Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 23, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity Registrant Name | HAWAIIAN ELECTRIC INDUSTRIES, INC. | |
Entity File Number | 1-8503 | |
Entity Tax Identification Number | 99-0208097 | |
Entity Incorporation, State or Country Code | HI | |
Entity Address, Address Line One | 1001 Bishop Street, Suite 2900 | |
Entity Address, City or Town | Honolulu | |
Entity Address, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 | |
City Area Code | 808 | |
Local Phone Number | 543-5662 | |
Title of each class | Common Stock, Without Par Value | |
Trading Symbol(s) | HE | |
Name of each exchange on which registered | 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 | 109,311,289 | |
Entity Central Index Key | 0000354707 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Entity Registrant Name | HAWAIIAN ELECTRIC COMPANY, INC. | |
Entity File Number | 1-4955 | |
Entity Tax Identification Number | 99-0040500 | |
Entity Incorporation, State or Country Code | HI | |
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 | 17,324,376 | |
Entity Central Index Key | 0000046207 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | ||||
Total revenues | $ 756,904 | $ 641,427 | $ 2,080,107 | $ 1,927,558 |
Expenses | ||||
Total expenses | 659,588 | 541,866 | 1,782,904 | 1,696,739 |
Operating income (loss) | ||||
Total operating income | 97,316 | 99,561 | 297,203 | 230,819 |
Retirement defined benefits credit (expense)—other than service costs | 1,058 | (1,102) | 4,709 | (2,970) |
Interest expense, net—other than on deposit liabilities and other bank borrowings | (23,477) | (22,086) | (70,530) | (66,474) |
Allowance for borrowed funds used during construction | 827 | 801 | 2,386 | 2,241 |
Allowance for equity funds used during construction | 2,427 | 2,347 | 6,995 | 6,556 |
Gain on sale of investment securities, net | 0 | 0 | 528 | 9,275 |
Income before income taxes | 78,151 | 79,521 | 241,291 | 179,447 |
Income taxes | 14,265 | 14,018 | 48,229 | 30,691 |
Net income | 63,886 | 65,503 | 193,062 | 148,756 |
Preferred stock dividends of subsidiaries | 471 | 471 | 1,417 | 1,417 |
Net income for common stock | $ 63,415 | $ 65,032 | $ 191,645 | $ 147,339 |
Basic earnings per common share (in dollars per share) | $ 0.58 | $ 0.60 | $ 1.75 | $ 1.35 |
Diluted earnings per common share (in dollars per share) | $ 0.58 | $ 0.59 | $ 1.75 | $ 1.35 |
Weighted-average number of common shares outstanding (in shares) | 109,311 | 109,181 | 109,272 | 109,126 |
Net effect of potentially dilutive shares (in shares) | 264 | 155 | 316 | 261 |
Weighted-average shares assuming dilution (in shares) | 109,575 | 109,336 | 109,588 | 109,387 |
Electric utility | ||||
Revenues | ||||
Total revenues | $ 679,499 | $ 562,568 | $ 1,846,242 | $ 1,694,225 |
Expenses | ||||
Total expenses | 604,307 | 474,050 | 1,634,252 | 1,493,948 |
Operating income (loss) | ||||
Total operating income | 75,192 | 88,518 | 211,990 | 200,277 |
Income before income taxes | 61,175 | 74,398 | 170,163 | 157,111 |
Income taxes | 10,335 | 13,835 | 33,066 | 29,316 |
Net income | 50,840 | 60,563 | 137,097 | 127,795 |
Preferred stock dividends of subsidiaries | 498 | 498 | 1,496 | 1,496 |
Net income for common stock | 50,342 | 60,065 | 135,601 | 126,299 |
Bank | ||||
Revenues | ||||
Total revenues | 76,208 | 78,644 | 230,599 | 233,096 |
Expenses | ||||
Total expenses | 51,151 | 63,144 | 130,440 | 189,700 |
Operating income (loss) | ||||
Total operating income | 25,057 | 15,500 | 100,159 | 43,396 |
Income before income taxes | 25,241 | 15,027 | 102,335 | 51,330 |
Income taxes | 5,976 | 2,877 | 23,230 | 9,405 |
Net income | 19,265 | 12,150 | 79,105 | 41,925 |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 |
Net income for common stock | 19,265 | 12,150 | 79,105 | 41,925 |
Other | ||||
Revenues | ||||
Total revenues | 1,197 | 215 | 3,266 | 237 |
Expenses | ||||
Total expenses | 4,130 | 4,672 | 18,212 | 13,091 |
Operating income (loss) | ||||
Total operating income | (2,933) | (4,457) | (14,946) | (12,854) |
Income before income taxes | (8,265) | (9,904) | (31,207) | (28,994) |
Income taxes | (2,046) | (2,694) | (8,067) | (8,030) |
Net income | (6,219) | (7,210) | (23,140) | (20,964) |
Preferred stock dividends of subsidiaries | (27) | (27) | (79) | (79) |
Net income for common stock | (6,192) | (7,183) | (23,061) | (20,885) |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Revenues | ||||
Total revenues | 679,499 | 562,568 | 1,846,242 | 1,694,225 |
Expenses | ||||
Fuel oil | 180,682 | 105,042 | 447,245 | 390,714 |
Purchased power | 185,759 | 149,025 | 490,520 | 425,679 |
Other operation and maintenance | 116,468 | 111,243 | 349,180 | 348,831 |
Depreciation | 57,386 | 55,689 | 172,122 | 167,235 |
Taxes, other than income taxes | 64,012 | 53,051 | 175,185 | 161,489 |
Total expenses | 604,307 | 474,050 | 1,634,252 | 1,493,948 |
Operating income (loss) | ||||
Total operating income | 75,192 | 88,518 | 211,990 | 200,277 |
Retirement defined benefits credit (expense)—other than service costs | 877 | (432) | 2,918 | (1,195) |
Interest expense and other charges, net | (18,148) | (16,836) | (54,126) | (50,768) |
Allowance for borrowed funds used during construction | 827 | 801 | 2,386 | 2,241 |
Allowance for equity funds used during construction | 2,427 | 2,347 | 6,995 | 6,556 |
Income before income taxes | 61,175 | 74,398 | 170,163 | 157,111 |
Income taxes | 10,335 | 13,835 | 33,066 | 29,316 |
Net income | 50,840 | 60,563 | 137,097 | 127,795 |
Preferred stock dividends of subsidiaries | 228 | 228 | 686 | 686 |
Net income attributable to Hawaiian Electric | 50,612 | 60,335 | 136,411 | 127,109 |
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 810 | 810 |
Net income for common stock | $ 50,342 | $ 60,065 | $ 135,601 | $ 126,299 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net income for common stock | $ 63,415 | $ 65,032 | $ 191,645 | $ 147,339 |
Net unrealized gains (losses) on available-for-sale investment securities: | ||||
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, net of taxes of $(4,212), $360, $(14,614) and $7,836, respectively | (11,507) | 984 | (39,921) | 21,405 |
Reclassification adjustment for net realized gains included in net income, net of taxes of nil, nil, $(142) and $(599), respectively | 0 | 0 | (387) | (1,638) |
Derivatives qualifying as cash flow hedges: | ||||
Unrealized interest rate hedging gains (losses) arising during the period, net of taxes of $48, $(51), $347 and $(739), respectively | 139 | (147) | 1,000 | (2,129) |
Reclassification adjustment for net realized losses included in net income, net of taxes of $3, nil, $3 and nil, respectively | 9 | 0 | 9 | 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 | 2,853 | 6,324 | 14,871 | 17,720 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (2,799) | (5,721) | (14,421) | (16,038) |
Other comprehensive income (loss), net of taxes | (11,305) | 1,440 | (38,849) | 19,320 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 52,110 | 66,472 | 152,796 | 166,659 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Net income for common stock | 50,342 | 60,065 | 135,601 | 126,299 |
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 | 2,905 | 5,769 | 14,596 | 16,137 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (2,799) | (5,721) | (14,421) | (16,038) |
Other comprehensive income (loss), net of taxes | 106 | 48 | 175 | 99 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ 50,448 | $ 60,113 | $ 135,776 | $ 126,398 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net unrealized gains (losses) on available-for-sale investment securities: | ||||
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, tax | $ (4,212) | $ 360 | $ (14,614) | $ 7,836 |
Reclassification adjustment for net realized gains included in net income, tax | 0 | 0 | (142) | (599) |
Derivatives qualifying as cash flow hedges: | ||||
Unrealized interest rate hedging arising during the period, tax | 48 | (51) | 347 | (739) |
Reclassification adjustment for net unrealized losses included in net income, tax | 3 | 0 | 3 | 0 |
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax | 985 | 2,202 | 5,155 | 6,169 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, tax | (971) | (1,985) | (5,002) | (5,563) |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax | 1,007 | 2,001 | 5,062 | 5,597 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, tax | $ (971) | $ (1,985) | $ (5,002) | $ (5,563) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 227,923 | $ 341,421 |
Restricted cash | 9,412 | 17,558 |
Accounts receivable and unbilled revenues, net | 331,752 | 281,216 |
Available-for-sale investment securities, at fair value | 2,580,830 | 1,970,417 |
Held-to-maturity investment securities, at amortized cost | 491,871 | 226,947 |
Stock in Federal Home Loan Bank, at cost | 10,000 | 8,680 |
Loans held for investment, net | 5,046,180 | 5,232,642 |
Loans held for sale, at lower of cost or fair value | 53,998 | 28,275 |
Property, plant and equipment, net of accumulated depreciation | 5,335,130 | 5,265,735 |
Regulatory assets | 757,204 | 766,708 |
Other | 691,857 | 629,149 |
Goodwill | 82,190 | 82,190 |
Utility property, plant and equipment | ||
Total property, plant and equipment, net | 5,335,130 | 5,265,735 |
Current assets | ||
Cash and cash equivalents | 227,923 | 341,421 |
Other long-term assets | ||
Operating lease right-of-use assets | 141,816 | 153,069 |
Total assets | 15,760,163 | 15,004,007 |
Liabilities | ||
Accounts payable | 195,223 | 182,347 |
Interest and dividends payable | 33,307 | 23,547 |
Deposit liabilities | 7,976,538 | 7,386,957 |
Short-term borrowings—other than bank | 92,246 | 129,379 |
Other bank borrowings | 129,305 | 89,670 |
Long-term debt, net—other than bank | 2,244,795 | 2,119,129 |
Deferred income taxes | 378,139 | 395,089 |
Operating lease liabilities | 155,608 | 160,432 |
Regulatory liabilities | 975,512 | 959,786 |
Defined benefit pension and other postretirement benefit plans liability | 543,285 | 567,438 |
Other | 618,369 | 618,438 |
Total liabilities | 13,342,327 | 12,632,212 |
Capitalization | ||
Retained earnings | 740,566 | 660,398 |
Accumulated other comprehensive loss, net of tax benefits | (40,113) | (1,264) |
Total shareholders’ equity | 2,383,543 | 2,337,502 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies (Notes 3 and 4) | ||
Current liabilities | ||
Interest and dividends payable | 33,307 | 23,547 |
Deferred credits and other liabilities | ||
Deferred income taxes | 378,139 | 395,089 |
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: 109,311,289 shares and 109,181,124 shares at September 30, 2021 and December 31, 2020, respectively | 1,683,090 | 1,678,368 |
Retained earnings | 740,566 | 660,398 |
Accumulated other comprehensive loss, net of tax benefits | (40,113) | (1,264) |
Total shareholders’ equity | 2,383,543 | 2,337,502 |
Total liabilities and shareholders’ equity | 15,760,163 | 15,004,007 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Assets | ||
Cash and cash equivalents | 36,467 | 47,360 |
Restricted cash | 6,313 | 15,966 |
Property, plant and equipment, net of accumulated depreciation | 5,002,083 | 4,937,170 |
Regulatory assets | 28,700 | |
Utility property, plant and equipment | ||
Land | 51,610 | 51,611 |
Plant and equipment | 7,669,720 | 7,509,343 |
Less accumulated depreciation | (2,947,715) | (2,819,079) |
Construction in progress | 221,518 | 188,342 |
Utility property, plant and equipment, net | 4,995,133 | 4,930,217 |
Nonutility property, plant and equipment, less accumulated depreciation | 6,950 | 6,953 |
Total property, plant and equipment, net | 5,002,083 | 4,937,170 |
Current assets | ||
Cash and cash equivalents | 36,467 | 47,360 |
Customer accounts receivable, net | 174,237 | 147,832 |
Accrued unbilled revenues, net | 129,079 | 101,036 |
Other accounts receivable, net | 6,116 | 7,673 |
Fuel oil stock, at average cost | 100,801 | 58,238 |
Materials and supplies, at average cost | 72,997 | 67,344 |
Prepayments and other | 53,961 | 44,083 |
Regulatory assets | 56,224 | 30,435 |
Total current assets | 636,195 | 519,967 |
Other long-term assets | ||
Operating lease right-of-use assets | 119,624 | 127,654 |
Regulatory assets | 700,980 | 736,273 |
Other | 144,026 | 136,309 |
Total other long-term assets | 964,630 | 1,000,236 |
Total assets | 6,602,908 | 6,457,373 |
Liabilities | ||
Interest and dividends payable | 28,610 | 20,350 |
Deferred income taxes | 396,553 | 397,798 |
Capitalization | ||
Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 17,324,376 shares at September 30, 2021 and December 31, 2020) | 115,515 | 115,515 |
Premium on capital stock | 746,987 | 746,987 |
Retained earnings | 1,334,161 | 1,282,335 |
Accumulated other comprehensive loss, net of tax benefits | (2,744) | (2,919) |
Total shareholders’ equity | 2,193,919 | 2,141,918 |
Long-term debt, net | 1,676,223 | 1,561,302 |
Total capitalization | 3,904,435 | 3,737,513 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies (Notes 3 and 4) | ||
Current liabilities | ||
Current portion of operating lease liabilities | 64,894 | 64,730 |
Short-term borrowings from non-affiliates | 0 | 49,979 |
Accounts payable | 146,875 | 133,849 |
Interest and dividends payable | 28,610 | 20,350 |
Taxes accrued, including revenue taxes | 196,368 | 192,524 |
Regulatory liabilities | 32,261 | 37,301 |
Other | 84,506 | 74,262 |
Total current liabilities | 553,514 | 572,995 |
Deferred credits and other liabilities | ||
Operating lease liabilities | 67,802 | 69,494 |
Deferred income taxes | 396,553 | 397,798 |
Regulatory liabilities | 943,251 | 922,485 |
Unamortized tax credits | 106,378 | 111,915 |
Defined benefit pension and other postretirement benefit plans liability | 509,972 | 530,532 |
Other | 121,003 | 114,641 |
Total deferred credits and other liabilities | 2,144,959 | 2,146,865 |
Shareholders’ equity | ||
Retained earnings | 1,334,161 | 1,282,335 |
Accumulated other comprehensive loss, net of tax benefits | (2,744) | (2,919) |
Total shareholders’ equity | 2,193,919 | 2,141,918 |
Total liabilities and shareholders’ equity | $ 6,602,908 | $ 6,457,373 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Property, plant and equipment, accumulated depreciation | $ 3,040,153 | $ 2,903,144 |
Shareholders’ equity | ||
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) | 109,311,289 | 109,181,124 |
Common stock, outstanding shares (in shares) | 109,311,289 | 109,181,124 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Utility property, plant and equipment | ||
Nonutility property, plant and equipment, accumulated depreciation | $ 58 | $ 115 |
Shareholders’ equity | ||
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) | 17,324,376 | 17,324,376 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders' Equity and Common Stock Equity - USD ($) $ in Thousands | Total | Impact of adoption of ASU No. 2016-13 | Balance, January 1, 2020 after adoption of ASU No. 2016-13 | Hawaiian Electric Company, Inc. and Subsidiaries | Common stock | Common stockBalance, January 1, 2020 after adoption of 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 adoption of ASU No. 2016-13 | Retained earningsBalance, January 1, 2020 after adoption of ASU No. 2016-13 | Retained earningsHawaiian Electric Company, Inc. and Subsidiaries | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss)Balance, January 1, 2020 after adoption of ASU No. 2016-13 | Accumulated other comprehensive income (loss)Hawaiian Electric Company, Inc. and Subsidiaries |
Beginning balance (in shares) at Dec. 31, 2019 | 108,973,000 | 108,973,000 | 17,048,000 | ||||||||||||
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) |
Increase (decrease) in stockholders' equity | |||||||||||||||
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 (in shares) at Mar. 31, 2020 | 109,145,000 | 17,048,000 | |||||||||||||
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) | ||||||
Beginning balance (in shares) at Dec. 31, 2019 | 108,973,000 | 108,973,000 | 17,048,000 | ||||||||||||
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) |
Increase (decrease) in stockholders' equity | |||||||||||||||
Net income for common stock | 147,339 | 126,299 | |||||||||||||
Other comprehensive income (loss), net of tax (benefits) | 19,320 | 99 | |||||||||||||
Common stock dividends | (80,352) | ||||||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 109,181,000 | 17,048,000 | |||||||||||||
Ending balance at Sep. 30, 2020 | 2,323,231 | 2,093,398 | $ 1,678,007 | $ 113,678 | 714,824 | 645,943 | 1,266,076 | (719) | (1,180) | ||||||
Beginning balance (in shares) at Mar. 31, 2020 | 109,145,000 | 17,048,000 | |||||||||||||
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) | ||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
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 (in shares) at Jun. 30, 2020 | 109,181,000 | 17,048,000 | |||||||||||||
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) | ||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Net income for common stock | 65,032 | 60,065 | 65,032 | 60,065 | |||||||||||
Other comprehensive income (loss), net of tax (benefits) | 1,440 | 48 | 1,440 | 48 | |||||||||||
Share-based expenses and other, net | 1,391 | $ 1,391 | |||||||||||||
Common stock dividends | (36,030) | (26,784) | (36,030) | (26,784) | |||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 109,181,000 | 17,048,000 | |||||||||||||
Ending balance at Sep. 30, 2020 | $ 2,323,231 | 2,093,398 | $ 1,678,007 | $ 113,678 | 714,824 | 645,943 | 1,266,076 | (719) | (1,180) | ||||||
Beginning balance (in shares) at Dec. 31, 2020 | 109,181,124 | 109,181,000 | 17,324,000 | ||||||||||||
Beginning balance at Dec. 31, 2020 | $ 2,337,502 | 2,141,918 | $ 1,678,368 | $ 115,515 | 746,987 | 660,398 | 1,282,335 | (1,264) | (2,919) | ||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Net income for common stock | 64,358 | 43,358 | 64,358 | 43,358 | |||||||||||
Other comprehensive income (loss), net of tax (benefits) | (44,016) | 34 | (44,016) | 34 | |||||||||||
Share-based expenses and other, net (in shares) | 100,000 | ||||||||||||||
Share-based expenses and other, net | 605 | $ 605 | |||||||||||||
Common stock dividends | (37,156) | (27,925) | (37,156) | (27,925) | |||||||||||
Ending balance (in shares) at Mar. 31, 2021 | 109,281,000 | 17,324,000 | |||||||||||||
Ending balance at Mar. 31, 2021 | $ 2,321,293 | 2,157,385 | $ 1,678,973 | $ 115,515 | 746,987 | 687,600 | 1,297,768 | (45,280) | (2,885) | ||||||
Beginning balance (in shares) at Dec. 31, 2020 | 109,181,124 | 109,181,000 | 17,324,000 | ||||||||||||
Beginning balance at Dec. 31, 2020 | $ 2,337,502 | 2,141,918 | $ 1,678,368 | $ 115,515 | 746,987 | 660,398 | 1,282,335 | (1,264) | (2,919) | ||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Net income for common stock | 191,645 | 135,601 | |||||||||||||
Other comprehensive income (loss), net of tax (benefits) | $ (38,849) | 175 | |||||||||||||
Common stock dividends | (83,775) | ||||||||||||||
Ending balance (in shares) at Sep. 30, 2021 | 109,311,289 | 109,311,000 | 17,324,000 | ||||||||||||
Ending balance at Sep. 30, 2021 | $ 2,383,543 | 2,193,919 | $ 1,683,090 | $ 115,515 | 746,987 | 740,566 | 1,334,161 | (40,113) | (2,744) | ||||||
Beginning balance (in shares) at Mar. 31, 2021 | 109,281,000 | 17,324,000 | |||||||||||||
Beginning balance at Mar. 31, 2021 | 2,321,293 | 2,157,385 | $ 1,678,973 | $ 115,515 | 746,987 | 687,600 | 1,297,768 | (45,280) | (2,885) | ||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Net income for common stock | 63,872 | 41,901 | 63,872 | 41,901 | |||||||||||
Other comprehensive income (loss), net of tax (benefits) | 16,472 | 35 | 16,472 | 35 | |||||||||||
Share-based expenses and other, net (in shares) | 30,000 | ||||||||||||||
Share-based expenses and other, net | 2,847 | $ 2,847 | |||||||||||||
Common stock dividends | (37,155) | (27,925) | (37,155) | (27,925) | |||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 109,311,000 | 17,324,000 | |||||||||||||
Ending balance at Jun. 30, 2021 | 2,367,329 | 2,171,396 | $ 1,681,820 | $ 115,515 | 746,987 | 714,317 | 1,311,744 | (28,808) | (2,850) | ||||||
Increase (decrease) in stockholders' equity | |||||||||||||||
Net income for common stock | 63,415 | 50,342 | 63,415 | 50,342 | |||||||||||
Other comprehensive income (loss), net of tax (benefits) | (11,305) | 106 | (11,305) | 106 | |||||||||||
Share-based expenses and other, net | 1,270 | $ 1,270 | |||||||||||||
Common stock dividends | $ (37,166) | (27,925) | (37,166) | (27,925) | |||||||||||
Ending balance (in shares) at Sep. 30, 2021 | 109,311,289 | 109,311,000 | 17,324,000 | ||||||||||||
Ending balance at Sep. 30, 2021 | $ 2,383,543 | $ 2,193,919 | $ 1,683,090 | $ 115,515 | $ 746,987 | $ 740,566 | $ 1,334,161 | $ (40,113) | $ (2,744) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Shareholders' Equity and Common Stock Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Common stock dividends (in dollars per share) | $ 0.34 | $ 0.34 | $ 0.34 | $ 0.33 | $ 0.33 | $ 0.33 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 193,062 | $ 148,756 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 184,389 | 178,674 |
Other amortization | 24,511 | 39,580 |
Provision for credit losses | (22,367) | 39,504 |
Loans originated, held for sale | (281,744) | (380,864) |
Proceeds from sale of loans, held for sale | 304,820 | 387,247 |
Gain on sale of investment securities, net | (528) | (9,275) |
Gain on sale of loans, net | (7,497) | (15,933) |
Deferred income taxes | (13,473) | (14,464) |
Share-based compensation expense | 6,727 | 5,449 |
Allowance for equity funds used during construction | (6,995) | (6,556) |
Other | (7,046) | (4,773) |
Changes in assets and liabilities | ||
Decrease (increase) in accounts receivable and unbilled revenues, net | (58,758) | 11,252 |
Decrease (increase) in fuel oil stock | (42,612) | 31,899 |
Decrease (increase) in regulatory assets | (4,952) | 10,012 |
Increase (decrease) in regulatory liabilities | 8,806 | (15,755) |
Increase (decrease) in accounts, interest and dividends payable | 36,850 | (20,794) |
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | 11,133 | (32,750) |
Decrease in defined benefit pension and other postretirement benefit plans liability | (5,288) | (1,398) |
Change in other assets and liabilities | (51,833) | (37,543) |
Net cash provided by operating activities | 267,205 | 312,268 |
Cash flows from investing activities | ||
Available-for-sale investment securities purchased | (1,318,520) | (985,874) |
Principal repayments on available-for-sale investment securities | 449,459 | 331,238 |
Proceeds from sale of available-for-sale investment securities | 197,354 | 169,157 |
Purchases of held-to-maturity investment securities | (314,327) | (28,602) |
Proceeds from repayments or maturities of held-to-maturity investment securities | 49,074 | 34,740 |
Purchase of stock from Federal Home Loan Bank | (32,980) | (24,006) |
Redemption of stock from Federal Home Loan Bank | 31,660 | 21,520 |
Net decrease (increase) in loans held for investment | 157,619 | (374,307) |
Proceeds from sale of residential loans | 17,398 | 0 |
Capital expenditures | (219,252) | (296,172) |
Proceeds from sale of low-income housing investments | 0 | 6,725 |
Contributions to low income housing investments | (12,402) | (3,951) |
Other | 10,078 | 4,899 |
Net cash used in investing activities | (984,839) | (1,144,633) |
Cash flows from financing activities | ||
Net increase in deposit liabilities | 589,581 | 766,235 |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | 27,755 | (112,710) |
Net increase in other bank borrowings with original maturities of three months or less | 39,635 | 6,765 |
Proceeds from issuance of short-term debt | 0 | 165,000 |
Repayment of short-term debt | (65,000) | (100,000) |
Proceeds from issuance of other bank borrowings | 0 | 30,000 |
Proceeds from issuance of long-term debt | 206,988 | 365,146 |
Repayment of long-term debt | (80,607) | (178,291) |
Withheld shares for employee taxes on vested share-based compensation | (2,006) | (5,700) |
Common stock dividends | (111,477) | (108,066) |
Preferred stock dividends of subsidiaries | (1,417) | (1,417) |
Other | (7,462) | (7,275) |
Net cash provided by financing activities | 595,990 | 819,687 |
Net decrease in cash, cash equivalents and restricted cash | (121,644) | (12,678) |
Cash, cash equivalents and restricted cash, beginning of period | 358,979 | 227,685 |
Cash, cash equivalents and restricted cash, end of period | 237,335 | 215,007 |
Less: Restricted cash | (9,412) | (21,881) |
Cash and cash equivalents, end of period | 227,923 | 193,126 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Cash flows from operating activities | ||
Net income | 137,097 | 127,795 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 172,122 | 167,235 |
Other amortization | 17,058 | 24,929 |
Deferred income taxes | (12,333) | (9,827) |
State refundable credit | (7,955) | (7,589) |
Bad debt expense | 1,303 | 1,401 |
Allowance for equity funds used during construction | (6,995) | (6,556) |
Other | 991 | 1,614 |
Changes in assets and liabilities | ||
Decrease (increase) in accounts receivable | (33,621) | 7,076 |
Decrease (increase) in accrued unbilled revenues | (27,491) | 9,842 |
Decrease (increase) in fuel oil stock | (42,563) | 31,494 |
Increase in materials and supplies | (5,653) | (8,092) |
Decrease (increase) in regulatory assets | (4,952) | 10,012 |
Increase (decrease) in regulatory liabilities | 8,806 | (15,755) |
Increase (decrease) in accounts payable | 27,210 | (34,874) |
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | 2,934 | (34,768) |
Decrease in defined benefit pension and other postretirement benefit plans liability | (3,902) | (3,064) |
Change in other assets and liabilities | (23,800) | (15,918) |
Net cash provided by operating activities | 198,256 | 244,955 |
Cash flows from investing activities | ||
Capital expenditures | (203,746) | (267,482) |
Other | 6,157 | 7,295 |
Net cash used in investing activities | (197,589) | (260,187) |
Cash flows from financing activities | ||
Net increase in other bank borrowings with original maturities of three months or less | 0 | (38,987) |
Proceeds from issuance of short-term debt | 0 | 100,000 |
Repayment of short-term debt | (50,000) | (100,000) |
Proceeds from issuance of long-term debt | 115,000 | 255,000 |
Repayment of long-term debt | 0 | (109,000) |
Common stock dividends | (83,775) | (80,352) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,496) | (1,496) |
Other | (942) | (1,569) |
Net cash provided by financing activities | (21,213) | 23,596 |
Net decrease in cash, cash equivalents and restricted cash | (20,546) | 8,364 |
Cash, cash equivalents and restricted cash, beginning of period | 63,326 | 41,894 |
Cash, cash equivalents and restricted cash, end of period | 42,780 | 50,258 |
Less: Restricted cash | (6,313) | (20,458) |
Cash and cash equivalents, end of period | $ 36,467 | $ 29,800 |
Basis of presentation
Basis of presentation | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020.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 September 30, 2021 and December 31, 2020 and the results of their operations for the three and nine months ended September 30, 2021 and 2020 and cash flows for the nine months ended September 30, 2021 and 2020. 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. Income Taxes . In December 2019, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which removes specific exceptions to the general principles in Topic 740, improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP under certain situations. ASU No. 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company adopted the ASU as of January 1, 2021 with no material impact on its consolidated financial statements and related disclosures. Leases . On July 19, 2021 FASB issued ASU No. 2021-05, “Leases (Topic 842): Lessors–Certain Leases with Variable Lease Payments.” The ASU allows lessors to treat sales-type leases with variable payments to be classified as operating leases if the sales-type lease treatment under Topic 842 would result in a selling loss at lease commencement (day-one loss). The Company early adopted ASU No. 2021-05 as of September 30, 2021 retrospectively to leases that commenced on or after the adoption of ASU No. 2016-02, “Leases (Topic 842)”. The adoption of ASU No. 2021-05 did not have a material impact on the Company’s consolidated financial statements and related disclosures. |
Segment financial information
Segment financial information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment financial information | Segment financial information (in thousands) Electric utility Bank Other Total Three months ended September 30, 2021 Revenues from external customers $ 679,482 $ 76,208 $ 1,214 $ 756,904 Intersegment revenues (eliminations) 17 — (17) — Revenues $ 679,499 $ 76,208 $ 1,197 $ 756,904 Income (loss) before income taxes $ 61,175 $ 25,241 $ (8,265) $ 78,151 Income taxes (benefit) 10,335 5,976 (2,046) 14,265 Net income (loss) 50,840 19,265 (6,219) 63,886 Preferred stock dividends of subsidiaries 498 — (27) 471 Net income (loss) for common stock $ 50,342 $ 19,265 $ (6,192) $ 63,415 Nine months ended September 30, 2021 Revenues from external customers $ 1,846,206 $ 230,599 $ 3,302 $ 2,080,107 Intersegment revenues (eliminations) 36 — (36) — Revenues $ 1,846,242 $ 230,599 $ 3,266 $ 2,080,107 Income (loss) before income taxes $ 170,163 $ 102,335 $ (31,207) $ 241,291 Income taxes (benefit) 33,066 23,230 (8,067) 48,229 Net income (loss) 137,097 79,105 (23,140) 193,062 Preferred stock dividends of subsidiaries 1,496 — (79) 1,417 Net income (loss) for common stock $ 135,601 $ 79,105 $ (23,061) $ 191,645 Total assets (at September 30, 2021) $ 6,602,908 $ 9,010,419 $ 146,836 $ 15,760,163 Three months ended September 30, 2020 Revenues from external customers $ 562,559 $ 78,644 $ 224 $ 641,427 Intersegment revenues (eliminations) 9 — (9) — Revenues $ 562,568 $ 78,644 $ 215 $ 641,427 Income (loss) before income taxes $ 74,398 $ 15,027 $ (9,904) $ 79,521 Income taxes (benefit) 13,835 2,877 (2,694) 14,018 Net income (loss) 60,563 12,150 (7,210) 65,503 Preferred stock dividends of subsidiaries 498 — (27) 471 Net income (loss) for common stock $ 60,065 $ 12,150 $ (7,183) $ 65,032 Nine months ended September 30, 2020 Revenues from external customers $ 1,694,195 $ 233,096 $ 267 $ 1,927,558 Intersegment revenues (eliminations) 30 — (30) — Revenues $ 1,694,225 $ 233,096 $ 237 $ 1,927,558 Income (loss) before income taxes $ 157,111 $ 51,330 $ (28,994) $ 179,447 Income taxes (benefit) 29,316 9,405 (8,030) 30,691 Net income (loss) 127,795 41,925 (20,964) 148,756 Preferred stock dividends of subsidiaries 1,496 — (79) 1,417 Net income (loss) for common stock $ 126,299 $ 41,925 $ (20,885) $ 147,339 Total assets (at December 31, 2020) $ 6,457,373 $ 8,396,533 $ 150,101 $ 15,004,007 Intercompany electricity sales of the Utilities to ASB and “other” segments are not eliminated because those segments would need to purchase electricity from another source if it were not provided by the Utilities and the profit on such sales is nominal. 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 | 9 Months Ended |
Sep. 30, 2021 | |
Electric Utility Subsidiary [Abstract] | |
Electric utility segment | Electric utility segment Unconsolidated variable interest entities. Power purchase agreements . As of September 30, 2021, the Utilities had five PPAs for firm capacity (including the Puna Geothermal Venture (PGV) PPA that went offline in May 2018 due to lava flow on Hawaii Island, but returned to service with firm capacity of 13 MW in the first quarter of 2021 and ramped up to 23.9 MW in the second quarter of 2021) 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 September 30 Nine months ended September 30 (in millions) 2021 2020 2021 2020 Kalaeloa $ 56 $ 39 $ 142 $ 111 AES Hawaii 32 33 98 96 HPOWER 20 18 51 52 Hamakua Energy 15 12 38 36 Puna Geothermal Venture 9 — 20 — Wind IPPs 38 30 95 83 Solar IPPs 12 17 40 45 Other IPPs 1 4 — 7 3 Total IPPs $ 186 $ 149 $ 491 $ 426 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 had been negotiating an extension to the PPA, and the PPA had automatically extended on a month-to-month basis as long as the parties were still negotiating in good faith. In October 2021, Hawaiian Electric and Kalaeloa signed the Amended and Restated Power Purchase Agreement for Firm Dispatchable Capacity and Energy (Amended and Restated PPA) to extend the PPA for an additional term of 10 years. Hawaiian Electric will be submitting an application for approval of the Amended and Restated PPA to the PUC. 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. Hawaiian Electric does not intend to extend the term of the PPA which will expire on September 1, 2022. 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 greenhouse 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. As a result, the PUC reopened the docket for further proceedings, including re-examining all of the issues in the proceedings. On July 9, 2020, the PUC issued an order denying 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 September 9, 2020, the PUC denied Hu Honua’s motion for reconsideration of the PUC’s order. Hu Honua filed its notice of appeal to the Hawaii Supreme Court of the PUC’s order denying Hu Honua’s motion for reconsideration. On May 24, 2021, the Hawaii Supreme Court vacated the PUC’s decision and remanded the matter back to the PUC for further proceedings. On June 30, 2021, the PUC issued an order reopening the docket consistent with the Hawaii Supreme Court’s order. A contested case hearing has been scheduled for January 2022. Molokai New Energy Partners (MNEP). In July 2018, the PUC approved Maui Electric’s PPA with MNEP to purchase solar energy from a photovoltaic (PV) plus battery storage project. The 4.88 MW PV and 3 MW Battery Energy Storage System project was to deliver no more than 2.64 MW at any time to the Molokai system. On March 25, 2020, MNEP filed a complaint in the United Stated District Court for the District of Hawaii against Maui Electric claiming breach of contract. On June 3, 2020, Maui Electric provided Notice of Default and Termination of the PPA to MNEP terminating the PPA with an effective date of July 10, 2020. Thereafter, MNEP filed an amended Complaint to include claims relating to the termination and Hawaiian Electric filed its Answer to the Amended Complaint on September 11, 2020, disputing the facts presented by MNEP and all claims within the original and amended complaint. Currently, the discovery phase is ongoing. 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 or community support 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. Hawaii Electric Light and Hawaiian Electric began to incorporate their portion of the deferred project costs in rate base and started the amortization over a 12-year period in January 2020 and November 2020, respectively. The PUC required the benefit savings of the project to be passed on to customers. 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 September 30, 2021, the Utilities’ regulatory liability was $9.9 million ($5.8 million for Hawaiian Electric, $1.6 million for Hawaii Electric Light and $2.5 million for Maui Electric) for the O&M expense savings that are being amortized or to be included in future rates. As part of the settlement agreement approved in the Hawaiian Electric 2020 test year rate case, the regulatory liability for Hawaiian Electric will be amortized over five years, beginning in November 2020, and the O&M benefits for Hawaiian Electric was considered flowed through to customers. As part of the PBR proceeding, the regulatory liability as of December 31, 2020 of approximately $1.6 million and $2.3 million, respectively, for Hawaii Electric Light and Maui Electric was flowed to customers as part of the customer dividend in the annual revenue adjustment in 2021. On July 7, 2021, the PUC issued an order modifying the reporting frequency of the Semi-Annual Enterprise System Benefits (SAESB) reports to an Annual Enterprise System Benefits (AESB) report on the achieved benefits savings. The most recent SAESB report was filed on February 26, 2021 for the period July 1 through December 31, 2020. 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 federal 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 September 30, 2021, 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 September 30, 2021, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $10.4 million. The reserve balance represents the probable and reasonably estimable undiscounted cost for the onshore and offshore investigation and remediation. The final remediation costs will depend on the actual onshore and 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. Prior to the implementation of the performance-based regulation framework (PBR Framework), the decoupling mechanism had 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 kWh sales, (2) rate adjustment mechanism (RAM) revenues for escalation in certain O&M expenses and rate base changes, (3) major project interim recovery (MPIR) adjustment mechanism, (4) performance incentive mechanisms (PIMs), and (5) an earnings sharing mechanism (ESM), which would provide for a reduction of revenues between rate cases in the event the utility exceeds the authorized rate-making return on average common equity (ROACE) allowed in its most recent rate case. Performance-based regulation framework. On December 23, 2020, the PUC issued a D&O (PBR D&O) approving the new PBR Framework. Under the PBR Framework, the Utilities’ decoupling will continue to be used with modifications, as described below. The existing cost recovery mechanisms will continue as currently implemented (e.g., the Energy Cost Recovery Clause (ECRC), Purchased Power Adjustment Clause (PPAC), Demand Side Management surcharge (DSM), Renewable Energy Infrastructure Program (REIP), Demand Response Adjustment Clause (DRAC), Pension and Other Post-Employment Benefits (OPEB) tracking mechanisms). In addition to annual revenues provided by the annual revenue adjustment (ARA), the Utilities may seek relief for extraordinary projects or programs through the Exceptional Project Recovery Mechanism (EPRM) (formerly known as the MPIR adjustment mechanism) and earn financial rewards for exemplary performance as provided through a portfolio of PIMs and Shared Savings Mechanisms (SSMs). The PBR Framework will incorporate a variety of other performance mechanisms, including Scorecards, Reported Metrics, and an expedited Pilot Process. The PBR Framework also contains a number of safeguards, including a symmetric ESM which protects the Utilities and customers from excessive earnings or losses, as measured by the Utilities’ achieved rate-making ROACE and a Re-Opener mechanism, under which the PUC will open an examination, at its discretion, to determine if adjustments or modifications to specific PBR mechanisms are appropriate. The new PBR Framework became fully effective on June 1, 2021. On September 17, 2021, the PUC issued an order including a proposed new set of potential PIMs to address these areas of PUC concern: • Grid reliability, • Timely retirement of fossil fuel generation units, • Interconnection of large-scale renewable energy projects, • Cost control for fossil fuel, purchased power, and other non-ARA costs, and • Expedient utilization of grid services from demand-side resources The order established a procedural schedule by which a PBR Working Group (consisting of parties from the docket in which the new PBR Framework was established) will comment upon and evaluate the potential new PIMs and potentially propose alternatives. The schedule included procedural steps for technical conferences, statements of position filings and an evidentiary hearing. The PUC has not stated when any new PIMs might become effective. On November 2, 2021, the PUC suspended the previous procedural schedule, pending review of schedule modifications. 