Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-8503 | |
Entity Tax Identification Number | 99-0208097 | |
Entity Incorporation, State or Country Code | HI | |
Entity Registrant Name | HAWAIIAN ELECTRIC INDUSTRIES INC | |
Entity Central Index Key | 0000354707 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Address, Address Line One | 1001 Bishop Street, Suite 2900 | |
Entity Address, City or Town | Honolulu | |
Entity Address, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 | |
City Area Code | 808 | |
Local Phone Number | 543-5662 | |
Title of each class | Common Stock, Without Par Value | |
Trading Symbol | HE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 108,972,564 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Entity File Number | 1-4955 | |
Entity Tax Identification Number | 99-0040500 | |
Entity Incorporation, State or Country Code | HI | |
Entity Registrant Name | HAWAIIAN ELECTRIC COMPANY INC | |
Entity Central Index Key | 0000046207 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Address, Address Line One | 1001 Bishop Street, Suite, 2500 | |
Entity Address, City or Town | Honolulu | |
Entity Address, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 | |
City Area Code | 808 | |
Local Phone Number | 543-7771 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,751,488 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Former Address | ||
Entity Information [Line Items] | ||
Entity Address, Address Line One | 900 Richards Street | |
Entity Address, City or Town | Honolulu | |
Entity Address, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Total revenues | $ 771,535 | $ 768,048 | $ 2,148,635 | $ 2,099,199 |
Expenses | ||||
Purchased power | 176,000 | 177,000 | 472,000 | 478,000 |
Total expenses | 674,227 | 669,984 | 1,900,756 | 1,850,447 |
Operating income (loss) | ||||
Total operating income | 97,308 | 98,064 | 247,879 | 248,752 |
Retirement defined benefits expense—other than service costs | (648) | (1,276) | (2,172) | (4,673) |
Interest expense, net—other than on deposit liabilities and other bank borrowings | (22,425) | (22,523) | (69,081) | (66,042) |
Allowance for borrowed funds used during construction | 1,208 | 1,006 | 3,465 | 3,815 |
Allowance for equity funds used during construction | 3,250 | 1,962 | 9,335 | 8,239 |
Income before income taxes | 78,693 | 77,233 | 189,426 | 190,091 |
Income taxes | 14,803 | 10,862 | 36,390 | 36,473 |
Net income | 63,890 | 66,371 | 153,036 | 153,618 |
Preferred stock dividends of subsidiaries | 471 | 471 | 1,417 | 1,417 |
Net income for common stock | $ 63,419 | $ 65,900 | $ 151,619 | $ 152,201 |
Basic earnings per common share (in dollars per share) | $ 0.58 | $ 0.61 | $ 1.39 | $ 1.40 |
Diluted earnings per common share (in dollars per share) | $ 0.58 | $ 0.60 | $ 1.39 | $ 1.40 |
Weighted-average number of common shares outstanding (in shares) | 108,973 | 108,879 | 108,941 | 108,847 |
Net effect of potentially dilutive shares (in shares) | 390 | 176 | 437 | 243 |
Weighted-average shares assuming dilution (in shares) | 109,363 | 109,055 | 109,378 | 109,090 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Revenues | ||||
Total revenues | $ 688,330 | $ 687,409 | $ 1,900,609 | $ 1,865,962 |
Expenses | ||||
Fuel oil | 199,093 | 206,551 | 541,322 | 545,236 |
Purchased power | 175,037 | 177,590 | 472,336 | 478,238 |
Other operation and maintenance | 124,415 | 113,553 | 361,805 | 333,805 |
Depreciation | 53,935 | 50,983 | 161,795 | 151,810 |
Taxes, other than income taxes | 64,057 | 64,696 | 179,304 | 176,324 |
Total expenses | 616,537 | 613,373 | 1,716,562 | 1,685,413 |
Operating income (loss) | ||||
Total operating income | 71,793 | 74,036 | 184,047 | 180,549 |
Retirement defined benefits expense—other than service costs | (723) | (682) | (2,127) | (2,934) |
Allowance for borrowed funds used during construction | 1,208 | 1,006 | 3,465 | 3,815 |
Allowance for equity funds used during construction | 3,250 | 1,962 | 9,335 | 8,239 |
Interest expense and other charges, net | (17,429) | (18,968) | (53,945) | (54,822) |
Income before income taxes | 58,099 | 57,354 | 140,775 | 134,847 |
Income taxes | 10,822 | 7,144 | 27,800 | 24,995 |
Net income | 47,277 | 50,210 | 112,975 | 109,852 |
Preferred stock dividends of subsidiaries | 228 | 228 | 686 | 686 |
Net income attributable to Hawaiian Electric | 47,049 | 49,982 | 112,289 | 109,166 |
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 810 | 810 |
Net income for common stock | 46,779 | 49,712 | 111,479 | 108,356 |
Electric utility | ||||
Revenues | ||||
Total revenues | 688,330 | 687,409 | 1,900,609 | 1,865,962 |
Expenses | ||||
Total expenses | 616,537 | 613,373 | 1,716,562 | 1,685,413 |
Operating income (loss) | ||||
Total operating income | 71,793 | 74,036 | 184,047 | 180,549 |
Income before income taxes | 58,099 | 57,354 | 140,775 | 134,847 |
Income taxes | 10,822 | 7,144 | 27,800 | 24,995 |
Net income | 47,277 | 50,210 | 112,975 | 109,852 |
Preferred stock dividends of subsidiaries | 498 | 498 | 1,496 | 1,496 |
Net income for common stock | 46,779 | 49,712 | 111,479 | 108,356 |
Bank | ||||
Revenues | ||||
Total revenues | 83,201 | 80,496 | 247,940 | 233,019 |
Expenses | ||||
Total expenses | 54,240 | 53,232 | 171,605 | 153,951 |
Operating income (loss) | ||||
Total operating income | 28,961 | 27,264 | 76,335 | 79,068 |
Income before income taxes | 29,157 | 26,831 | 76,611 | 77,845 |
Income taxes | 6,269 | 5,610 | 15,868 | 17,103 |
Net income | 22,888 | 21,221 | 60,743 | 60,742 |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 |
Net income for common stock | 22,888 | 21,221 | 60,743 | 60,742 |
Other | ||||
Revenues | ||||
Total revenues | 4 | 143 | 86 | 218 |
Expenses | ||||
Total expenses | 3,450 | 3,379 | 12,589 | 11,083 |
Operating income (loss) | ||||
Total operating income | (3,446) | (3,236) | (12,503) | (10,865) |
Income before income taxes | (8,563) | (6,952) | (27,960) | (22,601) |
Income taxes | (2,288) | (1,892) | (7,278) | (5,625) |
Net income | (6,275) | (5,060) | (20,682) | (16,976) |
Preferred stock dividends of subsidiaries | (27) | (27) | (79) | (79) |
Net income for common stock | $ (6,248) | $ (5,033) | $ (20,603) | $ (16,897) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income for common stock | $ 63,419 | $ 65,900 | $ 151,619 | $ 152,201 |
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) benefits | 4,253 | (5,123) | 27,846 | (22,768) |
Reclassification adjustment for net realized gains included in net income, net of taxes | (478) | 0 | (478) | 0 |
Derivatives qualifying as cash flow hedges: | ||||
Unrealized interest rate hedging losses arising during the period, net of tax benefits | (600) | 0 | (1,663) | 0 |
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 2,615 | 5,259 | 7,621 | 15,755 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (2,493) | (4,725) | (7,089) | (14,174) |
Other comprehensive income (loss), net of taxes | 3,297 | (4,589) | 26,237 | (21,187) |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 66,716 | 61,311 | 177,856 | 131,014 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Net income for common stock | 46,779 | 49,712 | 111,479 | 108,356 |
Retirement benefit plans: | ||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 2,519 | 4,753 | 7,162 | 14,259 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (2,493) | (4,725) | (7,089) | (14,174) |
Other comprehensive income (loss), net of taxes | 26 | 28 | 73 | 85 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ 46,805 | $ 49,740 | $ 111,552 | $ 108,441 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net unrealized gains (losses) on securities arising during the period, (taxes) benefits | $ (1,557) | $ 1,876 | $ (10,194) | $ 8,335 |
Reclassification adjustment for net realized gains included in net income, taxes | 175 | 0 | 175 | 0 |
Unrealized interest rate hedging losses arising during period, tax benefits | (208) | 0 | (577) | 0 |
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax benefits | 741 | 1,832 | 2,482 | 5,486 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, tax expense | 865 | 1,639 | 2,459 | 4,916 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax benefits | 874 | 1,648 | 2,484 | 4,945 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, tax expense | $ 865 | $ 1,639 | $ 2,459 | $ 4,916 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 176,988 | $ 169,208 |
Accounts receivable and unbilled revenues, net | 311,235 | 325,672 |
Available-for-sale investment securities, at fair value | 1,210,748 | 1,388,533 |
Held-to-maturity investment securities, at amortized cost | 132,704 | 141,875 |
Stock in Federal Home Loan Bank, at cost | 9,953 | 9,958 |
Loans held for investment, net | 5,031,296 | 4,790,902 |
Loans held for sale, at lower of cost or fair value | 17,115 | 1,805 |
Property, plant and equipment, net of accumulated depreciation | 5,006,394 | 4,830,118 |
Regulatory assets | 749,174 | 833,426 |
Other | 576,263 | 530,364 |
Goodwill | 82,190 | 82,190 |
Utility property, plant and equipment | ||
Total property, plant and equipment, net | 5,006,394 | 4,830,118 |
Current assets | ||
Cash and cash equivalents | 176,988 | 169,208 |
Other long-term assets | ||
Operating lease right-of-use assets | 213,910 | |
Total assets | 13,517,970 | 13,104,051 |
Liabilities | ||
Accounts payable | 189,244 | 214,773 |
Interest and dividends payable | 32,338 | 28,254 |
Deposit liabilities | 6,196,223 | 6,158,852 |
Short-term borrowings—other than bank | 163,836 | 73,992 |
Other bank borrowings | 129,190 | 110,040 |
Long-term debt, net—other than bank | 1,885,454 | 1,879,641 |
Deferred income taxes | 393,140 | 372,518 |
Operating lease liabilities | 213,166 | |
Regulatory liabilities | 963,740 | 950,236 |
Defined benefit pension and other postretirement benefit plans liability | 534,670 | 538,384 |
Other | 539,987 | 580,788 |
Total liabilities | 11,240,988 | 10,907,478 |
Capitalization | ||
Retained earnings | 590,651 | 543,623 |
Accumulated other comprehensive loss, net of tax benefits | (24,373) | (50,610) |
Total shareholders’ equity | 2,242,689 | 2,162,280 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies | ||
Current liabilities | ||
Interest and dividends payable | 32,338 | 28,254 |
Deferred credits and other liabilities | ||
Deferred income taxes | 393,140 | 372,518 |
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: 108,972,564 shares and 108,879,245 shares at September 30, 2019 and December 31, 2018, respectively | 1,676,411 | 1,669,267 |
Retained earnings | 590,651 | 543,623 |
Accumulated other comprehensive loss, net of tax benefits | (24,373) | (50,610) |
Total shareholders’ equity | 2,242,689 | 2,162,280 |
Total liabilities and shareholders’ equity | 13,517,970 | 13,104,051 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Assets | ||
Cash and cash equivalents | 32,507 | 35,877 |
Property, plant and equipment, net of accumulated depreciation | 4,695,742 | 4,522,102 |
Utility property, plant and equipment | ||
Land | 51,330 | 49,667 |
Plant and equipment | 7,097,286 | 6,809,671 |
Less accumulated depreciation | (2,686,388) | (2,577,342) |
Construction in progress | 226,556 | 233,145 |
Utility property, plant and equipment, net | 4,688,784 | 4,515,141 |
Nonutility property, plant and equipment, less accumulated depreciation | 6,958 | 6,961 |
Total property, plant and equipment, net | 4,695,742 | 4,522,102 |
Current assets | ||
Cash and cash equivalents | 32,507 | 35,877 |
Customer accounts receivable, net | 163,093 | 177,896 |
Accrued unbilled revenues, net | 123,820 | 121,738 |
Other accounts receivable, net | 4,618 | 6,215 |
Fuel oil stock, at average cost | 84,543 | 79,935 |
Materials and supplies, at average cost | 60,810 | 55,204 |
Prepayments and other | 46,321 | 32,118 |
Regulatory assets | 32,951 | 71,016 |
Total current assets | 548,663 | 579,999 |
Other long-term assets | ||
Operating lease right-of-use assets | 192,254 | |
Regulatory assets | 716,316 | 762,410 |
Other | 107,993 | 102,992 |
Total other long-term assets | 1,016,563 | 865,402 |
Total assets | 6,260,968 | 5,967,503 |
Liabilities | ||
Interest and dividends payable | 27,540 | 23,215 |
Deferred income taxes | 392,561 | 383,197 |
Operating lease liabilities | 192,000 | |
Capitalization | ||
Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 16,751,488 shares at September 30, 2019 and December 31, 2018) | 111,696 | 111,696 |
Premium on capital stock | 681,305 | 681,305 |
Retained earnings | 1,200,081 | 1,164,541 |
Accumulated other comprehensive loss, net of tax benefits | 172 | 99 |
Total shareholders’ equity | 1,993,254 | 1,957,641 |
Long-term debt, net | 1,322,255 | 1,418,802 |
Total capitalization | 3,349,802 | 3,410,736 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies | ||
Current liabilities | ||
Current portion of operating lease liabilities | 62,758 | 0 |
Current portion of long-term debt | 95,965 | 0 |
Short-term borrowings from non-affiliates | 112,353 | 25,000 |
Accounts payable | 152,562 | 171,791 |
Interest and dividends payable | 27,540 | 23,215 |
Taxes accrued, including revenue taxes | 204,839 | 233,333 |
Regulatory liabilities | 19,516 | 17,977 |
Other | 67,899 | 60,003 |
Total current liabilities | 743,432 | 531,319 |
Deferred credits and other liabilities | ||
Operating lease liabilities | 128,812 | 0 |
Deferred income taxes | 392,561 | 383,197 |
Regulatory liabilities | 944,224 | 932,259 |
Unamortized tax credits | 90,720 | 91,522 |
Defined benefit pension and other postretirement benefit plans liability | 500,186 | 503,659 |
Other | 111,231 | 114,811 |
Total deferred credits and other liabilities | 2,167,734 | 2,025,448 |
Shareholders’ equity | ||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 34,293 | 34,293 |
Retained earnings | 1,200,081 | 1,164,541 |
Accumulated other comprehensive loss, net of tax benefits | 172 | 99 |
Total shareholders’ equity | 1,993,254 | 1,957,641 |
Total liabilities and shareholders’ equity | $ 6,260,968 | $ 5,967,503 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property, plant and equipment, accumulated depreciation | $ 2,762,118 | $ 2,659,230 |
Preferred stock, authorized shares (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Common stock, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued shares (in shares) | 108,972,564 | 108,879,245 |
Common stock, outstanding shares (in shares) | 108,972,564 | 108,879,245 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Nonutility property, plant and equipment, accumulated depreciation | $ 110 | $ 1,255 |
Common stock, par value (in dollars per share) | $ 6.67 | $ 6.67 |
Common stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Common stock, outstanding shares (in shares) | 16,751,488 | 16,751,488 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders' Equity and Common Stock Equity (unaudited) - USD ($) $ in Thousands | Total | Hawaiian Electric Company, Inc. and Subsidiaries | Common stock | Common stockHawaiian Electric Company, Inc. and Subsidiaries | Premium on capital stockHawaiian Electric Company, Inc. and Subsidiaries | Retained Earnings | Retained EarningsHawaiian Electric Company, Inc. and Subsidiaries | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss)Hawaiian Electric Company, Inc. and Subsidiaries |
Beginning Balance at Dec. 31, 2017 | $ 2,097,386 | $ 1,845,283 | $ 1,662,491 | $ 107,634 | $ 614,675 | $ 476,836 | $ 1,124,193 | $ (41,941) | $ (1,219) |
Beginning Balance (in shares) at Dec. 31, 2017 | 108,788,000 | 16,142,000 | |||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 40,247 | 27,475 | 40,247 | 27,475 | |||||
Other comprehensive income (loss), net of tax (benefits) | (12,773) | 31 | (12,773) | 31 | |||||
Share-based expenses and other, net | 658 | $ 658 | |||||||
Share-based expenses and other, net (in shares) | 53,000 | ||||||||
Common stock dividends | (33,741) | (25,826) | (33,741) | (25,826) | |||||
Common stock issuance expenses | (8) | (8) | |||||||
Ending Balance at Mar. 31, 2018 | 2,091,777 | 1,846,955 | $ 1,663,149 | $ 107,634 | 614,667 | 483,342 | 1,125,842 | (54,714) | (1,188) |
Ending Balance (in shares) at Mar. 31, 2018 | 108,841,000 | 16,142,000 | |||||||
Beginning Balance at Dec. 31, 2017 | 2,097,386 | 1,845,283 | $ 1,662,491 | $ 107,634 | 614,675 | 476,836 | 1,124,193 | (41,941) | (1,219) |
Beginning Balance (in shares) at Dec. 31, 2017 | 108,788,000 | 16,142,000 | |||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 152,201 | 108,356 | |||||||
Other comprehensive income (loss), net of tax (benefits) | (21,187) | 85 | (21,187) | ||||||
Common stock dividends | (77,479) | ||||||||
Common stock issuance expenses | (8) | ||||||||
Ending Balance at Sep. 30, 2018 | 2,132,045 | 1,876,237 | $ 1,667,371 | $ 107,634 | 614,667 | 527,802 | 1,155,070 | (63,128) | (1,134) |
Ending Balance (in shares) at Sep. 30, 2018 | 108,879,000 | 16,142,000 | |||||||
Beginning Balance at Mar. 31, 2018 | 2,091,777 | 1,846,955 | $ 1,663,149 | $ 107,634 | 614,667 | 483,342 | 1,125,842 | (54,714) | (1,188) |
Beginning Balance (in shares) at Mar. 31, 2018 | 108,841,000 | 16,142,000 | |||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 46,054 | 31,169 | 46,054 | 31,169 | |||||
Other comprehensive income (loss), net of tax (benefits) | (3,825) | 26 | (3,825) | 26 | |||||
Share-based expenses and other, net | 2,752 | $ 2,752 | |||||||
Share-based expenses and other, net (in shares) | 38,000 | ||||||||
Common stock dividends | (33,740) | (25,826) | (33,740) | (25,826) | |||||
Ending Balance at Jun. 30, 2018 | 2,103,018 | 1,852,324 | $ 1,665,901 | $ 107,634 | 614,667 | 495,656 | 1,131,185 | (58,539) | (1,162) |
Ending Balance (in shares) at Jun. 30, 2018 | 108,879,000 | 16,142,000 | |||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 65,900 | 49,712 | 65,900 | 49,712 | |||||
Other comprehensive income (loss), net of tax (benefits) | (4,589) | 28 | (4,589) | 28 | |||||
Share-based expenses and other, net | 1,470 | $ 1,470 | |||||||
Share-based expenses and other, net (in shares) | 0 | ||||||||
Common stock dividends | (33,754) | (25,827) | (33,754) | (25,827) | |||||
Ending Balance at Sep. 30, 2018 | 2,132,045 | 1,876,237 | $ 1,667,371 | $ 107,634 | 614,667 | 527,802 | 1,155,070 | (63,128) | (1,134) |
Ending Balance (in shares) at Sep. 30, 2018 | 108,879,000 | 16,142,000 | |||||||
Beginning Balance at Dec. 31, 2018 | $ 2,162,280 | 1,957,641 | $ 1,669,267 | $ 111,696 | 681,305 | 543,623 | 1,164,541 | (50,610) | 99 |
Beginning Balance (in shares) at Dec. 31, 2018 | 108,879,245 | 108,879,000 | 16,751,000 | ||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | $ 45,688 | 32,126 | 45,688 | 32,126 | |||||
Other comprehensive income (loss), net of tax (benefits) | 9,241 | 24 | 9,241 | 24 | |||||
Share-based expenses and other, net | 1,166 | $ 1,166 | |||||||
Share-based expenses and other, net (in shares) | 58,000 | ||||||||
Common stock dividends | (34,860) | (25,313) | (34,860) | (25,313) | |||||
Ending Balance at Mar. 31, 2019 | 2,183,515 | 1,964,478 | $ 1,670,433 | $ 111,696 | 681,305 | 554,451 | 1,171,354 | (41,369) | 123 |
Ending Balance (in shares) at Mar. 31, 2019 | 108,937,000 | 16,751,000 | |||||||
Beginning Balance at Dec. 31, 2018 | $ 2,162,280 | 1,957,641 | $ 1,669,267 | $ 111,696 | 681,305 | 543,623 | 1,164,541 | (50,610) | 99 |
Beginning Balance (in shares) at Dec. 31, 2018 | 108,879,245 | 108,879,000 | 16,751,000 | ||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | $ 151,619 | 111,479 | |||||||
Other comprehensive income (loss), net of tax (benefits) | 26,237 | 73 | 26,237 | ||||||
Common stock dividends | (75,939) | ||||||||
Common stock issuance expenses | 0 | ||||||||
Ending Balance at Sep. 30, 2019 | $ 2,242,689 | 1,993,254 | $ 1,676,411 | $ 111,696 | 681,305 | 590,651 | 1,200,081 | (24,373) | 172 |
Ending Balance (in shares) at Sep. 30, 2019 | 108,972,564 | 108,973,000 | 16,751,000 | ||||||
Beginning Balance at Mar. 31, 2019 | $ 2,183,515 | 1,964,478 | $ 1,670,433 | $ 111,696 | 681,305 | 554,451 | 1,171,354 | (41,369) | 123 |
Beginning Balance (in shares) at Mar. 31, 2019 | 108,937,000 | 16,751,000 | |||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 42,512 | 32,574 | 42,512 | 32,574 | |||||
Other comprehensive income (loss), net of tax (benefits) | 13,699 | 23 | 13,699 | 23 | |||||
Share-based expenses and other, net | 3,720 | $ 3,720 | |||||||
Share-based expenses and other, net (in shares) | 35,000 | ||||||||
Common stock dividends | (34,860) | (25,313) | (34,860) | (25,313) | |||||
Ending Balance at Jun. 30, 2019 | 2,208,586 | 1,971,762 | $ 1,674,153 | $ 111,696 | 681,305 | 562,103 | 1,178,615 | (27,670) | 146 |
Ending Balance (in shares) at Jun. 30, 2019 | 108,972,000 | 16,751,000 | |||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 63,419 | 46,779 | 63,419 | 46,779 | |||||
Other comprehensive income (loss), net of tax (benefits) | 3,297 | 26 | 3,297 | 26 | |||||
Share-based expenses and other, net | 2,258 | $ 2,258 | |||||||
Share-based expenses and other, net (in shares) | 1,000 | ||||||||
Common stock dividends | (34,871) | (25,313) | (34,871) | (25,313) | |||||
Ending Balance at Sep. 30, 2019 | $ 2,242,689 | $ 1,993,254 | $ 1,676,411 | $ 111,696 | $ 681,305 | $ 590,651 | $ 1,200,081 | $ (24,373) | $ 172 |
Ending Balance (in shares) at Sep. 30, 2019 | 108,972,564 | 108,973,000 | 16,751,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Shareholders' Equity and Common Stock Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Common stock dividends (in dollars per share) | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.31 | $ 0.31 | $ 0.31 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net income | $ 153,036 | $ 153,618 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 172,307 | 159,646 |
Other amortization | 35,553 | 31,473 |
Provision for loan losses | 17,873 | 12,337 |
Loans originated, held for sale | (190,700) | (105,956) |
Proceeds from sale of loans, held for sale | 177,345 | 109,335 |
Deferred income taxes | 265 | 10,823 |
Share-based compensation expense | 8,142 | 5,891 |
Allowance for equity funds used during construction | (9,335) | (8,239) |
Other | (11,540) | (4,524) |
Changes in assets and liabilities | ||
Decrease (increase) in accounts receivable and unbilled revenues, net | 12,373 | (79,128) |
Increase in fuel oil stock | (3,438) | (5,060) |
Decrease (increase) in regulatory assets | 54,274 | (6,474) |
Increase (decrease) in accounts, interest and dividends payable | 215 | (7,122) |
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | (32,436) | (32,006) |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (2,794) | 7,517 |
Change in other assets and liabilities | (39,712) | 15,548 |
Net cash provided by operating activities | 341,428 | 257,679 |
Cash flows from investing activities | ||
Available-for-sale investment securities purchased | (4,823) | (190,411) |
Principal repayments on available-for-sale investment securities | 194,845 | 168,334 |
Proceeds from sale of available-for-sale investment securities | 19,810 | 0 |
Purchases of held-to-maturity investment securities | 0 | (62,096) |
Principal repayments of held-to-maturity investment securities | 9,183 | 4,007 |
Purchase of stock from Federal Home Loan Bank | (80,475) | (9,933) |
Redemption of stock from Federal Home Loan Bank | 80,480 | 11,480 |
Net increase in loans held for investment | (258,064) | (96,212) |
Proceeds from sale of commercial loans | 0 | 7,149 |
Capital expenditures | (332,273) | (380,623) |
Contributions to low income housing investments | (5,612) | (7,714) |
Other | 3,495 | 14,258 |
Net cash used in investing activities | (373,434) | (541,761) |
Cash flows from financing activities | ||
Net increase in deposit liabilities | 37,371 | 137,443 |
Net increase in short-term borrowings with original maturities of three months or less | 64,844 | 85,369 |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 19,150 | (17,374) |
Proceeds from issuance of short-term debt | 25,000 | 0 |
Proceeds from issuance of long-term debt | 208,970 | 100,000 |
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (204,278) | (1,867) |
Withheld shares for employee taxes on vested share-based compensation | (997) | (996) |
Common stock dividends | (104,591) | (101,235) |
Preferred stock dividends of subsidiaries | (1,417) | (1,417) |
Other | (4,266) | (5,668) |
Net cash provided by financing activities | 39,786 | 194,255 |
Net increase (decrease) in cash and cash equivalents | 7,780 | (89,827) |
Cash and cash equivalents, beginning of period | 169,208 | 261,881 |
Cash and cash equivalents, end of period | 176,988 | 172,054 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Cash flows from operating activities | ||
Net income | 112,975 | 109,852 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 161,795 | 151,810 |
Other amortization | 21,476 | 19,823 |
Deferred income taxes | (1,386) | 12,835 |
Allowance for equity funds used during construction | (9,335) | (8,239) |
Other | (5,629) | (1,952) |
Changes in assets and liabilities | ||
Decrease (increase) in accounts receivable | 14,337 | (53,139) |
Increase in accrued unbilled revenues | (2,082) | (20,648) |
Increase in fuel oil stock | (4,608) | (4,949) |
Increase in materials and supplies | (5,606) | (4,110) |
Decrease (increase) in regulatory assets | 54,274 | (6,474) |
Decrease in accounts payable | (9,261) | (8,712) |
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | (32,094) | (37,137) |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (2,837) | 5,888 |
Change in other assets and liabilities | (9,401) | 38,874 |
Net cash provided by operating activities | 282,618 | 193,722 |
Cash flows from investing activities | ||
Capital expenditures | (297,807) | (310,369) |
Other | 2,662 | 9,811 |
Net cash used in investing activities | (295,145) | (300,558) |
Cash flows from financing activities | ||
Net increase in short-term borrowings with original maturities of three months or less | 25,000 | |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 62,353 | 80,914 |
Proceeds from issuance of short-term debt | 25,000 | 0 |
Proceeds from issuance of long-term debt | 200,000 | 100,000 |
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (201,546) | 0 |
Common stock dividends | (75,939) | (77,479) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,496) | (1,496) |
Other | 785 | (396) |
Net cash provided by financing activities | 9,157 | 101,543 |
Net increase (decrease) in cash and cash equivalents | (3,370) | (5,293) |
Cash and cash equivalents, beginning of period | 35,877 | 12,517 |
Cash and cash equivalents, end of period | $ 32,507 | $ 7,224 |
Basis of presentation
Basis of presentation | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 . In the opinion of HEI’s and Hawaiian Electric’s management, the accompanying unaudited condensed consolidated financial statements contain all material adjustments required by GAAP to fairly state consolidated HEI’s and Hawaiian Electric’s financial positions as of September 30, 2019 and December 31, 2018 and the results of their operations for the three and nine months ended September 30, 2019 and 2018 and cash flows for the nine months ended September 30, 2019 and 2018 Recent accounting pronouncements. Leases . In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, “Leases (Topic 842),” which requires that lessees recognize a liability to make lease payments (the lease liability) and a right-of-use (ROU) asset, representing its right to use the underlying asset for the lease term, for all leases (except short-term leases) at the commencement date. For finance leases, a lessee is required to recognize interest on the lease liability separately from amortization of the ROU asset in the consolidated statements of income. For operating leases, a lessee is required to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis. The Company adopted ASU No. 2016-02 on January 1, 2019 and used the effective date as the date of initial application. Consequently, financial information for dates and periods before January 1, 2019 will not be updated and the disclosures required under the new standard will not be provided (i.e., the Company will continue to report prior comparative periods presented in the financial statements under Accounting Standards Codification (ASC) 840, including the required disclosures under ASC 840). The most significant effect of the new standard relates to the recognition of new ROU assets and lease liabilities on the Company’s balance sheet for purchase power agreements and real estate operating leases. On adoption, the Company recognized lease liabilities of approximately $257 million for the Company and approximately $236 million for the Utilities ( $215 million related to PPAs), based on the present value of the remaining minimum rental payments, with corresponding ROU assets for existing operating leases, under current leasing standards. In determining the lease liability upon transition, the Company used the incremental borrowing rates as of the adoption date based on the remaining lease term and remaining lease payments. See Note 6 for more information. Credit losses . In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ,” which is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations . ASU No. 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date (based on historical experience, current conditions and reasonable and supportable forecasts) and enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU No. 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The other-than-temporary impairment model of accounting for credit losses on available-for-sale debt securities will be replaced with an estimate of expected credit losses only when the fair value is below the amortized cost of the asset. The length of time the fair value of an available-for-sale debt security has been below the amortized cost will no longer impact the determination of whether a credit loss exists. The available-for-sale debt security model will also require the use of an allowance to record the estimated losses (and subsequent recoveries). The Company has assembled a cross-functional team that continues to work through its implementation plan. The Company is in the final stages of validating and testing the models that will be used to calculate the credit loss reserve for its loan portfolio and is conducting parallel runs of its new processes and controls. The allowance for credit losses is a material estimate of the Company, and given the change from an incurred loss model to a methodology that considers the credit loss over the expected life of the loan, the Company believes that the allowance for loan losses for its loans held for investment will increase at the adoption date. The magnitude of the increase will depend on the composition, characteristics and quality of its loans and off balance sheet credit exposures as well as the prevailing economic conditions as of the adoption date. Based on its assessment, the Company does not expect that the new standard will have a material impact to the Utilities’ customer and other accounts receivables and accrued unbilled revenue. The Company will continue to make refinements to its credit loss model throughout the remainder of 2019 and plans to adopt ASU No. 2016-13 in the first quarter of 2020. The guidance is to be applied on a modified retrospective basis with the cumulative effect of initially applying the amendments recognized in retained earnings at the date of initial application (January 1, 2020), and the Company expects the bank to remain well capitalized under the regulatory framework after the initial application of ASU No. 2016-03. Codification Improvements . In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which is intended to clarify certain issues related to the accounting for financial instruments. • With respect to Topic 326, Financial Instruments - Credit Losses , ASU No. 2019-04 allows entities to measure the allowance for credit losses on accrued interest receivable balances separately from other components of the amortized cost basis of associated financial assets, or to make an accounting policy election not to measure an allowance for credit losses on accrued interest receivable amounts if an entity writes off the uncollectible accrued interest receivable balance in a timely manner and makes certain disclosures. ASU No. 2019-04 also allows an entity to make an accounting policy election regarding the presentation and disclosure of accrued interest receivables and the related allowance for credit losses for those accrued interest receivables. ASU No. 2019-04 also clarifies certain issues related to transfers between classifications or categories for loans and debt securities, recoveries, variable interest rates and prepayments, vintage disclosures, and contractual extensions and renewal options. • With respect to Topic 815, Derivatives and Hedging , ASU No. 2019-04 provides amendments, among others, that address partial-term fair value hedges, fair value hedge basis adjustments, and certain transition requirements. • With respect to Topic 825, Financial Instruments , ASU No. 2019-04 clarifies the scope of the guidance and disclosure requirements with respect to recognizing and measuring financial instruments. The amended guidance in ASU No. 2019-04 will be effective for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted. The Company plans to adopt ASU No. 2019-04 in the first quarter of 2020 and is currently evaluating the impact of the ASU on the Company’s consolidated financial statements. Reclassifications. Reclassifications made to prior year financial statements to conform to the 2019 presentation include classifying contributions in aid of construction with capital expenditures in the cash flows from investing activities section of the condensed consolidated statements of cash flows for HEI and Hawaiian Electric. In addition, prior period disclosure of proceeds and repayments of other bank borrowings and the net increase in retail repurchase agreements contained in the “Net cash provided by financing activities” section of the consolidated statements of cash flows have been combined to conform to the current period presentation. |
Segment financial information
Segment financial information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment financial information | Segment financial information (in thousands) Electric utility Bank Other Total Three months ended September 30, 2019 Revenues from external customers $ 688,299 $ 83,201 $ 35 $ 771,535 Intersegment revenues (eliminations) 31 — (31 ) — Revenues $ 688,330 $ 83,201 $ 4 $ 771,535 Income (loss) before income taxes $ 58,099 $ 29,157 $ (8,563 ) $ 78,693 Income taxes (benefit) 10,822 6,269 (2,288 ) 14,803 Net income (loss) 47,277 22,888 (6,275 ) 63,890 Preferred stock dividends of subsidiaries 498 — (27 ) 471 Net income (loss) for common stock $ 46,779 $ 22,888 $ (6,248 ) $ 63,419 Nine months ended September 30, 2019 Revenues from external customers $ 1,900,552 $ 247,940 $ 143 $ 2,148,635 Intersegment revenues (eliminations) 57 — (57 ) — Revenues $ 1,900,609 $ 247,940 $ 86 $ 2,148,635 Income (loss) before income taxes $ 140,775 $ 76,611 $ (27,960 ) $ 189,426 Income taxes (benefit) 27,800 15,868 (7,278 ) 36,390 Net income (loss) 112,975 60,743 (20,682 ) 153,036 Preferred stock dividends of subsidiaries 1,496 — (79 ) 1,417 Net income (loss) for common stock $ 111,479 $ 60,743 $ (20,603 ) $ 151,619 Total assets (at September 30, 2019) $ 6,260,968 $ 7,135,250 $ 121,752 $ 13,517,970 Three months ended September 30, 2018 Revenues from external customers $ 687,396 $ 80,496 $ 156 $ 768,048 Intersegment revenues (eliminations) 13 — (13 ) — Revenues $ 687,409 $ 80,496 $ 143 $ 768,048 Income (loss) before income taxes $ 57,354 $ 26,831 $ (6,952 ) $ 77,233 Income taxes (benefit) 7,144 5,610 (1,892 ) 10,862 Net income (loss) 50,210 21,221 (5,060 ) 66,371 Preferred stock dividends of subsidiaries 498 — (27 ) 471 Net income (loss) for common stock $ 49,712 $ 21,221 $ (5,033 ) $ 65,900 Nine months ended September 30, 2018 Revenues from external customers $ 1,865,922 $ 233,019 $ 258 $ 2,099,199 Intersegment revenues (eliminations) 40 — (40 ) — Revenues $ 1,865,962 $ 233,019 $ 218 $ 2,099,199 Income (loss) before income taxes $ 134,847 $ 77,845 $ (22,601 ) $ 190,091 Income taxes (benefit) 24,995 17,103 (5,625 ) 36,473 Net income (loss) 109,852 60,742 (16,976 ) 153,618 Preferred stock dividends of subsidiaries 1,496 — (79 ) 1,417 Net income (loss) for common stock $ 108,356 $ 60,742 $ (16,897 ) $ 152,201 Total assets (at December 31, 2018) $ 5,967,503 $ 7,027,894 $ 108,654 $ 13,104,051 Intercompany electricity sales of the Utilities to the bank and “other” segments are not eliminated because those segments would need to purchase electricity from another source if it were not provided by the Utilities and the profit on such sales is nominal. Bank fees that ASB charges the Utilities and “other” segments are not eliminated because those segments would pay fees to another financial institution if they were to bank with another institution and the profit on such fees is nominal. Hamakua Energy, LLC’s (Hamakua Energy’s) sales to Hawaii Electric Light (a regulated affiliate) are eliminated in consolidation. |
Electric utility segment
Electric utility segment | 9 Months Ended |
Sep. 30, 2019 | |
Electric utility subsidiary [Abstract] | |
Electric utility segment | Electric utility segment HECO Capital Trust III. Trust III, a statutory trust, which was formed to effect the issuance of $50 million of cumulative quarterly income trust preferred securities in 2004 (2004 Trust Preferred Securities), and had at all times been a wholly-owned unconsolidated subsidiary of Hawaiian Electric, redeemed $50 million of its outstanding 2004 Trust Preferred Securities and $1.5 million of trust common securities on May 15, 2019. Subsequently, a Certificate of Cancellation of Statutory Trust was filed with the Delaware Secretary of State in order to cancel the Trust III, which became effective on June 10, 2019. For the year-to-date period ending on the Trust’s cancellation date on June 10, 2019 and nine month ended September 30, 2018, Trust III’s income statements consisted of $1.2 million and $2.5 million of interest income received from the 2004 Debentures; $1.2 million and $2.4 million of distributions to holders of the Trust Preferred Securities; $37,000 and $75,000 of common dividends on the trust common securities to Hawaiian Electric, respectively. Unconsolidated variable interest entities. Power purchase agreements . As of September 30, 2019 , the Utilities had four PPAs for firm capacity (excluding the PGV PPA as PGV has been offline since May 2018 due to lava flow on Hawaii Island) and other PPAs with independent power producers (IPPs) and Schedule Q providers (i.e., customers with cogeneration and/or power production facilities who buy power from or sell power to the Utilities), none of which are currently required to be consolidated as VIEs. Pursuant to the current accounting standards for VIEs, the Utilities are deemed to have a variable interest in Kalaeloa Partners, L.P. (Kalaeloa), AES Hawaii, Inc. (AES Hawaii) and Hamakua Energy by reason of the provisions of the PPA that the Utilities have with the three IPPs. However, management has concluded that the Utilities are not the primary beneficiary of Kalaeloa, AES Hawaii and Hamakua Energy because the Utilities do not have the power to direct the activities that most significantly impact the three IPPs’ economic performance nor the obligation to absorb their expected losses, if any, that could potentially be significant to the IPPs. Thus, the Utilities have not consolidated Kalaeloa, AES Hawaii and Hamakua Energy in its condensed consolidated financial statements. Hamakua Energy is an indirect subsidiary of Pacific Current and is consolidated in HEI’s condensed consolidated financial statements. For the other PPAs with IPPs, the Utilities have concluded that the consolidation of the IPPs was not required because either the Utilities do not have variable interests in the IPPs due to the absence of an obligation in the PPAs for the Utilities to absorb any variability of the IPPs, or the IPP was considered a “governmental organization,” and thus excluded from the scope of accounting standards for VIEs. Two IPPs of as-available energy declined to provide the information necessary for Utilities to determine the applicability of accounting standards for VIEs. If information is ultimately received from the IPPs, a possible outcome of future analyses of such information is the consolidation of one Commitments and contingencies. Fuel contracts . The fuel contract entered into in January 2019, by the Utilities and PAR Hawaii Refining, LLC, for the Utilities' low sulfur fuel oil, high sulfur fuel oil, No. 2 diesel, and ultra-low sulfur diesel requirements was approved by the PUC, and became effective on April 28, 2019 and terminates on December 31, 2022. The existing fuel contracts with Island Energy Services, LLC (IES), terminated on April 27, 2019, as agreed with IES under a mutual termination and release agreement entered into in November 2018. Contingencies . The Utilities are subject in the normal course of business to pending and threatened legal proceedings. Management does not anticipate that the aggregate ultimate liability arising out of these pending or threatened legal proceedings will be material to its financial position. However, the Utilities cannot rule out the possibility that such outcomes could have a material effect on the results of operations or liquidity for a particular reporting period in the future. Power purchase agreements . Purchases from all IPPs were as follows: Three months ended September 30 Nine months ended September 30 (in millions) 2019 2018 2019 2018 Kalaeloa $ 58 $ 62 $ 159 $ 154 AES Hawaii 38 38 102 107 HPOWER 20 19 57 51 Puna Geothermal Venture — — — 15 Hamakua Energy 17 17 51 39 Wind IPPs 30 31 73 84 Solar IPPs 11 8 26 22 Other IPPs 1 2 2 4 6 Total IPPs $ 176 $ 177 $ 472 $ 478 1 Includes hydro power and other PPAs Kalaeloa Partners, L.P. Under a 1988 PPA, as amended, Hawaiian Electric is committed to purchase 208 MW of firm capacity from Kalaeloa. Hawaiian Electric and Kalaeloa are currently in negotiations to address the PPA term that ended on May 23, 2016. The PPA automatically extends on a month-to-month basis as long as the parties are still negotiating in good faith. Hawaiian Electric and Kalaeloa have agreed that neither party will terminate the PPA (which has been subject to automatic extension on a month-to-month basis) prior to July 31, 2020, to allow for a negotiated resolution and PUC approval. AES Hawaii, Inc. Under a PPA entered into in March 1988, as amended (through Amendment No. 2) for a period of 30 years ending September 2022, Hawaiian Electric agreed to purchase 180 MW of firm capacity from AES Hawaii. Hawaiian Electric and AES Hawaii have been in dispute over an additional 9 MW of capacity. In February 2018, Hawaiian Electric reached agreement with AES Hawaii on an amendment to the PPA. However, in June 2018, the PUC issued an order suspending review of the amendment pending a Department of Health of the State of Hawaii ( DOH) decision on AES Hawaii’s request for approval of its Emission Reduction Plan and partnership with Hawaiian Electric. If approved by the PUC, the amendment will resolve AES Hawaii’s claims related to the additional capacity. Hu Honua Bioenergy, LLC (Hu Honua). In May 2012, Hawaii Electric Light signed a PPA, which the PUC approved in December 2013, with Hu Honua for 21.5 MW of renewable, dispatchable firm capacity fueled by locally grown biomass from a facility on the island of Hawaii. Under the terms of the PPA, the Hu Honua plant was scheduled to be in service in 2016. However, Hu Honua encountered construction and litigation delays, which resulted in an amended and restated PPA between Hawaii Electric Light and Hu Honua dated May 5, 2017. In July 2017, the PUC approved the amended and restated PPA, which becomes effective once the PUC’s order is final and non-appealable. In August 2017, the PUC’s approval was appealed by a third party. On May 10, 2019, the Hawaii Supreme Court issued a decision remanding the matter to the PUC for further proceedings consistent with the court’s decision which must include express consideration of Green House Gas emissions that would result from approving the PPA, whether the cost of energy under the PPA is reasonable in light of the potential for GHG emissions, and whether the terms of the PPA are prudent and in the public interest, in light of its potential hidden and long-term consequences. On June 20, 2019, the PUC issued an order reopening the docket for further proceedings. On September 29, 2019, the PUC issued an order setting the procedural schedule for the matter. Pre-hearing matters will be conducted through February 3, 2020. Thereafter, the PUC will set the date for an evidentiary hearing and post-hearing briefing. Hu Honua expects to complete construction of the plant in the fourth quarter of 2019. Utility projects . Many public utility projects require PUC approval and various permits from other governmental agencies. Difficulties in obtaining, or the inability to obtain, the necessary approvals or permits can result in significantly increased project costs or even cancellation of projects. In the event a project does not proceed, or if it becomes probable the PUC will disallow cost recovery for all or part of a project, or if PUC-imposed caps on project costs are expected to be exceeded, project costs may need to be written off in amounts that could result in significant reductions in Hawaiian Electric’s consolidated net income. Enterprise Resource Planning/Enterprise Asset Management (ERP/EAM) implementation project. The ERP/EAM Implementation Project went live in October 2018. In the Hawaiian Electric 2017 rate case, a settlement agreement approved by the PUC included authorization for the deferred project costs to accrue a return at 1.75% after the project went into service and until the deferred project costs are included in rate base, and for amortization of the deferred costs to not begin until the amortization expense is incorporated in rates and the unamortized deferred project costs are included in rate base. As of September 30, 2019 , the total deferred project costs and accrued carrying costs after the project went into service amounted to $59.1 million . In February 2019, the PUC approved a methodology for passing the future cost saving benefits of the new ERP/EAM system to customers developed by the Utilities in collaboration with the Consumer Advocate. The Utilities filed a benefits clarification document on June 10, 2019, reflecting $150 million in future net O&M expense reductions and cost avoidance, and $96 million in capital cost reductions and tax savings over the 12 -year service life. To the extent the reduction in O&M expense relates to amounts reflected in electric rates, the Utilities would reduce future rates for such amounts. As of September 30, 2019 , the Utilities recorded a total of $1.4 million as a regulatory liability for amounts to be returned to customers for reduction in O&M expense included in rates. On September 13, 2019, the Utilities filed their Semi-Annual Enterprise System Benefits Report for the period January 1 through June 30, 2019. In October 2019, the PUC approved the Utilities and the Consumer Advocate’s Stipulated Performance Metrics and Tracking Mechanism. West Loch PV Project. In June 2017, the PUC approved the expenditure of funds for Hawaiian Electric to build, own and operate a utility-owned, grid-tied 20 -MW (ac) solar facility on property owned by the Department of the Navy, including a proposed project cost cap of $67 million and a performance guarantee to provide energy at 9.56 cents /kWh or less to the system. In approving the project, the PUC agreed that the project is eligible for recovery of costs offset by related net benefits under the newly-established major project interim recovery (MPIR) adjustment mechanism. (See “Decoupling” section below for MPIR guidelines and cost recovery discussion.) Hawaiian Electric has provided supplemental materials, as requested by the PUC, to support meeting the MPIR guidelines, accompanied by system performance guarantee and cost savings sharing mechanisms. A decision on these matters is pending. Construction of the facility began in the second quarter of 2018, and the facility is expected to be placed in service in November 2019. Project costs incurred as of September 30, 2019 amounted to $49.3 million . 