions were $1.4 million and $1.3 million, respectively. |
Share-based compensation
Share-based compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation | Share-based compensation Under the 2010 Equity and Incentive Plan, as amended, HEI can issue shares of common stock as incentive compensation to selected employees in the form of stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares and other share-based and cash-based awards. The 2010 Equity and Incentive Plan (original EIP) was amended and restated effective March 1, 2014 (EIP) and an additional 1.5 million shares were added to the shares available for issuance under these programs. As of June 30, 2020, approximately 3.0 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). 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. In June 2019, an additional 300,000 shares were made available for issuance under the 2011 Director Plan. As of June 30, 2020, there were 274,163 shares remaining available for future issuance under the 2011 Director Plan. Share-based compensation expense and the related income tax benefit were as follows: Three months ended June 30 Six months ended June 30 (in millions) 2020 2019 2020 2019 HEI consolidated Share-based compensation expense 1 $ 2.4 $ 3.7 $ 4.1 $ 5.9 Income tax benefit 0.4 0.7 0.7 0.9 Hawaiian Electric consolidated Share-based compensation expense 1 0.4 1.1 1.2 1.8 Income tax benefit 0.1 0.2 0.2 0.3 1 For the three and six months ended June 30, 2020 and 2019, 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: Three months ended June 30 Six months ended June 30 (dollars in millions) 2020 2019 2020 2019 Shares granted 35,632 35,580 36,100 35,580 Fair value $ 1.3 $ 1.5 $ 1.3 $ 1.5 Income tax benefit 0.3 0.4 0.3 0.4 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: Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 203,441 $ 40.67 211,225 $ 35.28 207,641 $ 35.36 200,358 $ 33.05 Granted 916 37.90 — — 78,595 47.99 94,559 37.68 Vested — — — — (77,719) 34.19 (76,712) 32.61 Forfeited — — (2,600) 35.56 (4,160) 35.81 (9,580) 33.82 Outstanding, end of period 204,357 $ 40.65 208,625 $ 35.28 204,357 $ 40.65 208,625 $ 35.28 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ — $ 3.8 $ 3.6 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For the first six months of 2020 and 2019, total restricted stock units and related dividends that vested had a fair value of $4.2 million and $3.2 million, respectively, and the related tax benefits were $0.7 million and $0.5 million, respectively. As of June 30, 2020, there was $6.9 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 2.9 years. Long-term incentive plan payable in stock. The 2018-2020, 2019-2021 and 2020-2022 long-term incentive plans (LTIP) 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 LTIP linked to TSR . Information about HEI’s LTIP grants linked to TSR was as follows: Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 90,616 $ 42.08 98,311 $ 39.61 96,402 $ 39.62 65,578 $ 38.81 Granted — — — — 24,630 48.62 34,647 41.07 Vested (issued or unissued and cancelled) — — — — (29,409) 39.51 — — Forfeited — — — — (1,007) 41.72 (1,914) 38.62 Outstanding, end of period 90,616 $ 42.08 98,311 $ 39.61 90,616 $ 42.08 98,311 $ 39.61 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ — $ 1.2 $ 1.4 (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 three three 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: 2020 2019 Risk-free interest rate 1.39 % 2.48 % Expected life in years 3 3 Expected volatility 13.1 % 15.8 % Range of expected volatility for Peer Group 13.6% to 95.4% 15.0% to 73.2% Grant date fair value (per share) $48.62 $41.07 For the six months ended June 30, 2020, total vested LTIP awards linked to TSR and related dividends had a fair value of $2.6 million and the related tax benefits were $0.4 million. There were no share-based LTIP awards linked to TSR with a vesting date in 2019. As of June 30, 2020, there was $1.9 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 1.4 years. LTIP awards linked to other performance conditions . Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 336,344 $ 39.64 407,090 $ 35.12 403,768 $ 35.15 276,169 $ 33.80 Granted — — — — 98,522 48.10 138,580 37.68 Vested — — — — (135,804) 33.48 — — Increase above target (cancelled) (38,821) 34.12 — — (64,932) 34.12 — — Forfeited — — — — (4,031) 39.67 (7,659) 33.91 Outstanding, end of period 297,523 $ 40.37 407,090 $ 35.12 297,523 $ 40.37 407,090 $ 35.12 Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) $ — $ — $ 4.7 $ 5.2 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For the six months ended June 30, 2020, total vested LTIP awards linked to other performance conditions and related dividends had a fair value of $7.6 million and the related tax benefits were $1.2 million. There were no share-based LTIP awards linked to other performance conditions with a vesting date in 2019. As of June 30, 2020, there was $6.8 million of total unrecognized compensation cost related to the nonvested shares linked to performance conditions other than TSR. The cost is expected to be recognized over a weighted-average period of 1.6 years. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxesThe Company’s and the Utilities’ effective tax rates (combined federal and state income tax rates) were 17% and 19%, respectively, for the six months ended June 30, 2020. These rates differed from the combined statutory rates, due primarily to the Utilities’ amortization of excess deferred income taxes related to the provision in the Tax Act that lowered the federal income tax rate from 35% to 21%, the tax benefits derived from the low income housing tax credit investments and the non-taxability of the bank-owned life insurance income. The Company’s and the Utilities’ effective tax rates were 19% and 21%, respectively, for the six months ended June 30, 2019. |
Cash flows
Cash flows | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash flows | Cash flows Six months ended June 30 2020 2019 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates, net of amounts capitalized $ 50 $ 53 Income taxes paid (including refundable credits) — 46 Income taxes refunded (including refundable credits) — 4 Hawaiian Electric consolidated Interest paid to non-affiliates 32 34 Income taxes paid (including refundable credits) — 46 Income taxes refunded (including refundable credits) — 4 Supplemental disclosures of noncash activities HEI consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 3 1 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 34 30 Reduction of long-term debt from funds previously transferred for repayment (financing) 82 — Right-of-use assets obtained in exchange for operating lease obligations (investing) 20 2 Common stock issued (gross) for director and executive/management compensation (financing) 1 16 5 Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) — 9 Obligations to fund low income housing investments (investing) — 6 Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 3 1 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 30 27 Reduction of long-term debt from funds previously transferred for repayment (financing) 82 — Right-of-use assets obtained in exchange for operating lease obligations (investing) 16 1 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
Fair value measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | 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 credit 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 fixed-rate long-term debt—other than bank 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. The carrying amount of floating rate long-term debt—other than bank approximated fair value because of the short-term interest reset periods. 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 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 Significant Significant Total June 30, 2020 Financial assets HEI consolidated Available-for-sale investment securities $ 1,389,633 $ — $ 1,360,806 $ 28,827 $ 1,389,633 Held-to-maturity investment securities 124,623 — 131,131 — 131,131 Stock in Federal Home Loan Bank 9,880 — 9,880 — 9,880 Loans, net 5,393,653 — 37,345 5,540,050 5,577,395 Mortgage servicing rights 9,647 — — 10,328 10,328 Derivative assets 70,190 — 2,341 — 2,341 Financial liabilities HEI consolidated Deposit liabilities 657,627 — 663,296 — 663,296 Short-term borrowings—other than bank 131,180 — 131,180 — 131,180 Other bank borrowings 124,975 — 124,966 — 124,966 Long-term debt, net—other than bank 2,070,224 — 2,427,374 — 2,427,374 Derivative liabilities 81,861 287 4,843 — 5,130 Hawaiian Electric consolidated Short-term borrowings 49,919 — 49,919 — 49,919 Long-term debt, net 1,574,955 — 1,895,365 — 1,895,365 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 Fair value measurements on a recurring basis. Assets and liabilities measured at fair value on a recurring basis were as follows: June 30, 2020 December 31, 2019 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 $ — $ 1,226,985 $ — $ — $ 1,026,385 $ — U.S. Treasury and federal agency obligations — 102,414 — — 117,787 — Corporate bonds — 31,407 — — 60,057 — Mortgage revenue bonds — — 28,827 — — 28,597 $ — $ 1,360,806 $ 28,827 $ — $ 1,204,229 $ 28,597 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 2,341 $ — $ — $ 297 $ — Forward commitments (bank segment) 1 — — — — 3 — $ — $ 2,341 $ — $ — $ 300 $ — Derivative liabilities Forward commitments (bank segment) 1 $ 287 $ — $ — $ 33 $ 12 $ — Interest rate swap (Other segment) 2 — 4,843 — — 2,173 — $ 287 $ 4,843 $ — $ 33 $ 2,185 $ — 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. The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: Three months ended June 30 Six months ended June 30 Mortgage revenue bonds 2020 2019 2020 2019 (in thousands) Beginning balance $ 28,726 $ 27,970 $ 28,597 $ 23,636 Principal payments received — — — — Purchases 101 196 230 4,530 Unrealized gain (loss) included in other comprehensive income — — — — Ending balance $ 28,827 $ 28,166 $ 28,827 $ 28,166 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 June 30, 2020, the weighted average discount rate was 2.15%, 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 June 30, 2020 Mortgage servicing rights $ 5,419 $ — $ — $ 5,419 December 31, 2019 Loans 25 — — 25 For the six months ended June 30, 2020 and 2019, there were no adjustments to fair value for ASB’s loans held for sale. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) ($ in thousands) Fair value Valuation technique Significant unobservable input Range Weighted June 30, 2020 Mortgage servicing rights $ 5,419 Discounted cash flow Prepayment Speed 13.9% - 18.4% 16.6 % Discount rate 9.3 % 9.3 % 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 (1) Represents 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. |
Basis of presentation (Policies
Basis of presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent accounting pronouncements | Recent accounting pronouncements. Credit losses . In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology with an expected loss methodology. The new methodology is referred to as the current expected credit loss (CECL) methodology and applies to financial assets subject to credit losses and measured at amortized cost and certain off-balance sheet credit exposures. This includes, but is not limited to loans, loan commitments and held-to-maturity securities. 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 has been 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 requires the use of an allowance to record the estimated losses (and subsequent recoveries). The Company adopted ASU No. 2016-13 The CECL models use a probability-of-default, loss given default and exposure at default methodology to estimate the expected credit losses. Within each model or calculation, loans are further segregated based on additional risk characteristics specific to that loan type, such as risk rating, FICO score, bankruptcy score, age of loan and collateral. The Company uses both internal and external historical data, as appropriate, and a blend of economic forecasts to estimate credit losses over a reasonable and supportable forecast period and then reverts to a longer-term historical loss experience to arrive at lifetime expected credit losses. The reversion period incorporates forward-looking expectations about repayments (including prepayments) as determined by the Company’s asset liability management system. 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, on January 1, 2020, the Company recorded an adjustment of $21 million to increase the ACL, including a $2 million increase in the allowance for loan commitments, with a corresponding adjustment to reduce retained earnings by $15 million on an after-tax basis . 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 in the ACL primarily relates to required reserves for residential mortgages and consumer loans, due to the requirement to estimate lifetime expected credit losses, with lower ACL requirements for commercial and commercial real estate loans due to their short-term nature. Based on the credit quality of the Company’s existing held-to-maturity and AFS investment securities portfolio, the Company did 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. Results for reporting periods beginning after January 1, 2020 are presented under ASU No. 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The table below summarizes the impact of the Company’s adoption of ASU No. 2016-13. January 1, 2020 (in thousands) Pre-ASU No. 2016-13 adoption Impact of ASU No. 2016-13 As reported under ASU No. 2016-13 HEI consolidated Loans held for investments, net 1 $ 5,067,821 $ (19,441) $ 5,048,380 Total assets $ 13,745,251 $ (19,441) $ 13,725,810 Deferred income taxes $ 379,324 $ (5,628) $ 373,696 Other 1 583,545 1,559 585,104 Total liabilities 11,430,698 (4,069) 11,426,629 Retained earnings 622,042 (15,372) 606,670 Total shareholders’ equity 2,280,260 (15,372) 2,264,888 Total liabilities and shareholders’ equity $ 13,745,251 $ (19,441) $ 13,725,810 1 The allowance for credit losses is classified in “Loans held for investments, net,” and the allowance for loan commitments is classified in “Other” liabilities in the Company’s condensed consolidated balance sheets. Reference Rate Reform . |
Troubled debt restructurings | 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. The allowance for credit losses on TDR loans that do not share risk characteristics are individually evaluated based on the present value of expected future cash flows discounted at the loan’s effective original contractual rate or based on the fair value of collateral less cost to sell. The financial impact of the estimated loss 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 credit losses. |
Basis of presentation (Tables)
Basis of presentation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of impact of adoption of new accounting principle | The table below summarizes the impact of the Company’s adoption of ASU No. 2016-13. January 1, 2020 (in thousands) Pre-ASU No. 2016-13 adoption Impact of ASU No. 2016-13 As reported under ASU No. 2016-13 HEI consolidated Loans held for investments, net 1 $ 5,067,821 $ (19,441) $ 5,048,380 Total assets $ 13,745,251 $ (19,441) $ 13,725,810 Deferred income taxes $ 379,324 $ (5,628) $ 373,696 Other 1 583,545 1,559 585,104 Total liabilities 11,430,698 (4,069) 11,426,629 Retained earnings 622,042 (15,372) 606,670 Total shareholders’ equity 2,280,260 (15,372) 2,264,888 Total liabilities and shareholders’ equity $ 13,745,251 $ (19,441) $ 13,725,810 1 The allowance for credit losses is classified in “Loans held for investments, net,” and the allowance for loan commitments is classified in “Other” liabilities in the Company’s condensed consolidated balance sheets. |
Segment financial information (
Segment financial information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment financial information | (in thousands) Electric utility Bank Other Total Three months ended June 30, 2020 Revenues from external customers $ 534,206 $ 74,714 $ 25 $ 608,945 Intersegment revenues (eliminations) 9 — (9) — Revenues $ 534,215 $ 74,714 $ 16 $ 608,945 Income (loss) before income taxes $ 53,027 $ 17,334 $ (10,131) $ 60,230 Income taxes (benefit) 10,199 3,320 (2,649) 10,870 Net income (loss) 42,828 14,014 (7,482) 49,360 Preferred stock dividends of subsidiaries 499 — (26) 473 Net income (loss) for common stock $ 42,329 $ 14,014 $ (7,456) $ 48,887 Six months ended June 30, 2020 Revenues from external customers $ 1,131,636 $ 154,452 $ 43 $ 1,286,131 Intersegment revenues (eliminations) 21 — (21) — Revenues $ 1,131,657 $ 154,452 $ 22 $ 1,286,131 Income (loss) before income taxes $ 82,713 $ 36,303 $ (19,090) $ 99,926 Income taxes (benefit) 15,481 6,528 (5,336) 16,673 Net income (loss) 67,232 29,775 (13,754) 83,253 Preferred stock dividends of subsidiaries 998 — (52) 946 Net income (loss) for common stock $ 66,234 $ 29,775 $ (13,702) $ 82,307 Total assets (at June 30, 2020) $ 6,332,007 $ 8,019,665 $ 129,028 $ 14,480,700 Three months ended June 30, 2019 Revenues from external customers $ 633,771 $ 81,687 $ 27 $ 715,485 Intersegment revenues (eliminations) 13 — (13) — Revenues $ 633,784 $ 81,687 $ 14 $ 715,485 Income (loss) before income taxes $ 40,817 $ 21,292 $ (9,415) $ 52,694 Income taxes (benefit) 7,744 4,276 (2,311) 9,709 Net income (loss) 33,073 17,016 (7,104) 42,985 Preferred stock dividends of subsidiaries 499 — (26) 473 Net income (loss) for common stock $ 32,574 $ 17,016 $ (7,078) $ 42,512 Six months ended June 30, 2019 Revenues from external customers $ 1,212,253 $ 164,739 $ 108 $ 1,377,100 Intersegment revenues (eliminations) 26 — (26) — Revenues $ 1,212,279 $ 164,739 $ 82 $ 1,377,100 Income (loss) before income taxes $ 82,676 $ 47,454 $ (19,397) $ 110,733 Income taxes (benefit) 16,978 9,599 (4,990) 21,587 Net income (loss) 65,698 37,855 (14,407) 89,146 Preferred stock dividends of subsidiaries 998 — (52) 946 Net income (loss) for common stock $ 64,700 $ 37,855 $ (14,355) $ 88,200 Total assets (at December 31, 2019) $ 6,388,682 $ 7,233,017 $ 123,552 $ 13,745,251 |
Electric utility segment (Table
Electric utility segment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Regulatory Projects and Legal Obligations [Line Items] | |
Schedule of condensed consolidating statements of income (loss) | Statements of Income and Comprehensive Income Data Three months ended June 30, Six months ended June 30 (in thousands) 2020 2019 2020 2019 Interest and dividend income Interest and fees on loans $ 53,541 $ 58,620 $ 109,086 $ 116,480 Interest and dividends on investment securities 6,288 7,535 15,718 18,163 Total interest and dividend income 59,829 66,155 124,804 134,643 Interest expense Interest on deposit liabilities 3,071 4,287 6,658 8,539 Interest on other borrowings 75 411 388 939 Total interest expense 3,146 4,698 7,046 9,478 Net interest income 56,683 61,457 117,758 125,165 Provision for credit losses 15,133 7,688 25,534 14,558 Net interest income after provision for credit losses 41,550 53,769 92,224 110,607 Noninterest income Fees from other financial services 3,102 4,798 7,673 9,360 Fee income on deposit liabilities 2,897 5,004 8,010 10,082 Fee income on other financial products 1,212 1,830 3,084 3,423 Bank-owned life insurance 1,673 2,390 2,467 4,649 Mortgage banking income 6,252 976 8,252 1,590 Gain on sale of investment securities, net 9,275 — 9,275 — Other income, net (251) 534 162 992 Total noninterest income 24,160 15,532 38,923 30,096 Noninterest expense Compensation and employee benefits 25,079 25,750 50,856 51,262 Occupancy 5,442 5,479 10,709 10,149 Data processing 3,849 3,852 7,686 7,590 Services 2,474 2,606 5,283 5,032 Equipment 2,290 2,189 4,629 4,253 Office supplies, printing and postage 1,049 1,663 2,390 3,023 Marketing 379 1,323 1,181 2,313 FDIC insurance 751 628 853 1,254 Other expense 1 7,063 4,519 11,257 8,373 Total noninterest expense 48,376 48,009 94,844 93,249 Income before income taxes 17,334 21,292 36,303 47,454 Income taxes 3,320 4,276 6,528 9,599 Net income 14,014 17,016 29,775 37,855 Other comprehensive income (loss), net of taxes (280) 14,275 19,567 20,527 Comprehensive income $ 13,734 $ 31,291 $ 49,342 $ 58,382 1 The three- and six-month periods ended June 30, 2020 include approximately $3.7 million and $3.8 million, respectively, of certain significant direct and incremental COVID-19 related costs. These costs, which have been recorded in Other expense , include $2.3 million of compensation expense and $1.1 million of enhanced cleaning and sanitation costs. Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended June 30, Six months ended June 30 (in thousands) 2020 2019 2020 2019 Interest and dividend income $ 59,829 $ 66,155 $ 124,804 $ 134,643 Noninterest income 24,160 15,532 38,923 30,096 Less: Gain on sale of investment securities, net (9,275) — (9,275) — *Revenues-Bank 74,714 81,687 154,452 164,739 Total interest expense 3,146 4,698 7,046 9,478 Provision for credit losses 15,133 7,688 25,534 14,558 Noninterest expense 48,376 48,009 94,844 93,249 Less: Retirement defined benefits gain (expense)—other than service costs (434) 40 (868) 80 *Expenses-Bank 66,221 60,435 126,556 117,365 *Operating income-Bank 8,493 21,252 27,896 47,374 Add back: Retirement defined benefits (gain) expense—other than service costs 434 (40) 868 (80) Add back: Gain on sale of investment securities, net (9,275) — (9,275) — Income before income taxes $ 17,334 $ 21,292 $ 36,303 $ 47,454 |
Schedule of condensed consolidating balance sheet | Balance Sheets Data (in thousands) June 30, 2020 December 31, 2019 Assets Cash and due from banks $ 140,968 $ 129,770 Interest-bearing deposits 365,996 48,628 Investment securities Available-for-sale, at fair value 1,389,633 1,232,826 Held-to-maturity, at amortized cost (fair value of $131,131 and $143,467, respectively) 124,623 139,451 Stock in Federal Home Loan Bank, at cost 9,880 8,434 Loans held for investment 5,437,817 5,121,176 Allowance for credit losses (81,307) (53,355) Net loans 5,356,510 5,067,821 Loans held for sale, at lower of cost or fair value 37,143 12,286 Other 512,722 511,611 Goodwill 82,190 82,190 Total assets $ 8,019,665 $ 7,233,017 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 2,422,042 $ 1,909,682 Deposit liabilities—interest-bearing 4,607,910 4,362,220 Other borrowings 124,975 115,110 Other 158,344 146,954 Total liabilities 7,313,271 6,533,966 Commitments and contingencies Common stock 1 1 Additional paid-in capital 350,826 349,453 Retained earnings 344,662 358,259 Accumulated other comprehensive income (loss), net of taxes Net unrealized gains on securities $ 21,264 $ 2,481 Retirement benefit plans (10,359) 10,905 (11,143) (8,662) Total shareholder’s equity 706,394 699,051 Total liabilities and shareholder’s equity $ 8,019,665 $ 7,233,017 Other assets Bank-owned life insurance $ 159,951 $ 157,465 Premises and equipment, net 203,217 204,449 Accrued interest receivable 23,381 19,365 Mortgage-servicing rights 9,647 9,101 Low-income housing investments 61,632 66,302 Real estate acquired in settlement of loans, net 43 — Other 54,851 54,929 $ 512,722 $ 511,611 Other liabilities Accrued expenses $ 40,382 $ 45,822 Federal and state income taxes payable 18,021 14,996 Cashier’s checks 25,284 23,647 Advance payments by borrowers 10,458 10,486 Other 64,199 52,003 $ 158,344 $ 146,954 |
Hawaiian Electric Company, Inc. and Subsidiaries | |
Regulatory Projects and Legal Obligations [Line Items] | |
Schedule of purchases from all IPPs | Purchases from all IPPs were as follows: Three months ended June 30 Six months ended June 30 (in millions) 2020 2019 2020 2019 Kalaeloa $ 34 $ 61 $ 72 $ 101 AES Hawaii 32 32 63 64 HPOWER 17 19 34 37 Hamakua Energy 11 18 24 34 Wind IPPs 25 23 53 43 Solar IPPs 17 8 28 15 Other IPPs 1 1 1 3 2 Total IPPs $ 137 $ 162 $ 277 $ 296 |
Schedule of net annual incremental amounts proposed to be collected (refunded) | The net annual incremental amounts to be collected (refunded) from June 1, 2020 through May 31, 2021 are as follows: (in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Total 2020 Annual incremental RAM adjusted revenues $ 20.6 $ 3.2 $ 5.7 $ 29.5 Annual change in accrued RBA balance as of December 31, 2019 (and associated revenue taxes) which incorporates MPIR recovery (46.5) (9.9) (11.0) (67.4) Incremental Performance Incentive Mechanisms (net) 2.2 (0.1) (0.1) 2.0 Net annual incremental amount to be collected (refunded) under the tariffs $ (23.7) $ (6.8) $ (5.4) $ (35.9) |
Schedule of condensed consolidating statements of income (loss) | Condensed Consolidating Statement of Income Three months ended June 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 380,634 78,505 75,216 — (140) $ 534,215 Expenses Fuel oil 77,290 16,254 18,907 — — 112,451 Purchased power 108,946 15,846 12,046 — — 136,838 Other operation and maintenance 74,274 17,581 18,186 — — 110,041 Depreciation 37,860 9,761 8,075 — — 55,696 Taxes, other than income taxes 36,673 7,470 7,245 — — 51,388 Total expenses 335,043 66,912 64,459 — — 466,414 Operating income 45,591 11,593 10,757 — (140) 67,801 Allowance for equity funds used during construction 1,807 193 194 — — 2,194 Equity in earnings of subsidiaries 13,776 — — — (13,776) — Retirement defined benefits expense—other than service costs (546) 193 (29) — — (382) Interest expense and other charges, net (12,499) (2,533) (2,446) — 140 (17,338) Allowance for borrowed funds used during construction 626 62 64 — — 752 Income before income taxes 48,755 9,508 8,540 — (13,776) 53,027 Income taxes 6,156 2,196 1,847 10,199 Net income 42,599 7,312 6,693 — (13,776) 42,828 Preferred stock dividends of subsidiaries — 133 96 — 229 Net income attributable to Hawaiian Electric 42,599 7,179 6,597 — (13,776) 42,599 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 42,329 7,179 6,597 — (13,776) $ 42,329 Condensed Consolidating Statement of Income Three months ended June 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 450,020 89,916 94,050 — (202) $ 633,784 Expenses Fuel oil 125,431 19,941 36,248 — — 181,620 Purchased power 126,871 24,029 11,954 — — 162,854 Other operation and maintenance 78,551 18,031 22,678 — — 119,260 Depreciation 35,868 10,453 7,592 — — 53,913 Taxes, other than income taxes 42,590 8,706 9,147 — — 60,443 Total expenses 409,311 81,160 87,619 — — 578,090 Operating income 40,709 8,756 6,431 — (202) 55,694 Allowance for equity funds used during construction 2,614 218 343 — — 3,175 Equity in earnings of subsidiaries 8,086 — — — (8,086) — Retirement defined benefits expense—other than service costs (567) (105) (29) — — (701) Interest expense and other charges, net (13,390) (2,920) (2,422) — 202 (18,530) Allowance for borrowed funds used during construction 962 91 126 — — 1,179 Income before income taxes 38,414 6,040 4,449 — (8,086) 40,817 Income taxes 5,570 1,241 933 — — 7,744 Net income 32,844 4,799 3,516 — (8,086) 33,073 Preferred stock dividends of subsidiaries — 133 96 — — 229 Net income attributable to Hawaiian Electric 32,844 4,666 3,420 — (8,086) 32,844 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 32,574 4,666 3,420 — (8,086) $ 32,574 Condensed Consolidating Statement of Income Six months ended June 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 801,800 167,798 162,414 — (355) $ 1,131,657 Expenses Fuel oil 197,825 38,686 49,161 — — 285,672 Purchased power 216,897 35,367 24,390 — — 276,654 Other operation and maintenance 159,911 36,685 40,992 — — 237,588 Depreciation 75,871 19,521 16,154 — — 111,546 Taxes, other than income taxes 77,174 15,812 15,452 — — 108,438 Total expenses 727,678 146,071 146,149 — — 1,019,898 Operating income 74,122 21,727 16,265 — (355) 111,759 Allowance for equity funds used during construction 3,550 312 347 — — 4,209 Equity in earnings of subsidiaries 22,580 — — — (22,580) — Retirement defined benefits expense—other than service costs (1,092) 387 (58) — — (763) Interest expense and other charges, net (24,501) (5,017) (4,769) — 355 (33,932) Allowance for borrowed funds used during construction 1,228 98 114 — — 1,440 Income before income taxes 75,887 17,507 11,899 — (22,580) 82,713 Income taxes 9,113 3,994 2,374 — — 15,481 Net income 66,774 13,513 9,525 — (22,580) 67,232 Preferred stock dividends of subsidiaries — 267 191 — — 458 Net income attributable to Hawaiian Electric 66,774 13,246 9,334 — (22,580) 66,774 Preferred stock dividends of Hawaiian Electric 540 — — — — 540 Net income for common stock $ 66,234 13,246 9,334 — (22,580) $ 66,234 Condensed Consolidating Statement of Income Six months ended June 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 855,689 177,121 179,703 — (234) $ 1,212,279 Expenses Fuel oil 234,353 40,783 67,093 — — 342,229 Purchased power 232,094 43,206 21,999 — — 297,299 Other operation and maintenance 159,729 36,767 40,894 — — 237,390 Depreciation 71,735 20,906 15,219 — — 107,860 Taxes, other than income taxes 81,221 16,811 17,215 — — 115,247 Total expenses 779,132 158,473 162,420 — — 1,100,025 Operating income 76,557 18,648 17,283 — (234) 112,254 Allowance for equity funds used during construction 5,061 350 674 — — 6,085 Equity in earnings of subsidiaries 19,935 — — — (19,935) — Retirement defined benefits expense—other than service costs (1,134) (211) (59) — — (1,404) Interest expense and other charges, net (26,190) (5,821) (4,739) — 234 (36,516) Allowance for borrowed funds used during construction 1,864 147 246 — — 2,257 Income before income taxes 76,093 13,113 13,405 — (19,935) 82,676 Income taxes 10,853 3,011 3,114 — — 16,978 Net income 65,240 10,102 10,291 — (19,935) 65,698 Preferred stock dividends of subsidiaries — 267 191 — — 458 Net income attributable to Hawaiian Electric 65,240 9,835 10,100 — (19,935) 65,240 Preferred stock dividends of Hawaiian Electric 540 — — — — 540 Net income for common stock $ 64,700 9,835 10,100 — (19,935) $ 64,700 |
