Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | 110,302,667 | |
Entity Central Index Key | 0000354707 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
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 | 2024 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
Revenues | $ 897,158 | $ 928,237 |
Expenses | ||
Total expenses | 820,739 | 834,719 |
Operating income (loss) | ||
Total operating income | 76,419 | 93,518 |
Retirement defined benefits credit—other than service costs | 1,282 | 1,152 |
Interest expense, net—other than on deposit liabilities and other bank borrowings | (31,591) | (28,798) |
Allowance for borrowed funds used during construction | 1,386 | 1,131 |
Allowance for equity funds used during construction | 3,640 | 3,301 |
Interest income | 3,133 | 0 |
Income before income taxes | 54,269 | 70,304 |
Income taxes | 11,674 | 15,110 |
Net income (loss) | 42,595 | 55,194 |
Preferred stock dividends of subsidiaries | 473 | 473 |
Net income for common stock | $ 42,122 | $ 54,721 |
Basic earnings per common share (in dollars per share) | $ 0.38 | $ 0.50 |
Diluted earnings per common share (in dollars per share) | $ 0.38 | $ 0.50 |
Weighted-average number of common shares outstanding (in shares) | 110,218 | 109,514 |
Net effect of potentially dilutive shares (share-based compensation programs) (in shares) | 258 | 311 |
Weighted-average shares assuming dilution (in shares) | 110,476 | 109,825 |
Electric utility | ||
Revenues | ||
Revenues | $ 788,578 | $ 830,361 |
Expenses | ||
Total expenses | 725,223 | 754,486 |
Operating income (loss) | ||
Total operating income | 63,355 | 75,875 |
Income before income taxes | 50,900 | 61,108 |
Income taxes | 11,180 | 13,600 |
Net income (loss) | 39,720 | 47,508 |
Preferred stock dividends of subsidiaries | 499 | 499 |
Net income for common stock | 39,221 | 47,009 |
Bank | ||
Revenues | ||
Revenues | 105,144 | 93,857 |
Expenses | ||
Total expenses | 79,612 | 70,337 |
Operating income (loss) | ||
Total operating income | 25,532 | 23,520 |
Income before income taxes | 25,813 | 23,707 |
Income taxes | 4,879 | 5,145 |
Net income (loss) | 20,934 | 18,562 |
Preferred stock dividends of subsidiaries | 0 | 0 |
Net income for common stock | 20,934 | 18,562 |
Other | ||
Revenues | ||
Revenues | 3,436 | 4,019 |
Expenses | ||
Total expenses | 15,904 | 9,896 |
Operating income (loss) | ||
Total operating income | (12,468) | (5,877) |
Income before income taxes | (22,444) | (14,511) |
Income taxes | (4,385) | (3,635) |
Net income (loss) | (18,059) | (10,876) |
Preferred stock dividends of subsidiaries | (26) | (26) |
Net income for common stock | $ (18,033) | $ (10,850) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income for common stock | $ 42,122 | $ 54,721 |
Net unrealized gains (losses) on available-for-sale investment securities: | ||
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, net of taxes of $(4,975) and $6,079, respectively | (13,589) | 16,605 |
Amortization of unrealized holding losses on held-to-maturity securities, net of taxes of $1,129 and $1,346, respectively | 3,086 | 3,677 |
Derivatives qualifying as cash flow hedges: | ||
Unrealized interest rate hedging gains (losses) arising during the period, net of taxes of $256 and $65, respectively | 740 | 186 |
Reclassification adjustment to net income, net of taxes of $(16) and $(17), respectively | (48) | (48) |
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 of $(154) and $(122), respectively | (449) | (357) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $159 and $147, respectively | 459 | 425 |
Other comprehensive loss, net of taxes | (9,801) | 20,488 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ 32,321 | $ 75,209 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net unrealized gains (losses) on available-for-sale investment securities: | ||
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, tax | $ (4,975) | $ 6,079 |
Amortization of unrealized holding losses on held-to-maturity securities, net of taxes | 1,129 | 1,346 |
Derivatives qualifying as cash flow hedges: | ||
Unrealized interest rate hedging arising during the period, tax | 256 | 65 |
Reclassification adjustment for net unrealized losses included in net income, tax | (16) | (17) |
Retirement benefit plans: | ||
Adjustment for amortization of prior service credit and net gains recognized during the period in net periodic benefit cost, tax | (154) | (122) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, tax | $ (159) | $ (147) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and cash equivalents | $ 485,192 | $ 679,546 |
Restricted cash | 17,531 | 15,028 |
Accounts receivable and unbilled revenues, net | 469,298 | 575,176 |
Available-for-sale investment securities, at fair value | 1,091,889 | 1,136,439 |
Held-to-maturity investment securities, at amortized cost | 1,191,074 | 1,201,314 |
Stock in Federal Home Loan Bank, at cost | 32,489 | 14,728 |
Loans held for investment, net | 6,045,665 | 6,106,438 |
Loans held for sale, at lower of cost or fair value | 2,923 | 15,168 |
Property, plant and equipment, net of accumulated depreciation of $3,374,016 and $3,317,759 at March 31, 2024 and December 31, 2023, respectively | 6,183,503 | 6,150,126 |
Operating lease right-of-use assets | 91,182 | 94,905 |
Regulatory assets | 315,067 | 294,804 |
Other | 915,205 | 877,959 |
Goodwill | 82,190 | 82,190 |
Total assets | 16,923,208 | 17,243,821 |
Liabilities | ||
Accounts payable | 248,806 | 247,462 |
Interest and dividends payable | 61,452 | 51,206 |
Deposit liabilities | 8,005,064 | 8,145,778 |
Other bank borrowings | 593,000 | 750,000 |
Long-term debt, net—other than bank | 2,837,875 | 2,842,429 |
Deferred income taxes | 299,012 | 297,954 |
Operating lease liabilities | 99,611 | 103,900 |
Finance lease liabilities | 350,290 | 339,040 |
Regulatory liabilities | 1,159,811 | 1,150,690 |
Defined benefit pension and other postretirement benefit plans liability | 84,554 | 82,879 |
Other | 772,060 | 853,349 |
Total liabilities | 14,511,535 | 14,864,687 |
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: 110,302,667 shares and 110,151,798 shares at March 31, 2024 and December 31, 2023, respectively | 1,707,689 | 1,707,471 |
Retained earnings | 968,842 | 926,720 |
Accumulated other comprehensive loss, net of tax benefits | (299,151) | (289,350) |
Total shareholders’ equity | 2,377,380 | 2,344,841 |
Total liabilities and shareholders’ equity | $ 16,923,208 | $ 17,243,821 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Property, plant and equipment, accumulated depreciation | $ 3,374,016 | $ 3,317,759 |
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) | 110,302,667 | 110,151,798 |
Common stock, shares outstanding (in shares) | 110,302,667 | 110,151,798 |
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, 2022 | 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, 2023 | 110,151,798 | 110,152,000 | ||
Beginning balance at Dec. 31, 2023 | $ 2,344,841 | $ 1,707,471 | 926,720 | (289,350) |
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | 42,122 | 42,122 | ||
Other comprehensive (loss) income, net of tax benefits | (9,801) | (9,801) | ||
Share-based expenses and other, net (in shares) | 151,000 | |||
Share-based expenses and other, net | $ 218 | $ 218 | ||
Ending balance (in shares) at Mar. 31, 2024 | 110,302,667 | 110,303,000 | ||
Ending balance at Mar. 31, 2024 | $ 2,377,380 | $ 1,707,689 | $ 968,842 | $ (299,151) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) | 3 Months Ended |
Mar. 31, 2023 $ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Common stock dividends (in dollars per share) | $ 0.36 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net income | $ 42,595 | $ 55,194 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation of property, plant and equipment | 68,757 | 66,508 |
Other amortization | 12,093 | 10,362 |
Provision for credit losses | (2,159) | 1,175 |
Loans originated, held for sale | (25,318) | (5,450) |
Proceeds from sale of loans, held for sale | 26,450 | 5,662 |
Gain on sale of loans, net | (425) | (130) |
Deferred income tax expense (benefit) | 1,826 | (1,076) |
Share-based compensation expense | 1,288 | 2,031 |
Allowance for equity funds used during construction | (3,640) | (3,301) |
Other | 2,091 | (988) |
Changes in assets and liabilities | ||
Decrease in accounts receivable and unbilled revenues, net | 138,369 | 82,423 |
Decrease (increase) in fuel oil stock | (14,025) | 33,429 |
Increase in materials and supplies | (1,329) | (4,548) |
Increase in regulatory assets | (17,178) | (8,898) |
Increase in regulatory liabilities | 2,909 | 11,551 |
Increase in accounts, interest and dividends payable | 8,462 | 24,748 |
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | (11,628) | (47,305) |
Decrease in defined benefit pension and other postretirement benefit plans liability | (930) | (1,950) |
Change in other assets and liabilities | (103,589) | (38,485) |
Net cash provided by operating activities | 124,619 | 180,952 |
Cash flows from investing activities | ||
Principal repayments on available-for-sale investment securities | 25,615 | 32,484 |
Proceeds from repayments or maturities of held-to-maturity investment securities | 13,752 | 17,938 |
Purchase of stock from Federal Home Loan Bank | (21,856) | (35,960) |
Redemption of stock from Federal Home Loan Bank | 4,095 | 52,520 |
Net decrease (increase) in loans held for investment | 42,853 | (68,871) |
Proceeds from sale of commercial loans | 31,067 | 0 |
Purchase of loans held for investment | 0 | (13,012) |
Capital expenditures | (99,550) | (124,297) |
Contributions to low income housing investments | 0 | (418) |
Other | (1,568) | 2,148 |
Net cash used in investing activities | (5,592) | (137,468) |
Cash flows from financing activities | ||
Net increase (decrease) in deposit liabilities | (140,714) | 60,905 |
Net decrease in short-term borrowings with original maturities of three months or less | 0 | (88,666) |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 73,000 | (564,430) |
Proceeds from issuance of short-term debt | 0 | 65,000 |
Proceeds from issuance of other bank borrowings | 320,000 | 550,000 |
Repayment of other bank borrowings | (550,000) | 0 |
Proceeds from issuance of long-term debt | 4,673 | 150,000 |
Repayment of long-term debt | (8,268) | (53,878) |
Withheld shares for employee taxes on vested share-based compensation | (1,070) | (2,338) |
Common stock dividends | 0 | (39,446) |
Preferred stock dividends of subsidiaries | (473) | (473) |
Other | (8,026) | (5,535) |
Net cash provided by (used in) financing activities | (310,878) | 71,139 |
Net increase in cash, cash equivalents and restricted cash | (191,851) | 114,623 |
Cash, cash equivalents and restricted cash, beginning of period | 694,574 | 204,927 |
Cash, cash equivalents and restricted cash, end of period | 502,723 | 319,550 |
Less: Restricted cash | (17,531) | (4,216) |
Cash and cash equivalents | $ 485,192 | $ 315,334 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Income (unaudited) - HECO - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
Revenues | $ 897,158 | $ 928,237 |
Expenses | ||
Total expenses | 820,739 | 834,719 |
Total operating income | 76,419 | 93,518 |
Allowance for equity funds used during construction | 3,640 | 3,301 |
Retirement defined benefits credit—other than service costs | 1,282 | 1,152 |
Allowance for borrowed funds used during construction | 1,386 | 1,131 |
Interest income | 3,133 | 0 |
Income before income taxes | 54,269 | 70,304 |
Income taxes | 11,674 | 15,110 |
Net income (loss) | 42,595 | 55,194 |
Preferred stock dividends of Hawaiian Electric | 473 | 473 |
Net income for common stock | 42,122 | 54,721 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Revenues | ||
Revenues | 788,578 | 830,361 |
Expenses | ||
Fuel oil | 284,296 | 334,097 |
Purchased power | 159,817 | 152,761 |
Other operation and maintenance | 143,890 | 128,316 |
Depreciation | 62,812 | 60,927 |
Taxes, other than income taxes | 74,408 | 78,385 |
Total expenses | 725,223 | 754,486 |
Total operating income | 63,355 | 75,875 |
Allowance for equity funds used during construction | 3,640 | 3,301 |
Retirement defined benefits credit—other than service costs | 1,072 | 1,047 |
Interest expense and other charges, net | (19,985) | (20,246) |
Allowance for borrowed funds used during construction | 1,386 | 1,131 |
Interest income | 1,432 | 0 |
Income before income taxes | 50,900 | 61,108 |
Income taxes | 11,180 | 13,600 |
Net income | 39,720 | 47,508 |
Preferred stock dividends of subsidiaries | 229 | 229 |
Net income (loss) | 39,491 | 47,279 |
Preferred stock dividends of Hawaiian Electric | 270 | 270 |
Net income for common stock | $ 39,221 | $ 47,009 |
Condensed Consolidated Statem_8
Condensed Consolidated Statements of Comprehensive Income (unaudited) - HECO - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net income for common stock | $ 42,122 | $ 54,721 |
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 of $(176) and $(163), respectively | (449) | (357) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $159 and $147, respectively | 459 | 425 |
Other comprehensive loss, net of taxes | (9,801) | 20,488 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 32,321 | 75,209 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Net income for common stock | 39,221 | 47,009 |
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 of $(176) and $(163), respectively | (508) | (470) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $159 and $147, respectively | 459 | 425 |
Other comprehensive loss, net of taxes | (49) | (45) |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ 39,172 | $ 46,964 |
Condensed Consolidated Statem_9
Condensed Consolidated Statements of Comprehensive Income (unaudited) - HECO (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Retirement benefit plans: | ||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax | $ (154) | $ (122) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, tax | 159 | 147 |
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 | (176) | (163) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, tax | $ 159 | $ 147 |
Condensed Consolidated Balanc_3
Condensed Consolidated Balance Sheets (unaudited) - HECO - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Utility property, plant and equipment | ||
Total property, plant and equipment, net | $ 6,183,503 | $ 6,150,126 |
Current assets | ||
Cash and cash equivalents | 485,192 | 679,546 |
Restricted cash | 17,531 | 15,028 |
Other long-term assets | ||
Operating lease right-of-use assets | 91,182 | 94,905 |
Total assets | 16,923,208 | 17,243,821 |
Capitalization | ||
Retained earnings | 968,842 | 926,720 |
Accumulated other comprehensive income, net of taxes-retirement benefit plans | (299,151) | (289,350) |
Common stock equity | 2,377,380 | 2,344,841 |
Cumulative preferred stock — not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies (Notes 2 and 4) | ||
Current liabilities | ||
Interest and preferred dividends payable | 61,452 | 51,206 |
Deferred credits and other liabilities | ||
Deferred income taxes | 299,012 | 297,954 |
Total liabilities and shareholders’ equity | 16,923,208 | 17,243,821 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Utility property, plant and equipment | ||
Land | 52,019 | 52,098 |
Plant and equipment | 8,302,449 | 8,232,810 |
Right-of-use assets - finance lease | 354,401 | 342,174 |
Less accumulated depreciation | (3,249,089) | (3,197,514) |
Construction in progress | 330,743 | 320,223 |
Utility property, plant and equipment, net | 5,790,523 | 5,749,791 |
Nonutility property, plant and equipment, less accumulated depreciation of $41 and $40 as of March 31, 2024 and December 31, 2023, respectively | 6,941 | 6,942 |
Total property, plant and equipment, net | 5,797,464 | 5,756,733 |
Current assets | ||
Cash and cash equivalents | 129,754 | 106,077 |
Restricted cash | 2,000 | 2,000 |
Customer accounts receivable, net | 209,999 | 244,309 |
Accrued unbilled revenues, net | 171,455 | 185,644 |
Other accounts receivable, net | 38,025 | 111,519 |
Fuel oil stock, at average cost | 161,433 | 148,237 |
Materials and supplies, at average cost | 115,719 | 114,433 |
Prepayments and other | 72,025 | 58,491 |
Regulatory assets | 82,503 | 68,453 |
Total current assets | 982,913 | 1,039,163 |
Other long-term assets | ||
Operating lease right-of-use assets | 68,217 | 71,877 |
Regulatory assets | 232,564 | 226,351 |
Other | 193,704 | 189,430 |
Total other long-term assets | 494,485 | 487,658 |
Total assets | 7,274,862 | 7,283,554 |
Capitalization | ||
Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 17,854,278 shares at March 31, 2024 and December 31, 2023) | 119,048 | 119,048 |
Premium on capital stock | 810,955 | 810,955 |
Retained earnings | 1,502,479 | 1,476,258 |
Accumulated other comprehensive income, net of taxes-retirement benefit plans | 2,800 | 2,849 |
Common stock equity | 2,435,282 | 2,409,110 |
Cumulative preferred stock — not subject to mandatory redemption | 34,293 | 34,293 |
Long-term debt, net | 1,886,028 | 1,934,277 |
Total capitalization | 4,355,603 | 4,377,680 |
Commitments and contingencies (Notes 2 and 4) | ||
Current liabilities | ||
Current portion of operating lease liabilities | 16,234 | 16,617 |
Current portion of long-term debt, net | 46,931 | 0 |
Accounts payable | 198,636 | 191,040 |
Interest and preferred dividends payable | 43,926 | 22,882 |
Taxes accrued, including revenue taxes | 282,446 | 291,942 |
Regulatory liabilities | 26,149 | 36,559 |
Other | 108,006 | 171,436 |
Total current liabilities | 722,328 | 730,476 |
Deferred credits and other liabilities | ||
Operating lease liabilities | 58,399 | 62,098 |
Finance lease liabilities | 341,141 | 330,978 |
Deferred income taxes | 403,761 | 399,001 |
Regulatory liabilities | 1,133,662 | 1,114,131 |
Unamortized tax credits | 81,771 | 84,312 |
Defined benefit pension liability | 62,331 | 60,671 |
Other | 115,866 | 124,207 |
Total deferred credits and other liabilities | 2,196,931 | 2,175,398 |
Total liabilities and shareholders’ equity | $ 7,274,862 | $ 7,283,554 |
Condensed Consolidated Balanc_4
Condensed Consolidated Balance Sheets (unaudited) - HECO (parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Shareholders’ equity | ||
Common stock, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares outstanding (in shares) | 110,302,667 | 110,151,798 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Utility property, plant and equipment | ||
Accumulated depreciation on other property, plant and equipment | $ 41 | $ 40 |
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, 2022 | 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, 2023 | 110,151,798 | 110,152,000 | 17,854,000 | ||||||
Beginning balance at Dec. 31, 2023 | $ 2,344,841 | 2,409,110 | $ 1,707,471 | $ 119,048 | 810,955 | 926,720 | 1,476,258 | (289,350) | 2,849 |
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 42,122 | 39,221 | 42,122 | 39,221 | |||||
Other comprehensive (loss) income, net of tax benefits | $ (9,801) | (49) | (9,801) | (49) | |||||
Common stock dividends | (13,000) | (13,000) | |||||||
Ending balance (in shares) at Mar. 31, 2024 | 110,302,667 | 110,303,000 | 17,854,000 | ||||||
Ending balance at Mar. 31, 2024 | $ 2,377,380 | $ 2,435,282 | $ 1,707,689 | $ 119,048 | $ 810,955 | $ 968,842 | $ 1,502,479 | $ (299,151) | $ 2,800 |
Condensed Consolidated State_11
Condensed Consolidated Statements of Cash Flows (unaudited) - HECO - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation of property, plant and equipment | $ 68,757 | $ 66,508 |
Other amortization | 12,093 | 10,362 |
Deferred income tax expense (benefit) | 1,826 | (1,076) |
Allowance for equity funds used during construction | (3,640) | (3,301) |
Other | 2,091 | (988) |
Changes in assets and liabilities | ||
Decrease (increase) in fuel oil stock | (14,025) | 33,429 |
Increase in regulatory assets | (17,178) | (8,898) |
Increase in regulatory liabilities | 2,909 | 11,551 |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (11,628) | (47,305) |
Decrease in defined benefit pension and other postretirement benefit plans liability | (930) | (1,950) |
Change in other assets and liabilities | (103,589) | (38,485) |
Net cash provided by operating activities | 124,619 | 180,952 |
Cash flows from investing activities | ||
Capital expenditures | (99,550) | (124,297) |
Other | (1,568) | 2,148 |
Net cash used in investing activities | (5,592) | (137,468) |
Cash flows from financing activities | ||
Common stock dividends | 0 | (39,446) |
Proceeds from issuance of long-term debt | 4,673 | 150,000 |
Net decrease in short-term borrowings from non-affiliates and affiliates with original maturities of three months or less | 0 | (88,666) |
Other | (8,026) | (5,535) |
Net cash provided by (used in) financing activities | (310,878) | 71,139 |
Net increase in cash, cash equivalents and restricted cash | (191,851) | 114,623 |
Cash, cash equivalents and restricted cash, beginning of period | 694,574 | 204,927 |
Cash, cash equivalents and restricted cash, end of period | 502,723 | 319,550 |
Less: Restricted cash | (17,531) | (4,216) |
Cash and cash equivalents | 485,192 | 315,334 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Cash flows from operating activities | ||
Net income | 39,720 | 47,508 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation of property, plant and equipment | 62,812 | 60,927 |
Other amortization | 7,566 | 6,530 |
Deferred income tax expense (benefit) | 1,943 | (3,659) |
State refundable credit | (2,941) | (2,874) |
Bad debt expense | 1,526 | 1,539 |
Allowance for equity funds used during construction | (3,640) | (3,301) |
Other | 15 | 350 |
Changes in assets and liabilities | ||
Decrease in accounts receivable | 115,359 | 60,939 |
Decrease in accrued unbilled revenues | 14,216 | 22,659 |
Decrease (increase) in fuel oil stock | (13,196) | 33,947 |
Increase in materials and supplies | (1,286) | (4,525) |
Increase in regulatory assets | (17,178) | (8,898) |
Increase in regulatory liabilities | 2,909 | 11,551 |
Increase in accounts payable | 28,811 | 6,588 |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (11,230) | (45,392) |
Decrease in defined benefit pension and other postretirement benefit plans liability | (287) | (1,837) |
Change in other assets and liabilities | (97,918) | (12,697) |
Net cash provided by operating activities | 127,201 | 169,355 |
Cash flows from investing activities | ||
Capital expenditures | (98,032) | (122,139) |
Other | (1,641) | 1,545 |
Net cash used in investing activities | (99,673) | (120,594) |
Cash flows from financing activities | ||
Common stock dividends | 0 | (32,250) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (499) | (499) |
Proceeds from issuance of long-term debt | 0 | 150,000 |
Net decrease in short-term borrowings from non-affiliates and affiliates with original maturities of three months or less | 0 | (87,967) |
Payments of obligations under finance leases | (1,800) | (575) |
Other | (1,552) | (690) |
Net cash provided by (used in) financing activities | (3,851) | 28,019 |
Net increase in cash, cash equivalents and restricted cash | 23,677 | 76,780 |
Cash, cash equivalents and restricted cash, beginning of period | 108,077 | 39,242 |
Cash, cash equivalents and restricted cash, end of period | 131,754 | 116,022 |
Less: Restricted cash | (2,000) | 0 |
Cash and cash equivalents | $ 129,754 | $ 116,022 |
Basis of presentation
Basis of presentation | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023. 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 March 31, 2024 and December 31, 2023 and the results of their operations and cash flows for the three months ended March 31, 2024 and 2023. 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. Segment Reporting . In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements, primarily through enhanced disclosure requirements of significant segment expenses. These amendments are effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. These amendments apply on a retrospective basis. The Company is currently evaluating the impact of this amendment on the Company’s consolidated financial statements. Income Taxes. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. The amendments are effective for annual periods beginning after December 15, 2024. These amendments apply on a prospective basis with a retrospective option. Early adoption is permitted. The Company is currently evaluating the impact of this amendment on the Company’s consolidated financial statements. Climate-related disclosures . In March 2024, the Securities and Exchange Commission (SEC) issued final climate-related disclosure rules under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors (climate disclosure rules). The rules will require annual disclosure of material greenhouse gas emissions as well as disclosure of governance, risk management and strategy related to material climate-related risks. In addition, the rules require (i) financial statement impacts of severe weather events and other natural conditions; (ii) a roll forward of carbon offset and renewable energy credit balances if material to the Company’s plan to achieve climate-related targets or goals; and (iii) material impacts on estimates and assumptions in the financial statements. The disclosure requirements will begin phasing in for annual periods beginning with calendar year 2025. The Company is currently evaluating the final rule to determine its impact on the Company’s consolidated financial statements. In April 2024, the SEC voluntarily stayed implementation of its climate disclosure rules pending completion of judicial review by the Court of Appeals for the Eighth Circuit. |
Maui windstorm and wildfires
Maui windstorm and wildfires | 3 Months Ended |
Mar. 31, 2024 | |
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 101 confirmed fatalities in Lahaina at this time (the Maui windstorm and wildfires). The Maui windstorm and wildfires were fueled by extreme winds and drought-like conditions in those parts of Maui. The circumstances surrounding the Maui windstorm and wildfires are currently the subject of several investigations. Restoration costs and recoveries. The Utilities are continuing restoration work to rebuild portions of the electric system in Lahaina to ensure safe and reliable power to all West Maui customers. Ongoing restoration efforts include the rebuilding of transmission and distribution lines along former routes in the Lahaina area with the installation of new interim steel poles and electrical equipment. To date, power has been restored to all customers that can have power restored in Lahaina and the rest of West Maui. On December 27, 2023, the Public Utilities Commission of the State of Hawaii (PUC) issued an order authorizing deferred accounting treatment for the Utilities’ incremental non-labor expenses related to the Maui windstorm and wildfires. The deferred accounting treatment applies to certain non-labor expenses incurred from August 8, 2023 through December 31, 2024 that are not already a part of the base rates. The approval pertains only to deferred cost treatment; any cost recovery of deferred costs will be the subject of a separate application(s). As of March 31, 2024, the Utilities have deferred $22.6 million of certain incremental costs related to the Maui windstorm and wildfires to a regulatory asset. While the Utilities plan to seek recovery of damage to covered electrical infrastructure under their property 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. Tort-related legal claims . As of May 9, 2024, HEI and the Utilities have each been named in approximately 400 lawsuits related to the Maui windstorm and wildfires. These civil and class action lawsuits 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, telecommunications companies, and oil companies (collectively “tort-related legal claims”). One class action is pending in federal court, while the remainder of the cases are pending in Maui and Oahu Circuit Courts. 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, and three other lawsuits were filed by approximately 160 subrogation insurers against HEI, the Utilities, a private landowner, and telecommunications companies. One lawsuit that names HEI, the Utilities, and other defendants also alleges that oil companies contributed to the burning of fossil fuels and caused climate change that led to the Lahaina fire. 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. On March 22, 2024, the Maui Circuit Court set trial dates in six cases concerning the fires in the Upcountry Maui areas for September 9, 2024. On May 3, 2024, the Maui Circuit Court set trial dates in four cases concerning the Lahaina fire for November 18, 2024. Mediation discussions have commenced. No trial dates have been set in cases pending in the Oahu Circuit Court or in federal court. While the investigations into the circumstances surrounding the Maui windstorm and wildfires are ongoing, various unaffiliated third parties have published estimates of the total economic damage generally ranging from $3.8 billion to $6 billion. These estimates have not been validated by the Company, and they represent gross numbers that do not take into account causation or liability nor attempt to allocate responsibility among the various defendants. As such, these estimates are not intended to provide a range of a reasonably possible loss under ASC Topic 450-20, “Loss Contingencies” attributable to the Company arising from the Maui windstorm and wildfires. In addition, on November 6, 2023, the Hawaii Insurance Division of the State of Hawaii Department of Commerce and Consumer Affairs released preliminary data on Maui windstorm and wildfires claims, and the Hawaii Insurance Division has subsequently provided updated data to include estimated losses for commercial property and business interruption. Through March 31, 2024, the data collected from over 200 insurers indicated estimated total insured losses of $3.1 billion for residential, commercial, personal, and other property, and business interruption. The estimated total losses for insured claims related to residential property includes homeowners insurance, dwelling-fire landlord, condominium unit owner, renters insurance, and other residential property. The estimated total losses do not account for uninsured or underinsured property losses, interest, attorneys’ fees, fire suppression and clean-up costs, evacuation costs, personal injury or wrongful death damages, medical expenses or other costs, such as potential punitive damages, fines or penalties. It is uncertain whether the insured claims reported to the Hawaii Insurance Division are complete, and together with property damage claims unaccounted for, as mentioned above, the total amount of property damage claims could be materially higher than the amount reported by the Hawaii Insurance Division. The Hawaii Insurance Division did not state whether it intends to provide updated information in the future. The Company is actively working with the State of Hawaii and others in the community on solutions for Maui’s recovery, including the compensation of those who suffered losses in the Maui windstorm and wildfires and who are currently named as plaintiffs in the various cases. On November 8, 2023, Hawaii Governor Josh Green announced the One ‘Ohana Initiative (the One ‘Ohana Initiative ) as a collective path forward to recovery from the Maui windstorm and wildfires. The One ‘Ohana Initiative is a new humanitarian aid fund of $175 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 One ‘Ohana Initiative provides an alternative to a lengthy and expensive legal process. Beneficiaries who have lost loved ones are anticipated to receive payments of $1.5 million per decedent, and those who suffered severe injuries are expected to share in a specially allocated pool of compensation. 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 contributed $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. Hawaiian Electric’s contribution to the Initiative was less than half of the total, and Hawaiian Electric's insurance carriers funded 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 One ‘Ohana Initiative is not an admission of guilt or reflection of fault or liability related to the wildfires. Under the One ‘Ohana Initiative , all claimants (except families of missing persons) must submit a completed registration form and registrants who meet the Fund’s eligibility requirements will then be required to complete and submit a claim form. As of May 8, 2024, 12 claim forms and 43 registration forms have been received that relate to death claims and two claim forms and 15 registration forms have been received that relate to physical injury claims. The One ‘Ohana 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, as noted above, the Utilities are unable to reasonably estimate any additional potential loss, or range of loss. The Company believes it is reasonably possible that a loss will be incurred in excess of the $75 million contribution to the One ‘Ohana Initiative and is unable to predict the ultimate outcome or reasonably estimate a range of possible loss from these actions at this time. The Company intends to vigorously defend against the litigation if necessary. 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 settlements, judgments, or costs associated with the litigation or contributions to any potential additional phases of the One ‘Ohana Initiative . If additional liabilities were to be incurred, the loss could be material to the Company’s results of operations, financial positions and cash flows. If any such losses were to be sufficiently high, the Company may not have liquidity or the ability to access liquidity at levels necessary to satisfy such losses. Securities class action and shareholder lawsuits . 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. Plaintiff seeks unspecified monetary damages. On December 7, 2023, the court appointed Daniel Warren as lead plaintiff and Pomerantz LLP as lead plaintiff’s counsel and on January 9, 2024, the court set a briefing schedule requiring defendants to respond to the amended complaint no later than May 7, 2024. On March 8, 2024, the lead plaintiff filed an amended complaint. The Company has filed a motion to dismiss that complaint and 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 does not believe that a loss is probable and any potential loss or range of loss is not reasonably estimable. 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 Hawaii. On December 6, 2023, the case was removed to the United States District Court for the District of Hawaii and captioned Rice v. Connors, et al., No. 1:23-cv-00577-JAO-BMK. On March 14, 2024, the United States District Court remanded the case to the Circuit Court of the First Circuit, State of Hawaii. 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 Hawaii state law breach of fiduciary duty, abuse of control, corporate waste and unjust enrichment claims allegedly arising in connection with the Maui windstorm and wildfires that occurred 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. Pursuant to a schedule agreed upon by the parties and ordered by the United States District Court, defendants are not required to respond to plaintiff’s amended complaint until after the pending motions to remand in the tort litigation are resolved. 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 reasonable estimate of the amount or range of loss, if any, that could result from any unfavorable outcome. Three putative shareholder derivative actions were filed in the United States District Court for the Northern District of California between December 26, 2023 and February 8, 2024, including: Kallaus v. Johns, et al., No. 3:23-cv-06627 (the “Kallaus Action”), Cole v. Johns, et al., No. 3:24-cv-00598 (the “Cole Action”), and Tai v. Seu, et al., No. 3:24-cv-01198 (the “Tai Action”). On March 19, 2024, upon stipulation by the parties, the court consolidated the Kallaus Action, the Cole Action, and the Tai Action under the caption In Re Hawaiian Electric Industries, Inc. and Hawaiian Electric Company, Inc. Derivative Litigation, No. 3:23-cv-06627 (the “Consolidated Derivative Actions”). The Consolidated Derivative Actions are purportedly brought by shareholders of HEI on behalf of nominal defendants HEI and Hawaiian Electric against certain current and former officers and directors of HEI and Hawaiian Electric. Plaintiffs purport to assert both Hawaii state law and federal securities law claims. Plaintiffs assert state law breach of fiduciary duty, corporate waste, and unjust enrichment claims purportedly arising from the Maui windstorm and wildfires that occurred in August 2023 and certain public disclosures. Plaintiffs also assert claims for contribution under Sections 10(b) and 21D of the Exchange Act against certain of HEI’s current and former directors and officers, and claims for violation of Section 14(a) of the Exchange Act against certain of HEI’s current and former directors. Plaintiffs generally allege 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 also broadly claim HEI proxy statements were materially false and misleading for similar reasons. Plaintiffs seek, on behalf of HEI and Hawaiian Electric, unspecified monetary and punitive damages, and equitable relief in the form of changes to HEI’s corporate governance and internal procedures. While the Company has certain obligations to indemnify and/or advance the defendants’ legal fees and costs in connection with this lawsuit, any monetary recovery in the Consolidated Derivative Actions should accrue to the Company. The Company is unable to predict the ultimate outcome and is unable to make a reasonable estimate of the amount or range of loss, if any, that could result from any unfavorable outcome. On April 8, 2024, a putative shareholder derivative action captioned Assad v. Seu, et al., No. 1:24-cv-00164 was filed in the United States District Court for the District of Hawaii. This action is purportedly brought by a shareholder on behalf of nominal defendants HEI and against certain current and former officers and directors of HEI and Hawaiian Electric. Plaintiff purports to assert Hawaii state law claims for breach of fiduciary duty, corporate waste, and unjust enrichment allegedly arising from the Maui windstorm and wildfires that occurred in August 2023 and certain public disclosures. Plaintiff generally 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. Plaintiff seeks, on behalf of HEI, compensatory damages, restitution and equitable relief in the form of changes to HEI’s corporate governance, policies and culture. 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 reasonable estimate of the amount or range of loss, if any, that could result from any unfavorable outcome. Maui windstorm and wildfires costs. Legal costs in connection with the litigation and loss contingencies are expensed as incurred. The Company has $165 million of excess liability insurance for third party claims, including claims related to wildfires, with a retention of $0.3 million, and $145 million directors and officers liability insurance to cover claims related to the shareholder and derivative lawsuits, with a retention of $1.0 million. As of March 31, 2024, the Company’s and Utilities’ insurance receivable totaled $28.7 million and $22.1 million, respectively, under the policies. See table below for the incremental expenses related to the Maui windstorm and wildfires. Year ended December 31, 2023 Three months ended March 31, 2024 (in thousands) Electric utility HEI Consolidated Electric utility HEI Consolidated Maui windstorm and wildfires related expenses: Legal expenses $ 24,737 $ 34,876 $ 10,735 $ 15,027 One ‘Ohana Initiative contribution 75,000 75,000 — — Other expense 15,071 28,507 13,832 15,091 Total Maui windstorm and wildfires related expenses 114,808 138,383 24,567 30,118 Insurance recoveries (98,613) (104,580) (9,969) (12,577) Deferral treatment approved by the PUC 1 (14,692) (14,692) (7,898) (7,898) Total Maui windstorm and wildfires related expenses, net of insurance recoveries and approved deferral treatment $ 1,503 $ 19,111 $ 6,700 $ 9,643 1 Related to the PUC’s order, received on December 27, 2023, approving deferred accounting treatment for the Utilities’ incremental non-labor expenses related to the August 2023 Maui windstorm and wildfires. Amounts were reclassified to a regulatory asset. On May 4, 2024, HEI and the Utilities reached an agreement to settle indemnification claims asserted by the State of Hawaii without any admission of fault or responsibility. Under the terms of the agreement, HEI and the Utilities agreed to contribute up to $18.4 million through the end of 2024 related to the costs of the professional advisors engaged by the State of Hawaii to advise on a variety of matters related to the Maui windstorm and wildfires. Under certain circumstances, HEI and the Utilities have the unilateral right to terminate the agreement and stop paying the costs for future periods. As of March 31, 2024, a total of $6.7 million of such costs were accrued and reflected in Maui windstorm and wildfires related expenses-Other expense in the table above. HEI and the Utilities are seeking insurance recoveries for such costs; however, the timing and amount of any insurance recoveries are not determinable at this time. In addition, the Utilities incurred $5.6 million of total capital costs related to the Maui windstorm and wildfires for the three months ended March 31, 2024. |
