Exact Name of Registrant as
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Commission
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I.R.S. Employer
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Specified in Its Charter
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File Number
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Identification No.
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HAWAIIAN ELECTRIC INDUSTRIES, INC.
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1-8503
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99-0208097
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and Principal Subsidiary
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||||
HAWAIIAN ELECTRIC COMPANY, INC.
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1-4955
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99-0040500
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Hawaiian Electric Industries, Inc. Yes
x
No
o
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Hawaiian Electric Company, Inc. Yes
x
No
o
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Hawaiian Electric Industries, Inc. Yes
x
No
o
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Hawaiian Electric Company, Inc. Yes
x
No
o
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Hawaiian Electric Industries, Inc. Yes
o
No
x
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Hawaiian Electric Company, Inc. Yes
o
No
x
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Hawaiian Electric Industries, Inc.
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Large accelerated filer
x
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Hawaiian Electric Company, Inc.
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Large accelerated filer
o
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Accelerated filer
o
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Accelerated filer
o
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Non-accelerated filer
o
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Non-accelerated filer
x
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(Do not check if a smaller reporting company)
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(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Smaller reporting company
o
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Class of Common Stock
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Outstanding April 30, 2015
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Hawaiian Electric Industries, Inc. (Without Par Value)
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107,417,644 Shares
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Hawaiian Electric Company, Inc. ($6-2/3 Par Value)
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15,805,327 Shares (not publicly traded)
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Page No.
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Consolidated Statements of Income -
three months ended March 31, 2015 and 2014 |
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Consolidated Statements of Comprehensive Income -
three months ended March 31, 2015 and 2014 |
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Consolidated Balance Sheets - March 31, 2015 and December 31, 2014
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Consolidated Statements of Changes in Shareholders’ Equity -
three months ended March 31, 2015 and 2014 |
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Consolidated Statements of Cash Flows -
three months ended March 31, 2015 and 2014 |
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Consolidated Statements of Income -
three months ended March 31, 2015 and 2014 |
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Consolidated Statements of Comprehensive Income -
three months ended March 31, 2015 and 2014 |
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Consolidated Balance Sheets - March 31, 2015 and December 31, 2014
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Consolidated Statements of Changes in Common Stock Equity -
three months ended March 31, 2015 and 2014 |
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Consolidated Statements of Cash Flows -
three months ended March 31, 2015 and 2014 |
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Item 2
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Unregistered Sales of Equity Securities and Use of Proceeds
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Terms
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Definitions
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AFUDC
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Allowance for funds used during construction
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AOCI
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Accumulated other comprehensive income/(loss)
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ARO
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Asset retirement obligation
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ASB
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American Savings Bank, F.S.B., a wholly-owned subsidiary of ASB Hawaii, Inc.
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ASB Hawaii
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ASB Hawaii, Inc. (formerly American Savings Holdings, Inc.), a wholly owned subsidiary of Hawaiian Electric Industries, Inc. and the parent company of American Savings Bank, F.S.B.
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ASC
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Accounting Standards Codification
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ASU
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Accounting Standards Update
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CIP CT-1
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Campbell Industrial Park 110 MW combustion turbine No. 1
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CIS
|
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Customer Information System
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Company
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Hawaiian Electric Industries, Inc. and its direct and indirect subsidiaries, including, without limitation, Hawaiian Electric Company, Inc. and its subsidiaries (listed under Hawaiian Electric); ASB Hawaii, Inc. and its subsidiary, American Savings Bank, F.S.B.; HEI Properties, Inc.; Hawaiian Electric Industries Capital Trust II and Hawaiian Electric Industries Capital Trust III (inactive financing entities); and The Old Oahu Tug Service, Inc. (formerly Hawaiian Tug & Barge Corp.).
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Consumer Advocate
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Division of Consumer Advocacy, Department of Commerce and Consumer Affairs of the State of Hawaii
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DBEDT
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State of Hawaii Department of Business, Economic Development and Tourism
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D&O
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Decision and order
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DG
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Distributed generation
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Dodd-Frank Act
|
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Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
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DOH
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Department of Health of the State of Hawaii
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DRIP
|
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HEI Dividend Reinvestment and Stock Purchase Plan
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DSM
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Demand-side management
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ECAC
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Energy cost adjustment clause
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EGU
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Electrical generating unit
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EIP
|
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2010 Equity and Incentive Plan, as amended and restated
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Energy Agreement
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Agreement, dated October 20, 2008, signed by the Governor of the State of Hawaii, the State of Hawaii Department of Business, Economic Development and Tourism, the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, and Hawaiian Electric, for itself and on behalf of its electric utility subsidiaries, committing to actions to develop renewable energy and reduce dependence on fossil fuels in support of the HCEI. In September 2014, the parties to the Energy Agreement concluded that the agreements and policy directives in the Energy Agreement had been advanced or superseded by subsequent events, as well as by decisions and orders issued by the PUC, and accordingly ended the Energy Agreement as of September 14, 2014.
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EPA
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Environmental Protection Agency — federal
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EPS
|
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Earnings per share
|
ERISA
|
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Employee Retirement Income Security Act of 1974, as amended
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EVE
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Economic value of equity
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Exchange Act
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Securities Exchange Act of 1934
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FASB
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Financial Accounting Standards Board
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FDIC
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Federal Deposit Insurance Corporation
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federal
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U.S. Government
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FHLB
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Federal Home Loan Bank
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FHLMC
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Federal Home Loan Mortgage Corporation
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FNMA
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Federal National Mortgage Association
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FRB
|
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Federal Reserve Board
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GAAP
|
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Accounting principles generally accepted in the United States of America
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GHG
|
|
Greenhouse gas
|
Terms
|
|
Definitions
|
GNMA
|
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Government National Mortgage Association
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HCEI
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Hawaii Clean Energy Initiative
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Hawaii Electric Light
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Hawaii Electric Light Company, Inc., an electric utility subsidiary of Hawaiian Electric Company, Inc.
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Hawaiian Electric
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Hawaiian Electric Company, Inc., an electric utility subsidiary of Hawaiian Electric Industries, Inc. and parent company of Hawaii Electric Light Company, Inc., Maui Electric Company, Limited, HECO Capital Trust III (unconsolidated financing subsidiary), Renewable Hawaii, Inc. and Uluwehiokama Biofuels Corp.
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HEI
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Hawaiian Electric Industries, Inc., direct parent company of Hawaiian Electric Company, Inc., ASB Hawaii, Inc., HEI Properties, Inc., Hawaiian Electric Industries Capital Trust II, Hawaiian Electric Industries Capital Trust III and The Old Oahu Tug Service, Inc. (formerly Hawaiian Tug & Barge Corp.)
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HEIRSP
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Hawaiian Electric Industries Retirement Savings Plan
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HELOC
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Home equity line of credit
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Hpower
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City and County of Honolulu with respect to a power purchase agreement for a refuse-fired plant
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IPP
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Independent power producer
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IRP
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Integrated resource planning
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Kalaeloa
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Kalaeloa Partners, L.P.
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kW
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Kilowatt/s (as applicable)
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KWH
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Kilowatthour/s (as applicable)
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LTIP
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Long-term incentive plan
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LGD
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Loss given default
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Maui Electric
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Maui Electric Company, Limited, an electric utility subsidiary of Hawaiian Electric Company, Inc.
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Merger
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As provided in the Merger Agreement, merger of Merger Sub I with and into HEI, with HEI surviving, and then merger of HEI with and into Merger Sub II, with Merger Sub II surviving as a wholly owned subsidiary of NEE
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Merger Agreement
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Agreement and Plan of Merger by and among HEI, NEE, Merger Sub II and Merger Sub I, dated December 3, 2014
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Merger Sub I
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NEE Acquisition Sub II, Inc., a Delaware corporation and a wholly owned subsidiary of NEE
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Merger Sub II
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NEE Acquisition Sub I, LLC, a Delaware limited liability company and a wholly owned subsidiary of NEE
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MOU
|
|
Memorandum of understanding
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MW
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|
Megawatt/s (as applicable)
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NEE
|
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NextEra Energy, Inc.
|
NII
|
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Net interest income
|
O&M
|
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Other operation and maintenance
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OCC
|
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Office of the Comptroller of the Currency
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OPEB
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Postretirement benefits other than pensions
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PPA
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Power purchase agreement
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PPAC
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Purchased power adjustment clause
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PUC
|
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Public Utilities Commission of the State of Hawaii
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PV
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Photovaltaic
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RAM
|
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Rate adjustment mechanism
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RBA
|
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Revenue balancing account
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RFP
|
|
Request for proposals
|
ROACE
|
|
Return on average common equity
|
RORB
|
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Return on rate base
|
RPS
|
|
Renewable portfolio standards
|
SAR
|
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Stock appreciation right
|
SEC
|
|
Securities and Exchange Commission
|
See
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Means the referenced material is incorporated by reference
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Spin-Off
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The distribution to HEI shareholders of all of the common stock of ASB Hawaii immediately prior to the Merger
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TDR
|
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Troubled debt restructuring
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Trust III
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HECO Capital Trust III
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Utilities
|
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Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited
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VIE
|
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Variable interest entity
|
•
|
the successful and timely completion of the proposed Merger with NextEra Energy, Inc. (NEE), which could be materially and adversely affected by, among other things, resolving the litigation brought in connection with the proposed Merger, the timing and terms and conditions of required governmental and regulatory approvals, the ability to obtain the required shareholder approval and the ability to maintain relationships with employees, customers or suppliers, as well as the ability to integrate the businesses;
|
•
|
the ability of ASB to operate successfully after the Spin-Off of its parent ASB Hawaii;
|
•
|
international, national and local economic conditions, including the state of the Hawaii tourism, defense and construction industries, the strength or weakness of the Hawaii and continental U.S. real estate markets (including the fair value and/or the actual performance of collateral underlying loans held by American Savings Bank, F.S.B. (ASB), which could result in higher loan loss provisions and write-offs), decisions concerning the extent of the presence of the federal government and military in Hawaii, the implications and potential impacts of U.S. and foreign capital and credit market conditions and federal, state and international responses to those conditions, and the potential impacts of global developments (including global economic conditions and uncertainties, unrest, ongoing conflicts in North Africa and the Middle East, terrorist acts, potential conflict or crisis with North Korea or Iran, developments in the Ukraine and potential pandemics);
|
•
|
the effects of future actions or inaction of the U.S. government or related agencies, including those related to the U.S. debt ceiling and monetary policy;
|
•
|
weather and natural disasters (e.g., hurricanes, earthquakes, tsunamis, lightning strikes, lava flows and the potential effects of climate change, such as more severe storms and rising sea levels), including their impact on the Company's and Utilities' operations and the economy;
|
•
|
the timing and extent of changes in interest rates and the shape of the yield curve;
|
•
|
the ability of the Company and the Utilities to access the credit and capital markets (e.g., to obtain commercial paper and other short-term and long-term debt financing, including lines of credit, and, in the case of HEI, to issue common stock) under volatile and challenging market conditions, and the cost of such financings, if available;
|
•
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the risks inherent in changes in the value of the Company’s pension and other retirement plan assets and ASB’s securities available for sale;
|
•
|
changes in laws, regulations, market conditions and other factors that result in changes in assumptions used to calculate retirement benefits costs and funding requirements;
|
•
|
the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) and of the rules and regulations that the Dodd-Frank Act requires to be promulgated;
|
•
|
increasing competition in the banking industry (e.g., increased price competition for deposits, or an outflow of deposits to alternative investments, which may have an adverse impact on ASB’s cost of funds);
|
•
|
the PUC’s potential delay in considering (and potential disapproval of actual or proposed) Hawaii Clean Energy Initiative (HCEI)-related costs; reliance by the Utilities on outside parties such as the state, independent power producers (IPPs) and developers; potential changes in political support for the HCEI; and uncertainties surrounding wind power, proposed undersea cables, biofuels, environmental assessments and the impacts of implementation of the HCEI on future costs of electricity);
|
•
|
the ability of the Utilities to develop, implement and recover the costs of implementing the Utilities’ action plans and business model changes that are being developed in response to the four orders that the Public Utilities Commission of the State of Hawaii (PUC) issued in April 2014, in which the PUC: directed the Utilities to develop, among other things, Power Supply Improvement Plans, a Demand Response Portfolio Plan and a Distributed Generation Interconnection Plan; described the PUC’s inclinations on the future of Hawaii’s electric utilities and the vision, business strategies and regulatory policy changes required to align the Utilities’ business model with customer interests and the state’s public policy goals; and emphasized the need to “leap ahead” of other states in creating a 21st century generation system and modern transmission and distribution grids;
|
•
|
capacity and supply constraints or difficulties, especially if generating units (utility-owned or IPP-owned) fail or measures such as demand-side management (DSM), distributed generation (DG), combined heat and power or other firm capacity supply-side resources fall short of achieving their forecasted benefits or are otherwise insufficient to reduce or meet peak demand;
|
•
|
fuel oil price changes, delivery of adequate fuel by suppliers and the continued availability to the electric utilities of their energy cost adjustment clauses (ECACs);
|
•
|
the continued availability to the electric utilities of other cost recovery mechanisms, including the purchased power adjustment clauses (PPACs), rate adjustment mechanisms (RAMs) and pension and postretirement benefits other than pensions (OPEB) tracking mechanisms, and the continued decoupling of revenues from sales to mitigate the effects of declining kilowatthour sales;
|
•
|
the impact of fuel price volatility on customer satisfaction and political and regulatory support for the Utilities;
|
•
|
the risks associated with increasing reliance on renewable energy, including the availability and cost of non-fossil fuel supplies for renewable energy generation and the operational impacts of adding intermittent sources of renewable energy to the electric grid;
|
•
|
the growing risk that energy production from renewable generating resources may be curtailed and the interconnection of additional resources will be constrained as more generating resources are added to the Utilities' electric systems and as customers reduce their energy usage;
|
•
|
the ability of IPPs to deliver the firm capacity anticipated in their power purchase agreements (PPAs);
|
•
|
the potential that, as IPP contracts near the end of their terms, there may be less economic incentive for the IPPs to make investments in their units to ensure the availability of their units;
|
•
|
the ability of the Utilities to negotiate, periodically, favorable agreements for significant resources such as fuel supply contracts and collective bargaining agreements;
|
•
|
new technological developments that could affect the operations and prospects of HEI and ASB or their competitors;
|
•
|
new technological developments, such as the commercial development of energy storage and microgrids, that could affect the operations of the Utilities;
|
•
|
cyber security risks and the potential for cyber incidents, including potential incidents at HEI, ASB and the Utilities (including at ASB branches and electric utility plants) and incidents at data processing centers they use, to the extent not prevented by intrusion detection and prevention systems, anti-virus software, firewalls and other general information technology controls;
|
•
|
federal, state, county and international governmental and regulatory actions, such as existing, new and changes in laws, rules and regulations applicable to HEI, the Utilities and ASB (including changes in taxation, increases in capital requirements, regulatory policy changes, environmental laws and regulations (including resulting compliance costs and risks of fines and penalties and/or liabilities), the regulation of greenhouse gas (GHG) emissions, governmental fees and assessments (such as Federal Deposit Insurance Corporation assessments), and potential carbon “cap and trade” legislation that may fundamentally alter costs to produce electricity and accelerate the move to renewable generation);
|
•
|
developments in laws, regulations, and policies governing protections for historic, archaeological, and cultural sites, and plant and animal species and habitats, as well as developments in the implementation and enforcement of such laws, regulations, and policies;
|
•
|
discovery of conditions that may be attributable to historical chemical releases, including any necessary investigation and remediation, and any associated enforcement, litigation, or regulatory oversight;
|
•
|
decisions by the PUC in rate cases and other proceedings (including the risks of delays in the timing of decisions, adverse changes in final decisions from interim decisions and the disallowance of project costs as a result of adverse regulatory audit reports or otherwise);
|
•
|
decisions by the PUC and by other agencies and courts on land use, environmental and other permitting issues (such as required corrective actions, restrictions and penalties that may arise, such as with respect to environmental conditions or renewable portfolio standards (RPS));
|
•
|
potential enforcement actions by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board (FRB), the Federal Deposit Insurance Corporation (FDIC) and/or other governmental authorities (such as consent orders, required corrective actions, restrictions and penalties that may arise, for example, with respect to compliance deficiencies under existing or new banking and consumer protection laws and regulations or with respect to capital adequacy);
|
•
|
the ability of the Utilities to recover increasing costs and earn a reasonable return on capital investments not covered by RAMs;
|
•
|
the risks associated with the geographic concentration of HEI’s businesses and ASB’s loans, ASB’s concentration in a single product type (i.e., first mortgages) and ASB’s significant credit relationships (i.e., concentrations of large loans and/or credit lines with certain customers);
|
•
|
changes in accounting principles applicable to HEI, the Utilities and ASB, including the adoption of new U.S. accounting standards, the potential discontinuance of regulatory accounting and the effects of potentially required consolidation of variable interest entities (VIEs) or required capital lease accounting for PPAs with IPPs;
|
•
|
changes by securities rating agencies in their ratings of the securities of HEI and Hawaiian Electric and the results of financing efforts;
|
•
|
faster than expected loan prepayments that can cause an acceleration of the amortization of premiums on loans and investments and the impairment of mortgage-servicing assets of ASB;
|
•
|
changes in ASB’s loan portfolio credit profile and asset quality which may increase or decrease the required level of provision for loan losses, allowance for loan losses and charge-offs;
|
•
|
changes in ASB’s deposit cost or mix which may have an adverse impact on ASB’s cost of funds;
|
•
|
the final outcome of tax positions taken by HEI, the Utilities and ASB;
|
•
|
the risks of suffering losses and incurring liabilities that are uninsured (e.g., damages to the Utilities’ transmission and distribution system and losses from business interruption) or underinsured (e.g., losses not covered as a result of insurance deductibles or other exclusions or exceeding policy limits); and
|
•
|
other risks or uncertainties described elsewhere in this report and in other reports (e.g., “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K) previously and subsequently filed by HEI and/or Hawaiian Electric with the Securities and Exchange Commission (SEC).
|
|
|
Three months ended March 31
|
||||||
(in thousands, except per share amounts)
|
|
2015
|
|
2014
|
||||
Revenues
|
|
|
|
|
|
|
||
Electric utility
|
|
$
|
573,442
|
|
|
$
|
720,062
|
|
Bank
|
|
64,348
|
|
|
63,619
|
|
||
Other
|
|
72
|
|
|
68
|
|
||
Total revenues
|
|
637,862
|
|
|
783,749
|
|
||
Expenses
|
|
|
|
|
|
|
||
Electric utility
|
|
515,806
|
|
|
649,396
|
|
||
Bank
|
|
43,717
|
|
|
41,088
|
|
||
Other
|
|
8,833
|
|
|
4,051
|
|
||
Total expenses
|
|
568,356
|
|
|
694,535
|
|
||
Operating income (loss)
|
|
|
|
|
|
|
||
Electric utility
|
|
57,636
|
|
|
70,666
|
|
||
Bank
|
|
20,631
|
|
|
22,531
|
|
||
Other
|
|
(8,761
|
)
|
|
(3,983
|
)
|
||
Total operating income
|
|
69,506
|
|
|
89,214
|
|
||
Interest expense, net—other than on deposit liabilities and other bank borrowings
|
|
(19,100
|
)
|
|
(19,456
|
)
|
||
Allowance for borrowed funds used during construction
|
|
499
|
|
|
614
|
|
||
Allowance for equity funds used during construction
|
|
1,413
|
|
|
1,609
|
|
||
Income before income taxes
|
|
52,318
|
|
|
71,981
|
|
||
Income taxes
|
|
19,979
|
|
|
25,721
|
|
||
Net income
|
|
32,339
|
|
|
46,260
|
|
||
Preferred stock dividends of subsidiaries
|
|
473
|
|
|
473
|
|
||
Net income for common stock
|
|
$
|
31,866
|
|
|
$
|
45,787
|
|
Basic earnings per common share
|
|
$
|
0.31
|
|
|
$
|
0.45
|
|
Diluted earnings per common share
|
|
$
|
0.31
|
|
|
$
|
0.45
|
|
Dividends per common share
|
|
$
|
0.31
|
|
|
$
|
0.31
|
|
Weighted-average number of common shares outstanding
|
|
103,281
|
|
|
101,382
|
|
||
Net effect of potentially dilutive shares
|
|
286
|
|
|
783
|
|
||
Adjusted weighted-average shares
|
|
103,567
|
|
|
102,165
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2015
|
|
2014
|
||||
Net income for common stock
|
|
$
|
31,866
|
|
|
$
|
45,787
|
|
Other comprehensive income, net of taxes:
|
|
|
|
|
|
|
||
Net unrealized gains on available-for-sale investment securities:
|
|
|
|
|
|
|
||
Net unrealized gains on available-for-sale investment securities arising during the period, net of tax benefits of $2,278 and $1,664 for the respective periods
|
|
3,451
|
|
|
2,520
|
|
||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of nil and $1,132 for the respective periods
|
|
—
|
|
|
(1,715
|
)
|
||
Derivatives qualified as cash flow hedges:
|
|
|
|
|
|
|
||
Less: reclassification adjustment to net income, net of tax benefits of $37 for both periods
|
|
59
|
|
|
59
|
|
||
Retirement benefit plans:
|
|
|
|
|
|
|
||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $3,486 and $1,796 for the respective periods
|
|
5,459
|
|
|
2,813
|
|
||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $3,127 and $1,598 for the respective periods
|
|
(4,911
|
)
|
|
(2,510
|
)
|
||
Other comprehensive income, net of taxes
|
|
4,058
|
|
|
1,167
|
|
||
Comprehensive income attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
35,924
|
|
|
$
|
46,954
|
|
(dollars in thousands)
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
292,168
|
|
|
$
|
175,542
|
|
Accounts receivable and unbilled revenues, net
|
|
255,365
|
|
|
313,696
|
|
||
Available-for-sale investment securities, at fair value
|
|
590,648
|
|
|
550,394
|
|
||
Stock in Federal Home Loan Bank of Seattle, at cost
|
|
63,711
|
|
|
69,302
|
|
||
Loans receivable held for investment, net
|
|
4,401,504
|
|
|
4,389,033
|
|
||
Loans held for sale, at lower of cost or fair value
|
|
9,906
|
|
|
8,424
|
|
||
Property, plant and equipment, net of accumulated depreciation of $2,258,065 and $2,250,950 at the respective dates
|
|
4,190,835
|
|
|
4,148,774
|
|
||
Regulatory assets
|
|
905,589
|
|
|
905,264
|
|
||
Other
|
|
481,531
|
|
|
542,523
|
|
||
Goodwill
|
|
82,190
|
|
|
82,190
|
|
||
Total assets
|
|
$
|
11,273,447
|
|
|
$
|
11,185,142
|
|
Liabilities and shareholders’ equity
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
167,784
|
|
|
$
|
186,425
|
|
Interest and dividends payable
|
|
25,225
|
|
|
25,336
|
|
||
Deposit liabilities
|
|
4,751,328
|
|
|
4,623,415
|
|
||
Short-term borrowings—other than bank
|
|
30,500
|
|
|
118,972
|
|
||
Other bank borrowings
|
|
312,094
|
|
|
290,656
|
|
||
Long-term debt, net—other than bank
|
|
1,506,546
|
|
|
1,506,546
|
|
||
Deferred income taxes
|
|
640,778
|
|
|
633,570
|
|
||
Regulatory liabilities
|
|
351,712
|
|
|
344,849
|
|
||
Contributions in aid of construction
|
|
474,385
|
|
|
466,432
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
624,555
|
|
|
632,845
|
|
||
Other
|
|
456,338
|
|
|
531,230
|
|
||
Total liabilities
|
|
9,341,245
|
|
|
9,360,276
|
|
||
Preferred stock of subsidiaries - not subject to mandatory redemption
|
|
34,293
|
|
|
34,293
|
|
||
Commitments and contingencies (Notes 4 and 5)
|
|
|
|
|
|
|
||
Shareholders’ equity
|
|
|
|
|
|
|
||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none
|
|
—
|
|
|
—
|
|
||
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 107,417,644 shares and 102,565,266 shares at the respective dates
|
|
1,624,549
|
|
|
1,521,297
|
|
||
Retained earnings
|
|
296,680
|
|
|
296,654
|
|
||
Accumulated other comprehensive loss, net of tax benefits
|
|
(23,320
|
)
|
|
(27,378
|
)
|
||
Total shareholders’ equity
|
|
1,897,909
|
|
|
1,790,573
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
11,273,447
|
|
|
$
|
11,185,142
|
|
|
|
Common stock
|
|
Retained
|
|
Accumulated
other
comprehensive
|
|
|
|||||||||||
(in thousands, except per share amounts)
|
|
Shares
|
|
Amount
|
|
Earnings
|
|
income (loss)
|
|
Total
|
|||||||||
Balance, December 31, 2014
|
|
102,565
|
|
|
$
|
1,521,297
|
|
|
$
|
296,654
|
|
|
$
|
(27,378
|
)
|
|
$
|
1,790,573
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
31,866
|
|
|
—
|
|
|
31,866
|
|
||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,058
|
|
|
4,058
|
|
||||
Issuance of common stock, net
|
|
4,853
|
|
|
103,252
|
|
|
—
|
|
|
—
|
|
|
103,252
|
|
||||
Common stock dividends ($0.31 per share)
|
|
—
|
|
|
—
|
|
|
(31,840
|
)
|
|
—
|
|
|
(31,840
|
)
|
||||
Balance, March 31, 2015
|
|
107,418
|
|
|
$
|
1,624,549
|
|
|
$
|
296,680
|
|
|
$
|
(23,320
|
)
|
|
$
|
1,897,909
|
|
Balance, December 31, 2013
|
|
101,260
|
|
|
$
|
1,488,126
|
|
|
$
|
255,030
|
|
|
$
|
(16,750
|
)
|
|
$
|
1,726,406
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
45,787
|
|
|
—
|
|
|
45,787
|
|
||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,167
|
|
|
1,167
|
|
||||
Issuance of common stock, net
|
|
218
|
|
|
3,212
|
|
|
—
|
|
|
—
|
|
|
3,212
|
|
||||
Common stock dividends ($0.31 per share)
|
|
—
|
|
|
—
|
|
|
(31,448
|
)
|
|
—
|
|
|
(31,448
|
)
|
||||
Balance, March 31, 2014
|
|
101,478
|
|
|
$
|
1,491,338
|
|
|
$
|
269,369
|
|
|
$
|
(15,583
|
)
|
|
$
|
1,745,124
|
|
Three months ended March 31
|
|
2015
|
|
2014
|
||||
(in thousands)
|
|
|
|
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
32,339
|
|
|
$
|
46,260
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||
Depreciation of property, plant and equipment
|
|
45,865
|
|
|
43,181
|
|
||
Other amortization
|
|
1,362
|
|
|
1,609
|
|
||
Provision for loan losses
|
|
614
|
|
|
995
|
|
||
Loans receivable originated and purchased, held for sale
|
|
(79,070
|
)
|
|
(46,998
|
)
|
||
Proceeds from sale of loans receivable, held for sale
|
|
78,332
|
|
|
48,720
|
|
||
Increase in deferred income taxes
|
|
15,265
|
|
|
6,457
|
|
||
Excess tax benefits from share-based payment arrangements
|
|
(968
|
)
|
|
(164
|
)
|
||
Allowance for equity funds used during construction
|
|
(1,413
|
)
|
|
(1,609
|
)
|
||
Change in cash overdraft
|
|
—
|
|
|
(1,038
|
)
|
||
Changes in assets and liabilities
|
|
|
|
|
|
|
||
Decrease in accounts receivable and unbilled revenues, net
|
|
58,331
|
|
|
22,352
|
|
||
Decrease (increase) in fuel oil stock
|
|
20,731
|
|
|
(34,260
|
)
|
||
Increase in regulatory assets
|
|
(10,827
|
)
|
|
(9,258
|
)
|
||
Decrease in accounts, interest and dividends payable
|
|
(42,463
|
)
|
|
(9,307
|
)
|
||
Change in prepaid and accrued income taxes and utility revenue taxes
|
|
(61,397
|
)
|
|
(19,474
|
)
|
||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability
|
|
123
|
|
|
(818
|
)
|
||
Change in other assets and liabilities
|
|
19,826
|
|
|
(27,227
|
)
|
||
Net cash provided by operating activities
|
|
76,650
|
|
|
19,421
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
||
Available-for-sale investment securities purchased
|
|
(63,370
|
)
|
|
(79,912
|
)
|
||
Principal repayments on available-for-sale investment securities
|
|
28,486
|
|
|
15,597
|
|
||
Proceeds from sale of available-for-sale investment securities
|
|
—
|
|
|
79,564
|
|
||
Redemption of stock from Federal Home Loan Bank of Seattle
|
|
5,590
|
|
|
5,848
|
|
||
Net increase in loans held for investment
|
|
(12,524
|
)
|
|
(37,887
|
)
|
||
Proceeds from sale of real estate acquired in settlement of loans
|
|
606
|
|
|
1,429
|
|
||
Capital expenditures
|
|
(59,011
|
)
|
|
(65,829
|
)
|
||
Contributions in aid of construction
|
|
9,145
|
|
|
6,958
|
|
||
Other
|
|
3,281
|
|
|
—
|
|
||
Net cash used in investing activities
|
|
(87,797
|
)
|
|
(74,232
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
||
Net increase in deposit liabilities
|
|
127,913
|
|
|
105,510
|
|
||
Net increase (decrease) in short-term borrowings with original maturities of three months or less
|
|
(88,472
|
)
|
|
30,887
|
|
||
Net increase in retail repurchase agreements
|
|
21,451
|
|
|
141
|
|
||
Excess tax benefits from share-based payment arrangements
|
|
968
|
|
|
164
|
|
||
Net proceeds from issuance of common stock
|
|
104,468
|
|
|
3,054
|
|
||
Common stock dividends
|
|
(31,829
|
)
|
|
(31,435
|
)
|
||
Preferred stock dividends of subsidiaries
|
|
(473
|
)
|
|
(473
|
)
|
||
Other
|
|
(6,253
|
)
|
|
(3,953
|
)
|
||
Net cash provided by financing activities
|
|
127,773
|
|
|
103,895
|
|
||
Net increase in cash and cash equivalents
|
|
116,626
|
|
|
49,084
|
|
||
Cash and cash equivalents, beginning of period
|
|
175,542
|
|
|
220,036
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
292,168
|
|
|
$
|
269,120
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2015
|
|
2014
|
||||
Revenues
|
|
$
|
573,442
|
|
|
$
|
720,062
|
|
Expenses
|
|
|
|
|
|
|
||
Fuel oil
|
|
176,806
|
|
|
286,300
|
|
||
Purchased power
|
|
136,007
|
|
|
164,916
|
|
||
Other operation and maintenance
|
|
104,002
|
|
|
88,606
|
|
||
Depreciation
|
|
44,243
|
|
|
41,603
|
|
||
Taxes, other than income taxes
|
|
54,748
|
|
|
67,971
|
|
||
Total expenses
|
|
515,806
|
|
|
649,396
|
|
||
Operating income
|
|
57,636
|
|
|
70,666
|
|
||
Allowance for equity funds used during construction
|
|
1,413
|
|
|
1,609
|
|
||
Interest expense and other charges, net
|
|
(16,325
|
)
|
|
(15,723
|
)
|
||
Allowance for borrowed funds used during construction
|
|
499
|
|
|
614
|
|
||
Income before income taxes
|
|
43,223
|
|
|
57,166
|
|
||
Income taxes
|
|
15,850
|
|
|
21,247
|
|
||
Net income
|
|
27,373
|
|
|
35,919
|
|
||
Preferred stock dividends of subsidiaries
|
|
229
|
|
|
229
|
|
||
Net income attributable to Hawaiian Electric
|
|
27,144
|
|
|
35,690
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
270
|
|
||
Net income for common stock
|
|
$
|
26,874
|
|
|
$
|
35,420
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2015
|
|
2014
|
||||
Net income for common stock
|
|
$
|
26,874
|
|
|
$
|
35,420
|
|
Other comprehensive income, net of taxes:
|
|
|
|
|
|
|
||
Retirement benefit plans:
|
|
|
|
|
|
|
||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $3,141 and $1,605 for the respective periods
|
|
4,933
|
|
|
2,519
|
|
||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $3,127 and $1,598 for the respective periods
|
|
(4,911
|
)
|
|
(2,510
|
)
|
||
Other comprehensive income, net of taxes
|
|
22
|
|
|
9
|
|
||
Comprehensive income attributable to Hawaiian Electric Company, Inc.