Schedule of condensed consolidating statement of comprehensive income | Condensed Consolidating Statement of Comprehensive Income Three months ended June 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net income for common stock $ 42,329 7,179 6,597 — (13,776) $ 42,329 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 5,184 751 650 — (1,401) 5,184 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (5,159) (748) (653) — 1,401 (5,159) Other comprehensive income (loss), net of taxes 25 3 (3) — — 25 Comprehensive income attributable to common shareholder $ 42,354 7,182 6,594 — (13,776) $ 42,354 Condensed Consolidating Statement of Comprehensive Income Three months ended June 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net income for common stock $ 32,574 4,666 3,420 — (8,086) $ 32,574 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 2,321 352 289 — (641) 2,321 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (2,298) (351) (289) — 640 (2,298) Other comprehensive income, net of taxes 23 1 — — (1) 23 Comprehensive income attributable to common shareholder $ 32,597 4,667 3,420 — (8,087) $ 32,597 Condensed Consolidating Statement of Comprehensive Income Six months ended June 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Consolidated Net income for common stock $ 66,234 13,246 9,334 — (22,580) $ 66,234 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 10,368 1,499 1,302 — (2,801) 10,368 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (10,317) (1,495) (1,305) — 2,800 (10,317) Other comprehensive income (loss), net of taxes 51 4 (3) — (1) 51 Comprehensive income attributable to common shareholder $ 66,285 13,250 9,331 — (22,581) $ 66,285 Condensed Consolidating Statement of Comprehensive Income Six months ended June 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Consolidated Net income for common stock $ 64,700 9,835 10,100 — (19,935) $ 64,700 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 4,643 704 578 — (1,282) 4,643 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (4,596) (702) (578) — 1,280 (4,596) Other comprehensive income, net of taxes 47 2 — — (2) 47 Comprehensive income attributable to common shareholder $ 64,747 9,837 10,100 — (19,937) $ 64,747 |
Schedule of condensed consolidating balance sheet | Condensed Consolidating Balance Sheet June 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consoli- Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 42,389 5,606 3,612 — — $ 51,607 Plant and equipment 4,859,373 1,321,091 1,173,377 — — 7,353,841 Less accumulated depreciation (1,636,504) (586,351) (535,689) — — (2,758,544) Construction in progress 170,655 20,181 23,651 — — 214,487 Utility property, plant and equipment, net 3,435,913 760,527 664,951 — — 4,861,391 Nonutility property, plant and equipment, less accumulated depreciation 5,308 115 1,532 — — 6,955 Total property, plant and equipment, net 3,441,221 760,642 666,483 — — 4,868,346 Investment in wholly owned subsidiaries, at equity 599,198 — — — (599,198) — Current assets Cash and cash equivalents 55,170 4,594 4,130 101 — 63,995 Restricted cash 29,376 — — — — 29,376 Advances to affiliates 13,500 — — — (13,500) — Customer accounts receivable, net 97,615 21,422 19,001 — — 138,038 Accrued unbilled revenues, net 74,086 12,705 13,810 — — 100,601 Other accounts receivable, net 19,409 3,592 4,358 — (16,944) 10,415 Fuel oil stock, at average cost 30,477 14,965 15,037 — — 60,479 Materials and supplies, at average cost 38,475 10,116 17,653 — — 66,244 Prepayments and other 18,005 17,151 2,773 — — 37,929 Regulatory assets 16,846 2,598 1,842 — — 21,286 Total current assets 392,959 87,143 78,604 101 (30,444) 528,363 Other long-term assets Operating lease right-of-use assets 159,169 1,490 370 — — 161,029 Regulatory assets 460,493 104,707 96,084 — — 661,284 Other 76,482 16,915 19,588 — — 112,985 Total other long-term assets 696,144 123,112 116,042 — — 935,298 Total assets $ 5,129,522 970,897 861,129 101 (629,642) $ 6,332,007 Capitalization and liabilities Capitalization Common stock equity $ 2,060,069 304,088 295,009 101 (599,198) $ 2,060,069 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,116,186 216,400 228,369 — — 1,560,955 Total capitalization 3,198,548 527,488 528,378 101 (599,198) 3,655,317 Current liabilities Current portion of operating lease liabilities 64,405 97 32 — — 64,534 Current portion of long-term debt — 14,000 — — — 14,000 Short-term borrowings from non-affiliates 49,919 — — — — 49,919 Short-term borrowings from affiliate — 12,000 1,500 — (13,500) — Accounts payable 79,071 14,408 13,599 — — 107,078 Interest and preferred dividends payable 14,580 3,349 2,736 — (6) 20,659 Taxes accrued 133,321 32,526 28,004 — — 193,851 Regulatory liabilities 11,467 7,401 7,199 — — 26,067 Other 55,378 17,181 16,070 — (16,938) 71,691 Total current liabilities 408,141 100,962 69,140 — (30,444) 547,799 Deferred credits and other liabilities Operating lease liabilities 100,833 1,394 343 — — 102,570 Deferred income taxes 261,044 52,485 57,523 — — 371,052 Regulatory liabilities 674,621 178,861 98,231 — — 951,713 Unamortized tax credits 84,885 15,773 14,348 — — 115,006 Defined benefit pension and other postretirement benefit plans liability 340,672 69,719 69,459 — — 479,850 Other 60,778 24,215 23,707 — — 108,700 Total deferred credits and other liabilities 1,522,833 342,447 263,611 — — 2,128,891 Total capitalization and liabilities $ 5,129,522 970,897 861,129 101 (629,642) $ 6,332,007 Condensed Consolidating Balance Sheet December 31, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consoli- 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) — 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) — 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) 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) $ 2,047,352 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 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) — Accounts payable 139,056 25,629 23,085 — — 187,770 Interest and preferred dividends payable 14,759 3,115 2,900 — (46) 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) 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 |
Schedule of condensed consolidating statement of changes in common stock equity | Condensed Consolidating Statement of Changes in Common Stock Equity Six months ended June 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Balance, December 31, 2019 $ 2,047,352 298,998 292,870 101 (591,969) $ 2,047,352 Net income for common stock 66,234 13,246 9,334 — (22,580) 66,234 Other comprehensive income (loss), net of taxes 51 4 (3) — (1) 51 Common stock dividends (53,568) (8,160) (7,192) — 15,352 (53,568) Balance, June 30, 2020 $ 2,060,069 304,088 295,009 101 (599,198) $ 2,060,069 Condensed Consolidating Statement of Changes in Common Stock Equity Six months ended June 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Balance, December 31, 2018 $ 1,957,641 295,874 280,863 101 (576,838) $ 1,957,641 Net income for common stock 64,700 9,835 10,100 — (19,935) 64,700 Other comprehensive income, net of taxes 47 2 — — (2) 47 Common stock dividends (50,626) (5,090) (7,534) — 12,624 (50,626) Common stock issuance expenses — (2) — — 2 — Balance, June 30, 2019 $ 1,971,762 300,619 283,429 101 (584,149) $ 1,971,762 |
Schedule of condensed consolidating statement of cash flows | Condensed Consolidating Statement of Cash Flows Six months ended June 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net cash provided by operating activities $ 154,967 20,307 21,601 — (15,407) $ 181,468 Cash flows from investing activities Capital expenditures (129,829) (30,785) (25,918) — — (186,532) Advances from affiliates 14,200 8,000 — — (22,200) — Other 4,354 552 480 — 55 5,441 Net cash used in investing activities (111,275) (22,233) (25,438) — (22,145) (181,091) Cash flows from financing activities Common stock dividends (53,568) (8,160) (7,192) — 15,352 (53,568) Preferred stock dividends of Hawaiian Electric and subsidiaries (540) (267) (191) — — (998) Proceeds from issuance of short-term debt 100,000 — — — — 100,000 Repayment of short-term debt (100,000) — — — — (100,000) Proceeds from issuance of long-term debt 205,000 10,000 40,000 — — 255,000 Repayment of long-term debt and funds transferred for repayment of long-term debt (95,000) (14,000) — — — (109,000) Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less (46,987) 12,000 (26,200) — 22,200 (38,987) Other (1,039) (61) (247) — — (1,347) Net cash provided by financing activities 7,866 (488) 6,170 — 37,552 51,100 Net increase (decrease) in cash and cash equivalents 51,558 (2,414) 2,333 — — 51,477 Cash, cash equivalents and restricted cash, beginning of period 32,988 7,008 1,797 101 — 41,894 Cash, cash equivalents and restricted cash, end of period 84,546 4,594 4,130 101 — 93,371 Less: Restricted cash (29,376) — — — — (29,376) Cash and cash equivalents, end of period $ 55,170 4,594 4,130 101 — $ 63,995 Condensed Consolidating Statement of Cash Flows Six months ended June 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net cash provided by operating activities $ 84,427 16,406 12,607 — (12,624) $ 100,816 Cash flows from investing activities Capital expenditures (150,945) (18,083) (30,868) — — (199,896) Advances to affiliates (25,300) (5,000) — — 30,300 — Other 2,821 (280) (31) — — 2,510 Net cash used in investing activities (173,424) (23,363) (30,899) — 30,300 (197,386) Cash flows from financing activities Common stock dividends (50,626) (5,090) (7,534) — 12,624 (50,626) Preferred stock dividends of Hawaiian Electric and subsidiaries (540) (267) (191) — — (998) Proceeds from issuance of short-term debt 25,000 — — — — 25,000 Proceeds from issuance of long-term debt 30,000 10,000 10,000 — — 50,000 Repayment of long-term debt (31,546) (10,000) (10,000) — — (51,546) Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less 116,901 — 25,300 — (30,300) 111,901 Other 197 43 83 — — 323 Net cash provided by (used in) financing activities 89,386 (5,314) 17,658 — (17,676) 84,054 Net increase (decrease) in cash and cash equivalents 389 (12,271) (634) — — (12,516) Cash and cash equivalents, beginning of period 16,732 15,623 3,421 101 — 35,877 Cash and cash equivalents, end of period $ 17,121 3,352 2,787 101 — $ 23,361 |
Bank segment (Tables)
Bank segment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Bank Subsidiary [Abstract] | |
Schedule of statements of income data | Statements of Income and Comprehensive Income Data Three months ended June 30, Six months ended June 30 (in thousands) 2020 2019 2020 2019 Interest and dividend income Interest and fees on loans $ 53,541 $ 58,620 $ 109,086 $ 116,480 Interest and dividends on investment securities 6,288 7,535 15,718 18,163 Total interest and dividend income 59,829 66,155 124,804 134,643 Interest expense Interest on deposit liabilities 3,071 4,287 6,658 8,539 Interest on other borrowings 75 411 388 939 Total interest expense 3,146 4,698 7,046 9,478 Net interest income 56,683 61,457 117,758 125,165 Provision for credit losses 15,133 7,688 25,534 14,558 Net interest income after provision for credit losses 41,550 53,769 92,224 110,607 Noninterest income Fees from other financial services 3,102 4,798 7,673 9,360 Fee income on deposit liabilities 2,897 5,004 8,010 10,082 Fee income on other financial products 1,212 1,830 3,084 3,423 Bank-owned life insurance 1,673 2,390 2,467 4,649 Mortgage banking income 6,252 976 8,252 1,590 Gain on sale of investment securities, net 9,275 — 9,275 — Other income, net (251) 534 162 992 Total noninterest income 24,160 15,532 38,923 30,096 Noninterest expense Compensation and employee benefits 25,079 25,750 50,856 51,262 Occupancy 5,442 5,479 10,709 10,149 Data processing 3,849 3,852 7,686 7,590 Services 2,474 2,606 5,283 5,032 Equipment 2,290 2,189 4,629 4,253 Office supplies, printing and postage 1,049 1,663 2,390 3,023 Marketing 379 1,323 1,181 2,313 FDIC insurance 751 628 853 1,254 Other expense 1 7,063 4,519 11,257 8,373 Total noninterest expense 48,376 48,009 94,844 93,249 Income before income taxes 17,334 21,292 36,303 47,454 Income taxes 3,320 4,276 6,528 9,599 Net income 14,014 17,016 29,775 37,855 Other comprehensive income (loss), net of taxes (280) 14,275 19,567 20,527 Comprehensive income $ 13,734 $ 31,291 $ 49,342 $ 58,382 1 The three- and six-month periods ended June 30, 2020 include approximately $3.7 million and $3.8 million, respectively, of certain significant direct and incremental COVID-19 related costs. These costs, which have been recorded in Other expense , include $2.3 million of compensation expense and $1.1 million of enhanced cleaning and sanitation costs. Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended June 30, Six months ended June 30 (in thousands) 2020 2019 2020 2019 Interest and dividend income $ 59,829 $ 66,155 $ 124,804 $ 134,643 Noninterest income 24,160 15,532 38,923 30,096 Less: Gain on sale of investment securities, net (9,275) — (9,275) — *Revenues-Bank 74,714 81,687 154,452 164,739 Total interest expense 3,146 4,698 7,046 9,478 Provision for credit losses 15,133 7,688 25,534 14,558 Noninterest expense 48,376 48,009 94,844 93,249 Less: Retirement defined benefits gain (expense)—other than service costs (434) 40 (868) 80 *Expenses-Bank 66,221 60,435 126,556 117,365 *Operating income-Bank 8,493 21,252 27,896 47,374 Add back: Retirement defined benefits (gain) expense—other than service costs 434 (40) 868 (80) Add back: Gain on sale of investment securities, net (9,275) — (9,275) — Income before income taxes $ 17,334 $ 21,292 $ 36,303 $ 47,454 |
Schedule of statements of comprehensive income data | Statements of Income and Comprehensive Income Data Three months ended June 30, Six months ended June 30 (in thousands) 2020 2019 2020 2019 Interest and dividend income Interest and fees on loans $ 53,541 $ 58,620 $ 109,086 $ 116,480 Interest and dividends on investment securities 6,288 7,535 15,718 18,163 Total interest and dividend income 59,829 66,155 124,804 134,643 Interest expense Interest on deposit liabilities 3,071 4,287 6,658 8,539 Interest on other borrowings 75 411 388 939 Total interest expense 3,146 4,698 7,046 9,478 Net interest income 56,683 61,457 117,758 125,165 Provision for credit losses 15,133 7,688 25,534 14,558 Net interest income after provision for credit losses 41,550 53,769 92,224 110,607 Noninterest income Fees from other financial services 3,102 4,798 7,673 9,360 Fee income on deposit liabilities 2,897 5,004 8,010 10,082 Fee income on other financial products 1,212 1,830 3,084 3,423 Bank-owned life insurance 1,673 2,390 2,467 4,649 Mortgage banking income 6,252 976 8,252 1,590 Gain on sale of investment securities, net 9,275 — 9,275 — Other income, net (251) 534 162 992 Total noninterest income 24,160 15,532 38,923 30,096 Noninterest expense Compensation and employee benefits 25,079 25,750 50,856 51,262 Occupancy 5,442 5,479 10,709 10,149 Data processing 3,849 3,852 7,686 7,590 Services 2,474 2,606 5,283 5,032 Equipment 2,290 2,189 4,629 4,253 Office supplies, printing and postage 1,049 1,663 2,390 3,023 Marketing 379 1,323 1,181 2,313 FDIC insurance 751 628 853 1,254 Other expense 1 7,063 4,519 11,257 8,373 Total noninterest expense 48,376 48,009 94,844 93,249 Income before income taxes 17,334 21,292 36,303 47,454 Income taxes 3,320 4,276 6,528 9,599 Net income 14,014 17,016 29,775 37,855 Other comprehensive income (loss), net of taxes (280) 14,275 19,567 20,527 Comprehensive income $ 13,734 $ 31,291 $ 49,342 $ 58,382 1 The three- and six-month periods ended June 30, 2020 include approximately $3.7 million and $3.8 million, respectively, of certain significant direct and incremental COVID-19 related costs. These costs, which have been recorded in Other expense , include $2.3 million of compensation expense and $1.1 million of enhanced cleaning and sanitation costs. Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended June 30, Six months ended June 30 (in thousands) 2020 2019 2020 2019 Interest and dividend income $ 59,829 $ 66,155 $ 124,804 $ 134,643 Noninterest income 24,160 15,532 38,923 30,096 Less: Gain on sale of investment securities, net (9,275) — (9,275) — *Revenues-Bank 74,714 81,687 154,452 164,739 Total interest expense 3,146 4,698 7,046 9,478 Provision for credit losses 15,133 7,688 25,534 14,558 Noninterest expense 48,376 48,009 94,844 93,249 Less: Retirement defined benefits gain (expense)—other than service costs (434) 40 (868) 80 *Expenses-Bank 66,221 60,435 126,556 117,365 *Operating income-Bank 8,493 21,252 27,896 47,374 Add back: Retirement defined benefits (gain) expense—other than service costs 434 (40) 868 (80) Add back: Gain on sale of investment securities, net (9,275) — (9,275) — Income before income taxes $ 17,334 $ 21,292 $ 36,303 $ 47,454 |
Schedule of balance sheets data | Balance Sheets Data (in thousands) June 30, 2020 December 31, 2019 Assets Cash and due from banks $ 140,968 $ 129,770 Interest-bearing deposits 365,996 48,628 Investment securities Available-for-sale, at fair value 1,389,633 1,232,826 Held-to-maturity, at amortized cost (fair value of $131,131 and $143,467, respectively) 124,623 139,451 Stock in Federal Home Loan Bank, at cost 9,880 8,434 Loans held for investment 5,437,817 5,121,176 Allowance for credit losses (81,307) (53,355) Net loans 5,356,510 5,067,821 Loans held for sale, at lower of cost or fair value 37,143 12,286 Other 512,722 511,611 Goodwill 82,190 82,190 Total assets $ 8,019,665 $ 7,233,017 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 2,422,042 $ 1,909,682 Deposit liabilities—interest-bearing 4,607,910 4,362,220 Other borrowings 124,975 115,110 Other 158,344 146,954 Total liabilities 7,313,271 6,533,966 Commitments and contingencies Common stock 1 1 Additional paid-in capital 350,826 349,453 Retained earnings 344,662 358,259 Accumulated other comprehensive income (loss), net of taxes Net unrealized gains on securities $ 21,264 $ 2,481 Retirement benefit plans (10,359) 10,905 (11,143) (8,662) Total shareholder’s equity 706,394 699,051 Total liabilities and shareholder’s equity $ 8,019,665 $ 7,233,017 Other assets Bank-owned life insurance $ 159,951 $ 157,465 Premises and equipment, net 203,217 204,449 Accrued interest receivable 23,381 19,365 Mortgage-servicing rights 9,647 9,101 Low-income housing investments 61,632 66,302 Real estate acquired in settlement of loans, net 43 — Other 54,851 54,929 $ 512,722 $ 511,611 Other liabilities Accrued expenses $ 40,382 $ 45,822 Federal and state income taxes payable 18,021 14,996 Cashier’s checks 25,284 23,647 Advance payments by borrowers 10,458 10,486 Other 64,199 52,003 $ 158,344 $ 146,954 |
Schedule of the book value and aggregate fair value by major security type | The major components of investment securities were as follows: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair Gross unrealized losses Less than 12 months 12 months or longer (dollars in thousands) Number of issues Fair Amount Number of issues Fair Amount June 30, 2020 Available-for-sale U.S. Treasury and federal agency obligations $ 100,195 $ 2,219 $ — $ 102,414 — $ — $ — — $ — $ — Mortgage-backed securities* 1,201,796 25,469 (280) 1,226,985 6 96,296 (258) 1 1,803 (22) Corporate bonds 29,767 1,640 — 31,407 — — — — — — Mortgage revenue bonds 28,827 — — 28,827 — — — — $ 1,360,585 $ 29,328 $ (280) $ 1,389,633 6 $ 96,296 $ (258) 1 $ 1,803 $ (22) Held-to-maturity Mortgage-backed securities* $ 124,623 $ 6,508 $ — $ 131,131 — $ — $ — — $ — $ — $ 124,623 $ 6,508 $ — $ 131,131 — $ — $ — — $ — $ — 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* 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* $ 139,451 $ 4,087 $ (71) $ 143,467 1 $ 12,986 $ (71) — $ — $ — $ 139,451 $ 4,087 $ (71) $ 143,467 1 $ 12,986 $ (71) — $ — $ — * Issued or guaranteed by U.S. Government agencies or sponsored agencies |
Schedule of contractual maturities of available-for-sale securities | The contractual maturities of investment securities were as follows: June 30, 2020 Amortized cost Fair value (in thousands) Available-for-sale Due in one year or less $ 65,330 $ 65,776 Due after one year through five years 44,570 46,378 Due after five years through ten years 33,462 35,067 Due after ten years 15,427 15,427 158,789 162,648 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,201,796 1,226,985 Total available-for-sale securities $ 1,360,585 $ 1,389,633 Held-to-maturity Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ 124,623 $ 131,131 Total held-to-maturity securities $ 124,623 $ 131,131 |
Schedule of components of loans receivable | The components of loans were summarized as follows: June 30, 2020 December 31, 2019 (in thousands) Real estate: Residential 1-4 family $ 2,123,226 $ 2,178,135 Commercial real estate 855,566 824,830 Home equity line of credit 1,065,264 1,092,125 Residential land 13,224 14,704 Commercial construction 92,904 70,605 Residential construction 10,759 11,670 Total real estate 4,160,943 4,192,069 Commercial 1,073,829 670,674 Consumer 216,030 257,921 Total loans 5,450,802 5,120,664 Deferred fees and discounts (12,985) 512 Allowance for credit losses (81,307) (53,355) Total loans, net $ 5,356,510 $ 5,067,821 |
Schedule of allowance for credit losses | The allowance for credit losses by portfolio segment were as follows: (in thousands) Residential Commercial real Home Residential land Commercial construction Residential construction Commercial loans Consumer loans Total Three months ended June 30, 2020 Allowance for credit losses: Beginning balance $ 4,476 $ 16,587 $ 6,225 $ 352 $ 3,446 $ 14 $ 12,977 $ 33,007 $ 77,084 Charge-offs (7) — — (343) — — (699) (6,331) (7,380) Recoveries 2 — — 5 — — 106 657 770 Provision (560) 4,513 (11) 342 1,311 — 1,484 3,754 10,833 Ending balance $ 3,911 $ 21,100 $ 6,214 $ 356 $ 4,757 $ 14 $ 13,868 $ 31,087 $ 81,307 Three months ended June 30, 2019 Allowance for credit losses: Beginning balance $ 1,911 $ 14,825 $ 6,493 $ 425 $ 2,843 $ 3 $ 10,814 $ 16,983 $ 54,297 Charge-offs (5) — (19) (4) — — (494) (5,102) (5,624) Recoveries 8 — 4 7 — — 1,281 764 2,064 Provision 101 986 403 109 (797) (1) 1,472 5,415 7,688 Ending balance $ 2,015 $ 15,811 $ 6,881 $ 537 $ 2,046 $ 2 $ 13,073 $ 18,060 $ 58,425 Six months ended June 30, 2020 Allowance for credit losses: Beginning balance, prior to adoption of ASU No. 2016-13 $ 2,380 $ 15,053 $ 6,922 $ 449 $ 2,097 $ 3 $ 10,245 $ 16,206 $ 53,355 Impact of adopting ASU No. 2016-13 2,150 208 (541) (64) 289 14 922 16,463 19,441 Charge-offs (7) — — (351) — — (1,068) (12,585) (14,011) Recoveries 55 — 6 14 — — 292 1,421 1,788 Provision (667) 5,839 (173) 308 2,371 (3) 3,477 9,582 20,734 Ending balance $ 3,911 $ 21,100 $ 6,214 $ 356 $ 4,757 $ 14 $ 13,868 $ 31,087 $ 81,307 Six months ended June 30, 2019 Allowance for credit losses: Beginning balance $ 1,976 $ 14,505 $ 6,371 $ 479 $ 2,790 $ 4 $ 9,225 $ 16,769 $ 52,119 Charge-offs (19) — (19) (4) — — (1,112) (10,661) (11,815) Recoveries 617 — 9 14 — — 1,461 1,462 3,563 Provision (559) 1,306 520 48 (744) (2) 3,499 10,490 14,558 Ending balance $ 2,015 $ 15,811 $ 6,881 $ 537 $ 2,046 $ 2 $ 13,073 $ 18,060 $ 58,425 December 31, 2019 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 |
Schedule of allowance for loan commitments | Allowance for loan commitments. The allowance for loan commitments by portfolio segment were as follows: (in thousands) Home equity Commercial construction Commercial loans Total Three months ended June 30, 2020 Allowance for loan commitments: Beginning balance $ 300 $ 3,191 $ 309 $ 3,800 Provision — 4,309 (9) 4,300 Ending balance $ 300 $ 7,500 $ 300 $ 8,100 Six months ended June 30, 2020 Allowance for loan commitments: Beginning balance, prior to adoption of ASU No. 2016-13 $ 392 $ 931 $ 418 $ 1,741 Impact of adopting ASU No. 2016-13 (92) 1,745 (94) 1,559 Provision — 4,824 (24) 4,800 Ending balance $ 300 $ 7,500 $ 300 $ 8,100 |
Schedule of credit risk profile by internally assigned grade for loans | The credit risk profile by vintage date based on payment activity or internally assigned grade for loans was as follows: Term Loans by Origination Year Revolving Loans (in thousands) 2020 2019 2018 2017 2016 Prior Revolving Converted to term loans Total June 30, 2020 Residential 1-4 family Current $ 176,536 $ 272,951 $ 165,584 $ 258,111 $ 215,920 $ 1,029,434 $ — $ — $ 2,118,536 30-59 days past due — — — — — 2,192 — — 2,192 60-89 days past due — — — — — 606 — — 606 Greater than 89 days past due — — — 353 — 1,539 — — 1,892 176,536 272,951 165,584 258,464 215,920 1,033,771 — — 2,123,226 Home equity line of credit Current — — — — — — 1,027,589 33,797 1,061,386 30-59 days past due — — — — — — 790 312 1,102 60-89 days past due — — — — — — 408 175 583 Greater than 89 days past due — — — — — — 1,358 835 2,193 — — — — — — 1,030,145 35,119 1,065,264 Residential land Current 2,095 4,975 2,024 2,041 22 2,067 — — 13,224 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 2,095 4,975 2,024 2,041 22 2,067 — — 13,224 Residential construction Current 2,725 5,034 974 2,026 — — — — 10,759 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 2,725 5,034 974 2,026 — — — — 10,759 Consumer Current 25,186 87,908 53,640 14,851 1,602 505 21,691 3,062 208,445 30-59 days past due 105 573 583 229 18 — 200 44 1,752 60-89 days past due 83 741 792 209 24 — 248 67 2,164 Greater than 89 days past due 95 1,258 1,172 483 73 — 424 164 3,669 25,469 90,480 56,187 15,772 1,717 505 22,563 3,337 216,030 Commercial real estate Pass 89,882 77,350 78,115 29,390 56,246 172,941 17,219 — 521,143 Special Mention 9,684 41,662 54,791 35,400 69,418 60,098 — — 271,053 Substandard — 488 1,930 605 3,669 56,678 — — 63,370 Doubtful — — — — — — — — — 99,566 119,500 134,836 65,395 129,333 289,717 17,219 — 855,566 Commercial construction Pass 6,933 13,458 29,873 — 7,472 — 14,060 — 71,796 Special Mention 819 — — 18,000 — — — — 18,819 Substandard — — — — — 2,289 — — 2,289 Doubtful — — — — — — — — — 7,752 13,458 29,873 18,000 7,472 2,289 14,060 — 92,904 Commercial Pass 450,699 154,672 94,309 33,771 13,876 38,911 92,475 14,868 893,581 Special Mention 6,593 29,695 4,759 10,578 38,970 20,813 44,521 11,222 167,151 Substandard 165 4,681 145 1,637 1,241 3,139 607 1,482 13,097 Doubtful — — — — — — — — — 457,457 189,048 99,213 45,986 54,087 62,863 137,603 27,572 1,073,829 Total loans $ 771,600 $ 695,446 $ 488,691 $ 407,684 $ 408,551 $ 1,391,212 $ 1,221,590 $ 66,028 $ 5,450,802 The credit risk profile by internally assigned grade for loans was as follows: December 31, 2019 (in thousands) Commercial Commercial Commercial Total Grade: Pass $ 756,747 $ 68,316 $ 621,657 $ 1,446,720 Special mention 4,451 — 29,921 34,372 Substandard 63,632 2,289 19,096 85,017 Doubtful — — — — Loss — — — — Total $ 824,830 $ 70,605 $ 670,674 $ 1,566,109 |
Schedule of credit risk profile based on payment activity for loans | The credit risk profile based on payment activity for loans was as follows: (in thousands) 30-59 60-89 90 days or more past due Total Current Total Amortized cost> June 30, 2020 Real estate: Residential 1-4 family $ 2,192 $ 606 $ 1,892 $ 4,690 $ 2,118,536 $ 2,123,226 $ — Commercial real estate 642 — — 642 854,924 855,566 — Home equity line of credit 1,102 583 2,193 3,878 1,061,386 1,065,264 — Residential land — — — — 13,224 13,224 — Commercial construction — — 2,289 2,289 90,615 92,904 — Residential construction — — — — 10,759 10,759 — Commercial 461 575 452 1,488 1,072,341 1,073,829 — Consumer 1,752 2,164 3,669 7,585 208,445 216,030 — Total loans $ 6,149 $ 3,928 $ 10,495 $ 20,572 $ 5,430,230 $ 5,450,802 $ — 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 $ — |