Segment financial information
Segment financial information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment financial information | Segment financial information (in thousands) Electric utility Bank Other Total Three months ended March 31, 2024 Revenues $ 788,578 $ 105,144 $ 3,436 $ 897,158 Income (loss) before income taxes $ 50,900 $ 25,813 $ (22,444) $ 54,269 Income taxes (benefit) 11,180 4,879 (4,385) 11,674 Net income (loss) 39,720 20,934 (18,059) 42,595 Preferred stock dividends of subsidiaries 499 — (26) 473 Net income (loss) for common stock $ 39,221 $ 20,934 $ (18,033) $ 42,122 Total assets (at March 31, 2024) $ 7,274,862 $ 9,360,229 $ 288,117 $ 16,923,208 Three months ended March 31, 2023 Revenues $ 830,361 $ 93,857 $ 4,019 $ 928,237 Income (loss) before income taxes $ 61,108 $ 23,707 $ (14,511) $ 70,304 Income taxes (benefit) 13,600 5,145 (3,635) 15,110 Net income (loss) 47,508 18,562 (10,876) 55,194 Preferred stock dividends of subsidiaries 499 — (26) 473 Net income (loss) for common stock $ 47,009 $ 18,562 $ (10,850) $ 54,721 Total assets (at December 31, 2023) $ 7,283,554 $ 9,673,192 $ 287,075 $ 17,243,821 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 | 3 Months Ended |
Mar. 31, 2024 | |
Electric Utility Subsidiary [Abstract] | |
Electric utility segment | Electric utility segment Unconsolidated variable interest entities. Power purchase agreements . As of March 31, 2024, 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. 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 was conditioned on the PUC’s timely, non-appealable final approval of an amended and restated PPA dated May 9, 2017. On May 23, 2022, following a contested case hearing, 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. On November 16, 2023, Hu Honua filed its Motion for Leave to File Third Amended and Supplemental Complaint and for Permissive Joinder with the U.S. District Court for the District of Hawaii, asking the court to grant it leave to file a Third Amended and Supplemental Complaint, which would amend its claims and add three new proposed defendants. The hearing on this motion took place on February 14, 2024. The court issued a decision and order on the motion on April 2, 2024, which was consistent with Hawaii Electric Light's position, only allowing amendments that were agreed to and not allowing Hu Honua to add new claims or parties, effectively leaving Hu Honua with its previously-pled breach of contract and antitrust claims. Hu Honua filed its objection to the order on April 16, 2024 and the Hawaiian Electric defendants filed their response to the objection on April 30, 2024. 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 (BESS) 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. 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 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 $2.5 million as of March 31, 2024, 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. 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 March 31, 2024, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $9.6 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 in April 2024 to $1.4 million to incorporate additional costs. It has not been determined whether the nature of the contamination is consistent with what was in the Utilities’ pipelines or is wholly or partially the responsibility of the other pipeline owner and whether the costs were properly incurred. 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. Endangered Species Act . The Utilities received a sixty-day notice under the federal Endangered Species Act, from Earthjustice on behalf of the American Bird Conservancy and Conservation Council for Hawaii in early February 2024. The sixty-day notice is the pre-cursor to a citizen’s suit under the Endangered Species Act. The notice alleges that the Utilities are out of compliance with the Act due to alleged impacts on endangered seabirds caused by the Utilities’ powerlines, street lights and facility lights on Maui and Lanai. The Utilities are already in the process of drafting a Habitat Conservation Plan and will be applying for associated state and federal permits. The notice asserts that the scope of the plan should be broader and that additional interim measures are required while the plan and permits are pending. 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. Commitments . Purchase commitments . In the ordinary course of business, the Utilities enter into various agreements to purchase power and lease fuel barge. As of December 31, 2023, the Utilities estimated future purchase obligations of $1.7 billion. See Note 4 of the Notes to the Consolidated Financial Statements in Item 8 of the 2023 Form 10-K. On March 28, 2024, AES West Oahu Solar project reached commercial operations, which has a capacity of 12.5 MW with 50 MWh batteries and total annual payment of $3.2 million. The battery portion of the PPA was recorded as a finance lease liability with corresponding right-of-use asset of $12.2 million during the first quarter of 2024. As of March 31, 2024, a total of five Stage 1 and Stage 2 renewable projects provide the Utilities of 117.5 MW, with 1,035 MWh batteries. Purchases from all IPPs were as follows: Three months ended March 31 (in millions) 2024 2023 Kalaeloa $ 66 $ 67 HPOWER 17 18 Puna Geothermal Venture 13 8 Hamakua Energy 11 20 Kapolei Energy Storage 6 — Wind IPPs 30 24 Solar IPPs 15 14 Other IPPs 1 2 2 Total IPPs $ 160 $ 153 1 Includes hydro power and other PPAs. 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. Maui Electric petitioned and received from the State of Hawaii Department of Health a one-year extension to the mandatory retirement of Kahului Power Plant. Although Maui Electric intends to retire the plant by the end of 2027, there is now flexibility to operate the units until the end of 2028. The conversion of the two generating units will be performed after the retirement of Kahului Power Plant Units 3 and 4. 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 March 31, 2024, $25.3 million has been incurred for the project. Waena Battery Energy Storage System Project . In September 2020, Maui Electric filed a PUC application to purchase and install a 40 MW BESS at its Waena Site in Central Maui. In December 2023, the PUC approved Maui Electric’s request to commit funds estimated at $82.1 million, for the purchase and installation of the project, and to recover costs for the project under EPRM. Project costs incurred as of March 31, 2024 amount to $0.6 million. Climate Adaptation Transmission and Distribution Resilience Program . The Utilities maintain that improving resiliency of the electric grid is an urgent matter and recognizes that climate change is making Hawaii increasingly vulnerable to sever weather events. On January 31, 2024, the PUC approved the Utilities’ request to commit an estimated $189.7 million in funds for the Climate Adaptation Transmission and Distribution Resilience Program, over a project period of five years. The project is to focus on, among other things, system hardening in wildfire risk areas to prevent ignition and to enable quicker response, video camera and weather monitors in wildfire risk areas and to add situational awareness, and strengthening transmission lines. The project costs to be recovered through EPRM is subject to a cap of $95 million and any amount in excess will be subject to the PUC’s further review. On October 17, 2023, the Utilities received a notification from the U.S. Department of Energy that its application for $95 million in federal funds under the Infrastructure Investment and Jobs Act (IIJA) has been selected for negotiations. Currently, the negotiation is ongoing. Project costs incurred as of March 31, 2024 amount to $1.5 million. 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 continued as previously implemented (e.g., the Energy Cost Recovery Clause, Purchased Power Adjustment 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 PIMs, a SSM, and extended the timeframe for an existing PIM. Specifically, the PUC approved (1) a (penalty-only) generation-caused interruption reliability PIM, (2) a (penalty/reward) interconnection requirements study PIM, (3) a (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 April 12, 2024. 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. On December 28, 2023, the PUC issued an order granting a temporary suspension of Maui Electric’s T&D SAIDI and SAIFI PIMs and Maui Electric Maui Division’s target heat rate provision from August 8, 2023 through June 30, 2024, which the tariffs became effective on January 1, 2024. 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 interconnection requirements study PIMs. On February 8, 2024, the PUC issued a procedural schedule to govern review of the proposals in the stipulation, which provides for a D&O on the stipulation by June 30, 2024. On December 26, 2023, the PUC issued an order (1) confirming that the Interim Grid Services PIM will sunset on December 31, 2023, (2) extending the Interconnection Approval PIM through December 31, 2024, and (3) determining that it will continue examination of the Long-Term Grid Services PIM into 2024 as part of a broader examination that addresses barriers to the utilization of DERs to meet grid needs. On April 1, 2024, the Utilities filed a request for partial temporary suspension and modification of the T&D SAIDI and T&D SAIFI PIMs. Specifically, the Utilities requested to suspend the T&D SAIDI and T&D SAIFI PIMs for wildfire risk circuits from January 1, 2024 to December 31, 2025. The Utilities also proposed that circuits not identified as wildfire risk circuits would continue to be subject to the existing PIMs on a prorated basis. On April 26, 2024, the PUC issued a procedural schedule to govern review of the request, a D&O is requested by December 16, 2024. 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 ARA mechanism replaced the previous revenue adjustment mechanism (RAM). 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 to the extent such adjustments are not included in base rate unless modified with PUC approval. The implementation of the ARA occurred on June 1, 2021. Earnings sharing mechanism . The PBR Framework established a symmetrical ESM for achieved rate-making ROACE outside of a 300 basis points deadband 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 deadband 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 March 31, 2024, the Utilities annualized MPIR and EPRM revenue amounts totaled $33.1 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), Waiawa UFLS project ($0.1 million) and Waena Switchyard/Synchronous project ($2.0 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 and for the Waena Switchyard project effective January 1, 2024 through the RBA rate adjustment. As of March 31, 2024, the PUC approved four EPRM applications for projects totaling $218.5 million to the extent the project costs are not included in rates. Currently, the Utilities are seeking EPRM recovery for three projects with total project costs up to $215.9 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 (Pilot Process). 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 March 11, 2024, the Utilities filed their annual Pilot Update report covering pilot projects that were active during 2023, including reporting on pilot projects that were initiated prior to the commencement of the Pilot Process. The Pilot Update reported on approximately $3.0 million of 2023 recorded pilot project costs including revenue taxes for the Utilities. The 2023 recorded pilot project costs were included in the Utilities’ proposed adjustments to target revenue in the 2024 spring revenue report filed on March 28, 2024. Performance incentive mechanisms . The following PIMs and SSMs were approved by the PUC and are applicable for the 2023 evaluation period and through March 31, 2024. • 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 $6.4 million for calendar year 2023 - for both indices in total for the three utilities). On December 28, 2023, the PUC issued an order granting a temporary suspension of Maui Electric’s T&D SAIDI and SAIFI PIMs from August 8, 2023 through June 30, 2024. For the 2023 evaluation period, the Utilities incurred $3.7 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. Based on the in-service date of two projects, the Utilities earned the second portion of the incentive of approximately $0.1 million (for Hawaiian Electric) in rewards in both 2023 and 2024. • Renewable portfolio standard (RPS) - A PIM that provides a financial reward for accelerating the achievement of RPS goals. The |
Bank segment
Bank segment | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31 (in thousands) 2024 2023 Interest and dividend income Interest and fees on loans $ 72,971 $ 64,842 Interest and dividends on investment securities 14,964 14,637 Total interest and dividend income 87,935 79,479 Interest expense Interest on deposit liabilities 17,432 6,837 Interest on other borrowings 8,154 7,721 Total interest expense 25,586 14,558 Net interest income 62,349 64,921 Provision for credit losses (2,159) 1,175 Net interest income after provision for credit losses 64,508 63,746 Noninterest income Fees from other financial services 4,874 4,679 Fee income on deposit liabilities 4,898 4,599 Fee income on other financial products 2,743 2,744 Bank-owned life insurance 3,584 1,425 Mortgage banking income 424 130 Other income, net 686 801 Total noninterest income 17,209 14,378 Noninterest expense Compensation and employee benefits 32,459 30,204 Occupancy 5,063 5,588 Data processing 4,846 5,012 Services 4,151 2,595 Equipment 2,649 2,646 Office supplies, printing and postage 1,018 1,165 Marketing 776 1,016 Other expense 4,942 6,191 Total noninterest expense 55,904 54,417 Income before income taxes 25,813 23,707 Income taxes 4,879 5,145 Net income 20,934 18,562 Other comprehensive income (loss), net of taxes (9,768) 18,430 Comprehensive income $ 11,166 $ 36,992 Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended March 31 (in thousands) 2024 2023 Interest and dividend income $ 87,935 $ 79,479 Noninterest income 17,209 14,378 *Revenues-Bank 105,144 93,857 Total interest expense 25,586 14,558 Provision for credit losses (2,159) 1,175 Noninterest expense 55,904 54,417 Less: Retirement defined benefits credit—other than service costs (281) (187) *Expenses-Bank 79,612 70,337 *Operating income-Bank 25,532 23,520 Add back: Retirement defined benefits credit—other than service costs (281) (187) Income before income taxes $ 25,813 $ 23,707 American Savings Bank, F.S.B. Balance Sheets Data (in thousands) March 31, 2024 December 31, 2023 Assets Cash and due from banks $ 126,259 $ 184,383 Interest-bearing deposits 100,681 251,072 Cash and cash equivalents 226,940 435,455 Investment securities Available-for-sale, at fair value 1,091,889 1,136,439 Held-to-maturity, at amortized cost (fair value of $1,074,735 and $1,103,668, at March 31, 2024 and December 31, 2023, respectively) 1,191,074 1,201,314 Stock in Federal Home Loan Bank, at cost 32,489 14,728 Loans held for investment 6,116,722 6,180,810 Allowance for credit losses (71,057) (74,372) Net loans 6,045,665 6,106,438 Loans held for sale, at lower of cost or fair value 2,923 15,168 Other 687,059 681,460 Goodwill 82,190 82,190 Total assets $ 9,360,229 $ 9,673,192 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 2,557,240 $ 2,599,762 Deposit liabilities—interest-bearing 5,447,824 5,546,016 Other borrowings 593,000 750,000 Other 220,570 247,563 Total liabilities 8,818,634 9,143,341 Common stock 1 1 Additional paid-in capital 358,645 358,067 Retained earnings 484,989 464,055 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (293,466) $ (282,963) Retirement benefit plans (8,574) (302,040) (9,309) (292,272) Total shareholder’s equity 541,595 529,851 Total liabilities and shareholder’s equity $ 9,360,229 $ 9,673,192 Other assets Bank-owned life insurance $ 191,448 $ 187,857 Premises and equipment, net 184,684 187,042 Accrued interest receivable 29,697 28,472 Mortgage-servicing rights 8,050 8,169 Low-income housing investments 108,314 112,234 Deferred tax asset 108,240 104,292 Other 56,626 53,394 $ 687,059 $ 681,460 Other liabilities Accrued expenses $ 114,289 $ 115,231 Cashier’s checks 34,908 40,479 Advance payments by borrowers 5,559 10,107 Other 65,814 81,746 $ 220,570 $ 247,563 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 March 31, 2024 Available-for-sale U.S. Treasury and federal agency obligations $ 10,052 $ — $ (415) $ 9,637 — $ — $ — 8 $ 9,637 $ (415) Mortgage-backed securities* 1,256,426 — (221,292) 1,035,134 2 1,340 (17) 115 1,033,794 (221,275) Corporate bonds 35,205 — (2,304) 32,901 — — — 3 32,901 (2,304) Mortgage revenue bonds 14,217 — — 14,217 — — — — — — $ 1,315,900 $ — $ (224,011) $ 1,091,889 2 $ 1,340 $ (17) 126 $ 1,076,332 $ (223,994) Held-to-maturity U.S. Treasury and federal agency obligations $ 59,923 $ — $ (7,830) $ 52,093 — $ — $ — 3 $ 52,094 $ (7,830) Mortgage-backed securities* 1,131,151 85 (108,594) 1,022,642 55 549,389 (18,604) 45 448,729 (89,990) $ 1,191,074 $ 85 $ (116,424) $ 1,074,735 55 $ 549,389 $ (18,604) 48 $ 500,823 $ (97,820) December 31, 2023 Available-for-sale U.S. Treasury and federal agency obligations $ 12,437 $ — $ (427) $ 12,010 — $ — $ — 9 $ 12,010 $ (427) Mortgage-backed securities* 1,279,852 — (202,684) 1,077,168 3 1,649 (22) 116 1,075,519 (202,662) Corporate bonds 35,239 — (2,336) 32,903 — — — 3 32,903 (2,336) Mortgage revenue bonds 14,358 — — 14,358 — — — — — — $ 1,341,886 $ — $ (205,447) $ 1,136,439 3 $ 1,649 $ (22) 128 $ 1,120,432 $ (205,425) Held-to-maturity U.S. Treasury and federal agency obligations $ 59,917 $ — $ (7,135) $ 52,782 — $ — $ — 3 $ 52,782 $ (7,135) Mortgage-backed securities* 1,141,397 2,221 (92,732) 1,050,886 37 378,326 (7,610) 43 432,082 (85,122) $ 1,201,314 $ 2,221 $ (99,867) $ 1,103,668 37 $ 378,326 $ (7,610) 46 $ 484,864 $ (92,257) * 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 March 31, 2024 and December 31, 2023, 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, an agency of the government or a government-sponsored entity. 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 March 31, 2024 and December 31, 2023. 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: March 31, 2024 Amortized Fair value (in thousands) Available-for-sale Due in one year or less $ 777 $ 759 Due after one year through five years 44,480 41,779 Due after five years through ten years 14,217 14,217 Due after ten years — — 59,474 56,755 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,256,426 1,035,134 Total available-for-sale securities $ 1,315,900 $ 1,091,889 Held-to-maturity Due in one year or less $ — $ — Due after one year through five years 39,841 35,225 Due after five years through ten years 20,082 16,868 Due after ten years — — 59,923 52,093 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,131,151 1,022,642 Total held-to-maturity securities $ 1,191,074 $ 1,074,735 There were no sales of available-for-sale securities for the three months ended March 31, 2024 and 2023. The components of loans were summarized as follows: March 31, 2024 December 31, 2023 (in thousands) Real estate: Residential 1-4 family $ 2,598,091 $ 2,595,162 Commercial real estate 1,368,394 1,374,038 Home equity line of credit 996,049 1,017,207 Residential land 18,197 18,364 Commercial construction 185,857 172,405 Residential construction 17,756 17,843 Total real estate 5,184,344 5,195,019 Commercial 704,638 743,303 Consumer 256,273 272,256 Total loans 6,145,255 6,210,578 Less: Deferred fees and discounts (28,533) (29,768) Allowance for credit losses (71,057) (74,372) Total loans, net $ 6,045,665 $ 6,106,438 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. As of March 31, 2024, ASB had commitments to borrowers for loans and unused lines and letters of credit of $1.9 billion, of which, commitments to lend to borrowers whose loan terms have been modified in troubled debt restructurings were nil. 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 March 31, 2024 Allowance for credit losses: Beginning balance $ 7,435 $ 22,185 $ 7,778 $ 621 $ 3,603 $ 43 $ 9,122 $ 23,585 $ 74,372 Charge-offs (842) — — — — — (114) (2,719) (3,675) Recoveries 186 — 238 — — — 95 1,000 1,519 Provision (373) (1,851) 57 51 (202) (2) (1,489) 2,650 (1,159) Ending balance $ 6,406 $ 20,334 $ 8,073 $ 672 $ 3,401 $ 41 $ 7,614 $ 24,516 $ 71,057 Three months ended March 31, 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 (809) — (63) — — — (227) (2,323) (3,422) Recoveries 4 — 17 — — — 398 908 1,327 Provision (853) 803 (26) (97) (460) (18) (661) 2,487 1,175 Ending balance $ 4,612 $ 22,701 $ 6,053 $ 620 $ 735 $ 28 $ 11,936 $ 24,611 $ 71,296 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 March 31, 2024 Allowance for loan commitments: Beginning balance $ 600 $ 4,300 $ 200 $ 5,100 Provision — (1,200) 200 (1,000) Ending balance $ 600 $ 3,100 $ 400 $ 4,100 Three months ended March 31, 2023 Allowance for loan commitments: Beginning balance $ 400 $ 2,600 $ 1,400 $ 4,400 Provision — — — — 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) 2024 2023 2022 2021 2020 Prior Revolving Converted to term loans Total March 31, 2024 Residential 1-4 family Current $ 43,536 $ 260,253 $ 401,887 $ 722,614 $ 395,190 $ 761,888 $ — $ — $ 2,585,368 30-59 days past due — — — — — 2,191 — — 2,191 60-89 days past due — — — — — 773 — — 773 Greater than 89 days past due — — 1,928 1,893 1,129 4,809 — — 9,759 43,536 260,253 403,815 724,507 396,319 769,661 — — 2,598,091 Home equity line of credit Current — — — — — — 929,649 62,087 991,736 30-59 days past due — — — — — — 971 700 1,671 60-89 days past due — — — — — — 740 169 909 Greater than 89 days past due — — — — — — 1,418 315 1,733 — — — — — — 932,778 63,271 996,049 Residential land Current 1,955 3,748 3,888 5,467 1,746 718 — — 17,522 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — 675 — — — — — 675 1,955 3,748 4,563 5,467 1,746 718 — — 18,197 Residential construction Current 388 6,189 10,440 739 — — — — 17,756 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 388 6,189 10,440 739 — — — — 17,756 Consumer Current 8,829 76,930 141,903 8,207 1,127 406 10,207 2,395 250,004 30-59 days past due 205 612 1,559 167 11 11 152 110 2,827 60-89 days past due — 613 1,150 84 15 3 70 49 1,984 Greater than 89 days past due — 369 681 68 26 10 90 214 1,458 9,034 78,524 145,293 8,526 1,179 430 10,519 2,768 256,273 Commercial real estate Pass 8,436 104,489 382,853 191,109 265,611 363,035 15,482 — 1,331,015 Special Mention — — 1,975 — — 17,338 — — 19,313 Substandard — — — 1,527 — 13,991 — — 15,518 Doubtful — — — — — 2,548 — — 2,548 8,436 104,489 384,828 192,636 265,611 396,912 15,482 — 1,368,394 Commercial construction Pass — 55,494 39,399 26,545 1,333 — 63,086 — 185,857 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — 55,494 39,399 26,545 1,333 — 63,086 — 185,857 Commercial Pass 11,996 102,699 178,426 105,411 72,558 83,332 99,943 6,284 660,649 Special Mention — 19,524 6,774 933 — 228 7,176 — 34,635 Substandard — — 2,869 1,790 — 3,182 1,276 139 9,256 Doubtful — — — — 98 — — — 98 11,996 122,223 188,069 108,134 72,656 86,742 108,395 6,423 704,638 Total loans $ 75,345 $ 630,920 $ 1,176,407 $ 1,066,554 $ 738,844 $ 1,254,463 $ 1,130,260 $ 72,462 $ 6,145,255 Term Loans by Origination Year Revolving Loans (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Converted to term loans Total December 31, 2023 Residential 1-4 family Current $ 263,605 $ 407,304 $ 729,256 $ 399,766 $ 104,487 $ 672,408 $ — $ — $ 2,576,826 30-59 days past due — 708 — 268 — 3,525 — — 4,501 60-89 days past due — 726 2,694 — — 1,745 — — 5,165 Greater than 89 days past due — 2,519 871 1,129 489 3,662 — — 8,670 263,605 411,257 732,821 401,163 104,976 681,340 — — 2,595,162 Home equity line of credit Current — — — — — — 954,461 59,146 1,013,607 30-59 days past due — — — — — — 1,219 262 1,481 60-89 days past due — — — — — — 597 — 597 Greater than 89 days past due — — — — — — 1,111 411 1,522 — — — — — — 957,388 59,819 1,017,207 Residential land Current 3,788 4,097 7,234 1,847 — 723 — — 17,689 30-59 days past due — — — — — — — — — 60-89 days past due — 675 — — — — — — 675 Greater than 89 days past due — — — — — — — — — 3,788 4,772 7,234 1,847 — 723 — — 18,364 Residential construction Current 5,369 10,984 1,490 — — — — — 17,843 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 5,369 10,984 1,490 — — — — — 17,843 Consumer Current 87,686 153,239 9,852 1,654 451 200 10,663 2,779 266,524 30-59 days past due 805 1,314 176 29 24 — 56 163 2,567 60-89 days past due 385 886 114 41 21 — 60 69 1,576 Greater than 89 days past due 354 786 101 24 34 — 67 223 1,589 89,230 156,225 10,243 1,748 530 200 10,846 3,234 272,256 Commercial real estate Pass 104,368 384,144 180,986 267,458 65,625 307,367 15,482 — 1,325,430 Special Mention — 1,975 11,159 — 14,110 3,008 — — 30,252 Substandard — — 1,538 — 11,048 5,770 — — 18,356 Doubtful — — — — — — — — — 104,368 386,119 193,683 267,458 90,783 316,145 15,482 — 1,374,038 Commercial construction Pass 45,863 33,240 26,133 1,333 — — 65,836 — 172,405 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 45,863 33,240 26,133 1,333 — — 65,836 — 172,405 Commercial Pass 124,667 199,796 106,669 73,976 37,580 80,012 87,206 6,250 716,156 Special Mention 1,860 6,989 951 — 250 — 7,352 — 17,402 Substandard — 2,962 1,848 98 60 3,369 1,275 133 9,745 Doubtful — — — — — — — — — 126,527 209,747 109,468 74,074 37,890 83,381 95,833 6,383 743,303 Total loans $ 638,750 $ 1,212,344 $ 1,081,072 $ 747,623 $ 234,179 $ 1,081,789 $ 1,145,385 $ 69,436 $ 6,210,578 Gross charge-offs by portfolio segment and vintage were as follows: (in thousands) 2024 2023 2022 2021 2020 Prior Total Three months ended March 31, 2024 Residential 1-4 family $ — $ — $ 361 $ 277 $ — $ 204 $ 842 Commercial real estate — — — — — — — Home equity line of credit — — — — — — — Residential land — — — — — — — Commercial construction — — — — — — — Residential construction — — — — — — — Commercial — — — 14 — 100 114 Consumer 166 937 1,342 127 36 111 2,719 Total $ 166 $ 937 $ 1,703 $ 418 $ 36 $ 415 $ 3,675 (in thousands) 2023 2022 2021 2020 2019 Prior Total Three months ended March 31, 2023 Residential 1-4 family $ — $ — $ — $ — $ — $ 809 $ 809 Commercial real estate — — — — — — — Home equity line of credit — — 43 — — 20 63 Residential land — — — — — — — Commercial construction — — — — — — — Residential construction — — — — — — — Commercial — — 51 — 8 168 227 Consumer 189 1,524 319 57 176 58 2,323 Total $ 189 $ 1,524 $ 413 $ 57 $ 184 $ 1,055 $ 3,422 Revolving loans converted to term loans during the three months ended March 31, 2024 in the commercial, home equity line of credit and consumer portfolios were $0.8 million, $6.5 million and $0.2 million, respectively. Revolving loans converted to term loans during the three months ended March 31, 2023 in the commercial, home equity line of credit and consumer portfolios were $1.2 million, $7.8 million and $1.1 million, respectively. The credit risk profile based on payment activity for loans was as follows: (in thousands) 30-59 60-89 90 days or more past due Total Current Total Amortized cost> March 31, 2024 Real estate: Residential 1-4 family $ 2,191 $ 773 $ 9,759 $ 12,723 $ 2,585,368 $ 2,598,091 $ 425 Commercial real estate — — 11,048 11,048 1,357,346 1,368,394 — Home equity line of credit 1,671 909 1,733 4,313 991,736 996,049 — Residential land — — 675 675 17,522 18,197 — Commercial construction — — — — 185,857 185,857 — Residential construction — — — — 17,756 17,756 — Commercial 72 — 139 211 704,427 704,638 — Consumer 2,827 1,984 1,458 6,269 250,004 256,273 — Total loans $ 6,761 $ 3,666 $ 24,812 $ 35,239 $ 6,110,016 $ 6,145,255 $ 425 December 31, 2023 Real estate: Residential 1-4 family $ 4,501 $ 5,165 $ 8,670 $ 18,336 $ 2,576,826 $ 2,595,162 $ 425 Commercial real estate — — 11,048 11,048 1,362,990 1,374,038 — Home equity line of credit 1,481 597 1,522 3,600 1,013,607 1,017,207 — Residential land — 675 — 675 17,689 18,364 — Commercial construction — — — — 172,405 172,405 — Residential construction — — — — 17,843 17,843 — Commercial 163 135 244 542 742,761 743,303 — Consumer 2,567 1,576 1,589 5,732 266,524 272,256 — Total loans $ 8,712 $ 8,148 $ 23,073 $ 39,933 $ 6,170,645 $ 6,210,578 $ 425 The credit risk profile based on nonaccrual loans were as follows: (in thousands) March 31, 2024 December 31, 2023 With a related ACL Without a related ACL Total With a related ACL Without a related ACL Total Real estate: Residential 1-4 family $ 8,758 $ 5,225 $ 13,983 $ 7,755 $ 2,190 $ 9,945 Commercial real estate 11,048 — 11,048 11,048 — 11,048 Home equity line of credit 2,404 1,538 3,942 2,626 1,135 3,761 Residential land 675 — 675 780 — 780 Commercial construction — — — — — — Residential construction — — — — — — Commercial 238 188 426 133 301 434 Consumer 2,516 — 2,516 2,458 — 2,458 Total $ 25,639 $ 6,951 $ 32,590 $ 24,800 $ 3,626 $ 28,426 ASB did not recognize interest on nonaccrual loans for the three months ended March 31, 2024 and 2023. 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. Loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2024 were as follows: (in thousands) Term extension Payment delay Combination payment delay & term extension Total % of total class of loans Real estate loans Residential 1-4 family $ 266 $ 3,311 $ — $ 3,577 0.14 % Commercial real estate — — 1,975 1,975 0.14 % Home equity line of credit — 447 — 447 0.04 % Residential land — 675 — 675 3.71 % Commercial construction — — — — — Residential construction — — — — — Commercial — — — — — Consumer — — — — — Total $ 266 $ 4,433 $ 1,975 $ 6,674 0.11 % Financial effect of loan modifications during the three months ended March 31, 2024 for borrowers experiencing financial difficulty were as follows: Weighted average Term extension (in months) Payment delay (in months) Real estate loans Residential 1-4 family 156 9 Commercial real estate 9 9 Home equity line of credit — 9 Residential land — 9 Commercial construction — — Residential construction — — Commercial — — Consumer — — Credit risk profile based on payment activity for loans modified during the three months ended March 31, 2024 were as follows: (in thousands) Current 30-59 days past due 60-89 days past due 90 days or more past due Total Real estate loans Residential 1-4 family $ 266 $ — $ — $ 3,311 $ 3,577 Commercial real estate 1,975 — — — 1,975 Home equity line of credit 447 — — — 447 Residential land — — — 675 675 Commercial construction — — — — — Residential construction — — — — — Commercial — — — — — Consumer — — — — — Total $ 2,688 $ — $ — $ 3,986 $ 6,674 During the three months ended March 31, 2024, there were no loan modifications made to borrowers experiencing financial difficulty that defaulted. 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) March 31, 2024 December 31, 2023 Collateral type Real estate: Residential 1-4 family $ 5,731 $ 2,272 Residential real estate property Commercial real estate 11,048 11,048 Commercial real estate property Home equity line of credit 1,674 1,135 Residential real estate property Total real estate 18,453 14,455 Commercial 286 301 Business assets Total $ 18,739 $ 14,756 ASB had $4.8 million and $3.4 million of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure at March 31, 2024 and December 31, 2023, 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 $26.4 million and $5.7 million for the three months ended March 31, 2024 and 2023, respectively, and recognized gains on such sales of $0.4 million and $0.1 million for the three months ended March 31, 2024 and 2023, respectively. There were no repurchased mortgage loans for the three months ended March 31, 2024 and 2023. Mortgage servicing fees, a component of other income, net, were $0.9 million for the three months ended March 31, 2024 and 2023. Changes in the carrying value of MSRs were as follows: (in thousands) Gross Accumulated amortization Valuation allowance Net March 31, 2024 $ 17,939 $ (9,889) $ — $ 8,050 December 31, 2023 18,241 (10,072) — 8,169 Changes related to MSRs were as follows: Three months ended March 31 (in thousands) 2024 2023 Mortgage servicing rights Beginning balance $ 8,169 $ 9,047 Amount capitalized 198 51 Amortization (317) (353) Other-than-temporary impairment — — Carrying amount before valuation allowance 8,050 8,745 Valuation allowance for mortgage servicing rights Beginning balance — — Provision — — Other-than-temporary impairment — — Ending balance — — Net carrying value of mortgage servicing rights $ 8,050 $ 8,745 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) March 31, 2024 December 31, 2023 Unpaid principal balance $ 1,399,266 $ 1,402,736 Weighted average note rate 3.52 % 3.47 % Weighted average discount rate 10.00 % 10.00 % Weighted average prepayment speed 6.13 % 5.71 % 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) March 31, 2024 December 31, 2023 Prepayment rate: 25 basis points adverse rate change $ (125) $ (90) 50 basis points adverse rate change (274) (204) Discount rate: 25 basis points adverse rate change (197) (203) 50 basis points adverse rate change (391) (402) 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 March 31, 2024 and December 31, 2023, ASB had $593.0 million and $200.0 million of FHLB advances outstanding, respectively, and borrowings with the Federal Reserve Bank of nil and $550.0 million, respectively. As of March 31, 2024, 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. Derivative financial instruments. ASB enters into interest rate lock commitments (IRLCs) with borrowers, and forward commitments to sell loans or to-be-announced mortgage-backed securities to investors to hedge against the inherent interest rate and pricing risks associated with selling loans. ASB enters into IRLCs for residential mortgage loans, which commit ASB to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose ASB to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free-standing derivatives which are carried at fair value with changes recorded in mortgage banking income. ASB enters into forward commitments to hedge the interest rate risk for rate locked mortgage applications in process and closed mortgage loans held for sale. These commitments are primarily forward sales of to-be-announced mortgage backed securities. Generally, when mortgage loans are closed, the forward commitment is liquidated and replaced with a mandatory delivery forward sale of the mortgage to a secondary market investor. In some cases, a best-efforts forward sale agreement is utilized as the forward commitment. These commitments are free-standing derivatives which are carried at fair value with changes recorded in mortgage banking income. Changes in the fair value of IRLCs and forward commitments subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time. The notional amount and fair value of ASB’s derivative financial instruments were as follows: March 31, 2024 December 31, 2023 (in thousands) Notional amount Fair value Notional amount Fair value Interest rate lock commitments $ 8,938 $ 136 $ 6,246 $ 86 Forward commitments 6,900 (13) 5,500 (18) ASB’s derivative financial instruments, their fair values and balance sheet location were as follows: Derivative Financial Instruments Not Designated as Hedging Instruments 1 March 31, 2024 December 31, 2023 (in thousands) Asset derivatives Liability Asset derivatives Liability Interest rate lock commitments $ 136 $ — $ 86 $ — Forward commitments 1 14 — 18 $ 137 $ 14 $ 86 $ 18 1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the balance sheets. 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 March 31 (in thousands) 2024 2023 Interest rate lock commitments Mortgage banking income $ 50 $ 17 Forward commitments Mortgage bankin |