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 by merger Molokai Electric Company. Molokai Electric Company had sold its former generation site (Site) in 1983, but continued to operate at the Site under a lease until 1985. The Environmental Protection Agency (EPA) has since identified environmental impacts in the subsurface soil at the Site. In cooperation with the 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 $2.7 million as of September 30, 2019 , representing the probable and reasonably estimable cost for remediation of the Site and the Adjacent Parcel; however, final costs of remediation will depend on cleanup approach implemented. Pearl Harbor sediment study . In July 2014, the U.S. Navy notified Hawaiian Electric of the Navy’s determination that Hawaiian Electric is a Potentially Responsible Party responsible for the costs of investigation and cleanup of PCB contamination in sediment in the area offshore of the Waiau Power Plant as part of the Pearl Harbor Superfund Site. Hawaiian Electric was also required by the EPA to assess potential sources and extent of PCB contamination onshore at Waiau Power Plant. As of September 30, 2019 , the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $4.4 million . The reserve balance represents the probable and reasonably estimable cost for the onshore investigation and the remediation of PCB contamination in the offshore sediment. The final remediation costs will depend on the potential onshore source control requirements and actual offshore cleanup costs. Regulatory proceedings Decoupling . Decoupling is a regulatory model that is intended to provide the Utilities with financial stability and facilitate meeting the State of Hawaii’s goals to transition to a clean energy economy and achieve an aggressive renewable portfolio standard. The decoupling mechanism has the following major components: (1) monthly revenue balancing account (RBA) revenues or refunds for the difference between PUC-approved target revenues and recorded adjusted revenues, which delinks revenues from kilowatthour sales, (2) RAM revenues for escalation in certain O&M expenses and rate base changes, (3) MPIR component, (4) performance incentive mechanisms (PIMs), and (5) an earnings sharing mechanism, which would provide for a reduction of revenues between rate cases in the event the utility exceeds the return on average common equity (ROACE) allowed in its most recent rate case. Under the decoupling mechanism, triennial general rate cases are required. Rate adjustment mechanism . The RAM is based on the lesser of: a) an inflationary adjustment for certain O&M expenses and return on investment for certain rate base changes, or b) cumulative annual compounded increase in Gross Domestic Product Price Index applied to annualized target revenues (the RAM Cap). Annualized target revenues reset upon the issuance of an interim or final decision and order (D&O) in a rate case. Each of the Utilities’ RAM revenues was below its respective RAM Cap in 2019. The 2019 RAM also incorporated additional amortization of the regulatory liability associated with certain excess deferred taxes resulting from the 2017 Tax Cuts and Jobs Act decrease in tax rates. The reduction in the RAM revenues will be counterbalanced by the lower income tax expense and, therefore, will have no net income impact. Major project interim recovery . On April 27, 2017, the PUC issued an order that provided guidelines for interim recovery of revenues to support major projects placed in service between general rate cases. The PUC approved recovery of capital costs under the MPIR for Schofield Generating Station, which increased revenues in 2018 by $3.6 million and are being collected in customer bills beginning in June 2019. In February 2019, Hawaiian Electric submitted an MPIR filing of $19.8 million for 2019 (which accrued effective January 1, 2019) that included the 2019 return on project amount (up to the capped amount) in rate base, depreciation and incremental O&M expenses, for collection from June 2020 through May 2021. The PUC has also indicated that it intends to approve MPIR for the West Loch PV Project. Performance incentive mechanisms . The PUC has established the following PIMs: • Service Quality performance incentives are measured on a calendar-year basis. The PIM tariff requires the performance targets, deadbands and the amount of maximum financial incentives used to determine the PIM financial incentive levels for each of the PIMs to be re-determined upon issuance of an interim or final order in a general rate case for each utility. • Service Reliability Performance measured by System Average Interruption Duration and Frequency Indexes (penalties only). Target performance is based on each utility’s historical 10 -year average performance with a deadband of one standard deviation. The maximum penalty for each performance index is 20 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties of approximately $6.7 million - for both indices in total for the three utilities). • Call Center Performance measured by the percentage of calls answered within 30 seconds. Target performance is based on the annual average performance for each utility for the most recent 8 quarters with a deadband of 3% above and below the target. The maximum penalty or incentive is 8 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties or incentives of approximately $1.3 million - in total for the three utilities). • In 2018, the Utilities accrued $2.1 million in estimated penalties for service reliability net of call center performance incentives for 2018. As a result of a PUC order denying the exclusion of the impact of a specific project on the service reliability performance, in May 2019, Hawaiian Electric accrued an additional $1.3 million in service reliability penalties related to 2018. The net service quality performance penalties related to 2018 were reflected in the 2019 annual decoupling filing and will reduce customer rates in the period June 1, 2019 through May 31, 2020. • In May 2019, the Utilities filed an application for approval to, among other things, modify the measurement of performance for the System Average Interruption Duration and Frequency Indexes, adjust the PIM targets, deadbands, and financial incentive levels for each of the PIMs upon issuance of a final order in a general rate case, and adjust the call center performance PIM level for Hawaii Electric Light. • Procurement of low-cost variable renewable resources through the request for proposal process in 2018 is measured by comparison of the procurement price to target prices. The incentive is a percentage of the savings determined by comparing procured price to a target of 11.5 cents per kilowatt-hour for renewable projects with storage capability and 9.5 cents per kilowatt-hour for energy-only renewable projects. For PPAs filed by December 31, 2018 and subsequently approved by the PUC, the incentive is 20% of the savings, with a cap of $3.5 million for the three utilities in total. For PPAs filed in January, February, and March 2019 and subsequently approved by the PUC, scaled incentives are 15% , 10% and 5% , respectively, of the savings for PPAs, with a cap of $ 3 million for the three utilities in total. There are no penalties. On March 25, 2019, the PUC approved six contracts, which were filed by December 31, 2018 and qualified for incentives. A seventh contract, which was filed in February 2019 and approved in August 2019, also qualified for incentives. Half of the incentive is earned upon PUC approval of the contract and the other half is eligible to be earned in the year following the in-service date of the projects. The Utilities accrued $1.7 million in incentives in March 2019, which were reflected in the 2019 annual decoupling filing and will be recovered in rates in the period June 1, 2019 through May 31, 2020. On October 9, 2019, the PUC issued an order establishing PIMs for the Utilities with regards to the Variable Renewable Dispatchable Generation and Energy Storage requests for proposals (RFPs) as well as the Delivery of Grid Services via Customer-sited Distributed Energy Resources RFPs, that were issued on August 22, 2019 for Oahu, Maui and Hawaii island. The order establishes pricing thresholds, timelines to complete contracting, and other performance criteria for the performance incentive eligibility. The PIMs provide incentives only without penalties. The earliest the Utilities would be eligible for a PIM pursuant to this order is upon PUC approval of executed contracts resulting from the Phase 2 RFPs. The order requires contracts under the Grid Service RFP be filed for approval by May 2020, and by September 2020 under the Renewable RFPs. There is no set time period for approval. The Utilities filed a motion for reconsideration and/or clarification regarding the order on October 21, 2019, relating to certain design aspects and eligibility criteria for the PIMs. Annual decoupling filings . The net annual incremental amounts approved to be collected (refunded) from June 1, 2019 through May 31, 2020 are as follows: (in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Total 2019 Annual incremental RAM adjusted revenues, net of changes in Tax Act adjustment* $ 6.5 $ 1.1 $ 5.4 $ 13.0 Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery (12.2 ) (2.0 ) 0.8 (13.4 ) Performance Incentive Mechanisms (net) (1.3 ) — (0.4 ) (1.7 ) Net annual incremental amount to be collected (refunded) under the tariffs $ (7.0 ) $ (0.9 ) $ 5.8 $ (2.1 ) * The 2017 Tax Cuts and Jobs Act (the Tax Act) had two incremental impacts in 2019. First, the 2019 RAM calculation for all of the Utilities incorporated additional amortization of the regulatory liability associated with certain deferred taxes. Secondly, Maui Electric incorporated a $2.8 million adjustment in its 2018 annual decoupling filing related to the Tax Act which is not recurring in 2019. Performance-based regulation proceeding. On April 18, 2018, the PUC issued an order, instituting a proceeding to investigate performance-based regulation (PBR). The PUC stated that PBR seeks to utilize both revenue adjustment mechanisms and performance mechanisms to more strongly align utilities’ incentives with customer interests. The order stated that, in general, the PUC is interested in ratemaking elements and/or mechanisms that result in: • Greater cost control and reduced rate volatility; • Efficient investment and allocation of resources regardless of classification as capital or operating expense; • Fair distribution of risks between utilities and customers; and • Fulfillment of State policy goals. The proceeding has two phases. Phase 1 examined the current regulatory framework and identified those areas of utility performance that are deserving of further focus in Phase 2. In May 2019, the PUC issued an order concluding Phase 1, which established guiding principles, regulatory goals, and priority outcomes to guide the development of the PBR mechanisms in Phase 2. The PUC identified the following guiding principles, which will inform the development of the PBR framework: 1) a customer-centric approach, 2) administrative efficiency to reduce regulatory burdens; and 3) utility financial integrity to maintain the utility’s financial health. Priority goals (and priority outcomes) identified by the PUC were: enhance customer experience (affordability, reliability, interconnection experience, and customer engagement), improve utility performance (cost control, distributed energy resources (DER) asset effectiveness, and grid investment efficiency), and advance societal outcomes (capital formation, customer equity, greenhouse gas reduction, electrification of transportation, and resilience). The order also outlined the PUC’s vision of a comprehensive PBR framework that would be further developed in Phase 2. The framework envisioned would include 1) a five-year multi-year rate plan with an index-driven annual revenue adjustment based on an inflation factor, an X-factor which would encompass productivity, a Z-factor to account for exceptional circumstances not in the utility’s control and a customer dividend, 2) a symmetric earnings sharing mechanism that would help ensure that utility earnings do not excessively benefit or suffer from external factors outside of utility control or unforeseen results of regulatory mechanisms, 3) off-ramp provisions, 4) continuation of the RBA, MPIR adjustment mechanism, the pension and OPEB tracking mechanism, and other recovery mechanisms, and 5) a portfolio of performance incentive mechanisms for customer engagement and DER asset effectiveness (rewards only), and interconnection experience (both rewards and penalties), in addition to scorecards to track progress against targeted performance levels, shared savings mechanisms to apportion savings to the utility and customers, and reported metrics. The Phase 2 schedule includes working group meetings through the first half of 2020, followed by statements of positions, evidentiary hearing in October 2020 and anticipated decision in December 2020. Most recent rate proceedings. Hawaiian Electric 2020 test year rate case . On August 21, 2019, Hawaiian Electric filed an application for a general rate increase for its 2020 test year rate case, requesting an increase of $77.6 million over revenues at current effective rates (for a 4.1% increase in revenues), based on an 8% rate of return (which incorporates a ROACE of 10.5% ). In September 2019, the PUC issued an order ruling that Hawaiian Electric’s application was complete as of the date of filing. It also ordered that an outside consultant, selected by the PUC, would independently conduct a management audit of Hawaiian Electric. The PUC expects the audit to conclude in May 2020. Maui Electric consolidated 2015 and 2018 test year rate cases . On August 9, 2018, the PUC approved an interim rate increase based on a stipulated settlement, that included the effects of the 2017 Tax Act, between Maui Electric and the Consumer Advocate. On March 18, 2019, the PUC issued its D&O that approved, with certain modifications, the stipulated settlement, which addressed all issues in the rate case. Revised tariffs reflecting a final increase of $12.2 million over revenues at current effective rates based on the approved 7.43% rate of return (which incorporates a ROACE of 9.5% and a capital structure that includes a 57% common equity capitalization) on a $454 million rate base became effective on June 1, 2019. Maui Electric’s ECRC tariff, resulting in the recovery of all fuel and purchased energy through the ECRC and the removal of the recovery of these costs from base rates, became effective on September 1, 2019. The ECRC reflects a 98% / 2% fossil fuel generation cost risk-sharing split between ratepayers and Maui Electric, with an annual maximum increase or decrease to revenues to $0.6 million for the utility. Hawaii Electric Light 2019 test year rate case . On December 14, 2018, Hawaii Electric Light filed an application for a general rate increase for its 2019 test year rate case, requesting an increase of $13.4 million over revenues at current effective rates (for a 3.4% increase in revenues), based on an 8.3% rate of return (which incorporates a ROACE of 10.5% ). On September 24, 2019, Hawaii Electric Light and the Consumer Advocate (Parties) filed a Stipulated Partial Settlement Letter which documented agreements reached with the Consumer Advocate on all of the issues in the proceeding except for the ROACE, capital structure, amortization period for the state investment tax credit (ITC), and symmetric or asymmetric automatic annual target heat rate adjustment. On October 1, 2019, the Parties filed separate statements of probable entitlement, proposing the amount of interim revenue increase according to their respective proposed ROACE based on the scenario which excludes Hu Honua from the 2019 test year revenue requirement. In Hawaii Electric Light’s Statement of Probable Entitlement, the utility requested the PUC to issue an interim D&O by November 13, 2019, approving the interim rate increase of $2.79 million over revenues at current effective rates, based on a ROACE of 9.50% for interim only, an adjusted capitalization structure consisting of a 58% equity ratio, a 40 -year amortization of state ITC and the proposed tariff changes to be effective on November 21, 2019. Hawaii Electric Light requested final increase in revenues be based on a ROACE of 10.50% for its 2019 test year. Hawaii Electric Light filed rebuttal testimonies on October 9, 2019, which addressed the unresolved issues between Hawaiian Electric and the Consumer Advocate and responded to the Participants’ proposals and comments made in their direct testimonies. The evidentiary hearing is scheduled during the week of December 16, 2019. Condensed consolidating financial information. Condensed consolidating financial information for Hawaiian Electric and its subsidiaries are presented for the three and nine month periods ended September 30, 2019 and 2018 , and as of September 30, 2019 and December 31, 2018 . Hawaiian Electric unconditionally guarantees Hawaii Electric Light’s and Maui Electric’s obligations (a) to the State of Hawaii for the repayment of principal and interest on Special Purpose Revenue Bonds issued for the benefit of Hawaii Electric Light and Maui Electric, and (b) under their respective private placement note agreements and the Hawaii Electric Light notes and Maui Electric notes issued thereunder. Hawaiian Electric is also obligated, after the satisfaction of its obligations on its own preferred stock, to make dividend, redemption and liquidation payments on Hawaii Electric Light’s and Maui Electric’s preferred stock if the respective subsidiary is unable to make such payments. Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Income Three months ended September 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 491,723 93,576 103,236 — (205 ) $ 688,330 Expenses Fuel oil 139,747 21,427 37,919 — — 199,093 Purchased power 135,447 24,342 15,248 — — 175,037 Other operation and maintenance 80,582 19,868 23,965 — — 124,415 Depreciation 35,867 10,453 7,615 — — 53,935 Taxes, other than income taxes 46,433 8,359 9,265 — — 64,057 Total expenses 438,076 84,449 94,012 — — 616,537 Operating income 53,647 9,127 9,224 — (205 ) 71,793 Allowance for equity funds used during construction 2,685 229 336 — — 3,250 Equity in earnings of subsidiaries 11,048 — — — (11,048 ) — Retirement defined benefits expense—other than service costs (582 ) (105 ) (36 ) — — (723 ) Interest expense and other charges, net (12,771 ) (2,524 ) (2,339 ) — 205 (17,429 ) Allowance for borrowed funds used during construction 990 95 123 — — 1,208 Income before income taxes 55,017 6,822 7,308 — (11,048 ) 58,099 Income taxes 7,968 1,420 1,434 — — 10,822 Net income 47,049 5,402 5,874 — (11,048 ) 47,277 Preferred stock dividends of subsidiaries — 133 95 — — 228 Net income attributable to Hawaiian Electric 47,049 5,269 5,779 — (11,048 ) 47,049 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 46,779 5,269 5,779 — (11,048 ) $ 46,779 Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Comprehensive Income Three months ended September 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net income for common stock $ 46,779 5,269 5,779 — (11,048 ) $ 46,779 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 2,519 387 309 — (696 ) 2,519 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (2,493 ) (387 ) (309 ) — 696 (2,493 ) Other compreh |
Bank segment
Bank segment | 9 Months Ended |
Sep. 30, 2019 | |
Bank Subsidiary [Abstract] | |
Bank segment | Bank segment Selected financial information American Savings Bank, F.S.B. Statements of Income Data Three months ended September 30, Nine months ended September 30 (in thousands) 2019 2018 2019 2018 Interest and dividend income Interest and fees on loans $ 59,260 $ 55,885 $ 175,740 $ 163,318 Interest and dividends on investment securities 7,599 9,300 25,762 27,130 Total interest and dividend income 66,859 65,185 201,502 190,448 Interest expense Interest on deposit liabilities 4,384 3,635 12,923 9,876 Interest on other borrowings 422 404 1,361 1,293 Total interest expense 4,806 4,039 14,284 11,169 Net interest income 62,053 61,146 187,218 179,279 Provision for loan losses 3,315 6,033 17,873 12,337 Net interest income after provision for loan losses 58,738 55,113 169,345 166,942 Noninterest income Fees from other financial services 5,085 4,543 14,445 13,941 Fee income on deposit liabilities 5,320 5,454 15,402 15,781 Fee income on other financial products 1,706 1,746 5,129 5,075 Bank-owned life insurance 1,660 2,663 6,309 4,667 Mortgage banking income 1,490 169 3,080 1,399 Gains on sale of investment securities, net 653 — 653 — Other income, net 428 736 1,420 1,708 Total noninterest income 16,342 15,311 46,438 42,571 Noninterest expense Compensation and employee benefits 25,364 23,952 76,626 72,047 Occupancy 5,694 4,363 15,843 12,837 Data processing 3,763 3,583 11,353 10,587 Services 2,829 2,485 7,861 8,560 Equipment 2,163 1,783 6,416 5,385 Office supplies, printing and postage 1,297 1,556 4,320 4,554 Marketing 1,142 993 3,455 2,723 FDIC insurance (5 ) 638 1,249 2,078 Other expense 3,676 4,240 12,049 12,897 Total noninterest expense 45,923 43,593 139,172 131,668 Income before income taxes 29,157 26,831 76,611 77,845 Income taxes 6,269 5,610 15,868 17,103 Net income $ 22,888 $ 21,221 $ 60,743 $ 60,742 Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended September 30, Nine months ended September 30 (in thousands) 2019 2018 2019 2018 Interest and dividend income 66,859 65,185 $ 201,502 $ 190,448 Noninterest income 16,342 15,311 46,438 42,571 *Revenues-Bank 83,201 80,496 247,940 233,019 Total interest expense 4,806 4,039 14,284 11,169 Provision for loan losses 3,315 6,033 17,873 12,337 Noninterest expense 45,923 43,593 139,172 131,668 Less: Retirement defined benefits gain (expense)—other than service costs 196 (433 ) 276 (1,223 ) *Expenses-Bank 54,240 53,232 171,605 153,951 *Operating income-Bank 28,961 27,264 76,335 79,068 Add back: Retirement defined benefits (gain) expense—other than service costs (196 ) 433 (276 ) 1,223 Income before income taxes $ 29,157 $ 26,831 $ 76,611 $ 77,845 American Savings Bank, F.S.B. Statements of Comprehensive Income Data Three months ended September 30, Nine months ended September 30 (in thousands) 2019 2018 2019 2018 Net income $ 22,888 $ 21,221 $ 60,743 $ 60,742 Other comprehensive income (loss), net of taxes: 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) benefits of $(1,557), $1,876, $(10,194) and $8,335, respectively 4,253 (5,123 ) 27,846 (22,768 ) Reclassification adjustment for net realized gains included in net income, net of taxes of $175, nil, $175, and nil, respectively (478 ) — (478 ) — Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of (taxes) benefits of $13, $141, $(1,109) and $968, respectively 34 382 (3,032 ) 1,970 Other comprehensive income (loss), net of taxes 3,809 (4,741 ) 24,336 (20,798 ) Comprehensive income $ 26,697 $ 16,480 $ 85,079 $ 39,944 American Savings Bank, F.S.B. Balance Sheets Data (in thousands) September 30, 2019 December 31, 2018 Assets Cash and due from banks $ 135,813 $ 122,059 Interest-bearing deposits 1,315 4,225 Investment securities Available-for-sale, at fair value 1,210,748 1,388,533 Held-to-maturity, at amortized cost (fair value of $137,497 and $142,057, respectively) 132,704 141,875 Stock in Federal Home Loan Bank, at cost 9,953 9,958 Loans held for investment 5,084,336 4,843,021 Allowance for loan losses (53,040 ) (52,119 ) Net loans 5,031,296 4,790,902 Loans held for sale, at lower of cost or fair value 17,115 1,805 Other 514,116 486,347 Goodwill 82,190 82,190 Total assets $ 7,135,250 $ 7,027,894 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 1,885,028 $ 1,800,727 Deposit liabilities—interest-bearing 4,311,195 4,358,125 Other borrowings 129,190 110,040 Other 135,606 124,613 Total liabilities 6,461,019 6,393,505 Commitments and contingencies Common stock 1 1 Additional paid-in capital 348,933 347,170 Retained earnings 339,029 325,286 Accumulated other comprehensive loss, net of tax benefits Net unrealized gains (losses) on securities $ 2,945 $ (24,423 ) Retirement benefit plans (16,677 ) (13,732 ) (13,645 ) (38,068 ) Total shareholder’s equity 674,231 634,389 Total liabilities and shareholder’s equity $ 7,135,250 $ 7,027,894 Other assets Bank-owned life insurance $ 156,077 $ 151,172 Premises and equipment, net 207,659 214,415 Accrued interest receivable 19,743 20,140 Mortgage-servicing rights 8,567 8,062 Low-income housing equity investments 69,286 67,626 Real estate acquired in settlement of loans, net — 406 Real estate held for sale 9,074 — Other 43,710 24,526 $ 514,116 $ 486,347 Other liabilities Accrued expenses $ 41,264 $ 54,084 Federal and state income taxes payable 9,472 2,012 Cashier’s checks 27,498 26,906 Advance payments by borrowers 5,164 10,183 Other 52,208 31,428 $ 135,606 $ 124,613 Bank-owned life insurance is life insurance purchased by ASB on the lives of certain key employees, with ASB as the beneficiary. The insurance is used to fund employee benefits through tax-free income from increases in the cash value of the policies and insurance proceeds paid to ASB upon an insured’s death. Other borrowings consisted of securities sold under agreements to repurchase and advances from the Federal Home Loan Bank (FHLB) of $91.2 million and $38.0 million, respectively, as of September 30, 2019 and $65.0 million and $45.0 million , respectively, as of December 31, 2018 . Investment securities. The major components of investment securities were as follows: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Gross unrealized losses Less than 12 months 12 months or longer (dollars in thousands) Number of issues Fair value Amount Number of issues Fair value Amount September 30, 2019 Available-for-sale U.S. Treasury and federal agency obligations $ 126,084 $ 822 $ (198 ) $ 126,708 — $ — $ — 4 $ 32,686 $ (198 ) Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,017,256 6,647 (4,598 ) 1,019,305 12 67,163 (252 ) 85 389,212 (4,346 ) Corporate bonds 34,926 1,350 — 36,276 — — — — — — Mortgage revenue bonds 28,459 — — 28,459 — — — — — — $ 1,206,725 $ 8,819 $ (4,796 ) $ 1,210,748 12 $ 67,163 $ (252 ) 89 $ 421,898 $ (4,544 ) Held-to-maturity Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ 132,704 $ 4,793 $ — $ 137,497 — $ — $ — — $ — $ — $ 132,704 $ 4,793 $ — $ 137,497 — $ — $ — — $ — $ — December 31, 2018 Available-for-sale U.S. Treasury and federal agency obligations $ 156,694 $ 62 $ (2,407 ) $ 154,349 5 $ 25,882 $ (208 ) 19 $ 118,405 $ (2,199 ) Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,192,169 789 (31,542 ) 1,161,416 22 129,011 (1,330 ) 145 947,890 (30,212 ) Corporate bonds 49,398 103 (369 ) 49,132 6 23,175 (369 ) — — — Mortgage revenue bonds 23,636 — — 23,636 — — — — — — $ 1,421,897 $ 954 $ (34,318 ) $ 1,388,533 33 $ 178,068 $ (1,907 ) 164 $ 1,066,295 $ (32,411 ) Held-to-maturity Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ 141,875 $ 1,446 $ (1,264 ) $ 142,057 3 $ 29,814 $ (400 ) 2 $ 31,505 $ (864 ) $ 141,875 $ 1,446 $ (1,264 ) $ 142,057 3 $ 29,814 $ (400 ) 2 $ 31,505 $ (864 ) ASB does not believe that the investment securities that were in an unrealized loss position at September 30, 2019 , represent an other-than-temporary impairment (OTTI). Total gross unrealized losses were primarily attributable to change in market conditions. On a quarterly basis the investment securities are evaluated for changes in financial condition of the issuer. Based upon ASB’s evaluation, all securities held within the investment portfolio continue to be investment grade by one or more agencies. The contractual cash flows of the U.S. Treasury, federal agency obligations and agency mortgage-backed securities are backed by the full faith and credit guaranty of the United States government or an agency of the government. ASB does not intend to sell the securities before the recovery of its amortized cost basis and there have been no adverse changes in the timing of the contractual cash flows for the securities. ASB did not recognize OTTI for the quarters and nine months ended September 30, 2019 and 2018 . U.S. Treasury, federal agency obligations, corporate bonds, and mortgage revenue bonds have contractual terms to maturity. Mortgage-backed securities have contractual terms to maturity, but require periodic payments to reduce principal. In addition, expected maturities will differ from contractual maturities because borrowers have the right to prepay the underlying mortgages. The contractual maturities of investment securities were as follows: September 30, 2019 Amortized cost Fair value (in thousands) Available-for-sale Due in one year or less $ 47,046 $ 47,021 Due after one year through five years 89,085 90,675 Due after five years through ten years 37,911 38,320 Due after ten years 15,427 15,427 189,469 191,443 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,017,256 1,019,305 Total available-for-sale securities $ 1,206,725 $ 1,210,748 Held-to-maturity Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ 132,704 $ 137,497 Total held-to-maturity securities $ 132,704 $ 137,497 Proceeds from the sale of available-for-sale securities were $19.8 million for both the three and nine months ended September 30, 2019 , respectively, and nil for both the three and nine months ended September 30, 2018 , respectively. Gross realized gains and losses were $0.7 million for both the three and nine months ended September 30, 2019 , respectively, and nil for both the three and nine months ended September 30, 2018 , respectively. Loans. The components of loans were summarized as follows: September 30, 2019 December 31, 2018 (in thousands) Real estate: Residential 1-4 family $ 2,183,888 $ 2,143,397 Commercial real estate 810,971 748,398 Home equity line of credit 1,079,262 978,237 Residential land 15,095 13,138 Commercial construction 76,382 92,264 Residential construction 10,104 14,307 Total real estate 4,175,702 3,989,741 Commercial 638,213 587,891 Consumer 269,741 266,002 Total loans 5,083,656 4,843,634 Less: Deferred fees and discounts 680 (613 ) Allowance for loan losses (53,040 ) (52,119 ) Total loans, net $ 5,031,296 $ 4,790,902 ASB's policy is to require private mortgage insurance on all real estate loans when the loan-to-value ratio of the property exceeds 80% of the lower of the appraised value or purchase price at origination. For non-owner occupied residential properties, the loan-to-value ratio may not exceed 80% of the lower of the appraised value or purchase price at origination. Allowance for loan losses. The allowance for loan losses (balances and changes) and financing receivables were as follows: (in thousands) Residential 1-4 family Commercial real estate Home Residential land Commercial construction Residential construction Commercial loans Consumer loans Total Three months ended September 30, 2019 Allowance for loan losses: Beginning balance $ 2,015 $ 15,811 $ 6,881 $ 537 $ 2,046 $ 2 $ 13,073 $ 18,060 $ 58,425 Charge-offs (7 ) — (13 ) — — — (4,900 ) (5,311 ) (10,231 ) Recoveries 27 — 4 28 — — 726 746 1,531 Provision (56 ) (396 ) 135 (104 ) 196 1 (517 ) 4,056 3,315 Ending balance $ 1,979 $ 15,415 $ 7,007 $ 461 $ 2,242 $ 3 $ 8,382 $ 17,551 $ 53,040 Three months ended September 30, 2018 Allowance for loan losses: Beginning balance $ 2,939 $ 15,298 $ 7,334 $ 642 $ 4,616 $ 4 $ 10,161 $ 11,809 $ 52,803 Charge-offs — — (80 ) (1 ) — — (788 ) (4,508 ) (5,377 ) Recoveries 5 — 71 122 — — 105 365 668 Provision (623 ) (1,033 ) (347 ) (296 ) (356 ) — 1,255 7,433 6,033 Ending balance $ 2,321 $ 14,265 $ 6,978 $ 467 $ 4,260 $ 4 $ 10,733 $ 15,099 $ 54,127 Nine months ended September 30, 2019 Allowance for loan losses: Beginning balance $ 1,976 $ 14,505 $ 6,371 $ 479 $ 2,790 $ 4 $ 9,225 $ 16,769 $ 52,119 Charge-offs (26 ) — (32 ) (4 ) — — (6,012 ) (15,972 ) (22,046 ) Recoveries 644 — 13 42 — — 2,187 2,208 5,094 Provision (615 ) 910 655 (56 ) (548 ) (1 ) 2,982 14,546 17,873 Ending balance $ 1,979 $ 15,415 $ 7,007 $ 461 $ 2,242 $ 3 $ 8,382 $ 17,551 $ 53,040 September 30, 2019 Ending balance: individually evaluated for impairment $ 906 $ 7 $ 500 $ — $ — $ — $ 905 $ 504 $ 2,822 Ending balance: collectively evaluated for impairment $ 1,073 $ 15,408 $ 6,507 $ 461 $ 2,242 $ 3 $ 7,477 $ 17,047 $ 50,218 Financing Receivables: Ending balance $ 2,183,888 $ 810,971 $ 1,079,262 $ 15,095 $ 76,382 $ 10,104 $ 638,213 $ 269,741 $ 5,083,656 Ending balance: individually evaluated for impairment $ 16,556 $ 877 $ 12,909 $ 3,194 $ — $ — $ 9,370 $ 558 $ 43,464 Ending balance: collectively evaluated for impairment $ 2,167,332 $ 810,094 $ 1,066,353 $ 11,901 $ 76,382 $ 10,104 $ 628,843 $ 269,183 $ 5,040,192 Nine months ended September 30, 2018 Allowance for loan losses: Beginning balance $ 2,902 $ 15,796 $ 7,522 $ 896 $ 4,671 $ 12 $ 10,851 $ 10,987 $ 53,637 Charge-offs (31 ) — (224 ) (18 ) — — (1,930 ) (12,628 ) (14,831 ) Recoveries 73 — 98 173 — — 1,555 1,085 2,984 Provision (623 ) (1,531 ) (418 ) (584 ) (411 ) (8 ) 257 15,655 12,337 Ending balance $ 2,321 $ 14,265 $ 6,978 $ 467 $ 4,260 $ 4 $ 10,733 $ 15,099 $ 54,127 December 31, 2018 Ending balance: individually evaluated for impairment $ 876 $ 7 $ 701 $ 6 $ — $ — $ 628 $ 4 $ 2,222 Ending balance: collectively evaluated for impairment $ 1,100 $ 14,498 $ 5,670 $ 473 $ 2,790 $ 4 $ 8,597 $ 16,765 $ 49,897 Financing Receivables: Ending balance $ 2,143,397 $ 748,398 $ 978,237 $ 13,138 $ 92,264 $ 14,307 $ 587,891 $ 266,002 $ 4,843,634 Ending balance: individually evaluated for impairment $ 16,494 $ 915 $ 14,800 $ 2,059 $ — $ — $ 5,340 $ 89 $ 39,697 Ending balance: collectively evaluated for impairment $ 2,126,903 $ 747,483 $ 963,437 $ 11,079 $ 92,264 $ 14,307 $ 582,551 $ 265,913 $ 4,803,937 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 the Bank 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 internally assigned grade for loans was as follows: September 30, 2019 December 31, 2018 (in thousands) Commercial real estate Commercial construction Commercial Total Commercial real estate Commercial construction Commercial Total Grade: Pass $ 723,864 $ 74,093 $ 593,952 $ 1,391,909 $ 658,288 $ 89,974 $ 547,640 $ 1,295,902 Special mention 18,038 — 25,822 43,860 32,871 — 11,598 44,469 Substandard 69,069 2,289 14,753 86,111 57,239 2,290 28,653 88,182 Doubtful — — 3,686 3,686 — — — — Loss — — — — — — — — Total $ 810,971 $ 76,382 $ 638,213 $ 1,525,566 $ 748,398 $ 92,264 $ 587,891 $ 1,428,553 The credit risk profile based on payment activity for loans was as follows: (in thousands) 30-59 days past due 60-89 days past due Greater than 90 days Total past due Current Total financing receivables Recorded investment> 90 days and accruing September 30, 2019 Real estate: Residential 1-4 family $ 2,162 $ 807 $ 2,452 $ 5,421 $ 2,178,467 $ 2,183,888 $ — Commercial real estate 347 — — 347 810,624 810,971 — Home equity line of credit 736 814 2,127 3,677 1,075,585 1,079,262 — Residential land — — 25 25 15,070 15,095 — Commercial construction — — — — 76,382 76,382 — Residential construction — — — — 10,104 10,104 — Commercial 359 174 1,280 1,813 636,400 638,213 — Consumer 4,230 2,923 2,461 9,614 260,127 269,741 — Total loans $ 7,834 $ 4,718 $ 8,345 $ 20,897 $ 5,062,759 $ 5,083,656 $ — December 31, 2018 Real estate: Residential 1-4 family $ 3,757 $ 2,773 $ 2,339 $ 8,869 $ 2,134,528 $ 2,143,397 $ — Commercial real estate — — — — 748,398 748,398 — Home equity line of credit 1,139 681 2,720 4,540 973,697 978,237 — Residential land 9 — 319 328 12,810 13,138 — Commercial construction — — — — 92,264 92,264 — Residential construction — — — — 14,307 14,307 — Commercial 315 281 548 1,144 586,747 587,891 — Consumer 5,220 3,166 2,702 11,088 254,914 266,002 — Total loans $ 10,440 $ 6,901 $ 8,628 $ 25,969 $ 4,817,665 $ 4,843,634 $ — The credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due and troubled debt restructuring (TDR) loans was as follows: (in thousands) September 30, 2019 December 31, 2018 Real estate: Residential 1-4 family $ 12,076 $ 12,037 Commercial real estate — — Home equity line of credit 7,859 6,348 Residential land 457 436 Commercial construction — — Residential construction — — Commercial 7,004 4,278 Consumer 4,632 4,196 Total nonaccrual loans $ 32,028 $ 27,295 Real estate: Residential 1-4 family $ — $ — Commercial real estate — — Home equity line of credit — — Residential land — — Commercial construction — — Residential construction — — Commercial — — Consumer — — Total accruing loans 90 days or more past due $ — $ — Real estate: Residential 1-4 family $ 9,981 $ 10,194 Commercial real estate 877 915 Home equity line of credit 10,686 11,597 Residential land 2,737 1,622 Commercial construction — — Residential construction — — Commercial 2,564 1,527 Consumer 58 62 Total troubled debt restructured loans not included above $ 26,903 $ 25,917 The total carrying amount and the total unpaid principal balance of impaired loans were as follows: September 30, 2019 Three months ended September 30, 2019 Nine months ended September 30, 2019 (in thousands) Recorded investment Unpaid principal balance Related Allowance Average recorded investment Interest income recognized* Average recorded investment Interest income recognized* With no related allowance recorded Real estate: Residential 1-4 family $ 8,277 $ 8,877 $ — $ 8,562 $ 175 $ 8,515 $ 422 Commercial real estate — — — — — — — Home equity line of credit 1,806 1,967 — 1,797 12 2,091 78 Residential land 3,194 3,398 — 3,205 40 2,507 90 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 6,749 11,894 — 4,812 239 4,470 239 Consumer 2 2 — 21 4 27 4 $ 20,028 $ 26,138 $ — $ 18,397 $ 470 $ 17,610 $ 833 With an allowance recorded Real estate: Residential 1-4 family $ 8,279 $ 8,332 $ 906 $ 8,296 $ 86 $ 8,377 $ 265 Commercial real estate 877 877 7 881 9 894 28 Home equity line of credit 11,103 11,133 500 11,332 143 11,606 425 Residential land — — — — — 36 — Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 2,621 2,621 905 8,330 38 8,026 94 Consumer 556 556 504 556 12 301 14 $ 23,436 $ 23,519 $ 2,822 $ 29,395 $ 288 $ 29,240 $ 826 Total Real estate: Residential 1-4 family $ 16,556 $ 17,209 $ 906 $ 16,858 $ 261 $ 16,892 $ 687 Commercial real estate 877 877 7 881 9 894 28 Home equity line of credit 12,909 13,100 500 13,129 155 13,697 503 Residential land 3,194 3,398 — 3,205 40 2,543 90 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 9,370 14,515 905 13,142 277 12,496 333 Consumer 558 558 504 577 16 328 18 $ 43,464 $ 49,657 $ 2,822 $ 47,792 $ 758 $ 46,850 $ 1,659 December 31, 2018 Three months ended September 30, 2018 Nine months ended September 30, 2018 (in thousands) Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized* Average recorded investment Interest income recognized* With no related allowance recorded Real estate: Residential 1-4 family $ 7,822 $ 8,333 $ — $ 8,940 $ 239 $ 8,779 $ 396 Commercial real estate — — — — — — — Home equity line of credit 2,743 3,004 — 2,234 23 2,103 35 Residential land 2,030 2,228 — 1,773 6 1,358 16 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 3,722 4,775 — 3,915 6 3,099 26 Consumer 32 32 — 33 — 18 — $ 16,349 $ 18,372 $ — $ 16,895 $ 274 $ 15,357 $ 473 With an allowance recorded Real estate: Residential 1-4 family $ 8,672 $ 8,875 $ 876 $ 8,820 $ 84 $ 8,909 $ 274 Commercial real estate 915 915 7 985 11 997 32 Home equity line of credit 12,057 12,086 701 12,090 111 10,083 288 Residential land 29 29 6 20 — 45 3 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 1,618 1,618 628 1,774 28 1,824 94 Consumer 57 57 4 57 1 58 3 $ 23,348 $ 23,580 $ 2,222 $ 23,746 $ 235 $ 21,916 $ 694 Total Real estate: Residential 1-4 family $ 16,494 $ 17,208 $ 876 $ 17,760 $ 323 $ 17,688 $ 670 Commercial real estate 915 915 7 985 11 997 32 Home equity line of credit 14,800 15,090 701 14,324 134 12,186 323 Residential land 2,059 2,257 6 1,793 6 1,403 19 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 5,340 6,393 628 5,689 34 4,923 120 Consumer 89 89 4 90 1 76 3 $ 39,697 $ 41,952 $ 2,222 $ 40,641 $ 509 $ 37,273 $ 1,167 * Since loan was classified as impaired. Troubled debt restructurings. A loan modification is deemed to be a TDR when the borrower is determined to be experiencing financial difficulties and ASB grants a concession it would not otherwise consider. All TDR loans are classified as impaired and are segregated and reviewed separately when assessing the adequacy of the allowance for loan losses based on the appropriate method of measuring impairment: (1) present value of expected future cash flows discounted at the loan’s effective original contractual rate, (2) fair value of collateral less cost to sell or (3) observable market price. The financial impact of the calculated impairment amount is an increase to the allowance associated with the modified loan. When available information confirms that specific loans or portions thereof are uncollectible (confirmed losses), these amounts are charged off against the allowance for loan losses. Loan modifications that occurred during the third quarters and first nine months of 2019 and 2018 were as follows: Loans modified as a TDR Three months ended September 30, 2019 Nine months ended September 30, 2019 (dollars in thousands) Number of contracts Outstanding recorded (as of period end) 1 Related allowance (as of period end) Number of contracts Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Troubled debt restructurings Real estate: Residential 1-4 family 1 $ 324 $ — 10 $ 1,563 $ 165 Commercial real estate — — — — — — Home equity line of credit — — — 3 429 85 Residential land 1 350 — 3 1,169 — Commercial construction — — — — — — Residential construction — — — — — — Commercial 3 275 58 6 1,761 218 Consumer — — — — — — 5 $ 949 $ 58 22 $ 4,922 $ 468 Loans modified as a TDR Three months ended September 30, 2018 Nine months ended September 30, 2018 (dollars in thousands) Number of contracts Outstanding recorded 1 Related allowance Number of contracts Outstanding recorded (as of period end) 1 Related allowance Troubled debt restructurings Real estate: Residential 1-4 family 2 $ 427 $ 19 2 $ 427 $ 19 Commercial real estate — — — — — — Home equity line of credit 16 1,571 283 52 6,540 930 Residential land 2 1,343 — 2 1,343 — Commercial construction — — — — — — Residential construction — — — — — — Commercial 6 255 174 13 2,381 218 Consumer — — — — — — 26 $ 3,596 $ 476 69 $ 10,691 $ 1,167 1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included. There were no loans modified in TDRs that experienced a payment default of 90 days or more during the third quarter and first nine months of 2019 . Loans modified in TDRs that experienced a payment default of 90 days or more during the third quarter and first nine months of 2018 , and for which the payment of default occurred within one year of the modification, were as follows: Three months ended September 30, 2018 Nine months ended September 30, 2018 (dollars in thousands) Number of contracts Outstanding 1 Number of contracts Outstanding (as of period end) 1 TDRs that defaulted during the period within twelve months of their modification date Real estate: Residential 1-4 family — $ — — $ — Commercial real estate — — — — Home equity line of credit — — 1 81 Residential land — — — — Commercial construction — — — — Residential construction — — — — Commercial — — 1 291 Consumer — — — — — $ — 2 $ 372 1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included. If loans modified in a TDR subsequently default, ASB evaluates the loan for further impairment. Based on its evaluation, adjustments may be made in the allocation of the allowance or partial charge-offs may be taken to further write-down the carrying value of the loan. Commitments to lend additional funds to borrowers whose loan terms have been modified in a TDR totaled nil at September 30, 2019 and December 31, 2018 . The Company had $4.3 million and $4.2 million of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure at September 30, 2019 and December 31, 2018 , 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 $87.8 million and $31.9 million for three months ended September 30, 2019 and 2018, respectively, and $177.3 million and $109.3 million for the nine months ended September 30, 2019 and 2018 , respectively, and recognized gains on such sales of $1.5 million and $0.2 million for the three months ended September 30, 2019 and 2018, respectively, and $3.1 million and $1.4 million for the nine months ended September 30, 2019 and 2018, respectively. There were no repurchased mortgage loans for the three and nine months ended September 30, 2019 and 2018 . The repurchase reserve was $0.1 million as of September 30, 2019 and 2018 . Mortgage servicing fees, a component of other income, net, were $0.8 million and $0.7 million for the three months ended September 30, 2019 and 2018 , respectively, and were $2.2 million for the nine months ended September 30, 2019 and 2018 , respectively. Changes in the carrying value of MSRs were as follows: (in thousands) Gross Accumulated amortization Valuation allowance Net September 30, 2019 $ 20,413 $ (11,846 ) $ — $ 8,567 December 31, 2018 18,556 (10,494 ) — 8,062 Changes related to MSRs were as follows: Three months ended September 30, Nine months ended September 30 (in thousands) 2019 2018 2019 2018 Mortgage servicing rights Beginning balance $ 8,103 $ 8,509 $ 8,062 $ 8,639 Amount capitalized 995 305 1,857 1,032 Amortization (531 ) (388 ) (1,352 ) (1,245 ) Other-than-temporary impairment — — — — Carrying amount before valuation allowance 8,567 8,426 8,567 8,426 Valuation allowance for mortgage servicing rights Beginning balance — — — — Provision (recovery) — — — — Other-than-temporary impairment — — — — Ending balance — — — — Net carrying value of mortgage servicing rights $ 8,567 $ 8,426 $ 8,567 $ 8,426 ASB capitalizes MSRs acquired upon the sale of mortgage loans with servicing rights retained. On a monthly basis, ASB compares the net carrying value of the MSRs to its fair value to determine if there are any changes to the valuation allowance and/or other-than-temporary impairment for the MSRs. ASB uses a present value cash flow model to estimate the fair value of MSRs. Impairment is recognized through a valuation allowance for each stratum when the carrying amount exceeds fair value, with any associated provision recorded as a component of loan servicing fees included in “Revenues - bank” in the consolidated statements of income. A direct write-down is recorded when the recoverability of the valuation allowance is deemed to be unrecoverable. Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows: (dollars in thousands) September 30, 2019 December 31, 2018 Unpaid principal balance $ 1,232,240 $ 1,188,514 Weighted average note rate 3.99 % 3.98 % Weighted average discount rate 9.3 % 10.0 % Weighted average prepayment speed 12.8 % 6.5 % The sensitivity analysis of fair value of MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows: (dollars in thousands) September 30, 2019 December 31, 2018 Prepayment rate: 25 basis points adverse rate change $ (1,058 ) $ (250 ) 50 basis points adverse rate change (2,093 ) (566 ) Discount rate: 25 basis points adverse rate change (90 ) (139 ) 50 basis points adverse rate change (180 ) (275 ) The effect of a variation in certain assumptions on fair value is calculated without changing any other assumptions. This analysis typically cannot be extrapolated because the relationship of a change in one key assumption to the changes in the fair value of MSRs typically is not linear. Other borrowings. As of September 30, 2019 , ASB had $38.0 million FHLB advances outstanding. ASB was in compliance with all Advances, Pledge and Security Agreement requirements as of September 30, 2019 . Securities sold under agreements to repurchase are accounted for as financing transactions and the obligations to repurchase these securities are recorded as liabilities in the condensed consolidated balance sheets. ASB pledges investment securities as collateral for securities sold under agreements to repurchase. All such agreements are subject to master netting arrangements, which provide for a conditional right of set-off in case of default by either party; however, ASB presents securities sold under agreements to repurchase on a gross basis in the balance sheet. The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties: (in millions) Gross amount of recognized liabil |