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). All Utilities were limited to the RAM Cap in 2020. Under the PBR Framework, the ARA mechanism replaced the RAM, and became effective on June 1, 2021. The transition to the ARA includes the continuation of the 2020 RAM revenue adjustment. Annual revenue adjustment mechanism . The PBR Framework established a five-year multi-year rate period during which there will be no general rate cases. Target revenues will be adjusted according to an index-driven ARA based on (i) an inflation factor, (ii) a predetermined X-factor to encompass productivity, which is set at zero, (iii) a Z-factor to account for exceptional circumstances not in the Utilities’ control and (iv) a customer dividend consisting of a negative adjustment of 0.22% compounded annually and a flow through of the “pre-PBR” savings commitment from the management audit recommendations developed in a prior docket. As a result of an Order issued by the PUC pursuant to a motion for partial reconsideration the customer dividend for “pre-PBR” savings commitment portion to be delivered to customers will be at a rate of $6.6 million per year from 2021 to 2025, and the Enterprise Resource Planning system benefits savings of $3.9 million, to be delivered to customers in 2021. The implementation of the ARA occurred on June 1, 2021. Earnings sharing mechanism . A symmetrical ESM for achieved rate-making ROACE outside of a 300 basis points dead band above or below the current authorized ROACE of 9.5% for each of the Utilities. There is a 50/50 sharing between customers and Utilities for the achieved rate-making ROACE falling within 150 basis points outside of the dead band in either direction, and a 90/10 sharing for any further difference. A reopening or review of the PBR terms will be triggered if the Utilities credit rating outlook indicates a potential credit downgrade below investment grade status, or if its achieved rate-making ROACE enters the outer most tier of the ESM. 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. On May 26, 2021, the PUC approved 2021 MPIR amounts totaling $21.8 million, including revenue taxes, for the Schofield Generating Station ($17.6 million), West Loch PV Project ($3.3 million), and Grid Modernization Strategy (GMS) Phase 1 project ($0.9 million for all three utilities) for the accrual of revenues effective January 1, 2021, that included the 2021 return on project amount (based on approved amounts) in rate base, depreciation and incremental O&M expenses. Under the PBR framework, the Utilities began recovery of the annualized 2021 MPIR amounts effective June 1, 2021 through the RBA rate adjustment. On September 27, 2021, the PUC issued an order rejecting the Utilities’ August 31, 2021 request to update target revenues resulting from the GMS Phase 1 Meter Data Management System (MDMS) deferred software go‑live and completion of implementation through July 2021, as it inappropriately relied on an automatic approval provision in Hawaii Administrative Rules. The PUC did not rule on the merits of the Utilities’ request and offered the Utilities to file an amended request as soon as practicable. On October 7, 2021, the Utilities filed an amended request, requesting PUC approval of RBA tariff sheets reflecting the change to target revenues associated with the GMS Phase 1 MDMS deferred software go-live and completion of implementation through July 2021. Exceptional project recovery mechanism . Under the PBR Framework, the existing MPIR adjustment mechanism was renamed EPRM to include deferred and O&M expense projects and to permit the Utilities to include the full amount of approved costs in the EPRM for recovery in the first year the project goes into service, pro-rated for the portion of the year the project is in service. Any pending application for MPIR relief submitted by the Utilities prior to the PBR D&O will be grandfathered under the MPIR Guidelines. The Utilities may alternatively request that pending MPIR applications be reviewed under EPRM Guidelines. EPRM recovery will be in accordance with the EPRM Guidelines limited to the lesser of actual incurred project costs or PUC-approved amounts, net of savings. Currently, the Utilities are seeking EPRM recovery of eight projects with total project costs of $324 million, subject to PUC approval. Pilot process . The PBR D&O approved a Pilot Process to foster innovation by establishing an expedited implementation process for pilots that test new technologies, programs, business models, and other arrangements. This is intended to support initiatives by the Utilities to test new programs and ideas quickly and elevate any successful pilots for consideration of full-scale implementation. The proposed pilots would be subject to PUC approval with a total annual cap of $10 million. The Pilot Process will feature the two primary activities: an initial “Workplan Development” phase, during which the Utilities identify and scope areas of interests, so as to inform the subsequent “Implementation” phase, during which the Utilities submit specific pilot proposals for expedited review by the PUC and implement the pilot upon approval. The PUC will issue an order, approving, denying, or modifying a proposed Pilot within 45 days of receiving notice of a specific pilot project. On July 9, 2021, the PUC issued an order approving the Utilities’ proposed Pilot Process submitted in April 2021 with modifications, including a cost recovery process that generally allows the Utilities to defer and recover total annual expenditures of approved pilot projects in full over twelve months beginning June 1 of the year following implementation through the RBA rate adjustment, although the Utilities may determine on a case-by-case basis that a particular project’s deferred costs should be amortized over a period greater than twelve months. On July 28, 2021, the Utilities submitted the finalized Pilot Process to govern the review of the pilot project proposals in accordance with the July 9, 2021 order. Performance incentive mechanisms . The PUC has established the following PIMs: (1) Service Quality performance incentives, (2) Phase 1 Request for proposal (RFP) PIM for procurement of low-cost renewable energy, (3) Phase 2 RFP PIMs for generation and generation plus storage project, and Grid Services and standalone storage. • Service Quality performance incentives (ongoing). 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 shall remain constant in interim periods, unless otherwise amended by order of the PUC. • 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 2020, the Utilities accrued $0.9 million in estimated rewards for call center performance, net of service reliability penalties, for 2020. The net service quality performance rewards related to 2020 was reflected in the 2021 annual decoupling filing which was approved by the PUC on May 26, 2021, resulting in an increase to customer rates effective June 1, 2021. • Phase 1 RFP PIM. Procurement of low-cost variable renewable resources through the RFP process in 2018 is measured by comparison of the procurement price to target prices. Half of the incentive was earned upon PUC approval of the PPAs. Based on the seven PPAs approved in 2019, the Utilities recognized $1.7 million in 2019 with the remaining award to be recognized in the year following the in-service date of the projects, which is estimated to occur from 2023 to 2024. • Phase 2 RFP PIMs. The PUC order issued on October 9, 2019 establishes pricing thresholds, timelines to complete contracting, and other performance criteria for the performance incentive eligibility. The PIMs provide incentives only without penalties. 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 that potentially qualify for a demand response PIM, however, details of the incentive metrics will be determined by the PUC. On September 15, 2020, the Utilities filed eight power purchase agreements for the Phase 2 RFP. Of those eight, only one project qualified for a potential PIM incentive. On February 16, 2021, the Utilities filed one additional power purchase agreement that qualifies for the declining PIM, which was approved on September 15, 2021. The first allocation of incentives is earned upon PUC approval of the contact and the remaining PIM allocations begin after the project achieves commercial operations and are earned based on delivered energy for the prior year, through 2025. The Utilities accrued $0.1 million in incentives in September 2021. On December 31, 2020, the PUC approved the two Grid Services Purchase Agreements without further clarification regarding the demand response PIM. The Utility filed a letter in January 2021 with the PUC seeking guidance on the next steps to define the demand response incentive metric details. • The PUC established the following two new PIMs in its PBR D&O, which were approved in an order issued on March 23, 2021 and became effective on June 1, 2021. • Renewable portfolio standard (RPS)-A PIM that provides a financial reward for accelerating the achievement of RPS goals. The Utilities may earn a reward for the amount of system generation above the interpolated statutory RPS goal at $20/MWh in 2021 and 2022, $15/MWh in 2023, and $10/MWh for the remainder of the multi-year rate period (MRP). Penalties are already prescribed in the RPS as $20/MWh for failing to meet RPS targets in 2030, 2040 and 2045. The evaluation period commenced on January 1, 2021. • Grid Services Procurement PIM that provides financial rewards for grid services acquired in 2021 and 2022. The Utilities can earn a total maximum reward of $1.5 million over 2021 and 2022. The evaluation period commenced on January 1, 2021. • The PUC also established the following three new PIMs in its PBR D&O, which were approved by the PUC on May 17, 2021 and became effective on June 1, 2021. • Interconnection Approval PIM that provides financial rewards and penalties for interconnection times for distributed energy resources systems <100 kW in size. The Utilities can earn a total annual maximum reward of $3.0 million or a total annual maximum penalty of $0.9 million. The evaluation period commenced on January 1, 2021. • Low-to-Moderate Income (LMI) Energy Efficiency PIM that provides financial reward for collaboration between the Utilities and the third-party Public Benefits Fee Administrator to deliver energy savings for low- and moderate-income customers. The Utilities can earn a total annual maximum reward of $2.0 million. The PIM will initially have a duration of three years and be subject to an annual review. The evaluation period is based on Hawaii Energy’s program year with the initial evaluation year being the period of July 1, 2021 through June 30, 2022. • Advanced Metering Infrastructure Utilization PIM that provides financial rewards for leveraging grid modernization investments and engaging customers beyond what is already planned in the Phase 1 Grid Modernization program. The Utilities can earn a total annual maximum reward of $2.0 million. The PIM will initially have a duration of three years after which it will be re-evaluated. The evaluation period commenced on January 1, 2021. Annual review cycle . PBR D&O established an annual review cycle for revenue adjustments under the PBR Framework, including the biannual submission of the revenue reports. The Utilities filed the fall revenue report on October 29, 2021, which is subject to PUC approval. The filing reflected ARA revenues for 2022 to be collected from January 1 through December 31, 2022, as follows: (in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Total 2022 ARA revenues $ 19.8 $ 4.9 $ 4.8 $ 29.5 Management Audit savings commitment (4.6) (1.0) (1.0) (6.6) Net 2022 ARA revenues $ 15.2 $ 3.9 $ 3.8 $ 22.9 The proposed net incremental amounts between the 2021 spring and fall revenue reports are as follows. The amounts are to be collected (refunded) from January 1 through December 31, 2022 under the RBA rate tariffs, which was proposed in the 2021 fall revenue report filing and is subject to PUC approval. (in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Total Incremental RAM revenues and ARA revenues $ 41.7 $ 8.9 $ 10.9 $ 61.5 Incremental accrued RBA balance through September 30, 2021 (and associated revenue taxes) 21.9 2.5 (0.1) 24.3 Incremental Performance Incentive Mechanisms (net) — — 0.1 0.1 Incremental MPIR/EPRM Revenue Adjustment 9.8 0.3 0.3 10.4 Net incremental amount to be collected under the RBA rate tariffs $ 73.4 $ 11.7 $ 11.1 $ 96.2 Note: Columns may not foot due to rounding. Most recent rate proceedings. Hawaiian Electric 2020 test year rate case . On October 22, 2020, the PUC issued a final D&O approving the stipulated settlement agreement filed in the proceeding. As a result, there will be no increase in base electric rates established in the 2017 test year rate case. In the final D&O, the PUC approved the capital structure that consists of a 58% total equity ratio, and an authorized ROACE of 9.5% for the 2020 test year. The resulting return on rate base (RORB) is 7.37%. The D&O |
Bank segment
Bank segment | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30 Nine months ended September 30 (in thousands) 2021 2020 2021 2020 Interest and dividend income Interest and fees on loans $ 49,445 $ 52,419 $ 150,418 $ 161,505 Interest and dividends on investment securities 11,996 7,221 31,709 22,939 Total interest and dividend income 61,441 59,640 182,127 184,444 Interest expense Interest on deposit liabilities 1,176 2,287 3,919 8,945 Interest on other borrowings 5 61 55 449 Total interest expense 1,181 2,348 3,974 9,394 Net interest income 60,260 57,292 178,153 175,050 Provision for credit losses (1,725) 13,970 (22,367) 39,504 Net interest income after provision for credit losses 61,985 43,322 200,520 135,546 Noninterest income Fees from other financial services 4,800 4,233 15,337 11,906 Fee income on deposit liabilities 4,262 3,832 12,029 11,842 Fee income on other financial products 2,124 1,524 6,767 4,608 Bank-owned life insurance 2,026 1,965 6,211 4,432 Mortgage banking income 1,272 7,681 7,497 15,933 Gain on sale of investment securities, net — — 528 9,275 Other income, net 283 (231) 631 (69) Total noninterest income 14,767 19,004 49,000 57,927 Noninterest expense Compensation and employee benefits 30,888 26,431 86,595 77,287 Occupancy 5,157 5,693 15,226 16,402 Data processing 4,278 3,366 13,162 11,052 Services 2,272 2,624 7,609 7,907 Equipment 2,373 2,001 6,989 6,630 Office supplies, printing and postage 1,072 1,187 3,094 3,577 Marketing 995 727 2,308 1,908 FDIC insurance 808 714 2,412 1,567 Other expense 1 3,668 4,556 9,790 15,813 Total noninterest expense 51,511 47,299 147,185 142,143 Income before income taxes 25,241 15,027 102,335 51,330 Income taxes 5,976 2,877 23,230 9,405 Net income 19,265 12,150 79,105 41,925 Other comprehensive income (loss), net of taxes (11,684) 1,393 (40,439) 20,960 Comprehensive income $ 7,581 $ 13,543 $ 38,666 $ 62,885 1 The three- and nine-month periods ended September 30, 2021 include approximately $0.1 million and $0.5 million, respectively, of certain direct and incremental COVID-19 related costs. The three and nine-month periods ended September 30, 2020 include approximately $0.7 million and $4.5 million, respectively, of certain significant direct and incremental COVID-19 related costs. These costs for the first nine months of 2020, which have been recorded in Other expense , include $2.4 million of compensation expense and $1.7 million of enhanced cleaning and sanitation costs. Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended September 30, Nine months ended September 30 (in thousands) 2021 2020 2021 2020 Interest and dividend income $ 61,441 $ 59,640 $ 182,127 $ 184,444 Noninterest income 14,767 19,004 49,000 57,927 Less: Gain on sale of investment securities, net — — 528 9,275 *Revenues-Bank 76,208 78,644 230,599 233,096 Total interest expense 1,181 2,348 3,974 9,394 Provision for credit losses (1,725) 13,970 (22,367) 39,504 Noninterest expense 51,511 47,299 147,185 142,143 Less: Retirement defined benefits expense (credit)—other than service costs (184) 473 (1,648) 1,341 *Expenses-Bank 51,151 63,144 130,440 189,700 *Operating income-Bank 25,057 15,500 100,159 43,396 Add back: Retirement defined benefits expense (credit)—other than service costs (184) 473 (1,648) 1,341 Add back: Gain on sale of investment securities, net — — 528 9,275 Income before income taxes $ 25,241 $ 15,027 $ 102,335 $ 51,330 American Savings Bank, F.S.B. Balance Sheets Data (in thousands) September 30, 2021 December 31, 2020 Assets Cash and due from banks $ 109,942 $ 178,422 Interest-bearing deposits 80,007 114,304 Cash and cash equivalents 189,949 292,726 Investment securities Available-for-sale, at fair value 2,580,830 1,970,417 Held-to-maturity, at amortized cost (fair value of $484,654 and $229,963, respectively) 491,871 226,947 Stock in Federal Home Loan Bank, at cost 10,000 8,680 Loans held for investment 5,122,124 5,333,843 Allowance for credit losses (75,944) (101,201) Net loans 5,046,180 5,232,642 Loans held for sale, at lower of cost or fair value 53,998 28,275 Other 555,401 554,656 Goodwill 82,190 82,190 Total assets $ 9,010,419 $ 8,396,533 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 2,931,394 $ 2,598,500 Deposit liabilities—interest-bearing 5,045,144 4,788,457 Other borrowings 129,305 89,670 Other 168,064 183,731 Total liabilities 8,273,907 7,660,358 Common stock 1 1 Additional paid-in capital 353,429 351,758 Retained earnings 408,575 369,470 Accumulated other comprehensive income (loss), net of taxes Net unrealized gains (losses) on securities $ (20,322) $ 19,986 Retirement benefit plans (5,171) (25,493) (5,040) 14,946 Total shareholder’s equity 736,512 736,175 Total liabilities and shareholder’s equity $ 9,010,419 $ 8,396,533 Other assets Bank-owned life insurance $ 166,486 $ 163,265 Premises and equipment, net 205,624 206,134 Accrued interest receivable 22,036 24,616 Mortgage-servicing rights 10,272 10,020 Low-income housing investments 84,728 83,435 Other 66,255 67,186 $ 555,401 $ 554,656 Other liabilities Accrued expenses $ 59,270 $ 62,694 Federal and state income taxes payable — 6,582 Cashier’s checks 37,451 38,011 Advance payments by borrowers 5,129 10,207 Other 66,214 66,237 $ 168,064 $ 183,731 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 of $129.3 million and $89.7 million at September 30, 2021 and December 31, 2020, respectively. 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 September 30, 2021 Available-for-sale U.S. Treasury and federal agency obligations $ 90,831 $ 1,334 $ (90) $ 92,075 1 $ 19,851 $ (90) — $ — $ — Mortgage-backed securities* 2,471,650 11,193 (41,160) 2,441,683 105 1,772,753 (36,561) 9 123,882 (4,599) Corporate bonds 30,684 961 — 31,645 — — — — — — Mortgage revenue bonds 15,427 — — 15,427 — — — — — — $ 2,608,592 $ 13,488 $ (41,250) $ 2,580,830 106 $ 1,792,604 $ (36,651) 9 $ 123,882 $ (4,599) Held-to-maturity U.S. Treasury and Federal agency obligations $ 40,064 $ 100 $ (13) $ 40,151 1 $ 19,941 $ (13) — $ — $ — Mortgage-backed securities* 451,807 2,387 (9,691) 444,503 23 325,907 (8,278) 2 23,860 (1,413) $ 491,871 $ 2,487 $ (9,704) $ 484,654 24 $ 345,848 $ (8,291) 2 $ 23,860 $ (1,413) December 31, 2020 Available-for-sale U.S. Treasury and federal agency obligations $ 60,260 $ 2,062 $ — $ 62,322 — $ — $ — — $ — $ — Mortgage-backed securities* 1,825,893 26,817 (3,151) 1,849,559 22 373,924 (3,151) — — — Corporate bonds 29,776 1,575 — 31,351 — — — — — — Mortgage revenue bonds 27,185 — — 27,185 — — — — — — $ 1,943,114 $ 30,454 $ (3,151) $ 1,970,417 22 $ 373,924 $ (3,151) — $ — $ — Held-to-maturity Mortgage-backed securities* $ 226,947 $ 3,846 $ (830) $ 229,963 7 $ 114,152 $ (830) — $ — $ — $ 226,947 $ 3,846 $ (830) $ 229,963 7 $ 114,152 $ (830) — $ — $ — * 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 September 30, 2021 and December 31, 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 September 30, 2021 and December 31, 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: September 30, 2021 Amortized cost Fair value (in thousands) Available-for-sale Due in one year or less $ — $ — Due after one year through five years 76,247 78,071 Due after five years through ten years 45,268 45,649 Due after ten years 15,427 15,427 136,942 139,147 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 2,471,650 2,441,683 Total available-for-sale securities $ 2,608,592 $ 2,580,830 Held-to-maturity Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 40,064 40,151 Due after ten years — — 40,064 40,151 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 451,807 444,503 Total held-to-maturity securities $ 491,871 $ 484,654 The proceeds, gross gains and losses from sales of available-for-sale securities were as follows: Three months ended September 30 Nine months ended September 30 2021 2020 2021 2020 (in thousands) Proceeds $ — $ — $ 197,354 $ 169,157 Gross gains — — 975 9,312 Gross losses — — 447 37 Tax expense on realized gains — — 142 2,492 The components of loans were summarized as follows: September 30, 2021 December 31, 2020 (in thousands) Real estate: Residential 1-4 family $ 2,172,073 $ 2,144,239 Commercial real estate 1,090,816 983,865 Home equity line of credit 851,416 963,578 Residential land 19,399 15,617 Commercial construction 109,716 121,424 Residential construction 9,170 11,022 Total real estate 4,252,590 4,239,745 Commercial 758,338 936,748 Consumer 122,656 168,733 Total loans 5,133,584 5,345,226 Less: Deferred fees and discounts (11,460) (11,383) Allowance for credit losses (75,944) (101,201) Total loans, net $ 5,046,180 $ 5,232,642 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 (balances and changes) 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 September 30, 2021 Allowance for credit losses: Beginning balance $ 5,518 $ 28,708 $ 5,335 $ 618 $ 1,629 $ 16 $ 20,058 $ 16,370 $ 78,252 Charge-offs (47) — (5) — — — (266) (1,597) (1,915) Recoveries 5 — 7 35 — — 417 1,118 1,582 Provision 522 (2,750) 441 (19) 104 (3) (758) 488 (1,975) Ending balance $ 5,998 $ 25,958 $ 5,778 $ 634 $ 1,733 $ 13 $ 19,451 $ 16,379 $ 75,944 Three months ended September 30, 2020 Allowance for credit losses: Beginning balance $ 3,911 $ 21,100 $ 6,214 $ 356 $ 4,757 $ 14 $ 13,868 $ 31,087 $ 81,307 Charge-offs — — — — — — (1,727) (3,881) (5,608) Recoveries 12 — 50 12 — — 211 1,005 1,290 Provision (286) 11,049 (390) 178 1,282 (3) 5,840 (3,200) 14,470 Ending balance $ 3,637 $ 32,149 $ 5,874 $ 546 $ 6,039 $ 11 $ 18,192 $ 25,011 $ 91,459 Nine months ended September 30, 2021 Allowance for credit losses: Beginning balance $ 4,600 $ 35,607 $ 6,813 $ 609 $ 4,149 $ 11 $ 25,462 $ 23,950 $ 101,201 Charge-offs (67) — (45) — — — (1,356) (6,388) (7,856) Recoveries 59 — 83 56 — — 1,056 3,312 4,566 Provision 1,406 (9,649) (1,073) (31) (2,416) 2 (5,711) (4,495) (21,967) Ending balance $ 5,998 $ 25,958 $ 5,778 $ 634 $ 1,733 $ 13 $ 19,451 $ 16,379 $ 75,944 Nine months ended September 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) — — (2,795) (16,466) (19,619) Recoveries 67 — 56 26 — — 503 2,426 3,078 Provision (953) 16,888 (563) 486 3,653 (6) 9,317 6,382 35,204 Ending balance $ 3,637 $ 32,149 $ 5,874 $ 546 $ 6,039 $ 11 $ 18,192 $ 25,011 $ 91,459 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 September 30, 2021 Allowance for loan commitments: Beginning balance $ 400 $ 2,400 $ 850 $ 3,650 Provision — 300 (50) 250 Ending balance $ 400 $ 2,700 $ 800 $ 3,900 Three months ended September 30, 2020 Allowance for loan commitments: Beginning balance $ 300 $ 7,500 $ 300 $ 8,100 Provision — (800) 300 (500) Ending balance $ 300 $ 6,700 $ 600 $ 7,600 Nine months ended September 30, 2021 Allowance for loan commitments: Beginning balance $ 300 $ 3,000 $ 1,000 $ 4,300 Provision 100 (300) (200) (400) Ending balance $ 400 $ 2,700 $ 800 $ 3,900 Nine months ended September 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 — 4,024 276 4,300 Ending balance $ 300 $ 6,700 $ 600 $ 7,600 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) 2021 2020 2019 2018 2017 Prior Revolving Converted to term loans Total September 30, 2021 Residential 1-4 family Current $ 541,140 $ 471,759 $ 150,704 $ 75,827 $ 142,235 $ 778,048 $ — $ — $ 2,159,713 30-59 days past due — — — — — 2,224 — — 2,224 60-89 days past due — 276 — — — 1,308 — — 1,584 Greater than 89 days past due — — 3,949 424 — 4,179 — — 8,552 541,140 472,035 154,653 76,251 142,235 785,759 — — 2,172,073 Home equity line of credit Current — — — — — — 809,566 39,932 849,498 30-59 days past due — — — — — — 126 129 255 60-89 days past due — — — — — — 107 101 208 Greater than 89 days past due — — — — — — 1,029 426 1,455 — — — — — — 810,828 40,588 851,416 Residential land Current 8,905 7,341 1,659 647 268 182 — — 19,002 30-59 days past due — — — — — 97 — — 97 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — 300 — — 300 8,905 7,341 1,659 647 268 579 — — 19,399 Residential construction Current 4,664 4,238 — — 268 — — — 9,170 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 4,664 4,238 — — 268 — — — 9,170 Consumer Current 27,059 18,662 38,546 16,378 907 283 13,745 3,819 119,399 30-59 days past due 206 152 523 282 21 — 126 117 1,427 60-89 days past due 24 58 368 198 43 — 61 28 780 Greater than 89 days past due 29 140 396 158 44 — 149 134 1,050 27,318 19,012 39,833 17,016 1,015 283 14,081 4,098 122,656 Commercial real estate Pass 142,977 278,941 62,907 60,174 55,824 257,110 11,288 — 869,221 Special Mention 1,360 4,237 34,617 46,447 23,027 42,850 — — 152,538 Substandard — — 14,021 1,872 1,838 51,326 — — 69,057 Doubtful — — — — — — — — — 144,337 283,178 111,545 108,493 80,689 351,286 11,288 — 1,090,816 Commercial construction Pass 11,225 39,137 25,913 11,342 — — 22,099 — 109,716 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 11,225 39,137 25,913 11,342 — — 22,099 — 109,716 Commercial Pass 218,541 112,545 78,076 53,829 19,043 60,661 93,979 16,334 653,008 Special Mention 52 27,498 11,810 279 2,682 19,495 20,459 21 82,296 Substandard 427 214 4,273 1,824 5,318 3,188 5,845 1,945 23,034 Doubtful — — — — — — — — — 219,020 140,257 94,159 55,932 27,043 83,344 120,283 18,300 758,338 Total loans $ 956,609 $ 965,198 $ 427,762 $ 269,681 $ 251,518 $ 1,221,251 $ 978,579 $ 62,986 $ 5,133,584 Term Loans by Origination Year Revolving Loans (in thousands) 2020 2019 2018 2017 2016 Prior Revolving Converted to term loans Total December 31, 2020 Residential 1-4 family Current $ 567,282 $ 218,988 $ 111,243 $ 203,916 $ 184,888 $ 849,788 $ — $ — $ 2,136,105 30-59 days past due — — — — — 2,629 — — 2,629 60-89 days past due — 476 — — — 2,314 — — 2,790 Greater than 89 days past due — — — 353 — 2,362 — — 2,715 567,282 219,464 111,243 204,269 184,888 857,093 — — 2,144,239 Home equity line of credit Current — — — — — — 927,106 33,228 960,334 30-59 days past due — — — — — — 552 298 850 60-89 days past due — — — — — — 267 75 342 Greater than 89 days past due — — — — — — 1,463 589 2,052 — — — — — — 929,388 34,190 963,578 Residential land Current 8,357 3,427 1,598 939 22 272 — — 14,615 30-59 days past due — — — — — 702 — — 702 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — 300 — — 300 8,357 3,427 1,598 939 22 1,274 — — 15,617 Residential construction Current 6,919 3,093 385 625 — — — — 11,022 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 6,919 3,093 385 625 — — — — 11,022 Consumer Current 28,818 67,159 37,072 7,207 293 348 18,351 3,758 163,006 30-59 days past due 406 1,085 727 155 4 — 138 90 2,605 60-89 days past due 191 549 427 165 3 — 97 59 1,491 Greater than 89 days past due 131 532 409 119 7 — 262 171 1,631 29,546 69,325 38,635 7,646 307 348 18,848 4,078 168,733 Commercial real estate Pass 270,603 63,301 62,168 28,432 55,089 155,654 11,000 — 646,247 Special Mention 10,261 36,405 57,952 33,763 68,287 48,094 — — 254,762 Substandard — 14,720 4,181 1,892 4,423 57,640 — — 82,856 Doubtful — — — — — — — — — 280,864 114,426 124,301 64,087 127,799 261,388 11,000 — 983,865 Commercial construction Pass 14,480 31,965 26,990 — 5,562 — 22,517 — 101,514 Special Mention 1,910 — — 18,000 — — — — 19,910 Substandard — — — — — — — — — Doubtful — — — — — — — — — 16,390 31,965 26,990 18,000 5,562 — 22,517 — 121,424 Commercial Pass 392,088 117,791 75,533 29,211 12,520 35,770 74,520 11,004 748,437 Special Mention 37,836 23,087 1,920 6,990 30,264 13,250 31,362 11,218 155,927 Substandard 304 7,785 2,043 4,017 7,542 3,113 5,265 1,928 31,997 Doubtful — — — — — — 387 — 387 430,228 148,663 79,496 40,218 50,326 52,133 111,534 24,150 936,748 Total loans $ 1,339,586 $ 590,363 $ 382,648 $ 335,784 $ 368,904 $ 1,172,236 $ 1,093,287 $ 62,418 $ 5,345,226 Revolving loans converted to term loans during the nine months ended September 30, 2021 in the commercial, home equity line of credit and consumer portfolios were $1.6 million, $13.6 million and $1.9 million, respectively. Revolving loans converted to term loans during the nine months ended September 30, 2020 in the commercial, home equity line of credit and consumer portfolios were $13.8 million, $10.0 million and $2.0 million, respectively. The credit risk profile based on payment activity for loans was as follows: (in thousands) 30-59 60-89 Total Current Total Amortized cost> September 30, 2021 Real estate: Residential 1-4 family $ 2,224 $ 1,584 $ 8,552 $ 12,360 $ 2,159,713 $ 2,172,073 $ — Commercial real estate — — — — 1,090,816 1,090,816 — Home equity line of credit 255 208 1,455 1,918 849,498 851,416 — Residential land 97 — 300 397 19,002 19,399 — Commercial construction — — — — 109,716 109,716 — Residential construction — — — — 9,170 9,170 — Commercial 937 68 110 1,115 757,223 758,338 — Consumer 1,427 780 1,050 3,257 119,399 122,656 — Total loans $ 4,940 $ 2,640 $ 11,467 $ 19,047 $ 5,114,537 $ 5,133,584 $ — December 31, 2020 Real estate: Residential 1-4 family $ 2,629 $ 2,790 $ 2,715 $ 8,134 $ 2,136,105 $ 2,144,239 $ — Commercial real estate — 488 — 488 983,377 983,865 — Home equity line of credit 850 342 2,052 3,244 960,334 963,578 — Residential land 702 — 300 1,002 14,615 15,617 — Commercial construction — — — — 121,424 121,424 — Residential construction — — — — 11,022 11,022 — Commercial 608 300 132 1,040 935,708 936,748 — Consumer 2,605 1,491 1,631 5,727 163,006 168,733 — Total loans $ 7,394 $ 5,411 $ 6,830 $ 19,635 $ 5,325,591 $ 5,345,226 $ — The credit risk profile based on nonaccrual loans were as follows: (in thousands) September 30, 2021 December 31, 2020 With a Related ACL Without a Related ACL Total With a Related ACL Without a Related ACL Total Real estate: Residential 1-4 family $ 13,307 $ 7,997 $ 21,304 $ 8,991 $ 2,835 $ 11,826 Commercial real estate 15,062 1,251 16,313 15,847 2,875 18,722 Home equity line of credit 4,564 1,364 5,928 5,791 1,567 7,358 Residential land 97 300 397 108 300 408 Commercial construction — — — — — — Residential construction — — — — — — Commercial 1,573 2,080 3,653 1,819 3,328 5,147 Consumer 2,198 — 2,198 3,935 — 3,935 Total $ 36,801 $ 12,992 $ 49,793 $ 36,491 $ 10,905 $ 47,396 The credit risk profile based on loans whose terms have been modified and accruing interest were as follows: (in thousands) September 30, 2021 December 31, 2020 Real estate: Residential 1-4 family $ 7,545 $ 7,932 Commercial real estate 3,136 3,281 Home equity line of credit 6,986 8,148 Residential land 985 1,555 Commercial construction — — Residential construction — — Commercial 7,251 6,108 Consumer 52 54 Total troubled debt restructured loans accruing interest $ 25,955 $ 27,078 ASB did not recognize interest on nonaccrual loans for the three and nine months ended September 30, 2021 and 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 three and nine months ended September 30, 2021 and 2020 were as follows: Loans modified as a TDR Three months ended September 30, 2021 Nine months ended September 30, 2021 (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 $ 442 $ 81 16 $ 10,363 $ 309 Commercial real estate — — — — — — Home equity line of credit — — — — — — Residential land 1 247 11 3 802 37 Commercial construction — — — — — — Residential construction — — — — — — Commercial 1 2,386 212 7 2,678 242 Consumer — — — — — — 3 $ 3,075 $ 304 26 $ 13,843 $ 588 Three months ended September 30, 2020 Nine months ended September 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 $ 146 $ 7 Commercial real estate — — — 2 16,149 4,019 Home equity line of credit — — — 2 22 1 Residential land — — — 2 228 15 Commercial construction — — — — — — Residential construction — — — — — — Commercial 2 52 45 5 207 180 Consumer — — — — — — 2 $ 52 $ 45 12 $ 16,752 $ 4,222 1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included. There were no loans modified in TDRs that experienced a payment default of 90 days or more during the third quarter and first nine months of 2021 and 2020. 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 September 30, 2021 and December 31, 2020. 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: Amortized cost (in thousands) September 30, 2021 December 31, 2020 Collateral type Real estate: Residential 1-4 family $ 5,268 $ 2,541 Residential real estate property Commercial real estate 1,251 2,875 Commercial real estate property Home equity line of credit 1,364 1,567 Residential real estate property Residential land 300 300 Residential real estate property Total real estate 8,183 7,283 Commercial 780 934 Business assets Total $ 8,963 $ 8,217 ASB had $3.4 million and $3.8 million of mortgage loans collateralized by residential real estate property that were in the process of foreclosure at September 30, 2021 and December 31, 2020, respectively. Mortgage servicing rights (MSRs) . In its mortgage banking business, ASB sells residential mortgage loans to government-sponsored entities and other parties, who may issue securities backed by pools of such loans. ASB retains no beneficial interests in these loans other than the servicing rights of certain loans sold. ASB received proceeds from the sale of residential mortgages of $38.3 million and $128.0 million for the three months ended September 30, 2021 and 2020, respectively, $304.8 million and $387.2 million for the nine months ended September 30, 2021 and 2020, respectively, and recognized gains on such sales of $1.3 million and $7.7 million for the three months ended September 30, 2021 and 2020, respectively, $7.5 million and $15.9 million for the nine months ended September 30, 2021 and 2020, respectively. There were no repurchased mortgage loans for the three and nine months ended September 30, 2021 and 2020. The repurchase reserve, which represents ASB’s loss estimate related to mortgage loan repurchases, was $0.1 million as of September 30, 2021 and 2020. Mortgage servicing fees, a component of other income, net, were $1.0 million and $0.9 million for the three months ended September 30, 2021 and 2020, respectively, and were $2.8 million and $2.5 million for the nine months ended September 30, 2021 and 2020, respectively. Changes in the carrying value of MSRs were as follows: (in thousands) Gross carrying amount 1 Accumulated amortization Valuation allowance Net September 30, 2021 $ 22,182 $ (11,910) $ — $ 10,272 December 31, 2020 22,950 (12,670) (260) 10,020 1 Reflects impact of loans paid in full Changes related to MSRs were as follows: Three months ended September 30, Nine months ended September 30 (in thousands) 2021 2020 2021 2020 Mortgage servicing rights Beginning balance $ 10,754 $ 9,911 $ 10,280 $ 9,101 Amount capitalized 315 1,119 2,885 3,481 Amortization (797) (1,095) (2,893) (2,647) Other-than-temporary impairment — — — — Carrying amount before valuation allowance 10,272 9,935 10,272 9,935 Valuation allowance for mortgage servicing rights Beginning balance — 264 260 — Provision — 118 (260) 382 Other-than-temporary impairment — — — — Ending balance — 382 — 382 Net carrying value of mortgage servicing rights $ 10,272 $ 9,553 $ 10,272 $ 9,553 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 carryi |
Credit agreements and changes i
Credit agreements and changes in long-term debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Credit agreements and changes in long-term debt | Credit agreements and changes in long-term debt On May 14, 2021, HEI and Hawaiian Electric (each a Company, and collectively the Companies) each entered into a separate agreement with a syndicate of nine financial institutions (the HEI Facility and Hawaiian Electric Facility, respectively, and together, the Amended Facilities) to amend and restate their respective previously existing revolving unsecured credit agreements. The HEI Facility was increased to $175 million from $150 million and its term was extended to May 14, 2026. The $200 million Hawaiian Electric Facility has an initial term that expires on May 13, 2022, but its term will extend to May 14, 2026 upon approval by the PUC during the initial term, which approval has been requested. In addition to extending the term, Hawaiian Electric also requested PUC approval to exercise its options of two one-year extensions of the commitment termination date and to increase its aggregate revolving commitment amount from $200 million to $275 million, should there be a need. None of the facilities are collateralized. As of September 30, 2021 and December 31, 2020, no amounts were outstanding under the Credit Facilities. 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. Under the Amended Facilities, draws would generally bear interest, based on each Company’s respective current long-term credit ratings, at the “Adjusted LIBO Rate,” as defined in the Amended Facilities, plus 137.5 and 125.0 basis points for HEI and Hawaiian Electric, respectively, and incur annual fees on undrawn commitments, excluding swingline borrowings, of 20.0 and 17.5 basis points for HEI and Hawaiian Electric, respectively. The Amended Facilities also include provisions to accommodate a transition from the London Interbank Offered Rate (LIBOR) to an alternative reference rate, based on the secured overnight financing rate administered by the Federal Reserve Bank of New York, upon the phase out of LIBOR as a reference rate. Additionally, the Amended Facilities contain provisions for pricing adjustments in the event of a long-term ratings change based on the respective Facility’s ratings-based pricing grid, which includes the ratings by Fitch Ratings, Inc. (Fitch), Moody’s Investors Service (Moody’s) and Standard & Poor’s (S&P). The Amended Facilities do not contain clauses that would affect access to the Amended Facilities by reason of a ratings downgrade, nor do they have broad “material adverse change” clauses. In addition, the Amended Facilities contain provisions for potential annual pricing adjustments to the Eurodollar or Alternate Base Rate margin on draws and fees on undrawn commitments of up to +/-5 basis points and +/-1 basis point, respectively, based on performance against certain sustainability-linked metrics. The sustainability-linked metrics include achievement of renewable portfolio standards in excess of statutory requirements and increasing cumulative penetration of installed MWs of photovoltaic systems on residential rooftops. The Amended Facilities also include updated terms and conditions customary for facilities of this type and contain customary conditions that must be met in order to draw on them, including compliance with covenants (such as covenants preventing HEI’s and Hawaiian Electric’s respective subsidiaries from entering into agreements that restrict the ability of such subsidiaries to pay dividends to, or to repay borrowings from, HEI or Hawaiian Electric, as applicable; and a covenant in Hawaiian Electric’s facility restricting Hawaiian Electric’s ability, as well as the ability of any of its subsidiaries, to guarantee additional indebtedness of the subsidiaries if such additional debt would cause the subsidiary’s “Consolidated Subsidiary Funded Debt to Capitalization Ratio” (as defined in the Hawaiian Electric Facility) to exceed 65%). Under the HEI Facility, it is an event of default if HEI fails to maintain an unconsolidated “Capitalization Ratio” (funded debt) (as defined in the HEI Facility) of 50% or less or if HEI no longer owns Hawaiian Electric or ASB. Under the Hawaiian Electric Facility, it is an event of default if Hawaiian Electric fails to maintain a “Consolidated Capitalization Ratio” (equity) (as defined in the Hawaiian Electric Facility) of at least 35%, or if Hawaiian Electric is no longer owned by HEI. Hawaiian Electric had a $75 million 364-day revolving credit agreement, under which no amounts had been drawn. On April 19, 2021, the revolving credit agreement terminated and was not renewed. HEI Private Placement. On September 29, 2021, HEI entered into a note purchase agreement (HEI NPA) under which HEI has authorized the issue and sale of $125 million of unsecured senior notes to be drawn in two tranches at a future date. As defined in the note purchase agreement, at its option, HEI may draw the notes on a delayed basis. The following table displays the required draw date of the HEI notes. HEI Series 2021A HEI Series 2021B HEI Series 2021C HEI Series 2022A HEI Series 2022B Aggregate principal amount $30 million $25 million $20 million $30 million $20 million Fixed coupon interest rate 2.48% 2.78% 3.74% 2.98% 3.94% Maturity date 12/29/2028 12/29/2031 12/29/2051 11/15/2032 11/15/2052 Final draw date 12/29/2021 12/29/2021 12/29/2021 11/15/2022 11/15/2022 Proceeds from the notes are expected to be used for general corporate purposes, including investing in the Utilities’ equity to maintain a Utilities’ equity capitalization ratio of approximately 58%, refinancing a portion of $150 million of maturing debt in November 2022, and to repay a portion of HEI commercial paper outstanding. Once drawn, interest on the notes is paid semiannually on June 15th and December 15th. The HEI note purchase agreements contain certain restrictive financial covenants that are substantially the same as the financial covenants contained in HEI’s senior credit facility, as amended. The HEI notes may be prepaid in whole or in part at any time at the prepayment price of the principal amount, together with interest accrued to the date of prepayment plus a “Make-Whole Amount,” as defined in the agreements. Mauo Term Debt. On September 3, 2021, Mauo entered into a $24 million credit agreement under which it has drawn an aggregate of $13 million under a series of notes. The proceeds were used to refinance a portion of a construction loan related to five solar-battery projects. The notes are non-recourse to Pacific Current and HEI, bear interest at LIBOR plus 1.7%, mature in September 2034, and are collateralized by three solar-battery projects. In connection with the non-recourse notes drawn under the credit agreement, Mauo entered into interest rate swaps that effectively convert the rate on the floating rate notes to a fixed rate of 4.9%. |