Credit agreement and changes in
Credit agreement and changes in debt | 3 Months Ended |
Mar. 31, 2024 | |
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 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 and used for general corporate purposes. Under the HEI and Hawaiian Electric Intercompany Borrowing and Investment Policy effective January 1, 2020 (the Intercompany Borrowing Policy), HEI has committed to make revolving short-term loans to Hawaiian Electric pursuant to the terms set forth in the standing commitment letter dated December 8, 2023 (the 2023 Commitment Letter). For loans that mature on or before December 6, 2024, the 2023 Commitment Letter provides a borrowing limit of $75 million outstanding at any time and the applicable interest rate. Hawaiian Electric currently has no borrowings under the Intercompany Borrowing Policy and the 2023 Commitment Letter. Changes in debt. |
Shareholders' equity
Shareholders' equity | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 $ (282,963) $ 1,638 $ (8,025) $ (289,350) $ 2,849 Current period other comprehensive income (loss) (10,503) 692 10 (9,801) (49) Balance, March 31, 2024 $ (293,466) $ 2,330 $ (8,015) $ (299,151) $ 2,800 Balance, December 31, 2022 $ (328,904) $ 1,991 $ (9,115) $ (336,028) $ 2,861 Current period other comprehensive income (loss) 20,282 138 68 20,488 (45) Balance, March 31, 2023 $ (308,622) $ 2,129 $ (9,047) $ (315,540) $ 2,816 Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Affected line item in the Three months ended March 31 (in thousands) 2024 2023 HEI consolidated Amortization of unrealized holding losses on held-to-maturity securities $ 3,086 $ 3,677 Bank revenues Net realized gains on derivatives qualifying as cash flow hedges (48) (48) Interest expense Retirement benefit plans: Amortization of prior service credit and net gains recognized during the period in net periodic benefit cost (449) (357) See Note 9 for additional details Impact of D&Os of the PUC included in regulatory assets 459 425 See Note 9 for additional details Total reclassifications $ 3,048 $ 3,697 Hawaiian Electric consolidated Retirement benefit plans: Amortization of prior service credit and net gains recognized during the period in net periodic benefit cost $ (508) $ (470) See Note 9 for additional details Impact of D&Os of the PUC included in regulatory assets 459 425 See Note 9 for additional details Total reclassifications $ (49) $ (45) |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The following tables disaggregate revenues by major source, timing of revenue recognition, and segment: Three months ended March 31, 2024 (in thousands) Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 241,522 $ — $ — $ 241,522 Electric energy sales - commercial 241,768 — — 241,768 Electric energy sales - large light and power 271,087 — — 271,087 Electric energy sales - other 4,946 — — 4,946 Bank fees — 12,515 — 12,515 Other sales — — 3,306 3,306 Total revenues from contracts with customers 759,323 12,515 3,306 775,144 Revenues from other sources Regulatory revenue 21,190 — — 21,190 Bank interest and dividend income — 87,935 — 87,935 Other bank noninterest income — 4,694 — 4,694 Other 8,065 — 130 8,195 Total revenues from other sources 29,255 92,629 130 122,014 Total revenues $ 788,578 $ 105,144 $ 3,436 $ 897,158 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 12,515 $ — $ 12,515 Services/goods transferred over time 759,323 — 3,306 762,629 Total revenues from contracts with customers $ 759,323 $ 12,515 $ 3,306 $ 775,144 Three months ended March 31, 2023 (in thousands) Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 255,550 $ — $ — $ 255,550 Electric energy sales - commercial 254,470 — — 254,470 Electric energy sales - large light and power 290,978 — — 290,978 Electric energy sales - other 5,457 — — 5,457 Bank fees — 12,022 — 12,022 Other sales — — 3,907 3,907 Total revenues from contracts with customers 806,455 12,022 3,907 822,384 Revenues from other sources Regulatory revenue 15,604 — — 15,604 Bank interest and dividend income — 79,479 — 79,479 Other bank noninterest income — 2,356 — 2,356 Other 8,302 — 112 8,414 Total revenues from other sources 23,906 81,835 112 105,853 Total revenues $ 830,361 $ 93,857 $ 4,019 $ 928,237 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 12,022 $ — $ 12,022 Services/goods transferred over time 806,455 — 3,907 810,362 Total revenues from contracts with customers $ 806,455 $ 12,022 $ 3,907 $ 822,384 There are no material contract assets or liabilities associated with revenues from contracts with customers existing at December 31, 2023 or as of March 31, 2024. 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 March 31, 2024, 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 | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Retirement benefits | Retirement benefits Defined benefit pension and other postretirement benefit plans information. The Company made no contributions to its pension and other postretirement benefit plans during the first three months of 2024, compared to $2 million ($2 million by the Utilities) in the first three months of 2023. The Company’s current estimate of total contributions to its pension and other postretirement benefit plans in 2024 is comparable to 2023 at $8 million ($8 million by the Utilities). In addition, in 2024, comparable to 2023, the Company expects to pay directly $3 million ($1 million by the Utilities) of benefits. 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 March 31 Pension benefits Other benefits (in thousands) 2024 2023 2024 2023 HEI consolidated Service cost $ 11,264 $ 11,396 $ 281 $ 344 Interest cost 26,506 25,621 1,867 2,157 Expected return on plan assets (35,982) (35,195) (3,485) (3,405) Amortization of net prior period gain — — — (219) Amortization of net actuarial (gain)/losses 111 188 (713) (449) Net periodic pension/benefit cost (return) 1,899 2,010 (2,050) (1,572) Impact of PUC D&Os 18,090 18,133 1,888 1,425 Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) $ 19,989 $ 20,143 $ (162) $ (147) Hawaiian Electric consolidated Service cost $ 10,916 $ 11,019 $ 278 $ 340 Interest cost 24,627 23,698 1,779 2,063 Expected return on plan assets (33,777) (32,972) (3,434) (3,353) Amortization of net prior period gain — — — (218) Amortization of net actuarial (gain)/losses 12 19 (694) (434) Net periodic pension/benefit cost (return) 1,778 1,764 (2,071) (1,602) Impact of PUC D&Os 18,090 18,133 1,888 1,425 Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) $ 19,868 $ 19,897 $ (183) $ (177) HEI consolidated recorded retirement benefits expense of $11 million ($11 million by the Utilities) in the first three months of both 2024 and 2023 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 three months of 2024 and 2023, the Company’s expenses for its defined contribution plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan were $3.0 million and $2.7 million, respectively, and cash contributions were $2.9 million and $2.7 million, respectively. For the first three months of 2024 and 2023, the Utilities’ expenses and cash contributions for its defined contribution plan under the HEIRSP were $1.8 million and $1.3 million, respectively. |
Share-based compensation
Share-based compensation | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, approximately 2.5 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 0.9 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 March 31, 2024, 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 March 31 (in millions) 2024 2023 HEI consolidated Share-based compensation expense 1 $ 1.3 $ 2.0 Income tax benefit 0.1 0.3 Hawaiian Electric consolidated Share-based compensation expense 1 0.4 0.7 Income tax benefit — 0.1 1 For the three months ended March 31, 2024 and 2023, 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 March 31 (dollars in millions) 2024 2023 Shares granted — 1,509 Fair value $ — $ 0.1 Income tax benefit — — 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 March 31 2024 2023 Shares (1) Shares (1) Outstanding, beginning of period 189,024 $ 41.23 182,528 $ 39.75 Granted — — 100,088 42.41 Vested (97,050) 40.39 (80,077) 39.30 Forfeited (1,071) 41.97 (406) 38.39 Outstanding, end of period 90,903 $ 42.11 202,133 $ 41.25 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ 4.2 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For the three months ended March 31, 2024 and 2023, total restricted stock units and related dividends that vested had a fair value of $1.4 million and $3.6 million, respectively, and the related tax benefits were $0.3 million and $0.8 million, respectively. As of March 31, 2024, there was $3.4 million of total unrecognized compensation cost related to the nonvested restricted stock units. The cost is expected to be recognized over a weighted-average period of 1.6 years. Long-term incentive plan payable in stock. The 2022-24, 2023-25 and 2024-26 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 2022-24 performance period, 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 and 2024-26 performance periods), 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), carbon emissions reduction, Hawaiian Electric’s net income growth, credit rating and public safety, 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 March 31 2024 2023 Shares (1) Shares (1) Outstanding, beginning of period 76,477 $ 50.11 71,574 $ 47.67 Granted 62,152 17.28 27,123 55.98 Vested (issued or unissued and cancelled) (28,577) 41.12 (18,691) 48.62 Forfeited (409) 55.63 — — Outstanding, end of period 109,643 $ 33.82 80,006 $ 50.27 Total weighted-average grant-date fair value of shares granted (in millions) $ 1.1 $ 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: 2024 2023 Risk-free interest rate 4.25 % 4.19 % Expected life in years 3 3 Expected volatility 52.5 % 33.1 % Range of expected volatility for Peer Group 12.3% to 52.5% 28.7% to 38.8% Grant-date fair value (per share) $17.28 $55.98 There were no share-based LTIP awards linked to TSR with a vesting date in 2024 and 2023. As of March 31, 2024, there was $2.1 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 2.1 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 March 31 2024 2023 Shares (1) Shares (1) Outstanding, beginning of period 327,085 $ 39.44 309,589 $ 39.50 Granted 362,963 13.09 108,499 42.41 Vested (113,118) 34.93 (62,778) 48.07 Increase above target (cancelled) (546) 41.29 — — Forfeited (1,640) 42.04 — — Outstanding, end of period 574,744 $ 23.68 355,310 $ 38.87 Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) $ 4.8 $ 4.6 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For the three months ended March 31, 2024 and 2023, total vested LTIP awards linked to other performance conditions and related dividends had a fair value of $1.7 million and $2.9 million, respectively, and the related tax benefits were $0.4 million and $0.6 million, respectively. As of March 31, 2024, there was $7.8 million of total unrecognized compensation cost related to the nonvested shares linked to performance conditions other than TSR. The cost is expected to be recognized over a weighted-average period of 2.2 years. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2024 | |
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 three months ended March 31, 2024 were 22%. These rates differed from the combined statutory rates, due primarily to the Utilities’ amortization of excess deferred income taxes related to the provision in the 2017 Tax Cuts and Jobs Act that lowered the federal income tax rate from 35% to 21%, the tax benefits derived from the low income housing tax credit investments and the non-taxability of the bank-owned life insurance income. 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 in tax year 2023. The Company is exploring clean energy tax incentives included in the IRA. |
Cash flows
Cash flows | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash flows | Cash flows Three months ended March 31 2024 2023 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates, net of amounts capitalized $ 62 $ 21 Income taxes paid (including refundable credits) 18 — Hawaiian Electric consolidated Interest paid to non-affiliates 14 6 Income taxes paid (including refundable credits) 21 3 Supplemental disclosures of noncash activities HEI consolidated Property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 6 1 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 30 50 Right-of-use assets obtained in exchange for finance lease obligations (financing) 13 40 Right-of-use assets obtained in exchange for operating lease obligations (investing) 1 1 Common stock issued (gross) for director and executive/management compensation (financing) 1 3 7 Obligations to fund low income housing investments (investing) — 7 Loans transferred from held for investment to held for sale (investing) 20 — Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 6 1 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 29 48 Right-of-use assets obtained in exchange for finance lease obligations (financing) 12 40 Common stock dividends payable (financing) 13 — 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 | 3 Months Ended |
Mar. 31, 2024 | |
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: 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 certificates . 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, repurchase agreements and other bank borrowings, fair value is estimated using quantitative discounted cash flow models that require the use of interest rate inputs that are currently offered for advances, repurchase agreements and other bank borrowings 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 March 31, 2024 Financial assets HEI consolidated Available-for-sale investment securities $ 1,091,889 $ — $ 1,077,672 $ 14,217 $ 1,091,889 Held-to-maturity investment securities 1,191,074 — 1,074,735 — 1,074,735 Loans, net 6,048,588 — 2,922 5,606,328 5,609,250 Mortgage servicing rights 8,050 — — 18,430 18,430 Derivative assets 41,967 — 1,815 — 1,815 Financial liabilities HEI consolidated Deposit liabilities - time certificates 1,007,258 — 996,493 — 996,493 Other bank borrowings 593,000 — 591,244 — 591,244 Long-term debt, net—other than bank 2,837,875 — 2,145,625 — 2,145,625 Derivative liabilities 6,250 14 — — 14 Hawaiian Electric consolidated Long-term debt, net 1,932,959 — 1,392,483 — 1,392,483 December 31, 2023 Financial assets HEI consolidated Available-for-sale investment securities $ 1,136,439 $ — $ 1,122,081 $ 14,358 $ 1,136,439 Held-to-maturity investment securities 1,201,314 — 1,103,668 — 1,103,668 Loans, net 6,121,606 — 15,176 5,723,823 5,738,999 Mortgage servicing rights 8,169 — — 18,722 18,722 Derivative assets 16,880 — 1,058 — 1,058 Financial liabilities HEI consolidated Deposit liabilities - time certificates 1,063,907 — 1,053,101 — 1,053,101 Other bank borrowings 750,000 — 747,508 — 747,508 Long-term debt, net—other than bank 2,842,429 — 2,133,225 — 2,133,225 Derivative liabilities 28,449 18 303 — 321 Hawaiian Electric consolidated Long-term debt, net 1,934,277 — 1,385,025 — 1,385,025 Fair value measurements on a recurring basis. Assets and liabilities measured at fair value on a recurring basis were as follows: March 31, 2024 December 31, 2023 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 $ — $ 1,035,134 $ — $ — $ 1,077,168 $ — U.S. Treasury and federal agency obligations — 9,637 — — 12,010 — Corporate bonds — 32,901 — — 32,903 — Mortgage revenue bonds — — 14,217 — — 14,358 $ — $ 1,077,672 $ 14,217 $ — $ 1,122,081 $ 14,358 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 136 $ — $ — $ 86 $ — Forward commitments (bank segment) 1 — 1 — — — — Interest rate swap (Other segment) 2 — 1,678 — — 972 — $ — $ 1,815 $ — $ — $ 1,058 $ — Derivative liabilities Forward commitments (bank segment) 1 $ 14 $ — $ — $ 18 $ — $ — Interest rate swap (Other segment) 2 — — — — 303 — $ 14 $ — $ — $ 18 $ 303 $ — 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 three months ended March 31, 2024 and 2023. The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: Three months ended March 31 Mortgage revenue bonds 2024 2023 (in thousands) Beginning balance $ 14,358 $ 14,902 Principal payments received (141) (136) Purchases — — Unrealized gain (loss) included in other comprehensive income — — Ending balance $ 14,217 $ 14,766 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 March 31, 2024, the weighted average discount rate was 5.64%, which was derived by incorporating a credit spread over the one month SOFR. 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 March 31, 2024 and December 31, 2023, there were no financial instruments measured at fair value on a nonrecurring basis. |
Basis of presentation (Policies
Basis of presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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. Segment Reporting . In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements, primarily through enhanced disclosure requirements of significant segment expenses. These amendments are effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. These amendments apply on a retrospective basis. The Company is currently evaluating the impact of this amendment on the Company’s consolidated financial statements. Income Taxes. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. The amendments are effective for annual periods beginning after December 15, 2024. These amendments apply on a prospective basis with a retrospective option. Early adoption is permitted. The Company is currently evaluating the impact of this amendment on the Company’s consolidated financial statements. Climate-related disclosures . In March 2024, the Securities and Exchange Commission (SEC) issued final climate-related disclosure rules under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors (climate disclosure rules). The rules will require annual disclosure of material greenhouse gas emissions as well as disclosure of governance, risk management and strategy related to material climate-related risks. In addition, the rules require (i) financial statement impacts of severe weather events and other natural conditions; (ii) a roll forward of carbon offset and renewable energy credit balances if material to the Company’s plan to achieve climate-related targets or goals; and (iii) material impacts on estimates and assumptions in the financial statements. The disclosure requirements will begin phasing in for annual periods beginning with calendar year 2025. The Company is currently evaluating the final rule to determine its impact on the Company’s consolidated financial statements. In April 2024, the SEC voluntarily stayed implementation of its climate disclosure rules pending completion of judicial review by the Court of Appeals for the Eighth Circuit. |
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: 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 certificates . 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, repurchase agreements and other bank borrowings, fair value is estimated using quantitative discounted cash flow models that require the use of interest rate inputs that are currently offered for advances, repurchase agreements and other bank borrowings 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) | 3 Months Ended |
Mar. 31, 2024 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of Windstorm and Wildfire Expenses | Year ended December 31, 2023 Three months ended March 31, 2024 (in thousands) Electric utility HEI Consolidated Electric utility HEI Consolidated Maui windstorm and wildfires related expenses: Legal expenses $ 24,737 $ 34,876 $ 10,735 $ 15,027 One ‘Ohana Initiative contribution 75,000 75,000 — — Other expense 15,071 28,507 13,832 15,091 Total Maui windstorm and wildfires related expenses 114,808 138,383 24,567 30,118 Insurance recoveries (98,613) (104,580) (9,969) (12,577) Deferral treatment approved by the PUC 1 (14,692) (14,692) (7,898) (7,898) Total Maui windstorm and wildfires related expenses, net of insurance recoveries and approved deferral treatment $ 1,503 $ 19,111 $ 6,700 $ 9,643 1 |
Segment financial information (
Segment financial information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | (in thousands) Electric utility Bank Other Total Three months ended March 31, 2024 Revenues $ 788,578 $ 105,144 $ 3,436 $ 897,158 Income (loss) before income taxes $ 50,900 $ 25,813 $ (22,444) $ 54,269 Income taxes (benefit) 11,180 4,879 (4,385) 11,674 Net income (loss) 39,720 20,934 (18,059) 42,595 Preferred stock dividends of subsidiaries 499 — (26) 473 Net income (loss) for common stock $ 39,221 $ 20,934 $ (18,033) $ 42,122 Total assets (at March 31, 2024) $ 7,274,862 $ 9,360,229 $ 288,117 $ 16,923,208 Three months ended March 31, 2023 Revenues $ 830,361 $ 93,857 $ 4,019 $ 928,237 Income (loss) before income taxes $ 61,108 $ 23,707 $ (14,511) $ 70,304 Income taxes (benefit) 13,600 5,145 (3,635) 15,110 Net income (loss) 47,508 18,562 (10,876) 55,194 Preferred stock dividends of subsidiaries 499 — (26) 473 Net income (loss) for common stock $ 47,009 $ 18,562 $ (10,850) $ 54,721 Total assets (at December 31, 2023) $ 7,283,554 $ 9,673,192 $ 287,075 $ 17,243,821 |
Electric utility segment (Table
Electric utility segment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Electric Utility Subsidiary [Abstract] | |
Schedule of Purchases From All IPPs | Purchases from all IPPs were as follows: Three months ended March 31 (in millions) 2024 2023 Kalaeloa $ 66 $ 67 HPOWER 17 18 Puna Geothermal Venture 13 8 Hamakua Energy 11 20 Kapolei Energy Storage 6 — Wind IPPs 30 24 Solar IPPs 15 14 Other IPPs 1 2 2 Total IPPs $ 160 $ 153 1 Includes hydro power and other PPAs. |
Schedule of Net Annual Incremental Amounts Proposed to be Collected (Refunded) | (in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Total Recovery of COVID-19 related costs $ 2.2 $ 0.5 $ 0.5 $ 3.2 Return of ERP benefit liability — (1.3) (1.9) (3.2) Net 2024 ARA revenues $ 2.2 $ (0.8) $ (1.4) $ — Note: Columns may not foot due to rounding. The net incremental amounts between the 2023 fall and 2024 spring revenue reports are shown in the following table. The amounts are to be collected (refunded) from June 1, 2024 through May 31, 2025 under the RBA rate tariffs, which were included in the 2024 spring revenue report filing. (in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Total Incremental RAM revenues and ARA revenues $ 2.2 $ (0.8) $ (1.4) $ — Incremental PIMs (net) (1.3) (1.1) (0.2) (2.6) Incremental MPIR/EPRM revenue adjustment 3.0 0.7 1.2 4.9 Incremental Pilot Process cost recovery 1.9 0.3 0.5 2.7 Net incremental amount to be collected under the RBA rate tariffs $ 5.8 $ (0.9) $ 0.1 $ 5.0 Note: Columns may not foot due to rounding. |
Schedule of Condensed Consolidating Statements of Income | Condensed Consolidating Statement of Income Three months ended March 31, 2024 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 564,180 117,609 106,789 — — $ 788,578 Expenses Fuel oil 210,199 31,185 42,912 — — 284,296 Purchased power 117,518 32,056 10,243 — — 159,817 Other operation and maintenance 90,884 24,590 28,416 — — 143,890 Depreciation 42,004 10,964 9,844 — — 62,812 Taxes, other than income taxes 53,409 10,957 10,042 — — 74,408 Total expenses 514,014 109,752 101,457 — — 725,223 Operating income 50,166 7,857 5,332 — — 63,355 Allowance for equity funds used during construction 2,821 349 470 — — 3,640 Equity in earnings of subsidiaries 6,024 — — — (6,024) — Retirement defined benefits credit (expense)—other than service costs 927 168 (23) — — 1,072 Interest expense and other charges, net (14,292) (2,914) (4,231) — 1,452 (19,985) Allowance for borrowed funds used during construction 1,079 107 200 — — 1,386 Interest Income 2,663 155 66 — (1,452) 1,432 Income before income taxes 49,388 5,722 1,814 — (6,024) 50,900 Income taxes 9,897 1,198 85 — — 11,180 Net income 39,491 4,524 1,729 — (6,024) 39,720 Preferred stock dividends of subsidiaries — 134 95 — — 229 Net income attributable to Hawaiian Electric 39,491 4,390 1,634 — (6,024) 39,491 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 39,221 4,390 1,634 — (6,024) $ 39,221 Condensed Consolidating Statement of Income Three months ended March 31, 2023 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiary Consolidating adjustments Hawaiian Electric Revenues $ 601,530 115,288 113,673 — (130) $ 830,361 Expenses Fuel oil 253,827 27,760 52,510 — — 334,097 Purchased power 110,279 34,086 8,396 — — 152,761 Other operation and maintenance 83,233 21,350 23,733 — — 128,316 Depreciation 41,038 10,635 9,254 — — 60,927 Taxes, other than income taxes 56,953 10,737 10,695 — — 78,385 Total expenses 545,330 104,568 104,588 — — 754,486 Operating income 56,200 10,720 9,085 — (130) 75,875 Allowance for equity funds used during construction 2,640 284 377 — — 3,301 Equity in earnings of subsidiaries 11,541 — — — (11,541) — Retirement defined benefits credit (expense)—other than service costs 904 169 (26) — — 1,047 Interest expense and other charges, net (14,557) (2,831) (2,988) — 130 (20,246) Allowance for borrowed funds used during construction 918 91 122 — — 1,131 Income before income taxes 57,646 8,433 6,570 — (11,541) 61,108 Income taxes 10,367 1,909 1,324 — — 13,600 Net income 47,279 6,524 5,246 — (11,541) 47,508 Preferred stock dividends of subsidiaries — 134 95 — — 229 Net income attributable to Hawaiian Electric 47,279 6,390 5,151 — (11,541) 47,279 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 47,009 6,390 5,151 — (11,541) $ 47,009 Statements of Income and Comprehensive Income Data Three months ended March 31 (in thousands) 2024 2023 Interest and dividend income Interest and fees on loans $ 72,971 $ 64,842 Interest and dividends on investment securities 14,964 14,637 Total interest and dividend income 87,935 79,479 Interest expense Interest on deposit liabilities 17,432 6,837 Interest on other borrowings 8,154 7,721 Total interest expense 25,586 14,558 Net interest income 62,349 64,921 Provision for credit losses (2,159) 1,175 Net interest income after provision for credit losses 64,508 63,746 Noninterest income Fees from other financial services 4,874 4,679 Fee income on deposit liabilities 4,898 4,599 Fee income on other financial products 2,743 2,744 Bank-owned life insurance 3,584 1,425 Mortgage banking income 424 130 Other income, net 686 801 Total noninterest income 17,209 14,378 Noninterest expense Compensation and employee benefits 32,459 30,204 Occupancy 5,063 5,588 Data processing 4,846 5,012 Services 4,151 2,595 Equipment 2,649 2,646 Office supplies, printing and postage 1,018 1,165 Marketing 776 1,016 Other expense 4,942 6,191 Total noninterest expense 55,904 54,417 Income before income taxes 25,813 23,707 Income taxes 4,879 5,145 Net income 20,934 18,562 Other comprehensive income (loss), net of taxes (9,768) 18,430 Comprehensive income $ 11,166 $ 36,992 Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended March 31 (in thousands) 2024 2023 Interest and dividend income $ 87,935 $ 79,479 Noninterest income 17,209 14,378 *Revenues-Bank 105,144 93,857 Total interest expense 25,586 14,558 Provision for credit losses (2,159) 1,175 Noninterest expense 55,904 54,417 Less: Retirement defined benefits credit—other than service costs (281) (187) *Expenses-Bank 79,612 70,337 *Operating income-Bank 25,532 23,520 Add back: Retirement defined benefits credit—other than service costs (281) (187) Income before income taxes $ 25,813 $ 23,707 |
Schedule of Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income Three months ended March 31, 2024 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Consolidated Net income for common stock $ 39,221 4,390 1,634 — (6,024) $ 39,221 Other comprehensive loss, net of taxes: Retirement benefit plans: Adjustment for amortization of net gains recognized during the period in net periodic benefit cost, net of taxes (508) (38) (59) — 97 (508) Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes 459 35 49 — (84) 459 Other comprehensive loss, net of taxes (49) (3) (10) — 13 (49) Comprehensive income attributable to common shareholder $ 39,172 4,387 1,624 — (6,011) $ 39,172 Condensed Consolidating Statement of Comprehensive Income Three months ended March 31, 2023 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiary Consolidating adjustments Hawaiian Electric Consolidated Net income for common stock $ 47,009 6,390 5,151 — (11,541) $ 47,009 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 (470) (56) (63) — 119 (470) Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes 425 50 57 — (107) 425 Other comprehensive loss, net of taxes (45) (6) (6) — 12 (45) Comprehensive income attributable to common shareholder $ 46,964 6,384 5,145 — (11,529) $ 46,964 |
Schedule of Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet March 31, 2024 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsi- diaries Consoli- Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 42,860 5,645 3,514 — — $ 52,019 Plant and equipment 5,442,481 1,470,238 1,389,730 — — 8,302,449 Right-of-use assets - finance lease 318,326 36,075 — — — 354,401 Less accumulated depreciation (1,962,980) (673,926) (612,183) — — (3,249,089) Construction in progress 249,111 36,013 45,619 — — 330,743 Utility property, plant and equipment, net 4,089,798 874,045 826,680 — — 5,790,523 Nonutility property, plant and equipment, less accumulated depreciation 5,294 115 1,532 — — 6,941 Total property, plant and equipment, net 4,095,092 874,160 828,212 — — 5,797,464 Investment in wholly owned subsidiaries, at equity 728,222 — — — (728,222) — Current assets Cash and cash equivalents 111,200 11,146 7,331 77 — 129,754 Restricted cash 2,000 — — — — 2,000 Advances to affiliates 93,000 — — — (93,000) — Customer accounts receivable, net 148,241 32,461 29,297 — — 209,999 Accrued unbilled revenues, net 124,691 24,052 22,712 — — 171,455 Other accounts receivable, net 47,107 7,619 21,606 — (38,307) 38,025 Fuel oil stock, at average cost 121,468 15,596 24,369 — — 161,433 Materials and supplies, at average cost 65,457 14,470 35,792 — — 115,719 Prepayments and other 52,174 6,713 14,572 — (1,434) 72,025 Regulatory assets 69,284 6,484 6,735 — — 82,503 Total current assets 834,622 118,541 162,414 77 (132,741) 982,913 Other long-term assets Operating lease right-of-use assets 33,628 25,733 8,856 — — 68,217 Regulatory assets 194,038 14,050 24,476 — — 232,564 Other 138,076 36,846 33,266 — (14,484) 193,704 Total other long-term assets 365,742 76,629 66,598 — (14,484) 494,485 Total assets $ 6,023,678 1,069,330 1,057,224 77 (875,447) $ 7,274,862 Capitalization and liabilities Capitalization Common stock equity $ 2,435,282 364,177 363,968 77 (728,222) $ 2,435,282 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,385,625 244,251 256,152 — — 1,886,028 Total capitalization 3,843,200 615,428 625,120 77 (728,222) 4,355,603 Current liabilities Current portion of operating lease liabilities 6,298 7,098 2,838 — — 16,234 Current portion of long-term debt 39,941 4,992 1,998 — — 46,931 Short-term borrowings from affiliate — — 93,000 — (93,000) — Accounts payable 139,015 28,690 30,931 — — 198,636 Interest and preferred dividends payable 35,795 3,808 4,870 — (547) 43,926 Taxes accrued, including revenue taxes 219,385 34,955 29,540 — (1,434) 282,446 Regulatory liabilities 11,488 8,353 6,308 — — 26,149 Other 81,609 27,837 36,320 — (37,760) 108,006 Total current liabilities 533,531 115,733 205,805 — (132,741) 722,328 Deferred credits and other liabilities Operating lease liabilities 33,090 18,989 6,320 — — 58,399 Finance lease liabilities 306,262 34,879 — — — 341,141 Deferred income taxes 283,734 51,699 68,328 — — 403,761 Regulatory liabilities 817,663 202,178 113,821 — — 1,133,662 Unamortized tax credits 59,188 11,351 11,232 — — 81,771 Defined benefit pension and other postretirement benefit plans liability 76,815 — — — (14,484) 62,331 Other 70,195 19,073 26,598 — — 115,866 Total deferred credits and other liabilities 1,646,947 338,169 226,299 — (14,484) 2,196,931 Total capitalization and liabilities $ 6,023,678 1,069,330 1,057,224 77 (875,447) $ 7,274,862 Condensed Consolidating Balance Sheet December 31, 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 5,398,281 1,459,639 1,374,890 — — 8,232,810 Finance lease right-of-use assets 306,099 36,075 — — — 342,174 Less accumulated depreciation (1,925,660) (666,581) (605,273) — — (3,197,514) Construction in progress 247,836 33,488 38,899 — — 320,223 Utility property, plant and equipment, net 4,069,415 868,266 812,110 — — 5,749,791 Nonutility property, plant and equipment, less accumulated depreciation 5,295 115 1,532 — — 6,942 Total property, plant and equipment, net 4,074,710 868,381 813,642 — — 5,756,733 Investment in wholly owned subsidiaries, at equity 722,211 — — — (722,211) — Current assets Cash and cash equivalents 89,755 10,658 5,587 77 — 106,077 Restricted cash 2,000 — — — — 2,000 Advances to affiliates 70,500 — — — (70,500) — Customer accounts receivable, net 172,747 38,216 33,346 — — 244,309 Accrued unbilled revenues, net 136,367 25,102 24,175 — — 185,644 Other accounts receivable, net 143,160 13,318 32,521 — (77,480) 111,519 Fuel oil stock, at average cost 108,228 17,968 22,041 — — 148,237 Materials and supplies, at average cost 64,334 14,397 35,702 — — 114,433 Prepayments and other 40,767 7,724 11,638 — (1,638) 58,491 Regulatory assets 58,920 5,771 3,762 — — 68,453 Total current assets 886,778 133,154 168,772 77 (149,618) 1,039,163 Other long-term assets Operating lease right-of-use assets 34,856 27,470 9,551 — — 71,877 Regulatory assets 189,417 13,575 23,359 — — 226,351 Other 134,033 36,439 33,129 — (14,171) 189,430 Total other long-term assets 358,306 77,484 66,039 — (14,171) 487,658 Total assets $ 6,042,005 1,079,019 1,048,453 77 (886,000) $ 7,283,554 Capitalization and liabilities Capitalization Common stock equity $ 2,409,110 359,790 362,344 77 (722,211) $ 2,409,110 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,426,516 249,339 258,422 — — 1,934,277 Total capitalization 3,857,919 616,129 625,766 77 (722,211) 4,377,680 Current liabilities Current portion of operating lease liabilities 6,788 7,025 2,804 — — 16,617 Short-term borrowings-affiliate — — 70,500 — (70,500) — Accounts payable 136,102 29,418 25,520 — — 191,040 Interest and preferred dividends payable 17,085 3,098 3,074 — (375) 22,882 Taxes accrued, including revenue taxes 211,840 43,932 37,808 — (1,638) 291,942 Regulatory liabilities 20,013 8,508 8,038 — — 36,559 Other 165,131 33,240 50,170 — (77,105) 171,436 Total current liabilities 556,959 125,221 197,914 — (149,618) 730,476 Deferred credits and other liabilities Operating lease liabilities 34,262 20,792 7,044 — — 62,098 Finance lease liabilities 295,935 35,043 — — — 330,978 Deferred income taxes 280,029 51,661 67,311 — — 399,001 Regulatory liabilities 803,404 199,173 111,554 — — 1,114,131 Unamortized tax credits 61,130 11,650 11,532 — — 84,312 Defined benefit pension and other postretirement benefit plans liability 74,842 — — — (14,171) 60,671 Other 77,525 19,350 27,332 — 124,207 Total deferred credits and other liabilities 1,627,127 337,669 224,773 — (14,171) 2,175,398 Total capitalization and liabilities $ 6,042,005 1,079,019 1,048,453 77 (886,000) $ 7,283,554 Balance Sheets Data (in thousands) March 31, 2024 December 31, 2023 Assets Cash and due from banks $ 126,259 $ 184,383 Interest-bearing deposits 100,681 251,072 Cash and cash equivalents 226,940 435,455 Investment securities Available-for-sale, at fair value 1,091,889 1,136,439 Held-to-maturity, at amortized cost (fair value of $1,074,735 and $1,103,668, at March 31, 2024 and December 31, 2023, respectively) 1,191,074 1,201,314 Stock in Federal Home Loan Bank, at cost 32,489 14,728 Loans held for investment 6,116,722 6,180,810 Allowance for credit losses (71,057) (74,372) Net loans 6,045,665 6,106,438 Loans held for sale, at lower of cost or fair value 2,923 15,168 Other 687,059 681,460 Goodwill 82,190 82,190 Total assets $ 9,360,229 $ 9,673,192 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 2,557,240 $ 2,599,762 Deposit liabilities—interest-bearing 5,447,824 5,546,016 Other borrowings 593,000 750,000 Other 220,570 247,563 Total liabilities 8,818,634 9,143,341 Common stock 1 1 Additional paid-in capital 358,645 358,067 Retained earnings 484,989 464,055 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (293,466) $ (282,963) Retirement benefit plans (8,574) (302,040) (9,309) (292,272) Total shareholder’s equity 541,595 529,851 Total liabilities and shareholder’s equity $ 9,360,229 $ 9,673,192 Other assets Bank-owned life insurance $ 191,448 $ 187,857 Premises and equipment, net 184,684 187,042 Accrued interest receivable 29,697 28,472 Mortgage-servicing rights 8,050 8,169 Low-income housing investments 108,314 112,234 Deferred tax asset 108,240 104,292 Other 56,626 53,394 $ 687,059 $ 681,460 Other liabilities Accrued expenses $ 114,289 $ 115,231 Cashier’s checks 34,908 40,479 Advance payments by borrowers 5,559 10,107 Other 65,814 81,746 $ 220,570 $ 247,563 |
