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.
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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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Emerging growth company
o
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Emerging growth company
o
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Hawaiian Electric Industries, Inc.
o
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Hawaiian Electric Company, Inc.
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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Class of Common Stock
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Outstanding October 27, 2017
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Hawaiian Electric Industries, Inc. (Without Par Value)
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108,785,978 Shares
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Hawaiian Electric Company, Inc. ($6-2/3 Par Value)
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16,019,785 Shares (not publicly traded)
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Page No.
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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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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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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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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 wound up in 2017); The Old Oahu Tug Service, Inc. (formerly Hawaiian Tug & Barge Corp.); and Pacific Current, LLC and its subsidiary, Hamakua Holdings, LLC and its subsidiary, Hamakua Energy, LLC
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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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CBRE
|
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Community-based renewable energy
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DER
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Distributed energy resources
|
D&O
|
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Decision and order from the PUC
|
DG
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Distributed generation
|
Dodd-Frank Act
|
|
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
|
DSM
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Demand-side management
|
ECAC
|
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Energy cost adjustment clause
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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
|
ERP/EAM
|
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Enterprise Resource Planning/Enterprise Asset Management
|
EVE
|
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Economic value of equity
|
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
|
federal
|
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U.S. Government
|
FHLB
|
|
Federal Home Loan Bank
|
FHLMC
|
|
Federal Home Loan Mortgage Corporation
|
FNMA
|
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Federal National Mortgage Association
|
FRB
|
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Federal Reserve Board
|
GAAP
|
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Accounting principles generally accepted in the United States of America
|
Terms
|
|
Definitions
|
GNMA
|
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Government National Mortgage Association
|
Hawaii Electric Light
|
|
Hawaii Electric Light Company, Inc., an electric utility subsidiary of Hawaiian Electric Company, Inc.
|
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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HEP
|
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Hamakua Energy Partners, L.P., an affiliate of Arclight Capital Partners (a Boston based private equity firm focused on energy infrastructure investments) and successor in interest to Encogen Hawaii, L.P.
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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 wound up in 2017), The Old Oahu Tug Service, Inc. (formerly Hawaiian Tug & Barge Corp.) and Pacific Current, LLC
|
HEIRSP
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|
Hawaiian Electric Industries Retirement Savings Plan
|
HELOC
|
|
Home equity line of credit
|
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
|
Kalaeloa
|
|
Kalaeloa Partners, L.P.
|
KWH
|
|
Kilowatthour/s (as applicable)
|
LNG
|
|
Liquefied natural gas
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LTIP
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Long-term incentive plan
|
Maui Electric
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Maui Electric Company, Limited, an electric utility subsidiary of Hawaiian Electric Company, Inc.
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Merger
|
|
As provided in the Merger Agreement (see below), merger of NEE Acquisition Sub II, Inc. with and into HEI, with HEI surviving, and then merger of HEI with and into NEE Acquisition Sub I, LLC, with NEE Acquisition Sub I, LLC surviving as a wholly owned subsidiary of NextEra Energy, Inc.
|
Merger Agreement
|
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Agreement and Plan of Merger by and among HEI, NextEra Energy, Inc., NEE Acquisition Sub II, Inc. and NEE Acquisition Sub I, LLC, dated December 3, 2014 and terminated July 16, 2016
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MPIR
|
|
Major Project Interim Recovery
|
MW
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|
Megawatt/s (as applicable)
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NEE
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NextEra Energy, Inc.
|
NEM
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Net energy metering
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NII
|
|
Net interest income
|
NPBC
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Net periodic benefit costs
|
NPPC
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Net periodic pension costs
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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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Photovoltaic
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RAM
|
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Rate adjustment mechanism
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RBA
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Revenue balancing account
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RFP
|
|
Request for proposals
|
ROACE
|
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Return on average common equity
|
RORB
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Return on rate base
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RPS
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Renewable portfolio standards
|
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 previously planned distribution to HEI shareholders of all of the common stock of ASB Hawaii immediately prior to the Merger, which was terminated
|
TDR
|
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Troubled debt restructuring
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Trust III
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HECO Capital Trust III
|
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
|
•
|
international, national and local economic and political 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; the effects of changes that have or may occur in U.S. policy, such as with respect to immigration and trade; terrorist acts by ISIS or others; potential conflict or crisis with North Korea; and potential pandemics);
|
•
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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, monetary policy and policy and regulation changes advanced or proposed by President Trump and his administration;
|
•
|
weather and natural disasters (e.g., hurricanes, earthquakes, tsunamis, lightning strikes, lava flows and the potential effects of climate change, such as more severe storms and rising sea levels), including their impact on the Company's and Utilities' operations and the economy;
|
•
|
the timing and extent of changes in interest rates and the shape of the yield curve;
|
•
|
the ability of the Company and the Utilities to access the credit and capital markets (e.g., to obtain commercial paper and other short-term and long-term debt financing, including lines of credit, and, in the case of HEI, to issue common stock) under volatile and challenging market conditions, and the cost of such financings, if available;
|
•
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the risks inherent in changes in the value of the Company’s pension and other retirement plan assets and ASB’s securities available for sale;
|
•
|
changes in laws, regulations, market conditions and other factors that result in changes in assumptions used to calculate retirement benefits costs and funding requirements;
|
•
|
the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) and of the rules and regulations that the Dodd-Frank Act requires to be promulgated;
|
•
|
increasing competition in the banking industry (e.g., increased price competition for deposits, or an outflow of deposits to alternative investments, which may have an adverse impact on ASB’s cost of funds);
|
•
|
the 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/EAM) and smart grids, and a higher cost of capital;
|
•
|
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, 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 included in their updated Power Supply Improvement Plans (PSIPs), Demand Response Portfolio Plan, Distributed Generation Interconnection Plan, Grid Modernization Plans, and business model changes, which have been and are continuing to be developed and updated in response to the orders issued by the PUC in April 2014, its April 2014 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 subsequent orders of the PUC;
|
•
|
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 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)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electric utility
|
|
$
|
598,769
|
|
|
$
|
572,253
|
|
|
$
|
1,674,255
|
|
|
$
|
1,549,700
|
|
Bank
|
|
74,289
|
|
|
73,708
|
|
|
222,474
|
|
|
213,297
|
|
||||
Other
|
|
127
|
|
|
94
|
|
|
299
|
|
|
262
|
|
||||
Total revenues
|
|
673,185
|
|
|
646,055
|
|
|
1,897,028
|
|
|
1,763,259
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electric utility
|
|
511,693
|
|
|
482,441
|
|
|
1,483,194
|
|
|
1,333,876
|
|
||||
Bank
|
|
47,525
|
|
|
50,981
|
|
|
146,754
|
|
|
150,752
|
|
||||
Other
|
|
4,422
|
|
|
7,191
|
|
|
13,777
|
|
|
18,883
|
|
||||
Total expenses
|
|
563,640
|
|
|
540,613
|
|
|
1,643,725
|
|
|
1,503,511
|
|
||||
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electric utility
|
|
87,076
|
|
|
89,812
|
|
|
191,061
|
|
|
215,824
|
|
||||
Bank
|
|
26,764
|
|
|
22,727
|
|
|
75,720
|
|
|
62,545
|
|
||||
Other
|
|
(4,295
|
)
|
|
(7,097
|
)
|
|
(13,478
|
)
|
|
(18,621
|
)
|
||||
Total operating income
|
|
109,545
|
|
|
105,442
|
|
|
253,303
|
|
|
259,748
|
|
||||
Merger termination fee
|
|
—
|
|
|
90,000
|
|
|
—
|
|
|
90,000
|
|
||||
Interest expense, net—other than on deposit liabilities and other bank borrowings
|
|
(19,227
|
)
|
|
(19,365
|
)
|
|
(59,235
|
)
|
|
(56,792
|
)
|
||||
Allowance for borrowed funds used during construction
|
|
1,339
|
|
|
854
|
|
|
3,371
|
|
|
2,276
|
|
||||
Allowance for equity funds used during construction
|
|
3,482
|
|
|
2,274
|
|
|
8,908
|
|
|
6,010
|
|
||||
Income before income taxes
|
|
95,139
|
|
|
179,205
|
|
|
206,347
|
|
|
301,242
|
|
||||
Income taxes
|
|
34,595
|
|
|
51,592
|
|
|
72,003
|
|
|
96,203
|
|
||||
Net income
|
|
60,544
|
|
|
127,613
|
|
|
134,344
|
|
|
205,039
|
|
||||
Preferred stock dividends of subsidiaries
|
|
471
|
|
|
471
|
|
|
1,417
|
|
|
1,417
|
|
||||
Net income for common stock
|
|
$
|
60,073
|
|
|
$
|
127,142
|
|
|
$
|
132,927
|
|
|
$
|
203,622
|
|
Basic earnings per common share
|
|
$
|
0.55
|
|
|
$
|
1.17
|
|
|
$
|
1.22
|
|
|
$
|
1.89
|
|
Diluted earnings per common share
|
|
$
|
0.55
|
|
|
$
|
1.17
|
|
|
$
|
1.22
|
|
|
$
|
1.88
|
|
Dividends declared per common share
|
|
$
|
0.31
|
|
|
$
|
0.31
|
|
|
$
|
0.93
|
|
|
$
|
0.93
|
|
Weighted-average number of common shares outstanding
|
|
108,786
|
|
|
108,268
|
|
|
108,737
|
|
|
107,951
|
|
||||
Net effect of potentially dilutive shares
|
|
79
|
|
|
204
|
|
|
172
|
|
|
220
|
|
||||
Weighted-average shares assuming dilution
|
|
108,865
|
|
|
108,472
|
|
|
108,909
|
|
|
108,171
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income for common stock
|
|
$
|
60,073
|
|
|
$
|
127,142
|
|
|
$
|
132,927
|
|
|
$
|
203,622
|
|
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 $(137), $1,417, $(1,619) and $(5,413), respectively
|
|
208
|
|
|
(2,147
|
)
|
|
2,452
|
|
|
8,197
|
|
||||
Reclassification adjustment for net realized gains included in net income, net of taxes of nil, nil, nil and $238, respectively
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(360
|
)
|
||||
Derivatives qualifying as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Effective portion of foreign currency hedge net unrealized gains arising during the period, net of taxes of nil, $205, nil and $368, respectively
|
|
—
|
|
|
321
|
|
|
—
|
|
|
578
|
|
||||
Reclassification adjustment to net income, net of (taxes) benefits of nil, $(110), $289 and $(75), respectively
|
|
—
|
|
|
(173
|
)
|
|
454
|
|
|
(119
|
)
|
||||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $2,516, $2,324, $7,526 and $6,943, respectively
|
|
3,942
|
|
|
3,641
|
|
|
11,793
|
|
|
10,877
|
|
||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $2,290, $2,109, $6,872 and $6,327, respectively
|
|
(3,596
|
)
|
|
(3,311
|
)
|
|
(10,790
|
)
|
|
(9,934
|
)
|
||||
Other comprehensive income (loss), net of taxes
|
|
554
|
|
|
(1,669
|
)
|
|
3,909
|
|
|
9,239
|
|
||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
60,627
|
|
|
$
|
125,473
|
|
|
$
|
136,836
|
|
|
$
|
212,861
|
|
(dollars in thousands)
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
202,173
|
|
|
$
|
278,452
|
|
Accounts receivable and unbilled revenues, net
|
|
264,426
|
|
|
237,950
|
|
||
Available-for-sale investment securities, at fair value
|
|
1,320,110
|
|
|
1,105,182
|
|
||
Stock in Federal Home Loan Bank, at cost
|
|
9,706
|
|
|
11,218
|
|
||
Loans receivable held for investment, net
|
|
4,623,234
|
|
|
4,683,160
|
|
||
Loans held for sale, at lower of cost or fair value
|
|
15,728
|
|
|
18,817
|
|
||
Property, plant and equipment, net of accumulated depreciation of $2,537,320 and $2,444,348 at September 30, 2017 and December 31, 2016, respectively
|
|
4,813,875
|
|
|
4,603,465
|
|
||
Regulatory assets
|
|
936,964
|
|
|
957,451
|
|
||
Other
|
|
474,444
|
|
|
447,621
|
|
||
Goodwill
|
|
82,190
|
|
|
82,190
|
|
||
Total assets
|
|
$
|
12,742,850
|
|
|
$
|
12,425,506
|
|
Liabilities and shareholders’ equity
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
160,897
|
|
|
$
|
143,279
|
|
Interest and dividends payable
|
|
26,484
|
|
|
25,225
|
|
||
Deposit liabilities
|
|
5,752,326
|
|
|
5,548,929
|
|
||
Short-term borrowings—other than bank
|
|
24,498
|
|
|
—
|
|
||
Other bank borrowings
|
|
153,552
|
|
|
192,618
|
|
||
Long-term debt, net—other than bank
|
|
1,618,446
|
|
|
1,619,019
|
|
||
Deferred income taxes
|
|
756,814
|
|
|
728,806
|
|
||
Regulatory liabilities
|
|
466,216
|
|
|
410,693
|
|
||
Contributions in aid of construction
|
|
565,118
|
|
|
543,525
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
620,788
|
|
|
638,854
|
|
||
Other
|
|
460,396
|
|
|
473,512
|
|
||
Total liabilities
|
|
10,605,535
|
|
|
10,324,460
|
|
||
Preferred stock of subsidiaries - not subject to mandatory redemption
|
|
34,293
|
|
|
34,293
|
|
||
Commitments and contingencies (Notes 3 and 4)
|
|
|
|
|
|
|
||
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: 108,785,978 shares and 108,583,413 shares at September 30, 2017 and December 31, 2016, respectively
|
|
1,661,492
|
|
|
1,660,910
|
|
||
Retained earnings
|
|
470,750
|
|
|
438,972
|
|
||
Accumulated other comprehensive loss, net of tax benefits
|
|
(29,220
|
)
|
|
(33,129
|
)
|
||
Total shareholders’ equity
|
|
2,103,022
|
|
|
2,066,753
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
12,742,850
|
|
|
$
|
12,425,506
|
|
|
|
Common stock
|
|
Retained
|
|
Accumulated
other
comprehensive
|
|
|
|||||||||||
(in thousands)
|
|
Shares
|
|
Amount
|
|
Earnings
|
|
income (loss)
|
|
Total
|
|||||||||
Balance, December 31, 2016
|
|
108,583
|
|
|
$
|
1,660,910
|
|
|
$
|
438,972
|
|
|
$
|
(33,129
|
)
|
|
$
|
2,066,753
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
132,927
|
|
|
—
|
|
|
132,927
|
|
||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,909
|
|
|
3,909
|
|
||||
Issuance of common stock, net of expenses
|
|
203
|
|
|
582
|
|
|
—
|
|
|
—
|
|
|
582
|
|
||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
(101,149
|
)
|
|
—
|
|
|
(101,149
|
)
|
||||
Balance, September 30, 2017
|
|
108,786
|
|
|
$
|
1,661,492
|
|
|
$
|
470,750
|
|
|
$
|
(29,220
|
)
|
|
$
|
2,103,022
|
|
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 of expenses
|
|
1,043
|
|
|
28,285
|
|
|
—
|
|
|
—
|
|
|
28,285
|
|
||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
(100,398
|
)
|
|
—
|
|
|
(100,398
|
)
|
||||
Balance, September 30, 2016
|
|
108,503
|
|
|
$
|
1,657,421
|
|
|
$
|
427,990
|
|
|
$
|
(17,023
|
)
|
|
$
|
2,068,388
|
|
|
|
Nine months ended September 30
|
||||||
(in thousands)
|
|
2017
|
|
2016
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
134,344
|
|
|
$
|
205,039
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||
Depreciation of property, plant and equipment
|
|
150,123
|
|
|
145,684
|
|
||
Other amortization
|
|
15,362
|
|
|
7,368
|
|
||
Provision for loan losses
|
|
7,231
|
|
|
15,266
|
|
||
Loans receivable originated and purchased, held for sale
|
|
(105,816
|
)
|
|
(172,657
|
)
|
||
Proceeds from sale of loans receivable, held for sale
|
|
119,731
|
|
|
168,490
|
|
||
Deferred income taxes
|
|
21,397
|
|
|
30,667
|
|
||
Share-based compensation expense
|
|
4,383
|
|
|
3,581
|
|
||
Allowance for equity funds used during construction
|
|
(8,908
|
)
|
|
(6,010
|
)
|
||
Other
|
|
(1,350
|
)
|
|
3,234
|
|
||
Changes in assets and liabilities
|
|
|
|
|
|
|
||
Increase in accounts receivable and unbilled revenues, net
|
|
(26,250
|
)
|
|
(12,104
|
)
|
||
Decrease in fuel oil stock
|
|
6,177
|
|
|
6,736
|
|
||
Decrease (increase) in regulatory assets
|
|
3,922
|
|
|
(2,251
|
)
|
||
Increase (decrease) in accounts, interest and dividends payable
|
|
(10,390
|
)
|
|
3,399
|
|
||
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes
|
|
2,828
|
|
|
52,558
|
|
||
Increase in defined benefit pension and other postretirement benefit plans liability
|
|
670
|
|
|
150
|
|
||
Change in other assets and liabilities
|
|
(22,311
|
)
|
|
(39,850
|
)
|
||
Net cash provided by operating activities
|
|
291,143
|
|
|
409,300
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
||
Available-for-sale investment securities purchased
|
|
(369,467
|
)
|
|
(354,165
|
)
|
||
Principal repayments on available-for-sale investment securities
|
|
155,026
|
|
|
172,829
|
|
||
Proceeds from sale of available-for-sale investment securities
|
|
—
|
|
|
16,423
|
|
||
Purchase of stock from Federal Home Loan Bank
|
|
(2,868
|
)
|
|
(2,773
|
)
|
||
Redemption of stock from Federal Home Loan Bank
|
|
4,380
|
|
|
2,233
|
|
||
Net decrease (increase) in loans held for investment
|
|
13,188
|
|
|
(175,303
|
)
|
||
Proceeds from sale of commercial loans
|
|
31,427
|
|
|
37,946
|
|
||
Proceeds from sale of real estate acquired in settlement of loans
|
|
411
|
|
|
829
|
|
||
Proceeds from sale of real estate held-for-sale
|
|
—
|
|
|
1,764
|
|
||
Capital expenditures
|
|
(314,404
|
)
|
|
(259,207
|
)
|
||
Contributions in aid of construction
|
|
40,603
|
|
|
23,568
|
|
||
Other
|
|
1,345
|
|
|
112
|
|
||
Net cash used in investing activities
|
|
(440,359
|
)
|
|
(535,744
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
||
Net increase in deposit liabilities
|
|
203,397
|
|
|
355,467
|
|
||
Net increase (decrease) in short-term borrowings with original maturities of three months or less
|
|
24,498
|
|
|
(103,063
|
)
|
||
Net increase (decrease) in retail repurchase agreements
|
|
24,469
|
|
|
(21,121
|
)
|
||
Proceeds from other bank borrowings
|
|
59,500
|
|
|
55,835
|
|
||
Repayments of other bank borrowings
|
|
(123,034
|
)
|
|
(97,902
|
)
|
||
Proceeds from issuance of long-term debt
|
|
265,000
|
|
|
75,000
|
|
||
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds
|
|
(265,000
|
)
|
|
(75,000
|
)
|
||
Withheld shares for employee taxes on vested share-based compensation
|
|
(3,796
|
)
|
|
(2,398
|
)
|
||
Net proceeds from issuance of common stock
|
|
—
|
|
|
10,901
|
|
||
Common stock dividends
|
|
(101,149
|
)
|
|
(83,620
|
)
|
||
Preferred stock dividends of subsidiaries
|
|
(1,417
|
)
|
|
(1,417
|
)
|
||
Other
|
|
(9,531
|
)
|
|
(2,361
|
)
|
||
Net cash provided by financing activities
|
|
72,937
|
|
|
110,321
|
|
||
Net decrease in cash and cash equivalents
|
|
(76,279
|
)
|
|
(16,123
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
278,452
|
|
|
300,478
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
202,173
|
|
|
$
|
284,355
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues
|
|
$
|
598,769
|
|
|
$
|
572,253
|
|
|
$
|
1,674,255
|
|
|
$
|
1,549,700
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuel oil
|
|
146,258
|
|
|
128,624
|
|
|
431,787
|
|
|
334,263
|
|
||||
Purchased power
|
|
160,347
|
|
|
157,750
|
|
|
440,538
|
|
|
412,667
|
|
||||
Other operation and maintenance
|
|
100,102
|
|
|
94,789
|
|
|
306,716
|
|
|
298,260
|
|
||||
Depreciation
|
|
48,206
|
|
|
46,759
|
|
|
144,578
|
|
|
140,300
|
|
||||
Taxes, other than income taxes
|
|
56,780
|
|
|
54,519
|
|
|
159,575
|
|
|
148,386
|
|
||||
Total expenses
|
|
511,693
|
|
|
482,441
|
|
|
1,483,194
|
|
|
1,333,876
|
|
||||
Operating income
|
|
87,076
|
|
|
89,812
|
|
|
191,061
|
|
|
215,824
|
|
||||
Allowance for equity funds used during construction
|
|
3,482
|
|
|
2,274
|
|
|
8,908
|
|
|
6,010
|
|
||||
Interest expense and other charges, net
|
|
(16,907
|
)
|
|
(17,323
|
)
|
|
(52,625
|
)
|
|
(49,734
|
)
|
||||
Allowance for borrowed funds used during construction
|
|
1,339
|
|
|
854
|
|
|
3,371
|
|
|
2,276
|
|
||||
Income before income taxes
|
|
74,990
|
|
|
75,617
|
|
|
150,715
|
|
|
174,376
|
|
||||
Income taxes
|
|
27,005
|
|
|
28,145
|
|
|
54,623
|
|
|
64,682
|
|
||||
Net income
|
|
47,985
|
|
|
47,472
|
|
|
96,092
|
|
|
109,694
|
|
||||
Preferred stock dividends of subsidiaries
|
|
228
|
|
|
228
|
|
|
686
|
|
|
686
|
|
||||
Net income attributable to Hawaiian Electric
|
|
47,757
|
|
|
47,244
|
|
|
95,406
|
|
|
109,008
|
|
||||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
270
|
|
|
810
|
|
|
810
|
|
||||
Net income for common stock
|
|
$
|
47,487
|
|
|
$
|
46,974
|
|
|
$
|
94,596
|
|
|
$
|
108,198
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income for common stock
|
|
$
|
47,487
|
|
|
$
|
46,974
|
|
|
$
|
94,596
|
|
|
$
|
108,198
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives qualifying as cash flow hedges:
|
|
|
|
|
|
|
|
|
||||||||
Effective portion of foreign currency hedge net unrealized gains arising during the period, net of taxes of nil, $205, nil and $368, respectively
|
|
—
|
|
|
321
|
|
|
—
|
|
|
578
|
|
||||
Reclassification adjustment to net income, net of (taxes) benefits of nil, $(110), $289 and $(110), respectively
|
|
—
|
|
|
(173
|
)
|
|
454
|
|
|
(173
|
)
|
||||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $2,306, $2,110, $6,916 and $6,331, respectively
|
|
3,618
|
|
|
3,314
|
|
|
10,857
|
|
|
9,941
|
|
||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $2,290, $2,109, $6,872 and $6,327, respectively
|
|
(3,596
|
)
|
|
(3,311
|
)
|
|
(10,790
|
)
|
|
(9,934
|
)
|
||||
Other comprehensive income, net of taxes
|
|
22
|
|
|
151
|
|
|
521
|
|
|
412
|
|
||||
Comprehensive income attributable to Hawaiian Electric Company, Inc.
