Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 11, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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 12(b) Security | Common Stock, Without Par Value | ||
Trading Symbol | HE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,621,670,518 | ||
Entity Common Stock, Shares Outstanding | 109,311,785 | ||
Documents Incorporated by Reference | Hawaiian Electric’s Exhibit 99.1, consisting of: Hawaiian Electric’s Directors, Executive Officers and Corporate Governance—Part III Hawaiian Electric’s Executive Compensation—Part III Hawaiian Electric’s Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters— Part III Hawaiian Electric’s Certain Relationships and Related Transactions, and Director Independence—Part III Hawaiian Electric’s Principal Accounting Fees and Services—Part III Selected sections of Proxy Statement of HEI for the 2022 Annual Meeting of Shareholders to be filed-Part III | ||
Entity Central Index Key | 0000354707 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Entity Information [Line Items] | |||
Current Fiscal Year End Date | --12-31 | ||
Entity Registrant Name | Hawaiian Electric Company, Inc. | ||
Entity File Number | 1-4955 | ||
Entity Tax Identification Number | 99-0040500 | ||
Entity Address, Address Line One | 1001 Bishop Street, Suite 2500 | ||
Entity Address, City or Town | Honolulu | ||
Entity Address, State or Province | HI | ||
Entity Address, Postal Zip Code | 96813 | ||
City Area Code | 808 | ||
Local Phone Number | 543-7771 | ||
Title of 12(g) Security | Cumulative Preferred Stock | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 17,753,533 | ||
Entity Central Index Key | 0000046207 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor [Line Items] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Honolulu, Hawaii |
Auditor Firm ID | 34 |
Hawaiian Electric Company, Inc. and Subsidiaries | |
Auditor [Line Items] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Honolulu, Hawaii |
Auditor Firm ID | 34 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||
Total revenues | $ 2,850,379 | $ 2,579,775 | $ 2,873,948 |
Expenses | |||
Total expenses | 2,464,313 | 2,268,282 | 2,525,927 |
Operating income (loss) | |||
Operating income | 386,066 | 311,493 | 348,021 |
Retirement defined benefits credit (expense)—other than service costs | 5,848 | (3,210) | (2,806) |
Interest expense, net – other than on deposit liabilities and other bank borrowings | (94,363) | (88,694) | (90,899) |
Allowance for borrowed funds used during construction | 3,250 | 2,992 | 4,453 |
Allowance for equity funds used during construction | 9,534 | 8,768 | 11,987 |
Gain on sale of investment securities, net | 528 | 9,275 | 653 |
Income before income taxes | 310,863 | 240,624 | 271,409 |
Income taxes | 62,807 | 40,910 | 51,637 |
Net income (loss) | 248,056 | 199,714 | 219,772 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 |
Net income for common stock | $ 246,166 | $ 197,824 | $ 217,882 |
Basic earnings per common share (in dollars per share) | $ 2.25 | $ 1.81 | $ 2 |
Diluted earnings per common share (in dollars per share) | $ 2.25 | $ 1.81 | $ 1.99 |
Weighted-average number of common shares outstanding (in shares) | 109,282 | 109,140 | 108,949 |
Net effect of potentially dilutive shares (in shares) | 298 | 216 | 458 |
Weighted-average shares assuming dilution (in shares) | 109,580 | 109,356 | 109,407 |
Electric utility | |||
Revenues | |||
Total revenues | $ 2,539,636 | $ 2,265,320 | $ 2,545,942 |
Expenses | |||
Total expenses | 2,260,078 | 1,996,770 | 2,291,564 |
Operating income (loss) | |||
Operating income | 279,558 | 268,550 | 254,378 |
Income before income taxes | 223,785 | 211,753 | 197,140 |
Income taxes | 44,148 | 40,418 | 38,305 |
Net income (loss) | 179,637 | 171,335 | 158,835 |
Preferred stock dividends of subsidiaries | 1,995 | 1,995 | 1,995 |
Net income for common stock | 177,642 | 169,340 | 156,840 |
Bank | |||
Revenues | |||
Total revenues | 306,398 | 313,511 | 327,917 |
Expenses | |||
Total expenses | 178,195 | 251,702 | 217,008 |
Operating income (loss) | |||
Operating income | 128,203 | 61,809 | 110,909 |
Income before income taxes | 130,559 | 69,271 | 112,034 |
Income taxes | 29,325 | 11,688 | 23,061 |
Net income (loss) | 101,234 | 57,583 | 88,973 |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 |
Net income for common stock | 101,234 | 57,583 | 88,973 |
Other | |||
Revenues | |||
Total revenues | 4,345 | 944 | 89 |
Expenses | |||
Total expenses | 26,040 | 19,810 | 17,355 |
Operating income (loss) | |||
Operating income | (21,695) | (18,866) | (17,266) |
Income before income taxes | (43,481) | (40,400) | (37,765) |
Income taxes | (10,666) | (11,196) | (9,729) |
Net income (loss) | (32,815) | (29,204) | (28,036) |
Preferred stock dividends of subsidiaries | (105) | (105) | (105) |
Net income for common stock | $ (32,710) | $ (29,099) | $ (27,931) |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Bank | |
Gain on sale of properties | $ 10.8 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income for common stock | $ 246,166 | $ 197,824 | $ 217,882 |
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 $(18,903), $7,008 and $10,024 for 2021, 2020 and 2019, respectively | (51,636) | 19,143 | 27,382 |
Reclassification adjustment for net realized gains included in net income, net of taxes of $(142), $(599) and $(175) for 2021, 2020 and 2019, respectively | (387) | (1,638) | (478) |
Derivatives qualified as cash flow hedges: | |||
Unrealized interest rate hedging losses, net of taxes of $(108), $(607) and $(409) for 2021, 2020 and 2019, respectively | (312) | (1,750) | (1,177) |
Reclassification adjustment to net income, net of taxes of $13, nil and nil for 2021, 2020 and 2019, respectively | 37 | ||
Retirement benefit plans: | |||
Net gains (losses) arising during the period, net of taxes of $53,068, $(20,907) and $3,892 for 2021, 2020 and 2019, respectively | 153,121 | (60,529) | 10,914 |
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes of $6,665, $8,247 and $3,512 for 2021, 2020 and 2019, respectively | 19,253 | 23,689 | 10,107 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $(59,429), $13,825 and $(5,610) for 2021, 2020 and 2019, respectively | (171,345) | 39,860 | (16,177) |
Other comprehensive loss, net of tax benefits | (51,269) | 18,775 | 30,571 |
Comprehensive income | $ 194,897 | $ 216,599 | $ 248,453 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net unrealized gains (losses) on available-for sale investment securities: | |||
Net unrealized gains (losses) on securities arising during the period, tax (benefits) | $ (18,903) | $ 7,008 | $ 10,024 |
Reclassification adjustment for net realized gains included in net income, tax expenses | (142) | (599) | (175) |
Derivatives qualified as cash flow hedges: | |||
Foreign currency hedge net unrealized loss, taxes (benefits) | (108) | (607) | (409) |
Reclassification adjustment to net income, taxes | 13 | 0 | 0 |
Retirement benefit plans: | |||
Net gains (losses) arising during the period, taxes (benefits) | 53,068 | (20,907) | 3,892 |
Amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | 6,665 | 8,247 | 3,512 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, (taxes) benefits | $ (59,429) | $ 13,825 | $ (5,610) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 305,551 | $ 341,421 |
Restricted cash | 5,911 | 17,558 |
Accounts receivable and unbilled revenues, net | 344,213 | 281,216 |
Available-for-sale investment securities, at fair value | 2,574,618 | 1,970,417 |
Held-to-maturity investment securities, at amortized cost | 522,270 | 226,947 |
Stock in Federal Home Loan Bank, at cost | 10,000 | 8,680 |
Loans held for investment, net | 5,139,984 | 5,232,642 |
Loans held for sale, at lower of cost or fair value | 10,404 | 28,275 |
Property, plant and equipment, net | ||
Land | 102,910 | 103,428 |
Plant and equipment | 8,085,793 | 7,851,185 |
Construction in progress | 231,495 | 214,266 |
Property, plant and equipment, gross | 8,420,198 | 8,168,879 |
Less – accumulated depreciation | (3,028,130) | (2,903,144) |
Total property, plant and equipment, net | 5,392,068 | 5,265,735 |
Operating lease right-of-use-assets | 122,416 | 153,069 |
Regulatory assets | 565,543 | 766,708 |
Other | 747,469 | 629,149 |
Goodwill | 82,190 | 82,190 |
Total assets | 15,822,637 | 15,004,007 |
Liabilities | ||
Accounts payable | 205,544 | 182,347 |
Interest and dividends payable | 19,889 | 23,547 |
Deposit liabilities | 8,172,212 | 7,386,957 |
Short-term borrowings—other than bank | 53,998 | 129,379 |
Other bank borrowings | 88,305 | 89,670 |
Long-term debt, net—other than bank | 2,321,937 | 2,119,129 |
Deferred income taxes | 384,760 | 395,089 |
Operating lease liabilities | 136,760 | 160,432 |
Regulatory liabilities | 996,768 | 959,786 |
Defined benefit pension and other postretirement benefit plans liability | 348,072 | 567,438 |
Other | 669,215 | 618,438 |
Total liabilities | 13,397,460 | 12,632,212 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies (Notes 3 and 4) | ||
Shareholders’ equity | ||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 0 | 0 |
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 109,311,785 shares and 109,181,124 shares at December 31, 2021 and 2020, respectively | 1,685,496 | 1,678,368 |
Retained earnings | 757,921 | 660,398 |
Accumulated other comprehensive income (loss), net of taxes | ||
Net unrealized gains (losses) on securities | (32,037) | 19,986 |
Unrealized losses on derivatives | (3,638) | (3,363) |
Retirement benefit plans | (16,858) | (17,887) |
Accumulated other comprehensive income (loss), net of taxes | (52,533) | (1,264) |
Total shareholders’ equity | 2,390,884 | 2,337,502 |
Total capitalization and liabilities | $ 15,822,637 | $ 15,004,007 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Shareholders’ equity | ||
Preferred stock, authorized shares (in shares) | 10,000,000 | 10,000,000 |
Common stock, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued shares (in shares) | 109,311,785 | 109,181,124 |
Common stock, outstanding shares (in shares) | 109,311,785 | 109,181,124 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Impact of adoption of ASU No. 2016-13 | Balance, January 1, 2020 after adoption of ASU No. 2016-13 | Common stock | Common stockBalance, January 1, 2020 after adoption of ASU No. 2016-13 | Retained earnings | Retained earningsImpact of adoption of ASU No. 2016-13 | Retained earningsBalance, January 1, 2020 after adoption of ASU No. 2016-13 | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss)Balance, January 1, 2020 after adoption of ASU No. 2016-13 |
Beginning balance (in shares) at Dec. 31, 2018 | 108,879,000 | |||||||||
Beginning balance at Dec. 31, 2018 | $ 2,162,280 | $ 1,669,267 | $ 543,623 | $ (50,610) | ||||||
Increase (decrease) in stockholders' equity | ||||||||||
Net income for common stock | 217,882 | 217,882 | ||||||||
Other comprehensive income (loss), net of taxes (benefits) | 30,571 | 30,571 | ||||||||
Issuance of common stock: | ||||||||||
Share-based plans (in shares) | 94,000 | |||||||||
Share-based plans | 3,092 | $ 3,092 | ||||||||
Share-based expenses and other, net | 5,898 | $ 5,898 | ||||||||
Common stock dividends | (139,463) | (139,463) | ||||||||
Ending balance (in shares) at Dec. 31, 2019 | 108,973,000 | 108,973,000 | ||||||||
Ending balance at Dec. 31, 2019 | $ 2,280,260 | $ (15,372) | $ 2,264,888 | $ 1,678,257 | $ 1,678,257 | 622,042 | $ (15,372) | $ 606,670 | (20,039) | $ (20,039) |
Issuance of common stock: | ||||||||||
Accounting standards update, extensible Llist | Accounting Standards Update 2016-13 [Member] | |||||||||
Net income for common stock | $ 197,824 | 197,824 | ||||||||
Other comprehensive income (loss), net of taxes (benefits) | 18,775 | 18,775 | ||||||||
Share-based plans (in shares) | 208,000 | |||||||||
Share-based plans | 3,973 | $ 3,973 | ||||||||
Share-based expenses and other, net | (3,862) | $ (3,862) | ||||||||
Common stock dividends | $ (144,096) | (144,096) | ||||||||
Ending balance (in shares) at Dec. 31, 2020 | 109,181,124 | 109,181,000 | ||||||||
Ending balance at Dec. 31, 2020 | $ 2,337,502 | $ 1,678,368 | 660,398 | (1,264) | ||||||
Increase (decrease) in stockholders' equity | ||||||||||
Net income for common stock | 246,166 | 246,166 | ||||||||
Other comprehensive income (loss), net of taxes (benefits) | (51,269) | (51,269) | ||||||||
Issuance of common stock: | ||||||||||
Share-based plans (in shares) | 131,000 | |||||||||
Share-based plans | 5,027 | $ 5,027 | ||||||||
Share-based expenses and other, net | 2,101 | $ 2,101 | ||||||||
Common stock dividends | $ (148,643) | (148,643) | ||||||||
Ending balance (in shares) at Dec. 31, 2021 | 109,311,785 | 109,312,000 | ||||||||
Ending balance at Dec. 31, 2021 | $ 2,390,884 | $ 1,685,496 | $ 757,921 | $ (52,533) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock dividends (in dollars per share) | $ 1.36 | $ 1.32 | $ 1.28 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income | $ 248,056 | $ 199,714 | $ 219,772 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 246,158 | 238,114 | 229,858 |
Other amortization | 32,544 | 52,664 | 48,255 |
Provision for credit losses | (25,825) | 50,811 | 23,480 |
Loans originated, held for sale | (340,986) | (564,525) | (285,042) |
Proceeds from sale of loans, held for sale | 364,848 | 567,652 | 277,119 |
Gain on sale of real estate, held for sale | 0 | 0 | (10,762) |
Gain on sale of investment securities, net | (528) | (9,275) | (653) |
Gain on sale of loans | (9,305) | (23,734) | (4,943) |
Deferred income taxes | (5,398) | (1,706) | (15,085) |
Share-based compensation expense | 9,135 | 5,810 | 9,986 |
Allowance for equity funds used during construction | (9,534) | (8,768) | (11,987) |
Other | (7,060) | 1,366 | 18,568 |
Changes in assets and liabilities | |||
Decrease (increase) in accounts receivable and unbilled revenues, net | (73,811) | 2,533 | 23,933 |
Decrease (increase) in fuel oil stock | (45,819) | 34,202 | (11,493) |
Decrease (increase) in regulatory assets | (13,874) | 1,007 | 71,262 |
Increase (decrease) in regulatory liabilities | 15,358 | (16,562) | 1,953 |
Increase (decrease) in accounts, interest and dividends payable | 9,925 | (20,068) | (3,054) |
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | 41,331 | (35,610) | (27,538) |
Decrease in defined benefit pension and other postretirement benefit plans liability | (6,660) | (2,029) | (4,482) |
Change in other assets and liabilities | (52,882) | (42,189) | (36,677) |
Net cash provided by operating activities | 375,673 | 429,407 | 512,470 |
Cash flows from investing activities | |||
Available-for-sale investment securities purchased | (1,464,644) | (1,361,594) | (108,088) |
Principal repayments on available-for-sale investment securities | 583,238 | 478,351 | 272,949 |
Proceeds from sale of available-for-sale investment securities | 197,354 | 169,157 | 19,810 |
Purchases of held-to-maturity investment securities | (349,579) | (146,738) | (13,057) |
Proceeds from repayments or maturities of held-to-maturity investment securities | 53,654 | 59,894 | 15,505 |
Purchase of stock from Federal Home Loan Bank | (33,022) | (27,350) | (95,636) |
Redemption of stock from Federal Home Loan Bank | 31,702 | 27,104 | 97,160 |
Net decrease (increase) in loans held for investment | 72,489 | (229,311) | (300,210) |
Proceeds from sale of residential loans | 59,844 | 0 | 0 |
Proceeds from sale of real estate held for sale | 0 | 0 | 21,060 |
Capital expenditures | (314,524) | (383,895) | (457,520) |
Proceeds from sale of low income housing investments | 0 | 6,725 | 1 |
Contributions to low income housing investments | (16,131) | (9,403) | (6,974) |
Other, net | 27 | 3,412 | 13,291 |
Net cash used in investing activities | (1,179,592) | (1,413,648) | (541,709) |
Cash flows from financing activities | |||
Net increase in deposit liabilities | 785,255 | 1,115,055 | 113,050 |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (10,493) | (71,219) | 86,718 |
Proceeds from issuance of short-term debt | 0 | 165,000 | 75,000 |
Repayment of short-term debt | (65,000) | (150,000) | (50,000) |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | (1,365) | (25,440) | 5,070 |
Proceeds from issuance of other bank borrowings | 0 | 30,000 | 0 |
Repayment of other bank borrowings | 0 | (30,000) | 0 |
Proceeds from issuance of long-term debt | 285,886 | 415,997 | 289,349 |
Repayment of long-term debt and funds transferred for repayment of long-term debt | (82,262) | (178,969) | (287,285) |
Withheld shares for employee taxes on vested share-based compensation | (2,006) | (5,700) | (997) |
Common stock dividends | (148,643) | (144,096) | (139,463) |
Preferred stock dividends of subsidiaries | (1,890) | (1,890) | (1,890) |
Other | (3,080) | (3,203) | (1,836) |
Net cash used in financing activities | 756,402 | 1,115,535 | 87,716 |
Net increase (decrease) in cash and equivalents | (47,517) | 131,294 | 58,477 |
Cash, cash equivalents and restricted cash, January 1 | 358,979 | 227,685 | 169,208 |
Cash, cash equivalents and restricted cash, December 31 | 311,462 | 358,979 | 227,685 |
Less: Restricted cash | (5,911) | (17,558) | (30,872) |
Cash and cash equivalents, December 31 | $ 305,551 | $ 341,421 | $ 196,813 |
Consolidated Statements of In_3
Consolidated Statements of Income - HECO - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | $ 2,850,379 | $ 2,579,775 | $ 2,873,948 |
Expenses | |||
Total expenses | 2,464,313 | 2,268,282 | 2,525,927 |
Operating income | 386,066 | 311,493 | 348,021 |
Allowance for equity funds used during construction | 9,534 | 8,768 | 11,987 |
Retirement defined benefits credit (expense)—other than service costs | 5,848 | (3,210) | (2,806) |
Allowance for borrowed funds used during construction | 3,250 | 2,992 | 4,453 |
Income before income taxes | 310,863 | 240,624 | 271,409 |
Income taxes | 62,807 | 40,910 | 51,637 |
Net income (loss) | 248,056 | 199,714 | 219,772 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 |
Net income for common stock | 246,166 | 197,824 | 217,882 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Revenues | 2,539,636 | 2,265,320 | 2,545,942 |
Expenses | |||
Fuel oil | 644,349 | 515,274 | 720,709 |
Purchased power | 670,494 | 568,749 | 633,256 |
Other operation and maintenance | 475,412 | 474,192 | 481,737 |
Depreciation | 229,469 | 222,733 | 215,731 |
Taxes, other than income taxes | 240,354 | 215,822 | 240,131 |
Total expenses | 2,260,078 | 1,996,770 | 2,291,564 |
Operating income | 279,558 | 268,550 | 254,378 |
Allowance for equity funds used during construction | 9,534 | 8,768 | 11,987 |
Retirement defined benefits credit (expense)—other than service costs | 3,890 | (763) | (2,836) |
Interest expense and other charges, net | (72,447) | (67,794) | (70,842) |
Allowance for borrowed funds used during construction | 3,250 | 2,992 | 4,453 |
Income before income taxes | 223,785 | 211,753 | 197,140 |
Income taxes | 44,148 | 40,418 | 38,305 |
Net income (loss) | 179,637 | 171,335 | 158,835 |
Preferred stock dividends of subsidiaries | 915 | 915 | 915 |
Net income attributable to Hawaiian Electric | 178,722 | 170,420 | 157,920 |
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 |
Net income for common stock | $ 177,642 | $ 169,340 | $ 156,840 |
Consolidated Statements of Co_3
Consolidated Statements of Comprehensive Income - HECO - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income for common stock | $ 246,166 | $ 197,824 | $ 217,882 |
Retirement benefit plans: | |||
Net gains (losses) arising during the period, net of taxes of $52,554, $(21,868) and $1,821 for 2021, 2020 and 2019, respectively | 153,121 | (60,529) | 10,914 |
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes of $6,750, $7,474 and $3,312 for 2021, 2020 and 2019, respectively | 19,253 | 23,689 | 10,107 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $(59,429), $13,825, and $(5,610) for 2021, 2020 and 2019, respectively | (171,345) | 39,860 | (16,177) |
Other comprehensive loss, net of tax benefits | (51,269) | 18,775 | 30,571 |
Comprehensive income | 194,897 | 216,599 | 248,453 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Net income for common stock | 177,642 | 169,340 | 156,840 |
Retirement benefit plans: | |||
Net gains (losses) arising during the period, net of taxes of $52,554, $(21,868) and $1,821 for 2021, 2020 and 2019, respectively | 151,523 | (63,050) | 5,249 |
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes of $6,750, $7,474 and $3,312 for 2021, 2020 and 2019, respectively | 19,461 | 21,550 | 9,550 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $(59,429), $13,825, and $(5,610) for 2021, 2020 and 2019, respectively | (171,345) | 39,860 | (16,177) |
Other comprehensive loss, net of tax benefits | (361) | (1,640) | (1,378) |
Comprehensive income | $ 177,281 | $ 167,700 | $ 155,462 |
Consolidated Statements of Co_4
Consolidated Statements of Comprehensive Income (Parenthetical) - HECO - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement benefit plans: | |||
Net gains (losses) arising during the period, taxes (benefits) | $ 53,068 | $ (20,907) | $ 3,892 |
Amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | 6,665 | 8,247 | 3,512 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, (taxes) benefits | 59,429 | (13,825) | 5,610 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Retirement benefit plans: | |||
Net gains (losses) arising during the period, taxes (benefits) | 52,554 | (21,868) | 1,821 |
Amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | 6,750 | 7,474 | 3,312 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, (taxes) benefits | $ (59,429) | $ 13,825 | $ (5,610) |
Consolidated Balance Sheets - H
Consolidated Balance Sheets - HECO - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Utility property, plant and equipment | ||
Total property, plant and equipment, net | $ 5,392,068 | $ 5,265,735 |
Current assets | ||
Cash and cash equivalents | 305,551 | 341,421 |
Restricted cash | 5,900 | 17,600 |
Other long-term assets | ||
Operating lease right-of-use-assets | 122,416 | 153,069 |
Total assets | 15,822,637 | 15,004,007 |
Capitalization | ||
Common stock equity | 2,390,884 | 2,337,502 |
Commitments and contingencies | ||
Current liabilities | ||
Interest and dividends payable | 19,889 | 23,547 |
Deferred credits and other liabilities | ||
Deferred income taxes | 384,760 | 395,089 |
Total capitalization and liabilities | 15,822,637 | 15,004,007 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Utility property, plant and equipment | ||
Land | 51,937 | 51,611 |
Plant and equipment | 7,735,983 | 7,509,343 |
Less accumulated depreciation | (2,940,517) | (2,819,079) |
Construction in progress | 204,569 | 188,342 |
Utility property, plant and equipment, net | 5,051,972 | 4,930,217 |
Nonutility property, plant and equipment, less accumulated depreciation of $59 and $115 as of December 31, 2021 and 2020, respectively | 6,949 | 6,953 |
Total property, plant and equipment, net | 5,058,921 | 4,937,170 |
Current assets | ||
Cash and cash equivalents | 52,169 | 47,360 |
Restricted cash | 3,089 | 15,966 |
Customer accounts receivable, net | 186,859 | 147,832 |
Accrued unbilled revenues, net | 129,155 | 101,036 |
Other accounts receivable, net | 7,267 | 7,673 |
Fuel oil stock, at average cost | 104,078 | 58,238 |
Materials and supplies, at average cost | 71,877 | 67,344 |
Prepayments and other | 46,031 | 44,083 |
Regulatory assets | 66,664 | 30,435 |
Total current assets | 667,189 | 519,967 |
Other long-term assets | ||
Operating lease right-of-use-assets | 101,470 | 127,654 |
Regulatory assets | 498,879 | 736,273 |
Other | 165,166 | 136,309 |
Total other long-term assets | 765,515 | 1,000,236 |
Total assets | 6,491,625 | 6,457,373 |
Capitalization | ||
Common stock equity | 2,261,899 | 2,141,918 |
Cumulative preferred stock – not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies | ||
Long-term debt, net | 1,624,427 | 1,561,302 |
Total capitalization | 3,920,619 | 3,737,513 |
Current liabilities | ||
Current portion of operating lease liabilities | 49,368 | 64,730 |
Current portion of long-term debt, net | 51,975 | 0 |
Short-term borrowings from non-affiliate | 0 | 49,979 |
Accounts payable | 160,007 | 133,849 |
Interest and dividends payable | 17,325 | 20,350 |
Taxes accrued, including revenue taxes | 208,280 | 192,524 |
Regulatory liabilities | 29,760 | 37,301 |
Other | 71,569 | 74,262 |
Total current liabilities | 588,284 | 572,995 |
Deferred credits and other liabilities | ||
Operating lease liabilities | 65,780 | 69,494 |
Deferred income taxes | 408,634 | 397,798 |
Regulatory liabilities | 967,008 | 922,485 |
Unamortized tax credits | 103,945 | 111,915 |
Defined benefit pension and other postretirement benefit plans liability | 321,780 | 530,532 |
Other | 115,575 | 114,641 |
Total deferred credits and other liabilities | 1,982,722 | 2,146,865 |
Total capitalization and liabilities | $ 6,491,625 | $ 6,457,373 |
Consolidated Balance Sheets -_2
Consolidated Balance Sheets - HECO (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Utility property, plant and equipment | ||
Accumulated depreciation on other property, plant and equipment | $ 59 | $ 115 |
Consolidated Statements of Capi
Consolidated Statements of Capitalization - HECO - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Common stock equity | ||
Retained earnings | $ 757,921 | $ 660,398 |
Accumulated other comprehensive loss, net of tax benefits-retirement benefit plans | (16,858) | (17,887) |
Total shareholders’ equity | 2,390,884 | 2,337,502 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Common stock equity | ||
Common stock of $6 2/3 par value, Authorized: 50,000,000 shares. Outstanding: shares and 17,048,783 shares at December 31, 2021 and 2020, respectively | 118,376 | 115,515 |
Premium on capital stock | 798,526 | 746,987 |
Retained earnings | 1,348,277 | 1,282,335 |
Accumulated other comprehensive loss, net of tax benefits-retirement benefit plans | (3,280) | (2,919) |
Total shareholders’ equity | $ 2,261,899 | $ 2,141,918 |
Shares outstanding (in shares) | 1,234,657 | 1,234,657 |
Cumulative preferred stock – not subject to mandatory redemption | $ 34,293 | $ 34,293 |
Long-term debt | 1,684,000 | 1,569,000 |
Less unamortized debt issuance costs | 7,598 | 7,698 |
Less current portion long-term debt, net of unamortized debt issuance costs | 51,975 | 0 |
Long-term debt, net | 1,624,427 | 1,561,302 |
Total capitalization | 3,920,619 | 3,737,513 |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | ||
Common stock equity | ||
Long-term debt | 542,000 | 542,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 3.50%, Series 2019, due 2049 | ||
Common stock equity | ||
Long-term debt | 80,000 | 80,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 3.20%, Refunding series 2019, due 2039 | ||
Common stock equity | ||
Long-term debt | 150,000 | 150,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 3.10%, Refunding series 2017A, due 2026 | ||
Common stock equity | ||
Long-term debt | 125,000 | 125,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 4.00%, Refunding series 2017B, due 2037 | ||
Common stock equity | ||
Long-term debt | 140,000 | 140,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 3.25%, Refunding series 2015, due 2025 | ||
Common stock equity | ||
Long-term debt | 47,000 | 47,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | ||
Common stock equity | ||
Long-term debt | 1,142,000 | 1,027,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 3.96%, Series 2020A, 2020B and 2020C, due 2050 | ||
Common stock equity | ||
Long-term debt | 50,000 | 50,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 3.31%, Series 2020A and 2020B, due 2030 | ||
Common stock equity | ||
Long-term debt | 110,000 | 110,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.21%, Series 2019A, due 2034 | ||
Common stock equity | ||
Long-term debt | 50,000 | 50,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.38%, Series 2018A, due 2028 | ||
Common stock equity | ||
Long-term debt | 67,500 | 67,500 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.53%, Series 2018B, due 2033 | ||
Common stock equity | ||
Long-term debt | 17,500 | 17,500 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.72%, Series 2018C, due 2048 | ||
Common stock equity | ||
Long-term debt | 15,000 | 15,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.31%, Series 2017A, due 2047 | ||
Common stock equity | ||
Long-term debt | 50,000 | 50,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.54%, Series 2016A, due 2046 | ||
Common stock equity | ||
Long-term debt | 40,000 | 40,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 5.23%, Series 2015A, due 2045 | ||
Common stock equity | ||
Long-term debt | 80,000 | 80,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.45%, Series 2013A and 2013B, due 2022 | ||
Common stock equity | ||
Long-term debt | 52,000 | 52,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.84%, Series 2013A, 2013B and 2013C, due 2027 | ||
Common stock equity | ||
Long-term debt | 100,000 | 100,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 5.65%, Series 2013B and 2013C, due 2043 | ||
Common stock equity | ||
Long-term debt | 70,000 | 70,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.55%, Series 2012B and 2012C, due 2023 | ||
Common stock equity | ||
Long-term debt | 100,000 | 100,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.72%, Series 2012D, due 2029 | ||
Common stock equity | ||
Long-term debt | 35,000 | 35,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 5.39%, Series 2012E, due 2042 | ||
Common stock equity | ||
Long-term debt | 150,000 | 150,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.53%, Series 2012F, due 2032 | ||
Common stock equity | ||
Long-term debt | $ 40,000 | $ 40,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Preferred Stock $20 Par Value | ||
Common stock equity | ||
Par Value (in dollars per share) | $ 20 | $ 20 |
Hawaiian Electric Company, Inc. and Subsidiaries | Preferred Stock $100 Par Value | ||
Common stock equity | ||
Par Value (in dollars per share) | 100 | 100 |
Hawaiian Electric | Series C, 4.25% Preferred Stock | ||
Common stock equity | ||
Par Value (in dollars per share) | $ 20 | $ 20 |
Shares outstanding (in shares) | 150,000 | 150,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 3,000 | $ 3,000 |
Hawaiian Electric | Series D, 5.00% Preferred Stock | ||
Common stock equity | ||
Par Value (in dollars per share) | $ 20 | $ 20 |
Shares outstanding (in shares) | 50,000 | 50,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 1,000 | $ 1,000 |
Hawaiian Electric | Series E, 5.00% Preferred Stock | ||
Common stock equity | ||
Par Value (in dollars per share) | $ 20 | $ 20 |
Shares outstanding (in shares) | 150,000 | 150,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 3,000 | $ 3,000 |
Hawaiian Electric | Series H, 5.25% Preferred Stock | ||
Common stock equity | ||
Par Value (in dollars per share) | $ 20 | $ 20 |
Shares outstanding (in shares) | 250,000 | 250,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 5,000 | $ 5,000 |
Hawaiian Electric | Series I, 5.00% Preferred Stock | ||
Common stock equity | ||
Par Value (in dollars per share) | $ 20 | $ 20 |
Shares outstanding (in shares) | 89,657 | 89,657 |
Cumulative preferred stock – not subject to mandatory redemption | $ 1,793 | $ 1,793 |
Hawaiian Electric | Series J, 4.75% Preferred Stock | ||
Common stock equity | ||
Par Value (in dollars per share) | $ 20 | $ 20 |
Shares outstanding (in shares) | 250,000 | 250,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 5,000 | $ 5,000 |
Hawaiian Electric | Series K, 4.65% Preferred Stock | ||
Common stock equity | ||
Par Value (in dollars per share) | $ 20 | $ 20 |
Shares outstanding (in shares) | 175,000 | 175,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 3,500 | $ 3,500 |
Hawaii Electric Light | Series G, 7.625% Preferred Stock | ||
Common stock equity | ||
Par Value (in dollars per share) | $ 100 | $ 100 |
Shares outstanding (in shares) | 70,000 | 70,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 7,000 | $ 7,000 |
Maui Electric | Series H, 7.625% Preferred Stock | ||
Common stock equity | ||
Par Value (in dollars per share) | $ 100 | $ 100 |
Shares outstanding (in shares) | 50,000 | 50,000 |
Cumulative preferred stock – not subject to mandatory redemption | $ 5,000 | $ 5,000 |
Consolidated Statements of Ca_2
Consolidated Statements of Capitalization - HECO (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Common stock, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common stock, outstanding shares (in shares) | 109,311,785 | 109,181,124 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Common stock, par value (in dollars per share) | $ 6.667 | $ 6.667 |
Common stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Common stock, outstanding shares (in shares) | 17,753,533 | 17,324,376 |
Long-term debt | $ 1,684,000 | $ 1,569,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | ||
Long-term debt | $ 542,000 | 542,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 3.50%, Series 2019, due 2049 | ||
Debt instrument, stated interest rate | 3.50% | |
Long-term debt | $ 80,000 | 80,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 3.20%, Refunding series 2019, due 2039 | ||
Debt instrument, stated interest rate | 3.20% | |
Long-term debt | $ 150,000 | 150,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 3.10%, Refunding series 2017A, due 2026 | ||
Debt instrument, stated interest rate | 3.10% | |
Long-term debt | $ 125,000 | 125,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 4.00%, Refunding series 2017B, due 2037 | ||
Debt instrument, stated interest rate | 4.00% | |
Long-term debt | $ 140,000 | 140,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Special Purpose Revenue Bonds | 3.25%, Refunding series 2015, due 2025 | ||
Debt instrument, stated interest rate | 3.25% | |
Long-term debt | $ 47,000 | 47,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | ||
Long-term debt | $ 1,142,000 | 1,027,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 3.96%, Series 2020A, 2020B and 2020C, due 2050 | ||
Debt instrument, stated interest rate | 3.96% | |
Long-term debt | $ 50,000 | 50,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 3.51%, Series 2020C and 2020E, due 2050 | ||
Debt instrument, stated interest rate | 3.51% | |
Long-term debt | $ 70,000 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 3.28%, Series 2020B and 2020D, due 2040 | ||
Debt instrument, stated interest rate | 3.28% | |
Long-term debt | $ 45,000 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 3.31%, Series 2020A and 2020B, due 2030 | ||
Debt instrument, stated interest rate | 3.31% | |
Long-term debt | $ 110,000 | 110,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.21%, Series 2019A, due 2034 | ||
Debt instrument, stated interest rate | 4.21% | |
Long-term debt | $ 50,000 | 50,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.38%, Series 2018A, due 2028 | ||
Debt instrument, stated interest rate | 4.38% | |
Long-term debt | $ 67,500 | 67,500 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.53%, Series 2018B, due 2033 | ||
Debt instrument, stated interest rate | 4.53% | |
Long-term debt | $ 17,500 | 17,500 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.72%, Series 2018C, due 2048 | ||
Debt instrument, stated interest rate | 4.72% | |
Long-term debt | $ 15,000 | 15,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.31%, Series 2017A, due 2047 | ||
Debt instrument, stated interest rate | 4.31% | |
Long-term debt | $ 50,000 | 50,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.54%, Series 2016A, due 2046 | ||
Debt instrument, stated interest rate | 4.54% | |
Long-term debt | $ 40,000 | 40,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 5.23%, Series 2015A, due 2045 | ||
Debt instrument, stated interest rate | 5.23% | |
Long-term debt | $ 80,000 | 80,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.45%, Series 2013A and 2013B, due 2022 | ||
Debt instrument, stated interest rate | 4.45% | |
Long-term debt | $ 52,000 | 52,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.84%, Series 2013A, 2013B and 2013C, due 2027 | ||
Debt instrument, stated interest rate | 4.84% | |
Long-term debt | $ 100,000 | 100,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 5.65%, Series 2013B and 2013C, due 2043 | ||
Debt instrument, stated interest rate | 5.65% | |
Long-term debt | $ 70,000 | 70,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.55%, Series 2012B and 2012C, due 2023 | ||
Debt instrument, stated interest rate | 4.55% | |
Long-term debt | $ 100,000 | 100,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.72%, Series 2012D, due 2029 | ||
Debt instrument, stated interest rate | 4.72% | |
Long-term debt | $ 35,000 | 35,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 5.39%, Series 2012E, due 2042 | ||
Debt instrument, stated interest rate | 5.39% | |
Long-term debt | $ 150,000 | 150,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | 4.53%, Series 2012F, due 2032 | ||
Debt instrument, stated interest rate | 4.53% | |
Long-term debt | $ 40,000 | $ 40,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Preferred Stock $20 Par Value | ||
Preferred stock, authorized shares (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ 20 | $ 20 |
Hawaiian Electric Company, Inc. and Subsidiaries | Preferred Stock $100 Par Value | ||
Preferred stock, authorized shares (in shares) | 7,000,000 | 7,000,000 |
Preferred stock, par value (in dollars per share) | $ 100 | $ 100 |
Hawaiian Electric | Series C, 4.25% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | $ 20 |
Preferred stock, stated dividend rate | 4.25% | 4.25% |
Hawaiian Electric | Series D, 5.00% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | $ 20 |
Preferred stock, stated dividend rate | 5.00% | 5.00% |
Hawaiian Electric | Series E, 5.00% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | $ 20 |
Preferred stock, stated dividend rate | 5.00% | 5.00% |
Hawaiian Electric | Series H, 5.25% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | $ 20 |
Preferred stock, stated dividend rate | 5.25% | 5.25% |
Hawaiian Electric | Series I, 5.00% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | $ 20 |
Preferred stock, stated dividend rate | 5.00% | 5.00% |
Hawaiian Electric | Series J, 4.75% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | $ 20 |
Preferred stock, stated dividend rate | 4.75% | 4.75% |
Hawaiian Electric | Series K, 4.65% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | $ 20 |
Preferred stock, stated dividend rate | 4.65% | 4.65% |
Hawaii Electric Light | Series G, 7.625% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 100 | $ 100 |
Preferred stock, stated dividend rate | 7.625% | 7.625% |
Maui Electric | Series H, 7.625% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 100 | $ 100 |
Preferred stock, stated dividend rate | 7.625% | 7.625% |
Consolidated Statements of Ch_3
Consolidated Statements of Changes in Common Stock Equity - HECO - USD ($) $ in Thousands | Total | Retained earnings | Accumulated other comprehensive income (loss) | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and SubsidiariesCommon stock | Hawaiian Electric Company, Inc. and SubsidiariesPremium on capital stock | Hawaiian Electric Company, Inc. and SubsidiariesRetained earnings | Hawaiian Electric Company, Inc. and SubsidiariesAccumulated other comprehensive income (loss) |
Beginning balance (in shares) at Dec. 31, 2018 | 16,751,000 | |||||||
Beginning balance at Dec. 31, 2018 | $ 2,162,280 | $ 543,623 | $ (50,610) | $ 1,957,641 | $ 111,696 | $ 681,305 | $ 1,164,541 | $ 99 |
Increase (decrease) in stockholders' equity | ||||||||
Net income for common stock | 217,882 | 217,882 | 156,840 | 156,840 | ||||
Other comprehensive income (loss), net of taxes (benefits) | 30,571 | 30,571 | (1,378) | (1,378) | ||||
Issuance of common stock, net of expenses (in shares) | 297,000 | |||||||
Issuance of common stock, net of expenses | 3,092 | 35,501 | $ 1,982 | 33,519 | ||||
Common stock dividends | (139,463) | (139,463) | (101,252) | (101,252) | ||||
Ending balance (in shares) at Dec. 31, 2019 | 17,048,000 | |||||||
Ending balance at Dec. 31, 2019 | 2,280,260 | 622,042 | (20,039) | 2,047,352 | $ 113,678 | 714,824 | 1,220,129 | (1,279) |
Increase (decrease) in stockholders' equity | ||||||||
Net income for common stock | 197,824 | 197,824 | 169,340 | 169,340 | ||||
Other comprehensive income (loss), net of taxes (benefits) | 18,775 | 18,775 | (1,640) | (1,640) | ||||
Issuance of common stock, net of expenses (in shares) | 276,000 | |||||||
Issuance of common stock, net of expenses | 3,973 | 34,000 | $ 1,837 | 32,163 | ||||
Common stock dividends | $ (144,096) | (144,096) | (107,134) | (107,134) | ||||
Ending balance (in shares) at Dec. 31, 2020 | 109,181,124 | 17,324,000 | ||||||
Ending balance at Dec. 31, 2020 | $ 2,337,502 | 660,398 | (1,264) | 2,141,918 | $ 115,515 | 746,987 | 1,282,335 | (2,919) |
Increase (decrease) in stockholders' equity | ||||||||
Net income for common stock | 246,166 | 246,166 | 177,642 | 177,642 | ||||
Other comprehensive income (loss), net of taxes (benefits) | (51,269) | (51,269) | (361) | (361) | ||||
Issuance of common stock, net of expenses (in shares) | 429,000 | |||||||
Issuance of common stock, net of expenses | 5,027 | 54,400 | $ 2,861 | 51,539 | ||||
Common stock dividends | $ (148,643) | (148,643) | (111,700) | (111,700) | ||||
Ending balance (in shares) at Dec. 31, 2021 | 109,311,785 | 17,753,000 | ||||||
Ending balance at Dec. 31, 2021 | $ 2,390,884 | $ 757,921 | $ (52,533) | $ 2,261,899 | $ 118,376 | $ 798,526 | $ 1,348,277 | $ (3,280) |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows - HECO - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income | $ 248,056 | $ 199,714 | $ 219,772 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 246,158 | 238,114 | 229,858 |
Other amortization | 32,544 | 52,664 | 48,255 |
Deferred income taxes | (5,398) | (1,706) | (15,085) |
Allowance for equity funds used during construction | (9,534) | (8,768) | (11,987) |
Other | (7,060) | 1,366 | 18,568 |
Changes in assets and liabilities | |||
Decrease (increase) in fuel oil stock | (45,819) | 34,202 | (11,493) |
Decrease (increase) in regulatory assets | (13,874) | 1,007 | 71,262 |
Increase (decrease) in regulatory liabilities | 15,358 | (16,562) | 1,953 |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 41,331 | (35,610) | (27,538) |
Decrease in defined benefit pension and other postretirement benefit plans liability | (6,660) | (2,029) | (4,482) |
Change in other assets and liabilities | (52,882) | (42,189) | (36,677) |
Net cash provided by operating activities | 375,673 | 429,407 | 512,470 |
Cash flows from investing activities | |||
Capital expenditures | (314,524) | (383,895) | (457,520) |
Other, net | 27 | 3,412 | 13,291 |
Net cash used in investing activities | (1,179,592) | (1,413,648) | (541,709) |
Cash flows from financing activities | |||
Common stock dividends | (148,643) | (144,096) | (139,463) |
Proceeds from issuance of long-term debt | 285,886 | 415,997 | 289,349 |
Repayment of long-term debt and funds transferred for repayment of long-term debt | (82,262) | (178,969) | (287,285) |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (10,493) | (71,219) | 86,718 |
Proceeds from issuance of short-term debt | 0 | 165,000 | 75,000 |
Repayment of short-term debt | (65,000) | (150,000) | (50,000) |
Other | (3,080) | (3,203) | (1,836) |
Net cash used in financing activities | 756,402 | 1,115,535 | 87,716 |
Net increase (decrease) in cash and equivalents | (47,517) | 131,294 | 58,477 |
Cash, cash equivalents and restricted cash, January 1 | 358,979 | 227,685 | 169,208 |
Cash, cash equivalents and restricted cash, December 31 | 311,462 | 358,979 | 227,685 |
Less: Restricted cash | (5,911) | (17,558) | (30,872) |
Cash and cash equivalents | 305,551 | 341,421 | 196,813 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Cash flows from operating activities | |||
Net income | 179,637 | 171,335 | 158,835 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 229,469 | 222,733 | 215,731 |
Other amortization | 21,737 | 33,746 | 29,631 |
Deferred income taxes | (3,829) | 3,151 | (16,284) |
State refundable credit | (10,582) | (9,961) | (8,369) |
Bad debt expense | 2,183 | 2,115 | 2,150 |
Allowance for equity funds used during construction | (9,534) | (8,768) | (11,987) |
Bill credits | 2,000 | 0 | 0 |
Accrued environmental reserve | 0 | 6,556 | 406 |
Other | 1,350 | 2,610 | 27,459 |
Changes in assets and liabilities | |||
Decrease (increase) in accounts receivable | (50,090) | (7,286) | 18,822 |
Decrease (increase) in accrued unbilled revenues | (27,464) | 15,285 | 4,495 |
Decrease (increase) in fuel oil stock | (45,840) | 33,699 | (12,002) |
Increase in materials and supplies | (4,533) | (6,642) | (5,498) |
Decrease (increase) in regulatory assets | (13,874) | 1,007 | 71,262 |
Increase (decrease) in regulatory liabilities | 15,358 | (16,562) | 1,953 |
Increase (decrease) in accounts payable | 17,671 | (33,129) | (2,051) |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 26,930 | (37,180) | (28,523) |
Decrease in defined benefit pension and other postretirement benefit plans liability | (5,154) | (4,306) | (4,448) |
Change in other assets and liabilities | (52,302) | (31,852) | (17,626) |
Net cash provided by operating activities | 273,133 | 336,551 | 423,956 |
Cash flows from investing activities | |||
Capital expenditures | (292,000) | (350,864) | (419,898) |
Other, net | 6,035 | 6,070 | 11,374 |
Net cash used in investing activities | (285,965) | (344,794) | (408,524) |
Cash flows from financing activities | |||
Common stock dividends | (111,700) | (107,134) | (101,252) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,995) | (1,995) | (1,995) |
Proceeds from issuance of common stock | 54,400 | 34,000 | 35,500 |
Proceeds from issuance of long-term debt | 115,000 | 255,000 | 280,000 |
Repayment of long-term debt and funds transferred for repayment of long-term debt | 0 | (109,000) | (283,546) |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | (38,987) | 38,987 |
Proceeds from issuance of short-term debt | 0 | 100,000 | 75,000 |
Repayment of short-term debt | (50,000) | (100,000) | (50,000) |
Other | (941) | (2,209) | (2,109) |
Net cash used in financing activities | 4,764 | 29,675 | (9,415) |
Net increase (decrease) in cash and equivalents | (8,068) | 21,432 | 6,017 |
Cash, cash equivalents and restricted cash, January 1 | 63,326 | 41,894 | 35,877 |
Cash, cash equivalents and restricted cash, December 31 | 55,258 | 63,326 | 41,894 |
Less: Restricted cash | (3,089) | (15,966) | (30,872) |
Cash and cash equivalents | $ 52,169 | $ 47,360 | $ 11,022 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 1 · Summary of significant accounting policies General Hawaiian Electric Industries, Inc. (HEI) is a holding company with direct and indirect subsidiaries principally engaged in electric utility, banking, and non-regulated renewable/sustainable infrastructure businesses operating in the State of Hawaii. HEI owns Hawaiian Electric Company, Inc. (Hawaiian Electric), ASB Hawaii, Inc. (ASB Hawaii), an intermediate holding company that owns American Savings Bank, F.S.B. (ASB), and Pacific Current, LLC (Pacific Current). Hawaiian Electric and its wholly owned operating subsidiaries, Hawaii Electric Light Company, Inc. (Hawaii Electric Light) and Maui Electric Company, Limited (Maui Electric), are regulated public electric utilities (collectively, the Utilities) in the business of generating, purchasing, transmitting, distributing and selling electric energy on all major islands in Hawaii other than Kauai. See Note 2. ASB is a federally chartered, full-service community bank providing a wide range of banking services to individual and business customers through its 42 branches on Oahu (29), Maui (6), Hawaii (4), Kauai (2) and Molokai (1). Pacific Current’s significant subsidiaries include Hamakua Energy, LLC (Hamakua Energy), Mauo, LLC (Mauo) and Kaʻieʻie Waho Company, LLC (Kaʻieʻie Waho). Hamakua Energy, owns and operates a 60-megawatt (MW) combined-cycle power plant, which sells the power it produces only to Hawaii Electric Light. Mauo is a commercial-scale, solar-plus-storage project (8.6 MW of solar and 42.3 MW of storage) currently under construction on the islands of Oahu and Maui. Kaʻieʻie Waho owns and operates a 6-MW photovoltaic project, which sells all power produced to Kauai Island Utility Cooperative. Basis of presentation. In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change for HEI and its subsidiaries (collectively, the Company) include the amounts reported as fair value for investment securities (ASB only); pension and other postretirement benefit obligations; contingencies and litigation; income taxes; regulatory assets and liabilities (Utilities only); electric utility unbilled revenues (Utilities only); asset retirement obligations (Utilities only); and allowance for credit losses (ASB only). Consolidation. The HEI consolidated financial statements include the accounts of HEI and its subsidiaries. The Hawaiian Electric consolidated financial statements include the accounts of Hawaiian Electric and its subsidiaries. When HEI or Hawaiian Electric has a controlling financial interest in another entity (usually, majority voting interest), that entity is consolidated. Investments in companies over which the Company or the Utilities have the ability to exercise significant influence, but not control, are accounted for using the equity method. The consolidated financial statements exclude variable interest entities (VIEs) when the Company or the Utilities are not the primary beneficiaries. Significant intercompany amounts are eliminated in consolidation (see Note 2 for limited exceptions). Cash and cash equivalents. The Utilities consider cash on hand, deposits in banks, money market accounts, certificates of deposit, short-term commercial paper of non-affiliates and liquid investments (with original maturities of three months or less) to be cash and cash equivalents. The Company considers the same items to be cash and cash equivalents as well as ASB’s deposits with the Federal Home Loan Bank (FHLB), federal funds sold (excess funds that ASB loans to other banks overnight at the federal funds rate) and securities purchased under resale agreements with original maturities of three months or less. Additionally, ASB is required by the Federal Reserve System to maintain noninterest-bearing cash reserves equal to a percentage of certain deposits. The reserve requirement for ASB at December 31, 2021 and 2020 was nil. In March 2020, the Federal Reserve Board reduced the reserve requirement to nil to support the depository institutions during the COVID-19 pandemic and effective March 2021, the change was made permanent. Restricted cash. The Utilities consider funds on deposit with trustees, which represent the undrawn proceeds from the issuance of special purpose revenue bonds, to be restricted cash because these funds are available only to finance (or reimburse payment of) approved capital expenditures. In addition to the Utilities’ funds on deposit with trustees, the Company considers cash held by trustees related to non-recourse loans at Pacific Current subsidiaries to be restricted cash. At December 31, 2021 and 2020, total restricted cash of the Company was $5.9 million and $17.6 million, respectively, and for the Utilities was $3.1 million and $16.0 million, respectively. Property, plant and equipment. Property, plant and equipment are reported at cost. Self-constructed electric utility plant includes engineering, supervision, administrative and general costs and an allowance for the cost of funds used during the construction period. These costs are recorded in construction in progress and are transferred to utility plant when construction is completed and the facilities are either placed in service or become useful for public utility purposes. Costs for betterments that make utility plant more useful, more efficient, of greater durability or of greater capacity are also capitalized. Upon the retirement or sale of electric utility plant, generally no gain or loss is recognized. The cost of the plant retired is charged to accumulated depreciation. Amounts collected from customers for cost of removal are included in regulatory liabilities. See discussion regarding “Utility projects” in Note 3. Depreciation. Depreciation is computed primarily using the straight-line method over the estimated lives of the assets being depreciated. Electric utility plant additions in the current year are depreciated beginning January 1 of the following year in accordance with rate-making. Electric utility plant has lives ranging from 16 to 51 years for production plant, from 10 to 79 years for transmission and distribution plant, and from 5 to 50 years for general plant. The Utilities’ composite annual depreciation rate, which includes a component for cost of removal, was 3.2% in 2021, 2020 and 2019. Retirement benefits. Pension and other postretirement benefit costs are charged primarily to expense and electric utility plant (in the case of the Utilities). Funding for the Company’s qualified pension plans (Plans) is based on actuarial assumptions adopted by the Pension Investment Committee administering the Plans. The participating employers contribute amounts to pension trusts for the Plans in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA), including changes promulgated by the Pension Protection Act of 2006, and considering the deductibility of contributions under the Internal Revenue Code. The Company generally funds at least the net periodic pension cost during the year, subject to ERISA minimum and Internal Revenue Code limits and targeted funded status. Certain health care and/or life insurance benefits are provided to eligible retired employees and the employees’ beneficiaries and covered dependents. The Company generally funds the net periodic postretirement benefit costs other than pensions (except for executive life) for postretirement benefits other than pensions (OPEB), while maximizing the use of the most tax-advantaged funding vehicles, subject to cash flow requirements and reviews of the funded status with the consulting actuary. Environmental expenditures. The Company and the Utilities are subject to numerous federal and state environmental statutes and regulations. In general, environmental contamination treatment costs are charged to expense. Environmental costs are capitalized if the costs extend the life, increase the capacity, or improve the safety or efficiency of property; the costs mitigate or prevent future environmental contamination; or the costs are incurred in preparing the property for sale. Environmental costs are either capitalized or charged to expense when environmental assessments and/or remedial efforts are probable and the cost can be reasonably estimated. The Utilities review their sites and measure the liability quarterly by assessing a range of reasonably likely costs of each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. Income taxes. Deferred income tax assets and liabilities are established for the temporary differences between the financial reporting bases and the tax bases of the Company’s and the Utilities’ assets and liabilities at federal and state tax rates expected to be in effect when such deferred tax assets or liabilities are realized or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. HEI and the Utilities’ investment tax credits are deferred and amortized over the estimated useful lives of the properties to which the credits relate (and for the Utilities, this treatment is in accordance with Accounting Standards Codification (ASC) Topic 980, “Regulated Operations”). The Utilities are included in the consolidated income tax returns of HEI. However, income tax expense has been computed for financial statement purposes as if each utility filed a separate income tax return and Hawaiian Electric filed a consolidated Hawaiian Electric income tax return. Governmental tax authorities could challenge a tax return position taken by the Company. The Company and the Utilities use a “more-likely-than-not” recognition threshold and measurement standard for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Fair value measurements. Fair value estimates are estimates of the price that would be received to sell an asset, or paid upon the transfer of a liability, in an orderly transaction between market participants at the measurement date. The fair value estimates are generally determined based on assumptions that market participants would use in pricing the asset or liability and are based on market data obtained from independent sources. However, in certain cases, the Company and the Utilities use their own assumptions about market participant assumptions based on the best information available in the circumstances. These valuations are estimates at a specific point in time, based on relevant market information, information about the financial instrument and judgments regarding future expected loss experience, economic conditions, risk characteristics of various financial instruments and other factors. These estimates do not reflect any premium or discount that could result if the Company or the Utilities were to sell its entire holdings of a particular financial instrument at one time. Because no active trading market exists for a portion of the Company’s and the Utilities’ financial instruments, fair value estimates cannot be determined with precision. Changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses could have a significant effect on fair value estimates, but have not been considered in making such estimates. The Company and the Utilities group their financial assets measured at fair value in three levels outlined as follows: Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Classification in the hierarchy is based upon the lowest level input that is significant to the fair value measurement of the asset or liability. For instruments classified in Level 1 and 2 where inputs are primarily based upon observable market data, there is less judgment applied in arriving at the fair value. For instruments classified in Level 3, management judgment is more significant due to the lack of observable market data. The Company reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in fair value measurements may result in a reclassification between the fair value hierarchy levels and are recognized based on period-end balances. Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include mortgage servicing rights accounted for by the amortization method, loan impairments for certain loans, real estate acquired in settlement of loans, goodwill and asset retirement obligations (AROs). Earnings per share (HEI only). Basic earnings per share (EPS) is computed by dividing net income for common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that dilutive common shares for stock compensation is added to the denominator. There were no shares of antidilutive securities outstanding during the years ended December 31, 2021, 2020 and 2019. Impairment of long-lived assets and long-lived assets to be disposed of. The Company and the Utilities review long-lived assets and certain identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. Recent accounting pronouncements. 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. Financial Disclosures . In August 2021, the FASB issued ASU 2021-06 , “Presentation of Financial Statements (Topic 205), Financial Services-Depository and Lending (Topic 942), and Financial Services-Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33- 10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants.” This ASU incorporates recent SEC rule changes into the FASB Codification, including SEC Final Rule Releases No. 33-10786, “Amendments to Financial Disclosures about Acquired and Disposed Businesses ” , and No. 33-10835, “Update of Statistical Disclosures for Bank and Savings and Loan Registrants.” The amendments in this update are effective upon addition to the FASB Codification and the Company determined that this guidance does not have a material impact on the Company’s consolidated financial statements. Electric utility Regulation by the Public Utilities Commission of the State of Hawaii (PUC). The Utilities are regulated by the PUC and account for the effects of regulation under FASB ASC Topic 980, “Regulated Operations.” As a result, the Utilities’ financial statements reflect assets, liabilities, revenues and expenses based on current cost-based rate-making regulations (see Note 3—“Regulatory assets and liabilities”). Their continued accounting under ASC Topic 980 generally requires that rates are established by an independent, third-party regulator; rates are designed to recover the costs of providing service; and it is reasonable to assume that rates can be charged to, and collected from, customers. Management believes that the operations of the Utilities, including the impact of the newly approved PBR Framework, currently satisfy the criteria under ASC Topic 980. The rate schedules of the Utilities include energy costs recovery clauses (ECRCs) under which electric rates are adjusted for changes in the weighted-average price paid for fuel oil and certain components of purchased power, and the relative amounts of company-generated power and purchased power. The rate schedules also include purchased power adjustment clauses (PPACs) under which the remaining purchase power expenses are recovered through surcharge mechanisms. The amounts collected through the ECRCs and PPACs are required to be reconciled quarterly. Accounts receivable. Accounts receivable are recorded at the invoiced amount. The Utilities generally assess a late payment charge on balances unpaid from the previous month. The allowance for doubtful accounts is the Utilities’ best estimate of the amount of expected credit losses in the Utilities’ existing accounts receivable. Due to the economic impact of COVID-19 on customers and the moratorium on electric service disconnections through May 31, 2021, the allowance for doubtful accounts increased in 2020 and 2021. At December 31, 2021 and 2020, the allowance for customer accounts receivable, accrued unbilled revenues and other accounts receivable was $26.1 million and $17.8 million, respectively. Electric utility revenues. Revenues related to electric service are generally recorded when service is rendered and include revenues applicable to energy consumed in the accounting period but not yet billed to the customers. The Utilities also record revenue under a decoupling mechanism. See “Decoupling” discussion in Note 3. Repairs and maintenance costs. Repairs and maintenance costs for overhauls of generating units are generally expensed as they are incurred. Allowance for funds used during construction (AFUDC). AFUDC represents the estimated costs of debt (i.e., interest) and equity funds used to finance plant construction. AFUDC is credited on the statement of income and charged to construction in progress on the balance sheet. If a project under construction is delayed for an extended period of time, AFUDC on the delayed project may be stopped after assessing the causes of the delay and probability of recovery. The tax gross up of the allowance for equity funds used during construction is credited to income taxes on the statement of income and charged to a regulatory asset. This gross up, net of amortization of the regulatory asset, is reflected in income tax expense. The weighted-average AFUDC rate was 7.1% in 2021, 7.1% in 2020 and 7.4% in 2019, and reflected quarterly compounding. Asset retirement obligations. AROs are accounted for in accordance with ASC 410-20, Asset Retirement Obligations . AROs are recognized at present value of expected costs to retire long-lived assets from service, provided a legal obligation exists and a reasonable estimate of the fair value and the settlement date can be made. In the subsequent period, the liability is accreted to its future value while the asset retirement cost is depreciated over the estimated useful life of the underlying asset. The Utilities’ recognition of AROs have no impact on earnings, as the cost of the AROs are recovered over the life of the asset through depreciation. AROs recognized by the Utilities relate to legal obligations with the retirement of plant and equipment, including removal of asbestos and other hazardous materials. See “Asset retirement obligations” in Note 3. Bank (HEI only) Investment securities. Investments in debt securities are classified as held-to-maturity (HTM), trading or available-for-sale (AFS). ASB determines the appropriate classification at the time of purchase. Debt securities that ASB intends to and has the ability to hold to maturity are classified as HTM securities and reported at amortized cost. Marketable debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Marketable debt securities not classified as either HTM or trading securities are classified as AFS and reported at fair value. Unrealized gains and losses for AFS securities are excluded from earnings and reported on a net basis in accumulated other comprehensive income (AOCI) until realized. Interest income is recorded on an accrual basis. Discounts and premiums on securities are accreted or amortized into interest income using the interest method over the remaining contractual lives of the agency obligation securities and the estimated lives of the mortgage-backed securities adjusted for anticipated prepayments. ASB uses actual prepayment experience and estimates of future prepayments to determine the constant effective yield necessary to apply the interest method of income recognition. The discounts and premiums on the agency obligations portfolio are accreted or amortized on a prospective basis using expected contractual cash flows. The discounts and premiums on the mortgage-backed securities portfolio are accreted or amortized on a retrospective basis using changes in anticipated prepayments. This method requires a retrospective adjustment of the effective yield each time ASB changes the estimated life as if the new estimate had been known since the original acquisition date of the securities. Estimates of future prepayments are based on the underlying collateral characteristics and historic or projected prepayment behavior of each security. The specific identification method is used in determining realized gains and losses on the sales of securities. AFS debt securities with unrealized losses are reviewed quarterly. ASB will first assess whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either criteria is met, the security’s amortized cost basis is written down to fair value through income. For AFS securities that do not meet the aforementioned criteria, ASB evaluates whether the decline in fair value is the result of a credit loss or other factors. The determination of whether or not a credit loss exists is based on consideration of the cash flows expected to be collected from the debt security. ASB develops these expectations after considering various factors such as agency ratings, the financial condition of the issuer, payment history, payment structure of the security, industry and market conditions, underlying collateral and other factors which may be relevant based on the facts and circumstances pertaining to individual securities. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit losses. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. As of December 31, 2021, 2020 and 2019, there was no indicated impairment as ASB expects to collect the contractual cash flows for these investments. Held-to-maturity debt securities are assessed periodically to determine if a valuation allowance is necessary to absorb credit losses expected to occur over the remaining contractual life of the securities. The carrying amount of held-to-maturity debt securities is presented net of the valuation allowance for credit losses when such an allowance is deemed necessary. Stock in FHLB is carried at cost and is reviewed at least quarterly for impairment, with valuation adjustments recognized in noninterest income. Loans . ASB carries loans at amortized cost less the allowance for credit losses, loan origination fees (net of direct loan origination costs), commitment fees and purchase premiums and discounts. Interest on loans is credited to income as it is earned. Discounts and premiums are accreted or amortized over the life of the loans using the interest method. Loan origination fees (net of direct loan origination costs) are deferred and recognized as an adjustment in yield over periods not exceeding the contractual life of the loan using the interest method or taken into income when the loan is paid off or sold. Nonrefundable commitment fees (net of direct loan origination costs, if applicable) received for commitments to originate or purchase loans are deferred and, if the commitment is exercised, recognized as an adjustment of yield over the life of the loan using the interest method. Nonrefundable commitment fees received for which the commitment expires unexercised are recognized as income upon expiration of the commitment. Loans held for sale are stated at the lower of cost or estimated fair value on an aggregate basis. Premiums, discounts and net deferred loan fees are not amortized while a loan is classified as held for sale. A sale is recognized only when the consideration received is other than beneficial interests in the assets sold and control over the assets is transferred irrevocably to the buyer. Gains or losses on sales of loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the allocated basis of the loans sold. Allowance for credit losses. The allowance for credit losses (ACL) represents management’s estimate of expected credit losses over the expected contractual life of the related loans as of the balance sheet date. Contractual terms are adjusted for expected prepayments but are not extended for expected extensions, renewals or modifications except in circumstances where ASB reasonably expects to execute a troubled debt restructuring with the borrower or where certain extension or renewal options are embedded in the original contract and not unconditionally cancellable by the Bank. Accrued interest receivables on loans are presented in the Consolidated Financial Statements as a component of other assets. When accrued interest is deemed to be uncollectible (typically when a loan is placed on nonaccrual status), interest income is reversed against interest income on loans. ASB follows established policies for placing loans on nonaccrual status, so uncollectible accrued interest receivable is reversed in a timely manner. As a result, the Bank has elected not to measure an allowance for credit losses for accrued interest receivables. Credit losses are charged and recoveries are credited to the ACL. The ACL is maintained at a level the Bank considers to be adequate and is based on ongoing assessments and evaluations of the collectability of loans. The Bank’s expected credit loss models consider historical credit loss experience, current market and economic conditions, and forecasted changes in market and economic conditions if such forecasts are considered reasonable and supportable. Generally, the Bank considers its forecasts to be reasonable and supportable for a period of up to a year from the estimation date. For periods beyond the reasonable and supportable forecast period, expected credit losses are estimated by reverting to historical loss information without adjustment for changes in economic conditions. The Bank evaluates the length of its reasonable and supportable forecast period, its reversion period and reversion methodology at least annually, or more often if warranted by economic conditions or other circumstances. The Bank’s methodology for determining the ACL includes an estimate of expected credit losses on a collective basis for groups of loans with similar risk characteristics and specific allowances for loans which are individually evaluated. ASB disaggregates its portfolio loans into portfolio segments for purposes of determining the allowance for credit losses. Commercial, commercial real estate, and commercial construction loans are defined as non-homogeneous loans and ASB utilizes a risk rating system for evaluating the credit quality of the loans. Non-homogeneous loans are also categorized into the regulatory asset quality classifications—Pass, Special Mention, Substandard, Doubtful, and Loss based on credit quality. ASB utilizes a numerical-based, risk rating “PD Model” that takes into consideration fiscal year-end financial information of the borrower and identified financial attributes including retained earnings, operating cash flows, interest coverage, liquidity and leverage that demonstrate a strong correlation with default to assign default probabilities at the borrower level. In addition, a loss given default (LGD) value is assigned to each loan to measure loss in the event of default based on loan specific features such as collateral that mitigates the amount of loss in the event of default. Residential, consumer and credit scored business loans are considered homogeneous loans, which are typically underwritten based on common, uniform standards. For the homogeneous portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. ASB supplements performance data with external credit bureau data and credit scores such as the Fair Isaac |
Segment financial information