Schedule of Condensed Consolidating Statement of Changes in Common Stock Equity | Condensed Consolidating Statement of Changes in Common Stock Equity Three months ended March 31, 2024 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating Hawaiian Electric Balance, December 31, 2023 $ 2,409,110 359,790 362,344 77 (722,211) $ 2,409,110 Net income for common stock 39,221 4,390 1,634 — (6,024) 39,221 Other comprehensive loss, net of taxes (49) (3) (10) — 13 (49) Common stock dividends (13,000) — — — — (13,000) Balance, March 31, 2024 $ 2,435,282 364,177 363,968 77 (728,222) $ 2,435,282 Condensed Consolidating Statement of Changes in Common Stock Equity Three months ended March 31, 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 47,009 6,390 5,151 — (11,541) 47,009 Other comprehensive loss, net of taxes (45) (6) (6) — 12 (45) Common stock dividends (32,250) (4,475) (3,675) — 8,150 (32,250) Balance, March 31, 2023 $ 2,358,884 346,629 358,506 77 (705,212) $ 2,358,884 |
Schedule of Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Three months ended March 31, 2024 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating Hawaiian Electric Net cash provided by operating activities $ 103,556 15,965 7,680 — — $ 127,201 Cash flows from investing activities Capital expenditures (55,261) (14,954) (27,817) — — (98,032) Advances to affiliates (22,500) — — — 22,500 — Other (1,093) (240) (308) — — (1,641) Net cash used in investing activities (78,854) (15,194) (28,125) — 22,500 (99,673) Cash flows from financing activities Preferred stock dividends of Hawaiian Electric and subsidiaries (499) — — — — (499) Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less — — 22,500 — (22,500) — Payments of obligations under finance leases (1,646) (154) — (1,800) Other (1,112) (129) (311) — — (1,552) Net cash provided by (used in) financing activities (3,257) (283) 22,189 — (22,500) (3,851) Net increase in cash, cash equivalents and restricted cash 21,445 488 1,744 — — 23,677 Cash, cash equivalents and restricted cash, beginning of period 91,755 10,658 5,587 77 — 108,077 Cash, cash equivalents and restricted cash, end of period 113,200 11,146 7,331 77 — 131,754 Less: Restricted cash (2,000) — — — — (2,000) Cash and cash equivalents, end of period $ 111,200 11,146 7,331 77 — $ 129,754 Condensed Consolidating Statement of Cash Flows Three months ended March 31, 2023 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net cash provided by operating activities $ 143,356 18,733 15,416 — (8,150) $ 169,355 Cash flows from investing activities Capital expenditures (74,916) (20,747) (26,476) — — (122,139) Advances from affiliates — 4,500 21,700 — (26,200) — Other 1,094 153 298 — — 1,545 Net cash used in investing activities (73,822) (16,094) (4,478) — (26,200) (120,594) Cash flows from financing activities Common stock dividends (32,250) (4,475) (3,675) — 8,150 (32,250) Preferred stock dividends of Hawaiian Electric and subsidiaries (270) (134) (95) — — (499) Proceeds from issuance of long-term debt 100,000 25,000 25,000 — — 150,000 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 (575) — — — — (575) Other (458) (116) (116) — — (690) Net cash provided by (used in) financing activities (47,720) 20,275 21,114 — 34,350 28,019 Net increase in cash and cash equivalents 21,814 22,914 32,052 — — 76,780 Cash and cash equivalents, beginning of period 27,579 5,092 6,494 77 — 39,242 Cash and cash equivalents, end of period $ 49,393 28,006 38,546 77 — $ 116,022 |
Bank segment (Tables)
Bank segment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Bank Subsidiary [Abstract] | |
Schedule of Statements of Income Data | Condensed Consolidating Statement of Income Three months ended March 31, 2024 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 564,180 117,609 106,789 — — $ 788,578 Expenses Fuel oil 210,199 31,185 42,912 — — 284,296 Purchased power 117,518 32,056 10,243 — — 159,817 Other operation and maintenance 90,884 24,590 28,416 — — 143,890 Depreciation 42,004 10,964 9,844 — — 62,812 Taxes, other than income taxes 53,409 10,957 10,042 — — 74,408 Total expenses 514,014 109,752 101,457 — — 725,223 Operating income 50,166 7,857 5,332 — — 63,355 Allowance for equity funds used during construction 2,821 349 470 — — 3,640 Equity in earnings of subsidiaries 6,024 — — — (6,024) — Retirement defined benefits credit (expense)—other than service costs 927 168 (23) — — 1,072 Interest expense and other charges, net (14,292) (2,914) (4,231) — 1,452 (19,985) Allowance for borrowed funds used during construction 1,079 107 200 — — 1,386 Interest Income 2,663 155 66 — (1,452) 1,432 Income before income taxes 49,388 5,722 1,814 — (6,024) 50,900 Income taxes 9,897 1,198 85 — — 11,180 Net income 39,491 4,524 1,729 — (6,024) 39,720 Preferred stock dividends of subsidiaries — 134 95 — — 229 Net income attributable to Hawaiian Electric 39,491 4,390 1,634 — (6,024) 39,491 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 39,221 4,390 1,634 — (6,024) $ 39,221 Condensed Consolidating Statement of Income Three months ended March 31, 2023 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiary Consolidating adjustments Hawaiian Electric Revenues $ 601,530 115,288 113,673 — (130) $ 830,361 Expenses Fuel oil 253,827 27,760 52,510 — — 334,097 Purchased power 110,279 34,086 8,396 — — 152,761 Other operation and maintenance 83,233 21,350 23,733 — — 128,316 Depreciation 41,038 10,635 9,254 — — 60,927 Taxes, other than income taxes 56,953 10,737 10,695 — — 78,385 Total expenses 545,330 104,568 104,588 — — 754,486 Operating income 56,200 10,720 9,085 — (130) 75,875 Allowance for equity funds used during construction 2,640 284 377 — — 3,301 Equity in earnings of subsidiaries 11,541 — — — (11,541) — Retirement defined benefits credit (expense)—other than service costs 904 169 (26) — — 1,047 Interest expense and other charges, net (14,557) (2,831) (2,988) — 130 (20,246) Allowance for borrowed funds used during construction 918 91 122 — — 1,131 Income before income taxes 57,646 8,433 6,570 — (11,541) 61,108 Income taxes 10,367 1,909 1,324 — — 13,600 Net income 47,279 6,524 5,246 — (11,541) 47,508 Preferred stock dividends of subsidiaries — 134 95 — — 229 Net income attributable to Hawaiian Electric 47,279 6,390 5,151 — (11,541) 47,279 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 47,009 6,390 5,151 — (11,541) $ 47,009 Statements of Income and Comprehensive Income Data Three months ended March 31 (in thousands) 2024 2023 Interest and dividend income Interest and fees on loans $ 72,971 $ 64,842 Interest and dividends on investment securities 14,964 14,637 Total interest and dividend income 87,935 79,479 Interest expense Interest on deposit liabilities 17,432 6,837 Interest on other borrowings 8,154 7,721 Total interest expense 25,586 14,558 Net interest income 62,349 64,921 Provision for credit losses (2,159) 1,175 Net interest income after provision for credit losses 64,508 63,746 Noninterest income Fees from other financial services 4,874 4,679 Fee income on deposit liabilities 4,898 4,599 Fee income on other financial products 2,743 2,744 Bank-owned life insurance 3,584 1,425 Mortgage banking income 424 130 Other income, net 686 801 Total noninterest income 17,209 14,378 Noninterest expense Compensation and employee benefits 32,459 30,204 Occupancy 5,063 5,588 Data processing 4,846 5,012 Services 4,151 2,595 Equipment 2,649 2,646 Office supplies, printing and postage 1,018 1,165 Marketing 776 1,016 Other expense 4,942 6,191 Total noninterest expense 55,904 54,417 Income before income taxes 25,813 23,707 Income taxes 4,879 5,145 Net income 20,934 18,562 Other comprehensive income (loss), net of taxes (9,768) 18,430 Comprehensive income $ 11,166 $ 36,992 Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended March 31 (in thousands) 2024 2023 Interest and dividend income $ 87,935 $ 79,479 Noninterest income 17,209 14,378 *Revenues-Bank 105,144 93,857 Total interest expense 25,586 14,558 Provision for credit losses (2,159) 1,175 Noninterest expense 55,904 54,417 Less: Retirement defined benefits credit—other than service costs (281) (187) *Expenses-Bank 79,612 70,337 *Operating income-Bank 25,532 23,520 Add back: Retirement defined benefits credit—other than service costs (281) (187) Income before income taxes $ 25,813 $ 23,707 |
Schedule of Statements of Comprehensive Income Data | Statements of Income and Comprehensive Income Data Three months ended March 31 (in thousands) 2024 2023 Interest and dividend income Interest and fees on loans $ 72,971 $ 64,842 Interest and dividends on investment securities 14,964 14,637 Total interest and dividend income 87,935 79,479 Interest expense Interest on deposit liabilities 17,432 6,837 Interest on other borrowings 8,154 7,721 Total interest expense 25,586 14,558 Net interest income 62,349 64,921 Provision for credit losses (2,159) 1,175 Net interest income after provision for credit losses 64,508 63,746 Noninterest income Fees from other financial services 4,874 4,679 Fee income on deposit liabilities 4,898 4,599 Fee income on other financial products 2,743 2,744 Bank-owned life insurance 3,584 1,425 Mortgage banking income 424 130 Other income, net 686 801 Total noninterest income 17,209 14,378 Noninterest expense Compensation and employee benefits 32,459 30,204 Occupancy 5,063 5,588 Data processing 4,846 5,012 Services 4,151 2,595 Equipment 2,649 2,646 Office supplies, printing and postage 1,018 1,165 Marketing 776 1,016 Other expense 4,942 6,191 Total noninterest expense 55,904 54,417 Income before income taxes 25,813 23,707 Income taxes 4,879 5,145 Net income 20,934 18,562 Other comprehensive income (loss), net of taxes (9,768) 18,430 Comprehensive income $ 11,166 $ 36,992 Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended March 31 (in thousands) 2024 2023 Interest and dividend income $ 87,935 $ 79,479 Noninterest income 17,209 14,378 *Revenues-Bank 105,144 93,857 Total interest expense 25,586 14,558 Provision for credit losses (2,159) 1,175 Noninterest expense 55,904 54,417 Less: Retirement defined benefits credit—other than service costs (281) (187) *Expenses-Bank 79,612 70,337 *Operating income-Bank 25,532 23,520 Add back: Retirement defined benefits credit—other than service costs (281) (187) Income before income taxes $ 25,813 $ 23,707 |
Schedule of Balance Sheets Data | Condensed Consolidating Balance Sheet March 31, 2024 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsi- diaries Consoli- Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 42,860 5,645 3,514 — — $ 52,019 Plant and equipment 5,442,481 1,470,238 1,389,730 — — 8,302,449 Right-of-use assets - finance lease 318,326 36,075 — — — 354,401 Less accumulated depreciation (1,962,980) (673,926) (612,183) — — (3,249,089) Construction in progress 249,111 36,013 45,619 — — 330,743 Utility property, plant and equipment, net 4,089,798 874,045 826,680 — — 5,790,523 Nonutility property, plant and equipment, less accumulated depreciation 5,294 115 1,532 — — 6,941 Total property, plant and equipment, net 4,095,092 874,160 828,212 — — 5,797,464 Investment in wholly owned subsidiaries, at equity 728,222 — — — (728,222) — Current assets Cash and cash equivalents 111,200 11,146 7,331 77 — 129,754 Restricted cash 2,000 — — — — 2,000 Advances to affiliates 93,000 — — — (93,000) — Customer accounts receivable, net 148,241 32,461 29,297 — — 209,999 Accrued unbilled revenues, net 124,691 24,052 22,712 — — 171,455 Other accounts receivable, net 47,107 7,619 21,606 — (38,307) 38,025 Fuel oil stock, at average cost 121,468 15,596 24,369 — — 161,433 Materials and supplies, at average cost 65,457 14,470 35,792 — — 115,719 Prepayments and other 52,174 6,713 14,572 — (1,434) 72,025 Regulatory assets 69,284 6,484 6,735 — — 82,503 Total current assets 834,622 118,541 162,414 77 (132,741) 982,913 Other long-term assets Operating lease right-of-use assets 33,628 25,733 8,856 — — 68,217 Regulatory assets 194,038 14,050 24,476 — — 232,564 Other 138,076 36,846 33,266 — (14,484) 193,704 Total other long-term assets 365,742 76,629 66,598 — (14,484) 494,485 Total assets $ 6,023,678 1,069,330 1,057,224 77 (875,447) $ 7,274,862 Capitalization and liabilities Capitalization Common stock equity $ 2,435,282 364,177 363,968 77 (728,222) $ 2,435,282 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,385,625 244,251 256,152 — — 1,886,028 Total capitalization 3,843,200 615,428 625,120 77 (728,222) 4,355,603 Current liabilities Current portion of operating lease liabilities 6,298 7,098 2,838 — — 16,234 Current portion of long-term debt 39,941 4,992 1,998 — — 46,931 Short-term borrowings from affiliate — — 93,000 — (93,000) — Accounts payable 139,015 28,690 30,931 — — 198,636 Interest and preferred dividends payable 35,795 3,808 4,870 — (547) 43,926 Taxes accrued, including revenue taxes 219,385 34,955 29,540 — (1,434) 282,446 Regulatory liabilities 11,488 8,353 6,308 — — 26,149 Other 81,609 27,837 36,320 — (37,760) 108,006 Total current liabilities 533,531 115,733 205,805 — (132,741) 722,328 Deferred credits and other liabilities Operating lease liabilities 33,090 18,989 6,320 — — 58,399 Finance lease liabilities 306,262 34,879 — — — 341,141 Deferred income taxes 283,734 51,699 68,328 — — 403,761 Regulatory liabilities 817,663 202,178 113,821 — — 1,133,662 Unamortized tax credits 59,188 11,351 11,232 — — 81,771 Defined benefit pension and other postretirement benefit plans liability 76,815 — — — (14,484) 62,331 Other 70,195 19,073 26,598 — — 115,866 Total deferred credits and other liabilities 1,646,947 338,169 226,299 — (14,484) 2,196,931 Total capitalization and liabilities $ 6,023,678 1,069,330 1,057,224 77 (875,447) $ 7,274,862 Condensed Consolidating Balance Sheet December 31, 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 5,398,281 1,459,639 1,374,890 — — 8,232,810 Finance lease right-of-use assets 306,099 36,075 — — — 342,174 Less accumulated depreciation (1,925,660) (666,581) (605,273) — — (3,197,514) Construction in progress 247,836 33,488 38,899 — — 320,223 Utility property, plant and equipment, net 4,069,415 868,266 812,110 — — 5,749,791 Nonutility property, plant and equipment, less accumulated depreciation 5,295 115 1,532 — — 6,942 Total property, plant and equipment, net 4,074,710 868,381 813,642 — — 5,756,733 Investment in wholly owned subsidiaries, at equity 722,211 — — — (722,211) — Current assets Cash and cash equivalents 89,755 10,658 5,587 77 — 106,077 Restricted cash 2,000 — — — — 2,000 Advances to affiliates 70,500 — — — (70,500) — Customer accounts receivable, net 172,747 38,216 33,346 — — 244,309 Accrued unbilled revenues, net 136,367 25,102 24,175 — — 185,644 Other accounts receivable, net 143,160 13,318 32,521 — (77,480) 111,519 Fuel oil stock, at average cost 108,228 17,968 22,041 — — 148,237 Materials and supplies, at average cost 64,334 14,397 35,702 — — 114,433 Prepayments and other 40,767 7,724 11,638 — (1,638) 58,491 Regulatory assets 58,920 5,771 3,762 — — 68,453 Total current assets 886,778 133,154 168,772 77 (149,618) 1,039,163 Other long-term assets Operating lease right-of-use assets 34,856 27,470 9,551 — — 71,877 Regulatory assets 189,417 13,575 23,359 — — 226,351 Other 134,033 36,439 33,129 — (14,171) 189,430 Total other long-term assets 358,306 77,484 66,039 — (14,171) 487,658 Total assets $ 6,042,005 1,079,019 1,048,453 77 (886,000) $ 7,283,554 Capitalization and liabilities Capitalization Common stock equity $ 2,409,110 359,790 362,344 77 (722,211) $ 2,409,110 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,426,516 249,339 258,422 — — 1,934,277 Total capitalization 3,857,919 616,129 625,766 77 (722,211) 4,377,680 Current liabilities Current portion of operating lease liabilities 6,788 7,025 2,804 — — 16,617 Short-term borrowings-affiliate — — 70,500 — (70,500) — Accounts payable 136,102 29,418 25,520 — — 191,040 Interest and preferred dividends payable 17,085 3,098 3,074 — (375) 22,882 Taxes accrued, including revenue taxes 211,840 43,932 37,808 — (1,638) 291,942 Regulatory liabilities 20,013 8,508 8,038 — — 36,559 Other 165,131 33,240 50,170 — (77,105) 171,436 Total current liabilities 556,959 125,221 197,914 — (149,618) 730,476 Deferred credits and other liabilities Operating lease liabilities 34,262 20,792 7,044 — — 62,098 Finance lease liabilities 295,935 35,043 — — — 330,978 Deferred income taxes 280,029 51,661 67,311 — — 399,001 Regulatory liabilities 803,404 199,173 111,554 — — 1,114,131 Unamortized tax credits 61,130 11,650 11,532 — — 84,312 Defined benefit pension and other postretirement benefit plans liability 74,842 — — — (14,171) 60,671 Other 77,525 19,350 27,332 — 124,207 Total deferred credits and other liabilities 1,627,127 337,669 224,773 — (14,171) 2,175,398 Total capitalization and liabilities $ 6,042,005 1,079,019 1,048,453 77 (886,000) $ 7,283,554 Balance Sheets Data (in thousands) March 31, 2024 December 31, 2023 Assets Cash and due from banks $ 126,259 $ 184,383 Interest-bearing deposits 100,681 251,072 Cash and cash equivalents 226,940 435,455 Investment securities Available-for-sale, at fair value 1,091,889 1,136,439 Held-to-maturity, at amortized cost (fair value of $1,074,735 and $1,103,668, at March 31, 2024 and December 31, 2023, respectively) 1,191,074 1,201,314 Stock in Federal Home Loan Bank, at cost 32,489 14,728 Loans held for investment 6,116,722 6,180,810 Allowance for credit losses (71,057) (74,372) Net loans 6,045,665 6,106,438 Loans held for sale, at lower of cost or fair value 2,923 15,168 Other 687,059 681,460 Goodwill 82,190 82,190 Total assets $ 9,360,229 $ 9,673,192 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 2,557,240 $ 2,599,762 Deposit liabilities—interest-bearing 5,447,824 5,546,016 Other borrowings 593,000 750,000 Other 220,570 247,563 Total liabilities 8,818,634 9,143,341 Common stock 1 1 Additional paid-in capital 358,645 358,067 Retained earnings 484,989 464,055 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (293,466) $ (282,963) Retirement benefit plans (8,574) (302,040) (9,309) (292,272) Total shareholder’s equity 541,595 529,851 Total liabilities and shareholder’s equity $ 9,360,229 $ 9,673,192 Other assets Bank-owned life insurance $ 191,448 $ 187,857 Premises and equipment, net 184,684 187,042 Accrued interest receivable 29,697 28,472 Mortgage-servicing rights 8,050 8,169 Low-income housing investments 108,314 112,234 Deferred tax asset 108,240 104,292 Other 56,626 53,394 $ 687,059 $ 681,460 Other liabilities Accrued expenses $ 114,289 $ 115,231 Cashier’s checks 34,908 40,479 Advance payments by borrowers 5,559 10,107 Other 65,814 81,746 $ 220,570 $ 247,563 |
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 March 31, 2024 Available-for-sale U.S. Treasury and federal agency obligations $ 10,052 $ — $ (415) $ 9,637 — $ — $ — 8 $ 9,637 $ (415) Mortgage-backed securities* 1,256,426 — (221,292) 1,035,134 2 1,340 (17) 115 1,033,794 (221,275) Corporate bonds 35,205 — (2,304) 32,901 — — — 3 32,901 (2,304) Mortgage revenue bonds 14,217 — — 14,217 — — — — — — $ 1,315,900 $ — $ (224,011) $ 1,091,889 2 $ 1,340 $ (17) 126 $ 1,076,332 $ (223,994) Held-to-maturity U.S. Treasury and federal agency obligations $ 59,923 $ — $ (7,830) $ 52,093 — $ — $ — 3 $ 52,094 $ (7,830) Mortgage-backed securities* 1,131,151 85 (108,594) 1,022,642 55 549,389 (18,604) 45 448,729 (89,990) $ 1,191,074 $ 85 $ (116,424) $ 1,074,735 55 $ 549,389 $ (18,604) 48 $ 500,823 $ (97,820) December 31, 2023 Available-for-sale U.S. Treasury and federal agency obligations $ 12,437 $ — $ (427) $ 12,010 — $ — $ — 9 $ 12,010 $ (427) Mortgage-backed securities* 1,279,852 — (202,684) 1,077,168 3 1,649 (22) 116 1,075,519 (202,662) Corporate bonds 35,239 — (2,336) 32,903 — — — 3 32,903 (2,336) Mortgage revenue bonds 14,358 — — 14,358 — — — — — — $ 1,341,886 $ — $ (205,447) $ 1,136,439 3 $ 1,649 $ (22) 128 $ 1,120,432 $ (205,425) Held-to-maturity U.S. Treasury and federal agency obligations $ 59,917 $ — $ (7,135) $ 52,782 — $ — $ — 3 $ 52,782 $ (7,135) Mortgage-backed securities* 1,141,397 2,221 (92,732) 1,050,886 37 378,326 (7,610) 43 432,082 (85,122) $ 1,201,314 $ 2,221 $ (99,867) $ 1,103,668 37 $ 378,326 $ (7,610) 46 $ 484,864 $ (92,257) * 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: March 31, 2024 Amortized Fair value (in thousands) Available-for-sale Due in one year or less $ 777 $ 759 Due after one year through five years 44,480 41,779 Due after five years through ten years 14,217 14,217 Due after ten years — — 59,474 56,755 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,256,426 1,035,134 Total available-for-sale securities $ 1,315,900 $ 1,091,889 Held-to-maturity Due in one year or less $ — $ — Due after one year through five years 39,841 35,225 Due after five years through ten years 20,082 16,868 Due after ten years — — 59,923 52,093 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,131,151 1,022,642 Total held-to-maturity securities $ 1,191,074 $ 1,074,735 |
Schedule of Components of Loans Receivable | The components of loans were summarized as follows: March 31, 2024 December 31, 2023 (in thousands) Real estate: Residential 1-4 family $ 2,598,091 $ 2,595,162 Commercial real estate 1,368,394 1,374,038 Home equity line of credit 996,049 1,017,207 Residential land 18,197 18,364 Commercial construction 185,857 172,405 Residential construction 17,756 17,843 Total real estate 5,184,344 5,195,019 Commercial 704,638 743,303 Consumer 256,273 272,256 Total loans 6,145,255 6,210,578 Less: Deferred fees and discounts (28,533) (29,768) Allowance for credit losses (71,057) (74,372) Total loans, net $ 6,045,665 $ 6,106,438 |
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 March 31, 2024 Allowance for credit losses: Beginning balance $ 7,435 $ 22,185 $ 7,778 $ 621 $ 3,603 $ 43 $ 9,122 $ 23,585 $ 74,372 Charge-offs (842) — — — — — (114) (2,719) (3,675) Recoveries 186 — 238 — — — 95 1,000 1,519 Provision (373) (1,851) 57 51 (202) (2) (1,489) 2,650 (1,159) Ending balance $ 6,406 $ 20,334 $ 8,073 $ 672 $ 3,401 $ 41 $ 7,614 $ 24,516 $ 71,057 Three months ended March 31, 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 (809) — (63) — — — (227) (2,323) (3,422) Recoveries 4 — 17 — — — 398 908 1,327 Provision (853) 803 (26) (97) (460) (18) (661) 2,487 1,175 Ending balance $ 4,612 $ 22,701 $ 6,053 $ 620 $ 735 $ 28 $ 11,936 $ 24,611 $ 71,296 |
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 March 31, 2024 Allowance for loan commitments: Beginning balance $ 600 $ 4,300 $ 200 $ 5,100 Provision — (1,200) 200 (1,000) Ending balance $ 600 $ 3,100 $ 400 $ 4,100 Three months ended March 31, 2023 Allowance for loan commitments: Beginning balance $ 400 $ 2,600 $ 1,400 $ 4,400 Provision — — — — 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) 2024 2023 2022 2021 2020 Prior Revolving Converted to term loans Total March 31, 2024 Residential 1-4 family Current $ 43,536 $ 260,253 $ 401,887 $ 722,614 $ 395,190 $ 761,888 $ — $ — $ 2,585,368 30-59 days past due — — — — — 2,191 — — 2,191 60-89 days past due — — — — — 773 — — 773 Greater than 89 days past due — — 1,928 1,893 1,129 4,809 — — 9,759 43,536 260,253 403,815 724,507 396,319 769,661 — — 2,598,091 Home equity line of credit Current — — — — — — 929,649 62,087 991,736 30-59 days past due — — — — — — 971 700 1,671 60-89 days past due — — — — — — 740 169 909 Greater than 89 days past due — — — — — — 1,418 315 1,733 — — — — — — 932,778 63,271 996,049 Residential land Current 1,955 3,748 3,888 5,467 1,746 718 — — 17,522 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — 675 — — — — — 675 1,955 3,748 4,563 5,467 1,746 718 — — 18,197 Residential construction Current 388 6,189 10,440 739 — — — — 17,756 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 388 6,189 10,440 739 — — — — 17,756 Consumer Current 8,829 76,930 141,903 8,207 1,127 406 10,207 2,395 250,004 30-59 days past due 205 612 1,559 167 11 11 152 110 2,827 60-89 days past due — 613 1,150 84 15 3 70 49 1,984 Greater than 89 days past due — 369 681 68 26 10 90 214 1,458 9,034 78,524 145,293 8,526 1,179 430 10,519 2,768 256,273 Commercial real estate Pass 8,436 104,489 382,853 191,109 265,611 363,035 15,482 — 1,331,015 Special Mention — — 1,975 — — 17,338 — — 19,313 Substandard — — — 1,527 — 13,991 — — 15,518 Doubtful — — — — — 2,548 — — 2,548 8,436 104,489 384,828 192,636 265,611 396,912 15,482 — 1,368,394 Commercial construction Pass — 55,494 39,399 26,545 1,333 — 63,086 — 185,857 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — 55,494 39,399 26,545 1,333 — 63,086 — 185,857 Commercial Pass 11,996 102,699 178,426 105,411 72,558 83,332 99,943 6,284 660,649 Special Mention — 19,524 6,774 933 — 228 7,176 — 34,635 Substandard — — 2,869 1,790 — 3,182 1,276 139 9,256 Doubtful — — — — 98 — — — 98 11,996 122,223 188,069 108,134 72,656 86,742 108,395 6,423 704,638 Total loans $ 75,345 $ 630,920 $ 1,176,407 $ 1,066,554 $ 738,844 $ 1,254,463 $ 1,130,260 $ 72,462 $ 6,145,255 Term Loans by Origination Year Revolving Loans (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Converted to term loans Total December 31, 2023 Residential 1-4 family Current $ 263,605 $ 407,304 $ 729,256 $ 399,766 $ 104,487 $ 672,408 $ — $ — $ 2,576,826 30-59 days past due — 708 — 268 — 3,525 — — 4,501 60-89 days past due — 726 2,694 — — 1,745 — — 5,165 Greater than 89 days past due — 2,519 871 1,129 489 3,662 — — 8,670 263,605 411,257 732,821 401,163 104,976 681,340 — — 2,595,162 Home equity line of credit Current — — — — — — 954,461 59,146 1,013,607 30-59 days past due — — — — — — 1,219 262 1,481 60-89 days past due — — — — — — 597 — 597 Greater than 89 days past due — — — — — — 1,111 411 1,522 — — — — — — 957,388 59,819 1,017,207 Residential land Current 3,788 4,097 7,234 1,847 — 723 — — 17,689 30-59 days past due — — — — — — — — — 60-89 days past due — 675 — — — — — — 675 Greater than 89 days past due — — — — — — — — — 3,788 4,772 7,234 1,847 — 723 — — 18,364 Residential construction Current 5,369 10,984 1,490 — — — — — 17,843 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — Greater than 89 days past due — — — — — — — — — 5,369 10,984 1,490 — — — — — 17,843 Consumer Current 87,686 153,239 9,852 1,654 451 200 10,663 2,779 266,524 30-59 days past due 805 1,314 176 29 24 — 56 163 2,567 60-89 days past due 385 886 114 41 21 — 60 69 1,576 Greater than 89 days past due 354 786 101 24 34 — 67 223 1,589 89,230 156,225 10,243 1,748 530 200 10,846 3,234 272,256 Commercial real estate Pass 104,368 384,144 180,986 267,458 65,625 307,367 15,482 — 1,325,430 Special Mention — 1,975 11,159 — 14,110 3,008 — — 30,252 Substandard — — 1,538 — 11,048 5,770 — — 18,356 Doubtful — — — — — — — — — 104,368 386,119 193,683 267,458 90,783 316,145 15,482 — 1,374,038 Commercial construction Pass 45,863 33,240 26,133 1,333 — — 65,836 — 172,405 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 45,863 33,240 26,133 1,333 — — 65,836 — 172,405 Commercial Pass 124,667 199,796 106,669 73,976 37,580 80,012 87,206 6,250 716,156 Special Mention 1,860 6,989 951 — 250 — 7,352 — 17,402 Substandard — 2,962 1,848 98 60 3,369 1,275 133 9,745 Doubtful — — — — — — — — — 126,527 209,747 109,468 74,074 37,890 83,381 95,833 6,383 743,303 Total loans $ 638,750 $ 1,212,344 $ 1,081,072 $ 747,623 $ 234,179 $ 1,081,789 $ 1,145,385 $ 69,436 $ 6,210,578 Gross charge-offs by portfolio segment and vintage were as follows: (in thousands) 2024 2023 2022 2021 2020 Prior Total Three months ended March 31, 2024 Residential 1-4 family $ — $ — $ 361 $ 277 $ — $ 204 $ 842 Commercial real estate — — — — — — — Home equity line of credit — — — — — — — Residential land — — — — — — — Commercial construction — — — — — — — Residential construction — — — — — — — Commercial — — — 14 — 100 114 Consumer 166 937 1,342 127 36 111 2,719 Total $ 166 $ 937 $ 1,703 $ 418 $ 36 $ 415 $ 3,675 (in thousands) 2023 2022 2021 2020 2019 Prior Total Three months ended March 31, 2023 Residential 1-4 family $ — $ — $ — $ — $ — $ 809 $ 809 Commercial real estate — — — — — — — Home equity line of credit — — 43 — — 20 63 Residential land — — — — — — — Commercial construction — — — — — — — Residential construction — — — — — — — Commercial — — 51 — 8 168 227 Consumer 189 1,524 319 57 176 58 2,323 Total $ 189 $ 1,524 $ 413 $ 57 $ 184 $ 1,055 $ 3,422 |
Schedule of Credit Risk Profile Based on Payment Activity for Loans | The credit risk profile based on payment activity for loans was as follows: (in thousands) 30-59 60-89 90 days or more past due Total Current Total Amortized cost> March 31, 2024 Real estate: Residential 1-4 family $ 2,191 $ 773 $ 9,759 $ 12,723 $ 2,585,368 $ 2,598,091 $ 425 Commercial real estate — — 11,048 11,048 1,357,346 1,368,394 — Home equity line of credit 1,671 909 1,733 4,313 991,736 996,049 — Residential land — — 675 675 17,522 18,197 — Commercial construction — — — — 185,857 185,857 — Residential construction — — — — 17,756 17,756 — Commercial 72 — 139 211 704,427 704,638 — Consumer 2,827 1,984 1,458 6,269 250,004 256,273 — Total loans $ 6,761 $ 3,666 $ 24,812 $ 35,239 $ 6,110,016 $ 6,145,255 $ 425 December 31, 2023 Real estate: Residential 1-4 family $ 4,501 $ 5,165 $ 8,670 $ 18,336 $ 2,576,826 $ 2,595,162 $ 425 Commercial real estate — — 11,048 11,048 1,362,990 1,374,038 — Home equity line of credit 1,481 597 1,522 3,600 1,013,607 1,017,207 — Residential land — 675 — 675 17,689 18,364 — Commercial construction — — — — 172,405 172,405 — Residential construction — — — — 17,843 17,843 — Commercial 163 135 244 542 742,761 743,303 — Consumer 2,567 1,576 1,589 5,732 266,524 272,256 — Total loans $ 8,712 $ 8,148 $ 23,073 $ 39,933 $ 6,170,645 $ 6,210,578 $ 425 Credit risk profile based on payment activity for loans modified during the three months ended March 31, 2024 were as follows: (in thousands) Current 30-59 days past due 60-89 days past due 90 days or more past due Total Real estate loans Residential 1-4 family $ 266 $ — $ — $ 3,311 $ 3,577 Commercial real estate 1,975 — — — 1,975 Home equity line of credit 447 — — — 447 Residential land — — — 675 675 Commercial construction — — — — — Residential construction — — — — — Commercial — — — — — Consumer — — — — — Total $ 2,688 $ — $ — $ 3,986 $ 6,674 |
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) March 31, 2024 December 31, 2023 With a related ACL Without a related ACL Total With a related ACL Without a related ACL Total Real estate: Residential 1-4 family $ 8,758 $ 5,225 $ 13,983 $ 7,755 $ 2,190 $ 9,945 Commercial real estate 11,048 — 11,048 11,048 — 11,048 Home equity line of credit 2,404 1,538 3,942 2,626 1,135 3,761 Residential land 675 — 675 780 — 780 Commercial construction — — — — — — Residential construction — — — — — — Commercial 238 188 426 133 301 434 Consumer 2,516 — 2,516 2,458 — 2,458 Total $ 25,639 $ 6,951 $ 32,590 $ 24,800 $ 3,626 $ 28,426 |
Schedule of Loan Modification | Loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2024 were as follows: (in thousands) Term extension Payment delay Combination payment delay & term extension Total % of total class of loans Real estate loans Residential 1-4 family $ 266 $ 3,311 $ — $ 3,577 0.14 % Commercial real estate — — 1,975 1,975 0.14 % Home equity line of credit — 447 — 447 0.04 % Residential land — 675 — 675 3.71 % Commercial construction — — — — — Residential construction — — — — — Commercial — — — — — Consumer — — — — — Total $ 266 $ 4,433 $ 1,975 $ 6,674 0.11 % Financial effect of loan modifications during the three months ended March 31, 2024 for borrowers experiencing financial difficulty were as follows: Weighted average Term extension (in months) Payment delay (in months) Real estate loans Residential 1-4 family 156 9 Commercial real estate 9 9 Home equity line of credit — 9 Residential land — 9 Commercial construction — — Residential construction — — Commercial — — Consumer — — |
Schedule of Collateral-Dependent Loans | Loans considered collateral-dependent were as follows: Amortized cost (in thousands) March 31, 2024 December 31, 2023 Collateral type Real estate: Residential 1-4 family $ 5,731 $ 2,272 Residential real estate property Commercial real estate 11,048 11,048 Commercial real estate property Home equity line of credit 1,674 1,135 Residential real estate property Total real estate 18,453 14,455 Commercial 286 301 Business assets Total $ 18,739 $ 14,756 |
Schedule of Amortized Intangible Assets | Changes in the carrying value of MSRs were as follows: (in thousands) Gross Accumulated amortization Valuation allowance Net March 31, 2024 $ 17,939 $ (9,889) $ — $ 8,050 December 31, 2023 18,241 (10,072) — 8,169 Changes related to MSRs were as follows: Three months ended March 31 (in thousands) 2024 2023 Mortgage servicing rights Beginning balance $ 8,169 $ 9,047 Amount capitalized 198 51 Amortization (317) (353) Other-than-temporary impairment — — Carrying amount before valuation allowance 8,050 8,745 Valuation allowance for mortgage servicing rights Beginning balance — — Provision — — Other-than-temporary impairment — — Ending balance — — Net carrying value of mortgage servicing rights $ 8,050 $ 8,745 |
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) March 31, 2024 December 31, 2023 Unpaid principal balance $ 1,399,266 $ 1,402,736 Weighted average note rate 3.52 % 3.47 % Weighted average discount rate 10.00 % 10.00 % Weighted average prepayment speed 6.13 % 5.71 % |
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) March 31, 2024 December 31, 2023 Prepayment rate: 25 basis points adverse rate change $ (125) $ (90) 50 basis points adverse rate change (274) (204) Discount rate: 25 basis points adverse rate change (197) (203) 50 basis points adverse rate change (391) (402) |