|
|
$
|
47,509
|
|
|
$
|
47,125
|
|
|
$
|
95,117
|
|
|
$
|
108,610
|
|
(dollars in thousands, except par value)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
||
Assets
|
|
|
|
|
|
|
||
Property, plant and equipment
|
|
|
|
|
||||
Utility property, plant and equipment
|
|
|
|
|
|
|
||
Land
|
|
$
|
53,913
|
|
|
$
|
53,153
|
|
Plant and equipment
|
|
6,778,254
|
|
|
6,605,732
|
|
||
Less accumulated depreciation
|
|
(2,460,429
|
)
|
|
(2,369,282
|
)
|
||
Construction in progress
|
|
307,492
|
|
|
211,742
|
|
||
Utility property, plant and equipment, net
|
|
4,679,230
|
|
|
4,501,345
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation of $1,233 as of September 30, 2017 and $1,232 as of December 31, 2016
|
|
7,409
|
|
|
7,407
|
|
||
Total property, plant and equipment, net
|
|
4,686,639
|
|
|
4,508,752
|
|
||
Current assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
9,987
|
|
|
74,286
|
|
||
Customer accounts receivable, net
|
|
133,135
|
|
|
123,688
|
|
||
Accrued unbilled revenues, net
|
|
109,707
|
|
|
91,693
|
|
||
Other accounts receivable, net
|
|
4,097
|
|
|
5,233
|
|
||
Fuel oil stock, at average cost
|
|
60,253
|
|
|
66,430
|
|
||
Materials and supplies, at average cost
|
|
55,959
|
|
|
53,679
|
|
||
Prepayments and other
|
|
29,871
|
|
|
23,100
|
|
||
Regulatory assets
|
|
72,773
|
|
|
66,032
|
|
||
Total current assets
|
|
475,782
|
|
|
504,141
|
|
||
Other long-term assets
|
|
|
|
|
|
|
||
Regulatory assets
|
|
864,191
|
|
|
891,419
|
|
||
Unamortized debt expense
|
|
661
|
|
|
208
|
|
||
Other
|
|
80,228
|
|
|
70,908
|
|
||
Total other long-term assets
|
|
945,080
|
|
|
962,535
|
|
||
Total assets
|
|
$
|
6,107,501
|
|
|
$
|
5,975,428
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
||
Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 16,019,785 shares at September 30, 2017 and December 31, 2016)
|
|
$
|
106,818
|
|
|
$
|
106,818
|
|
Premium on capital stock
|
|
601,487
|
|
|
601,491
|
|
||
Retained earnings
|
|
1,120,571
|
|
|
1,091,800
|
|
||
Accumulated other comprehensive income (loss), net of taxes
|
|
199
|
|
|
(322
|
)
|
||
Common stock equity
|
|
1,829,075
|
|
|
1,799,787
|
|
||
Cumulative preferred stock — not subject to mandatory redemption
|
|
34,293
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
1,318,623
|
|
|
1,319,260
|
|
||
Total capitalization
|
|
3,181,991
|
|
|
3,153,340
|
|
||
Commitments and contingencies (Note 3)
|
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
|
||
Short-term borrowings from non-affiliates
|
|
6,000
|
|
|
—
|
|
||
Accounts payable
|
|
124,240
|
|
|
117,814
|
|
||
Interest and preferred dividends payable
|
|
25,261
|
|
|
22,838
|
|
||
Taxes accrued
|
|
183,365
|
|
|
172,730
|
|
||
Regulatory liabilities
|
|
3,399
|
|
|
3,762
|
|
||
Other
|
|
59,611
|
|
|
55,221
|
|
||
Total current liabilities
|
|
401,876
|
|
|
372,365
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
||
Deferred income taxes
|
|
767,611
|
|
|
733,659
|
|
||
Regulatory liabilities
|
|
462,817
|
|
|
406,931
|
|
||
Unamortized tax credits
|
|
88,827
|
|
|
88,961
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
581,713
|
|
|
599,726
|
|
||
Other
|
|
57,548
|
|
|
76,921
|
|
||
Total deferred credits and other liabilities
|
|
1,958,516
|
|
|
1,906,198
|
|
||
Contributions in aid of construction
|
|
565,118
|
|
|
543,525
|
|
||
Total capitalization and liabilities
|
|
$
|
6,107,501
|
|
|
$
|
5,975,428
|
|
|
|
Common stock
|
|
Premium
on
capital
|
|
Retained
|
|
Accumulated
other
comprehensive
|
|
|
|||||||||||||
(in thousands)
|
|
Shares
|
|
Amount
|
|
stock
|
|
earnings
|
|
income (loss)
|
|
Total
|
|||||||||||
Balance, December 31, 2016
|
|
16,020
|
|
|
$
|
106,818
|
|
|
$
|
601,491
|
|
|
$
|
1,091,800
|
|
|
$
|
(322
|
)
|
|
$
|
1,799,787
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
94,596
|
|
|
—
|
|
|
94,596
|
|
|||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
521
|
|
|
521
|
|
|||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(65,825
|
)
|
|
—
|
|
|
(65,825
|
)
|
|||||
Common stock issuance expenses
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||
Balance, September 30, 2017
|
|
16,020
|
|
|
$
|
106,818
|
|
|
$
|
601,487
|
|
|
$
|
1,120,571
|
|
|
$
|
199
|
|
|
$
|
1,829,075
|
|
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
|
|
|
|
Nine months ended September 30
|
||||||
(in thousands)
|
|
2017
|
|
2016
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
96,092
|
|
|
$
|
109,694
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||
Depreciation of property, plant and equipment
|
|
144,578
|
|
|
140,300
|
|
||
Other amortization
|
|
6,118
|
|
|
5,380
|
|
||
Deferred income taxes
|
|
29,537
|
|
|
55,648
|
|
||
Allowance for equity funds used during construction
|
|
(8,908
|
)
|
|
(6,010
|
)
|
||
Other
|
|
526
|
|
|
3,234
|
|
||
Changes in assets and liabilities
|
|
|
|
|
|
|
||
Increase in accounts receivable
|
|
(8,087
|
)
|
|
(655
|
)
|
||
Increase in accrued unbilled revenues
|
|
(18,014
|
)
|
|
(10,658
|
)
|
||
Decrease in fuel oil stock
|
|
6,177
|
|
|
6,736
|
|
||
Increase in materials and supplies
|
|
(2,280
|
)
|
|
(2,927
|
)
|
||
Decrease (increase) in regulatory assets
|
|
3,922
|
|
|
(2,251
|
)
|
||
Decrease in accounts payable
|
|
(22,841
|
)
|
|
(676
|
)
|
||
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
|
5,291
|
|
|
(9,595
|
)
|
||
Increase in defined benefit pension and other postretirement benefit plans liability
|
|
453
|
|
|
360
|
|
||
Change in other assets and liabilities
|
|
(2,662
|
)
|
|
(13,309
|
)
|
||
Net cash provided by operating activities
|
|
229,902
|
|
|
275,271
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(278,004
|
)
|
|
(250,704
|
)
|
||
Contributions in aid of construction
|
|
40,603
|
|
|
23,568
|
|
||
Other
|
|
8,114
|
|
|
1,100
|
|
||
Net cash used in investing activities
|
|
(229,287
|
)
|
|
(226,036
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
||
Common stock dividends
|
|
(65,825
|
)
|
|
(70,199
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(1,496
|
)
|
|
(1,496
|
)
|
||
Proceeds from issuance of special purpose revenue bonds
|
|
265,000
|
|
|
—
|
|
||
Funds transferred for redemption of special purpose revenue bonds
|
|
(265,000
|
)
|
|
—
|
|
||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
6,000
|
|
|
21,000
|
|
||
Other
|
|
(3,593
|
)
|
|
(12
|
)
|
||
Net cash used in financing activities
|
|
(64,914
|
)
|
|
(50,707
|
)
|
||
Net decrease in cash and cash equivalents
|
|
(64,299
|
)
|
|
(1,472
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
74,286
|
|
|
24,449
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
9,987
|
|
|
$
|
22,977
|
|
•
|
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.
|
(in thousands)
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
||||||||
Three months ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
598,756
|
|
|
$
|
74,289
|
|
|
$
|
140
|
|
|
$
|
673,185
|
|
Intersegment revenues (eliminations)
|
|
13
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
||||
Revenues
|
|
$
|
598,769
|
|
|
$
|
74,289
|
|
|
$
|
127
|
|
|
$
|
673,185
|
|
Income (loss) before income taxes
|
|
$
|
74,990
|
|
|
$
|
26,764
|
|
|
$
|
(6,615
|
)
|
|
$
|
95,139
|
|
Income taxes (benefit)
|
|
27,005
|
|
|
9,172
|
|
|
(1,582
|
)
|
|
34,595
|
|
||||
Net income (loss)
|
|
47,985
|
|
|
17,592
|
|
|
(5,033
|
)
|
|
60,544
|
|
||||
Preferred stock dividends of subsidiaries
|
|
498
|
|
|
—
|
|
|
(27
|
)
|
|
471
|
|
||||
Net income (loss) for common stock
|
|
$
|
47,487
|
|
|
$
|
17,592
|
|
|
$
|
(5,006
|
)
|
|
$
|
60,073
|
|
Nine months ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
1,674,158
|
|
|
$
|
222,474
|
|
|
$
|
396
|
|
|
$
|
1,897,028
|
|
Intersegment revenues (eliminations)
|
|
97
|
|
|
—
|
|
|
(97
|
)
|
|
—
|
|
||||
Revenues
|
|
$
|
1,674,255
|
|
|
$
|
222,474
|
|
|
$
|
299
|
|
|
$
|
1,897,028
|
|
Income (loss) before income taxes
|
|
$
|
150,715
|
|
|
$
|
75,720
|
|
|
$
|
(20,088
|
)
|
|
$
|
206,347
|
|
Income taxes (benefit)
|
|
54,623
|
|
|
25,582
|
|
|
(8,202
|
)
|
|
72,003
|
|
||||
Net income (loss)
|
|
96,092
|
|
|
50,138
|
|
|
(11,886
|
)
|
|
134,344
|
|
||||
Preferred stock dividends of subsidiaries
|
|
1,496
|
|
|
—
|
|
|
(79
|
)
|
|
1,417
|
|
||||
Net income (loss) for common stock
|
|
$
|
94,596
|
|
|
$
|
50,138
|
|
|
$
|
(11,807
|
)
|
|
$
|
132,927
|
|
Total assets (at September 30, 2017)
|
|
$
|
6,107,501
|
|
|
$
|
6,618,907
|
|
|
$
|
16,442
|
|
|
$
|
12,742,850
|
|
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 before income taxes
|
|
$
|
75,617
|
|
|
$
|
22,727
|
|
|
$
|
80,861
|
|
|
$
|
179,205
|
|
Income taxes
|
|
28,145
|
|
|
7,623
|
|
|
15,824
|
|
|
51,592
|
|
||||
Net income
|
|
47,472
|
|
|
15,104
|
|
|
65,037
|
|
|
127,613
|
|
||||
Preferred stock dividends of subsidiaries
|
|
498
|
|
|
—
|
|
|
(27
|
)
|
|
471
|
|
||||
Net income 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 before income taxes
|
|
$
|
174,376
|
|
|
$
|
62,545
|
|
|
$
|
64,321
|
|
|
$
|
301,242
|
|
Income taxes
|
|
64,682
|
|
|
21,483
|
|
|
10,038
|
|
|
96,203
|
|
||||
Net income
|
|
109,694
|
|
|
41,062
|
|
|
54,283
|
|
|
205,039
|
|
||||
Preferred stock dividends of subsidiaries
|
|
1,496
|
|
|
—
|
|
|
(79
|
)
|
|
1,417
|
|
||||
Net income for common stock
|
|
$
|
108,198
|
|
|
$
|
41,062
|
|
|
$
|
54,362
|
|
|
$
|
203,622
|
|
Total assets (at December 31, 2016)
|
|
$
|
5,975,428
|
|
|
$
|
6,421,357
|
|
|
$
|
28,721
|
|
|
$
|
12,425,506
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Kalaeloa
|
|
$
|
48
|
|
|
$
|
44
|
|
|
$
|
136
|
|
|
$
|
109
|
|
AES Hawaii
|
|
39
|
|
|
38
|
|
|
103
|
|
|
112
|
|
||||
HPOWER
|
|
18
|
|
|
19
|
|
|
51
|
|
|
52
|
|
||||
Puna Geothermal Venture
|
|
10
|
|
|
7
|
|
|
28
|
|
|
19
|
|
||||
HEP
|
|
8
|
|
|
8
|
|
|
25
|
|
|
23
|
|
||||
Other IPPs
1
|
|
38
|
|
|
42
|
|
|
98
|
|
|
98
|
|
||||
Total IPPs
|
|
$
|
161
|
|
|
$
|
158
|
|
|
$
|
441
|
|
|
$
|
413
|
|
1
|
Includes wind power, solar power, feed-in tariff projects and other PPAs.
|
•
|
Hawaiian Electric's RAM revenues were limited to the RAM Cap in 2015, 2016 and 2017.
|
•
|
Maui Electric's RAM revenues were limited to the RAM Cap in 2015 and 2016; however, the 2017 RAM revenues were below the RAM Cap.
|
•
|
Hawaii Electric Light’s RAM revenues were below the RAM Cap in 2015, 2016 and 2017.
|
•
|
Service Reliability Performance measured by System Average Interruption Duration and Frequency Indexes (penalties only). Target performance is based on each utility’s historical
10
-year average performance with a deadband of one
|
•
|
Call Center Performance measured by the percentage of calls answered within 30 seconds. Target performance is based on the annual average performance for each utility for the most recent 8 quarters with a deadband of
3%
above and below the target. The maximum penalty or incentive is 8 basis points applied to the common equity share of each respective utility’s rate base (or approximately
$1.2 million
penalty or incentive in total for the three utilities).
|
($ in millions)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
||||||
2017 Annual incremental RAM adjusted revenues
|
|
$
|
12.7
|
|
|
$
|
3.2
|
|
|
$
|
1.6
|
|
Annual change in accrued earnings sharing credits
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Annual change in accrued RBA balance as of December 31, 2016 (and associated revenue taxes) (refunded)
|
|
$
|
(2.4
|
)
|
|
$
|
(2.5
|
)
|
|
$
|
(0.2
|
)
|
Net annual incremental amount to be collected under the tariffs
|
|
$
|
10.3
|
|
|
$
|
0.7
|
|
|
$
|
1.4
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Revenues
|
|
$
|
429,267
|
|
|
84,334
|
|
|
85,198
|
|
|
—
|
|
|
(30
|
)
|
|
$
|
598,769
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
103,959
|
|
|
15,754
|
|
|
26,545
|
|
|
—
|
|
|
—
|
|
|
146,258
|
|
||
Purchased power
|
|
123,893
|
|
|
21,332
|
|
|
15,122
|
|
|
—
|
|
|
—
|
|
|
160,347
|
|
||
Other operation and maintenance
|
|
66,221
|
|
|
16,593
|
|
|
17,288
|
|
|
—
|
|
|
—
|
|
|
100,102
|
|
||
Depreciation
|
|
32,722
|
|
|
9,685
|
|
|
5,799
|
|
|
—
|
|
|
—
|
|
|
48,206
|
|
||
Taxes, other than income taxes
|
|
40,824
|
|
|
7,928
|
|
|
8,028
|
|
|
—
|
|
|
—
|
|
|
56,780
|
|
||
Total expenses
|
|
367,619
|
|
|
71,292
|
|
|
72,782
|
|
|
—
|
|
|
—
|
|
|
511,693
|
|
||
Operating income
|
|
61,648
|
|
|
13,042
|
|
|
12,416
|
|
|
—
|
|
|
(30
|
)
|
|
87,076
|
|
||
Allowance for equity funds used during construction
|
|
3,108
|
|
|
167
|
|
|
207
|
|
|
—
|
|
|
—
|
|
|
3,482
|
|
||
Equity in earnings of subsidiaries
|
|
12,767
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,767
|
)
|
|
—
|
|
||
Interest expense and other charges, net
|
|
(11,786
|
)
|
|
(2,899
|
)
|
|
(2,252
|
)
|
|
—
|
|
|
30
|
|
|
(16,907
|
)
|
||
Allowance for borrowed funds used during construction
|
|
1,173
|
|
|
72
|
|
|
94
|
|
|
—
|
|
|
—
|
|
|
1,339
|
|
||
Income before income taxes
|
|
66,910
|
|
|
10,382
|
|
|
10,465
|
|
|
—
|
|
|
(12,767
|
)
|
|
74,990
|
|
||
Income taxes
|
|
19,153
|
|
|
3,815
|
|
|
4,037
|
|
|
—
|
|
|
—
|
|
|
27,005
|
|
||
Net income
|
|
47,757
|
|
|
6,567
|
|
|
6,428
|
|
|
—
|
|
|
(12,767
|
)
|
|
47,985
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
133
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
228
|
|
||
Net income attributable to Hawaiian Electric
|
|
47,757
|
|
|
6,434
|
|
|
6,333
|
|
|
—
|
|
|
(12,767
|
)
|
|
47,757
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
||
Net income for common stock
|
|
$
|
47,487
|
|
|
6,434
|
|
|
6,333
|
|
|
—
|
|
|
(12,767
|
)
|
|
$
|
47,487
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income for common stock
|
|
$
|
47,487
|
|
|
6,434
|
|
|
6,333
|
|
|
—
|
|
|
(12,767
|
)
|
|
$
|
47,487
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
|
|
3,618
|
|
|
476
|
|
|
404
|
|
|
—
|
|
|
(880
|
)
|
|
3,618
|
|
||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(3,596
|
)
|
|
(476
|
)
|
|
(404
|
)
|
|
—
|
|
|
880
|
|
|
(3,596
|
)
|
||
Other comprehensive income, net of taxes
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
47,509
|
|
|
6,434
|
|
|
6,333
|
|
|
—
|
|
|
(12,767
|
)
|
|
$
|
47,509
|
|
(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
|
|
||
Reclassification adjustment to net income, net of taxes
|
|
(173
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(173
|
)
|
||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
|
|
3,314
|
|
|
429
|
|
|
387
|
|
|
—
|
|
|
(816
|
)
|
|
3,314
|
|
||
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
|
|
$
|
1,186,524
|
|
|
245,026
|
|
|
242,756
|
|
|
—
|
|
|
(51
|
)
|
|
$
|
1,674,255
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
301,774
|
|
|
47,486
|
|
|
82,527
|
|
|
—
|
|
|
—
|
|
|
431,787
|
|
||
Purchased power
|
|
340,498
|
|
|
63,403
|
|
|
36,637
|
|
|
—
|
|
|
—
|
|
|
440,538
|
|
||
Other operation and maintenance
|
|
204,460
|
|
|
49,667
|
|
|
52,589
|
|
|
—
|
|
|
—
|
|
|
306,716
|
|
||
Depreciation
|
|
98,167
|
|
|
29,056
|
|
|
17,355
|
|
|
—
|
|
|
—
|
|
|
144,578
|
|
||
Taxes, other than income taxes
|
|
113,483
|
|
|
23,080
|
|
|
23,012
|
|
|
—
|
|
|
—
|
|
|
159,575
|
|
||
Total expenses
|
|
1,058,382
|
|
|
212,692
|
|
|
212,120
|
|
|
—
|
|
|
—
|
|
|
1,483,194
|
|
||
Operating income
|
|
128,142
|
|
|
32,334
|
|
|
30,636
|
|
|
—
|
|
|
(51
|
)
|
|
191,061
|
|
||
Allowance for equity funds used during construction
|
|
7,823
|
|
|
416
|
|
|
669
|
|
|
—
|
|
|
—
|
|
|
8,908
|
|
||
Equity in earnings of subsidiaries
|
|
29,306
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,306
|
)
|
|
—
|
|
||
Interest expense and other charges, net
|
|
(36,405
|
)
|
|
(8,899
|
)
|
|
(7,372
|
)
|
|
—
|
|
|
51
|
|
|
(52,625
|
)
|
||
Allowance for borrowed funds used during construction
|
|
2,910
|
|
|
172
|
|
|
289
|
|
|
—
|
|
|
—
|
|
|
3,371
|
|
||
Income before income taxes
|
|
131,776
|
|
|
24,023
|
|
|
24,222
|
|
|
—
|
|
|
(29,306
|
)
|
|
150,715
|
|
||
Income taxes
|
|
36,370
|
|
|
8,973
|
|
|
9,280
|
|
|
—
|
|
|
—
|
|
|
54,623
|
|
||
Net income
|
|
95,406
|
|
|
15,050
|
|
|
14,942
|
|
|
—
|
|
|
(29,306
|
)
|
|
96,092
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
400
|
|
|
286
|
|
|
—
|
|
|
—
|
|
|
686
|
|
||
Net income attributable to Hawaiian Electric
|
|
95,406
|
|
|
14,650
|
|
|
14,656
|
|
|
—
|
|
|
(29,306
|
)
|
|
95,406
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
810
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
810
|
|
||
Net income for common stock
|
|
$
|
94,596
|
|
|
14,650
|
|
|
14,656
|
|
|
—
|
|
|
(29,306
|
)
|
|
$
|
94,596
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income for common stock
|
|
$
|
94,596
|
|
|
14,650
|
|
|
14,656
|
|
|
—
|
|
|
(29,306
|
)
|
|
$
|
94,596
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Derivatives qualifying as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Reclassification adjustment to net income, net of tax benefits
|
|
454
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
454
|
|
||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
|
|
10,857
|
|
|
1,428
|
|
|
1,214
|
|
|
—
|
|
|
(2,642
|
)
|
|
10,857
|
|
||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(10,790
|
)
|
|
(1,427
|
)
|
|
(1,214
|
)
|
|
—
|
|
|
2,641
|
|
|
(10,790
|
)
|
||
Other comprehensive income, net of taxes
|
|
521
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
521
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
95,117
|
|
|
14,651
|
|
|
14,656
|
|
|
—
|
|
|
(29,307
|
)
|
|
$
|
95,117
|
|
(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 qualifying as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Effective portion of foreign currency hedge net unrealized gain, net of taxes
|
|
578
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
578
|
|
||
Reclassification adjustment to net income, net of taxes
|
|
(173
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(173
|
)
|
||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
|
|
9,941
|
|
|
1,288
|
|
|
1,162
|
|
|
—
|
|
|
(2,450
|
)
|
|
9,941
|
|
||
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
|
|
Consoli-
dating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Utility property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Land
|
|
$
|
44,706
|
|
|
6,191
|
|
|
3,016
|
|
|
—
|
|
|
—
|
|
|
$
|
53,913
|
|
Plant and equipment
|
|
4,368,428
|
|
|
1,278,884
|
|
|
1,130,942
|
|
|
—
|
|
|
—
|
|
|
6,778,254
|
|
||
Less accumulated depreciation
|
|
(1,441,963
|
)
|
|
(524,759
|
)
|
|
(493,707
|
)
|
|
—
|
|
|
—
|
|
|
(2,460,429
|
)
|
||