Segment financial information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment financial information | Note 2 · Segment financial information The electric utility and bank segments are strategic business units of the Company that offer different products and services and operate in different regulatory environments. The accounting policies of the segments are the same as those described for the Company in the summary of significant accounting policies, except as otherwise indicated and except that federal and state income taxes for each segment are calculated on a “stand-alone” basis. HEI evaluates segment performance based on net income. Each segment accounts for intersegment sales and transfers as if the sales and transfers were to third parties (i.e., at current market prices). Intersegment revenues consist primarily of Hamakua Energy electricity revenues, interest, rent and preferred stock dividends. Electric utility Hawaiian Electric and its wholly owned operating subsidiaries, Hawaii Electric Light and Maui Electric, are public electric utilities in the business of generating, purchasing, transmitting, distributing and selling electric energy on all major islands in Hawaii other than Kauai, and are regulated by the PUC. The utility subsidiaries are aggregated within the electric utility segment because they: (1) are involved in the business of supplying electric energy in the same geographical location (i.e., the State of Hawaii), (2) have similar production processes that comprise electric generation, (3) serve similar customers within their franchise territories (e.g., residential, commercial and industrial customers), (4) use similar electric grids to distribute the energy to their customers, (5) are regulated by the PUC and undergo similar rate-making processes, (6) have similar economic characteristics and (7) perform financial reporting oversight and management of the business at the consolidated level. Bank ASB is a federally chartered savings bank that provides a full range of banking services to individual and business customers through its branch system in Hawaii. ASB is subject to examination and comprehensive regulation by the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC), and is subject to reserve requirements established by the Board of Governors of the Federal Reserve System. Other “Other” includes amounts for the holding companies (HEI and ASB Hawaii), Pacific Current and its subsidiaries, and other subsidiaries not qualifying as reportable segments, and intercompany eliminations. Pacific Current. Pacific Current was formed in 2017 to focus on investing in non-regulated renewable energy and sustainable infrastructure in the State of Hawaii to help achieve the state’s sustainability goals. Significant investments of Pacific Current made through its subsidiaries, Hamakua Energy, Mauo and Kaʻieʻie Waho, include: Hamakua power plant . In 2017, Hamakua Energy acquired Hamakua Energy Partners, L.P.’s 60-MW combined cycle power plant and other assets from affiliates of ArcLight Capital Partners, a private equity firm. The plant sells all the power it produces to Hawaii Electric Light under an existing power purchase agreement (PPA) that expires in 2030. Solar-plus-storage power purchase agreement . On February 2, 2018, Mauo executed definitive agreements to acquire a solar-plus-storage PPA for a multi-site, commercial-scale project that will provide 8.6 MW of solar capacity and 42.3 megawatt-hour (MWh) of storage capacity on the islands of Maui and Oahu. The PPA has a 15-year term with a customer option to extend for an additional five years. The system is being constructed by a third party contractor under an Engineering, Procurement and Construction (EPC) contract that was contemporaneously negotiated and executed by Mauo. The EPC contract provides a fixed price for the purchase of the completed system, a project completion schedule and performance obligations designed to match the requirements of the solar-plus-storage PPA. Mauo is funding the construction of the project with a construction facility that will be repaid on a pro rata basis at the commercial operation dates (ultimately with cash from investment tax credits, state renewable tax credits, non-recourse project debt, and equity). 6-MW photovoltaic system . In September 2020 Kaʻieʻie Waho acquired a 6-MW photovoltaic situated on 20 acres of land on the island of Kauai. Kauai Island Utility Cooperative purchases all of the power generated by the system under a PPA that expires in 2033. Segment financial information was as follows: (in thousands) Electric utility Bank Other Total 2021 Revenues from external customers $ 2,539,589 $ 306,398 $ 4,392 $ 2,850,379 Intersegment revenues (eliminations) 47 — (47) — Revenues 2,539,636 306,398 4,345 2,850,379 Depreciation and amortization 251,206 21,124 6,372 278,702 Interest expense, net 72,447 5,040 21,916 99,403 Income (loss) before income taxes 223,785 130,559 (43,481) 310,863 Income taxes (benefit) 44,148 29,325 (10,666) 62,807 Net income (loss) 179,637 101,234 (32,815) 248,056 Preferred stock dividends of subsidiaries 1,995 — (105) 1,890 Net income (loss) for common stock 177,642 101,234 (32,710) 246,166 Capital expenditures 1 292,000 11,131 11,393 314,524 Assets (at December 31, 2021) 6,491,625 9,181,603 149,409 15,822,637 2020 Revenues from external customers $ 2,265,281 $ 313,511 $ 983 $ 2,579,775 Intersegment revenues (eliminations) 39 — (39) — Revenues 2,265,320 313,511 944 2,579,775 Depreciation and amortization 256,479 29,349 4,950 290,778 Interest expense, net 67,794 11,114 20,900 99,808 Income (loss) before income taxes 211,753 69,271 (40,400) 240,624 Income taxes (benefit) 40,418 11,688 (11,196) 40,910 Net income (loss) 171,335 57,583 (29,204) 199,714 Preferred stock dividends of subsidiaries 1,995 — (105) 1,890 Net income (loss) for common stock 169,340 57,583 (29,099) 197,824 Capital expenditures 1 350,864 12,203 20,828 383,895 Assets (at December 31, 2020) 6,457,373 8,396,533 150,101 15,004,007 2019 Revenues from external customers $ 2,545,865 $ 327,917 $ 166 $ 2,873,948 Intersegment revenues (eliminations) 77 — (77) — Revenues 2,545,942 327,917 89 2,873,948 Depreciation and amortization 245,362 28,675 4,076 278,113 Interest expense, net 70,842 18,440 20,057 109,339 Income (loss) before income taxes 197,140 112,034 (37,765) 271,409 Income taxes (benefit) 38,305 23,061 (9,729) 51,637 Net income (loss) 158,835 88,973 (28,036) 219,772 Preferred stock dividends of subsidiaries 1,995 — (105) 1,890 Net income (loss) for common stock 156,840 88,973 (27,931) 217,882 Capital expenditures 1 419,898 24,175 13,447 457,520 Assets (at December 31, 2019) 6,388,682 7,233,017 123,552 13,745,251 1 Contributions in aid of construction balances are included in capital expenditures. Intercompany electricity sales of the Utilities to ASB and “other” segments are not eliminated because those segments would need to purchase electricity from another source if it were not provided by the Utilities and the profit on such sales is nominal. Bank fees that ASB charges the Utilities and “other” segments are not eliminated because those segments would pay fees to another financial institution if they were to bank with another institution and the profit on such fees is nominal. Hamakua Energy ’s sales to Hawaii Electric Light (a regulated affiliate) are eliminated in consolidation. |
Electric utility segment
Electric utility segment | 12 Months Ended |
Dec. 31, 2021 | |
Electric Utility Subsidiary [Abstract] | |
Electric utility segment | Note 3 · Electric utility segment Regulatory assets and liabilities. Regulatory assets represent deferred costs and accrued decoupling revenues which are expected to be recovered through rates over PUC-authorized periods. Generally, the Utilities do not earn a return on their regulatory assets; however, they have been allowed to recover interest on certain regulatory assets and to include certain regulatory assets in rate base. Regulatory liabilities represent amounts included in rates and collected from ratepayers for costs expected to be incurred in the future, or amounts collected in excess of costs incurred that are refundable to customers. For example, the regulatory liability for cost of removal in excess of salvage value represents amounts that have been collected from ratepayers for costs that are expected to be incurred in the future to retire utility plant. Generally, the Utilities include regulatory liabilities in rate base or are required to apply interest to certain regulatory liabilities. In the table below, noted in parentheses are the original PUC authorized amortization or recovery periods and, if different, the remaining amortization or recovery periods as of December 31, 2021 are noted. Regulatory assets were as follows: December 31 2021 2020 (in thousands) Retirement benefit plans (balance primarily varies with plans’ funded statuses) $ 351,070 $ 592,644 Income taxes (1-55 years) 88,087 96,171 Decoupling revenue balancing account and RAM (1-2 years) 31,607 10,432 Unamortized expense and premiums on retired debt and equity issuances (1-18 years; 1-18 years remaining) 7,300 8,654 Vacation earned, but not yet taken (1 year) 14,255 15,665 COVID-19 related costs (to be determined by PUC) 27,839 18,032 Other (1-38 years remaining) 45,385 25,110 Total regulatory assets $ 565,543 $ 766,708 Included in: Current assets $ 66,664 $ 30,435 Long-term assets 498,879 736,273 Total regulatory assets $ 565,543 $ 766,708 Regulatory liabilities were as follows: December 31 2021 2020 (in thousands) Cost of removal in excess of salvage value (1-79 years) $ 562,514 $ 541,730 Income taxes (1-55 years) 337,304 360,426 Decoupling revenue balancing account and RAM (1-2 years) 251 1,957 Retirement benefit plans (balance primarily varies with plans’ funded statuses) 51,734 29,759 Solar tax credits (1-20 years) 27,123 8,096 Other (1-4 years remaining) 17,842 17,818 Total regulatory liabilities $ 996,768 $ 959,786 Included in: Current liabilities $ 29,760 $ 37,301 Long-term liabilities 967,008 922,485 Total regulatory liabilities $ 996,768 $ 959,786 The regulatory asset and liability relating to retirement benefit plans was recorded as a result of pension and OPEB tracking mechanisms adopted by the PUC in rate case decisions for the Utilities in 2007 (see Note 10). Major customers. The Utilities received 11% ($267 million), 11% ($249 million) and 11% ($281 million) of their operating revenues from the sale of electricity to various federal government agencies in 2021, 2020 and 2019, respectively. Cumulative preferred stock. The following series of cumulative preferred stock are redeemable only at the option of the respective company at the following prices in the event of voluntary liquidation or redemption: December 31, 2021 Voluntary Redemption Series C, D, E, H, J and K (Hawaiian Electric) $ 20 $ 21 I (Hawaiian Electric) 20 20 G (Hawaii Electric Light) 100 100 H (Maui Electric) 100 100 Hawaiian Electric is obligated to make dividend, redemption and liquidation payments on the preferred stock of each of its subsidiaries if the respective subsidiary is unable to make such payments, but this obligation is subordinated to Hawaiian Electric’s obligation to make payments on its own preferred stock. Related-party transactions. HEI charged the Utilities $5.2 million, $5.6 million and $6.0 million for general management and administrative services in 2021, 2020 and 2019, respectively. The amounts charged by HEI to its subsidiaries for services provided by HEI employees are allocated primarily on the basis of time expended in providing such services. In 2021, 2020 and 2019, Hamakua Energy (an indirect subsidiary of HEI) sold energy and capacity to Hawaii Electric Light (subsidiary of Hawaiian Electric and indirect subsidiary of HEI) under a PPA in the amount of $54 million, $50 million and $68 million, respectively. Hawaiian Electric’s short-term borrowings from HEI totaled nil at December 31, 2021 and 2020. Borrowings among the Utilities are eliminated in consolidation. Interest charged by HEI to Hawaiian Electric was not material for the years ended December 31, 2021 and 2020. Unconsolidated variable interest entities. Power purchase agreements . As of December 31, 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 13.0 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 consolidated financial statements. Hamakua Energy is an indirect subsidiary of Pacific Current, and is consolidated in HEI’s consolidated financial statements. For the other PPAs with IPPs, the Utilities have concluded that the consolidation of the IPPs was not required because either the Utilities do not have variable interests in the IPPs due to the absence of an obligation in the PPAs for the Utilities to absorb any variability of the IPPs, or the IPP was considered a “governmental organization,” and thus excluded from the scope of accounting standards for VIEs. The consolidation of any significant IPP could have a material effect on the consolidated financial statements, including the recognition of a significant amount of assets and liabilities and, if such a consolidated IPP were operating at a loss and had insufficient equity, the potential recognition of such losses. If the Utilities determine they are required to consolidate the financial statements of such an IPP and the consolidation has a material effect, the Utilities would retrospectively apply accounting standards for VIEs to the IPP. Commitments and contingencies. Contingencies . The Utilities are subject in the normal course of business to pending and threatened legal proceedings. Management does not anticipate that the aggregate ultimate liability arising out of these pending or threatened legal proceedings will be material to its financial position. However, the Utilities cannot rule out the possibility that such outcomes could have a material effect on the results of operations or liquidity for a particular reporting period in the future. Power purchase agreements . Purchases from all IPPs were as follows: Years ended December 31 2021 2020 2019 (in millions) Kalaeloa $ 204 $ 149 $ 214 AES Hawaii 130 133 139 HPOWER 70 70 76 Hamakua Energy 29 50 68 Puna Geothermal Venture 53 1 — Wind IPPs 124 105 95 Solar IPPs 50 57 36 Other IPPs 1 10 4 5 Total IPPs $ 670 $ 569 $ 633 1 Includes hydro power and other PPAs As of December 31, 2021, the Utilities had five firm capacity PPAs for a total of 540.4 megawatts (MW) of firm capacity. The PGV facility with 34.6 MW of firm capacity went offline in May 2018 due to lava flow on Hawaii Island, but returned to service with firm capacity of 13.0 MW in the first quarter of 2021, and ramped up to 23.9 MW in the second quarter and continued to provide 23.9 MW for the remainder of 2021. The PUC allows rate recovery for energy and firm capacity payments to IPPs under these agreements. Assuming that each of the agreements remains in place for its current term (and as amended) and the minimum availability criteria in the PPAs are met, aggregate minimum fixed capacity charges are expected to be approximately $76 million in 2022, $34 million each in 2023, 2024, 2025 and 2026, and $161 million from 2027 through 2033. In general, the Utilities base their payments under the PPAs upon available capacity and actual energy supplied and they are generally not required to make payments for capacity if the contracted capacity is not available, and payments are reduced, under certain conditions, if available capacity drops below contracted levels. In general, the payment rates for capacity have been predetermined for the terms of the agreements. Energy payments will vary over the terms of the agreements. The Utilities pass on changes in the fuel component of the energy charges to customers through the energy cost recovery clause (ECRC) in their rate schedules. The Utilities do not operate, or participate in the operation of, any of the facilities that provide power under the agreements. Title to the facilities does not pass to Hawaiian Electric or its subsidiaries upon expiration of the agreements, and the agreements do not contain bargain purchase options for the facilities. Purchase power adjustment clause. The PUC has approved purchased power adjustment clauses (PPACs) for the Utilities. Purchased power capacity, operation and maintenance (O&M) and other non-energy costs previously recovered through base rates are now recovered in the PPACs and, subject to approval by the PUC, such costs resulting from new purchased power agreements can be added to the PPACs outside of a rate case. Purchased energy costs continue to be recovered through the ECRC. Kalaeloa Partners, L.P. Under a 1988 PPA, as amended, Hawaiian Electric is committed to purchase 208 MW of firm capacity from Kalaeloa. Hawaiian Electric and Kalaeloa 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. In November 2021, Hawaiian Electric submitted 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 Amended and Restated Amendment No. 4) 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 (Amendment No. 4). 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. Subsequently on November 25, 2021, Hawaiian Electric and AES Hawaii reached agreement in Amended and Restated Amendment No. 4 to power purchase agreement (A&RA No. 4) and Hawaiian Electric filed a Withdrawal of Application regarding Amendment No. 4. A&RA No. 4 resolves AES Hawaii’s claims related to the additional capacity and was filed as an informational filing with the PUC. 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 was scheduled for January and February 2022, and has been rescheduled for March 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. Fuels barging contract . On August 23, 2021, the Utilities entered into a five-year inter-island fuel transportation contract with Sause Bros., Inc., with an estimated annual base rent of $6.2 million, commencing in January 2022 (see Note 8 for lease discussion). On December 23, 2021, the PUC issued an interim D&O approving the inter-island fuels transportation contract and recovery of associated costs on an interim basis. The interim decision is effective until the PUC issues its final D&O in the proceeding. 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 a minimum of $246 million ERP/EAM project-related benefit to be delivered to customers over the system’s 12-year service life. 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 December 31, 2021, the Utilities’ regulatory liability was $8.6 million ($5.4 million for Hawaiian Electric, $1.3 million for Hawaii Electric Light and $1.9 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 AESB report was filed on February 14, 2022 for the period January 1 through December 31, 2021. West Loch PV Project. In November 2019, Hawaiian Electric placed into service a 20-MW (ac) utility-owned and operated renewable and dispatchable solar facility on property owned by the Department of the Navy. PUC orders resulted in a project cost cap of $67 million (including a cap of $4.7 million for the in-kind work to be performed in exchange for use of the Navy property) with capital cost recovery approved under MPIR (See “Performance-based regulation framework” section below for MPIR guidelines and cost recovery discussion.) Project costs incurred as of December 31, 2021 amounted to $58.8 million and generated $14.7 million and $14.0 million in federal and state nonrefundable tax credits, respectively. For book and regulatory purposes, the tax credits are being deferred and amortized, starting in 2020, over 25 years and 10 years for federal and state credits, respectively. As part of the approval of the project, a performance guarantee mechanism was established, which calls for the Utilities to provide energy at target annual energy production levels. Customers are compensated for production shortfalls by the amount of shortfall multiplied by the Equivalent Levelized Energy Price (ELEP) based on the revenue requirements of the actual total cost of the project, but not to exceed 9.56 cents/kilowatt-hours (kWh). Compensation for shortfalls is provided to customers as a credit through the PPAC, while production surpluses are refunded to the Utilities up to the amount of previously issued underproduction credits. In December 2021, the Utilities accrued $0.7 million in estimated underproduction credits to be returned to customers in 2022 due to not meeting the 2021 annual production target. The 2021 underproduction credit is based on an interim ELEP representing total project costs as of August 31, 2021. The credit will be trued up based on a final ELEP based on final project costs. 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 December 31, 2021, representing the probable and reasonably estimable undiscounted cost for remediation of the Site and the Adjacent Parcel based on presently available information; however, final costs of remediation will depend on the cleanup approach implemented. On November 24, 2021, the current landowners of the Site, Misaki’s, Inc., filed a lawsuit against Hawaiian Electric (as alleged successor in interest to Molokai Electric, the prior owner of the Site) in the Circuit Court of the Second Circuit of the State of Hawaii (subsequently removed to the U.S. District Court for the District of Hawaii), alleging that Hawaiian Electric is responsible for remediation of the Site based on the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, section 9601 and the Hawaii Environmental Response Law under Hawaii Revised Statutes Chapter 128D. The lawsuit seeks reimbursement and indemnification of costs to respond to the alleged release of hazardous substances on the Site, a declaratory judgment as to liability for response costs and other unspecified damages. Additionally, there are contractual claims for damages and past rent based on the period when the property was briefly leased back from Misaki’s to Molokai Electric during the transition of ownership. At this time, the Utilities are unable to determine the ultimate outcome of the lawsuit or the amount of any possible loss. The Utilities intend to vigorously defend the action. 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 December 31, 2021, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $10.3 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. Asset retirement obligations . Asset retirement obligations (AROs) represent legal obligations associated with the retirement of certain tangible long-lived assets, are measured as the present value of the projected costs for the future retirement of specific assets and are recognized in the period in which the liability is incurred if a reasonable estimate of fair value can be made. The Utilities’ recognition of AROs have no impact on their earnings. The cost of the AROs is recovered over the life of the asset through depreciation. AROs recognized by the Utilities relate to legal obligations associated with the retirement of plant and equipment, including removal of asbestos and other hazardous materials. The Utilities recorded AROs related to: 1) the removal of retired generating units, certain types of transformers and underground storage tanks; 2) the abandonment of fuel pipelines, underground injection and supply wells; and 3) the removal of equipment and restoration of leased land used in connection with Utility-owned renewable and dispatchable generation facilities. Changes to the ARO liability included in “Other liabilities” on Hawaiian Electric’s balance sheet were as follows: (in thousands) 2021 2020 Balance, January 1 $ 10,692 $ 10,324 Accretion expense 423 405 Liabilities incurred — — Liabilities settled (5) (37) Balance, December 31 $ 11,110 $ 10,692 The Utilities have not recorded AROs for assets that are expected to operate indefinitely or where the Utilities cannot estimate a settlement date (or range of potential settlement dates). As such, ARO liabilities are not recorded for certain asset retirement activities, including various Utilities-owned generating facilities and certain electric transmission, distribution and telecommunications assets resulting from easements over property not owned by the Utilities. Regulatory proceedings . Decoupling . Decoupling is a regulatory model that is intended to provide the Utilities with financial stability and facilitate meeting the State of Hawaii’s goals to transition to a clean energy economy and achieve an aggressive renewable portfolio standard. 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) revenue 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 19, 2021, the PUC modified the procedural schedule. Accordingly, the Utilities filed their preliminary statements of position on February 8, 2022. The final statements of position are due on March 18, 2022, and an evidentiary hearing during the week of April 4, 2022. Revenue 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% of adjusted revenue requirements 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 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 ROAC |
Bank segment (HEI only)
Bank segment (HEI only) | 12 Months Ended |
Dec. 31, 2021 | |
Bank Segment Disclosure [Abstract] | |
Bank segment (HEI only) | Note 4 · Bank segment (HEI only) Selected financial information American Savings Bank, F.S.B. Statements of Income and Comprehensive Income Data Years ended December 31 2021 2020 2019 (in thousands) Interest and dividend income Interest and fees on loans $ 198,802 $ 214,134 $ 233,632 Interest and dividends on investment securities 43,464 30,529 32,922 Total interest and dividend income 242,266 244,663 266,554 Interest expense Interest on deposit liabilities 4,981 10,654 16,830 Interest on other borrowings 59 460 1,610 Total interest expense 5,040 11,114 18,440 Net interest income 237,226 233,549 248,114 Provision for credit losses (25,825) 50,811 23,480 Net interest income after provision for credit losses 263,051 182,738 224,634 Noninterest income Fees from other financial services 21,225 16,447 19,275 Fee income on deposit liabilities 16,663 16,059 20,877 Fee income on other financial products 8,770 6,381 6,507 Bank-owned life insurance 7,318 6,483 7,687 Mortgage banking income 9,305 23,734 4,943 Gain on sale of real estate — — 10,762 Gain on sale of investment securities, net 528 9,275 653 Other income, net 851 (256) 2,074 Total noninterest income 64,660 78,123 72,778 Noninterest expense Compensation and employee benefits 113,970 104,443 103,009 Occupancy 20,584 21,573 21,272 Data processing 17,634 14,769 15,306 Services 10,327 11,121 10,239 Equipment 9,510 9,001 8,760 Office supplies, printing and postage 4,239 4,623 5,512 Marketing 3,870 3,435 4,490 FDIC insurance 3,235 2,342 1,204 Other expense 1 13,783 20,283 15,586 Total noninterest expense 197,152 191,590 185,378 Income before income taxes 130,559 69,271 112,034 Income taxes 29,325 11,688 23,061 Net income 101,234 57,583 88,973 Other comprehensive income (loss), net of taxes (52,728) 23,608 29,406 Comprehensive income $ 48,506 $ 81,191 $ 118,379 1 2021 and 2020 include approximately $0.6 million and $5.1 million of certain direct and incremental COVID-19 related costs, respectively. For 2020, these costs include $2.5 million of compensation expense and $2.0 million of enhanced cleaning and sanitation costs. Reconciliation to amounts per HEI Consolidated Statements of Income*: Years ended December 31 2021 2020 2019 (in thousands) Interest and dividend income $ 242,266 $ 244,663 $ 266,554 Noninterest income 64,660 78,123 72,778 Less: Gain on sale of real estate — — 10,762 Less: Gain on sale of investment securities, net 528 9,275 653 *Revenues-Bank 306,398 313,511 327,917 Total interest expense 5,040 11,114 18,440 Provision for credit losses (25,825) 50,811 23,480 Noninterest expense 197,152 191,590 185,378 Less: Retirement defined benefits expense (credit)—other than service costs (1,828) 1,813 (472) Add: Gain on sale of real estate — — 10,762 *Expenses-Bank 178,195 251,702 217,008 *Operating income-Bank 128,203 61,809 110,909 Add back: Retirement defined benefits expense (credit)—other than service costs (1,828) 1,813 (472) Add back: Gain on sale of investment securities, net 528 9,275 653 Income before income taxes $ 130,559 $ 69,271 $ 112,034 Balance Sheets Data December 31 2021 2020 (in thousands) Assets Cash and due from banks $ 100,051 $ 178,422 Interest-bearing deposits 151,189 114,304 Cash and cash equivalents 251,240 292,726 Investment securities Available-for-sale, at fair value 2,574,618 1,970,417 Held-to-maturity, at amortized cost (fair value of $510,474 and $229,963 at December 31, 2021 and 2020, respectively) 522,270 226,947 Stock in Federal Home Loan Bank, at cost 10,000 8,680 Loans held for investment 5,211,114 5,333,843 Allowance for credit losses (71,130) (101,201) Net loans 5,139,984 5,232,642 Loans held for sale, at lower of cost or fair value 10,404 28,275 Other 590,897 554,656 Goodwill 82,190 82,190 Total assets $ 9,181,603 $ 8,396,533 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 2,976,632 $ 2,598,500 Deposit liabilities–interest-bearing 5,195,580 4,788,457 Other borrowings 88,305 89,670 Other 193,268 183,731 Total liabilities 8,453,785 7,660,358 Commitments and contingencies Common stock 1 1 Additional paid in capital 353,895 351,758 Retained earnings 411,704 369,470 Accumulated other comprehensive income (loss), net of taxes Net unrealized gains (losses) on securities $ (32,037) $ 19,986 Retirement benefit plans (5,745) (37,782) (5,040) 14,946 Total shareholder’s equity 727,818 736,175 Total liabilities and shareholder’s equity $ 9,181,603 $ 8,396,533 December 31 2021 2020 (in thousands) Other assets Bank-owned life insurance $ 177,566 $ 163,265 Premises and equipment, net 202,299 206,134 Accrued interest receivable 20,854 24,616 Mortgage servicing rights 9,950 10,020 Low-income housing investments 110,989 83,435 Other 69,239 67,186 $ 590,897 $ 554,656 Other liabilities Accrued expenses $ 87,905 $ 62,694 Federal and state income taxes payable — 6,582 Cashier’s checks 33,675 38,011 Advance payments by borrowers 9,994 10,207 Other 61,694 66,237 $ 193,268 $ 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. Investment securities. The major components of investment securities were as follows: Gross unrealized losses Gross unrealized Gross unrealized Estimated fair value Less than 12 months 12 months or longer (dollars in thousands) Amortized Number of issues Fair value Amount Number of issues Fair value Amount December 31, 2021 Available-for-sale U.S. Treasury and federal agency obligations $ 89,714 $ 803 $ (427) $ 90,090 4 $ 44,827 $ (427) — $ — $ — Mortgage-backed securities* 2,482,618 6,511 (51,206) 2,437,923 120 1,845,243 (38,321) 18 271,012 (12,885) Corporate bonds 30,625 655 (102) 31,178 1 12,780 (102) — — — Mortgage revenue bonds 15,427 — — 15,427 — — — — — — $ 2,618,384 $ 7,969 $ (51,735) $ 2,574,618 125 $ 1,902,850 $ (38,850) 18 $ 271,012 $ (12,885) Held-to-maturity US Treasury and Federal agency obligations $ 59,871 $ 168 $ (170) $ 59,869 2 $ 39,594 $ (170) — $ — $ — Mortgage-backed securities* 462,399 1,480 (13,274) 450,605 22 290,883 (7,665) 7 106,483 (5,609) $ 522,270 $ 1,648 $ (13,444) $ 510,474 24 $ 330,477 $ (7,835) 7 $ 106,483 $ (5,609) 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 as of December 31, 2021, 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 as of December 31, 2021. U.S. Treasury, federal agency obligations, corporate bonds, and mortgage revenue bonds have contractual terms to maturity. Mortgage-backed securities have contractual terms to maturity, but require periodic payments to reduce principal. In addition, expected maturities will differ from contractual maturities because borrowers have the right to prepay the underlying mortgages. The contractual maturities of investment securities were as follows: Amortized Fair December 31, 2021 Cost value (in thousands) Available-for-sale Due in one year or less $ 15,055 $ 15,298 Due after one year through five years 62,461 63,256 Due after five years through ten years 58,250 58,141 Due after ten years — — 135,766 136,695 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 2,482,618 2,437,923 Total available-for-sale securities $ 2,618,384 $ 2,574,618 Held-to-maturity Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 59,871 59,869 Due after ten years — — 59,871 59,869 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 462,399 450,605 Total held-to-maturity securities $ 522,270 $ 510,474 The proceeds, gross gains and losses from sales of available-for-sale securities were as follows: Years ended December 31 2021 2020 2019 (in thousands) Proceeds $ 197,354 $ 169,157 $ 19,810 Gross gains 975 9,275 653 Gross losses (447) — — Interest income from taxable and non-taxable investment securities were as follows: Years ended December 31 2021 2020 2019 (in thousands) Taxable $ 42,534 $ 29,760 $ 31,848 Non-taxable 930 769 1,074 $ 43,464 $ 30,529 $ 32,922 ASB pledged securities with a market value of approximately $416 million and $353 million as of December 31, 2021 and 2020, respectively, as collateral for public funds and other deposits, mortgage pipeline hedge margin, automated clearinghouse transactions, The Federal Reserve Bank of San Francisco Discount Window and bankruptcy account, and The Federal Home Loan Bank of Des Moines advance line. In addition, ASB pledged securities with a market value of $161 million and $92 million as of December 31, 2021 and 2020, respectively, as collateral for securities sold under agreements to repurchase. Stock in FHLB . As of December 31, 2021 and 2020, ASB’s stock in FHLB was carried at cost ($10.0 million and $8.7 million, respectively) because it can only be redeemed at par and it is a required investment based on measurements of ASB’s capital, assets and borrowing levels. Quarterly and as conditions warrant, ASB reviews its investment in the stock of the FHLB for impairment. ASB evaluated its investment in FHLB stock for credit losses as of December 31, 2021, consistent with its accounting policy. ASB did not recognize any credit losses for 2021, 2020 and 2019 based on its evaluation of the underlying investment. Future deterioration in the FHLB’s financial position and/or negative developments in any of the factors considered in ASB’s impairment evaluation may result in future impairment losses. Loans. The components of loans were summarized as follows: December 31 2021 2020 (in thousands) Real estate: Residential 1-4 family $ 2,299,212 $ 2,144,239 Commercial real estate 1,056,982 983,865 Home equity line of credit 835,663 963,578 Residential land 19,859 15,617 Commercial construction 91,080 121,424 Residential construction 11,138 11,022 Total real estate 4,313,934 4,239,745 Commercial 793,304 936,748 Consumer 113,966 168,733 Total loans 5,221,204 5,345,226 Less: Deferred fees and discounts (10,090) (11,383) Allowance for credit losses (71,130) (101,201) Total loans, net $ 5,139,984 $ 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. ASB services real estate loans for investors (principal balance of $1.5 billion, $1.5 billion and $1.3 billion as of December 31, 2021, 2020 and 2019, respectively), which are not included in the accompanying balance sheets data. ASB reports fees earned for servicing such loans as income when the related mortgage loan payments are collected and charges loan servicing cost to expense as incurred. As of December 31, 2021 and 2020, ASB had pledged loans with an amortized cost of approximately $2.8 billion and $3.0 billion, respectively, as collateral to secure advances from the FHLB. As of December 31, 2021 and 2020, the aggregate amount of loans to directors and executive officers of ASB and its affiliates and any related interests (as defined in Federal Reserve Board (FRB) Regulation O) of such individuals, was $13.1 million and $13.2 million, respectively. As of December 31, 2021 and 2020, there was a loan to a related interest of a director of ASB for $10.0 million. The loan was made at ASB’s normal credit terms. Allowance for credit losses. As discussed in Note 1, ASB must maintain an allowance for credit losses that is adequate to absorb estimated expected credit losses associated with its loan portfolio. The allowance for credit losses (balances and changes) and financing receivables by portfolio segment were as follows: (in thousands) Residential 1-4 family Commercial Home equity Residential land Commercial construction Residential construction Commercial Consumer Total December 31, 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) — — — (1,561) (8,027) (9,700) Recoveries 92 — 113 61 — — 1,468 4,320 6,054 Net (charge-offs) recoveries 25 — 68 61 — — (93) (3,707) (3,646) Provision 1,920 (10,911) (1,224) (24) (1,963) 7 (9,571) (4,659) (26,425) Ending balance $ 6,545 $ 24,696 $ 5,657 $ 646 $ 2,186 $ 18 $ 15,798 $ 15,584 $ 71,130 Average loans outstanding $ 2,155,322 $ 1,046,276 $ 885,759 $ 18,227 $ 111,711 $ 11,361 $ 856,226 $ 135,609 $ 5,220,491 Net charge-offs (recoveries) to average loans — % — % (0.01 %) (0.33 %) — % — % 0.01 % 2.73 % 0.07 % December 31, 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) — (77) (351) — — (5,819) (19,900) (26,154) Recoveries 394 — 63 38 — — 872 3,381 4,748 Net (charge-offs) recoveries 387 — (14) (313) — — (4,947) (16,519) (21,406) Provision (317) 20,346 446 537 1,763 (6) 19,242 7,800 49,811 Ending balance $ 4,600 $ 35,607 $ 6,813 $ 609 $ 4,149 $ 11 $ 25,462 $ 23,950 $ 101,201 Average loans outstanding $ 2,148,848 $ 861,096 $ 1,060,444 $ 13,799 $ 93,740 $ 10,703 $ 935,663 $ 215,994 $ 5,340,287 Net charge-offs (recoveries) to average loans (0.02) % — % — % 2.27 % — % — % 0.53 % 7.65 % 0.40 % December 31, 2019 Allowance for credit losses: Beginning balance $ 1,976 $ 14,505 $ 6,371 $ 479 $ 2,790 $ 4 $ 9,225 $ 16,769 $ 52,119 Charge-offs (26) — (144) (4) — — (6,811) (21,677) (28,662) Recoveries 854 — 17 229 — — 2,351 2,967 6,418 Net (charge-offs) recoveries 828 — (127) 225 — — (4,460) (18,710) (22,244) Provision (424) 548 678 (255) (693) (1) 5,480 18,147 23,480 Ending balance $ 2,380 $ 15,053 $ 6,922 $ 449 $ 2,097 $ 3 $ 10,245 $ 16,206 $ 53,355 Average loans outstanding $ 2,164,759 $ 781,531 $ 1,043,479 $ 14,065 $ 81,937 $ 10,513 $ 620,206 $ 270,340 $ 4,986,830 Net charge-offs (recoveries) to average loans (0.04) % — % 0.01 % (1.60 %) — % — % 0.72 % 6.92 % 0.45 % Ending balance: individually evaluated for impairment $ 898 $ 2 $ 322 $ — $ — $ — $ 1,015 $ 454 $ 2,691 Ending balance: collectively evaluated for impairment $ 1,482 $ 15,051 $ 6,600 $ 449 $ 2,097 $ 3 $ 9,230 $ 15,752 $ 50,664 Financing Receivables: Ending balance $ 2,178,135 $ 824,830 $ 1,092,125 $ 14,704 $ 70,605 $ 11,670 $ 670,674 $ 257,921 $ 5,120,664 Ending balance: individually evaluated for impairment $ 15,600 $ 1,048 $ 12,073 $ 3,091 $ — $ — $ 8,418 $ 507 $ 40,737 Ending balance: collectively evaluated for impairment $ 2,162,535 $ 823,782 $ 1,080,052 $ 11,613 $ 70,605 $ 11,670 $ 662,256 $ 257,414 $ 5,079,927 Allowance for loan commitments. The allowance for loan commitments by portfolio segment were as follows: (in thousands) Home equity Commercial construction Commercial loans Total Year ended December 31, 2021 Allowance for loan commitments: Beginning balance $ 300 $ 3,000 $ 1,000 $ 4,300 Provision 100 700 (200) 600 Ending balance $ 400 $ 3,700 $ 800 $ 4,900 Year ended December 31, 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 — 324 676 1,000 Ending balance $ 300 $ 3,000 $ 1,000 $ 4,300 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 loans Converted to term loans Total December 31, 2021 Residential 1-4 family Current $ 791,758 $ 461,683 $ 133,345 $ 64,421 $ 124,994 $ 712,452 $ — $ — $ 2,288,653 30-59 days past due — — — 809 — 2,210 — — 3,019 60-89 days past due — — — — — 1,468 — — 1,468 Greater than 89 days past due — — 2,987 — — 3,085 — — 6,072 791,758 461,683 136,332 65,230 124,994 719,215 — — 2,299,212 Home equity line of credit Current — — — — — — 794,518 39,116 833,634 30-59 days past due — — — — — — 296 313 609 60-89 days past due — — — — — — 16 70 86 Greater than 89 days past due — — — — — — 838 496 1,334 — — — — — — 795,668 39,995 835,663 Residential land Current 10,572 6,794 1,116 532 267 181 — — 19,462 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — 397 — — 397 10,572 6,794 1,116 532 267 578 — — 19,859 Residential construction Current 7,856 3,019 — — 263 — — — 11,138 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 7,856 3,019 — — 263 — — — 11,138 Consumer Current 37,563 15,488 29,383 10,897 302 238 12,740 4,157 110,768 30-59 days past due 202 181 517 234 15 — 156 70 1,375 60-89 days past due 59 127 392 183 8 — 7 106 882 Greater than 89 days past due 14 93 387 192 27 — 141 87 941 37,838 15,889 30,679 11,506 352 238 13,044 4,420 113,966 Commercial real estate Pass 173,794 275,242 49,317 56,490 33,581 259,583 11,602 — 859,609 Special Mention 19,600 3,529 42,935 30,870 20,788 32,824 — — 150,546 Substandard — 684 13,936 1,859 1,805 28,543 — — 46,827 Doubtful — — — — — — — — — 193,394 279,455 106,188 89,219 56,174 320,950 11,602 — 1,056,982 Commercial construction Pass 17,140 43,261 — 11,342 — — 19,337 — 91,080 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 17,140 43,261 — 11,342 — — 19,337 — 91,080 Commercial Pass 266,087 96,963 79,329 56,497 31,019 66,570 96,673 15,510 708,648 Special Mention 40 27,336 10,071 202 439 8,966 15,303 18 62,375 Substandard 427 184 3,737 1,777 4,457 2,961 7,083 1,655 22,281 Doubtful — — — — — — — — — 266,554 124,483 93,137 58,476 35,915 78,497 119,059 17,183 793,304 Total loans $ 1,325,112 $ 934,584 $ 367,452 $ 236,305 $ 217,965 $ 1,119,478 $ 958,710 $ 61,598 $ 5,221,204 Term Loans by Origination Year Revolving Loans (in thousands) 2020 2019 2018 2017 2016 Prior Revolving loans 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 2021 in the commercial, home equity line of credit and consumer portfolios were $1.8 million, $16.0 million and $2.7 million, respectively. The credit risk profile based on payment activity for loans was as follows: (in thousands) 30-59 60-89 Greater Total Current Total Recorded December 31, 2021 Real estate: Residential 1-4 family $ 3,019 $ 1,468 $ 6,072 $ 10,559 $ 2,288,653 $ 2,299,212 $ — Commercial real estate — — — — 1,056,982 1,056,982 — Home equity line of credit 609 86 1,334 2,029 833,634 835,663 — Residential land — — 397 397 19,462 19,859 — Commercial construction — — — — 91,080 91,080 — Residential construction — — — — 11,138 11,138 — Commercial 700 313 48 1,061 792,243 793,304 — Consumer 1,375 882 941 3,198 110,768 113,966 — Total loans $ 5,703 $ 2,749 $ 8,792 $ 17,244 $ 5,203,960 $ 5,221,204 $ — 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: December 31, 2021 December 31, 2020 (in thousands) With a Related Without a Total With a Related Without a Total Real estate: Residential 1-4 family $ 16,045 $ 3,703 $ 19,748 $ 8,991 $ 2,835 $ 11,826 Commercial real estate 14,104 1,221 15,325 15,847 2,875 18,722 Home equity line of credit 4,227 1,294 5,521 5,791 1,567 7,358 Residential land 97 300 397 108 300 408 Commercial construction — — — — — — Residential construction — — — — — — Commercial 1,446 692 2,138 1,819 3,328 5,147 Consumer 1,845 — 1,845 3,935 — 3,935 Total $ 37,764 $ 7,210 $ 44,974 $ 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) December 31, 2021 December 31, 2020 Real estate: Residential 1-4 family $ 6,949 $ 7,932 Commercial real estate 3,055 3,281 Home equity line of credit 6,021 8,148 Residential land 980 1,555 Commercial construction — — Residential construction — — Commercial 7,860 6,108 Consumer 52 54 Total troubled debt restructured loans accruing interest $ 24,917 $ 27,078 ASB did not recognize interest on nonaccrual loans for 2021, 2020 and 2019. Troubled debt restructurings. A loan modification is deemed to be a TDR when the borrower is determined to be experiencing financial difficulties and ASB grants a concession it would not otherwise consider. When a borrower experiencing financial difficulty fails to make a required payment on a loan or is in imminent default, ASB takes a number of steps to improve the collectability of the loan and maximize the likelihood of full repayment. At times, ASB may modify or restructure a loan to help a distressed borrower improve its financial position to eventually be able to fully repay the loan, provided the borrower has demonstrated both the willingness and the ability to fulfill the modified terms. TDR loans are considered an alternative to foreclosure or liquidation with the goal of minimizing losses to ASB and maximizing recovery. ASB may consider various types of concessions in granting a TDR including maturity date extensions, extended amortization of principal, temporary deferral of principal payments, and temporary interest rate reductions. ASB rarely grants principal forgiveness in its TDR modifications. Residential loan modifications generally involve interest rate reduction, extending the amortization period, or capitalizing certain delinquent amounts owed not to exceed the original loan balance. Land loans at origination are typically structured as a three-year term, interest-only monthly payment with a balloon payment due at maturity. Land loan TDR modifications typically involve extending the maturity date up to three years and converting the payments from interest-only to principal and interest monthly, at the same or higher interest rate. Commercial loan modifications generally involve extensions of maturity dates, extending the interest only or amortization period, and temporary deferral or reduction of principal payments. ASB generally does not reduce the interest rate on commercial loan TDR modifications. Occasionally, additional collateral and/or guaranties are obtained. 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 2021, 2020, and 2019 were as follows: (dollars in thousands) Number of contracts Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Year ended December 31, 2021 Real estate: Residential 1-4 family 14 $ 8,379 $ 442 Commercial real estate — — — Home equity line of credit — — — Residential land 3 799 38 Commercial construction — — — Residential construction — — — Commercial 7 2,931 205 Consumer — — — 24 $ 12,109 $ 685 Year ended December 31, 2020 Real estate: Residential 1-4 family 1 $ 144 $ 6 Commercial real estate 6 20,714 4,439 Home equity line of credit 3 85 11 Residential land 4 668 54 Commercial construction — — — Residential construction — — — Commercial 54 5,380 869 Consumer — — — 68 $ 26,991 $ 5,379 Year ended December 31, 2019 Real estate: Residential 1-4 family 11 $ 1,770 $ 190 Commercial real estate — — — Home equity line of credit 3 442 73 Residential land 3 1,086 — Commercial construction — — — Residential construction — — — Commercial 8 5,523 417 Consumer — — — 25 $ 8,821 $ 680 1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included. Loans modified in TDRs that experienced a payment default of 90 days or more in 2021, 2020, and 2019 and for which the payment default occurred within one year of the modification, were as follows: Years ended December 31 2021 2020 2019 (dollars in thousands) Number of Recorded Number of Recorded Number of Recorded Troubled debt restructurings that subsequently defaulted Real estate: Residential 1-4 family 1 $ 474 — $ — — $ — Commercial real estate — — — — — — Home equity line of credit — — — — — — Residential land — — — — — — Commercial construction — — — — — — Residential construction — — — — — — Commercial 1 9 — — — — Consumer — — — — — — 2 $ 483 — $ — — $ — 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 December 31, 2021 and 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 cu |
Short-term borrowings
Short-term borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Debt [Abstract] | |
Short-term borrowings | Note 5 · Short-term borrowings Commercial paper and bank term loan. As of December 31, 2021 and 2020, HEI had $54 million and $65 million of commercial paper outstanding, respectively. The weighted-average interest rate of HEI’s outstanding commercial paper, as of December 31, 2021 and 2020 was 0.55% and 0.75%, respectively. On April 20, 2020, HEI closed on a $65 million 364-day term loan (HEI term loan). The HEI term loan provisions allowed prepayments without penalty. On December 30, 2020, HEI paid down $50 million of the term loan using $50 million of proceeds from a private placement drawn on December 29, 2020, and on January 29, 2021, HEI paid off the remaining HEI term loan balance of $15 million. At both December 31, 2021 and 2020, Hawaiian Electric had no commercial paper outstanding. Hawaiian Electric entered into a 364-day, $50 million term loan credit agreement, drawing the full $50 million on May 19, 2020. On January 15, 2021, Hawaiian Electric paid off the $50 million term loan in conjunction with the terms of the loan credit agreement. The weighted-average interest rate of Hawaiian Electric’s outstanding commercial paper and bank term loan as of December 31, 2020 was 1.9%. As of December 31, 2020, HEI had three letters of credit outstanding in the aggregate amount of $6 million, on behalf of Hamakua Energy. As of December 31, 2021, HEI had five letters of credit outstanding in the aggregate amount of $10 million on behalf of Mauo and Hamakua Energy. Credit agreements. On May 14, 2021, HEI and Hawaiian Electric each entered into a separate agreement with a syndicate of nine financial institutions (the HEI Facility and Hawaiian Electric Facility, respectively, and together, the Credit 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. On February 18, 2022, the PUC approved Hawaiian Electric’s request to extend the term of the $200 million Hawaiian Electric Facility to May 14, 2026. In addition to extending the term, Hawaiian Electric also received 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 December 31, 2021 and 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 Credit Facilities, draws generally bear interest, based on each company’s respective current long-term credit ratings, at the “Adjusted LIBO Rate,” as defined in the Credit 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, at the rate of 20.0 and 17.5 basis points for HEI and Hawaiian Electric, respectively. The Credit 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 Credit 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 S&P Global Ratings (S&P). The Credit Facilities do not contain clauses that would affect access to the Credit Facilities by reason of a ratings downgrade, nor do they have broad “material adverse change” clauses. In addition, the Credit 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 Credit 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 expired and was not renewed. |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term debt | Note 6 · Long-term debt December 31 2021 2020 (dollars in thousands) Long-term debt of Utilities, net of unamortized debt issuance costs 1 $ 1,676,402 $ 1,561,302 HEI 5.67% senior notes, due 2021 — 50,000 HEI 2.99% term loan, due 2022 150,000 150,000 HEI 3.99% senior notes, due 2023 50,000 50,000 HEI 4.58% senior notes, due 2025 50,000 50,000 HEI 4.72% senior notes, due 2028 100,000 100,000 HEI 2.82% senior notes, due 2028 24,000 — HEI 2.48% senior notes, due 2028 30,000 — HEI 2.98% senior notes, due 2030 50,000 50,000 HEI 3.15% senior notes, due 2031 51,000 — HEI 2.78% senior notes, due 2031 25,000 — HEI 3.74% senior notes, due 2051 20,000 — Hamakua Energy 4.02% non-recourse notes, due 2030 2 52,166 56,030 Mauo LIBOR + 1.375% loan, due 2023 3 21,702 41,046 Mauo 4.90% non-recourse term loan, due 2034 2 12,686 — Kaʻieʻie Waho 2.79% non-recourse loan, due 2031 2 12,145 13,000 Less unamortized debt issuance costs (3,164) (2,249) $ 2,321,937 $ 2,119,129 1 See components of “Total long-term debt” and unamortized debt issuance costs in Hawaiian Electric and subsidiaries’ Consolidated Statements of Capitalization. 2 Secured by real and personal property of the respective entity. 3 In December 2021, the loan was amended to allow advances through October 5, 2022, in the maximum aggregate principal amount of up to $50.5 million and extended the required paydown of the loan balance to the lesser of (i) $7 million or (ii) the amount of state renewable tax credits not received by October 5, 2022. As of December 31, 2021, the aggregate principal payments required on the Company’s long-term debt for 2022 through 2026 are $223 million in 2022, $163 million in 2023, $6 million in 2024, $104 million in 2025 and $131 million in 2026. As of December 31, 2021, the aggregate payments of principal required on the Utilities’ long-term debt for 2022 through 2026 are $52 million in 2022, $100 million in 2023, nil in 2024, $47 million in 2025 and $125 million in 2026. The HEI term loans and senior notes contain customary representation and warranties, affirmative and negative covenants and events of default (the occurrence of which may result in some or all of the notes then outstanding becoming immediately due and payable). The HEI term loans and senior notes also contain provisions requiring the maintenance by HEI of certain financial ratios generally consistent with those in HEI’s existing, amended revolving unsecured credit agreement. Upon a change of control or certain dispositions of assets (as defined in the note purchase agreements of the senior notes), HEI is required to offer to prepay the senior notes. The Utilities’ senior notes contain customary representations and warranties, affirmative and negative covenants, and events of default (the occurrence of which may result in some or all of the notes of each and all of the utilities then outstanding becoming immediately due and payable) and provisions requiring the maintenance by Hawaiian Electric, and each of Hawaii Electric Light and Maui Electric, of certain financial ratios generally consistent with those in Hawaiian Electric’s existing, amended revolving unsecured credit agreement. Changes in long-term debt. HEI . 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. On December 29, 2021, HEI drew $75 million, and as defined in the note purchase agreement, at its option, HEI may draw the remaining $50 million of notes on a delayed basis. The following table displays the draw date for the $75 million draw and the required draw date of the remaining $50 million of HEI notes to be issued. 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 The $75 million in proceeds were primarily used to invest in the Utilities’ equity to support its capital expenditure program and maintain a Utilities’ equity capitalization ratio of approximately 58%. The $50 million to be drawn in 2022 is expected to be used to refinance a portion of $150 million of maturing debt in November 2022. 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 non-recourse term loan . |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders' equity | Note 7 · Shareholders’ equity Reserved shares. As of December 31, 2021, HEI had reserved a total of 16.4 million shares of common stock for future issuance under the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP), the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP), the ASB 401(k) Plan, the HEI 2011 Nonemployee Director Stock Plan, and the 2010 Equity and Incentive Plan, as amended. Accumulated other comprehensive income/(loss). Changes in the balances of each component of 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, 2018 $ (24,423) $ (436) $ (25,751) $ (50,610) $ 99 Current period other comprehensive income (loss) and reclassifications, net of taxes 26,904 (1,177) 4,844 30,571 (1,378) Balance, December 31, 2019 2,481 (1,613) (20,907) (20,039) (1,279) Current period other comprehensive income (loss) and reclassifications, net of taxes 17,505 (1,750) 3,020 18,775 (1,640) Balance, December 31, 2020 19,986 (3,363) (17,887) (1,264) (2,919) Current period other comprehensive income (loss) and reclassifications, net of taxes (52,023) (275) 1,029 (51,269) (361) Balance, December 31, 2021 $ (32,037) $ (3,638) $ (16,858) $ (52,533) $ (3,280) Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Affected line item in the Statement of Years ended December 31 2021 2020 2019 (in thousands) HEI consolidated Net realized gains on securities included in net income $ (387) $ (1,638) $ (478) Gain on sale of investment securities, net Net realized losses on derivatives qualifying as cash flow hedges 37 — — Interest expense Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 19,253 23,689 10,107 See Note 10 for additional details Impact of D&Os of the PUC included in regulatory assets (171,345) 39,860 (16,177) See Note 10 for additional details Total reclassifications $ (152,442) $ 61,911 $ (6,548) Hawaiian Electric consolidated Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost $ 19,461 $ 21,550 $ 9,550 See Note 10 for additional details Impact of D&Os of the PUC included in regulatory assets (171,345) 39,860 (16,177) See Note 10 for additional details Total reclassifications $ (151,884) $ 61,410 $ (6,627) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 8 · Leases The Company leases certain real estate and equipment for various terms under long -term operating lease agreements. The agreements expire at various dates through 2054 and provide for renewal options up to 10 years. The periods associated with the renewal options are excluded for the purpose of determining the lease term unless the exercise of the renewal option is reasonably certain. In the normal course of business, it is expected that many of these agreements will be replaced by similar agreements. Certain real estate leases require the Company to pay for operating expenses such as common area maintenance, real estate taxes and insurance, which are recognized as variable lease expense when incurred and are not included in the measurement of the lease liability. The Company elected the short-term lease recognition exemption for all of its leases that qualify, and accordingly, does not recognize lease liabilities and ROU assets for all leases that have lease terms that are 12 months or less. The amounts related to short-term leases are not material. The Company elected the practical expedient to not separate lease and non-lease components for its real estate and equipment and fossil fuel and renewable energy PPAs . Additionally, the Utilities contract with independent power producers to supply energy under long-term power purchase agreements. Certain PPAs are treated as operating leases under the lease standard because the Company elected the practical expedient package under which prior conclusions about lease identification were not reassessed. The fixed capacity payments under the PPAs are included in the lease liability, while the variable lease payments (e.g., payments based on kWh) are excluded from the lease liability. Several as-available PPAs have variable-only payment terms based on production. For PPAs with no minimum lease payments, the Utilities do not recognize any lease liabilities or ROU assets, and the related costs are reported as variable lease costs. In the first quarter of 2021, PGV returned to service with firm capacity of 13 MW and ramped up to 23.9 MW in the second quarter of 2021. Hawaii Electric Light is required to make fixed capacity payments based on 23.9 MW. As of December 31, 2021, Hawaii Electric Light has a total of $21 million in lease liability with a corresponding ROU asset for the PGV PPA . The Utilities’ lease payments for each operating lease agreement were discounted using its estimated unsecured borrowing rates for the appropriate term, reduced for the estimated impact of collateral, which is a reduction of approximately 25 basis points. ASB’s lease payments for each operating lease agreement were discounted using Federal Home Loan Bank of Des Moines (FHLB) fixed rate advance rates, which are collateralized, for the appropriate term. The FHLB is ASB’s primary wholesale funding source and can provide collateralized borrowing rates for various terms starting at overnight borrowings to 30-year borrowing terms. In August 2019, Hawaiian Electric entered into a lease agreement for a total office space of approximately 195,000 square feet in downtown Honolulu to lower costs and bring together office workers currently in separate leased buildings. The lease consists of two different phases with commencement dates of January 2020 and January 2021, respectively, and is an operating lease for a term of 12 years with various options to extend up to 10 years. Annual base rent expense for each phase is approximately $1.9 million and $1.7 million, respectively, and the operating lease liability recorded upon commencement of each phase was $21 million and $19 million, respectively. In addition to the annual base rent payments that are included in the lease liability, there are additional payments for operating expenses, which are recognized as variable lease cost when incurred. These payments are related to operating expenses, such as common area maintenance, various taxes and insurance. Under the terms of the lease, Hawaiian Electric is entitled to receive up to $5.0 million and $4.6 million in tenant incentives for various office improvements for each phase, respectively. The amounts were included as a reduction to the initial measurement of the ROU asset on each respective commencement date, and will be subsequently adjusted if the actual reimbursements are different from the initial amounts previously recognized. As of December 31, 2021 and 2020, total amount of office improvements for both phases were $5.7 million and $2.6 million, respectively. In December 2020, Hawaiian Electric entered into an agreement with an unrelated party to sublease out approximately 64,000 square feet of the downtown Honolulu office space commencing in January 2021. The sublease is an operating lease for six and a half years with an option to extend the term for an additional two years. Estimated base rent revenue is approximately $8.3 million for the entire lease term. In addition to the base rent, Hawaiian Electric will also collect from the sublessee its proportionate share of all operating expenses, utilities, and taxes, which will be recognized as an additional rent revenue. In August 2021, the Utilities entered into an agreement with an unrelated party for exclusive use of a barge and tug to transport fuels between islands, commencing in January 2022. The contract is an operating lease with a term of five years with an option to extend the term for an additional five years. Annual base rent expense is approximately $6.2 million and the operating lease liability recorded upon commencement was $32 million. In addition to the annual base payment, there are additional payments for operating expenses, such as inspection expense, wharfage and pipeline tolls, which are recognized as variable lease cost when incurred. Amounts related to the Company’s total lease cost and cash flows arising from lease transactions are as follows: HEI consolidated Hawaiian Electric consolidated Year ended December 31, 2021 Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total (dollars in thousands) Operating lease cost $ 14,184 $ 66,070 $ 80,254 $ 8,578 $ 66,070 $ 74,648 Variable lease cost 14,360 257,472 271,832 11,586 257,472 269,058 Sublease income (2,515) — (2,515) (2,515) — (2,515) Total lease cost $ 26,029 $ 323,542 $ 349,571 $ 17,649 $ 323,542 $ 341,191 Other information Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases $ 11,239 $ 62,136 $ 73,375 $ 6,168 $ 62,136 $ 68,304 Weighted-average remaining lease term—operating leases (in years) 9.1 2.5 6.1 10.0 2.5 5.9 Weighted-average discount rate—operating leases 2.84 % 3.63 % 3.18 % 2.98 % 3.63 % 3.31 % HEI consolidated Hawaiian Electric consolidated Year ended December 31, 2020 Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total (dollars in thousands) Operating lease cost $ 11,201 $ 63,319 $ 74,520 $ 6,022 $ 63,319 $ 69,341 Variable lease cost 12,765 217,173 229,938 9,842 217,173 227,015 Total lease cost $ 23,966 $ 280,492 $ 304,458 $ 15,864 $ 280,492 $ 296,356 Other information Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases $ 10,783 $ 60,801 $ 71,584 $ 6,223 $ 60,801 $ 67,024 Weighted-average remaining lease term—operating leases (in years) 8.9 1.8 4.4 10.1 1.8 3.8 Weighted-average discount rate—operating leases 2.87 % 4.08 % 3.61 % 3.20 % 4.08 % 3.84 % The following table summarizes the maturity of our operating lease liabilities as of December 31, 2021: HEI consolidated Hawaiian Electric consolidated (in millions) Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total 2022 $ 11 $ 46 $ 57 $ 6 $ 46 $ 52 2023 13 4 17 8 4 12 2024 11 4 15 7 4 11 2025 7 4 11 5 4 9 2026 7 3 10 5 3 8 Thereafter 36 4 40 30 4 34 Total lease payments 85 65 150 61 65 126 Less: Imputed interest (11) (2) (13) (9) (2) (11) Total present value of lease payments 1 $ 74 $ 63 $ 137 $ 52 $ 63 $ 115 |
Leases | Note 8 · Leases The Company leases certain real estate and equipment for various terms under long -term operating lease agreements. The agreements expire at various dates through 2054 and provide for renewal options up to 10 years. The periods associated with the renewal options are excluded for the purpose of determining the lease term unless the exercise of the renewal option is reasonably certain. In the normal course of business, it is expected that many of these agreements will be replaced by similar agreements. Certain real estate leases require the Company to pay for operating expenses such as common area maintenance, real estate taxes and insurance, which are recognized as variable lease expense when incurred and are not included in the measurement of the lease liability. The Company elected the short-term lease recognition exemption for all of its leases that qualify, and accordingly, does not recognize lease liabilities and ROU assets for all leases that have lease terms that are 12 months or less. The amounts related to short-term leases are not material. The Company elected the practical expedient to not separate lease and non-lease components for its real estate and equipment and fossil fuel and renewable energy PPAs . Additionally, the Utilities contract with independent power producers to supply energy under long-term power purchase agreements. Certain PPAs are treated as operating leases under the lease standard because the Company elected the practical expedient package under which prior conclusions about lease identification were not reassessed. The fixed capacity payments under the PPAs are included in the lease liability, while the variable lease payments (e.g., payments based on kWh) are excluded from the lease liability. Several as-available PPAs have variable-only payment terms based on production. For PPAs with no minimum lease payments, the Utilities do not recognize any lease liabilities or ROU assets, and the related costs are reported as variable lease costs. In the first quarter of 2021, PGV returned to service with firm capacity of 13 MW and ramped up to 23.9 MW in the second quarter of 2021. Hawaii Electric Light is required to make fixed capacity payments based on 23.9 MW. As of December 31, 2021, Hawaii Electric Light has a total of $21 million in lease liability with a corresponding ROU asset for the PGV PPA . The Utilities’ lease payments for each operating lease agreement were discounted using its estimated unsecured borrowing rates for the appropriate term, reduced for the estimated impact of collateral, which is a reduction of approximately 25 basis points. ASB’s lease payments for each operating lease agreement were discounted using Federal Home Loan Bank of Des Moines (FHLB) fixed rate advance rates, which are collateralized, for the appropriate term. The FHLB is ASB’s primary wholesale funding source and can provide collateralized borrowing rates for various terms starting at overnight borrowings to 30-year borrowing terms. In August 2019, Hawaiian Electric entered into a lease agreement for a total office space of approximately 195,000 square feet in downtown Honolulu to lower costs and bring together office workers currently in separate leased buildings. The lease consists of two different phases with commencement dates of January 2020 and January 2021, respectively, and is an operating lease for a term of 12 years with various options to extend up to 10 years. Annual base rent expense for each phase is approximately $1.9 million and $1.7 million, respectively, and the operating lease liability recorded upon commencement of each phase was $21 million and $19 million, respectively. In addition to the annual base rent payments that are included in the lease liability, there are additional payments for operating expenses, which are recognized as variable lease cost when incurred. These payments are related to operating expenses, such as common area maintenance, various taxes and insurance. Under the terms of the lease, Hawaiian Electric is entitled to receive up to $5.0 million and $4.6 million in tenant incentives for various office improvements for each phase, respectively. The amounts were included as a reduction to the initial measurement of the ROU asset on each respective commencement date, and will be subsequently adjusted if the actual reimbursements are different from the initial amounts previously recognized. As of December 31, 2021 and 2020, total amount of office improvements for both phases were $5.7 million and $2.6 million, respectively. In December 2020, Hawaiian Electric entered into an agreement with an unrelated party to sublease out approximately 64,000 square feet of the downtown Honolulu office space commencing in January 2021. The sublease is an operating lease for six and a half years with an option to extend the term for an additional two years. Estimated base rent revenue is approximately $8.3 million for the entire lease term. In addition to the base rent, Hawaiian Electric will also collect from the sublessee its proportionate share of all operating expenses, utilities, and taxes, which will be recognized as an additional rent revenue. In August 2021, the Utilities entered into an agreement with an unrelated party for exclusive use of a barge and tug to transport fuels between islands, commencing in January 2022. The contract is an operating lease with a term of five years with an option to extend the term for an additional five years. Annual base rent expense is approximately $6.2 million and the operating lease liability recorded upon commencement was $32 million. In addition to the annual base payment, there are additional payments for operating expenses, such as inspection expense, wharfage and pipeline tolls, which are recognized as variable lease cost when incurred. Amounts related to the Company’s total lease cost and cash flows arising from lease transactions are as follows: HEI consolidated Hawaiian Electric consolidated Year ended December 31, 2021 Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total (dollars in thousands) Operating lease cost $ 14,184 $ 66,070 $ 80,254 $ 8,578 $ 66,070 $ 74,648 Variable lease cost 14,360 257,472 271,832 11,586 257,472 269,058 Sublease income (2,515) — (2,515) (2,515) — (2,515) Total lease cost $ 26,029 $ 323,542 $ 349,571 $ 17,649 $ 323,542 $ 341,191 Other information Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases $ 11,239 $ 62,136 $ 73,375 $ 6,168 $ 62,136 $ 68,304 Weighted-average remaining lease term—operating leases (in years) 9.1 2.5 6.1 10.0 2.5 5.9 Weighted-average discount rate—operating leases 2.84 % 3.63 % 3.18 % 2.98 % 3.63 % 3.31 % HEI consolidated Hawaiian Electric consolidated Year ended December 31, 2020 Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total (dollars in thousands) Operating lease cost $ 11,201 $ 63,319 $ 74,520 $ 6,022 $ 63,319 $ 69,341 Variable lease cost 12,765 217,173 229,938 9,842 217,173 227,015 Total lease cost $ 23,966 $ 280,492 $ 304,458 $ 15,864 $ 280,492 $ 296,356 Other information Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases $ 10,783 $ 60,801 $ 71,584 $ 6,223 $ 60,801 $ 67,024 Weighted-average remaining lease term—operating leases (in years) 8.9 1.8 4.4 10.1 1.8 3.8 Weighted-average discount rate—operating leases 2.87 % 4.08 % 3.61 % 3.20 % 4.08 % 3.84 % The following table summarizes the maturity of our operating lease liabilities as of December 31, 2021: HEI consolidated Hawaiian Electric consolidated (in millions) Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total 2022 $ 11 $ 46 $ 57 $ 6 $ 46 $ 52 2023 13 4 17 8 4 12 2024 11 4 15 7 4 11 2025 7 4 11 5 4 9 2026 7 3 10 5 3 8 Thereafter 36 4 40 30 4 34 Total lease payments 85 65 150 61 65 126 Less: Imputed interest (11) (2) (13) (9) (2) (11) Total present value of lease payments 1 $ 74 $ 63 $ 137 $ 52 $ 63 $ 115 |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Note 9 · Revenues Revenue from contracts with customers. The revenues subject to Topic 606 include the Utilities’ electric energy sales revenue and the ASB’s transaction fees, as further described below. Electric Utilities . Electric energy sales . Electric energy sales represent revenues from the generation and transmission of electricity to customers under tariffs approved by the PUC. Transaction pricing for electricity is determined and approved by the PUC for each rate class and includes revenues from the base electric charges, which are composed of (1) the customer, demand, energy, and minimum charges, and (2) the power factor, service voltage, and other adjustments as provided in each rate and rate rider schedule. The Utilities satisfy performance obligations over time, i.e., the Utilities generate and transfer control of the electricity over time as the customer simultaneously receives and consumes the benefits provided by the Utilities’ performance. Payments from customers are generally due within 30 days from the end of the billing period. As electric bills to customers reflect the amount that corresponds directly with the value of the Utilities’ performance to date, the Utilities have elected to use the right to invoice practical expedient, which entitles them to recognize revenue in the amount they have the right to invoice. The Utilities’ revenues include amounts for recovery of various Hawaii state revenue taxes. Revenue taxes are generally recorded as an expense in the year the related revenues are recognized. For 2021, 2020 and 2019, the Utilities’ revenues include recovery of revenue taxes of approximately $226 million, $202 million and $226 million, respectively, which amounts are in “Taxes, other than income taxes” expense. However, the Utilities pay revenue taxes to the taxing authorities based on (1) the prior year’s billed revenues (in the case of public service company taxes and PUC fees) in the current year or (2) the current year’s cash collections from electric sales (in the case of franchise taxes) after year end. As of December 31, 2021 and 2020, the Utilities had recorded $128 million and $111 million, respectively, in “Taxes accrued, including revenue taxes” on the Utilities’ consolidated balance sheet for amounts previously collected from customers or accrued for public service company taxes and PUC fees, net of amounts paid to the taxing authorities. Such amounts will be used to pay public service company taxes and PUC fees owed for the following year. Bank . Bank fees. Bank fees are primarily transaction-based and are recognized when the transaction has occurred and the performance obligation satisfied. From time to time, customers will request a fee waiver and ASB may grant reversals of fees. Revenues are not recorded for the estimated amount of fee reversals for each period. Fees from other financial services - These fees primarily include debit card interchange income and fees, automated teller machine fees, credit card interchange income and fees, check ordering fees, wire fees, safe deposit rental fees, corporate/business fees, merchant income, online banking fees and international banking fees. Amounts paid to third parties for payment network expenses are included in this financial statement caption in ASB’s Statements of Income and Comprehensive Income Data (in Revenues—Bank financial statement caption of HEI’s Consolidated Statements of Income). Fee income on deposit liabilities - These fees primarily include “not sufficient funds” fees, monthly deposit account service charge fees, commercial account analysis fees and other deposit fees. Fee income on other financial products - These fees primarily include commission income from the sales of annuity, mutual fund, and life insurance products. ASB also offers a fee-based, managed account product in which income is based on a percentage of assets under management. Other Segment . Other sales. Other sales primarily consist of revenues from the generation and sale of renewable energy at fixed contractual prices per kWh to customers under power purchase agreements by Pacific Current subsidiaries. The performance obligation is satisfied over time as renewable energy is generated and control is transferred to the customer that simultaneously receives and consumes the benefits provided. Payments from customers are generally due within 30 days from the end of the billing period. The bill to customers reflect the amount that corresponds directly with the value of performance to date. Pacific Current has elected to use the right to invoice practical expedient, which entitles it to recognize revenue in the amount they have the right to invoice. Revenues from other sources. Revenues from other sources not subject to Topic 606 are accounted for as follows: Electric Utilities . Regulatory revenues . Regulatory revenues primarily consist of revenues from the decoupling mechanism and cost recovery surcharges. Decoupling mechanism - Under the current decoupling mechanism, the Utilities are allowed to recover or obligated to refund the difference between actual revenue and the target revenue as determined by the PUC, collect annual revenue adjustment mechanism (ARA) and exceptional project recovery mechanism revenues, and recover or refund performance incentive mechanism penalties or rewards. These adjustments will be reflected in tariffs in future periods. Under the PBR framework, the accrued RBA revenues as of the preceding September 30 balance and the annual ARA amount are billed from January 1 through December 31 of each year, which is within 24 months following the end of the year in which they are recorded as required by the accounting standard for alternative revenue programs (see “Regulatory proceedings” in Note 3). Cost recovery surcharges - For the timely recovery of additional costs incurred, and reconciliation of costs and expenses included in tariffed rates, the Utilities recognize revenues under surcharge mechanisms approved by the PUC. These will be reflected in tariffs in future periods (e.g., ECRC and PPAC). Since revenue adjustments discussed above resulted from either agreements with the PUC or change in tax law, rather than contracts with customers, they are not subject to the scope of Topic 606. Also, see Notes 1, 3 and 12 of the Consolidated Financial Statements. The Utilities have elected to present these revenue adjustments on a gross basis, which results in the amounts being billed to customers presented in revenues from contracts with customers and the amortization of the related regulatory asset/liability as revenues from other sources. Depending on whether the previous deferral balance being amortized was a regulatory asset or regulatory liability, and depending on the size and direction of the current year deferral of surcharges and/or refunds to customers, it could result in negative regulatory revenue during the year. Utility pole attachment fees . These fees primarily represent revenues from third-party companies for their access to and shared use of Utilities-owned poles through licensing agreements. As the shared portion of the utility pole is functionally dependent on the rest of the structure, no distinct goods appear to exist. Therefore, these fees are not subject to the scope of Topic 606, but recognized in accordance with ASC Topic 610, Other Income . Bank . Interest and dividend income . Interest and fees on loans are recognized in accordance with ASC Topic 310, Receivables , including the related allowance for credit losses. Interest and dividends on investment securities are recognized in accordance with ASC Topic 320, Investments-Debt and Equity Securities. See Notes 1 and 4 of the Consolidated Financial Statements. Other bank noninterest income . Other bank noninterest income primarily consists of