Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 18, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 | |
Entity Address, Address Line Two | 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(s) | HE | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 110,124,098 | |
Entity Central Index Key | 0000354707 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Entity Registrant Name | HAWAIIAN ELECTRIC COMPANY, INC. | |
Entity File Number | 1-4955 | |
Entity Tax Identification Number | 99-0040500 | |
Entity Incorporation, State or Country Code | HI | |
Entity Address, Address Line One | 1099 Alakea Street | |
Entity Address, Address Line Two | Suite 2200 | |
Entity Address, City or Town | Honolulu | |
Entity Address, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 | |
City Area Code | 808 | |
Local Phone Number | 543-7771 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,854,278 | |
Entity Central Index Key | 0000046207 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Revenues | $ 901,873 | $ 1,042,197 | $ 2,725,795 | $ 2,722,872 |
Expenses | ||||
Total expenses | 826,762 | 940,082 | 2,464,187 | 2,434,813 |
Operating income (loss) | ||||
Total operating income | 75,111 | 102,115 | 261,608 | 288,059 |
Retirement defined benefits credit—other than service costs | 1,256 | 1,039 | 3,561 | 3,528 |
Interest expense, net—other than on deposit liabilities and other bank borrowings | (32,629) | (26,626) | (91,259) | (75,940) |
Allowance for borrowed funds used during construction | 1,372 | 825 | 3,798 | 2,401 |
Allowance for equity funds used during construction | 4,000 | 2,552 | 11,073 | 7,431 |
Gain on sales of equity-method investment | 0 | 0 | 0 | 8,123 |
Income (loss) before income taxes | 49,110 | 79,905 | 188,781 | 233,602 |
Income taxes | 7,521 | 17,352 | 36,915 | 48,395 |
Net income (loss) | 41,589 | 62,553 | 151,866 | 185,207 |
Preferred stock dividends of subsidiaries | 471 | 471 | 1,417 | 1,417 |
Net income for common stock | $ 41,118 | $ 62,082 | $ 150,449 | $ 183,790 |
Basic earnings per common share (in dollars per share) | $ 0.37 | $ 0.57 | $ 1.37 | $ 1.68 |
Diluted earnings per common share (in dollars per share) | $ 0.37 | $ 0.57 | $ 1.37 | $ 1.68 |
Weighted-average number of common shares outstanding (in shares) | 109,728 | 109,470 | 109,606 | 109,421 |
Net effect of potentially dilutive shares (share-based compensation programs) (in shares) | 189 | 235 | 326 | 291 |
Weighted-average shares assuming dilution (in shares) | 109,917 | 109,705 | 109,932 | 109,712 |
Electric utility | ||||
Revenues | ||||
Revenues | $ 794,987 | $ 955,971 | $ 2,419,539 | $ 2,483,636 |
Expenses | ||||
Total expenses | 723,629 | 876,922 | 2,198,681 | 2,259,838 |
Operating income (loss) | ||||
Total operating income | 71,358 | 79,049 | 220,858 | 223,798 |
Income (loss) before income taxes | 55,415 | 63,712 | 175,391 | 179,771 |
Income taxes | 11,456 | 13,450 | 38,126 | 37,967 |
Net income (loss) | 43,959 | 50,262 | 137,265 | 141,804 |
Preferred stock dividends of subsidiaries | 498 | 498 | 1,496 | 1,496 |
Net income for common stock | 43,461 | 49,764 | 135,769 | 140,308 |
Bank | ||||
Revenues | ||||
Revenues | 100,974 | 81,411 | 291,716 | 231,850 |
Expenses | ||||
Total expenses | 88,415 | 54,311 | 230,769 | 152,797 |
Operating income (loss) | ||||
Total operating income | 12,559 | 27,100 | 60,947 | 79,053 |
Income (loss) before income taxes | 12,749 | 27,281 | 61,511 | 79,605 |
Income taxes | 1,384 | 6,525 | 11,380 | 17,513 |
Net income (loss) | 11,365 | 20,756 | 50,131 | 62,092 |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 |
Net income for common stock | 11,365 | 20,756 | 50,131 | 62,092 |
Other | ||||
Revenues | ||||
Revenues | 5,912 | 4,815 | 14,540 | 7,386 |
Expenses | ||||
Total expenses | 14,718 | 8,849 | 34,737 | 22,178 |
Operating income (loss) | ||||
Total operating income | (8,806) | (4,034) | (20,197) | (14,792) |
Income (loss) before income taxes | (19,054) | (11,088) | (48,121) | (25,774) |
Income taxes | (5,319) | (2,623) | (12,591) | (7,085) |
Net income (loss) | (13,735) | (8,465) | (35,530) | (18,689) |
Preferred stock dividends of subsidiaries | (27) | (27) | (79) | (79) |
Net income for common stock | $ (13,708) | $ (8,438) | $ (35,451) | $ (18,610) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income for common stock | $ 41,118 | $ 62,082 | $ 150,449 | $ 183,790 |
Net unrealized gains (losses) on available-for-sale investment securities: | ||||
Net unrealized losses on available-for-sale investment securities arising during the period, net of taxes of $(13,918), $(36,230), $(11,860) and $(112,838), respectively | (38,016) | (98,965) | (32,395) | (308,229) |
Amortization of unrealized holding losses on held-to-maturity securities, net of taxes of $1,354, nil, $4,050 and nil, respectively | 3,699 | 0 | 11,065 | 0 |
Derivatives qualifying as cash flow hedges: | ||||
Unrealized interest rate hedging gains (losses) arising during the period, net of taxes of $(185), $901, $(237) and $2,220, respectively | (535) | 2,597 | (684) | 6,400 |
Reclassification adjustment to net income, net of taxes of $(17), $19, $(50) and $56, respectively | (47) | 53 | (143) | 161 |
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses (gains) recognized during the period in net periodic benefit cost, net of taxes of $(153), $1,943, $(397) and $3,549, respectively | (446) | 5,606 | (1,160) | 10,229 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $163, $(1,839), $458 and $(3,320), respectively | 470 | (5,303) | 1,321 | (9,572) |
Other comprehensive income (loss), net of taxes | (34,875) | (96,012) | (21,996) | (301,011) |
Comprehensive income (loss) attributable to Hawaiian Electric Industries, Inc. | $ 6,243 | $ (33,930) | $ 128,453 | $ (117,221) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net unrealized gains (losses) on available-for-sale investment securities: | ||||
Net unrealized losses on available-for-sale investment securities arising during the period, tax | $ (13,918) | $ (36,230) | $ (11,860) | $ (112,838) |
Amortization of unrealized holding losses on held-to-maturity securities, net of taxes | 1,354 | 0 | 4,050 | 0 |
Derivatives qualifying as cash flow hedges: | ||||
Unrealized interest rate hedging arising during the period, tax | (185) | 901 | (237) | 2,220 |
Reclassification adjustment for net unrealized losses included in net income, tax | (17) | 19 | (50) | 56 |
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax | (153) | 1,943 | (397) | 3,549 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, tax | $ 163 | $ (1,839) | $ 458 | $ (3,320) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 667,129 | $ 199,877 |
Restricted cash | 15,164 | 5,050 |
Accounts receivable and unbilled revenues, net | 540,082 | 511,903 |
Available-for-sale investment securities, at fair value | 1,266,412 | 1,429,667 |
Held-to-maturity investment securities, at amortized cost | 1,212,005 | 1,251,747 |
Stock in Federal Home Loan Bank, at cost | 18,000 | 26,560 |
Loans held for investment, net | 6,114,640 | 5,906,690 |
Loans held for sale, at lower of cost or fair value | 2,171 | 824 |
Property, plant and equipment, net of accumulated depreciation of $3,341,082 and $3,192,545 at September 30, 2023 and December 31, 2022, respectively | 5,917,342 | 5,687,003 |
Operating lease right-of-use assets | 99,466 | 115,684 |
Regulatory assets | 231,197 | 242,513 |
Other | 826,020 | 824,536 |
Goodwill | 82,190 | 82,190 |
Total assets | 16,991,818 | 16,284,244 |
Liabilities | ||
Accounts payable | 256,323 | 251,460 |
Interest and dividends payable | 57,901 | 21,333 |
Deposit liabilities | 8,224,351 | 8,169,696 |
Short-term borrowings—other than bank | 0 | 172,568 |
Other bank borrowings | 750,000 | 695,120 |
Long-term debt, net—other than bank | 2,944,589 | 2,384,980 |
Deferred income taxes | 258,942 | 262,462 |
Operating lease liabilities | 108,681 | 126,604 |
Finance lease liabilities | 122,320 | 48,709 |
Regulatory liabilities | 1,101,773 | 1,055,650 |
Defined benefit pension and other postretirement benefit plans liability | 70,785 | 71,813 |
Other | 837,506 | 787,057 |
Total liabilities | 14,733,171 | 14,047,452 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies (Notes 2, 4 and 5) | ||
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: 110,086,035 shares and 109,470,795 shares at September 30, 2023 and December 31, 2022, respectively | 1,704,447 | 1,692,697 |
Retained earnings | 877,931 | 845,830 |
Accumulated other comprehensive loss, net of tax benefits | (358,024) | (336,028) |
Total shareholders’ equity | 2,224,354 | 2,202,499 |
Total liabilities and shareholders’ equity | $ 16,991,818 | $ 16,284,244 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Property, plant and equipment, accumulated depreciation | $ 3,341,082 | $ 3,192,545 |
Shareholders’ equity | ||
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, authorized shares (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 110,086,035 | 109,470,795 |
Common stock, shares outstanding (in shares) | 110,086,035 | 109,470,795 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock | Retained earnings | Accumulated other comprehensive income (loss) |
Beginning balance (in shares) at Dec. 31, 2021 | 109,312,000 | |||
Beginning balance at Dec. 31, 2021 | $ 2,390,884 | $ 1,685,496 | $ 757,921 | $ (52,533) |
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | 69,167 | 69,167 | ||
Other comprehensive (loss) income, net of tax benefits | (117,159) | (117,159) | ||
Share-based expenses and other, net (in shares) | 119,000 | |||
Share-based expenses and other, net | (949) | $ (949) | ||
Common stock dividends | (38,301) | (38,301) | ||
Ending balance (in shares) at Mar. 31, 2022 | 109,431,000 | |||
Ending balance at Mar. 31, 2022 | 2,303,642 | $ 1,684,547 | 788,787 | (169,692) |
Beginning balance (in shares) at Dec. 31, 2021 | 109,312,000 | |||
Beginning balance at Dec. 31, 2021 | 2,390,884 | $ 1,685,496 | 757,921 | (52,533) |
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | 183,790 | |||
Other comprehensive (loss) income, net of tax benefits | (301,011) | |||
Ending balance (in shares) at Sep. 30, 2022 | 109,470,000 | |||
Ending balance at Sep. 30, 2022 | 2,162,922 | $ 1,689,672 | 826,794 | (353,544) |
Beginning balance (in shares) at Mar. 31, 2022 | 109,431,000 | |||
Beginning balance at Mar. 31, 2022 | 2,303,642 | $ 1,684,547 | 788,787 | (169,692) |
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | 52,541 | 52,541 | ||
Other comprehensive (loss) income, net of tax benefits | (87,840) | (87,840) | ||
Share-based expenses and other, net (in shares) | 36,000 | |||
Share-based expenses and other, net | 3,462 | $ 3,462 | ||
Common stock dividends | (38,301) | (38,301) | ||
Ending balance (in shares) at Jun. 30, 2022 | 109,467,000 | |||
Ending balance at Jun. 30, 2022 | 2,233,504 | $ 1,688,009 | 803,027 | (257,532) |
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | 62,082 | 62,082 | ||
Other comprehensive (loss) income, net of tax benefits | (96,012) | (96,012) | ||
Share-based expenses and other, net (in shares) | 3,000 | |||
Share-based expenses and other, net | 1,663 | $ 1,663 | ||
Common stock dividends | (38,315) | (38,315) | ||
Ending balance (in shares) at Sep. 30, 2022 | 109,470,000 | |||
Ending balance at Sep. 30, 2022 | $ 2,162,922 | $ 1,689,672 | 826,794 | (353,544) |
Beginning balance (in shares) at Dec. 31, 2022 | 109,470,795 | 109,471,000 | ||
Beginning balance at Dec. 31, 2022 | $ 2,202,499 | $ 1,692,697 | 845,830 | (336,028) |
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | 54,721 | 54,721 | ||
Other comprehensive (loss) income, net of tax benefits | 20,488 | 20,488 | ||
Share-based expenses and other, net (in shares) | 101,000 | |||
Share-based expenses and other, net | (307) | $ (307) | ||
Common stock dividends | (39,446) | (39,446) | ||
Ending balance (in shares) at Mar. 31, 2023 | 109,572,000 | |||
Ending balance at Mar. 31, 2023 | $ 2,237,955 | $ 1,692,390 | 861,105 | (315,540) |
Beginning balance (in shares) at Dec. 31, 2022 | 109,470,795 | 109,471,000 | ||
Beginning balance at Dec. 31, 2022 | $ 2,202,499 | $ 1,692,697 | 845,830 | (336,028) |
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | 150,449 | |||
Other comprehensive (loss) income, net of tax benefits | $ (21,996) | |||
Ending balance (in shares) at Sep. 30, 2023 | 110,086,035 | 110,086,000 | ||
Ending balance at Sep. 30, 2023 | $ 2,224,354 | $ 1,704,447 | 877,931 | (358,024) |
Beginning balance (in shares) at Mar. 31, 2023 | 109,572,000 | |||
Beginning balance at Mar. 31, 2023 | 2,237,955 | $ 1,692,390 | 861,105 | (315,540) |
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | 54,610 | 54,610 | ||
Other comprehensive (loss) income, net of tax benefits | (7,609) | (7,609) | ||
Share-based expenses and other, net (in shares) | 40,000 | |||
Share-based expenses and other, net | 3,868 | $ 3,868 | ||
Common stock dividends | (39,447) | (39,447) | ||
Ending balance (in shares) at Jun. 30, 2023 | 109,612,000 | |||
Ending balance at Jun. 30, 2023 | 2,249,377 | $ 1,696,258 | 876,268 | (323,149) |
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | 41,118 | 41,118 | ||
Other comprehensive (loss) income, net of tax benefits | (34,875) | (34,875) | ||
Dividend reinvestment and stock purchase plan (in shares) | 474,000 | |||
Dividend reinvestment and stock purchase plan | 5,827 | $ 5,827 | ||
Share-based expenses and other, net | 2,362 | $ 2,362 | ||
Common stock dividends | $ (39,455) | (39,455) | ||
Ending balance (in shares) at Sep. 30, 2023 | 110,086,035 | 110,086,000 | ||
Ending balance at Sep. 30, 2023 | $ 2,224,354 | $ 1,704,447 | $ 877,931 | $ (358,024) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Common stock dividends (in dollars per share) | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.35 | $ 0.35 | $ 0.35 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 151,866 | $ 185,207 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation of property, plant and equipment | 200,722 | 190,075 |
Other amortization | 32,744 | 28,916 |
Provision for credit losses | 10,053 | (692) |
Loans originated, held for sale | (37,288) | (120,195) |
Proceeds from sale of loans, held for sale | 36,086 | 126,357 |
Gain on sales of investment securities, net and equity-method investment | 0 | (8,123) |
Gain on sale of loans, net | (701) | (1,630) |
Deferred income taxes | (5,594) | (21,631) |
Share-based compensation expense | 8,281 | 7,337 |
Allowance for equity funds used during construction | (11,073) | (7,431) |
Other | (5,315) | (5,392) |
Changes in assets and liabilities | ||
Decrease (increase) in accounts receivable and unbilled revenues, net | 41,494 | (159,619) |
Decrease (increase) in fuel oil stock | 38,587 | (127,413) |
Decrease in regulatory assets | 13,908 | 34,278 |
Increase in regulatory liabilities | 32,454 | 29,294 |
Increase in accounts, interest and dividends payable | 70,850 | 39,009 |
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | (24,860) | 73,279 |
Decrease in defined benefit pension and other postretirement benefit plans liability | (6,722) | (4,228) |
Change in other assets and liabilities | (70,354) | (44,411) |
Net cash provided by operating activities | 475,138 | 212,987 |
Cash flows from investing activities | ||
Available-for-sale investment securities purchased | 0 | (366,177) |
Principal repayments on available-for-sale investment securities | 117,042 | 285,519 |
Proceeds from repayments or maturities of held-to-maturity investment securities | 52,823 | 10,433 |
Purchase of stock from Federal Home Loan Bank | (76,040) | (93,000) |
Redemption of stock from Federal Home Loan Bank | 84,600 | 88,000 |
Net increase in loans held for investment | (283,126) | (395,185) |
Proceeds from sale of commercial loans | 94,665 | 0 |
Purchase of loans held for investment | (26,195) | (77,274) |
Capital expenditures | (342,364) | (236,278) |
Contributions to low income housing investments | (418) | (740) |
Acquisition of business | 0 | (25,706) |
Other | 9,375 | 15,646 |
Net cash used in investing activities | (369,638) | (794,762) |
Cash flows from financing activities | ||
Net increase (decrease) in deposit liabilities | (43,655) | 86,673 |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (137,650) | 117,127 |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | (596,810) | 320,735 |
Proceeds from issuance of short-term debt | 65,000 | 0 |
Repayment of short-term debt | (100,000) | 0 |
Proceeds from issuance of other bank borrowings | 1,000,000 | 0 |
Repayment of other bank borrowings | (250,000) | 0 |
Proceeds from issuance of long-term debt | 625,000 | 67,312 |
Repayment of long-term debt | (64,317) | (16,752) |
Withheld shares for employee taxes on vested share-based compensation | (2,356) | (3,158) |
Net proceeds from issuance of common stock | 437 | 0 |
Common stock dividends | (112,957) | (114,917) |
Preferred stock dividends of subsidiaries | (1,417) | (1,417) |
Other | (9,409) | (6,112) |
Net cash provided by financing activities | 371,866 | 449,491 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 477,366 | (132,284) |
Cash, cash equivalents and restricted cash, beginning of period | 204,927 | 311,462 |
Cash, cash equivalents and restricted cash, end of period | 682,293 | 179,178 |
Less: Restricted cash | (15,164) | (3,898) |
Cash and cash equivalents | $ 667,129 | $ 175,280 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Income (unaudited) - HECO - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||||||
Revenues | $ 901,873 | $ 1,042,197 | $ 2,725,795 | $ 2,722,872 | ||||
Expenses | ||||||||
Total expenses | 826,762 | 940,082 | 2,464,187 | 2,434,813 | ||||
Total operating income | 75,111 | 102,115 | 261,608 | 288,059 | ||||
Allowance for equity funds used during construction | 4,000 | 2,552 | 11,073 | 7,431 | ||||
Retirement defined benefits credit—other than service costs | 1,256 | 1,039 | 3,561 | 3,528 | ||||
Allowance for borrowed funds used during construction | 1,372 | 825 | 3,798 | 2,401 | ||||
Income (loss) before income taxes | 49,110 | 79,905 | 188,781 | 233,602 | ||||
Income taxes | 7,521 | 17,352 | 36,915 | 48,395 | ||||
Net income (loss) | 41,589 | 62,553 | 151,866 | 185,207 | ||||
Preferred stock dividends of Hawaiian Electric | 471 | 471 | 1,417 | 1,417 | ||||
Net income for common stock | 41,118 | $ 54,610 | $ 54,721 | 62,082 | $ 52,541 | $ 69,167 | 150,449 | 183,790 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Revenues | ||||||||
Revenues | 794,987 | 955,971 | 2,419,539 | 2,483,636 | ||||
Expenses | ||||||||
Fuel oil | 267,438 | 383,602 | 881,692 | 874,543 | ||||
Purchased power | 177,795 | 225,209 | 498,990 | 606,827 | ||||
Other operation and maintenance | 142,508 | 121,110 | 407,184 | 371,259 | ||||
Depreciation | 61,165 | 58,711 | 182,781 | 175,921 | ||||
Taxes, other than income taxes | 74,723 | 88,290 | 228,034 | 231,288 | ||||
Total expenses | 723,629 | 876,922 | 2,198,681 | 2,259,838 | ||||
Total operating income | 71,358 | 79,049 | 220,858 | 223,798 | ||||
Allowance for equity funds used during construction | 4,000 | 2,552 | 11,073 | 7,431 | ||||
Retirement defined benefits credit—other than service costs | 1,132 | 895 | 3,227 | 2,876 | ||||
Interest expense and other charges, net | (22,447) | (19,609) | (63,565) | (56,735) | ||||
Allowance for borrowed funds used during construction | 1,372 | 825 | 3,798 | 2,401 | ||||
Income (loss) before income taxes | 55,415 | 63,712 | 175,391 | 179,771 | ||||
Income taxes | 11,456 | 13,450 | 38,126 | 37,967 | ||||
Net income | 43,959 | 50,262 | 137,265 | 141,804 | ||||
Preferred stock dividends of subsidiaries | 228 | 228 | 686 | 686 | ||||
Net income (loss) | 43,731 | 50,034 | 136,579 | 141,118 | ||||
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 810 | 810 | ||||
Net income for common stock | $ 43,461 | $ 45,299 | $ 47,009 | $ 49,764 | $ 44,135 | $ 46,409 | $ 135,769 | $ 140,308 |
Condensed Consolidated Statem_8
Condensed Consolidated Statements of Comprehensive Income (unaudited) - HECO - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net income for common stock | $ 41,118 | $ 54,610 | $ 54,721 | $ 62,082 | $ 52,541 | $ 69,167 | $ 150,449 | $ 183,790 |
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net losses (gains) recognized during the period in net periodic benefit cost, net of taxes of $(190), $1,877, $(516) and $3,393, respectively | (446) | 5,606 | (1,160) | 10,229 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $163, $(1,839), $458 and $(3,320), respectively | 470 | (5,303) | 1,321 | (9,572) | ||||
Other comprehensive income (loss), net of taxes | (34,875) | (7,609) | 20,488 | (96,012) | (87,840) | (117,159) | (21,996) | (301,011) |
Comprehensive income (loss) attributable to Hawaiian Electric Industries, Inc. | 6,243 | (33,930) | 128,453 | (117,221) | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Net income for common stock | 43,461 | 45,299 | 47,009 | 49,764 | 44,135 | 46,409 | 135,769 | 140,308 |
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net losses (gains) recognized during the period in net periodic benefit cost, net of taxes of $(190), $1,877, $(516) and $3,393, respectively | (547) | 5,411 | (1,487) | 9,782 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $163, $(1,839), $458 and $(3,320), respectively | 470 | (5,303) | 1,321 | (9,572) | ||||
Other comprehensive income (loss), net of taxes | (77) | $ (44) | $ (45) | 108 | $ 51 | $ 51 | (166) | 210 |
Comprehensive income (loss) attributable to Hawaiian Electric Industries, Inc. | $ 43,384 | $ 49,872 | $ 135,603 | $ 140,518 |
Condensed Consolidated Statem_9
Condensed Consolidated Statements of Comprehensive Income (unaudited) - HECO (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax | $ (153) | $ 1,943 | $ (397) | $ 3,549 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, tax | 163 | (1,839) | 458 | (3,320) |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax | (190) | 1,877 | (516) | 3,393 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, tax | $ 163 | $ (1,839) | $ 458 | $ (3,320) |
Condensed Consolidated Balanc_3
Condensed Consolidated Balance Sheets (unaudited) - HECO - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Utility property, plant and equipment | ||
Total property, plant and equipment, net | $ 5,917,342 | $ 5,687,003 |
Current assets | ||
Cash and cash equivalents | 667,129 | 199,877 |
Restricted cash | 15,164 | 5,050 |
Other long-term assets | ||
Operating lease right-of-use assets | 99,466 | 115,684 |
Total assets | 16,991,818 | 16,284,244 |
Capitalization | ||
Retained earnings | 877,931 | 845,830 |
Accumulated other comprehensive income, net of taxes-retirement benefit plans | (358,024) | (336,028) |
Common stock equity | 2,224,354 | 2,202,499 |
Cumulative preferred stock — not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies (Notes 2 and 4) | ||
Current liabilities | ||
Short-term borrowings | 0 | 172,568 |
Interest and preferred dividends payable | 57,901 | 21,333 |
Deferred credits and other liabilities | ||
Deferred income taxes | 258,942 | 262,462 |
Total liabilities and shareholders’ equity | 16,991,818 | 16,284,244 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Utility property, plant and equipment | ||
Land | 52,098 | 52,060 |
Plant and equipment | 8,199,828 | 7,979,510 |
Right-of-use assets - finance lease | 124,372 | 48,371 |
Less accumulated depreciation | (3,222,030) | (3,086,499) |
Construction in progress | 357,289 | 275,353 |
Utility property, plant and equipment, net | 5,511,557 | 5,268,795 |
Nonutility property, plant and equipment, less accumulated depreciation of $39 and $63 as of September 30, 2023 and December 31, 2022, respectively | 6,942 | 6,945 |
Total property, plant and equipment, net | 5,518,499 | 5,275,740 |
Current assets | ||
Cash and cash equivalents | 274,854 | 39,242 |
Restricted cash | 2,000 | 0 |
Customer accounts receivable, net | 241,762 | 288,338 |
Accrued unbilled revenues, net | 179,327 | 183,280 |
Other accounts receivable, net | 89,823 | 13,567 |
Fuel oil stock, at average cost | 152,768 | 191,530 |
Materials and supplies, at average cost | 99,526 | 79,568 |
Prepayments and other | 54,538 | 33,482 |
Regulatory assets | 57,921 | 52,273 |
Total current assets | 1,152,519 | 881,280 |
Other long-term assets | ||
Operating lease right-of-use assets | 76,061 | 89,318 |
Regulatory assets | 173,276 | 190,240 |
Other | 158,092 | 160,889 |
Total other long-term assets | 407,429 | 440,447 |
Total assets | 7,078,447 | 6,597,467 |
Capitalization | ||
Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 17,854,278 shares at September 30, 2023 and December 31, 2022) | 119,048 | 119,048 |
Premium on capital stock | 810,955 | 810,955 |
Retained earnings | 1,450,325 | 1,411,306 |
Accumulated other comprehensive income, net of taxes-retirement benefit plans | 2,695 | 2,861 |
Common stock equity | 2,383,023 | 2,344,170 |
Cumulative preferred stock — not subject to mandatory redemption | 34,293 | 34,293 |
Long-term debt, net | 1,934,044 | 1,584,854 |
Total capitalization | 4,351,360 | 3,963,317 |
Commitments and contingencies (Notes 2 and 4) | ||
Current liabilities | ||
Current portion of operating lease liabilities | 17,012 | 19,095 |
Current portion of long-term debt, net | 99,996 | 99,962 |
Accounts payable | 201,699 | 202,492 |
Interest and preferred dividends payable | 30,058 | 17,176 |
Taxes accrued, including revenue taxes | 274,272 | 289,902 |
Regulatory liabilities | 26,325 | 31,475 |
Other | 163,307 | 85,596 |
Total current liabilities | 812,669 | 833,665 |
Deferred credits and other liabilities | ||
Operating lease liabilities | 66,299 | 78,715 |
Finance lease liabilities | 118,140 | 46,048 |
Deferred income taxes | 385,675 | 384,430 |
Regulatory liabilities | 1,075,449 | 1,024,175 |
Unamortized tax credits | 89,747 | 95,300 |
Defined benefit pension liability | 48,884 | 49,748 |
Other | 130,224 | 122,069 |
Total deferred credits and other liabilities | 1,914,418 | 1,800,485 |
Total liabilities and shareholders’ equity | 7,078,447 | 6,597,467 |
Hawaiian Electric Company, Inc. and Subsidiaries | Nonrelated Party | ||
Current liabilities | ||
Short-term borrowings | $ 0 | $ 87,967 |
Condensed Consolidated Balanc_4
Condensed Consolidated Balance Sheets (unaudited) - HECO (parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Shareholders’ equity | ||
Common stock, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares outstanding (in shares) | 110,086,035 | 109,470,795 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Utility property, plant and equipment | ||
Accumulated depreciation on other property, plant and equipment | $ 39 | $ 63 |
Shareholders’ equity | ||
Common stock, par value (in dollars per share) | $ 6.67 | $ 6.67 |
Common stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares outstanding (in shares) | 17,854,278 | 17,854,278 |
Condensed Consolidated State_10
Condensed Consolidated Statements of Changes in Common Stock Equity (unaudited) - HECO - USD ($) $ in Thousands | Total | Hawaiian Electric Company, Inc. and Subsidiaries | Common stock | Common stock Hawaiian Electric Company, Inc. and Subsidiaries | Premium on capital stock Hawaiian Electric Company, Inc. and Subsidiaries | Retained earnings | Retained earnings Hawaiian Electric Company, Inc. and Subsidiaries | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) Hawaiian Electric Company, Inc. and Subsidiaries |
Beginning balance (in shares) at Dec. 31, 2021 | 109,312,000 | 17,753,000 | |||||||
Beginning balance at Dec. 31, 2021 | $ 2,390,884 | $ 2,261,899 | $ 1,685,496 | $ 118,376 | $ 798,526 | $ 757,921 | $ 1,348,277 | $ (52,533) | $ (3,280) |
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 69,167 | 46,409 | 69,167 | 46,409 | |||||
Other comprehensive (loss) income, net of tax benefits | (117,159) | 51 | (117,159) | 51 | |||||
Common stock dividends | (38,301) | (31,475) | (38,301) | (31,475) | |||||
Ending balance (in shares) at Mar. 31, 2022 | 109,431,000 | 17,753,000 | |||||||
Ending balance at Mar. 31, 2022 | 2,303,642 | 2,276,884 | $ 1,684,547 | $ 118,376 | 798,526 | 788,787 | 1,363,211 | (169,692) | (3,229) |
Beginning balance (in shares) at Dec. 31, 2021 | 109,312,000 | 17,753,000 | |||||||
Beginning balance at Dec. 31, 2021 | 2,390,884 | 2,261,899 | $ 1,685,496 | $ 118,376 | 798,526 | 757,921 | 1,348,277 | (52,533) | (3,280) |
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 183,790 | 140,308 | |||||||
Other comprehensive (loss) income, net of tax benefits | (301,011) | 210 | |||||||
Common stock dividends | (94,425) | ||||||||
Ending balance (in shares) at Sep. 30, 2022 | 109,470,000 | 17,753,000 | |||||||
Ending balance at Sep. 30, 2022 | 2,162,922 | 2,307,992 | $ 1,689,672 | $ 118,376 | 798,526 | 826,794 | 1,394,160 | (353,544) | (3,070) |
Beginning balance (in shares) at Mar. 31, 2022 | 109,431,000 | 17,753,000 | |||||||
Beginning balance at Mar. 31, 2022 | 2,303,642 | 2,276,884 | $ 1,684,547 | $ 118,376 | 798,526 | 788,787 | 1,363,211 | (169,692) | (3,229) |
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 52,541 | 44,135 | 52,541 | 44,135 | |||||
Other comprehensive (loss) income, net of tax benefits | (87,840) | 51 | (87,840) | 51 | |||||
Common stock dividends | (38,301) | (31,475) | (38,301) | (31,475) | |||||
Ending balance (in shares) at Jun. 30, 2022 | 109,467,000 | 17,753,000 | |||||||
Ending balance at Jun. 30, 2022 | 2,233,504 | 2,289,595 | $ 1,688,009 | $ 118,376 | 798,526 | 803,027 | 1,375,871 | (257,532) | (3,178) |
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 62,082 | 49,764 | 62,082 | 49,764 | |||||
Other comprehensive (loss) income, net of tax benefits | (96,012) | 108 | (96,012) | 108 | |||||
Common stock dividends | (38,315) | (31,475) | (38,315) | (31,475) | |||||
Ending balance (in shares) at Sep. 30, 2022 | 109,470,000 | 17,753,000 | |||||||
Ending balance at Sep. 30, 2022 | $ 2,162,922 | 2,307,992 | $ 1,689,672 | $ 118,376 | 798,526 | 826,794 | 1,394,160 | (353,544) | (3,070) |
Beginning balance (in shares) at Dec. 31, 2022 | 109,470,795 | 109,471,000 | 17,854,000 | ||||||
Beginning balance at Dec. 31, 2022 | $ 2,202,499 | 2,344,170 | $ 1,692,697 | $ 119,048 | 810,955 | 845,830 | 1,411,306 | (336,028) | 2,861 |
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 54,721 | 47,009 | 54,721 | 47,009 | |||||
Other comprehensive (loss) income, net of tax benefits | 20,488 | (45) | 20,488 | (45) | |||||
Common stock dividends | (39,446) | (32,250) | (39,446) | (32,250) | |||||
Ending balance (in shares) at Mar. 31, 2023 | 109,572,000 | 17,854,000 | |||||||
Ending balance at Mar. 31, 2023 | $ 2,237,955 | 2,358,884 | $ 1,692,390 | $ 119,048 | 810,955 | 861,105 | 1,426,065 | (315,540) | 2,816 |
Beginning balance (in shares) at Dec. 31, 2022 | 109,470,795 | 109,471,000 | 17,854,000 | ||||||
Beginning balance at Dec. 31, 2022 | $ 2,202,499 | 2,344,170 | $ 1,692,697 | $ 119,048 | 810,955 | 845,830 | 1,411,306 | (336,028) | 2,861 |
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 150,449 | 135,769 | |||||||
Other comprehensive (loss) income, net of tax benefits | $ (21,996) | (166) | |||||||
Common stock dividends | (96,750) | ||||||||
Ending balance (in shares) at Sep. 30, 2023 | 110,086,035 | 110,086,000 | 17,854,000 | ||||||
Ending balance at Sep. 30, 2023 | $ 2,224,354 | 2,383,023 | $ 1,704,447 | $ 119,048 | 810,955 | 877,931 | 1,450,325 | (358,024) | 2,695 |
Beginning balance (in shares) at Mar. 31, 2023 | 109,572,000 | 17,854,000 | |||||||
Beginning balance at Mar. 31, 2023 | 2,237,955 | 2,358,884 | $ 1,692,390 | $ 119,048 | 810,955 | 861,105 | 1,426,065 | (315,540) | 2,816 |
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 54,610 | 45,299 | 54,610 | 45,299 | |||||
Other comprehensive (loss) income, net of tax benefits | (7,609) | (44) | (7,609) | (44) | |||||
Common stock dividends | (39,447) | (32,250) | (39,447) | (32,250) | |||||
Ending balance (in shares) at Jun. 30, 2023 | 109,612,000 | 17,854,000 | |||||||
Ending balance at Jun. 30, 2023 | 2,249,377 | 2,371,889 | $ 1,696,258 | $ 119,048 | 810,955 | 876,268 | 1,439,114 | (323,149) | 2,772 |
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 41,118 | 43,461 | 41,118 | 43,461 | |||||
Other comprehensive (loss) income, net of tax benefits | (34,875) | (77) | (34,875) | (77) | |||||
Common stock dividends | $ (39,455) | (32,250) | (39,455) | (32,250) | |||||
Ending balance (in shares) at Sep. 30, 2023 | 110,086,035 | 110,086,000 | 17,854,000 | ||||||
Ending balance at Sep. 30, 2023 | $ 2,224,354 | $ 2,383,023 | $ 1,704,447 | $ 119,048 | $ 810,955 | $ 877,931 | $ 1,450,325 | $ (358,024) | $ 2,695 |
Condensed Consolidated State_11
Condensed Consolidated Statements of Cash Flows (unaudited) - HECO - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation of property, plant and equipment | $ 200,722 | $ 190,075 |
Other amortization | 32,744 | 28,916 |
Deferred income taxes | (5,594) | (21,631) |
Allowance for equity funds used during construction | (11,073) | (7,431) |
Other | (5,315) | (5,392) |
Changes in assets and liabilities | ||
Decrease (increase) in fuel oil stock | 38,587 | (127,413) |
Decrease in regulatory assets | 13,908 | 34,278 |
Increase in regulatory liabilities | 32,454 | 29,294 |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (24,860) | 73,279 |
Decrease in defined benefit pension and other postretirement benefit plans liability | (6,722) | (4,228) |
Change in other assets and liabilities | (70,354) | (44,411) |
Net cash provided by operating activities | 475,138 | 212,987 |
Cash flows from investing activities | ||
Capital expenditures | (342,364) | (236,278) |
Other | 9,375 | 15,646 |
Net cash used in investing activities | (369,638) | (794,762) |
Cash flows from financing activities | ||
Common stock dividends | (112,957) | (114,917) |
Proceeds from issuance of long-term debt | 625,000 | 67,312 |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliates with original maturities of three months or less | (137,650) | 117,127 |
Other | (9,409) | (6,112) |
Net cash provided by financing activities | 371,866 | 449,491 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 477,366 | (132,284) |
Cash, cash equivalents and restricted cash, beginning of period | 204,927 | 311,462 |
Cash, cash equivalents and restricted cash, end of period | 682,293 | 179,178 |
Less: Restricted cash | (15,164) | (3,898) |
Cash and cash equivalents | 667,129 | 175,280 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Cash flows from operating activities | ||
Net income | 137,265 | 141,804 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation of property, plant and equipment | 182,781 | 175,921 |
Other amortization | 19,639 | 19,044 |
Deferred income taxes | (8,807) | (27,671) |
State refundable credit | (8,625) | (8,275) |
Bad debt expense | 3,937 | 4,406 |
Allowance for equity funds used during construction | (11,073) | (7,431) |
Other | 549 | 94 |
Changes in assets and liabilities | ||
Decrease (increase) in accounts receivable | 40,187 | (64,404) |
Decrease (increase) in accrued unbilled revenues | 3,759 | (91,256) |
Decrease (increase) in fuel oil stock | 38,762 | (125,647) |
Increase in materials and supplies | (19,958) | (5,702) |
Decrease in regulatory assets | 13,908 | 34,278 |
Increase in regulatory liabilities | 32,454 | 29,294 |
Increase in accounts payable | 26,967 | 18,108 |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (18,754) | 57,681 |
Decrease in defined benefit pension and other postretirement benefit plans liability | (6,202) | (3,647) |
Change in other assets and liabilities | (20,678) | (22,430) |
Net cash provided by operating activities | 406,111 | 124,167 |
Cash flows from investing activities | ||
Capital expenditures | (334,497) | (225,876) |
Other | 5,216 | 6,750 |
Net cash used in investing activities | (329,281) | (219,126) |
Cash flows from financing activities | ||
Common stock dividends | (96,750) | (94,425) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,496) | (1,496) |
Proceeds from issuance of long-term debt | 350,000 | 60,000 |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliates with original maturities of three months or less | (87,967) | 97,450 |
Payments of obligations under finance leases | (2,162) | (266) |
Other | (843) | (258) |
Net cash provided by financing activities | 160,782 | 61,005 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 237,612 | (33,954) |
Cash, cash equivalents and restricted cash, beginning of period | 39,242 | 55,258 |
Cash, cash equivalents and restricted cash, end of period | 276,854 | 21,304 |
Less: Restricted cash | (2,000) | 0 |
Cash and cash equivalents | $ 274,854 | $ 21,304 |
Basis of presentation
Basis of presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information, the instructions to SEC Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the unaudited condensed consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. The accompanying unaudited condensed consolidated financial statements and the following notes should be read in conjunction with the audited consolidated financial statements and the notes thereto in HEI’s and Hawaiian Electric’s Form 10-K for the year ended December 31, 2022. In the opinion of HEI’s and Hawaiian Electric’s management, the accompanying unaudited condensed consolidated financial statements contain all material adjustments required by GAAP to fairly state consolidated HEI’s and Hawaiian Electric’s financial positions as of September 30, 2023 and December 31, 2022 and the results of their operations for the three and nine months ended September 30, 2023 and 2022 and cash flows for the nine months ended September 30, 2023 and 2022. All such adjustments are of a normal recurring nature, unless otherwise disclosed below or in other referenced material. Results of operations for interim periods are not necessarily indicative of results for the full year. Recent accounting pronouncements. Credit Losses. In March 2022, Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2022-02, “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the accounting guidance for Troubled Debt Restructurings (TDRs) by creditors in Subtopic 310-40, Receivables-Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 to determine whether a modification results in a new loan or a continuation of an existing loan. The amendments in this update also require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments-Credit Losses-Measured at Amortized Cost.” Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 325-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivable by year of origination. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. ASB updated the accounting for certain loan refinancings and restructurings, and included the required disclosures in the Notes herein in accordance with ASU No. 2022-02. |
Maui windstorm and wildfires
Maui windstorm and wildfires | 9 Months Ended |
Sep. 30, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Maui windstorm and wildfires | Maui windstorm and wildfires On August 8, 2023, a number of brush fires in the West Maui (Lahaina) and Upcountry Maui areas, caused widespread property damage, including damage to property of the Utilities, and at least 99 fatalities in Lahaina (the Maui windstorm and wildfires). The Maui windstorm and wildfires were fueled by extreme winds and drought-like conditions in those parts of Maui. According to the County of Maui, in addition to the loss of life, over 3,450 acres burned and over 2,500 structures were destroyed. In Lahaina, a fire was reported at about 6:30 a.m. (the “Morning Fire”) and appears to have been caused by power lines that fell in high winds and spread into a field near the Intermediate School. The Maui County Fire Department responded promptly to the Morning Fire, and according to the Fire Department’s public statement that morning, by 9 a.m. the Morning Fire was “100% contained.” The Maui County fire chief subsequently reported that the Fire Department had determined that the Morning Fire was “extinguished.” Shortly before 3 p.m. that day, while the power remained off, Utility crew members saw a small fire in the same field about 75 yards away from Lahainaluna Road. They immediately called 911 and reported the fire (the “Afternoon Fire”). At the time of the Afternoon Fire, the Company’s power lines in the area where that fire ignited were not energized and had not been energized for more than six hours. By the time the Maui County Fire Department arrived back on the scene, it was not able to contain the Afternoon Fire and it spread out of control toward Lahaina. No determination as to the cause of the Afternoon Fire has been made. The Company believes that most of the property damage and all of the fatalities are from the Afternoon Fire. The circumstances surrounding the Maui windstorm and wildfires are currently the subject of several investigations. As of September 30, 2023, on a consolidated basis, the Company has incurred $27.6 million of incremental expenses related to the Maui windstorm and wildfires, which excludes the $75 million contribution and insurance receivable as discussed in Subsequent event - One ‘Ohana Initiative below. In addition, the Utilities incurred $8.0 million of total capital costs related to the Maui windstorm and wildfires. Restoration costs and recoveries. The Utilities have since restored electric service to more than 95% of homes and businesses on the island of Maui that were affected by the Maui windstorm and wildfires. Replacement of poles, transformers, power lines and other equipment in and around Lahaina and Upcountry Maui that were damaged is ongoing. On August 21, 2023, Maui Electric filed an application with the Public Utilities Commission of the State of Hawaii (PUC), requesting the PUC’s approval for the deferral accounting treatment for incremental non-labor expenses related to the Utilities’ response and restoration efforts and other expenses arising from and associated with the Maui windstorm and wildfires, beginning from August 8, 2023 and until December 31, 2024, to preserve the Utilities’ ability to seek cost recovery through a separate request when the total costs and impacts are better known. On October 13, 2023, the Utilities filed an amended application to add Hawaiian Electric and Hawaii Electric Light as applicants. As of September 30, 2023, the amended application was subject to the PUC’s approval and no costs have been deferred. While the Utilities plan to seek recovery of damage to covered electrical infrastructure under their insurance programs, the timing and amount of any insurance recoveries are not determinable at this time and as such, an insurance receivable has not been recorded as of the date of this filing. The Company’s property insurance has a total policy limit of $500 million with a $1 million retention for damages related to Utility-owned non-generating assets, including overhead transmission and distribution assets within 1,000 feet of such assets. The Utilities believe capital expenditures related to restoration that are not covered by insurance will be managed under their current regulatory mechanisms, the recovery of which would be subject to PUC approval. ASB’s Lahaina branch, including most of its contents and automated teller machine, was destroyed in the fire. The Bank leased the property of its Lahaina location. Third-party claims and other proceedings. Multiple civil and class action lawsuits related to the Maui windstorm and wildfires have been filed in the Maui and Oahu Circuit Courts against HEI, the Utilities, and other defendants, including the County of Maui, the State of Hawaii and related state entities, private landowners and developers, and telecommunications companies (collectively “tort-related legal claims”). Most of these lawsuits allege that the defendants were responsible for, and/or negligent in failing to prevent or respond to the wildfires that led to the property destruction and loss of life. Other claims include, among other things, personal injury, wrongful death, emotional distress and inverse condemnation. One lawsuit asserting similar theories and claims was filed by the County of Maui against HEI and the Utilities. Additional lawsuits may be filed against the Company and other defendants in the future. The plaintiffs seek to recover damages and other costs, including punitive damages. For a discussion of the Company’s assessment of potential exposure to claims, see Subsequent event - One ‘Ohana Initiative below. On August 24, 2023, a putative securities class action captioned Bhangal v. Hawaiian Electric Industries, Inc., et al., No.: 3:23-cv-04332-JSC was filed in the United States District Court for the Northern District of California. The lawsuit alleges violations of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder against HEI and certain of its current and former officers, and Section 20(a) of the Exchange Act against certain of HEI’s current and former officers. Plaintiff broadly alleges that HEI and certain of its current and former officers made materially false and misleading statements or omissions regarding HEI’s wildfire prevention and safety protocols and related matters. Plaintiffs seek unspecified monetary damages. On October 5, 2023, the court entered an order extending Defendants’ time to respond to the complaint until after a lead plaintiff has been appointed by the court in accordance with relevant procedures of the Private Securities Litigation Reform Act of 1995 and Defendants have not yet responded to the complaint. A hearing on competing motions for appointment of lead plaintiff is scheduled for November 30, 2023. The Company intends to vigorously defend against this action. There is no assurance that the Company will be successful in the defense of the litigation or that insurance will be available or adequate to fund any potential settlement or judgment or the litigation costs of the action. The Company is unable to predict the outcome or reasonably estimate a range of possible loss at this time. Also, on September 11, 2023, a putative shareholder derivative action captioned Rice v. Connors, et al., No. 1CCV-23-0001181 was filed in the Circuit Court of the First Circuit, State of Hawai‘i. This action is purportedly brought by a shareholder on behalf of nominal defendants HEI and Hawaiian Electric against certain current and former officers and directors of HEI and Hawaiian Electric. Plaintiff asserts Hawai‘i state law breach of fiduciary duty, abuse of control, corporate waste and unjust enrichment claims allegedly arising from the fires that occurred on Maui in August 2023 and certain of HEI’s prior public disclosures. Plaintiff seeks, on behalf of HEI and Hawaiian Electric, compensatory and punitive damages, restitution and equitable relief in the form of changes to HEI’s corporate governance, policies and culture. On October 27, 2023, the plaintiff filed an amended complaint adding claims for aiding and abetting state law breach of fiduciary duty, and for purported violations of Hawai‘i’s Nonprofit Corporations Act §414D-302. Defendants have not yet been served, and no substantive proceedings have occurred. While the Company has obligations to indemnify and/or advance the defendants’ legal fees and costs in connection with this lawsuit, any monetary recovery in the derivative litigation should accrue to the Company. The Company is unable to predict the ultimate outcome and is unable to make a meaningful estimate of the amount or range of loss, if any, that could result from any unfavorable outcome. Legal costs in connection with the litigation and loss contingencies are expensed as incurred. For the three months ended September 30, 2023, the Company incurred and accrued $10.8 million ($6.3 million by the Utilities) of legal expenses to address these lawsuits and other legal matters related to the Maui windstorm and wildfires. The Company has $165 million of excess liability insurance for third party claims, including claims related to wildfires, with a possible retention of up to $1.5 million. Reimbursement of legal costs under the policy are recorded as a reduction of expense when probable and reasonably estimable. Subsequent event - One ‘Ohana Initiative. On November 8, 2023, Hawaii Governor Josh Green announced the One ‘Ohana Initiative (the Initiative) as a collective path forward to recovery from the Maui windstorm and wildfires. The Initiative is a new humanitarian aid fund expected to exceed $150 million, with the objective to compensate, in an expedited manner, those who have lost loved ones and those who have suffered severe injuries in the Maui windstorm and wildfires. The Initiative provides an alternative to a lengthy and expensive legal process. Beneficiaries are anticipated to receive payments of more than $1 million each as early as the second quarter of 2024 after an administrator is selected and processes are established. In exchange for receiving such a payment, beneficiaries will be required to waive their ability to pursue legal claims for wrongful death and severe injuries. Hawaiian Electric fully supports this humanitarian initiative and has pledged to contribute up to $75 million. The Governor announced that other parties, including the State of Hawaii, the County of Maui, and Kamehameha Schools have all agreed to contribute to the fund, and additional contributions from other parties are possible. Hawaiian Electric’s contribution to the Initiative will be less than half of the total, and Hawaiian Electric's insurance carriers have agreed to fund its share of the contributions to the fund. Hawaiian Electric’s contribution is reflective of its commitment to join with community partners to provide solutions to promote Maui’s recovery. Hawaiian Electric’s commitment to contribute to the Initiative is not an admission of guilt or reflection of fault or liability related to the wildfires. In connection with its commitment to contribute to the Initiative, the Utilities accrued, as of September 30, 2023, $75 million, and concurrently, recorded an insurance reimbursement receivable of an equivalent amount as the recovery of the Utilities’ contribution to the Initiative under its excess liability insurance policy is deemed probable. The Initiative contemplates additional phases, including a process to potentially resolve remaining tort-related legal claims, as well as seeking legislation to reduce wildfire risk and provide financial support to help ensure a strong energy future for all of Hawaii. While the Utilities plan to participate in a process with the State and community partners to explore solutions to support Maui’s recovery and compensate victims for damages, the Utilities are unable to reasonably estimate any additional potential loss, or range of loss. If additional liabilities were to be incurred, the loss could be material to the Utilities’ results of operations, financial positions and cash flows. If any such losses were to be sufficiently high, the Utilities may not have liquidity or the ability to access liquidity at levels necessary to satisfy such losses. The Utilities charged the pending contribution to expense, included in “Expenses-Other operation and maintenance” and “Expenses-Electric utility” in the Hawaiian Electric and subsidiaries Condensed Consolidated Statements of Income and HEI and subsidiaries’ Condensed Consolidated Statements of Income, respectively, which was offset by the probable insurance recovery. (in millions) September 30, 2023 2023 Maui windstorm and wildfires One ‘Ohana Initiative contribution 1 $ 75 Insurance recovery 2 (75) 1 As of September 30, 2023, One ‘Ohana Initiative contribution is included in “Current liabilities-Other” and “Liabilities-Other” in the Hawaiian Electric and subsidiaries’ Condensed Consolidated Balance Sheet and HEI and subsidiaries’ Condensed Consolidated Balance Sheet, respectively. 2 As of September 30, 2023, One ‘Ohana Initiative insurance recoveries is included in “Current assets-Other accounts receivables, net” and “Assets-Accounts receivable and unbilled revenues, net” in the Hawaiian Electric and subsidiaries’ Condensed Consolidated Balance Sheet and HEI and subsidiaries’ Condensed Consolidated Balance Sheet, respectively. |