Construction in progress
|
|
262,098
|
|
|
16,459
|
|
|
28,935
|
|
|
—
|
|
|
—
|
|
|
307,492
|
|
||
Utility property, plant and equipment, net
|
|
3,233,269
|
|
|
776,775
|
|
|
669,186
|
|
|
—
|
|
|
—
|
|
|
4,679,230
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation
|
|
5,762
|
|
|
115
|
|
|
1,532
|
|
|
—
|
|
|
—
|
|
|
7,409
|
|
||
Total property, plant and equipment, net
|
|
3,239,031
|
|
|
776,890
|
|
|
670,718
|
|
|
—
|
|
|
—
|
|
|
4,686,639
|
|
||
Investment in wholly owned subsidiaries, at equity
|
|
559,671
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(559,671
|
)
|
|
—
|
|
||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
3,454
|
|
|
4,714
|
|
|
1,718
|
|
|
101
|
|
|
—
|
|
|
9,987
|
|
||
Advances to affiliates
|
|
—
|
|
|
6,600
|
|
|
4,000
|
|
|
—
|
|
|
(10,600
|
)
|
|
—
|
|
||
Customer accounts receivable, net
|
|
92,961
|
|
|
20,830
|
|
|
19,344
|
|
|
—
|
|
|
—
|
|
|
133,135
|
|
||
Accrued unbilled revenues, net
|
|
80,644
|
|
|
15,145
|
|
|
13,918
|
|
|
—
|
|
|
—
|
|
|
109,707
|
|
||
Other accounts receivable, net
|
|
7,402
|
|
|
2,797
|
|
|
1,244
|
|
|
—
|
|
|
(7,346
|
)
|
|
4,097
|
|
||
Fuel oil stock, at average cost
|
|
40,460
|
|
|
8,034
|
|
|
11,759
|
|
|
—
|
|
|
—
|
|
|
60,253
|
|
||
Materials and supplies, at average cost
|
|
28,865
|
|
|
8,960
|
|
|
18,134
|
|
|
—
|
|
|
—
|
|
|
55,959
|
|
||
Prepayments and other
|
|
22,197
|
|
|
4,183
|
|
|
3,647
|
|
|
—
|
|
|
(156
|
)
|
|
29,871
|
|
||
Regulatory assets
|
|
63,608
|
|
|
4,341
|
|
|
4,824
|
|
|
—
|
|
|
—
|
|
|
72,773
|
|
||
Total current assets
|
|
339,591
|
|
|
75,604
|
|
|
78,588
|
|
|
101
|
|
|
(18,102
|
)
|
|
475,782
|
|
||
Other long-term assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Regulatory assets
|
|
639,689
|
|
|
118,655
|
|
|
105,847
|
|
|
—
|
|
|
—
|
|
|
864,191
|
|
||
Unamortized debt expense
|
|
472
|
|
|
83
|
|
|
106
|
|
|
—
|
|
|
—
|
|
|
661
|
|
||
Other
|
|
50,424
|
|
|
14,981
|
|
|
14,823
|
|
|
—
|
|
|
—
|
|
|
80,228
|
|
||
Total other long-term assets
|
|
690,585
|
|
|
133,719
|
|
|
120,776
|
|
|
—
|
|
|
—
|
|
|
945,080
|
|
||
Total assets
|
|
$
|
4,828,878
|
|
|
986,213
|
|
|
870,082
|
|
|
101
|
|
|
(577,773
|
)
|
|
$
|
6,107,501
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock equity
|
|
$
|
1,829,075
|
|
|
294,319
|
|
|
265,251
|
|
|
101
|
|
|
(559,671
|
)
|
|
$
|
1,829,075
|
|
Cumulative preferred stock—not subject to mandatory redemption
|
|
22,293
|
|
|
7,000
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
915,097
|
|
|
213,658
|
|
|
189,868
|
|
|
—
|
|
|
—
|
|
|
1,318,623
|
|
||
Total capitalization
|
|
2,766,465
|
|
|
514,977
|
|
|
460,119
|
|
|
101
|
|
|
(559,671
|
)
|
|
3,181,991
|
|
||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Short-term borrowings from non-affiliates
|
|
6,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,000
|
|
||
Short-term borrowings from affiliate
|
|
10,600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,600
|
)
|
|
—
|
|
||
Accounts payable
|
|
94,618
|
|
|
15,291
|
|
|
14,331
|
|
|
—
|
|
|
—
|
|
|
124,240
|
|
||
Interest and preferred dividends payable
|
|
17,870
|
|
|
3,973
|
|
|
3,429
|
|
|
—
|
|
|
(11
|
)
|
|
25,261
|
|
||
Taxes accrued
|
|
134,935
|
|
|
27,571
|
|
|
25,919
|
|
|
—
|
|
|
(5,060
|
)
|
|
183,365
|
|
||
Regulatory liabilities
|
|
576
|
|
|
1,029
|
|
|
1,794
|
|
|
—
|
|
|
—
|
|
|
3,399
|
|
||
Other
|
|
45,662
|
|
|
8,173
|
|
|
13,111
|
|
|
—
|
|
|
(7,335
|
)
|
|
59,611
|
|
||
Total current liabilities
|
|
310,261
|
|
|
56,037
|
|
|
58,584
|
|
|
—
|
|
|
(23,006
|
)
|
|
401,876
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Deferred income taxes
|
|
540,857
|
|
|
113,277
|
|
|
108,573
|
|
|
—
|
|
|
4,904
|
|
|
767,611
|
|
||
Regulatory liabilities
|
|
328,530
|
|
|
100,973
|
|
|
33,314
|
|
|
—
|
|
|
—
|
|
|
462,817
|
|
||
Unamortized tax credits
|
|
57,577
|
|
|
16,048
|
|
|
15,202
|
|
|
—
|
|
|
—
|
|
|
88,827
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
431,191
|
|
|
72,366
|
|
|
78,156
|
|
|
—
|
|
|
—
|
|
|
581,713
|
|
||
Other
|
|
27,097
|
|
|
14,383
|
|
|
16,068
|
|
|
—
|
|
|
—
|
|
|
57,548
|
|
||
Total deferred credits and other liabilities
|
|
1,385,252
|
|
|
317,047
|
|
|
251,313
|
|
|
—
|
|
|
4,904
|
|
|
1,958,516
|
|
||
Contributions in aid of construction
|
|
366,900
|
|
|
98,152
|
|
|
100,066
|
|
|
—
|
|
|
—
|
|
|
565,118
|
|
||
Total capitalization and liabilities
|
|
$
|
4,828,878
|
|
|
986,213
|
|
|
870,082
|
|
|
101
|
|
|
(577,773
|
)
|
|
$
|
6,107,501
|
|
(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
|
|
$
|
43,956
|
|
|
6,181
|
|
|
3,016
|
|
|
—
|
|
|
—
|
|
|
$
|
53,153
|
|
Plant and equipment
|
|
4,241,060
|
|
|
1,255,185
|
|
|
1,109,487
|
|
|
—
|
|
|
—
|
|
|
6,605,732
|
|
||
Less accumulated depreciation
|
|
(1,382,972
|
)
|
|
(507,666
|
)
|
|
(478,644
|
)
|
|
—
|
|
|
—
|
|
|
(2,369,282
|
)
|
||
Construction in progress
|
|
180,194
|
|
|
12,510
|
|
|
19,038
|
|
|
—
|
|
|
—
|
|
|
211,742
|
|
||
Utility property, plant and equipment, net
|
|
3,082,238
|
|
|
766,210
|
|
|
652,897
|
|
|
—
|
|
|
—
|
|
|
4,501,345
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation
|
|
5,760
|
|
|
115
|
|
|
1,532
|
|
|
—
|
|
|
—
|
|
|
7,407
|
|
||
Total property, plant and equipment, net
|
|
3,087,998
|
|
|
766,325
|
|
|
654,429
|
|
|
—
|
|
|
—
|
|
|
4,508,752
|
|
||
Investment in wholly owned subsidiaries,
at equity
|
|
550,946
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(550,946
|
)
|
|
—
|
|
||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
61,388
|
|
|
10,749
|
|
|
2,048
|
|
|
101
|
|
|
—
|
|
|
74,286
|
|
||
Advances to affiliates
|
|
—
|
|
|
3,500
|
|
|
10,000
|
|
|
—
|
|
|
(13,500
|
)
|
|
—
|
|
||
Customer accounts receivable, net
|
|
86,373
|
|
|
20,055
|
|
|
17,260
|
|
|
—
|
|
|
—
|
|
|
123,688
|
|
||
Accrued unbilled revenues, net
|
|
65,821
|
|
|
13,564
|
|
|
12,308
|
|
|
—
|
|
|
—
|
|
|
91,693
|
|
||
Other accounts receivable, net
|
|
7,652
|
|
|
2,445
|
|
|
1,416
|
|
|
—
|
|
|
(6,280
|
)
|
|
5,233
|
|
||
Fuel oil stock, at average cost
|
|
47,239
|
|
|
8,229
|
|
|
10,962
|
|
|
—
|
|
|
—
|
|
|
66,430
|
|
||
Materials and supplies, at average cost
|
|
29,928
|
|
|
7,380
|
|
|
16,371
|
|
|
—
|
|
|
—
|
|
|
53,679
|
|
||
Prepayments and other
|
|
16,502
|
|
|
5,352
|
|
|
2,179
|
|
|
—
|
|
|
(933
|
)
|
|
23,100
|
|
||
Regulatory assets
|
|
60,185
|
|
|
3,483
|
|
|
2,364
|
|
|
—
|
|
|
—
|
|
|
66,032
|
|
||
Total current assets
|
|
375,088
|
|
|
74,757
|
|
|
74,908
|
|
|
101
|
|
|
(20,713
|
)
|
|
504,141
|
|
||
Other long-term assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Regulatory assets
|
|
662,232
|
|
|
120,863
|
|
|
108,324
|
|
|
—
|
|
|
—
|
|
|
891,419
|
|
||
Unamortized debt expense
|
|
151
|
|
|
23
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
208
|
|
||
Other
|
|
43,743
|
|
|
13,573
|
|
|
13,592
|
|
|
—
|
|
|
—
|
|
|
70,908
|
|
||
Total other long-term assets
|
|
706,126
|
|
|
134,459
|
|
|
121,950
|
|
|
—
|
|
|
—
|
|
|
962,535
|
|
||
Total assets
|
|
$
|
4,720,158
|
|
|
975,541
|
|
|
851,287
|
|
|
101
|
|
|
(571,659
|
)
|
|
$
|
5,975,428
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock equity
|
|
$
|
1,799,787
|
|
|
291,291
|
|
|
259,554
|
|
|
101
|
|
|
(550,946
|
)
|
|
$
|
1,799,787
|
|
Cumulative preferred stock—not subject to mandatory redemption
|
|
22,293
|
|
|
7,000
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
915,437
|
|
|
213,703
|
|
|
190,120
|
|
|
—
|
|
|
—
|
|
|
1,319,260
|
|
||
Total capitalization
|
|
2,737,517
|
|
|
511,994
|
|
|
454,674
|
|
|
101
|
|
|
(550,946
|
)
|
|
3,153,340
|
|
||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Short-term borrowings from affiliate
|
|
13,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,500
|
)
|
|
—
|
|
||
Accounts payable
|
|
86,369
|
|
|
18,126
|
|
|
13,319
|
|
|
—
|
|
|
—
|
|
|
117,814
|
|
||
Interest and preferred dividends payable
|
|
15,761
|
|
|
4,206
|
|
|
2,882
|
|
|
—
|
|
|
(11
|
)
|
|
22,838
|
|
||
Taxes accrued
|
|
120,176
|
|
|
28,100
|
|
|
25,387
|
|
|
—
|
|
|
(933
|
)
|
|
172,730
|
|
||
Regulatory liabilities
|
|
—
|
|
|
2,219
|
|
|
1,543
|
|
|
—
|
|
|
—
|
|
|
3,762
|
|
||
Other
|
|
41,352
|
|
|
7,637
|
|
|
12,501
|
|
|
—
|
|
|
(6,269
|
)
|
|
55,221
|
|
||
Total current liabilities
|
|
277,158
|
|
|
60,288
|
|
|
55,632
|
|
|
—
|
|
|
(20,713
|
)
|
|
372,365
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Deferred income taxes
|
|
524,433
|
|
|
108,052
|
|
|
100,911
|
|
|
—
|
|
|
263
|
|
|
733,659
|
|
||
Regulatory liabilities
|
|
281,112
|
|
|
93,974
|
|
|
31,845
|
|
|
—
|
|
|
—
|
|
|
406,931
|
|
||
Unamortized tax credits
|
|
57,844
|
|
|
15,994
|
|
|
15,123
|
|
|
—
|
|
|
—
|
|
|
88,961
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
444,458
|
|
|
75,005
|
|
|
80,263
|
|
|
—
|
|
|
—
|
|
|
599,726
|
|
||
Other
|
|
49,191
|
|
|
13,024
|
|
|
14,969
|
|
|
—
|
|
|
(263
|
)
|
|
76,921
|
|
||
Total deferred credits and other liabilities
|
|
1,357,038
|
|
|
306,049
|
|
|
243,111
|
|
|
—
|
|
|
—
|
|
|
1,906,198
|
|
||
Contributions in aid of construction
|
|
348,445
|
|
|
97,210
|
|
|
97,870
|
|
|
—
|
|
|
—
|
|
|
543,525
|
|
||
Total capitalization and liabilities
|
|
$
|
4,720,158
|
|
|
975,541
|
|
|
851,287
|
|
|
101
|
|
|
(571,659
|
)
|
|
$
|
5,975,428
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Balance, December 31, 2016
|
|
$
|
1,799,787
|
|
|
291,291
|
|
|
259,554
|
|
|
101
|
|
|
(550,946
|
)
|
|
$
|
1,799,787
|
|
Net income for common stock
|
|
94,596
|
|
|
14,650
|
|
|
14,656
|
|
|
—
|
|
|
(29,306
|
)
|
|
94,596
|
|
||
Other comprehensive income, net of taxes
|
|
521
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
521
|
|
||
Common stock dividends
|
|
(65,825
|
)
|
|
(11,622
|
)
|
|
(8,959
|
)
|
|
—
|
|
|
20,581
|
|
|
(65,825
|
)
|
||
Common stock issuance expenses
|
|
(4
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(4
|
)
|
||
Balance, September 30, 2017
|
|
$
|
1,829,075
|
|
|
294,319
|
|
|
265,251
|
|
|
101
|
|
|
(559,671
|
)
|
|
$
|
1,829,075
|
|
(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 |
||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income
|
|
$
|
95,406
|
|
|
15,050
|
|
|
14,942
|
|
|
—
|
|
|
(29,306
|
)
|
|
$
|
96,092
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Equity in earnings of subsidiaries
|
|
(29,381
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,306
|
|
|
(75
|
)
|
||
Common stock dividends received from subsidiaries
|
|
20,656
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20,581
|
)
|
|
75
|
|
||
Depreciation of property, plant and equipment
|
|
98,167
|
|
|
29,056
|
|
|
17,355
|
|
|
—
|
|
|
—
|
|
|
144,578
|
|
||
Other amortization
|
|
2,168
|
|
|
1,718
|
|
|
2,232
|
|
|
—
|
|
|
—
|
|
|
6,118
|
|
||
Deferred income taxes
|
|
12,166
|
|
|
5,237
|
|
|
7,493
|
|
|
—
|
|
|
4,641
|
|
|
29,537
|
|
||
Allowance for equity funds used during construction
|
|
(7,823
|
)
|
|
(416
|
)
|
|
(669
|
)
|
|
—
|
|
|
—
|
|
|
(8,908
|
)
|
||
Other
|
|
216
|
|
|
566
|
|
|
(256
|
)
|
|
—
|
|
|
—
|
|
|
526
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Increase in accounts receivable
|
|
(6,114
|
)
|
|
(1,127
|
)
|
|
(1,912
|
)
|
|
—
|
|
|
1,066
|
|
|
(8,087
|
)
|
||
Increase in accrued unbilled revenues
|
|
(14,823
|
)
|
|
(1,581
|
)
|
|
(1,610
|
)
|
|
—
|
|
|
—
|
|
|
(18,014
|
)
|
||
Decrease (increase) in fuel oil stock
|
|
6,779
|
|
|
195
|
|
|
(797
|
)
|
|
—
|
|
|
—
|
|
|
6,177
|
|
||
Decrease (increase) in materials and supplies
|
|
1,063
|
|
|
(1,580
|
)
|
|
(1,763
|
)
|
|
—
|
|
|
—
|
|
|
(2,280
|
)
|
||
Decrease (increase) in regulatory assets
|
|
9,471
|
|
|
(2,935
|
)
|
|
(2,614
|
)
|
|
—
|
|
|
—
|
|
|
3,922
|
|
||
Increase (decrease) in accounts payable
|
|
(22,224
|
)
|
|
(2,955
|
)
|
|
2,338
|
|
|
—
|
|
|
—
|
|
|
(22,841
|
)
|
||
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
|
10,920
|
|
|
(758
|
)
|
|
210
|
|
|
—
|
|
|
(5,081
|
)
|
|
5,291
|
|
||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability
|
|
532
|
|
|
39
|
|
|
(118
|
)
|
|
—
|
|
|
—
|
|
|
453
|
|
||
Change in other assets and liabilities
|
|
(2,709
|
)
|
|
1,059
|
|
|
54
|
|
|
—
|
|
|
(1,066
|
)
|
|
(2,662
|
)
|
||
Net cash provided by operating activities
|
|
174,470
|
|
|
41,568
|
|
|
34,885
|
|
|
—
|
|
|
(21,021
|
)
|
|
229,902
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(207,493
|
)
|
|
(36,405
|
)
|
|
(34,106
|
)
|
|
—
|
|
|
—
|
|
|
(278,004
|
)
|
||
Contributions in aid of construction
|
|
34,787
|
|
|
3,460
|
|
|
2,356
|
|
|
—
|
|
|
—
|
|
|
40,603
|
|
||
Other
|
|
6,089
|
|
|
871
|
|
|
714
|
|
|
—
|
|
|
440
|
|
|
8,114
|
|
||
Advances from affiliates
|
|
—
|
|
|
(3,100
|
)
|
|
6,000
|
|
|
—
|
|
|
(2,900
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
|
(166,617
|
)
|
|
(35,174
|
)
|
|
(25,036
|
)
|
|
—
|
|
|
(2,460
|
)
|
|
(229,287
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock dividends
|
|
(65,825
|
)
|
|
(11,622
|
)
|
|
(8,959
|
)
|
|
—
|
|
|
20,581
|
|
|
(65,825
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(810
|
)
|
|
(400
|
)
|
|
(286
|
)
|
|
—
|
|
|
—
|
|
|
(1,496
|
)
|
||
Proceeds from issuance of special purpose revenue bonds
|
|
162,000
|
|
|
28,000
|
|
|
75,000
|
|
|
—
|
|
|
|
|
|
265,000
|
|
||
Funds transferred for redemption of special purpose revenue bonds
|
|
(162,000
|
)
|
|
(28,000
|
)
|
|
(75,000
|
)
|
|
—
|
|
|
—
|
|
|
(265,000
|
)
|
||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
3,100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,900
|
|
|
6,000
|
|
||
Other
|
|
(2,252
|
)
|
|
(407
|
)
|
|
(934
|
)
|
|
—
|
|
|
—
|
|
|
(3,593
|
)
|
||
Net cash used in financing activities
|
|
(65,787
|
)
|
|
(12,429
|
)
|
|
(10,179
|
)
|
|
—
|
|
|
23,481
|
|
|
(64,914
|
)
|
||
Net decrease in cash and cash equivalents
|
|
(57,934
|
)
|
|
(6,035
|
)
|
|
(330
|
)
|
|
—
|
|
|
—
|
|
|
(64,299
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
61,388
|
|
|
10,749
|
|
|
2,048
|
|
|
101
|
|
|
—
|
|
|
74,286
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
3,454
|
|
|
4,714
|
|
|
1,718
|
|
|
101
|
|
|
—
|
|
|
$
|
9,987
|
|
(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
|
|
||
Allowance for equity funds used during construction
|
|
(4,771
|
)
|
|
(571
|
)
|
|
(668
|
)
|
|
—
|
|
|
—
|
|
|
(6,010
|
)
|
||
Other
|
|
2,925
|
|
|
162
|
|
|
147
|
|
|
—
|
|
|
—
|
|
|
3,234
|
|
||
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 taxes, tax credits and 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
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Interest and dividend income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and fees on loans
|
|
$
|
52,210
|
|
|
$
|
50,444
|
|
|
$
|
155,269
|
|
|
$
|
148,571
|
|
Interest and dividends on investment securities
|
|
6,850
|
|
|
4,759
|
|
|
20,593
|
|
|
14,219
|
|
||||
Total interest and dividend income
|
|
59,060
|
|
|
55,203
|
|
|
175,862
|
|
|
162,790
|
|
||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest on deposit liabilities
|
|
2,444
|
|
|
1,871
|
|
|
6,858
|
|
|
5,154
|
|
||||
Interest on other borrowings
|
|
470
|
|
|
1,464
|
|
|
2,110
|
|
|
4,416
|
|
||||
Total interest expense
|
|
2,914
|
|
|
3,335
|
|
|
8,968
|
|
|
9,570
|
|
||||
Net interest income
|
|
56,146
|
|
|
51,868
|
|
|
166,894
|
|
|
153,220
|
|
||||
Provision for loan losses
|
|
490
|
|
|
5,747
|
|
|
7,231
|
|
|
15,266
|
|
||||
Net interest income after provision for loan losses
|
|
55,656
|
|
|
46,121
|
|
|
159,663
|
|
|
137,954
|
|
||||
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fees from other financial services
|
|
5,635
|
|
|
5,599
|
|
|
17,055
|
|
|
16,799
|
|
||||
Fee income on deposit liabilities
|
|
5,533
|
|
|
5,627
|
|
|
16,526
|
|
|
16,045
|
|
||||
Fee income on other financial products
|
|
1,904
|
|
|
2,151
|
|
|
5,741
|
|
|
6,563
|
|
||||
Bank-owned life insurance
|
|
1,257
|
|
|
1,616
|
|
|
4,165
|
|
|
3,620
|
|
||||
Mortgage banking income
|
|
520
|
|
|
2,347
|
|
|
1,896
|
|
|
5,096
|
|
||||
Gains on sale of investment securities, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
598
|
|
||||
Other income, net
|
|
380
|
|
|
1,165
|
|
|
1,229
|
|
|
1,786
|
|
||||
Total noninterest income
|
|
15,229
|
|
|
18,505
|
|
|
46,612
|
|
|
50,507
|
|
||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and employee benefits
|
|
23,724
|
|
|
22,844
|
|
|
71,703
|
|
|
67,197
|
|
||||
Occupancy
|
|
4,284
|
|
|
3,991
|
|
|
12,623
|
|
|
12,244
|
|
||||
Data processing
|
|
3,262
|
|
|
3,150
|
|
|
9,749
|
|
|
9,599
|
|
||||
Services
|
|
2,863
|
|
|
2,427
|
|
|
7,989
|
|
|
8,093
|
|
||||
Equipment
|
|
1,814
|
|
|
1,759
|
|
|
5,333
|
|
|
5,193
|
|
||||
Office supplies, printing and postage
|
|
1,444
|
|
|
1,483
|
|
|
4,506
|
|
|
4,431
|
|
||||
Marketing
|
|
934
|
|
|
747
|
|
|
2,290
|
|
|
2,507
|
|
||||
FDIC insurance
|
|
746
|
|
|
907
|
|
|
2,296
|
|
|
2,704
|
|
||||
Other expense
|
|
5,050
|
|
|
4,591
|
|
|
14,066
|
|
|
13,948
|
|
||||
Total noninterest expense
|
|
44,121
|
|
|
41,899
|
|
|
130,555
|
|
|
125,916
|
|
||||
Income before income taxes
|
|
26,764
|
|
|
22,727
|
|
|
75,720
|
|
|
62,545
|
|
||||
Income taxes
|
|
9,172
|
|
|
7,623
|
|
|
25,582
|
|
|
21,483
|
|
||||
Net income
|
|
$
|
17,592
|
|
|
$
|
15,104
|
|
|
$
|
50,138
|
|
|
$
|
41,062
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income
|
|
$
|
17,592
|
|
|
$
|
15,104
|
|
|
$
|
50,138
|
|
|
$
|
41,062
|
|
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 $(137), $1,417, $(1,619) and $(5,413), respectively
|
|
208
|
|
|
(2,147
|
)
|
|
2,452
|
|
|
8,197
|
|
||||
Reclassification adjustment for net realized gains included in net income, net of taxes of nil, nil, nil and $238, respectively
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(360
|
)
|
||||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $138, $144, $675 and $421, respectively
|
|
209
|
|
|
219
|
|
|
1,023
|
|
|
638
|
|
||||
Other comprehensive income (loss), net of taxes
|
|
417
|
|
|
(1,928
|
)
|
|
3,475
|
|
|
8,475
|
|
||||
Comprehensive income
|
|
$
|
18,009
|
|
|
$
|
13,176
|
|
|
$
|
53,613
|
|
|
$
|
49,537
|
|
(in thousands)
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and due from banks
|
|
|
|
|
$
|
120,492
|
|
|
|
|
|
$
|
137,083
|
|
||
Interest-bearing deposits
|
|
|
|
69,223
|
|
|
|
|
52,128
|
|
||||||
Restricted cash
|
|
|
|
—
|
|
|
|
|
1,764
|
|
||||||
Available-for-sale investment securities, at fair value
|
|
|
|
|
1,320,110
|
|
|
|
|
|
1,105,182
|
|
||||
Stock in Federal Home Loan Bank, at cost
|
|
|
|
|
9,706
|
|
|
|
|
|
11,218
|
|
||||
Loans receivable held for investment
|
|
|
|
|
4,676,281
|
|
|