mortgage banking income and bank-owned life insurance income. Mortgage banking income - Mortgage banking income consists primarily of realized and unrealized gains on sale of loans accounted for pursuant to ASC Topic 860, Transfers and Servicing . Interest rate lock commitments and forward loan sales are considered derivatives and are accounted pursuant to ASC Topic 815, Derivatives and Hedging . Bank-Owned Life Insurance (BOLI) - The recognition of BOLI cash surrender value does not represent a contract with a customer and is accounted for in accordance with Emerging Issues Task Force Issue 06-05, Accounting for Purchases of Life Insurance-Determining the Amount that Could be Realized in Accordance with FASB Technical Bulletin No. 85-4, Accounting for Purchases of Life Insurance . Revenue disaggregation. The following tables disaggregate revenues by major source, timing of revenue recognition, and segment: Year ended December 31, 2021 Year ended December 31, 2020 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 830,653 $ — $ — $ 830,653 $ 766,609 $ — $ — $ 766,609 Electric energy sales - commercial 791,424 — — 791,424 703,516 — — 703,516 Electric energy sales - large light and power 837,834 — — 837,834 751,464 — — 751,464 Electric energy sales - other 10,770 — — 10,770 8,054 — — 8,054 Bank fees — 46,658 — 46,658 — 38,887 — 38,887 Other sales — — 4,086 4,086 — — 921 921 Total revenues from contracts with customers 2,470,681 46,658 4,086 2,521,425 2,229,643 38,887 921 2,269,451 Revenues from other sources Regulatory revenue 40,069 — — 40,069 11,869 — — 11,869 Bank interest and dividend income — 242,266 — 242,266 — 244,663 — 244,663 Other bank noninterest income — 17,474 — 17,474 — 29,961 — 29,961 Other 28,886 — 259 29,145 23,808 — 23 23,831 Total revenues from other sources 68,955 259,740 259 328,954 35,677 274,624 23 310,324 Total revenues $ 2,539,636 $ 306,398 $ 4,345 $ 2,850,379 $ 2,265,320 $ 313,511 $ 944 $ 2,579,775 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 46,658 $ — $ 46,658 $ — $ 38,887 $ — $ 38,887 Services/goods transferred over time 2,470,681 — 4,086 2,474,767 2,229,643 — 921 2,230,564 Total revenues from contracts with customers $ 2,470,681 $ 46,658 $ 4,086 $ 2,521,425 $ 2,229,643 $ 38,887 $ 921 $ 2,269,451 There are no material contract assets or liabilities associated with revenues from contracts with customers existing at December 31, 2021 and 2020. Accounts receivable and unbilled revenues related to contracts with customers represent an unconditional right to consideration since all performance obligations have been satisfied. These amounts are disclosed as accounts receivable and unbilled revenues, net on HEI’s consolidated balance sheets and customer accounts receivable, net and accrued unbilled revenues, net on Hawaiian Electric’s consolidated balance sheets. As of December 31, 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 | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement benefits | Note 10 · Retirement benefits Defined benefit plans. Substantially all of the employees of HEI and the Utilities participate in the Retirement Plan for Employees of Hawaiian Electric Industries, Inc. and Participating Subsidiaries (HEI Pension Plan). Substantially all of the employees of ASB participated in the American Savings Bank Retirement Plan (ASB Pension Plan) until it was frozen on December 31, 2007. The HEI Pension Plan and the ASB Pension Plan (collectively, the Plans) are qualified, noncontributory defined benefit pension plans and include, in the case of the HEI Pension Plan, benefits for utility union employees determined in accordance with the terms of the collective bargaining agreements between the Utilities and the union. The Plans are subject to the provisions of ERISA. In addition, some current and former executives and directors of HEI and its subsidiaries participate in noncontributory, nonqualified plans (collectively, Supplemental Plans). In general, benefits are based on the employees’ or directors’ years of service and compensation. The continuation of the Plans and the Supplemental Plans and the payment of any contribution thereunder are not assumed as contractual obligations by the participating employers. The Supplemental Plan for directors has been frozen since 1996. The ASB Pension Plan was frozen as of December 31, 2007. The HEI Supplemental Executive Retirement Plan and ASB Supplemental Executive Retirement, Disability, and Death Benefit Plan (noncontributory, nonqualified, defined benefit plans) were frozen as of December 31, 2008. No participants have accrued any benefits under these plans after the respective plan’s freeze and the plans will be terminated at the time all remaining benefits have been paid. Each participating employer reserves the right to terminate its participation in the applicable plans at any time, and HEI and ASB reserve the right to terminate their respective plans at any time. If a participating employer terminates its participation in the Plans, the interest of each affected participant would become 100% vested to the extent funded. Upon the termination of the Plans, assets would be distributed to affected participants in accordance with the applicable allocation provisions of ERISA and any excess assets that exist would be paid to the participating employers. Participants’ benefits in the Plans are covered up to certain limits under insurance provided by the Pension Benefit Guaranty Corporation. Postretirement benefits other than pensions. HEI and the Utilities provide eligible employees health and life insurance benefits upon retirement under the Postretirement Welfare Benefits Plan for Employees of Hawaiian Electric Company, Inc. and participating employers (Hawaiian Electric Benefits Plan). Eligibility of employees and dependents is based on eligibility to retire at termination, the retirement date and the date of hire. The plan was amended in 2011, changing eligibility for certain bargaining unit employees hired prior to May 1, 2011, based on new minimum age and service requirements effective January 1, 2012, per the collective bargaining agreement, and certain management employees hired prior to May 1, 2011 based on new eligibility minimum age and service requirements effective January 1, 2012. The minimum age and service requirements for management and bargaining unit employees hired May 1, 2011 and thereafter have increased and their dependents are not eligible to receive postretirement benefits. Employees may be eligible to receive benefits from the HEI Pension Plan but may not be eligible for postretirement welfare benefits if the different eligibility requirements are not met. The executive death benefit plan was frozen on September 10, 2009 for participants at benefit levels as of that date. The Company’s and Utilities’ cost for OPEB has been adjusted to reflect the plan amendments, which reduced benefits and created prior service credits to be amortized over average future service of affected participants. The amortization of the prior service credit will reduce benefit costs until the various credit bases are fully recognized. Each participating employer reserves the right to terminate its participation in the Hawaiian Electric Benefits Plan at any time. Balance sheet recognition of the funded status of retirement plans. Employers must recognize on their balance sheets the funded status of defined benefit pension and other postretirement benefit plans with an offset to AOCI in shareholders’ equity (using the projected benefit obligation (PBO) and accumulated postretirement benefit obligation (APBO), to calculate the funded status). The PUC allowed the Utilities to adopt pension and OPEB tracking mechanisms in previous rate cases. The amount of the net periodic pension cost (NPPC) and net periodic benefits costs (NPBC) to be recovered in rates is established by the PUC in each rate case or as allowed under the new PBR Framework (see “Regulatory proceedings” in Note 3). Under the Utilities’ tracking mechanisms, any actual costs determined in accordance with GAAP that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will then be amortized over 5 years beginning with the respective utility’s next rate case. Accordingly, all retirement benefit expenses (except for executive life and nonqualified pension plan expenses, which amounted to $1.2 million and $1.1 million in 2021 and 2020, respectively) determined in accordance with GAAP will be recovered. Under the tracking mechanisms, amounts that would otherwise be recorded in AOCI (excluding amounts for executive life and nonqualified pension plans), net of taxes, as well as other pension and OPEB charges, are allowed to be reclassified as a regulatory asset, as those costs will be recovered in rates through the NPPC and NPBC in the future. The Utilities have reclassified to a regulatory asset/(liability) charges for retirement benefits that would otherwise be recorded in AOCI (amounting to the elimination of a potential adjustment to AOCI of $(230.8) million pretax and $53.7 million pretax for 2021 and 2020, respectively). Under the pension tracking mechanism, the Utilities are required to make contributions to the pension trust in the amount of the actuarially calculated NPPC, except when limited by the ERISA minimum contribution requirements or the maximum contributions imposed by the Internal Revenue Code. Contributions in excess of the calculated NPPC are recorded in a separate regulatory asset. The OPEB tracking mechanisms generally require the Utilities to make contributions to the OPEB trust in the amount of the actuarially calculated NPBC, (excluding amounts for executive life), except when limited by material, adverse consequences imposed by federal regulations. Future decisions in rate cases could further impact funding amounts. Defined benefit pension and other postretirement benefit plans information. The changes in the obligations and assets of the Company’s and Utilities’ retirement benefit plans and the changes in AOCI (gross) for 2021 and 2020 and the funded status of these plans and amounts related to these plans reflected in the Company’s and Utilities’ consolidated balance sheets as of December 31, 2021 and 2020 were as follows: 2021 2020 (in thousands) Pension Other Pension Other HEI consolidated Benefit obligation, January 1 $ 2,624,530 $ 226,421 $ 2,278,283 $ 215,639 Service cost 81,432 2,827 73,387 2,537 Interest cost 75,361 6,122 81,335 7,407 Actuarial (gains) losses (43,300) (8,527) 275,973 9,785 Participants contributions — 2,943 — 2,768 Benefits paid and expenses (93,384) (11,635) (84,448) (11,715) Benefit obligation, December 31 2,644,639 218,151 2,624,530 226,421 Fair value of plan assets, January 1 2,089,491 219,873 1,799,200 200,831 Actual return on plan assets 271,443 28,130 302,566 27,678 Employer contributions 51,777 — 70,844 — Participants contributions — 2,943 — 2,768 Benefits paid and expenses (91,966) (11,635) (83,119) (11,404) Fair value of plan assets, December 31 2,320,745 239,311 2,089,491 219,873 Accrued benefit asset (liability), December 31 $ (323,894) $ 21,160 $ (535,039) $ (6,548) Other assets $ 23,675 $ 21,663 $ 25,851 $ — Defined benefit pension and other postretirement benefit plans liability (347,569) (503) (560,890) (6,548) Accrued benefit asset (liability), December 31 $ (323,894) $ 21,160 $ (535,039) $ (6,548) AOCI debit, January 1 (excluding impact of PUC D&Os) $ 557,564 $ 2,395 $ 503,821 $ 6,610 Recognized during year – prior service credit (cost) — 1,533 (8) 1,761 Recognized during year – net actuarial loss (27,245) (203) (33,456) (208) Occurring during year – net actuarial loss (gain) (182,520) (23,700) 87,207 (5,768) AOCI debit before cumulative impact of PUC D&Os, December 31 347,799 (19,975) 557,564 2,395 Cumulative impact of PUC D&Os (324,162) 19,166 (534,594) (1,177) AOCI debit/(credit), December 31 $ 23,637 $ (809) $ 22,970 $ 1,218 Net actuarial loss (gain) $ 347,799 $ (18,172) $ 557,564 $ 5,731 Prior service gain — (1,803) — (3,336) AOCI debit before cumulative impact of PUC D&Os, December 31 347,799 (19,975) 557,564 2,395 Cumulative impact of PUC D&Os (324,162) 19,166 (534,594) (1,177) AOCI debit/(credit), December 31 23,637 (809) 22,970 1,218 Income taxes (benefits) (6,199) 209 (5,988) (313) AOCI debit/(credit), net of taxes (benefits), December 31 $ 17,438 $ (600) $ 16,982 $ 905 As shown in the table above, as of December 31, 2021, the other postretirement benefit plans with APBOs in excess of plan assets are unfunded plans, and as of December 31, 2020, all of the other postretirement benefit plans had APBOs in excess of plan assets. 2021 2020 (in thousands) Pension Other Pension Other Hawaiian Electric consolidated Benefit obligation, January 1 $ 2,440,758 $ 217,074 $ 2,110,904 $ 207,073 Service cost 79,463 2,802 71,604 2,515 Interest cost 70,235 5,875 75,484 7,103 Actuarial (gains) losses (39,755) (7,779) 260,102 9,151 Participants contributions — 2,886 — 2,717 Benefits paid and expenses (85,425) (11,388) (77,336) (11,485) Transfers (332) — — — Benefit obligation, December 31 2,464,944 209,470 2,440,758 217,074 Fair value of plan assets, January 1 1,909,730 216,315 1,640,417 197,564 Actual return on plan assets 266,922 27,712 276,453 27,207 Employer contributions 51,079 — 69,720 — Participants contributions — 2,886 — 2,717 Benefits paid and expenses (84,852) (11,388) (76,860) (11,173) Other (262) — — — Fair value of plan assets, December 31 2,142,617 235,525 1,909,730 216,315 Accrued benefit asset (liability), December 31 $ (322,327) $ 26,055 $ (531,028) $ (759) Other assets $ — $ 26,055 $ — $ — Other liabilities (short-term) (547) — (535) (720) Defined benefit pension and other postretirement benefit plans liability (321,780) — (530,493) (39) Accrued benefit asset (liability), December 31 $ (322,327) $ 26,055 $ (531,028) $ (759) AOCI debit, January 1 (excluding impact of PUC D&Os) $ 538,521 $ 1,181 $ 478,078 $ 5,730 Recognized during year – prior service credit (cost) — 1,530 (9) 1,758 Recognized during year – net actuarial loss (27,534) (206) (30,566) (207) Occurring during year – net actuarial loss (gain) (181,342) (22,736) 91,018 (6,100) AOCI debit before cumulative impact of PUC D&Os, December 31 329,645 (20,231) 538,521 1,181 Cumulative impact of PUC D&Os (324,162) 19,166 (534,594) (1,177) AOCI debit/(credit), December 31 $ 5,483 $ (1,065) $ 3,927 $ 4 Net actuarial loss (gain) $ 329,645 $ (18,434) $ 538,521 $ 4,508 Prior service gain — (1,797) — (3,327) AOCI debit before cumulative impact of PUC D&Os, December 31 329,645 (20,231) 538,521 1,181 Cumulative impact of PUC D&Os (324,162) 19,166 (534,594) (1,177) AOCI debit/(credit), December 31 5,483 (1,065) 3,927 4 Income taxes (benefits) (1,412) 274 (1,011) (1) AOCI debit/(credit), net of taxes (benefits), December 31 $ 4,071 $ (791) $ 2,916 $ 3 As of December 31, 2020, the other postretirement benefit plan shown in the table above had APBOs in excess of plan assets. Pension benefits . In 2021, investment returns were higher than assumed rates and improved the funded position. Actuarial gains due to demographic experience, including assumption changes, the most significant of which was the increase in the discount rate used to measure PBO compared to the prior year, improved funded position while the updates to mortality assumptions projected generationally, partially offset the improvement. In 2020, investment returns were higher than assumed rates and together with updates to mortality assumptions projected generationally, improved the funded position. Actuarial losses due to demographic experience, including assumption changes, the most significant of which was the decrease in the discount rate used to measure PBO compared to the prior year, partially offset the improvement in funded position. Other benefits . In 2021, investment returns were higher than assumed rates and improved funded position. Actuarial gains due to demographic experience, including assumption changes, the most significant of which was the increase in the discount rate used to measure APBO, improved the funded position while the updates to the per capita claims cost to reflect 2022 premiums and mortality assumptions projected generationally, partially offset the improvement. In 2020, investment returns were higher than assumed rates and together with updates to the per capita claims cost to reflect 2021 premiums, improved funded position and offset the actuarial losses due to demographic experience, including assumption changes, the most significant of which was the decrease in the discount rate used to measure APBO. The dates used to determine retirement benefit measurements for the defined benefit plans and OPEB were December 31 of 2021, 2020 and 2019. Through December 31, 2020, for purposes of calculating NPPC and NPBC for all plan assets, the Company and the Utilities have determined the market-related value of retirement benefit plan assets, primarily equity securities and fixed income securities, by calculating the difference between the expected return and the actual return on the fair value of the plan assets, then amortizing the difference over future years – 0% in the first year and 25% in each of years two through five – and finally adding or subtracting the unamortized differences for the past four years from fair value. The method includes a 15% range restriction around the fair value of such assets (i.e., 85% to 115% of fair value). 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. A primary goal of the plans is to achieve long-term asset growth sufficient to pay future benefit obligations at a reasonable level of risk. The investment policy target for defined benefit pension and OPEB plans of HEI and the Utilities reflects the philosophy that long-term growth can best be achieved by prudent investments in equity securities while balancing overall fund and pension liability volatility by an appropriate allocation to fixed income securities. To reduce the level of portfolio risk and volatility in returns, efforts have been made to diversify the plans’ investments by asset class, geographic region, market capitalization and investment style. ASB’s frozen, overfunded defined benefit pension plan is invested in a portfolio that uses a liability-driven investment strategy to limit funded status volatility. The asset allocation of defined benefit retirement plans to equity and fixed income securities (excluding cash) and related investment policy targets and ranges were as follows: Pension benefits 1 Other benefits 2 Investment policy Investment policy December 31 2021 2020 Target Range 3 2021 2020 Target Range 3 Assets held by category U.S. equity securities 59 % 58 % 52 % 45-65% 58 % 57 % 52 % 45-65% Non-U.S equity securities 13 14 15 5-25% 15 16 15 5-25% Fixed income securities 27 28 30 20-40% 27 27 30 20-40% Private equity 1 — 3 0-5% — — 3 0-5% 100 % 100 % 100 % 100 % 100 % 100 % 1 Asset allocation (excluding cash) is applicable to only HEI and the Utilities. As of December 31, 2021 and 2020, nearly all of ASB’s pension assets were invested in fixed income securities. 2 Asset allocation (excluding cash) is applicable to only HEI and the Utilities. ASB does not fund its other benefits. 3 Broad range for equity securities is a minimum of 60% and a maximum of 80% for pension benefits and other benefits. The fair values of the investments shown in the tables below represent the Company’s best estimates of the amounts that would be received upon sale of those assets in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset at the measurement date, the fair value measurement reflects the Company’s judgments about the assumptions that market participants would use in pricing the asset. Those judgments are developed by the Company based on the best information available in the circumstances. The Company used the following valuation methodologies for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2021 and 2020. Equity securities equity index and exchange-traded funds, U.S. Treasury fixed income securities and public mutual funds (Level 1) . Equity securities, equity index and exchange-traded funds, U.S. Treasury fixed income securities and public mutual funds are valued at the closing price reported on the active market on which the individual securities or funds are traded. Fixed income securities, preferred securities (Level 2) . Fixed income and preferred securities, other than those issued by the U.S. Treasury, are valued based on yields currently available on comparable securities of issuers with similar credit ratings. Assets held in various trusts for the retirement benefit plans are measured at fair value on a recurring basis and were as follows: Pension benefits Other benefits Fair value measurements using Fair value measurements using (in millions) December 31 Quoted prices in active markets for identical assets Significant other observable inputs December 31 Quoted prices in active markets for identical assets Significant other observable inputs 2021 U.S. equity securities $ 432 $ 431 $ 1 $ 53 $ 53 $ — Non-U.S. equity securities 188 188 — 24 24 — U.S. equity index and exchange-traded funds 830 830 — 84 84 — Non-U.S. equity investments at net asset value (NAV) 96 — — 12 — — Total equity investments 1,546 1,449 1 173 161 — Fixed income securities and public mutual funds 393 146 247 58 56 2 Fixed income investments at NAV 307 — — 5 — — Total fixed income investments 700 146 247 63 56 2 Private equity at NAV 22 — — — — — Cash equivalents, fund and at NAV 50 15 — 3 3 — Total 2,318 $ 1,610 $ 248 239 $ 220 $ 2 Cash, receivables and payables, net 3 — Fair value of plan assets $ 2,321 $ 239 2020 U.S. equity securities $ 368 $ 368 $ — $ 46 $ 46 $ — Non-U.S. equity securities 172 172 — 22 22 — U.S. equity index and exchange-traded funds 734 734 — 77 77 — Non-U.S. equity investments at NAV 102 — — 13 — — Total equity investments 1,376 1,274 — 158 145 — Fixed income securities and public mutual funds 363 105 258 53 51 2 Fixed income investments at NAV 278 — — 5 — — Total fixed income investments 641 105 258 58 51 2 Cash equivalents at NAV 68 25 — 4 3 — Total 2,085 $ 1,404 $ 258 220 $ 199 $ 2 Cash, receivables and payables, net 4 — Fair value of plan assets $ 2,089 $ 220 The fair value of investments measured at NAV presented in the table above is intended to permit reconciliation to the fair value of plan assets amounts. The following table represents assets measured at NAV. Pension benefits Other benefits Measured at NAV December 31 Redemption frequency Redemption notice period December 31 Redemption frequency Redemption notice period (in millions) 2021 Non-U.S. equity funds (a) $ 96 Daily-Monthly 5-30 days $ 12 Daily-Monthly 5-30 days Fixed income investments (b) 307 Daily 15 days 5 Daily 15 days Private equity (c) 22 NA NA — NA NA Cash equivalents (d) 35 Daily 0-1 day — Daily 0-1 day $ 460 $ 17 2020 Non-U.S. equity funds (a) $ 102 Daily-Monthly 5-30 days $ 13 Daily-Monthly 5-30 days Fixed income investments (b) 278 Daily 15 days 5 Daily 15 days Cash equivalents (d) 43 Daily 0-1 day 1 Daily 0-1 day $ 423 $ 19 NA Not applicable None of the investments presented in the tables above have unfunded commitments, other than private equity disclosed in (c) below. (a) Represents investments in funds that primarily invest in non-U.S., emerging markets equities. Redemption frequency for pension benefits assets as of December 31, 2021 were: daily, 61% and monthly, 39%, and as of December 31, 2020 were daily, 62% and monthly, 38%. Redemption frequency for other benefits assets as of December 31, 2021 were: daily, 57% and monthly, 43% and as of December 31, 2020 were: daily, 58% and monthly, 42%. (b) Represents investments in fixed income securities invested in a US-dollar denominated fund that seeks to exceed the Barclays Capital Long Corporate A or better Index through investments in US-dollar denominated fixed income securities and commingled vehicles. (c) Represents investment in a private equity fund. The fund is valued as reported by the General Partner, based on the valuation of the underlying investments. As of December 31, 2021, the unfunded commitment of the private equity fund was $66 million; the fund does not allow redemptions but may be dissolved with six months written notice. The termination date of the fund is November 1, 2100, unless dissolved earlier. (d) Represents investments in cash equivalent funds. This class includes funds that invest primarily in securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. For pension benefits, the fund may also invest in fixed income securities of investment grade issuers. The following weighted-average assumptions were used in the accounting for the plans: Pension benefits Other benefits December 31 2021 2020 2019 2021 2020 2019 Benefit obligation Discount rate 1 3.05 % 2.92 % 3.61 % 3.07 % 2.83 % 3.52 % Rate of compensation increase 3.5 3.5 3.5 NA NA NA Net periodic pension/benefit cost (years ended) Discount rate 2 2.92 3.61 4.31 2.83 3.52 4.34 Expected return on plan assets 3 7.25 7.25 7.25 7.25 7.25 7.25 Rate of compensation increase 4 3.5 3.5 3.5 NA NA NA NA Not applicable 1 HEI and the Utilities pension benefits discount rate only at December 31, 2021, 2020 and 2019. ASB’s pension benefits discount rate at December 31, 2021, 2020 and 2019 was 3.04%, 2.76% and 3.49%, respectively. All other disclosed rates apply to the Company and the Utilities. 2 ASB’s pension benefits discount rate for the year ended December 31, 2021 and 2020 was 2.76% and 3.49%. All other disclosed rates apply to the Company and the Utilities. 3 HEI and the Utilities’ plan assets only (gross return). For 2021, 2020 and 2019, ASB’s expected return on plan assets was 2.96%, 3.69% and 4.51%, respectively. 4 HEI and the Utilities use a graded rate of compensation increase assumption based on age. The rate provided above is an average across all future years of service for the current population. NA for ASB. The Company and the Utilities based their selection of an assumed discount rate for 2022 NPPC and NPBC and December 31, 2021 disclosure on a cash flow matching analysis that utilized bond information provided by Bloomberg for all non-callable, high quality bonds (generally rated Aa or better) as of December 31, 2021. In selecting the expected rate of return on plan assets for 2022 NPPC and NPBC: a) HEI and the Utilities considered economic forecasts for the types of investments held by the plans (primarily equity and fixed income investments), the Plans’ asset allocations, industry and corporate surveys and the past performance of the plans’ assets in selecting 7.25% and b) ASB considered its liability-driven investment strategy in selecting 3.24%, which is consistent with the assumed discount rate as of December 31, 2021 with a 20 basis point active manager premium. For 2021, retirement benefit plans’ assets of the Company and the Utilities had a net return of 13.2% and 14.2%, respectively. As of December 31, 2021, the assumed health care trend rates for 2022 and future years were as follows: medical, 6.50%, grading down to 5% for 2028 and thereafter; dental, 5%; and vision, 4%. As of December 31, 2020, the assumed health care trend rates for 2021 and future years were as follows: medical, 6.75%, grading down to 5% for 2028 and thereafter; dental, 5%; and vision, 4%. The components of NPPC and NPBC were as follows: Pension benefits Other benefits (in thousands) 2021 2020 2019 2021 2020 2019 HEI consolidated Service cost $ 81,432 $ 73,387 $ 62,135 $ 2,827 $ 2,537 $ 2,209 Interest cost 75,361 81,335 84,267 6,122 7,407 8,004 Expected return on plan assets (132,223) (113,800) (111,989) (12,957) (12,124) (12,356) Amortization of net prior service (gain) cost — 8 (42) (1,533) (1,761) (1,806) Amortization of net actuarial losses 27,245 33,456 15,479 203 208 (13) Net periodic pension/benefit cost 51,815 74,386 49,850 (5,338) (3,733) (3,962) Impact of PUC D&Os 27,963 20,997 48,143 4,839 3,179 3,258 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 79,778 $ 95,383 $ 97,993 $ (499) $ (554) $ (704) Hawaiian Electric consolidated Service cost $ 79,463 $ 71,604 $ 60,461 $ 2,802 $ 2,515 $ 2,191 Interest cost 70,235 75,484 77,851 5,875 7,103 7,673 Expected return on plan assets (125,404) (107,369) (104,632) (12,755) (11,957) (12,180) Amortization of net prior service (gain) cost — 9 7 (1,530) (1,758) (1,803) Amortization of net actuarial losses 27,534 30,566 14,658 206 207 — Net periodic pension/benefit cost 51,828 70,294 48,345 (5,402) (3,890) (4,119) Impact of PUC D&Os 27,963 20,997 48,143 4,839 3,179 3,258 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 79,791 $ 91,291 $ 96,488 $ (563) $ (711) $ (861) The Company recorded pension expense of $47 million, $59 million, $59 million in 2021, 2020 and 2019, respectively, and OPEB income of $(0.1) million in 2021, 2020 and 2019 and charged the remaining amounts primarily to electric utility plant. The Utilities recorded pension expense of $47 million, $55 million and $57 million, respectively, and OPEB income of $(0.2) million, $(0.2) million and $(0.3) million in 2021, 2020 and 2019, respectively, and charged the remaining amounts primarily to electric utility plant. Additional information on the defined benefit pension plans’ accumulated benefit obligations (ABOs), which do not consider projected pay increases (unlike the PBOs shown in the table above), and pension plans with ABOs and PBOs in excess of plan assets were as follows: HEI consolidated Hawaiian Electric consolidated December 31 2021 2020 2021 2020 (in billions) Defined benefit plans - ABOs $ 2.3 $ 2.3 $ 2.1 $ 2.1 Defined benefit plans with ABO in excess of plan assets ABOs — 2.1 — 2.1 Fair value of plan assets — 2.0 — 1.9 Defined benefit plans with PBOs in excess of plan assets PBOs 2.5 2.5 2.5 2.4 Fair value of plan assets 2.2 2.0 2.1 1.9 HEI consolidated . The Company estimates that the cash funding for the qualified defined benefit pension plans in 2022 will be $41 million, which should fully satisfy the minimum required contributions to those plans, including requirements of the Utilities’ pension tracking mechanisms and the Plan’s funding policy. The Company’s current estimate of contributions to its other postretirement benefit plans in 2022 is nil. As of December 31, 2021, the benefits expected to be paid under all retirement benefit plans in 2022, 2023, 2024, 2025, 2026 and 2027 through 2031 amount to $102 million, $105 million, $108 million, $112 million, $116 million and $632 million, respectively. Hawaiian Electric consolidated . The Utilities estimate that the cash funding for the qualified defined benefit pension plan in 2022 will be $41 million, which should fully satisfy the minimum required contributions to that Plan, including requirements of the pension tracking mechanisms and the Plan’s funding policy. The Utilities’ current estimate of contributions to its other postretirement benefit plans in 2022 is nil. As of December 31, 2021, the benefits expected to be paid under all retirement benefit plans in 2022, 2023, 2024, 2025, 2026 and 2027 through 2031 amounted to $93 million, $96 million, $99 million, $102 million, $106 million and $580 million, respectively. Defined contribution plans information. For each of 2021, 2020 and 2019, the Company’s expenses and cash contributions for its defined contribution plans under the HEIRSP and the ASB 401(k) Plan were $6 million, $7 million and $7 million, respectively. The Utilities’ expenses and cash contributions for its defined contribution plan under the HEIRSP for 2021, 2020 and 2019 were $3 million. Retirement benefit plan changes . On December 3, 2021, the Utilities’ union members ratified a new collective bargaining agreement (see Note 3), which includes changes to retirement benefits for all new employees commencing employment on or after January 1, 2022. The changes ratified in the collective bargaining agreement will apply to all employees of HEI and the Utilities first hired on or after January 1, 2022 (New Employees). New Employees are not eligible to participate in the HEI Pension Plan. Instead, New Employees will receive a non-elective employer contribution, equal to 10% of their annual compensation, subject to a vesting schedule, to their account under the HEIRSP, the defined contribution plan for HEI and the Utilities. Only New Employees are impacted by the retirement benefit plan changes. There are no retirement benefit plan changes for employees hired on or before December 31, 2021. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation | Note 11 · Share-based compensation Under the 2010 Equity and Incentive Plan, as amended, HEI can issue shares of common stock as incentive compensation to selected employees in the form of stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares and other share-based and cash-based awards. The 2010 Equity and Incentive Plan (original EIP) was amended and restated effective March 1, 2014 (EIP) and an additional 1.5 million shares were added to the shares available for issuance under these programs. As of December 31, 2021, approximately 2.9 million shares remained available for future issuance under the terms of the EIP, assuming recycling of shares withheld to satisfy statutory tax liabilities relating to EIP awards, including an estimated 0.5 million shares that could be issued upon the vesting of outstanding restricted stock units and the achievement of performance goals for awards outstanding under long-term incentive plans (assuming that such performance goals are achieved at maximum levels). Restricted stock units awarded under the EIP in 2021, 2020, 2019 and 2018 will vest and be issued in unrestricted stock in three four Stock performance awards granted under the 2021-23, 2020-22 and 2019-21 long-term incentive plans (LTIP) entitle the grantee to shares of common stock with dividend equivalent rights once service conditions and performance conditions are satisfied at the end of the three-year performance period. LTIP awards are forfeited for terminations of employment during the performance period, except that pro-rata participation is provided for terminations due to death, disability and retirement based upon completed months of service after a minimum of 12 months of service in the performance period. Compensation expense for the stock performance awards portion of the LTIP has been recognized in accordance with the fair-value-based measurement method of accounting for performance shares. Under the 2011 Nonemployee Director Stock Plan (2011 Director Plan), HEI can issue shares of common stock as compensation to nonemployee directors of HEI, Hawaiian Electric and ASB. In June 2019, an additional 300,000 shares were made available for issuance under the 2011 Director Plan. As of December 31, 2021, there were 244,347 shares remaining available for future issuance under the 2011 Director Plan. Share-based compensation expense and the related income tax benefit were as follows: (in millions) 2021 2020 2019 HEI consolidated Share-based compensation expense 1 $ 9.1 $ 5.8 $ 10.0 Income tax benefit 1.4 1.0 1.4 Hawaiian Electric consolidated Share-based compensation expense 1 2.7 1.8 3.2 Income tax benefit 0.6 0.4 0.6 1 For 2021, 2020 and 2019, the Company has not capitalized any share-based compensation. Stock awards. HEI granted HEI common stock to nonemployee directors under the 2011 Director Plan as follows: (dollars in millions) 2021 2020 2019 Shares granted 29,816 36,100 36,344 Fair value $ 1.3 $ 1.3 $ 1.6 Income tax benefit 0.3 0.3 0.4 The number of shares issued to each nonemployee director of HEI, Hawaiian Electric and ASB is determined based on the closing price of HEI common stock on the grant date. Restricted stock units. Information about HEI’s grants of restricted stock units was as follows: 2021 2020 2019 Shares (1) Shares (1) Shares (1) Outstanding, January 1 193,939 $ 40.89 207,641 $ 35.36 200,358 $ 33.05 Granted 137,582 34.66 78,595 47.99 96,565 37.82 Vested (79,623) 38.51 (77,719) 34.19 (76,813) 32.61 Forfeited (18,450) 39.92 (14,578) 36.20 (12,469) 34.20 Outstanding, December 31 233,448 $ 38.10 193,939 $ 40.89 207,641 $ 35.36 Total weighted-average grant-date fair value of shares granted (in millions) $ 4.8 $ 3.8 $ 3.7 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For 2021, 2020 and 2019, total restricted stock units and related dividends that vested had a fair value of $3.0 million, $4.2 million and $3.2 million, respectively, and the related tax benefits were $0.6 million, $0.7 million and $0.5 million, respectively. As of December 31, 2021, there was $4.6 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 2.0 years. Long-term incentive plan payable in stock. The 2019-21, 2020-22 and 2021-23 LTIPs provide for performance awards under the EIP of shares of HEI common stock based on the satisfaction of performance goals, including a market condition goal. The number of shares of HEI common stock that may be awarded is fixed on the date the grants are made, subject to the achievement of specified performance levels and calculated dividend equivalents. The potential payout varies from 0% to 200% of the number of target shares, depending on the achievement of the goals. The market condition goal is based on HEI’s total shareholder return (TSR) compared to the Edison Electric Institute Index over the relevant three-year period. The other performance condition goals relate to 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: 2021 2020 2019 Shares (1) Shares (1) Shares (1) Outstanding, January 1 89,222 $ 42.10 96,402 $ 39.62 65,578 $ 38.81 Granted 46,024 41.12 24,630 48.62 35,215 41.07 Vested (issued or unissued and cancelled) (32,355) 38.20 (29,409) 39.51 — — Forfeited (11,917) 43.07 (2,401) 41.22 (4,391) 39.19 Outstanding, December 31 90,974 $ 42.86 89,222 $ 42.10 96,402 $ 39.62 Total weighted-average grant-date fair value of shares granted (in millions) $ 1.9 $ 1.2 $ 1.4 (1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. The grant date fair values of the shares were determined using a Monte Carlo simulation model utilizing actual information for the common shares of HEI and its peers for the period from the beginning of the performance period to the grant date and estimated future stock volatility 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 2019 Risk-free interest rate 0.19 % 1.39 % 2.48 % Expected life in years 3 3 3 Expected volatility 29.9 % 13.1 % 15.8 % Range of expected volatility for Peer Group 25.6% to 102.9% 13.6% to 95.4% 15.0% to 73.2% Grant date fair value (per share) $ 41.12 $ 48.62 $ 41.07 For 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. There were no share-based LTIP awards linked to TSR with a vesting date in 2019. As of December 31, 2021, there was $1.0 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 1.6 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: 2021 2020 2019 Shares (1) Shares (1) Shares (1) Outstanding, January 1 220,715 $ 41.03 403,768 $ 35.15 276,169 $ 33.80 Granted 184,102 34.37 98,522 48.10 140,855 37.78 Vested (43,155) 34.12 (135,804) 33.48 — — Increase above target (cancelled) (7,646) 39.06 (136,163) 36.44 4,314 33.53 Forfeited (47,674) 38.74 (9,608) 38.36 (17,570) 34.66 Outstanding, December 31 306,342 $ 38.42 220,715 $ 41.03 403,768 $ 35.15 Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) $ 6.3 $ 4.7 $ 5.3 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For 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. There were no share-based LTIP awards linked to other performance conditions with a vesting date in 2019. As of December 31, 2021, there was $3.4 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 1.7 years. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 12 · Income taxes The components of income taxes attributable to net income for common stock were as follows: HEI consolidated Hawaiian Electric consolidated Years ended December 31 2021 2020 2019 2021 2020 2019 (in thousands) Federal Current $ 51,455 $ 23,207 $ 28,736 $ 42,794 $ 31,950 $ 21,751 Deferred (11,689) (4,215) (4,353) (12,109) (5,408) (7,793) Deferred tax credits, net* 4,611 10,979 13,410 302 1,549 13,155 44,377 29,971 37,793 30,987 28,091 27,113 State Current 12,119 8,430 10,472 4,861 3,768 5,579 Deferred 6,290 2,509 (10,732) 8,279 8,559 (8,491) Deferred tax credits, net* 21 — 14,104 21 — 14,104 18,430 10,939 13,844 13,161 12,327 11,192 Total $ 62,807 $ 40,910 $ 51,637 $ 44,148 $ 40,418 $ 38,305 * In 2021 and 2020, primarily represents federal tax credits related to Mauo’s solar-plus-storage project, deferred and amortized starting in 2021 and 2020, respectively. In 2019, primarily represents federal and state credits related to Hawaiian Electric’s West Loch PV project, deferred and amortized starting in 2020. A reconciliation of the amount of income taxes computed at the federal statutory rate to the amount provided in the consolidated statements of income was as follows: HEI consolidated Hawaiian Electric consolidated Years ended December 31 2021 2020 2019 2021 2020 2019 (in thousands) Amount at the federal statutory income tax rate $ 65,281 $ 50,531 $ 56,996 $ 46,995 $ 44,468 $ 41,399 Increase (decrease) resulting from: State income taxes, net of federal income tax benefit 15,735 9,448 11,658 10,323 9,658 8,703 Net deferred tax asset (liability) adjustment related to the Tax Act (9,886) (11,267) (9,255) (9,886) (11,267) (9,255) Other, net (8,323) (7,802) (7,762) (3,284) (2,441) (2,542) Total $ 62,807 $ 40,910 $ 51,637 $ 44,148 $ 40,418 $ 38,305 Effective income tax rate 20.2 % 17.0 % 19.0 % 19.7 % 19.1 % 19.4 % The tax effects of book and tax basis differences that give rise to deferred tax assets and liabilities were as follows: HEI consolidated Hawaiian Electric consolidated December 31 2021 2020 2021 2020 (in thousands) Deferred tax assets Regulatory liabilities, excluding amounts attributable to property, plant and equipment $ 87,817 $ 93,684 $ 87,817 $ 93,684 Operating lease liabilities 35,449 41,582 29,661 34,586 Revenue taxes 35,040 22,726 35,040 22,726 Allowance for bad debts 26,217 31,973 7,156 4,835 Other 1 58,518 44,127 20,529 24,741 Total deferred tax assets 243,041 234,092 180,203 180,572 Deferred tax liabilities Property, plant and equipment related 500,659 487,209 490,713 473,734 Operating lease right-of-use assets 35,271 41,370 29,661 34,586 Regulatory assets, excluding amounts attributable to property, plant and equipment 23,700 25,841 23,700 25,841 Retirement benefits 6,863 18,407 8,261 20,537 Other 61,308 56,354 36,502 23,672 Total deferred tax liabilities 627,801 629,181 588,837 578,370 Net deferred income tax liability $ 384,760 $ 395,089 $ 408,634 $ 397,798 1 As of December 31, 2021, HEI consolidated and Hawaiian Electric consolidated have deferred tax assets of $11.0 million and $2.5 million respectively, relating to the benefit of state tax credit carryforwards of $14.6 million and $3.4 million respectively. These state tax credit carryforwards primarily relate to the West Loch PV project and do not expire. The Company concluded that as of December 31, 2021, a valuation allowance is not required. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are deductible. Based upon historical taxable income and projections for future taxable income, management believes it is more likely than not the Company and the Utilities will realize substantially all of the benefits of the deferred tax assets. As of December 31, 2021 and 2020, valuation allowances for deferred tax benefits were nil. The Utilities are included in the consolidated federal and Hawaii income tax returns of HEI and are subject to the provisions of HEI’s tax sharing agreement, which determines each subsidiary’s (or subgroup’s) income tax return liabilities and refunds on a standalone basis as if it filed a separate return (or subgroup consolidated return). The following is a reconciliation of the Company’s liability for unrecognized tax benefits for 2021, 2020 and 2019. HEI consolidated Hawaiian Electric consolidated (in millions) 2021 2020 2019 2021 2020 2019 Unrecognized tax benefits, January 1 $ 12.7 $ 2.2 $ 2.1 $ 12.7 $ 1.7 $ 1.6 Additions based on tax positions taken during the year 2.8 0.2 0.5 0.3 0.2 0.5 Reductions based on tax positions taken during the year (0.5) — — — — — Additions for tax positions of prior years 7.6 11.6 0.1 0.2 11.6 0.1 Reductions for tax positions of prior years (5.5) (0.1) (0.2) (1.6) (0.1) (0.2) Lapses of statute of limitations — (0.2) (0.3) — (0.2) (0.3) Settlement — (1.0) — — (0.5) — Unrecognized tax benefits, December 31 $ 17.1 $ 12.7 $ 2.2 $ 11.6 $ 12.7 $ 1.7 At December 31, 2021 and 2020, there were $10.2 million and $11.6 million, respectively, of unrecognized tax benefits that, if recognized, would affect the Company’s annual effective tax rate. As of December 31, 2021 and 2020, the Utilities had $10.2 million and $11.6 million, respectively, of unrecognized tax benefits that, if recognized, would affect the Utilities’ annual effective tax rate. HEI consolidated. The Company recognizes interest accrued related to unrecognized tax benefits in “Interest expense-other than on deposit liabilities and other bank borrowings” and penalties, if any, in operating expenses. In 2021, 2020 and 2019, the Company recognized approximately $0.2 million, $(0.5) million and $0.1 million, respectively, in interest expense. The Company had $0.3 million and $0.1 million of interest accrued as of December 31, 2021 and 2020, respectively. Hawaiian Electric consolidated. The Utilities recognize interest accrued related to unrecognized tax benefits in “Interest expense and other charges, net” and penalties, if any, in operating expenses. In 2021, 2020 and 2019, the Utilities recognized approximately $0.1 million, $(0.3) million and $0.1 million, respectively, in interest expense. The Utilities had $0.1 million and $0.1 million of interest accrued as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the disclosures above present the Company’s and the Utilities’ accruals for potential tax liabilities, which involve management’s judgment regarding the likelihood of the benefits being sustained under governmental review. While the Company and the Utilities currently do not expect material changes to occur in the next twelve months, the Company and the Utilities are generally unable to estimate the range of impacts on the balance of uncertain tax positions or the impact on the effective tax rate from the resolution of these issues until the Internal Revenue Service addresses them in the current examination process, and therefore, it is possible that the amount of unrecognized benefit with respect to the Company’s and the Utilities’ uncertain tax positions could increase or decrease within the next 12 months. The final resolution of uncertain tax positions could result in adjustments to recorded amounts. Based on information currently available, the Company and the Utilities believe these accruals have adequately provided for potential income tax issues with federal and state tax authorities, and that the ultimate resolution of tax issues for all open tax periods will not have a material adverse effect on its results of operations, financial condition or liquidity. The statute of limitations for IRS examinations has expired for years prior to 2017. The Company is currently under IRS examination for the tax years 2017 and 2018. In the fourth quarter of 2020, the Company and the Hawaii Department of Taxation agreed to a final assessment of tax liabilities for the years 2011 through 2018, however, the statute of limitations for Hawaii remains open for tax years 2017 and subsequent. |
Cash flows
Cash flows | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash flows | Note 13 · Cash flows Years ended December 31 2021 2020 2019 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates, net of amounts capitalized $ 98 $ 98 $ 107 Income taxes paid (net of refundable credits) 41 32 56 Income taxes refunded (including refundable credits) 7 3 4 Hawaiian Electric consolidated Interest paid to non-affiliates, net of amounts capitalized 71 65 68 Income taxes paid (net of refundable credits) 45 41 55 Income taxes refunded (including refundable credits) 5 3 4 Supplemental disclosures of noncash activities HEI consolidated Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 48 44 64 Loans transferred from held for investment to held for sale (investing) 61 — — Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) 3 — — Right-of-use assets obtained in exchange for operating lease obligations (investing) 44 26 7 Common stock issued (gross) for director and executive/management compensation (financing) 1 7 16 5 Obligations to fund low income housing investments, net (investing) 36 25 11 Hawaiian Electric consolidated Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 43 41 62 Right-of-use assets obtained in exchange for operating lease obligations (investing) 44 17 2 HEI Consolidated and Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 8 10 9 Reduction of long-term debt from funds previously transferred for repayment (financing) — 82 — 1 The amounts shown represent the market value of common stock issued for director and executive/management compensation and withheld to satisfy statutory tax liabilities. |
Regulatory restrictions on net
Regulatory restrictions on net assets | 12 Months Ended |
Dec. 31, 2021 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory restrictions on net assets | Note 14 · Regulatory restrictions on net assets The abilities of certain of HEI’s subsidiaries to pay dividends or make other distributions to HEI are subject to contractual and regulatory restrictions. Under the PUC Agreement, in the event that the consolidated common stock equity of the electric utility subsidiaries falls below 35% of the total capitalization of the electric utilities (including the current maturities of long-term debt, but excluding short-term borrowings), the electric utility subsidiaries would, absent PUC approval, be restricted in their payment of cash dividends to 80% of the earnings available for the payment of dividends in the current fiscal year and preceding five years, less the amount of dividends paid during that period. The PUC Agreement also provides that the foregoing dividend restriction shall not be construed as relinquishing any right the PUC may have to review the dividend policies of the electric utility subsidiaries. As of December 31, 2021, the consolidated common stock equity of HEI’s electric utility subsidiaries was 57% of their total capitalization (as calculated for purposes of the PUC Agreement). As of December 31, 2021, Hawaiian Electric and its subsidiaries had common stock equity of $2.3 billion of which approximately $919 million was not available for transfer to HEI in the form of dividends, loans or advances without regulatory approval. The ability of ASB to make capital distributions to HEI and other affiliates is restricted under federal law. Subject to a limited exception for stock redemptions that do not result in any decrease in ASB’s capital and would improve ASB’s financial condition, ASB is prohibited from declaring any dividends, making any other capital distributions, or paying a management fee to a controlling person if, following the distribution or payment, ASB would be deemed to be undercapitalized, significantly undercapitalized or critically undercapitalized. ASB is required to notify the FRB and OCC prior to making any capital distribution (including dividends) to HEI (through ASB Hawaii). All dividends are subject to review by the OCC and FRB and receipt of a letter from the FRB communicating the agencies’ non-objection to the payment of any dividend ASB proposes to declare and pay to ASB Hawaii and HEI. Generally, the FRB and OCC may disapprove or deny ASB’s request to make a capital distribution if the proposed distribution will cause ASB to become undercapitalized, or the proposed distribution raises safety and soundness concerns, or the proposed distribution violates a prohibition contained in any statute, regulation or agreement between ASB and the OCC. As of December 31, 2021, in order to maintain its “well-capitalized” position, ASB could not transfer approximately $232 million of net assets to HEI. HEI and its subsidiaries are also subject to debt covenants, preferred stock resolutions and the terms of guarantees that could limit their respective abilities to pay dividends. The Company does not expect that the regulatory and contractual restrictions applicable to HEI and/or its subsidiaries will significantly affect the operations of HEI or its ability to pay dividends on its common stock. |
Significant group concentration
Significant group concentrations of credit risk | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Significant group concentrations of credit risk | Note 15 · Significant group concentrations of credit risk Most of the Company’s business activity is with customers located in the State of Hawaii. The Utilities are regulated operating electric public utilities engaged in the generation, purchase, transmission, distribution and sale of electricity on the islands of Oahu, Hawaii, Maui, Lanai and Molokai in the State of Hawaii. The Utilities provide the only electric public utility service on the islands they serve. The Utilities extend credit to customers, all of whom reside or conduct business in the State of Hawaii. See Note 3 of the Consolidated Financial Statements for a discussion of the Utilities’ major customers. The International Brotherhood of Electrical Workers Local 1260 represents roughly half of the Utilities’ workforce covered by a collective bargaining agreement that expires on October 31, 2024. Most of ASB’s financial instruments are based in the State of Hawaii, except for the investment securities it owns. Substantially all real estate loans are collateralized by real estate in Hawaii. ASB’s policy is to require mortgage insurance on all real estate loans with a loan to appraisal ratio in excess of 80% at origination. Pacific Current’s investments are in projects located in the State of Hawaii since its strategy is focused on investing in non-regulated renewable energy and sustainable infrastructure in the State of Hawaii. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Note 16 · Fair value measurements Fair value measurement and disclosure valuation methodology. The following are descriptions of the valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial instruments not carried at fair value: Short-term borrowings—other than bank . The carrying amount of short-term borrowings approximated fair value because of the short maturity of these instruments. Investment securities . The fair value of ASB’s investment securities is determined quarterly through pricing obtained from independent third-party pricing services or from brokers not affiliated with the trade. Non-binding broker quotes are infrequent and generally occur for new securities that are settled close to the month-end pricing date. The third-party pricing vendors ASB uses for pricing its securities are reputable firms that provide pricing services on a global basis and have processes in place to ensure quality and control. The third-party pricing services use a variety of methods to determine the fair value of securities that fall under Level 2 of ASB’s fair value measurement hierarchy. Among the considerations are quoted prices for similar securities in an active market, yield spreads for similar trades, adjustments for liquidity, size, collateral characteristics, historic and generic prepayment speeds, and other observable market factors. To enhance the robustness of the pricing process, ASB will on a quarterly basis compare its standard third-party vendor’s price with that of another third-party vendor. If the prices are within an acceptable tolerance range, the price of the standard vendor will be accepted. If the variance is beyond the tolerance range, an evaluation will be conducted by ASB and a challenge to the price may be made. Fair value in such cases will be based on the value that best reflects the data and observable characteristics of the security. In all cases, the fair value used will have been independently determined by a third-party pricing vendor or non-affiliated broker. The fair value of the mortgage revenue bonds is estimated using a discounted cash flow model to calculate the present value of future principal and interest payments and, therefore is classified within Level 3 of the valuation hierarchy. Loans held for sale . Residential and commercial loans are carried at the lower of cost or market and are valued using market observable pricing inputs, which are derived from third party loan sales and, therefore, are classified within Level 2 of the valuation hierarchy. Loans held for investment . Fair value of loans held for investment is derived using a discounted cash flow approach which includes an evaluation of the underlying loan characteristics. The valuation model uses loan characteristics which includes product type, maturity dates and the underlying interest rate of the portfolio. This information is input into the valuation models along with various forecast valuation assumptions including prepayment forecasts, to determine the discount rate. These assumptions are derived from internal and third party sources. Since the valuation is derived from model-based techniques, ASB includes loans held for investment within Level 3 of the valuation hierarchy. 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 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Total December 31, 2021 Financial assets HEI consolidated Available-for-sale investment securities $ 2,574,618 $ — $ 2,559,191 $ 15,427 $ 2,574,618 Held-to-maturity investment securities 522,270 — 510,474 — 510,474 Loans, net 5,150,388 — 10,403 5,218,121 5,228,524 Mortgage servicing rights 9,950 — — 14,480 14,480 Derivative assets 57,377 — 909 — 909 Financial liabilities HEI consolidated Deposit liabilities 423,976 — 442,361 — 442,361 Short-term borrowings—other than bank 53,998 — 53,998 — 53,998 Other bank borrowings 88,305 — 88,304 — 88,304 Long-term debt, net—other than bank 2,321,937 — 2,624,130 — 2,624,130 Derivative liabilities 57,000 11 5,271 — 5,282 Hawaiian Electric consolidated Long-term debt, net 1,676,402 — 1,955,710 — 1,955,710 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: December 31 2021 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 $ — $ 2,437,923 $ — $ — $ 1,849,559 $ — U.S. Treasury and federal agency obligations — 90,090 — — 62,322 — Corporate bonds — 31,178 — — 31,351 — Mortgage revenue bonds — — 15,427 — — 27,185 $ — $ 2,559,191 $ 15,427 $ — $ 1,943,232 $ 27,185 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 638 $ — $ — $ 4,536 $ — Interest rate swap (Other segment) 2 — 271 — — — — $ — $ 909 $ — $ — $ 4,536 $ — Derivative liabilities Forward commitments (bank segment) 1 $ 11 $ — $ — $ 500 $ — $ — Interest rate swap (Other segment) 2 — 5,271 — — 4,530 — $ 11 $ 5,271 $ — $ 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. There were no transfers of financial assets and liabilities between Level 1 and Level 2 of the fair value hierarchy during the years ended December 31, 2021 and 2020. The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (in thousands) 2021 2020 Mortgage revenue bonds Balance, January 1 $ 27,185 $ 28,597 Principal payments received (11,758) (1,641) Purchases — 229 Unrealized gain (loss) included in other comprehensive income — — Balance, December 31 $ 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 December 31, 2021, the weighted average discount rate was 2.07% 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. As of December 31, 2021, there were no financial instruments measured at fair value on a nonrecurring basis. The carrying value of assets measured at fair value on a nonrecurring basis were as follows: Fair value measurements using (in thousands) Balance Level 1 Level 2 Level 3 December 31, 2020 Loans $ 387 $ — $ — $ 387 Mortgage servicing rights 3,001 — — 3,001 For 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 (dollars in thousands) Fair value Valuation technique Significant unobservable input Range Weighted 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. |
SCHEDULE I - CONDENSED FINANCIA
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) CONDENSED BALANCE SHEETS December 31 2021 2020 (dollars in thousands) Assets Cash and cash equivalents $ 479 $ 299 Accounts receivable 873 738 Property, plant and equipment, net 2,052 2,456 Deferred income tax assets 17,000 14,236 Other assets and intercompany receivables 15,940 18,726 Investments in subsidiaries, at equity 3,025,729 2,893,781 Total assets $ 3,062,073 $ 2,930,236 Liabilities and shareholders’ equity Liabilities Accounts payable $ 914 $ 673 Interest payable 2,238 2,918 Commercial paper 53,998 64,491 Short-term debt, net — 14,909 Long-term debt, net 548,480 449,145 Retirement benefits liability 26,340 31,688 Other 39,219 28,910 Total liabilities 671,189 592,734 Shareholders’ equity Preferred stock, no par value, authorized 10,000,000 shares; issued: none — — Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 109,311,785 shares and 109,181,124 shares at December 31, 2021 and 2020, respectively 1,685,496 1,678,368 Retained earnings 757,921 660,398 Accumulated other comprehensive loss, net of tax benefits (52,533) (1,264) Total shareholders’ equity 2,390,884 2,337,502 Total liabilities and shareholders’ equity $ 3,062,073 $ 2,930,236 SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) CONDENSED STATEMENTS OF INCOME Years ended December 31 2021 2020 2019 (in thousands) Revenues $ 105 $ 208 $ 777 Equity in net income of subsidiaries 278,743 227,098 246,005 Expenses: Operating, administrative and general 24,006 20,731 19,195 Depreciation of property, plant and equipment 414 485 570 Taxes, other than income taxes 514 654 570 Total expenses 24,934 21,870 20,335 Income before interest expense and income tax benefits 253,914 205,436 226,447 Retirement defined benefits expense—other than service costs (114) 634 442 Interest expense 18,444 18,237 17,930 Income before income tax benefits 235,584 186,565 208,075 Income tax benefits 10,582 11,259 9,807 Net income $ 246,166 $ 197,824 $ 217,882 HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) STATEMENTS OF COMPREHENSIVE INCOME STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY Incorporated by reference are HEI and Subsidiaries’ Statements of Consolidated Comprehensive Income and Consolidated Statements of Changes in Shareholders’ Equity in Part II, Item 8. SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) CONDENSED STATEMENTS OF CASH FLOWS Years ended December 31 2021 2020 2019 (in thousands) Net cash provided by operating activities $ 154,151 $ 134,363 $ 131,120 Cash flows from investing activities Increase in note receivable from subsidiary — — (1,187) Decrease in note receivable from subsidiary — 22,719 — Capital expenditures (10) (20) (47) Investments in subsidiaries (76,232) (42,664) (38,935) Other 180 2,435 (1,001) Net cash used in investing activities (76,062) (17,530) (41,170) Cash flows from financing activities Net increase (decrease) in short-term borrowings with original maturities of three months or less (10,493) (32,232) 47,731 Proceeds from issuance of short-term debt — 65,000 — Repayment of short-term debt (15,000) (50,000) — Proceeds from issuance of long-term debt 150,000 50,000 — Repayment of long-term debt (50,000) — — Proceeds from issuance of syndicated credit facility — 66,300 — Repayment of syndicated credit facility — (66,300) — Withheld shares for employee taxes on vested share-based compensation (2,006) (5,700) (997) Common stock dividends (148,643) (144,096) (139,463) Other (1,767) (459) (10) Net cash used in financing activities (77,909) (117,487) (92,739) Net increase (decrease) in cash and equivalents 180 (654) (2,789) Cash and cash equivalents, January 1 299 953 3,742 Cash and cash equivalents, December 31 $ 479 $ 299 $ 953 NOTES TO CONDENSED FINANCIAL INFORMATION Basis of Presentation The “Notes to Consolidated Financial Statements” in Part II, Item 8 should be read in conjunction with the above HEI (Parent Company) financial statements. All HEI subsidiaries are reflected in the Condensed Financial Statements under the equity method. Income taxes for equity method investments are included in “Equity in net income of subsidiaries.” Long-term debt The components of long-term debt, net, were as follows: December 31 2021 2020 (dollars in thousands) HEI 2.99% term loan, due 2022 $ 150,000 $ 150,000 HEI 5.67% senior note, due 2021 — 50,000 HEI 3.99% senior note, due 2023 50,000 50,000 HEI 4.58% senior notes, due 2025 50,000 50,000 HEI 4.72% senior notes, due 2028 100,000 100,000 HEI 2.82% senior notes, due 2028 24,000 — HEI 2.48% senior notes, due 2028 30,000 — HEI 2.98% senior notes, due 2030 50,000 50,000 HEI 3.15% senior notes, due 2031 51,000 — HEI 2.78% senior notes, due 2031 25,000 — HEI 3.74% senior notes, due 2051 20,000 — Less unamortized debt issuance costs (1,520) (855) Long-term debt, net $ 548,480 $ 449,145 The aggregate payments of principal required within five years after December 31, 2021 on long-term debt are $150 million in 2022, $50 million in 2023, nil in 2024, $50 million in 2025, nil for 2026, and $300 million thereafter. Income taxes The Company’s financial reporting policy for income tax allocations is based upon a separate entity concept whereby each subsidiary provides income tax expense (or benefits) as if each were a separate taxable entity. The difference between the aggregate separate tax return income tax provisions and the consolidated financial reporting income tax provision is charged or credited to HEI’s separate tax provision. Dividends from HEI subsidiaries In 2021, 2020 and 2019, cash dividends received from subsidiaries were $172 million, $145 million and $157 million, respectively. Supplemental disclosures of noncash activities In 2021, 2020 and 2019, $2.1 million, $2.3 million and $2.3 million, respectively, of HEI accounts receivable from ASB Hawaii were reduced with a corresponding reduction in HEI notes payable to ASB Hawaii in noncash transactions. In 2021, 2020 and 2019, $2.1 million, $2.3 million and $2.3 million, respectively, were contributed as equity by HEI into ASB Hawaii with a corresponding increase in HEI notes payable to ASB Hawaii in noncash transactions. Under the HEI DRIP, common stock dividends reinvested by shareholders in HEI common stock in noncash transactions was immaterial for 2021, 2020 and 2019 as HEI satisfied the share purchase requirements of the DRIP in 2021, 2020 and 2019 through open market purchases of its common stock rather than new issuances. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2021, 2020 and 2019 Col. A Col. B Col. C Col. D Col. E (in thousands) Additions Description Balance Charged to Charged Deductions Balance at 2021 Allowance for uncollectible accounts – electric utility $ 17,809 $ 4,183 $ 11,795 (a) $ 7,687 (b) $ 26,100 2020 Allowance for uncollectible accounts – electric utility $ 1,377 $ 2,100 $ 18,041 (a) $ 3,709 (b) $ 17,809 2019 Allowance for uncollectible accounts – electric utility $ 1,480 $ 2,106 $ 795 (a) $ 3,004 (b) $ 1,377 (a) Includes recoveries, as well as $10,700 and $16,700 of bad debt expenses for 2021 and 2020, respectively, that have been deferred to regulatory assets pursuant to a PUC order as the recovery is probable. Total deferred bad debt expense of $10,700 in 2021 is net of a $2,000 reversal associated with customer bill credits to be provided under the Utilities’ bill forgiveness program. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ significantly from those estimates. |
Use of estimates | Material estimates that are particularly susceptible to significant change for HEI and its subsidiaries (collectively, the Company) include the amounts reported as fair value for investment securities (ASB only); pension and other postretirement benefit obligations; contingencies and litigation; income taxes; regulatory assets and liabilities (Utilities only); electric utility unbilled revenues (Utilities only); asset retirement obligations (Utilities only); and allowance for credit losses (ASB only). |
Consolidation | The HEI consolidated financial statements include the accounts of HEI and its subsidiaries. The Hawaiian Electric consolidated financial statements include the accounts of Hawaiian Electric and its subsidiaries. When HEI or Hawaiian Electric has a controlling financial interest in another entity (usually, majority voting interest), that entity is consolidated. Investments in companies over which the Company or the Utilities have the ability to exercise significant influence, but not control, are accounted for using the equity method. The consolidated financial statements exclude variable interest entities (VIEs) when the Company or the Utilities are not the primary beneficiaries. Significant intercompany amounts are eliminated in consolidation |
Cash and cash equivalents | The Utilities consider cash on hand, deposits in banks, money market accounts, certificates of deposit, short-term commercial paper of non-affiliates and liquid investments (with original maturities of three months or less) to be cash and cash equivalents. The Company considers the same items to be cash and cash equivalents as well as ASB’s deposits with the Federal Home Loan Bank (FHLB), federal funds sold (excess funds that ASB loans to other banks overnight at the federal funds rate) and securities purchased under resale agreements with original maturities of three months or less. Additionally, ASB is required by the Federal Reserve System to maintain noninterest-bearing cash reserves equal to a percentage of certain deposits. |
Restricted cash | The Utilities consider funds on deposit with trustees, which represent the undrawn proceeds from the issuance of special purpose revenue bonds, to be restricted cash because these funds are available only to finance (or reimburse payment of) approved capital expenditures. In addition to the Utilities’ funds on deposit with trustees, the Company considers cash held by trustees related to non-recourse loans at Pacific Current subsidiaries to be restricted cash. |
Property, plant and equipment | Property, plant and equipment are reported at cost. Self-constructed electric utility plant includes engineering, supervision, administrative and general costs and an allowance for the cost of funds used during the construction period. These costs are recorded in construction in progress and are transferred to utility plant when construction is completed and the facilities are either placed in service or become useful for public utility purposes. Costs for betterments that make utility plant more useful, more efficient, of greater durability or of greater capacity are also capitalized. Upon the retirement or sale of electric utility plant, generally no gain or loss is recognized. The cost of the plant retired is charged to accumulated depreciation. Amounts collected from customers for cost of removal are included in regulatory liabilities. |
Depreciation | Depreciation is computed primarily using the straight-line method over the estimated lives of the assets being depreciated. Electric utility plant additions in the current year are depreciated beginning January 1 of the following year in accordance with rate-making. Electric utility plant has lives ranging from 16 to 51 years for production plant, from 10 to 79 years for transmission and distribution plant, and from 5 to 50 years for general plant. |
Retirement benefits | Pension and other postretirement benefit costs are charged primarily to expense and electric utility plant (in the case of the Utilities). Funding for the Company’s qualified pension plans (Plans) is based on actuarial assumptions adopted by the Pension Investment Committee administering the Plans. The participating employers contribute amounts to pension trusts for the Plans in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA), including changes promulgated by the Pension Protection Act of 2006, and considering the deductibility of contributions under the Internal Revenue Code. The Company generally funds at least the net periodic pension cost during the year, subject to ERISA minimum and Internal Revenue Code limits and targeted funded status.Certain health care and/or life insurance benefits are provided to eligible retired employees and the employees’ beneficiaries and covered dependents. The Company generally funds the net periodic postretirement benefit costs other than pensions (except for executive life) for postretirement benefits other than pensions (OPEB), while maximizing the use of the most tax-advantaged funding vehicles, subject to cash flow requirements and reviews of the funded status with the consulting actuary. |
Environmental expenditures | The Company and the Utilities are subject to numerous federal and state environmental statutes and regulations. In general, environmental contamination treatment costs are charged to expense. Environmental costs are capitalized if the costs extend the life, increase the capacity, or improve the safety or efficiency of property; the costs mitigate or prevent future environmental contamination; or the costs are incurred in preparing the property for sale. Environmental costs are either capitalized or charged to expense when environmental assessments and/or remedial efforts are probable and the cost can be reasonably estimated. The Utilities review their sites and measure the liability quarterly by assessing a range of reasonably likely costs of each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. |
Income taxes | Deferred income tax assets and liabilities are established for the temporary differences between the financial reporting bases and the tax bases of the Company’s and the Utilities’ assets and liabilities at federal and state tax rates expected to be in effect when such deferred tax assets or liabilities are realized or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. HEI and the Utilities’ investment tax credits are deferred and amortized over the estimated useful lives of the properties to which the credits relate (and for the Utilities, this treatment is in accordance with Accounting Standards Codification (ASC) Topic 980, “Regulated Operations”). The Utilities are included in the consolidated income tax returns of HEI. However, income tax expense has been computed for financial statement purposes as if each utility filed a separate income tax return and Hawaiian Electric filed a consolidated Hawaiian Electric income tax return. Governmental tax authorities could challenge a tax return position taken by the Company. The Company and the Utilities use a “more-likely-than-not” recognition threshold and measurement standard for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. |
Fair value measurements | Fair value estimates are estimates of the price that would be received to sell an asset, or paid upon the transfer of a liability, in an orderly transaction between market participants at the measurement date. The fair value estimates are generally determined based on assumptions that market participants would use in pricing the asset or liability and are based on market data obtained from independent sources. However, in certain cases, the Company and the Utilities use their own assumptions about market participant assumptions based on the best information available in the circumstances. These valuations are estimates at a specific point in time, based on relevant market information, information about the financial instrument and judgments regarding future expected loss experience, economic conditions, risk characteristics of various financial instruments and other factors. These estimates do not reflect any premium or discount that could result if the Company or the Utilities were to sell its entire holdings of a particular financial instrument at one time. Because no active trading market exists for a portion of the Company’s and the Utilities’ financial instruments, fair value estimates cannot be determined with precision. Changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses could have a significant effect on fair value estimates, but have not been considered in making such estimates. The Company and the Utilities group their financial assets measured at fair value in three levels outlined as follows: Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Classification in the hierarchy is based upon the lowest level input that is significant to the fair value measurement of the asset or liability. For instruments classified in Level 1 and 2 where inputs are primarily based upon observable market data, there is less judgment applied in arriving at the fair value. For instruments classified in Level 3, management judgment is more significant due to the lack of observable market data. The Company reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in fair value measurements may result in a reclassification between the fair value hierarchy levels and are recognized based on period-end balances. Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include mortgage servicing rights accounted for by the amortization method, loan impairments for certain loans, real estate acquired in settlement of loans, goodwill and asset retirement obligations (AROs). 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 |