|
|
$
|
26,896
|
|
|
$
|
35,429
|
|
(dollars in thousands, except par value)
|
|
March 31,
2015 |
|
December 31,
2014 |
||||
Assets
|
|
|
|
|
|
|
||
Property, plant and equipment
|
|
|
|
|
||||
Utility property, plant and equipment
|
|
|
|
|
|
|
||
Land
|
|
$
|
52,022
|
|
|
$
|
52,299
|
|
Plant and equipment
|
|
6,066,523
|
|
|
6,009,482
|
|
||
Less accumulated depreciation
|
|
(2,189,090
|
)
|
|
(2,175,510
|
)
|
||
Construction in progress
|
|
164,851
|
|
|
158,616
|
|
||
Utility property, plant and equipment, net
|
|
4,094,306
|
|
|
4,044,887
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation of $1,228 and $1,227 at respective dates
|
|
6,562
|
|
|
6,563
|
|
||
Total property, plant and equipment, net
|
|
4,100,868
|
|
|
4,051,450
|
|
||
Current assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
8,120
|
|
|
13,762
|
|
||
Customer accounts receivable, net
|
|
124,995
|
|
|
158,484
|
|
||
Accrued unbilled revenues, net
|
|
109,494
|
|
|
137,374
|
|
||
Other accounts receivable, net
|
|
8,668
|
|
|
4,283
|
|
||
Fuel oil stock, at average cost
|
|
85,315
|
|
|
106,046
|
|
||
Materials and supplies, at average cost
|
|
58,607
|
|
|
57,250
|
|
||
Prepayments and other
|
|
43,355
|
|
|
66,383
|
|
||
Regulatory assets
|
|
102,745
|
|
|
71,421
|
|
||
Total current assets
|
|
541,299
|
|
|
615,003
|
|
||
Other long-term assets
|
|
|
|
|
|
|
||
Regulatory assets
|
|
802,844
|
|
|
833,843
|
|
||
Unamortized debt expense
|
|
8,216
|
|
|
8,323
|
|
||
Other
|
|
82,273
|
|
|
81,838
|
|
||
Total other long-term assets
|
|
893,333
|
|
|
924,004
|
|
||
Total assets
|
|
$
|
5,535,500
|
|
|
$
|
5,590,457
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
||
Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 15,805,327 shares)
|
|
$
|
105,388
|
|
|
$
|
105,388
|
|
Premium on capital stock
|
|
578,933
|
|
|
578,938
|
|
||
Retained earnings
|
|
1,002,046
|
|
|
997,773
|
|
||
Accumulated other comprehensive income, net of income taxes-retirement benefit plans
|
|
67
|
|
|
45
|
|
||
Common stock equity
|
|
1,686,434
|
|
|
1,682,144
|
|
||
Cumulative preferred stock — not subject to mandatory redemption
|
|
34,293
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
1,206,546
|
|
|
1,206,546
|
|
||
Total capitalization
|
|
2,927,273
|
|
|
2,922,983
|
|
||
Commitments and contingencies (Note 4)
|
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
|
||
Short-term borrowings from non-affiliates
|
|
30,000
|
|
|
—
|
|
||
Accounts payable
|
|
138,509
|
|
|
163,934
|
|
||
Interest and preferred dividends payable
|
|
24,257
|
|
|
22,316
|
|
||
Taxes accrued
|
|
182,872
|
|
|
250,402
|
|
||
Regulatory liabilities
|
|
1,174
|
|
|
632
|
|
||
Other
|
|
65,989
|
|
|
65,146
|
|
||
Total current liabilities
|
|
442,801
|
|
|
502,430
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
||
Deferred income taxes
|
|
596,984
|
|
|
602,872
|
|
||
Regulatory liabilities
|
|
350,538
|
|
|
344,217
|
|
||
Unamortized tax credits
|
|
82,037
|
|
|
79,492
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
587,165
|
|
|
595,395
|
|
||
Other
|
|
74,317
|
|
|
76,636
|
|
||
Total deferred credits and other liabilities
|
|
1,691,041
|
|
|
1,698,612
|
|
||
Contributions in aid of construction
|
|
474,385
|
|
|
466,432
|
|
||
Total capitalization and liabilities
|
|
$
|
5,535,500
|
|
|
$
|
5,590,457
|
|
|
|
Common stock
|
|
Premium
on
capital
|
|
Retained
|
|
Accumulated
other
comprehensive
|
|
|
|||||||||||||
(in thousands)
|
|
Shares
|
|
Amount
|
|
stock
|
|
earnings
|
|
income (loss)
|
|
Total
|
|||||||||||
Balance, December 31, 2014
|
|
15,805
|
|
|
$
|
105,388
|
|
|
$
|
578,938
|
|
|
$
|
997,773
|
|
|
$
|
45
|
|
|
$
|
1,682,144
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,874
|
|
|
—
|
|
|
26,874
|
|
|||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
22
|
|
|||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,601
|
)
|
|
—
|
|
|
(22,601
|
)
|
|||||
Common stock issuance expenses
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||||
Balance, March 31, 2015
|
|
15,805
|
|
|
$
|
105,388
|
|
|
$
|
578,933
|
|
|
$
|
1,002,046
|
|
|
$
|
67
|
|
|
$
|
1,686,434
|
|
Balance, December 31, 2013
|
|
15,429
|
|
|
$
|
102,880
|
|
|
$
|
541,452
|
|
|
$
|
948,624
|
|
|
$
|
608
|
|
|
$
|
1,593,564
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,420
|
|
|
—
|
|
|
35,420
|
|
|||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,707
|
)
|
|
—
|
|
|
(22,707
|
)
|
|||||
Common stock issuance expenses
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||
Balance, March 31, 2014
|
|
15,429
|
|
|
$
|
102,880
|
|
|
$
|
541,449
|
|
|
$
|
961,337
|
|
|
$
|
617
|
|
|
$
|
1,606,283
|
|
Three months ended March 31
|
|
2015
|
|
2014
|
||||
(in thousands)
|
|
|
|
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
27,373
|
|
|
$
|
35,919
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||
Depreciation of property, plant and equipment
|
|
44,243
|
|
|
41,603
|
|
||
Other amortization
|
|
689
|
|
|
1,621
|
|
||
Increase in deferred income taxes
|
|
15,132
|
|
|
20,344
|
|
||
Change in tax credits, net
|
|
2,576
|
|
|
2,032
|
|
||
Allowance for equity funds used during construction
|
|
(1,413
|
)
|
|
(1,609
|
)
|
||
Change in cash overdraft
|
|
—
|
|
|
(1,038
|
)
|
||
Changes in assets and liabilities
|
|
|
|
|
|
|
||
Decrease in accounts receivable
|
|
29,104
|
|
|
8,804
|
|
||
Decrease in accrued unbilled revenues
|
|
27,880
|
|
|
12,260
|
|
||
Decrease (increase) in fuel oil stock
|
|
20,731
|
|
|
(34,260
|
)
|
||
Increase in materials and supplies
|
|
(1,357
|
)
|
|
(1,045
|
)
|
||
Increase in regulatory assets
|
|
(10,827
|
)
|
|
(9,258
|
)
|
||
Decrease in accounts payable
|
|
(49,136
|
)
|
|
(16,024
|
)
|
||
Change in prepaid and accrued income taxes and revenue taxes
|
|
(63,696
|
)
|
|
(47,526
|
)
|
||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability
|
|
110
|
|
|
(205
|
)
|
||
Change in other assets and liabilities
|
|
(8,522
|
)
|
|
(10,981
|
)
|
||
Net cash provided by operating activities
|
|
32,887
|
|
|
637
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(54,358
|
)
|
|
(64,462
|
)
|
||
Contributions in aid of construction
|
|
9,145
|
|
|
6,958
|
|
||
Net cash used in investing activities
|
|
(45,213
|
)
|
|
(57,504
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
||
Common stock dividends
|
|
(22,601
|
)
|
|
(22,707
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(499
|
)
|
|
(499
|
)
|
||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
30,000
|
|
|
34,996
|
|
||
Other
|
|
(216
|
)
|
|
(389
|
)
|
||
Net cash provided by financing activities
|
|
6,684
|
|
|
11,401
|
|
||
Net decrease in cash and cash equivalents
|
|
(5,642
|
)
|
|
(45,466
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
13,762
|
|
|
62,825
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
8,120
|
|
|
$
|
17,359
|
|
(in thousands)
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
||||||||
Three months ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
573,431
|
|
|
$
|
64,348
|
|
|
$
|
83
|
|
|
$
|
637,862
|
|
Intersegment revenues (eliminations)
|
|
11
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
||||
Revenues
|
|
573,442
|
|
|
64,348
|
|
|
72
|
|
|
637,862
|
|
||||
Income (loss) before income taxes
|
|
43,223
|
|
|
20,631
|
|
|
(11,536
|
)
|
|
52,318
|
|
||||
Income taxes (benefit)
|
|
15,850
|
|
|
7,156
|
|
|
(3,027
|
)
|
|
19,979
|
|
||||
Net income (loss)
|
|
27,373
|
|
|
13,475
|
|
|
(8,509
|
)
|
|
32,339
|
|
||||
Preferred stock dividends of subsidiaries
|
|
499
|
|
|
—
|
|
|
(26
|
)
|
|
473
|
|
||||
Net income (loss) for common stock
|
|
26,874
|
|
|
13,475
|
|
|
(8,483
|
)
|
|
31,866
|
|
||||
Assets (at March 31, 2015)
|
|
5,535,500
|
|
|
5,724,877
|
|
|
13,070
|
|
|
11,273,447
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Three months ended March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
720,056
|
|
|
$
|
63,619
|
|
|
$
|
74
|
|
|
$
|
783,749
|
|
Intersegment revenues (eliminations)
|
|
6
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
||||
Revenues
|
|
720,062
|
|
|
63,619
|
|
|
68
|
|
|
783,749
|
|
||||
Income (loss) before income taxes
|
|
57,166
|
|
|
22,532
|
|
|
(7,717
|
)
|
|
71,981
|
|
||||
Income taxes (benefit)
|
|
21,247
|
|
|
8,133
|
|
|
(3,659
|
)
|
|
25,721
|
|
||||
Net income (loss)
|
|
35,919
|
|
|
14,399
|
|
|
(4,058
|
)
|
|
46,260
|
|
||||
Preferred stock dividends of subsidiaries
|
|
499
|
|
|
—
|
|
|
(26
|
)
|
|
473
|
|
||||
Net income (loss) for common stock
|
|
35,420
|
|
|
14,399
|
|
|
(4,032
|
)
|
|
45,787
|
|
||||
Assets (at December 31, 2014)
|
|
5,590,457
|
|
|
5,566,222
|
|
|
28,463
|
|
|
11,185,142
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2015
|
|
2014
|
||||
Balance, beginning of period
|
|
$
|
29,419
|
|
|
$
|
43,106
|
|
Accretion expense
|
|
6
|
|
|
370
|
|
||
Liabilities incurred
|
|
—
|
|
|
—
|
|
||
Liabilities settled
|
|
(1,614
|
)
|
|
(2,240
|
)
|
||
Revisions in estimated cash flows
|
|
—
|
|
|
—
|
|
||
Balance, end of period
|
|
$
|
27,811
|
|
|
$
|
41,236
|
|
•
|
An adjustment to the Rate Base RAM Adjustment to include
90%
of the amount of the current RAM Period Rate Base RAM Adjustment that exceeds the Rate Base RAM Adjustment from the prior year, to be effective with the Utilities’ 2014 decoupling filing.
|
•
|
Effective March 1, 2014, the interest rate to be applied on the outstanding RBA balances to be the short term debt rate used in each Utilities last rate case (ranging from
1.25%
to
3.25%
), instead of the
6%
that had been previously approved.
|
(in millions)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
||||||
Annual incremental RAM adjusted revenues
|
|
$
|
20.3
|
|
|
$
|
2.4
|
|
|
$
|
3.4
|
|
Annual change in accrued earnings sharing credits to be refunded
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
Annual change in accrued RBA balance as of December 31, 2014 (and associated revenue taxes) to be collected
|
|
$
|
(9.2
|
)
|
|
$
|
0.1
|
|
|
$
|
(2.2
|
)
|
Net annual incremental amount to be collected under the tariffs
|
|
$
|
11.1
|
|
|
$
|
2.5
|
|
|
$
|
1.1
|
|
Impact on typical residential customer monthly bill (in dollars) *
|
|
$
|
0.56
|
|
|
$
|
1.10
|
|
|
$
|
0.60
|
|
•
|
Distributed Generation Interconnection Plan to be filed within
120
days. The Utilities’ Plan was filed in August 2014.
|
•
|
Plan to implement an on-going distribution circuit monitoring program to measure real-time voltage and other power quality parameters to be filed within
60
days. The plan shall achieve full implementation of the distribution circuit monitoring program within
180
days. The Utilities’ Plan was filed in June 2014.
|
•
|
Action Plan for improving efficiencies in the interconnection requirements studies to be filed within
30
days. The Utilities’ Plan was filed in May 2014.
|
•
|
The Utilities are to file monthly reports providing details about interconnection requirements studies.
|
•
|
Proposal to implement an integrated interconnection queue for each distribution circuit for each island grid to be filed within
120
days. The Utilities’ integrated interconnection queue plan was filed in August 2014 and the integrated interconnection queues were implemented in January 2015.
|
(1)
|
Allowed intervention to ten parties in the proceeding,
|
(2)
|
Consolidated portions of two other proceedings related to rules on interconnection of distributed generating facilities with the Utilities system,
|
(3)
|
Declined to rule on distributed generation interconnection plan filed in August 2014 as a result of the Reliability Standards Working Group order,
|
(4)
|
Declined to rule on Utilities’ TDG motion, filed on January 20, 2015, and instead, directed the parties to collaborate on a “Transition Plan” from existing DER programs, including NEM, to a longer-term DER market structure;
|
(5)
|
Ordered the parties to collaborate on issues through a series of bi-weekly technical sessions;
|
(6)
|
Issued a Statement of Issues and a Procedural Schedule for the docket that directs the parties to file stipulations on areas of agreement, or separate statements of positions on issues where agreement cannot be reached, by June 29, 2015; and
|
(7)
|
Ordered the Utilities to submit weekly reports documenting progress on clearing interconnection applications, and monthly reports on the status of key technical developments to enable DER market growth.