Credit agreements
Credit agreements | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Credit agreements | Credit agreements HEI and Hawaiian Electric each entered into a separate agreement with a syndicate of eight financial institutions (the HEI Facility and Hawaiian Electric Facility, respectively, and together, the Credit Facilities), effective July 3, 2017, to amend and restate their respective previously existing revolving unsecured credit agreements. The $150 million HEI Facility and $200 million Hawaiian Electric Facility both terminate on June 30, 2022. As of September 30, 2019 and December 31, 2018 , no amounts were outstanding under the Credit Facilities. The Credit Facilities will be maintained to support each company’s respective short-term commercial paper program, but may be drawn on to meet each company’s respective working capital needs and general corporate purposes. Changes in long-term debt. On May 13, 2019, the Utilities issued, through a private placement pursuant to separate Note Purchase Agreements (the Note Purchase Agreements), the following unsecured notes bearing taxable interest (the Unsecured Notes): Series 2019A Aggregate principal amount $50 million Fixed coupon interest rate 4.21% Maturity date May 15, 2034 Principal amount by company: Hawaiian Electric $30 million Hawaii Electric Light $10 million Maui Electric $10 million The Unsecured Notes include substantially the same financial covenants and customary conditions as Hawaiian Electric’s credit agreement. Hawaiian Electric is also a party as guarantor under the Note Purchase Agreements entered into by Hawaii Electric Light and Maui Electric. The Unsecured Notes may be prepaid in whole or in part at any time at the prepayment price of the principal amount plus a “Make-Whole Amount,” as defined in the Note Purchase Agreements. On May 15, 2019, proceeds from the sale were applied to redeem the Utilities’ 2004 junior subordinated deferrable interest debentures at par value: 2004 Junior subordinated deferrable interest debentures redeemed Aggregate principal amount $51.5 million Fixed coupon interest rate 6.50% Maturity date May 15, 2034 Principal amount by company: Hawaiian Electric $31.5 million Hawaii Electric Light $10 million Maui Electric $10 million On July 18, 2019, the Department of Budget and Finance of the State of Hawaii (DBF) for the benefit of Hawaiian Electric and Hawaii Electric Light, issued, at par: Refunding Series 2019 Special Purpose Revenue Bonds Aggregate principal amount $150 million Fixed coupon interest rate 3.20% Maturity date July 1, 2039 DBF loaned the proceeds to: Hawaiian Electric $90 million Hawaii Electric Light $60 million On July 26, 2019, proceeds from the sale were applied to redeem at par, bonds previously issued by the DBF for the benefit of Hawaiian Electric and Hawaii Electric Light: Series 2009 Special Purpose Revenue Bonds Redeemed Aggregate principal amount $150 million Fixed coupon interest rate 6.50% Maturity date July 1, 2039 Principal amount by company: Hawaiian Electric $90 million Hawaii Electric Light $60 million On October 10, 2019, the DBF for the benefit of Hawaiian Electric, Hawaii Electric Light and Maui Electric, issued, at par: Series 2019 Special Purpose Revenue Bonds Aggregate principal amount $80 million Fixed coupon interest rate 3.50% Maturity date October 1, 2049 DBF loaned the proceeds to: Hawaiian Electric $70 million Hawaii Electric Light $2.5 million Maui Electric $7.5 million Proceeds will be used to finance capital expenditures, including reimbursements to the Companies for previously incurred capital expenditures. For Series 2019 Special Purpose Revenue Bonds (SPRBs), funds on deposit with trustee represent the undrawn proceeds from the issuance of the SPRBs and earn interest at market rates. These funds are available only to pay (or to reimburse) the Utilities for their capital expenditures. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company adopted ASU No. 2016-02 and related amendments on January 1, 2019, and used the effective date as the date of initial application. The Company elected the practical expedient package under which the Company did not reassess its prior conclusions about whether any expired or existing contracts are or contain leases, whether there is a change in lease classification for any expired or existing leases under the new standard, or whether there were initial direct costs for any existing leases that would be treated differently under the new standard. The Company elected the short-term lease recognition exemption for all of its leases that qualify, and accordingly, does not recognize lease liabilities and ROU assets for all leases that have lease terms that are 12 months or less. The amounts related to short-term leases are not material. The Company elected the practical expedient to not separate lease and non-lease components for its real estate and equipment and fossil fuel and renewable energy PPAs . The Company elected the practical expedient to not assess all existing land easements that were not previously accounted for in accordance with ASC 840. The Company leases certain real estate and equipment for various terms under long-term operating lease agreements. The agreements expire at various dates through 2054 and provide for renewal options up to 10 years . The periods associated with the renewal options are excluded for the purpose of determining the lease term unless the exercise of the renewable option is reasonably certain. In the normal course of business, it is expected that many of these agreements will be replaced by similar agreements. Certain real estate leases require the Company to pay for operating expenses such as common area maintenance, real estate taxes and insurance. Additionally, the Utilities contract with independent power producers to supply energy under long-term power purchase agreements. Certain PPAs are treated as operating leases under the new standard because the Company elected the practical expedient package under which prior conclusions about lease identification were not reassessed. PPAs generally include variable lease payments (e.g., payments based on kWh), and several as-available PPAs have variable-only payment terms. For PPAs with no minimum lease payments, the Utilities do not recognize any lease liabilities or ROU assets, and the related costs are reported as variable lease costs. In August 2019, Hawaiian Electric entered into a lease agreement for a total office space of approximately 195,000 square feet in downtown Honolulu to lower costs and bring together office workers in separate leased buildings. The lease consists of two different phases with expected commencement dates of January 2020 and January 2021, respectively, and is an operating lease for a term of 12 years with various options to extend up to 10 years. Annual rent expense for each phase will be approximately $1.9 million and $1.7 million , respectively. The Utilities’ lease payments for each operating lease agreement were discounted using its estimated unsecured borrowing rates for the appropriate term, reduced for the estimated impact of collateral. ASB’s lease payments for each operating lease agreement were discounted using Federal Home Loan Bank of Des Moines (FHLB) fixed rate advance rates, which are collateralized, for the appropriate term. The FHLB is the bank’s primary wholesale funding source and can provide borrowing rates for various terms starting at overnight borrowings to 30-year borrowing terms. Amounts related to the Company’s total lease cost and cash flows arising from lease transaction are as follows: HEI consolidated Hawaiian Electric consolidated Three months ended September 30, 2019 (in thousands) Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total Operating lease cost $ 2,892 $ 15,478 $ 18,370 $ 1,542 $ 15,478 $ 17,020 Variable lease cost 3,577 57,912 61,489 2,836 57,912 60,748 Total lease cost $ 6,469 $ 73,390 $ 79,859 $ 4,378 $ 73,390 $ 77,768 Other information Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases $ 2,687 $ 16,795 $ 19,482 $ 1,455 $ 16,795 $ 18,250 HEI consolidated Hawaiian Electric consolidated Nine months ended September 30, 2019 Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total Operating lease cost $ 8,632 $ 46,434 $ 55,066 $ 4,551 $ 46,434 $ 50,985 Variable lease cost 9,777 143,177 152,954 7,686 143,177 150,863 Total lease cost $ 18,409 $ 189,611 $ 208,020 $ 12,237 $ 189,611 $ 201,848 Other information Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases $ 7,867 $ 46,162 $ 54,029 $ 4,263 $ 46,162 $ 50,425 Weighted-average remaining lease term—operating leases (in years) 6.5 3.0 3.7 4.7 3.0 3.2 Weighted-average discount rate—operating leases 3.55 % 4.08 % 3.98 % 4.17 % 4.08 % 4.09 % The following table summarizes the maturity of our operating lease liabilities as of September 30, 2019 : HEI consolidated Hawaiian Electric consolidated (in millions) Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total 2019 (remaining months) $ 3 $ 17 $ 20 $ 2 $ 17 $ 19 2020 11 63 74 6 63 69 2021 9 63 72 5 63 68 2022 6 42 48 2 42 44 2023 4 — 4 2 — 2 2024 3 — 3 1 — 1 Thereafter 9 — 9 2 — 2 Total lease payments 45 185 230 20 185 205 Less: Imputed interest (6 ) (11 ) (17 ) (2 ) (11 ) (13 ) Total present value of lease payments $ 39 $ 174 $ 213 $ 18 $ 174 $ 192 The future minimum lease obligations under operating leases in effect as of December 31, 2018, having a term in excess of one year as determined prior to the adoption of ASC 842 are as follows: HEI consolidated Hawaiian Electric consolidated (in millions) Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total 2019 $ 11 $ 63 $ 74 $ 6 $ 63 $ 69 2020 9 63 72 6 63 69 2021 8 63 71 5 63 68 2022 5 42 47 2 42 44 2023 4 — 4 2 — 2 Thereafter 12 — 12 3 — 3 Total lease payments $ 49 $ 231 $ 280 $ 24 $ 231 $ 255 |
Shareholders' equity
Shareholders' equity | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 $ (24,423 ) $ (436 ) $ (25,751 ) $ (50,610 ) $ 99 Current period other comprehensive income (loss) 27,368 (1,663 ) 532 26,237 73 Balance, September 30, 2019 $ 2,945 $ (2,099 ) $ (25,219 ) $ (24,373 ) $ 172 Balance, December 31, 2017 $ (14,951 ) $ — $ (26,990 ) $ (41,941 ) $ (1,219 ) Current period other comprehensive income (loss) (22,768 ) — 1,581 (21,187 ) 85 Balance, September 30, 2018 $ (37,719 ) $ — $ (25,409 ) $ (63,128 ) $ (1,134 ) Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Three months ended September 30 Nine months ended September 30 Affected line item in the (in thousands) 2019 2018 2019 2018 Statements of Income / Balance Sheets HEI consolidated Net realized gains on securities included in net income $ (478 ) $ — $ (478 ) $ — Revenues-bank (gains on sale of investment securities, net) Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 2,615 5,259 7,621 15,755 See Note 9 for additional details Impact of D&Os of the PUC included in regulatory assets (2,493 ) (4,725 ) (7,089 ) (14,174 ) See Note 9 for additional details Total reclassifications $ (356 ) $ 534 $ 54 $ 1,581 Hawaiian Electric consolidated Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost $ 2,519 $ 4,753 $ 7,162 $ 14,259 See Note 9 for additional details Impact of D&Os of the PUC included in regulatory assets (2,493 ) (4,725 ) (7,089 ) (14,174 ) See Note 9 for additional details Total reclassifications $ 26 $ 28 $ 73 $ 85 |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenue from contracts with customers. The following tables disaggregate revenues by major source, timing of revenue recognition, and segment: Three months ended September 30, 2019 Nine months ended September 30, 2019 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 230,051 $ — $ — $ 230,051 $ 601,664 $ — $ — $ 601,664 Electric energy sales - commercial 230,411 — — 230,411 635,097 — — 635,097 Electric energy sales - large light and power 248,457 — — 248,457 679,252 — — 679,252 Electric energy sales - other 4,081 — — 4,081 11,933 — — 11,933 Bank fees — 12,111 — 12,111 — 34,976 — 34,976 Total revenues from contracts with customers 713,000 12,111 — 725,111 1,927,946 34,976 — 1,962,922 Revenues from other sources Regulatory revenue (30,800 ) — — (30,800 ) (44,953 ) — — (44,953 ) Bank interest and dividend income — 66,859 — 66,859 — 201,502 — 201,502 Other bank noninterest income — 4,231 — 4,231 — 11,462 — 11,462 Other 6,130 — 4 6,134 17,616 — 86 17,702 Total revenues from other sources (24,670 ) 71,090 4 46,424 (27,337 ) 212,964 86 185,713 Total revenues $ 688,330 $ 83,201 $ 4 $ 771,535 $ 1,900,609 $ 247,940 $ 86 $ 2,148,635 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 12,111 $ — $ 12,111 $ — $ 34,976 $ — $ 34,976 Services/goods transferred over time 713,000 — — 713,000 1,927,946 — — 1,927,946 Total revenues from contracts with customers $ 713,000 $ 12,111 $ — $ 725,111 $ 1,927,946 $ 34,976 $ — $ 1,962,922 Three months ended September 30, 2018 Nine months ended September 30, 2018 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 222,196 $ — $ — $ 222,196 $ 586,002 $ — $ — $ 586,002 Electric energy sales - commercial 229,476 — — 229,476 624,643 — — 624,643 Electric energy sales - large light and power 242,457 — — 242,457 649,454 — — 649,454 Electric energy sales - other 4,296 — — 4,296 12,324 — — 12,324 Bank fees — 11,743 — 11,743 — 34,797 — 34,797 Total revenues from contracts with customers 698,425 11,743 — 710,168 1,872,423 34,797 — 1,907,220 Revenues from other sources Regulatory revenue (13,572 ) — — (13,572 ) (13,465 ) — — (13,465 ) Bank interest and dividend income — 65,185 — 65,185 — 190,448 — 190,448 Other bank noninterest income — 3,568 — 3,568 — 7,774 — 7,774 Other 2,556 — 143 2,699 7,004 — 218 7,222 Total revenues from other sources (11,016 ) 68,753 143 57,880 (6,461 ) 198,222 218 191,979 Total revenues $ 687,409 $ 80,496 $ 143 $ 768,048 $ 1,865,962 $ 233,019 $ 218 $ 2,099,199 Timing of revenue recognition Services/goods transferred at a point in time $ 832 $ 11,743 $ — $ 12,575 $ 2,380 $ 34,797 $ — $ 37,177 Services/goods transferred over time 697,593 — — 697,593 1,870,043 — — 1,870,043 Total revenues from contracts with customers $ 698,425 $ 11,743 $ — $ 710,168 $ 1,872,423 $ 34,797 $ — $ 1,907,220 There are no material contract assets or liabilities associated with revenues from contracts with customers existing at the beginning of the period or as of September 30, 2019 . Accounts receivable and unbilled revenues related to contracts with customers represent an unconditional right to consideration since all performance obligations have been satisfied. These amounts are disclosed as accounts receivable and unbilled revenues, net on HEI’s condensed consolidated balance sheets and customer accounts receivable, net and accrued unbilled revenues, net on Hawaiian Electric’s condensed consolidated balance sheets. As of September 30, 2019 , the Company had no material remaining performance obligations due to the nature of the Company’s contracts with its customers. For the Utilities, performance obligations are fulfilled as electricity is delivered to customers. For ASB, fees are recognized when a transaction is completed. |
Retirement benefits
Retirement benefits | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Retirement benefits | Retirement benefits Defined benefit pension and other postretirement benefit plans information. For the first nine months of 2019 , the Company contributed $36 million ( $36 million by the Utilities) to its pension and other postretirement benefit plans, compared to $38 million ( $37 million by the Utilities) in the first nine months of 2018 . The Company’s current estimate of total contributions to its pension and other postretirement benefit plans in 2019 is $49 million ( $48 million by the Utilities, $ 1 million by HEI and nil by ASB), compared to $39 million ($ 38 million by the Utilities, $1 million by HEI and nil by ASB) in 2018 . In addition, the Company expects to pay directly $3 million ( $2 million by the Utilities) of benefits in 2019 , compared to $2 million ( $1 million by the Utilities) paid in 2018 . The components of net periodic pension costs (NPPC) and net periodic benefit costs (NPBC) for HEI consolidated and Hawaiian Electric consolidated were as follows: Three months ended September 30 Nine months ended September 30 Pension benefits Other benefits Pension benefits Other benefits (in thousands) 2019 2018 2019 2018 2019 2018 2019 2018 HEI consolidated Service cost $ 15,800 $ 17,223 $ 573 $ 680 $ 46,564 $ 51,764 $ 1,656 $ 2,041 Interest cost 21,150 19,340 2,006 1,986 63,216 58,033 6,000 5,947 Expected return on plan assets (27,991 ) (27,237 ) (3,101 ) (3,224 ) (83,988 ) (81,715 ) (9,273 ) (9,683 ) Amortization of net prior service gain (10 ) (11 ) (451 ) (451 ) (32 ) (32 ) (1,355 ) (1,354 ) Amortization of net actuarial (gains) losses 3,989 7,527 (3 ) 25 11,667 22,556 (10 ) 71 Net periodic pension/benefit cost (return) 12,938 16,842 (976 ) (984 ) 37,427 50,606 (2,982 ) (2,978 ) Impact of PUC D&Os 11,554 7,785 821 953 36,111 17,621 2,443 3,048 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 24,492 $ 24,627 $ (155 ) $ (31 ) $ 73,538 $ 68,227 $ (539 ) $ 70 Hawaiian Electric consolidated Service cost $ 15,344 $ 16,840 $ 568 $ 676 $ 45,346 $ 50,520 $ 1,643 $ 2,028 Interest cost 19,560 17,824 1,920 1,907 58,388 53,471 5,755 5,721 Expected return on plan assets (26,146 ) (25,593 ) (3,064 ) (3,178 ) (78,474 ) (76,777 ) (9,135 ) (9,534 ) Amortization of net prior service (gain) cost 2 2 (451 ) (451 ) 6 6 (1,353 ) (1,353 ) Amortization of net actuarial loss 3,841 6,826 — 25 10,993 20,477 — 74 Net periodic pension/benefit cost (return) 12,601 15,899 (1,027 ) (1,021 ) 36,259 47,697 (3,090 ) (3,064 ) Impact of PUC D&Os 11,554 7,785 821 953 36,111 17,621 2,443 3,048 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 24,155 $ 23,684 $ (206 ) $ (68 ) $ 72,370 $ 65,318 $ (647 ) $ (16 ) HEI consolidated recorded retirement benefits expense of $44 million ($ 43 million by the Utilities) and $43 million ( $40 million by the Utilities) in the first nine months of 2019 and 2018 , respectively, 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, these retirement benefit costs that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will be amortized over 5 years beginning with the issuance of the PUC’s D&O in the respective utility’s next rate case. Defined contribution plans information. For the first nine months of 2019 and 2018 , the Company’s expenses for its defined contribution pension plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan were $5.1 million and $4.8 million , respectively, and cash contributions were $6.0 million and $5.9 million , respectively. For the first nine months of 2019 and 2018 , the Utilities’ expenses for its defined contribution pension plan under the HEIRSP were $ 1.9 million and $1.7 million , respectively, and cash contributions were $ 1.9 million and $1.7 million , respectively. |
Share-based compensation
Share-based compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation | Share-based compensation Under the 2010 Equity and Incentive Plan, as amended, HEI can issue shares of common stock as incentive compensation to selected employees in the form of stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares and other share-based and cash-based awards. The 2010 Equity and Incentive Plan (original EIP) was amended and restated effective March 1, 2014 (EIP) and an additional 1.5 million shares were added to the shares available for issuance under these programs. As of September 30, 2019 , approximately 3.2 million shares remained available for future issuance under the terms of the EIP, assuming recycling of shares withheld to satisfy minimum statutory tax liabilities relating to EIP awards, including an estimated 0.8 million shares that could be issued upon the vesting of outstanding restricted stock units and the achievement of performance goals for awards outstanding under long-term incentive plans (assuming that such performance goals are achieved at maximum levels). Under the 2011 Nonemployee Director Stock Plan (2011 Director Plan), HEI can issue shares of common stock as compensation to nonemployee directors of HEI, Hawaiian Electric and ASB. On June 26, 2019, an additional 300,000 shares were made available for issuance under the 2011 Director Plan. As of September 30, 2019 , there were 311,027 shares remaining available for future issuance under the 2011 Director Plan. Share-based compensation expense and the related income tax benefit were as follows: Three months ended September 30 Nine months ended September 30 (in millions) 2019 2018 2019 2018 HEI consolidated Share-based compensation expense 1 $ 2.3 $ 1.5 $ 8.1 $ 5.9 Income tax benefit 0.3 0.2 1.2 0.9 Hawaiian Electric consolidated Share-based compensation expense 1 0.8 0.6 2.6 2.1 Income tax benefit 0.1 0.1 0.5 0.4 1 For the three and nine months ended September 30, 2019 and 2018, the Company has not capitalized any share-based compensation. Stock awards. HEI granted HEI common stock to nonemployee directors under the 2011 Director Plan as follows: Three months ended September 30 Nine months ended September 30 (dollars in millions) 2019 2018 2019 2018 Shares granted — — 35,580 38,821 Fair value $ — $ — $ 1.5 $ 1.3 Income tax benefit — — 0.4 0.3 The number of shares issued to each nonemployee director of HEI, Hawaiian Electric and ASB is determined based on the closing price of HEI Common Stock on the grant date. Restricted stock units. Information about HEI’s grants of restricted stock units was as follows: Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 208,625 $ 35.28 200,856 $ 33.03 200,358 $ 33.05 197,047 $ 31.53 Granted 1,006 44.16 1,789 35.61 95,565 37.75 93,853 34.12 Vested (101 ) 36.27 — — (76,813 ) 32.61 (75,683 ) 30.56 Forfeited (2,889 ) 35.44 (2,287 ) 32.83 (12,469 ) 34.20 (14,859 ) 32.35 Outstanding, end of period 206,641 $ 35.32 200,358 $ 33.05 206,641 $ 35.32 200,358 $ 33.05 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ 0.1 $ 3.6 $ 3.2 (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 first nine months of 2019 and 2018 , total restricted stock units and related dividends that vested had a fair value of $3.2 million and $2.7 million , respectively, and the related tax benefits were $0.5 million and $0.4 million , respectively. As of September 30, 2019 , there was $5.4 million of total unrecognized compensation cost related to the nonvested restricted stock units. The cost is expected to be recognized over a weighted-average period of 2.7 years . Long-term incentive plan payable in stock. The 2017-2019, 2018-2020 and 2019-2021 long-term incentive plans (LTIP) provide for performance awards under the EIP of shares of HEI common stock based on the satisfaction of performance goals, including a market condition goal. The number of shares of HEI common stock that may be awarded is fixed on the date the grants are made, subject to the achievement of specified performance levels and calculated dividend equivalents. The potential payout varies from 0% to 200% of the number of target shares, depending on the achievement of the goals. The market condition goal is based on HEI’s total shareholder return (TSR) compared to the Edison Electric Institute Index over the relevant three -year period. The other performance condition goals relate to earnings per share (EPS) growth, return on average common equity, Hawaiian Electric’s net income and ASB’s efficiency ratio. LTIP linked to TSR . Information about HEI’s LTIP grants linked to TSR was as follows: Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 98,311 $ 39.61 66,177 $ 38.82 65,578 $ 38.81 32,904 $ 39.51 Granted 568 41.07 878 38.20 35,215 41.07 37,819 38.21 Vested (issued or unissued and cancelled) — — — — — — — — Forfeited (2,477 ) 39.64 (1,490 ) 38.85 (4,391 ) 39.19 (5,158 ) 38.84 Outstanding, end of period 96,402 $ 39.62 65,565 $ 38.81 96,402 $ 39.62 65,565 $ 38.81 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ — $ 1.4 $ 1.4 (1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. The grant date fair values of the shares were determined using a Monte Carlo simulation model utilizing actual information for the common shares of HEI and its peers for the period from the beginning of the performance period to the grant date and estimated future stock volatility and dividends of HEI and its peers over the remaining three -year performance period. The expected stock volatility assumptions for HEI and its peer group were based on the three -year historic stock volatility, and the annual dividend yield assumptions were based on dividend yields calculated on the basis of daily stock prices over the same three -year historical period. 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: 2019 2018 Risk-free interest rate 2.48 % 2.29 % Expected life in years 3 3 Expected volatility 15.8 % 17.0 % Range of expected volatility for Peer Group 15.0% to 73.2% 15.1% to 26.2% Grant date fair value (per share) $41.07 $38.20 As of September 30, 2019 , there was $1.7 million of total unrecognized compensation cost related to the nonvested performance awards payable in shares linked to TSR. The cost is expected to be recognized over a weighted-average period of 1.3 years . LTIP awards linked to other performance conditions . Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 407,090 $ 35.12 264,707 $ 33.79 276,169 $ 33.80 131,616 $ 33.47 Granted 2,275 44.05 3,511 35.58 140,855 37.78 151,277 34.12 Vested — — — — — — — — Increase above target 11,131 33.49 — — 11,131 33.49 — — Forfeited (9,911 ) 35.24 (5,958 ) 33.80 (17,570 ) 34.66 (20,633 ) 33.80 Outstanding, end of period 410,585 $ 35.12 262,260 $ 33.82 410,585 $ 35.12 262,260 $ 33.82 Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) $ 0.1 $ 0.1 $ 5.3 $ 5.2 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. As of September 30, 2019 , there was $6.1 million of total unrecognized compensation cost related to the nonvested shares linked to performance conditions other than TSR. The cost is expected to be recognized over a weighted-average period of 1.2 years . |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Company’s and the Utilities’ effective tax rates (combined federal and state income tax rates) were 19% and 20% , respectively, for the nine months ended September 30, 2019 . These rates differed from the combined statutory rates, due primarily to the Utilities’ amortization of excess deferred income taxes related to the provision in the Tax Act that lowered the federal income tax rate from 35% to 21% , the non-taxability of the bank-owned life insurance income and the tax benefits derived from the low income housing tax credit investments. The Company’s and the Utilities’ effective tax rates were both 19% for the nine months ended September 30, 2018 . |
Cash flows
Cash flows | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash flows | Cash flows Nine months ended September 30 2019 2018 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates, net of amounts capitalized $ 75 $ 67 Income taxes paid (including refundable credits) 55 50 Income taxes refunded (including refundable credits) 4 — Hawaiian Electric consolidated Interest paid to non-affiliates 45 44 Income taxes paid (including refundable credits) 55 47 Income taxes refunded (including refundable credits) 4 — Supplemental disclosures of noncash activities HEI consolidated Property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 7 6 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 37 42 Common stock issued (gross) for director and executive/management compensation (financing) 1 5 4 Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) 9 — Obligations to fund low income housing investments (investing) 6 12 Transfer of retail repurchase agreements to deposit liabilities (financing) — 102 Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 7 6 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 34 28 1 The amounts shown represent the market value of common stock issued for director and executive/management compensation and withheld to satisfy statutory tax liabilities. |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements Fair value measurement and disclosure valuation methodology. The following are descriptions of the valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial instruments not carried at fair value: Short-term borrowings—other than bank . The carrying amount of short-term borrowings approximated fair value because of the short maturity of these instruments. Investment securities . The fair value of ASB’s investment securities is determined quarterly through pricing obtained from independent third-party pricing services or from brokers not affiliated with the trade. Non-binding broker quotes are infrequent and generally occur for new securities that are settled close to the month-end pricing date. The third-party pricing vendors ASB uses for pricing its securities are reputable firms that provide pricing services on a global basis and have processes in place to ensure quality and control. The third-party pricing services use a variety of methods to determine the fair value of securities that fall under Level 2 of ASB’s fair value measurement hierarchy. Among the considerations are quoted prices for similar securities in an active market, yield spreads for similar trades, adjustments for liquidity, size, collateral characteristics, historic and generic prepayment speeds, and other observable market factors. To enhance the robustness of the pricing process, ASB will on a quarterly basis compare its standard third-party vendor’s price with that of another third-party vendor. If the prices are within an acceptable tolerance range, the price of the standard vendor will be accepted. If the variance is beyond the tolerance range, an evaluation will be conducted by ASB and a challenge to the price may be made. Fair value in such cases will be based on the value that best reflects the data and observable characteristics of the security. In all cases, the fair value used will have been independently determined by a third-party pricing vendor or non-affiliated broker. The fair value of the mortgage revenue bonds is estimated using a discounted cash flow model to calculate the present value of future principal and interest payments and, therefore is classified within Level 3 of the valuation hierarchy. Loans held for sale . Residential and commercial loans are carried at the lower of cost or market and are valued using market observable pricing inputs, which are derived from third party loan sales and, therefore, are classified within Level 2 of the valuation hierarchy. Loans held for investment . Fair value of loans held for investment is derived using a discounted cash flow approach which includes an evaluation of the underlying loan characteristics. The valuation model uses loan characteristics which includes product type, maturity dates and the underlying interest rate of the portfolio. This information is input into the valuation models along with various forecast valuation assumptions including prepayment forecasts, to determine the discount rate. These assumptions are derived from internal and third party sources. Since the valuation is derived from model-based techniques, ASB includes loans held for investment within Level 3 of the valuation hierarchy. Impaired loans . At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Fair value is determined primarily by using an income, cost or market approach and is normally provided through appraisals. Impaired loans carried at fair value generally receive specific allocations within the allowance for loan losses. For collateral-dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Generally, impaired loans are evaluated quarterly for additional impairment and adjusted accordingly. Real estate acquired in settlement of loans . Foreclosed assets are carried at fair value (less estimated costs to sell) and are generally based upon appraisals or independent market prices that are periodically updated subsequent to classification as real estate owned. Such adjustments typically result in a Level 3 classification of the inputs for determining fair value. ASB estimates the fair value of collateral-dependent loans and real estate owned using the sales comparison approach. Mortgage servicing rights . MSRs are capitalized at fair value based on market data at the time of sale and accounted for in subsequent periods at the lower of amortized cost or fair value. MSRs are evaluated for impairment at each reporting date. ASB's MSRs are stratified based on predominant risk characteristics of the underlying loans including loan type and note rate. For each stratum, fair value is calculated by discounting expected net income streams using discount rates that reflect industry pricing for similar assets. Expected net income streams are estimated based on industry assumptions regarding prepayment expectations and income and expenses associated with servicing residential mortgage loans for others. Impairment is recognized through a valuation allowance for each stratum when the carrying amount exceeds fair value, with any associated provision recorded as a component of loan servicing fees included in "Revenues - bank" in the consolidated statements of income. A direct write-down is recorded when the recoverability of the valuation allowance is deemed to be unrecoverable. ASB compares the fair value of MSRs to an estimated value calculated by an independent third-party. The third-party relies on both published and unpublished sources of market related assumptions and their own experience and expertise to arrive at a value. ASB uses the third-party value only to assess the reasonableness of its own estimate. Deposit liabilities . The fair value of fixed-maturity certificates of deposit was estimated by discounting the future cash flows using the rates currently offered for FHLB advances of similar remaining maturities. Deposit liabilities are classified in Level 2 of the valuation hierarchy. Other borrowings . For advances and repurchase agreements, fair value is estimated using quantitative discounted cash flow models that require the use of interest rate inputs that are currently offered for advances and repurchase agreements of similar remaining maturities. The majority of market inputs are actively quoted and can be validated through external sources, including broker market transactions and third party pricing services. Long-term debt—other than bank . Fair value of long-term debt of HEI and the Utilities 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. Long-term debt-other than bank is classified in Level 2 of the valuation hierarchy. Interest rate lock commitments (IRLCs) . The estimated fair value of commitments to originate residential mortgage loans for sale is based on quoted prices for similar loans in active markets. IRLCs are classified as Level 2 measurements. Forward sales commitments . To be announced (TBA) mortgage-backed securities forward commitments are classified as Level 1, and consist of publicly-traded debt securities for which identical fair values can be obtained through quoted market prices in active exchange markets. The fair values of ASB’s best efforts and mandatory delivery loan sale commitments are determined using quoted prices in the market place that are observable and are classified as Level 2 measurements. The following table presents the carrying or notional amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments. For stock in Federal Home Loan Bank, the carrying amount is a reasonable estimate of fair value because it can only be redeemed at par. Estimated fair value Carrying or notional amount Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (in thousands) (Level 1) (Level 2) (Level 3) Total September 30, 2019 Financial assets HEI consolidated Available-for-sale investment securities $ 1,210,748 $ — $ 1,182,289 $ 28,459 $ 1,210,748 Held-to-maturity investment securities 132,704 — 137,497 — 137,497 Stock in Federal Home Loan Bank 9,953 — 9,953 — 9,953 Loans, net 5,048,411 — 17,164 5,121,275 5,138,439 Mortgage servicing rights 8,567 — — 11,485 11,485 Derivative assets 58,473 2 484 — 486 Financial liabilities HEI consolidated Deposit liabilities 783,308 — 779,370 — 779,370 Short-term borrowings—other than bank 163,836 — 163,836 — 163,836 Other bank borrowings 129,190 — 129,187 — 129,187 Long-term debt, net—other than bank 1,885,454 — 2,085,217 — 2,085,217 Derivative liabilities 63,391 18 2,901 — 2,919 Hawaiian Electric consolidated Short-term borrowings 112,353 — 112,353 — 112,353 Long-term debt, net 1,418,220 — 1,594,271 — 1,594,271 December 31, 2018 Financial assets HEI consolidated Available-for-sale investment securities 1,388,533 — 1,364,897 23,636 1,388,533 Held-to-maturity investment securities 141,875 — 142,057 — 142,057 Stock in Federal Home Loan Bank 9,958 — 9,958 — 9,958 Loans, net 4,792,707 — 1,809 4,800,244 4,802,053 Mortgage servicing rights 8,062 — — 13,618 13,618 Derivative assets 10,180 — 91 — 91 Financial liabilities HEI consolidated Deposit liabilities 827,841 — 817,667 — 817,667 Short-term borrowings—other than bank 73,992 — 73,992 — 73,992 Other bank borrowings 110,040 — 110,037 — 110,037 Long-term debt, net—other than bank 1,879,641 — 1,904,261 — 1,904,261 Derivative liabilities 34,132 34 596 — 630 Hawaiian Electric consolidated Short-term borrowings 25,000 — 25,000 — 25,000 Long-term debt, net 1,418,802 — 1,443,968 — 1,443,968 Fair value measurements on a recurring basis. Assets and liabilities measured at fair value on a recurring basis were as follows: September 30, 2019 December 31, 2018 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 $ — $ 1,019,305 $ — $ — $ 1,161,416 $ — U.S. Treasury and federal agency obligations — 126,708 — — 154,349 — Corporate bonds — 36,276 — — 49,132 — Mortgage revenue bonds — — 28,459 — — 23,636 $ — $ 1,182,289 $ 28,459 $ — $ 1,364,897 $ 23,636 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 477 $ — $ — $ 91 $ — Forward commitments (bank segment) 1 2 7 — — — — $ 2 $ 484 $ — $ — $ 91 $ — Derivative liabilities Interest rate lock commitments (bank segment) 1 $ — $ 7 $ — $ — $ — $ — Forward commitments (bank segment) 1 18 67 — 34 9 — Interest rate swap (Other segment) 2 — 2,827 — — 587 — $ 18 $ 2,901 $ — $ 34 $ 596 $ — 1 Derivatives are carried at fair value in other assets or other liabilities in the balance sheets with changes in value included in mortgage banking income. 2 Derivatives are included in other liabilities in the balance sheets. There were no transfers of financial assets and liabilities between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2019 . The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: Three months ended September 30 Nine months ended September 30 Mortgage revenue bonds 2019 2018 2019 2018 (in thousands) Beginning balance $ 28,166 $ 15,427 $ 23,636 $ 15,427 Principal payments received — — — — Purchases 293 3,657 4,823 3,657 Unrealized gain (loss) included in other comprehensive income — — — — Ending balance $ 28,459 $ 19,084 $ 28,459 $ 19,084 ASB holds two mortgage revenue bonds issued by the Department of Budget and Finance of the State of Hawaii. The Company estimates the fair value by using a discounted cash flow model to calculate the present value of estimated future principal and interest payments. The unobservable input used in the fair value measurement is the weighted average discount rate. As of September 30, 2019 , the weighted average discount rate was 3.66% , which was derived by incorporating a credit spread over the one month LIBOR rate. Significant increases (decreases) in the weighted average discount rate could result in a significantly lower (higher) fair value measurement. Fair value measurements on a nonrecurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis and therefore are not included in the tables above. These measurements primarily result from assets carried at the lower of cost or fair value or from impairment of individual assets. The carrying value of assets measured at fair value on a nonrecurring basis were as follows: Fair value measurements (in thousands) Balance Level 1 Level 2 Level 3 September 30, 2019 Loans $ 3,911 $ — $ — $ 3,911 December 31, 2018 Loans 77 — — 77 Real estate acquired in settlement of loans 186 — — 186 For nine months ended September 30, 2019 and 2018 , there were no adjustments to fair value for ASB’s loans held for sale. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) ($ in thousands) Fair value Valuation technique Significant unobservable input Range Weighted Average September 30, 2019 Home equity line of credit $ 199 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Residential land 25 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Commercial 3,687 Discounted cash flow Expected cash flows 3.9%-6.8% 4.6% Total loans $ 3,911 December 31, 2018 Home equity line of credit $ 77 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Total loans $ 77 Real estate acquired in settlement of loans $ 186 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) (1) Represent percent of outstanding principal balance. (2) N/A - Not applicable. There is one asset in each fair value measurement type. Significant increases (decreases) in any of those inputs in isolation would result in significantly higher (lower) fair value measurements. |