Segment financial information
Segment financial information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment financial information | Segment financial information (in thousands) Electric utility Bank Other Total Three months ended September 30, 2023 Revenues $ 794,987 $ 100,974 $ 5,912 $ 901,873 Income (loss) before income taxes $ 55,415 $ 12,749 $ (19,054) $ 49,110 Income taxes (benefit) 11,456 1,384 (5,319) 7,521 Net income (loss) 43,959 11,365 (13,735) 41,589 Preferred stock dividends of subsidiaries 498 — (27) 471 Net income (loss) for common stock $ 43,461 $ 11,365 $ (13,708) $ 41,118 Nine months ended September 30, 2023 Revenues $ 2,419,539 $ 291,716 $ 14,540 $ 2,725,795 Income (loss) before income taxes $ 175,391 $ 61,511 $ (48,121) $ 188,781 Income taxes (benefit) 38,126 11,380 (12,591) 36,915 Net income (loss) 137,265 50,131 (35,530) 151,866 Preferred stock dividends of subsidiaries 1,496 — (79) 1,417 Net income (loss) for common stock $ 135,769 $ 50,131 $ (35,451) $ 150,449 Total assets (at September 30, 2023) $ 7,078,447 $ 9,657,428 $ 255,943 $ 16,991,818 Three months ended September 30, 2022 Revenues $ 955,971 $ 81,411 $ 4,815 $ 1,042,197 Income (loss) before income taxes $ 63,712 $ 27,281 $ (11,088) $ 79,905 Income taxes (benefit) 13,450 6,525 (2,623) 17,352 Net income (loss) 50,262 20,756 (8,465) 62,553 Preferred stock dividends of subsidiaries 498 — (27) 471 Net income (loss) for common stock $ 49,764 $ 20,756 $ (8,438) $ 62,082 Nine months ended September 30, 2022 Revenues from external customers and other sources $ 2,483,632 $ 231,850 $ 7,390 $ 2,722,872 Intersegment revenues (eliminations) 4 — (4) — Revenues $ 2,483,636 $ 231,850 $ 7,386 $ 2,722,872 Income (loss) before income taxes $ 179,771 $ 79,605 $ (25,774) $ 233,602 Income taxes (benefit) 37,967 17,513 (7,085) 48,395 Net income (loss) 141,804 62,092 (18,689) 185,207 Preferred stock dividends of subsidiaries 1,496 — (79) 1,417 Net income (loss) for common stock $ 140,308 $ 62,092 $ (18,610) $ 183,790 Total assets (at December 31, 2022) $ 6,597,467 $ 9,545,970 $ 140,807 $ 16,284,244 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. Sales from Hamakua Energy, LLC (Hamakua Energy) to Hawaii Electric Light (a regulated affiliate) are eliminated in consolidation. |
Electric utility segment
Electric utility segment | 9 Months Ended |
Sep. 30, 2023 | |
Electric Utility Subsidiary [Abstract] | |
Electric utility segment | Electric utility segment Unconsolidated variable interest entities. Power purchase agreements . As of September 30, 2023, the Utilities had four power purchase agreements (PPAs) for firm capacity 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) and Hamakua Energy by reason of the provisions of the PPA that the Utilities have with the two IPPs. However, management has concluded that the Utilities are not the primary beneficiary of Kalaeloa and Hamakua Energy because the Utilities do not have the power to direct the activities that most significantly impact the two 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 and Hamakua Energy in its condensed consolidated financial statements. However, Hamakua Energy is an indirect subsidiary of Pacific Current and is consolidated in HEI’s condensed consolidated financial statements. Commitments and contingencies. Contingencies . The Utilities are subject in the normal course of business to legal, regulatory and environmental proceedings. Excluding the potential liabilities from the Maui windstorm and wildfires, 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. The Utilities record loss contingencies when the outcome of such proceedings is probable and when the amount of the loss is reasonably estimable. The Utilities also evaluate, on a continuous basis, whether developments in such proceedings could cause these assessments or estimates to change. Assessment regarding future events is required when evaluating whether a loss is probable or reasonably possible, and as to whether such loss or a range of such loss is estimable. Management is often unable to estimate a reasonably possible loss, or a range of loss, particularly in cases in which: (i) the damages sought are indeterminate or the basis for the damages claimed is not clear; (ii) proceedings are in early stages; (iii) discovery is not complete; (iv) the matters involve novel or unsettled legal theories; (v) significant facts are in dispute; (vi) a large number of parties are represented (including circumstances in which it is uncertain how liability, if any, would be shared among multiple defendants); (vii) a lower court or administrative agency’s decision or ruling has been appealed; and/or (vii) a wide range of potential outcomes exist. In such cases, there may be considerable uncertainty regarding the timing or ultimate resolution, including any possible loss, fine, penalty, or business impact. August 2023 Maui windstorm and wildfires . See Note 2 of the Condensed Consolidated Financial Statements Power purchase agreements . Purchases from all IPPs were as follows: Three months ended September 30 Nine months ended September 30 (in millions) 2023 2022 2023 2022 Kalaeloa $ 77 $ 101 $ 211 $ 244 AES Hawaii 1 — 21 — 82 HPOWER 17 18 51 56 Hamakua Energy 13 16 52 46 Puna Geothermal Venture 7 13 24 37 Wind IPPs 42 37 99 93 Solar IPPs 21 18 57 44 Other IPPs 2 1 1 5 5 Total IPPs $ 178 $ 225 $ 499 $ 607 1 The term of the PPA with AES Hawaii expired on September 1, 2022 and the AES Hawaii coal plant ceased operations. 2 Includes hydro power and other PPAs. Kalaeloa Partners, L.P. Under a 1988 PPA, as amended, Hawaiian Electric is committed to purchase 208 MW of firm capacity from Kalaeloa. 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. The Amended and Restated PPA was approved by the PUC on November 23, 2022. The new pricing provisions in the Amended and Restated PPA took effect on January 1, 2023. Stage 1 Renewable PPAs. In February 2018, the Utilities issued their Stage 1 renewable request for proposals and have procured eight renewable PPAs with a total of 274.5 MW capacity. The total annual payments to be made by the Utilities under the eight renewable PPAs are estimated at $71.2 million. The Utilities have received PUC approvals to recover the total projected annual payments under the eight renewable PPAs through the purchased power adjustment clause (PPAC) to the extent such costs are not included in base rates. The Utilities have accounted for the battery portion of three PPAs that were placed in service, including the AES Waikoloa Solar project that began commercial operation on April 21, 2023, which has a capacity of 30 MW with 120 MWh batteries, as finance leases and recorded lease liabilities with corresponding right-of-use assets of $124 million. The timing of the Utilities’ recognition of the expense conforms to ratemaking treatment for the Utilities’ recovery of the cost of electricity and is included in purchased power for the interest and amortization of financing leases related to PPAs. Any material differences between expense recognition and timing of payments are deferred as a regulatory asset or liability in order to match what is being recovered for ratemaking purposes. 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 the termination of the original PPA. Following the termination, Hu Honua filed a lawsuit in the U.S. District Court for the District of Hawaii. The parties reached a settlement that provided that they would execute an amended and restated PPA dated May 9, 2017, provided that the amended and restated PPA was still subject to PUC approval. On May 23, 2022, the PUC issued a decision and order denying the amended and restated PPA, based on, among other things, findings that: (1) the project will result in significant greenhouse gas (GHG) emissions, (2) Hu Honua’s proposed carbon commitment to sequester more GHG emissions than produced by the project are speculative and unsupported, (3) the amended and restated PPA is likely to result in high costs to customers through its relatively high cost of electricity and through potential displacement of other, lower cost, renewable resources, and (4) based on the foregoing, approving the amended and restated PPA is not prudent or in the public interest. On June 2, 2022, Hawaii Electric Light and Hu Honua filed their separate motions for reconsideration, which were denied by the PUC on June 24, 2022. On June 29, 2022, Hu Honua filed its notice of appeal to the Hawaii Supreme Court of the PUC’s May 23, 2022 decision and order denying the amended and restated PPA. On March 13, 2023, the Hawaii Supreme Court affirmed the PUC’s decision denying the amended and restated PPA between Hu Honua and Hawaii Electric Light and entered its judgment on appeal on April 12, 2023. On June 7, 2023, Hu Honua filed a status report with the U.S. District Court for the District of Hawaii, stating, among other things, that because settlement of the underlying federal lawsuit was contingent on timely, non-appealable, final approval of the amended and restated PPA by the PUC, that the Hawaii Supreme Court’s opinion made fulfillment of the condition impossible, and therefore the settlement agreement between the Hawaiian Electric defendants (HEI, Hawaiian Electric, and Hawaii Electric Light) and Hu Honua is null and void and of no further effect. Furthermore, Hu Honua indicated that it intends to reassert its federal antitrust and other claims against the Hawaiian Electric defendants. Hu Honua also stated that to take into account the numerous relevant events which have occurred since its filing of its second amended complaint on January 29, 2018, Hu Honua intends to move for leave to file an amended and supplemental complaint. Hu Honua has yet to file a motion for leave. 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 a Notice of Default and Termination of the PPA to MNEP terminating the PPA with an effective date of July 10, 2020. Thereafter, MNEP filed an amended complaint to include claims relating to the termination and Hawaiian Electric filed its answer to the amended complaint on September 11, 2020, disputing the facts presented by MNEP and all claims within the original and amended complaint. Currently, the discovery phase is ongoing. Utility projects . Many public utility projects require PUC approval and various permits from other governmental agencies. Difficulties in obtaining, or the inability to obtain, the necessary approvals or permits or community support can result in significantly increased project costs or even cancellation of projects. In the event a project does not proceed, or if it becomes probable the PUC will disallow cost recovery for all or part of a project, or if PUC-imposed caps on project costs are expected to be exceeded, project costs may need to be written off in amounts that could result in significant reductions in Hawaiian Electric’s consolidated net income. Waena Switchyard/Synchronous Condenser Project. In October 2020, to support efforts to increase renewable energy generation and reduce fossil fuel consumption by deactivating current generating units, Maui Electric filed a PUC application to construct a switchyard, which includes the extension of two 69 kV transmission lines and the relocation of another 69 kV transmission line; and the conversion of two generating units to synchronous condensers at Kahului Power Plant in central Maui. In November 2021, the PUC approved Maui Electric’s request to commit funds estimated at $38.8 million for the project, and to recover capital expenditures for the project under Exceptional Project Recovery Mechanism (EPRM) not to exceed $38.8 million, which shall be further reduced to reflect the total project cost exclusive of overhead costs not directly attributable to the project. The Waena Switchyard was placed in service on October 25, 2023. The conversion of the two generating units will be performed after the retirement of Kahului Power Plant Units 3 and 4, which is targeted for the end of 2027. In approving the project, the PUC recognized that the project will facilitate the ability to accommodate increased renewable energy, as contemplated under the EPRM guidelines. As of September 30, 2023, $24.7 million has been incurred for the project. 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 and left the property in 1987. The federal Environmental Protection Agency (EPA) has since identified environmental impacts in the subsurface soil at the Site. In cooperation with the State of Hawaii Department of Health and EPA, Maui Electric further investigated the Site and the adjacent parcel to determine the extent of impacts of polychlorinated biphenyls (PCBs), residual fuel oils and other subsurface contaminants. Maui Electric has a reserve balance of $2.6 million as of September 30, 2023, 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. Additionally, 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 (removed to the U.S. District Court for the District of Hawaii). The complaint, which was subsequently amended to include Maui Electric, alleges that Hawaiian Electric is responsible for remediation of the Site based on the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), and the Hawaii Environmental Response Law under Hawaii Revised Statutes Chapter 128D, as well as being liable on contractual claims related to a short leaseback period during the transition of ownership from Molokai Electric. On August 24, 2023, a settlement was reached between the parties. 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 under CERCLA responsible for the costs of investigation and cleanup of PCB contamination in sediment in the area offshore of the Waiau Power Plant as part of the Pearl Harbor Superfund Site. Hawaiian Electric was also required by the EPA to assess potential sources and extent of PCB contamination onshore at Waiau Power Plant. As of September 30, 2023, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $9.7 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. Kapolei pipeline . James Campbell Company (JCC) through its wholly owned subsidiary, Aina Nui Corporation discovered petroleum contamination in ground water during construction of a project in Kapolei in late 2022 and incurred approximately $0.8 million in remediation costs. JCC made a joint demand for these costs in June 2023 to the two companies, including Hawaiian Electric, that have pipelines in the area of the contamination. This demand was updated on September 1, 2023 to $1.2 million to incorporate additional costs. Based on the nature of the contamination, it is not clear whether it is consistent with what was in the Utilities’ pipelines or is wholly or partially the responsibility of the other pipeline owner. At this time, the parties are engaging in settlement discussions and the Utilities are unable to determine the ultimate outcome or the amount of any possible loss. 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. Decoupling delinks the utility’s revenues from the utility’s sales, removing the disincentive to promote energy efficiency and accept more renewable energy. Decoupling continues under the PBR Framework. Performance-based regulation framework. On December 23, 2020, the PUC issued a decision and order (PBR D&O) establishing the PBR Framework to govern the Utilities. The PBR Framework incorporates an annual revenue adjustment (ARA) and a suite of new regulatory mechanisms in addition to previously established regulatory mechanisms. Under the PBR Framework, the decoupling mechanism (i.e., the Revenue Balancing Account (RBA)) established by the previous regulatory framework will continue. The existing cost recovery mechanisms will continue as currently implemented (e.g., the Energy Cost Recovery Clause, PPAC, Demand Side Management surcharge, Renewable Energy Infrastructure Program, Demand Response Adjustment Clause, Pension and Other Post-Employment Benefits (OPEB) tracking mechanisms). In addition to annual revenues provided by the ARA, the Utilities may seek relief for extraordinary projects or programs through the Exceptional Project Recovery Mechanism (EPRM) (formerly known as the Major Project Interim Recovery adjustment mechanism) and earn financial rewards for exemplary performance as provided through a portfolio of Performance Incentive Mechanisms (PIMs) and Shared Savings Mechanisms (SSMs). The PBR Framework incorporates a variety of additional performance mechanisms, including Scorecards, Reported Metrics, and an expedited Pilot Process. The PBR Framework also contains a number of safeguards, including a symmetric Earnings Sharing Mechanism (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 PBR Framework became fully effective on June 1, 2021. On June 17, 2022, the PUC issued a decision and order (June 2022 D&O) establishing additional PIMs under the PBR Framework for the Utilities. The June 2022 D&O approved two new PIMs, a new SSM, and extended the timeframe for an existing PIM. Specifically, the PUC approved (1) a new (penalty-only) generation-caused interruption reliability PIM, (2) a new (penalty/reward) interconnection requirements study (IRS) PIM, (3) a new (reward-only) Collective Shared Savings Mechanism (CSSM), and (4) a modification and extension of the existing Interim Grid Services PIM (reward-only). On November 23, 2022, the PUC approved the Utilities’ proposed tariffs to implement the aforementioned PIMs with an effective date of January 1, 2023. In addition, the June 2022 D&O instructed the Utilities to prepare and submit: a detailed fossil fuel retirement report (FF Retirement Report) outlining necessary steps to safely and reliably retire certain existing fossil fuel power plants during the first multi-year rate period (MRP); and a functional integration plan (FIP) for distributed energy resources (DER) to increase transparency into the Utilities’ plans and progress for utilizing cost-effective grid services from DERs and ensure that the necessary functionalities and requisite technologies are in place to do so. The PUC also instructed the PBR Working Group to continue its ongoing collaborative efforts to consider other potential new incentive mechanisms and to address other issues raised during the proceeding. On March 30, 2023, the PUC held a PBR Working Group coordination meeting to initiate subgroups on the Long-Term Grid Services PIM, modification/evaluation of existing PIMs, and comprehensive PBR Framework review priority topics. In accordance with the June 2022 D&O, the Utilities filed their FIP on September 30, 2022, Long-Term Grid Services PIM proposal on July 3, 2023, and FF Retirement Report on October 13, 2023. On October 16, 2023, the Utilities filed a request for limited suspension of the Transmission and Distribution (T&D) System Average Interruption Duration Index (SAIDI) PIM, the T&D System Average Interruption Frequency Index (SAIFI) PIM, and the target heat rate provision of Maui Electric Maui Division’s Energy Cost Recovery Clause (ECRC) tariff starting from August 8, 2023. The Utilities requested PUC approval of the suspension request by December 28, 2023. On November 3, 2023, the Utilities, Ulupono Initiative LLC, and the County of Hawaii filed a stipulation on proposed modifications to the RPS-A, Call Center, AMI Utilization, and IRS PIM. The proposed PIM tariff modifications are intended to become effective on January 1, 2024, to the extent they can be approved by December 31, 2023. A decision on the stipulation is pending PUC approval. Revenue adjustment mechanism . Prior to the implementation of the PBR Framework, the revenue adjustment mechanism (RAM) was a major component of the previously established regulatory framework. The RAM was 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). Under the PBR Framework, the ARA mechanism replaced the RAM, and became effective on June 1, 2021. RAM revenue adjustments approved by the PUC in 2020 will continue to be included in the RBA provision’s target revenue and RBA rate adjustment unless modified with PUC approval. Annual revenue adjustment mechanism . The PBR Framework established a five-year MRP 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 at a rate of $6.6 million per year from 2021 to 2025. The implementation of the ARA occurred on June 1, 2021. Pursuant to PUC orders, the Utilities deferred certain COVID-19 related costs in regulatory asset accounts through December 31, 2021. In June 2022, the Utilities submitted an application to seek recovery of the COVID-19 related deferred costs, not to exceed the amount of $27.8 million, through the Z-factor over three years. Annual requests will be limited to actual costs incurred. The Utilities also proposed to accelerate flow-through of the Enterprise Resource Planning system benefits savings currently tracked in regulatory liability accounts to Hawaii Electric Light and Maui Electric customers as part of the customer dividend in the ARA if the PUC approves the application. As of September 30, 2023 , the Utilities have recorded $8.8 million in regulatory assets for deferral of COVID-19 related costs. The updated amounts have been reflected in the Utilities’ COVID-19 Quarterly Reports to the PUC filed on October 31, 2023. Earnings sharing mechanism . The PBR Framework established a symmetrical ESM for achieved rate-making ROACE outside of a 300 basis points dead band above or below the current authorized ROACE of 9.5% for each of the Utilities. There is a 50/50 sharing between customers and Utilities for the achieved rate-making ROACE falling within 150 basis points outside of the dead band in either direction, and a 90/10 sharing for any further difference. A reopening or review of the PBR terms may be triggered if the Utilities credit rating outlook indicates a potential credit downgrade below investment grade status, or if its achieved rate-making ROACE enters the outer most tier of the ESM. On August 31, 2023, the PUC issued an order temporarily suspending the ESM until further notice. The intent of the order is to address the unintended consequence of customers potentially bearing the costs associated with the Maui windstorm and wildfires through the operation of the ESM without prior PUC review. Exceptional project recovery mechanism . Prior to the implementation of the PBR Framework, the PUC established the Major Project Interim Recovery (MPIR) adjustment mechanism and MPIR Guidelines. The MPIR mechanism provides the opportunity to recover revenues for net costs of approved eligible projects placed in service between general rate cases. In establishing the PBR Framework, the MPIR Guidelines were terminated and replaced with the EPRM Guidelines. Although the MPIR Guidelines were terminated and replaced by the EPRM Guidelines, the MPIR mechanism will continue within the PBR Framework to provide recovery of project costs previously approved for recovery under the MPIR. The established EPRM Guidelines permit the Utilities to include the full amount of approved costs in the EPRM for recovery in the first year the project goes into service, pro-rated for the portion of the year the project is in service. Deferred and O&M expense projects are also eligible for EPRM recovery under the EPRM Guidelines. EPRM recoverable costs will be limited to the lesser of actual incurred project costs or PUC‑approved amounts, net of savings. As of September 30, 2023, the Utilities annualized MPIR and EPRM revenue amounts totaled $31.1 million, including revenue taxes, for the Schofield Generating Station ($16.5 million), West Loch PV project ($3.3 million), Grid Modernization Strategy (GMS) Phase 1 project ($11.2 million for all three utilities) and Waiawa UFLS project ($0.1 million) that included the 2023 return on project amount (based on approved amounts) in rate base, depreciation and incremental O&M expenses. The PUC approved the Utilities’ recovery of the annualized 2023 MPIR amounts for the Schofield Generating Station, West Loch PV, GMS Phase 1, and Waiawa UFLS projects effective June 1, 2023 through the RBA rate adjustment. As of September 30, 2023, the PUC approved two EPRM applications for projects totaling $41 million to the extent that the project costs are not included in rates. Currently, the Utilities are seeking EPRM recovery for five projects with total project costs up to $488 million, subject to PUC approval. Pilot process . As part of the PBR Framework, the PUC approved a Pilot Process to foster innovation by establishing an expedited implementation process for pilots that tests new technologies, programs, business models, and other arrangements. Under the Pilot Process, the Utilities submit specific pilot proposals (Pilot Notices) that are within the scope of the approved Workplan to the PUC for their expedited review. The PUC will strive to issue an order addressing a proposed pilot within 45 days of the filing date of a Pilot Notice. If the PUC does not take affirmative action on a Pilot Notice by the end of the 45-day period, the Pilot Notice shall be considered approved as submitted. The PUC may modify the pilot as originally proposed, and the Utilities shall have 15 days to notify the PUC whether the Utilities accept the modification, propose further modification, or withdraw the Pilot Notice. The PUC may also, where necessary, suspend the Pilot Notice for further investigation. The approved Pilot Process includes a cost recovery process that generally allows the Utilities to defer and recover total annual expenditures of approved pilot projects net of revenues, subject to an annual cap of $10 million, over 12 months beginning June 1 of the year following pilot implementation through the RBA rate adjustment, although the PUC may determine on a case-by-case basis that a particular project’s deferred costs should be amortized over a period greater than 12 months. On February 28, 2023, the Utilities filed their annual Pilot Update report covering pilot projects that were active during 2022, including reporting on pilot projects that were initiated prior to the commencement of the Pilot Process. The Pilot Update reported on approximately $0.4 million of 2022 recorded pilot project costs including revenue taxes for the Utilities. The 2022 recorded pilot project costs were included in the Utilities’ proposed adjustments to target revenue in the 2023 spring revenue report filed on March 28, 2023. On March 22, 2023, the PUC issued an order temporarily suspending the filing of Pilot Notices, pending a stakeholder meeting which was convened on June 15, 2023 to discuss potential improvements to the Pilot Process. On July 28, 2023, the PUC issued an order providing additional guidance on the Pilot Process, specifying expectations for future Pilot Notices submitted pursuant to the Pilot Process. The order lifted the temporary suspension on submitting Pilot Notices and the Utilities may file Pilot Notices consistent with the approved Workplan. Performance incentive mechanisms . The PUC has established the following PIMs and SSMs: (1) Service Quality performance incentives, (2) Phase 1 Request for proposal (RFP) PIM for procurement of low-cost renewable energy, (3) Phase 2 RFP PIMs for generation and generation plus storage project, and grid services and standalone storage, (4) PIMs established in the PBR D&O and (5) PIMs and a SSM established in the June 2022 D&O. • Service Quality performance incentives (ongoing). Service Quality performance incentives are measured on a calendar-year basis. The PIM tariff requires the performance targets, deadbands and the amount of maximum financial incentives used to determine the PIM financial incentive levels for each of the PIMs to remain constant in interim periods, unless otherwise amended by order of the PUC. • Service Reliability Performance measured by Transmission and Distribution-caused System Average Interruption Duration and Frequency Indexes (penalties only). Target performance is based on each utility’s historical 10-year average performance with a deadband of one standard deviation. The maximum penalty for each performance index is 20 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties of approximately $6.8 million - for both indices in total for the three utilities). For the 2022 evaluation period, the Utilities incurred $0.1 million in penalties. • Call Center Performance measured by the percentage of calls answered within 30 seconds. Target performance is based on the annual average performance for each utility for the most recent eight quarters with a deadband of 3% above and below the target. The maximum penalty or reward is 8 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties or rewards of approximately $1.4 million - in total for the three utilities). • Phase 1 RFP PIM. Procurement of low-cost variable renewable resources through the RFP process in 2018 is measured by comparison of the procurement price to target prices. The first portion of the incentive was earned upon PUC approval of the PPAs. Based on the seven PPAs approved in 2019, the Utilities recognized $1.7 million in 2019 with the remaining award to be recognized in the year following the in-service date of the projects prorated in proportion to the actual amount of energy utilized, which is estimated to occur from 2023 to 2025. In September 2023, the Utilities accrued $0.1 million (for Hawaiian Electric) in incentives related to one PPA. The net reward was reflected in the 2023 fall revenue report filing. • Phase 2 RFP PIMs. The PUC order issued on October 9, 2019 establishes pricing thresholds, timelines to complete contracting, and other performance criteria for the performance incentive eligibility. The PIMs provide incentives only without penalties. On July 9, 2020, the Utilities filed two Grid Services Purchase Agreements (GSPA) for the Grid Service RFP that potentially qualify for a demand response PIM; however, details of the incentive metrics will be determined by the PUC. On September 15, 2020, the Utilities filed one PPA that qualified for a PIM incentive and on February 16, 2021, the Utilities filed one additional PPA that qualif |
Bank segment
Bank segment | 9 Months Ended |
Sep. 30, 2023 | |
Bank Subsidiary [Abstract] | |
Bank segment | Bank segment Selected financial information American Savings Bank, F.S.B. Statements of Income and Comprehensive Income Data Three months ended September 30 Nine months ended September 30 (in thousands) 2023 2022 2023 2022 Interest and dividend income Interest and fees on loans $ 71,540 $ 53,365 $ 204,348 $ 147,499 Interest and dividends on investment securities 14,096 15,052 42,508 43,729 Total interest and dividend income 85,636 68,417 246,856 191,228 Interest expense Interest on deposit liabilities 14,446 1,704 30,944 3,572 Interest on other borrowings 8,598 1,055 25,171 1,199 Total interest expense 23,044 2,759 56,115 4,771 Net interest income 62,592 65,658 190,741 186,457 Provision for credit losses 8,835 (186) 10,053 (692) Net interest income after provision for credit losses 53,757 65,844 180,688 187,149 Noninterest income Fees from other financial services 4,703 4,763 14,391 15,066 Fee income on deposit liabilities 4,924 4,879 14,027 14,122 Fee income on other financial products 2,440 2,416 7,952 7,663 Bank-owned life insurance 2,303 122 5,683 661 Mortgage banking income 341 181 701 1,630 Gain on sale of real estate — — 495 1,002 Other income, net 627 633 2,106 1,480 Total noninterest income 15,338 12,994 45,355 41,624 Noninterest expense Compensation and employee benefits 29,902 28,597 89,500 83,478 Occupancy 5,154 5,577 16,281 16,996 Data processing 5,133 4,509 15,240 13,144 Services 3,627 2,751 8,911 7,712 Equipment 3,125 2,432 8,728 7,163 Office supplies, printing and postage 1,022 1,123 3,296 3,256 Marketing 984 925 2,834 2,877 Other expense 7,399 5,643 19,742 14,542 Total noninterest expense 56,346 51,557 164,532 149,168 Income before income taxes 12,749 27,281 61,511 79,605 Income taxes 1,384 6,525 11,380 17,513 Net income 11,365 20,756 50,131 62,092 Other comprehensive income (loss), net of taxes (34,231) (98,942) (23,011) (310,218) Comprehensive income (loss) $ (22,866) $ (78,186) $ 27,120 $ (248,126) Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended September 30 Nine months ended September 30 (in thousands) 2023 2022 2023 2022 Interest and dividend income $ 85,636 $ 68,417 $ 246,856 $ 191,228 Noninterest income 15,338 12,994 45,355 41,624 Less: Gain on sale of real estate — — 495 1,002 *Revenues-Bank 100,974 81,411 291,716 231,850 Total interest expense 23,044 2,759 56,115 4,771 Provision for credit losses 8,835 (186) 10,053 (692) Noninterest expense 56,346 51,557 164,532 149,168 Less: Gain on sale of real estate — — 495 1,002 Less: Retirement defined benefits credit—other than service costs (190) (181) (564) (552) *Expenses-Bank 88,415 54,311 230,769 152,797 *Operating income-Bank 12,559 27,100 60,947 79,053 Add back: Retirement defined benefits credit—other than service costs (190) (181) (564) (552) Income before income taxes $ 12,749 $ 27,281 $ 61,511 $ 79,605 American Savings Bank, F.S.B. Balance Sheets Data (in thousands) September 30, 2023 December 31, 2022 Assets Cash and due from banks $ 139,059 $ 153,042 Interest-bearing deposits 124,531 3,107 Cash and cash equivalents 263,590 156,149 Investment securities Available-for-sale, at fair value 1,266,412 1,429,667 Held-to-maturity, at amortized cost (fair value of $1,052,221 and $1,150,971, respectively) 1,212,005 1,251,747 Stock in Federal Home Loan Bank, at cost 18,000 26,560 Loans held for investment 6,191,006 5,978,906 Allowance for credit losses (76,366) (72,216) Net loans 6,114,640 5,906,690 Loans held for sale, at lower of cost or fair value 2,171 824 Other 698,420 692,143 Goodwill 82,190 82,190 Total assets $ 9,657,428 $ 9,545,970 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 2,573,010 $ 2,811,077 Deposit liabilities—interest-bearing 5,651,341 5,358,619 Other borrowings 750,000 695,120 Other 224,136 212,269 Total liabilities 9,198,487 9,077,085 Common stock 1 1 Additional paid-in capital 357,742 355,806 Retained earnings 460,824 449,693 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (350,234) $ (328,904) Retirement benefit plans (9,392) (359,626) (7,711) (336,615) Total shareholder’s equity 458,941 468,885 Total liabilities and shareholder’s equity $ 9,657,428 $ 9,545,970 Other assets Bank-owned life insurance $ 186,143 $ 182,986 Premises and equipment, net 189,950 195,324 Accrued interest receivable 29,361 25,077 Mortgage-servicing rights 8,376 9,047 Low-income housing investments 103,580 106,978 Deferred tax asset 127,735 116,441 Real estate acquired in settlement of loans, net — 115 Other 53,275 56,175 $ 698,420 $ 692,143 Other liabilities Accrued expenses $ 102,540 $ 97,295 Federal and state income taxes payable 845 863 Cashier’s checks 38,483 36,401 Advance payments by borrowers 4,289 9,637 Other 77,979 68,073 $ 224,136 $ 212,269 Bank-owned life insurance is life insurance purchased by ASB on the lives of certain key employees, with ASB as the beneficiary. The insurance is used to fund employee benefits through tax-free income from increases in the cash value of the policies and insurance proceeds paid to ASB upon an insured’s death. Other borrowings consisted of FHLB advances and borrowings from the Federal Reserve Bank. Investment securities. The major components of investment securities were as follows: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair Gross unrealized losses Less than 12 months 12 months or longer (dollars in thousands) Number of issues Fair Amount Number of issues Fair Amount September 30, 2023 Available-for-sale U.S. Treasury and federal agency obligations $ 82,252 $ — $ (7,252) $ 75,000 — $ — $ — 14 $ 75,000 $ (7,252) Mortgage-backed securities* 1,427,186 — (282,019) 1,145,167 5 12,650 (3,432) 178 1,132,517 (278,587) Corporate bonds 35,273 — (3,522) 31,751 — — — 3 31,751 (3,522) Mortgage revenue bonds 14,494 — — 14,494 — — — — — — $ 1,559,205 $ — $ (292,793) $ 1,266,412 5 $ 12,650 $ (3,432) 195 $ 1,239,268 $ (289,361) Held-to-maturity U.S. Treasury and federal agency obligations $ 59,912 $ — $ (9,541) $ 50,371 — $ — $ — 3 $ 50,371 $ (9,541) Mortgage-backed securities* 1,152,093 — (150,243) 1,001,850 62 612,587 (42,892) 41 389,263 (107,351) $ 1,212,005 $ — $ (159,784) $ 1,052,221 62 $ 612,587 $ (42,892) 44 $ 439,634 $ (116,892) December 31, 2022 Available-for-sale U.S. Treasury and federal agency obligations $ 88,344 $ — $ (7,281) $ 81,063 12 $ 41,201 $ (2,120) 4 $ 39,862 $ (5,161) Mortgage-backed securities* 1,530,582 — (237,614) 1,292,968 113 455,836 (56,999) 70 837,132 (180,615) Corporate bonds 44,377 — (3,643) 40,734 4 29,644 (2,028) 1 11,090 (1,615) Mortgage revenue bonds 14,902 — — 14,902 — — — — — — $ 1,678,205 $ — $ (248,538) $ 1,429,667 129 $ 526,681 $ (61,147) 75 $ 888,084 $ (187,391) Held-to-maturity U.S. Treasury and federal agency obligations $ 59,894 $ — $ (8,478) $ 51,416 1 $ 16,874 $ (3,222) 2 $ 34,542 $ (5,256) Mortgage-backed securities* 1,191,853 2,670 (94,968) 1,099,555 22 183,629 (10,593) 51 567,250 (84,375) $ 1,251,747 $ 2,670 $ (103,446) $ 1,150,971 23 $ 200,503 $ (13,815) 53 $ 601,792 $ (89,631) * Issued or guaranteed by U.S. Government agencies or sponsored agencies ASB does not believe that the investment securities that were in an unrealized loss position at September 30, 2023 and December 31, 2022, 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 rated investment grade by one or more agencies. The contractual cash flows of the U.S. Treasury, federal agency obligations and agency mortgage-backed securities are backed by the full faith and credit guaranty of the United States government or an agency of the government. ASB does not intend to sell the securities before the recovery of its amortized cost basis and there have been no adverse changes in the timing of the contractual cash flows for the securities. ASB’s investment securities portfolio did not require an allowance for credit losses at September 30, 2023 and December 31, 2022. U.S. Treasury, federal agency obligations, corporate bonds, and mortgage revenue bonds have contractual terms to maturity. Mortgage-backed securities have contractual terms to maturity, but require periodic payments to reduce principal. In addition, expected maturities will differ from contractual maturities because borrowers have the right to prepay the underlying mortgages. The contractual maturities of investment securities were as follows: September 30, 2023 Amortized Fair value (in thousands) Available-for-sale Due in one year or less $ 1,811 $ 1,782 Due after one year through five years 115,714 104,970 Due after five years through ten years 14,494 14,494 Due after ten years — — 132,019 121,246 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,427,186 1,145,166 Total available-for-sale securities $ 1,559,205 $ 1,266,412 Held-to-maturity Due in one year or less $ — $ — Due after one year through five years 39,824 34,133 Due after five years through ten years 20,088 16,238 Due after ten years — — 59,912 50,371 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,152,093 1,001,850 Total held-to-maturity securities $ 1,212,005 $ 1,052,221 There were no sales of available-for-sale securities for the three months and nine months ended September 30, 2023 and 2022. The components of loans were summarized as follows: September 30, 2023 December 31, 2022 (in thousands) Real estate: Residential 1-4 family $ 2,566,300 $ 2,479,637 Commercial real estate 1,400,570 1,358,123 Home equity line of credit 1,032,749 1,002,905 Residential land 20,245 20,679 Commercial construction 168,539 88,489 Residential construction 17,295 20,788 Total real estate 5,205,698 4,970,621 Commercial 732,458 779,691 Consumer 282,946 254,709 Total loans 6,221,102 6,005,021 Less: Deferred fees and discounts (30,096) (26,115) Allowance for credit losses (76,366) (72,216) Total loans, net $ 6,114,640 $ 5,906,690 ASB's policy is to require private mortgage insurance on all real estate loans when the loan-to-value ratio of the property exceeds 80% of the lower of the appraised value or purchase price at origination. For non-owner occupied residential property purchases, the loan-to-value ratio may not exceed 75% of the lower of the appraised value or purchase price at origination. Allowance for credit losses. The allowance for credit losses (balances and changes) by portfolio segment were as follows: (in thousands) Residential Commercial real Home Residential land Commercial construction Residential construction Commercial loans Consumer loans Total Three months ended September 30, 2023 Allowance for credit losses: Beginning balance $ 4,708 $ 20,278 $ 7,139 $ 653 $ 2,549 $ 26 $ 11,358 $ 22,357 $ 69,068 Charge-offs — — — — — — (125) (2,667) (2,792) Recoveries 57 — 131 1 — — 725 841 1,755 Provision 1,702 2,180 505 (33) 1,075 16 (1,175) 4,065 8,335 Ending balance $ 6,467 $ 22,458 $ 7,775 $ 621 $ 3,624 $ 42 $ 10,783 $ 24,596 $ 76,366 Three months ended September 30, 2022 Allowance for credit losses: Beginning balance $ 8,520 $ 20,900 $ 6,096 $ 677 $ 2,634 $ 46 $ 12,413 $ 18,170 $ 69,456 Charge-offs — — — — — — (143) (1,503) (1,646) Recoveries 2 — 14 — — — 303 963 1,282 Provision (938) 136 (167) 12 (1,635) 3 378 3,525 1,314 Ending balance $ 7,584 $ 21,036 $ 5,943 $ 689 $ 999 $ 49 $ 12,951 $ 21,155 $ 70,406 Nine months ended September 30, 2023 Allowance for credit losses: Beginning balance $ 6,270 $ 21,898 $ 6,125 $ 717 $ 1,195 $ 46 $ 12,426 $ 23,539 $ 72,216 Charge-offs (990) — (360) — — — (509) (7,558) (9,417) Recoveries 63 — 165 4 — — 1,329 2,653 4,214 Provision 1,124 560 1,845 (100) 2,429 (4) (2,463) 5,962 9,353 Ending balance $ 6,467 $ 22,458 $ 7,775 $ 621 $ 3,624 $ 42 $ 10,783 $ 24,596 $ 76,366 Nine months ended September 30, 2022 Allowance for credit losses: Beginning balance $ 6,545 $ 24,696 $ 5,657 $ 646 $ 2,186 $ 18 $ 15,798 $ 15,584 $ 71,130 Charge-offs — — — — — — (367) (4,354) (4,721) Recoveries 13 — 56 101 — — 1,055 2,964 4,189 Provision 1,026 (3,660) 230 (58) (1,187) 31 (3,535) 6,961 (192) Ending balance $ 7,584 $ 21,036 $ 5,943 $ 689 $ 999 $ 49 $ 12,951 $ 21,155 $ 70,406 Allowance for loan commitments. The allowance for loan commitments by portfolio segment were as follows: (in thousands) Home equity Commercial construction Commercial loans Total Three months ended September 30, 2023 Allowance for loan commitments: Beginning balance $ 600 $ 3,800 $ 200 $ 4,600 Provision — 500 — 500 Ending balance $ 600 $ 4,300 $ 200 $ 5,100 Three months ended September 30, 2022 Allowance for loan commitments: Beginning balance $ 400 $ 4,100 $ 1,400 $ 5,900 Provision — (1,500) — (1,500) Ending balance $ 400 $ 2,600 $ 1,400 $ 4,400 Nine months ended September 30, 2023 Allowance for loan commitments: Beginning balance $ 400 $ 2,600 $ 1,400 $ 4,400 Provision 200 1,700 (1,200) 700 Ending balance $ 600 $ 4,300 $ 200 $ 5,100 Nine months ended September 30, 2022 Allowance for loan commitments: Beginning balance $ 400 $ 3,700 $ 800 $ 4,900 Provision — (1,100) 600 (500) Ending balance $ 400 $ 2,600 $ 1,400 $ 4,400 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) 2023 2022 2021 2020 2019 Prior Revolving Converted to term loans Total September 30, 2023 Residential 1-4 family Current $ 199,880 $ 414,053 $ 741,401 $ 405,552 $ 107,566 $ 692,167 $ — $ — $ 2,560,619 30-59 days past due — — — 267 — 2,654 — — 2,921 60-89 days past due — — — — — 973 — — 973 Greater than 89 days past due — — — — — 1,787 — — 1,787 199,880 414,053 741,401 405,819 107,566 697,581 — — 2,566,300 Current YTD period Gross charge-offs — — — — — 990 — — 990 Home equity line of credit Current — — — — — — 976,029 54,579 1,030,608 30-59 days past due — — — — — — 463 246 709 60-89 days past due — — — — — — 350 321 671 Greater than 89 days past due — — — — — — 495 266 761 — — — — — — 977,337 55,412 1,032,749 Current YTD period Gross charge-offs — — — — — — 77 283 360 Residential land Current 3,077 5,118 7,549 3,518 — 983 — — 20,245 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 3,077 5,118 7,549 3,518 — 983 — — 20,245 Current YTD period Gross charge-offs — — — — — — — — — Residential construction Current 2,780 11,019 3,496 — — — — — 17,295 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 2,780 11,019 3,496 — — — — — 17,295 Current YTD period Gross charge-offs — — — — — — — — — Consumer Current 82,282 164,693 12,203 2,394 1,010 222 10,345 3,413 276,562 30-59 days past due 822 1,882 122 43 49 1 46 156 3,121 60-89 days past due 362 933 108 35 52 — 32 81 1,603 Greater than 89 days past due 375 785 102 33 26 2 151 186 1,660 83,841 168,293 12,535 2,505 1,137 225 10,574 3,836 282,946 Current YTD period Gross charge-offs 850 4,637 840 163 363 39 279 387 7,558 Commercial real estate Pass 81,287 390,352 177,125 265,808 66,112 329,235 15,482 — 1,325,401 Special Mention — — 11,214 3,381 14,452 22,367 — — 51,414 Substandard 5,386 — 1,549 — 11,048 5,772 — — 23,755 Doubtful — — — — — — — — — 86,673 390,352 189,888 269,189 91,612 357,374 15,482 — 1,400,570 Term Loans by Origination Year Revolving Loans (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Converted to term loans Total Current YTD period Gross charge-offs — — — — — — — — — Commercial construction Pass 10,643 21,440 66,143 356 — — 69,957 — 168,539 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 10,643 21,440 66,143 356 — — 69,957 — 168,539 Current YTD period Gross charge-offs — — — — — — — — — Commercial Pass 82,145 209,364 124,453 75,753 46,291 81,409 81,627 9,560 710,602 Special Mention 1,945 — 970 — 272 — 7,151 — 10,338 Substandard — 3,054 2,040 230 763 3,409 1,506 516 11,518 Doubtful — — — — — — — — — 84,090 212,418 127,463 75,983 47,326 84,818 90,284 10,076 732,458 Current YTD period Gross charge-offs — — 51 — — — 177 281 509 Total loans $ 470,984 $ 1,222,693 $ 1,148,475 $ 757,370 $ 247,641 $ 1,140,981 $ 1,163,634 $ 69,324 $ 6,221,102 Term Loans by Origination Year Revolving Loans (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Converted to term loans Total December 31, 2022 Residential 1-4 family Current $ 432,707 $ 755,056 $ 423,455 $ 113,096 $ 51,860 $ 698,354 $ — $ — $ 2,474,528 30-59 days past due — — — — 448 1,098 — — 1,546 60-89 days past due — — 268 — — 90 — — 358 Greater than 89 days past due — — — — 809 2,396 — — 3,205 432,707 755,056 423,723 113,096 53,117 701,938 — — 2,479,637 Home equity line of credit Current — — — — — — 959,131 40,814 999,945 30-59 days past due — — — — — — 1,103 209 1,312 60-89 days past due — — — — — — 209 226 435 Greater than 89 days past due — — — — — — 587 626 1,213 — — — — — — 961,030 41,875 1,002,905 Residential land Current 5,245 9,010 5,222 203 522 477 — — 20,679 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 5,245 9,010 5,222 203 522 477 — — 20,679 Residential construction Current 7,986 11,624 1,178 — — — — — 20,788 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 7,986 11,624 1,178 — — — — — 20,788 Consumer Current 199,574 21,330 5,543 7,580 527 140 10,810 4,782 250,286 30-59 days past due 1,110 287 65 239 30 — 81 167 1,979 60-89 days past due 756 163 88 137 19 — 45 107 1,315 Greater than 89 days past due 621 105 37 176 28 — 20 142 1,129 202,061 21,885 5,733 8,132 604 140 10,956 5,198 254,709 Commercial real estate Pass 390,206 177,130 283,321 51,542 63,084 278,280 8,235 — 1,251,798 Special Mention — 11,250 3,446 40,423 — 24,466 — — 79,585 Substandard — — 665 11,357 — 14,718 — — 26,740 Doubtful — — — — — — — — — 390,206 188,380 287,432 103,322 63,084 317,464 8,235 — 1,358,123 Commercial construction Pass 15,094 47,478 44 — — — 25,873 — 88,489 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 15,094 47,478 44 — — — 25,873 — 88,489 Commercial Pass 239,852 185,013 85,220 68,161 46,142 53,192 60,871 13,964 752,415 Special Mention — — — 2,374 — 645 9,005 8 12,032 Substandard 3,322 2,305 401 1,304 1,346 3,849 1,664 1,053 15,244 Doubtful — — — — — — — — — 243,174 187,318 85,621 71,839 47,488 57,686 71,540 15,025 779,691 Total loans $ 1,296,473 $ 1,220,751 $ 808,953 $ 296,592 $ 164,815 $ 1,077,705 $ 1,077,634 $ 62,098 $ 6,005,021 Revolving loans converted to term loans during the nine months ended September 30, 2023 in the commercial, home equity line of credit and consumer portfolios were $6.1 million, $20.4 million and $1.1 million, respectively. Revolving loans converted to term loans during the nine months ended September 30, 2022 in the commercial, home equity line of credit and consumer portfolios were $1.6 million, $12.9 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 Total Current Total Amortized cost> September 30, 2023 Real estate: Residential 1-4 family $ 2,921 $ 973 $ 1,787 $ 5,681 $ 2,560,619 $ 2,566,300 $ — Commercial real estate — — — — 1,400,570 1,400,570 — Home equity line of credit 709 671 761 2,141 1,030,608 1,032,749 — Residential land — — — — 20,245 20,245 — Commercial construction — — — — 168,539 168,539 — Residential construction — — — — 17,295 17,295 — Commercial 575 100 77 752 731,706 732,458 — Consumer 3,121 1,603 1,660 6,384 276,562 282,946 — Total loans $ 7,326 $ 3,347 $ 4,285 $ 14,958 $ 6,206,144 $ 6,221,102 $ — December 31, 2022 Real estate: Residential 1-4 family $ 1,546 $ 358 $ 3,205 $ 5,109 $ 2,474,528 $ 2,479,637 $ — Commercial real estate 508 217 — 725 1,357,398 1,358,123 — Home equity line of credit 1,312 435 1,213 2,960 999,945 1,002,905 — Residential land — — — — 20,679 20,679 — Commercial construction — — — — 88,489 88,489 — Residential construction — — — — 20,788 20,788 — Commercial 614 18 77 709 778,982 779,691 — Consumer 1,979 1,315 1,129 4,423 250,286 254,709 — Total loans $ 5,959 $ 2,343 $ 5,624 $ 13,926 $ 5,991,095 $ 6,005,021 $ — The credit risk profile based on nonaccrual loans were as follows: (in thousands) September 30, 2023 December 31, 2022 With a Related ACL Without a Related ACL Total With a Related ACL Without a Related ACL Total Real estate: Residential 1-4 family $ 573 $ 2,500 $ 3,073 $ 4,198 $ 2,981 $ 7,179 Commercial real estate — — — — — — Home equity line of credit 2,764 1,017 3,781 3,654 1,442 5,096 Residential land 106 — 106 420 — 420 Commercial construction — — — — — — Residential construction — — — — — — Commercial 508 — 508 2,183 — 2,183 Consumer 2,414 — 2,414 1,588 — 1,588 Total $ 6,365 $ 3,517 $ 9,882 $ 12,043 $ 4,423 $ 16,466 ASB did not recognize interest on nonaccrual loans for the nine months ended September 30, 2023 and 2022. Modifications Made to Borrowers Experiencing Financial Difficulty. The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination. The starting point for the estimate of the allowance for credit losses is historical loan information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. ASB uses a probability of default/loss given default model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made at the time of the modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, a change to the allowance for credit losses is generally not recorded upon modification. 