|
|
|
4,738,693
|
|
||||
Allowance for loan losses
|
|
|
|
|
(53,047
|
)
|
|
|
|
|
(55,533
|
)
|
||||
Net loans
|
|
|
|
|
4,623,234
|
|
|
|
|
|
4,683,160
|
|
||||
Loans held for sale, at lower of cost or fair value
|
|
|
|
|
15,728
|
|
|
|
|
|
18,817
|
|
||||
Other
|
|
|
|
|
378,224
|
|
|
|
|
|
329,815
|
|
||||
Goodwill
|
|
|
|
|
82,190
|
|
|
|
|
|
82,190
|
|
||||
Total assets
|
|
|
|
|
$
|
6,618,907
|
|
|
|
|
|
$
|
6,421,357
|
|
||
|
|
|
|
|
|
|
|
|
||||||||
Liabilities and shareholder’s equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposit liabilities—noninterest-bearing
|
|
|
|
|
$
|
1,710,698
|
|
|
|
|
|
$
|
1,639,051
|
|
||
Deposit liabilities—interest-bearing
|
|
|
|
|
4,041,628
|
|
|
|
|
|
3,909,878
|
|
||||
Other borrowings
|
|
|
|
|
153,552
|
|
|
|
|
|
192,618
|
|
||||
Other
|
|
|
|
|
107,558
|
|
|
|
|
|
101,635
|
|
||||
Total liabilities
|
|
|
|
|
6,013,436
|
|
|
|
|
|
5,843,182
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock
|
|
|
|
|
1
|
|
|
|
|
|
1
|
|
||||
Additional paid in capital
|
|
|
|
344,512
|
|
|
|
|
342,704
|
|
||||||
Retained earnings
|
|
|
|
|
279,956
|
|
|
|
|
|
257,943
|
|
||||
Accumulated other comprehensive loss, net of tax benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized losses on securities
|
|
$
|
(5,479
|
)
|
|
|
|
|
$
|
(7,931
|
)
|
|
|
|
||
Retirement benefit plans
|
|
(13,519
|
)
|
|
(18,998
|
)
|
|
(14,542
|
)
|
|
(22,473
|
)
|
||||
Total shareholder’s equity
|
|
|
|
|
605,471
|
|
|
|
|
|
578,175
|
|
||||
Total liabilities and shareholder’s equity
|
|
|
|
|
$
|
6,618,907
|
|
|
|
|
|
$
|
6,421,357
|
|
||
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bank-owned life insurance
|
|
|
|
|
$
|
147,391
|
|
|
|
|
|
$
|
143,197
|
|
||
Premises and equipment, net
|
|
|
|
|
123,326
|
|
|
|
|
|
90,570
|
|
||||
Prepaid expenses
|
|
|
|
|
5,356
|
|
|
|
|
|
3,348
|
|
||||
Accrued interest receivable
|
|
|
|
|
17,488
|
|
|
|
|
|
16,824
|
|
||||
Mortgage-servicing rights
|
|
|
|
|
9,070
|
|
|
|
|
|
9,373
|
|
||||
Low-income housing equity investments
|
|
|
|
54,515
|
|
|
|
|
47,081
|
|
||||||
Real estate acquired in settlement of loans, net
|
|
|
|
|
1,183
|
|
|
|
|
|
1,189
|
|
||||
Other
|
|
|
|
|
19,895
|
|
|
|
|
|
18,233
|
|
||||
|
|
|
|
|
$
|
378,224
|
|
|
|
|
|
$
|
329,815
|
|
||
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued expenses
|
|
|
|
|
$
|
41,698
|
|
|
|
|
|
$
|
36,754
|
|
||
Federal and state income taxes payable
|
|
|
|
|
6,829
|
|
|
|
|
|
4,728
|
|
||||
Cashier’s checks
|
|
|
|
|
27,448
|
|
|
|
|
|
24,156
|
|
||||
Advance payments by borrowers
|
|
|
|
|
4,867
|
|
|
|
|
|
10,335
|
|
||||
Other
|
|
|
|
|
26,716
|
|
|
|
|
|
25,662
|
|
||||
|
|
|
|
|
$
|
107,558
|
|
|
|
|
|
$
|
101,635
|
|
|
|
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, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury and federal agency obligations
|
|
$
|
182,535
|
|
|
$
|
882
|
|
|
$
|
(1,299
|
)
|
|
$
|
182,118
|
|
|
15
|
|
|
$
|
91,203
|
|
|
$
|
(1,064
|
)
|
|
2
|
|
|
$
|
13,072
|
|
|
$
|
(235
|
)
|
Mortgage-related securities- FNMA, FHLMC and GNMA
|
|
1,131,245
|
|
|
2,127
|
|
|
(10,807
|
)
|
|
1,122,565
|
|
|
84
|
|
|
686,186
|
|
|
(7,709
|
)
|
|
29
|
|
|
138,051
|
|
|
(3,098
|
)
|
||||||||
Mortgage revenue bond
|
|
15,427
|
|
|
—
|
|
|
—
|
|
|
15,427
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
|
$
|
1,329,207
|
|
|
$
|
3,009
|
|
|
$
|
(12,106
|
)
|
|
$
|
1,320,110
|
|
|
99
|
|
|
$
|
777,389
|
|
|
$
|
(8,773
|
)
|
|
31
|
|
|
$
|
151,123
|
|
|
$
|
(3,333
|
)
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury and federal agency obligations
|
|
$
|
193,515
|
|
|
$
|
920
|
|
|
$
|
(2,154
|
)
|
|
$
|
192,281
|
|
|
18
|
|
|
$
|
123,475
|
|
|
$
|
(2,010
|
)
|
|
1
|
|
|
$
|
3,485
|
|
|
$
|
(144
|
)
|
Mortgage-related securities- FNMA, FHLMC and GNMA
|
|
909,408
|
|
|
1,742
|
|
|
(13,676
|
)
|
|
897,474
|
|
|
88
|
|
|
709,655
|
|
|
(12,143
|
)
|
|
13
|
|
|
47,485
|
|
|
(1,533
|
)
|
||||||||
Mortgage revenue bond
|
|
15,427
|
|
|
—
|
|
|
—
|
|
|
15,427
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
|
$
|
1,118,350
|
|
|
$
|
2,662
|
|
|
$
|
(15,830
|
)
|
|
$
|
1,105,182
|
|
|
106
|
|
|
$
|
833,130
|
|
|
$
|
(14,153
|
)
|
|
14
|
|
|
$
|
50,970
|
|
|
$
|
(1,677
|
)
|
September 30, 2017
|
|
Amortized cost
|
|
Fair value
|
||||
(in thousands)
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
9,998
|
|
|
$
|
9,999
|
|
Due after one year through five years
|
|
77,138
|
|
|
77,331
|
|
||
Due after five years through ten years
|
|
81,464
|
|
|
81,170
|
|
||
Due after ten years
|
|
29,362
|
|
|
29,045
|
|
||
|
|
197,962
|
|
|
197,545
|
|
||
Mortgage-related securities-FNMA, FHLMC and GNMA
|
|
1,131,245
|
|
|
1,122,565
|
|
||
Total available-for-sale securities
|
|
$
|
1,329,207
|
|
|
$
|
1,320,110
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
(in thousands)
|
|
|
|
|
|
||
Real estate:
|
|
|
|
|
|
||
Residential 1-4 family
|
$
|
2,066,023
|
|
|
$
|
2,048,051
|
|
Commercial real estate
|
745,583
|
|
|
800,395
|
|
||
Home equity line of credit
|
905,249
|
|
|
863,163
|
|
||
Residential land
|
18,611
|
|
|
18,889
|
|
||
Commercial construction
|
128,407
|
|
|
126,768
|
|
||
Residential construction
|
13,031
|
|
|
16,080
|
|
||
Total real estate
|
3,876,904
|
|
|
3,873,346
|
|
||
Commercial
|
589,669
|
|
|
692,051
|
|
||
Consumer
|
211,571
|
|
|
178,222
|
|
||
Total loans
|
4,678,144
|
|
|
4,743,619
|
|
||
Less: Deferred fees and discounts
|
(1,863
|
)
|
|
(4,926
|
)
|
||
Allowance for loan losses
|
(53,047
|
)
|
|
(55,533
|
)
|
||
Total loans, net
|
$
|
4,623,234
|
|
|
$
|
4,683,160
|
|
(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, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
$
|
3,130
|
|
|
$
|
18,840
|
|
|
$
|
5,527
|
|
|
$
|
1,264
|
|
|
$
|
4,706
|
|
|
$
|
9
|
|
|
$
|
14,552
|
|
|
$
|
8,328
|
|
|
$
|
—
|
|
|
$
|
56,356
|
|
Charge-offs
|
|
(522
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,215
|
)
|
|
(3,160
|
)
|
|
—
|
|
|
(4,897
|
)
|
||||||||||
Recoveries
|
|
33
|
|
|
—
|
|
|
164
|
|
|
259
|
|
|
—
|
|
|
—
|
|
|
326
|
|
|
316
|
|
|
—
|
|
|
1,098
|
|
||||||||||
Provision
|
|
347
|
|
|
(2,800
|
)
|
|
(36
|
)
|
|
(141
|
)
|
|
370
|
|
|
2
|
|
|
(595
|
)
|
|
3,343
|
|
|
—
|
|
|
490
|
|
||||||||||
Ending balance
|
|
$
|
2,988
|
|
|
$
|
16,040
|
|
|
$
|
5,655
|
|
|
$
|
1,382
|
|
|
$
|
5,076
|
|
|
$
|
11
|
|
|
$
|
13,068
|
|
|
$
|
8,827
|
|
|
$
|
—
|
|
|
$
|
53,047
|
|
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
|
|
Nine months ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
$
|
2,873
|
|
|
$
|
16,004
|
|
|
$
|
5,039
|
|
|
$
|
1,738
|
|
|
$
|
6,449
|
|
|
$
|
12
|
|
|
$
|
16,618
|
|
|
$
|
6,800
|
|
|
$
|
—
|
|
|
$
|
55,533
|
|
Charge-offs
|
|
(528
|
)
|
|
—
|
|
|
(14
|
)
|
|
(92
|
)
|
|
—
|
|
|
—
|
|
|
(3,477
|
)
|
|
(8,360
|
)
|
|
—
|
|
|
(12,471
|
)
|
||||||||||
Recoveries
|
|
91
|
|
|
—
|
|
|
294
|
|
|
477
|
|
|
—
|
|
|
—
|
|
|
922
|
|
|
970
|
|
|
—
|
|
|
2,754
|
|
||||||||||
Provision
|
|
552
|
|
|
36
|
|
|
336
|
|
|
(741
|
)
|
|
(1,373
|
)
|
|
(1
|
)
|
|
(995
|
)
|
|
9,417
|
|
|
—
|
|
|
7,231
|
|
||||||||||
Ending balance
|
|
$
|
2,988
|
|
|
$
|
16,040
|
|
|
$
|
5,655
|
|
|
$
|
1,382
|
|
|
$
|
5,076
|
|
|
$
|
11
|
|
|
$
|
13,068
|
|
|
$
|
8,827
|
|
|
$
|
—
|
|
|
$
|
53,047
|
|
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
|
$
|
1,317
|
|
|
$
|
72
|
|
|
$
|
409
|
|
|
$
|
373
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
667
|
|
|
$
|
30
|
|
|
|
|
$
|
2,868
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
1,671
|
|
|
$
|
15,968
|
|
|
$
|
5,246
|
|
|
$
|
1,009
|
|
|
$
|
5,076
|
|
|
$
|
11
|
|
|
$
|
12,401
|
|
|
$
|
8,797
|
|
|
$
|
—
|
|
|
$
|
50,179
|
|
Financing Receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance
|
|
$
|
2,066,023
|
|
|
$
|
745,583
|
|
|
$
|
905,249
|
|
|
$
|
18,611
|
|
|
$
|
128,407
|
|
|
$
|
13,031
|
|
|
$
|
589,669
|
|
|
$
|
211,571
|
|
|
|
|
$
|
4,678,144
|
|
||
Ending balance: individually evaluated for impairment
|
|
$
|
19,757
|
|
|
$
|
1,281
|
|
|
$
|
7,078
|
|
|
$
|
2,385
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,486
|
|
|
$
|
67
|
|
|
|
|
$
|
36,054
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
2,046,266
|
|
|
$
|
744,302
|
|
|
$
|
898,171
|
|
|
$
|
16,226
|
|
|
$
|
128,407
|
|
|
$
|
13,031
|
|
|
$
|
584,183
|
|
|
$
|
211,504
|
|
|
|
|
$
|
4,642,090
|
|
||
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
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
|
$
|
1,352
|
|
|
$
|
80
|
|
|
$
|
215
|
|
|
$
|
789
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,641
|
|
|
$
|
6
|
|
|
|
|
$
|
4,083
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
1,521
|
|
|
$
|
15,924
|
|
|
$
|
4,824
|
|
|
$
|
949
|
|
|
$
|
6,449
|
|
|
$
|
12
|
|
|
$
|
14,977
|
|
|
$
|
6,794
|
|
|
$
|
—
|
|
|
$
|
51,450
|
|
Financing Receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance
|
|
$
|
2,048,051
|
|
|
$
|
800,395
|
|
|
$
|
863,163
|
|
|
$
|
18,889
|
|
|
$
|
126,768
|
|
|
$
|
16,080
|
|
|
$
|
692,051
|
|
|
$
|
178,222
|
|
|
|
|
$
|
4,743,619
|
|
||
Ending balance: individually evaluated for impairment
|
|
$
|
19,854
|
|
|
$
|
1,569
|
|
|
$
|
6,158
|
|
|
$
|
3,629
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,539
|
|
|
$
|
10
|
|
|
|
|
$
|
51,759
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
2,028,197
|
|
|
$
|
798,826
|
|
|
$
|
857,005
|
|
|
$
|
15,260
|
|
|
$
|
126,768
|
|
|
$
|
16,080
|
|
|
$
|
671,512
|
|
|
$
|
178,212
|
|
|
|
|
$
|
4,691,860
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(in thousands)
|
|
Commercial
real estate
|
|
Commercial
construction
|
|
Commercial
|
|
Commercial
real estate
|
|
Commercial
construction
|
|
Commercial
|
||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pass
|
|
$
|
647,599
|
|
|
$
|
103,892
|
|
|
$
|
539,336
|
|
|
$
|
701,657
|
|
|
$
|
102,955
|
|
|
$
|
614,139
|
|
Special mention
|
|
44,088
|
|
|
22,500
|
|
|
25,053
|
|
|
65,541
|
|
|
—
|
|
|
25,229
|
|
||||||
Substandard
|
|
53,896
|
|
|
2,015
|
|
|
23,130
|
|
|
33,197
|
|
|
23,813
|
|
|
52,683
|
|
||||||
Doubtful
|
|
—
|
|
|
—
|
|
|
2,150
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
745,583
|
|
|
$
|
128,407
|
|
|
$
|
589,669
|
|
|
$
|
800,395
|
|
|
$
|
126,768
|
|
|
$
|
692,051
|
|
(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, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
3,905
|
|
|
$
|
1,513
|
|
|
$
|
4,452
|
|
|
$
|
9,870
|
|
|
$
|
2,056,153
|
|
|
$
|
2,066,023
|
|
|
$
|
—
|
|
Commercial real estate
|
|
5,414
|
|
|
—
|
|
|
—
|
|
|
5,414
|
|
|
740,169
|
|
|
745,583
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
1,936
|
|
|
177
|
|
|
1,367
|
|
|
3,480
|
|
|
901,769
|
|
|
905,249
|
|
|
—
|
|
|||||||
Residential land
|
|
498
|
|
|
984
|
|
|
497
|
|
|
1,979
|
|
|
16,632
|
|
|
18,611
|
|
|
—
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
128,407
|
|
|
128,407
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,031
|
|
|
13,031
|
|
|
—
|
|
|||||||
Commercial
|
|
1,095
|
|
|
218
|
|
|
648
|
|
|
1,961
|
|
|
587,708
|
|
|
589,669
|
|
|
—
|
|
|||||||
Consumer
|
|
2,508
|
|
|
1,465
|
|
|
1,178
|
|
|
5,151
|
|
|
206,420
|
|
|
211,571
|
|
|
—
|
|
|||||||
Total loans
|
|
$
|
15,356
|
|
|
$
|
4,357
|
|
|
$
|
8,142
|
|
|
$
|
27,855
|
|
|
$
|
4,650,289
|
|
|
$
|
4,678,144
|
|
|
$
|
—
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
5,467
|
|
|
$
|
2,338
|
|
|
$
|
3,505
|
|
|
$
|
11,310
|
|
|
$
|
2,036,741
|
|
|
$
|
2,048,051
|
|
|
$
|
—
|
|
Commercial real estate
|
|
2,416
|
|
|
—
|
|
|
—
|
|
|
2,416
|
|
|
797,979
|
|
|
800,395
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
1,263
|
|
|
381
|
|
|
1,342
|
|
|
2,986
|
|
|
860,177
|
|
|
863,163
|
|
|
—
|
|
|||||||
Residential land
|
|
—
|
|
|
—
|
|
|
255
|
|
|
255
|
|
|
18,634
|
|
|
18,889
|
|
|
—
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
126,768
|
|
|
126,768
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,080
|
|
|
16,080
|
|
|
—
|
|
|||||||
Commercial
|
|
413
|
|
|
510
|
|
|
1,303
|
|
|
2,226
|
|
|
689,825
|
|
|
692,051
|
|
|
—
|
|
|||||||
Consumer
|
|
1,945
|
|
|
1,001
|
|
|
963
|
|
|
3,909
|
|
|
174,313
|
|
|
178,222
|
|
|
—
|
|
|||||||
Total loans
|
|
$
|
11,504
|
|
|
$
|
4,230
|
|
|
$
|
7,368
|
|
|
$
|
23,102
|
|
|
$
|
4,720,517
|
|
|
$
|
4,743,619
|
|
|
$
|
—
|
|
(in thousands)
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Real estate:
|
|
|
|
|
|
|
||
Residential 1-4 family
|
|
$
|
12,853
|
|
|
$
|
11,154
|
|
Commercial real estate
|
|
—
|
|
|
223
|
|
||
Home equity line of credit
|
|
4,000
|
|
|
3,080
|
|
||
Residential land
|
|
1,022
|
|
|
878
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
3,691
|
|
|
6,708
|
|
||
Consumer
|
|
1,791
|
|
|
1,282
|
|
||
Total nonaccrual loans
|
|
$
|
23,357
|
|
|
$
|
23,325
|
|
Real estate:
|
|
|
|
|
||||
Residential 1-4 family
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
||
Home equity line of credit
|
|
—
|
|
|
—
|
|
||
Residential land
|
|
—
|
|
|
—
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
—
|
|
|
—
|
|
||
Consumer
|
|
—
|
|
|
—
|
|
||
Total accruing loans 90 days or more past due
|
|
$
|
—
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
||||
Residential 1-4 family
|
|
$
|
11,592
|
|
|
$
|
14,450
|
|
Commercial real estate
|
|
1,281
|
|
|
1,346
|
|
||
Home equity line of credit
|
|
5,250
|
|
|
4,934
|
|
||
Residential land
|
|
1,555
|
|
|
2,751
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
2,052
|
|
|
14,146
|
|
||
Consumer
|
|
67
|
|
|
10
|
|
||
Total troubled debt restructured loans not included above
|
|
$
|
21,797
|
|
|
$
|
37,637
|
|
|
|
September 30, 2017
|
|
Three months ended September 30, 2017
|
|
Nine months ended September 30, 2017
|
||||||||||||||||||||||
(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
|
|
$
|
9,987
|
|
|
$
|
10,541
|
|
|
$
|
—
|
|
|
$
|
9,650
|
|
|
$
|
70
|
|
|
$
|
9,503
|
|
|
$
|
230
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
121
|
|
|
11
|
|
|||||||
Home equity line of credit
|
|
1,565
|
|
|
1,889
|
|
|
—
|
|
|
1,918
|
|
|
32
|
|
|
2,108
|
|
|
97
|
|
|||||||
Residential land
|
|
1,134
|
|
|
1,425
|
|
|
—
|
|
|
1,209
|
|
|
73
|
|
|
1,080
|
|
|
107
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
2,901
|
|
|
6,257
|
|
|
—
|
|
|
1,808
|
|
|
29
|
|
|
2,888
|
|
|
37
|
|
|||||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
$
|
15,587
|
|
|
$
|
20,112
|
|
|
$
|
—
|
|
|
$
|
14,585
|
|
|
$
|
204
|
|
|
$
|
15,700
|
|
|
$
|
482
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
9,770
|
|
|
$
|
9,972
|
|
|
$
|
1,317
|
|
|
$
|
9,788
|
|
|
$
|
97
|
|
|
$
|
9,963
|
|
|
$
|
333
|
|
Commercial real estate
|
|
1,281
|
|
|
1,281
|
|
|
72
|
|
|
1,284
|
|
|
13
|
|
|
1,292
|
|
|
41
|
|
|||||||
Home equity line of credit
|
|
5,513
|
|
|
5,543
|
|
|
409
|
|
|
5,076
|
|
|
68
|
|
|
4,670
|
|
|
164
|
|
|||||||
Residential land
|
|
1,251
|
|
|
1,251
|
|
|
373
|
|
|
1,251
|
|
|
12
|
|
|
1,620
|
|
|
73
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
2,585
|
|
|
2,595
|
|
|
667
|
|
|
2,482
|
|
|
225
|
|
|
4,104
|
|
|
694
|
|
|||||||
Consumer
|
|
67
|
|
|
67
|
|
|
30
|
|
|
67
|
|
|
1
|
|
|
55
|
|
|
2
|
|
|||||||
|
|
$
|
20,467
|
|
|
$
|
20,709
|
|
|
$
|
2,868
|
|
|
$
|
19,948
|
|
|
$
|
416
|
|
|
$
|
21,704
|
|
|
$
|
1,307
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
19,757
|
|
|
$
|
20,513
|
|
|
$
|
1,317
|
|
|
$
|
19,438
|
|
|
$
|
167
|
|
|
$
|
19,466
|
|
|
$
|
563
|
|
Commercial real estate
|
|
1,281
|
|
|
1,281
|
|
|
72
|
|
|
1,284
|
|
|
13
|
|
|
1,413
|
|
|
52
|
|
|||||||
Home equity line of credit
|
|
7,078
|
|
|
7,432
|
|
|
409
|
|
|
6,994
|
|
|
100
|
|
|
6,778
|
|
|
261
|
|
|||||||
Residential land
|
|
2,385
|
|
|
2,676
|
|
|
373
|
|
|
2,460
|
|
|
85
|
|
|
2,700
|
|
|
180
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
5,486
|
|
|
8,852
|
|
|
667
|
|
|
4,290
|
|
|
254
|
|
|
6,992
|
|
|
731
|
|
|||||||
Consumer
|
|
67
|
|
|
67
|
|
|
30
|
|
|
67
|
|
|
1
|
|
|
55
|
|
|
2
|
|
|||||||
|
|
$
|
36,054
|
|
|
$
|
40,821
|
|
|
$
|
2,868
|
|
|
$
|
34,533
|
|
|
$
|
620
|
|
|
$
|
37,404
|
|
|
$
|
1,789
|
|
|
|
December 31, 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
|
|
$
|
9,571
|
|
|
$
|
10,400
|
|
|
$
|
—
|
|
|
$
|
10,069
|
|
|
$
|
65
|
|
|
$
|
10,378
|
|
|
$
|
268
|
|
Commercial real estate
|
|
223
|
|
|
228
|
|
|
—
|
|
|
1,206
|
|
|
—
|
|
|
1,177
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
1,500
|
|
|
1,900
|
|
|
—
|
|
|
1,220
|
|
|
6
|
|
|
1,035
|
|
|
15
|
|
|||||||
Residential land
|
|
1,218
|
|
|
1,803
|
|
|
—
|
|
|
1,521
|
|
|
16
|
|
|
1,532
|
|
|
47
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
6,299
|
|
|
8,869
|
|
|
—
|
|
|
14,352
|
|
|
141
|
|
|
9,240
|
|
|
154
|
|
|||||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|||||||
|
|
$
|
18,811
|
|
|
$
|
23,200
|
|
|
$
|
—
|
|
|
$
|
28,378
|
|
|
$
|
228
|
|
|
$
|
23,365
|
|
|
$
|
484
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
10,283
|
|
|
$
|
10,486
|
|
|
$
|
1,352
|
|
|
$
|
11,800
|
|
|
$
|
119
|
|
|
$
|
11,933
|
|
|
$
|
356
|
|
Commercial real estate
|
|
1,346
|
|
|
1,346
|
|
|
80
|
|
|
2,444
|
|
|
—
|
|
|
1,939
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
4,658
|
|
|
4,712
|
|
|
215
|
|
|
4,165
|
|
|
36
|
|
|
3,470
|
|
|
91
|
|
|||||||
Residential land
|
|
2,411
|
|
|
2,411
|
|
|
789
|
|
|
2,915
|
|
|
44
|
|
|
3,090
|
|
|
165
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
14,240
|
|
|
14,240
|
|
|
1,641
|
|
|
11,433
|
|
|
65
|
|
|
15,075
|
|
|
275
|
|
|||||||
Consumer
|
|
10
|
|
|
10
|
|
|
6
|
|
|
11
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|||||||
|
|
$
|
32,948
|
|
|
$
|
33,205
|
|
|
$
|
4,083
|
|
|
$
|
32,768
|
|
|
$
|
264
|
|
|
$
|
35,519
|
|
|
$
|
887
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
19,854
|
|
|
$
|
20,886
|
|
|
$
|
1,352
|
|
|
$
|
21,869
|
|
|
$
|
184
|
|
|
$
|
22,311
|
|
|
$
|
624
|
|
Commercial real estate
|
|
1,569
|
|
|
1,574
|
|
|
80
|
|
|
3,650
|
|
|
—
|
|
|
3,116
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
6,158
|
|
|
6,612
|
|
|
215
|
|
|
5,385
|
|
|
42
|
|
|
4,505
|
|
|
106
|
|
|||||||
Residential land
|
|
3,629
|
|
|
4,214
|
|
|
789
|
|
|
4,436
|
|
|
60
|
|
|
4,622
|
|
|
212
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
20,539
|
|
|
23,109
|
|
|
1,641
|
|
|
25,785
|
|
|
206
|
|
|
24,315
|
|
|
429
|
|
|||||||
Consumer
|
|
10
|
|
|
10
|
|
|
6
|
|
|
21
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|||||||
|
|
$
|
51,759
|
|
|
$
|
56,405
|
|
|
$
|
4,083
|
|
|
$
|
61,146
|
|
|
$
|
492
|
|
|
$
|
58,884
|
|
|
$
|
1,371
|
|
*
|
Since loan was classified as impaired.