Basis of presentation (Policies
Basis of presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent accounting pronouncements | Leases . In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, “Leases (Topic 842),” which requires that lessees recognize a liability to make lease payments (the lease liability) and a right-of-use (ROU) asset, representing its right to use the underlying asset for the lease term, for all leases (except short-term leases) at the commencement date. For finance leases, a lessee is required to recognize interest on the lease liability separately from amortization of the ROU asset in the consolidated statements of income. For operating leases, a lessee is required to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis. The Company adopted ASU No. 2016-02 on January 1, 2019 and used the effective date as the date of initial application. Consequently, financial information for dates and periods before January 1, 2019 will not be updated and the disclosures required under the new standard will not be provided (i.e., the Company will continue to report prior comparative periods presented in the financial statements under Accounting Standards Codification (ASC) 840, including the required disclosures under ASC 840). The most significant effect of the new standard relates to the recognition of new ROU assets and lease liabilities on the Company’s balance sheet for purchase power agreements and real estate operating leases. On adoption, the Company recognized lease liabilities of approximately $257 million for the Company and approximately $236 million for the Utilities ( $215 million related to PPAs), based on the present value of the remaining minimum rental payments, with corresponding ROU assets for existing operating leases, under current leasing standards. In determining the lease liability upon transition, the Company used the incremental borrowing rates as of the adoption date based on the remaining lease term and remaining lease payments. See Note 6 for more information. Credit losses . In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ,” which is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations . ASU No. 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date (based on historical experience, current conditions and reasonable and supportable forecasts) and enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU No. 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The other-than-temporary impairment model of accounting for credit losses on available-for-sale debt securities will be replaced with an estimate of expected credit losses only when the fair value is below the amortized cost of the asset. The length of time the fair value of an available-for-sale debt security has been below the amortized cost will no longer impact the determination of whether a credit loss exists. The available-for-sale debt security model will also require the use of an allowance to record the estimated losses (and subsequent recoveries). The Company has assembled a cross-functional team that continues to work through its implementation plan. The Company is in the final stages of validating and testing the models that will be used to calculate the credit loss reserve for its loan portfolio and is conducting parallel runs of its new processes and controls. The allowance for credit losses is a material estimate of the Company, and given the change from an incurred loss model to a methodology that considers the credit loss over the expected life of the loan, the Company believes that the allowance for loan losses for its loans held for investment will increase at the adoption date. The magnitude of the increase will depend on the composition, characteristics and quality of its loans and off balance sheet credit exposures as well as the prevailing economic conditions as of the adoption date. Based on its assessment, the Company does not expect that the new standard will have a material impact to the Utilities’ customer and other accounts receivables and accrued unbilled revenue. The Company will continue to make refinements to its credit loss model throughout the remainder of 2019 and plans to adopt ASU No. 2016-13 in the first quarter of 2020. The guidance is to be applied on a modified retrospective basis with the cumulative effect of initially applying the amendments recognized in retained earnings at the date of initial application (January 1, 2020), and the Company expects the bank to remain well capitalized under the regulatory framework after the initial application of ASU No. 2016-03. Codification Improvements . In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which is intended to clarify certain issues related to the accounting for financial instruments. • With respect to Topic 326, Financial Instruments - Credit Losses , ASU No. 2019-04 allows entities to measure the allowance for credit losses on accrued interest receivable balances separately from other components of the amortized cost basis of associated financial assets, or to make an accounting policy election not to measure an allowance for credit losses on accrued interest receivable amounts if an entity writes off the uncollectible accrued interest receivable balance in a timely manner and makes certain disclosures. ASU No. 2019-04 also allows an entity to make an accounting policy election regarding the presentation and disclosure of accrued interest receivables and the related allowance for credit losses for those accrued interest receivables. ASU No. 2019-04 also clarifies certain issues related to transfers between classifications or categories for loans and debt securities, recoveries, variable interest rates and prepayments, vintage disclosures, and contractual extensions and renewal options. • With respect to Topic 815, Derivatives and Hedging , ASU No. 2019-04 provides amendments, among others, that address partial-term fair value hedges, fair value hedge basis adjustments, and certain transition requirements. • With respect to Topic 825, Financial Instruments , ASU No. 2019-04 clarifies the scope of the guidance and disclosure requirements with respect to recognizing and measuring financial instruments. The amended guidance in ASU No. 2019-04 will be effective for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted. The Company plans to adopt ASU No. 2019-04 in the first quarter of 2020 and is currently evaluating the impact of the ASU on the Company’s consolidated financial statements. |
Reclassifications | Reclassifications made to prior year financial statements to conform to the 2019 presentation include classifying contributions in aid of construction with capital expenditures in the cash flows from investing activities section of the condensed consolidated statements of cash flows for HEI and Hawaiian Electric. |
Segment financial information (
Segment financial information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment financial information | (in thousands) Electric utility Bank Other Total Three months ended September 30, 2019 Revenues from external customers $ 688,299 $ 83,201 $ 35 $ 771,535 Intersegment revenues (eliminations) 31 — (31 ) — Revenues $ 688,330 $ 83,201 $ 4 $ 771,535 Income (loss) before income taxes $ 58,099 $ 29,157 $ (8,563 ) $ 78,693 Income taxes (benefit) 10,822 6,269 (2,288 ) 14,803 Net income (loss) 47,277 22,888 (6,275 ) 63,890 Preferred stock dividends of subsidiaries 498 — (27 ) 471 Net income (loss) for common stock $ 46,779 $ 22,888 $ (6,248 ) $ 63,419 Nine months ended September 30, 2019 Revenues from external customers $ 1,900,552 $ 247,940 $ 143 $ 2,148,635 Intersegment revenues (eliminations) 57 — (57 ) — Revenues $ 1,900,609 $ 247,940 $ 86 $ 2,148,635 Income (loss) before income taxes $ 140,775 $ 76,611 $ (27,960 ) $ 189,426 Income taxes (benefit) 27,800 15,868 (7,278 ) 36,390 Net income (loss) 112,975 60,743 (20,682 ) 153,036 Preferred stock dividends of subsidiaries 1,496 — (79 ) 1,417 Net income (loss) for common stock $ 111,479 $ 60,743 $ (20,603 ) $ 151,619 Total assets (at September 30, 2019) $ 6,260,968 $ 7,135,250 $ 121,752 $ 13,517,970 Three months ended September 30, 2018 Revenues from external customers $ 687,396 $ 80,496 $ 156 $ 768,048 Intersegment revenues (eliminations) 13 — (13 ) — Revenues $ 687,409 $ 80,496 $ 143 $ 768,048 Income (loss) before income taxes $ 57,354 $ 26,831 $ (6,952 ) $ 77,233 Income taxes (benefit) 7,144 5,610 (1,892 ) 10,862 Net income (loss) 50,210 21,221 (5,060 ) 66,371 Preferred stock dividends of subsidiaries 498 — (27 ) 471 Net income (loss) for common stock $ 49,712 $ 21,221 $ (5,033 ) $ 65,900 Nine months ended September 30, 2018 Revenues from external customers $ 1,865,922 $ 233,019 $ 258 $ 2,099,199 Intersegment revenues (eliminations) 40 — (40 ) — Revenues $ 1,865,962 $ 233,019 $ 218 $ 2,099,199 Income (loss) before income taxes $ 134,847 $ 77,845 $ (22,601 ) $ 190,091 Income taxes (benefit) 24,995 17,103 (5,625 ) 36,473 Net income (loss) 109,852 60,742 (16,976 ) 153,618 Preferred stock dividends of subsidiaries 1,496 — (79 ) 1,417 Net income (loss) for common stock $ 108,356 $ 60,742 $ (16,897 ) $ 152,201 Total assets (at December 31, 2018) $ 5,967,503 $ 7,027,894 $ 108,654 $ 13,104,051 |
Electric utility segment (Table
Electric utility segment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Regulatory Projects and Legal Obligations [Line Items] | |
Schedule of condensed consolidating statements of income (loss) | Statements of Income Data Three months ended September 30, Nine months ended September 30 (in thousands) 2019 2018 2019 2018 Interest and dividend income Interest and fees on loans $ 59,260 $ 55,885 $ 175,740 $ 163,318 Interest and dividends on investment securities 7,599 9,300 25,762 27,130 Total interest and dividend income 66,859 65,185 201,502 190,448 Interest expense Interest on deposit liabilities 4,384 3,635 12,923 9,876 Interest on other borrowings 422 404 1,361 1,293 Total interest expense 4,806 4,039 14,284 11,169 Net interest income 62,053 61,146 187,218 179,279 Provision for loan losses 3,315 6,033 17,873 12,337 Net interest income after provision for loan losses 58,738 55,113 169,345 166,942 Noninterest income Fees from other financial services 5,085 4,543 14,445 13,941 Fee income on deposit liabilities 5,320 5,454 15,402 15,781 Fee income on other financial products 1,706 1,746 5,129 5,075 Bank-owned life insurance 1,660 2,663 6,309 4,667 Mortgage banking income 1,490 169 3,080 1,399 Gains on sale of investment securities, net 653 — 653 — Other income, net 428 736 1,420 1,708 Total noninterest income 16,342 15,311 46,438 42,571 Noninterest expense Compensation and employee benefits 25,364 23,952 76,626 72,047 Occupancy 5,694 4,363 15,843 12,837 Data processing 3,763 3,583 11,353 10,587 Services 2,829 2,485 7,861 8,560 Equipment 2,163 1,783 6,416 5,385 Office supplies, printing and postage 1,297 1,556 4,320 4,554 Marketing 1,142 993 3,455 2,723 FDIC insurance (5 ) 638 1,249 2,078 Other expense 3,676 4,240 12,049 12,897 Total noninterest expense 45,923 43,593 139,172 131,668 Income before income taxes 29,157 26,831 76,611 77,845 Income taxes 6,269 5,610 15,868 17,103 Net income $ 22,888 $ 21,221 $ 60,743 $ 60,742 Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended September 30, Nine months ended September 30 (in thousands) 2019 2018 2019 2018 Interest and dividend income 66,859 65,185 $ 201,502 $ 190,448 Noninterest income 16,342 15,311 46,438 42,571 *Revenues-Bank 83,201 80,496 247,940 233,019 Total interest expense 4,806 4,039 14,284 11,169 Provision for loan losses 3,315 6,033 17,873 12,337 Noninterest expense 45,923 43,593 139,172 131,668 Less: Retirement defined benefits gain (expense)—other than service costs 196 (433 ) 276 (1,223 ) *Expenses-Bank 54,240 53,232 171,605 153,951 *Operating income-Bank 28,961 27,264 76,335 79,068 Add back: Retirement defined benefits (gain) expense—other than service costs (196 ) 433 (276 ) 1,223 Income before income taxes $ 29,157 $ 26,831 $ 76,611 $ 77,845 |
Schedule of condensed consolidating balance sheet | Balance Sheets Data (in thousands) September 30, 2019 December 31, 2018 Assets Cash and due from banks $ 135,813 $ 122,059 Interest-bearing deposits 1,315 4,225 Investment securities Available-for-sale, at fair value 1,210,748 1,388,533 Held-to-maturity, at amortized cost (fair value of $137,497 and $142,057, respectively) 132,704 141,875 Stock in Federal Home Loan Bank, at cost 9,953 9,958 Loans held for investment 5,084,336 4,843,021 Allowance for loan losses (53,040 ) (52,119 ) Net loans 5,031,296 4,790,902 Loans held for sale, at lower of cost or fair value 17,115 1,805 Other 514,116 486,347 Goodwill 82,190 82,190 Total assets $ 7,135,250 $ 7,027,894 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 1,885,028 $ 1,800,727 Deposit liabilities—interest-bearing 4,311,195 4,358,125 Other borrowings 129,190 110,040 Other 135,606 124,613 Total liabilities 6,461,019 6,393,505 Commitments and contingencies Common stock 1 1 Additional paid-in capital 348,933 347,170 Retained earnings 339,029 325,286 Accumulated other comprehensive loss, net of tax benefits Net unrealized gains (losses) on securities $ 2,945 $ (24,423 ) Retirement benefit plans (16,677 ) (13,732 ) (13,645 ) (38,068 ) Total shareholder’s equity 674,231 634,389 Total liabilities and shareholder’s equity $ 7,135,250 $ 7,027,894 Other assets Bank-owned life insurance $ 156,077 $ 151,172 Premises and equipment, net 207,659 214,415 Accrued interest receivable 19,743 20,140 Mortgage-servicing rights 8,567 8,062 Low-income housing equity investments 69,286 67,626 Real estate acquired in settlement of loans, net — 406 Real estate held for sale 9,074 — Other 43,710 24,526 $ 514,116 $ 486,347 Other liabilities Accrued expenses $ 41,264 $ 54,084 Federal and state income taxes payable 9,472 2,012 Cashier’s checks 27,498 26,906 Advance payments by borrowers 5,164 10,183 Other 52,208 31,428 $ 135,606 $ 124,613 |
Hawaiian Electric Company, Inc. and Subsidiaries | |
Regulatory Projects and Legal Obligations [Line Items] | |
Schedule of purchases from all IPPs | Purchases from all IPPs were as follows: Three months ended September 30 Nine months ended September 30 (in millions) 2019 2018 2019 2018 Kalaeloa $ 58 $ 62 $ 159 $ 154 AES Hawaii 38 38 102 107 HPOWER 20 19 57 51 Puna Geothermal Venture — — — 15 Hamakua Energy 17 17 51 39 Wind IPPs 30 31 73 84 Solar IPPs 11 8 26 22 Other IPPs 1 2 2 4 6 Total IPPs $ 176 $ 177 $ 472 $ 478 1 Includes hydro power and other PPAs |
Schedule of net annual incremental amounts proposed to be collected (refunded) | The net annual incremental amounts approved to be collected (refunded) from June 1, 2019 through May 31, 2020 are as follows: (in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Total 2019 Annual incremental RAM adjusted revenues, net of changes in Tax Act adjustment* $ 6.5 $ 1.1 $ 5.4 $ 13.0 Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery (12.2 ) (2.0 ) 0.8 (13.4 ) Performance Incentive Mechanisms (net) (1.3 ) — (0.4 ) (1.7 ) Net annual incremental amount to be collected (refunded) under the tariffs $ (7.0 ) $ (0.9 ) $ 5.8 $ (2.1 ) * The 2017 Tax Cuts and Jobs Act (the Tax Act) had two incremental impacts in 2019. First, the 2019 RAM calculation for all of the Utilities incorporated additional amortization of the regulatory liability associated with certain deferred taxes. Secondly, Maui Electric incorporated a $2.8 million adjustment in its 2018 annual decoupling filing related to the Tax Act which is not recurring in 2019. |
Schedule of condensed consolidating statements of income (loss) | Condensed Consolidating Statement of Income Nine months ended September 30, 2018 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 1,321,089 276,462 268,567 — (156 ) $ 1,865,962 Expenses Fuel oil 375,862 64,348 105,026 — — 545,236 Purchased power 367,317 72,589 38,332 — — 478,238 Other operation and maintenance 228,773 50,366 54,666 — — 333,805 Depreciation 103,112 30,165 18,533 — — 151,810 Taxes, other than income taxes 125,214 25,835 25,275 — — 176,324 Total expenses 1,200,278 243,303 241,832 — — 1,685,413 Operating income 120,811 33,159 26,735 — (156 ) 180,549 Allowance for equity funds used during construction 7,123 274 842 — — 8,239 Equity in earnings of subsidiaries 35,041 — — — (35,041 ) — Retirement defined benefits expense—other than service costs (2,091 ) (312 ) (531 ) — — (2,934 ) Interest expense and other charges, net (38,967 ) (8,855 ) (7,156 ) — 156 (54,822 ) Allowance for borrowed funds used during construction 3,198 190 427 — — 3,815 Income before income taxes 125,115 24,456 20,317 — (35,041 ) 134,847 Income taxes 15,949 5,017 4,029 — — 24,995 Net income 109,166 19,439 16,288 — (35,041 ) 109,852 Preferred stock dividends of subsidiaries — 400 286 — — 686 Net income attributable to Hawaiian Electric 109,166 19,039 16,002 — (35,041 ) 109,166 Preferred stock dividends of Hawaiian Electric 810 — — — — 810 Net income for common stock $ 108,356 19,039 16,002 — (35,041 ) $ 108,356 Condensed Consolidating Statement of Income Nine months ended September 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 1,347,412 270,697 282,939 — (439 ) $ 1,900,609 Expenses Fuel oil 374,100 62,210 105,012 — — 541,322 Purchased power 367,541 67,548 37,247 — — 472,336 Other operation and maintenance 240,311 56,635 64,859 — — 361,805 Depreciation 107,602 31,359 22,834 — — 161,795 Taxes, other than income taxes 127,654 25,170 26,480 — — 179,304 Total expenses 1,217,208 242,922 256,432 — — 1,716,562 Operating income 130,204 27,775 26,507 — (439 ) 184,047 Allowance for equity funds used during construction 7,746 579 1,010 — — 9,335 Equity in earnings of subsidiaries 30,983 — — — (30,983 ) — Retirement defined benefits expense—other than service costs (1,716 ) (316 ) (95 ) — — (2,127 ) Interest expense and other charges, net (38,961 ) (8,345 ) (7,078 ) — 439 (53,945 ) Allowance for borrowed funds used during construction 2,854 242 369 — — 3,465 Income before income taxes 131,110 19,935 20,713 — (30,983 ) 140,775 Income taxes 18,821 4,431 4,548 — — 27,800 Net income 112,289 15,504 16,165 — (30,983 ) 112,975 Preferred stock dividends of subsidiaries — 400 286 — — 686 Net income attributable to Hawaiian Electric 112,289 15,104 15,879 — (30,983 ) 112,289 Preferred stock dividends of Hawaiian Electric 810 — — — — 810 Net income for common stock $ 111,479 15,104 15,879 — (30,983 ) $ 111,479 Condensed Consolidating Statement of Income Three months ended September 30, 2018 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 488,210 98,981 100,273 — (55 ) $ 687,409 Expenses Fuel oil 141,357 26,429 38,765 — — 206,551 Purchased power 138,135 24,091 15,364 — — 177,590 Other operation and maintenance 78,988 15,253 19,312 — — 113,553 Depreciation 34,282 10,072 6,629 — — 50,983 Taxes, other than income taxes 46,096 9,215 9,385 — — 64,696 Total expenses 438,858 85,060 89,455 — — 613,373 Operating income 49,352 13,921 10,818 — (55 ) 74,036 Allowance for equity funds used during construction 1,648 39 275 — — 1,962 Equity in earnings of subsidiaries 16,636 — — — (16,636 ) — Retirement defined benefits expense—other than service costs (475 ) (104 ) (103 ) — — (682 ) Interest expense and other charges, net (13,542 ) (3,026 ) (2,455 ) — 55 (18,968 ) Allowance for borrowed funds used during construction 810 49 147 — — 1,006 Income before income taxes 54,429 10,879 8,682 — (16,636 ) 57,354 Income taxes 4,447 1,571 1,126 — — 7,144 Net income 49,982 9,308 7,556 — (16,636 ) 50,210 Preferred stock dividends of subsidiaries — 133 95 — — 228 Net income attributable to Hawaiian Electric 49,982 9,175 7,461 — (16,636 ) 49,982 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 49,712 9,175 7,461 — (16,636 ) $ 49,712 Condensed Consolidating Statement of Income Three months ended September 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 491,723 93,576 103,236 — (205 ) $ 688,330 Expenses Fuel oil 139,747 21,427 37,919 — — 199,093 Purchased power 135,447 24,342 15,248 — — 175,037 Other operation and maintenance 80,582 19,868 23,965 — — 124,415 Depreciation 35,867 10,453 7,615 — — 53,935 Taxes, other than income taxes 46,433 8,359 9,265 — — 64,057 Total expenses 438,076 84,449 94,012 — — 616,537 Operating income 53,647 9,127 9,224 — (205 ) 71,793 Allowance for equity funds used during construction 2,685 229 336 — — 3,250 Equity in earnings of subsidiaries 11,048 — — — (11,048 ) — Retirement defined benefits expense—other than service costs (582 ) (105 ) (36 ) — — (723 ) Interest expense and other charges, net (12,771 ) (2,524 ) (2,339 ) — 205 (17,429 ) Allowance for borrowed funds used during construction 990 95 123 — — 1,208 Income before income taxes 55,017 6,822 7,308 — (11,048 ) 58,099 Income taxes 7,968 1,420 1,434 — — 10,822 Net income 47,049 5,402 5,874 — (11,048 ) 47,277 Preferred stock dividends of subsidiaries — 133 95 — — 228 Net income attributable to Hawaiian Electric 47,049 5,269 5,779 — (11,048 ) 47,049 Preferred stock dividends of Hawaiian Electric 270 — — — — 270 Net income for common stock $ 46,779 5,269 5,779 — (11,048 ) $ 46,779 |
Schedule of condensed consolidating statement of comprehensive income | Condensed Consolidating Statement of Comprehensive Income Nine months ended September 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Net income for common stock $ 111,479 15,104 15,879 — (30,983 ) $ 111,479 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 7,162 1,091 887 — (1,978 ) 7,162 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (7,089 ) (1,089 ) (887 ) — 1,976 (7,089 ) Other comprehensive income, net of taxes 73 2 — — (2 ) 73 Comprehensive income attributable to common shareholder $ 111,552 15,106 15,879 — (30,985 ) $ 111,552 Condensed Consolidating Statement of Comprehensive Income Nine months ended September 30, 2018 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Net income for common stock $ 108,356 19,039 16,002 — (35,041 ) $ 108,356 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 14,259 2,114 1,817 — (3,931 ) 14,259 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (14,174 ) (2,113 ) (1,817 ) — 3,930 (14,174 ) Other comprehensive income, net of taxes 85 1 — — (1 ) 85 Comprehensive income attributable to common shareholder $ 108,441 19,040 16,002 — (35,042 ) $ 108,441 Condensed Consolidating Statement of Comprehensive Income Three months ended September 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net income for common stock $ 46,779 5,269 5,779 — (11,048 ) $ 46,779 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 2,519 387 309 — (696 ) 2,519 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (2,493 ) (387 ) (309 ) — 696 (2,493 ) Other comprehensive income, net of taxes 26 — — — — 26 Comprehensive income attributable to common shareholder $ 46,805 5,269 5,779 — (11,048 ) $ 46,805 Condensed Consolidating Statement of Comprehensive Income Three months ended September 30, 2018 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net income for common stock $ 49,712 9,175 7,461 — (16,636 ) $ 49,712 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 4,753 705 606 — (1,311 ) 4,753 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (4,725 ) (705 ) (606 ) — 1,311 (4,725 ) Other comprehensive income, net of taxes 28 — — — — 28 Comprehensive income attributable to common shareholder $ 49,740 9,175 7,461 — (16,636 ) $ 49,740 |
Schedule of condensed consolidating balance sheet | Condensed Consolidating Balance Sheet December 31, 2018 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consoli- dating adjustments Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 40,449 5,606 3,612 — — $ 49,667 Plant and equipment 4,456,090 1,259,553 1,094,028 — — 6,809,671 Less accumulated depreciation (1,523,861 ) (547,848 ) (505,633 ) — — (2,577,342 ) Construction in progress 193,677 8,781 30,687 — — 233,145 Utility property, plant and equipment, net 3,166,355 726,092 622,694 — — 4,515,141 Nonutility property, plant and equipment, less accumulated depreciation 5,314 115 1,532 — — 6,961 Total property, plant and equipment, net 3,171,669 726,207 624,226 — — 4,522,102 Investment in wholly owned subsidiaries, at equity 576,838 — — — (576,838 ) — Current assets Cash and cash equivalents 16,732 15,623 3,421 101 — 35,877 Customer accounts receivable, net 125,960 26,483 25,453 — — 177,896 Accrued unbilled revenues, net 88,060 17,051 16,627 — — 121,738 Other accounts receivable, net 21,962 3,131 3,033 — (21,911 ) 6,215 Fuel oil stock, at average cost 54,262 11,027 14,646 — — 79,935 Materials and supplies, at average cost 30,291 7,155 17,758 — — 55,204 Prepayments and other 23,214 5,212 3,692 — — 32,118 Regulatory assets 60,093 3,177 7,746 — — 71,016 Total current assets 420,574 88,859 92,376 101 (21,911 ) 579,999 Other long-term assets Regulatory assets 537,708 120,658 104,044 — — 762,410 Other 69,749 15,944 17,299 — — 102,992 Total other long-term assets 607,457 136,602 121,343 — — 865,402 Total assets $ 4,776,538 951,668 837,945 101 (598,749 ) $ 5,967,503 Capitalization and liabilities Capitalization Common stock equity $ 1,957,641 295,874 280,863 101 (576,838 ) $ 1,957,641 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 1,000,137 217,749 200,916 — — 1,418,802 Total capitalization 2,980,071 520,623 486,779 101 (576,838 ) 3,410,736 Current liabilities Short-term borrowings-non-affiliate 25,000 — — — — 25,000 Accounts payable 126,384 20,045 25,362 — — 171,791 Interest and preferred dividends payable 16,203 4,203 2,841 — (32 ) 23,215 Taxes accrued 164,747 34,128 34,458 — — 233,333 Regulatory liabilities 7,699 4,872 5,406 — — 17,977 Other 46,391 15,077 20,414 — (21,879 ) 60,003 Total current liabilities 386,424 78,325 88,481 — (21,911 ) 531,319 Deferred credits and other liabilities Deferred income taxes 271,438 54,936 56,823 — — 383,197 Regulatory liabilities 657,210 176,101 98,948 — — 932,259 Unamortized tax credits 60,271 16,217 15,034 — — 91,522 Defined benefit pension and other postretirement benefit plans liability 359,174 73,147 71,338 — — 503,659 Other 61,950 32,319 20,542 — — 114,811 Total deferred credits and other liabilities 1,410,043 352,720 262,685 — — 2,025,448 Total capitalization and liabilities $ 4,776,538 951,668 837,945 101 (598,749 ) $ 5,967,503 Condensed Consolidating Balance Sheet September 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consoli- dating adjustments Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 42,112 5,606 3,612 — — $ 51,330 Plant and equipment 4,676,163 1,282,065 1,139,058 — — 7,097,286 Less accumulated depreciation (1,595,962 ) (569,878 ) (520,548 ) — — (2,686,388 ) Construction in progress 185,022 17,219 24,315 — — 226,556 Utility property, plant and equipment, net 3,307,335 735,012 646,437 — — 4,688,784 Nonutility property, plant and equipment, less accumulated depreciation 5,311 115 1,532 — — 6,958 Total property, plant and equipment, net 3,312,646 735,127 647,969 — — 4,695,742 Investment in wholly owned subsidiaries, at equity 588,886 — — — (588,886 ) — Current assets Cash and cash equivalents 22,073 5,003 5,330 101 — 32,507 Advances to affiliates 22,200 15,000 — — (37,200 ) — Customer accounts receivable, net 111,171 25,676 26,246 — — 163,093 Accrued unbilled revenues, net 90,015 15,880 17,925 — — 123,820 Other accounts receivable, net 10,994 1,516 2,056 — (9,948 ) 4,618 Fuel oil stock, at average cost 62,645 10,694 11,204 — — 84,543 Materials and supplies, at average cost 33,747 10,170 16,893 — — 60,810 Prepayments and other 38,439 4,622 4,655 — (1,395 ) 46,321 Regulatory assets 29,410 1,684 1,857 — — 32,951 Total current assets 420,694 90,245 86,166 101 (48,543 ) 548,663 Other long-term assets Operating lease right-of-use assets 190,300 1,560 394 — — 192,254 Regulatory assets 502,254 112,900 101,162 — — 716,316 Other 72,386 17,096 18,511 — — 107,993 Total other long-term assets 764,940 131,556 120,067 — — 1,016,563 Total assets $ 5,087,166 956,928 854,202 101 (637,429 ) $ 6,260,968 Capitalization and liabilities Capitalization Common stock equity $ 1,993,254 303,345 285,440 101 (588,886 ) $ 1,993,254 Cumulative preferred stock—not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 937,211 203,952 181,092 — — 1,322,255 Total capitalization 2,952,758 514,297 471,532 101 (588,886 ) 3,349,802 Current liabilities Current portion of operating lease liabilities 62,634 94 30 — — 62,758 Current portion of long-term debt 61,976 13,992 19,997 — — 95,965 Short-term borrowings from non-affiliates 112,353 — — — — 112,353 Short-term borrowings from affiliate 15,000 — 22,200 — (37,200 ) — Accounts payable 113,544 17,654 21,364 — — 152,562 Interest and preferred dividends payable 19,699 3,695 4,215 — (69 ) 27,540 Taxes accrued 143,156 30,874 32,204 — (1,395 ) 204,839 Regulatory liabilities 9,255 5,836 4,425 — — 19,516 Other 51,943 10,187 15,648 — (9,879 ) 67,899 Total current liabilities 589,560 82,332 120,083 — (48,543 ) 743,432 Deferred credits and other liabilities Operating lease liabilities 126,979 1,466 367 — — 128,812 Deferred income taxes 282,336 53,939 56,286 — — 392,561 Regulatory liabilities 663,414 181,472 99,338 — — 944,224 Unamortized tax credits 60,095 16,054 14,571 — — 90,720 Defined benefit pension and other postretirement benefit plans liability 359,420 71,112 69,654 — — 500,186 Other 52,604 36,256 22,371 — — 111,231 Total deferred credits and other liabilities 1,544,848 360,299 262,587 — — 2,167,734 Total capitalization and liabilities $ 5,087,166 956,928 854,202 101 (637,429 ) $ 6,260,968 |
Schedule of condensed consolidating statement of changes in common stock equity | Condensed Consolidating Statement of Changes in Common Stock Equity Nine months ended September 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Balance, December 31, 2018 $ 1,957,641 295,874 280,863 101 (576,838 ) $ 1,957,641 Net income for common stock 111,479 15,104 15,879 — (30,983 ) 111,479 Other comprehensive income, net of taxes 73 2 — — (2 ) 73 Common stock dividends (75,939 ) (7,635 ) (11,301 ) — 18,936 (75,939 ) Common stock issuance expenses — — (1 ) — 1 — Balance, September 30, 2019 $ 1,993,254 303,345 285,440 101 (588,886 ) $ 1,993,254 Condensed Consolidating Statement of Changes in Common Stock Equity Nine months ended September 30, 2018 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Balance, December 31, 2017 $ 1,845,283 286,647 270,265 101 (557,013 ) $ 1,845,283 Net income for common stock 108,356 19,039 16,002 — (35,041 ) 108,356 Other comprehensive income, net of taxes 85 1 — — (1 ) 85 Common stock dividends (77,479 ) (11,467 ) (9,014 ) — 20,481 (77,479 ) Common stock issuance expenses (8 ) — — — — (8 ) Balance, September 30, 2018 $ 1,876,237 294,220 277,253 101 (571,574 ) $ 1,876,237 |
Schedule of condensed consolidating statement of cash flows | Condensed Consolidating Statement of Cash Flows Nine months ended September 30, 2018 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other Consolidating Hawaiian Electric Net cash provided by operating activities $ 159,876 35,203 19,455 — (20,812 ) $ 193,722 Cash flows from investing activities Capital expenditures (225,907 ) (40,457 ) (44,005 ) — — (310,369 ) Other 4,518 1,177 3,785 — 331 9,811 Advances (to) from affiliates (2,000 ) — 12,000 — (10,000 ) — Net cash used in investing activities (223,389 ) (39,280 ) (28,220 ) — (9,669 ) (300,558 ) Cash flows from financing activities Common stock dividends (77,479 ) (11,467 ) (9,014 ) — 20,481 (77,479 ) Preferred stock dividends of Hawaiian Electric and subsidiaries (810 ) (400 ) (286 ) — — (1,496 ) Proceeds from issuance of long-term debt 75,000 15,000 10,000 — — 100,000 Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less 68,914 — 2,000 — 10,000 80,914 Other (304 ) (54 ) (38 ) — — (396 ) Net cash provided by financing activities 65,321 3,079 2,662 — 30,481 101,543 Net increase (decrease) in cash and cash equivalents 1,808 (998 ) (6,103 ) — — (5,293 ) Cash and cash equivalents, beginning of period 2,059 4,025 6,332 101 — 12,517 Cash and cash equivalents, end of period $ 3,867 3,027 229 101 — $ 7,224 Condensed Consolidating Statement of Cash Flows Nine months ended September 30, 2019 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Net cash provided by operating activities $ 223,733 41,694 36,126 — (18,935 ) $ 282,618 Cash flows from investing activities Capital expenditures (223,803 ) (29,119 ) (44,885 ) — — (297,807 ) Advances to affiliates (22,200 ) (15,000 ) — — 37,200 — Other 2,975 (283 ) (30 ) — — 2,662 Net cash used in investing activities (243,028 ) (44,402 ) (44,915 ) — 37,200 (295,145 ) Cash flows from financing activities Common stock dividends (75,939 ) (7,635 ) (11,301 ) — 18,936 (75,939 ) Preferred stock dividends of Hawaiian Electric and subsidiaries (810 ) (400 ) (286 ) — — (1,496 ) Proceeds from issuance of short-term debt 25,000 — — — — 25,000 Proceeds from issuance of long-term debt 120,000 70,000 10,000 — — 200,000 Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds (121,546 ) (70,000 ) (10,000 ) — — (201,546 ) Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less 77,353 — 22,200 — (37,200 ) 62,353 Other 578 123 85 — (1 ) 785 Net cash provided by financing activities 24,636 (7,912 ) 10,698 — (18,265 ) 9,157 Net increase (decrease) in cash and cash equivalents 5,341 (10,620 ) 1,909 — — (3,370 ) Cash and cash equivalents, beginning of period 16,732 15,623 3,421 101 — 35,877 Cash and cash equivalents, end of period $ 22,073 5,003 5,330 101 — $ 32,507 |
Bank segment (Tables)
Bank segment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Bank Subsidiary [Abstract] | |
Schedule of statements of income data | Statements of Income Data Three months ended September 30, Nine months ended September 30 (in thousands) 2019 2018 2019 2018 Interest and dividend income Interest and fees on loans $ 59,260 $ 55,885 $ 175,740 $ 163,318 Interest and dividends on investment securities 7,599 9,300 25,762 27,130 Total interest and dividend income 66,859 65,185 201,502 190,448 Interest expense Interest on deposit liabilities 4,384 3,635 12,923 9,876 Interest on other borrowings 422 404 1,361 1,293 Total interest expense 4,806 4,039 14,284 11,169 Net interest income 62,053 61,146 187,218 179,279 Provision for loan losses 3,315 6,033 17,873 12,337 Net interest income after provision for loan losses 58,738 55,113 169,345 166,942 Noninterest income Fees from other financial services 5,085 4,543 14,445 13,941 Fee income on deposit liabilities 5,320 5,454 15,402 15,781 Fee income on other financial products 1,706 1,746 5,129 5,075 Bank-owned life insurance 1,660 2,663 6,309 4,667 Mortgage banking income 1,490 169 3,080 1,399 Gains on sale of investment securities, net 653 — 653 — Other income, net 428 736 1,420 1,708 Total noninterest income 16,342 15,311 46,438 42,571 Noninterest expense Compensation and employee benefits 25,364 23,952 76,626 72,047 Occupancy 5,694 4,363 15,843 12,837 Data processing 3,763 3,583 11,353 10,587 Services 2,829 2,485 7,861 8,560 Equipment 2,163 1,783 6,416 5,385 Office supplies, printing and postage 1,297 1,556 4,320 4,554 Marketing 1,142 993 3,455 2,723 FDIC insurance (5 ) 638 1,249 2,078 Other expense 3,676 4,240 12,049 12,897 Total noninterest expense 45,923 43,593 139,172 131,668 Income before income taxes 29,157 26,831 76,611 77,845 Income taxes 6,269 5,610 15,868 17,103 Net income $ 22,888 $ 21,221 $ 60,743 $ 60,742 Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*: Three months ended September 30, Nine months ended September 30 (in thousands) 2019 2018 2019 2018 Interest and dividend income 66,859 65,185 $ 201,502 $ 190,448 Noninterest income 16,342 15,311 46,438 42,571 *Revenues-Bank 83,201 80,496 247,940 233,019 Total interest expense 4,806 4,039 14,284 11,169 Provision for loan losses 3,315 6,033 17,873 12,337 Noninterest expense 45,923 43,593 139,172 131,668 Less: Retirement defined benefits gain (expense)—other than service costs 196 (433 ) 276 (1,223 ) *Expenses-Bank 54,240 53,232 171,605 153,951 *Operating income-Bank 28,961 27,264 76,335 79,068 Add back: Retirement defined benefits (gain) expense—other than service costs (196 ) 433 (276 ) 1,223 Income before income taxes $ 29,157 $ 26,831 $ 76,611 $ 77,845 |
Schedule of statements of comprehensive income data | Statements of Comprehensive Income Data Three months ended September 30, Nine months ended September 30 (in thousands) 2019 2018 2019 2018 Net income $ 22,888 $ 21,221 $ 60,743 $ 60,742 Other comprehensive income (loss), net of taxes: 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) benefits of $(1,557), $1,876, $(10,194) and $8,335, respectively 4,253 (5,123 ) 27,846 (22,768 ) Reclassification adjustment for net realized gains included in net income, net of taxes of $175, nil, $175, and nil, respectively (478 ) — (478 ) — Retirement benefit plans: Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of (taxes) benefits of $13, $141, $(1,109) and $968, respectively 34 382 (3,032 ) 1,970 Other comprehensive income (loss), net of taxes 3,809 (4,741 ) 24,336 (20,798 ) Comprehensive income $ 26,697 $ 16,480 $ 85,079 $ 39,944 |
Schedule of balance sheets data | Balance Sheets Data (in thousands) September 30, 2019 December 31, 2018 Assets Cash and due from banks $ 135,813 $ 122,059 Interest-bearing deposits 1,315 4,225 Investment securities Available-for-sale, at fair value 1,210,748 1,388,533 Held-to-maturity, at amortized cost (fair value of $137,497 and $142,057, respectively) 132,704 141,875 Stock in Federal Home Loan Bank, at cost 9,953 9,958 Loans held for investment 5,084,336 4,843,021 Allowance for loan losses (53,040 ) (52,119 ) Net loans 5,031,296 4,790,902 Loans held for sale, at lower of cost or fair value 17,115 1,805 Other 514,116 486,347 Goodwill 82,190 82,190 Total assets $ 7,135,250 $ 7,027,894 Liabilities and shareholder’s equity Deposit liabilities—noninterest-bearing $ 1,885,028 $ 1,800,727 Deposit liabilities—interest-bearing 4,311,195 4,358,125 Other borrowings 129,190 110,040 Other 135,606 124,613 Total liabilities 6,461,019 6,393,505 Commitments and contingencies Common stock 1 1 Additional paid-in capital 348,933 347,170 Retained earnings 339,029 325,286 Accumulated other comprehensive loss, net of tax benefits Net unrealized gains (losses) on securities $ 2,945 $ (24,423 ) Retirement benefit plans (16,677 ) (13,732 ) (13,645 ) (38,068 ) Total shareholder’s equity 674,231 634,389 Total liabilities and shareholder’s equity $ 7,135,250 $ 7,027,894 Other assets Bank-owned life insurance $ 156,077 $ 151,172 Premises and equipment, net 207,659 214,415 Accrued interest receivable 19,743 20,140 Mortgage-servicing rights 8,567 8,062 Low-income housing equity investments 69,286 67,626 Real estate acquired in settlement of loans, net — 406 Real estate held for sale 9,074 — Other 43,710 24,526 $ 514,116 $ 486,347 Other liabilities Accrued expenses $ 41,264 $ 54,084 Federal and state income taxes payable 9,472 2,012 Cashier’s checks 27,498 26,906 Advance payments by borrowers 5,164 10,183 Other 52,208 31,428 $ 135,606 $ 124,613 |
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 value Gross unrealized losses Less than 12 months 12 months or longer (dollars in thousands) Number of issues Fair value Amount Number of issues Fair value Amount September 30, 2019 Available-for-sale U.S. Treasury and federal agency obligations $ 126,084 $ 822 $ (198 ) $ 126,708 — $ — $ — 4 $ 32,686 $ (198 ) Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,017,256 6,647 (4,598 ) 1,019,305 12 67,163 (252 ) 85 389,212 (4,346 ) Corporate bonds 34,926 1,350 — 36,276 — — — — — — Mortgage revenue bonds 28,459 — — 28,459 — — — — — — $ 1,206,725 $ 8,819 $ (4,796 ) $ 1,210,748 12 $ 67,163 $ (252 ) 89 $ 421,898 $ (4,544 ) Held-to-maturity Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ 132,704 $ 4,793 $ — $ 137,497 — $ — $ — — $ — $ — $ 132,704 $ 4,793 $ — $ 137,497 — $ — $ — — $ — $ — December 31, 2018 Available-for-sale U.S. Treasury and federal agency obligations $ 156,694 $ 62 $ (2,407 ) $ 154,349 5 $ 25,882 $ (208 ) 19 $ 118,405 $ (2,199 ) Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,192,169 789 (31,542 ) 1,161,416 22 129,011 (1,330 ) 145 947,890 (30,212 ) Corporate bonds 49,398 103 (369 ) 49,132 6 23,175 (369 ) — — — Mortgage revenue bonds 23,636 — — 23,636 — — — — — — $ 1,421,897 $ 954 $ (34,318 ) $ 1,388,533 33 $ 178,068 $ (1,907 ) 164 $ 1,066,295 $ (32,411 ) Held-to-maturity Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ 141,875 $ 1,446 $ (1,264 ) $ 142,057 3 $ 29,814 $ (400 ) 2 $ 31,505 $ (864 ) $ 141,875 $ 1,446 $ (1,264 ) $ 142,057 3 $ 29,814 $ (400 ) 2 $ 31,505 $ (864 ) |
Schedule of contractual maturities of available-for-sale securities | The contractual maturities of investment securities were as follows: September 30, 2019 Amortized cost Fair value (in thousands) Available-for-sale Due in one year or less $ 47,046 $ 47,021 Due after one year through five years 89,085 90,675 Due after five years through ten years 37,911 38,320 Due after ten years 15,427 15,427 189,469 191,443 Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies 1,017,256 1,019,305 Total available-for-sale securities $ 1,206,725 $ 1,210,748 Held-to-maturity Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies $ 132,704 $ 137,497 Total held-to-maturity securities $ 132,704 $ 137,497 |
Schedule of components of loans receivable | The components of loans were summarized as follows: September 30, 2019 December 31, 2018 (in thousands) Real estate: Residential 1-4 family $ 2,183,888 $ 2,143,397 Commercial real estate 810,971 748,398 Home equity line of credit 1,079,262 978,237 Residential land 15,095 13,138 Commercial construction 76,382 92,264 Residential construction 10,104 14,307 Total real estate 4,175,702 3,989,741 Commercial 638,213 587,891 Consumer 269,741 266,002 Total loans 5,083,656 4,843,634 Less: Deferred fees and discounts 680 (613 ) Allowance for loan losses (53,040 ) (52,119 ) Total loans, net $ 5,031,296 $ 4,790,902 |
Schedule of allowance for loan losses | The allowance for loan losses (balances and changes) and financing receivables were as follows: (in thousands) Residential 1-4 family Commercial real estate Home Residential land Commercial construction Residential construction Commercial loans Consumer loans Total Three months ended September 30, 2019 Allowance for loan losses: Beginning balance $ 2,015 $ 15,811 $ 6,881 $ 537 $ 2,046 $ 2 $ 13,073 $ 18,060 $ 58,425 Charge-offs (7 ) — (13 ) — — — (4,900 ) (5,311 ) (10,231 ) Recoveries 27 — 4 28 — — 726 746 1,531 Provision (56 ) (396 ) 135 (104 ) 196 1 (517 ) 4,056 3,315 Ending balance $ 1,979 $ 15,415 $ 7,007 $ 461 $ 2,242 $ 3 $ 8,382 $ 17,551 $ 53,040 Three months ended September 30, 2018 Allowance for loan losses: Beginning balance $ 2,939 $ 15,298 $ 7,334 $ 642 $ 4,616 $ 4 $ 10,161 $ 11,809 $ 52,803 Charge-offs — — (80 ) (1 ) — — (788 ) (4,508 ) (5,377 ) Recoveries 5 — 71 122 — — 105 365 668 Provision (623 ) (1,033 ) (347 ) (296 ) (356 ) — 1,255 7,433 6,033 Ending balance $ 2,321 $ 14,265 $ 6,978 $ 467 $ 4,260 $ 4 $ 10,733 $ 15,099 $ 54,127 Nine months ended September 30, 2019 Allowance for loan losses: Beginning balance $ 1,976 $ 14,505 $ 6,371 $ 479 $ 2,790 $ 4 $ 9,225 $ 16,769 $ 52,119 Charge-offs (26 ) — (32 ) (4 ) — — (6,012 ) (15,972 ) (22,046 ) Recoveries 644 — 13 42 — — 2,187 2,208 5,094 Provision (615 ) 910 655 (56 ) (548 ) (1 ) 2,982 14,546 17,873 Ending balance $ 1,979 $ 15,415 $ 7,007 $ 461 $ 2,242 $ 3 $ 8,382 $ 17,551 $ 53,040 September 30, 2019 Ending balance: individually evaluated for impairment $ 906 $ 7 $ 500 $ — $ — $ — $ 905 $ 504 $ 2,822 Ending balance: collectively evaluated for impairment $ 1,073 $ 15,408 $ 6,507 $ 461 $ 2,242 $ 3 $ 7,477 $ 17,047 $ 50,218 Financing Receivables: Ending balance $ 2,183,888 $ 810,971 $ 1,079,262 $ 15,095 $ 76,382 $ 10,104 $ 638,213 $ 269,741 $ 5,083,656 Ending balance: individually evaluated for impairment $ 16,556 $ 877 $ 12,909 $ 3,194 $ — $ — $ 9,370 $ 558 $ 43,464 Ending balance: collectively evaluated for impairment $ 2,167,332 $ 810,094 $ 1,066,353 $ 11,901 $ 76,382 $ 10,104 $ 628,843 $ 269,183 $ 5,040,192 Nine months ended September 30, 2018 Allowance for loan losses: Beginning balance $ 2,902 $ 15,796 $ 7,522 $ 896 $ 4,671 $ 12 $ 10,851 $ 10,987 $ 53,637 Charge-offs (31 ) — (224 ) (18 ) — — (1,930 ) (12,628 ) (14,831 ) Recoveries 73 — 98 173 — — 1,555 1,085 2,984 Provision (623 ) (1,531 ) (418 ) (584 ) (411 ) (8 ) 257 15,655 12,337 Ending balance $ 2,321 $ 14,265 $ 6,978 $ 467 $ 4,260 $ 4 $ 10,733 $ 15,099 $ 54,127 December 31, 2018 Ending balance: individually evaluated for impairment $ 876 $ 7 $ 701 $ 6 $ — $ — $ 628 $ 4 $ 2,222 Ending balance: collectively evaluated for impairment $ 1,100 $ 14,498 $ 5,670 $ 473 $ 2,790 $ 4 $ 8,597 $ 16,765 $ 49,897 Financing Receivables: Ending balance $ 2,143,397 $ 748,398 $ 978,237 $ 13,138 $ 92,264 $ 14,307 $ 587,891 $ 266,002 $ 4,843,634 Ending balance: individually evaluated for impairment $ 16,494 $ 915 $ 14,800 $ 2,059 $ — $ — $ 5,340 $ 89 $ 39,697 Ending balance: collectively evaluated for impairment $ 2,126,903 $ 747,483 $ 963,437 $ 11,079 $ 92,264 $ 14,307 $ 582,551 $ 265,913 $ 4,803,937 |
