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 October 28, 2016
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Hawaiian Electric Industries, Inc. (Without Par Value)
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108,524,493 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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Cautionary Note Regarding
Forward-Looking Statements
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Terms
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Definitions
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AES Hawaii
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AES Hawaii, Inc.
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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. (dissolved in 2015); 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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DER
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Distributed Energy Resources
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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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EPA
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Environmental Protection Agency — federal
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EPS
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Earnings per share
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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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FERC
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Federal Energy Regulatory Commission
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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
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Greenhouse gas
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Terms
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Definitions
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GNMA
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Government National Mortgage Association
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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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HIE
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Hawaii Independent Energy, LLC
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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. (dissolved in 2015) 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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Kalaeloa
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Kalaeloa Partners, L.P.
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KWH
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Kilowatthour/s (as applicable)
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LNG
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Liquefied natural gas
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LTIP
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Long-term incentive plan
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MATS
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Mercury and Air Toxics Standards
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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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MW
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Megawatt/s (as applicable)
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NEE
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NextEra Energy, Inc.
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NEM
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Net energy metering
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NII
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Net interest income
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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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PSIPs
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Power Supply Improvement Plans
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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
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Request for proposals
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ROACE
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Return on average common equity
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RORB
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Return on rate base
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RPS
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Renewable portfolio standards
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SAR
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Stock appreciation right
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SEC
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Securities and Exchange Commission
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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
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•
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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 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, the effects of the United Kingdom’s referendum to withdraw from the European Union, unrest, the conflict in Syria, terrorist acts by ISIS or others, potential conflict or crisis with North Korea and potential pandemics);
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•
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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;
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•
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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;
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•
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the timing and extent of changes in interest rates and the shape of the yield curve;
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•
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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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•
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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;
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•
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changes in laws, regulations, market conditions and other factors that result in changes in assumptions used to calculate retirement benefits costs and funding requirements;
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•
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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;
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•
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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);
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•
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the impacts of the termination of the Merger with NextEra Energy, Inc. (NEE) and the resulting loss of NEE’s resources, expertise and support (e.g., financial and technological), including potentially higher costs and longer lead times to increase levels of renewable energy and to complete projects like Enterprise Resource Planning/Enterprise Asset Management (ERP/ERM) and smart grids, and a higher cost of capital;
|
•
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the potential delay by the Public Utilities Commission of the State of Hawaii (PUC) in considering (and potential disapproval of actual or proposed) renewable energy proposals and related costs; reliance by the Utilities on outside parties such as the state, independent power producers (IPPs) and developers; and uncertainties surrounding technologies, solar power, wind power, proposed undersea cables, biofuels, environmental assessments required to meet renewable portfolio standards (RPS) goals and the impacts of implementation of the renewable energy proposals 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 proposed and being developed in response to the four orders that the 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 or modifications 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 the Utilities 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 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 September 30
|
|
Nine months ended September 30
|
||||||||||||
(in thousands, except per share amounts)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electric utility
|
|
$
|
572,253
|
|
|
$
|
648,127
|
|
|
$
|
1,549,700
|
|
|
$
|
1,779,732
|
|
Bank
|
|
73,708
|
|
|
69,091
|
|
|
213,297
|
|
|
199,222
|
|
||||
Other
|
|
94
|
|
|
(42
|
)
|
|
262
|
|
|
(4
|
)
|
||||
Total revenues
|
|
646,055
|
|
|
717,176
|
|
|
1,763,259
|
|
|
1,978,950
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electric utility
|
|
482,441
|
|
|
565,470
|
|
|
1,333,876
|
|
|
1,573,278
|
|
||||
Bank
|
|
50,981
|
|
|
48,289
|
|
|
150,752
|
|
|
138,063
|
|
||||
Other
|
|
7,191
|
|
|
6,322
|
|
|
18,883
|
|
|
28,278
|
|
||||
Total expenses
|
|
540,613
|
|
|
620,081
|
|
|
1,503,511
|
|
|
1,739,619
|
|
||||
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electric utility
|
|
89,812
|
|
|
82,657
|
|
|
215,824
|
|
|
206,454
|
|
||||
Bank
|
|
22,727
|
|
|
20,802
|
|
|
62,545
|
|
|
61,159
|
|
||||
Other
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|
(7,097
|
)
|
|
(6,364
|
)
|
|
(18,621
|
)
|
|
(28,282
|
)
|
||||
Total operating income
|
|
105,442
|
|
|
97,095
|
|
|
259,748
|
|
|
239,331
|
|
||||
Merger termination fee
|
|
90,000
|
|
|
—
|
|
|
90,000
|
|
|
—
|
|
||||
Interest expense, net—other than on deposit liabilities and other bank borrowings
|
|
(19,365
|
)
|
|
(19,229
|
)
|
|
(56,792
|
)
|
|
(57,235
|
)
|
||||
Allowance for borrowed funds used during construction
|
|
854
|
|
|
737
|
|
|
2,276
|
|
|
1,918
|
|
||||
Allowance for equity funds used during construction
|
|
2,274
|
|
|
2,057
|
|
|
6,010
|
|
|
5,366
|
|
||||
Income before income taxes
|
|
179,205
|
|
|
80,660
|
|
|
301,242
|
|
|
189,380
|
|
||||
Income taxes
|
|
51,592
|
|
|
29,516
|
|
|
96,203
|
|
|
70,406
|
|
||||
Net income
|
|
127,613
|
|
|
51,144
|
|
|
205,039
|
|
|
118,974
|
|
||||
Preferred stock dividends of subsidiaries
|
|
471
|
|
|
471
|
|
|
1,417
|
|
|
1,417
|
|
||||
Net income for common stock
|
|
$
|
127,142
|
|
|
$
|
50,673
|
|
|
$
|
203,622
|
|
|
$
|
117,557
|
|
Basic earnings per common share
|
|
$
|
1.17
|
|
|
$
|
0.47
|
|
|
$
|
1.89
|
|
|
$
|
1.11
|
|
Diluted earnings per common share
|
|
$
|
1.17
|
|
|
$
|
0.47
|
|
|
$
|
1.88
|
|
|
$
|
1.11
|
|
Dividends per common share
|
|
$
|
0.31
|
|
|
$
|
0.31
|
|
|
$
|
0.93
|
|
|
$
|
0.93
|
|
Weighted-average number of common shares outstanding
|
|
108,268
|
|
|
107,457
|
|
|
107,951
|
|
|
106,067
|
|
||||
Net effect of potentially dilutive shares
|
|
204
|
|
|
281
|
|
|
220
|
|
|
280
|
|
||||
Adjusted weighted-average shares
|
|
108,472
|
|
|
107,738
|
|
|
108,171
|
|
|
106,347
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income for common stock
|
|
$
|
127,142
|
|
|
$
|
50,673
|
|
|
$
|
203,622
|
|
|
$
|
117,557
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized gains (losses) on available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, net of (taxes) benefits of $1,417, $(2,543), $(5,413) and $(2,382) for the respective periods
|
|
(2,147
|
)
|
|
3,851
|
|
|
8,197
|
|
|
3,608
|
|
||||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of nil, nil, $238 and nil for the respective periods
|
|
—
|
|
|
—
|
|
|
(360
|
)
|
|
—
|
|
||||
Derivatives qualified as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Effective portion of foreign currency hedge net unrealized gains, net of taxes of $205, nil, $368 and nil for the respective periods
|
|
321
|
|
|
—
|
|
|
578
|
|
|
—
|
|
||||
Less: reclassification adjustment to net income, net of (taxes) benefits of $(110), $37, $(75) and $112 for the respective periods
|
|
(173
|
)
|
|
59
|
|
|
(119
|
)
|
|
177
|
|
||||
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 $2,324, $3,583, $6,943 and $10,760 for the respective periods
|
|
3,641
|
|
|
5,611
|
|
|
10,877
|
|
|
16,850
|
|
||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $2,109, $3,243, $6,327 and $9,729 for the respective periods
|
|
(3,311
|
)
|
|
(5,091
|
)
|
|
(9,934
|
)
|
|
(15,274
|
)
|
||||
Other comprehensive income (loss), net of taxes
|
|
(1,669
|
)
|
|
4,430
|
|
|
9,239
|
|
|
5,361
|
|
||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
125,473
|
|
|
$
|
55,103
|
|
|
$
|
212,861
|
|
|
$
|
122,918
|
|
(dollars in thousands)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
Assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
284,355
|
|
|
$
|
300,478
|
|
Accounts receivable and unbilled revenues, net
|
|
250,076
|
|
|
242,766
|
|
||
Available-for-sale investment securities, at fair value
|
|
996,984
|
|
|
820,648
|
|
||
Stock in Federal Home Loan Bank, at cost
|
|
11,218
|
|
|
10,678
|
|
||
Loans receivable held for investment, net
|
|
4,675,901
|
|
|
4,565,781
|
|
||
Loans held for sale, at lower of cost or fair value
|
|
26,743
|
|
|
4,631
|
|
||
Property, plant and equipment, net of accumulated depreciation of $2,416,937 and $2,339,319 at the respective dates
|
|
4,532,556
|
|
|
4,377,658
|
|
||
Regulatory assets
|
|
879,775
|
|
|
896,731
|
|
||
Other
|
|
459,187
|
|
|
480,457
|
|
||
Goodwill
|
|
82,190
|
|
|
82,190
|
|
||
Total assets
|
|
$
|
12,198,985
|
|
|
$
|
11,782,018
|
|
Liabilities and shareholders’ equity
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
134,176
|
|
|
$
|
138,523
|
|
Interest and dividends payable
|
|
27,115
|
|
|
26,042
|
|
||
Deposit liabilities
|
|
5,380,721
|
|
|
5,025,254
|
|
||
Short-term borrowings—other than bank
|
|
—
|
|
|
103,063
|
|
||
Other bank borrowings
|
|
265,388
|
|
|
328,582
|
|
||
Long-term debt, net—other than bank
|
|
1,579,065
|
|
|
1,578,368
|
|
||
Deferred income taxes
|
|
721,470
|
|
|
680,877
|
|
||
Regulatory liabilities
|
|
400,479
|
|
|
371,543
|
|
||
Contributions in aid of construction
|
|
525,491
|
|
|
506,087
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
572,933
|
|
|
589,918
|
|
||
Other
|
|
489,466
|
|
|
471,828
|
|
||
Total liabilities
|
|
10,096,304
|
|
|
9,820,085
|
|
||
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: 108,503,210 shares and 107,460,406 shares at the respective dates
|
|
1,657,421
|
|
|
1,629,136
|
|
||
Retained earnings
|
|
427,990
|
|
|
324,766
|
|
||
Accumulated other comprehensive loss, net of tax benefits
|
|
(17,023
|
)
|
|
(26,262
|
)
|
||
Total shareholders’ equity
|
|
2,068,388
|
|
|
1,927,640
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
12,198,985
|
|
|
$
|
11,782,018
|
|
|
|
Common stock
|
|
Retained
|
|
Accumulated
other
comprehensive
|
|
|
|||||||||||
(in thousands, except per share amounts)
|
|
Shares
|
|
Amount
|
|
Earnings
|
|
income (loss)
|
|
Total
|
|||||||||
Balance, December 31, 2015
|
|
107,460
|
|
|
$
|
1,629,136
|
|
|
$
|
324,766
|
|
|
$
|
(26,262
|
)
|
|
$
|
1,927,640
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
203,622
|
|
|
—
|
|
|
203,622
|
|
||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,239
|
|
|
9,239
|
|
||||
Issuance of common stock, net
|
|
1,043
|
|
|
28,285
|
|
|
—
|
|
|
—
|
|
|
28,285
|
|
||||
Common stock dividends ($0.93 per share)
|
|
—
|
|
|
—
|
|
|
(100,398
|
)
|
|
—
|
|
|
(100,398
|
)
|
||||
Balance, September 30, 2016
|
|
108,503
|
|
|
$
|
1,657,421
|
|
|
$
|
427,990
|
|
|
$
|
(17,023
|
)
|
|
$
|
2,068,388
|
|
Balance, December 31, 2014
|
|
102,565
|
|
|
$
|
1,521,297
|
|
|
$
|
296,654
|
|
|
$
|
(27,378
|
)
|
|
$
|
1,790,573
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
117,557
|
|
|
—
|
|
|
117,557
|
|
||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,361
|
|
|
5,361
|
|
||||
Issuance of common stock, net
|
|
4,894
|
|
|
105,962
|
|
|
—
|
|
|
—
|
|
|
105,962
|
|
||||
Common stock dividends ($0.93 per share)
|
|
—
|
|
|
—
|
|
|
(98,452
|
)
|
|
—
|
|
|
(98,452
|
)
|
||||
Balance, September 30, 2015
|
|
107,459
|
|
|
$
|
1,627,259
|
|
|
$
|
315,759
|
|
|
$
|
(22,017
|
)
|
|
$
|
1,921,001
|
|
Nine months ended September 30
|
|
2016
|
|
2015
|
||||
(in thousands)
|
|
|
|
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
205,039
|
|
|
$
|
118,974
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||
Depreciation of property, plant and equipment
|
|
145,684
|
|
|
137,721
|
|
||
Other amortization
|
|
7,368
|
|
|
7,252
|
|
||
Provision for loan losses
|
|
15,266
|
|
|
5,436
|
|
||
Loans receivable originated and purchased, held for sale
|
|
(172,657
|
)
|
|
(226,081
|
)
|
||
Proceeds from sale of loans receivable, held for sale
|
|
168,490
|
|
|
231,509
|
|
||
Deferred income taxes
|
|
30,667
|
|
|
2,723
|
|
||
Share-based compensation expense
|
|
3,581
|
|
|
4,780
|
|
||
Excess tax benefits from share-based payment arrangements
|
|
(398
|
)
|
|
(1,012
|
)
|
||
Allowance for equity funds used during construction
|
|
(6,010
|
)
|
|
(5,366
|
)
|
||
Impairment of utility assets
|
|
—
|
|
|
4,828
|
|
||
Other
|
|
3,234
|
|
|
3,921
|
|
||
Changes in assets and liabilities
|
|
|
|
|
|
|
||
Decrease (increase) in accounts receivable and unbilled revenues, net
|
|
(12,104
|
)
|
|
8,248
|
|
||
Decrease in fuel oil stock
|
|
6,736
|
|
|
35,942
|
|
||
Increase in regulatory assets
|
|
(2,251
|
)
|
|
(23,458
|
)
|
||
Increase (decrease) in accounts, interest and dividends payable
|
|
3,399
|
|
|
(34,171
|
)
|
||
Change in prepaid and accrued income taxes and utility revenue taxes
|
|
52,558
|
|
|
(8,458
|
)
|
||
Increase in defined benefit pension and other postretirement benefit plans liability
|
|
150
|
|
|
418
|
|
||
Change in other assets and liabilities
|
|
(39,850
|
)
|
|
(41,954
|
)
|
||
Net cash provided by operating activities
|
|
408,902
|
|
|
221,252
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
||
Available-for-sale investment securities purchased
|
|
(354,165
|
)
|
|
(326,965
|
)
|
||
Principal repayments on available-for-sale investment securities
|
|
172,829
|
|
|
96,053
|
|
||
Proceeds from sale of available-for-sale investment securities
|
|
16,423
|
|
|
—
|
|
||
Purchase of stock from Federal Home Loan Bank
|
|
(2,773
|
)
|
|
(1,600
|
)
|
||
Redemption of stock from Federal Home Loan Bank
|
|
2,233
|
|
|
60,223
|
|
||
Net increase in loans held for investment
|
|
(175,303
|
)
|
|
(101,771
|
)
|
||
Proceeds from sale of commercial loans
|
|
37,946
|
|
|
—
|
|
||
Proceeds from sale of real estate acquired in settlement of loans
|
|
829
|
|
|
1,258
|
|
||
Proceeds from sale of real estate held-for-sale
|
|
1,764
|
|
|
7,280
|
|
||
Capital expenditures
|
|
(259,207
|
)
|
|
(276,186
|
)
|
||
Contributions in aid of construction
|
|
23,568
|
|
|
34,627
|
|
||
Other
|
|
112
|
|
|
4,084
|
|
||
Net cash used in investing activities
|
|
(535,744
|
)
|
|
(502,997
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
||
Net increase in deposit liabilities
|
|
355,467
|
|
|
202,539
|
|
||
Net increase (decrease) in short-term borrowings with original maturities of three months or less
|
|
(103,063
|
)
|
|
53,020
|
|
||
Net increase (decrease) in retail repurchase agreements
|
|
(21,121
|
)
|
|
67,934
|
|
||
Proceeds from other bank borrowings
|
|
55,835
|
|
|
50,000
|
|
||
Repayments of other bank borrowings
|
|
(97,902
|
)
|
|
(40,000
|
)
|
||
Proceeds from issuance of long-term debt
|
|
75,000
|
|
|
—
|
|
||
Repayment of long-term debt
|
|
(75,000
|
)
|
|
—
|
|
||
Excess tax benefits from share-based payment arrangements
|
|
398
|
|
|
1,012
|
|
||
Net proceeds from issuance of common stock
|
|
10,901
|
|
|
104,437
|
|
||
Common stock dividends
|
|
(83,620
|
)
|
|
(98,452
|
)
|
||
Preferred stock dividends of subsidiaries
|
|
(1,417
|
)
|
|
(1,417
|
)
|
||
Other
|
|
(4,759
|
)
|
|
(4,453
|
)
|
||
Net cash provided by financing activities
|
|
110,719
|
|
|
334,620
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(16,123
|
)
|
|
52,875
|
|
||
Cash and cash equivalents, beginning of period
|
|
300,478
|
|
|
175,542
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
284,355
|
|
|
$
|
228,417
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues
|
|
$
|
572,253
|
|
|
$
|
648,127
|
|
|
$
|
1,549,700
|
|
|
$
|
1,779,732
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuel oil
|
|
128,624
|
|
|
195,633
|
|
|
334,263
|
|
|
518,670
|
|
||||
Purchased power
|
|
157,750
|
|
|
160,518
|
|
|
412,667
|
|
|
445,809
|
|
||||
Other operation and maintenance
|
|
94,789
|
|
|
103,653
|
|
|
298,260
|
|
|
306,519
|
|
||||
Depreciation
|
|
46,759
|
|
|
44,356
|
|
|
140,300
|
|
|
132,840
|
|
||||
Taxes, other than income taxes
|
|
54,519
|
|
|
61,310
|
|
|
148,386
|
|
|
169,440
|
|
||||
Total expenses
|
|
482,441
|
|
|
565,470
|
|
|
1,333,876
|
|
|
1,573,278
|
|
||||
Operating income
|
|
89,812
|
|
|
82,657
|
|
|
215,824
|
|
|
206,454
|
|
||||
Allowance for equity funds used during construction
|
|
2,274
|
|
|
2,057
|
|
|
6,010
|
|
|
5,366
|
|
||||
Interest expense and other charges, net
|
|
(17,323
|
)
|
|
(16,557
|
)
|
|
(49,734
|
)
|
|
(49,170
|
)
|
||||
Allowance for borrowed funds used during construction
|
|
854
|
|
|
737
|
|
|
2,276
|
|
|
1,918
|
|
||||
Income before income taxes
|
|
75,617
|
|
|
68,894
|
|
|
174,376
|
|
|
164,568
|
|
||||
Income taxes
|
|
28,145
|
|
|
25,390
|
|
|
64,682
|
|
|
60,351
|
|
||||
Net income
|
|
47,472
|
|
|
43,504
|
|
|
109,694
|
|
|
104,217
|
|
||||
Preferred stock dividends of subsidiaries
|
|
228
|
|
|
228
|
|
|
686
|
|
|
686
|
|
||||
Net income attributable to Hawaiian Electric
|
|
47,244
|
|
|
43,276
|
|
|
109,008
|
|
|
103,531
|
|
||||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
270
|
|
|
810
|
|
|
810
|
|
||||
Net income for common stock
|
|
$
|
46,974
|
|
|
$
|
43,006
|
|
|
$
|
108,198
|
|
|
$
|
102,721
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income for common stock
|
|
$
|
46,974
|
|
|
$
|
43,006
|
|
|
$
|
108,198
|
|
|
$
|
102,721
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives qualified as cash flow hedges:
|
|
|
|
|
|
|
|
|
||||||||
Effective portion of foreign currency hedge net unrealized gains, net of taxes of $205, nil, $368 and nil for the respective periods
|
|
321
|
|
|
—
|
|
|
578
|
|
|
—
|
|
||||
Less: reclassification adjustment to net income, net of taxes of $110, nil, $110 and nil for the respective periods
|
|
(173
|
)
|
|
—
|
|
|
(173
|
)
|
|
—
|
|
||||
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 $2,110, $3,245, $6,331 and $9,735 for the respective periods
|
|
3,314
|
|
|
5,095
|
|
|
9,941
|
|
|
15,285
|
|
||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $2,109, $3,243, $6,327 and $9,729 for the respective periods
|
|
(3,311
|
)
|
|
(5,091
|
)
|
|
(9,934
|
)
|
|
(15,274
|
)
|
||||
Other comprehensive income (loss), net of taxes
|
|
151
|
|
|
4
|
|
|
412
|
|
|
11
|
|
||||
Comprehensive income attributable to Hawaiian Electric Company, Inc.