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Revenues
|
|
$
|
399,741
|
|
|
88,055
|
|
|
85,674
|
|
|
—
|
|
|
(28
|
)
|
|
$
|
573,442
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
118,403
|
|
|
23,385
|
|
|
35,018
|
|
|
—
|
|
|
—
|
|
|
176,806
|
|
||
Purchased power
|
|
103,250
|
|
|
21,893
|
|
|
10,864
|
|
|
—
|
|
|
—
|
|
|
136,007
|
|
||
Other operation and maintenance
|
|
70,084
|
|
|
16,399
|
|
|
17,519
|
|
|
—
|
|
|
—
|
|
|
104,002
|
|
||
Depreciation
|
|
29,389
|
|
|
9,313
|
|
|
5,541
|
|
|
—
|
|
|
—
|
|
|
44,243
|
|
||
Taxes, other than income taxes
|
|
38,201
|
|
|
8,384
|
|
|
8,163
|
|
|
—
|
|
|
—
|
|
|
54,748
|
|
||
Total expenses
|
|
359,327
|
|
|
79,374
|
|
|
77,105
|
|
|
—
|
|
|
—
|
|
|
515,806
|
|
||
Operating income
|
|
40,414
|
|
|
8,681
|
|
|
8,569
|
|
|
—
|
|
|
(28
|
)
|
|
57,636
|
|
||
Allowance for equity funds used during construction
|
|
1,123
|
|
|
145
|
|
|
145
|
|
|
—
|
|
|
—
|
|
|
1,413
|
|
||
Equity in earnings of subsidiaries
|
|
7,692
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,692
|
)
|
|
—
|
|
||
Interest expense and other charges, net
|
|
(11,238
|
)
|
|
(2,680
|
)
|
|
(2,435
|
)
|
|
—
|
|
|
28
|
|
|
(16,325
|
)
|
||
Allowance for borrowed funds used during construction
|
|
388
|
|
|
53
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
499
|
|
||
Income before income taxes
|
|
38,379
|
|
|
6,199
|
|
|
6,337
|
|
|
—
|
|
|
(7,692
|
)
|
|
43,223
|
|
||
Income taxes
|
|
11,235
|
|
|
2,277
|
|
|
2,338
|
|
|
—
|
|
|
—
|
|
|
15,850
|
|
||
Net income
|
|
27,144
|
|
|
3,922
|
|
|
3,999
|
|
|
—
|
|
|
(7,692
|
)
|
|
27,373
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
134
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
229
|
|
||
Net income attributable to Hawaiian Electric
|
|
27,144
|
|
|
3,788
|
|
|
3,904
|
|
|
—
|
|
|
(7,692
|
)
|
|
27,144
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
||
Net income for common stock
|
|
$
|
26,874
|
|
|
3,788
|
|
|
3,904
|
|
|
—
|
|
|
(7,692
|
)
|
|
$
|
26,874
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income for common stock
|
|
$
|
26,874
|
|
|
3,788
|
|
|
3,904
|
|
|
—
|
|
|
(7,692
|
)
|
|
$
|
26,874
|
|
Other comprehensive income, net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
|
|
4,933
|
|
|
651
|
|
|
600
|
|
|
—
|
|
|
(1,251
|
)
|
|
4,933
|
|
||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(4,911
|
)
|
|
(651
|
)
|
|
(600
|
)
|
|
—
|
|
|
1,251
|
|
|
(4,911
|
)
|
||
Other comprehensive income, net of taxes
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
26,896
|
|
|
3,788
|
|
|
3,904
|
|
|
—
|
|
|
(7,692
|
)
|
|
$
|
26,896
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Revenues
|
|
$
|
512,455
|
|
|
104,931
|
|
|
102,693
|
|
|
—
|
|
|
(17
|
)
|
|
$
|
720,062
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
203,547
|
|
|
31,500
|
|
|
51,253
|
|
|
—
|
|
|
—
|
|
|
286,300
|
|
||
Purchased power
|
|
123,969
|
|
|
29,491
|
|
|
11,456
|
|
|
—
|
|
|
—
|
|
|
164,916
|
|
||
Other operation and maintenance
|
|
58,515
|
|
|
14,047
|
|
|
16,044
|
|
|
—
|
|
|
—
|
|
|
88,606
|
|
||
Depreciation
|
|
27,301
|
|
|
8,975
|
|
|
5,327
|
|
|
—
|
|
|
—
|
|
|
41,603
|
|
||
Taxes, other than income taxes
|
|
48,184
|
|
|
9,763
|
|
|
10,024
|
|
|
—
|
|
|
—
|
|
|
67,971
|
|
||
Total expenses
|
|
461,516
|
|
|
93,776
|
|
|
94,104
|
|
|
—
|
|
|
—
|
|
|
649,396
|
|
||
Operating income
|
|
50,939
|
|
|
11,155
|
|
|
8,589
|
|
|
—
|
|
|
(17
|
)
|
|
70,666
|
|
||
Allowance for equity funds used during construction
|
|
1,472
|
|
|
65
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
1,609
|
|
||
Equity in earnings of subsidiaries
|
|
8,917
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,917
|
)
|
|
—
|
|
||
Interest expense and other charges, net
|
|
(10,487
|
)
|
|
(2,748
|
)
|
|
(2,505
|
)
|
|
—
|
|
|
17
|
|
|
(15,723
|
)
|
||
Allowance for borrowed funds used during construction
|
|
559
|
|
|
25
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
614
|
|
||
Income before income taxes
|
|
51,400
|
|
|
8,497
|
|
|
6,186
|
|
|
—
|
|
|
(8,917
|
)
|
|
57,166
|
|
||
Income taxes
|
|
15,710
|
|
|
3,202
|
|
|
2,335
|
|
|
—
|
|
|
—
|
|
|
21,247
|
|
||
Net income
|
|
35,690
|
|
|
5,295
|
|
|
3,851
|
|
|
—
|
|
|
(8,917
|
)
|
|
35,919
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
134
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
229
|
|
||
Net income attributable to Hawaiian Electric
|
|
35,690
|
|
|
5,161
|
|
|
3,756
|
|
|
—
|
|
|
(8,917
|
)
|
|
35,690
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
||
Net income for common stock
|
|
$
|
35,420
|
|
|
5,161
|
|
|
3,756
|
|
|
—
|
|
|
(8,917
|
)
|
|
$
|
35,420
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income
for common stock
|
|
$
|
35,420
|
|
|
5,161
|
|
|
3,756
|
|
|
—
|
|
|
(8,917
|
)
|
|
$
|
35,420
|
|
Other comprehensive income, net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
|
|
2,519
|
|
|
344
|
|
|
253
|
|
|
—
|
|
|
(597
|
)
|
|
2,519
|
|
||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(2,510
|
)
|
|
(344
|
)
|
|
(253
|
)
|
|
—
|
|
|
597
|
|
|
(2,510
|
)
|
||
Other comprehensive income, net of taxes
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
35,429
|
|
|
5,161
|
|
|
3,756
|
|
|
—
|
|
|
(8,917
|
)
|
|
$
|
35,429
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consoli-
dating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Utility property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Land
|
|
$
|
43,542
|
|
|
5,464
|
|
|
3,016
|
|
|
—
|
|
|
—
|
|
|
$
|
52,022
|
|
Plant and equipment
|
|
3,826,826
|
|
|
1,182,567
|
|
|
1,057,130
|
|
|
—
|
|
|
—
|
|
|
6,066,523
|
|
||
Less accumulated depreciation
|
|
(1,256,950
|
)
|
|
(478,692
|
)
|
|
(453,448
|
)
|
|
—
|
|
|
—
|
|
|
(2,189,090
|
)
|
||
Construction in progress
|
|
135,984
|
|
|
14,947
|
|
|
13,920
|
|
|
—
|
|
|
—
|
|
|
164,851
|
|
||
Utility property, plant and equipment, net
|
|
2,749,402
|
|
|
724,286
|
|
|
620,618
|
|
|
—
|
|
|
—
|
|
|
4,094,306
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation
|
|
4,949
|
|
|
82
|
|
|
1,531
|
|
|
—
|
|
|
—
|
|
|
6,562
|
|
||
Total property, plant and equipment, net
|
|
2,754,351
|
|
|
724,368
|
|
|
622,149
|
|
|
—
|
|
|
—
|
|
|
4,100,868
|
|
||
Investment in wholly owned subsidiaries, at equity
|
|
540,032
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(540,032
|
)
|
|
—
|
|
||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
5,484
|
|
|
1,654
|
|
|
881
|
|
|
101
|
|
|
—
|
|
|
8,120
|
|
||
Advances to affiliates
|
|
12,600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,600
|
)
|
|
—
|
|
||
Customer accounts receivable, net
|
|
86,157
|
|
|
21,485
|
|
|
17,353
|
|
|
—
|
|
|
—
|
|
|
124,995
|
|
||
Accrued unbilled revenues, net
|
|
81,346
|
|
|
14,500
|
|
|
13,648
|
|
|
—
|
|
|
—
|
|
|
109,494
|
|
||
Other accounts receivable, net
|
|
13,582
|
|
|
1,571
|
|
|
3,285
|
|
|
—
|
|
|
(9,770
|
)
|
|
8,668
|
|
||
Fuel oil stock, at average cost
|
|
65,861
|
|
|
7,983
|
|
|
11,471
|
|
|
—
|
|
|
—
|
|
|
85,315
|
|
||
Materials and supplies, at average cost
|
|
34,269
|
|
|
6,589
|
|
|
17,749
|
|
|
—
|
|
|
—
|
|
|
58,607
|
|
||
Prepayments and other
|
|
31,970
|
|
|
230
|
|
|
12,534
|
|
|
—
|
|
|
(1,379
|
)
|
|
43,355
|
|
||
Regulatory assets
|
|
85,353
|
|
|
9,359
|
|
|
8,033
|
|
|
—
|
|
|
—
|
|
|
102,745
|
|
||
Total current assets
|
|
416,622
|
|
|
63,371
|
|
|
84,954
|
|
|
101
|
|
|
(23,749
|
)
|
|
541,299
|
|
||
Other long-term assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Regulatory assets
|
|
598,535
|
|
|
104,663
|
|
|
99,749
|
|
|
—
|
|
|
(103
|
)
|
|
802,844
|
|
||
Unamortized debt expense
|
|
5,621
|
|
|
1,396
|
|
|
1,199
|
|
|
—
|
|
|
—
|
|
|
8,216
|
|
||
Other
|
|
53,370
|
|
|
15,689
|
|
|
13,214
|
|
|
—
|
|
|
—
|
|
|
82,273
|
|
||
Total other long-term assets
|
|
657,526
|
|
|
121,748
|
|
|
114,162
|
|
|
—
|
|
|
(103
|
)
|
|
893,333
|
|
||
Total assets
|
|
$
|
4,368,531
|
|
|
909,487
|
|
|
821,265
|
|
|
101
|
|
|
(563,884
|
)
|
|
$
|
5,535,500
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock equity
|
|
$
|
1,686,434
|
|
|
283,129
|
|
|
256,802
|
|
|
101
|
|
|
(540,032
|
)
|
|
$
|
1,686,434
|
|
Cumulative preferred stock—not subject to mandatory redemption
|
|
22,293
|
|
|
7,000
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
830,546
|
|
|
190,000
|
|
|
186,000
|
|
|
—
|
|
|
—
|
|
|
1,206,546
|
|
||
Total capitalization
|
|
2,539,273
|
|
|
480,129
|
|
|
447,802
|
|
|
101
|
|
|
(540,032
|
)
|
|
2,927,273
|
|
||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Current portion of long-term debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Short-term borrowings from non-affiliates
|
|
30,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,000
|
|
||
Short-term borrowings from affiliate
|
|
—
|
|
|
10,000
|
|
|
2,600
|
|
|
—
|
|
|
(12,600
|
)
|
|
—
|
|
||
Accounts payable
|
|
106,975
|
|
|
14,988
|
|
|
16,546
|
|
|
—
|
|
|
—
|
|
|
138,509
|
|
||
Interest and preferred dividends payable
|
|
16,678
|
|
|
3,560
|
|
|
4,029
|
|
|
—
|
|
|
(10
|
)
|
|
24,257
|
|
||
Taxes accrued
|
|
126,742
|
|
|
30,060
|
|
|
27,449
|
|
|
—
|
|
|
(1,379
|
)
|
|
182,872
|
|
||
Regulatory liabilities
|
|
681
|
|
|
—
|
|
|
493
|
|
|
—
|
|
|
—
|
|
|
1,174
|
|
||
Other
|
|
49,389
|
|
|
10,126
|
|
|
16,234
|
|
|
—
|
|
|
(9,760
|
)
|
|
65,989
|
|
||
Total current liabilities
|
|
330,465
|
|
|
68,734
|
|
|
67,351
|
|
|
—
|
|
|
(23,749
|
)
|
|
442,801
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Deferred income taxes
|
|
423,151
|
|
|
89,923
|
|
|
83,910
|
|
|
—
|
|
|
—
|
|
|
596,984
|
|
||
Regulatory liabilities
|
|
240,749
|
|
|
79,504
|
|
|
30,388
|
|
|
—
|
|
|
(103
|
)
|
|
350,538
|
|
||
Unamortized tax credits
|
|
52,093
|
|
|
15,096
|
|
|
14,848
|
|
|
—
|
|
|
—
|
|
|
82,037
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
443,249
|
|
|
68,989
|
|
|
74,927
|
|
|
|
|
|
—
|
|
|
587,165
|
|
||
Other
|
|
48,044
|
|
|
12,664
|
|
|
13,609
|
|
|
—
|
|
|
—
|
|
|
74,317
|
|
||
Total deferred credits and other liabilities
|
|
1,207,286
|
|
|
266,176
|
|
|
217,682
|
|
|
—
|
|
|
(103
|
)
|
|
1,691,041
|
|
||
Contributions in aid of construction
|
|
291,507
|
|
|
94,448
|
|
|
88,430
|
|
|
—
|
|
|
—
|
|
|
474,385
|
|
||
Total capitalization and liabilities
|
|
$
|
4,368,531
|
|
|
909,487
|
|
|
821,265
|
|
|
101
|
|
|
(563,884
|
)
|
|
$
|
5,535,500
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consoli-
dating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Utility property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Land
|
|
$
|
43,819
|
|
|
5,464
|
|
|
3,016
|
|
|
—
|
|
|
—
|
|
|
$
|
52,299
|
|
Plant and equipment
|
|
3,782,438
|
|
|
1,179,032
|
|
|
1,048,012
|
|
|
—
|
|
|
—
|
|
|
6,009,482
|
|
||
Less accumulated depreciation
|
|
(1,253,866
|
)
|
|
(473,933
|
)
|
|
(447,711
|
)
|
|
—
|
|
|
—
|
|
|
(2,175,510
|
)
|
||
Construction in progress
|
|
134,376
|
|
|
12,421
|
|
|
11,819
|
|
|
—
|
|
|
—
|
|
|
158,616
|
|
||
Utility property, plant and equipment, net
|
|
2,706,767
|
|
|
722,984
|
|
|
615,136
|
|
|
—
|
|
|
—
|
|
|
4,044,887
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation
|
|
4,950
|
|
|
82
|
|
|
1,531
|
|
|
—
|
|
|
—
|
|
|
6,563
|
|
||
Total property, plant and equipment, net
|
|
2,711,717
|
|
|
723,066
|
|
|
616,667
|
|
|
—
|
|
|
—
|
|
|
4,051,450
|
|
||
Investment in wholly owned subsidiaries,
at equity
|
|
538,639
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(538,639
|
)
|
|
—
|
|
||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
12,416
|
|
|
612
|
|
|
633
|
|
|
101
|
|
|
—
|
|
|
13,762
|
|
||
Advances to affiliates
|
|
16,100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,100
|
)
|
|
—
|
|
||
Customer accounts receivable, net
|
|
111,462
|
|
|
24,222
|
|
|
22,800
|
|
|
—
|
|
|
—
|
|
|
158,484
|
|
||
Accrued unbilled revenues, net
|
|
103,072
|
|
|
15,926
|
|
|
18,376
|
|
|
—
|
|
|
—
|
|
|
137,374
|
|
||
Other accounts receivable, net
|
|
9,980
|
|
|
981
|
|
|
2,246
|
|
|
—
|
|
|
(8,924
|
)
|
|
4,283
|
|
||
Fuel oil stock, at average cost
|
|
74,515
|
|
|
13,800
|
|
|
17,731
|
|
|
—
|
|
|
—
|
|
|
106,046
|
|
||
Materials and supplies, at average cost
|
|
33,154
|
|
|
6,664
|
|
|
17,432
|
|
|
—
|
|
|
—
|
|
|
57,250
|
|
||
Prepayments and other
|
|
44,680
|
|
|
8,611
|
|
|
13,567
|
|
|
—
|
|
|
(475
|
)
|
|
66,383
|
|
||
Regulatory assets
|
|
58,550
|
|
|
6,745
|
|
|
6,126
|
|
|
—
|
|
|
—
|
|
|
71,421
|
|
||
Total current assets
|
|
463,929
|
|
|
77,561
|
|
|
98,911
|
|
|
101
|
|
|
(25,499
|
)
|
|
615,003
|
|
||
Other long-term assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Regulatory assets
|
|
623,784
|
|
|
107,454
|
|
|
102,788
|
|
|
—
|
|
|
(183
|
)
|
|
833,843
|
|
||
Unamortized debt expense
|
|
5,640
|
|
|
1,438
|
|
|
1,245
|
|
|
—
|
|
|
—
|
|
|
8,323
|
|
||
Other
|
|
53,106
|
|
|
15,366
|
|
|
13,366
|
|
|
—
|
|
|
—
|
|
|
81,838
|
|
||
Total other long-term assets
|
|
682,530
|
|
|
124,258
|
|
|
117,399
|
|
|
—
|
|
|
(183
|
)
|
|
924,004
|
|
||
Total assets
|
|
$
|
4,396,815
|
|
|
924,885
|
|
|
832,977
|
|
|
101
|
|
|
(564,321
|
)
|
|
$
|
5,590,457
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock equity
|
|
$
|
1,682,144
|
|
|
281,846
|
|
|
256,692
|
|
|
101
|
|
|
(538,639
|
)
|
|
$
|
1,682,144
|
|
Cumulative preferred stock—not subject to mandatory redemption
|
|
22,293
|
|
|
7,000
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
830,546
|
|
|
190,000
|
|
|
186,000
|
|
|
—
|
|
|
—
|
|
|
1,206,546
|
|
||
Total capitalization
|
|
2,534,983
|
|
|
478,846
|
|
|
447,692
|
|
|
101
|
|
|
(538,639
|
)
|
|
2,922,983
|
|
||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Short-term borrowings from affiliate
|
|
—
|
|
|
10,500
|
|
|
5,600
|
|
|
—
|
|
|
(16,100
|
)
|
|
—
|
|
||
Accounts payable
|
|
122,433
|
|
|
23,728
|
|
|
17,773
|
|
|
—
|
|
|
—
|
|
|
163,934
|
|
||
Interest and preferred dividends payable
|
|
15,407
|
|
|
3,989
|
|
|
2,931
|
|
|
—
|
|
|
(11
|
)
|
|
22,316
|
|
||
Taxes accrued
|
|
176,339
|
|
|
37,548
|
|
|
36,807
|
|
|
—
|
|
|
(292
|
)
|
|
250,402
|
|
||
Regulatory liabilities
|
|
191
|
|
|
—
|
|
|
441
|
|
|
—
|
|
|
—
|
|
|
632
|
|
||
Other
|
|
48,282
|
|
|
9,866
|
|
|
16,094
|
|
|
—
|
|
|
(9,096
|
)
|
|
65,146
|
|
||
Total current liabilities
|
|
362,652
|
|
|
85,631
|
|
|
79,646
|
|
|
—
|
|
|
(25,499
|
)
|
|
502,430
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Deferred income taxes
|
|
429,515
|
|
|
90,119
|
|
|
83,238
|
|
|
—
|
|
|
—
|
|
|
602,872
|
|
||
Regulatory liabilities
|
|
236,727
|
|
|
77,707
|
|
|
29,966
|
|
|
—
|
|
|
(183
|
)
|
|
344,217
|
|
||
Unamortized tax credits
|
|
49,865
|
|
|
14,902
|
|
|
14,725
|
|
|
—
|
|
|
—
|
|
|
79,492
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
446,888
|
|
|
72,547
|
|
|
75,960
|
|
|
—
|
|
|
—
|
|
|
595,395
|
|
||
Other
|
|
52,446
|
|
|
10,658
|
|
|
13,532
|
|
|
—
|
|
|
—
|
|
|
76,636
|
|
||
Total deferred credits and other liabilities
|
|
1,215,441
|
|
|
265,933
|
|
|
217,421
|
|
|
—
|
|
|
(183
|
)
|
|
1,698,612
|
|
||
Contributions in aid of construction
|
|
283,739
|
|
|
94,475
|
|
|
88,218
|
|
|
—
|
|
|
—
|
|
|
466,432
|
|
||
Total capitalization and liabilities
|
|
$
|
4,396,815
|
|
|
924,885
|
|
|
832,977
|
|
|
101
|
|
|
(564,321
|
)
|
|
$
|
5,590,457
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Balance, December 31, 2014
|
|
$
|
1,682,144
|
|
|
281,846
|
|
|
256,692
|
|
|
101
|
|
|
(538,639
|
)
|
|
$
|
1,682,144
|
|
Net income for common stock
|
|
26,874
|
|
|
3,788
|
|
|
3,904
|
|
|
—
|
|
|
(7,692
|
)
|
|
26,874
|
|
||
Other comprehensive income, net of taxes
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
||
Common stock dividends
|
|
(22,601
|
)
|
|
(2,505
|
)
|
|
(3,794
|
)
|
|
—
|
|
|
6,299
|
|
|
(22,601
|
)
|
||
Common stock issuance expenses
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||
Balance, March 31, 2015
|
|
$
|
1,686,434
|
|
|
283,129
|
|
|
256,802
|
|
|
101
|
|
|
(540,032
|
)
|
|
$
|
1,686,434
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Balance, December 31, 2013
|
|
$
|
1,593,564
|
|
|
274,802
|
|
|
248,771
|
|
|
101
|
|
|
(523,674
|
)
|
|
$
|
1,593,564
|
|
Net income for common stock
|
|
35,420
|
|
|
5,161
|
|
|
3,756
|
|
|
—
|
|
|
(8,917
|
)
|
|
35,420
|
|
||
Other comprehensive income, net of taxes
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||
Common stock dividends
|
|
(22,707
|
)
|
|
(2,941
|
)
|
|
(3,629
|
)
|
|
—
|
|
|
6,570
|
|
|
(22,707
|
)
|
||
Common stock issuance expenses
|
|
(3
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
(3
|
)
|
||
Balance, March 31, 2014
|
|
$
|
1,606,283
|
|
|
277,022
|
|
|
248,897
|
|
|
101
|
|
|
(526,020
|
)
|
|
$
|
1,606,283
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income
|
|
$
|
27,144
|
|
|
3,922
|
|
|
3,999
|
|
|
—
|
|
|
(7,692
|
)
|
|
$
|
27,373
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Equity in earnings of subsidiaries
|
|
(7,717
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,692
|
|
|
(25
|
)
|
||
Common stock dividends received from subsidiaries
|
|
6,324
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,299
|
)
|
|
25
|
|
||
Depreciation of property, plant and equipment
|
|
29,389
|
|
|
9,313
|
|
|
5,541
|
|
|
—
|
|
|
—
|
|
|
44,243
|
|
||
Other amortization
|
|
590
|
|
|
500
|
|
|
(401
|
)
|
|
—
|
|
|
—
|
|
|
689
|
|
||
Increase in deferred income taxes
|
|
12,048
|
|
|
719
|
|
|
2,365
|
|
|
—
|
|
|
—
|
|
|
15,132
|
|
||
Change in tax credits, net
|
|
2,246
|
|
|
200
|
|
|
130
|
|
|
—
|
|
|
—
|
|
|
2,576
|
|
||
Allowance for equity funds used during construction
|
|
(1,123
|
)
|
|
(145
|
)
|
|
(145
|
)
|
|
—
|
|
|
—
|
|
|
(1,413
|
)
|
||
Change in cash overdraft
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Increase in accounts receivable
|
|
21,703
|
|
|
2,147
|
|
|
4,408
|
|
|
—
|
|
|
846
|
|
|
29,104
|
|
||
Decrease in accrued unbilled revenues
|
|
21,726
|
|
|
1,426
|
|
|
4,728
|
|
|
—
|
|
|
—
|
|
|
27,880
|
|
||
Decrease in fuel oil stock
|
|
8,654
|
|
|
5,817
|
|
|
6,260
|
|
|
—
|
|
|
—
|
|
|
20,731
|
|
||
Decrease (increase) in materials and supplies
|
|
(1,115
|
)
|
|
75
|
|
|
(317
|
)
|
|
—
|
|
|
—
|
|
|
(1,357
|
)
|
||
Increase in regulatory assets
|
|
(8,903
|
)
|
|
(1,522
|
)
|
|
(402
|
)
|
|
—
|
|
|
—
|
|
|
(10,827
|
)
|
||
Decrease in accounts payable
|
|
(35,128
|
)
|
|
(9,892
|
)
|
|
(4,116
|
)
|
|
—
|
|
|
—
|
|
|
(49,136
|
)
|
||
Change in prepaid and accrued income and utility revenue taxes
|
|
(52,273
|
)
|
|
(1,807
|
)
|
|
(9,616
|
)
|
|
—
|
|
|
—
|
|
|
(63,696
|
)
|
||
Increase in defined benefit pension and other postretirement benefit plans liability
|
|
—
|
|
|
—
|
|
|
110
|
|
|
—
|
|
|
—
|
|
|
110
|
|
||
Change in other assets and liabilities
|
|
(8,439
|
)
|
|
229
|
|
|
534
|
|
|
—
|
|
|
(846
|
)
|
|
(8,522
|
)
|
||
Net cash provided by operating activities
|
|
15,126
|
|
|
10,982
|
|
|
13,078
|
|
|
—
|
|
|
(6,299
|
)
|
|
32,887
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(40,594
|
)
|
|
(7,558
|
)
|
|
(6,206
|
)
|
|
—
|
|
|
—
|
|
|
(54,358
|
)
|
||
Contributions in aid of construction
|
|
8,121
|
|
|
758
|
|
|
266
|
|
|
—
|
|
|
—
|
|
|
9,145
|
|
||
Advances from affiliates
|
|
3,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,500
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
|
(28,973
|
)
|
|
(6,800
|
)
|
|
(5,940
|
)
|
|
—
|
|
|
(3,500
|
)
|
|
(45,213
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock dividends
|
|
(22,601
|
)
|
|
(2,505
|
)
|
|
(3,794
|
)
|
|
—
|
|
|
6,299
|
|
|
(22,601
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(270
|
)
|
|
(134
|
)
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
(499
|
)
|
||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
30,000
|
|
|
(500
|
)
|
|
(3,000
|
)
|
|
—
|
|
|
3,500
|
|
|
30,000
|
|
||
Other
|
|
(214
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(216
|
)
|
||
Net cash provided by (used in) financing activities
|
|
6,915
|
|
|
(3,140
|
)
|
|
(6,890
|
)
|
|
—
|
|
|
9,799
|
|
|
6,684
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(6,932
|
)
|
|
1,042
|
|
|
248
|
|
|
—
|
|
|
—
|
|
|
(5,642
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
12,416
|
|
|
612
|
|
|
633
|
|
|
101
|
|
|
—
|
|
|
13,762
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
5,484
|
|
|
1,654
|
|
|
881
|
|
|
101
|
|
|
—
|
|
|
$
|
8,120
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income
|
|
$
|
35,690
|
|
|
5,295
|
|
|
3,851
|
|
|
—
|
|
|
(8,917
|
)
|
|
$
|
35,919
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Equity in earnings of subsidiaries
|
|
(8,942
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,917
|
|
|
(25
|
)
|
||
Common stock dividends received from subsidiaries
|
|
6,595
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,570
|
)
|
|
25
|
|
||
Depreciation of property, plant and equipment
|
|
27,301
|
|
|
8,975
|
|
|
5,327
|
|
|
—
|
|
|
—
|
|
|
41,603
|
|
||
Other amortization
|
|
235
|
|
|
501
|
|
|
885
|
|
|
—
|
|
|
—
|
|
|
1,621
|
|
||
Increase in deferred income taxes
|
|
17,123
|
|
|
862
|
|
|
2,359
|
|
|
—
|
|
|
—
|
|
|
20,344
|
|
||
Change in tax credits, net
|
|
1,741
|
|
|
217
|
|
|
74
|
|
|
—
|
|
|
—
|
|
|
2,032
|
|
||
Allowance for equity funds used during construction
|
|
(1,472
|
)
|
|
(65
|
)
|
|
(72
|
)
|
|
—
|
|
|
—
|
|
|
(1,609
|
)
|
||
Change in cash overdraft
|
|
—
|
|
|
—
|
|
|
(1,038
|
)
|
|
—
|
|
|
—
|
|
|
(1,038
|
)
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Decrease in accounts receivable
|
|
4,131
|
|
|
2,029
|
|
|
2,194
|
|
|
—
|
|
|
450
|
|
|
8,804
|
|
||
Decrease (increase) in accrued unbilled revenues
|
|
11,031
|
|
|
(230
|
)
|
|
1,459
|
|
|
—
|
|
|
—
|
|
|
12,260
|
|
||
Decrease (increase) in fuel oil stock
|
|
(35,060
|
)
|
|
1,166
|
|
|
(366
|
)
|
|
—
|
|
|
—
|
|
|
(34,260
|
)
|
||
Increase in materials and supplies
|
|
(330
|
)
|
|
(387
|
)
|
|
(328
|
)
|
|
—
|
|
|
—
|
|
|
(1,045
|
)
|
||
Increase in regulatory assets
|
|
(8,188
|
)
|
|
(881