Schedule of credit risk profile by internally assigned grade for loans | The credit risk profile by internally assigned grade for loans was as follows: September 30, 2019 December 31, 2018 (in thousands) Commercial real estate Commercial construction Commercial Total Commercial real estate Commercial construction Commercial Total Grade: Pass $ 723,864 $ 74,093 $ 593,952 $ 1,391,909 $ 658,288 $ 89,974 $ 547,640 $ 1,295,902 Special mention 18,038 — 25,822 43,860 32,871 — 11,598 44,469 Substandard 69,069 2,289 14,753 86,111 57,239 2,290 28,653 88,182 Doubtful — — 3,686 3,686 — — — — Loss — — — — — — — — Total $ 810,971 $ 76,382 $ 638,213 $ 1,525,566 $ 748,398 $ 92,264 $ 587,891 $ 1,428,553 |
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 days past due 60-89 days past due Greater than 90 days Total past due Current Total financing receivables Recorded investment> 90 days and accruing September 30, 2019 Real estate: Residential 1-4 family $ 2,162 $ 807 $ 2,452 $ 5,421 $ 2,178,467 $ 2,183,888 $ — Commercial real estate 347 — — 347 810,624 810,971 — Home equity line of credit 736 814 2,127 3,677 1,075,585 1,079,262 — Residential land — — 25 25 15,070 15,095 — Commercial construction — — — — 76,382 76,382 — Residential construction — — — — 10,104 10,104 — Commercial 359 174 1,280 1,813 636,400 638,213 — Consumer 4,230 2,923 2,461 9,614 260,127 269,741 — Total loans $ 7,834 $ 4,718 $ 8,345 $ 20,897 $ 5,062,759 $ 5,083,656 $ — December 31, 2018 Real estate: Residential 1-4 family $ 3,757 $ 2,773 $ 2,339 $ 8,869 $ 2,134,528 $ 2,143,397 $ — Commercial real estate — — — — 748,398 748,398 — Home equity line of credit 1,139 681 2,720 4,540 973,697 978,237 — Residential land 9 — 319 328 12,810 13,138 — Commercial construction — — — — 92,264 92,264 — Residential construction — — — — 14,307 14,307 — Commercial 315 281 548 1,144 586,747 587,891 — Consumer 5,220 3,166 2,702 11,088 254,914 266,002 — Total loans $ 10,440 $ 6,901 $ 8,628 $ 25,969 $ 4,817,665 $ 4,843,634 $ — |
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, accruing loans 90 days or more past due and troubled debt restructuring (TDR) loans was as follows: (in thousands) September 30, 2019 December 31, 2018 Real estate: Residential 1-4 family $ 12,076 $ 12,037 Commercial real estate — — Home equity line of credit 7,859 6,348 Residential land 457 436 Commercial construction — — Residential construction — — Commercial 7,004 4,278 Consumer 4,632 4,196 Total nonaccrual loans $ 32,028 $ 27,295 Real estate: Residential 1-4 family $ — $ — Commercial real estate — — Home equity line of credit — — Residential land — — Commercial construction — — Residential construction — — Commercial — — Consumer — — Total accruing loans 90 days or more past due $ — $ — Real estate: Residential 1-4 family $ 9,981 $ 10,194 Commercial real estate 877 915 Home equity line of credit 10,686 11,597 Residential land 2,737 1,622 Commercial construction — — Residential construction — — Commercial 2,564 1,527 Consumer 58 62 Total troubled debt restructured loans not included above $ 26,903 $ 25,917 |
Schedule of the carrying amount and the total unpaid principal balance of impaired loans, with and without recorded allowance for loans losses | The total carrying amount and the total unpaid principal balance of impaired loans were as follows: September 30, 2019 Three months ended September 30, 2019 Nine months ended September 30, 2019 (in thousands) Recorded investment Unpaid principal balance Related Allowance Average recorded investment Interest income recognized* Average recorded investment Interest income recognized* With no related allowance recorded Real estate: Residential 1-4 family $ 8,277 $ 8,877 $ — $ 8,562 $ 175 $ 8,515 $ 422 Commercial real estate — — — — — — — Home equity line of credit 1,806 1,967 — 1,797 12 2,091 78 Residential land 3,194 3,398 — 3,205 40 2,507 90 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 6,749 11,894 — 4,812 239 4,470 239 Consumer 2 2 — 21 4 27 4 $ 20,028 $ 26,138 $ — $ 18,397 $ 470 $ 17,610 $ 833 With an allowance recorded Real estate: Residential 1-4 family $ 8,279 $ 8,332 $ 906 $ 8,296 $ 86 $ 8,377 $ 265 Commercial real estate 877 877 7 881 9 894 28 Home equity line of credit 11,103 11,133 500 11,332 143 11,606 425 Residential land — — — — — 36 — Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 2,621 2,621 905 8,330 38 8,026 94 Consumer 556 556 504 556 12 301 14 $ 23,436 $ 23,519 $ 2,822 $ 29,395 $ 288 $ 29,240 $ 826 Total Real estate: Residential 1-4 family $ 16,556 $ 17,209 $ 906 $ 16,858 $ 261 $ 16,892 $ 687 Commercial real estate 877 877 7 881 9 894 28 Home equity line of credit 12,909 13,100 500 13,129 155 13,697 503 Residential land 3,194 3,398 — 3,205 40 2,543 90 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 9,370 14,515 905 13,142 277 12,496 333 Consumer 558 558 504 577 16 328 18 $ 43,464 $ 49,657 $ 2,822 $ 47,792 $ 758 $ 46,850 $ 1,659 December 31, 2018 Three months ended September 30, 2018 Nine months ended September 30, 2018 (in thousands) Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized* Average recorded investment Interest income recognized* With no related allowance recorded Real estate: Residential 1-4 family $ 7,822 $ 8,333 $ — $ 8,940 $ 239 $ 8,779 $ 396 Commercial real estate — — — — — — — Home equity line of credit 2,743 3,004 — 2,234 23 2,103 35 Residential land 2,030 2,228 — 1,773 6 1,358 16 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 3,722 4,775 — 3,915 6 3,099 26 Consumer 32 32 — 33 — 18 — $ 16,349 $ 18,372 $ — $ 16,895 $ 274 $ 15,357 $ 473 With an allowance recorded Real estate: Residential 1-4 family $ 8,672 $ 8,875 $ 876 $ 8,820 $ 84 $ 8,909 $ 274 Commercial real estate 915 915 7 985 11 997 32 Home equity line of credit 12,057 12,086 701 12,090 111 10,083 288 Residential land 29 29 6 20 — 45 3 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 1,618 1,618 628 1,774 28 1,824 94 Consumer 57 57 4 57 1 58 3 $ 23,348 $ 23,580 $ 2,222 $ 23,746 $ 235 $ 21,916 $ 694 Total Real estate: Residential 1-4 family $ 16,494 $ 17,208 $ 876 $ 17,760 $ 323 $ 17,688 $ 670 Commercial real estate 915 915 7 985 11 997 32 Home equity line of credit 14,800 15,090 701 14,324 134 12,186 323 Residential land 2,059 2,257 6 1,793 6 1,403 19 Commercial construction — — — — — — — Residential construction — — — — — — — Commercial 5,340 6,393 628 5,689 34 4,923 120 Consumer 89 89 4 90 1 76 3 $ 39,697 $ 41,952 $ 2,222 $ 40,641 $ 509 $ 37,273 $ 1,167 * Since loan was classified as impaired. |
Schedule of loan modifications | Loan modifications that occurred during the third quarters and first nine months of 2019 and 2018 were as follows: Loans modified as a TDR Three months ended September 30, 2019 Nine months ended September 30, 2019 (dollars in thousands) Number of contracts Outstanding recorded (as of period end) 1 Related allowance (as of period end) Number of contracts Outstanding recorded investment (as of period end) 1 Related allowance (as of period end) Troubled debt restructurings Real estate: Residential 1-4 family 1 $ 324 $ — 10 $ 1,563 $ 165 Commercial real estate — — — — — — Home equity line of credit — — — 3 429 85 Residential land 1 350 — 3 1,169 — Commercial construction — — — — — — Residential construction — — — — — — Commercial 3 275 58 6 1,761 218 Consumer — — — — — — 5 $ 949 $ 58 22 $ 4,922 $ 468 Loans modified as a TDR Three months ended September 30, 2018 Nine months ended September 30, 2018 (dollars in thousands) Number of contracts Outstanding recorded 1 Related allowance Number of contracts Outstanding recorded (as of period end) 1 Related allowance Troubled debt restructurings Real estate: Residential 1-4 family 2 $ 427 $ 19 2 $ 427 $ 19 Commercial real estate — — — — — — Home equity line of credit 16 1,571 283 52 6,540 930 Residential land 2 1,343 — 2 1,343 — Commercial construction — — — — — — Residential construction — — — — — — Commercial 6 255 174 13 2,381 218 Consumer — — — — — — 26 $ 3,596 $ 476 69 $ 10,691 $ 1,167 1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included. There were no loans modified in TDRs that experienced a payment default of 90 days or more during the third quarter and first nine months of 2019 . Loans modified in TDRs that experienced a payment default of 90 days or more during the third quarter and first nine months of 2018 , and for which the payment of default occurred within one year of the modification, were as follows: Three months ended September 30, 2018 Nine months ended September 30, 2018 (dollars in thousands) Number of contracts Outstanding 1 Number of contracts Outstanding (as of period end) 1 TDRs that defaulted during the period within twelve months of their modification date Real estate: Residential 1-4 family — $ — — $ — Commercial real estate — — — — Home equity line of credit — — 1 81 Residential land — — — — Commercial construction — — — — Residential construction — — — — Commercial — — 1 291 Consumer — — — — — $ — 2 $ 372 1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included. |
Schedule of amortized intangible assets | Changes in the carrying value of MSRs were as follows: (in thousands) Gross Accumulated amortization Valuation allowance Net September 30, 2019 $ 20,413 $ (11,846 ) $ — $ 8,567 December 31, 2018 18,556 (10,494 ) — 8,062 Changes related to MSRs were as follows: Three months ended September 30, Nine months ended September 30 (in thousands) 2019 2018 2019 2018 Mortgage servicing rights Beginning balance $ 8,103 $ 8,509 $ 8,062 $ 8,639 Amount capitalized 995 305 1,857 1,032 Amortization (531 ) (388 ) (1,352 ) (1,245 ) Other-than-temporary impairment — — — — Carrying amount before valuation allowance 8,567 8,426 8,567 8,426 Valuation allowance for mortgage servicing rights Beginning balance — — — — Provision (recovery) — — — — Other-than-temporary impairment — — — — Ending balance — — — — Net carrying value of mortgage servicing rights $ 8,567 $ 8,426 $ 8,567 $ 8,426 |
Schedule of key assumptions used in estimating fair value | Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows: (dollars in thousands) September 30, 2019 December 31, 2018 Unpaid principal balance $ 1,232,240 $ 1,188,514 Weighted average note rate 3.99 % 3.98 % Weighted average discount rate 9.3 % 10.0 % Weighted average prepayment speed 12.8 % 6.5 % 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: 2019 2018 Risk-free interest rate 2.48 % 2.29 % Expected life in years 3 3 Expected volatility 15.8 % 17.0 % Range of expected volatility for Peer Group 15.0% to 73.2% 15.1% to 26.2% Grant date fair value (per share) $41.07 $38.20 The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) ($ in thousands) Fair value Valuation technique Significant unobservable input Range Weighted Average September 30, 2019 Home equity line of credit $ 199 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Residential land 25 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Commercial 3,687 Discounted cash flow Expected cash flows 3.9%-6.8% 4.6% Total loans $ 3,911 December 31, 2018 Home equity line of credit $ 77 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Total loans $ 77 Real estate acquired in settlement of loans $ 186 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) (1) Represent percent of outstanding principal balance. (2) N/A - Not applicable. There is one asset in each fair value measurement type. |
Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets | The sensitivity analysis of fair value of MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows: (dollars in thousands) September 30, 2019 December 31, 2018 Prepayment rate: 25 basis points adverse rate change $ (1,058 ) $ (250 ) 50 basis points adverse rate change (2,093 ) (566 ) Discount rate: 25 basis points adverse rate change (90 ) (139 ) 50 basis points adverse rate change (180 ) (275 ) |
Schedule of securities sold under agreements to repurchase | The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties: (in millions) Gross amount of recognized liabilities Gross amount offset in the Balance Sheets Net amount of liabilities presented in the Balance Sheets Repurchase agreements September 30, 2019 $ 91 $ — $ 91 December 31, 2018 65 — 65 Gross amount not offset in the Balance Sheets (in millions) Net amount of liabilities presented in the Balance Sheets Financial instruments Cash collateral pledged Commercial account holders September 30, 2019 $ 91 $ 111 $ — December 31, 2018 65 92 — |
Schedule of notional and fair value of derivatives | The notional amount and fair value of ASB’s derivative financial instruments were as follows: September 30, 2019 December 31, 2018 (in thousands) Notional amount Fair value Notional amount Fair value Interest rate lock commitments $ 42,073 $ 470 $ 10,180 $ 91 Forward commitments 55,791 (76 ) 10,132 (43 ) |
Schedule of derivative financial instruments | ASB’s derivative financial instruments, their fair values and balance sheet location were as follows: Derivative Financial Instruments Not Designated as Hedging Instruments 1 September 30, 2019 December 31, 2018 (in thousands) Asset derivatives Liability derivatives Asset derivatives Liability Interest rate lock commitments $ 477 $ 7 $ 91 $ — Forward commitments 9 85 — 43 $ 486 $ 92 $ 91 $ 43 1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the balance sheets. |
Schedule of derivative financial instruments and net gain or loss | The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in ASB’s statements of income: Derivative Financial Instruments Not Designated as Hedging Instruments Location of net gains (losses) recognized in the Statements of Income Three months ended September 30, Nine months ended September 30 (in thousands) 2019 2018 2019 2018 Interest rate lock commitments Mortgage banking income $ (3 ) $ (248 ) $ 379 $ (131 ) Forward commitments Mortgage banking income 39 62 (33 ) 24 $ 36 $ (186 ) $ 346 $ (107 ) |
Credit agreements (Tables)
Credit agreements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | On May 13, 2019, the Utilities issued, through a private placement pursuant to separate Note Purchase Agreements (the Note Purchase Agreements), the following unsecured notes bearing taxable interest (the Unsecured Notes): Series 2019A Aggregate principal amount $50 million Fixed coupon interest rate 4.21% Maturity date May 15, 2034 Principal amount by company: Hawaiian Electric $30 million Hawaii Electric Light $10 million Maui Electric $10 million The Unsecured Notes include substantially the same financial covenants and customary conditions as Hawaiian Electric’s credit agreement. Hawaiian Electric is also a party as guarantor under the Note Purchase Agreements entered into by Hawaii Electric Light and Maui Electric. The Unsecured Notes may be prepaid in whole or in part at any time at the prepayment price of the principal amount plus a “Make-Whole Amount,” as defined in the Note Purchase Agreements. On May 15, 2019, proceeds from the sale were applied to redeem the Utilities’ 2004 junior subordinated deferrable interest debentures at par value: 2004 Junior subordinated deferrable interest debentures redeemed Aggregate principal amount $51.5 million Fixed coupon interest rate 6.50% Maturity date May 15, 2034 Principal amount by company: Hawaiian Electric $31.5 million Hawaii Electric Light $10 million Maui Electric $10 million On July 18, 2019, the Department of Budget and Finance of the State of Hawaii (DBF) for the benefit of Hawaiian Electric and Hawaii Electric Light, issued, at par: Refunding Series 2019 Special Purpose Revenue Bonds Aggregate principal amount $150 million Fixed coupon interest rate 3.20% Maturity date July 1, 2039 DBF loaned the proceeds to: Hawaiian Electric $90 million Hawaii Electric Light $60 million On July 26, 2019, proceeds from the sale were applied to redeem at par, bonds previously issued by the DBF for the benefit of Hawaiian Electric and Hawaii Electric Light: Series 2009 Special Purpose Revenue Bonds Redeemed Aggregate principal amount $150 million Fixed coupon interest rate 6.50% Maturity date July 1, 2039 Principal amount by company: Hawaiian Electric $90 million Hawaii Electric Light $60 million On October 10, 2019, the DBF for the benefit of Hawaiian Electric, Hawaii Electric Light and Maui Electric, issued, at par: Series 2019 Special Purpose Revenue Bonds Aggregate principal amount $80 million Fixed coupon interest rate 3.50% Maturity date October 1, 2049 DBF loaned the proceeds to: Hawaiian Electric $70 million Hawaii Electric Light $2.5 million Maui Electric $7.5 million |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | Amounts related to the Company’s total lease cost and cash flows arising from lease transaction are as follows: HEI consolidated Hawaiian Electric consolidated Three months ended September 30, 2019 (in thousands) Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total Operating lease cost $ 2,892 $ 15,478 $ 18,370 $ 1,542 $ 15,478 $ 17,020 Variable lease cost 3,577 57,912 61,489 2,836 57,912 60,748 Total lease cost $ 6,469 $ 73,390 $ 79,859 $ 4,378 $ 73,390 $ 77,768 Other information Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases $ 2,687 $ 16,795 $ 19,482 $ 1,455 $ 16,795 $ 18,250 HEI consolidated Hawaiian Electric consolidated Nine months ended September 30, 2019 Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total Operating lease cost $ 8,632 $ 46,434 $ 55,066 $ 4,551 $ 46,434 $ 50,985 Variable lease cost 9,777 143,177 152,954 7,686 143,177 150,863 Total lease cost $ 18,409 $ 189,611 $ 208,020 $ 12,237 $ 189,611 $ 201,848 Other information Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases $ 7,867 $ 46,162 $ 54,029 $ 4,263 $ 46,162 $ 50,425 Weighted-average remaining lease term—operating leases (in years) 6.5 3.0 3.7 4.7 3.0 3.2 Weighted-average discount rate—operating leases 3.55 % 4.08 % 3.98 % 4.17 % 4.08 % 4.09 % |
Schedule of Annual Undiscounted Cash Flows on Operating Lease Liabilities | The following table summarizes the maturity of our operating lease liabilities as of September 30, 2019 : HEI consolidated Hawaiian Electric consolidated (in millions) Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total 2019 (remaining months) $ 3 $ 17 $ 20 $ 2 $ 17 $ 19 2020 11 63 74 6 63 69 2021 9 63 72 5 63 68 2022 6 42 48 2 42 44 2023 4 — 4 2 — 2 2024 3 — 3 1 — 1 Thereafter 9 — 9 2 — 2 Total lease payments 45 185 230 20 185 205 Less: Imputed interest (6 ) (11 ) (17 ) (2 ) (11 ) (13 ) Total present value of lease payments $ 39 $ 174 $ 213 $ 18 $ 174 $ 192 |
Schedule of Future Minimum Rental Payments for Operating Leases Under 842 | The future minimum lease obligations under operating leases in effect as of December 31, 2018, having a term in excess of one year as determined prior to the adoption of ASC 842 are as follows: HEI consolidated Hawaiian Electric consolidated (in millions) Other leases PPAs classified as leases Total Other leases PPAs classified as leases Total 2019 $ 11 $ 63 $ 74 $ 6 $ 63 $ 69 2020 9 63 72 6 63 69 2021 8 63 71 5 63 68 2022 5 42 47 2 42 44 2023 4 — 4 2 — 2 Thereafter 12 — 12 3 — 3 Total lease payments $ 49 $ 231 $ 280 $ 24 $ 231 $ 255 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 $ (24,423 ) $ (436 ) $ (25,751 ) $ (50,610 ) $ 99 Current period other comprehensive income (loss) 27,368 (1,663 ) 532 26,237 73 Balance, September 30, 2019 $ 2,945 $ (2,099 ) $ (25,219 ) $ (24,373 ) $ 172 Balance, December 31, 2017 $ (14,951 ) $ — $ (26,990 ) $ (41,941 ) $ (1,219 ) Current period other comprehensive income (loss) (22,768 ) — 1,581 (21,187 ) 85 Balance, September 30, 2018 $ (37,719 ) $ — $ (25,409 ) $ (63,128 ) $ (1,134 ) |
Schedule of reclassifications out of accumulated other comprehensive income/(loss) | Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Three months ended September 30 Nine months ended September 30 Affected line item in the (in thousands) 2019 2018 2019 2018 Statements of Income / Balance Sheets HEI consolidated Net realized gains on securities included in net income $ (478 ) $ — $ (478 ) $ — Revenues-bank (gains on sale of investment securities, net) Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 2,615 5,259 7,621 15,755 See Note 9 for additional details Impact of D&Os of the PUC included in regulatory assets (2,493 ) (4,725 ) (7,089 ) (14,174 ) See Note 9 for additional details Total reclassifications $ (356 ) $ 534 $ 54 $ 1,581 Hawaiian Electric consolidated Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost $ 2,519 $ 4,753 $ 7,162 $ 14,259 See Note 9 for additional details Impact of D&Os of the PUC included in regulatory assets (2,493 ) (4,725 ) (7,089 ) (14,174 ) See Note 9 for additional details Total reclassifications $ 26 $ 28 $ 73 $ 85 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following tables disaggregate revenues by major source, timing of revenue recognition, and segment: Three months ended September 30, 2019 Nine months ended September 30, 2019 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 230,051 $ — $ — $ 230,051 $ 601,664 $ — $ — $ 601,664 Electric energy sales - commercial 230,411 — — 230,411 635,097 — — 635,097 Electric energy sales - large light and power 248,457 — — 248,457 679,252 — — 679,252 Electric energy sales - other 4,081 — — 4,081 11,933 — — 11,933 Bank fees — 12,111 — 12,111 — 34,976 — 34,976 Total revenues from contracts with customers 713,000 12,111 — 725,111 1,927,946 34,976 — 1,962,922 Revenues from other sources Regulatory revenue (30,800 ) — — (30,800 ) (44,953 ) — — (44,953 ) Bank interest and dividend income — 66,859 — 66,859 — 201,502 — 201,502 Other bank noninterest income — 4,231 — 4,231 — 11,462 — 11,462 Other 6,130 — 4 6,134 17,616 — 86 17,702 Total revenues from other sources (24,670 ) 71,090 4 46,424 (27,337 ) 212,964 86 185,713 Total revenues $ 688,330 $ 83,201 $ 4 $ 771,535 $ 1,900,609 $ 247,940 $ 86 $ 2,148,635 Timing of revenue recognition Services/goods transferred at a point in time $ — $ 12,111 $ — $ 12,111 $ — $ 34,976 $ — $ 34,976 Services/goods transferred over time 713,000 — — 713,000 1,927,946 — — 1,927,946 Total revenues from contracts with customers $ 713,000 $ 12,111 $ — $ 725,111 $ 1,927,946 $ 34,976 $ — $ 1,962,922 Three months ended September 30, 2018 Nine months ended September 30, 2018 (in thousands) Electric utility Bank Other Total Electric utility Bank Other Total Revenues from contracts with customers Electric energy sales - residential $ 222,196 $ — $ — $ 222,196 $ 586,002 $ — $ — $ 586,002 Electric energy sales - commercial 229,476 — — 229,476 624,643 — — 624,643 Electric energy sales - large light and power 242,457 — — 242,457 649,454 — — 649,454 Electric energy sales - other 4,296 — — 4,296 12,324 — — 12,324 Bank fees — 11,743 — 11,743 — 34,797 — 34,797 Total revenues from contracts with customers 698,425 11,743 — 710,168 1,872,423 34,797 — 1,907,220 Revenues from other sources Regulatory revenue (13,572 ) — — (13,572 ) (13,465 ) — — (13,465 ) Bank interest and dividend income — 65,185 — 65,185 — 190,448 — 190,448 Other bank noninterest income — 3,568 — 3,568 — 7,774 — 7,774 Other 2,556 — 143 2,699 7,004 — 218 7,222 Total revenues from other sources (11,016 ) 68,753 143 57,880 (6,461 ) 198,222 218 191,979 Total revenues $ 687,409 $ 80,496 $ 143 $ 768,048 $ 1,865,962 $ 233,019 $ 218 $ 2,099,199 Timing of revenue recognition Services/goods transferred at a point in time $ 832 $ 11,743 $ — $ 12,575 $ 2,380 $ 34,797 $ — $ 37,177 Services/goods transferred over time 697,593 — — 697,593 1,870,043 — — 1,870,043 Total revenues from contracts with customers $ 698,425 $ 11,743 $ — $ 710,168 $ 1,872,423 $ 34,797 $ — $ 1,907,220 |
Retirement benefits (Tables)
Retirement benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit cost for consolidated HEI | The components of net periodic pension costs (NPPC) and net periodic benefit costs (NPBC) for HEI consolidated and Hawaiian Electric consolidated were as follows: Three months ended September 30 Nine months ended September 30 Pension benefits Other benefits Pension benefits Other benefits (in thousands) 2019 2018 2019 2018 2019 2018 2019 2018 HEI consolidated Service cost $ 15,800 $ 17,223 $ 573 $ 680 $ 46,564 $ 51,764 $ 1,656 $ 2,041 Interest cost 21,150 19,340 2,006 1,986 63,216 58,033 6,000 5,947 Expected return on plan assets (27,991 ) (27,237 ) (3,101 ) (3,224 ) (83,988 ) (81,715 ) (9,273 ) (9,683 ) Amortization of net prior service gain (10 ) (11 ) (451 ) (451 ) (32 ) (32 ) (1,355 ) (1,354 ) Amortization of net actuarial (gains) losses 3,989 7,527 (3 ) 25 11,667 22,556 (10 ) 71 Net periodic pension/benefit cost (return) 12,938 16,842 (976 ) (984 ) 37,427 50,606 (2,982 ) (2,978 ) Impact of PUC D&Os 11,554 7,785 821 953 36,111 17,621 2,443 3,048 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 24,492 $ 24,627 $ (155 ) $ (31 ) $ 73,538 $ 68,227 $ (539 ) $ 70 Hawaiian Electric consolidated Service cost $ 15,344 $ 16,840 $ 568 $ 676 $ 45,346 $ 50,520 $ 1,643 $ 2,028 Interest cost 19,560 17,824 1,920 1,907 58,388 53,471 5,755 5,721 Expected return on plan assets (26,146 ) (25,593 ) (3,064 ) (3,178 ) (78,474 ) (76,777 ) (9,135 ) (9,534 ) Amortization of net prior service (gain) cost 2 2 (451 ) (451 ) 6 6 (1,353 ) (1,353 ) Amortization of net actuarial loss 3,841 6,826 — 25 10,993 20,477 — 74 Net periodic pension/benefit cost (return) 12,601 15,899 (1,027 ) (1,021 ) 36,259 47,697 (3,090 ) (3,064 ) Impact of PUC D&Os 11,554 7,785 821 953 36,111 17,621 2,443 3,048 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 24,155 $ 23,684 $ (206 ) $ (68 ) $ 72,370 $ 65,318 $ (647 ) $ (16 ) |
Share-based compensation (Table
Share-based compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of share-based compensation expense and related income tax benefit | Share-based compensation expense and the related income tax benefit were as follows: Three months ended September 30 Nine months ended September 30 (in millions) 2019 2018 2019 2018 HEI consolidated Share-based compensation expense 1 $ 2.3 $ 1.5 $ 8.1 $ 5.9 Income tax benefit 0.3 0.2 1.2 0.9 Hawaiian Electric consolidated Share-based compensation expense 1 0.8 0.6 2.6 2.1 Income tax benefit 0.1 0.1 0.5 0.4 1 For the three and nine months ended September 30, 2019 and 2018, the Company has not capitalized any share-based compensation. |
Schedule of common stock granted to a nonemployee director under the 2011 Director Plan | HEI granted HEI common stock to nonemployee directors under the 2011 Director Plan as follows: Three months ended September 30 Nine months ended September 30 (dollars in millions) 2019 2018 2019 2018 Shares granted — — 35,580 38,821 Fair value $ — $ — $ 1.5 $ 1.3 Income tax benefit — — 0.4 0.3 |
Schedule of restricted stock units | Information about HEI’s grants of restricted stock units was as follows: Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 208,625 $ 35.28 200,856 $ 33.03 200,358 $ 33.05 197,047 $ 31.53 Granted 1,006 44.16 1,789 35.61 95,565 37.75 93,853 34.12 Vested (101 ) 36.27 — — (76,813 ) 32.61 (75,683 ) 30.56 Forfeited (2,889 ) 35.44 (2,287 ) 32.83 (12,469 ) 34.20 (14,859 ) 32.35 Outstanding, end of period 206,641 $ 35.32 200,358 $ 33.05 206,641 $ 35.32 200,358 $ 33.05 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ 0.1 $ 3.6 $ 3.2 (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 September 30 Nine months ended September 30 2019 2018 2019 2018 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 98,311 $ 39.61 66,177 $ 38.82 65,578 $ 38.81 32,904 $ 39.51 Granted 568 41.07 878 38.20 35,215 41.07 37,819 38.21 Vested (issued or unissued and cancelled) — — — — — — — — Forfeited (2,477 ) 39.64 (1,490 ) 38.85 (4,391 ) 39.19 (5,158 ) 38.84 Outstanding, end of period 96,402 $ 39.62 65,565 $ 38.81 96,402 $ 39.62 65,565 $ 38.81 Total weighted-average grant-date fair value of shares granted (in millions) $ — $ — $ 1.4 $ 1.4 (1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. |
Schedule of Long-Term Incentive Program fair value awards granted | Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows: (dollars in thousands) September 30, 2019 December 31, 2018 Unpaid principal balance $ 1,232,240 $ 1,188,514 Weighted average note rate 3.99 % 3.98 % Weighted average discount rate 9.3 % 10.0 % Weighted average prepayment speed 12.8 % 6.5 % 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: 2019 2018 Risk-free interest rate 2.48 % 2.29 % Expected life in years 3 3 Expected volatility 15.8 % 17.0 % Range of expected volatility for Peer Group 15.0% to 73.2% 15.1% to 26.2% Grant date fair value (per share) $41.07 $38.20 The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) ($ in thousands) Fair value Valuation technique Significant unobservable input Range Weighted Average September 30, 2019 Home equity line of credit $ 199 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Residential land 25 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Commercial 3,687 Discounted cash flow Expected cash flows 3.9%-6.8% 4.6% Total loans $ 3,911 December 31, 2018 Home equity line of credit $ 77 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Total loans $ 77 Real estate acquired in settlement of loans $ 186 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) (1) Represent percent of outstanding principal balance. (2) N/A - Not applicable. There is one asset in each fair value measurement type. |
Schedule of Long-Term Incentive Plan (LTIP) linked to other performance conditions | Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Shares (1) Shares (1) Shares (1) Shares (1) Outstanding, beginning of period 407,090 $ 35.12 264,707 $ 33.79 276,169 $ 33.80 131,616 $ 33.47 Granted 2,275 44.05 3,511 35.58 140,855 37.78 151,277 34.12 Vested — — — — — — — — Increase above target 11,131 33.49 — — 11,131 33.49 — — Forfeited (9,911 ) 35.24 (5,958 ) 33.80 (17,570 ) 34.66 (20,633 ) 33.80 Outstanding, end of period 410,585 $ 35.12 262,260 $ 33.82 410,585 $ 35.12 262,260 $ 33.82 Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) $ 0.1 $ 0.1 $ 5.3 $ 5.2 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Cash flows (Tables)
Cash flows (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash and noncash activity | Nine months ended September 30 2019 2018 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates, net of amounts capitalized $ 75 $ 67 Income taxes paid (including refundable credits) 55 50 Income taxes refunded (including refundable credits) 4 — Hawaiian Electric consolidated Interest paid to non-affiliates 45 44 Income taxes paid (including refundable credits) 55 47 Income taxes refunded (including refundable credits) 4 — Supplemental disclosures of noncash activities HEI consolidated Property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 7 6 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 37 42 Common stock issued (gross) for director and executive/management compensation (financing) 1 5 4 Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) 9 — Obligations to fund low income housing investments (investing) 6 12 Transfer of retail repurchase agreements to deposit liabilities (financing) — 102 Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 7 6 Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 34 28 1 The amounts shown represent the market value of common stock issued for director and executive/management compensation and withheld to satisfy statutory tax liabilities. |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of estimated fair values of certain of the Company's financial instruments | The following table presents the carrying or notional amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments. For stock in Federal Home Loan Bank, the carrying amount is a reasonable estimate of fair value because it can only be redeemed at par. Estimated fair value Carrying or notional amount Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (in thousands) (Level 1) (Level 2) (Level 3) Total September 30, 2019 Financial assets HEI consolidated Available-for-sale investment securities $ 1,210,748 $ — $ 1,182,289 $ 28,459 $ 1,210,748 Held-to-maturity investment securities 132,704 — 137,497 — 137,497 Stock in Federal Home Loan Bank 9,953 — 9,953 — 9,953 Loans, net 5,048,411 — 17,164 5,121,275 5,138,439 Mortgage servicing rights 8,567 — — 11,485 11,485 Derivative assets 58,473 2 484 — 486 Financial liabilities HEI consolidated Deposit liabilities 783,308 — 779,370 — 779,370 Short-term borrowings—other than bank 163,836 — 163,836 — 163,836 Other bank borrowings 129,190 — 129,187 — 129,187 Long-term debt, net—other than bank 1,885,454 — 2,085,217 — 2,085,217 Derivative liabilities 63,391 18 2,901 — 2,919 Hawaiian Electric consolidated Short-term borrowings 112,353 — 112,353 — 112,353 Long-term debt, net 1,418,220 — 1,594,271 — 1,594,271 December 31, 2018 Financial assets HEI consolidated Available-for-sale investment securities 1,388,533 — 1,364,897 23,636 1,388,533 Held-to-maturity investment securities 141,875 — 142,057 — 142,057 Stock in Federal Home Loan Bank 9,958 — 9,958 — 9,958 Loans, net 4,792,707 — 1,809 4,800,244 4,802,053 Mortgage servicing rights 8,062 — — 13,618 13,618 Derivative assets 10,180 — 91 — 91 Financial liabilities HEI consolidated Deposit liabilities 827,841 — 817,667 — 817,667 Short-term borrowings—other than bank 73,992 — 73,992 — 73,992 Other bank borrowings 110,040 — 110,037 — 110,037 Long-term debt, net—other than bank 1,879,641 — 1,904,261 — 1,904,261 Derivative liabilities 34,132 34 596 — 630 Hawaiian Electric consolidated Short-term borrowings 25,000 — 25,000 — 25,000 Long-term debt, net 1,418,802 — 1,443,968 — 1,443,968 |
Schedule of assets measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis were as follows: September 30, 2019 December 31, 2018 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 $ — $ 1,019,305 $ — $ — $ 1,161,416 $ — U.S. Treasury and federal agency obligations — 126,708 — — 154,349 — Corporate bonds — 36,276 — — 49,132 — Mortgage revenue bonds — — 28,459 — — 23,636 $ — $ 1,182,289 $ 28,459 $ — $ 1,364,897 $ 23,636 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 477 $ — $ — $ 91 $ — Forward commitments (bank segment) 1 2 7 — — — — $ 2 $ 484 $ — $ — $ 91 $ — Derivative liabilities Interest rate lock commitments (bank segment) 1 $ — $ 7 $ — $ — $ — $ — Forward commitments (bank segment) 1 18 67 — 34 9 — Interest rate swap (Other segment) 2 — 2,827 — — 587 — $ 18 $ 2,901 $ — $ 34 $ 596 $ — 1 Derivatives are carried at fair value in other assets or other liabilities in the balance sheets with changes in value included in mortgage banking income. 2 Derivatives are included in other liabilities in the balance sheets. |
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: Three months ended September 30 Nine months ended September 30 Mortgage revenue bonds 2019 2018 2019 2018 (in thousands) Beginning balance $ 28,166 $ 15,427 $ 23,636 $ 15,427 Principal payments received — — — — Purchases 293 3,657 4,823 3,657 Unrealized gain (loss) included in other comprehensive income — — — — Ending balance $ 28,459 $ 19,084 $ 28,459 $ 19,084 |
Schedule of assets measured at fair value on a nonrecurring basis | The carrying value of assets measured at fair value on a nonrecurring basis were as follows: Fair value measurements (in thousands) Balance Level 1 Level 2 Level 3 September 30, 2019 Loans $ 3,911 $ — $ — $ 3,911 December 31, 2018 Loans 77 — — 77 Real estate acquired in settlement of loans 186 — — 186 |
Schedule of significant unobservable inputs used in the fair value measurement | Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows: (dollars in thousands) September 30, 2019 December 31, 2018 Unpaid principal balance $ 1,232,240 $ 1,188,514 Weighted average note rate 3.99 % 3.98 % Weighted average discount rate 9.3 % 10.0 % Weighted average prepayment speed 12.8 % 6.5 % 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: 2019 2018 Risk-free interest rate 2.48 % 2.29 % Expected life in years 3 3 Expected volatility 15.8 % 17.0 % Range of expected volatility for Peer Group 15.0% to 73.2% 15.1% to 26.2% Grant date fair value (per share) $41.07 $38.20 The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) ($ in thousands) Fair value Valuation technique Significant unobservable input Range Weighted Average September 30, 2019 Home equity line of credit $ 199 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Residential land 25 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Commercial 3,687 Discounted cash flow Expected cash flows 3.9%-6.8% 4.6% Total loans $ 3,911 December 31, 2018 Home equity line of credit $ 77 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Total loans $ 77 Real estate acquired in settlement of loans $ 186 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) (1) Represent percent of outstanding principal balance. (2) N/A - Not applicable. There is one asset in each fair value measurement type. |
Basis of presentation (Details)
Basis of presentation (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, liability | $ 213,166 | |
Operating lease right-of-use assets | 213,910 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, liability | 192,000 | |
Operating lease right-of-use assets | $ 192,254 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, liability | $ 257,000 | |
Operating lease right-of-use assets | 257,000 | |
ASU 2016-02 | Power Purchase Agreement | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, liability | 215,000 | |
Operating lease right-of-use assets | 215,000 | |
ASU 2016-02 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, liability | 236,000 | |
Operating lease right-of-use assets | $ 236,000 |
Segment financial information_2
Segment financial information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment financial information | |||||||||
Total revenues | $ 771,535 | $ 768,048 | $ 2,148,635 | $ 2,099,199 | |||||
Income (loss) before income taxes | 78,693 | 77,233 | 189,426 | 190,091 | |||||
Income taxes (benefit) | 14,803 | 10,862 | 36,390 | 36,473 | |||||
Net income | 63,890 | 66,371 | 153,036 | 153,618 | |||||
Preferred stock dividends of subsidiaries | 471 | 471 | 1,417 | 1,417 | |||||
Net income for common stock | 63,419 | $ 42,512 | $ 45,688 | 65,900 | $ 46,054 | $ 40,247 | 151,619 | 152,201 | |
Total assets | 13,517,970 | 13,517,970 | $ 13,104,051 | ||||||
Revenues from external customers | |||||||||
Segment financial information | |||||||||
Total revenues | 771,535 | 768,048 | 2,148,635 | 2,099,199 | |||||
Intersegment revenues (eliminations) | |||||||||
Segment financial information | |||||||||
Total revenues | 0 | 0 | 0 | 0 | |||||
Electric utility | |||||||||
Segment financial information | |||||||||
Total revenues | 688,330 | 687,409 | 1,900,609 | 1,865,962 | |||||
Income (loss) before income taxes | 58,099 | 57,354 | 140,775 | 134,847 | |||||
Income taxes (benefit) | 10,822 | 7,144 | 27,800 | 24,995 | |||||
Net income | 47,277 | 50,210 | 112,975 | 109,852 | |||||
Preferred stock dividends of subsidiaries | 498 | 498 | 1,496 | 1,496 | |||||
Net income for common stock | 46,779 | 49,712 | 111,479 | 108,356 | |||||
Total assets | 6,260,968 | 6,260,968 | 5,967,503 | ||||||
Electric utility | Revenues from external customers | |||||||||
Segment financial information | |||||||||
Total revenues | 688,299 | 687,396 | 1,900,552 | 1,865,922 | |||||
Electric utility | Intersegment revenues (eliminations) | |||||||||
Segment financial information | |||||||||
Total revenues | 31 | 13 | 57 | 40 | |||||
Bank | |||||||||
Segment financial information | |||||||||
Total revenues | 83,201 | 80,496 | 247,940 | 233,019 | |||||
Income (loss) before income taxes | 29,157 | 26,831 | 76,611 | 77,845 | |||||
Income taxes (benefit) | 6,269 | 5,610 | 15,868 | 17,103 | |||||
Net income | 22,888 | 21,221 | 60,743 | 60,742 | |||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 | |||||
Net income for common stock | 22,888 | 21,221 | 60,743 | 60,742 | |||||
Total assets | 7,135,250 | 7,135,250 | 7,027,894 | ||||||
Bank | Revenues from external customers | |||||||||
Segment financial information | |||||||||
Total revenues | 83,201 | 80,496 | 247,940 | 233,019 | |||||
Bank | Intersegment revenues (eliminations) | |||||||||
Segment financial information | |||||||||
Total revenues | 0 | 0 | 0 | 0 | |||||
Other | |||||||||
Segment financial information | |||||||||
Total revenues | 4 | 143 | 86 | 218 | |||||
Income (loss) before income taxes | (8,563) | (6,952) | (27,960) | (22,601) | |||||
Income taxes (benefit) | (2,288) | (1,892) | (7,278) | (5,625) | |||||
Net income | (6,275) | (5,060) | (20,682) | (16,976) | |||||
Preferred stock dividends of subsidiaries | (27) | (27) | (79) | (79) | |||||
Net income for common stock | (6,248) | (5,033) | (20,603) | (16,897) | |||||
Total assets | 121,752 | 121,752 | $ 108,654 | ||||||
Other | Revenues from external customers | |||||||||
Segment financial information | |||||||||
Total revenues | 35 | 156 | 143 | 258 | |||||
Other | Intersegment revenues (eliminations) | |||||||||
Segment financial information | |||||||||
Total revenues | $ (31) | $ (13) | $ (57) | $ (40) |
Electric utility segment - HECO
Electric utility segment - HECO Capital Trust III (Details) - VIE, Not Primary Beneficiary - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | May 15, 2019 | |
Variable Interest Entity [Line Items] | |||
Investment income, interest | $ 1,200 | $ 2,500 | |
Trust Preferred Securities Subject to Mandatory Redemption | |||
Variable Interest Entity [Line Items] | |||
Convertible preferred stock | $ 50,000 | ||
Trust Preferred Securities Subject to Mandatory Redemption | Hawaiian Electric Company | |||
Variable Interest Entity [Line Items] | |||
Convertible preferred stock | 50,000 | ||
Distributions to holders of Trust Preferred Securities | 1,200 | 2,400 | |
Trust Common Securities | Hawaiian Electric Company | |||
Variable Interest Entity [Line Items] | |||
Convertible preferred stock | $ 1,500 | ||
Common dividends on the trust common securities | $ 37 | $ 75 |
Electric utility segment - Unco
Electric utility segment - Unconsolidated variable interest entities (Details) - Hawaiian Electric Company | 9 Months Ended |
Sep. 30, 2019agreemententity | |
Power purchase agreement | |
Number of power purchase agreements (PPAs) (in agreements) | agreement | 4 |
Number of IPPs | 3 |
Number of firm capacity producers declining to provide financial information to determine primary beneficiary status (in entities) | 2 |
Minimum potential number of IPP entities consolidated into company in the future (in entities) | 1 |
Electric utility segment - Powe
Electric utility segment - Power purchase agreements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | $ 176 | $ 177 | $ 472 | $ 478 |
Hawaiian Electric (parent only) | Kalaeloa | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | 58 | 62 | 159 | 154 |
Hawaiian Electric (parent only) | AES Hawaii | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | 38 | 38 | 102 | 107 |
Hawaiian Electric (parent only) | HPOWER | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | 20 | 19 | 57 | 51 |
Hawaiian Electric (parent only) | Puna Geothermal Venture | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | 0 | 0 | 0 | 15 |
Hawaiian Electric (parent only) | Hamakua Energy | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | 17 | 17 | 51 | 39 |
Hawaiian Electric (parent only) | Wind IPPs | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | 30 | 31 | 73 | 84 |
Hawaiian Electric (parent only) | Solar IPPs | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | 11 | 8 | 26 | 22 |
Hawaiian Electric (parent only) | Other IPPs | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Purchased power | $ 2 | $ 2 | $ 4 | $ 6 |
Electric utility segment - Comm
Electric utility segment - Commitments and contingencies (Details) | Jun. 10, 2019USD ($) | Jun. 30, 2017USD ($)$ / kWhMW | Jun. 30, 2015MW | May 31, 2012MW | Mar. 31, 1988MW | Dec. 31, 2017 | Dec. 31, 1988MW | Sep. 30, 2019USD ($) |
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
AFUDC rate | 1.75% | |||||||
Project costs, accrued carrying costs once put into service | $ 59,100,000 | |||||||
Future O&M expense reductions | $ 150,000,000 | |||||||
Future cost avoidance related to capital cost and tax costs | $ 96,000,000 | |||||||
ERP/EAM project service period (in years) | 12 years | |||||||
Regulatory liability for O&M expense reductions | 1,400,000 | |||||||
West Lock PV Project, energy generated (in megawatts) | MW | 20 | |||||||
West Lock PV Project, cost cap | $ 67,000,000 | |||||||
West Lock PV Project, maximum energy cost (in dollars per kilowatt hours) | $ / kWh | 0.0956 | |||||||
West Lock PV Project, project costs incurred | 49,300,000 | |||||||
PCB Contamination | ||||||||
Environmental regulation | ||||||||
Valuation allowances and reserves | 4,400,000 | |||||||
AES Hawaii | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Purchase commitment, period (in years) | 30 years | |||||||
Minimum power volume required (in megawatts) | MW | 180 | |||||||
Additional capacity requirement (in megawatts) | MW | 9 | |||||||
Hu Honua Bioenergy, LLC | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Minimum power volume required (in megawatts) | MW | 21.5 | |||||||
Maui Electric | ||||||||
Environmental regulation | ||||||||
Additional accrued investigation and estimated cleanup costs | $ 2,700,000 | |||||||
Kalaeloa | Hawaiian Electric (parent only) | ||||||||
Regulatory Projects and Legal Obligations [Line Items] | ||||||||
Increased power purchase commitment capacity (in megawatts) | MW | 208 |
Electric utility segment - Regu