Shareholders' equity
Shareholders' equity | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020 $ 19,986 $ (3,363) $ (17,887) $ (1,264) $ (2,919) Current period other comprehensive income (loss) (40,308) 1,009 450 (38,849) 175 Balance, September 30, 2021 $ (20,322) $ (2,354) $ (17,437) $ (40,113) $ (2,744) Balance, December 31, 2019 $ 2,481 $ (1,613) $ (20,907) $ (20,039) $ (1,279) Current period other comprehensive income (loss) 19,767 (2,129) 1,682 19,320 99 Balance, September 30, 2020 $ 22,248 $ (3,742) $ (19,225) $ (719) $ (1,180) Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Affected line item in the Three months ended September 30 Nine months ended September 30 2021 2020 2021 2020 (in thousands) HEI consolidated Net realized gains on securities included in net income $ — $ — $ (387) $ (1,638) Gain on sale of investment securities, net Net realized losses on derivatives qualifying as cash flow hedges 9 — 9 — Interest expense Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 2,853 6,324 14,871 17,720 See Note 8 for additional details Impact of D&Os of the PUC included in regulatory assets (2,799) (5,721) (14,421) (16,038) See Note 8 for additional details Total reclassifications $ 63 $ 603 $ 72 $ 44 Hawaiian Electric consolidated Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost $ 2,905 $ 5,769 $ 14,596 $ 16,137 See Note 8 for additional details Impact of D&Os of the PUC included in regulatory assets (2,799) (5,721) (14,421) (16,038) See Note 8 for additional details Total reclassifications $ 106 $ 48 $ 175 $ 99 |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 Nine months ended September 30, 2021 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 228,878 $ — $ — $ 228,878 $ 606,435 $ — $ — $ 606,435 Electric energy sales - commercial 217,468 — — 217,468 578,036 — — 578,036 Electric energy sales - large light and power 229,129 — — 229,129 607,480 — — 607,480 Electric energy sales - other 2,779 — — 2,779 7,470 — — 7,470 Bank fees — 11,186 — 11,186 — 34,133 — 34,133 Other sales — — 1,178 1,178 — — 3,191 3,191 Total revenues from contracts with customers 678,254 11,186 1,178 690,618 1,799,421 34,133 3,191 1,836,745 Revenues from other sources Regulatory revenue $ (5,717) $ — $ — $ (5,717) $ 25,566 $ — $ — $ 25,566 Bank interest and dividend income — 61,441 — 61,441 — 182,127 — 182,127 Other bank noninterest income — 3,581 — 3,581 — 14,339 — 14,339 Other 6,962 — 19 6,981 21,255 — 75 21,330 Total revenues from other sources 1,245 65,022 19 66,286 46,821 196,466 75 243,362 Total revenues $ 679,499 $ 76,208 $ 1,197 $ 756,904 $ 1,846,242 $ 230,599 $ 3,266 $ 2,080,107 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 11,186 $ — $ 11,186 $ — $ 34,133 $ — $ 34,133 Services/goods transferred over time 678,254 — 1,178 679,432 1,799,421 — 3,191 1,802,612 Total revenues from contracts with customers $ 678,254 $ 11,186 $ 1,178 $ 690,618 $ 1,799,421 $ 34,133 $ 3,191 $ 1,836,745 Three months ended September 30, 2020 Nine months ended September 30, 2020 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 191,321 $ — $ — $ 191,321 $ 569,177 $ — $ — $ 569,177 Electric energy sales - commercial 171,156 — — 171,156 528,135 — — 528,135 Electric energy sales - large light and power 176,200 — — 176,200 568,887 — — 568,887 Electric energy sales - other 1,935 — — 1,935 7,172 — — 7,172 Bank fees — 9,589 — 9,589 — 28,356 — 28,356 Other sales — — 211 211 — — 240 240 Total revenues from contracts with customers 540,612 9,589 211 550,412 1,673,371 28,356 240 1,701,967 Revenues from other sources Regulatory revenue 15,457 — — 15,457 2,979 — — 2,979 Bank interest and dividend income — 59,640 — 59,640 — 184,444 — 184,444 Other bank noninterest income — 9,415 — 9,415 — 20,296 — 20,296 Other 6,499 — 4 6,503 17,875 — (3) 17,872 Total revenues from other sources 21,956 69,055 4 91,015 20,854 204,740 (3) 225,591 Total revenues $ 562,568 $ 78,644 $ 215 $ 641,427 $ 1,694,225 $ 233,096 $ 237 $ 1,927,558 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 9,589 $ — $ 9,589 $ — $ 28,356 $ — $ 28,356 Services/goods transferred over time 540,612 — 211 540,823 1,673,371 — 240 1,673,611 Total revenues from contracts with customers $ 540,612 $ 9,589 $ 211 $ 550,412 $ 1,673,371 $ 28,356 $ 240 $ 1,701,967 There are no material contract assets or liabilities associated with revenues from contracts with customers existing at December 31, 2020 or as of September 30, 2021. 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 September 30, 2021, 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 | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement benefits | Retirement benefits Defined benefit pension and other postretirement benefit plans information. For the first nine months of 2021, the Company contributed $39 million ($38 million by the Utilities) to its pension and other postretirement benefit plans, compared to $53 million ($52 million by the Utilities) in the first nine months of 2020. The Company’s current estimate of total contributions to its pension and other postretirement benefit plans in 2021 is $52 million ($51 million by the Utilities, $1 million by HEI and nil by ASB), compared to $71 million ($70 million by the Utilities, $1 million by HEI and nil by ASB) in 2020. In addition, the Company expects to pay directly $2 million ($1 million by the Utilities) of benefits in 2021, compared to $2 million ($1 million by the Utilities) paid in 2020. 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 September 30 Nine months ended September 30 Pension benefits Other benefits Pension benefits Other benefits 2021 2020 2021 2020 2021 2020 2021 2020 (in thousands) HEI consolidated Service cost $ 20,102 $ 18,341 $ 711 $ 641 $ 61,031 $ 55,066 $ 2,121 $ 1,903 Interest cost 18,896 20,660 1,459 1,842 56,497 60,987 4,597 5,553 Expected return on plan assets (33,022) (28,422) (3,252) (3,023) (99,157) (85,353) (9,717) (9,100) Amortization of net prior period (gain)/cost — 2 (383) (474) — 7 (1,150) (1,355) Amortization of net actuarial (gain)/losses 1 10,112 8,944 (140) 53 20,099 25,059 158 154 Net periodic pension/benefit cost (return) 16,088 19,525 (1,605) (961) 38,470 55,766 (3,991) (2,845) Impact of PUC D&Os 4,292 4,976 1,483 835 20,972 17,499 3,629 2,389 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 20,380 $ 24,501 $ (122) $ (126) $ 59,442 $ 73,265 $ (362) $ (456) Hawaiian Electric consolidated Service cost $ 19,610 $ 17,921 $ 704 $ 635 $ 59,597 $ 53,703 $ 2,101 $ 1,886 Interest cost 17,614 19,183 1,398 1,764 52,676 56,613 4,406 5,327 Expected return on plan assets (31,318) (26,815) (3,202) (2,986) (94,053) (80,527) (9,566) (8,966) Amortization of net prior period (gain)/cost — 1 (383) (474) — 6 (1,148) (1,353) Amortization of net actuarial (gain)/losses 1 9,880 8,188 (138) 53 20,651 22,925 155 155 Net periodic pension/benefit cost (return) 15,786 18,478 (1,621) (1,008) 38,871 52,720 (4,052) (2,951) Impact of PUC D&Os 4,292 4,976 1,483 835 20,972 17,499 3,629 2,389 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 20,078 $ 23,454 $ (138) $ (173) $ 59,843 $ 70,219 $ (423) $ (562) 1 Nine months ended September 30, 2021 amounts include the one-time cumulative impact of the change in accounting principle for the plans’ fixed income securities from the calculated market-related value method to the fair value method, which was recorded in the first quarter of 2021. HEI consolidated recorded retirement benefits expense of $35 million ($35 million by the Utilities) in the first nine months of 2021 and $46 million ($43 million by the Utilities) in the first nine months of 2020 and charged the remaining net periodic benefit cost primarily to electric utility plant. Effective January 1, 2021, the Company adopted a change in accounting principle for the plans’ fixed income securities from the calculated market-related value method to the fair value method in the calculation of the expected return on plan assets component of NPPC and NPBC. The remaining plan assets continue to use the calculated market-related value methodology. The Company considers the fair value approach to be preferable for its fixed-income securities portfolio because it results in a current reflection of the changes in the value of plan assets in a way similar to the obligations it is intended to hedge. The Company evaluated the effect of this change in accounting principle and deemed it to be immaterial to the historical financial statements of the Company and Hawaiian Electric and, therefore, did not account for the change retrospectively and recorded the cumulative effects from the change in accounting principle in earnings for non-Utility businesses in the first quarter of 2021. Amounts related to the Utilities were reflected as adjustments to regulatory assets as appropriate, consistent with the expected regulatory treatment as described in the following paragraph. 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 nine months of 2021 and 2020, 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 $4.9 million and $5.5 million, respectively, and cash contributions were $4.8 million and $6.0 million, respectively. For the first nine months of 2021 and 2020, the Utilities’ expenses and cash contributions for its defined contribution plan under the HEIRSP were $2.3 million and $2.1 million, respectively. |
Share-based compensation
Share-based compensation | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021, approximately 2.9 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 0.8 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 September 30, 2021, there were 244,843 shares remaining available for future issuance under the 2011 Director Plan. Share-based compensation expense and the related income tax benefit were as follows: Three months ended September 30 Nine months ended September 30 (in millions) 2021 2020 2021 2020 HEI consolidated Share-based compensation expense 1 $ 1.3 $ 1.4 $ 6.7 $ 5.4 Income tax benefit 0.1 0.2 1.0 0.9 Hawaiian Electric consolidated Share-based compensation expense 1 0.1 — 2.1 1.2 Income tax benefit — — 0.4 0.3 1 For the three and nine months ended September 30, 2021 and 2020, 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 September 30 Nine months ended September 30 (dollars in millions) 2021 2020 2021 2020 Shares granted — — 29,320 36,100 Fair value $ — $ — $ 1.2 $ 1.3 Income tax benefit — — 0.3 0.3 The number of shares issued to each nonemployee director of HEI, Hawaiian Electric and ASB is determined based on the closing price of HEI common stock on the grant date. Restricted stock units. Information about HEI’s grants of restricted stock units was as follows: Three months ended September 30 Nine months ended September 30 2021 2020 2021 2020 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 229,775 $ 38.02 204,357 $ 40.65 193,939 $ 40.89 207,641 $ 35.36 Granted 1,432 45.09 — — 133,924 34.49 78,595 47.99 Vested (343) 37.83 — — (79,623) 38.51 (77,719) 34.19 Forfeited (1,074) 38.52 — — (18,450) 39.92 (4,160) 35.81 Outstanding, end of period 229,790 $ 38.06 204,357 $ 40.65 229,790 $ 38.06 204,357 $ 40.65 Total weighted-average grant-date fair value of shares granted (in millions) $ 0.1 $ — $ 4.6 $ 3.8 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For the nine months ended September 30, 2021 and 2020, total restricted stock units and related dividends that vested had a fair value of $3.0 million and $4.2 million, respectively, and the related tax benefits were $0.6 million and $0.7 million, respectively. As of September 30, 2021, there was $6.4 million of total unrecognized compensation cost related to the nonvested restricted stock units. The cost is expected to be recognized over a weighted-average period of 2.2 years. Long-term incentive plan payable in stock. The 2019-2021, 2020-2022 and 2021-2023 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-year period. The other performance condition goals relate to EPS growth, return on average common equity (ROACE), renewable portfolio standards, Hawaiian Electric’s net income growth, ASB’s efficiency ratio and strategic initiatives and Pacific Current’s EBITDA growth and return on average invested capital. LTIP linked to TSR . Information about HEI’s LTIP grants linked to TSR was as follows: Three months ended September 30 Nine months ended September 30 2021 2020 2021 2020 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 91,159 $ 42.87 90,616 $ 42.08 89,222 $ 42.10 96,402 $ 39.62 Granted 281 41.12 — — 46,024 41.12 24,630 48.62 Vested (issued or unissued and cancelled) — — — — (32,355) 38.20 (29,409) 39.51 Forfeited (466) 42.49 — — (11,917) 43.07 (1,007) 41.72 Outstanding, end of period 90,974 $ 42.86 90,616 $ 42.08 90,974 $ 42.86 90,616 $ 42.08 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ — $ 1.9 $ 1.2 (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 of HEI and its peers over the remaining three-year performance period. The expected stock volatility assumptions for HEI and its peer group were based on the three-year historic stock volatility. A dividend assumption is not required for the Monte Carlo simulation because the grant payout includes dividend equivalents and projected returns include the value of reinvested dividends. 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: 2021 2020 Risk-free interest rate 0.19 % 1.39 % Expected life in years 3 3 Expected volatility 29.9 % 13.1 % Range of expected volatility for Peer Group 25.6% to 102.9% 13.6% to 95.4% Grant date fair value (per share) $41.12 $48.62 For the nine months ended September 30, 2021 and 2020, total vested LTIP awards linked to TSR and related dividends had a fair value of $0.8 million and $2.6 million, respectively, and the related tax benefits were $0.2 million and $0.4 million, respectively. As of September 30, 2021, there was $1.8 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 September 30 Nine months ended September 30 2021 2020 2021 2020 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 316,005 $ 38.38 297,523 $ 40.37 220,715 $ 41.03 403,768 $ 35.15 Granted 1,125 41.12 — — 184,102 34.37 98,522 48.10 Vested — — — — (43,155) 34.12 (135,804) 33.48 Increase above target (cancelled) (22,354) 37.81 (21,807) 34.11 (21,077) 38.18 (86,739) 34.12 Forfeited (1,865) 36.77 — — (47,674) 38.74 (4,031) 39.67 Outstanding, end of period 292,911 $ 38.45 275,716 $ 40.86 292,911 $ 38.45 275,716 $ 40.86 Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) $ — $ — $ 6.3 $ 4.7 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For the nine months ended September 30, 2021 and 2020, total vested LTIP awards linked to other performance conditions and related dividends had a fair value of $1.7 million and $7.6 million, respectively, and the related tax benefits were $0.4 million and $1.2 million, respectively. As of September 30, 2021, there was $5.7 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 | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Company’s and the Utilities’ effective tax rates (combined federal and state income tax rates) were 20% and 19%, respectively, for the nine months ended September 30, 2021. 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, the non-taxability of the bank-owned life insurance income and federal research and development tax credit claims. The Company’s and the Utilities’ effective tax rates were 17% and 19%, respectively, for the nine months ended September 30, 2020. In August 2020, the Internal Revenue Service notified the Company that its 2017 and 2018 income tax returns would be examined. The Company was previously audited every year through 2011, at which time the IRS changed their internal policies regarding audit frequency. The Company has received several initial requests for general tax return information and has responded or is in the process of responding to such requests. |
Cash flows
Cash flows | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash flows | Cash flows Nine months ended September 30 2021 2020 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates, net of amounts capitalized $ 61 $ 64 Income taxes paid (including refundable credits) 34 23 Hawaiian Electric consolidated Interest paid to non-affiliates 43 39 Income taxes paid (including refundable credits) 20 29 Supplemental disclosures of noncash activities HEI consolidated Property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 5 9 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 30 32 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) 44 22 Common stock issued (gross) for director and executive/management compensation (financing) 1 7 16 Obligations to fund low income housing investments (investing) 9 10 Loans transferred from held for investment to held for sale (investing) 62 — Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 5 9 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 27 28 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) 44 16 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 | 9 Months Ended |
Sep. 30, 2021 | |
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. Collateral dependent loans . Collateral dependent loans have been adjusted to fair value. When a loan is identified as collateral dependent, the Company measures the impairment using the current fair value of the collateral, less selling costs. Depending on the characteristics of a loan, the fair value of collateral is generally estimated by obtaining external appraisals, but in some cases, the value of the collateral may be estimated as having little or no 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. If it is determined that the value of the collateral dependent loan is less than its recorded investment, the Company recognizes this impairment and adjusts the carrying value of the loan to fair value through the allowance for credit losses. 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. ASB includes MSRs within Level 3 of the valuation hierarchy. Time deposits . The fair value of fixed-maturity certificates of deposit was estimated by discounting the future cash flows using the rates currently offered for 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 best efforts and mandatory delivery loan sale commitments are determined using quoted prices in the market place that are observable and are classified as Level 2 measurements. The following table presents the carrying or notional amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments. Estimated fair value (in thousands) Carrying or notional amount Quoted prices in Significant Significant Total September 30, 2021 Financial assets HEI consolidated Available-for-sale investment securities $ 2,580,830 $ — $ 2,565,403 $ 15,427 $ 2,580,830 Held-to-maturity investment securities 491,871 — 484,654 — 484,654 Loans, net 5,100,178 — 54,537 5,167,221 5,221,758 Mortgage servicing rights 10,272 — — 13,712 13,712 Derivative assets 53,789 121 494 — 615 Financial liabilities HEI consolidated Deposit liabilities 444,897 — 445,401 — 445,401 Short-term borrowings—other than bank 92,246 — 92,246 — 92,246 Other bank borrowings 129,305 — 129,304 — 129,304 Long-term debt, net—other than bank 2,244,795 — 2,588,972 — 2,588,972 Derivative liabilities 27,250 12 3,456 — 3,468 Hawaiian Electric consolidated Short-term borrowings — — — — — Long-term debt, net 1,676,223 — 1,987,933 — 1,987,933 December 31, 2020 Financial assets HEI consolidated Available-for-sale investment securities $ 1,970,417 $ — $ 1,943,232 $ 27,185 $ 1,970,417 Held-to-maturity investment securities 226,947 — 229,963 — 229,963 Loans, net 5,260,917 — 28,354 5,410,976 5,439,330 Mortgage servicing rights 10,020 — — 10,705 10,705 Derivative assets 120,980 — 4,536 — 4,536 Financial liabilities HEI consolidated Deposit liabilities 548,830 — 552,800 — 552,800 Short-term borrowings—other than bank 129,379 — 129,379 — 129,379 Other bank borrowings 89,670 — 89,669 — 89,669 Long-term debt, net—other than bank 2,119,129 — 2,487,790 — 2,487,790 Derivative liabilities 137,500 500 4,530 — 5,030 Hawaiian Electric consolidated Short-term borrowings 49,979 — 49,979 — 49,979 Long-term debt, net 1,561,302 — 1,890,490 — 1,890,490 Fair value measurements on a recurring basis. Assets and liabilities measured at fair value on a recurring basis were as follows: September 30, 2021 December 31, 2020 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 $ — $ 2,441,683 $ — $ — $ 1,849,559 $ — U.S. Treasury and federal agency obligations — 92,075 — — 62,322 — Corporate bonds — 31,645 — — 31,351 — Mortgage revenue bonds — — 15,427 — — 27,185 $ — $ 2,565,403 $ 15,427 $ — $ 1,943,232 $ 27,185 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 308 $ — $ — $ 4,536 $ — Forward commitments (bank segment) 1 121 — — — — — Interest rate swap (Other segment) 2 — 186 — — — — $ 121 $ 494 $ — $ — $ 4,536 $ — Derivative liabilities Forward commitments (bank segment) 1 $ 12 $ — $ — $ 500 $ — $ — Interest rate swap (Other segment) 2 — 3,456 — — 4,530 — $ 12 $ 3,456 $ — $ 500 $ 4,530 $ — 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 assets and 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 September 30 Nine months ended September 30 Mortgage revenue bonds 2021 2020 2021 2020 (in thousands) Beginning balance $ 15,427 $ 28,827 $ 27,185 $ 28,597 Principal payments received — (1,642) (11,758) (1,642) Purchases — — — 230 Unrealized gain (loss) included in other comprehensive income — — — — Ending balance $ 15,427 $ 27,185 $ 15,427 $ 27,185 Mortgage revenue bonds are 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 September 30, 2021, the weighted average discount rate was 2.06%, 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 September 30, 2021 Loans $ 125 $ — $ — $ 125 December 31, 2020 Loans 387 — — 387 Mortgage servicing rights 3,001 — — 3,001 For the nine months ended September 30, 2021 and 2020, 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 September 30, 2021 Residential $ 125 Fair value of property or collateral Appraised value less selling cost N/A (2) N/A (2) December 31, 2020 Commercial loan $ 387 Fair value of collateral Appraised value less selling cost N/A (2) N/A (2) Mortgage servicing rights 3,001 Discounted cash flow Prepayment speed 15% - 22% 22 % Discount rate 9.3 % (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) | 9 Months Ended |
Sep. 30, 2021 | |
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. |
Recent accounting pronouncements | Recent accounting pronouncements. Income Taxes . In December 2019, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which removes specific exceptions to the general principles in Topic 740, improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP under certain situations. ASU No. 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company adopted the ASU as of January 1, 2021 with no material impact on its consolidated financial statements and related disclosures. Leases . On July 19, 2021 FASB issued ASU No. 2021-05, “Leases (Topic 842): Lessors–Certain Leases with Variable Lease Payments.” The ASU allows lessors to treat sales-type leases with variable payments to be classified as operating leases if the sales-type lease treatment under Topic 842 would result in a selling loss at lease commencement (day-one loss). The Company early adopted ASU No. 2021-05 as of September 30, 2021 retrospectively to leases that commenced on or after the adoption of ASU No. 2016-02, “Leases (Topic 842)”. The adoption of ASU No. 2021-05 did not have a material impact on the Company’s consolidated financial statements and related disclosures. |
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. |
Fair value measurements | 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. Collateral dependent loans . Collateral dependent loans have been adjusted to fair value. When a loan is identified as collateral dependent, the Company measures the impairment using the current fair value of the collateral, less selling costs. Depending on the characteristics of a loan, the fair value of collateral is generally estimated by obtaining external appraisals, but in some cases, the value of the collateral may be estimated as having little or no 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. If it is determined that the value of the collateral dependent loan is less than its recorded investment, the Company recognizes this impairment and adjusts the carrying value of the loan to fair value through the allowance for credit losses. 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. ASB includes MSRs within Level 3 of the valuation hierarchy. Time deposits . The fair value of fixed-maturity certificates of deposit was estimated by discounting the future cash flows using the rates currently offered for 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 |
Segment financial information (
Segment financial information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment financial information | (in thousands) Electric utility Bank Other Total Three months ended September 30, 2021 Revenues from external customers $ 679,482 $ 76,208 $ 1,214 $ 756,904 Intersegment revenues (eliminations) 17 — (17) — Revenues $ 679,499 $ 76,208 $ 1,197 $ 756,904 Income (loss) before income taxes $ 61,175 $ 25,241 $ (8,265) $ 78,151 Income taxes (benefit) 10,335 5,976 (2,046) 14,265 Net income (loss) 50,840 19,265 (6,219) 63,886 Preferred stock dividends of subsidiaries 498 — (27) 471 Net income (loss) for common stock $ 50,342 $ 19,265 $ (6,192) $ 63,415 Nine months ended September 30, 2021 Revenues from external customers $ 1,846,206 $ 230,599 $ 3,302 $ 2,080,107 Intersegment revenues (eliminations) 36 — (36) — Revenues $ 1,846,242 $ 230,599 $ 3,266 $ 2,080,107 Income (loss) before income taxes $ 170,163 $ 102,335 $ (31,207) $ 241,291 Income taxes (benefit) 33,066 23,230 (8,067) 48,229 Net income (loss) 137,097 79,105 (23,140) 193,062 Preferred stock dividends of subsidiaries 1,496 — (79) 1,417 Net income (loss) for common stock $ 135,601 $ 79,105 $ (23,061) $ 191,645 Total assets (at September 30, 2021) $ 6,602,908 $ 9,010,419 $ 146,836 $ 15,760,163 Three months ended September 30, 2020 Revenues from external customers $ 562,559 $ 78,644 $ 224 $ 641,427 Intersegment revenues (eliminations) 9 — (9) — Revenues $ 562,568 $ 78,644 $ 215 $ 641,427 Income (loss) before income taxes $ 74,398 $ 15,027 $ (9,904) $ 79,521 Income taxes (benefit) 13,835 2,877 (2,694) 14,018 Net income (loss) 60,563 12,150 (7,210) 65,503 Preferred stock dividends of subsidiaries 498 — (27) 471 Net income (loss) for common stock $ 60,065 $ 12,150 $ (7,183) $ 65,032 Nine months ended September 30, 2020 Revenues from external customers $ 1,694,195 $ 233,096 $ 267 $ 1,927,558 Intersegment revenues (eliminations) 30 — (30) — Revenues $ 1,694,225 $ 233,096 $ 237 $ 1,927,558 Income (loss) before income taxes $ 157,111 $ 51,330 $ (28,994) $ 179,447 Income taxes (benefit) 29,316 9,405 (8,030) 30,691 Net income (loss) 127,795 41,925 (20,964) 148,756 Preferred stock dividends of subsidiaries 1,496 — (79) 1,417 Net income (loss) for common stock $ 126,299 $ 41,925 $ (20,885) $ 147,339 Total assets (at December 31, 2020) $ 6,457,373 $ 8,396,533 $ 150,101 $ 15,004,007 |
Electric utility segment (Table
Electric utility segment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Electric Utility Subsidiary [Abstract] | |
Schedule of purchases from all IPPs | Purchases from all IPPs were as follows: Three months ended September 30 Nine months ended September 30 (in millions) 2021 2020 2021 2020 Kalaeloa $ 56 $ 39 $ 142 $ 111 AES Hawaii 32 33 98 96 HPOWER 20 18 51 52 Hamakua Energy 15 12 38 36 Puna Geothermal Venture 9 — 20 — Wind IPPs 38 30 95 83 Solar IPPs 12 17 40 45 Other IPPs 1 4 — 7 3 Total IPPs $ 186 $ 149 $ 491 $ 426 |
Schedule of net annual incremental amounts proposed to be collected (refunded) | The filing reflected ARA revenues for 2022 to be collected from January 1 through December 31, 2022, as follows: (in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Total 2022 ARA revenues $ 19.8 $ 4.9 $ 4.8 $ 29.5 Management Audit savings commitment (4.6) (1.0) (1.0) (6.6) Net 2022 ARA revenues $ 15.2 $ 3.9 $ 3.8 $ 22.9 The proposed net incremental amounts between the 2021 spring and fall revenue reports are as follows. The amounts are to be collected (refunded) from January 1 through December 31, 2022 under the RBA rate tariffs, which was proposed in the 2021 fall revenue report filing and is subject to PUC approval. (in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Total Incremental RAM revenues and ARA revenues $ 41.7 $ 8.9 $ 10.9 $ 61.5 Incremental accrued RBA balance through September 30, 2021 (and associated revenue taxes) 21.9 2.5 (0.1) 24.3 Incremental Performance Incentive Mechanisms (net) — — 0.1 0.1 Incremental MPIR/EPRM Revenue Adjustment 9.8 0.3 0.3 10.4 Net incremental amount to be collected under the RBA rate tariffs $ 73.4 $ 11.7 $ 11.1 $ 96.2 |
Schedule of condensed consolidating statements of income (loss) | Condensed Consolidating Statement of Income Three months ended September 30, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 478,046 100,313 101,141 — (1) $ 679,499 Expenses Fuel oil 126,909 21,104 32,669 — — 180,682 Purchased power 136,688 31,159 17,912 — — 185,759 Other operation and maintenance 75,191 19,964 21,313 — — 116,468 Depreciation 38,912 10,050 8,424 — — 57,386 Taxes, other than income taxes 45,239 9,333 9,440 — — 64,012 Total expenses 422,939 91,610 89,758 — — 604,307 Operating income 55,107 8,703 11,383 — (1) 75,192 Allowance for equity funds used during construction 1,999 131 297 — — 2,427 Equity in earnings of subsidiaries 12,028 — — — (12,028) — Retirement defined benefits expense—other than service costs 741 166 (30) — — 877 Interest expense and other charges, net (12,943) (2,590) (2,616) — 1 (18,148) Allowance for borrowed funds used during construction 676 44 107 — — 827 Income before income taxes 57,608 6,454 9,141 — (12,028) 61,175 Income taxes 6,996 1,433 1,906 — — 10,335 Net income 50,612 5,021 7,235 — (12,028) 50,840 Preferred stock dividends of subsidiaries — 133 95 — — 228 Net income attributable to Hawaiian Electric 50,612 4,888 7,140 — (12,028) 50,612 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 50,342 4,888 7,140 — (12,028) $ 50,342 Condensed Consolidating Statement of Income Three months ended September 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 398,877 82,172 81,629 — (110) $ 562,568 Expenses Fuel oil 70,557 17,047 17,438 — — 105,042 Purchased power 116,249 17,665 15,111 — — 149,025 Other operation and maintenance 71,179 17,565 22,499 — — 111,243 Depreciation 37,853 9,760 8,076 — — 55,689 Taxes, other than income taxes 38,005 7,512 7,534 — — 53,051 Total expenses 333,843 69,549 70,658 — — 474,050 Operating income 65,034 12,623 10,971 — (110) 88,518 Allowance for equity funds used during construction 1,902 208 237 — — 2,347 Equity in earnings of subsidiaries 14,912 — — — (14,912) — Retirement defined benefits expense—other than service costs (591) 194 (35) — — (432) Interest expense and other charges, net (11,970) (2,519) (2,457) — 110 (16,836) Allowance for borrowed funds used during construction 659 65 77 — — 801 Income before income taxes 69,946 10,571 8,793 — (14,912) 74,398 Income taxes 9,611 2,378 1,846 13,835 Net income 60,335 8,193 6,947 — (14,912) 60,563 Preferred stock dividends of subsidiaries — 133 95 — 228 Net income attributable to Hawaiian Electric 60,335 8,060 6,852 — (14,912) 60,335 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 60,065 8,060 6,852 — (14,912) $ 60,065 Condensed Consolidating Statement of Income Nine months ended September 30, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 1,301,297 276,974 267,992 — (21) $ 1,846,242 Expenses Fuel oil 306,982 57,175 83,088 — — 447,245 Purchased power 370,240 76,992 43,288 — — 490,520 Other operation and maintenance 230,429 57,350 61,401 — — 349,180 Depreciation 116,733 30,151 25,238 — — 172,122 Taxes, other than income taxes 124,167 25,865 25,153 — — 175,185 Total expenses 1,148,551 247,533 238,168 — — 1,634,252 Operating income 152,746 29,441 29,824 — (21) 211,990 Allowance for equity funds used during construction 5,677 403 915 — — 6,995 Equity in earnings of subsidiaries 35,282 — — — (35,282) — Retirement defined benefits expense—other than service costs 2,511 503 (96) — — 2,918 Interest expense and other charges, net (38,604) (7,744) (7,799) — 21 (54,126) Allowance for borrowed funds used during construction 1,921 136 329 — — 2,386 Income before income taxes 159,533 22,739 23,173 — (35,282) 170,163 Income taxes 23,122 5,152 4,792 — — 33,066 Net income 136,411 17,587 18,381 — (35,282) 137,097 Preferred stock dividends of subsidiaries — 400 286 — — 686 Net income attributable to Hawaiian Electric 136,411 17,187 18,095 — (35,282) 136,411 Preferred stock dividends of Hawaiian Electric 810 — — — — 810 Net income for common stock $ 135,601 17,187 18,095 — (35,282) $ 135,601 Condensed Consolidating Statement of Income Nine months ended September 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 1,200,677 249,970 244,043 — (465) $ 1,694,225 Expenses Fuel oil 268,382 55,733 66,599 — — 390,714 Purchased power 333,146 53,032 39,501 — — 425,679 Other operation and maintenance 231,090 54,250 63,491 — — 348,831 Depreciation 113,724 29,281 24,230 — — 167,235 Taxes, other than income taxes 115,179 23,324 22,986 — — 161,489 Total expenses 1,061,521 215,620 216,807 — — 1,493,948 Operating income 139,156 34,350 27,236 — (465) 200,277 Allowance for equity funds used during construction 5,452 520 584 — — 6,556 Equity in earnings of subsidiaries 37,492 — — — (37,492) — Retirement defined benefits expense—other than service costs (1,683) 581 (93) — — (1,195) Interest expense and other charges, net (36,471) (7,536) (7,226) — 465 (50,768) Allowance for borrowed funds used during construction 1,887 163 191 — — 2,241 Income before income taxes 145,833 28,078 20,692 — (37,492) 157,111 Income taxes 18,724 6,372 4,220 — — 29,316 Net income 127,109 21,706 16,472 — (37,492) 127,795 Preferred stock dividends of subsidiaries — 400 286 — — 686 Net income attributable to Hawaiian Electric 127,109 21,306 16,186 — (37,492) 127,109 Preferred stock dividends of Hawaiian Electric 810 — — — — 810 Net income for common stock $ 126,299 21,306 16,186 — (37,492) $ 126,299 Statements of Income and Comprehensive Income Data Three months ended September 30 Nine months ended September 30 (in thousands) 2021 2020 2021 2020 Interest and dividend income Interest and fees on loans $ 49,445 $ 52,419 $ 150,418 $ 161,505 Interest and dividends on investment securities 11,996 7,221 31,709 22,939 Total interest and dividend income 61,441 59,640 182,127 184,444 Interest expense Interest on deposit liabilities 1,176 2,287 3,919 8,945 Interest on other borrowings 5 61 55 449 Total interest expense 1,181 2,348 3,974 9,394 Net interest income 60,260 57,292 178,153 175,050 Provision for credit losses (1,725) 13,970 (22,367) 39,504 Net interest income after provision for credit losses 61,985 43,322 200,520 135,546 Noninterest income Fees from other financial services 4,800 4,233 15,337 11,906 Fee income on deposit liabilities 4,262 3,832 12,029 11,842 Fee income on other financial products 2,124 1,524 6,767 4,608 Bank-owned life insurance 2,026 1,965 6,211 4,432 Mortgage banking income 1,272 7,681 7,497 15,933 Gain on sale of investment securities, net — — 528 9,275 Other income, net 283 (231) 631 (69) Total noninterest income 14,767 19,004 49,000 57,927 Noninterest expense Compensation and employee benefits 30,888 26,431 86,595 77,287 Occupancy 5,157 5,693 15,226 16,402 Data processing 4,278 3,366 13,162 11,052 Services 2,272 2,624 7,609 7,907 Equipment 2,373 2,001 6,989 6,630 Office supplies, printing and postage 1,072 1,187 3,094 3,577 Marketing 995 727 2,308 1,908 FDIC insurance 808 714 2,412 1,567 Other expense 1 3,668 4,556 9,790 15,813 Total noninterest expense 51,511 47,299 147,185 142,143 Income before income taxes 25,241 15,027 102,335 51,330 Income taxes 5,976 2,877 23,230 9,405 Net income 19,265 12,150 79,105 41,925 Other comprehensive income (loss), net of taxes (11,684) 1,393 (40,439) 20,960 Comprehensive income $ 7,581 $ 13,543 $ 38,666 $ 62,885 1 The three- and nine-month periods ended September 30, 2021 include approximately $0.1 million and $0.5 million, respectively, of certain direct and incremental COVID-19 related costs. The three and nine-month periods ended September 30, 2020 include approximately $0.7 million and $4.5 million, respectively, of certain significant direct and incremental COVID-19 related costs. These costs for the first nine months of 2020, which have been recorded in Other expense , include $2.4 million of compensation expense and $1.7 million of enhanced cleaning and sanitation costs. Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended September 30, Nine months ended September 30 (in thousands) 2021 2020 2021 2020 Interest and dividend income $ 61,441 $ 59,640 $ 182,127 $ 184,444 Noninterest income 14,767 19,004 49,000 57,927 Less: Gain on sale of investment securities, net — — 528 9,275 *Revenues-Bank 76,208 78,644 230,599 233,096 Total interest expense 1,181 2,348 3,974 9,394 Provision for credit losses (1,725) 13,970 (22,367) 39,504 Noninterest expense 51,511 47,299 147,185 142,143 Less: Retirement defined benefits expense (credit)—other than service costs (184) 473 (1,648) 1,341 *Expenses-Bank 51,151 63,144 130,440 189,700 *Operating income-Bank 25,057 15,500 100,159 43,396 Add back: Retirement defined benefits expense (credit)—other than service costs (184) 473 (1,648) 1,341 Add back: Gain on sale of investment securities, net — — 528 9,275 Income before income taxes $ 25,241 $ 15,027 $ 102,335 $ 51,330 |
Schedule of condensed consolidating statement of comprehensive income | Condensed Consolidating Statement of Comprehensive Income Three months ended September 30, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net income for common stock $ 50,342 4,888 7,140 — (12,028) $ 50,342 Other comprehensive income, 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 2,905 393 393 — (786) 2,905 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (2,799) (391) (393) — 784 (2,799) Other comprehensive income, net of taxes 106 2 — — (2) 106 Comprehensive income attributable to common shareholder $ 50,448 4,890 7,140 — (12,030) $ 50,448 Condensed Consolidating Statement of Comprehensive Income Three months ended September 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net income for common stock $ 60,065 8,060 6,852 — (14,912) $ 60,065 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 5,769 885 770 — (1,655) 5,769 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (5,721) (887) (767) — 1,654 (5,721) Other comprehensive income (loss), net of taxes 48 (2) 3 — (1) 48 Comprehensive income attributable to common shareholder $ 60,113 8,058 6,855 — (14,913) $ 60,113 Condensed Consolidating Statement of Comprehensive Income Nine months ended September 30, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Consolidated Net income for common stock $ 135,601 17,187 18,095 — (35,282) $ 135,601 Other comprehensive income, 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 taxes 14,596 2,062 1,915 — (3,977) 14,596 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (14,421) (2,059) (1,915) — 3,974 (14,421) Other comprehensive income, net of taxes 175 3 — — (3) 175 Comprehensive income attributable to common shareholder $ 135,776 17,190 18,095 — (35,285) $ 135,776 Condensed Consolidating Statement of Comprehensive Income Nine months ended September 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Consolidated Net income for common stock $ 126,299 21,306 16,186 — (37,492) $ 126,299 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 16,137 2,384 2,072 — (4,456) 16,137 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (16,038) (2,382) (2,072) — 4,454 (16,038) Other comprehensive income, net of taxes 99 2 — — (2) 99 Comprehensive income attributable to common shareholder $ 126,398 21,308 16,186 — (37,494) $ 126,398 |