|
)
|
|
(189
|
)
|
|
—
|
|
|
—
|
|
|
(9,258
|
)
|
||
Decrease in accounts payable
|
|
(837
|
)
|
|
(6,032
|
)
|
|
(9,155
|
)
|
|
—
|
|
|
—
|
|
|
(16,024
|
)
|
||
Change in prepaid and accrued income and utility revenue taxes
|
|
(39,581
|
)
|
|
(2,791
|
)
|
|
(5,154
|
)
|
|
—
|
|
|
—
|
|
|
(47,526
|
)
|
||
Decrease in defined benefit pension and other postretirement benefit plans liability
|
|
(103
|
)
|
|
—
|
|
|
(102
|
)
|
|
—
|
|
|
—
|
|
|
(205
|
)
|
||
Change in other assets and liabilities
|
|
(10,874
|
)
|
|
1,041
|
|
|
(698
|
)
|
|
—
|
|
|
(450
|
)
|
|
(10,981
|
)
|
||
Net cash provided by (used in) operating activities
|
|
(1,540
|
)
|
|
9,700
|
|
|
(953
|
)
|
|
—
|
|
|
(6,570
|
)
|
|
637
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(49,432
|
)
|
|
(7,530
|
)
|
|
(7,500
|
)
|
|
—
|
|
|
—
|
|
|
(64,462
|
)
|
||
Contributions in aid of construction
|
|
4,541
|
|
|
1,121
|
|
|
1,296
|
|
|
—
|
|
|
—
|
|
|
6,958
|
|
||
Advances from (to) affiliates
|
|
(12,661
|
)
|
|
900
|
|
|
—
|
|
|
—
|
|
|
11,761
|
|
|
—
|
|
||
Net cash used in investing activities
|
|
(57,552
|
)
|
|
(5,509
|
)
|
|
(6,204
|
)
|
|
—
|
|
|
11,761
|
|
|
(57,504
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common stock dividends
|
|
(22,707
|
)
|
|
(2,941
|
)
|
|
(3,629
|
)
|
|
—
|
|
|
6,570
|
|
|
(22,707
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(270
|
)
|
|
(134
|
)
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
(499
|
)
|
||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
34,096
|
|
|
—
|
|
|
12,661
|
|
|
—
|
|
|
(11,761
|
)
|
|
34,996
|
|
||
Other
|
|
(320
|
)
|
|
—
|
|
|
(69
|
)
|
|
—
|
|
|
—
|
|
|
(389
|
)
|
||
Net cash provided by (used in) financing activities
|
|
10,799
|
|
|
(3,075
|
)
|
|
8,868
|
|
|
—
|
|
|
(5,191
|
)
|
|
11,401
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(48,293
|
)
|
|
1,116
|
|
|
1,711
|
|
|
—
|
|
|
—
|
|
|
(45,466
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
61,245
|
|
|
1,326
|
|
|
153
|
|
|
101
|
|
|
—
|
|
|
62,825
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
12,952
|
|
|
2,442
|
|
|
1,864
|
|
|
101
|
|
|
—
|
|
|
$
|
17,359
|
|
|
|
Three months
ended March 31 |
||||||
(in thousands)
|
|
2015
|
|
2014
|
||||
Interest and dividend income
|
|
|
|
|
|
|
||
Interest and fees on loans
|
|
$
|
45,198
|
|
|
$
|
43,682
|
|
Interest and dividends on investment securities
|
|
3,051
|
|
|
3,035
|
|
||
Total interest and dividend income
|
|
48,249
|
|
|
46,717
|
|
||
Interest expense
|
|
|
|
|
|
|
||
Interest on deposit liabilities
|
|
1,260
|
|
|
1,225
|
|
||
Interest on other borrowings
|
|
1,466
|
|
|
1,405
|
|
||
Total interest expense
|
|
2,726
|
|
|
2,630
|
|
||
Net interest income
|
|
45,523
|
|
|
44,087
|
|
||
Provision for loan losses
|
|
614
|
|
|
995
|
|
||
Net interest income after provision for loan losses
|
|
44,909
|
|
|
43,092
|
|
||
Noninterest income
|
|
|
|
|
|
|
||
Fees from other financial services
|
|
5,355
|
|
|
5,128
|
|
||
Fee income on deposit liabilities
|
|
5,315
|
|
|
4,421
|
|
||
Fee income on other financial products
|
|
1,889
|
|
|
2,290
|
|
||
Bank-owned life insurance
|
|
983
|
|
|
963
|
|
||
Mortgage banking income
|
|
1,822
|
|
|
628
|
|
||
Gains on sale of investment securities
|
|
—
|
|
|
2,847
|
|
||
Other income, net
|
|
735
|
|
|
625
|
|
||
Total noninterest income
|
|
16,099
|
|
|
16,902
|
|
||
Noninterest expense
|
|
|
|
|
|
|
||
Compensation and employee benefits
|
|
21,766
|
|
|
20,286
|
|
||
Occupancy
|
|
4,113
|
|
|
3,953
|
|
||
Data processing
|
|
3,116
|
|
|
3,060
|
|
||
Services
|
|
2,341
|
|
|
2,273
|
|
||
Equipment
|
|
1,701
|
|
|
1,645
|
|
||
Office supplies, printing and postage
|
|
1,483
|
|
|
1,616
|
|
||
Marketing
|
|
841
|
|
|
711
|
|
||
FDIC insurance
|
|
811
|
|
|
796
|
|
||
Other expense
|
|
4,205
|
|
|
3,122
|
|
||
Total noninterest expense
|
|
40,377
|
|
|
37,462
|
|
||
Income before income taxes
|
|
20,631
|
|
|
22,532
|
|
||
Income taxes
|
|
7,156
|
|
|
8,133
|
|
||
Net income
|
|
$
|
13,475
|
|
|
$
|
14,399
|
|
|
|
Three months
ended March 31 |
||||||
(in thousands)
|
|
2015
|
|
2014
|
||||
Net income
|
|
$
|
13,475
|
|
|
$
|
14,399
|
|
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 tax benefits of $2,278 and $1,664 for the respective periods
|
|
3,451
|
|
|
2,520
|
|
||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of nil and $1,132 for the respective periods
|
|
—
|
|
|
(1,715
|
)
|
||
Retirement benefit plans:
|
|
|
|
|
|
|
||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $259 and $144 for the respective periods
|
|
392
|
|
|
219
|
|
||
Other comprehensive income, net of taxes
|
|
3,843
|
|
|
1,024
|
|
||
Comprehensive income
|
|
$
|
17,318
|
|
|
$
|
15,423
|
|
(in thousands)
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and due from banks
|
|
|
|
|
$
|
98,484
|
|
|
|
|
|
$
|
107,233
|
|
||
Interest-bearing deposits
|
|
|
|
172,517
|
|
|
|
|
54,230
|
|
||||||
Available-for-sale investment securities, at fair value
|
|
|
|
|
590,648
|
|
|
|
|
|
550,394
|
|
||||
Stock in Federal Home Loan Bank of Seattle, at cost
|
|
|
|
|
63,711
|
|
|
|
|
|
69,302
|
|
||||
Loans receivable held for investment
|
|
|
|
|
4,447,299
|
|
|
|
|
|
4,434,651
|
|
||||
Allowance for loan losses
|
|
|
|
|
(45,795
|
)
|
|
|
|
|
(45,618
|
)
|
||||
Net loans
|
|
|
|
|
4,401,504
|
|
|
|
|
|
4,389,033
|
|
||||
Loans held for sale, at lower of cost or fair value
|
|
|
|
|
9,906
|
|
|
|
|
|
8,424
|
|
||||
Other
|
|
|
|
|
305,917
|
|
|
|
|
|
305,416
|
|
||||
Goodwill
|
|
|
|
|
82,190
|
|
|
|
|
|
82,190
|
|
||||
Total assets
|
|
|
|
|
$
|
5,724,877
|
|
|
|
|
|
$
|
5,566,222
|
|
||
|
|
|
|
|
|
|
|
|
||||||||
Liabilities and shareholder’s equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposit liabilities—noninterest-bearing
|
|
|
|
|
$
|
1,420,085
|
|
|
|
|
|
$
|
1,342,794
|
|
||
Deposit liabilities—interest-bearing
|
|
|
|
|
3,331,243
|
|
|
|
|
|
3,280,621
|
|
||||
Other borrowings
|
|
|
|
|
312,094
|
|
|
|
|
|
290,656
|
|
||||
Other
|
|
|
|
|
117,849
|
|
|
|
|
|
118,363
|
|
||||
Total liabilities
|
|
|
|
|
5,181,271
|
|
|
|
|
|
5,032,434
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock
|
|
|
|
|
1
|
|
|
|
|
|
1
|
|
||||
Additional paid in capital
|
|
|
|
338,411
|
|
|
|
|
338,411
|
|
||||||
Retained earnings
|
|
|
|
|
217,909
|
|
|
|
|
|
211,934
|
|
||||
Accumulated other comprehensive loss, net of tax benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized gains on securities
|
|
$
|
3,913
|
|
|
|
|
|
$
|
462
|
|
|
|
|
||
Retirement benefit plans
|
|
(16,628
|
)
|
|
(12,715
|
)
|
|
(17,020
|
)
|
|
(16,558
|
)
|
||||
Total shareholder’s equity
|
|
|
|
|
543,606
|
|
|
|
|
|
533,788
|
|
||||
Total liabilities and shareholder’s equity
|
|
|
|
|
$
|
5,724,877
|
|
|
|
|
|
$
|
5,566,222
|
|
||
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bank-owned life insurance
|
|
|
|
|
$
|
135,141
|
|
|
|
|
|
$
|
134,115
|
|
||
Premises and equipment, net
|
|
|
|
|
85,174
|
|
|
|
|
|
92,407
|
|
||||
Prepaid expenses
|
|
|
|
|
4,892
|
|
|
|
|
|
3,196
|
|
||||
Accrued interest receivable
|
|
|
|
|
13,720
|
|
|
|
|
|
13,632
|
|
||||
Mortgage-servicing rights
|
|
|
|
|
11,965
|
|
|
|
|
|
11,540
|
|
||||
Low-income housing equity investments
|
|
|
|
32,140
|
|
|
|
|
33,438
|
|
||||||
Real estate acquired in settlement of loans, net
|
|
|
|
|
665
|
|
|
|
|
|
891
|
|
||||
Other
|
|
|
|
|
22,220
|
|
|
|
|
|
16,197
|
|
||||
|
|
|
|
|
$
|
305,917
|
|
|
|
|
|
$
|
305,416
|
|
||
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued expenses
|
|
|
|
|
$
|
29,670
|
|
|
|
|
|
$
|
37,880
|
|
||
Federal and state income taxes payable
|
|
|
|
|
36,010
|
|
|
|
|
|
28,642
|
|
||||
Cashier’s checks
|
|
|
|
|
24,686
|
|
|
|
|
|
20,509
|
|
||||
Advance payments by borrowers
|
|
|
|
|
5,904
|
|
|
|
|
|
9,652
|
|
||||
Other
|
|
|
|
|
21,579
|
|
|
|
|
|
21,680
|
|
||||
|
|
|
|
|
$
|
117,849
|
|
|
|
|
|
$
|
118,363
|
|
|
|
Amortized cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Estimated fair
value
|
|
|
|
Gross unrealized losses
|
||||||||||||||||||||||||||
|
|
|
|
|
|
Less than 12 months
|
|
12 months or longer
|
||||||||||||||||||||||||||||||
(dollar in thousands)
|
|
|
|
|
|
Number of issues
|
|
Fair
value
|
|
Amount
|
|
Number of issues
|
|
Fair
value
|
|
Amount
|
||||||||||||||||||||||
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury and federal agency obligations
|
|
$
|
138,593
|
|
|
$
|
2,029
|
|
|
$
|
(395
|
)
|
|
$
|
140,227
|
|
|
1
|
|
|
$
|
9,973
|
|
|
$
|
(2
|
)
|
|
3
|
|
|
$
|
19,198
|
|
|
$
|
(393
|
)
|
Mortgage-related securities- FNMA, FHLMC and GNMA
|
|
445,559
|
|
|
7,149
|
|
|
(2,287
|
)
|
|
450,421
|
|
|
6
|
|
|
40,889
|
|
|
(89
|
)
|
|
26
|
|
|
147,722
|
|
|
(2,198
|
)
|
||||||||
|
|
$
|
584,152
|
|
|
$
|
9,178
|
|
|
$
|
(2,682
|
)
|
|
$
|
590,648
|
|
|
7
|
|
|
$
|
50,862
|
|
|
$
|
(91
|
)
|
|
29
|
|
|
$
|
166,920
|
|
|
$
|
(2,591
|
)
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury and federal agency obligations
|
|
$
|
119,507
|
|
|
$
|
1,092
|
|
|
$
|
(1,039
|
)
|
|
$
|
119,560
|
|
|
6
|
|
|
$
|
41,970
|
|
|
$
|
(361
|
)
|
|
5
|
|
|
$
|
29,168
|
|
|
$
|
(678
|
)
|
Mortgage-related securities- FNMA, FHLMC and GNMA
|
|
430,120
|
|
|
5,653
|
|
|
(4,939
|
)
|
|
430,834
|
|
|
6
|
|
|
47,029
|
|
|
(164
|
)
|
|
29
|
|
|
172,623
|
|
|
(4,775
|
)
|
||||||||
|
|
$
|
549,627
|
|
|
$
|
6,745
|
|
|
$
|
(5,978
|
)
|
|
$
|
550,394
|
|
|
12
|
|
|
$
|
88,999
|
|
|
$
|
(525
|
)
|
|
34
|
|
|
$
|
201,791
|
|
|
$
|
(5,453
|
)
|
March 31, 2015
|
|
Amortized cost
|
|
Fair value
|
||||
(in thousands)
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
—
|
|
|
$
|
—
|
|
Due after one year through five years
|
|
29,958
|
|
|
30,296
|
|
||
Due after five years through ten years
|
|
71,811
|
|
|
73,188
|
|
||
Due after ten years
|
|
36,824
|
|
|
36,743
|
|
||
|
|
138,593
|
|
|
140,227
|
|
||
Mortgage-related securities-FNMA,FHLMC and GNMA
|
|
445,559
|
|
|
450,421
|
|
||
Total available-for-sale securities
|
|
$
|
584,152
|
|
|
$
|
590,648
|
|
(in thousands)
|
|
Residential
1-4 family
|
|
Commercial real
estate
|
|
Home
equity line of credit |
|
Residential land
|
|
Commercial construction
|
|
Residential construction
|
|
Commercial loans
|
|
Consumer loans
|
|
Unallocated
|
|
Total
|
||||||||||||||||||||
Three months ended
March 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
$
|
4,662
|
|
|
$
|
8,954
|
|
|
$
|
6,982
|
|
|
$
|
1,875
|
|
|
$
|
5,471
|
|
|
$
|
28
|
|
|
$
|
14,017
|
|
|
$
|
3,629
|
|
|
$
|
—
|
|
|
$
|
45,618
|
|
Charge-offs
|
|
(156
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
|
(942
|
)
|
|
—
|
|
|
(1,147
|
)
|
||||||||||
Recoveries
|
|
12
|
|
|
—
|
|
|
31
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
341
|
|
|
277
|
|
|
—
|
|
|
710
|
|
||||||||||
Provision
|
|
403
|
|
|
2,274
|
|
|
(487
|
)
|
|
362
|
|
|
(2,634
|
)
|
|
(7
|
)
|
|
268
|
|
|
435
|
|
|
—
|
|
|
614
|
|
||||||||||
Ending balance
|
|
$
|
4,921
|
|
|
$
|
11,228
|
|
|
$
|
6,523
|
|
|
$
|
2,286
|
|
|
$
|
2,837
|
|
|
$
|
21
|
|
|
$
|
14,580
|
|
|
$
|
3,399
|
|
|
$
|
—
|
|
|
$
|
45,795
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
1,429
|
|
|
$
|
1,785
|
|
|
$
|
144
|
|
|
$
|
1,085
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,096
|
|
|
$
|
9
|
|
|
|
|
$
|
5,548
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
3,492
|
|
|
$
|
9,443
|
|
|
$
|
6,379
|
|
|
$
|
1,201
|
|
|
$
|
2,837
|
|
|
$
|
21
|
|
|
$
|
13,484
|
|
|
$
|
3,390
|
|
|
$
|
—
|
|
|
$
|
40,247
|
|
Financing Receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance
|
|
$
|
2,039,099
|
|
|
$
|
561,189
|
|
|
$
|
814,265
|
|
|
$
|
18,155
|
|
|
$
|
77,164
|
|
|
$
|
20,804
|
|
|
$
|
803,545
|
|
|
$
|
119,310
|
|
|
|
|
$
|
4,453,531
|
|
||
Ending balance: individually evaluated for impairment
|
|
$
|
23,089
|
|
|
$
|
4,998
|
|
|
$
|
1,183
|
|
|
$
|
7,819
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,879
|
|
|
$
|
15
|
|
|
|
|
$
|
48,983
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
2,016,010
|
|
|
$
|
556,191
|
|
|
$
|
813,082
|
|
|
$
|
10,336
|
|
|
$
|
77,164
|
|
|
$
|
20,804
|
|
|
$
|
791,666
|
|
|
$
|
119,295
|
|
|
|
|
$
|
4,404,548
|
|
||
Three months ended
March 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
$
|
5,534
|
|
|
$
|
5,059
|
|
|
$
|
5,229
|
|
|
$
|
1,817
|
|
|
$
|
2,397
|
|
|
$
|
19
|
|
|
$
|
15,803
|
|
|
$
|
2,367
|
|
|
$
|
1,891
|
|
|
$
|
40,116
|
|
Charge-offs
|
|
(266
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(124
|
)
|
|
(561
|
)
|
|
—
|
|
|
(957
|
)
|
||||||||||
Recoveries
|
|
341
|
|
|
—
|
|
|
11
|
|
|
86
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
231
|
|
|
—
|
|
|
769
|
|
||||||||||
Provision
|
|
(134
|
)
|
|
656
|
|
|
729
|
|
|
(322
|
)
|
|
666
|
|
|
5
|
|
|
(187
|
)
|
|
279
|
|
|
(697
|
)
|
|
995
|
|
||||||||||
Ending balance
|
|
$
|
5,475
|
|
|
$
|
5,715
|
|
|
$
|
5,969
|
|
|
$
|
1,575
|
|
|
$
|
3,063
|
|
|
$
|
24
|
|
|
$
|
15,592
|
|
|
$
|
2,316
|
|
|
$
|
1,194
|
|
|
$
|
40,923
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
906
|
|
|
$
|
1,544
|
|
|
$
|
—
|
|
|
$
|
1,102
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,133
|
|
|
$
|
—
|
|
|
|
|
$
|
5,685
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
4,569
|
|
|
$
|
4,171
|
|
|
$
|
5,969
|
|
|
$
|
473
|
|
|
$
|
3,063
|
|
|
$
|
24
|
|
|
$
|
13,459
|
|
|
$
|
2,316
|
|
|
$
|
1,194
|
|
|
$
|
35,238
|
|
Financing Receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance
|
|
$
|
1,985,812
|
|
|
$
|
452,303
|
|
|
$
|
764,483
|
|
|
$
|
15,906
|
|
|
$
|
66,578
|
|
|
$
|
16,474
|
|
|
$
|
786,611
|
|
|
$
|
108,202
|
|
|
|
|
$
|
4,196,369
|
|
||
Ending balance: individually evaluated for impairment
|
|
$
|
20,141
|
|
|
$
|
4,558
|
|
|
$
|
1,164
|
|
|
$
|
10,351
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,399
|
|
|
$
|
18
|
|
|
|
|
$
|
55,631
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
1,965,671
|
|
|
$
|
447,745
|
|
|
$
|
763,319
|
|
|
$
|
5,555
|
|
|
$
|
66,578
|
|
|
$
|
16,474
|
|
|
$
|
767,212
|
|
|
$
|
108,184
|
|
|
|
|
$
|
4,140,738
|
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(in thousands)
|
|
Commercial
real estate
|
|
Commercial
construction
|
|
Commercial
|
|
Commercial
real estate
|
|
Commercial
construction
|
|
Commercial
|
||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pass
|
|
$
|
507,993
|
|
|
$
|
77,164
|
|
|
$
|
739,721
|
|
|
$
|
493,105
|
|
|
$
|
79,312
|
|
|
$
|
743,334
|
|
Special mention
|
|
5,203
|
|
|
—
|
|
|
31,863
|
|
|
5,209
|
|
|
—
|
|
|
16,095
|
|
||||||
Substandard
|
|
47,993
|
|
|
—
|
|
|
31,335
|
|
|
33,603
|
|
|
17,126
|
|
|
31,665
|
|
||||||
Doubtful
|
|
—
|
|
|
—
|
|
|
626
|
|
|
—
|
|
|
—
|
|
|
663
|
|
||||||
Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
561,189
|
|
|
$
|
77,164
|
|
|
$
|
803,545
|
|
|
$
|
531,917
|
|
|
$
|
96,438
|
|
|
$
|
791,757
|
|
(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
|
||||||||||||||
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
6,074
|
|
|
$
|
2,718
|
|
|
$
|
12,231
|
|
|
$
|
21,023
|
|
|
$
|
2,018,076
|
|
|
$
|
2,039,099
|
|
|
$
|
—
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
561,189
|
|
|
561,189
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
1,041
|
|
|
807
|
|
|
629
|
|
|
2,477
|
|
|
811,788
|
|
|
814,265
|
|
|
—
|
|
|||||||
Residential land
|
|
422
|
|
|
—
|
|
|
—
|
|
|
422
|
|
|
17,733
|
|
|
18,155
|
|
|
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77,164
|
|
|
77,164
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,804
|
|
|
20,804
|
|
|
—
|
|
|||||||
Commercial
|
|
680
|
|
|
238
|
|
|
532
|
|
|
1,450
|
|
|
802,095
|
|
|
803,545
|
|
|
—
|
|
|||||||
Consumer
|
|
895
|
|
|
270
|
|
|
266
|
|
|
1,431
|
|
|
117,879
|
|
|
119,310
|
|
|
—
|
|
|||||||
Total loans
|
|
$
|
9,112
|
|
|
$
|
4,033
|
|
|
$
|
13,658
|
|
|
$
|
26,803
|
|
|
$
|
4,426,728
|
|
|
$
|
4,453,531
|
|
|
$
|
—
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
6,124
|
|
|
$
|
1,732
|
|
|
$
|
12,632
|
|
|
$
|
20,488
|
|
|
$
|
2,023,717
|
|
|
$
|
2,044,205
|
|
|
$
|
—
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
531,917
|
|
|
531,917
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
1,341
|
|
|
501
|
|
|
194
|
|
|
2,036
|
|
|
816,779
|
|
|
818,815
|
|
|
—
|
|
|||||||
Residential land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,240
|
|
|
16,240
|
|
|
—
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96,438
|
|
|
96,438
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,961
|
|
|
18,961
|
|
|
—
|
|
|||||||
Commercial
|
|
699
|
|
|
145
|
|
|
569
|
|
|
1,413
|
|
|
790,344
|
|
|
791,757
|
|
|
—
|
|
|||||||
Consumer
|
|
829
|
|
|
333
|
|
|
403
|
|
|
1,565
|
|
|
121,091
|
|
|
122,656
|
|
|
—
|
|
|||||||
Total loans
|
|
$
|
8,993
|
|
|
$
|
2,711
|
|
|
$
|
13,798
|
|
|
$
|
25,502
|
|
|
$
|
4,415,487
|
|
|
$
|
4,440,989
|
|
|
$
|
—
|
|
(in thousands)
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Real estate:
|
|
|
|
|
|
|
||
Residential 1-4 family
|
|
$
|
18,205
|
|
|
$
|
19,253
|
|
Commercial real estate
|
|
4,998
|
|
|
5,112
|
|
||
Home equity line of credit
|
|
1,701
|
|
|
1,087
|
|
||
Residential land
|
|
717
|
|
|
720
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
9,018
|
|
|
10,053
|
|
||
Consumer
|
|
542
|
|
|
661
|
|
||
Total nonaccrual loans
|
|
$
|
35,181
|
|
|
$
|
36,886
|
|
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
|
|
$
|
14,334
|
|
|
$
|
13,525
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
||
Home equity line of credit
|
|
750
|
|
|
480
|
|
||
Residential land
|
|
7,102
|
|
|
7,130
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
2,720
|
|
|
2,972
|
|
||
Consumer
|
|
—
|
|
|
—
|
|
||
Total troubled debt restructured loans not included above
|
|
$
|
24,906
|
|
|
$
|
24,107
|
|
|
|
March 31, 2015
|
|
Three months ended
March 31, 2015 |
||||||||||||||||
(in thousands)
|
|
Recorded
investment
|
|
Unpaid
principal
balance
|
|
Related
Allowance
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
||||||||||
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
11,168
|
|
|
$
|
12,460
|
|
|
$
|
—
|
|
|
$
|
11,552
|
|
|
$
|
89
|
|
Commercial real estate
|
|
547
|
|
|
609
|
|
|
—
|
|
|
555
|
|
|
—
|
|
|||||
Home equity line of credit
|
|
339
|
|
|
544
|
|
|
—
|
|
|
400
|
|
|
1
|
|
|||||
Residential land
|
|
3,265
|
|
|
4,121
|
|
|
—
|
|
|
2,637
|
|
|
52
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
6,289
|
|
|
8,089
|
|
|
—
|
|
|
7,295
|
|
|
2
|
|
|||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
$
|
21,608
|
|
|
$
|
25,823
|
|
|
$
|
—
|
|
|
$
|
22,439
|
|
|
$
|
144
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
11,921
|
|
|
$
|
11,974
|
|
|
$
|
1,429
|
|
|
$
|
11,510
|
|
|
$
|
126
|
|
Commercial real estate
|
|
4,451
|
|
|
4,511
|
|
|
1,785
|
|
|
4,482
|
|
|
—
|
|
|||||
Home equity line of credit
|
|
844
|
|
|
900
|
|
|
144
|
|
|
626
|
|
|
6
|
|
|||||
Residential land
|
|
4,554
|
|
|
4,632
|
|
|
1,085
|
|
|
5,189
|
|
|
83
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
5,590
|
|
|
7,549
|
|
|
1,096
|
|
|
4,982
|
|
|
50
|
|
|||||
Consumer
|
|
15
|
|
|
15
|
|
|
9
|
|
|
15
|
|
|
—
|
|
|||||
|
|
$
|
27,375
|
|
|
$
|
29,581
|
|
|
$
|
5,548
|
|
|
$
|
26,804
|
|
|
$
|
265
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
23,089
|
|
|
$
|
24,434
|
|
|
$
|
1,429
|
|
|
$
|
23,062
|
|
|
$
|
215
|
|
Commercial real estate
|
|
4,998
|
|
|
5,120
|
|
|
1,785
|
|
|
5,037
|
|
|
—
|
|
|||||
Home equity line of credit
|
|
1,183
|
|
|
1,444
|
|
|
144
|
|
|
1,026
|
|
|
7
|
|
|||||
Residential land
|
|
7,819
|
|
|
8,753
|
|
|
1,085
|
|
|
7,826
|
|
|
135
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
11,879
|
|
|
15,638
|
|
|
1,096
|
|
|
12,277
|
|
|
52
|
|
|||||
Consumer
|
|
15
|
|
|
15
|
|
|
9
|
|
|
15
|
|
|
—
|
|
|||||
|
|
$
|
48,983
|
|
|
$
|
55,404
|
|
|
$
|
5,548
|
|
|
$
|
49,243
|
|
|
$
|
409
|
|
|
|
December 31, 2014
|
|
Year ended December 31, 2014
|
||||||||||||||||
(in thousands)
|
|
Recorded
investment
|
|
Unpaid
principal
balance
|
|
Related
allowance
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
||||||||||
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
11,654
|
|
|
$
|
12,987
|
|
|
$
|
—
|
|
|
$
|
9,056
|
|
|
$
|
227
|
|
Commercial real estate
|
|
571
|
|
|
626
|
|
|
—
|
|
|
194
|
|
|
—
|
|
|||||
Home equity line of credit
|
|
363
|
|
|
606
|
|
|
—
|
|
|
402
|
|
|
5
|
|
|||||
Residential land
|
|
2,344
|
|
|
3,200
|
|
|
—
|
|
|
2,728
|
|
|
172
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
8,235
|
|
|
11,471
|
|
|
—
|
|
|
5,204
|
|
|
38
|
|
|||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|||||
|
|
$
|
23,167
|
|
|
$
|
28,890
|
|
|
$
|
—
|
|
|
$
|
17,592
|
|
|
$
|
442
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
11,327
|
|
|
$
|
11,347
|
|
|
$
|
951
|
|
|
$
|
8,822
|
|
|
$
|
419
|
|
Commercial real estate
|
|
4,541
|
|
|
4,541
|
|
|
1,845
|
|
|
3,415
|
|
|
478
|
|
|||||
Home equity line of credit
|
|
416
|
|
|
420
|
|
|
46
|
|
|
132
|
|
|
6
|
|
|||||
Residential land
|
|
5,506
|
|
|
5,584
|
|
|
1,057
|
|
|
6,415
|
|
|
484
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
4,873
|
|
|
5,211
|
|
|
760
|
|
|
12,089
|
|
|
438
|
|
|||||
Consumer
|
|
16
|
|
|
16
|
|
|
6
|
|
|
9
|
|
|
—
|
|
|||||
|
|
$
|
26,679
|
|
|
$
|
27,119
|
|
|
$
|
4,665
|
|
|
$
|
30,882
|
|
|
$
|
1,825
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
22,981
|
|
|
$
|
24,334
|
|
|
$
|
951
|
|
|
$
|
17,878
|
|
|
$
|
646
|
|
Commercial real estate
|
|
5,112
|
|
|
5,167
|
|
|
1,845
|
|
|
3,609
|
|
|
478
|
|
|||||
Home equity line of credit
|
|
779
|
|
|
1,026
|
|
|
46
|
|
|
534
|
|
|
11
|
|
|||||
Residential land
|
|
7,850
|
|
|
8,784
|
|
|
1,057
|
|
|
9,143
|
|
|
656
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
13,108
|
|
|
16,682
|
|
|
760
|
|
|
17,293
|
|
|
476
|
|
|||||
Consumer
|
|
16
|
|
|
16
|
|
|
6
|
|
|
17
|
|
|
—
|
|
|||||
|
|
$
|
49,846
|
|
|
$
|
56,009
|
|
|
$
|
4,665
|
|
|
$
|
48,474
|
|
|
$
|
2,267
|
|
*
|
Since loan was classified as impaired.