Earnings per share (HEI only) | Basic earnings per share (EPS) is computed by dividing net income for common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that dilutive common shares for stock compensation is added to the denominator. |
Impairment of long-lived assets and long-lived assets to be disposed of | The Company and the Utilities review long-lived assets and certain identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. |
Recent accounting pronouncements | 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. Financial Disclosures . In August 2021, the FASB issued ASU 2021-06 , “Presentation of Financial Statements (Topic 205), Financial Services-Depository and Lending (Topic 942), and Financial Services-Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33- 10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants.” This ASU incorporates recent SEC rule changes into the FASB Codification, including SEC Final Rule Releases No. 33-10786, “Amendments to Financial Disclosures about Acquired and Disposed Businesses ” , and No. 33-10835, “Update of Statistical Disclosures for Bank and Savings and Loan Registrants.” The amendments in this update are effective upon addition to the FASB Codification and the Company determined that this guidance does not have a material impact on the Company’s consolidated financial statements. |
Electric utility | |
Regulation by the Public Utilities Commission of the State of Hawaii (PUC) | The Utilities are regulated by the PUC and account for the effects of regulation under FASB ASC Topic 980, “Regulated Operations.” As a result, the Utilities’ financial statements reflect assets, liabilities, revenues and expenses based on current cost-based rate-making regulations (see Note 3—“Regulatory assets and liabilities”). Their continued accounting under ASC Topic 980 generally requires that rates are established by an independent, third-party regulator; rates are designed to recover the costs of providing service; and it is reasonable to assume that rates can be charged to, and collected from, customers. Management believes that the operations of the Utilities, including the impact of the newly approved PBR Framework, currently satisfy the criteria under ASC Topic 980.The rate schedules of the Utilities include energy costs recovery clauses (ECRCs) under which electric rates are adjusted for changes in the weighted-average price paid for fuel oil and certain components of purchased power, and the relative amounts of company-generated power and purchased power. The rate schedules also include purchased power adjustment clauses (PPACs) under which the remaining purchase power expenses are recovered through surcharge mechanisms. The amounts collected through the ECRCs and PPACs are required to be reconciled quarterly. |
Accounts receivable | Accounts receivable are recorded at the invoiced amount. The Utilities generally assess a late payment charge on balances unpaid from the previous month. The allowance for doubtful accounts is the Utilities’ best estimate of the amount of expected credit losses in the Utilities’ existing accounts receivable. |
Electric utility revenues | Revenues related to electric service are generally recorded when service is rendered and include revenues applicable to energy consumed in the accounting period but not yet billed to the customers. The Utilities also record revenue under a decoupling mechanism. |
Repairs and maintenance costs | Repairs and maintenance costs for overhauls of generating units are generally expensed as they are incurred. |
Allowance for funds used during construction (AFUDC) | AFUDC represents the estimated costs of debt (i.e., interest) and equity funds used to finance plant construction. AFUDC is credited on the statement of income and charged to construction in progress on the balance sheet. If a project under construction is delayed for an extended period of time, AFUDC on the delayed project may be stopped after assessing the causes of the delay and probability of recovery. The tax gross up of the allowance for equity funds used during construction is credited to income taxes on the statement of income and charged to a regulatory asset. This gross up, net of amortization of the regulatory asset, is reflected in income tax expense. |
Asset retirement obligations (AROs) | AROs are accounted for in accordance with ASC 410-20, Asset Retirement Obligations. AROs are recognized at present value of expected costs to retire long-lived assets from service, provided a legal obligation exists and a reasonable estimate of the fair value and the settlement date can be made. In the subsequent period, the liability is accreted to its future value while the asset retirement cost is depreciated over the estimated useful life of the underlying asset. The Utilities’ recognition of AROs have no impact on earnings, as the cost of the AROs are recovered over the life of the asset through depreciation. AROs recognized by the Utilities relate to legal obligations with the retirement of plant and equipment, including removal of asbestos and other hazardous materials. |
Bank (HEI only) | |
Investment securities | Investments in debt securities are classified as held-to-maturity (HTM), trading or available-for-sale (AFS). ASB determines the appropriate classification at the time of purchase. Debt securities that ASB intends to and has the ability to hold to maturity are classified as HTM securities and reported at amortized cost. Marketable debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Marketable debt securities not classified as either HTM or trading securities are classified as AFS and reported at fair value. Unrealized gains and losses for AFS securities are excluded from earnings and reported on a net basis in accumulated other comprehensive income (AOCI) until realized. Interest income is recorded on an accrual basis. Discounts and premiums on securities are accreted or amortized into interest income using the interest method over the remaining contractual lives of the agency obligation securities and the estimated lives of the mortgage-backed securities adjusted for anticipated prepayments. ASB uses actual prepayment experience and estimates of future prepayments to determine the constant effective yield necessary to apply the interest method of income recognition. The discounts and premiums on the agency obligations portfolio are accreted or amortized on a prospective basis using expected contractual cash flows. The discounts and premiums on the mortgage-backed securities portfolio are accreted or amortized on a retrospective basis using changes in anticipated prepayments. This method requires a retrospective adjustment of the effective yield each time ASB changes the estimated life as if the new estimate had been known since the original acquisition date of the securities. Estimates of future prepayments are based on the underlying collateral characteristics and historic or projected prepayment behavior of each security. The specific identification method is used in determining realized gains and losses on the sales of securities. AFS debt securities with unrealized losses are reviewed quarterly. ASB will first assess whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either criteria is met, the security’s amortized cost basis is written down to fair value through income. For AFS securities that do not meet the aforementioned criteria, ASB evaluates whether the decline in fair value is the result of a credit loss or other factors. The determination of whether or not a credit loss exists is based on consideration of the cash flows expected to be collected from the debt security. ASB develops these expectations after considering various factors such as agency ratings, the financial condition of the issuer, payment history, payment structure of the security, industry and market conditions, underlying collateral and other factors which may be relevant based on the facts and circumstances pertaining to individual securities. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit losses. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. As of December 31, 2021, 2020 and 2019, there was no indicated impairment as ASB expects to collect the contractual cash flows for these investments. Held-to-maturity debt securities are assessed periodically to determine if a valuation allowance is necessary to absorb credit losses expected to occur over the remaining contractual life of the securities. The carrying amount of held-to-maturity debt securities is presented net of the valuation allowance for credit losses when such an allowance is deemed necessary. Stock in FHLB is carried at cost and is reviewed at least quarterly for impairment, with valuation adjustments recognized in noninterest income. |
Loans | ASB carries loans at amortized cost less the allowance for credit losses, loan origination fees (net of direct loan origination costs), commitment fees and purchase premiums and discounts. Interest on loans is credited to income as it is earned. Discounts and premiums are accreted or amortized over the life of the loans using the interest method.Loan origination fees (net of direct loan origination costs) are deferred and recognized as an adjustment in yield over periods not exceeding the contractual life of the loan using the interest method or taken into income when the loan is paid off or sold. Nonrefundable commitment fees (net of direct loan origination costs, if applicable) received for commitments to originate or purchase loans are deferred and, if the commitment is exercised, recognized as an adjustment of yield over the life of the loan using the interest method. Nonrefundable commitment fees received for which the commitment expires unexercised are recognized as income upon expiration of the commitment. |
Loans held for sale and gain on sale of loans | Loans held for sale are stated at the lower of cost or estimated fair value on an aggregate basis. Premiums, discounts and net deferred loan fees are not amortized while a loan is classified as held for sale. A sale is recognized only when the consideration received is other than beneficial interests in the assets sold and control over the assets is transferred irrevocably to the buyer. Gains or losses on sales of loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the allocated basis of the loans sold. |
Allowance for credit losses | The allowance for credit losses (ACL) represents management’s estimate of expected credit losses over the expected contractual life of the related loans as of the balance sheet date. Contractual terms are adjusted for expected prepayments but are not extended for expected extensions, renewals or modifications except in circumstances where ASB reasonably expects to execute a troubled debt restructuring with the borrower or where certain extension or renewal options are embedded in the original contract and not unconditionally cancellable by the Bank. Accrued interest receivables on loans are presented in the Consolidated Financial Statements as a component of other assets. When accrued interest is deemed to be uncollectible (typically when a loan is placed on nonaccrual status), interest income is reversed against interest income on loans. ASB follows established policies for placing loans on nonaccrual status, so uncollectible accrued interest receivable is reversed in a timely manner. As a result, the Bank has elected not to measure an allowance for credit losses for accrued interest receivables. Credit losses are charged and recoveries are credited to the ACL. The ACL is maintained at a level the Bank considers to be adequate and is based on ongoing assessments and evaluations of the collectability of loans. The Bank’s expected credit loss models consider historical credit loss experience, current market and economic conditions, and forecasted changes in market and economic conditions if such forecasts are considered reasonable and supportable. Generally, the Bank considers its forecasts to be reasonable and supportable for a period of up to a year from the estimation date. For periods beyond the reasonable and supportable forecast period, expected credit losses are estimated by reverting to historical loss information without adjustment for changes in economic conditions. The Bank evaluates the length of its reasonable and supportable forecast period, its reversion period and reversion methodology at least annually, or more often if warranted by economic conditions or other circumstances. The Bank’s methodology for determining the ACL includes an estimate of expected credit losses on a collective basis for groups of loans with similar risk characteristics and specific allowances for loans which are individually evaluated. ASB disaggregates its portfolio loans into portfolio segments for purposes of determining the allowance for credit losses. Commercial, commercial real estate, and commercial construction loans are defined as non-homogeneous loans and ASB utilizes a risk rating system for evaluating the credit quality of the loans. Non-homogeneous loans are also categorized into the regulatory asset quality classifications—Pass, Special Mention, Substandard, Doubtful, and Loss based on credit quality. ASB utilizes a numerical-based, risk rating “PD Model” that takes into consideration fiscal year-end financial information of the borrower and identified financial attributes including retained earnings, operating cash flows, interest coverage, liquidity and leverage that demonstrate a strong correlation with default to assign default probabilities at the borrower level. In addition, a loss given default (LGD) value is assigned to each loan to measure loss in the event of default based on loan specific features such as collateral that mitigates the amount of loss in the event of default. Residential, consumer and credit scored business loans are considered homogeneous loans, which are typically underwritten based on common, uniform standards. For the homogeneous portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. ASB supplements performance data with external credit bureau data and credit scores such as the Fair Isaac Corporation (FICO) score on a quarterly basis. ASB has built portfolio loss models for each major segment based on the combination of internal and external data to predict the probability of default at the loan level. The Bank also considers qualitative factors in determining the ACL. Qualitative factors are used to capture characteristics in the portfolio that impact expected credit losses but that are not fully captured within the Bank’s expected credit loss models. These include but are not limited to adjustments for changes in policies or procedures in underwriting, monitoring or collections, economic conditions, portfolio mix, lending and risk management personnel, results of internal audit and quality control reviews, collateral values and any concentrations of credit. The reserve for unfunded commitments is maintained at a level believed by management to cover expected losses related to unfunded credit facilities and is included in accounts payable and other liabilities in the consolidated balance sheets. The determination of the adequacy of the reserve is based upon an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the allowance for credit losses, as discussed above. Net adjustments to the reserve for unfunded commitments are included in the provision for credit losses in the consolidated statements of income. The allowance for credit losses is based on currently available information and historical experience, and future adjustments may be required from time to time to the allowance for credit losses based on new information and changes that occur (e.g., due to changes in economic conditions, particularly in Hawaii). Actual losses could differ from management’s estimates, and these differences and subsequent adjustments could be material. |
Nonperforming loans | Loans are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if the probability of collection is insufficient to warrant further accrual. All interest that is accrued but not collected is reversed. A loan may be returned to accrual status if (i) principal and interest payments have been brought current and repayment of the remaining contractual principal and interest is expected to be made, (ii) the loan has otherwise become well-secured and in the process of collection, or (iii) the borrower has been making regularly scheduled payments in full for the prior six months and it is reasonably assured that the loan will be brought fully current within a reasonable period. Cash receipts on nonaccruing loans are generally applied to reduce the unpaid principal balance. Loans considered to be uncollectible are charged-off against the allowance for credit losses. The amount and timing of charge-offs on loans includes consideration of the loan type, length of delinquency, insufficiency of collateral value, lien priority and the overall financial condition of the borrower. Recoveries on loans previously charged-off are credited back to the allowance for credit losses. Loans that have been charged-off against the allowance for credit losses are periodically monitored to evaluate whether further adjustments to the allowance are necessary. Loans in the commercial and commercial real estate portfolio are charged-off when the loan is risk rated “Doubtful” or “Loss.” The loan or a portion thereof is determined to be uncollectible after considering the borrower’s overall financial condition and collateral deficiency. A commercial or commercial real estate loan is considered uncollectible when: (a) the borrower is delinquent in principal or interest 90 days or more; (b) significant improvement in the borrower’s repayment capacity is doubtful; and/or (c) collateral value is insufficient to cover outstanding indebtedness and no other viable assets or repayment sources exist. Loans in the residential mortgage and home equity portfolios are charged-off when the loan or a portion thereof is determined to be uncollectible after considering the borrower’s overall financial condition and collateral deficiency. Such loan is considered uncollectible when: (a) the borrower is delinquent in principal or interest 180 days or more; (b) it is probable that collateral value is insufficient to cover outstanding indebtedness and no other viable assets or repayment sources exist; (c) notification of the borrower’s bankruptcy is received or the borrower’s debt is discharged in bankruptcy and the loan is not reaffirmed; or (d) in cases where ASB is in a subordinate position to other debt, the senior lien holder has foreclosed and ASB’s junior lien is extinguished. Other consumer loans are generally charged-off when the balance becomes 120 days delinquent. |
Loans modified in a troubled debt restructuring | Loans are considered to have been modified in a troubled debt restructuring (TDR) when, due to a borrower’s financial difficulties, ASB makes concessions to the borrower that it would not otherwise consider for a non-troubled borrower. Modifications may include interest rate reductions, interest only payments for an extended period of time, protracted terms such as amortization and maturity beyond the customary length of time found in the normal market place, and other actions intended to minimize economic loss and to provide alternatives to foreclosure or repossession of collateral. Generally, a nonaccrual loan that has been modified in a TDR remains on nonaccrual status until the borrower has demonstrated sustained repayment performance for a period of six |
Real estate acquired in settlement of loans | ASB records real estate acquired in settlement of loans at fair value, less estimated selling expenses. ASB obtains appraisals based on recent comparable sales to assist management in estimating the fair value of real estate acquired in settlement of loans. Subsequent declines in value are charged to expense through a valuation allowance. Costs related to holding real estate are charged to operations as incurred. |
Goodwill | Goodwill is initially recorded as the excess of the purchase price over the fair value of the net assets acquired in a business combination and is subsequently evaluated at least annually for impairment during the fourth quarter. At December 31, 2021 and 2020, the amount of goodwill was $82.2 million. The goodwill relates to ASB and is the Company’s only intangible asset with an indefinite useful life.To determine if there was an impairment to the book value of goodwill pertaining to ASB, the fair value of ASB was estimated using a valuation method based on the market and income approaches. The market approach considers publicly traded financial institutions and measures the institutions’ market values as a multiple to (1) net income and (2) tangible book equity. The market approach also looks at sale transactions to determine the fair value under this approach. The income approach uses a discounted cash flow method to value a company on a going concern basis and is based on the concept that the future benefits derived from a particular company can be measured by its sustainable after-tax cash flows in the future. ASB used its forecasted net income and estimated cost savings if the Bank were acquired and applied a discount rate to calculate its discounted cash flows. A capitalization of earnings method was used to calculate a terminal value for the discounted cash flow method. The income approach was weighted 75%, the publicly traded company valuation method was weighted 20% and the sale transaction valuation method was weighted 5%. More weight was given to the income approach as this approach uses the projected performance of ASB in the stressed environment and would be more indicative of the current fair value of the Bank. |
Mortgage banking | Mortgage loans held for sale are stated at the lower of cost or estimated fair value on an aggregate basis. Premiums, discounts and net deferred loan fees are not amortized while a loan is classified as held-for-sale. A sale is recognized only when the consideration received is other than beneficial interests in the assets sold and control over the assets is transferred irrevocably to the buyer. Gains or losses on sales of loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the allocated basis of the loans sold. ASB is obligated to subsequently repurchase a loan if the purchaser discovers a standard representation or warranty violation such as noncompliance with eligibility requirements, customer fraud or servicing violations. This primarily occurs during a loan file review. ASB considers and records a reserve for loan repurchases if appropriate. ASB recognizes a mortgage servicing asset when a mortgage loan is sold with servicing rights retained. This mortgage servicing right (MSR) is initially capitalized at its presumed fair value based on market data at the time of sale and accounted for in subsequent periods at the lower of amortized cost or fair value. Mortgage servicing assets or liabilities are included as a component of gain on sale of loans. Under ASC Topic 860, “Transfers and Servicing,” ASB amortizes the MSRs in proportion to and over the period of estimated net servicing income and assess for impairment at each reporting date. ASB’s MSRs are stratified based on predominant risk characteristics of the underlying loans including loan type such as fixed-rate 15- and 30-year mortgages and note rate in bands primarily of 50 to 100 basis points. For each stratum, fair value is calculated by discounting expected net income streams using discount rates that reflect industry pricing for similar assets. Expected net income streams are estimated based on industry assumptions regarding prepayment expectations and income and expenses associated with servicing residential mortgage loans for others. ASB uses a present value cash flow model using techniques described above to estimate the fair value of MSRs. Because observable market prices with exact terms and conditions may not be readily available, ASB compares the fair value of MSRs to an estimated value calculated by an independent third-party on a semi-annual basis. The third-party relies on both published and unpublished sources of market related assumptions and its own experience and expertise to arrive at a value. ASB uses the third-party value only to assess the reasonableness of fair value generated by the valuation model. Impairment is recognized through a valuation allowance for each stratum when the carrying amount exceeds fair value, with any associated provision recorded as a component of loan servicing fees included in “Revenues - bank” in the consolidated statements of income. A direct write-down is recorded when the recoverability of the valuation allowance is deemed to be unrecoverable. Loan servicing fee income represents income earned for servicing mortgage loans owned by investors. It includes mortgage servicing fees and other ancillary servicing income, net of guaranty fees. Servicing fees are generally calculated on the outstanding principal balances of the loans serviced and are recorded as income when earned. |
Tax credit investments | ASB invests in limited liability entities formed to operate qualifying affordable housing projects. The affordable housing investments provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. As a limited partner, ASB has no significant influence over the operations. These investments are initially recorded at the initial capital contribution with a liability recognized for the commitment to contribute additional capital over the term of the investment. ASB uses the proportional amortization method of accounting for its investments. Under the proportional amortization method, ASB amortizes the cost of its investments in proportion to the tax credits and other tax benefits it receives. The amortization, tax credits and tax benefits are reported as a component of income tax expense. For these limited liability entities, ASB assesses whether it is the primary beneficiary of the limited liability entity, which is a variable interest entity (VIE). The primary beneficiary of a VIE is determined to be the party that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Generally, ASB, as a limited partner, is not deemed to be the primary beneficiary as it does not meet the power criterion, i.e., no power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and no direct ability to unilaterally remove the general partner. |
Revenues | Revenue from contracts with customers. The revenues subject to Topic 606 include the Utilities’ electric energy sales revenue and the ASB’s transaction fees, as further described below. Electric Utilities . Electric energy sales . Electric energy sales represent revenues from the generation and transmission of electricity to customers under tariffs approved by the PUC. Transaction pricing for electricity is determined and approved by the PUC for each rate class and includes revenues from the base electric charges, which are composed of (1) the customer, demand, energy, and minimum charges, and (2) the power factor, service voltage, and other adjustments as provided in each rate and rate rider schedule. The Utilities satisfy performance obligations over time, i.e., the Utilities generate and transfer control of the electricity over time as the customer simultaneously receives and consumes the benefits provided by the Utilities’ performance. Payments from customers are generally due within 30 days from the end of the billing period. As electric bills to customers reflect the amount that corresponds directly with the value of the Utilities’ performance to date, the Utilities have elected to use the right to invoice practical expedient, which entitles them to recognize revenue in the amount they have the right to invoice. Bank . Bank fees. Bank fees are primarily transaction-based and are recognized when the transaction has occurred and the performance obligation satisfied. From time to time, customers will request a fee waiver and ASB may grant reversals of fees. Revenues are not recorded for the estimated amount of fee reversals for each period. Fees from other financial services - These fees primarily include debit card interchange income and fees, automated teller machine fees, credit card interchange income and fees, check ordering fees, wire fees, safe deposit rental fees, corporate/business fees, merchant income, online banking fees and international banking fees. Amounts paid to third parties for payment network expenses are included in this financial statement caption in ASB’s Statements of Income and Comprehensive Income Data (in Revenues—Bank financial statement caption of HEI’s Consolidated Statements of Income). Fee income on deposit liabilities - These fees primarily include “not sufficient funds” fees, monthly deposit account service charge fees, commercial account analysis fees and other deposit fees. Fee income on other financial products - These fees primarily include commission income from the sales of annuity, mutual fund, and life insurance products. ASB also offers a fee-based, managed account product in which income is based on a percentage of assets under management. Other Segment . Other sales. Other sales primarily consist of revenues from the generation and sale of renewable energy at fixed contractual prices per kWh to customers under power purchase agreements by Pacific Current subsidiaries. The performance obligation is satisfied over time as renewable energy is generated and control is transferred to the customer that simultaneously receives and consumes the benefits provided. Payments from customers are generally due within 30 days from the end of the billing period. The bill to customers reflect the amount that corresponds directly with the value of performance to date. Pacific Current has elected to use the right to invoice practical expedient, which entitles it to recognize revenue in the amount they have the right to invoice. |
Revenues from other sources | Revenues from other sources. Revenues from other sources not subject to Topic 606 are accounted for as follows: Electric Utilities . Regulatory revenues . Regulatory revenues primarily consist of revenues from the decoupling mechanism and cost recovery surcharges. Decoupling mechanism - Under the current decoupling mechanism, the Utilities are allowed to recover or obligated to refund the difference between actual revenue and the target revenue as determined by the PUC, collect annual revenue adjustment mechanism (ARA) and exceptional project recovery mechanism revenues, and recover or refund performance incentive mechanism penalties or rewards. These adjustments will be reflected in tariffs in future periods. Under the PBR framework, the accrued RBA revenues as of the preceding September 30 balance and the annual ARA amount are billed from January 1 through December 31 of each year, which is within 24 months following the end of the year in which they are recorded as required by the accounting standard for alternative revenue programs (see “Regulatory proceedings” in Note 3). Cost recovery surcharges - For the timely recovery of additional costs incurred, and reconciliation of costs and expenses included in tariffed rates, the Utilities recognize revenues under surcharge mechanisms approved by the PUC. These will be reflected in tariffs in future periods (e.g., ECRC and PPAC). Since revenue adjustments discussed above resulted from either agreements with the PUC or change in tax law, rather than contracts with customers, they are not subject to the scope of Topic 606. Also, see Notes 1, 3 and 12 of the Consolidated Financial Statements. The Utilities have elected to present these revenue adjustments on a gross basis, which results in the amounts being billed to customers presented in revenues from contracts with customers and the amortization of the related regulatory asset/liability as revenues from other sources. Depending on whether the previous deferral balance being amortized was a regulatory asset or regulatory liability, and depending on the size and direction of the current year deferral of surcharges and/or refunds to customers, it could result in negative regulatory revenue during the year. Utility pole attachment fees . These fees primarily represent revenues from third-party companies for their access to and shared use of Utilities-owned poles through licensing agreements. As the shared portion of the utility pole is functionally dependent on the rest of the structure, no distinct goods appear to exist. Therefore, these fees are not subject to the scope of Topic 606, but recognized in accordance with ASC Topic 610, Other Income . Bank . Interest and dividend income . Interest and fees on loans are recognized in accordance with ASC Topic 310, Receivables , including the related allowance for credit losses. Interest and dividends on investment securities are recognized in accordance with ASC Topic 320, Investments-Debt and Equity Securities. See Notes 1 and 4 of the Consolidated Financial Statements. Other bank noninterest income . Other bank noninterest income primarily consists of mortgage banking income and bank-owned life insurance income. Mortgage banking income - Mortgage banking income consists primarily of realized and unrealized gains on sale of loans accounted for pursuant to ASC Topic 860, Transfers and Servicing . Interest rate lock commitments and forward loan sales are considered derivatives and are accounted pursuant to ASC Topic 815, Derivatives and Hedging . Bank-Owned Life Insurance (BOLI) - The recognition of BOLI cash surrender value does not represent a contract with a customer and is accounted for in accordance with Emerging Issues Task Force Issue 06-05, Accounting for Purchases of Life Insurance-Determining the Amount that Could be Realized in Accordance with FASB Technical Bulletin No. 85-4, Accounting for Purchases of Life Insurance . |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of amounts in income tax expense related to investments in qualifying affordable housing projects | The table below summarizes the amounts in income tax expense related to ASB’s LIHTC investments: Years ended December 31 2021 2020 2019 (in millions) Amounts in income taxes related to low-income housing tax credit investments Amortization recognized in the provision for income taxes $ (10.3) $ (9.6) $ (7.9) Tax credits and other tax benefits recognized in the provision for income taxes 13.9 13.7 11.9 Net benefit to income tax expense $ 3.6 $ 4.1 $ 4.0 |
Segment financial information (
Segment financial information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment financial information | Segment financial information was as follows: (in thousands) Electric utility Bank Other Total 2021 Revenues from external customers $ 2,539,589 $ 306,398 $ 4,392 $ 2,850,379 Intersegment revenues (eliminations) 47 — (47) — Revenues 2,539,636 306,398 4,345 2,850,379 Depreciation and amortization 251,206 21,124 6,372 278,702 Interest expense, net 72,447 5,040 21,916 99,403 Income (loss) before income taxes 223,785 130,559 (43,481) 310,863 Income taxes (benefit) 44,148 29,325 (10,666) 62,807 Net income (loss) 179,637 101,234 (32,815) 248,056 Preferred stock dividends of subsidiaries 1,995 — (105) 1,890 Net income (loss) for common stock 177,642 101,234 (32,710) 246,166 Capital expenditures 1 292,000 11,131 11,393 314,524 Assets (at December 31, 2021) 6,491,625 9,181,603 149,409 15,822,637 2020 Revenues from external customers $ 2,265,281 $ 313,511 $ 983 $ 2,579,775 Intersegment revenues (eliminations) 39 — (39) — Revenues 2,265,320 313,511 944 2,579,775 Depreciation and amortization 256,479 29,349 4,950 290,778 Interest expense, net 67,794 11,114 20,900 99,808 Income (loss) before income taxes 211,753 69,271 (40,400) 240,624 Income taxes (benefit) 40,418 11,688 (11,196) 40,910 Net income (loss) 171,335 57,583 (29,204) 199,714 Preferred stock dividends of subsidiaries 1,995 — (105) 1,890 Net income (loss) for common stock 169,340 57,583 (29,099) 197,824 Capital expenditures 1 350,864 12,203 20,828 383,895 Assets (at December 31, 2020) 6,457,373 8,396,533 150,101 15,004,007 2019 Revenues from external customers $ 2,545,865 $ 327,917 $ 166 $ 2,873,948 Intersegment revenues (eliminations) 77 — (77) — Revenues 2,545,942 327,917 89 2,873,948 Depreciation and amortization 245,362 28,675 4,076 278,113 Interest expense, net 70,842 18,440 20,057 109,339 Income (loss) before income taxes 197,140 112,034 (37,765) 271,409 Income taxes (benefit) 38,305 23,061 (9,729) 51,637 Net income (loss) 158,835 88,973 (28,036) 219,772 Preferred stock dividends of subsidiaries 1,995 — (105) 1,890 Net income (loss) for common stock 156,840 88,973 (27,931) 217,882 Capital expenditures 1 419,898 24,175 13,447 457,520 Assets (at December 31, 2019) 6,388,682 7,233,017 123,552 13,745,251 |
Electric utility segment (Table
Electric utility segment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Electric Utility Subsidiary [Abstract] | |
Schedule of regulatory assets | Regulatory assets were as follows: December 31 2021 2020 (in thousands) Retirement benefit plans (balance primarily varies with plans’ funded statuses) $ 351,070 $ 592,644 Income taxes (1-55 years) 88,087 96,171 Decoupling revenue balancing account and RAM (1-2 years) 31,607 10,432 Unamortized expense and premiums on retired debt and equity issuances (1-18 years; 1-18 years remaining) 7,300 8,654 Vacation earned, but not yet taken (1 year) 14,255 15,665 COVID-19 related costs (to be determined by PUC) 27,839 18,032 Other (1-38 years remaining) 45,385 25,110 Total regulatory assets $ 565,543 $ 766,708 Included in: Current assets $ 66,664 $ 30,435 Long-term assets 498,879 736,273 Total regulatory assets $ 565,543 $ 766,708 |
Schedule of regulatory liabilities | Regulatory liabilities were as follows: December 31 2021 2020 (in thousands) Cost of removal in excess of salvage value (1-79 years) $ 562,514 $ 541,730 Income taxes (1-55 years) 337,304 360,426 Decoupling revenue balancing account and RAM (1-2 years) 251 1,957 Retirement benefit plans (balance primarily varies with plans’ funded statuses) 51,734 29,759 Solar tax credits (1-20 years) 27,123 8,096 Other (1-4 years remaining) 17,842 17,818 Total regulatory liabilities $ 996,768 $ 959,786 Included in: Current liabilities $ 29,760 $ 37,301 Long-term liabilities 967,008 922,485 Total regulatory liabilities $ 996,768 $ 959,786 |
Schedule of voluntary liquidation and redemption prices of cumulative preferred stock | The following series of cumulative preferred stock are redeemable only at the option of the respective company at the following prices in the event of voluntary liquidation or redemption: December 31, 2021 Voluntary Redemption Series C, D, E, H, J and K (Hawaiian Electric) $ 20 $ 21 I (Hawaiian Electric) 20 20 G (Hawaii Electric Light) 100 100 H (Maui Electric) 100 100 |
Schedule of purchases from all IPPs | Purchases from all IPPs were as follows: Years ended December 31 2021 2020 2019 (in millions) Kalaeloa $ 204 $ 149 $ 214 AES Hawaii 130 133 139 HPOWER 70 70 76 Hamakua Energy 29 50 68 Puna Geothermal Venture 53 1 — Wind IPPs 124 105 95 Solar IPPs 50 57 36 Other IPPs 1 10 4 5 Total IPPs $ 670 $ 569 $ 633 1 Includes hydro power and other PPAs |
Schedule of changes in asset retirement obligation | Changes to the ARO liability included in “Other liabilities” on Hawaiian Electric’s balance sheet were as follows: (in thousands) 2021 2020 Balance, January 1 $ 10,692 $ 10,324 Accretion expense 423 405 Liabilities incurred — — Liabilities settled (5) (37) Balance, December 31 $ 11,110 $ 10,692 |
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 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 were included in the 2021 fall revenue report filing. (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. |
Schedule of consolidating statements of income | Consolidating statement of income Year ended December 31, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 1,793,372 381,033 365,256 (25) [1] $ 2,539,636 Expenses Fuel oil 442,818 80,086 121,445 — 644,349 Purchased power 508,642 108,997 52,855 — 670,494 Other operation and maintenance 313,009 79,390 83,013 — 475,412 Depreciation 155,607 40,201 33,661 — 229,469 Taxes, other than income taxes 170,604 35,499 34,251 — 240,354 Total expenses 1,590,680 344,173 325,225 — 2,260,078 Operating income 202,692 36,860 40,031 (25) 279,558 Allowance for equity funds used during construction 7,734 586 1,214 — 9,534 Equity in earnings of subsidiaries 45,353 — — (45,353) [2] — Retirement defined benefits credit (expense)—other than service costs 3,348 670 (128) — 3,890 Interest expense and other charges, net (51,680) (10,353) (10,439) 25 [1] (72,447) Allowance for borrowed funds used during construction 2,617 197 436 — 3,250 Income before income taxes 210,064 27,960 31,114 (45,353) 223,785 Income taxes 31,342 6,246 6,560 — 44,148 Net income 178,722 21,714 24,554 (45,353) 179,637 Preferred stock dividends of subsidiaries — 534 381 — 915 Net income attributable to Hawaiian Electric 178,722 21,180 24,173 (45,353) 178,722 Preferred stock dividends of Hawaiian Electric 1,080 — — — 1,080 Net income for common stock $ 177,642 21,180 24,173 (45,353) $ 177,642 Consolidating statement of income Year ended December 31, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 1,608,305 334,221 323,430 (636) [1] $ 2,265,320 Expenses Fuel oil 354,087 72,202 88,985 — 515,274 Purchased power 446,672 73,120 48,957 — 568,749 Other operation and maintenance 311,781 73,746 88,665 — 474,192 Depreciation 151,387 39,041 32,305 — 222,733 Taxes, other than income taxes 154,191 31,181 30,450 — 215,822 Total expenses 1,418,118 289,290 289,362 — 1,996,770 Operating income 190,187 44,931 34,068 (636) 268,550 Allowance for equity funds used during construction 7,335 543 890 — 8,768 Equity in earnings of subsidiaries 47,504 — — (47,504) [2] — Retirement defined benefits credit (expense)—other than service costs (1,294) 672 (141) — (763) Interest expense and other charges, net (48,775) (10,004) (9,651) 636 [1] (67,794) Allowance for borrowed funds used during construction 2,540 160 292 — 2,992 Income before income taxes 197,497 36,302 25,458 (47,504) 211,753 Income taxes 27,077 8,275 5,066 — 40,418 Net income 170,420 28,027 20,392 (47,504) 171,335 Preferred stock dividends of subsidiaries — 534 381 — 915 Net income attributable to Hawaiian Electric 170,420 27,493 20,011 (47,504) 170,420 Preferred stock dividends of Hawaiian Electric 1,080 — — — 1,080 Net income for common stock $ 169,340 27,493 20,011 (47,504) $ 169,340 Consolidating statement of income Year ended December 31, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 1,803,698 364,590 378,202 (548) [1] $ 2,545,942 Expenses Fuel oil 494,728 84,565 141,416 — 720,709 Purchased power 494,215 90,989 48,052 — 633,256 Other operation and maintenance 319,771 76,091 85,875 — 481,737 Depreciation 143,470 41,812 30,449 — 215,731 Taxes, other than income taxes 170,979 33,787 35,365 — 240,131 Total expenses 1,623,163 327,244 341,157 — 2,291,564 Operating income 180,535 37,346 37,045 (548) 254,378 Allowance for equity funds used during construction 9,955 816 1,216 — 11,987 Equity in earnings of subsidiaries 43,167 — — (43,167) [2] — Retirement defined benefits expense—other than service costs (2,287) (422) (127) — (2,836) Interest expense and other charges, net (51,199) (10,741) (9,450) 548 [1] (70,842) Allowance for borrowed funds used during construction 3,666 342 445 — 4,453 Income before income taxes 183,837 27,341 29,129 (43,167) 197,140 Income taxes 25,917 5,990 6,398 — 38,305 Net income 157,920 21,351 22,731 (43,167) 158,835 Preferred stock dividends of subsidiaries — 534 381 — 915 Net income attributable to Hawaiian Electric 157,920 20,817 22,350 (43,167) 157,920 Preferred stock dividends of Hawaiian Electric 1,080 — — — 1,080 Net income for common stock $ 156,840 20,817 22,350 (43,167) $ 156,840 Statements of Income and Comprehensive Income Data Years ended December 31 2021 2020 2019 (in thousands) Interest and dividend income Interest and fees on loans $ 198,802 $ 214,134 $ 233,632 Interest and dividends on investment securities 43,464 30,529 32,922 Total interest and dividend income 242,266 244,663 266,554 Interest expense Interest on deposit liabilities 4,981 10,654 16,830 Interest on other borrowings 59 460 1,610 Total interest expense 5,040 11,114 18,440 Net interest income 237,226 233,549 248,114 Provision for credit losses (25,825) 50,811 23,480 Net interest income after provision for credit losses 263,051 182,738 224,634 Noninterest income Fees from other financial services 21,225 16,447 19,275 Fee income on deposit liabilities 16,663 16,059 20,877 Fee income on other financial products 8,770 6,381 6,507 Bank-owned life insurance 7,318 6,483 7,687 Mortgage banking income 9,305 23,734 4,943 Gain on sale of real estate — — 10,762 Gain on sale of investment securities, net 528 9,275 653 Other income, net 851 (256) 2,074 Total noninterest income 64,660 78,123 72,778 Noninterest expense Compensation and employee benefits 113,970 104,443 103,009 Occupancy 20,584 21,573 21,272 Data processing 17,634 14,769 15,306 Services 10,327 11,121 10,239 Equipment 9,510 9,001 8,760 Office supplies, printing and postage 4,239 4,623 5,512 Marketing 3,870 3,435 4,490 FDIC insurance 3,235 2,342 1,204 Other expense 1 13,783 20,283 15,586 Total noninterest expense 197,152 191,590 185,378 Income before income taxes 130,559 69,271 112,034 Income taxes 29,325 11,688 23,061 Net income 101,234 57,583 88,973 Other comprehensive income (loss), net of taxes (52,728) 23,608 29,406 Comprehensive income $ 48,506 $ 81,191 $ 118,379 1 2021 and 2020 include approximately $0.6 million and $5.1 million of certain direct and incremental COVID-19 related costs, respectively. For 2020, these costs include $2.5 million of compensation expense and $2.0 million of enhanced cleaning and sanitation costs. Reconciliation to amounts per HEI Consolidated Statements of Income*: Years ended December 31 2021 2020 2019 (in thousands) Interest and dividend income $ 242,266 $ 244,663 $ 266,554 Noninterest income 64,660 78,123 72,778 Less: Gain on sale of real estate — — 10,762 Less: Gain on sale of investment securities, net 528 9,275 653 *Revenues-Bank 306,398 313,511 327,917 Total interest expense 5,040 11,114 18,440 Provision for credit losses (25,825) 50,811 23,480 Noninterest expense 197,152 191,590 185,378 Less: Retirement defined benefits expense (credit)—other than service costs (1,828) 1,813 (472) Add: Gain on sale of real estate — — 10,762 *Expenses-Bank 178,195 251,702 217,008 *Operating income-Bank 128,203 61,809 110,909 Add back: Retirement defined benefits expense (credit)—other than service costs (1,828) 1,813 (472) Add back: Gain on sale of investment securities, net 528 9,275 653 Income before income taxes $ 130,559 $ 69,271 $ 112,034 |
Schedule of consolidating statements of comprehensive income | Consolidating statement of comprehensive income Year ended December 31, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Consolidating Hawaiian Electric Net income for common stock $ 177,642 21,180 24,173 (45,353) $ 177,642 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Net gains arising during the period, net of taxes 151,523 17,902 16,572 (34,474) [1] 151,523 Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 19,461 2,749 2,553 (5,302) [1] 19,461 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (171,345) (20,585) (18,898) 39,483 [1] (171,345) Other comprehensive income (loss), net of taxes (361) 66 227 (293) (361) Comprehensive income attributable to common shareholder $ 177,281 21,246 24,400 (45,646) $ 177,281 Consolidating statement of comprehensive income Year ended December 31, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Consolidating adjustments Hawaiian Electric Net income for common stock $ 169,340 27,493 20,011 (47,504) $ 169,340 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Net losses arising during the period, net of tax benefits (63,050) (9,424) (10,897) 20,321 [1] (63,050) Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 21,550 3,179 2,763 (5,942) [1] 21,550 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes 39,860 6,025 8,000 (14,025) [1] 39,860 Other comprehensive loss, net of tax benefits (1,640) (220) (134) 354 (1,640) Comprehensive income attributable to common shareholder $ 167,700 27,273 19,877 (47,150) $ 167,700 Consolidating statement of comprehensive income Year ended December 31, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Consolidating adjustments Hawaiian Electric Net income for common stock $ 156,840 20,817 22,350 (43,167) $ 156,840 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Net gains (losses) arising during the period, net of taxes 5,249 373 (204) (169) [1] 5,249 Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 9,550 1,455 1,182 (2,637) [1] 9,550 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (16,177) (1,840) (1,152) 2,992 [1] (16,177) Other comprehensive loss, net of tax benefits (1,378) (12) (174) 186 (1,378) Comprehensive income attributable to common shareholder $ 155,462 20,805 22,176 (42,981) $ 155,462 |
Schedule of consolidating balance sheets | Consolidating balance sheet December 31, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 42,737 5,606 3,594 — — $ 51,937 Plant and equipment 5,097,033 1,390,361 1,248,589 — — 7,735,983 Less accumulated depreciation (1,757,096) (619,991) (563,430) — — (2,940,517) Construction in progress 159,854 17,129 27,586 — — 204,569 Utility property, plant and equipment, net 3,542,528 793,105 716,339 — — 5,051,972 Nonutility property, plant and equipment, less accumulated depreciation 5,302 115 1,532 — — 6,949 Total property, plant and equipment, net 3,547,830 793,220 717,871 — — 5,058,921 Investment in wholly-owned subsidiaries, at equity 676,237 — — — (676,237) [2] — Current assets Cash and cash equivalents 23,344 5,326 23,422 77 — 52,169 Restricted cash 3,089 — — — — 3,089 Advances to affiliates 1,000 — — — (1,000) [1] — Customer accounts receivable, net 135,949 28,469 22,441 — — 186,859 Accrued unbilled revenues, net 92,469 19,529 17,157 — — 129,155 Other accounts receivable, net 18,624 3,347 3,031 — (17,735) [1] 7,267 Fuel oil stock, at average cost 71,184 12,814 20,080 — — 104,078 Materials and supplies, at average cost 42,006 9,727 20,144 — — 71,877 Prepayments and other 32,140 6,052 7,114 — 725 [1] 46,031 Regulatory assets 58,695 3,051 4,918 — — 66,664 Total current assets 478,500 88,315 118,307 77 (18,010) 667,189 Other long-term assets Operating lease right-of-use assets 78,710 22,442 318 — — 101,470 Regulatory assets 337,903 81,645 79,331 — — 498,879 Other 130,546 17,124 18,510 — (1,014) [1] 165,166 Total other long-term assets 547,159 121,211 98,159 — (1,014) 765,515 Total assets $ 5,249,726 1,002,746 934,337 77 (695,261) $ 6,491,625 Capitalization and liabilities Capitalization Common stock equity $ 2,261,899 332,900 343,260 77 (676,237) [2] $ 2,261,899 Cumulative preferred stock–not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,136,620 234,390 253,417 — — 1,624,427 Total capitalization 3,420,812 574,290 601,677 77 (676,237) 3,920,619 Current liabilities Current portion of operating lease liabilities 45,955 3,378 35 — — 49,368 Current portion of long-term debt, net 39,981 11,994 — — — 51,975 Short-term borrowings-affiliate — 1,000 — — (1,000) [1] — Accounts payable 111,024 26,139 22,844 — — 160,007 Interest and preferred dividends payable 12,442 2,617 2,269 — (3) [1] 17,325 Taxes accrued, including revenue taxes 143,723 33,153 30,679 — 725 [1] 208,280 Regulatory liabilities 22,240 3,247 4,273 — — 29,760 Other 56,752 14,158 18,540 — (17,881) [1] 71,569 Total current liabilities 432,117 95,686 78,640 — (18,159) 588,284 Deferred credits and other liabilities Operating lease liabilities 46,426 19,063 291 — — 65,780 Deferred income taxes 291,027 53,298 64,309 — — 408,634 Regulatory liabilities 695,152 179,267 92,589 — — 967,008 Unamortized tax credits 76,201 14,212 13,532 — — 103,945 Defined benefit pension and other postretirement benefit plans liability 220,480 48,900 53,257 — (857) [1] 321,780 Other 67,511 18,030 30,042 — (8) 115,575 Total deferred credits and other liabilities 1,396,797 332,770 254,020 — (865) 1,982,722 Total capitalization and liabilities $ 5,249,726 1,002,746 934,337 77 (695,261) $ 6,491,625 Consolidating balance sheet December 31, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating 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) [2] — 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) [1] — 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) [1] 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] $ 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) [1] — Accounts payable 97,102 19,570 17,177 — — 133,849 Interest and preferred dividends payable 14,480 3,138 2,790 — (58) [1] 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) [1] 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 December 31 2021 2020 (in thousands) Assets Cash and due from banks $ 100,051 $ 178,422 Interest-bearing deposits 151,189 114,304 Cash and cash equivalents 251,240 292,726 Investment securities Available-for-sale, at fair value 2,574,618 1,970,417 Held-to-maturity, at amortized cost (fair value of $510,474 and $229,963 at December 31, 2021 and 2020, respectively) 522,270 226,947 Stock in Federal Home Loan Bank, at cost 10,000 8,680 Loans held for investment 5,211,114 5,333,843 Allowance for credit losses (71,130) (101,201) Net loans 5,139,984 5,232,642 Loans held for sale, at lower of cost or fair value 10,404 28,275 Other 590,897 554,656 Goodwill 82,190 82,190 Total assets $ 9,181,603 $ 8,396,533 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 2,976,632 $ 2,598,500 Deposit liabilities–interest-bearing 5,195,580 4,788,457 Other borrowings 88,305 89,670 Other 193,268 183,731 Total liabilities 8,453,785 7,660,358 Commitments and contingencies Common stock 1 1 Additional paid in capital 353,895 351,758 Retained earnings 411,704 369,470 Accumulated other comprehensive income (loss), net of taxes Net unrealized gains (losses) on securities $ (32,037) $ 19,986 Retirement benefit plans (5,745) (37,782) (5,040) 14,946 Total shareholder’s equity 727,818 736,175 Total liabilities and shareholder’s equity $ 9,181,603 $ 8,396,533 December 31 2021 2020 (in thousands) Other assets Bank-owned life insurance $ 177,566 $ 163,265 Premises and equipment, net 202,299 206,134 Accrued interest receivable 20,854 24,616 Mortgage servicing rights 9,950 10,020 Low-income housing investments 110,989 83,435 Other 69,239 67,186 $ 590,897 $ 554,656 Other liabilities Accrued expenses $ 87,905 $ 62,694 Federal and state income taxes payable — 6,582 Cashier’s checks 33,675 38,011 Advance payments by borrowers 9,994 10,207 Other 61,694 66,237 $ 193,268 $ 183,731 |
Schedule of consolidating statements of changes in common stock equity | Consolidating statements of changes in common stock equity (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating Hawaiian Electric Balance, December 31, 2018 $ 1,957,641 295,874 280,863 101 (576,838) $ 1,957,641 Net income for common stock 156,840 20,817 22,350 — (43,167) 156,840 Other comprehensive income, net of taxes (1,378) (12) (174) — 186 (1,378) Issuance of common stock, net of expenses 35,501 (1) 4,899 — (4,898) 35,501 Common stock dividends (101,252) (17,680) (15,068) — 32,748 (101,252) Balance, December 31, 2019 2,047,352 298,998 292,870 101 (591,969) 2,047,352 Net income for common stock 169,340 27,493 20,011 — (47,504) 169,340 Other comprehensive loss, net of tax benefits (1,640) (220) (134) — 354 (1,640) Issuance of common stock, net of expenses 34,000 7,500 11,000 — (18,500) 34,000 Common stock dividends (107,134) (16,320) (14,384) — 30,704 (107,134) Dissolution of subsidiary — — — (24) 24 — Balance, December 31, 2020 2,141,918 317,451 309,363 77 (626,891) 2,141,918 Net income for common stock 177,642 21,180 24,173 — (45,353) 177,642 Other comprehensive loss, net of tax benefits (361) 66 227 — (293) (361) Issuance of common stock, net of expenses 54,400 8,803 24,597 — (33,400) 54,400 Common stock dividends (111,700) (14,600) (15,100) — 29,700 (111,700) Balance, December 31, 2021 $ 2,261,899 332,900 343,260 77 (676,237) $ 2,261,899 |
Schedule of consolidating statements of cash flows | Consolidating statement of cash flows Year ended December 31, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating Hawaiian Electric Cash flows from operating activities Net income $ 178,722 21,714 24,554 — (45,353) [2] $ 179,637 Adjustments to reconcile net income to net cash provided by operating activities Equity in earnings of subsidiaries (45,353) — — — 45,353 [2] — Common stock dividends received from subsidiaries 29,700 — — — (29,700) [2] — Depreciation of property, plant and equipment 155,607 40,201 33,661 — — 229,469 Other amortization 16,688 3,532 1,517 — — 21,737 Deferred income taxes (3,191) (1,955) 1,317 — — (3,829) State refundable credit (7,120) (1,672) (1,790) — — (10,582) Bad debt expense 1,159 509 515 — — 2,183 Allowance for equity funds used during construction (7,734) (586) (1,214) — — (9,534) Bill credits 1,400 300 300 — — 2,000 Other 366 (41) 1,025 — — 1,350 Changes in assets and liabilities: Increase in accounts receivable (41,727) (6,832) (3,071) — 1,540 [1] (50,090) Increase in accrued unbilled revenues (18,345) (5,816) (3,303) — — (27,464) Increase in fuel oil stock (32,407) (4,343) (9,090) — — (45,840) Decrease (increase) in materials and supplies (3,220) 169 (1,482) — — (4,533) Decrease (increase) in regulatory assets (15,422) 24 1,524 — — (13,874) Increase (decrease) in regulatory liabilities 16,269 (1,031) 120 15,358 Increase in accounts payable 9,828 4,723 3,120 — — 17,671 Change in prepaid and accrued income taxes, tax credits and revenue taxes 21,217 3,861 1,938 — (86) [1] 26,930 Decrease in defined benefit pension and other postretirement benefit plans liability (3,480) (950) (724) — — (5,154) Change in other assets and liabilities (36,733) (5,833) (8,196) — (1,540) [1] (52,302) Net cash provided by operating activities 216,224 45,974 40,721 — (29,786) 273,133 Cash flows from investing activities Capital expenditures (194,984) (50,516) (46,500) — — (292,000) Advances from affiliates 25,700 — — — (25,700) [1] — Other (29,596) 1,072 1,073 33,486 [1],[2] 6,035 Net cash used in investing activities (198,880) (49,444) (45,427) — 7,786 (285,965) Cash flows from financing activities Common stock dividends (111,700) (14,600) (15,100) — 29,700 [2] (111,700) Preferred stock dividends of Hawaiian Electric and subsidiaries (1,080) (534) (381) — — (1,995) Proceeds from issuance of common stock 54,400 8,803 24,597 — (33,400) [2] 54,400 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 — (17,800) (7,900) — 25,700 [1] — Repayment of short-term debt (50,000) — — — — (50,000) Other (702) (119) (120) — — (941) Net cash provided by (used in) financing activities (49,082) 5,750 26,096 — 22,000 4,764 Net increase (decrease) in cash, cash equivalents and restricted cash (31,738) 2,280 21,390 — — (8,068) Cash, cash equivalents and restricted cash, January 1 58,171 3,046 2,032 77 — 63,326 Cash, cash equivalents and restricted cash, December 31 26,433 5,326 23,422 77 — 55,258 Less: Restricted cash (3,089) — — — — (3,089) Cash and cash equivalents, December 31 $ 23,344 5,326 23,422 77 — $ 52,169 Consolidating statement of cash flows Year ended December 31, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating Hawaiian Electric Cash flows from operating activities Net income $ 170,420 28,027 20,392 — (47,504) [2] $ 171,335 Adjustments to reconcile net income to net cash provided by operating activities Equity in earnings of subsidiaries (47,504) — — — 47,504 [2] — Common stock dividends received from subsidiaries 30,704 — — — (30,704) [2] — Depreciation of property, plant and equipment 151,387 39,041 32,305 — — 222,733 Other amortization 24,511 5,090 4,145 — — 33,746 Deferred income taxes 2,130 (463) 1,484 — — 3,151 State refundable credit (6,668) (1,593) (1,700) — — (9,961) Bad debt expense 1,042 620 453 — — 2,115 Allowance for equity funds used during construction (7,335) (543) (890) — — (8,768) Accrued environmental reserve 6,556 — — — — 6,556 Other 1,201 1,322 87 — — 2,610 Changes in assets and liabilities: Increase in accounts receivable (8,093) (3,349) (1,343) — 5,499 [1] (7,286) Decrease in accrued unbilled revenues 8,832 3,327 3,126 — — 15,285 Decrease in fuel oil stock 30,226 430 3,043 — — 33,699 Increase in materials and supplies (3,910) (1,583) (1,149) — — (6,642) Decrease (increase) in regulatory assets 8,526 (2,908) (4,611) — — 1,007 Decrease in regulatory liabilities (5,490) (4,489) (6,583) (16,562) Decrease in accounts payable (26,093) (1,819) (5,217) — — (33,129) Change in prepaid and accrued income taxes, tax credits and revenue taxes (25,757) (5,483) (5,998) — 58 [1] (37,180) Decrease in defined benefit pension and other postretirement benefit plans liability (3,092) (643) (571) — — (4,306) Change in other assets and liabilities (21,124) (8,864) 3,635 — (5,499) [1] (31,852) Net cash provided by operating activities 280,469 46,120 40,608 — (30,646) 336,551 Cash flows from investing activities Capital expenditures (229,127) (64,346) (57,391) — — (350,864) Advances from affiliates 1,000 8,000 — — (9,000) [1] — Other (14,340) 1,032 960 (24) 18,442 [1],[2] 6,070 Net cash used in investing activities (242,467) (55,314) (56,431) (24) 9,442 (344,794) Cash flows from financing activities Common stock dividends (107,134) (16,320) (14,384) — 30,704 [2] (107,134) Preferred stock dividends of Hawaiian Electric and subsidiaries (1,080) (534) (381) — — (1,995) Proceeds from the issuance of common stock 34,000 7,500 11,000 — (18,500) [2] 34,000 Proceeds from the 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) 18,800 (19,800) — 9,000 [1] (38,987) Proceeds from issuance of short-term debt 100,000 — — — — 100,000 Repayment of short-term debt (100,000) — — — — (100,000) Other (1,618) (214) (377) — — (2,209) Net cash provided by (used in) financing activities (12,819) 5,232 16,058 — 21,204 29,675 Net increase (decrease) in cash, cash equivalents and restricted cash 25,183 (3,962) 235 (24) — 21,432 Cash, cash equivalents and restricted cash, January 1 32,988 7,008 1,797 101 — 41,894 Cash, cash equivalents and restricted cash, December 31 58,171 3,046 2,032 77 — 63,326 Less: Restricted cash (15,966) — — — — (15,966) Cash and cash equivalents, December 31 $ 42,205 3,046 2,032 77 — $ 47,360 Consolidating statement of cash flows Year ended December 31, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating Hawaiian Electric Cash flows from operating activities Net income $ 157,920 21,351 22,731 — (43,167) [2] $ 158,835 Adjustments to reconcile net income to net cash provided by operating activities Equity in earnings of subsidiaries (43,204) — — — 43,167 [2] (37) Common stock dividends received from subsidiaries 32,783 — — — (32,748) [2] 35 Depreciation of property, plant and equipment 143,470 41,812 30,449 — — 215,731 Other amortization 23,351 4,810 1,470 — — 29,631 Deferred income taxes (13,547) (2,383) (354) — — (16,284) State refundable credit (6,245) (559) (1,565) — — (8,369) Bad debt expense 1,236 470 444 — — 2,150 Allowance for equity funds used during construction (9,955) (816) (1,216) — — (11,987) Accrued environmental reserve 406 — — — — 406 Other 27,575 (61) (55) — — 27,459 Changes in assets and liabilities: Decrease in accounts receivable 24,150 2,858 3,029 — (11,215) [1] 18,822 Decrease (increase) in accrued unbilled revenues 4,902 (22) (385) — — 4,495 Decrease (increase) in fuel oil stock (14,741) 2,126 613 — — (12,002) Decrease (increase) in materials and supplies (4,585) (1,158) 245 — — (5,498) Decrease in regulatory assets 55,494 9,218 6,550 — — 71,262 Increase (decrease) in regulatory liabilities 102 (1,558) 3,409 1,953 Increase (decrease) in accounts payable 4,687 (3,160) (3,578) — — (2,051) Change in prepaid and accrued income taxes, tax credits and revenue taxes (24,900) (893) (3,097) — 367 [1] (28,523) Decrease in defined benefit pension and other postretirement benefit plans liability (3,033) (762) (653) — — (4,448) Change in other assets and liabilities (15,747) (6,152) (6,940) — 11,215 [1] (17,624) Net cash provided by operating activities 340,119 65,121 51,097 — (32,381) 423,956 Cash flows from investing activities Capital expenditures (311,538) (49,811) (58,549) — — (419,898) Advances to affiliates (27,700) (8,000) — — 35,700 [1] — Other 5,241 297 1,303 — 4,533 [1][2] 11,374 Net cash used in investing activities (333,997) (57,514) (57,246) — 40,233 (408,524) Cash flows from financing activities Common stock dividends (101,252) (17,680) (15,068) — 32,748 [2] (101,252) Preferred stock dividends of Hawaiian Electric and subsidiaries (1,080) (534) (381) — — (1,995) Proceeds from the issuance of common stock 35,500 — 4,900 — (4,900) [2] 35,500 Proceeds from the issuance of long-term debt 190,000 72,500 17,500 — — 280,000 Repayment of long-term debt and funds transferred for repayment of long-term debt (183,546) (70,000) (30,000) — — (283,546) Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less 46,987 — 27,700 — (35,700) [1] 38,987 Proceeds from issuance of short-term debt 75,000 — — — — 75,000 Other (1,475) (508) (126) — — (2,109) Repayment of short-term debt (50,000) — — — — (50,000) Net cash provided by (used in) financing activities 10,134 (16,222) 4,525 — (7,852) (9,415) Net increase (decrease) in cash, cash equivalents and restricted cash 16,256 (8,615) (1,624) — — 6,017 Cash, cash equivalents and restricted cash, January 1 16,732 15,623 3,421 101 — 35,877 Cash, cash equivalents and restricted cash, December 31 32,988 7,008 1,797 101 — 41,894 Less: Restricted cash (30,749) (123) — — — (30,872) Cash and cash equivalents, December 31 $ 2,239 6,885 1,797 101 — $ 11,022 Explanation of consolidating adjustments on consolidating schedules: [1] Eliminations of intercompany receivables and payables and other intercompany transactions [2] Elimination of investment in subsidiaries, carried at equity |
Bank segment (HEI only) (Tables
Bank segment (HEI only) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Bank Segment Disclosure [Abstract] | |
Schedule of statements of income data | Consolidating statement of income Year ended December 31, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 1,793,372 381,033 365,256 (25) [1] $ 2,539,636 Expenses Fuel oil 442,818 80,086 121,445 — 644,349 Purchased power 508,642 108,997 52,855 — 670,494 Other operation and maintenance 313,009 79,390 83,013 — 475,412 Depreciation 155,607 40,201 33,661 — 229,469 Taxes, other than income taxes 170,604 35,499 34,251 — 240,354 Total expenses 1,590,680 344,173 325,225 — 2,260,078 Operating income 202,692 36,860 40,031 (25) 279,558 Allowance for equity funds used during construction 7,734 586 1,214 — 9,534 Equity in earnings of subsidiaries 45,353 — — (45,353) [2] — Retirement defined benefits credit (expense)—other than service costs 3,348 670 (128) — 3,890 Interest expense and other charges, net (51,680) (10,353) (10,439) 25 [1] (72,447) Allowance for borrowed funds used during construction 2,617 197 436 — 3,250 Income before income taxes 210,064 27,960 31,114 (45,353) 223,785 Income taxes 31,342 6,246 6,560 — 44,148 Net income 178,722 21,714 24,554 (45,353) 179,637 Preferred stock dividends of subsidiaries — 534 381 — 915 Net income attributable to Hawaiian Electric 178,722 21,180 24,173 (45,353) 178,722 Preferred stock dividends of Hawaiian Electric 1,080 — — — 1,080 Net income for common stock $ 177,642 21,180 24,173 (45,353) $ 177,642 Consolidating statement of income Year ended December 31, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 1,608,305 334,221 323,430 (636) [1] $ 2,265,320 Expenses Fuel oil 354,087 72,202 88,985 — 515,274 Purchased power 446,672 73,120 48,957 — 568,749 Other operation and maintenance 311,781 73,746 88,665 — 474,192 Depreciation 151,387 39,041 32,305 — 222,733 Taxes, other than income taxes 154,191 31,181 30,450 — 215,822 Total expenses 1,418,118 289,290 289,362 — 1,996,770 Operating income 190,187 44,931 34,068 (636) 268,550 Allowance for equity funds used during construction 7,335 543 890 — 8,768 Equity in earnings of subsidiaries 47,504 — — (47,504) [2] — Retirement defined benefits credit (expense)—other than service costs (1,294) 672 (141) — (763) Interest expense and other charges, net (48,775) (10,004) (9,651) 636 [1] (67,794) Allowance for borrowed funds used during construction 2,540 160 292 — 2,992 Income before income taxes 197,497 36,302 25,458 (47,504) 211,753 Income taxes 27,077 8,275 5,066 — 40,418 Net income 170,420 28,027 20,392 (47,504) 171,335 Preferred stock dividends of subsidiaries — 534 381 — 915 Net income attributable to Hawaiian Electric 170,420 27,493 20,011 (47,504) 170,420 Preferred stock dividends of Hawaiian Electric 1,080 — — — 1,080 Net income for common stock $ 169,340 27,493 20,011 (47,504) $ 169,340 Consolidating statement of income Year ended December 31, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 1,803,698 364,590 378,202 (548) [1] $ 2,545,942 Expenses Fuel oil 494,728 84,565 141,416 — 720,709 Purchased power 494,215 90,989 48,052 — 633,256 Other operation and maintenance 319,771 76,091 85,875 — 481,737 Depreciation 143,470 41,812 30,449 — 215,731 Taxes, other than income taxes 170,979 33,787 35,365 — 240,131 Total expenses 1,623,163 327,244 341,157 — 2,291,564 Operating income 180,535 37,346 37,045 (548) 254,378 Allowance for equity funds used during construction 9,955 816 1,216 — 11,987 Equity in earnings of subsidiaries 43,167 — — (43,167) [2] — Retirement defined benefits expense—other than service costs (2,287) (422) (127) — (2,836) Interest expense and other charges, net (51,199) (10,741) (9,450) 548 [1] (70,842) Allowance for borrowed funds used during construction 3,666 342 445 — 4,453 Income before income taxes 183,837 27,341 29,129 (43,167) 197,140 Income taxes 25,917 5,990 6,398 — 38,305 Net income 157,920 21,351 22,731 (43,167) 158,835 Preferred stock dividends of subsidiaries — 534 381 — 915 Net income attributable to Hawaiian Electric 157,920 20,817 22,350 (43,167) 157,920 Preferred stock dividends of Hawaiian Electric 1,080 — — — 1,080 Net income for common stock $ 156,840 20,817 22,350 (43,167) $ 156,840 Statements of Income and Comprehensive Income Data Years ended December 31 2021 2020 2019 (in thousands) Interest and dividend income Interest and fees on loans $ 198,802 $ 214,134 $ 233,632 Interest and dividends on investment securities 43,464 30,529 32,922 Total interest and dividend income 242,266 244,663 266,554 Interest expense Interest on deposit liabilities 4,981 10,654 16,830 Interest on other borrowings 59 460 1,610 Total interest expense 5,040 11,114 18,440 Net interest income 237,226 233,549 248,114 Provision for credit losses (25,825) 50,811 23,480 Net interest income after provision for credit losses 263,051 182,738 224,634 Noninterest income Fees from other financial services 21,225 16,447 19,275 Fee income on deposit liabilities 16,663 16,059 20,877 Fee income on other financial products 8,770 6,381 6,507 Bank-owned life insurance 7,318 6,483 7,687 Mortgage banking income 9,305 23,734 4,943 Gain on sale of real estate — — 10,762 Gain on sale of investment securities, net 528 9,275 653 Other income, net 851 (256) 2,074 Total noninterest income 64,660 78,123 72,778 Noninterest expense Compensation and employee benefits 113,970 104,443 103,009 Occupancy 20,584 21,573 21,272 Data processing 17,634 14,769 15,306 Services 10,327 11,121 10,239 Equipment 9,510 9,001 8,760 Office supplies, printing and postage 4,239 4,623 5,512 Marketing 3,870 3,435 4,490 FDIC insurance 3,235 2,342 1,204 Other expense 1 13,783 20,283 15,586 Total noninterest expense 197,152 191,590 185,378 Income before income taxes 130,559 69,271 112,034 Income taxes 29,325 11,688 23,061 Net income 101,234 57,583 88,973 Other comprehensive income (loss), net of taxes (52,728) 23,608 29,406 Comprehensive income $ 48,506 $ 81,191 $ 118,379 1 2021 and 2020 include approximately $0.6 million and $5.1 million of certain direct and incremental COVID-19 related costs, respectively. For 2020, these costs include $2.5 million of compensation expense and $2.0 million of enhanced cleaning and sanitation costs. Reconciliation to amounts per HEI Consolidated Statements of Income*: Years ended December 31 2021 2020 2019 (in thousands) Interest and dividend income $ 242,266 $ 244,663 $ 266,554 Noninterest income 64,660 78,123 72,778 Less: Gain on sale of real estate — — 10,762 Less: Gain on sale of investment securities, net 528 9,275 653 *Revenues-Bank 306,398 313,511 327,917 Total interest expense 5,040 11,114 18,440 Provision for credit losses (25,825) 50,811 23,480 Noninterest expense 197,152 191,590 185,378 Less: Retirement defined benefits expense (credit)—other than service costs (1,828) 1,813 (472) Add: Gain on sale of real estate — — 10,762 *Expenses-Bank 178,195 251,702 217,008 *Operating income-Bank 128,203 61,809 110,909 Add back: Retirement defined benefits expense (credit)—other than service costs (1,828) 1,813 (472) Add back: Gain on sale of investment securities, net 528 9,275 653 Income before income taxes $ 130,559 $ 69,271 $ 112,034 |
Schedule of statements of comprehensive income data | Statements of Income and Comprehensive Income Data Years ended December 31 2021 2020 2019 (in thousands) Interest and dividend income Interest and fees on loans $ 198,802 $ 214,134 $ 233,632 Interest and dividends on investment securities 43,464 30,529 32,922 Total interest and dividend income 242,266 244,663 266,554 Interest expense Interest on deposit liabilities 4,981 10,654 16,830 Interest on other borrowings 59 460 1,610 Total interest expense 5,040 11,114 18,440 Net interest income 237,226 233,549 248,114 Provision for credit losses (25,825) 50,811 23,480 Net interest income after provision for credit losses 263,051 182,738 224,634 Noninterest income Fees from other financial services 21,225 16,447 19,275 Fee income on deposit liabilities 16,663 16,059 20,877 Fee income on other financial products 8,770 6,381 6,507 Bank-owned life insurance 7,318 6,483 7,687 Mortgage banking income 9,305 23,734 4,943 Gain on sale of real estate — — 10,762 Gain on sale of investment securities, net 528 9,275 653 Other income, net 851 (256) 2,074 Total noninterest income 64,660 78,123 72,778 Noninterest expense Compensation and employee benefits 113,970 104,443 103,009 Occupancy 20,584 21,573 21,272 Data processing 17,634 14,769 15,306 Services 10,327 11,121 10,239 Equipment 9,510 9,001 8,760 Office supplies, printing and postage 4,239 4,623 5,512 Marketing 3,870 3,435 4,490 FDIC insurance 3,235 2,342 1,204 Other expense 1 13,783 20,283 15,586 Total noninterest expense 197,152 191,590 185,378 Income before income taxes 130,559 69,271 112,034 Income taxes 29,325 11,688 23,061 Net income 101,234 57,583 88,973 Other comprehensive income (loss), net of taxes (52,728) 23,608 29,406 Comprehensive income $ 48,506 $ 81,191 $ 118,379 1 2021 and 2020 include approximately $0.6 million and $5.1 million of certain direct and incremental COVID-19 related costs, respectively. For 2020, these costs include $2.5 million of compensation expense and $2.0 million of enhanced cleaning and sanitation costs. Reconciliation to amounts per HEI Consolidated Statements of Income*: Years ended December 31 2021 2020 2019 (in thousands) Interest and dividend income $ 242,266 $ 244,663 $ 266,554 Noninterest income 64,660 78,123 72,778 Less: Gain on sale of real estate — — 10,762 Less: Gain on sale of investment securities, net 528 9,275 653 *Revenues-Bank 306,398 313,511 327,917 Total interest expense 5,040 11,114 18,440 Provision for credit losses (25,825) 50,811 23,480 Noninterest expense 197,152 191,590 185,378 Less: Retirement defined benefits expense (credit)—other than service costs (1,828) 1,813 (472) Add: Gain on sale of real estate — — 10,762 *Expenses-Bank 178,195 251,702 217,008 *Operating income-Bank 128,203 61,809 110,909 Add back: Retirement defined benefits expense (credit)—other than service costs (1,828) 1,813 (472) Add back: Gain on sale of investment securities, net 528 9,275 653 Income before income taxes $ 130,559 $ 69,271 $ 112,034 |