Schedule of condensed consolidating balance sheet | Condensed Consolidating Balance Sheet September 30, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consoli- Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 42,410 5,606 3,594 — — $ 51,610 Plant and equipment 5,063,487 1,375,782 1,230,451 — — 7,669,720 Less accumulated depreciation (1,766,707) (619,003) (562,005) — — (2,947,715) Construction in progress 172,417 17,966 31,135 — — 221,518 Utility property, plant and equipment, net 3,511,607 780,351 703,175 — — 4,995,133 Nonutility property, plant and equipment, less accumulated depreciation 5,303 115 1,532 — — 6,950 Total property, plant and equipment, net 3,516,910 780,466 704,707 — — 5,002,083 Investment in wholly owned subsidiaries, at equity 639,900 — — — (639,900) — Current assets Cash and cash equivalents 25,981 3,788 6,621 77 — 36,467 Restricted cash 6,313 — — — — 6,313 Advances to affiliates 700 — — — (700) — Customer accounts receivable, net 118,776 29,371 26,090 — — 174,237 Accrued unbilled revenues, net 93,949 17,660 17,470 — — 129,079 Other accounts receivable, net 20,732 3,843 3,616 — (22,075) 6,116 Fuel oil stock, at average cost 71,072 13,079 16,650 — — 100,801 Materials and supplies, at average cost 43,094 10,107 19,796 — — 72,997 Prepayments and other 41,706 5,232 7,023 — — 53,961 Regulatory assets 47,004 2,966 6,254 — — 56,224 Total current assets 469,327 86,046 103,520 77 (22,775) 636,195 Other long-term assets Operating lease right-of-use assets 96,026 23,271 327 — — 119,624 Regulatory assets 489,746 108,093 103,141 — — 700,980 Other 112,298 19,008 18,448 — (5,728) 144,026 Total other long-term assets 698,070 150,372 121,916 — (5,728) 964,630 Total assets $ 5,324,207 1,016,884 930,143 77 (668,403) $ 6,602,908 Capitalization and liabilities Capitalization Common stock equity $ 2,193,919 323,691 316,132 77 (639,900) $ 2,193,919 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,176,477 246,360 253,386 — — 1,676,223 Total capitalization 3,392,689 577,051 574,518 77 (639,900) 3,904,435 Current liabilities Current portion of operating lease liabilities 61,505 3,354 35 — — 64,894 Short-term borrowings from affiliate — 700 — — (700) — Accounts payable 101,685 24,640 20,550 — — 146,875 Interest and preferred dividends payable 20,390 3,750 4,471 — (1) 28,610 Taxes accrued, including revenue taxes 136,016 31,338 29,014 — — 196,368 Regulatory liabilities 21,257 4,164 6,840 — — 32,261 Other 71,738 14,488 20,503 — (22,223) 84,506 Total current liabilities 412,591 82,434 81,413 — (22,924) 553,514 Deferred credits and other liabilities Operating lease liabilities 47,585 19,917 300 — — 67,802 Deferred income taxes 284,245 51,822 60,486 — — 396,553 Regulatory liabilities 672,712 177,877 92,662 — — 943,251 Unamortized tax credits 78,215 14,577 13,586 — — 106,378 Defined benefit pension and other postretirement benefit plans liability 364,749 74,183 76,619 — (5,579) 509,972 Other 71,421 19,023 30,559 — — 121,003 Total deferred credits and other liabilities 1,518,927 357,399 274,212 — (5,579) 2,144,959 Total capitalization and liabilities $ 5,324,207 1,016,884 930,143 77 (668,403) $ 6,602,908 Condensed Consolidating Balance Sheet December 31, 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 $ 42,411 5,606 3,594 — — $ 51,611 Plant and equipment 4,960,470 1,352,885 1,195,988 — — 7,509,343 Less accumulated depreciation (1,677,256) (597,606) (544,217) — — (2,819,079) Construction in progress 143,616 13,043 31,683 — — 188,342 Utility property, plant and equipment, net 3,469,241 773,928 687,048 — — 4,930,217 Nonutility property, plant and equipment, less accumulated depreciation 5,306 115 1,532 — — 6,953 Total property, plant and equipment, net 3,474,547 774,043 688,580 — — 4,937,170 Investment in wholly owned subsidiaries, at equity 626,890 — — — (626,890) — Current assets Cash and cash equivalents 42,205 3,046 2,032 77 — 47,360 Restricted cash 15,966 — — — — 15,966 Advances to affiliates 26,700 — — — (26,700) — Customer accounts receivable, net 102,736 23,989 21,107 — — 147,832 Accrued unbilled revenues, net 73,628 13,631 13,777 — — 101,036 Other accounts receivable, net 17,984 3,028 2,856 — (16,195) 7,673 Fuel oil stock, at average cost 38,777 8,471 10,990 — — 58,238 Materials and supplies, at average cost 38,786 9,896 18,662 — — 67,344 Prepayments and other 34,306 5,197 4,580 — — 44,083 Regulatory assets 22,095 1,954 6,386 — — 30,435 Total current assets 413,183 69,212 80,390 77 (42,895) 519,967 Other long-term assets Operating lease right-of-use assets 125,858 1,443 353 — — 127,654 Regulatory assets 513,192 114,461 108,620 — — 736,273 Other 98,307 17,992 20,010 — — 136,309 Total other long-term assets 737,357 133,896 128,983 — — 1,000,236 Total assets $ 5,251,977 977,151 897,953 77 (669,785) $ 6,457,373 Capitalization and liabilities Capitalization Common stock equity $ 2,141,918 317,451 309,363 77 (626,891) $ 2,141,918 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,116,426 216,447 228,429 — — 1,561,302 Total capitalization 3,280,637 540,898 542,792 77 (626,891) 3,737,513 Current liabilities Current portion of operating lease liabilities 64,599 98 33 — — 64,730 Short-term borrowings-non-affiliate 49,979 — — — — 49,979 Short-term borrowings-affiliate — 18,800 7,900 — (26,700) — Accounts payable 97,102 19,570 17,177 — — 133,849 Interest and preferred dividends payable 14,480 3,138 2,790 — (58) 20,350 Taxes accrued, including revenue taxes 135,018 29,869 27,637 — — 192,524 Regulatory liabilities 20,224 8,785 8,292 — — 37,301 Other 57,926 13,851 18,621 — (16,136) 74,262 Total current liabilities 439,328 94,111 82,450 — (42,894) 572,995 Deferred credits and other liabilities Operating lease liabilities 67,824 1,344 326 — — 69,494 Deferred income taxes 282,685 54,108 61,005 — — 397,798 Regulatory liabilities 656,270 173,938 92,277 — — 922,485 Unamortized tax credits 82,563 15,363 13,989 — — 111,915 Defined benefit pension and other postretirement benefit plans liability 373,112 77,679 79,741 — — 530,532 Other 69,558 19,710 25,373 — — 114,641 Total deferred credits and other liabilities 1,532,012 342,142 272,711 — — 2,146,865 Total capitalization and liabilities $ 5,251,977 977,151 897,953 77 (669,785) $ 6,457,373 Balance Sheets Data (in thousands) September 30, 2021 December 31, 2020 Assets Cash and due from banks $ 109,942 $ 178,422 Interest-bearing deposits 80,007 114,304 Cash and cash equivalents 189,949 292,726 Investment securities Available-for-sale, at fair value 2,580,830 1,970,417 Held-to-maturity, at amortized cost (fair value of $484,654 and $229,963, respectively) 491,871 226,947 Stock in Federal Home Loan Bank, at cost 10,000 8,680 Loans held for investment 5,122,124 5,333,843 Allowance for credit losses (75,944) (101,201) Net loans 5,046,180 5,232,642 Loans held for sale, at lower of cost or fair value 53,998 28,275 Other 555,401 554,656 Goodwill 82,190 82,190 Total assets $ 9,010,419 $ 8,396,533 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 2,931,394 $ 2,598,500 Deposit liabilities—interest-bearing 5,045,144 4,788,457 Other borrowings 129,305 89,670 Other 168,064 183,731 Total liabilities 8,273,907 7,660,358 Common stock 1 1 Additional paid-in capital 353,429 351,758 Retained earnings 408,575 369,470 Accumulated other comprehensive income (loss), net of taxes Net unrealized gains (losses) on securities $ (20,322) $ 19,986 Retirement benefit plans (5,171) (25,493) (5,040) 14,946 Total shareholder’s equity 736,512 736,175 Total liabilities and shareholder’s equity $ 9,010,419 $ 8,396,533 Other assets Bank-owned life insurance $ 166,486 $ 163,265 Premises and equipment, net 205,624 206,134 Accrued interest receivable 22,036 24,616 Mortgage-servicing rights 10,272 10,020 Low-income housing investments 84,728 83,435 Other 66,255 67,186 $ 555,401 $ 554,656 Other liabilities Accrued expenses $ 59,270 $ 62,694 Federal and state income taxes payable — 6,582 Cashier’s checks 37,451 38,011 Advance payments by borrowers 5,129 10,207 Other 66,214 66,237 $ 168,064 $ 183,731 |
Schedule of condensed consolidating statement of changes in common stock equity | Condensed Consolidating Statement of Changes in Common Stock Equity Nine months ended September 30, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Balance, December 31, 2020 $ 2,141,918 317,451 309,363 77 (626,891) $ 2,141,918 Net income for common stock 135,601 17,187 18,095 — (35,282) 135,601 Other comprehensive income, net of taxes 175 3 — — (3) 175 Common stock dividends (83,775) (10,950) (11,326) — 22,276 (83,775) Balance, September 30, 2021 $ 2,193,919 323,691 316,132 77 (639,900) $ 2,193,919 Condensed Consolidating Statement of Changes in Common Stock Equity Nine months ended September 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 126,299 21,306 16,186 — (37,492) 126,299 Other comprehensive income, net of taxes 99 2 — — (2) 99 Common stock dividends (80,352) (12,240) (10,788) — 23,028 (80,352) Dissolution of subsidiary — — — (24) 24 — Balance, September 30, 2020 $ 2,093,398 308,066 298,268 77 (606,411) $ 2,093,398 |
Schedule of condensed consolidating statement of cash flows | Condensed Consolidating Statement of Cash Flows Nine months ended September 30, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net cash provided by operating activities $ 157,191 32,698 30,643 — (22,276) $ 198,256 Cash flows from investing activities Capital expenditures (137,916) (33,511) (32,319) — — (203,746) Advances from affiliates 26,000 — — — (26,000) — Other 4,136 1,121 900 — — 6,157 Net cash used in investing activities (107,780) (32,390) (31,419) — (26,000) (197,589) Cash flows from financing activities Common stock dividends (83,775) (10,950) (11,326) — 22,276 (83,775) Preferred stock dividends of Hawaiian Electric and subsidiaries (810) (400) (286) — — (1,496) Repayment of short-term debt (50,000) — — — — (50,000) Proceeds from issuance of long-term debt 60,000 30,000 25,000 — — 115,000 Net decrease in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less — (18,100) (7,900) — 26,000 — Other (703) (116) (123) — — (942) Net cash provided by (used in) financing activities (75,288) 434 5,365 — 48,276 (21,213) Net increase (decrease) in cash and cash equivalents (25,877) 742 4,589 — — (20,546) Cash, cash equivalents and restricted cash, beginning of period 58,171 3,046 2,032 77 — 63,326 Cash, cash equivalents and restricted cash, end of period 32,294 3,788 6,621 77 — 42,780 Less: Restricted cash (6,313) — — — — (6,313) Cash and cash equivalents, end of period $ 25,981 3,788 6,621 77 — $ 36,467 Condensed Consolidating Statement of Cash Flows Nine months ended September 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net cash provided by operating activities $ 205,645 27,256 34,678 — (22,624) $ 244,955 Cash flows from investing activities Capital expenditures (180,088) (48,750) (38,644) — — (267,482) Advances from (to) affiliates (800) 8,000 — — (7,200) — Other 5,636 1,056 1,031 (24) (404) 7,295 Net cash used in investing activities (175,252) (39,694) (37,613) (24) (7,604) (260,187) Cash flows from financing activities Common stock dividends (80,352) (12,240) (10,788) — 23,028 (80,352) Preferred stock dividends of Hawaiian Electric and subsidiaries (810) (400) (286) — — (1,496) 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 (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) 26,500 (25,700) — 7,200 (38,987) Other (1,249) (67) (253) — — (1,569) Net cash provided by (used in) financing activities (19,398) 9,793 2,973 — 30,228 23,596 Net increase (decrease) in cash and cash equivalents 10,995 (2,645) 38 (24) — 8,364 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 43,983 4,363 1,835 77 — 50,258 Less: Restricted cash (20,458) — — — — (20,458) Cash and cash equivalents, end of period $ 23,525 4,363 1,835 77 — $ 29,800 |
Bank segment (Tables)
Bank segment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Bank Subsidiary [Abstract] | |
Schedule of statements of income data | Condensed Consolidating Statement of Income Three months ended September 30, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 478,046 100,313 101,141 — (1) $ 679,499 Expenses Fuel oil 126,909 21,104 32,669 — — 180,682 Purchased power 136,688 31,159 17,912 — — 185,759 Other operation and maintenance 75,191 19,964 21,313 — — 116,468 Depreciation 38,912 10,050 8,424 — — 57,386 Taxes, other than income taxes 45,239 9,333 9,440 — — 64,012 Total expenses 422,939 91,610 89,758 — — 604,307 Operating income 55,107 8,703 11,383 — (1) 75,192 Allowance for equity funds used during construction 1,999 131 297 — — 2,427 Equity in earnings of subsidiaries 12,028 — — — (12,028) — Retirement defined benefits expense—other than service costs 741 166 (30) — — 877 Interest expense and other charges, net (12,943) (2,590) (2,616) — 1 (18,148) Allowance for borrowed funds used during construction 676 44 107 — — 827 Income before income taxes 57,608 6,454 9,141 — (12,028) 61,175 Income taxes 6,996 1,433 1,906 — — 10,335 Net income 50,612 5,021 7,235 — (12,028) 50,840 Preferred stock dividends of subsidiaries — 133 95 — — 228 Net income attributable to Hawaiian Electric 50,612 4,888 7,140 — (12,028) 50,612 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 50,342 4,888 7,140 — (12,028) $ 50,342 Condensed Consolidating Statement of Income Three months ended September 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 398,877 82,172 81,629 — (110) $ 562,568 Expenses Fuel oil 70,557 17,047 17,438 — — 105,042 Purchased power 116,249 17,665 15,111 — — 149,025 Other operation and maintenance 71,179 17,565 22,499 — — 111,243 Depreciation 37,853 9,760 8,076 — — 55,689 Taxes, other than income taxes 38,005 7,512 7,534 — — 53,051 Total expenses 333,843 69,549 70,658 — — 474,050 Operating income 65,034 12,623 10,971 — (110) 88,518 Allowance for equity funds used during construction 1,902 208 237 — — 2,347 Equity in earnings of subsidiaries 14,912 — — — (14,912) — Retirement defined benefits expense—other than service costs (591) 194 (35) — — (432) Interest expense and other charges, net (11,970) (2,519) (2,457) — 110 (16,836) Allowance for borrowed funds used during construction 659 65 77 — — 801 Income before income taxes 69,946 10,571 8,793 — (14,912) 74,398 Income taxes 9,611 2,378 1,846 13,835 Net income 60,335 8,193 6,947 — (14,912) 60,563 Preferred stock dividends of subsidiaries — 133 95 — 228 Net income attributable to Hawaiian Electric 60,335 8,060 6,852 — (14,912) 60,335 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 60,065 8,060 6,852 — (14,912) $ 60,065 Condensed Consolidating Statement of Income Nine months ended September 30, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 1,301,297 276,974 267,992 — (21) $ 1,846,242 Expenses Fuel oil 306,982 57,175 83,088 — — 447,245 Purchased power 370,240 76,992 43,288 — — 490,520 Other operation and maintenance 230,429 57,350 61,401 — — 349,180 Depreciation 116,733 30,151 25,238 — — 172,122 Taxes, other than income taxes 124,167 25,865 25,153 — — 175,185 Total expenses 1,148,551 247,533 238,168 — — 1,634,252 Operating income 152,746 29,441 29,824 — (21) 211,990 Allowance for equity funds used during construction 5,677 403 915 — — 6,995 Equity in earnings of subsidiaries 35,282 — — — (35,282) — Retirement defined benefits expense—other than service costs 2,511 503 (96) — — 2,918 Interest expense and other charges, net (38,604) (7,744) (7,799) — 21 (54,126) Allowance for borrowed funds used during construction 1,921 136 329 — — 2,386 Income before income taxes 159,533 22,739 23,173 — (35,282) 170,163 Income taxes 23,122 5,152 4,792 — — 33,066 Net income 136,411 17,587 18,381 — (35,282) 137,097 Preferred stock dividends of subsidiaries — 400 286 — — 686 Net income attributable to Hawaiian Electric 136,411 17,187 18,095 — (35,282) 136,411 Preferred stock dividends of Hawaiian Electric 810 — — — — 810 Net income for common stock $ 135,601 17,187 18,095 — (35,282) $ 135,601 Condensed Consolidating Statement of Income Nine months ended September 30, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 1,200,677 249,970 244,043 — (465) $ 1,694,225 Expenses Fuel oil 268,382 55,733 66,599 — — 390,714 Purchased power 333,146 53,032 39,501 — — 425,679 Other operation and maintenance 231,090 54,250 63,491 — — 348,831 Depreciation 113,724 29,281 24,230 — — 167,235 Taxes, other than income taxes 115,179 23,324 22,986 — — 161,489 Total expenses 1,061,521 215,620 216,807 — — 1,493,948 Operating income 139,156 34,350 27,236 — (465) 200,277 Allowance for equity funds used during construction 5,452 520 584 — — 6,556 Equity in earnings of subsidiaries 37,492 — — — (37,492) — Retirement defined benefits expense—other than service costs (1,683) 581 (93) — — (1,195) Interest expense and other charges, net (36,471) (7,536) (7,226) — 465 (50,768) Allowance for borrowed funds used during construction 1,887 163 191 — — 2,241 Income before income taxes 145,833 28,078 20,692 — (37,492) 157,111 Income taxes 18,724 6,372 4,220 — — 29,316 Net income 127,109 21,706 16,472 — (37,492) 127,795 Preferred stock dividends of subsidiaries — 400 286 — — 686 Net income attributable to Hawaiian Electric 127,109 21,306 16,186 — (37,492) 127,109 Preferred stock dividends of Hawaiian Electric 810 — — — — 810 Net income for common stock $ 126,299 21,306 16,186 — (37,492) $ 126,299 Statements of Income and Comprehensive Income Data Three months ended September 30 Nine months ended September 30 (in thousands) 2021 2020 2021 2020 Interest and dividend income Interest and fees on loans $ 49,445 $ 52,419 $ 150,418 $ 161,505 Interest and dividends on investment securities 11,996 7,221 31,709 22,939 Total interest and dividend income 61,441 59,640 182,127 184,444 Interest expense Interest on deposit liabilities 1,176 2,287 3,919 8,945 Interest on other borrowings 5 61 55 449 Total interest expense 1,181 2,348 3,974 9,394 Net interest income 60,260 57,292 178,153 175,050 Provision for credit losses (1,725) 13,970 (22,367) 39,504 Net interest income after provision for credit losses 61,985 43,322 200,520 135,546 Noninterest income Fees from other financial services 4,800 4,233 15,337 11,906 Fee income on deposit liabilities 4,262 3,832 12,029 11,842 Fee income on other financial products 2,124 1,524 6,767 4,608 Bank-owned life insurance 2,026 1,965 6,211 4,432 Mortgage banking income 1,272 7,681 7,497 15,933 Gain on sale of investment securities, net — — 528 9,275 Other income, net 283 (231) 631 (69) Total noninterest income 14,767 19,004 49,000 57,927 Noninterest expense Compensation and employee benefits 30,888 26,431 86,595 77,287 Occupancy 5,157 5,693 15,226 16,402 Data processing 4,278 3,366 13,162 11,052 Services 2,272 2,624 7,609 7,907 Equipment 2,373 2,001 6,989 6,630 Office supplies, printing and postage 1,072 1,187 3,094 3,577 Marketing 995 727 2,308 1,908 FDIC insurance 808 714 2,412 1,567 Other expense 1 3,668 4,556 9,790 15,813 Total noninterest expense 51,511 47,299 147,185 142,143 Income before income taxes 25,241 15,027 102,335 51,330 Income taxes 5,976 2,877 23,230 9,405 Net income 19,265 12,150 79,105 41,925 Other comprehensive income (loss), net of taxes (11,684) 1,393 (40,439) 20,960 Comprehensive income $ 7,581 $ 13,543 $ 38,666 $ 62,885 1 The three- and nine-month periods ended September 30, 2021 include approximately $0.1 million and $0.5 million, respectively, of certain direct and incremental COVID-19 related costs. The three and nine-month periods ended September 30, 2020 include approximately $0.7 million and $4.5 million, respectively, of certain significant direct and incremental COVID-19 related costs. These costs for the first nine months of 2020, which have been recorded in Other expense , include $2.4 million of compensation expense and $1.7 million of enhanced cleaning and sanitation costs. Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended September 30, Nine months ended September 30 (in thousands) 2021 2020 2021 2020 Interest and dividend income $ 61,441 $ 59,640 $ 182,127 $ 184,444 Noninterest income 14,767 19,004 49,000 57,927 Less: Gain on sale of investment securities, net — — 528 9,275 *Revenues-Bank 76,208 78,644 230,599 233,096 Total interest expense 1,181 2,348 3,974 9,394 Provision for credit losses (1,725) 13,970 (22,367) 39,504 Noninterest expense 51,511 47,299 147,185 142,143 Less: Retirement defined benefits expense (credit)—other than service costs (184) 473 (1,648) 1,341 *Expenses-Bank 51,151 63,144 130,440 189,700 *Operating income-Bank 25,057 15,500 100,159 43,396 Add back: Retirement defined benefits expense (credit)—other than service costs (184) 473 (1,648) 1,341 Add back: Gain on sale of investment securities, net — — 528 9,275 Income before income taxes $ 25,241 $ 15,027 $ 102,335 $ 51,330 |
Schedule of statements of comprehensive income data | Statements of Income and Comprehensive Income Data Three months ended September 30 Nine months ended September 30 (in thousands) 2021 2020 2021 2020 Interest and dividend income Interest and fees on loans $ 49,445 $ 52,419 $ 150,418 $ 161,505 Interest and dividends on investment securities 11,996 7,221 31,709 22,939 Total interest and dividend income 61,441 59,640 182,127 184,444 Interest expense Interest on deposit liabilities 1,176 2,287 3,919 8,945 Interest on other borrowings 5 61 55 449 Total interest expense 1,181 2,348 3,974 9,394 Net interest income 60,260 57,292 178,153 175,050 Provision for credit losses (1,725) 13,970 (22,367) 39,504 Net interest income after provision for credit losses 61,985 43,322 200,520 135,546 Noninterest income Fees from other financial services 4,800 4,233 15,337 11,906 Fee income on deposit liabilities 4,262 3,832 12,029 11,842 Fee income on other financial products 2,124 1,524 6,767 4,608 Bank-owned life insurance 2,026 1,965 6,211 4,432 Mortgage banking income 1,272 7,681 7,497 15,933 Gain on sale of investment securities, net — — 528 9,275 Other income, net 283 (231) 631 (69) Total noninterest income 14,767 19,004 49,000 57,927 Noninterest expense Compensation and employee benefits 30,888 26,431 86,595 77,287 Occupancy 5,157 5,693 15,226 16,402 Data processing 4,278 3,366 13,162 11,052 Services 2,272 2,624 7,609 7,907 Equipment 2,373 2,001 6,989 6,630 Office supplies, printing and postage 1,072 1,187 3,094 3,577 Marketing 995 727 2,308 1,908 FDIC insurance 808 714 2,412 1,567 Other expense 1 3,668 4,556 9,790 15,813 Total noninterest expense 51,511 47,299 147,185 142,143 Income before income taxes 25,241 15,027 102,335 51,330 Income taxes 5,976 2,877 23,230 9,405 Net income 19,265 12,150 79,105 41,925 Other comprehensive income (loss), net of taxes (11,684) 1,393 (40,439) 20,960 Comprehensive income $ 7,581 $ 13,543 $ 38,666 $ 62,885 1 The three- and nine-month periods ended September 30, 2021 include approximately $0.1 million and $0.5 million, respectively, of certain direct and incremental COVID-19 related costs. The three and nine-month periods ended September 30, 2020 include approximately $0.7 million and $4.5 million, respectively, of certain significant direct and incremental COVID-19 related costs. These costs for the first nine months of 2020, which have been recorded in Other expense , include $2.4 million of compensation expense and $1.7 million of enhanced cleaning and sanitation costs. Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended September 30, Nine months ended September 30 (in thousands) 2021 2020 2021 2020 Interest and dividend income $ 61,441 $ 59,640 $ 182,127 $ 184,444 Noninterest income 14,767 19,004 49,000 57,927 Less: Gain on sale of investment securities, net — — 528 9,275 *Revenues-Bank 76,208 78,644 230,599 233,096 Total interest expense 1,181 2,348 3,974 9,394 Provision for credit losses (1,725) 13,970 (22,367) 39,504 Noninterest expense 51,511 47,299 147,185 142,143 Less: Retirement defined benefits expense (credit)—other than service costs (184) 473 (1,648) 1,341 *Expenses-Bank 51,151 63,144 130,440 189,700 *Operating income-Bank 25,057 15,500 100,159 43,396 Add back: Retirement defined benefits expense (credit)—other than service costs (184) 473 (1,648) 1,341 Add back: Gain on sale of investment securities, net — — 528 9,275 Income before income taxes $ 25,241 $ 15,027 $ 102,335 $ 51,330 |
Schedule of balance sheets data | Condensed Consolidating Balance Sheet September 30, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consoli- Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 42,410 5,606 3,594 — — $ 51,610 Plant and equipment 5,063,487 1,375,782 1,230,451 — — 7,669,720 Less accumulated depreciation (1,766,707) (619,003) (562,005) — — (2,947,715) Construction in progress 172,417 17,966 31,135 — — 221,518 Utility property, plant and equipment, net 3,511,607 780,351 703,175 — — 4,995,133 Nonutility property, plant and equipment, less accumulated depreciation 5,303 115 1,532 — — 6,950 Total property, plant and equipment, net 3,516,910 780,466 704,707 — — 5,002,083 Investment in wholly owned subsidiaries, at equity 639,900 — — — (639,900) — Current assets Cash and cash equivalents 25,981 3,788 6,621 77 — 36,467 Restricted cash 6,313 — — — — 6,313 Advances to affiliates 700 — — — (700) — Customer accounts receivable, net 118,776 29,371 26,090 — — 174,237 Accrued unbilled revenues, net 93,949 17,660 17,470 — — 129,079 Other accounts receivable, net 20,732 3,843 3,616 — (22,075) 6,116 Fuel oil stock, at average cost 71,072 13,079 16,650 — — 100,801 Materials and supplies, at average cost 43,094 10,107 19,796 — — 72,997 Prepayments and other 41,706 5,232 7,023 — — 53,961 Regulatory assets 47,004 2,966 6,254 — — 56,224 Total current assets 469,327 86,046 103,520 77 (22,775) 636,195 Other long-term assets Operating lease right-of-use assets 96,026 23,271 327 — — 119,624 Regulatory assets 489,746 108,093 103,141 — — 700,980 Other 112,298 19,008 18,448 — (5,728) 144,026 Total other long-term assets 698,070 150,372 121,916 — (5,728) 964,630 Total assets $ 5,324,207 1,016,884 930,143 77 (668,403) $ 6,602,908 Capitalization and liabilities Capitalization Common stock equity $ 2,193,919 323,691 316,132 77 (639,900) $ 2,193,919 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,176,477 246,360 253,386 — — 1,676,223 Total capitalization 3,392,689 577,051 574,518 77 (639,900) 3,904,435 Current liabilities Current portion of operating lease liabilities 61,505 3,354 35 — — 64,894 Short-term borrowings from affiliate — 700 — — (700) — Accounts payable 101,685 24,640 20,550 — — 146,875 Interest and preferred dividends payable 20,390 3,750 4,471 — (1) 28,610 Taxes accrued, including revenue taxes 136,016 31,338 29,014 — — 196,368 Regulatory liabilities 21,257 4,164 6,840 — — 32,261 Other 71,738 14,488 20,503 — (22,223) 84,506 Total current liabilities 412,591 82,434 81,413 — (22,924) 553,514 Deferred credits and other liabilities Operating lease liabilities 47,585 19,917 300 — — 67,802 Deferred income taxes 284,245 51,822 60,486 — — 396,553 Regulatory liabilities 672,712 177,877 92,662 — — 943,251 Unamortized tax credits 78,215 14,577 13,586 — — 106,378 Defined benefit pension and other postretirement benefit plans liability 364,749 74,183 76,619 — (5,579) 509,972 Other 71,421 19,023 30,559 — — 121,003 Total deferred credits and other liabilities 1,518,927 357,399 274,212 — (5,579) 2,144,959 Total capitalization and liabilities $ 5,324,207 1,016,884 930,143 77 (668,403) $ 6,602,908 Condensed Consolidating Balance Sheet December 31, 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 $ 42,411 5,606 3,594 — — $ 51,611 Plant and equipment 4,960,470 1,352,885 1,195,988 — — 7,509,343 Less accumulated depreciation (1,677,256) (597,606) (544,217) — — (2,819,079) Construction in progress 143,616 13,043 31,683 — — 188,342 Utility property, plant and equipment, net 3,469,241 773,928 687,048 — — 4,930,217 Nonutility property, plant and equipment, less accumulated depreciation 5,306 115 1,532 — — 6,953 Total property, plant and equipment, net 3,474,547 774,043 688,580 — — 4,937,170 Investment in wholly owned subsidiaries, at equity 626,890 — — — (626,890) — Current assets Cash and cash equivalents 42,205 3,046 2,032 77 — 47,360 Restricted cash 15,966 — — — — 15,966 Advances to affiliates 26,700 — — — (26,700) — Customer accounts receivable, net 102,736 23,989 21,107 — — 147,832 Accrued unbilled revenues, net 73,628 13,631 13,777 — — 101,036 Other accounts receivable, net 17,984 3,028 2,856 — (16,195) 7,673 Fuel oil stock, at average cost 38,777 8,471 10,990 — — 58,238 Materials and supplies, at average cost 38,786 9,896 18,662 — — 67,344 Prepayments and other 34,306 5,197 4,580 — — 44,083 Regulatory assets 22,095 1,954 6,386 — — 30,435 Total current assets 413,183 69,212 80,390 77 (42,895) 519,967 Other long-term assets Operating lease right-of-use assets 125,858 1,443 353 — — 127,654 Regulatory assets 513,192 114,461 108,620 — — 736,273 Other 98,307 17,992 20,010 — — 136,309 Total other long-term assets 737,357 133,896 128,983 — — 1,000,236 Total assets $ 5,251,977 977,151 897,953 77 (669,785) $ 6,457,373 Capitalization and liabilities Capitalization Common stock equity $ 2,141,918 317,451 309,363 77 (626,891) $ 2,141,918 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,116,426 216,447 228,429 — — 1,561,302 Total capitalization 3,280,637 540,898 542,792 77 (626,891) 3,737,513 Current liabilities Current portion of operating lease liabilities 64,599 98 33 — — 64,730 Short-term borrowings-non-affiliate 49,979 — — — — 49,979 Short-term borrowings-affiliate — 18,800 7,900 — (26,700) — Accounts payable 97,102 19,570 17,177 — — 133,849 Interest and preferred dividends payable 14,480 3,138 2,790 — (58) 20,350 Taxes accrued, including revenue taxes 135,018 29,869 27,637 — — 192,524 Regulatory liabilities 20,224 8,785 8,292 — — 37,301 Other 57,926 13,851 18,621 — (16,136) 74,262 Total current liabilities 439,328 94,111 82,450 — (42,894) 572,995 Deferred credits and other liabilities Operating lease liabilities 67,824 1,344 326 — — 69,494 Deferred income taxes 282,685 54,108 61,005 — — 397,798 Regulatory liabilities 656,270 173,938 92,277 — — 922,485 Unamortized tax credits 82,563 15,363 13,989 — — 111,915 Defined benefit pension and other postretirement benefit plans liability 373,112 77,679 79,741 — — 530,532 Other 69,558 19,710 25,373 — — 114,641 Total deferred credits and other liabilities 1,532,012 342,142 272,711 — — 2,146,865 Total capitalization and liabilities $ 5,251,977 977,151 897,953 77 (669,785) $ 6,457,373 Balance Sheets Data (in thousands) September 30, 2021 December 31, 2020 Assets Cash and due from banks $ 109,942 $ 178,422 Interest-bearing deposits 80,007 114,304 Cash and cash equivalents 189,949 292,726 Investment securities Available-for-sale, at fair value 2,580,830 1,970,417 Held-to-maturity, at amortized cost (fair value of $484,654 and $229,963, respectively) 491,871 226,947 Stock in Federal Home Loan Bank, at cost 10,000 8,680 Loans held for investment 5,122,124 5,333,843 Allowance for credit losses (75,944) (101,201) Net loans 5,046,180 5,232,642 Loans held for sale, at lower of cost or fair value 53,998 28,275 Other 555,401 554,656 Goodwill 82,190 82,190 Total assets $ 9,010,419 $ 8,396,533 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 2,931,394 $ 2,598,500 Deposit liabilities—interest-bearing 5,045,144 4,788,457 Other borrowings 129,305 89,670 Other 168,064 183,731 Total liabilities 8,273,907 7,660,358 Common stock 1 1 Additional paid-in capital 353,429 351,758 Retained earnings 408,575 369,470 Accumulated other comprehensive income (loss), net of taxes Net unrealized gains (losses) on securities $ (20,322) $ 19,986 Retirement benefit plans (5,171) (25,493) (5,040) 14,946 Total shareholder’s equity 736,512 736,175 Total liabilities and shareholder’s equity $ 9,010,419 $ 8,396,533 Other assets Bank-owned life insurance $ 166,486 $ 163,265 Premises and equipment, net 205,624 206,134 Accrued interest receivable 22,036 24,616 Mortgage-servicing rights 10,272 10,020 Low-income housing investments 84,728 83,435 Other 66,255 67,186 $ 555,401 $ 554,656 Other liabilities Accrued expenses $ 59,270 $ 62,694 Federal and state income taxes payable — 6,582 Cashier’s checks 37,451 38,011 Advance payments by borrowers 5,129 10,207 Other 66,214 66,237 $ 168,064 $ 183,731 |
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 September 30, 2021 Available-for-sale U.S. Treasury and federal agency obligations $ 90,831 $ 1,334 $ (90) $ 92,075 1 $ 19,851 $ (90) — $ — $ — Mortgage-backed securities* 2,471,650 11,193 (41,160) 2,441,683 105 1,772,753 (36,561) 9 123,882 (4,599) Corporate bonds 30,684 961 — 31,645 — — — — — — Mortgage revenue bonds 15,427 — — 15,427 — — — — — — $ 2,608,592 $ 13,488 $ (41,250) $ 2,580,830 106 $ 1,792,604 $ (36,651) 9 $ 123,882 $ (4,599) Held-to-maturity U.S. Treasury and Federal agency obligations $ 40,064 $ 100 $ (13) $ 40,151 1 $ 19,941 $ (13) — $ — $ — Mortgage-backed securities* 451,807 2,387 (9,691) 444,503 23 325,907 (8,278) 2 23,860 (1,413) $ 491,871 $ 2,487 $ (9,704) $ 484,654 24 $ 345,848 $ (8,291) 2 $ 23,860 $ (1,413) December 31, 2020 Available-for-sale U.S. Treasury and federal agency obligations $ 60,260 $ 2,062 $ — $ 62,322 — $ — $ — — $ — $ — Mortgage-backed securities* 1,825,893 26,817 (3,151) 1,849,559 22 373,924 (3,151) — — — Corporate bonds 29,776 1,575 — 31,351 — — — — — — Mortgage revenue bonds 27,185 — — 27,185 — — — — — — $ 1,943,114 $ 30,454 $ (3,151) $ 1,970,417 22 $ 373,924 $ (3,151) — $ — $ — Held-to-maturity Mortgage-backed securities* $ 226,947 $ 3,846 $ (830) $ 229,963 7 $ 114,152 $ (830) — $ — $ — $ 226,947 $ 3,846 $ (830) $ 229,963 7 $ 114,152 $ (830) — $ — $ — * 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: September 30, 2021 Amortized cost Fair value (in thousands) Available-for-sale Due in one year or less $ — $ — Due after one year through five years 76,247 78,071 Due after five years through ten years 45,268 45,649 Due after ten years 15,427 15,427 136,942 139,147 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 2,471,650 2,441,683 Total available-for-sale securities $ 2,608,592 $ 2,580,830 Held-to-maturity Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 40,064 40,151 Due after ten years — — 40,064 40,151 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 451,807 444,503 Total held-to-maturity securities $ 491,871 $ 484,654 |
Schedule of proceeds, gross gains and losses from sales of available-for-sale securities | The proceeds, gross gains and losses from sales of available-for-sale securities were as follows: Three months ended September 30 Nine months ended September 30 2021 2020 2021 2020 (in thousands) Proceeds $ — $ — $ 197,354 $ 169,157 Gross gains — — 975 9,312 Gross losses — — 447 37 Tax expense on realized gains — — 142 2,492 |
Schedule of components of loans receivable | The components of loans were summarized as follows: September 30, 2021 December 31, 2020 (in thousands) Real estate: Residential 1-4 family $ 2,172,073 $ 2,144,239 Commercial real estate 1,090,816 983,865 Home equity line of credit 851,416 963,578 Residential land 19,399 15,617 Commercial construction 109,716 121,424 Residential construction 9,170 11,022 Total real estate 4,252,590 4,239,745 Commercial 758,338 936,748 Consumer 122,656 168,733 Total loans 5,133,584 5,345,226 Less: Deferred fees and discounts (11,460) (11,383) Allowance for credit losses (75,944) (101,201) Total loans, net $ 5,046,180 $ 5,232,642 |
Schedule of allowance for credit losses | The allowance for credit losses (balances and changes) 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 September 30, 2021 Allowance for credit losses: Beginning balance $ 5,518 $ 28,708 $ 5,335 $ 618 $ 1,629 $ 16 $ 20,058 $ 16,370 $ 78,252 Charge-offs (47) — (5) — — — (266) (1,597) (1,915) Recoveries 5 — 7 35 — — 417 1,118 1,582 Provision 522 (2,750) 441 (19) 104 (3) (758) 488 (1,975) Ending balance $ 5,998 $ 25,958 $ 5,778 $ 634 $ 1,733 $ 13 $ 19,451 $ 16,379 $ 75,944 Three months ended September 30, 2020 Allowance for credit losses: Beginning balance $ 3,911 $ 21,100 $ 6,214 $ 356 $ 4,757 $ 14 $ 13,868 $ 31,087 $ 81,307 Charge-offs — — — — — — (1,727) (3,881) (5,608) Recoveries 12 — 50 12 — — 211 1,005 1,290 Provision (286) 11,049 (390) 178 1,282 (3) 5,840 (3,200) 14,470 Ending balance $ 3,637 $ 32,149 $ 5,874 $ 546 $ 6,039 $ 11 $ 18,192 $ 25,011 $ 91,459 Nine months ended September 30, 2021 Allowance for credit losses: Beginning balance $ 4,600 $ 35,607 $ 6,813 $ 609 $ 4,149 $ 11 $ 25,462 $ 23,950 $ 101,201 Charge-offs (67) — (45) — — — (1,356) (6,388) (7,856) Recoveries 59 — 83 56 — — 1,056 3,312 4,566 Provision 1,406 (9,649) (1,073) (31) (2,416) 2 (5,711) (4,495) (21,967) Ending balance $ 5,998 $ 25,958 $ 5,778 $ 634 $ 1,733 $ 13 $ 19,451 $ 16,379 $ 75,944 Nine months ended September 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) — — (2,795) (16,466) (19,619) Recoveries 67 — 56 26 — — 503 2,426 3,078 Provision (953) 16,888 (563) 486 3,653 (6) 9,317 6,382 35,204 Ending balance $ 3,637 $ 32,149 $ 5,874 $ 546 $ 6,039 $ 11 $ 18,192 $ 25,011 $ 91,459 |
Schedule of 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 September 30, 2021 Allowance for loan commitments: Beginning balance $ 400 $ 2,400 $ 850 $ 3,650 Provision — 300 (50) 250 Ending balance $ 400 $ 2,700 $ 800 $ 3,900 Three months ended September 30, 2020 Allowance for loan commitments: Beginning balance $ 300 $ 7,500 $ 300 $ 8,100 Provision — (800) 300 (500) Ending balance $ 300 $ 6,700 $ 600 $ 7,600 Nine months ended September 30, 2021 Allowance for loan commitments: Beginning balance $ 300 $ 3,000 $ 1,000 $ 4,300 Provision 100 (300) (200) (400) Ending balance $ 400 $ 2,700 $ 800 $ 3,900 Nine months ended September 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 — 4,024 276 4,300 Ending balance $ 300 $ 6,700 $ 600 $ 7,600 |
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) 2021 2020 2019 2018 2017 Prior Revolving Converted to term loans Total September 30, 2021 Residential 1-4 family Current $ 541,140 $ 471,759 $ 150,704 $ 75,827 $ 142,235 $ 778,048 $ — $ — $ 2,159,713 30-59 days past due — — — — — 2,224 — — 2,224 60-89 days past due — 276 — — — 1,308 — — 1,584 Greater than 89 days past due — — 3,949 424 — 4,179 — — 8,552 541,140 472,035 154,653 76,251 142,235 785,759 — — 2,172,073 Home equity line of credit Current — — — — — — 809,566 39,932 849,498 30-59 days past due — — — — — — 126 129 255 60-89 days past due — — — — — — 107 101 208 Greater than 89 days past due — — — — — — 1,029 426 1,455 — — — — — — 810,828 40,588 851,416 Residential land Current 8,905 7,341 1,659 647 268 182 — — 19,002 30-59 days past due — — — — — 97 — — 97 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — 300 — — 300 8,905 7,341 1,659 647 268 579 — — 19,399 Residential construction Current 4,664 4,238 — — 268 — — — 9,170 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 4,664 4,238 — — 268 — — — 9,170 Consumer Current 27,059 18,662 38,546 16,378 907 283 13,745 3,819 119,399 30-59 days past due 206 152 523 282 21 — 126 117 1,427 60-89 days past due 24 58 368 198 43 — 61 28 780 Greater than 89 days past due 29 140 396 158 44 — 149 134 1,050 27,318 19,012 39,833 17,016 1,015 283 14,081 4,098 122,656 Commercial real estate Pass 142,977 278,941 62,907 60,174 55,824 257,110 11,288 — 869,221 Special Mention 1,360 4,237 34,617 46,447 23,027 42,850 — — 152,538 Substandard — — 14,021 1,872 1,838 51,326 — — 69,057 Doubtful — — — — — — — — — 144,337 283,178 111,545 108,493 80,689 351,286 11,288 — 1,090,816 Commercial construction Pass 11,225 39,137 25,913 11,342 — — 22,099 — 109,716 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 11,225 39,137 25,913 11,342 — — 22,099 — 109,716 Commercial Pass 218,541 112,545 78,076 53,829 19,043 60,661 93,979 16,334 653,008 Special Mention 52 27,498 11,810 279 2,682 19,495 20,459 21 82,296 Substandard 427 214 4,273 1,824 5,318 3,188 5,845 1,945 23,034 Doubtful — — — — — — — — — 219,020 140,257 94,159 55,932 27,043 83,344 120,283 18,300 758,338 Total loans $ 956,609 $ 965,198 $ 427,762 $ 269,681 $ 251,518 $ 1,221,251 $ 978,579 $ 62,986 $ 5,133,584 Term Loans by Origination Year Revolving Loans (in thousands) 2020 2019 2018 2017 2016 Prior Revolving Converted to term loans Total December 31, 2020 Residential 1-4 family Current $ 567,282 $ 218,988 $ 111,243 $ 203,916 $ 184,888 $ 849,788 $ — $ — $ 2,136,105 30-59 days past due — — — — — 2,629 — — 2,629 60-89 days past due — 476 — — — 2,314 — — 2,790 Greater than 89 days past due — — — 353 — 2,362 — — 2,715 567,282 219,464 111,243 204,269 184,888 857,093 — — 2,144,239 Home equity line of credit Current — — — — — — 927,106 33,228 960,334 30-59 days past due — — — — — — 552 298 850 60-89 days past due — — — — — — 267 75 342 Greater than 89 days past due — — — — — — 1,463 589 2,052 — — — — — — 929,388 34,190 963,578 Residential land Current 8,357 3,427 1,598 939 22 272 — — 14,615 30-59 days past due — — — — — 702 — — 702 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — 300 — — 300 8,357 3,427 1,598 939 22 1,274 — — 15,617 Residential construction Current 6,919 3,093 385 625 — — — — 11,022 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 6,919 3,093 385 625 — — — — 11,022 Consumer Current 28,818 67,159 37,072 7,207 293 348 18,351 3,758 163,006 30-59 days past due 406 1,085 727 155 4 — 138 90 2,605 60-89 days past due 191 549 427 165 3 — 97 59 1,491 Greater than 89 days past due 131 532 409 119 7 — 262 171 1,631 29,546 69,325 38,635 7,646 307 348 18,848 4,078 168,733 Commercial real estate Pass 270,603 63,301 62,168 28,432 55,089 155,654 11,000 — 646,247 Special Mention 10,261 36,405 57,952 33,763 68,287 48,094 — — 254,762 Substandard — 14,720 4,181 1,892 4,423 57,640 — — 82,856 Doubtful — — — — — — — — — 280,864 114,426 124,301 64,087 127,799 261,388 11,000 — 983,865 Commercial construction Pass 14,480 31,965 26,990 — 5,562 — 22,517 — 101,514 Special Mention 1,910 — — 18,000 — — — — 19,910 Substandard — — — — — — — — — Doubtful — — — — — — — — — 16,390 31,965 26,990 18,000 5,562 — 22,517 — 121,424 Commercial Pass 392,088 117,791 75,533 29,211 12,520 35,770 74,520 11,004 748,437 Special Mention 37,836 23,087 1,920 6,990 30,264 13,250 31,362 11,218 155,927 Substandard 304 7,785 2,043 4,017 7,542 3,113 5,265 1,928 31,997 Doubtful — — — — — — 387 — 387 430,228 148,663 79,496 40,218 50,326 52,133 111,534 24,150 936,748 Total loans $ 1,339,586 $ 590,363 $ 382,648 $ 335,784 $ 368,904 $ 1,172,236 $ 1,093,287 $ 62,418 $ 5,345,226 |