|
|
$
|
47,125
|
|
|
$
|
43,010
|
|
|
$
|
108,610
|
|
|
$
|
102,732
|
|
(dollars in thousands, except par value)
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
Assets
|
|
|
|
|
|
|
||
Property, plant and equipment
|
|
|
|
|
||||
Utility property, plant and equipment
|
|
|
|
|
|
|
||
Land
|
|
$
|
53,175
|
|
|
$
|
52,792
|
|
Plant and equipment
|
|
6,483,562
|
|
|
6,315,698
|
|
||
Less accumulated depreciation
|
|
(2,343,601
|
)
|
|
(2,266,004
|
)
|
||
Construction in progress
|
|
236,608
|
|
|
175,309
|
|
||
Utility property, plant and equipment, net
|
|
4,429,744
|
|
|
4,277,795
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation of $1,231 and $1,229 at respective dates
|
|
7,374
|
|
|
7,272
|
|
||
Total property, plant and equipment, net
|
|
4,437,118
|
|
|
4,285,067
|
|
||
Current assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
22,977
|
|
|
24,449
|
|
||
Customer accounts receivable, net
|
|
134,418
|
|
|
132,778
|
|
||
Accrued unbilled revenues, net
|
|
95,167
|
|
|
84,509
|
|
||
Other accounts receivable, net
|
|
4,629
|
|
|
10,408
|
|
||
Fuel oil stock, at average cost
|
|
64,480
|
|
|
71,216
|
|
||
Materials and supplies, at average cost
|
|
57,356
|
|
|
54,429
|
|
||
Prepayments and other
|
|
35,645
|
|
|
36,640
|
|
||
Regulatory assets
|
|
74,681
|
|
|
72,231
|
|
||
Total current assets
|
|
489,353
|
|
|
486,660
|
|
||
Other long-term assets
|
|
|
|
|
|
|
||
Regulatory assets
|
|
805,094
|
|
|
824,500
|
|
||
Unamortized debt expense
|
|
267
|
|
|
497
|
|
||
Other
|
|
68,994
|
|
|
75,486
|
|
||
Total other long-term assets
|
|
874,355
|
|
|
900,483
|
|
||
Total assets
|
|
$
|
5,800,826
|
|
|
$
|
5,672,210
|
|
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
|
|
578,921
|
|
|
578,930
|
|
||
Retained earnings
|
|
1,081,081
|
|
|
1,043,082
|
|
||
Accumulated other comprehensive income, net of income taxes
|
|
1,337
|
|
|
925
|
|
||
Common stock equity
|
|
1,766,727
|
|
|
1,728,325
|
|
||
Cumulative preferred stock — not subject to mandatory redemption
|
|
34,293
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
1,279,327
|
|
|
1,278,702
|
|
||
Total capitalization
|
|
3,080,347
|
|
|
3,041,320
|
|
||
Commitments and contingencies (Note 4)
|
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
|
||
Short-term borrowings from affiliates
|
|
21,000
|
|
|
—
|
|
||
Accounts payable
|
|
107,497
|
|
|
114,846
|
|
||
Interest and preferred dividends payable
|
|
25,934
|
|
|
23,111
|
|
||
Taxes accrued
|
|
167,276
|
|
|
191,084
|
|
||
Regulatory liabilities
|
|
2,987
|
|
|
2,204
|
|
||
Other
|
|
56,753
|
|
|
54,079
|
|
||
Total current liabilities
|
|
381,447
|
|
|
385,324
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
||
Deferred income taxes
|
|
714,559
|
|
|
654,806
|
|
||
Regulatory liabilities
|
|
397,492
|
|
|
369,339
|
|
||
Unamortized tax credits
|
|
87,794
|
|
|
84,214
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
535,912
|
|
|
552,974
|
|
||
Other
|
|
77,784
|
|
|
78,146
|
|
||
Total deferred credits and other liabilities
|
|
1,813,541
|
|
|
1,739,479
|
|
||
Contributions in aid of construction
|
|
525,491
|
|
|
506,087
|
|
||
Total capitalization and liabilities
|
|
$
|
5,800,826
|
|
|
$
|
5,672,210
|
|
|
|
Common stock
|
|
Premium
on
capital
|
|
Retained
|
|
Accumulated
other
comprehensive
|
|
|
|||||||||||||
(in thousands)
|
|
Shares
|
|
Amount
|
|
stock
|
|
earnings
|
|
income (loss)
|
|
Total
|
|||||||||||
Balance, December 31, 2015
|
|
15,805
|
|
|
$
|
105,388
|
|
|
$
|
578,930
|
|
|
$
|
1,043,082
|
|
|
$
|
925
|
|
|
$
|
1,728,325
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
108,198
|
|
|
—
|
|
|
108,198
|
|
|||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
412
|
|
|
412
|
|
|||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(70,199
|
)
|
|
—
|
|
|
(70,199
|
)
|
|||||
Common stock issuance expenses
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||||
Balance, September 30, 2016
|
|
15,805
|
|
|
$
|
105,388
|
|
|
$
|
578,921
|
|
|
$
|
1,081,081
|
|
|
$
|
1,337
|
|
|
$
|
1,766,727
|
|
Balance, December 31, 2014
|
|
15,805
|
|
|
$
|
105,388
|
|
|
$
|
578,938
|
|
|
$
|
997,773
|
|
|
$
|
45
|
|
|
$
|
1,682,144
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102,721
|
|
|
—
|
|
|
102,721
|
|
|||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(67,804
|
)
|
|
—
|
|
|
(67,804
|
)
|
|||||
Common stock issuance expenses
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Balance, September 30, 2015
|
|
15,805
|
|
|
$
|
105,388
|
|
|
$
|
578,930
|
|
|
$
|
1,032,690
|
|
|
$
|
56
|
|
|
$
|
1,717,064
|
|
Nine months ended September 30
|
|
2016
|
|
2015
|
||||
(in thousands)
|
|
|
|
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
109,694
|
|
|
$
|
104,217
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||
Depreciation of property, plant and equipment
|
|
140,300
|
|
|
132,840
|
|
||
Other amortization
|
|
5,380
|
|
|
4,999
|
|
||
Deferred income taxes
|
|
55,648
|
|
|
58,211
|
|
||
Tax credits, net
|
|
5,256
|
|
|
4,247
|
|
||
Allowance for equity funds used during construction
|
|
(6,010
|
)
|
|
(5,366
|
)
|
||
Impairment of utility assets
|
|
—
|
|
|
4,828
|
|
||
Other
|
|
(2,022
|
)
|
|
(326
|
)
|
||
Changes in assets and liabilities
|
|
|
|
|
|
|
||
Increase in accounts receivable
|
|
(655
|
)
|
|
(4,464
|
)
|
||
Decrease (increase) in accrued unbilled revenues
|
|
(10,658
|
)
|
|
13,796
|
|
||
Decrease in fuel oil stock
|
|
6,736
|
|
|
35,942
|
|
||
Increase in materials and supplies
|
|
(2,927
|
)
|
|
(1,723
|
)
|
||
Increase in regulatory assets
|
|
(2,251
|
)
|
|
(23,458
|
)
|
||
Decrease in accounts payable
|
|
(676
|
)
|
|
(40,375
|
)
|
||
Change in prepaid and accrued income taxes and revenue taxes
|
|
(9,595
|
)
|
|
(61,635
|
)
|
||
Increase in defined benefit pension and other postretirement benefit plans liability
|
|
360
|
|
|
331
|
|
||
Change in other assets and liabilities
|
|
(13,309
|
)
|
|
(20,478
|
)
|
||
Net cash provided by operating activities
|
|
275,271
|
|
|
201,586
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(250,704
|
)
|
|
(265,521
|
)
|
||
Contributions in aid of construction
|
|
23,568
|
|
|
34,627
|
|
||
Other
|
|
1,100
|
|
|
778
|
|
||
Net cash used in investing activities
|
|
(226,036
|
)
|
|
(230,116
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
||
Common stock dividends
|
|
(70,199
|
)
|
|
(67,804
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(1,496
|
)
|
|
(1,496
|
)
|
||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
21,000
|
|
|
94,995
|
|
||
Other
|
|
(12
|
)
|
|
(223
|
)
|
||
Net cash provided by (used in) financing activities
|
|
(50,707
|
)
|
|
25,472
|
|
||
Net decrease in cash and cash equivalents
|
|
(1,472
|
)
|
|
(3,058
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
24,449
|
|
|
13,762
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
22,977
|
|
|
$
|
10,704
|
|
(in thousands)
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
||||||||
Three months ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
572,208
|
|
|
$
|
73,708
|
|
|
$
|
139
|
|
|
$
|
646,055
|
|
Intersegment revenues (eliminations)
|
|
45
|
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
||||
Revenues
|
|
572,253
|
|
|
73,708
|
|
|
94
|
|
|
646,055
|
|
||||
Income (loss) before income taxes
|
|
75,617
|
|
|
22,727
|
|
|
80,861
|
|
|
179,205
|
|
||||
Income taxes (benefit)
|
|
28,145
|
|
|
7,623
|
|
|
15,824
|
|
|
51,592
|
|
||||
Net income (loss)
|
|
47,472
|
|
|
15,104
|
|
|
65,037
|
|
|
127,613
|
|
||||
Preferred stock dividends of subsidiaries
|
|
498
|
|
|
—
|
|
|
(27
|
)
|
|
471
|
|
||||
Net income (loss) for common stock
|
|
46,974
|
|
|
15,104
|
|
|
65,064
|
|
|
127,142
|
|
||||
Nine months ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
1,549,602
|
|
|
$
|
213,297
|
|
|
$
|
360
|
|
|
$
|
1,763,259
|
|
Intersegment revenues (eliminations)
|
|
98
|
|
|
—
|
|
|
(98
|
)
|
|
—
|
|
||||
Revenues
|
|
1,549,700
|
|
|
213,297
|
|
|
262
|
|
|
1,763,259
|
|
||||
Income (loss) before income taxes
|
|
174,376
|
|
|
62,545
|
|
|
64,321
|
|
|
301,242
|
|
||||
Income taxes (benefit)
|
|
64,682
|
|
|
21,483
|
|
|
10,038
|
|
|
96,203
|
|
||||
Net income (loss)
|
|
109,694
|
|
|
41,062
|
|
|
54,283
|
|
|
205,039
|
|
||||
Preferred stock dividends of subsidiaries
|
|
1,496
|
|
|
—
|
|
|
(79
|
)
|
|
1,417
|
|
||||
Net income (loss) for common stock
|
|
108,198
|
|
|
41,062
|
|
|
54,362
|
|
|
203,622
|
|
||||
Total assets (at September 30, 2016)
|
|
5,800,826
|
|
|
6,336,670
|
|
|
61,489
|
|
|
12,198,985
|
|
||||
Three months ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
648,121
|
|
|
$
|
69,091
|
|
|
$
|
(36
|
)
|
|
$
|
717,176
|
|
Intersegment revenues (eliminations)
|
|
6
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
||||
Revenues
|
|
648,127
|
|
|
69,091
|
|
|
(42
|
)
|
|
717,176
|
|
||||
Income (loss) before income taxes
|
|
68,894
|
|
|
20,802
|
|
|
(9,036
|
)
|
|
80,660
|
|
||||
Income taxes (benefit)
|
|
25,390
|
|
|
7,351
|
|
|
(3,225
|
)
|
|
29,516
|
|
||||
Net income (loss)
|
|
43,504
|
|
|
13,451
|
|
|
(5,811
|
)
|
|
51,144
|
|
||||
Preferred stock dividends of subsidiaries
|
|
498
|
|
|
—
|
|
|
(27
|
)
|
|
471
|
|
||||
Net income (loss) for common stock
|
|
43,006
|
|
|
13,451
|
|
|
(5,784
|
)
|
|
50,673
|
|
||||
Nine months ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
1,779,708
|
|
|
$
|
199,222
|
|
|
$
|
20
|
|
|
$
|
1,978,950
|
|
Intersegment revenues (eliminations)
|
|
24
|
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
||||
Revenues
|
|
1,779,732
|
|
|
199,222
|
|
|
(4
|
)
|
|
1,978,950
|
|
||||
Income (loss) before income taxes
|
|
164,568
|
|
|
61,159
|
|
|
(36,347
|
)
|
|
189,380
|
|
||||
Income taxes (benefit)
|
|
60,351
|
|
|
21,382
|
|
|
(11,327
|
)
|
|
70,406
|
|
||||
Net income (loss)
|
|
104,217
|
|
|
39,777
|
|
|
(25,020
|
)
|
|
118,974
|
|
||||
Preferred stock dividends of subsidiaries
|
|
1,496
|
|
|
—
|
|
|
(79
|
)
|
|
1,417
|
|
||||
Net income (loss) for common stock
|
|
102,721
|
|
|
39,777
|
|
|
(24,941
|
)
|
|
117,557
|
|
||||
Total assets (at December 31, 2015)*
|
|
5,672,210
|
|
|
6,014,755
|
|
|
95,053
|
|
|
11,782,018
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
AES Hawaii
|
|
$
|
38
|
|
|
$
|
37
|
|
|
$
|
112
|
|
|
$
|
97
|
|
Kalaeloa
|
|
44
|
|
|
51
|
|
|
109
|
|
|
143
|
|
||||
HEP
|
|
8
|
|
|
13
|
|
|
23
|
|
|
34
|
|
||||
Hpower
|
|
19
|
|
|
18
|
|
|
52
|
|
|
50
|
|
||||
Puna Geothermal Venture
|
|
7
|
|
|
8
|
|
|
19
|
|
|
22
|
|
||||
Hawaiian Commercial & Sugar (HC&S)
|
|
1
|
|
|
2
|
|
|
1
|
|
|
7
|
|
||||
Other IPPs
|
|
41
|
|
|
32
|
|
|
97
|
|
|
93
|
|
||||
Total IPPs
|
|
$
|
158
|
|
|
$
|
161
|
|
|
$
|
413
|
|
|
$
|
446
|
|
|
|
Nine months ended September 30
|
||||||
(in thousands)
|
|
2016
|
|
2015
|
||||
Balance, beginning of period
|
|
$
|
26,848
|
|
|
$
|
29,419
|
|
Accretion expense
|
|
10
|
|
|
18
|
|
||
Liabilities incurred
|
|
—
|
|
|
—
|
|
||
Liabilities settled
|
|
(661
|
)
|
|
(2,349
|
)
|
||
Revisions in estimated cash flows
|
|
—
|
|
|
—
|
|
||
Balance, end of period
|
|
$
|
26,197
|
|
|
$
|
27,088
|
|
•
|
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
|
|
$
|
11.0
|
|
|
$
|
2.3
|
|
|
$
|
2.4
|
|
Annual change in accrued earnings sharing credits
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.5
|
|
Annual change in accrued RBA balance as of December 31, 2015 (and associated revenue taxes)
|
|
$
|
(13.6
|
)
|
|
$
|
(2.5
|
)
|
|
$
|
(4.3
|
)
|
Net annual incremental decrease in amount to be collected under the tariffs
|
|
$
|
(2.6
|
)
|
|
$
|
(0.2
|
)
|
|
$
|
(1.4
|
)
|
Impact on typical residential customer monthly bill (in dollars) *
|
|
$
|
0.01
|
|
|
$
|
0.13
|
|
|
$
|
(0.95
|
)
|
•
|
Distributed Generation Interconnection Plan - 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 - the Utilities’ Plan was filed in June 2014.
|
•
|
Action Plan for improving efficiencies in the interconnection requirements studies - the Utilities’ Plan was filed in May 2014.
|
•
|
The Utilities are to file monthly reports providing details about interconnection requirements studies.
|
•
|
Integrated interconnection queue for each distribution circuit for each island grid - the Utilities’ integrated interconnection queue plan was filed in August 2014 and the integrated interconnection queues were implemented in January 2015.
|
(1)
|
new pricing provisions for future rooftop photovoltaic (PV) systems,
|
(2)
|
technical standards for advanced inverters,
|
(3)
|
new options for customers including battery-equipped rooftop PV systems,
|
(4)
|
a pilot time-of-use rate,
|
(5)
|
an improved method of calculating the amount of rooftop PV that can be safely installed, and
|
(6)
|
a streamlined and standardized PV application process.
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
(dollars in thousands)
|
|
Notional amount
|
|
Fair value
|
|
Notional amount
|
|
Fair value
|
||||||||
Window forward contract
|
|
$
|
20,725
|
|
|
$
|
664
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Revenues
|
|
$
|
404,352
|
|
|
83,105
|
|
|
84,831
|
|
|
—
|
|
|
(35
|
)
|
|
$
|
572,253
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
88,676
|
|
|
14,603
|
|
|
25,345
|
|
|
—
|
|
|
—
|
|
|
128,624
|
|
||
Purchased power
|
|
118,751
|
|
|
22,728
|
|
|
16,271
|
|
|
—
|
|
|
—
|
|
|
157,750
|
|
||
Other operation and maintenance
|
|
64,683
|
|
|
15,017
|
|
|
15,089
|
|
|
—
|
|
|
—
|
|
|
94,789
|
|
||
Depreciation
|
|
31,520
|
|
|
9,449
|
|
|
5,790
|
|
|
—
|
|
|
—
|
|
|
46,759
|
|
||
Taxes, other than income taxes
|
|
38,666
|
|
|
7,836
|
|
|
8,017
|
|
|
—
|
|
|
—
|
|
|
54,519
|
|
||
Total expenses
|
|
342,296
|
|
|
69,633
|
|
|
70,512
|
|
|
—
|
|
|
—
|
|
|
482,441
|
|
||
Operating income
|
|
62,056
|
|
|
13,472
|
|
|
14,319
|
|
|
—
|
|
|
(35
|
)
|
|
89,812
|
|
||
Allowance for equity funds used during construction
|
|
1,806
|
|
|
238
|
|
|
230
|
|
|
—
|
|
|
—
|
|
|
2,274
|
|
||
Equity in earnings of subsidiaries
|
|
14,729
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,729
|
)
|
|
—
|
|
||
Interest expense and other charges, net
|
|
(11,903
|
)
|
|
(2,972
|
)
|
|
(2,483
|
)
|
|
—
|
|
|
35
|
|
|
(17,323
|
)
|
||
Allowance for borrowed funds used during construction
|
|
669
|
|
|
91
|
|
|
94
|
|
|
—
|
|
|
—
|
|
|
854
|
|
||
Income before income taxes
|
|
67,357
|
|
|
10,829
|
|
|
12,160
|
|
|
—
|
|
|
(14,729
|
)
|
|
75,617
|
|
||
Income taxes
|
|
20,113
|
|
|
3,392
|
|
|
4,640
|
|
|
—
|
|
|
—
|
|
|
28,145
|
|
||
Net income
|
|
47,244
|
|
|
7,437
|
|
|
7,520
|
|
|
—
|
|
|
(14,729
|
)
|
|
47,472
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
133
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
228
|
|
||
Net income attributable to Hawaiian Electric
|
|
47,244
|
|
|
7,304
|
|
|
7,425
|
|
|
—
|
|
|
(14,729
|
)
|
|
47,244
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
||
Net income for common stock
|
|
$
|
46,974
|
|
|
7,304
|
|
|
7,425
|
|
|
—
|
|
|
(14,729
|
)
|
|
$
|
46,974
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income for common stock
|
|
$
|
46,974
|
|
|
7,304
|
|
|
7,425
|
|
|
—
|
|
|
(14,729
|
)
|
|
$
|
46,974
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Derivatives qualified as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Effective portion of foreign currency hedge net unrealized loss, net of tax benefits
|
|
321
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
321
|
|
||
Less: reclassification adjustment to net income, net of tax benefits
|
|
(173
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(173
|
)
|
||
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
|
|
3,314
|
|
|
429
|
|
|
387
|
|
|
—
|
|
|
(816
|
)
|
|
3,314
|
|
||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(3,311
|
)
|
|
(429
|
)
|
|
(389
|
)
|
|
—
|
|
|
818
|
|
|
(3,311
|
)
|
||
Other comprehensive income (loss), net of taxes
|
|
151
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
2
|
|
|
151
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
47,125
|
|
|
7,304
|
|
|
7,423
|
|
|
—
|
|
|
(14,727
|
)
|
|
$
|
47,125
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Revenues
|
|
$
|
463,394
|
|
|
89,817
|
|
|
94,941
|
|
|
—
|
|
|
(25
|
)
|
|
$
|
648,127
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
142,194
|
|
|
17,208
|
|
|
36,231
|
|
|
—
|
|
|
—
|
|
|
195,633
|
|
||
Purchased power
|
|
119,302
|
|
|
26,713
|
|
|
14,503
|
|
|
—
|
|
|
—
|
|
|
160,518
|
|
||
Other operation and maintenance
|
|
69,621
|
|
|
18,936
|
|
|
15,096
|
|
|
—
|
|
|
—
|
|
|
103,653
|
|
||
Depreciation
|
|
29,389
|
|
|
9,313
|
|
|
5,654
|
|
|
—
|
|
|
—
|
|
|
44,356
|
|
||
Taxes, other than income taxes
|
|
43,923
|
|
|
8,455
|
|
|
8,932
|
|
|
—
|
|
|
—
|
|
|
61,310
|
|
||
Total expenses
|
|
404,429
|
|
|
80,625
|
|
|
80,416
|
|
|
—
|
|
|
—
|
|
|
565,470
|
|
||
Operating income
|
|
58,965
|
|
|
9,192
|
|
|
14,525
|
|
|
—
|
|
|
(25
|
)
|
|
82,657
|
|
||
Allowance for equity funds used during construction
|
|
1,714
|
|
|
148
|
|
|
195
|
|
|
—
|
|
|
—
|
|
|
2,057
|
|
||
Equity in earnings of subsidiaries
|
|
11,858
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,858
|
)
|
|
—
|
|
||
Interest expense and other charges, net
|
|
(11,468
|
)
|
|
(2,674
|
)
|
|
(2,440
|
)
|
|
—
|
|
|
25
|
|
|
(16,557
|
)
|
||
Allowance for borrowed funds used during construction
|
|
605
|
|
|
53
|
|
|
79
|
|
|
—
|
|
|
—
|
|
|
737
|
|
||
Income before income taxes
|
|
61,674
|
|
|
6,719
|
|
|
12,359
|
|
|
—
|
|
|
(11,858
|
)
|
|
68,894
|
|
||
Income taxes
|
|
18,398
|
|
|
2,397
|
|
|
4,595
|
|
|
—
|
|
|
—
|
|
|
25,390
|
|
||
Net income
|
|
43,276
|
|
|
4,322
|
|
|
7,764
|
|
|
—
|
|
|
(11,858
|
)
|
|
43,504
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
133
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
228
|
|
||
Net income attributable to Hawaiian Electric
|
|
43,276
|
|
|
4,189
|
|
|
7,669
|
|
|
—
|
|
|
(11,858
|
)
|
|
43,276
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
||
Net income for common stock
|
|
$
|
43,006
|
|
|
4,189
|
|
|
7,669
|
|
|
—
|
|
|
(11,858
|
)
|
|
$
|
43,006
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income
for common stock
|
|
$
|
43,006
|
|
|
4,189
|
|
|
7,669
|
|
|
—
|
|
|
(11,858
|
)
|
|
$
|
43,006
|
|
Other comprehensive income (loss), 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
|
|
5,095
|
|
|
682
|
|
|
626
|
|
|
—
|
|
|
(1,308
|
)
|
|
5,095
|
|
||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(5,091
|
)
|
|
(683
|
)
|
|
(627
|
)
|
|
—
|
|
|
1,310
|
|
|
(5,091
|
)
|
||
Other comprehensive income (loss), net of taxes
|
|
4
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
2
|
|
|
4
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
43,010
|
|
|
4,188
|
|
|
7,668
|
|
|
—
|
|
|
(11,856
|
)
|
|
$
|
43,010
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Revenues
|
|
$
|
1,088,537
|
|
|
229,940
|
|
|
231,295
|
|
|
—
|
|
|
(72
|
)
|
|
$
|
1,549,700
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
224,995
|
|
|
40,725
|
|
|
68,543
|
|
|
—
|
|
|
—
|
|
|
334,263
|
|
||
Purchased power
|
|
313,730
|
|
|
58,885
|
|
|
40,052
|
|
|
—
|
|
|
—
|
|
|
412,667
|
|
||
Other operation and maintenance
|
|
202,438
|
|
|
46,574
|
|
|
49,248
|
|
|
—
|
|
|
—
|
|
|
298,260
|
|
||
Depreciation
|
|
94,564
|
|
|
28,347
|
|
|
17,389
|
|
|
—
|
|
|
—
|
|
|
140,300
|
|
||
Taxes, other than income taxes
|
|
104,764
|
|
|
21,632
|
|
|
21,990
|
|
|
—
|
|
|
—
|
|
|
148,386
|
|
||
Total expenses
|
|
940,491
|
|
|
196,163
|
|
|
197,222
|
|
|
—
|
|
|
—
|
|
|
1,333,876
|
|
||
Operating income
|
|
148,046
|
|
|
33,777
|
|
|
34,073
|
|
|
—
|
|
|
(72
|
)
|
|
215,824
|
|
||
Allowance for equity funds used during construction
|
|
4,771
|
|
|
571
|
|
|
668
|
|
|
—
|
|
|
—
|
|
|
6,010
|
|
||
Equity in earnings of subsidiaries
|
|
33,541
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33,541