Schedule of balance sheets data | Consolidating balance sheet December 31, 2021 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 42,737 5,606 3,594 — — $ 51,937 Plant and equipment 5,097,033 1,390,361 1,248,589 — — 7,735,983 Less accumulated depreciation (1,757,096) (619,991) (563,430) — — (2,940,517) Construction in progress 159,854 17,129 27,586 — — 204,569 Utility property, plant and equipment, net 3,542,528 793,105 716,339 — — 5,051,972 Nonutility property, plant and equipment, less accumulated depreciation 5,302 115 1,532 — — 6,949 Total property, plant and equipment, net 3,547,830 793,220 717,871 — — 5,058,921 Investment in wholly-owned subsidiaries, at equity 676,237 — — — (676,237) [2] — Current assets Cash and cash equivalents 23,344 5,326 23,422 77 — 52,169 Restricted cash 3,089 — — — — 3,089 Advances to affiliates 1,000 — — — (1,000) [1] — Customer accounts receivable, net 135,949 28,469 22,441 — — 186,859 Accrued unbilled revenues, net 92,469 19,529 17,157 — — 129,155 Other accounts receivable, net 18,624 3,347 3,031 — (17,735) [1] 7,267 Fuel oil stock, at average cost 71,184 12,814 20,080 — — 104,078 Materials and supplies, at average cost 42,006 9,727 20,144 — — 71,877 Prepayments and other 32,140 6,052 7,114 — 725 [1] 46,031 Regulatory assets 58,695 3,051 4,918 — — 66,664 Total current assets 478,500 88,315 118,307 77 (18,010) 667,189 Other long-term assets Operating lease right-of-use assets 78,710 22,442 318 — — 101,470 Regulatory assets 337,903 81,645 79,331 — — 498,879 Other 130,546 17,124 18,510 — (1,014) [1] 165,166 Total other long-term assets 547,159 121,211 98,159 — (1,014) 765,515 Total assets $ 5,249,726 1,002,746 934,337 77 (695,261) $ 6,491,625 Capitalization and liabilities Capitalization Common stock equity $ 2,261,899 332,900 343,260 77 (676,237) [2] $ 2,261,899 Cumulative preferred stock–not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,136,620 234,390 253,417 — — 1,624,427 Total capitalization 3,420,812 574,290 601,677 77 (676,237) 3,920,619 Current liabilities Current portion of operating lease liabilities 45,955 3,378 35 — — 49,368 Current portion of long-term debt, net 39,981 11,994 — — — 51,975 Short-term borrowings-affiliate — 1,000 — — (1,000) [1] — Accounts payable 111,024 26,139 22,844 — — 160,007 Interest and preferred dividends payable 12,442 2,617 2,269 — (3) [1] 17,325 Taxes accrued, including revenue taxes 143,723 33,153 30,679 — 725 [1] 208,280 Regulatory liabilities 22,240 3,247 4,273 — — 29,760 Other 56,752 14,158 18,540 — (17,881) [1] 71,569 Total current liabilities 432,117 95,686 78,640 — (18,159) 588,284 Deferred credits and other liabilities Operating lease liabilities 46,426 19,063 291 — — 65,780 Deferred income taxes 291,027 53,298 64,309 — — 408,634 Regulatory liabilities 695,152 179,267 92,589 — — 967,008 Unamortized tax credits 76,201 14,212 13,532 — — 103,945 Defined benefit pension and other postretirement benefit plans liability 220,480 48,900 53,257 — (857) [1] 321,780 Other 67,511 18,030 30,042 — (8) 115,575 Total deferred credits and other liabilities 1,396,797 332,770 254,020 — (865) 1,982,722 Total capitalization and liabilities $ 5,249,726 1,002,746 934,337 77 (695,261) $ 6,491,625 Consolidating balance sheet December 31, 2020 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating 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) [2] — 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) [1] — 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) [1] 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] $ 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) [1] — Accounts payable 97,102 19,570 17,177 — — 133,849 Interest and preferred dividends payable 14,480 3,138 2,790 — (58) [1] 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) [1] 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 December 31 2021 2020 (in thousands) Assets Cash and due from banks $ 100,051 $ 178,422 Interest-bearing deposits 151,189 114,304 Cash and cash equivalents 251,240 292,726 Investment securities Available-for-sale, at fair value 2,574,618 1,970,417 Held-to-maturity, at amortized cost (fair value of $510,474 and $229,963 at December 31, 2021 and 2020, respectively) 522,270 226,947 Stock in Federal Home Loan Bank, at cost 10,000 8,680 Loans held for investment 5,211,114 5,333,843 Allowance for credit losses (71,130) (101,201) Net loans 5,139,984 5,232,642 Loans held for sale, at lower of cost or fair value 10,404 28,275 Other 590,897 554,656 Goodwill 82,190 82,190 Total assets $ 9,181,603 $ 8,396,533 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 2,976,632 $ 2,598,500 Deposit liabilities–interest-bearing 5,195,580 4,788,457 Other borrowings 88,305 89,670 Other 193,268 183,731 Total liabilities 8,453,785 7,660,358 Commitments and contingencies Common stock 1 1 Additional paid in capital 353,895 351,758 Retained earnings 411,704 369,470 Accumulated other comprehensive income (loss), net of taxes Net unrealized gains (losses) on securities $ (32,037) $ 19,986 Retirement benefit plans (5,745) (37,782) (5,040) 14,946 Total shareholder’s equity 727,818 736,175 Total liabilities and shareholder’s equity $ 9,181,603 $ 8,396,533 December 31 2021 2020 (in thousands) Other assets Bank-owned life insurance $ 177,566 $ 163,265 Premises and equipment, net 202,299 206,134 Accrued interest receivable 20,854 24,616 Mortgage servicing rights 9,950 10,020 Low-income housing investments 110,989 83,435 Other 69,239 67,186 $ 590,897 $ 554,656 Other liabilities Accrued expenses $ 87,905 $ 62,694 Federal and state income taxes payable — 6,582 Cashier’s checks 33,675 38,011 Advance payments by borrowers 9,994 10,207 Other 61,694 66,237 $ 193,268 $ 183,731 |
Schedule of the book value and aggregate fair value by major security type | The major components of investment securities were as follows: Gross unrealized losses Gross unrealized Gross unrealized Estimated fair value Less than 12 months 12 months or longer (dollars in thousands) Amortized Number of issues Fair value Amount Number of issues Fair value Amount December 31, 2021 Available-for-sale U.S. Treasury and federal agency obligations $ 89,714 $ 803 $ (427) $ 90,090 4 $ 44,827 $ (427) — $ — $ — Mortgage-backed securities* 2,482,618 6,511 (51,206) 2,437,923 120 1,845,243 (38,321) 18 271,012 (12,885) Corporate bonds 30,625 655 (102) 31,178 1 12,780 (102) — — — Mortgage revenue bonds 15,427 — — 15,427 — — — — — — $ 2,618,384 $ 7,969 $ (51,735) $ 2,574,618 125 $ 1,902,850 $ (38,850) 18 $ 271,012 $ (12,885) Held-to-maturity US Treasury and Federal agency obligations $ 59,871 $ 168 $ (170) $ 59,869 2 $ 39,594 $ (170) — $ — $ — Mortgage-backed securities* 462,399 1,480 (13,274) 450,605 22 290,883 (7,665) 7 106,483 (5,609) $ 522,270 $ 1,648 $ (13,444) $ 510,474 24 $ 330,477 $ (7,835) 7 $ 106,483 $ (5,609) 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: Amortized Fair December 31, 2021 Cost value (in thousands) Available-for-sale Due in one year or less $ 15,055 $ 15,298 Due after one year through five years 62,461 63,256 Due after five years through ten years 58,250 58,141 Due after ten years — — 135,766 136,695 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 2,482,618 2,437,923 Total available-for-sale securities $ 2,618,384 $ 2,574,618 Held-to-maturity Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 59,871 59,869 Due after ten years — — 59,871 59,869 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 462,399 450,605 Total held-to-maturity securities $ 522,270 $ 510,474 |
Schedule of proceeds, gains and losses from sales of available for sale investment securities | The proceeds, gross gains and losses from sales of available-for-sale securities were as follows: Years ended December 31 2021 2020 2019 (in thousands) Proceeds $ 197,354 $ 169,157 $ 19,810 Gross gains 975 9,275 653 Gross losses (447) — — |
Schedule of interest income from available for sale investment securities | Interest income from taxable and non-taxable investment securities were as follows: Years ended December 31 2021 2020 2019 (in thousands) Taxable $ 42,534 $ 29,760 $ 31,848 Non-taxable 930 769 1,074 $ 43,464 $ 30,529 $ 32,922 |
Schedule of loans receivable | The components of loans were summarized as follows: December 31 2021 2020 (in thousands) Real estate: Residential 1-4 family $ 2,299,212 $ 2,144,239 Commercial real estate 1,056,982 983,865 Home equity line of credit 835,663 963,578 Residential land 19,859 15,617 Commercial construction 91,080 121,424 Residential construction 11,138 11,022 Total real estate 4,313,934 4,239,745 Commercial 793,304 936,748 Consumer 113,966 168,733 Total loans 5,221,204 5,345,226 Less: Deferred fees and discounts (10,090) (11,383) Allowance for credit losses (71,130) (101,201) Total loans, net $ 5,139,984 $ 5,232,642 |
Schedule of allowance for loan losses | The allowance for credit losses (balances and changes) and financing receivables by portfolio segment were as follows: (in thousands) Residential 1-4 family Commercial Home equity Residential land Commercial construction Residential construction Commercial Consumer Total December 31, 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) — — — (1,561) (8,027) (9,700) Recoveries 92 — 113 61 — — 1,468 4,320 6,054 Net (charge-offs) recoveries 25 — 68 61 — — (93) (3,707) (3,646) Provision 1,920 (10,911) (1,224) (24) (1,963) 7 (9,571) (4,659) (26,425) Ending balance $ 6,545 $ 24,696 $ 5,657 $ 646 $ 2,186 $ 18 $ 15,798 $ 15,584 $ 71,130 Average loans outstanding $ 2,155,322 $ 1,046,276 $ 885,759 $ 18,227 $ 111,711 $ 11,361 $ 856,226 $ 135,609 $ 5,220,491 Net charge-offs (recoveries) to average loans — % — % (0.01 %) (0.33 %) — % — % 0.01 % 2.73 % 0.07 % December 31, 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) — (77) (351) — — (5,819) (19,900) (26,154) Recoveries 394 — 63 38 — — 872 3,381 4,748 Net (charge-offs) recoveries 387 — (14) (313) — — (4,947) (16,519) (21,406) Provision (317) 20,346 446 537 1,763 (6) 19,242 7,800 49,811 Ending balance $ 4,600 $ 35,607 $ 6,813 $ 609 $ 4,149 $ 11 $ 25,462 $ 23,950 $ 101,201 Average loans outstanding $ 2,148,848 $ 861,096 $ 1,060,444 $ 13,799 $ 93,740 $ 10,703 $ 935,663 $ 215,994 $ 5,340,287 Net charge-offs (recoveries) to average loans (0.02) % — % — % 2.27 % — % — % 0.53 % 7.65 % 0.40 % December 31, 2019 Allowance for credit losses: Beginning balance $ 1,976 $ 14,505 $ 6,371 $ 479 $ 2,790 $ 4 $ 9,225 $ 16,769 $ 52,119 Charge-offs (26) — (144) (4) — — (6,811) (21,677) (28,662) Recoveries 854 — 17 229 — — 2,351 2,967 6,418 Net (charge-offs) recoveries 828 — (127) 225 — — (4,460) (18,710) (22,244) Provision (424) 548 678 (255) (693) (1) 5,480 18,147 23,480 Ending balance $ 2,380 $ 15,053 $ 6,922 $ 449 $ 2,097 $ 3 $ 10,245 $ 16,206 $ 53,355 Average loans outstanding $ 2,164,759 $ 781,531 $ 1,043,479 $ 14,065 $ 81,937 $ 10,513 $ 620,206 $ 270,340 $ 4,986,830 Net charge-offs (recoveries) to average loans (0.04) % — % 0.01 % (1.60 %) — % — % 0.72 % 6.92 % 0.45 % Ending balance: individually evaluated for impairment $ 898 $ 2 $ 322 $ — $ — $ — $ 1,015 $ 454 $ 2,691 Ending balance: collectively evaluated for impairment $ 1,482 $ 15,051 $ 6,600 $ 449 $ 2,097 $ 3 $ 9,230 $ 15,752 $ 50,664 Financing Receivables: Ending balance $ 2,178,135 $ 824,830 $ 1,092,125 $ 14,704 $ 70,605 $ 11,670 $ 670,674 $ 257,921 $ 5,120,664 Ending balance: individually evaluated for impairment $ 15,600 $ 1,048 $ 12,073 $ 3,091 $ — $ — $ 8,418 $ 507 $ 40,737 Ending balance: collectively evaluated for impairment $ 2,162,535 $ 823,782 $ 1,080,052 $ 11,613 $ 70,605 $ 11,670 $ 662,256 $ 257,414 $ 5,079,927 |
Schedule of allowance for loan commitments | The allowance for loan commitments by portfolio segment were as follows: (in thousands) Home equity Commercial construction Commercial loans Total Year ended December 31, 2021 Allowance for loan commitments: Beginning balance $ 300 $ 3,000 $ 1,000 $ 4,300 Provision 100 700 (200) 600 Ending balance $ 400 $ 3,700 $ 800 $ 4,900 Year ended December 31, 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 — 324 676 1,000 Ending balance $ 300 $ 3,000 $ 1,000 $ 4,300 |
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 loans Converted to term loans Total December 31, 2021 Residential 1-4 family Current $ 791,758 $ 461,683 $ 133,345 $ 64,421 $ 124,994 $ 712,452 $ — $ — $ 2,288,653 30-59 days past due — — — 809 — 2,210 — — 3,019 60-89 days past due — — — — — 1,468 — — 1,468 Greater than 89 days past due — — 2,987 — — 3,085 — — 6,072 791,758 461,683 136,332 65,230 124,994 719,215 — — 2,299,212 Home equity line of credit Current — — — — — — 794,518 39,116 833,634 30-59 days past due — — — — — — 296 313 609 60-89 days past due — — — — — — 16 70 86 Greater than 89 days past due — — — — — — 838 496 1,334 — — — — — — 795,668 39,995 835,663 Residential land Current 10,572 6,794 1,116 532 267 181 — — 19,462 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — 397 — — 397 10,572 6,794 1,116 532 267 578 — — 19,859 Residential construction Current 7,856 3,019 — — 263 — — — 11,138 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 7,856 3,019 — — 263 — — — 11,138 Consumer Current 37,563 15,488 29,383 10,897 302 238 12,740 4,157 110,768 30-59 days past due 202 181 517 234 15 — 156 70 1,375 60-89 days past due 59 127 392 183 8 — 7 106 882 Greater than 89 days past due 14 93 387 192 27 — 141 87 941 37,838 15,889 30,679 11,506 352 238 13,044 4,420 113,966 Commercial real estate Pass 173,794 275,242 49,317 56,490 33,581 259,583 11,602 — 859,609 Special Mention 19,600 3,529 42,935 30,870 20,788 32,824 — — 150,546 Substandard — 684 13,936 1,859 1,805 28,543 — — 46,827 Doubtful — — — — — — — — — 193,394 279,455 106,188 89,219 56,174 320,950 11,602 — 1,056,982 Commercial construction Pass 17,140 43,261 — 11,342 — — 19,337 — 91,080 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 17,140 43,261 — 11,342 — — 19,337 — 91,080 Commercial Pass 266,087 96,963 79,329 56,497 31,019 66,570 96,673 15,510 708,648 Special Mention 40 27,336 10,071 202 439 8,966 15,303 18 62,375 Substandard 427 184 3,737 1,777 4,457 2,961 7,083 1,655 22,281 Doubtful — — — — — — — — — 266,554 124,483 93,137 58,476 35,915 78,497 119,059 17,183 793,304 Total loans $ 1,325,112 $ 934,584 $ 367,452 $ 236,305 $ 217,965 $ 1,119,478 $ 958,710 $ 61,598 $ 5,221,204 Term Loans by Origination Year Revolving Loans (in thousands) 2020 2019 2018 2017 2016 Prior Revolving loans 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 Greater Total Current Total Recorded December 31, 2021 Real estate: Residential 1-4 family $ 3,019 $ 1,468 $ 6,072 $ 10,559 $ 2,288,653 $ 2,299,212 $ — Commercial real estate — — — — 1,056,982 1,056,982 — Home equity line of credit 609 86 1,334 2,029 833,634 835,663 — Residential land — — 397 397 19,462 19,859 — Commercial construction — — — — 91,080 91,080 — Residential construction — — — — 11,138 11,138 — Commercial 700 313 48 1,061 792,243 793,304 — Consumer 1,375 882 941 3,198 110,768 113,966 — Total loans $ 5,703 $ 2,749 $ 8,792 $ 17,244 $ 5,203,960 $ 5,221,204 $ — 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: December 31, 2021 December 31, 2020 (in thousands) With a Related Without a Total With a Related Without a Total Real estate: Residential 1-4 family $ 16,045 $ 3,703 $ 19,748 $ 8,991 $ 2,835 $ 11,826 Commercial real estate 14,104 1,221 15,325 15,847 2,875 18,722 Home equity line of credit 4,227 1,294 5,521 5,791 1,567 7,358 Residential land 97 300 397 108 300 408 Commercial construction — — — — — — Residential construction — — — — — — Commercial 1,446 692 2,138 1,819 3,328 5,147 Consumer 1,845 — 1,845 3,935 — 3,935 Total $ 37,764 $ 7,210 $ 44,974 $ 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) December 31, 2021 December 31, 2020 Real estate: Residential 1-4 family $ 6,949 $ 7,932 Commercial real estate 3,055 3,281 Home equity line of credit 6,021 8,148 Residential land 980 1,555 Commercial construction — — Residential construction — — Commercial 7,860 6,108 Consumer 52 54 Total troubled debt restructured loans accruing interest $ 24,917 $ 27,078 |
Schedule of loan modifications | Loan modifications that occurred during 2021, 2020, and 2019 were as follows: (dollars in thousands) Number of contracts Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Year ended December 31, 2021 Real estate: Residential 1-4 family 14 $ 8,379 $ 442 Commercial real estate — — — Home equity line of credit — — — Residential land 3 799 38 Commercial construction — — — Residential construction — — — Commercial 7 2,931 205 Consumer — — — 24 $ 12,109 $ 685 Year ended December 31, 2020 Real estate: Residential 1-4 family 1 $ 144 $ 6 Commercial real estate 6 20,714 4,439 Home equity line of credit 3 85 11 Residential land 4 668 54 Commercial construction — — — Residential construction — — — Commercial 54 5,380 869 Consumer — — — 68 $ 26,991 $ 5,379 Year ended December 31, 2019 Real estate: Residential 1-4 family 11 $ 1,770 $ 190 Commercial real estate — — — Home equity line of credit 3 442 73 Residential land 3 1,086 — Commercial construction — — — Residential construction — — — Commercial 8 5,523 417 Consumer — — — 25 $ 8,821 $ 680 1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included. |
Schedule of loans modified in TDRS that experienced a payment default of 90 days or more, and for which payment default occurred within one year of the modification | Loans modified in TDRs that experienced a payment default of 90 days or more in 2021, 2020, and 2019 and for which the payment default occurred within one year of the modification, were as follows: Years ended December 31 2021 2020 2019 (dollars in thousands) Number of Recorded Number of Recorded Number of Recorded Troubled debt restructurings that subsequently defaulted Real estate: Residential 1-4 family 1 $ 474 — $ — — $ — Commercial real estate — — — — — — Home equity line of credit — — — — — — Residential land — — — — — — Commercial construction — — — — — — Residential construction — — — — — — Commercial 1 9 — — — — Consumer — — — — — — 2 $ 483 — $ — — $ — |
Schedule of collateral-dependent loans and carrying amount and the total unpaid principal balance of impaired loans | Loans considered collateral-dependent were as follows: December 31, 2021 December 31, 2020 Amortized cost Collateral type Amortized cost Collateral type (in thousands) Real estate: Residential 1-4 family $ 3,493 Residential real estate property $ 2,541 Residential real estate property Commercial real estate 1,221 Commercial real estate property 2,875 Commercial real estate property Home equity line of credit 1,294 Residential real estate property 1,567 Residential real estate property Residential land 300 Residential real estate property 300 Residential real estate property Total real estate 6,308 7,283 Commercial 692 Business assets 934 Business assets Total $ 7,000 $ 8,217 The total carrying amount and the total unpaid principal balance of impaired loans and ASB’s average recorded investment of, and interest income recognized from, impaired loans were as follows: December 31 2019 2019 (in thousands) Recorded Unpaid Related Average Interest With no related allowance recorded Real estate: Residential 1-4 family $ 6,817 $ 7,207 $ — $ 8,169 $ 907 Commercial real estate 195 200 — 16 — Home equity line of credit 1,984 2,135 — 2,020 84 Residential land 3,091 3,294 — 2,662 129 Commercial construction — — — — — Residential construction — — — — — Commercial 1,948 2,285 — 4,534 276 Consumer 2 2 — 21 4 14,037 15,123 — 17,422 1,400 With an allowance recorded Real estate: Residential 1-4 family 8,783 8,835 898 8,390 359 Commercial real estate 853 853 2 886 37 Home equity line of credit 10,089 10,099 322 11,319 567 Residential land — — — 27 — Commercial construction — — — — — Residential construction — — — — — Commercial 6,470 6,470 1,015 6,990 132 Consumer 505 505 454 360 24 26,700 26,762 2,691 27,972 1,119 Total Real estate: Residential 1-4 family 15,600 16,042 898 16,559 1,266 Commercial real estate 1,048 1,053 2 902 37 Home equity line of credit 12,073 12,234 322 13,339 651 Residential land 3,091 3,294 — 2,689 129 Commercial construction — — — — — Residential construction — — — — — Commercial 8,418 8,755 1,015 11,524 408 Consumer 507 507 454 381 28 $ 40,737 $ 41,885 $ 2,691 $ 45,394 $ 2,519 * Since loan was classified as impaired. |
Schedule of amortized intangible assets | Changes in the carrying value of MSRs were as follows: (in thousands) Gross carrying amount 1 Accumulated amortization 1 Valuation allowance Net December 31, 2021 $ 18,674 $ (8,724) $ — $ 9,950 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: (in thousands) 2021 2020 2019 Mortgage servicing rights Balance, January 1 $ 10,280 $ 9,101 $ 8,062 Amount capitalized 3,404 5,096 2,987 Amortization (3,734) (3,917) (1,948) Sale of mortgage servicing rights — — — Other-than-temporary impairment — — — Carrying amount before valuation allowance, December 31 9,950 10,280 9,101 Valuation allowance for mortgage servicing rights Balance, January 1 260 — — Provision (260) 260 — Other-than-temporary impairment — — — Balance, December 31 — 260 — Net carrying value of mortgage servicing rights $ 9,950 $ 10,020 $ 9,101 |
Schedule of key assumptions used in estimating fair value | Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows: December 31 2021 2020 (dollars in thousands) Unpaid principal balance $ 1,481,899 $ 1,450,312 Weighted average note rate 3.38 % 3.68 % Weighted average discount rate 9.25 % 9.25 % Weighted average prepayment speed 9.77 % 17.70 % 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 (dollars in thousands) Fair value Valuation technique Significant unobservable input Range Weighted 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 of MSR to hypothetical adverse changes | The sensitivity analysis of fair value of MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows: December 31 2021 2020 (in thousands) Prepayment rate: 25 basis points adverse rate change $ (714) $ (738) 50 basis points adverse rate change (1,608) (1,445) Discount rate: 25 basis points adverse rate change (129) (68) 50 basis points adverse rate change (256) (135) |
Schedule of deposit liabilities | The summarized components of deposit liabilities were as follows: December 31 2021 2020 (dollars in thousands) Weighted-average stated rate Amount Weighted-average stated rate Amount Savings 0.03 % $ 3,234,646 0.03 % $ 2,873,727 Checking Interest-bearing 0.02 1,344,049 0.02 1,196,675 Noninterest-bearing — 1,472,727 — 1,329,264 Commercial checking — 1,503,905 — 1,269,236 Money market 0.06 192,909 0.09 169,225 Time certificates 0.67 423,976 0.99 548,830 0.05 % $ 8,172,212 0.09 % $ 7,386,957 |
Schedule of maturities of term certificates | The approximate scheduled maturities of time certificates outstanding at December 31, 2021 were as follows: (in thousands) 2022 $ 275,702 2023 60,049 2024 47,248 2025 24,278 2026 13,736 Thereafter 2,963 $ 423,976 |
Schedule of interest expense on deposit liabilities by type | Interest expense on deposit liabilities by type of deposit was as follows: Years ended December 31 2021 2020 2019 (in thousands) Time certificates $ 3,805 $ 7,944 $ 12,675 Savings 802 1,774 1,904 Money market 132 465 953 Interest-bearing checking 242 471 1,298 $ 4,981 $ 10,654 $ 16,830 |
Schedule of securities sold under agreements to repurchase, which provided for repurchase of identical securities | Information concerning securities sold under agreements to repurchase, which provided for the repurchase of identical securities, was as follows: (dollars in thousands) 2021 2020 2019 Amount outstanding as of December 31 $ 88,305 $ 89,670 $ 115,110 Average amount outstanding during the year 88,405 73,738 79,598 Maximum amount outstanding as of any month-end 129,665 100,580 115,110 Weighted-average interest rate as of December 31 0.02 % 0.02 % 0.98 % Weighted-average interest rate during the year 0.02 % 0.42 % 0.96 % Weighted-average remaining days to maturity as of December 31 1 1 1 |
Schedule of securities sold under agreements to repurchase | The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties: (in millions) Gross amount of Gross amount Net amount of Repurchase agreements December 31, 2021 $ 88 $ — $ 88 December 31, 2020 90 — 90 Gross amount not offset in the Balance Sheets (in millions) Net amount of Financial Cash Commercial account holders December 31, 2021 $ 88 $ 161 $ — December 31, 2020 90 92 — Securities sold under agreements to repurchase were summarized as follows: December 31 2021 2020 Maturity Repurchase liability Weighted-average Collateralized by Repurchase liability Weighted-average Collateralized by (dollars in thousands) Overnight $ 88,305 0.02 % $ 160,847 $ 89,670 0.02 % $ 92,478 1 to 29 days — — % — — — % — 30 to 90 days — — % — — — % — Over 90 days — — % — — — % — $ 88,305 0.02 % $ 160,847 $ 89,670 0.02 % $ 92,478 |
Schedule of actual and minimum required capital amounts and ratios | The tables below set forth actual and minimum required capital amounts and ratios: Actual Minimum required Required to be well capitalized (dollars in thousands) Capital Ratio Capital Ratio Capital Ratio December 31, 2021 Tier 1 leverage $ 714,789 7.86 % $ 363,630 4.00 % $ 454,538 5.00 % Common equity tier 1 714,789 13.29 % 242,072 4.50 % 349,659 6.50 % Tier 1 capital 714,789 13.29 % 322,762 6.00 % 430,350 8.00 % Total capital 769,836 14.31 % 430,350 8.00 % 537,937 10.00 % December 31, 2020 Tier 1 leverage 677,786 8.38 % 323,700 4.00 % 404,625 5.00 % |
Schedule of notional amounts and fair value of derivatives | The notional amount and fair value of ASB’s derivative financial instruments were as follows: December 31 2021 2020 (in thousands) Notional amount Fair value Notional amount Fair value Interest rate lock commitments $ 39,377 $ 638 $ 120,980 $ 4,536 Forward commitments 38,000 (11) 100,500 (500) |
Schedule of derivative financial instruments, fair values, and balance sheet location | ASB’s derivative financial instruments, their fair values, and balance sheet location were as follows: Derivative Financial Instruments Not Designated as Hedging Instruments 1 December 31 2021 2020 (in thousands) Asset derivatives Liability derivatives Asset derivatives Liability derivatives Interest rate lock commitments $ 638 $ — $ 4,536 $ — Forward commitments — 11 — 500 $ 638 $ 11 $ 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 amount and location of net gains or losses | The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in ASB’s statements of income: Derivative Financial Instruments Not Designated Location of net gains as Hedging Instruments (losses) recognized in Years ended December 31 (in thousands) the Statements of Income 2021 2020 2019 Interest rate lock commitments Mortgage banking income $ (3,898) $ 4,239 $ 206 Forward commitments Mortgage banking income 489 (458) 1 $ (3,409) $ 3,781 $ 207 |
Schedule of off balance sheet arrangements | The following is a summary of outstanding off-balance sheet arrangements: December 31 2021 2020 (in thousands) Unfunded commitments to extend credit: Home equity line of credit $ 1,181,496 $ 1,248,773 Commercial and commercial real estate 612,158 574,281 Consumer 62,090 69,168 Residential 1-4 family 44,262 57,862 Commercial and financial standby letters of credit 11,723 13,718 Total $ 1,911,729 $ 1,963,802 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | December 31 2021 2020 (dollars in thousands) Long-term debt of Utilities, net of unamortized debt issuance costs 1 $ 1,676,402 $ 1,561,302 HEI 5.67% senior notes, due 2021 — 50,000 HEI 2.99% term loan, due 2022 150,000 150,000 HEI 3.99% senior notes, due 2023 50,000 50,000 HEI 4.58% senior notes, due 2025 50,000 50,000 HEI 4.72% senior notes, due 2028 100,000 100,000 HEI 2.82% senior notes, due 2028 24,000 — HEI 2.48% senior notes, due 2028 30,000 — HEI 2.98% senior notes, due 2030 50,000 50,000 HEI 3.15% senior notes, due 2031 51,000 — HEI 2.78% senior notes, due 2031 25,000 — HEI 3.74% senior notes, due 2051 20,000 — Hamakua Energy 4.02% non-recourse notes, due 2030 2 52,166 56,030 Mauo LIBOR + 1.375% loan, due 2023 3 21,702 41,046 Mauo 4.90% non-recourse term loan, due 2034 2 12,686 — Kaʻieʻie Waho 2.79% non-recourse loan, due 2031 2 12,145 13,000 Less unamortized debt issuance costs (3,164) (2,249) $ 2,321,937 $ 2,119,129 1 See components of “Total long-term debt” and unamortized debt issuance costs in Hawaiian Electric and subsidiaries’ Consolidated Statements of Capitalization. 2 Secured by real and personal property of the respective entity. |
Schedule of note purchases and private placements | The following table displays the draw date for the $75 million draw and the required draw date of the remaining $50 million of HEI notes to be issued. 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) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income | Changes in the balances of each component of 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, 2018 $ (24,423) $ (436) $ (25,751) $ (50,610) $ 99 Current period other comprehensive income (loss) and reclassifications, net of taxes 26,904 (1,177) 4,844 30,571 (1,378) Balance, December 31, 2019 2,481 (1,613) (20,907) (20,039) (1,279) Current period other comprehensive income (loss) and reclassifications, net of taxes 17,505 (1,750) 3,020 18,775 (1,640) Balance, December 31, 2020 19,986 (3,363) (17,887) (1,264) (2,919) Current period other comprehensive income (loss) and reclassifications, net of taxes (52,023) (275) 1,029 (51,269) (361) Balance, December 31, 2021 $ (32,037) $ (3,638) $ (16,858) $ (52,533) $ (3,280) |
Schedule of reclassifications out of AOCI | Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Affected line item in the Statement of Years ended December 31 2021 2020 2019 (in thousands) HEI consolidated Net realized gains on securities included in net income $ (387) $ (1,638) $ (478) Gain on sale of investment securities, net Net realized losses on derivatives qualifying as cash flow hedges 37 — — Interest expense Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 19,253 23,689 10,107 See Note 10 for additional details Impact of D&Os of the PUC included in regulatory assets (171,345) 39,860 (16,177) See Note 10 for additional details Total reclassifications $ (152,442) $ 61,911 $ (6,548) Hawaiian Electric consolidated Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost $ 19,461 $ 21,550 $ 9,550 See Note 10 for additional details Impact of D&Os of the PUC included in regulatory assets (171,345) 39,860 (16,177) See Note 10 for additional details Total reclassifications $ (151,884) $ 61,410 $ (6,627) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease cost | Amounts related to the Company’s total lease cost and cash flows arising from lease transactions are as follows: HEI consolidated Hawaiian Electric consolidated Year ended December 31, 2021 Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total (dollars in thousands) Operating lease cost $ 14,184 $ 66,070 $ 80,254 $ 8,578 $ 66,070 $ 74,648 Variable lease cost 14,360 257,472 271,832 11,586 257,472 269,058 Sublease income (2,515) — (2,515) (2,515) — (2,515) Total lease cost $ 26,029 $ 323,542 $ 349,571 $ 17,649 $ 323,542 $ 341,191 Other information Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases $ 11,239 $ 62,136 $ 73,375 $ 6,168 $ 62,136 $ 68,304 Weighted-average remaining lease term—operating leases (in years) 9.1 2.5 6.1 10.0 2.5 5.9 Weighted-average discount rate—operating leases 2.84 % 3.63 % 3.18 % 2.98 % 3.63 % 3.31 % HEI consolidated Hawaiian Electric consolidated Year ended December 31, 2020 Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total (dollars in thousands) Operating lease cost $ 11,201 $ 63,319 $ 74,520 $ 6,022 $ 63,319 $ 69,341 Variable lease cost 12,765 217,173 229,938 9,842 217,173 227,015 Total lease cost $ 23,966 $ 280,492 $ 304,458 $ 15,864 $ 280,492 $ 296,356 Other information Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases $ 10,783 $ 60,801 $ 71,584 $ 6,223 $ 60,801 $ 67,024 Weighted-average remaining lease term—operating leases (in years) 8.9 1.8 4.4 10.1 1.8 3.8 Weighted-average discount rate—operating leases 2.87 % 4.08 % 3.61 % 3.20 % 4.08 % 3.84 % |
Schedule of operating lease liabilities | The following table summarizes the maturity of our operating lease liabilities as of December 31, 2021: HEI consolidated Hawaiian Electric consolidated (in millions) Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total 2022 $ 11 $ 46 $ 57 $ 6 $ 46 $ 52 2023 13 4 17 8 4 12 2024 11 4 15 7 4 11 2025 7 4 11 5 4 9 2026 7 3 10 5 3 8 Thereafter 36 4 40 30 4 34 Total lease payments 85 65 150 61 65 126 Less: Imputed interest (11) (2) (13) (9) (2) (11) Total present value of lease payments 1 $ 74 $ 63 $ 137 $ 52 $ 63 $ 115 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following tables disaggregate revenues by major source, timing of revenue recognition, and segment: Year ended December 31, 2021 Year ended December 31, 2020 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 830,653 $ — $ — $ 830,653 $ 766,609 $ — $ — $ 766,609 Electric energy sales - commercial 791,424 — — 791,424 703,516 — — 703,516 Electric energy sales - large light and power 837,834 — — 837,834 751,464 — — 751,464 Electric energy sales - other 10,770 — — 10,770 8,054 — — 8,054 Bank fees — 46,658 — 46,658 — 38,887 — 38,887 Other sales — — 4,086 4,086 — — 921 921 Total revenues from contracts with customers 2,470,681 46,658 4,086 2,521,425 2,229,643 38,887 921 2,269,451 Revenues from other sources Regulatory revenue 40,069 — — 40,069 11,869 — — 11,869 Bank interest and dividend income — 242,266 — 242,266 — 244,663 — 244,663 Other bank noninterest income — 17,474 — 17,474 — 29,961 — 29,961 Other 28,886 — 259 29,145 23,808 — 23 23,831 Total revenues from other sources 68,955 259,740 259 328,954 35,677 274,624 23 310,324 Total revenues $ 2,539,636 $ 306,398 $ 4,345 $ 2,850,379 $ 2,265,320 $ 313,511 $ 944 $ 2,579,775 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 46,658 $ — $ 46,658 $ — $ 38,887 $ — $ 38,887 Services/goods transferred over time 2,470,681 — 4,086 2,474,767 2,229,643 — 921 2,230,564 Total revenues from contracts with customers $ 2,470,681 $ 46,658 $ 4,086 $ 2,521,425 $ 2,229,643 $ 38,887 $ 921 $ 2,269,451 |
Retirement benefits (Tables)
Retirement benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of changes in the obligations and assets of the Company's retirement benefit plans and the changes in AOCI (gross) and the funded status | The changes in the obligations and assets of the Company’s and Utilities’ retirement benefit plans and the changes in AOCI (gross) for 2021 and 2020 and the funded status of these plans and amounts related to these plans reflected in the Company’s and Utilities’ consolidated balance sheets as of December 31, 2021 and 2020 were as follows: 2021 2020 (in thousands) Pension Other Pension Other HEI consolidated Benefit obligation, January 1 $ 2,624,530 $ 226,421 $ 2,278,283 $ 215,639 Service cost 81,432 2,827 73,387 2,537 Interest cost 75,361 6,122 81,335 7,407 Actuarial (gains) losses (43,300) (8,527) 275,973 9,785 Participants contributions — 2,943 — 2,768 Benefits paid and expenses (93,384) (11,635) (84,448) (11,715) Benefit obligation, December 31 2,644,639 218,151 2,624,530 226,421 Fair value of plan assets, January 1 2,089,491 219,873 1,799,200 200,831 Actual return on plan assets 271,443 28,130 302,566 27,678 Employer contributions 51,777 — 70,844 — Participants contributions — 2,943 — 2,768 Benefits paid and expenses (91,966) (11,635) (83,119) (11,404) Fair value of plan assets, December 31 2,320,745 239,311 2,089,491 219,873 Accrued benefit asset (liability), December 31 $ (323,894) $ 21,160 $ (535,039) $ (6,548) Other assets $ 23,675 $ 21,663 $ 25,851 $ — Defined benefit pension and other postretirement benefit plans liability (347,569) (503) (560,890) (6,548) Accrued benefit asset (liability), December 31 $ (323,894) $ 21,160 $ (535,039) $ (6,548) AOCI debit, January 1 (excluding impact of PUC D&Os) $ 557,564 $ 2,395 $ 503,821 $ 6,610 Recognized during year – prior service credit (cost) — 1,533 (8) 1,761 Recognized during year – net actuarial loss (27,245) (203) (33,456) (208) Occurring during year – net actuarial loss (gain) (182,520) (23,700) 87,207 (5,768) AOCI debit before cumulative impact of PUC D&Os, December 31 347,799 (19,975) 557,564 2,395 Cumulative impact of PUC D&Os (324,162) 19,166 (534,594) (1,177) AOCI debit/(credit), December 31 $ 23,637 $ (809) $ 22,970 $ 1,218 Net actuarial loss (gain) $ 347,799 $ (18,172) $ 557,564 $ 5,731 Prior service gain — (1,803) — (3,336) AOCI debit before cumulative impact of PUC D&Os, December 31 347,799 (19,975) 557,564 2,395 Cumulative impact of PUC D&Os (324,162) 19,166 (534,594) (1,177) AOCI debit/(credit), December 31 23,637 (809) 22,970 1,218 Income taxes (benefits) (6,199) 209 (5,988) (313) AOCI debit/(credit), net of taxes (benefits), December 31 $ 17,438 $ (600) $ 16,982 $ 905 As shown in the table above, as of December 31, 2021, the other postretirement benefit plans with APBOs in excess of plan assets are unfunded plans, and as of December 31, 2020, all of the other postretirement benefit plans had APBOs in excess of plan assets. 2021 2020 (in thousands) Pension Other Pension Other Hawaiian Electric consolidated Benefit obligation, January 1 $ 2,440,758 $ 217,074 $ 2,110,904 $ 207,073 Service cost 79,463 2,802 71,604 2,515 Interest cost 70,235 5,875 75,484 7,103 Actuarial (gains) losses (39,755) (7,779) 260,102 9,151 Participants contributions — 2,886 — 2,717 Benefits paid and expenses (85,425) (11,388) (77,336) (11,485) Transfers (332) — — — Benefit obligation, December 31 2,464,944 209,470 2,440,758 217,074 Fair value of plan assets, January 1 1,909,730 216,315 1,640,417 197,564 Actual return on plan assets 266,922 27,712 276,453 27,207 Employer contributions 51,079 — 69,720 — Participants contributions — 2,886 — 2,717 Benefits paid and expenses (84,852) (11,388) (76,860) (11,173) Other (262) — — — Fair value of plan assets, December 31 2,142,617 235,525 1,909,730 216,315 Accrued benefit asset (liability), December 31 $ (322,327) $ 26,055 $ (531,028) $ (759) Other assets $ — $ 26,055 $ — $ — Other liabilities (short-term) (547) — (535) (720) Defined benefit pension and other postretirement benefit plans liability (321,780) — (530,493) (39) Accrued benefit asset (liability), December 31 $ (322,327) $ 26,055 $ (531,028) $ (759) AOCI debit, January 1 (excluding impact of PUC D&Os) $ 538,521 $ 1,181 $ 478,078 $ 5,730 Recognized during year – prior service credit (cost) — 1,530 (9) 1,758 Recognized during year – net actuarial loss (27,534) (206) (30,566) (207) Occurring during year – net actuarial loss (gain) (181,342) (22,736) 91,018 (6,100) AOCI debit before cumulative impact of PUC D&Os, December 31 329,645 (20,231) 538,521 1,181 Cumulative impact of PUC D&Os (324,162) 19,166 (534,594) (1,177) AOCI debit/(credit), December 31 $ 5,483 $ (1,065) $ 3,927 $ 4 Net actuarial loss (gain) $ 329,645 $ (18,434) $ 538,521 $ 4,508 Prior service gain — (1,797) — (3,327) AOCI debit before cumulative impact of PUC D&Os, December 31 329,645 (20,231) 538,521 1,181 Cumulative impact of PUC D&Os (324,162) 19,166 (534,594) (1,177) AOCI debit/(credit), December 31 5,483 (1,065) 3,927 4 Income taxes (benefits) (1,412) 274 (1,011) (1) AOCI debit/(credit), net of taxes (benefits), December 31 $ 4,071 $ (791) $ 2,916 $ 3 |
Schedule of asset allocation of plan assets | The asset allocation of defined benefit retirement plans to equity and fixed income securities (excluding cash) and related investment policy targets and ranges were as follows: Pension benefits 1 Other benefits 2 Investment policy Investment policy December 31 2021 2020 Target Range 3 2021 2020 Target Range 3 Assets held by category U.S. equity securities 59 % 58 % 52 % 45-65% 58 % 57 % 52 % 45-65% Non-U.S equity securities 13 14 15 5-25% 15 16 15 5-25% Fixed income securities 27 28 30 20-40% 27 27 30 20-40% Private equity 1 — 3 0-5% — — 3 0-5% 100 % 100 % 100 % 100 % 100 % 100 % 1 Asset allocation (excluding cash) is applicable to only HEI and the Utilities. As of December 31, 2021 and 2020, nearly all of ASB’s pension assets were invested in fixed income securities. 2 Asset allocation (excluding cash) is applicable to only HEI and the Utilities. ASB does not fund its other benefits. 3 Broad range for equity securities is a minimum of 60% and a maximum of 80% for pension benefits and other benefits. The fair values of the investments shown in the tables below represent the Company’s best estimates of the amounts that would be received upon sale of those assets in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset at the measurement date, the fair value measurement reflects the Company’s judgments about the assumptions that market participants would use in pricing the asset. Those judgments are developed by the Company based on the best information available in the circumstances. The Company used the following valuation methodologies for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2021 and 2020. Equity securities equity index and exchange-traded funds, U.S. Treasury fixed income securities and public mutual funds (Level 1) . Equity securities, equity index and exchange-traded funds, U.S. Treasury fixed income securities and public mutual funds are valued at the closing price reported on the active market on which the individual securities or funds are traded. Fixed income securities, preferred securities (Level 2) . Fixed income and preferred securities, other than those issued by the U.S. Treasury, are valued based on yields currently available on comparable securities of issuers with similar credit ratings. Assets held in various trusts for the retirement benefit plans are measured at fair value on a recurring basis and were as follows: Pension benefits Other benefits Fair value measurements using Fair value measurements using (in millions) December 31 Quoted prices in active markets for identical assets Significant other observable inputs December 31 Quoted prices in active markets for identical assets Significant other observable inputs 2021 U.S. equity securities $ 432 $ 431 $ 1 $ 53 $ 53 $ — Non-U.S. equity securities 188 188 — 24 24 — U.S. equity index and exchange-traded funds 830 830 — 84 84 — Non-U.S. equity investments at net asset value (NAV) 96 — — 12 — — Total equity investments 1,546 1,449 1 173 161 — Fixed income securities and public mutual funds 393 146 247 58 56 2 Fixed income investments at NAV 307 — — 5 — — Total fixed income investments 700 146 247 63 56 2 Private equity at NAV 22 — — — — — Cash equivalents, fund and at NAV 50 15 — 3 3 — Total 2,318 $ 1,610 $ 248 239 $ 220 $ 2 Cash, receivables and payables, net 3 — Fair value of plan assets $ 2,321 $ 239 2020 U.S. equity securities $ 368 $ 368 $ — $ 46 $ 46 $ — Non-U.S. equity securities 172 172 — 22 22 — U.S. equity index and exchange-traded funds 734 734 — 77 77 — Non-U.S. equity investments at NAV 102 — — 13 — — Total equity investments 1,376 1,274 — 158 145 — Fixed income securities and public mutual funds 363 105 258 53 51 2 Fixed income investments at NAV 278 — — 5 — — Total fixed income investments 641 105 258 58 51 2 Cash equivalents at NAV 68 25 — 4 3 — Total 2,085 $ 1,404 $ 258 220 $ 199 $ 2 Cash, receivables and payables, net 4 — Fair value of plan assets $ 2,089 $ 220 The fair value of investments measured at NAV presented in the table above is intended to permit reconciliation to the fair value of plan assets amounts. The following table represents assets measured at NAV. Pension benefits Other benefits Measured at NAV December 31 Redemption frequency Redemption notice period December 31 Redemption frequency Redemption notice period (in millions) 2021 Non-U.S. equity funds (a) $ 96 Daily-Monthly 5-30 days $ 12 Daily-Monthly 5-30 days Fixed income investments (b) 307 Daily 15 days 5 Daily 15 days Private equity (c) 22 NA NA — NA NA Cash equivalents (d) 35 Daily 0-1 day — Daily 0-1 day $ 460 $ 17 2020 Non-U.S. equity funds (a) $ 102 Daily-Monthly 5-30 days $ 13 Daily-Monthly 5-30 days Fixed income investments (b) 278 Daily 15 days 5 Daily 15 days Cash equivalents (d) 43 Daily 0-1 day 1 Daily 0-1 day $ 423 $ 19 NA Not applicable None of the investments presented in the tables above have unfunded commitments, other than private equity disclosed in (c) below. (a) Represents investments in funds that primarily invest in non-U.S., emerging markets equities. Redemption frequency for pension benefits assets as of December 31, 2021 were: daily, 61% and monthly, 39%, and as of December 31, 2020 were daily, 62% and monthly, 38%. Redemption frequency for other benefits assets as of December 31, 2021 were: daily, 57% and monthly, 43% and as of December 31, 2020 were: daily, 58% and monthly, 42%. (b) Represents investments in fixed income securities invested in a US-dollar denominated fund that seeks to exceed the Barclays Capital Long Corporate A or better Index through investments in US-dollar denominated fixed income securities and commingled vehicles. (c) Represents investment in a private equity fund. The fund is valued as reported by the General Partner, based on the valuation of the underlying investments. As of December 31, 2021, the unfunded commitment of the private equity fund was $66 million; the fund does not allow redemptions but may be dissolved with six months written notice. The termination date of the fund is November 1, 2100, unless dissolved earlier. (d) Represents investments in cash equivalent funds. This class includes funds that invest primarily in securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. For pension benefits, the fund may also invest in fixed income securities of investment grade issuers. |
Schedule of weighted-average assumptions used in accounting for plans | The following weighted-average assumptions were used in the accounting for the plans: Pension benefits Other benefits December 31 2021 2020 2019 2021 2020 2019 Benefit obligation Discount rate 1 3.05 % 2.92 % 3.61 % 3.07 % 2.83 % 3.52 % Rate of compensation increase 3.5 3.5 3.5 NA NA NA Net periodic pension/benefit cost (years ended) Discount rate 2 2.92 3.61 4.31 2.83 3.52 4.34 Expected return on plan assets 3 7.25 7.25 7.25 7.25 7.25 7.25 Rate of compensation increase 4 3.5 3.5 3.5 NA NA NA NA Not applicable 1 HEI and the Utilities pension benefits discount rate only at December 31, 2021, 2020 and 2019. ASB’s pension benefits discount rate at December 31, 2021, 2020 and 2019 was 3.04%, 2.76% and 3.49%, respectively. All other disclosed rates apply to the Company and the Utilities. 2 ASB’s pension benefits discount rate for the year ended December 31, 2021 and 2020 was 2.76% and 3.49%. All other disclosed rates apply to the Company and the Utilities. 3 HEI and the Utilities’ plan assets only (gross return). For 2021, 2020 and 2019, ASB’s expected return on plan assets was 2.96%, 3.69% and 4.51%, respectively. 4 HEI and the Utilities use a graded rate of compensation increase assumption based on age. The rate provided above is an average across all future years of service for the current population. NA for ASB. |
Schedule of components of net periodic benefit cost for consolidated HEI | The components of NPPC and NPBC were as follows: Pension benefits Other benefits (in thousands) 2021 2020 2019 2021 2020 2019 HEI consolidated Service cost $ 81,432 $ 73,387 $ 62,135 $ 2,827 $ 2,537 $ 2,209 Interest cost 75,361 81,335 84,267 6,122 7,407 8,004 Expected return on plan assets (132,223) (113,800) (111,989) (12,957) (12,124) (12,356) Amortization of net prior service (gain) cost — 8 (42) (1,533) (1,761) (1,806) Amortization of net actuarial losses 27,245 33,456 15,479 203 208 (13) Net periodic pension/benefit cost 51,815 74,386 49,850 (5,338) (3,733) (3,962) Impact of PUC D&Os 27,963 20,997 48,143 4,839 3,179 3,258 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 79,778 $ 95,383 $ 97,993 $ (499) $ (554) $ (704) Hawaiian Electric consolidated Service cost $ 79,463 $ 71,604 $ 60,461 $ 2,802 $ 2,515 $ 2,191 Interest cost 70,235 75,484 77,851 5,875 7,103 7,673 Expected return on plan assets (125,404) (107,369) (104,632) (12,755) (11,957) (12,180) Amortization of net prior service (gain) cost — 9 7 (1,530) (1,758) (1,803) Amortization of net actuarial losses 27,534 30,566 14,658 206 207 — Net periodic pension/benefit cost 51,828 70,294 48,345 (5,402) (3,890) (4,119) Impact of PUC D&Os 27,963 20,997 48,143 4,839 3,179 3,258 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 79,791 $ 91,291 $ 96,488 $ (563) $ (711) $ (861) |
Schedule of projected benefit obligations and assets | Additional information on the defined benefit pension plans’ accumulated benefit obligations (ABOs), which do not consider projected pay increases (unlike the PBOs shown in the table above), and pension plans with ABOs and PBOs in excess of plan assets were as follows: HEI consolidated Hawaiian Electric consolidated December 31 2021 2020 2021 2020 (in billions) Defined benefit plans - ABOs $ 2.3 $ 2.3 $ 2.1 $ 2.1 Defined benefit plans with ABO in excess of plan assets ABOs — 2.1 — 2.1 Fair value of plan assets — 2.0 — 1.9 Defined benefit plans with PBOs in excess of plan assets PBOs 2.5 2.5 2.5 2.4 Fair value of plan assets 2.2 2.0 2.1 1.9 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 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: (in millions) 2021 2020 2019 HEI consolidated Share-based compensation expense 1 $ 9.1 $ 5.8 $ 10.0 Income tax benefit 1.4 1.0 1.4 Hawaiian Electric consolidated Share-based compensation expense 1 2.7 1.8 3.2 Income tax benefit 0.6 0.4 0.6 1 For 2021, 2020 and 2019, the Company has not capitalized any share-based compensation. |
Schedule of common stock granted to nonemployee directors | HEI granted HEI common stock to nonemployee directors under the 2011 Director Plan as follows: (dollars in millions) 2021 2020 2019 Shares granted 29,816 36,100 36,344 Fair value $ 1.3 $ 1.3 $ 1.6 Income tax benefit 0.3 0.3 0.4 |
Schedule of restricted stock units | Information about HEI’s grants of restricted stock units was as follows: 2021 2020 2019 Shares (1) Shares (1) Shares (1) Outstanding, January 1 193,939 $ 40.89 207,641 $ 35.36 200,358 $ 33.05 Granted 137,582 34.66 78,595 47.99 96,565 37.82 Vested (79,623) 38.51 (77,719) 34.19 (76,813) 32.61 Forfeited (18,450) 39.92 (14,578) 36.20 (12,469) 34.20 Outstanding, December 31 233,448 $ 38.10 193,939 $ 40.89 207,641 $ 35.36 Total weighted-average grant-date fair value of shares granted (in millions) $ 4.8 $ 3.8 $ 3.7 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Schedule of long-term incentive plan (LTIP) linked to total return to shareholders | Information about HEI’s LTIP grants linked to TSR was as follows: 2021 2020 2019 Shares (1) Shares (1) Shares (1) Outstanding, January 1 89,222 $ 42.10 96,402 $ 39.62 65,578 $ 38.81 Granted 46,024 41.12 24,630 48.62 35,215 41.07 Vested (issued or unissued and cancelled) (32,355) 38.20 (29,409) 39.51 — — Forfeited (11,917) 43.07 (2,401) 41.22 (4,391) 39.19 Outstanding, December 31 90,974 $ 42.86 89,222 $ 42.10 96,402 $ 39.62 Total weighted-average grant-date fair value of shares granted (in millions) $ 1.9 $ 1.2 $ 1.4 (1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. |
Schedule of assumptions used to determine the fair value of Long-Term Incentive Plan (LTIP) linked to total return to shareholders (TRS) | The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TSR and the resulting fair value of LTIP awards granted: 2021 2020 2019 Risk-free interest rate 0.19 % 1.39 % 2.48 % Expected life in years 3 3 3 Expected volatility 29.9 % 13.1 % 15.8 % Range of expected volatility for Peer Group 25.6% to 102.9% 13.6% to 95.4% 15.0% to 73.2% Grant date fair value (per share) $ 41.12 $ 48.62 $ 41.07 |
Schedule of long-term incentive plan (LTIP) linked to other performance conditions | Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: 2021 2020 2019 Shares (1) Shares (1) Shares (1) Outstanding, January 1 220,715 $ 41.03 403,768 $ 35.15 276,169 $ 33.80 Granted 184,102 34.37 98,522 48.10 140,855 37.78 Vested (43,155) 34.12 (135,804) 33.48 — — Increase above target (cancelled) (7,646) 39.06 (136,163) 36.44 4,314 33.53 Forfeited (47,674) 38.74 (9,608) 38.36 (17,570) 34.66 Outstanding, December 31 306,342 $ 38.42 220,715 $ 41.03 403,768 $ 35.15 Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) $ 6.3 $ 4.7 $ 5.3 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of income taxes attributable to net income for common stock | The components of income taxes attributable to net income for common stock were as follows: HEI consolidated Hawaiian Electric consolidated Years ended December 31 2021 2020 2019 2021 2020 2019 (in thousands) Federal Current $ 51,455 $ 23,207 $ 28,736 $ 42,794 $ 31,950 $ 21,751 Deferred (11,689) (4,215) (4,353) (12,109) (5,408) (7,793) Deferred tax credits, net* 4,611 10,979 13,410 302 1,549 13,155 44,377 29,971 37,793 30,987 28,091 27,113 State Current 12,119 8,430 10,472 4,861 3,768 5,579 Deferred 6,290 2,509 (10,732) 8,279 8,559 (8,491) Deferred tax credits, net* 21 — 14,104 21 — 14,104 18,430 10,939 13,844 13,161 12,327 11,192 Total $ 62,807 $ 40,910 $ 51,637 $ 44,148 $ 40,418 $ 38,305 * In 2021 and 2020, primarily represents federal tax credits related to Mauo’s solar-plus-storage project, deferred and amortized starting in 2021 and 2020, respectively. In 2019, primarily represents federal and state credits related to Hawaiian Electric’s West Loch PV project, deferred and amortized starting in 2020. |
Schedule of reconciliation of amount of income taxes computed at federal statutory rate | A reconciliation of the amount of income taxes computed at the federal statutory rate to the amount provided in the consolidated statements of income was as follows: HEI consolidated Hawaiian Electric consolidated Years ended December 31 2021 2020 2019 2021 2020 2019 (in thousands) Amount at the federal statutory income tax rate $ 65,281 $ 50,531 $ 56,996 $ 46,995 $ 44,468 $ 41,399 Increase (decrease) resulting from: State income taxes, net of federal income tax benefit 15,735 9,448 11,658 10,323 9,658 8,703 Net deferred tax asset (liability) adjustment related to the Tax Act (9,886) (11,267) (9,255) (9,886) (11,267) (9,255) Other, net (8,323) (7,802) (7,762) (3,284) (2,441) (2,542) Total $ 62,807 $ 40,910 $ 51,637 $ 44,148 $ 40,418 $ 38,305 Effective income tax rate 20.2 % 17.0 % 19.0 % 19.7 % 19.1 % 19.4 % |
Schedule of deferred tax assets and liabilities | The tax effects of book and tax basis differences that give rise to deferred tax assets and liabilities were as follows: HEI consolidated Hawaiian Electric consolidated December 31 2021 2020 2021 2020 (in thousands) Deferred tax assets Regulatory liabilities, excluding amounts attributable to property, plant and equipment $ 87,817 $ 93,684 $ 87,817 $ 93,684 Operating lease liabilities 35,449 41,582 29,661 34,586 Revenue taxes 35,040 22,726 35,040 22,726 Allowance for bad debts 26,217 31,973 7,156 4,835 Other 1 58,518 44,127 20,529 24,741 Total deferred tax assets 243,041 234,092 180,203 180,572 Deferred tax liabilities Property, plant and equipment related 500,659 487,209 490,713 473,734 Operating lease right-of-use assets 35,271 41,370 29,661 34,586 Regulatory assets, excluding amounts attributable to property, plant and equipment 23,700 25,841 23,700 25,841 Retirement benefits 6,863 18,407 8,261 20,537 Other 61,308 56,354 36,502 23,672 Total deferred tax liabilities 627,801 629,181 588,837 578,370 Net deferred income tax liability $ 384,760 $ 395,089 $ 408,634 $ 397,798 1 As of December 31, 2021, HEI consolidated and Hawaiian Electric consolidated have deferred tax assets of $11.0 million and $2.5 million respectively, relating to the benefit of state tax credit carryforwards of $14.6 million and $3.4 million respectively. These state tax credit carryforwards primarily relate to the West Loch PV project and do not expire. The Company concluded that as of December 31, 2021, a valuation allowance is not required. |
Schedule of changes in total unrecognized tax benefits | The following is a reconciliation of the Company’s liability for unrecognized tax benefits for 2021, 2020 and 2019. HEI consolidated Hawaiian Electric consolidated (in millions) 2021 2020 2019 2021 2020 2019 Unrecognized tax benefits, January 1 $ 12.7 $ 2.2 $ 2.1 $ 12.7 $ 1.7 $ 1.6 Additions based on tax positions taken during the year 2.8 0.2 0.5 0.3 0.2 0.5 Reductions based on tax positions taken during the year (0.5) — — — — — Additions for tax positions of prior years 7.6 11.6 0.1 0.2 11.6 0.1 Reductions for tax positions of prior years (5.5) (0.1) (0.2) (1.6) (0.1) (0.2) Lapses of statute of limitations — (0.2) (0.3) — (0.2) (0.3) Settlement — (1.0) — — (0.5) — Unrecognized tax benefits, December 31 $ 17.1 $ 12.7 $ 2.2 $ 11.6 $ 12.7 $ 1.7 |
Cash flows (Tables)
Cash flows (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash and noncash activity | Years ended December 31 2021 2020 2019 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates, net of amounts capitalized $ 98 $ 98 $ 107 Income taxes paid (net of refundable credits) 41 32 56 Income taxes refunded (including refundable credits) 7 3 4 Hawaiian Electric consolidated Interest paid to non-affiliates, net of amounts capitalized 71 65 68 Income taxes paid (net of refundable credits) 45 41 55 Income taxes refunded (including refundable credits) 5 3 4 Supplemental disclosures of noncash activities HEI consolidated Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 48 44 64 Loans transferred from held for investment to held for sale (investing) 61 — — Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) 3 — — Right-of-use assets obtained in exchange for operating lease obligations (investing) 44 26 7 Common stock issued (gross) for director and executive/management compensation (financing) 1 7 16 5 Obligations to fund low income housing investments, net (investing) 36 25 11 Hawaiian Electric consolidated Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 43 41 62 Right-of-use assets obtained in exchange for operating lease obligations (investing) 44 17 2 HEI Consolidated and Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 8 10 9 Reduction of long-term debt from funds previously transferred for repayment (financing) — 82 — 1 The amounts shown represent the market value of common stock issued for director and executive/management compensation and withheld to satisfy statutory tax liabilities. |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 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 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Total December 31, 2021 Financial assets HEI consolidated Available-for-sale investment securities $ 2,574,618 $ — $ 2,559,191 $ 15,427 $ 2,574,618 Held-to-maturity investment securities 522,270 — 510,474 — 510,474 Loans, net 5,150,388 — 10,403 5,218,121 5,228,524 Mortgage servicing rights 9,950 — — 14,480 14,480 Derivative assets 57,377 — 909 — 909 Financial liabilities HEI consolidated Deposit liabilities 423,976 — 442,361 — 442,361 Short-term borrowings—other than bank 53,998 — 53,998 — 53,998 Other bank borrowings 88,305 — 88,304 — 88,304 Long-term debt, net—other than bank 2,321,937 — 2,624,130 — 2,624,130 Derivative liabilities 57,000 11 5,271 — 5,282 Hawaiian Electric consolidated Long-term debt, net 1,676,402 — 1,955,710 — 1,955,710 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 and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis were as follows: December 31 2021 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 $ — $ 2,437,923 $ — $ — $ 1,849,559 $ — U.S. Treasury and federal agency obligations — 90,090 — — 62,322 — Corporate bonds — 31,178 — — 31,351 — Mortgage revenue bonds — — 15,427 — — 27,185 $ — $ 2,559,191 $ 15,427 $ — $ 1,943,232 $ 27,185 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 638 $ — $ — $ 4,536 $ — Interest rate swap (Other segment) 2 — 271 — — — — $ — $ 909 $ — $ — $ 4,536 $ — Derivative liabilities Forward commitments (bank segment) 1 $ 11 $ — $ — $ 500 $ — $ — Interest rate swap (Other segment) 2 — 5,271 — — 4,530 — $ 11 $ 5,271 $ — $ 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 Level 3 assets and liabilities measured at fair value on a recurring basis | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (in thousands) 2021 2020 Mortgage revenue bonds Balance, January 1 $ 27,185 $ 28,597 Principal payments received (11,758) (1,641) Purchases — 229 Unrealized gain (loss) included in other comprehensive income — — Balance, December 31 $ 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 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: December 31 2021 2020 (dollars in thousands) Unpaid principal balance $ 1,481,899 $ 1,450,312 Weighted average note rate 3.38 % 3.68 % Weighted average discount rate 9.25 % 9.25 % Weighted average prepayment speed 9.77 % 17.70 % 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 (dollars in thousands) Fair value Valuation technique Significant unobservable input Range Weighted 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. |
Summary of significant accoun_4
Summary of significant accounting policies - General, Cash, and PPE (Details) $ in Thousands | Feb. 02, 2018MWhMW | Nov. 24, 2017MW | Sep. 30, 2020MW | Dec. 31, 2021USD ($)MWhbranchMW | Dec. 31, 2020USD ($) | Dec. 31, 2019 |
Significant Accounting Policies [Line Items] | ||||||
Number of branches | 42 | |||||
Restricted cash | $ | $ 5,900 | $ 17,600 | ||||
Oahu | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of branches | 29 | |||||
Maui | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of branches | 6 | |||||
Kauai | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of branches | 2 | |||||
Hawaii | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of branches | 4 | |||||
Molokai | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of branches | 1 | |||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||
Significant Accounting Policies [Line Items] | ||||||
Composite annual depreciation rate | 3.20% | 3.20% | 3.20% | |||
Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful life under production plant (in years) | 16 years | |||||
Estimated useful life under transmission and distribution plant (in years) | 10 years | |||||
Estimated useful life under general plant (in years) | 5 years | |||||
Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful life under production plant (in years) | 51 years | |||||
Estimated useful life under transmission and distribution plant (in years) | 79 years | |||||
Estimated useful life under general plant (in years) | 50 years | |||||
Hamakua Energy | ||||||
Significant Accounting Policies [Line Items] | ||||||
Power produced by power plants (in megawatts) | MW | 60 | 60 | ||||
Mauo, LLC | ||||||
Significant Accounting Policies [Line Items] | ||||||
Power produced by power plants (in megawatts) | MW | 8.6 | 8.6 | ||||
Power storage capacity (in megawatt hours) | MWh | 42.3 | 42.3 | ||||
American Savings Bank (ASB) | ||||||
Significant Accounting Policies [Line Items] | ||||||
Reserve requirement | $ | $ 0 | |||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||
Significant Accounting Policies [Line Items] | ||||||
Restricted cash | $ | $ 3,089 | $ 15,966 | ||||
Ka‘ie‘ie Waho Company, LLC | ||||||
Significant Accounting Policies [Line Items] | ||||||
Photovoltaic system power amount (in megawatts) | MW | 6 |
Summary of significant accoun_5
Summary of significant accounting policies - Earnings Per Share (HEI only) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Antidilutive securities outstanding (in shares) | 0 | 0 | 0 |
Summary of significant accoun_6
Summary of significant accounting policies - Accounts Receivable and Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Goodwill and other intangibles | |||
Goodwill | $ 82,190,000 | $ 82,190,000 | |
Valuation, Income Approach | Measurement Input, Terminal Value | |||
Goodwill and other intangibles | |||
Goodwill impairment, measurement input | 0.75 | ||
Valuation, Publicly Traded Company Method | |||
Goodwill and other intangibles | |||
Goodwill impairment, measurement input | 0.20 | ||
Valuation, Sale Transaction Method | |||
Goodwill and other intangibles | |||
Goodwill impairment, measurement input | 0.05 | ||
American Savings Bank (ASB) | |||
Loans modified in a troubled debt restructuring | |||
Number of consecutive months of repayment required for loans to be removed from nonaccrual status | 6 months | ||
Goodwill and other intangibles | |||
Goodwill | $ 82,190,000 | 82,190,000 | |
Goodwill impairment | 0 | 0 | $ 0 |
Low-income housing investments | 111,000,000 | 83,400,000 | |
Commitments to fund affordable housing investments | $ 62,800,000 | 41,000,000 | |
American Savings Bank (ASB) | Measurement Band A | |||
Goodwill and other intangibles | |||
Risks inherent in servicing assets and servicing liabilities band percent for risk categorization | 0.50% | ||
American Savings Bank (ASB) | Measurement Band B | |||
Goodwill and other intangibles | |||
Risks inherent in servicing assets and servicing liabilities band percent for risk categorization | 1.00% | ||
American Savings Bank (ASB) | Loans receivable | |||
Nonperforming loans | |||
Period for classification as delinquent | 90 days | ||
American Savings Bank (ASB) | Mortgage receivable | |||
Nonperforming loans | |||
Period for classification as delinquent | 180 days | ||
American Savings Bank (ASB) | Consumer | |||
Nonperforming loans | |||
Period for write-off | 120 days | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Accounts Receivable | |||
Allowance for customer accounts receivable, accrued unbilled revenues and other accounts receivable | $ 26,100,000 | $ 17,800,000 | |
Electric utility revenues | |||
Weighted average AFUDC rate | 7.10% | 7.10% | 7.40% |
Summary of significant accoun_7
Summary of significant accounting policies - Summary of Income Tax Expense Related to Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amounts in income taxes related to low-income housing tax credit investments | |||
Net benefit to income tax expense | $ (62,807) | $ (40,910) | $ (51,637) |
American Savings Bank (ASB) | |||
Amounts in income taxes related to low-income housing tax credit investments | |||
Net benefit to income tax expense | (29,325) | (11,688) | (23,061) |
American Savings Bank (ASB) | Variable Interest Entity, Not Primary Beneficiary | |||
Amounts in income taxes related to low-income housing tax credit investments | |||
Amortization recognized in the provision for income taxes | (10,300) | (9,600) | (7,900) |
Tax credits and other tax benefits recognized in the provision for income taxes | 13,900 | 13,700 | 11,900 |
Net benefit to income tax expense | $ 3,600 | $ 4,100 | $ 4,000 |
Segment financial information_2
Segment financial information (Details) $ in Thousands | Feb. 02, 2018MWhMW | Nov. 24, 2017MW | Sep. 30, 2020aMW | Dec. 31, 2021USD ($)MWhMW | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Segment financial information | ||||||
Revenues | $ 2,850,379 | $ 2,579,775 | $ 2,873,948 | |||
Depreciation and amortization | 278,702 | 290,778 | 278,113 | |||
Interest expense, net | 99,403 | 99,808 | 109,339 | |||
Income (loss) before income taxes | 310,863 | 240,624 | 271,409 | |||
Income taxes (benefit) | 62,807 | 40,910 | 51,637 | |||
Net income (loss) | 248,056 | 199,714 | 219,772 | |||
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | |||
Net income for common stock | 246,166 | 197,824 | 217,882 | |||
Capital expenditures | 314,524 | 383,895 | 457,520 | |||
Assets | 15,822,637 | 15,004,007 | 13,745,251 | |||
Electric utility | ||||||
Segment financial information | ||||||
Revenues | 2,539,636 | 2,265,320 | 2,545,942 | |||
Depreciation and amortization | 251,206 | 256,479 | 245,362 | |||
Interest expense, net | 72,447 | 67,794 | 70,842 | |||
Income (loss) before income taxes | 223,785 | 211,753 | 197,140 | |||
Income taxes (benefit) | 44,148 | 40,418 | 38,305 | |||
Net income (loss) | 179,637 | 171,335 | 158,835 | |||
Preferred stock dividends of subsidiaries | 1,995 | 1,995 | 1,995 | |||
Net income for common stock | 177,642 | 169,340 | 156,840 | |||
Capital expenditures | 292,000 | 350,864 | 419,898 | |||
Assets | 6,491,625 | 6,457,373 | 6,388,682 | |||
Bank | ||||||
Segment financial information | ||||||
Revenues | 306,398 | 313,511 | 327,917 | |||
Depreciation and amortization | 21,124 | 29,349 | 28,675 | |||
Interest expense, net | 5,040 | 11,114 | 18,440 | |||
Income (loss) before income taxes | 130,559 | 69,271 | 112,034 | |||
Income taxes (benefit) | 29,325 | 11,688 | 23,061 | |||
Net income (loss) | 101,234 | 57,583 | 88,973 | |||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | |||
Net income for common stock | 101,234 | 57,583 | 88,973 | |||
Capital expenditures | 11,131 | 12,203 | 24,175 | |||
Assets | 9,181,603 | 8,396,533 | 7,233,017 | |||
Other | ||||||
Segment financial information | ||||||
Revenues | 4,345 | 944 | 89 | |||
Depreciation and amortization | 6,372 | 4,950 | 4,076 | |||
Interest expense, net | 21,916 | 20,900 | 20,057 | |||
Income (loss) before income taxes | (43,481) | (40,400) | (37,765) | |||
Income taxes (benefit) | (10,666) | (11,196) | (9,729) | |||
Net income (loss) | (32,815) | (29,204) | (28,036) | |||
Preferred stock dividends of subsidiaries | (105) | (105) | (105) | |||
Net income for common stock | (32,710) | (29,099) | (27,931) | |||
Capital expenditures | 11,393 | 20,828 | 13,447 | |||
Assets | 149,409 | 150,101 | 123,552 | |||
Operating Segments | ||||||
Segment financial information | ||||||
Revenues | 2,850,379 | 2,579,775 | 2,873,948 | |||
Operating Segments | Electric utility | ||||||
Segment financial information | ||||||
Revenues | 2,539,589 | 2,265,281 | 2,545,865 | |||
Operating Segments | Bank | ||||||
Segment financial information | ||||||
Revenues | 306,398 | 313,511 | 327,917 | |||
Operating Segments | Other | ||||||
Segment financial information | ||||||
Revenues | 4,392 | 983 | 166 | |||
Intersegment eliminations | ||||||
Segment financial information | ||||||
Revenues | 0 | 0 | 0 | |||
Intersegment eliminations | Electric utility | ||||||
Segment financial information | ||||||
Revenues | 47 | 39 | 77 | |||
Intersegment eliminations | Bank | ||||||
Segment financial information | ||||||
Revenues | 0 | 0 | 0 | |||
Intersegment eliminations | Other | ||||||
Segment financial information | ||||||
Revenues | $ (47) | $ (39) | $ (77) | |||
Hamakua Energy | ||||||
Segment financial information | ||||||
Power produced by power plants (in megawatts) | MW | 60 | 60 | ||||
Mauo, LLC | ||||||
Segment financial information | ||||||
Power produced by power plants (in megawatts) | MW | 8.6 | 8.6 | ||||
Power storage capacity (in megawatt hours) | MWh | 42.3 | 42.3 | ||||
Power purchase agreement term | 15 years | |||||
Power purchase agreement extension term | 5 years | |||||
Ka‘ie‘ie Waho Company, LLC | ||||||
Segment financial information | ||||||
Photovoltaic system power amount (in megawatts) | MW | 6 | |||||
Area of land (in acres) | a | 20 |
Electric utility segment - Regu
Electric utility segment - Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Regulatory assets | ||
Regulatory assets | $ 565,543 | $ 766,708 |
Regulatory liabilities | ||
Regulatory liabilities | 996,768 | 959,786 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Regulatory assets | ||
Regulatory assets | 565,543 | 766,708 |
Regulatory liabilities | ||
Regulatory liabilities | 996,768 | 959,786 |
Hawaiian Electric Company, Inc. and Subsidiaries | Cost of removal in excess of salvage value | ||
Regulatory liabilities | ||
Regulatory liabilities | 562,514 | 541,730 |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes | ||
Regulatory liabilities | ||
Regulatory liabilities | 337,304 | 360,426 |
Hawaiian Electric Company, Inc. and Subsidiaries | Decoupling revenue balancing account and RAM | ||
Regulatory liabilities | ||
Regulatory liabilities | 251 | 1,957 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans | ||
Regulatory liabilities | ||
Regulatory liabilities | 51,734 | 29,759 |
Hawaiian Electric Company, Inc. and Subsidiaries | Solar tax credits | ||
Regulatory liabilities | ||
Regulatory liabilities | 27,123 | 8,096 |
Hawaiian Electric Company, Inc. and Subsidiaries | Other | ||
Regulatory liabilities | ||
Regulatory liabilities | $ 17,842 | 17,818 |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Cost of removal in excess of salvage value | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Income taxes | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Decoupling revenue balancing account and RAM | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Solar tax credits | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Other | ||
Regulatory liabilities | ||
Remaining amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | Cost of removal in excess of salvage value | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 79 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | Income taxes | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 55 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | Decoupling revenue balancing account and RAM | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 2 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | Solar tax credits | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 20 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | Other | ||
Regulatory liabilities | ||
Remaining amortization or recovery periods | 4 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Current assets | ||
Regulatory assets | ||
Regulatory assets | $ 66,664 | 30,435 |
Hawaiian Electric Company, Inc. and Subsidiaries | Long-term assets | ||
Regulatory assets | ||
Regulatory assets | 498,879 | 736,273 |
Hawaiian Electric Company, Inc. and Subsidiaries | Current liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | 29,760 | 37,301 |
Hawaiian Electric Company, Inc. and Subsidiaries | Long-term liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | 967,008 | 922,485 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans (balance primarily varies with plans’ funded statuses) | ||
Regulatory assets | ||
Regulatory assets | 351,070 | 592,644 |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes | ||
Regulatory assets | ||
Regulatory assets | $ 88,087 | 96,171 |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes | Minimum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes | Maximum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 55 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Decoupling revenue balancing account and RAM | ||
Regulatory assets | ||
Regulatory assets | $ 31,607 | 10,432 |
Hawaiian Electric Company, Inc. and Subsidiaries | Decoupling revenue balancing account and RAM | Minimum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Decoupling revenue balancing account and RAM | Maximum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 2 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Unamortized expense and premiums on retired debt and equity issuances | ||
Regulatory assets | ||
Regulatory assets | $ 7,300 | 8,654 |
Hawaiian Electric Company, Inc. and Subsidiaries | Unamortized expense and premiums on retired debt and equity issuances | Minimum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 1 year | |
Remaining amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Unamortized expense and premiums on retired debt and equity issuances | Maximum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 18 years | |
Remaining amortization or recovery periods | 18 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Vacation earned, but not yet taken | ||
Regulatory assets | ||
Regulatory assets | $ 14,255 | 15,665 |
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | COVID-19 related costs (to be determined by PUC) | ||
Regulatory assets | ||
Regulatory assets | $ 27,839 | 18,032 |
Hawaiian Electric Company, Inc. and Subsidiaries | Other | ||
Regulatory assets | ||
Regulatory assets | $ 45,385 | $ 25,110 |
Hawaiian Electric Company, Inc. and Subsidiaries | Other | Minimum | ||
Regulatory assets | ||
Remaining amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Other | Maximum | ||
Regulatory assets | ||
Remaining amortization or recovery periods | 38 years |
Electric utility segment - Majo
Electric utility segment - Major Customers (Details) - Hawaiian Electric Company, Inc. and Subsidiaries - Operating revenues - Customer concentration - Various federal government agencies - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Major customers | |||
Operating revenues percentage | 11.00% | 11.00% | 11.00% |
Operating revenues amount | $ 267 | $ 249 | $ 281 |
Electric utility segment - Cumu
Electric utility segment - Cumulative Preferred Stock (Details) | Dec. 31, 2021$ / shares |
Series C, D, E, H, J and K Preferred Stock | Hawaiian Electric | |
Class of Stock [Line Items] | |
Voluntary liquidation price (in dollars per share) | $ 20 |
Redemption price (in dollars per share) | 21 |
Series I Preferred Stock | Hawaiian Electric | |
Class of Stock [Line Items] | |
Voluntary liquidation price (in dollars per share) | 20 |
Redemption price (in dollars per share) | 20 |
Series G Preferred Stock | Hawaii Electric Light Company, Inc. (HELCO) | |
Class of Stock [Line Items] | |
Voluntary liquidation price (in dollars per share) | 100 |
Redemption price (in dollars per share) | 100 |
Series H Preferred Stock | Maui Electric Company, Limited (MECO) | |
Class of Stock [Line Items] | |
Voluntary liquidation price (in dollars per share) | 100 |
Redemption price (in dollars per share) | $ 100 |
Electric utility segment - Rela
Electric utility segment - Related-Party Transactions (Details) - Hawaiian Electric (parent only) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Related Party Transaction [Line Items] | |||