Schedule of Notional and Fair Value of Derivatives | The notional amount and fair value of ASB’s derivative financial instruments were as follows: March 31, 2024 December 31, 2023 (in thousands) Notional amount Fair value Notional amount Fair value Interest rate lock commitments $ 8,938 $ 136 $ 6,246 $ 86 Forward commitments 6,900 (13) 5,500 (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 March 31, 2024 December 31, 2023 (in thousands) Asset derivatives Liability Asset derivatives Liability Interest rate lock commitments $ 136 $ — $ 86 $ — Forward commitments 1 14 — 18 $ 137 $ 14 $ 86 $ 18 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 March 31 (in thousands) 2024 2023 Interest rate lock commitments Mortgage banking income $ 50 $ 17 Forward commitments Mortgage banking income 5 (13) $ 55 $ 4 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 $ (282,963) $ 1,638 $ (8,025) $ (289,350) $ 2,849 Current period other comprehensive income (loss) (10,503) 692 10 (9,801) (49) Balance, March 31, 2024 $ (293,466) $ 2,330 $ (8,015) $ (299,151) $ 2,800 Balance, December 31, 2022 $ (328,904) $ 1,991 $ (9,115) $ (336,028) $ 2,861 Current period other comprehensive income (loss) 20,282 138 68 20,488 (45) Balance, March 31, 2023 $ (308,622) $ 2,129 $ (9,047) $ (315,540) $ 2,816 |
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 March 31 (in thousands) 2024 2023 HEI consolidated Amortization of unrealized holding losses on held-to-maturity securities $ 3,086 $ 3,677 Bank revenues Net realized gains on derivatives qualifying as cash flow hedges (48) (48) Interest expense Retirement benefit plans: Amortization of prior service credit and net gains recognized during the period in net periodic benefit cost (449) (357) See Note 9 for additional details Impact of D&Os of the PUC included in regulatory assets 459 425 See Note 9 for additional details Total reclassifications $ 3,048 $ 3,697 Hawaiian Electric consolidated Retirement benefit plans: Amortization of prior service credit and net gains recognized during the period in net periodic benefit cost $ (508) $ (470) See Note 9 for additional details Impact of D&Os of the PUC included in regulatory assets 459 425 See Note 9 for additional details Total reclassifications $ (49) $ (45) |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 (in thousands) Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 241,522 $ — $ — $ 241,522 Electric energy sales - commercial 241,768 — — 241,768 Electric energy sales - large light and power 271,087 — — 271,087 Electric energy sales - other 4,946 — — 4,946 Bank fees — 12,515 — 12,515 Other sales — — 3,306 3,306 Total revenues from contracts with customers 759,323 12,515 3,306 775,144 Revenues from other sources Regulatory revenue 21,190 — — 21,190 Bank interest and dividend income — 87,935 — 87,935 Other bank noninterest income — 4,694 — 4,694 Other 8,065 — 130 8,195 Total revenues from other sources 29,255 92,629 130 122,014 Total revenues $ 788,578 $ 105,144 $ 3,436 $ 897,158 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 12,515 $ — $ 12,515 Services/goods transferred over time 759,323 — 3,306 762,629 Total revenues from contracts with customers $ 759,323 $ 12,515 $ 3,306 $ 775,144 Three months ended March 31, 2023 (in thousands) Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 255,550 $ — $ — $ 255,550 Electric energy sales - commercial 254,470 — — 254,470 Electric energy sales - large light and power 290,978 — — 290,978 Electric energy sales - other 5,457 — — 5,457 Bank fees — 12,022 — 12,022 Other sales — — 3,907 3,907 Total revenues from contracts with customers 806,455 12,022 3,907 822,384 Revenues from other sources Regulatory revenue 15,604 — — 15,604 Bank interest and dividend income — 79,479 — 79,479 Other bank noninterest income — 2,356 — 2,356 Other 8,302 — 112 8,414 Total revenues from other sources 23,906 81,835 112 105,853 Total revenues $ 830,361 $ 93,857 $ 4,019 $ 928,237 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 12,022 $ — $ 12,022 Services/goods transferred over time 806,455 — 3,907 810,362 Total revenues from contracts with customers $ 806,455 $ 12,022 $ 3,907 $ 822,384 |
Retirement benefits (Tables)
Retirement benefits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31 Pension benefits Other benefits (in thousands) 2024 2023 2024 2023 HEI consolidated Service cost $ 11,264 $ 11,396 $ 281 $ 344 Interest cost 26,506 25,621 1,867 2,157 Expected return on plan assets (35,982) (35,195) (3,485) (3,405) Amortization of net prior period gain — — — (219) Amortization of net actuarial (gain)/losses 111 188 (713) (449) Net periodic pension/benefit cost (return) 1,899 2,010 (2,050) (1,572) Impact of PUC D&Os 18,090 18,133 1,888 1,425 Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) $ 19,989 $ 20,143 $ (162) $ (147) Hawaiian Electric consolidated Service cost $ 10,916 $ 11,019 $ 278 $ 340 Interest cost 24,627 23,698 1,779 2,063 Expected return on plan assets (33,777) (32,972) (3,434) (3,353) Amortization of net prior period gain — — — (218) Amortization of net actuarial (gain)/losses 12 19 (694) (434) Net periodic pension/benefit cost (return) 1,778 1,764 (2,071) (1,602) Impact of PUC D&Os 18,090 18,133 1,888 1,425 Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) $ 19,868 $ 19,897 $ (183) $ (177) |
Share-based compensation (Table
Share-based compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31 (in millions) 2024 2023 HEI consolidated Share-based compensation expense 1 $ 1.3 $ 2.0 Income tax benefit 0.1 0.3 Hawaiian Electric consolidated Share-based compensation expense 1 0.4 0.7 Income tax benefit — 0.1 1 For the three months ended March 31, 2024 and 2023, 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 March 31 (dollars in millions) 2024 2023 Shares granted — 1,509 Fair value $ — $ 0.1 Income tax benefit — — |
Schedule of Restricted Stock Units | Information about HEI’s grants of restricted stock units was as follows: Three months ended March 31 2024 2023 Shares (1) Shares (1) Outstanding, beginning of period 189,024 $ 41.23 182,528 $ 39.75 Granted — — 100,088 42.41 Vested (97,050) 40.39 (80,077) 39.30 Forfeited (1,071) 41.97 (406) 38.39 Outstanding, end of period 90,903 $ 42.11 202,133 $ 41.25 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ 4.2 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Schedule of Long-Term Incentive Plan (LTIP) Linked to Total Return to Shareholders | Information about HEI’s LTIP grants linked to TSR was as follows: Three months ended March 31 2024 2023 Shares (1) Shares (1) Outstanding, beginning of period 76,477 $ 50.11 71,574 $ 47.67 Granted 62,152 17.28 27,123 55.98 Vested (issued or unissued and cancelled) (28,577) 41.12 (18,691) 48.62 Forfeited (409) 55.63 — — Outstanding, end of period 109,643 $ 33.82 80,006 $ 50.27 Total weighted-average grant-date fair value of shares granted (in millions) $ 1.1 $ 1.5 (1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. |
Schedule of Long-Term Incentive Plan Assumptions | The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TSR and the resulting fair value of LTIP awards granted: 2024 2023 Risk-free interest rate 4.25 % 4.19 % Expected life in years 3 3 Expected volatility 52.5 % 33.1 % Range of expected volatility for Peer Group 12.3% to 52.5% 28.7% to 38.8% Grant-date fair value (per share) $17.28 $55.98 |
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 March 31 2024 2023 Shares (1) Shares (1) Outstanding, beginning of period 327,085 $ 39.44 309,589 $ 39.50 Granted 362,963 13.09 108,499 42.41 Vested (113,118) 34.93 (62,778) 48.07 Increase above target (cancelled) (546) 41.29 — — Forfeited (1,640) 42.04 — — Outstanding, end of period 574,744 $ 23.68 355,310 $ 38.87 Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) $ 4.8 $ 4.6 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Cash flows (Tables)
Cash flows (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Disclosures of Cash and Noncash Activity | Three months ended March 31 2024 2023 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates, net of amounts capitalized $ 62 $ 21 Income taxes paid (including refundable credits) 18 — Hawaiian Electric consolidated Interest paid to non-affiliates 14 6 Income taxes paid (including refundable credits) 21 3 Supplemental disclosures of noncash activities HEI consolidated Property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 6 1 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 30 50 Right-of-use assets obtained in exchange for finance lease obligations (financing) 13 40 Right-of-use assets obtained in exchange for operating lease obligations (investing) 1 1 Common stock issued (gross) for director and executive/management compensation (financing) 1 3 7 Obligations to fund low income housing investments (investing) — 7 Loans transferred from held for investment to held for sale (investing) 20 — Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 6 1 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 29 48 Right-of-use assets obtained in exchange for finance lease obligations (financing) 12 40 Common stock dividends payable (financing) 13 — 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) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 Financial assets HEI consolidated Available-for-sale investment securities $ 1,091,889 $ — $ 1,077,672 $ 14,217 $ 1,091,889 Held-to-maturity investment securities 1,191,074 — 1,074,735 — 1,074,735 Loans, net 6,048,588 — 2,922 5,606,328 5,609,250 Mortgage servicing rights 8,050 — — 18,430 18,430 Derivative assets 41,967 — 1,815 — 1,815 Financial liabilities HEI consolidated Deposit liabilities - time certificates 1,007,258 — 996,493 — 996,493 Other bank borrowings 593,000 — 591,244 — 591,244 Long-term debt, net—other than bank 2,837,875 — 2,145,625 — 2,145,625 Derivative liabilities 6,250 14 — — 14 Hawaiian Electric consolidated Long-term debt, net 1,932,959 — 1,392,483 — 1,392,483 December 31, 2023 Financial assets HEI consolidated Available-for-sale investment securities $ 1,136,439 $ — $ 1,122,081 $ 14,358 $ 1,136,439 Held-to-maturity investment securities 1,201,314 — 1,103,668 — 1,103,668 Loans, net 6,121,606 — 15,176 5,723,823 5,738,999 Mortgage servicing rights 8,169 — — 18,722 18,722 Derivative assets 16,880 — 1,058 — 1,058 Financial liabilities HEI consolidated Deposit liabilities - time certificates 1,063,907 — 1,053,101 — 1,053,101 Other bank borrowings 750,000 — 747,508 — 747,508 Long-term debt, net—other than bank 2,842,429 — 2,133,225 — 2,133,225 Derivative liabilities 28,449 18 303 — 321 Hawaiian Electric consolidated Long-term debt, net 1,934,277 — 1,385,025 — 1,385,025 |
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: March 31, 2024 December 31, 2023 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 $ — $ 1,035,134 $ — $ — $ 1,077,168 $ — U.S. Treasury and federal agency obligations — 9,637 — — 12,010 — Corporate bonds — 32,901 — — 32,903 — Mortgage revenue bonds — — 14,217 — — 14,358 $ — $ 1,077,672 $ 14,217 $ — $ 1,122,081 $ 14,358 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 136 $ — $ — $ 86 $ — Forward commitments (bank segment) 1 — 1 — — — — Interest rate swap (Other segment) 2 — 1,678 — — 972 — $ — $ 1,815 $ — $ — $ 1,058 $ — Derivative liabilities Forward commitments (bank segment) 1 $ 14 $ — $ — $ 18 $ — $ — Interest rate swap (Other segment) 2 — — — — 303 — $ 14 $ — $ — $ 18 $ 303 $ — 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 March 31 Mortgage revenue bonds 2024 2023 (in thousands) Beginning balance $ 14,358 $ 14,902 Principal payments received (141) (136) Purchases — — Unrealized gain (loss) included in other comprehensive income — — Ending balance $ 14,217 $ 14,766 |
Maui windstorm and wildfires -
Maui windstorm and wildfires - Narrative (Details) $ in Thousands | 3 Months Ended | ||||||||
May 09, 2024 claim plaintiff | May 04, 2024 USD ($) | Aug. 08, 2023 USD ($) | Mar. 31, 2024 USD ($) | May 08, 2024 claim registrationForm | May 03, 2024 claim | Mar. 22, 2024 claim | Dec. 31, 2023 USD ($) | Nov. 08, 2023 USD ($) | |
Public Utilities, General Disclosures [Line Items] | |||||||||
Regulatory assets | $ 315,067 | $ 294,804 | |||||||
Property insurance policy limit | $ 500,000 | ||||||||
Retention for property damages | $ 1,000 | ||||||||
Insurance Claims, Legal-Related Recoveries | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Insurance reimbursement receivable | 28,700 | ||||||||
Subsequent Event | Indemnification Agreement | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Amount agreed to contribute | $ 18,400 | ||||||||
Tort-Related Legal Claims | Subsequent Event | Maui Windstorm and Wildfires | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Lawsuit claim filed | claim | 400 | ||||||||
Maui Wildfire Negligence | Maui Windstorm and Wildfires | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Excess liability insurance | 165,000 | ||||||||
Excess liability insurance, retention amount | 300 | ||||||||
Directors and officers liability insurance | 145,000 | ||||||||
Directors and officers liability insurance, retention | 1,000 | ||||||||
Maui Wildfire Negligence | Maui Windstorm and Wildfires | Upcountry Maui | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Number of pending claims | claim | 6 | ||||||||
Maui Wildfire Negligence | Subsequent Event | Maui Windstorm and Wildfires | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Number of pending claims | claim | 1 | ||||||||
Maui Wildfire Negligence | Subsequent Event | Maui Windstorm and Wildfires | Lahaina | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Number of pending claims | claim | 4 | ||||||||
County Of Maui | Maui Wildfire Negligence | Subsequent Event | Maui Windstorm and Wildfires | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Lawsuit claim filed | claim | 1 | ||||||||
Subrogation Insurers | Maui Wildfire Negligence | Subsequent Event | Maui Windstorm and Wildfires | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Lawsuit claim filed | claim | 3 | ||||||||
Number of cases filed by subrogation insurers | plaintiff | 160 | ||||||||
HEI, The Utilities, And Other Defendants | Climate Change | Subsequent Event | Maui Windstorm and Wildfires | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Lawsuit claim filed | claim | 1 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Insurance Claims, Legal-Related Recoveries | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Insurance reimbursement receivable | 22,100 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Indemnification Agreement | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Other accrued expense | 6,700 | ||||||||
Natural Disasters and Other Casualty Events | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Expected funding amount | $ 175,000 | ||||||||
Expected beneficiary amount | $ 1,500 | ||||||||
Natural Disasters and Other Casualty Events | Subsequent Event | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Number of claim forms | claim | 12 | ||||||||
Number of registration forms | registrationForm | 43 | ||||||||
Number of physical injury related claim forms | claim | 2 | ||||||||
Number of physical injury related registration forms | registrationForm | 15 | ||||||||
Natural Disasters and Other Casualty Events | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Regulatory assets | 22,600 | ||||||||
Committed contribution to humanitarian fund | 75,000 | ||||||||
Natural Disasters and Other Casualty Events | Hawaiian Electric Company, Inc. and Subsidiaries | Maui Windstorm and Wildfires | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Incremental expenses | $ 5,600 |
Maui windstorm and wildfires _2
Maui windstorm and wildfires - Utilities Charged (Details) - Natural Disasters and Other Casualty Events - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Maui Windstorm and Wildfires | ||
Public Utilities, General Disclosures [Line Items] | ||
Total Maui windstorm and wildfires related expenses | $ 30,118 | $ 138,383 |
Insurance recovery | (12,577) | (104,580) |
Deferral treatment approved by the PUC | (7,898) | (14,692) |
Total Maui windstorm and wildfires related expenses, net of insurance recoveries and approved deferral treatment | 9,643 | 19,111 |
Legal expenses | ||
Public Utilities, General Disclosures [Line Items] | ||
Total Maui windstorm and wildfires related expenses | 15,027 | 34,876 |
Loss From Catastrophes, One 'Ohana Initiative Contribution | ||
Public Utilities, General Disclosures [Line Items] | ||
Total Maui windstorm and wildfires related expenses | 0 | 75,000 |
Other expense | ||
Public Utilities, General Disclosures [Line Items] | ||
Total Maui windstorm and wildfires related expenses | 15,091 | 28,507 |
Hawaiian Electric Company, Inc. and Subsidiaries | Maui Windstorm and Wildfires | ||
Public Utilities, General Disclosures [Line Items] | ||
Total Maui windstorm and wildfires related expenses | 24,567 | 114,808 |
Insurance recovery | (9,969) | (98,613) |
Deferral treatment approved by the PUC | (7,898) | (14,692) |
Total Maui windstorm and wildfires related expenses, net of insurance recoveries and approved deferral treatment | 6,700 | 1,503 |
Hawaiian Electric Company, Inc. and Subsidiaries | Legal expenses | ||
Public Utilities, General Disclosures [Line Items] | ||
Total Maui windstorm and wildfires related expenses | 10,735 | 24,737 |
Hawaiian Electric Company, Inc. and Subsidiaries | Loss From Catastrophes, One 'Ohana Initiative Contribution | ||
Public Utilities, General Disclosures [Line Items] | ||
Total Maui windstorm and wildfires related expenses | 0 | 75,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Other expense | ||
Public Utilities, General Disclosures [Line Items] | ||
Total Maui windstorm and wildfires related expenses | $ 13,832 | $ 15,071 |
Segment financial information -
Segment financial information - Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment financial information | |||
Revenues | $ 897,158 | $ 928,237 | |
Income (loss) before income taxes | 54,269 | 70,304 | |
Income taxes (benefit) | 11,674 | 15,110 | |
Net income (loss) | 42,595 | 55,194 | |
Preferred stock dividends of Hawaiian Electric | 473 | 473 | |
Net income for common stock | 42,122 | 54,721 | |
Total assets | 16,923,208 | $ 17,243,821 | |
Electric utility | |||
Segment financial information | |||
Revenues | 788,578 | 830,361 | |
Income (loss) before income taxes | 50,900 | 61,108 | |
Income taxes (benefit) | 11,180 | 13,600 | |
Net income (loss) | 39,720 | 47,508 | |
Preferred stock dividends of Hawaiian Electric | 499 | 499 | |
Net income for common stock | 39,221 | 47,009 | |
Total assets | 7,274,862 | 7,283,554 | |
Bank | |||
Segment financial information | |||
Revenues | 105,144 | 93,857 | |
Income (loss) before income taxes | 25,813 | 23,707 | |
Income taxes (benefit) | 4,879 | 5,145 | |
Net income (loss) | 20,934 | 18,562 | |
Preferred stock dividends of Hawaiian Electric | 0 | 0 | |
Net income for common stock | 20,934 | 18,562 | |
Total assets | 9,360,229 | 9,673,192 | |
Other | |||
Segment financial information | |||
Revenues | 3,436 | 4,019 | |
Income (loss) before income taxes | (22,444) | (14,511) | |
Income taxes (benefit) | (4,385) | (3,635) | |
Net income (loss) | (18,059) | (10,876) | |
Preferred stock dividends of Hawaiian Electric | (26) | (26) | |
Net income for common stock | (18,033) | $ (10,850) | |
Total assets | $ 288,117 | $ 287,075 |
Electric utility segment - Unco
Electric utility segment - Unconsolidated Variable Interest Entities (Details) | 3 Months Ended |
Mar. 31, 2024 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 - Comm
Electric utility segment - Commitments and contingencies (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Mar. 28, 2024 USD ($) MW | Apr. 30, 2024 USD ($) | Feb. 28, 2023 | Jul. 31, 2018 MW | May 31, 2012 MW | Mar. 31, 2024 USD ($) agreement MW | Dec. 31, 2022 USD ($) | Dec. 31, 2019 agreement | Dec. 31, 2023 USD ($) | |
Long-term Purchase Commitment [Line Items] | |||||||||
Operating lease right-of-use assets | $ 91,182 | $ 94,905 | |||||||
Environmental loss contingency, statement of financial position, not disclosed | reserve account balance | ||||||||
Purchase obligation | 1,700,000 | ||||||||
Maui Electric | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Additional accrued investigation and estimated cleanup costs | $ 2,500 | ||||||||
Hawaiian Electric, Parent | PCB Contamination | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Valuation allowances and reserves | 9,600 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Operating lease right-of-use assets | 68,217 | $ 71,877 | |||||||
Notice period, pre-cursor to citizen's suit | 60 days | ||||||||
Number of power purchase agreements (PPAs) (in agreements) | agreement | 7 | ||||||||
Hu Honua Bioenergy, LLC | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Minimum power volume required (in megawatts) | MW | 21.5 | ||||||||
Molokai New Energy Partners | |||||||||
Long-term Purchase Commitment [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 | ||||||||
James Campbell Company | Hawaiian Electric, Parent | Kapolei Petroleum Contamination | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Environmental remediation expense | $ 800 | ||||||||
James Campbell Company | Hawaiian Electric, Parent | Kapolei Petroleum Contamination | Subsequent Event | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Environmental remediation expense | $ 1,400 | ||||||||
AES Hawaii | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Minimum power volume required (in megawatts) | MW | 12.5 | ||||||||
Total contracted PV capacity (in megawatts) | MW | 50 | ||||||||
Annual payment | $ 3,200 | ||||||||
Operating lease right-of-use assets | $ 12,200 | ||||||||
Stage 1 And 2 Renewable PPAs | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Minimum power volume required (in megawatts) | MW | 117.5 | ||||||||
Total contracted PV capacity (in megawatts) | MW | 1,035 | ||||||||
Number of power purchase agreements (PPAs) (in agreements) | agreement | 5 |
Electric utility segment - Purc
Electric utility segment - Purchases from IPPs (Details) - Hawaiian Electric, Parent - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Regulatory Projects and Legal Obligations [Line Items] | ||
Purchased power | $ 160 | $ 153 |
Kalaeloa | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Purchased power | 66 | 67 |
HPOWER | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Purchased power | 17 | 18 |
Puna Geothermal Venture | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Purchased power | 13 | 8 |
Hamakua Energy | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Purchased power | 11 | 20 |
Kapolei Energy Storage | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Purchased power | 6 | 0 |
Wind IPPs | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Purchased power | 30 | 24 |
Solar IPPs | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Purchased power | 15 | 14 |
Other IPPs | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Purchased power | $ 2 | |
Other Independent Power Producers, Including Netting | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Purchased power | $ 2 |
Electric utility segment - Util
Electric utility segment - Utility Projects (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |||||
Jan. 31, 2024 USD ($) | Sep. 30, 2020 MW | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Aug. 29, 2023 USD ($) | Nov. 30, 2021 USD ($) | Oct. 31, 2020 transmission_line generationUnit kV | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Public utilities, project cost recovery cap | $ 95 | ||||||
Project costs incurred | $ 1.5 | ||||||
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 | 25.3 | ||||||
Waena Battery Energy Storage System Project | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Total contracted battery energy storage system capacity | MW | 40 | ||||||
Waena Battery Energy Storage System Project | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Renewable energy generation project, approved funds | $ 82.1 | ||||||
Renewable energy generation project, incurred cost | $ 0.6 | ||||||
Climate Adaptation Transmission And Distribution Resilience Program | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Public utilities, electric grid project, approved funds | $ 189.7 | ||||||
Project period | 5 years |
Electric utility segment - Regu
Electric utility segment - Regulatory Proceedings (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2023 USD ($) | Dec. 23, 2020 USD ($) | Mar. 31, 2024 USD ($) MWh project agreement | Dec. 31, 2023 USD ($) | Dec. 31, 2019 USD ($) agreement | Mar. 11, 2024 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 17, 2022 mechanism | 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 | ||||||||||
Performance incentive mechanism, accrued award | $ 10 | ||||||||||
Potential total annual maximum reward | $ 2,000 | ||||||||||
Advanced metering infrastructure term (in years) | 3 years | ||||||||||
Regulatory assets | $ 315,067 | $ 294,804 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Number of performance incentive mechanisms | mechanism | 2 | ||||||||||
Multi-year rate period (in years) | 5 years | ||||||||||
Customer dividend, negative adjustment percentage | 0.22% | ||||||||||
Savings commitment liability, annual rate | $ 6,600 | ||||||||||
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 | 0.50 | ||||||||||
Earnings sharing mechanism, actual earning, above or below dead band | 1.50% | ||||||||||
Percentage sharing for any further difference | 0.90 | ||||||||||
MPIR and EPRM requested amount | $ 33,100 | ||||||||||
EPRM approved projects | project | 4 | ||||||||||
EPRM approved projects, capital costs | $ 218,500 | ||||||||||
Number of projects | project | 3 | ||||||||||
Estimated capital costs | $ 215,900 | ||||||||||
2022 deferred cost recovery approved | $ 3,000 | ||||||||||
Decoupling order, service reliability performance, historical measurement period (in years) | 10 years | ||||||||||
Maximum penalty, percent of ROE | 0.20% | ||||||||||
Service reliability, pending adjusted maximum penalty amount | $ 6,400 | ||||||||||
Service reliability, estimated penalties | 3,700 | ||||||||||
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 | 7 | ||||||||||
Number of incentive earned power purchase agreements | agreement | 2 | ||||||||||
Incentives accrued | $ 100 | $ 1,700 | $ 100 | ||||||||
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 | ||||||||||
Accrued estimated rewards | 400 | ||||||||||
Potential total annual maximum reward | $ 1,500 | ||||||||||
Public utilities, grid services procurement performance incentive mechanism, accrued estimated rewards | 1,100 | ||||||||||
Potential total annual maximum reward | 3,000 | ||||||||||
Total annual maximum penalty | 900 | ||||||||||
Interconnection approval PIM, accrued estimated rewards | 3,000 | ||||||||||
Performance incentive mechanism, maximum reward | $ 2,000 | ||||||||||
Performance incentive mechanism, term (in years) | 3 years | ||||||||||
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 | 900 | ||||||||||
Recovery of deferral costs period (in years) | 3 years | ||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Honolulu Generating Units 8 and 9 | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Regulatory asset amortization period | 9 years | ||||||||||
Regulatory assets | $ 29,100 | ||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Suspension Of Disconnections | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Regulatory assets | 1,000 | ||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Natural Disasters and Other Casualty Events | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Regulatory assets | 22,600 | ||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | COVID-19 | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Public utilities in regulatory assets | $ 8,800 | ||||||||||
Regulatory assets | $ 8,600 | ||||||||||
Hawaiian Electric, Parent | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Public utilities retained percentage | 20% | ||||||||||
Accrued earned rewards, net of penalties | 1,200 | ||||||||||
Hawaii Electric Light Company, Inc | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Accrued earned rewards, net of penalties | (600) | ||||||||||
Maui Electric | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Accrued earned rewards, net of penalties | $ 300 | ||||||||||
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 | ||||||||||
Regulatory liability for O&M expense reductions | $ 12,900 | ||||||||||
ERP/EAM Implementation Project | Hawaiian Electric, Parent | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Regulatory liability for O&M expense reductions | 2,200 | ||||||||||
ERP/EAM Implementation Project | Hawaii Electric Light Company, Inc | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Regulatory liability for O&M expense reductions | 4,300 | ||||||||||
ERP/EAM Implementation Project | Maui Electric | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
Regulatory liability for O&M expense reductions | 6,400 | ||||||||||
Waena Switchyard/Synchronous Project | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Regulatory Projects and Legal Obligations [Line Items] | |||||||||||
EPRM requested amount | $ 2,000 |
Electric utility segment - Annu
Electric utility segment - Annual Decoupling Filings Summary (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2024 | Mar. 31, 2024 | |
Regulatory Projects and Legal Obligations [Line Items] | ||
Recovery of COVID-19 related costs | $ 3.2 | |
Return of ERP benefit liability | (3.2) | |
Net 2024 ARA revenues | 0 | |
Incremental RAM revenues and ARA revenues | $ 0 | |
Incremental PIMs (net) | (2.6) | |
Incremental MPIR/EPRM revenue adjustment | 4.9 | |
Incremental Pilot Process cost recovery | 2.7 | |
Net incremental amount to be collected under the RBA rate tariffs | 5 | |
Hawaiian Electric, Parent | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Recovery of COVID-19 related costs | 2.2 | |
Return of ERP benefit liability | 0 | |
Net 2024 ARA revenues | 2.2 | |
Incremental RAM revenues and ARA revenues | 2.2 | |
Incremental PIMs (net) | (1.3) | |
Incremental MPIR/EPRM revenue adjustment | 3 | |
Incremental Pilot Process cost recovery | 1.9 | |
Net incremental amount to be collected under the RBA rate tariffs | 5.8 | |
Hawaii Electric Light | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Recovery of COVID-19 related costs | 0.5 | |
Return of ERP benefit liability | (1.3) | |
Net 2024 ARA revenues | (0.8) | |
Incremental RAM revenues and ARA revenues | (0.8) | |
Incremental PIMs (net) | (1.1) | |
Incremental MPIR/EPRM revenue adjustment | 0.7 | |
Incremental Pilot Process cost recovery | 0.3 | |
Net incremental amount to be collected under the RBA rate tariffs | (0.9) | |
Maui Electric | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
Recovery of COVID-19 related costs | 0.5 | |
Return of ERP benefit liability | (1.9) | |
Net 2024 ARA revenues | $ (1.4) | |
Incremental RAM revenues and ARA revenues | (1.4) | |
Incremental PIMs (net) | (0.2) | |
Incremental MPIR/EPRM revenue adjustment | 1.2 | |
Incremental Pilot Process cost recovery | 0.5 | |
Net incremental amount to be collected under the RBA rate tariffs | $ 0.1 |
Electric utility segment - Cond
Electric utility segment - Condensed Consolidating Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Condensed Income Statements, Captions [Line Items] | ||
Revenues | $ 897,158 | $ 928,237 |
Expenses | ||
Total expenses | 820,739 | 834,719 |
Operating income | 76,419 | 93,518 |
Allowance for equity funds used during construction | 3,640 | 3,301 |
Retirement defined benefits credit (expense)—other than service costs | 1,282 | 1,152 |
Allowance for borrowed funds used during construction | 1,386 | 1,131 |
Interest income | 3,133 | 0 |
Income before income taxes | 54,269 | 70,304 |
Income taxes | 11,674 | 15,110 |
Net income (loss) | 42,595 | 55,194 |
Preferred stock dividends of Hawaiian Electric | 473 | 473 |
Net income for common stock | 42,122 | 54,721 |
Hawaiian Electric Consolidated | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 788,578 | 830,361 |
Expenses | ||
Fuel oil | 284,296 | 334,097 |
Purchased power | 159,817 | 152,761 |
Other operation and maintenance | 143,890 | 128,316 |
Depreciation | 62,812 | 60,927 |
Taxes, other than income taxes | 74,408 | 78,385 |
Total expenses | 725,223 | 754,486 |
Operating income | 63,355 | 75,875 |
Allowance for equity funds used during construction | 3,640 | 3,301 |
Equity in earnings of subsidiaries | 0 | 0 |
Retirement defined benefits credit (expense)—other than service costs | 1,072 | 1,047 |
Interest expense and other charges, net | (19,985) | (20,246) |
Allowance for borrowed funds used during construction | 1,386 | 1,131 |
Interest income | 1,432 | 0 |
Income before income taxes | 50,900 | 61,108 |
Income taxes | 11,180 | 13,600 |
Net income | 39,720 | 47,508 |
Preferred stock dividends of subsidiaries | 229 | 229 |
Net income (loss) | 39,491 | 47,279 |
Preferred stock dividends of Hawaiian Electric | 270 | 270 |
Net income for common stock | 39,221 | 47,009 |
Reportable Legal Entities | Hawaiian Electric Consolidated | ||
Expenses | ||
Interest income | 1,432 | |
Consolidating adjustments | Hawaiian Electric Consolidated | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 0 | (130) |
Expenses | ||
Fuel oil | 0 | 0 |
Purchased power | 0 | 0 |
Other operation and maintenance | 0 | 0 |
Depreciation | 0 | 0 |
Taxes, other than income taxes | 0 | 0 |
Total expenses | 0 | 0 |
Operating income | 0 | (130) |
Allowance for equity funds used during construction | 0 | 0 |
Equity in earnings of subsidiaries | (6,024) | (11,541) |
Retirement defined benefits credit (expense)—other than service costs | 0 | 0 |
Interest expense and other charges, net | 1,452 | 130 |
Allowance for borrowed funds used during construction | 0 | 0 |
Interest income | (1,452) | |
Income before income taxes | (6,024) | (11,541) |
Income taxes | 0 | 0 |
Net income | (6,024) | (11,541) |
Preferred stock dividends of subsidiaries | 0 | 0 |
Net income (loss) | (6,024) | (11,541) |
Preferred stock dividends of Hawaiian Electric | 0 | 0 |
Net income for common stock | (6,024) | (11,541) |
Hawaiian Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 564,180 | 601,530 |
Expenses | ||
Fuel oil | 210,199 | 253,827 |
Purchased power | 117,518 | 110,279 |
Other operation and maintenance | 90,884 | 83,233 |
Depreciation | 42,004 | 41,038 |
Taxes, other than income taxes | 53,409 | 56,953 |
Total expenses | 514,014 | 545,330 |
Operating income | 50,166 | 56,200 |
Allowance for equity funds used during construction | 2,821 | 2,640 |
Equity in earnings of subsidiaries | 6,024 | 11,541 |
Retirement defined benefits credit (expense)—other than service costs | 927 | 904 |
Interest expense and other charges, net | (14,292) | (14,557) |
Allowance for borrowed funds used during construction | 1,079 | 918 |
Interest income | 2,663 | |
Income before income taxes | 49,388 | 57,646 |
Income taxes | 9,897 | 10,367 |
Net income | 39,491 | 47,279 |
Preferred stock dividends of subsidiaries | 0 | 0 |
Net income (loss) | 39,491 | 47,279 |
Preferred stock dividends of Hawaiian Electric | 270 | 270 |
Net income for common stock | 39,221 | 47,009 |
Hawaii Electric Light | Reportable Legal Entities | Hawaiian Electric Consolidated | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 117,609 | 115,288 |
Expenses | ||
Fuel oil | 31,185 | 27,760 |
Purchased power | 32,056 | 34,086 |
Other operation and maintenance | 24,590 | 21,350 |
Depreciation | 10,964 | 10,635 |
Taxes, other than income taxes | 10,957 | 10,737 |
Total expenses | 109,752 | 104,568 |
Operating income | 7,857 | 10,720 |
Allowance for equity funds used during construction | 349 | 284 |
Equity in earnings of subsidiaries | 0 | 0 |
Retirement defined benefits credit (expense)—other than service costs | 168 | 169 |
Interest expense and other charges, net | (2,914) | (2,831) |
Allowance for borrowed funds used during construction | 107 | 91 |
Interest income | 155 | |
Income before income taxes | 5,722 | 8,433 |
Income taxes | 1,198 | 1,909 |
Net income | 4,524 | 6,524 |
Preferred stock dividends of subsidiaries | 134 | 134 |
Net income (loss) | 4,390 | 6,390 |
Preferred stock dividends of Hawaiian Electric | 0 | 0 |
Net income for common stock | 4,390 | 6,390 |
Maui Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 106,789 | 113,673 |
Expenses | ||
Fuel oil | 42,912 | 52,510 |
Purchased power | 10,243 | 8,396 |
Other operation and maintenance | 28,416 | 23,733 |
Depreciation | 9,844 | 9,254 |
Taxes, other than income taxes | 10,042 | 10,695 |
Total expenses | 101,457 | 104,588 |
Operating income | 5,332 | 9,085 |
Allowance for equity funds used during construction | 470 | 377 |
Equity in earnings of subsidiaries | 0 | 0 |
Retirement defined benefits credit (expense)—other than service costs | (23) | (26) |
Interest expense and other charges, net | (4,231) | (2,988) |
Allowance for borrowed funds used during construction | 200 | 122 |