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 marketplace, and other actions intended to minimize economic loss and to provide alternatives to foreclosure or repossession of collateral. During the nine months ended September 30, 2023, no loans received a material modification based on borrower financial difficulty. Troubled debt restructurings. Prior to January 1, 2023, a loan modification was deemed to be a TDR when the borrower was determined to be experiencing financial difficulties and ASB granted a concession it would not otherwise consider. With the adoption of ASU No. 2022-02, accounting guidance for TDRs by creditors is eliminated. Loan refinancing and restructuring guidance is applied to determine whether a modification results in a new loan or a continuation of an existing loan. ASB will continue TDR disclosures for years prior to the adoption of ASU No. 2022-02. The credit risk profile based on loans whose terms have been modified and accruing interest were as follows: (in thousands) December 31, 2022 Real estate: Residential 1-4 family $ 8,821 Commercial real estate 9,477 Home equity line of credit 4,404 Residential land 782 Commercial construction — Residential construction — Commercial 6,596 Consumer 50 Total troubled debt restructured loans accruing interest $ 30,130 Loans modified as a TDR. Loan modifications that occurred during the three and nine months ended September 30, 2022. Three months ended September 30, 2022 Nine months ended September 30, 2022 (dollars in thousands) Number Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Number Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Troubled debt restructurings Real estate: Residential 1-4 family 2 $ 512 $ — 3 $ 893 $ 135 Commercial real estate — — — — — — Home equity line of credit — — — — — — Residential land 1 204 16 1 204 16 Commercial construction — — — — — — Residential construction — — — — — — Commercial — — — 1 288 20 Consumer — — — — — — 3 $ 716 $ 16 5 $ 1,385 $ 171 1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included. There were no loans modified in TDRs that experienced a payment default of 90 days or more during the third quarter and first nine months of 2022. 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, 2022. Collateral-dependent loans. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral. Loans considered collateral-dependent were as follows: Amortized cost (in thousands) September 30, 2023 December 31, 2022 Collateral type Real estate: Residential 1-4 family $ 2,584 $ 3,959 Residential real estate property Home equity line of credit 1,017 1,425 Residential real estate property Total $ 3,601 $ 5,384 ASB had $3.4 million and $4.2 million of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure at September 30, 2023 and December 31, 2022, respectively. Mortgage servicing rights (MSRs) . In its mortgage banking business, ASB sells residential mortgage loans to government-sponsored entities and other parties, who may issue securities backed by pools of such loans. ASB retains no beneficial interests in these loans other than the servicing rights of certain loans sold. ASB received proceeds from the sale of residential mortgages of $21.5 million and $12.1 million for the three months ended September 30, 2023 and 2022, respectively, and recognized gains on such sales of $0.3 million and $0.2 million for the three months ended September 30, 2023 and 2022, respectively. ASB received proceeds from the sale of residential mortgages of $36.1 million and $126.4 million for the nine months ended September 30, 2023 and 2022, respectively, and recognized gains on such sales of $0.7 million and $1.6 million for the nine months ended September 30, 2023 and 2022, respectively. There were no repurchased mortgage loans for the three and nine months ended September 30, 2023 and one repurchased mortgage loan for the three and nine months ended September 30, 2022. Mortgage servicing fees, a component of other income, net, were $0.9 million and $1.0 million for the three months ended September 30, 2023 and 2022, respectively, and $2.7 million and $2.8 million for the nine months ended September 30, 2023 and 2022 respectively. Changes in the carrying value of MSRs were as follows: (in thousands) Gross Accumulated amortization Valuation allowance Net September 30, 2023 $ 18,125 $ (9,749) $ — $ 8,376 December 31, 2022 19,544 (10,497) — 9,047 Changes related to MSRs were as follows: Three months ended September 30 Nine months ended September 30 (in thousands) 2023 2022 2023 2022 Mortgage servicing rights Beginning balance $ 8,495 $ 9,696 $ 9,047 $ 9,950 Amount capitalized 184 117 319 1,040 Amortization (303) (462) (990) (1,639) Other-than-temporary impairment — — — — Carrying amount before valuation allowance 8,376 9,351 8,376 9,351 Valuation allowance for mortgage servicing rights Beginning balance — — — — Provision — — — — Other-than-temporary impairment — — — — Ending balance — — — — Net carrying value of mortgage servicing rights $ 8,376 $ 9,351 $ 8,376 $ 9,351 ASB capitalizes MSRs acquired upon the sale of mortgage loans with servicing rights retained. On a monthly basis, ASB compares the net carrying value of the MSRs to its fair value to determine if there are any changes to the valuation allowance and/or other-than-temporary impairment for the MSRs. ASB uses a present value cash flow model to estimate the fair value of MSRs. Impairment is recognized through a valuation allowance for each stratum when the carrying amount exceeds fair value, with any associated provision recorded as a component of loan servicing fees included in “Revenues - bank” in the condensed consolidated statements of income. A direct write-down is recorded when the recoverability of the valuation allowance is deemed to be unrecoverable. Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows: (dollars in thousands) September 30, 2023 December 31, 2022 Unpaid principal balance $ 1,412,412 $ 1,451,322 Weighted average note rate 3.44 % 3.38 % Weighted average discount rate 10.00 % 10.00 % Weighted average prepayment speed 5.58 % 6.56 % The sensitivity analysis of fair value of MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows: (dollars in thousands) September 30, 2023 December 31, 2022 Prepayment rate: 25 basis points adverse rate change $ (90) $ (92) 50 basis points adverse rate change (207) (214) Discount rate: 25 basis points adverse rate change (206) (182) 50 basis points adverse rate change (407) (361) The effect of a variation in certain assumptions on fair value is calculated without changing any other assumptions. This analysis typically cannot be extrapolated because the relationship of a change in one key assumption to the changes in the fair value of MSRs typically is not linear. Other borrowings. As of September 30, 2023 and December 31, 2022, ASB had $200.0 million and $414.0 million of FHLB advances outstanding, respectively, and borrowings with the Federal Reserve Bank of $550.0 million and nil, respectively. As of September 30, 2023, ASB was in compliance with all FHLB Advances, Pledge and Security Agreement requirements and all requirements to borrow at the Federal Reserve Discount Window Primary Credit Facility under 12 CFR 201.4(a) guidelines. Securities sold under agreements to repurchase are accounted for as financing transactions and the obligations to repurchase these securities are recorded as liabilities in the condensed consolidated balance sheets. ASB pledges investment securities as collateral f |
Credit agreement and changes in
Credit agreement and changes in debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Credit agreement and changes in debt | Credit agreements and changes in debt 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 $175 million HEI Facility’s initial termination date was May 14, 2026. The $200 million Hawaiian Electric Facility’s initial termination date was May 13, 2022, but 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. On April 21, 2023, HEI and Hawaiian Electric executed Amendment No. 1 to the Credit Facilities (Amendment). The Amendment was executed to reflect the transition from the London Inter-Bank Offered Rate (LIBOR) to the Term Secured Overnight Financing Rate (SOFR) as the benchmark interest rate for non-Alternate Base Rate (ABR) Loans under the Credit Facilities. On May 14, 2023, HEI and Hawaiian Electric exercised their first of two, one-year extensions to the commitment termination date with eight of the nine financial institutions to extend the Credit Facilities to May 14, 2027. The committed capacities under the HEI Facility and Hawaiian Electric Facility are $175 million and $200 million, respectively, through May 14, 2026, and step down to approximately $157 million and $180 million, respectively, through May 14, 2027. After multiple downgrades of the Companies’ credit ratings to ratings below investment grade, by Fitch, Moody’s and S&P due to the Maui windstorm and wildfires, on August 15, 2023, HEI made an initial $2.5 million draw on its $175 million existing revolving credit facility to repay maturing commercial paper. By August 23, 2023, HEI drew its remaining and Hawaiian Electric drew its full committed capacity on their respective existing revolving credit facilities, totaling $175 million and $200 million, respectively. The draws were made to provide access to liquidity and support the Company’s restoration efforts on Maui. The cash proceeds were primarily invested in highly liquid short-term investments, were used to repay $100 million of Hawaiian Electric’s long-term debt that matured on November 1, 2023, and used for general corporate purposes. Changes in debt. As of September 30, 2023, the Company and Hawaiian Electric were in compliance with all applicable financial covenants. HEI private placement . On March 16, 2023, HEI entered into a note purchase agreement (HEI NPA) under which HEI has authorized the issue and sale of $100 million of unsecured senior notes that were drawn on May 30, 2023. The proceeds of the notes were used to repay the $100 million term loan facility on May 31, 2023. The terms of the notes are as follows: HEI Series 2023A HEI Series 2023B Aggregate principal amount $39 million $61 million Fixed coupon interest rate 6.04% 6.10% Maturity date 6/15/2028 6/15/2033 Interest on the notes is paid semiannually on June 15th and December 15th. The HEI NPA contains certain restrictive financial covenants that are substantially the same as the financial covenants contained in HEI’s revolving unsecured 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. HEI term loan . On October 20, 2022, HEI entered into a term loan facility in the aggregate principal amount of $100 million. On December 28, 2022, HEI drew $35 million on the term loan, and on March 31, 2023, HEI drew the remaining $65 million at an initial interest rate of 5.81% for an initial one month interest period. On May 31, 2023, HEI fully repaid the term loan facility at which time it was terminated. Borrowings under the facility bore interest at Term Secured Overnight Financing Rate (SOFR), as defined in the agreement, plus an applicable margin and a SOFR spread adjustment. The term loan facility contained certain restrictive financial covenants that were substantially the same as the financial covenants contained in the HEI Facility. Utilities private placement . On January 10, 2023, the Utilities executed through a private placement pursuant to separate Note Purchase Agreements (the NPAs), the following unsecured senior notes bearing taxable interest (2023 Notes). The 2023 Notes had a delayed draw feature and the Utilities drew down all the proceeds on February 9, 2023. Series 2023A Series 2023B Series 2023C Aggregate principal amount $90 million $40 million $20 million Fixed coupon interest rate Hawaiian Electric 6.11% 6.25% 6.70% Hawaii Electric Light 6.25% — — Maui Electric 6.25% — — Maturity date Hawaiian Electric 2/9/2030 2/9/2033 2/9/2053 Hawaii Electric Light 2/9/2033 — — Maui Electric 2/9/2033 — — Principal amount by company Hawaiian Electric $40 million $40 million $20 million Hawaii Electric Light $25 million — — Maui Electric $25 million — — The 2023 Notes include substantially the same financial covenants and customary conditions as Hawaiian Electric’s credit agreement. Hawaiian Electric is also a party as guarantor under the NPAs entered into by Hawaii Electric Light and Maui Electric. The Utilities did not obtain any of the proceeds at execution and instead drew down all the proceeds on February 9, 2023. The proceeds were used to finance their respective capital expenditures, repay short-term debt used to finance or refinance capital expenditures and/or reimburse funds used for the payment of capital expenditures. The 2023 Notes may be prepaid in whole or in part at any time at the prepayment price of the principal amount plus a “Make-Whole Amount” as defined in the NPAs. |
Shareholders' equity
Shareholders' equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Shareholders' equity | Shareholders' equity Accumulated other comprehensive income/(loss) . Changes in the balances of each component of accumulated other comprehensive income/(loss) (AOCI) were as follows: HEI Consolidated Hawaiian Electric Consolidated (in thousands) Net unrealized gains (losses) on securities Unrealized gains (losses) on derivatives Retirement benefit plans AOCI AOCI-Retirement benefit plans Balance, December 31, 2022 $ (328,904) $ 1,991 $ (9,115) $ (336,028) $ 2,861 Current period other comprehensive income (loss) (21,330) (827) 161 (21,996) (166) Balance, September 30, 2023 $ (350,234) $ 1,164 $ (8,954) $ (358,024) $ 2,695 Balance, December 31, 2021 $ (32,037) $ (3,638) $ (16,858) $ (52,533) $ (3,280) Current period other comprehensive income (loss) (308,229) 6,561 657 (301,011) 210 Balance, September 30, 2022 $ (340,266) $ 2,923 $ (16,201) $ (353,544) $ (3,070) Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Affected line item in the Three months ended September 30 Nine months ended September 30 (in thousands) 2023 2022 2023 2022 HEI consolidated Net unrealized gains (losses) on available-for sale investment securities - amortization of unrealized holding losses on held-to-maturity securities $ 3,699 $ — $ 11,065 $ — Bank revenues Net realized losses (gains) on derivatives qualifying as cash flow hedges (47) 53 (143) 161 Interest expense Retirement benefit plans: Amortization of prior service credit and net losses (gains) recognized during the period in net periodic benefit cost (446) 5,606 (1,160) 10,229 See Note 9 for additional details Impact of D&Os of the PUC included in regulatory assets 470 (5,303) 1,321 (9,572) See Note 9 for additional details Total reclassifications $ 3,676 $ 356 $ 11,083 $ 818 Hawaiian Electric consolidated Retirement benefit plans: Amortization of prior service credit and net losses (gains) recognized during the period in net periodic benefit cost $ (547) $ 5,411 $ (1,487) $ 9,782 See Note 9 for additional details Impact of D&Os of the PUC included in regulatory assets 470 (5,303) 1,321 (9,572) See Note 9 for additional details Total reclassifications $ (77) $ 108 $ (166) $ 210 |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenue from contracts with customers. The following tables disaggregate revenues by major source, timing of revenue recognition, and segment: Three months ended September 30, 2023 Nine months ended September 30, 2023 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 257,790 $ — $ — $ 257,790 $ 753,207 $ — $ — $ 753,207 Electric energy sales - commercial 257,876 — — 257,876 762,454 — — 762,454 Electric energy sales - large light and power 284,607 — — 284,607 855,396 — — 855,396 Electric energy sales - other 4,688 — — 4,688 14,628 — — 14,628 Bank fees — 12,067 — 12,067 — 36,370 — 36,370 Other sales — — 5,016 5,016 — — 13,361 13,361 Total revenues from contracts with customers 804,961 12,067 5,016 822,044 2,385,685 36,370 13,361 2,435,416 Revenues from other sources Regulatory revenue (20,927) — — (20,927) 3,716 — — 3,716 Bank interest and dividend income — 85,636 — 85,636 — 246,856 — 246,856 Other bank noninterest income — 3,271 — 3,271 — 8,490 — 8,490 Other 10,953 — 896 11,849 30,138 — 1,179 31,317 Total revenues from other sources (9,974) 88,907 896 79,829 33,854 255,346 1,179 290,379 Total revenues $ 794,987 $ 100,974 $ 5,912 $ 901,873 $ 2,419,539 $ 291,716 $ 14,540 $ 2,725,795 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 12,067 $ — $ 12,067 $ — $ 36,370 $ — $ 36,370 Services/goods transferred over time 804,961 — 5,016 809,977 2,385,685 — 13,361 2,399,046 Total revenues from contracts with customers $ 804,961 $ 12,067 $ 5,016 $ 822,044 $ 2,385,685 $ 36,370 $ 13,361 $ 2,435,416 Three months ended September 30, 2022 Nine months ended September 30, 2022 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 306,417 $ — $ — $ 306,417 $ 790,424 $ — $ — $ 790,424 Electric energy sales - commercial 309,940 — — 309,940 794,238 — — 794,238 Electric energy sales - large light and power 351,763 — — 351,763 886,733 — — 886,733 Electric energy sales - other 5,400 — — 5,400 11,699 — — 11,699 Bank fees — 12,058 — 12,058 — 36,851 — 36,851 Other sales — — 4,760 4,760 — — 7,208 7,208 Total revenues from contracts with customers 973,520 12,058 4,760 990,338 2,483,094 36,851 7,208 2,527,153 Revenues from other sources Regulatory revenue (26,301) — — (26,301) (24,843) — — (24,843) Bank interest and dividend income — 68,417 — 68,417 — 191,228 — 191,228 Other bank noninterest income — 936 — 936 — 3,771 — 3,771 Other 8,752 — 55 8,807 25,385 — 178 25,563 Total revenues from other sources (17,549) 69,353 55 51,859 542 194,999 178 195,719 Total revenues $ 955,971 $ 81,411 $ 4,815 $ 1,042,197 $ 2,483,636 $ 231,850 $ 7,386 $ 2,722,872 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 12,058 $ — $ 12,058 $ — $ 36,851 $ — $ 36,851 Services/goods transferred over time 973,520 — 4,760 978,280 2,483,094 — 7,208 2,490,302 Total revenues from contracts with customers $ 973,520 $ 12,058 $ 4,760 $ 990,338 $ 2,483,094 $ 36,851 $ 7,208 $ 2,527,153 There are no material contract assets or liabilities associated with revenues from contracts with customers existing at December 31, 2022 or as of September 30, 2023. Accounts receivable and unbilled revenues related to contracts with customers represent an unconditional right to consideration since all performance obligations have been satisfied. These amounts are disclosed as accounts receivable and unbilled revenues, net on HEI’s condensed consolidated balance sheets and customer accounts receivable, net and accrued unbilled revenues, net on Hawaiian Electric’s condensed consolidated balance sheets. As of September 30, 2023, the Company had no material remaining performance obligations due to the nature of the Company’s contracts with its customers. For the Utilities, performance obligations are fulfilled as electricity is delivered to customers. For ASB, fees are recognized when a transaction is completed. |
Retirement benefits
Retirement benefits | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Retirement benefits | Retirement benefits Defined benefit pension and other postretirement benefit plans information. For the first nine months of 2023, the Company contributed $6 million ($6 million by the Utilities) to its pension and other postretirement benefit plans, compared to $32 million ($31 million by the Utilities) in the first nine months of 2022. The Company’s current estimate of total contributions to its pension and other postretirement benefit plans in 2023 is $8 million ($8 million by the Utilities), compared to $43 million ($42 million by the Utilities) in 2022. In addition, the Company expects to pay directly $3 million ($1 million by the Utilities) of benefits in 2023, compared to $2 million ($1 million by the Utilities) paid in 2022. The components of net periodic pension costs (NPPC) and net periodic benefit costs (NPBC) for HEI consolidated and Hawaiian Electric consolidated were as follows: Three months ended September 30 Nine months ended September 30 Pension benefits Other benefits Pension benefits Other benefits (in thousands) 2023 2022 2023 2022 2023 2022 2023 2022 HEI consolidated Service cost $ 11,418 $ 18,831 $ 385 $ 624 $ 34,210 $ 58,478 $ 1,072 $ 1,937 Interest cost 26,022 20,274 2,075 1,593 77,265 59,895 6,389 4,868 Expected return on plan assets (35,238) (35,163) (3,426) (3,394) (105,630) (105,827) (10,236) (10,189) Amortization of net prior period gain — — (218) (232) — — (656) (696) Amortization of net actuarial (gain)/losses 138 7,782 (518) (3) 515 20,376 (1,416) (9) Net periodic pension/benefit cost (return) 2,340 11,724 (1,702) (1,412) 6,360 32,922 (4,847) (4,089) Impact of PUC D&Os 17,663 8,758 1,536 1,289 53,929 27,861 4,385 3,725 Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) $ 20,003 $ 20,482 $ (166) $ (123) $ 60,289 $ 60,783 $ (462) $ (364) Hawaiian Electric consolidated Service cost $ 11,071 $ 18,248 $ 380 $ 617 $ 33,108 $ 56,883 $ 1,060 $ 1,915 Interest cost 24,116 18,850 1,981 1,525 71,513 55,773 6,107 4,670 Expected return on plan assets (33,029) (33,314) (3,374) (3,343) (98,972) (100,405) (10,081) (10,035) Amortization of net prior period gain — — (218) (232) — — (654) (694) Amortization of net actuarial (gain)/losses (16) 7,519 (503) — 21 19,769 (1,370) — Net periodic pension/benefit cost (return) 2,142 11,303 (1,734) (1,433) 5,670 32,020 (4,938) (4,144) Impact of PUC D&Os 17,663 8,758 1,536 1,289 53,929 27,861 4,385 3,725 Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) $ 19,805 $ 20,061 $ (198) $ (144) $ 59,599 $ 59,881 $ (553) $ (419) HEI consolidated recorded retirement benefits expense of $33 million ($32 million by the Utilities) in the first nine months of 2023 and $35 million ($34 million by the Utilities) in the first nine months of 2022 and charged the remaining net periodic benefit cost primarily to electric utility plant. The Utilities have implemented pension and OPEB tracking mechanisms under which all of their retirement benefit expenses (except for executive life and nonqualified pension plan expenses) determined in accordance with GAAP are recovered over time. Under the tracking mechanisms, any actual costs determined in accordance with GAAP that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will then be amortized over five years beginning with the respective utility’s next rate case. Defined contribution plans information. For the first nine months of 2023 and 2022, the Company’s expenses for its defined contribution plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan were $7.0 million and $6.5 million, respectively, and cash contributions were $7.6 million and $5.4 million, respectively. For the first |
Share-based compensation
Share-based compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based compensation | Share-based compensation Under the 2010 Equity and Incentive Plan, as amended and restated effective March 1, 2014 (EIP), 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 original 2010 Equity and Incentive Plan was amended and restated effective March 1, 2014 and an additional 1.5 million shares were added to the shares available for issuance under these programs. As of September 30, 2023, approximately 2.7 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 0.7 million shares that could be issued upon the vesting of outstanding restricted stock units and the achievement of performance goals for awards outstanding under long-term incentive plans (assuming that such performance goals are achieved at maximum levels). Under the 2011 Nonemployee Director Stock Plan (2011 Director Plan), HEI can issue shares of common stock as compensation to nonemployee directors of HEI, Hawaiian Electric and ASB. As of September 30, 2023, there were 168,177 shares remaining available for future issuance under the 2011 Director Plan. Share-based compensation expense and the related income tax benefit were as follows: Three months ended September 30 Nine months ended September 30 (in millions) 2023 2022 2023 2022 HEI consolidated Share-based compensation expense 1 $ 2.4 $ 1.7 $ 8.3 $ 7.3 Income tax benefit 0.5 0.4 1.6 1.5 Hawaiian Electric consolidated Share-based compensation expense 1 0.7 0.6 2.5 2.1 Income tax benefit 0.1 0.1 0.5 0.5 1 For the three and nine months ended September 30, 2023 and 2022, the Company has not capitalized any share-based compensation. Stock awards. HEI granted HEI common stock to nonemployee directors under the 2011 Director Plan as follows: Three months ended September 30 Nine months ended September 30 (dollars in millions) 2023 2022 2023 2022 Shares granted — 965 40,450 35,720 Fair value $ — $ — $ 1.5 $ 1.5 Income tax benefit — — 0.4 0.4 The number of shares issued to each nonemployee director of HEI, Hawaiian Electric and ASB is determined based on the closing price of HEI common stock on the grant date. Restricted stock units. Information about HEI’s grants of restricted stock units was as follows: Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 199,130 $ 41.22 208,953 $ 39.71 182,528 $ 39.75 233,448 $ 38.10 Granted — — — — 100,088 42.41 98,463 41.31 Vested — — (4,244) 39.49 (81,112) 39.37 (95,658) 37.73 Forfeited — — (16,540) 39.99 (2,374) 41.79 (48,084) 39.19 Outstanding, end of period 199,130 $ 41.22 188,169 $ 39.69 199,130 $ 41.22 188,169 $ 39.69 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ — $ 4.2 $ 4.1 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For the nine months ended September 30, 2023 and 2022, total restricted stock units and related dividends that vested had a fair value of $3.7 million and $4.2 million, respectively, and the related tax benefits were $0.8 million and $0.6 million, respectively. As of September 30, 2023, there was $5.2 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 1.9 years. Long-term incentive plan payable in stock. The 2021-23, 2022-24 and 2023-25 long-term incentive plans (LTIP) provide for performance awards under the EIP of shares of HEI common stock based on the satisfaction of performance goals, including a market condition goal. The number of shares of HEI common stock that may be awarded is fixed on the date the grants are made, subject to the achievement of specified performance levels and calculated dividend equivalents. The potential payout varies from 0% to 200% of the number of target shares, depending on the achievement of the goals. The market condition goal is based on HEI’s total shareholder return (TSR) compared to the Peer Group (Edison Electric Institute Index (EEI Index) for the 2021-23 and 2022-24 performance periods, and compared to the Company's compensation peer group consisting of companies in the EEI Index and approved by the Company's Compensation and Human Capital Management Committee for the 2023-25 performance period), in each case over the relevant three-year period. The other performance condition goals relate to EPS growth, cumulative EPS, return on average common equity (ROACE), renewable portfolio standards, carbon emissions reduction, Hawaiian Electric’s net income growth, ASB’s efficiency ratio and strategic initiatives and Pacific Current’s EBITDA growth and return on average invested capital. LTIP linked to TSR . Information about HEI’s LTIP grants linked to TSR was as follows: Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 79,284 $ 50.28 76,730 $ 47.74 71,574 $ 47.67 90,974 $ 42.86 Granted — — — — 27,123 55.98 26,469 54.92 Vested (issued or unissued and cancelled) — — — — (18,691) 48.62 (29,042) 41.07 Forfeited — — (4,829) 48.52 (722) 48.92 (16,500) 44.33 Outstanding, end of period 79,284 $ 50.28 71,901 $ 47.69 79,284 $ 50.28 71,901 $ 47.69 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ — $ 1.5 $ 1.5 (1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. The grant date fair values of the shares were determined using a Monte Carlo simulation model utilizing actual information for the common shares of HEI and the Peer Group for the period from the beginning of the performance period to the grant date and estimated future stock volatility of HEI and the Peer Group over the remaining three-year performance period. The expected stock volatility assumptions for HEI and the 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: 2023 2022 Risk-free interest rate 4.19 % 1.71 % Expected life in years 3 3 Expected volatility 33.1 % 31.0 % Range of expected volatility for Peer Group 28.7% to 38.8% 25.4% to 76.7% Grant date fair value (per share) $55.98 $54.92 There were no share-based LTIP awards linked to TSR with a vesting date in 2023. For the nine months ended September 30, 2022, total vested LTIP awards linked to TSR and related dividends had a fair value of $0.8 million and the related tax benefits were $0.1 million. As of September 30, 2023, there was $1.6 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 1.2 years. LTIP awards linked to other performance conditions . Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 357,477 $ 38.78 293,711 $ 39.91 309,589 $ 39.50 306,342 $ 38.42 Granted — — — — 108,499 42.41 105,860 41.31 Vested — — — — (62,778) 48.07 (71,807) 37.68 Increase above target 4,277 38.02 — — 10,278 37.77 — — Forfeited — — (19,316) 38.60 (3,834) 43.53 (66,000) 37.31 Outstanding, end of period 361,754 $ 39.17 274,395 $ 40.00 361,754 $ 39.17 274,395 $ 40.00 Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) $ — $ — $ 4.6 $ 4.4 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For the nine months ended September 30, 2023 and 2022, total vested LTIP awards linked to other performance conditions and related dividends had a fair value of $2.9 million and $3.2 million, respectively, and the related tax benefits were $0.6 million and $0.4 million, respectively. As of September 30, 2023, there was $5.4 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 1.2 years. |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Company’s and the Utilities’ effective tax rates (combined federal and state income tax rates) for the nine months ended September 30, 2023 were 20% and 22%, respectively. These rates differed from the combined statutory rates, due primarily to higher nontaxable bank-owned life insurance, partially offset by the Utilities’ lower amortization of excess deferred income taxes related to the provision in the 2017 Tax Cuts and Jobs Act that lowered the federal income tax rate from 35% to 21%. In August 2020, the Internal Revenue Service notified the Company that its 2017 and 2018 income tax returns would be examined. The Company was previously audited every year through 2011, at which time the IRS changed their internal policies regarding audit frequency. The audit is still in progress. The Company has not been notified of any material audit adjustments to date. The Inflation Reduction Act of 2022 (IRA) was signed by President Biden on August 16, 2022. Key provisions under the IRA include a 15% corporate alternative minimum tax (CAMT) imposed on certain large corporations and a 1% excise tax on stock repurchases after December 31, 2022. Based on current interpretation of the law and current guidance available we do not believe HEI will be impacted by the CAMT or stock repurchase excise tax provisions. The IRA also creates new tax credits and enhances others to stimulate investment in renewable energy sources. Certain provisions of the IRA became effective beginning tax year 2023. The Company continues to monitor guidance and assess related tax planning opportunities. |
Cash flows
Cash flows | 9 Months Ended |
Sep. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash flows | Cash flows Nine months ended September 30 2023 2022 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates, net of amounts capitalized $ 104 $ 59 Income taxes paid (including refundable credits) 28 26 Income taxes refunded (including refundable credits) 1 2 Hawaiian Electric consolidated Interest paid to non-affiliates 45 40 Income taxes paid (including refundable credits) 38 46 Income taxes refunded (including refundable credits) 2 — Supplemental disclosures of noncash activities HEI consolidated Property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 9 6 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 45 34 Increase related to an acquisition (investing) — 15 Right-of-use assets obtained in exchange for finance lease obligations (financing) 76 48 Right-of-use assets obtained in exchange for operating lease obligations (investing) 1 48 Property, plant, equipment and other assets received in exchange for the assumption of debt associated with a business acquisition (investing) — 68 Debt, lease liabilities and other liabilities assumed in business acquisition (financing) — 68 Common stock issued (gross) for director and executive/management compensation (financing) 1 8 10 Obligations to fund low income housing investments (investing) 7 9 Loans transferred from held for investment to held for sale (investing) 95 — Transfer of retail repurchase agreements to deposit liabilities (financing) 98 — Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 9 6 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 43 31 Increase related to an acquisition (investing) — 15 Right-of-use assets obtained in exchange for finance lease obligations (financing) 76 48 Right-of-use assets obtained in exchange for operating lease obligations (investing) — 44 1 The amounts shown represent the market value of common stock issued for director and executive/management compensation and withheld to satisfy statutory tax liabilities. |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements Fair value measurement and disclosure valuation methodology. The following are descriptions of the valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial instruments not carried at fair value: Short-term borrowings—other than bank . The carrying amount of short-term borrowings approximated fair value because of the short maturity of these instruments. Investment securities . The fair value of ASB’s investment securities is determined quarterly through pricing obtained from independent third-party pricing services or from brokers not affiliated with the trade. Non-binding broker quotes are infrequent and generally occur for new securities that are settled close to the month-end pricing date. The third-party pricing vendors ASB uses for pricing its securities are reputable firms that provide pricing services on a global basis and have processes in place to ensure quality and control. The third-party pricing services use a variety of methods to determine the fair value of securities that fall under Level 2 of ASB’s fair value measurement hierarchy. Among the considerations are quoted prices for similar securities in an active market, yield spreads for similar trades, adjustments for liquidity, size, collateral characteristics, historic and generic prepayment speeds, and other observable market factors. To enhance the robustness of the pricing process, ASB will on a quarterly basis compare its standard third-party vendor’s price with that of another third-party vendor. If the prices are within an acceptable tolerance range, the price of the standard vendor will be accepted. If the variance is beyond the tolerance range, an evaluation will be conducted by ASB and a challenge to the price may be made. Fair value in such cases will be based on the value that best reflects the data and observable characteristics of the security. In all cases, the fair value used will have been independently determined by a third-party pricing vendor or non-affiliated broker. The fair value of the mortgage revenue bonds is estimated using a discounted cash flow model to calculate the present value of future principal and interest payments and, therefore is classified within Level 3 of the valuation hierarchy. Loans held for sale . Residential and commercial loans are carried at the lower of cost or market and are valued using market observable pricing inputs, which are derived from third party loan sales and, therefore, are classified within Level 2 of the valuation hierarchy. Loans held for investment . Fair value of loans held for investment is derived using a discounted cash flow approach which includes an evaluation of the underlying loan characteristics. The valuation model uses loan characteristics which includes product type, maturity dates and the underlying interest rate of the portfolio. This information is input into the valuation models along with various forecast valuation assumptions including prepayment forecasts, to determine the discount rate. These assumptions are derived from internal and third party sources. Since the valuation is derived from model-based techniques, ASB includes loans held for investment within Level 3 of the valuation hierarchy. Collateral dependent loans . Collateral dependent loans have been adjusted to fair value. When a loan is identified as collateral dependent, the Company measures the impairment using the current fair value of the collateral, less selling costs. Depending on the characteristics of a loan, the fair value of collateral is generally estimated by obtaining external appraisals, but in some cases, the value of the collateral may be estimated as having little or no value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. If it is determined that the value of the collateral dependent loan is less than its recorded investment, the Company recognizes this impairment and adjusts the carrying value of the loan to fair value through the allowance for credit losses. Real estate acquired in settlement of loans . Foreclosed assets are initially measured at fair value (less estimated costs to sell) and subsequently measured at the lower of the carrying value or fair value less selling costs. Fair values 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 marketplace that are observable and are classified as Level 2 measurements. Interest rate swaps . The Company measures its interest rate swaps at fair value. The fair values of the Company's interest rate swaps are based on the estimated amounts that the Company would receive or pay to terminate the contracts at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs. The fair values of the Company's interest rate swaps are classified as a Level 2 measurements. The following table presents the carrying or notional amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments. Estimated fair value (in thousands) Carrying or notional amount Quoted prices in Significant Significant Total September 30, 2023 Financial assets HEI consolidated Available-for-sale investment securities $ 1,266,412 $ — $ 1,251,918 $ 14,494 $ 1,266,412 Held-to-maturity investment securities 1,212,005 — 1,052,221 — 1,052,221 Loans, net 6,116,811 — 2,174 5,541,812 5,543,986 Mortgage servicing rights 8,376 — — 18,867 18,867 Derivative assets 19,044 15 1,350 — 1,365 Financial liabilities HEI consolidated Deposit liabilities 1,050,692 — 1,035,501 — 1,035,501 Other bank borrowings 750,000 — 743,366 — 743,366 Long-term debt, net—other than bank 2,944,589 — 2,120,573 — 2,120,573 Derivative liabilities 22,949 — 1,344 — 1,344 Hawaiian Electric consolidated Long-term debt, net 2,034,040 — 1,400,901 — 1,400,901 December 31, 2022 Financial assets HEI consolidated Available-for-sale investment securities $ 1,429,667 $ — $ 1,414,765 $ 14,902 $ 1,429,667 Held-to-maturity investment securities 1,251,747 — 1,150,971 — 1,150,971 Loans, net 5,907,514 — 821 5,453,381 5,454,202 Mortgage servicing rights 9,047 — — 17,646 17,646 Derivative assets 16,220 18 1,330 — 1,348 Financial liabilities HEI consolidated Deposit liabilities 611,718 — 597,617 — 597,617 Short-term borrowings—other than bank 172,568 — 172,568 — 172,568 Other bank borrowings 695,120 — 695,095 — 695,095 Long-term debt, net—other than bank 2,384,980 — 2,122,605 — 2,122,605 Derivative liabilities 22,949 — 472 — 472 Hawaiian Electric consolidated Short-term borrowings 87,967 — 87,967 — 87,967 Long-term debt, net 1,684,816 — 1,487,496 — 1,487,496 Fair value measurements on a recurring basis. Assets and liabilities measured at fair value on a recurring basis were as follows: September 30, 2023 December 31, 2022 Fair value measurements using Fair value measurements using (in thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Available-for-sale investment securities (bank segment) Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ — $ 1,145,167 $ — $ — $ 1,292,968 $ — U.S. Treasury and federal agency obligations — 75,000 — — 81,063 — Corporate bonds — 31,751 — — 40,734 — Mortgage revenue bonds — — 14,494 — — 14,902 $ — $ 1,251,918 $ 14,494 $ — $ 1,414,765 $ 14,902 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 54 $ — $ — $ 9 $ — Forward commitments (bank segment) 1 15 — — 18 — — Interest rate swap (Other segment) 2 — 1,296 — — 1,321 — $ 15 $ 1,350 $ — $ 18 $ 1,330 $ — Derivative liabilities Interest rate swap (Other segment) 2 $ — $ 1,344 $ — $ — $ 472 $ — 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 nine months ended September 30, 2023 and 2022. The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: Three months ended September 30 Nine months ended September 30 Mortgage revenue bonds 2023 2022 2023 2022 (in thousands) Beginning balance $ 14,630 $ 15,165 $ 14,902 $ 15,427 Principal payments received (136) (132) (408) (394) Purchases — — — — Unrealized gain (loss) included in other comprehensive income — — — — Ending balance $ 14,494 $ 15,033 $ 14,494 $ 15,033 Mortgage revenue bonds are issued by the Department of Budget and Finance of the State of Hawaii. The Company estimates the fair value by using a discounted cash flow model to calculate the present value of estimated future principal and interest payments. The unobservable input used in the fair value measurement is the weighted average discount rate. As of September 30, 2023, the weighted average discount rate was 5.65%, which was derived by incorporating a credit spread over the one month London Inter-Bank Offered Rate (LIBOR). 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 September 30, 2023 and December 31, 2022, there were no financial instruments measured at fair value on a nonrecurring basis. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 41,589 | $ 62,553 | $ 151,866 | $ 185,207 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of presentation (Policies
Basis of presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information, the instructions to SEC Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the unaudited condensed consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. |
Recent accounting pronouncements | Recent accounting pronouncements. Credit Losses. In March 2022, Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2022-02, “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the accounting guidance for Troubled Debt Restructurings (TDRs) by creditors in Subtopic 310-40, Receivables-Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 to determine whether a modification results in a new loan or a continuation of an existing loan. The amendments in this update also require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments-Credit Losses-Measured at Amortized Cost.” Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 325-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivable by year of origination. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. ASB updated the accounting for certain loan refinancings and restructurings, and included the required disclosures in the Notes herein in accordance with ASU No. 2022-02. |