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 Total Current Total Amortized cost> September 30, 2021 Real estate: Residential 1-4 family $ 2,224 $ 1,584 $ 8,552 $ 12,360 $ 2,159,713 $ 2,172,073 $ — Commercial real estate — — — — 1,090,816 1,090,816 — Home equity line of credit 255 208 1,455 1,918 849,498 851,416 — Residential land 97 — 300 397 19,002 19,399 — Commercial construction — — — — 109,716 109,716 — Residential construction — — — — 9,170 9,170 — Commercial 937 68 110 1,115 757,223 758,338 — Consumer 1,427 780 1,050 3,257 119,399 122,656 — Total loans $ 4,940 $ 2,640 $ 11,467 $ 19,047 $ 5,114,537 $ 5,133,584 $ — December 31, 2020 Real estate: Residential 1-4 family $ 2,629 $ 2,790 $ 2,715 $ 8,134 $ 2,136,105 $ 2,144,239 $ — Commercial real estate — 488 — 488 983,377 983,865 — Home equity line of credit 850 342 2,052 3,244 960,334 963,578 — Residential land 702 — 300 1,002 14,615 15,617 — Commercial construction — — — — 121,424 121,424 — Residential construction — — — — 11,022 11,022 — Commercial 608 300 132 1,040 935,708 936,748 — Consumer 2,605 1,491 1,631 5,727 163,006 168,733 — Total loans $ 7,394 $ 5,411 $ 6,830 $ 19,635 $ 5,325,591 $ 5,345,226 $ — |
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) September 30, 2021 December 31, 2020 With a Related ACL Without a Related ACL Total With a Related ACL Without a Related ACL Total Real estate: Residential 1-4 family $ 13,307 $ 7,997 $ 21,304 $ 8,991 $ 2,835 $ 11,826 Commercial real estate 15,062 1,251 16,313 15,847 2,875 18,722 Home equity line of credit 4,564 1,364 5,928 5,791 1,567 7,358 Residential land 97 300 397 108 300 408 Commercial construction — — — — — — Residential construction — — — — — — Commercial 1,573 2,080 3,653 1,819 3,328 5,147 Consumer 2,198 — 2,198 3,935 — 3,935 Total $ 36,801 $ 12,992 $ 49,793 $ 36,491 $ 10,905 $ 47,396 The credit risk profile based on loans whose terms have been modified and accruing interest were as follows: (in thousands) September 30, 2021 December 31, 2020 Real estate: Residential 1-4 family $ 7,545 $ 7,932 Commercial real estate 3,136 3,281 Home equity line of credit 6,986 8,148 Residential land 985 1,555 Commercial construction — — Residential construction — — Commercial 7,251 6,108 Consumer 52 54 Total troubled debt restructured loans accruing interest $ 25,955 $ 27,078 |
Schedule of loan modifications | Loan modifications that occurred during the three and nine months ended September 30, 2021 and 2020 were as follows: Loans modified as a TDR Three months ended September 30, 2021 Nine months ended September 30, 2021 (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 $ 442 $ 81 16 $ 10,363 $ 309 Commercial real estate — — — — — — Home equity line of credit — — — — — — Residential land 1 247 11 3 802 37 Commercial construction — — — — — — Residential construction — — — — — — Commercial 1 2,386 212 7 2,678 242 Consumer — — — — — — 3 $ 3,075 $ 304 26 $ 13,843 $ 588 Three months ended September 30, 2020 Nine months ended September 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 $ 146 $ 7 Commercial real estate — — — 2 16,149 4,019 Home equity line of credit — — — 2 22 1 Residential land — — — 2 228 15 Commercial construction — — — — — — Residential construction — — — — — — Commercial 2 52 45 5 207 180 Consumer — — — — — — 2 $ 52 $ 45 12 $ 16,752 $ 4,222 1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included. |
Schedule of collateral-dependent loans | Loans considered collateral-dependent were as follows: Amortized cost (in thousands) September 30, 2021 December 31, 2020 Collateral type Real estate: Residential 1-4 family $ 5,268 $ 2,541 Residential real estate property Commercial real estate 1,251 2,875 Commercial real estate property Home equity line of credit 1,364 1,567 Residential real estate property Residential land 300 300 Residential real estate property Total real estate 8,183 7,283 Commercial 780 934 Business assets Total $ 8,963 $ 8,217 |
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 September 30, 2021 $ 22,182 $ (11,910) $ — $ 10,272 December 31, 2020 22,950 (12,670) (260) 10,020 1 Reflects impact of loans paid in full Changes related to MSRs were as follows: Three months ended September 30, Nine months ended September 30 (in thousands) 2021 2020 2021 2020 Mortgage servicing rights Beginning balance $ 10,754 $ 9,911 $ 10,280 $ 9,101 Amount capitalized 315 1,119 2,885 3,481 Amortization (797) (1,095) (2,893) (2,647) Other-than-temporary impairment — — — — Carrying amount before valuation allowance 10,272 9,935 10,272 9,935 Valuation allowance for mortgage servicing rights Beginning balance — 264 260 — Provision — 118 (260) 382 Other-than-temporary impairment — — — — Ending balance — 382 — 382 Net carrying value of mortgage servicing rights $ 10,272 $ 9,553 $ 10,272 $ 9,553 |
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) September 30, 2021 December 31, 2020 Unpaid principal balance $ 1,521,966 $ 1,450,312 Weighted average note rate 3.42 % 3.68 % Weighted average discount rate 9.25 % 9.25 % Weighted average prepayment speed 11.7 % 17.7 % 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 September 30, 2021 Residential $ 125 Fair value of property or collateral Appraised value less selling cost N/A (2) N/A (2) December 31, 2020 Commercial loan $ 387 Fair value of collateral Appraised value less selling cost N/A (2) N/A (2) Mortgage servicing rights 3,001 Discounted cash flow Prepayment speed 15% - 22% 22 % Discount rate 9.3 % (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) September 30, 2021 December 31, 2020 Prepayment rate: 25 basis points adverse rate change $ (1,045) $ (738) 50 basis points adverse rate change (2,209) (1,445) Discount rate: 25 basis points adverse rate change (115) (68) 50 basis points adverse rate change (229) (135) |
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 September 30, 2021 $ 129 $ — $ 129 December 31, 2020 90 — 90 Gross amount not offset in the Balance Sheets (in millions) Net amount of liabilities presented Financial Cash Commercial account holders September 30, 2021 $ 129 $ 146 $ — December 31, 2020 90 92 — |
Schedule of notional and fair value of derivatives | The notional amount and fair value of ASB’s derivative financial instruments were as follows: September 30, 2021 December 31, 2020 (in thousands) Notional amount Fair value Notional amount Fair value Interest rate lock commitments $ 22,289 $ 308 $ 120,980 $ 4,536 Forward commitments 21,750 109 100,500 (500) |
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 September 30, 2021 December 31, 2020 (in thousands) Asset derivatives Liability Asset derivatives Liability Interest rate lock commitments $ 308 $ — $ 4,536 $ — Forward commitments 121 12 — 500 $ 429 $ 12 $ 4,536 $ 500 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 September 30, Nine months ended September 30 (in thousands) 2021 2020 2021 2020 Interest rate lock commitments Mortgage banking income $ (63) $ 2,930 $ (4,228) $ 4,974 Forward commitments Mortgage banking income 150 44 609 (201) $ 87 $ 2,974 $ (3,619) $ 4,773 |
Credit agreements and changes_2
Credit agreements and changes in long-term debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of notes | The following table displays the required draw date of the HEI notes. HEI Series 2021A HEI Series 2021B HEI Series 2021C HEI Series 2022A HEI Series 2022B Aggregate principal amount $30 million $25 million $20 million $30 million $20 million Fixed coupon interest rate 2.48% 2.78% 3.74% 2.98% 3.94% Maturity date 12/29/2028 12/29/2031 12/29/2051 11/15/2032 11/15/2052 Final draw date 12/29/2021 12/29/2021 12/29/2021 11/15/2022 11/15/2022 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020 $ 19,986 $ (3,363) $ (17,887) $ (1,264) $ (2,919) Current period other comprehensive income (loss) (40,308) 1,009 450 (38,849) 175 Balance, September 30, 2021 $ (20,322) $ (2,354) $ (17,437) $ (40,113) $ (2,744) Balance, December 31, 2019 $ 2,481 $ (1,613) $ (20,907) $ (20,039) $ (1,279) Current period other comprehensive income (loss) 19,767 (2,129) 1,682 19,320 99 Balance, September 30, 2020 $ 22,248 $ (3,742) $ (19,225) $ (719) $ (1,180) |
Schedule of reclassifications out of accumulated other comprehensive income/(loss) | Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Affected line item in the Three months ended September 30 Nine months ended September 30 2021 2020 2021 2020 (in thousands) HEI consolidated Net realized gains on securities included in net income $ — $ — $ (387) $ (1,638) Gain on sale of investment securities, net Net realized losses on derivatives qualifying as cash flow hedges 9 — 9 — Interest expense Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 2,853 6,324 14,871 17,720 See Note 8 for additional details Impact of D&Os of the PUC included in regulatory assets (2,799) (5,721) (14,421) (16,038) See Note 8 for additional details Total reclassifications $ 63 $ 603 $ 72 $ 44 Hawaiian Electric consolidated Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost $ 2,905 $ 5,769 $ 14,596 $ 16,137 See Note 8 for additional details Impact of D&Os of the PUC included in regulatory assets (2,799) (5,721) (14,421) (16,038) See Note 8 for additional details Total reclassifications $ 106 $ 48 $ 175 $ 99 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 Nine months ended September 30, 2021 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 228,878 $ — $ — $ 228,878 $ 606,435 $ — $ — $ 606,435 Electric energy sales - commercial 217,468 — — 217,468 578,036 — — 578,036 Electric energy sales - large light and power 229,129 — — 229,129 607,480 — — 607,480 Electric energy sales - other 2,779 — — 2,779 7,470 — — 7,470 Bank fees — 11,186 — 11,186 — 34,133 — 34,133 Other sales — — 1,178 1,178 — — 3,191 3,191 Total revenues from contracts with customers 678,254 11,186 1,178 690,618 1,799,421 34,133 3,191 1,836,745 Revenues from other sources Regulatory revenue $ (5,717) $ — $ — $ (5,717) $ 25,566 $ — $ — $ 25,566 Bank interest and dividend income — 61,441 — 61,441 — 182,127 — 182,127 Other bank noninterest income — 3,581 — 3,581 — 14,339 — 14,339 Other 6,962 — 19 6,981 21,255 — 75 21,330 Total revenues from other sources 1,245 65,022 19 66,286 46,821 196,466 75 243,362 Total revenues $ 679,499 $ 76,208 $ 1,197 $ 756,904 $ 1,846,242 $ 230,599 $ 3,266 $ 2,080,107 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 11,186 $ — $ 11,186 $ — $ 34,133 $ — $ 34,133 Services/goods transferred over time 678,254 — 1,178 679,432 1,799,421 — 3,191 1,802,612 Total revenues from contracts with customers $ 678,254 $ 11,186 $ 1,178 $ 690,618 $ 1,799,421 $ 34,133 $ 3,191 $ 1,836,745 Three months ended September 30, 2020 Nine months ended September 30, 2020 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 191,321 $ — $ — $ 191,321 $ 569,177 $ — $ — $ 569,177 Electric energy sales - commercial 171,156 — — 171,156 528,135 — — 528,135 Electric energy sales - large light and power 176,200 — — 176,200 568,887 — — 568,887 Electric energy sales - other 1,935 — — 1,935 7,172 — — 7,172 Bank fees — 9,589 — 9,589 — 28,356 — 28,356 Other sales — — 211 211 — — 240 240 Total revenues from contracts with customers 540,612 9,589 211 550,412 1,673,371 28,356 240 1,701,967 Revenues from other sources Regulatory revenue 15,457 — — 15,457 2,979 — — 2,979 Bank interest and dividend income — 59,640 — 59,640 — 184,444 — 184,444 Other bank noninterest income — 9,415 — 9,415 — 20,296 — 20,296 Other 6,499 — 4 6,503 17,875 — (3) 17,872 Total revenues from other sources 21,956 69,055 4 91,015 20,854 204,740 (3) 225,591 Total revenues $ 562,568 $ 78,644 $ 215 $ 641,427 $ 1,694,225 $ 233,096 $ 237 $ 1,927,558 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 9,589 $ — $ 9,589 $ — $ 28,356 $ — $ 28,356 Services/goods transferred over time 540,612 — 211 540,823 1,673,371 — 240 1,673,611 Total revenues from contracts with customers $ 540,612 $ 9,589 $ 211 $ 550,412 $ 1,673,371 $ 28,356 $ 240 $ 1,701,967 |
Retirement benefits (Tables)
Retirement benefits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30 Nine months ended September 30 Pension benefits Other benefits Pension benefits Other benefits 2021 2020 2021 2020 2021 2020 2021 2020 (in thousands) HEI consolidated Service cost $ 20,102 $ 18,341 $ 711 $ 641 $ 61,031 $ 55,066 $ 2,121 $ 1,903 Interest cost 18,896 20,660 1,459 1,842 56,497 60,987 4,597 5,553 Expected return on plan assets (33,022) (28,422) (3,252) (3,023) (99,157) (85,353) (9,717) (9,100) Amortization of net prior period (gain)/cost — 2 (383) (474) — 7 (1,150) (1,355) Amortization of net actuarial (gain)/losses 1 10,112 8,944 (140) 53 20,099 25,059 158 154 Net periodic pension/benefit cost (return) 16,088 19,525 (1,605) (961) 38,470 55,766 (3,991) (2,845) Impact of PUC D&Os 4,292 4,976 1,483 835 20,972 17,499 3,629 2,389 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 20,380 $ 24,501 $ (122) $ (126) $ 59,442 $ 73,265 $ (362) $ (456) Hawaiian Electric consolidated Service cost $ 19,610 $ 17,921 $ 704 $ 635 $ 59,597 $ 53,703 $ 2,101 $ 1,886 Interest cost 17,614 19,183 1,398 1,764 52,676 56,613 4,406 5,327 Expected return on plan assets (31,318) (26,815) (3,202) (2,986) (94,053) (80,527) (9,566) (8,966) Amortization of net prior period (gain)/cost — 1 (383) (474) — 6 (1,148) (1,353) Amortization of net actuarial (gain)/losses 1 9,880 8,188 (138) 53 20,651 22,925 155 155 Net periodic pension/benefit cost (return) 15,786 18,478 (1,621) (1,008) 38,871 52,720 (4,052) (2,951) Impact of PUC D&Os 4,292 4,976 1,483 835 20,972 17,499 3,629 2,389 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 20,078 $ 23,454 $ (138) $ (173) $ 59,843 $ 70,219 $ (423) $ (562) 1 Nine months ended September 30, 2021 amounts include the one-time cumulative impact of the change in accounting principle for the plans’ fixed income securities from the calculated market-related value method to the fair value method, which was recorded in the first quarter of 2021. |
Share-based compensation (Table
Share-based compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30 Nine months ended September 30 (in millions) 2021 2020 2021 2020 HEI consolidated Share-based compensation expense 1 $ 1.3 $ 1.4 $ 6.7 $ 5.4 Income tax benefit 0.1 0.2 1.0 0.9 Hawaiian Electric consolidated Share-based compensation expense 1 0.1 — 2.1 1.2 Income tax benefit — — 0.4 0.3 1 For the three and nine months ended September 30, 2021 and 2020, 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 September 30 Nine months ended September 30 (dollars in millions) 2021 2020 2021 2020 Shares granted — — 29,320 36,100 Fair value $ — $ — $ 1.2 $ 1.3 Income tax benefit — — 0.3 0.3 |
Schedule of restricted stock units | Information about HEI’s grants of restricted stock units was as follows: Three months ended September 30 Nine months ended September 30 2021 2020 2021 2020 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 229,775 $ 38.02 204,357 $ 40.65 193,939 $ 40.89 207,641 $ 35.36 Granted 1,432 45.09 — — 133,924 34.49 78,595 47.99 Vested (343) 37.83 — — (79,623) 38.51 (77,719) 34.19 Forfeited (1,074) 38.52 — — (18,450) 39.92 (4,160) 35.81 Outstanding, end of period 229,790 $ 38.06 204,357 $ 40.65 229,790 $ 38.06 204,357 $ 40.65 Total weighted-average grant-date fair value of shares granted (in millions) $ 0.1 $ — $ 4.6 $ 3.8 |
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 September 30 Nine months ended September 30 2021 2020 2021 2020 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 91,159 $ 42.87 90,616 $ 42.08 89,222 $ 42.10 96,402 $ 39.62 Granted 281 41.12 — — 46,024 41.12 24,630 48.62 Vested (issued or unissued and cancelled) — — — — (32,355) 38.20 (29,409) 39.51 Forfeited (466) 42.49 — — (11,917) 43.07 (1,007) 41.72 Outstanding, end of period 90,974 $ 42.86 90,616 $ 42.08 90,974 $ 42.86 90,616 $ 42.08 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ — $ 1.9 $ 1.2 |
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: 2021 2020 Risk-free interest rate 0.19 % 1.39 % Expected life in years 3 3 Expected volatility 29.9 % 13.1 % Range of expected volatility for Peer Group 25.6% to 102.9% 13.6% to 95.4% Grant date fair value (per share) $41.12 $48.62 |
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 September 30 Nine months ended September 30 2021 2020 2021 2020 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 316,005 $ 38.38 297,523 $ 40.37 220,715 $ 41.03 403,768 $ 35.15 Granted 1,125 41.12 — — 184,102 34.37 98,522 48.10 Vested — — — — (43,155) 34.12 (135,804) 33.48 Increase above target (cancelled) (22,354) 37.81 (21,807) 34.11 (21,077) 38.18 (86,739) 34.12 Forfeited (1,865) 36.77 — — (47,674) 38.74 (4,031) 39.67 Outstanding, end of period 292,911 $ 38.45 275,716 $ 40.86 292,911 $ 38.45 275,716 $ 40.86 Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) $ — $ — $ 6.3 $ 4.7 |
Cash flows (Tables)
Cash flows (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash and noncash activity | Nine months ended September 30 2021 2020 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates, net of amounts capitalized $ 61 $ 64 Income taxes paid (including refundable credits) 34 23 Hawaiian Electric consolidated Interest paid to non-affiliates 43 39 Income taxes paid (including refundable credits) 20 29 Supplemental disclosures of noncash activities HEI consolidated Property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 5 9 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 30 32 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) 44 22 Common stock issued (gross) for director and executive/management compensation (financing) 1 7 16 Obligations to fund low income housing investments (investing) 9 10 Loans transferred from held for investment to held for sale (investing) 62 — Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 5 9 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 27 28 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) 44 16 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) | 9 Months Ended |
Sep. 30, 2021 | |
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. Estimated fair value (in thousands) Carrying or notional amount Quoted prices in Significant Significant Total September 30, 2021 Financial assets HEI consolidated Available-for-sale investment securities $ 2,580,830 $ — $ 2,565,403 $ 15,427 $ 2,580,830 Held-to-maturity investment securities 491,871 — 484,654 — 484,654 Loans, net 5,100,178 — 54,537 5,167,221 5,221,758 Mortgage servicing rights 10,272 — — 13,712 13,712 Derivative assets 53,789 121 494 — 615 Financial liabilities HEI consolidated Deposit liabilities 444,897 — 445,401 — 445,401 Short-term borrowings—other than bank 92,246 — 92,246 — 92,246 Other bank borrowings 129,305 — 129,304 — 129,304 Long-term debt, net—other than bank 2,244,795 — 2,588,972 — 2,588,972 Derivative liabilities 27,250 12 3,456 — 3,468 Hawaiian Electric consolidated Short-term borrowings — — — — — Long-term debt, net 1,676,223 — 1,987,933 — 1,987,933 December 31, 2020 Financial assets HEI consolidated Available-for-sale investment securities $ 1,970,417 $ — $ 1,943,232 $ 27,185 $ 1,970,417 Held-to-maturity investment securities 226,947 — 229,963 — 229,963 Loans, net 5,260,917 — 28,354 5,410,976 5,439,330 Mortgage servicing rights 10,020 — — 10,705 10,705 Derivative assets 120,980 — 4,536 — 4,536 Financial liabilities HEI consolidated Deposit liabilities 548,830 — 552,800 — 552,800 Short-term borrowings—other than bank 129,379 — 129,379 — 129,379 Other bank borrowings 89,670 — 89,669 — 89,669 Long-term debt, net—other than bank 2,119,129 — 2,487,790 — 2,487,790 Derivative liabilities 137,500 500 4,530 — 5,030 Hawaiian Electric consolidated Short-term borrowings 49,979 — 49,979 — 49,979 Long-term debt, net 1,561,302 — 1,890,490 — 1,890,490 |
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: September 30, 2021 December 31, 2020 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 $ — $ 2,441,683 $ — $ — $ 1,849,559 $ — U.S. Treasury and federal agency obligations — 92,075 — — 62,322 — Corporate bonds — 31,645 — — 31,351 — Mortgage revenue bonds — — 15,427 — — 27,185 $ — $ 2,565,403 $ 15,427 $ — $ 1,943,232 $ 27,185 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 308 $ — $ — $ 4,536 $ — Forward commitments (bank segment) 1 121 — — — — — Interest rate swap (Other segment) 2 — 186 — — — — $ 121 $ 494 $ — $ — $ 4,536 $ — Derivative liabilities Forward commitments (bank segment) 1 $ 12 $ — $ — $ 500 $ — $ — Interest rate swap (Other segment) 2 — 3,456 — — 4,530 — $ 12 $ 3,456 $ — $ 500 $ 4,530 $ — 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 assets and 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 September 30 Nine months ended September 30 Mortgage revenue bonds 2021 2020 2021 2020 (in thousands) Beginning balance $ 15,427 $ 28,827 $ 27,185 $ 28,597 Principal payments received — (1,642) (11,758) (1,642) Purchases — — — 230 Unrealized gain (loss) included in other comprehensive income — — — — Ending balance $ 15,427 $ 27,185 $ 15,427 $ 27,185 |
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 September 30, 2021 Loans $ 125 $ — $ — $ 125 December 31, 2020 Loans 387 — — 387 Mortgage servicing rights 3,001 — — 3,001 |
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) September 30, 2021 December 31, 2020 Unpaid principal balance $ 1,521,966 $ 1,450,312 Weighted average note rate 3.42 % 3.68 % Weighted average discount rate 9.25 % 9.25 % Weighted average prepayment speed 11.7 % 17.7 % 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 September 30, 2021 Residential $ 125 Fair value of property or collateral Appraised value less selling cost N/A (2) N/A (2) December 31, 2020 Commercial loan $ 387 Fair value of collateral Appraised value less selling cost N/A (2) N/A (2) Mortgage servicing rights 3,001 Discounted cash flow Prepayment speed 15% - 22% 22 % Discount rate 9.3 % (1) Represents percent of outstanding principal balance. (2) N/A - Not applicable. There is one asset in each fair value measurement type. |
Segment financial information_2
Segment financial information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Segment financial information | |||||||||
Revenues | $ 756,904 | $ 641,427 | $ 2,080,107 | $ 1,927,558 | |||||
Income (loss) before income taxes | 78,151 | 79,521 | 241,291 | 179,447 | |||||
Income taxes (benefit) | 14,265 | 14,018 | 48,229 | 30,691 | |||||
Net income | 63,886 | 65,503 | 193,062 | 148,756 | |||||
Preferred stock dividends of subsidiaries | 471 | 471 | 1,417 | 1,417 | |||||
Net income for common stock | 63,415 | $ 63,872 | $ 64,358 | 65,032 | $ 48,887 | $ 33,420 | 191,645 | 147,339 | |
Total assets | 15,760,163 | 15,760,163 | $ 15,004,007 | ||||||
Revenues from external customers | |||||||||
Segment financial information | |||||||||
Revenues | 756,904 | 641,427 | 2,080,107 | 1,927,558 | |||||
Intersegment revenues (eliminations) | |||||||||
Segment financial information | |||||||||
Revenues | 0 | 0 | 0 | 0 | |||||
Electric utility | |||||||||
Segment financial information | |||||||||
Revenues | 679,499 | 562,568 | 1,846,242 | 1,694,225 | |||||
Income (loss) before income taxes | 61,175 | 74,398 | 170,163 | 157,111 | |||||
Income taxes (benefit) | 10,335 | 13,835 | 33,066 | 29,316 | |||||
Net income | 50,840 | 60,563 | 137,097 | 127,795 | |||||
Preferred stock dividends of subsidiaries | 498 | 498 | 1,496 | 1,496 | |||||
Net income for common stock | 50,342 | 60,065 | 135,601 | 126,299 | |||||
Total assets | 6,602,908 | 6,602,908 | 6,457,373 | ||||||
Electric utility | Revenues from external customers | |||||||||
Segment financial information | |||||||||
Revenues | 679,482 | 562,559 | 1,846,206 | 1,694,195 | |||||
Electric utility | Intersegment revenues (eliminations) | |||||||||
Segment financial information | |||||||||
Revenues | 17 | 9 | 36 | 30 | |||||
Bank | |||||||||
Segment financial information | |||||||||
Revenues | 76,208 | 78,644 | 230,599 | 233,096 | |||||
Income (loss) before income taxes | 25,241 | 15,027 | 102,335 | 51,330 | |||||
Income taxes (benefit) | 5,976 | 2,877 | 23,230 | 9,405 | |||||
Net income | 19,265 | 12,150 | 79,105 | 41,925 | |||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 | |||||
Net income for common stock | 19,265 | 12,150 | 79,105 | 41,925 | |||||
Total assets | 9,010,419 | 9,010,419 | |||||||
Bank | Revenues from external customers | |||||||||
Segment financial information | |||||||||
Revenues | 76,208 | 78,644 | 230,599 | 233,096 | |||||
Bank | Intersegment revenues (eliminations) | |||||||||
Segment financial information | |||||||||
Revenues | 0 | 0 | 0 | 0 | |||||
Other | |||||||||
Segment financial information | |||||||||
Revenues | 1,197 | 215 | 3,266 | 237 | |||||
Income (loss) before income taxes | (8,265) | (9,904) | (31,207) | (28,994) | |||||
Income taxes (benefit) | (2,046) | (2,694) | (8,067) | (8,030) | |||||
Net income | (6,219) | (7,210) | (23,140) | (20,964) | |||||
Preferred stock dividends of subsidiaries | (27) | (27) | (79) | (79) | |||||
Net income for common stock | (6,192) | (7,183) | (23,061) | (20,885) | |||||
Total assets | 146,836 | 146,836 | $ 150,101 | ||||||
Other | Revenues from external customers | |||||||||
Segment financial information | |||||||||
Revenues | 1,214 | 224 | 3,302 | 267 | |||||
Other | Intersegment revenues (eliminations) | |||||||||
Segment financial information | |||||||||
Revenues | $ (17) | $ (9) | $ (36) | $ (30) |
Electric utility segment - Unco
Electric utility segment - Unconsolidated variable interest entities (Details) | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2021MW | Mar. 31, 2021MW | Sep. 30, 2021agreemententity | |
Power purchase agreement | |||
Number of IPPs (in entities) | entity | 3 | ||
Puna Geothermal Venture Power Purchase Agreement | |||
Power purchase agreement | |||
Firm capacity volume (in megawatts) | MW | 23.9 | 13 | |
Hawaiian Electric Company | |||
Power purchase agreement | |||
Number of power purchase agreements (PPAs) (in agreements) | agreement | 5 |
Electric utility segment - Powe
Electric utility segment - Power purchase agreements (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Oct. 31, 2021 | Jul. 31, 2018MW | May 31, 2012MW | Mar. 31, 1988MW | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)MW | Sep. 30, 2020USD ($) | Dec. 31, 1988MW | |
Kalaeloa | Subsequent Event | |||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||
Purchase commitment, extension period | 10 years | ||||||||
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 | ||||||||
Molokai New Energy Partners | |||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||
Total contracted PV capacity (in megawatts) | MW | 4.88 | ||||||||
Total contracted battery energy storage system capacity | MW | 3 | ||||||||
Maximum power volume to be delivered (in megawatts) | MW | 2.64 | ||||||||
Hawaiian Electric, Parent | |||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||
Purchased power | $ 186 | $ 149 | $ 491 | $ 426 | |||||
Hawaiian Electric, Parent | Kalaeloa | |||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||
Purchased power | 56 | 39 | 142 | 111 | |||||
Increased power purchase commitment capacity (in megawatts) | MW | 208 | ||||||||
Hawaiian Electric, Parent | AES Hawaii | |||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||
Purchased power | 32 | 33 | 98 | 96 | |||||
Hawaiian Electric, Parent | HPOWER | |||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||
Purchased power | 20 | 18 | 51 | 52 | |||||
Hawaiian Electric, Parent | Hamakua Energy | |||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||
Purchased power | 15 | 12 | 38 | 36 | |||||
Hawaiian Electric, Parent | Puna Geothermal Venture | |||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||
Purchased power | 9 | 0 | 20 | 0 | |||||
Hawaiian Electric, Parent | Wind IPPs | |||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||
Purchased power | 38 | 30 | 95 | 83 | |||||
Hawaiian Electric, Parent | Solar IPPs | |||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||
Purchased power | 12 | 17 | 40 | 45 | |||||
Hawaiian Electric, Parent | Other IPPs | |||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||
Purchased power | $ 4 | $ 0 | $ 7 | $ 3 |
Electric utility segment - Util
Electric utility segment - Utility projects (Details) - USD ($) $ in Millions | Jun. 10, 2019 | Nov. 30, 2020 | Jan. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2020 |
ERP/EAM Implementation Project | |||||
Public Utilities, General Disclosures [Line Items] | |||||
ERP/EAM project service period (in years) | 12 years | ||||
Future O&M expense reductions | $ 150 | ||||
Future cost avoidance related to capital cost and tax costs | $ 96 | ||||
Hawaiian Electric, Parent | PCB Contamination | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Valuation allowances and reserves | $ 10.4 | ||||
Hawaiian Electric, Parent | ERP/EAM Implementation Project | |||||
Public Utilities, General Disclosures [Line Items] | |||||
ERP/EAM project service period (in years) | 12 years | ||||
Regulatory liability for O&M expense reductions | 5.8 | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | ERP/EAM Implementation Project | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Regulatory liability for O&M expense reductions | 9.9 | ||||
HELCO | ERP/EAM Implementation Project | |||||
Public Utilities, General Disclosures [Line Items] | |||||
ERP/EAM project service period (in years) | 12 years | ||||
Regulatory liability for O&M expense reductions | 1.6 | ||||
Regulatory liability to be flowed through to customers | $ 1.6 | ||||
Maui Electric | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Additional accrued investigation and estimated cleanup costs | 2.7 | ||||
Maui Electric | ERP/EAM Implementation Project | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Regulatory liability for O&M expense reductions | $ 2.5 | ||||
Regulatory liability, amortization period | 5 years | ||||
Regulatory liability to be flowed through to customers | $ 2.3 |
Electric utility segment - Regu
Electric utility segment - Regulatory proceedings (Details) | May 26, 2021USD ($) | Feb. 16, 2021agreement | Dec. 23, 2020USD ($) | Sep. 15, 2020agreement | Apr. 27, 2017USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2021USD ($)MWhproject | Dec. 31, 2019USD ($)agreement | Jun. 01, 2021mechanism | Mar. 23, 2021mechanism | Jul. 09, 2020entity |
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Propose pilots annual cap | $ 10,000,000 | ||||||||||
Potential total annual maximum reward | $ 2,000,000 | ||||||||||
Advanced metering infrastructure term | 3 years | ||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Customer dividend, negative adjustment percentage | 0.22% | ||||||||||
Savings commitment liability, annual rate | $ 6,600,000 | ||||||||||
ERP system benefits savings liability | $ 3,900,000 | ||||||||||
Earnings sharing mechanism, actual return on equity, dead band percentage above or below target | 3.00% | ||||||||||
Approved return on equity, percentage | 9.50% | ||||||||||
Earnings sharing mechanism, actual earning, above or below dead band | 1.50% | ||||||||||
Threshold of capital expenditures in excess of customer contributions for qualification for major project interim recovery | $ 2,500,000 | ||||||||||
MPIR requested amount | $ 21,800,000 | ||||||||||
Number of projects | project | 8 | ||||||||||
Estimated capital costs | $ 324,000,000 | ||||||||||
Decoupling order, service reliability performance, historical measurement period (in years) | 10 years | ||||||||||
Maximum penalty, percent of ROE | 0.20% | ||||||||||
Service reliability, pending adjusted maximum penalty amount | $ 6,800,000 | ||||||||||
Dead band percentage above or below the target | 3.00% | ||||||||||
Call center performance, maximum penalty percentage | 0.08% | ||||||||||
Call center performance, pending adjusted maximum penalty | $ 1,400,000 | ||||||||||
Call center performance, maximum penalty amount | $ 900,000 | ||||||||||
Number of power purchase agreements (PPAs) (in agreements) | agreement | 1 | 8 | 7 | ||||||||
Incentives accrued | $ 100,000 | $ 1,700,000 | |||||||||
Number of grid service purchase agreements | entity | 2 | ||||||||||
Number of power purchase agreements qualifying for potential payout | agreement | 1 | ||||||||||
Number of performance incentive mechanisms | mechanism | 3 | 2 | |||||||||
Interpolated RPS rate goal, year one and two (dollars per MWh) | MWh | 20 | ||||||||||
Interpolated RPS rate goal, year three (dollars per MWh) | MWh | 15 | ||||||||||
Interpolated RPS rate goal, after year three (dollars per MWh) | MWh | 10 | ||||||||||
Failure to meet RPS targets, penalty rate (dollars per MWh) | MWh | 20 | ||||||||||
Potential total annual maximum reward | $ 1,500,000 | ||||||||||
Potential total annual maximum reward | 3,000,000 | ||||||||||
Total annual maximum penalty | 900,000 | ||||||||||
Performance incentive mechanism, maximum reward | $ 2,000,000 | ||||||||||
Performance incentive mechanism, term | 3 years | ||||||||||
Schofield Generation Station | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
MPIR requested amount | 17,600,000 | ||||||||||
West Loch PV Project | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
MPIR requested amount | 3,300,000 | ||||||||||
Grid Modernization Strategy Phase 1 Project | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
MPIR requested amount | $ 900,000 |
Electric utility segment - Annu
Electric utility segment - Annual decoupling filings summary (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Regulatory Projects and Legal Obligations [Line Items] | |
2022 ARA revenues | $ 29.5 |
Management Audit savings commitment | (6.6) |
Net 2022 ARA revenues | 22.9 |
Incremental RAM revenues and ARA revenues | 61.5 |
Incremental accrued RBA balance through September 30, 2021 (and associated revenue taxes) | 24.3 |
Incremental Performance Incentive Mechanisms (net) | 0.1 |
Incremental MPIR/EPRM Revenue Adjustment | 10.4 |
Net incremental amount to be collected under the RBA rate tariffs | 96.2 |
Hawaiian Electric, Parent | |
Regulatory Projects and Legal Obligations [Line Items] | |
2022 ARA revenues | 19.8 |
Management Audit savings commitment | (4.6) |
Net 2022 ARA revenues | 15.2 |
Incremental RAM revenues and ARA revenues | 41.7 |
Incremental accrued RBA balance through September 30, 2021 (and associated revenue taxes) | 21.9 |
Incremental Performance Incentive Mechanisms (net) | 0 |
Incremental MPIR/EPRM Revenue Adjustment | 9.8 |
Net incremental amount to be collected under the RBA rate tariffs | 73.4 |
Hawaii Electric Light | |
Regulatory Projects and Legal Obligations [Line Items] | |
2022 ARA revenues | 4.9 |
Management Audit savings commitment | (1) |
Net 2022 ARA revenues | 3.9 |
Incremental RAM revenues and ARA revenues | 8.9 |
Incremental accrued RBA balance through September 30, 2021 (and associated revenue taxes) | 2.5 |
Incremental Performance Incentive Mechanisms (net) | 0 |
Incremental MPIR/EPRM Revenue Adjustment | 0.3 |
Net incremental amount to be collected under the RBA rate tariffs | 11.7 |
Maui Electric | |
Regulatory Projects and Legal Obligations [Line Items] | |
2022 ARA revenues | 4.8 |
Management Audit savings commitment | (1) |
Net 2022 ARA revenues | 3.8 |
Incremental RAM revenues and ARA revenues | 10.9 |
Incremental accrued RBA balance through September 30, 2021 (and associated revenue taxes) | (0.1) |
Incremental Performance Incentive Mechanisms (net) | 0.1 |
Incremental MPIR/EPRM Revenue Adjustment | 0.3 |
Net incremental amount to be collected under the RBA rate tariffs | $ 11.1 |
Electric utility segment - Most
Electric utility segment - Most recent rate proceedings (Details) - USD ($) $ in Thousands | Oct. 22, 2020 | Jul. 28, 2020 | Sep. 30, 2021 | Dec. 31, 2020 |
Regulatory Projects and Legal Obligations [Line Items] | ||||
Regulatory assets | $ 757,204 | $ 766,708 | ||
Unionized Employees Concentration Risk | Workforce Subject to Collective Bargaining Arrangements Expiring within One Year | International Brotherhood Of Electrical Workers, AFL-CIO, Local 1260 | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Concentration risk percentage | 47.00% | |||
Hawaiian Electric, Parent | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Common equity capitalization rate | 58.00% | |||
Stipulated ROACE rate | 9.50% | |||
Effective interest rate of return | 7.37% | |||
Hawaii Electric Light | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Common equity capitalization rate | 58.00% | |||
Stipulated ROACE rate | 9.50% | |||
Effective interest rate of return | 7.52% | |||
Amortization period for state investment tax credit | 10 years | |||
Risk sharing percentage, ratepayer | 98.00% | |||
Risk sharing percentage, utility | 2.00% | |||
Maximum exposure cap | $ 600 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Regulatory assets | $ 28,700 |
Electric utility segment - Cond
Electric utility segment - Condensed consolidating statement of income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | $ 756,904 | $ 641,427 | $ 2,080,107 | $ 1,927,558 | ||||
Expenses | ||||||||
Total expenses | 659,588 | 541,866 | 1,782,904 | 1,696,739 | ||||
Total operating income | 97,316 | 99,561 | 297,203 | 230,819 | ||||
Allowance for equity funds used during construction | 2,427 | 2,347 | 6,995 | 6,556 | ||||
Retirement defined benefits credit (expense)—other than service costs | 1,058 | (1,102) | 4,709 | (2,970) | ||||
Allowance for borrowed funds used during construction | 827 | 801 | 2,386 | 2,241 | ||||
Income before income taxes | 78,151 | 79,521 | 241,291 | 179,447 | ||||
Income taxes | 14,265 | 14,018 | 48,229 | 30,691 | ||||
Net income | 63,886 | 65,503 | 193,062 | 148,756 | ||||
Preferred stock dividends of subsidiaries | 471 | 471 | 1,417 | 1,417 | ||||
Net income for common stock | 63,415 | $ 63,872 | $ 64,358 | 65,032 | $ 48,887 | $ 33,420 | 191,645 | 147,339 |
Consolidating adjustments | ||||||||
Expenses | ||||||||
Total expenses | 0 | |||||||
Hawaiian Electric Consolidated | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 679,499 | 562,568 | 1,846,242 | 1,694,225 | ||||
Expenses | ||||||||
Fuel oil | 180,682 | 105,042 | 447,245 | 390,714 | ||||
Purchased power | 185,759 | 149,025 | 490,520 | 425,679 | ||||
Other operation and maintenance | 116,468 | 111,243 | 349,180 | 348,831 | ||||
Depreciation | 57,386 | 55,689 | 172,122 | 167,235 | ||||
Taxes, other than income taxes | 64,012 | 53,051 | 175,185 | 161,489 | ||||
Total expenses | 604,307 | 474,050 | 1,634,252 | 1,493,948 | ||||
Total operating income | 75,192 | 88,518 | 211,990 | 200,277 | ||||