|
|
|
Three months ended March 31, 2015
|
||||||||||||
|
|
Number of
|
|
Outstanding recorded investment
|
|
Net increase in ALL
|
||||||||
(dollars in thousands)
|
|
contracts
|
|
Pre-modification
|
|
Post-modification
|
|
(as of period end)
|
||||||
Troubled debt restructurings
|
|
|
|
|
|
|
|
|
|
|
||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
||||
Residential 1-4 family
|
|
5
|
|
$
|
877
|
|
|
$
|
895
|
|
|
$
|
47
|
|
Commercial real estate
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Home equity line of credit
|
|
9
|
|
429
|
|
|
429
|
|
|
55
|
|
|||
Residential land
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial construction
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential construction
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial
|
|
1
|
|
92
|
|
|
92
|
|
|
—
|
|
|||
Consumer
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
15
|
|
$
|
1,398
|
|
|
$
|
1,416
|
|
|
$
|
102
|
|
|
|
Three months ended March 31, 2014
|
||||||||||||
|
|
Number of
|
|
Outstanding recorded investment
|
|
Net increase in ALL
|
||||||||
(dollars in thousands)
|
|
contracts
|
|
Pre-modification
|
|
Post-modification
|
|
(as of period end)
|
||||||
Troubled debt restructurings
|
|
|
|
|
|
|
|
|
|
|
||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
||||
Residential 1-4 family
|
|
5
|
|
$
|
921
|
|
|
$
|
935
|
|
|
$
|
44
|
|
Commercial real estate
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Home equity line of credit
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential land
|
|
7
|
|
1,133
|
|
|
1,133
|
|
|
175
|
|
|||
Commercial construction
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential construction
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial
|
|
3
|
|
473
|
|
|
473
|
|
|
14
|
|
|||
Consumer
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
15
|
|
$
|
2,527
|
|
|
$
|
2,541
|
|
|
$
|
233
|
|
(in thousands)
|
|
Gross
carrying amount |
|
Accumulated amortization
|
|
Valuation allowance
|
|
Net
carrying amount |
||||||||
March 31, 2015
|
|
$
|
28,090
|
|
|
$
|
(16,084
|
)
|
|
$
|
(41
|
)
|
|
$
|
11,965
|
|
March 31, 2014
|
|
26,097
|
|
|
(14,138
|
)
|
|
(202
|
)
|
|
11,757
|
|
(in thousands)
|
2015
|
|
|
2014
|
|
||
Mortgage servicing rights
|
|
|
|
||||
Balance, January 1
|
$
|
11,749
|
|
|
$
|
11,938
|
|
Amount capitalized
|
906
|
|
|
467
|
|
||
Amortization
|
(647
|
)
|
|
(432
|
)
|
||
Other-than-temporary impairment
|
(2
|
)
|
|
(14
|
)
|
||
Carrying amount before valuation allowance, March 31
|
12,006
|
|
|
11,959
|
|
||
Valuation allowance for mortgage servicing rights
|
|
|
|
||||
Balance, January 1
|
209
|
|
|
251
|
|
||
Provision (recovery)
|
(166
|
)
|
|
(35
|
)
|
||
Other-than-temporary impairment
|
(2
|
)
|
|
(14
|
)
|
||
Balance, March 31
|
41
|
|
|
202
|
|
||
Net carrying value of mortgage servicing rights
|
$
|
11,965
|
|
|
$
|
11,757
|
|
(dollars in thousands)
|
|
March 31, 2015
|
|
|
December 31, 2014
|
|
||
Unpaid principal balance
|
|
$
|
1,414,990
|
|
|
$
|
1,391,030
|
|
Weighted average note rate
|
|
4.06
|
%
|
|
4.07
|
%
|
||
Weighted average discount rate
|
|
9.6
|
%
|
|
9.6
|
%
|
||
Weighted average prepayment speed
|
|
10.6
|
%
|
|
9.5
|
%
|
(dollars in thousands)
|
|
March 31, 2015
|
|
|
December 31, 2014
|
|
||
Prepayment rate:
|
|
|
|
|
||||
25 basis points adverse rate change
|
|
$
|
(750
|
)
|
|
$
|
(757
|
)
|
50 basis points adverse change
|
|
(1,408
|
)
|
|
(1,524
|
)
|
||
Discount rate:
|
|
|
|
|
||||
25 basis points adverse change
|
|
(129
|
)
|
|
(140
|
)
|
||
50 basis points adverse rate change
|
|
(256
|
)
|
|
(278
|
)
|
(in millions)
|
|
Gross amount of
recognized liabilities
|
|
Gross amount offset in
the Balance Sheet
|
|
Net amount of liabilities presented
in the Balance Sheet
|
Repurchase agreements
|
|
|
|
|
|
|
March 31, 2015
|
|
$212
|
|
$—
|
|
$212
|
December 31, 2014
|
|
191
|
|
—
|
|
191
|
|
|
Gross amount not offset in the Balance Sheet
|
||||||||||||||
(in millions)
|
|
Net amount of
liabilities presented
in the Balance Sheet
|
|
Financial
instruments
|
|
Cash
collateral
pledged
|
|
Net amount
|
||||||||
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial institution
|
|
$
|
50
|
|
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Government entities
|
|
56
|
|
|
56
|
|
|
—
|
|
|
—
|
|
||||
Commercial account holders
|
|
106
|
|
|
106
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
212
|
|
|
$
|
212
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial institution
|
|
$
|
50
|
|
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Government entities
|
|
56
|
|
|
56
|
|
|
—
|
|
|
—
|
|
||||
Commercial account holders
|
|
85
|
|
|
85
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
191
|
|
|
$
|
191
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||
(in thousands)
|
|
Notional amount
|
|
Fair value
|
|
Notional amount
|
|
Fair value
|
||||||||
Interest rate lock commitments
|
|
$
|
50,301
|
|
|
$
|
835
|
|
|
$
|
29,330
|
|
|
$
|
390
|
|
Forward commitments
|
|
46,489
|
|
|
(265
|
)
|
|
32,833
|
|
|
(106
|
)
|
Derivative Financial Instruments Not Designated as Hedging Instruments
1
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||
(in thousands)
|
|
Asset derivatives
|
|
Liability
derivatives
|
|
Asset derivatives
|
|
Liability
derivatives |
||||||||
Interest rate lock commitments
|
|
$
|
836
|
|
|
$
|
1
|
|
|
$
|
393
|
|
|
$
|
3
|
|
Forward commitments
|
|
15
|
|
|
280
|
|
|
5
|
|
|
111
|
|
||||
|
|
$
|
851
|
|
|
$
|
281
|
|
|
$
|
398
|
|
|
$
|
114
|
|
Derivative Financial Instruments Not Designated as Hedging Instruments
|
Location of net gains (losses) recognized in
the Statement of Income
|
|
Three months
ended March 31 |
||||||
(in thousands)
|
|
2015
|
|
2014
|
|||||
Interest rate lock commitments
|
Mortgage banking income
|
|
$
|
445
|
|
|
$
|
(270
|
)
|
Forward commitments
|
Mortgage banking income
|
|
(159
|
)
|
|
(106
|
)
|
||
|
|
|
$
|
286
|
|
|
$
|
(376
|
)
|
|
|
Three months ended March 31
|
||||||||||||||
|
|
Pension benefits
|
|
Other benefits
|
||||||||||||
(in thousands)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
||||||||
Service cost
|
|
$
|
16,466
|
|
|
$
|
12,127
|
|
|
$
|
869
|
|
|
$
|
883
|
|
Interest cost
|
|
19,139
|
|
|
18,001
|
|
|
2,235
|
|
|
2,160
|
|
||||
Expected return on plan assets
|
|
(22,151
|
)
|
|
(20,347
|
)
|
|
(2,907
|
)
|
|
(2,708
|
)
|
||||
Amortization of net prior service loss (gain)
|
|
1
|
|
|
22
|
|
|
(448
|
)
|
|
(448
|
)
|
||||
Amortization of net actuarial loss (gain)
|
|
8,962
|
|
|
5,038
|
|
|
430
|
|
|
(3
|
)
|
||||
Net periodic benefit cost (credit)
|
|
22,417
|
|
|
14,841
|
|
|
179
|
|
|
(116
|
)
|
||||
Impact of PUC D&Os
|
|
(9,513
|
)
|
|
(3,011
|
)
|
|
98
|
|
|
445
|
|
||||
Net periodic benefit cost (adjusted for impact of PUC D&Os)
|
|
$
|
12,904
|
|
|
$
|
11,830
|
|
|
$
|
277
|
|
|
$
|
329
|
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
||||||||
Service cost
|
|
$
|
15,983
|
|
|
$
|
11,697
|
|
|
$
|
855
|
|
|
$
|
856
|
|
Interest cost
|
|
17,516
|
|
|
16,436
|
|
|
2,159
|
|
|
2,079
|
|
||||
Expected return on plan assets
|
|
(20,632
|
)
|
|
(18,171
|
)
|
|
(2,859
|
)
|
|
(2,663
|
)
|
||||
Amortization of net prior service loss (gain)
|
|
10
|
|
|
15
|
|
|
(451
|
)
|
|
(451
|
)
|
||||
Amortization of net actuarial loss
|
|
8,094
|
|
|
4,560
|
|
|
422
|
|
|
—
|
|
||||
Net periodic benefit cost (credit)
|
|
20,971
|
|
|
14,537
|
|
|
126
|
|
|
(179
|
)
|
||||
Impact of PUC D&Os
|
|
(9,513
|
)
|
|
(3,011
|
)
|
|
98
|
|
|
445
|
|
||||
Net periodic benefit cost (adjusted for impact of PUC D&Os)
|
|
$
|
11,458
|
|
|
$
|
11,526
|
|
|
$
|
224
|
|
|
$
|
266
|
|
|
|
Three months ended March 31
|
||||||
(in millions)
|
|
2015
|
|
2014
|
||||
HEI consolidated
|
|
|
|
|
||||
Share-based compensation expense
1
|
|
$
|
1.8
|
|
|
$
|
2.4
|
|
Income tax benefit
|
|
0.6
|
|
|
0.8
|
|
||
Hawaiian Electric consolidated
|
|
|
|
|
||||
Share-based compensation expense
1
|
|
0.5
|
|
|
0.7
|
|
||
Income tax benefit
|
|
0.2
|
|
|
0.3
|
|
1
|
$0.04 million
and
$0.04 million
of this share-based compensation expense was capitalized in the
three
months ended
March 31, 2015
and
2014
, respectively.
|
|
Three months ended March 31
|
||||
(dollars in thousands, except prices)
|
2015
|
|
2014
|
||
Shares underlying SARS exercised
|
80,000
|
|
|
-
|
|
Weighted-average price of shares exercised
|
$
|
26.18
|
|
|
-
|
Intrinsic value of shares exercised
1
|
502
|
|
|
-
|
|
Tax benefit realized for the deduction of exercises
|
162
|
|
|
-
|
|
Three months ended March 31
|
||||||||||||||
|
2015
|
|
2014
|
||||||||||||
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||
Outstanding, beginning of period
|
261,235
|
|
|
$
|
25.77
|
|
|
288,151
|
|
|
$
|
25.17
|
|
||
Granted
|
84,294
|
|
|
33.74
|
|
|
115,036
|
|
|
25.19
|
|
||||
Vested
|
(79,219
|
)
|
|
25.77
|
|
|
(71,029
|
)
|
|
25.79
|
|
||||
Forfeited
|
(4,619
|
)
|
|
25.83
|
|
|
—
|
|
|
—
|
|
||||
Outstanding, end of period
|
261,691
|
|
|
$
|
28.33
|
|
|
332,158
|
|
|
$
|
25.04
|
|
||
Total weighted-average grant-date fair value of shares granted ($ millions)
|
$
|
2.8
|
|
|
|
|
$
|
2.9
|
|
|
|
(1)
|
Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.
|
|
Three months ended March 31
|
||||||||||||||
|
2015
|
|
2014
|
||||||||||||
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||
Outstanding, beginning of period
|
257,956
|
|
|
$
|
28.45
|
|
|
232,127
|
|
|
$
|
32.88
|
|
||
Granted (target level)
|
—
|
|
|
—
|
|
|
96,793
|
|
|
22.95
|
|
||||
Vested (issued or unissued and cancelled)
|
(75,915
|
)
|
|
30.71
|
|
|
(70,189
|
)
|
|
35.46
|
|
||||
Forfeited
|
(13,264
|
)
|
|
26.00
|
|
|
(488
|
)
|
|
32.13
|
|
||||
Outstanding, end of period
|
168,777
|
|
|
$
|
27.63
|
|
|
258,243
|
|
|
$
|
28.46
|
|
||
Total weighted-average grant-date fair value of shares granted ($ millions)
|
$
|
—
|
|
|
|
|
$
|
2.2
|
|
|
|
(1)
|
Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.
|
|
2014
|
||
Risk-free interest rate
|
0.66
|
%
|
|
Expected life in years
|
3
|
|
|
Expected volatility
|
17.8
|
%
|
|
Range of expected volatility for Peer Group
|
12.4% to 23.3%
|
|
|
Grant date fair value (per share)
|
$
|
22.95
|
|
|
Three months ended March 31
|
||||||||||||||
|
2015
|
|
2014
|
||||||||||||
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||
Outstanding, beginning of period
|
364,731
|
|
|
$
|
26.01
|
|
|
296,843
|
|
|
$
|
26.14
|
|
||
Granted (target level)
|
—
|
|
|
—
|
|
|
128,873
|
|
|
25.19
|
|
||||
Vested (issued)
|
(121,249
|
)
|
|
26.05
|
|
|
(65,089
|
)
|
|
24.95
|
|
||||
Forfeited
|
(13,263
|
)
|
|
25.72
|
|
|
(557
|
)
|
|
26.55
|
|
||||
Outstanding, end of period
|
230,219
|
|
|
$
|
26.00
|
|
|
360,070
|
|
|
$
|
26.01
|
|
||
Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions)
|
$
|
—
|
|
|
|
|
$
|
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.