Fair value measurements | The following are descriptions of the valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial instruments not carried at fair value: Short-term borrowings—other than bank . The carrying amount of short-term borrowings approximated fair value because of the short maturity of these instruments. Investment securities . The fair value of ASB’s investment securities is determined quarterly through pricing obtained from independent third-party pricing services or from brokers not affiliated with the trade. Non-binding broker quotes are infrequent and generally occur for new securities that are settled close to the month-end pricing date. The third-party pricing vendors ASB uses for pricing its securities are reputable firms that provide pricing services on a global basis and have processes in place to ensure quality and control. The third-party pricing services use a variety of methods to determine the fair value of securities that fall under Level 2 of ASB’s fair value measurement hierarchy. Among the considerations are quoted prices for similar securities in an active market, yield spreads for similar trades, adjustments for liquidity, size, collateral characteristics, historic and generic prepayment speeds, and other observable market factors. To enhance the robustness of the pricing process, ASB will on a quarterly basis compare its standard third-party vendor’s price with that of another third-party vendor. If the prices are within an acceptable tolerance range, the price of the standard vendor will be accepted. If the variance is beyond the tolerance range, an evaluation will be conducted by ASB and a challenge to the price may be made. Fair value in such cases will be based on the value that best reflects the data and observable characteristics of the security. In all cases, the fair value used will have been independently determined by a third-party pricing vendor or non-affiliated broker. The fair value of the mortgage revenue bonds is estimated using a discounted cash flow model to calculate the present value of future principal and interest payments and, therefore is classified within Level 3 of the valuation hierarchy. Loans held for sale . Residential and commercial loans are carried at the lower of cost or market and are valued using market observable pricing inputs, which are derived from third party loan sales and, therefore, are classified within Level 2 of the valuation hierarchy. Loans held for investment . Fair value of loans held for investment is derived using a discounted cash flow approach which includes an evaluation of the underlying loan characteristics. The valuation model uses loan characteristics which includes product type, maturity dates and the underlying interest rate of the portfolio. This information is input into the valuation models along with various forecast valuation assumptions including prepayment forecasts, to determine the discount rate. These assumptions are derived from internal and third party sources. Since the valuation is derived from model-based techniques, ASB includes loans held for investment within Level 3 of the valuation hierarchy. Collateral dependent loans . Collateral dependent loans have been adjusted to fair value. When a loan is identified as collateral dependent, the Company measures the impairment using the current fair value of the collateral, less selling costs. Depending on the characteristics of a loan, the fair value of collateral is generally estimated by obtaining external appraisals, but in some cases, the value of the collateral may be estimated as having little or no value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. If it is determined that the value of the collateral dependent loan is less than its recorded investment, the Company recognizes this impairment and adjusts the carrying value of the loan to fair value through the allowance for credit losses. Real estate acquired in settlement of loans . Foreclosed assets are initially measured at fair value (less estimated costs to sell) and subsequently measured at the lower of the carrying value or fair value less selling costs. Fair values 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 marketplace that are observable and are classified as Level 2 measurements. Interest rate swaps . The Company measures its interest rate swaps at fair value. The fair values of the Company's interest rate swaps are based on the estimated amounts that the Company would receive or pay to terminate the contracts at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs. The fair values of the Company's interest rate swaps are classified as a Level 2 measurements. |
Maui windstorm and wildfires (T
Maui windstorm and wildfires (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of Pending Contribution Expense, Offset by Probably Insurance Recovery | The Utilities charged the pending contribution to expense, included in “Expenses-Other operation and maintenance” and “Expenses-Electric utility” in the Hawaiian Electric and subsidiaries Condensed Consolidated Statements of Income and HEI and subsidiaries’ Condensed Consolidated Statements of Income, respectively, which was offset by the probable insurance recovery. (in millions) September 30, 2023 2023 Maui windstorm and wildfires One ‘Ohana Initiative contribution 1 $ 75 Insurance recovery 2 (75) 1 As of September 30, 2023, One ‘Ohana Initiative contribution is included in “Current liabilities-Other” and “Liabilities-Other” in the Hawaiian Electric and subsidiaries’ Condensed Consolidated Balance Sheet and HEI and subsidiaries’ Condensed Consolidated Balance Sheet, respectively. 2 As of September 30, 2023, One ‘Ohana Initiative insurance recoveries is included in “Current assets-Other accounts receivables, net” and “Assets-Accounts receivable and unbilled revenues, net” in the Hawaiian Electric and subsidiaries’ Condensed Consolidated Balance Sheet and HEI and subsidiaries’ Condensed Consolidated Balance Sheet, respectively. |
Segment financial information (
Segment financial information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | (in thousands) Electric utility Bank Other Total Three months ended September 30, 2023 Revenues $ 794,987 $ 100,974 $ 5,912 $ 901,873 Income (loss) before income taxes $ 55,415 $ 12,749 $ (19,054) $ 49,110 Income taxes (benefit) 11,456 1,384 (5,319) 7,521 Net income (loss) 43,959 11,365 (13,735) 41,589 Preferred stock dividends of subsidiaries 498 — (27) 471 Net income (loss) for common stock $ 43,461 $ 11,365 $ (13,708) $ 41,118 Nine months ended September 30, 2023 Revenues $ 2,419,539 $ 291,716 $ 14,540 $ 2,725,795 Income (loss) before income taxes $ 175,391 $ 61,511 $ (48,121) $ 188,781 Income taxes (benefit) 38,126 11,380 (12,591) 36,915 Net income (loss) 137,265 50,131 (35,530) 151,866 Preferred stock dividends of subsidiaries 1,496 — (79) 1,417 Net income (loss) for common stock $ 135,769 $ 50,131 $ (35,451) $ 150,449 Total assets (at September 30, 2023) $ 7,078,447 $ 9,657,428 $ 255,943 $ 16,991,818 Three months ended September 30, 2022 Revenues $ 955,971 $ 81,411 $ 4,815 $ 1,042,197 Income (loss) before income taxes $ 63,712 $ 27,281 $ (11,088) $ 79,905 Income taxes (benefit) 13,450 6,525 (2,623) 17,352 Net income (loss) 50,262 20,756 (8,465) 62,553 Preferred stock dividends of subsidiaries 498 — (27) 471 Net income (loss) for common stock $ 49,764 $ 20,756 $ (8,438) $ 62,082 Nine months ended September 30, 2022 Revenues from external customers and other sources $ 2,483,632 $ 231,850 $ 7,390 $ 2,722,872 Intersegment revenues (eliminations) 4 — (4) — Revenues $ 2,483,636 $ 231,850 $ 7,386 $ 2,722,872 Income (loss) before income taxes $ 179,771 $ 79,605 $ (25,774) $ 233,602 Income taxes (benefit) 37,967 17,513 (7,085) 48,395 Net income (loss) 141,804 62,092 (18,689) 185,207 Preferred stock dividends of subsidiaries 1,496 — (79) 1,417 Net income (loss) for common stock $ 140,308 $ 62,092 $ (18,610) $ 183,790 Total assets (at December 31, 2022) $ 6,597,467 $ 9,545,970 $ 140,807 $ 16,284,244 |
Electric utility segment (Table
Electric utility segment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Electric Utility Subsidiary [Abstract] | |
Schedule of Purchases From All IPPs | Purchases from all IPPs were as follows: Three months ended September 30 Nine months ended September 30 (in millions) 2023 2022 2023 2022 Kalaeloa $ 77 $ 101 $ 211 $ 244 AES Hawaii 1 — 21 — 82 HPOWER 17 18 51 56 Hamakua Energy 13 16 52 46 Puna Geothermal Venture 7 13 24 37 Wind IPPs 42 37 99 93 Solar IPPs 21 18 57 44 Other IPPs 2 1 1 5 5 Total IPPs $ 178 $ 225 $ 499 $ 607 1 The term of the PPA with AES Hawaii expired on September 1, 2022 and the AES Hawaii coal plant ceased operations. 2 Includes hydro power and other PPAs. |
Schedule of Net Annual Incremental Amounts Proposed to be Collected (Refunded) | The filing reflected ARA revenues for 2023 to be collected from January 1 through December 31, 2024, as follows: (in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Total 2024 ARA revenues $ 16.6 $ 4.1 $ 4.0 $ 24.7 Management Audit savings commitment (4.6) (1.0) (1.0) (6.6) Enterprise Resource Planning system benefits savings — (1.3) (1.9) (3.2) COVID-19 related cost recovery 2.6 0.2 0.6 3.4 Net 2024 ARA revenues $ 14.6 $ 2.0 $ 1.7 $ 18.3 Note: Columns may not foot due to rounding. The proposed net incremental amounts between the 2023 spring and fall revenue reports are shown in the following table. The amounts are to be collected (refunded) from January 1 through December 31, 2024 under the RBA rate tariffs, which were proposed in the 2023 fall revenue report filing and are subject to PUC approval. (in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Total Incremental RAM revenues and ARA revenues $ 19.2 $ 3.0 $ 2.7 $ 24.9 Annual change in accrued RBA balance through September 30, 2023 (and associated revenue taxes) 3.6 (0.3) 0.1 3.4 Incremental Performance Incentive Mechanisms (net) 0.1 — — 0.1 Net incremental amount to be collected under the RBA rate tariffs $ 22.9 $ 2.7 $ 2.8 $ 28.4 Note: Columns may not foot due to rounding. |
Schedule of Condensed Consolidating Statements of Income | Condensed Consolidating Statement of Income Three months ended September 30, 2023 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiary Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 570,323 116,192 108,472 — — $ 794,987 Expenses Fuel oil 196,223 30,956 40,259 — — 267,438 Purchased power 132,536 30,265 14,994 — — 177,795 Other operation and maintenance 83,528 21,351 37,629 — — 142,508 Depreciation 41,276 10,635 9,254 — — 61,165 Taxes, other than income taxes 53,511 10,857 10,355 — — 74,723 Total expenses 507,074 104,064 112,491 — — 723,629 Operating income (loss) 63,249 12,128 (4,019) — — 71,358 Allowance for equity funds used during construction 3,005 366 629 — — 4,000 Equity in earnings of subsidiaries 3,005 — — — (3,005) — Retirement defined benefits credit (expense)—other than service costs 992 163 (23) — — 1,132 Interest expense and other charges, net (16,295) (2,988) (3,164) — — (22,447) Allowance for borrowed funds used during construction 1,047 117 208 — — 1,372 Income (loss) before income taxes 55,003 9,786 (6,369) — (3,005) 55,415 Income taxes 11,272 2,234 (2,050) — — 11,456 Net income (loss) 43,731 7,552 (4,319) — (3,005) 43,959 Preferred stock dividends of subsidiaries — 133 95 — — 228 Net income (loss) attributable to Hawaiian Electric 43,731 7,419 (4,414) — (3,005) 43,731 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income (loss) for common stock $ 43,461 7,419 (4,414) — (3,005) $ 43,461 Condensed Consolidating Statement of Income Three months ended September 30, 2022 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiary Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 693,281 130,858 131,910 — (78) $ 955,971 Expenses Fuel oil 280,447 40,540 62,615 — — 383,602 Purchased power 171,470 37,263 16,476 — — 225,209 Other operation and maintenance 77,115 21,882 22,113 — — 121,110 Depreciation 39,474 10,350 8,887 — — 58,711 Taxes, other than income taxes 64,051 12,026 12,213 — — 88,290 Total expenses 632,557 122,061 122,304 — — 876,922 Operating income 60,724 8,797 9,606 — (78) 79,049 Allowance for equity funds used during construction 2,063 206 283 — — 2,552 Equity in earnings of subsidiaries 10,577 — — — (10,577) — Retirement defined benefits credit (expense)—other than service costs 760 166 (31) — — 895 Interest expense and other charges, net (14,221) (2,716) (2,750) — 78 (19,609) Allowance for borrowed funds used during construction 674 63 88 — — 825 Income before income taxes 60,577 6,516 7,196 — (10,577) 63,712 Income taxes 10,543 1,424 1,483 — — 13,450 Net income 50,034 5,092 5,713 — (10,577) 50,262 Preferred stock dividends of subsidiaries — 133 95 — — 228 Net income attributable to Hawaiian Electric 50,034 4,959 5,618 — (10,577) 50,034 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 49,764 4,959 5,618 — (10,577) $ 49,764 Condensed Consolidating Statement of Income Nine months ended September 30, 2023 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiary Consolidating adjustments Hawaiian Electric Revenues $ 1,742,542 343,554 333,573 — (130) $ 2,419,539 Expenses Fuel oil 663,521 79,187 138,984 — — 881,692 Purchased power 362,275 101,597 35,118 — — 498,990 Other operation and maintenance 255,728 64,367 87,089 — — 407,184 Depreciation 123,114 31,906 27,761 — — 182,781 Taxes, other than income taxes 164,510 31,983 31,541 — — 228,034 Total expenses 1,569,148 309,040 320,493 — — 2,198,681 Operating income 173,394 34,514 13,080 — (130) 220,858 Allowance for equity funds used during construction 8,604 1,004 1,465 — — 11,073 Equity in earnings of subsidiaries 25,960 — — — (25,960) — Retirement defined benefits credit (expense)—other than service costs 2,801 500 (74) — — 3,227 Interest expense and other charges, net (45,594) (8,794) (9,307) — 130 (63,565) Allowance for borrowed funds used during construction 2,995 321 482 — — 3,798 Income before income taxes 168,160 27,545 5,646 — (25,960) 175,391 Income taxes 31,581 6,261 284 — — 38,126 Net income 136,579 21,284 5,362 — (25,960) 137,265 Preferred stock dividends of subsidiaries — 400 286 — — 686 Net income attributable to Hawaiian Electric 136,579 20,884 5,076 — (25,960) 136,579 Preferred stock dividends of Hawaiian Electric 810 — — — — 810 Net income for common stock $ 135,769 20,884 5,076 — (25,960) $ 135,769 Condensed Consolidating Statement of Income Nine months ended September 30, 2022 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiary Consolidating adjustments Hawaiian Electric Revenues $ 1,769,995 363,888 349,866 — (113) $ 2,483,636 Expenses Fuel oil 619,169 98,856 156,518 — — 874,543 Purchased power 460,855 106,710 39,262 — — 606,827 Other operation and maintenance 243,478 63,427 64,354 — — 371,259 Depreciation 118,459 31,053 26,409 — — 175,921 Taxes, other than income taxes 165,350 33,436 32,502 — — 231,288 Total expenses 1,607,311 333,482 319,045 — — 2,259,838 Operating income 162,684 30,406 30,821 — (113) 223,798 Allowance for equity funds used during construction 5,999 616 816 — — 7,431 Equity in earnings of subsidiaries 36,475 — — — (36,475) — Retirement defined benefits credit (expense)—other than service costs 2,471 500 (95) — — 2,876 Interest expense and other charges, net (40,833) (7,967) (8,048) — 113 (56,735) Allowance for borrowed funds used during construction 1,962 190 249 — — 2,401 Income before income taxes 168,758 23,745 23,743 — (36,475) 179,771 Income taxes 27,640 5,351 4,976 — — 37,967 Net income 141,118 18,394 18,767 — (36,475) 141,804 Preferred stock dividends of subsidiaries — 400 286 — — 686 Net income attributable to Hawaiian Electric 141,118 17,994 18,481 — (36,475) 141,118 Preferred stock dividends of Hawaiian Electric 810 — — — — 810 Net income for common stock $ 140,308 17,994 18,481 — (36,475) $ 140,308 Statements of Income and Comprehensive Income Data Three months ended September 30 Nine months ended September 30 (in thousands) 2023 2022 2023 2022 Interest and dividend income Interest and fees on loans $ 71,540 $ 53,365 $ 204,348 $ 147,499 Interest and dividends on investment securities 14,096 15,052 42,508 43,729 Total interest and dividend income 85,636 68,417 246,856 191,228 Interest expense Interest on deposit liabilities 14,446 1,704 30,944 3,572 Interest on other borrowings 8,598 1,055 25,171 1,199 Total interest expense 23,044 2,759 56,115 4,771 Net interest income 62,592 65,658 190,741 186,457 Provision for credit losses 8,835 (186) 10,053 (692) Net interest income after provision for credit losses 53,757 65,844 180,688 187,149 Noninterest income Fees from other financial services 4,703 4,763 14,391 15,066 Fee income on deposit liabilities 4,924 4,879 14,027 14,122 Fee income on other financial products 2,440 2,416 7,952 7,663 Bank-owned life insurance 2,303 122 5,683 661 Mortgage banking income 341 181 701 1,630 Gain on sale of real estate — — 495 1,002 Other income, net 627 633 2,106 1,480 Total noninterest income 15,338 12,994 45,355 41,624 Noninterest expense Compensation and employee benefits 29,902 28,597 89,500 83,478 Occupancy 5,154 5,577 16,281 16,996 Data processing 5,133 4,509 15,240 13,144 Services 3,627 2,751 8,911 7,712 Equipment 3,125 2,432 8,728 7,163 Office supplies, printing and postage 1,022 1,123 3,296 3,256 Marketing 984 925 2,834 2,877 Other expense 7,399 5,643 19,742 14,542 Total noninterest expense 56,346 51,557 164,532 149,168 Income before income taxes 12,749 27,281 61,511 79,605 Income taxes 1,384 6,525 11,380 17,513 Net income 11,365 20,756 50,131 62,092 Other comprehensive income (loss), net of taxes (34,231) (98,942) (23,011) (310,218) Comprehensive income (loss) $ (22,866) $ (78,186) $ 27,120 $ (248,126) Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended September 30 Nine months ended September 30 (in thousands) 2023 2022 2023 2022 Interest and dividend income $ 85,636 $ 68,417 $ 246,856 $ 191,228 Noninterest income 15,338 12,994 45,355 41,624 Less: Gain on sale of real estate — — 495 1,002 *Revenues-Bank 100,974 81,411 291,716 231,850 Total interest expense 23,044 2,759 56,115 4,771 Provision for credit losses 8,835 (186) 10,053 (692) Noninterest expense 56,346 51,557 164,532 149,168 Less: Gain on sale of real estate — — 495 1,002 Less: Retirement defined benefits credit—other than service costs (190) (181) (564) (552) *Expenses-Bank 88,415 54,311 230,769 152,797 *Operating income-Bank 12,559 27,100 60,947 79,053 Add back: Retirement defined benefits credit—other than service costs (190) (181) (564) (552) Income before income taxes $ 12,749 $ 27,281 $ 61,511 $ 79,605 |
Schedule of Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income Three months ended September 30, 2023 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net income (loss) for common stock $ 43,461 7,419 (4,414) — (3,005) $ 43,461 Other comprehensive loss, net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net gains recognized during the period in net periodic benefit cost, net of taxes (547) (55) (71) — 126 (547) Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes 470 54 63 — (117) 470 Other comprehensive loss, net of taxes (77) (1) (8) — 9 (77) Comprehensive income (loss) attributable to common shareholder $ 43,384 7,418 (4,422) — (2,996) $ 43,384 Condensed Consolidating Statement of Comprehensive Income Three months ended September 30, 2022 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net income for common stock $ 49,764 4,959 5,618 — (10,577) $ 49,764 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes 5,411 768 732 — (1,500) 5,411 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (5,303) (766) (733) — 1,499 (5,303) Other comprehensive income (loss), net of taxes 108 2 (1) — (1) 108 Comprehensive income attributable to common shareholder $ 49,872 4,961 5,617 — (10,578) $ 49,872 Condensed Consolidating Statement of Comprehensive Income Nine months ended September 30, 2023 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiary Consolidating adjustments Hawaiian Electric Consolidated Net income for common stock $ 135,769 20,884 5,076 — (25,960) $ 135,769 Other comprehensive loss, net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net gains recognized during the period in net periodic benefit cost, net of taxes (1,487) (166) (200) — 366 (1,487) Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes 1,321 157 177 — (334) 1,321 Other comprehensive loss, net of taxes (166) (9) (23) — 32 (166) Comprehensive income attributable to common shareholder $ 135,603 20,875 5,053 — (25,928) $ 135,603 Condensed Consolidating Statement of Comprehensive Income Nine months ended September 30, 2022 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiary Consolidating adjustments Hawaiian Electric Consolidated Net income for common stock $ 140,308 17,994 18,481 — (36,475) $ 140,308 Other comprehensive income, net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes 9,782 1,366 1,938 (3,304) 9,782 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (9,572) (1,362) (1,938) 3,300 (9,572) Other comprehensive income, net of taxes 210 4 — — (4) 210 Comprehensive income attributable to common shareholder $ 140,518 17,998 18,481 — (36,479) $ 140,518 |
Schedule of Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet September 30, 2023 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consoli- Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 42,859 5,645 3,594 — — $ 52,098 Plant and equipment 5,422,393 1,448,183 1,329,252 — — 8,199,828 Right-of-use assets - finance lease 88,297 36,075 — — — 124,372 Less accumulated depreciation (1,953,609) (663,303) (605,118) — — (3,222,030) Construction in progress 258,204 35,281 63,804 — — 357,289 Utility property, plant and equipment, net 3,858,144 861,881 791,532 — — 5,511,557 Nonutility property, plant and equipment, less accumulated depreciation 5,295 115 1,532 — — 6,942 Total property, plant and equipment, net 3,863,439 861,996 793,064 — — 5,518,499 Investment in wholly owned subsidiaries, at equity 703,311 — — — (703,311) — Current assets Cash and cash equivalents 233,518 32,716 8,543 77 — 274,854 Restricted cash 2,000 — — — — 2,000 Customer accounts receivable, net 172,730 34,550 34,482 — — 241,762 Accrued unbilled revenues, net 132,552 22,062 24,713 — — 179,327 Other accounts receivable, net 115,498 7,124 11,778 — (44,577) 89,823 Fuel oil stock, at average cost 112,468 14,400 25,900 — — 152,768 Materials and supplies, at average cost 58,834 13,077 27,615 — — 99,526 Prepayments and other 41,304 5,468 7,766 — — 54,538 Regulatory assets 49,489 5,110 3,322 — — 57,921 Total current assets 918,393 134,507 144,119 77 (44,577) 1,152,519 Other long-term assets Operating lease right-of-use assets 36,627 29,193 10,241 — — 76,061 Regulatory assets 146,735 14,583 11,958 — — 173,276 Other 112,601 33,011 29,468 — (16,988) 158,092 Total other long-term assets 295,963 76,787 51,667 — (16,988) 407,429 Total assets $ 5,781,106 1,073,290 988,850 77 (764,876) $ 7,078,447 Capitalization and liabilities Capitalization Common stock equity $ 2,383,023 352,170 351,064 77 (703,311) $ 2,383,023 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,426,353 249,308 258,383 — — 1,934,044 Total capitalization 3,831,669 608,478 614,447 77 (703,311) 4,351,360 Current liabilities Current portion of operating lease liabilities 7,308 6,942 2,762 — — 17,012 Current portion of long-term debt 49,998 19,999 29,999 — — 99,996 Accounts payable 141,738 25,436 34,525 — — 201,699 Interest and preferred dividends payable 21,304 3,924 4,830 — — 30,058 Taxes accrued, including revenue taxes 196,037 40,706 37,529 — — 274,272 Regulatory liabilities 9,999 6,842 9,484 — — 26,325 Other 148,400 23,182 36,302 — (44,577) 163,307 Total current liabilities 574,784 127,031 155,431 — (44,577) 812,669 Deferred credits and other liabilities Operating lease liabilities 35,967 22,575 7,757 — — 66,299 Finance lease liabilities 82,935 35,205 — — — 118,140 Deferred income taxes 274,577 50,405 60,693 — — 385,675 Regulatory liabilities 770,268 197,045 108,136 — — 1,075,449 Unamortized tax credits 65,153 12,410 12,184 — — 89,747 Defined benefit pension liability 65,872 — — — (16,988) 48,884 Other 79,881 20,141 30,202 — — 130,224 Total deferred credits and other liabilities 1,374,653 337,781 218,972 — (16,988) 1,914,418 Total capitalization and liabilities $ 5,781,106 1,073,290 988,850 77 (764,876) $ 7,078,447 Condensed Consolidating Balance Sheet December 31, 2022 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consoli- Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 42,860 5,606 3,594 — — $ 52,060 Plant and equipment 5,260,685 1,425,442 1,293,383 — — 7,979,510 Finance lease right-of-use assets 48,371 — — — — 48,371 Less accumulated depreciation (1,855,150) (644,457) (586,892) — — (3,086,499) Construction in progress 215,560 23,989 35,804 — — 275,353 Utility property, plant and equipment, net 3,712,326 810,580 745,889 — — 5,268,795 Nonutility property, plant and equipment, less accumulated depreciation 5,298 115 1,532 — — 6,945 Total property, plant and equipment, net 3,717,624 810,695 747,421 — — 5,275,740 Investment in wholly owned subsidiaries, at equity 701,833 — — — (701,833) — Current assets Cash and cash equivalents 27,579 5,092 6,494 77 — 39,242 Advances to affiliates — 4,500 21,700 — (26,200) — Customer accounts receivable, net 216,802 39,339 32,197 — — 288,338 Accrued unbilled revenues, net 136,508 23,839 22,933 — — 183,280 Other accounts receivable, net 23,746 5,519 6,686 — (22,384) 13,567 Fuel oil stock, at average cost 153,342 16,964 21,224 — — 191,530 Materials and supplies, at average cost 48,130 9,783 21,655 — — 79,568 Prepayments and other 24,040 6,346 4,137 — (1,041) 33,482 Regulatory assets 46,504 2,435 3,334 — — 52,273 Total current assets 676,651 113,817 140,360 77 (49,625) 881,280 Other long-term assets Operating lease right-of-use assets 42,752 34,283 12,283 — — 89,318 Regulatory assets 154,040 21,816 14,384 — — 190,240 Other 115,028 32,654 29,495 — (16,288) 160,889 Total other long-term assets 311,820 88,753 56,162 — (16,288) 440,447 Total assets $ 5,407,928 1,013,265 943,943 77 (767,746) $ 6,597,467 Capitalization and liabilities Capitalization Common stock equity $ 2,344,170 344,720 357,036 77 (701,833) $ 2,344,170 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,126,915 224,439 233,500 — — 1,584,854 Total capitalization 3,493,378 576,159 595,536 77 (701,833) 3,963,317 Current liabilities Current portion of operating lease liabilities 9,775 6,690 2,630 — — 19,095 Current portion of long-term debt 49,981 19,992 29,989 — — 99,962 Short-term borrowings-non-affiliate 87,967 — — — — 87,967 Short-term borrowings-affiliate 26,200 — — — (26,200) — Accounts payable 143,253 32,113 27,126 — — 202,492 Interest and preferred dividends payable 12,398 2,576 2,282 — (80) 17,176 Taxes accrued, including revenue taxes 207,798 42,436 40,709 — (1,041) 289,902 Regulatory liabilities 13,145 8,553 9,777 — — 31,475 Other 64,659 20,856 22,385 — (22,304) 85,596 Total current liabilities 615,176 133,216 134,898 — (49,625) 833,665 Deferred credits and other liabilities Operating lease liabilities 41,049 27,817 9,849 — — 78,715 Finance lease liabilities 46,048 — — — — 46,048 Deferred income taxes 271,234 50,615 62,581 — — 384,430 Regulatory liabilities 729,683 194,222 100,270 — — 1,024,175 Unamortized tax credits 69,614 13,150 12,536 — — 95,300 Defined benefit pension and other postretirement benefit plans liability 65,907 129 — — (16,288) 49,748 Other 75,839 17,957 28,273 — — 122,069 Total deferred credits and other liabilities 1,299,374 303,890 213,509 — (16,288) 1,800,485 Total capitalization and liabilities $ 5,407,928 1,013,265 943,943 77 (767,746) $ 6,597,467 Balance Sheets Data (in thousands) September 30, 2023 December 31, 2022 Assets Cash and due from banks $ 139,059 $ 153,042 Interest-bearing deposits 124,531 3,107 Cash and cash equivalents 263,590 156,149 Investment securities Available-for-sale, at fair value 1,266,412 1,429,667 Held-to-maturity, at amortized cost (fair value of $1,052,221 and $1,150,971, respectively) 1,212,005 1,251,747 Stock in Federal Home Loan Bank, at cost 18,000 26,560 Loans held for investment 6,191,006 5,978,906 Allowance for credit losses (76,366) (72,216) Net loans 6,114,640 5,906,690 Loans held for sale, at lower of cost or fair value 2,171 824 Other 698,420 692,143 Goodwill 82,190 82,190 Total assets $ 9,657,428 $ 9,545,970 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 2,573,010 $ 2,811,077 Deposit liabilities—interest-bearing 5,651,341 5,358,619 Other borrowings 750,000 695,120 Other 224,136 212,269 Total liabilities 9,198,487 9,077,085 Common stock 1 1 Additional paid-in capital 357,742 355,806 Retained earnings 460,824 449,693 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (350,234) $ (328,904) Retirement benefit plans (9,392) (359,626) (7,711) (336,615) Total shareholder’s equity 458,941 468,885 Total liabilities and shareholder’s equity $ 9,657,428 $ 9,545,970 Other assets Bank-owned life insurance $ 186,143 $ 182,986 Premises and equipment, net 189,950 195,324 Accrued interest receivable 29,361 25,077 Mortgage-servicing rights 8,376 9,047 Low-income housing investments 103,580 106,978 Deferred tax asset 127,735 116,441 Real estate acquired in settlement of loans, net — 115 Other 53,275 56,175 $ 698,420 $ 692,143 Other liabilities Accrued expenses $ 102,540 $ 97,295 Federal and state income taxes payable 845 863 Cashier’s checks 38,483 36,401 Advance payments by borrowers 4,289 9,637 Other 77,979 68,073 $ 224,136 $ 212,269 |
Schedule of Condensed Consolidating Statement of Changes in Common Stock Equity | Condensed Consolidating Statement of Changes in Common Stock Equity Nine months ended September 30, 2023 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Balance, December 31, 2022 $ 2,344,170 344,720 357,036 77 (701,833) $ 2,344,170 Net income for common stock 135,769 20,884 5,076 — (25,960) 135,769 Other comprehensive loss, net of taxes (166) (9) (23) — 32 (166) Common stock dividends (96,750) (13,425) (11,025) — 24,450 (96,750) Balance, September 30, 2023 $ 2,383,023 352,170 351,064 77 (703,311) $ 2,383,023 Condensed Consolidating Statement of Changes in Common Stock Equity Nine months ended September 30, 2022 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Balance, December 31, 2021 $ 2,261,899 332,900 343,260 77 (676,237) $ 2,261,899 Net income for common stock 140,308 17,994 18,481 — (36,475) 140,308 Other comprehensive income, net of taxes 210 4 — — (4) 210 Common stock dividends (94,425) (12,300) (11,400) — 23,700 (94,425) Balance, September 30, 2022 $ 2,307,992 338,598 350,341 77 (689,016) $ 2,307,992 |
Schedule of Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Nine months ended September 30, 2023 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net cash provided by operating activities $ 336,248 59,029 35,284 — (24,450) $ 406,111 Cash flows from investing activities Capital expenditures (217,276) (47,609) (69,612) — — (334,497) Advances from affiliates — 4,500 21,700 — (26,200) — Other 3,179 912 1,125 — — 5,216 Net cash used in investing activities (214,097) (42,197) (46,787) — (26,200) (329,281) Cash flows from financing activities Common stock dividends (96,750) (13,425) (11,025) — 24,450 (96,750) Preferred stock dividends of Hawaiian Electric and subsidiaries (810) (400) (286) — — (1,496) Proceeds from issuance of long-term debt 300,000 25,000 25,000 — — 350,000 Net decrease in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less (114,167) — — — 26,200 (87,967) Payments of obligations under finance leases (1,914) (248) — (2,162) Other (571) (135) (137) — — (843) Net cash provided by financing activities 85,788 10,792 13,552 — 50,650 160,782 Net increase in cash, cash equivalents and restricted cash 207,939 27,624 2,049 — — 237,612 Cash, cash equivalents and restricted cash, beginning of period 27,579 5,092 6,494 77 — 39,242 Cash, cash equivalents and restricted cash, end of period 235,518 32,716 8,543 77 — 276,854 Less: Restricted cash (2,000) — — — — (2,000) Cash and cash equivalents, end of period $ 233,518 32,716 8,543 77 — $ 274,854 Condensed Consolidating Statement of Cash Flows Nine months ended September 30, 2022 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net cash provided by operating activities $ 74,053 38,302 35,512 — (23,700) $ 124,167 Cash flows from investing activities Capital expenditures (152,015) (34,055) (39,806) — — (225,876) Advances from (to) affiliates 1,000 (1,500) (16,000) — 16,500 — Other 4,545 825 1,380 — — 6,750 Net cash used in investing activities (146,470) (34,730) (54,426) — 16,500 (219,126) Cash flows from financing activities Common stock dividends (94,425) (12,300) (11,400) — 23,700 (94,425) Preferred stock dividends of Hawaiian Electric and subsidiaries (810) (400) (286) — — (1,496) Proceeds from issuance of long-term debt 40,000 10,000 10,000 — — 60,000 Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less 114,950 (1,000) — — (16,500) 97,450 Payments of obligations under finance leases (266) — — — — (266) Other (170) (44) (44) — — (258) Net cash provided by (used in) financing activities 59,279 (3,744) (1,730) — 7,200 61,005 Net decrease in cash and cash equivalents (13,138) (172) (20,644) — — (33,954) Cash and cash equivalents, beginning of period 26,433 5,326 23,422 77 — 55,258 Cash and cash equivalents, end of period $ 13,295 5,154 2,778 77 — $ 21,304 |
Bank segment (Tables)
Bank segment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Bank Subsidiary [Abstract] | |
Schedule of Statements of Income Data | Condensed Consolidating Statement of Income Three months ended September 30, 2023 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiary Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 570,323 116,192 108,472 — — $ 794,987 Expenses Fuel oil 196,223 30,956 40,259 — — 267,438 Purchased power 132,536 30,265 14,994 — — 177,795 Other operation and maintenance 83,528 21,351 37,629 — — 142,508 Depreciation 41,276 10,635 9,254 — — 61,165 Taxes, other than income taxes 53,511 10,857 10,355 — — 74,723 Total expenses 507,074 104,064 112,491 — — 723,629 Operating income (loss) 63,249 12,128 (4,019) — — 71,358 Allowance for equity funds used during construction 3,005 366 629 — — 4,000 Equity in earnings of subsidiaries 3,005 — — — (3,005) — Retirement defined benefits credit (expense)—other than service costs 992 163 (23) — — 1,132 Interest expense and other charges, net (16,295) (2,988) (3,164) — — (22,447) Allowance for borrowed funds used during construction 1,047 117 208 — — 1,372 Income (loss) before income taxes 55,003 9,786 (6,369) — (3,005) 55,415 Income taxes 11,272 2,234 (2,050) — — 11,456 Net income (loss) 43,731 7,552 (4,319) — (3,005) 43,959 Preferred stock dividends of subsidiaries — 133 95 — — 228 Net income (loss) attributable to Hawaiian Electric 43,731 7,419 (4,414) — (3,005) 43,731 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income (loss) for common stock $ 43,461 7,419 (4,414) — (3,005) $ 43,461 Condensed Consolidating Statement of Income Three months ended September 30, 2022 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiary Consolidating adjustments Hawaiian Electric Consolidated Revenues $ 693,281 130,858 131,910 — (78) $ 955,971 Expenses Fuel oil 280,447 40,540 62,615 — — 383,602 Purchased power 171,470 37,263 16,476 — — 225,209 Other operation and maintenance 77,115 21,882 22,113 — — 121,110 Depreciation 39,474 10,350 8,887 — — 58,711 Taxes, other than income taxes 64,051 12,026 12,213 — — 88,290 Total expenses 632,557 122,061 122,304 — — 876,922 Operating income 60,724 8,797 9,606 — (78) 79,049 Allowance for equity funds used during construction 2,063 206 283 — — 2,552 Equity in earnings of subsidiaries 10,577 — — — (10,577) — Retirement defined benefits credit (expense)—other than service costs 760 166 (31) — — 895 Interest expense and other charges, net (14,221) (2,716) (2,750) — 78 (19,609) Allowance for borrowed funds used during construction 674 63 88 — — 825 Income before income taxes 60,577 6,516 7,196 — (10,577) 63,712 Income taxes 10,543 1,424 1,483 — — 13,450 Net income 50,034 5,092 5,713 — (10,577) 50,262 Preferred stock dividends of subsidiaries — 133 95 — — 228 Net income attributable to Hawaiian Electric 50,034 4,959 5,618 — (10,577) 50,034 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 49,764 4,959 5,618 — (10,577) $ 49,764 Condensed Consolidating Statement of Income Nine months ended September 30, 2023 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiary Consolidating adjustments Hawaiian Electric Revenues $ 1,742,542 343,554 333,573 — (130) $ 2,419,539 Expenses Fuel oil 663,521 79,187 138,984 — — 881,692 Purchased power 362,275 101,597 35,118 — — 498,990 Other operation and maintenance 255,728 64,367 87,089 — — 407,184 Depreciation 123,114 31,906 27,761 — — 182,781 Taxes, other than income taxes 164,510 31,983 31,541 — — 228,034 Total expenses 1,569,148 309,040 320,493 — — 2,198,681 Operating income 173,394 34,514 13,080 — (130) 220,858 Allowance for equity funds used during construction 8,604 1,004 1,465 — — 11,073 Equity in earnings of subsidiaries 25,960 — — — (25,960) — Retirement defined benefits credit (expense)—other than service costs 2,801 500 (74) — — 3,227 Interest expense and other charges, net (45,594) (8,794) (9,307) — 130 (63,565) Allowance for borrowed funds used during construction 2,995 321 482 — — 3,798 Income before income taxes 168,160 27,545 5,646 — (25,960) 175,391 Income taxes 31,581 6,261 284 — — 38,126 Net income 136,579 21,284 5,362 — (25,960) 137,265 Preferred stock dividends of subsidiaries — 400 286 — — 686 Net income attributable to Hawaiian Electric 136,579 20,884 5,076 — (25,960) 136,579 Preferred stock dividends of Hawaiian Electric 810 — — — — 810 Net income for common stock $ 135,769 20,884 5,076 — (25,960) $ 135,769 Condensed Consolidating Statement of Income Nine months ended September 30, 2022 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiary Consolidating adjustments Hawaiian Electric Revenues $ 1,769,995 363,888 349,866 — (113) $ 2,483,636 Expenses Fuel oil 619,169 98,856 156,518 — — 874,543 Purchased power 460,855 106,710 39,262 — — 606,827 Other operation and maintenance 243,478 63,427 64,354 — — 371,259 Depreciation 118,459 31,053 26,409 — — 175,921 Taxes, other than income taxes 165,350 33,436 32,502 — — 231,288 Total expenses 1,607,311 333,482 319,045 — — 2,259,838 Operating income 162,684 30,406 30,821 — (113) 223,798 Allowance for equity funds used during construction 5,999 616 816 — — 7,431 Equity in earnings of subsidiaries 36,475 — — — (36,475) — Retirement defined benefits credit (expense)—other than service costs 2,471 500 (95) — — 2,876 Interest expense and other charges, net (40,833) (7,967) (8,048) — 113 (56,735) Allowance for borrowed funds used during construction 1,962 190 249 — — 2,401 Income before income taxes 168,758 23,745 23,743 — (36,475) 179,771 Income taxes 27,640 5,351 4,976 — — 37,967 Net income 141,118 18,394 18,767 — (36,475) 141,804 Preferred stock dividends of subsidiaries — 400 286 — — 686 Net income attributable to Hawaiian Electric 141,118 17,994 18,481 — (36,475) 141,118 Preferred stock dividends of Hawaiian Electric 810 — — — — 810 Net income for common stock $ 140,308 17,994 18,481 — (36,475) $ 140,308 Statements of Income and Comprehensive Income Data Three months ended September 30 Nine months ended September 30 (in thousands) 2023 2022 2023 2022 Interest and dividend income Interest and fees on loans $ 71,540 $ 53,365 $ 204,348 $ 147,499 Interest and dividends on investment securities 14,096 15,052 42,508 43,729 Total interest and dividend income 85,636 68,417 246,856 191,228 Interest expense Interest on deposit liabilities 14,446 1,704 30,944 3,572 Interest on other borrowings 8,598 1,055 25,171 1,199 Total interest expense 23,044 2,759 56,115 4,771 Net interest income 62,592 65,658 190,741 186,457 Provision for credit losses 8,835 (186) 10,053 (692) Net interest income after provision for credit losses 53,757 65,844 180,688 187,149 Noninterest income Fees from other financial services 4,703 4,763 14,391 15,066 Fee income on deposit liabilities 4,924 4,879 14,027 14,122 Fee income on other financial products 2,440 2,416 7,952 7,663 Bank-owned life insurance 2,303 122 5,683 661 Mortgage banking income 341 181 701 1,630 Gain on sale of real estate — — 495 1,002 Other income, net 627 633 2,106 1,480 Total noninterest income 15,338 12,994 45,355 41,624 Noninterest expense Compensation and employee benefits 29,902 28,597 89,500 83,478 Occupancy 5,154 5,577 16,281 16,996 Data processing 5,133 4,509 15,240 13,144 Services 3,627 2,751 8,911 7,712 Equipment 3,125 2,432 8,728 7,163 Office supplies, printing and postage 1,022 1,123 3,296 3,256 Marketing 984 925 2,834 2,877 Other expense 7,399 5,643 19,742 14,542 Total noninterest expense 56,346 51,557 164,532 149,168 Income before income taxes 12,749 27,281 61,511 79,605 Income taxes 1,384 6,525 11,380 17,513 Net income 11,365 20,756 50,131 62,092 Other comprehensive income (loss), net of taxes (34,231) (98,942) (23,011) (310,218) Comprehensive income (loss) $ (22,866) $ (78,186) $ 27,120 $ (248,126) Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended September 30 Nine months ended September 30 (in thousands) 2023 2022 2023 2022 Interest and dividend income $ 85,636 $ 68,417 $ 246,856 $ 191,228 Noninterest income 15,338 12,994 45,355 41,624 Less: Gain on sale of real estate — — 495 1,002 *Revenues-Bank 100,974 81,411 291,716 231,850 Total interest expense 23,044 2,759 56,115 4,771 Provision for credit losses 8,835 (186) 10,053 (692) Noninterest expense 56,346 51,557 164,532 149,168 Less: Gain on sale of real estate — — 495 1,002 Less: Retirement defined benefits credit—other than service costs (190) (181) (564) (552) *Expenses-Bank 88,415 54,311 230,769 152,797 *Operating income-Bank 12,559 27,100 60,947 79,053 Add back: Retirement defined benefits credit—other than service costs (190) (181) (564) (552) Income before income taxes $ 12,749 $ 27,281 $ 61,511 $ 79,605 |
Schedule of Statements of Comprehensive Income Data | Statements of Income and Comprehensive Income Data Three months ended September 30 Nine months ended September 30 (in thousands) 2023 2022 2023 2022 Interest and dividend income Interest and fees on loans $ 71,540 $ 53,365 $ 204,348 $ 147,499 Interest and dividends on investment securities 14,096 15,052 42,508 43,729 Total interest and dividend income 85,636 68,417 246,856 191,228 Interest expense Interest on deposit liabilities 14,446 1,704 30,944 3,572 Interest on other borrowings 8,598 1,055 25,171 1,199 Total interest expense 23,044 2,759 56,115 4,771 Net interest income 62,592 65,658 190,741 186,457 Provision for credit losses 8,835 (186) 10,053 (692) Net interest income after provision for credit losses 53,757 65,844 180,688 187,149 Noninterest income Fees from other financial services 4,703 4,763 14,391 15,066 Fee income on deposit liabilities 4,924 4,879 14,027 14,122 Fee income on other financial products 2,440 2,416 7,952 7,663 Bank-owned life insurance 2,303 122 5,683 661 Mortgage banking income 341 181 701 1,630 Gain on sale of real estate — — 495 1,002 Other income, net 627 633 2,106 1,480 Total noninterest income 15,338 12,994 45,355 41,624 Noninterest expense Compensation and employee benefits 29,902 28,597 89,500 83,478 Occupancy 5,154 5,577 16,281 16,996 Data processing 5,133 4,509 15,240 13,144 Services 3,627 2,751 8,911 7,712 Equipment 3,125 2,432 8,728 7,163 Office supplies, printing and postage 1,022 1,123 3,296 3,256 Marketing 984 925 2,834 2,877 Other expense 7,399 5,643 19,742 14,542 Total noninterest expense 56,346 51,557 164,532 149,168 Income before income taxes 12,749 27,281 61,511 79,605 Income taxes 1,384 6,525 11,380 17,513 Net income 11,365 20,756 50,131 62,092 Other comprehensive income (loss), net of taxes (34,231) (98,942) (23,011) (310,218) Comprehensive income (loss) $ (22,866) $ (78,186) $ 27,120 $ (248,126) Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended September 30 Nine months ended September 30 (in thousands) 2023 2022 2023 2022 Interest and dividend income $ 85,636 $ 68,417 $ 246,856 $ 191,228 Noninterest income 15,338 12,994 45,355 41,624 Less: Gain on sale of real estate — — 495 1,002 *Revenues-Bank 100,974 81,411 291,716 231,850 Total interest expense 23,044 2,759 56,115 4,771 Provision for credit losses 8,835 (186) 10,053 (692) Noninterest expense 56,346 51,557 164,532 149,168 Less: Gain on sale of real estate — — 495 1,002 Less: Retirement defined benefits credit—other than service costs (190) (181) (564) (552) *Expenses-Bank 88,415 54,311 230,769 152,797 *Operating income-Bank 12,559 27,100 60,947 79,053 Add back: Retirement defined benefits credit—other than service costs (190) (181) (564) (552) Income before income taxes $ 12,749 $ 27,281 $ 61,511 $ 79,605 |