Schedule of credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due | The credit risk profile based on nonaccrual loans were as follows: (in thousands) June 30, 2020 December 31, 2019 With a Related ACL Without a Related ACL Total Total Real estate: Residential 1-4 family $ 7,584 $ 3,395 $ 10,979 $ 11,395 Commercial real estate 16,241 — 16,241 195 Home equity line of credit 6,249 1,616 7,865 6,638 Residential land — 413 413 448 Commercial construction — 2,289 2,289 — Residential construction — — — — Commercial 616 2,939 3,555 5,947 Consumer 5,637 — 5,637 5,113 Total nonaccrual loans $ 36,327 $ 10,652 $ 46,979 $ 29,736 The credit risk profile based on loans whose terms have been modified and accruing interest were as follows: (in thousands) June 30, 2020 December 31, 2019 Real estate: Residential 1-4 family $ 8,667 $ 9,869 Commercial real estate 1,016 853 Home equity line of credit 9,430 10,376 Residential land 2,007 2,644 Commercial construction — — Residential construction — — Commercial 3,203 2,614 Consumer 55 57 Total troubled debt restructured loans accruing interest $ 24,378 $ 26,413 |
Schedule of loan modifications | Loan modifications that occurred during the first six months of 2020 and 2019 were as follows: Loans modified as a TDR Three months ended June 30, 2020 Six months ended June 30, 2020 (dollars in thousands) Number Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Number Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Troubled debt restructurings Real estate: Residential 1-4 family — $ — $ — 1 $ 147 $ 7 Commercial real estate — — — 2 16,430 4,301 Home equity line of credit 2 19 3 2 19 3 Residential land 2 330 — 2 330 — Commercial construction — — — — — — Residential construction — — — — — — Commercial — — — 4 751 275 Consumer — — — — — — 4 $ 349 $ 3 11 $ 17,677 $ 4,586 Three months ended June 30, 2019 Six months ended June 30, 2019 (dollars in thousands) Number Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Number Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Troubled debt restructurings Real estate: Residential 1-4 family 1 $ 469 $ 154 9 $ 1,501 $ 161 Commercial real estate — — — — — — Home equity line of credit 2 311 59 3 432 83 Residential land 2 825 — 2 825 — Commercial construction — — — — — — Residential construction — — — — — — Commercial 2 1,317 133 3 1,507 150 Consumer — — — — — — 7 $ 2,922 $ 346 17 $ 4,265 $ 394 1 T he 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 collateral-dependent loans | Loans considered collateral-dependent were as follows: June 30, 2020 Amortized cost Collateral type (in thousands) Real estate: Residential 1-4 family $ 1,795 Residential real estate property Home equity line of credit 1,387 Residential real estate property Commercial construction 2,289 Commercial real estate property Total real estate 5,471 Commercial 90 Business assets Total $ 5,561 The total carrying amount and the total unpaid principal balance of impaired loans were as follows: December 31, 2019 Three months ended June 30, 2019 Six months ended June 30, 2019 (in thousands) Recorded Unpaid Related Average Interest Average Interest With no related allowance recorded Real estate: Residential 1-4 family $ 6,817 $ 7,207 $ — $ 8,993 $ 87 $ 8,492 $ 247 Commercial real estate 195 200 — — — — — Home equity line of credit 1,984 2,135 — 1,940 54 2,238 66 Residential land 3,091 3,294 — 2,280 24 2,158 50 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 1,948 2,285 — 4,626 — 4,299 — Consumer 2 2 — 31 — 31 — $ 14,037 $ 15,123 $ — $ 17,870 $ 165 $ 17,218 $ 363 With an allowance recorded Real estate: Residential 1-4 family $ 8,783 $ 8,835 $ 898 $ 8,440 $ 96 $ 8,417 $ 179 Commercial real estate 853 853 2 894 9 900 19 Home equity line of credit 10,089 10,099 322 11,665 152 11,743 282 Residential land — — — 79 — 54 — Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 6,470 6,470 1,015 10,997 30 7,874 56 Consumer 505 505 454 288 1 173 2 $ 26,700 $ 26,762 $ 2,691 $ 32,363 $ 288 $ 29,161 $ 538 Total Real estate: Residential 1-4 family $ 15,600 $ 16,042 $ 898 $ 17,433 $ 183 $ 16,909 $ 426 Commercial real estate 1,048 1,053 2 894 9 900 19 Home equity line of credit 12,073 12,234 322 13,605 206 13,981 348 Residential land 3,091 3,294 — 2,359 24 2,212 50 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 8,418 8,755 1,015 15,623 30 12,173 56 Consumer 507 507 454 319 1 204 2 $ 40,737 $ 41,885 $ 2,691 $ 50,233 $ 453 $ 46,379 $ 901 * Since loan was classified as impaired. |
Schedule of amortized intangible assets | Changes in the carrying value of MSRs were as follows: (in thousands) Gross carrying amount 1 Accumulated amortization Valuation allowance Net June 30, 2020 $ 23,904 $ (13,993) $ (264) $ 9,647 December 31, 2019 21,543 (12,442) — 9,101 1 Reflects impact of loans paid in full Changes related to MSRs were as follows: Three months ended June 30, Six months ended June 30 (in thousands) 2020 2019 2020 2019 Mortgage servicing rights Beginning balance $ 9,120 $ 7,897 $ 9,101 $ 8,062 Amount capitalized 1,726 632 2,362 862 Amortization (935) (426) (1,552) (821) Other-than-temporary impairment — — — — Carrying amount before valuation allowance 9,911 8,103 9,911 8,103 Valuation allowance for mortgage servicing rights Beginning balance — — — — Provision (recovery) 264 — 264 — Other-than-temporary impairment — — — — Ending balance 264 — 264 — Net carrying value of mortgage servicing rights $ 9,647 $ 8,103 $ 9,647 $ 8,103 |
Schedule of key assumptions used in estimating fair value | Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows: (dollars in thousands) June 30, 2020 December 31, 2019 Unpaid principal balance $ 1,360,920 $ 1,276,437 Weighted average note rate 3.87 % 3.96 % Weighted average discount rate 9.3 % 9.3 % Weighted average prepayment speed 16.9 % 11.4 % The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) ($ in thousands) Fair value Valuation technique Significant unobservable input Range Weighted June 30, 2020 Mortgage servicing rights $ 5,419 Discounted cash flow Prepayment Speed 13.9% - 18.4% 16.6 % Discount rate 9.3 % 9.3 % 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 (1) Represents 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, transferor's interests in transferred financial assets | The sensitivity analysis of fair value of MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows: (dollars in thousands) June 30, 2020 December 31, 2019 Prepayment rate: 25 basis points adverse rate change $ (539) $ (950) 50 basis points adverse rate change (1,062) (1,947) Discount rate: 25 basis points adverse rate change (64) (102) 50 basis points adverse rate change (128) (202) |
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 Gross amount Net amount of Repurchase agreements June 30, 2020 $ 95 $ — $ 95 December 31, 2019 115 — 115 Gross amount not offset in the Balance Sheets (in millions) Net amount of liabilities presented Financial Cash Commercial account holders June 30, 2020 $ 95 $ 143 $ — December 31, 2019 115 130 — |
Schedule of notional and fair value of derivatives | The notional amount and fair value of ASB’s derivative financial instruments were as follows: June 30, 2020 December 31, 2019 (in thousands) Notional amount Fair value Notional amount Fair value Interest rate lock commitments $ 70,190 $ 2,341 $ 23,171 $ 297 Forward commitments 57,750 (287) 29,383 (42) |
Schedule of derivative financial instruments | ASB’s derivative financial instruments, their fair values and balance sheet location were as follows: Derivative Financial Instruments Not Designated as Hedging Instruments 1 June 30, 2020 December 31, 2019 (in thousands) Asset derivatives Liability Asset derivatives Liability Interest rate lock commitments $ 2,341 $ — $ 297 $ — Forward commitments — 287 3 45 $ 2,341 $ 287 $ 300 $ 45 1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the balance sheets. |
Schedule of derivative financial instruments and net gain or loss | The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in ASB’s statements of income: Derivative Financial Instruments Not Designated as Hedging Instruments Location of net gains (losses) recognized in the Statements of Income Three months ended June 30, Six months ended June 30 (in thousands) 2020 2019 2020 2019 Interest rate lock commitments Mortgage banking income $ 489 $ 11 $ 2,044 $ 382 Forward commitments Mortgage banking income 298 46 (245) (72) $ 787 $ 57 $ 1,799 $ 310 |
Credit agreements and changes i
Credit agreements and changes in debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Note Purchase Agreements | On May 14, 2020, the Utilities issued, through a private placement pursuant to separate Note Purchase Agreements (the Note Purchase Agreements), the following unsecured senior notes bearing taxable interest (the Notes): Series 2020A Series 2020B Series 2020C Aggregate principal amount $80 million $60 million $20 million Fixed coupon interest rate Hawaiian Electric 3.31% 3.31% 3.96% Hawaii Electric Light 3.96% Maui Electric 3.31% 3.96% Maturity date Hawaiian Electric 5/1/2030 5/1/2030 5/1/2050 Hawaii Electric Light 5/1/2050 Maui Electric 5/1/2030 5/1/2050 Principal amount by company: Hawaiian Electric $50 million (Green Bond) $40 million $20 million Hawaii Electric Light $10 million — — Maui Electric $20 million 20 million — |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 AOCI-Retirement benefit plans Balance, December 31, 2019 $ 2,481 $ (1,613) $ (20,907) $ (20,039) $ (1,279) Current period other comprehensive income (loss) 18,783 (1,982) 1,079 17,880 51 Balance, June 30, 2020 $ 21,264 $ (3,595) $ (19,828) $ (2,159) $ (1,228) Balance, December 31, 2018 $ (24,423) $ (436) $ (25,751) $ (50,610) $ 99 Current period other comprehensive income (loss) 23,593 (1,063) 410 22,940 47 Balance, June 30, 2019 $ (830) $ (1,499) $ (25,341) $ (27,670) $ 146 |
Schedule of reclassifications out of accumulated other comprehensive income/(loss) | Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Three months ended June 30 Six months ended June 30 Affected line item in the (in thousands) 2020 2019 2020 2019 Statements of Income / Balance Sheets HEI consolidated Net realized gains on securities included in net income $ (1,638) $ — $ (1,638) $ — Gain on sale of investment securities, net Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 5,690 2,503 11,396 5,006 See Note 8 for additional details Impact of D&Os of the PUC included in regulatory assets (5,159) (2,298) (10,317) (4,596) See Note 8 for additional details Total reclassifications $ (1,107) $ 205 $ (559) $ 410 Hawaiian Electric consolidated Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost $ 5,184 $ 2,321 $ 10,368 $ 4,643 See Note 8 for additional details Impact of D&Os of the PUC included in regulatory assets (5,159) (2,298) (10,317) (4,596) See Note 8 for additional details Total reclassifications $ 25 $ 23 $ 51 $ 47 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following tables disaggregate revenues by major source, timing of revenue recognition, and segment: Three months ended June 30, 2020 Six months ended June 30, 2020 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 187,590 $ — $ — $ 187,590 $ 377,856 $ — $ — $ 377,856 Electric energy sales - commercial 159,874 — — 159,874 356,979 — — 356,979 Electric energy sales - large light and power 176,467 — — 176,467 392,687 — — 392,687 Electric energy sales - other 1,779 — — 1,779 5,237 — — 5,237 Bank fees — 7,211 — 7,211 — 18,767 — 18,767 Total revenues from contracts with customers 525,710 7,211 — 532,921 1,132,759 18,767 — 1,151,526 Revenues from other sources Regulatory revenue 2,826 — — 2,826 (12,478) — — (12,478) Bank interest and dividend income — 59,829 — 59,829 — 124,804 — 124,804 Other bank noninterest income — 7,674 — 7,674 — 10,881 — 10,881 Other 5,679 — 16 5,695 11,376 — 22 11,398 Total revenues from other sources 8,505 67,503 16 76,024 (1,102) 135,685 22 134,605 Total revenues $ 534,215 $ 74,714 $ 16 $ 608,945 $ 1,131,657 $ 154,452 $ 22 $ 1,286,131 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 7,211 $ — $ 7,211 $ — $ 18,767 $ — $ 18,767 Services/goods transferred over time 525,710 — — 525,710 1,132,759 — — 1,132,759 Total revenues from contracts with customers $ 525,710 $ 7,211 $ — $ 532,921 $ 1,132,759 $ 18,767 $ — $ 1,151,526 Three months ended June 30, 2019 Six months ended June 30, 2019 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 195,868 $ — $ — $ 195,868 $ 371,613 $ — $ — $ 371,613 Electric energy sales - commercial 217,278 — — 217,278 404,686 — — 404,686 Electric energy sales - large light and power 231,869 — — 231,869 430,795 — — 430,795 Electric energy sales - other 3,774 — — 3,774 7,852 — — 7,852 Bank fees — 11,632 — 11,632 — 22,865 — 22,865 Total revenues from contracts with customers 648,789 11,632 — 660,421 1,214,946 22,865 — 1,237,811 Revenues from other sources Regulatory revenue (20,360) — — (20,360) (14,153) — — (14,153) Bank interest and dividend income — 66,155 — 66,155 — 134,643 — 134,643 Other bank noninterest income — 3,900 — 3,900 — 7,231 — 7,231 Other 5,355 — 14 5,369 11,486 — 82 11,568 Total revenues from other sources (15,005) 70,055 14 55,064 (2,667) 141,874 82 139,289 Total revenues $ 633,784 $ 81,687 $ 14 $ 715,485 $ 1,212,279 $ 164,739 $ 82 $ 1,377,100 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 11,632 $ — $ 11,632 $ — $ 22,865 $ — $ 22,865 Services/goods transferred over time 648,789 — — 648,789 1,214,946 — — 1,214,946 Total revenues from contracts with customers $ 648,789 $ 11,632 $ — $ 660,421 $ 1,214,946 $ 22,865 $ — $ 1,237,811 |
Retirement benefits (Tables)
Retirement benefits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit cost for consolidated HEI | The components of net periodic pension costs (NPPC) and net periodic benefit costs (NPBC) for HEI consolidated and Hawaiian Electric consolidated were as follows: Three months ended June 30 Six months ended June 30 Pension benefits Other benefits Pension benefits Other benefits (in thousands) 2020 2019 2020 2019 2020 2019 2020 2019 HEI consolidated Service cost $ 18,362 $ 15,382 $ 631 $ 542 $ 36,725 $ 30,764 $ 1,262 $ 1,083 Interest cost 20,164 21,033 1,856 1,997 40,327 42,066 3,711 3,994 Expected return on plan assets (28,465) (27,999) (3,039) (3,086) (56,931) (55,997) (6,077) (6,172) Amortization of net prior period (gain)/cost 2 (11) (441) (452) 5 (22) (881) (904) Amortization of net actuarial (gains)/losses 8,058 3,839 51 (4) 16,115 7,678 101 (7) Net periodic pension/benefit cost (return) 18,121 12,244 (942) (1,003) 36,241 24,489 (1,884) (2,006) Impact of PUC D&Os 6,261 12,278 777 811 12,523 24,557 1,554 1,622 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 24,382 $ 24,522 $ (165) $ (192) $ 48,764 $ 49,046 $ (330) $ (384) Hawaiian Electric consolidated Service cost $ 17,891 $ 15,001 $ 625 $ 538 $ 35,782 $ 30,002 $ 1,251 $ 1,075 Interest cost 18,715 19,414 1,781 1,918 37,430 38,828 3,563 3,835 Expected return on plan assets (26,857) (26,164) (2,990) (3,036) (53,712) (52,328) (5,980) (6,071) Amortization of net prior period (gain)/cost 3 2 (439) (451) 5 4 (879) (902) Amortization of net actuarial losses 7,369 3,576 51 — 14,737 7,152 102 — Net periodic pension/benefit cost (return) 17,121 11,829 (972) (1,031) 34,242 23,658 (1,943) (2,063) Impact of PUC D&Os 6,261 12,278 777 811 12,523 24,557 1,554 1,622 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 23,382 $ 24,107 $ (195) $ (220) $ 46,765 $ 48,215 $ (389) $ (441) |
Share-based compensation (Table
Share-based compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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: Three months ended June 30 Six months ended June 30 (in millions) 2020 2019 2020 2019 HEI consolidated Share-based compensation expense 1 $ 2.4 $ 3.7 $ 4.1 $ 5.9 Income tax benefit 0.4 0.7 0.7 0.9 Hawaiian Electric consolidated Share-based compensation expense 1 0.4 1.1 1.2 1.8 Income tax benefit 0.1 0.2 0.2 0.3 1 For the three and six months ended June 30, 2020 and 2019, the Company has not capitalized any share-based compensation. |
Schedule of common stock granted to a nonemployee director under the 2011 Director Plan | HEI granted HEI common stock to nonemployee directors under the 2011 Director Plan as follows: Three months ended June 30 Six months ended June 30 (dollars in millions) 2020 2019 2020 2019 Shares granted 35,632 35,580 36,100 35,580 Fair value $ 1.3 $ 1.5 $ 1.3 $ 1.5 Income tax benefit 0.3 0.4 0.3 0.4 |
Schedule of restricted stock units | Information about HEI’s grants of restricted stock units was as follows: Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 203,441 $ 40.67 211,225 $ 35.28 207,641 $ 35.36 200,358 $ 33.05 Granted 916 37.90 — — 78,595 47.99 94,559 37.68 Vested — — — — (77,719) 34.19 (76,712) 32.61 Forfeited — — (2,600) 35.56 (4,160) 35.81 (9,580) 33.82 Outstanding, end of period 204,357 $ 40.65 208,625 $ 35.28 204,357 $ 40.65 208,625 $ 35.28 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ — $ 3.8 $ 3.6 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Schedule of Long-Term Incentive Plan (LTIP) linked to total return to shareholders | Information about HEI’s LTIP grants linked to TSR was as follows: Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 90,616 $ 42.08 98,311 $ 39.61 96,402 $ 39.62 65,578 $ 38.81 Granted — — — — 24,630 48.62 34,647 41.07 Vested (issued or unissued and cancelled) — — — — (29,409) 39.51 — — Forfeited — — — — (1,007) 41.72 (1,914) 38.62 Outstanding, end of period 90,616 $ 42.08 98,311 $ 39.61 90,616 $ 42.08 98,311 $ 39.61 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ — $ 1.2 $ 1.4 (1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. |
Schedule of Long-Term Incentive Plan assumptions | 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: 2020 2019 Risk-free interest rate 1.39 % 2.48 % Expected life in years 3 3 Expected volatility 13.1 % 15.8 % Range of expected volatility for Peer Group 13.6% to 95.4% 15.0% to 73.2% Grant date fair value (per share) $48.62 $41.07 |
Schedule of Long-Term Incentive Plan (LTIP) linked to other performance conditions | Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: Three months ended June 30 Six months ended June 30 2020 2019 2020 2019 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 336,344 $ 39.64 407,090 $ 35.12 403,768 $ 35.15 276,169 $ 33.80 Granted — — — — 98,522 48.10 138,580 37.68 Vested — — — — (135,804) 33.48 — — Increase above target (cancelled) (38,821) 34.12 — — (64,932) 34.12 — — Forfeited — — — — (4,031) 39.67 (7,659) 33.91 Outstanding, end of period 297,523 $ 40.37 407,090 $ 35.12 297,523 $ 40.37 407,090 $ 35.12 Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) $ — $ — $ 4.7 $ 5.2 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Cash flows (Tables)
Cash flows (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash and noncash activity | Six months ended June 30 2020 2019 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates, net of amounts capitalized $ 50 $ 53 Income taxes paid (including refundable credits) — 46 Income taxes refunded (including refundable credits) — 4 Hawaiian Electric consolidated Interest paid to non-affiliates 32 34 Income taxes paid (including refundable credits) — 46 Income taxes refunded (including refundable credits) — 4 Supplemental disclosures of noncash activities HEI consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 3 1 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 34 30 Reduction of long-term debt from funds previously transferred for repayment (financing) 82 — Right-of-use assets obtained in exchange for operating lease obligations (investing) 20 2 Common stock issued (gross) for director and executive/management compensation (financing) 1 16 5 Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) — 9 Obligations to fund low income housing investments (investing) — 6 Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 3 1 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 30 27 Reduction of long-term debt from funds previously transferred for repayment (financing) 82 — Right-of-use assets obtained in exchange for operating lease obligations (investing) 16 1 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) | 6 Months Ended |
Jun. 30, 2020 | |
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 Significant Significant Total June 30, 2020 Financial assets HEI consolidated Available-for-sale investment securities $ 1,389,633 $ — $ 1,360,806 $ 28,827 $ 1,389,633 Held-to-maturity investment securities 124,623 — 131,131 — 131,131 Stock in Federal Home Loan Bank 9,880 — 9,880 — 9,880 Loans, net 5,393,653 — 37,345 5,540,050 5,577,395 Mortgage servicing rights 9,647 — — 10,328 10,328 Derivative assets 70,190 — 2,341 — 2,341 Financial liabilities HEI consolidated Deposit liabilities 657,627 — 663,296 — 663,296 Short-term borrowings—other than bank 131,180 — 131,180 — 131,180 Other bank borrowings 124,975 — 124,966 — 124,966 Long-term debt, net—other than bank 2,070,224 — 2,427,374 — 2,427,374 Derivative liabilities 81,861 287 4,843 — 5,130 Hawaiian Electric consolidated Short-term borrowings 49,919 — 49,919 — 49,919 Long-term debt, net 1,574,955 — 1,895,365 — 1,895,365 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 |
Schedule of assets measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis were as follows: June 30, 2020 December 31, 2019 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 $ — $ 1,226,985 $ — $ — $ 1,026,385 $ — U.S. Treasury and federal agency obligations — 102,414 — — 117,787 — Corporate bonds — 31,407 — — 60,057 — Mortgage revenue bonds — — 28,827 — — 28,597 $ — $ 1,360,806 $ 28,827 $ — $ 1,204,229 $ 28,597 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 2,341 $ — $ — $ 297 $ — Forward commitments (bank segment) 1 — — — — 3 — $ — $ 2,341 $ — $ — $ 300 $ — Derivative liabilities Forward commitments (bank segment) 1 $ 287 $ — $ — $ 33 $ 12 $ — Interest rate swap (Other segment) 2 — 4,843 — — 2,173 — $ 287 $ 4,843 $ — $ 33 $ 2,185 $ — 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 changes in Level 3 assets and liabilities measured at fair value on a recurring basis | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: Three months ended June 30 Six months ended June 30 Mortgage revenue bonds 2020 2019 2020 2019 (in thousands) Beginning balance $ 28,726 $ 27,970 $ 28,597 $ 23,636 Principal payments received — — — — Purchases 101 196 230 4,530 Unrealized gain (loss) included in other comprehensive income — — — — Ending balance $ 28,827 $ 28,166 $ 28,827 $ 28,166 |
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 June 30, 2020 Mortgage servicing rights $ 5,419 $ — $ — $ 5,419 December 31, 2019 Loans 25 — — 25 |
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: (dollars in thousands) June 30, 2020 December 31, 2019 Unpaid principal balance $ 1,360,920 $ 1,276,437 Weighted average note rate 3.87 % 3.96 % Weighted average discount rate 9.3 % 9.3 % Weighted average prepayment speed 16.9 % 11.4 % The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) ($ in thousands) Fair value Valuation technique Significant unobservable input Range Weighted June 30, 2020 Mortgage servicing rights $ 5,419 Discounted cash flow Prepayment Speed 13.9% - 18.4% 16.6 % Discount rate 9.3 % 9.3 % 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 (1) Represents percent of outstanding principal balance. (2) N/A - Not applicable. There is one asset in each fair value measurement type. |
Basis of presentation (Details)
Basis of presentation (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss | $ 81,307 | $ 53,355 | $ 77,084 | $ 58,425 | $ 54,297 | $ 52,119 | |
Allowance for loan commitments | 8,100 | 1,741 | 3,800 | ||||
Retained earnings | $ 622,042 | 616,941 | 622,042 | ||||
Loans held for investment, net | 5,067,821 | 5,356,510 | 5,067,821 | ||||
Total assets | 13,745,251 | 14,480,700 | 13,745,251 | ||||
Deferred income taxes | 379,324 | 368,834 | 379,324 | ||||
Other | 583,545 | 580,082 | 583,545 | ||||
Total liabilities | 11,430,698 | 12,155,009 | 11,430,698 | ||||
Total shareholders’ equity | 2,280,260 | 2,291,398 | 2,280,260 | $ 2,208,586 | $ 2,183,515 | $ 2,162,280 | |
Total liabilities and shareholders' equity | $ 13,745,251 | $ 14,480,700 | $ 13,745,251 | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | ||||
As reported under ASU No. 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | $ 606,670 | ||||||
Loans held for investment, net | 5,048,380 | ||||||
Total assets | 13,725,810 | ||||||
Deferred income taxes | 373,696 | ||||||
Other | 585,104 | ||||||
Total liabilities | 11,426,629 | ||||||
Total shareholders’ equity | 2,264,888 | $ 2,264,888 | $ 2,276,505 | ||||
Total liabilities and shareholders' equity | 13,725,810 | ||||||
Impact of ASU No. 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss | 21,000 | 19,441 | |||||
Allowance for loan commitments | 2,000 | 1,559 | |||||
Retained earnings | (15,372) | ||||||
Loans held for investment, net | (19,441) | ||||||
Total assets | (19,441) | ||||||
Deferred income taxes | (5,628) | ||||||
Other | 1,559 | ||||||
Total liabilities | (4,069) | ||||||
Total shareholders’ equity | (15,372) | $ (15,372) | |||||
Total liabilities and shareholders' equity | $ (19,441) |
Segment financial information_2
Segment financial information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | |
Segment financial information | ||||||||
Total revenues | $ 608,945 | $ 715,485 | $ 1,286,131 | $ 1,377,100 | ||||
Income (loss) before income taxes | 60,230 | 52,694 | 99,926 | 110,733 | ||||
Income taxes (benefit) | 10,870 | 9,709 | 16,673 | 21,587 | ||||
Net income | 49,360 | 42,985 | 83,253 | 89,146 | ||||
Preferred stock dividends of subsidiaries | 473 | 473 | 946 | 946 | ||||
Net income for common stock | 48,887 | $ 33,420 | 42,512 | $ 45,688 | 82,307 | 88,200 | ||
Total assets | 14,480,700 | 14,480,700 | $ 13,745,251 | $ 13,745,251 | ||||
Revenues from external customers | ||||||||
Segment financial information | ||||||||
Total revenues | 608,945 | 715,485 | 1,286,131 | 1,377,100 | ||||
Intersegment revenues (eliminations) | ||||||||
Segment financial information | ||||||||
Total revenues | 0 | 0 | 0 | 0 | ||||
Electric utility | ||||||||
Segment financial information | ||||||||
Total revenues | 534,215 | 633,784 | 1,131,657 | 1,212,279 | ||||
Income (loss) before income taxes | 53,027 | 40,817 | 82,713 | 82,676 | ||||
Income taxes (benefit) | 10,199 | 7,744 | 15,481 | 16,978 | ||||
Net income | 42,828 | 33,073 | 67,232 | 65,698 | ||||
Preferred stock dividends of subsidiaries | 499 | 499 | 998 | 998 | ||||
Net income for common stock | 42,329 | 32,574 | 66,234 | 64,700 | ||||
Total assets | 6,332,007 | 6,332,007 | 6,388,682 | |||||
Electric utility | Revenues from external customers | ||||||||
Segment financial information | ||||||||
Total revenues | 534,206 | 633,771 | 1,131,636 | 1,212,253 | ||||
Electric utility | Intersegment revenues (eliminations) | ||||||||
Segment financial information | ||||||||
Total revenues | 9 | 13 | 21 | 26 | ||||
Bank | ||||||||
Segment financial information | ||||||||
Total revenues | 74,714 | 81,687 | 154,452 | 164,739 | ||||
Income (loss) before income taxes | 17,334 | 21,292 | 36,303 | 47,454 | ||||
Income taxes (benefit) | 3,320 | 4,276 | 6,528 | 9,599 | ||||
Net income | 14,014 | 17,016 | 29,775 | 37,855 | ||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income for common stock | 14,014 | 17,016 | 29,775 | 37,855 | ||||
Total assets | 8,019,665 | 8,019,665 | 7,233,017 | |||||
Bank | Revenues from external customers | ||||||||
Segment financial information | ||||||||
Total revenues | 74,714 | 81,687 | 154,452 | 164,739 | ||||
Bank | Intersegment revenues (eliminations) | ||||||||
Segment financial information | ||||||||
Total revenues | 0 | 0 | 0 | 0 | ||||
Other | ||||||||
Segment financial information | ||||||||
Total revenues | 16 | 14 | 22 | 82 | ||||
Income (loss) before income taxes | (10,131) | (9,415) | (19,090) | (19,397) | ||||
Income taxes (benefit) | (2,649) | (2,311) | (5,336) | (4,990) | ||||
Net income | (7,482) | (7,104) | (13,754) | (14,407) | ||||
Preferred stock dividends of subsidiaries | (26) | (26) | (52) | (52) | ||||
Net income for common stock | (7,456) | (7,078) | (13,702) | (14,355) | ||||
Total assets | 129,028 | 129,028 | $ 123,552 | |||||
Other | Revenues from external customers | ||||||||
Segment financial information | ||||||||
Total revenues | 25 | 27 | 43 | 108 | ||||
Other | Intersegment revenues (eliminations) | ||||||||
Segment financial information | ||||||||
Total revenues | $ (9) | $ (13) | $ (21) | $ (26) |
Electric utility segment - Unco
Electric utility segment - Unconsolidated variable interest entities (Details) | 6 Months Ended |
Jun. 30, 2020agreemententity | |
Power purchase agreement | |
Number of IPPs | 3 |
Hawaiian Electric Company | |
Power purchase agreement | |
Number of power purchase agreements (PPAs) (in agreements) | agreement | 4 |
Number of firm capacity producers declining to provide financial information to determine primary beneficiary status (in entities) | 2 |
Minimum potential number of IPP entities consolidated into company in the future (in entities) | 1 |
Electric utility segment - Powe
Electric utility segment - Power purchase agreements (Details) - Hawaiian Electric (parent only) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | $ 137 | $ 162 | $ 277 | $ 296 |