|
)
|
|
—
|
|
||
Interest expense and other charges, net
|
|
(34,113
|
)
|
|
(8,606
|
)
|
|
(7,087
|
)
|
|
—
|
|
|
72
|
|
|
(49,734
|
)
|
||
Allowance for borrowed funds used during construction
|
|
1,785
|
|
|
219
|
|
|
272
|
|
|
—
|
|
|
—
|
|
|
2,276
|
|
||
Income before income taxes
|
|
154,030
|
|
|
25,961
|
|
|
27,926
|
|
|
—
|
|
|
(33,541
|
)
|
|
174,376
|
|
||
Income taxes
|
|
45,022
|
|
|
9,075
|
|
|
10,585
|
|
|
—
|
|
|
—
|
|
|
64,682
|
|
||
Net income
|
|
109,008
|
|
|
16,886
|
|
|
17,341
|
|
|
—
|
|
|
(33,541
|
)
|
|
109,694
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
400
|
|
|
286
|
|
|
—
|
|
|
—
|
|
|
686
|
|
||
Net income attributable to Hawaiian Electric
|
|
109,008
|
|
|
16,486
|
|
|
17,055
|
|
|
—
|
|
|
(33,541
|
)
|
|
109,008
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
810
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
810
|
|
||
Net income for common stock
|
|
$
|
108,198
|
|
|
16,486
|
|
|
17,055
|
|
|
—
|
|
|
(33,541
|
)
|
|
$
|
108,198
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income for common stock
|
|
$
|
108,198
|
|
|
16,486
|
|
|
17,055
|
|
|
—
|
|
|
(33,541
|
)
|
|
$
|
108,198
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Derivatives qualified as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Effective portion of foreign currency hedge net unrealized gain, net of taxes
|
|
578
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
578
|
|
||
Less: reclassification adjustment to net income, net of tax benefits
|
|
(173
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(173
|
)
|
||
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
|
|
9,941
|
|
|
1,288
|
|
|
1,162
|
|
|
—
|
|
|
(2,450
|
)
|
|
9,941
|
|
||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(9,934
|
)
|
|
(1,289
|
)
|
|
(1,166
|
)
|
|
—
|
|
|
2,455
|
|
|
(9,934
|
)
|
||
Other comprehensive income (loss), net of taxes
|
|
412
|
|
|
(1
|
)
|
|
(4
|
)
|
|
—
|
|
|
5
|
|
|
412
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
108,610
|
|
|
16,485
|
|
|
17,051
|
|
|
—
|
|
|
(33,536
|
)
|
|
$
|
108,610
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Revenues
|
|
$
|
1,254,142
|
|
|
261,604
|
|
|
264,057
|
|
|
—
|
|
|
(71
|
)
|
|
$
|
1,779,732
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
364,875
|
|
|
56,834
|
|
|
96,961
|
|
|
—
|
|
|
—
|
|
|
518,670
|
|
||
Purchased power
|
|
329,922
|
|
|
73,161
|
|
|
42,726
|
|
|
—
|
|
|
—
|
|
|
445,809
|
|
||
Other operation and maintenance
|
|
206,133
|
|
|
51,493
|
|
|
48,893
|
|
|
—
|
|
|
—
|
|
|
306,519
|
|
||
Depreciation
|
|
88,167
|
|
|
27,938
|
|
|
16,735
|
|
|
—
|
|
|
—
|
|
|
132,840
|
|
||
Taxes, other than income taxes
|
|
119,603
|
|
|
24,783
|
|
|
25,054
|
|
|
—
|
|
|
—
|
|
|
169,440
|
|
||
Total expenses
|
|
1,108,700
|
|
|
234,209
|
|
|
230,369
|
|
|
—
|
|
|
—
|
|
|
1,573,278
|
|
||
Operating income
|
|
145,442
|
|
|
27,395
|
|
|
33,688
|
|
|
—
|
|
|
(71
|
)
|
|
206,454
|
|
||
Allowance for equity funds used during construction
|
|
4,418
|
|
|
458
|
|
|
490
|
|
|
—
|
|
|
—
|
|
|
5,366
|
|
||
Equity in earnings of subsidiaries
|
|
29,174
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,174
|
)
|
|
—
|
|
||
Interest expense and other charges, net
|
|
(33,996
|
)
|
|
(7,946
|
)
|
|
(7,299
|
)
|
|
—
|
|
|
71
|
|
|
(49,170
|
)
|
||
Allowance for borrowed funds used during construction
|
|
1,557
|
|
|
164
|
|
|
197
|
|
|
—
|
|
|
—
|
|
|
1,918
|
|
||
Income before income taxes
|
|
146,595
|
|
|
20,071
|
|
|
27,076
|
|
|
—
|
|
|
(29,174
|
)
|
|
164,568
|
|
||
Income taxes
|
|
43,064
|
|
|
7,210
|
|
|
10,077
|
|
|
—
|
|
|
—
|
|
|
60,351
|
|
||
Net income
|
|
103,531
|
|
|
12,861
|
|
|
16,999
|
|
|
—
|
|
|
(29,174
|
)
|
|
104,217
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
400
|
|
|
286
|
|
|
—
|
|
|
—
|
|
|
686
|
|
||
Net income attributable to Hawaiian Electric
|
|
103,531
|
|
|
12,461
|
|
|
16,713
|
|
|
—
|
|
|
(29,174
|
)
|
|
103,531
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
810
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
810
|
|
||
Net income for common stock
|
|
$
|
102,721
|
|
|
12,461
|
|
|
16,713
|
|
|
—
|
|
|
(29,174
|
)
|
|
$
|
102,721
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income
for common stock
|
|
$
|
102,721
|
|
|
12,461
|
|
|
16,713
|
|
|
—
|
|
|
(29,174
|
)
|
|
$
|
102,721
|
|
Other comprehensive income (loss), 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
|
|
15,285
|
|
|
2,046
|
|
|
1,878
|
|
|
—
|
|
|
(3,924
|
)
|
|
15,285
|
|
||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(15,274
|
)
|
|
(2,050
|
)
|
|
(1,882
|
)
|
|
—
|
|
|
3,932
|
|
|
(15,274
|
)
|
||
Other comprehensive income (loss), net of taxes
|
|
11
|
|
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|
8
|
|
|
11
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
102,732
|
|
|
12,457
|
|
|
16,709
|
|
|
—
|
|
|
(29,166
|
)
|
|
$
|
102,732
|
|
(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
|
|
$
|
43,945
|
|
|
6,214
|
|
|
3,016
|
|
|
—
|
|
|
—
|
|
|
$
|
53,175
|
|
Plant and equipment
|
|
4,148,099
|
|
|
1,234,234
|
|
|
1,101,229
|
|
|
—
|
|
|
—
|
|
|
6,483,562
|
|
||
Less accumulated depreciation
|
|
(1,362,474
|
)
|
|
(503,109
|
)
|
|
(478,018
|
)
|
|
—
|
|
|
—
|
|
|
(2,343,601
|
)
|
||
Construction in progress
|
|
197,715
|
|
|
18,503
|
|
|
20,390
|
|
|
—
|
|
|
—
|
|
|
236,608
|
|
||
Utility property, plant and equipment, net
|
|
3,027,285
|
|
|
755,842
|
|
|
646,617
|
|
|
—
|
|
|
—
|
|
|
4,429,744
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation
|
|
5,761
|
|
|
82
|
|
|
1,531
|
|
|
—
|
|
|
—
|
|
|
7,374
|
|
||
Total property, plant and equipment, net
|
|
3,033,046
|
|
|
755,924
|
|
|
648,148
|
|
|
—
|
|
|
—
|
|
|
4,437,118
|
|
||
Investment in wholly owned subsidiaries, at equity
|
|
570,358
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(570,358
|
)
|
|
—
|
|
||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
9,821
|
|
|
7,008
|
|
|
6,047
|
|
|
101
|
|
|
—
|
|
|
22,977
|
|
||
Advances to affiliates
|
|
—
|
|
|
18,500
|
|
|
15,500
|
|
|
—
|
|
|
(34,000
|
)
|
|
—
|
|
||
Customer accounts receivable, net
|
|
93,253
|
|
|
21,646
|
|
|
19,519
|
|
|
—
|
|
|
—
|
|
|
134,418
|
|
||
Accrued unbilled revenues, net
|
|
69,753
|
|
|
12,904
|
|
|
12,510
|
|
|
—
|
|
|
—
|
|
|
95,167
|
|
||
Other accounts receivable, net
|
|
11,469
|
|
|
2,852
|
|
|
2,316
|
|
|
—
|
|
|
(12,008
|
)
|
|
4,629
|
|
||
Fuel oil stock, at average cost
|
|
45,298
|
|
|
6,885
|
|
|
12,297
|
|
|
—
|
|
|
—
|
|
|
64,480
|
|
||
Materials and supplies, at average cost
|
|
32,676
|
|
|
8,424
|
|
|
16,256
|
|
|
—
|
|
|
—
|
|
|
57,356
|
|
||
Prepayments and other
|
|
28,073
|
|
|
4,484
|
|
|
3,548
|
|
|
—
|
|
|
(460
|
)
|
|
35,645
|
|
||
Regulatory assets
|
|
67,042
|
|
|
4,582
|
|
|
3,057
|
|
|
—
|
|
|
—
|
|
|
74,681
|
|
||
Total current assets
|
|
357,385
|
|
|
87,285
|
|
|
91,050
|
|
|
101
|
|
|
(46,468
|
)
|
|
489,353
|
|
||
Other long-term assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Regulatory assets
|
|
594,723
|
|
|
111,715
|
|
|
98,656
|
|
|
—
|
|
|
—
|
|
|
805,094
|
|
||
Unamortized debt expense
|
|
193
|
|
|
33
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
267
|
|
||
Other
|
|
42,872
|
|
|
12,786
|
|
|
13,336
|
|
|
—
|
|
|
—
|
|
|
68,994
|
|
||
Total other long-term assets
|
|
637,788
|
|
|
124,534
|
|
|
112,033
|
|
|
—
|
|
|
—
|
|
|
874,355
|
|
||
Total assets
|
|
$
|
4,598,577
|
|
|
967,743
|
|
|
851,231
|
|
|
101
|
|
|
(616,826
|
)
|
|
$
|
5,800,826
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock equity
|
|
$
|
1,766,727
|
|
|
299,276
|
|
|
270,981
|
|
|
101
|
|
|
(570,358
|
)
|
|
$
|
1,766,727
|
|
Cumulative preferred stock—not subject to mandatory redemption
|
|
22,293
|
|
|
7,000
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
875,573
|
|
|
213,673
|
|
|
190,081
|
|
|
—
|
|
|
—
|
|
|
1,279,327
|
|
||
Total capitalization
|
|
2,664,593
|
|
|
519,949
|
|
|
466,062
|
|
|
101
|
|
|
(570,358
|
)
|
|
3,080,347
|
|
||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Short-term borrowings from affiliate
|
|
55,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34,000
|
)
|
|
21,000
|
|
||
Accounts payable
|
|
79,341
|
|
|
14,844
|
|
|
13,312
|
|
|
—
|
|
|
—
|
|
|
107,497
|
|
||
Interest and preferred dividends payable
|
|
17,863
|
|
|
4,034
|
|
|
4,048
|
|
|
—
|
|
|
(11
|
)
|
|
25,934
|
|
||
Taxes accrued
|
|
115,245
|
|
|
27,669
|
|
|
24,822
|
|
|
—
|
|
|
(460
|
)
|
|
167,276
|
|
||
Regulatory liabilities
|
|
—
|
|
|
1,777
|
|
|
1,210
|
|
|
—
|
|
|
—
|
|
|
2,987
|
|
||
Other
|
|
46,326
|
|
|
9,856
|
|
|
12,568
|
|
|
—
|
|
|
(11,997
|
)
|
|
56,753
|
|
||
Total current liabilities
|
|
313,775
|
|
|
58,180
|
|
|
55,960
|
|
|
—
|
|
|
(46,468
|
)
|
|
381,447
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Deferred income taxes
|
|
510,457
|
|
|
105,574
|
|
|
98,213
|
|
|
—
|
|
|
315
|
|
|
714,559
|
|
||
Regulatory liabilities
|
|
274,070
|
|
|
91,897
|
|
|
31,525
|
|
|
—
|
|
|
—
|
|
|
397,492
|
|
||
Unamortized tax credits
|
|
57,058
|
|
|
15,774
|
|
|
14,962
|
|
|
—
|
|
|
—
|
|
|
87,794
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
396,468
|
|
|
67,415
|
|
|
72,029
|
|
|
—
|
|
|
—
|
|
|
535,912
|
|
||
Other
|
|
50,068
|
|
|
13,436
|
|
|
14,595
|
|
|
—
|
|
|
(315
|
)
|
|
77,784
|
|
||
Total deferred credits and other liabilities
|
|
1,288,121
|
|
|
294,096
|
|
|
231,324
|
|
|
—
|
|
|
—
|
|
|
1,813,541
|
|
||
Contributions in aid of construction
|
|
332,088
|
|
|
95,518
|
|
|
97,885
|
|
|
—
|
|
|
—
|
|
|
525,491
|
|
||
Total capitalization and liabilities
|
|
$
|
4,598,577
|
|
|
967,743
|
|
|
851,231
|
|
|
101
|
|
|
(616,826
|
)
|
|
$
|
5,800,826
|
|
(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
|
|
$
|
43,557
|
|
|
6,219
|
|
|
3,016
|
|
|
—
|
|
|
—
|
|
|
$
|
52,792
|
|
Plant and equipment
|
|
4,026,079
|
|
|
1,212,195
|
|
|
1,077,424
|
|
|
—
|
|
|
—
|
|
|
6,315,698
|
|
||
Less accumulated depreciation
|
|
(1,316,467
|
)
|
|
(486,028
|
)
|
|
(463,509
|
)
|
|
—
|
|
|
—
|
|
|
(2,266,004
|
)
|
||
Construction in progress
|
|
147,979
|
|
|
11,455
|
|
|
15,875
|
|
|
—
|
|
|
—
|
|
|
175,309
|
|
||
Utility property, plant and equipment, net
|
|
2,901,148
|
|
|
743,841
|
|
|
632,806
|
|
|
—
|
|
|
—
|
|
|
4,277,795
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation
|
|
5,659
|
|
|
82
|
|
|
1,531
|
|
|
—
|
|
|
—
|
|
|
7,272
|
|
||
Total property, plant and equipment, net
|
|
2,906,807
|
|
|
743,923
|
|
|
634,337
|
|
|
—
|
|
|
—
|
|
|
4,285,067
|
|
||
Investment in wholly owned subsidiaries,
at equity
|
|
556,528
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(556,528
|
)
|
|
—
|
|
||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
16,281
|
|
|
2,682
|
|
|
5,385
|
|
|
101
|
|
|
—
|
|
|
24,449
|
|
||
Advances to affiliates
|
|
—
|
|
|
15,500
|
|
|
7,500
|
|
|
—
|
|
|
(23,000
|
)
|
|
—
|
|
||
Customer accounts receivable, net
|
|
93,515
|
|
|
20,508
|
|
|
18,755
|
|
|
—
|
|
|
—
|
|
|
132,778
|
|
||
Accrued unbilled revenues, net
|
|
60,080
|
|
|
12,531
|
|
|
11,898
|
|
|
—
|
|
|
—
|
|
|
84,509
|
|
||
Other accounts receivable, net
|
|
16,421
|
|
|
1,275
|
|
|
1,674
|
|
|
—
|
|
|
(8,962
|
)
|
|
10,408
|
|
||
Fuel oil stock, at average cost
|
|
49,455
|
|
|
8,310
|
|
|
13,451
|
|
|
—
|
|
|
—
|
|
|
71,216
|
|
||
Materials and supplies, at average cost
|
|
30,921
|
|
|
6,865
|
|
|
16,643
|
|
|
—
|
|
|
—
|
|
|
54,429
|
|
||
Prepayments and other
|
|
25,505
|
|
|
9,091
|
|
|
2,295
|
|
|
—
|
|
|
(251
|
)
|
|
36,640
|
|
||
Regulatory assets
|
|
63,615
|
|
|
4,501
|
|
|
4,115
|
|
|
—
|
|
|
—
|
|
|
72,231
|
|
||
Total current assets
|
|
355,793
|
|
|
81,263
|
|
|
81,716
|
|
|
101
|
|
|
(32,213
|
)
|
|
486,660
|
|
||
Other long-term assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Regulatory assets
|
|
608,957
|
|
|
114,562
|
|
|
100,981
|
|
|
—
|
|
|
—
|
|
|
824,500
|
|
||
Unamortized debt expense
|
|
359
|
|
|
74
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|
497
|
|
||
Other
|
|
47,731
|
|
|
14,693
|
|
|
13,062
|
|
|
—
|
|
|
—
|
|
|
75,486
|
|
||
Total other long-term assets
|
|
657,047
|
|
|
129,329
|
|
|
114,107
|
|
|
—
|
|
|
—
|
|
|
900,483
|
|
||
Total assets
|
|
$
|
4,476,175
|
|
|
954,515
|
|
|
830,160
|
|
|
101
|
|
|
(588,741
|
)
|
|
$
|
5,672,210
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock equity
|
|
$
|
1,728,325
|
|
|
292,702
|
|
|
263,725
|
|
|
101
|
|
|
(556,528
|
)
|
|
$
|
1,728,325
|
|
Cumulative preferred stock—not subject to mandatory redemption
|
|
22,293
|
|
|
7,000
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
875,163
|
|
|
213,580
|
|
|
189,959
|
|
|
—
|
|
|
—
|
|
|
1,278,702
|
|
||
Total capitalization
|
|
2,625,781
|
|
|
513,282
|
|
|
458,684
|
|
|
101
|
|
|
(556,528
|
)
|
|
3,041,320
|
|
||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Short-term borrowings from affiliate
|
|
23,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23,000
|
)
|
|
—
|
|
||
Accounts payable
|
|
84,631
|
|
|
17,702
|
|
|
12,513
|
|
|
—
|
|
|
—
|
|
|
114,846
|
|
||
Interest and preferred dividends payable
|
|
15,747
|
|
|
4,255
|
|
|
3,113
|
|
|
—
|
|
|
(4
|
)
|
|
23,111
|
|
||
Taxes accrued
|
|
131,668
|
|
|
30,342
|
|
|
29,325
|
|
|
—
|
|
|
(251
|
)
|
|
191,084
|
|
||
Regulatory liabilities
|
|
—
|
|
|
1,030
|
|
|
1,174
|
|
|
—
|
|
|
—
|
|
|
2,204
|
|
||
Other
|
|
41,083
|
|
|
8,760
|
|
|
13,194
|
|
|
—
|
|
|
(8,958
|
)
|
|
54,079
|
|
||
Total current liabilities
|
|
296,129
|
|
|
62,089
|
|
|
59,319
|
|
|
—
|
|
|
(32,213
|
)
|
|
385,324
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Deferred income taxes
|
|
466,133
|
|
|
100,681
|
|
|
87,706
|
|
|
—
|
|
|
286
|
|
|
654,806
|
|
||
Regulatory liabilities
|
|
254,033
|
|
|
84,623
|
|
|
30,683
|
|
|
—
|
|
|
—
|
|
|
369,339
|
|
||
Unamortized tax credits
|
|
54,078
|
|
|
15,406
|
|
|
14,730
|
|
|
—
|
|
|
—
|
|
|
84,214
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
409,021
|
|
|
69,893
|
|
|
74,060
|
|
|
—
|
|
|
—
|
|
|
552,974
|
|
||
Other
|
|
51,273
|
|
|
13,243
|
|
|
13,916
|
|
|
—
|
|
|
(286
|
)
|
|
78,146
|
|
||
Total deferred credits and other liabilities
|
|
1,234,538
|
|
|
283,846
|
|
|
221,095
|
|
|
—
|
|
|
—
|
|
|
1,739,479
|
|
||
Contributions in aid of construction
|
|
319,727
|
|
|
95,298
|
|
|
91,062
|
|
|
—
|
|
|
—
|
|
|
506,087
|
|
||
Total capitalization and liabilities
|
|
$
|
4,476,175
|
|
|
954,515
|
|
|
830,160
|
|
|
101
|
|
|
(588,741
|
)
|
|
$
|
5,672,210
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Balance, December 31, 2015
|
|
$
|
1,728,325
|
|
|
292,702
|
|
|
263,725
|
|
|
101
|
|
|
(556,528
|
)
|
|
$
|
1,728,325
|
|
Net income for common stock
|
|
108,198
|
|
|
16,486
|
|
|
17,055
|
|
|
—
|
|
|
(33,541
|
)
|
|
108,198
|
|
||
Other comprehensive income (loss), net of taxes
|
|
412
|
|
|
(1
|
)
|
|
(4
|
)
|
|
—
|
|
|
5
|
|
|
412
|
|
||
Common stock dividends
|
|
(70,199
|
)
|
|
(9,906
|
)
|
|
(9,795
|
)
|
|
—
|
|
|
19,701
|
|
|
(70,199
|
)
|
||
Common stock issuance expenses
|
|
(9
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
5
|
|
|
(9
|
)
|
||
Balance, September 30, 2016
|
|
$
|
1,766,727
|
|
|
299,276
|
|
|
270,981
|
|
|
101
|
|
|
(570,358
|
)
|
|
$
|
1,766,727
|
|
(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
|
|
102,721
|
|
|
12,461
|
|
|
16,713
|
|
|
—
|
|
|
(29,174
|
)
|
|
102,721
|
|
||
Other comprehensive income (loss), net of taxes
|
|
11
|
|
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|
8
|
|
|
11
|
|
||
Common stock dividends
|
|
(67,804
|
)
|
|
(7,515
|
)
|
|
(11,382
|
)
|
|
—
|
|
|
18,897
|
|
|
(67,804
|
)
|
||
Common stock issuance expenses
|
|
(8
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
(8
|
)
|
||
Balance, September 30, 2015
|
|
$
|
1,717,064
|
|
|
286,788
|
|
|
262,018
|
|
|
101
|
|
|
(548,907
|
)
|
|
$
|
1,717,064
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income
|
|
$
|
109,008
|
|
|
16,886
|
|
|
17,341
|
|
|
—
|
|
|
(33,541
|
)
|
|
$
|
109,694
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Equity in earnings of subsidiaries
|
|
(33,616
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,541
|
|
|
(75
|
)
|
||
Common stock dividends received from subsidiaries
|
|
19,776
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,701
|
)
|
|
75
|
|
||
Depreciation of property, plant and equipment
|
|
94,564
|
|
|
28,347
|
|
|
17,389
|
|
|
—
|
|
|
—
|
|
|
140,300
|
|
||
Other amortization
|
|
2,462
|
|
|
1,366
|
|
|
1,552
|
|
|
—
|
|
|
—
|
|
|
5,380
|
|
||
Deferred income taxes
|
|
41,005
|
|
|
4,529
|
|
|
10,085
|
|
|
—
|
|
|
29
|
|
|
55,648
|
|
||
Tax credits, net
|
|
4,314
|
|
|
464
|
|
|
478
|
|
|
—
|
|
|
—
|
|
|
5,256
|
|
||
Allowance for equity funds used during construction
|
|
(4,771
|
)
|
|
(571
|
)
|
|
(668
|
)
|
|
—
|
|
|
—
|
|
|
(6,010
|
)
|
||
Other
|
|
(1,389
|
)
|
|
(302
|
)
|
|
(331
|
)
|
|
—
|
|
|
—
|
|
|
(2,022
|
)
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Decrease (increase) in accounts receivable
|
|
328
|
|
|
(2,716
|
)
|
|
(1,313
|
)
|
|
—
|
|
|
3,046
|
|
|
(655
|
)
|
||
Increase in accrued unbilled revenues
|
|
(9,673
|
)
|
|
(373
|
)
|
|
(612
|
)
|
|
—
|
|
|
—
|
|
|
(10,658
|
)
|
||
Decrease in fuel oil stock
|
|
4,157
|
|
|
1,425
|
|
|
1,154
|
|
|
—
|
|
|
—
|
|
|
6,736
|
|
||
Decrease (increase) in materials and supplies
|
|
(1,755
|
)
|
|
(1,559
|
)
|
|
387
|
|
|
—
|
|
|
—
|
|
|
(2,927
|
)
|
||
Decrease (increase) in regulatory assets
|
|
(2,474
|
)
|
|
(150
|
)
|
|
373
|
|
|
—
|
|
|
—
|
|
|
(2,251
|
)
|
||
Increase (decrease) in accounts payable
|
|
(2,628
|
)
|
|
143
|
|
|
1,809
|
|
|
—
|
|
|
—
|
|
|
(676
|
)
|
||
Change in prepaid and accrued income and utility revenue taxes
|
|
(7,324
|
)
|
|
2,230
|
|
|
(4,472
|
)
|
|
—
|
|
|
(29
|
)
|
|
(9,595
|
)
|
||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability
|
|
449
|
|
|
40
|
|
|
(129
|
)
|
|
—
|
|
|
—
|
|
|
360
|
|
||
Change in other assets and liabilities
|
|
(10,548
|
)
|
|
2,856
|
|
|
(2,571
|
)
|
|
—
|
|
|
(3,046
|
)
|
|
(13,309
|
)
|
||
Net cash provided by operating activities
|
|
201,885
|
|
|
52,615
|
|
|
40,472
|
|
|
—
|
|
|
(19,701
|
)
|
|
275,271
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(188,415
|
)
|
|
(37,835
|
)
|
|
(24,454
|
)
|
|
—
|
|
|
—
|
|
|
(250,704
|
)
|
||
Contributions in aid of construction
|
|
18,181
|
|
|
2,691
|
|
|
2,696
|
|
|
—
|
|
|
—
|
|
|
23,568
|
|
||
Other
|
|
901
|
|
|
169
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
1,100
|
|
||
Advances from affiliates
|
|
—
|
|
|
(3,000
|
)
|
|
(8,000
|
)
|
|
—
|
|
|
11,000
|
|
|
—
|
|
||
Net cash used in investing activities
|
|
(169,333
|
)
|
|
(37,975
|
)
|
|
(29,728
|
)
|
|
—
|
|
|
11,000
|
|
|
(226,036
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock dividends
|
|
(70,199
|
)
|
|
(9,906
|
)
|
|
(9,795
|
)
|
|
—
|
|
|
19,701
|
|
|
(70,199
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(810
|
)
|
|
(400
|
)
|
|
(286
|
)
|
|
—
|
|
|
—
|
|
|
(1,496
|
)
|
||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
32,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,000
|
)
|
|
21,000
|
|
||
Other
|
|
(3
|
)
|
|
(8
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
||
Net cash used in financing activities
|
|
(39,012
|
)
|
|
(10,314
|
)
|
|
(10,082
|
)
|
|
—
|
|
|
8,701
|
|
|
(50,707
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(6,460
|
)
|
|
4,326
|
|
|
662
|
|
|
—
|
|
|
—
|
|
|
(1,472
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
16,281
|
|
|
2,682
|
|
|
5,385
|
|
|
101
|
|
|
—
|
|
|
24,449
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
9,821
|
|
|
7,008
|
|
|
6,047
|
|
|
101
|
|
|
—
|
|
|
$
|
22,977
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries |
|
Consolidating
adjustments |
|
Hawaiian Electric
Consolidated |
||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income
|
|
$
|
103,531