Allowance for equity funds used during construction | 2,427 | 2,347 | 6,995 | 6,556 | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Retirement defined benefits credit (expense)—other than service costs | 877 | (432) | 2,918 | (1,195) | ||||
Interest expense and other charges, net | (18,148) | (16,836) | (54,126) | (50,768) | ||||
Allowance for borrowed funds used during construction | 827 | 801 | 2,386 | 2,241 | ||||
Income before income taxes | 61,175 | 74,398 | 170,163 | 157,111 | ||||
Income taxes | 10,335 | 13,835 | 33,066 | 29,316 | ||||
Net income | 50,840 | 60,563 | 137,097 | 127,795 | ||||
Preferred stock dividends of subsidiaries | 228 | 228 | 686 | 686 | ||||
Net income attributable to Hawaiian Electric | 50,612 | 60,335 | 136,411 | 127,109 | ||||
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 810 | 810 | ||||
Net income for common stock | 50,342 | $ 41,901 | $ 43,358 | 60,065 | $ 42,329 | $ 23,905 | 135,601 | 126,299 |
Hawaiian Electric Consolidated | Reportable Legal Entities | Hawaiian Electric Industries, Inc. | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 478,046 | 398,877 | 1,301,297 | 1,200,677 | ||||
Expenses | ||||||||
Fuel oil | 126,909 | 70,557 | 306,982 | 268,382 | ||||
Purchased power | 136,688 | 116,249 | 370,240 | 333,146 | ||||
Other operation and maintenance | 75,191 | 71,179 | 230,429 | 231,090 | ||||
Depreciation | 38,912 | 37,853 | 116,733 | 113,724 | ||||
Taxes, other than income taxes | 45,239 | 38,005 | 124,167 | 115,179 | ||||
Total expenses | 422,939 | 333,843 | 1,148,551 | 1,061,521 | ||||
Total operating income | 55,107 | 65,034 | 152,746 | 139,156 | ||||
Allowance for equity funds used during construction | 1,999 | 1,902 | 5,677 | 5,452 | ||||
Equity in earnings of subsidiaries | 12,028 | 14,912 | 35,282 | 37,492 | ||||
Retirement defined benefits credit (expense)—other than service costs | 741 | (591) | 2,511 | (1,683) | ||||
Interest expense and other charges, net | (12,943) | (11,970) | (38,604) | (36,471) | ||||
Allowance for borrowed funds used during construction | 676 | 659 | 1,921 | 1,887 | ||||
Income before income taxes | 57,608 | 69,946 | 159,533 | 145,833 | ||||
Income taxes | 6,996 | 9,611 | 23,122 | 18,724 | ||||
Net income | 50,612 | 60,335 | 136,411 | 127,109 | ||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income attributable to Hawaiian Electric | 50,612 | 60,335 | 136,411 | 127,109 | ||||
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 810 | 810 | ||||
Net income for common stock | 50,342 | 60,065 | 135,601 | 126,299 | ||||
Hawaiian Electric Consolidated | Reportable Legal Entities | Hawaii Electric Light | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 100,313 | 82,172 | 276,974 | 249,970 | ||||
Expenses | ||||||||
Fuel oil | 21,104 | 17,047 | 57,175 | 55,733 | ||||
Purchased power | 31,159 | 17,665 | 76,992 | 53,032 | ||||
Other operation and maintenance | 19,964 | 17,565 | 57,350 | 54,250 | ||||
Depreciation | 10,050 | 9,760 | 30,151 | 29,281 | ||||
Taxes, other than income taxes | 9,333 | 7,512 | 25,865 | 23,324 | ||||
Total expenses | 91,610 | 69,549 | 247,533 | 215,620 | ||||
Total operating income | 8,703 | 12,623 | 29,441 | 34,350 | ||||
Allowance for equity funds used during construction | 131 | 208 | 403 | 520 | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Retirement defined benefits credit (expense)—other than service costs | 166 | 194 | 503 | 581 | ||||
Interest expense and other charges, net | (2,590) | (2,519) | (7,744) | (7,536) | ||||
Allowance for borrowed funds used during construction | 44 | 65 | 136 | 163 | ||||
Income before income taxes | 6,454 | 10,571 | 22,739 | 28,078 | ||||
Income taxes | 1,433 | 2,378 | 5,152 | 6,372 | ||||
Net income | 5,021 | 8,193 | 17,587 | 21,706 | ||||
Preferred stock dividends of subsidiaries | 133 | 133 | 400 | 400 | ||||
Net income attributable to Hawaiian Electric | 4,888 | 8,060 | 17,187 | 21,306 | ||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||||
Net income for common stock | 4,888 | 8,060 | 17,187 | 21,306 | ||||
Hawaiian Electric Consolidated | Reportable Legal Entities | Maui Electric | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 101,141 | 81,629 | 267,992 | 244,043 | ||||
Expenses | ||||||||
Fuel oil | 32,669 | 17,438 | 83,088 | 66,599 | ||||
Purchased power | 17,912 | 15,111 | 43,288 | 39,501 | ||||
Other operation and maintenance | 21,313 | 22,499 | 61,401 | 63,491 | ||||
Depreciation | 8,424 | 8,076 | 25,238 | 24,230 | ||||
Taxes, other than income taxes | 9,440 | 7,534 | 25,153 | 22,986 | ||||
Total expenses | 89,758 | 70,658 | 238,168 | 216,807 | ||||
Total operating income | 11,383 | 10,971 | 29,824 | 27,236 | ||||
Allowance for equity funds used during construction | 297 | 237 | 915 | 584 | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Retirement defined benefits credit (expense)—other than service costs | (30) | (35) | (96) | (93) | ||||
Interest expense and other charges, net | (2,616) | (2,457) | (7,799) | (7,226) | ||||
Allowance for borrowed funds used during construction | 107 | 77 | 329 | 191 | ||||
Income before income taxes | 9,141 | 8,793 | 23,173 | 20,692 | ||||
Income taxes | 1,906 | 1,846 | 4,792 | 4,220 | ||||
Net income | 7,235 | 6,947 | 18,381 | 16,472 | ||||
Preferred stock dividends of subsidiaries | 95 | 95 | 286 | 286 | ||||
Net income attributable to Hawaiian Electric | 7,140 | 6,852 | 18,095 | 16,186 | ||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||||
Net income for common stock | 7,140 | 6,852 | 18,095 | 16,186 | ||||
Hawaiian Electric Consolidated | Reportable Legal Entities | Other subsidiaries | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 0 | 0 | 0 | 0 | ||||
Expenses | ||||||||
Fuel oil | 0 | 0 | 0 | 0 | ||||
Purchased power | 0 | 0 | 0 | 0 | ||||
Other operation and maintenance | 0 | 0 | 0 | 0 | ||||
Depreciation | 0 | 0 | 0 | 0 | ||||
Taxes, other than income taxes | 0 | 0 | 0 | 0 | ||||
Total expenses | 0 | 0 | 0 | 0 | ||||
Total operating income | 0 | 0 | 0 | 0 | ||||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Retirement defined benefits credit (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 Consolidated | Consolidating adjustments | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | (1) | (110) | (21) | (465) | ||||
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 | |||||
Total operating income | (1) | (110) | (21) | (465) | ||||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 | ||||
Equity in earnings of subsidiaries | (12,028) | (14,912) | (35,282) | (37,492) | ||||
Retirement defined benefits credit (expense)—other than service costs | 0 | 0 | 0 | 0 | ||||
Interest expense and other charges, net | 1 | 110 | 21 | 465 | ||||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | 0 | ||||
Income before income taxes | (12,028) | (14,912) | (35,282) | (37,492) | ||||
Income taxes | 0 | 0 | 0 | |||||
Net income | (12,028) | (14,912) | (35,282) | (37,492) | ||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | |||||
Net income attributable to Hawaiian Electric | (12,028) | (14,912) | (35,282) | (37,492) | ||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||||
Net income for common stock | $ (12,028) | $ (14,912) | $ (35,282) | $ (37,492) |
Electric utility segment - Co_2
Electric utility segment - Condensed consolidating statement of comprehensive income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | $ 63,415 | $ 63,872 | $ 64,358 | $ 65,032 | $ 48,887 | $ 33,420 | $ 191,645 | $ 147,339 |
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 | 2,853 | 6,324 | 14,871 | 17,720 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (2,799) | (5,721) | (14,421) | (16,038) | ||||
Other comprehensive income (loss), net of taxes | (11,305) | 16,472 | (44,016) | 1,440 | (332) | 18,212 | (38,849) | 19,320 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 52,110 | 66,472 | 152,796 | 166,659 | ||||
Hawaiian Electric Consolidated | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | 50,342 | 41,901 | 43,358 | 60,065 | 42,329 | 23,905 | 135,601 | 126,299 |
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 | 2,905 | 5,769 | 14,596 | 16,137 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (2,799) | (5,721) | (14,421) | (16,038) | ||||
Other comprehensive income (loss), net of taxes | 106 | $ 35 | $ 34 | 48 | $ 25 | $ 26 | 175 | 99 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 50,448 | 60,113 | 135,776 | 126,398 | ||||
Hawaiian Electric Consolidated | Reportable Legal Entities | Hawaiian Electric Industries, Inc. | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | 50,342 | 60,065 | 135,601 | 126,299 | ||||
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 | 2,905 | 5,769 | 14,596 | 16,137 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (2,799) | (5,721) | (14,421) | (16,038) | ||||
Other comprehensive income (loss), net of taxes | 106 | 48 | 175 | 99 | ||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 50,448 | 60,113 | 135,776 | 126,398 | ||||
Hawaiian Electric Consolidated | Reportable Legal Entities | Hawaii Electric Light | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | 4,888 | 8,060 | 17,187 | 21,306 | ||||
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 | 393 | 885 | 2,062 | 2,384 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (391) | (887) | (2,059) | (2,382) | ||||
Other comprehensive income (loss), net of taxes | 2 | (2) | 3 | 2 | ||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 4,890 | 8,058 | 17,190 | 21,308 | ||||
Hawaiian Electric Consolidated | Reportable Legal Entities | Maui Electric | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | 7,140 | 6,852 | 18,095 | 16,186 | ||||
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 | 393 | 770 | 1,915 | 2,072 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (393) | (767) | (1,915) | (2,072) | ||||
Other comprehensive income (loss), net of taxes | 0 | 3 | 0 | 0 | ||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 7,140 | 6,855 | 18,095 | 16,186 | ||||
Hawaiian Electric Consolidated | Reportable Legal Entities | Other subsidiaries | ||||||||
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 Consolidated | Consolidating adjustments | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | (12,028) | (14,912) | (35,282) | (37,492) | ||||
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 | (786) | (1,655) | (3,977) | (4,456) | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 784 | 1,654 | 3,974 | 4,454 | ||||
Other comprehensive income (loss), net of taxes | (2) | (1) | (3) | (2) | ||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ (12,030) | $ (14,913) | $ (35,285) | $ (37,494) |
Electric utility segment - Co_3
Electric utility segment - Condensed consolidating balance sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Utility property, plant and equipment | ||||||||
Total property, plant and equipment, net | $ 5,335,130 | $ 5,265,735 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 227,923 | 341,421 | $ 193,126 | |||||
Restricted cash | 9,412 | 17,558 | 21,881 | |||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 141,816 | 153,069 | ||||||
Total assets | 15,760,163 | 15,004,007 | ||||||
Capitalization | ||||||||
Common stock equity | 2,383,543 | $ 2,367,329 | $ 2,321,293 | 2,337,502 | 2,323,231 | $ 2,291,398 | $ 2,276,505 | $ 2,280,260 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 | ||||||
Current liabilities | ||||||||
Interest and preferred dividends payable | 33,307 | 23,547 | ||||||
Deferred credits and other liabilities | ||||||||
Deferred income taxes | 378,139 | 395,089 | ||||||
Total liabilities and shareholders’ equity | 15,760,163 | 15,004,007 | ||||||
Hawaiian Electric Consolidated | ||||||||
Utility property, plant and equipment | ||||||||
Land | 51,610 | 51,611 | ||||||
Plant and equipment | 7,669,720 | 7,509,343 | ||||||
Less accumulated depreciation | (2,947,715) | (2,819,079) | ||||||
Construction in progress | 221,518 | 188,342 | ||||||
Utility property, plant and equipment, net | 4,995,133 | 4,930,217 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 6,950 | 6,953 | ||||||
Total property, plant and equipment, net | 5,002,083 | 4,937,170 | ||||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 36,467 | 47,360 | 29,800 | |||||
Restricted cash | 6,313 | 15,966 | 20,458 | |||||
Advances to affiliates | 0 | 0 | ||||||
Customer accounts receivable, net | 174,237 | 147,832 | ||||||
Accrued unbilled revenues, net | 129,079 | 101,036 | ||||||
Other accounts receivable, net | 6,116 | 7,673 | ||||||
Fuel oil stock, at average cost | 100,801 | 58,238 | ||||||
Materials and supplies, at average cost | 72,997 | 67,344 | ||||||
Prepayments and other | 53,961 | 44,083 | ||||||
Regulatory assets | 56,224 | 30,435 | ||||||
Total current assets | 636,195 | 519,967 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 119,624 | 127,654 | ||||||
Regulatory assets | 700,980 | 736,273 | ||||||
Other | 144,026 | 136,309 | ||||||
Total other long-term assets | 964,630 | 1,000,236 | ||||||
Total assets | 6,602,908 | 6,457,373 | ||||||
Capitalization | ||||||||
Common stock equity | 2,193,919 | $ 2,171,396 | $ 2,157,385 | 2,141,918 | 2,093,398 | $ 2,060,069 | $ 2,044,499 | 2,047,352 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 | ||||||
Long-term debt, net | 1,676,223 | 1,561,302 | ||||||
Total capitalization | 3,904,435 | 3,737,513 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 64,894 | 64,730 | ||||||
Short-term borrowings from non-affiliates | 0 | 49,979 | ||||||
Short-term borrowings from affiliate | 0 | 0 | ||||||
Accounts payable | 146,875 | 133,849 | ||||||
Interest and preferred dividends payable | 28,610 | 20,350 | ||||||
Taxes accrued, including revenue taxes | 196,368 | 192,524 | ||||||
Regulatory liabilities | 32,261 | 37,301 | ||||||
Other | 84,506 | 74,262 | ||||||
Total current liabilities | 553,514 | 572,995 | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 67,802 | 69,494 | ||||||
Deferred income taxes | 396,553 | 397,798 | ||||||
Regulatory liabilities | 943,251 | 922,485 | ||||||
Unamortized tax credits | 106,378 | 111,915 | ||||||
Defined benefit pension and other postretirement benefit plans liability | 509,972 | 530,532 | ||||||
Other | 121,003 | 114,641 | ||||||
Total deferred credits and other liabilities | 2,144,959 | 2,146,865 | ||||||
Total liabilities and shareholders’ equity | 6,602,908 | 6,457,373 | ||||||
Hawaiian Electric Consolidated | Reportable Legal Entities | Hawaiian Electric Industries, Inc. | ||||||||
Utility property, plant and equipment | ||||||||
Land | 42,410 | 42,411 | ||||||
Plant and equipment | 5,063,487 | 4,960,470 | ||||||
Less accumulated depreciation | (1,766,707) | (1,677,256) | ||||||
Construction in progress | 172,417 | 143,616 | ||||||
Utility property, plant and equipment, net | 3,511,607 | 3,469,241 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 5,303 | 5,306 | ||||||
Total property, plant and equipment, net | 3,516,910 | 3,474,547 | ||||||
Investment in wholly owned subsidiaries, at equity | 639,900 | 626,890 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 25,981 | 42,205 | 23,525 | |||||
Restricted cash | 6,313 | 15,966 | 20,458 | |||||
Advances to affiliates | 700 | 26,700 | ||||||
Customer accounts receivable, net | 118,776 | 102,736 | ||||||
Accrued unbilled revenues, net | 93,949 | 73,628 | ||||||
Other accounts receivable, net | 20,732 | 17,984 | ||||||
Fuel oil stock, at average cost | 71,072 | 38,777 | ||||||
Materials and supplies, at average cost | 43,094 | 38,786 | ||||||
Prepayments and other | 41,706 | 34,306 | ||||||
Regulatory assets | 47,004 | 22,095 | ||||||
Total current assets | 469,327 | 413,183 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 96,026 | 125,858 | ||||||
Regulatory assets | 489,746 | 513,192 | ||||||
Other | 112,298 | 98,307 | ||||||
Total other long-term assets | 698,070 | 737,357 | ||||||
Total assets | 5,324,207 | 5,251,977 | ||||||
Capitalization | ||||||||
Common stock equity | 2,193,919 | 2,141,918 | 2,093,398 | 2,047,352 | ||||
Preferred stock of subsidiaries - not subject to mandatory redemption | 22,293 | 22,293 | ||||||
Long-term debt, net | 1,176,477 | 1,116,426 | ||||||
Total capitalization | 3,392,689 | 3,280,637 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 61,505 | 64,599 | ||||||
Short-term borrowings from non-affiliates | 49,979 | |||||||
Short-term borrowings from affiliate | 0 | 0 | ||||||
Accounts payable | 101,685 | 97,102 | ||||||
Interest and preferred dividends payable | 20,390 | 14,480 | ||||||
Taxes accrued, including revenue taxes | 136,016 | 135,018 | ||||||
Regulatory liabilities | 21,257 | 20,224 | ||||||
Other | 71,738 | 57,926 | ||||||
Total current liabilities | 412,591 | 439,328 | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 47,585 | 67,824 | ||||||
Deferred income taxes | 284,245 | 282,685 | ||||||
Regulatory liabilities | 672,712 | 656,270 | ||||||
Unamortized tax credits | 78,215 | 82,563 | ||||||
Defined benefit pension and other postretirement benefit plans liability | 364,749 | 373,112 | ||||||
Other | 71,421 | 69,558 | ||||||
Total deferred credits and other liabilities | 1,518,927 | 1,532,012 | ||||||
Total liabilities and shareholders’ equity | 5,324,207 | 5,251,977 | ||||||
Hawaiian Electric Consolidated | Reportable Legal Entities | Hawaii Electric Light | ||||||||
Utility property, plant and equipment | ||||||||
Land | 5,606 | 5,606 | ||||||
Plant and equipment | 1,375,782 | 1,352,885 | ||||||
Less accumulated depreciation | (619,003) | (597,606) | ||||||
Construction in progress | 17,966 | 13,043 | ||||||
Utility property, plant and equipment, net | 780,351 | 773,928 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 115 | 115 | ||||||
Total property, plant and equipment, net | 780,466 | 774,043 | ||||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 3,788 | 3,046 | 4,363 | |||||
Restricted cash | 0 | 0 | 0 | |||||
Advances to affiliates | 0 | 0 | ||||||
Customer accounts receivable, net | 29,371 | 23,989 | ||||||
Accrued unbilled revenues, net | 17,660 | 13,631 | ||||||
Other accounts receivable, net | 3,843 | 3,028 | ||||||
Fuel oil stock, at average cost | 13,079 | 8,471 | ||||||
Materials and supplies, at average cost | 10,107 | 9,896 | ||||||
Prepayments and other | 5,232 | 5,197 | ||||||
Regulatory assets | 2,966 | 1,954 | ||||||
Total current assets | 86,046 | 69,212 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 23,271 | 1,443 | ||||||
Regulatory assets | 108,093 | 114,461 | ||||||
Other | 19,008 | 17,992 | ||||||
Total other long-term assets | 150,372 | 133,896 | ||||||
Total assets | 1,016,884 | 977,151 | ||||||
Capitalization | ||||||||
Common stock equity | 323,691 | 317,451 | 308,066 | 298,998 | ||||
Preferred stock of subsidiaries - not subject to mandatory redemption | 7,000 | 7,000 | ||||||
Long-term debt, net | 246,360 | 216,447 | ||||||
Total capitalization | 577,051 | 540,898 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 3,354 | 98 | ||||||
Short-term borrowings from non-affiliates | 0 | |||||||
Short-term borrowings from affiliate | 700 | 18,800 | ||||||
Accounts payable | 24,640 | 19,570 | ||||||
Interest and preferred dividends payable | 3,750 | 3,138 | ||||||
Taxes accrued, including revenue taxes | 31,338 | 29,869 | ||||||
Regulatory liabilities | 4,164 | 8,785 | ||||||
Other | 14,488 | 13,851 | ||||||
Total current liabilities | 82,434 | 94,111 | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 19,917 | 1,344 | ||||||
Deferred income taxes | 51,822 | 54,108 | ||||||
Regulatory liabilities | 177,877 | 173,938 | ||||||
Unamortized tax credits | 14,577 | 15,363 | ||||||
Defined benefit pension and other postretirement benefit plans liability | 74,183 | 77,679 | ||||||
Other | 19,023 | 19,710 | ||||||
Total deferred credits and other liabilities | 357,399 | 342,142 | ||||||
Total liabilities and shareholders’ equity | 1,016,884 | 977,151 | ||||||
Hawaiian Electric Consolidated | Reportable Legal Entities | Maui Electric | ||||||||
Utility property, plant and equipment | ||||||||
Land | 3,594 | 3,594 | ||||||
Plant and equipment | 1,230,451 | 1,195,988 | ||||||
Less accumulated depreciation | (562,005) | (544,217) | ||||||
Construction in progress | 31,135 | 31,683 | ||||||
Utility property, plant and equipment, net | 703,175 | 687,048 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 1,532 | 1,532 | ||||||
Total property, plant and equipment, net | 704,707 | 688,580 | ||||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 6,621 | 2,032 | 1,835 | |||||
Restricted cash | 0 | 0 | 0 | |||||
Advances to affiliates | 0 | 0 | ||||||
Customer accounts receivable, net | 26,090 | 21,107 | ||||||
Accrued unbilled revenues, net | 17,470 | 13,777 | ||||||
Other accounts receivable, net | 3,616 | 2,856 | ||||||
Fuel oil stock, at average cost | 16,650 | 10,990 | ||||||
Materials and supplies, at average cost | 19,796 | 18,662 | ||||||
Prepayments and other | 7,023 | 4,580 | ||||||
Regulatory assets | 6,254 | 6,386 | ||||||
Total current assets | 103,520 | 80,390 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 327 | 353 | ||||||
Regulatory assets | 103,141 | 108,620 | ||||||
Other | 18,448 | 20,010 | ||||||
Total other long-term assets | 121,916 | 128,983 | ||||||
Total assets | 930,143 | 897,953 | ||||||
Capitalization | ||||||||
Common stock equity | 316,132 | 309,363 | 298,268 | 292,870 | ||||
Preferred stock of subsidiaries - not subject to mandatory redemption | 5,000 | 5,000 | ||||||
Long-term debt, net | 253,386 | 228,429 | ||||||
Total capitalization | 574,518 | 542,792 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 35 | 33 | ||||||
Short-term borrowings from non-affiliates | 0 | |||||||
Short-term borrowings from affiliate | 0 | 7,900 | ||||||
Accounts payable | 20,550 | 17,177 | ||||||
Interest and preferred dividends payable | 4,471 | 2,790 | ||||||
Taxes accrued, including revenue taxes | 29,014 | 27,637 | ||||||
Regulatory liabilities | 6,840 | 8,292 | ||||||
Other | 20,503 | 18,621 | ||||||
Total current liabilities | 81,413 | 82,450 | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 300 | 326 | ||||||
Deferred income taxes | 60,486 | 61,005 | ||||||
Regulatory liabilities | 92,662 | 92,277 | ||||||
Unamortized tax credits | 13,586 | 13,989 | ||||||
Defined benefit pension and other postretirement benefit plans liability | 76,619 | 79,741 | ||||||
Other | 30,559 | 25,373 | ||||||
Total deferred credits and other liabilities | 274,212 | 272,711 | ||||||
Total liabilities and shareholders’ equity | 930,143 | 897,953 | ||||||
Hawaiian Electric Consolidated | Reportable Legal Entities | Other subsidiaries | ||||||||
Utility property, plant and equipment | ||||||||
Land | 0 | 0 | ||||||
Plant and equipment | 0 | 0 | ||||||
Less accumulated depreciation | 0 | 0 | ||||||
Construction in progress | 0 | 0 | ||||||
Utility property, plant and equipment, net | 0 | 0 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 0 | 0 | ||||||
Total property, plant and equipment, net | 0 | 0 | ||||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 77 | 77 | 77 | |||||
Restricted cash | 0 | 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 | 77 | 77 | ||||||
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 | 77 | 77 | ||||||
Capitalization | ||||||||
Common stock equity | 77 | 77 | 77 | 101 | ||||
Preferred stock of subsidiaries - not subject to mandatory redemption | 0 | 0 | ||||||
Long-term debt, net | 0 | 0 | ||||||
Total capitalization | 77 | 77 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 0 | 0 | ||||||
Short-term borrowings from non-affiliates | 0 | |||||||
Short-term borrowings from affiliate | 0 | 0 | ||||||
Accounts payable | 0 | 0 | ||||||
Interest and preferred dividends payable | 0 | 0 | ||||||
Taxes accrued, including revenue taxes | 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 | 77 | 77 | ||||||
Hawaiian Electric Consolidated | 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 | (639,900) | (626,890) | ||||||
Current assets | ||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||
Restricted cash | 0 | 0 | 0 | |||||
Advances to affiliates | (700) | (26,700) | ||||||
Customer accounts receivable, net | 0 | 0 | ||||||
Accrued unbilled revenues, net | 0 | 0 | ||||||
Other accounts receivable, net | (22,075) | (16,195) | ||||||
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 | (22,775) | (42,895) | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 0 | 0 | ||||||
Regulatory assets | 0 | 0 | ||||||
Other | (5,728) | 0 | ||||||
Total other long-term assets | (5,728) | 0 | ||||||
Total assets | (668,403) | (669,785) | ||||||
Capitalization | ||||||||
Common stock equity | (639,900) | (626,891) | $ (606,411) | $ (591,969) | ||||
Preferred stock of subsidiaries - not subject to mandatory redemption | 0 | 0 | ||||||
Long-term debt, net | 0 | 0 | ||||||
Total capitalization | (639,900) | (626,891) | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 0 | 0 | ||||||
Short-term borrowings from non-affiliates | 0 | |||||||
Short-term borrowings from affiliate | (700) | (26,700) | ||||||
Accounts payable | 0 | 0 | ||||||
Interest and preferred dividends payable | (1) | (58) | ||||||
Taxes accrued, including revenue taxes | 0 | 0 | ||||||
Regulatory liabilities | 0 | 0 | ||||||
Other | (22,223) | (16,136) | ||||||
Total current liabilities | (22,924) | (42,894) | ||||||
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 | (5,579) | 0 | ||||||
Other | 0 | 0 | ||||||
Total deferred credits and other liabilities | (5,579) | 0 | ||||||
Total liabilities and shareholders’ equity | $ (668,403) | $ (669,785) |
Electric utility segment - Co_4
Electric utility segment - Condensed consolidating statement of changes in common stock equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (decrease) in stockholders' equity | ||||||||
Beginning balance | $ 2,367,329 | $ 2,321,293 | $ 2,337,502 | $ 2,291,398 | $ 2,276,505 | $ 2,280,260 | $ 2,337,502 | $ 2,280,260 |
Net income for common stock | 63,415 | 63,872 | 64,358 | 65,032 | 48,887 | 33,420 | 191,645 | 147,339 |
Other comprehensive income, net of taxes | (11,305) | 16,472 | (44,016) | 1,440 | (332) | 18,212 | (38,849) | 19,320 |
Common stock dividends | (37,166) | (37,155) | (37,156) | (36,030) | (36,017) | (36,019) | ||
Ending balance | 2,383,543 | 2,367,329 | 2,321,293 | 2,323,231 | 2,291,398 | 2,276,505 | 2,383,543 | 2,323,231 |
Hawaiian Electric Consolidated | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning balance | 2,171,396 | 2,157,385 | 2,141,918 | 2,060,069 | 2,044,499 | 2,047,352 | 2,141,918 | 2,047,352 |
Net income for common stock | 50,342 | 41,901 | 43,358 | 60,065 | 42,329 | 23,905 | 135,601 | 126,299 |
Other comprehensive income, net of taxes | 106 | 35 | 34 | 48 | 25 | 26 | 175 | 99 |
Common stock dividends | (27,925) | (27,925) | (27,925) | (26,784) | (26,784) | (26,784) | (83,775) | (80,352) |
Ending balance | 2,193,919 | $ 2,171,396 | 2,157,385 | 2,093,398 | $ 2,060,069 | 2,044,499 | 2,193,919 | 2,093,398 |
Hawaiian Electric Consolidated | Reportable Legal Entities | Hawaiian Electric Industries, Inc. | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning balance | 2,141,918 | 2,047,352 | 2,141,918 | 2,047,352 | ||||
Net income for common stock | 50,342 | 60,065 | 135,601 | 126,299 | ||||
Other comprehensive income, net of taxes | 106 | 48 | 175 | 99 | ||||
Common stock dividends | (83,775) | (80,352) | ||||||
Ending balance | 2,193,919 | 2,093,398 | 2,193,919 | 2,093,398 | ||||
Hawaiian Electric Consolidated | Reportable Legal Entities | Hawaii Electric Light | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning balance | 317,451 | 298,998 | 317,451 | 298,998 | ||||
Net income for common stock | 4,888 | 8,060 | 17,187 | 21,306 | ||||
Other comprehensive income, net of taxes | 2 | (2) | 3 | 2 | ||||
Common stock dividends | (10,950) | (12,240) | ||||||
Ending balance | 323,691 | 308,066 | 323,691 | 308,066 | ||||
Hawaiian Electric Consolidated | Reportable Legal Entities | Maui Electric | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning balance | 309,363 | 292,870 | 309,363 | 292,870 | ||||
Net income for common stock | 7,140 | 6,852 | 18,095 | 16,186 | ||||
Other comprehensive income, net of taxes | 0 | 3 | 0 | 0 | ||||
Common stock dividends | (11,326) | (10,788) | ||||||
Ending balance | 316,132 | 298,268 | 316,132 | 298,268 | ||||
Hawaiian Electric Consolidated | Reportable Legal Entities | Other subsidiaries | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning balance | 77 | 101 | 77 | 101 | ||||
Net income for common stock | 0 | 0 | 0 | 0 | ||||
Other comprehensive income, net of taxes | 0 | 0 | 0 | 0 | ||||
Dissolution of subsidiary | (24) | |||||||
Ending balance | 77 | 77 | 77 | 77 | ||||
Hawaiian Electric Consolidated | Consolidating adjustments | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning balance | $ (626,891) | $ (591,969) | (626,891) | (591,969) | ||||
Net income for common stock | (12,028) | (14,912) | (35,282) | (37,492) | ||||
Other comprehensive income, net of taxes | (2) | (1) | (3) | (2) | ||||
Common stock dividends | 22,276 | 23,028 | ||||||
Dissolution of subsidiary | 24 | |||||||
Ending balance | $ (639,900) | $ (606,411) | $ (639,900) | $ (606,411) |
Electric utility segment - Co_5
Electric utility segment - Condensed consolidating statement of cash flows (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net cash provided by operating activities | $ 267,205 | $ 312,268 | |
Cash flows from investing activities | |||
Capital expenditures | (219,252) | (296,172) | |
Other | 10,078 | 4,899 | |
Net cash used in investing activities | (984,839) | (1,144,633) | |
Cash flows from financing activities | |||
Common stock dividends | (111,477) | (108,066) | |
Proceeds from issuance of short-term debt | 0 | 165,000 | |
Repayment of short-term debt | (65,000) | (100,000) | |
Proceeds from issuance of long-term debt | 206,988 | 365,146 | |
Repayment of long-term debt | (80,607) | (178,291) | |
Net increase in other bank borrowings with original maturities of three months or less | 39,635 | 6,765 | |
Other | (7,462) | (7,275) | |
Net cash provided by financing activities | 595,990 | 819,687 | |
Net decrease in cash, cash equivalents and restricted cash | (121,644) | (12,678) | |
Cash, cash equivalents and restricted cash, beginning of period | 358,979 | 227,685 | |
Cash, cash equivalents and restricted cash, end of period | 237,335 | 215,007 | |
Less: Restricted cash | (9,412) | (21,881) | $ (17,558) |
Cash and cash equivalents, end of period | 227,923 | 193,126 | 341,421 |
Hawaiian Electric Consolidated | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 198,256 | 244,955 | |
Cash flows from investing activities | |||
Capital expenditures | (203,746) | (267,482) | |
Advances from affiliates | 0 | 0 | |
Other | 6,157 | 7,295 | |
Net cash used in investing activities | (197,589) | (260,187) | |
Cash flows from financing activities | |||
Common stock dividends | (83,775) | (80,352) | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,496) | (1,496) | |
Proceeds from issuance of short-term debt | 0 | 100,000 | |
Repayment of short-term debt | (50,000) | (100,000) | |
Proceeds from issuance of long-term debt | 115,000 | 255,000 | |
Repayment of long-term debt | 0 | (109,000) | |
Net increase in other bank borrowings with original maturities of three months or less | 0 | (38,987) | |
Other | (942) | (1,569) | |
Net cash provided by financing activities | (21,213) | 23,596 | |
Net decrease in cash, cash equivalents and restricted cash | (20,546) | 8,364 | |
Cash, cash equivalents and restricted cash, beginning of period | 63,326 | 41,894 | |
Cash, cash equivalents and restricted cash, end of period | 42,780 | 50,258 | |
Less: Restricted cash | (6,313) | (20,458) | (15,966) |
Cash and cash equivalents, end of period | 36,467 | 29,800 | 47,360 |
Hawaiian Electric Consolidated | Reportable Legal Entities | Hawaiian Electric Industries, Inc. | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 157,191 | 205,645 | |
Cash flows from investing activities | |||
Capital expenditures | (137,916) | (180,088) | |
Advances from affiliates | 26,000 | (800) | |
Other | 4,136 | 5,636 | |
Net cash used in investing activities | (107,780) | (175,252) | |
Cash flows from financing activities | |||
Common stock dividends | (83,775) | (80,352) | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (810) | (810) | |
Proceeds from issuance of short-term debt | 100,000 | ||
Repayment of short-term debt | (50,000) | (100,000) | |
Proceeds from issuance of long-term debt | 60,000 | 205,000 | |
Repayment of long-term debt | (95,000) | ||
Net increase in other bank borrowings with original maturities of three months or less | 0 | (46,987) | |
Other | (703) | (1,249) | |
Net cash provided by financing activities | (75,288) | (19,398) | |
Net decrease in cash, cash equivalents and restricted cash | (25,877) | 10,995 | |
Cash, cash equivalents and restricted cash, beginning of period | 58,171 | 32,988 | |
Cash, cash equivalents and restricted cash, end of period | 32,294 | 43,983 | |
Less: Restricted cash | (6,313) | (20,458) | (15,966) |
Cash and cash equivalents, end of period | 25,981 | 23,525 | 42,205 |
Hawaiian Electric Consolidated | Reportable Legal Entities | Hawaii Electric Light | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 32,698 | 27,256 | |
Cash flows from investing activities | |||
Capital expenditures | (33,511) | (48,750) | |
Advances from affiliates | 0 | 8,000 | |
Other | 1,121 | 1,056 | |
Net cash used in investing activities | (32,390) | (39,694) | |
Cash flows from financing activities | |||
Common stock dividends | (10,950) | (12,240) | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (400) | (400) | |
Proceeds from issuance of short-term debt | 0 | ||
Repayment of short-term debt | 0 | 0 | |
Proceeds from issuance of long-term debt | 30,000 | 10,000 | |
Repayment of long-term debt | (14,000) | ||
Net increase in other bank borrowings with original maturities of three months or less | (18,100) | 26,500 | |
Other | (116) | (67) | |
Net cash provided by financing activities | 434 | 9,793 | |
Net decrease in cash, cash equivalents and restricted cash | 742 | (2,645) | |
Cash, cash equivalents and restricted cash, beginning of period | 3,046 | 7,008 | |
Cash, cash equivalents and restricted cash, end of period | 3,788 | 4,363 | |
Less: Restricted cash | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 3,788 | 4,363 | 3,046 |
Hawaiian Electric Consolidated | Reportable Legal Entities | Maui Electric | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 30,643 | 34,678 | |
Cash flows from investing activities | |||
Capital expenditures | (32,319) | (38,644) | |
Advances from affiliates | 0 | 0 | |
Other | 900 | 1,031 | |
Net cash used in investing activities | (31,419) | (37,613) | |
Cash flows from financing activities | |||
Common stock dividends | (11,326) | (10,788) | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (286) | (286) | |
Proceeds from issuance of short-term debt | 0 | ||
Repayment of short-term debt | 0 | 0 | |
Proceeds from issuance of long-term debt | 25,000 | 40,000 | |
Repayment of long-term debt | 0 | ||
Net increase in other bank borrowings with original maturities of three months or less | (7,900) | (25,700) | |
Other | (123) | (253) | |
Net cash provided by financing activities | 5,365 | 2,973 | |
Net decrease in cash, cash equivalents and restricted cash | 4,589 | 38 | |
Cash, cash equivalents and restricted cash, beginning of period | 2,032 | 1,797 | |
Cash, cash equivalents and restricted cash, end of period | 6,621 | 1,835 | |
Less: Restricted cash | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 6,621 | 1,835 | 2,032 |
Hawaiian Electric Consolidated | Reportable Legal Entities | Other subsidiaries | |||
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 | (24) | |
Net cash used in investing activities | 0 | (24) | |
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 | ||
Repayment of short-term debt | 0 | 0 | |
Proceeds from issuance of long-term debt | 0 | 0 | |
Repayment of long-term debt | 0 | ||
Net increase 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 decrease in cash, cash equivalents and restricted cash | 0 | (24) | |
Cash, cash equivalents and restricted cash, beginning of period | 77 | 101 | |
Cash, cash equivalents and restricted cash, end of period | 77 | 77 | |
Less: Restricted cash | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 77 | 77 | 77 |
Hawaiian Electric Consolidated | Consolidating adjustments | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | (22,276) | (22,624) | |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | |
Advances from affiliates | (26,000) | (7,200) | |
Other | 0 | (404) | |
Net cash used in investing activities | (26,000) | (7,604) | |
Cash flows from financing activities | |||
Common stock dividends | 22,276 | 23,028 | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | |
Proceeds from issuance of short-term debt | 0 | ||
Repayment of short-term debt | 0 | 0 | |
Proceeds from issuance of long-term debt | 0 | 0 | |
Repayment of long-term debt | 0 | ||
Net increase in other bank borrowings with original maturities of three months or less | 26,000 | 7,200 | |
Other | 0 | 0 | |
Net cash provided by financing activities | 48,276 | 30,228 | |
Net decrease 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 | 0 |
Cash and cash equivalents, end of period | $ 0 | $ 0 | $ 0 |
Bank segment - Income statement
Bank segment - Income statement data (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest expense | ||||||||
Provision for credit losses | $ (1,975) | $ 14,470 | $ (21,967) | $ 35,204 | ||||
Noninterest income | ||||||||
Noninterest income | 690,618 | 550,412 | 1,836,745 | 1,701,967 | ||||
Noninterest expense | ||||||||
Income before income taxes | 78,151 | 79,521 | 241,291 | 179,447 | ||||
Income taxes | 14,265 | 14,018 | 48,229 | 30,691 | ||||
Other comprehensive income (loss), net of tax (benefits) | (11,305) | $ 16,472 | $ (44,016) | 1,440 | $ (332) | $ 18,212 | (38,849) | 19,320 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 52,110 | 66,472 | 152,796 | 166,659 | ||||
COVID-19 related costs | 100 | 700 | 500 | 4,500 | ||||
Incremental compensation expense | 2,400 | |||||||
Enhanced cleaning and sanitation costs | 1,700 | |||||||
American Savings Bank (ASB) | ||||||||
Interest and dividend income | ||||||||
Interest and fees on loans | 49,445 | 52,419 | 150,418 | 161,505 | ||||
Interest and dividends on investment securities | 11,996 | 7,221 | 31,709 | 22,939 | ||||
Total interest and dividend income | 61,441 | 59,640 | 182,127 | 184,444 | ||||
Interest expense | ||||||||
Interest on deposit liabilities | 1,176 | 2,287 | 3,919 | 8,945 | ||||
Interest on other borrowings | 5 | 61 | 55 | 449 | ||||
Total interest expense | 1,181 | 2,348 | 3,974 | 9,394 | ||||
Net interest income | 60,260 | 57,292 | 178,153 | 175,050 | ||||
Provision for credit losses | (1,725) | 13,970 | (22,367) | 39,504 | ||||
Net interest income after provision for credit losses | 61,985 | 43,322 | 200,520 | 135,546 | ||||
Noninterest income | ||||||||
Total noninterest income | 14,767 | 19,004 | 49,000 | 57,927 | ||||
Noninterest expense | ||||||||
Compensation and employee benefits | 30,888 | 26,431 | 86,595 | 77,287 | ||||
Occupancy | 5,157 | 5,693 | 15,226 | 16,402 | ||||
Data processing | 4,278 | 3,366 | 13,162 | 11,052 | ||||
Services | 2,272 | 2,624 | 7,609 | 7,907 | ||||
Equipment | 2,373 | 2,001 | 6,989 | 6,630 | ||||
Office supplies, printing and postage | 1,072 | 1,187 | 3,094 | 3,577 | ||||
Marketing | 995 | 727 | 2,308 | 1,908 | ||||
FDIC insurance | 808 | 714 | 2,412 | 1,567 | ||||
Other expense | 3,668 | 4,556 | 9,790 | 15,813 | ||||
Total noninterest expense | 51,511 | 47,299 | 147,185 | 142,143 | ||||
Income before income taxes | 25,241 | 15,027 | 102,335 | 51,330 | ||||
Income taxes | 5,976 | 2,877 | 23,230 | 9,405 | ||||
Net income attributable to Hawaiian Electric | 19,265 | 12,150 | 79,105 | 41,925 | ||||
Other comprehensive income (loss), net of tax (benefits) | (11,684) | 1,393 | (40,439) | 20,960 | ||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 7,581 | 13,543 | 38,666 | 62,885 | ||||
American Savings Bank (ASB) | Fees from other financial services | ||||||||
Noninterest income | ||||||||
Noninterest income | 4,800 | 4,233 | 15,337 | 11,906 | ||||
American Savings Bank (ASB) | Fee income on deposit liabilities | ||||||||
Noninterest income | ||||||||
Noninterest income | 4,262 | 3,832 | 12,029 | 11,842 | ||||
American Savings Bank (ASB) | Fee income on other financial products | ||||||||
Noninterest income | ||||||||
Noninterest income | 2,124 | 1,524 | 6,767 | 4,608 | ||||
American Savings Bank (ASB) | Bank-owned life insurance | ||||||||