Kalaeloa | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | 34 | 61 | 72 | 101 |
AES Hawaii | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | 32 | 32 | 63 | 64 |
HPOWER | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | 17 | 19 | 34 | 37 |
Hamakua Energy | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | 11 | 18 | 24 | 34 |
Wind IPPs | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | 25 | 23 | 53 | 43 |
Solar IPPs | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | 17 | 8 | 28 | 15 |
Other IPPs | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | $ 1 | $ 1 | $ 3 | $ 2 |
Electric utility segment - Comm
Electric utility segment - Commitments and contingencies (Details) $ in Millions | Jun. 10, 2019USD ($) | Jan. 31, 2020 | Jun. 30, 2015MW | May 31, 2012MW | Mar. 31, 1988MW | Dec. 31, 1988MW | Jun. 30, 2020USD ($) |
Regulatory Projects and Legal Obligations [Line Items] | |||||||
ERP/EAM project service period (in years) | 12 years | 12 years | |||||
Project costs, accrued carrying costs once put into service | $ 59.4 | ||||||
Project costs, amortization | 0.3 | ||||||
Future O&M expense reductions | $ 150 | ||||||
Future cost avoidance related to capital cost and tax costs | $ 96 | ||||||
AES Hawaii | |||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||
Purchase commitment, period (in years) | 30 years | ||||||
Minimum power volume required (in megawatts) | MW | 180 | ||||||
Additional capacity requirement (in megawatts) | MW | 9 | ||||||
Hu Honua Bioenergy, LLC | |||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||
Minimum power volume required (in megawatts) | MW | 21.5 | ||||||
Hawaiian Electric (parent only) | PCB Contamination | |||||||
Environmental regulation | |||||||
Valuation allowances and reserves | 4.8 | ||||||
Maui Electric | |||||||
Environmental regulation | |||||||
Additional accrued investigation and estimated cleanup costs | 2.7 | ||||||
ERP/EAM Implementation Project | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||
Regulatory liability for O&M expense reductions | $ 7.2 | ||||||
Kalaeloa | Hawaiian Electric (parent only) | |||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||
Increased power purchase commitment capacity (in megawatts) | MW | 208 |
Electric utility segment - Regu
Electric utility segment - Regulatory Proceedings (Details) | Jun. 05, 2020USD ($) | Feb. 07, 2020USD ($) | Apr. 27, 2017USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019$ / kWh | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($)entity | Jul. 09, 2020entity |
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Decoupling order, service reliability performance, historical measurement period (in years) | 10 years | |||||||
Service reliability, pending adjusted maximum penalty amount | $ 6,800,000 | |||||||
Dead band percentage above or below the target | 3.00% | |||||||
Call center performance, pending adjusted maximum penalty | $ 1,400,000 | |||||||
Energy price, renewable projects with storage capacity (in dollars per kilowatt hour) | $ / kWh | 0.115 | |||||||
Energy price, renewable energy-only projects (in dollars per kilowatt hour) | $ / kWh | 0.095 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Threshold of capital expenditures in excess of contributions | $ 2,500,000 | |||||||
MPIR requested amount | $ 23,600,000 | $ 19,800,000 | ||||||
Maximum penalty, percent of ROE | 0.20% | |||||||
Call center performance, maximum penalty percentage | 0.08% | |||||||
Call center performance, maximum penalty amount | $ 300,000 | |||||||
Performance incentive mechanism, incentive cap | $ 3,500,000 | |||||||
Number of power purchase agreements (PPAs) (in agreements) | entity | 7 | |||||||
Incentives accrued | $ 1,700,000 | $ 1,700,000 | ||||||
Subsequent Event | Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Number of grid service purchase agreements | entity | 2 | |||||||
Grid Modernization Strategy Phase 1 Project | Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
MPIR requested amount | $ 600,000 | |||||||
Schofield Generation Station | Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
MPIR requested amount | $ 19,200,000 | |||||||
West Loch PV Project | Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
MPIR requested amount | $ 3,800,000 |
Electric utility segment - Annu
Electric utility segment - Annual decoupling filings summary (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Regulatory Projects and Legal Obligations [Line Items] | |
2019 Annual incremental RAM adjusted revenues | $ 29.5 |
Annual change in accrued RBA balance as of December 31, 2019 (and associated revenue taxes) which incorporates MPIR recovery | (67.4) |
Incremental Performance Incentive Mechanisms (net) | 2 |
Net annual incremental amount to be collected (refunded) under the tariffs | (35.9) |
Hawaiian Electric (parent only) | |
Regulatory Projects and Legal Obligations [Line Items] | |
2019 Annual incremental RAM adjusted revenues | 20.6 |
Annual change in accrued RBA balance as of December 31, 2019 (and associated revenue taxes) which incorporates MPIR recovery | (46.5) |
Incremental Performance Incentive Mechanisms (net) | 2.2 |
Net annual incremental amount to be collected (refunded) under the tariffs | (23.7) |
HELCO | |
Regulatory Projects and Legal Obligations [Line Items] | |
2019 Annual incremental RAM adjusted revenues | 3.2 |
Annual change in accrued RBA balance as of December 31, 2019 (and associated revenue taxes) which incorporates MPIR recovery | (9.9) |
Incremental Performance Incentive Mechanisms (net) | (0.1) |
Net annual incremental amount to be collected (refunded) under the tariffs | (6.8) |
Maui Electric | |
Regulatory Projects and Legal Obligations [Line Items] | |
2019 Annual incremental RAM adjusted revenues | 5.7 |
Annual change in accrued RBA balance as of December 31, 2019 (and associated revenue taxes) which incorporates MPIR recovery | (11) |
Incremental Performance Incentive Mechanisms (net) | (0.1) |
Net annual incremental amount to be collected (refunded) under the tariffs | $ (5.4) |
Electric utility segment - Rate
Electric utility segment - Rate proceedings (Details) - USD ($) $ in Thousands | May 13, 2020 | Nov. 13, 2019 | Jun. 30, 2020 | Dec. 31, 2019 |
Regulatory Projects and Legal Obligations [Line Items] | ||||
Regulatory assets | $ 682,570 | $ 715,080 | ||
Hawaiian Electric (parent only) | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Timeframe to acquire annual savings | 3 years | |||
Proposed annual savings | $ 25,000 | |||
Proposed annual savings, capital, percentage | 80.00% | |||
Proposed annual savings, operations and maintenance, percentage | 20.00% | |||
HELCO | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Interim revenue requirement | $ 387,000 | |||
Rate base | $ 534,000 | |||
Effective interest rate of return | 7.52% | |||
Stipulated ROACE rate | 9.50% | |||
Common equity capitalization rate | 58.00% | |||
Amortization period for state investment tax credit | 10 years | |||
Risk sharing percentage, ratepayer | 98.00% | |||
Maximum exposure cap | $ 600 | |||
Proposed final tariffs and revised tariff period | 30 days | |||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Regulatory assets | $ 6,500 |
Electric utility segment - Cond
Electric utility segment - Condensed consolidating statement of income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Income Statements, Captions [Line Items] | ||||||
Revenues | $ 608,945 | $ 715,485 | $ 1,286,131 | $ 1,377,100 | ||
Expenses | ||||||
Total expenses | 537,389 | 642,851 | 1,154,873 | 1,226,529 | ||
Total operating income | 71,556 | 72,634 | 131,258 | 150,571 | ||
Allowance for equity funds used during construction | 2,194 | 3,175 | 4,209 | 6,085 | ||
Retirement defined benefits expense—other than service costs | (934) | (761) | (1,868) | (1,524) | ||
Allowance for borrowed funds used during construction | 752 | 1,179 | 1,440 | 2,257 | ||
Income before income taxes | 60,230 | 52,694 | 99,926 | 110,733 | ||
Income taxes | 10,870 | 9,709 | 16,673 | 21,587 | ||
Net income | 49,360 | 42,985 | 83,253 | 89,146 | ||
Preferred stock dividends of subsidiaries | 473 | 473 | 946 | 946 | ||
Net income for common stock | 48,887 | $ 33,420 | 42,512 | $ 45,688 | 82,307 | 88,200 |
Consolidating adjustments | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenues | (140) | (202) | (355) | (234) | ||
Expenses | ||||||
Fuel oil | 0 | 0 | 0 | 0 | ||
Purchased power | 0 | 0 | 0 | 0 | ||
Other operation and maintenance | 0 | 0 | 0 | 0 | ||
Depreciation | 0 | 0 | 0 | 0 | ||
Taxes, other than income taxes | 0 | 0 | 0 | 0 | ||
Total expenses | 0 | 0 | 0 | 0 | ||
Total operating income | (140) | (202) | (355) | (234) | ||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 | ||
Equity in earnings of subsidiaries | (13,776) | (8,086) | (22,580) | (19,935) | ||
Retirement defined benefits expense—other than service costs | 0 | 0 | 0 | 0 | ||
Interest expense and other charges, net | 140 | 202 | 355 | 234 | ||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | 0 | ||
Income before income taxes | (13,776) | (8,086) | (22,580) | (19,935) | ||
Income taxes | 0 | 0 | 0 | |||
Net income | (13,776) | (8,086) | (22,580) | (19,935) | ||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | |||
Net income attributable to Hawaiian Electric | (13,776) | (8,086) | (22,580) | (19,935) | ||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||
Net income for common stock | (13,776) | (8,086) | (22,580) | (19,935) | ||
Hawaiian Electric (parent only) | ||||||
Expenses | ||||||
Purchased power | 137,000 | 162,000 | 277,000 | 296,000 | ||
Hawaiian Electric (parent only) | Reportable Legal Entities | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenues | 380,634 | 450,020 | 801,800 | 855,689 | ||
Expenses | ||||||
Fuel oil | 77,290 | 125,431 | 197,825 | 234,353 | ||
Purchased power | 108,946 | 126,871 | 216,897 | 232,094 | ||
Other operation and maintenance | 74,274 | 78,551 | 159,911 | 159,729 | ||
Depreciation | 37,860 | 35,868 | 75,871 | 71,735 | ||
Taxes, other than income taxes | 36,673 | 42,590 | 77,174 | 81,221 | ||
Total expenses | 335,043 | 409,311 | 727,678 | 779,132 | ||
Total operating income | 45,591 | 40,709 | 74,122 | 76,557 | ||
Allowance for equity funds used during construction | 1,807 | 2,614 | 3,550 | 5,061 | ||
Equity in earnings of subsidiaries | 13,776 | 8,086 | 22,580 | 19,935 | ||
Retirement defined benefits expense—other than service costs | (546) | (567) | (1,092) | (1,134) | ||
Interest expense and other charges, net | (12,499) | (13,390) | (24,501) | (26,190) | ||
Allowance for borrowed funds used during construction | 626 | 962 | 1,228 | 1,864 | ||
Income before income taxes | 48,755 | 38,414 | 75,887 | 76,093 | ||
Income taxes | 6,156 | 5,570 | 9,113 | 10,853 | ||
Net income | 42,599 | 32,844 | 66,774 | 65,240 | ||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 | ||
Net income attributable to Hawaiian Electric | 42,599 | 32,844 | 66,774 | 65,240 | ||
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 540 | 540 | ||
Net income for common stock | 42,329 | 32,574 | 66,234 | 64,700 | ||
HELCO | Reportable Legal Entities | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenues | 78,505 | 89,916 | 167,798 | 177,121 | ||
Expenses | ||||||
Fuel oil | 16,254 | 19,941 | 38,686 | 40,783 | ||
Purchased power | 15,846 | 24,029 | 35,367 | 43,206 | ||
Other operation and maintenance | 17,581 | 18,031 | 36,685 | 36,767 | ||
Depreciation | 9,761 | 10,453 | 19,521 | 20,906 | ||
Taxes, other than income taxes | 7,470 | 8,706 | 15,812 | 16,811 | ||
Total expenses | 66,912 | 81,160 | 146,071 | 158,473 | ||
Total operating income | 11,593 | 8,756 | 21,727 | 18,648 | ||
Allowance for equity funds used during construction | 193 | 218 | 312 | 350 | ||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||
Retirement defined benefits expense—other than service costs | 193 | (105) | 387 | (211) | ||
Interest expense and other charges, net | (2,533) | (2,920) | (5,017) | (5,821) | ||
Allowance for borrowed funds used during construction | 62 | 91 | 98 | 147 | ||
Income before income taxes | 9,508 | 6,040 | 17,507 | 13,113 | ||
Income taxes | 2,196 | 1,241 | 3,994 | 3,011 | ||
Net income | 7,312 | 4,799 | 13,513 | 10,102 | ||
Preferred stock dividends of subsidiaries | 133 | 133 | 267 | 267 | ||
Net income attributable to Hawaiian Electric | 7,179 | 4,666 | 13,246 | 9,835 | ||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||
Net income for common stock | 7,179 | 4,666 | 13,246 | 9,835 | ||
Maui Electric | Reportable Legal Entities | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenues | 75,216 | 94,050 | 162,414 | 179,703 | ||
Expenses | ||||||
Fuel oil | 18,907 | 36,248 | 49,161 | 67,093 | ||
Purchased power | 12,046 | 11,954 | 24,390 | 21,999 | ||
Other operation and maintenance | 18,186 | 22,678 | 40,992 | 40,894 | ||
Depreciation | 8,075 | 7,592 | 16,154 | 15,219 | ||
Taxes, other than income taxes | 7,245 | 9,147 | 15,452 | 17,215 | ||
Total expenses | 64,459 | 87,619 | 146,149 | 162,420 | ||
Total operating income | 10,757 | 6,431 | 16,265 | 17,283 | ||
Allowance for equity funds used during construction | 194 | 343 | 347 | 674 | ||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||
Retirement defined benefits expense—other than service costs | (29) | (29) | (58) | (59) | ||
Interest expense and other charges, net | (2,446) | (2,422) | (4,769) | (4,739) | ||
Allowance for borrowed funds used during construction | 64 | 126 | 114 | 246 | ||
Income before income taxes | 8,540 | 4,449 | 11,899 | 13,405 | ||
Income taxes | 1,847 | 933 | 2,374 | 3,114 | ||
Net income | 6,693 | 3,516 | 9,525 | 10,291 | ||
Preferred stock dividends of subsidiaries | 96 | 96 | 191 | 191 | ||
Net income attributable to Hawaiian Electric | 6,597 | 3,420 | 9,334 | 10,100 | ||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||
Net income for common stock | 6,597 | 3,420 | 9,334 | 10,100 | ||
Other subsidiaries | Reportable Legal Entities | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Expenses | ||||||
Fuel oil | 0 | 0 | 0 | 0 | ||
Purchased power | 0 | 0 | 0 | 0 | ||
Other operation and maintenance | 0 | 0 | 0 | 0 | ||
Depreciation | 0 | 0 | 0 | 0 | ||
Taxes, other than income taxes | 0 | 0 | 0 | 0 | ||
Total expenses | 0 | 0 | 0 | 0 | ||
Total operating income | 0 | 0 | 0 | 0 | ||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 | ||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||
Retirement defined benefits expense—other than service costs | 0 | 0 | 0 | 0 | ||
Interest expense and other charges, net | 0 | 0 | 0 | 0 | ||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | 0 | ||
Income before income taxes | 0 | 0 | 0 | 0 | ||
Income taxes | 0 | 0 | 0 | |||
Net income | 0 | 0 | 0 | 0 | ||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 | ||
Net income attributable to Hawaiian Electric | 0 | 0 | 0 | 0 | ||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||
Net income for common stock | 0 | 0 | 0 | 0 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenues | 534,215 | 633,784 | 1,131,657 | 1,212,279 | ||
Expenses | ||||||
Fuel oil | 112,451 | 181,620 | 285,672 | 342,229 | ||
Purchased power | 136,838 | 162,854 | 276,654 | 297,299 | ||
Other operation and maintenance | 110,041 | 119,260 | 237,588 | 237,390 | ||
Depreciation | 55,696 | 53,913 | 111,546 | 107,860 | ||
Taxes, other than income taxes | 51,388 | 60,443 | 108,438 | 115,247 | ||
Total expenses | 466,414 | 578,090 | 1,019,898 | 1,100,025 | ||
Total operating income | 67,801 | 55,694 | 111,759 | 112,254 | ||
Allowance for equity funds used during construction | 2,194 | 3,175 | 4,209 | 6,085 | ||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||
Retirement defined benefits expense—other than service costs | (382) | (701) | (763) | (1,404) | ||
Interest expense and other charges, net | (17,338) | (18,530) | (33,932) | (36,516) | ||
Allowance for borrowed funds used during construction | 752 | 1,179 | 1,440 | 2,257 | ||
Income before income taxes | 53,027 | 40,817 | 82,713 | 82,676 | ||
Income taxes | 10,199 | 7,744 | 15,481 | 16,978 | ||
Net income | 42,828 | 33,073 | 67,232 | 65,698 | ||
Preferred stock dividends of subsidiaries | 229 | 229 | 458 | 458 | ||
Net income attributable to Hawaiian Electric | 42,599 | 32,844 | 66,774 | 65,240 | ||
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 540 | 540 | ||
Net income for common stock | $ 42,329 | $ 23,905 | $ 32,574 | $ 32,126 | $ 66,234 | $ 64,700 |
Electric utility segment - Co_2
Electric utility segment - Condensed consolidating statement of comprehensive income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Statement of Income Captions [Line Items] | ||||||
Net income for common stock | $ 48,887 | $ 33,420 | $ 42,512 | $ 45,688 | $ 82,307 | $ 88,200 |
Retirement benefit plans: | ||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes | 5,690 | 2,503 | 11,396 | 5,006 | ||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (5,159) | (2,298) | (10,317) | (4,596) | ||
Other comprehensive income (loss), net of taxes | (332) | 18,212 | 13,699 | 9,241 | 17,880 | 22,940 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 48,555 | 56,211 | 100,187 | 111,140 | ||
Consolidating adjustments | ||||||
Condensed Statement of Income Captions [Line Items] | ||||||
Net income for common stock | (13,776) | (8,086) | (22,580) | (19,935) | ||
Retirement benefit plans: | ||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes | (1,401) | (641) | (2,801) | (1,282) | ||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 1,401 | 640 | 2,800 | 1,280 | ||
Other comprehensive income (loss), net of taxes | 0 | (1) | (1) | (2) | ||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | (13,776) | (8,087) | (22,581) | (19,937) | ||
Hawaiian Electric (parent only) | Reportable Legal Entities | ||||||
Condensed Statement of Income Captions [Line Items] | ||||||
Net income for common stock | 42,329 | 32,574 | 66,234 | 64,700 | ||
Retirement benefit plans: | ||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes | 5,184 | 2,321 | 10,368 | 4,643 | ||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (5,159) | (2,298) | (10,317) | (4,596) | ||
Other comprehensive income (loss), net of taxes | 25 | 23 | 51 | 47 | ||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 42,354 | 32,597 | 66,285 | 64,747 | ||
HELCO | Reportable Legal Entities | ||||||
Condensed Statement of Income Captions [Line Items] | ||||||
Net income for common stock | 7,179 | 4,666 | 13,246 | 9,835 | ||
Retirement benefit plans: | ||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes | 751 | 352 | 1,499 | 704 | ||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (748) | (351) | (1,495) | (702) | ||
Other comprehensive income (loss), net of taxes | 3 | 1 | 4 | 2 | ||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 7,182 | 4,667 | 13,250 | 9,837 | ||
Maui Electric | Reportable Legal Entities | ||||||
Condensed Statement of Income Captions [Line Items] | ||||||
Net income for common stock | 6,597 | 3,420 | 9,334 | 10,100 | ||
Retirement benefit plans: | ||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes | 650 | 289 | 1,302 | 578 | ||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (653) | (289) | (1,305) | (578) | ||
Other comprehensive income (loss), net of taxes | (3) | 0 | (3) | 0 | ||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 6,594 | 3,420 | 9,331 | 10,100 | ||
Other subsidiaries | Reportable Legal Entities | ||||||
Condensed Statement of Income Captions [Line Items] | ||||||
Net income for common stock | 0 | 0 | 0 | 0 | ||
Retirement benefit plans: | ||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes | 0 | 0 | 0 | 0 | ||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 0 | 0 | 0 | 0 | ||
Other comprehensive income (loss), net of taxes | 0 | 0 | 0 | 0 | ||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 0 | 0 | 0 | 0 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||
Condensed Statement of Income Captions [Line Items] | ||||||
Net income for common stock | 42,329 | 23,905 | 32,574 | 32,126 | 66,234 | 64,700 |
Retirement benefit plans: | ||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes | 5,184 | 2,321 | 10,368 | 4,643 | ||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (5,159) | (2,298) | (10,317) | (4,596) | ||
Other comprehensive income (loss), net of taxes | 25 | $ 26 | 23 | $ 24 | 51 | 47 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ 42,354 | $ 32,597 | $ 66,285 | $ 64,747 |
Electric utility segment - Co_3
Electric utility segment - Condensed consolidating balance sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Utility property, plant and equipment | |||||||
Total property, plant and equipment, net | $ 5,181,427 | $ 5,109,628 | |||||
Current assets | |||||||
Cash and Cash Equivalents, at Carrying Value | 574,482 | 196,813 | $ 198,549 | ||||
Restricted Cash and Cash Equivalents | 29,376 | 30,872 | 0 | ||||
Other long-term assets | |||||||
Operating lease right-of-use assets | 184,759 | 199,171 | |||||
Total assets | 14,480,700 | $ 13,745,251 | 13,745,251 | ||||
Capitalization | |||||||
Total shareholders’ equity | 2,291,398 | 2,280,260 | 2,280,260 | 2,208,586 | $ 2,183,515 | $ 2,162,280 | |
Cumulative preferred stock—not subject to mandatory redemption | 0 | 0 | |||||
Current liabilities | |||||||
Interest and preferred dividends payable | 24,396 | 24,941 | |||||
Deferred credits and other liabilities | |||||||
Deferred income taxes | 368,834 | 379,324 | 379,324 | ||||
Total liabilities and shareholders’ equity | 14,480,700 | $ 13,745,251 | 13,745,251 | ||||
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 | (599,198) | (591,969) | |||||
Current assets | |||||||
Cash and Cash Equivalents, at Carrying Value | 0 | 0 | |||||
Restricted Cash and Cash Equivalents | 0 | 0 | |||||
Advances to affiliates | (13,500) | (35,700) | |||||
Customer accounts receivable, net | 0 | 0 | |||||
Accrued unbilled revenues, net | 0 | 0 | |||||
Other accounts receivable, net | (16,944) | (10,695) | |||||
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 | (30,444) | (46,395) | |||||
Other long-term assets | |||||||
Operating lease right-of-use assets | 0 | 0 | |||||
Regulatory assets | 0 | 0 | |||||
Other | 0 | 0 | |||||
Total other long-term assets | 0 | 0 | |||||
Total assets | (629,642) | (638,364) | |||||
Capitalization | |||||||
Total shareholders’ equity | (599,198) | (591,969) | (584,149) | (576,838) | |||
Cumulative preferred stock—not subject to mandatory redemption | 0 | 0 | |||||
Long-term debt, net | 0 | 0 | |||||
Total capitalization | (599,198) | (591,969) | |||||
Current liabilities | |||||||
Current portion of operating lease liabilities | 0 | 0 | |||||
Current portion of long-term debt | 0 | 0 | |||||
Short-term borrowings from non-affiliates | 0 | 0 | |||||
Short-term borrowings from affiliate | (13,500) | (35,700) | |||||
Accounts payable | 0 | 0 | |||||
Interest and preferred dividends payable | (6) | (46) | |||||
Taxes accrued | 0 | 0 | |||||
Regulatory liabilities | 0 | 0 | |||||
Other | (16,938) | (10,649) | |||||
Total current liabilities | (30,444) | (46,395) | |||||
Deferred credits and other liabilities | |||||||
Operating lease liabilities | 0 | 0 | |||||
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 liabilities and shareholders’ equity | (629,642) | (638,364) | |||||
Hawaiian Electric (parent only) | Reportable Legal Entities | |||||||
Utility property, plant and equipment | |||||||
Land | 42,389 | 42,598 | |||||
Plant and equipment | 4,859,373 | 4,765,362 | |||||
Less accumulated depreciation | (1,636,504) | (1,591,241) | |||||
Construction in progress | 170,655 | 165,137 | |||||
Utility property, plant and equipment, net | 3,435,913 | 3,381,856 | |||||
Nonutility property, plant and equipment, less accumulated depreciation | 5,308 | 5,310 | |||||
Total property, plant and equipment, net | 3,441,221 | 3,387,166 | |||||
Investment in wholly owned subsidiaries, at equity | 599,198 | 591,969 | |||||
Current assets | |||||||
Cash and Cash Equivalents, at Carrying Value | 55,170 | 2,239 | |||||
Restricted Cash and Cash Equivalents | 29,376 | 30,749 | |||||
Advances to affiliates | 13,500 | 27,700 | |||||
Customer accounts receivable, net | 97,615 | 105,454 | |||||
Accrued unbilled revenues, net | 74,086 | 83,148 | |||||
Other accounts receivable, net | 19,409 | 18,396 | |||||
Fuel oil stock, at average cost | 30,477 | 69,003 | |||||
Materials and supplies, at average cost | 38,475 | 34,876 | |||||
Prepayments and other | 18,005 | 88,334 | |||||
Regulatory assets | 16,846 | 27,689 | |||||
Total current assets | 392,959 | 487,588 | |||||
Other long-term assets | |||||||
Operating lease right-of-use assets | 159,169 | 174,886 | |||||
Regulatory assets | 460,493 | 476,390 | |||||
Other | 76,482 | 69,010 | |||||
Total other long-term assets | 696,144 | 720,286 | |||||
Total assets | 5,129,522 | 5,187,009 | |||||
Capitalization | |||||||
Total shareholders’ equity | 2,060,069 | 2,047,352 | 1,971,762 | 1,957,641 | |||
Cumulative preferred stock—not subject to mandatory redemption | 22,293 | 22,293 | |||||
Long-term debt, net | 1,116,186 | 1,006,737 | |||||
Total capitalization | 3,198,548 | 3,076,382 | |||||
Current liabilities | |||||||
Current portion of operating lease liabilities | 64,405 | 63,582 | |||||
Current portion of long-term debt | 0 | 61,958 | |||||
Short-term borrowings from non-affiliates | 49,919 | 88,987 | |||||
Short-term borrowings from affiliate | 0 | 8,000 | |||||
Accounts payable | 79,071 | 139,056 | |||||
Interest and preferred dividends payable | 14,580 | 14,759 | |||||
Taxes accrued | 133,321 | 143,522 | |||||
Regulatory liabilities | 11,467 | 13,363 | |||||
Other | 55,378 | 51,295 | |||||
Total current liabilities | 408,141 | 584,522 | |||||
Deferred credits and other liabilities | |||||||
Operating lease liabilities | 100,833 | 111,598 | |||||
Deferred income taxes | 261,044 | 265,864 | |||||
Regulatory liabilities | 674,621 | 664,894 | |||||
Unamortized tax credits | 84,885 | 86,852 | |||||
Defined benefit pension and other postretirement benefit plans liability | 340,672 | 339,471 | |||||
Other | 60,778 | 57,426 | |||||
Total deferred credits and other liabilities | 1,522,833 | 1,526,105 | |||||
Total liabilities and shareholders’ equity | 5,129,522 | 5,187,009 | |||||
HELCO | Reportable Legal Entities | |||||||
Utility property, plant and equipment | |||||||
Land | 5,606 | 5,606 | |||||
Plant and equipment | 1,321,091 | 1,313,727 | |||||
Less accumulated depreciation | (586,351) | (574,615) | |||||
Construction in progress | 20,181 | 9,993 | |||||
Utility property, plant and equipment, net | 760,527 | 754,711 | |||||
Nonutility property, plant and equipment, less accumulated depreciation | 115 | 114 | |||||
Total property, plant and equipment, net | 760,642 | 754,825 | |||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | |||||
Current assets | |||||||
Cash and Cash Equivalents, at Carrying Value | 4,594 | 6,885 | |||||
Restricted Cash and Cash Equivalents | 0 | 123 | |||||
Advances to affiliates | 0 | 8,000 | |||||
Customer accounts receivable, net | 21,422 | 24,520 | |||||
Accrued unbilled revenues, net | 12,705 | 17,071 | |||||
Other accounts receivable, net | 3,592 | 1,907 | |||||
Fuel oil stock, at average cost | 14,965 | 8,901 | |||||
Materials and supplies, at average cost | 10,116 | 8,313 | |||||
Prepayments and other | 17,151 | 3,725 | |||||
Regulatory assets | 2,598 | 1,641 | |||||
Total current assets | 87,143 | 81,086 | |||||
Other long-term assets | |||||||
Operating lease right-of-use assets | 1,490 | 1,537 | |||||
Regulatory assets | 104,707 | 109,163 | |||||
Other | 16,915 | 15,493 | |||||
Total other long-term assets | 123,112 | 126,193 | |||||
Total assets | 970,897 | 962,104 | |||||
Capitalization | |||||||
Total shareholders’ equity | 304,088 | 298,998 | 300,619 | 295,874 | |||
Cumulative preferred stock—not subject to mandatory redemption | 7,000 | 7,000 | |||||
Long-term debt, net | 216,400 | 206,416 | |||||
Total capitalization | 527,488 | 512,414 | |||||
Current liabilities | |||||||
Current portion of operating lease liabilities | 97 | 94 | |||||
Current portion of long-term debt | 14,000 | 13,995 | |||||
Short-term borrowings from non-affiliates | 0 | 0 | |||||
Short-term borrowings from affiliate | 12,000 | 0 | |||||
Accounts payable | 14,408 | 25,629 | |||||
Interest and preferred dividends payable | 3,349 | 3,115 | |||||
Taxes accrued | 32,526 | 32,541 | |||||
Regulatory liabilities | 7,401 | 9,454 | |||||
Other | 17,181 | 11,362 | |||||
Total current liabilities | 100,962 | 96,190 | |||||
Deferred credits and other liabilities | |||||||
Operating lease liabilities | 1,394 | 1,442 | |||||
Deferred income taxes | 52,485 | 53,534 | |||||
Regulatory liabilities | 178,861 | 178,474 | |||||