|
|
|
Three months ended September 30, 2017
|
|
Nine months ended September 30, 2017
|
||||||||||||||||||||||||||
|
|
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
|
|
|
$
|
83
|
|
|
$
|
83
|
|
|
$
|
—
|
|
|
7
|
|
|
$
|
955
|
|
|
$
|
963
|
|
|
$
|
45
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Home equity line of credit
|
|
15
|
|
|
862
|
|
|
862
|
|
|
184
|
|
|
28
|
|
|
1,386
|
|
|
1,372
|
|
|
277
|
|
||||||
Residential land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial
|
|
1
|
|
|
330
|
|
|
330
|
|
|
38
|
|
|
2
|
|
|
672
|
|
|
672
|
|
|
38
|
|
||||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
59
|
|
|
59
|
|
|
27
|
|
||||||
|
|
18
|
|
|
$
|
1,275
|
|
|
$
|
1,275
|
|
|
$
|
222
|
|
|
38
|
|
|
$
|
3,072
|
|
|
$
|
3,066
|
|
|
$
|
387
|
|
|
|
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
|
|
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, 2017
|
|
Nine months ended September 30, 2017
|
||||||||
(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
|
|
$
|
222
|
|
Commercial real estate
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Home equity line of credit
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Residential land
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Commercial construction
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Residential construction
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Commercial
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Consumer
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
|
|
—
|
|
$
|
—
|
|
|
1
|
|
$
|
222
|
|
|
|
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
|
|
(in thousands)
|
|
Gross
carrying amount 1 |
|
Accumulated amortization
1
|
|
Valuation allowance
|
|
Net
carrying amount |
||||||||
September 30, 2017
|
|
$
|
18,463
|
|
|
$
|
(9,393
|
)
|
|
$
|
—
|
|
|
$
|
9,070
|
|
December 31, 2016
|
|
17,271
|
|
|
(7,898
|
)
|
|
—
|
|
|
9,373
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Mortgage servicing rights
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
9,181
|
|
|
$
|
9,016
|
|
|
$
|
9,373
|
|
|
$
|
8,884
|
|
Amount capitalized
|
|
394
|
|
|
824
|
|
|
1,192
|
|
|
1,944
|
|
||||
Amortization
|
|
(505
|
)
|
|
(649
|
)
|
|
(1,495
|
)
|
|
(1,637
|
)
|
||||
Other-than-temporary impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Carrying amount before valuation allowance
|
|
9,070
|
|
|
9,191
|
|
|
9,070
|
|
|
9,191
|
|
||||
Valuation allowance for mortgage servicing rights
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Provision (recovery)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other-than-temporary impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Ending balance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net carrying value of mortgage servicing rights
|
|
$
|
9,070
|
|
|
$
|
9,191
|
|
|
$
|
9,070
|
|
|
$
|
9,191
|
|
(dollars in thousands)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
||
Unpaid principal balance
|
|
$
|
1,212,730
|
|
|
$
|
1,188,380
|
|
Weighted average note rate
|
|
3.94
|
%
|
|
3.96
|
%
|
||
Weighted average discount rate
|
|
10.0
|
%
|
|
9.4
|
%
|
||
Weighted average prepayment speed
|
|
9.2
|
%
|
|
8.5
|
%
|
(dollars in thousands)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
||
Prepayment rate:
|
|
|
|
|
||||
25 basis points adverse rate change
|
|
$
|
(878
|
)
|
|
$
|
(567
|
)
|
50 basis points adverse rate change
|
|
(1,847
|
)
|
|
(1,154
|
)
|
||
Discount rate:
|
|
|
|
|
||||
25 basis points adverse rate change
|
|
(111
|
)
|
|
(128
|
)
|
||
50 basis points adverse rate change
|
|
(220
|
)
|
|
(254
|
)
|
(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, 2017
|
|
$104
|
|
$—
|
|
$104
|
December 31, 2016
|
|
93
|
|
—
|
|
93
|
|
|
Gross amount not offset in the Balance Sheet
|
||||||||||
(in millions)
|
|
Net amount of liabilities presented
in the Balance Sheet
|
|
Financial
instruments
|
|
Cash
collateral
pledged
|
||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|||
Financial institution
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Government entities
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial account holders
|
|
104
|
|
|
165
|
|
|
—
|
|
|||
Total
|
|
$
|
104
|
|
|
$
|
165
|
|
|
$
|
—
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|||
Financial institution
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Government entities
|
|
14
|
|
|
15
|
|
|
—
|
|
|||
Commercial account holders
|
|
79
|
|
|
101
|
|
|
—
|
|
|||
Total
|
|
$
|
93
|
|
|
$
|
116
|
|
|
$
|
—
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
(in thousands)
|
|
Notional amount
|
|
Fair value
|
|
Notional amount
|
|
Fair value
|
||||||||
Interest rate lock commitments
|
|
$
|
385
|
|
|
$
|
7
|
|
|
$
|
25,883
|
|
|
$
|
421
|
|
Forward commitments
|
|
500
|
|
|
(2
|
)
|
|
30,813
|
|
|
(177
|
)
|
Derivative Financial Instruments Not Designated as Hedging Instruments
1
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
(in thousands)
|
|
Asset derivatives
|
|
Liability
derivatives
|
|
Asset derivatives
|
|
Liability
derivatives |
||||||||
Interest rate lock commitments
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
445
|
|
|
$
|
24
|
|
Forward commitments
|
|
—
|
|
|
2
|
|
|
8
|
|
|
185
|
|
||||
|
|
$
|
7
|
|
|
$
|
2
|
|
|
$
|
453
|
|
|
$
|
209
|
|
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)
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
Interest rate lock commitments
|
|
Mortgage banking income
|
|
$
|
(119
|
)
|
|
$
|
48
|
|
|
$
|
(414
|
)
|
|
$
|
459
|
|
Forward commitments
|
|
Mortgage banking income
|
|
(90
|
)
|
|
103
|
|
|
175
|
|
|
(134
|
)
|
||||
|
|
|
|
$
|
(209
|
)
|
|
$
|
151
|
|
|
$
|
(239
|
)
|
|
$
|
325
|
|
|
Refunding Series 2017A Special Purpose Revenue Bonds
|
Refunding Series 2017B Special Purpose Revenue Bonds
|
Aggregate principal amount
|
$125 million
|
$140 million
|
Fixed coupon interest rate
|
3.10%
|
4.00%
|
Maturity date
|
May 1, 2026
|
March 1, 2037
|
Department loaned the proceeds to:
|
|
|
Hawaiian Electric
|
$62 million
|
$100 million
|
Hawaii Electric Light
|
$8 million
|
$20 million
|
Maui Electric
|
$55 million
|
$20 million
|
|
Refunding Series 2007B Special Purpose Revenue Bonds
|
Series 2007A Special Purpose Revenue Bonds
|
Aggregate principal amount
|
$125 million
|
$140 million
|
Fixed coupon interest rate
|
4.60%
|
4.65%
|
Maturity date
|
May 1, 2026
|
March 1, 2037
|
|
HEI Consolidated
|
|
Hawaiian Electric Consolidated
|
||||||||||||||||||||||||
(in thousands)
|
Net unrealized gains (losses) on securities
|
|
Unrealized gains (losses) on derivatives
|
|
Retirement benefit plans
|
|
AOCI
|
|
Unrealized gains (losses) on derivatives
|
|
Retirement benefit plans
|
|
AOCI
|
||||||||||||||
Balance, December 31, 2016
|
$
|
(7,931
|
)
|
|
$
|
(454
|
)
|
|
$
|
(24,744
|
)
|
|
$
|
(33,129
|
)
|
|
$
|
(454
|
)
|
|
$
|
132
|
|
|
$
|
(322
|
)
|
Current period other comprehensive income
|
2,452
|
|
|
454
|
|
|
1,003
|
|
|
3,909
|
|
|
454
|
|
|
67
|
|
|
521
|
|
|||||||
Balance, September 30, 2017
|
$
|
(5,479
|
)
|
|
$
|
—
|
|
|
$
|
(23,741
|
)
|
|
$
|
(29,220
|
)
|
|
$
|
—
|
|
|
$
|
199
|
|
|
$
|
199
|
|
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
|
|
|
|
Amount reclassified from AOCI
|
|
|
||||||||||||||
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
|
Affected line item in the
|
||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Statements of Income / Balance Sheets
|
||||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net realized gains on securities included in net income
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(360
|
)
|
|
Revenues-bank (net gains on sales of securities)
|
Derivatives qualifying as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Window forward contracts
|
|
—
|
|
|
(173
|
)
|
|
454
|
|
|
(173
|
)
|
|
Property, plant and equipment-electric utilities
|
||||
Interest rate contracts (settled in 2011)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
Interest expense
|
||||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost
|
|
3,942
|
|
|
3,641
|
|
|
11,793
|
|
|
10,877
|
|
|
See Note 7 for additional details
|
||||
Impact of D&Os of the PUC included in regulatory assets
|
|
(3,596
|
)
|
|
(3,311
|
)
|
|
(10,790
|
)
|
|
(9,934
|
)
|
|
See Note 7 for additional details
|
||||
Total reclassifications
|
|
$
|
346
|
|
|
$
|
157
|
|
|
$
|
1,457
|
|
|
$
|
464
|
|
|
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives qualifying as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Window forward contracts
|
|
$
|
—
|
|
|
$
|
(173
|
)
|
|
$
|
454
|
|
|
$
|
(173
|
)
|
|
Construction in progress
|
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost
|
|
3,618
|
|
|
3,314
|
|
|
10,857
|
|
|
9,941
|
|
|
See Note 7 for additional details
|
||||
Impact of D&Os of the PUC included in regulatory assets
|
|
(3,596
|
)
|
|
(3,311
|
)
|
|
(10,790
|
)
|
|
(9,934
|
)
|
|
See Note 7 for additional details
|
||||
Total reclassifications
|
|
$
|
22
|
|
|
$
|
(170
|
)
|
|
$
|
521
|
|
|
$
|
(166
|
)
|
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||||||||||||||||||
|
|
Pension benefits
|
|
Other benefits
|
|
Pension benefits
|
|
Other benefits
|
||||||||||||||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Service cost
|
|
$
|
16,271
|
|
|
$
|
15,126
|
|
|
$
|
843
|
|
|
$
|
831
|
|
|
$
|
48,635
|
|
|
$
|
45,430
|
|
|
$
|
2,530
|
|
|
$
|
2,499
|
|
Interest cost
|
|
20,304
|
|
|
20,396
|
|
|
2,363
|
|
|
2,417
|
|
|
60,881
|
|
|
61,154
|
|
|
7,089
|
|
|
7,254
|
|
||||||||
Expected return on plan assets
|
|
(25,689
|
)
|
|
(24,640
|
)
|
|
(3,078
|
)
|
|
(3,064
|
)
|
|
(77,056
|
)
|
|
(73,920
|
)
|
|
(9,248
|
)
|
|
(9,207
|
)
|
||||||||
Amortization of net prior service gain
|
|
(14
|
)
|
|
(15
|
)
|
|
(448
|
)
|
|
(449
|
)
|
|
(41
|
)
|
|
(43
|
)
|
|
(1,345
|
)
|
|
(1,345
|
)
|
||||||||
Amortization of net actuarial loss
|
|
6,638
|
|
|
6,228
|
|
|
283
|
|
|
200
|
|
|
19,858
|
|
|
18,605
|
|
|
848
|
|
|
603
|
|
||||||||
Net periodic pension/benefit cost
|
|
17,510
|
|
|
17,095
|
|
|
(37
|
)
|
|
(65
|
)
|
|
52,277
|
|
|
51,226
|
|
|
(126
|
)
|
|
(196
|
)
|
||||||||
Impact of PUC D&Os
|
|
(4,534
|
)
|
|
(4,653
|
)
|
|
346
|
|
|
336
|
|
|
(14,557
|
)
|
|
(13,464
|
)
|
|
1,019
|
|
|
1,008
|
|
||||||||
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
|
|
$
|
12,976
|
|
|
$
|
12,442
|
|
|
$
|
309
|
|
|
$
|
271
|
|
|
$
|
37,720
|
|
|
$
|
37,762
|
|
|
$
|
893
|
|
|
$
|
812
|
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Service cost
|
|
$
|
15,764
|
|
|
$
|
14,699
|
|
|
$
|
839
|
|
|
$
|
821
|
|
|
$
|
47,294
|
|
|
$
|
44,097
|
|
|
$
|
2,515
|
|
|
$
|
2,463
|
|
Interest cost
|
|
18,659
|
|
|
18,702
|
|
|
2,279
|
|
|
2,334
|
|
|
55,974
|
|
|
56,106
|
|
|
6,837
|
|
|
7,003
|
|
||||||||
Expected return on plan assets
|
|
(23,973
|
)
|
|
(22,908
|
)
|
|
(3,037
|
)
|
|
(3,023
|
)
|
|
(71,919
|
)
|
|
(68,725
|
)
|
|
(9,110
|
)
|
|
(9,072
|
)
|
||||||||
Amortization of net prior service loss (gain)
|
|
2
|
|
|
3
|
|
|
(451
|
)
|
|
(451
|
)
|
|
6
|
|
|
10
|
|
|
(1,353
|
)
|
|
(1,353
|
)
|
||||||||
Amortization of net actuarial loss
|
|
6,098
|
|
|
5,674
|
|
|
275
|
|
|
198
|
|
|
18,294
|
|
|
17,020
|
|
|
826
|
|
|
595
|
|
||||||||
Net periodic pension/benefit cost
|
|
16,550
|
|
|
16,170
|
|
|
(95
|
)
|
|
(121
|
)
|
|
49,649
|
|
|
48,508
|
|
|
(285
|
)
|
|
(364
|
)
|
||||||||
Impact of PUC D&Os
|
|
(4,534
|
)
|
|
(4,653
|
)
|
|
346
|
|
|
336
|
|
|
(14,557
|
)
|
|
(13,464
|
)
|
|
1,019
|
|
|
1,008
|
|
||||||||
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
|
|
$
|
12,016
|
|
|
$
|
11,517
|
|
|
$
|
251
|
|
|
$
|
215
|
|
|
$
|
35,092
|
|
|
$
|
35,044
|
|
|
$
|
734
|
|
|
$
|
644
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
||||||||
Share-based compensation expense
1
|
|
$
|
1.1
|
|
|
$
|
1.6
|
|
|
$
|
4.4
|
|
|
$
|
3.6
|
|
Income tax benefit
|
|
0.4
|
|
|
0.5
|
|
|
1.5
|
|
|
1.2
|
|
||||
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
||||||||
Share-based compensation expense
1
|
|
0.4
|
|
|
0.5
|
|
|
1.6
|
|
|
1.0
|
|
||||
Income tax benefit
|
|
0.2
|
|
|
0.2
|
|
|
0.6
|
|
|
0.4
|
|
1
|
For the three months and nine months ended September 30, 2017 and 2016, the Company has not capitalized any share-based compensation.
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
($ in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Shares granted
|
|
—
|
|
|
19,846
|
|
|
35,770
|
|
|
19,846
|
|
||||
Fair value
|
|
$
|
—
|
|
|
$
|
0.6
|
|
|
$
|
1.2
|
|
|
$
|
0.6
|
|
Income tax benefit
|
|
—
|
|
|
0.2
|
|
|
0.5
|
|
|
0.2
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||||||
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||||||||||
Outstanding, beginning of period
|
206,483
|
|
|
$
|
31.50
|
|
|
225,752
|
|
|
$
|
29.59
|
|
|
220,683
|
|
|
$
|
29.57
|
|
|
210,634
|
|
|
$
|
28.82
|
|
||||
Granted
|
—
|
|
|
—
|
|
|
766
|
|
|
30.65
|
|
|
97,873
|
|
|
33.47
|
|
|
95,048
|
|
|
29.91
|
|
||||||||
Vested
|
(687
|
)
|
|
24.48
|
|
|
(4,419
|
)
|
|
27.26
|
|
|
(89,681
|
)
|
|
28.84
|
|
|
(83,583
|
)
|
|
27.88
|
|
||||||||
Forfeited
|
—
|
|
|
—
|
|
|
(2,352
|
)
|
|
29.69
|
|
|
(23,079
|
)
|
|
31.50
|
|
|
(2,352
|
)
|
|
29.69
|
|
||||||||
Outstanding, end of period
|
205,796
|
|
|
$
|
31.53
|
|
|
219,747
|
|
|
$
|
29.64
|
|
|
205,796
|
|
|
$
|
31.53
|
|
|
219,747
|
|
|
$
|
29.64
|
|
||||
Total weighted-average grant-date fair value of shares granted ($ millions)
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
3.3
|
|
|
|
|
$
|
2.8
|
|
|
|
(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
|
||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||||||
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||||||||||
Outstanding, beginning of period
|
33,770
|
|
|
$
|
39.51
|
|
|
83,947
|
|
|
$
|
22.95
|
|
|
83,106
|
|
|
$
|
22.95
|
|
|
162,500
|
|
|
$
|
27.66
|
|
||||
Granted (target level)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37,204
|
|
|
39.51
|
|
|
—
|
|
|
—
|
|
||||||||
Vested (issued or unissued and cancelled)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(83,106
|
)
|
|
22.95
|
|
|
(78,553
|
)
|
|
32.69
|
|
||||||||
Forfeited
|
—
|
|
|
—
|
|
|
(175
|
)
|
|
22.95
|
|
|
(3,434
|
)
|
|
39.51
|
|
|
(175
|
)
|
|
22.95
|
|
||||||||
Outstanding, end of period
|
33,770
|
|
|
$
|
39.51
|
|
|
83,772
|
|
|
$
|
22.95
|
|
|
33,770
|
|
|
$
|
39.51
|
|
|
83,772
|
|
|
$
|
22.95
|
|
||||
Total weighted-average grant-date fair value of shares granted ($ millions)
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
1.5
|
|
|
|
|
$
|
—
|
|
|
|
(1)
|
Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.
|
|
|
2017
|
|
Risk-free interest rate
|
|
1.46
|
%
|
Expected life in years
|
|
3
|
|
Expected volatility
|
|
20.1
|
%
|
Range of expected volatility for Peer Group
|
|
15.4% to 26.0%
|
|
Grant date fair value (per share)
|
|
$39.51
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||||||
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||||||||||
Outstanding, beginning of period
|
135,078
|
|
|
$
|
33.47
|
|
|
113,550
|
|
|
$
|
25.18
|
|
|
109,816
|
|
|
$
|
25.18
|
|
|
222,647
|
|
|
$
|
26.02
|
|
||||
Granted (target level)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
148,818
|
|
|
33.47
|
|
|
—
|
|
|
—
|
|
||||||||
Vested (issued)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(109,816
|
)
|
|
25.18
|
|
|
(109,097
|
)
|
|
26.89
|
|
||||||||
Forfeited
|
—
|
|
|
—
|
|
|
(699
|
)
|
|
25.19
|
|
|
(13,740
|
)
|
|
33.48
|
|
|
(699
|
)
|
|
25.19
|
|
||||||||
Outstanding, end of period
|
135,078
|
|
|
$
|
33.47
|
|
|
112,851
|
|
|
$
|
25.18
|
|
|
135,078
|
|
|
$
|
33.47
|
|
|
112,851
|
|
|
$
|
25.18
|
|
||||
Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions)
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
5.0
|
|
|
|
|
$
|
—
|
|
|
|
(1)
|
Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.
|
Nine months ended September 30
|
|
2017
|
|
2016
|
||||
(in millions)
|
|
|
|
|
||||
Supplemental disclosures of cash flow information
|
|
|
|
|
|
|
||
HEI consolidated
|
|
|
|
|
||||
Interest paid to non-affiliates
|
|
$
|
62
|
|
|
$
|
61
|
|
Income taxes paid (including refundable credits)
|
|
32
|
|
|
19
|
|
||
Income taxes refunded (including refundable credits)
|
|
—
|
|
|
45
|
|
||
Hawaiian Electric consolidated
|
|
|
|
|
||||
Interest paid to non-affiliates
|
|
45
|
|
|
43
|
|
||
Income taxes paid (including refundable credits)
|
|
9
|
|
|
—
|
|
||
Income taxes refunded (including refundable credits)
|
|
—
|
|
|
20
|
|
||
Supplemental disclosures of noncash activities
|
|
|
|
|
|
|
||
HEI consolidated
|
|
|
|
|
||||
Property, plant and equipment
|
|
|
|
|
||||
Estimated fair value of noncash contributions in aid of construction (investing)
|
|
3
|
|
|
12
|
|
||
Unpaid invoices and accruals for capital expenditures (investing)
|
|
|
|
|
||||
Change during the period
|
|
31
|
|
|
(6
|
)
|
||
Balance, end of period
|
|
116
|
|
|
64
|
|
||
Common stock dividends reinvested in HEI common stock (financing)
1
|
|
—
|
|
|
17
|
|
||
Loans transferred from held for investment to held for sale (investing)
|
|
41
|
|
|
14
|
|
||
Common stock issued (gross) for director and executive/management compensation (financing)
2
|
|
11
|
|
|
7
|
|
||
Obligations to fund low income housing investments (investing)
|
|
10
|
|
|
—
|
|
||
Hawaiian Electric consolidated
|
|
|
|
|
||||
Electric utility property, plant and equipment
|
|
|
|
|
||||
Estimated fair value of noncash contributions in aid of construction (investing)
|
|
3
|
|
|
12
|
|
||
Unpaid invoices and accruals for capital expenditures (investing)
|
|
|
|
|
||||
Change during the period
|
|
29
|
|
|
(7
|
)
|
||
Balance, end of period
|
|
113
|
|
|
63
|
|
|
|
|
|
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, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale investment securities
|
|
$
|
1,320,110
|
|
|
$
|
—
|
|
|
$
|
1,304,683
|
|
|
$
|
15,427
|
|
|
$
|
1,320,110
|
|
Stock in Federal Home Loan Bank
|
|
9,706
|
|
|
—
|
|
|
9,706
|
|
|
—
|
|
|
9,706
|
|
|||||
Loans receivable, net
|
|
4,638,962
|
|
|
13,260
|
|
|
2,468
|
|
|
4,791,209
|
|
|
4,806,937
|
|
|||||
Mortgage servicing rights
|
|
9,070
|
|
|
—
|
|
|
—
|
|
|
12,091
|
|
|
12,091
|
|
|||||
Bank-owned life insurance
|
|
147,391
|
|
|
—
|
|
|
147,391
|
|
|
—
|
|
|
147,391
|
|
|||||
Derivative assets
|
|
8,399
|
|
|
—
|
|
|
591
|
|
|
—
|
|
|
591
|
|
|||||
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative assets-window forward contracts
|
|
8,014
|
|
|
—
|
|
|
584
|
|
|
—
|
|
|
584
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
|
|
5,752,326
|
|
|
—
|
|
|
5,748,858
|
|
|
—
|
|
|
5,748,858
|
|
|||||
Short-term borrowings—other than bank
|
|
24,498
|
|
|
—
|
|
|
24,498
|
|
|
—
|
|
|
24,498
|
|
|||||
Other bank borrowings
|
|
153,552
|
|
|
—
|
|
|
153,717
|
|
|
—
|
|
|
153,717
|
|
|||||
Long-term debt, net—other than bank
|
|
1,618,446
|
|
|
—
|
|
|
1,747,972
|
|
|
—
|
|
|
1,747,972
|
|
|||||
Derivative liabilities
|
|
500
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
|
6,000
|
|
|
—
|
|
|
6,000
|
|
|
—
|
|
|
6,000
|
|
|||||
Long-term debt, net
|
|
1,318,623
|
|
|
—
|
|
|
1,441,855
|
|
|
—
|
|
|
1,441,855
|
|
|||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market funds
|
|
$
|
13,085
|
|
|
$
|
—
|
|
|
$
|
13,085
|
|
|
$
|
—
|
|
|
$
|
13,085
|
|
Available-for-sale investment securities
|
|
1,105,182
|
|
|
—
|
|
|
1,089,755
|
|
|
15,427
|
|
|
1,105,182
|
|
|||||
Stock in Federal Home Loan Bank
|
|
11,218
|
|
|
—
|
|
|
11,218
|
|
|
—
|
|
|
11,218
|
|
|||||
Loans receivable, net
|
|
4,701,977
|
|
|
—
|
|
|
13,333
|
|
|
4,839,493
|
|
|
4,852,826
|
|
|||||
Mortgage servicing rights
|
|
9,373
|
|
|
—
|
|
|
—
|
|
|
13,216
|
|
|
13,216
|
|
|||||
Bank-owned life insurance
|
|
143,197
|
|
|
—
|
|
|
143,197
|
|
|
—
|
|
|
143,197
|
|
|||||
Derivative assets
|
|
23,578
|
|
|
—
|
|
|
453
|
|
|
—
|
|
|
453
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
|
|
5,548,929
|
|
|
—
|
|
|
5,546,644
|
|
|
—
|
|
|
5,546,644
|
|
|||||
Other bank borrowings
|
|
192,618
|
|
|
—
|
|
|
193,991
|
|
|
—
|
|
|
193,991
|
|
|||||
Long-term debt, net—other than bank
|
|
1,619,019
|
|
|
—
|
|
|
1,704,717
|
|
|
—
|
|
|
1,704,717
|
|
|||||
Derivative liabilities
|
|
53,852
|
|
|
129
|
|
|
823
|
|
|
—
|
|
|
952
|
|
|||||
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt, net
|
|
1,319,260
|
|
|
—
|
|
|
1,399,490
|
|
|
—
|
|
|
1,399,490
|
|
|||||
Derivative liabilities-window forward contracts
|
|
20,734
|
|
|
—
|
|
|
743
|
|
|
—
|
|
|
743
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
|
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)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,085
|
|
|
$
|
—
|
|
Available-for-sale investment securities (bank segment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Mortgage-related securities-FNMA, FHLMC and GNMA
|
|
$
|
—
|
|
|
$
|
1,122,565
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
897,474
|
|
|
$
|
—
|
|
U.S. Treasury and federal agency obligations
|
|
—
|
|
|
182,118
|
|
|
—
|
|
|
—
|
|
|
192,281
|
|
|
—
|
|
||||||
Mortgage revenue bond
|
|
—
|
|
|
—
|
|
|
15,427
|
|
|
—
|
|
|
—
|
|
|
15,427
|
|
||||||
|
|
$
|
—
|
|
|
$
|
1,304,683
|
|
|
$
|
15,427
|
|
|
$
|
—
|
|
|
$
|
1,089,755
|
|
|
$
|
15,427
|
|
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate lock commitments (bank segment)
1
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
445
|
|
|
$
|
—
|
|
Forward commitments (bank segment)
1
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||||
Window forward contracts (electric utility segment)
2
|
|
—
|
|
|
584
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
$
|
—
|
|
|
$
|
591
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
453
|
|
|
$
|
—
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate lock commitments (bank segment)
1
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24
|
|
|
$
|
—
|
|
Forward commitments (bank segment)
1
|
|
2
|
|
|
—
|
|
|
—
|
|
|
129
|
|
|
56
|
|
|
—
|
|
||||||
Window forward contracts (electric utility segment)
2
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
743
|
|
|
—
|
|
||||||
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
129
|
|
|
$
|
823
|
|
|
$
|
—
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||
Mortgage revenue bond
|
|
2017
|
2016
|
|
2017
|
2016
|
||||||||
(in thousands)
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
15,427
|
|
$
|
—
|
|
|
$
|
15,427
|
|
$
|
—
|
|
Principal payments received
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Purchases
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Unrealized gain (loss) included in other comprehensive income
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Ending balance
|
|
$
|
15,427
|
|
$
|
—
|
|
|
$
|
15,427
|
|
$
|
—
|
|
|
|
|
|
Fair value measurements
|
||||||||||||
(in thousands)
|
|
Balance
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
$
|
2,881
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,881
|
|
Real estate acquired in settlement of loans
|
|
93
|
|
|
—
|
|
|
—
|
|
|
93
|
|
||||
December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
2,767
|
|
|
—
|
|
|
—
|
|
|
2,767
|
|
||||
Real estate acquired in settlement of loans
|
|
1,189
|
|
|
—
|
|
|
—
|
|
|
1,189
|
|
|
|
|
|
|
|
|
|
Significant unobservable
input value
(1)
|
||||
($ in thousands)
|
|
Fair value
|
|
Valuation technique
|
|
Significant unobservable input
|
|
Range
|
|
Weighted
Average
|
||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||
Residential loans
|
|
$
|
731
|
|
|
Fair value of collateral
|
|
Appraised value less 7% selling cost
|
|
50-91%
|
|
69%
|
Commercial loans
|
|
2,150
|
|
|
Fair value of collateral
|
|
Appraised value
|
|
72-76%
|
|
76%
|
|
Total loans
|
|
$
|
2,881
|
|
|
|
|
|
|
|
|
|
Real estate acquired in settlement of loans
|
|
$
|
93
|
|
|
Sales price
|
|
Sales price less 7% selling cost
|
|
|
|
N/A (2)
|
|
|
|
|
|
|
|
|
|
|
|
||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
||
Residential loans
|
|
$
|
2,468
|
|
|
Sales price
|
|
Sales price
|
|
95-100%
|
|
97%
|
Residential loans
|
|
287
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling cost
|
|
42-65%
|
|
61%
|
|
Home equity lines of credit
|
|
12
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling cost
|
|
|
|
N/A (2)
|
|
Total loans
|
|
$
|
2,767
|
|
|
|
|
|
|
|
|
|
Real estate acquired in settlement of loans
|
|
$
|
1,189
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling cost
|
|
100%
|
|
100%
|
(in thousands, except per
|
|
Three months ended September 30
|
|
%
|
|
|
|||||||
share amounts)
|
|
2017
|
|
2016
|
|
change
|
|
Primary reason(s)*
|
|||||
Revenues
|
|
$
|
673,185
|
|
|
$
|
646,055
|
|
|
4
|
|
|
Increases for the electric utility and bank segments
|
Operating income
|
|
109,545
|
|
|
105,442
|
|
|
4
|
|
|
Increase for the bank segment and lower losses for the “other” segment, partly offset by a decrease at the electric utility segment
|
||
Merger termination fee
|
|
—
|
|
|
90,000
|
|
|
(100
|
)
|
|
See Note 12 of the Condensed Consolidated Financial Statements
|
||
Net income for common stock
|
|
60,073
|
|
|
127,142
|
|
|
(53
|
)
|
|
Merger termination fee at corporate in 2016 (in the “other” segment), partly offset by higher bank net income in 2017
|
||
Basic earnings per common share
|
|
$
|
0.55
|
|
|
$
|
1.17
|
|
|
(53
|
)
|
|
Lower net income
|
Weighted-average number of common shares outstanding
|
|
108,786
|
|
|
108,268
|
|
|
—
|
|
|
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)
|
|
2017
|
|
2016
|
|
change
|
|
Primary reason(s)*
|
|||||
Revenues
|
|
$
|
1,897,028
|
|
|
$
|
1,763,259
|
|
|
8
|
|
|
Increases for the electric utility and bank segments
|
Operating income
|
|
253,303
|
|
|
259,748
|
|
|
(2
|
)
|
|
Decrease for the electric utility segment, partly offset by an increase at the bank segment and lower losses for the “other” segment
|
||
Merger termination fee
|
|
—
|
|
|
90,000
|
|
|
(100
|
)
|
|
See Note 12 of the Condensed Consolidated Financial Statements
|
||
Net income for common stock
|
|
132,927
|
|
|
203,622
|
|
|
(35
|
)
|
|
Merger termination fee at corporate in 2016 (in the “other” segment) and lower net income at the electric utility segment, partly offset by higher net income at the bank segment
|
||
Basic earnings per common share
|
|
$
|
1.22
|
|
|
$
|
1.89
|
|
|
(35
|
)
|
|
Lower net income
|
Weighted-average number of common shares outstanding
|
|
108,737
|
|
|
107,951
|
|
|
1
|
|
|
Issuances of shares under the HEI Dividend Reinvestment and Stock Purchase Plan and other plans
|
*
|
Also, see segment discussions which follow.