Schedule of Balance Sheets Data | Condensed Consolidating Balance Sheet September 30, 2023 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consoli- Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 42,859 5,645 3,594 — — $ 52,098 Plant and equipment 5,422,393 1,448,183 1,329,252 — — 8,199,828 Right-of-use assets - finance lease 88,297 36,075 — — — 124,372 Less accumulated depreciation (1,953,609) (663,303) (605,118) — — (3,222,030) Construction in progress 258,204 35,281 63,804 — — 357,289 Utility property, plant and equipment, net 3,858,144 861,881 791,532 — — 5,511,557 Nonutility property, plant and equipment, less accumulated depreciation 5,295 115 1,532 — — 6,942 Total property, plant and equipment, net 3,863,439 861,996 793,064 — — 5,518,499 Investment in wholly owned subsidiaries, at equity 703,311 — — — (703,311) — Current assets Cash and cash equivalents 233,518 32,716 8,543 77 — 274,854 Restricted cash 2,000 — — — — 2,000 Customer accounts receivable, net 172,730 34,550 34,482 — — 241,762 Accrued unbilled revenues, net 132,552 22,062 24,713 — — 179,327 Other accounts receivable, net 115,498 7,124 11,778 — (44,577) 89,823 Fuel oil stock, at average cost 112,468 14,400 25,900 — — 152,768 Materials and supplies, at average cost 58,834 13,077 27,615 — — 99,526 Prepayments and other 41,304 5,468 7,766 — — 54,538 Regulatory assets 49,489 5,110 3,322 — — 57,921 Total current assets 918,393 134,507 144,119 77 (44,577) 1,152,519 Other long-term assets Operating lease right-of-use assets 36,627 29,193 10,241 — — 76,061 Regulatory assets 146,735 14,583 11,958 — — 173,276 Other 112,601 33,011 29,468 — (16,988) 158,092 Total other long-term assets 295,963 76,787 51,667 — (16,988) 407,429 Total assets $ 5,781,106 1,073,290 988,850 77 (764,876) $ 7,078,447 Capitalization and liabilities Capitalization Common stock equity $ 2,383,023 352,170 351,064 77 (703,311) $ 2,383,023 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,426,353 249,308 258,383 — — 1,934,044 Total capitalization 3,831,669 608,478 614,447 77 (703,311) 4,351,360 Current liabilities Current portion of operating lease liabilities 7,308 6,942 2,762 — — 17,012 Current portion of long-term debt 49,998 19,999 29,999 — — 99,996 Accounts payable 141,738 25,436 34,525 — — 201,699 Interest and preferred dividends payable 21,304 3,924 4,830 — — 30,058 Taxes accrued, including revenue taxes 196,037 40,706 37,529 — — 274,272 Regulatory liabilities 9,999 6,842 9,484 — — 26,325 Other 148,400 23,182 36,302 — (44,577) 163,307 Total current liabilities 574,784 127,031 155,431 — (44,577) 812,669 Deferred credits and other liabilities Operating lease liabilities 35,967 22,575 7,757 — — 66,299 Finance lease liabilities 82,935 35,205 — — — 118,140 Deferred income taxes 274,577 50,405 60,693 — — 385,675 Regulatory liabilities 770,268 197,045 108,136 — — 1,075,449 Unamortized tax credits 65,153 12,410 12,184 — — 89,747 Defined benefit pension liability 65,872 — — — (16,988) 48,884 Other 79,881 20,141 30,202 — — 130,224 Total deferred credits and other liabilities 1,374,653 337,781 218,972 — (16,988) 1,914,418 Total capitalization and liabilities $ 5,781,106 1,073,290 988,850 77 (764,876) $ 7,078,447 Condensed Consolidating Balance Sheet December 31, 2022 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consoli- Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 42,860 5,606 3,594 — — $ 52,060 Plant and equipment 5,260,685 1,425,442 1,293,383 — — 7,979,510 Finance lease right-of-use assets 48,371 — — — — 48,371 Less accumulated depreciation (1,855,150) (644,457) (586,892) — — (3,086,499) Construction in progress 215,560 23,989 35,804 — — 275,353 Utility property, plant and equipment, net 3,712,326 810,580 745,889 — — 5,268,795 Nonutility property, plant and equipment, less accumulated depreciation 5,298 115 1,532 — — 6,945 Total property, plant and equipment, net 3,717,624 810,695 747,421 — — 5,275,740 Investment in wholly owned subsidiaries, at equity 701,833 — — — (701,833) — Current assets Cash and cash equivalents 27,579 5,092 6,494 77 — 39,242 Advances to affiliates — 4,500 21,700 — (26,200) — Customer accounts receivable, net 216,802 39,339 32,197 — — 288,338 Accrued unbilled revenues, net 136,508 23,839 22,933 — — 183,280 Other accounts receivable, net 23,746 5,519 6,686 — (22,384) 13,567 Fuel oil stock, at average cost 153,342 16,964 21,224 — — 191,530 Materials and supplies, at average cost 48,130 9,783 21,655 — — 79,568 Prepayments and other 24,040 6,346 4,137 — (1,041) 33,482 Regulatory assets 46,504 2,435 3,334 — — 52,273 Total current assets 676,651 113,817 140,360 77 (49,625) 881,280 Other long-term assets Operating lease right-of-use assets 42,752 34,283 12,283 — — 89,318 Regulatory assets 154,040 21,816 14,384 — — 190,240 Other 115,028 32,654 29,495 — (16,288) 160,889 Total other long-term assets 311,820 88,753 56,162 — (16,288) 440,447 Total assets $ 5,407,928 1,013,265 943,943 77 (767,746) $ 6,597,467 Capitalization and liabilities Capitalization Common stock equity $ 2,344,170 344,720 357,036 77 (701,833) $ 2,344,170 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,126,915 224,439 233,500 — — 1,584,854 Total capitalization 3,493,378 576,159 595,536 77 (701,833) 3,963,317 Current liabilities Current portion of operating lease liabilities 9,775 6,690 2,630 — — 19,095 Current portion of long-term debt 49,981 19,992 29,989 — — 99,962 Short-term borrowings-non-affiliate 87,967 — — — — 87,967 Short-term borrowings-affiliate 26,200 — — — (26,200) — Accounts payable 143,253 32,113 27,126 — — 202,492 Interest and preferred dividends payable 12,398 2,576 2,282 — (80) 17,176 Taxes accrued, including revenue taxes 207,798 42,436 40,709 — (1,041) 289,902 Regulatory liabilities 13,145 8,553 9,777 — — 31,475 Other 64,659 20,856 22,385 — (22,304) 85,596 Total current liabilities 615,176 133,216 134,898 — (49,625) 833,665 Deferred credits and other liabilities Operating lease liabilities 41,049 27,817 9,849 — — 78,715 Finance lease liabilities 46,048 — — — — 46,048 Deferred income taxes 271,234 50,615 62,581 — — 384,430 Regulatory liabilities 729,683 194,222 100,270 — — 1,024,175 Unamortized tax credits 69,614 13,150 12,536 — — 95,300 Defined benefit pension and other postretirement benefit plans liability 65,907 129 — — (16,288) 49,748 Other 75,839 17,957 28,273 — — 122,069 Total deferred credits and other liabilities 1,299,374 303,890 213,509 — (16,288) 1,800,485 Total capitalization and liabilities $ 5,407,928 1,013,265 943,943 77 (767,746) $ 6,597,467 Balance Sheets Data (in thousands) September 30, 2023 December 31, 2022 Assets Cash and due from banks $ 139,059 $ 153,042 Interest-bearing deposits 124,531 3,107 Cash and cash equivalents 263,590 156,149 Investment securities Available-for-sale, at fair value 1,266,412 1,429,667 Held-to-maturity, at amortized cost (fair value of $1,052,221 and $1,150,971, respectively) 1,212,005 1,251,747 Stock in Federal Home Loan Bank, at cost 18,000 26,560 Loans held for investment 6,191,006 5,978,906 Allowance for credit losses (76,366) (72,216) Net loans 6,114,640 5,906,690 Loans held for sale, at lower of cost or fair value 2,171 824 Other 698,420 692,143 Goodwill 82,190 82,190 Total assets $ 9,657,428 $ 9,545,970 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 2,573,010 $ 2,811,077 Deposit liabilities—interest-bearing 5,651,341 5,358,619 Other borrowings 750,000 695,120 Other 224,136 212,269 Total liabilities 9,198,487 9,077,085 Common stock 1 1 Additional paid-in capital 357,742 355,806 Retained earnings 460,824 449,693 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (350,234) $ (328,904) Retirement benefit plans (9,392) (359,626) (7,711) (336,615) Total shareholder’s equity 458,941 468,885 Total liabilities and shareholder’s equity $ 9,657,428 $ 9,545,970 Other assets Bank-owned life insurance $ 186,143 $ 182,986 Premises and equipment, net 189,950 195,324 Accrued interest receivable 29,361 25,077 Mortgage-servicing rights 8,376 9,047 Low-income housing investments 103,580 106,978 Deferred tax asset 127,735 116,441 Real estate acquired in settlement of loans, net — 115 Other 53,275 56,175 $ 698,420 $ 692,143 Other liabilities Accrued expenses $ 102,540 $ 97,295 Federal and state income taxes payable 845 863 Cashier’s checks 38,483 36,401 Advance payments by borrowers 4,289 9,637 Other 77,979 68,073 $ 224,136 $ 212,269 |
Schedule of the Book Value and Aggregate Fair Value by Major Security Type | The major components of investment securities were as follows: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair Gross unrealized losses Less than 12 months 12 months or longer (dollars in thousands) Number of issues Fair Amount Number of issues Fair Amount September 30, 2023 Available-for-sale U.S. Treasury and federal agency obligations $ 82,252 $ — $ (7,252) $ 75,000 — $ — $ — 14 $ 75,000 $ (7,252) Mortgage-backed securities* 1,427,186 — (282,019) 1,145,167 5 12,650 (3,432) 178 1,132,517 (278,587) Corporate bonds 35,273 — (3,522) 31,751 — — — 3 31,751 (3,522) Mortgage revenue bonds 14,494 — — 14,494 — — — — — — $ 1,559,205 $ — $ (292,793) $ 1,266,412 5 $ 12,650 $ (3,432) 195 $ 1,239,268 $ (289,361) Held-to-maturity U.S. Treasury and federal agency obligations $ 59,912 $ — $ (9,541) $ 50,371 — $ — $ — 3 $ 50,371 $ (9,541) Mortgage-backed securities* 1,152,093 — (150,243) 1,001,850 62 612,587 (42,892) 41 389,263 (107,351) $ 1,212,005 $ — $ (159,784) $ 1,052,221 62 $ 612,587 $ (42,892) 44 $ 439,634 $ (116,892) December 31, 2022 Available-for-sale U.S. Treasury and federal agency obligations $ 88,344 $ — $ (7,281) $ 81,063 12 $ 41,201 $ (2,120) 4 $ 39,862 $ (5,161) Mortgage-backed securities* 1,530,582 — (237,614) 1,292,968 113 455,836 (56,999) 70 837,132 (180,615) Corporate bonds 44,377 — (3,643) 40,734 4 29,644 (2,028) 1 11,090 (1,615) Mortgage revenue bonds 14,902 — — 14,902 — — — — — — $ 1,678,205 $ — $ (248,538) $ 1,429,667 129 $ 526,681 $ (61,147) 75 $ 888,084 $ (187,391) Held-to-maturity U.S. Treasury and federal agency obligations $ 59,894 $ — $ (8,478) $ 51,416 1 $ 16,874 $ (3,222) 2 $ 34,542 $ (5,256) Mortgage-backed securities* 1,191,853 2,670 (94,968) 1,099,555 22 183,629 (10,593) 51 567,250 (84,375) $ 1,251,747 $ 2,670 $ (103,446) $ 1,150,971 23 $ 200,503 $ (13,815) 53 $ 601,792 $ (89,631) * Issued or guaranteed by U.S. Government agencies or sponsored agencies |
Schedule of Contractual Maturities of Available-for-Sale Securities | The contractual maturities of investment securities were as follows: September 30, 2023 Amortized Fair value (in thousands) Available-for-sale Due in one year or less $ 1,811 $ 1,782 Due after one year through five years 115,714 104,970 Due after five years through ten years 14,494 14,494 Due after ten years — — 132,019 121,246 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,427,186 1,145,166 Total available-for-sale securities $ 1,559,205 $ 1,266,412 Held-to-maturity Due in one year or less $ — $ — Due after one year through five years 39,824 34,133 Due after five years through ten years 20,088 16,238 Due after ten years — — 59,912 50,371 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,152,093 1,001,850 Total held-to-maturity securities $ 1,212,005 $ 1,052,221 |
Schedule of Components of Loans Receivable | The components of loans were summarized as follows: September 30, 2023 December 31, 2022 (in thousands) Real estate: Residential 1-4 family $ 2,566,300 $ 2,479,637 Commercial real estate 1,400,570 1,358,123 Home equity line of credit 1,032,749 1,002,905 Residential land 20,245 20,679 Commercial construction 168,539 88,489 Residential construction 17,295 20,788 Total real estate 5,205,698 4,970,621 Commercial 732,458 779,691 Consumer 282,946 254,709 Total loans 6,221,102 6,005,021 Less: Deferred fees and discounts (30,096) (26,115) Allowance for credit losses (76,366) (72,216) Total loans, net $ 6,114,640 $ 5,906,690 |
Schedule of Allowance for Credit Losses | The allowance for credit losses (balances and changes) by portfolio segment were as follows: (in thousands) Residential Commercial real Home Residential land Commercial construction Residential construction Commercial loans Consumer loans Total Three months ended September 30, 2023 Allowance for credit losses: Beginning balance $ 4,708 $ 20,278 $ 7,139 $ 653 $ 2,549 $ 26 $ 11,358 $ 22,357 $ 69,068 Charge-offs — — — — — — (125) (2,667) (2,792) Recoveries 57 — 131 1 — — 725 841 1,755 Provision 1,702 2,180 505 (33) 1,075 16 (1,175) 4,065 8,335 Ending balance $ 6,467 $ 22,458 $ 7,775 $ 621 $ 3,624 $ 42 $ 10,783 $ 24,596 $ 76,366 Three months ended September 30, 2022 Allowance for credit losses: Beginning balance $ 8,520 $ 20,900 $ 6,096 $ 677 $ 2,634 $ 46 $ 12,413 $ 18,170 $ 69,456 Charge-offs — — — — — — (143) (1,503) (1,646) Recoveries 2 — 14 — — — 303 963 1,282 Provision (938) 136 (167) 12 (1,635) 3 378 3,525 1,314 Ending balance $ 7,584 $ 21,036 $ 5,943 $ 689 $ 999 $ 49 $ 12,951 $ 21,155 $ 70,406 Nine months ended September 30, 2023 Allowance for credit losses: Beginning balance $ 6,270 $ 21,898 $ 6,125 $ 717 $ 1,195 $ 46 $ 12,426 $ 23,539 $ 72,216 Charge-offs (990) — (360) — — — (509) (7,558) (9,417) Recoveries 63 — 165 4 — — 1,329 2,653 4,214 Provision 1,124 560 1,845 (100) 2,429 (4) (2,463) 5,962 9,353 Ending balance $ 6,467 $ 22,458 $ 7,775 $ 621 $ 3,624 $ 42 $ 10,783 $ 24,596 $ 76,366 Nine months ended September 30, 2022 Allowance for credit losses: Beginning balance $ 6,545 $ 24,696 $ 5,657 $ 646 $ 2,186 $ 18 $ 15,798 $ 15,584 $ 71,130 Charge-offs — — — — — — (367) (4,354) (4,721) Recoveries 13 — 56 101 — — 1,055 2,964 4,189 Provision 1,026 (3,660) 230 (58) (1,187) 31 (3,535) 6,961 (192) Ending balance $ 7,584 $ 21,036 $ 5,943 $ 689 $ 999 $ 49 $ 12,951 $ 21,155 $ 70,406 |
Schedule of Allowance for Loan Commitments | The allowance for loan commitments by portfolio segment were as follows: (in thousands) Home equity Commercial construction Commercial loans Total Three months ended September 30, 2023 Allowance for loan commitments: Beginning balance $ 600 $ 3,800 $ 200 $ 4,600 Provision — 500 — 500 Ending balance $ 600 $ 4,300 $ 200 $ 5,100 Three months ended September 30, 2022 Allowance for loan commitments: Beginning balance $ 400 $ 4,100 $ 1,400 $ 5,900 Provision — (1,500) — (1,500) Ending balance $ 400 $ 2,600 $ 1,400 $ 4,400 Nine months ended September 30, 2023 Allowance for loan commitments: Beginning balance $ 400 $ 2,600 $ 1,400 $ 4,400 Provision 200 1,700 (1,200) 700 Ending balance $ 600 $ 4,300 $ 200 $ 5,100 Nine months ended September 30, 2022 Allowance for loan commitments: Beginning balance $ 400 $ 3,700 $ 800 $ 4,900 Provision — (1,100) 600 (500) Ending balance $ 400 $ 2,600 $ 1,400 $ 4,400 |
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) 2023 2022 2021 2020 2019 Prior Revolving Converted to term loans Total September 30, 2023 Residential 1-4 family Current $ 199,880 $ 414,053 $ 741,401 $ 405,552 $ 107,566 $ 692,167 $ — $ — $ 2,560,619 30-59 days past due — — — 267 — 2,654 — — 2,921 60-89 days past due — — — — — 973 — — 973 Greater than 89 days past due — — — — — 1,787 — — 1,787 199,880 414,053 741,401 405,819 107,566 697,581 — — 2,566,300 Current YTD period Gross charge-offs — — — — — 990 — — 990 Home equity line of credit Current — — — — — — 976,029 54,579 1,030,608 30-59 days past due — — — — — — 463 246 709 60-89 days past due — — — — — — 350 321 671 Greater than 89 days past due — — — — — — 495 266 761 — — — — — — 977,337 55,412 1,032,749 Current YTD period Gross charge-offs — — — — — — 77 283 360 Residential land Current 3,077 5,118 7,549 3,518 — 983 — — 20,245 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 3,077 5,118 7,549 3,518 — 983 — — 20,245 Current YTD period Gross charge-offs — — — — — — — — — Residential construction Current 2,780 11,019 3,496 — — — — — 17,295 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 2,780 11,019 3,496 — — — — — 17,295 Current YTD period Gross charge-offs — — — — — — — — — Consumer Current 82,282 164,693 12,203 2,394 1,010 222 10,345 3,413 276,562 30-59 days past due 822 1,882 122 43 49 1 46 156 3,121 60-89 days past due 362 933 108 35 52 — 32 81 1,603 Greater than 89 days past due 375 785 102 33 26 2 151 186 1,660 83,841 168,293 12,535 2,505 1,137 225 10,574 3,836 282,946 Current YTD period Gross charge-offs 850 4,637 840 163 363 39 279 387 7,558 Commercial real estate Pass 81,287 390,352 177,125 265,808 66,112 329,235 15,482 — 1,325,401 Special Mention — — 11,214 3,381 14,452 22,367 — — 51,414 Substandard 5,386 — 1,549 — 11,048 5,772 — — 23,755 Doubtful — — — — — — — — — 86,673 390,352 189,888 269,189 91,612 357,374 15,482 — 1,400,570 Term Loans by Origination Year Revolving Loans (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Converted to term loans Total Current YTD period Gross charge-offs — — — — — — — — — Commercial construction Pass 10,643 21,440 66,143 356 — — 69,957 — 168,539 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 10,643 21,440 66,143 356 — — 69,957 — 168,539 Current YTD period Gross charge-offs — — — — — — — — — Commercial Pass 82,145 209,364 124,453 75,753 46,291 81,409 81,627 9,560 710,602 Special Mention 1,945 — 970 — 272 — 7,151 — 10,338 Substandard — 3,054 2,040 230 763 3,409 1,506 516 11,518 Doubtful — — — — — — — — — 84,090 212,418 127,463 75,983 47,326 84,818 90,284 10,076 732,458 Current YTD period Gross charge-offs — — 51 — — — 177 281 509 Total loans $ 470,984 $ 1,222,693 $ 1,148,475 $ 757,370 $ 247,641 $ 1,140,981 $ 1,163,634 $ 69,324 $ 6,221,102 Term Loans by Origination Year Revolving Loans (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Converted to term loans Total December 31, 2022 Residential 1-4 family Current $ 432,707 $ 755,056 $ 423,455 $ 113,096 $ 51,860 $ 698,354 $ — $ — $ 2,474,528 30-59 days past due — — — — 448 1,098 — — 1,546 60-89 days past due — — 268 — — 90 — — 358 Greater than 89 days past due — — — — 809 2,396 — — 3,205 432,707 755,056 423,723 113,096 53,117 701,938 — — 2,479,637 Home equity line of credit Current — — — — — — 959,131 40,814 999,945 30-59 days past due — — — — — — 1,103 209 1,312 60-89 days past due — — — — — — 209 226 435 Greater than 89 days past due — — — — — — 587 626 1,213 — — — — — — 961,030 41,875 1,002,905 Residential land Current 5,245 9,010 5,222 203 522 477 — — 20,679 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 5,245 9,010 5,222 203 522 477 — — 20,679 Residential construction Current 7,986 11,624 1,178 — — — — — 20,788 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 7,986 11,624 1,178 — — — — — 20,788 Consumer Current 199,574 21,330 5,543 7,580 527 140 10,810 4,782 250,286 30-59 days past due 1,110 287 65 239 30 — 81 167 1,979 60-89 days past due 756 163 88 137 19 — 45 107 1,315 Greater than 89 days past due 621 105 37 176 28 — 20 142 1,129 202,061 21,885 5,733 8,132 604 140 10,956 5,198 254,709 Commercial real estate Pass 390,206 177,130 283,321 51,542 63,084 278,280 8,235 — 1,251,798 Special Mention — 11,250 3,446 40,423 — 24,466 — — 79,585 Substandard — — 665 11,357 — 14,718 — — 26,740 Doubtful — — — — — — — — — 390,206 188,380 287,432 103,322 63,084 317,464 8,235 — 1,358,123 Commercial construction Pass 15,094 47,478 44 — — — 25,873 — 88,489 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 15,094 47,478 44 — — — 25,873 — 88,489 Commercial Pass 239,852 185,013 85,220 68,161 46,142 53,192 60,871 13,964 752,415 Special Mention — — — 2,374 — 645 9,005 8 12,032 Substandard 3,322 2,305 401 1,304 1,346 3,849 1,664 1,053 15,244 Doubtful — — — — — — — — — 243,174 187,318 85,621 71,839 47,488 57,686 71,540 15,025 779,691 Total loans $ 1,296,473 $ 1,220,751 $ 808,953 $ 296,592 $ 164,815 $ 1,077,705 $ 1,077,634 $ 62,098 $ 6,005,021 |
Schedule of Credit Risk Profile Based on Payment Activity for Loans | The credit risk profile based on payment activity for loans was as follows: (in thousands) 30-59 60-89 Total Current Total Amortized cost> September 30, 2023 Real estate: Residential 1-4 family $ 2,921 $ 973 $ 1,787 $ 5,681 $ 2,560,619 $ 2,566,300 $ — Commercial real estate — — — — 1,400,570 1,400,570 — Home equity line of credit 709 671 761 2,141 1,030,608 1,032,749 — Residential land — — — — 20,245 20,245 — Commercial construction — — — — 168,539 168,539 — Residential construction — — — — 17,295 17,295 — Commercial 575 100 77 752 731,706 732,458 — Consumer 3,121 1,603 1,660 6,384 276,562 282,946 — Total loans $ 7,326 $ 3,347 $ 4,285 $ 14,958 $ 6,206,144 $ 6,221,102 $ — December 31, 2022 Real estate: Residential 1-4 family $ 1,546 $ 358 $ 3,205 $ 5,109 $ 2,474,528 $ 2,479,637 $ — Commercial real estate 508 217 — 725 1,357,398 1,358,123 — Home equity line of credit 1,312 435 1,213 2,960 999,945 1,002,905 — Residential land — — — — 20,679 20,679 — Commercial construction — — — — 88,489 88,489 — Residential construction — — — — 20,788 20,788 — Commercial 614 18 77 709 778,982 779,691 — Consumer 1,979 1,315 1,129 4,423 250,286 254,709 — Total loans $ 5,959 $ 2,343 $ 5,624 $ 13,926 $ 5,991,095 $ 6,005,021 $ — |
Schedule of Credit Risk Profile Based on Nonaccrual Loans, Accruing Loans 90 days or More Past Due | The credit risk profile based on nonaccrual loans were as follows: (in thousands) September 30, 2023 December 31, 2022 With a Related ACL Without a Related ACL Total With a Related ACL Without a Related ACL Total Real estate: Residential 1-4 family $ 573 $ 2,500 $ 3,073 $ 4,198 $ 2,981 $ 7,179 Commercial real estate — — — — — — Home equity line of credit 2,764 1,017 3,781 3,654 1,442 5,096 Residential land 106 — 106 420 — 420 Commercial construction — — — — — — Residential construction — — — — — — Commercial 508 — 508 2,183 — 2,183 Consumer 2,414 — 2,414 1,588 — 1,588 Total $ 6,365 $ 3,517 $ 9,882 $ 12,043 $ 4,423 $ 16,466 |
Schedule of Loan Modifications | The credit risk profile based on loans whose terms have been modified and accruing interest were as follows: (in thousands) December 31, 2022 Real estate: Residential 1-4 family $ 8,821 Commercial real estate 9,477 Home equity line of credit 4,404 Residential land 782 Commercial construction — Residential construction — Commercial 6,596 Consumer 50 Total troubled debt restructured loans accruing interest $ 30,130 Three months ended September 30, 2022 Nine months ended September 30, 2022 (dollars in thousands) Number Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Number Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Troubled debt restructurings Real estate: Residential 1-4 family 2 $ 512 $ — 3 $ 893 $ 135 Commercial real estate — — — — — — Home equity line of credit — — — — — — Residential land 1 204 16 1 204 16 Commercial construction — — — — — — Residential construction — — — — — — Commercial — — — 1 288 20 Consumer — — — — — — 3 $ 716 $ 16 5 $ 1,385 $ 171 1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included. |
Schedule of Collateral-Dependent Loans | Loans considered collateral-dependent were as follows: Amortized cost (in thousands) September 30, 2023 December 31, 2022 Collateral type Real estate: Residential 1-4 family $ 2,584 $ 3,959 Residential real estate property Home equity line of credit 1,017 1,425 Residential real estate property Total $ 3,601 $ 5,384 |
Schedule of Amortized Intangible Assets | Changes in the carrying value of MSRs were as follows: (in thousands) Gross Accumulated amortization Valuation allowance Net September 30, 2023 $ 18,125 $ (9,749) $ — $ 8,376 December 31, 2022 19,544 (10,497) — 9,047 Changes related to MSRs were as follows: Three months ended September 30 Nine months ended September 30 (in thousands) 2023 2022 2023 2022 Mortgage servicing rights Beginning balance $ 8,495 $ 9,696 $ 9,047 $ 9,950 Amount capitalized 184 117 319 1,040 Amortization (303) (462) (990) (1,639) Other-than-temporary impairment — — — — Carrying amount before valuation allowance 8,376 9,351 8,376 9,351 Valuation allowance for mortgage servicing rights Beginning balance — — — — Provision — — — — Other-than-temporary impairment — — — — Ending balance — — — — Net carrying value of mortgage servicing rights $ 8,376 $ 9,351 $ 8,376 $ 9,351 |
Schedule of Key Assumptions Used in Estimating fair Value | Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows: (dollars in thousands) September 30, 2023 December 31, 2022 Unpaid principal balance $ 1,412,412 $ 1,451,322 Weighted average note rate 3.44 % 3.38 % Weighted average discount rate 10.00 % 10.00 % Weighted average prepayment speed 5.58 % 6.56 % |
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets | The sensitivity analysis of fair value of MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows: (dollars in thousands) September 30, 2023 December 31, 2022 Prepayment rate: 25 basis points adverse rate change $ (90) $ (92) 50 basis points adverse rate change (207) (214) Discount rate: 25 basis points adverse rate change (206) (182) 50 basis points adverse rate change (407) (361) |
Schedule of Securities Sold Under Agreements to Repurchase | The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties: (in millions) Gross amount Gross amount Net amount of Repurchase agreements September 30, 2023 $ — $ — $ — December 31, 2022 281 — 281 Gross amount not offset in the Balance Sheets (in millions) Net amount of liabilities presented Financial Cash Commercial account holders September 30, 2023 $ — $ — $ — December 31, 2022 281 327 — |
Schedule of Notional and Fair Value of Derivatives | The notional amount and fair value of ASB’s derivative financial instruments were as follows: September 30, 2023 December 31, 2022 (in thousands) Notional amount Fair value Notional amount Fair value Interest rate lock commitments $ 4,910 $ 54 $ 1,720 $ 9 Forward commitments 3,500 15 1,500 18 |
Schedule of Derivative Financial Instruments | ASB’s derivative financial instruments, their fair values and balance sheet location were as follows: Derivative Financial Instruments Not Designated as Hedging Instruments 1 September 30, 2023 December 31, 2022 (in thousands) Asset derivatives Liability Asset derivatives Liability Interest rate lock commitments $ 54 $ — $ 9 $ — Forward commitments 15 — 18 — $ 69 $ — $ 27 $ — 1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the balance sheets. |
Schedule of Derivative Financial Instruments and Net Gain or Loss | The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in ASB’s statements of income: Derivative Financial Instruments Not Designated as Hedging Instruments Location of net gains (losses) recognized in the Statements of Income Three months ended September 30 Nine months ended September 30 (in thousands) 2023 2022 2023 2022 Interest rate lock commitments Mortgage banking income $ (34) $ (129) $ 45 $ (722) Forward commitments Mortgage banking income (36) 145 (3) 182 $ (70) $ 16 $ 42 $ (540) |
Credit agreement and changes _2
Credit agreement and changes in debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Notes | HEI Series 2023A HEI Series 2023B Aggregate principal amount $39 million $61 million Fixed coupon interest rate 6.04% 6.10% Maturity date 6/15/2028 6/15/2033 Series 2023A Series 2023B Series 2023C Aggregate principal amount $90 million $40 million $20 million Fixed coupon interest rate Hawaiian Electric 6.11% 6.25% 6.70% Hawaii Electric Light 6.25% — — Maui Electric 6.25% — — Maturity date Hawaiian Electric 2/9/2030 2/9/2033 2/9/2053 Hawaii Electric Light 2/9/2033 — — Maui Electric 2/9/2033 — — Principal amount by company Hawaiian Electric $40 million $40 million $20 million Hawaii Electric Light $25 million — — Maui Electric $25 million — — |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Changes in the balances of each component of accumulated other comprehensive income/(loss) (AOCI) were as follows: HEI Consolidated Hawaiian Electric Consolidated (in thousands) Net unrealized gains (losses) on securities Unrealized gains (losses) on derivatives Retirement benefit plans AOCI AOCI-Retirement benefit plans Balance, December 31, 2022 $ (328,904) $ 1,991 $ (9,115) $ (336,028) $ 2,861 Current period other comprehensive income (loss) (21,330) (827) 161 (21,996) (166) Balance, September 30, 2023 $ (350,234) $ 1,164 $ (8,954) $ (358,024) $ 2,695 Balance, December 31, 2021 $ (32,037) $ (3,638) $ (16,858) $ (52,533) $ (3,280) Current period other comprehensive income (loss) (308,229) 6,561 657 (301,011) 210 Balance, September 30, 2022 $ (340,266) $ 2,923 $ (16,201) $ (353,544) $ (3,070) |
Schedule of Reclassification out of AOCI | Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Affected line item in the Three months ended September 30 Nine months ended September 30 (in thousands) 2023 2022 2023 2022 HEI consolidated Net unrealized gains (losses) on available-for sale investment securities - amortization of unrealized holding losses on held-to-maturity securities $ 3,699 $ — $ 11,065 $ — Bank revenues Net realized losses (gains) on derivatives qualifying as cash flow hedges (47) 53 (143) 161 Interest expense Retirement benefit plans: Amortization of prior service credit and net losses (gains) recognized during the period in net periodic benefit cost (446) 5,606 (1,160) 10,229 See Note 9 for additional details Impact of D&Os of the PUC included in regulatory assets 470 (5,303) 1,321 (9,572) See Note 9 for additional details Total reclassifications $ 3,676 $ 356 $ 11,083 $ 818 Hawaiian Electric consolidated Retirement benefit plans: Amortization of prior service credit and net losses (gains) recognized during the period in net periodic benefit cost $ (547) $ 5,411 $ (1,487) $ 9,782 See Note 9 for additional details Impact of D&Os of the PUC included in regulatory assets 470 (5,303) 1,321 (9,572) See Note 9 for additional details Total reclassifications $ (77) $ 108 $ (166) $ 210 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables disaggregate revenues by major source, timing of revenue recognition, and segment: Three months ended September 30, 2023 Nine months ended September 30, 2023 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 257,790 $ — $ — $ 257,790 $ 753,207 $ — $ — $ 753,207 Electric energy sales - commercial 257,876 — — 257,876 762,454 — — 762,454 Electric energy sales - large light and power 284,607 — — 284,607 855,396 — — 855,396 Electric energy sales - other 4,688 — — 4,688 14,628 — — 14,628 Bank fees — 12,067 — 12,067 — 36,370 — 36,370 Other sales — — 5,016 5,016 — — 13,361 13,361 Total revenues from contracts with customers 804,961 12,067 5,016 822,044 2,385,685 36,370 13,361 2,435,416 Revenues from other sources Regulatory revenue (20,927) — — (20,927) 3,716 — — 3,716 Bank interest and dividend income — 85,636 — 85,636 — 246,856 — 246,856 Other bank noninterest income — 3,271 — 3,271 — 8,490 — 8,490 Other 10,953 — 896 11,849 30,138 — 1,179 31,317 Total revenues from other sources (9,974) 88,907 896 79,829 33,854 255,346 1,179 290,379 Total revenues $ 794,987 $ 100,974 $ 5,912 $ 901,873 $ 2,419,539 $ 291,716 $ 14,540 $ 2,725,795 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 12,067 $ — $ 12,067 $ — $ 36,370 $ — $ 36,370 Services/goods transferred over time 804,961 — 5,016 809,977 2,385,685 — 13,361 2,399,046 Total revenues from contracts with customers $ 804,961 $ 12,067 $ 5,016 $ 822,044 $ 2,385,685 $ 36,370 $ 13,361 $ 2,435,416 Three months ended September 30, 2022 Nine months ended September 30, 2022 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 306,417 $ — $ — $ 306,417 $ 790,424 $ — $ — $ 790,424 Electric energy sales - commercial 309,940 — — 309,940 794,238 — — 794,238 Electric energy sales - large light and power 351,763 — — 351,763 886,733 — — 886,733 Electric energy sales - other 5,400 — — 5,400 11,699 — — 11,699 Bank fees — 12,058 — 12,058 — 36,851 — 36,851 Other sales — — 4,760 4,760 — — 7,208 7,208 Total revenues from contracts with customers 973,520 12,058 4,760 990,338 2,483,094 36,851 7,208 2,527,153 Revenues from other sources Regulatory revenue (26,301) — — (26,301) (24,843) — — (24,843) Bank interest and dividend income — 68,417 — 68,417 — 191,228 — 191,228 Other bank noninterest income — 936 — 936 — 3,771 — 3,771 Other 8,752 — 55 8,807 25,385 — 178 25,563 Total revenues from other sources (17,549) 69,353 55 51,859 542 194,999 178 195,719 Total revenues $ 955,971 $ 81,411 $ 4,815 $ 1,042,197 $ 2,483,636 $ 231,850 $ 7,386 $ 2,722,872 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 12,058 $ — $ 12,058 $ — $ 36,851 $ — $ 36,851 Services/goods transferred over time 973,520 — 4,760 978,280 2,483,094 — 7,208 2,490,302 Total revenues from contracts with customers $ 973,520 $ 12,058 $ 4,760 $ 990,338 $ 2,483,094 $ 36,851 $ 7,208 $ 2,527,153 |
Retirement benefits (Tables)
Retirement benefits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost for Consolidated HEI | The components of net periodic pension costs (NPPC) and net periodic benefit costs (NPBC) for HEI consolidated and Hawaiian Electric consolidated were as follows: Three months ended September 30 Nine months ended September 30 Pension benefits Other benefits Pension benefits Other benefits (in thousands) 2023 2022 2023 2022 2023 2022 2023 2022 HEI consolidated Service cost $ 11,418 $ 18,831 $ 385 $ 624 $ 34,210 $ 58,478 $ 1,072 $ 1,937 Interest cost 26,022 20,274 2,075 1,593 77,265 59,895 6,389 4,868 Expected return on plan assets (35,238) (35,163) (3,426) (3,394) (105,630) (105,827) (10,236) (10,189) Amortization of net prior period gain — — (218) (232) — — (656) (696) Amortization of net actuarial (gain)/losses 138 7,782 (518) (3) 515 20,376 (1,416) (9) Net periodic pension/benefit cost (return) 2,340 11,724 (1,702) (1,412) 6,360 32,922 (4,847) (4,089) Impact of PUC D&Os 17,663 8,758 1,536 1,289 53,929 27,861 4,385 3,725 Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) $ 20,003 $ 20,482 $ (166) $ (123) $ 60,289 $ 60,783 $ (462) $ (364) Hawaiian Electric consolidated Service cost $ 11,071 $ 18,248 $ 380 $ 617 $ 33,108 $ 56,883 $ 1,060 $ 1,915 Interest cost 24,116 18,850 1,981 1,525 71,513 55,773 6,107 4,670 Expected return on plan assets (33,029) (33,314) (3,374) (3,343) (98,972) (100,405) (10,081) (10,035) Amortization of net prior period gain — — (218) (232) — — (654) (694) Amortization of net actuarial (gain)/losses (16) 7,519 (503) — 21 19,769 (1,370) — Net periodic pension/benefit cost (return) 2,142 11,303 (1,734) (1,433) 5,670 32,020 (4,938) (4,144) Impact of PUC D&Os 17,663 8,758 1,536 1,289 53,929 27,861 4,385 3,725 Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) $ 19,805 $ 20,061 $ (198) $ (144) $ 59,599 $ 59,881 $ (553) $ (419) |
Share-based compensation (Table
Share-based compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation Expense and Related Income Tax Benefit | Share-based compensation expense and the related income tax benefit were as follows: Three months ended September 30 Nine months ended September 30 (in millions) 2023 2022 2023 2022 HEI consolidated Share-based compensation expense 1 $ 2.4 $ 1.7 $ 8.3 $ 7.3 Income tax benefit 0.5 0.4 1.6 1.5 Hawaiian Electric consolidated Share-based compensation expense 1 0.7 0.6 2.5 2.1 Income tax benefit 0.1 0.1 0.5 0.5 1 For the three and nine months ended September 30, 2023 and 2022, 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: Three months ended September 30 Nine months ended September 30 (dollars in millions) 2023 2022 2023 2022 Shares granted — 965 40,450 35,720 Fair value $ — $ — $ 1.5 $ 1.5 Income tax benefit — — 0.4 0.4 |
Schedule of Restricted Stock Units | Information about HEI’s grants of restricted stock units was as follows: Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 199,130 $ 41.22 208,953 $ 39.71 182,528 $ 39.75 233,448 $ 38.10 Granted — — — — 100,088 42.41 98,463 41.31 Vested — — (4,244) 39.49 (81,112) 39.37 (95,658) 37.73 Forfeited — — (16,540) 39.99 (2,374) 41.79 (48,084) 39.19 Outstanding, end of period 199,130 $ 41.22 188,169 $ 39.69 199,130 $ 41.22 188,169 $ 39.69 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ — $ 4.2 $ 4.1 |
Schedule of Long-Term Incentive Plan (LTIP) Linked to Total Return to Shareholders | Information about HEI’s LTIP grants linked to TSR was as follows: Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 79,284 $ 50.28 76,730 $ 47.74 71,574 $ 47.67 90,974 $ 42.86 Granted — — — — 27,123 55.98 26,469 54.92 Vested (issued or unissued and cancelled) — — — — (18,691) 48.62 (29,042) 41.07 Forfeited — — (4,829) 48.52 (722) 48.92 (16,500) 44.33 Outstanding, end of period 79,284 $ 50.28 71,901 $ 47.69 79,284 $ 50.28 71,901 $ 47.69 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ — $ 1.5 $ 1.5 |
Schedule of Long-Term Incentive Plan Assumptions | The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TSR and the resulting fair value of LTIP awards granted: 2023 2022 Risk-free interest rate 4.19 % 1.71 % Expected life in years 3 3 Expected volatility 33.1 % 31.0 % Range of expected volatility for Peer Group 28.7% to 38.8% 25.4% to 76.7% Grant date fair value (per share) $55.98 $54.92 |
Schedule of Long-Term Incentive Plan (LTIP) Linked to Other Performance Conditions | Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 357,477 $ 38.78 293,711 $ 39.91 309,589 $ 39.50 306,342 $ 38.42 Granted — — — — 108,499 42.41 105,860 41.31 Vested — — — — (62,778) 48.07 (71,807) 37.68 Increase above target 4,277 38.02 — — 10,278 37.77 — — Forfeited — — (19,316) 38.60 (3,834) 43.53 (66,000) 37.31 Outstanding, end of period 361,754 $ 39.17 274,395 $ 40.00 361,754 $ 39.17 274,395 $ 40.00 Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) $ — $ — $ 4.6 $ 4.4 |
Cash flows (Tables)
Cash flows (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Disclosures of Cash and Noncash Activity | Nine months ended September 30 2023 2022 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates, net of amounts capitalized $ 104 $ 59 Income taxes paid (including refundable credits) 28 26 Income taxes refunded (including refundable credits) 1 2 Hawaiian Electric consolidated Interest paid to non-affiliates 45 40 Income taxes paid (including refundable credits) 38 46 Income taxes refunded (including refundable credits) 2 — Supplemental disclosures of noncash activities HEI consolidated Property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 9 6 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 45 34 Increase related to an acquisition (investing) — 15 Right-of-use assets obtained in exchange for finance lease obligations (financing) 76 48 Right-of-use assets obtained in exchange for operating lease obligations (investing) 1 48 Property, plant, equipment and other assets received in exchange for the assumption of debt associated with a business acquisition (investing) — 68 Debt, lease liabilities and other liabilities assumed in business acquisition (financing) — 68 Common stock issued (gross) for director and executive/management compensation (financing) 1 8 10 Obligations to fund low income housing investments (investing) 7 9 Loans transferred from held for investment to held for sale (investing) 95 — Transfer of retail repurchase agreements to deposit liabilities (financing) 98 — Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 9 6 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 43 31 Increase related to an acquisition (investing) — 15 Right-of-use assets obtained in exchange for finance lease obligations (financing) 76 48 Right-of-use assets obtained in exchange for operating lease obligations (investing) — 44 1 The amounts shown represent the market value of common stock issued for director and executive/management compensation and withheld to satisfy statutory tax liabilities. |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying or Notional Amount, Fair Value and Placement in the Fair Value Hierarchy of the Company’s Financial Instruments | The following table presents the carrying or notional amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments. Estimated fair value (in thousands) Carrying or notional amount Quoted prices in Significant Significant Total September 30, 2023 Financial assets HEI consolidated Available-for-sale investment securities $ 1,266,412 $ — $ 1,251,918 $ 14,494 $ 1,266,412 Held-to-maturity investment securities 1,212,005 — 1,052,221 — 1,052,221 Loans, net 6,116,811 — 2,174 5,541,812 5,543,986 Mortgage servicing rights 8,376 — — 18,867 18,867 Derivative assets 19,044 15 1,350 — 1,365 Financial liabilities HEI consolidated Deposit liabilities 1,050,692 — 1,035,501 — 1,035,501 Other bank borrowings 750,000 — 743,366 — 743,366 Long-term debt, net—other than bank 2,944,589 — 2,120,573 — 2,120,573 Derivative liabilities 22,949 — 1,344 — 1,344 Hawaiian Electric consolidated Long-term debt, net 2,034,040 — 1,400,901 — 1,400,901 December 31, 2022 Financial assets HEI consolidated Available-for-sale investment securities $ 1,429,667 $ — $ 1,414,765 $ 14,902 $ 1,429,667 Held-to-maturity investment securities 1,251,747 — 1,150,971 — 1,150,971 Loans, net 5,907,514 — 821 5,453,381 5,454,202 Mortgage servicing rights 9,047 — — 17,646 17,646 Derivative assets 16,220 18 1,330 — 1,348 Financial liabilities HEI consolidated Deposit liabilities 611,718 — 597,617 — 597,617 Short-term borrowings—other than bank 172,568 — 172,568 — 172,568 Other bank borrowings 695,120 — 695,095 — 695,095 Long-term debt, net—other than bank 2,384,980 — 2,122,605 — 2,122,605 Derivative liabilities 22,949 — 472 — 472 Hawaiian Electric consolidated Short-term borrowings 87,967 — 87,967 — 87,967 Long-term debt, net 1,684,816 — 1,487,496 — 1,487,496 |
Schedule of Assets Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis were as follows: September 30, 2023 December 31, 2022 Fair value measurements using Fair value measurements using (in thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Available-for-sale investment securities (bank segment) Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ — $ 1,145,167 $ — $ — $ 1,292,968 $ — U.S. Treasury and federal agency obligations — 75,000 — — 81,063 — Corporate bonds — 31,751 — — 40,734 — Mortgage revenue bonds — — 14,494 — — 14,902 $ — $ 1,251,918 $ 14,494 $ — $ 1,414,765 $ 14,902 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 54 $ — $ — $ 9 $ — Forward commitments (bank segment) 1 15 — — 18 — — Interest rate swap (Other segment) 2 — 1,296 — — 1,321 — $ 15 $ 1,350 $ — $ 18 $ 1,330 $ — Derivative liabilities Interest rate swap (Other segment) 2 $ — $ 1,344 $ — $ — $ 472 $ — 1 Derivatives are carried at fair value in other assets or other liabilities in the balance sheets with changes in value included in mortgage banking income. 2 Derivatives are included in other assets and other liabilities in the balance sheets. |
Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: Three months ended September 30 Nine months ended September 30 Mortgage revenue bonds 2023 2022 2023 2022 (in thousands) Beginning balance $ 14,630 $ 15,165 $ 14,902 $ 15,427 Principal payments received (136) (132) (408) (394) Purchases — — — — Unrealized gain (loss) included in other comprehensive income — — — — Ending balance $ 14,494 $ 15,033 $ 14,494 $ 15,033 |
Maui windstorm and wildfires -
Maui windstorm and wildfires - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 08, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) claim | Nov. 08, 2023 USD ($) | |
Public Utilities, General Disclosures [Line Items] | ||||
Property insurance policy limit | $ 500 | |||
Retention for property damages | $ 1 | |||
Lawsuit claim filed | claim | 1 | |||
Natural Disasters and Other Casualty Events | Subsequent Event | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Expected funding amount | $ 150 | |||
Expected beneficiary amount | $ 1 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Percentage of electric service restored | 95% | |||
Hawaiian Electric Company, Inc. and Subsidiaries | Natural Disasters and Other Casualty Events | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Committed contribution to humanitarian fund | $ 75 | $ 75 | ||
Insurance reimbursement receivable | 75 | 75 | ||
Maui Windstorm and Wildfires | Natural Disasters and Other Casualty Events | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Incremental expenses | 27.6 | |||
Maui Windstorm and Wildfires | Hawaiian Electric Company, Inc. and Subsidiaries | Natural Disasters and Other Casualty Events | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Incremental expenses | $ 8 | |||
Maui Windstorm and Wildfires | Maui Wildfire Negligence | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Legal expenses | 10.8 | |||
Excess liability insurance | 165 | |||
Excess liability insurance, retention amount | 1.5 | |||
Maui Windstorm and Wildfires | Maui Wildfire Negligence | Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Legal expenses | $ 6.3 |
Maui windstorm and wildfires _2
Maui windstorm and wildfires - Utilities Charged (Details) - Natural Disasters and Other Casualty Events - Hawaiian Electric Company, Inc. and Subsidiaries $ in Millions | Sep. 30, 2023 USD ($) |
Public Utilities, General Disclosures [Line Items] | |
One 'Ohana Initiative contribution | $ 75 |
Insurance recovery | $ (75) |
Segment financial information -
Segment financial information - Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Segment financial information | |||||||||
Revenues | $ 901,873 | $ 1,042,197 | $ 2,725,795 | $ 2,722,872 | |||||
Income (loss) before income taxes | 49,110 | 79,905 | 188,781 | 233,602 | |||||
Income taxes (benefit) | 7,521 | 17,352 | 36,915 | 48,395 | |||||
Net income (loss) | 41,589 | 62,553 | 151,866 | 185,207 | |||||
Preferred stock dividends of Hawaiian Electric | 471 | 471 | 1,417 | 1,417 | |||||
Net income for common stock | 41,118 | $ 54,610 | $ 54,721 | 62,082 | $ 52,541 | $ 69,167 | 150,449 | 183,790 | |
Total assets | 16,991,818 | 16,991,818 | $ 16,284,244 | ||||||
Revenues from external customers and other sources | |||||||||
Segment financial information | |||||||||
Revenues | 2,722,872 | ||||||||
Intersegment revenues (eliminations) | |||||||||
Segment financial information | |||||||||
Revenues | 0 | ||||||||
Electric utility | |||||||||
Segment financial information | |||||||||
Revenues | 794,987 | 955,971 | 2,419,539 | 2,483,636 | |||||
Income (loss) before income taxes | 55,415 | 63,712 | 175,391 | 179,771 | |||||
Income taxes (benefit) | 11,456 | 13,450 | 38,126 | 37,967 | |||||
Net income (loss) | 43,959 | 50,262 | 137,265 | 141,804 | |||||
Preferred stock dividends of Hawaiian Electric | 498 | 498 | 1,496 | 1,496 | |||||
Net income for common stock | 43,461 | 49,764 | 135,769 | 140,308 | |||||
Total assets | 7,078,447 | 7,078,447 | 6,597,467 | ||||||
Electric utility | Revenues from external customers and other sources | |||||||||
Segment financial information | |||||||||
Revenues | 2,483,632 | ||||||||
Electric utility | Intersegment revenues (eliminations) | |||||||||
Segment financial information | |||||||||
Revenues | 4 | ||||||||
Bank | |||||||||
Segment financial information | |||||||||
Revenues | 100,974 | 81,411 | 291,716 | 231,850 | |||||
Income (loss) before income taxes | 12,749 | 27,281 | 61,511 | 79,605 | |||||
Income taxes (benefit) | 1,384 | 6,525 | 11,380 | 17,513 | |||||
Net income (loss) | 11,365 | 20,756 | 50,131 | 62,092 | |||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | |||||
Net income for common stock | 11,365 | 20,756 | 50,131 | 62,092 | |||||
Total assets | 9,657,428 | 9,657,428 | 9,545,970 | ||||||
Bank | Revenues from external customers and other sources | |||||||||
Segment financial information | |||||||||
Revenues | 231,850 | ||||||||
Bank | Intersegment revenues (eliminations) | |||||||||
Segment financial information | |||||||||
Revenues | 0 | ||||||||
Other | |||||||||
Segment financial information | |||||||||
Revenues | 5,912 | 4,815 | 14,540 | 7,386 | |||||
Income (loss) before income taxes | (19,054) | (11,088) | (48,121) | (25,774) | |||||
Income taxes (benefit) | (5,319) | (2,623) | (12,591) | (7,085) | |||||
Net income (loss) | (13,735) | (8,465) | (35,530) | (18,689) | |||||
Preferred stock dividends of Hawaiian Electric | (27) | (27) | (79) | (79) | |||||
Net income for common stock | (13,708) | $ (8,438) | (35,451) | (18,610) | |||||
Total assets | $ 255,943 | $ 255,943 | $ 140,807 | ||||||
Other | Revenues from external customers and other sources | |||||||||
Segment financial information | |||||||||
Revenues | 7,390 | ||||||||
Other | Intersegment revenues (eliminations) | |||||||||
Segment financial information | |||||||||
Revenues | $ (4) |
Electric utility segment - Unco
Electric utility segment - Unconsolidated Variable Interest Entities (Details) | 9 Months Ended |
Sep. 30, 2023 entity agreement | |
Power purchase agreement | |
Number of IPPs (in entities) | entity | 2 |
Hawaiian Electric Company | |
Power purchase agreement | |
Number of power purchase agreements (PPAs) (in agreements) | agreement | 4 |
Electric utility segment - Powe
Electric utility segment - Power Purchase Agreements (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Apr. 21, 2023 MW | Oct. 31, 2021 | Jul. 31, 2018 MW | Feb. 28, 2018 USD ($) agreement MW | May 31, 2012 MW | Sep. 30, 2023 USD ($) project | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) project | Sep. 30, 2022 USD ($) | Dec. 31, 1988 MW | Dec. 31, 2022 USD ($) | |
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Finance lease liabilities | $ 122,320 | $ 122,320 | $ 48,709 | ||||||||
Kalaeloa | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Purchase commitment, extension period (in years) | 10 years | ||||||||||
Stage 1 Renewable PPAs | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Number of power purchase agreements (PPAs) (in agreements) | agreement | 8 | ||||||||||
Minimum power volume required (in megawatts) | MW | 30 | 274.5 | |||||||||
Estimated annual cost | $ 71,200 | ||||||||||
Long term purchase commitments, number of projects | project | 3 | 3 | |||||||||
Finance lease liabilities | $ 124,000 | $ 124,000 | |||||||||
Financing lease right-of-use assets | 124,000 | 124,000 | |||||||||
Total contracted PV capacity (in megawatts) | MW | 120 | ||||||||||
Hu Honua Bioenergy, LLC | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Minimum power volume required (in megawatts) | MW | 21.5 | ||||||||||
Molokai New Energy Partners | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Total contracted PV capacity (in megawatts) | MW | 4.88 | ||||||||||
Total contracted battery energy storage system capacity | MW | 3 | ||||||||||
Maximum power volume to be delivered (in megawatts) | MW | 2.64 | ||||||||||
Hawaiian Electric, Parent | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Purchased power | 178,000 | $ 225,000 | 499,000 | $ 607,000 | |||||||
Hawaiian Electric, Parent | Kalaeloa | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Purchased power | 77,000 | 101,000 | 211,000 | 244,000 | |||||||
Increased power purchase commitment capacity (in megawatts) | MW | 208 | ||||||||||
Hawaiian Electric, Parent | AES Hawaii | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Purchased power | 0 | 21,000 | 0 | 82,000 | |||||||
Hawaiian Electric, Parent | HPOWER | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Purchased power | 17,000 | 18,000 | 51,000 | 56,000 | |||||||
Hawaiian Electric, Parent | Hamakua Energy | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Purchased power | 13,000 | 16,000 | 52,000 | 46,000 | |||||||
Hawaiian Electric, Parent | Puna Geothermal Venture | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Purchased power | 7,000 | 13,000 | 24,000 | 37,000 | |||||||
Hawaiian Electric, Parent | Wind IPPs | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Purchased power | 42,000 | 37,000 | 99,000 | 93,000 | |||||||
Hawaiian Electric, Parent | Solar IPPs | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Purchased power | 21,000 | 18,000 | 57,000 | 44,000 | |||||||
Hawaiian Electric, Parent | Other IPPs | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Purchased power | $ 1,000 | $ 1,000 | $ 5,000 | $ 5,000 |
Electric utility segment - Util
Electric utility segment - Utility Projects (Details) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 01, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Nov. 30, 2021 USD ($) | Oct. 31, 2020 transmission_line generationUnit kV | |
Public Utilities, General Disclosures [Line Items] | |||||
Environmental loss contingency, statement of financial position, not disclosed | reserve account balance | ||||
Maui Electric | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Additional accrued investigation and estimated cleanup costs | $ 2.6 | ||||
Hawaiian Electric, Parent | PCB Contamination | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Valuation allowances and reserves | 9.7 | ||||
Hawaiian Electric, Parent | Kapolei Petroleum Contamination | James Campbell Company | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Environmental remediation expense | $ 1.2 | $ 0.8 | |||
Waena Switchyard/Synchronous Condenser Project | Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Number of extended transmission lines | transmission_line | 2 | ||||