Electric utility segment - Regulatory Proceedings (Details) | Mar. 25, 2019contract | Apr. 27, 2017USD ($) | May 31, 2019USD ($) | Feb. 28, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($)$ / kWh |
Electric utility subsidiary [Abstract] | |||||||
MPIR requested amount | $ 3,600,000 | $ 19,800,000 | |||||
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 | $ 6,700,000 | ||||||
Dead band percentage above or below the target | 3.00% | ||||||
Call center performance, maximum penalty percentage | 0.08% | ||||||
Call center performance, pending adjusted maximum penalty | $ 1,300,000 | ||||||
Call center performance, maximum penalty amount | $ 2,100,000 | ||||||
Call center, additional penalty accrued | $ 1,300,000 | ||||||
Energy price, renewable projects with storage capacity (in dollars per kilowatt hour) | $ / kWh | 0.115 | ||||||
Energy price, renewable energy-only projects (in dollars per kilowatt hour) | $ / kWh | 0.095 | ||||||
Expected savings, phase 1, percent | 20.00% | ||||||
Performance incentive mechanism, incentive cap | $ 3,000,000 | $ 3,500,000 | |||||
Expected savings, Phase 2, January 2019 | 15.00% | ||||||
Expected savings, Phase 2, February 2019 | 10.00% | ||||||
Expected savings, Phase 2, March 2019 | 5.00% | ||||||
Performance incentive mechanism penalty | 0 | ||||||
Number of contracts which qualified for incentives under Phase 1 | contract | 6 | ||||||
Incentives accrued | $ 1,700,000 |
Electric utility segment - Annu
Electric utility segment - Annual decoupling filings summary (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Regulatory Projects and Legal Obligations [Line Items] | ||
2019 Annual incremental RAM adjusted revenues | $ 13 | |
Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery | (13.4) | |
Performance Incentive Mechanisms (net) | (1.7) | |
Net annual incremental amount to be collected (refunded) under the tariffs | (2.1) | |
Hawaiian Electric (parent only) | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
2019 Annual incremental RAM adjusted revenues | 6.5 | |
Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery | (12.2) | |
Performance Incentive Mechanisms (net) | (1.3) | |
Net annual incremental amount to be collected (refunded) under the tariffs | (7) | |
HELCO | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
2019 Annual incremental RAM adjusted revenues | 1.1 | |
Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery | (2) | |
Performance Incentive Mechanisms (net) | 0 | |
Net annual incremental amount to be collected (refunded) under the tariffs | (0.9) | |
Maui Electric | ||
Regulatory Projects and Legal Obligations [Line Items] | ||
2019 Annual incremental RAM adjusted revenues | 5.4 | |
Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery | 0.8 | |
Performance Incentive Mechanisms (net) | (0.4) | |
Net annual incremental amount to be collected (refunded) under the tariffs | $ 5.8 | |
2017 Tax Act Adjustment | $ (2.8) |
Electric utility segment - Rate
Electric utility segment - Rate proceedings (Details) - USD ($) $ in Thousands | Oct. 01, 2019 | Aug. 21, 2019 | Mar. 18, 2019 | Dec. 14, 2018 |
Hawaiian Electric (parent only) | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Stipulated ROACE rate | 10.50% | |||
General rate increase, revenue | $ 77,600 | |||
General rate increase, revenue, percent | 4.10% | |||
Assumptions on rate of return, return on average common equity, percentage decrease | 8.00% | |||
Maui Electric | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Interim general rate increase granted | $ 12,200 | |||
Effective interest rate of return | 7.43% | |||
Stipulated ROACE rate | 9.50% | |||
Common equity capitalization rate | 57.00% | |||
Rate Base | $ 454,000 | |||
Risk sharing percentage, ratepayer | 98.00% | |||
Risk sharing percentage, utility | 2.00% | |||
Maximum exposure cap | $ 600 | |||
HELCO | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Stipulated ROACE rate | 10.50% | |||
General rate increase, revenue | $ 13,400 | |||
General rate increase, revenue, percent | 3.40% | |||
Assumptions on rate of return, return on average common equity, percentage decrease | 8.30% | |||
HELCO | Subsequent Event | ||||
Regulatory Projects and Legal Obligations [Line Items] | ||||
Interim general rate increase granted | $ 2,790 | |||
Stipulated ROACE rate | 9.50% | |||
Common equity capitalization rate | 58.00% | |||
Amortization term | 40 years | |||
Final rate increase | 10.50% |
Electric utility segment - Cond
Electric utility segment - Condensed consolidating statement of income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | $ 771,535 | $ 768,048 | $ 2,148,635 | $ 2,099,199 | ||||
Expenses | ||||||||
Purchased power | 176,000 | 177,000 | 472,000 | 478,000 | ||||
Total expenses | 674,227 | 669,984 | 1,900,756 | 1,850,447 | ||||
Total operating income | 97,308 | 98,064 | 247,879 | 248,752 | ||||
Allowance for equity funds used during construction | 3,250 | 1,962 | 9,335 | 8,239 | ||||
Retirement defined benefits expense—other than service costs | (648) | (1,276) | (2,172) | (4,673) | ||||
Allowance for borrowed funds used during construction | 1,208 | 1,006 | 3,465 | 3,815 | ||||
Income before income taxes | 78,693 | 77,233 | 189,426 | 190,091 | ||||
Income taxes | 14,803 | 10,862 | 36,390 | 36,473 | ||||
Net income | 63,890 | 66,371 | 153,036 | 153,618 | ||||
Preferred stock dividends of subsidiaries | 471 | 471 | 1,417 | 1,417 | ||||
Net income for common stock | 63,419 | $ 42,512 | $ 45,688 | 65,900 | $ 46,054 | $ 40,247 | 151,619 | 152,201 |
Consolidating adjustments | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | (205) | (55) | (439) | (156) | ||||
Expenses | ||||||||
Fuel oil | 0 | 0 | 0 | 0 | ||||
Purchased power | 0 | 0 | 0 | 0 | ||||
Other operation and maintenance | 0 | 0 | 0 | 0 | ||||
Depreciation | 0 | 0 | 0 | 0 | ||||
Taxes, other than income taxes | 0 | 0 | 0 | 0 | ||||
Total expenses | 0 | 0 | 0 | 0 | ||||
Total operating income | (205) | (55) | (439) | (156) | ||||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 | ||||
Equity in earnings of subsidiaries | (11,048) | (16,636) | (30,983) | (35,041) | ||||
Retirement defined benefits expense—other than service costs | 0 | 0 | 0 | 0 | ||||
Interest expense and other charges, net | 205 | 55 | 439 | 156 | ||||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | 0 | ||||
Income before income taxes | (11,048) | (16,636) | (30,983) | (35,041) | ||||
Income taxes | 0 | 0 | 0 | 0 | ||||
Net income | (11,048) | (16,636) | (30,983) | (35,041) | ||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income attributable to Hawaiian Electric | (11,048) | (16,636) | (30,983) | (35,041) | ||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||||
Net income for common stock | (11,048) | (16,636) | (30,983) | (35,041) | ||||
Hawaiian Electric (parent only) | Reportable Legal Entities | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 491,723 | 488,210 | 1,347,412 | 1,321,089 | ||||
Expenses | ||||||||
Fuel oil | 139,747 | 141,357 | 374,100 | 375,862 | ||||
Purchased power | 135,447 | 138,135 | 367,541 | 367,317 | ||||
Other operation and maintenance | 80,582 | 78,988 | 240,311 | 228,773 | ||||
Depreciation | 35,867 | 34,282 | 107,602 | 103,112 | ||||
Taxes, other than income taxes | 46,433 | 46,096 | 127,654 | 125,214 | ||||
Total expenses | 438,076 | 438,858 | 1,217,208 | 1,200,278 | ||||
Total operating income | 53,647 | 49,352 | 130,204 | 120,811 | ||||
Allowance for equity funds used during construction | 2,685 | 1,648 | 7,746 | 7,123 | ||||
Equity in earnings of subsidiaries | 11,048 | 16,636 | 30,983 | 35,041 | ||||
Retirement defined benefits expense—other than service costs | (582) | (475) | (1,716) | (2,091) | ||||
Interest expense and other charges, net | (12,771) | (13,542) | (38,961) | (38,967) | ||||
Allowance for borrowed funds used during construction | 990 | 810 | 2,854 | 3,198 | ||||
Income before income taxes | 55,017 | 54,429 | 131,110 | 125,115 | ||||
Income taxes | 7,968 | 4,447 | 18,821 | 15,949 | ||||
Net income | 47,049 | 49,982 | 112,289 | 109,166 | ||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income attributable to Hawaiian Electric | 47,049 | 49,982 | 112,289 | 109,166 | ||||
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 810 | 810 | ||||
Net income for common stock | 46,779 | 49,712 | 111,479 | 108,356 | ||||
HELCO | Reportable Legal Entities | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 93,576 | 98,981 | 270,697 | 276,462 | ||||
Expenses | ||||||||
Fuel oil | 21,427 | 26,429 | 62,210 | 64,348 | ||||
Purchased power | 24,342 | 24,091 | 67,548 | 72,589 | ||||
Other operation and maintenance | 19,868 | 15,253 | 56,635 | 50,366 | ||||
Depreciation | 10,453 | 10,072 | 31,359 | 30,165 | ||||
Taxes, other than income taxes | 8,359 | 9,215 | 25,170 | 25,835 | ||||
Total expenses | 84,449 | 85,060 | 242,922 | 243,303 | ||||
Total operating income | 9,127 | 13,921 | 27,775 | 33,159 | ||||
Allowance for equity funds used during construction | 229 | 39 | 579 | 274 | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Retirement defined benefits expense—other than service costs | (105) | (104) | (316) | (312) | ||||
Interest expense and other charges, net | (2,524) | (3,026) | (8,345) | (8,855) | ||||
Allowance for borrowed funds used during construction | 95 | 49 | 242 | 190 | ||||
Income before income taxes | 6,822 | 10,879 | 19,935 | 24,456 | ||||
Income taxes | 1,420 | 1,571 | 4,431 | 5,017 | ||||
Net income | 5,402 | 9,308 | 15,504 | 19,439 | ||||
Preferred stock dividends of subsidiaries | 133 | 133 | 400 | 400 | ||||
Net income attributable to Hawaiian Electric | 5,269 | 9,175 | 15,104 | 19,039 | ||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||||
Net income for common stock | 5,269 | 9,175 | 15,104 | 19,039 | ||||
Maui Electric | Reportable Legal Entities | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 103,236 | 100,273 | 282,939 | 268,567 | ||||
Expenses | ||||||||
Fuel oil | 37,919 | 38,765 | 105,012 | 105,026 | ||||
Purchased power | 15,248 | 15,364 | 37,247 | 38,332 | ||||
Other operation and maintenance | 23,965 | 19,312 | 64,859 | 54,666 | ||||
Depreciation | 7,615 | 6,629 | 22,834 | 18,533 | ||||
Taxes, other than income taxes | 9,265 | 9,385 | 26,480 | 25,275 | ||||
Total expenses | 94,012 | 89,455 | 256,432 | 241,832 | ||||
Total operating income | 9,224 | 10,818 | 26,507 | 26,735 | ||||
Allowance for equity funds used during construction | 336 | 275 | 1,010 | 842 | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Retirement defined benefits expense—other than service costs | (36) | (103) | (95) | (531) | ||||
Interest expense and other charges, net | (2,339) | (2,455) | (7,078) | (7,156) | ||||
Allowance for borrowed funds used during construction | 123 | 147 | 369 | 427 | ||||
Income before income taxes | 7,308 | 8,682 | 20,713 | 20,317 | ||||
Income taxes | 1,434 | 1,126 | 4,548 | 4,029 | ||||
Net income | 5,874 | 7,556 | 16,165 | 16,288 | ||||
Preferred stock dividends of subsidiaries | 95 | 95 | 286 | 286 | ||||
Net income attributable to Hawaiian Electric | 5,779 | 7,461 | 15,879 | 16,002 | ||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||||
Net income for common stock | 5,779 | 7,461 | 15,879 | 16,002 | ||||
Other subsidiaries | Reportable Legal Entities | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 0 | 0 | 0 | 0 | ||||
Expenses | ||||||||
Fuel oil | 0 | 0 | 0 | 0 | ||||
Purchased power | 0 | 0 | 0 | 0 | ||||
Other operation and maintenance | 0 | 0 | 0 | 0 | ||||
Depreciation | 0 | 0 | 0 | 0 | ||||
Taxes, other than income taxes | 0 | 0 | 0 | 0 | ||||
Total expenses | 0 | 0 | 0 | 0 | ||||
Total operating income | 0 | 0 | 0 | 0 | ||||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Retirement defined benefits expense—other than service costs | 0 | 0 | 0 | 0 | ||||
Interest expense and other charges, net | 0 | 0 | 0 | 0 | ||||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | 0 | ||||
Income before income taxes | 0 | 0 | 0 | 0 | ||||
Income taxes | 0 | 0 | 0 | 0 | ||||
Net income | 0 | 0 | 0 | 0 | ||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income attributable to Hawaiian Electric | 0 | 0 | 0 | 0 | ||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | 0 | ||||
Net income for common stock | 0 | 0 | 0 | 0 | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 688,330 | 687,409 | 1,900,609 | 1,865,962 | ||||
Expenses | ||||||||
Fuel oil | 199,093 | 206,551 | 541,322 | 545,236 | ||||
Purchased power | 175,037 | 177,590 | 472,336 | 478,238 | ||||
Other operation and maintenance | 124,415 | 113,553 | 361,805 | 333,805 | ||||
Depreciation | 53,935 | 50,983 | 161,795 | 151,810 | ||||
Taxes, other than income taxes | 64,057 | 64,696 | 179,304 | 176,324 | ||||
Total expenses | 616,537 | 613,373 | 1,716,562 | 1,685,413 | ||||
Total operating income | 71,793 | 74,036 | 184,047 | 180,549 | ||||
Allowance for equity funds used during construction | 3,250 | 1,962 | 9,335 | 8,239 | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Retirement defined benefits expense—other than service costs | (723) | (682) | (2,127) | (2,934) | ||||
Interest expense and other charges, net | (17,429) | (18,968) | (53,945) | (54,822) | ||||
Allowance for borrowed funds used during construction | 1,208 | 1,006 | 3,465 | 3,815 | ||||
Income before income taxes | 58,099 | 57,354 | 140,775 | 134,847 | ||||
Income taxes | 10,822 | 7,144 | 27,800 | 24,995 | ||||
Net income | 47,277 | 50,210 | 112,975 | 109,852 | ||||
Preferred stock dividends of subsidiaries | 228 | 228 | 686 | 686 | ||||
Net income attributable to Hawaiian Electric | 47,049 | 49,982 | 112,289 | 109,166 | ||||
Preferred stock dividends of Hawaiian Electric | 270 | 270 | 810 | 810 | ||||
Net income for common stock | $ 46,779 | $ 32,574 | $ 32,126 | $ 49,712 | $ 31,169 | $ 27,475 | $ 111,479 | $ 108,356 |
Electric utility segment - Co_2
Electric utility segment - Condensed consolidating statement of comprehensive income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | $ 63,419 | $ 42,512 | $ 45,688 | $ 65,900 | $ 46,054 | $ 40,247 | $ 151,619 | $ 152,201 |
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 2,615 | 5,259 | 7,621 | 15,755 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (2,493) | (4,725) | (7,089) | (14,174) | ||||
Other comprehensive income (loss), net of taxes | 3,297 | 13,699 | 9,241 | (4,589) | (3,825) | (12,773) | 26,237 | (21,187) |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 66,716 | 61,311 | 177,856 | 131,014 | ||||
Consolidating adjustments | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | (11,048) | (16,636) | (30,983) | (35,041) | ||||
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | (696) | (1,311) | (1,978) | (3,931) | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 696 | 1,311 | 1,976 | 3,930 | ||||
Other comprehensive income (loss), net of taxes | 0 | 0 | (2) | (1) | ||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | (11,048) | (16,636) | (30,985) | (35,042) | ||||
Hawaiian Electric (parent only) | Reportable Legal Entities | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | 46,779 | 49,712 | 111,479 | 108,356 | ||||
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 2,519 | 4,753 | 7,162 | 14,259 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (2,493) | (4,725) | (7,089) | (14,174) | ||||
Other comprehensive income (loss), net of taxes | 26 | 28 | 73 | 85 | ||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 46,805 | 49,740 | 111,552 | 108,441 | ||||
HELCO | Reportable Legal Entities | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | 5,269 | 9,175 | 15,104 | 19,039 | ||||
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 387 | 705 | 1,091 | 2,114 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (387) | (705) | (1,089) | (2,113) | ||||
Other comprehensive income (loss), net of taxes | 0 | 0 | 2 | 1 | ||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 5,269 | 9,175 | 15,106 | 19,040 | ||||
Maui Electric | Reportable Legal Entities | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | 5,779 | 7,461 | 15,879 | 16,002 | ||||
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 309 | 606 | 887 | 1,817 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (309) | (606) | (887) | (1,817) | ||||
Other comprehensive income (loss), net of taxes | 0 | 0 | 0 | 0 | ||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 5,779 | 7,461 | 15,879 | 16,002 | ||||
Other subsidiaries | Reportable Legal Entities | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | 0 | 0 | 0 | 0 | ||||
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 0 | 0 | 0 | 0 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 0 | 0 | 0 | 0 | ||||
Other comprehensive income (loss), net of taxes | 0 | 0 | 0 | 0 | ||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 0 | 0 | 0 | 0 | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | 46,779 | 32,574 | 32,126 | 49,712 | 31,169 | 27,475 | 111,479 | 108,356 |
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 2,519 | 4,753 | 7,162 | 14,259 | ||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (2,493) | (4,725) | (7,089) | (14,174) | ||||
Other comprehensive income (loss), net of taxes | 26 | $ 23 | $ 24 | 28 | $ 26 | $ 31 | 73 | 85 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ 46,805 | $ 49,740 | $ 111,552 | $ 108,441 |
Electric utility segment - Co_3
Electric utility segment - Condensed consolidating balance sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Utility property, plant and equipment | ||||||||
Total property, plant and equipment, net | $ 5,006,394 | $ 4,830,118 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 176,988 | 169,208 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 213,910 | |||||||
Total assets | 13,517,970 | 13,104,051 | ||||||
Capitalization | ||||||||
Total shareholders’ equity | 2,242,689 | $ 2,208,586 | $ 2,183,515 | 2,162,280 | $ 2,132,045 | $ 2,103,018 | $ 2,091,777 | $ 2,097,386 |
Cumulative preferred stock—not subject to mandatory redemption | 0 | 0 | ||||||
Current liabilities | ||||||||
Interest and preferred dividends payable | 32,338 | 28,254 | ||||||
Deferred credits and other liabilities | ||||||||
Deferred income taxes | 393,140 | 372,518 | ||||||
Total liabilities and shareholders’ equity | 13,517,970 | 13,104,051 | ||||||
Consolidating adjustments | ||||||||
Utility property, plant and equipment | ||||||||
Land | 0 | 0 | ||||||
Plant and equipment | 0 | 0 | ||||||
Less accumulated depreciation | 0 | 0 | ||||||
Construction in progress | 0 | 0 | ||||||
Utility property, plant and equipment, net | 0 | 0 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 0 | 0 | ||||||
Total property, plant and equipment, net | 0 | 0 | ||||||
Investment in wholly owned subsidiaries, at equity | (588,886) | (576,838) | ||||||
Current assets | ||||||||
Cash and cash equivalents | 0 | 0 | ||||||
Advances to affiliates | (37,200) | |||||||
Customer accounts receivable, net | 0 | 0 | ||||||
Accrued unbilled revenues, net | 0 | 0 | ||||||
Other accounts receivable, net | (9,948) | (21,911) | ||||||
Fuel oil stock, at average cost | 0 | 0 | ||||||
Materials and supplies, at average cost | 0 | 0 | ||||||
Prepayments and other | (1,395) | 0 | ||||||
Regulatory assets | 0 | 0 | ||||||
Total current assets | (48,543) | (21,911) | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 0 | |||||||
Regulatory assets | 0 | 0 | ||||||
Other | 0 | 0 | ||||||
Total other long-term assets | 0 | 0 | ||||||
Total assets | (637,429) | (598,749) | ||||||
Capitalization | ||||||||
Total shareholders’ equity | (588,886) | (576,838) | (571,574) | (557,013) | ||||
Cumulative preferred stock—not subject to mandatory redemption | 0 | 0 | ||||||
Long-term debt, net | 0 | 0 | ||||||
Total capitalization | (588,886) | (576,838) | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 0 | |||||||
Current portion of long-term debt | 0 | |||||||
Short-term borrowings from non-affiliates | 0 | 0 | ||||||
Short-term borrowings from affiliate | (37,200) | |||||||
Accounts payable | 0 | 0 | ||||||
Interest and preferred dividends payable | (69) | (32) | ||||||
Taxes accrued | (1,395) | 0 | ||||||
Regulatory liabilities | 0 | 0 | ||||||
Other | (9,879) | (21,879) | ||||||
Total current liabilities | (48,543) | (21,911) | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 0 | |||||||
Deferred income taxes | 0 | 0 | ||||||
Regulatory liabilities | 0 | 0 | ||||||
Unamortized tax credits | 0 | 0 | ||||||
Defined benefit pension and other postretirement benefit plans liability | 0 | 0 | ||||||
Other | 0 | 0 | ||||||
Total deferred credits and other liabilities | 0 | 0 | ||||||
Total liabilities and shareholders’ equity | (637,429) | (598,749) | ||||||
Hawaiian Electric (parent only) | Reportable Legal Entities | ||||||||
Utility property, plant and equipment | ||||||||
Land | 42,112 | 40,449 | ||||||
Plant and equipment | 4,676,163 | 4,456,090 | ||||||
Less accumulated depreciation | (1,595,962) | (1,523,861) | ||||||
Construction in progress | 185,022 | 193,677 | ||||||
Utility property, plant and equipment, net | 3,307,335 | 3,166,355 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 5,311 | 5,314 | ||||||
Total property, plant and equipment, net | 3,312,646 | 3,171,669 | ||||||
Investment in wholly owned subsidiaries, at equity | 588,886 | 576,838 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 22,073 | 16,732 | ||||||
Advances to affiliates | 22,200 | |||||||
Customer accounts receivable, net | 111,171 | 125,960 | ||||||
Accrued unbilled revenues, net | 90,015 | 88,060 | ||||||
Other accounts receivable, net | 10,994 | 21,962 | ||||||
Fuel oil stock, at average cost | 62,645 | 54,262 | ||||||
Materials and supplies, at average cost | 33,747 | 30,291 | ||||||
Prepayments and other | 38,439 | 23,214 | ||||||
Regulatory assets | 29,410 | 60,093 | ||||||
Total current assets | 420,694 | 420,574 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 190,300 | |||||||
Regulatory assets | 502,254 | 537,708 | ||||||
Other | 72,386 | 69,749 | ||||||
Total other long-term assets | 764,940 | 607,457 | ||||||
Total assets | 5,087,166 | 4,776,538 | ||||||
Capitalization | ||||||||
Total shareholders’ equity | 1,993,254 | 1,957,641 | 1,876,237 | 1,845,283 | ||||
Cumulative preferred stock—not subject to mandatory redemption | 22,293 | 22,293 | ||||||
Long-term debt, net | 937,211 | 1,000,137 | ||||||
Total capitalization | 2,952,758 | 2,980,071 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 62,634 | |||||||
Current portion of long-term debt | 61,976 | |||||||
Short-term borrowings from non-affiliates | 112,353 | 25,000 | ||||||
Short-term borrowings from affiliate | 15,000 | |||||||
Accounts payable | 113,544 | 126,384 | ||||||
Interest and preferred dividends payable | 19,699 | 16,203 | ||||||
Taxes accrued | 143,156 | 164,747 | ||||||
Regulatory liabilities | 9,255 | 7,699 | ||||||
Other | 51,943 | 46,391 | ||||||
Total current liabilities | 589,560 | 386,424 | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 126,979 | |||||||
Deferred income taxes | 282,336 | 271,438 | ||||||
Regulatory liabilities | 663,414 | 657,210 | ||||||
Unamortized tax credits | 60,095 | 60,271 | ||||||
Defined benefit pension and other postretirement benefit plans liability | 359,420 | 359,174 | ||||||
Other | 52,604 | 61,950 | ||||||
Total deferred credits and other liabilities | 1,544,848 | 1,410,043 | ||||||
Total liabilities and shareholders’ equity | 5,087,166 | 4,776,538 | ||||||
HELCO | Reportable Legal Entities | ||||||||
Utility property, plant and equipment | ||||||||
Land | 5,606 | 5,606 | ||||||
Plant and equipment | 1,282,065 | 1,259,553 | ||||||
Less accumulated depreciation | (569,878) | (547,848) | ||||||
Construction in progress | 17,219 | 8,781 | ||||||
Utility property, plant and equipment, net | 735,012 | 726,092 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 115 | 115 | ||||||
Total property, plant and equipment, net | 735,127 | 726,207 | ||||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 5,003 | 15,623 | ||||||
Advances to affiliates | 15,000 | |||||||
Customer accounts receivable, net | 25,676 | 26,483 | ||||||
Accrued unbilled revenues, net | 15,880 | 17,051 | ||||||
Other accounts receivable, net | 1,516 | 3,131 | ||||||
Fuel oil stock, at average cost | 10,694 | 11,027 | ||||||
Materials and supplies, at average cost | 10,170 | 7,155 | ||||||
Prepayments and other | 4,622 | 5,212 | ||||||
Regulatory assets | 1,684 | 3,177 | ||||||
Total current assets | 90,245 | 88,859 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 1,560 | |||||||
Regulatory assets | 112,900 | 120,658 | ||||||
Other | 17,096 | 15,944 | ||||||
Total other long-term assets | 131,556 | 136,602 | ||||||
Total assets | 956,928 | 951,668 | ||||||
Capitalization | ||||||||
Total shareholders’ equity | 303,345 | 295,874 | 294,220 | 286,647 | ||||
Cumulative preferred stock—not subject to mandatory redemption | 7,000 | 7,000 | ||||||
Long-term debt, net | 203,952 | 217,749 | ||||||
Total capitalization | 514,297 | 520,623 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 94 | |||||||
Current portion of long-term debt | 13,992 | |||||||
Short-term borrowings from non-affiliates | 0 | 0 | ||||||
Short-term borrowings from affiliate | 0 | |||||||
Accounts payable | 17,654 | 20,045 | ||||||
Interest and preferred dividends payable | 3,695 | 4,203 | ||||||
Taxes accrued | 30,874 | 34,128 | ||||||
Regulatory liabilities | 5,836 | 4,872 | ||||||
Other | 10,187 | 15,077 | ||||||
Total current liabilities | 82,332 | 78,325 | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 1,466 | |||||||
Deferred income taxes | 53,939 | 54,936 | ||||||
Regulatory liabilities | 181,472 | 176,101 | ||||||
Unamortized tax credits | 16,054 | 16,217 | ||||||
Defined benefit pension and other postretirement benefit plans liability | 71,112 | 73,147 | ||||||
Other | 36,256 | 32,319 | ||||||
Total deferred credits and other liabilities | 360,299 | 352,720 | ||||||
Total liabilities and shareholders’ equity | 956,928 | 951,668 | ||||||
Maui Electric | Reportable Legal Entities | ||||||||
Utility property, plant and equipment | ||||||||
Land | 3,612 | 3,612 | ||||||
Plant and equipment | 1,139,058 | 1,094,028 | ||||||
Less accumulated depreciation | (520,548) | (505,633) | ||||||
Construction in progress | 24,315 | 30,687 | ||||||
Utility property, plant and equipment, net | 646,437 | 622,694 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 1,532 | 1,532 | ||||||
Total property, plant and equipment, net | 647,969 | 624,226 | ||||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 5,330 | 3,421 | ||||||
Advances to affiliates | 0 | |||||||
Customer accounts receivable, net | 26,246 | 25,453 | ||||||
Accrued unbilled revenues, net | 17,925 | 16,627 | ||||||
Other accounts receivable, net | 2,056 | 3,033 | ||||||
Fuel oil stock, at average cost | 11,204 | 14,646 | ||||||
Materials and supplies, at average cost | 16,893 | 17,758 | ||||||
Prepayments and other | 4,655 | 3,692 | ||||||
Regulatory assets | 1,857 | 7,746 | ||||||
Total current assets | 86,166 | 92,376 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 394 | |||||||
Regulatory assets | 101,162 | 104,044 | ||||||
Other | 18,511 | 17,299 | ||||||
Total other long-term assets | 120,067 | 121,343 | ||||||
Total assets | 854,202 | 837,945 | ||||||
Capitalization | ||||||||
Total shareholders’ equity | 285,440 | 280,863 | 277,253 | 270,265 | ||||
Cumulative preferred stock—not subject to mandatory redemption | 5,000 | 5,000 | ||||||
Long-term debt, net | 181,092 | 200,916 | ||||||
Total capitalization | 471,532 | 486,779 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 30 | |||||||
Current portion of long-term debt | 19,997 | |||||||
Short-term borrowings from non-affiliates | 0 | 0 | ||||||
Short-term borrowings from affiliate | 22,200 | |||||||
Accounts payable | 21,364 | 25,362 | ||||||
Interest and preferred dividends payable | 4,215 | 2,841 | ||||||
Taxes accrued | 32,204 | 34,458 | ||||||
Regulatory liabilities | 4,425 | 5,406 | ||||||
Other | 15,648 | 20,414 | ||||||
Total current liabilities | 120,083 | 88,481 | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 367 | |||||||
Deferred income taxes | 56,286 | 56,823 | ||||||
Regulatory liabilities | 99,338 | 98,948 | ||||||
Unamortized tax credits | 14,571 | 15,034 | ||||||
Defined benefit pension and other postretirement benefit plans liability | 69,654 | 71,338 | ||||||
Other | 22,371 | 20,542 | ||||||
Total deferred credits and other liabilities | 262,587 | 262,685 | ||||||
Total liabilities and shareholders’ equity | 854,202 | 837,945 | ||||||
Other subsidiaries | Reportable Legal Entities | ||||||||
Utility property, plant and equipment | ||||||||
Land | 0 | 0 | ||||||
Plant and equipment | 0 | 0 | ||||||
Less accumulated depreciation | 0 | 0 | ||||||
Construction in progress | 0 | 0 | ||||||
Utility property, plant and equipment, net | 0 | 0 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 0 | 0 | ||||||
Total property, plant and equipment, net | 0 | 0 | ||||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 101 | 101 | ||||||
Advances to affiliates | 0 | |||||||
Customer accounts receivable, net | 0 | 0 | ||||||
Accrued unbilled revenues, net | 0 | 0 | ||||||
Other accounts receivable, net | 0 | 0 | ||||||
Fuel oil stock, at average cost | 0 | 0 | ||||||
Materials and supplies, at average cost | 0 | 0 | ||||||
Prepayments and other | 0 | 0 | ||||||
Regulatory assets | 0 | 0 | ||||||
Total current assets | 101 | 101 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 0 | |||||||
Regulatory assets | 0 | 0 | ||||||
Other | 0 | 0 | ||||||
Total other long-term assets | 0 | 0 | ||||||
Total assets | 101 | 101 | ||||||
Capitalization | ||||||||
Total shareholders’ equity | 101 | 101 | 101 | 101 | ||||
Cumulative preferred stock—not subject to mandatory redemption | 0 | 0 | ||||||
Long-term debt, net | 0 | 0 | ||||||
Total capitalization | 101 | 101 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 0 | |||||||
Current portion of long-term debt | 0 | |||||||
Short-term borrowings from non-affiliates | 0 | 0 | ||||||
Short-term borrowings from affiliate | 0 | |||||||
Accounts payable | 0 | 0 | ||||||
Interest and preferred dividends payable | 0 | 0 | ||||||
Taxes accrued | 0 | 0 | ||||||
Regulatory liabilities | 0 | 0 | ||||||
Other | 0 | 0 | ||||||
Total current liabilities | 0 | 0 | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 0 | |||||||
Deferred income taxes | 0 | 0 | ||||||
Regulatory liabilities | 0 | 0 | ||||||
Unamortized tax credits | 0 | 0 | ||||||
Defined benefit pension and other postretirement benefit plans liability | 0 | 0 | ||||||
Other | 0 | 0 | ||||||
Total deferred credits and other liabilities | 0 | 0 | ||||||
Total liabilities and shareholders’ equity | 101 | 101 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Utility property, plant and equipment | ||||||||
Land | 51,330 | 49,667 | ||||||
Plant and equipment | 7,097,286 | 6,809,671 | ||||||
Less accumulated depreciation | (2,686,388) | (2,577,342) | ||||||
Construction in progress | 226,556 | 233,145 | ||||||
Utility property, plant and equipment, net | 4,688,784 | 4,515,141 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation | 6,958 | 6,961 | ||||||
Total property, plant and equipment, net | 4,695,742 | 4,522,102 | ||||||
Investment in wholly owned subsidiaries, at equity | 0 | 0 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 32,507 | 35,877 | ||||||
Advances to affiliates | 0 | |||||||
Customer accounts receivable, net | 163,093 | 177,896 | ||||||
Accrued unbilled revenues, net | 123,820 | 121,738 | ||||||
Other accounts receivable, net | 4,618 | 6,215 | ||||||
Fuel oil stock, at average cost | 84,543 | 79,935 | ||||||
Materials and supplies, at average cost | 60,810 | 55,204 | ||||||
Prepayments and other | 46,321 | 32,118 | ||||||
Regulatory assets | 32,951 | 71,016 | ||||||
Total current assets | 548,663 | 579,999 | ||||||
Other long-term assets | ||||||||
Operating lease right-of-use assets | 192,254 | |||||||
Regulatory assets | 716,316 | 762,410 | ||||||
Other | 107,993 | 102,992 | ||||||
Total other long-term assets | 1,016,563 | 865,402 | ||||||
Total assets | 6,260,968 | 5,967,503 | ||||||
Capitalization | ||||||||
Total shareholders’ equity | 1,993,254 | $ 1,971,762 | $ 1,964,478 | 1,957,641 | $ 1,876,237 | $ 1,852,324 | $ 1,846,955 | $ 1,845,283 |
Cumulative preferred stock—not subject to mandatory redemption | 34,293 | 34,293 | ||||||
Long-term debt, net | 1,322,255 | 1,418,802 | ||||||
Total capitalization | 3,349,802 | 3,410,736 | ||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | 62,758 | 0 | ||||||
Current portion of long-term debt | 95,965 | 0 | ||||||
Short-term borrowings from non-affiliates | 112,353 | 25,000 | ||||||
Short-term borrowings from affiliate | 0 | |||||||
Accounts payable | 152,562 | 171,791 | ||||||
Interest and preferred dividends payable | 27,540 | 23,215 | ||||||
Taxes accrued | 204,839 | 233,333 | ||||||
Regulatory liabilities | 19,516 | 17,977 | ||||||
Other | 67,899 | 60,003 | ||||||
Total current liabilities | 743,432 | 531,319 | ||||||
Deferred credits and other liabilities | ||||||||
Operating lease liabilities | 128,812 | 0 | ||||||
Deferred income taxes | 392,561 | 383,197 | ||||||
Regulatory liabilities | 944,224 | 932,259 | ||||||
Unamortized tax credits | 90,720 | 91,522 | ||||||
Defined benefit pension and other postretirement benefit plans liability | 500,186 | 503,659 | ||||||
Other | 111,231 | 114,811 | ||||||
Total deferred credits and other liabilities | 2,167,734 | 2,025,448 | ||||||
Total liabilities and shareholders’ equity | $ 6,260,968 | $ 5,967,503 |
Electric utility segment - Co_4
Electric utility segment - Condensed consolidating statement of changes in common stock equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Increase (decrease) in stockholders' equity | ||||||||
Beginning Balance | $ 2,208,586 | $ 2,183,515 | $ 2,162,280 | $ 2,103,018 | $ 2,091,777 | $ 2,097,386 | $ 2,162,280 | $ 2,097,386 |
Net income for common stock | 63,419 | 42,512 | 45,688 | 65,900 | 46,054 | 40,247 | 151,619 | 152,201 |
Other comprehensive income, net of taxes | 3,297 | 13,699 | 9,241 | (4,589) | (3,825) | (12,773) | 26,237 | (21,187) |
Common stock dividends | (34,871) | (34,860) | (34,860) | (33,754) | (33,740) | (33,741) | ||
Ending Balance | 2,242,689 | 2,208,586 | 2,183,515 | 2,132,045 | 2,103,018 | 2,091,777 | 2,242,689 | 2,132,045 |
Consolidating adjustments | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning Balance | (576,838) | (557,013) | (576,838) | (557,013) | ||||
Net income for common stock | (11,048) | (16,636) | (30,983) | (35,041) | ||||
Other comprehensive income, net of taxes | 0 | 0 | (2) | (1) | ||||
Common stock dividends | 18,936 | 20,481 | ||||||
Common stock issuance expenses | 1 | 0 | ||||||
Ending Balance | (588,886) | (571,574) | (588,886) | (571,574) | ||||
Hawaiian Electric (parent only) | Reportable Legal Entities | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning Balance | 1,957,641 | 1,845,283 | 1,957,641 | 1,845,283 | ||||
Net income for common stock | 46,779 | 49,712 | 111,479 | 108,356 | ||||
Other comprehensive income, net of taxes | 26 | 28 | 73 | 85 | ||||
Common stock dividends | (75,939) | (77,479) | ||||||
Common stock issuance expenses | 0 | (8) | ||||||
Ending Balance | 1,993,254 | 1,876,237 | 1,993,254 | 1,876,237 | ||||
HELCO | Reportable Legal Entities | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning Balance | 295,874 | 286,647 | 295,874 | 286,647 | ||||
Net income for common stock | 5,269 | 9,175 | 15,104 | 19,039 | ||||
Other comprehensive income, net of taxes | 0 | 0 | 2 | 1 | ||||
Common stock dividends | (7,635) | (11,467) | ||||||
Common stock issuance expenses | 0 | 0 | ||||||
Ending Balance | 303,345 | 294,220 | 303,345 | 294,220 | ||||
Maui Electric | Reportable Legal Entities | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning Balance | 280,863 | 270,265 | 280,863 | 270,265 | ||||
Net income for common stock | 5,779 | 7,461 | 15,879 | 16,002 | ||||
Other comprehensive income, net of taxes | 0 | 0 | 0 | 0 | ||||
Common stock dividends | (11,301) | (9,014) | ||||||
Common stock issuance expenses | (1) | 0 | ||||||
Ending Balance | 285,440 | 277,253 | 285,440 | 277,253 | ||||
Other subsidiaries | Reportable Legal Entities | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning Balance | 101 | 101 | 101 | 101 | ||||
Net income for common stock | 0 | 0 | 0 | 0 | ||||
Other comprehensive income, net of taxes | 0 | 0 | 0 | 0 | ||||
Common stock dividends | 0 | 0 | ||||||
Common stock issuance expenses | 0 | 0 | ||||||
Ending Balance | 101 | 101 | 101 | 101 | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Increase (decrease) in stockholders' equity | ||||||||
Beginning Balance | 1,971,762 | 1,964,478 | 1,957,641 | 1,852,324 | 1,846,955 | 1,845,283 | 1,957,641 | 1,845,283 |
Net income for common stock | 46,779 | 32,574 | 32,126 | 49,712 | 31,169 | 27,475 | 111,479 | 108,356 |
Other comprehensive income, net of taxes | 26 | 23 | 24 | 28 | 26 | 31 | 73 | 85 |
Common stock dividends | (25,313) | (25,313) | (25,313) | (25,827) | (25,826) | (25,826) | (75,939) | (77,479) |
Common stock issuance expenses | (8) | 0 | (8) | |||||
Ending Balance | $ 1,993,254 | $ 1,971,762 | $ 1,964,478 | $ 1,876,237 | $ 1,852,324 | $ 1,846,955 | $ 1,993,254 | $ 1,876,237 |
Electric utility segment - Co_5
Electric utility segment - Condensed consolidating statement of cash flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net cash provided by operating activities | $ 341,428 | $ 257,679 |
Cash flows from investing activities | ||
Capital expenditures | (332,273) | (380,623) |
Other | 3,495 | 14,258 |
Net cash used in investing activities | (373,434) | (541,761) |
Cash flows from financing activities | ||
Common stock dividends | (104,591) | (101,235) |
Proceeds from issuance of short-term debt | 64,844 | 85,369 |
Proceeds from issuance of long-term debt | 208,970 | 100,000 |
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (204,278) | (1,867) |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 19,150 | (17,374) |
Other | (4,266) | (5,668) |
Net cash provided by financing activities | 39,786 | 194,255 |
Net increase (decrease) in cash and cash equivalents | 7,780 | (89,827) |
Cash and cash equivalents, beginning of period | 169,208 | 261,881 |
Cash and cash equivalents, end of period | 176,988 | 172,054 |
Consolidating adjustments | ||
Cash flows from operating activities | ||
Net cash provided by operating activities | (18,935) | (20,812) |
Cash flows from investing activities | ||
Capital expenditures | 0 | 0 |
Advances to affiliates | 37,200 | (10,000) |
Other | 0 | 331 |
Net cash used in investing activities | 37,200 | (9,669) |
Cash flows from financing activities | ||
Common stock dividends | 18,936 | 20,481 |
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 |
Proceeds from issuance of short-term debt | 0 | |
Proceeds from issuance of long-term debt | 0 | 0 |
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | 0 | |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | (37,200) | 10,000 |
Other | (1) | 0 |
Net cash provided by financing activities | (18,265) | 30,481 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Hawaiian Electric (parent only) | Reportable Legal Entities | ||
Cash flows from operating activities | ||
Net cash provided by operating activities | 223,733 | 159,876 |
Cash flows from investing activities | ||
Capital expenditures | (223,803) | (225,907) |
Advances to affiliates | (22,200) | (2,000) |
Other | 2,975 | 4,518 |
Net cash used in investing activities | (243,028) | (223,389) |
Cash flows from financing activities | ||
Common stock dividends | (75,939) | (77,479) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (810) | (810) |
Proceeds from issuance of short-term debt | 25,000 | |
Proceeds from issuance of long-term debt | 120,000 | 75,000 |
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (121,546) | |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 77,353 | 68,914 |
Other | 578 | (304) |
Net cash provided by financing activities | 24,636 | 65,321 |
Net increase (decrease) in cash and cash equivalents | 5,341 | 1,808 |
Cash and cash equivalents, beginning of period | 16,732 | 2,059 |
Cash and cash equivalents, end of period | 22,073 | 3,867 |
HELCO | ||
Cash flows from financing activities | ||
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (70,000) | |
HELCO | Reportable Legal Entities | ||
Cash flows from operating activities | ||
Net cash provided by operating activities | 41,694 | 35,203 |
Cash flows from investing activities | ||
Capital expenditures | (29,119) | (40,457) |
Advances to affiliates | (15,000) | 0 |
Other | (283) | 1,177 |
Net cash used in investing activities | (44,402) | (39,280) |
Cash flows from financing activities | ||
Common stock dividends | (7,635) | (11,467) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (400) | (400) |
Proceeds from issuance of short-term debt | 0 | |
Proceeds from issuance of long-term debt | 70,000 | 15,000 |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 0 | 0 |
Other | 123 | (54) |
Net cash provided by financing activities | (7,912) | 3,079 |
Net increase (decrease) in cash and cash equivalents | (10,620) | (998) |
Cash and cash equivalents, beginning of period | 15,623 | 4,025 |
Cash and cash equivalents, end of period | 5,003 | 3,027 |
Maui Electric | ||
Cash flows from financing activities | ||
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (10,000) | |
Maui Electric | Reportable Legal Entities | ||
Cash flows from operating activities | ||
Net cash provided by operating activities | 36,126 | 19,455 |
Cash flows from investing activities | ||
Capital expenditures | (44,885) | (44,005) |
Advances to affiliates | 0 | 12,000 |
Other | (30) | 3,785 |
Net cash used in investing activities | (44,915) | (28,220) |
Cash flows from financing activities | ||
Common stock dividends | (11,301) | (9,014) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (286) | (286) |
Proceeds from issuance of short-term debt | 0 | |
Proceeds from issuance of long-term debt | 10,000 | 10,000 |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 22,200 | 2,000 |
Other | 85 | (38) |
Net cash provided by financing activities | 10,698 | 2,662 |
Net increase (decrease) in cash and cash equivalents | 1,909 | (6,103) |
Cash and cash equivalents, beginning of period | 3,421 | 6,332 |
Cash and cash equivalents, end of period | 5,330 | 229 |
Other subsidiaries | ||
Cash flows from financing activities | ||
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | 0 | |
Other subsidiaries | Reportable Legal Entities | ||
Cash flows from operating activities | ||
Net cash provided by operating activities | 0 | 0 |
Cash flows from investing activities | ||
Capital expenditures | 0 | 0 |
Advances to affiliates | 0 | 0 |
Other | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities | ||
Common stock dividends | 0 | 0 |
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 |
Proceeds from issuance of short-term debt | 0 | |
Proceeds from issuance of long-term debt | 0 | 0 |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 0 | 0 |
Other | 0 | 0 |
Net cash provided by financing activities | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 101 | 101 |
Cash and cash equivalents, end of period | 101 | 101 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Cash flows from operating activities | ||
Net cash provided by operating activities | 282,618 | 193,722 |
Cash flows from investing activities | ||
Capital expenditures | (297,807) | (310,369) |
Advances to affiliates | 0 | 0 |
Other | 2,662 | 9,811 |
Net cash used in investing activities | (295,145) | (300,558) |
Cash flows from financing activities | ||
Common stock dividends | (75,939) | (77,479) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,496) | (1,496) |
Proceeds from issuance of short-term debt | 25,000 | |
Proceeds from issuance of long-term debt | 200,000 | 100,000 |
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (201,546) | 0 |
Net increase (decrease) in other bank borrowings with original maturities of three months or less | 62,353 | 80,914 |
Other | 785 | (396) |
Net cash provided by financing activities | 9,157 | 101,543 |
Net increase (decrease) in cash and cash equivalents | (3,370) | (5,293) |
Cash and cash equivalents, beginning of period | 35,877 | 12,517 |
Cash and cash equivalents, end of period | $ 32,507 | $ 7,224 |
Bank segment - Income statement
Bank segment - Income statement data (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Noninterest income | ||||
Noninterest income | $ 725,111 | $ 710,168 | $ 1,962,922 | $ 1,907,220 |
Noninterest expense | ||||
Income before income taxes | 78,693 | 77,233 | 189,426 | 190,091 |
Income taxes | 14,803 | 10,862 | 36,390 | 36,473 |
Net income | 63,890 | 66,371 | 153,036 | 153,618 |
American Savings Bank (ASB) | ||||
Interest and dividend income | ||||
Interest and fees on loans | 59,260 | 55,885 | 175,740 | 163,318 |
Interest and dividends on investment securities | 7,599 | 9,300 | 25,762 | 27,130 |
Total interest and dividend income | 66,859 | 65,185 | 201,502 | 190,448 |
Interest expense | ||||
Interest on deposit liabilities | 4,384 | 3,635 | 12,923 | 9,876 |
Interest on other borrowings | 422 | 404 | 1,361 | 1,293 |
Total interest expense | 4,806 | 4,039 | 14,284 | 11,169 |
Net interest income | 62,053 | 61,146 | 187,218 | 179,279 |
Provision for loan losses | 3,315 | 6,033 | 17,873 | 12,337 |
Net interest income after provision for loan losses | 58,738 | 55,113 | 169,345 | 166,942 |
Noninterest income | ||||
Total noninterest income | 16,342 | 15,311 | 46,438 | 42,571 |
Noninterest expense | ||||
Compensation and employee benefits | 25,364 | 23,952 | 76,626 | 72,047 |
Occupancy | 5,694 | 4,363 | 15,843 | 12,837 |