Unamortized tax credits | 15,773 | 16,196 | |||||
Defined benefit pension and other postretirement benefit plans liability | 69,719 | 69,928 | |||||
Other | 24,215 | 33,926 | |||||
Total deferred credits and other liabilities | 342,447 | 353,500 | |||||
Total liabilities and shareholders’ equity | 970,897 | 962,104 | |||||
Maui Electric | Reportable Legal Entities | |||||||
Utility property, plant and equipment | |||||||
Land | 3,612 | 3,612 | |||||
Plant and equipment | 1,173,377 | 1,161,199 | |||||
Less accumulated depreciation | (535,689) | (524,301) | |||||
Construction in progress | 23,651 | 17,944 | |||||
Utility property, plant and equipment, net | 664,951 | 658,454 | |||||
Nonutility property, plant and equipment, less accumulated depreciation | 1,532 | 1,532 | |||||
Total property, plant and equipment, net | 666,483 | 659,986 | |||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | |||||
Current assets | |||||||
Cash and Cash Equivalents, at Carrying Value | 4,130 | 1,797 | |||||
Restricted Cash and Cash Equivalents | 0 | 0 | |||||
Advances to affiliates | 0 | 0 | |||||
Customer accounts receivable, net | 19,001 | 22,816 | |||||
Accrued unbilled revenues, net | 13,810 | 17,008 | |||||
Other accounts receivable, net | 4,358 | 1,960 | |||||
Fuel oil stock, at average cost | 15,037 | 14,033 | |||||
Materials and supplies, at average cost | 17,653 | 17,513 | |||||
Prepayments and other | 2,773 | 24,921 | |||||
Regulatory assets | 1,842 | 1,380 | |||||
Total current assets | 78,604 | 101,428 | |||||
Other long-term assets | |||||||
Operating lease right-of-use assets | 370 | 386 | |||||
Regulatory assets | 96,084 | 98,817 | |||||
Other | 19,588 | 17,215 | |||||
Total other long-term assets | 116,042 | 116,418 | |||||
Total assets | 861,129 | 877,832 | |||||
Capitalization | |||||||
Total shareholders’ equity | 295,009 | 292,870 | 283,429 | 280,863 | |||
Cumulative preferred stock—not subject to mandatory redemption | 5,000 | 5,000 | |||||
Long-term debt, net | 228,369 | 188,561 | |||||
Total capitalization | 528,378 | 486,431 | |||||
Current liabilities | |||||||
Current portion of operating lease liabilities | 32 | 31 | |||||
Current portion of long-term debt | 0 | 20,000 | |||||
Short-term borrowings from non-affiliates | 0 | 0 | |||||
Short-term borrowings from affiliate | 1,500 | 27,700 | |||||
Accounts payable | 13,599 | 23,085 | |||||
Interest and preferred dividends payable | 2,736 | 2,900 | |||||
Taxes accrued | 28,004 | 31,929 | |||||
Regulatory liabilities | 7,199 | 7,907 | |||||
Other | 16,070 | 15,297 | |||||
Total current liabilities | 69,140 | 128,849 | |||||
Deferred credits and other liabilities | |||||||
Operating lease liabilities | 343 | 360 | |||||
Deferred income taxes | 57,523 | 57,752 | |||||
Regulatory liabilities | 98,231 | 98,218 | |||||
Unamortized tax credits | 14,348 | 14,820 | |||||
Defined benefit pension and other postretirement benefit plans liability | 69,459 | 69,364 | |||||
Other | 23,707 | 22,038 | |||||
Total deferred credits and other liabilities | 263,611 | 262,552 | |||||
Total liabilities and shareholders’ equity | 861,129 | 877,832 | |||||
Other subsidiaries | Reportable Legal Entities | |||||||
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, at Carrying Value | 101 | 101 | |||||
Restricted Cash and Cash Equivalents | 0 | 0 | |||||
Advances to affiliates | 0 | 0 | |||||
Customer accounts receivable, net | 0 | 0 | |||||
Accrued unbilled revenues, net | 0 | 0 | |||||
Other accounts receivable, net | 0 | 0 | |||||
Fuel oil stock, at average cost | 0 | 0 | |||||
Materials and supplies, at average cost | 0 | 0 | |||||
Prepayments and other | 0 | 0 | |||||
Regulatory assets | 0 | 0 | |||||
Total current assets | 101 | 101 | |||||
Other long-term assets | |||||||
Operating lease right-of-use assets | 0 | 0 | |||||
Regulatory assets | 0 | 0 | |||||
Other | 0 | 0 | |||||
Total other long-term assets | 0 | 0 | |||||
Total assets | 101 | 101 | |||||
Capitalization | |||||||
Total shareholders’ equity | 101 | 101 | 101 | 101 | |||
Cumulative preferred stock—not subject to mandatory redemption | 0 | 0 | |||||
Long-term debt, net | 0 | 0 | |||||
Total capitalization | 101 | 101 | |||||
Current liabilities | |||||||
Current portion of operating lease liabilities | 0 | 0 | |||||
Current portion of long-term debt | 0 | 0 | |||||
Short-term borrowings from non-affiliates | 0 | 0 | |||||
Short-term borrowings from affiliate | 0 | 0 | |||||
Accounts payable | 0 | 0 | |||||
Interest and preferred dividends payable | 0 | 0 | |||||
Taxes accrued | 0 | 0 | |||||
Regulatory liabilities | 0 | 0 | |||||
Other | 0 | 0 | |||||
Total current liabilities | 0 | 0 | |||||
Deferred credits and other liabilities | |||||||
Operating lease liabilities | 0 | 0 | |||||
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 liabilities and shareholders’ equity | 101 | 101 | |||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||
Utility property, plant and equipment | |||||||
Land | 51,607 | 51,816 | |||||
Plant and equipment | 7,353,841 | 7,240,288 | |||||
Less accumulated depreciation | (2,758,544) | (2,690,157) | |||||
Construction in progress | 214,487 | 193,074 | |||||
Utility property, plant and equipment, net | 4,861,391 | 4,795,021 | |||||
Nonutility property, plant and equipment, less accumulated depreciation | 6,955 | 6,956 | |||||
Total property, plant and equipment, net | 4,868,346 | 4,801,977 | |||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | |||||
Current assets | |||||||
Cash and Cash Equivalents, at Carrying Value | 63,995 | 11,022 | 23,361 | ||||
Restricted Cash and Cash Equivalents | 29,376 | 30,872 | 0 | ||||
Advances to affiliates | 0 | 0 | |||||
Customer accounts receivable, net | 138,038 | 152,790 | |||||
Accrued unbilled revenues, net | 100,601 | 117,227 | |||||
Other accounts receivable, net | 10,415 | 11,568 | |||||
Fuel oil stock, at average cost | 60,479 | 91,937 | |||||
Materials and supplies, at average cost | 66,244 | 60,702 | |||||
Prepayments and other | 37,929 | 116,980 | |||||
Regulatory assets | 21,286 | 30,710 | |||||
Total current assets | 528,363 | 623,808 | |||||
Other long-term assets | |||||||
Operating lease right-of-use assets | 161,029 | 176,809 | |||||
Regulatory assets | 661,284 | 684,370 | |||||
Other | 112,985 | 101,718 | |||||
Total other long-term assets | 935,298 | 962,897 | |||||
Total assets | 6,332,007 | 6,388,682 | |||||
Capitalization | |||||||
Total shareholders’ equity | 2,060,069 | $ 2,044,499 | 2,047,352 | $ 1,971,762 | $ 1,964,478 | $ 1,957,641 | |
Cumulative preferred stock—not subject to mandatory redemption | 34,293 | 34,293 | |||||
Long-term debt, net | 1,560,955 | 1,401,714 | |||||
Total capitalization | 3,655,317 | 3,483,359 | |||||
Current liabilities | |||||||
Current portion of operating lease liabilities | 64,534 | 63,707 | |||||
Current portion of long-term debt | 14,000 | 95,953 | |||||
Short-term borrowings from non-affiliates | 49,919 | 88,987 | |||||
Short-term borrowings from affiliate | 0 | 0 | |||||
Accounts payable | 107,078 | 187,770 | |||||
Interest and preferred dividends payable | 20,659 | 20,728 | |||||
Taxes accrued | 193,851 | 207,992 | |||||
Regulatory liabilities | 26,067 | 30,724 | |||||
Other | 71,691 | 67,305 | |||||
Total current liabilities | 547,799 | 763,166 | |||||
Deferred credits and other liabilities | |||||||
Operating lease liabilities | 102,570 | 113,400 | |||||
Deferred income taxes | 371,052 | 377,150 | |||||
Regulatory liabilities | 951,713 | 941,586 | |||||
Unamortized tax credits | 115,006 | 117,868 | |||||
Defined benefit pension and other postretirement benefit plans liability | 479,850 | 478,763 | |||||
Other | 108,700 | 113,390 | |||||
Total deferred credits and other liabilities | 2,128,891 | 2,142,157 | |||||
Total liabilities and shareholders’ equity | $ 6,332,007 | $ 6,388,682 |
Electric utility segment - Co_4
Electric utility segment - Condensed consolidating statement of changes in common stock equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Increase (decrease) in stockholders' equity | ||||||
Beginning Balance | $ 2,280,260 | $ 2,183,515 | $ 2,162,280 | $ 2,280,260 | $ 2,162,280 | |
Net income for common stock | $ 48,887 | 33,420 | 42,512 | 45,688 | 82,307 | 88,200 |
Other comprehensive income (loss), net of taxes | (332) | 18,212 | 13,699 | 9,241 | 17,880 | 22,940 |
Common stock dividends | (36,017) | (36,019) | (34,860) | (34,860) | ||
Ending Balance | 2,291,398 | 2,208,586 | 2,183,515 | 2,291,398 | 2,208,586 | |
Consolidating adjustments | ||||||
Increase (decrease) in stockholders' equity | ||||||
Beginning Balance | (591,969) | (576,838) | (591,969) | (576,838) | ||
Net income for common stock | (13,776) | (8,086) | (22,580) | (19,935) | ||
Other comprehensive income (loss), net of taxes | 0 | (1) | (1) | (2) | ||
Common stock dividends | 15,352 | 12,624 | ||||
Common stock issuance expenses | 2 | |||||
Ending Balance | (599,198) | (584,149) | (599,198) | (584,149) | ||
Hawaiian Electric (parent only) | Reportable Legal Entities | ||||||
Increase (decrease) in stockholders' equity | ||||||
Beginning Balance | 2,047,352 | 1,957,641 | 2,047,352 | 1,957,641 | ||
Net income for common stock | 42,329 | 32,574 | 66,234 | 64,700 | ||
Other comprehensive income (loss), net of taxes | 25 | 23 | 51 | 47 | ||
Common stock dividends | (53,568) | (50,626) | ||||
Ending Balance | 2,060,069 | 1,971,762 | 2,060,069 | 1,971,762 | ||
HELCO | Reportable Legal Entities | ||||||
Increase (decrease) in stockholders' equity | ||||||
Beginning Balance | 298,998 | 295,874 | 298,998 | 295,874 | ||
Net income for common stock | 7,179 | 4,666 | 13,246 | 9,835 | ||
Other comprehensive income (loss), net of taxes | 3 | 1 | 4 | 2 | ||
Common stock dividends | (8,160) | (5,090) | ||||
Common stock issuance expenses | (2) | |||||
Ending Balance | 304,088 | 300,619 | 304,088 | 300,619 | ||
Maui Electric | Reportable Legal Entities | ||||||
Increase (decrease) in stockholders' equity | ||||||
Beginning Balance | 292,870 | 280,863 | 292,870 | 280,863 | ||
Net income for common stock | 6,597 | 3,420 | 9,334 | 10,100 | ||
Other comprehensive income (loss), net of taxes | (3) | 0 | (3) | 0 | ||
Common stock dividends | (7,192) | (7,534) | ||||
Ending Balance | 295,009 | 283,429 | 295,009 | 283,429 | ||
Other subsidiaries | Reportable Legal Entities | ||||||
Increase (decrease) in stockholders' equity | ||||||
Beginning Balance | 101 | 101 | 101 | 101 | ||
Net income for common stock | 0 | 0 | 0 | 0 | ||
Other comprehensive income (loss), net of taxes | 0 | 0 | 0 | 0 | ||
Ending Balance | 101 | 101 | 101 | 101 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||
Increase (decrease) in stockholders' equity | ||||||
Beginning Balance | 2,044,499 | 2,047,352 | 1,964,478 | 1,957,641 | 2,047,352 | 1,957,641 |
Net income for common stock | 42,329 | 23,905 | 32,574 | 32,126 | 66,234 | 64,700 |
Other comprehensive income (loss), net of taxes | 25 | 26 | 23 | 24 | 51 | 47 |
Common stock dividends | (26,784) | (26,784) | (25,313) | (25,313) | (53,568) | (50,626) |
Common stock issuance expenses | 0 | |||||
Ending Balance | $ 2,060,069 | $ 2,044,499 | $ 1,971,762 | $ 1,964,478 | $ 2,060,069 | $ 1,971,762 |
Electric utility segment - Co_5
Electric utility segment - Condensed consolidating statement of cash flows (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net cash provided by operating activities | $ 197,383 | $ 133,406 | |
Cash flows from investing activities | |||
Capital expenditures | (197,816) | (229,282) | |
Other | 4,469 | 6,143 | |
Net cash used in investing activities | (629,256) | (275,130) | |
Cash flows from financing activities | |||
Common stock dividends | (72,037) | (69,720) | |
Proceeds from issuance of short-term debt | (119,211) | 112,901 | |
Proceeds from issuance of long-term debt | 351,942 | 56,150 | |
Repayment of short-term debt | (100,000) | 0 | |
Repayment of long-term debt and funds transferred for repayment of long-term debt | (177,245) | (52,489) | |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | (20,135) | 1,445 | |
Other | (1,672) | 1,189 | |
Net cash provided by financing activities | 808,046 | 171,065 | |
Net increase in cash, cash equivalents and restricted cash | 376,173 | 29,341 | |
Cash, cash equivalents and restricted cash, beginning of period | 227,685 | 169,208 | |
Cash, cash equivalents and restricted cash, end of period | 603,858 | 198,549 | |
Less: Restricted cash | (29,376) | 0 | $ (30,872) |
Cash and cash equivalents, end of period | 574,482 | 198,549 | 196,813 |
Consolidating adjustments | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | (15,407) | (12,624) | |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | |
Advances from affiliates | (22,200) | 30,300 | |
Other | 55 | 0 | |
Net cash used in investing activities | (22,145) | 30,300 | |
Cash flows from financing activities | |||
Common stock dividends | 15,352 | 12,624 | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | |
Proceeds from issuance of short-term debt | 0 | 0 | |
Proceeds from issuance of long-term debt | 0 | 0 | |
Repayment of short-term debt | 0 | ||
Repayment of long-term debt and funds transferred for repayment of long-term debt | 0 | 0 | |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 22,200 | (30,300) | |
Other | 0 | 0 | |
Net cash provided by financing activities | 37,552 | (17,676) | |
Net increase in cash, cash equivalents and restricted cash | 0 | 0 | |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 | |
Cash, cash equivalents and restricted cash, end of period | 0 | 0 | |
Less: Restricted cash | 0 | 0 | |
Cash and cash equivalents, end of period | 0 | 0 | |
Hawaiian Electric (parent only) | Reportable Legal Entities | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 154,967 | 84,427 | |
Cash flows from investing activities | |||
Capital expenditures | (129,829) | (150,945) | |
Advances from affiliates | 14,200 | (25,300) | |
Other | 4,354 | 2,821 | |
Net cash used in investing activities | (111,275) | (173,424) | |
Cash flows from financing activities | |||
Common stock dividends | (53,568) | (50,626) | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (540) | (540) | |
Proceeds from issuance of short-term debt | 100,000 | 25,000 | |
Proceeds from issuance of long-term debt | 205,000 | 30,000 | |
Repayment of short-term debt | (100,000) | ||
Repayment of long-term debt and funds transferred for repayment of long-term debt | (95,000) | (31,546) | |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | (46,987) | 116,901 | |
Other | (1,039) | 197 | |
Net cash provided by financing activities | 7,866 | 89,386 | |
Net increase in cash, cash equivalents and restricted cash | 51,558 | 389 | |
Cash, cash equivalents and restricted cash, beginning of period | 32,988 | 16,732 | |
Cash, cash equivalents and restricted cash, end of period | 84,546 | 17,121 | |
Less: Restricted cash | (29,376) | (30,749) | |
Cash and cash equivalents, end of period | 55,170 | 2,239 | |
HELCO | |||
Cash flows from financing activities | |||
Repayment of long-term debt and funds transferred for repayment of long-term debt | (14,000) | ||
HELCO | Reportable Legal Entities | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 20,307 | 16,406 | |
Cash flows from investing activities | |||
Capital expenditures | (30,785) | (18,083) | |
Advances from affiliates | 8,000 | (5,000) | |
Other | 552 | (280) | |
Net cash used in investing activities | (22,233) | (23,363) | |
Cash flows from financing activities | |||
Common stock dividends | (8,160) | (5,090) | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (267) | (267) | |
Proceeds from issuance of short-term debt | 0 | 0 | |
Proceeds from issuance of long-term debt | 10,000 | 10,000 | |
Repayment of short-term debt | 0 | ||
Repayment of long-term debt and funds transferred for repayment of long-term debt | (10,000) | ||
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 12,000 | 0 | |
Other | (61) | 43 | |
Net cash provided by financing activities | (488) | (5,314) | |
Net increase in cash, cash equivalents and restricted cash | (2,414) | (12,271) | |
Cash, cash equivalents and restricted cash, beginning of period | 7,008 | 15,623 | |
Cash, cash equivalents and restricted cash, end of period | 4,594 | 3,352 | |
Less: Restricted cash | 0 | (123) | |
Cash and cash equivalents, end of period | 4,594 | 6,885 | |
Maui Electric | |||
Cash flows from financing activities | |||
Repayment of long-term debt and funds transferred for repayment of long-term debt | 0 | ||
Maui Electric | Reportable Legal Entities | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 21,601 | 12,607 | |
Cash flows from investing activities | |||
Capital expenditures | (25,918) | (30,868) | |
Advances from affiliates | 0 | 0 | |
Other | 480 | (31) | |
Net cash used in investing activities | (25,438) | (30,899) | |
Cash flows from financing activities | |||
Common stock dividends | (7,192) | (7,534) | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (191) | (191) | |
Proceeds from issuance of short-term debt | 0 | 0 | |
Proceeds from issuance of long-term debt | 40,000 | 10,000 | |
Repayment of short-term debt | 0 | ||
Repayment of long-term debt and funds transferred for repayment of long-term debt | (10,000) | ||
Net increase (decrease) in other bank borrowings with original maturities of three months or less | (26,200) | 25,300 | |
Other | (247) | 83 | |
Net cash provided by financing activities | 6,170 | 17,658 | |
Net increase in cash, cash equivalents and restricted cash | 2,333 | (634) | |
Cash, cash equivalents and restricted cash, beginning of period | 1,797 | 3,421 | |
Cash, cash equivalents and restricted cash, end of period | 4,130 | 2,787 | |
Less: Restricted cash | 0 | 0 | |
Cash and cash equivalents, end of period | 4,130 | 1,797 | |
Other subsidiaries | |||
Cash flows from financing activities | |||
Repayment of long-term debt and funds transferred for repayment of long-term debt | 0 | ||
Other subsidiaries | Reportable Legal Entities | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 0 | 0 | |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | |
Advances from affiliates | 0 | 0 | |
Other | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | |
Cash flows from financing activities | |||
Common stock dividends | 0 | 0 | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | |
Proceeds from issuance of short-term debt | 0 | 0 | |
Proceeds from issuance of long-term debt | 0 | 0 | |
Repayment of short-term debt | 0 | ||
Repayment of long-term debt and funds transferred for repayment of long-term debt | 0 | ||
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 0 | 0 | |
Other | 0 | 0 | |
Net cash provided by financing activities | 0 | 0 | |
Net increase in cash, cash equivalents and restricted cash | 0 | 0 | |
Cash, cash equivalents and restricted cash, beginning of period | 101 | 101 | |
Cash, cash equivalents and restricted cash, end of period | 101 | 101 | |
Less: Restricted cash | 0 | 0 | |
Cash and cash equivalents, end of period | 101 | 101 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 181,468 | 100,816 | |
Cash flows from investing activities | |||
Capital expenditures | (186,532) | (199,896) | |
Advances from affiliates | 0 | 0 | |
Other | 5,441 | 2,510 | |
Net cash used in investing activities | (181,091) | (197,386) | |
Cash flows from financing activities | |||
Common stock dividends | (53,568) | (50,626) | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (998) | (998) | |
Proceeds from issuance of short-term debt | 100,000 | 25,000 | |
Proceeds from issuance of long-term debt | 255,000 | 50,000 | |
Repayment of short-term debt | (100,000) | 0 | |
Repayment of long-term debt and funds transferred for repayment of long-term debt | (109,000) | (51,546) | |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | (38,987) | 111,901 | |
Other | (1,347) | 323 | |
Net cash provided by financing activities | 51,100 | 84,054 | |
Net increase in cash, cash equivalents and restricted cash | 51,477 | (12,516) | |
Cash, cash equivalents and restricted cash, beginning of period | 41,894 | 35,877 | |
Cash, cash equivalents and restricted cash, end of period | 93,371 | 23,361 | |
Less: Restricted cash | (29,376) | 0 | (30,872) |
Cash and cash equivalents, end of period | $ 63,995 | $ 23,361 | $ 11,022 |
Bank segment - Income statement
Bank segment - Income statement data (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Noninterest income | ||||||
Noninterest income | $ 532,921 | $ 660,421 | $ 1,151,526 | $ 1,237,811 | ||
Noninterest expense | ||||||
Income before income taxes | 60,230 | 52,694 | 99,926 | 110,733 | ||
Income taxes | 10,870 | 9,709 | 16,673 | 21,587 | ||
Net income | 49,360 | 42,985 | 83,253 | 89,146 | ||
Other comprehensive income (loss), net of tax (benefits) | (332) | $ 18,212 | 13,699 | $ 9,241 | 17,880 | 22,940 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 48,555 | 56,211 | 100,187 | 111,140 | ||
COVID-19 related costs | 3,700 | 3,800 | ||||
Incremental compensation expense | 2,300 | 2,300 | ||||
Enhanced cleaning and sanitation costs | 1,100 | 1,100 | ||||
American Savings Bank (ASB) | ||||||
Interest and dividend income | ||||||
Interest and fees on loans | 53,541 | 58,620 | 109,086 | 116,480 | ||
Interest and dividends on investment securities | 6,288 | 7,535 | 15,718 | 18,163 | ||
Total interest and dividend income | 59,829 | 66,155 | 124,804 | 134,643 | ||
Interest expense | ||||||
Interest on deposit liabilities | 3,071 | 4,287 | 6,658 | 8,539 | ||
Interest on other borrowings | 75 | 411 | 388 | 939 | ||
Total interest expense | 3,146 | 4,698 | 7,046 | 9,478 | ||
Net interest income | 56,683 | 61,457 | 117,758 | 125,165 | ||
Provision for credit losses | 15,133 | 7,688 | 25,534 | 14,558 | ||
Net interest income after provision for credit losses | 41,550 | 53,769 | 92,224 | 110,607 | ||
Noninterest income | ||||||
Total noninterest income | 24,160 | 15,532 | 38,923 | 30,096 | ||
Noninterest expense | ||||||
Compensation and employee benefits | 25,079 | 25,750 | 50,856 | 51,262 | ||
Occupancy | 5,442 | 5,479 | 10,709 | 10,149 | ||
Data processing | 3,849 | 3,852 | 7,686 | 7,590 | ||
Services | 2,474 | 2,606 | 5,283 | 5,032 | ||
Equipment | 2,290 | 2,189 | 4,629 | 4,253 | ||
Office supplies, printing and postage | 1,049 | 1,663 | 2,390 | 3,023 | ||
Marketing | 379 | 1,323 | 1,181 | 2,313 | ||
FDIC insurance | 751 | 628 | 853 | 1,254 | ||
Other expense1 | 7,063 | 4,519 | 11,257 | 8,373 | ||
Total noninterest expense | 48,376 | 48,009 | 94,844 | 93,249 | ||
Income before income taxes | 17,334 | 21,292 | 36,303 | 47,454 | ||
Income taxes | 3,320 | 4,276 | 6,528 | 9,599 | ||
Net income | 14,014 | 17,016 | 29,775 | 37,855 | ||
Other comprehensive income (loss), net of tax (benefits) | (280) | 14,275 | 19,567 | 20,527 | ||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 13,734 | 31,291 | 49,342 | 58,382 | ||
American Savings Bank (ASB) | Fees from other financial services | ||||||
Noninterest income | ||||||
Noninterest income | 3,102 | 4,798 | 7,673 | 9,360 | ||
American Savings Bank (ASB) | Fee income on deposit liabilities | ||||||
Noninterest income | ||||||
Noninterest income | 2,897 | 5,004 | 8,010 | 10,082 | ||
American Savings Bank (ASB) | Fee income on other financial products | ||||||
Noninterest income | ||||||
Noninterest income | 1,212 | 1,830 | 3,084 | 3,423 | ||
American Savings Bank (ASB) | Bank-owned life insurance | ||||||
Noninterest income | ||||||
Noninterest income | 1,673 | 2,390 | 2,467 | 4,649 | ||
American Savings Bank (ASB) | Mortgage banking income | ||||||
Noninterest income | ||||||
Noninterest income | 6,252 | 976 | 8,252 | 1,590 | ||
American Savings Bank (ASB) | Gain on sale of investment securities, net | ||||||
Noninterest income | ||||||
Noninterest income | 9,275 | 0 | 9,275 | 0 | ||
American Savings Bank (ASB) | Other income, net | ||||||
Noninterest income | ||||||
Noninterest income | $ (251) | $ 534 | $ 162 | $ 992 |
Bank segment - Reconciliation o
Bank segment - Reconciliation of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Income Statements, Captions [Line Items] | ||||
Gain on sale of investment securities, net | $ 9,275 | $ 0 | $ 9,275 | $ 0 |
Total revenues | 608,945 | 715,485 | 1,286,131 | 1,377,100 |
Total revenues | 608,945 | 715,485 | 1,286,131 | 1,377,100 |
Retirement defined benefits gain (expense)--other than service costs | (934) | (761) | (1,868) | (1,524) |
Total expenses | 537,389 | 642,851 | 1,154,873 | 1,226,529 |
Operating income | 71,556 | 72,634 | 131,258 | 150,571 |
Income before income taxes | 60,230 | 52,694 | 99,926 | 110,733 |
American Savings Bank (ASB) | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Interest and dividend income | 59,829 | 66,155 | 124,804 | 134,643 |
Total noninterest income | 24,160 | 15,532 | 38,923 | 30,096 |
Gain on sale of investment securities, net | (9,275) | 0 | (9,275) | 0 |
Total revenues | 74,714 | 81,687 | 154,452 | 164,739 |
Total interest expense | 3,146 | 4,698 | 7,046 | 9,478 |
Provision for credit losses | 15,133 | 7,688 | 25,534 | 14,558 |
Noninterest expense | 48,376 | 48,009 | 94,844 | 93,249 |
Retirement defined benefits gain (expense)--other than service costs | 434 | (40) | 868 | (80) |
Total expenses | 66,221 | 60,435 | 126,556 | 117,365 |
Operating income | 8,493 | 21,252 | 27,896 | 47,374 |
Income before income taxes | $ 17,334 | $ 21,292 | $ 36,303 | $ 47,454 |
Bank segment - Balance sheet da
Bank segment - Balance sheet data (Details) - USD ($) | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||||||
Available-for-sale investment securities, at fair value | $ 1,389,633,000 | $ 1,232,826,000 | ||||
Held-to-maturity investment securities, at amortized cost | 124,623,000 | 139,451,000 | ||||
Stock in Federal Home Loan Bank, at cost | 9,880,000 | 8,434,000 | ||||
Net loans | 5,356,510,000 | $ 5,067,821,000 | 5,067,821,000 | |||
Loans held for sale, at lower of cost or fair value | 37,143,000 | 12,286,000 | ||||
Other | 556,793,000 | 649,885,000 | ||||
Goodwill | 82,190,000 | 82,190,000 | ||||
Total assets | 14,480,700,000 | 13,745,251,000 | 13,745,251,000 | |||
Liabilities | ||||||
Other | 580,082,000 | 583,545,000 | 583,545,000 | |||
Total liabilities | 12,155,009,000 | 11,430,698,000 | 11,430,698,000 | |||
Commitments and contingencies | ||||||
Retained earnings | 616,941,000 | 622,042,000 | 622,042,000 | |||
Accumulated other comprehensive income (loss), net of taxes | ||||||
Accumulated other comprehensive loss, net of tax benefits | (2,159,000) | (20,039,000) | ||||
Total shareholders’ equity | 2,291,398,000 | 2,280,260,000 | 2,280,260,000 | $ 2,208,586,000 | $ 2,183,515,000 | $ 2,162,280,000 |
Total liabilities and shareholders’ equity | 14,480,700,000 | 13,745,251,000 | 13,745,251,000 | |||
Other assets | ||||||
Premises and equipment, net | 5,181,427,000 | 5,109,628,000 | ||||
Other | 556,793,000 | 649,885,000 | ||||
Other liabilities | ||||||
Total other liabilities | 580,082,000 | $ 583,545,000 | 583,545,000 | |||
Balance Sheet related disclosures | ||||||
Held-to-maturity investment securities | 131,131,000 | 143,467,000 | ||||
Securities sold under agreements to repurchase | 95,000,000 | 115,000,000 | ||||
Federal funds purchased | 0 | 0 | ||||
American Savings Bank (ASB) | ||||||
Assets | ||||||
Cash and due from banks | 140,968,000 | 129,770,000 | ||||
Interest-bearing deposits | 365,996,000 | 48,628,000 | ||||
Available-for-sale investment securities, at fair value | 1,389,633,000 | 1,232,826,000 | ||||
Held-to-maturity investment securities, at amortized cost | 124,623,000 | 139,451,000 | ||||
Stock in Federal Home Loan Bank, at cost | 9,880,000 | 8,434,000 | ||||
Loans held for investment | 5,437,817,000 | 5,121,176,000 | ||||
Allowance for credit losses | (81,307,000) | (53,355,000) | ||||
Net loans | 5,356,510,000 | 5,067,821,000 | ||||
Loans held for sale, at lower of cost or fair value | 37,143,000 | 12,286,000 | ||||
Other | 512,722,000 | 511,611,000 | ||||
Goodwill | 82,190,000 | 82,190,000 | ||||
Total assets | 8,019,665,000 | 7,233,017,000 | ||||
Liabilities | ||||||
Deposit liabilities—noninterest-bearing | 2,422,042,000 | 1,909,682,000 | ||||
Deposit liabilities—interest-bearing | 4,607,910,000 | 4,362,220,000 | ||||
Other borrowings | 124,975,000 | 115,110,000 | ||||
Other | 158,344,000 | 146,954,000 | ||||
Total liabilities | 7,313,271,000 | 6,533,966,000 | ||||
Commitments and contingencies | ||||||
Common stock | 1,000 | 1,000 | ||||
Additional paid-in capital | 350,826,000 | 349,453,000 | ||||
Retained earnings | 344,662,000 | 358,259,000 | ||||
Accumulated other comprehensive income (loss), net of taxes | ||||||
Net unrealized gains on securities | 21,264,000 | 2,481,000 | ||||
Retirement benefit plans | (10,359,000) | (11,143,000) | ||||
Accumulated other comprehensive loss, net of tax benefits | 10,905,000 | (8,662,000) | ||||
Total shareholders’ equity | 706,394,000 | 699,051,000 | ||||