Number of kilovolts | kV | 69 | ||||
Number of generating units converting to synchronous condensers | generationUnit | 2 | ||||
Renewable energy generation project, approved funds | $ 38.8 | ||||
Renewable energy generation project, incurred cost | $ 24.7 |
Electric utility segment - Regu
Electric utility segment - Regulatory Proceedings (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 09, 2022 USD ($) | Feb. 16, 2021 agreement | Dec. 23, 2020 USD ($) | Sep. 15, 2020 agreement | Sep. 30, 2023 USD ($) agreement contract project | Jun. 30, 2022 USD ($) | Nov. 30, 2021 agreement | Nov. 30, 2021 entity | Mar. 31, 2023 agreement | Sep. 30, 2023 USD ($) MWh project contract | Dec. 31, 2022 USD ($) | Dec. 31, 2019 USD ($) agreement | Feb. 28, 2023 USD ($) | Jun. 17, 2022 mechanism | Dec. 31, 2021 USD ($) | Jun. 01, 2021 mechanism | Mar. 23, 2021 mechanism | Dec. 31, 2020 entity | Jul. 09, 2020 agreement | Jun. 10, 2019 USD ($) | Oct. 31, 2018 USD ($) | |
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||||||||||||
PUC proposal period (in days) | 45 days | ||||||||||||||||||||
Public utilities, modified pilot process proposal period (in days) | 15 days | ||||||||||||||||||||
Propose pilots annual cap | $ 10,000 | ||||||||||||||||||||
Potential total annual maximum reward | $ 2,000 | $ 2,000 | |||||||||||||||||||
Advanced metering infrastructure term (in years) | 3 years | ||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||||||||||||
Number of performance incentive mechanisms | mechanism | 2 | 3 | 2 | ||||||||||||||||||
Multi-year rate period (in years) | 5 years | ||||||||||||||||||||
Customer dividend, negative adjustment percentage | 0.22% | ||||||||||||||||||||
Savings commitment liability, annual rate | $ 6,600 | ||||||||||||||||||||
Recovery of deferral costs | $ 27,800 | $ 27,800 | |||||||||||||||||||
Recovery of deferral costs period (in years) | 3 years | 3 years | |||||||||||||||||||
Earnings sharing mechanism, actual return on equity, dead band percentage above or below target | 3% | ||||||||||||||||||||
Approved return on equity, percentage | 9.50% | ||||||||||||||||||||
Percentage sharing between customers and utilities | 50 | ||||||||||||||||||||
Earnings sharing mechanism, actual earning, above or below dead band | 1.50% | ||||||||||||||||||||
Percentage sharing for any further difference | 90 | ||||||||||||||||||||
MPIR and EPRM requested amount | $ 31,100 | ||||||||||||||||||||
EPRM approved projects | contract | 2 | 2 | |||||||||||||||||||
EPRM approved projects, capital costs | $ 41,000 | ||||||||||||||||||||
Number of projects | project | 5 | 5 | |||||||||||||||||||
Estimated capital costs | $ 488,000 | ||||||||||||||||||||
2022 deferred cost recovery approved | $ 400 | ||||||||||||||||||||
Decoupling order, service reliability performance, historical measurement period (in years) | 10 years | ||||||||||||||||||||
Maximum penalty, percent of ROE | 0.20% | ||||||||||||||||||||
Service reliability, pending adjusted maximum penalty amount | $ 6,800 | ||||||||||||||||||||
Service reliability, estimated penalties | $ 100 | ||||||||||||||||||||
Dead band percentage above or below the target | 3% | ||||||||||||||||||||
Call center performance, maximum penalty percentage | 0.08% | ||||||||||||||||||||
Call center performance, pending adjusted maximum penalty | $ 1,400 | ||||||||||||||||||||
Number of power purchase agreements (PPAs) (in agreements) | agreement | 1 | 1 | 1 | 7 | |||||||||||||||||
Incentives accrued | $ 100 | $ 100 | $ 1,700 | $ 100 | |||||||||||||||||
Number of grid service purchase agreements | agreement | 2 | ||||||||||||||||||||
Number of PPAs approved | 2 | 2 | |||||||||||||||||||
Number of GSPAs approved | entity | 2 | ||||||||||||||||||||
Number of power purchase agreements terminated | agreement | 2 | ||||||||||||||||||||
Interpolated RPS rate goal, year one and two (in dollars per MWh) | MWh | 20 | ||||||||||||||||||||
Interpolated RPS rate goal, year three (in dollars per MWh) | MWh | 15 | ||||||||||||||||||||
Interpolated RPS rate goal, after year three (in dollars per MWh) | MWh | 10 | ||||||||||||||||||||
Failure to meet RPS targets, penalty rate (in dollars per MWh) | MWh | 20 | ||||||||||||||||||||
Potential total annual maximum reward | 1,500 | $ 1,500 | |||||||||||||||||||
Public utilities, grid services procurement performance incentive mechanism, accrued estimated rewards | 40 | ||||||||||||||||||||
Potential total annual maximum reward | 3,000 | 3,000 | |||||||||||||||||||
Total annual maximum penalty | 900 | 900 | |||||||||||||||||||
Interconnection approval PIM, accrued estimated rewards | 3,000 | ||||||||||||||||||||
Performance incentive mechanism, maximum reward | $ 2,000 | $ 2,000 | |||||||||||||||||||
Performance incentive mechanism, term (in years) | 3 years | ||||||||||||||||||||
Performance incentive mechanism, accrued estimated rewards | $ 500 | ||||||||||||||||||||
Target performance historical measurement period (in years) | 10 years | ||||||||||||||||||||
Percent of return on equity | 0.03% | ||||||||||||||||||||
Pending adjusted amount | $ 1,000 | ||||||||||||||||||||
Target performance period (in months) | 10 months | ||||||||||||||||||||
Target deadband period (in months) | 2 months | ||||||||||||||||||||
Accrued earned rewards, net of penalties | 3,400 | ||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | COVID-19 | |||||||||||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||||||||||||
Public utilities in regulatory assets | $ 8,800 | ||||||||||||||||||||
Hawaiian Electric, Parent | |||||||||||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||||||||||||
Public utilities retained percentage | 20% | ||||||||||||||||||||
Accrued earned rewards, net of penalties | 2,500 | ||||||||||||||||||||
Hawaii Electric Light Company, Inc | |||||||||||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||||||||||||
Accrued earned rewards, net of penalties | 400 | ||||||||||||||||||||
Maui Electric | |||||||||||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||||||||||||
Accrued earned rewards, net of penalties | $ 500 | ||||||||||||||||||||
Schofield Generation Station | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||||||||||||
MPIR requested amount | $ 16,500 | ||||||||||||||||||||
West Loch PV Project | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||||||||||||
MPIR requested amount | 3,300 | ||||||||||||||||||||
Grid Modernization Strategy Phase 1 Project | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||||||||||||
MPIR requested amount | 11,200 | ||||||||||||||||||||
Waiawa UFLS Project | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||||||||||||
EPRM requested amount | $ 100 | ||||||||||||||||||||
ERP/EAM Implementation Project | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||||||||||||
ERP/EAM project service period (in years) | 12 years | ||||||||||||||||||||
ERP/EAM project service, savings over 12 years | $ 246,000 | ||||||||||||||||||||
Future O&M expense reductions | $ 150,000 | ||||||||||||||||||||
Future cost avoidance related to capital cost and tax costs | $ 96,000 | ||||||||||||||||||||
Regulatory liability, amortization period (in years) | 5 years | 5 years | |||||||||||||||||||
Regulatory liability for O&M expense reductions | $ 11,900 | $ 11,900 | |||||||||||||||||||
ERP/EAM Implementation Project | Hawaiian Electric, Parent | |||||||||||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||||||||||||
Regulatory liability for O&M expense reductions | 3,000 | 3,000 | |||||||||||||||||||
ERP/EAM Implementation Project | Hawaii Electric Light Company, Inc | |||||||||||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||||||||||||
Regulatory liability for O&M expense reductions | 3,500 | 3,500 | |||||||||||||||||||
ERP/EAM Implementation Project | Maui Electric | |||||||||||||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||||||||||||
Regulatory liability for O&M expense reductions | $ 5,400 | $ 5,400 |
Electric utility segment - Annu
Electric utility segment - Annual Decoupling Filings Summary (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 31, 2023 | Sep. 30, 2023 | |
Regulatory Projects and Legal Obligations [Line Items] | ||
Incremental RAM revenues and ARA revenues | $ 24.9 | |
Annual change in accrued RBA balance through September 30, 2023 (and associated revenue taxes) | 3.4 | |
Incremental Performance Incentive Mechanisms (net) | 0.1 | |
Net incremental amount to be collected under the RBA rate tariffs | 28.4 | |
Subsequent Event | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
2024 ARA revenues | $ 24.7 | |
Management Audit savings commitment | (6.6) | |
Enterprise Resource Planning system benefits savings | (3.2) | |
COVID-19 related cost recovery | 3.4 | |
Net 2024 ARA revenues | 18.3 | |
Hawaiian Electric, Parent | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Incremental RAM revenues and ARA revenues | 19.2 | |
Annual change in accrued RBA balance through September 30, 2023 (and associated revenue taxes) | 3.6 | |
Incremental Performance Incentive Mechanisms (net) | 0.1 | |
Net incremental amount to be collected under the RBA rate tariffs | 22.9 | |
Hawaiian Electric, Parent | Subsequent Event | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
2024 ARA revenues | 16.6 | |
Management Audit savings commitment | (4.6) | |
Enterprise Resource Planning system benefits savings | 0 | |
COVID-19 related cost recovery | 2.6 | |
Net 2024 ARA revenues | 14.6 | |
Hawaii Electric Light | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Incremental RAM revenues and ARA revenues | 3 | |
Annual change in accrued RBA balance through September 30, 2023 (and associated revenue taxes) | (0.3) | |
Incremental Performance Incentive Mechanisms (net) | 0 | |
Net incremental amount to be collected under the RBA rate tariffs | 2.7 | |
Hawaii Electric Light | Subsequent Event | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
2024 ARA revenues | 4.1 | |
Management Audit savings commitment | (1) | |
Enterprise Resource Planning system benefits savings | (1.3) | |
COVID-19 related cost recovery | 0.2 | |
Net 2024 ARA revenues | 2 | |
Maui Electric | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Incremental RAM revenues and ARA revenues | 2.7 | |
Annual change in accrued RBA balance through September 30, 2023 (and associated revenue taxes) | 0.1 | |
Incremental Performance Incentive Mechanisms (net) | 0 | |
Net incremental amount to be collected under the RBA rate tariffs | $ 2.8 | |
Maui Electric | Subsequent Event | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
2024 ARA revenues | 4 | |
Management Audit savings commitment | (1) | |
Enterprise Resource Planning system benefits savings | (1.9) | |
COVID-19 related cost recovery | 0.6 | |
Net 2024 ARA revenues | $ 1.7 |
Electric utility segment - Re_2
Electric utility segment - Regulatory Assets for COVID-19 Related Costs (Details) - Hawaiian Electric Company, Inc. and Subsidiaries - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | ||
Jun. 09, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2023 | |
Regulatory Projects and Legal Obligations [Line Items] | ||||
Recovery of deferral costs | $ 27.8 | $ 27.8 | ||
Recovery of deferral costs period (in years) | 3 years | 3 years | ||
COVID-19 | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Customer bill forgiveness | $ 2 | |||
Public utilities in regulatory assets | $ 8.8 |
Electric utility segment - Re_3
Electric utility segment - Regulatory Assets for Suspension of Disconnections Related Costs (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Regulatory Projects and Legal Obligations [Line Items] | ||
Regulatory assets | $ 231,197 | $ 242,513 |
Hawaiian Electric Company, Inc. and Subsidiaries | Suspension Of Disconnections | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Regulatory assets | $ 100 |
Electric utility segment - Army
Electric utility segment - Army Privatization (Details) - Hawaiian Electric Company, Inc. and Subsidiaries $ in Millions | Mar. 01, 2022 USD ($) | Oct. 30, 2020 USD ($) installation |
Regulatory Projects and Legal Obligations [Line Items] | ||
Public utilities, electric distribution system, contract period (in years) | 50 years | 50 years |
Number of U.S. army installations being serviced | installation | 12 | |
Purchase price | $ 14.5 | |
price of acquisition, expected | $ 4 | |
Transition period (in years) | 1 year | |
Capital upgrade over the period (in years) | 6 years |
Electric utility segment - Cond
Electric utility segment - Condensed Consolidating Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | $ 901,873 | $ 1,042,197 | $ 2,725,795 | $ 2,722,872 | ||||
Expenses | ||||||||
Total expenses | 826,762 | 940,082 | 2,464,187 | 2,434,813 | ||||
Operating income (loss) | 75,111 | 102,115 | 261,608 | 288,059 | ||||
Allowance for equity funds used during construction | 4,000 | 2,552 | 11,073 | 7,431 | ||||
Retirement defined benefits credit (expense)—other than service costs | 1,256 | 1,039 | 3,561 | 3,528 | ||||
Allowance for borrowed funds used during construction | 1,372 | 825 | 3,798 | 2,401 | ||||
Income (loss) before income taxes | 49,110 | 79,905 | 188,781 | 233,602 | ||||
Income taxes | 7,521 | 17,352 | 36,915 | 48,395 | ||||
Net income (loss) | 41,589 | 62,553 | 151,866 | 185,207 | ||||
Preferred stock dividends of Hawaiian Electric | 471 | 471 | 1,417 | 1,417 | ||||
Net income for common stock | 41,118 | $ 54,610 | $ 54,721 | 62,082 | $ 52,541 | $ 69,167 | 150,449 | 183,790 |
Hawaiian Electric Consolidated | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 794,987 | 955,971 | 2,419,539 | 2,483,636 | ||||
Expenses | ||||||||
Fuel oil | 267,438 | 383,602 | 881,692 | 874,543 | ||||
Purchased power | 177,795 | 225,209 | 498,990 | 606,827 | ||||
Other operation and maintenance | 142,508 | 121,110 | 407,184 | 371,259 | ||||
Depreciation | 61,165 | 58,711 | 182,781 | 175,921 | ||||
Taxes, other than income taxes | 74,723 | 88,290 | 228,034 | 231,288 | ||||
Total expenses | 723,629 | 876,922 | 2,198,681 | 2,259,838 | ||||
Operating income (loss) | 71,358 | 79,049 | 220,858 | 223,798 | ||||
Allowance for equity funds used during construction | 4,000 | 2,552 | 11,073 | 7,431 | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Retirement defined benefits credit (expense)—other than service costs | 1,132 | 895 | 3,227 | 2,876 | ||||
Interest expense and other charges, net | (22,447) | (19,609) | (63,565) | (56,735) | ||||
Allowance for borrowed funds used during construction | 1,372 | 825 | 3,798 | 2,401 | ||||
Income (loss) before income taxes | 55,415 | 63,712 | 175,391 | 179,771 | ||||
Income taxes | 11,456 | 13,450 | 38,126 | 37,967 | ||||
Net income | 43,959 | 50,262 | 137,265 | 141,804 | ||||
Preferred stock dividends of subsidiaries | 228 | 228 | 686 | 686 | ||||
Net income (loss) | 43,731 | 50,034 | 136,579 | 141,118 | ||||
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 810 | 810 | ||||
Net income for common stock | 43,461 | $ 45,299 | $ 47,009 | 49,764 | $ 44,135 | $ 46,409 | 135,769 | 140,308 |
Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 0 | (78) | (130) | (113) | ||||
Expenses | ||||||||
Fuel oil | 0 | 0 | 0 | 0 | ||||
Purchased power | 0 | 0 | 0 | 0 | ||||
Other operation and maintenance | 0 | 0 | 0 | 0 | ||||
Depreciation | 0 | 0 | 0 | 0 | ||||
Taxes, other than income taxes | 0 | 0 | 0 | 0 | ||||
Total expenses | 0 | 0 | 0 | 0 | ||||
Operating income (loss) | 0 | (78) | (130) | (113) | ||||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 | ||||
Equity in earnings of subsidiaries | (3,005) | (10,577) | (25,960) | (36,475) | ||||
Retirement defined benefits credit (expense)—other than service costs | 0 | 0 | 0 | 0 | ||||
Interest expense and other charges, net | 0 | 78 | 130 | 113 | ||||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | 0 | ||||
Income (loss) before income taxes | (3,005) | (10,577) | (25,960) | (36,475) | ||||
Income taxes | 0 | 0 | 0 | 0 | ||||
Net income | (3,005) | (10,577) | (25,960) | (36,475) | ||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income (loss) | (3,005) | (10,577) | (25,960) | (36,475) | ||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||||
Net income for common stock | (3,005) | (10,577) | (25,960) | (36,475) | ||||
Hawaiian Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 570,323 | 693,281 | 1,742,542 | 1,769,995 | ||||
Expenses | ||||||||
Fuel oil | 196,223 | 280,447 | 663,521 | 619,169 | ||||
Purchased power | 132,536 | 171,470 | 362,275 | 460,855 | ||||
Other operation and maintenance | 83,528 | 77,115 | 255,728 | 243,478 | ||||
Depreciation | 41,276 | 39,474 | 123,114 | 118,459 | ||||
Taxes, other than income taxes | 53,511 | 64,051 | 164,510 | 165,350 | ||||
Total expenses | 507,074 | 632,557 | 1,569,148 | 1,607,311 | ||||
Operating income (loss) | 63,249 | 60,724 | 173,394 | 162,684 | ||||
Allowance for equity funds used during construction | 3,005 | 2,063 | 8,604 | 5,999 | ||||
Equity in earnings of subsidiaries | 3,005 | 10,577 | 25,960 | 36,475 | ||||
Retirement defined benefits credit (expense)—other than service costs | 992 | 760 | 2,801 | 2,471 | ||||
Interest expense and other charges, net | (16,295) | (14,221) | (45,594) | (40,833) | ||||
Allowance for borrowed funds used during construction | 1,047 | 674 | 2,995 | 1,962 | ||||
Income (loss) before income taxes | 55,003 | 60,577 | 168,160 | 168,758 | ||||
Income taxes | 11,272 | 10,543 | 31,581 | 27,640 | ||||
Net income | 43,731 | 50,034 | 136,579 | 141,118 | ||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income (loss) | 43,731 | 50,034 | 136,579 | 141,118 | ||||
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 810 | 810 | ||||
Net income for common stock | 43,461 | 49,764 | 135,769 | 140,308 | ||||
Hawaii Electric Light | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 116,192 | 130,858 | 343,554 | 363,888 | ||||
Expenses | ||||||||
Fuel oil | 30,956 | 40,540 | 79,187 | 98,856 | ||||
Purchased power | 30,265 | 37,263 | 101,597 | 106,710 | ||||
Other operation and maintenance | 21,351 | 21,882 | 64,367 | 63,427 | ||||
Depreciation | 10,635 | 10,350 | 31,906 | 31,053 | ||||
Taxes, other than income taxes | 10,857 | 12,026 | 31,983 | 33,436 | ||||
Total expenses | 104,064 | 122,061 | 309,040 | 333,482 | ||||
Operating income (loss) | 12,128 | 8,797 | 34,514 | 30,406 | ||||
Allowance for equity funds used during construction | 366 | 206 | 1,004 | 616 | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Retirement defined benefits credit (expense)—other than service costs | 163 | 166 | 500 | 500 | ||||
Interest expense and other charges, net | (2,988) | (2,716) | (8,794) | (7,967) | ||||
Allowance for borrowed funds used during construction | 117 | 63 | 321 | 190 | ||||
Income (loss) before income taxes | 9,786 | 6,516 | 27,545 | 23,745 | ||||
Income taxes | 2,234 | 1,424 | 6,261 | 5,351 | ||||
Net income | 7,552 | 5,092 | 21,284 | 18,394 | ||||
Preferred stock dividends of subsidiaries | 133 | 133 | 400 | 400 | ||||
Net income (loss) | 7,419 | 4,959 | 20,884 | 17,994 | ||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||||
Net income for common stock | 7,419 | 4,959 | 20,884 | 17,994 | ||||
Maui Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 108,472 | 131,910 | 333,573 | 349,866 | ||||
Expenses | ||||||||
Fuel oil | 40,259 | 62,615 | 138,984 | 156,518 | ||||
Purchased power | 14,994 | 16,476 | 35,118 | 39,262 | ||||
Other operation and maintenance | 37,629 | 22,113 | 87,089 | 64,354 | ||||
Depreciation | 9,254 | 8,887 | 27,761 | 26,409 | ||||
Taxes, other than income taxes | 10,355 | 12,213 | 31,541 | 32,502 | ||||
Total expenses | 112,491 | 122,304 | 320,493 | 319,045 | ||||
Operating income (loss) | (4,019) | 9,606 | 13,080 | 30,821 | ||||
Allowance for equity funds used during construction | 629 | 283 | 1,465 | 816 | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Retirement defined benefits credit (expense)—other than service costs | (23) | (31) | (74) | (95) | ||||
Interest expense and other charges, net | (3,164) | (2,750) | (9,307) | (8,048) | ||||
Allowance for borrowed funds used during construction | 208 | 88 | 482 | 249 | ||||
Income (loss) before income taxes | (6,369) | 7,196 | 5,646 | 23,743 | ||||
Income taxes | (2,050) | 1,483 | 284 | 4,976 | ||||
Net income | (4,319) | 5,713 | 5,362 | 18,767 | ||||
Preferred stock dividends of subsidiaries | 95 | 95 | 286 | 286 | ||||
Net income (loss) | (4,414) | 5,618 | 5,076 | 18,481 | ||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||||
Net income for common stock | (4,414) | 5,618 | 5,076 | 18,481 | ||||
Other subsidiary | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 0 | 0 | 0 | 0 | ||||
Expenses | ||||||||
Fuel oil | 0 | 0 | 0 | 0 | ||||
Purchased power | 0 | 0 | 0 | 0 | ||||
Other operation and maintenance | 0 | 0 | 0 | 0 | ||||
Depreciation | 0 | 0 | 0 | 0 | ||||
Taxes, other than income taxes | 0 | 0 | 0 | 0 | ||||
Total expenses | 0 | 0 | 0 | 0 | ||||
Operating income (loss) | 0 | 0 | 0 | 0 | ||||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Retirement defined benefits credit (expense)—other than service costs | 0 | 0 | 0 | 0 | ||||
Interest expense and other charges, net | 0 | 0 | 0 | 0 | ||||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | 0 | ||||
Income (loss) before income taxes | 0 | 0 | 0 | 0 | ||||
Income taxes | 0 | 0 | 0 | 0 | ||||
Net income | 0 | 0 | 0 | 0 | ||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income (loss) | 0 | 0 | 0 | 0 | ||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||||
Net income for common stock | $ 0 | $ 0 | $ 0 | $ 0 |
Electric utility segment - Co_2
Electric utility segment - Condensed Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income (loss) for common stock | $ 41,118 | $ 54,610 | $ 54,721 | $ 62,082 | $ 52,541 | $ 69,167 | $ 150,449 | $ 183,790 |
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net gains recognized during the period in net periodic benefit cost, net of taxes | (446) | 5,606 | (1,160) | 10,229 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 470 | (5,303) | 1,321 | (9,572) | ||||
Other comprehensive income (loss), net of taxes | (34,875) | (7,609) | 20,488 | (96,012) | (87,840) | (117,159) | (21,996) | (301,011) |
Comprehensive income (loss) attributable to Hawaiian Electric Industries, Inc. | 6,243 | (33,930) | 128,453 | (117,221) | ||||
Hawaiian Electric Consolidated | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income (loss) for common stock | 43,461 | 45,299 | 47,009 | 49,764 | 44,135 | 46,409 | 135,769 | 140,308 |
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net gains recognized during the period in net periodic benefit cost, net of taxes | (547) | 5,411 | (1,487) | 9,782 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 470 | (5,303) | 1,321 | (9,572) | ||||
Other comprehensive income (loss), net of taxes | (77) | $ (44) | $ (45) | 108 | $ 51 | $ 51 | (166) | 210 |
Comprehensive income (loss) attributable to Hawaiian Electric Industries, Inc. | 43,384 | 49,872 | 135,603 | 140,518 | ||||
Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income (loss) for common stock | (3,005) | (10,577) | (25,960) | (36,475) | ||||
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net gains recognized during the period in net periodic benefit cost, net of taxes | 126 | (1,500) | 366 | (3,304) | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (117) | 1,499 | (334) | 3,300 | ||||
Other comprehensive income (loss), net of taxes | 9 | (1) | 32 | (4) | ||||
Comprehensive income (loss) attributable to Hawaiian Electric Industries, Inc. | (2,996) | (10,578) | (25,928) | (36,479) | ||||
Hawaiian Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income (loss) for common stock | 43,461 | 49,764 | 135,769 | 140,308 | ||||
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net gains recognized during the period in net periodic benefit cost, net of taxes | (547) | 5,411 | (1,487) | 9,782 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 470 | (5,303) | 1,321 | (9,572) | ||||
Other comprehensive income (loss), net of taxes | (77) | 108 | (166) | 210 | ||||
Comprehensive income (loss) attributable to Hawaiian Electric Industries, Inc. | 43,384 | 49,872 | 135,603 | 140,518 | ||||
Hawaii Electric Light | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income (loss) for common stock | 7,419 | 4,959 | 20,884 | 17,994 | ||||
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net gains recognized during the period in net periodic benefit cost, net of taxes | (55) | 768 | (166) | 1,366 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 54 | (766) | 157 | (1,362) | ||||
Other comprehensive income (loss), net of taxes | (1) | 2 | (9) | 4 | ||||
Comprehensive income (loss) attributable to Hawaiian Electric Industries, Inc. | 7,418 | 4,961 | 20,875 | 17,998 | ||||
Maui Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income (loss) for common stock | (4,414) | 5,618 | 5,076 | 18,481 | ||||
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net gains recognized during the period in net periodic benefit cost, net of taxes | (71) | 732 | (200) | 1,938 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 63 | (733) | 177 | (1,938) | ||||
Other comprehensive income (loss), net of taxes | (8) | (1) | (23) | 0 | ||||
Comprehensive income (loss) attributable to Hawaiian Electric Industries, Inc. | (4,422) | 5,617 | 5,053 | 18,481 | ||||
Other subsidiary | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income (loss) for common stock | 0 | 0 | 0 | 0 | ||||
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net gains recognized during the period in net periodic benefit cost, net of taxes | 0 | 0 | 0 | |||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 0 | 0 | 0 | |||||
Other comprehensive income (loss), net of taxes | 0 | 0 | 0 | 0 | ||||
Comprehensive income (loss) attributable to Hawaiian Electric Industries, Inc. | $ 0 | $ 0 | $ 0 | $ 0 |
Electric utility segment - Co_3
Electric utility segment - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Utility property, plant and equipment | ||||||||
Total property, plant and equipment, net | $ 5,917,342 | $ 5,687,003 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 667,129 | 199,877 | $ 175,280 | |||||
Restricted cash | 15,164 | 5,050 | 3,898 | |||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 99,466 | 115,684 | ||||||
Total assets | 16,991,818 | 16,284,244 | ||||||
Capitalization | ||||||||
Common stock equity | 2,224,354 | $ 2,249,377 | $ 2,237,955 | 2,202,499 | 2,162,922 | $ 2,233,504 | $ 2,303,642 | $ 2,390,884 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 | ||||||
Current liabilities | ||||||||
Short-term borrowings | 0 | 172,568 | ||||||
Interest and dividends payable | 57,901 | 21,333 | ||||||
Deferred credits and other liabilities | ||||||||
Deferred income taxes | 258,942 | 262,462 | ||||||
Total liabilities and shareholders’ equity | 16,991,818 | 16,284,244 | ||||||
Hawaiian Electric Consolidated | ||||||||
Utility property, plant and equipment | ||||||||
Land | 52,098 | 52,060 | ||||||
Plant and equipment | 8,199,828 | 7,979,510 | ||||||
Financing lease right-of-use assets | 124,372 | 48,371 | ||||||
Less accumulated depreciation | (3,222,030) | (3,086,499) | ||||||
Construction in progress | 357,289 | 275,353 | ||||||
Utility property, plant and equipment, net | 5,511,557 | 5,268,795 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 6,942 | 6,945 | ||||||
Total property, plant and equipment, net | 5,518,499 | 5,275,740 | ||||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 274,854 | 39,242 | 21,304 | |||||
Restricted cash | 2,000 | 0 | 0 | |||||
Advances to affiliates | 0 | |||||||
Customer accounts receivable, net | 241,762 | 288,338 | ||||||
Accrued unbilled revenues, net | 179,327 | 183,280 | ||||||
Other accounts receivable, net | 89,823 | 13,567 | ||||||
Fuel oil stock, at average cost | 152,768 | 191,530 | ||||||
Materials and supplies, at average cost | 99,526 | 79,568 | ||||||
Prepayments and other | 54,538 | 33,482 | ||||||
Regulatory assets | 57,921 | 52,273 | ||||||
Total current assets | 1,152,519 | 881,280 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 76,061 | 89,318 | ||||||
Regulatory assets | 173,276 | 190,240 | ||||||
Other | 158,092 | 160,889 | ||||||
Total other long-term assets | 407,429 | 440,447 | ||||||
Total assets | 7,078,447 | 6,597,467 | ||||||
Capitalization | ||||||||
Common stock equity | 2,383,023 | $ 2,371,889 | $ 2,358,884 | 2,344,170 | 2,307,992 | $ 2,289,595 | $ 2,276,884 | 2,261,899 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 | ||||||
Long-term debt, net | 1,934,044 | 1,584,854 | ||||||
Total capitalization | 4,351,360 | 3,963,317 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 17,012 | 19,095 | ||||||
Current portion of long-term debt | 99,996 | 99,962 | ||||||
Accounts payable | 201,699 | 202,492 | ||||||
Interest and dividends payable | 30,058 | 17,176 | ||||||
Taxes accrued, including revenue taxes | 274,272 | 289,902 | ||||||
Regulatory liabilities | 26,325 | 31,475 | ||||||
Other | 163,307 | 85,596 | ||||||
Total current liabilities | 812,669 | 833,665 | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 66,299 | 78,715 | ||||||
Finance lease liabilities | 118,140 | 46,048 | ||||||
Deferred income taxes | 385,675 | 384,430 | ||||||
Regulatory liabilities | 1,075,449 | 1,024,175 | ||||||
Unamortized tax credits | 89,747 | 95,300 | ||||||
Defined benefit pension liability | 48,884 | 49,748 | ||||||
Other | 130,224 | 122,069 | ||||||
Total deferred credits and other liabilities | 1,914,418 | 1,800,485 | ||||||
Total liabilities and shareholders’ equity | 7,078,447 | 6,597,467 | ||||||
Hawaiian Electric Consolidated | Nonrelated Party | ||||||||
Current liabilities | ||||||||
Short-term borrowings | 0 | 87,967 | ||||||
Hawaiian Electric Consolidated | Affiliated Entity | ||||||||
Current liabilities | ||||||||
Short-term borrowings | 0 | |||||||
Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||
Utility property, plant and equipment | ||||||||
Land | 0 | 0 | ||||||
Plant and equipment | 0 | 0 | ||||||
Financing lease right-of-use assets | 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 | (703,311) | (701,833) | ||||||
Current assets | ||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||
Restricted cash | 0 | |||||||
Advances to affiliates | (26,200) | |||||||
Customer accounts receivable, net | 0 | 0 | ||||||
Accrued unbilled revenues, net | 0 | 0 | ||||||
Other accounts receivable, net | (44,577) | (22,384) | ||||||
Fuel oil stock, at average cost | 0 | 0 | ||||||
Materials and supplies, at average cost | 0 | 0 | ||||||
Prepayments and other | 0 | (1,041) | ||||||
Regulatory assets | 0 | 0 | ||||||
Total current assets | (44,577) | (49,625) | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 0 | 0 | ||||||
Regulatory assets | 0 | 0 | ||||||
Other | (16,988) | (16,288) | ||||||
Total other long-term assets | (16,988) | (16,288) | ||||||
Total assets | (764,876) | (767,746) | ||||||
Capitalization | ||||||||
Common stock equity | (703,311) | (701,833) | (689,016) | (676,237) | ||||
Preferred stock of subsidiaries - not subject to mandatory redemption | 0 | 0 | ||||||
Long-term debt, net | 0 | 0 | ||||||
Total capitalization | (703,311) | (701,833) | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 0 | 0 | ||||||
Current portion of long-term debt | 0 | 0 | ||||||
Accounts payable | 0 | 0 | ||||||
Interest and dividends payable | 0 | (80) | ||||||
Taxes accrued, including revenue taxes | 0 | (1,041) | ||||||
Regulatory liabilities | 0 | 0 | ||||||
Other | (44,577) | (22,304) | ||||||
Total current liabilities | (44,577) | (49,625) | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 0 | 0 | ||||||
Finance lease liabilities | 0 | 0 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Regulatory liabilities | 0 | 0 | ||||||
Unamortized tax credits | 0 | 0 | ||||||
Defined benefit pension liability | (16,988) | (16,288) | ||||||
Other | 0 | 0 | ||||||
Total deferred credits and other liabilities | (16,988) | (16,288) | ||||||
Total liabilities and shareholders’ equity | (764,876) | (767,746) | ||||||
Consolidating adjustments | Hawaiian Electric Consolidated | Nonrelated Party | ||||||||
Current liabilities | ||||||||
Short-term borrowings | 0 | |||||||
Consolidating adjustments | Hawaiian Electric Consolidated | Affiliated Entity | ||||||||
Current liabilities | ||||||||
Short-term borrowings | (26,200) | |||||||
Hawaiian Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Utility property, plant and equipment | ||||||||
Land | 42,859 | 42,860 | ||||||
Plant and equipment | 5,422,393 | 5,260,685 | ||||||
Financing lease right-of-use assets | 88,297 | 48,371 | ||||||
Less accumulated depreciation | (1,953,609) | (1,855,150) | ||||||
Construction in progress | 258,204 | 215,560 | ||||||
Utility property, plant and equipment, net | 3,858,144 | 3,712,326 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 5,295 | 5,298 | ||||||
Total property, plant and equipment, net | 3,863,439 | 3,717,624 | ||||||
Investment in wholly owned subsidiaries, at equity | 703,311 | 701,833 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 233,518 | 27,579 | 13,295 | |||||
Restricted cash | 2,000 | |||||||
Advances to affiliates | 0 | |||||||
Customer accounts receivable, net | 172,730 | 216,802 | ||||||
Accrued unbilled revenues, net | 132,552 | 136,508 | ||||||
Other accounts receivable, net | 115,498 | 23,746 | ||||||
Fuel oil stock, at average cost | 112,468 | 153,342 | ||||||
Materials and supplies, at average cost | 58,834 | 48,130 | ||||||
Prepayments and other | 41,304 | 24,040 | ||||||
Regulatory assets | 49,489 | 46,504 | ||||||
Total current assets | 918,393 | 676,651 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 36,627 | 42,752 | ||||||
Regulatory assets | 146,735 | 154,040 | ||||||
Other | 112,601 | 115,028 | ||||||
Total other long-term assets | 295,963 | 311,820 | ||||||
Total assets | 5,781,106 | 5,407,928 | ||||||
Capitalization | ||||||||
Common stock equity | 2,383,023 | 2,344,170 | 2,307,992 | 2,261,899 | ||||
Preferred stock of subsidiaries - not subject to mandatory redemption | 22,293 | 22,293 | ||||||
Long-term debt, net | 1,426,353 | 1,126,915 | ||||||
Total capitalization | 3,831,669 | 3,493,378 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 7,308 | 9,775 | ||||||
Current portion of long-term debt | 49,998 | 49,981 | ||||||
Accounts payable | 141,738 | 143,253 | ||||||
Interest and dividends payable | 21,304 | 12,398 | ||||||
Taxes accrued, including revenue taxes | 196,037 | 207,798 | ||||||
Regulatory liabilities | 9,999 | 13,145 | ||||||
Other | 148,400 | 64,659 | ||||||
Total current liabilities | 574,784 | 615,176 | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 35,967 | 41,049 | ||||||
Finance lease liabilities | 82,935 | 46,048 | ||||||
Deferred income taxes | 274,577 | 271,234 | ||||||
Regulatory liabilities | 770,268 | 729,683 | ||||||
Unamortized tax credits | 65,153 | 69,614 | ||||||
Defined benefit pension liability | 65,872 | 65,907 | ||||||
Other | 79,881 | 75,839 | ||||||
Total deferred credits and other liabilities | 1,374,653 | 1,299,374 | ||||||
Total liabilities and shareholders’ equity | 5,781,106 | 5,407,928 | ||||||
Hawaiian Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | Nonrelated Party | ||||||||
Current liabilities | ||||||||
Short-term borrowings | 87,967 | |||||||
Hawaiian Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | Affiliated Entity | ||||||||
Current liabilities | ||||||||
Short-term borrowings | 26,200 | |||||||
Hawaii Electric Light | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Utility property, plant and equipment | ||||||||
Land | 5,645 | 5,606 | ||||||
Plant and equipment | 1,448,183 | 1,425,442 | ||||||
Financing lease right-of-use assets | 36,075 | 0 | ||||||
Less accumulated depreciation | (663,303) | (644,457) | ||||||
Construction in progress | 35,281 | 23,989 | ||||||
Utility property, plant and equipment, net | 861,881 | 810,580 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 115 | 115 | ||||||
Total property, plant and equipment, net | 861,996 | 810,695 | ||||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 32,716 | 5,092 | 5,154 | |||||
Restricted cash | 0 | |||||||
Advances to affiliates | 4,500 | |||||||
Customer accounts receivable, net | 34,550 | 39,339 | ||||||
Accrued unbilled revenues, net | 22,062 | 23,839 | ||||||
Other accounts receivable, net | 7,124 | 5,519 | ||||||
Fuel oil stock, at average cost | 14,400 | 16,964 | ||||||
Materials and supplies, at average cost | 13,077 | 9,783 | ||||||
Prepayments and other | 5,468 | 6,346 | ||||||
Regulatory assets | 5,110 | 2,435 | ||||||
Total current assets | 134,507 | 113,817 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 29,193 | 34,283 | ||||||
Regulatory assets | 14,583 | 21,816 | ||||||
Other | 33,011 | 32,654 | ||||||
Total other long-term assets | 76,787 | 88,753 | ||||||
Total assets | 1,073,290 | 1,013,265 | ||||||
Capitalization | ||||||||
Common stock equity | 352,170 | 344,720 | 338,598 | 332,900 | ||||
Preferred stock of subsidiaries - not subject to mandatory redemption | 7,000 | 7,000 | ||||||
Long-term debt, net | 249,308 | 224,439 | ||||||
Total capitalization | 608,478 | 576,159 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 6,942 | 6,690 | ||||||
Current portion of long-term debt | 19,999 | 19,992 | ||||||
Accounts payable | 25,436 | 32,113 | ||||||
Interest and dividends payable | 3,924 | 2,576 | ||||||
Taxes accrued, including revenue taxes | 40,706 | 42,436 | ||||||
Regulatory liabilities | 6,842 | 8,553 | ||||||
Other | 23,182 | 20,856 | ||||||
Total current liabilities | 127,031 | 133,216 | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 22,575 | 27,817 | ||||||
Finance lease liabilities | 35,205 | 0 | ||||||
Deferred income taxes | 50,405 | 50,615 | ||||||
Regulatory liabilities | 197,045 | 194,222 | ||||||
Unamortized tax credits | 12,410 | 13,150 | ||||||
Defined benefit pension liability | 0 | 129 | ||||||
Other | 20,141 | 17,957 | ||||||
Total deferred credits and other liabilities | 337,781 | 303,890 | ||||||
Total liabilities and shareholders’ equity | 1,073,290 | 1,013,265 | ||||||
Hawaii Electric Light | Reportable Legal Entities | Hawaiian Electric Consolidated | Nonrelated Party | ||||||||
Current liabilities | ||||||||
Short-term borrowings | 0 | |||||||
Hawaii Electric Light | Reportable Legal Entities | Hawaiian Electric Consolidated | Affiliated Entity | ||||||||
Current liabilities | ||||||||
Short-term borrowings | 0 | |||||||
Maui Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Utility property, plant and equipment | ||||||||
Land | 3,594 | 3,594 | ||||||
Plant and equipment | 1,329,252 | 1,293,383 | ||||||
Financing lease right-of-use assets | 0 | 0 | ||||||
Less accumulated depreciation | (605,118) | (586,892) | ||||||
Construction in progress | 63,804 | 35,804 | ||||||
Utility property, plant and equipment, net | 791,532 | 745,889 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 1,532 | 1,532 | ||||||
Total property, plant and equipment, net | 793,064 | 747,421 | ||||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 8,543 | 6,494 | 2,778 | |||||
Restricted cash | 0 | |||||||
Advances to affiliates | 21,700 | |||||||
Customer accounts receivable, net | 34,482 | 32,197 | ||||||
Accrued unbilled revenues, net | 24,713 | 22,933 | ||||||
Other accounts receivable, net | 11,778 | 6,686 | ||||||
Fuel oil stock, at average cost | 25,900 | 21,224 | ||||||
Materials and supplies, at average cost | 27,615 | 21,655 | ||||||
Prepayments and other | 7,766 | 4,137 | ||||||
Regulatory assets | 3,322 | 3,334 | ||||||
Total current assets | 144,119 | 140,360 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 10,241 | 12,283 | ||||||
Regulatory assets | 11,958 | 14,384 | ||||||
Other | 29,468 | 29,495 | ||||||
Total other long-term assets | 51,667 | 56,162 | ||||||
Total assets | 988,850 | 943,943 | ||||||
Capitalization | ||||||||
Common stock equity | 351,064 | 357,036 | 350,341 | 343,260 | ||||
Preferred stock of subsidiaries - not subject to mandatory redemption | 5,000 | 5,000 | ||||||
Long-term debt, net | 258,383 | 233,500 | ||||||
Total capitalization | 614,447 | 595,536 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 2,762 | 2,630 | ||||||
Current portion of long-term debt | 29,999 | 29,989 | ||||||
Accounts payable | 34,525 | 27,126 | ||||||
Interest and dividends payable | 4,830 | 2,282 | ||||||
Taxes accrued, including revenue taxes | 37,529 | 40,709 | ||||||
Regulatory liabilities | 9,484 | 9,777 | ||||||
Other | 36,302 | 22,385 | ||||||
Total current liabilities | 155,431 | 134,898 | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 7,757 | 9,849 | ||||||
Finance lease liabilities | 0 | 0 | ||||||
Deferred income taxes | 60,693 | 62,581 | ||||||
Regulatory liabilities | 108,136 | 100,270 | ||||||
Unamortized tax credits | 12,184 | 12,536 | ||||||
Defined benefit pension liability | 0 | 0 | ||||||
Other | 30,202 | 28,273 | ||||||
Total deferred credits and other liabilities | 218,972 | 213,509 | ||||||
Total liabilities and shareholders’ equity | 988,850 | 943,943 | ||||||
Maui Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | Nonrelated Party | ||||||||
Current liabilities | ||||||||
Short-term borrowings | 0 | |||||||
Maui Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | Affiliated Entity | ||||||||
Current liabilities | ||||||||
Short-term borrowings | 0 | |||||||
Other subsidiary | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Utility property, plant and equipment | ||||||||
Land | 0 | 0 | ||||||
Plant and equipment | 0 | 0 | ||||||
Financing lease right-of-use assets | 0 | 0 | ||||||
Less accumulated depreciation | 0 | 0 | ||||||
Construction in progress | 0 | 0 | ||||||
Utility property, plant and equipment, net | 0 | 0 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 0 | 0 | ||||||
Total property, plant and equipment, net | 0 | 0 | ||||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 77 | 77 | 77 | |||||
Restricted cash | 0 | |||||||
Advances to affiliates | 0 | |||||||
Customer accounts receivable, net | 0 | 0 | ||||||
Accrued unbilled revenues, net | 0 | 0 | ||||||
Other accounts receivable, net | 0 | 0 | ||||||
Fuel oil stock, at average cost | 0 | 0 | ||||||
Materials and supplies, at average cost | 0 | 0 | ||||||
Prepayments and other | 0 | 0 | ||||||
Regulatory assets | 0 | 0 | ||||||
Total current assets | 77 | 77 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 0 | 0 | ||||||
Regulatory assets | 0 | 0 | ||||||
Other | 0 | 0 | ||||||
Total other long-term assets | 0 | 0 | ||||||
Total assets | 77 | 77 | ||||||
Capitalization | ||||||||
Common stock equity | 77 | 77 | $ 77 | $ 77 | ||||
Preferred stock of subsidiaries - not subject to mandatory redemption | 0 | 0 | ||||||
Long-term debt, net | 0 | 0 | ||||||
Total capitalization | 77 | 77 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 0 | 0 | ||||||
Current portion of long-term debt | 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 | ||||||
Finance lease liabilities | 0 | 0 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Regulatory liabilities | 0 | 0 | ||||||
Unamortized tax credits | 0 | 0 | ||||||
Defined benefit pension liability | 0 | 0 | ||||||
Other | 0 | 0 | ||||||
Total deferred credits and other liabilities | 0 | 0 | ||||||
Total liabilities and shareholders’ equity | $ 77 | 77 | ||||||
Other subsidiary | Reportable Legal Entities | Hawaiian Electric Consolidated | Nonrelated Party | ||||||||
Current liabilities | ||||||||
Short-term borrowings | 0 | |||||||
Other subsidiary | Reportable Legal Entities | Hawaiian Electric Consolidated | Affiliated Entity | ||||||||
Current liabilities | ||||||||
Short-term borrowings | $ 0 |
Electric utility segment - Co_4
Electric utility segment - Condensed Consolidating Statement of Changes in Common Stock Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Increase (decrease) in stockholders' equity | ||||||||
Beginning balance | $ 2,249,377 | $ 2,237,955 | $ 2,202,499 | $ 2,233,504 | $ 2,303,642 | $ 2,390,884 | $ 2,202,499 | $ 2,390,884 |
Net income for common stock | 41,118 | 54,610 | 54,721 | 62,082 | 52,541 | 69,167 | 150,449 | 183,790 |
Other comprehensive loss, net of taxes | (34,875) | (7,609) | 20,488 | (96,012) | (87,840) | (117,159) | (21,996) | (301,011) |
Common stock dividends | (39,455) | (39,447) | (39,446) | (38,315) | (38,301) | (38,301) | ||
Ending balance | 2,224,354 | 2,249,377 | 2,237,955 | 2,162,922 | 2,233,504 | 2,303,642 | 2,224,354 | 2,162,922 |
Hawaiian Electric Consolidated | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning balance | 2,371,889 | 2,358,884 | 2,344,170 | 2,289,595 | 2,276,884 | 2,261,899 | 2,344,170 | 2,261,899 |
Net income for common stock | 43,461 | 45,299 | 47,009 | 49,764 | 44,135 | 46,409 | 135,769 | 140,308 |
Other comprehensive loss, net of taxes | (77) | (44) | (45) | 108 | 51 | 51 | (166) | 210 |
Common stock dividends | (32,250) | (32,250) | (32,250) | (31,475) | (31,475) | (31,475) | (96,750) | (94,425) |
Ending balance | 2,383,023 | $ 2,371,889 | 2,358,884 | 2,307,992 | $ 2,289,595 | 2,276,884 | 2,383,023 | 2,307,992 |
Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning balance | (701,833) | (676,237) | (701,833) | (676,237) | ||||
Net income for common stock | (3,005) | (10,577) | (25,960) | (36,475) | ||||
Other comprehensive loss, net of taxes | 9 | (1) | 32 | (4) | ||||
Common stock dividends | 24,450 | 23,700 | ||||||
Ending balance | (703,311) | (689,016) | (703,311) | (689,016) | ||||
Hawaiian Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning balance | 2,344,170 | 2,261,899 | 2,344,170 | 2,261,899 | ||||
Net income for common stock | 43,461 | 49,764 | 135,769 | 140,308 | ||||
Other comprehensive loss, net of taxes | (77) | 108 | (166) | 210 | ||||
Common stock dividends | (96,750) | (94,425) | ||||||
Ending balance | 2,383,023 | 2,307,992 | 2,383,023 | 2,307,992 | ||||
Hawaii Electric Light | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning balance | 344,720 | 332,900 | 344,720 | 332,900 | ||||
Net income for common stock | 7,419 | 4,959 | 20,884 | 17,994 | ||||
Other comprehensive loss, net of taxes | (1) | 2 | (9) | 4 | ||||
Common stock dividends | (13,425) | (12,300) | ||||||
Ending balance | 352,170 | 338,598 | 352,170 | 338,598 | ||||
Maui Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning balance | 357,036 | 343,260 | 357,036 | 343,260 | ||||
Net income for common stock | (4,414) | 5,618 | 5,076 | 18,481 | ||||
Other comprehensive loss, net of taxes | (8) | (1) | (23) | 0 | ||||
Common stock dividends | (11,025) | (11,400) | ||||||
Ending balance | 351,064 | 350,341 | 351,064 | 350,341 | ||||
Other subsidiary | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning balance | $ 77 | $ 77 | 77 | 77 | ||||
Net income for common stock | 0 | 0 | 0 | 0 | ||||
Other comprehensive loss, net of taxes | 0 | 0 | 0 | 0 | ||||
Ending balance | $ 77 | $ 77 | $ 77 | $ 77 |
Electric utility segment - Co_5
Electric utility segment - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Cash flows from operating activities | |||
Net cash provided by operating activities | $ 475,138 | $ 212,987 | |
Cash flows from investing activities | |||
Capital expenditures | (342,364) | (236,278) | |
Other | 9,375 | 15,646 | |
Net cash used in investing activities | (369,638) | (794,762) | |
Cash flows from financing activities | |||
Common stock dividends | (112,957) | (114,917) | |
Proceeds from issuance of long-term debt | 625,000 | 67,312 | |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (137,650) | 117,127 | |
Other | (9,409) | (6,112) | |
Net cash provided by financing activities | 371,866 | 449,491 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 477,366 | (132,284) | |
Cash, cash equivalents and restricted cash, beginning of period | 204,927 | 311,462 | |
Cash, cash equivalents and restricted cash, end of period | 682,293 | 179,178 | |
Less: Restricted cash | (15,164) | (3,898) | $ (5,050) |
Cash and cash equivalents | 667,129 | 175,280 | 199,877 |
Hawaiian Electric Consolidated | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 406,111 | 124,167 | |
Cash flows from investing activities | |||
Capital expenditures | (334,497) | (225,876) | |
Advances from (to) affiliates | 0 | 0 | |
Other | 5,216 | 6,750 | |
Net cash used in investing activities | (329,281) | (219,126) | |
Cash flows from financing activities | |||
Common stock dividends | (96,750) | (94,425) | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,496) | (1,496) | |
Proceeds from issuance of long-term debt | 350,000 | 60,000 | |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (87,967) | 97,450 | |
Payments of obligations under finance leases | (2,162) | (266) | |
Other | (843) | (258) | |