|
|
|
12,861
|
|
|
16,999
|
|
|
—
|
|
|
(29,174
|
)
|
|
$
|
104,217
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Equity in earnings of subsidiaries
|
|
(29,249
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,174
|
|
|
(75
|
)
|
||
Common stock dividends received from subsidiaries
|
|
18,972
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,897
|
)
|
|
75
|
|
||
Depreciation of property, plant and equipment
|
|
88,167
|
|
|
27,938
|
|
|
16,735
|
|
|
—
|
|
|
—
|
|
|
132,840
|
|
||
Other amortization
|
|
2,029
|
|
|
1,331
|
|
|
1,639
|
|
|
—
|
|
|
—
|
|
|
4,999
|
|
||
Deferred income taxes
|
|
46,493
|
|
|
907
|
|
|
10,497
|
|
|
—
|
|
|
314
|
|
|
58,211
|
|
||
Tax credits, net
|
|
3,680
|
|
|
372
|
|
|
195
|
|
|
—
|
|
|
—
|
|
|
4,247
|
|
||
Allowance for equity funds used during construction
|
|
(4,418
|
)
|
|
(458
|
)
|
|
(490
|
)
|
|
—
|
|
|
—
|
|
|
(5,366
|
)
|
||
Impairment of utility assets
|
|
3,380
|
|
|
724
|
|
|
724
|
|
|
|
|
|
|
4,828
|
|
||||
Other
|
|
221
|
|
|
(286
|
)
|
|
(261
|
)
|
|
|
|
|
|
|
|
(326
|
)
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Decrease (increase) in accounts receivable
|
|
(4,226
|
)
|
|
(2,071
|
)
|
|
43
|
|
|
—
|
|
|
1,790
|
|
|
(4,464
|
)
|
||
Decrease in accrued unbilled revenues
|
|
6,283
|
|
|
3,696
|
|
|
3,817
|
|
|
—
|
|
|
—
|
|
|
13,796
|
|
||
Decrease in fuel oil stock
|
|
25,019
|
|
|
5,358
|
|
|
5,565
|
|
|
—
|
|
|
—
|
|
|
35,942
|
|
||
Decrease (increase) in materials and supplies
|
|
(759
|
)
|
|
(1,615
|
)
|
|
651
|
|
|
—
|
|
|
—
|
|
|
(1,723
|
)
|
||
Increase in regulatory assets
|
|
(19,138
|
)
|
|
(3,944
|
)
|
|
(376
|
)
|
|
—
|
|
|
—
|
|
|
(23,458
|
)
|
||
Decrease in accounts payable
|
|
(34,476
|
)
|
|
(4,070
|
)
|
|
(1,829
|
)
|
|
—
|
|
|
—
|
|
|
(40,375
|
)
|
||
Change in prepaid and accrued income and utility revenue taxes
|
|
(52,505
|
)
|
|
(2,276
|
)
|
|
(6,540
|
)
|
|
—
|
|
|
(314
|
)
|
|
(61,635
|
)
|
||
Increase in defined benefit pension and other postretirement benefit plans liability
|
|
—
|
|
|
—
|
|
|
331
|
|
|
—
|
|
|
—
|
|
|
331
|
|
||
Change in other assets and liabilities
|
|
(16,847
|
)
|
|
722
|
|
|
(2,563
|
)
|
|
—
|
|
|
(1,790
|
)
|
|
(20,478
|
)
|
||
Net cash provided by operating activities
|
|
136,157
|
|
|
39,189
|
|
|
45,137
|
|
|
—
|
|
|
(18,897
|
)
|
|
201,586
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(204,406
|
)
|
|
(34,048
|
)
|
|
(27,067
|
)
|
|
—
|
|
|
—
|
|
|
(265,521
|
)
|
||
Contributions in aid of construction
|
|
30,153
|
|
|
2,940
|
|
|
1,534
|
|
|
—
|
|
|
—
|
|
|
34,627
|
|
||
Other
|
|
583
|
|
|
124
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
778
|
|
||
Advances from affiliates
|
|
4,100
|
|
|
—
|
|
|
(2,500
|
)
|
|
—
|
|
|
(1,600
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
|
(169,570
|
)
|
|
(30,984
|
)
|
|
(27,962
|
)
|
|
—
|
|
|
(1,600
|
)
|
|
(230,116
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common stock dividends
|
|
(67,804
|
)
|
|
(7,515
|
)
|
|
(11,382
|
)
|
|
—
|
|
|
18,897
|
|
|
(67,804
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(810
|
)
|
|
(400
|
)
|
|
(286
|
)
|
|
—
|
|
|
—
|
|
|
(1,496
|
)
|
||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
97,495
|
|
|
1,500
|
|
|
(5,600
|
)
|
|
—
|
|
|
1,600
|
|
|
94,995
|
|
||
Other
|
|
(219
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(223
|
)
|
||
Net cash provided by (used in) financing activities
|
|
28,662
|
|
|
(6,418
|
)
|
|
(17,269
|
)
|
|
—
|
|
|
20,497
|
|
|
25,472
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(4,751
|
)
|
|
1,787
|
|
|
(94
|
)
|
|
—
|
|
|
—
|
|
|
(3,058
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
12,416
|
|
|
612
|
|
|
633
|
|
|
101
|
|
|
—
|
|
|
13,762
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
7,665
|
|
|
2,399
|
|
|
539
|
|
|
101
|
|
|
—
|
|
|
$
|
10,704
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Interest and dividend income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and fees on loans
|
|
$
|
50,444
|
|
|
$
|
46,413
|
|
|
$
|
148,571
|
|
|
$
|
137,646
|
|
Interest and dividends on investment securities
|
|
4,759
|
|
|
4,213
|
|
|
14,219
|
|
|
10,570
|
|
||||
Total interest and dividend income
|
|
55,203
|
|
|
50,626
|
|
|
162,790
|
|
|
148,216
|
|
||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest on deposit liabilities
|
|
1,871
|
|
|
1,355
|
|
|
5,154
|
|
|
3,881
|
|
||||
Interest on other borrowings
|
|
1,464
|
|
|
1,515
|
|
|
4,416
|
|
|
4,468
|
|
||||
Total interest expense
|
|
3,335
|
|
|
2,870
|
|
|
9,570
|
|
|
8,349
|
|
||||
Net interest income
|
|
51,868
|
|
|
47,756
|
|
|
153,220
|
|
|
139,867
|
|
||||
Provision for loan losses
|
|
5,747
|
|
|
2,997
|
|
|
15,266
|
|
|
5,436
|
|
||||
Net interest income after provision for loan losses
|
|
46,121
|
|
|
44,759
|
|
|
137,954
|
|
|
134,431
|
|
||||
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fees from other financial services
|
|
5,599
|
|
|
5,639
|
|
|
16,799
|
|
|
16,544
|
|
||||
Fee income on deposit liabilities
|
|
5,627
|
|
|
5,883
|
|
|
16,045
|
|
|
16,622
|
|
||||
Fee income on other financial products
|
|
2,151
|
|
|
2,096
|
|
|
6,563
|
|
|
6,088
|
|
||||
Bank-owned life insurance
|
|
1,616
|
|
|
1,021
|
|
|
3,620
|
|
|
3,062
|
|
||||
Mortgage banking income
|
|
2,347
|
|
|
1,437
|
|
|
5,096
|
|
|
5,327
|
|
||||
Gains on sale of investment securities, net
|
|
—
|
|
|
—
|
|
|
598
|
|
|
—
|
|
||||
Other income, net
|
|
1,165
|
|
|
2,389
|
|
|
1,786
|
|
|
3,363
|
|
||||
Total noninterest income
|
|
18,505
|
|
|
18,465
|
|
|
50,507
|
|
|
51,006
|
|
||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and employee benefits
|
|
22,844
|
|
|
22,728
|
|
|
67,197
|
|
|
66,813
|
|
||||
Occupancy
|
|
3,991
|
|
|
4,128
|
|
|
12,244
|
|
|
12,250
|
|
||||
Data processing
|
|
3,150
|
|
|
3,032
|
|
|
9,599
|
|
|
9,101
|
|
||||
Services
|
|
2,427
|
|
|
2,556
|
|
|
8,093
|
|
|
7,730
|
|
||||
Equipment
|
|
1,759
|
|
|
1,608
|
|
|
5,193
|
|
|
4,999
|
|
||||
Office supplies, printing and postage
|
|
1,483
|
|
|
1,511
|
|
|
4,431
|
|
|
4,297
|
|
||||
Marketing
|
|
747
|
|
|
934
|
|
|
2,507
|
|
|
2,619
|
|
||||
FDIC insurance
|
|
907
|
|
|
809
|
|
|
2,704
|
|
|
2,393
|
|
||||
Other expense
|
|
4,591
|
|
|
5,116
|
|
|
13,948
|
|
|
14,076
|
|
||||
Total noninterest expense
|
|
41,899
|
|
|
42,422
|
|
|
125,916
|
|
|
124,278
|
|
||||
Income before income taxes
|
|
22,727
|
|
|
20,802
|
|
|
62,545
|
|
|
61,159
|
|
||||
Income taxes
|
|
7,623
|
|
|
7,351
|
|
|
21,483
|
|
|
21,382
|
|
||||
Net income
|
|
$
|
15,104
|
|
|
$
|
13,451
|
|
|
$
|
41,062
|
|
|
$
|
39,777
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income
|
|
$
|
15,104
|
|
|
$
|
13,451
|
|
|
$
|
41,062
|
|
|
$
|
39,777
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized gains (losses) on available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, net of (taxes) benefits of $1,417, $(2,543), $(5,413) and $(2,382) for the respective periods
|
|
(2,147
|
)
|
|
3,851
|
|
|
8,197
|
|
|
3,608
|
|
||||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of nil, nil, $238 and nil for the respective periods
|
|
—
|
|
|
—
|
|
|
(360
|
)
|
|
—
|
|
||||
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 $144, $249, $421 and $763 for the respective periods
|
|
219
|
|
|
376
|
|
|
638
|
|
|
1,155
|
|
||||
Other comprehensive income (loss), net of taxes
|
|
(1,928
|
)
|
|
4,227
|
|
|
8,475
|
|
|
4,763
|
|
||||
Comprehensive income
|
|
$
|
13,176
|
|
|
$
|
17,678
|
|
|
$
|
49,537
|
|
|
$
|
44,540
|
|
(in thousands)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and due from banks
|
|
|
|
|
$
|
109,591
|
|
|
|
|
|
$
|
127,201
|
|
||
Interest-bearing deposits
|
|
|
|
103,989
|
|
|
|
|
93,680
|
|
||||||
Available-for-sale investment securities, at fair value
|
|
|
|
|
996,984
|
|
|
|
|
|
820,648
|
|
||||
Stock in Federal Home Loan Bank, at cost
|
|
|
|
|
11,218
|
|
|
|
|
|
10,678
|
|
||||
Loans receivable held for investment
|
|
|
|
|
4,734,638
|
|
|
|
|
|
4,615,819
|
|
||||
Allowance for loan losses
|
|
|
|
|
(58,737
|
)
|
|
|
|
|
(50,038
|
)
|
||||
Net loans
|
|
|
|
|
4,675,901
|
|
|
|
|
|
4,565,781
|
|
||||
Loans held for sale, at lower of cost or fair value
|
|
|
|
|
26,743
|
|
|
|
|
|
4,631
|
|
||||
Other
|
|
|
|
|
330,054
|
|
|
|
|
|
309,946
|
|
||||
Goodwill
|
|
|
|
|
82,190
|
|
|
|
|
|
82,190
|
|
||||
Total assets
|
|
|
|
|
$
|
6,336,670
|
|
|
|
|
|
$
|
6,014,755
|
|
||
|
|
|
|
|
|
|
|
|
||||||||
Liabilities and shareholder’s equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposit liabilities—noninterest-bearing
|
|
|
|
|
$
|
1,570,613
|
|
|
|
|
|
$
|
1,520,374
|
|
||
Deposit liabilities—interest-bearing
|
|
|
|
|
3,810,108
|
|
|
|
|
|
3,504,880
|
|
||||
Other borrowings
|
|
|
|
|
265,388
|
|
|
|
|
|
328,582
|
|
||||
Other
|
|
|
|
|
106,396
|
|
|
|
|
|
101,029
|
|
||||
Total liabilities
|
|
|
|
|
5,752,505
|
|
|
|
|
|
5,454,865
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock
|
|
|
|
|
1
|
|
|
|
|
|
1
|
|
||||
Additional paid in capital
|
|
|
|
342,234
|
|
|
|
|
340,496
|
|
||||||
Retained earnings
|
|
|
|
|
250,726
|
|
|
|
|
|
236,664
|
|
||||
Accumulated other comprehensive loss, net of tax benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized gains (losses) on securities
|
|
$
|
5,965
|
|
|
|
|
|
$
|
(1,872
|
)
|
|
|
|
||
Retirement benefit plans
|
|
(14,761
|
)
|
|
(8,796
|
)
|
|
(15,399
|
)
|
|
(17,271
|
)
|
||||
Total shareholder’s equity
|
|
|
|
|
584,165
|
|
|
|
|
|
559,890
|
|
||||
Total liabilities and shareholder’s equity
|
|
|
|
|
$
|
6,336,670
|
|
|
|
|
|
$
|
6,014,755
|
|
||
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bank-owned life insurance
|
|
|
|
|
$
|
141,262
|
|
|
|
|
|
$
|
138,139
|
|
||
Premises and equipment, net
|
|
|
|
|
91,354
|
|
|
|
|
|
88,077
|
|
||||
Prepaid expenses
|
|
|
|
|
4,072
|
|
|
|
|
|
3,550
|
|
||||
Accrued interest receivable
|
|
|
|
|
15,489
|
|
|
|
|
|
15,192
|
|
||||
Mortgage-servicing rights
|
|
|
|
|
9,191
|
|
|
|
|
|
8,884
|
|
||||
Low-income housing equity investments
|
|
|
|
48,474
|
|
|
|
|
37,793
|
|
||||||
Real estate acquired in settlement of loans, net
|
|
|
|
|
219
|
|
|
|
|
|
1,030
|
|
||||
Other
|
|
|
|
|
19,993
|
|
|
|
|
|
17,281
|
|
||||
|
|
|
|
|
$
|
330,054
|
|
|
|
|
|
$
|
309,946
|
|
||
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued expenses
|
|
|
|
|
$
|
37,671
|
|
|
|
|
|
$
|
30,705
|
|
||
Federal and state income taxes payable
|
|
|
|
|
13,971
|
|
|
|
|
|
13,448
|
|
||||
Cashier’s checks
|
|
|
|
|
24,923
|
|
|
|
|
|
21,768
|
|
||||
Advance payments by borrowers
|
|
|
|
|
5,531
|
|
|
|
|
|
10,311
|
|
||||
Other
|
|
|
|
|
24,300
|
|
|
|
|
|
24,797
|
|
||||
|
|
|
|
|
$
|
106,396
|
|
|
|
|
|
$
|
101,029
|
|
|
|
Amortized cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Estimated fair
value
|
|
|
|
Gross unrealized losses
|
||||||||||||||||||||||||||
|
|
|
|
|
|
Less than 12 months
|
|
12 months or longer
|
||||||||||||||||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
Number of issues
|
|
Fair
value
|
|
Amount
|
|
Number of issues
|
|
Fair
value
|
|
Amount
|
||||||||||||||||||||||
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury and federal agency obligations
|
|
$
|
186,287
|
|
|
$
|
3,125
|
|
|
$
|
(40
|
)
|
|
$
|
189,372
|
|
|
1
|
|
|
$
|
9,988
|
|
|
$
|
(12
|
)
|
|
1
|
|
|
$
|
3,834
|
|
|
$
|
(28
|
)
|
Mortgage-related securities- FNMA, FHLMC and GNMA
|
|
800,794
|
|
|
7,782
|
|
|
(964
|
)
|
|
807,612
|
|
|
18
|
|
|
134,687
|
|
|
(323
|
)
|
|
13
|
|
|
51,458
|
|
|
(641
|
)
|
||||||||
|
|
$
|
987,081
|
|
|
$
|
10,907
|
|
|
$
|
(1,004
|
)
|
|
$
|
996,984
|
|
|
19
|
|
|
$
|
144,675
|
|
|
$
|
(335
|
)
|
|
14
|
|
|
$
|
55,292
|
|
|
$
|
(669
|
)
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury and federal agency obligations
|
|
$
|
213,234
|
|
|
$
|
1,025
|
|
|
$
|
(1,300
|
)
|
|
$
|
212,959
|
|
|
13
|
|
|
$
|
83,053
|
|
|
$
|
(866
|
)
|
|
3
|
|
|
$
|
17,378
|
|
|
$
|
(434
|
)
|
Mortgage-related securities- FNMA, FHLMC and GNMA
|
|
610,522
|
|
|
3,564
|
|
|
(6,397
|
)
|
|
607,689
|
|
|
38
|
|
|
305,785
|
|
|
(2,866
|
)
|
|
25
|
|
|
125,817
|
|
|
(3,531
|
)
|
||||||||
|
|
$
|
823,756
|
|
|
$
|
4,589
|
|
|
$
|
(7,697
|
)
|
|
$
|
820,648
|
|
|
51
|
|
|
$
|
388,838
|
|
|
$
|
(3,732
|
)
|
|
28
|
|
|
$
|
143,195
|
|
|
$
|
(3,965
|
)
|
September 30, 2016
|
|
Amortized cost
|
|
Fair value
|
||||
(in thousands)
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
—
|
|
|
$
|
—
|
|
Due after one year through five years
|
|
87,165
|
|
|
88,754
|
|
||
Due after five years through ten years
|
|
78,222
|
|
|
79,534
|
|
||
Due after ten years
|
|
20,900
|
|
|
21,084
|
|
||
|
|
186,287
|
|
|
189,372
|
|
||
Mortgage-related securities-FNMA,FHLMC and GNMA
|
|
800,794
|
|
|
807,612
|
|
||
Total available-for-sale securities
|
|
$
|
987,081
|
|
|
$
|
996,984
|
|
(in thousands)
|
|
Residential
1-4 family
|
|
Commercial real
estate
|
|
Home
equity line of credit |
|
Residential land
|
|
Commercial construction
|
|
Residential construction
|
|
Commercial loans
|
|
Consumer loans
|
|
Unallo-cated
|
|
Total
|
||||||||||||||||||||
Three months ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
$
|
4,384
|
|
|
$
|
13,561
|
|
|
$
|
7,836
|
|
|
$
|
1,689
|
|
|
$
|
6,993
|
|
|
$
|
12
|
|
|
$
|
17,085
|
|
|
$
|
3,771
|
|
|
$
|
—
|
|
|
$
|
55,331
|
|
Charge-offs
|
|
(373
|
)
|
|
—
|
|
|
(108
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(833
|
)
|
|
(1,879
|
)
|
|
—
|
|
|
(3,193
|
)
|
||||||||||
Recoveries
|
|
92
|
|
|
—
|
|
|
15
|
|
|
187
|
|
|
—
|
|
|
—
|
|
|
347
|
|
|
211
|
|
|
—
|
|
|
852
|
|
||||||||||
Provision
|
|
154
|
|
|
1,289
|
|
|
(248
|
)
|
|
23
|
|
|
179
|
|
|
(2
|
)
|
|
2,457
|
|
|
1,895
|
|
|
—
|
|
|
5,747
|
|
||||||||||
Ending balance
|
|
$
|
4,257
|
|
|
$
|
14,850
|
|
|
$
|
7,495
|
|
|
$
|
1,899
|
|
|
$
|
7,172
|
|
|
$
|
10
|
|
|
$
|
19,056
|
|
|
$
|
3,998
|
|
|
$
|
—
|
|
|
$
|
58,737
|
|
Three months ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
$
|
4,291
|
|
|
$
|
10,420
|
|
|
$
|
6,613
|
|
|
$
|
2,103
|
|
|
$
|
2,575
|
|
|
$
|
18
|
|
|
$
|
17,469
|
|
|
$
|
2,876
|
|
|
$
|
—
|
|
|
$
|
46,365
|
|
Charge-offs
|
|
(138
|
)
|
|
—
|
|
|
(185
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(126
|
)
|
|
(1,271
|
)
|
|
—
|
|
|
(1,720
|
)
|
||||||||||
Recoveries
|
|
45
|
|
|
—
|
|
|
33
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
279
|
|
|
241
|
|
|
—
|
|
|
632
|
|
||||||||||
Provision
|
|
285
|
|
|
987
|
|
|
446
|
|
|
(73
|
)
|
|
944
|
|
|
(5
|
)
|
|
(920
|
)
|
|
1,333
|
|
|
—
|
|
|
2,997
|
|
||||||||||
Ending balance
|
|
$
|
4,483
|
|
|
$
|
11,407
|
|
|
$
|
6,907
|
|
|
$
|
2,064
|
|
|
$
|
3,519
|
|
|
$
|
13
|
|
|
$
|
16,702
|
|
|
$
|
3,179
|
|
|
$
|
—
|
|
|
$
|
48,274
|
|
Nine months ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
$
|
4,186
|
|
|
$
|
11,342
|
|
|
$
|
7,260
|
|
|
$
|
1,671
|
|
|
$
|
4,461
|
|
|
$
|
13
|
|
|
$
|
17,208
|
|
|
$
|
3,897
|
|
|
$
|
—
|
|
|
$
|
50,038
|
|
Charge-offs
|
|
(433
|
)
|
|
—
|
|
|
(108
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,138
|
)
|
|
(4,977
|
)
|
|
—
|
|
|
(8,656
|
)
|
||||||||||
Recoveries
|
|
144
|
|
|
—
|
|
|
46
|
|
|
306
|
|
|
—
|
|
|
—
|
|
|
907
|
|
|
686
|
|
|
—
|
|
|
2,089
|
|
||||||||||
Provision
|
|
360
|
|
|
3,508
|
|
|
297
|
|
|
(78
|
)
|
|
2,711
|
|
|
(3
|
)
|
|
4,079
|
|
|
4,392
|
|
|
—
|
|
|
15,266
|
|
||||||||||
Ending balance
|
|
$
|
4,257
|
|
|
$
|
14,850
|
|
|
$
|
7,495
|
|
|
$
|
1,899
|
|
|
$
|
7,172
|
|
|
$
|
10
|
|
|
$
|
19,056
|
|
|
$
|
3,998
|
|
|
$
|
—
|
|
|
$
|
58,737
|
|
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
|
$
|
1,625
|
|
|
$
|
161
|
|
|
$
|
1,040
|
|
|
$
|
951
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,734
|
|
|
$
|
2
|
|
|
|
|
$
|
8,513
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
2,632
|
|
|
$
|
14,689
|
|
|
$
|
6,455
|
|
|
$
|
948
|
|
|
$
|
7,172
|
|
|
$
|
10
|
|
|
$
|
14,322
|
|
|
$
|
3,996
|
|
|
$
|
—
|
|
|
$
|
50,224
|
|
Financing Receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance
|
|
$
|
2,054,460
|
|
|
$
|
774,349
|
|
|
$
|
859,952
|
|
|
$
|
19,666
|
|
|
$
|
140,758
|
|
|
$
|
15,073
|
|
|
$
|
717,450
|
|
|
$
|
158,065
|
|
|
|
|
$
|
4,739,773
|
|
||
Ending balance: individually evaluated for impairment
|
|
$
|
21,566
|
|
|
$
|
3,762
|
|
|
$
|
5,886
|
|
|
$
|
4,428
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,685
|
|
|
$
|
11
|
|
|
|
|
$
|
64,338
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
2,032,894
|
|
|
$
|
770,587
|
|
|
$
|
854,066
|
|
|
$
|
15,238
|
|
|
$
|
140,758
|
|
|
$
|
15,073
|
|
|
$
|
688,765
|
|
|
$
|
158,054
|
|
|
|
|
$
|
4,675,435
|
|
||
Nine months ended September 30, 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
|
|
(352
|
)
|
|
—
|
|
|
(205
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(928
|
)
|
|
(3,196
|
)
|
|
—
|
|
|
(4,681
|
)
|
||||||||||
Recoveries
|
|
112
|
|
|
—
|
|
|
72
|
|
|
219
|
|
|
—
|
|
|
—
|
|
|
726
|
|
|
772
|
|
|
—
|
|
|
1,901
|
|
||||||||||
Provision
|
|
61
|
|
|
2,453
|
|
|
58
|
|
|
(30
|
)
|
|
(1,952
|
)
|
|
(15
|
)
|
|
2,887
|
|
|
1,974
|
|
|
—
|
|
|
5,436
|
|
||||||||||
Ending balance
|
|
$
|
4,483
|
|
|
$
|
11,407
|
|
|
$
|
6,907
|
|
|
$
|
2,064
|
|
|
$
|
3,519
|
|
|
$
|
13
|
|
|
$
|
16,702
|
|
|
$
|
3,179
|
|
|
$
|
—
|
|
|
$
|
48,274
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
|
$
|
1,453
|
|
|
$
|
—
|
|
|
$
|
442
|
|
|
$
|
891
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,527
|
|
|
$
|
7
|
|
|
|
|
$
|
6,320
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
2,733
|
|
|
$
|
11,342
|
|
|
$
|
6,818
|
|
|
$
|
780
|
|
|
$
|
4,461
|
|
|
$
|
13
|
|
|
$
|
13,681
|
|
|
$
|
3,890
|
|
|
$
|
—
|
|
|
$
|
43,718
|
|
Financing Receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance
|
|
$
|
2,069,665
|
|
|
$
|
690,561
|
|
|
$
|
846,294
|
|
|
$
|
18,229
|
|
|
$
|
100,796
|
|
|
$
|
14,089
|
|
|
$
|
758,659
|
|
|
$
|
123,775
|
|
|
|
|
$
|
4,622,068
|
|
||
Ending balance: individually evaluated for impairment
|
|
$
|
22,457
|
|
|
$
|
1,188
|
|
|
$
|
3,225
|
|
|
$
|
5,683
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21,119
|
|
|
$
|
13
|
|
|
|
|
$
|
53,685
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
2,047,208
|
|
|
$
|
689,373
|
|
|
$
|
843,069
|
|
|
$
|
12,546
|
|
|
$
|
100,796
|
|
|
$
|
14,089
|
|
|
$
|
737,540
|
|
|
$
|
123,762
|
|
|
|
|
$
|
4,568,383
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
(in thousands)
|
|
Commercial
real estate
|
|
Commercial
construction
|
|
Commercial
|
|
Commercial
real estate
|
|
Commercial
construction
|
|
Commercial
|
||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pass
|
|
$
|
681,712
|
|
|
$
|
114,325
|
|
|
$
|
643,547
|
|
|
$
|
642,410
|
|
|
$
|
86,991
|
|
|
$
|
703,208
|
|
Special mention
|
|
58,411
|
|
|
—
|
|
|
17,654
|
|
|
7,710
|
|
|
13,805
|
|
|
7,029
|
|
||||||
Substandard
|
|
34,226
|
|
|
26,433
|
|
|
54,156
|
|
|
40,441
|
|
|
—
|
|
|
47,975
|
|
||||||
Doubtful
|
|
—
|
|
|
—
|
|
|
2,093
|
|
|
—
|
|
|
—
|
|
|
447
|
|
||||||
Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
774,349
|
|
|
$
|
140,758
|
|
|
$
|
717,450
|
|
|
$
|
690,561
|
|
|
$
|
100,796
|
|
|
$
|
758,659
|
|
(in thousands)
|
|
30-59
days
past due
|
|
60-89
days
past due
|
|
Greater
than
90 days
|
|
Total
past due
|
|
Current
|
|
Total
financing
receivables
|
|
Recorded
investment>
90 days and
accruing
|
||||||||||||||
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
4,293
|
|
|
$
|
1,626
|
|
|
$
|
10,576
|
|
|
$
|
16,495
|
|
|
$
|
2,037,965
|
|
|
$
|
2,054,460
|
|
|
$
|
—
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
774,349
|
|
|
774,349
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
827
|
|
|
787
|
|
|
674
|
|
|
2,288
|
|
|
857,664
|
|
|
859,952
|
|
|
—
|
|
|||||||
Residential land
|
|
—
|
|
|
—
|
|
|
541
|
|
|
541
|
|
|
19,125
|
|
|
19,666
|
|
|
393
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