Interest income | 66 | |
Income before income taxes | 1,814 | 6,570 |
Income taxes | 85 | 1,324 |
Net income | 1,729 | 5,246 |
Preferred stock dividends of subsidiaries | 95 | 95 |
Net income (loss) | 1,634 | 5,151 |
Preferred stock dividends of Hawaiian Electric | 0 | 0 |
Net income for common stock | 1,634 | 5,151 |
Other subsidiaries | Reportable Legal Entities | Hawaiian Electric Consolidated | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 0 | 0 |
Expenses | ||
Fuel oil | 0 | 0 |
Purchased power | 0 | 0 |
Other operation and maintenance | 0 | 0 |
Depreciation | 0 | 0 |
Taxes, other than income taxes | 0 | 0 |
Total expenses | 0 | 0 |
Operating income | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 |
Equity in earnings of subsidiaries | 0 | 0 |
Retirement defined benefits credit (expense)—other than service costs | 0 | 0 |
Interest expense and other charges, net | 0 | 0 |
Allowance for borrowed funds used during construction | 0 | 0 |
Income before income taxes | 0 | 0 |
Income taxes | 0 | 0 |
Net income | 0 | 0 |
Preferred stock dividends of subsidiaries | 0 | 0 |
Net income (loss) | 0 | 0 |
Preferred stock dividends of Hawaiian Electric | 0 | 0 |
Net income for common stock | 0 | $ 0 |
Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||
Expenses | ||
Interest income | $ 0 |
Electric utility segment - Co_2
Electric utility segment - Condensed Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Condensed Statement of Income Captions [Line Items] | ||
Net income for common stock | $ 42,122 | $ 54,721 |
Retirement benefit plans: | ||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 459 | 425 |
Other comprehensive loss, net of taxes | (9,801) | 20,488 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 32,321 | 75,209 |
Hawaiian Electric Consolidated | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income for common stock | 39,221 | 47,009 |
Retirement benefit plans: | ||
Adjustment for amortization of net gains recognized during the period in net periodic benefit cost, net of taxes | (508) | (470) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 459 | 425 |
Other comprehensive loss, net of taxes | (49) | (45) |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 39,172 | 46,964 |
Consolidating adjustments | Hawaiian Electric Consolidated | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income for common stock | (6,024) | (11,541) |
Retirement benefit plans: | ||
Adjustment for amortization of net gains recognized during the period in net periodic benefit cost, net of taxes | 97 | 119 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (84) | (107) |
Other comprehensive loss, net of taxes | 13 | 12 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | (6,011) | (11,529) |
Hawaiian Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income for common stock | 39,221 | 47,009 |
Retirement benefit plans: | ||
Adjustment for amortization of net gains recognized during the period in net periodic benefit cost, net of taxes | (508) | (470) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 459 | 425 |
Other comprehensive loss, net of taxes | (49) | (45) |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 39,172 | 46,964 |
Hawaii Electric Light | Reportable Legal Entities | Hawaiian Electric Consolidated | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income for common stock | 4,390 | 6,390 |
Retirement benefit plans: | ||
Adjustment for amortization of net gains recognized during the period in net periodic benefit cost, net of taxes | (38) | (56) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 35 | 50 |
Other comprehensive loss, net of taxes | (3) | (6) |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 4,387 | 6,384 |
Maui Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income for common stock | 1,634 | 5,151 |
Retirement benefit plans: | ||
Adjustment for amortization of net gains recognized during the period in net periodic benefit cost, net of taxes | (59) | (63) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 49 | 57 |
Other comprehensive loss, net of taxes | (10) | (6) |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 1,624 | 5,145 |
Other subsidiaries | Reportable Legal Entities | Hawaiian Electric Consolidated | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income for common stock | 0 | 0 |
Retirement benefit plans: | ||
Adjustment for amortization of net gains recognized during the period in net periodic benefit cost, net of taxes | 0 | 0 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 0 | 0 |
Other comprehensive loss, net of taxes | 0 | 0 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ 0 | $ 0 |
Electric utility segment - Co_3
Electric utility segment - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Utility property, plant and equipment | ||||
Total property, plant and equipment, net | $ 6,183,503 | $ 6,150,126 | ||
Current assets | ||||
Cash and cash equivalents | 485,192 | 679,546 | $ 315,334 | |
Restricted cash | 17,531 | 15,028 | 4,216 | |
Other long-term assets | ||||
Operating lease right-of-use assets | 91,182 | 94,905 | ||
Total assets | 16,923,208 | 17,243,821 | ||
Capitalization | ||||
Common stock equity | 2,377,380 | 2,344,841 | 2,237,955 | $ 2,202,499 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 | ||
Current liabilities | ||||
Interest and dividends payable | 61,452 | 51,206 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 299,012 | 297,954 | ||
Total liabilities and shareholders’ equity | 16,923,208 | 17,243,821 | ||
Hawaiian Electric Consolidated | ||||
Utility property, plant and equipment | ||||
Land | 52,019 | 52,098 | ||
Plant and equipment | 8,302,449 | 8,232,810 | ||
Financing lease right-of-use assets | 354,401 | 342,174 | ||
Less accumulated depreciation | (3,249,089) | (3,197,514) | ||
Construction in progress | 330,743 | 320,223 | ||
Utility property, plant and equipment, net | 5,790,523 | 5,749,791 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 6,941 | 6,942 | ||
Total property, plant and equipment, net | 5,797,464 | 5,756,733 | ||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 129,754 | 106,077 | 116,022 | |
Restricted cash | 2,000 | 2,000 | 0 | |
Advances to affiliates | 0 | 0 | ||
Customer accounts receivable, net | 209,999 | 244,309 | ||
Accrued unbilled revenues, net | 171,455 | 185,644 | ||
Other accounts receivable, net | 38,025 | 111,519 | ||
Fuel oil stock, at average cost | 161,433 | 148,237 | ||
Materials and supplies, at average cost | 115,719 | 114,433 | ||
Prepayments and other | 72,025 | 58,491 | ||
Regulatory assets | 82,503 | 68,453 | ||
Total current assets | 982,913 | 1,039,163 | ||
Other long-term assets | ||||
Operating lease right-of-use assets | 68,217 | 71,877 | ||
Regulatory assets | 232,564 | 226,351 | ||
Other | 193,704 | 189,430 | ||
Total other long-term assets | 494,485 | 487,658 | ||
Total assets | 7,274,862 | 7,283,554 | ||
Capitalization | ||||
Common stock equity | 2,435,282 | 2,409,110 | 2,358,884 | 2,344,170 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 | ||
Long-term debt, net | 1,886,028 | 1,934,277 | ||
Total capitalization | 4,355,603 | 4,377,680 | ||
Current liabilities | ||||
Current portion of operating lease liabilities | 16,234 | 16,617 | ||
Current portion of long-term debt | 46,931 | 0 | ||
Accounts payable | 198,636 | 191,040 | ||
Interest and dividends payable | 43,926 | 22,882 | ||
Taxes accrued, including revenue taxes | 282,446 | 291,942 | ||
Regulatory liabilities | 26,149 | 36,559 | ||
Other | 108,006 | 171,436 | ||
Total current liabilities | 722,328 | 730,476 | ||
Deferred credits and other liabilities | ||||
Operating lease liabilities | 58,399 | 62,098 | ||
Finance lease liabilities | 341,141 | 330,978 | ||
Deferred income taxes | 403,761 | 399,001 | ||
Regulatory liabilities | 1,133,662 | 1,114,131 | ||
Unamortized tax credits | 81,771 | 84,312 | ||
Defined benefit pension and other postretirement benefit plans liability | 62,331 | 60,671 | ||
Other | 115,866 | 124,207 | ||
Total deferred credits and other liabilities | 2,196,931 | 2,175,398 | ||
Total liabilities and shareholders’ equity | 7,274,862 | 7,283,554 | ||
Hawaiian Electric Consolidated | Affiliated Entity | ||||
Current liabilities | ||||
Short-term borrowings from non-affiliates | 0 | 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 | (728,222) | (722,211) | ||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | |
Restricted cash | 0 | 0 | ||
Advances to affiliates | (93,000) | (70,500) | ||
Customer accounts receivable, net | 0 | 0 | ||
Accrued unbilled revenues, net | 0 | 0 | ||
Other accounts receivable, net | (38,307) | (77,480) | ||
Fuel oil stock, at average cost | 0 | 0 | ||
Materials and supplies, at average cost | 0 | 0 | ||
Prepayments and other | (1,434) | (1,638) | ||
Regulatory assets | 0 | 0 | ||
Total current assets | (132,741) | (149,618) | ||
Other long-term assets | ||||
Operating lease right-of-use assets | 0 | 0 | ||
Regulatory assets | 0 | 0 | ||
Other | (14,484) | (14,171) | ||
Total other long-term assets | (14,484) | (14,171) | ||
Total assets | (875,447) | (886,000) | ||
Capitalization | ||||
Common stock equity | (728,222) | (722,211) | (705,212) | (701,833) |
Preferred stock of subsidiaries - not subject to mandatory redemption | 0 | 0 | ||
Long-term debt, net | 0 | 0 | ||
Total capitalization | (728,222) | (722,211) | ||
Current liabilities | ||||
Current portion of operating lease liabilities | 0 | 0 | ||
Current portion of long-term debt | 0 | |||
Accounts payable | 0 | 0 | ||
Interest and dividends payable | (547) | (375) | ||
Taxes accrued, including revenue taxes | (1,434) | (1,638) | ||
Regulatory liabilities | 0 | 0 | ||
Other | (37,760) | (77,105) | ||
Total current liabilities | (132,741) | (149,618) | ||
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 and other postretirement benefit plans liability | (14,484) | (14,171) | ||
Other | 0 | 0 | ||
Total deferred credits and other liabilities | (14,484) | (14,171) | ||
Total liabilities and shareholders’ equity | (875,447) | (886,000) | ||
Consolidating adjustments | Hawaiian Electric Consolidated | Affiliated Entity | ||||
Current liabilities | ||||
Short-term borrowings from non-affiliates | (93,000) | (70,500) | ||
Hawaiian Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||
Utility property, plant and equipment | ||||
Land | 42,860 | 42,859 | ||
Plant and equipment | 5,442,481 | 5,398,281 | ||
Financing lease right-of-use assets | 318,326 | 306,099 | ||
Less accumulated depreciation | (1,962,980) | (1,925,660) | ||
Construction in progress | 249,111 | 247,836 | ||
Utility property, plant and equipment, net | 4,089,798 | 4,069,415 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 5,294 | 5,295 | ||
Total property, plant and equipment, net | 4,095,092 | 4,074,710 | ||
Investment in wholly owned subsidiaries, at equity | 728,222 | 722,211 | ||
Current assets | ||||
Cash and cash equivalents | 111,200 | 89,755 | 49,393 | |
Restricted cash | 2,000 | 2,000 | ||
Advances to affiliates | 93,000 | 70,500 | ||
Customer accounts receivable, net | 148,241 | 172,747 | ||
Accrued unbilled revenues, net | 124,691 | 136,367 | ||
Other accounts receivable, net | 47,107 | 143,160 | ||
Fuel oil stock, at average cost | 121,468 | 108,228 | ||
Materials and supplies, at average cost | 65,457 | 64,334 | ||
Prepayments and other | 52,174 | 40,767 | ||
Regulatory assets | 69,284 | 58,920 | ||
Total current assets | 834,622 | 886,778 | ||
Other long-term assets | ||||
Operating lease right-of-use assets | 33,628 | 34,856 | ||
Regulatory assets | 194,038 | 189,417 | ||
Other | 138,076 | 134,033 | ||
Total other long-term assets | 365,742 | 358,306 | ||
Total assets | 6,023,678 | 6,042,005 | ||
Capitalization | ||||
Common stock equity | 2,435,282 | 2,409,110 | 2,358,884 | 2,344,170 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 22,293 | 22,293 | ||
Long-term debt, net | 1,385,625 | 1,426,516 | ||
Total capitalization | 3,843,200 | 3,857,919 | ||
Current liabilities | ||||
Current portion of operating lease liabilities | 6,298 | 6,788 | ||
Current portion of long-term debt | 39,941 | |||
Accounts payable | 139,015 | 136,102 | ||
Interest and dividends payable | 35,795 | 17,085 | ||
Taxes accrued, including revenue taxes | 219,385 | 211,840 | ||
Regulatory liabilities | 11,488 | 20,013 | ||
Other | 81,609 | 165,131 | ||
Total current liabilities | 533,531 | 556,959 | ||
Deferred credits and other liabilities | ||||
Operating lease liabilities | 33,090 | 34,262 | ||
Finance lease liabilities | 306,262 | 295,935 | ||
Deferred income taxes | 283,734 | 280,029 | ||
Regulatory liabilities | 817,663 | 803,404 | ||
Unamortized tax credits | 59,188 | 61,130 | ||
Defined benefit pension and other postretirement benefit plans liability | 76,815 | 74,842 | ||
Other | 70,195 | 77,525 | ||
Total deferred credits and other liabilities | 1,646,947 | 1,627,127 | ||
Total liabilities and shareholders’ equity | 6,023,678 | 6,042,005 | ||
Hawaiian Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | Affiliated Entity | ||||
Current liabilities | ||||
Short-term borrowings from non-affiliates | 0 | 0 | ||
Hawaii Electric Light | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||
Utility property, plant and equipment | ||||
Land | 5,645 | 5,645 | ||
Plant and equipment | 1,470,238 | 1,459,639 | ||
Financing lease right-of-use assets | 36,075 | 36,075 | ||
Less accumulated depreciation | (673,926) | (666,581) | ||
Construction in progress | 36,013 | 33,488 | ||
Utility property, plant and equipment, net | 874,045 | 868,266 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 115 | 115 | ||
Total property, plant and equipment, net | 874,160 | 868,381 | ||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 11,146 | 10,658 | 28,006 | |
Restricted cash | 0 | 0 | ||
Advances to affiliates | 0 | 0 | ||
Customer accounts receivable, net | 32,461 | 38,216 | ||
Accrued unbilled revenues, net | 24,052 | 25,102 | ||
Other accounts receivable, net | 7,619 | 13,318 | ||
Fuel oil stock, at average cost | 15,596 | 17,968 | ||
Materials and supplies, at average cost | 14,470 | 14,397 | ||
Prepayments and other | 6,713 | 7,724 | ||
Regulatory assets | 6,484 | 5,771 | ||
Total current assets | 118,541 | 133,154 | ||
Other long-term assets | ||||
Operating lease right-of-use assets | 25,733 | 27,470 | ||
Regulatory assets | 14,050 | 13,575 | ||
Other | 36,846 | 36,439 | ||
Total other long-term assets | 76,629 | 77,484 | ||
Total assets | 1,069,330 | 1,079,019 | ||
Capitalization | ||||
Common stock equity | 364,177 | 359,790 | 346,629 | 344,720 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 7,000 | 7,000 | ||
Long-term debt, net | 244,251 | 249,339 | ||
Total capitalization | 615,428 | 616,129 | ||
Current liabilities | ||||
Current portion of operating lease liabilities | 7,098 | 7,025 | ||
Current portion of long-term debt | 4,992 | |||
Accounts payable | 28,690 | 29,418 | ||
Interest and dividends payable | 3,808 | 3,098 | ||
Taxes accrued, including revenue taxes | 34,955 | 43,932 | ||
Regulatory liabilities | 8,353 | 8,508 | ||
Other | 27,837 | 33,240 | ||
Total current liabilities | 115,733 | 125,221 | ||
Deferred credits and other liabilities | ||||
Operating lease liabilities | 18,989 | 20,792 | ||
Finance lease liabilities | 34,879 | 35,043 | ||
Deferred income taxes | 51,699 | 51,661 | ||
Regulatory liabilities | 202,178 | 199,173 | ||
Unamortized tax credits | 11,351 | 11,650 | ||
Defined benefit pension and other postretirement benefit plans liability | 0 | 0 | ||
Other | 19,073 | 19,350 | ||
Total deferred credits and other liabilities | 338,169 | 337,669 | ||
Total liabilities and shareholders’ equity | 1,069,330 | 1,079,019 | ||
Hawaii Electric Light | Reportable Legal Entities | Hawaiian Electric Consolidated | Affiliated Entity | ||||
Current liabilities | ||||
Short-term borrowings from non-affiliates | 0 | 0 | ||
Maui Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||||
Utility property, plant and equipment | ||||
Land | 3,514 | 3,594 | ||
Plant and equipment | 1,389,730 | 1,374,890 | ||
Financing lease right-of-use assets | 0 | 0 | ||
Less accumulated depreciation | (612,183) | (605,273) | ||
Construction in progress | 45,619 | 38,899 | ||
Utility property, plant and equipment, net | 826,680 | 812,110 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 1,532 | 1,532 | ||
Total property, plant and equipment, net | 828,212 | 813,642 | ||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 7,331 | 5,587 | 38,546 | |
Restricted cash | 0 | 0 | ||
Advances to affiliates | 0 | 0 | ||
Customer accounts receivable, net | 29,297 | 33,346 | ||
Accrued unbilled revenues, net | 22,712 | 24,175 | ||
Other accounts receivable, net | 21,606 | 32,521 | ||
Fuel oil stock, at average cost | 24,369 | 22,041 | ||
Materials and supplies, at average cost | 35,792 | 35,702 | ||
Prepayments and other | 14,572 | 11,638 | ||
Regulatory assets | 6,735 | 3,762 | ||
Total current assets | 162,414 | 168,772 | ||
Other long-term assets | ||||
Operating lease right-of-use assets | 8,856 | 9,551 | ||
Regulatory assets | 24,476 | 23,359 | ||
Other | 33,266 | 33,129 | ||
Total other long-term assets | 66,598 | 66,039 | ||
Total assets | 1,057,224 | 1,048,453 | ||
Capitalization | ||||
Common stock equity | 363,968 | 362,344 | 358,506 | 357,036 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 5,000 | 5,000 | ||
Long-term debt, net | 256,152 | 258,422 | ||
Total capitalization | 625,120 | 625,766 | ||
Current liabilities | ||||
Current portion of operating lease liabilities | 2,838 | 2,804 | ||
Current portion of long-term debt | 1,998 | |||
Accounts payable | 30,931 | 25,520 | ||
Interest and dividends payable | 4,870 | 3,074 | ||
Taxes accrued, including revenue taxes | 29,540 | 37,808 | ||
Regulatory liabilities | 6,308 | 8,038 | ||
Other | 36,320 | 50,170 | ||
Total current liabilities | 205,805 | 197,914 | ||
Deferred credits and other liabilities | ||||
Operating lease liabilities | 6,320 | 7,044 | ||
Finance lease liabilities | 0 | 0 | ||
Deferred income taxes | 68,328 | 67,311 | ||
Regulatory liabilities | 113,821 | 111,554 | ||
Unamortized tax credits | 11,232 | 11,532 | ||
Defined benefit pension and other postretirement benefit plans liability | 0 | 0 | ||
Other | 26,598 | 27,332 | ||
Total deferred credits and other liabilities | 226,299 | 224,773 | ||
Total liabilities and shareholders’ equity | 1,057,224 | 1,048,453 | ||
Maui Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | Affiliated Entity | ||||
Current liabilities | ||||
Short-term borrowings from non-affiliates | 93,000 | 70,500 | ||
Other subsidiaries | 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 | 0 | ||
Advances to affiliates | 0 | 0 | ||
Customer accounts receivable, net | 0 | 0 | ||
Accrued unbilled revenues, net | 0 | 0 | ||
Other accounts receivable, net | 0 | 0 | ||
Fuel oil stock, at average cost | 0 | 0 | ||
Materials and supplies, at average cost | 0 | 0 | ||
Prepayments and other | 0 | 0 | ||
Regulatory assets | 0 | 0 | ||
Total current assets | 77 | 77 | ||
Other long-term assets | ||||
Operating lease right-of-use assets | 0 | 0 | ||
Regulatory assets | 0 | 0 | ||
Other | 0 | 0 | ||
Total other long-term assets | 0 | 0 | ||
Total assets | 77 | 77 | ||
Capitalization | ||||
Common stock equity | 77 | 77 | $ 77 | $ 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 | |||
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 and other postretirement benefit plans liability | 0 | 0 | ||
Other | 0 | |||
Total deferred credits and other liabilities | 0 | 0 | ||
Total liabilities and shareholders’ equity | 77 | 77 | ||
Other subsidiaries | Reportable Legal Entities | Hawaiian Electric Consolidated | Affiliated Entity | ||||
Current liabilities | ||||
Short-term borrowings from non-affiliates | $ 0 | $ 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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Increase (decrease) in stockholders' equity | ||
Beginning balance | $ 2,344,841 | $ 2,202,499 |
Net income for common stock | 42,122 | 54,721 |
Other comprehensive loss, net of taxes | (9,801) | 20,488 |
Common stock dividends | (39,446) | |
Ending balance | 2,377,380 | 2,237,955 |
Hawaiian Electric Consolidated | ||
Increase (decrease) in stockholders' equity | ||
Beginning balance | 2,409,110 | 2,344,170 |
Net income for common stock | 39,221 | 47,009 |
Other comprehensive loss, net of taxes | (49) | (45) |
Common stock dividends | (13,000) | (32,250) |
Ending balance | 2,435,282 | 2,358,884 |
Consolidating adjustments | Hawaiian Electric Consolidated | ||
Increase (decrease) in stockholders' equity | ||
Beginning balance | (722,211) | (701,833) |
Net income for common stock | (6,024) | (11,541) |
Other comprehensive loss, net of taxes | 13 | 12 |
Common stock dividends | 8,150 | |
Ending balance | (728,222) | (705,212) |
Hawaiian Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||
Increase (decrease) in stockholders' equity | ||
Beginning balance | 2,409,110 | 2,344,170 |
Net income for common stock | 39,221 | 47,009 |
Other comprehensive loss, net of taxes | (49) | (45) |
Common stock dividends | (13,000) | (32,250) |
Ending balance | 2,435,282 | 2,358,884 |
Hawaii Electric Light | Reportable Legal Entities | Hawaiian Electric Consolidated | ||
Increase (decrease) in stockholders' equity | ||
Beginning balance | 359,790 | 344,720 |
Net income for common stock | 4,390 | 6,390 |
Other comprehensive loss, net of taxes | (3) | (6) |
Common stock dividends | (4,475) | |
Ending balance | 364,177 | 346,629 |
Maui Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | ||
Increase (decrease) in stockholders' equity | ||
Beginning balance | 362,344 | 357,036 |
Net income for common stock | 1,634 | 5,151 |
Other comprehensive loss, net of taxes | (10) | (6) |
Common stock dividends | (3,675) | |
Ending balance | 363,968 | 358,506 |
Other subsidiaries | Reportable Legal Entities | Hawaiian Electric Consolidated | ||
Increase (decrease) in stockholders' equity | ||
Beginning balance | 77 | 77 |
Net income for common stock | 0 | 0 |
Other comprehensive loss, net of taxes | 0 | 0 |
Ending balance | $ 77 | $ 77 |
Electric utility segment - Co_5
Electric utility segment - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Cash flows from operating activities | |||
Net cash provided by operating activities | $ 124,619 | $ 180,952 | |
Cash flows from investing activities | |||
Capital expenditures | (99,550) | (124,297) | |
Other | (1,568) | 2,148 | |
Net cash used in investing activities | (5,592) | (137,468) | |
Cash flows from financing activities | |||
Common stock dividends | 0 | (39,446) | |
Proceeds from issuance of long-term debt | 4,673 | 150,000 | |
Net decrease in short-term borrowings with original maturities of three months or less | 0 | (88,666) | |
Other | (8,026) | (5,535) | |
Net cash provided by (used in) financing activities | (310,878) | 71,139 | |
Net increase in cash, cash equivalents and restricted cash | (191,851) | 114,623 | |
Cash, cash equivalents and restricted cash, beginning of period | 694,574 | 204,927 | |
Cash, cash equivalents and restricted cash, end of period | 502,723 | 319,550 | |
Less: Restricted cash | (17,531) | (4,216) | $ (15,028) |
Cash and cash equivalents | 485,192 | 315,334 | 679,546 |
Hawaiian Electric Consolidated | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 127,201 | 169,355 | |
Cash flows from investing activities | |||
Capital expenditures | (98,032) | (122,139) | |
Advanced (to) from affiliates | 0 | 0 | |
Other | (1,641) | 1,545 | |
Net cash used in investing activities | (99,673) | (120,594) | |
Cash flows from financing activities | |||
Common stock dividends | 0 | (32,250) | |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (499) | (499) | |
Proceeds from issuance of long-term debt | 0 | 150,000 | |
Net decrease in short-term borrowings with original maturities of three months or less | 0 | (87,967) | |
Payments of obligations under finance leases | (1,800) | (575) | |
Other | (1,552) | (690) | |
Net cash provided by (used in) financing activities | (3,851) | 28,019 | |
Net increase in cash, cash equivalents and restricted cash | 23,677 | 76,780 | |
Cash, cash equivalents and restricted cash, beginning of period | 108,077 | 39,242 | |
Cash, cash equivalents and restricted cash, end of period | 131,754 | 116,022 | |
Less: Restricted cash | (2,000) | 0 | (2,000) |
Cash and cash equivalents | 129,754 | 116,022 | 106,077 |
Consolidating adjustments | Hawaiian Electric Consolidated | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 0 | (8,150) | |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | |
Advanced (to) from affiliates | 22,500 | (26,200) | |
Other | 0 | 0 | |
Net cash used in investing activities | 22,500 | (26,200) | |
Cash flows from financing activities | |||
Common stock dividends | 8,150 | ||
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | |
Proceeds from issuance of long-term debt | 0 | ||
Net decrease in short-term borrowings with original maturities of three months or less | (22,500) | 26,200 | |
Payments of obligations under finance leases | 0 | ||
Other | 0 | 0 | |
Net cash provided by (used in) financing activities | (22,500) | 34,350 | |
Net increase in cash, cash equivalents and restricted cash | 0 | 0 | |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 | |
Cash, cash equivalents and restricted cash, end of period | 0 | ||
Less: Restricted cash | 0 | 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 | 103,556 | 143,356 | |
Cash flows from investing activities | |||
Capital expenditures | (55,261) | (74,916) | |
Advanced (to) from affiliates | (22,500) | 0 | |
Other | (1,093) | 1,094 | |
Net cash used in investing activities | (78,854) | (73,822) | |
Cash flows from financing activities | |||
Common stock dividends | (32,250) | ||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (499) | (270) | |
Proceeds from issuance of long-term debt | 100,000 | ||
Net decrease in short-term borrowings with original maturities of three months or less | 0 | (114,167) | |
Payments of obligations under finance leases | (1,646) | (575) | |
Other | (1,112) | (458) | |
Net cash provided by (used in) financing activities | (3,257) | (47,720) | |
Net increase in cash, cash equivalents and restricted cash | 21,445 | 21,814 | |
Cash, cash equivalents and restricted cash, beginning of period | 91,755 | 27,579 | |
Cash, cash equivalents and restricted cash, end of period | 113,200 | ||
Less: Restricted cash | (2,000) | (2,000) | |
Cash and cash equivalents | 111,200 | 49,393 | 89,755 |
Hawaii Electric Light | Reportable Legal Entities | Hawaiian Electric Consolidated | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 15,965 | 18,733 | |
Cash flows from investing activities | |||
Capital expenditures | (14,954) | (20,747) | |
Advanced (to) from affiliates | 0 | 4,500 | |
Other | (240) | 153 | |
Net cash used in investing activities | (15,194) | (16,094) | |
Cash flows from financing activities | |||
Common stock dividends | (4,475) | ||
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | (134) | |
Proceeds from issuance of long-term debt | 25,000 | ||
Net decrease in short-term borrowings with original maturities of three months or less | 0 | 0 | |
Payments of obligations under finance leases | (154) | 0 | |
Other | (129) | (116) | |
Net cash provided by (used in) financing activities | (283) | 20,275 | |
Net increase in cash, cash equivalents and restricted cash | 488 | 22,914 | |
Cash, cash equivalents and restricted cash, beginning of period | 10,658 | 5,092 | |
Cash, cash equivalents and restricted cash, end of period | 11,146 | ||
Less: Restricted cash | 0 | 0 | |
Cash and cash equivalents | 11,146 | 28,006 | 10,658 |
Maui Electric | Reportable Legal Entities | Hawaiian Electric Consolidated | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 7,680 | 15,416 | |
Cash flows from investing activities | |||
Capital expenditures | (27,817) | (26,476) | |
Advanced (to) from affiliates | 0 | 21,700 | |
Other | (308) | 298 | |
Net cash used in investing activities | (28,125) | (4,478) | |
Cash flows from financing activities | |||
Common stock dividends | (3,675) | ||
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | (95) | |
Proceeds from issuance of long-term debt | 25,000 | ||
Net decrease in short-term borrowings with original maturities of three months or less | 22,500 | 0 | |
Payments of obligations under finance leases | 0 | 0 | |
Other | (311) | (116) | |
Net cash provided by (used in) financing activities | 22,189 | 21,114 | |
Net increase in cash, cash equivalents and restricted cash | 1,744 | 32,052 | |
Cash, cash equivalents and restricted cash, beginning of period | 5,587 | 6,494 | |
Cash, cash equivalents and restricted cash, end of period | 7,331 | ||
Less: Restricted cash | 0 | 0 | |
Cash and cash equivalents | 7,331 | 38,546 | 5,587 |
Other subsidiaries | 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 | |
Advanced (to) from affiliates | 0 | 0 | |
Other | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | |
Cash flows from financing activities | |||
Common stock dividends | 0 | ||
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | |
Proceeds from issuance of long-term debt | 0 | ||
Net 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 (used in) financing activities | 0 | 0 | |
Net increase 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 | 0 | |
Cash and cash equivalents | $ 77 | $ 77 | $ 77 |
Bank segment - Income Statement
Bank segment - Income Statement Data (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Noninterest income | ||
Noninterest income | $ 775,144 | $ 822,384 |
Noninterest expense | ||
Income before income taxes | 54,269 | 70,304 |
Income taxes | 11,674 | 15,110 |
Net income (loss) | 42,595 | 55,194 |
Other comprehensive (loss) income, net of tax benefits | (9,801) | 20,488 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 32,321 | 75,209 |
American Savings Bank (ASB) | ||
Interest and dividend income | ||
Interest and fees on loans | 72,971 | 64,842 |
Interest and dividends on investment securities | 14,964 | 14,637 |
Interest and dividend income | 87,935 | 79,479 |
Interest expense | ||
Interest on deposit liabilities | 17,432 | 6,837 |
Interest on other borrowings | 8,154 | 7,721 |
Total interest expense | 25,586 | 14,558 |
Net interest income | 62,349 | 64,921 |
Provision for credit losses | (2,159) | 1,175 |
Net interest income after provision for credit losses | 64,508 | 63,746 |
Noninterest income | ||
Total noninterest income | 17,209 | 14,378 |
Noninterest expense | ||
Compensation and employee benefits | 32,459 | 30,204 |
Occupancy | 5,063 | 5,588 |
Data processing | 4,846 | 5,012 |
Services | 4,151 | 2,595 |
Equipment | 2,649 | 2,646 |
Office supplies, printing and postage | 1,018 | 1,165 |
Marketing | 776 | 1,016 |
Other expense | 4,942 | 6,191 |
Noninterest expense | 55,904 | 54,417 |
Income before income taxes | 25,813 | 23,707 |
Income taxes | 4,879 | 5,145 |
Net income (loss) | 20,934 | 18,562 |
Other comprehensive (loss) income, net of tax benefits | (9,768) | 18,430 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 11,166 | 36,992 |
American Savings Bank (ASB) | Fees from other financial services | ||
Noninterest income | ||
Noninterest income | 4,874 | 4,679 |
American Savings Bank (ASB) | Fee income on deposit liabilities | ||
Noninterest income | ||
Noninterest income | 4,898 | 4,599 |
American Savings Bank (ASB) | Fee income on other financial products | ||
Noninterest income | ||
Noninterest income | 2,743 | 2,744 |
American Savings Bank (ASB) | Bank-owned life insurance | ||
Noninterest income | ||
Noninterest income | 3,584 | 1,425 |
American Savings Bank (ASB) | Mortgage banking income | ||
Noninterest income | ||
Noninterest income | 424 | 130 |
American Savings Bank (ASB) | Other income, net | ||
Noninterest income | ||
Noninterest income | $ 686 | $ 801 |
Bank segment - Reconciliation o
Bank segment - Reconciliation of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Condensed Income Statements, Captions [Line Items] | ||
Revenues | $ 897,158 | $ 928,237 |
Less / Add back: Retirement defined benefits credit—other than service costs | (1,282) | (1,152) |
Total expenses | 820,739 | 834,719 |
Operating income - bank | 76,419 | 93,518 |
Income before income taxes | 54,269 | 70,304 |
American Savings Bank (ASB) | ||
Condensed Income Statements, Captions [Line Items] | ||
Interest and dividend income | 87,935 | 79,479 |
Noninterest income | 17,209 | 14,378 |
Revenues | 105,144 | 93,857 |
Total interest expense | 25,586 | 14,558 |
Provision for credit losses | (2,159) | 1,175 |
Noninterest expense | 55,904 | 54,417 |
Less / Add back: Retirement defined benefits credit—other than service costs | (281) | (187) |
Total expenses | 79,612 | 70,337 |
Operating income - bank | 25,532 | 23,520 |
Income before income taxes | $ 25,813 | $ 23,707 |
Bank segment - Balance Sheets D
Bank segment - Balance Sheets Data (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||||
Cash and cash equivalents | $ 485,192 | $ 679,546 | $ 315,334 | |
Investment securities | ||||
Available-for-sale investment securities, at fair value | 1,091,889 | 1,136,439 | ||
Held-to-maturity, at amortized cost (fair value of $1,074,735 and $1,103,668, at March 31, 2024 and December 31, 2023, respectively) | 1,191,074 | 1,201,314 | ||
Held-to-maturity investment securities | 1,074,735 | |||
Stock in Federal Home Loan Bank, at cost | 32,489 | 14,728 | ||
Allowance for credit losses | (71,057) | (74,372) | (71,296) | $ (72,216) |
Loans held for investment, net | 6,045,665 | 6,106,438 | ||
Loans held for sale, at lower of cost or fair value | 2,923 | 15,168 | ||
Other assets | 915,205 | 877,959 | ||
Goodwill | 82,190 | 82,190 | ||
Total assets | 16,923,208 | 17,243,821 | ||
Liabilities and shareholder’s equity | ||||
Other | 772,060 | 853,349 | ||
Total liabilities | 14,511,535 | 14,864,687 | ||
Retained earnings | 968,842 | 926,720 | ||
Accumulated other comprehensive loss, net of tax benefits | ||||
Accumulated other comprehensive loss, net of tax benefits | (299,151) | (289,350) | ||
Common stock equity | 2,377,380 | 2,344,841 | $ 2,237,955 | $ 2,202,499 |
Total liabilities and shareholders’ equity | 16,923,208 | 17,243,821 | ||
Other assets | ||||
Premises and equipment, net | 6,183,503 | 6,150,126 | ||
Other assets | 915,205 | 877,959 | ||
Other liabilities | ||||
Other liabilities | 772,060 | 853,349 | ||
American Savings Bank (ASB) | ||||
Assets | ||||
Cash and due from banks | 126,259 | 184,383 | ||
Interest-bearing deposits | 100,681 | 251,072 | ||
Cash and cash equivalents | 226,940 | 435,455 | ||
Investment securities | ||||
Available-for-sale investment securities, at fair value | 1,091,889 | 1,136,439 | ||
Held-to-maturity, at amortized cost (fair value of $1,074,735 and $1,103,668, at March 31, 2024 and December 31, 2023, respectively) | 1,191,074 | 1,201,314 | ||
Held-to-maturity investment securities | 1,074,735 | 1,103,668 | ||
Stock in Federal Home Loan Bank, at cost | 32,489 | 14,728 | ||
Loans held for investment | 6,116,722 | 6,180,810 | ||
Allowance for credit losses | (71,057) | (74,372) | ||
Loans held for investment, net | 6,045,665 | 6,106,438 | ||
Loans held for sale, at lower of cost or fair value | 2,923 | 15,168 | ||
Other assets | 687,059 | 681,460 | ||
Goodwill | 82,190 | 82,190 | ||
Total assets | 9,360,229 | 9,673,192 | ||
Liabilities and shareholder’s equity | ||||
Deposit liabilities—noninterest-bearing | 2,557,240 | 2,599,762 | ||
Deposit liabilities—interest-bearing | 5,447,824 | 5,546,016 | ||
Other borrowings | 593,000 | 750,000 | ||
Other | 220,570 | 247,563 | ||
Total liabilities | 8,818,634 | 9,143,341 | ||
Common stock | 1 | 1 | ||
Additional paid-in capital | 358,645 | 358,067 | ||
Retained earnings | 484,989 | 464,055 | ||
Accumulated other comprehensive loss, net of tax benefits | ||||
Net unrealized losses on securities | (293,466) | (282,963) | ||
Retirement benefit plans | (8,574) | (9,309) | ||
Accumulated other comprehensive loss, net of tax benefits | (302,040) | (292,272) | ||
Common stock equity | 541,595 | 529,851 | ||
Total liabilities and shareholders’ equity | 9,360,229 | 9,673,192 | ||
Other assets | ||||
Bank-owned life insurance | 191,448 | 187,857 | ||
Premises and equipment, net | 184,684 | 187,042 | ||
Accrued interest receivable | 29,697 | 28,472 | ||
Mortgage-servicing rights | 8,050 | 8,169 | ||
Low-income housing investments | 108,314 | 112,234 | ||
Deferred tax asset | 108,240 | 104,292 | ||
Other | 56,626 | 53,394 | ||
Other assets | 687,059 | 681,460 | ||
Other liabilities | ||||
Accrued expenses | 114,289 | 115,231 | ||
Cashier’s checks | 34,908 | 40,479 | ||
Advance payments by borrowers | 5,559 | 10,107 | ||
Other | 65,814 | 81,746 | ||
Other liabilities | $ 220,570 | $ 247,563 |
Bank segment - Components of In
Bank segment - Components of Investment Securities (Details) $ in Thousands | Mar. 31, 2024 USD ($) issue | Dec. 31, 2023 USD ($) issue |