Net cash provided by financing activities | 160,782 | 61,005 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 237,612 | (33,954) | |
Cash, cash equivalents and restricted cash, beginning of period | 39,242 | 55,258 | |
Cash, cash equivalents and restricted cash, end of period | 276,854 | 21,304 | |
Less: Restricted cash | (2,000) | 0 | 0 |
Cash and cash equivalents | 274,854 | 21,304 | 39,242 |
Consolidating adjustments | Hawaiian Electric Consolidated | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | (24,450) | (23,700) | |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | |
Advances from (to) affiliates | (26,200) | 16,500 | |
Other | 0 | 0 | |
Net cash used in investing activities | (26,200) | 16,500 | |
Cash flows from financing activities | |||
Common stock dividends | 24,450 | 23,700 | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | |
Proceeds from issuance of long-term debt | 0 | 0 | |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | 26,200 | (16,500) | |
Payments of obligations under finance leases | 0 | ||
Other | 0 | 0 | |
Net cash provided by financing activities | 50,650 | 7,200 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 | |
Cash, cash equivalents and restricted cash, end of period | 0 | ||
Less: Restricted cash | 0 | ||
Cash and cash equivalents | 0 | 0 | 0 |
Hawaiian Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 336,248 | 74,053 | |
Cash flows from investing activities | |||
Capital expenditures | (217,276) | (152,015) | |
Advances from (to) affiliates | 0 | 1,000 | |
Other | 3,179 | 4,545 | |
Net cash used in investing activities | (214,097) | (146,470) | |
Cash flows from financing activities | |||
Common stock dividends | (96,750) | (94,425) | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (810) | (810) | |
Proceeds from issuance of long-term debt | 300,000 | 40,000 | |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (114,167) | 114,950 | |
Payments of obligations under finance leases | (1,914) | (266) | |
Other | (571) | (170) | |
Net cash provided by financing activities | 85,788 | 59,279 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 207,939 | (13,138) | |
Cash, cash equivalents and restricted cash, beginning of period | 27,579 | 26,433 | |
Cash, cash equivalents and restricted cash, end of period | 235,518 | ||
Less: Restricted cash | (2,000) | ||
Cash and cash equivalents | 233,518 | 13,295 | 27,579 |
Hawaii Electric Light | Reportable Legal Entities | Hawaiian Electric Consolidated | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 59,029 | 38,302 | |
Cash flows from investing activities | |||
Capital expenditures | (47,609) | (34,055) | |
Advances from (to) affiliates | 4,500 | (1,500) | |
Other | 912 | 825 | |
Net cash used in investing activities | (42,197) | (34,730) | |
Cash flows from financing activities | |||
Common stock dividends | (13,425) | (12,300) | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (400) | (400) | |
Proceeds from issuance of long-term debt | 25,000 | 10,000 | |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | 0 | (1,000) | |
Payments of obligations under finance leases | (248) | 0 | |
Other | (135) | (44) | |
Net cash provided by financing activities | 10,792 | (3,744) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 27,624 | (172) | |
Cash, cash equivalents and restricted cash, beginning of period | 5,092 | 5,326 | |
Cash, cash equivalents and restricted cash, end of period | 32,716 | ||
Less: Restricted cash | 0 | ||
Cash and cash equivalents | 32,716 | 5,154 | 5,092 |
Maui Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 35,284 | 35,512 | |
Cash flows from investing activities | |||
Capital expenditures | (69,612) | (39,806) | |
Advances from (to) affiliates | 21,700 | (16,000) | |
Other | 1,125 | 1,380 | |
Net cash used in investing activities | (46,787) | (54,426) | |
Cash flows from financing activities | |||
Common stock dividends | (11,025) | (11,400) | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (286) | (286) | |
Proceeds from issuance of long-term debt | 25,000 | 10,000 | |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | 0 | 0 | |
Payments of obligations under finance leases | 0 | 0 | |
Other | (137) | (44) | |
Net cash provided by financing activities | 13,552 | (1,730) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 2,049 | (20,644) | |
Cash, cash equivalents and restricted cash, beginning of period | 6,494 | 23,422 | |
Cash, cash equivalents and restricted cash, end of period | 8,543 | ||
Less: Restricted cash | 0 | ||
Cash and cash equivalents | 8,543 | 2,778 | 6,494 |
Other subsidiary | Reportable Legal Entities | Hawaiian Electric Consolidated | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 0 | 0 | |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | |
Advances from (to) affiliates | 0 | 0 | |
Other | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | |
Cash flows from financing activities | |||
Common stock dividends | 0 | 0 | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | |
Proceeds from issuance of long-term debt | 0 | 0 | |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | 0 | 0 | |
Payments of obligations under finance leases | 0 | ||
Other | 0 | 0 | |
Net cash provided by financing activities | 0 | 0 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | |
Cash, cash equivalents and restricted cash, beginning of period | 77 | 77 | |
Cash, cash equivalents and restricted cash, end of period | 77 | ||
Less: Restricted cash | 0 | ||
Cash and cash equivalents | $ 77 | $ 77 | $ 77 |
Bank segment - Income Statement
Bank segment - Income Statement Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Noninterest income | ||||||||
Noninterest income | $ 822,044 | $ 990,338 | $ 2,435,416 | $ 2,527,153 | ||||
Noninterest expense | ||||||||
Income (loss) before income taxes | 49,110 | 79,905 | 188,781 | 233,602 | ||||
Income taxes | 7,521 | 17,352 | 36,915 | 48,395 | ||||
Net income (loss) | 41,589 | 62,553 | 151,866 | 185,207 | ||||
Other comprehensive (loss) income, net of tax benefits | (34,875) | $ (7,609) | $ 20,488 | (96,012) | $ (87,840) | $ (117,159) | (21,996) | (301,011) |
Comprehensive income (loss) attributable to Hawaiian Electric Industries, Inc. | 6,243 | (33,930) | 128,453 | (117,221) | ||||
American Savings Bank (ASB) | ||||||||
Interest and dividend income | ||||||||
Interest and fees on loans | 71,540 | 53,365 | 204,348 | 147,499 | ||||
Interest and dividends on investment securities | 14,096 | 15,052 | 42,508 | 43,729 | ||||
Interest and dividend income | 85,636 | 68,417 | 246,856 | 191,228 | ||||
Interest expense | ||||||||
Interest on deposit liabilities | 14,446 | 1,704 | 30,944 | 3,572 | ||||
Interest on other borrowings | 8,598 | 1,055 | 25,171 | 1,199 | ||||
Total interest expense | 23,044 | 2,759 | 56,115 | 4,771 | ||||
Net interest income | 62,592 | 65,658 | 190,741 | 186,457 | ||||
Provision for credit losses | 8,835 | (186) | 10,053 | (692) | ||||
Net interest income after provision for credit losses | 53,757 | 65,844 | 180,688 | 187,149 | ||||
Noninterest income | ||||||||
Gain on sale of real estate | 0 | 0 | 495 | 1,002 | ||||
Total noninterest income | 15,338 | 12,994 | 45,355 | 41,624 | ||||
Noninterest expense | ||||||||
Compensation and employee benefits | 29,902 | 28,597 | 89,500 | 83,478 | ||||
Occupancy | 5,154 | 5,577 | 16,281 | 16,996 | ||||
Data processing | 5,133 | 4,509 | 15,240 | 13,144 | ||||
Services | 3,627 | 2,751 | 8,911 | 7,712 | ||||
Equipment | 3,125 | 2,432 | 8,728 | 7,163 | ||||
Office supplies, printing and postage | 1,022 | 1,123 | 3,296 | 3,256 | ||||
Marketing | 984 | 925 | 2,834 | 2,877 | ||||
Other expense | 7,399 | 5,643 | 19,742 | 14,542 | ||||
Noninterest expense | 56,346 | 51,557 | 164,532 | 149,168 | ||||
Income (loss) before income taxes | 12,749 | 27,281 | 61,511 | 79,605 | ||||
Income taxes | 1,384 | 6,525 | 11,380 | 17,513 | ||||
Net income (loss) | 11,365 | 20,756 | 50,131 | 62,092 | ||||
Other comprehensive (loss) income, net of tax benefits | (34,231) | (98,942) | (23,011) | (310,218) | ||||
Comprehensive income (loss) attributable to Hawaiian Electric Industries, Inc. | (22,866) | (78,186) | 27,120 | (248,126) | ||||
American Savings Bank (ASB) | Fees from other financial services | ||||||||
Noninterest income | ||||||||
Noninterest income | 4,703 | 4,763 | 14,391 | 15,066 | ||||
American Savings Bank (ASB) | Fee income on deposit liabilities | ||||||||
Noninterest income | ||||||||
Noninterest income | 4,924 | 4,879 | 14,027 | 14,122 | ||||
American Savings Bank (ASB) | Fee income on other financial products | ||||||||
Noninterest income | ||||||||
Noninterest income | 2,440 | 2,416 | 7,952 | 7,663 | ||||
American Savings Bank (ASB) | Bank-owned life insurance | ||||||||
Noninterest income | ||||||||
Noninterest income | 2,303 | 122 | 5,683 | 661 | ||||
American Savings Bank (ASB) | Mortgage banking income | ||||||||
Noninterest income | ||||||||
Noninterest income | 341 | 181 | 701 | 1,630 | ||||
American Savings Bank (ASB) | Other income, net | ||||||||
Noninterest income | ||||||||
Noninterest income | $ 627 | $ 633 | $ 2,106 | $ 1,480 |
Bank segment - Reconciliation o
Bank segment - Reconciliation of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | $ 901,873 | $ 1,042,197 | $ 2,725,795 | $ 2,722,872 |
Less / Add back: Retirement defined benefits credit—other than service costs | (1,256) | (1,039) | (3,561) | (3,528) |
Total expenses | 826,762 | 940,082 | 2,464,187 | 2,434,813 |
Operating income - bank | 75,111 | 102,115 | 261,608 | 288,059 |
Income before income taxes | 49,110 | 79,905 | 188,781 | 233,602 |
American Savings Bank (ASB) | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Interest and dividend income | 85,636 | 68,417 | 246,856 | 191,228 |
Noninterest income | 15,338 | 12,994 | 45,355 | 41,624 |
Less: Gain on sale of real estate | 0 | 0 | 495 | 1,002 |
Revenues | 100,974 | 81,411 | 291,716 | 231,850 |
Total interest expense | 23,044 | 2,759 | 56,115 | 4,771 |
Provision for credit losses | 8,835 | (186) | 10,053 | (692) |
Noninterest expense | 56,346 | 51,557 | 164,532 | 149,168 |
Less / Add back: Retirement defined benefits credit—other than service costs | (190) | (181) | (564) | (552) |
Total expenses | 88,415 | 54,311 | 230,769 | 152,797 |
Operating income - bank | 12,559 | 27,100 | 60,947 | 79,053 |
Income before income taxes | $ 12,749 | $ 27,281 | $ 61,511 | $ 79,605 |
Bank segment - Balance Sheets D
Bank segment - Balance Sheets Data (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||||||||
Cash and cash equivalents | $ 667,129 | $ 199,877 | $ 175,280 | |||||
Investment securities | ||||||||
Available-for-sale investment securities, at fair value | 1,266,412 | 1,429,667 | ||||||
Held-to-maturity, at amortized cost (fair value of $1,052,221 and $1,150,971, respectively) | 1,212,005 | 1,251,747 | ||||||
Held-to-maturity investment securities | 1,052,221 | |||||||
Stock in Federal Home Loan Bank, at cost | 18,000 | 26,560 | ||||||
Allowance for credit losses | (76,366) | $ (69,068) | (72,216) | (70,406) | $ (69,456) | $ (71,130) | ||
Loans held for investment, net | 6,114,640 | 5,906,690 | ||||||
Loans held for sale, at lower of cost or fair value | 2,171 | 824 | ||||||
Other assets | 826,020 | 824,536 | ||||||
Goodwill | 82,190 | 82,190 | ||||||
Total assets | 16,991,818 | 16,284,244 | ||||||
Liabilities and shareholder’s equity | ||||||||
Other | 837,506 | 787,057 | ||||||
Total liabilities | 14,733,171 | 14,047,452 | ||||||
Retained earnings | 877,931 | 845,830 | ||||||
Accumulated other comprehensive loss, net of tax benefits | ||||||||
Accumulated other comprehensive loss, net of tax benefits | (358,024) | (336,028) | ||||||
Common stock equity | 2,224,354 | $ 2,249,377 | $ 2,237,955 | 2,202,499 | $ 2,162,922 | $ 2,233,504 | $ 2,303,642 | $ 2,390,884 |
Total liabilities and shareholders’ equity | 16,991,818 | 16,284,244 | ||||||
Other assets | ||||||||
Premises and equipment, net | 5,917,342 | 5,687,003 | ||||||
Other assets | 826,020 | 824,536 | ||||||
Other liabilities | ||||||||
Other liabilities | 837,506 | 787,057 | ||||||
American Savings Bank (ASB) | ||||||||
Assets | ||||||||
Cash and due from banks | 139,059 | 153,042 | ||||||
Interest-bearing deposits | 124,531 | 3,107 | ||||||
Cash and cash equivalents | 263,590 | 156,149 | ||||||
Investment securities | ||||||||
Available-for-sale investment securities, at fair value | 1,266,412 | 1,429,667 | ||||||
Held-to-maturity, at amortized cost (fair value of $1,052,221 and $1,150,971, respectively) | 1,212,005 | 1,251,747 | ||||||
Held-to-maturity investment securities | 1,052,221 | 1,150,971 | ||||||
Stock in Federal Home Loan Bank, at cost | 18,000 | 26,560 | ||||||
Loans held for investment | 6,191,006 | 5,978,906 | ||||||
Allowance for credit losses | (76,366) | (72,216) | ||||||
Loans held for investment, net | 6,114,640 | 5,906,690 | ||||||
Loans held for sale, at lower of cost or fair value | 2,171 | 824 | ||||||
Other assets | 698,420 | 692,143 | ||||||
Goodwill | 82,190 | 82,190 | ||||||
Total assets | 9,657,428 | 9,545,970 | ||||||
Liabilities and shareholder’s equity | ||||||||
Deposit liabilities—noninterest-bearing | 2,573,010 | 2,811,077 | ||||||
Deposit liabilities—interest-bearing | 5,651,341 | 5,358,619 | ||||||
Other borrowings | 750,000 | 695,120 | ||||||
Other | 224,136 | 212,269 | ||||||
Total liabilities | 9,198,487 | 9,077,085 | ||||||
Common stock | 1 | 1 | ||||||
Additional paid-in capital | 357,742 | 355,806 | ||||||
Retained earnings | 460,824 | 449,693 | ||||||
Accumulated other comprehensive loss, net of tax benefits | ||||||||
Net unrealized losses on securities | (350,234) | (328,904) | ||||||
Retirement benefit plans | (9,392) | (7,711) | ||||||
Accumulated other comprehensive loss, net of tax benefits | (359,626) | (336,615) | ||||||
Common stock equity | 458,941 | 468,885 | ||||||
Total liabilities and shareholders’ equity | 9,657,428 | 9,545,970 | ||||||
Other assets | ||||||||
Bank-owned life insurance | 186,143 | 182,986 | ||||||
Premises and equipment, net | 189,950 | 195,324 | ||||||
Accrued interest receivable | 29,361 | 25,077 | ||||||
Mortgage-servicing rights | 8,376 | 9,047 | ||||||
Low-income housing investments | 103,580 | 106,978 | ||||||
Deferred tax asset | 127,735 | 116,441 | ||||||
Real estate acquired in settlement of loans, net | 0 | 115 | ||||||
Other | 53,275 | 56,175 | ||||||
Other assets | 698,420 | 692,143 | ||||||
Other liabilities | ||||||||
Accrued expenses | 102,540 | 97,295 | ||||||
Federal and state income taxes payable | 845 | 863 | ||||||
Cashier’s checks | 38,483 | 36,401 | ||||||
Advance payments by borrowers | 4,289 | 9,637 | ||||||
Other | 77,979 | 68,073 | ||||||
Other liabilities | $ 224,136 | $ 212,269 |
Bank segment - Components of In
Bank segment - Components of Investment Securities (Details) $ in Thousands | Sep. 30, 2023 USD ($) issue | Dec. 31, 2022 USD ($) issue |
Available-for-sale | ||
Amortized cost | $ 1,559,205 | |
Available-for-sale investment securities, at fair value | 1,266,412 | $ 1,429,667 |
Held-to-maturity | ||
Held-to-maturity investment securities, at amortized cost | 1,212,005 | 1,251,747 |
Held-to-maturity investment securities | 1,052,221 | |
American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 1,559,205 | 1,678,205 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (292,793) | (248,538) |
Available-for-sale investment securities, at fair value | $ 1,266,412 | $ 1,429,667 |
Gross unrealized losses, less than 12 months, number of issues | issue | 5 | 129 |
Gross unrealized losses, less than 12 months, fair value | $ 12,650 | $ 526,681 |
Gross unrealized losses, less than 12 months, amount | $ (3,432) | $ (61,147) |
Gross unrealized losses, 12 months or longer, number of issues | issue | 195 | 75 |
Gross unrealized losses, 12 months or longer, fair value | $ 1,239,268 | $ 888,084 |
Gross unrealized losses, 12 months or more, amount | (289,361) | (187,391) |
Held-to-maturity | ||
Held-to-maturity investment securities, at amortized cost | 1,212,005 | 1,251,747 |
Gross unrealized gains | 0 | 2,670 |
Gross unrealized losses | (159,784) | (103,446) |
Held-to-maturity investment securities | $ 1,052,221 | $ 1,150,971 |
Less than 12 months, number of issues | issue | 62 | 23 |
Less than 12 months, fair value | $ 612,587 | $ 200,503 |
Less than 12 months, amount | $ (42,892) | $ (13,815) |
12 months or longer, number of issues | issue | 44 | 53 |
12 months or longer: fair value | $ 439,634 | $ 601,792 |
12 months or longer, amount | (116,892) | (89,631) |
U.S. Treasury and federal agency obligations | American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 82,252 | 88,344 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (7,252) | (7,281) |
Available-for-sale investment securities, at fair value | $ 75,000 | $ 81,063 |
Gross unrealized losses, less than 12 months, number of issues | issue | 0 | 12 |
Gross unrealized losses, less than 12 months, fair value | $ 0 | $ 41,201 |
Gross unrealized losses, less than 12 months, amount | $ 0 | $ (2,120) |
Gross unrealized losses, 12 months or longer, number of issues | issue | 14 | 4 |
Gross unrealized losses, 12 months or longer, fair value | $ 75,000 | $ 39,862 |
Gross unrealized losses, 12 months or more, amount | (7,252) | (5,161) |
Held-to-maturity | ||
Held-to-maturity investment securities, at amortized cost | 59,912 | 59,894 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (9,541) | (8,478) |
Held-to-maturity investment securities | $ 50,371 | $ 51,416 |
Less than 12 months, number of issues | issue | 0 | 1 |
Less than 12 months, fair value | $ 0 | $ 16,874 |
Less than 12 months, amount | $ 0 | $ (3,222) |
12 months or longer, number of issues | issue | 3 | 2 |
12 months or longer: fair value | $ 50,371 | $ 34,542 |
12 months or longer, amount | (9,541) | (5,256) |
Mortgage-backed securities | American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 1,427,186 | 1,530,582 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (282,019) | (237,614) |
Available-for-sale investment securities, at fair value | $ 1,145,167 | $ 1,292,968 |
Gross unrealized losses, less than 12 months, number of issues | issue | 5 | 113 |
Gross unrealized losses, less than 12 months, fair value | $ 12,650 | $ 455,836 |
Gross unrealized losses, less than 12 months, amount | $ (3,432) | $ (56,999) |
Gross unrealized losses, 12 months or longer, number of issues | issue | 178 | 70 |
Gross unrealized losses, 12 months or longer, fair value | $ 1,132,517 | $ 837,132 |
Gross unrealized losses, 12 months or more, amount | (278,587) | (180,615) |
Held-to-maturity | ||
Held-to-maturity investment securities, at amortized cost | 1,152,093 | 1,191,853 |
Gross unrealized gains | 0 | 2,670 |
Gross unrealized losses | (150,243) | (94,968) |
Held-to-maturity investment securities | $ 1,001,850 | $ 1,099,555 |
Less than 12 months, number of issues | issue | 62 | 22 |
Less than 12 months, fair value | $ 612,587 | $ 183,629 |
Less than 12 months, amount | $ (42,892) | $ (10,593) |
12 months or longer, number of issues | issue | 41 | 51 |
12 months or longer: fair value | $ 389,263 | $ 567,250 |
12 months or longer, amount | (107,351) | (84,375) |
Corporate bonds | American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 35,273 | 44,377 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (3,522) | (3,643) |
Available-for-sale investment securities, at fair value | $ 31,751 | $ 40,734 |
Gross unrealized losses, less than 12 months, number of issues | issue | 0 | 4 |
Gross unrealized losses, less than 12 months, fair value | $ 0 | $ 29,644 |
Gross unrealized losses, less than 12 months, amount | $ 0 | $ (2,028) |
Gross unrealized losses, 12 months or longer, number of issues | issue | 3 | 1 |
Gross unrealized losses, 12 months or longer, fair value | $ 31,751 | $ 11,090 |
Gross unrealized losses, 12 months or more, amount | (3,522) | (1,615) |
Mortgage revenue bonds | American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 14,494 | 14,902 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Available-for-sale investment securities, at fair value | $ 14,494 | $ 14,902 |
Gross unrealized losses, less than 12 months, number of issues | issue | 0 | 0 |
Gross unrealized losses, less than 12 months, fair value | $ 0 | $ 0 |
Gross unrealized losses, less than 12 months, amount | $ 0 | $ 0 |
Gross unrealized losses, 12 months or longer, number of issues | issue | 0 | 0 |
Gross unrealized losses, 12 months or longer, fair value | $ 0 | $ 0 |
Gross unrealized losses, 12 months or more, amount | $ 0 | $ 0 |
Bank segment - Contractual Matu
Bank segment - Contractual Maturities of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available-for-sale | ||
Due in one year or less | $ 1,811 | |
Due after one year through five years | 115,714 | |
Due after five years through ten years | 14,494 | |
Due after ten years | 0 | |
Total amortized cost | 132,019 | |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,427,186 | |
Amortized cost | 1,559,205 | |
Held-to-maturity | ||
Due in one year or less | 0 | |
Due after one year through five years | 39,824 | |
Due after five years through ten years | 20,088 | |
Due after ten years | 0 | |
Total amortized cost | 59,912 | |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,152,093 | |
Held-to-maturity investment securities, at amortized cost | 1,212,005 | $ 1,251,747 |
Available-for-sale | ||
Due in one year or less | 1,782 | |
Due after one year through five years | 104,970 | |
Due after five years through ten years | 14,494 | |
Due after ten years | 0 | |
Total fair value | 121,246 | |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,145,166 | |
Available-for-sale investment securities, at fair value | 1,266,412 | $ 1,429,667 |
Held-to-maturity | ||
Due in one year or less | 0 | |
Due after one year through five years | 34,133 | |
Due after five years through ten years | 16,238 | |
Due after ten years | 0 | |
Total fair value | 50,371 | |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,001,850 | |
Held-to-maturity investment securities | $ 1,052,221 |
Bank segment - Loans Receivable
Bank segment - Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 6,221,102 | $ 6,005,021 | ||||
Less: Deferred fees and discounts | (30,096) | (26,115) | ||||
Allowance for credit losses | (76,366) | $ (69,068) | (72,216) | $ (70,406) | $ (69,456) | $ (71,130) |
Loans held for investment, net | 6,114,640 | 5,906,690 | ||||
Real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 5,205,698 | 4,970,621 | ||||
Real estate | Residential 1-4 family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 2,566,300 | 2,479,637 | ||||
Allowance for credit losses | (6,467) | (4,708) | (6,270) | (7,584) | (8,520) | (6,545) |
Real estate | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 1,400,570 | 1,358,123 | ||||
Allowance for credit losses | (22,458) | (20,278) | (21,898) | (21,036) | (20,900) | (24,696) |
Real estate | Home equity line of credit | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 1,032,749 | 1,002,905 | ||||
Allowance for credit losses | (7,775) | (7,139) | (6,125) | (5,943) | (6,096) | (5,657) |
Real estate | Residential land | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 20,245 | 20,679 | ||||
Allowance for credit losses | (621) | (653) | (717) | (689) | (677) | (646) |
Real estate | Commercial construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 168,539 | 88,489 | ||||
Allowance for credit losses | (3,624) | (2,549) | (1,195) | (999) | (2,634) | (2,186) |
Real estate | Residential construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 17,295 | 20,788 | ||||
Allowance for credit losses | (42) | (26) | (46) | (49) | (46) | (18) |
Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 732,458 | 779,691 | ||||
Allowance for credit losses | (10,783) | (11,358) | (12,426) | (12,951) | (12,413) | (15,798) |
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 282,946 | 254,709 | ||||
Allowance for credit losses | $ (24,596) | $ (22,357) | $ (23,539) | $ (21,155) | $ (18,170) | $ (15,584) |
Bank segment - Narrative (Detai
Bank segment - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Allowance for credit losses | |||
Other bank borrowings | $ 750,000 | $ 695,120 | |
American Savings Bank (ASB) | |||
Allowance for credit losses | |||
Minimum benchmark percentage of loan to appraisal ratio which mortgage insurance is required | 80% | ||
Minimum benchmark percentage of loan to appraisal ratio on non-owner occupied residential property | 75% | ||
Advances from the FHLB | $ 200,000 | 414,000 | |
American Savings Bank (ASB) | Federal Reserve Bank Advances | |||
Allowance for credit losses | |||
Other bank borrowings | 550,000 | $ 0 | |
Home equity line of credit | |||
Allowance for credit losses | |||
Conversion of debt | 20,400 | $ 12,900 | |
Commercial | |||
Allowance for credit losses | |||
Conversion of debt | 6,100 | 1,600 | |
Consumer | |||
Allowance for credit losses | |||
Conversion of debt | $ 1,100 | $ 2,700 |
Bank segment - Allowance for Cr
Bank segment - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for credit losses: | ||||
Beginning balance | $ 69,068 | $ 69,456 | $ 72,216 | $ 71,130 |
Charge-offs | (2,792) | (1,646) | (9,417) | (4,721) |
Recoveries | 1,755 | 1,282 | 4,214 | 4,189 |
Provision | 8,335 | 1,314 | 9,353 | (192) |
Ending balance | 76,366 | 70,406 | 76,366 | 70,406 |
Real estate | Residential 1-4 family | ||||
Allowance for credit losses: | ||||
Beginning balance | 4,708 | 8,520 | 6,270 | 6,545 |
Charge-offs | 0 | 0 | (990) | 0 |
Recoveries | 57 | 2 | 63 | 13 |
Provision | 1,702 | (938) | 1,124 | 1,026 |
Ending balance | 6,467 | 7,584 | 6,467 | 7,584 |
Real estate | Commercial real estate | ||||
Allowance for credit losses: | ||||
Beginning balance | 20,278 | 20,900 | 21,898 | 24,696 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 2,180 | 136 | 560 | (3,660) |
Ending balance | 22,458 | 21,036 | 22,458 | 21,036 |
Real estate | Home equity line of credit | ||||
Allowance for credit losses: | ||||
Beginning balance | 7,139 | 6,096 | 6,125 | 5,657 |
Charge-offs | 0 | 0 | (360) | 0 |
Recoveries | 131 | 14 | 165 | 56 |
Provision | 505 | (167) | 1,845 | 230 |
Ending balance | 7,775 | 5,943 | 7,775 | 5,943 |
Real estate | Residential land | ||||
Allowance for credit losses: | ||||
Beginning balance | 653 | 677 | 717 | 646 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 1 | 0 | 4 | 101 |
Provision | (33) | 12 | (100) | (58) |
Ending balance | 621 | 689 | 621 | 689 |
Real estate | Commercial construction | ||||
Allowance for credit losses: | ||||
Beginning balance | 2,549 | 2,634 | 1,195 | 2,186 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 1,075 | (1,635) | 2,429 | (1,187) |
Ending balance | 3,624 | 999 | 3,624 | 999 |
Real estate | Residential construction | ||||
Allowance for credit losses: | ||||
Beginning balance | 26 | 46 | 46 | 18 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 16 | 3 | (4) | 31 |
Ending balance | 42 | 49 | 42 | 49 |
Commercial | ||||
Allowance for credit losses: | ||||
Beginning balance | 11,358 | 12,413 | 12,426 | 15,798 |
Charge-offs | (125) | (143) | (509) | (367) |
Recoveries | 725 | 303 | 1,329 | 1,055 |
Provision | (1,175) | 378 | (2,463) | (3,535) |
Ending balance | 10,783 | 12,951 | 10,783 | 12,951 |
Consumer | ||||
Allowance for credit losses: | ||||
Beginning balance | 22,357 | 18,170 | 23,539 | 15,584 |
Charge-offs | (2,667) | (1,503) | (7,558) | (4,354) |
Recoveries | 841 | 963 | 2,653 | 2,964 |
Provision | 4,065 | 3,525 | 5,962 | 6,961 |
Ending balance | $ 24,596 | $ 21,155 | $ 24,596 | $ 21,155 |
Bank segment - Allowance for Lo
Bank segment - Allowance for Loan Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for loan commitments: | ||||
Beginning balance | $ 4,600 | $ 5,900 | $ 4,400 | $ 4,900 |
Provision | 500 | (1,500) | 700 | (500) |
Ending balance | 5,100 | 4,400 | 5,100 | 4,400 |
Real estate | Home equity line of credit | ||||
Allowance for loan commitments: | ||||
Beginning balance | 600 | 400 | 400 | 400 |
Provision | 0 | 0 | 200 | 0 |
Ending balance | 600 | 400 | 600 | 400 |
Real estate | Commercial construction | ||||
Allowance for loan commitments: | ||||
Beginning balance | 3,800 | 4,100 | 2,600 | 3,700 |
Provision | 500 | (1,500) | 1,700 | (1,100) |
Ending balance | 4,300 | 2,600 | 4,300 | 2,600 |
Commercial | ||||
Allowance for loan commitments: | ||||
Beginning balance | 200 | 1,400 | 1,400 | 800 |
Provision | 0 | 0 | (1,200) | 600 |
Ending balance | $ 200 | $ 1,400 | $ 200 | $ 1,400 |
Bank segment - Credit Risk Prof
Bank segment - Credit Risk Profile - Payment Activity and Assigned Grades (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Credit risk profile by internally assigned grade for loans | |||||
Current year | $ 470,984 | $ 470,984 | $ 1,296,473 | ||
One year before current year | 1,222,693 | 1,222,693 | 1,220,751 | ||
Two years before current year | 1,148,475 | 1,148,475 | 808,953 | ||
Three years before current year | 757,370 | 757,370 | 296,592 | ||
Four years before current year | 247,641 | 247,641 | 164,815 | ||
Prior | 1,140,981 | 1,140,981 | 1,077,705 | ||
Revolving | 1,163,634 | 1,163,634 | 1,077,634 | ||
Converted to term loans | 69,324 | 69,324 | 62,098 | ||
Total | 6,221,102 | 6,221,102 | 6,005,021 | ||
Gross charge-offs | 2,792 | $ 1,646 | 9,417 | $ 4,721 | |
30-59 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Total | 7,326 | 7,326 | 5,959 | ||
60-89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Total | 3,347 | 3,347 | 2,343 | ||
Greater than 89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Total | 4,285 | 4,285 | 5,624 | ||
Real estate | |||||
Credit risk profile by internally assigned grade for loans | |||||
Total | 5,205,698 | 5,205,698 | 4,970,621 | ||
Real estate | Residential 1-4 family | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 199,880 | 199,880 | 432,707 | ||
One year before current year | 414,053 | 414,053 | 755,056 | ||
Two years before current year | 741,401 | 741,401 | 423,723 | ||
Three years before current year | 405,819 | 405,819 | 113,096 | ||
Four years before current year | 107,566 | 107,566 | 53,117 | ||
Prior | 697,581 | 697,581 | 701,938 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 2,566,300 | 2,566,300 | 2,479,637 | ||
Charge offs current year | 0 | ||||
Charge offs one year prior of origination year | 0 | ||||
Charge offs two years prior of origination year | 0 | ||||
Charge offs three years prior of origination year | 0 | ||||
Charge offs four years prior of origination year | 0 | ||||
Charge offs more than five years prior of origination year | 990 | ||||
Charge offs revolving loans | 0 | ||||
Charge offs converted to term loans | 0 | ||||
Gross charge-offs | 0 | 0 | 990 | 0 | |
Real estate | Residential 1-4 family | Current | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 199,880 | 199,880 | 432,707 | ||
One year before current year | 414,053 | 414,053 | 755,056 | ||
Two years before current year | 741,401 | 741,401 | 423,455 | ||
Three years before current year | 405,552 | 405,552 | 113,096 | ||
Four years before current year | 107,566 | 107,566 | 51,860 | ||
Prior | 692,167 | 692,167 | 698,354 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 2,560,619 | 2,560,619 | 2,474,528 | ||
Real estate | Residential 1-4 family | 30-59 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 267 | 267 | 0 | ||
Four years before current year | 0 | 0 | 448 | ||
Prior | 2,654 | 2,654 | 1,098 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 2,921 | 2,921 | 1,546 | ||
Real estate | Residential 1-4 family | 60-89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 268 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 973 | 973 | 90 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 973 | 973 | 358 | ||
Real estate | Residential 1-4 family | Greater than 89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 809 | ||
Prior | 1,787 | 1,787 | 2,396 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 1,787 | 1,787 | 3,205 | ||
Real estate | Home equity line of credit | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 977,337 | 977,337 | 961,030 | ||
Converted to term loans | 55,412 | 55,412 | 41,875 | ||
Total | 1,032,749 | 1,032,749 | 1,002,905 | ||
Charge offs current year | 0 | ||||
Charge offs one year prior of origination year | 0 | ||||
Charge offs two years prior of origination year | 0 | ||||
Charge offs three years prior of origination year | 0 | ||||
Charge offs four years prior of origination year | 0 | ||||
Charge offs more than five years prior of origination year | 0 | ||||
Charge offs revolving loans | 77 | ||||
Charge offs converted to term loans | 283 | ||||
Gross charge-offs | 0 | 0 | 360 | 0 | |
Real estate | Home equity line of credit | Current | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 976,029 | 976,029 | 959,131 | ||
Converted to term loans | 54,579 | 54,579 | 40,814 | ||
Total | 1,030,608 | 1,030,608 | 999,945 | ||
Real estate | Home equity line of credit | 30-59 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 463 | 463 | 1,103 | ||
Converted to term loans | 246 | 246 | 209 | ||
Total | 709 | 709 | 1,312 | ||
Real estate | Home equity line of credit | 60-89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 350 | 350 | 209 | ||
Converted to term loans | 321 | 321 | 226 | ||
Total | 671 | 671 | 435 | ||
Real estate | Home equity line of credit | Greater than 89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 495 | 495 | 587 | ||
Converted to term loans | 266 | 266 | 626 | ||
Total | 761 | 761 | 1,213 | ||
Real estate | Residential land | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 3,077 | 3,077 | 5,245 | ||
One year before current year | 5,118 | 5,118 | 9,010 | ||
Two years before current year | 7,549 | 7,549 | 5,222 | ||
Three years before current year | 3,518 | 3,518 | 203 | ||
Four years before current year | 0 | 0 | 522 | ||
Prior | 983 | 983 | 477 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 20,245 | 20,245 | 20,679 | ||
Charge offs current year | 0 | ||||
Charge offs one year prior of origination year | 0 | ||||
Charge offs two years prior of origination year | 0 | ||||
Charge offs three years prior of origination year | 0 | ||||
Charge offs four years prior of origination year | 0 | ||||
Charge offs more than five years prior of origination year | 0 | ||||
Charge offs revolving loans | 0 | ||||
Charge offs converted to term loans | 0 | ||||
Gross charge-offs | 0 | 0 | 0 | 0 | |
Real estate | Residential land | Current | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 3,077 | 3,077 | 5,245 | ||
One year before current year | 5,118 | 5,118 | 9,010 | ||
Two years before current year | 7,549 | 7,549 | 5,222 | ||
Three years before current year | 3,518 | 3,518 | 203 | ||
Four years before current year | 0 | 0 | 522 | ||
Prior | 983 | 983 | 477 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 20,245 | 20,245 | 20,679 | ||
Real estate | Residential land | 30-59 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Real estate | Residential land | 60-89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Real estate | Residential land | Greater than 89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Real estate | Residential construction | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 2,780 | 2,780 | 7,986 | ||
One year before current year | 11,019 | 11,019 | 11,624 | ||
Two years before current year | 3,496 | 3,496 | 1,178 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 17,295 | 17,295 | 20,788 | ||
Charge offs current year | 0 | ||||
Charge offs one year prior of origination year | 0 | ||||
Charge offs two years prior of origination year | 0 | ||||
Charge offs three years prior of origination year | 0 | ||||
Charge offs four years prior of origination year | 0 | ||||
Charge offs more than five years prior of origination year | 0 | ||||
Charge offs revolving loans | 0 | ||||
Charge offs converted to term loans | 0 | ||||
Gross charge-offs | 0 | 0 | 0 | 0 | |
Real estate | Residential construction | Current | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 2,780 | 2,780 | 7,986 | ||
One year before current year | 11,019 | 11,019 | 11,624 | ||
Two years before current year | 3,496 | 3,496 | 1,178 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 17,295 | 17,295 | 20,788 | ||
Real estate | Residential construction | 30-59 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Real estate | Residential construction | 60-89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Real estate | Residential construction | Greater than 89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Real estate | Commercial real estate | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 86,673 | 86,673 | 390,206 | ||
One year before current year | 390,352 | 390,352 | 188,380 | ||
Two years before current year | 189,888 | 189,888 | 287,432 | ||
Three years before current year | 269,189 | 269,189 | 103,322 | ||
Four years before current year | 91,612 | 91,612 | 63,084 | ||
Prior | 357,374 | 357,374 | 317,464 | ||
Revolving | 15,482 | 15,482 | 8,235 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 1,400,570 | 1,400,570 | 1,358,123 | ||
Charge offs current year | 0 | ||||
Charge offs one year prior of origination year | 0 | ||||
Charge offs two years prior of origination year | 0 | ||||
Charge offs three years prior of origination year | 0 | ||||
Charge offs four years prior of origination year | 0 | ||||
Charge offs more than five years prior of origination year | 0 | ||||
Charge offs revolving loans | 0 | ||||
Charge offs converted to term loans | 0 | ||||
Gross charge-offs | 0 | 0 | 0 | 0 | |
Real estate | Commercial real estate | Pass | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 81,287 | 81,287 | 390,206 | ||
One year before current year | 390,352 | 390,352 | 177,130 | ||
Two years before current year | 177,125 | 177,125 | 283,321 | ||
Three years before current year | 265,808 | 265,808 | 51,542 | ||
Four years before current year | 66,112 | 66,112 | 63,084 | ||
Prior | 329,235 | 329,235 | 278,280 | ||
Revolving | 15,482 | 15,482 | 8,235 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 1,325,401 | 1,325,401 | 1,251,798 | ||
Real estate | Commercial real estate | Special Mention | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 11,250 | ||
Two years before current year | 11,214 | 11,214 | 3,446 | ||
Three years before current year | 3,381 | 3,381 | 40,423 | ||
Four years before current year | 14,452 | 14,452 | 0 | ||
Prior | 22,367 | 22,367 | 24,466 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 51,414 | 51,414 | 79,585 | ||
Real estate | Commercial real estate | Substandard | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 5,386 | 5,386 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 1,549 | 1,549 | 665 | ||
Three years before current year | 0 | 0 | 11,357 | ||
Four years before current year | 11,048 | 11,048 | 0 | ||
Prior | 5,772 | 5,772 | 14,718 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 23,755 | 23,755 | 26,740 | ||
Real estate | Commercial real estate | Doubtful | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Real estate | Commercial real estate | 30-59 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Total | 0 | 0 | 508 | ||
Real estate | Commercial real estate | 60-89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Total | 0 | 0 | 217 | ||
Real estate | Commercial real estate | Greater than 89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Total | 0 | 0 | 0 | ||
Real estate | Commercial construction | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 10,643 | 10,643 | 15,094 | ||
One year before current year | 21,440 | 21,440 | 47,478 | ||
Two years before current year | 66,143 | 66,143 | 44 | ||
Three years before current year | 356 | 356 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 69,957 | 69,957 | 25,873 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 168,539 | 168,539 | 88,489 | ||
Charge offs current year | 0 | ||||
Charge offs one year prior of origination year | 0 | ||||
Charge offs two years prior of origination year | 0 | ||||
Charge offs three years prior of origination year | 0 | ||||
Charge offs four years prior of origination year | 0 | ||||
Charge offs more than five years prior of origination year | 0 | ||||
Charge offs revolving loans | 0 | ||||
Charge offs converted to term loans | 0 | ||||
Gross charge-offs | 0 | 0 | 0 | 0 | |
Real estate | Commercial construction | Pass | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 10,643 | 10,643 | 15,094 | ||
One year before current year | 21,440 | 21,440 | 47,478 | ||
Two years before current year | 66,143 | 66,143 | 44 | ||
Three years before current year | 356 | 356 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 69,957 | 69,957 | 25,873 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 168,539 | 168,539 | 88,489 | ||
Real estate | Commercial construction | Special Mention | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Real estate | Commercial construction | Substandard | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Real estate | Commercial construction | Doubtful | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Real estate | Commercial construction | 30-59 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Total | 0 | 0 | 0 | ||
Real estate | Commercial construction | 60-89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Total | 0 | 0 | 0 | ||
Real estate | Commercial construction | Greater than 89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Total | 0 | 0 | 0 | ||
Consumer | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 83,841 | 83,841 | 202,061 | ||
One year before current year | 168,293 | 168,293 | 21,885 | ||
Two years before current year | 12,535 | 12,535 | 5,733 | ||
Three years before current year | 2,505 | 2,505 | 8,132 | ||
Four years before current year | 1,137 | 1,137 | 604 | ||
Prior | 225 | 225 | 140 | ||
Revolving | 10,574 | 10,574 | 10,956 | ||
Converted to term loans | 3,836 | 3,836 | 5,198 | ||
Total | 282,946 | 282,946 | 254,709 | ||
Charge offs current year | 850 | ||||
Charge offs one year prior of origination year | 4,637 | ||||
Charge offs two years prior of origination year | 840 | ||||
Charge offs three years prior of origination year | 163 | ||||
Charge offs four years prior of origination year | 363 | ||||
Charge offs more than five years prior of origination year | 39 | ||||
Charge offs revolving loans | 279 | ||||
Charge offs converted to term loans | 387 | ||||
Gross charge-offs | 2,667 | 1,503 | 7,558 | 4,354 | |
Consumer | Current | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 82,282 | 82,282 | 199,574 | ||
One year before current year | 164,693 | 164,693 | 21,330 | ||
Two years before current year | 12,203 | 12,203 | 5,543 | ||
Three years before current year | 2,394 | 2,394 | 7,580 | ||
Four years before current year | 1,010 | 1,010 | 527 | ||
Prior | 222 | 222 | 140 | ||
Revolving | 10,345 | 10,345 | 10,810 | ||
Converted to term loans | 3,413 | 3,413 | 4,782 | ||
Total | 276,562 | 276,562 | 250,286 | ||
Consumer | 30-59 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 822 | 822 | 1,110 | ||
One year before current year | 1,882 | 1,882 | 287 | ||
Two years before current year | 122 | 122 | 65 | ||
Three years before current year | 43 | 43 | 239 | ||
Four years before current year | 49 | 49 | 30 | ||
Prior | 1 | 1 | 0 | ||
Revolving | 46 | 46 | 81 | ||
Converted to term loans | 156 | 156 | 167 | ||
Total | 3,121 | 3,121 | 1,979 | ||
Consumer | 60-89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 362 | 362 | 756 | ||
One year before current year | 933 | 933 | 163 | ||
Two years before current year | 108 | 108 | 88 | ||
Three years before current year | 35 | 35 | 137 | ||
Four years before current year | 52 | 52 | 19 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 32 | 32 | 45 | ||
Converted to term loans | 81 | 81 | 107 | ||
Total | 1,603 | 1,603 | 1,315 | ||
Consumer | Greater than 89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 375 | 375 | 621 | ||
One year before current year | 785 | 785 | 105 | ||
Two years before current year | 102 | 102 | 37 | ||
Three years before current year | 33 | 33 | 176 | ||
Four years before current year | 26 | 26 | 28 | ||
Prior | 2 | 2 | 0 | ||
Revolving | 151 | 151 | 20 | ||
Converted to term loans | 186 | 186 | 142 | ||
Total | 1,660 | 1,660 | 1,129 | ||
Commercial | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 84,090 | 84,090 | 243,174 | ||
One year before current year | 212,418 | 212,418 | 187,318 | ||
Two years before current year | 127,463 | 127,463 | 85,621 | ||
Three years before current year | 75,983 | 75,983 | 71,839 | ||
Four years before current year | 47,326 | 47,326 | 47,488 | ||
Prior | 84,818 | 84,818 | 57,686 | ||
Revolving | 90,284 | 90,284 | 71,540 | ||
Converted to term loans | 10,076 | 10,076 | 15,025 | ||
Total | 732,458 | 732,458 | 779,691 | ||
Charge offs current year | 0 | ||||
Charge offs one year prior of origination year | 0 | ||||
Charge offs two years prior of origination year | 51 | ||||
Charge offs three years prior of origination year | 0 | ||||
Charge offs four years prior of origination year | 0 | ||||
Charge offs more than five years prior of origination year | 0 | ||||
Charge offs revolving loans | 177 | ||||
Charge offs converted to term loans | 281 | ||||
Gross charge-offs | 125 | $ 143 | 509 | $ 367 | |
Commercial | Pass | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 82,145 | 82,145 | 239,852 | ||
One year before current year | 209,364 | 209,364 | 185,013 | ||
Two years before current year | 124,453 | 124,453 | 85,220 | ||
Three years before current year | 75,753 | 75,753 | 68,161 | ||
Four years before current year | 46,291 | 46,291 | 46,142 | ||
Prior | 81,409 | 81,409 | 53,192 | ||
Revolving | 81,627 | 81,627 | 60,871 | ||
Converted to term loans | 9,560 | 9,560 | 13,964 | ||
Total | 710,602 | 710,602 | 752,415 | ||
Commercial | Special Mention | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 1,945 | 1,945 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 970 | 970 | 0 | ||
Three years before current year | 0 | 0 | 2,374 | ||
Four years before current year | 272 | 272 | 0 | ||
Prior | 0 | 0 | 645 | ||
Revolving | 7,151 | 7,151 | 9,005 | ||
Converted to term loans | 0 | 0 | 8 | ||
Total | 10,338 | 10,338 | 12,032 | ||
Commercial | Substandard | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 3,322 | ||
One year before current year | 3,054 | 3,054 | 2,305 | ||
Two years before current year | 2,040 | 2,040 | 401 | ||
Three years before current year | 230 | 230 | 1,304 | ||
Four years before current year | 763 | 763 | 1,346 | ||
Prior | 3,409 | 3,409 | 3,849 | ||
Revolving | 1,506 | 1,506 | 1,664 | ||
Converted to term loans | 516 | 516 | 1,053 | ||
Total | 11,518 | 11,518 | 15,244 | ||
Commercial | Doubtful | |||||
Credit risk profile by internally assigned grade for loans | |||||
Current year | 0 | 0 | 0 | ||
One year before current year | 0 | 0 | 0 | ||
Two years before current year | 0 | 0 | 0 | ||
Three years before current year | 0 | 0 | 0 | ||
Four years before current year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Converted to term loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Commercial | 30-59 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Total | 575 | 575 | 614 | ||
Commercial | 60-89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Total | 100 | 100 | 18 | ||
Commercial | Greater than 89 days past due | |||||
Credit risk profile by internally assigned grade for loans | |||||
Total | $ 77 | $ 77 | $ 77 |
Bank segment - Credit Risk Pr_2
Bank segment - Credit Risk Profile - Payment Activity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Credit risk profile based on payment activity for loans | ||
Total financing receivables | $ 6,221,102 | $ 6,005,021 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 5,205,698 | 4,970,621 |
Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,566,300 | 2,479,637 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,400,570 | 1,358,123 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,032,749 | 1,002,905 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 20,245 | 20,679 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 168,539 | 88,489 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 17,295 | 20,788 |
Amortized cost> 90 days and accruing | 0 | 0 |
Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 732,458 | 779,691 |
Amortized cost> 90 days and accruing | 0 | 0 |
Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 282,946 | 254,709 |
Amortized cost> 90 days and accruing | 0 | 0 |
30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 7,326 | 5,959 |
30-59 days past due | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,921 | 1,546 |
30-59 days past due | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 508 |
30-59 days past due | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 709 | 1,312 |