140,758
|
|
|
140,758
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,073
|
|
|
15,073
|
|
|
—
|
|
|||||||
Commercial
|
|
681
|
|
|
997
|
|
|
19
|
|
|
1,697
|
|
|
715,753
|
|
|
717,450
|
|
|
—
|
|
|||||||
Consumer
|
|
1,708
|
|
|
636
|
|
|
813
|
|
|
3,157
|
|
|
154,908
|
|
|
158,065
|
|
|
—
|
|
|||||||
Total loans
|
|
$
|
7,509
|
|
|
$
|
4,046
|
|
|
$
|
12,623
|
|
|
$
|
24,178
|
|
|
$
|
4,715,595
|
|
|
$
|
4,739,773
|
|
|
$
|
393
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
4,967
|
|
|
$
|
3,289
|
|
|
$
|
11,503
|
|
|
$
|
19,759
|
|
|
$
|
2,049,906
|
|
|
$
|
2,069,665
|
|
|
$
|
—
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
690,561
|
|
|
690,561
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
896
|
|
|
706
|
|
|
477
|
|
|
2,079
|
|
|
844,215
|
|
|
846,294
|
|
|
—
|
|
|||||||
Residential land
|
|
—
|
|
|
—
|
|
|
415
|
|
|
415
|
|
|
17,814
|
|
|
18,229
|
|
|
—
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100,796
|
|
|
100,796
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,089
|
|
|
14,089
|
|
|
—
|
|
|||||||
Commercial
|
|
125
|
|
|
223
|
|
|
878
|
|
|
1,226
|
|
|
757,433
|
|
|
758,659
|
|
|
—
|
|
|||||||
Consumer
|
|
1,383
|
|
|
593
|
|
|
644
|
|
|
2,620
|
|
|
121,155
|
|
|
123,775
|
|
|
—
|
|
|||||||
Total loans
|
|
$
|
7,371
|
|
|
$
|
4,811
|
|
|
$
|
13,917
|
|
|
$
|
26,099
|
|
|
$
|
4,595,969
|
|
|
$
|
4,622,068
|
|
|
$
|
—
|
|
(in thousands)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
Real estate:
|
|
|
|
|
|
|
||
Residential 1-4 family
|
|
$
|
20,929
|
|
|
$
|
20,554
|
|
Commercial real estate
|
|
3,762
|
|
|
1,188
|
|
||
Home equity line of credit
|
|
2,404
|
|
|
2,254
|
|
||
Residential land
|
|
776
|
|
|
970
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
23,588
|
|
|
20,174
|
|
||
Consumer
|
|
1,157
|
|
|
895
|
|
||
Total nonaccrual loans
|
|
$
|
52,616
|
|
|
$
|
46,035
|
|
Real estate:
|
|
|
|
|
||||
Residential 1-4 family
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
||
Home equity line of credit
|
|
—
|
|
|
—
|
|
||
Residential land
|
|
393
|
|
|
—
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
—
|
|
|
—
|
|
||
Consumer
|
|
—
|
|
|
—
|
|
||
Total accruing loans 90 days or more past due
|
|
$
|
393
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
||||
Residential 1-4 family
|
|
$
|
13,308
|
|
|
$
|
13,962
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
||
Home equity line of credit
|
|
4,501
|
|
|
2,467
|
|
||
Residential land
|
|
3,258
|
|
|
4,713
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
4,673
|
|
|
1,104
|
|
||
Consumer
|
|
—
|
|
|
—
|
|
||
Total troubled debt restructured loans not included above
|
|
$
|
25,740
|
|
|
$
|
22,246
|
|
|
|
September 30, 2016
|
|
Three months ended September 30, 2016
|
|
Nine months ended September 30, 2016
|
||||||||||||||||||||||
(in thousands)
|
|
Recorded
investment
|
|
Unpaid
principal
balance
|
|
Related
Allowance
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
||||||||||||||
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
10,137
|
|
|
$
|
11,473
|
|
|
$
|
—
|
|
|
$
|
10,069
|
|
|
$
|
65
|
|
|
$
|
10,378
|
|
|
$
|
268
|
|
Commercial real estate
|
|
1,351
|
|
|
1,645
|
|
|
—
|
|
|
1,206
|
|
|
—
|
|
|
1,177
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
1,300
|
|
|
1,695
|
|
|
—
|
|
|
1,220
|
|
|
6
|
|
|
1,035
|
|
|
15
|
|
|||||||
Residential land
|
|
1,608
|
|
|
2,304
|
|
|
—
|
|
|
1,521
|
|
|
16
|
|
|
1,532
|
|
|
47
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
6,624
|
|
|
7,637
|
|
|
—
|
|
|
14,352
|
|
|
141
|
|
|
9,240
|
|
|
154
|
|
|||||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|||||||
|
|
$
|
21,020
|
|
|
$
|
24,754
|
|
|
$
|
—
|
|
|
$
|
28,378
|
|
|
$
|
228
|
|
|
$
|
23,365
|
|
|
$
|
484
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
11,429
|
|
|
$
|
11,632
|
|
|
$
|
1,625
|
|
|
$
|
11,800
|
|
|
$
|
119
|
|
|
$
|
11,933
|
|
|
$
|
356
|
|
Commercial real estate
|
|
2,411
|
|
|
2,482
|
|
|
161
|
|
|
2,444
|
|
|
—
|
|
|
1,939
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
4,587
|
|
|
4,657
|
|
|
1,040
|
|
|
4,165
|
|
|
36
|
|
|
3,470
|
|
|
91
|
|
|||||||
Residential land
|
|
2,819
|
|
|
2,819
|
|
|
951
|
|
|
2,915
|
|
|
44
|
|
|
3,090
|
|
|
165
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
22,061
|
|
|
22,434
|
|
|
4,734
|
|
|
11,433
|
|
|
65
|
|
|
15,075
|
|
|
275
|
|
|||||||
Consumer
|
|
11
|
|
|
11
|
|
|
2
|
|
|
11
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|||||||
|
|
$
|
43,318
|
|
|
$
|
44,035
|
|
|
$
|
8,513
|
|
|
$
|
32,768
|
|
|
$
|
264
|
|
|
$
|
35,519
|
|
|
$
|
887
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
21,566
|
|
|
$
|
23,105
|
|
|
$
|
1,625
|
|
|
$
|
21,869
|
|
|
$
|
184
|
|
|
$
|
22,311
|
|
|
$
|
624
|
|
Commercial real estate
|
|
3,762
|
|
|
4,127
|
|
|
161
|
|
|
3,650
|
|
|
—
|
|
|
3,116
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
5,887
|
|
|
6,352
|
|
|
1,040
|
|
|
5,385
|
|
|
42
|
|
|
4,505
|
|
|
106
|
|
|||||||
Residential land
|
|
4,427
|
|
|
5,123
|
|
|
951
|
|
|
4,436
|
|
|
60
|
|
|
4,622
|
|
|
212
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
28,685
|
|
|
30,071
|
|
|
4,734
|
|
|
25,785
|
|
|
206
|
|
|
24,315
|
|
|
429
|
|
|||||||
Consumer
|
|
11
|
|
|
11
|
|
|
2
|
|
|
21
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|||||||
|
|
$
|
64,338
|
|
|
$
|
68,789
|
|
|
$
|
8,513
|
|
|
$
|
61,146
|
|
|
$
|
492
|
|
|
$
|
58,884
|
|
|
$
|
1,371
|
|
|
|
December 31, 2015
|
|
Three months ended September 30, 2015
|
|
Nine months ended September 30, 2015
|
||||||||||||||||||||||
(in thousands)
|
|
Recorded
investment
|
|
Unpaid
principal
balance
|
|
Related
allowance
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
||||||||||||||
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
10,596
|
|
|
$
|
11,805
|
|
|
$
|
—
|
|
|
$
|
11,159
|
|
|
$
|
119
|
|
|
$
|
11,301
|
|
|
$
|
274
|
|
Commercial real estate
|
|
1,188
|
|
|
1,436
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
362
|
|
|
74
|
|
|||||||
Home equity line of credit
|
|
707
|
|
|
948
|
|
|
—
|
|
|
498
|
|
|
1
|
|
|
444
|
|
|
3
|
|
|||||||
Residential land
|
|
1,644
|
|
|
2,412
|
|
|
—
|
|
|
2,280
|
|
|
29
|
|
|
2,647
|
|
|
125
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
5,671
|
|
|
6,333
|
|
|
—
|
|
|
4,250
|
|
|
3
|
|
|
5,659
|
|
|
144
|
|
|||||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
$
|
19,806
|
|
|
$
|
22,934
|
|
|
$
|
—
|
|
|
$
|
18,187
|
|
|
$
|
226
|
|
|
$
|
20,413
|
|
|
$
|
620
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
11,861
|
|
|
$
|
11,914
|
|
|
$
|
1,453
|
|
|
$
|
11,451
|
|
|
$
|
174
|
|
|
$
|
11,585
|
|
|
$
|
430
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,985
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
2,518
|
|
|
2,579
|
|
|
442
|
|
|
2,048
|
|
|
13
|
|
|
1,295
|
|
|
27
|
|
|||||||
Residential land
|
|
4,039
|
|
|
4,117
|
|
|
891
|
|
|
3,971
|
|
|
74
|
|
|
4,435
|
|
|
241
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
15,448
|
|
|
16,073
|
|
|
3,527
|
|
|
18,487
|
|
|
106
|
|
|
10,942
|
|
|
192
|
|
|||||||
Consumer
|
|
13
|
|
|
13
|
|
|
7
|
|
|
14
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|||||||
|
|
$
|
33,879
|
|
|
$
|
34,696
|
|
|
$
|
6,320
|
|
|
$
|
35,971
|
|
|
$
|
367
|
|
|
$
|
30,257
|
|
|
$
|
890
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
22,457
|
|
|
$
|
23,719
|
|
|
$
|
1,453
|
|
|
$
|
22,610
|
|
|
$
|
293
|
|
|
$
|
22,886
|
|
|
$
|
704
|
|
Commercial real estate
|
|
1,188
|
|
|
1,436
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
2,347
|
|
|
74
|
|
|||||||
Home equity line of credit
|
|
3,225
|
|
|
3,527
|
|
|
442
|
|
|
2,546
|
|
|
14
|
|
|
1,739
|
|
|
30
|
|
|||||||
Residential land
|
|
5,683
|
|
|
6,529
|
|
|
891
|
|
|
6,251
|
|
|
103
|
|
|
7,082
|
|
|
366
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
21,119
|
|
|
22,406
|
|
|
3,527
|
|
|
22,737
|
|
|
109
|
|
|
16,601
|
|
|
336
|
|
|||||||
Consumer
|
|
13
|
|
|
13
|
|
|
7
|
|
|
14
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|||||||
|
|
$
|
53,685
|
|
|
$
|
57,630
|
|
|
$
|
6,320
|
|
|
$
|
54,158
|
|
|
$
|
593
|
|
|
$
|
50,670
|
|
|
$
|
1,510
|
|
*
|
Since loan was classified as impaired.
|
|
|
Three months ended September 30, 2016
|
|
Nine months ended September 30, 2016
|
||||||||||||||||||||||||||
|
|
Number of contracts
|
|
Outstanding recorded
investment
1
|
|
Net increase in allowance
|
|
Number of contracts
|
|
Outstanding recorded
investment
1
|
|
Net increase in allowance
|
||||||||||||||||||
(dollars in thousands)
|
|
|
Pre-modification
|
|
Post-modification
|
|
(as of period end)
|
|
|
Pre-modification
|
|
Post-modification
|
|
(as of period end)
|
||||||||||||||||
Troubled debt restructurings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Residential 1-4 family
|
|
2
|
|
|
$
|
251
|
|
|
$
|
251
|
|
|
$
|
46
|
|
|
11
|
|
|
$
|
2,239
|
|
|
$
|
2,351
|
|
|
$
|
305
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Home equity line of credit
|
|
12
|
|
|
1,268
|
|
|
1,268
|
|
|
237
|
|
|
30
|
|
|
2,705
|
|
|
2,705
|
|
|
492
|
|
||||||
Residential land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
120
|
|
|
121
|
|
|
—
|
|
||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial
|
|
6
|
|
|
3,462
|
|
|
3,462
|
|
|
53
|
|
|
14
|
|
|
20,119
|
|
|
20,119
|
|
|
723
|
|
||||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
20
|
|
|
$
|
4,981
|
|
|
$
|
4,981
|
|
|
$
|
336
|
|
|
56
|
|
|
$
|
25,183
|
|
|
$
|
25,296
|
|
|
$
|
1,520
|
|
|
|
Three months ended September 30, 2015
|
|
Nine months ended September 30, 2015
|
||||||||||||||||||||||||||
|
|
Number of contracts
|
|
Outstanding recorded
investment 1 |
|
Net increase in allowance
|
|
Number of contracts
|
|
Outstanding recorded
investment 1 |
|
Net increase in allowance
|
||||||||||||||||||
(dollars in thousands)
|
|
|
Pre-modification
|
|
Post-modification
|
|
(as of period end)
|
|
|
Pre-modification
|
|
Post-modification
|
|
(as of period end)
|
||||||||||||||||
Troubled debt restructurings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential 1-4 family
|
|
3
|
|
|
$
|
860
|
|
|
$
|
866
|
|
|
$
|
1
|
|
|
10
|
|
|
$
|
2,055
|
|
|
$
|
2,079
|
|
|
$
|
48
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Home equity line of credit
|
|
10
|
|
|
943
|
|
|
943
|
|
|
140
|
|
|
32
|
|
|
2,062
|
|
|
2,062
|
|
|
300
|
|
||||||
Residential land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial
|
|
2
|
|
|
1,208
|
|
|
1,208
|
|
|
16
|
|
|
6
|
|
|
1,461
|
|
|
1,461
|
|
|
94
|
|
||||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
15
|
|
|
$
|
3,011
|
|
|
$
|
3,017
|
|
|
$
|
157
|
|
|
48
|
|
|
$
|
5,578
|
|
|
$
|
5,602
|
|
|
$
|
442
|
|
1
|
The reported balances include loans that became TDR during the period, and were fully paid-off, charged-off, or sold prior to period end.
|
|
|
Three months ended September 30, 2016
|
|
Nine months ended September 30, 2016
|
||||||||
(dollars in thousands)
|
|
Number of contracts
|
|
Recorded investment
|
|
Number of contracts
|
|
Recorded investment
|
||||
Troubled debt restructurings that
subsequently defaulted
|
|
|
|
|
|
|
|
|
||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
||
Residential 1-4 family
|
|
1
|
|
$
|
239
|
|
|
1
|
|
$
|
239
|
|
Commercial real estate
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Home equity line of credit
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Residential land
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Commercial construction
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Residential construction
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Commercial
|
|
—
|
|
—
|
|
|
1
|
|
25
|
|
||
Consumer
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
|
|
1
|
|
$
|
239
|
|
|
2
|
|
$
|
264
|
|
|
|
Three months ended September 30, 2015
|
|
Nine months ended September 30, 2015
|
||||||||
(dollars in thousands)
|
|
Number of contracts
|
|
Recorded investment
|
|
Number of contracts
|
|
Recorded investment
|
||||
Troubled debt restructurings that
subsequently defaulted
|
|
|
|
|
|
|
|
|
||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
||
Residential 1-4 family
|
|
—
|
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
Commercial real estate
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Home equity line of credit
|
|
1
|
|
7
|
|
|
1
|
|
7
|
|
||
Residential land
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Commercial construction
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Residential construction
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Commercial
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Consumer
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
|
|
1
|
|
$
|
7
|
|
|
1
|
|
$
|
7
|
|
(in thousands)
|
|
Gross
carrying amount 1 |
|
Accumulated amortization
1
|
|
Valuation allowance
|
|
Net
carrying amount |
||||||||
September 30, 2016
|
|
$
|
16,475
|
|
|
$
|
(7,284
|
)
|
|
$
|
—
|
|
|
$
|
9,191
|
|
December 31, 2015
|
|
14,531
|
|
|
(5,647
|
)
|
|
—
|
|
|
8,884
|
|
(in thousands)
|
2016
|
|
|
2015
|
|
||
Mortgage servicing rights
|
|
|
|
||||
Balance, January 1
|
$
|
8,884
|
|
|
$
|
11,749
|
|
Amount capitalized
|
1,944
|
|
|
2,636
|
|
||
Amortization
|
(1,637
|
)
|
|
(2,123
|
)
|
||
Other-than-temporary impairment
|
—
|
|
|
(4
|
)
|
||
Carrying amount before valuation allowance, September 30
|
9,191
|
|
|
12,258
|
|
||
Valuation allowance for mortgage servicing rights
|
|
|
|
||||
Balance, January 1
|
—
|
|
|
209
|
|
||
Provision (recovery)
|
—
|
|
|
(205
|
)
|
||
Other-than-temporary impairment
|
—
|
|
|
(4
|
)
|
||
Balance, September 30
|
—
|
|
|
—
|
|
||
Net carrying value of mortgage servicing rights
|
$
|
9,191
|
|
|
$
|
12,258
|
|
(dollars in thousands)
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
||
Unpaid principal balance
|
|
$
|
1,160,266
|
|
|
$
|
1,097,314
|
|
Weighted average note rate
|
|
4.00
|
%
|
|
4.05
|
%
|
||
Weighted average discount rate
|
|
9.4
|
%
|
|
9.6
|
%
|
||
Weighted average prepayment speed
|
|
12.4
|
%
|
|
9.3
|
%
|
(dollars in thousands)
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
||
Prepayment rate:
|
|
|
|
|
||||
25 basis points adverse rate change
|
|
$
|
(533
|
)
|
|
$
|
(561
|
)
|
50 basis points adverse rate change
|
|
(952
|
)
|
|
(1,104
|
)
|
||
Discount rate:
|
|
|
|
|
||||
25 basis points adverse rate change
|
|
(90
|
)
|
|
(111
|
)
|
||
50 basis points adverse rate change
|
|
(179
|
)
|
|
(220
|
)
|
(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
|
|
|
|
|
|
|
September 30, 2016
|
|
$165
|
|
$—
|
|
$165
|
December 31, 2015
|
|
229
|
|
—
|
|
229
|
|
|
Gross amount not offset in the Balance Sheet
|
||||||||||
(in millions)
|
|
Liabilities presented
in the Balance Sheet
|
|
Financial
instruments
|
|
Cash
collateral
pledged
|
||||||
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|||
Financial institution
|
|
$
|
50
|
|
|
$
|
53
|
|
|
$
|
—
|
|
Government entities
|
|
14
|
|
|
16
|
|
|
—
|
|
|||
Commercial account holders
|
|
101
|
|
|
135
|
|
|
—
|
|
|||
Total
|
|
$
|
165
|
|
|
$
|
204
|
|
|
$
|
—
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|||
Financial institution
|
|
$
|
50
|
|
|
$
|
56
|
|
|
$
|
—
|
|
Government entities
|
|
56
|
|
|
61
|
|
|
—
|
|
|||
Commercial account holders
|
|
123
|
|
|
144
|
|
|
—
|
|
|||
Total
|
|
$
|
229
|
|
|
$
|
261
|
|
|
$
|
—
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
(in thousands)
|
|
Notional amount
|
|
Fair value
|
|
Notional amount
|
|
Fair value
|
||||||||
Interest rate lock commitments
|
|
$
|
40,700
|
|
|
$
|
843
|
|
|
$
|
22,241
|
|
|
$
|
384
|
|
Forward commitments
|
|
43,500
|
|
|
(163
|
)
|
|
23,644
|
|
|
(29
|
)
|
Derivative Financial Instruments Not Designated as Hedging Instruments
1
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
(in thousands)
|
|
Asset derivatives
|
|
Liability
derivatives
|
|
Asset derivatives
|
|
Liability
derivatives |
||||||||
Interest rate lock commitments
|
|
$
|
843
|
|
|
$
|
—
|
|
|
$
|
384
|
|
|
$
|
—
|
|
Forward commitments
|
|
1
|
|
|
164
|
|
|
1
|
|
|
30
|
|
||||
|
|
$
|
844
|
|
|
$
|
164
|
|
|
$
|
385
|
|
|
$
|
30
|
|
Derivative Financial Instruments Not Designated as Hedging Instruments
|
Location of net gains (losses) recognized in
the Statement of Income
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
Interest rate lock commitments
|
Mortgage banking income
|
|
$
|
48
|
|
|
$
|
139
|
|
|
$
|
459
|
|
|
$
|
195
|
|
Forward commitments
|
Mortgage banking income
|
|
103
|
|
|
(117
|
)
|
|
(134
|
)
|
|
(18
|
)
|
||||
|
|
|
$
|
151
|
|
|
$
|
22
|
|
|
$
|
325
|
|
|
$
|
177
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||||||||||||||||||
|
|
Pension benefits
|
|
Other benefits
|
|
Pension benefits
|
|
Other benefits
|
||||||||||||||||||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Service cost
|
|
$
|
15,126
|
|
|
$
|
16,577
|
|
|
$
|
831
|
|
|
$
|
982
|
|
|
$
|
45,430
|
|
|
$
|
49,683
|
|
|
$
|
2,499
|
|
|
$
|
2,945
|
|
Interest cost
|
|
20,396
|
|
|
19,229
|
|
|
2,417
|
|
|
2,254
|
|
|
61,154
|
|
|
57,731
|
|
|
7,254
|
|
|
6,757
|
|
||||||||
Expected return on plan assets
|
|
(24,640
|
)
|
|
(22,126
|
)
|
|
(3,064
|
)
|
|
(2,912
|
)
|
|
(73,920
|
)
|
|
(66,426
|
)
|
|
(9,207
|
)
|
|
(8,753
|
)
|
||||||||
Amortization of net prior service loss (gain)
|
|
(15
|
)
|
|
1
|
|
|
(449
|
)
|
|
(448
|
)
|
|
(43
|
)
|
|
3
|
|
|
(1,345
|
)
|
|
(1,345
|
)
|
||||||||
Amortization of net actuarial loss
|
|
6,228
|
|
|
9,191
|
|
|
200
|
|
|
450
|
|
|
18,605
|
|
|
27,608
|
|
|
603
|
|
|
1,346
|
|
||||||||
Net periodic benefit cost
|
|
17,095
|
|
|
22,872
|
|
|
(65
|
)
|
|
326
|
|
|
51,226
|
|
|
68,599
|
|
|
(196
|
)
|
|
950
|
|
||||||||
Impact of PUC D&Os
|
|
(4,653
|
)
|
|
(10,017
|
)
|
|
336
|
|
|
(60
|
)
|
|
(13,464
|
)
|
|
(29,994
|
)
|
|
1,008
|
|
|
(180
|
)
|
||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os)
|
|
$
|
12,442
|
|
|
$
|
12,855
|
|
|
$
|
271
|
|
|
$
|
266
|
|
|
$
|
37,762
|
|
|
$
|
38,605
|
|
|
$
|
812
|
|
|
$
|
770
|
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Service cost
|
|
$
|
14,699
|
|
|
$
|
16,066
|
|
|
$
|
821
|
|
|
$
|
967
|
|
|
$
|
44,097
|
|
|
$
|
48,197
|
|
|
$
|
2,463
|
|
|
$
|
2,902
|
|
Interest cost
|
|
18,702
|
|
|
17,632
|
|
|
2,334
|
|
|
2,175
|
|
|
56,106
|
|
|
52,897
|
|
|
7,003
|
|
|
6,525
|
|
||||||||
Expected return on plan assets
|
|
(22,908
|
)
|
|
(20,635
|
)
|
|
(3,023
|
)
|
|
(2,873
|
)
|
|
(68,725
|
)
|
|
(61,906
|
)
|
|
(9,072
|
)
|
|
(8,621
|
)
|
||||||||
Amortization of net prior service loss (gain)
|
|
3
|
|
|
10
|
|
|
(451
|
)
|
|
(450
|
)
|
|
10
|
|
|
30
|
|
|
(1,353
|
)
|
|
(1,352
|
)
|
||||||||
Amortization of net actuarial loss
|
|
5,674
|
|
|
8,342
|
|
|
198
|
|
|
438
|
|
|
17,020
|
|
|
25,028
|
|
|
595
|
|
|
1,315
|
|
||||||||
Net periodic benefit cost
|
|
16,170
|
|
|
21,415
|
|
|
(121
|
)
|
|
257
|
|
|
48,508
|
|
|
64,246
|
|
|
(364
|
)
|
|
769
|
|
||||||||
Impact of PUC D&Os
|
|
(4,653
|
)
|
|
(10,017
|
)
|
|
336
|
|
|
(60
|
)
|
|
(13,464
|
)
|
|
(29,994
|
)
|
|
1,008
|
|
|
(180
|
)
|
||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os)
|
|
$
|
11,517
|
|
|
$
|
11,398
|
|
|
$
|
215
|
|
|
$
|
197
|
|
|
$
|
35,044
|
|
|
$
|
34,252
|
|
|
$
|
644
|
|
|
$
|
589
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
||||||||
Share-based compensation expense
1
|
|
$
|
1.6
|
|
|
$
|
1.0
|
|
|
$
|
3.6
|
|
|
$
|
4.8
|
|
Income tax benefit
|
|
0.5
|
|
|
0.3
|
|
|
1.2
|
|
|
1.7
|
|
||||
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
||||||||
Share-based compensation expense
1
|
|
0.5
|
|
|
0.1
|
|
|
1.0
|
|
|
1.3
|
|
||||
Income tax benefit
|
|
0.2
|
|
|
—
|
|
|
0.4
|
|
|
0.5
|
|
1
|
For the three and nine months ended September 30, 2016, the Company has not capitalized any share-based compensation.