Total liabilities and shareholders’ equity | 8,019,665,000 | 7,233,017,000 | ||||
Other assets | ||||||
Bank-owned life insurance | 159,951,000 | 157,465,000 | ||||
Premises and equipment, net | 203,217,000 | 204,449,000 | ||||
Accrued interest receivable | 23,381,000 | 19,365,000 | ||||
Mortgage-servicing rights | 9,647,000 | 9,101,000 | ||||
Low-income housing investments | 61,632,000 | 66,302,000 | ||||
Real estate acquired in settlement of loans, net | 43,000 | 0 | ||||
Other | 54,851,000 | 54,929,000 | ||||
Other | 512,722,000 | 511,611,000 | ||||
Other liabilities | ||||||
Accrued expenses | 40,382,000 | 45,822,000 | ||||
Federal and state income taxes payable | 18,021,000 | 14,996,000 | ||||
Cashier’s checks | 25,284,000 | 23,647,000 | ||||
Advance payments by borrowers | 10,458,000 | 10,486,000 | ||||
Other | 64,199,000 | 52,003,000 | ||||
Total other liabilities | 158,344,000 | 146,954,000 | ||||
Balance Sheet related disclosures | ||||||
Held-to-maturity investment securities | 131,131,000 | 143,467,000 | ||||
Securities sold under agreements to repurchase | 95,000,000 | 115,000,000 | ||||
Advances from the Federal Home Loan Bank | $ 30,000,000 | $ 0 |
Bank segment - Components of in
Bank segment - Components of investment securities (Details) $ in Thousands | Jun. 30, 2020USD ($)issue | Dec. 31, 2019USD ($)issue |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | $ 1,360,585 | $ 1,229,438 |
Gross unrealized gains | 29,328 | 8,015 |
Gross unrealized losses | (280) | (4,627) |
Estimated fair value | $ 1,389,633 | $ 1,232,826 |
Gross unrealized losses, Less than 12 months, Number of issues | issue | 6 | 21 |
Gross unrealized losses, Less than 12 months, Fair value | $ 96,296 | $ 156,181 |
Gross unrealized losses, Less than 12 months, Amount | $ (258) | $ (830) |
Gross unrealized losses, 12 months or longer, Number of issues | issue | 1 | 78 |
Gross unrealized losses, 12 months or longer, Fair value | $ 1,803 | $ 345,657 |
Gross unrealized losses, 12 months or longer, Amount | (22) | (3,797) |
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized cost | 124,623 | 139,451 |
Gross unrealized gains | 6,508 | 4,087 |
Gross unrealized losses | 0 | (71) |
Held-to-maturity investment securities | $ 131,131 | $ 143,467 |
Less Than 12 Months: Number Of Issues | issue | 0 | 1 |
Less than 12 Months: Fair value | $ 0 | $ 12,986 |
Less than 12 Months: Amount | $ 0 | $ (71) |
12 months or longer: Number of issues | issue | 0 | 0 |
12 months or longer: Fair value | $ 0 | $ 0 |
12 months or longer: Amount | 0 | 0 |
U.S. Treasury and federal agency obligations | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 100,195 | 117,255 |
Gross unrealized gains | 2,219 | 652 |
Gross unrealized losses | 0 | (120) |
Estimated fair value | $ 102,414 | $ 117,787 |
Gross unrealized losses, Less than 12 months, Number of issues | issue | 0 | 2 |
Gross unrealized losses, Less than 12 months, Fair value | $ 0 | $ 4,110 |
Gross unrealized losses, Less than 12 months, Amount | $ 0 | $ (11) |
Gross unrealized losses, 12 months or longer, Number of issues | issue | 0 | 3 |
Gross unrealized losses, 12 months or longer, Fair value | $ 0 | $ 27,637 |
Gross unrealized losses, 12 months or longer, Amount | 0 | (109) |
Mortgage-backed securities* | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 1,201,796 | 1,024,892 |
Gross unrealized gains | 25,469 | 6,000 |
Gross unrealized losses | (280) | (4,507) |
Estimated fair value | $ 1,226,985 | $ 1,026,385 |
Gross unrealized losses, Less than 12 months, Number of issues | issue | 6 | 19 |
Gross unrealized losses, Less than 12 months, Fair value | $ 96,296 | $ 152,071 |
Gross unrealized losses, Less than 12 months, Amount | $ (258) | $ (819) |
Gross unrealized losses, 12 months or longer, Number of issues | issue | 1 | 75 |
Gross unrealized losses, 12 months or longer, Fair value | $ 1,803 | $ 318,020 |
Gross unrealized losses, 12 months or longer, Amount | (22) | (3,688) |
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized cost | 124,623 | 139,451 |
Gross unrealized gains | 6,508 | 4,087 |
Gross unrealized losses | 0 | (71) |
Held-to-maturity investment securities | $ 131,131 | $ 143,467 |
Less Than 12 Months: Number Of Issues | issue | 0 | 1 |
Less than 12 Months: Fair value | $ 0 | $ 12,986 |
Less than 12 Months: Amount | $ 0 | $ (71) |
12 months or longer: Number of issues | issue | 0 | 0 |
12 months or longer: Fair value | $ 0 | $ 0 |
12 months or longer: Amount | 0 | 0 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 29,767 | 58,694 |
Gross unrealized gains | 1,640 | 1,363 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | $ 31,407 | $ 60,057 |
Gross unrealized losses, Less than 12 months, Number of issues | issue | 0 | 0 |
Gross unrealized losses, Less than 12 months, Fair value | $ 0 | $ 0 |
Gross unrealized losses, Less than 12 months, Amount | $ 0 | $ 0 |
Gross unrealized losses, 12 months or longer, Number of issues | issue | 0 | 0 |
Gross unrealized losses, 12 months or longer, Fair value | $ 0 | $ 0 |
Gross unrealized losses, 12 months or longer, Amount | 0 | 0 |
Mortgage revenue bonds | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 28,827 | 28,597 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | $ 28,827 | $ 28,597 |
Gross unrealized losses, Less than 12 months, Number of issues | issue | 0 | 0 |
Gross unrealized losses, Less than 12 months, Fair value | $ 0 | |
Gross unrealized losses, Less than 12 months, Amount | $ 0 | |
Gross unrealized losses, 12 months or longer, Number of issues | issue | 0 | 0 |
Gross unrealized losses, 12 months or longer, Fair value | $ 0 | $ 0 |
Gross unrealized losses, 12 months or longer, Amount | $ 0 | $ 0 |
Bank segment - Contractual matu
Bank segment - Contractual maturities of securities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Due in one year or less | $ 65,330 | |
Due after one year through five years | 44,570 | |
Due after five years through ten years | 33,462 | |
Due after ten years | 15,427 | |
Total amortized cost | 158,789 | |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,201,796 | |
Amortized cost | 1,360,585 | $ 1,229,438 |
Held-to-Maturity, Debt Securities, Amortized Cost [Abstract] | ||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 124,623 | |
Amortized cost | 124,623 | 139,451 |
Available-for-sale Securities, Debt Securities, Fair Value [Abstract] | ||
Due in one year or less | 65,776 | |
Due after one year through five years | 46,378 | |
Due after five years through ten years | 35,067 | |
Due after ten years | 15,427 | |
Total fair value | 162,648 | |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,226,985 | |
Total available-for-sale securities | 1,389,633 | 1,232,826 |
Held-to-maturity Securities, Debt Securities, Fair Value [Abstract] | ||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 131,131 | |
Total held-to-maturity securities | $ 131,131 | $ 143,467 |
Bank segment - Available-for-sa
Bank segment - Available-for-sale securities, narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Bank Subsidiary [Abstract] | ||||
Proceeds from sale of available-for-sale investment securities | $ 169,200,000 | $ 0 | $ 169,157,000 | $ 0 |
Gross realized gains on available-for-sale securities | 9,300,000 | 0 | 9,300,000 | 0 |
Gross realized losses on available-for-sale securities | 0 | $ 0 | 0 | $ 0 |
Tax expense on realized gains | $ 2,500,000 | $ 2,500,000 |
Bank segment - Loans receivable
Bank segment - Loans receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 5,450,802 | $ 5,120,664 | ||||
Deferred fees and discounts | (12,985) | 512 | ||||
Allowance for credit losses | (81,307) | $ (77,084) | (53,355) | $ (58,425) | $ (54,297) | $ (52,119) |
Total financing receivables | $ 5,356,510 | 5,067,821 | ||||
Minimum benchmark percentage of loan to appraisal ratio which mortgage insurance is required | 80.00% | |||||
Real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 4,160,943 | 4,192,069 | ||||
Real estate | Residential 1-4 family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 2,123,226 | 2,178,135 | ||||
Allowance for credit losses | (3,911) | (4,476) | (2,380) | (2,015) | (1,911) | (1,976) |
Real estate | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 855,566 | 824,830 | ||||
Allowance for credit losses | (21,100) | (16,587) | (15,053) | (15,811) | (14,825) | (14,505) |
Total financing receivables | 824,830 | |||||
Real estate | Home equity line of credit | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 1,065,264 | 1,092,125 | ||||
Allowance for credit losses | (6,214) | (6,225) | (6,922) | (6,881) | (6,493) | (6,371) |
Real estate | Residential land | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 13,224 | 14,704 | ||||
Allowance for credit losses | (356) | (352) | (449) | (537) | (425) | (479) |
Real estate | Commercial construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 92,904 | 70,605 | ||||
Allowance for credit losses | (4,757) | (3,446) | (2,097) | (2,046) | (2,843) | (2,790) |
Total financing receivables | 70,605 | |||||
Real estate | Residential construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 10,759 | 11,670 | ||||
Allowance for credit losses | (14) | (14) | (3) | (2) | (3) | (4) |
Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 1,073,829 | 670,674 | ||||
Allowance for credit losses | (13,868) | (12,977) | (10,245) | (13,073) | (10,814) | (9,225) |
Total financing receivables | 670,674 | |||||
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 216,030 | 257,921 | ||||
Allowance for credit losses | $ (31,087) | $ (33,007) | $ (16,206) | $ (18,060) | $ (16,983) | $ (16,769) |
Bank segment - Allowance for cr
Bank segment - Allowance for credit losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | $ 77,084 | $ 54,297 | $ 53,355 | $ 52,119 | |
Charge-offs | (7,380) | (5,624) | (14,011) | (11,815) | |
Recoveries | 770 | 2,064 | 1,788 | 3,563 | |
Provision | 10,833 | 7,688 | 20,734 | 14,558 | |
Valuation allowance, balance at the end of the period | 81,307 | 58,425 | 81,307 | 58,425 | |
Total | 5,450,802 | 5,450,802 | $ 5,120,664 | ||
Ending balance: individually evaluated for impairment | 2,691 | ||||
Ending balance: collectively evaluated for impairment | 50,664 | ||||
Financing Receivables: | |||||
Loans and leases receivable before fees, gross | 5,356,510 | 5,356,510 | 5,067,821 | ||
Ending balance: individually evaluated for impairment | 40,737 | ||||
Ending balance: collectively evaluated for impairment | 5,079,927 | ||||
Real estate | |||||
Allowance for credit losses: | |||||
Total | 4,160,943 | 4,160,943 | 4,192,069 | ||
Real estate | Residential 1-4 family | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | 4,476 | 1,911 | 2,380 | 1,976 | |
Charge-offs | (7) | (5) | (7) | (19) | |
Recoveries | 2 | 8 | 55 | 617 | |
Provision | (560) | 101 | (667) | (559) | |
Valuation allowance, balance at the end of the period | 3,911 | 2,015 | 3,911 | 2,015 | |
Total | 2,123,226 | 2,123,226 | 2,178,135 | ||
Ending balance: individually evaluated for impairment | 898 | ||||
Ending balance: collectively evaluated for impairment | 1,482 | ||||
Financing Receivables: | |||||
Ending balance: individually evaluated for impairment | 15,600 | ||||
Ending balance: collectively evaluated for impairment | 2,162,535 | ||||
Real estate | Commercial real estate | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | 16,587 | 14,825 | 15,053 | 14,505 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 4,513 | 986 | 5,839 | 1,306 | |
Valuation allowance, balance at the end of the period | 21,100 | 15,811 | 21,100 | 15,811 | |
Total | 855,566 | 855,566 | 824,830 | ||
Ending balance: individually evaluated for impairment | 2 | ||||
Ending balance: collectively evaluated for impairment | 15,051 | ||||
Financing Receivables: | |||||
Loans and leases receivable before fees, gross | 824,830 | ||||
Ending balance: individually evaluated for impairment | 1,048 | ||||
Ending balance: collectively evaluated for impairment | 823,782 | ||||
Real estate | Home equity line of credit | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | 6,225 | 6,493 | 6,922 | 6,371 | |
Charge-offs | 0 | (19) | 0 | (19) | |
Recoveries | 0 | 4 | 6 | 9 | |
Provision | (11) | 403 | (173) | 520 | |
Valuation allowance, balance at the end of the period | 6,214 | 6,881 | 6,214 | 6,881 | |
Total | 1,065,264 | 1,065,264 | 1,092,125 | ||
Ending balance: individually evaluated for impairment | 322 | ||||
Ending balance: collectively evaluated for impairment | 6,600 | ||||
Financing Receivables: | |||||
Ending balance: individually evaluated for impairment | 12,073 | ||||
Ending balance: collectively evaluated for impairment | 1,080,052 | ||||
Real estate | Residential land | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | 352 | 425 | 449 | 479 | |
Charge-offs | (343) | (4) | (351) | (4) | |
Recoveries | 5 | 7 | 14 | 14 | |
Provision | 342 | 109 | 308 | 48 | |
Valuation allowance, balance at the end of the period | 356 | 537 | 356 | 537 | |
Total | 13,224 | 13,224 | 14,704 | ||
Ending balance: individually evaluated for impairment | 0 | ||||
Ending balance: collectively evaluated for impairment | 449 | ||||
Financing Receivables: | |||||
Ending balance: individually evaluated for impairment | 3,091 | ||||
Ending balance: collectively evaluated for impairment | 11,613 | ||||
Real estate | Commercial construction | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | 3,446 | 2,843 | 2,097 | 2,790 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 1,311 | (797) | 2,371 | (744) | |
Valuation allowance, balance at the end of the period | 4,757 | 2,046 | 4,757 | 2,046 | |
Total | 92,904 | 92,904 | 70,605 | ||
Ending balance: individually evaluated for impairment | 0 | ||||
Ending balance: collectively evaluated for impairment | 2,097 | ||||
Financing Receivables: | |||||
Loans and leases receivable before fees, gross | 70,605 | ||||
Ending balance: individually evaluated for impairment | 0 | ||||
Ending balance: collectively evaluated for impairment | 70,605 | ||||
Real estate | Residential construction | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | 14 | 3 | 3 | 4 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 0 | (1) | (3) | (2) | |
Valuation allowance, balance at the end of the period | 14 | 2 | 14 | 2 | |
Total | 10,759 | 10,759 | 11,670 | ||
Ending balance: individually evaluated for impairment | 0 | ||||
Ending balance: collectively evaluated for impairment | 3 | ||||
Financing Receivables: | |||||
Ending balance: individually evaluated for impairment | 0 | ||||
Ending balance: collectively evaluated for impairment | 11,670 | ||||
Commercial | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | 12,977 | 10,814 | 10,245 | 9,225 | |
Charge-offs | (699) | (494) | (1,068) | (1,112) | |
Recoveries | 106 | 1,281 | 292 | 1,461 | |
Provision | 1,484 | 1,472 | 3,477 | 3,499 | |
Valuation allowance, balance at the end of the period | 13,868 | 13,073 | 13,868 | 13,073 | |
Total | 1,073,829 | 1,073,829 | 670,674 | ||
Ending balance: individually evaluated for impairment | 1,015 | ||||
Ending balance: collectively evaluated for impairment | 9,230 | ||||
Financing Receivables: | |||||
Loans and leases receivable before fees, gross | 670,674 | ||||
Ending balance: individually evaluated for impairment | 8,418 | ||||
Ending balance: collectively evaluated for impairment | 662,256 | ||||
Consumer | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | 33,007 | 16,983 | 16,206 | 16,769 | |
Charge-offs | (6,331) | (5,102) | (12,585) | (10,661) | |
Recoveries | 657 | 764 | 1,421 | 1,462 | |
Provision | 3,754 | 5,415 | 9,582 | 10,490 | |
Valuation allowance, balance at the end of the period | 31,087 | $ 18,060 | 31,087 | $ 18,060 | |
Total | $ 216,030 | 216,030 | 257,921 | ||
Ending balance: individually evaluated for impairment | 454 | ||||
Ending balance: collectively evaluated for impairment | 15,752 | ||||
Financing Receivables: | |||||
Ending balance: individually evaluated for impairment | 507 | ||||
Ending balance: collectively evaluated for impairment | $ 257,414 | ||||
Impact of ASU No. 2016-13 | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | 19,441 | ||||
Impact of ASU No. 2016-13 | Real estate | Residential 1-4 family | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | 2,150 | ||||
Impact of ASU No. 2016-13 | Real estate | Commercial real estate | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | 208 | ||||
Impact of ASU No. 2016-13 | Real estate | Home equity line of credit | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | (541) | ||||
Impact of ASU No. 2016-13 | Real estate | Residential land | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | (64) | ||||
Impact of ASU No. 2016-13 | Real estate | Commercial construction | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | 289 | ||||
Impact of ASU No. 2016-13 | Real estate | Residential construction | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | 14 | ||||
Impact of ASU No. 2016-13 | Commercial | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | 922 | ||||
Impact of ASU No. 2016-13 | Consumer | |||||
Allowance for credit losses: | |||||
Valuation allowance, balance at the beginning of the period | $ 16,463 |
Bank segment - Allowance for lo
Bank segment - Allowance for loan commitments (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Allowance for loan commitments: | ||||
Beginning balance | $ 1,741 | $ 3,800 | $ 1,741 | |
Provision | 4,300 | 4,800 | ||
Ending balance | 8,100 | $ 8,100 | $ 1,741 | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | |
Real estate | Home equity line of credit | ||||
Allowance for loan commitments: | ||||
Beginning balance | $ 392 | 300 | $ 392 | |
Provision | 0 | 0 | ||
Ending balance | 300 | 300 | $ 392 | |
Real estate | Commercial construction | ||||
Allowance for loan commitments: | ||||
Beginning balance | 931 | 3,191 | 931 | |
Provision | 4,309 | 4,824 | ||
Ending balance | 7,500 | 7,500 | 931 | |
Commercial | ||||
Allowance for loan commitments: | ||||
Beginning balance | 418 | 309 | 418 | |
Provision | (9) | (24) | ||
Ending balance | $ 300 | 300 | 418 | |
Impact of ASU No. 2016-13 | ||||
Allowance for loan commitments: | ||||
Beginning balance | 1,559 | 1,559 | ||
Ending balance | 2,000 | 1,559 | ||
Impact of ASU No. 2016-13 | Real estate | Home equity line of credit | ||||
Allowance for loan commitments: | ||||
Beginning balance | (92) | (92) | ||
Ending balance | (92) | |||
Impact of ASU No. 2016-13 | Real estate | Commercial construction | ||||
Allowance for loan commitments: | ||||
Beginning balance | 1,745 | 1,745 | ||
Ending balance | 1,745 | |||
Impact of ASU No. 2016-13 | Commercial | ||||
Allowance for loan commitments: | ||||
Beginning balance | $ (94) | $ (94) | ||
Ending balance | $ (94) |
Bank segment - Credit risk prof
Bank segment - Credit risk profile - payment activity and assigned grades (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | $ 771,600 | |
December 31, 2019 | 695,446 | |
December 31, 2018 | 488,691 | |
December 31, 2017 | 407,684 | |
December 31, 2016 | 408,551 | |
Prior | 1,391,212 | |
Revolving | 1,221,590 | |
Converted to term loans | 66,028 | |
Total | 5,450,802 | $ 5,120,664 |
Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 4,160,943 | 4,192,069 |
Real estate | Residential 1-4 family | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 176,536 | |
December 31, 2019 | 272,951 | |
December 31, 2018 | 165,584 | |
December 31, 2017 | 258,464 | |
December 31, 2016 | 215,920 | |
Prior | 1,033,771 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 2,123,226 | 2,178,135 |
Real estate | Home equity line of credit | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 1,030,145 | |
Converted to term loans | 35,119 | |
Total | 1,065,264 | 1,092,125 |
Conversion of debt | 8,700 | |
Real estate | Residential land | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 2,095 | |
December 31, 2019 | 4,975 | |
December 31, 2018 | 2,024 | |
December 31, 2017 | 2,041 | |
December 31, 2016 | 22 | |
Prior | 2,067 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 13,224 | 14,704 |
Real estate | Residential construction | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 2,725 | |
December 31, 2019 | 5,034 | |
December 31, 2018 | 974 | |
December 31, 2017 | 2,026 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 10,759 | 11,670 |
Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 99,566 | |
December 31, 2019 | 119,500 | |
December 31, 2018 | 134,836 | |
December 31, 2017 | 65,395 | |
December 31, 2016 | 129,333 | |
Prior | 289,717 | |
Revolving | 17,219 | |
Converted to term loans | 0 | |
Total | 855,566 | 824,830 |
Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 7,752 | |
December 31, 2019 | 13,458 | |
December 31, 2018 | 29,873 | |
December 31, 2017 | 18,000 | |
December 31, 2016 | 7,472 | |
Prior | 2,289 | |
Revolving | 14,060 | |
Converted to term loans | 0 | |
Total | 92,904 | 70,605 |
Consumer | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 25,469 | |
December 31, 2019 | 90,480 | |
December 31, 2018 | 56,187 | |
December 31, 2017 | 15,772 | |
December 31, 2016 | 1,717 | |
Prior | 505 | |
Revolving | 22,563 | |
Converted to term loans | 3,337 | |
Total | 216,030 | 257,921 |
Conversion of debt | 1,400 | |
Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 457,457 | |
December 31, 2019 | 189,048 | |
December 31, 2018 | 99,213 | |
December 31, 2017 | 45,986 | |
December 31, 2016 | 54,087 | |
Prior | 62,863 | |
Revolving | 137,603 | |
Converted to term loans | 27,572 | |
Total | 1,073,829 | $ 670,674 |
Conversion of debt | 13,700 | |
Pass | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 89,882 | |
December 31, 2019 | 77,350 | |
December 31, 2018 | 78,115 | |
December 31, 2017 | 29,390 | |
December 31, 2016 | 56,246 | |
Prior | 172,941 | |
Revolving | 17,219 | |
Converted to term loans | 0 | |
Total | 521,143 | |
Pass | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 6,933 | |
December 31, 2019 | 13,458 | |
December 31, 2018 | 29,873 | |
December 31, 2017 | 0 | |
December 31, 2016 | 7,472 | |
Prior | 0 | |
Revolving | 14,060 | |
Converted to term loans | 0 | |
Total | 71,796 | |
Pass | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 450,699 | |
December 31, 2019 | 154,672 | |
December 31, 2018 | 94,309 | |
December 31, 2017 | 33,771 | |
December 31, 2016 | 13,876 | |
Prior | 38,911 | |
Revolving | 92,475 | |
Converted to term loans | 14,868 | |
Total | 893,581 | |
Special Mention | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 9,684 | |
December 31, 2019 | 41,662 | |
December 31, 2018 | 54,791 | |
December 31, 2017 | 35,400 | |
December 31, 2016 | 69,418 | |
Prior | 60,098 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 271,053 | |
Special Mention | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 819 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 18,000 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 18,819 | |
Special Mention | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 6,593 | |
December 31, 2019 | 29,695 | |
December 31, 2018 | 4,759 | |
December 31, 2017 | 10,578 | |
December 31, 2016 | 38,970 | |
Prior | 20,813 | |
Revolving | 44,521 | |
Converted to term loans | 11,222 | |
Total | 167,151 | |
Substandard | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 488 | |
December 31, 2018 | 1,930 | |
December 31, 2017 | 605 | |
December 31, 2016 | 3,669 | |
Prior | 56,678 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 63,370 | |
Substandard | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 2,289 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 2,289 | |
Substandard | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 165 | |
December 31, 2019 | 4,681 | |
December 31, 2018 | 145 | |
December 31, 2017 | 1,637 | |
December 31, 2016 | 1,241 | |
Prior | 3,139 | |
Revolving | 607 | |
Converted to term loans | 1,482 | |
Total | 13,097 | |
Doubtful | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 0 | |
Doubtful | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 0 | |
Doubtful | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 0 | |
Current | Real estate | Residential 1-4 family | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 176,536 | |
December 31, 2019 | 272,951 | |
December 31, 2018 | 165,584 | |
December 31, 2017 | 258,111 | |
December 31, 2016 | 215,920 | |
Prior | 1,029,434 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 2,118,536 | |
Current | Real estate | Home equity line of credit | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 1,027,589 | |
Converted to term loans | 33,797 | |
Total | 1,061,386 | |
Current | Real estate | Residential land | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 2,095 | |
December 31, 2019 | 4,975 | |
December 31, 2018 | 2,024 | |
December 31, 2017 | 2,041 | |
December 31, 2016 | 22 | |
Prior | 2,067 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 13,224 | |
Current | Real estate | Residential construction | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 2,725 | |
December 31, 2019 | 5,034 | |
December 31, 2018 | 974 | |
December 31, 2017 | 2,026 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 10,759 | |
Current | Consumer | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 25,186 | |
December 31, 2019 | 87,908 | |
December 31, 2018 | 53,640 | |
December 31, 2017 | 14,851 | |
December 31, 2016 | 1,602 | |
Prior | 505 | |
Revolving | 21,691 | |
Converted to term loans | 3,062 | |
Total | 208,445 | |
30-59 days past due | Real estate | Residential 1-4 family | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 2,192 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 2,192 | |
30-59 days past due | Real estate | Home equity line of credit | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 790 | |
Converted to term loans | 312 | |
Total | 1,102 | |
30-59 days past due | Real estate | Residential land | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 0 | |
30-59 days past due | Real estate | Residential construction | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 0 | |
30-59 days past due | Consumer | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 105 | |
December 31, 2019 | 573 | |
December 31, 2018 | 583 | |
December 31, 2017 | 229 | |
December 31, 2016 | 18 | |
Prior | 0 | |
Revolving | 200 | |
Converted to term loans | 44 | |
Total | 1,752 | |
60-89 days past due | Real estate | Residential 1-4 family | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 606 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 606 | |
60-89 days past due | Real estate | Home equity line of credit | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 408 | |
Converted to term loans | 175 | |
Total | 583 | |
60-89 days past due | Real estate | Residential land | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 0 | |
60-89 days past due | Real estate | Residential construction | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 0 | |
60-89 days past due | Consumer | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 83 | |
December 31, 2019 | 741 | |
December 31, 2018 | 792 | |
December 31, 2017 | 209 | |
December 31, 2016 | 24 | |
Prior | 0 | |
Revolving | 248 | |
Converted to term loans | 67 | |
Total | 2,164 | |
Greater than 89 days past due | Real estate | Residential 1-4 family | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 353 | |
December 31, 2016 | 0 | |
Prior | 1,539 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 1,892 | |
Greater than 89 days past due | Real estate | Home equity line of credit | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 1,358 | |
Converted to term loans | 835 | |
Total | 2,193 | |
Greater than 89 days past due | Real estate | Residential land | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 0 | |
Greater than 89 days past due | Real estate | Residential construction | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 0 | |
December 31, 2019 | 0 | |
December 31, 2018 | 0 | |
December 31, 2017 | 0 | |
December 31, 2016 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Converted to term loans | 0 | |
Total | 0 | |
Greater than 89 days past due | Consumer | ||
Credit risk profile by internally assigned grade for loans | ||
June 30, 2020 | 95 | |
December 31, 2019 | 1,258 | |
December 31, 2018 | 1,172 | |
December 31, 2017 | 483 | |
December 31, 2016 | 73 | |
Prior | 0 | |
Revolving | 424 | |
Converted to term loans | 164 | |
Total | $ 3,669 |
Bank segment - Credit risk pr_2
Bank segment - Credit risk profile - payment activity (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | $ 20,572 | $ 19,751 |
Financing receivable, current | 5,430,230 | 5,100,913 |
Total | 5,450,802 | 5,120,664 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total | 4,160,943 | 4,192,069 |
Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 4,690 | 4,686 |
Financing receivable, current | 2,118,536 | 2,173,449 |