Amount charged to subsidiaries for general management and administrative services | $ 5,200,000 | $ 5,600,000 | $ 6,000,000 |
Short-term borrowings due to related party | 0 | 0 | |
Hawaii Electric Light | Hamakua Energy | |||
Related Party Transaction [Line Items] | |||
Amount charged to subsidiaries for general management and administrative services | $ 54,000,000 | $ 50,000,000 | $ 68,000,000 |
Electric utility segment - Unco
Electric utility segment - Unconsolidated Variable Interest Entities (Details) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2021MW | Mar. 31, 2021MW | Dec. 31, 2021entityagreement | |
Variable Interest Entity [Line Items] | |||
Number of consolidation VIEs | entity | 3 | ||
Puna Geothermal Venture Power Purchase Agreement | |||
Variable Interest Entity [Line Items] | |||
Firm capacity volume | MW | 23.9 | 13 | |
Subsidiaries | |||
Variable Interest Entity [Line Items] | |||
Number of power purchase agreements (PPAs) (in agreements) | agreement | 5 |
Electric utility segment - Powe
Electric utility segment - Power Purchase Agreements (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2021 | Jul. 31, 2018MW | May 31, 2018MW | Jun. 30, 2015MW | May 31, 2012MW | Mar. 31, 1988MW | Jun. 30, 2021MW | Mar. 31, 2021MW | Dec. 31, 2021USD ($)agreementMW | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 1988MW | |
Puna Geothermal Venture Power Purchase Agreement | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Firm capacity volume | MW | 23.9 | 13 | ||||||||||
Kalaeloa | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Extension period | 10 years | |||||||||||
AES Hawaii | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Purchase commitment, period | 30 years | |||||||||||
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 Company, Inc. and Subsidiaries | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Purchased power | $ 670,494 | $ 568,749 | $ 633,256 | |||||||||
Number of power purchase agreements (PPAs) (in agreements) | agreement | 5 | |||||||||||
Power purchase capacity excluding agreements with smaller IPPs (in megawatts) | MW | 540.4 | |||||||||||
Expected fixed capacity charges, year one | $ 76,000 | |||||||||||
Expected fixed capacity charges, year two | 34,000 | |||||||||||
Expected fixed capacity charges, year three | 34,000 | |||||||||||
Expected fixed capacity charges, year four | 34,000 | |||||||||||
Expected fixed capacity charges, year five | 34,000 | |||||||||||
Expected fixed capacity charges, after year five through fifteen years | 161,000 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | AES Hawaii | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Purchase commitment, minimum power volume required to be purchased | MW | 180 | |||||||||||
Purchase commitment, arbitration, additional capacity requirement | MW | 9 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Hu Honua Bioenergy | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Purchase commitment, minimum power volume required to be purchased | MW | 21.5 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Kalaeloa | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Purchased power | 204,000 | 149,000 | 214,000 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | AES Hawaii | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Purchased power | 130,000 | 133,000 | 139,000 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | HPOWER | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Purchased power | 70,000 | 70,000 | 76,000 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Hamakua Energy | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Purchased power | 29,000 | 50,000 | 68,000 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Puna Geothermal Venture | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Purchased power | 53,000 | 1,000 | 0 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Wind IPPs | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Purchased power | 124,000 | 105,000 | 95,000 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Solar IPPs | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Purchased power | 50,000 | 57,000 | 36,000 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Other IPPs | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Purchased power | $ 10,000 | $ 4,000 | $ 5,000 | |||||||||
PGV Facility | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Power purchase capacity excluding agreements with smaller IPPs (in megawatts) | MW | 34.6 | |||||||||||
Hawaiian Electric | Kalaeloa | ||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||||
Purchase capacity amounts | MW | 208 |
Electric utility segment - Fuel
Electric utility segment - Fuels Barging Contract (Details) - Sause Bros., Inc. $ in Millions | Aug. 23, 2021USD ($) |
Long-term Purchase Commitment [Line Items] | |
Purchase commitment, period | 5 years |
Annual base rent amount | $ 6.2 |
Electric utility segment - Util
Electric utility segment - Utility Projects (Details) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2019USD ($)MW | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 10, 2019USD ($) | Oct. 31, 2018USD ($) | |
Federal | |||||
Regulatory Projects and Legal Obligations [Line Items] | |||||
Tax credit deferral period | 25 years | ||||
State | |||||
Regulatory Projects and Legal Obligations [Line Items] | |||||
Tax credit deferral period | 10 years | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Regulatory Projects and Legal Obligations [Line Items] | |||||
Regulatory liabilities | $ 29,760,000 | $ 37,301,000 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | ERP/EAM Implementation Project | |||||
Regulatory Projects and Legal Obligations [Line Items] | |||||
ERP/EAM project service period (in years) | 12 years | ||||
ERP/EAM required pass-through savings | $ 246,000,000 | ||||
ERP/EAM implementation project, expected future O&M expense reductions | $ 150,000,000 | ||||
ERP/EAM implementation project, future cost avoidance related to capital costs and tax costs | $ 96,000,000 | ||||
ERP/EAM regulatory liability for operation and maintenance expense reductions | $ 8,600,000 | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | West Loch PV Project | |||||
Regulatory Projects and Legal Obligations [Line Items] | |||||
Solar project, energy production (in megawatts) | MW | 20 | ||||
Solar project, project cap | $ 67,000,000 | ||||
Solar project, project cap for in-kind work | $ 4,700,000 | ||||
Solar project, cost incurred | 58,800,000 | ||||
Federal nonrefundable tax credits | 14,700,000 | ||||
State nonrefundable tax credits | $ 14,000,000 | ||||
Solar project, maximum energy costs (in dollars per KWH) | 9.56 | ||||
Regulatory liabilities | $ 700,000 | ||||
Hawaiian Electric | ERP/EAM Implementation Project | |||||
Regulatory Projects and Legal Obligations [Line Items] | |||||
ERP/EAM regulatory liability for operation and maintenance expense reductions | 5,400,000 | ||||
HELCO | ERP/EAM Implementation Project | |||||
Regulatory Projects and Legal Obligations [Line Items] | |||||
ERP/EAM regulatory liability for operation and maintenance expense reductions | 1,300,000 | ||||
Regulatory liability to be flowed through to customers | 1,600,000 | ||||
Maui Electric | ERP/EAM Implementation Project | |||||
Regulatory Projects and Legal Obligations [Line Items] | |||||
ERP/EAM regulatory liability for operation and maintenance expense reductions | $ 1,900,000 | ||||
Regulatory liability, amortization period | 5 years | ||||
Regulatory liability to be flowed through to customers | $ 2,300,000 |
Electric utility segment - Envi
Electric utility segment - Environmental Regulation (Details) $ in Millions | Dec. 31, 2021USD ($) |
Maui Electric Company, Limited (MECO) | |
Environmental regulation | |
Additional accrued investigation and estimated cleanup costs | $ 2.7 |
PCB Contamination | Hawaiian Electric | |
Environmental regulation | |
Accrual for environmental loss contingencies | $ 10.3 |
Electric utility segment - Asse
Electric utility segment - Asset Retirement Obligations (Details) - Hawaiian Electric Company, Inc. and Subsidiaries - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Regulatory Projects and Legal Obligations [Line Items] | ||
ARO, recognition impact on earnings | $ 0 | |
Changes in the asset retirement obligation liability | ||
Balance at the beginning of the period | 10,692,000 | $ 10,324,000 |
Accretion expense | 423,000 | 405,000 |
Liabilities incurred | 0 | 0 |
Liabilities settled | (5,000) | (37,000) |
Balance at the end of the period | $ 11,110,000 | $ 10,692,000 |
Electric utility segment - Re_2
Electric utility segment - Regulatory Proceedings (Details) | May 26, 2021USD ($) | Dec. 23, 2020USD ($) | Apr. 27, 2017USD ($) | Nov. 30, 2021agreement | Dec. 31, 2021USD ($)MWhcontractproject | Dec. 31, 2019USD ($)contract | Mar. 23, 2021mechanism | Feb. 16, 2021contract | Dec. 31, 2020agreement | Jul. 09, 2020agreement |
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||
Pilot process annual cap | $ 10,000,000 | |||||||||
PUC proposal period | 45 days | |||||||||
Advanced metering infrastructure utilization PIM, annual maximum reward | $ 2,000,000 | |||||||||
Advanced metering infrastructure utilization PIM, duration | 3 years | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||
Multi-year rate period | 5 years | |||||||||
Customer dividend, negative adjustment percentage | 0.0022% | |||||||||
Savings commitment liability, annual rate | $ 6,600,000 | |||||||||
ERP system benefits savings, liability | $ 3,900,000 | |||||||||
Actual return on equity, dead band percentage, above or below target | 3.00% | |||||||||
Authorized ROE | 9.50% | |||||||||
Actual earnings, above or below dead band | 1.50% | |||||||||
Percentage sharing between customers and utilities | 0.5 | |||||||||
Percentage sharing for any further difference | 9 | |||||||||
Threshold of capital expenditures in excess of customer contributions for qualification for major project interim recovery | $ 2,500,000 | |||||||||
Major project interim recovery requested amount | $ 21,800,000 | |||||||||
EPRM number of projects approved | contract | 2 | |||||||||
EPRM project costs | $ 41,000,000 | |||||||||
EPRM number of projects | project | 5 | |||||||||
EPRM total project costs | $ 264,000,000 | |||||||||
Target performance historical measurement period | 10 years | |||||||||
Service reliability, maximum penalty, percent of return on equity | 20.00% | |||||||||
Maximum penalty, pending adjusted amount | $ 6,800,000 | |||||||||
Service reliability, estimated penalties | $ 200,000 | |||||||||
Dead band percentage above or below target | 3.00% | |||||||||
Call center performance, maximum penalty, percent | 8.00% | |||||||||
Call center performance, maximum penalty, pending adjusted amount | $ 1,400,000 | |||||||||
Number of contracts which qualified for incentives | contract | 7 | |||||||||
Public utility, incentives accrued | $ 100,000 | $ 1,700,000 | ||||||||
Number of grid service purchase agreements | agreement | 2 | 2 | ||||||||
Number of additional power purchase contracts | contract | 1 | |||||||||
Number of power purchase contracts approved | agreement | 2 | |||||||||
Number of performance incentive mechanisms | mechanism | 2 | |||||||||
Interpolated statutory RPS goal rate, years 2021 and 2022 | MWh | 20 | |||||||||
Interpolated statutory RPS goal rate, year 2023 | MWh | 15 | |||||||||
Interpolated statutory RPS goal rate, remainder of MRP | MWh | 10 | |||||||||
RPS-A PIM estimated reward amount | $ 700,000 | |||||||||
Penalty rate for failure to meet RPS targets (megawatt per hour) | MWh | 20 | |||||||||
Grid services procurement PIM, maximum reward | $ 1,500,000 | |||||||||
Interconnection approval PIM, annual maximum reward | 3,000,000 | |||||||||
Interconnection approval PIM, annual maximum penalty | 900,000 | |||||||||
Interconnection approval PIM, accrued estimated rewards | 2,800,000 | |||||||||
Low-to-moderate income energy efficiency PIM, rewards cap | $ 2,000,000 | |||||||||
Low-to-moderate income energy efficiency PIM, duration | 3 years | |||||||||
Accrued estimated rewards, net of penalties | $ 3,400,000 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Schofield Generation Station | ||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||
Major project interim recovery requested amount | 17,600,000 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | West Loch PV Project | ||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||
Major project interim recovery requested amount | 3,300,000 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Grid Modernization Strategy Phase 1 Project | ||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||
Major project interim recovery requested amount | $ 900,000 | |||||||||
Hawaiian Electric | ||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||
Accrued estimated rewards, net of penalties | 2,600,000 | |||||||||
HELCO | ||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||
Accrued estimated rewards, net of penalties | 300,000 | |||||||||
Maui Electric | ||||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||||
Accrued estimated rewards, net of penalties | $ 500,000 |
Electric utility segment - Annu
Electric utility segment - Annual Decoupling Filings (Details) $ in Millions | 12 Months Ended |
Dec. 31, 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 MPIR/EPRM Revenue Adjustment | 0.1 |
Incremental MPIR/EPRM Revenue Adjustment | 10.4 |
Net incremental amount to be collected under the RBA rate tariffs | 96.2 |
Hawaiian Electric | |
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 MPIR/EPRM Revenue Adjustment | 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 MPIR/EPRM Revenue Adjustment | 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 MPIR/EPRM Revenue Adjustment | 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 Proceedings (Details) - USD ($) | Oct. 22, 2020 | Jul. 28, 2020 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Regulatory Projects and Legal Obligations [Line Items] | |||||
Bill credits | $ 2,000,000 | ||||
Regulatory assets | $ 565,543,000 | $ 565,543,000 | $ 766,708,000 | ||
International Brotherhood Of Electrical Workers, AFL-CIO, Local 1260 | |||||
Regulatory Projects and Legal Obligations [Line Items] | |||||
Collective bargaining agreement, general wage increase percentage | 3.00% | ||||
Collective bargaining agreement, general wage increase, contract term | 3 years | ||||
International Brotherhood Of Electrical Workers, AFL-CIO, Local 1260 | Workforce Subject to Collective Bargaining Arrangements Expiring within One Year | Unionized Employees Concentration Risk | |||||
Regulatory Projects and Legal Obligations [Line Items] | |||||
Operating revenues percentage | 47.00% | ||||
Hawaiian Electric | |||||
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, rate increase | 2.00% | ||||
Maximum exposure cap | $ 600,000 | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Regulatory Projects and Legal Obligations [Line Items] | |||||
Regulatory assets | 565,543,000 | $ 565,543,000 | $ 766,708,000 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | COVID-19 | |||||
Regulatory Projects and Legal Obligations [Line Items] | |||||
Bill credits | 2,000,000 | ||||
Regulatory assets | $ 27,800,000 | $ 27,800,000 |
Electric utility segment - Cons
Electric utility segment - Consolidating Statement of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Income Statements, Captions [Line Items] | |||
Revenues | $ 2,850,379 | $ 2,579,775 | $ 2,873,948 |
Expenses | |||
Total expenses | 2,464,313 | 2,268,282 | 2,525,927 |
Operating income | 386,066 | 311,493 | 348,021 |
Allowance for equity funds used during construction | 9,534 | 8,768 | 11,987 |
Retirement defined benefits credit (expense)—other than service costs | 5,848 | (3,210) | (2,806) |
Allowance for borrowed funds used during construction | 3,250 | 2,992 | 4,453 |
Income before income taxes | 310,863 | 240,624 | 271,409 |
Income taxes | 62,807 | 40,910 | 51,637 |
Net income (loss) | 248,056 | 199,714 | 219,772 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 |
Net income for common stock | 246,166 | 197,824 | 217,882 |
Hawaiian Electric (parent only) | |||
Expenses | |||
Total expenses | 24,934 | 21,870 | 20,335 |
Retirement defined benefits credit (expense)—other than service costs | 114 | (634) | (442) |
Income before income taxes | 235,584 | 186,565 | 208,075 |
Income taxes | (10,582) | (11,259) | (9,807) |
Net income (loss) | 246,166 | 197,824 | 217,882 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Condensed Income Statements, Captions [Line Items] | |||
Revenues | 2,539,636 | 2,265,320 | 2,545,942 |
Expenses | |||
Fuel oil | 644,349 | 515,274 | 720,709 |
Purchased power | 670,494 | 568,749 | 633,256 |
Other operation and maintenance | 475,412 | 474,192 | 481,737 |
Depreciation | 229,469 | 222,733 | 215,731 |
Taxes, other than income taxes | 240,354 | 215,822 | 240,131 |
Total expenses | 2,260,078 | 1,996,770 | 2,291,564 |
Operating income | 279,558 | 268,550 | 254,378 |
Allowance for equity funds used during construction | 9,534 | 8,768 | 11,987 |
Equity in earnings of subsidiaries | 0 | 0 | 0 |
Retirement defined benefits credit (expense)—other than service costs | 3,890 | (763) | (2,836) |
Interest expense and other charges, net | (72,447) | (67,794) | (70,842) |
Allowance for borrowed funds used during construction | 3,250 | 2,992 | 4,453 |
Income before income taxes | 223,785 | 211,753 | 197,140 |
Income taxes | 44,148 | 40,418 | 38,305 |
Net income (loss) | 179,637 | 171,335 | 158,835 |
Preferred stock dividends of subsidiaries | 915 | 915 | 915 |
Net income attributable to Hawaiian Electric | 178,722 | 170,420 | 157,920 |
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 |
Net income for common stock | 177,642 | 169,340 | 156,840 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaiian Electric (parent only) | |||
Condensed Income Statements, Captions [Line Items] | |||
Revenues | 1,793,372 | 1,608,305 | 1,803,698 |
Expenses | |||
Fuel oil | 442,818 | 354,087 | 494,728 |
Purchased power | 508,642 | 446,672 | 494,215 |
Other operation and maintenance | 313,009 | 311,781 | 319,771 |
Depreciation | 155,607 | 151,387 | 143,470 |
Taxes, other than income taxes | 170,604 | 154,191 | 170,979 |
Total expenses | 1,590,680 | 1,418,118 | 1,623,163 |
Operating income | 202,692 | 190,187 | 180,535 |
Allowance for equity funds used during construction | 7,734 | 7,335 | 9,955 |
Equity in earnings of subsidiaries | 45,353 | 47,504 | 43,167 |
Retirement defined benefits credit (expense)—other than service costs | 3,348 | (1,294) | (2,287) |
Interest expense and other charges, net | (51,680) | (48,775) | (51,199) |
Allowance for borrowed funds used during construction | 2,617 | 2,540 | 3,666 |
Income before income taxes | 210,064 | 197,497 | 183,837 |
Income taxes | 31,342 | 27,077 | 25,917 |
Net income (loss) | 178,722 | 170,420 | 157,920 |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 |
Net income attributable to Hawaiian Electric | 178,722 | 170,420 | 157,920 |
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 |
Net income for common stock | 177,642 | 169,340 | 156,840 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaii Electric Light | |||
Condensed Income Statements, Captions [Line Items] | |||
Revenues | 381,033 | 334,221 | 364,590 |
Expenses | |||
Fuel oil | 80,086 | 72,202 | 84,565 |
Purchased power | 108,997 | 73,120 | 90,989 |
Other operation and maintenance | 79,390 | 73,746 | 76,091 |
Depreciation | 40,201 | 39,041 | 41,812 |
Taxes, other than income taxes | 35,499 | 31,181 | 33,787 |
Total expenses | 344,173 | 289,290 | 327,244 |
Operating income | 36,860 | 44,931 | 37,346 |
Allowance for equity funds used during construction | 586 | 543 | 816 |
Equity in earnings of subsidiaries | 0 | 0 | 0 |
Retirement defined benefits credit (expense)—other than service costs | 670 | 672 | (422) |
Interest expense and other charges, net | (10,353) | (10,004) | (10,741) |
Allowance for borrowed funds used during construction | 197 | 160 | 342 |
Income before income taxes | 27,960 | 36,302 | 27,341 |
Income taxes | 6,246 | 8,275 | 5,990 |
Net income (loss) | 21,714 | 28,027 | 21,351 |
Preferred stock dividends of subsidiaries | 534 | 534 | 534 |
Net income attributable to Hawaiian Electric | 21,180 | 27,493 | 20,817 |
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 |
Net income for common stock | 21,180 | 27,493 | 20,817 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Maui Electric | |||
Condensed Income Statements, Captions [Line Items] | |||
Revenues | 365,256 | 323,430 | 378,202 |
Expenses | |||
Fuel oil | 121,445 | 88,985 | 141,416 |
Purchased power | 52,855 | 48,957 | 48,052 |
Other operation and maintenance | 83,013 | 88,665 | 85,875 |
Depreciation | 33,661 | 32,305 | 30,449 |
Taxes, other than income taxes | 34,251 | 30,450 | 35,365 |
Total expenses | 325,225 | 289,362 | 341,157 |
Operating income | 40,031 | 34,068 | 37,045 |
Allowance for equity funds used during construction | 1,214 | 890 | 1,216 |
Equity in earnings of subsidiaries | 0 | 0 | 0 |
Retirement defined benefits credit (expense)—other than service costs | (128) | (141) | (127) |
Interest expense and other charges, net | (10,439) | (9,651) | (9,450) |
Allowance for borrowed funds used during construction | 436 | 292 | 445 |
Income before income taxes | 31,114 | 25,458 | 29,129 |
Income taxes | 6,560 | 5,066 | 6,398 |
Net income (loss) | 24,554 | 20,392 | 22,731 |
Preferred stock dividends of subsidiaries | 381 | 381 | 381 |
Net income attributable to Hawaiian Electric | 24,173 | 20,011 | 22,350 |
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 |
Net income for common stock | 24,173 | 20,011 | 22,350 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Other subsidiaries | |||
Expenses | |||
Allowance for equity funds used during construction | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | Consolidating adjustments | |||
Condensed Income Statements, Captions [Line Items] | |||
Revenues | (25) | (636) | (548) |
Expenses | |||
Fuel oil | 0 | 0 | 0 |
Purchased power | 0 | 0 | 0 |
Other operation and maintenance | 0 | 0 | 0 |
Depreciation | 0 | 0 | 0 |
Taxes, other than income taxes | 0 | 0 | 0 |
Total expenses | 0 | 0 | 0 |
Operating income | (25) | (636) | (548) |
Allowance for equity funds used during construction | 0 | 0 | 0 |
Equity in earnings of subsidiaries | (45,353) | (47,504) | (43,167) |
Retirement defined benefits credit (expense)—other than service costs | 0 | 0 | 0 |
Interest expense and other charges, net | 25 | 636 | 548 |
Allowance for borrowed funds used during construction | 0 | 0 | 0 |
Income before income taxes | (45,353) | (47,504) | (43,167) |
Income taxes | 0 | 0 | 0 |
Net income (loss) | (45,353) | (47,504) | (43,167) |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 |
Net income attributable to Hawaiian Electric | (45,353) | (47,504) | (43,167) |
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 |
Net income for common stock | $ (45,353) | $ (47,504) | $ (43,167) |
Electric utility segment - Co_2
Electric utility segment - Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Statement of Income Captions [Line Items] | |||
Net income for common stock | $ 246,166 | $ 197,824 | $ 217,882 |
Retirement benefit plans: | |||
Net gains (losses) arising during the period, net of (taxes) benefits | 153,121 | (60,529) | 10,914 |
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 19,253 | 23,689 | 10,107 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | (171,345) | 39,860 | (16,177) |
Other comprehensive loss, net of tax benefits | (51,269) | 18,775 | 30,571 |
Comprehensive income | 194,897 | 216,599 | 248,453 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Condensed Statement of Income Captions [Line Items] | |||
Net income for common stock | 177,642 | 169,340 | 156,840 |
Retirement benefit plans: | |||
Net gains (losses) arising during the period, net of (taxes) benefits | 151,523 | (63,050) | 5,249 |
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 19,461 | 21,550 | 9,550 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | (171,345) | 39,860 | (16,177) |
Other comprehensive loss, net of tax benefits | (361) | (1,640) | (1,378) |
Comprehensive income | 177,281 | 167,700 | 155,462 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaiian Electric (parent only) | |||
Condensed Statement of Income Captions [Line Items] | |||
Net income for common stock | 177,642 | 169,340 | 156,840 |
Retirement benefit plans: | |||
Net gains (losses) arising during the period, net of (taxes) benefits | 151,523 | (63,050) | 5,249 |
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 19,461 | 21,550 | 9,550 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | (171,345) | 39,860 | (16,177) |
Other comprehensive loss, net of tax benefits | (361) | (1,640) | (1,378) |
Comprehensive income | 177,281 | 167,700 | 155,462 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaii Electric Light | |||
Condensed Statement of Income Captions [Line Items] | |||
Net income for common stock | 21,180 | 27,493 | 20,817 |
Retirement benefit plans: | |||
Net gains (losses) arising during the period, net of (taxes) benefits | 17,902 | (9,424) | 373 |
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 2,749 | 3,179 | 1,455 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | (20,585) | 6,025 | (1,840) |
Other comprehensive loss, net of tax benefits | 66 | (220) | (12) |
Comprehensive income | 21,246 | 27,273 | 20,805 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Maui Electric | |||
Condensed Statement of Income Captions [Line Items] | |||
Net income for common stock | 24,173 | 20,011 | 22,350 |
Retirement benefit plans: | |||
Net gains (losses) arising during the period, net of (taxes) benefits | 16,572 | (10,897) | (204) |
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 2,553 | 2,763 | 1,182 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | (18,898) | 8,000 | (1,152) |
Other comprehensive loss, net of tax benefits | 227 | (134) | (174) |
Comprehensive income | 24,400 | 19,877 | 22,176 |
Hawaiian Electric Company, Inc. and Subsidiaries | Consolidating adjustments | |||
Condensed Statement of Income Captions [Line Items] | |||
Net income for common stock | (45,353) | (47,504) | (43,167) |
Retirement benefit plans: | |||
Net gains (losses) arising during the period, net of (taxes) benefits | (34,474) | 20,321 | (169) |
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | (5,302) | (5,942) | (2,637) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | 39,483 | (14,025) | 2,992 |
Other comprehensive loss, net of tax benefits | (293) | 354 | 186 |
Comprehensive income | $ (45,646) | $ (47,150) | $ (42,981) |
Electric utility segment - Co_3
Electric utility segment - Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Utility property, plant and equipment | ||||
Total property, plant and equipment, net | $ 5,392,068 | $ 5,265,735 | ||
Current assets | ||||
Cash and cash equivalents | 305,551 | 341,421 | $ 196,813 | |
Restricted cash | 5,900 | 17,600 | ||
Other long-term assets | ||||
Operating lease right-of-use-assets | 122,416 | 153,069 | ||
Total assets | 15,822,637 | 15,004,007 | 13,745,251 | |
Capitalization | ||||
Common stock equity | 2,390,884 | 2,337,502 | 2,280,260 | $ 2,162,280 |
Cumulative preferred stock–not subject to mandatory redemption | 0 | 0 | ||
Current liabilities | ||||
Interest and dividends payable | 19,889 | 23,547 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 384,760 | 395,089 | ||
Total capitalization and liabilities | 15,822,637 | 15,004,007 | ||
Hawaiian Electric (parent only) | ||||
Utility property, plant and equipment | ||||
Total property, plant and equipment, net | 2,052 | 2,456 | ||
Other long-term assets | ||||
Total assets | 3,062,073 | 2,930,236 | ||
Capitalization | ||||
Common stock equity | 2,390,884 | 2,337,502 | ||
Cumulative preferred stock–not subject to mandatory redemption | 0 | 0 | ||
Current liabilities | ||||
Short-term borrowings from non-affiliate | 0 | 14,909 | ||
Deferred credits and other liabilities | ||||
Total capitalization and liabilities | 3,062,073 | 2,930,236 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Utility property, plant and equipment | ||||
Land | 51,937 | 51,611 | ||
Plant and equipment | 7,735,983 | 7,509,343 | ||
Less accumulated depreciation | (2,940,517) | (2,819,079) | ||
Construction in progress | 204,569 | 188,342 | ||
Utility property, plant and equipment, net | 5,051,972 | 4,930,217 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 6,949 | 6,953 | ||
Total property, plant and equipment, net | 5,058,921 | 4,937,170 | ||
Investment in wholly-owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 52,169 | 47,360 | 11,022 | |
Restricted cash | 3,089 | 15,966 | ||
Advances to affiliates | 0 | 0 | ||
Customer accounts receivable, net | 186,859 | 147,832 | ||
Accrued unbilled revenues, net | 129,155 | 101,036 | ||
Other accounts receivable, net | 7,267 | 7,673 | ||
Fuel oil stock, at average cost | 104,078 | 58,238 | ||
Materials and supplies, at average cost | 71,877 | 67,344 | ||
Prepayments and other | 46,031 | 44,083 | ||
Regulatory assets | 66,664 | 30,435 | ||
Total current assets | 667,189 | 519,967 | ||
Other long-term assets | ||||
Operating lease right-of-use-assets | 101,470 | 127,654 | ||
Regulatory assets | 498,879 | 736,273 | ||
Other | 165,166 | 136,309 | ||
Total other long-term assets | 765,515 | 1,000,236 | ||
Total assets | 6,491,625 | 6,457,373 | ||
Capitalization | ||||
Common stock equity | 2,261,899 | 2,141,918 | 2,047,352 | 1,957,641 |
Cumulative preferred stock–not subject to mandatory redemption | 34,293 | 34,293 | ||
Long-term debt, net | 1,624,427 | 1,561,302 | ||
Total capitalization | 3,920,619 | 3,737,513 | ||
Current liabilities | ||||
Current portion of operating lease liabilities | 49,368 | 64,730 | ||
Current portion of long-term debt, net | 51,975 | 0 | ||
Short-term borrowings from non-affiliate | 0 | 49,979 | ||
Short-term borrowings-affiliate | 0 | 0 | ||
Accounts payable | 160,007 | 133,849 | ||
Interest and dividends payable | 17,325 | 20,350 | ||
Taxes accrued, including revenue taxes | 208,280 | 192,524 | ||
Regulatory liabilities | 29,760 | 37,301 | ||
Other | 71,569 | 74,262 | ||
Total current liabilities | 588,284 | 572,995 | ||
Deferred credits and other liabilities | ||||
Operating lease liabilities | 65,780 | 69,494 | ||
Deferred income taxes | 408,634 | 397,798 | ||
Regulatory liabilities | 967,008 | 922,485 | ||
Unamortized tax credits | 103,945 | 111,915 | ||
Defined benefit pension and other postretirement benefit plans liability | 321,780 | 530,532 | ||
Other | 115,575 | 114,641 | ||
Total deferred credits and other liabilities | 1,982,722 | 2,146,865 | ||
Total capitalization and liabilities | 6,491,625 | 6,457,373 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaiian Electric (parent only) | ||||
Utility property, plant and equipment | ||||
Land | 42,737 | 42,411 | ||
Plant and equipment | 5,097,033 | 4,960,470 | ||
Less accumulated depreciation | (1,757,096) | (1,677,256) | ||
Construction in progress | 159,854 | 143,616 | ||
Utility property, plant and equipment, net | 3,542,528 | 3,469,241 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 5,302 | 5,306 | ||
Total property, plant and equipment, net | 3,547,830 | 3,474,547 | ||
Investment in wholly-owned subsidiaries, at equity | 676,237 | 626,890 | ||
Current assets | ||||
Cash and cash equivalents | 23,344 | 42,205 | 2,239 | |
Restricted cash | 3,089 | 15,966 | ||
Advances to affiliates | 1,000 | 26,700 | ||
Customer accounts receivable, net | 135,949 | 102,736 | ||
Accrued unbilled revenues, net | 92,469 | 73,628 | ||
Other accounts receivable, net | 18,624 | 17,984 | ||
Fuel oil stock, at average cost | 71,184 | 38,777 | ||
Materials and supplies, at average cost | 42,006 | 38,786 | ||
Prepayments and other | 32,140 | 34,306 | ||
Regulatory assets | 58,695 | 22,095 | ||
Total current assets | 478,500 | 413,183 | ||
Other long-term assets | ||||
Operating lease right-of-use-assets | 78,710 | 125,858 | ||
Regulatory assets | 337,903 | 513,192 | ||
Other | 130,546 | 98,307 | ||
Total other long-term assets | 547,159 | 737,357 | ||
Total assets | 5,249,726 | 5,251,977 | ||
Capitalization | ||||
Common stock equity | 2,261,899 | 2,141,918 | 2,047,352 | 1,957,641 |
Cumulative preferred stock–not subject to mandatory redemption | 22,293 | 22,293 | ||
Long-term debt, net | 1,136,620 | 1,116,426 | ||
Total capitalization | 3,420,812 | 3,280,637 | ||
Current liabilities | ||||
Current portion of operating lease liabilities | 45,955 | 64,599 | ||
Current portion of long-term debt, net | 39,981 | |||
Short-term borrowings from non-affiliate | 49,979 | |||
Short-term borrowings-affiliate | 0 | 0 | ||
Accounts payable | 111,024 | 97,102 | ||
Interest and dividends payable | 12,442 | 14,480 | ||
Taxes accrued, including revenue taxes | 143,723 | 135,018 | ||
Regulatory liabilities | 22,240 | 20,224 | ||
Other | 56,752 | 57,926 | ||
Total current liabilities | 432,117 | 439,328 | ||
Deferred credits and other liabilities | ||||
Operating lease liabilities | 46,426 | 67,824 | ||
Deferred income taxes | 291,027 | 282,685 | ||
Regulatory liabilities | 695,152 | 656,270 | ||
Unamortized tax credits | 76,201 | 82,563 | ||
Defined benefit pension and other postretirement benefit plans liability | 220,480 | 373,112 | ||
Other | 67,511 | 69,558 | ||
Total deferred credits and other liabilities | 1,396,797 | 1,532,012 | ||
Total capitalization and liabilities | 5,249,726 | 5,251,977 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaii Electric Light | ||||
Utility property, plant and equipment | ||||
Land | 5,606 | 5,606 | ||
Plant and equipment | 1,390,361 | 1,352,885 | ||
Less accumulated depreciation | (619,991) | (597,606) | ||
Construction in progress | 17,129 | 13,043 | ||
Utility property, plant and equipment, net | 793,105 | 773,928 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 115 | 115 | ||
Total property, plant and equipment, net | 793,220 | 774,043 | ||
Investment in wholly-owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 5,326 | 3,046 | 6,885 | |
Restricted cash | 0 | 0 | ||
Advances to affiliates | 0 | 0 | ||
Customer accounts receivable, net | 28,469 | 23,989 | ||
Accrued unbilled revenues, net | 19,529 | 13,631 | ||
Other accounts receivable, net | 3,347 | 3,028 | ||
Fuel oil stock, at average cost | 12,814 | 8,471 | ||
Materials and supplies, at average cost | 9,727 | 9,896 | ||
Prepayments and other | 6,052 | 5,197 | ||
Regulatory assets | 3,051 | 1,954 | ||
Total current assets | 88,315 | 69,212 | ||
Other long-term assets | ||||
Operating lease right-of-use-assets | 22,442 | 1,443 | ||
Regulatory assets | 81,645 | 114,461 | ||
Other | 17,124 | 17,992 | ||
Total other long-term assets | 121,211 | 133,896 | ||
Total assets | 1,002,746 | 977,151 | ||
Capitalization | ||||
Common stock equity | 332,900 | 317,451 | 298,998 | 295,874 |
Cumulative preferred stock–not subject to mandatory redemption | 7,000 | 7,000 | ||
Long-term debt, net | 234,390 | 216,447 | ||
Total capitalization | 574,290 | 540,898 | ||
Current liabilities | ||||
Current portion of operating lease liabilities | 3,378 | 98 | ||
Current portion of long-term debt, net | 11,994 | |||
Short-term borrowings from non-affiliate | 0 | |||
Short-term borrowings-affiliate | 1,000 | 18,800 | ||
Accounts payable | 26,139 | 19,570 | ||
Interest and dividends payable | 2,617 | 3,138 | ||
Taxes accrued, including revenue taxes | 33,153 | 29,869 | ||
Regulatory liabilities | 3,247 | 8,785 | ||
Other | 14,158 | 13,851 | ||
Total current liabilities | 95,686 | 94,111 | ||
Deferred credits and other liabilities | ||||
Operating lease liabilities | 19,063 | 1,344 | ||
Deferred income taxes | 53,298 | 54,108 | ||
Regulatory liabilities | 179,267 | 173,938 | ||
Unamortized tax credits | 14,212 | 15,363 | ||
Defined benefit pension and other postretirement benefit plans liability | 48,900 | 77,679 | ||
Other | 18,030 | 19,710 | ||
Total deferred credits and other liabilities | 332,770 | 342,142 | ||
Total capitalization and liabilities | 1,002,746 | 977,151 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Maui Electric | ||||
Utility property, plant and equipment | ||||
Land | 3,594 | 3,594 | ||
Plant and equipment | 1,248,589 | 1,195,988 | ||
Less accumulated depreciation | (563,430) | (544,217) | ||
Construction in progress | 27,586 | 31,683 | ||
Utility property, plant and equipment, net | 716,339 | 687,048 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 1,532 | 1,532 | ||
Total property, plant and equipment, net | 717,871 | 688,580 | ||
Investment in wholly-owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 23,422 | 2,032 | 1,797 | |
Restricted cash | 0 | 0 | ||
Advances to affiliates | 0 | 0 | ||
Customer accounts receivable, net | 22,441 | 21,107 | ||
Accrued unbilled revenues, net | 17,157 | 13,777 | ||
Other accounts receivable, net | 3,031 | 2,856 | ||
Fuel oil stock, at average cost | 20,080 | 10,990 | ||
Materials and supplies, at average cost | 20,144 | 18,662 | ||
Prepayments and other | 7,114 | 4,580 | ||
Regulatory assets | 4,918 | 6,386 | ||
Total current assets | 118,307 | 80,390 | ||
Other long-term assets | ||||
Operating lease right-of-use-assets | 318 | 353 | ||
Regulatory assets | 79,331 | 108,620 | ||
Other | 18,510 | 20,010 | ||
Total other long-term assets | 98,159 | 128,983 | ||
Total assets | 934,337 | 897,953 | ||
Capitalization | ||||
Common stock equity | 343,260 | 309,363 | 292,870 | 280,863 |
Cumulative preferred stock–not subject to mandatory redemption | 5,000 | 5,000 | ||
Long-term debt, net | 253,417 | 228,429 | ||
Total capitalization | 601,677 | 542,792 | ||
Current liabilities | ||||
Current portion of operating lease liabilities | 35 | 33 | ||
Current portion of long-term debt, net | 0 | |||
Short-term borrowings from non-affiliate | 0 | |||
Short-term borrowings-affiliate | 0 | 7,900 | ||
Accounts payable | 22,844 | 17,177 | ||
Interest and dividends payable | 2,269 | 2,790 | ||
Taxes accrued, including revenue taxes | 30,679 | 27,637 | ||
Regulatory liabilities | 4,273 | 8,292 | ||
Other | 18,540 | 18,621 | ||
Total current liabilities | 78,640 | 82,450 | ||
Deferred credits and other liabilities | ||||
Operating lease liabilities | 291 | 326 | ||
Deferred income taxes | 64,309 | 61,005 | ||
Regulatory liabilities | 92,589 | 92,277 | ||
Unamortized tax credits | 13,532 | 13,989 | ||
Defined benefit pension and other postretirement benefit plans liability | 53,257 | 79,741 | ||
Other | 30,042 | 25,373 | ||
Total deferred credits and other liabilities | 254,020 | 272,711 | ||
Total capitalization and liabilities | 934,337 | 897,953 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Other subsidiaries | ||||
Utility property, plant and equipment | ||||
Land | 0 | 0 | ||
Plant and equipment | 0 | 0 | ||
Less accumulated depreciation | 0 | 0 | ||
Construction in progress | 0 | 0 | ||
Utility property, plant and equipment, net | 0 | 0 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 0 | 0 | ||
Total property, plant and equipment, net | 0 | 0 | ||
Investment in wholly-owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 77 | 77 | 101 | |
Restricted cash | 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 | 101 | 101 |
Cumulative preferred stock–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 | ||
Current portion of long-term debt, net | 0 | |||
Short-term borrowings from non-affiliate | 0 | |||
Short-term borrowings-affiliate | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Interest and dividends payable | 0 | 0 | ||
Taxes accrued, including revenue taxes | 0 | 0 | ||
Regulatory liabilities | 0 | 0 | ||
Other | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
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 capitalization and liabilities | 77 | 77 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Consolidating adjustments | ||||
Utility property, plant and equipment | ||||
Land | 0 | 0 | ||
Plant and equipment | 0 | 0 | ||
Less accumulated depreciation | 0 | 0 | ||
Construction in progress | 0 | 0 | ||
Utility property, plant and equipment, net | 0 | 0 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 0 | 0 | ||
Total property, plant and equipment, net | 0 | 0 | ||
Investment in wholly-owned subsidiaries, at equity | (676,237) | (626,890) | ||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | |
Restricted cash | 0 | 0 | ||
Advances to affiliates | (1,000) | (26,700) | ||
Customer accounts receivable, net | 0 | 0 | ||
Accrued unbilled revenues, net | 0 | 0 | ||
Other accounts receivable, net | (17,735) | (16,195) | ||
Fuel oil stock, at average cost | 0 | 0 | ||
Materials and supplies, at average cost | 0 | 0 | ||
Prepayments and other | 725 | 0 | ||
Regulatory assets | 0 | 0 | ||
Total current assets | (18,010) | (42,895) | ||
Other long-term assets | ||||
Operating lease right-of-use-assets | 0 | 0 | ||
Regulatory assets | 0 | 0 | ||
Other | (1,014) | 0 | ||
Total other long-term assets | (1,014) | 0 | ||
Total assets | (695,261) | (669,785) | ||
Capitalization | ||||
Common stock equity | (676,237) | (626,891) | $ (591,969) | $ (576,838) |
Cumulative preferred stock–not subject to mandatory redemption | 0 | 0 | ||
Long-term debt, net | 0 | 0 | ||
Total capitalization | (676,237) | (626,891) | ||
Current liabilities | ||||
Current portion of operating lease liabilities | 0 | 0 | ||
Current portion of long-term debt, net | 0 | |||
Short-term borrowings from non-affiliate | 0 | |||
Short-term borrowings-affiliate | (1,000) | (26,700) | ||
Accounts payable | 0 | 0 | ||
Interest and dividends payable | (3) | (58) | ||
Taxes accrued, including revenue taxes | 725 | 0 | ||
Regulatory liabilities | 0 | 0 | ||
Other | (17,881) | (16,136) | ||
Total current liabilities | (18,159) | (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 | (857) | 0 | ||
Other | (8) | 0 | ||
Total deferred credits and other liabilities | (865) | 0 | ||
Total capitalization and liabilities | $ (695,261) | $ (669,785) |
Electric utility segment - Co_4
Electric utility segment - Consolidating Statements of Changes in Common Stock Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (decrease) in stockholders' equity | |||
Beginning balance | $ 2,337,502 | $ 2,280,260 | $ 2,162,280 |
Net income for common stock | 246,166 | 197,824 | 217,882 |
Other comprehensive income (loss), net of taxes (benefits) | (51,269) | 18,775 | 30,571 |
Common stock dividends | (148,643) | (144,096) | (139,463) |
Ending balance | 2,390,884 | 2,337,502 | 2,280,260 |
Hawaiian Electric (parent only) | |||
Increase (decrease) in stockholders' equity | |||
Beginning balance | 2,337,502 | ||
Ending balance | 2,390,884 | 2,337,502 | |
Eliminations And Reconciling Items | |||
Increase (decrease) in stockholders' equity | |||
Dissolution of subsidiary | 24 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Increase (decrease) in stockholders' equity | |||
Beginning balance | 2,141,918 | 2,047,352 | 1,957,641 |
Net income for common stock | 177,642 | 169,340 | 156,840 |
Other comprehensive income (loss), net of taxes (benefits) | (361) | (1,640) | (1,378) |
Issuance of common stock, net of expenses | 54,400 | 34,000 | 35,501 |
Common stock dividends | (111,700) | (107,134) | (101,252) |
Dissolution of subsidiary | 0 | ||
Ending balance | 2,261,899 | 2,141,918 | 2,047,352 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaiian Electric (parent only) | |||
Increase (decrease) in stockholders' equity | |||
Beginning balance | 2,141,918 | 2,047,352 | 1,957,641 |
Net income for common stock | 177,642 | 169,340 | 156,840 |
Other comprehensive income (loss), net of taxes (benefits) | (361) | (1,640) | (1,378) |
Issuance of common stock, net of expenses | 54,400 | 34,000 | 35,501 |
Common stock dividends | (111,700) | (107,134) | (101,252) |
Ending balance | 2,261,899 | 2,141,918 | 2,047,352 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaii Electric Light | |||
Increase (decrease) in stockholders' equity | |||
Beginning balance | 317,451 | 298,998 | 295,874 |
Net income for common stock | 21,180 | 27,493 | 20,817 |
Other comprehensive income (loss), net of taxes (benefits) | 66 | (220) | (12) |
Issuance of common stock, net of expenses | 8,803 | 7,500 | (1) |
Common stock dividends | (14,600) | (16,320) | (17,680) |
Ending balance | 332,900 | 317,451 | 298,998 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Maui Electric | |||
Increase (decrease) in stockholders' equity | |||
Beginning balance | 309,363 | 292,870 | 280,863 |
Net income for common stock | 24,173 | 20,011 | 22,350 |
Other comprehensive income (loss), net of taxes (benefits) | 227 | (134) | (174) |
Issuance of common stock, net of expenses | 24,597 | 11,000 | 4,899 |
Common stock dividends | (15,100) | (14,384) | (15,068) |
Ending balance | 343,260 | 309,363 | 292,870 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Other subsidiaries | |||
Increase (decrease) in stockholders' equity | |||
Beginning balance | 77 | 101 | 101 |
Dissolution of subsidiary | (24) | ||
Ending balance | 77 | 77 | 101 |
Hawaiian Electric Company, Inc. and Subsidiaries | Consolidating adjustments | |||
Increase (decrease) in stockholders' equity | |||
Beginning balance | (626,891) | (591,969) | (576,838) |
Net income for common stock | (45,353) | (47,504) | (43,167) |
Other comprehensive income (loss), net of taxes (benefits) | (293) | 354 | 186 |
Issuance of common stock, net of expenses | (33,400) | (18,500) | (4,898) |
Common stock dividends | 29,700 | 30,704 | 32,748 |
Ending balance | $ (676,237) | $ (626,891) | $ (591,969) |
Electric utility segment - Co_5
Electric utility segment - Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income (loss) | $ 248,056 | $ 199,714 | $ 219,772 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 246,158 | 238,114 | 229,858 |
Other amortization | 32,544 | 52,664 | 48,255 |
Deferred income taxes | (5,398) | (1,706) | (15,085) |
Allowance for equity funds used during construction | (9,534) | (8,768) | (11,987) |
Other | (7,060) | 1,366 | 18,568 |
Changes in assets and liabilities | |||
Increase in fuel oil stock | (45,819) | 34,202 | (11,493) |
Decrease (increase) in regulatory assets | (13,874) | 1,007 | 71,262 |
Increase (decrease) in regulatory liabilities | 15,358 | (16,562) | 1,953 |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 41,331 | (35,610) | (27,538) |
Decrease in defined benefit pension and other postretirement benefit plans liability | (6,660) | (2,029) | (4,482) |
Net cash provided by operating activities | 375,673 | 429,407 | 512,470 |
Cash flows from investing activities | |||
Capital expenditures | (314,524) | (383,895) | (457,520) |
Other | 27 | 3,412 | 13,291 |
Net cash used in investing activities | (1,179,592) | (1,413,648) | (541,709) |
Cash flows from financing activities | |||
Common stock dividends | (148,643) | (144,096) | (139,463) |
Proceeds from issuance of long-term debt | 285,886 | 415,997 | 289,349 |
Repayment of long-term debt | (82,262) | (178,969) | (287,285) |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (10,493) | (71,219) | 86,718 |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | (1,365) | (25,440) | 5,070 |
Proceeds from issuance of short-term debt | 0 | 165,000 | 75,000 |
Repayment of short-term debt | (65,000) | (150,000) | (50,000) |
Other | (3,080) | (3,203) | (1,836) |
Net cash used in financing activities | 756,402 | 1,115,535 | 87,716 |
Net increase (decrease) in cash and equivalents | (47,517) | 131,294 | 58,477 |
Cash, cash equivalents and restricted cash, January 1 | 358,979 | 227,685 | 169,208 |
Cash, cash equivalents and restricted cash, December 31 | 311,462 | 358,979 | 227,685 |
Less: Restricted cash | (5,911) | (17,558) | (30,872) |
Cash and cash equivalents | 305,551 | 341,421 | 196,813 |
Hawaiian Electric (parent only) | |||
Cash flows from operating activities | |||
Net income (loss) | 246,166 | 197,824 | 217,882 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 414 | 485 | 570 |
Changes in assets and liabilities | |||
Net cash provided by operating activities | 154,151 | 134,363 | 131,120 |
Cash flows from investing activities | |||
Capital expenditures | (10) | (20) | (47) |
Other | 180 | 2,435 | (1,001) |
Net cash used in investing activities | (76,062) | (17,530) | (41,170) |
Cash flows from financing activities | |||
Common stock dividends | (148,643) | (144,096) | (139,463) |
Proceeds from issuance of long-term debt | 150,000 | 50,000 | 0 |
Repayment of long-term debt | (50,000) | 0 | 0 |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (10,493) | (32,232) | 47,731 |
Proceeds from issuance of short-term debt | 0 | 65,000 | 0 |
Repayment of short-term debt | (15,000) | (50,000) | 0 |
Other | (1,767) | (459) | (10) |
Net cash used in financing activities | (77,909) | (117,487) | (92,739) |
Net increase (decrease) in cash and equivalents | 180 | (654) | (2,789) |
Cash, cash equivalents and restricted cash, January 1 | 299 | 953 | 3,742 |
Cash, cash equivalents and restricted cash, December 31 | 479 | 299 | 953 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Cash flows from operating activities | |||
Net income (loss) | 179,637 | 171,335 | 158,835 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Equity in earnings of subsidiaries | 0 | 0 | (37) |
Common stock dividends received from subsidiaries | 0 | 0 | 35 |
Depreciation of property, plant and equipment | 229,469 | 222,733 | 215,731 |
Other amortization | 21,737 | 33,746 | 29,631 |
Deferred income taxes | (3,829) | 3,151 | (16,284) |
State refundable credit | (10,582) | (9,961) | (8,369) |
Bad debt expense | 2,183 | 2,115 | 2,150 |
Allowance for equity funds used during construction | (9,534) | (8,768) | (11,987) |
Bill credits | 2,000 | 0 | 0 |
Accrued environmental reserve | 0 | 6,556 | 406 |
Other | 1,350 | 2,610 | 27,459 |
Changes in assets and liabilities | |||
Decrease (increase) in accounts receivable | (50,090) | (7,286) | 18,822 |
Decrease (increase) in accrued unbilled revenues | (27,464) | 15,285 | 4,495 |
Increase in fuel oil stock | (45,840) | 33,699 | (12,002) |
Decrease (increase) in materials and supplies | (4,533) | (6,642) | (5,498) |
Decrease (increase) in regulatory assets | (13,874) | 1,007 | 71,262 |
Increase (decrease) in regulatory liabilities | 15,358 | (16,562) | 1,953 |
Increase in accounts payable | 17,671 | (33,129) | (2,051) |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 26,930 | (37,180) | (28,523) |
Decrease in defined benefit pension and other postretirement benefit plans liability | (5,154) | (4,306) | (4,448) |
Changes in other assets and liabilities | (52,302) | (31,852) | (17,624) |
Net cash provided by operating activities | 273,133 | 336,551 | 423,956 |
Cash flows from investing activities | |||
Capital expenditures | (292,000) | (350,864) | (419,898) |
Advances from (to) affiliates | 0 | 0 | 0 |
Other | 6,035 | 6,070 | 11,374 |
Net cash used in investing activities | (285,965) | (344,794) | (408,524) |
Cash flows from financing activities | |||
Common stock dividends | (111,700) | (107,134) | (101,252) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,995) | (1,995) | (1,995) |
Proceeds from issuance of common stock | 54,400 | 34,000 | 35,500 |
Proceeds from issuance of long-term debt | 115,000 | 255,000 | 280,000 |
Repayment of long-term debt | 0 | (109,000) | (283,546) |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | (38,987) | 38,987 |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | (38,987) | ||
Proceeds from issuance of short-term debt | 0 | 100,000 | 75,000 |
Repayment of short-term debt | (50,000) | (100,000) | (50,000) |
Other | (941) | (2,209) | (2,109) |
Net cash used in financing activities | 4,764 | 29,675 | (9,415) |
Net increase (decrease) in cash and equivalents | (8,068) | 21,432 | 6,017 |
Cash, cash equivalents and restricted cash, January 1 | 63,326 | 41,894 | 35,877 |
Cash, cash equivalents and restricted cash, December 31 | 55,258 | 63,326 | 41,894 |
Less: Restricted cash | (3,089) | (15,966) | (30,872) |
Cash and cash equivalents | 52,169 | 47,360 | 11,022 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaiian Electric (parent only) | |||
Cash flows from operating activities | |||
Net income (loss) | 178,722 | 170,420 | 157,920 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Equity in earnings of subsidiaries | (45,353) | (47,504) | (43,204) |
Common stock dividends received from subsidiaries | 29,700 | 30,704 | 32,783 |
Depreciation of property, plant and equipment | 155,607 | 151,387 | 143,470 |
Other amortization | 16,688 | 24,511 | 23,351 |
Deferred income taxes | (3,191) | 2,130 | (13,547) |
State refundable credit | (7,120) | (6,668) | (6,245) |
Bad debt expense | 1,159 | 1,042 | 1,236 |
Allowance for equity funds used during construction | (7,734) | (7,335) | (9,955) |
Bill credits | 1,400 | ||
Accrued environmental reserve | 6,556 | 406 | |
Other | 366 | 1,201 | 27,575 |
Changes in assets and liabilities | |||
Decrease (increase) in accounts receivable | (41,727) | (8,093) | 24,150 |
Decrease (increase) in accrued unbilled revenues | (18,345) | 8,832 | 4,902 |
Increase in fuel oil stock | (32,407) | 30,226 | (14,741) |
Decrease (increase) in materials and supplies | (3,220) | (3,910) | (4,585) |
Decrease (increase) in regulatory assets | (15,422) | 8,526 | 55,494 |
Increase (decrease) in regulatory liabilities | 16,269 | (5,490) | 102 |
Increase in accounts payable | 9,828 | (26,093) | 4,687 |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 21,217 | (25,757) | (24,900) |
Decrease in defined benefit pension and other postretirement benefit plans liability | (3,480) | (3,092) | (3,033) |
Changes in other assets and liabilities | (36,733) | (21,124) | (15,747) |
Net cash provided by operating activities | 216,224 | 280,469 | 340,119 |
Cash flows from investing activities | |||
Capital expenditures | (194,984) | (229,127) | (311,538) |
Advances from (to) affiliates | 25,700 | 1,000 | (27,700) |
Other | (29,596) | (14,340) | 5,241 |
Net cash used in investing activities | (198,880) | (242,467) | (333,997) |
Cash flows from financing activities | |||
Common stock dividends | (111,700) | (107,134) | (101,252) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080) | (1,080) | (1,080) |
Proceeds from issuance of common stock | 54,400 | 34,000 | 35,500 |
Proceeds from issuance of long-term debt | 60,000 | 205,000 | 190,000 |
Repayment of long-term debt | (95,000) | (183,546) | |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | 46,987 | |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | (46,987) | ||
Proceeds from issuance of short-term debt | 100,000 | 75,000 | |
Repayment of short-term debt | (50,000) | (100,000) | (50,000) |
Other | (702) | (1,618) | (1,475) |
Net cash used in financing activities | (49,082) | (12,819) | 10,134 |
Net increase (decrease) in cash and equivalents | (31,738) | 25,183 | 16,256 |
Cash, cash equivalents and restricted cash, January 1 | 58,171 | 32,988 | 16,732 |
Cash, cash equivalents and restricted cash, December 31 | 26,433 | 58,171 | 32,988 |
Less: Restricted cash | (3,089) | (15,966) | (30,749) |
Cash and cash equivalents | 23,344 | 42,205 | 2,239 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Hawaii Electric Light | |||
Cash flows from operating activities | |||
Net income (loss) | 21,714 | 28,027 | 21,351 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Equity in earnings of subsidiaries | 0 | 0 | 0 |
Common stock dividends received from subsidiaries | 0 | 0 | 0 |
Depreciation of property, plant and equipment | 40,201 | 39,041 | 41,812 |
Other amortization | 3,532 | 5,090 | 4,810 |
Deferred income taxes | (1,955) | (463) | (2,383) |
State refundable credit | (1,672) | (1,593) | (559) |
Bad debt expense | 509 | 620 | 470 |
Allowance for equity funds used during construction | (586) | (543) | (816) |
Bill credits | 300 | ||
Accrued environmental reserve | 0 | 0 | |
Other | (41) | 1,322 | (61) |
Changes in assets and liabilities | |||
Decrease (increase) in accounts receivable | (6,832) | (3,349) | 2,858 |
Decrease (increase) in accrued unbilled revenues | (5,816) | 3,327 | (22) |
Increase in fuel oil stock | (4,343) | 430 | 2,126 |
Decrease (increase) in materials and supplies | 169 | (1,583) | (1,158) |
Decrease (increase) in regulatory assets | 24 | (2,908) | 9,218 |
Increase (decrease) in regulatory liabilities | (1,031) | (4,489) | (1,558) |
Increase in accounts payable | 4,723 | (1,819) | (3,160) |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 3,861 | (5,483) | (893) |
Decrease in defined benefit pension and other postretirement benefit plans liability | (950) | (643) | (762) |
Changes in other assets and liabilities | (5,833) | (8,864) | (6,152) |
Net cash provided by operating activities | 45,974 | 46,120 | 65,121 |
Cash flows from investing activities | |||
Capital expenditures | (50,516) | (64,346) | (49,811) |
Advances from (to) affiliates | 0 | 8,000 | (8,000) |
Other | 1,072 | 1,032 | 297 |
Net cash used in investing activities | (49,444) | (55,314) | (57,514) |
Cash flows from financing activities | |||
Common stock dividends | (14,600) | (16,320) | (17,680) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (534) | (534) | (534) |
Proceeds from issuance of common stock | 8,803 | 7,500 | 0 |
Proceeds from issuance of long-term debt | 30,000 | 10,000 | 72,500 |
Repayment of long-term debt | (14,000) | (70,000) | |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (17,800) | 0 | |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 18,800 | ||
Proceeds from issuance of short-term debt | 0 | 0 | |
Repayment of short-term debt | 0 | 0 | 0 |
Other | (119) | (214) | (508) |
Net cash used in financing activities | 5,750 | 5,232 | (16,222) |
Net increase (decrease) in cash and equivalents | 2,280 | (3,962) | (8,615) |
Cash, cash equivalents and restricted cash, January 1 | 3,046 | 7,008 | 15,623 |
Cash, cash equivalents and restricted cash, December 31 | 5,326 | 3,046 | 7,008 |
Less: Restricted cash | 0 | 0 | (123) |
Cash and cash equivalents | 5,326 | 3,046 | 6,885 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Maui Electric | |||
Cash flows from operating activities | |||
Net income (loss) | 24,554 | 20,392 | 22,731 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Equity in earnings of subsidiaries | 0 | 0 | 0 |
Common stock dividends received from subsidiaries | 0 | 0 | 0 |
Depreciation of property, plant and equipment | 33,661 | 32,305 | 30,449 |
Other amortization | 1,517 | 4,145 | 1,470 |
Deferred income taxes | 1,317 | 1,484 | (354) |
State refundable credit | (1,790) | (1,700) | (1,565) |
Bad debt expense | 515 | 453 | 444 |
Allowance for equity funds used during construction | (1,214) | (890) | (1,216) |
Bill credits | 300 | ||
Accrued environmental reserve | 0 | 0 | |
Other | 1,025 | 87 | (55) |
Changes in assets and liabilities | |||
Decrease (increase) in accounts receivable | (3,071) | (1,343) | 3,029 |
Decrease (increase) in accrued unbilled revenues | (3,303) | 3,126 | (385) |
Increase in fuel oil stock | (9,090) | 3,043 | 613 |
Decrease (increase) in materials and supplies | (1,482) | (1,149) | 245 |
Decrease (increase) in regulatory assets | 1,524 | (4,611) | 6,550 |
Increase (decrease) in regulatory liabilities | 120 | (6,583) | 3,409 |
Increase in accounts payable | 3,120 | (5,217) | (3,578) |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 1,938 | (5,998) | (3,097) |
Decrease in defined benefit pension and other postretirement benefit plans liability | (724) | (571) | (653) |
Changes in other assets and liabilities | (8,196) | 3,635 | (6,940) |
Net cash provided by operating activities | 40,721 | 40,608 | 51,097 |
Cash flows from investing activities | |||
Capital expenditures | (46,500) | (57,391) | (58,549) |
Advances from (to) affiliates | 0 | 0 | 0 |
Other | 1,073 | 960 | 1,303 |
Net cash used in investing activities | (45,427) | (56,431) | (57,246) |
Cash flows from financing activities | |||
Common stock dividends | (15,100) | (14,384) | (15,068) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (381) | (381) | (381) |
Proceeds from issuance of common stock | 24,597 | 11,000 | 4,900 |
Proceeds from issuance of long-term debt | 25,000 | 40,000 | 17,500 |
Repayment of long-term debt | 0 | (30,000) | |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (7,900) | 27,700 | |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | (19,800) | ||
Proceeds from issuance of short-term debt | 0 | 0 | |
Repayment of short-term debt | 0 | 0 | 0 |
Other | (120) | (377) | (126) |
Net cash used in financing activities | 26,096 | 16,058 | 4,525 |
Net increase (decrease) in cash and equivalents | 21,390 | 235 | (1,624) |
Cash, cash equivalents and restricted cash, January 1 | 2,032 | 1,797 | 3,421 |
Cash, cash equivalents and restricted cash, December 31 | 23,422 | 2,032 | 1,797 |
Less: Restricted cash | 0 | 0 | 0 |
Cash and cash equivalents | 23,422 | 2,032 | 1,797 |
Hawaiian Electric Company, Inc. and Subsidiaries | Reportable Legal Entities | Other subsidiaries | |||
Cash flows from operating activities | |||
Net income (loss) | 0 | 0 | 0 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Equity in earnings of subsidiaries | 0 | 0 | 0 |
Common stock dividends received from subsidiaries | 0 | 0 | 0 |
Depreciation of property, plant and equipment | 0 | 0 | 0 |
Other amortization | 0 | 0 | 0 |
Deferred income taxes | 0 | 0 | 0 |
State refundable credit | 0 | 0 | 0 |
Bad debt expense | 0 | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 | 0 |
Bill credits | 0 | ||
Accrued environmental reserve | 0 | 0 | |
Other | 0 | 0 | 0 |
Changes in assets and liabilities | |||
Decrease (increase) in accounts receivable | 0 | 0 | 0 |
Decrease (increase) in accrued unbilled revenues | 0 | 0 | 0 |
Increase in fuel oil stock | 0 | 0 | 0 |
Decrease (increase) in materials and supplies | 0 | 0 | 0 |
Decrease (increase) in regulatory assets | 0 | 0 | 0 |
Increase (decrease) in regulatory liabilities | |||
Increase in accounts payable | 0 | 0 | 0 |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 0 | 0 | 0 |
Decrease in defined benefit pension and other postretirement benefit plans liability | 0 | 0 | 0 |
Changes in other assets and liabilities | 0 | 0 | 0 |
Net cash provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | 0 |
Advances from (to) affiliates | 0 | 0 | 0 |
Other | (24) | 0 | |
Net cash used in investing activities | 0 | (24) | 0 |
Cash flows from financing activities | |||
Common stock dividends | 0 | 0 | 0 |
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 | 0 |
Proceeds from issuance of long-term debt | 0 | 0 | 0 |
Repayment of long-term debt | 0 | 0 | |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | 0 | |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 0 | ||
Proceeds from issuance of short-term debt | 0 | 0 | |
Repayment of short-term debt | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Net cash used in financing activities | 0 | 0 | 0 |
Net increase (decrease) in cash and equivalents | 0 | (24) | 0 |
Cash, cash equivalents and restricted cash, January 1 | 77 | 101 | 101 |
Cash, cash equivalents and restricted cash, December 31 | 77 | 77 | 101 |
Less: Restricted cash | 0 | 0 | 0 |
Cash and cash equivalents | 77 | 77 | 101 |
Hawaiian Electric Company, Inc. and Subsidiaries | Consolidating adjustments | |||
Cash flows from operating activities | |||
Net income (loss) | (45,353) | (47,504) | (43,167) |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Equity in earnings of subsidiaries | 45,353 | 47,504 | 43,167 |
Common stock dividends received from subsidiaries | (29,700) | (30,704) | (32,748) |
Depreciation of property, plant and equipment | 0 | 0 | 0 |
Other amortization | 0 | 0 | 0 |
Deferred income taxes | 0 | 0 | 0 |
State refundable credit | 0 | 0 | 0 |
Bad debt expense | 0 | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 | 0 |
Bill credits | 0 | ||
Accrued environmental reserve | 0 | 0 | |
Other | 0 | 0 | 0 |
Changes in assets and liabilities | |||
Decrease (increase) in accounts receivable | 1,540 | 5,499 | (11,215) |
Decrease (increase) in accrued unbilled revenues | 0 | 0 | 0 |
Increase in fuel oil stock | 0 | 0 | 0 |
Decrease (increase) in materials and supplies | 0 | 0 | 0 |
Decrease (increase) in regulatory assets | 0 | 0 | 0 |
Increase (decrease) in regulatory liabilities | |||
Increase in accounts payable | 0 | 0 | 0 |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (86) | 58 | 367 |
Decrease in defined benefit pension and other postretirement benefit plans liability | 0 | 0 | 0 |
Changes in other assets and liabilities | (1,540) | (5,499) | 11,215 |
Net cash provided by operating activities | (29,786) | (30,646) | (32,381) |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | 0 |
Advances from (to) affiliates | (25,700) | (9,000) | 35,700 |
Other | 33,486 | 18,442 | 4,533 |
Net cash used in investing activities | 7,786 | 9,442 | 40,233 |
Cash flows from financing activities | |||
Common stock dividends | 29,700 | 30,704 | 32,748 |
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | 0 |
Proceeds from issuance of common stock | (33,400) | (18,500) | (4,900) |
Proceeds from issuance of long-term debt | 0 | 0 | 0 |
Repayment of long-term debt | 0 | 0 | |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 25,700 | (35,700) | |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 9,000 | ||
Proceeds from issuance of short-term debt | 0 | 0 | |
Repayment of short-term debt | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Net cash used in financing activities | 22,000 | 21,204 | (7,852) |
Net increase (decrease) in cash and equivalents | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash, January 1 | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash, December 31 | 0 | 0 | 0 |
Less: Restricted cash | 0 | 0 | 0 |
Cash and cash equivalents | $ 0 | $ 0 | $ 0 |
Bank segment (HEI only) - State
Bank segment (HEI only) - Statements of Income Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest expense | |||
Interest on deposit liabilities | $ 4,981 | $ 10,654 | $ 16,830 |
Total interest expense | 99,403 | 99,808 | 109,339 |
Provision for credit losses | (26,425) | 49,811 | 23,480 |
Noninterest income | |||
Noninterest income | 2,521,425 | 2,269,451 | |
Noninterest expense | |||
Income before income taxes | 310,863 | 240,624 | 271,409 |
Income taxes | 62,807 | 40,910 | 51,637 |
Net income (loss) | 248,056 | 199,714 | 219,772 |
Current period other comprehensive income (loss) and reclassifications, net of taxes | (51,269) | 18,775 | 30,571 |
Comprehensive income | 194,897 | 216,599 | 248,453 |
COVID-19 related costs | 600 | 5,100 | |
Incremental compensation expense | 2,500 | ||
Enhanced cleaning and sanitation costs | 2,000 | ||
American Savings Bank (ASB) | |||
Interest and dividend income | |||
Interest and fees on loans | 198,802 | 214,134 | 233,632 |
Interest and dividends on investment securities | 43,464 | 30,529 | 32,922 |
Total interest and dividend income | 242,266 | 244,663 | 266,554 |
Interest expense | |||
Interest on deposit liabilities | 4,981 | 10,654 | 16,830 |
Interest on other borrowings | 59 | 460 | 1,610 |
Total interest expense | 5,040 | 11,114 | 18,440 |
Net interest income | 237,226 | 233,549 | 248,114 |
Provision for credit losses | (25,825) | 50,811 | 23,480 |
Net interest income after provision for credit losses | 263,051 | 182,738 | 224,634 |
Noninterest income | |||
Gain on sale of real estate | 0 | 0 | 10,762 |
Gain on sale of investment securities, net | 528 | 9,275 | 653 |
Total noninterest income | 64,660 | 78,123 | 72,778 |
Noninterest expense | |||
Compensation and employee benefits | 113,970 | 104,443 | 103,009 |
Occupancy | 20,584 | 21,573 | 21,272 |
Data processing | 17,634 | 14,769 | 15,306 |
Services | 10,327 | 11,121 | 10,239 |
Equipment | 9,510 | 9,001 | 8,760 |
Office supplies, printing and postage | 4,239 | 4,623 | 5,512 |
Marketing | 3,870 | 3,435 | 4,490 |
FDIC insurance | 3,235 | 2,342 | 1,204 |
Other expense | 13,783 | 20,283 | 15,586 |
Total noninterest expense | 197,152 | 191,590 | 185,378 |
Income before income taxes | 130,559 | 69,271 | 112,034 |
Income taxes | 29,325 | 11,688 | 23,061 |
Net income (loss) | 101,234 | 57,583 | 88,973 |
Current period other comprehensive income (loss) and reclassifications, net of taxes | (52,728) | 23,608 | 29,406 |
Comprehensive income | 48,506 | 81,191 | 118,379 |
American Savings Bank (ASB) | Fees from other financial services | |||
Noninterest income | |||
Noninterest income | 21,225 | 16,447 | 19,275 |
American Savings Bank (ASB) | Fee income on deposit liabilities | |||
Noninterest income | |||
Noninterest income | 16,663 | 16,059 | 20,877 |
American Savings Bank (ASB) | Fee income on other financial products | |||
Noninterest income | |||
Noninterest income | 8,770 | 6,381 | 6,507 |
American Savings Bank (ASB) | Bank-owned life insurance | |||
Noninterest income | |||
Noninterest income | 7,318 | 6,483 | 7,687 |
American Savings Bank (ASB) | Mortgage banking income | |||
Noninterest income | |||
Noninterest income | 9,305 | 23,734 | 4,943 |
American Savings Bank (ASB) | Other income, net | |||
Noninterest income | |||
Noninterest income | $ 851 | $ (256) | $ 2,074 |
Bank segment (HEI only) - Recon
Bank segment (HEI only) - Reconciliation of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Gain on sale of investment securities, net | $ 528 | $ 9,275 | $ 653 |
Total revenues | 2,850,379 | 2,579,775 | 2,873,948 |
Total interest expense | 99,403 | 99,808 | 109,339 |
Provision for credit losses | (26,425) | 49,811 | 23,480 |
Less: Retirement defined benefits expense (credit)—other than service costs | (5,848) | 3,210 | 2,806 |
Total expenses | 2,464,313 | 2,268,282 | 2,525,927 |
Operating income | 386,066 | 311,493 | 348,021 |
Add back: Retirement defined benefits expense (credit)—other than service costs | (5,848) | 3,210 | 2,806 |
Add back: Gain on sale of investment securities, net | 528 | 9,275 | 653 |
Income before income taxes | 310,863 | 240,624 | 271,409 |
American Savings Bank (ASB) | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Interest and dividend income | 242,266 | 244,663 | 266,554 |
Noninterest income | 64,660 | 78,123 | 72,778 |
Less: Gain on sale of real estate | 0 | 0 | 10,762 |
Gain on sale of investment securities, net | 528 | 9,275 | 653 |
Total revenues | 306,398 | 313,511 | 327,917 |
Total interest expense | 5,040 | 11,114 | 18,440 |
Provision for credit losses | (25,825) | 50,811 | 23,480 |
Noninterest expense | 197,152 | 191,590 | 185,378 |
Less: Retirement defined benefits expense (credit)—other than service costs | (1,828) | 1,813 | (472) |
Gain on sale of properties | 0 | 0 | 10,762 |
Total expenses | 178,195 | 251,702 | 217,008 |
Operating income | 128,203 | 61,809 | 110,909 |
Add back: Retirement defined benefits expense (credit)—other than service costs | (1,828) | 1,813 | (472) |
Add back: Gain on sale of investment securities, net | 528 | 9,275 | 653 |
Income before income taxes | $ 130,559 | $ 69,271 | $ 112,034 |
Bank segment (HEI only) - Balan
Bank segment (HEI only) - Balance Sheets Data (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||||
Cash and cash equivalents | $ 305,551 | $ 341,421 | $ 196,813 | |
Investment securities | ||||
Available-for-sale investment securities | 2,574,618 | 1,970,417 | ||
Held-to-maturity investment securities, at amortized cost | 522,270 | 226,947 | ||
Held-to-maturity investment securities | 510,474 | |||
Stock in Federal Home Loan Bank, at cost | 10,000 | 8,680 | ||
Loans held for investment | 5,120,664 | |||
Allowance for credit losses | (71,130) | (101,201) | (53,355) | $ (52,119) |
Total loans, net | 5,139,984 | 5,232,642 | ||
Loans held for sale, at lower of cost or fair value | 10,404 | 28,275 | ||
Other | 747,469 | 629,149 | ||
Goodwill | 82,190 | 82,190 | ||
Total assets | 15,822,637 | 15,004,007 | 13,745,251 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Other | 669,215 | 618,438 | ||
Total liabilities | 13,397,460 | 12,632,212 | ||
Commitments and contingencies | ||||
Retained earnings | 757,921 | 660,398 | ||
Accumulated other comprehensive income (loss), net of taxes | ||||
Net unrealized gains (losses) on securities | (32,037) | 19,986 | ||
Retirement benefit plans | (16,858) | (17,887) | ||
Accumulated other comprehensive income (loss), net of taxes | (52,533) | (1,264) | ||
Total shareholders’ equity | 2,390,884 | 2,337,502 | $ 2,280,260 | $ 2,162,280 |
Total capitalization and liabilities | 15,822,637 | 15,004,007 | ||
Other assets | ||||
Premises and equipment, net | 5,392,068 | 5,265,735 | ||
Total other assets | 747,469 | 629,149 | ||
Other liabilities | ||||
Total other liabilities | 669,215 | 618,438 | ||
American Savings Bank (ASB) | ||||
Assets | ||||
Cash and due from banks | 100,051 | 178,422 | ||
Interest-bearing deposits | 151,189 | 114,304 | ||
Cash and cash equivalents | 251,240 | 292,726 | ||
Investment securities | ||||
Available-for-sale investment securities | 2,574,618 | 1,970,417 | ||
Held-to-maturity investment securities, at amortized cost | 522,270 | 226,947 | ||
Held-to-maturity investment securities | 510,474 | 229,963 | ||
Stock in Federal Home Loan Bank, at cost | 10,000 | 8,680 | ||
Loans held for investment | 5,211,114 | 5,333,843 | ||
Allowance for credit losses | (71,130) | (101,201) | ||
Total loans, net | 5,139,984 | 5,232,642 | ||
Loans held for sale, at lower of cost or fair value | 10,404 | 28,275 | ||
Other | 590,897 | 554,656 | ||
Goodwill | 82,190 | 82,190 | ||
Total assets | 9,181,603 | 8,396,533 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Deposit liabilities–noninterest-bearing | 2,976,632 | 2,598,500 | ||
Deposit liabilities–interest-bearing | 5,195,580 | 4,788,457 | ||
Other borrowings | 88,305 | 89,670 | ||
Other | 193,268 | 183,731 | ||
Total liabilities | 8,453,785 | 7,660,358 | ||
Commitments and contingencies | ||||
Common stock | 1 | 1 | ||
Premium on capital stock | 353,895 | 351,758 | ||
Retained earnings | 411,704 | 369,470 | ||
Accumulated other comprehensive income (loss), net of taxes | ||||
Net unrealized gains (losses) on securities | (32,037) | 19,986 | ||
Retirement benefit plans | (5,745) | (5,040) | ||
Accumulated other comprehensive income (loss), net of taxes | (37,782) | 14,946 | ||
Total shareholders’ equity | 727,818 | 736,175 | ||
Total capitalization and liabilities | 9,181,603 | 8,396,533 | ||
Other assets | ||||
Bank-owned life insurance | 177,566 | 163,265 | ||
Premises and equipment, net | 202,299 | 206,134 | ||
Accrued interest receivable | 20,854 | 24,616 | ||
Mortgage servicing rights | 9,950 | 10,020 | ||
Low-income housing investments | 110,989 | 83,435 | ||
Other | 69,239 | 67,186 | ||
Total other assets | 590,897 | 554,656 | ||
Other liabilities | ||||
Accrued expenses | 87,905 | 62,694 | ||
Federal and state income taxes payable | 0 | 6,582 | ||
Cashier’s checks | 33,675 | 38,011 | ||
Advance payments by borrowers | 9,994 | 10,207 | ||
Other | 61,694 | 66,237 | ||
Total other liabilities | $ 193,268 | $ 183,731 |
Bank segment (HEI only) - Avail
Bank segment (HEI only) - Available For Sale Investment Securities (Details) $ in Thousands | Dec. 31, 2021USD ($)issue | Dec. 31, 2020USD ($)issue |
Available-for-sale | ||
Available-for-sale investment securities | $ 2,574,618 | $ 1,970,417 |
Held-to-maturity | ||
Amortized cost | 522,270 | 226,947 |
Held-to-maturity investment securities | 510,474 | |
American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 2,618,384 | 1,943,114 |
Gross unrealized gains | 7,969 | 30,454 |
Gross unrealized losses | (51,735) | (3,151) |
Available-for-sale investment securities | $ 2,574,618 | $ 1,970,417 |
Number of issues, less than 12 months | issue | 125 | 22 |
Fair value, less than 12 months | $ 1,902,850 | $ 373,924 |
Gross unrealized losses, less than 12 months | $ (38,850) | $ (3,151) |
Number of issues, more than 12 months | issue | 18 | 0 |
Fair value, 12 months or longer | $ 271,012 | $ 0 |
Gross unrealized losses, 12 months or longer | (12,885) | 0 |
Held-to-maturity | ||
Amortized cost | 522,270 | 226,947 |
Gross unrealized gains | 1,648 | 3,846 |
Gross unrealized losses | (13,444) | (830) |
Held-to-maturity investment securities | $ 510,474 | $ 229,963 |
Number of issues, less than 12 months | issue | 24 | 7 |
Fair value, less than 12 months | $ 330,477 | $ 114,152 |
Gross unrealized losses, less than 12 months | $ (7,835) | $ (830) |
Number of issues, more than 12 months | issue | 7 | 0 |
Fair value, 12 months or longer | $ 106,483 | $ 0 |
Gross unrealized losses, 12 months or longer | (5,609) | 0 |
American Savings Bank (ASB) | U.S. Treasury and federal agency obligations | ||
Available-for-sale | ||
Amortized cost | 89,714 | 60,260 |
Gross unrealized gains | 803 | 2,062 |
Gross unrealized losses | (427) | 0 |
Available-for-sale investment securities | $ 90,090 | $ 62,322 |
Number of issues, less than 12 months | issue | 4 | 0 |
Fair value, less than 12 months | $ 44,827 | $ 0 |
Gross unrealized losses, less than 12 months | $ (427) | $ 0 |
Number of issues, more than 12 months | issue | 0 | 0 |