30-59 days past due | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
30-59 days past due | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
30-59 days past due | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
30-59 days past due | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 575 | 614 |
30-59 days past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 3,121 | 1,979 |
60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 3,347 | 2,343 |
60-89 days past due | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 973 | 358 |
60-89 days past due | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 217 |
60-89 days past due | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 671 | 435 |
60-89 days past due | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
60-89 days past due | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
60-89 days past due | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
60-89 days past due | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 100 | 18 |
60-89 days past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,603 | 1,315 |
Greater than 90 days | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 4,285 | 5,624 |
Greater than 90 days | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,787 | 3,205 |
Greater than 90 days | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Greater than 90 days | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 761 | 1,213 |
Greater than 90 days | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Greater than 90 days | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Greater than 90 days | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Greater than 90 days | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 77 | 77 |
Greater than 90 days | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,660 | 1,129 |
Total past due | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 14,958 | 13,926 |
Total past due | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 5,681 | 5,109 |
Total past due | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 725 |
Total past due | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,141 | 2,960 |
Total past due | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Total past due | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Total past due | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
Total past due | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 752 | 709 |
Total past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 6,384 | 4,423 |
Current | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 6,206,144 | 5,991,095 |
Current | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,560,619 | 2,474,528 |
Current | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,400,570 | 1,357,398 |
Current | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,030,608 | 999,945 |
Current | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 20,245 | 20,679 |
Current | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 168,539 | 88,489 |
Current | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 17,295 | 20,788 |
Current | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 731,706 | 778,982 |
Current | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | $ 276,562 | $ 250,286 |
Bank segment - Credit Risk Pr_3
Bank segment - Credit Risk Profile - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | $ 6,365 | $ 12,043 |
Without a Related ACL | 3,517 | 4,423 |
Total | 9,882 | 16,466 |
Real estate | Residential 1-4 family | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 573 | 4,198 |
Without a Related ACL | 2,500 | 2,981 |
Total | 3,073 | 7,179 |
Real estate | Commercial real estate | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 0 | 0 |
Without a Related ACL | 0 | 0 |
Total | 0 | 0 |
Real estate | Home equity line of credit | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 2,764 | 3,654 |
Without a Related ACL | 1,017 | 1,442 |
Total | 3,781 | 5,096 |
Real estate | Residential land | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 106 | 420 |
Without a Related ACL | 0 | 0 |
Total | 106 | 420 |
Real estate | Commercial construction | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 0 | 0 |
Without a Related ACL | 0 | 0 |
Total | 0 | 0 |
Real estate | Residential construction | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 0 | 0 |
Without a Related ACL | 0 | 0 |
Total | 0 | 0 |
Commercial | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 508 | 2,183 |
Without a Related ACL | 0 | 0 |
Total | 508 | 2,183 |
Consumer | ||
Credit risk profile based on nonaccrual loans | ||
With a Related ACL | 2,414 | 1,588 |
Without a Related ACL | 0 | 0 |
Total | $ 2,414 | $ 1,588 |
Bank segment - Credit Risk Pr_4
Bank segment - Credit Risk Profile - Troubled Debt Restructured Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Financing Receivable, Modified [Line Items] | |
Total troubled debt restructured loans accruing interest | $ 30,130 |
Real estate | Residential 1-4 family | |
Financing Receivable, Modified [Line Items] | |
Total troubled debt restructured loans accruing interest | 8,821 |
Real estate | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Total troubled debt restructured loans accruing interest | 9,477 |
Real estate | Home equity line of credit | |
Financing Receivable, Modified [Line Items] | |
Total troubled debt restructured loans accruing interest | 4,404 |
Real estate | Residential land | |
Financing Receivable, Modified [Line Items] | |
Total troubled debt restructured loans accruing interest | 782 |
Real estate | Commercial construction | |
Financing Receivable, Modified [Line Items] | |
Total troubled debt restructured loans accruing interest | 0 |
Real estate | Residential construction | |
Financing Receivable, Modified [Line Items] | |
Total troubled debt restructured loans accruing interest | 0 |
Commercial | |
Financing Receivable, Modified [Line Items] | |
Total troubled debt restructured loans accruing interest | 6,596 |
Consumer | |
Financing Receivable, Modified [Line Items] | |
Total troubled debt restructured loans accruing interest | $ 50 |
Bank segment - Loan Modificatio
Bank segment - Loan Modifications (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) contract | Sep. 30, 2022 USD ($) contract | |
Financing Receivable, Modified [Line Items] | ||
Financing receivable, modifications, number of contracts | contract | 3 | 5 |
Financing receivables modifications pre modification recorded investment | $ 716 | $ 1,385 |
Related allowance | $ 16 | $ 171 |
Residential 1-4 family | ||
Financing Receivable, Modified [Line Items] | ||
Financing receivable, modifications, number of contracts | contract | 2 | 3 |
Financing receivables modifications pre modification recorded investment | $ 512 | $ 893 |
Related allowance | $ 0 | $ 135 |
Commercial real estate | ||
Financing Receivable, Modified [Line Items] | ||
Financing receivable, modifications, number of contracts | contract | 0 | 0 |
Financing receivables modifications pre modification recorded investment | $ 0 | $ 0 |
Related allowance | $ 0 | $ 0 |
Home equity line of credit | ||
Financing Receivable, Modified [Line Items] | ||
Financing receivable, modifications, number of contracts | contract | 0 | 0 |
Financing receivables modifications pre modification recorded investment | $ 0 | $ 0 |
Related allowance | $ 0 | $ 0 |
Residential land | ||
Financing Receivable, Modified [Line Items] | ||
Financing receivable, modifications, number of contracts | contract | 1 | 1 |
Financing receivables modifications pre modification recorded investment | $ 204 | $ 204 |
Related allowance | $ 16 | $ 16 |
Commercial construction | ||
Financing Receivable, Modified [Line Items] | ||
Financing receivable, modifications, number of contracts | contract | 0 | 0 |
Financing receivables modifications pre modification recorded investment | $ 0 | $ 0 |
Related allowance | $ 0 | $ 0 |
Residential construction | ||
Financing Receivable, Modified [Line Items] | ||
Financing receivable, modifications, number of contracts | contract | 0 | 0 |
Financing receivables modifications pre modification recorded investment | $ 0 | $ 0 |
Related allowance | $ 0 | $ 0 |
Commercial loans | ||
Financing Receivable, Modified [Line Items] | ||
Financing receivable, modifications, number of contracts | contract | 0 | 1 |
Financing receivables modifications pre modification recorded investment | $ 0 | $ 288 |
Related allowance | $ 0 | $ 20 |
Consumer loans | ||
Financing Receivable, Modified [Line Items] | ||
Financing receivable, modifications, number of contracts | contract | 0 | 0 |
Financing receivables modifications pre modification recorded investment | $ 0 | $ 0 |
Related allowance | $ 0 | $ 0 |
Bank segment - Troubled Debt Re
Bank segment - Troubled Debt Restructuring Narrative (Details) - Troubled debt restructurings real estate loans - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Impaired [Line Items] | ||
Financing receivable modifications minimum, period of payment default of loans determined to be TDRs (in days) | 90 days | |
Commitments to lend additional funds to borrows with impaired or modified loans | $ 0 |
Bank segment - Collateral - Dep
Bank segment - Collateral - Dependent loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Nonaccrual [Line Items] | ||
Consumer mortgage loans collateralized by residential real estate property in foreclosure process | $ 3,400 | $ 4,200 |
Residential real estate property | Real estate | Residential 1-4 family | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 2,584 | 3,959 |
Residential real estate property | Real estate | Home equity line of credit | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 1,017 | 1,425 |
Collateral pledged | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | $ 3,601 | $ 5,384 |
Bank segment - Mortgage Servici
Bank segment - Mortgage Servicing Rights (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) loan | Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) loan | Dec. 31, 2022 USD ($) | |
Servicing contracts | |||||
Prepayment rate: | |||||
25 basis points adverse rate change | $ (90) | $ (90) | $ (92) | ||
50 basis points adverse rate change | (207) | (207) | (214) | ||
Discount rate: | |||||
25 basis points adverse rate change | (206) | (206) | (182) | ||
50 basis points adverse rate change | $ (407) | $ (407) | (361) | ||
American Savings Bank (ASB) | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Number of mortgage loans repurchased | loan | 0 | 1 | 0 | 1 | |
Mortgage service fees | $ 900 | $ 1,000 | $ 2,700 | $ 2,800 | |
Mortgage servicing rights | |||||
Servicing asset - beginning balance | 9,047 | ||||
Servicing asset - ending balance | 8,376 | 8,376 | |||
American Savings Bank (ASB) | Residential loan | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Proceeds from sale of residential loans | 21,500 | 12,100 | 36,100 | 126,400 | |
Gain on sale of mortgage loans | 300 | 200 | 700 | 1,600 | |
American Savings Bank (ASB) | Servicing contracts | |||||
Changes in Carrying Value of MSRs | |||||
Gross carrying amount | 18,125 | 18,125 | 19,544 | ||
Accumulated amortization | (9,749) | (9,749) | (10,497) | ||
Valuation allowance | 0 | 0 | 0 | 0 | 0 |
Net carrying amount | 8,376 | 9,351 | 8,376 | 9,351 | 9,047 |
Mortgage servicing rights | |||||
Servicing asset - beginning balance | 8,495 | 9,696 | 9,047 | 9,950 | |
Amount capitalized | 184 | 117 | 319 | 1,040 | |
Amortization | (303) | (462) | (990) | (1,639) | |
Other-than-temporary impairment | 0 | 0 | 0 | 0 | |
Servicing asset - ending balance | 8,376 | 9,351 | 8,376 | 9,351 | |
Valuation allowance for mortgage servicing rights | |||||
Valuation allowance, beginning balance | 0 | 0 | 0 | 0 | |
Provision | 0 | 0 | 0 | 0 | |
Other-than-temporary impairment | 0 | 0 | 0 | 0 | |
Valuation allowance, ending balance | 0 | $ 0 | 0 | $ 0 | |
Unpaid principal balance | $ 1,412,412 | $ 1,412,412 | $ 1,451,322 | ||
American Savings Bank (ASB) | Servicing contracts | Weighted average note rate | |||||
Valuation allowance for mortgage servicing rights | |||||
Weighted average measurement input | 0.0344 | 0.0344 | 0.0338 | ||
American Savings Bank (ASB) | Servicing contracts | Weighted average discount rate | |||||
Valuation allowance for mortgage servicing rights | |||||
Weighted average measurement input | 0.1000 | 0.1000 | 0.1000 | ||
American Savings Bank (ASB) | Servicing contracts | Weighted average prepayment speed | |||||
Valuation allowance for mortgage servicing rights | |||||
Weighted average measurement input | 0.0558 | 0.0558 | 0.0656 |
Bank segment - Other Borrowings
Bank segment - Other Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Offsetting Liabilities [Line Items] | ||
Other bank borrowings | $ 750,000 | $ 695,120 |
Gross amount of recognized liabilities | 0 | 281,000 |
Gross amount offset in the Balance Sheets | 0 | 0 |
Net amount of liabilities presented in the Balance Sheets | 0 | 281,000 |
Commercial account holders | ||
Offsetting Liabilities [Line Items] | ||
Net amount of liabilities presented in the Balance Sheets | 0 | 281,000 |
Financial instruments | 0 | 327,000 |
Cash collateral pledged | 0 | 0 |
American Savings Bank (ASB) | ||
Offsetting Liabilities [Line Items] | ||
Advances from the FHLB | 200,000 | 414,000 |
American Savings Bank (ASB) | Federal Reserve Bank Advances | ||
Offsetting Liabilities [Line Items] | ||
Other bank borrowings | $ 550,000 | $ 0 |
Bank segment - Derivative Finan
Bank segment - Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Derivative instrument | |||||
Derivative, gain (loss), statement of income or comprehensive income | Revenues | Revenues | Revenues | Revenues | |
Derivative Financial Instruments Not Designated as Hedging Instruments | |||||
Derivative instrument | |||||
Asset derivatives | $ 69 | $ 69 | $ 27 | ||
Liability derivatives | 0 | 0 | 0 | ||
Net gains (losses) recognized in the Statement of Income | (70) | $ 16 | 42 | $ (540) | |
Interest rate lock commitments | |||||
Derivative instrument | |||||
Notional amount | 4,910 | 4,910 | 1,720 | ||
Fair value | 54 | 54 | 9 | ||
Interest rate lock commitments | Derivative Financial Instruments Not Designated as Hedging Instruments | |||||
Derivative instrument | |||||
Asset derivatives | 54 | 54 | 9 | ||
Liability derivatives | 0 | 0 | 0 | ||
Net gains (losses) recognized in the Statement of Income | (34) | (129) | 45 | (722) | |
Forward commitments | |||||
Derivative instrument | |||||
Notional amount | 3,500 | 3,500 | 1,500 | ||
Fair value | 15 | 15 | 18 | ||
Forward commitments | Derivative Financial Instruments Not Designated as Hedging Instruments | |||||
Derivative instrument | |||||
Asset derivatives | 15 | 15 | 18 | ||
Liability derivatives | 0 | 0 | $ 0 | ||
Net gains (losses) recognized in the Statement of Income | $ (36) | $ 145 | $ (3) | $ 182 |
Bank segment - Contingencies (D
Bank segment - Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
American Savings Bank (ASB) | ||
Loss Contingencies [Line Items] | ||
Unfunded commitments to fund the company's LIHTC | $ 77.1 | $ 70.1 |
Credit agreement and changes _3
Credit agreement and changes in debt - Narrative (Details) | Nov. 01, 2023 USD ($) | May 14, 2023 USD ($) institution extensionOption | Feb. 18, 2022 USD ($) extensionOption | Aug. 23, 2023 USD ($) | Aug. 15, 2023 USD ($) | Mar. 31, 2023 USD ($) | Mar. 16, 2023 USD ($) | Dec. 28, 2022 USD ($) | Oct. 20, 2022 USD ($) | May 14, 2021 USD ($) institution |
HEI Facility | ||||||||||
Credit agreement | ||||||||||
Credit agreement | $ 175,000,000 | $ 175,000,000 | $ 175,000,000 | $ 175,000,000 | ||||||
Credit agreement, remaining borrowing capacity | 157,000,000 | |||||||||
Amount of initial drawing | $ 2,500,000 | |||||||||
HEI Facility | Senior Notes | ||||||||||
Credit agreement | ||||||||||
Aggregate principal amount | $ 100,000,000 | |||||||||
Hawaiian Electric Facility | ||||||||||
Credit agreement | ||||||||||
Credit agreement | 200,000,000 | $ 200,000,000 | ||||||||
Credit agreement, remaining borrowing capacity | $ 180,000,000 | |||||||||
Hawaiian Electric Facility | Subsequent Event | ||||||||||
Credit agreement | ||||||||||
Repayment of credit | $ 100,000,000 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Credit Facilities | ||||||||||
Credit agreement | ||||||||||
Number of financial institutions | institution | 9 | 9 | ||||||||
Number of financial institutions with extended termination date | institution | 8 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Facility | ||||||||||
Credit agreement | ||||||||||
Credit agreement | $ 200,000,000 | $ 200,000,000 | ||||||||
Number of extension options | extensionOption | 2 | 2 | ||||||||
Extension period | 1 year | 1 year | ||||||||
Extended maximum borrowing capacity | $ 275,000,000 | |||||||||
Hawaiian Electric, Parent | Term Loan | ||||||||||
Credit agreement | ||||||||||
Aggregate principal amount | $ 100,000,000 | |||||||||
Line of credit outstanding | $ 65,000,000 | $ 35,000,000 | ||||||||
Hawaiian Electric, Parent | Term Loan | SOFR | ||||||||||
Credit agreement | ||||||||||
Effective interest rate | 5.81% |
Credit agreement and changes _4
Credit agreement and changes in debt - HEI Private Placement (Details) - Senior Notes | Sep. 30, 2023 USD ($) |
Series 2023A | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 39,000,000 |
Fixed coupon interest rate | 6.04% |
Series 2023B | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 61,000,000 |
Fixed coupon interest rate | 6.10% |
Credit agreement and changes _5
Credit agreement and changes in debt - Note Purchase Agreements (Details) - Senior Notes - USD ($) | Sep. 30, 2023 | Jan. 10, 2023 |
Series 2023A | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 39,000,000 | |
Fixed coupon interest rate | 6.04% | |
Series 2023A | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 90,000,000 | |
Series 2023A | Hawaiian Electric, Parent | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 40,000,000 | |
Fixed coupon interest rate | 6.11% | |
Series 2023A | Hawaii Electric Light Company, Inc | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 25,000,000 | |
Fixed coupon interest rate | 6.25% | |
Series 2023A | Maui Electric | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 25,000,000 | |
Fixed coupon interest rate | 6.25% | |
Series 2023B | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 61,000,000 | |
Fixed coupon interest rate | 6.10% | |
Series 2023B | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 40,000,000 | |
Series 2023B | Hawaiian Electric, Parent | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 40,000,000 | |
Fixed coupon interest rate | 6.25% | |
Series 2023C | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 20,000,000 | |
Series 2023C | Hawaiian Electric, Parent | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 20,000,000 | |
Fixed coupon interest rate | 6.70% |
Shareholders' equity - Accumula
Shareholders' equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | $ 2,249,377 | $ 2,237,955 | $ 2,202,499 | $ 2,233,504 | $ 2,303,642 | $ 2,390,884 | $ 2,202,499 | $ 2,390,884 |
Current period other comprehensive income (loss) | (34,875) | (7,609) | 20,488 | (96,012) | (87,840) | (117,159) | (21,996) | (301,011) |
Ending balance | 2,224,354 | 2,249,377 | 2,237,955 | 2,162,922 | 2,233,504 | 2,303,642 | 2,224,354 | 2,162,922 |
AOCI | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (323,149) | (315,540) | (336,028) | (257,532) | (169,692) | (52,533) | (336,028) | (52,533) |
Current period other comprehensive income (loss) | (34,875) | (7,609) | 20,488 | (96,012) | (87,840) | (117,159) | ||
Ending balance | (358,024) | (323,149) | (315,540) | (353,544) | (257,532) | (169,692) | (358,024) | (353,544) |
Net unrealized gains (losses) on securities | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (328,904) | (32,037) | (328,904) | (32,037) | ||||
Current period other comprehensive income (loss) | (21,330) | (308,229) | ||||||
Ending balance | (350,234) | (340,266) | (350,234) | (340,266) | ||||
Unrealized gains (losses) on derivatives | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | 1,991 | (3,638) | 1,991 | (3,638) | ||||
Current period other comprehensive income (loss) | (827) | 6,561 | ||||||
Ending balance | 1,164 | 2,923 | 1,164 | 2,923 | ||||
Retirement benefit plans | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (9,115) | (16,858) | (9,115) | (16,858) | ||||
Current period other comprehensive income (loss) | 161 | 657 | ||||||
Ending balance | (8,954) | (16,201) | (8,954) | (16,201) | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | 2,371,889 | 2,358,884 | 2,344,170 | 2,289,595 | 2,276,884 | 2,261,899 | 2,344,170 | 2,261,899 |
Current period other comprehensive income (loss) | (77) | (44) | (45) | 108 | 51 | 51 | (166) | 210 |
Ending balance | 2,383,023 | 2,371,889 | 2,358,884 | 2,307,992 | 2,289,595 | 2,276,884 | 2,383,023 | 2,307,992 |
Hawaiian Electric Company, Inc. and Subsidiaries | AOCI | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | 2,772 | 2,816 | 2,861 | (3,178) | (3,229) | (3,280) | 2,861 | (3,280) |
Current period other comprehensive income (loss) | (77) | (44) | (45) | 108 | 51 | 51 | ||
Ending balance | 2,695 | $ 2,772 | 2,816 | (3,070) | $ (3,178) | (3,229) | 2,695 | (3,070) |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | $ 2,861 | $ (3,280) | 2,861 | (3,280) | ||||
Current period other comprehensive income (loss) | (166) | 210 | ||||||
Ending balance | $ 2,695 | $ (3,070) | $ 2,695 | $ (3,070) |
Shareholders' equity - Reclassi
Shareholders' equity - Reclassification out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Revenues | $ (901,873) | $ (1,042,197) | $ (2,725,795) | $ (2,722,872) |
Interest expense | 32,629 | 26,626 | 91,259 | 75,940 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 3,676 | 356 | 11,083 | 818 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Revenues | (794,987) | (955,971) | (2,419,539) | (2,483,636) |
Total reclassifications | (43,959) | (50,262) | (137,265) | (141,804) |
Hawaiian Electric Company, Inc. and Subsidiaries | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | (77) | 108 | (166) | 210 |
Net unrealized gains (losses) on available-for sale investment securities - amortization of unrealized holding losses on held-to-maturity securities | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Revenues | 3,699 | 0 | 11,065 | 0 |
Net realized losses (gains) on derivatives qualifying as cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Interest expense | (47) | 53 | (143) | 161 |
Amortization of prior service credit and net losses (gains) recognized during the period in net periodic benefit cost | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | (446) | 5,606 | (1,160) | 10,229 |
Amortization of prior service credit and net losses (gains) recognized during the period in net periodic benefit cost | Hawaiian Electric Company, Inc. and Subsidiaries | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | (547) | 5,411 | (1,487) | 9,782 |
Impact of D&Os of the PUC included in regulatory assets | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 470 | (5,303) | 1,321 | (9,572) |
Impact of D&Os of the PUC included in regulatory assets | Hawaiian Electric Company, Inc. and Subsidiaries | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | $ 470 | $ (5,303) | $ 1,321 | $ (9,572) |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 822,044 | $ 990,338 | $ 2,435,416 | $ 2,527,153 |
Total revenues from other sources | 79,829 | 51,859 | 290,379 | 195,719 |
Revenues | 901,873 | 1,042,197 | 2,725,795 | 2,722,872 |
Services/goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,067 | 12,058 | 36,370 | 36,851 |
Services/goods transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 809,977 | 978,280 | 2,399,046 | 2,490,302 |
Electric energy sales - residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 257,790 | 306,417 | 753,207 | 790,424 |
Electric energy sales - commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 257,876 | 309,940 | 762,454 | 794,238 |
Electric energy sales - large light and power | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 284,607 | 351,763 | 855,396 | 886,733 |
Electric energy sales - other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,688 | 5,400 | 14,628 | 11,699 |
Bank fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,067 | 12,058 | 36,370 | 36,851 |
Other sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5,016 | 4,760 | 13,361 | 7,208 |
Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | (20,927) | (26,301) | 3,716 | (24,843) |
Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 85,636 | 68,417 | 246,856 | 191,228 |
Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 3,271 | 936 | 8,490 | 3,771 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 11,849 | 8,807 | 31,317 | 25,563 |
Electric utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 804,961 | 973,520 | 2,385,685 | 2,483,094 |
Total revenues from other sources | (9,974) | (17,549) | 33,854 | 542 |
Revenues | 794,987 | 955,971 | 2,419,539 | 2,483,636 |
Electric utility | Services/goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Electric utility | Services/goods transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 804,961 | 973,520 | 2,385,685 | 2,483,094 |
Electric utility | Electric energy sales - residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 257,790 | 306,417 | 753,207 | 790,424 |
Electric utility | Electric energy sales - commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 257,876 | 309,940 | 762,454 | 794,238 |
Electric utility | Electric energy sales - large light and power | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 284,607 | 351,763 | 855,396 | 886,733 |
Electric utility | Electric energy sales - other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,688 | 5,400 | 14,628 | 11,699 |
Electric utility | Bank fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Electric utility | Other sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Electric utility | Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | (20,927) | (26,301) | 3,716 | (24,843) |
Electric utility | Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 0 | 0 | 0 | 0 |
Electric utility | Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 0 | 0 | 0 | 0 |
Electric utility | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 10,953 | 8,752 | 30,138 | 25,385 |
Bank | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,067 | 12,058 | 36,370 | 36,851 |
Total revenues from other sources | 88,907 | 69,353 | 255,346 | 194,999 |
Revenues | 100,974 | 81,411 | 291,716 | 231,850 |
Bank | Services/goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,067 | 12,058 | 36,370 | 36,851 |
Bank | Services/goods transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Electric energy sales - residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Electric energy sales - commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Electric energy sales - large light and power | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Electric energy sales - other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Bank fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,067 | 12,058 | 36,370 | 36,851 |
Bank | Other sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 0 | 0 | 0 | 0 |
Bank | Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 85,636 | 68,417 | 246,856 | 191,228 |
Bank | Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 3,271 | 936 | 8,490 | 3,771 |
Bank | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5,016 | 4,760 | 13,361 | 7,208 |
Total revenues from other sources | 896 | 55 | 1,179 | 178 |
Revenues | 5,912 | 4,815 | 14,540 | 7,386 |
Other | Services/goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Services/goods transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5,016 | 4,760 | 13,361 | 7,208 |
Other | Electric energy sales - residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Electric energy sales - commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Electric energy sales - large light and power | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Electric energy sales - other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Bank fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Other sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5,016 | 4,760 | 13,361 | 7,208 |
Other | Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 0 | 0 | 0 | 0 |
Other | Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 0 | 0 | 0 | 0 |
Other | Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | 0 | 0 | 0 | 0 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from other sources | $ 896 | $ 55 | $ 1,179 | $ 178 |
Retirement benefits - Narrative
Retirement benefits - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Retirement benefits | |||
Contributions made to defined benefit plans | $ 6 | $ 32 | |
Contributions expected to be paid in current year | 8 | $ 43 | |
Expected payments for remainder of fiscal year | 3 | 2 | |
Retirement benefits expense | $ 33 | 35 | |
Number of years for which regulatory asset/liability for each utility will be amortized, beginning with respective utility's next rate case (in years) | 5 years | ||
Defined contribution plan, expenses recognized | $ 7 | 6.5 | |
Cash contributions by the employer to defined contribution plan | 7.6 | 5.4 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Retirement benefits | |||
Contributions made to defined benefit plans | 6 | 31 | |
Contributions expected to be paid in current year | 8 | 42 | |
Expected payments for remainder of fiscal year | 1 | $ 1 | |
Retirement benefits expense | 32 | 34 | |
Defined contribution plan, expenses recognized | 4.3 | 2.9 | |
Cash contributions by the employer to defined contribution plan | $ 4.3 | $ 2.9 |
Retirement benefits - Component
Retirement benefits - Components of Net Periodic Benefit Cost for Consolidated HEI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pension benefits | ||||
Defined Benefit Plan | ||||
Service cost | $ 11,418 | $ 18,831 | $ 34,210 | $ 58,478 |
Interest cost | 26,022 | 20,274 | 77,265 | 59,895 |
Expected return on plan assets | (35,238) | (35,163) | (105,630) | (105,827) |
Amortization of net prior period gain | 0 | 0 | 0 | 0 |
Amortization of net actuarial (gain) losses | 138 | 7,782 | 515 | 20,376 |
Net periodic pension/benefit cost (return) | 2,340 | 11,724 | 6,360 | 32,922 |
Impact of PUC D&Os | 17,663 | 8,758 | 53,929 | 27,861 |
Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) | 20,003 | 20,482 | 60,289 | 60,783 |
Other benefits | ||||
Defined Benefit Plan | ||||
Service cost | 385 | 624 | 1,072 | 1,937 |
Interest cost | 2,075 | 1,593 | 6,389 | 4,868 |
Expected return on plan assets | (3,426) | (3,394) | (10,236) | (10,189) |
Amortization of net prior period gain | (218) | (232) | (656) | (696) |
Amortization of net actuarial (gain) losses | (518) | (3) | (1,416) | (9) |
Net periodic pension/benefit cost (return) | (1,702) | (1,412) | (4,847) | (4,089) |
Impact of PUC D&Os | 1,536 | 1,289 | 4,385 | 3,725 |
Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) | (166) | (123) | (462) | (364) |
Hawaiian Electric Company, Inc. and Subsidiaries | Pension benefits | ||||
Defined Benefit Plan | ||||
Service cost | 11,071 | 18,248 | 33,108 | 56,883 |
Interest cost | 24,116 | 18,850 | 71,513 | 55,773 |
Expected return on plan assets | (33,029) | (33,314) | (98,972) | (100,405) |
Amortization of net prior period gain | 0 | 0 | 0 | 0 |
Amortization of net actuarial (gain) losses | (16) | 7,519 | 21 | 19,769 |
Net periodic pension/benefit cost (return) | 2,142 | 11,303 | 5,670 | 32,020 |
Impact of PUC D&Os | 17,663 | 8,758 | 53,929 | 27,861 |
Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) | 19,805 | 20,061 | 59,599 | 59,881 |
Hawaiian Electric Company, Inc. and Subsidiaries | Other benefits | ||||
Defined Benefit Plan | ||||
Service cost | 380 | 617 | 1,060 | 1,915 |
Interest cost | 1,981 | 1,525 | 6,107 | 4,670 |
Expected return on plan assets | (3,374) | (3,343) | (10,081) | (10,035) |
Amortization of net prior period gain | (218) | (232) | (654) | (694) |
Amortization of net actuarial (gain) losses | (503) | 0 | (1,370) | 0 |
Net periodic pension/benefit cost (return) | (1,734) | (1,433) | (4,938) | (4,144) |
Impact of PUC D&Os | 1,536 | 1,289 | 4,385 | 3,725 |
Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) | $ (198) | $ (144) | $ (553) | $ (419) |
Share-based compensation - Narr
Share-based compensation - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 01, 2014 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based compensation | |||||
Income tax benefit from compensation expense | $ 500,000 | $ 400,000 | $ 1,600,000 | $ 1,500,000 | |
Restricted stock units | |||||
Share-based compensation | |||||
Fair value of vested stock | 3,700,000 | 4,200,000 | |||
Income tax benefit from compensation expense | 800,000 | 600,000 | |||
Unrecognized share based compensation | 5,200,000 | $ 5,200,000 | |||
Weighted average period for recognition of unrecognized compensation cost (in years) | 1 year 10 months 24 days | ||||
Long-term Incentive Plan | |||||
Share-based compensation | |||||
Payment award, low end of range | 0% | ||||
Payment award, high end of range | 200% | ||||
Measurement period for total return to shareholders (in years) | 3 years | ||||
Award performance period (in years) | 3 years | ||||
LTIP linked to TRS | |||||
Share-based compensation | |||||
Fair value of vested stock | $ 0 | 800,000 | |||
Income tax benefit from compensation expense | 100,000 | ||||
Unrecognized share based compensation | 1,600,000 | $ 1,600,000 | |||
Weighted average period for recognition of unrecognized compensation cost (in years) | 1 year 2 months 12 days | ||||
LTIP awards linked to other performance conditions | |||||
Share-based compensation | |||||
Fair value of vested stock | $ 2,900,000 | 3,200,000 | |||
Income tax benefit from compensation expense | 600,000 | $ 400,000 | |||
Unrecognized share based compensation | $ 5,400,000 | $ 5,400,000 | |||
Weighted average period for recognition of unrecognized compensation cost (in years) | 1 year 2 months 12 days | ||||
Equity and Incentive Plan | |||||
Share-based compensation | |||||
Number of additional shares authorized (in shares) | 1,500,000 | ||||
Shares available for future issuance (in shares) | 2,700,000 | 2,700,000 | |||
Number of share issuable upon vesting and achievement of performance goals (in shares) | 700,000 | 700,000 | |||
Nonemployee Director Stock Plan | |||||
Share-based compensation | |||||
Shares available for future grant (in shares) | 168,177 | 168,177 |
Share-based compensation - Shar
Share-based compensation - Share-Based Compensation Expense and Related Income Tax Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based compensation | ||||
Share-based compensation expense | $ 2.4 | $ 1.7 | $ 8.3 | $ 7.3 |
Income tax benefit | 0.5 | 0.4 | 1.6 | 1.5 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Share-based compensation | ||||
Share-based compensation expense | 0.7 | 0.6 | 2.5 | 2.1 |
Income tax benefit | $ 0.1 | $ 0.1 | $ 0.5 | $ 0.5 |
Share-based compensation - Comm
Share-based compensation - Common Stock Granted to Nonemployee Directors (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based compensation | ||||
Income tax benefit | $ 0.5 | $ 0.4 | $ 1.6 | $ 1.5 |
Common stock | ||||
Share-based compensation | ||||
Shares granted (in shares) | 0 | 965 | 40,450 | 35,720 |
Fair value | $ 0 | $ 0 | $ 1.5 | $ 1.5 |
Income tax benefit | $ 0 | $ 0 | $ 0.4 | $ 0.4 |
Share-based compensation - Chan
Share-based compensation - Changes in Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restricted stock units | ||||
Shares | ||||
Outstanding, beginning of period (in shares) | 199,130 | 208,953 | 182,528 | 233,448 |
Granted (in shares) | 0 | 0 | 100,088 | 98,463 |
Vested (in shares) | 0 | (4,244) | (81,112) | (95,658) |
Forfeited (in shares) | 0 | (16,540) | (2,374) | (48,084) |
Outstanding, end of period (in shares) | 199,130 | 188,169 | 199,130 | 188,169 |
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) | $ 0 | $ 0 | $ 4.2 | $ 4.1 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 41.22 | $ 39.71 | $ 39.75 | $ 38.10 |
Granted (in dollars per share) | 0 | 0 | 42.41 | 41.31 |
Vested (in dollars per share) | 0 | 39.49 | 39.37 | 37.73 |
Forfeited (in dollars per share) | 0 | 39.99 | 41.79 | 39.19 |
Outstanding, end of period (in dollars per share) | $ 41.22 | $ 39.69 | $ 41.22 | $ 39.69 |
LTIP linked to TRS | ||||
Shares | ||||
Outstanding, beginning of period (in shares) | 79,284 | 76,730 | 71,574 | 90,974 |
Granted (in shares) | 0 | 0 | 27,123 | 26,469 |
Vested (in shares) | 0 | 0 | (18,691) | (29,042) |
Forfeited (in shares) | 0 | (4,829) | (722) | (16,500) |
Outstanding, end of period (in shares) | 79,284 | 71,901 | 79,284 | 71,901 |
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) | $ 0 | $ 0 | $ 1.5 | $ 1.5 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 50.28 | $ 47.74 | $ 47.67 | $ 42.86 |
Granted (in dollars per share) | 0 | 0 | 55.98 | 54.92 |
Vested (in dollars per share) | 0 | 0 | 48.62 | 41.07 |
Forfeited (in dollars per share) | 0 | 48.52 | 48.92 | 44.33 |
Outstanding, end of period (in dollars per share) | $ 50.28 | $ 47.69 | $ 50.28 | $ 47.69 |
LTIP awards linked to other performance conditions | ||||
Shares | ||||
Outstanding, beginning of period (in shares) | 357,477 | 293,711 | 309,589 | 306,342 |
Granted (in shares) | 0 | 0 | 108,499 | 105,860 |
Vested (in shares) | 0 | 0 | (62,778) | (71,807) |
Increase above target (in shares) | 4,277 | 0 | 10,278 | 0 |
Forfeited (in shares) | 0 | (19,316) | (3,834) | (66,000) |
Outstanding, end of period (in shares) | 361,754 | 274,395 | 361,754 | 274,395 |
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) | $ 0 | $ 0 | $ 4.6 | $ 4.4 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 38.78 | $ 39.91 | $ 39.50 | $ 38.42 |
Granted (in dollars per share) | 0 | 0 | 42.41 | 41.31 |
Vested (in dollars per share) | 0 | 0 | 48.07 | 37.68 |
Increase above target (in dollars per share) | 38.02 | 0 | 37.77 | 0 |
Forfeited (in dollars per share) | 0 | 38.60 | 43.53 | 37.31 |
Outstanding, end of period (in dollars per share) | $ 39.17 | $ 40 | $ 39.17 | $ 40 |
Share-based compensation - Fair
Share-based compensation - Fair Value Assumptions (Details) - LTIP linked to TRS - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Risk-free interest rate | 4.19% | 1.71% |
Expected life in years | 3 years | 3 years |
Expected volatility | 33.10% | 31% |
Range of expected volatility for Peer Group, minimum rate | 28.70% | 25.40% |
Range of expected volatility for Peer Group, maximum rate | 38.80% | 76.70% |
Grant date fair value (in dollars per share) | $ 55.98 | $ 54.92 |
Income taxes (Details)
Income taxes (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Contingency [Line Items] | |
Effective income tax, percent | 20% |
Hawaiian Electric Company, Inc. and Subsidiaries | |
Income Tax Contingency [Line Items] | |
Effective income tax, percent | 22% |
Cash flows (Details)
Cash flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Supplemental disclosures of cash flow information | ||
Interest paid to non-affiliates, net of amounts capitalized | $ 104 | $ 59 |
Income taxes paid (including refundable credits) | 28 | 26 |
Income taxes refunded (including refundable credits) | 1 | 2 |
Supplemental disclosures of noncash activities | ||
Estimated fair value of noncash contributions in aid of construction (investing) | 9 | 6 |
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 45 | 34 |
Increase related to an acquisition (investing) | 0 | 15 |
Right-of-use assets obtained in exchange for finance lease obligations (financing) | 76 | 48 |
Right-of-use assets obtained in exchange for operating lease obligations (investing) | 1 | 48 |
Property, plant, equipment and other assets received in exchange for the assumption of debt associated with a business acquisition (investing) | 0 | 68 |
Debt, lease liabilities and other liabilities assumed in business acquisition (financing) | 0 | 68 |
Common stock issued (gross) for director and executive/management compensation (financing) | 8 | 10 |
Obligations to fund low income housing investments (investing) | 7 | 9 |
Loans transferred from held for investment to held for sale (investing) | 95 | 0 |
Transfer of retail repurchase agreements to deposit liabilities (financing) | 98 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Supplemental disclosures of cash flow information | ||
Interest paid to non-affiliates, net of amounts capitalized | 45 | 40 |
Income taxes paid (including refundable credits) | 38 | 46 |
Income taxes refunded (including refundable credits) | 2 | 0 |
Supplemental disclosures of noncash activities | ||
Estimated fair value of noncash contributions in aid of construction (investing) | 9 | 6 |
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 43 | 31 |
Increase related to an acquisition (investing) | 0 | 15 |
Right-of-use assets obtained in exchange for finance lease obligations (financing) | 76 | 48 |
Right-of-use assets obtained in exchange for operating lease obligations (investing) | $ 0 | $ 44 |
Fair value measurements - Carry
Fair value measurements - Carrying or Notional Amount, Fair Value and Placement in the Fair Value Hierarchy of the Company’s Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial assets | ||
Available-for-sale investment securities | $ 1,266,412 | $ 1,429,667 |
Held-to-maturity investment securities | 1,052,221 | |
Financial liabilities | ||
Short-term borrowings—other than bank | 0 | 172,568 |
Other bank borrowings | 750,000 | 695,120 |
Carrying or notional amount | ||
Financial assets | ||
Available-for-sale investment securities | 1,266,412 | 1,429,667 |
Held-to-maturity investment securities | 1,212,005 | 1,251,747 |
Loans, net | 6,116,811 | 5,907,514 |
Mortgage servicing rights | 8,376 | 9,047 |
Derivative assets | 19,044 | 16,220 |
Financial liabilities | ||
Deposit liabilities | 1,050,692 | 611,718 |
Short-term borrowings—other than bank | 172,568 | |
Other bank borrowings | 750,000 | 695,120 |
Long-term debt, net | 2,944,589 | 2,384,980 |
Derivative liabilities | 22,949 | 22,949 |
Carrying or notional amount | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Short-term borrowings | 87,967 | |
Long-term debt, net | 2,034,040 | 1,684,816 |
Estimated fair value | ||
Financial assets | ||
Available-for-sale investment securities | 1,266,412 | 1,429,667 |
Held-to-maturity investment securities | 1,052,221 | 1,150,971 |
Loans, net | 5,543,986 | 5,454,202 |
Mortgage servicing rights | 18,867 | 17,646 |
Derivative assets | 1,365 | 1,348 |
Financial liabilities | ||
Deposit liabilities | 1,035,501 | 597,617 |
Short-term borrowings—other than bank | 172,568 | |
Other bank borrowings | 743,366 | 695,095 |
Long-term debt, net | 2,120,573 | 2,122,605 |
Derivative liabilities | 1,344 | 472 |
Estimated fair value | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Short-term borrowings | 87,967 | |
Long-term debt, net | 1,400,901 | 1,487,496 |
Estimated fair value | Quoted prices in active markets for identical assets (Level 1) | ||
Financial assets | ||
Available-for-sale investment securities | 0 | 0 |
Held-to-maturity investment securities | 0 | 0 |
Loans, net | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Derivative assets | 15 | 18 |
Financial liabilities | ||
Deposit liabilities | 0 | 0 |
Short-term borrowings—other than bank | 0 | |
Other bank borrowings | 0 | 0 |
Long-term debt, net | 0 | 0 |
Derivative liabilities | 0 | 0 |
Estimated fair value | Quoted prices in active markets for identical assets (Level 1) | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Short-term borrowings | 0 | |
Long-term debt, net | 0 | 0 |
Estimated fair value | Significant other observable inputs (Level 2) | ||
Financial assets | ||
Available-for-sale investment securities | 1,251,918 | 1,414,765 |
Held-to-maturity investment securities | 1,052,221 | 1,150,971 |
Loans, net | 2,174 | 821 |
Mortgage servicing rights | 0 | 0 |
Derivative assets | 1,350 | 1,330 |
Financial liabilities | ||
Deposit liabilities | 1,035,501 | 597,617 |
Short-term borrowings—other than bank | 172,568 | |
Other bank borrowings | 743,366 | 695,095 |
Long-term debt, net | 2,120,573 | 2,122,605 |
Derivative liabilities | 1,344 | 472 |
Estimated fair value | Significant other observable inputs (Level 2) | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Short-term borrowings | 87,967 | |
Long-term debt, net | 1,400,901 | 1,487,496 |
Estimated fair value | Significant unobservable inputs (Level 3) | ||
Financial assets | ||
Available-for-sale investment securities | 14,494 | 14,902 |
Held-to-maturity investment securities | 0 | 0 |
Loans, net | 5,541,812 | 5,453,381 |
Mortgage servicing rights | 18,867 | 17,646 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Deposit liabilities | 0 | 0 |
Short-term borrowings—other than bank | 0 | |
Other bank borrowings | 0 | 0 |
Long-term debt, net | 0 | 0 |
Derivative liabilities | 0 | 0 |
Estimated fair value | Significant unobservable inputs (Level 3) | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Short-term borrowings | 0 | |
Long-term debt, net | $ 0 | $ 0 |
Fair value measurements - Asset
Fair value measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | $ 1,266,412 | $ 1,429,667 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | ||
Derivative assets | ||
Derivative assets | 15 | 18 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Bank | Interest rate lock commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Bank | Forward commitments | ||
Derivative assets | ||
Derivative assets | 15 | 18 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Interest rate swap (Other segment) | Interest rate swap | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | U.S. Treasury and federal agency obligations | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Corporate bonds | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Mortgage revenue bonds | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | ||
Derivative assets | ||
Derivative assets | 1,350 | 1,330 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | 1,251,918 | 1,414,765 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Bank | Interest rate lock commitments | ||
Derivative assets | ||
Derivative assets | 54 | 9 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Bank | Forward commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Interest rate swap (Other segment) | Interest rate swap | ||
Derivative assets | ||
Derivative assets | 1,296 | 1,321 |
Derivative liabilities | ||
Derivative liabilities | 1,344 | 472 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | 1,145,167 | 1,292,968 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | U.S. Treasury and federal agency obligations | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | 75,000 | 81,063 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Corporate bonds | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | 31,751 | 40,734 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Mortgage revenue bonds | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | 14,494 | 14,902 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Bank | Interest rate lock commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Bank | Forward commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Interest rate swap (Other segment) | Interest rate swap | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | U.S. Treasury and federal agency obligations | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Corporate bonds | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Mortgage revenue bonds | Bank | ||
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | $ 14,494 | $ 14,902 |
Fair value measurements - Chang
Fair value measurements - Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Mortgage revenue bonds - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 14,630 | $ 15,165 | $ 14,902 | $ 15,427 |
Principal payments received | (136) | (132) | (408) | (394) |
Purchases | 0 | 0 | 0 | 0 |
Unrealized gain (loss) included in other comprehensive income | 0 | 0 | 0 | 0 |
Ending balance | $ 14,494 | $ 15,033 | $ 14,494 | $ 15,033 |
Fair value measurements - Narra
Fair value measurements - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Fair value measurements on a nonrecurring basis | American Savings Bank (ASB) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Adjustments to fair value of loans held for sale | $ 0 | $ 0 |
Weighted average discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage revenue bonds, measurement input | 0.0565 |