|
Three months ended March 31, 2014
|
|
Basic and diluted
|
||
Distributed earnings
|
|
$
|
0.31
|
|
Undistributed earnings
|
|
0.14
|
|
|
|
|
$
|
0.45
|
|
|
HEI Consolidated
|
|
Hawaiian Electric Consolidated
|
||||||||||||||||
(in thousands)
|
Net unrealized gains (losses) on securities
|
|
Unrealized losses on derivatives
|
|
Retirement benefit plans
|
|
AOCI
|
|
AOCI -retirement benefit plans
|
||||||||||
Balance, December 31, 2014
|
$
|
462
|
|
|
$
|
(289
|
)
|
|
$
|
(27,551
|
)
|
|
$
|
(27,378
|
)
|
|
$
|
45
|
|
Current period other comprehensive income
|
3,451
|
|
|
59
|
|
|
548
|
|
|
4,058
|
|
|
22
|
|
|||||
Balance, March 31, 2015
|
$
|
3,913
|
|
|
$
|
(230
|
)
|
|
$
|
(27,003
|
)
|
|
$
|
(23,320
|
)
|
|
$
|
67
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, December 31, 2013
|
$
|
(3,663
|
)
|
|
$
|
(525
|
)
|
|
$
|
(12,562
|
)
|
|
$
|
(16,750
|
)
|
|
$
|
608
|
|
Current period other comprehensive income
|
805
|
|
|
59
|
|
|
303
|
|
|
1,167
|
|
|
9
|
|
|||||
Balance, March 31, 2014
|
$
|
(2,858
|
)
|
|
$
|
(466
|
)
|
|
$
|
(12,259
|
)
|
|
$
|
(15,583
|
)
|
|
$
|
617
|
|
|
|
Amount reclassified from AOCI
|
|
|
||||||
|
|
Three months ended March 31
|
|
|
||||||
(in thousands)
|
|
2015
|
|
2014
|
|
Affected line item in the Statement of Income
|
||||
HEI consolidated
|
|
|
|
|
|
|
||||
Net realized gains on securities
|
|
$
|
3,451
|
|
|
$
|
(1,715
|
)
|
|
Revenues-bank (net gains on sales of securities)
|
Derivatives qualified as cash flow hedges
|
|
|
|
|
|
|
|
|
||
Interest rate contracts (settled in 2011)
|
|
59
|
|
|
59
|
|
|
Interest expense
|
||
Retirement benefit plan items
|
|
|
|
|
|
|
|
|
||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost
|
|
5,459
|
|
|
2,813
|
|
|
See Note 6 for additional details
|
||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets
|
|
(4,911
|
)
|
|
(2,510
|
)
|
|
See Note 6 for additional details
|
||
Total reclassifications
|
|
$
|
4,058
|
|
|
$
|
(1,353
|
)
|
|
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
||||
Retirement benefit plan items
|
|
|
|
|
|
|
|
|||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost
|
|
$
|
4,933
|
|
|
$
|
2,519
|
|
|
See Note 6 for additional details
|
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets
|
|
(4,911
|
)
|
|
(2,510
|
)
|
|
See Note 6 for additional details
|
||
Total reclassifications
|
|
$
|
22
|
|
|
$
|
9
|
|
|
|
|
|
|
|
Estimated fair value
|
||||||||||||||||
|
|
Carrying 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
|
|||||||||||
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Money market funds
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
10
|
|
Available-for-sale investment securities
|
|
590,648
|
|
|
—
|
|
|
590,648
|
|
|
—
|
|
|
590,648
|
|
|||||
Stock in Federal Home Loan Bank of Seattle
|
|
63,711
|
|
|
—
|
|
|
63,711
|
|
|
—
|
|
|
63,711
|
|
|||||
Loans receivable, net
|
|
4,411,410
|
|
|
—
|
|
|
—
|
|
|
4,616,814
|
|
|
4,616,814
|
|
|||||
Derivative assets
|
|
851
|
|
|
—
|
|
|
851
|
|
|
—
|
|
|
851
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposit liabilities
|
|
4,751,328
|
|
|
—
|
|
|
4,752,331
|
|
|
—
|
|
|
4,752,331
|
|
|||||
Short-term borrowings—other than bank
|
|
30,500
|
|
|
—
|
|
|
30,500
|
|
|
—
|
|
|
30,500
|
|
|||||
The Utilities’ short-term borrowings (included in amount above)
|
|
30,000
|
|
|
—
|
|
|
30,000
|
|
|
—
|
|
|
30,000
|
|
|||||
Other bank borrowings
|
|
312,094
|
|
|
—
|
|
|
320,329
|
|
|
—
|
|
|
320,329
|
|
|||||
Long-term debt, net—other than bank
|
|
1,506,546
|
|
|
—
|
|
|
1,645,545
|
|
|
—
|
|
|
1,645,545
|
|
|||||
The Utilities’ long-term debt, net (included in amount above)
|
|
1,206,546
|
|
|
—
|
|
|
1,336,267
|
|
|
—
|
|
|
1,336,267
|
|
|||||
Derivative liabilities
|
|
281
|
|
|
249
|
|
|
32
|
|
|
—
|
|
|
281
|
|
|||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Money market funds
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
10
|
|
Available-for-sale investment securities
|
|
550,394
|
|
|
—
|
|
|
550,394
|
|
|
—
|
|
|
550,394
|
|
|||||
Stock in Federal Home Loan Bank of Seattle
|
|
69,302
|
|
|
—
|
|
|
69,302
|
|
|
—
|
|
|
69,302
|
|
|||||
Loans receivable, net
|
|
4,397,457
|
|
|
—
|
|
|
—
|
|
|
4,578,822
|
|
|
4,578,822
|
|
|||||
Derivative assets
|
|
398
|
|
|
—
|
|
|
398
|
|
|
—
|
|
|
398
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposit liabilities
|
|
4,623,415
|
|
|
—
|
|
|
4,623,773
|
|
|
—
|
|
|
4,623,773
|
|
|||||
Short-term borrowings—other than bank
|
|
118,972
|
|
|
—
|
|
|
118,972
|
|
|
—
|
|
|
118,972
|
|
|||||
Other bank borrowings
|
|
290,656
|
|
|
—
|
|
|
298,837
|
|
|
—
|
|
|
298,837
|
|
|||||
Long-term debt, net—other than bank
|
|
1,506,546
|
|
|
—
|
|
|
1,622,736
|
|
|
—
|
|
|
1,622,736
|
|
|||||
The Utilities’ long-term debt, net (included in amount above)
|
|
1,206,546
|
|
|
—
|
|
|
1,313,893
|
|
|
—
|
|
|
1,313,893
|
|
|||||
Derivative liabilities
|
|
114
|
|
|
71
|
|
|
43
|
|
|
—
|
|
|
114
|
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
|
Fair value measurements using
|
|
Fair value measurements using
|
||||||||||||||||||||
(in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Money market funds (“other” segment)
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
—
|
|
Available-for-sale investment securities (bank segment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Mortgage-related securities-FNMA, FHLMC and GNMA
|
|
$
|
—
|
|
|
$
|
450,421
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
430,834
|
|
|
$
|
—
|
|
U.S. Treasury and federal agency obligations
|
|
—
|
|
|
140,227
|
|
|
—
|
|
|
—
|
|
|
119,560
|
|
|
—
|
|
||||||
|
|
$
|
—
|
|
|
$
|
590,648
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
550,394
|
|
|
$
|
—
|
|
Derivative assets
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate lock commitments
|
|
$
|
—
|
|
|
$
|
836
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
393
|
|
|
$
|
—
|
|
Forward commitments
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||||
|
|
$
|
—
|
|
|
$
|
851
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
398
|
|
|
$
|
—
|
|
Derivative liabilities
1
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate lock commitments
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
Forward commitments
|
|
249
|
|
|
31
|
|
|
—
|
|
|
71
|
|
|
40
|
|
|
—
|
|
||||||
|
|
$
|
249
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
71
|
|
|
$
|
43
|
|
|
$
|
—
|
|
|
|
|
|
Fair value measurements
|
||||||||||||
(in thousands)
|
|
Balance
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
March 31, 2015
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
$
|
2,494
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,494
|
|
Real estate acquired in settlement of loans
|
|
665
|
|
|
—
|
|
|
—
|
|
|
665
|
|
||||
December 31, 2014
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
2,445
|
|
|
—
|
|
|
—
|
|
|
2,445
|
|
||||
Real estate acquired in settlement of loans
|
|
288
|
|
|
—
|
|
|
—
|
|
|
288
|
|
|
|
|
|
|
|
|
|
Significant unobservable
input value
1
|
||||
($ in thousands)
|
|
Fair value
|
|
Valuation technique
|
|
Significant unobservable input
|
|
Range
|
|
Weighted
Average
|
||
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
||
Residential loans
|
|
$
|
2,377
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling costs
|
|
39-99%
|
|
78%
|
Home equity lines of credit
|
|
3
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling costs
|
|
|
|
7%
|
|
Commercial loans
|
|
114
|
|
|
Fair value of property or collateral
|
|
Fair value of business assets
|
|
|
|
88%
|
|
Total loans
|
|
$
|
2,494
|
|
|
|
|
|
|
|
|
|
Real estate acquired in settlement of loans
|
|
$
|
665
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling costs
|
|
100%
|
|
100%
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
||
Residential loans
|
|
$
|
2,297
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling costs
|
|
39-99%
|
|
83%
|
Home equity lines of credit
|
|
3
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling costs
|
|
|
|
7%
|
|
Commercial loans
|
|
145
|
|
|
Fair value of property or collateral
|
|
Fair value of business assets
|
|
|
|
91%
|
|
Total loans
|
|
$
|
2,445
|
|
|
|
|
|
|
|
|
|
Real estate acquired in settlement of loans
|
|
$
|
288
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling cost
|
|
100%
|
|
100%
|
Three months ended March 31
|
|
2015
|
|
2014
|
||||
(in millions)
|
|
|
|
|
||||
Supplemental disclosures of cash flow information
|
|
|
|
|
|
|
||
HEI consolidated
|
|
|
|
|
||||
Interest paid to non-affiliates
|
|
$
|
21
|
|
|
$
|
20
|
|
Income taxes paid
|
|
1
|
|
|
1
|
|
||
Income taxes refunded
|
|
47
|
|
|
19
|
|
||
Hawaiian Electric consolidated
|
|
|
|
|
||||
Interest paid to non-affiliates
|
|
13
|
|
|
13
|
|
||
Income taxes refunded
|
|
6
|
|
|
8
|
|
||
Supplemental disclosures of noncash activities
|
|
|
|
|
|
|
||
HEI consolidated
|
|
|
|
|
||||
Increases in common stock related to director and officer compensatory plans
|
|
2
|
|
|
1
|
|
||
Real estate acquired in settlement of loans
|
|
—
|
|
|
1
|
|
||
Real estate transferred from property, plant and equipment to other assets held-for-sale
|
|
5
|
|
|
—
|
|
||
Obligations to fund low income housing investments
|
|
—
|
|
|
10
|
|
||
HEI consolidated and Hawaiian Electric consolidated
|
|
|
|
|
||||
Additions to electric utility property, plant and equipment - unpaid invoices and other
|
|
24
|
|
|
9
|
|
|
HEI Consolidated
|
|
ASB
|
|||||||||||||||||
(in thousands)
|
As previously filed
|
Adjustment from adoption of ASU No. 2014-01
|
As currently reported
|
|
As previously filed
|
Adjustment from adoption of ASU No. 2014-01
|
As currently reported
|
|||||||||||||
HEI Consolidated Income Statement/ASB Statement of Income Data
|
|
|
|
|
|
|
|
|||||||||||||
Three months ended March 31, 2014
|
|
|
|
|
|
|
|
|||||||||||||
Bank expenses/Noninterest expense
|
$
|
41,996
|
|
$
|
(908
|
)
|
$
|
41,088
|
|
|
$
|
38,370
|
|
$
|
(908
|
)
|
$
|
37,462
|
|
|
Bank operating income/Income before income taxes
|
$
|
21,623
|
|
$
|
908
|
|
$
|
22,531
|
|
|
$
|
21,624
|
|
$
|
908
|
|
$
|
22,532
|
|
|
Income taxes
|
$
|
24,673
|
|
$
|
1,048
|
|
$
|
25,721
|
|
|
$
|
7,085
|
|
$
|
1,048
|
|
$
|
8,133
|
|
|
Net income for common stock/Net income
|
$
|
45,927
|
|
$
|
(140
|
)
|
$
|
45,787
|
|
|
$
|
14,539
|
|
$
|
(140
|
)
|
$
|
14,399
|
|
|
HEI Consolidated Balance Sheet/ASB Balance Sheet Data
|
|
|
|
|
|
|
|
|||||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|||||||||||||
Other assets
|
$
|
541,542
|
|
$
|
981
|
|
$
|
542,523
|
|
|
$
|
304,435
|
|
$
|
981
|
|
$
|
305,416
|
|
|
Total assets and Total liabilities and shareholders’ equity
|
$
|
11,184,161
|
|
$
|
981
|
|
$
|
11,185,142
|
|
|
$
|
5,565,241
|
|
$
|
981
|
|
$
|
5,566,222
|
|
|
Deferred income taxes/Other liabilities
|
$
|
631,734
|
|
$
|
1,836
|
|
$
|
633,570
|
|
|
$
|
116,527
|
|
$
|
1,836
|
|
$
|
118,363
|
|
|
Total liabilities
|
$
|
9,358,440
|
|
$
|
1,836
|
|
$
|
9,360,276
|
|
|
$
|
5,030,598
|
|
$
|
1,836
|
|
$
|
5,032,434
|
|
|
Retained earnings
|
$
|
297,509
|
|
$
|
(855
|
)
|
$
|
296,654
|
|
|
$
|
212,789
|
|
$
|
(855
|
)
|
$
|
211,934
|
|
|
Total shareholders’ equity
|
$
|
1,791,428
|
|
$
|
(855
|
)
|
$
|
1,790,573
|
|
|
$
|
534,643
|
|
$
|
(855
|
)
|
$
|
533,788
|
|
|
HEI Consolidated Statement of Changes in Stockholders’ Equity
|
|
|
|
|
|
|
|
|||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|||||||||||||
Retained earnings
|
$
|
255,694
|
|
$
|
(664
|
)
|
$
|
255,030
|
|
|
|
|
|
|||||||
Total shareholders’ equity
|
$
|
1,727,070
|
|
$
|
(664
|
)
|
$
|
1,726,406
|
|
|
|
|
|
(in thousands, except per
|
|
Three months ended March 31
|
|
%
|
|
|
|||||||
share amounts)
|
|
2015
|
|
2014
|
|
change
|
|
Primary reason(s)*
|
|||||
Revenues
|
|
$
|
637,862
|
|
|
$
|
783,749
|
|
|
(19
|
)
|
|
Decrease for the electric utility segment, partly offset by increase for the bank segment
|
Operating income
|
|
69,506
|
|
|
89,214
|
|
|
(22
|
)
|
|
Decrease for the electric utility and the bank segments and higher losses for the “other” segment
|
||
Net income for common stock
|
|
31,866
|
|
|
45,787
|
|
|
(30
|
)
|
|
Lower net income for the electric utility and the bank segments and higher net loss for the “other” segment
|
||
Basic earnings per common share
|
|
$
|
0.31
|
|
|
$
|
0.45
|
|
|
(31
|
)
|
|
Lower net income and the impact of higher weighted average shares outstanding
|
Weighted-average number of common shares outstanding
|
|
103,281
|
|
|
101,382
|
|
|
2
|
|
|
Issuances of shares under the equity forward transaction, HEI Dividend Reinvestment and Stock Purchase Plan and other plans
|
(dollars in millions)
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||
Short-term borrowings—other than bank
|
|
$
|
30
|
|
|
1
|
%
|
|
$
|
119
|
|
|
3
|
%
|
Long-term debt, net—other than bank
|
|
1,507
|
|
|
43
|
|
|
1,507
|
|
|
44
|
|
||
Preferred stock of subsidiaries
|
|
34
|
|
|
1
|
|
|
34
|
|
|
1
|
|
||
Common stock equity
|
|
1,898
|
|
|
55
|
|
|
1,791
|
|
|
52
|
|
||
|
|
$
|
3,469
|
|
|
100
|
%
|
|
$
|
3,451
|
|
|
100
|
%
|
|
|
Average balance
|
|
Balance
|
||||||||
(in millions)
|
|
Three months ended March 31, 2015
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||
Short-term borrowings
1
|
|
|
|
|
|
|
|
|
|
|||
Commercial paper
|
|
$
|
102
|
|
|
$
|
1
|
|
|
$
|
119
|
|
Line of credit draws
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Undrawn capacity under HEI’s line of credit facility
|
|
|
|
150
|
|
|
150
|
|
%
|
|
Return on rate base (RORB)*
|
|
ROACE**
|
|
Rate-making ROACE***
|
|||||||||||||||||||||
Twelve months ended March 31, 2015
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|||||||||
Utility returns
|
|
7.23
|
|
|
6.00
|
|
|
7.52
|
|
|
8.03
|
|
|
6.18
|
|
|
8.87
|
|
|
8.94
|
|
|
6.28
|
|
|
9.48
|
|
PUC-allowed returns
|
|
8.11
|
|
|
8.31
|
|
|
7.34
|
|
|
10.00
|
|
|
10.00
|
|
|
9.00
|
|
|
10.00
|
|
|
10.00
|
|
|
9.00
|
|
Difference
|
|
(0.88
|
)
|
|
(2.31
|
)
|
|
0.18
|
|
|
(1.97
|
)
|
|
(3.82
|
)
|
|
(0.13
|
)
|
|
(1.06
|
)
|
|
(3.72
|
)
|
|
0.48
|
|
•
|
the effective date of June 1 (rather than January 1) for the RAMs for Hawaii Electric Light and Maui Electric currently, and for Hawaiian Electric beginning in 2017,
|
Three months ended March 31
|
|
Increase
|
|
|
|||||||||||
2015
|
|
2014
|
|
(decrease)
|
|
(dollars in millions, except per barrel amounts)
|
|||||||||
$
|
573
|
|
|
$
|
720
|
|
|
$
|
(147
|
)
|
|
|
Revenues.
Decrease largely due to:
|
||
|
|
|
|
|
$
|
(95
|
)
|
|
lower fuel prices
|
||||||
|
|
|
|
|
(35
|
)
|
|
lower purchased power costs
|
|||||||
|
|
|
|
|
(28
|
)
|
|
lower KWH generated
|
|||||||
177
|
|
|
286
|
|
|
(109
|
)
|
|
|
Fuel oil expense.
Decrease largely due to lower fuel cost and lower KWH generated
|
|||||
136
|
|
|
165
|
|
|
(29
|
)
|
|
|
Purchased power expense.
Decrease due to lower purchased power energy prices partially offset by higher KWH purchased
|
|||||
104
|
|
|
89
|
|
|
15
|
|
|
|
Operation and maintenance expenses
. Increase due to:
|
|||||
|
|
|
|
|
5
|
|
|
higher transmission, distribution and generation maintenance costs
|
|||||||
|
|
|
|
|
2
|
|
|
higher overhaul costs in the first quarter of 2015 compared to the prior year quarter that included no major overhauls
|
|||||||
|
|
|
|
|
2
|
|
|
higher bad debt reserves for one customer account
|
|||||||
|
|
|
|
|
1
|
|
|
higher consulting costs for our energy transformation plans
|
|||||||
|
|
|
|
|
1
|
|
|
accrued costs for damage to combined heat and power generating unit
|
|||||||
|
|
|
|
|
1
|
|
|
higher employee benefit costs
|
|||||||
99
|
|
|
110
|
|
|
(11
|
)
|
|
|
Other expenses.
Decrease in revenue taxes due to lower revenues offset by higher depreciation expense for plant investments
|
|||||
58
|
|
|
71
|
|
|
(13
|
)
|
|
|
Operating income.
Decrease due to an increase in operation and maintenance expenses
|
|||||
27
|
|
|
35
|
|
|
(8
|
)
|
|
|
Net income for common stock.
Decrease due to lower operating income
|
|||||
|
|
|
|
|
|
|
|
||||||||
2,044
|
|
|
2,126
|
|
|
(82
|
)
|
|
|
Kilowatthour sales (millions)
|
|||||
66.5
|
|
|
67.1
|
|
|
(0.6
|
)
|
|
|
Wet-bulb temperature (Oahu average; degrees Fahrenheit)
|
|||||
795
|
|
|
828
|
|
|
(33
|
)
|
|
|
Cooling degree days (Oahu)
|
|||||
$
|
86.60
|
|
|
$
|
131.15
|
|
|
$
|
(44.55
|
)
|
|
|
Average fuel oil cost per barrel
|
||
456,171
|
|
|
452,626
|
|
|
3,545
|
|
|
|
Customer accounts (end of period)
|
Test year
(dollars in millions)
|
|
Date
(applied/
implemented)
|
|
Amount
|
|
% over
rates in
effect
|
|
ROACE
(%)
|
|
RORB
(%)
|
|
Rate
base
|
|
Common
equity
%
|
|
Stipulated
agreement
reached with
Consumer
Advocate
|
||||||||
Hawaiian Electric
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2011
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Request
|
|
7/30/10
|
|
$
|
113.5
|
|
|
6.6
|
|
|
10.75
|
|
|
8.54
|
|
|
$
|
1,569
|
|
|
56.29
|
|
|
Yes
|
Interim increase
|
|
7/26/11
|
|
53.2
|
|
|
3.1
|
|
|
10.00
|
|
|
8.11
|
|
|
1,354
|
|
|
56.29
|
|
|
|
||
Interim increase (adjusted)
|
|
4/2/12
|
|
58.2
|
|
|
3.4
|
|
|
10.00
|
|
|
8.11
|
|
|
1,385
|
|
|
56.29
|
|
|
|
||
Interim increase (adjusted)
|
|
5/21/12
|
|
58.8
|
|
|
3.4
|
|
|
10.00
|
|
|
8.11
|
|
|
1,386
|
|
|
56.29
|
|
|
|
||
Final increase
|
|
9/1/12
|
|
58.1
|
|
|
3.4
|
|
|
10.00
|
|
|
8.11
|
|
|
1,386
|
|
|
56.29
|
|
|
|
||
2014
(2)
|
|
6/27/14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Hawaii Electric Light
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2010
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Request
|
|
12/9/09
|
|
$
|
20.9
|
|
|
6.0
|
|
|
10.75
|
|
|
8.73
|
|
|
$
|
487
|
|
|
55.91
|
|
|
Yes
|
Interim increase
|
|
1/14/11
|
|
6.0
|
|
|
1.7
|
|
|
10.50
|
|
|
8.59
|
|
|
465
|
|
|
55.91
|
|
|
|
||
Interim increase (adjusted)
|
|
1/1/12
|
|
5.2
|
|
|
1.5
|
|
|
10.50
|
|
|
8.59
|
|
|
465
|
|
|
55.91
|
|
|
|
||
Final increase
|
|
4/9/12
|
|
4.5
|
|
|
1.3
|
|
|
10.00
|
|
|
8.31
|
|
|
465
|
|
|
55.91
|
|
|
|
||
2013
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Request
|
|
8/16/12
|
|
$
|
19.8
|
|
|
4.2
|
|
|
10.25
|
|
|
8.30
|
|
|
$
|
455
|
|
|
57.05
|
|
|
|
Closed
|
|
3/27/13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Maui Electric
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2012
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Request
|
|
7/22/11
|
|
$
|
27.5
|
|
|
6.7
|
|
|
11.00
|
|
|
8.72
|
|
|
$
|
393
|
|
|
56.85
|
|
|
Yes
|
Interim increase
|
|
6/1/12
|
|
13.1
|
|
|
3.2
|
|
|
10.00
|
|
|
7.91
|
|
|
393
|
|
|
56.86
|
|
|
|
||
Final increase
|
|
8/1/13
|
|
5.3
|
|
|
1.3
|
|
|
9.00
|
|
|
7.34
|
|
|
393
|
|
|
56.86
|
|
|
|
||
2015
(6)
|
|
12/30/14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Hawaii Electric Light’s request was primarily to cover investments for system upgrade projects, two major transmission line upgrades and increasing O&M expenses. On February 8, 2012, the PUC issued a final D&O, which reflected the approval of decoupling and cost-recovery mechanisms, and on February 21, 2012, Hawaii Electric Light filed its revised tariffs to reflect the increase in rates. On April 4, 2012, the PUC issued an order approving the revised tariffs, which became effective April 9, 2012. Hawaii Electric Light implemented
|
(6)
|
See “Maui Electric 2015 test year rate case” below.
|
•
|
In July 2011, the PUC directed Hawaiian Electric to submit a draft RFP for the PUC’s consideration for a competitive bidding process for 200 MW or more of renewable energy to be delivered to, or to be sited on, the island of Oahu. In October 2011, Hawaiian Electric filed a draft RFP with the PUC. In July 2013, the PUC issued orders related to the 200-MW RFP.
Fi
rst, it issued an order that Hawaiian Electric shall amend its current draft of the Oahu 200-MW RFP to remove references to the Lanai Wind Project, eliminate solicitations for an undersea transmission cable, and amend the draft RFP to reflect other guidance provided in the order. Second, it initiated an investigative proceeding to review the progress of the Lanai Wind Project stating that there was an uncertainty whether the project developer retained an equivalent ability to develop the project as when it submitted its bid in 2008 and its term sheet in 2011. Third, the PUC initiated a proceeding to solicit information and evaluate whether an interisland grid interconnection transmission system between the islands of Oahu and Maui is in the public interest, given the potential for large-scale wind and solar projects on Maui.
|
•
|
In May 2012, the PUC approved Hawaiian Electric’s 3-year biodiesel supply contract with Renewable Energy Group for continued biodiesel supply to CIP CT-1 of 3 million to 7 million gallons per year.
|
•
|
In May 2012, Maui Electric began purchasing wind energy from the 21-MW Kaheawa Wind Power II, LLC facility, which went into commercial operation in July 2012.
|
•
|
In May 2012, Hawaiian Electric signed a contract, which was approved by the PUC, with the City and County of Honolulu to purchase an additional 27 MW of capacity and energy from an expanded waste-to-energy HPower facility, which was placed in service in April 2013.
|
•
|
In May 2012, Hawaii Electric Light signed a PPA, which the PUC approved in December 2013, with Hu Honua Bioenergy for 21.5 MW of renewable, dispatchable firm capacity fueled by locally grown biomass from a facility on the island of Hawaii.
|
•
|
In May 2012, the PUC instituted a proceeding for a competitive bidding process for up to 50 MW of firm renewable geothermal dispatchable energy (Geothermal RFP) on the island of Hawaii. Bids were received in January 2015, and in February 2015, Ormat Technologies, Inc. was selected to provide 25 MW of additional geothermal energy, subject to successful contract negotiations and PUC approval of the final agreement.
|
•
|
In August 2012, the battery facility at a 30-MW Kahuku wind farm experienced a fire. After the interconnection infrastructure was rebuilt and voltage regulation equipment was installed, the facility came up to full output in January 2014 to perform control system acceptance testing, and energy is being purchased at a base rate until PUC approval of an amendment to the PPA. An application for PUC approval of an amendment to the PPA was filed in April 2014.
|
•
|
In August 2012, the PUC approved a waiver from the competitive bidding framework to allow Hawaiian Electric to negotiate with the U.S. Army for construction of a 50-MW utility-owned and operated firm, renewable and dispatchable generation facility at Schofield Barracks on the island of Oahu and expected to be placed in service in 2017. In May 2014, Hawaiian Electric filed an application with the PUC to allow expenditures of $170 million for execution of the project, which is expected to be placed in service by the end of 2017.
|
•
|
In September 2012, Hawaiian Electric began purchasing test wind energy from the 69-MW Kawailoa Wind, LLC facility. The wind farm was placed into full commercial operation in November 2012.
|
•
|
In December 2012, the PUC approved a 3-year biodiesel supply contract with Pacific Biodiesel to supply 250,000 to 1 million gallons of biodiesel beginning in 2013.
|
•
|
In December 2012, the 21-MW Auwahi Wind Energy LLC facility was placed into commercial operation, selling power to Maui Electric under a 20-year contract.
|
•
|
In December 2012, the 5-MW Kalaeloa Solar Two, LLC PV facility was placed into commercial operation, selling power to Hawaiian Electric under a 20-year contract.
|
•
|
In February 2013, Hawaiian Electric issued an “Invitation for Low Cost Renewable Energy Projects on Oahu through Request for Waiver from Competitive Bidding,” which seeks to lower the cost of electricity for customers in the near term with qualified renewable energy projects on Oahu that can be quickly placed into service at a low cost per KWH. Proposals were received and Hawaiian Electric obtained waivers from the PUC Competitive Bidding Framework for certain projects, subject to certain conditions. In the fourth quarter of 2014, Hawaiian Electric filed applications requesting PUC approval of power purchase agreements for renewable as-available energy for seven projects that were granted waivers from the Competitive Bidding Framework.
|
•
|
In May 2013, Maui Electric requested a waiver from the PUC Competitive Bidding Framework to conduct negotiations for a PPA for approximately 4.5 to 6.0 MW of firm power from a proposed Mahinahina Energy Park, LLC project, fueled with biofuel. The PUC approved the waiver request, provided that an executed PPA must be filed for PUC approval by February 2015. The parties did not execute a PPA by the PUC deadline, but continue to negotiate.
|
•
|
In October 2013, Hawaiian Electric requested approval from the PUC for a waiver from the competitive bidding process and to commit $42.4 million for the purchase and installation of a 15-MW utility-scale PV generation system at its Kahe Power generation station property. In November 2014, the PUC denied the request for a waiver from the competitive bidding process.
|
•
|
In October 2013, the PUC approved Hawaiian Electric’s 20-year contract with Hawaii BioEnergy to supply 10 million gallons per year of biocrude at Kahe Power Plant to begin within five years of November 25, 2013.
|
•
|
In November 2013, the 5-MW Kalaeloa Renewable Energy Park, LLC PV facility was placed into commercial operation selling power to Hawaiian Electric under a 20-year contract.
|
•
|
In December 2013, Hawaiian Electric requested PUC approval for a waiver of the Na Pua Makani Power Partners, LLC’s proposed 24-MW wind farm located in the Kahuku area on Oahu from the competitive bidding process and of the PPA for Renewable As-Available Energy dated October 3, 2013 between Hawaiian Electric and Na Pua Makani Power Partners, LLC for the proposed 24-MW wind farm. In December 2014, the PUC approved both the waiver request and the PPA.
|
•
|
In April 2014, Hawaiian Electric requested PUC approval of a PPA for Renewable As-Available Energy with Lanikuhana Solar, LLC for a proposed 20-MW PV facility on Oahu.
|
•
|
In June 2014, the PUC approved the Utilities 3-year biodiesel supply contract with Pacific Biodiesel Technologies, LLC to spot purchase up to 200,000 gallons per month of as available biodiesel at cost parity to petroleum diesel.
|
•
|
In March 2015, Hawaiian Electric requested PUC approval of a 2-year biodiesel supply contract with Pacific Biodiesel Technologies, LLC to supply 2 million to 3 million gallons of biodiesel at CIP CT-1 and the Honolulu International Airport Emergency Power Facility beginning in November 2015 when existing contracts are set to expire.
|
•
|
The Utilities began accepting energy from feed-in tariff projects in 2011. As of
March 31, 2015
, there were 12 MW, 1 MW and 3 MW of installed feed-in tariff capacity from renewable energy technologies at Hawaiian Electric, Hawaii Electric Light and Maui Electric, respectively.
|
•
|
As of March 31, 2015, there were approximately 222 MW, 49 MW and 52 MW of installed net energy metering capacity from renewable energy technologies (mainly PV) at Hawaiian Electric, Hawaii Electric Light and Maui Electric, respectively. The amount of net energy metering capacity installed in the first three months of 2015 was about 32% lower than the amount installed in the first three months of 2014, principally due to higher circuit saturations (resulting in the need for further technical reviews and potential equipment modification and/or upgrades).