Available-for-sale | ||
Amortized cost | $ 1,315,900 | |
Available-for-sale investment securities, at fair value | 1,091,889 | $ 1,136,439 |
Held-to-maturity | ||
Held-to-maturity investment securities, at amortized cost | 1,191,074 | 1,201,314 |
Held-to-maturity investment securities | 1,074,735 | |
American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 1,315,900 | 1,341,886 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (224,011) | (205,447) |
Available-for-sale investment securities, at fair value | $ 1,091,889 | $ 1,136,439 |
Gross unrealized losses, less than 12 months, number of issues | issue | 2 | 3 |
Gross unrealized losses, less than 12 months, fair value | $ 1,340 | $ 1,649 |
Gross unrealized losses, less than 12 months, amount | $ (17) | $ (22) |
Gross unrealized losses, 12 months or longer, number of issues | issue | 126 | 128 |
Gross unrealized losses, 12 months or longer, fair value | $ 1,076,332 | $ 1,120,432 |
Gross unrealized losses, 12 months or more, amount | (223,994) | (205,425) |
Held-to-maturity | ||
Held-to-maturity investment securities, at amortized cost | 1,191,074 | 1,201,314 |
Gross unrealized gains | 85 | 2,221 |
Gross unrealized losses | (116,424) | (99,867) |
Held-to-maturity investment securities | $ 1,074,735 | $ 1,103,668 |
Less than 12 months, number of issues | issue | 55 | 37 |
Less than 12 months, fair value | $ 549,389 | $ 378,326 |
Less than 12 months, amount | $ (18,604) | $ (7,610) |
12 months or longer, number of issues | issue | 48 | 46 |
12 months or longer: fair value | $ 500,823 | $ 484,864 |
12 months or longer, amount | (97,820) | (92,257) |
U.S. Treasury and federal agency obligations | American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 10,052 | 12,437 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (415) | (427) |
Available-for-sale investment securities, at fair value | $ 9,637 | $ 12,010 |
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 | 8 | 9 |
Gross unrealized losses, 12 months or longer, fair value | $ 9,637 | $ 12,010 |
Gross unrealized losses, 12 months or more, amount | (415) | (427) |
Held-to-maturity | ||
Held-to-maturity investment securities, at amortized cost | 59,923 | 59,917 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (7,830) | (7,135) |
Held-to-maturity investment securities | $ 52,093 | $ 52,782 |
Less than 12 months, number of issues | issue | 0 | 0 |
Less than 12 months, fair value | $ 0 | $ 0 |
Less than 12 months, amount | $ 0 | $ 0 |
12 months or longer, number of issues | issue | 3 | 3 |
12 months or longer: fair value | $ 52,094 | $ 52,782 |
12 months or longer, amount | (7,830) | (7,135) |
Mortgage-backed securities | American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 1,256,426 | 1,279,852 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (221,292) | (202,684) |
Available-for-sale investment securities, at fair value | $ 1,035,134 | $ 1,077,168 |
Gross unrealized losses, less than 12 months, number of issues | issue | 2 | 3 |
Gross unrealized losses, less than 12 months, fair value | $ 1,340 | $ 1,649 |
Gross unrealized losses, less than 12 months, amount | $ (17) | $ (22) |
Gross unrealized losses, 12 months or longer, number of issues | issue | 115 | 116 |
Gross unrealized losses, 12 months or longer, fair value | $ 1,033,794 | $ 1,075,519 |
Gross unrealized losses, 12 months or more, amount | (221,275) | (202,662) |
Held-to-maturity | ||
Held-to-maturity investment securities, at amortized cost | 1,131,151 | 1,141,397 |
Gross unrealized gains | 85 | 2,221 |
Gross unrealized losses | (108,594) | (92,732) |
Held-to-maturity investment securities | $ 1,022,642 | $ 1,050,886 |
Less than 12 months, number of issues | issue | 55 | 37 |
Less than 12 months, fair value | $ 549,389 | $ 378,326 |
Less than 12 months, amount | $ (18,604) | $ (7,610) |
12 months or longer, number of issues | issue | 45 | 43 |
12 months or longer: fair value | $ 448,729 | $ 432,082 |
12 months or longer, amount | (89,990) | (85,122) |
Corporate bonds | American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 35,205 | 35,239 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (2,304) | (2,336) |
Available-for-sale investment securities, at fair value | $ 32,901 | $ 32,903 |
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 | 3 | 3 |
Gross unrealized losses, 12 months or longer, fair value | $ 32,901 | $ 32,903 |
Gross unrealized losses, 12 months or more, amount | (2,304) | (2,336) |
Mortgage revenue bonds | American Savings Bank (ASB) | ||
Available-for-sale | ||
Amortized cost | 14,217 | 14,358 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Available-for-sale investment securities, at fair value | $ 14,217 | $ 14,358 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Available-for-sale | ||
Due in one year or less | $ 777 | |
Due after one year through five years | 44,480 | |
Due after five years through ten years | 14,217 | |
Due after ten years | 0 | |
Total amortized cost | 59,474 | |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,256,426 | |
Amortized cost | 1,315,900 | |
Held-to-maturity | ||
Due in one year or less | 0 | |
Due after one year through five years | 39,841 | |
Due after five years through ten years | 20,082 | |
Due after ten years | 0 | |
Total amortized cost | 59,923 | |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,131,151 | |
Held-to-maturity investment securities, at amortized cost | 1,191,074 | $ 1,201,314 |
Available-for-sale | ||
Due in one year or less | 759 | |
Due after one year through five years | 41,779 | |
Due after five years through ten years | 14,217 | |
Due after ten years | 0 | |
Total fair value | 56,755 | |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,035,134 | |
Available-for-sale investment securities, at fair value | 1,091,889 | $ 1,136,439 |
Held-to-maturity | ||
Due in one year or less | 0 | |
Due after one year through five years | 35,225 | |
Due after five years through ten years | 16,868 | |
Due after ten years | 0 | |
Total fair value | 52,093 | |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,022,642 | |
Held-to-maturity investment securities | $ 1,074,735 |
Bank segment - Loans Receivable
Bank segment - Loans Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 6,145,255 | $ 6,210,578 | ||
Less: Deferred fees and discounts | (28,533) | (29,768) | ||
Allowance for credit losses | (71,057) | (74,372) | $ (71,296) | $ (72,216) |
Loans held for investment, net | 6,045,665 | 6,106,438 | ||
Real estate loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 5,184,344 | 5,195,019 | ||
Residential 1-4 family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 2,598,091 | 2,595,162 | ||
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 1,368,394 | 1,374,038 | ||
Home equity line of credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 996,049 | 1,017,207 | ||
Residential land | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 18,197 | 18,364 | ||
Commercial construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 185,857 | 172,405 | ||
Residential construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 17,756 | 17,843 | ||
Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 704,638 | 743,303 | ||
Consumer loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 256,273 | $ 272,256 |
Bank segment - Narrative (Detai
Bank segment - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Allowance for credit losses | |||
Other bank borrowings | $ 593,000,000 | $ 750,000,000 | |
American Savings Bank (ASB) | |||
Allowance for credit losses | |||
Minimum benchmark percentage of loan to appraisal ratio which mortgage insurance is required | 80% | ||
Unused line and letters of credits | $ 1,900,000,000 | ||
Advances from the FHLB | 593,000,000 | 200,000,000 | |
American Savings Bank (ASB) | Federal Reserve Bank Advances | |||
Allowance for credit losses | |||
Other bank borrowings | 0 | $ 550,000,000 | |
Home equity line of credit | |||
Allowance for credit losses | |||
Conversion of debt | 6,500,000 | $ 7,800,000 | |
Commercial | |||
Allowance for credit losses | |||
Conversion of debt | 800,000 | 1,200,000 | |
Consumer | |||
Allowance for credit losses | |||
Conversion of debt | $ 200,000 | $ 1,100,000 |
Bank segment - Allowance for Cr
Bank segment - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Allowance for credit losses: | ||
Beginning balance | $ 74,372 | $ 72,216 |
Charge-offs | (3,675) | (3,422) |
Recoveries | 1,519 | 1,327 |
Provision | (1,159) | 1,175 |
Ending balance | 71,057 | 71,296 |
Residential 1-4 family | ||
Allowance for credit losses: | ||
Charge-offs | (842) | (809) |
Commercial real estate | ||
Allowance for credit losses: | ||
Charge-offs | 0 | 0 |
Home equity line of credit | ||
Allowance for credit losses: | ||
Charge-offs | 0 | (63) |
Residential land | ||
Allowance for credit losses: | ||
Charge-offs | 0 | 0 |
Commercial construction | ||
Allowance for credit losses: | ||
Charge-offs | 0 | 0 |
Residential construction | ||
Allowance for credit losses: | ||
Charge-offs | 0 | 0 |
Real estate | Residential 1-4 family | ||
Allowance for credit losses: | ||
Beginning balance | 7,435 | 6,270 |
Charge-offs | (842) | (809) |
Recoveries | 186 | 4 |
Provision | (373) | (853) |
Ending balance | 6,406 | 4,612 |
Real estate | Commercial real estate | ||
Allowance for credit losses: | ||
Beginning balance | 22,185 | 21,898 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | (1,851) | 803 |
Ending balance | 20,334 | 22,701 |
Real estate | Home equity line of credit | ||
Allowance for credit losses: | ||
Beginning balance | 7,778 | 6,125 |
Charge-offs | 0 | (63) |
Recoveries | 238 | 17 |
Provision | 57 | (26) |
Ending balance | 8,073 | 6,053 |
Real estate | Residential land | ||
Allowance for credit losses: | ||
Beginning balance | 621 | 717 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 51 | (97) |
Ending balance | 672 | 620 |
Real estate | Commercial construction | ||
Allowance for credit losses: | ||
Beginning balance | 3,603 | 1,195 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | (202) | (460) |
Ending balance | 3,401 | 735 |
Real estate | Residential construction | ||
Allowance for credit losses: | ||
Beginning balance | 43 | 46 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | (2) | (18) |
Ending balance | 41 | 28 |
Commercial | ||
Allowance for credit losses: | ||
Beginning balance | 9,122 | 12,426 |
Charge-offs | (114) | (227) |
Recoveries | 95 | 398 |
Provision | (1,489) | (661) |
Ending balance | 7,614 | 11,936 |
Consumer | ||
Allowance for credit losses: | ||
Beginning balance | 23,585 | 23,539 |
Charge-offs | (2,719) | (2,323) |
Recoveries | 1,000 | 908 |
Provision | 2,650 | 2,487 |
Ending balance | $ 24,516 | $ 24,611 |
Bank segment - Allowance for Lo
Bank segment - Allowance for Loan Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Allowance for loan commitments: | ||
Beginning balance | $ 5,100 | $ 4,400 |
Provision | (1,000) | 0 |
Ending balance | 4,100 | 4,400 |
Real estate | Home equity line of credit | ||
Allowance for loan commitments: | ||
Beginning balance | 600 | 400 |
Provision | 0 | 0 |
Ending balance | 600 | 400 |
Real estate | Commercial construction | ||
Allowance for loan commitments: | ||
Beginning balance | 4,300 | 2,600 |
Provision | (1,200) | 0 |
Ending balance | 3,100 | 2,600 |
Commercial | ||
Allowance for loan commitments: | ||
Beginning balance | 200 | 1,400 |
Provision | 200 | 0 |
Ending balance | $ 400 | $ 1,400 |
Bank segment - Credit Risk Prof
Bank segment - Credit Risk Profile - Payment Activity and Assigned Grades (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Credit risk profile by internally assigned grade for loans | ||
Current year | $ 75,345 | $ 638,750 |
One year before current year | 630,920 | 1,212,344 |
Two years before current year | 1,176,407 | 1,081,072 |
Three years before current year | 1,066,554 | 747,623 |
Four years before current year | 738,844 | 234,179 |
Prior | 1,254,463 | 1,081,789 |
Revolving | 1,130,260 | 1,145,385 |
Converted to term loans | 72,462 | 69,436 |
Total | 6,145,255 | 6,210,578 |
30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 6,761 | 8,712 |
60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 3,666 | 8,148 |
Greater than 89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 24,812 | 23,073 |
Real estate | Residential 1-4 family | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 43,536 | 263,605 |
One year before current year | 260,253 | 411,257 |
Two years before current year | 403,815 | 732,821 |
Three years before current year | 724,507 | 401,163 |
Four years before current year | 396,319 | 104,976 |
Prior | 769,661 | 681,340 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 2,598,091 | 2,595,162 |
Real estate | Residential 1-4 family | Current | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 43,536 | 263,605 |
One year before current year | 260,253 | 407,304 |
Two years before current year | 401,887 | 729,256 |
Three years before current year | 722,614 | 399,766 |
Four years before current year | 395,190 | 104,487 |
Prior | 761,888 | 672,408 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 2,585,368 | 2,576,826 |
Real estate | Residential 1-4 family | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 708 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 268 |
Four years before current year | 0 | 0 |
Prior | 2,191 | 3,525 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 2,191 | 4,501 |
Real estate | Residential 1-4 family | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 726 |
Two years before current year | 0 | 2,694 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 773 | 1,745 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 773 | 5,165 |
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 |
One year before current year | 0 | 2,519 |
Two years before current year | 1,928 | 871 |
Three years before current year | 1,893 | 1,129 |
Four years before current year | 1,129 | 489 |
Prior | 4,809 | 3,662 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 9,759 | 8,670 |
Real estate | Home equity line of credit | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 932,778 | 957,388 |
Converted to term loans | 63,271 | 59,819 |
Total | 996,049 | 1,017,207 |
Real estate | Home equity line of credit | Current | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 929,649 | 954,461 |
Converted to term loans | 62,087 | 59,146 |
Total | 991,736 | 1,013,607 |
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 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 971 | 1,219 |
Converted to term loans | 700 | 262 |
Total | 1,671 | 1,481 |
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 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 740 | 597 |
Converted to term loans | 169 | 0 |
Total | 909 | 597 |
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 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 1,418 | 1,111 |
Converted to term loans | 315 | 411 |
Total | 1,733 | 1,522 |
Real estate | Residential land | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 1,955 | 3,788 |
One year before current year | 3,748 | 4,772 |
Two years before current year | 4,563 | 7,234 |
Three years before current year | 5,467 | 1,847 |
Four years before current year | 1,746 | 0 |
Prior | 718 | 723 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 18,197 | 18,364 |
Real estate | Residential land | Current | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 1,955 | 3,788 |
One year before current year | 3,748 | 4,097 |
Two years before current year | 3,888 | 7,234 |
Three years before current year | 5,467 | 1,847 |
Four years before current year | 1,746 | 0 |
Prior | 718 | 723 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 17,522 | 17,689 |
Real estate | Residential land | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Real estate | Residential land | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 675 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 675 |
Real estate | Residential land | Greater than 89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 0 |
Two years before current year | 675 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 675 | 0 |
Real estate | Residential construction | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 388 | 5,369 |
One year before current year | 6,189 | 10,984 |
Two years before current year | 10,440 | 1,490 |
Three years before current year | 739 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 17,756 | 17,843 |
Real estate | Residential construction | Current | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 388 | 5,369 |
One year before current year | 6,189 | 10,984 |
Two years before current year | 10,440 | 1,490 |
Three years before current year | 739 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 17,756 | 17,843 |
Real estate | Residential construction | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Real estate | Residential construction | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Real estate | Residential construction | Greater than 89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Real estate | Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 8,436 | 104,368 |
One year before current year | 104,489 | 386,119 |
Two years before current year | 384,828 | 193,683 |
Three years before current year | 192,636 | 267,458 |
Four years before current year | 265,611 | 90,783 |
Prior | 396,912 | 316,145 |
Revolving | 15,482 | 15,482 |
Converted to term loans | 0 | 0 |
Total | 1,368,394 | 1,374,038 |
Real estate | Commercial real estate | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 8,436 | 104,368 |
One year before current year | 104,489 | 384,144 |
Two years before current year | 382,853 | 180,986 |
Three years before current year | 191,109 | 267,458 |
Four years before current year | 265,611 | 65,625 |
Prior | 363,035 | 307,367 |
Revolving | 15,482 | 15,482 |
Converted to term loans | 0 | 0 |
Total | 1,331,015 | 1,325,430 |
Real estate | Commercial real estate | Special Mention | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 1,975 |
Two years before current year | 1,975 | 11,159 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 14,110 |
Prior | 17,338 | 3,008 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 19,313 | 30,252 |
Real estate | Commercial real estate | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 1,538 |
Three years before current year | 1,527 | 0 |
Four years before current year | 0 | 11,048 |
Prior | 13,991 | 5,770 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 15,518 | 18,356 |
Real estate | Commercial real estate | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 2,548 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 2,548 | 0 |
Real estate | Commercial real estate | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
Real estate | Commercial real estate | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
Real estate | Commercial real estate | Greater than 89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 11,048 | 11,048 |
Real estate | Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 45,863 |
One year before current year | 55,494 | 33,240 |
Two years before current year | 39,399 | 26,133 |
Three years before current year | 26,545 | 1,333 |
Four years before current year | 1,333 | 0 |
Prior | 0 | 0 |
Revolving | 63,086 | 65,836 |
Converted to term loans | 0 | 0 |
Total | 185,857 | 172,405 |
Real estate | Commercial construction | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 45,863 |
One year before current year | 55,494 | 33,240 |
Two years before current year | 39,399 | 26,133 |
Three years before current year | 26,545 | 1,333 |
Four years before current year | 1,333 | 0 |
Prior | 0 | 0 |
Revolving | 63,086 | 65,836 |
Converted to term loans | 0 | 0 |
Total | 185,857 | 172,405 |
Real estate | Commercial construction | Special Mention | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Real estate | Commercial construction | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Real estate | Commercial construction | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 0 | 0 |
Real estate | Commercial construction | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
Real estate | Commercial construction | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
Real estate | Commercial construction | Greater than 89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 0 |
Consumer | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 9,034 | 89,230 |
One year before current year | 78,524 | 156,225 |
Two years before current year | 145,293 | 10,243 |
Three years before current year | 8,526 | 1,748 |
Four years before current year | 1,179 | 530 |
Prior | 430 | 200 |
Revolving | 10,519 | 10,846 |
Converted to term loans | 2,768 | 3,234 |
Total | 256,273 | 272,256 |
Consumer | Current | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 8,829 | 87,686 |
One year before current year | 76,930 | 153,239 |
Two years before current year | 141,903 | 9,852 |
Three years before current year | 8,207 | 1,654 |
Four years before current year | 1,127 | 451 |
Prior | 406 | 200 |
Revolving | 10,207 | 10,663 |
Converted to term loans | 2,395 | 2,779 |
Total | 250,004 | 266,524 |
Consumer | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 205 | 805 |
One year before current year | 612 | 1,314 |
Two years before current year | 1,559 | 176 |
Three years before current year | 167 | 29 |
Four years before current year | 11 | 24 |
Prior | 11 | 0 |
Revolving | 152 | 56 |
Converted to term loans | 110 | 163 |
Total | 2,827 | 2,567 |
Consumer | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 385 |
One year before current year | 613 | 886 |
Two years before current year | 1,150 | 114 |
Three years before current year | 84 | 41 |
Four years before current year | 15 | 21 |
Prior | 3 | 0 |
Revolving | 70 | 60 |
Converted to term loans | 49 | 69 |
Total | 1,984 | 1,576 |
Consumer | Greater than 89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 354 |
One year before current year | 369 | 786 |
Two years before current year | 681 | 101 |
Three years before current year | 68 | 24 |
Four years before current year | 26 | 34 |
Prior | 10 | 0 |
Revolving | 90 | 67 |
Converted to term loans | 214 | 223 |
Total | 1,458 | 1,589 |
Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 11,996 | 126,527 |
One year before current year | 122,223 | 209,747 |
Two years before current year | 188,069 | 109,468 |
Three years before current year | 108,134 | 74,074 |
Four years before current year | 72,656 | 37,890 |
Prior | 86,742 | 83,381 |
Revolving | 108,395 | 95,833 |
Converted to term loans | 6,423 | 6,383 |
Total | 704,638 | 743,303 |
Commercial | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 11,996 | 124,667 |
One year before current year | 102,699 | 199,796 |
Two years before current year | 178,426 | 106,669 |
Three years before current year | 105,411 | 73,976 |
Four years before current year | 72,558 | 37,580 |
Prior | 83,332 | 80,012 |
Revolving | 99,943 | 87,206 |
Converted to term loans | 6,284 | 6,250 |
Total | 660,649 | 716,156 |
Commercial | Special Mention | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 1,860 |
One year before current year | 19,524 | 6,989 |
Two years before current year | 6,774 | 951 |
Three years before current year | 933 | 0 |
Four years before current year | 0 | 250 |
Prior | 228 | 0 |
Revolving | 7,176 | 7,352 |
Converted to term loans | 0 | 0 |
Total | 34,635 | 17,402 |
Commercial | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 2,962 |
Two years before current year | 2,869 | 1,848 |
Three years before current year | 1,790 | 98 |
Four years before current year | 0 | 60 |
Prior | 3,182 | 3,369 |
Revolving | 1,276 | 1,275 |
Converted to term loans | 139 | 133 |
Total | 9,256 | 9,745 |
Commercial | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Current year | 0 | 0 |
One year before current year | 0 | 0 |
Two years before current year | 0 | 0 |
Three years before current year | 0 | 0 |
Four years before current year | 98 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Converted to term loans | 0 | 0 |
Total | 98 | 0 |
Commercial | 30-59 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 72 | 163 |
Commercial | 60-89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | 0 | 135 |
Commercial | Greater than 89 days past due | ||
Credit risk profile by internally assigned grade for loans | ||
Total | $ 139 | $ 244 |
Bank segment - Gross Charge by
Bank segment - Gross Charge by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Credit risk profile by internally assigned grade for loans | ||
Charge offs current fiscal year of origination | $ 166 | $ 189 |
Charge offs one years prior of origination year | 937 | 1,524 |
Charge offs two years prior of origination year | 1,703 | 413 |
Charge offs three years prior of origination year | 418 | 57 |
Charge offs four years prior of origination year | 36 | 184 |
Charge offs more than five years prior of origination year | 415 | 1,055 |
Total | 3,675 | 3,422 |
Consumer | ||
Credit risk profile by internally assigned grade for loans | ||
Charge offs current fiscal year of origination | 166 | 189 |
Charge offs one years prior of origination year | 937 | 1,524 |
Charge offs two years prior of origination year | 1,342 | 319 |
Charge offs three years prior of origination year | 127 | 57 |
Charge offs four years prior of origination year | 36 | 176 |
Charge offs more than five years prior of origination year | 111 | 58 |
Total | 2,719 | 2,323 |
Commercial | ||
Credit risk profile by internally assigned grade for loans | ||
Charge offs current fiscal year of origination | 0 | 0 |
Charge offs one years prior of origination year | 0 | 0 |
Charge offs two years prior of origination year | 0 | 51 |
Charge offs three years prior of origination year | 14 | 0 |
Charge offs four years prior of origination year | 0 | 8 |
Charge offs more than five years prior of origination year | 100 | 168 |
Total | 114 | 227 |
Residential 1-4 family | ||
Credit risk profile by internally assigned grade for loans | ||
Charge offs current fiscal year of origination | 0 | 0 |
Charge offs one years prior of origination year | 0 | 0 |
Charge offs two years prior of origination year | 361 | 0 |
Charge offs three years prior of origination year | 277 | 0 |
Charge offs four years prior of origination year | 0 | 0 |
Charge offs more than five years prior of origination year | 204 | 809 |
Total | 842 | 809 |
Home equity line of credit | ||
Credit risk profile by internally assigned grade for loans | ||
Charge offs current fiscal year of origination | 0 | 0 |
Charge offs one years prior of origination year | 0 | 0 |
Charge offs two years prior of origination year | 0 | 43 |
Charge offs three years prior of origination year | 0 | 0 |
Charge offs four years prior of origination year | 0 | 0 |
Charge offs more than five years prior of origination year | 0 | 20 |
Total | 0 | 63 |
Residential land | ||
Credit risk profile by internally assigned grade for loans | ||
Charge offs current fiscal year of origination | 0 | 0 |
Charge offs one years prior of origination year | 0 | 0 |
Charge offs two years prior of origination year | 0 | 0 |
Charge offs three years prior of origination year | 0 | 0 |
Charge offs four years prior of origination year | 0 | 0 |
Charge offs more than five years prior of origination year | 0 | 0 |
Total | 0 | 0 |
Residential construction | ||
Credit risk profile by internally assigned grade for loans | ||
Charge offs current fiscal year of origination | 0 | 0 |
Charge offs one years prior of origination year | 0 | 0 |
Charge offs two years prior of origination year | 0 | 0 |
Charge offs three years prior of origination year | 0 | 0 |
Charge offs four years prior of origination year | 0 | 0 |
Charge offs more than five years prior of origination year | 0 | 0 |
Total | 0 | 0 |
Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Charge offs current fiscal year of origination | 0 | 0 |
Charge offs one years prior of origination year | 0 | 0 |
Charge offs two years prior of origination year | 0 | 0 |
Charge offs three years prior of origination year | 0 | 0 |
Charge offs four years prior of origination year | 0 | 0 |
Charge offs more than five years prior of origination year | 0 | 0 |
Total | 0 | 0 |
Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Charge offs current fiscal year of origination | 0 | 0 |
Charge offs one years prior of origination year | 0 | 0 |
Charge offs two years prior of origination year | 0 | 0 |
Charge offs three years prior of origination year | 0 | 0 |
Charge offs four years prior of origination year | 0 | 0 |
Charge offs more than five years prior of origination year | 0 | 0 |
Total | $ 0 | $ 0 |
Bank segment - Credit Risk Pr_2
Bank segment - Credit Risk Profile - Payment Activity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Credit risk profile based on payment activity for loans | ||
Total financing receivables | $ 6,145,255 | $ 6,210,578 |
Amortized cost> 90 days and accruing | 425 | 425 |
Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,598,091 | 2,595,162 |
Amortized cost> 90 days and accruing | 425 | 425 |
Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,368,394 | 1,374,038 |
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 | 996,049 | 1,017,207 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 18,197 | 18,364 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 185,857 | 172,405 |
Amortized cost> 90 days and accruing | 0 | 0 |
Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 17,756 | 17,843 |
Amortized cost> 90 days and accruing | 0 | 0 |
Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 704,638 | 743,303 |
Amortized cost> 90 days and accruing | 0 | 0 |
Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 256,273 | 272,256 |
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 | 6,761 | 8,712 |
30-59 days past due | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,191 | 4,501 |
30-59 days past due | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
30-59 days past due | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,671 | 1,481 |
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 | 72 | 163 |
30-59 days past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,827 | 2,567 |
60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 3,666 | 8,148 |
60-89 days past due | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 773 | 5,165 |
60-89 days past due | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
60-89 days past due | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 909 | 597 |
60-89 days past due | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 675 |
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 | 0 | 135 |
60-89 days past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,984 | 1,576 |
90 days or more past due | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 24,812 | 23,073 |
90 days or more past due | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 9,759 | 8,670 |
90 days or more past due | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 11,048 | 11,048 |
90 days or more past due | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,733 | 1,522 |
90 days or more past due | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 675 | 0 |
90 days or more past due | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
90 days or more past due | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 0 | 0 |
90 days or more past due | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 139 | 244 |
90 days or more past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,458 | 1,589 |
Total past due | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 35,239 | 39,933 |
Total past due | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 12,723 | 18,336 |
Total past due | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 11,048 | 11,048 |
Total past due | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 4,313 | 3,600 |
Total past due | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 675 | 675 |
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 | 211 | 542 |
Total past due | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 6,269 | 5,732 |
Current | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 6,110,016 | 6,170,645 |
Current | Real estate | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 2,585,368 | 2,576,826 |
Current | Real estate | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 1,357,346 | 1,362,990 |
Current | Real estate | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 991,736 | 1,013,607 |
Current | Real estate | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 17,522 | 17,689 |
Current | Real estate | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 185,857 | 172,405 |
Current | Real estate | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 17,756 | 17,843 |
Current | Commercial | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | 704,427 | 742,761 |
Current | Consumer | ||
Credit risk profile based on payment activity for loans | ||
Total financing receivables | $ 250,004 | $ 266,524 |
Bank segment - Credit Risk Pr_3
Bank segment - Credit Risk Profile - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Credit risk profile based on nonaccrual loans | ||
With a related ACL | $ 25,639 | $ 24,800 |
Without a related ACL | 6,951 | 3,626 |
Total | 32,590 | 28,426 |
Real estate | Residential 1-4 family | ||
Credit risk profile based on nonaccrual loans | ||
With a related ACL | 8,758 | 7,755 |
Without a related ACL | 5,225 | 2,190 |
Total | 13,983 | 9,945 |
Real estate | Commercial real estate | ||
Credit risk profile based on nonaccrual loans | ||
With a related ACL | 11,048 | 11,048 |
Without a related ACL | 0 | 0 |
Total | 11,048 | 11,048 |
Real estate | Home equity line of credit | ||
Credit risk profile based on nonaccrual loans | ||
With a related ACL | 2,404 | 2,626 |
Without a related ACL | 1,538 | 1,135 |
Total | 3,942 | 3,761 |
Real estate | Residential land | ||
Credit risk profile based on nonaccrual loans | ||
With a related ACL | 675 | 780 |
Without a related ACL | 0 | 0 |
Total | 675 | 780 |
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 | 238 | 133 |
Without a related ACL | 188 | 301 |
Total | 426 | 434 |
Consumer | ||
Credit risk profile based on nonaccrual loans | ||
With a related ACL | 2,516 | 2,458 |
Without a related ACL | 0 | 0 |
Total | $ 2,516 | $ 2,458 |
Bank segment - Schedule of Loan
Bank segment - Schedule of Loan Modification (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Financing Receivable, Modified [Line Items] | |
Total | $ 6,674 |
% of total class of loans | 0.11% |
Term extension | |
Financing Receivable, Modified [Line Items] | |
Total | $ 266 |
Payment delay | |
Financing Receivable, Modified [Line Items] | |
Total | 4,433 |
Combination payment delay & term extension | |
Financing Receivable, Modified [Line Items] | |
Total | 1,975 |
Commercial | |
Financing Receivable, Modified [Line Items] | |
Total | $ 0 |
% of total class of loans | 0% |
Commercial | Term extension | |
Financing Receivable, Modified [Line Items] | |
Total | $ 0 |
Commercial | Payment delay | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Commercial | Combination payment delay & term extension | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Consumer | |
Financing Receivable, Modified [Line Items] | |
Total | $ 0 |
% of total class of loans | 0% |
Consumer | Term extension | |
Financing Receivable, Modified [Line Items] | |
Total | $ 0 |
Consumer | Payment delay | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Consumer | Combination payment delay & term extension | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Residential 1-4 family | Real estate | |
Financing Receivable, Modified [Line Items] | |
Total | $ 3,577 |
% of total class of loans | 0.14% |
Residential 1-4 family | Real estate | Term extension | |
Financing Receivable, Modified [Line Items] | |
Total | $ 266 |
Residential 1-4 family | Real estate | Payment delay | |
Financing Receivable, Modified [Line Items] | |
Total | 3,311 |
Residential 1-4 family | Real estate | Combination payment delay & term extension | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Commercial real estate | Real estate | |
Financing Receivable, Modified [Line Items] | |
Total | $ 1,975 |
% of total class of loans | 0.14% |
Commercial real estate | Real estate | Term extension | |
Financing Receivable, Modified [Line Items] | |
Total | $ 0 |
Commercial real estate | Real estate | Payment delay | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Commercial real estate | Real estate | Combination payment delay & term extension | |
Financing Receivable, Modified [Line Items] | |
Total | 1,975 |
Home equity line of credit | Real estate | |
Financing Receivable, Modified [Line Items] | |
Total | $ 447 |
% of total class of loans | 0.04% |
Home equity line of credit | Real estate | Term extension | |