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
|
|
||||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Primary reason(s)
|
||||||||
Revenues
|
|
$
|
127
|
|
|
$
|
94
|
|
|
$
|
299
|
|
|
$
|
262
|
|
|
|
Operating loss
|
|
(4,295
|
)
|
|
(7,097
|
)
|
|
(13,478
|
)
|
|
(18,621
|
)
|
|
Third quarter and first nine months of 2016 merger and spin-off-related expenses (see below) and lower other administrative and general expenses in the third quarter and first nine months of 2017
|
||||
Merger termination fee
|
|
—
|
|
|
90,000
|
|
|
—
|
|
|
90,000
|
|
|
See Note 12 of the Condensed Consolidated Financial Statements
|
||||
Net income (loss)
|
|
(5,006
|
)
|
|
65,064
|
|
|
(11,807
|
)
|
|
54,362
|
|
|
Third quarter of 2016 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 and tax benefits recognized for the Domestic Production Activities Deduction in 2016 (see Note 9 of the Condensed Consolidated Financial Statements)
|
(dollars in millions)
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
Short-term borrowings—other than bank
|
|
$
|
25
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Long-term debt, net—other than bank
|
|
1,618
|
|
|
43
|
|
|
1,619
|
|
|
43
|
|
||
Preferred stock of subsidiaries
|
|
34
|
|
|
1
|
|
|
34
|
|
|
1
|
|
||
Common stock equity
|
|
2,103
|
|
|
56
|
|
|
2,067
|
|
|
56
|
|
||
|
|
$
|
3,780
|
|
|
100
|
%
|
|
$
|
3,720
|
|
|
100
|
%
|
|
|
Average balance
|
|
Balance
|
||||||||
(in millions)
|
|
Nine months ended September 30, 2017
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||
Short-term borrowings
1
|
|
|
|
|
|
|
|
|
|
|||
Commercial paper
|
|
$
|
3
|
|
|
$
|
19
|
|
|
$
|
—
|
|
Line of credit draws
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Undrawn capacity under HEI’s line of credit facility
|
|
|
|
150
|
|
|
150
|
|
Three months ended September 30
|
|
Increase
|
|
|
||||||||||||
2017
|
|
2016
|
|
(decrease)
|
|
(dollars in millions, except per barrel amounts)
|
||||||||||
$
|
599
|
|
|
$
|
572
|
|
|
$
|
27
|
|
|
|
|
Revenues.
Net increase largely due to:
|
||
|
|
|
|
|
|
$
|
25
|
|
|
higher fuel oil prices
1
|
||||||
|
|
|
|
|
|
5
|
|
|
higher RAM revenues
|
|||||||
|
|
|
|
|
|
2
|
|
|
higher purchased power energy costs
2
|
|||||||
|
|
|
|
|
|
(5
|
)
|
|
lower KWH generated
|
|||||||
146
|
|
|
129
|
|
|
17
|
|
|
|
|
Fuel oil expense.
Increase due to higher fuel oil prices, partially offset by lower KWH generated
|
|||||
160
|
|
|
158
|
|
|
2
|
|
|
|
|
Purchased power expense.
Increase due to higher fuel oil prices
|
|||||
100
|
|
|
95
|
|
|
5
|
|
|
|
|
Operation and maintenance expenses
. Net increase due to:
|
|||||
|
|
|
|
|
|
6
|
|
|
higher overhaul costs due to more overhauls being performed in 2017
|
|||||||
|
|
|
|
|
|
2
|
|
|
ERP project costs commencing in 2017
|
|||||||
|
|
|
|
|
|
(1
|
)
|
|
lower production operating and maintenance cost
|
|||||||
|
|
|
|
|
|
(1
|
)
|
|
PSIP consulting costs incurred in 2016
|
|||||||
105
|
|
|
101
|
|
|
4
|
|
|
|
|
Other expenses.
Increase due to higher revenue taxes from higher revenue, coupled with higher depreciation expense for plant investments in 2016
|
|||||
87
|
|
|
90
|
|
|
(3
|
)
|
|
|
|
Operating income.
Decrease due to higher O&M and other expenses
|
|||||
47
|
|
|
47
|
|
|
—
|
|
|
|
|
Net income for common stock.
Lower operating income, offset by higher AFUDC in 2017 due to larger capital projects, primarily Schofield generating station
|
|||||
|
|
|
|
|
|
|
|
|
||||||||
2,340
|
|
|
2,372
|
|
|
(32
|
)
|
|
|
|
Kilowatthour sales (millions)
4
|
|||||
$
|
66.73
|
|
|
$
|
57.72
|
|
|
$
|
9.01
|
|
|
|
|
Average fuel oil cost per barrel
1
|
Nine months ended September 30
|
|
Increase
|
|
|
||||||||||||
2017
|
|
2016
|
|
(decrease)
|
|
(dollars in millions, except per barrel amounts)
|
||||||||||
$
|
1,674
|
|
|
$
|
1,550
|
|
|
$
|
124
|
|
|
|
|
Revenues.
Net increase largely due to:
|
||
|
|
|
|
|
|
$
|
114
|
|
|
higher fuel oil prices
1
|
||||||
|
|
|
|
|
|
35
|
|
|
higher purchased power energy costs
2
|
|||||||
|
|
|
|
|
|
(20
|
)
|
|
lower RAM revenues due to expiration of 2013 settlement agreement that allowed the accrual of RAM revenues on January 1 (vs. June 1) for years 2014 to 2016 at Hawaiian Electric
|
|||||||
|
|
|
|
|
|
(7
|
)
|
|
lower KWH generated
|
|||||||
432
|
|
|
334
|
|
|
98
|
|
|
|
|
Fuel oil expense.
Increase due to higher fuel oil prices, partially offset by lower KWH generated
|
|||||
441
|
|
|
413
|
|
|
28
|
|
|
|
|
Purchased power expense.
Increase due to higher fuel oil prices
|
|||||
307
|
|
|
298
|
|
|
9
|
|
|
|
|
Operation and maintenance expenses
. Net increase due to:
|
|||||
|
|
|
|
|
|
6
|
|
|
higher overhaul costs due to more overhauls being performed in 2017
|
|||||||
|
|
|
|
|
|
4
|
|
|
ERP project costs commencing in 2017
|
|||||||
|
|
|
|
|
|
2
|
|
|
higher transmission and distribution operating and maintenance costs
|
|||||||
|
|
|
|
|
|
1
|
|
|
Grid modernization consultant costs
|
|||||||
|
|
|
|
|
|
1
|
|
|
write off of portion of deferred Geothermal RFP costs
|
|||||||
|
|
|
|
|
|
1
|
|
|
additional reserves for environmental costs in 2017
3
|
|||||||
|
|
|
|
|
|
(4
|
)
|
|
PSIP consulting costs incurred in 2016
|
|||||||
|
|
|
|
|
|
(3
|
)
|
|
LNG consulting costs incurred in 2016 to negotiate an LNG contract that was subsequently terminated following HEI/NextEra merger termination
|
|||||||
304
|
|
|
289
|
|
|
15
|
|
|
|
|
Other expenses.
Increase due to higher revenue taxes from higher revenue, coupled with higher depreciation expense for plant investments in 2016
|
|||||
191
|
|
|
216
|
|
|
(25
|
)
|
|
|
|
Operating income.
Decrease due to lower RAM revenues and higher O&M and other expenses
|
|||||
95
|
|
|
108
|
|
|
(13
|
)
|
|
|
|
Net income for common stock.
Decrease due to lower operating income, partially offset by resulting lower income taxes
|
|||||
|
|
|
|
|
|
|
|
|
||||||||
6,528
|
|
|
6,613
|
|
|
(85
|
)
|
|
|
|
Kilowatthour sales (millions)
4
|
|||||
$
|
67.42
|
|
|
$
|
52.06
|
|
|
$
|
15.36
|
|
|
|
|
Average fuel oil cost per barrel
1
|
||
461,408
|
|
|
459,590
|
|
|
1,818
|
|
|
|
|
Customer accounts (end of period)
|
1
|
The rate schedules of the electric utilities currently contain energy cost adjustment clauses (ECACs) through which changes in fuel oil prices and certain components of purchased energy costs are passed on to customers.
|
2
|
The rate schedules of the electric utilities currently contain purchase power adjustment clauses (PPACs) through which changes in purchase power expenses (except purchased energy costs) are passed on to customers.
|
3
|
Increase reserve for additional costs for investigation of PCB contamination onshore and offshore of Waiau Power Plant
|
4
|
KWH sales were lower when compared to the same quarter in the prior year due largely to continued energy efficiency and conservation efforts by customers and increasing levels of private customer-sited renewable generation.
|
%
|
|
Rate-making Return on rate base (RORB)*
|
|
ROACE**
|
|
Rate-making ROACE***
|
|||||||||||||||||||||
Twelve months ended September 30, 2017
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|||||||||
Utility returns
|
|
6.77
|
|
|
6.71
|
|
|
6.83
|
|
|
7.35
|
|
|
6.54
|
|
|
6.99
|
|
|
7.99
|
|
|
7.54
|
|
|
7.96
|
|
PUC-allowed returns
|
|
8.11
|
|
|
7.80
|
|
|
7.34
|
|
|
10.00
|
|
|
9.50
|
|
|
9.00
|
|
|
10.00
|
|
|
9.50
|
|
|
9.00
|
|
Difference
|
|
(1.34
|
)
|
|
(1.09
|
)
|
|
(0.51
|
)
|
|
(2.65
|
)
|
|
(2.96
|
)
|
|
(2.01
|
)
|
|
(2.01
|
)
|
|
(1.96
|
)
|
|
(1.04
|
)
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Request
|
|
6/27/14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Request
|
|
12/16/16
|
|
$
|
106.4
|
|
|
6.9
|
|
|
10.60
|
|
|
8.28
|
|
|
$
|
2,002
|
|
|
57.36
|
|
|
|
Hawaii Electric Light
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Request
|
|
9/19/16
|
|
$
|
19.3
|
|
|
6.5
|
|
|
10.60
|
|
|
8.44
|
|
|
$
|
479
|
|
|
57.12
|
|
|
Yes
|
Interim increase
|
|
8/31/17
|
|
9.9
|
|
|
3.4
|
|
|
9.50
|
|
|
7.80
|
|
|
482
|
|
|
56.69
|
|
|
|
||
Maui Electric
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Request
|
|
12/30/14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Request
|
|
10/12/17
|
|
$
|
30.1
|
|
|
9.3
|
|
|
10.60
|
|
|
8.05
|
|
|
$
|
473
|
|
|
56.94
|
|
|
|
•
|
In July 2015, the PUC approved the PPA for the 27.6 MW Waianae Solar project that was developed by Eurus Energy America. The project achieved commercial operations in January 2017 and is now 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 2, LLC and SSA Solar of HI 3, LLC, respectively), each for a 2.87-MW solar facility. In February 2016, the PUC approved both PPAs, subject to certain conditions and modifications. The guaranteed commercial operations date for the facilities was December 31, 2016, however both projects are experiencing delays and are now expected to be completed by the end of the fourth quarter in 2017.
|
•
|
In December 2014, the PUC approved a PPA for Renewable As-Available Energy dated October 3, 2013 between Hawaiian Electric and Na Pua Makani Power Partners, LLC (NPM) for a proposed 24-MW wind farm on Oahu. In September 2016, Hawaiian Electric filed an Amended and Restated PPA, dated August 12, 2016, which reflects the completion of an interconnection requirements study. In October 2017, the PUC approved the construction of an
|
•
|
Hawaiian Electric had PPAs to purchase solar energy with three affiliates of SunEdison. In February 2016, as a result of the project entities missing contract milestones, Hawaiian Electric terminated the original PPAs for the three projects. SunEdison filed Chapter 11 bankruptcy proceedings and during those proceedings, the three SunEdison affiliates were acquired by an affiliate of NRG Energy, Inc. (NRG). Hawaiian Electric then negotiated with NRG and its newly acquired affiliates and has entered into amended and restated PPAs for solar energy on Oahu with Waipio PV, LLC for 45.9 MW, Lanikuhana Solar, LLC for 14.7 MW and Kawailoa Solar, LLC for 49.0 MW. On July 27, 2017, the PUC approved the three NRG PPAs, subject to modifications and conditions. The three projects are expected to be in service by the end of 2019.
|
•
|
As of
September 30, 2017
, there were approximately 330 MW, 77 MW and 88 MW of installed distributed renewable energy technologies (mainly PV) at Hawaiian Electric, Hawaii Electric Light and Maui Electric, respectively, for tariff-based private customer generation programs, namely NEM, Customer Grid Supply and Customer Self Supply. As of
September 30, 2017
, an estimated 27% of single family homes on the islands of Oahu, Hawaii, and Maui have installed private rooftop solar systems, and an estimated 29% of single family homes have installed, or have been approved to install, private rooftop solar systems. As of
September 30, 2017
, approximately 16% of the Utilities' total customers have solar systems.
|
•
|
The Utilities began accepting energy from feed-in tariff projects in 2011. As of
September 30, 2017
, there were 30 MW, 3 MW and 5 MW of installed feed-in tariff capacity from renewable energy technologies at Hawaiian Electric, Hawaii Electric Light and Maui Electric, respectively.
|
•
|
In September 2015, the PUC approved Hawaiian Electric’s 2-year biodiesel supply contract with Pacific Biodiesel Technologies, LLC (PBT) to supply 2 million to 3 million gallons of biodiesel at Campbell Industrial Park combustion turbine No. 1 (CIP CT-1) and the Honolulu International Airport Emergency Power Facility beginning in November 2015. The PBT contract is set to expire on November 2, 2018. PBT also has a spot buy contract with Hawaiian Electric to purchase additional quantities of biodiesel at or below the price of diesel. Some purchases of “at parity” biodiesel have been made under the spot purchase contract, which was recently extended through June 2018. REG Marketing & Logistics Group, LLC has a contingency supply contract with Hawaiian Electric to also supply biodiesel to CIP CT-1 in the event PBT is not able to supply necessary quantities. This contingency contract has been extended to November 2018, and will continue with no volume purchase requirements.
|
•
|
On April 28, 2017 Hawaiian Electric issued a Biofuel Supply Request for Proposal for 3.1 million gallons of biofuel per year for three years, to commence as early as November 2018 to be used as fuel for power generation at Hawaiian Electric’s Schofield Generating Station, the Honolulu International Airport Emergency Power Facility and any other generating unit on Oahu, as necessary. Hawaiian Electric is in negotiations with a bidder.
|
•
|
In response to requests filed by the utilities, on October 6, 2017, the PUC opened a docket to receive filings, review approval requests, and resolve disputes, if necessary, related to the Utilities' plan to proceed with a competitive bidding process of dispatchable firm renewable generation on the island of Maui and variable renewable generation on the islands of Oahu, Hawaii, Maui, Molokai, and Lanai. The PUC also indicated that it will appoint an independent observer to monitor the competitive bidding process. On October 23, 2017, the Utilities filed draft requests for proposals for 220 megawatts (MW) of renewable generation on Oahu, 50 MW of renewable generation on Hawaii Island, and 100 MW of renewable generation on Maui, including 40 MW of firm renewable generation (all resources to be in service by the end of 2022). With this filing, the Utilities also filed proposed model power purchase agreements and timelines for each proposed procurement. Maui Electric proposed to suspend its request to issue variable renewable dispatchable generation RFPs for Molokai and Lanai as Maui Electric is already in discussions on such islands regarding renewable generation.
|
•
|
On January 5, 2017, Hawaiian Electric issued an Onshore Wind Expression of Interest requesting expressions of interest from independent power producers that are capable of developing utility scale onshore wind projects that are eligible to capture the federal Investment Tax Credit for Large Wind on the island of Oahu. Responses have been accepted and Hawaiian Electric is in non-binding confidential discussions regarding such responses.
|
•
|
On December 12, 2016, the Utilities issued a request for information asking interested landowners to provide information about properties available for utility-scale renewable energy projects or for growing biofuel feedstock on
|
(dollars in millions)
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
Short-term borrowings
|
|
$
|
6
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Long-term debt, net
|
|
1,319
|
|
|
41
|
|
|
1,319
|
|
|
42
|
|
||
Preferred stock
|
|
34
|
|
|
1
|
|
|
34
|
|
|
1
|
|
||
Common stock equity
|
|
1,829
|
|
|
58
|
|
|
1,800
|
|
|
57
|
|
||
|
|
$
|
3,188
|
|
|
100
|
%
|
|
$
|
3,153
|
|
|
100
|
%
|
|
|
Average balance
|
|
Balance
|
||||||||
(in millions)
|
|
Nine months ended September 30, 2017
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||
Short-term borrowings
1
|
|
|
|
|
|
|
|
|
|
|||
Commercial paper
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
—
|
|
Line of credit draws
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Borrowings from HEI
|
|
2
|
|
|
—
|
|
|
—
|
|
|||
Undrawn capacity under line of credit facility
|
|
|
|
200
|
|
|
200
|
|
|
Nine months ended September 30,
|
|
|
||||||||
(in thousands)
|
2017
|
|
2016
|
|
Change
|
||||||
Net cash provided by operating activities
|
$
|
229,902
|
|
|
$
|
275,271
|
|
|
$
|
(45,369
|
)
|
Net cash used in investing activities
|
(229,287
|
)
|
|
(226,036
|
)
|
|
(3,251
|
)
|
|||
Net cash used in financing activities
|
(64,914
|
)
|
|
(50,707
|
)
|
|
(14,207
|
)
|
•
|
Lower cash from an increase in accounts receivable due to timing and an increase in fuel prices.
|
•
|
Lower cash from a decrease in accounts payable due to timing on payments of invoices related to fuel and capital projects.
|
•
|
Lower cash from an increase in unbilled revenues due to higher fuel prices.
|
•
|
Lower cash due to refund of federal income taxes in 2016 based on bonus depreciation enacted in the fourth quarter of 2015 (similar treatment was not granted in the fourth quarter of 2016).
|
|
|
Three months ended September 30
|
|
Increase
|
|
|
||||||||
(in millions)
|
|
2017
|
|
2016
|
|
(decrease)
|
|
Primary reason(s)
|
||||||
Interest income
|
|
$
|
59
|
|
|
$
|
55
|
|
|
$
|
4
|
|
|
The increase in interest income was the result of a higher average investment securities portfolio balance and an increase in yields on earning assets. ASB’s average loan portfolio balance for the three months ended September 30, 2017 decreased by $68 million compared to the same period in 2016 as increases in average consumer and home equity lines of credit balances of $54 million and $31 million, respectively, were more than offset by a decrease in commercial loan balances of $132 million. The decrease in the average commercial loan balance was primarily due to a decrease in the syndicated national credit loan portfolio and paydowns in the commercial loan portfolio. The yield on earning assets increased by 8 basis points due to the repricing of the adjustable rate loans with the increase in the interest rate environment and a shift in the mix of the loan portfolio with the growth in the consumer loan portfolio, which resulted in an increase in the loan portfolio yield of 20 basis points. The average investment securities portfolio balance increased by $378 million due to the use of excess liquidity to purchase investments. The yield on the investment securities portfolio increased by 8 basis points as new investment purchase yields were higher due to the increase in short-term interest rates.
|
Noninterest income
|
|
15
|
|
|
19
|
|
|
(4
|
)
|
|
Noninterest income decreased for the three months ended September 30, 2017 compared to noninterest income for the three months ended September 30, 2016 due to lower mortgage banking income. Prior year’s noninterest income included a gain on sale of real estate with no similar sale in 2017.
|
|||
Revenues
|
|
74
|
|
|
74
|
|
|
—
|
|
|
|
|||
Interest expense
|
|
3
|
|
|
3
|
|
|
—
|
|
|
Interest expense was flat for the three months ended September 30, 2017 compared to the same period in 2016 as higher interest expense from the growth in term certificates was offset by lower interest expense on other borrowings as a result of lower repurchase agreements and FHLB advances. Average deposit balances for the three months ended September 30, 2017 increased by $392 million compared to the same period in 2016 due to an increase in core deposits and term certificates of $303 million and $89 million, respectively. Other borrowings decreased by $105 million primarily due to a decrease in repurchase agreements and FHLB advances of $72 million and $33 million, respectively. The interest-bearing liability rate for the three months ended September 30, 2017 decreased by 5 basis points compared to the same period in 2016.