Noninterest income | ||||||||
Noninterest income | 2,026 | 1,965 | 6,211 | 4,432 | ||||
American Savings Bank (ASB) | Mortgage banking income | ||||||||
Noninterest income | ||||||||
Noninterest income | 1,272 | 7,681 | 7,497 | 15,933 | ||||
American Savings Bank (ASB) | Gain on sale of investment securities, net | ||||||||
Noninterest income | ||||||||
Noninterest income | 0 | 0 | 528 | 9,275 | ||||
American Savings Bank (ASB) | Other income, net | ||||||||
Noninterest income | ||||||||
Noninterest income | $ 283 | $ (231) | $ 631 | $ (69) |
Bank segment - Reconciliation o
Bank segment - Reconciliation of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Condensed Income Statements, Captions [Line Items] | ||||
Less: Gain on sale of investment securities, net | $ 0 | $ 0 | $ 528 | $ 9,275 |
Revenues | 756,904 | 641,427 | 2,080,107 | 1,927,558 |
Provision for credit losses | (1,975) | 14,470 | (21,967) | 35,204 |
Less: Retirement defined benefits expense (credit)—other than service costs | (1,058) | 1,102 | (4,709) | 2,970 |
Total expenses | 659,588 | 541,866 | 1,782,904 | 1,696,739 |
Operating income - Bank | 97,316 | 99,561 | 297,203 | 230,819 |
Income before income taxes | 78,151 | 79,521 | 241,291 | 179,447 |
American Savings Bank (ASB) | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Interest and dividend income | 61,441 | 59,640 | 182,127 | 184,444 |
Noninterest income | 14,767 | 19,004 | 49,000 | 57,927 |
Less: Gain on sale of investment securities, net | 0 | 0 | 528 | 9,275 |
Revenues | 76,208 | 78,644 | 230,599 | 233,096 |
Total interest expense | 1,181 | 2,348 | 3,974 | 9,394 |
Provision for credit losses | (1,725) | 13,970 | (22,367) | 39,504 |
Noninterest expense | 51,511 | 47,299 | 147,185 | 142,143 |
Less: Retirement defined benefits expense (credit)—other than service costs | (184) | 473 | (1,648) | 1,341 |
Total expenses | 51,151 | 63,144 | 130,440 | 189,700 |
Operating income - Bank | 25,057 | 15,500 | 100,159 | 43,396 |
Income before income taxes | $ 25,241 | $ 15,027 | $ 102,335 | $ 51,330 |
Bank segment - Balance sheet da
Bank segment - Balance sheet data (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||||||||
Cash and cash equivalents | $ 227,923 | $ 341,421 | $ 193,126 | |||||
Investment securities | ||||||||
Available-for-sale investment securities, at fair value | 2,580,830 | 1,970,417 | ||||||
Held-to-maturity investment securities, at amortized cost | 491,871 | 226,947 | ||||||
Held-to-maturity investment securities | 484,654 | |||||||
Stock in Federal Home Loan Bank, at cost | 10,000 | 8,680 | ||||||
Allowance for credit losses | (75,944) | $ (78,252) | (101,201) | (91,459) | $ (81,307) | $ (53,355) | ||
Total loans, net | 5,046,180 | 5,232,642 | ||||||
Loans held for sale, at lower of cost or fair value | 53,998 | 28,275 | ||||||
Other assets | 691,857 | 629,149 | ||||||
Goodwill | 82,190 | 82,190 | ||||||
Total assets | 15,760,163 | 15,004,007 | ||||||
Liabilities and shareholder’s equity | ||||||||
Other | 618,369 | 618,438 | ||||||
Total liabilities | 13,342,327 | 12,632,212 | ||||||
Retained earnings | 740,566 | 660,398 | ||||||
Accumulated other comprehensive income (loss), net of taxes | ||||||||
Accumulated other comprehensive loss, net of tax benefits | (40,113) | (1,264) | ||||||
Total shareholders’ equity | 2,383,543 | $ 2,367,329 | $ 2,321,293 | 2,337,502 | $ 2,323,231 | $ 2,291,398 | $ 2,276,505 | $ 2,280,260 |
Total liabilities and shareholders’ equity | 15,760,163 | 15,004,007 | ||||||
Other assets | ||||||||
Premises and equipment, net | 5,335,130 | 5,265,735 | ||||||
Other assets | 691,857 | 629,149 | ||||||
Other liabilities | ||||||||
Other liabilities | 618,369 | 618,438 | ||||||
American Savings Bank (ASB) | ||||||||
Assets | ||||||||
Cash and due from banks | 109,942 | 178,422 | ||||||
Interest-bearing deposits | 80,007 | 114,304 | ||||||
Cash and cash equivalents | 189,949 | 292,726 | ||||||
Investment securities | ||||||||
Available-for-sale investment securities, at fair value | 2,580,830 | 1,970,417 | ||||||
Held-to-maturity investment securities, at amortized cost | 491,871 | 226,947 | ||||||
Held-to-maturity investment securities | 484,654 | 229,963 | ||||||
Stock in Federal Home Loan Bank, at cost | 10,000 | 8,680 | ||||||
Collateral-dependent loans, amortized cost | 5,122,124 | 5,333,843 | ||||||
Allowance for credit losses | (75,944) | (101,201) | ||||||
Total loans, net | 5,046,180 | 5,232,642 | ||||||
Loans held for sale, at lower of cost or fair value | 53,998 | 28,275 | ||||||
Other assets | 555,401 | 554,656 | ||||||
Goodwill | 82,190 | 82,190 | ||||||
Total assets | 9,010,419 | 8,396,533 | ||||||
Liabilities and shareholder’s equity | ||||||||
Deposit liabilities—noninterest-bearing | 2,931,394 | 2,598,500 | ||||||
Deposit liabilities—interest-bearing | 5,045,144 | 4,788,457 | ||||||
Other borrowings | 129,305 | 89,670 | ||||||
Other | 168,064 | 183,731 | ||||||
Total liabilities | 8,273,907 | 7,660,358 | ||||||
Common stock | 1 | 1 | ||||||
Additional paid-in capital | 353,429 | 351,758 | ||||||
Retained earnings | 408,575 | 369,470 | ||||||
Accumulated other comprehensive income (loss), net of taxes | ||||||||
Net unrealized gains (losses) on securities | (20,322) | 19,986 | ||||||
Retirement benefit plans | (5,171) | (5,040) | ||||||
Accumulated other comprehensive loss, net of tax benefits | (25,493) | 14,946 | ||||||
Total shareholders’ equity | 736,512 | 736,175 | ||||||
Total liabilities and shareholders’ equity | 9,010,419 | 8,396,533 | ||||||
Other assets | ||||||||
Bank-owned life insurance | 166,486 | 163,265 | ||||||
Premises and equipment, net | 205,624 | 206,134 | ||||||
Accrued interest receivable | 22,036 | 24,616 | ||||||
Mortgage-servicing rights | 10,272 | 10,020 | ||||||
Low-income housing investments | 84,728 | 83,435 | ||||||
Other | 66,255 | 67,186 | ||||||
Other assets | 555,401 | 554,656 | ||||||
Other liabilities | ||||||||
Accrued expenses | 59,270 | 62,694 | ||||||
Federal and state income taxes payable | 0 | 6,582 | ||||||
Cashier’s checks | 37,451 | 38,011 | ||||||
Advance payments by borrowers | 5,129 | 10,207 | ||||||
Other | 66,214 | 66,237 | ||||||
Other liabilities | $ 168,064 | $ 183,731 |
Bank segment - Narrative (Detai
Bank segment - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Allowance for credit losses | |||
Securities sold under agreements to repurchase | $ 129 | $ 90 | |
American Savings Bank (ASB) | |||
Allowance for credit losses | |||
Securities sold under agreements to repurchase | $ 129.3 | $ 89.7 | |
Minimum benchmark percentage of loan to appraisal ratio which mortgage insurance is required | 80.00% | ||
Minimum benchmark percentage of loan to appraisal ratio on non-owner occupied residential property | 75.00% | ||
Home equity line of credit | |||
Allowance for credit losses | |||
Conversion of debt | $ 13.6 | $ 10 | |
Commercial | |||
Allowance for credit losses | |||
Conversion of debt | 1.6 | 13.8 | |
Consumer | |||
Allowance for credit losses | |||
Conversion of debt | $ 1.9 | $ 2 |
Bank segment - Components of in
Bank segment - Components of investment securities (Details) $ in Thousands | Sep. 30, 2021USD ($)issue | Dec. 31, 2020USD ($)issue |
Available-for-sale | ||
Available-for-sale investment securities, at fair value | $ 2,580,830 | $ 1,970,417 |
Held-to-maturity | ||
Amortized cost | 491,871 | 226,947 |
Held-to-maturity investment securities | 484,654 | |
American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 2,608,592 | 1,943,114 |
Gross unrealized gains | 13,488 | 30,454 |
Gross unrealized losses | (41,250) | (3,151) |
Available-for-sale investment securities, at fair value | $ 2,580,830 | $ 1,970,417 |
Gross unrealized losses, Less than 12 months, Number of issues | issue | 106 | 22 |
Gross unrealized losses, Less than 12 months, Fair value | $ 1,792,604 | $ 373,924 |
Gross unrealized losses, Less than 12 months, Amount | $ (36,651) | $ (3,151) |
Gross unrealized losses, 12 months or longer, Number of issues | issue | 9 | 0 |
Gross unrealized losses, 12 months or longer, Fair value | $ 123,882 | $ 0 |
Gross unrealized losses, 12 months or more, amount | (4,599) | 0 |
Held-to-maturity | ||
Amortized cost | 491,871 | 226,947 |
Gross unrealized gains | 2,487 | 3,846 |
Gross unrealized losses | (9,704) | (830) |
Held-to-maturity investment securities | $ 484,654 | $ 229,963 |
Less than 12 months: Number of issues | issue | 24 | 7 |
Less than 12 Months: Fair value | $ 345,848 | $ 114,152 |
Less than 12 Months: Amount | $ (8,291) | $ (830) |
12 months or longer: Number of issues | issue | 2 | 0 |
12 months or longer: Fair value | $ 23,860 | $ 0 |
12 months or longer: Amount | (1,413) | 0 |
U.S. Treasury and federal agency obligations | American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 90,831 | 60,260 |
Gross unrealized gains | 1,334 | 2,062 |
Gross unrealized losses | (90) | 0 |
Available-for-sale investment securities, at fair value | $ 92,075 | $ 62,322 |
Gross unrealized losses, Less than 12 months, Number of issues | issue | 1 | 0 |
Gross unrealized losses, Less than 12 months, Fair value | $ 19,851 | $ 0 |
Gross unrealized losses, Less than 12 months, Amount | $ (90) | $ 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 more, amount | 0 | 0 |
Held-to-maturity | ||
Amortized cost | 40,064 | |
Gross unrealized gains | 100 | |
Gross unrealized losses | (13) | |
Held-to-maturity investment securities | $ 40,151 | |
Less than 12 months: Number of issues | issue | 1 | |
Less than 12 Months: Fair value | $ 19,941 | |
Less than 12 Months: Amount | $ (13) | |
12 months or longer: Number of issues | issue | 0 | |
12 months or longer: Fair value | $ 0 | |
12 months or longer: Amount | 0 | |
Mortgage-backed securities | American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 2,471,650 | 1,825,893 |
Gross unrealized gains | 11,193 | 26,817 |
Gross unrealized losses | (41,160) | (3,151) |
Available-for-sale investment securities, at fair value | $ 2,441,683 | $ 1,849,559 |
Gross unrealized losses, Less than 12 months, Number of issues | issue | 105 | 22 |
Gross unrealized losses, Less than 12 months, Fair value | $ 1,772,753 | $ 373,924 |
Gross unrealized losses, Less than 12 months, Amount | $ (36,561) | $ (3,151) |
Gross unrealized losses, 12 months or longer, Number of issues | issue | 9 | 0 |
Gross unrealized losses, 12 months or longer, Fair value | $ 123,882 | $ 0 |
Gross unrealized losses, 12 months or more, amount | (4,599) | 0 |
Held-to-maturity | ||
Amortized cost | 451,807 | 226,947 |
Gross unrealized gains | 2,387 | 3,846 |
Gross unrealized losses | (9,691) | (830) |
Held-to-maturity investment securities | $ 444,503 | $ 229,963 |
Less than 12 months: Number of issues | issue | 23 | 7 |
Less than 12 Months: Fair value | $ 325,907 | $ 114,152 |
Less than 12 Months: Amount | $ (8,278) | $ (830) |
12 months or longer: Number of issues | issue | 2 | 0 |
12 months or longer: Fair value | $ 23,860 | $ 0 |
12 months or longer: Amount | (1,413) | 0 |
Corporate bonds | American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 30,684 | 29,776 |
Gross unrealized gains | 961 | 1,575 |
Gross unrealized losses | 0 | 0 |
Available-for-sale investment securities, at fair value | $ 31,645 | $ 31,351 |
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 more, amount | 0 | 0 |
Mortgage revenue bonds | American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 15,427 | 27,185 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Available-for-sale investment securities, at fair value | $ 15,427 | $ 27,185 |
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 more, amount | $ 0 | $ 0 |
Bank segment - Contractual matu
Bank segment - Contractual maturities of investment securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Available-for-sale | |||||
Due in one year or less | $ 0 | $ 0 | |||
Due after one year through five years | 76,247 | 76,247 | |||
Due after five years through ten years | 45,268 | 45,268 | |||
Due after ten years | 15,427 | 15,427 | |||
Total amortized cost | 136,942 | 136,942 | |||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 2,471,650 | 2,471,650 | |||
Amortized cost | 2,608,592 | 2,608,592 | |||
Held-to-maturity | |||||
Due in one year or less | 0 | 0 | |||
Due after one year through five years | 0 | 0 | |||
Due after five years through ten years | 40,064 | 40,064 | |||
Due after ten years | 0 | 0 | |||
Total amortized cost | 40,064 | 40,064 | |||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 451,807 | 451,807 | |||
Amortized cost | 491,871 | 491,871 | |||
Available-for-sale | |||||
Due in one year or less | 0 | 0 | |||
Due after one year through five years | 78,071 | 78,071 | |||
Due after five years through ten years | 45,649 | 45,649 | |||
Due after ten years | 15,427 | 15,427 | |||
Total fair value | 139,147 | 139,147 | |||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 2,441,683 | 2,441,683 | |||
Total available-for-sale securities | 2,580,830 | 2,580,830 | $ 1,970,417 | ||
Held-to-maturity | |||||
Due in one year or less | 0 | 0 | |||
Due after one year through five years | 0 | 0 | |||
Due after five years through ten years | 40,151 | 40,151 | |||
Due after ten years | 0 | 0 | |||
Total fair value | 40,151 | 40,151 | |||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 444,503 | 444,503 | |||
Total held-to-maturity securities | 484,654 | 484,654 | |||
Proceeds, gross gains and losses from sales of available-for-sale securities | |||||
Proceeds | 0 | $ 0 | 197,354 | $ 169,157 | |
Gross gains | 0 | 0 | 975 | 9,312 | |
Gross losses | 0 | 0 | 447 | 37 | |
Tax expense on realized gains | $ 0 | $ 0 | $ 142 | $ 2,492 |
Bank segment - Loans receivable
Bank segment - Loans receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 5,133,584 | $ 5,345,226 | ||||
Less: Deferred fees and discounts | (11,460) | (11,383) | ||||
Allowance for credit losses | (75,944) | $ (78,252) | (101,201) | $ (91,459) | $ (81,307) | $ (53,355) |
Total loans, net | 5,046,180 | 5,232,642 | ||||
Real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 4,252,590 | 4,239,745 | ||||
Real estate | Residential 1-4 family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 2,172,073 | 2,144,239 | ||||
Allowance for credit losses | (5,998) | (5,518) | (4,600) | (3,637) | (3,911) | (2,380) |
Real estate | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 1,090,816 | 983,865 | ||||
Allowance for credit losses | (25,958) | (28,708) | (35,607) | (32,149) | (21,100) | (15,053) |
Real estate | Home equity line of credit | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 851,416 | 963,578 | ||||
Allowance for credit losses | (5,778) | (5,335) | (6,813) | (5,874) | (6,214) | (6,922) |
Real estate | Residential land | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 19,399 | 15,617 | ||||
Allowance for credit losses | (634) | (618) | (609) | (546) | (356) | (449) |
Real estate | Commercial construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 109,716 | 121,424 | ||||
Allowance for credit losses | (1,733) | (1,629) | (4,149) | (6,039) | (4,757) | (2,097) |
Real estate | Residential construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 9,170 | 11,022 | ||||
Allowance for credit losses | (13) | (16) | (11) | (11) | (14) | (3) |
Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 758,338 | 936,748 | ||||
Allowance for credit losses | (19,451) | (20,058) | (25,462) | (18,192) | (13,868) | (10,245) |
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 122,656 | 168,733 | ||||
Allowance for credit losses | $ (16,379) | $ (16,370) | $ (23,950) | $ (25,011) | $ (31,087) | $ (16,206) |
Bank segment - Allowance for cr
Bank segment - Allowance for credit losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | |
Allowance for credit losses: | |||||
Beginning balance | $ 78,252 | $ 81,307 | $ 101,201 | $ 53,355 | |
Charge-offs | (1,915) | (5,608) | (7,856) | (19,619) | |
Recoveries | 1,582 | 1,290 | 4,566 | 3,078 | |
Provision for credit losses | (1,975) | 14,470 | (21,967) | 35,204 | |
Ending balance | 75,944 | 91,459 | 75,944 | 91,459 | $ 53,355 |
Accounting standards update, extensible enumeration | Accounting Standards Update 2016-13 [Member] | ||||
Real estate | Residential 1-4 family | |||||
Allowance for credit losses: | |||||
Beginning balance | 5,518 | 3,911 | 4,600 | 2,380 | |
Charge-offs | (47) | 0 | (67) | (7) | |
Recoveries | 5 | 12 | 59 | 67 | |
Provision for credit losses | 522 | (286) | 1,406 | (953) | |
Ending balance | 5,998 | 3,637 | 5,998 | 3,637 | $ 2,380 |
Real estate | Commercial real estate | |||||
Allowance for credit losses: | |||||
Beginning balance | 28,708 | 21,100 | 35,607 | 15,053 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for credit losses | (2,750) | 11,049 | (9,649) | 16,888 | |
Ending balance | 25,958 | 32,149 | 25,958 | 32,149 | 15,053 |
Real estate | Home equity line of credit | |||||
Allowance for credit losses: | |||||
Beginning balance | 5,335 | 6,214 | 6,813 | 6,922 | |
Charge-offs | (5) | 0 | (45) | 0 | |
Recoveries | 7 | 50 | 83 | 56 | |
Provision for credit losses | 441 | (390) | (1,073) | (563) | |
Ending balance | 5,778 | 5,874 | 5,778 | 5,874 | 6,922 |
Real estate | Residential land | |||||
Allowance for credit losses: | |||||
Beginning balance | 618 | 356 | 609 | 449 | |
Charge-offs | 0 | 0 | 0 | (351) | |
Recoveries | 35 | 12 | 56 | 26 | |
Provision for credit losses | (19) | 178 | (31) | 486 | |
Ending balance | 634 | 546 | 634 | 546 | 449 |
Real estate | Commercial construction | |||||
Allowance for credit losses: | |||||
Beginning balance | 1,629 | 4,757 | 4,149 | 2,097 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for credit losses | 104 | 1,282 | (2,416) | 3,653 | |
Ending balance | 1,733 | 6,039 | 1,733 | 6,039 | 2,097 |
Real estate | Residential construction | |||||
Allowance for credit losses: | |||||
Beginning balance | 16 | 14 | 11 | 3 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for credit losses | (3) | (3) | 2 | (6) | |
Ending balance | 13 | 11 | 13 | 11 | 3 |
Commercial | |||||
Allowance for credit losses: | |||||
Beginning balance | 20,058 | 13,868 | 25,462 | 10,245 | |
Charge-offs | (266) | (1,727) | (1,356) | (2,795) | |
Recoveries | 417 | 211 | 1,056 | 503 | |
Provision for credit losses | (758) | 5,840 | (5,711) | 9,317 | |
Ending balance | 19,451 | 18,192 | 19,451 | 18,192 | 10,245 |
Consumer | |||||
Allowance for credit losses: | |||||
Beginning balance | 16,370 | 31,087 | 23,950 | 16,206 | |
Charge-offs | (1,597) | (3,881) | (6,388) | (16,466) | |
Recoveries | 1,118 | 1,005 | 3,312 | 2,426 | |
Provision for credit losses | 488 | (3,200) | (4,495) | 6,382 | |
Ending balance | $ 16,379 | $ 25,011 | $ 16,379 | 25,011 | 16,206 |
Impact of adoption of ASU No. 2016-13 | |||||
Allowance for credit losses: | |||||
Beginning balance | 19,441 | ||||
Ending balance | 19,441 | ||||
Impact of adoption of ASU No. 2016-13 | Real estate | Residential 1-4 family | |||||
Allowance for credit losses: | |||||
Beginning balance | 2,150 | ||||
Ending balance | 2,150 | ||||
Impact of adoption of ASU No. 2016-13 | Real estate | Commercial real estate | |||||
Allowance for credit losses: | |||||
Beginning balance | 208 | ||||
Ending balance | 208 | ||||
Impact of adoption of ASU No. 2016-13 | Real estate | Home equity line of credit | |||||
Allowance for credit losses: | |||||
Beginning balance | (541) | ||||
Ending balance | (541) | ||||
Impact of adoption of ASU No. 2016-13 | Real estate | Residential land | |||||
Allowance for credit losses: | |||||
Beginning balance | (64) | ||||
Ending balance | (64) | ||||
Impact of adoption of ASU No. 2016-13 | Real estate | Commercial construction | |||||
Allowance for credit losses: | |||||
Beginning balance | 289 | ||||
Ending balance | 289 | ||||
Impact of adoption of ASU No. 2016-13 | Real estate | Residential construction | |||||
Allowance for credit losses: | |||||
Beginning balance | 14 | ||||
Ending balance | 14 | ||||
Impact of adoption of ASU No. 2016-13 | Commercial | |||||
Allowance for credit losses: | |||||
Beginning balance | 922 | ||||
Ending balance | 922 | ||||
Impact of adoption of ASU No. 2016-13 | Consumer | |||||
Allowance for credit losses: | |||||
Beginning balance | $ 16,463 | ||||
Ending balance | $ 16,463 |
Bank segment - Allowance for lo
Bank segment - Allowance for loan commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Allowance for loan commitments: | ||||
Beginning balance | $ 3,650 | $ 8,100 | $ 4,300 | $ 1,741 |
Provision | 250 | (500) | (400) | 4,300 |
Ending balance | 3,900 | 7,600 | 3,900 | 7,600 |
Real estate | Home equity line of credit | ||||
Allowance for loan commitments: | ||||
Beginning balance | 400 | 300 | 300 | 392 |
Provision | 0 | 0 | 100 | 0 |
Ending balance | 400 | 300 | 400 | 300 |
Real estate | Commercial construction | ||||
Allowance for loan commitments: | ||||
Beginning balance | 2,400 | 7,500 | 3,000 | 931 |
Provision | 300 | (800) | (300) | 4,024 |
Ending balance | 2,700 | 6,700 | 2,700 | 6,700 |
Commercial | ||||
Allowance for loan commitments: | ||||
Beginning balance | 850 | 300 | 1,000 | 418 |
Provision | (50) | 300 | (200) | 276 |
Ending balance | $ 800 | $ 600 | $ 800 | 600 |
Impact of adoption of ASU No. 2016-13 | ||||
Allowance for loan commitments: | ||||
Beginning balance | 1,559 | |||
Impact of adoption of ASU No. 2016-13 | Real estate | Home equity line of credit | ||||
Allowance for loan commitments: | ||||
Beginning balance | (92) | |||
Impact of adoption of ASU No. 2016-13 | Real estate | Commercial construction | ||||
Allowance for loan commitments: | ||||
Beginning balance | 1,745 | |||
Impact of adoption of ASU No. 2016-13 | Commercial | ||||
Allowance for loan commitments: | ||||
Beginning balance | $ (94) |
Bank segment - Credit risk prof
Bank segment - Credit risk profile - payment activity and assigned grades (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Credit risk profile by internally assigned grade for loans | ||
Current Year | $ 956,609 | $ 1,339,586 |
One Year before Current Year | 965,198 | 590,363 |
Two Years before Current Year | 427,762 | 382,648 |
Three Years before Current Year | 269,681 | 335,784 |
Four Years before Current Year | 251,518 | 368,904 |
Prior | 1,221,251 | 1,172,236 |
Revolving | 978,579 | 1,093,287 |
Converted to term loans | 62,986 | 62,418 |
Total | 5,133,584 | 5,345,226 |
Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 4,252,590 | 4,239,745 |
Real estate | Residential 1-4 family | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 541,140 | 567,282 |
One Year before Current Year | 472,035 | 219,464 |
Two Years before Current Year | 154,653 | 111,243 |
Three Years before Current Year | 76,251 | 204,269 |
Four Years before Current Year | 142,235 | 184,888 |
Prior | 785,759 | 857,093 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 2,172,073 | 2,144,239 |
Real estate | Home equity line of credit | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 810,828 | 929,388 |
Converted to term loans | 40,588 | 34,190 |
Total | 851,416 | 963,578 |
Real estate | Residential land | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 8,905 | 8,357 |
One Year before Current Year | 7,341 | 3,427 |
Two Years before Current Year | 1,659 | 1,598 |
Three Years before Current Year | 647 | 939 |
Four Years before Current Year | 268 | 22 |
Prior | 579 | 1,274 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 19,399 | 15,617 |
Real estate | Residential construction | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 4,664 | 6,919 |
One Year before Current Year | 4,238 | 3,093 |
Two Years before Current Year | 0 | 385 |
Three Years before Current Year | 0 | 625 |
Four Years before Current Year | 268 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 9,170 | 11,022 |
Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 144,337 | 280,864 |
One Year before Current Year | 283,178 | 114,426 |
Two Years before Current Year | 111,545 | 124,301 |
Three Years before Current Year | 108,493 | 64,087 |
Four Years before Current Year | 80,689 | 127,799 |
Prior | 351,286 | 261,388 |
Revolving | 11,288 | 11,000 |
Converted to term loans | 0 | 0 |
Total | 1,090,816 | 983,865 |
Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 11,225 | 16,390 |
One Year before Current Year | 39,137 | 31,965 |
Two Years before Current Year | 25,913 | 26,990 |
Three Years before Current Year | 11,342 | 18,000 |
Four Years before Current Year | 0 | 5,562 |
Prior | 0 | 0 |
Revolving | 22,099 | 22,517 |
Converted to term loans | 0 | 0 |
Total | 109,716 | 121,424 |
Consumer | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 27,318 | 29,546 |
One Year before Current Year | 19,012 | 69,325 |
Two Years before Current Year | 39,833 | 38,635 |
Three Years before Current Year | 17,016 | 7,646 |
Four Years before Current Year | 1,015 | 307 |
Prior | 283 | 348 |
Revolving | 14,081 | 18,848 |
Converted to term loans | 4,098 | 4,078 |
Total | 122,656 | 168,733 |
Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 219,020 | 430,228 |
One Year before Current Year | 140,257 | 148,663 |
Two Years before Current Year | 94,159 | 79,496 |
Three Years before Current Year | 55,932 | 40,218 |
Four Years before Current Year | 27,043 | 50,326 |
Prior | 83,344 | 52,133 |
Revolving | 120,283 | 111,534 |
Converted to term loans | 18,300 | 24,150 |
Total | 758,338 | 936,748 |
Pass | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 142,977 | 270,603 |
One Year before Current Year | 278,941 | 63,301 |
Two Years before Current Year | 62,907 | 62,168 |
Three Years before Current Year | 60,174 | 28,432 |
Four Years before Current Year | 55,824 | 55,089 |
Prior | 257,110 | 155,654 |
Revolving | 11,288 | 11,000 |
Converted to term loans | 0 | 0 |
Total | 869,221 | 646,247 |
Pass | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 11,225 | 14,480 |
One Year before Current Year | 39,137 | 31,965 |
Two Years before Current Year | 25,913 | 26,990 |
Three Years before Current Year | 11,342 | 0 |
Four Years before Current Year | 0 | 5,562 |
Prior | 0 | 0 |
Revolving | 22,099 | 22,517 |
Converted to term loans | 0 | 0 |
Total | 109,716 | 101,514 |
Pass | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 218,541 | 392,088 |
One Year before Current Year | 112,545 | 117,791 |
Two Years before Current Year | 78,076 | 75,533 |
Three Years before Current Year | 53,829 | 29,211 |
Four Years before Current Year | 19,043 | 12,520 |
Prior | 60,661 | 35,770 |
Revolving | 93,979 | 74,520 |
Converted to term loans | 16,334 | 11,004 |
Total | 653,008 | 748,437 |
Special Mention | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 1,360 | 10,261 |
One Year before Current Year | 4,237 | 36,405 |
Two Years before Current Year | 34,617 | 57,952 |
Three Years before Current Year | 46,447 | 33,763 |
Four Years before Current Year | 23,027 | 68,287 |
Prior | 42,850 | 48,094 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 152,538 | 254,762 |
Special Mention | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 1,910 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 18,000 |
Four Years before Current Year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 19,910 |
Special Mention | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 52 | 37,836 |
One Year before Current Year | 27,498 | 23,087 |
Two Years before Current Year | 11,810 | 1,920 |
Three Years before Current Year | 279 | 6,990 |
Four Years before Current Year | 2,682 | 30,264 |
Prior | 19,495 | 13,250 |
Revolving | 20,459 | 31,362 |
Converted to term loans | 21 | 11,218 |
Total | 82,296 | 155,927 |
Substandard | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 14,720 |
Two Years before Current Year | 14,021 | 4,181 |
Three Years before Current Year | 1,872 | 1,892 |
Four Years before Current Year | 1,838 | 4,423 |
Prior | 51,326 | 57,640 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 69,057 | 82,856 |
Substandard | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Substandard | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 427 | 304 |
One Year before Current Year | 214 | 7,785 |
Two Years before Current Year | 4,273 | 2,043 |
Three Years before Current Year | 1,824 | 4,017 |
Four Years before Current Year | 5,318 | 7,542 |
Prior | 3,188 | 3,113 |
Revolving | 5,845 | 5,265 |
Converted to term loans | 1,945 | 1,928 |
Total | 23,034 | 31,997 |
Doubtful | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 387 |
Converted to term loans | 0 | 0 |
Total | 0 | 387 |
Current | Real estate | Residential 1-4 family | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 541,140 | 567,282 |
One Year before Current Year | 471,759 | 218,988 |
Two Years before Current Year | 150,704 | 111,243 |
Three Years before Current Year | 75,827 | 203,916 |
Four Years before Current Year | 142,235 | 184,888 |
Prior | 778,048 | 849,788 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 2,159,713 | 2,136,105 |
Current | Real estate | Home equity line of credit | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 809,566 | 927,106 |
Converted to term loans | 39,932 | 33,228 |
Total | 849,498 | 960,334 |
Current | Real estate | Residential land | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 8,905 | 8,357 |
One Year before Current Year | 7,341 | 3,427 |
Two Years before Current Year | 1,659 | 1,598 |
Three Years before Current Year | 647 | 939 |
Four Years before Current Year | 268 | 22 |
Prior | 182 | 272 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 19,002 | 14,615 |
Current | Real estate | Residential construction | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 4,664 | 6,919 |
One Year before Current Year | 4,238 | 3,093 |
Two Years before Current Year | 0 | 385 |
Three Years before Current Year | 0 | 625 |
Four Years before Current Year | 268 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 9,170 | 11,022 |
Current | Consumer | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 27,059 | 28,818 |
One Year before Current Year | 18,662 | 67,159 |
Two Years before Current Year | 38,546 | 37,072 |
Three Years before Current Year | 16,378 | 7,207 |
Four Years before Current Year | 907 | 293 |
Prior | 283 | 348 |
Revolving | 13,745 | 18,351 |
Converted to term loans | 3,819 | 3,758 |
Total | 119,399 | 163,006 |
30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 4,940 | 7,394 |
30-59 days past due | Real estate | Residential 1-4 family | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 2,224 | 2,629 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 2,224 | 2,629 |
30-59 days past due | Real estate | Home equity line of credit | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 126 | 552 |
Converted to term loans | 129 | 298 |
Total | 255 | 850 |
30-59 days past due | Real estate | Residential land | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 97 | 702 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 97 | 702 |
30-59 days past due | Real estate | Residential construction | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
30-59 days past due | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
30-59 days past due | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
30-59 days past due | Consumer | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 206 | 406 |
One Year before Current Year | 152 | 1,085 |
Two Years before Current Year | 523 | 727 |
Three Years before Current Year | 282 | 155 |
Four Years before Current Year | 21 | 4 |
Prior | 0 | 0 |
Revolving | 126 | 138 |
Converted to term loans | 117 | 90 |
Total | 1,427 | 2,605 |
30-59 days past due | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 937 | 608 |
60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 2,640 | 5,411 |
60-89 days past due | Real estate | Residential 1-4 family | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 276 | 476 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 1,308 | 2,314 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 1,584 | 2,790 |
60-89 days past due | Real estate | Home equity line of credit | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 107 | 267 |
Converted to term loans | 101 | 75 |
Total | 208 | 342 |
60-89 days past due | Real estate | Residential land | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
60-89 days past due | Real estate | Residential construction | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
60-89 days past due | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 488 |
60-89 days past due | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
60-89 days past due | Consumer | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 24 | 191 |
One Year before Current Year | 58 | 549 |
Two Years before Current Year | 368 | 427 |
Three Years before Current Year | 198 | 165 |
Four Years before Current Year | 43 | 3 |
Prior | 0 | 0 |
Revolving | 61 | 97 |
Converted to term loans | 28 | 59 |
Total | 780 | 1,491 |
60-89 days past due | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 68 | 300 |
Greater than 89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 11,467 | 6,830 |
Greater than 89 days past due | Real estate | Residential 1-4 family | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 3,949 | 0 |
Three Years before Current Year | 424 | 353 |
Four Years before Current Year | 0 | 0 |
Prior | 4,179 | 2,362 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 8,552 | 2,715 |
Greater than 89 days past due | Real estate | Home equity line of credit | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 1,029 | 1,463 |
Converted to term loans | 426 | 589 |
Total | 1,455 | 2,052 |
Greater than 89 days past due | Real estate | Residential land | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 300 | 300 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 300 | 300 |
Greater than 89 days past due | Real estate | Residential construction | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year before Current Year | 0 | 0 |
Two Years before Current Year | 0 | 0 |
Three Years before Current Year | 0 | 0 |
Four Years before Current Year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Greater than 89 days past due | Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
Greater than 89 days past due | Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
Greater than 89 days past due | Consumer | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 29 | 131 |
One Year before Current Year | 140 | 532 |
Two Years before Current Year | 396 | 409 |
Three Years before Current Year | 158 | 119 |
Four Years before Current Year | 44 | 7 |
Prior | 0 | 0 |
Revolving | 149 | 262 |
Converted to term loans | 134 | 171 |
Total | 1,050 | 1,631 |
Greater than 89 days past due | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Total | $ 110 | $ 132 |
Bank segment - Credit risk pr_2
Bank segment - Credit risk profile - payment activity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Credit risk profile based on payment activity for loans | ||
Total financing receivables | $ 5,133,584 | $ 5,345,226 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 4,252,590 | 4,239,745 |
Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,172,073 | 2,144,239 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,090,816 | 983,865 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 851,416 | 963,578 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 19,399 | 15,617 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 109,716 | 121,424 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 9,170 | 11,022 |
Amortized cost> 90 days and accruing | 0 | 0 |
Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 758,338 | 936,748 |
Amortized cost> 90 days and accruing | 0 | 0 |
Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 122,656 | 168,733 |
Amortized cost> 90 days and accruing | 0 | 0 |
30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 4,940 | 7,394 |
30-59 days past due | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,224 | 2,629 |
30-59 days past due | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
30-59 days past due | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 255 | 850 |
30-59 days past due | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 97 | 702 |
30-59 days past due | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
30-59 days past due | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
30-59 days past due | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 937 | 608 |
30-59 days past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,427 | 2,605 |
60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,640 | 5,411 |
60-89 days past due | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,584 | 2,790 |
60-89 days past due | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 488 |
60-89 days past due | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 208 | 342 |
60-89 days past due | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
60-89 days past due | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
60-89 days past due | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
60-89 days past due | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 68 | 300 |
60-89 days past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 780 | 1,491 |
Greater than 90 days | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 11,467 | 6,830 |
Greater than 90 days | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 8,552 | 2,715 |
Greater than 90 days | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Greater than 90 days | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,455 | 2,052 |
Greater than 90 days | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 300 | 300 |
Greater than 90 days | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Greater than 90 days | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Greater than 90 days | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 110 | 132 |
Greater than 90 days | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,050 | 1,631 |
Total past due | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 19,047 | 19,635 |
Total past due | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 12,360 | 8,134 |
Total past due | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 488 |
Total past due | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,918 | 3,244 |
Total past due | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 397 | 1,002 |
Total past due | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Total past due | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Total past due | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,115 | 1,040 |
Total past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 3,257 | 5,727 |
Current | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 5,114,537 | 5,325,591 |
Current | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,159,713 | 2,136,105 |
Current | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,090,816 | 983,377 |
Current | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 849,498 | 960,334 |
Current | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 19,002 | 14,615 |
Current | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 109,716 | 121,424 |
Current | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 9,170 | 11,022 |
Current | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 757,223 | 935,708 |
Current | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | $ 119,399 | $ 163,006 |
Bank segment - Credit risk pr_3
Bank segment - Credit risk profile - nonaccrual loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | $ 36,801 | $ 36,491 |
Without a Related ACL | 12,992 | 10,905 |
Total | 49,793 | 47,396 |
Total troubled debt restructuring loans not included above | 25,955 | 27,078 |
Real estate | Residential 1-4 family | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 13,307 | 8,991 |
Without a Related ACL | 7,997 | 2,835 |
Total | 21,304 | 11,826 |
Total troubled debt restructuring loans not included above | 7,545 | 7,932 |
Real estate | Commercial real estate | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 15,062 | 15,847 |
Without a Related ACL | 1,251 | 2,875 |
Total | 16,313 | 18,722 |
Total troubled debt restructuring loans not included above | 3,136 | 3,281 |
Real estate | Home equity line of credit | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 4,564 | 5,791 |
Without a Related ACL | 1,364 | 1,567 |
Total | 5,928 | 7,358 |
Total troubled debt restructuring loans not included above | 6,986 | 8,148 |
Real estate | Residential land | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 97 | 108 |
Without a Related ACL | 300 | 300 |
Total | 397 | 408 |
Total troubled debt restructuring loans not included above | 985 | 1,555 |
Real estate | Commercial construction | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 0 | 0 |