Data processing | 3,763 | 3,583 | 11,353 | 10,587 |
Services | 2,829 | 2,485 | 7,861 | 8,560 |
Equipment | 2,163 | 1,783 | 6,416 | 5,385 |
Office supplies, printing and postage | 1,297 | 1,556 | 4,320 | 4,554 |
Marketing | 1,142 | 993 | 3,455 | 2,723 |
FDIC insurance | (5) | 638 | 1,249 | 2,078 |
Other expense | 3,676 | 4,240 | 12,049 | 12,897 |
Total noninterest expense | 45,923 | 43,593 | 139,172 | 131,668 |
Income before income taxes | 29,157 | 26,831 | 76,611 | 77,845 |
Income taxes | 6,269 | 5,610 | 15,868 | 17,103 |
Net income | 22,888 | 21,221 | 60,743 | 60,742 |
American Savings Bank (ASB) | Fees from other financial services | ||||
Noninterest income | ||||
Noninterest income | 5,085 | 4,543 | 14,445 | 13,941 |
American Savings Bank (ASB) | Fee income on deposit liabilities | ||||
Noninterest income | ||||
Noninterest income | 5,320 | 5,454 | 15,402 | 15,781 |
American Savings Bank (ASB) | Fee income on other financial products | ||||
Noninterest income | ||||
Noninterest income | 1,706 | 1,746 | 5,129 | 5,075 |
American Savings Bank (ASB) | Bank-owned life insurance | ||||
Noninterest income | ||||
Noninterest income | 1,660 | 2,663 | 6,309 | 4,667 |
American Savings Bank (ASB) | Mortgage banking income | ||||
Noninterest income | ||||
Noninterest income | 1,490 | 169 | 3,080 | 1,399 |
American Savings Bank (ASB) | Gains on sale of investment securities, net | ||||
Noninterest income | ||||
Noninterest income | 653 | 0 | 653 | 0 |
American Savings Bank (ASB) | Other income, net | ||||
Noninterest income | ||||
Noninterest income | $ 428 | $ 736 | $ 1,420 | $ 1,708 |
Bank segment - Reconciliation o
Bank segment - Reconciliation of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | $ 771,535 | $ 768,048 | $ 2,148,635 | $ 2,099,199 |
Less: Retirement defined benefits gain (expense)—other than service costs | (648) | (1,276) | (2,172) | (4,673) |
Total expenses | 674,227 | 669,984 | 1,900,756 | 1,850,447 |
Operating income | 97,308 | 98,064 | 247,879 | 248,752 |
Income before income taxes | 78,693 | 77,233 | 189,426 | 190,091 |
American Savings Bank (ASB) | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Interest and dividend income | 66,859 | 65,185 | 201,502 | 190,448 |
Total noninterest income | 16,342 | 15,311 | 46,438 | 42,571 |
Total revenues | 83,201 | 80,496 | 247,940 | 233,019 |
Total interest expense | 4,806 | 4,039 | 14,284 | 11,169 |
Provision for loan losses | 3,315 | 6,033 | 17,873 | 12,337 |
Noninterest expense | 45,923 | 43,593 | 139,172 | 131,668 |
Less: Retirement defined benefits gain (expense)—other than service costs | (196) | 433 | (276) | 1,223 |
Total expenses | 54,240 | 53,232 | 171,605 | 153,951 |
Operating income | 28,961 | 27,264 | 76,335 | 79,068 |
Income before income taxes | $ 29,157 | $ 26,831 | $ 76,611 | $ 77,845 |
Bank segment - Comprehensive in
Bank segment - Comprehensive income data (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | $ 63,419 | $ 42,512 | $ 45,688 | $ 65,900 | $ 46,054 | $ 40,247 | $ 151,619 | $ 152,201 |
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) benefits of $(1,557), $1,876, $(10,194) and $8,335, respectively | 4,253 | (5,123) | 27,846 | (22,768) | ||||
Reclassification adjustment for net realized gains included in net income, net of taxes of $175, nil, $175, and nil, respectively | (478) | 0 | (478) | 0 | ||||
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of (taxes) benefits of $13, $141, $(1,109) and $968, respectively | 2,615 | 5,259 | 7,621 | 15,755 | ||||
Other comprehensive income (loss), net of taxes | 3,297 | $ 13,699 | $ 9,241 | (4,589) | $ (3,825) | $ (12,773) | 26,237 | (21,187) |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 66,716 | 61,311 | 177,856 | 131,014 | ||||
Net unrealized gains (losses) on securities arising during the period, (taxes) benefits | (1,557) | 1,876 | (10,194) | 8,335 | ||||
Reclassification adjustment for net realized gains included in net income, taxes | 175 | 0 | 175 | 0 | ||||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, (taxes) benefits | 741 | 1,832 | 2,482 | 5,486 | ||||
American Savings Bank (ASB) | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income for common stock | 22,888 | 21,221 | 60,743 | 60,742 | ||||
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) benefits of $(1,557), $1,876, $(10,194) and $8,335, respectively | 4,253 | (5,123) | 27,846 | (22,768) | ||||
Reclassification adjustment for net realized gains included in net income, net of taxes of $175, nil, $175, and nil, respectively | (478) | 0 | (478) | 0 | ||||
Retirement benefit plans: | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of (taxes) benefits of $13, $141, $(1,109) and $968, respectively | 34 | 382 | (3,032) | 1,970 | ||||
Other comprehensive income (loss), net of taxes | 3,809 | (4,741) | 24,336 | (20,798) | ||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 26,697 | 16,480 | 85,079 | 39,944 | ||||
Net unrealized gains (losses) on securities arising during the period, (taxes) benefits | (1,557) | 1,876 | (10,194) | 8,335 | ||||
Reclassification adjustment for net realized gains included in net income, taxes | 175 | 0 | 175 | 0 | ||||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, (taxes) benefits | $ 13 | $ 141 | $ (1,109) | $ 968 |
Bank segment - Balance sheet da
Bank segment - Balance sheet data (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||||||||
Available-for-sale investment securities, at fair value | $ 1,210,748 | $ 1,388,533 | ||||||
Held-to-maturity investment securities, at amortized cost | 132,704 | 141,875 | ||||||
Stock in Federal Home Loan Bank, at cost | 9,953 | 9,958 | ||||||
Allowance for loan losses | (53,040) | (52,119) | ||||||
Net loans | 5,031,296 | 4,790,902 | ||||||
Loans held for sale, at lower of cost or fair value | 17,115 | 1,805 | ||||||
Other | 576,263 | 530,364 | ||||||
Goodwill | 82,190 | 82,190 | ||||||
Total assets | 13,517,970 | 13,104,051 | ||||||
Liabilities | ||||||||
Other | 539,987 | 580,788 | ||||||
Total liabilities | 11,240,988 | 10,907,478 | ||||||
Commitments and contingencies | ||||||||
Retained earnings | 590,651 | 543,623 | ||||||
Accumulated other comprehensive loss, net of tax benefits | ||||||||
Accumulated other comprehensive loss, net of tax benefits | (24,373) | (50,610) | ||||||
Total shareholders’ equity | 2,242,689 | $ 2,208,586 | $ 2,183,515 | 2,162,280 | $ 2,132,045 | $ 2,103,018 | $ 2,091,777 | $ 2,097,386 |
Total liabilities and shareholders’ equity | 13,517,970 | 13,104,051 | ||||||
Other assets | ||||||||
Premises and equipment, net | 5,006,394 | 4,830,118 | ||||||
Other | 576,263 | 530,364 | ||||||
Other liabilities | ||||||||
Total other liabilities | 539,987 | 580,788 | ||||||
Balance Sheet related disclosures | ||||||||
Held-to-maturity investment securities | 137,497 | 142,057 | ||||||
Securities sold under agreements to repurchase | 91,000 | 65,000 | ||||||
American Savings Bank (ASB) | ||||||||
Assets | ||||||||
Cash and due from banks | 135,813 | 122,059 | ||||||
Interest-bearing deposits | 1,315 | 4,225 | ||||||
Available-for-sale investment securities, at fair value | 1,210,748 | 1,388,533 | ||||||
Held-to-maturity investment securities, at amortized cost | 132,704 | 141,875 | ||||||
Stock in Federal Home Loan Bank, at cost | 9,953 | 9,958 | ||||||
Loans held for investment | 5,084,336 | 4,843,021 | ||||||
Allowance for loan losses | (53,040) | (52,119) | ||||||
Net loans | 5,031,296 | 4,790,902 | ||||||
Loans held for sale, at lower of cost or fair value | 17,115 | 1,805 | ||||||
Other | 514,116 | 486,347 | ||||||
Goodwill | 82,190 | 82,190 | ||||||
Total assets | 7,135,250 | 7,027,894 | ||||||
Liabilities | ||||||||
Deposit liabilities—noninterest-bearing | 1,885,028 | 1,800,727 | ||||||
Deposit liabilities—interest-bearing | 4,311,195 | 4,358,125 | ||||||
Other borrowings | 129,190 | 110,040 | ||||||
Other | 135,606 | 124,613 | ||||||
Total liabilities | 6,461,019 | 6,393,505 | ||||||
Commitments and contingencies | ||||||||
Common stock | 1 | 1 | ||||||
Additional paid-in capital | 348,933 | 347,170 | ||||||
Retained earnings | 339,029 | 325,286 | ||||||
Accumulated other comprehensive loss, net of tax benefits | ||||||||
Net unrealized gains (losses) on securities | 2,945 | (24,423) | ||||||
Retirement benefit plans | (16,677) | (13,645) | ||||||
Accumulated other comprehensive loss, net of tax benefits | (13,732) | (38,068) | ||||||
Total shareholders’ equity | 674,231 | 634,389 | ||||||
Total liabilities and shareholders’ equity | 7,135,250 | 7,027,894 | ||||||
Other assets | ||||||||
Bank-owned life insurance | 156,077 | 151,172 | ||||||
Premises and equipment, net | 207,659 | 214,415 | ||||||
Accrued interest receivable | 19,743 | 20,140 | ||||||
Mortgage-servicing rights | 8,567 | 8,062 | ||||||
Low-income housing equity investments | 69,286 | 67,626 | ||||||
Real estate acquired in settlement of loans, net | 0 | 406 | ||||||
Real estate held for sale | 9,074 | 0 | ||||||
Other | 43,710 | 24,526 | ||||||
Other | 514,116 | 486,347 | ||||||
Other liabilities | ||||||||
Accrued expenses | 41,264 | 54,084 | ||||||
Federal and state income taxes payable | 9,472 | 2,012 | ||||||
Cashier’s checks | 27,498 | 26,906 | ||||||
Advance payments by borrowers | 5,164 | 10,183 | ||||||
Other | 52,208 | 31,428 | ||||||
Total other liabilities | 135,606 | 124,613 | ||||||
Balance Sheet related disclosures | ||||||||
Held-to-maturity investment securities | 137,497 | 0 | ||||||
Securities sold under agreements to repurchase | 91,200 | 65,000 | ||||||
Advances from Federal Home Loan Bank | $ 38,000 | $ 45,000 |
Bank segment - Components of in
Bank segment - Components of investment securities (Details) $ in Thousands | Sep. 30, 2019USD ($)issue | Dec. 31, 2018USD ($)issue |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | $ 1,206,725 | $ 1,421,897 |
Gross unrealized gains | 8,819 | 954 |
Gross unrealized losses | (4,796) | (34,318) |
Estimated fair value | $ 1,210,748 | $ 1,388,533 |
Gross unrealized losses, Less than 12 months, Number of issues | issue | 12 | 33 |
Gross unrealized losses, Less than 12 months, Fair value | $ 67,163 | $ 178,068 |
Gross unrealized losses, Less than 12 months, Amount | $ (252) | $ (1,907) |
Gross unrealized losses, 12 months or longer, Number of issues | issue | 89 | 164 |
Gross unrealized losses, 12 months or longer, Fair value | $ 421,898 | $ 1,066,295 |
Gross unrealized losses, 12 months or longer, Amount | (4,544) | (32,411) |
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized cost | 132,704 | 141,875 |
Gross unrealized gains | 4,793 | 1,446 |
Gross unrealized losses | 0 | (1,264) |
Held-to-maturity investment securities | $ 137,497 | $ 142,057 |
Less Than 12 Months: Number Of Issues | issue | 0 | 3 |
Less than 12 Months: Fair value | $ 0 | $ 29,814 |
Less than 12 Months: Amount | $ 0 | $ (400) |
12 months or longer: Number of issues | issue | 0 | 2 |
12 months or longer: Fair value | $ 0 | $ 31,505 |
12 months or longer: Amount | 0 | (864) |
U.S. Treasury and federal agency obligations | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 126,084 | 156,694 |
Gross unrealized gains | 822 | 62 |
Gross unrealized losses | (198) | (2,407) |
Estimated fair value | $ 126,708 | $ 154,349 |
Gross unrealized losses, Less than 12 months, Number of issues | issue | 0 | 5 |
Gross unrealized losses, Less than 12 months, Fair value | $ 0 | $ 25,882 |
Gross unrealized losses, Less than 12 months, Amount | $ 0 | $ (208) |
Gross unrealized losses, 12 months or longer, Number of issues | issue | 4 | 19 |
Gross unrealized losses, 12 months or longer, Fair value | $ 32,686 | $ 118,405 |
Gross unrealized losses, 12 months or longer, Amount | (198) | (2,199) |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 1,017,256 | 1,192,169 |
Gross unrealized gains | 6,647 | 789 |
Gross unrealized losses | (4,598) | (31,542) |
Estimated fair value | $ 1,019,305 | $ 1,161,416 |
Gross unrealized losses, Less than 12 months, Number of issues | issue | 12 | 22 |
Gross unrealized losses, Less than 12 months, Fair value | $ 67,163 | $ 129,011 |
Gross unrealized losses, Less than 12 months, Amount | $ (252) | $ (1,330) |
Gross unrealized losses, 12 months or longer, Number of issues | issue | 85 | 145 |
Gross unrealized losses, 12 months or longer, Fair value | $ 389,212 | $ 947,890 |
Gross unrealized losses, 12 months or longer, Amount | (4,346) | (30,212) |
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized cost | 132,704 | 141,875 |
Gross unrealized gains | 4,793 | 1,446 |
Gross unrealized losses | 0 | (1,264) |
Held-to-maturity investment securities | $ 137,497 | $ 142,057 |
Less Than 12 Months: Number Of Issues | issue | 0 | 3 |
Less than 12 Months: Fair value | $ 0 | $ 29,814 |
Less than 12 Months: Amount | $ 0 | $ (400) |
12 months or longer: Number of issues | issue | 0 | 2 |
12 months or longer: Fair value | $ 0 | $ 31,505 |
12 months or longer: Amount | 0 | (864) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 34,926 | 49,398 |
Gross unrealized gains | 1,350 | 103 |
Gross unrealized losses | 0 | (369) |
Estimated fair value | $ 36,276 | $ 49,132 |
Gross unrealized losses, Less than 12 months, Number of issues | issue | 0 | 6 |
Gross unrealized losses, Less than 12 months, Fair value | $ 0 | $ 23,175 |
Gross unrealized losses, Less than 12 months, Amount | $ 0 | $ (369) |
Gross unrealized losses, 12 months or longer, Number of issues | issue | 0 | 0 |
Gross unrealized losses, 12 months or longer, Fair value | $ 0 | $ 0 |
Gross unrealized losses, 12 months or longer, Amount | 0 | 0 |
Mortgage revenue bonds | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 28,459 | 23,636 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | $ 28,459 | $ 23,636 |
Gross unrealized losses, Less than 12 months, Number of issues | issue | 0 | 0 |
Gross unrealized losses, Less than 12 months, Fair value | $ 0 | $ 0 |
Gross unrealized losses, Less than 12 months, Amount | $ 0 | $ 0 |
Gross unrealized losses, 12 months or longer, Number of issues | issue | 0 | 0 |
Gross unrealized losses, 12 months or longer, Fair value | $ 0 | $ 0 |
Gross unrealized losses, 12 months or longer, Amount | $ 0 | $ 0 |
Bank segment - Contractual matu
Bank segment - Contractual maturities of securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Due in one year or less | $ 47,046 | |
Due after one year through five years | 89,085 | |
Due after five years through ten years | 37,911 | |
Due after ten years | 15,427 | |
Total amortized cost | 189,469 | |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,017,256 | |
Amortized cost | 1,206,725 | $ 1,421,897 |
Held-to-Maturity, Debt Securities, Amortized Cost [Abstract] | ||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 132,704 | |
Amortized cost | 132,704 | 141,875 |
Available-for-sale Securities, Debt Securities, Fair Value [Abstract] | ||
Due in one year or less | 47,021 | |
Due after one year through five years | 90,675 | |
Due after five years through ten years | 38,320 | |
Due after ten years | 15,427 | |
Total fair value | 191,443 | |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,019,305 | |
Total available-for-sale securities | 1,210,748 | 1,388,533 |
Held-to-maturity Securities, Debt Securities, Fair Value [Abstract] | ||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 137,497 | |
Total held-to-maturity securities | $ 137,497 | $ 142,057 |
Bank segment - Available-for-sa
Bank segment - Available-for-sale securities, narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Bank Subsidiary [Abstract] | ||||
Proceeds from sale of available-for-sale investment securities | $ 19,800 | $ 0 | $ 19,810 | $ 0 |
Gross realized gains | $ 700 | $ 0 | $ 700 | $ 0 |
Bank segment - Loans receivable
Bank segment - Loans receivable (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 5,083,656 | $ 4,843,634 |
Less: Deferred fees and discounts | 680 | (613) |
Allowance for loan losses | (53,040) | (52,119) |
Net loans | $ 5,031,296 | 4,790,902 |
Minimum benchmark percentage of loan to appraisal ratio which mortgage insurance is required | 80.00% | |
Real Estate | Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 4,175,702 | 3,989,741 |
Real Estate | Residential 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 2,183,888 | 2,143,397 |
Real Estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 810,971 | 748,398 |
Real Estate | Home equity line of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 1,079,262 | 978,237 |
Real Estate | Residential land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 15,095 | 13,138 |
Real Estate | Commercial construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 76,382 | 92,264 |
Real Estate | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 10,104 | 14,307 |
Commercial | Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 638,213 | 587,891 |
Consumer | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 269,741 | $ 266,002 |
Bank segment - Allowance for lo
Bank segment - Allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | $ 58,425 | $ 52,803 | $ 52,119 | $ 53,637 | |
Charge-offs | (10,231) | (5,377) | (22,046) | (14,831) | |
Recoveries | 1,531 | 668 | 5,094 | 2,984 | |
Provision | 3,315 | 6,033 | 17,873 | 12,337 | |
Valuation allowance, balance at the end of the period | 53,040 | 54,127 | 53,040 | 54,127 | |
Ending balance: individually evaluated for impairment | 2,822 | 2,822 | $ 2,222 | ||
Ending balance: collectively evaluated for impairment | 50,218 | 50,218 | 49,897 | ||
Financing Receivables: | |||||
Total financing receivables | 5,083,656 | 5,083,656 | 4,843,634 | ||
Ending balance: individually evaluated for impairment | 43,464 | 43,464 | 39,697 | ||
Ending balance: collectively evaluated for impairment | 5,040,192 | 5,040,192 | 4,803,937 | ||
Residential 1-4 family | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 2,015 | 2,939 | 1,976 | 2,902 | |
Charge-offs | (7) | 0 | (26) | (31) | |
Recoveries | 27 | 5 | 644 | 73 | |
Provision | (56) | (623) | (615) | (623) | |
Valuation allowance, balance at the end of the period | 1,979 | 2,321 | 1,979 | 2,321 | |
Ending balance: individually evaluated for impairment | 906 | 906 | 876 | ||
Ending balance: collectively evaluated for impairment | 1,073 | 1,073 | 1,100 | ||
Financing Receivables: | |||||
Total financing receivables | 2,183,888 | 2,183,888 | 2,143,397 | ||
Ending balance: individually evaluated for impairment | 16,556 | 16,556 | 16,494 | ||
Ending balance: collectively evaluated for impairment | 2,167,332 | 2,167,332 | 2,126,903 | ||
Commercial real estate | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 15,811 | 15,298 | 14,505 | 15,796 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | (396) | (1,033) | 910 | (1,531) | |
Valuation allowance, balance at the end of the period | 15,415 | 14,265 | 15,415 | 14,265 | |
Ending balance: individually evaluated for impairment | 7 | 7 | 7 | ||
Ending balance: collectively evaluated for impairment | 15,408 | 15,408 | 14,498 | ||
Financing Receivables: | |||||
Total financing receivables | 810,971 | 810,971 | 748,398 | ||
Ending balance: individually evaluated for impairment | 877 | 877 | 915 | ||
Ending balance: collectively evaluated for impairment | 810,094 | 810,094 | 747,483 | ||
Home equity line of credit | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 6,881 | 7,334 | 6,371 | 7,522 | |
Charge-offs | (13) | (80) | (32) | (224) | |
Recoveries | 4 | 71 | 13 | 98 | |
Provision | 135 | (347) | 655 | (418) | |
Valuation allowance, balance at the end of the period | 7,007 | 6,978 | 7,007 | 6,978 | |
Ending balance: individually evaluated for impairment | 500 | 500 | 701 | ||
Ending balance: collectively evaluated for impairment | 6,507 | 6,507 | 5,670 | ||
Financing Receivables: | |||||
Total financing receivables | 1,079,262 | 1,079,262 | 978,237 | ||
Ending balance: individually evaluated for impairment | 12,909 | 12,909 | 14,800 | ||
Ending balance: collectively evaluated for impairment | 1,066,353 | 1,066,353 | 963,437 | ||
Residential land | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 537 | 642 | 479 | 896 | |
Charge-offs | 0 | (1) | (4) | (18) | |
Recoveries | 28 | 122 | 42 | 173 | |
Provision | (104) | (296) | (56) | (584) | |
Valuation allowance, balance at the end of the period | 461 | 467 | 461 | 467 | |
Ending balance: individually evaluated for impairment | 0 | 0 | 6 | ||
Ending balance: collectively evaluated for impairment | 461 | 461 | 473 | ||
Financing Receivables: | |||||
Total financing receivables | 15,095 | 15,095 | 13,138 | ||
Ending balance: individually evaluated for impairment | 3,194 | 3,194 | 2,059 | ||
Ending balance: collectively evaluated for impairment | 11,901 | 11,901 | 11,079 | ||
Commercial construction | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 2,046 | 4,616 | 2,790 | 4,671 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 196 | (356) | (548) | (411) | |
Valuation allowance, balance at the end of the period | 2,242 | 4,260 | 2,242 | 4,260 | |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 2,242 | 2,242 | 2,790 | ||
Financing Receivables: | |||||
Total financing receivables | 76,382 | 76,382 | 92,264 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 76,382 | 76,382 | 92,264 | ||
Residential construction | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 2 | 4 | 4 | 12 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 1 | 0 | (1) | (8) | |
Valuation allowance, balance at the end of the period | 3 | 4 | 3 | 4 | |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 3 | 3 | 4 | ||
Financing Receivables: | |||||
Total financing receivables | 10,104 | 10,104 | 14,307 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 10,104 | 10,104 | 14,307 | ||
Commercial loans | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 13,073 | 10,161 | 9,225 | 10,851 | |
Charge-offs | (4,900) | (788) | (6,012) | (1,930) | |
Recoveries | 726 | 105 | 2,187 | 1,555 | |
Provision | (517) | 1,255 | 2,982 | 257 | |
Valuation allowance, balance at the end of the period | 8,382 | 10,733 | 8,382 | 10,733 | |
Ending balance: individually evaluated for impairment | 905 | 905 | 628 | ||
Ending balance: collectively evaluated for impairment | 7,477 | 7,477 | 8,597 | ||
Financing Receivables: | |||||
Total financing receivables | 638,213 | 638,213 | 587,891 | ||
Ending balance: individually evaluated for impairment | 9,370 | 9,370 | 5,340 | ||
Ending balance: collectively evaluated for impairment | 628,843 | 628,843 | 582,551 | ||
Consumer loans | |||||
Allowance for loan losses: | |||||
Valuation allowance, balance at the beginning of the period | 18,060 | 11,809 | 16,769 | 10,987 | |
Charge-offs | (5,311) | (4,508) | (15,972) | (12,628) | |
Recoveries | 746 | 365 | 2,208 | 1,085 | |
Provision | 4,056 | 7,433 | 14,546 | 15,655 | |
Valuation allowance, balance at the end of the period | 17,551 | $ 15,099 | 17,551 | $ 15,099 | |
Ending balance: individually evaluated for impairment | 504 | 504 | 4 | ||
Ending balance: collectively evaluated for impairment | 17,047 | 17,047 | 16,765 | ||
Financing Receivables: | |||||
Total financing receivables | 269,741 | 269,741 | 266,002 | ||
Ending balance: individually evaluated for impairment | 558 | 558 | 89 | ||
Ending balance: collectively evaluated for impairment | $ 269,183 | $ 269,183 | $ 265,913 |
Bank segment - Credit risk prof
Bank segment - Credit risk profile - assigned grades (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | $ 5,083,656 | $ 4,843,634 |
Commercial Portfolio Segment | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 1,525,566 | 1,428,553 |
Commercial Portfolio Segment | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 1,391,909 | 1,295,902 |
Commercial Portfolio Segment | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 43,860 | 44,469 |
Commercial Portfolio Segment | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 86,111 | 88,182 |
Commercial Portfolio Segment | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 3,686 | 0 |
Commercial Portfolio Segment | Loss | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | 0 |
Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 810,971 | 748,398 |
Commercial real estate | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 723,864 | 658,288 |
Commercial real estate | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 18,038 | 32,871 |
Commercial real estate | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 69,069 | 57,239 |
Commercial real estate | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | 0 |
Commercial real estate | Loss | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | 0 |
Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 76,382 | 92,264 |
Commercial construction | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 74,093 | 89,974 |
Commercial construction | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | 0 |
Commercial construction | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 2,289 | 2,290 |
Commercial construction | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | 0 |
Commercial construction | Loss | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 0 | 0 |
Commercial loans | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 638,213 | 587,891 |
Commercial loans | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 593,952 | 547,640 |
Commercial loans | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 25,822 | 11,598 |
Commercial loans | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 14,753 | 28,653 |
Commercial loans | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | 3,686 | 0 |
Commercial loans | Loss | ||
Credit risk profile by internally assigned grade for loans | ||
Loans and leases receivable before fees, gross | $ 0 | $ 0 |
Bank segment - Credit risk pr_2
Bank segment - Credit risk profile - payment activity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Credit risk profile based on payment activity for loans | ||
Total past due | $ 20,897 | $ 25,969 |
Current | 5,062,759 | 4,817,665 |
Total financing receivables | 5,083,656 | 4,843,634 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 7,834 | 10,440 |
60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 4,718 | 6,901 |
Greater than 90 days | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 8,345 | 8,628 |
Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 5,421 | 8,869 |
Current | 2,178,467 | 2,134,528 |
Total financing receivables | 2,183,888 | 2,143,397 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Residential 1-4 family | 30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 2,162 | 3,757 |
Residential 1-4 family | 60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 807 | 2,773 |
Residential 1-4 family | Greater than 90 days | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 2,452 | 2,339 |
Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 347 | 0 |
Current | 810,624 | 748,398 |
Total financing receivables | 810,971 | 748,398 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Commercial real estate | 30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 347 | 0 |
Commercial real estate | 60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Commercial real estate | Greater than 90 days | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 3,677 | 4,540 |
Current | 1,075,585 | 973,697 |
Total financing receivables | 1,079,262 | 978,237 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Home equity line of credit | 30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 736 | 1,139 |
Home equity line of credit | 60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 814 | 681 |
Home equity line of credit | Greater than 90 days | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 2,127 | 2,720 |
Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 25 | 328 |
Current | 15,070 | 12,810 |
Total financing receivables | 15,095 | 13,138 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Residential land | 30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 9 |
Residential land | 60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Residential land | Greater than 90 days | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 25 | 319 |
Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Current | 76,382 | 92,264 |
Total financing receivables | 76,382 | 92,264 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Commercial construction | 30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Commercial construction | 60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Commercial construction | Greater than 90 days | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Current | 10,104 | 14,307 |
Total financing receivables | 10,104 | 14,307 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Residential construction | 30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Residential construction | 60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Residential construction | Greater than 90 days | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Commercial loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 1,813 | 1,144 |
Current | 636,400 | 586,747 |
Total financing receivables | 638,213 | 587,891 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Commercial loans | 30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 359 | 315 |
Commercial loans | 60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 174 | 281 |
Commercial loans | Greater than 90 days | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 1,280 | 548 |
Consumer loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 9,614 | 11,088 |
Current | 260,127 | 254,914 |
Total financing receivables | 269,741 | 266,002 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Consumer loans | 30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 4,230 | 5,220 |
Consumer loans | 60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 2,923 | 3,166 |
Consumer loans | Greater than 90 days | ||
Credit risk profile based on payment activity for loans | ||
Total past due | $ 2,461 | $ 2,702 |
Bank segment - Credit risk pr_3
Bank segment - Credit risk profile - summary (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | $ 32,028 | $ 27,295 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 26,903 | 25,917 |
Residential 1-4 family | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 12,076 | 12,037 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 9,981 | 10,194 |
Commercial real estate | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 0 | 0 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 877 | 915 |
Home equity line of credit | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 7,859 | 6,348 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 10,686 | 11,597 |
Residential land | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 457 | 436 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 2,737 | 1,622 |
Commercial construction | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 0 | 0 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 0 | 0 |
Residential construction | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 0 | 0 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 0 | 0 |
Commercial loans | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 7,004 | 4,278 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | 2,564 | 1,527 |
Consumer loans | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 4,632 | 4,196 |
Accruing loans 90 days or more past due | 0 | 0 |
Total troubled debt restructuring loans not included above | $ 58 | $ 62 |
Bank segment - Principal balanc
Bank segment - Principal balance of impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Recorded investment: | |||||
With no related allowance recorded | $ 20,028 | $ 20,028 | $ 16,349 | ||
With an allowance recorded | 23,436 | 23,436 | 23,348 | ||
Recorded investment | 43,464 | 43,464 | 39,697 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 26,138 | 26,138 | 18,372 | ||
With an allowance recorded | 23,519 | 23,519 | 23,580 | ||
Unpaid principal balance | 49,657 | 49,657 | 41,952 | ||
Related Allowance | 2,822 | 2,822 | 2,222 | ||
Average recorded investment: | |||||
With no related allowance recorded | 18,397 | $ 16,895 | 17,610 | $ 15,357 | |
With an allowance recorded | 29,395 | 23,746 | 29,240 | 21,916 | |
Average recorded investment | 47,792 | 40,641 | 46,850 | 37,273 | |
Interest income recognized: | |||||
With no related allowance recorded | 470 | 274 | 833 | 473 | |
With an allowance recorded | 288 | 235 | 826 | 694 | |
Interest income recognized | 758 | 509 | 1,659 | 1,167 | |
Residential 1-4 family | |||||
Recorded investment: | |||||
With no related allowance recorded | 8,277 | 8,277 | 7,822 | ||
With an allowance recorded | 8,279 | 8,279 | 8,672 | ||
Recorded investment | 16,556 | 16,556 | 16,494 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 8,877 | 8,877 | 8,333 | ||
With an allowance recorded | 8,332 | 8,332 | 8,875 | ||
Unpaid principal balance | 17,209 | 17,209 | 17,208 | ||
Related Allowance | 906 | 906 | 876 | ||
Average recorded investment: | |||||
With no related allowance recorded | 8,562 | 8,940 | 8,515 | 8,779 | |
With an allowance recorded | 8,296 | 8,820 | 8,377 | 8,909 | |
Average recorded investment | 16,858 | 17,760 | 16,892 | 17,688 | |
Interest income recognized: | |||||
With no related allowance recorded | 175 | 239 | 422 | 396 | |
With an allowance recorded | 86 | 84 | 265 | 274 | |
Interest income recognized | 261 | 323 | 687 | 670 | |
Commercial real estate | |||||
Recorded investment: | |||||
With no related allowance recorded | 0 | 0 | 0 | ||
With an allowance recorded | 877 | 877 | 915 | ||
Recorded investment | 877 | 877 | 915 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 0 | 0 | 0 | ||
With an allowance recorded | 877 | 877 | 915 | ||
Unpaid principal balance | 877 | 877 | 915 | ||
Related Allowance | 7 | 7 | 7 | ||
Average recorded investment: | |||||
With no related allowance recorded | 0 | 0 | 0 | 0 | |
With an allowance recorded | 881 | 985 | 894 | 997 | |
Average recorded investment | 881 | 985 | 894 | 997 | |
Interest income recognized: | |||||
With no related allowance recorded | 0 | 0 | 0 | 0 | |
With an allowance recorded | 9 | 11 | 28 | 32 | |
Interest income recognized | 9 | 11 | 28 | 32 | |
Home equity line of credit | |||||
Recorded investment: | |||||
With no related allowance recorded | 1,806 | 1,806 | 2,743 | ||
With an allowance recorded | 11,103 | 11,103 | 12,057 | ||
Recorded investment | 12,909 | 12,909 | 14,800 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 1,967 | 1,967 | 3,004 | ||
With an allowance recorded | 11,133 | 11,133 | 12,086 | ||
Unpaid principal balance | 13,100 | 13,100 | 15,090 | ||
Related Allowance | 500 | 500 | 701 | ||
Average recorded investment: | |||||
With no related allowance recorded | 1,797 | 2,234 | 2,091 | 2,103 | |
With an allowance recorded | 11,332 | 12,090 | 11,606 | 10,083 | |
Average recorded investment | 13,129 | 14,324 | 13,697 | 12,186 | |
Interest income recognized: | |||||
With no related allowance recorded | 12 | 23 | 78 | 35 | |
With an allowance recorded | 143 | 111 | 425 | 288 | |
Interest income recognized | 155 | 134 | 503 | 323 | |
Residential land | |||||
Recorded investment: | |||||
With no related allowance recorded | 3,194 | 3,194 | 2,030 | ||
With an allowance recorded | 0 | 0 | 29 | ||
Recorded investment | 3,194 | 3,194 | 2,059 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 3,398 | 3,398 | 2,228 | ||
With an allowance recorded | 0 | 0 | 29 | ||
Unpaid principal balance | 3,398 | 3,398 | 2,257 | ||
Related Allowance | 0 | 0 | 6 | ||
Average recorded investment: | |||||
With no related allowance recorded | 3,205 | 1,773 | 2,507 | 1,358 | |
With an allowance recorded | 0 | 20 | 36 | 45 | |
Average recorded investment | 3,205 | 1,793 | 2,543 | 1,403 | |
Interest income recognized: | |||||
With no related allowance recorded | 40 | 6 | 90 | 16 | |
With an allowance recorded | 0 | 0 | 0 | 3 | |
Interest income recognized | 40 | 6 | 90 | 19 | |
Commercial construction | |||||
Recorded investment: | |||||
With no related allowance recorded | 0 | 0 | 0 | ||
With an allowance recorded | 0 | 0 | 0 | ||
Recorded investment | 0 | 0 | 0 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 0 | 0 | 0 | ||
With an allowance recorded | 0 | 0 | 0 | ||
Unpaid principal balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average recorded investment: | |||||
With no related allowance recorded | 0 | 0 | 0 | 0 | |
With an allowance recorded | 0 | 0 | 0 | 0 | |
Average recorded investment | 0 | 0 | 0 | 0 | |
Interest income recognized: | |||||
With no related allowance recorded | 0 | 0 | 0 | 0 | |
With an allowance recorded | 0 | 0 | 0 | 0 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Residential construction | |||||
Recorded investment: | |||||
With no related allowance recorded | 0 | 0 | 0 | ||
With an allowance recorded | 0 | 0 | 0 | ||
Recorded investment | 0 | 0 | 0 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 0 | 0 | 0 | ||
With an allowance recorded | 0 | 0 | 0 | ||
Unpaid principal balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average recorded investment: | |||||
With no related allowance recorded | 0 | 0 | 0 | 0 | |
With an allowance recorded | 0 | 0 | 0 | 0 | |
Average recorded investment | 0 | 0 | 0 | 0 | |
Interest income recognized: | |||||
With no related allowance recorded | 0 | 0 | 0 | 0 | |
With an allowance recorded | 0 | 0 | 0 | 0 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Commercial loans | |||||
Recorded investment: | |||||
With no related allowance recorded | 6,749 | 6,749 | 3,722 | ||
With an allowance recorded | 2,621 | 2,621 | 1,618 | ||
Recorded investment | 9,370 | 9,370 | 5,340 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 11,894 | 11,894 | 4,775 | ||
With an allowance recorded | 2,621 | 2,621 | 1,618 | ||
Unpaid principal balance | 14,515 | 14,515 | 6,393 | ||
Related Allowance | 905 | 905 | 628 | ||
Average recorded investment: | |||||
With no related allowance recorded | 4,812 | 3,915 | 4,470 | 3,099 | |
With an allowance recorded | 8,330 | 1,774 | 8,026 | 1,824 | |
Average recorded investment | 13,142 | 5,689 | 12,496 | 4,923 | |
Interest income recognized: | |||||
With no related allowance recorded | 239 | 6 | 239 | 26 | |
With an allowance recorded | 38 | 28 | 94 | 94 | |
Interest income recognized | 277 | 34 | 333 | 120 | |
Consumer loans | |||||
Recorded investment: | |||||
With no related allowance recorded | 2 | 2 | 32 | ||
With an allowance recorded | 556 | 556 | 57 | ||
Recorded investment | 558 | 558 | 89 | ||
Unpaid principal balance: | |||||
With no related allowance recorded | 2 | 2 | 32 | ||
With an allowance recorded | 556 | 556 | 57 | ||
Unpaid principal balance | 558 | 558 | 89 | ||
Related Allowance | 504 | 504 | $ 4 | ||
Average recorded investment: | |||||
With no related allowance recorded | 21 | 33 | 27 | 18 | |
With an allowance recorded | 556 | 57 | 301 | 58 | |
Average recorded investment | 577 | 90 | 328 | 76 | |
Interest income recognized: | |||||
With no related allowance recorded | 4 | 0 | 4 | 0 | |
With an allowance recorded | 12 | 1 | 14 | 3 | |
Interest income recognized | $ 16 | $ 1 | $ 18 | $ 3 |
Bank segment - Loan modificatio
Bank segment - Loan modifications (Details) - Troubled debt restructurings real estate loans $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($)contract | Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 5 | 26 | 22 | 69 |
Outstanding recorded investment | $ 949 | $ 3,596 | $ 4,922 | $ 10,691 |
Net increase in allowance | $ 58 | $ 476 | $ 468 | $ 1,167 |
Residential 1-4 family | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 1 | 2 | 10 | 2 |
Outstanding recorded investment | $ 324 | $ 427 | $ 1,563 | $ 427 |
Net increase in allowance | $ 0 | $ 19 | $ 165 | $ 19 |
Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Net increase in allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Home equity line of credit | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 0 | 16 | 3 | 52 |
Outstanding recorded investment | $ 0 | $ 1,571 | $ 429 | $ 6,540 |
Net increase in allowance | $ 0 | $ 283 | $ 85 | $ 930 |
Residential land | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 1 | 2 | 3 | 2 |
Outstanding recorded investment | $ 350 | $ 1,343 | $ 1,169 | $ 1,343 |
Net increase in allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial construction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Net increase in allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Residential construction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Net increase in allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 3 | 6 | 6 | 13 |
Outstanding recorded investment | $ 275 | $ 255 | $ 1,761 | $ 2,381 |
Net increase in allowance | $ 58 | $ 174 | $ 218 | $ 218 |
Consumer loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Net increase in allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Bank segment - Troubled debt re
Bank segment - Troubled debt restructuring - narrative (Details) - Troubled debt restructurings real estate loans - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Troubled debt restructurings | ||
Financing receivable modifications minimum, period of payment default of loans determined to be TDRs (in days) | 90 days | |
Commitments to lend additional funds to borrows with impaired or modified loans | $ 0 | $ 0 |
Consumer mortgage loans collateralized by residential real estate property in foreclosure process | $ 4,300,000 | $ 4,200,000 |
Bank segment - Troubled debt _2
Bank segment - Troubled debt restructuring that subsequently defaulted (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($)contract | Sep. 30, 2018USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of contracts | contract | 0 | 2 |
Recorded investment | $ | $ 0 | $ 372 |
Residential 1-4 family | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of contracts | contract | 0 | 0 |
Recorded investment | $ | $ 0 | $ 0 |
Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of contracts | contract | 0 | 0 |
Recorded investment | $ | $ 0 | $ 0 |
Home equity line of credit | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of contracts | contract | 0 | 1 |
Recorded investment | $ | $ 0 | $ 81 |
Residential land | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of contracts | contract | 0 | 0 |
Recorded investment | $ | $ 0 | $ 0 |
Commercial construction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of contracts | contract | 0 | 0 |
Recorded investment | $ | $ 0 | $ 0 |
Residential construction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of contracts | contract | 0 | 0 |
Recorded investment | $ | $ 0 | $ 0 |
Commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of contracts | contract | 0 | 1 |
Recorded investment | $ | $ 0 | $ 291 |
Consumer loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of contracts | contract | 0 | 0 |
Recorded investment | $ | $ 0 | $ 0 |
Bank segment - Mortgage servici
Bank segment - Mortgage servicing rights (Details) - American Savings Bank (ASB) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | |
Servicing Asset at Amortized Cost [Line Items] | |||||||
Repurchase reserve | $ 100 | $ 100 | |||||
Mortgage service fees | $ 800 | $ 700 | $ 2,200 | $ 2,200 | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||
Servicing asset - beginning balance | 8,062 | ||||||
Servicing asset - ending balance | 8,567 | 8,567 | |||||
Residential loan | |||||||
Servicing Asset at Amortized Cost [Line Items] | |||||||
Proceeds from sale of mortgage loans | 87,800 | 31,900 | 177,300 | 109,300 | |||
Gain on sale of mortgage loans | 1,500 | 200 | 3,100 | 1,400 | |||
Servicing contracts | |||||||
Servicing Asset at Amortized Cost [Line Items] | |||||||
Gross carrying amount | 20,413 | $ 18,556 | |||||
Accumulated amortization | (11,846) | (10,494) | |||||
Valuation allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net carrying amount | 8,567 | 8,062 | $ 8,426 | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||
Servicing asset - beginning balance | 8,103 | 8,509 | 8,062 | 8,639 | |||
Amount capitalized | 995 | 305 | 1,857 | 1,032 | |||
Amortization | (531) | (388) | (1,352) | (1,245) | |||
Other-than-temporary impairment | 0 | 0 | 0 | 0 | |||
Servicing asset - ending balance | 8,567 | 8,426 | 8,567 | 8,426 | |||
Valuation Allowance [Roll Forward] | |||||||
Valuation allowance, beginning balance | 0 | 0 | 0 | 0 | |||
Provision (recovery) | 0 | 0 | 0 | 0 | |||
Other-than-temporary impairment | 0 | 0 | 0 | 0 | |||
Valuation allowance, ending balance | $ 0 | $ 0 | $ 0 | $ 0 | |||
Unpaid principal balance | 1,232,240 | 1,188,514 | |||||
Prepayment rate: | |||||||
25 basis points adverse rate change | (1,058) | (250) | |||||
50 basis points adverse rate change | (2,093) | (566) | |||||
Discount rate: | |||||||
25 basis points adverse rate change | (90) | (139) | |||||
50 basis points adverse rate change | $ (180) | $ (275) | |||||
Servicing contracts | Note rate | |||||||
Valuation Allowance [Roll Forward] | |||||||
Weighted average measurement input | 0.0399 | 0.0398 | |||||
Servicing contracts | Discount rate | |||||||
Valuation Allowance [Roll Forward] | |||||||
Weighted average measurement input | 0.093 | 0.100 | |||||
Servicing contracts | Prepayment speed | |||||||
Valuation Allowance [Roll Forward] | |||||||
Weighted average measurement input | 0.128 | 0.065 |
Bank segment - Other borrowings
Bank segment - Other borrowings (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Offsetting Liabilities [Line Items] | ||
Gross amount of recognized liabilities | $ 91 | $ 65 |
Gross amount offset in the Balance Sheets | 0 | 0 |
Securities sold under agreements to repurchase | 91 | 65 |
Commercial account holders | ||