|
|||
Provision for loan losses
|
|
1
|
|
|
6
|
|
|
(5
|
)
|
|
The provision for loan losses decreased by $5.3 million for the three months ended September 30, 2017 compared to the provision for loan losses for the three months ended September 30, 2016. The provision for loan losses for 2017 was primarily due to increased loan loss reserves for the consumer loan portfolio partly offset by the release of reserves for the commercial real estate and syndicated national credit loan portfolios due to loan paydowns and sales as the Bank strategically worked to improve commercial asset quality. The provision for loan losses for 2016 was 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. Delinquency rates have increased from 0.51% at September 30, 2016 to 0.60% at September 30, 2017. The annualized net charge-off ratio for the three months ended September 30, 2017 was 0.32% compared to an annualized net charge-off ratio of 0.20% for the same period in 2016. 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.
|
|||
Noninterest expense
|
|
44
|
|
|
42
|
|
|
2
|
|
|
The increase in noninterest expense for the three months ended September 30, 2017 compared to the same period in 2016 was primarily due to higher compensation and employee benefits expenses as a result of higher performance-based compensation costs and higher employee benefit costs.
|
|||
Expenses
|
|
48
|
|
|
51
|
|
|
(3
|
)
|
|
|
|||
Operating income
|
|
26
|
|
|
23
|
|
|
3
|
|
|
Higher net interest income and lower provision for loan losses was partly offset by higher noninterest expenses and lower noninterest income.
|
|||
Net income
|
|
18
|
|
|
15
|
|
|
3
|
|
|
|
|
|
Nine months ended September 30
|
|
Increase
|
|
|
||||||||
(in millions)
|
|
2017
|
|
2016
|
|
(decrease)
|
|
Primary reason(s)
|
||||||
Interest income
|
|
$
|
176
|
|
|
$
|
163
|
|
|
$
|
13
|
|
|
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, 2017 increased by $17 million compared to the same period in 2016 as average consumer, commercial real estate and home equity lines of credit balances increased by $58 million, $48 million and $23 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 $103 million primarily due to a decrease in the syndicated national credit loan portfolio. The yield on earning assets increased by 7 basis points due to a shift in the mix of the loan portfolio with the growth in the commercial real estate and consumer loan portfolios and repricing of the adjustable rate loans with the increase in the interest rate environment, which resulted in an increase in loan portfolio yields of 17 basis points. The average investment securities portfolio balance increased by $358 million due to the use of excess liquidity to purchase investments. The yield on the investment securities portfolio increased by 9 basis points as new investment purchase yields were higher due to the increase in short-term interest rates.
|
Noninterest income
|
|
47
|
|
|
50
|
|
|
(3
|
)
|
|
Noninterest income decreased slightly for the nine months ended September 30, 2017 compared to noninterest income for the nine months ended September 30, 2016 due to lower mortgage banking income. Prior year’s noninterest income included gains on sales of securities and a gain on sale of real estate with no similar sales in 2017.
|
|||
Revenues
|
|
223
|
|
|
213
|
|
|
10
|
|
|
|
|||
Interest expense
|
|
9
|
|
|
10
|
|
|
(1
|
)
|
|
Interest expense was lower for the nine months ended September 30, 2017 compared to the same period in 2016 as higher interest expense from the growth in term certificates was more than offset by lower interest expense on other borrowings as a result of lower repurchase agreements and FHLB advances. Average deposit balances for the nine months ended September 30, 2017 increased by $471 million compared to the same period in 2016 due to an increase in core deposits and term certificates of $334 million and $137 million, respectively. Other borrowings decreased by $102 million primarily due to a decrease in repurchase agreements. The interest-bearing liability rate for the nine months ended September 30, 2017 decreased by 3 basis points compared to the same period in 2016.
|
|||
Provision for loan losses
|
|
7
|
|
|
15
|
|
|
(8
|
)
|
|
The provision for loan losses decreased by $8.0 million for the nine months ended September 30, 2017 compared to the provision for loan losses for the nine months ended September 30, 2016. The provision for loan losses for the first nine months of 2017 was primarily due to increased loan loss reserves for the consumer loan portfolio partly offset by the release of reserves for the commercial real estate and syndicated national credit loan portfolios due to lower outstanding balances and improved credit quality. The provision for loan losses for the first nine months of 2016 was 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. Delinquency rates have increased from 0.51% at September 30, 2016 to 0.60% at September 30, 2017. The annualized net charge-off ratio for the nine months ended September 30, 2017 was 0.27% compared to an annualized net charge-off ratio of 0.19% for the same period in 2016. The increase in net charge-offs for the first nine months of 2017 was 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.
|
|||
Noninterest expense
|
|
131
|
|
|
126
|
|
|
5
|
|
|
The increase in noninterest expense for the nine months ended September 30, 2017 compared to the same period in 2016 was primarily due to higher compensation and employee benefits expenses as a result of higher performance-based compensation costs and higher employee benefit costs. Prior year’s noninterest expense included costs related to the replacement and upgrade of the electronic banking platform.
|
|||
Expenses
|
|
147
|
|
|
151
|
|
|
(4
|
)
|
|
|
|||
Operating income
|
|
76
|
|
|
62
|
|
|
14
|
|
|
Higher net interest income and lower provision for loan losses was partly offset by higher noninterest expenses and lower noninterest income.
|
|||
Net income
|
|
50
|
|
|
41
|
|
|
9
|
|
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||
(percent)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Return on average assets
|
|
1.07
|
|
|
0.97
|
|
|
1.02
|
|
|
0.89
|
|
Return on average equity
|
|
11.64
|
|
|
10.36
|
|
|
11.24
|
|
|
9.50
|
|
Net interest margin
|
|
3.69
|
|
|
3.57
|
|
|
3.68
|
|
|
3.59
|
|
|
|
Three months ended September 30
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
(dollars in thousands)
|
|
Average
balance |
|
Interest
1
income/ expense |
|
Yield/
rate (%) |
|
Average
balance |
|
Interest
1
income/ expense |
|
Yield/
rate (%) |
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-earning deposits
|
|
$
|
54,598
|
|
|
$
|
172
|
|
|
1.23
|
|
|
$
|
97,885
|
|
|
$
|
124
|
|
|
0.50
|
|
FHLB stock
|
|
10,401
|
|
|
45
|
|
|
1.70
|
|
|
11,218
|
|
|
54
|
|
|
1.89
|
|
||||
Available-for-sale investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
1,291,604
|
|
|
6,521
|
|
|
2.02
|
|
|
928,698
|
|
|
4,581
|
|
|
1.97
|
|
||||
Non-taxable
|
|
15,427
|
|
|
171
|
|
|
4.33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total available-for-sale investment securities
|
|
1,307,031
|
|
|
6,692
|
|
|
2.05
|
|
|
928,698
|
|
|
4,581
|
|
|
1.97
|
|
||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential 1-4 family
|
|
2,066,648
|
|
|
21,383
|
|
|
4.14
|
|
|
2,077,135
|
|
|
22,044
|
|
|
4.24
|
|
||||
Commercial real estate
|
|
880,304
|
|
|
9,542
|
|
|
4.26
|
|
|
888,886
|
|
|
9,113
|
|
|
4.08
|
|
||||
Home equity line of credit
|
|
895,224
|
|
|
7,714
|
|
|
3.42
|
|
|
864,589
|
|
|
7,204
|
|
|
3.31
|
|
||||
Residential land
|
|
16,340
|
|
|
296
|
|
|
7.26
|
|
|
18,764
|
|
|
282
|
|
|
6.00
|
|
||||
Commercial
|
|
618,708
|
|
|
6,863
|
|
|
4.39
|
|
|
750,366
|
|
|
7,327
|
|
|
3.87
|
|
||||
Consumer
|
|
213,619
|
|
|
6,412
|
|
|
11.91
|
|
|
159,226
|
|
|
4,474
|
|
|
11.18
|
|
||||
Total loans
2,3
|
|
4,690,843
|
|
|
52,210
|
|
|
4.42
|
|
|
4,758,966
|
|
|
50,444
|
|
|
4.22
|
|
||||
Total interest-earning assets
2
|
|
6,062,873
|
|
|
59,119
|
|
|
3.88
|
|
|
5,796,767
|
|
|
55,203
|
|
|
3.80
|
|
||||
Allowance for loan losses
|
|
(55,881
|
)
|
|
|
|
|
|
|
|
(55,480
|
)
|
|
|
|
|
|
|
||||
Non-interest-earning assets
|
|
558,736
|
|
|
|
|
|
|
|
|
514,120
|
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
6,565,728
|
|
|
|
|
|
|
|
|
$
|
6,255,407
|
|
|
|
|
|
|
|
||
Liabilities and shareholder’s equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Savings
|
|
$
|
2,292,341
|
|
|
$
|
400
|
|
|
0.07
|
|
|
$
|
2,139,863
|
|
|
$
|
358
|
|
|
0.07
|
|
Interest-bearing checking
|
|
901,645
|
|
|
61
|
|
|
0.03
|
|
|
837,480
|
|
|
43
|
|
|
0.02
|
|
||||
Money market
|
|
138,151
|
|
|
41
|
|
|
0.12
|
|
|
161,149
|
|
|
52
|
|
|
0.13
|
|
||||
Time certificates
|
|
686,638
|
|
|
1,942
|
|
|
1.12
|
|
|
597,537
|
|
|
1,418
|
|
|
0.94
|
|
||||
Total interest-bearing deposits
|
|
4,018,775
|
|
|
2,444
|
|
|
0.24
|
|
|
3,736,029
|
|
|
1,871
|
|
|
0.20
|
|
||||
Advances from Federal Home Loan Bank
|
|
66,848
|
|
|
436
|
|
|
2.59
|
|
|
100,000
|
|
|
792
|
|
|
3.10
|
|
||||
Securities sold under agreements to repurchase
|
|
90,011
|
|
|
34
|
|
|
0.15
|
|
|
161,652
|
|
|
672
|
|
|
1.63
|
|
||||
Total interest-bearing liabilities
|
|
4,175,634
|
|
|
2,914
|
|
|
0.28
|
|
|
3,997,681
|
|
|
3,335
|
|
|
0.33
|
|
||||
Non-interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
|
1,681,774
|
|
|
|
|
|
|
|
|
1,572,821
|
|
|
|
|
|
|
|
||||
Other
|
|
103,695
|
|
|
|
|
|
|
|
|
101,759
|
|
|
|
|
|
|
|
||||
Shareholder’s equity
|
|
604,625
|
|
|
|
|
|
|
|
|
583,146
|
|
|
|
|
|
|
|
||||
Total liabilities and shareholder’s equity
|
|
$
|
6,565,728
|
|
|
|
|
|
|
|
|
$
|
6,255,407
|
|
|
|
|
|
|
|
||
Net interest income
|
|
|
|
|
$
|
56,205
|
|
|
|
|
|
|
|
|
$
|
51,868
|
|
|
|
|
||
Net interest margin (%)
4
|
|
|
|
|
|
|
|
3.69
|
|
|
|
|
|
|
|
|
3.57
|
|
|
|
Nine months ended September 30
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
(dollars in thousands)
|
|
Average
balance |
|
Interest
1
income/ expense |
|
Yield/
rate (%) |
|
Average
balance |
|
Interest
1
income/ expense |
|
Yield/
rate (%) |
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-earning deposits
|
|
$
|
64,426
|
|
|
$
|
479
|
|
|
0.98
|
|
|
$
|
80,738
|
|
|
$
|
304
|
|
|
0.50
|
|
FHLB stock
|
|
11,128
|
|
|
150
|
|
|
1.80
|
|
|
11,094
|
|
|
142
|
|
|
1.71
|
|
||||
Available-for-sale investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
1,235,029
|
|
|
19,651
|
|
|
2.12
|
|
|
892,726
|
|
|
13,773
|
|
|
2.06
|
|
||||
Non-taxable
|
|
15,427
|
|
|
481
|
|
|
4.11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total available-for-sale investment securities
|
|
1,250,456
|
|
|
20,132
|
|
|
2.15
|
|
|
892,726
|
|
|
13,773
|
|
|
2.06
|
|
||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential 1-4 family
|
|
2,070,150
|
|
|
65,172
|
|
|
4.20
|
|
|
2,076,308
|
|
|
66,565
|
|
|
4.27
|
|
||||
Commercial real estate
|
|
902,605
|
|
|
28,676
|
|
|
4.20
|
|
|
854,977
|
|
|
25,993
|
|
|
4.04
|
|
||||
Home equity line of credit
|
|
880,472
|
|
|
22,078
|
|
|
3.35
|
|
|
857,652
|
|
|
21,058
|
|
|
3.28
|
|
||||
Residential land
|
|
16,816
|
|
|
791
|
|
|
6.28
|
|
|
18,577
|
|
|
843
|
|
|
6.05
|
|
||||
Commercial
|
|
650,554
|
|
|
21,108
|
|
|
4.32
|
|
|
753,783
|
|
|
22,294
|
|
|
3.93
|
|
||||
Consumer
|
|
201,379
|
|
|
17,444
|
|
|
11.58
|
|
|
143,514
|
|
|
11,818
|
|
|
11.00
|
|
||||
Total loans
2,3
|
|
4,721,976
|
|
|
155,269
|
|
|
4.38
|
|
|
4,704,811
|
|
|
148,571
|
|
|
4.21
|
|
||||
Total interest-earning assets
2
|
|
6,047,986
|
|
|
176,030
|
|
|
3.88
|
|
|
5,689,369
|
|
|
162,790
|
|
|
3.81
|
|
||||
Allowance for loan losses
|
|
(56,276
|
)
|
|
|
|
|
|
|
|
(52,902
|
)
|
|
|
|
|
|
|
||||
Non-interest-earning assets
|
|
537,894
|
|
|
|
|
|
|
|
|
505,014
|
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
6,529,604
|
|
|
|
|
|
|
|
|
$
|
6,141,481
|
|
|
|
|
|
|
|
||
Liabilities and shareholder’s equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Savings
|
|
$
|
2,271,926
|
|
|
$
|
1,160
|
|
|
0.07
|
|
|
$
|
2,095,975
|
|
|
$
|
1,034
|
|
|
0.07
|
|
Interest-bearing checking
|
|
898,794
|
|
|
175
|
|
|
0.03
|
|
|
831,412
|
|
|
127
|
|
|
0.02
|
|
||||
Money market
|
|
146,864
|
|
|
133
|
|
|
0.12
|
|
|
164,596
|
|
|
157
|
|
|
0.13
|
|
||||
Time certificates
|
|
676,083
|
|
|
5,390
|
|
|
1.07
|
|
|
539,314
|
|
|
3,836
|
|
|
0.95
|
|
||||
Total interest-bearing deposits
|
|
3,993,667
|
|
|
6,858
|
|
|
0.23
|
|
|
3,631,297
|
|
|
5,154
|
|
|
0.19
|
|
||||
Advances from Federal Home Loan Bank
|
|
89,273
|
|
|
1,999
|
|
|
2.99
|
|
|
101,232
|
|
|
2,363
|
|
|
3.07
|
|
||||
Securities sold under agreements to repurchase
|
|
93,128
|
|
|
111
|
|
|
0.16
|
|
|
182,671
|
|
|
2,053
|
|
|
1.48
|
|
||||
Total interest-bearing liabilities
|
|
4,176,068
|
|
|
8,968
|
|
|
0.29
|
|
|
3,915,200
|
|
|
9,570
|
|
|
0.32
|
|
||||
Non-interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
|
1,658,238
|
|
|
|
|
|
|
|
|
1,549,467
|
|
|
|
|
|
|
|
||||
Other
|
|
100,499
|
|
|
|
|
|
|
|
|
100,210
|
|
|
|
|
|
|
|
||||
Shareholder’s equity
|
|
594,799
|
|
|
|
|
|
|
|
|
576,604
|
|
|
|
|
|
|
|
||||
Total liabilities and shareholder’s equity
|
|
$
|
6,529,604
|
|
|
|
|
|
|
|
|
$
|
6,141,481
|
|
|
|
|
|
|
|
||
Net interest income
|
|
|
|
|
$
|
167,062
|
|
|
|
|
|
|
|
|
$
|
153,220
|
|
|
|
|
||
Net interest margin (%)
4
|
|
|
|
|
|
|
|
3.68
|
|
|
|
|
|
|
|
|
3.59
|
|
1
|
Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $0.06 million and nil for the three months ended
September 30, 2017
and 2016, respectively and $0.2 million and nil for the nine months ended
September 30, 2017
and 2016, respectively.
|
3
|
Includes recognition of deferred loan fees of $0.3 million and $0.6 million for the three months ended
September 30, 2017
and 2016 and $1.4 million and $2.1 million for the nine months ended
September 30, 2017
and 2016, respectively, together with interest accrued prior to suspension of interest accrual on nonaccrual loans.
|
4
|
Defined as net interest income as a percentage of average total interest-earning assets.
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
(dollars in thousands)
|
|
Balance
|
|
% of total
|
|
Balance
|
|
% of total
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Residential 1-4 family
|
|
$
|
2,066,023
|
|
|
44.2
|
|
|
$
|
2,048,051
|
|
|
43.2
|
|
Commercial real estate
|
|
745,583
|
|
|
15.9
|
|
|
800,395
|
|
|
16.9
|
|
||
Home equity line of credit
|
|
905,249
|
|
|
19.4
|
|
|
863,163
|
|
|
18.2
|
|
||
Residential land
|
|
18,611
|
|
|
0.4
|
|
|
18,889
|
|
|
0.4
|
|
||
Commercial construction
|
|
128,407
|
|
|
2.7
|
|
|
126,768
|
|
|
2.7
|
|
||
Residential construction
|
|
13,031
|
|
|
0.3
|
|
|
16,080
|
|
|
0.3
|
|
||
Total real estate
|
|
3,876,904
|
|
|
82.9
|
|
|
3,873,346
|
|
|
81.7
|
|
||
Commercial
|
|
589,669
|
|
|
12.6
|
|
|
692,051
|
|
|
14.6
|
|
||
Consumer
|
|
211,571
|
|
|
4.5
|
|
|
178,222
|
|
|
3.7
|
|
||
|
|
4,678,144
|
|
|
100.0
|
|
|
4,743,619
|
|
|
100.0
|
|
||
Less: Deferred fees and discounts
|
|
(1,863
|
)
|
|
|
|
|
(4,926
|
)
|
|
|
|
||
Allowance for loan losses
|
|
(53,047
|
)
|
|
|
|
|
(55,533
|
)
|
|
|
|
||
Total loans, net
|
|
$
|
4,623,234
|
|
|
|
|
|
$
|
4,683,160
|
|
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Outstanding balance of home equity loans (in thousands)
|
|
$
|
905,249
|
|
|
$
|
863,163
|
|
Percent of portfolio in first lien position
|
|
47.2
|
%
|
|
45.1
|
%
|
||
Annualized net charge-off (recovery) ratio
|
|
(0.04
|
)%
|
|
0.01
|
%
|
||
Delinquency ratio
|
|
0.38
|
%
|
|
0.35
|
%
|
|
|
|
|
|
|
End of draw period – interest only
|
|
Current
|
||||||||||||||||
September 30, 2017
|
|
Total
|
|
Interest only
|
|
2017-2018
|
|
2019-2021
|
|
Thereafter
|
|
amortizing
|
||||||||||||
Outstanding balance (in thousands)
|
|
$
|
905,249
|
|
|
$
|
718,843
|
|
|
$
|
55,842
|
|
|
$
|
97,061
|
|
|
$
|
565,940
|
|
|
$
|
186,406
|
|
% of total
|
|
100
|
%
|
|
79
|
%
|
|
6
|
%
|
|
11
|
%
|
|
62
|
%
|
|
21
|
%
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
(dollars in thousands)
|
|
Balance
|
|
% of total
|
|
Balance
|
|
% of total
|
||||||
U.S. Treasury and federal agency obligations
|
|
$
|
182,118
|
|
|
14
|
%
|
|
$
|
192,281
|
|
|
18
|
%
|
Mortgage-related securities — FNMA, FHLMC and GNMA
|
|
1,122,565
|
|
|
85
|
|
|
897,474
|
|
|
81
|
|
||
Mortgage revenue bond
|
|
15,427
|
|
|
1
|
|
|
15,427
|
|
|
1
|
|
||
Total available-for-sale investment securities
|
|
$
|
1,320,110
|
|
|
100
|
%
|
|
$
|
1,105,182
|
|
|
100
|
%
|
|
|
Nine months ended September 30
|
|
Year ended
December 31,
|
||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2016
|
||||||
Allowance for loan losses, January 1
|
|
$
|
55,533
|
|
|
$
|
50,038
|
|
|
$
|
50,038
|
|
Provision for loan losses
|
|
7,231
|
|
|
15,266
|
|
|
16,763
|
|
|||
Less: net charge-offs
|
|
9,717
|
|
|
6,567
|
|
|
11,268
|
|
|||
Allowance for loan losses, end of period
|
|
$
|
53,047
|
|
|
$
|
58,737
|
|
|
$
|
55,533
|
|
Ratio of net charge-offs during the period to average loans outstanding (annualized)
|
|
0.27
|
%
|
|
0.19
|
%
|
|
0.24
|
%
|
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, 2017
|
|
December 31, 2016
|
|
% change
|
|||||
Total assets
|
|
$
|
6,619
|
|
|
$
|
6,421
|
|
|
3
|
|
Available-for-sale investment securities
|
|
1,320
|
|
|
1,105
|
|
|
19
|
|
||
Loans receivable held for investment, net
|
|
4,623
|
|
|
4,683
|
|
|
(1
|
)
|
||
Deposit liabilities
|
|
5,752
|
|
|
5,549
|
|
|
4
|
|
||
Other bank borrowings
|
|
154
|
|
|
193
|
|
|
(20
|
)
|
Change in interest rates
|
|
Change in NII
(gradual change in interest rates)
|
|
Change in EVE
(instantaneous change in interest rates)
|
||||||||
(basis points)
|
|
September 30, 2017
|
|
December 31, 2016
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
+300
|
|
3.4
|
%
|
|
1.9
|
%
|
|
(6.0
|
)%
|
|
(8.0
|
)%
|
+200
|
|
2.5
|
|
|
0.8
|
|
|
(2.7
|
)
|
|
(4.6
|
)
|
+100
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
(1.6
|
)
|
-100
|
|
(2.6
|
)
|
|
(0.5
|
)
|
|
(6.1
|
)
|
|
(1.6
|
)
|
Period*
|
|
Total Number of Shares Purchased **
|
|
Average
Price Paid
per Share **
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
|
|
July 1 to 31, 2017
|
|
33,787
|
|
|
$32.51
|
|
—
|
|
NA
|
August 1 to 31, 2017
|
|
25,972
|
|
|
$33.23
|
|
—
|
|
NA
|
September 1 to 30, 2017
|
|
181,072
|
|
|
$34.33
|
|
—
|
|
NA
|
|
|
Nine months ended September 30
|
|
Years ended December 31
|
|||||||||||||||||
|
|
2017
|
|
2016
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||
HEI and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding interest on ASB deposits
|
|
3.92
|
|
|
5.34
|
|
|
5.05
|
|
|
3.68
|
|
|
3.80
|
|
|
3.55
|
|
|
3.30
|
|
Including interest on ASB deposits
|
|
3.66
|
|
|
5.04
|
|
|
4.75
|
|
|
3.54
|
|
|
3.65
|
|
|
3.42
|
|
|
3.15
|
|
Hawaiian Electric and Subsidiaries
|
|
3.58
|
|
|
4.18
|
|
|
4.11
|
|
|
3.97
|
|
|
4.04
|
|
|
3.72
|
|
|
3.37
|
|
|
Letter Amendment effective August 15, 2017 to Master Trust Agreement (dated September 4, 2012) between HEI and ASB and Fidelity Management Trust Company
|
|
|
|
|
|
Hawaiian Electric Industries, Inc. and Subsidiaries
Computation of ratio of earnings to fixed charges, nine months ended September 30, 2017 and 2016 and years ended December 31, 2016, 2015, 2014, 2013 and 2012
|
|
|
|
|
|
Certification Pursuant to Rule 13a-14 promulgated under the Securities Exchange Act of 1934 of Constance H. Lau (HEI Chief Executive Officer)
|
|
|
|
|
|
Certification Pursuant to Rule 13a-14 promulgated under the Securities Exchange Act of 1934 of Gregory C. Hazelton (HEI Chief Financial Officer)
|
|
|
|
|
|
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 Company, Inc. and Subsidiaries
Computation of ratio of earnings to fixed charges, nine months ended September 30, 2017 and 2016 and years ended December 31, 2016, 2015, 2014, 2013 and 2012
|
|
|
|
|
|
Certification Pursuant to Rule 13a-14 promulgated under the Securities Exchange Act of 1934 of Alan M. Oshima (Hawaiian Electric Chief Executive Officer)
|
|
|
|
|
|
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 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/ Gregory C. Hazelton
|
|
By
|
/s/ Tayne S. Y. Sekimura
|
|
Gregory C. Hazelton
|
|
|
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 2, 2017
|
|
Date: November 2, 2017
|
Legal Plan Name
|
FPRS Plan Number
|
Plan Type
|
Hawaiian Electric Industries Retirement Savings Plan
|
56566
|
Qualified Plan
|
American Savings Bank 401(k) Plan
|
75615
|
Qualified Plan
|
Plan
#
|
Live Date
|
Ticker
|
Legal Fund Name
|
FPRS
Code
|
VRS
Code
|
Redemption/Short-Term
Trading Fees
|
56566
|
8/15/2017
|
FZCXX
|
Fidelity® Government Money Market Fund - Premium Class
|
2741
|
02741
|
N/A
|
56566
|
8/15/2017
|
FFGZX
|
Fidelity Freedom® Index Income Fund - Institutional Premium Class
|
2764
|
02764
|
N/A
|
56566
|
8/15/2017
|
FFGFX
|
Fidelity Freedom® Index 2005 Fund - Institutional Premium Class
|
2765
|
02765
|
N/A
|
56566
|
8/15/2017
|
FFWTX
|
Fidelity Freedom® Index 2010 Fund - Institutional Premium Class
|
2766
|
02766
|
N/A
|
56566
|
8/15/2017
|
FIWFX
|
Fidelity Freedom® Index 2015 Fund - Institutional Premium Class
|
2767
|
02767
|
N/A
|
56566
|
8/15/2017
|
FIWTX
|
Fidelity Freedom® Index 2020 Fund - Institutional Premium Class
|
2768
|
02768
|
N/A
|
56566
|
8/15/2017
|
FFEDX
|
Fidelity Freedom® Index 2025 Fund - Institutional Premium Class
|
2769
|
02769
|
N/A
|
56566
|
8/15/2017
|
FFEGX
|
Fidelity Freedom® Index 2030 Fund - Institutional Premium Class
|
2770
|
02770
|
N/A
|
56566
|
8/15/2017
|
FFEZX
|
Fidelity Freedom® Index 2035 Fund - Institutional Premium Class
|
2771
|
02771
|
N/A
|
56566
|
8/15/2017
|
FFIZX
|
Fidelity Freedom® Index 2040 Fund - Institutional Premium Class
|
2772
|
02772
|
N/A
|
56566
|
8/15/2017
|
FFOLX
|
Fidelity Freedom® Index 2045 Fund - Institutional Premium Class
|
2773
|
02773
|
N/A
|
56566
|
8/15/2017
|
FFOPX
|
Fidelity Freedom® Index 2050 Fund - Institutional Premium Class
|
2774
|
02774
|
N/A
|
56566
|
8/15/2017
|
FFLDX
|
Fidelity Freedom® Index 2055 Fund - Institutional Premium Class
|
2775
|
02775
|
N/A
|
56566
|
8/15/2017
|
FFLEX
|
Fidelity Freedom® Index 2060 Fund - Institutional Premium Class
|
2776
|
02776
|
N/A
|
75615
|
8/15/2017
|
FZCXX
|
Fidelity® Government Money Market Fund - Premium Class
|
2741
|
02741
|
N/A
|
75615
|
8/15/2017
|
FFGZX
|
Fidelity Freedom® Index Income Fund - Institutional Premium Class
|
2764
|
02764
|
N/A
|
75615
|
8/15/2017
|
FFGFX
|
Fidelity Freedom® Index 2005 Fund - Institutional Premium Class
|
2765
|
02765
|
N/A
|
75615
|
8/15/2017
|
FFWTX
|
Fidelity Freedom® Index 2010 Fund - Institutional Premium Class
|
2766
|
02766
|
N/A
|
75615
|
8/15/2017
|
FIWFX
|
Fidelity Freedom® Index 2015 Fund - Institutional Premium Class
|
2767
|
02767
|
N/A
|
75615
|
8/15/2017
|
FIWTX
|
Fidelity Freedom® Index 2020 Fund - Institutional Premium Class
|
2768
|
02768
|
N/A
|
75615
|
8/15/2017
|
FFEDX
|
Fidelity Freedom® Index 2025 Fund - Institutional Premium Class
|
2769
|
02769
|
N/A
|
75615
|
8/15/2017
|
FFEGX
|
Fidelity Freedom® Index 2030 Fund - Institutional Premium Class
|
2770
|
02770
|
N/A
|
75615
|
8/15/2017
|
FFEZX
|
Fidelity Freedom® Index 2035 Fund - Institutional Premium Class
|
2771
|
02771
|
N/A
|
75615
|
8/15/2017
|
FFIZX
|
Fidelity Freedom® Index 2040 Fund - Institutional Premium Class
|
2772
|
02772
|
N/A
|
75615
|
8/15/2017
|
FFOLX
|
Fidelity Freedom® Index 2045 Fund - Institutional Premium Class
|
2773
|
02773
|
N/A
|
75615
|
8/15/2017
|
FFOPX
|
Fidelity Freedom® Index 2050 Fund - Institutional Premium Class
|
2774
|
02774
|
N/A
|
75615
|
8/15/2017
|
FFLDX
|
Fidelity Freedom® Index 2055 Fund - Institutional Premium Class
|
2775
|
02775
|
N/A
|
75615
|
8/15/2017
|
FFLEX
|
Fidelity Freedom® Index 2060 Fund - Institutional Premium Class
|
2776
|
02776
|
N/A
|
•
|
Except to the extent specifically indicated otherwise herein with respect to a fund or funds, all of the new investment options will be opened for all money-in and money-out transactions, and will not be restricted from any transaction.