|
(dollars in millions)
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||
Short-term borrowings
|
|
$
|
30
|
|
|
1
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Long-term debt, net
|
|
1,207
|
|
|
41
|
|
|
1,207
|
|
|
41
|
|
||
Preferred stock
|
|
34
|
|
|
1
|
|
|
34
|
|
|
1
|
|
||
Common stock equity
|
|
1,686
|
|
|
57
|
|
|
1,682
|
|
|
58
|
|
||
|
|
$
|
2,957
|
|
|
100
|
%
|
|
$
|
2,923
|
|
|
100
|
%
|
|
|
Average balance
|
|
Balance
|
||||||||
(in millions)
|
|
Three months ended March 31, 2015
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||
Short-term borrowings
1
|
|
|
|
|
|
|
|
|
|
|||
Commercial paper
|
|
$
|
24
|
|
|
$
|
30
|
|
|
$
|
—
|
|
Line of credit draws
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Borrowings from HEI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Undrawn capacity under line of credit facility
|
|
—
|
|
|
200
|
|
|
200
|
|
|
|
Three months
ended March 31 |
|
Increase
|
|
|
||||||||
(in millions)
|
|
2015
|
|
2014
|
|
(decrease)
|
|
Primary reason(s)
|
||||||
Interest income
|
|
$
|
48
|
|
|
$
|
47
|
|
|
$
|
1
|
|
|
The impact of higher average earning asset balances was partly offset by lower yields on earning assets. ASB’s average loan portfolio balance for the first quarter of 2015 increased by $265 million compared to the same period in 2014 as average commercial real estate, home equity lines of credit and residential balances increased by $129 million, $66 million, and $57 million, respectively. The growth in these loan portfolios was reflective of ASB’s portfolio mix target and loan growth strategy. Loan portfolio yields were impacted by the low interest rate environment as new loan production yields were generally lower than the average loan portfolio yields. The average investment and mortgage-related securities portfolio balance increased by $24 million due to the purchase of investments with excess liquidity.
|
Noninterest income
|
|
16
|
|
|
17
|
|
|
(1
|
)
|
|
Lower noninterest income primarily due to $3 million lower gain on sale of securities in 2015 compared to 2014 as a result of the gain from the sale of ASB’s municipal bond portfolio in 2014, partly offset by $1 million higher deposit fee income and $1 million higher gain on sale of loans as a result of higher refinancing activity which increased loan production volumes in 2015 compared to 2014 and ASB’s decision to sell most of the low-rate loan production.
|
|||
Revenues
|
|
64
|
|
|
64
|
|
|
—
|
|
|
|
|||
Interest expense
|
|
3
|
|
|
3
|
|
|
—
|
|
|
Average deposit balances for the first quarter of 2015 increased by $273 million compared to the same period in 2014 due to an increase in core deposits. Average term certificate balances remained flat. Other borrowings increased by $51 million primarily due to an increase in repurchase agreements.
|
|||
Provision for loan losses
|
|
1
|
|
|
1
|
|
|
—
|
|
|
The provision for loan losses decreased by $0.4 million as credit quality and trends continue to be stable and good, reflecting prudent credit risk management and a strong Hawaii economy. The net charge-off ratio for the first quarter of 2015 and 2014 was 0.04% and 0.02%, respectively.
|
|||
Noninterest expense
|
|
40
|
|
|
37
|
|
|
3
|
|
|
Noninterest expense for the first quarter of 2015 was $2.9 million higher than the noninterest expense for the same period in 2014 primarily due to $1.0 million higher pension costs and $0.7 million reversal of debit card expenses in first quarter of 2014 with no similar reversal in 2015.
|
|||
Expenses
|
|
44
|
|
|
41
|
|
|
3
|
|
|
|
|||
Operating income
|
|
20
|
|
|
23
|
|
|
(3
|
)
|
|
Higher noninterest expenses and lower noninterest income, partly offset by higher net interest income and lower provision for loan losses.
|
|||
Net income
|
|
13
|
|
|
14
|
|
|
(1
|
)
|
|
|
|
|
Three months ended March 31
|
||||
(percent)
|
|
2015
|
|
2014
|
||
Return on average assets
|
|
0.96
|
|
|
1.09
|
|
Return on average equity
|
|
9.96
|
|
|
10.94
|
|
Net interest margin
|
|
3.52
|
|
|
3.64
|
|
Three months ended March 31
|
|
2015
|
|
2014
|
||||||||||||||||||
(dollars in thousands)
|
|
Average
balance |
|
Interest
1
income/
expense
|
|
Yield/
rate (%) |
|
Average
balance |
|
Interest
1
income/
expense |
|
Yield/
rate (%) |
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other investments
2
|
|
$
|
198,920
|
|
|
$
|
99
|
|
|
0.20
|
|
|
$
|
176,766
|
|
|
$
|
76
|
|
|
0.17
|
|
Securities purchased under resale agreements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,000
|
|
|
8
|
|
|
0.38
|
|
||||
Available-for-sale investment securities
|
|
549,125
|
|
|
2,952
|
|
|
2.15
|
|
|
525,582
|
|
|
3,101
|
|
|
2.36
|
|
||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential 1-4 family
|
|
2,060,485
|
|
|
22,661
|
|
|
4.40
|
|
|
2,003,541
|
|
|
22,669
|
|
|
4.53
|
|
||||
Commercial real estate
|
|
634,251
|
|
|
6,062
|
|
|
3.84
|
|
|
505,205
|
|
|
5,373
|
|
|
4.28
|
|
||||
Home equity line of credit
|
|
822,510
|
|
|
6,476
|
|
|
3.19
|
|
|
756,428
|
|
|
6,098
|
|
|
3.27
|
|
||||
Residential land
|
|
16,381
|
|
|
274
|
|
|
6.69
|
|
|
15,873
|
|
|
243
|
|
|
6.12
|
|
||||
Commercial
|
|
789,329
|
|
|
7,068
|
|
|
3.62
|
|
|
786,290
|
|
|
7,233
|
|
|
3.72
|
|
||||
Consumer
|
|
120,602
|
|
|
2,657
|
|
|
8.93
|
|
|
111,666
|
|
|
2,066
|
|
|
7.48
|
|
||||
Total loans
3,4
|
|
4,443,558
|
|
|
45,198
|
|
|
4.09
|
|
|
4,179,003
|
|
|
43,682
|
|
|
4.20
|
|
||||
Total interest-earning assets
3
|
|
5,191,603
|
|
|
48,249
|
|
|
3.73
|
|
|
4,889,351
|
|
|
46,867
|
|
|
3.85
|
|
||||
Allowance for loan losses
|
|
(45,929
|
)
|
|
|
|
|
|
|
|
(40,514
|
)
|
|
|
|
|
|
|
||||
Non-interest-earning assets
|
|
487,233
|
|
|
|
|
|
|
|
|
445,249
|
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
5,632,907
|
|
|
|
|
|
|
|
|
$
|
5,294,086
|
|
|
|
|
|
|
|
||
Liabilities and shareholder’s equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Savings
|
|
$
|
1,943,466
|
|
|
$
|
300
|
|
|
0.06
|
|
|
$
|
1,840,042
|
|
|
$
|
268
|
|
|
0.06
|
|
Interest-bearing checking
|
|
765,172
|
|
|
33
|
|
|
0.02
|
|
|
717,759
|
|
|
29
|
|
|
0.02
|
|
||||
Money market
|
|
163,737
|
|
|
50
|
|
|
0.12
|
|
|
180,990
|
|
|
57
|
|
|
0.13
|
|
||||
Time certificates
|
|
433,747
|
|
|
877
|
|
|
0.82
|
|
|
433,756
|
|
|
871
|
|
|
0.81
|
|
||||
Total interest-bearing deposits
|
|
3,306,122
|
|
|
1,260
|
|
|
0.15
|
|
|
3,172,547
|
|
|
1,225
|
|
|
0.16
|
|
||||
Advances from Federal Home Loan Bank
|
|
100,000
|
|
|
775
|
|
|
3.10
|
|
|
100,000
|
|
|
775
|
|
|
3.10
|
|
||||
Securities sold under agreements to repurchase
|
|
198,939
|
|
|
691
|
|
|
1.39
|
|
|
148,408
|
|
|
630
|
|
|
1.70
|
|
||||
Total interest-bearing liabilities
|
|
3,605,061
|
|
|
2,726
|
|
|
0.30
|
|
|
3,420,955
|
|
|
2,630
|
|
|
0.31
|
|
||||
Non-interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
|
1,374,311
|
|
|
|
|
|
|
|
|
1,234,566
|
|
|
|
|
|
|
|
||||
Other
|
|
112,344
|
|
|
|
|
|
|
|
|
111,955
|
|
|
|
|
|
|
|
||||
Shareholder’s equity
|
|
541,191
|
|
|
|
|
|
|
|
|
526,610
|
|
|
|
|
|
|
|
||||
Total liabilities and shareholder’s equity
|
|
$
|
5,632,907
|
|
|
|
|
|
|
|
|
$
|
5,294,086
|
|
|
|
|
|
|
|
||
Net interest income
|
|
|
|
|
$
|
45,523
|
|
|
|
|
|
|
|
|
$
|
44,237
|
|
|
|
|
||
Net interest margin (%)
5
|
|
|
|
|
|
|
|
3.52
|
|
|
|
|
|
|
|
|
3.64
|
|
2
|
Includes federal funds sold, interest bearing deposits and stock in the Federal Home Loan Bank of Seattle.
|
3
|
Includes loans held for sale, at lower of cost or fair value.
|
4
|
Includes loan fees of $0.5 million and $1.1 million for the three months ended
March 31, 2015
and 2014, respectively, together with interest accrued prior to suspension of interest accrual on nonaccrual loans.
|
5
|
Defined as net interest income, on a fully taxable equivalent basis, as a percentage of average total interest-earning assets.
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||
(dollars in thousands)
|
|
Balance
|
|
% of total
|
|
Balance
|
|
% of total
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Residential 1-4 family
|
|
$
|
2,039,099
|
|
|
45.8
|
|
|
$
|
2,044,205
|
|
|
46.0
|
|
Commercial real estate
|
|
561,189
|
|
|
12.6
|
|
|
531,917
|
|
|
12.0
|
|
||
Home equity line of credit
|
|
814,265
|
|
|
18.3
|
|
|
818,815
|
|
|
18.4
|
|
||
Residential land
|
|
18,155
|
|
|
0.4
|
|
|
16,240
|
|
|
0.4
|
|
||
Commercial construction
|
|
77,164
|
|
|
1.7
|
|
|
96,438
|
|
|
2.2
|
|
||
Residential construction
|
|
20,804
|
|
|
0.5
|
|
|
18,961
|
|
|
0.4
|
|
||
Total real estate, net
|
|
3,530,676
|
|
|
79.3
|
|
|
3,526,576
|
|
|
79.4
|
|
||
Commercial
|
|
803,545
|
|
|
18.0
|
|
|
791,757
|
|
|
17.8
|
|
||
Consumer
|
|
119,310
|
|
|
2.7
|
|
|
122,656
|
|
|
2.8
|
|
||
|
|
4,453,531
|
|
|
100.0
|
|
|
4,440,989
|
|
|
100.0
|
|
||
Less: Deferred fees and discounts
|
|
(6,232
|
)
|
|
|
|
|
(6,338
|
)
|
|
|
|
||
Allowance for loan losses
|
|
(45,795
|
)
|
|
|
|
|
(45,618
|
)
|
|
|
|
||
Total loans, net
|
|
$
|
4,401,504
|
|
|
|
|
|
$
|
4,389,033
|
|
|
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Outstanding balance (in thousands)
|
$
|
814,265
|
|
|
$
|
818,815
|
|
Percent of portfolio in first lien position
|
41.4
|
%
|
|
40.9
|
%
|
||
Net charge-off (recovery) ratio
|
(0.01
|
)%
|
|
(0.07
|
)%
|
||
Delinquency ratio
|
0.30
|
%
|
|
0.25
|
%
|
|
|
|
|
|
|
End of draw period – interest only
|
|
Current
|
||||||||||||||||
March 31, 2015
|
|
Total
|
|
Interest only
|
|
2015-2016
|
|
2017-2019
|
|
Thereafter
|
|
amortizing
|
||||||||||||
Outstanding balance (in thousands)
|
|
$
|
814,265
|
|
|
$
|
608,948
|
|
|
$
|
983
|
|
|
$
|
138,588
|
|
|
$
|
469,377
|
|
|
$
|
205,317
|
|
% of total
|
|
100
|
%
|
|
75
|
%
|
|
—
|
%
|
|
17
|
%
|
|
58
|
%
|
|
25
|
%
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||
(dollars in thousands)
|
|
Balance
|
|
% of total
|
|
Balance
|
|
% of total
|
||||||
U.S. Treasury and federal agency obligations
|
|
$
|
140,227
|
|
|
24
|
%
|
|
$
|
119,560
|
|
|
22
|
%
|
Mortgage-related securities — FNMA, FHLMC and GNMA
|
|
450,421
|
|
|
76
|
|
|
430,834
|
|
|
78
|
|
||
Total available-for-sale investment securities
|
|
$
|
590,648
|
|
|
100
|
%
|
|
$
|
550,394
|
|
|
100
|
%
|
|
|
Three months ended March 31
|
|
Year ended
December 31
|
||||||||
(in thousands)
|
|
2015
|
|
2014
|
|
2014
|
||||||
Allowance for loan losses, January 1
|
|
$
|
45,618
|
|
|
$
|
40,116
|
|
|
$
|
40,116
|
|
Provision for loan losses
|
|
614
|
|
|
995
|
|
|
6,126
|
|
|||
Less: net charge-offs
|
|
437
|
|
|
188
|
|
|
624
|
|
|||
Allowance for loan losses, end of period
|
|
$
|
45,795
|
|
|
$
|
40,923
|
|
|
$
|
45,618
|
|
Ratio of net charge-offs during the period to average loans outstanding (annualized)
|
|
0.04
|
%
|
|
0.02
|
%
|
|
0.01
|
%
|
Effective dates
|
|
1/1/2015
|
|
1/1/2016
|
|
1/1/2017
|
|
1/1/2018
|
|
1/1/2019
|
|||||
Capital conservation buffer
|
|
|
|
|
0.625
|
%
|
|
1.25
|
%
|
|
1.875
|
%
|
|
2.50
|
%
|
Common equity Tier-1 ratio + conservation buffer
|
|
4.50
|
%
|
|
5.125
|
%
|
|
5.75
|
%
|
|
6.375
|
%
|
|
7.00
|
%
|
Tier-1 capital ratio + conservation buffer
|
|
6.00
|
%
|
|
6.625
|
%
|
|
7.25
|
%
|
|
7.875
|
%
|
|
8.50
|
%
|
Total capital ratio + conservation buffer
|
|
8.00
|
%
|
|
8.625
|
%
|
|
9.25
|
%
|
|
9.875
|
%
|
|
10.50
|
%
|
Tier-1 leverage ratio
|
|
4.00
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
Countercyclical capital buffer — not applicable to ASB
|
|
|
|
|
0.625
|
%
|
|
1.25
|
%
|
|
1.875
|
%
|
|
2.50
|
%
|
(dollars in millions)
|
|
March 31, 2015
|
|
December 31, 2014
|
|
% change
|
||||
Total assets
|
|
$
|
5,725
|
|
|
$
|
5,566
|
|
|
3
|
Available-for-sale investment securities
|
|
591
|
|
|
550
|
|
|
7
|
||
Loans receivable held for investment, net
|
|
4,402
|
|
|
4,389
|
|
|
—
|
||
Deposit liabilities
|
|
4,751
|
|
|
4,623
|
|
|
3
|
||
Other bank borrowings
|
|
312
|
|
|
291
|
|
|
7
|
Change in interest rates
|
|
Change in NII
(gradual change in interest rates)
|
|
Change in EVE
(instantaneous change in interest rates)
|
||||||||
(basis points)
|
|
March 31, 2015
|
|
December 31, 2014
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
+300
|
|
2.3
|
%
|
|
1.9
|
%
|
|
(4.8
|
)%
|
|
(6.1
|
)%
|
+200
|
|
1.0
|
|
|
0.7
|
|
|
(1.9
|
)
|
|
(2.9
|
)
|
+100
|
|
0.3
|
|
|
0.1
|
|
|
(0.2
|
)
|
|
(0.7
|
)
|
-100
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|
(3.1
|
)
|
|
(2.5
|
)
|
Period*
|
(a)
Total Number of Shares Purchased **
|
(b)
Average
Price Paid
per Share **
|
(c)
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
(d)
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
|
||
January 1 to 31, 2015
|
19,693
|
|
$34.39
|
—
|
|
NA
|
February 1 to 28, 2015
|
8,251
|
|
$33.44
|
—
|
|
NA
|
March 1 to 31, 2015
|
233,899
|
|
$32.28
|
—
|
|
NA
|
|
Three months
ended March 31 |
|
Years ended December 31
|
|||||||||||||||||
|
2015
|
|
2014
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|||||||
HEI and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding interest on ASB deposits
|
3.21
|
|
|
3.88
|
|
|
3.80
|
|
|
3.55
|
|
|
3.30
|
|
|
3.24
|
|
|
2.90
|
|
Including interest on ASB deposits
|
3.10
|
|
|
3.74
|
|
|
3.65
|
|
|
3.42
|
|
|
3.15
|
|
|
3.04
|
|
|
2.65
|
|
Hawaiian Electric and Subsidiaries
|
3.39
|
|
|
4.07
|
|
|
4.04
|
|
|
3.72
|
|
|
3.37
|
|
|
3.52
|
|
|
2.88
|
|
HEI Exhibit 4
|
|
First Amendment to Master Trust Agreement (dated as of September 4, 2012) effective March 1, 2015 between HEI and ASB and Fidelity Management Trust Company
|
|
|
|
HEI Exhibit 12.1
|
|
Hawaiian Electric Industries, Inc. and Subsidiaries
Computation of ratio of earnings to fixed charges, three months ended March 31, 2015 and 2014 and years ended December 31, 2014, 2013, 2012, 2011 and 2010
|
|
|
|
HEI Exhibit 31.1
|
|
Certification Pursuant to Rule 13a-14 promulgated under the Securities Exchange Act of 1934 of Constance H. Lau (HEI Chief Executive Officer)
|
|
|
|
HEI Exhibit 31.2
|
|
Certification Pursuant to Rule 13a-14 promulgated under the Securities Exchange Act of 1934 of James A. Ajello (HEI Chief Financial Officer)
|
|
|
|
HEI Exhibit 32.1
|
|
HEI Certification Pursuant to 18 U.S.C. Section 1350
|
|
|
|
HEI Exhibit 101.INS
|
|
XBRL Instance Document
|
|
|
|
HEI Exhibit 101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
HEI Exhibit 101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
HEI Exhibit 101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
HEI Exhibit 101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
HEI Exhibit 101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
Hawaiian Electric Exhibit 10
|
|
Third Amendment, dated February 11, 2015, to the Inter-Island Industrial Fuel Oil and Diesel Fuel Supply Contract by and between Hawaii Independent Energy (formerly known as Tesoro, which was formerly known as BHP Petroleum Americas Refining Inc.), LLC and Hawaiian Electric, Maui Electric and Hawaii Electric Light, dated November 14, 1997 (confidential treatment has been requested for portions of this exhibit, which has been redacted accordingly)
|
|
|
|
Hawaiian Electric Exhibit 12.2
|
|
Hawaiian Electric Company, Inc. and Subsidiaries
Computation of ratio of earnings to fixed charges, three months ended March 31, 2015 and 2014 and years ended December 31, 2014, 2013, 2012, 2011 and 2010
|
|
|
|
Hawaiian Electric Exhibit 31.3
|
|
Certification Pursuant to Rule 13a-14 promulgated under the Securities Exchange Act of 1934 of Alan M. Oshima (Hawaiian Electric Chief Executive Officer)
|
|
|
|
Hawaiian Electric Exhibit 31.4
|
|
Certification Pursuant to Rule 13a-14 promulgated under the Securities Exchange Act of 1934 of Tayne S. Y. Sekimura (Hawaiian Electric Chief Financial Officer)
|
|
|
|
Hawaiian Electric Exhibit 32.2
|
|
Hawaiian Electric Certification Pursuant to 18 U.S.C. Section 1350
|
HAWAIIAN ELECTRIC INDUSTRIES, INC.
|
|
HAWAIIAN ELECTRIC COMPANY, INC.
|
||
(Registrant)
|
|
(Registrant)
|
||
|
|
|
||
|
|
|
||
By
|
/s/ Constance H. Lau
|
|
By
|
/s/ Alan M. Oshima
|
|
Constance H. Lau
|
|
|
Alan M. Oshima
|
|
President and Chief Executive Officer
|
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer of HEI)
|
|
|
(Principal Executive Officer of Hawaiian Electric)
|
|
|
|
||
|
|
|
||
By
|
/s/ James A. Ajello
|
|
By
|
/s/ Tayne S. Y. Sekimura
|
|
James A. Ajello
|
|
|
Tayne S. Y. Sekimura
|
|
Executive Vice President and
|
|
|
Senior Vice President
|
|
Chief Financial Officer
|
|
|
and Chief Financial Officer
|
|
(Principal Financial and Accounting
|
|
|
(Principal Financial Officer of Hawaiian Electric)
|
|
Officer of HEI)
|
|
|
|
|
|
|
||
|
|
|
||
Date: May 6, 2015
|
|
Date: May 6, 2015
|
(1)
|
Restating Section 20(k),
Sponsor Authorization
, in its entirety, as follows:
|
•
|
If contributions and instructions to purchase investment options are received by the Trustee In Good Order before the close of trading, the Trustee executes transactions in the investment options as of that day’s closing price (the
|
•
|
Instructions to exchange investment options received by the Trustee In Good Order before the close of trading are processed in that day’s nightly cycle. For the vast majority of investment options, exchanges generate no overnight balances, as money is received from one investment option and conveyed to another investment option on the same business day. The limited exceptions to this would occur if investment options have different settlement rules and Fidelity Management Trust Company serves as trustee of the Plan, in which case balances attributable to the exchange may remain in an omnibus account for a few days.
|
•
|
Instructions to make disbursements received In Good Order before the close of trading are processed in that day’s nightly cycle and reflected as debits from Participant accounts as of that date (“T”). Proceeds attributable to the disbursement are received into the omnibus account based on the settlement period for the investment options, which in the substantial majority of investment options is T+1. After the deduction of tax withholding, if applicable, disbursements are typically made on T+2 or T+3 either through electronic funds transfers or by mailing a check. Disbursement proceeds distributed by check, net of any tax withholdings, remain in the omnibus account until the check is presented for payment.
|
(2)
|
Amending the “Other” section of Schedule A,
Administrative Services
, to delete subsection (g)(iv),
Fees
, in its entirety, and renumbering all subsequent subsections accordingly.
|
(3)
|
Restating Schedule B,
Fee Schedule
, in its entirety, as attached hereto.
|
(4)
|
Restating Schedule B-1,
Procedures Governing Revenue Credit Account
, in its entirety, as attached hereto.
|
(5)
|
Restating Schedule C,
Investment Options
, in its entirety, as attached hereto.
|
HAWAIIN ELECTRIC INDUSTRIES, INC.
AND AMERICAN SAVINGS BANK, F.S.B.
|
|
FIDELITY MANAGEMENT TRUST
COMPANY
|
BY: HAWAIIN ELECTRIC INDUSTRIES, INC.
PENSION INVESTMENT COMMITTEE
|
|
|
By:
/s/ James A. Ajello
2/26/15
James A. Ajello Date
Chairman
|
|
By:
/s/ Greg Gardiner 3/2/2015 3:21 PM ET
FMTC Authorized Signatory Date
Name:
Greg Gardiner
Title:
Vice President, Relationship Management
|
By:
/s/ Chester A. Richardson
2/26/15
Chester A. Richardson Date
Secretary
|
|
|
Core Fees
|
Fixed Basis Points Fee
|
|
Annual Administration Fee for Core Services
This fee is billed quarterly.
|
7 basis points on total Plan assets, subject to the offsets described below.
|
|
Standard Administrative Forms, Confirmations, and Standard Legal Notices with print or email distribution
|
Included
|
|
Transaction Fees
|
Fee
|
Per
|
Loan Initiation
|
$35
|
Loan Initiated
|
Loan Maintenance Fee
|
$3.75
|
Per Quarter
|
In-Service Non Hardship Withdrawals
|
Included
|
Check/EFT
|
Return of Excess Contributions/Deferrals
|
Included
|
Check/EFT
|
Mailing Documents/Checks via Overnight Service
|
$25
|
Item
|
Minimum Required Distributions
|
$25
|
Check/EFT
|
Ongoing Communication and Education
|
Fee
|
|
Fidelity’s personalized, comprehensive Employee Experience Program delivered directly to your Participants via their preferred channel including print, e-mail, web, and phone:
1. Multi-Touch Enrollment
2. Onboarding Program
3. Needs-Based Workplace Campaigns
4. Needs-Based Life Stage Messaging Campaigns
5. Educational campaigns for retirees and job changers
Associated postage is included.
|
Included
|
|
Custom materials development (including graphic design, typesetting, writing, layout, video production and language translation)
|
Fee for Service
|
|
Print, Fulfillment and Distribution for Custom Communications
|
Fee for Service
|
|
Postage for Custom Communications
|
Pass Through
|
|
Fidelity Participant Disclosure Service - 404a-5 Disclosure Program
Develop and distribute initial and annual notices at client direction to assist with compliance of 404a-5 upon effective date. Notice available via print or e-delivery (in accordance with DOL e-delivery rules).