Without a Related ACL | 0 | 0 |
Total | 0 | 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 | 0 |
Without a Related ACL | 0 | 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 | 1,573 | 1,819 |
Without a Related ACL | 2,080 | 3,328 |
Total | 3,653 | 5,147 |
Total troubled debt restructuring loans not included above | 7,251 | 6,108 |
Consumer | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 2,198 | 3,935 |
Without a Related ACL | 0 | 0 |
Total | 2,198 | 3,935 |
Total troubled debt restructuring loans not included above | $ 52 | $ 54 |
Bank segment - Loan modificatio
Bank segment - Loan modifications (Details) - Troubled debt restructurings real estate loans $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($)contract | Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 3 | 2 | 26 | 12 |
Outstanding recorded investment | $ 3,075 | $ 52 | $ 13,843 | $ 16,752 |
Related allowance | $ 304 | $ 45 | $ 588 | $ 4,222 |
Real estate | Residential 1-4 family | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 1 | 0 | 16 | 1 |
Outstanding recorded investment | $ 442 | $ 0 | $ 10,363 | $ 146 |
Related allowance | $ 81 | $ 0 | $ 309 | $ 7 |
Real estate | Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 2 |
Outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 16,149 |
Related allowance | $ 0 | $ 0 | $ 0 | $ 4,019 |
Real estate | Home equity line of credit | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 2 |
Outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 22 |
Related allowance | $ 0 | $ 0 | $ 0 | $ 1 |
Real estate | Residential land | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 1 | 0 | 3 | 2 |
Outstanding recorded investment | $ 247 | $ 0 | $ 802 | $ 228 |
Related allowance | $ 11 | $ 0 | $ 37 | $ 15 |
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 |
Related 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 |
Related allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 1 | 2 | 7 | 5 |
Outstanding recorded investment | $ 2,386 | $ 52 | $ 2,678 | $ 207 |
Related allowance | $ 212 | $ 45 | $ 242 | $ 180 |
Consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Related allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Bank segment - Troubled debt re
Bank segment - Troubled debt restructuring - narrative (Details) - Troubled debt restructurings real estate loans - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Troubled debt restructurings | |||||
Financing receivable modifications minimum, period of payment default of loans determined to be TDRs (in days) | 90 days | 90 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 | $ 3.4 | $ 3.4 | $ 3.8 |
Bank segment - Collateral-depen
Bank segment - Collateral-dependent loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Residential real estate property | Real estate | Residential 1-4 family | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | $ 5,268 | $ 2,541 |
Residential real estate property | Real estate | Home equity line of credit | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 1,364 | 1,567 |
Residential real estate property | Real estate | Residential land | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 300 | 300 |
Commercial real estate | Real estate | Commercial real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 1,251 | 2,875 |
Collateral pledged | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 8,963 | 8,217 |
Collateral pledged | Real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 8,183 | 7,283 |
Business assets | Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | $ 780 | $ 934 |
Bank segment - Mortgage servici
Bank segment - Mortgage servicing rights (Details) - American Savings Bank (ASB) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Servicing Asset at Amortized Cost [Line Items] | |||||
Repurchase reserve | $ 100 | $ 100 | $ 100 | $ 100 | |
Mortgage service fees | 1,000 | 900 | 2,800 | 2,500 | |
Mortgage servicing rights | |||||
Servicing asset - beginning balance | 10,020 | ||||
Servicing asset - ending balance | 10,272 | 10,272 | |||
Residential loan | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Proceeds from sale of residential loans | 38,300 | 128,000 | 304,800 | 387,200 | |
Gain on sale of mortgage loans | 1,300 | 7,700 | 7,500 | 15,900 | |
Servicing contracts | |||||
Changes in Carrying Value of MSRs | |||||
Gross carrying amount | 22,182 | 22,182 | $ 22,950 | ||
Accumulated amortization | (11,910) | (11,910) | (12,670) | ||
Valuation allowance | 0 | (382) | 0 | (382) | (260) |
Net carrying amount | 10,272 | 9,553 | 10,272 | 9,553 | 10,020 |
Mortgage servicing rights | |||||
Servicing asset - beginning balance | 10,754 | 9,911 | 10,280 | 9,101 | |
Amount capitalized | 315 | 1,119 | 2,885 | 3,481 | |
Amortization | (797) | (1,095) | (2,893) | (2,647) | |
Other-than-temporary impairment | 0 | 0 | 0 | 0 | |
Servicing asset - ending balance | 10,272 | 9,935 | 10,272 | 9,935 | |
Valuation allowance for mortgage servicing rights | |||||
Valuation allowance, beginning balance | 0 | 264 | 260 | 0 | |
Provision | 0 | 118 | (260) | 382 | |
Other-than-temporary impairment | 0 | 0 | 0 | 0 | |
Valuation allowance, ending balance | 0 | $ 382 | 0 | $ 382 | |
Unpaid principal balance | 1,521,966 | 1,521,966 | 1,450,312 | ||
Prepayment rate: | |||||
25 basis points adverse rate change | (1,045) | (1,045) | (738) | ||
50 basis points adverse rate change | (2,209) | (2,209) | (1,445) | ||
Discount rate: | |||||
25 basis points adverse rate change | (115) | (115) | (68) | ||
50 basis points adverse rate change | $ (229) | $ (229) | $ (135) | ||
Servicing contracts | Note rate | |||||
Valuation allowance for mortgage servicing rights | |||||
Weighted average measurement input | 0.0342 | 0.0342 | 0.0368 | ||
Servicing contracts | Discount rate | |||||
Valuation allowance for mortgage servicing rights | |||||
Weighted average measurement input | 0.0925 | 0.0925 | 0.0925 | ||
Servicing contracts | Prepayment speed | |||||
Valuation allowance for mortgage servicing rights | |||||
Weighted average measurement input | 0.117 | 0.117 | 0.177 |
Bank segment - Other borrowings
Bank segment - Other borrowings (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Offsetting Liabilities [Line Items] | ||
Gross amount of recognized liabilities | $ 129 | $ 90 |
Gross amount offset in the Balance Sheets | 0 | 0 |
Net amount of liabilities presented in the Balance Sheets | 129 | 90 |
Commercial account holders | ||
Offsetting Liabilities [Line Items] | ||
Net amount of liabilities presented in the Balance Sheets | 129 | 90 |
Financial instruments | 146 | 92 |
Cash collateral pledged | $ 0 | $ 0 |
Bank segment - Derivatives (Det
Bank segment - Derivatives (Details) - Derivative Financial Instruments Not Designated as Hedging Instruments - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Derivative instrument | |||||
Asset derivatives | $ 429 | $ 429 | $ 4,536 | ||
Liability derivatives | 12 | 12 | 500 | ||
Net gains (losses) recognized in the Statement of Income | 87 | $ 2,974 | (3,619) | $ 4,773 | |
Interest rate lock commitments | |||||
Derivative instrument | |||||
Notional amount | 22,289 | 22,289 | 120,980 | ||
Fair value | 308 | 308 | 4,536 | ||
Asset derivatives | 308 | 308 | 4,536 | ||
Liability derivatives | 0 | 0 | 0 | ||
Interest rate lock commitments | Mortgage banking income | |||||
Derivative instrument | |||||
Net gains (losses) recognized in the Statement of Income | (63) | 2,930 | (4,228) | 4,974 | |
Forward commitments | |||||
Derivative instrument | |||||
Notional amount | 21,750 | 21,750 | 100,500 | ||
Fair value | 109 | 109 | (500) | ||
Asset derivatives | 121 | 121 | 0 | ||
Liability derivatives | 12 | 12 | $ 500 | ||
Forward commitments | Mortgage banking income | |||||
Derivative instrument | |||||
Net gains (losses) recognized in the Statement of Income | $ 150 | $ 44 | $ 609 | $ (201) |
Bank segment - Contingencies (D
Bank segment - Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
American Savings Bank (ASB) | ||
Loss Contingencies [Line Items] | ||
Unfunded commitments to fund the company's LIHTC | $ 37.8 | $ 41 |
Credit agreements and changes_3
Credit agreements and changes in long-term debt - Narrative (Details) | Sep. 03, 2021USD ($)project | May 14, 2021USD ($)institutionextensionOption | Apr. 19, 2021USD ($) | Nov. 30, 2022USD ($) | Sep. 30, 2021USD ($) | Sep. 29, 2021USD ($)entity | Sep. 14, 2021 | May 13, 2021USD ($) | Dec. 31, 2020USD ($) |
HEI Facility | |||||||||
Credit agreement | |||||||||
Annual fees | 0.20% | ||||||||
HEI Facility | LIBOR | |||||||||
Credit agreement | |||||||||
Basis spread on variable rate | 1.375% | ||||||||
Hawaiian Electric Facility | |||||||||
Credit agreement | |||||||||
Credit agreement | $ 200,000,000 | $ 275,000,000 | |||||||
Number of extension options | extensionOption | 2 | ||||||||
Extension period | 1 year | ||||||||
Annual fees | 0.175% | ||||||||
Hawaiian Electric Facility | LIBOR | |||||||||
Credit agreement | |||||||||
Basis spread on variable rate | 1.25% | ||||||||
Mauo Credit Agreement | Secured Debt | |||||||||
Credit agreement | |||||||||
Aggregate principal amount | $ 24,000,000 | ||||||||
Drawn amount | $ 13,000,000 | ||||||||
Number of solar-battery projects | project | 5 | ||||||||
Number of solar-battery projects collateralized | project | 3 | ||||||||
Fixed coupon interest rate | 4.90% | ||||||||
Mauo Credit Agreement | LIBOR | Secured Debt | |||||||||
Credit agreement | |||||||||
Basis spread on variable rate | 1.70% | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||
Credit agreement | |||||||||
Short-term borrowings from non-affiliates | $ 0 | $ 49,979,000 | |||||||
Equity capitalization ratio | 58.00% | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Forecast | |||||||||
Credit agreement | |||||||||
Refinanced debt | $ 150,000,000 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Credit Facilities | |||||||||
Credit agreement | |||||||||
Number of financial institutions | institution | 9 | ||||||||
Line of credit outstanding | $ 0 | $ 0 | |||||||
Debt to capitalization ratios | 0.65 | ||||||||
Capitalization ratio | 0.50 | ||||||||
Consolidation capitalization ratio | 0.35 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | HEI Facility | |||||||||
Credit agreement | |||||||||
Credit agreement | $ 175,000,000 | $ 150,000,000 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Unsecured Senior Notes | Senior Notes | |||||||||
Credit agreement | |||||||||
Aggregate principal amount | $ 125,000,000 | ||||||||
Number of tranches | entity | 2 | ||||||||
Hawaiian Electric, Parent | 364-Day Revolver | Revolving Credit Facility | Line of credit facility | |||||||||
Credit agreement | |||||||||
Maximum borrowing | $ 75,000,000 | ||||||||
Debt term | 364 days | ||||||||
Short-term borrowings from non-affiliates | $ 0 |
Credit agreements and changes_4
Credit agreements and changes in long-term debt - Note purchase agreements (Details) - Senior Notes | Sep. 30, 2021USD ($) |
HEI Series 2021A | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 30,000,000 |
Fixed coupon interest rate | 2.48% |
HEI Series 2021B | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 25,000,000 |
Fixed coupon interest rate | 2.78% |
HEI Series 2021C | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 20,000,000 |
Fixed coupon interest rate | 3.74% |
HEI Series 2022A | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 30,000,000 |
Fixed coupon interest rate | 2.98% |
HEI Series 2022B | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 20,000,000 |
Fixed coupon interest rate | 3.94% |
Shareholders' equity - Accumula
Shareholders' equity - Accumulated other comprehensive income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | $ 2,367,329 | $ 2,321,293 | $ 2,337,502 | $ 2,291,398 | $ 2,276,505 | $ 2,280,260 | $ 2,337,502 | $ 2,280,260 |
Current period other comprehensive income (loss) | (11,305) | 16,472 | (44,016) | 1,440 | (332) | 18,212 | (38,849) | 19,320 |
Ending balance | 2,383,543 | 2,367,329 | 2,321,293 | 2,323,231 | 2,291,398 | 2,276,505 | 2,383,543 | 2,323,231 |
AOCI | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (28,808) | (45,280) | (1,264) | (2,159) | (1,827) | (20,039) | (1,264) | (20,039) |
Current period other comprehensive income (loss) | (11,305) | 16,472 | (44,016) | 1,440 | (332) | 18,212 | ||
Ending balance | (40,113) | (28,808) | (45,280) | (719) | (2,159) | (1,827) | (40,113) | (719) |
Net unrealized gains (losses) on securities | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | 19,986 | 2,481 | 19,986 | 2,481 | ||||
Current period other comprehensive income (loss) | (40,308) | 19,767 | ||||||
Ending balance | (20,322) | 22,248 | (20,322) | 22,248 | ||||
Unrealized gains (losses) on derivatives | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (3,363) | (1,613) | (3,363) | (1,613) | ||||
Current period other comprehensive income (loss) | 1,009 | (2,129) | ||||||
Ending balance | (2,354) | (3,742) | (2,354) | (3,742) | ||||
Retirement benefit plans | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (17,887) | (20,907) | (17,887) | (20,907) | ||||
Current period other comprehensive income (loss) | 450 | 1,682 | ||||||
Ending balance | (17,437) | (19,225) | (17,437) | (19,225) | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | 2,171,396 | 2,157,385 | 2,141,918 | 2,060,069 | 2,044,499 | 2,047,352 | 2,141,918 | 2,047,352 |
Current period other comprehensive income (loss) | 106 | 35 | 34 | 48 | 25 | 26 | 175 | 99 |
Ending balance | 2,193,919 | 2,171,396 | 2,157,385 | 2,093,398 | 2,060,069 | 2,044,499 | 2,193,919 | 2,093,398 |
Hawaiian Electric Company, Inc. and Subsidiaries | AOCI | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (2,850) | (2,885) | (2,919) | (1,228) | (1,253) | (1,279) | (2,919) | (1,279) |
Current period other comprehensive income (loss) | 106 | 35 | 34 | 48 | 25 | 26 | ||
Ending balance | (2,744) | $ (2,850) | (2,885) | (1,180) | $ (1,228) | (1,253) | (2,744) | (1,180) |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | $ (2,919) | $ (1,279) | (2,919) | (1,279) | ||||
Current period other comprehensive income (loss) | 175 | 99 | ||||||
Ending balance | $ (2,744) | $ (1,180) | $ (2,744) | $ (1,180) |
Shareholders' equity - Reclassi
Shareholders' equity - Reclassification out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Gain on sale of investment securities, net | $ 0 | $ 0 | $ (528) | $ (9,275) |
Interest expense | 23,477 | 22,086 | 70,530 | 66,474 |
Total reclassifications | (63,886) | (65,503) | (193,062) | (148,756) |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 63 | 603 | 72 | 44 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | (50,840) | (60,563) | (137,097) | (127,795) |
Hawaiian Electric Company, Inc. and Subsidiaries | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 106 | 48 | 175 | 99 |
Net realized gains on securities included in net income | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Gain on sale of investment securities, net | 0 | 0 | (387) | (1,638) |
Net realized losses on derivatives qualifying as cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Interest expense | 9 | 0 | 9 | 0 |
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 2,853 | 6,324 | 14,871 | 17,720 |
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | Hawaiian Electric Company, Inc. and Subsidiaries | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 2,905 | 5,769 | 14,596 | 16,137 |
Impact of D&Os of the PUC included in regulatory assets | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | (2,799) | (5,721) | (14,421) | (16,038) |
Impact of D&Os of the PUC included in regulatory assets | Hawaiian Electric Company, Inc. and Subsidiaries | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | $ (2,799) | $ (5,721) | $ (14,421) | $ (16,038) |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 690,618 | $ 550,412 | $ 1,836,745 | $ 1,701,967 |
Total revenues from other sources | 66,286 | 91,015 | 243,362 | 225,591 |
Revenues | 756,904 | 641,427 | 2,080,107 | 1,927,558 |
Services/goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 11,186 | 9,589 | 34,133 | 28,356 |
Services/goods transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 679,432 | 540,823 | 1,802,612 | 1,673,611 |
Electric energy sales - residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 228,878 | 191,321 | 606,435 | 569,177 |
Electric energy sales - commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 217,468 | 171,156 | 578,036 | 528,135 |
Electric energy sales - large light and power | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 229,129 | 176,200 | 607,480 | 568,887 |
Electric energy sales - other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,779 | 1,935 | 7,470 | 7,172 |
Bank fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 11,186 | 9,589 | 34,133 | 28,356 |
Other sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,178 | 211 | 3,191 | 240 |
Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | (5,717) | 15,457 | 25,566 | 2,979 |
Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 61,441 | 59,640 | 182,127 | 184,444 |
Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 3,581 | 9,415 | 14,339 | 20,296 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 6,981 | 6,503 | 21,330 | 17,872 |
Electric utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 678,254 | 540,612 | 1,799,421 | 1,673,371 |
Total revenues from other sources | 1,245 | 21,956 | 46,821 | 20,854 |
Revenues | 679,499 | 562,568 | 1,846,242 | 1,694,225 |
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 | 678,254 | 540,612 | 1,799,421 | 1,673,371 |
Electric utility | Electric energy sales - residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 228,878 | 191,321 | 606,435 | 569,177 |
Electric utility | Electric energy sales - commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 217,468 | 171,156 | 578,036 | 528,135 |
Electric utility | Electric energy sales - large light and power | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 229,129 | 176,200 | 607,480 | 568,887 |
Electric utility | Electric energy sales - other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,779 | 1,935 | 7,470 | 7,172 |
Electric utility | Bank fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Electric utility | Other sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Electric utility | Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | (5,717) | 15,457 | 25,566 | 2,979 |
Electric utility | Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 0 | 0 | 0 | 0 |
Electric utility | Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 0 | 0 | 0 | 0 |
Electric utility | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 6,962 | 6,499 | 21,255 | 17,875 |
Bank | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 11,186 | 9,589 | 34,133 | 28,356 |
Total revenues from other sources | 65,022 | 69,055 | 196,466 | 204,740 |
Revenues | 76,208 | 78,644 | 230,599 | 233,096 |
Bank | Services/goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 11,186 | 9,589 | 34,133 | 28,356 |
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 | 11,186 | 9,589 | 34,133 | 28,356 |
Bank | Other sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 0 | 0 | 0 | 0 |
Bank | Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 61,441 | 59,640 | 182,127 | 184,444 |
Bank | Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 3,581 | 9,415 | 14,339 | 20,296 |
Bank | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,178 | 211 | 3,191 | 240 |
Total revenues from other sources | 19 | 4 | 75 | (3) |
Revenues | 1,197 | 215 | 3,266 | 237 |
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 | 1,178 | 211 | 3,191 | 240 |
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 | Other sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,178 | 211 | 3,191 | 240 |
Other | Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 0 | 0 | 0 | 0 |
Other | Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 0 | 0 | 0 | 0 |
Other | Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 0 | 0 | 0 | 0 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | $ 19 | $ 4 | $ 75 | $ (3) |
Retirement benefits (Details)
Retirement benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Defined Benefit Plan | |||||
Contributions made to defined benefit plans | $ 39,000 | $ 53,000 | |||
Contributions expected to be paid in current year | $ 52,000 | 52,000 | $ 71,000 | ||
Expected payments for remainder of fiscal year | 2,000 | 2,000 | 2,000 | ||
Retirement benefits expense | $ 35,000 | 46,000 | |||
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 | $ 4,900 | 5,500 | |||
Cash contributions by the employer to defined contribution plan | 4,800 | 6,000 | |||
Pension benefits | |||||
Defined Benefit Plan | |||||
Service cost | 20,102 | $ 18,341 | 61,031 | 55,066 | |
Interest cost | 18,896 | 20,660 | 56,497 | 60,987 | |
Expected return on plan assets | (33,022) | (28,422) | (99,157) | (85,353) | |
Amortization of net prior period (gain)/cost | 0 | 2 | 0 | 7 | |
Amortization of net actuarial (gain) losses | 10,112 | 8,944 | 20,099 | 25,059 | |
Net periodic pension/benefit cost (return) | 16,088 | 19,525 | 38,470 | 55,766 | |
Impact of PUC D&Os | 4,292 | 4,976 | 20,972 | 17,499 | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 20,380 | 24,501 | 59,442 | 73,265 | |
Other benefits | |||||
Defined Benefit Plan | |||||
Service cost | 711 | 641 | 2,121 | 1,903 | |
Interest cost | 1,459 | 1,842 | 4,597 | 5,553 | |
Expected return on plan assets | (3,252) | (3,023) | (9,717) | (9,100) | |
Amortization of net prior period (gain)/cost | (383) | (474) | (1,150) | (1,355) | |
Amortization of net actuarial (gain) losses | (140) | 53 | 158 | 154 | |
Net periodic pension/benefit cost (return) | (1,605) | (961) | (3,991) | (2,845) | |
Impact of PUC D&Os | 1,483 | 835 | 3,629 | 2,389 | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | (122) | (126) | (362) | (456) | |
American Savings Bank (ASB) | |||||
Defined Benefit Plan | |||||
Contributions expected to be paid in current year | 0 | 0 | 0 | ||
Hawaiian Electric Industries, Inc. | |||||
Defined Benefit Plan | |||||
Contributions expected to be paid in current year | 1,000 | 1,000 | 1,000 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Defined Benefit Plan | |||||
Contributions made to defined benefit plans | 38,000 | 52,000 | |||
Contributions expected to be paid in current year | 51,000 | 51,000 | 70,000 | ||
Expected payments for remainder of fiscal year | 1,000 | 1,000 | $ 1,000 | ||
Retirement benefits expense | 35,000 | 43,000 | |||
Defined contribution plan, expenses recognized | 2,300 | 2,100 | |||
Cash contributions by the employer to defined contribution plan | 2,300 | 2,100 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | Pension benefits | |||||
Defined Benefit Plan | |||||
Service cost | 19,610 | 17,921 | 59,597 | 53,703 | |
Interest cost | 17,614 | 19,183 | 52,676 | 56,613 | |
Expected return on plan assets | (31,318) | (26,815) | (94,053) | (80,527) | |
Amortization of net prior period (gain)/cost | 0 | 1 | 0 | 6 | |
Amortization of net actuarial (gain) losses | 9,880 | 8,188 | 20,651 | 22,925 | |
Net periodic pension/benefit cost (return) | 15,786 | 18,478 | 38,871 | 52,720 | |
Impact of PUC D&Os | 4,292 | 4,976 | 20,972 | 17,499 | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 20,078 | 23,454 | 59,843 | 70,219 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Other benefits | |||||
Defined Benefit Plan | |||||
Service cost | 704 | 635 | 2,101 | 1,886 | |
Interest cost | 1,398 | 1,764 | 4,406 | 5,327 | |
Expected return on plan assets | (3,202) | (2,986) | (9,566) | (8,966) | |
Amortization of net prior period (gain)/cost | (383) | (474) | (1,148) | (1,353) | |
Amortization of net actuarial (gain) losses | (138) | 53 | 155 | 155 | |
Net periodic pension/benefit cost (return) | (1,621) | (1,008) | (4,052) | (2,951) | |
Impact of PUC D&Os | 1,483 | 835 | 3,629 | 2,389 | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | $ (138) | $ (173) | $ (423) | $ (562) |
Share-based compensation - Narr
Share-based compensation - Narrative (Details) - USD ($) $ in Millions | Mar. 01, 2014 | Jun. 30, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Share-based compensation | ||||||
Income tax benefit from compensation expense | $ 0.1 | $ 0.2 | $ 1 | $ 0.9 | ||
Restricted stock units | ||||||
Share-based compensation | ||||||
Fair value of vested stock | 3 | 4.2 | ||||
Income tax benefit from compensation expense | 0.6 | 0.7 | ||||
Unrecognized share based compensation | 6.4 | $ 6.4 | ||||
Weighted average period for recognition of unrecognized compensation cost (in years) | 2 years 2 months 12 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 | $ 0.8 | 2.6 | ||||
Income tax benefit from compensation expense | 0.2 | 0.4 | ||||
Unrecognized share based compensation | 1.8 | $ 1.8 | ||||
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 | $ 1.7 | 7.6 | ||||
Income tax benefit from compensation expense | 0.4 | $ 1.2 | ||||
Unrecognized share based compensation | $ 5.7 | $ 5.7 | ||||
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) | 2,900,000 | 2,900,000 | ||||
Number of share issuable upon vesting and achievement of performance goals (in shares) | 800,000 | 800,000 | ||||
Nonemployee Director Stock Plan | ||||||
Share-based compensation | ||||||
Number of additional shares authorized (in shares) | 300,000 | |||||
Shares available for future grant (in shares) | 244,843 | 244,843 |
Share-based compensation - Summ
Share-based compensation - Summary of income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based compensation | ||||
Share-based compensation expense | $ 1.3 | $ 1.4 | $ 6.7 | $ 5.4 |
Income tax benefit | 0.1 | 0.2 | 1 | 0.9 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Share-based compensation | ||||
Share-based compensation expense | 0.1 | 0 | 2.1 | 1.2 |
Income tax benefit | $ 0 | $ 0 | $ 0.4 | $ 0.3 |
Share-based compensation - 2011
Share-based compensation - 2011 Director Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based compensation | ||||
Income tax benefit | $ 100 | $ 200 | $ 1,000 | $ 900 |
Common stock | ||||
Share-based compensation | ||||
Shares granted (in shares) | 0 | 0 | 29,320 | 36,100 |
Fair value | $ 0 | $ 0 | $ 1,200 | $ 1,300 |
Income tax benefit | $ 0 | $ 0 | $ 300 | $ 300 |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restricted stock units | ||||
Shares | ||||
Outstanding, beginning of period (in shares) | 229,775 | 204,357 | 193,939 | 207,641 |
Granted (in shares) | 1,432 | 0 | 133,924 | 78,595 |
Vested (in shares) | (343) | 0 | (79,623) | (77,719) |
Forfeited (in shares) | (1,074) | 0 | (18,450) | (4,160) |
Outstanding, end of period (in shares) | 229,790 | 204,357 | 229,790 | 204,357 |
Total weighted-average grant-date fair value | $ 0.1 | $ 0 | $ 4.6 | $ 3.8 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 38.02 | $ 40.65 | $ 40.89 | $ 35.36 |
Granted (in dollars per share) | 45.09 | 0 | 34.49 | 47.99 |
Vested (in dollars per share) | 37.83 | 0 | 38.51 | 34.19 |
Forfeited (in dollars per share) | 38.52 | 0 | 39.92 | 35.81 |
Outstanding, end of period (in dollars per share) | $ 38.06 | $ 40.65 | $ 38.06 | $ 40.65 |
LTIP linked to TRS | ||||
Shares | ||||
Outstanding, beginning of period (in shares) | 91,159 | 90,616 | 89,222 | 96,402 |
Granted (in shares) | 281 | 0 | 46,024 | 24,630 |
Vested (in shares) | 0 | 0 | (32,355) | (29,409) |
Forfeited (in shares) | (466) | 0 | (11,917) | (1,007) |
Outstanding, end of period (in shares) | 90,974 | 90,616 | 90,974 | 90,616 |
Total weighted-average grant-date fair value | $ 0 | $ 0 | $ 1.9 | $ 1.2 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 42.87 | $ 42.08 | $ 42.10 | $ 39.62 |
Granted (in dollars per share) | 41.12 | 0 | 41.12 | 48.62 |
Vested (in dollars per share) | 0 | 0 | 38.20 | 39.51 |
Forfeited (in dollars per share) | 42.49 | 0 | 43.07 | 41.72 |
Outstanding, end of period (in dollars per share) | $ 42.86 | $ 42.08 | $ 42.86 | $ 42.08 |
LTIP awards linked to other performance conditions | ||||
Shares | ||||
Outstanding, beginning of period (in shares) | 316,005 | 297,523 | 220,715 | 403,768 |
Granted (in shares) | 1,125 | 0 | 184,102 | 98,522 |
Vested (in shares) | 0 | 0 | (43,155) | (135,804) |
Increase above target (cancelled) (in shares) | (22,354) | (21,807) | (21,077) | (86,739) |
Forfeited (in shares) | (1,865) | 0 | (47,674) | (4,031) |
Outstanding, end of period (in shares) | 292,911 | 275,716 | 292,911 | 275,716 |
Total weighted-average grant-date fair value | $ 0 | $ 0 | $ 6.3 | $ 4.7 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 38.38 | $ 40.37 | $ 41.03 | $ 35.15 |
Granted (in dollars per share) | 41.12 | 0 | 34.37 | 48.10 |
Vested (in dollars per share) | 0 | 0 | 34.12 | 33.48 |
Increase above target (in dollars per share) | 37.81 | 34.11 | 38.18 | 34.12 |
Forfeited (in dollars per share) | 36.77 | 0 | 38.74 | 39.67 |
Outstanding, end of period (in dollars per share) | $ 38.45 | $ 40.86 | $ 38.45 | $ 40.86 |
Share-based compensation - Fair
Share-based compensation - Fair value assumptions (Details) - LTIP linked to TRS - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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 | |
Forecast | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Risk-free interest rate | 0.19% | |
Expected life in years | 3 years | |
Expected volatility | 29.90% | |
Range of expected volatility for Peer Group, minimum rate | 25.60% | |
Range of expected volatility for Peer Group, maximum rate | 102.90% | |
Grant date fair value (in dollars per share) | $ 41.12 |
Income taxes (Details)
Income taxes (Details) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Contingency [Line Items] | ||
Effective income tax, percent | 20.00% | 17.00% |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Income Tax Contingency [Line Items] | ||
Effective income tax, percent | 19.00% | 19.00% |
Cash flows (Details)
Cash flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental disclosures of cash flow information | ||
Interest paid to non-affiliates, net of amounts capitalized | $ 61 | $ 64 |
Income taxes paid (including refundable credits) | 34 | 23 |
Supplemental disclosures of noncash activities | ||
Estimated fair value of noncash contributions in aid of construction (investing) | 5 | 9 |
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 30 | 32 |
Reduction of long-term debt from funds previously transferred for repayment (financing) | 0 | 82 |
Right-of-use assets obtained in exchange for operating lease obligations (investing) | 44 | 22 |
Common stock issued (gross) for director and executive/management compensation (financing) | 7 | 16 |
Obligations to fund low income housing investments (investing) | 9 | 10 |
Loans transferred from held for investment to held for sale (investing) | 62 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Supplemental disclosures of cash flow information | ||
Interest paid to non-affiliates, net of amounts capitalized | 43 | 39 |
Income taxes paid (including refundable credits) | 20 | 29 |
Supplemental disclosures of noncash activities | ||
Estimated fair value of noncash contributions in aid of construction (investing) | 5 | 9 |
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 27 | 28 |
Reduction of long-term debt from funds previously transferred for repayment (financing) | 0 | 82 |
Right-of-use assets obtained in exchange for operating lease obligations (investing) | $ 44 | $ 16 |
Fair value measurements - Summa
Fair value measurements - Summary of financial assets and liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial assets | ||
Available-for-sale investment securities | $ 2,580,830 | $ 1,970,417 |
Held-to-maturity investment securities | 484,654 | |
Financial liabilities | ||
Short-term borrowings—other than bank | 92,246 | 129,379 |
Other bank borrowings | 129,305 | 89,670 |
Carrying or notional amount | ||
Financial assets | ||
Available-for-sale investment securities | 2,580,830 | 1,970,417 |
Held-to-maturity investment securities | 491,871 | 226,947 |
Loans, net | 5,100,178 | 5,260,917 |
Mortgage-servicing rights | 10,272 | 10,020 |
Derivative assets | 53,789 | 120,980 |
Financial liabilities | ||
Deposit liabilities | 444,897 | 548,830 |
Short-term borrowings—other than bank | 92,246 | 129,379 |
Other bank borrowings | 129,305 | 89,670 |
Long-term debt, net | 2,244,795 | 2,119,129 |
Derivative liabilities | 27,250 | 137,500 |
Carrying or notional amount | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 1,676,223 | 1,561,302 |
Short-term borrowings | 0 | 49,979 |
Estimated fair value | ||
Financial assets | ||
Available-for-sale investment securities | 2,580,830 | 1,970,417 |
Held-to-maturity investment securities | 484,654 | 229,963 |
Loans, net | 5,221,758 | 5,439,330 |
Mortgage-servicing rights | 13,712 | 10,705 |
Derivative assets | 615 | 4,536 |
Financial liabilities | ||
Deposit liabilities | 445,401 | 552,800 |
Short-term borrowings—other than bank | 92,246 | 129,379 |
Other bank borrowings | 129,304 | 89,669 |
Long-term debt, net | 2,588,972 | 2,487,790 |
Derivative liabilities | 3,468 | 5,030 |
Estimated fair value | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 1,987,933 | 1,890,490 |
Short-term borrowings | 0 | 49,979 |
Estimated fair value | Quoted prices in active markets for identical assets (Level 1) | ||
Financial assets | ||
Available-for-sale investment securities | 0 | 0 |
Held-to-maturity investment securities | 0 | 0 |
Loans, net | 0 | 0 |
Mortgage-servicing rights | 0 | 0 |
Derivative assets | 121 | 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 | 12 | 500 |
Estimated fair value | Quoted prices in active markets for identical assets (Level 1) | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 0 | 0 |
Short-term borrowings | 0 | 0 |
Estimated fair value | Significant other observable inputs (Level 2) | ||
Financial assets | ||
Available-for-sale investment securities | 2,565,403 | 1,943,232 |
Held-to-maturity investment securities | 484,654 | 229,963 |
Loans, net | 54,537 | 28,354 |
Mortgage-servicing rights | 0 | 0 |
Derivative assets | 494 | 4,536 |
Financial liabilities | ||
Deposit liabilities | 445,401 | 552,800 |
Short-term borrowings—other than bank | 92,246 | 129,379 |
Other bank borrowings | 129,304 | 89,669 |
Long-term debt, net | 2,588,972 | 2,487,790 |
Derivative liabilities | 3,456 | 4,530 |
Estimated fair value | Significant other observable inputs (Level 2) | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 1,987,933 | 1,890,490 |
Short-term borrowings | 0 | 49,979 |
Estimated fair value | Significant unobservable inputs (Level 3) | ||
Financial assets | ||
Available-for-sale investment securities | 15,427 | 27,185 |
Held-to-maturity investment securities | 0 | 0 |
Loans, net | 5,167,221 | 5,410,976 |
Mortgage-servicing rights | 13,712 | 10,705 |
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 | Significant unobservable inputs (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 | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative assets | ||
Available-for-sale investment securities | $ 2,580,830 | $ 1,970,417 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | ||
Derivative liabilities | ||
Derivative liabilities | 12 | 500 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Derivative assets | 121 | 0 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Bank | Interest rate lock commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Bank | Forward commitments | ||
Derivative assets | ||
Derivative assets | 121 | 0 |
Derivative liabilities | ||
Derivative liabilities | 12 | 500 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Other | Interest rate swap | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (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 | Quoted prices in active markets for identical assets (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 | Quoted prices in active markets for identical assets (Level 1) | Corporate bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Mortgage revenue bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | ||
Derivative liabilities | ||
Derivative liabilities | 3,456 | 4,530 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 2,565,403 | 1,943,232 |
Derivative assets | 494 | 4,536 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Bank | Interest rate lock commitments | ||
Derivative assets | ||
Derivative assets | 308 | 4,536 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Bank | Forward commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Other | Interest rate swap | ||
Derivative assets | ||
Derivative assets | 186 | 0 |
Derivative liabilities | ||
Derivative liabilities | 3,456 | 4,530 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 2,441,683 | 1,849,559 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | U.S. Treasury and federal agency obligations | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 92,075 | 62,322 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Corporate bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 31,645 | 31,351 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Mortgage revenue bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | ||
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 15,427 | 27,185 |
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Bank | Interest rate lock commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Bank | Forward commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Other | Interest rate swap | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (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 | Significant unobservable inputs (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 | Significant unobservable inputs (Level 3) | Corporate bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Mortgage revenue bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | $ 15,427 | $ 27,185 |
Fair value measurements - Chang
Fair value measurements - Changes in level 3 assets and liabilities (Details) - Mortgage revenue bonds - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 15,427 | $ 28,827 | $ 27,185 | $ 28,597 |
Principal payments received | 0 | (1,642) | (11,758) | (1,642) |
Purchases | 0 | 0 | 0 | 230 |
Unrealized gain (loss) included in other comprehensive income | 0 | 0 | 0 | 0 |
Ending balance | $ 15,427 | $ 27,185 | $ 15,427 | $ 27,185 |
Fair value measurements - Narra
Fair value measurements - Narrative (Details) | Sep. 30, 2021 |
Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage revenue bonds, measurement input | 0.0206 |
Fair value measurements - Ass_2
Fair value measurements - Assets measured on a nonrecurring basis (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Estimated fair value | |||
Fair value measurements on a recurring basis | |||
Loans | $ 5,221,758,000 | $ 5,439,330,000 | |
Estimated fair value | Level 1 | |||
Fair value measurements on a recurring basis | |||
Loans | 0 | 0 | |
Estimated fair value | Level 2 | |||
Fair value measurements on a recurring basis | |||
Loans | 54,537,000 | 28,354,000 | |
Estimated fair value | Level 3 | |||
Fair value measurements on a recurring basis | |||
Loans | 5,167,221,000 | 5,410,976,000 | |
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 | |||
Loans | 0 | 0 | |
Mortgage servicing rights | 0 | ||
Fair value measurements on a nonrecurring basis | Level 2 | |||
Fair value measurements on a recurring basis | |||
Loans | 0 | 0 | |
Mortgage servicing rights | 0 | ||
Fair value measurements on a nonrecurring basis | Level 3 | |||
Fair value measurements on a recurring basis | |||
Loans | 125,000 | 387,000 | |
Mortgage servicing rights | 3,001,000 | ||
Fair value measurements on a nonrecurring basis | Estimated fair value | |||
Fair value measurements on a recurring basis | |||
Loans | $ 125,000 | 387,000 | |
Mortgage servicing rights | $ 3,001,000 |
Fair value measurements - Sum_2
Fair value measurements - Summary of Level 3 financial instruments (Details) - Level 3 $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Discount rate | ||
Fair value measurements | ||
Weighted average measurement input | 0.093 | |
Minimum | Prepayment speed | ||
Fair value measurements | ||
Weighted average measurement input | 0.15 | |
Maximum | Prepayment speed | ||
Fair value measurements | ||
Weighted average measurement input | 0.22 | |
Weighted Average | Prepayment speed | ||
Fair value measurements | ||
Weighted average measurement input | 0.22 | |
Discounted cash flow | ||
Fair value measurements | ||
Mortgage servicing rights | $ 3,001 | |
Residential loan | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 125 | |
Commercial loans | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 387 |