|
•
|
Fund Performance will be made available on NetBenefits and in participant statements. Fund Performance is also available through a Customer Service Representative.
|
•
|
Fidelity displays certain investment performance-related and holdings-based data for investment products on NetBenefits that may be based on data received from various third-party sources including but not limited to Morningstar, LLC, investment managers, trustees or plan sponsors. Depending on such source and type of underlying data and the particular investment product, information may not be available or updated on NetBenefits for several days after receipt; for custom investment options where past performance is not available, at least thirty days may be required for performance history to be generated and calculated.
|
•
|
The following Standard Performance will be made available, where applicable:
|
•
|
1, 3, 5, 10 Year Average Annual
|
•
|
Life of Fund Average Annual
|
•
|
3 Month Cumulative
|
•
|
Year-To-Date Cumulative
|
•
|
52 Week High
|
•
|
52 Week Low
|
•
|
The new funds will be added to the redemption methods for all withdrawals, loans and/or fee processing, as currently provided in your Agreement:
|
•
|
For redemption methods and/or fee processing using hierarchal method, the new funds will be added in the last position; and/or,
|
•
|
For redemption methods and/or fee processing using a pro-rata method, the new funds will be added to the list.
|
Plan
#
|
Request
Type-
Redirection/
Reallocation/
Both
|
Re-Direct
Trade
Date
|
Re-
Allocate
Trade
Date
|
Fidelity
(FROM)
FPRS
Code &
Ticker
|
From
Legal
Name
|
ð
|
To
Legal
Name
|
Fidelity
(TO)
FPRS
Code &
Ticker
|
Redemption/
Short-Term
Trading Fees
on From
Fund
|
56566
|
Both
|
8/15/2017
|
8/15/2017
|
0630 FRTXX
|
Fidelity Money Market Trust Retirement Government Money Market II Portfolio
|
ð
|
Fidelity® Government Money Market Fund - Premium Class
|
2741 FZCXX
|
N/A
|
56566
|
Both
|
8/15/2017
|
8/15/2017
|
2216 FIKFX
|
Fidelity Freedom® Index Income Fund - Investor Class
|
ð
|
Fidelity Freedom® Index Income Fund - Institutional Premium Class
|
2764 FFGZX
|
N/A
|
56566
|
Both
|
8/15/2017
|
8/15/2017
|
2223 FJIFX
|
Fidelity Freedom® Index 2005 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2005 Fund - Institutional Premium Class
|
2765 FFGFX
|
N/A
|
56566
|
Both
|
8/15/2017
|
8/15/2017
|
2226 FKIFX
|
Fidelity Freedom® Index 2010 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2010 Fund - Institutional Premium Class
|
2766 FFWTX
|
N/A
|
56566
|
Both
|
8/15/2017
|
8/15/2017
|
2242 FLIFX
|
Fidelity Freedom® Index 2015 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2015 Fund - Institutional Premium Class
|
2767 FIWFX
|
N/A
|
56566
|
Both
|
8/15/2017
|
8/15/2017
|
2228 FPIFX
|
Fidelity Freedom® Index 2020 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2020 Fund - Institutional Premium Class
|
2768 FIWTX
|
N/A
|
56566
|
Both
|
8/15/2017
|
8/15/2017
|
2232 FQIFX
|
Fidelity Freedom® Index 2025 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2025 Fund - Institutional Premium Class
|
2769 FFEDX
|
N/A
|
56566
|
Both
|
8/15/2017
|
8/15/2017
|
2235 FXIFX
|
Fidelity Freedom® Index 2030 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2030 Fund - Institutional Premium Class
|
2770 FFEGX
|
N/A
|
56566
|
Both
|
8/15/2017
|
8/15/2017
|
2238 FIHFX
|
Fidelity Freedom® Index 2035 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2035 Fund - Institutional Premium Class
|
2771 FFEZX
|
N/A
|
56566
|
Both
|
8/15/2017
|
8/15/2017
|
2239 FBIFX
|
Fidelity Freedom® Index 2040 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2040 Fund - Institutional Premium Class
|
2772 FFIZX
|
N/A
|
56566
|
Both
|
8/15/2017
|
8/15/2017
|
2240 FIOFX
|
Fidelity Freedom® Index 2045 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2045 Fund - Institutional Premium Class
|
2773 FFOLX
|
N/A
|
56566
|
Both
|
8/15/2017
|
8/15/2017
|
2241 FIPFX
|
Fidelity Freedom® Index 2050 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2050 Fund - Institutional Premium Class
|
2774 FFOPX
|
N/A
|
56566
|
Both
|
8/15/2017
|
8/15/2017
|
2338 FDEWX
|
Fidelity Freedom® Index 2055 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2055 Fund - Institutional Premium Class
|
2775 FFLDX
|
N/A
|
56566
|
Both
|
8/15/2017
|
8/15/2017
|
2714 FDKLX
|
Fidelity Freedom® Index 2060 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2060 Fund - Institutional Premium Class
|
2776 FFLEX
|
N/A
|
75615
|
Both
|
8/15/2017
|
8/15/2017
|
0630 FRTXX
|
Fidelity Money Market Trust Retirement Government Money Market II Portfolio
|
ð
|
Fidelity® Government Money Market Fund - Premium Class
|
2741 FZCXX
|
N/A
|
75615
|
Both
|
8/15/2017
|
8/15/2017
|
2216 FIKFX
|
Fidelity Freedom® Index Income Fund - Investor Class
|
ð
|
Fidelity Freedom® Index Income Fund - Institutional Premium Class
|
2764 FFGZX
|
N/A
|
75615
|
Both
|
8/15/2017
|
8/15/2017
|
2223 FJIFX
|
Fidelity Freedom® Index 2005 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2005 Fund - Institutional Premium Class
|
2765 FFGFX
|
N/A
|
75615
|
Both
|
8/15/2017
|
8/15/2017
|
2226 FKIFX
|
Fidelity Freedom® Index 2010 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2010 Fund - Institutional Premium Class
|
2766 FFWTX
|
N/A
|
75615
|
Both
|
8/15/2017
|
8/15/2017
|
2242 FLIFX
|
Fidelity Freedom® Index 2015 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2015 Fund - Institutional Premium Class
|
2767 FIWFX
|
N/A
|
75615
|
Both
|
8/15/2017
|
8/15/2017
|
2228 FPIFX
|
Fidelity Freedom® Index 2020 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2020 Fund - Institutional Premium Class
|
2768 FIWTX
|
N/A
|
75615
|
Both
|
8/15/2017
|
8/15/2017
|
2232 FQIFX
|
Fidelity Freedom® Index 2025 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2025 Fund - Institutional Premium Class
|
2769 FFEDX
|
N/A
|
75615
|
Both
|
8/15/2017
|
8/15/2017
|
2235 FXIFX
|
Fidelity Freedom® Index 2030 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2030 Fund - Institutional Premium Class
|
2770 FFEGX
|
N/A
|
75615
|
Both
|
8/15/2017
|
8/15/2017
|
2238 FIHFX
|
Fidelity Freedom® Index 2035 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2035 Fund - Institutional Premium Class
|
2771 FFEZX
|
N/A
|
75615
|
Both
|
8/15/2017
|
8/15/2017
|
2239 FBIFX
|
Fidelity Freedom® Index 2040 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2040 Fund - Institutional Premium Class
|
2772 FFIZX
|
N/A
|
75615
|
Both
|
8/15/2017
|
8/15/2017
|
2240 FIOFX
|
Fidelity Freedom® Index 2045 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2045 Fund - Institutional Premium Class
|
2773 FFOLX
|
N/A
|
75615
|
Both
|
8/15/2017
|
8/15/2017
|
2241 FIPFX
|
Fidelity Freedom® Index 2050 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2050 Fund - Institutional Premium Class
|
2774 FFOPX
|
N/A
|
75615
|
Both
|
8/15/2017
|
8/15/2017
|
2338 FDEWX
|
Fidelity Freedom® Index 2055 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2055 Fund - Institutional Premium Class
|
2775 FFLDX
|
N/A
|
75615
|
Both
|
8/15/2017
|
8/15/2017
|
2714 FDKLX
|
Fidelity Freedom® Index 2060 Fund - Investor Class
|
ð
|
Fidelity Freedom® Index 2060 Fund - Institutional Premium Class
|
2776 FFLEX
|
N/A
|
•
|
Except to the extent specifically indicated otherwise herein with respect to a fund or funds, all of the "From Fund" investment options will be closed for all money-in and money-out transactions, and will be restricted from all transactions.
|
•
|
All assets will be liquidated and processed as a cash transaction.
|
•
|
If participants have an investment option(s) included in an Automatic Rebalance mix that is subsequently replaced by another investment option(s), their Automatic Rebalance mix will automatically be updated to replace the old investment option(s) with the new investment option(s).
|
•
|
If participants have an investment option included in Automatic Rebalance mix which no longer accepts new contributions (commonly known as a "Frozen Fund"), they will be unenrolled from the service at the time of the fund change. Participants can always re-enroll in the service in the future.
|
•
|
Effective 8/15/2017, any Plan level account will now be directed to Fidelity® Government Money Market Fund - Premium Class (2741).
|
•
|
Effective 8/15/2017, any Revenue Credit account assets will now be directed to Fidelity® Government Money Market Fund - Premium Class (2741).
|
Fund Name
|
Fund Code
|
Retirement Date Range
|
DOB Range
|
Fidelity Freedom® Index Income Fund - Institutional Premium Class
|
2764
|
Retired before 2003
|
Before 1938
|
Fidelity Freedom® Index 2005 Fund - Institutional Premium Class
|
2765
|
2003 - 2007
|
1/1/1938-12/31/1942
|
Fidelity Freedom® Index 2010 Fund - Institutional Premium Class
|
2766
|
2008 - 2012
|
1/1/1943-12/31/1947
|
Fidelity Freedom® Index 2015 Fund - Institutional Premium Class
|
2767
|
2013 - 2017
|
1/1/1948-12/31/1952
|
Fidelity Freedom® Index 2020 Fund - Institutional Premium Class
|
2768
|
2018 - 2022
|
1/1/1953 - 12/31/1957
|
Fidelity Freedom® Index 2025 Fund - Institutional Premium Class
|
2769
|
2023 - 2027
|
1/1/1958 - 12/31/1962
|
Fidelity Freedom® Index 2030 Fund - Institutional Premium Class
|
2770
|
2028 - 2032
|
1/1/1963 - 12/31/1967
|
Fidelity Freedom® Index 2035 Fund - Institutional Premium Class
|
2771
|
2033 - 2037
|
1/1/1968 - 12/31/1972
|
Fidelity Freedom® Index 2040 Fund - Institutional Premium Class
|
2772
|
2038 - 2042
|
1/1/1973 - 12/31/1977
|
Fidelity Freedom® Index 2045 Fund - Institutional Premium Class
|
2773
|
2043 - 2047
|
1/1/1978 - 12/31/1982
|
Fidelity Freedom® Index 2050 Fund - Institutional Premium Class
|
2774
|
2048 - 2052
|
1/1/1983 - 12/31/1987
|
Fidelity Freedom® Index 2055 Fund - Institutional Premium Class
|
2775
|
2053 - 2057
|
1/1/1988 - 12/31/1992
|
Fidelity Freedom® Index 2060 Fund - Institutional Premium Class
|
2776
|
2058 and later
|
1/1/1993 and later
|
A.
|
Fidelity Freedom® Index Fund - Institutional Premium Class Default for Participants with an invalid Date of Birth will utilize the Fidelity Freedom® Index Income Fund - Institutional Premium Class (2764).
|
B.
|
Fidelity Freedom® Index Fund - Institutional Premium Class Age Default will apply to all sources of money listed below:
|
Nine months ended September 30
|
|
2017 (1)
|
|
2017 (2)
|
|
2016 (1)
|
|
2016 (2)
|
||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total interest charges
|
|
$
|
61,781
|
|
|
$
|
68,639
|
|
|
$
|
61,648
|
|
|
$
|
66,802
|
|
Interest component of rentals
|
|
4,918
|
|
|
4,918
|
|
|
4,661
|
|
|
4,661
|
|
||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
2,176
|
|
|
2,176
|
|
|
2,082
|
|
|
2,082
|
|
||||
Total fixed charges
|
|
$
|
68,875
|
|
|
$
|
75,733
|
|
|
$
|
68,391
|
|
|
$
|
73,545
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax income from continuing operations
|
|
$
|
204,930
|
|
|
$
|
204,930
|
|
|
$
|
299,825
|
|
|
$
|
299,825
|
|
Fixed charges, as shown
|
|
68,875
|
|
|
75,733
|
|
|
68,391
|
|
|
73,545
|
|
||||
Interest capitalized
|
|
(3,807
|
)
|
|
(3,807
|
)
|
|
(2,716
|
)
|
|
(2,716
|
)
|
||||
Earnings available for fixed charges
|
|
$
|
269,998
|
|
|
$
|
276,856
|
|
|
$
|
365,500
|
|
|
$
|
370,654
|
|
Ratio of earnings to fixed charges
|
|
3.92
|
|
|
3.66
|
|
|
5.34
|
|
|
5.04
|
|
Years ended December 31
|
|
2016 (1)
|
|
2016 (2)
|
|
2015 (1)
|
|
2015 (2)
|
|
2014 (1)
|
|
2014 (2)
|
||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total interest charges
|
|
$
|
81,974
|
|
|
$
|
89,141
|
|
|
$
|
83,936
|
|
|
$
|
89,284
|
|
|
$
|
83,458
|
|
|
$
|
88,535
|
|
Interest component of rentals
|
|
6,200
|
|
|
6,200
|
|
|
6,065
|
|
|
6,065
|
|
|
6,366
|
|
|
6,366
|
|
||||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
2,825
|
|
|
2,825
|
|
|
2,977
|
|
|
2,977
|
|
|
2,952
|
|
|
2,952
|
|
||||||
Total fixed charges
|
|
$
|
90,999
|
|
|
$
|
98,166
|
|
|
$
|
92,978
|
|
|
$
|
98,326
|
|
|
$
|
92,776
|
|
|
$
|
97,853
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pretax income from continuing operations
|
|
$
|
371,951
|
|
|
$
|
371,951
|
|
|
$
|
252,898
|
|
|
$
|
252,898
|
|
|
$
|
263,708
|
|
|
$
|
263,708
|
|
Fixed charges, as shown
|
|
90,999
|
|
|
98,166
|
|
|
92,978
|
|
|
98,326
|
|
|
92,776
|
|
|
97,853
|
|
||||||
Interest capitalized
|
|
(3,727
|
)
|
|
(3,727
|
)
|
|
(3,265
|
)
|
|
(3,265
|
)
|
|
(3,954
|
)
|
|
(3,954
|
)
|
||||||
Earnings available for fixed charges
|
|
$
|
459,223
|
|
|
$
|
466,390
|
|
|
$
|
342,611
|
|
|
$
|
347,959
|
|
|
$
|
352,530
|
|
|
$
|
357,607
|
|
Ratio of earnings to fixed charges
|
|
5.05
|
|
|
4.75
|
|
|
3.68
|
|
|
3.54
|
|
|
3.80
|
|
|
3.65
|
|
Years ended December 31
|
|
2013 (1)
|
|
2013 (2)
|
|
2012 (1)
|
|
2012 (2)
|
||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total interest charges
|
|
$
|
85,315
|
|
|
$
|
90,407
|
|
|
$
|
83,020
|
|
|
$
|
89,443
|
|
Interest component of rentals
|
|
6,345
|
|
|
6,345
|
|
|
6,493
|
|
|
6,493
|
|
||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
2,886
|
|
|
2,886
|
|
|
2,943
|
|
|
2,943
|
|
||||
Total fixed charges
|
|
$
|
94,546
|
|
|
$
|
99,638
|
|
|
$
|
92,456
|
|
|
$
|
98,879
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax income from continuing operations
|
|
$
|
247,946
|
|
|
$
|
247,946
|
|
|
$
|
217,064
|
|
|
$
|
217,064
|
|
Fixed charges, as shown
|
|
94,546
|
|
|
99,638
|
|
|
92,456
|
|
|
98,879
|
|
||||
Interest capitalized
|
|
(7,097
|
)
|
|
(7,097
|
)
|
|
(4,355
|
)
|
|
(4,355
|
)
|
||||
Earnings available for fixed charges
|
|
$
|
335,395
|
|
|
$
|
340,487
|
|
|
$
|
305,165
|
|
|
$
|
311,588
|
|
Ratio of earnings to fixed charges
|
|
3.55
|
|
|
3.42
|
|
|
3.30
|
|
|
3.15
|
|
(1)
|
Excluding interest on ASB deposits.
|
(2)
|
Including interest on ASB deposits.
|
|
|
Nine months ended September 30
|
|
Years ended December 31
|
||||||||||||||||||||||||
(dollars in thousands)
|
|
2017
|
|
2016
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total interest charges
|
|
$
|
53,061
|
|
|
$
|
50,174
|
|
|
$
|
67,407
|
|
|
$
|
67,178
|
|
|
$
|
66,132
|
|
|
$
|
64,130
|
|
|
$
|
62,056
|
|
Interest component of rentals
|
|
2,636
|
|
|
2,435
|
|
|
3,249
|
|
|
3,060
|
|
|
3,244
|
|
|
2,793
|
|
|
2,690
|
|
|||||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
1,076
|
|
|
1,084
|
|
|
1,453
|
|
|
1,443
|
|
|
1,444
|
|
|
1,421
|
|
|
1,467
|
|
|||||||
Total fixed charges
|
|
$
|
56,773
|
|
|
$
|
53,693
|
|
|
$
|
72,109
|
|
|
$
|
71,681
|
|
|
$
|
70,820
|
|
|
$
|
68,344
|
|
|
$
|
66,213
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income attributable to Hawaiian Electric
|
|
$
|
95,406
|
|
|
$
|
109,712
|
|
|
$
|
143,397
|
|
|
$
|
136,794
|
|
|
$
|
138,721
|
|
|
$
|
124,009
|
|
|
$
|
100,356
|
|
Fixed charges, as shown
|
|
56,773
|
|
|
53,693
|
|
|
72,109
|
|
|
71,681
|
|
|
70,820
|
|
|
68,344
|
|
|
66,213
|
|
|||||||
Income taxes
|
|
54,623
|
|
|
63,978
|
|
|
84,801
|
|
|
79,422
|
|
|
80,725
|
|
|
69,117
|
|
|
61,048
|
|
|||||||
Interest capitalized
|
|
(3,807
|
)
|
|
(2,716
|
)
|
|
(3,727
|
)
|
|
(3,265
|
)
|
|
(3,954
|
)
|
|
(7,097
|
)
|
|
(4,355
|
)
|
|||||||
Earnings available for fixed charges
|
|
$
|
202,995
|
|
|
$
|
224,667
|
|
|
$
|
296,580
|
|
|
$
|
284,632
|
|
|
$
|
286,312
|
|
|
$
|
254,373
|
|
|
$
|
223,262
|
|
Ratio of earnings to fixed charges
|
|
3.58
|
|
|
4.18
|
|
|
4.11
|
|
|
3.97
|
|
|
4.04
|
|
|
3.72
|
|
|
3.37
|
|
Date: November 2, 2017
|
|
|
/s/ Constance H. Lau
|
|
Constance H. Lau
|
|
President and Chief Executive Officer
|
Date: November 2, 2017
|
|
|
/s/ Gregory C. Hazelton
|
|
Gregory C. Hazelton
|
|
Executive Vice President and Chief Financial Officer
|
Date: November 2, 2017
|
|
|
/s/ Alan M. Oshima
|
|
Alan M. Oshima
|
|
President and Chief Executive Officer
|
Date: November 2, 2017
|
|
|
/s/ Tayne S. Y. Sekimura
|
|
Tayne S. Y. Sekimura
|
|
Senior Vice President and Chief Financial Officer
|
Date: November 2, 2017
|
|
/s/ Constance H. Lau
|
Constance H. Lau
|
President and Chief Executive Officer
|
|
/s/ Gregory C. Hazelton
|
Gregory C. Hazelton
|
Executive Vice President and Chief Financial Officer
|
Date: November 2, 2017
|
|
/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
|