Develop and distribute custom notices related to changes in Participant and/or transaction fees at client direction to assist with compliance of 404a-5 upon effective date. Notice available via print or e-delivery (in accordance with DOL e-delivery rules).
|
Development - Included
Distribution - Pass Through
Development - Fee for Service
Distribution -Pass Through
|
Ongoing Communication and Education
Continued
|
Fee
|
Employee Meetings Days On Site (up to 4 meetings per day)
Note: Subject to the cancellation and minimum attendance policy.
|
6 days included across the DC relationship with additional days available for $1,800 per day
|
Live Plan Specific Web Workshop Sessions
Note: Subject to the cancellation and minimum attendance policy.
|
$400 per session
|
Online, On Demand, Plan Specific Recordings using Brainshark Technology
|
$900 each
- Unlimited viewings
|
Standard Universal Live and Recorded Web Workshops
|
Included
|
Educational content on-line including e-learning, Fidelity
Viewpoints
®
- Workplace Edition Magazine online, educational articles and calculators, and Plan level information
|
Included
|
Sponsor Stock Administration
|
|
Unitized Sponsor Stock Fund Administration
|
Ten basis points on all company stock assets subject to a $10,000 annual minimum, a $35,000 annual maximum per Plan
|
Sponsor Stock Dividend Pass Through
|
$3 per EFT
$6 per Check
Reinvest is Included
|
Full Proxy Services Administration, Mailing and Tabulation
|
Pass Through at Cost
|
Full File on Shareholders for External Proxy Services
|
Included
|
Sponsor Stock Trading Commission
|
Fee
|
Per
|
Unitized Commission Accounting
|
Up to $0.01 per share*
|
Per Buy/Sell Share
|
Stock Administration Services are not available to clients using a third party Trustee.
Fee quotes assume that all trades to be executed by Fidelity Capital Markets (“Capital Markets”), a division of National Financial Services LLC. The Real Time and Share Accounted products require the use of Capital Markets.
Please note: The SEC requires all firms to charge an SEC fee of $22.10 per $1,000,000 on all executed sell orders. This fee may change, and the last change to the fee became effective 3/18/14.
*If special trading is requested such as Trade Date+1 etc., commissions may vary.
|
Special Projects
|
Fee
|
Fulfilling a client-specific request that is not included in the services as documented in the assumptions. Examples include additional feeds, custom service features and special processing.
Ongoing
Plan and program changes.
Change in scope of existing services as documented in Directions Documents describing the services.
Client specific processing requested as an alternative to Fidelity’s standard solution including any additional resources to support said non-standard solution. Examples include change to data feeds, special offering windows and procedural changes.
Support of Corporate Actions. Examples include reorganization, layoff, mergers, acquisitions and divestitures
Custom communications development
Fund Changes
|
$175/hour
|
Travel and related expenses for Special Projects
|
Pass through
|
A.
|
Offsets for Fidelity investment products
: Balances held and settled in Fidelity investment products in the Plan as of the December 31 of the prior year, multiplied by the following rates respectively:
|
(1)
|
Actively managed (non-Class K) Fidelity equity Mutual Funds: 35 basis points per annum;
|
(2)
|
Actively managed (non-Class K) Fidelity Freedom
®
Funds: 35 basis points per annum;
|
(3)
|
Actively managed (Class K) Fidelity equity Mutual Funds: 20 basis points per annum;
|
(4)
|
Actively managed Fidelity Freedom
®
K Funds: 20 basis points per annum;
|
(5)
|
Fidelity Enhanced Equity Index Funds: 10 basis points per annum;
|
(6)
|
Actively managed Fidelity fixed income and money market Mutual Funds, except for certain Fidelity institutional money market Mutual Funds (e.g. FIMM Funds): 20 basis points per annum;
|
(7)
|
Managed Income Portfolio I: 20 basis points per annum;
|
(8)
|
Actively managed Fidelity and Pyramis commingled pools (excluding stable value commingled pools): 10 basis points per annum.
|
B.
|
Offsets for Non-Fidelity investment products
: Balances held in Non-Fidelity investment products in the Plan as of the December 31 of the prior year multiplied by the annual rate that the Non-Fidelity investment products vendor has agreed to use to determine payments to FIIOC.
|
C.
|
Offsets attributable to Net Float Earnings
: The amount of Net Float Earnings allocated to the Plan during the prior calendar year.
|
D.
|
Offsets for BrokerageLink
®
: No offsets are available for assets held in BrokerageLink
®
.
|
A.
|
Funding
. The Trustee shall fund quarterly in arrears the pro rata portion of the annual Revenue Credit as soon as administratively feasible (generally within 15 Business Days) after the quarterly invoice has been issued and sent.
|
B.
|
Investment
. The Revenue Credit Account shall be invested in the fund specified for such purpose on Schedule C.
|
C.
|
Application of Account
. The Administrator or Named Fiduciary may direct the Trustee to use amounts held in the Revenue Credit Account to reimburse the Sponsor for reasonable fees and expenses associated with services necessary to the operation of the Plan, or pay such vendors, including the Trustee or third parties, directly. Amounts unused for expenses may be allocated to Participant accounts in accordance with this section, provided that such allocation shall not occur more frequently than quarterly. Procedures attached as Schedule B-1, as it may be amended from time to time, shall govern payment of third parties as well as any allocation to Participant accounts.
|
D.
|
Directions
. The Administrator or Named Fiduciary shall provide direction to the Trustee when it wishes to use amounts held in the Revenue Credit Account for the payment of Plan expenses or allocation to Participants. In providing any direction to pay expenses or to allocate amounts to Participant accounts, the Administrator or Named Fiduciary shall have concluded that the payments or allocations are permissible under the Plan and meet the requirements of applicable laws, including ERISA and the Code.
|
E.
|
12b-1 Payments
. To the extent any Revenue Credits are deemed to be attributable to investments in Fidelity Mutual Funds that have adopted a plan pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“1940 Act”) at the time such Revenue Credits are made, such Revenue Credits shall be made available pursuant to such plan (“12b-1 Payments”), and the following conditions shall apply:
|
(i)
|
The obligation to make 12b-1 Payments shall continue in effect for one year from the Effective Date of this amendment, and shall continue for successive annual periods only upon at least annual approval by a vote of the majority of the trustees for each of those Fidelity Mutual Funds that have adopted such plans, including a majority of those trustees
|
(ii)
|
Notwithstanding any provision hereof to the contrary, the obligation to make these 12b-1 Payments with respect to any plan may be terminated without penalty at any time, upon either a vote of a majority of the Qualified Trustees, or upon a vote of a majority of the outstanding voting securities (as defined in the 1940 Act) of the applicable Fidelity Mutual Fund to terminate or not continue the plan for the applicable Fidelity Mutual Fund.
|
(iii)
|
Upon assignment of this Agreement, the obligation to make 12b-1 Payments shall automatically
terminate.
|
A.
|
Performance Payments Terms
. The Trustee shall make payments to a Performance Account, as defined below, in the event that the Trustee fails to meet performance standards set forth in Schedule F in accordance with the following terms (“Performance Payments”):
|
(i)
|
Fees for Fidelity-provided Services
. Performance Payments shall be first used to offset any cost of services provided by the Trustee to the Plan that would otherwise be payable pursuant to this Agreement, as it may be amended from time to time, (“Fees”) and that are initially billed at the time that the Performance Payments are assessed. Outstanding due and payable Fees will not be offset when Performance Payments are assessed; however, the Trustee reserves the right to offset such Fees with amounts from the Performance Account as defined below. If there is more than one Plan for which Performance Payments are made, the amounts for each Plan will be held and accounted for in separate Performance Accounts.
|
(ii)
|
Performance Account
. If no Fees are to be initially billed at the time that Performance Payments are assessed, then the Performance Payments shall be credited to a suspense account in the Plan to be used to defray reasonable Plan expenses (the “Performance Account”) that shall be maintained by the Trustee. Amounts credited to the Performance Account shall be invested in the Fidelity
®
Money Market Trust Retirement Money Market Portfolio.
|
(iii)
|
Application of the Performance Account
. Amounts held in the Performance Account shall be used as described in this subsection A(iii), and shall be subject to all the provisions of this “Performance Payments” section, and upon receipt of proper directions consistent with subsection A(iv) below from the Administrator or Named Fiduciary, amounts held in the Performance Account shall be used, as follows:
|
(a)
|
Fees for Services
:
The Administrator or Named Fiduciary may direct the Trustee to debit the Plan’s Performance Account for the payment of outstanding amounts owed to the Trustee for services provided to the Plan.
|
(b)
|
Payment to Sponsor
. The Administrator or Named Fiduciary may direct the Trustee to debit the Plan’s Performance Account and use such amounts to reimburse the Sponsor for expenses incurred by the Sponsor on behalf of the Plan within the prior 12 months. For purposes of this “Performance Payments” section, an expense is incurred as of the date of the invoice, or if earlier the date on which the Sponsor paid for the service.
|
(c)
|
Payments to Third Parties
. Nothing in this subsection A(iii) shall obligate the Trustee to make payments to any entity other than the Sponsor under the terms hereof. Notwithstanding the foregoing, subject to the Trustee’s approval, the Administrator or Named Fiduciary may request and the Trustee may agree to pay third party vendor invoices subject to the terms of the Performance Account Procedures herein, and in accordance with a separate letter of direction from the Administrator or Named Fiduciary to the Trustee.
|
(d)
|
No Allocation to Participant Accounts
. Amounts held in the Performance Account may not be allocated to Participant accounts.
|
(e)
|
Termination of Agreement
. Upon termination of this Agreement, the balance in the Performance Account shall be transferred, in cash, to the successor trustee in accordance with the directions of the Administrator or Named Fiduciary. The Trustee and its affiliates shall have no rights to any amounts in the Performance Account except as specifically provided in this Agreement.
|
(iv)
|
The Administrator or Named Fiduciary shall provide direction to the Trustee when it wishes to use amounts held in the Performance Account for the payment of Plan expenses. A letter of direction with instructions for reimbursement or offset shall include certification from the Administrator or Named Fiduciary, that: (1) the Plan allows for payment of such expenses from the Plan and absent the Performance Payments arrangement, the Administrator or Named Fiduciary would pay such expenses from Plan assets; (2) such expenses are reasonable, necessary and direct expenses of such Plan within the meaning of ERISA, and (3) the services for which payment or offset is requested (a) were rendered to the Plan during the time in which the performance standards outlined in Schedule F are in effect, and/or (b) paid or incurred by the Sponsor on behalf of the Plan within the prior 12 months; and (4) the receipt of such payment does not violate, to the knowledge of the Administrator or Named Fiduciary, any applicable state or federal law (including, without limitation, the prohibited transaction provisions of ERISA or the Code). Neither the Trustee nor any of its affiliates shall have any responsibility to make or verify any certification provided by the Administrator or Named Fiduciary under this subsection A(iv). The Sponsor acknowledges that reasonable, necessary and direct expenses of the Plan shall not include any operating expenses paid by Mutual Fund shareholders generally that are reflected in the net asset values of such Mutual Fund shares held by the Plan.
|
(v)
|
Any debits or payments pursuant to section B below shall be limited to the amount of the Performance Account for the Plan at the time the direction is submitted to the Trustee, and shall be subject to the Performance Payment Procedures set forth in section B.
|
(vi)
|
A Performance Payment cannot be used to offset, reimburse or pay: (i) expenses that have been deducted from Participant accounts; (ii) expenses that are accrued in the net asset value or mil rate of an investment option; or (iii) fees for Fidelity-provided investment management services. The Trustee reserves the right to exclude additional expenses and/or services from eligibility for offset or reimbursement from the Performance Account.
|
B.
|
Performance Payments Procedures
. The following procedures govern the use of amounts held in the Performance Account to offset the cost of services provided by the Trustee or its affiliate(s), to reimburse the Sponsor for other Plan expenses or to pay third-party invoices at the Administrator’s or Named Fiduciary’s direction. The Trustee reserves the right to amend the procedures in this section B at any time, upon notice to the Sponsor.
|
(i)
|
If the Administrator or Named Fiduciary has directed the Trustee to use amounts to offset the costs of Fidelity-provided services that are due and payable, the Trustee will apply such amounts, to the extent available, at the time such direction is received. Any Fees for Fidelity‑provided services not offset by Performance Payment amounts will remain due and payable pursuant to ordinary invoice and contract terms.
|
(ii)
|
If the Administrator or Named Fiduciary has directed the Trustee to reimburse amounts from the Performance Account, the Trustee will reimburse the amount directed to the extent available. If the submitted expenses exceed the balance in the Performance Account, the Trustee will reimburse the Sponsor to the extent of the available balance of the Performance Account. If additional amounts are credited to the Performance Account, the excess expenses will not be reimbursed to the Sponsor without additional direction from the Administrator or Named Fiduciary to do so.
|
(iii)
|
The Trustee will use amounts held in the Performance Account at the time written direction is received and In Good Order. Such direction shall be provided to the Plan’s relationship or client service manager consistent with established procedures. The Trustee will promptly notify the Administrator or Named Fiduciary if the direction is not In Good Order, but it shall be the responsibility of the Administrator or Named Fiduciary to correct and resubmit the required documentation.
|
(iv)
|
The Trustee is not responsible for any late charges, interest or penalties that may accrue owing to untimely submission to the Trustee of directions In Good Order. The Trustee shall use amounts held in the Performance Account to defray such late charges, interest or penalties only if expressly directed to do so.
|
(v)
|
The Trustee will make payments from the Performance Account to the extent that amounts are available in the Performance Account at the time direction and documentation is submitted In Good Order through a General Service Request via Plan Sponsor Webstation
®
. All inquiries regarding application of any amount in the Performance Account should be directed to your service team.
|
(vi)
|
The Trustee shall maintain the Performance Account balance and shall report any such balance to the Sponsor, upon Sponsor’s request.
|
HAWAIIN ELECTRIC INDUSTRIES, INC.
AND AMERICAN SAVINGS BANK, F.S.B. |
|
FIDELITY MANAGEMENT TRUST
COMPANY |
BY: HAWAIIN ELECTRIC INDUSTRIES, INC.
PENSION INVESTMENT COMMITTEE |
|
|
By:
/s/ James A. Ajello 2/26/15
James A. Ajello Date
Chairman |
|
By:
/s/ Greg Gardiner 3/2/2015 3:21 PM ET
FMTC Authorized Signatory Date
Name: Greg Gardiner
Title: Vice President, Relationship Management
|
By:
/s/ Chester A. Richardson 2/26/15
Chester A. Richardson Date
Secretary |
|
|
HAWAIIAN ELECTRIC INDUSTRIES, INC.
AND AMERICAN SAVINGS BANK, F.S.B.
BY: HAWAIIAN ELECTRIC INDUSTRIES, INC.
PENSION INVESTMENT COMMITTEE
|
By:
/s/ James A. Ajello 2/26/15
James A. Ajello Date
Chairman
By:
/s/ Chester A. Richardson 2/26/15
Chester A. Richardson Date
Secretary
|
a.
|
By replacing Section IV, which sets forth the minimum and maximum quantities of ULSD and Diesel No. 2 with the following, to increase the maximum quantities of ULSD and continue the same minimum and maximum quantities of Diesel No. 2:
|
|
ULSD
|
|
DIESEL NO. 2
|
||
|
|
|
|
||
[. . .
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
]
|
b.
|
By deleting the second paragraph and replacing it in its entirety with the following:
|
HAWAII INDEPENDENT ENERGY, LLC
|
/s/ Jeff M. Shaffer
____________________________________
By Jeff M. Shaffer
Its Vice President
|
AGREED AND CONFIRMED
ON BEHALF OF HAWAIIAN ELECTRIC COMPANY, INC.
|
/s/ Tayne S. Y. Sekimura
____________________________________
By Tayne S. Y. Sekimura
Its Sr. Vice President & Chief Financial Officer
Date: 2-23-15
|
|
/s/ Ronald Cox
____________________________________ By Ronald Cox Its Vice President, Power Supply
Date: February 23, 2015
|
AGREED AND CONFIRMED
ON BEHALF OF MAUI ELECTRIC COMPANY, LIMITED |
/s/ Tayne S. Y. Sekimura
____________________________________ By Tayne S. Y. Sekimura Its Financial Vice President Date: 2-23-15 |
|
/s/ Lyle J. Matsunaga
____________________________________
By Lyle J. Matsunaga
Its Assistant Treasurer
Date: 2-23-15
|
AGREED AND CONFIRMED
ON BEHALF OF HAWAII ELECTRIC LIGHT COMPANY, INC. |
/s/ Tayne S. Y. Sekimura
____________________________________ By Tayne S. Y. Sekimura Its Financial Vice President Date: 2-23-15 |
|
/s/ Jay Ignacio
____________________________________
By Jay Ignacio
Its President
Date: 2-23-15
|
Three months ended March 31
|
|
2015 (1)
|
|
2015 (2)
|
|
2014 (1)
|
|
2014 (2)
|
||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total interest charges
|
|
$
|
20,788
|
|
|
$
|
22,048
|
|
|
$
|
21,900
|
|
|
$
|
23,125
|
|
Interest component of rentals
|
|
1,548
|
|
|
1,548
|
|
|
1,621
|
|
|
1,621
|
|
||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
765
|
|
|
765
|
|
|
736
|
|
|
736
|
|
||||
Total fixed charges
|
|
$
|
23,101
|
|
|
$
|
24,361
|
|
|
$
|
24,257
|
|
|
$
|
25,482
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax income from continuing operations
|
|
$
|
51,845
|
|
|
$
|
51,845
|
|
|
$
|
71,508
|
|
|
$
|
71,508
|
|
Fixed charges, as shown
|
|
23,101
|
|
|
24,361
|
|
|
24,257
|
|
|
25,482
|
|
||||
Interest capitalized
|
|
(721
|
)
|
|
(721
|
)
|
|
(1,653
|
)
|
|
(1,653
|
)
|
||||
Earnings available for fixed charges
|
|
$
|
74,225
|
|
|
$
|
75,485
|
|
|
$
|
94,112
|
|
|
$
|
95,337
|
|
Ratio of earnings to fixed charges
|
|
3.21
|
|
|
3.10
|
|
|
3.88
|
|
|
3.74
|
|
Years ended December 31
|
|
2014 (1)
|
|
2014 (2)
|
|
2013 (1)
|
|
2013 (2)
|
|
2012 (1)
|
|
2012 (2)
|
||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total interest charges
|
|
$
|
83,458
|
|
|
$
|
88,535
|
|
|
$
|
85,315
|
|
|
$
|
90,407
|
|
|
$
|
83,020
|
|
|
$
|
89,443
|
|
Interest component of rentals
|
|
6,366
|
|
|
6,366
|
|
|
6,345
|
|
|
6,345
|
|
|
6,493
|
|
|
6,493
|
|
||||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
2,952
|
|
|
2,952
|
|
|
2,886
|
|
|
2,886
|
|
|
2,943
|
|
|
2,943
|
|
||||||
Total fixed charges
|
|
$
|
92,776
|
|
|
$
|
97,853
|
|
|
$
|
94,546
|
|
|
$
|
99,638
|
|
|
$
|
92,456
|
|
|
$
|
98,879
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pretax income from continuing operations
|
|
$
|
263,708
|
|
|
$
|
263,708
|
|
|
$
|
247,946
|
|
|
$
|
247,946
|
|
|
$
|
217,064
|
|
|
$
|
217,064
|
|
Fixed charges, as shown
|
|
92,776
|
|
|
97,853
|
|
|
94,546
|
|
|
99,638
|
|
|
92,456
|
|
|
98,879
|
|
||||||
Interest capitalized
|
|
(3,954
|
)
|
|
(3,954
|
)
|
|
(7,097
|
)
|
|
(7,097
|
)
|
|
(4,355
|
)
|
|
(4,355
|
)
|
||||||
Earnings available for fixed charges
|
|
$
|
352,530
|
|
|
$
|
357,607
|
|
|
$
|
335,395
|
|
|
$
|
340,487
|
|
|
$
|
305,165
|
|
|
$
|
311,588
|
|
Ratio of earnings to fixed charges
|
|
3.80
|
|
|
3.65
|
|
|
3.55
|
|
|
3.42
|
|
|
3.30
|
|
|
3.15
|
|
Years ended December 31
|
|
2011 (1)
|
|
2011 (2)
|
|
2010 (1)
|
|
2010 (2)
|
||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total interest charges (3)
|
|
$
|
87,592
|
|
|
$
|
96,575
|
|
|
$
|
87,191
|
|
|
$
|
101,887
|
|
Interest component of rentals
|
|
4,757
|
|
|
4,757
|
|
|
4,282
|
|
|
4,282
|
|
||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
2,944
|
|
|
2,944
|
|
|
3,016
|
|
|
3,016
|
|
||||
Total fixed charges
|
|
$
|
95,293
|
|
|
$
|
104,276
|
|
|
$
|
94,489
|
|
|
$
|
109,185
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax income from continuing operations
|
|
$
|
215,686
|
|
|
$
|
215,686
|
|
|
$
|
182,207
|
|
|
$
|
182,207
|
|
Fixed charges, as shown
|
|
95,293
|
|
|
104,276
|
|
|
94,489
|
|
|
109,185
|
|
||||
Interest capitalized
|
|
(2,498
|
)
|
|
(2,498
|
)
|
|
(2,558
|
)
|
|
(2,558
|
)
|
||||
Earnings available for fixed charges
|
|
$
|
308,481
|
|
|
$
|
317,464
|
|
|
$
|
274,138
|
|
|
$
|
288,834
|
|
Ratio of earnings to fixed charges
|
|
3.24
|
|
|
3.04
|
|
|
2.90
|
|
|
2.65
|
|
(1)
|
Excluding interest on ASB deposits.
|
(2)
|
Including interest on ASB deposits.
|
|
|
Three months
ended March 31 |
|
Years ended December 31
|
||||||||||||||||||||||||
(dollars in thousands)
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
||||||||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total interest charges
|
|
$
|
16,547
|
|
|
$
|
16,762
|
|
|
$
|
66,132
|
|
|
$
|
64,130
|
|
|
$
|
62,056
|
|
|
$
|
60,031
|
|
|
$
|
61,510
|
|
Interest component of rentals
|
|
798
|
|
|
859
|
|
|
3,244
|
|
|
2,793
|
|
|
2,690
|
|
|
2,152
|
|
|
1,857
|
|
|||||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
361
|
|
|
364
|
|
|
1,444
|
|
|
1,421
|
|
|
1,467
|
|
|
1,468
|
|
|
1,461
|
|
|||||||
Total fixed charges
|
|
$
|
17,706
|
|
|
$
|
17,985
|
|
|
$
|
70,820
|
|
|
$
|
68,344
|
|
|
$
|
66,213
|
|
|
$
|
63,651
|
|
|
$
|
64,828
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income attributable to Hawaiian Electric
|
|
$
|
27,144
|
|
|
$
|
35,690
|
|
|
$
|
138,721
|
|
|
$
|
124,009
|
|
|
$
|
100,356
|
|
|
$
|
101,066
|
|
|
$
|
77,669
|
|
Fixed charges, as shown
|
|
17,706
|
|
|
17,985
|
|
|
70,820
|
|
|
68,344
|
|
|
66,213
|
|
|
63,651
|
|
|
64,828
|
|
|||||||
Income taxes
|
|
15,850
|
|
|
21,247
|
|
|
80,725
|
|
|
69,117
|
|
|
61,048
|
|
|
61,584
|
|
|
46,868
|
|
|||||||
Interest capitalized
|
|
(721
|
)
|
|
(1,653
|
)
|
|
(3,954
|
)
|
|
(7,097
|
)
|
|
(4,355
|
)
|
|
(2,498
|
)
|
|
(2,558
|
)
|
|||||||
Earnings available for fixed charges
|
|
$
|
59,979
|
|
|
$
|
73,269
|
|
|
$
|
286,312
|
|
|
$
|
254,373
|
|
|
$
|
223,262
|
|
|
$
|
223,803
|
|
|
$
|
186,807
|
|
Ratio of earnings to fixed charges
|
|
3.39
|
|
|
4.07
|
|
|
4.04
|
|
|
3.72
|
|
|
3.37
|
|
|
3.52
|
|
|
2.88
|
|
Date: May 6, 2015
|
|
|
/s/ Constance H. Lau
|
|
Constance H. Lau
|
|
President and Chief Executive Officer
|
Date: May 6, 2015
|
|
|
/s/ James A. Ajello
|
|
James A. Ajello
|
|
Executive Vice President and Chief Financial Officer
|
Date: May 6, 2015
|
|
|
/s/ Alan M. Oshima
|
|
Alan M. Oshima
|
|
President and Chief Executive Officer
|
Date: May 6, 2015
|
|
|
/s/ Tayne S. Y. Sekimura
|
|
Tayne S. Y. Sekimura
|
|
Senior Vice President and Chief Financial Officer
|
Date: May 6, 2015
|
|
/s/ Constance H. Lau
|
Constance H. Lau
|
President and Chief Executive Officer
|
|
/s/ James A. Ajello
|
James A. Ajello
|
Executive Vice President and Chief Financial Officer
|
Date: May 6, 2015
|
|
/s/ Alan M. Oshima
|
Alan M. Oshima
|
President and Chief Executive Officer
|
|
/s/ Tayne S. Y. Sekimura
|
Tayne S. Y. Sekimura
|
Senior Vice President and Chief Financial Officer
|