$0.03 million
and
$0.12 million
of this share-based compensation expense was capitalized in the three and
nine
months ended
September 30, 2015
.
|
|
|
Nine months ended September 30
|
||||||
($ in millions)
|
|
2016
|
|
2015
|
||||
Shares granted
|
|
19,846
|
|
|
28,246
|
|
||
Fair value
|
|
$
|
0.6
|
|
|
$
|
0.8
|
|
Income tax benefit
|
|
0.2
|
|
|
0.3
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||
(dollars in thousands, except prices)
|
2015
|
|
2015
|
||||
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
|
—
|
|
|
82
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||||||||||
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||||||||||
Outstanding, beginning of period
|
225,752
|
|
|
$
|
29.59
|
|
|
252,302
|
|
|
$
|
28.35
|
|
|
210,634
|
|
|
$
|
28.82
|
|
|
261,235
|
|
|
$
|
25.77
|
|
||||
Granted
|
766
|
|
|
30.65
|
|
|
690
|
|
|
30.91
|
|
|
95,048
|
|
|
29.91
|
|
|
85,772
|
|
|
33.69
|
|
||||||||
Vested
|
(4,419
|
)
|
|
27.26
|
|
|
(19,840
|
)
|
|
25.35
|
|
|
(83,583
|
)
|
|
27.88
|
|
|
(99,891
|
)
|
|
25.69
|
|
||||||||
Forfeited
|
(2,352
|
)
|
|
29.69
|
|
|
(14,316
|
)
|
|
25.82
|
|
|
(2,352
|
)
|
|
29.69
|
|
|
(28,280
|
)
|
|
26.66
|
|
||||||||
Outstanding, end of period
|
219,747
|
|
|
$
|
29.64
|
|
|
218,836
|
|
|
$
|
28.79
|
|
|
219,747
|
|
|
$
|
29.64
|
|
|
218,836
|
|
|
$
|
28.79
|
|
||||
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 September 30
|
|
Nine months ended September 30
|
||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||||||
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||||||
Outstanding, beginning of period
|
83,947
|
|
|
$
|
22.95
|
|
|
163,423
|
|
|
$
|
27.63
|
|
|
162,500
|
|
|
$
|
27.66
|
|
|
257,956
|
|
|
$
|
28.45
|
|
Granted (target level)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Vested (issued or unissued and cancelled)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(78,553
|
)
|
|
32.69
|
|
|
(75,915
|
)
|
|
30.71
|
|
||||
Forfeited
|
(175
|
)
|
|
22.95
|
|
|
—
|
|
|
—
|
|
|
(175
|
)
|
|
22.95
|
|
|
(18,618
|
)
|
|
26.41
|
|
||||
Outstanding, end of period
|
83,772
|
|
|
$
|
22.95
|
|
|
163,423
|
|
|
$
|
27.63
|
|
|
83,772
|
|
|
$
|
22.95
|
|
|
163,423
|
|
|
$
|
27.63
|
|
(1)
|
Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||||||
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||||||
Outstanding, beginning of period
|
113,550
|
|
|
$
|
25.18
|
|
|
220,158
|
|
|
$
|
26.00
|
|
|
222,647
|
|
|
$
|
26.02
|
|
|
364,731
|
|
|
$
|
26.01
|
|
Granted (target level)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Vested (issued)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(109,097
|
)
|
|
26.89
|
|
|
(121,249
|
)
|
|
26.05
|
|
||||
Cancelled
|
—
|
|
|
—
|
|
|
(14,050
|
)
|
|
26.89
|
|
|
—
|
|
|
—
|
|
|
(14,050
|
)
|
|
26.89
|
|
||||
Forfeited
|
(699
|
)
|
|
25.19
|
|
|
—
|
|
|
—
|
|
|
(699
|
)
|
|
25.19
|
|
|
(23,324
|
)
|
|
25.85
|
|
||||
Outstanding, end of period
|
112,851
|
|
|
$
|
25.18
|
|
|
206,108
|
|
|
$
|
25.94
|
|
|
112,851
|
|
|
$
|
25.18
|
|
|
206,108
|
|
|
$
|
25.94
|
|
(1)
|
Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.
|
|
HEI Consolidated
|
|
Hawaiian Electric Consolidated
|
||||||||||||||||||||||||
(in thousands)
|
Net unrealized gains (losses) on securities
|
|
Unrealized gains (losses) on derivatives
|
|
Retirement benefit plans
|
|
AOCI
|
|
Unrealized gains on derivatives
|
|
Retirement benefit plans
|
|
AOCI
|
||||||||||||||
Balance, December 31, 2015
|
$
|
(1,872
|
)
|
|
$
|
(54
|
)
|
|
$
|
(24,336
|
)
|
|
$
|
(26,262
|
)
|
|
$
|
—
|
|
|
$
|
925
|
|
|
$
|
925
|
|
Current period other comprehensive income
|
7,837
|
|
|
459
|
|
|
943
|
|
|
9,239
|
|
|
405
|
|
|
7
|
|
|
412
|
|
|||||||
Balance, September 30, 2016
|
$
|
5,965
|
|
|
$
|
405
|
|
|
$
|
(23,393
|
)
|
|
$
|
(17,023
|
)
|
|
$
|
405
|
|
|
$
|
932
|
|
|
$
|
1,337
|
|
Balance, December 31, 2014
|
$
|
462
|
|
|
$
|
(289
|
)
|
|
$
|
(27,551
|
)
|
|
$
|
(27,378
|
)
|
|
$
|
—
|
|
|
$
|
45
|
|
|
$
|
45
|
|
Current period other comprehensive income
|
3,608
|
|
|
177
|
|
|
1,576
|
|
|
5,361
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|||||||
Balance, September 30, 2015
|
$
|
4,070
|
|
|
$
|
(112
|
)
|
|
$
|
(25,975
|
)
|
|
$
|
(22,017
|
)
|
|
$
|
—
|
|
|
$
|
56
|
|
|
$
|
56
|
|
|
|
Amount reclassified from AOCI
|
|
|
||||||||||||||
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
|
Affected line item in the
|
||||||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Statement of Income
|
||||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net realized gains on securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(360
|
)
|
|
$
|
—
|
|
|
Revenues-bank (net gains on sales of securities)
|
Derivatives qualified as cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Window forward contracts
|
|
(173
|
)
|
|
—
|
|
|
(173
|
)
|
|
—
|
|
|
Revenues-electric utility (gains on window forward)
|
||||
Interest rate contracts (settled in 2011)
|
|
—
|
|
|
59
|
|
|
54
|
|
|
177
|
|
|
Interest expense
|
||||
Retirement benefit plan items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost
|
|
3,641
|
|
|
5,611
|
|
|
10,877
|
|
|
16,850
|
|
|
See Note 6 for additional details
|
||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets
|
|
(3,311
|
)
|
|
(5,091
|
)
|
|
(9,934
|
)
|
|
(15,274
|
)
|
|
See Note 6 for additional details
|
||||
Total reclassifications
|
|
$
|
157
|
|
|
$
|
579
|
|
|
$
|
464
|
|
|
$
|
1,753
|
|
|
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives qualified as cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
||||||||
Window forward contracts
|
|
$
|
(173
|
)
|
|
$
|
—
|
|
|
$
|
(173
|
)
|
|
$
|
—
|
|
|
Revenues (gains on window forward)
|
Retirement benefit plan items
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost
|
|
3,314
|
|
|
5,095
|
|
|
9,941
|
|
|
15,285
|
|
|
See Note 6 for additional details
|
||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets
|
|
(3,311
|
)
|
|
(5,091
|
)
|
|
(9,934
|
)
|
|
(15,274
|
)
|
|
See Note 6 for additional details
|
||||
Total reclassifications
|
|
$
|
(170
|
)
|
|
$
|
4
|
|
|
$
|
(166
|
)
|
|
$
|
11
|
|
|
|
|
|
|
|
Estimated fair value
|
||||||||||||||||
|
|
Carrying or notional amount
|
|
Quoted
prices in
active markets
for identical assets
|
|
Significant
other observable
inputs
|
|
Significant
unobservable
inputs
|
|
|
||||||||||
(in thousands)
|
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Total
|
|||||||||||
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Money market funds
|
|
$
|
45,030
|
|
|
$
|
—
|
|
|
$
|
45,030
|
|
|
$
|
—
|
|
|
$
|
45,030
|
|
Available-for-sale investment securities
|
|
996,984
|
|
|
—
|
|
|
996,984
|
|
|
—
|
|
|
996,984
|
|
|||||
Stock in Federal Home Loan Bank
|
|
11,218
|
|
|
—
|
|
|
11,218
|
|
|
—
|
|
|
11,218
|
|
|||||
Loans receivable, net
|
|
4,702,644
|
|
|
—
|
|
|
26,784
|
|
|
4,923,457
|
|
|
4,950,241
|
|
|||||
Mortgage servicing rights
|
|
9,191
|
|
|
—
|
|
|
—
|
|
|
10,971
|
|
|
10,971
|
|
|||||
Bank-owned life insurance
|
|
141,262
|
|
|
—
|
|
|
141,262
|
|
|
—
|
|
|
141,262
|
|
|||||
Derivative assets
|
|
62,581
|
|
|
—
|
|
|
1,508
|
|
|
—
|
|
|
1,508
|
|
|||||
The Utilities’ derivative assets (included in amount above)
|
|
20,725
|
|
|
—
|
|
|
664
|
|
|
—
|
|
|
664
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposit liabilities
|
|
5,380,721
|
|
|
—
|
|
|
5,384,924
|
|
|
—
|
|
|
5,384,924
|
|
|||||
Other bank borrowings
|
|
265,388
|
|
|
—
|
|
|
267,892
|
|
|
—
|
|
|
267,892
|
|
|||||
Long-term debt, net—other than bank
|
|
1,579,065
|
|
|
—
|
|
|
1,741,707
|
|
|
—
|
|
|
1,741,707
|
|
|||||
The Utilities’ long-term debt, net (included in amount above)
|
|
1,279,327
|
|
|
—
|
|
|
1,432,766
|
|
|
—
|
|
|
1,432,766
|
|
|||||
Derivative liabilities
|
|
42,344
|
|
|
121
|
|
|
43
|
|
|
—
|
|
|
164
|
|
|||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Money market funds
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
10
|
|
Available-for-sale investment securities
|
|
820,648
|
|
|
—
|
|
|
820,648
|
|
|
—
|
|
|
820,648
|
|
|||||
Stock in Federal Home Loan Bank
|
|
10,678
|
|
|
—
|
|
|
10,678
|
|
|
—
|
|
|
10,678
|
|
|||||
Loans receivable, net
|
|
4,570,412
|
|
|
—
|
|
|
4,639
|
|
|
4,744,886
|
|
|
4,749,525
|
|
|||||
Mortgage servicing rights
|
|
8,884
|
|
|
—
|
|
|
—
|
|
|
11,790
|
|
|
11,790
|
|
|||||
Bank-owned life insurance
|
|
138,139
|
|
|
—
|
|
|
138,139
|
|
|
—
|
|
|
138,139
|
|
|||||
Derivative assets
|
|
22,616
|
|
|
—
|
|
|
385
|
|
|
—
|
|
|
385
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposit liabilities
|
|
5,025,254
|
|
|
—
|
|
|
5,024,500
|
|
|
—
|
|
|
5,024,500
|
|
|||||
Short-term borrowings—other than bank
|
|
103,063
|
|
|
—
|
|
|
103,063
|
|
|
—
|
|
|
103,063
|
|
|||||
Other bank borrowings
|
|
328,582
|
|
|
—
|
|
|
333,392
|
|
|
—
|
|
|
333,392
|
|
|||||
Long-term debt, net—other than bank*
|
|
1,578,368
|
|
|
—
|
|
|
1,669,087
|
|
|
—
|
|
|
1,669,087
|
|
|||||
The Utilities’ long-term debt, net (included in amount above)*
|
|
1,278,702
|
|
|
—
|
|
|
1,363,766
|
|
|
—
|
|
|
1,363,766
|
|
|||||
Derivative liabilities
|
|
23,269
|
|
|
15
|
|
|
15
|
|
|
—
|
|
|
30
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
|
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)
|
|
$
|
—
|
|
|
$
|
45,030
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
—
|
|
Available-for-sale investment securities (bank segment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Mortgage-related securities-FNMA, FHLMC and GNMA
|
|
$
|
—
|
|
|
$
|
807,612
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
607,689
|
|
|
$
|
—
|
|
U.S. Treasury and federal agency obligations
|
|
—
|
|
|
189,372
|
|
|
—
|
|
|
—
|
|
|
212,959
|
|
|
—
|
|
||||||
|
|
$
|
—
|
|
|
$
|
996,984
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
820,648
|
|
|
$
|
—
|
|
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate lock commitments
1
|
|
$
|
—
|
|
|
$
|
843
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
384
|
|
|
$
|
—
|
|
Forward commitments
1
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Window forward contract
2
|
|
—
|
|
|
664
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
$
|
—
|
|
|
$
|
1,508
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
385
|
|
|
$
|
—
|
|
Derivative liabilities
1
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Forward commitments
|
|
$
|
121
|
|
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
|
|
|
Fair value measurements
|
||||||||||||
(in thousands)
|
|
Balance
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
September 30, 2016
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
$
|
1,382
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,382
|
|
Real estate acquired in settlement of loans
|
|
219
|
|
|
—
|
|
|
—
|
|
|
219
|
|
||||
December 31, 2015
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
178
|
|
|
—
|
|
|
—
|
|
|
178
|
|
||||
Real estate acquired in settlement of loans
|
|
1,030
|
|
|
—
|
|
|
—
|
|
|
1,030
|
|
|
|
|
|
|
|
|
|
Significant unobservable
input value
(1)
|
||||
($ in thousands)
|
|
Fair value
|
|
Valuation technique
|
|
Significant unobservable input
|
|
Range
|
|
Weighted
Average
|
||
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||
Residential loans
|
|
$
|
1,370
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling costs
|
|
42-91%
|
|
64%
|
Home equity lines of credit
|
|
12
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling costs
|
|
|
|
N/A (2)
|
|
Total loans
|
|
$
|
1,382
|
|
|
|
|
|
|
|
|
|
Real estate acquired in settlement of loans
|
|
$
|
219
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling costs
|
|
100%
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
||
Residential loans
|
|
$
|
50
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling costs
|
|
|
|
N/A (2)
|
Home equity lines of credit
|
|
128
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling costs
|
|
|
|
N/A (2)
|
|
Total loans
|
|
$
|
178
|
|
|
|
|
|
|
|
|
|
Real estate acquired in settlement of loans
|
|
$
|
1,030
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling cost
|
|
100%
|
|
100%
|
(2)
|
N/A - Not applicable. There is one loan in each fair value measurement type.
|
Nine months ended September 30
|
|
2016
|
|
2015
|
||||
(in millions)
|
|
|
|
|
||||
Supplemental disclosures of cash flow information
|
|
|
|
|
|
|
||
HEI consolidated
|
|
|
|
|
||||
Interest paid to non-affiliates
|
|
$
|
61
|
|
|
$
|
61
|
|
Income taxes paid
|
|
19
|
|
|
62
|
|
||
Income taxes refunded
|
|
45
|
|
|
55
|
|
||
Hawaiian Electric consolidated
|
|
|
|
|
||||
Interest paid to non-affiliates
|
|
43
|
|
|
43
|
|
||
Income taxes paid
|
|
—
|
|
|
13
|
|
||
Income taxes refunded
|
|
20
|
|
|
12
|
|
||
Supplemental disclosures of noncash activities
|
|
|
|
|
|
|
||
HEI consolidated
|
|
|
|
|
||||
Common stock dividends reinvested in HEI common stock (financing)
1
|
|
17
|
|
|
—
|
|
||
Loans transferred from held for investment to held for sale (investing)
|
|
14
|
|
|
—
|
|
||
Real estate transferred from property, plant and equipment to other assets held-for-sale (investing)
|
|
1
|
|
|
5
|
|
||
Obligations to fund low income housing investments (operating)
|
|
14
|
|
|
1
|
|
||
HEI consolidated and Hawaiian Electric consolidated
|
|
|
|
|
||||
Additions to electric utility property, plant and equipment - unpaid invoices and accruals (investing)
|
|
(7
|
)
|
|
1
|
|
(in thousands)
|
As
previously
filed
|
Adjustment from adoption of ASU No. 2015-03
|
As
currently reported
|
|||||||
December 31, 2015
|
|
|
|
|||||||
HEI Consolidated Balance Sheet and Note 3 - Segment financial information (Total assets)
|
|
|
|
|||||||
Other assets
|
$
|
488,635
|
|
$
|
(8,178
|
)
|
$
|
480,457
|
|
|
Total assets and Total liabilities and shareholders’ equity
|
11,790,196
|
|
(8,178
|
)
|
11,782,018
|
|
||||
Long-term debt, net-other than bank
|
1,586,546
|
|
(8,178
|
)
|
1,578,368
|
|
||||
Total liabilities
|
9,828,263
|
|
(8,178
|
)
|
9,820,085
|
|
||||
Hawaiian Electric Consolidated Balance Sheet and Note 3 - Segment financial information (Total assets)
|
|
|
|
|||||||
Unamortized debt expense
|
8,341
|
|
(7,844
|
)
|
497
|
|
||||
Total other long-term assets
|
908,327
|
|
(7,844
|
)
|
900,483
|
|
||||
Total assets and Total capitalization and liabilities
|
5,680,054
|
|
(7,844
|
)
|
5,672,210
|
|
||||
Long-term debt, net
|
1,286,546
|
|
(7,844
|
)
|
1,278,702
|
|
||||
Total capitalization
|
3,049,164
|
|
(7,844
|
)
|
3,041,320
|
|
||||
Note 4 - Hawaiian Electric Consolidating Balance Sheet
|
|
|
|
|||||||
Hawaiian Electric (parent only)
|
|
|
|
|||||||
Unamortized debt expense
|
5,742
|
|
(5,383
|
)
|
359
|
|
||||
Total other long-term assets
|
662,430
|
|
(5,383
|
)
|
657,047
|
|
||||
Total assets and Total capitalization and liabilities
|
4,481,558
|
|
(5,383
|
)
|
4,476,175
|
|
||||
Long-term debt, net
|
880,546
|
|
(5,383
|
)
|
875,163
|
|
||||
Total capitalization
|
2,631,164
|
|
(5,383
|
)
|
2,625,781
|
|
||||
Hawaii Electric Light
|
|
|
|
|||||||
Unamortized debt expense
|
1,494
|
|
(1,420
|
)
|
74
|
|
||||
Total other long-term assets
|
130,749
|
|
(1,420
|
)
|
129,329
|
|
||||
Total assets and Total capitalization and liabilities
|
955,935
|
|
(1,420
|
)
|
954,515
|
|
||||
Long-term debt, net
|
215,000
|
|
(1,420
|
)
|
213,580
|
|
||||
Total capitalization
|
514,702
|
|
(1,420
|
)
|
513,282
|
|
||||
Maui Electric
|
|
|
|
|||||||
Unamortized debt expense
|
1,105
|
|
(1,041
|
)
|
64
|
|
||||
Total other long-term assets
|
115,148
|
|
(1,041
|
)
|
114,107
|
|
||||
Total assets and Total capitalization and liabilities
|
831,201
|
|
(1,041
|
)
|
830,160
|
|
||||
Long-term debt, net
|
191,000
|
|
(1,041
|
)
|
189,959
|
|
||||
Total capitalization
|
459,725
|
|
(1,041
|
)
|
458,684
|
|
•
|
Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income.
|
•
|
Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes.
|
•
|
Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables).
|
•
|
Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost.
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
HEI consolidated
|
|
|
|
|
|
|
|
||||||||
HMSA costs
|
$
|
7
|
|
|
$
|
8
|
|
|
$
|
21
|
|
|
$
|
22
|
|
HMSA expense*
|
5
|
|
|
6
|
|
|
15
|
|
|
16
|
|
||||
HDS costs
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
HDS expense*
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
||||||||
HMSA costs
|
5
|
|
|
6
|
|
|
17
|
|
|
17
|
|
||||
HMSA expense*
|
3
|
|
|
4
|
|
|
10
|
|
|
11
|
|
||||
HDS costs
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
HDS expense*
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
(in thousands, except per
|
|
Three months ended September 30
|
|
%
|
|
|
|||||||
share amounts)
|
|
2016
|
|
2015
|
|
change
|
|
Primary reason(s)*
|
|||||
Revenues
|
|
$
|
646,055
|
|
|
$
|
717,176
|
|
|
(10
|
)
|
|
Decrease for the electric utility segment, partly offset by increase for the bank segment
|
Operating income
|
|
105,442
|
|
|
97,095
|
|
|
9
|
|
|
Increases for the electric utility and bank segments, partly offset by higher loss for the “other” segment
|
||
Merger termination fee
|
|
90,000
|
|
|
—
|
|
|
NM
|
|
|
See Note 2 of the Consolidated Financial Statements.
|
||
Net income for common stock
|
|
127,142
|
|
|
50,673
|
|
|
151
|
|
|
Merger termination fee at corporate (in the “other” segment) and higher net income for the electric utility and bank segments
|
||
Basic earnings per common share
|
|
$
|
1.17
|
|
|
$
|
0.47
|
|
|
149
|
|
|
Higher net income, partly offset by the impact of higher weighted average shares outstanding
|
Weighted-average number of common shares outstanding
|
|
108,268
|
|
|
107,457
|
|
|
1
|
|
|
Issuances of shares under the HEI Dividend Reinvestment and Stock Purchase Plan and other plans
|
(in thousands, except per
|
|
Nine months ended September 30
|
|
%
|
|
|
|||||||
share amounts)
|
|
2016
|
|
2015
|
|
change
|
|
Primary reason(s)*
|
|||||
Revenues
|
|
$
|
1,763,259
|
|
|
$
|
1,978,950
|
|
|
(11
|
)
|
|
Decrease for the electric utility segment, partly offset by increase for the bank segment
|
Operating income
|
|
259,748
|
|
|
239,331
|
|
|
9
|
|
|
Increases at all segments
|
||
Merger termination fee
|
|
90,000
|
|
|
—
|
|
|
NM
|
|
|
See Note 2 of the Consolidated Financial Statements.
|
||
Net income for common stock
|
|
203,622
|
|
|
117,557
|
|
|
73
|
|
|
Merger termination fee at corporate (in the “other” segment) and higher net income for the electric utility and bank segments
|
||
Basic earnings per common share
|
|
$
|
1.89
|
|
|
$
|
1.11
|
|
|
70
|
|
|
Higher net income, partly offset by the impact of higher weighted average shares outstanding
|
Weighted-average number of common shares outstanding
|
|
107,951
|
|
|
106,067
|
|
|
2
|
|
|
Issuances of shares under the HEI Dividend Reinvestment and Stock Purchase Plan and other plans
|
*
|
Also, see segment discussions which follow.
|
|
Change in 4.60%
|
Impact on HEI
|
Impact on the
|
Actuarial Assumption
|
assumption in basis points
|
consolidated PBO
|
Utilities PBO
|
Pension benefits discount rate
|
- 100/+100
|
$320 million/$(250) million
|
$300 million/$(234) million
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
|
|
||||||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Primary reason(s)
|
||||||||
Revenues
|
|
$
|
94
|
|
|
$
|
(42
|
)
|
|
$
|
262
|
|
|
$
|
(4
|
)
|
|
|
Operating income (loss)
|
|
(7,097
|
)
|
|
(6,364
|
)
|
|
(18,621
|
)
|
|
(28,282
|
)
|
|
Lower merger and spin-off-related expenses (including expense reimbursements from NEE and insurers) in the first nine months of 2016 (see below)
|
||||
Merger termination fee
|
|
90,000
|
|
|
—
|
|
|
90,000
|
|
|
—
|
|
|
See Note 2 of the Consolidated Financial Statements.
|
||||
Net income (loss)
|
|
65,064
|
|
|
(5,784
|
)
|
|
54,362
|
|
|
(24,941
|
)
|
|
Merger termination fee and $8 million of tax benefits on previously non-deductible expenses related to the previously proposed merger with NEE and spin-off of ASBH
|
(dollars in millions)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||
Short-term borrowings—other than bank
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
103
|
|
|
3
|
%
|
Long-term debt, net—other than bank
|
|
1,579
|
|
|
43
|
|
|
1,578
|
|
|
43
|
|
||
Preferred stock of subsidiaries
|
|
34
|
|
|
1
|
|
|
34
|
|
|
1
|
|
||
Common stock equity
|
|
2,068
|
|
|
56
|
|
|
1,928
|
|
|
53
|
|
||
|
|
$
|
3,681
|
|
|
100
|
%
|
|
$
|
3,643
|
|
|
100
|
%
|
|
|
Average balance
|
|
Balance
|
||||||||
(in millions)
|
|
Nine months ended September 30, 2016
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||
Short-term borrowings
1
|
|
|
|
|
|
|
|
|
|
|||
Commercial paper
|
|
$
|
58
|
|
|
$
|
—
|
|
|
$
|
103
|
|
Line of credit draws
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Undrawn capacity under HEI’s line of credit facility
|
|
|
|
150
|
|
|
150
|
|
|
Fitch
|
Moody’s
|
S&P
|
Long-term issuer default and senior unsecured debt; senior unsecured debt; and corporate credit; respectively
|
BBB
|
*
|
BBB-
|
Commercial paper
|
F3
|
P-3
|
A-3
|
Outlook
|
Stable
|
Stable
|
Stable
|
Three months ended September 30
|
|
Increase
|
|
|
|||||||||||
2016
|
|
2015
|
|
(decrease)
|
|
(dollars in millions, except per barrel amounts)
|
|||||||||
$
|
572
|
|
|
$
|
648
|
|
|
$
|
(76
|
)
|
|
|
Revenues.