Financing Receivable, Modified [Line Items] | |
Total | $ 0 |
Home equity line of credit | Real estate | Payment delay | |
Financing Receivable, Modified [Line Items] | |
Total | 447 |
Home equity line of credit | Real estate | Combination payment delay & term extension | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Residential land | Real estate | |
Financing Receivable, Modified [Line Items] | |
Total | $ 675 |
% of total class of loans | 3.71% |
Residential land | Real estate | Term extension | |
Financing Receivable, Modified [Line Items] | |
Total | $ 0 |
Residential land | Real estate | Payment delay | |
Financing Receivable, Modified [Line Items] | |
Total | 675 |
Residential land | Real estate | Combination payment delay & term extension | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Commercial construction | Real estate | |
Financing Receivable, Modified [Line Items] | |
Total | $ 0 |
% of total class of loans | 0% |
Commercial construction | Real estate | Term extension | |
Financing Receivable, Modified [Line Items] | |
Total | $ 0 |
Commercial construction | Real estate | Payment delay | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Commercial construction | Real estate | Combination payment delay & term extension | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Residential construction | Real estate | |
Financing Receivable, Modified [Line Items] | |
Total | $ 0 |
% of total class of loans | 0% |
Residential construction | Real estate | Term extension | |
Financing Receivable, Modified [Line Items] | |
Total | $ 0 |
Residential construction | Real estate | Payment delay | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Residential construction | Real estate | Combination payment delay & term extension | |
Financing Receivable, Modified [Line Items] | |
Total | $ 0 |
Bank segment - Financial Effect
Bank segment - Financial Effect of Loan Modification (Details) - Real estate | 3 Months Ended |
Mar. 31, 2024 | |
Residential 1-4 family | Term extension | |
Financing Receivable, Modified [Line Items] | |
Weighted average | 156 months |
Residential 1-4 family | Payment delay | |
Financing Receivable, Modified [Line Items] | |
Weighted average | 9 months |
Commercial real estate | Term extension | |
Financing Receivable, Modified [Line Items] | |
Weighted average | 9 months |
Commercial real estate | Payment delay | |
Financing Receivable, Modified [Line Items] | |
Weighted average | 9 months |
Home equity line of credit | Payment delay | |
Financing Receivable, Modified [Line Items] | |
Weighted average | 9 months |
Residential land | Payment delay | |
Financing Receivable, Modified [Line Items] | |
Weighted average | 9 months |
Bank segment - Credit Risk Pr_4
Bank segment - Credit Risk Profile - Payment Activity for Loan (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Credit risk profile based on payment activity for loans | |
Total | $ 6,674 |
Current | |
Credit risk profile based on payment activity for loans | |
Total | 2,688 |
30-59 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
60-89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Greater than 89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 3,986 |
Real estate | Residential 1-4 family | |
Credit risk profile based on payment activity for loans | |
Total | 3,577 |
Real estate | Residential 1-4 family | Current | |
Credit risk profile based on payment activity for loans | |
Total | 266 |
Real estate | Residential 1-4 family | 30-59 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Residential 1-4 family | 60-89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Residential 1-4 family | Greater than 89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 3,311 |
Real estate | Commercial real estate | |
Credit risk profile based on payment activity for loans | |
Total | 1,975 |
Real estate | Commercial real estate | Current | |
Credit risk profile based on payment activity for loans | |
Total | 1,975 |
Real estate | Commercial real estate | 30-59 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Commercial real estate | 60-89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Commercial real estate | Greater than 89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Home equity line of credit | |
Credit risk profile based on payment activity for loans | |
Total | 447 |
Real estate | Home equity line of credit | Current | |
Credit risk profile based on payment activity for loans | |
Total | 447 |
Real estate | Home equity line of credit | 30-59 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Home equity line of credit | 60-89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Home equity line of credit | Greater than 89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Residential land | |
Credit risk profile based on payment activity for loans | |
Total | 675 |
Real estate | Residential land | Current | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Residential land | 30-59 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Residential land | 60-89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Residential land | Greater than 89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 675 |
Real estate | Commercial construction | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Commercial construction | Current | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Commercial construction | 30-59 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Commercial construction | 60-89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Commercial construction | Greater than 89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Residential construction | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Residential construction | Current | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Residential construction | 30-59 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Residential construction | 60-89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Real estate | Residential construction | Greater than 89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Commercial | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Commercial | Current | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Commercial | 30-59 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Commercial | 60-89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Commercial | Greater than 89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Consumer | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Consumer | Current | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Consumer | 30-59 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Consumer | 60-89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | 0 |
Consumer | Greater than 89 days past due | |
Credit risk profile based on payment activity for loans | |
Total | $ 0 |
Bank segment - Collateral - Dep
Bank segment - Collateral - Dependent loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Nonaccrual [Line Items] | ||
Consumer mortgage loans collateralized by residential real estate property in foreclosure process | $ 4,800 | $ 3,400 |
Residential real estate property | Real estate | Residential 1-4 family | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 5,731 | 2,272 |
Residential real estate property | Real estate | Home equity line of credit | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 1,674 | 1,135 |
Collateral pledged | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 18,739 | 14,756 |
Collateral pledged | Real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 18,453 | 14,455 |
Commercial real estate | Real estate | Commercial real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | 11,048 | 11,048 |
Business assets | Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Collateral-dependent loans, amortized cost | $ 286 | $ 301 |
Bank segment - Mortgage Servici
Bank segment - Mortgage Servicing Rights (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) loan | Mar. 31, 2023 USD ($) loan | Dec. 31, 2023 USD ($) | |
Servicing contracts | |||
Prepayment rate: | |||
25 basis points adverse rate change | $ (125) | $ (90) | |
50 basis points adverse rate change | (274) | (204) | |
Discount rate: | |||
25 basis points adverse rate change | (197) | (203) | |
50 basis points adverse rate change | $ (391) | (402) | |
American Savings Bank (ASB) | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Number of mortgage loans repurchased | loan | 0 | 0 | |
Mortgage service fees | $ 900 | $ 900 | |
Mortgage servicing rights | |||
Servicing asset - beginning balance | 8,169 | ||
Servicing asset - ending balance | 8,050 | ||
American Savings Bank (ASB) | Residential loan | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Proceeds from sale of residential loans | 26,400 | 5,700 | |
Gain on sale of mortgage loans | 400 | 100 | |
American Savings Bank (ASB) | Servicing contracts | |||
Changes in Carrying Value of MSRs | |||
Gross carrying amount | 17,939 | 18,241 | |
Accumulated amortization | (9,889) | (10,072) | |
Valuation allowance | 0 | 0 | 0 |
Net carrying amount | 8,050 | 8,745 | 8,169 |
Mortgage servicing rights | |||
Servicing asset - beginning balance | 8,169 | 9,047 | |
Amount capitalized | 198 | 51 | |
Amortization | (317) | (353) | |
Other-than-temporary impairment | 0 | 0 | |
Servicing asset - ending balance | 8,050 | 8,745 | |
Valuation allowance for mortgage servicing rights | |||
Valuation allowance, beginning balance | 0 | 0 | |
Provision | 0 | 0 | |
Other-than-temporary impairment | 0 | 0 | |
Valuation allowance, ending balance | 0 | $ 0 | |
Unpaid principal balance | $ 1,399,266 | $ 1,402,736 | |
American Savings Bank (ASB) | Servicing contracts | Weighted average note rate | |||
Valuation allowance for mortgage servicing rights | |||
Weighted average measurement input | 0.0352 | 0.0347 | |
American Savings Bank (ASB) | Servicing contracts | Weighted average discount rate | |||
Valuation allowance for mortgage servicing rights | |||
Weighted average measurement input | 0.1000 | 0.1000 | |
American Savings Bank (ASB) | Servicing contracts | Weighted average prepayment speed | |||
Valuation allowance for mortgage servicing rights | |||
Weighted average measurement input | 0.0613 | 0.0571 |
Bank segment - Other Borrowings
Bank segment - Other Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Offsetting Liabilities [Line Items] | ||
Other bank borrowings | $ 593,000 | $ 750,000 |
American Savings Bank (ASB) | ||
Offsetting Liabilities [Line Items] | ||
Advances from the FHLB | $ 593,000 | $ 200,000 |
Bank segment - Derivative Finan
Bank segment - Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Derivative instrument | |||
Derivative, gain (loss), statement of income or comprehensive income | Revenues | Revenues | |
Derivative Financial Instruments Not Designated as Hedging Instruments | |||
Derivative instrument | |||
Asset derivatives | $ 137 | $ 86 | |
Liability derivatives | 14 | 18 | |
Net gains (losses) recognized in the Statement of Income | 55 | $ 4 | |
Interest rate lock commitments | |||
Derivative instrument | |||
Notional amount | 8,938 | 6,246 | |
Fair value | 136 | 86 | |
Interest rate lock commitments | Derivative Financial Instruments Not Designated as Hedging Instruments | |||
Derivative instrument | |||
Asset derivatives | 136 | 86 | |
Liability derivatives | 0 | 0 | |
Net gains (losses) recognized in the Statement of Income | 50 | 17 | |
Forward commitments | |||
Derivative instrument | |||
Notional amount | 6,900 | 5,500 | |
Fair value | (13) | (18) | |
Forward commitments | Derivative Financial Instruments Not Designated as Hedging Instruments | |||
Derivative instrument | |||
Asset derivatives | 1 | 0 | |
Liability derivatives | 14 | $ 18 | |
Net gains (losses) recognized in the Statement of Income | $ 5 | $ (13) |
Bank segment - Contingencies (D
Bank segment - Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
American Savings Bank (ASB) | ||
Loss Contingencies [Line Items] | ||
Unfunded commitments to fund the company's LIHTC | $ 87.9 | $ 87.9 |
Credit agreement and changes _2
Credit agreement and changes in debt - Narrative (Details) | May 14, 2023 USD ($) extensionOption institution | Feb. 18, 2022 USD ($) extensionOption | Dec. 08, 2023 USD ($) | Aug. 23, 2023 USD ($) | Aug. 15, 2023 USD ($) | May 14, 2021 USD ($) institution |
Credit Facilities | Hawaiian Electric Company, Inc. and Subsidiaries | ||||||
Credit agreement | ||||||
Number of financial institutions | institution | 9 | 9 | ||||
Number of financial institutions with extended termination date | institution | 8 | |||||
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 | |||||
Hawaiian Electric Facility | ||||||
Credit agreement | ||||||
Credit agreement | 200,000,000 | |||||
Credit agreement, remaining borrowing capacity | $ 180,000,000 | |||||
Hawaiian Electric Facility | Hawaiian Electric Company, Inc. and Subsidiaries | ||||||
Credit agreement | ||||||
Credit agreement | $ 275,000,000 | $ 200,000,000 | $ 200,000,000 | |||
Number of extension options | extensionOption | 2 | 2 | ||||
Extension period | 1 year | 1 year | ||||
Hawaiian Electric Facility | Hawaiian Electric Company, Inc. and Subsidiaries | Letter of Credit | ||||||
Credit agreement | ||||||
Credit agreement | $ 75,000,000 |
Shareholders' equity - Accumula
Shareholders' equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 2,344,841 | $ 2,202,499 |
Current period other comprehensive income (loss) | (9,801) | 20,488 |
Ending balance | 2,377,380 | 2,237,955 |
AOCI | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (289,350) | (336,028) |
Current period other comprehensive income (loss) | (9,801) | 20,488 |
Ending balance | (299,151) | (315,540) |
Net unrealized gains (losses) on securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (282,963) | (328,904) |
Current period other comprehensive income (loss) | (10,503) | 20,282 |
Ending balance | (293,466) | (308,622) |
Unrealized gains (losses) on derivatives | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 1,638 | 1,991 |
Current period other comprehensive income (loss) | 692 | 138 |
Ending balance | 2,330 | 2,129 |
Retirement benefit plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (8,025) | (9,115) |
Current period other comprehensive income (loss) | 10 | 68 |
Ending balance | (8,015) | (9,047) |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 2,409,110 | 2,344,170 |
Current period other comprehensive income (loss) | (49) | (45) |
Ending balance | 2,435,282 | 2,358,884 |
Hawaiian Electric Company, Inc. and Subsidiaries | AOCI | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 2,849 | 2,861 |
Current period other comprehensive income (loss) | (49) | (45) |
Ending balance | 2,800 | 2,816 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 2,849 | 2,861 |
Current period other comprehensive income (loss) | (49) | (45) |
Ending balance | $ 2,800 | $ 2,816 |
Shareholders' equity - Reclassi
Shareholders' equity - Reclassification out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reclassifications out of accumulated other comprehensive income/(loss) | ||
Revenues | $ (897,158) | $ (928,237) |
Interest expense | 31,591 | 28,798 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassifications out of accumulated other comprehensive income/(loss) | ||
Total reclassifications | 3,048 | 3,697 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Reclassifications out of accumulated other comprehensive income/(loss) | ||
Revenues | (788,578) | (830,361) |
Total reclassifications | (39,720) | (47,508) |
Hawaiian Electric Company, Inc. and Subsidiaries | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassifications out of accumulated other comprehensive income/(loss) | ||
Total reclassifications | (49) | (45) |
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 | 3,086 | 3,677 |
Net realized 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 | (48) | (48) |
Amortization of prior service credit and net 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 | (449) | (357) |
Amortization of prior service credit and net 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 | (508) | (470) |
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 | 459 | 425 |
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 | $ 459 | $ 425 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 775,144 | $ 822,384 |
Total revenues from other sources | 122,014 | 105,853 |
Revenues | 897,158 | 928,237 |
Services/goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 12,515 | 12,022 |
Services/goods transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 762,629 | 810,362 |
Electric energy sales - residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 241,522 | 255,550 |
Electric energy sales - commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 241,768 | 254,470 |
Electric energy sales - large light and power | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 271,087 | 290,978 |
Electric energy sales - other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 4,946 | 5,457 |
Bank fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 12,515 | 12,022 |
Other sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 3,306 | 3,907 |
Regulatory revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 21,190 | 15,604 |
Bank interest and dividend income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 87,935 | 79,479 |
Other bank noninterest income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 4,694 | 2,356 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 8,195 | 8,414 |
Electric utility | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 759,323 | 806,455 |
Total revenues from other sources | 29,255 | 23,906 |
Revenues | 788,578 | 830,361 |
Electric utility | Services/goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Electric utility | Services/goods transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 759,323 | 806,455 |
Electric utility | Electric energy sales - residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 241,522 | 255,550 |
Electric utility | Electric energy sales - commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 241,768 | 254,470 |
Electric utility | Electric energy sales - large light and power | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 271,087 | 290,978 |
Electric utility | Electric energy sales - other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 4,946 | 5,457 |
Electric utility | Bank fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Electric utility | Other sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Electric utility | Regulatory revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 21,190 | 15,604 |
Electric utility | Bank interest and dividend income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 0 | 0 |
Electric utility | Other bank noninterest income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 0 | 0 |
Electric utility | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 8,065 | 8,302 |
Bank | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 12,515 | 12,022 |
Total revenues from other sources | 92,629 | 81,835 |
Revenues | 105,144 | 93,857 |
Bank | Services/goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 12,515 | 12,022 |
Bank | Services/goods transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Bank | Electric energy sales - residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Bank | Electric energy sales - commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Bank | Electric energy sales - large light and power | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Bank | Electric energy sales - other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Bank | Bank fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 12,515 | 12,022 |
Bank | Other sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Bank | Regulatory revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 0 | 0 |
Bank | Bank interest and dividend income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 87,935 | 79,479 |
Bank | Other bank noninterest income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 4,694 | 2,356 |
Bank | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 0 | 0 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 3,306 | 3,907 |
Total revenues from other sources | 130 | 112 |
Revenues | 3,436 | 4,019 |
Other | Services/goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Other | Services/goods transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 3,306 | 3,907 |
Other | Electric energy sales - residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Other | Electric energy sales - commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Other | Electric energy sales - large light and power | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Other | Electric energy sales - other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Other | Bank fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Other | Other sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 3,306 | 3,907 |
Other | Regulatory revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 0 | 0 |
Other | Bank interest and dividend income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 0 | 0 |
Other | Other bank noninterest income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | 0 | 0 |
Other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from other sources | $ 130 | $ 112 |
Retirement benefits - Narrative
Retirement benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Retirement benefits | ||
Contributions made to defined benefit plans | $ 0 | $ 2 |
Contributions expected to be paid in current year | 8 | |
Expected payments for remainder of fiscal year | 3 | |
Retirement benefits expense | $ 11 | 11 |
Number of years for which regulatory asset/liability for each utility will be amortized, beginning with respective utility's next rate case (in years) | 5 years | |
Defined contribution plan, expenses recognized | $ 3 | 2.7 |
Cash contributions by the employer to defined contribution plan | 2.9 | 2.7 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Retirement benefits | ||
Contributions made to defined benefit plans | 2 | |
Contributions expected to be paid in current year | 8 | |
Expected payments for remainder of fiscal year | 1 | |
Retirement benefits expense | 11 | 11 |
Defined contribution plan, expenses recognized | 1.8 | 1.3 |
Cash contributions by the employer to defined contribution plan | $ 1.8 | $ 1.3 |
Retirement benefits - Component
Retirement benefits - Components of Net Periodic Benefit Cost for Consolidated HEI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pension benefits | ||
Defined Benefit Plan | ||
Service cost | $ 11,264 | $ 11,396 |
Interest cost | 26,506 | 25,621 |
Expected return on plan assets | (35,982) | (35,195) |
Amortization of net prior period gain | 0 | 0 |
Amortization of net actuarial (gain) losses | 111 | 188 |
Net periodic pension/benefit cost (return) | 1,899 | 2,010 |
Impact of PUC D&Os | 18,090 | 18,133 |
Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) | 19,989 | 20,143 |
Other benefits | ||
Defined Benefit Plan | ||
Service cost | 281 | 344 |
Interest cost | 1,867 | 2,157 |
Expected return on plan assets | (3,485) | (3,405) |
Amortization of net prior period gain | 0 | (219) |
Amortization of net actuarial (gain) losses | (713) | (449) |
Net periodic pension/benefit cost (return) | (2,050) | (1,572) |
Impact of PUC D&Os | 1,888 | 1,425 |
Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) | (162) | (147) |
Hawaiian Electric Company, Inc. and Subsidiaries | Pension benefits | ||
Defined Benefit Plan | ||
Service cost | 10,916 | 11,019 |
Interest cost | 24,627 | 23,698 |
Expected return on plan assets | (33,777) | (32,972) |
Amortization of net prior period gain | 0 | 0 |
Amortization of net actuarial (gain) losses | 12 | 19 |
Net periodic pension/benefit cost (return) | 1,778 | 1,764 |
Impact of PUC D&Os | 18,090 | 18,133 |
Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) | 19,868 | 19,897 |
Hawaiian Electric Company, Inc. and Subsidiaries | Other benefits | ||
Defined Benefit Plan | ||
Service cost | 278 | 340 |
Interest cost | 1,779 | 2,063 |
Expected return on plan assets | (3,434) | (3,353) |
Amortization of net prior period gain | 0 | (218) |
Amortization of net actuarial (gain) losses | (694) | (434) |
Net periodic pension/benefit cost (return) | (2,071) | (1,602) |
Impact of PUC D&Os | 1,888 | 1,425 |
Net periodic pension/benefit cost (return) (adjusted for impact of PUC D&Os) | $ (183) | $ (177) |
Share-based compensation - Narr
Share-based compensation - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 01, 2014 | Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based compensation | |||
Income tax benefit from compensation expense | $ 100,000 | $ 300,000 | |
Restricted stock units | |||
Share-based compensation | |||
Fair value of vested stock | 1,400,000 | 3,600,000 | |
Income tax benefit from compensation expense | 300,000 | 800,000 | |
Unrecognized share based compensation | $ 3,400,000 | ||
Weighted average period for recognition of unrecognized compensation cost (in years) | 1 year 7 months 6 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 | 0 | |
Unrecognized share based compensation | $ 2,100,000 | ||
Weighted average period for recognition of unrecognized compensation cost (in years) | 2 years 1 month 6 days | ||
LTIP awards linked to other performance conditions | |||
Share-based compensation | |||
Fair value of vested stock | $ 1,700,000 | 2,900,000 | |
Income tax benefit from compensation expense | 400,000 | $ 600,000 | |
Unrecognized share based compensation | $ 7,800,000 | ||
Weighted average period for recognition of unrecognized compensation cost (in years) | 2 years 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) | 2,500,000 | ||
Number of share issuable upon vesting and achievement of performance goals (in shares) | 900,000 | ||
Nonemployee Director Stock Plan | |||
Share-based compensation | |||
Shares available for future grant (in shares) | 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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based compensation | ||
Share-based compensation expense | $ 1.3 | $ 2 |
Income tax benefit | 0.1 | 0.3 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Share-based compensation | ||
Share-based compensation expense | 0.4 | 0.7 |
Income tax benefit | $ 0 | $ 0.1 |
Share-based compensation - Comm
Share-based compensation - Common Stock Granted to Nonemployee Directors (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based compensation | ||
Income tax benefit | $ 0.1 | $ 0.3 |
Common stock | ||
Share-based compensation | ||
Shares granted (in shares) | 0 | 1,509 |
Fair value | $ 0 | $ 0.1 |
Income tax benefit | $ 0 | $ 0 |
Share-based compensation - Chan
Share-based compensation - Changes in Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restricted stock units | ||
Shares | ||
Outstanding, beginning of period (in shares) | 189,024 | 182,528 |
Granted (in shares) | 0 | 100,088 |
Vested (in shares) | (97,050) | (80,077) |
Forfeited (in shares) | (1,071) | (406) |
Outstanding, end of period (in shares) | 90,903 | 202,133 |
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) | $ 0 | $ 4.2 |
Weighted-average grant-date fair value per share | ||
Outstanding, beginning of period (in dollars per share) | $ 41.23 | $ 39.75 |
Granted (in dollars per share) | 0 | 42.41 |
Vested (in dollars per share) | 40.39 | 39.30 |
Forfeited (in dollars per share) | 41.97 | 38.39 |
Outstanding, end of period (in dollars per share) | $ 42.11 | $ 41.25 |
LTIP linked to TRS | ||
Shares | ||
Outstanding, beginning of period (in shares) | 76,477 | 71,574 |
Granted (in shares) | 62,152 | 27,123 |
Vested (in shares) | (28,577) | (18,691) |
Forfeited (in shares) | (409) | 0 |
Outstanding, end of period (in shares) | 109,643 | 80,006 |
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) | $ 1.1 | $ 1.5 |
Weighted-average grant-date fair value per share | ||
Outstanding, beginning of period (in dollars per share) | $ 50.11 | $ 47.67 |
Granted (in dollars per share) | 17.28 | 55.98 |
Vested (in dollars per share) | 41.12 | 48.62 |
Forfeited (in dollars per share) | 55.63 | 0 |
Outstanding, end of period (in dollars per share) | $ 33.82 | $ 50.27 |
LTIP awards linked to other performance conditions | ||
Shares | ||
Outstanding, beginning of period (in shares) | 327,085 | 309,589 |
Granted (in shares) | 362,963 | 108,499 |
Vested (in shares) | (113,118) | (62,778) |
Increase above target (cancelled) (in shares) | (546) | 0 |
Forfeited (in shares) | (1,640) | 0 |
Outstanding, end of period (in shares) | 574,744 | 355,310 |
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) | $ 4.8 | $ 4.6 |
Weighted-average grant-date fair value per share | ||
Outstanding, beginning of period (in dollars per share) | $ 39.44 | $ 39.50 |
Granted (in dollars per share) | 13.09 | 42.41 |
Vested (in dollars per share) | 34.93 | 48.07 |
Increase above target (cancelled) (in dollars per share) | 41.29 | 0 |
Forfeited (in dollars per share) | 42.04 | 0 |
Outstanding, end of period (in dollars per share) | $ 23.68 | $ 38.87 |
Share-based compensation - Fair
Share-based compensation - Fair Value Assumptions (Details) - LTIP linked to TRS - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Risk-free interest rate | 4.25% | 4.19% |
Expected life in years | 3 years | 3 years |
Expected volatility | 52.50% | 33.10% |
Range of expected volatility for Peer Group, minimum rate | 12.30% | 28.70% |
Range of expected volatility for Peer Group, maximum rate | 52.50% | 38.80% |
Grant-date fair value (in dollars per share) | $ 17.28 | $ 55.98 |
Income taxes (Details)
Income taxes (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Contingency [Line Items] | |
Effective income tax, percent | 22% |
Cash flows (Details)
Cash flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplemental disclosures of cash flow information | ||
Interest paid to non-affiliates, net of amounts capitalized | $ 62 | $ 21 |
Income taxes paid (including refundable credits) | 18 | 0 |
Supplemental disclosures of noncash activities | ||
Estimated fair value of noncash contributions in aid of construction (investing) | 6 | 1 |
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 30 | 50 |
Right-of-use assets obtained in exchange for finance lease obligations (financing) | 13 | 40 |
Right-of-use assets obtained in exchange for operating lease obligations (investing) | 1 | 1 |
Common stock issued (gross) for director and executive/management compensation (financing) | 3 | 7 |
Obligations to fund low income housing investments (investing) | 0 | 7 |
Loans transferred from held for investment to held for sale (investing) | 20 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Supplemental disclosures of cash flow information | ||
Interest paid to non-affiliates, net of amounts capitalized | 14 | 6 |
Income taxes paid (including refundable credits) | 21 | 3 |
Supplemental disclosures of noncash activities | ||
Estimated fair value of noncash contributions in aid of construction (investing) | 6 | 1 |
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 29 | 48 |
Right-of-use assets obtained in exchange for finance lease obligations (financing) | 12 | 40 |
Common stock dividends payable (financing) | $ 13 | $ 0 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Financial assets | ||
Available-for-sale investment securities | $ 1,091,889 | $ 1,136,439 |
Held-to-maturity investment securities | $ 1,074,735 | |
Derivative asset, statement of financial position | Other | Other |
Financial liabilities | ||
Other bank borrowings | $ 593,000 | $ 750,000 |
Derivative asset, statement of financial position | Other | Other |
Carrying or notional amount | ||
Financial assets | ||
Available-for-sale investment securities | $ 1,091,889 | $ 1,136,439 |
Held-to-maturity investment securities | 1,191,074 | 1,201,314 |
Loans, net | 6,048,588 | 6,121,606 |
Mortgage servicing rights | 8,050 | 8,169 |
Derivative assets | 41,967 | 16,880 |
Financial liabilities | ||
Deposit liabilities - time certificates | 1,007,258 | 1,063,907 |
Other bank borrowings | 593,000 | 750,000 |
Long-term debt, net | 2,837,875 | 2,842,429 |
Derivative liabilities | 6,250 | 28,449 |
Carrying or notional amount | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 1,932,959 | 1,934,277 |
Estimated fair value | ||
Financial assets | ||
Available-for-sale investment securities | 1,091,889 | 1,136,439 |
Held-to-maturity investment securities | 1,074,735 | 1,103,668 |
Loans, net | 5,609,250 | 5,738,999 |
Mortgage servicing rights | 18,430 | 18,722 |
Derivative assets | 1,815 | 1,058 |
Financial liabilities | ||
Deposit liabilities - time certificates | 996,493 | 1,053,101 |
Other bank borrowings | 591,244 | 747,508 |
Long-term debt, net | 2,145,625 | 2,133,225 |
Derivative liabilities | 14 | 321 |
Estimated fair value | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 1,392,483 | 1,385,025 |
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 | 0 | 0 |
Financial liabilities | ||
Deposit liabilities - time certificates | 0 | 0 |
Other bank borrowings | 0 | 0 |
Long-term debt, net | 0 | 0 |
Derivative liabilities | 14 | 18 |
Estimated fair value | Quoted prices in active markets for identical assets (Level 1) | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 0 | 0 |
Estimated fair value | Significant other observable inputs (Level 2) | ||
Financial assets | ||
Available-for-sale investment securities | 1,077,672 | 1,122,081 |
Held-to-maturity investment securities | 1,074,735 | 1,103,668 |
Loans, net | 2,922 | 15,176 |
Mortgage servicing rights | 0 | 0 |
Derivative assets | 1,815 | 1,058 |
Financial liabilities | ||
Deposit liabilities - time certificates | 996,493 | 1,053,101 |
Other bank borrowings | 591,244 | 747,508 |
Long-term debt, net | 2,145,625 | 2,133,225 |
Derivative liabilities | 0 | 303 |
Estimated fair value | Significant other observable inputs (Level 2) | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 1,392,483 | 1,385,025 |
Estimated fair value | Significant unobservable inputs (Level 3) | ||
Financial assets | ||
Available-for-sale investment securities | 14,217 | 14,358 |
Held-to-maturity investment securities | 0 | 0 |
Loans, net | 5,606,328 | 5,723,823 |
Mortgage servicing rights | 18,430 | 18,722 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Deposit liabilities - time certificates | 0 | 0 |
Other bank borrowings | 0 | 0 |
Long-term debt, net | 0 | 0 |
Derivative liabilities | 0 | 0 |
Estimated fair value | Significant unobservable inputs (Level 3) | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | $ 0 | $ 0 |
Fair value measurements - Asset
Fair value measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair value measurements on a recurring basis | ||
Available-for-sale investment securities | $ 1,091,889 | $ 1,136,439 |
Fair value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 14 | 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 | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 14 | 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 | 1,815 | 1,058 |
Derivative liabilities | ||
Derivative liabilities | 0 | 303 |
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 | 1,077,672 | 1,122,081 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Bank | Interest rate lock commitments | ||
Derivative assets | ||
Derivative assets | 136 | 86 |
Fair value measurements on a recurring basis | Significant other observable inputs (Level 2) | Bank | Forward commitments | ||
Derivative assets | ||
Derivative assets | 1 | 0 |
Derivative liabilities | ||
Derivative liabilities | 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 | 1,678 | 972 |
Derivative liabilities | ||
Derivative liabilities | 0 | 303 |
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 | 1,035,134 | 1,077,168 |
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 | 9,637 | 12,010 |
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 | 32,901 | 32,903 |
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 |
Derivative liabilities | ||
Derivative liabilities | 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 | 14,217 | 14,358 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Bank | Interest rate lock commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Bank | Forward commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Significant unobservable inputs (Level 3) | 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 | $ 14,217 | $ 14,358 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 14,358 | $ 14,902 |
Principal payments received | (141) | (136) |
Purchases | 0 | 0 |
Unrealized gain (loss) included in other comprehensive income | 0 | 0 |
Ending balance | $ 14,217 | $ 14,766 |
Fair value measurements - Narra
Fair value measurements - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
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 | 0.0564 |