Fair value, 12 months or longer | $ 0 | $ 0 |
Gross unrealized losses, 12 months or longer | 0 | 0 |
Held-to-maturity | ||
Amortized cost | 59,871 | |
Gross unrealized gains | 168 | |
Gross unrealized losses | (170) | |
Held-to-maturity investment securities | $ 59,869 | |
Number of issues, less than 12 months | issue | 2 | |
Fair value, less than 12 months | $ 39,594 | |
Gross unrealized losses, less than 12 months | $ (170) | |
Number of issues, more than 12 months | issue | 0 | |
Fair value, 12 months or longer | $ 0 | |
Gross unrealized losses, 12 months or longer | 0 | |
American Savings Bank (ASB) | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | ||
Available-for-sale | ||
Amortized cost | 2,482,618 | 1,825,893 |
Gross unrealized gains | 6,511 | 26,817 |
Gross unrealized losses | (51,206) | (3,151) |
Available-for-sale investment securities | $ 2,437,923 | $ 1,849,559 |
Number of issues, less than 12 months | issue | 120 | 22 |
Fair value, less than 12 months | $ 1,845,243 | $ 373,924 |
Gross unrealized losses, less than 12 months | $ (38,321) | $ (3,151) |
Number of issues, more than 12 months | issue | 18 | 0 |
Fair value, 12 months or longer | $ 271,012 | $ 0 |
Gross unrealized losses, 12 months or longer | (12,885) | 0 |
Held-to-maturity | ||
Amortized cost | 462,399 | 226,947 |
Gross unrealized gains | 1,480 | 3,846 |
Gross unrealized losses | (13,274) | (830) |
Held-to-maturity investment securities | $ 450,605 | $ 229,963 |
Number of issues, less than 12 months | issue | 22 | 7 |
Fair value, less than 12 months | $ 290,883 | $ 114,152 |
Gross unrealized losses, less than 12 months | $ (7,665) | $ (830) |
Number of issues, more than 12 months | issue | 7 | 0 |
Fair value, 12 months or longer | $ 106,483 | $ 0 |
Gross unrealized losses, 12 months or longer | (5,609) | 0 |
American Savings Bank (ASB) | Corporate bonds | ||
Available-for-sale | ||
Amortized cost | 30,625 | 29,776 |
Gross unrealized gains | 655 | 1,575 |
Gross unrealized losses | (102) | 0 |
Available-for-sale investment securities | $ 31,178 | $ 31,351 |
Number of issues, less than 12 months | issue | 1 | 0 |
Fair value, less than 12 months | $ 12,780 | $ 0 |
Gross unrealized losses, less than 12 months | $ (102) | $ 0 |
Number of issues, more than 12 months | issue | 0 | 0 |
Fair value, 12 months or longer | $ 0 | $ 0 |
Gross unrealized losses, 12 months or longer | 0 | 0 |
American Savings Bank (ASB) | Mortgage revenue bonds | ||
Available-for-sale | ||
Amortized cost | 15,427 | 27,185 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Available-for-sale investment securities | $ 15,427 | $ 27,185 |
Number of issues, less than 12 months | issue | 0 | 0 |
Fair value, less than 12 months | $ 0 | $ 0 |
Gross unrealized losses, less than 12 months | $ 0 | $ 0 |
Number of issues, more than 12 months | issue | 0 | 0 |
Fair value, 12 months or longer | $ 0 | $ 0 |
Gross unrealized losses, 12 months or longer | $ 0 | $ 0 |
Bank segment (HEI only) - Inves
Bank segment (HEI only) - Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Available-for-sale | |||
Due in one year or less | $ 15,055 | ||
Due after one year through five years | 62,461 | ||
Due after five years through ten years | 58,250 | ||
Due after ten years | 0 | ||
Total | 135,766 | ||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 2,482,618 | ||
Total available-for-sale securities | 2,618,384 | ||
Held-to-maturity | |||
Due in one year or less | 0 | ||
Due after one year through five years | 0 | ||
Due after five years through ten years | 59,871 | ||
Due after ten years | 0 | ||
Total | 59,871 | ||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 462,399 | ||
Amortized cost | 522,270 | ||
Available-for-sale | |||
Due in one year or less | 15,298 | ||
Due after one year through five years | 63,256 | ||
Due after five years through ten years | 58,141 | ||
Due after ten years | 0 | ||
Total | 136,695 | ||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 2,437,923 | ||
Total available-for-sale securities | 2,574,618 | $ 1,970,417 | |
Held-to-maturity | |||
Due in one year or less | 0 | ||
Due after one year through five years | 0 | ||
Due after five years through ten years | 59,869 | ||
Due after ten years | 0 | ||
Total | 59,869 | ||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 450,605 | ||
Total held-to-maturity securities | 510,474 | ||
Gains (losses) from sales of available-for-sale investments | |||
Proceeds | 197,354 | 169,157 | $ 19,810 |
Gross gains | 975 | 9,275 | 653 |
Gross losses | (447) | 0 | 0 |
Interest income from taxable and non-taxable investment securities | |||
Taxable | 42,534 | 29,760 | 31,848 |
Non-taxable | 930 | 769 | 1,074 |
Total | 43,464 | 30,529 | $ 32,922 |
Available-for-sale securities pledged at carrying value | 416,000 | 353,000 | |
Available-for-sale securities, pledged at carrying value as collateral for securities sold under agreements to repurchase | 161,000 | 92,000 | |
Stock in federal home loan bank at cost | 10,000 | 8,680 | |
FHLB Des Moines | |||
Interest income from taxable and non-taxable investment securities | |||
Stock in federal home loan bank at cost | $ 10,000 | $ 8,700 |
Bank segment (HEI only) - Loans
Bank segment (HEI only) - Loans Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans receivable | ||||
Total | $ 5,221,204 | $ 5,345,226 | ||
Less: Deferred fees and discounts | (10,090) | (11,383) | ||
Allowance for credit losses | (71,130) | (101,201) | $ (53,355) | $ (52,119) |
Total loans, net | 5,139,984 | 5,232,642 | ||
Real estate loans | ||||
Loans receivable | ||||
Total | 4,313,934 | 4,239,745 | ||
Residential 1-4 family | ||||
Loans receivable | ||||
Total | 2,299,212 | 2,144,239 | ||
Commercial real estate | ||||
Loans receivable | ||||
Total | 1,056,982 | 983,865 | ||
Home equity line of credit | ||||
Loans receivable | ||||
Total | 835,663 | 963,578 | ||
Residential land | ||||
Loans receivable | ||||
Total | 19,859 | 15,617 | ||
Commercial construction | ||||
Loans receivable | ||||
Total | 91,080 | 121,424 | ||
Residential construction | ||||
Loans receivable | ||||
Total | 11,138 | 11,022 | ||
Commercial | ||||
Loans receivable | ||||
Total | 793,304 | 936,748 | ||
Consumer | ||||
Loans receivable | ||||
Total | $ 113,966 | $ 168,733 |
Bank segment (HEI only) - Loa_2
Bank segment (HEI only) - Loans Receivable, Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Bank Segment Disclosure [Abstract] | |||
Percentage of benchmark loan to appraisal ratio in excess of which mortgage insurance is required | 80.00% | ||
Minimum benchmark percentage of loan to non-owner occupied residential property purchase | 75.00% | ||
Real estate loans for investors | $ 1,500 | $ 1,500 | $ 1,300 |
Loans pledged as collateral to secure advances from the FHLB of Des Moines | 2,800 | 3,000 | |
Loans to directors, executive directors, affiliates and any related interest of such individuals | 13.1 | 13.2 | |
Loan balances, related interests of individuals who are directors | $ 10 | $ 10 |
Bank segment (HEI only) - Allow
Bank segment (HEI only) - Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for credit losses: | ||||
Beginning balance | $ 101,201 | $ 53,355 | $ 52,119 | |
Charge-offs | (9,700) | (26,154) | (28,662) | |
Recoveries | 6,054 | 4,748 | 6,418 | |
Net (charge-offs) recoveries | (3,646) | (21,406) | (22,244) | |
Provision for credit losses | (26,425) | 49,811 | 23,480 | |
Ending balance | 71,130 | 101,201 | 53,355 | $ 52,119 |
Average loans outstanding | $ 5,220,491 | $ 5,340,287 | $ 4,986,830 | |
Net charge-offs (recoveries) to average loans | 0.07% | 0.40% | 0.45% | |
Ending balance: individually evaluated for impairment | $ 2,691 | |||
Ending balance: collectively evaluated for impairment | 50,664 | |||
Financing Receivables: | ||||
Loans held for investment | 5,120,664 | |||
Ending balance: individually evaluated for impairment | 40,737 | |||
Ending balance: collectively evaluated for impairment | $ 5,079,927 | |||
Accounting standards update, extensible Llist | Accounting Standards Update 2016-13 [Member] | Accounting Standards Update 2016-13 [Member] | ||
Commercial | ||||
Allowance for credit losses: | ||||
Beginning balance | $ 25,462 | $ 10,245 | $ 9,225 | |
Charge-offs | (1,561) | (5,819) | (6,811) | |
Recoveries | 1,468 | 872 | 2,351 | |
Net (charge-offs) recoveries | (93) | (4,947) | (4,460) | |
Provision for credit losses | (9,571) | 19,242 | 5,480 | |
Ending balance | 15,798 | 25,462 | 10,245 | $ 9,225 |
Average loans outstanding | $ 856,226 | $ 935,663 | $ 620,206 | |
Net charge-offs (recoveries) to average loans | 0.01% | 0.53% | 0.72% | |
Ending balance: individually evaluated for impairment | $ 1,015 | |||
Ending balance: collectively evaluated for impairment | 9,230 | |||
Financing Receivables: | ||||
Loans held for investment | 670,674 | |||
Ending balance: individually evaluated for impairment | 8,418 | |||
Ending balance: collectively evaluated for impairment | 662,256 | |||
Consumer | ||||
Allowance for credit losses: | ||||
Beginning balance | $ 23,950 | $ 16,206 | 16,769 | |
Charge-offs | (8,027) | (19,900) | (21,677) | |
Recoveries | 4,320 | 3,381 | 2,967 | |
Net (charge-offs) recoveries | (3,707) | (16,519) | (18,710) | |
Provision for credit losses | (4,659) | 7,800 | 18,147 | |
Ending balance | 15,584 | 23,950 | 16,206 | 16,769 |
Average loans outstanding | $ 135,609 | $ 215,994 | $ 270,340 | |
Net charge-offs (recoveries) to average loans | 2.73% | 7.65% | 6.92% | |
Ending balance: individually evaluated for impairment | $ 454 | |||
Ending balance: collectively evaluated for impairment | 15,752 | |||
Financing Receivables: | ||||
Loans held for investment | 257,921 | |||
Ending balance: individually evaluated for impairment | 507 | |||
Ending balance: collectively evaluated for impairment | 257,414 | |||
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 | 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 | |||
Residential 1-4 family | Real estate | ||||
Allowance for credit losses: | ||||
Beginning balance | $ 4,600 | 2,380 | 1,976 | |
Charge-offs | (67) | (7) | (26) | |
Recoveries | 92 | 394 | 854 | |
Net (charge-offs) recoveries | 25 | 387 | 828 | |
Provision for credit losses | 1,920 | (317) | (424) | |
Ending balance | 6,545 | 4,600 | 2,380 | 1,976 |
Average loans outstanding | $ 2,155,322 | $ 2,148,848 | $ 2,164,759 | |
Net charge-offs (recoveries) to average loans | 0.00% | (0.02%) | (0.04%) | |
Ending balance: individually evaluated for impairment | $ 898 | |||
Ending balance: collectively evaluated for impairment | 1,482 | |||
Financing Receivables: | ||||
Loans held for investment | 2,178,135 | |||
Ending balance: individually evaluated for impairment | 15,600 | |||
Ending balance: collectively evaluated for impairment | 2,162,535 | |||
Residential 1-4 family | Impact of adoption of ASU No. 2016-13 | Real estate | ||||
Allowance for credit losses: | ||||
Beginning balance | $ 2,150 | |||
Ending balance | 2,150 | |||
Commercial real estate | Real estate | ||||
Allowance for credit losses: | ||||
Beginning balance | $ 35,607 | 15,053 | 14,505 | |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | |
Provision for credit losses | (10,911) | 20,346 | 548 | |
Ending balance | 24,696 | 35,607 | 15,053 | 14,505 |
Average loans outstanding | $ 1,046,276 | $ 861,096 | $ 781,531 | |
Net charge-offs (recoveries) to average loans | 0.00% | 0.00% | 0.00% | |
Ending balance: individually evaluated for impairment | $ 2 | |||
Ending balance: collectively evaluated for impairment | 15,051 | |||
Financing Receivables: | ||||
Loans held for investment | 824,830 | |||
Ending balance: individually evaluated for impairment | 1,048 | |||
Ending balance: collectively evaluated for impairment | 823,782 | |||
Commercial real estate | Impact of adoption of ASU No. 2016-13 | Real estate | ||||
Allowance for credit losses: | ||||
Beginning balance | $ 208 | |||
Ending balance | 208 | |||
Home equity line of credit | Real estate | ||||
Allowance for credit losses: | ||||
Beginning balance | $ 6,813 | 6,922 | 6,371 | |
Charge-offs | (45) | (77) | (144) | |
Recoveries | 113 | 63 | 17 | |
Net (charge-offs) recoveries | 68 | (14) | (127) | |
Provision for credit losses | (1,224) | 446 | 678 | |
Ending balance | 5,657 | 6,813 | 6,922 | 6,371 |
Average loans outstanding | $ 885,759 | $ 1,060,444 | $ 1,043,479 | |
Net charge-offs (recoveries) to average loans | (0.01%) | 0.00% | 0.01% | |
Ending balance: individually evaluated for impairment | $ 322 | |||
Ending balance: collectively evaluated for impairment | 6,600 | |||
Financing Receivables: | ||||
Loans held for investment | 1,092,125 | |||
Ending balance: individually evaluated for impairment | 12,073 | |||
Ending balance: collectively evaluated for impairment | 1,080,052 | |||
Home equity line of credit | Impact of adoption of ASU No. 2016-13 | Real estate | ||||
Allowance for credit losses: | ||||
Beginning balance | $ (541) | |||
Ending balance | (541) | |||
Residential land | Real estate | ||||
Allowance for credit losses: | ||||
Beginning balance | $ 609 | 449 | 479 | |
Charge-offs | 0 | (351) | (4) | |
Recoveries | 61 | 38 | 229 | |
Net (charge-offs) recoveries | 61 | (313) | 225 | |
Provision for credit losses | (24) | 537 | (255) | |
Ending balance | 646 | 609 | 449 | 479 |
Average loans outstanding | $ 18,227 | $ 13,799 | $ 14,065 | |
Net charge-offs (recoveries) to average loans | (0.33%) | 2.27% | (1.60%) | |
Ending balance: individually evaluated for impairment | $ 0 | |||
Ending balance: collectively evaluated for impairment | 449 | |||
Financing Receivables: | ||||
Loans held for investment | 14,704 | |||
Ending balance: individually evaluated for impairment | 3,091 | |||
Ending balance: collectively evaluated for impairment | 11,613 | |||
Residential land | Impact of adoption of ASU No. 2016-13 | Real estate | ||||
Allowance for credit losses: | ||||
Beginning balance | $ (64) | |||
Ending balance | (64) | |||
Commercial construction | Real estate | ||||
Allowance for credit losses: | ||||
Beginning balance | $ 4,149 | 2,097 | 2,790 | |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | |
Provision for credit losses | (1,963) | 1,763 | (693) | |
Ending balance | 2,186 | 4,149 | 2,097 | 2,790 |
Average loans outstanding | $ 111,711 | $ 93,740 | $ 81,937 | |
Net charge-offs (recoveries) to average loans | 0.00% | 0.00% | 0.00% | |
Ending balance: individually evaluated for impairment | $ 0 | |||
Ending balance: collectively evaluated for impairment | 2,097 | |||
Financing Receivables: | ||||
Loans held for investment | 70,605 | |||
Ending balance: individually evaluated for impairment | 0 | |||
Ending balance: collectively evaluated for impairment | 70,605 | |||
Commercial construction | Impact of adoption of ASU No. 2016-13 | Real estate | ||||
Allowance for credit losses: | ||||
Beginning balance | $ 289 | |||
Ending balance | 289 | |||
Residential construction | Real estate | ||||
Allowance for credit losses: | ||||
Beginning balance | $ 11 | 3 | 4 | |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | |
Provision for credit losses | 7 | (6) | (1) | |
Ending balance | 18 | 11 | 3 | $ 4 |
Average loans outstanding | $ 11,361 | $ 10,703 | $ 10,513 | |
Net charge-offs (recoveries) to average loans | 0.00% | 0.00% | 0.00% | |
Ending balance: individually evaluated for impairment | $ 0 | |||
Ending balance: collectively evaluated for impairment | 3 | |||
Financing Receivables: | ||||
Loans held for investment | 11,670 | |||
Ending balance: individually evaluated for impairment | 0 | |||
Ending balance: collectively evaluated for impairment | 11,670 | |||
Residential construction | Impact of adoption of ASU No. 2016-13 | Real estate | ||||
Allowance for credit losses: | ||||
Beginning balance | $ 14 | |||
Ending balance | $ 14 |
Bank segment (HEI only) - All_2
Bank segment (HEI only) - Allowance for Loan Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for loan commitments: | ||
Beginning Balance | $ 4,300 | $ 1,741 |
Provision | 600 | 1,000 |
Ending Balance | 4,900 | 4,300 |
Impact of adoption of ASU No. 2016-13 | ||
Allowance for loan commitments: | ||
Beginning Balance | 1,559 | |
Real estate | Home equity line of credit | ||
Allowance for loan commitments: | ||
Beginning Balance | 300 | 392 |
Provision | 100 | 0 |
Ending Balance | 400 | 300 |
Real estate | Home equity line of credit | Impact of adoption of ASU No. 2016-13 | ||
Allowance for loan commitments: | ||
Beginning Balance | (92) | |
Real estate | Commercial construction | ||
Allowance for loan commitments: | ||
Beginning Balance | 3,000 | 931 |
Provision | 700 | 324 |
Ending Balance | 3,700 | 3,000 |
Real estate | Commercial construction | Impact of adoption of ASU No. 2016-13 | ||
Allowance for loan commitments: | ||
Beginning Balance | 1,745 | |
Commercial | ||
Allowance for loan commitments: | ||
Beginning Balance | 1,000 | 418 |
Provision | (200) | 676 |
Ending Balance | $ 800 | 1,000 |
Commercial | Impact of adoption of ASU No. 2016-13 | ||
Allowance for loan commitments: | ||
Beginning Balance | $ (94) |
Bank segment (HEI only) - Credi
Bank segment (HEI only) - Credit Risk Profile by Internally Assigned Grade for Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Credit risk profile by internally assigned grade for loans | ||
Current Year | $ 1,325,112 | $ 1,339,586 |
One Year Prior of Origination Year | 934,584 | 590,363 |
Two Years Prior of Origination Year | 367,452 | 382,648 |
Three Years Prior of Origination Year | 236,305 | 335,784 |
Four Years Prior of Origination Year | 217,965 | 368,904 |
More than Five Years Prior of Origination Year | 1,119,478 | 1,172,236 |
Revolving loans | 958,710 | 1,093,287 |
Converted to term loans | 61,598 | 62,418 |
Total | 5,221,204 | 5,345,226 |
30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 5,703 | 7,394 |
60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 2,749 | 5,411 |
Greater than 90 days | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 8,792 | 6,830 |
Consumer | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 37,838 | 29,546 |
One Year Prior of Origination Year | 15,889 | 69,325 |
Two Years Prior of Origination Year | 30,679 | 38,635 |
Three Years Prior of Origination Year | 11,506 | 7,646 |
Four Years Prior of Origination Year | 352 | 307 |
More than Five Years Prior of Origination Year | 238 | 348 |
Revolving loans | 13,044 | 18,848 |
Converted to term loans | 4,420 | 4,078 |
Total | 113,966 | 168,733 |
Conversion of debt | 2,700 | |
Consumer | Current | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 37,563 | 28,818 |
One Year Prior of Origination Year | 15,488 | 67,159 |
Two Years Prior of Origination Year | 29,383 | 37,072 |
Three Years Prior of Origination Year | 10,897 | 7,207 |
Four Years Prior of Origination Year | 302 | 293 |
More than Five Years Prior of Origination Year | 238 | 348 |
Revolving loans | 12,740 | 18,351 |
Converted to term loans | 4,157 | 3,758 |
Total | 110,768 | 163,006 |
Consumer | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 202 | 406 |
One Year Prior of Origination Year | 181 | 1,085 |
Two Years Prior of Origination Year | 517 | 727 |
Three Years Prior of Origination Year | 234 | 155 |
Four Years Prior of Origination Year | 15 | 4 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 156 | 138 |
Converted to term loans | 70 | 90 |
Total | 1,375 | 2,605 |
Consumer | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 59 | 191 |
One Year Prior of Origination Year | 127 | 549 |
Two Years Prior of Origination Year | 392 | 427 |
Three Years Prior of Origination Year | 183 | 165 |
Four Years Prior of Origination Year | 8 | 3 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 7 | 97 |
Converted to term loans | 106 | 59 |
Total | 882 | 1,491 |
Consumer | Greater than 90 days | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 14 | 131 |
One Year Prior of Origination Year | 93 | 532 |
Two Years Prior of Origination Year | 387 | 409 |
Three Years Prior of Origination Year | 192 | 119 |
Four Years Prior of Origination Year | 27 | 7 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 141 | 262 |
Converted to term loans | 87 | 171 |
Total | 941 | 1,631 |
Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 266,554 | 430,228 |
One Year Prior of Origination Year | 124,483 | 148,663 |
Two Years Prior of Origination Year | 93,137 | 79,496 |
Three Years Prior of Origination Year | 58,476 | 40,218 |
Four Years Prior of Origination Year | 35,915 | 50,326 |
More than Five Years Prior of Origination Year | 78,497 | 52,133 |
Revolving loans | 119,059 | 111,534 |
Converted to term loans | 17,183 | 24,150 |
Total | 793,304 | 936,748 |
Conversion of debt | 1,800 | |
Commercial | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 700 | 608 |
Commercial | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 313 | 300 |
Commercial | Greater than 90 days | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 48 | 132 |
Pass | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 266,087 | 392,088 |
One Year Prior of Origination Year | 96,963 | 117,791 |
Two Years Prior of Origination Year | 79,329 | 75,533 |
Three Years Prior of Origination Year | 56,497 | 29,211 |
Four Years Prior of Origination Year | 31,019 | 12,520 |
More than Five Years Prior of Origination Year | 66,570 | 35,770 |
Revolving loans | 96,673 | 74,520 |
Converted to term loans | 15,510 | 11,004 |
Total | 708,648 | 748,437 |
Special Mention | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 40 | 37,836 |
One Year Prior of Origination Year | 27,336 | 23,087 |
Two Years Prior of Origination Year | 10,071 | 1,920 |
Three Years Prior of Origination Year | 202 | 6,990 |
Four Years Prior of Origination Year | 439 | 30,264 |
More than Five Years Prior of Origination Year | 8,966 | 13,250 |
Revolving loans | 15,303 | 31,362 |
Converted to term loans | 18 | 11,218 |
Total | 62,375 | 155,927 |
Substandard | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 427 | 304 |
One Year Prior of Origination Year | 184 | 7,785 |
Two Years Prior of Origination Year | 3,737 | 2,043 |
Three Years Prior of Origination Year | 1,777 | 4,017 |
Four Years Prior of Origination Year | 4,457 | 7,542 |
More than Five Years Prior of Origination Year | 2,961 | 3,113 |
Revolving loans | 7,083 | 5,265 |
Converted to term loans | 1,655 | 1,928 |
Total | 22,281 | 31,997 |
Doubtful | Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 0 | 387 |
Converted to term loans | 0 | 0 |
Total | 0 | 387 |
Residential 1-4 family | Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 791,758 | 567,282 |
One Year Prior of Origination Year | 461,683 | 219,464 |
Two Years Prior of Origination Year | 136,332 | 111,243 |
Three Years Prior of Origination Year | 65,230 | 204,269 |
Four Years Prior of Origination Year | 124,994 | 184,888 |
More than Five Years Prior of Origination Year | 719,215 | 857,093 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 2,299,212 | 2,144,239 |
Residential 1-4 family | Real estate | Current | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 791,758 | 567,282 |
One Year Prior of Origination Year | 461,683 | 218,988 |
Two Years Prior of Origination Year | 133,345 | 111,243 |
Three Years Prior of Origination Year | 64,421 | 203,916 |
Four Years Prior of Origination Year | 124,994 | 184,888 |
More than Five Years Prior of Origination Year | 712,452 | 849,788 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 2,288,653 | 2,136,105 |
Residential 1-4 family | Real estate | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 809 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 2,210 | 2,629 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 3,019 | 2,629 |
Residential 1-4 family | Real estate | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 476 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 1,468 | 2,314 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 1,468 | 2,790 |
Residential 1-4 family | Real estate | Greater than 90 days | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 2,987 | 0 |
Three Years Prior of Origination Year | 0 | 353 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 3,085 | 2,362 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 6,072 | 2,715 |
Home equity line of credit | ||
Credit risk profile by internally assigned grade for loans | ||
Conversion of debt | 16,000 | |
Home equity line of credit | Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 795,668 | 929,388 |
Converted to term loans | 39,995 | 34,190 |
Total | 835,663 | 963,578 |
Home equity line of credit | Real estate | Current | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 794,518 | 927,106 |
Converted to term loans | 39,116 | 33,228 |
Total | 833,634 | 960,334 |
Home equity line of credit | Real estate | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 296 | 552 |
Converted to term loans | 313 | 298 |
Total | 609 | 850 |
Home equity line of credit | Real estate | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 16 | 267 |
Converted to term loans | 70 | 75 |
Total | 86 | 342 |
Home equity line of credit | Real estate | Greater than 90 days | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 838 | 1,463 |
Converted to term loans | 496 | 589 |
Total | 1,334 | 2,052 |
Residential land | Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 10,572 | 8,357 |
One Year Prior of Origination Year | 6,794 | 3,427 |
Two Years Prior of Origination Year | 1,116 | 1,598 |
Three Years Prior of Origination Year | 532 | 939 |
Four Years Prior of Origination Year | 267 | 22 |
More than Five Years Prior of Origination Year | 578 | 1,274 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 19,859 | 15,617 |
Residential land | Real estate | Current | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 10,572 | 8,357 |
One Year Prior of Origination Year | 6,794 | 3,427 |
Two Years Prior of Origination Year | 1,116 | 1,598 |
Three Years Prior of Origination Year | 532 | 939 |
Four Years Prior of Origination Year | 267 | 22 |
More than Five Years Prior of Origination Year | 181 | 272 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 19,462 | 14,615 |
Residential land | Real estate | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 702 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 702 |
Residential land | Real estate | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Residential land | Real estate | Greater than 90 days | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 397 | 300 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 397 | 300 |
Residential construction | Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 7,856 | 6,919 |
One Year Prior of Origination Year | 3,019 | 3,093 |
Two Years Prior of Origination Year | 0 | 385 |
Three Years Prior of Origination Year | 0 | 625 |
Four Years Prior of Origination Year | 263 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 11,138 | 11,022 |
Residential construction | Real estate | Current | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 7,856 | 6,919 |
One Year Prior of Origination Year | 3,019 | 3,093 |
Two Years Prior of Origination Year | 0 | 385 |
Three Years Prior of Origination Year | 0 | 625 |
Four Years Prior of Origination Year | 263 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 11,138 | 11,022 |
Residential construction | Real estate | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Residential construction | Real estate | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Residential construction | Real estate | Greater than 90 days | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Commercial real estate | Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 193,394 | 280,864 |
One Year Prior of Origination Year | 279,455 | 114,426 |
Two Years Prior of Origination Year | 106,188 | 124,301 |
Three Years Prior of Origination Year | 89,219 | 64,087 |
Four Years Prior of Origination Year | 56,174 | 127,799 |
More than Five Years Prior of Origination Year | 320,950 | 261,388 |
Revolving loans | 11,602 | 11,000 |
Converted to term loans | 0 | 0 |
Total | 1,056,982 | 983,865 |
Commercial real estate | Real estate | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
Commercial real estate | Real estate | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 488 |
Commercial real estate | Real estate | Greater than 90 days | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
Commercial real estate | Pass | Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 173,794 | 270,603 |
One Year Prior of Origination Year | 275,242 | 63,301 |
Two Years Prior of Origination Year | 49,317 | 62,168 |
Three Years Prior of Origination Year | 56,490 | 28,432 |
Four Years Prior of Origination Year | 33,581 | 55,089 |
More than Five Years Prior of Origination Year | 259,583 | 155,654 |
Revolving loans | 11,602 | 11,000 |
Converted to term loans | 0 | 0 |
Total | 859,609 | 646,247 |
Commercial real estate | Special Mention | Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 19,600 | 10,261 |
One Year Prior of Origination Year | 3,529 | 36,405 |
Two Years Prior of Origination Year | 42,935 | 57,952 |
Three Years Prior of Origination Year | 30,870 | 33,763 |
Four Years Prior of Origination Year | 20,788 | 68,287 |
More than Five Years Prior of Origination Year | 32,824 | 48,094 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 150,546 | 254,762 |
Commercial real estate | Substandard | Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 684 | 14,720 |
Two Years Prior of Origination Year | 13,936 | 4,181 |
Three Years Prior of Origination Year | 1,859 | 1,892 |
Four Years Prior of Origination Year | 1,805 | 4,423 |
More than Five Years Prior of Origination Year | 28,543 | 57,640 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 46,827 | 82,856 |
Commercial real estate | Doubtful | Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Commercial construction | Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 17,140 | 16,390 |
One Year Prior of Origination Year | 43,261 | 31,965 |
Two Years Prior of Origination Year | 0 | 26,990 |
Three Years Prior of Origination Year | 11,342 | 18,000 |
Four Years Prior of Origination Year | 0 | 5,562 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 19,337 | 22,517 |
Converted to term loans | 0 | 0 |
Total | 91,080 | 121,424 |
Commercial construction | Real estate | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
Commercial construction | Real estate | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
Commercial construction | Real estate | Greater than 90 days | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
Commercial construction | Pass | Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 17,140 | 14,480 |
One Year Prior of Origination Year | 43,261 | 31,965 |
Two Years Prior of Origination Year | 0 | 26,990 |
Three Years Prior of Origination Year | 11,342 | 0 |
Four Years Prior of Origination Year | 0 | 5,562 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 19,337 | 22,517 |
Converted to term loans | 0 | 0 |
Total | 91,080 | 101,514 |
Commercial construction | Special Mention | Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 1,910 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 18,000 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 19,910 |
Commercial construction | Substandard | Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Commercial construction | Doubtful | Real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current Year | 0 | 0 |
One Year Prior of Origination Year | 0 | 0 |
Two Years Prior of Origination Year | 0 | 0 |
Three Years Prior of Origination Year | 0 | 0 |
Four Years Prior of Origination Year | 0 | 0 |
More than Five Years Prior of Origination Year | 0 | 0 |
Revolving loans | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | $ 0 | $ 0 |
Bank segment (HEI only) - Cre_2
Bank segment (HEI only) - Credit Risk Profile Based on Payment Activity for Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Credit risk profile based on payment activity for loans | ||
Total financing receivables | $ 5,221,204 | $ 5,345,226 |
Recorded investment> 90 days and accruing | 0 | 0 |
Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 793,304 | 936,748 |
Recorded investment> 90 days and accruing | 0 | 0 |
Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 113,966 | 168,733 |
Recorded investment> 90 days and accruing | 0 | 0 |
Residential 1-4 family | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,299,212 | 2,144,239 |
Recorded investment> 90 days and accruing | 0 | 0 |
Commercial real estate | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,056,982 | 983,865 |
Recorded investment> 90 days and accruing | 0 | 0 |
Home equity line of credit | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 835,663 | 963,578 |
Recorded investment> 90 days and accruing | 0 | 0 |
Residential land | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 19,859 | 15,617 |
Recorded investment> 90 days and accruing | 0 | 0 |
Commercial construction | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 91,080 | 121,424 |
Recorded investment> 90 days and accruing | 0 | 0 |
Residential construction | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 11,138 | 11,022 |
Recorded investment> 90 days and accruing | 0 | 0 |
30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 5,703 | 7,394 |
30-59 days past due | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 700 | 608 |
30-59 days past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,375 | 2,605 |
30-59 days past due | Residential 1-4 family | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 3,019 | 2,629 |
30-59 days past due | Commercial real estate | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
30-59 days past due | Home equity line of credit | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 609 | 850 |
30-59 days past due | Residential land | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 702 |
30-59 days past due | Commercial construction | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
30-59 days past due | Residential construction | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,749 | 5,411 |
60-89 days past due | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 313 | 300 |
60-89 days past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 882 | 1,491 |
60-89 days past due | Residential 1-4 family | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,468 | 2,790 |
60-89 days past due | Commercial real estate | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 488 |
60-89 days past due | Home equity line of credit | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 86 | 342 |
60-89 days past due | Residential land | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
60-89 days past due | Commercial construction | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
60-89 days past due | Residential construction | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Greater than 90 days | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 8,792 | 6,830 |
Greater than 90 days | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 48 | 132 |
Greater than 90 days | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 941 | 1,631 |
Greater than 90 days | Residential 1-4 family | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 6,072 | 2,715 |
Greater than 90 days | Commercial real estate | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Greater than 90 days | Home equity line of credit | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,334 | 2,052 |
Greater than 90 days | Residential land | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 397 | 300 |
Greater than 90 days | Commercial construction | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Greater than 90 days | Residential construction | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Total past due | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 17,244 | 19,635 |
Total past due | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,061 | 1,040 |
Total past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 3,198 | 5,727 |
Total past due | Residential 1-4 family | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 10,559 | 8,134 |
Total past due | Commercial real estate | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 488 |
Total past due | Home equity line of credit | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,029 | 3,244 |
Total past due | Residential land | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 397 | 1,002 |
Total past due | Commercial construction | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Total past due | Residential construction | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Current | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 5,203,960 | 5,325,591 |
Current | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 792,243 | 935,708 |
Current | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 110,768 | 163,006 |
Current | Residential 1-4 family | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,288,653 | 2,136,105 |
Current | Commercial real estate | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,056,982 | 983,377 |
Current | Home equity line of credit | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 833,634 | 960,334 |
Current | Residential land | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 19,462 | 14,615 |
Current | Commercial construction | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 91,080 | 121,424 |
Current | Residential construction | Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | $ 11,138 | $ 11,022 |
Bank segment (HEI only) - Cre_3
Bank segment (HEI only) - Credit Risk Profile - Nonaccrual Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | $ 37,764 | $ 36,491 |
Without a Related ACL | 7,210 | 10,905 |
Total | 44,974 | 47,396 |
Total troubled debt restructured loans accruing interest | 24,917 | 27,078 |
Commercial | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 1,446 | 1,819 |
Without a Related ACL | 692 | 3,328 |
Total | 2,138 | 5,147 |
Total troubled debt restructured loans accruing interest | 7,860 | 6,108 |
Consumer | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 1,845 | 3,935 |
Without a Related ACL | 0 | 0 |
Total | 1,845 | 3,935 |
Total troubled debt restructured loans accruing interest | 52 | 54 |
Residential 1-4 family | Real estate | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 16,045 | 8,991 |
Without a Related ACL | 3,703 | 2,835 |
Total | 19,748 | 11,826 |
Total troubled debt restructured loans accruing interest | 6,949 | 7,932 |
Commercial real estate | Real estate | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 14,104 | 15,847 |
Without a Related ACL | 1,221 | 2,875 |
Total | 15,325 | 18,722 |
Total troubled debt restructured loans accruing interest | 3,055 | 3,281 |
Home equity line of credit | Real estate | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 4,227 | 5,791 |
Without a Related ACL | 1,294 | 1,567 |
Total | 5,521 | 7,358 |
Total troubled debt restructured loans accruing interest | 6,021 | 8,148 |
Residential land | Real estate | ||
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 restructured loans accruing interest | 980 | 1,555 |
Commercial construction | Real estate | ||
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 restructured loans accruing interest | 0 | 0 |
Residential construction | Real estate | ||
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 restructured loans accruing interest | $ 0 | $ 0 |
Bank segment (HEI only) - TDR N
Bank segment (HEI only) - TDR Narrative (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Residential land | |
Troubled debt restructurings | |
Period of interest-only monthly payment term loan | 3 years |
Bank segment (HEI only) - Loan
Bank segment (HEI only) - Loan Modifications (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)contract | Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract | |
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 24 | 68 | 25 |
Outstanding recorded investment | $ 12,109 | $ 26,991 | $ 8,821 |
Related allowance | $ 685 | $ 5,379 | $ 680 |
Number of contracts | contract | 2 | 0 | 0 |
Recorded investment | $ 483 | $ 0 | $ 0 |
Commitments to borrowers whose loan terms are impaired or modified under troubled debt restructuring | $ 0 | $ 0 | |
Residential 1-4 family | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 14 | 1 | 11 |
Outstanding recorded investment | $ 8,379 | $ 144 | $ 1,770 |
Related allowance | $ 442 | $ 6 | $ 190 |
Number of contracts | contract | 1 | 0 | 0 |
Recorded investment | $ 474 | $ 0 | $ 0 |
Commercial real estate | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 6 | 0 |
Outstanding recorded investment | $ 0 | $ 20,714 | $ 0 |
Related allowance | $ 0 | $ 4,439 | $ 0 |
Number of contracts | contract | 0 | 0 | 0 |
Recorded investment | $ 0 | $ 0 | $ 0 |
Home equity line of credit | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 3 | 3 |
Outstanding recorded investment | $ 0 | $ 85 | $ 442 |
Related allowance | $ 0 | $ 11 | $ 73 |
Number of contracts | contract | 0 | 0 | 0 |
Recorded investment | $ 0 | $ 0 | $ 0 |
Residential land | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 3 | 4 | 3 |
Outstanding recorded investment | $ 799 | $ 668 | $ 1,086 |
Related allowance | $ 38 | $ 54 | $ 0 |
Number of contracts | contract | 0 | 0 | 0 |
Recorded investment | $ 0 | $ 0 | $ 0 |
Commercial construction | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 0 |
Outstanding recorded investment | $ 0 | $ 0 | $ 0 |
Related allowance | $ 0 | $ 0 | $ 0 |
Number of contracts | contract | 0 | 0 | 0 |
Recorded investment | $ 0 | $ 0 | $ 0 |
Residential construction | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 0 |
Outstanding recorded investment | $ 0 | $ 0 | $ 0 |
Related allowance | $ 0 | $ 0 | $ 0 |
Number of contracts | contract | 0 | 0 | 0 |
Recorded investment | $ 0 | $ 0 | $ 0 |
Commercial | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 7 | 54 | 8 |
Outstanding recorded investment | $ 2,931 | $ 5,380 | $ 5,523 |
Related allowance | $ 205 | $ 869 | $ 417 |
Number of contracts | contract | 1 | 0 | 0 |
Recorded investment | $ 9 | $ 0 | $ 0 |
Consumer | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 0 |
Outstanding recorded investment | $ 0 | $ 0 | $ 0 |
Related allowance | $ 0 | $ 0 | $ 0 |
Number of contracts | contract | 0 | 0 | 0 |
Recorded investment | $ 0 | $ 0 | $ 0 |
Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Minimum period of payment default of loans determined to be TDRs | 90 days | 90 days | 90 days |
Bank segment (HEI only) - Colla
Bank segment (HEI only) - Collateral-Dependent Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Nonaccrual [Line Items] | |||
Amortized cost | $ 5,120,664 | ||
Consumer mortgage loans collateralized by residential real estate property in foreclosure process | $ 3,400 | $ 3,800 | |
Commercial | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Amortized cost | $ 670,674 | ||
Residential real estate property | Real estate | Residential 1-4 family | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Amortized cost | 3,493 | 2,541 | |
Residential real estate property | Real estate | Home equity line of credit | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Amortized cost | 1,294 | 1,567 | |
Residential real estate property | Real estate | Residential land | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Amortized cost | 300 | 300 | |
Commercial real estate | Real estate | Commercial real estate | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Amortized cost | 1,221 | 2,875 | |
Business assets | Commercial | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Amortized cost | 692 | 934 | |
Collateral Pledged | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Amortized cost | 7,000 | 8,217 | |
Collateral Pledged | Real estate | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Amortized cost | $ 6,308 | $ 7,283 |
Bank segment (HEI only) - Carry
Bank segment (HEI only) - Carrying Amount of Impaired Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Recorded investment | |
With no related allowance recorded | $ 14,037 |
With an allowance recorded | 26,700 |
Total | 40,737 |
Unpaid principal balance | |
With no related allowance recorded | 15,123 |
With an allowance recorded | 26,762 |
Total | 41,885 |
Related allowance | |
Total | 2,691 |
Average recorded investment | |
With no related allowance recorded | 17,422 |
With an allowance recorded | 27,972 |
Total | 45,394 |
Interest income recognized | |
With no related allowance recorded | 1,400 |
With an allowance recorded | 1,119 |
Total | 2,519 |
Residential 1-4 family | |
Recorded investment | |
With no related allowance recorded | 6,817 |
With an allowance recorded | 8,783 |
Total | 15,600 |
Unpaid principal balance | |
With no related allowance recorded | 7,207 |
With an allowance recorded | 8,835 |
Total | 16,042 |
Related allowance | |
Total | 898 |
Average recorded investment | |
With no related allowance recorded | 8,169 |
With an allowance recorded | 8,390 |
Total | 16,559 |
Interest income recognized | |
With no related allowance recorded | 907 |
With an allowance recorded | 359 |
Total | 1,266 |
Commercial real estate | |
Recorded investment | |
With no related allowance recorded | 195 |
With an allowance recorded | 853 |
Total | 1,048 |
Unpaid principal balance | |
With no related allowance recorded | 200 |
With an allowance recorded | 853 |
Total | 1,053 |
Related allowance | |
Total | 2 |
Average recorded investment | |
With no related allowance recorded | 16 |
With an allowance recorded | 886 |
Total | 902 |
Interest income recognized | |
With no related allowance recorded | 0 |
With an allowance recorded | 37 |
Total | 37 |
Home equity line of credit | |
Recorded investment | |
With no related allowance recorded | 1,984 |
With an allowance recorded | 10,089 |
Total | 12,073 |
Unpaid principal balance | |
With no related allowance recorded | 2,135 |
With an allowance recorded | 10,099 |
Total | 12,234 |
Related allowance | |
Total | 322 |
Average recorded investment | |
With no related allowance recorded | 2,020 |
With an allowance recorded | 11,319 |
Total | 13,339 |
Interest income recognized | |
With no related allowance recorded | 84 |
With an allowance recorded | 567 |
Total | 651 |
Residential land | |
Recorded investment | |
With no related allowance recorded | 3,091 |
With an allowance recorded | 0 |
Total | 3,091 |
Unpaid principal balance | |
With no related allowance recorded | 3,294 |
With an allowance recorded | 0 |
Total | 3,294 |
Related allowance | |
Total | 0 |
Average recorded investment | |
With no related allowance recorded | 2,662 |
With an allowance recorded | 27 |
Total | 2,689 |
Interest income recognized | |
With no related allowance recorded | 129 |
With an allowance recorded | 0 |
Total | 129 |
Commercial construction | |
Recorded investment | |
With no related allowance recorded | 0 |
With an allowance recorded | 0 |
Total | 0 |
Unpaid principal balance | |
With no related allowance recorded | 0 |
With an allowance recorded | 0 |
Total | 0 |
Related allowance | |
Total | 0 |
Average recorded investment | |
With no related allowance recorded | 0 |
With an allowance recorded | 0 |
Total | 0 |
Interest income recognized | |
With no related allowance recorded | 0 |
With an allowance recorded | 0 |
Total | 0 |
Residential construction | |
Recorded investment | |
With no related allowance recorded | 0 |
With an allowance recorded | 0 |
Total | 0 |
Unpaid principal balance | |
With no related allowance recorded | 0 |
With an allowance recorded | 0 |
Total | 0 |
Related allowance | |
Total | 0 |
Average recorded investment | |
With no related allowance recorded | 0 |
With an allowance recorded | 0 |
Total | 0 |
Interest income recognized | |
With no related allowance recorded | 0 |
With an allowance recorded | 0 |
Total | 0 |
Commercial | |
Recorded investment | |
With no related allowance recorded | 1,948 |
With an allowance recorded | 6,470 |
Total | 8,418 |
Unpaid principal balance | |
With no related allowance recorded | 2,285 |
With an allowance recorded | 6,470 |
Total | 8,755 |
Related allowance | |
Total | 1,015 |
Average recorded investment | |
With no related allowance recorded | 4,534 |
With an allowance recorded | 6,990 |
Total | 11,524 |
Interest income recognized | |
With no related allowance recorded | 276 |
With an allowance recorded | 132 |
Total | 408 |
Consumer | |
Recorded investment | |
With no related allowance recorded | 2 |
With an allowance recorded | 505 |
Total | 507 |
Unpaid principal balance | |
With no related allowance recorded | 2 |
With an allowance recorded | 505 |
Total | 507 |
Related allowance | |
Total | 454 |
Average recorded investment | |
With no related allowance recorded | 21 |
With an allowance recorded | 360 |
Total | 381 |
Interest income recognized | |
With no related allowance recorded | 4 |
With an allowance recorded | 24 |
Total | $ 28 |
Bank segment (HEI only) - Mortg
Bank segment (HEI only) - Mortgage Servicing Rights, Narrative (Details) - American Savings Bank (ASB) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loans receivable | |||
Repurchased mortgage loans | $ 0 | $ 0 | $ 0 |
Mortgage loans repurchase reserve | 0.1 | 0.1 | |
Mortgage servicing fees | 3.8 | 3.4 | 3 |
Residential land | |||
Loans receivable | |||
Proceeds from sale of residential loans | 364.8 | 567.7 | 277.1 |
Gain on sale of mortgage loans | $ 9.3 | $ 23.7 | $ 4.9 |
Bank segment (HEI only) - Mor_2
Bank segment (HEI only) - Mortgage Servicing Rights (Details) - American Savings Bank (ASB) - Allowance for mortgage-servicing assets – bank - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans receivable | ||||
Gross carrying amount | $ 18,674 | $ 22,950 | ||
Accumulated amortization | (8,724) | (12,670) | ||
Valuation allowance | 0 | (260) | $ 0 | $ 0 |
Net carrying amount | $ 9,950 | $ 10,020 | $ 9,101 |
Bank segment (HEI only) - Mor_3
Bank segment (HEI only) - Mortgage Servicing Rights and Valuation Allowance Roll Forward (Details) - American Savings Bank (ASB) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Mortgage servicing rights | |||
Beginning balance | $ 10,020 | ||
Ending balance | 9,950 | $ 10,020 | |
Allowance for mortgage-servicing assets – bank | |||
Mortgage servicing rights | |||
Beginning balance | 10,280 | 9,101 | $ 8,062 |
Amount capitalized | 3,404 | 5,096 | 2,987 |
Amortization | (3,734) | (3,917) | (1,948) |
Sale of mortgage servicing rights | 0 | 0 | 0 |
Other-than-temporary impairment | 0 | 0 | 0 |
Ending balance | 9,950 | 10,280 | 9,101 |
Valuation allowance for mortgage servicing rights | |||
Beginning balance | 260 | 0 | 0 |
Provision | (260) | 260 | 0 |
Other-than-temporary impairment | 0 | 0 | 0 |
Ending balance | 0 | 260 | 0 |
Net carrying amount | 9,950 | $ 10,020 | $ 9,101 |
Estimated Aggregate Amortization Expenses of Mortgage Servicing Rights | |||
2022 | 1,600 | ||
2023 | 1,300 | ||
2024 | 1,200 | ||
2025 | 1,000 | ||
2026 | $ 900 |
Bank segment (HEI only) - Key A
Bank segment (HEI only) - Key Assumptions Used in Estimating the Fair Value of ASB's Mortgage Servicing Rights (Details) - Allowance for mortgage-servicing assets – bank $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Prepayment rate: | ||
25 basis points adverse rate change | $ (714) | $ (738) |
50 basis points adverse rate change | (1,608) | (1,445) |
Discount rate: | ||
25 basis points adverse rate change | (129) | (68) |
50 basis points adverse rate change | (256) | (135) |
American Savings Bank (ASB) | ||
Mortgage Servicing Rights | ||
Unpaid principal balance | $ 1,481,899 | $ 1,450,312 |
Weighted average note rate | 3.38% | 3.68% |
American Savings Bank (ASB) | Weighted average discount rate | ||
Mortgage Servicing Rights | ||
Weighted average measurement input | 0.0925 | 0.0925 |
American Savings Bank (ASB) | Weighted average prepayment speed | ||
Mortgage Servicing Rights | ||
Weighted average measurement input | 0.0977 | 0.1770 |
Bank segment (HEI only) - Depos
Bank segment (HEI only) - Deposit Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted-average stated rate | |||
Savings | 0.03% | 0.03% | |
Checking, interest-bearing | 0.02% | 0.02% | |
Checking, Noninterest-bearing | 0.00% | 0.00% | |
Commercial checking | 0.00% | 0.00% | |
Money market | 0.06% | 0.09% | |
Time certificates | 0.67% | 0.99% | |
Weighted-average stated rate | 0.05% | 0.09% | |
Deposit liabilities | |||
Savings | $ 3,234,646 | $ 2,873,727 | |
Checking | |||
Interest-bearing | 1,344,049 | 1,196,675 | |
Noninterest-bearing | 1,472,727 | 1,329,264 | |
Commercial checking | 1,503,905 | 1,269,236 | |
Money market | 192,909 | 169,225 | |
Time certificates | 423,976 | 548,830 | |
Amount | 8,172,212 | 7,386,957 | |
Certificate accounts of $250,000 or more | 87,600 | 121,300 | |
Term certificates outstanding, scheduled maturities | |||
2022 | 275,702 | ||
2023 | 60,049 | ||
2024 | 47,248 | ||
2025 | 24,278 | ||
2026 | 13,736 | ||
Thereafter | 2,963 | ||
Total | 423,976 | ||
Overdrawn deposit accounts classified as loans | 1,300 | 1,000 | |
Interest expense on deposit liabilities by type of deposit | |||
Time certificates | 3,805 | 7,944 | $ 12,675 |
Savings | 802 | 1,774 | 1,904 |
Money market | 132 | 465 | 953 |
Interest-bearing checking | 242 | 471 | 1,298 |
Interest expense on deposit liabilities | $ 4,981 | $ 10,654 | $ 16,830 |
Bank segment (HEI only) - Secur
Bank segment (HEI only) - Securities Sold Under Agreements to Repurchase, Including Related Collateral Received From or Pledged to Counterparties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Securities sold under agreements to repurchase | |||
Gross amount of recognized liabilities | $ 88,000 | $ 90,000 | |
Gross amount offset in the Balance Sheets | 0 | 0 | |
Net amount of liabilities presented in the Balance Sheets | $ 88,000 | 90,000 | |
Fair value of collateral, percent of fair value | 5.00% | ||
Repurchase liability | $ 88,305 | $ 89,670 | |
Weighted-average interest rate as of end of the period | 0.02% | 0.02% | |
Identical securities | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $ 88,305 | $ 89,670 | $ 115,110 |
Average amount outstanding during the year | 88,405 | 73,738 | 79,598 |
Maximum amount outstanding as of any month-end | $ 129,665 | $ 100,580 | $ 115,110 |
Weighted-average interest rate as of end of the period | 0.02% | 0.02% | 0.98% |
Weighted-average interest rate during the year | 0.02% | 0.42% | 0.96% |
Weighted-average remaining days to maturity as of end of the period | 1 day | 1 day | 1 day |
Commercial account holders | |||
Securities sold under agreements to repurchase | |||
Net amount of liabilities presented in the Balance Sheets | $ 88,000 | $ 90,000 | |
Financial instruments | 161,000 | 92,000 | |
Cash collateral pledged | $ 0 | $ 0 |
Bank segment (HEI only) - Sec_2
Bank segment (HEI only) - Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 88,305 | $ 89,670 |
Weighted-average interest rate | 0.02% | 0.02% |
Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | ||
Securities sold under agreements to repurchase | ||
Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | $ 160,847 | $ 92,478 |
Overnight | ||
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 88,305 | $ 89,670 |
Weighted-average interest rate | 0.02% | 0.02% |
Overnight | Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | ||
Securities sold under agreements to repurchase | ||
Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | $ 160,847 | $ 92,478 |
1 to 29 days | ||
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 0 | $ 0 |
Weighted-average interest rate | 0.00% | 0.00% |
1 to 29 days | Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | ||
Securities sold under agreements to repurchase | ||
Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | $ 0 | $ 0 |
30 to 90 days | ||
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 0 | $ 0 |
Weighted-average interest rate | 0.00% | 0.00% |
30 to 90 days | Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | ||
Securities sold under agreements to repurchase | ||
Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | $ 0 | $ 0 |
Over 90 days | ||
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 0 | $ 0 |
Weighted-average interest rate | 0.00% | 0.00% |
Over 90 days | Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | ||
Securities sold under agreements to repurchase | ||
Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | $ 0 | $ 0 |
Bank segment (HEI only) - FHLB
Bank segment (HEI only) - FHLB Advances (Details) - American Savings Bank (ASB) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB advances | $ 0 | $ 0 |
FHLB advances, unused funds | $ 2,000,000,000 | $ 2,100,000,000 |
Bank segment (HEI only) - Addit
Bank segment (HEI only) - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 1988 | |
Hawaiian Electric (parent only) | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Cash dividends paid | $ 172 | $ 145 | $ 157 | |
Hawaiian Electric (parent only) | Consolidated subsidiary | American Savings Bank (ASB) | Management and administrative services | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Revenue from related party | 2.1 | 2.3 | $ 2.3 | |
Hawaiian Electric (parent only) | Maximum | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Obligation to contribute additional capital under the Capital Maintenance Agreement | $ 65.1 | |||
Reduction in obligation to contribute additional capital under the Capital Maintenance Agreement | 28.3 | |||
American Savings Bank (ASB) | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Cash dividends paid | $ 59 | $ 31 |
Bank segment (HEI only) - Capit
Bank segment (HEI only) - Capital And Ratio (Details) - American Savings Bank (ASB) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage, actual capital | $ 714,789 | $ 677,786 |
Tier 1 leverage, actual ratio | 0.0786 | 0.0838 |
Tier 1 leverage, required capital | $ 363,630 | $ 323,700 |
Tier 1 leverage, required ratio | 0.0400 | 0.0400 |
Tier 1 leverage, required to be well capitalized capital | $ 454,538 | $ 404,625 |
Tier 1 leverage, required to be well capitalized ratio | 0.0500 | 0.0500 |
Common equity tier 1, actual capital | $ 714,789 | |
Common equity tier 1, actual ratio | 13.29% | |
Common equity tier 1, required capital | $ 242,072 | |
Common equity tier 1, required ratio | 4.50% | |
Common equity tier 1, required to be well capitalized, Capital | $ 349,659 | |
Common equity tier 1, required to be well capitalized, Ratio | 6.50% | |
Tier 1 capital, actual capital | $ 714,789 | |
Tier 1 capital, actual ratio | 0.1329 | |
Tier 1 capital, required capital | $ 322,762 | |
Tier 1 capital, required ratio | 0.0600 | |
Tier 1 capital, Required to be well capitalized, Capital | $ 430,350 | |
Tier 1 capital, Required to be well capitalized, Ratio | 0.0800 | |
Total capital, Actual capital | $ 769,836 | |
Total capital, Actual ratio | 0.1431 | |
Total capital, Required capital | $ 430,350 | |
Total capital, Required ratio | 0.0800 | |
Total capital, Required to be well capitalized, Capital | $ 537,937 | |
Total capital, Required to be well capitalized, Ratio | 0.1000 |
Bank segment (HEI only) - Deriv
Bank segment (HEI only) - Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | $ (3,409) | $ 3,781 | $ 207 |
Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivatives | 638 | 4,536 | |
Liability derivatives | 11 | 500 | |
Interest rate lock commitments | |||
Derivative instrument | |||
Notional amount | 39,377 | 120,980 | |
Fair value | 638 | 4,536 | |
Interest rate lock commitments | Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivatives | 638 | 4,536 | |
Liability derivatives | 0 | 0 | |
Interest rate lock commitments | Not Designated as Hedging Instrument | Mortgage banking income | |||
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | (3,898) | 4,239 | 206 |
Forward commitments | |||
Derivative instrument | |||
Notional amount | 38,000 | 100,500 | |
Fair value | (11) | (500) | |
Forward commitments | Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivatives | 0 | 0 | |
Liability derivatives | 11 | 500 | |
Forward commitments | Not Designated as Hedging Instrument | Mortgage banking income | |||
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | $ 489 | $ (458) | $ 1 |
Bank segment (HEI only) - Off B
Bank segment (HEI only) - Off Balance Sheet Arrangements and Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
American Savings Bank (ASB) | ||||
Guarantees | ||||
Minimum reserve ratio | 1.36% | |||
FDIC insurance assessment | $ 3,200 | $ 2,300 | $ 1,200 | |
Reserve for Off-balance Sheet Activities | ||||
Guarantees | ||||
Unused commitments to extend credit | 1,911,729 | 1,963,802 | ||
Home equity line of credit | ||||
Guarantees | ||||
Unused commitments to extend credit | 1,181,496 | 1,248,773 | ||
Commercial real estate | ||||
Guarantees | ||||
Unused commitments to extend credit | 612,158 | 574,281 | ||
Consumer | ||||
Guarantees | ||||
Unused commitments to extend credit | 62,090 | 69,168 | ||
Residential 1-4 family | ||||
Guarantees | ||||
Unused commitments to extend credit | 44,262 | 57,862 | ||
Commercial and financial standby letters of credit | ||||
Guarantees | ||||
Unused commitments to extend credit | $ 11,723 | $ 13,718 |
Short-term borrowings (Details)
Short-term borrowings (Details) | May 14, 2021USD ($)extensionOptioninstitution | Jan. 29, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 29, 2020USD ($) | May 19, 2020USD ($) | Apr. 20, 2020USD ($) | Dec. 31, 2021USD ($)instrument | Dec. 31, 2020USD ($)instrument |
Short-term borrowings | ||||||||
Outstanding amount | $ 129,379,000 | $ 53,998,000 | $ 129,379,000 | |||||
Letter of Credit | Hamakua Energy | ||||||||
Short-term borrowings | ||||||||
Number of letters of credit entered into during the period | instrument | 5 | 3 | ||||||
Letters of credit outstanding | 6,000,000 | $ 10,000,000 | $ 6,000,000 | |||||
HEI Facility | ||||||||
Short-term borrowings | ||||||||
Commitment fee percentage | 0.20% | |||||||
HEI Facility | Maximum | ||||||||
Short-term borrowings | ||||||||
Capitalization ratio required to be maintained as per the debt covenant | 50.00% | |||||||
Hawaiian Electric Facility | ||||||||
Short-term borrowings | ||||||||
Credit agreement | $ 275,000,000 | |||||||
Number of extension options | extensionOption | 2 | |||||||
Extension period | 1 year | |||||||
Commitment fee percentage | 0.175% | |||||||
Hawaiian Electric Facility | LIBOR | ||||||||
Short-term borrowings | ||||||||
Line of credit facility basis point spread | 1.25% | |||||||
Commercial paper | ||||||||
Short-term borrowings | ||||||||
Outstanding amount | $ 65,000,000 | $ 54,000,000 | $ 65,000,000 | |||||
Weighted-average interest rate | 0.75% | 0.55% | 0.75% | |||||
Line of credit facility | Credit Facilities Effective July 2017 | ||||||||
Short-term borrowings | ||||||||
Number of financial institutions | institution | 9 | |||||||
Line of credit facility basis point spread | 1.375% | |||||||
Line of credit facility | HEI Facility | ||||||||
Short-term borrowings | ||||||||
Credit agreement | $ 175,000,000 | |||||||
Short-term debt, net | $ 0 | $ 0 | $ 0 | |||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Short-term borrowings | ||||||||
Weighted-average interest rate | 1.90% | 1.90% | ||||||
Short-term debt, net | $ 49,979,000 | $ 0 | $ 49,979,000 | |||||
Hawaiian Electric Company, Inc. and Subsidiaries | Credit Facilities Effective July 2017 | ||||||||
Short-term borrowings | ||||||||
Ratio of consolidated subsidiary debt to total consolidated capitalization required to be maintained as per the debt covenant | 65.00% | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | HEI Facility | ||||||||
Short-term borrowings | ||||||||
Credit agreement | $ 150,000,000 | |||||||
Ratio of consolidated capitalization required to be maintained as per the debt covenant | 35.00% | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Commercial paper | ||||||||
Short-term borrowings | ||||||||
Outstanding amount | $ 0 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Line of credit facility | Credit Facilities Effective July 2017 | ||||||||
Short-term borrowings | ||||||||
Number of financial institutions | institution | 9 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Line of credit facility | Hawaiian Electric Facility | ||||||||
Short-term borrowings | ||||||||
Credit agreement | $ 200,000,000 | |||||||
Short-term debt, net | 0 | $ 0 | $ 0 | |||||
Hawaiian Electric | 364-Day Revolver | Revolving Credit Facility | ||||||||
Short-term borrowings | ||||||||
Credit agreement | $ 75,000,000 | |||||||
Debt instrument term | 364 days | |||||||
Line of credit outstanding | $ 0 | |||||||
Hawaiian Electric | Term Loan | 364-Day Term Loan Credit Agreement | ||||||||
Short-term borrowings | ||||||||
Credit agreement | $ 50,000,000 | $ 65,000,000 | ||||||
Debt instrument term | 364 days | 364 days | ||||||
Payment of term laon | $ 50,000,000 | |||||||
Proceeds from private placement | $ 50,000,000 | |||||||
Extinguishment of debt amount | $ 15,000,000 |
Long-term debt - Schedule of Lo
Long-term debt - Schedule of Long-Term Debt and Maturities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Less unamortized debt issuance costs | $ (3,164,000) | $ (2,249,000) |
Long-term debt, net—other than bank | 2,321,937,000 | 2,119,129,000 |
Aggregate principal payments, fiscal year maturity: | ||
2022 | 223,000,000 | |
2023 | 163,000,000 | |
2024 | 6,000,000 | |
2025 | 104,000,000 | |
2026 | 131,000,000 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | 1,684,000,000 | 1,569,000,000 |
Aggregate principal payments, fiscal year maturity: | ||
2022 | 52,000,000 | |
2023 | 100,000,000 | |
2024 | 0 | |
2025 | 47,000,000 | |
2026 | 125,000,000 | |
Special purpose revenue bonds issued on behalf of electric utility subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term debt, net—other than bank | 1,676,402,000 | 1,561,302,000 |
Senior notes | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | 1,142,000,000 | 1,027,000,000 |
Senior notes | HEI 5.67% senior notes, due 2021 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 0 | 50,000,000 |
Debt instrument, stated interest rate | 5.67% | |
Senior notes | HEI 3.99% senior notes, due 2023 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 50,000,000 | 50,000,000 |
Debt instrument, stated interest rate | 3.99% | |
Senior notes | HEI 4.58% senior notes, due 2025 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 50,000,000 | 50,000,000 |
Debt instrument, stated interest rate | 4.58% | |
Senior notes | HEI 4.72% senior notes, due 2028 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 100,000,000 | 100,000,000 |
Debt instrument, stated interest rate | 4.72% | |
Senior notes | HEI 2.82% senior notes, due 2028 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 24,000,000 | 0 |
Debt instrument, stated interest rate | 2.82% | |
Senior notes | HEI 2.98% senior notes, due 2030 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 50,000,000 | 50,000,000 |
Debt instrument, stated interest rate | 2.98% | |
Senior notes | HEI 3.15% senior notes, due 2031 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 51,000,000 | 0 |
Debt instrument, stated interest rate | 3.15% | |
Senior notes | HEI 2.48% senior notes, due 2028 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 30,000,000 | 0 |
Debt instrument, stated interest rate | 2.48% | |
Senior notes | HEI 2.78% senior notes, due 2031 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 25,000,000 | 0 |
Debt instrument, stated interest rate | 2.78% | |
Senior notes | HEI 3.74% senior notes, due 2051 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 20,000,000 | 0 |
Debt instrument, stated interest rate | 3.74% | |
Senior notes | Hāmākua Energy 4.02% non-recourse notes, due 2030 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 52,166,000 | 56,030,000 |
Debt instrument, stated interest rate | 4.02% | |
Term Loan | HEI 2.99% term loan, due 2022 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 150,000,000 | 150,000,000 |
Debt instrument, stated interest rate | 2.99% | |
Term Loan | Mauō 4.90% non-recourse loan, due 2034 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 12,686,000 | 0 |
Debt instrument, stated interest rate | 4.90% | |
Term Loan | Ka`ie`ie Waho 2.79% non-recourse loan, due 2031 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 12,145,000 | 13,000,000 |
Debt instrument, stated interest rate | 2.79% | |
Unsecured Debt | Mauo LIBOR + 1.375% loan, due 2023 | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 21,702,000 | $ 41,046,000 |
Maximum aggregate principal amount | 50,500,000 | |
Paydown of loan balance, maximum balance | $ 7,000,000 | |
Unsecured Debt | Mauo LIBOR + 1.375% loan, due 2023 | LIBOR | ||
Debt Instrument [Line Items] | ||
Line of credit facility basis point spread | 1.375% |
Long-term debt - Narrative (Det
Long-term debt - Narrative (Details) | Dec. 29, 2021USD ($) | Sep. 03, 2021USD ($)project | Nov. 30, 2022USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 29, 2021USD ($)tranche |
Debt Instrument [Line Items] | ||||||||
Proceeds from issuance of long-term debt | $ 285,886,000 | $ 415,997,000 | $ 289,349,000 | |||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from issuance of long-term debt | $ 115,000,000 | $ 255,000,000 | $ 280,000,000 | |||||
Equity capitalization ratio | 58.00% | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
Refinancing portion of debt | $ 150,000,000 | |||||||
Senior notes | HEI Series 2020A | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 125,000,000 | |||||||
Number of tranches | tranche | 2 | |||||||
Proceeds from issuance of long-term debt | $ 75,000,000 | |||||||
Proceeds from debt on delayed basis | $ 50,000,000 | |||||||
Senior notes | HEI Series 2020A | Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
Refinancing portion of debt | $ 50,000,000 | |||||||
Term loan | Mauo Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 24,000,000 | |||||||
Aggregate amount of debt | $ 13,000,000 | |||||||
Number of solar-battery projects | project | 5 | |||||||
Number of solar-battery projects collateralized | project | 3 | |||||||
Fixed coupon interest rate | 4.90% | |||||||
Term loan | Mauo Credit Agreement | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility basis point spread | 1.70% |
Long-term debt - Note Purchase
Long-term debt - Note Purchase Agreements (Details) - Senior notes | Dec. 31, 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 - Addition
Shareholders' equity - Additional Information (Details) shares in Millions | Dec. 31, 2021shares |
Equity [Abstract] | |
Common stock reserved for future issuance (in shares) | 16.4 |
Shareholders' equity - Accumula
Shareholders' equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | $ 2,337,502 | $ 2,280,260 | $ 2,162,280 |
Current period other comprehensive income (loss) and reclassifications, net of taxes | (51,269) | 18,775 | 30,571 |
Ending balance | 2,390,884 | 2,337,502 | 2,280,260 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | 2,141,918 | 2,047,352 | 1,957,641 |
Current period other comprehensive income (loss) and reclassifications, net of taxes | (361) | (1,640) | (1,378) |
Ending balance | 2,261,899 | 2,141,918 | 2,047,352 |
AOCI | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (1,264) | (20,039) | (50,610) |
Current period other comprehensive income (loss) and reclassifications, net of taxes | (51,269) | 18,775 | 30,571 |
Ending balance | (52,533) | (1,264) | (20,039) |
AOCI | Hawaiian Electric Company, Inc. and Subsidiaries | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (2,919) | (1,279) | 99 |
Current period other comprehensive income (loss) and reclassifications, net of taxes | (361) | (1,640) | (1,378) |
Ending balance | (3,280) | (2,919) | (1,279) |
Net unrealized gains (losses) on securities | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | 19,986 | 2,481 | (24,423) |
Current period other comprehensive income (loss) and reclassifications, net of taxes | (52,023) | 17,505 | 26,904 |
Ending balance | (32,037) | 19,986 | 2,481 |
Unrealized gains (losses) on derivatives | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (3,363) | (1,613) | (436) |
Current period other comprehensive income (loss) and reclassifications, net of taxes | (275) | (1,750) | (1,177) |
Ending balance | (3,638) | (3,363) | (1,613) |
Retirement benefit plans | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (17,887) | (20,907) | (25,751) |
Current period other comprehensive income (loss) and reclassifications, net of taxes | 1,029 | 3,020 | 4,844 |
Ending balance | (16,858) | (17,887) | (20,907) |
Retirement benefit plans | Hawaiian Electric Company, Inc. and Subsidiaries | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (2,919) | (1,279) | 99 |
Current period other comprehensive income (loss) and reclassifications, net of taxes | (361) | (1,640) | (1,378) |
Ending balance | $ (3,280) | $ (2,919) | $ (1,279) |
Shareholders' equity - Reclassi
Shareholders' equity - Reclassification Out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Gain on sale of investment securities, net | $ (528) | $ (9,275) | $ (653) |
Interest expense | 94,363 | 88,694 | 90,899 |
Net income (loss) | (248,056) | (199,714) | (219,772) |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | (179,637) | (171,335) | (158,835) |
Amount reclassified from AOCI | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | (152,442) | 61,911 | (6,548) |
Amount reclassified from AOCI | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | (151,884) | 61,410 | (6,627) |
Amount reclassified from AOCI | Net unrealized gains (losses) on securities | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Gain on sale of investment securities, net | (387) | (1,638) | (478) |
Amount reclassified from AOCI | Net realized losses on derivatives qualifying as cash flow hedges | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | 37 | 0 | 0 |
Amount reclassified from AOCI | Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | 19,253 | 23,689 | 10,107 |
Amount reclassified from AOCI | Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | 19,461 | 21,550 | 9,550 |
Amount reclassified from AOCI | Impact of D&Os of the PUC included in regulatory assets | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | (171,345) | 39,860 | (16,177) |
Amount reclassified from AOCI | Impact of D&Os of the PUC included in regulatory assets | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | $ (171,345) | $ 39,860 | $ (16,177) |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Aug. 31, 2019USD ($)ft² | Jun. 30, 2021MW | Mar. 31, 2021MW | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)ft² | Dec. 31, 2019USD ($) | Aug. 31, 2021USD ($) | |
Lessee, Lease, Description [Line Items] | |||||||
Renewal option (up to) | 10 years | ||||||
Right-of-use assets obtained in exchange for operating lease obligations (investing) | $ 44,000 | $ 26,000 | $ 7,000 | ||||
Operating lease right-of-use-assets | 122,416 | 153,069 | |||||
Operating lease liabilities | $ 136,760 | $ 160,432 | |||||
Lease payments basis reduction for impact of collateral | 0.25% | ||||||
Area of real estate property (in square feet) | ft² | 64,000 | ||||||
Lessor, operating sublease, renewal lease term | 2 years | ||||||
Lessor, operating sublease, estimated base rent revenue | $ 8,300 | ||||||
Operating lease renewal term (up to) | 5 years | ||||||
Operating lease term | 5 years | ||||||
Lease not yet commenced, annual rent expense | $ 6,200 | ||||||
Lease not yet commenced liability | $ 32,000 | ||||||
Puna Geothermal Venture Power Purchase Agreement | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Firm capacity volume | MW | 23.9 | 13 | |||||
Operating lease right-of-use-assets | $ 21,000 | ||||||
Operating lease liabilities | $ 21,000 | ||||||
FHLB Des Moines | Maximum | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Long-term debt term | 30 years | ||||||
Honolulu | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Renewal option (up to) | 10 years | ||||||
Operating lease liabilities | $ 21,000 | ||||||
Area of real estate property (in square feet) | ft² | 195,000 | ||||||
Term of contract | 12 years | ||||||
Expected reimbursements for improvements | $ 5,700 | $ 2,600 | |||||
Lessor, operating sublease, lease term | 6 years 6 months | ||||||
Honolulu | Office Space Lease, Phase 1, Commencement January 2020 | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Rent expense | $ 1,900 | ||||||
Expected reimbursements for improvements | 5,000 | ||||||
Honolulu | Office Space Lease, Phase 2, Commencement January 2021 | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Operating lease liabilities | 19,000 | ||||||
Rent expense | 1,700 | ||||||
Expected reimbursements for improvements | $ 4,600 |
Leases - Amounts Related to Lea
Leases - Amounts Related to Lease Cost and Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 80,254 | $ 74,520 |
Variable lease cost | 271,832 | 229,938 |
Sublease income | (2,515) | |
Total lease cost | 349,571 | 304,458 |
Other information | ||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 73,375 | $ 71,584 |