Total | 2,123,226 | 2,178,135 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 642 | 0 |
Financing receivable, current | 854,924 | 824,830 |
Total | 855,566 | 824,830 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 3,878 | 2,930 |
Financing receivable, current | 1,061,386 | 1,089,195 |
Total | 1,065,264 | 1,092,125 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 0 | 25 |
Financing receivable, current | 13,224 | 14,679 |
Total | 13,224 | 14,704 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 2,289 | 0 |
Financing receivable, current | 90,615 | 70,605 |
Total | 92,904 | 70,605 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 0 | 0 |
Financing receivable, current | 10,759 | 11,670 |
Total | 10,759 | 11,670 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Commercial | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 1,488 | 1,560 |
Financing receivable, current | 1,072,341 | 669,114 |
Total | 1,073,829 | 670,674 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Consumer | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 7,585 | 10,550 |
Financing receivable, current | 208,445 | 247,371 |
Total | 216,030 | 257,921 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 6,149 | 8,864 |
30-59 days past due | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 2,192 | 2,588 |
Total | 2,192 | |
30-59 days past due | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 642 | 0 |
30-59 days past due | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 1,102 | 813 |
Total | 1,102 | |
30-59 days past due | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 0 | 0 |
Total | 0 | |
30-59 days past due | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 0 | 0 |
30-59 days past due | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 0 | 0 |
Total | 0 | |
30-59 days past due | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 461 | 1,077 |
30-59 days past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 1,752 | 4,386 |
Total | 1,752 | |
60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 3,928 | 3,858 |
60-89 days past due | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 606 | 290 |
Total | 606 | |
60-89 days past due | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 0 | 0 |
60-89 days past due | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 583 | 0 |
Total | 583 | |
60-89 days past due | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 0 | 0 |
Total | 0 | |
60-89 days past due | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 0 | 0 |
60-89 days past due | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 0 | 0 |
Total | 0 | |
60-89 days past due | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 575 | 311 |
60-89 days past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 2,164 | 3,257 |
Total | 2,164 | |
90 days or more past due | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 10,495 | 7,029 |
90 days or more past due | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 1,892 | 1,808 |
Total | 1,892 | |
90 days or more past due | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 0 | 0 |
90 days or more past due | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 2,193 | 2,117 |
Total | 2,193 | |
90 days or more past due | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 0 | 25 |
Total | 0 | |
90 days or more past due | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 2,289 | 0 |
90 days or more past due | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 0 | 0 |
Total | 0 | |
90 days or more past due | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 452 | 172 |
90 days or more past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Financing receivable, past due | 3,669 | $ 2,907 |
Total | $ 3,669 |
Bank segment - Credit risk pr_3
Bank segment - Credit risk profile - nonaccrual loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Credit risk profile based on nonaccrual loans | |||
With a Related ACL | $ 36,327 | ||
Without a Related ACL | 10,652 | ||
Total | 46,979 | $ 29,736 | |
Total troubled debt restructuring loans not included above | $ 26,413 | 24,378 | |
Real estate | Residential 1-4 family | |||
Credit risk profile based on nonaccrual loans | |||
With a Related ACL | 7,584 | ||
Without a Related ACL | 3,395 | ||
Total | 10,979 | 11,395 | |
Total troubled debt restructuring loans not included above | 9,869 | 8,667 | |
Real estate | Commercial real estate | |||
Credit risk profile based on nonaccrual loans | |||
With a Related ACL | 16,241 | ||
Without a Related ACL | 0 | ||
Total | 16,241 | 195 | |
Total troubled debt restructuring loans not included above | 853 | 1,016 | |
Real estate | Home equity line of credit | |||
Credit risk profile based on nonaccrual loans | |||
With a Related ACL | 6,249 | ||
Without a Related ACL | 1,616 | ||
Total | 7,865 | 6,638 | |
Total troubled debt restructuring loans not included above | 10,376 | 9,430 | |
Real estate | Residential land | |||
Credit risk profile based on nonaccrual loans | |||
With a Related ACL | 0 | ||
Without a Related ACL | 413 | ||
Total | 413 | 448 | |
Total troubled debt restructuring loans not included above | 2,644 | 2,007 | |
Real estate | Commercial construction | |||
Credit risk profile based on nonaccrual loans | |||
With a Related ACL | 0 | ||
Without a Related ACL | 2,289 | ||
Total | 2,289 | 0 | |
Total troubled debt restructuring loans not included above | 0 | 0 | |
Real estate | Residential construction | |||
Credit risk profile based on nonaccrual loans | |||
With a Related ACL | 0 | ||
Without a Related ACL | 0 | ||
Total | 0 | 0 | |
Total troubled debt restructuring loans not included above | 0 | 0 | |
Commercial | |||
Credit risk profile based on nonaccrual loans | |||
With a Related ACL | 616 | ||
Without a Related ACL | 2,939 | ||
Total | 3,555 | 5,947 | |
Total troubled debt restructuring loans not included above | 2,614 | 3,203 | |
Consumer | |||
Credit risk profile based on nonaccrual loans | |||
With a Related ACL | 5,637 | ||
Without a Related ACL | 0 | ||
Total | 5,637 | $ 5,113 | |
Total troubled debt restructuring loans not included above | $ 57 | $ 55 |
Bank segment - Troubled debt re
Bank segment - Troubled debt restructuring - narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Troubled debt restructurings | |||
Nonaccrual loans with no related allowance | $ 10,652 | $ 10,652 | |
Troubled debt restructurings real estate loans | |||
Troubled debt restructurings | |||
Financing receivable modifications minimum, period of payment default of loans determined to be TDRs (in days) | 90 days | 90 days | |
Commitments to lend additional funds to borrows with impaired or modified loans | $ 0 | $ 0 | $ 0 |
Consumer mortgage loans collateralized by residential real estate property in foreclosure process | $ 3,000 | $ 3,000 | $ 3,500 |
Bank segment - Loan modificatio
Bank segment - Loan modifications (Details) - Troubled debt restructurings real estate loans $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)contract | Jun. 30, 2019USD ($)contract | Jun. 30, 2020USD ($)contract | Jun. 30, 2019USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 4 | 7 | 11 | 17 |
Outstanding recorded investment | $ 349 | $ 2,922 | $ 17,677 | $ 4,265 |
Net increase in allowance | $ 3 | $ 346 | $ 4,586 | $ 394 |
Real estate | Residential 1-4 family | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 0 | 1 | 1 | 9 |
Outstanding recorded investment | $ 0 | $ 469 | $ 147 | $ 1,501 |
Net increase in allowance | $ 0 | $ 154 | $ 7 | $ 161 |
Real estate | Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 2 | 0 |
Outstanding recorded investment | $ 0 | $ 0 | $ 16,430 | $ 0 |
Net increase in allowance | $ 0 | $ 0 | $ 4,301 | $ 0 |
Real estate | Home equity line of credit | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 2 | 2 | 2 | 3 |
Outstanding recorded investment | $ 19 | $ 311 | $ 19 | $ 432 |
Net increase in allowance | $ 3 | $ 59 | $ 3 | $ 83 |
Real estate | Residential land | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 2 | 2 | 2 | 2 |
Outstanding recorded investment | $ 330 | $ 825 | $ 330 | $ 825 |
Net increase in allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Real estate | Commercial construction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Net increase in allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Real estate | Residential construction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Net increase in allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 0 | 2 | 4 | 3 |
Outstanding recorded investment | $ 0 | $ 1,317 | $ 751 | $ 1,507 |
Net increase in allowance | $ 0 | $ 133 | $ 275 | $ 150 |
Consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Net increase in allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Bank segment - Collateral-depen
Bank segment - Collateral-dependent loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | $ 5,450,802 | $ 5,120,664 |
Real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 4,160,943 | 4,192,069 |
Real estate | Residential 1-4 family | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 2,123,226 | 2,178,135 |
Real estate | Home equity line of credit | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 1,065,264 | 1,092,125 |
Real estate | Commercial construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 92,904 | 70,605 |
Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 1,073,829 | $ 670,674 |
Residential real estate property | Real estate | Residential 1-4 family | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 1,795 | |
Residential real estate property | Real estate | Home equity line of credit | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 1,387 | |
Commercial real estate | Real estate | Commercial construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 2,289 | |
Business assets | Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 90 | |
Collateral Pledged | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 5,561 | |
Collateral Pledged | Real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | $ 5,471 |
Bank segment - Credit risk pr_4
Bank segment - Credit risk profile - assigned grades (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | $ 5,356,510 | $ 5,067,821 |
Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 824,830 | |
Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 70,605 | |
Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 670,674 | |
Commercial Real Estate, Commercial Construction And Commercial Portfolio Segment | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 1,566,109 | |
Pass | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 756,747 | |
Pass | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 68,316 | |
Pass | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 621,657 | |
Pass | Commercial Real Estate, Commercial Construction And Commercial Portfolio Segment | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 1,446,720 | |
Special Mention | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 4,451 | |
Special Mention | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | |
Special Mention | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 29,921 | |
Special Mention | Commercial Real Estate, Commercial Construction And Commercial Portfolio Segment | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 34,372 | |
Substandard | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 63,632 | |
Substandard | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 2,289 | |
Substandard | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 19,096 | |
Substandard | Commercial Real Estate, Commercial Construction And Commercial Portfolio Segment | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 85,017 | |
Doubtful | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | |
Doubtful | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | |
Doubtful | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | |
Doubtful | Commercial Real Estate, Commercial Construction And Commercial Portfolio Segment | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | |
Loss | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | |
Loss | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | |
Loss | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | |
Loss | Commercial Real Estate, Commercial Construction And Commercial Portfolio Segment | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | $ 0 |
Bank segment - Principal balanc
Bank segment - Principal balance of impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | |
Recorded investment: | |||
With no related allowance recorded | $ 14,037 | ||
With an allowance recorded | 26,700 | ||
Recorded investment | 40,737 | ||
Unpaid principal balance: | |||
With no related allowance recorded | 15,123 | ||
With an allowance recorded | 26,762 | ||
Unpaid principal balance | 41,885 | ||
Related Allowance | 2,691 | ||
Average recorded investment: | |||
With no related allowance recorded | $ 17,870 | $ 17,218 | |
With an allowance recorded | 32,363 | 29,161 | |
Average recorded investment | 50,233 | 46,379 | |
Interest income recognized: | |||
With no related allowance recorded | 165 | 363 | |
With an allowance recorded | 288 | 538 | |
Interest income recognized | 453 | 901 | |
Real estate | Residential 1-4 family | |||
Recorded investment: | |||
With no related allowance recorded | 6,817 | ||
With an allowance recorded | 8,783 | ||
Recorded investment | 15,600 | ||
Unpaid principal balance: | |||
With no related allowance recorded | 7,207 | ||
With an allowance recorded | 8,835 | ||
Unpaid principal balance | 16,042 | ||
Related Allowance | 898 | ||
Average recorded investment: | |||
With no related allowance recorded | 8,993 | 8,492 | |
With an allowance recorded | 8,440 | 8,417 | |
Average recorded investment | 17,433 | 16,909 | |
Interest income recognized: | |||
With no related allowance recorded | 87 | 247 | |
With an allowance recorded | 96 | 179 | |
Interest income recognized | 183 | 426 | |
Real estate | Commercial real estate | |||
Recorded investment: | |||
With no related allowance recorded | 195 | ||
With an allowance recorded | 853 | ||
Recorded investment | 1,048 | ||
Unpaid principal balance: | |||
With no related allowance recorded | 200 | ||
With an allowance recorded | 853 | ||
Unpaid principal balance | 1,053 | ||
Related Allowance | 2 | ||
Average recorded investment: | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 894 | 900 | |
Average recorded investment | 894 | 900 | |
Interest income recognized: | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 9 | 19 | |
Interest income recognized | 9 | 19 | |
Real estate | Home equity line of credit | |||
Recorded investment: | |||
With no related allowance recorded | 1,984 | ||
With an allowance recorded | 10,089 | ||
Recorded investment | 12,073 | ||
Unpaid principal balance: | |||
With no related allowance recorded | 2,135 | ||
With an allowance recorded | 10,099 | ||
Unpaid principal balance | 12,234 | ||
Related Allowance | 322 | ||
Average recorded investment: | |||
With no related allowance recorded | 1,940 | 2,238 | |
With an allowance recorded | 11,665 | 11,743 | |
Average recorded investment | 13,605 | 13,981 | |
Interest income recognized: | |||
With no related allowance recorded | 54 | 66 | |
With an allowance recorded | 152 | 282 | |
Interest income recognized | 206 | 348 | |
Real estate | Residential land | |||
Recorded investment: | |||
With no related allowance recorded | 3,091 | ||
With an allowance recorded | 0 | ||
Recorded investment | 3,091 | ||
Unpaid principal balance: | |||
With no related allowance recorded | 3,294 | ||
With an allowance recorded | 0 | ||
Unpaid principal balance | 3,294 | ||
Related Allowance | 0 | ||
Average recorded investment: | |||
With no related allowance recorded | 2,280 | 2,158 | |
With an allowance recorded | 79 | 54 | |
Average recorded investment | 2,359 | 2,212 | |
Interest income recognized: | |||
With no related allowance recorded | 24 | 50 | |
With an allowance recorded | 0 | 0 | |
Interest income recognized | 24 | 50 | |
Real estate | Commercial construction | |||
Recorded investment: | |||
With no related allowance recorded | 0 | ||
With an allowance recorded | 0 | ||
Recorded investment | 0 | ||
Unpaid principal balance: | |||
With no related allowance recorded | 0 | ||
With an allowance recorded | 0 | ||
Unpaid principal balance | 0 | ||
Related Allowance | 0 | ||
Average recorded investment: | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Average recorded investment | 0 | 0 | |
Interest income recognized: | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Interest income recognized | 0 | 0 | |
Real estate | Residential construction | |||
Recorded investment: | |||
With no related allowance recorded | 0 | ||
With an allowance recorded | 0 | ||
Recorded investment | 0 | ||
Unpaid principal balance: | |||
With no related allowance recorded | 0 | ||
With an allowance recorded | 0 | ||
Unpaid principal balance | 0 | ||
Related Allowance | 0 | ||
Average recorded investment: | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Average recorded investment | 0 | 0 | |
Interest income recognized: | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Interest income recognized | 0 | 0 | |
Commercial | |||
Recorded investment: | |||
With no related allowance recorded | 1,948 | ||
With an allowance recorded | 6,470 | ||
Recorded investment | 8,418 | ||
Unpaid principal balance: | |||
With no related allowance recorded | 2,285 | ||
With an allowance recorded | 6,470 | ||
Unpaid principal balance | 8,755 | ||
Related Allowance | 1,015 | ||
Average recorded investment: | |||
With no related allowance recorded | 4,626 | 4,299 | |
With an allowance recorded | 10,997 | 7,874 | |
Average recorded investment | 15,623 | 12,173 | |
Interest income recognized: | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 30 | 56 | |
Interest income recognized | 30 | 56 | |
Consumer | |||
Recorded investment: | |||
With no related allowance recorded | 2 | ||
With an allowance recorded | 505 | ||
Recorded investment | 507 | ||
Unpaid principal balance: | |||
With no related allowance recorded | 2 | ||
With an allowance recorded | 505 | ||
Unpaid principal balance | 507 | ||
Related Allowance | $ 454 | ||
Average recorded investment: | |||
With no related allowance recorded | 31 | 31 | |
With an allowance recorded | 288 | 173 | |
Average recorded investment | 319 | 204 | |
Interest income recognized: | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 1 | 2 | |
Interest income recognized | $ 1 | $ 2 |
Bank segment - Mortgage servici
Bank segment - Mortgage servicing rights (Details) - American Savings Bank (ASB) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | |
Servicing Asset at Amortized Cost [Line Items] | |||||||
Repurchase reserve | $ 100 | $ 100 | |||||
Mortgage service fees | $ 800 | $ 800 | $ 1,600 | $ 1,500 | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||
Servicing asset - beginning balance | 9,101 | ||||||
Servicing asset - ending balance | 9,647 | 9,647 | |||||
Residential loan | |||||||
Servicing Asset at Amortized Cost [Line Items] | |||||||
Proceeds from sale of mortgage loans | 186,800 | 64,700 | 259,300 | 89,600 | |||
Gain on sale of mortgage loans | 6,300 | 1,000 | 8,300 | 1,600 | |||
Servicing contracts | |||||||
Servicing Asset at Amortized Cost [Line Items] | |||||||
Gross carrying amount | 23,904 | $ 21,543 | |||||
Accumulated amortization | (13,993) | (12,442) | |||||
Valuation allowance | 0 | 0 | 0 | 0 | (264) | 0 | 0 |
Net carrying amount | 9,647 | 9,101 | $ 8,103 | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||
Servicing asset - beginning balance | 9,120 | 7,897 | 9,101 | 8,062 | |||
Amount capitalized | 1,726 | 632 | 2,362 | 862 | |||
Amortization | (935) | (426) | (1,552) | (821) | |||
Other-than-temporary impairment | 0 | 0 | 0 | 0 | |||
Servicing asset - ending balance | 9,911 | 8,103 | 9,911 | 8,103 | |||
Valuation Allowance [Roll Forward] | |||||||
Valuation allowance, beginning balance | 0 | 0 | 0 | 0 | |||
Provision (recovery) | 264 | 0 | 264 | 0 | |||
Other-than-temporary impairment | 0 | 0 | 0 | 0 | |||
Valuation allowance, ending balance | $ 264 | $ 0 | $ 264 | $ 0 | |||
Unpaid principal balance | 1,360,920 | 1,276,437 | |||||
Prepayment rate: | |||||||
25 basis points adverse rate change | (539) | (950) | |||||
50 basis points adverse rate change | (1,062) | (1,947) | |||||
Discount rate: | |||||||
25 basis points adverse rate change | (64) | (102) | |||||
50 basis points adverse rate change | $ (128) | $ (202) | |||||
Servicing contracts | Note rate | |||||||
Valuation Allowance [Roll Forward] | |||||||
Weighted average measurement input | 0.0387 | 0.0396 | |||||
Servicing contracts | Discount rate | |||||||
Valuation Allowance [Roll Forward] | |||||||
Weighted average measurement input | 0.093 | 0.093 | |||||
Servicing contracts | Prepayment speed | |||||||
Valuation Allowance [Roll Forward] | |||||||
Weighted average measurement input | 0.169 | 0.114 |
Bank segment - Other borrowings
Bank segment - Other borrowings (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Offsetting Liabilities [Line Items] | ||
FHLB advances | $ 0 | |
Federal funds purchased | $ 0 | 0 |
Gross amount of recognized liabilities | 95,000,000 | 115,000,000 |
Gross amount offset in the Balance Sheets | 0 | 0 |
Securities sold under agreements to repurchase | 95,000,000 | 115,000,000 |
Commercial account holders | ||
Offsetting Liabilities [Line Items] | ||
Securities sold under agreements to repurchase | 95,000,000 | 115,000,000 |
Securities sold under agreements to repurchase collateral, financial instruments | 143,000,000 | 130,000,000 |
Securities sold under agreements to repurchase, cash collateral pledged | 0 | 0 |
American Savings Bank (ASB) | ||
Offsetting Liabilities [Line Items] | ||
FHLB advances | 30,000,000 | |
Securities sold under agreements to repurchase | $ 95,000,000 | $ 115,000,000 |
Bank segment - Derivatives (Det
Bank segment - Derivatives (Details) - Not designated as a hedging instrument - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Derivative instrument | |||||
Asset derivatives | $ 2,341 | $ 2,341 | $ 300 | ||
Liability derivatives | 287 | 287 | 45 | ||
Net gains (losses) recognized in the Statement of Income | 787 | $ 57 | 1,799 | $ 310 | |
Interest rate lock commitments | |||||
Derivative instrument | |||||
Notional amount | 70,190 | 70,190 | 23,171 | ||
Fair value | 2,341 | 2,341 | 297 | ||
Asset derivatives | 2,341 | 2,341 | 297 | ||
Liability derivatives | 0 | 0 | 0 | ||
Interest rate lock commitments | Mortgage banking income | |||||
Derivative instrument | |||||
Net gains (losses) recognized in the Statement of Income | 489 | 11 | 2,044 | 382 | |
Forward commitments | |||||
Derivative instrument | |||||
Notional amount | 57,750 | 57,750 | 29,383 | ||
Fair value | (287) | (287) | (42) | ||
Asset derivatives | 0 | 0 | 3 | ||
Liability derivatives | 287 | 287 | $ 45 | ||
Forward commitments | Mortgage banking income | |||||
Derivative instrument | |||||
Net gains (losses) recognized in the Statement of Income | $ 298 | $ 46 | $ (245) | $ (72) |
Bank segment - Contingencies (D
Bank segment - Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
American Savings Bank (ASB) | ||
Loss Contingencies [Line Items] | ||
Unfunded commitments to fund the company's LIHTC | $ 21.4 | $ 23.4 |
Credit agreements and changes_2
Credit agreements and changes in debt - Narrative (Details) | May 19, 2020USD ($) | Apr. 20, 2020USD ($)Institution | Jun. 30, 2020USD ($)Institution | Dec. 31, 2019USD ($) |
Credit agreement | ||||
Number of financial institutions | Institution | 8 | |||
Debt outstanding | $ 2,070,224,000 | $ 1,964,365,000 | ||
Hawaiian Electric (parent only) | ||||
Credit agreement | ||||
Extinguishment of debt | $ 100,000,000 | |||
Hawaiian Electric (parent only) | 364-Day Revolver | Revolving Credit Facility | ||||
Credit agreement | ||||
Number of financial institutions | Institution | 4 | |||
Credit agreement | $ 75,000,000 | |||
Line of credit outstanding | 0 | |||
Line of credit facility | HEI Facility | ||||
Credit agreement | ||||
Credit agreement | 150,000,000 | |||
Debt outstanding | 0 | 0 | ||
Increase in borrowing capacity | 65,000,000 | |||
Threshold debt proceeds applied as repayment of term loan | $ 50,000,000 | |||
Line of credit facility | Hawaiian Electric (parent only) | Hawaiian Electric Facility | ||||
Credit agreement | ||||
Credit agreement | 200,000,000 | |||
Debt outstanding | $ 0 | $ 0 | ||
Term Loan | ||||
Credit agreement | ||||
Number of financial institutions | Institution | 2 | |||
Credit agreement | $ 65,000,000 | |||
Term Loan | Hawaiian Electric (parent only) | 364-Day Term Loan Credit Agreement | ||||
Credit agreement | ||||
Credit agreement | 50,000,000 | |||
Threshold debt proceeds applied as repayment of term loan | 75,000,000 | |||
Draw down of debt | $ 50,000,000 |
Credit agreements and changes_3
Credit agreements and changes in debt - Note Purchase Agreements (Details) - Senior Notes | May 14, 2020USD ($) |
Unsecured Senior Notes Series 2020A | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 80,000,000 |
Unsecured Senior Notes Series 2020A | Hawaiian Electric (parent only) | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 50,000,000 |
Fixed coupon interest rate | 3.31% |
Unsecured Senior Notes Series 2020A | HELCO | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 10,000,000 |
Fixed coupon interest rate | 3.96% |
Unsecured Senior Notes Series 2020A | Maui Electric | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 20,000,000 |
Fixed coupon interest rate | 3.31% |
Unsecured Senior Notes Series 2020B | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 60,000,000 |
Unsecured Senior Notes Series 2020B | Hawaiian Electric (parent only) | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 40,000,000 |
Fixed coupon interest rate | 3.31% |
Unsecured Senior Notes Series 2020B | Maui Electric | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 20,000,000 |
Fixed coupon interest rate | 3.96% |
Unsecured Senior Notes Series 2020C | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 20,000,000 |
Unsecured Senior Notes Series 2020C | Hawaiian Electric (parent only) | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 20,000,000 |
Fixed coupon interest rate | 3.96% |
Shareholders' equity - Accumula
Shareholders' equity - Accumulated other comprehensive income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||
Beginning Balance | $ 2,280,260 | $ 2,183,515 | $ 2,162,280 | $ 2,280,260 | $ 2,162,280 | |
Current period other comprehensive income (loss) | $ (332) | 18,212 | 13,699 | 9,241 | 17,880 | 22,940 |
Ending Balance | 2,291,398 | 2,208,586 | 2,183,515 | 2,291,398 | 2,208,586 | |
AOCI | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||
Beginning Balance | (20,039) | (41,369) | (50,610) | (20,039) | (50,610) | |
Current period other comprehensive income (loss) | (332) | 18,212 | 13,699 | 9,241 | 17,880 | 22,940 |
Ending Balance | (2,159) | (27,670) | (41,369) | (2,159) | (27,670) | |
Net unrealized gains (losses) on securities | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||
Beginning Balance | 2,481 | (24,423) | 2,481 | (24,423) | ||
Current period other comprehensive income (loss) | 18,783 | 23,593 | ||||
Ending Balance | 21,264 | (830) | 21,264 | (830) | ||
Unrealized gains (losses) on derivatives | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||
Beginning Balance | (1,613) | (436) | (1,613) | (436) | ||
Current period other comprehensive income (loss) | (1,982) | (1,063) | ||||
Ending Balance | (3,595) | (1,499) | (3,595) | (1,499) | ||
Retirement benefit plans | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||
Beginning Balance | (20,907) | (25,751) | (20,907) | (25,751) | ||
Current period other comprehensive income (loss) | 1,079 | 410 | ||||
Ending Balance | (19,828) | (25,341) | (19,828) | (25,341) | ||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||
Beginning Balance | 2,044,499 | 2,047,352 | 1,964,478 | 1,957,641 | 2,047,352 | 1,957,641 |
Current period other comprehensive income (loss) | 25 | 26 | 23 | 24 | 51 | 47 |
Ending Balance | 2,060,069 | 2,044,499 | 1,971,762 | 1,964,478 | 2,060,069 | 1,971,762 |
Hawaiian Electric Company, Inc. and Subsidiaries | AOCI | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||
Beginning Balance | (1,253) | (1,279) | 123 | 99 | (1,279) | 99 |
Current period other comprehensive income (loss) | 25 | 26 | 23 | 24 | ||
Ending Balance | (1,228) | (1,253) | 146 | 123 | (1,228) | 146 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||
Beginning Balance | $ (1,279) | $ 99 | (1,279) | 99 | ||
Current period other comprehensive income (loss) | 51 | 47 | ||||
Ending Balance | $ (1,228) | $ 146 | $ (1,228) | $ 146 |
Shareholders' equity - Reclassi