Net decrease largely due to:
|
||
|
|
|
|
|
$
|
(59
|
)
|
|
lower fuel prices
|
||||||
|
|
|
|
|
(17
|
)
|
|
lower KWH generated
|
|||||||
|
|
|
|
|
(4
|
)
|
|
lower purchased power expense
|
|||||||
|
|
|
|
|
4
|
|
|
higher RAM
|
|||||||
129
|
|
|
196
|
|
|
(67
|
)
|
|
|
Fuel oil expense.
Decrease due to lower fuel cost and lower KWH generated
|
|||||
158
|
|
|
161
|
|
|
(3
|
)
|
|
|
Purchased power expense.
Decrease due to lower purchased power energy prices
|
|||||
95
|
|
|
104
|
|
|
(9
|
)
|
|
|
Operation and maintenance expenses
. Decrease due to:
|
|||||
|
|
|
|
|
(5
|
)
|
|
write off of ERP software costs in 2015
|
|||||||
|
|
|
|
|
(3
|
)
|
|
lower overhaul costs due to fewer overhauls performed
|
|||||||
|
|
|
|
|
(1
|
)
|
|
lower LNG consultant costs
|
|||||||
101
|
|
|
106
|
|
|
(5
|
)
|
|
|
Other expenses.
Decrease in revenue taxes due to lower revenue, partly offset by higher depreciation expense for plant investments
|
|||||
90
|
|
|
83
|
|
|
7
|
|
|
|
Operating income.
Increase due to an overall decrease in expenses
|
|||||
47
|
|
|
43
|
|
|
4
|
|
|
|
Net income for common stock.
Increase due to higher operating income
|
|||||
|
|
|
|
|
|
|
|
||||||||
2,372
|
|
|
2,468
|
|
|
(96
|
)
|
|
|
Kilowatthour sales (millions)
|
|||||
72.3
|
|
|
74.9
|
|
|
(2.6
|
)
|
|
|
Wet-bulb temperature (Oahu average; degrees Fahrenheit)
|
|||||
1,496
|
|
|
1,711
|
|
|
(215
|
)
|
|
|
Cooling degree days (Oahu)
|
|||||
$
|
57.72
|
|
|
$
|
81.35
|
|
|
$
|
(23.63
|
)
|
|
|
Average fuel oil cost per barrel
|
Nine months ended September 30
|
|
Increase
|
|
|
|||||||||||
2016
|
|
2015
|
|
(decrease)
|
|
(dollars in millions, except per barrel amounts)
|
|||||||||
$
|
1,550
|
|
|
$
|
1,780
|
|
|
$
|
(230
|
)
|
|
|
Revenues.
Net decrease largely due to:
|
||
|
|
|
|
|
$
|
(191
|
)
|
|
lower fuel prices
|
||||||
|
|
|
|
|
(37
|
)
|
|
lower purchased power expense
|
|||||||
|
|
|
|
|
(13
|
)
|
|
lower KWH generated
|
|||||||
|
|
|
|
|
12
|
|
|
higher RAM
|
|||||||
334
|
|
|
519
|
|
|
(185
|
)
|
|
|
Fuel oil expense.
Decrease largely due to lower fuel prices and lower KWH generated
|
|||||
413
|
|
|
446
|
|
|
(33
|
)
|
|
|
Purchased power expense.
Decrease due to lower purchased power energy prices
|
|||||
298
|
|
|
307
|
|
|
(8
|
)
|
|
|
Operation and maintenance expenses
. Net decrease due to:
|
|||||
|
|
|
|
|
(6
|
)
|
|
lower transmission, distribution and generation costs due to:
-lower vegetation management costs,
-less boiler and steam maintenance work,
-storm repair costs incurred in 2015 and
-less MATS compliance costs
|
|||||||
|
|
|
|
|
(5
|
)
|
|
write off of ERP software costs in 2015
|
|||||||
|
|
|
|
|
(1
|
)
|
|
2015 Smart Grid costs
|
|||||||
|
|
|
|
|
(1
|
)
|
|
lower bad debt reserve for one customer account
|
|||||||
|
|
|
|
|
4
|
|
|
higher PSIP consultant costs
|
|||||||
|
|
|
|
|
2
|
|
|
higher LNG consultant costs
|
|||||||
289
|
|
|
302
|
|
|
(13
|
)
|
|
|
Other expenses.
Net decrease in revenue taxes due to lower revenue, partly offset by higher depreciation expense for plant investments
|
|||||
216
|
|
|
206
|
|
|
10
|
|
|
|
Operating income.
Increase due to an overall decrease in expenses
|
|||||
108
|
|
|
103
|
|
|
5
|
|
|
|
Net income for common stock.
Increase due to higher operating income
|
|||||
|
|
|
|
|
|
|
|
||||||||
6,613
|
|
|
6,656
|
|
|
(43
|
)
|
|
|
Kilowatthour sales (millions)
|
|||||
69.8
|
|
|
70.2
|
|
|
(0.4
|
)
|
|
|
Wet-bulb temperature (Oahu average; degrees Fahrenheit)
|
|||||
3,637
|
|
|
3,687
|
|
|
(50
|
)
|
|
|
Cooling degree days (Oahu)
|
|||||
$
|
52.06
|
|
|
$
|
79.13
|
|
|
$
|
(27.07
|
)
|
|
|
Average fuel oil cost per barrel
|
||
459,590
|
|
|
457,051
|
|
|
2,539
|
|
|
|
Customer accounts (end of period)
|
%
|
|
Return on rate base (RORB)*
|
|
ROACE**
|
|
Rate-making ROACE***
|
|||||||||||||||||||||
Twelve months ended September 30, 2016
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|||||||||
Utility returns
|
|
7.31
|
|
|
7.61
|
|
|
7.28
|
|
|
7.94
|
|
|
8.46
|
|
|
8.45
|
|
|
8.91
|
|
|
8.82
|
|
|
8.74
|
|
PUC-allowed returns
|
|
8.11
|
|
|
8.31
|
|
|
7.34
|
|
|
10.00
|
|
|
10.00
|
|
|
9.00
|
|
|
10.00
|
|
|
10.00
|
|
|
9.00
|
|
Difference
|
|
(0.80
|
)
|
|
(0.70
|
)
|
|
(0.06
|
)
|
|
(2.06
|
)
|
|
(1.54
|
)
|
|
(0.55
|
)
|
|
(1.09
|
)
|
|
(1.18
|
)
|
|
(0.26
|
)
|
•
|
the effective date for financial reporting purposes 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 (see “Decoupling” in Note 4 of the Consolidated Financial Statements),
|
•
|
the modification to the RBA interest rate per the PUC's February 2014 decision on decoupling (as discussed in Note
4
of the Consolidated Financial Statements), and
|
Test year
(dollars in millions)
|
|
Date
(filed/
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
2017
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Hawaii Electric Light
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2010
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
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
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Request
|
|
8/16/12
|
|
$
|
19.8
|
|
|
4.2
|
|
|
10.25
|
|
|
8.30
|
|
|
$
|
455
|
|
|
57.05
|
|
|
|
Closed
|
|
3/27/13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2016
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Request
|
|
9/19/16
|
|
$
|
19.3
|
|
|
6.5
|
|
|
10.60
|
|
|
8.44
|
|
|
$
|
479
|
|
|
57.12
|
|
|
|
Maui Electric
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2012
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
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
(8)
|
|
12/30/14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
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 the decoupling mechanism and began tracking the target revenues and actual recorded revenues via a revenue balancing account. Hawaii Electric Light also reset the heat rates and implemented heat rate deadbands and the PPAC, which provides a surcharge mechanism that more closely aligns cost recovery with costs incurred. The revised tariffs reflect a lower increase in annual revenue requirement compared to the interim increase due to factors that became effective concurrently with the revised tariffs (lower depreciation rates and lower ROACE) and therefore, no refund to customers was required.
|
(6)
|
See “Hawaii Electric Light 2016 test year rate case” below.
|
(8)
|
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, ordering 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.
|
•
|
In May 2012, Hawaii Electric Light signed a PPA, which the PUC approved in December 2013, with Hu Honua Bioenergy, LLC (Hu Honua) for 21.5 MW of renewable, dispatchable firm capacity fueled by locally grown biomass from a facility on the island of Hawaii. Per the terms of the PPA, the Hu Honua plant was scheduled to be in service in 2016. However, Hu Honua encountered construction delays, failed to meet its current obligations under the PPA and failed to provide adequate assurances that it could perform or had the financial means to perform. Hawaii Electric Light terminated the PPA on March 1, 2016. Hawaii Electric Light and Hu Honua are currently in discussions regarding the possibility of reinstating the PPA under revised terms and conditions.
|
•
|
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. An application for PUC approval of an amendment to the PPA was filed in April 2014 and the PUC approved the amendment in June 2016
.
|
•
|
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. In September 2015, the PUC approved Hawaiian Electric's application with conditions and limitations. See "Schofield Generating Station Project" in Note 4 of the Consolidated Financial Statements.
|
•
|
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. In September 2015, Anaergia Services, Maui Energy park and Maui Resource Recovery Facility filed a Petition for Declaratory Order, asking the PUC to find that Hawaiian Electric and Maui Electric have violated Hawaii state law and clear legislative policy by wrongfully refusing and failing to forward several bona fide requests for preferential rates for the purchase of firm renewable energy produced in conjunction with agricultural activities to the PUC for approval. The PUC held a hearing in March 2016. In April 2016, the PUC’s Hearing Officer issued a recommended D&O that confirms Maui Electric abided by state law and the PUC concurred with that recommendation in their D&O issued in September 2016.
|
•
|
In December 2013, Hawaiian Electric requested PUC approval for a waiver of the Na Pua Makani Power Partners, LLC’s (NPM) proposed 24-MW wind farm located in the Kahuku area on Oahu from the competitive bidding process and the PPA for Renewable As-Available Energy dated October 3, 2013 between Hawaiian Electric and NPM for the proposed 24-MW wind farm. In December 2014, the PUC approved both the waiver request and the PPA. On September 15, 2016, Hawaiian Electric filed the Amended and Restated PPA, dated August 12, 2016, which reflects the completion of the interconnection requirements study, including, among other things, amendments related to the final design of the facility, scope of work, cost, schedule and reporting milestones.
|
•
|
In July 2015, the PUC approved the 27.6 MW Waianae Solar project that is being developed by Eurus Energy America. It is expected to be in service at the end of 2016, at which time it will be the largest solar project in Hawaii.
|
•
|
In July 2015, Maui Electric signed two PPAs, with Kuia Solar and South Maui Renewable Resources (which subsequently assigned its PPA to SSA Solar of HI 3, LLC), each for a 2.87-MW solar facility. In February 2016, the PUC approved both PPAs, subject to certain conditions and modifications.
|
•
|
In September 2015, the PUC approved Hawaiian Electric’s 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. Renewable Energy Group has supplied 3 million to 7 million gallons per year to CIP CT-1 under its contract with Hawaiian Electric set to expire November 2016. The
|
•
|
In October 2015, the Utilities filed with the PUC a proposal for a Community-Based Renewable Energy program and tariff that would allow customers who cannot, or chose not to, take advantage of rooftop solar to receive the benefits of renewable energy to help offset their monthly electric bills and support clean energy for Hawaii. In November 2015, the PUC suspended the filing and opened a docket to investigate the matter. In June 2016, the PUC proposed a draft program, and the Utilities and other participating parties filed comments on the draft program. As part of the investigatory docket, on September 28, 2016, the PUC held an informal technical conference with the parties to establish and facilitate a constructive dialogue toward the development of a comprehensive community-based renewable energy program and tariff.
|
•
|
On May 5, 2016, Maui Electric filed a request for the PUC to open a docket and assign an Independent Observer to oversee the Maui Electric Dispatchable Firm Generation Request for Proposals. The solicitation intends to seek approximately 20 MW of new renewable generation capacity and approximately 20 MW of fuel flexible firm generation resources on the island of Maui by 2022, as proposed in the PSIP Update Report.
|
•
|
On June 6, 2016, Hawaiian Electric filed a request for the PUC to open a docket and assign an Independent Observer to oversee the Hawaiian Electric Renewable Energy Request for Proposals. The solicitation intends to seek new renewable energy generation on the island of Oahu to be placed into service by the end of 2020, consistent with the Five-Year Action Plan proposed in the PSIP Update Report.
|
•
|
In July 2016, Hawaiian Electric announced plans to build, own and operate a 20-MW solar facility in conjunction with the Department of the Navy at a Navy/Air Force joint base, subject to PUC approval. On October 3, 2016, Hawaiian Electric filed with the PUC a request to waive the $67 million project from the Competitive Bidding Framework and to approve expenditures for the project. The renewable energy generated by the solar facility will feed into Oahu’s electrical grid at a cost of 9.54 cents per kilowatt-hour.
|
•
|
The Utilities began accepting energy from feed-in tariff projects in 2011. As of
September 30, 2016
, there were 23 MW, 3 MW and 4 MW of installed feed-in tariff capacity from renewable energy technologies at Hawaiian Electric, Hawaii Electric Light and Maui Electric, respectively.
|
•
|
As of
September 30, 2016
, there were approximately 293 MW, 69 MW and 77 MW of installed distributed renewable energy technologies (mainly PV) at Hawaiian Electric, Hawaii Electric Light and Maui Electric, respectively, for tariff-based customer generation programs, namely NEM, Customer Grid Supply (CGS) and Customer Self Supply (CSS).
|
(dollars in millions)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||
Short-term borrowings
|
|
$
|
21
|
|
|
1
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Long-term debt, net
|
|
1,279
|
|
|
41
|
|
|
1,279
|
|
|
42
|
|
||
Preferred stock
|
|
34
|
|
|
1
|
|
|
34
|
|
|
1
|
|
||
Common stock equity
|
|
1,767
|
|
|
57
|
|
|
1,728
|
|
|
57
|
|
||
|
|
$
|
3,101
|
|
|
100
|
%
|
|
$
|
3,041
|
|
|
100
|
%
|
|
|
Average balance
|
|
Balance
|
||||||||
(in millions)
|
|
Nine months ended September 30, 2016
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||
Short-term borrowings
1
|
|
|
|
|
|
|
|
|
|
|||
Commercial paper
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Line of credit draws
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Borrowings from HEI
|
|
3
|
|
|
21
|
|
|
—
|
|
|||
Undrawn capacity under line of credit facility
|
|
|
|
200
|
|
|
200
|
|
|
Fitch
|
Moody’s
|
S&P
|
Long-term issuer default, issuer and corporate credit, respectively
|
BBB+
|
Baa2
|
BBB-
|
Commercial paper
|
F2
|
P-2
|
A-3
|
Senior unsecured debt/special purpose revenue bonds
|
A-
|
Baa2
|
BBB-
|
Hawaiian Electric-obligated preferred securities of trust subsidiary
|
*
|
Baa3
|
BB
|
Cumulative preferred stock (selected series)
|
*
|
Ba1
|
*
|
Subordinated debt
|
BBB
|
*
|
*
|
Outlook
|
Stable
|
Stable
|
Stable
|
|
Nine months ended September 30
|
|
|
||||||||
(in thousands)
|
2016
|
|
2015
|
|
Change
|
||||||
Net cash provided by operating activities
|
$
|
275,271
|
|
|
$
|
201,586
|
|
|
$
|
73,685
|
|
Net cash used in investing activities
|
(226,036
|
)
|
|
(230,116
|
)
|
|
4,080
|
|
|||
Net cash provided by (used in) financing activities
|
(50,707
|
)
|
|
25,472
|
|
|
(76,179
|
)
|
•
|
Higher cash from a refund of federal income taxes in 2016 due to the extension of bonus depreciation enacted in the fourth quarter of 2015 and lower revenue taxes paid resulting from lower revenues due largely to lower fuel prices.
|
•
|
Lower payments for fuel oil and the timing of various payments (see change in “Decrease in accounts payable” on the Hawaiian Electric Consolidated Statements of Cash Flows)
|
|
|
Three months ended September 30
|
|
Increase
|
|
|
||||||||
(in millions)
|
|
2016
|
|
2015
|
|
(decrease)
|
|
Primary reason(s)
|
||||||
Interest income
|
|
$
|
55
|
|
|
$
|
51
|
|
|
$
|
4
|
|
|
The increase in interest income was the result of higher average earning asset balances and an increase in yields on earning assets. ASB’s average loan portfolio balance for the three months ended September 30, 2016 increased by $253 million compared to the same period in 2015 as average commercial real estate, consumer, home equity lines of credit and residential balances increased by $225 million, $42 million, $36 million and $12 million, respectively. The growth in these loan portfolios was reflective of ASB’s portfolio mix target and loan growth strategy. The average commercial loan balance decreased by $63 million primarily due to a decrease in the syndicated national credit loan portfolio. The yield on earning assets increased by 6 basis points as the adjustable rate loans repriced upward with the increase in the prime rate at end of 2015 and there was a shift in mix of the loan portfolio with the growth of the commercial real estate and consumer loan portfolios, which resulted in an increase in loan portfolio yields of 12 basis points. The average investment securities portfolio balance increased by $166 million due to the use of excess liquidity to purchase investments.
|
Noninterest income
|
|
19
|
|
|
18
|
|
|
1
|
|
|
Noninterest income increased slightly for the three months ended September 30, 2016 compared to noninterest income for the same period in 2015 as higher mortgage banking income and bank-owned life insurance income was largely offset by a lower gain on sale of real estate.
|
|||
Revenues
|
|
74
|
|
|
69
|
|
|
5
|
|
|
|
|||
Interest expense
|
|
3
|
|
|
3
|
|
|
—
|
|
|
Interest expense was flat as growth in the deposit liabilities was primarily in low rate core deposits, which had a minimal impact to interest expense. Average deposit balances for the three months ended September 30, 2016 increased by $477 million compared to the same period in 2015 due to an increase in core deposits and term certificates of $333 million and $144 million, respectively. Other borrowings decreased by $79 million primarily due to a decrease in repurchase agreements. The interest-bearing liability rate increased by 3 basis points.
|
|||
Provision for loan losses
|
|
6
|
|
|
3
|
|
|
3
|
|
|
The provision for loan losses increased by $2.8 million primarily due to increased reserves for growth in the loan portfolio, additional loan loss reserves for commercial loans due to downgrades of specific commercial credits and additional reserves for the consumer loan portfolio. Delinquency rates have decreased from 0.58% at September 30, 2015 to 0.51% at September 30, 2016. The net charge-off ratio for the three months ended September 30, 2016 was 0.20% compared to a net charge-off ratio of 0.10% for the same period in 2015. The increase in net charge-offs were primarily due to an increase in consumer loan portfolio charge-offs as a result of ASB’s strategic expansion of its unsecured consumer loan product offering with risk-based pricing and loan charge-offs related to specific commercial borrowers.
|
|||
Noninterest expense
|
|
42
|
|
|
42
|
|
|
—
|
|
|
Noninterest expense for the three months ended September 30, 2016 was flat compared to the same period in 2015.
|
|||
Expenses
|
|
51
|
|
|
48
|
|
|
3
|
|
|
|
|||
Operating income
|
|
23
|
|
|
21
|
|
|
2
|
|
|
Higher net interest income and noninterest income was partly offset by higher provision loan losses.
|
|||
Net income
|
|
15
|
|
|
13
|
|
|
2
|
|
|
|
|
|
Nine months ended September 30
|
|
Increase
|
|
|
||||||||
(in millions)
|
|
2016
|
|
2015
|
|
(decrease)
|
|
Primary reason(s)
|
||||||
Interest income
|
|
$
|
163
|
|
|
$
|
148
|
|
|
$
|
15
|
|
|
The increase in interest income was the result of higher average earning asset balances and an increase in yields on earning assets. ASB’s average loan portfolio balance for the nine months ended September 30, 2016 increased by $232 million compared to the same period in 2015 as average commercial real estate, home equity lines of credit, consumer and residential balances increased by $208 million, $33 million, $25 million and $16 million, respectively. The growth in these loan portfolios was reflective of ASB’s portfolio mix target and loan growth strategy. The average commercial loan balance decreased $52 million primarily due to a decrease in syndicated national credit loan portfolio. The yield on earning assets increased by 8 basis points as adjustable rate loans repriced upward with the increase in the prime rate at end of 2015 and there was a shift in the mix of the loan portfolio with the growth in the commercial real estate and consumer loan portfolios, which resulted in an increase in loan portfolio yields of 11 basis points. The average investment securities portfolio balance increased by $242 million due to the use of excess liquidity to purchase investments. The average FHLB stock balance decreased by $28 million as FHLB stock in excess of the required holdings was repurchased by the FHLB.
|
Noninterest income
|
|
50
|
|
|
51
|
|
|
(1
|
)
|
|
Noninterest income decreased slightly for the nine months ended September 30, 2016 compared to noninterest income for the nine months ended September 30, 2015 as higher gain on sale of securities and higher fee income on other financial products were more than offset by lower gain on sale of real estate and lower deposit fee income.
|
|||
Revenues
|
|
213
|
|
|
199
|
|
|
14
|
|
|
|
|||
Interest expense
|
|
10
|
|
|
9
|
|
|
1
|
|
|
The increase in interest expense for the nine months ended September 30, 2016 compared to the same period in 2015 was primarily due to the increase in term certificates. Average deposit balances for the nine months ended September 30, 2016 increased by $418 million compared to the same period in 2015 due to an increase in core deposits and term certificates of $321 million and $97 million, respectively. Other borrowings decreased by $33 million primarily due to a decrease in repurchase agreements. The interest-bearing liability rate increased by 2 basis points.
|
|||
Provision for loan losses
|
|
15
|
|
|
5
|
|
|
10
|
|
|
The provision for loan losses increased by $9.8 million primarily due to increased reserves for growth in the loan portfolio, additional loan loss reserves for the consumer loan portfolio and loan loss reserves for commercial loans due to downgrades of specific commercial credits. The provision for loan losses for the nine months ended September 30, 2015 included the reversal of the Pahoa lava reserves. Delinquency rates have decreased from 0.58% at September 30, 2015 to 0.51% at September 30, 2016. The net charge-off ratio for the nine months ended September 30, 2016 was 0.19% compared to a net charge-off ratio of 0.08% for the same period in 2015. The increase in net charge-offs were due to an increase in consumer loan portfolio charge-offs as a result of ASB’s strategic expansion of its unsecured consumer loan product offering with risk-based pricing and loan charge-offs related to specific commercial borrowers.
|
|||
Noninterest expense
|
|
126
|
|
|
124
|
|
|
2
|
|
|
The increase in noninterest expense for the nine months ended September 30, 2016 was primarily due to the costs related to the replacement and upgrade of the electronic banking platform.
|
|||
Expenses
|
|
151
|
|
|
138
|
|
|
13
|
|
|
|
|||
Operating income
|
|
62
|
|
|
61
|
|
|
1
|
|
|
Higher net interest income was largely offset by higher provision loan losses, lower noninterest income and higher noninterest expense.