Offsetting Liabilities [Line Items] | ||
Securities sold under agreements to repurchase | 91 | 65 |
Securities sold under agreements to repurchase collateral, financial instruments | 111 | 92 |
Securities sold under agreements to repurchase, cash collateral pledged | 0 | 0 |
American Savings Bank (ASB) | ||
Offsetting Liabilities [Line Items] | ||
FHLB advances | 38 | |
Securities sold under agreements to repurchase | $ 91.2 | $ 65 |
Bank segment - Derivatives (Det
Bank segment - Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Not designated as a hedging instrument | |||||
Derivative instrument | |||||
Asset derivatives | $ 486 | $ 486 | $ 91 | ||
Liability derivatives | 92 | 92 | 43 | ||
Net gains (losses) recognized in the Statement of Income | 36 | $ (186) | 346 | $ (107) | |
Interest rate lock commitments | |||||
Derivative instrument | |||||
Notional amount | 42,073 | 42,073 | 10,180 | ||
Fair value | 470 | 470 | 91 | ||
Interest rate lock commitments | Not designated as a hedging instrument | |||||
Derivative instrument | |||||
Asset derivatives | 477 | 477 | 91 | ||
Liability derivatives | 7 | 7 | 0 | ||
Interest rate lock commitments | Not designated as a hedging instrument | Mortgage banking income | |||||
Derivative instrument | |||||
Net gains (losses) recognized in the Statement of Income | (3) | (248) | 379 | (131) | |
Forward commitments | |||||
Derivative instrument | |||||
Notional amount | 55,791 | 55,791 | 10,132 | ||
Fair value | (76) | (76) | (43) | ||
Forward commitments | Not designated as a hedging instrument | |||||
Derivative instrument | |||||
Asset derivatives | 9 | 9 | 0 | ||
Liability derivatives | 85 | 85 | $ 43 | ||
Forward commitments | Not designated as a hedging instrument | Mortgage banking income | |||||
Derivative instrument | |||||
Net gains (losses) recognized in the Statement of Income | $ 39 | $ 62 | $ (33) | $ 24 |
Bank segment - Contingencies (D
Bank segment - Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
American Savings Bank (ASB) | ||
Loss Contingencies [Line Items] | ||
Unfunded commitments to fund the company's LIHTC | $ 20.7 | $ 18.1 |
Credit agreements - Narrative (
Credit agreements - Narrative (Details) | Sep. 30, 2019USD ($)Institution |
Debt Disclosure [Abstract] | |
Number of financial institutions | Institution | 8 |
Line of credit facility | |
Credit agreement | |
Revolving noncollateralized credit facility with a letter of credit sub-facility | $ 150,000,000 |
Line of credit facility | Hawaiian Electric Company, Inc. and Subsidiaries | |
Credit agreement | |
Revolving noncollateralized credit facility with a letter of credit sub-facility | $ 200,000,000 |
Credit agreements - Summary of
Credit agreements - Summary of Debt Instruments (Details) - USD ($) $ in Thousands | Jul. 26, 2019 | May 15, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 10, 2019 | Jul. 18, 2019 | May 13, 2019 |
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, redeemed | $ 204,278 | $ 1,867 | |||||
HELCO | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, redeemed | 70,000 | ||||||
Maui Electric | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, redeemed | $ 10,000 | ||||||
Unsecured Notes | Series 2019A | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, issued | $ 50,000 | ||||||
Fixed coupon interest rate | 4.21% | ||||||
Unsecured Notes | Series 2019A | Hawaiian Electric (parent only) | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, issued | $ 30,000 | ||||||
Unsecured Notes | Series 2019A | HELCO | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, issued | 10,000 | ||||||
Unsecured Notes | Series 2019A | Maui Electric | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, issued | $ 10,000 | ||||||
Unsecured Notes | 2004 Junior subordinated deferrable interest debentures redeemed | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, redeemed | $ 51,500 | ||||||
Fixed coupon interest rate | 6.50% | ||||||
Unsecured Notes | 2004 Junior subordinated deferrable interest debentures redeemed | Hawaiian Electric (parent only) | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, redeemed | $ 31,500 | ||||||
Unsecured Notes | 2004 Junior subordinated deferrable interest debentures redeemed | HELCO | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, redeemed | 10,000 | ||||||
Unsecured Notes | 2004 Junior subordinated deferrable interest debentures redeemed | Maui Electric | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, redeemed | $ 10,000 | ||||||
Unsecured Notes | Refunding Series 2019 Special Purpose Revenue Bonds | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, issued | $ 150,000 | ||||||
Fixed coupon interest rate | 3.20% | ||||||
Unsecured Notes | Refunding Series 2019 Special Purpose Revenue Bonds | Hawaiian Electric (parent only) | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, issued | $ 90,000 | ||||||
Unsecured Notes | Refunding Series 2019 Special Purpose Revenue Bonds | HELCO | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, issued | $ 60,000 | ||||||
Unsecured Notes | Series 2009 Special Purpose Revenue Bonds Redeemed | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, redeemed | $ 150,000 | ||||||
Fixed coupon interest rate | 6.50% | ||||||
Unsecured Notes | Series 2009 Special Purpose Revenue Bonds Redeemed | Hawaiian Electric (parent only) | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, redeemed | $ 90,000 | ||||||
Unsecured Notes | Series 2009 Special Purpose Revenue Bonds Redeemed | HELCO | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, redeemed | $ 60,000 | ||||||
Unsecured Notes | Series 2019 Special Purpose Revenue Bonds | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, issued | $ 80,000 | ||||||
Fixed coupon interest rate | 3.50% | ||||||
Unsecured Notes | Series 2019 Special Purpose Revenue Bonds | Hawaiian Electric (parent only) | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, issued | $ 70,000 | ||||||
Unsecured Notes | Series 2019 Special Purpose Revenue Bonds | HELCO | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, issued | 2,500 | ||||||
Unsecured Notes | Series 2019 Special Purpose Revenue Bonds | Maui Electric | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount, issued | $ 7,500 |
Leases (Details)
Leases (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Aug. 31, 2019USD ($)ft² | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Renewal option (up to) | 10 years | 10 years | ||
Operating lease cost | $ 18,370 | $ 55,066 | ||
Variable lease cost | 61,489 | 152,954 | ||
Total lease cost | 79,859 | 208,020 | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 19,482 | $ 54,029 | ||
Weighted-average remaining lease term—operating leases (in years) | 3 years 8 months 12 days | 3 years 8 months 12 days | ||
Weighted-average discount rate—operating leases | 3.98% | 3.98% | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||||
2019 (remaining months) | $ 20,000 | $ 20,000 | ||
2020 | 74,000 | 74,000 | ||
2021 | 72,000 | 72,000 | ||
2022 | 48,000 | 48,000 | ||
2023 | 4,000 | 4,000 | ||
2024 | 3,000 | 3,000 | ||
Thereafter | 9,000 | 9,000 | ||
Total lease payments | 230,000 | 230,000 | ||
Less: Imputed interest | (17,000) | (17,000) | ||
Operating lease liabilities | 213,166 | 213,166 | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2019 | $ 74,000 | |||
2020 | 72,000 | |||
2021 | 71,000 | |||
2022 | 47,000 | |||
2023 | 4,000 | |||
Thereafter | 12,000 | |||
Total lease payments | 280,000 | |||
Other leases | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | 2,892 | 8,632 | ||
Variable lease cost | 3,577 | 9,777 | ||
Total lease cost | 6,469 | 18,409 | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 2,687 | $ 7,867 | ||
Weighted-average remaining lease term—operating leases (in years) | 6 years 6 months | 6 years 6 months | ||
Weighted-average discount rate—operating leases | 3.55% | 3.55% | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||||
2019 (remaining months) | $ 3,000 | $ 3,000 | ||
2020 | 11,000 | 11,000 | ||
2021 | 9,000 | 9,000 | ||
2022 | 6,000 | 6,000 | ||
2023 | 4,000 | 4,000 | ||
2024 | 3,000 | 3,000 | ||
Thereafter | 9,000 | 9,000 | ||
Total lease payments | 45,000 | 45,000 | ||
Less: Imputed interest | (6,000) | (6,000) | ||
Operating lease liabilities | 39,000 | 39,000 | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2019 | 11,000 | |||
2020 | 9,000 | |||
2021 | 8,000 | |||
2022 | 5,000 | |||
2023 | 4,000 | |||
Thereafter | 12,000 | |||
Total lease payments | 49,000 | |||
PPAs classified as leases | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | 15,478 | 46,434 | ||
Variable lease cost | 57,912 | 143,177 | ||
Total lease cost | 73,390 | 189,611 | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 16,795 | $ 46,162 | ||
Weighted-average remaining lease term—operating leases (in years) | 3 years | 3 years | ||
Weighted-average discount rate—operating leases | 4.08% | 4.08% | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||||
2019 (remaining months) | $ 17,000 | $ 17,000 | ||
2020 | 63,000 | 63,000 | ||
2021 | 63,000 | 63,000 | ||
2022 | 42,000 | 42,000 | ||
2023 | 0 | 0 | ||
2024 | 0 | 0 | ||
Thereafter | 0 | 0 | ||
Total lease payments | 185,000 | 185,000 | ||
Less: Imputed interest | (11,000) | (11,000) | ||
Operating lease liabilities | $ 174,000 | $ 174,000 | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2019 | 63,000 | |||
2020 | 63,000 | |||
2021 | 63,000 | |||
2022 | 42,000 | |||
2023 | 0 | |||
Thereafter | 0 | |||
Total lease payments | 231,000 | |||
Honolulu | ||||
Lessee, Lease, Description [Line Items] | ||||
Area of real estate property (in square feet) | ft² | 195 | |||
Operating lease term | 12 years | |||
Operating lease renewal term (up to) | 10 years | |||
Annual rent expense, phase 1 | $ 1,900 | |||
Annual rent expense, phase 2 | $ 1,700 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal option (up to) | 10 years | 10 years | ||
Operating lease cost | $ 17,020 | $ 50,985 | ||
Variable lease cost | 60,748 | 150,863 | ||
Total lease cost | 77,768 | 201,848 | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 18,250 | $ 50,425 | ||
Weighted-average remaining lease term—operating leases (in years) | 3 years 2 months 12 days | 3 years 2 months 12 days | ||
Weighted-average discount rate—operating leases | 4.09% | 4.09% | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||||
2019 (remaining months) | $ 19,000 | $ 19,000 | ||
2020 | 69,000 | 69,000 | ||
2021 | 68,000 | 68,000 | ||
2022 | 44,000 | 44,000 | ||
2023 | 2,000 | 2,000 | ||
2024 | 1,000 | 1,000 | ||
Thereafter | 2,000 | 2,000 | ||
Total lease payments | 205,000 | 205,000 | ||
Less: Imputed interest | (13,000) | (13,000) | ||
Operating lease liabilities | 192,000 | 192,000 | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2019 | 69,000 | |||
2020 | 69,000 | |||
2021 | 68,000 | |||
2022 | 44,000 | |||
2023 | 2,000 | |||
Thereafter | 3,000 | |||
Total lease payments | 255,000 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | Other leases | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | 1,542 | 4,551 | ||
Variable lease cost | 2,836 | 7,686 | ||
Total lease cost | 4,378 | 12,237 | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 1,455 | $ 4,263 | ||
Weighted-average remaining lease term—operating leases (in years) | 4 years 8 months 12 days | 4 years 8 months 12 days | ||
Weighted-average discount rate—operating leases | 4.17% | 4.17% | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||||
2019 (remaining months) | $ 2,000 | $ 2,000 | ||
2020 | 6,000 | 6,000 | ||
2021 | 5,000 | 5,000 | ||
2022 | 2,000 | 2,000 | ||
2023 | 2,000 | 2,000 | ||
2024 | 1,000 | 1,000 | ||
Thereafter | 2,000 | 2,000 | ||
Total lease payments | 20,000 | 20,000 | ||
Less: Imputed interest | (2,000) | (2,000) | ||
Operating lease liabilities | 18,000 | 18,000 | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2019 | 6,000 | |||
2020 | 6,000 | |||
2021 | 5,000 | |||
2022 | 2,000 | |||
2023 | 2,000 | |||
Thereafter | 3,000 | |||
Total lease payments | 24,000 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | PPAs classified as leases | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | 15,478 | 46,434 | ||
Variable lease cost | 57,912 | 143,177 | ||
Total lease cost | 73,390 | 189,611 | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ 16,795 | $ 46,162 | ||
Weighted-average remaining lease term—operating leases (in years) | 3 years | 3 years | ||
Weighted-average discount rate—operating leases | 4.08% | 4.08% | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||||
2019 (remaining months) | $ 17,000 | $ 17,000 | ||
2020 | 63,000 | 63,000 | ||
2021 | 63,000 | 63,000 | ||
2022 | 42,000 | 42,000 | ||
2023 | 0 | 0 | ||
2024 | 0 | 0 | ||
Thereafter | 0 | 0 | ||
Total lease payments | 185,000 | 185,000 | ||
Less: Imputed interest | (11,000) | (11,000) | ||
Operating lease liabilities | $ 174,000 | $ 174,000 | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2019 | 63,000 | |||
2020 | 63,000 | |||
2021 | 63,000 | |||
2022 | 42,000 | |||
2023 | 0 | |||
Thereafter | 0 | |||
Total lease payments | $ 231,000 |
Shareholders' equity - Accumula
Shareholders' equity - Accumulated other comprehensive income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||||
Beginning Balance | $ 2,208,586 | $ 2,183,515 | $ 2,162,280 | $ 2,103,018 | $ 2,091,777 | $ 2,097,386 | $ 2,162,280 | $ 2,097,386 |
Current period other comprehensive income (loss) | 3,297 | 13,699 | 9,241 | (4,589) | (3,825) | (12,773) | 26,237 | (21,187) |
Ending Balance | 2,242,689 | 2,208,586 | 2,183,515 | 2,132,045 | 2,103,018 | 2,091,777 | 2,242,689 | 2,132,045 |
AOCI | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||||
Beginning Balance | (27,670) | (41,369) | (50,610) | (58,539) | (54,714) | (41,941) | (50,610) | (41,941) |
Current period other comprehensive income (loss) | 3,297 | 13,699 | 9,241 | (4,589) | (3,825) | (12,773) | 26,237 | (21,187) |
Ending Balance | (24,373) | (27,670) | (41,369) | (63,128) | (58,539) | (54,714) | (24,373) | (63,128) |
Net unrealized gains (losses) on securities | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||||
Beginning Balance | (24,423) | (14,951) | (24,423) | (14,951) | ||||
Current period other comprehensive income (loss) | 27,368 | (22,768) | ||||||
Ending Balance | 2,945 | (37,719) | 2,945 | (37,719) | ||||
Unrealized gains (losses) on derivatives | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||||
Beginning Balance | (436) | 0 | (436) | 0 | ||||
Current period other comprehensive income (loss) | (1,663) | 0 | ||||||
Ending Balance | (2,099) | 0 | (2,099) | 0 | ||||
Retirement benefit plans | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||||
Beginning Balance | (25,751) | (26,990) | (25,751) | (26,990) | ||||
Current period other comprehensive income (loss) | 532 | 1,581 | ||||||
Ending Balance | (25,219) | (25,409) | (25,219) | (25,409) | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||||
Beginning Balance | 1,971,762 | 1,964,478 | 1,957,641 | 1,852,324 | 1,846,955 | 1,845,283 | 1,957,641 | 1,845,283 |
Current period other comprehensive income (loss) | 26 | 23 | 24 | 28 | 26 | 31 | 73 | 85 |
Ending Balance | 1,993,254 | 1,971,762 | 1,964,478 | 1,876,237 | 1,852,324 | 1,846,955 | 1,993,254 | 1,876,237 |
Hawaiian Electric Company, Inc. and Subsidiaries | AOCI | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||||
Beginning Balance | 146 | 123 | 99 | (1,162) | (1,188) | (1,219) | 99 | (1,219) |
Current period other comprehensive income (loss) | 26 | 23 | 24 | 28 | 26 | 31 | ||
Ending Balance | 172 | $ 146 | 123 | (1,134) | $ (1,162) | (1,188) | 172 | (1,134) |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||||||
Beginning Balance | $ 99 | $ (1,219) | 99 | (1,219) | ||||
Current period other comprehensive income (loss) | 73 | 85 | ||||||
Ending Balance | $ 172 | $ (1,134) | $ 172 | $ (1,134) |
Shareholders' equity - Reclassi
Shareholders' equity - Reclassification out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Revenues | $ 771,535 | $ 768,048 | $ 2,148,635 | $ 2,099,199 |
Total reclassifications | (356) | 534 | 54 | 1,581 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 26 | 28 | 73 | 85 |
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 2,615 | 5,259 | 7,621 | 15,755 |
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | 2,519 | 4,753 | 7,162 | 14,259 |
Impact of D&Os of the PUC included in regulatory assets | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | (2,493) | (4,725) | (7,089) | (14,174) |
Impact of D&Os of the PUC included in regulatory assets | Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Total reclassifications | (2,493) | (4,725) | (7,089) | (14,174) |
Bank | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Revenues | 83,201 | 80,496 | 247,940 | 233,019 |
Bank | Reclassification out of Accumulated Other Comprehensive Income [Member] | Net realized gains on securities included in net income | ||||
Reclassifications out of accumulated other comprehensive income/(loss) | ||||
Revenues | $ 478 | $ 0 | $ 478 | $ 0 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 725,111 | $ 710,168 | $ 1,962,922 | $ 1,907,220 |
Total revenues | 771,535 | 768,048 | 2,148,635 | 2,099,199 |
Services/goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,111 | 12,575 | 34,976 | 37,177 |
Services/goods transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 713,000 | 697,593 | 1,927,946 | 1,870,043 |
Electric energy sales - residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 230,051 | 222,196 | 601,664 | 586,002 |
Electric energy sales - commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 230,411 | 229,476 | 635,097 | 624,643 |
Electric energy sales - large light and power | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 248,457 | 242,457 | 679,252 | 649,454 |
Electric energy sales - other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,081 | 4,296 | 11,933 | 12,324 |
Bank fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,111 | 11,743 | 34,976 | 34,797 |
Revenues from Other Sources | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 46,424 | 57,880 | 185,713 | 191,979 |
Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (30,800) | (13,572) | (44,953) | (13,465) |
Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 66,859 | 65,185 | 201,502 | 190,448 |
Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4,231 | 3,568 | 11,462 | 7,774 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 6,134 | 2,699 | 17,702 | 7,222 |
Electric utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 713,000 | 698,425 | 1,927,946 | 1,872,423 |
Total revenues | 688,330 | 687,409 | 1,900,609 | 1,865,962 |
Electric utility | Services/goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 832 | 0 | 2,380 |
Electric utility | Services/goods transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 713,000 | 697,593 | 1,927,946 | 1,870,043 |
Electric utility | Electric energy sales - residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 230,051 | 222,196 | 601,664 | 586,002 |
Electric utility | Electric energy sales - commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 230,411 | 229,476 | 635,097 | 624,643 |
Electric utility | Electric energy sales - large light and power | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 248,457 | 242,457 | 679,252 | 649,454 |
Electric utility | Electric energy sales - other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,081 | 4,296 | 11,933 | 12,324 |
Electric utility | Bank fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Electric utility | Revenues from Other Sources | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (24,670) | (11,016) | (27,337) | (6,461) |
Electric utility | Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (30,800) | (13,572) | (44,953) | (13,465) |
Electric utility | Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Electric utility | Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Electric utility | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 6,130 | 2,556 | 17,616 | 7,004 |
Bank | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,111 | 11,743 | 34,976 | 34,797 |
Total revenues | 83,201 | 80,496 | 247,940 | 233,019 |
Bank | Services/goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,111 | 11,743 | 34,976 | 34,797 |
Bank | Services/goods transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Electric energy sales - residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Electric energy sales - commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Electric energy sales - large light and power | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Electric energy sales - other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Bank | Bank fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,111 | 11,743 | 34,976 | 34,797 |
Bank | Revenues from Other Sources | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 71,090 | 68,753 | 212,964 | 198,222 |
Bank | Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Bank | Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 66,859 | 65,185 | 201,502 | 190,448 |
Bank | Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4,231 | 3,568 | 11,462 | 7,774 |
Bank | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Total revenues | 4 | 143 | 86 | 218 |
Other | Services/goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Services/goods transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Electric energy sales - residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Electric energy sales - commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Electric energy sales - large light and power | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Electric energy sales - other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Bank fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | Revenues from Other Sources | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4 | 143 | 86 | 218 |
Other | Regulatory revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Other | Bank interest and dividend income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Other | Other bank noninterest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 4 | $ 143 | $ 86 | $ 218 |
Retirement benefits (Details)
Retirement benefits (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Defined benefit plans | |||||
Expected payments for remainder of fiscal year | $ 3,000,000 | $ 3,000,000 | $ 2,000,000 | ||
Retirement benefits expense | $ 44,000,000 | $ 43,000,000 | |||
Number of years for which regulatory asset/liability for each utility will be amortized, beginning with respective utility's next rate case (in years) | 5 years | ||||
Defined contribution plan, expenses recognized | $ 5,100,000 | 4,800,000 | |||
Cash contributions by the employer to defined contribution plan | 6,000,000 | 5,900,000 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Defined benefit plans | |||||
Expected payments for remainder of fiscal year | 2,000,000 | 2,000,000 | 1,000,000 | ||
Retirement benefits expense | 43,000,000 | 40,000,000 | |||
Defined contribution plan, expenses recognized | 1,900,000 | 1,700,000 | |||
Cash contributions by the employer to defined contribution plan | 1,900,000 | 1,700,000 | |||
Pension benefits | |||||
Defined benefit plans | |||||
Contributions made to defined benefit plans | 36,000,000 | 38,000,000 | |||
Contributions expected to be paid in current year | 49,000,000 | 49,000,000 | 39,000,000 | ||
Service cost | 15,800,000 | $ 17,223,000 | 46,564,000 | 51,764,000 | |
Interest cost | 21,150,000 | 19,340,000 | 63,216,000 | 58,033,000 | |
Expected return on plan assets | (27,991,000) | (27,237,000) | (83,988,000) | (81,715,000) | |
Amortization of net prior service gain | (10,000) | (11,000) | (32,000) | (32,000) | |
Amortization of net actuarial (gains) losses | 3,989,000 | 7,527,000 | 11,667,000 | 22,556,000 | |
Net periodic pension/benefit cost (return) | 12,938,000 | 16,842,000 | 37,427,000 | 50,606,000 | |
Impact of PUC D&Os | 11,554,000 | 7,785,000 | 36,111,000 | 17,621,000 | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 24,492,000 | 24,627,000 | 73,538,000 | 68,227,000 | |
Pension benefits | American Savings Bank (ASB) | |||||
Defined benefit plans | |||||
Contributions expected to be paid in current year | 0 | 0 | 0 | ||
Pension benefits | Hawaiian Electric Industries, Inc. | |||||
Defined benefit plans | |||||
Contributions expected to be paid in current year | 1,000,000 | 1,000,000 | 1,000,000 | ||
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Defined benefit plans | |||||
Contributions made to defined benefit plans | 36,000,000 | 37,000,000 | |||
Contributions expected to be paid in current year | 48,000,000 | 48,000,000 | $ 38,000,000 | ||
Service cost | 15,344,000 | 16,840,000 | 45,346,000 | 50,520,000 | |
Interest cost | 19,560,000 | 17,824,000 | 58,388,000 | 53,471,000 | |
Expected return on plan assets | (26,146,000) | (25,593,000) | (78,474,000) | (76,777,000) | |
Amortization of net prior service gain | 2,000 | 2,000 | 6,000 | 6,000 | |
Amortization of net actuarial (gains) losses | 3,841,000 | 6,826,000 | 10,993,000 | 20,477,000 | |
Net periodic pension/benefit cost (return) | 12,601,000 | 15,899,000 | 36,259,000 | 47,697,000 | |
Impact of PUC D&Os | 11,554,000 | 7,785,000 | 36,111,000 | 17,621,000 | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 24,155,000 | 23,684,000 | 72,370,000 | 65,318,000 | |
Other benefits | |||||
Defined benefit plans | |||||
Service cost | 573,000 | 680,000 | 1,656,000 | 2,041,000 | |
Interest cost | 2,006,000 | 1,986,000 | 6,000,000 | 5,947,000 | |
Expected return on plan assets | (3,101,000) | (3,224,000) | (9,273,000) | (9,683,000) | |
Amortization of net prior service gain | (451,000) | (451,000) | (1,355,000) | (1,354,000) | |
Amortization of net actuarial (gains) losses | (3,000) | 25,000 | (10,000) | 71,000 | |
Net periodic pension/benefit cost (return) | (976,000) | (984,000) | (2,982,000) | (2,978,000) | |
Impact of PUC D&Os | 821,000 | 953,000 | 2,443,000 | 3,048,000 | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | (155,000) | (31,000) | (539,000) | 70,000 | |
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Defined benefit plans | |||||
Service cost | 568,000 | 676,000 | 1,643,000 | 2,028,000 | |
Interest cost | 1,920,000 | 1,907,000 | 5,755,000 | 5,721,000 | |
Expected return on plan assets | (3,064,000) | (3,178,000) | (9,135,000) | (9,534,000) | |
Amortization of net prior service gain | (451,000) | (451,000) | (1,353,000) | (1,353,000) | |
Amortization of net actuarial (gains) losses | 0 | 25,000 | 0 | 74,000 | |
Net periodic pension/benefit cost (return) | (1,027,000) | (1,021,000) | (3,090,000) | (3,064,000) | |
Impact of PUC D&Os | 821,000 | 953,000 | 2,443,000 | 3,048,000 | |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | $ (206,000) | $ (68,000) | $ (647,000) | $ (16,000) |
Share-based compensation - Narr
Share-based compensation - Narrative (Details) - USD ($) $ in Millions | Jun. 26, 2019 | Mar. 01, 2014 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Share-based compensation | ||||||
Income tax benefit from compensation expense | $ 0.3 | $ 0.2 | $ 1.2 | $ 0.9 | ||
Restricted stock units | ||||||
Share-based compensation | ||||||
Fair value of vested stock | 3.2 | 2.7 | ||||
Income tax benefit from compensation expense | 0.5 | $ 0.4 | ||||
Unrecognized share based compensation | 5.4 | $ 5.4 | ||||
Weighted average period for recognition of unrecognized compensation cost (in years) | 2 years 8 months 12 days | |||||
Long-term Incentive Plan | ||||||
Share-based compensation | ||||||
Payment award, low end of range | 0.00% | |||||
Payment award, high end of range | 200.00% | |||||
Award performance period (in years) | 3 years | |||||
LTIP linked to TRS | ||||||
Share-based compensation | ||||||
Unrecognized share based compensation | 1.7 | $ 1.7 | ||||
Weighted average period for recognition of unrecognized compensation cost (in years) | 1 year 3 months 18 days | |||||
Measurement period for total return to shareholders (in years) | 3 years | |||||
LTIP awards linked to other performance conditions | ||||||
Share-based compensation | ||||||
Unrecognized share based compensation | $ 6.1 | $ 6.1 | ||||
Weighted average period for recognition of unrecognized compensation cost (in years) | 1 year 2 months 12 days | |||||
Equity and Incentive Plan | ||||||
Share-based compensation | ||||||
Number of additional shares authorized (in shares) | 1,500,000 | |||||
Shares available for future issuance (in shares) | 3,200,000 | 3,200,000 | ||||
Number of share issuable upon vesting and achievement of performance goals (in shares) | 800,000 | 800,000 | ||||
Nonemployee Director Stock Plan | ||||||
Share-based compensation | ||||||
Number of additional shares authorized (in shares) | 300,000 | |||||
Shares available for future grant (in shares) | 311,027 | 311,027 |
Share-based compensation - Summ
Share-based compensation - Summary of income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based compensation | ||||
Share-based compensation expense | $ 2.3 | $ 1.5 | $ 8.1 | $ 5.9 |
Income tax benefit | 0.3 | 0.2 | 1.2 | 0.9 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Share-based compensation | ||||
Share-based compensation expense | 0.8 | 0.6 | 2.6 | 2.1 |
Income tax benefit | $ 0.1 | $ 0.1 | $ 0.5 | $ 0.4 |
Share-based compensation - 2011
Share-based compensation - 2011 Director Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based compensation | ||||
Income tax benefit | $ 0.3 | $ 0.2 | $ 1.2 | $ 0.9 |
Common stock | ||||
Share-based compensation | ||||
Shares granted (in shares) | 0 | 0 | 35,580 | 38,821 |
Fair value | $ 0 | $ 0 | $ 1.5 | $ 1.3 |
Income tax benefit | $ 0 | $ 0 | $ 0.4 | $ 0.3 |
Share-based compensation - Su_2
Share-based compensation - Summary of changes in share based compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restricted stock units | ||||
Restricted stock awards and restricted stock units | ||||
Outstanding, beginning of period (in shares) | 208,625 | 200,856 | 200,358 | 197,047 |
Granted (in shares) | 1,006 | 1,789 | 95,565 | 93,853 |
Vested (in shares) | (101) | 0 | (76,813) | (75,683) |
Forfeited (in shares) | (2,889) | (2,287) | (12,469) | (14,859) |
Outstanding, end of period (in shares) | 206,641 | 200,358 | 206,641 | 200,358 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 35.28 | $ 33.03 | $ 33.05 | $ 31.53 |
Granted (in dollars per share) | 44.16 | 35.61 | 37.75 | 34.12 |
Vested (in dollars per share) | 36.27 | 0 | 32.61 | 30.56 |
Forfeited (in dollars per share) | 35.44 | 32.83 | 34.20 | 32.35 |
Outstanding, end of period (in dollars per share) | $ 35.32 | $ 33.05 | $ 35.32 | $ 33.05 |
Total weighted-average grant-date fair value | $ 0 | $ 0.1 | $ 3.6 | $ 3.2 |
LTIP linked to TRS | ||||
Restricted stock awards and restricted stock units | ||||
Outstanding, beginning of period (in shares) | 98,311 | 66,177 | 65,578 | 32,904 |
Granted (in shares) | 568 | 878 | 35,215 | 37,819 |
Vested (in shares) | 0 | 0 | 0 | 0 |
Forfeited (in shares) | (2,477) | (1,490) | (4,391) | (5,158) |
Outstanding, end of period (in shares) | 96,402 | 65,565 | 96,402 | 65,565 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 39.61 | $ 38.82 | $ 38.81 | $ 39.51 |
Granted (in dollars per share) | 41.07 | 38.20 | 41.07 | 38.21 |
Vested (in dollars per share) | 0 | 0 | 0 | 0 |
Forfeited (in dollars per share) | 39.64 | 38.85 | 39.19 | 38.84 |
Outstanding, end of period (in dollars per share) | $ 39.62 | $ 38.81 | $ 39.62 | $ 38.81 |
Total weighted-average grant-date fair value | $ 0 | $ 0 | $ 1.4 | $ 1.4 |
LTIP awards linked to other performance conditions | ||||
Restricted stock awards and restricted stock units | ||||
Outstanding, beginning of period (in shares) | 407,090 | 264,707 | 276,169 | 131,616 |
Granted (in shares) | 2,275 | 3,511 | 140,855 | 151,277 |
Vested (in shares) | 0 | 0 | 0 | 0 |
Increase above target (in shares) | 11,131 | 0 | 11,131 | 0 |
Forfeited (in shares) | (9,911) | (5,958) | (17,570) | (20,633) |
Outstanding, end of period (in shares) | 410,585 | 262,260 | 410,585 | 262,260 |
Weighted-average grant-date fair value per share | ||||
Outstanding, beginning of period (in dollars per share) | $ 35.12 | $ 33.79 | $ 33.80 | $ 33.47 |
Granted (in dollars per share) | 44.05 | 35.58 | 37.78 | 34.12 |
Vested (in dollars per share) | 0 | 0 | 0 | 0 |
Increase above target (in dollars per share) | 33.49 | 0 | 33.49 | 0 |
Forfeited (in dollars per share) | 35.24 | 33.80 | 34.66 | 33.80 |
Outstanding, end of period (in dollars per share) | $ 35.12 | $ 33.82 | $ 35.12 | $ 33.82 |
Total weighted-average grant-date fair value | $ 0.1 | $ 0.1 | $ 5.3 | $ 5.2 |
Share-based compensation - Fair
Share-based compensation - Fair value assumptions (Details) - LTIP linked to TRS - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Risk-free interest rate | 2.48% | 2.29% |
Expected life (in years) | 3 years | 3 years |
Expected volatility | 15.80% | 17.00% |
Range of expected volatility for Peer Group, minimum rate | 15.00% | 15.10% |
Range of expected volatility for Peer Group, maximum rate | 73.20% | 26.20% |
Grant date fair value (in dollars per share) | $ 41.07 | $ 38.20 |
Income taxes (Details)
Income taxes (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Effective income tax, percent | 19.00% | 19.00% | |
Federal income tax rate | 21.00% | 35.00% | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Income Tax Contingency [Line Items] | |||
Effective income tax, percent | 20.00% | 19.00% |
Cash flows (Details)
Cash flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Supplemental disclosures of cash flow information | ||
Interest paid to non-affiliates, net of amounts capitalized | $ 75 | $ 67 |
Income taxes paid (including refundable credits) | 55 | 50 |
Income taxes refunded (including refundable credits) | 4 | 0 |
Supplemental disclosures of noncash activities | ||
Estimated fair value of noncash contributions in aid of construction (investing) | 7 | 6 |
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 37 | 42 |
Common stock issued (gross) for director and executive/management compensation (financing) | 5 | 4 |
Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) | 9 | 0 |
Obligations to fund low income housing investments (investing) | 6 | 12 |
Transfer of retail repurchase agreements to deposit liabilities (financing) | 0 | 102 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Supplemental disclosures of cash flow information | ||
Interest paid to non-affiliates, net of amounts capitalized | 45 | 44 |
Income taxes paid (including refundable credits) | 55 | 47 |
Income taxes refunded (including refundable credits) | 4 | 0 |
Supplemental disclosures of noncash activities | ||
Estimated fair value of noncash contributions in aid of construction (investing) | 7 | 6 |
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | $ 34 | $ 28 |
Fair value measurements - Summa
Fair value measurements - Summary of financial assets and liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial assets | ||
Available-for-sale investment securities | $ 1,210,748 | $ 1,388,533 |
Held-to-maturity investment securities | 137,497 | 142,057 |
Financial liabilities | ||
Short-term borrowings—other than bank | 163,836 | 73,992 |
Other bank borrowings | 129,190 | 110,040 |
Carrying or notional amount | ||
Financial assets | ||
Available-for-sale investment securities | 1,210,748 | 1,388,533 |
Held-to-maturity investment securities | 132,704 | 141,875 |
Stock in Federal Home Loan Bank | 9,953 | 9,958 |
Loans, net | 5,048,411 | 4,792,707 |
Mortgage-servicing rights | 8,567 | 8,062 |
Derivative assets | 58,473 | 10,180 |
Financial liabilities | ||
Deposit liabilities | 783,308 | 827,841 |
Short-term borrowings—other than bank | 163,836 | 73,992 |
Other bank borrowings | 129,190 | 110,040 |
Long-term debt, net | 1,885,454 | 1,879,641 |
Derivative liabilities | 63,391 | 34,132 |
Carrying or notional amount | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 1,418,220 | 1,418,802 |
Short-term borrowings | 112,353 | 25,000 |
Estimated fair value | ||
Financial assets | ||
Available-for-sale investment securities | 1,210,748 | 1,388,533 |
Held-to-maturity investment securities | 137,497 | 142,057 |
Stock in Federal Home Loan Bank | 9,953 | 9,958 |
Loans, net | 5,138,439 | 4,802,053 |
Mortgage-servicing rights | 11,485 | 13,618 |
Derivative assets | 486 | 91 |
Financial liabilities | ||
Deposit liabilities | 779,370 | 817,667 |
Short-term borrowings—other than bank | 163,836 | 73,992 |
Other bank borrowings | 129,187 | 110,037 |
Long-term debt, net | 2,085,217 | 1,904,261 |
Derivative liabilities | 2,919 | 630 |
Estimated fair value | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 1,594,271 | 1,443,968 |
Short-term borrowings | 112,353 | 25,000 |
Estimated fair value | Level 1 | ||
Financial assets | ||
Available-for-sale investment securities | 0 | 0 |
Held-to-maturity investment securities | 0 | 0 |
Stock in Federal Home Loan Bank | 0 | 0 |
Loans, net | 0 | 0 |
Mortgage-servicing rights | 0 | 0 |
Derivative assets | 2 | 0 |
Financial liabilities | ||
Deposit liabilities | 0 | 0 |
Short-term borrowings—other than bank | 0 | 0 |
Other bank borrowings | 0 | 0 |
Long-term debt, net | 0 | 0 |
Derivative liabilities | 18 | 34 |
Estimated fair value | Level 1 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 0 | 0 |
Short-term borrowings | 0 | 0 |
Estimated fair value | Level 2 | ||
Financial assets | ||
Available-for-sale investment securities | 1,182,289 | 1,364,897 |
Held-to-maturity investment securities | 137,497 | 142,057 |
Stock in Federal Home Loan Bank | 9,953 | 9,958 |
Loans, net | 17,164 | 1,809 |
Mortgage-servicing rights | 0 | 0 |
Derivative assets | 484 | 91 |
Financial liabilities | ||
Deposit liabilities | 779,370 | 817,667 |
Short-term borrowings—other than bank | 163,836 | 73,992 |
Other bank borrowings | 129,187 | 110,037 |
Long-term debt, net | 2,085,217 | 1,904,261 |
Derivative liabilities | 2,901 | 596 |
Estimated fair value | Level 2 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 1,594,271 | 1,443,968 |
Short-term borrowings | 112,353 | 25,000 |
Estimated fair value | Level 3 | ||
Financial assets | ||
Available-for-sale investment securities | 28,459 | 23,636 |
Held-to-maturity investment securities | 0 | 0 |
Stock in Federal Home Loan Bank | 0 | 0 |
Loans, net | 5,121,275 | 4,800,244 |
Mortgage-servicing rights | 11,485 | 13,618 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Deposit liabilities | 0 | 0 |
Short-term borrowings—other than bank | 0 | 0 |
Other bank borrowings | 0 | 0 |
Long-term debt, net | 0 | 0 |
Derivative liabilities | 0 | 0 |
Estimated fair value | Level 3 | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Financial liabilities | ||
Long-term debt, net | 0 | 0 |
Short-term borrowings | $ 0 | $ 0 |
Fair value measurements - Asset
Fair value measurements - Assets and liabilities measured on a recurring basis (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative assets | ||
Available-for-sale investment securities | $ 1,210,748 | $ 1,388,533 |
Corporate bonds | ||
Derivative assets | ||
Available-for-sale investment securities | 36,276 | 49,132 |
Mortgage revenue bonds | ||
Derivative assets | ||
Available-for-sale investment securities | 28,459 | 23,636 |
Fair value measurements on a recurring basis | Level 1 | ||
Derivative liabilities | ||
Derivative liabilities | 18 | 34 |
Fair value measurements on a recurring basis | Level 1 | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Derivative assets | 2 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | Interest rate lock commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | Forward commitments | ||
Derivative assets | ||
Derivative assets | 2 | 0 |
Derivative liabilities | ||
Derivative liabilities | 18 | 34 |
Fair value measurements on a recurring basis | Level 1 | Other | Interest rate swap | ||
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | U.S. Treasury and federal agency obligations | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Corporate bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Mortgage revenue bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 2 | ||
Derivative liabilities | ||
Derivative liabilities | 2,901 | 596 |
Fair value measurements on a recurring basis | Level 2 | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 1,182,289 | 1,364,897 |
Derivative assets | 484 | 91 |
Fair value measurements on a recurring basis | Level 2 | Bank | Interest rate lock commitments | ||
Derivative assets | ||
Derivative assets | 477 | 91 |
Derivative liabilities | ||
Derivative liabilities | 7 | 0 |
Fair value measurements on a recurring basis | Level 2 | Bank | Forward commitments | ||
Derivative assets | ||
Derivative assets | 7 | 0 |
Derivative liabilities | ||
Derivative liabilities | 67 | 9 |
Fair value measurements on a recurring basis | Level 2 | Other | Interest rate swap | ||
Derivative liabilities | ||
Derivative liabilities | 2,827 | 587 |
Fair value measurements on a recurring basis | Level 2 | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 1,019,305 | 1,161,416 |
Fair value measurements on a recurring basis | Level 2 | U.S. Treasury and federal agency obligations | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 126,708 | 154,349 |
Fair value measurements on a recurring basis | Level 2 | Corporate bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 36,276 | 49,132 |
Fair value measurements on a recurring basis | Level 2 | Mortgage revenue bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | ||
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 28,459 | 23,636 |
Derivative assets | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | Interest rate lock commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | Forward commitments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Other | Interest rate swap | ||
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | U.S. Treasury and federal agency obligations | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Corporate bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Mortgage revenue bonds | Bank | ||
Derivative assets | ||
Available-for-sale investment securities | $ 28,459 | $ 23,636 |
Fair value measurements - Addit
Fair value measurements - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)instrument | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)instrument | Sep. 30, 2018USD ($) | |
Measurement Input, Credit Spread | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Weighted average discount rate | 0.0366 | 0.0366 | ||
Mortgage revenue bonds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 28,166 | $ 15,427 | $ 23,636 | $ 15,427 |
Principal payments received | 0 | 0 | 0 | 0 |
Purchases | 293 | 3,657 | 4,823 | 3,657 |
Unrealized gain (loss) included in other comprehensive income | 0 | 0 | 0 | 0 |
Ending balance | $ 28,459 | $ 19,084 | $ 28,459 | $ 19,084 |
Mortgage revenue bonds | Bank | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Number of financial instruments held | instrument | 2 | 2 |
Fair value measurements - Ass_2
Fair value measurements - Assets Measured on a Nonrecurring Basis (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Estimated fair value | |||
Fair value measurements on a recurring basis | |||
Loans, net | $ 5,138,439,000 | $ 4,802,053,000 | |
Estimated fair value | Level 1 | |||
Fair value measurements on a recurring basis | |||
Loans, net | 0 | 0 | |
Estimated fair value | Level 2 | |||
Fair value measurements on a recurring basis | |||
Loans, net | 17,164,000 | 1,809,000 | |
Estimated fair value | Level 3 | |||
Fair value measurements on a recurring basis | |||
Loans, net | 5,121,275,000 | 4,800,244,000 | |
Fair value measurements on a nonrecurring basis | American Savings Bank (ASB) | |||
Fair value measurements on a recurring basis | |||
Adjustments to fair value of loans held for sale | 0 | $ 0 | |
Fair value measurements on a nonrecurring basis | Level 1 | |||
Fair value measurements on a recurring basis | |||
Loans, net | 0 | 0 | |
Real estate acquired in settlement of loans | 0 | ||
Fair value measurements on a nonrecurring basis | Level 2 | |||
Fair value measurements on a recurring basis | |||
Loans, net | 0 | 0 | |
Real estate acquired in settlement of loans | 0 | ||
Fair value measurements on a nonrecurring basis | Level 3 | |||
Fair value measurements on a recurring basis | |||
Loans, net | 3,911,000 | 77,000 | |
Real estate acquired in settlement of loans | 186,000 | ||
Fair value measurements on a nonrecurring basis | Estimated fair value | |||
Fair value measurements on a recurring basis | |||
Loans, net | $ 3,911,000 | 77,000 | |
Real estate acquired in settlement of loans | $ 186,000 |
Fair value measurements - Sum_2
Fair value measurements - Summary of Level 3 financial instruments (Details) - Level 3 $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair value measurements | ||
Fair value | $ 3,911 | $ 77 |
Home equity line of credit | ||
Fair value measurements | ||
Fair value | $ 199 | $ 77 |
Appraised value, selling cost | 7.00% | 7.00% |
Residential land | ||
Fair value measurements | ||
Fair value | $ 25 | |
Appraised value, selling cost | 7.00% | |
Commercial | ||
Fair value measurements | ||
Fair value | $ 3,687 | |
Real estate acquired in settlement of loans | ||
Fair value measurements | ||
Fair value | $ 186 | |
Appraised value, selling cost | 7.00% | |
Minimum | Discount rate | Commercial | ||
Fair value measurements | ||
Unobservable input value | 0.0390 | |
Maximum | Discount rate | Commercial | ||
Fair value measurements | ||
Unobservable input value | 0.0680 | |
Weighted Average | Discount rate | Commercial | ||
Fair value measurements | ||
Unobservable input value | 0.046 |