Shareholders' equity - Reclassification out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Revenues | $ (608,945) | $ (715,485) | $ (1,286,131) | $ (1,377,100) |
Total reclassifications | (1,107) | 205 | (559) | 410 |
Bank | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Revenues | (74,714) | (81,687) | (154,452) | (164,739) |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 25 | 23 | 51 | 47 |
Net realized gains on securities included in net income | Reclassification out of Accumulated Other Comprehensive Income | Bank | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Revenues | (1,638) | 0 | (1,638) | 0 |
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 5,690 | 2,503 | 11,396 | 5,006 |
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 5,184 | 2,321 | 10,368 | 4,643 |
Impact of D&Os of the PUC included in regulatory assets | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | (5,159) | (2,298) | (10,317) | (4,596) |
Impact of D&Os of the PUC included in regulatory assets | Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | $ (5,159) | $ (2,298) | $ (10,317) | $ (4,596) |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 532,921 | $ 660,421 | $ 1,151,526 | $ 1,237,811 |
Total revenues | 608,945 | 715,485 | 1,286,131 | 1,377,100 |
Services/goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 7,211 | 11,632 | 18,767 | 22,865 |
Services/goods transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 525,710 | 648,789 | 1,132,759 | 1,214,946 |
Electric energy sales - residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 187,590 | 195,868 | 377,856 | 371,613 |
Electric energy sales - commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 159,874 | 217,278 | 356,979 | 404,686 |
Electric energy sales - large light and power | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 176,467 | 231,869 | 392,687 | 430,795 |
Electric energy sales - other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,779 | 3,774 | 5,237 | 7,852 |
Bank fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 7,211 | 11,632 | 18,767 | 22,865 |
Revenues from Other Sources | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 76,024 | 55,064 | 134,605 | 139,289 |
Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,826 | (20,360) | (12,478) | (14,153) |
Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 59,829 | 66,155 | 124,804 | 134,643 |
Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 7,674 | 3,900 | 10,881 | 7,231 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 5,695 | 5,369 | 11,398 | 11,568 |
Electric utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 525,710 | 648,789 | 1,132,759 | 1,214,946 |
Total revenues | 534,215 | 633,784 | 1,131,657 | 1,212,279 |
Electric utility | Services/goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Electric utility | Services/goods transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 525,710 | 648,789 | 1,132,759 | 1,214,946 |
Electric utility | Electric energy sales - residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 187,590 | 195,868 | 377,856 | 371,613 |
Electric utility | Electric energy sales - commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 159,874 | 217,278 | 356,979 | 404,686 |
Electric utility | Electric energy sales - large light and power | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 176,467 | 231,869 | 392,687 | 430,795 |
Electric utility | Electric energy sales - other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,779 | 3,774 | 5,237 | 7,852 |
Electric utility | Bank fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Electric utility | Revenues from Other Sources | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 8,505 | (15,005) | (1,102) | (2,667) |
Electric utility | Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,826 | (20,360) | (12,478) | (14,153) |
Electric utility | Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Electric utility | Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Electric utility | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 5,679 | 5,355 | 11,376 | 11,486 |
Bank | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 7,211 | 11,632 | 18,767 | 22,865 |
Total revenues | 74,714 | 81,687 | 154,452 | 164,739 |
Bank | Services/goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 7,211 | 11,632 | 18,767 | 22,865 |
Bank | Services/goods transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Electric energy sales - residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Electric energy sales - commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Electric energy sales - large light and power | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Electric energy sales - other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Bank fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 7,211 | 11,632 | 18,767 | 22,865 |
Bank | Revenues from Other Sources | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 67,503 | 70,055 | 135,685 | 141,874 |
Bank | Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Bank | Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 59,829 | 66,155 | 124,804 | 134,643 |
Bank | Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 7,674 | 3,900 | 10,881 | 7,231 |
Bank | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Total revenues | 16 | 14 | 22 | 82 |
Other | Services/goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Services/goods transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Electric energy sales - residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Electric energy sales - commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Electric energy sales - large light and power | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Electric energy sales - other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Bank fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Revenues from Other Sources | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 16 | 14 | 22 | 82 |
Other | Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Other | Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Other | Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 16 | $ 14 | $ 22 | $ 82 |
Retirement benefits (Details)
Retirement benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Defined Benefit Plan | |||||
Expected payments for remainder of fiscal year | $ 3,000 | $ 3,000 | $ 2,000 | ||
Retirement benefits expense | $ 31,000 | $ 29,000 | |||
Number of years for which regulatory asset/liability for each utility will be amortized, beginning with respective utility's next rate case (in years) | 5 years | ||||
Defined contribution plan, expenses recognized | $ 3,700 | 3,600 | |||
Cash contributions by the employer to defined contribution plan | 4,600 | 4,900 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Defined Benefit Plan | |||||
Expected payments for remainder of fiscal year | 1,000 | 1,000 | 1,000 | ||
Retirement benefits expense | 29,000 | 29,000 | |||
Defined contribution plan, expenses recognized | 1,400 | 1,300 | |||
Cash contributions by the employer to defined contribution plan | 1,400 | 1,300 | |||
Pension benefits | |||||
Defined Benefit Plan | |||||
Contributions made to defined benefit plans | 17,000 | 24,000 | |||
Contributions expected to be paid in current year | 71,000 | 71,000 | 49,000 | ||
Service cost | 18,362 | $ 15,382 | 36,725 | 30,764 | |
Interest cost | 20,164 | 21,033 | 40,327 | 42,066 | |
Expected return on plan assets | (28,465) | (27,999) | (56,931) | (55,997) | |
Amortization of net prior period (gain)/cost | 2 | (11) | 5 | (22) | |
Amortization of net actuarial (gains)/losses | 8,058 | 3,839 | 16,115 | 7,678 | |
Net periodic pension/benefit cost (return) | 18,121 | 12,244 | 36,241 | 24,489 | |
Impact of PUC D&Os | 6,261 | 12,278 | 12,523 | 24,557 | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 24,382 | 24,522 | 48,764 | 49,046 | |
Pension benefits | American Savings Bank (ASB) | |||||
Defined Benefit Plan | |||||
Contributions expected to be paid in current year | 0 | 0 | 0 | ||
Pension benefits | Hawaiian Electric Industries, Inc. | |||||
Defined Benefit Plan | |||||
Contributions expected to be paid in current year | 1,000 | 1,000 | 1,000 | ||
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Defined Benefit Plan | |||||
Contributions made to defined benefit plans | 17,000 | 23,000 | |||
Contributions expected to be paid in current year | 70,000 | 70,000 | $ 48,000 | ||
Service cost | 17,891 | 15,001 | 35,782 | 30,002 | |
Interest cost | 18,715 | 19,414 | 37,430 | 38,828 | |
Expected return on plan assets | (26,857) | (26,164) | (53,712) | (52,328) | |
Amortization of net prior period (gain)/cost | 3 | 2 | 5 | 4 | |
Amortization of net actuarial (gains)/losses | 7,369 | 3,576 | 14,737 | 7,152 | |
Net periodic pension/benefit cost (return) | 17,121 | 11,829 | 34,242 | 23,658 | |
Impact of PUC D&Os | 6,261 | 12,278 | 12,523 | 24,557 | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 23,382 | 24,107 | 46,765 | 48,215 | |
Other benefits | |||||
Defined Benefit Plan | |||||
Service cost | 631 | 542 | 1,262 | 1,083 | |
Interest cost | 1,856 | 1,997 | 3,711 | 3,994 | |
Expected return on plan assets | (3,039) | (3,086) | (6,077) | (6,172) | |
Amortization of net prior period (gain)/cost | (441) | (452) | (881) | (904) | |
Amortization of net actuarial (gains)/losses | 51 | (4) | 101 | (7) | |
Net periodic pension/benefit cost (return) | (942) | (1,003) | (1,884) | (2,006) | |
Impact of PUC D&Os | 777 | 811 | 1,554 | 1,622 | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | (165) | (192) | (330) | (384) | |
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Defined Benefit Plan | |||||
Service cost | 625 | 538 | 1,251 | 1,075 | |
Interest cost | 1,781 | 1,918 | 3,563 | 3,835 | |
Expected return on plan assets | (2,990) | (3,036) | (5,980) | (6,071) | |
Amortization of net prior period (gain)/cost | (439) | (451) | (879) | (902) | |
Amortization of net actuarial (gains)/losses | 51 | 0 | 102 | 0 | |
Net periodic pension/benefit cost (return) | (972) | (1,031) | (1,943) | (2,063) | |
Impact of PUC D&Os | 777 | 811 | 1,554 | 1,622 | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | $ (195) | $ (220) | $ (389) | $ (441) |
Share-based compensation - Narr
Share-based compensation - Narrative (Details) - USD ($) $ in Millions | Mar. 01, 2014 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Share-based compensation | ||||||
Income tax benefit from compensation expense | $ 0.4 | $ 0.7 | $ 0.7 | $ 0.9 | ||
Restricted stock units | ||||||
Share-based compensation | ||||||
Fair value of vested stock | 4.2 | 3.2 | ||||
Income tax benefit from compensation expense | 0.7 | $ 0.5 | ||||
Unrecognized share based compensation | 6.9 | $ 6.9 | ||||
Weighted average period for recognition of unrecognized compensation cost (in years) | 2 years 10 months 24 days | |||||
Long-term Incentive Plan | ||||||
Share-based compensation | ||||||
Payment award, low end of range | 0.00% | |||||
Payment award, high end of range | 200.00% | |||||
Measurement period for total return to shareholders (in years) | 3 years | |||||
Award performance period (in years) | 3 years | |||||
LTIP linked to TRS | ||||||
Share-based compensation | ||||||
Fair value of vested stock | $ 2.6 | |||||
Income tax benefit from compensation expense | 0.4 | |||||
Unrecognized share based compensation | 1.9 | $ 1.9 | ||||
Weighted average period for recognition of unrecognized compensation cost (in years) | 1 year 4 months 24 days | |||||
LTIP awards linked to other performance conditions | ||||||
Share-based compensation | ||||||
Fair value of vested stock | $ 7.6 | |||||
Income tax benefit from compensation expense | 1.2 | |||||
Unrecognized share based compensation | $ 6.8 | $ 6.8 | ||||
Weighted average period for recognition of unrecognized compensation cost (in years) | 1 year 7 months 6 days | |||||
Equity and Incentive Plan | ||||||
Share-based compensation | ||||||
Number of additional shares authorized (in shares) | 1,500,000 | |||||
Shares available for future issuance (in shares) | 3,000,000 | 3,000,000 | ||||
Number of share issuable upon vesting and achievement of performance goals (in shares) | 700,000 | 700,000 | ||||
Nonemployee Director Stock Plan | ||||||
Share-based compensation | ||||||
Number of additional shares authorized (in shares) | 300,000 | |||||
Shares available for future grant (in shares) | 274,163 | 274,163 |
Share-based compensation - Summ
Share-based compensation - Summary of income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based compensation | ||||
Share-based compensation expense | $ 2.4 | $ 3.7 | $ 4.1 | $ 5.9 |
Income tax benefit | 0.4 | 0.7 | 0.7 | 0.9 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Share-based compensation | ||||
Share-based compensation expense | 0.4 | 1.1 | 1.2 | 1.8 |
Income tax benefit | $ 0.1 | $ 0.2 | $ 0.2 | $ 0.3 |
Share-based compensation - 2011
Share-based compensation - 2011 Director Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based compensation | ||||
Income tax benefit | $ 0.4 | $ 0.7 | $ 0.7 | $ 0.9 |
Common stock | ||||
Share-based compensation | ||||
Shares granted (in shares) | 35,632 | 35,580 | 36,100 | 35,580 |
Fair value | $ 1.3 | $ 1.5 | $ 1.3 | $ 1.5 |
Income tax benefit | $ 0.3 | $ 0.4 | $ 0.3 | $ 0.4 |
Share-based compensation - Su_2
Share-based compensation - Summary of changes in share based compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restricted stock units | ||||
Restricted stock awards and restricted stock units | ||||
Outstanding, beginning of period (in shares) | 203,441 | 211,225 | 207,641 | 200,358 |
Granted (in shares) | 916 | 0 | 78,595 | 94,559 |
Vested (in shares) | 0 | 0 | (77,719) | (76,712) |
Forfeited (in shares) | 0 | (2,600) | (4,160) | (9,580) |
Outstanding, end of period (in shares) | 204,357 | 208,625 | 204,357 | 208,625 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 40.67 | $ 35.28 | $ 35.36 | $ 33.05 |
Granted (in dollars per share) | 37.90 | 0 | 47.99 | 37.68 |
Vested (in dollars per share) | 0 | 0 | 34.19 | 32.61 |
Forfeited (in dollars per share) | 0 | 35.56 | 35.81 | 33.82 |
Outstanding, end of period (in dollars per share) | $ 40.65 | $ 35.28 | $ 40.65 | $ 35.28 |
Total weighted-average grant-date fair value | $ 0 | $ 0 | $ 3.8 | $ 3.6 |
LTIP linked to TRS | ||||
Restricted stock awards and restricted stock units | ||||
Outstanding, beginning of period (in shares) | 90,616 | 98,311 | 96,402 | 65,578 |
Granted (in shares) | 0 | 0 | 24,630 | 34,647 |
Vested (in shares) | 0 | 0 | (29,409) | 0 |
Forfeited (in shares) | 0 | 0 | (1,007) | (1,914) |
Outstanding, end of period (in shares) | 90,616 | 98,311 | 90,616 | 98,311 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 42.08 | $ 39.61 | $ 39.62 | $ 38.81 |
Granted (in dollars per share) | 0 | 0 | 48.62 | 41.07 |
Vested (in dollars per share) | 0 | 0 | 39.51 | 0 |
Forfeited (in dollars per share) | 0 | 0 | 41.72 | 38.62 |
Outstanding, end of period (in dollars per share) | $ 42.08 | $ 39.61 | $ 42.08 | $ 39.61 |
Total weighted-average grant-date fair value | $ 0 | $ 0 | $ 1.2 | $ 1.4 |
LTIP awards linked to other performance conditions | ||||
Restricted stock awards and restricted stock units | ||||
Outstanding, beginning of period (in shares) | 336,344 | 407,090 | 403,768 | 276,169 |
Granted (in shares) | 0 | 0 | 98,522 | 138,580 |
Vested (in shares) | 0 | 0 | (135,804) | 0 |
Increase above target (in shares) | (38,821) | 0 | (64,932) | 0 |
Forfeited (in shares) | 0 | 0 | (4,031) | (7,659) |
Outstanding, end of period (in shares) | 297,523 | 407,090 | 297,523 | 407,090 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 39.64 | $ 35.12 | $ 35.15 | $ 33.80 |
Granted (in dollars per share) | 0 | 0 | 48.10 | 37.68 |
Vested (in dollars per share) | 0 | 0 | 33.48 | 0 |
Increase above target (in dollars per share) | 34.12 | 0 | 34.12 | 0 |
Forfeited (in dollars per share) | 0 | 0 | 39.67 | 33.91 |
Outstanding, end of period (in dollars per share) | $ 40.37 | $ 35.12 | $ 40.37 | $ 35.12 |
Total weighted-average grant-date fair value | $ 0 | $ 0 | $ 4.7 | $ 5.2 |
Share-based compensation - Fair
Share-based compensation - Fair value assumptions (Details) - LTIP linked to TRS - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Risk-free interest rate | 2.48% | |
Expected life (in years) | 3 years | |
Expected volatility | 15.80% | |
Range of expected volatility for Peer Group, minimum rate | 15.00% | |
Range of expected volatility for Peer Group, maximum rate | 73.20% | |
Grant date fair value (in dollars per share) | $ 41.07 | |
Forecast | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Risk-free interest rate | 1.39% | |
Expected life (in years) | 3 years | |
Expected volatility | 13.10% | |
Range of expected volatility for Peer Group, minimum rate | 13.60% | |
Range of expected volatility for Peer Group, maximum rate | 95.40% | |
Grant date fair value (in dollars per share) | $ 48.62 |
Income taxes (Details)
Income taxes (Details) | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2018 | |
Income Tax Contingency [Line Items] | |||
Effective income tax, percent | 17.00% | 19.00% | |
Federal income tax rate | 21.00% | 35.00% | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Income Tax Contingency [Line Items] | |||
Effective income tax, percent | 19.00% | 21.00% |
Cash flows (Details)
Cash flows (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Supplemental disclosures of cash flow information | ||
Interest paid to non-affiliates, net of amounts capitalized | $ 50 | $ 53 |
Income taxes paid (including refundable credits) | 0 | 46 |
Income taxes refunded (including refundable credits) | 0 | 4 |
Supplemental disclosures of noncash activities | ||
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 34 | 30 |
Reduction of long-term debt from funds previously transferred for repayment (financing) | 82 | 0 |
Right-of-use assets obtained in exchange for operating lease obligations (investing) | 20 | 2 |
Common stock issued (gross) for director and executive/management compensation (financing) | 16 | 5 |
Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) | 0 | 9 |
Obligations to fund low income housing investments (investing) | 0 | 6 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Supplemental disclosures of cash flow information | ||
Interest paid to non-affiliates, net of amounts capitalized | 32 | 34 |
Income taxes paid (including refundable credits) | 0 | 46 |
Income taxes refunded (including refundable credits) | 0 | 4 |
Supplemental disclosures of noncash activities | ||
Estimated fair value of noncash contributions in aid of construction (investing) | 3 | 1 |
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 30 | 27 |
Reduction of long-term debt from funds previously transferred for repayment (financing) | 82 | 0 |
Right-of-use assets obtained in exchange for operating lease obligations (investing) | $ 16 | $ 1 |
Fair value measurements - Summa
Fair value measurements - Summary of financial assets and liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets | ||
Available-for-sale investment securities | $ 1,389,633 | $ 1,232,826 |
Held-to-maturity investment securities | 131,131 | 143,467 |
Financial liabilities | ||
Short-term borrowings—other than bank | 131,180 | 185,710 |
Other bank borrowings | 124,975 | 115,110 |
Carrying or notional amount | ||
Financial assets | ||
Available-for-sale investment securities | 1,389,633 | 1,232,826 |
Held-to-maturity investment securities | 124,623 | 139,451 |
Stock in Federal Home Loan Bank | 9,880 | 8,434 |
Loans, net | 5,393,653 | 5,080,107 |
Mortgage-servicing rights | 9,647 | 9,101 |
Derivative assets | 70,190 | 25,179 |
Financial liabilities | ||
Deposit liabilities | 657,627 | 769,825 |
Short-term borrowings—other than bank | 131,180 | 185,710 |
Other bank borrowings | 124,975 | 115,110 |
Long-term debt, net | 2,070,224 | 1,964,365 |
Derivative liabilities | 81,861 | 51,375 |
Carrying or notional amount | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 1,574,955 | 1,497,667 |
Short-term borrowings | 49,919 | 88,987 |
Estimated fair value | ||
Financial assets | ||
Available-for-sale investment securities | 1,389,633 | 1,232,826 |
Held-to-maturity investment securities | 131,131 | 143,467 |
Stock in Federal Home Loan Bank | 9,880 | 8,434 |
Loans, net | 5,577,395 | 5,157,537 |
Mortgage-servicing rights | 10,328 | 12,379 |
Derivative assets | 2,341 | 300 |
Financial liabilities | ||
Deposit liabilities | 663,296 | 765,976 |
Short-term borrowings—other than bank | 131,180 | 185,710 |
Other bank borrowings | 124,966 | 115,107 |
Long-term debt, net | 2,427,374 | 2,156,927 |
Derivative liabilities | 5,130 | 2,218 |
Estimated fair value | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 1,895,365 | 1,670,189 |
Short-term borrowings | 49,919 | 88,987 |
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 | 0 | 0 |
Derivative liabilities | 287 | 33 |
Estimated fair value | Level 1 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 0 | 0 |
Short-term borrowings | 0 | 0 |
Estimated fair value | Level 2 | ||
Financial assets | ||
Available-for-sale investment securities | 1,360,806 | 1,204,229 |
Held-to-maturity investment securities | 131,131 | 143,467 |
Stock in Federal Home Loan Bank | 9,880 | 8,434 |
Loans, net | 37,345 | 12,295 |
Mortgage-servicing rights | 0 | 0 |
Derivative assets | 2,341 | 300 |
Financial liabilities | ||
Deposit liabilities | 663,296 | 765,976 |
Short-term borrowings—other than bank | 131,180 | 185,710 |
Other bank borrowings | 124,966 | 115,107 |
Long-term debt, net | 2,427,374 | 2,156,927 |
Derivative liabilities | 4,843 | 2,185 |
Estimated fair value | Level 2 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 1,895,365 | 1,670,189 |
Short-term borrowings | 49,919 | 88,987 |
Estimated fair value | Level 3 | ||
Financial assets | ||
Available-for-sale investment securities | 28,827 | 28,597 |
Held-to-maturity investment securities | 0 | 0 |
Stock in Federal Home Loan Bank | 0 | 0 |
Loans, net | 5,540,050 | 5,145,242 |
Mortgage-servicing rights | 10,328 | 12,379 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Deposit liabilities | 0 | 0 |
Short-term borrowings—other than bank | 0 | 0 |
Other bank borrowings | 0 | 0 |
Long-term debt, net | 0 | 0 |
Derivative liabilities | 0 | 0 |
Estimated fair value | Level 3 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 0 | 0 |
Short-term borrowings | $ 0 | $ 0 |
Fair value measurements - Asset
Fair value measurements - Assets and liabilities measured on a recurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative assets | ||
Available-for-sale investment securities | $ 1,389,633 | $ 1,232,826 |
Corporate bonds | ||
Derivative assets | ||
Available-for-sale investment securities | 31,407 | 60,057 |
Mortgage revenue bonds | ||
Derivative assets | ||
Available-for-sale investment securities | 28,827 | 28,597 |
Fair value measurements on a recurring basis | Level 1 | ||
Derivative liabilities | ||
Derivative liabilities | 287 | 33 |
Fair value measurements on a recurring basis | Level 1 | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | Interest rate lock commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | Forward commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 287 | 33 |
Fair value measurements on a recurring basis | Level 1 | Other | Interest rate swap | ||
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | U.S. Treasury and federal agency obligations | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Corporate bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Mortgage revenue bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 2 | ||
Derivative liabilities | ||
Derivative liabilities | 4,843 | 2,185 |
Fair value measurements on a recurring basis | Level 2 | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 1,360,806 | 1,204,229 |
Derivative assets | 2,341 | 300 |
Fair value measurements on a recurring basis | Level 2 | Bank | Interest rate lock commitments | ||
Derivative assets | ||
Derivative assets | 2,341 | 297 |
Fair value measurements on a recurring basis | Level 2 | Bank | Forward commitments | ||
Derivative assets | ||
Derivative assets | 0 | 3 |
Derivative liabilities | ||
Derivative liabilities | 0 | 12 |
Fair value measurements on a recurring basis | Level 2 | Other | Interest rate swap | ||
Derivative liabilities | ||
Derivative liabilities | 4,843 | 2,173 |
Fair value measurements on a recurring basis | Level 2 | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 1,226,985 | 1,026,385 |
Fair value measurements on a recurring basis | Level 2 | U.S. Treasury and federal agency obligations | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 102,414 | 117,787 |
Fair value measurements on a recurring basis | Level 2 | Corporate bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 31,407 | 60,057 |
Fair value measurements on a recurring basis | Level 2 | Mortgage revenue bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | ||
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 28,827 | 28,597 |
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | Interest rate lock commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | Forward commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Other | Interest rate swap | ||
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | U.S. Treasury and federal agency obligations | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Corporate bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Mortgage revenue bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | $ 28,827 | $ 28,597 |
Fair value measurements - Addit
Fair value measurements - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)instrument | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)instrument | Jun. 30, 2019USD ($) | |
Measurement Input, Credit Spread | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Weighted average discount rate | 0.0215 | 0.0215 | ||
Mortgage revenue bonds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 28,726 | $ 27,970 | $ 28,597 | $ 23,636 |
Principal payments received | 0 | 0 | 0 | 0 |
Purchases | 101 | 196 | 230 | 4,530 |
Unrealized gain (loss) included in other comprehensive income | 0 | 0 | 0 | 0 |
Ending balance | $ 28,827 | $ 28,166 | $ 28,827 | $ 28,166 |
Mortgage revenue bonds | Bank | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Number of financial instruments held | instrument | 2 | 2 |
Fair value measurements - Ass_2
Fair value measurements - Assets Measured on a Nonrecurring Basis (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Level 3 | |||
Fair value measurements on a recurring basis | |||
Mortgage servicing rights | $ 5,419,000 | ||
Estimated fair value | |||
Fair value measurements on a recurring basis | |||
Loans, net | 5,577,395,000 | $ 5,157,537,000 | |
Estimated fair value | Level 1 | |||
Fair value measurements on a recurring basis | |||
Loans, net | 0 | 0 | |
Estimated fair value | Level 2 | |||
Fair value measurements on a recurring basis | |||
Loans, net | 37,345,000 | 12,295,000 | |
Estimated fair value | Level 3 | |||
Fair value measurements on a recurring basis | |||
Loans, net | 5,540,050,000 | 5,145,242,000 | |
Fair value measurements on a nonrecurring basis | American Savings Bank (ASB) | |||
Fair value measurements on a recurring basis | |||
Adjustments to fair value of loans held for sale | 0 | $ 0 | |
Fair value measurements on a nonrecurring basis | Level 1 | |||
Fair value measurements on a recurring basis | |||
Mortgage servicing rights | 0 | ||
Loans, net | 0 | ||
Fair value measurements on a nonrecurring basis | Level 2 | |||
Fair value measurements on a recurring basis | |||
Mortgage servicing rights | 0 | ||
Loans, net | 0 | ||
Fair value measurements on a nonrecurring basis | Level 3 | |||
Fair value measurements on a recurring basis | |||
Mortgage servicing rights | 5,419,000 | ||
Loans, net | 25,000 | ||
Fair value measurements on a nonrecurring basis | Estimated fair value | |||
Fair value measurements on a recurring basis | |||
Mortgage servicing rights | $ 5,419,000 | ||
Loans, net | $ 25,000 |
Fair value measurements - Sum_2
Fair value measurements - Summary of Level 3 financial instruments (Details) - Level 3 - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair value measurements | ||
Mortgage servicing rights | $ 5,419 | |
Fair value | $ 25 | |
Discount rate | 9.30% | |
Minimum | ||
Fair value measurements | ||
Prepayment speed percentage | 13.90% | |
Maximum | ||
Fair value measurements | ||
Prepayment speed percentage | 18.40% | |
Weighted Average | ||
Fair value measurements | ||
Prepayment speed percentage | 16.60% | |
Residential land | ||
Fair value measurements | ||
Fair value | $ 25 | |
Residential loan | Fair Value of Property or Collateral | ||
Fair value measurements | ||
Appraised value, selling cost | 7.00% |