|
|||
Net income
|
|
41
|
|
|
40
|
|
|
1
|
|
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||
(percent)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Return on average assets
|
|
0.97
|
|
|
0.92
|
|
|
0.89
|
|
|
0.92
|
|
Return on average equity
|
|
10.36
|
|
|
9.73
|
|
|
9.50
|
|
|
9.69
|
|
Net interest margin
|
|
3.57
|
|
|
3.53
|
|
|
3.59
|
|
|
3.52
|
|
Three months ended September 30
|
|
2016
|
|
2015
|
||||||||||||||||||
(dollars in thousands)
|
|
Average
balance |
|
Interest
income/
expense
|
|
Yield/
rate (%) |
|
Average
balance |
|
Interest
income/
expense |
|
Yield/
rate (%) |
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-earning deposits
|
|
$
|
97,885
|
|
|
$
|
124
|
|
|
0.50
|
|
|
$
|
111,574
|
|
|
$
|
72
|
|
|
0.25
|
|
FHLB Stock
|
|
11,218
|
|
|
54
|
|
|
1.89
|
|
|
10,748
|
|
|
14
|
|
|
0.51
|
|
||||
Available-for-sale investment securities
|
|
928,698
|
|
|
4,581
|
|
|
1.97
|
|
|
762,572
|
|
|
4,127
|
|
|
2.17
|
|
||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential 1-4 family
|
|
2,077,135
|
|
|
22,044
|
|
|
4.24
|
|
|
2,065,421
|
|
|
22,493
|
|
|
4.36
|
|
||||
Commercial real estate
|
|
888,886
|
|
|
9,113
|
|
|
4.08
|
|
|
663,805
|
|
|
6,690
|
|
|
4.00
|
|
||||
Home equity line of credit
|
|
864,589
|
|
|
7,204
|
|
|
3.31
|
|
|
828,096
|
|
|
6,684
|
|
|
3.20
|
|
||||
Residential land
|
|
18,764
|
|
|
282
|
|
|
6.00
|
|
|
17,876
|
|
|
268
|
|
|
5.97
|
|
||||
Commercial
|
|
750,366
|
|
|
7,327
|
|
|
3.87
|
|
|
813,475
|
|
|
7,376
|
|
|
3.58
|
|
||||
Consumer
|
|
159,226
|
|
|
4,474
|
|
|
11.18
|
|
|
117,699
|
|
|
2,902
|
|
|
9.79
|
|
||||
Total loans
1,2
|
|
4,758,966
|
|
|
50,444
|
|
|
4.22
|
|
|
4,506,372
|
|
|
46,413
|
|
|
4.10
|
|
||||
Total interest-earning assets
1
|
|
5,796,767
|
|
|
55,203
|
|
|
3.80
|
|
|
5,391,266
|
|
|
50,626
|
|
|
3.74
|
|
||||
Allowance for loan losses
|
|
(55,480
|
)
|
|
|
|
|
|
|
|
(46,726
|
)
|
|
|
|
|
|
|
||||
Non-interest-earning assets
|
|
514,120
|
|
|
|
|
|
|
|
|
486,995
|
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
6,255,407
|
|
|
|
|
|
|
|
|
$
|
5,831,535
|
|
|
|
|
|
|
|
||
Liabilities and shareholder’s equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Savings
|
|
$
|
2,139,863
|
|
|
$
|
358
|
|
|
0.07
|
|
|
$
|
1,990,016
|
|
|
$
|
319
|
|
|
0.06
|
|
Interest-bearing checking
|
|
837,480
|
|
|
43
|
|
|
0.02
|
|
|
784,265
|
|
|
35
|
|
|
0.02
|
|
||||
Money market
|
|
161,149
|
|
|
52
|
|
|
0.13
|
|
|
164,200
|
|
|
52
|
|
|
0.13
|
|
||||
Time certificates
|
|
597,537
|
|
|
1,418
|
|
|
0.94
|
|
|
453,460
|
|
|
949
|
|
|
0.83
|
|
||||
Total interest-bearing deposits
|
|
3,736,029
|
|
|
1,871
|
|
|
0.20
|
|
|
3,391,941
|
|
|
1,355
|
|
|
0.16
|
|
||||
Advances from Federal Home Loan Bank
|
|
100,000
|
|
|
792
|
|
|
3.10
|
|
|
101,739
|
|
|
794
|
|
|
3.05
|
|
||||
Securities sold under agreements to repurchase
|
|
161,652
|
|
|
672
|
|
|
1.63
|
|
|
238,822
|
|
|
721
|
|
|
1.18
|
|
||||
Total interest-bearing liabilities
|
|
3,997,681
|
|
|
3,335
|
|
|
0.33
|
|
|
3,732,502
|
|
|
2,870
|
|
|
0.30
|
|
||||
Non-interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
|
1,572,821
|
|
|
|
|
|
|
|
1,440,136
|
|
|
|
|
|
|
||||||
Other
|
|
101,759
|
|
|
|
|
|
|
|
105,804
|
|
|
|
|
|
|
||||||
Shareholder’s equity
|
|
583,146
|
|
|
|
|
|
|
|
553,093
|
|
|
|
|
|
|
||||||
Total liabilities and shareholder’s equity
|
|
$
|
6,255,407
|
|
|
|
|
|
|
|
$
|
5,831,535
|
|
|
|
|
|
|
||||
Net interest income
|
|
|
|
|
$
|
51,868
|
|
|
|
|
|
|
|
$
|
47,756
|
|
|
|
||||
Net interest margin (%)
3
|
|
|
|
|
|
|
|
3.57
|
|
|
|
|
|
|
|
|
3.53
|
|
Nine months ended September 30
|
|
2016
|
|
2015
|
||||||||||||||||||
(dollars in thousands)
|
|
Average
balance |
|
Interest
income/
expense
|
|
Yield/
rate (%) |
|
Average
balance |
|
Interest
income/
expense |
|
Yield/
rate (%) |
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-earning deposits
|
|
$
|
80,738
|
|
|
$
|
304
|
|
|
0.50
|
|
|
$
|
133,343
|
|
|
$
|
253
|
|
|
0.25
|
|
FHLB Stock
|
|
11,094
|
|
|
142
|
|
|
1.71
|
|
|
39,372
|
|
|
59
|
|
|
0.20
|
|
||||
Available-for-sale investment securities
|
|
892,726
|
|
|
13,773
|
|
|
2.06
|
|
|
650,645
|
|
|
10,258
|
|
|
2.10
|
|
||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential 1-4 family
|
|
2,076,308
|
|
|
66,565
|
|
|
4.27
|
|
|
2,059,921
|
|
|
67,714
|
|
|
4.38
|
|
||||
Commercial real estate
|
|
854,977
|
|
|
25,993
|
|
|
4.04
|
|
|
646,769
|
|
|
19,251
|
|
|
3.97
|
|
||||
Home equity line of credit
|
|
857,652
|
|
|
21,058
|
|
|
3.28
|
|
|
824,510
|
|
|
19,683
|
|
|
3.19
|
|
||||
Residential land
|
|
18,577
|
|
|
843
|
|
|
6.05
|
|
|
17,347
|
|
|
830
|
|
|
6.38
|
|
||||
Commercial
|
|
753,783
|
|
|
22,294
|
|
|
3.93
|
|
|
805,333
|
|
|
21,847
|
|
|
3.61
|
|
||||
Consumer
|
|
143,514
|
|
|
11,818
|
|
|
11.00
|
|
|
118,974
|
|
|
8,321
|
|
|
9.35
|
|
||||
Total loans
1,2
|
|
4,704,811
|
|
|
148,571
|
|
|
4.21
|
|
|
4,472,854
|
|
|
137,646
|
|
|
4.10
|
|
||||
Total interest-earning assets
1
|
|
5,689,369
|
|
|
162,790
|
|
|
3.81
|
|
|
5,296,214
|
|
|
148,216
|
|
|
3.73
|
|
||||
Allowance for loan losses
|
|
(52,902
|
)
|
|
|
|
|
|
|
|
(46,295
|
)
|
|
|
|
|
|
|
||||
Non-interest-earning assets
|
|
505,014
|
|
|
|
|
|
|
|
|
488,103
|
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
6,141,481
|
|
|
|
|
|
|
|
|
$
|
5,738,022
|
|
|
|
|
|
|
|
||
Liabilities and shareholder’s equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Savings
|
|
$
|
2,095,975
|
|
|
$
|
1,034
|
|
|
0.07
|
|
|
$
|
1,967,446
|
|
|
$
|
928
|
|
|
0.06
|
|
Interest-bearing checking
|
|
831,412
|
|
|
127
|
|
|
0.02
|
|
|
776,100
|
|
|
102
|
|
|
0.02
|
|
||||
Money market
|
|
164,596
|
|
|
157
|
|
|
0.13
|
|
|
163,659
|
|
|
152
|
|
|
0.12
|
|
||||
Time certificates
|
|
539,314
|
|
|
3,836
|
|
|
0.95
|
|
|
442,224
|
|
|
2,699
|
|
|
0.82
|
|
||||
Total interest-bearing deposits
|
|
3,631,297
|
|
|
5,154
|
|
|
0.19
|
|
|
3,349,429
|
|
|
3,881
|
|
|
0.15
|
|
||||
Advances from Federal Home Loan Bank
|
|
101,232
|
|
|
2,363
|
|
|
3.07
|
|
|
100,586
|
|
|
2,353
|
|
|
3.09
|
|
||||
Securities sold under agreements to repurchase
|
|
182,671
|
|
|
2,053
|
|
|
1.48
|
|
|
216,066
|
|
|
2,115
|
|
|
1.29
|
|
||||
Total interest-bearing liabilities
|
|
3,915,200
|
|
|
9,570
|
|
|
0.32
|
|
|
3,666,081
|
|
|
8,349
|
|
|
0.30
|
|
||||
Non-interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
|
1,549,467
|
|
|
|
|
|
|
|
|
1,413,351
|
|
|
|
|
|
|
|
||||
Other
|
|
100,210
|
|
|
|
|
|
|
|
|
111,175
|
|
|
|
|
|
|
|
||||
Shareholder’s equity
|
|
576,604
|
|
|
|
|
|
|
|
|
547,415
|
|
|
|
|
|
|
|
||||
Total liabilities and shareholder’s equity
|
|
$
|
6,141,481
|
|
|
|
|
|
|
|
|
$
|
5,738,022
|
|
|
|
|
|
|
|
||
Net interest income
|
|
|
|
|
$
|
153,220
|
|
|
|
|
|
|
|
|
$
|
139,867
|
|
|
|
|
||
Net interest margin (%)
3
|
|
|
|
|
|
|
|
3.59
|
|
|
|
|
|
|
|
|
3.52
|
|
1
|
Includes loans held for sale, at lower of cost or fair value.
|
2
|
Includes recognition of deferred loan fees of $0.6 million and $0.6 million for the three months ended
September 30, 2016
and 2015, respectively, and $2.1 million and $1.9 million for the nine months ended September 30, 2016 and 2015, respectively, together with interest accrued prior to suspension of interest accrual on nonaccrual loans.
|
3
|
Defined as net interest income as a percentage of average total interest-earning assets.
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||
(dollars in thousands)
|
|
Balance
|
|
% of total
|
|
Balance
|
|
% of total
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Residential 1-4 family
|
|
$
|
2,054,460
|
|
|
43.4
|
|
|
$
|
2,069,665
|
|
|
44.8
|
|
Commercial real estate
|
|
774,349
|
|
|
16.3
|
|
|
690,561
|
|
|
14.9
|
|
||
Home equity line of credit
|
|
859,952
|
|
|
18.1
|
|
|
846,294
|
|
|
18.3
|
|
||
Residential land
|
|
19,666
|
|
|
0.4
|
|
|
18,229
|
|
|
0.4
|
|
||
Commercial construction
|
|
140,758
|
|
|
3.0
|
|
|
100,796
|
|
|
2.2
|
|
||
Residential construction
|
|
15,073
|
|
|
0.3
|
|
|
14,089
|
|
|
0.3
|
|
||
Total real estate, net
|
|
3,864,258
|
|
|
81.5
|
|
|
3,739,634
|
|
|
80.9
|
|
||
Commercial
|
|
717,450
|
|
|
15.2
|
|
|
758,659
|
|
|
16.4
|
|
||
Consumer
|
|
158,065
|
|
|
3.3
|
|
|
123,775
|
|
|
2.7
|
|
||
|
|
4,739,773
|
|
|
100.0
|
|
|
4,622,068
|
|
|
100.0
|
|
||
Less: Deferred fees and discounts
|
|
(5,135
|
)
|
|
|
|
|
(6,249
|
)
|
|
|
|
||
Allowance for loan losses
|
|
(58,737
|
)
|
|
|
|
|
(50,038
|
)
|
|
|
|
||
Total loans, net
|
|
$
|
4,675,901
|
|
|
|
|
|
$
|
4,565,781
|
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
Outstanding balance (in thousands)
|
$
|
859,952
|
|
|
$
|
846,294
|
|
Percent of portfolio in first lien position
|
44.1
|
%
|
|
42.9
|
%
|
||
Net charge-off ratio
|
0.01
|
%
|
|
0.02
|
%
|
||
Delinquency ratio
|
0.27
|
%
|
|
0.25
|
%
|
|
|
|
|
|
|
End of draw period – interest only
|
|
Current
|
||||||||||||||||
September 30, 2016
|
|
Total
|
|
Interest only
|
|
2016-2017
|
|
2018-2020
|
|
Thereafter
|
|
amortizing
|
||||||||||||
Outstanding balance (in thousands)
|
|
$
|
859,952
|
|
|
$
|
657,203
|
|
|
$
|
9,543
|
|
|
$
|
134,302
|
|
|
$
|
513,358
|
|
|
$
|
202,749
|
|
% of total
|
|
100
|
%
|
|
76
|
%
|
|
1
|
%
|
|
15
|
%
|
|
60
|
%
|
|
24
|
%
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||
(dollars in thousands)
|
|
Balance
|
|
% of total
|
|
Balance
|
|
% of total
|
||||||
U.S. Treasury and federal agency obligations
|
|
$
|
189,372
|
|
|
19
|
%
|
|
$
|
212,959
|
|
|
26
|
%
|
Mortgage-related securities — FNMA, FHLMC and GNMA
|
|
807,612
|
|
|
81
|
|
|
607,689
|
|
|
74
|
|
||
Total available-for-sale investment securities
|
|
$
|
996,984
|
|
|
100
|
%
|
|
$
|
820,648
|
|
|
100
|
%
|
|
|
Nine months ended September 30
|
|
Year ended
December 31,
|
||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
2015
|
||||||
Allowance for loan losses, January 1
|
|
$
|
50,038
|
|
|
$
|
45,618
|
|
|
$
|
45,618
|
|
Provision for loan losses
|
|
15,266
|
|
|
5,436
|
|
|
6,275
|
|
|||
Less: net charge-offs
|
|
6,567
|
|
|
2,780
|
|
|
1,855
|
|
|||
Allowance for loan losses, end of period
|
|
$
|
58,737
|
|
|
$
|
48,274
|
|
|
$
|
50,038
|
|
Ratio of net charge-offs during the period to average loans outstanding (annualized)
|
|
0.19
|
%
|
|
0.08
|
%
|
|
0.04
|
%
|
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)
|
|
September 30, 2016
|
|
December 31, 2015
|
|
% change
|
|||||
Total assets
|
|
$
|
6,337
|
|
|
$
|
6,015
|
|
|
5
|
|
Available-for-sale investment securities
|
|
997
|
|
|
821
|
|
|
21
|
|
||
Loans receivable held for investment, net
|
|
4,676
|
|
|
4,566
|
|
|
2
|
|
||
Deposit liabilities
|
|
5,381
|
|
|
5,025
|
|
|
7
|
|
||
Other bank borrowings
|
|
265
|
|
|
329
|
|
|
(19
|
)
|
Change in interest rates
|
|
Change in NII
(gradual change in interest rates)
|
|
Change in EVE
(instantaneous change in interest rates)
|
||||||||
(basis points)
|
|
September 30, 2016
|
|
December 31, 2015
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
+300
|
|
2.0
|
%
|
|
1.6
|
%
|
|
(1.5
|
)%
|
|
(9.3
|
)%
|
+200
|
|
0.8
|
|
|
0.6
|
|
|
0.9
|
|
|
(5.3
|
)
|
+100
|
|
—
|
|
|
(0.1
|
)
|
|
1.9
|
|
|
(1.9
|
)
|
-100
|
|
(0.2
|
)
|
|
(0.5
|
)
|
|
(6.7
|
)
|
|
(1.2
|
)
|
|
Nine months ended September 30
|
|
Years ended December 31
|
|||||||||||||||||
|
2016
|
|
2015
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|||||||
HEI and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding interest on ASB deposits
|
5.34
|
|
|
3.68
|
|
|
3.68
|
|
|
3.80
|
|
|
3.55
|
|
|
3.30
|
|
|
3.24
|
|
Including interest on ASB deposits
|
5.04
|
|
|
3.54
|
|
|
3.54
|
|
|
3.65
|
|
|
3.42
|
|
|
3.15
|
|
|
3.04
|
|
Hawaiian Electric and Subsidiaries
|
4.18
|
|
|
4.03
|
|
|
3.97
|
|
|
4.04
|
|
|
3.72
|
|
|
3.37
|
|
|
3.52
|
|
HEI Exhibit 12.1
|
|
Hawaiian Electric Industries, Inc. and Subsidiaries
Computation of ratio of earnings to fixed charges, nine months ended September 30, 2016 and 2015 and years ended December 31, 2015, 2014, 2013, 2012 and 2011
|
|
|
|
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
|
|
Letter agreement dated July 28, 2016 and executed August 1, 2016 extending the term of the Power Purchase Agreement (PPA) between Hawaiian Electric Company and Kalaeloa Partners, L.P. dated as of October 14, 1988 (as amended)
|
|
|
|
Hawaiian Electric Exhibit 12.2
|
|
Hawaiian Electric Company, Inc. and Subsidiaries
Computation of ratio of earnings to fixed charges, nine months ended September 30, 2016 and 2015 and years ended December 31, 2015, 2014, 2013, 2012 and 2011
|
|
|
|
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: November 4, 2016
|
|
Date: November 4, 2016
|
Subject
:
|
Power Purchase Agreement (“PPA”) between Hawaiian Electric Company, Inc. (“Hawaiian Electric”) and Kalaeloa Partners, L.P. (“KPLP) dated as of October 14, 1988 (as amended)
|
Nine months ended September 30
|
|
2016 (1)
|
|
2016 (2)
|
|
2015 (1)
|
|
2015 (2)
|
||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total interest charges
|
|
$
|
61,648
|
|
|
$
|
66,802
|
|
|
$
|
62,333
|
|
|
$
|
66,214
|
|
Interest component of rentals
|
|
4,661
|
|
|
4,661
|
|
|
4,571
|
|
|
4,571
|
|
||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
2,082
|
|
|
2,082
|
|
|
2,256
|
|
|
2,256
|
|
||||
Total fixed charges
|
|
$
|
68,391
|
|
|
$
|
73,545
|
|
|
$
|
69,160
|
|
|
$
|
73,041
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax income from continuing operations
|
|
$
|
299,825
|
|
|
$
|
299,825
|
|
|
$
|
187,963
|
|
|
$
|
187,963
|
|
Fixed charges, as shown
|
|
68,391
|
|
|
73,545
|
|
|
69,160
|
|
|
73,041
|
|
||||
Interest capitalized
|
|
(2,716
|
)
|
|
(2,716
|
)
|
|
(2,548
|
)
|
|
(2,548
|
)
|
||||
Earnings available for fixed charges
|
|
$
|
365,500
|
|
|
$
|
370,654
|
|
|
$
|
254,575
|
|
|
$
|
258,456
|
|
Ratio of earnings to fixed charges
|
|
5.34
|
|
|
5.04
|
|
|
3.68
|
|
|
3.54
|
|
Years ended December 31
|
|
2015 (1)
|
|
2015 (2)
|
|
2014 (1)
|
|
2014 (2)
|
|
2013 (1)
|
|
2013 (2)
|
||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total interest charges
|
|
$
|
83,936
|
|
|
$
|
89,284
|
|
|
$
|
83,458
|
|
|
$
|
88,535
|
|
|
$
|
85,315
|
|
|
$
|
90,407
|
|
Interest component of rentals
|
|
6,065
|
|
|
6,065
|
|
|
6,366
|
|
|
6,366
|
|
|
6,345
|
|
|
6,345
|
|
||||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
2,977
|
|
|
2,977
|
|
|
2,952
|
|
|
2,952
|
|
|
2,886
|
|
|
2,886
|
|
||||||
Total fixed charges
|
|
$
|
92,978
|
|
|
$
|
98,326
|
|
|
$
|
92,776
|
|
|
$
|
97,853
|
|
|
$
|
94,546
|
|
|
$
|
99,638
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pretax income from continuing operations
|
|
$
|
252,898
|
|
|
$
|
252,898
|
|
|
$
|
263,708
|
|
|
$
|
263,708
|
|
|
$
|
247,946
|
|
|
$
|
247,946
|
|
Fixed charges, as shown
|
|
92,978
|
|
|
98,326
|
|
|
92,776
|
|
|
97,853
|
|
|
94,546
|
|
|
99,638
|
|
||||||
Interest capitalized
|
|
(3,265
|
)
|
|
(3,265
|
)
|
|
(3,954
|
)
|
|
(3,954
|
)
|
|
(7,097
|
)
|
|
(7,097
|
)
|
||||||
Earnings available for fixed charges
|
|
$
|
342,611
|
|
|
$
|
347,959
|
|
|
$
|
352,530
|
|
|
$
|
357,607
|
|
|
$
|
335,395
|
|
|
$
|
340,487
|
|
Ratio of earnings to fixed charges
|
|
3.68
|
|
|
3.54
|
|
|
3.80
|
|
|
3.65
|
|
|
3.55
|
|
|
3.42
|
|
Years ended December 31
|
|
2012 (1)
|
|
2012 (2)
|
|
2011 (1)
|
|
2011 (2)
|
||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total interest charges (3)
|
|
$
|
83,020
|
|
|
$
|
89,443
|
|
|
$
|
87,592
|
|
|
$
|
96,575
|
|
Interest component of rentals
|
|
6,493
|
|
|
6,493
|
|
|
4,757
|
|
|
4,757
|
|
||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
2,943
|
|
|
2,943
|
|
|
2,944
|
|
|
2,944
|
|
||||
Total fixed charges
|
|
$
|
92,456
|
|
|
$
|
98,879
|
|
|
$
|
95,293
|
|
|
$
|
104,276
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax income from continuing operations
|
|
$
|
217,064
|
|
|
$
|
217,064
|
|
|
$
|
215,686
|
|
|
$
|
215,686
|
|
Fixed charges, as shown
|
|
92,456
|
|
|
98,879
|
|
|
95,293
|
|
|
104,276
|
|
||||
Interest capitalized
|
|
(4,355
|
)
|
|
(4,355
|
)
|
|
(2,498
|
)
|
|
(2,498
|
)
|
||||
Earnings available for fixed charges
|
|
$
|
305,165
|
|
|
$
|
311,588
|
|
|
$
|
308,481
|
|
|
$
|
317,464
|
|
Ratio of earnings to fixed charges
|
|
3.30
|
|
|
3.15
|
|
|
3.24
|
|
|
3.04
|
|
(1)
|
Excluding interest on ASB deposits.
|
(2)
|
Including interest on ASB deposits.
|
|
|
Nine months ended September 30
|
|
Years ended December 31
|
||||||||||||||||||||||||
(dollars in thousands)
|
|
2016
|
|
2015
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total interest charges
|
|
$
|
50,174
|
|
|
$
|
49,800
|
|
|
$
|
67,178
|
|
|
$
|
66,132
|
|
|
$
|
64,130
|
|
|
$
|
62,056
|
|
|
$
|
60,031
|
|
Interest component of rentals
|
|
2,435
|
|
|
2,324
|
|
|
3,060
|
|
|
3,244
|
|
|
2,793
|
|
|
2,690
|
|
|
2,152
|
|
|||||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
1,084
|
|
|
1,084
|
|
|
1,443
|
|
|
1,444
|
|
|
1,421
|
|
|
1,467
|
|
|
1,468
|
|
|||||||
Total fixed charges
|
|
$
|
53,693
|
|
|
$
|
53,208
|
|
|
$
|
71,681
|
|
|
$
|
70,820
|
|
|
$
|
68,344
|
|
|
$
|
66,213
|
|
|
$
|
63,651
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income attributable to Hawaiian Electric
|
|
$
|
109,712
|
|
|
$
|
103,531
|
|
|
$
|
136,794
|
|
|
$
|
138,721
|
|
|
$
|
124,009
|
|
|
$
|
100,356
|
|
|
$
|
101,066
|
|
Fixed charges, as shown
|
|
53,693
|
|
|
53,208
|
|
|
71,681
|
|
|
70,820
|
|
|
68,344
|
|
|
66,213
|
|
|
63,651
|
|
|||||||
Income taxes
|
|
63,978
|
|
|
60,351
|
|
|
79,422
|
|
|
80,725
|
|
|
69,117
|
|
|
61,048
|
|
|
61,584
|
|
|||||||
Interest capitalized
|
|
(2,716
|
)
|
|
(2,548
|
)
|
|
(3,265
|
)
|
|
(3,954
|
)
|
|
(7,097
|
)
|
|
(4,355
|
)
|
|
(2,498
|
)
|
|||||||
Earnings available for fixed charges
|
|
$
|
224,667
|
|
|
$
|
214,542
|
|
|
$
|
284,632
|
|
|
$
|
286,312
|
|
|
$
|
254,373
|
|
|
$
|
223,262
|
|
|
$
|
223,803
|
|
Ratio of earnings to fixed charges
|
|
4.18
|
|
|
4.03
|
|
|
3.97
|
|
|
4.04
|
|
|
3.72
|
|
|
3.37
|
|
|
3.52
|
|
Date: November 4, 2016
|
|
|
/s/ Constance H. Lau
|
|
Constance H. Lau
|
|
President and Chief Executive Officer
|
Date: November 4, 2016
|
|
|
/s/ James A. Ajello
|
|
James A. Ajello
|
|
Executive Vice President and Chief Financial Officer
|
Date: November 4, 2016
|
|
|
/s/ Alan M. Oshima
|
|
Alan M. Oshima
|
|
President and Chief Executive Officer
|
Date: November 4, 2016
|
|
|
/s/ Tayne S. Y. Sekimura
|
|
Tayne S. Y. Sekimura
|
|
Senior Vice President and Chief Financial Officer
|
Date: November 4, 2016
|
|
/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: November 4, 2016
|
|
/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
|