Weighted-average remaining lease term—operating leases (in years) | 6 years 1 month 6 days | 4 years 4 months 24 days |
Weighted-average discount rate—operating leases | 3.18% | 3.61% |
Other leases | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 14,184 | $ 11,201 |
Variable lease cost | 14,360 | 12,765 |
Sublease income | (2,515) | |
Total lease cost | 26,029 | 23,966 |
Other information | ||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 11,239 | $ 10,783 |
Weighted-average remaining lease term—operating leases (in years) | 9 years 1 month 6 days | 8 years 10 months 24 days |
Weighted-average discount rate—operating leases | 2.84% | 2.87% |
PPAs classified as leases | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 66,070 | $ 63,319 |
Variable lease cost | 257,472 | 217,173 |
Sublease income | 0 | |
Total lease cost | 323,542 | 280,492 |
Other information | ||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 62,136 | $ 60,801 |
Weighted-average remaining lease term—operating leases (in years) | 2 years 6 months | 1 year 9 months 18 days |
Weighted-average discount rate—operating leases | 3.63% | 4.08% |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 74,648 | $ 69,341 |
Variable lease cost | 269,058 | 227,015 |
Sublease income | (2,515) | |
Total lease cost | 341,191 | 296,356 |
Other information | ||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 68,304 | $ 67,024 |
Weighted-average remaining lease term—operating leases (in years) | 5 years 10 months 24 days | 3 years 9 months 18 days |
Weighted-average discount rate—operating leases | 3.31% | 3.84% |
Hawaiian Electric Company, Inc. and Subsidiaries | Other leases | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 8,578 | $ 6,022 |
Variable lease cost | 11,586 | 9,842 |
Sublease income | (2,515) | |
Total lease cost | 17,649 | 15,864 |
Other information | ||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 6,168 | $ 6,223 |
Weighted-average remaining lease term—operating leases (in years) | 10 years | 10 years 1 month 6 days |
Weighted-average discount rate—operating leases | 2.98% | 3.20% |
Hawaiian Electric Company, Inc. and Subsidiaries | PPAs classified as leases | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 66,070 | $ 63,319 |
Variable lease cost | 257,472 | 217,173 |
Sublease income | 0 | |
Total lease cost | 323,542 | 280,492 |
Other information | ||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 62,136 | $ 60,801 |
Weighted-average remaining lease term—operating leases (in years) | 2 years 6 months | 1 year 9 months 18 days |
Weighted-average discount rate—operating leases | 3.63% | 4.08% |
Leases - Maturity of Operating
Leases - Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
2022 | $ 57,000 | |
2023 | 17,000 | |
2024 | 15,000 | |
2025 | 11,000 | |
2026 | 10,000 | |
Thereafter | 40,000 | |
Total lease payments | 150,000 | |
Less: Imputed interest | (13,000) | |
Total present value of lease payments | 136,760 | $ 160,432 |
Operating lease, not in service, annual capacity payment | 3,800 | |
Other leases | ||
Lessee, Lease, Description [Line Items] | ||
2022 | 11,000 | |
2023 | 13,000 | |
2024 | 11,000 | |
2025 | 7,000 | |
2026 | 7,000 | |
Thereafter | 36,000 | |
Total lease payments | 85,000 | |
Less: Imputed interest | (11,000) | |
Total present value of lease payments | 74,000 | |
PPAs classified as leases | ||
Lessee, Lease, Description [Line Items] | ||
2022 | 46,000 | |
2023 | 4,000 | |
2024 | 4,000 | |
2025 | 4,000 | |
2026 | 3,000 | |
Thereafter | 4,000 | |
Total lease payments | 65,000 | |
Less: Imputed interest | (2,000) | |
Total present value of lease payments | 63,000 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Lessee, Lease, Description [Line Items] | ||
2022 | 52,000 | |
2023 | 12,000 | |
2024 | 11,000 | |
2025 | 9,000 | |
2026 | 8,000 | |
Thereafter | 34,000 | |
Total lease payments | 126,000 | |
Less: Imputed interest | (11,000) | |
Total present value of lease payments | 115,000 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Other leases | ||
Lessee, Lease, Description [Line Items] | ||
2022 | 6,000 | |
2023 | 8,000 | |
2024 | 7,000 | |
2025 | 5,000 | |
2026 | 5,000 | |
Thereafter | 30,000 | |
Total lease payments | 61,000 | |
Less: Imputed interest | (9,000) | |
Total present value of lease payments | 52,000 | |
Hawaiian Electric Company, Inc. and Subsidiaries | PPAs classified as leases | ||
Lessee, Lease, Description [Line Items] | ||
2022 | 46,000 | |
2023 | 4,000 | |
2024 | 4,000 | |
2025 | 4,000 | |
2026 | 3,000 | |
Thereafter | 4,000 | |
Total lease payments | 65,000 | |
Less: Imputed interest | (2,000) | |
Total present value of lease payments | $ 63,000 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
General payment period | 30 days | ||
Revenues from contracts with customers | $ 2,521,425 | $ 2,269,451 | |
Revenues from other sources | 328,954 | 310,324 | |
Total revenues | 2,850,379 | 2,579,775 | $ 2,873,948 |
Services/goods transferred at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 46,658 | 38,887 | |
Services/goods transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 2,474,767 | 2,230,564 | |
Electric energy sales - residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 830,653 | 766,609 | |
Electric energy sales - commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 791,424 | 703,516 | |
Electric energy sales - large light and power | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 837,834 | 751,464 | |
Electric energy sales - other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 10,770 | 8,054 | |
Bank fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 46,658 | 38,887 | |
Other sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 4,086 | 921 | |
Regulatory revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 40,069 | 11,869 | |
Bank interest and dividend income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 242,266 | 244,663 | |
Other bank noninterest income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 17,474 | 29,961 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 29,145 | 23,831 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Disaggregation of Revenue [Line Items] | |||
Revenue taxes, other than income tax expense | 226,000 | 202,000 | 226,000 |
Revenue taxes accrued | 128,000 | 111,000 | |
Electric utility | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 2,470,681 | 2,229,643 | |
Revenues from other sources | 68,955 | 35,677 | |
Total revenues | 2,539,636 | 2,265,320 | 2,545,942 |
Electric utility | Services/goods transferred at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Electric utility | Services/goods transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 2,470,681 | 2,229,643 | |
Electric utility | Electric energy sales - residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 830,653 | 766,609 | |
Electric utility | Electric energy sales - commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 791,424 | 703,516 | |
Electric utility | Electric energy sales - large light and power | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 837,834 | 751,464 | |
Electric utility | Electric energy sales - other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 10,770 | 8,054 | |
Electric utility | Bank fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Electric utility | Other sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Electric utility | Regulatory revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 40,069 | 11,869 | |
Electric utility | Bank interest and dividend income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 0 | 0 | |
Electric utility | Other bank noninterest income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 0 | 0 | |
Electric utility | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 28,886 | 23,808 | |
Bank | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 46,658 | 38,887 | |
Revenues from other sources | 259,740 | 274,624 | |
Total revenues | 306,398 | 313,511 | 327,917 |
Bank | Services/goods transferred at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 46,658 | 38,887 | |
Bank | Services/goods transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Bank | Electric energy sales - residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Bank | Electric energy sales - commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Bank | Electric energy sales - large light and power | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Bank | Electric energy sales - other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Bank | Bank fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 46,658 | 38,887 | |
Bank | Other sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Bank | Regulatory revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 0 | 0 | |
Bank | Bank interest and dividend income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 242,266 | 244,663 | |
Bank | Other bank noninterest income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 17,474 | 29,961 | |
Bank | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 0 | 0 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 4,086 | 921 | |
Revenues from other sources | 259 | 23 | |
Total revenues | 4,345 | 944 | $ 89 |
Other | Services/goods transferred at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Other | Services/goods transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 4,086 | 921 | |
Other | Electric energy sales - residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Other | Electric energy sales - commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Other | Electric energy sales - large light and power | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Other | Electric energy sales - other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Other | Bank fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Other | Other sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 4,086 | 921 | |
Other | Regulatory revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 0 | 0 | |
Other | Bank interest and dividend income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 0 | 0 | |
Other | Other bank noninterest income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | 0 | 0 | |
Other | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from other sources | $ 259 | $ 23 |
Retirement benefits - Additiona
Retirement benefits - Additional Information (Details) - USD ($) $ in Millions | Dec. 03, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Vested percentage of interest of each affected participant after participating employer terminates participation | 100.00% | |||
Number of years for which regulatory asset/liability for each utility will be amortized, beginning with respective utility's next rate case | 5 years | |||
Executive life and nonqualified pension plan expenses | $ 1.2 | $ 1.1 | ||
Regulatory asset charges pretax | $ (230.8) | 53.7 | ||
Fair value of plan assets, valuation difference amortized in first year | 0.00% | |||
Fair value of plan assets, valuation difference amortized in two to five years | 25.00% | |||
Number of past years for adding or subtracting the unamortized differences from fair value | 4 years | |||
Percentage of range around fair value | 15.00% | |||
Expected cash funding for qualified defined benefit plans | ||||
Defined contribution plan, expenses recognized | $ 6 | 7 | $ 7 | |
Cash contributions by the employer to defined contribution plan | 6 | 7 | 7 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Expected cash funding for qualified defined benefit plans | ||||
Defined contribution plan, expenses recognized | 3 | 3 | 3 | |
Cash contributions by the employer to defined contribution plan | $ 3 | 3 | 3 | |
Employer contribution, percent of annual compensation | 10.00% | |||
Pension benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected rate of return on plan assets | 7.25% | |||
Assumed discount rate, active manager premium | 0.20% | |||
Actual net return on plan assets | 13.20% | |||
Pension expense | $ 47 | 59 | 59 | |
Expected cash funding for qualified defined benefit plans | ||||
Estimate of contributions to postretirement benefit plans in next fiscal year | 41 | |||
2022 | 102 | |||
2023 | 105 | |||
2024 | 108 | |||
2025 | 112 | |||
2026 | 116 | |||
2027 through 2031 | $ 632 | |||
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual net return on plan assets | 14.20% | |||
Pension expense | $ 47 | $ 55 | 57 | |
Expected cash funding for qualified defined benefit plans | ||||
Estimate of contributions to postretirement benefit plans in next fiscal year | 41 | |||
2022 | 93 | |||
2023 | 96 | |||
2024 | 99 | |||
2025 | 102 | |||
2026 | 106 | |||
2027 through 2031 | $ 580 | |||
Pension benefits | American Savings Bank (ASB) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected rate of return on plan assets | 3.24% | |||
Other benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assumed health care trend rate for medical in next fiscal year | 6.50% | 6.75% | ||
Assumed health care trend rate for grading down plan in 12 fiscal years thereafter | 5.00% | |||
Assumed health care trend rate for dental in next fiscal year | 5.00% | 5.00% | ||
Assumed health care trend rate for vision in next fiscal year | 4.00% | 4.00% | ||
Assumed health care trend rate for grading down in 2028 and thereafter | 5.00% | |||
Postretirement benefits other than pension expense | $ (0.1) | $ (0.1) | (0.1) | |
Expected cash funding for qualified defined benefit plans | ||||
Estimate of contributions to postretirement benefit plans in next fiscal year | 0 | |||
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Postretirement benefits other than pension expense | (0.2) | $ (0.2) | $ (0.3) | |
Expected cash funding for qualified defined benefit plans | ||||
Estimate of contributions to postretirement benefit plans in next fiscal year | $ 0 | |||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Threshold percentage around fair value | 85.00% | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Threshold percentage around fair value | 115.00% |
Retirement benefits - Changes i
Retirement benefits - Changes in Projected Benefit Obligations and Fair Value of Plan Assets and Amounts Recognized in OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined benefit pension and other postretirement benefit plans liability | $ (321,780) | $ (530,532) | |
Pension benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, balance at the beginning of the period | 2,624,530 | 2,278,283 | |
Service cost | 81,432 | 73,387 | $ 62,135 |
Interest cost | 75,361 | 81,335 | 84,267 |
Actuarial (gains) losses | (43,300) | 275,973 | |
Participants contributions | 0 | 0 | |
Benefits paid and expenses | (93,384) | (84,448) | |
Benefit obligation, balance at the end of the period | 2,644,639 | 2,624,530 | 2,278,283 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, balance at the beginning of the period | 2,089,491 | 1,799,200 | |
Actual return on plan assets | 271,443 | 302,566 | |
Employer contributions | 51,777 | 70,844 | |
Participants contributions | 0 | 0 | |
Benefits paid and expenses | (91,966) | (83,119) | |
Fair value of plan assets, balance at the end of the period | 2,320,745 | 2,089,491 | 1,799,200 |
Accrued benefit asset (liability), balance | (323,894) | (535,039) | |
Other assets | 23,675 | 25,851 | |
Defined benefit pension and other postretirement benefit plans liability | (347,569) | (560,890) | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Roll Forward] | |||
AOCI debit/(credit), balance at beginning of the period (excluding impact of PUC D&Os) | 557,564 | 503,821 | |
Recognized during year – prior service credit (cost) | 0 | (8) | |
Recognized during year – net actuarial loss | (27,245) | (33,456) | |
Occurring during year – net actuarial loss (gain) | (182,520) | 87,207 | |
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 347,799 | 557,564 | 503,821 |
Cumulative impact of PUC D&Os | (324,162) | (534,594) | |
AOCI debit/(credit), balance at end of the period | 23,637 | 22,970 | |
Net actuarial loss (gain) | 347,799 | 557,564 | |
Prior service gain | 0 | 0 | |
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 347,799 | 557,564 | 503,821 |
Income taxes (benefits) | (6,199) | (5,988) | |
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | 17,438 | 16,982 | |
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, balance at the beginning of the period | 2,440,758 | 2,110,904 | |
Service cost | 79,463 | 71,604 | 60,461 |
Interest cost | 70,235 | 75,484 | 77,851 |
Actuarial (gains) losses | (39,755) | 260,102 | |
Participants contributions | 0 | 0 | |
Benefits paid and expenses | (85,425) | (77,336) | |
Transfers | (332) | 0 | |
Benefit obligation, balance at the end of the period | 2,464,944 | 2,440,758 | 2,110,904 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, balance at the beginning of the period | 1,909,730 | 1,640,417 | |
Actual return on plan assets | 266,922 | 276,453 | |
Employer contributions | 51,079 | 69,720 | |
Participants contributions | 0 | 0 | |
Benefits paid and expenses | (84,852) | (76,860) | |
Other | (262) | 0 | |
Fair value of plan assets, balance at the end of the period | 2,142,617 | 1,909,730 | 1,640,417 |
Accrued benefit asset (liability), balance | (322,327) | (531,028) | |
Other assets | 0 | 0 | |
Other liabilities (short-term) | (547) | (535) | |
Defined benefit pension and other postretirement benefit plans liability | (321,780) | (530,493) | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Roll Forward] | |||
AOCI debit/(credit), balance at beginning of the period (excluding impact of PUC D&Os) | 538,521 | 478,078 | |
Recognized during year – prior service credit (cost) | 0 | (9) | |
Recognized during year – net actuarial loss | (27,534) | (30,566) | |
Occurring during year – net actuarial loss (gain) | (181,342) | 91,018 | |
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 329,645 | 538,521 | 478,078 |
Cumulative impact of PUC D&Os | (324,162) | (534,594) | |
AOCI debit/(credit), balance at end of the period | 5,483 | 3,927 | |
Net actuarial loss (gain) | 329,645 | 538,521 | |
Prior service gain | 0 | 0 | |
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 329,645 | 538,521 | 478,078 |
Income taxes (benefits) | (1,412) | (1,011) | |
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | 4,071 | 2,916 | |
Other benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, balance at the beginning of the period | 226,421 | 215,639 | |
Service cost | 2,827 | 2,537 | 2,209 |
Interest cost | 6,122 | 7,407 | 8,004 |
Actuarial (gains) losses | (8,527) | 9,785 | |
Participants contributions | 2,943 | 2,768 | |
Benefits paid and expenses | (11,635) | (11,715) | |
Benefit obligation, balance at the end of the period | 218,151 | 226,421 | 215,639 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, balance at the beginning of the period | 219,873 | 200,831 | |
Actual return on plan assets | 28,130 | 27,678 | |
Employer contributions | 0 | 0 | |
Participants contributions | 2,943 | 2,768 | |
Benefits paid and expenses | (11,635) | (11,404) | |
Fair value of plan assets, balance at the end of the period | 239,311 | 219,873 | 200,831 |
Accrued benefit asset (liability), balance | 21,160 | (6,548) | |
Other assets | 21,663 | 0 | |
Defined benefit pension and other postretirement benefit plans liability | (503) | (6,548) | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Roll Forward] | |||
AOCI debit/(credit), balance at beginning of the period (excluding impact of PUC D&Os) | 2,395 | 6,610 | |
Recognized during year – prior service credit (cost) | 1,533 | 1,761 | |
Recognized during year – net actuarial loss | (203) | (208) | |
Occurring during year – net actuarial loss (gain) | (23,700) | (5,768) | |
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | (19,975) | 2,395 | 6,610 |
Cumulative impact of PUC D&Os | 19,166 | (1,177) | |
AOCI debit/(credit), balance at end of the period | (809) | 1,218 | |
Net actuarial loss (gain) | (18,172) | 5,731 | |
Prior service gain | (1,803) | (3,336) | |
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | (19,975) | 2,395 | 6,610 |
Income taxes (benefits) | 209 | (313) | |
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | (600) | 905 | |
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, balance at the beginning of the period | 217,074 | 207,073 | |
Service cost | 2,802 | 2,515 | 2,191 |
Interest cost | 5,875 | 7,103 | 7,673 |
Actuarial (gains) losses | (7,779) | 9,151 | |
Participants contributions | 2,886 | 2,717 | |
Benefits paid and expenses | (11,388) | (11,485) | |
Transfers | 0 | 0 | |
Benefit obligation, balance at the end of the period | 209,470 | 217,074 | 207,073 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, balance at the beginning of the period | 216,315 | 197,564 | |
Actual return on plan assets | 27,712 | 27,207 | |
Employer contributions | 0 | 0 | |
Participants contributions | 2,886 | 2,717 | |
Benefits paid and expenses | (11,388) | (11,173) | |
Other | 0 | 0 | |
Fair value of plan assets, balance at the end of the period | 235,525 | 216,315 | 197,564 |
Accrued benefit asset (liability), balance | 26,055 | (759) | |
Other assets | 26,055 | 0 | |
Other liabilities (short-term) | 0 | (720) | |
Defined benefit pension and other postretirement benefit plans liability | 0 | (39) | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Roll Forward] | |||
AOCI debit/(credit), balance at beginning of the period (excluding impact of PUC D&Os) | 1,181 | 5,730 | |
Recognized during year – prior service credit (cost) | 1,530 | 1,758 | |
Recognized during year – net actuarial loss | (206) | (207) | |
Occurring during year – net actuarial loss (gain) | (22,736) | (6,100) | |
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | (20,231) | 1,181 | 5,730 |
Cumulative impact of PUC D&Os | 19,166 | (1,177) | |
AOCI debit/(credit), balance at end of the period | (1,065) | 4 | |
Net actuarial loss (gain) | (18,434) | 4,508 | |
Prior service gain | (1,797) | (3,327) | |
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | (20,231) | 1,181 | $ 5,730 |
Income taxes (benefits) | 274 | (1) | |
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | $ (791) | $ 3 |
Retirement benefits - Asset All
Retirement benefits - Asset Allocation Target and Actual Percentage (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. equity securities | Minimum | ||
Asset category, Target | ||
Target | 60.00% | |
U.S. equity securities | Maximum | ||
Asset category, Target | ||
Target | 80.00% | |
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 100.00% | 100.00% |
Asset category, Target | ||
Target | 100.00% | |
Pension benefits | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 59.00% | 58.00% |
Asset category, Target | ||
Target | 52.00% | |
Pension benefits | U.S. equity securities | Minimum | ||
Asset category, Target | ||
Target | 45.00% | |
Pension benefits | U.S. equity securities | Maximum | ||
Asset category, Target | ||
Target | 65.00% | |
Pension benefits | Non-U.S equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 13.00% | 14.00% |
Asset category, Target | ||
Target | 15.00% | |
Pension benefits | Non-U.S equity securities | Minimum | ||
Asset category, Target | ||
Target | 5.00% | |
Pension benefits | Non-U.S equity securities | Maximum | ||
Asset category, Target | ||
Target | 25.00% | |
Pension benefits | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 27.00% | 28.00% |
Asset category, Target | ||
Target | 30.00% | |
Pension benefits | Fixed income securities | Minimum | ||
Asset category, Target | ||
Target | 20.00% | |
Pension benefits | Fixed income securities | Maximum | ||
Asset category, Target | ||
Target | 40.00% | |
Pension benefits | Private equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 1.00% | 0.00% |
Asset category, Target | ||
Target | 3.00% | |
Pension benefits | Private equity | Minimum | ||
Asset category, Target | ||
Target | 0.00% | |
Pension benefits | Private equity | Maximum | ||
Asset category, Target | ||
Target | 5.00% | |
Other benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 100.00% | 100.00% |
Asset category, Target | ||
Target | 100.00% | |
Other benefits | U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 58.00% | 57.00% |
Asset category, Target | ||
Target | 52.00% | |
Other benefits | U.S. equity securities | Minimum | ||
Asset category, Target | ||
Target | 45.00% | |
Other benefits | U.S. equity securities | Maximum | ||
Asset category, Target | ||
Target | 65.00% | |
Other benefits | Non-U.S equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 15.00% | 16.00% |
Asset category, Target | ||
Target | 15.00% | |
Other benefits | Non-U.S equity securities | Minimum | ||
Asset category, Target | ||
Target | 5.00% | |
Other benefits | Non-U.S equity securities | Maximum | ||
Asset category, Target | ||
Target | 25.00% | |
Other benefits | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 27.00% | 27.00% |
Asset category, Target | ||
Target | 30.00% | |
Other benefits | Fixed income securities | Minimum | ||
Asset category, Target | ||
Target | 20.00% | |
Other benefits | Fixed income securities | Maximum | ||
Asset category, Target | ||
Target | 40.00% | |
Other benefits | Private equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation | 0.00% | 0.00% |
Asset category, Target | ||
Target | 3.00% | |
Other benefits | Private equity | Minimum | ||
Asset category, Target | ||
Target | 0.00% | |
Other benefits | Private equity | Maximum | ||
Asset category, Target | ||
Target | 5.00% |
Retirement benefits - Assets He
Retirement benefits - Assets Held In Retirement Benefit Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 2,320,745 | $ 2,089,491 | $ 1,799,200 |
Other benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 239,311 | 219,873 | $ 200,831 |
Fair value measurements on a recurring basis | Pension benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 2,321,000 | 2,089,000 | |
Fair value measurements on a recurring basis | Pension benefits | Total, excluding cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 2,318,000 | 2,085,000 | |
Fair value measurements on a recurring basis | Pension benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 1,546,000 | $ 1,376,000 | |
Fair value measurements on a recurring basis | Pension benefits | Non-U.S equity securities | |||
Fair value measurements on a recurring basis | |||
Redemption frequency, daily | 61.00% | 62.00% | |
Redemption frequency, monthly | 39.00% | 38.00% | |
Fair value measurements on a recurring basis | Pension benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 700,000 | $ 641,000 | |
Fair value measurements on a recurring basis | Pension benefits | Cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 3,000 | 4,000 | |
Fair value measurements on a recurring basis | Other benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 239,000 | 220,000 | |
Fair value measurements on a recurring basis | Other benefits | Total, excluding cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 239,000 | 220,000 | |
Fair value measurements on a recurring basis | Other benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 173,000 | $ 158,000 | |
Fair value measurements on a recurring basis | Other benefits | Non-U.S equity securities | |||
Fair value measurements on a recurring basis | |||
Redemption frequency, daily | 57.00% | 58.00% | |
Redemption frequency, monthly | 43.00% | 42.00% | |
Fair value measurements on a recurring basis | Other benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 63,000 | $ 58,000 | |
Fair value measurements on a recurring basis | Other benefits | Cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Fair Value, Inputs, Level 1, 2 and 3 | Pension benefits | U.S. equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 432,000 | 368,000 | |
Fair value measurements on a recurring basis | Fair Value, Inputs, Level 1, 2 and 3 | Pension benefits | Non-U.S equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 188,000 | 172,000 | |
Fair value measurements on a recurring basis | Fair Value, Inputs, Level 1, 2 and 3 | Pension benefits | U.S. equity index and exchange-traded funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 830,000 | 734,000 | |
Fair value measurements on a recurring basis | Fair Value, Inputs, Level 1, 2 and 3 | Pension benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 393,000 | 363,000 | |
Fair value measurements on a recurring basis | Fair Value, Inputs, Level 1, 2 and 3 | Other benefits | U.S. equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 53,000 | 46,000 | |
Fair value measurements on a recurring basis | Fair Value, Inputs, Level 1, 2 and 3 | Other benefits | Non-U.S equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 24,000 | 22,000 | |
Fair value measurements on a recurring basis | Fair Value, Inputs, Level 1, 2 and 3 | Other benefits | U.S. equity index and exchange-traded funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 84,000 | 77,000 | |
Fair value measurements on a recurring basis | Fair Value, Inputs, Level 1, 2 and 3 | Other benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 58,000 | 53,000 | |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Pension benefits | Total, excluding cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 1,610,000 | 1,404,000 | |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Pension benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 1,449,000 | 1,274,000 | |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Pension benefits | U.S. equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 431,000 | 368,000 | |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Pension benefits | Non-U.S equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 188,000 | 172,000 | |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Pension benefits | U.S. equity index and exchange-traded funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 830,000 | 734,000 | |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Pension benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 146,000 | 105,000 | |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Pension benefits | Private equity at NAV | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | ||
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Pension benefits | Cash equivalents, fund and at NAV | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 15,000 | 25,000 | |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Other benefits | Total, excluding cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 220,000 | 199,000 | |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Other benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 161,000 | 145,000 | |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Other benefits | U.S. equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 53,000 | 46,000 | |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Other benefits | Non-U.S equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 24,000 | 22,000 | |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Other benefits | U.S. equity index and exchange-traded funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 84,000 | 77,000 | |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Other benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 56,000 | 51,000 | |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Other benefits | Private equity at NAV | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | ||
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Other benefits | Cash equivalents, fund and at NAV | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 3,000 | 3,000 | |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Pension benefits | Total, excluding cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 248,000 | 258,000 | |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Pension benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 1,000 | 0 | |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Pension benefits | U.S. equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 1,000 | 0 | |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Pension benefits | Non-U.S equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Pension benefits | U.S. equity index and exchange-traded funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Pension benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 247,000 | 258,000 | |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Pension benefits | Private equity at NAV | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | ||
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Other benefits | Total, excluding cash, receivables and payables, net | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 2,000 | 2,000 | |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Other benefits | Equity investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Other benefits | U.S. equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Other benefits | Non-U.S equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Other benefits | U.S. equity index and exchange-traded funds | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Other benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 2,000 | 2,000 | |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Other benefits | Private equity at NAV | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | ||
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 460,000 | 423,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Non-U.S equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 96,000 | $ 102,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Non-U.S equity securities | Minimum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period | 5 days | 5 days | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Non-U.S equity securities | Maximum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period | 30 days | 30 days | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Non-U.S. equity investments at net asset value (NAV) | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 96,000 | $ 102,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 307,000 | $ 278,000 | |
Redemption notice period | 15 days | 15 days | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Private equity at NAV | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 22,000 | ||
Unfunded commitments | $ 66,000 | ||
Dissolution written notice period | 6 months | ||
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Cash equivalents, fund and at NAV | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 50,000 | $ 68,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Cash equivalents | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 35,000 | $ 43,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Cash equivalents | Minimum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period | 0 days | 0 days | |
Fair value measurements on a recurring basis | Net Asset Value | Pension benefits | Cash equivalents | Maximum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period | 1 day | 1 day | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 17,000 | $ 19,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Non-U.S equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 12,000 | $ 13,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Non-U.S equity securities | Minimum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period | 5 days | 5 days | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Non-U.S equity securities | Maximum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period | 30 days | 30 days | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Non-U.S. equity investments at net asset value (NAV) | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 12,000 | $ 13,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Fixed income securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 5,000 | $ 5,000 | |
Redemption notice period | 15 days | 15 days | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Private equity at NAV | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 0 | ||
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Cash equivalents, fund and at NAV | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 3,000 | $ 4,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Cash equivalents | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 0 | $ 1,000 | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Cash equivalents | Minimum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period | 0 days | 0 days | |
Fair value measurements on a recurring basis | Net Asset Value | Other benefits | Cash equivalents | Maximum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period | 1 day | 1 day |
Retirement benefits - Weighted
Retirement benefits - Weighted Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension benefits | |||
Benefit obligation | |||
Discount rate | 3.05% | 2.92% | 3.61% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Net periodic pension/benefit cost (years ended) | |||
Discount rate | 2.92% | 3.61% | 4.31% |
Expected return on plan assets | 7.25% | 7.25% | 7.25% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Pension benefits | American Savings Bank (ASB) | |||
Benefit obligation | |||
Discount rate | 3.04% | 2.76% | 3.49% |
Net periodic pension/benefit cost (years ended) | |||
Discount rate | 2.76% | 3.49% | |
Expected return on plan assets | 2.96% | 3.69% | 4.51% |
Other benefits | |||
Benefit obligation | |||
Discount rate | 3.07% | 2.83% | 3.52% |
Net periodic pension/benefit cost (years ended) | |||
Discount rate | 2.83% | 3.52% | 4.34% |
Expected return on plan assets | 7.25% | 7.25% | 7.25% |
Retirement benefits - Component
Retirement benefits - Components of NPPC and NPBC (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 81,432 | $ 73,387 | $ 62,135 |
Interest cost | 75,361 | 81,335 | 84,267 |
Expected return on plan assets | (132,223) | (113,800) | (111,989) |
Amortization of net prior service (gain) cost | 0 | 8 | (42) |
Amortization of net actuarial losses | 27,245 | 33,456 | 15,479 |
Net periodic pension/benefit cost | 51,815 | 74,386 | 49,850 |
Impact of PUC D&Os | 27,963 | 20,997 | 48,143 |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 79,778 | 95,383 | 97,993 |
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 79,463 | 71,604 | 60,461 |
Interest cost | 70,235 | 75,484 | 77,851 |
Expected return on plan assets | (125,404) | (107,369) | (104,632) |
Amortization of net prior service (gain) cost | 0 | 9 | 7 |
Amortization of net actuarial losses | 27,534 | 30,566 | 14,658 |
Net periodic pension/benefit cost | 51,828 | 70,294 | 48,345 |
Impact of PUC D&Os | 27,963 | 20,997 | 48,143 |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 79,791 | 91,291 | 96,488 |
Other benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 2,827 | 2,537 | 2,209 |
Interest cost | 6,122 | 7,407 | 8,004 |
Expected return on plan assets | (12,957) | (12,124) | (12,356) |
Amortization of net prior service (gain) cost | (1,533) | (1,761) | (1,806) |
Amortization of net actuarial losses | 203 | 208 | (13) |
Net periodic pension/benefit cost | (5,338) | (3,733) | (3,962) |
Impact of PUC D&Os | 4,839 | 3,179 | 3,258 |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | (499) | (554) | (704) |
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 2,802 | 2,515 | 2,191 |
Interest cost | 5,875 | 7,103 | 7,673 |
Expected return on plan assets | (12,755) | (11,957) | (12,180) |
Amortization of net prior service (gain) cost | (1,530) | (1,758) | (1,803) |
Amortization of net actuarial losses | 206 | 207 | 0 |
Net periodic pension/benefit cost | (5,402) | (3,890) | (4,119) |
Impact of PUC D&Os | 4,839 | 3,179 | 3,258 |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | $ (563) | $ (711) | $ (861) |
Retirement benefits - ABO and P
Retirement benefits - ABO and PBO in Excess of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined benefit plans with PBOs in excess of plan assets | |||
Defined contribution plan, expenses recognized | $ 6 | $ 7 | $ 7 |
Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plans - ABOs | 2,300 | 2,300 | |
Defined benefit plans with ABO in excess of plan assets | |||
ABOs | 0 | 2,100 | |
Fair value of plan assets | 0 | 2,000 | |
Defined benefit plans with PBOs in excess of plan assets | |||
PBOs | 2,500 | 2,500 | |
Fair value of plan assets | 2,200 | 2,000 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined benefit plans with PBOs in excess of plan assets | |||
Defined contribution plan, expenses recognized | 3 | 3 | $ 3 |
Hawaiian Electric Company, Inc. and Subsidiaries | Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plans - ABOs | 2,100 | 2,100 | |
Defined benefit plans with ABO in excess of plan assets | |||
ABOs | 0 | 2,100 | |
Fair value of plan assets | 0 | 1,900 | |
Defined benefit plans with PBOs in excess of plan assets | |||
PBOs | 2,500 | 2,400 | |
Fair value of plan assets | $ 2,100 | $ 1,900 |
Share-based compensation - Addi
Share-based compensation - Additional Information (Details) - USD ($) | Mar. 01, 2014 | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based compensation | ||||||
Income tax benefit | $ 1,400,000 | $ 1,000,000 | $ 1,400,000 | |||
Long-term incentive plan (LTIP) | ||||||
Share-based compensation | ||||||
Performance period | 3 years | |||||
Exception to forfeiture, minimum requisite service period | 12 months | |||||
Payout low end of range | 0.00% | |||||
Payout high end of range | 200.00% | |||||
Restricted stock units | ||||||
Share-based compensation | ||||||
Fair value | $ 3,000,000 | 4,200,000 | 3,200,000 | |||
Income tax benefit | 600,000 | 700,000 | 500,000 | |||
Unrecognized compensation cost | $ 4,600,000 | |||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 2 years | |||||
LTIP linked to TRS | ||||||
Share-based compensation | ||||||
Fair value | $ 800,000 | 2,600,000 | ||||
Income tax benefit | 200,000 | 400,000 | ||||
Unrecognized compensation cost | $ 1,000,000 | |||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 1 year 7 months 6 days | |||||
LTIP awards linked to other performance conditions | ||||||
Share-based compensation | ||||||
Fair value | $ 1,700,000 | 7,600,000 | $ 0 | |||
Income tax benefit | 400,000 | $ 1,200,000 | ||||
Unrecognized compensation cost | $ 3,400,000 | |||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 1 year 8 months 12 days | |||||
Equity and Incentive Plan (EIP) | ||||||
Share-based compensation | ||||||
Additional shares available for issuance (in shares) | 1,500,000 | |||||
Shares remaining available for future issuance (in shares) | 2,900,000 | |||||
Shares that can be issued upon vesting of outstanding units and achievement of performance goals (in shares) | 500,000 | |||||
Equity and Incentive Plan (EIP) | Restricted shares | ||||||
Share-based compensation | ||||||
Vesting period | 3 years | 4 years | 4 years | 4 years | ||
Equity and Incentive Plan (EIP) | Restricted shares | Share-based Payment Arrangement, Tranche One | ||||||
Share-based compensation | ||||||
Vesting percentage | 33.33% | 25.00% | 25.00% | 25.00% | ||
Equity and Incentive Plan (EIP) | Restricted shares | Share-based Payment Arrangement, Tranche Two | ||||||
Share-based compensation | ||||||
Vesting percentage | 33.33% | 25.00% | 25.00% | 25.00% | ||
Equity and Incentive Plan (EIP) | Restricted shares | Share-based Payment Arrangement, Tranche Three | ||||||
Share-based compensation | ||||||
Vesting percentage | 33.33% | 25.00% | 25.00% | 25.00% | ||
Equity and Incentive Plan (EIP) | Restricted shares | Share-Based Payment Arrangement, Tranche Four | ||||||
Share-based compensation | ||||||
Vesting percentage | 25.00% | 25.00% | 25.00% | |||
Nonemployee Director Stock Plan | ||||||
Share-based compensation | ||||||
Additional shares available for issuance (in shares) | 300,000 | |||||
Shares remaining available for future issuance (in shares) | 244,347 |
Share-based compensation - Rela
Share-based compensation - Related Income Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 9.1 | $ 5.8 | $ 10 |
Income tax benefit | 1.4 | 1 | 1.4 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 2.7 | 1.8 | 3.2 |
Income tax benefit | $ 0.6 | $ 0.4 | $ 0.6 |
Share-based compensation - The
Share-based compensation - The 2011 Director Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit | $ 1.4 | $ 1 | $ 1.4 |
Common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 29,816 | 36,100 | 36,344 |
Fair value | $ 1.3 | $ 1.3 | $ 1.6 |
Income tax benefit | $ 0.3 | $ 0.3 | $ 0.4 |
Share-based compensation - Rest
Share-based compensation - Restricted Stock Units (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Outstanding, beginning of period (in shares) | 193,939 | 207,641 | 200,358 |
Granted (in shares) | 137,582 | 78,595 | 96,565 |
Vested (in shares) | (79,623) | (77,719) | (76,813) |
Forfeited (in shares) | (18,450) | (14,578) | (12,469) |
Outstanding, end of period (in shares) | 233,448 | 193,939 | 207,641 |
Weighted-Average Grant-Date Fair Value Per Share | |||
Outstanding, beginning of period (in dollars per share) | $ 40.89 | $ 35.36 | $ 33.05 |
Granted (in dollars per share) | 34.66 | 47.99 | 37.82 |
Vested (in dollars per share) | 38.51 | 34.19 | 32.61 |
Forfeited (in dollars per share) | 39.92 | 36.20 | 34.20 |
Outstanding, end of period (in dollars per share) | $ 38.10 | $ 40.89 | $ 35.36 |
Total weighted-average grant-date fair value of shares granted (in millions) | $ 4.8 | $ 3.8 | $ 3.7 |
Share-based compensation - LTIP
Share-based compensation - LTIP Linked to TRS (Details) - LTIP linked to TRS - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Outstanding, beginning of period (in shares) | 89,222 | 96,402 | 65,578 |
Granted (in shares) | 46,024 | 24,630 | 35,215 |
Vested (issued or unissued and cancelled) (in shares) | (32,355) | (29,409) | 0 |
Forfeited (in shares) | (11,917) | (2,401) | (4,391) |
Outstanding, end of period (in shares) | 90,974 | 89,222 | 96,402 |
Weighted-Average Grant-Date Fair Value Per Share | |||
Outstanding, beginning of period (in dollars per share) | $ 42.10 | $ 39.62 | $ 38.81 |
Granted (in dollars per share) | 41.12 | 48.62 | 41.07 |
Vested (issued or unissued and cancelled) (in dollars per share) | 38.20 | 39.51 | 0 |
Forfeited (in dollars per share) | 43.07 | 41.22 | 39.19 |
Outstanding, end of period (in dollars per share) | $ 42.86 | $ 42.10 | $ 39.62 |
Total weighted-average grant-date fair value of shares granted (in millions) | $ 1.9 | $ 1.2 | $ 1.4 |
Share-based compensation - Assu
Share-based compensation - Assumptions to Determine the Fair Value of LTIP Awards Linked to TRS (Details) - LTIP linked to TRS - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.19% | 1.39% | 2.48% |
Expected life in years | 3 years | 3 years | 3 years |
Expected volatility | 29.90% | 13.10% | 15.80% |
Range of expected volatility for Peer Group, minimum | 25.60% | 13.60% | 15.00% |
Range of expected volatility for Peer Group, maximum | 102.90% | 95.40% | 73.20% |
Grant date fair value (in dollars per share) | $ 41.12 | $ 48.62 | $ 41.07 |
Share-based compensation - LT_2
Share-based compensation - LTIP Awards Linked To Other Performance Conditions (Details) - LTIP awards linked to other performance conditions - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Outstanding, beginning of period (in shares) | 220,715 | 403,768 | 276,169 |
Granted (in shares) | 184,102 | 98,522 | 140,855 |
Vested (in shares) | (43,155) | (135,804) | 0 |
Increased above target (cancelled) (in shares) | (7,646) | (136,163) | 4,314 |
Forfeited (in shares) | (47,674) | (9,608) | (17,570) |
Outstanding, end of period (in shares) | 306,342 | 220,715 | 403,768 |
Weighted-Average Grant-Date Fair Value Per Share | |||
Outstanding, beginning of period (in dollars per share) | $ 41.03 | $ 35.15 | $ 33.80 |
Granted (in dollars per share) | 34.37 | 48.10 | 37.78 |
Vested (in dollars per share) | 34.12 | 33.48 | 0 |
Increased above target (cancelled) (in dollars per share) | 39.06 | 36.44 | 33.53 |
Forfeited (in dollars per share) | 38.74 | 38.36 | 34.66 |
Outstanding, end of period (in dollars per share) | $ 38.42 | $ 41.03 | $ 35.15 |
Total weighted-average grant-date fair value of shares granted (in millions) | $ 6.3 | $ 4.7 | $ 5.3 |
Income taxes - Components of In
Income taxes - Components of Income Taxes Attributable to Net Income for Common Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Federal | |||
Current | $ 51,455 | $ 23,207 | $ 28,736 |
Deferred | (11,689) | (4,215) | (4,353) |
Deferred tax credits, net | 4,611 | 10,979 | 13,410 |
Federal taxes | 44,377 | 29,971 | 37,793 |
State | |||
Current | 12,119 | 8,430 | 10,472 |
Deferred | 6,290 | 2,509 | (10,732) |
Deferred tax credits, net | 21 | 0 | 14,104 |
State taxes | 18,430 | 10,939 | 13,844 |
Total | 62,807 | 40,910 | 51,637 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Federal | |||
Current | 42,794 | 31,950 | 21,751 |
Deferred | (12,109) | (5,408) | (7,793) |
Deferred tax credits, net | 302 | 1,549 | 13,155 |
Federal taxes | 30,987 | 28,091 | 27,113 |
State | |||
Current | 4,861 | 3,768 | 5,579 |
Deferred | 8,279 | 8,559 | (8,491) |
Deferred tax credits, net | 21 | 0 | 14,104 |
State taxes | 13,161 | 12,327 | 11,192 |
Total | $ 44,148 | $ 40,418 | $ 38,305 |
Income taxes - Income Tax Recon
Income taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Expense (Benefit) [Line Items] | |||
Amount at the federal statutory income tax rate | $ 65,281 | $ 50,531 | $ 56,996 |
Increase (decrease) resulting from: | |||
State income taxes, net of federal income tax benefit | 15,735 | 9,448 | 11,658 |
Net deferred tax asset (liability) adjustment related to the Tax Act | (9,886) | (11,267) | (9,255) |
Other, net | (8,323) | (7,802) | (7,762) |
Total | $ 62,807 | $ 40,910 | $ 51,637 |
Effective income tax rate | 20.20% | 17.00% | 19.00% |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Income Tax Expense (Benefit) [Line Items] | |||
Amount at the federal statutory income tax rate | $ 46,995 | $ 44,468 | $ 41,399 |
Increase (decrease) resulting from: | |||
State income taxes, net of federal income tax benefit | 10,323 | 9,658 | 8,703 |
Net deferred tax asset (liability) adjustment related to the Tax Act | (9,886) | (11,267) | (9,255) |
Other, net | (3,284) | (2,441) | (2,542) |
Total | $ 44,148 | $ 40,418 | $ 38,305 |
Effective income tax rate | 19.70% | 19.10% | 19.40% |
Income taxes - Deferred Tax Ass
Income taxes - Deferred Tax Assets and Liabilities Due to Book/Tax Differences (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Regulatory liabilities, excluding amounts attributable to property, plant and equipment | $ 87,817 | $ 93,684 |
Operating lease liabilities | 35,449 | 41,582 |
Revenue taxes | 35,040 | 22,726 |
Allowance for bad debts | 26,217 | 31,973 |
Other | 58,518 | 44,127 |
Total deferred tax assets | 243,041 | 234,092 |
Deferred tax liabilities | ||
Property, plant and equipment related | 500,659 | 487,209 |
Operating lease right-of-use assets | 35,271 | 41,370 |
Regulatory assets, excluding amounts attributable to property, plant and equipment | 23,700 | 25,841 |
Retirement benefits | 6,863 | 18,407 |
Other | 61,308 | 56,354 |
Total deferred tax liabilities | 627,801 | 629,181 |
Net deferred income tax liability | 384,760 | 395,089 |
Deferred tax assets, tax credit carryforwards | 11,000 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Deferred tax assets | ||
Regulatory liabilities, excluding amounts attributable to property, plant and equipment | 87,817 | 93,684 |
Operating lease liabilities | 29,661 | 34,586 |
Revenue taxes | 35,040 | 22,726 |
Allowance for bad debts | 7,156 | 4,835 |
Other | 20,529 | 24,741 |
Total deferred tax assets | 180,203 | 180,572 |
Deferred tax liabilities | ||
Property, plant and equipment related | 490,713 | 473,734 |
Operating lease right-of-use assets | 29,661 | 34,586 |
Regulatory assets, excluding amounts attributable to property, plant and equipment | 23,700 | 25,841 |
Retirement benefits | 8,261 | 20,537 |
Other | 36,502 | 23,672 |
Total deferred tax liabilities | 588,837 | 578,370 |
Net deferred income tax liability | 408,634 | $ 397,798 |
Deferred tax assets, tax credit carryforwards | 2,500 | |
State and Local Jurisdiction | ||
Deferred tax liabilities | ||
Tax credit carryforward | 14,600 | |
State and Local Jurisdiction | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Deferred tax liabilities | ||
Tax credit carryforward | $ 3,400 |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Expense (Benefit) [Line Items] | |||
Deferred tax assets, valuation allowance | $ 0 | $ 0 | |
Unrecognized tax benefits that would impact effective tax rate | 10.2 | 11.6 | |
Credit adjustments to interest expense on income taxes | 0.2 | (0.5) | $ 0.1 |
Amount of accrued interest related to uncertain tax positions | 0.3 | 0.1 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Income Tax Expense (Benefit) [Line Items] | |||
Unrecognized tax benefits that would impact effective tax rate | 10.2 | 11.6 | |
Credit adjustments to interest expense on income taxes | 0.1 | (0.3) | $ 0.1 |
Amount of accrued interest related to uncertain tax positions | $ 0.1 | $ 0.1 |
Income taxes - Changes in Unrec
Income taxes - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in total unrecognized tax benefits | |||
Unrecognized tax benefits, at the beginning of the period | $ 12.7 | $ 2.2 | $ 2.1 |
Additions based on tax positions taken during the year | 2.8 | 0.2 | 0.5 |
Reductions based on tax positions taken during the year | (0.5) | 0 | 0 |
Additions for tax positions of prior years | 7.6 | 11.6 | 0.1 |
Reductions for tax positions of prior years | (5.5) | (0.1) | (0.2) |
Lapses of statute of limitations | 0 | (0.2) | (0.3) |
Settlement | 0 | (1) | 0 |
Unrecognized tax benefits, at the end of the period | 17.1 | 12.7 | 2.2 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Changes in total unrecognized tax benefits | |||
Unrecognized tax benefits, at the beginning of the period | 12.7 | 1.7 | 1.6 |
Additions based on tax positions taken during the year | 0.3 | 0.2 | 0.5 |
Reductions based on tax positions taken during the year | 0 | 0 | 0 |
Additions for tax positions of prior years | 0.2 | 11.6 | 0.1 |
Reductions for tax positions of prior years | (1.6) | (0.1) | (0.2) |
Lapses of statute of limitations | 0 | (0.2) | (0.3) |
Settlement | 0 | (0.5) | 0 |
Unrecognized tax benefits, at the end of the period | $ 11.6 | $ 12.7 | $ 1.7 |
Cash flows (Details)
Cash flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental disclosures of cash flow information | |||
Interest paid to non-affiliates, net of amounts capitalized | $ 98 | $ 98 | $ 107 |
Income taxes paid (net of refundable credits) | 41 | 32 | 56 |
Income taxes refunded (including refundable credits) | 7 | 3 | 4 |
Supplemental disclosures of noncash activities | |||
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 48 | 44 | 64 |
Loans transferred from held for investment to held for sale (investing) | 61 | 0 | 0 |
Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) | 3 | 0 | 0 |
Right-of-use assets obtained in exchange for operating lease obligations (investing) | 44 | 26 | 7 |
Common stock issued (gross) for director and executive/management compensation (financing) | 7 | 16 | 5 |
Obligations to fund low income housing investments, net (investing) | 36 | 25 | 11 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Supplemental disclosures of cash flow information | |||
Interest paid to non-affiliates, net of amounts capitalized | 71 | 65 | 68 |
Income taxes paid (net of refundable credits) | 45 | 41 | 55 |
Income taxes refunded (including refundable credits) | 5 | 3 | 4 |
Supplemental disclosures of noncash activities | |||
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 43 | 41 | 62 |
Right-of-use assets obtained in exchange for operating lease obligations (investing) | 44 | 17 | 2 |
Electric utility property, plant and equipment | |||
Estimated fair value of noncash contributions in aid of construction (investing) | 8 | 10 | 9 |
Reduction of long-term debt from funds previously transferred for repayment (financing) | $ 0 | $ 82 | $ 0 |
Regulatory restrictions on ne_2
Regulatory restrictions on net assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Regulatory restrictions on net assets | ||||
Common stock equity | $ 2,390,884 | $ 2,337,502 | $ 2,280,260 | $ 2,162,280 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Regulatory restrictions on net assets | ||||
Restrictions on transfer of net assets to the parent in the form of cash dividends, loans and advances | $ 919,000 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Regulatory restrictions on net assets | ||||
Distribution restrictions, percent of earnings in current year and 5 preceding years if capitalization rate is less than 35% | 80.00% | |||
Total capitalization rate of HEI's electric utility subsidiaries | 57.00% | |||
Common stock equity | $ 2,261,899 | 2,141,918 | $ 2,047,352 | $ 1,957,641 |
American Savings Bank (ASB) | ||||
Regulatory restrictions on net assets | ||||
Common stock equity | 727,818 | $ 736,175 | ||
Restrictions on transfer of net assets to the parent in the form of cash dividends, loans and advances | $ 232,000 |
Significant group concentrati_2
Significant group concentrations of credit risk (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Major customers | |
Percentage of workforce covered by collective bargaining arrangement | 50.00% |
Percentage of benchmark loan to appraisal ratio in excess of which mortgage insurance is required | 80.00% |
American Savings Bank (ASB) | |
Major customers | |
Percentage of benchmark loan to appraisal ratio in excess of which mortgage insurance is required | 80.00% |
Fair value measurements - Fair
Fair value measurements - Fair Value Hierarchy of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets | ||
Available-for-sale investment securities | $ 2,574,618 | $ 1,970,417 |
Held-to-maturity investment securities | 510,474 | |
Financial liabilities | ||
Short-term borrowings—other than bank | 53,998 | 129,379 |
Other bank borrowings | 88,305 | 89,670 |
Carrying or notional amount | ||
Financial assets | ||
Available-for-sale investment securities | 2,574,618 | 1,970,417 |
Held-to-maturity investment securities | 522,270 | 226,947 |
Loans, net | 5,150,388 | 5,260,917 |
Mortgage servicing rights | 9,950 | 10,020 |
Derivative assets | 57,377 | 120,980 |
Financial liabilities | ||
Deposit liabilities | 423,976 | 548,830 |
Short-term borrowings—other than bank | 53,998 | 129,379 |
Other bank borrowings | 88,305 | 89,670 |
Long-term debt, net | 2,321,937 | 2,119,129 |
Derivative liabilities | 57,000 | 137,500 |
Carrying or notional amount | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Short-term borrowings | 49,979 | |
Long-term debt, net | 1,676,402 | 1,561,302 |
Estimated fair value | ||
Financial assets | ||
Available-for-sale investment securities | 2,574,618 | 1,970,417 |
Held-to-maturity investment securities | 510,474 | 229,963 |
Loans, net | 5,228,524 | 5,439,330 |
Mortgage servicing rights | 14,480 | 10,705 |
Derivative assets | 909 | 4,536 |
Financial liabilities | ||
Deposit liabilities | 442,361 | 552,800 |
Short-term borrowings—other than bank | 53,998 | 129,379 |
Other bank borrowings | 88,304 | 89,669 |
Long-term debt, net | 2,624,130 | 2,487,790 |
Derivative liabilities | 5,282 | 5,030 |
Estimated fair value | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Short-term borrowings | 49,979 | |
Long-term debt, net | 1,955,710 | 1,890,490 |
Estimated fair value | 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 | 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 | 11 | 500 |
Estimated fair value | Level 1 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Short-term borrowings | 0 | |
Long-term debt, net | 0 | 0 |
Estimated fair value | Level 2 | ||
Financial assets | ||
Available-for-sale investment securities | 2,559,191 | 1,943,232 |
Held-to-maturity investment securities | 510,474 | 229,963 |
Loans, net | 10,403 | 28,354 |
Mortgage servicing rights | 0 | 0 |
Derivative assets | 909 | 4,536 |
Financial liabilities | ||
Deposit liabilities | 442,361 | 552,800 |
Short-term borrowings—other than bank | 53,998 | 129,379 |
Other bank borrowings | 88,304 | 89,669 |
Long-term debt, net | 2,624,130 | 2,487,790 |
Derivative liabilities | 5,271 | 4,530 |
Estimated fair value | Level 2 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Short-term borrowings | 49,979 | |
Long-term debt, net | 1,955,710 | 1,890,490 |
Estimated fair value | Level 3 | ||
Financial assets | ||
Available-for-sale investment securities | 15,427 | 27,185 |
Held-to-maturity investment securities | 0 | 0 |
Loans, net | 5,218,121 | 5,410,976 |
Mortgage servicing rights | 14,480 | 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 | Level 3 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Short-term borrowings | 0 | |
Long-term debt, net | $ 0 | $ 0 |
Fair value measurements - Fai_2
Fair value measurements - Fair Value Measurements on a Recurring Basis (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | $ 2,574,618 | $ 1,970,417 |
Discount rate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Mortgage revenue bonds, measurement input | 0.0207 | |
Mortgage revenue bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, January 1 | $ 27,185 | 28,597 |
Principal payments received | (11,758) | (1,641) |
Purchases | 0 | 229 |
Unrealized gain (loss) included in other comprehensive income | 0 | 0 |
Balance, December 31 | 15,427 | 27,185 |
Fair value measurements on a recurring basis | Level 1 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 11 | 500 |
Fair value measurements on a recurring basis | Level 1 | Bank | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | Interest rate lock commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | Interest rate swap | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | Forward commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative liabilities | 11 | 500 |
Fair value measurements on a recurring basis | Level 1 | Bank | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | U.S. Treasury and federal agency obligations | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | Corporate bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | Mortgage revenue bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Other | Interest rate swap | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 2 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 909 | 4,536 |
Derivative liabilities | 5,271 | 4,530 |
Fair value measurements on a recurring basis | Level 2 | Bank | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 2,559,191 | 1,943,232 |
Fair value measurements on a recurring basis | Level 2 | Bank | Interest rate lock commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 638 | 4,536 |
Fair value measurements on a recurring basis | Level 2 | Bank | Interest rate swap | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 271 | 0 |
Fair value measurements on a recurring basis | Level 2 | Bank | Forward commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 2 | Bank | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 2,437,923 | 1,849,559 |
Fair value measurements on a recurring basis | Level 2 | Bank | U.S. Treasury and federal agency obligations | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 90,090 | 62,322 |
Fair value measurements on a recurring basis | Level 2 | Bank | Corporate bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 31,178 | 31,351 |
Fair value measurements on a recurring basis | Level 2 | Bank | Mortgage revenue bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 2 | Other | Interest rate swap | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative liabilities | 5,271 | 4,530 |
Fair value measurements on a recurring basis | Level 3 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 15,427 | 27,185 |
Fair value measurements on a recurring basis | Level 3 | Bank | Interest rate lock commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | Interest rate swap | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | Forward commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | U.S. Treasury and federal agency obligations | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | Corporate bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | Mortgage revenue bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities | 15,427 | 27,185 |
Fair value measurements on a recurring basis | Level 3 | Other | Interest rate swap | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative liabilities | $ 0 | $ 0 |
Fair value measurements - Fai_3
Fair value measurements - Fair Value Measurements on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | $ 5,228,524 | $ 5,439,330 |
Level 1 | Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 0 | 0 |
Level 2 | Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 10,403 | 28,354 |
Level 3 | Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | $ 5,218,121 | 5,410,976 |
Fair value measurements on a nonrecurring basis | Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 387 | |
Mortgage servicing rights | 3,001 | |
Fair value measurements on a nonrecurring basis | Level 1 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 0 | |
Mortgage servicing rights | 0 | |
Fair value measurements on a nonrecurring basis | Level 2 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 0 | |
Mortgage servicing rights | 0 | |
Fair value measurements on a nonrecurring basis | Level 3 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 387 | |
Mortgage servicing rights | $ 3,001 |
Fair value measurements - Quant
Fair value measurements - Quantitative Information About Level 3 Fair Value Measurements (Details) - Significant unobservable inputs (Level 3) $ in Thousands | Dec. 31, 2020USD ($) |
Discount rate | |
Fair value measurements | |
Significant unobservable input value | 0.093 |
Minimum | Prepayment speed | |
Fair value measurements | |
Significant unobservable input value | 0.15 |
Maximum | Prepayment speed | |
Fair value measurements | |
Significant unobservable input value | 0.22 |
Weighted Average | Prepayment speed | |
Fair value measurements | |
Significant unobservable input value | 0.22 |
Discounted cash flow | |
Fair value measurements | |
Mortgage servicing rights | $ 3,001 |
Commercial | Fair value of property or collateral | |
Fair value measurements | |
Fair value | $ 387 |
SCHEDULE I - CONDENSED FINANC_2
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||||
Cash and cash equivalents | $ 305,551 | $ 341,421 | ||
Accounts receivable | 344,213 | 281,216 | ||
Property, plant and equipment, net | 5,392,068 | 5,265,735 | ||
Other assets and intercompany receivables | 747,469 | 629,149 | ||
Total assets | 15,822,637 | 15,004,007 | $ 13,745,251 | |
Liabilities | ||||
Accounts payable | 205,544 | 182,347 | ||
Long-term debt, net | 2,321,937 | 2,119,129 | ||
Other | 669,215 | 618,438 | ||
Total liabilities | 13,397,460 | 12,632,212 | ||
Shareholders’ equity | ||||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 0 | 0 | ||
Common stock equity | 1,685,496 | 1,678,368 | ||
Retained earnings | 757,921 | 660,398 | ||
Accumulated other comprehensive loss, net of tax benefits | (52,533) | (1,264) | ||
Total shareholders’ equity | 2,390,884 | 2,337,502 | $ 2,280,260 | $ 2,162,280 |
Total capitalization and liabilities | $ 15,822,637 | $ 15,004,007 | ||
Preferred stock, authorized shares (in shares) | 10,000,000 | 10,000,000 | ||
Common stock, authorized shares (in shares) | 200,000,000 | 200,000,000 | ||
Common stock, issued shares (in shares) | 109,311,785 | 109,181,124 | ||
Common stock, outstanding shares (in shares) | 109,311,785 | 109,181,124 | ||
Hawaiian Electric (parent only) | ||||
Assets | ||||
Cash and cash equivalents | $ 479 | $ 299 | ||
Accounts receivable | 873 | 738 | ||
Property, plant and equipment, net | 2,052 | 2,456 | ||
Deferred income tax assets | 17,000 | 14,236 | ||
Other assets and intercompany receivables | 15,940 | 18,726 | ||
Investments in subsidiaries, at equity | 3,025,729 | 2,893,781 | ||
Total assets | 3,062,073 | 2,930,236 | ||
Liabilities | ||||
Accounts payable | 914 | 673 | ||
Interest payable | 2,238 | 2,918 | ||
Commercial paper | 53,998 | 64,491 | ||
Short-term borrowings from non-affiliate | 0 | 14,909 | ||
Long-term debt, net | 548,480 | 449,145 | ||
Retirement benefits liability | 26,340 | 31,688 | ||
Other | 39,219 | 28,910 | ||
Total liabilities | 671,189 | 592,734 | ||
Shareholders’ equity | ||||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 0 | 0 | ||
Common stock equity | 1,685,496 | 1,678,368 | ||
Retained earnings | 757,921 | 660,398 | ||
Accumulated other comprehensive loss, net of tax benefits | (52,533) | (1,264) | ||
Total shareholders’ equity | 2,390,884 | 2,337,502 | ||
Total capitalization and liabilities | $ 3,062,073 | $ 2,930,236 | ||
Preferred stock, authorized shares (in shares) | 10,000,000 | 10,000,000 | ||
Preferred stock, issued shares (in shares) | 0 | 0 | ||
Common stock, authorized shares (in shares) | 200,000,000 | 200,000,000 | ||
Common stock, issued shares (in shares) | 109,311,785 | 109,181,124 | ||
Common stock, outstanding shares (in shares) | 109,311,785 | 109,181,124 |
SCHEDULE I - CONDENSED FINANC_3
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - STATEMENTS OF INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||
Revenues | $ 2,521,425 | $ 2,269,451 | |
Expenses: | |||
Depreciation of property, plant and equipment | 246,158 | 238,114 | $ 229,858 |
Total expenses | 2,464,313 | 2,268,282 | 2,525,927 |
Less: Retirement defined benefits expense (credit)—other than service costs | (5,848) | 3,210 | 2,806 |
Interest expense | 99,403 | 99,808 | 109,339 |
Income before income taxes | 310,863 | 240,624 | 271,409 |
Income tax benefits | (62,807) | (40,910) | (51,637) |
Net income (loss) | 248,056 | 199,714 | 219,772 |
Hawaiian Electric (parent only) | |||
Revenues | |||
Revenues | 105 | 208 | 777 |
Equity in net income of subsidiaries | 278,743 | 227,098 | 246,005 |
Expenses: | |||
Operating, administrative and general | 24,006 | 20,731 | 19,195 |
Depreciation of property, plant and equipment | 414 | 485 | 570 |
Taxes, other than income taxes | 514 | 654 | 570 |
Total expenses | 24,934 | 21,870 | 20,335 |
Income before interest expense and income tax benefits | 253,914 | 205,436 | 226,447 |
Less: Retirement defined benefits expense (credit)—other than service costs | (114) | 634 | 442 |
Interest expense | 18,444 | 18,237 | 17,930 |
Income before income taxes | 235,584 | 186,565 | 208,075 |
Income tax benefits | 10,582 | 11,259 | 9,807 |
Net income (loss) | $ 246,166 | $ 197,824 | $ 217,882 |
SCHEDULE I - CONDENSED FINANC_4
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net cash provided by operating activities | $ 375,673 | $ 429,407 | $ 512,470 |
Cash flows from investing activities | |||
Capital expenditures | (314,524) | (383,895) | (457,520) |
Other, net | 27 | 3,412 | 13,291 |
Net cash used in investing activities | (1,179,592) | (1,413,648) | (541,709) |
Cash flows from financing activities | |||
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (10,493) | (71,219) | 86,718 |
Proceeds from issuance of short-term debt | 0 | 165,000 | 75,000 |
Repayment of short-term debt | (65,000) | (150,000) | (50,000) |
Proceeds from issuance of long-term debt | 285,886 | 415,997 | 289,349 |
Repayment of long-term debt | (82,262) | (178,969) | (287,285) |
Common stock dividends | (148,643) | (144,096) | (139,463) |
Other | (3,080) | (3,203) | (1,836) |
Net cash used in financing activities | 756,402 | 1,115,535 | 87,716 |
Net increase (decrease) in cash and equivalents | (47,517) | 131,294 | 58,477 |
Cash, cash equivalents and restricted cash, January 1 | 358,979 | 227,685 | 169,208 |
Cash, cash equivalents and restricted cash, December 31 | 311,462 | 358,979 | 227,685 |
Hawaiian Electric (parent only) | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 154,151 | 134,363 | 131,120 |
Cash flows from investing activities | |||
Increase in note receivable from subsidiary | 0 | 0 | (1,187) |
Decrease in note receivable from subsidiary | 0 | 22,719 | 0 |
Capital expenditures | (10) | (20) | (47) |
Investments in subsidiaries | (76,232) | (42,664) | (38,935) |
Other, net | 180 | 2,435 | (1,001) |
Net cash used in investing activities | (76,062) | (17,530) | (41,170) |
Cash flows from financing activities | |||
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (10,493) | (32,232) | 47,731 |
Proceeds from issuance of short-term debt | 0 | 65,000 | 0 |
Repayment of short-term debt | (15,000) | (50,000) | 0 |
Proceeds from issuance of long-term debt | 150,000 | 50,000 | 0 |
Repayment of long-term debt | (50,000) | 0 | 0 |
Proceeds from issuance of syndicated credit facility | 0 | 66,300 | 0 |
Repayment of syndicated credit facility | 0 | (66,300) | 0 |
Withheld shares for employee taxes on vested share-based compensation | (2,006) | (5,700) | (997) |
Common stock dividends | (148,643) | (144,096) | (139,463) |
Other | (1,767) | (459) | (10) |
Net cash used in financing activities | (77,909) | (117,487) | (92,739) |
Net increase (decrease) in cash and equivalents | 180 | (654) | (2,789) |
Cash, cash equivalents and restricted cash, January 1 | 299 | 953 | 3,742 |
Cash, cash equivalents and restricted cash, December 31 | $ 479 | $ 299 | $ 953 |
SCHEDULE I - CONDENSED FINANC_5
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Less unamortized debt issuance costs | $ (3,164) | $ (2,249) | |
Long-term debt, net—other than bank | 2,321,937 | 2,119,129 | |
Aggregate principal payments, fiscal year maturity: | |||
2022 | 223,000 | ||
2023 | 163,000 | ||
2024 | 6,000 | ||
2025 | 104,000 | ||
2026 | 131,000 | ||
Hawaiian Electric (parent only) | |||
Condensed Financial Statements, Captions [Line Items] | |||
Less unamortized debt issuance costs | (1,520) | (855) | |
Long-term debt, net—other than bank | 548,480 | 449,145 | |
Aggregate principal payments, fiscal year maturity: | |||
2022 | 150,000 | ||
2023 | 50,000 | ||
2024 | 0 | ||
2025 | 50,000 | ||
2026 | 0 | ||
Thereafter | 300,000 | ||
Cash dividends paid | 172,000 | 145,000 | $ 157,000 |
Hawaiian Electric (parent only) | ASB Hawaii, Inc. | Consolidated subsidiary | |||
Aggregate principal payments, fiscal year maturity: | |||
Accounts receivable reduction | 2,100 | 2,300 | 2,300 |
HEI notes payable increase to ASHI | 2,100 | 2,300 | $ 2,300 |
Hawaiian Electric (parent only) | HEI loan 2.99%, due 2022 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 150,000 | 150,000 | |
Debt instrument, stated interest rate | 2.99% | ||
Hawaiian Electric (parent only) | HEI 5.67% senior notes, due 2021 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 0 | 50,000 | |
Debt instrument, stated interest rate | 5.67% | ||
Hawaiian Electric (parent only) | HEI 3.99% senior notes, due 2023 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 50,000 | 50,000 | |
Debt instrument, stated interest rate | 3.99% | ||
Hawaiian Electric (parent only) | HEI 4.58% senior notes, due 2025 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 50,000 | 50,000 | |
Debt instrument, stated interest rate | 4.58% | ||
Hawaiian Electric (parent only) | HEI 4.72% senior notes, due 2028 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 100,000 | 100,000 | |
Debt instrument, stated interest rate | 4.72% | ||
Hawaiian Electric (parent only) | HEI 2.82% senior notes, due 2028 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 24,000 | 0 | |
Debt instrument, stated interest rate | 2.82% | ||
Hawaiian Electric (parent only) | HEI 2.48% senior notes, due 2028 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 30,000 | 0 | |
Debt instrument, stated interest rate | 2.48% | ||
Hawaiian Electric (parent only) | HEI 2.98% senior notes, due 2030 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 50,000 | 50,000 | |
Debt instrument, stated interest rate | 2.98% | ||
Hawaiian Electric (parent only) | HEI 3.15% senior notes, due 2031 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 51,000 | 0 | |
Debt instrument, stated interest rate | 3.15% | ||
Hawaiian Electric (parent only) | HEI 2.78% senior notes, due 2031 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 25,000 | 0 | |
Debt instrument, stated interest rate | 2.78% | ||
Hawaiian Electric (parent only) | HEI 3.74% senior notes, due 2051 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 20,000 | $ 0 | |
Debt instrument, stated interest rate | 3.74% |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation and qualifying accounts | |||
Bad debt expenses deferred to regulatory assets | $ 10,700 | $ 16,700 | |
Bill credits | 2,000 | ||
Allowance for uncollectible accounts – electric utility | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Valuation and qualifying accounts | |||
Balance at begin- ning of period | 17,809 | 1,377 | $ 1,480 |
Charged to costs and expenses | 4,183 | 2,100 | 2,106 |
Charged to other accounts | 11,795 | 18,041 | 795 |
Deductions | 7,687 | 3,709 | 3,004 |
Balance at end of period | $ 26,100 | $ 17,809 | $ 1,377 |