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
|
||||
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 April 27, 2018
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Hawaiian Electric Industries, Inc. (Without Par Value)
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108,841,348 Shares
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Hawaiian Electric Company, Inc. ($6-2/3 Par Value)
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16,142,216 Shares (not publicly traded)
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Page No.
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Terms
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Definitions
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ADIT
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Accumulated deferred income tax balances
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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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ASC
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Accounting Standards Codification
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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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CIAC
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Contributions in aid of construction
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CIP CT-1
|
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Campbell Industrial Park 110 MW combustion turbine No. 1
|
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.; Pacific Current, LLC and its subsidiaries, Hamakua Holdings, LLC (and its subsidiary, Hamakua Energy, LLC) and Mauo Holdings, LLC (and its subsidiary, Mauo, LLC); The Old Oahu Tug Service, Inc. (formerly Hawaiian Tug & Barge Corp.); and HEI Properties, Inc. (dissolved in 2015 and wound up in 2017)
|
Consumer Advocate
|
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Division of Consumer Advocacy, Department of Commerce and Consumer Affairs of the State of Hawaii
|
CBRE
|
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Community-based renewable energy
|
DER
|
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Distributed energy resources
|
D&O
|
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Decision and order from the PUC
|
Dodd-Frank Act
|
|
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
|
DOH
|
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Department of Health of the State of Hawaii
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DRIP
|
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HEI Dividend Reinvestment and Stock Purchase Plan
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ECAC
|
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Energy cost adjustment clause
|
EIP
|
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2010 Equity and Incentive Plan, as amended and restated
|
EPA
|
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Environmental Protection Agency — federal
|
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
|
FASB
|
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Financial Accounting Standards Board
|
FDIC
|
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Federal Deposit Insurance Corporation
|
federal
|
|
U.S. Government
|
FHLB
|
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Federal Home Loan Bank
|
FHLMC
|
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Federal Home Loan Mortgage Corporation
|
FNMA
|
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Federal National Mortgage Association
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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
|
|
Government National Mortgage Association
|
Hawaii Electric Light
|
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Hawaii Electric Light Company, Inc., an electric utility subsidiary of Hawaiian Electric Company, Inc.
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Hawaiian Electric
|
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Hawaiian Electric Company, Inc., an electric utility subsidiary of Hawaiian Electric Industries, Inc. and parent company of Hawaii Electric Light Company, Inc., Maui Electric Company, Limited, HECO Capital Trust III (unconsolidated financing subsidiary), Renewable Hawaii, Inc. and Uluwehiokama Biofuels Corp.
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Hamakua Energy
|
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Hamakua Energy, LLC, an indirect subsidiary of HEI and successor in interest to 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.
|
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
|
|
City and County of Honolulu with respect to a power purchase agreement for a refuse-fired plant
|
IPP
|
|
Independent power producer
|
Kalaeloa
|
|
Kalaeloa Partners, L.P.
|
KWH
|
|
Kilowatthour/s (as applicable)
|
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.
|
MPIR
|
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Major Project Interim Recovery
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MSR
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Mortgage servicing right
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Mauo
|
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Mauo, LLC, an indirect subsidiary of HEI
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MW
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|
Megawatt/s (as applicable)
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NEM
|
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Net energy metering
|
NII
|
|
Net interest income
|
NPBC
|
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Net periodic benefit costs
|
NPPC
|
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Net periodic pension costs
|
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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Pacific Current
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Pacific Current, LLC, a wholly owned subsidiary of HEI and parent company of Hamakua Holdings, LLC and Mauo Holdings, LLC
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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
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ROACE
|
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Return on average common equity
|
RORB
|
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Return on rate base
|
RPS
|
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Renewable portfolio standards
|
SEC
|
|
Securities and Exchange Commission
|
See
|
|
Means the referenced material is incorporated by reference
|
Tax Act
|
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2017 Tax Cuts and Jobs Act (H.R. 1, An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018)
|
TDR
|
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Troubled debt restructuring
|
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
|
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; 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);
|
•
|
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, trade policy and tariffs, and other 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 (including tax 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 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, the PUC’s April 2014 statement of its 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, distributed generation, 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 such as the commercial development of energy storage and microgrids and banking through alternative channels;
|
•
|
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 March 31
|
||||||
(in thousands, except per share amounts)
|
|
2018
|
|
2017
|
||||
Revenues
|
|
|
|
|
|
|
||
Electric utility
|
|
$
|
570,427
|
|
|
$
|
518,611
|
|
Bank
|
|
75,419
|
|
|
72,856
|
|
||
Other
|
|
28
|
|
|
95
|
|
||
Total revenues
|
|
645,874
|
|
|
591,562
|
|
||
Expenses
|
|
|
|
|
|
|
||
Electric utility
|
|
519,058
|
|
|
468,250
|
|
||
Bank
|
|
50,532
|
|
|
48,501
|
|
||
Other
|
|
4,395
|
|
|
5,073
|
|
||
Total expenses
|
|
573,985
|
|
|
521,824
|
|
||
Operating income (loss)
|
|
|
|
|
|
|
||
Electric utility
|
|
51,369
|
|
|
50,361
|
|
||
Bank
|
|
24,887
|
|
|
24,355
|
|
||
Other
|
|
(4,367
|
)
|
|
(4,978
|
)
|
||
Total operating income
|
|
71,889
|
|
|
69,738
|
|
||
Retirement defined benefits expense—other than service costs
|
|
(1,833
|
)
|
|
(1,876
|
)
|
||
Interest expense, net—other than on deposit liabilities and other bank borrowings
|
|
(21,518
|
)
|
|
(19,568
|
)
|
||
Allowance for borrowed funds used during construction
|
|
1,444
|
|
|
889
|
|
||
Allowance for equity funds used during construction
|
|
3,294
|
|
|
2,399
|
|
||
Income before income taxes
|
|
53,276
|
|
|
51,582
|
|
||
Income taxes
|
|
12,556
|
|
|
16,916
|
|
||
Net income
|
|
40,720
|
|
|
34,666
|
|
||
Preferred stock dividends of subsidiaries
|
|
473
|
|
|
473
|
|
||
Net income for common stock
|
|
$
|
40,247
|
|
|
$
|
34,193
|
|
Basic earnings per common share
|
|
$
|
0.37
|
|
|
$
|
0.31
|
|
Diluted earnings per common share
|
|
$
|
0.37
|
|
|
$
|
0.31
|
|
Dividends declared per common share
|
|
$
|
0.31
|
|
|
$
|
0.31
|
|
Weighted-average number of common shares outstanding
|
|
108,818
|
|
|
108,674
|
|
||
Net effect of potentially dilutive shares
|
|
206
|
|
|
184
|
|
||
Weighted-average shares assuming dilution
|
|
109,024
|
|
|
108,858
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2018
|
|
2017
|
||||
Net income for common stock
|
|
$
|
40,247
|
|
|
$
|
34,193
|
|
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 $4,867 and $(148), respectively
|
|
(13,297
|
)
|
|
223
|
|
||
Derivatives qualifying as cash flow hedges:
|
|
|
|
|
|
|
||
Reclassification adjustment to net income, net of tax benefits of nil and $289, respectively
|
|
—
|
|
|
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 of $1,792 and $2,502, respectively
|
|
5,146
|
|
|
3,921
|
|
||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $1,603 and $2,301, respectively
|
|
(4,622
|
)
|
|
(3,613
|
)
|
||
Other comprehensive income (loss), net of taxes
|
|
(12,773
|
)
|
|
985
|
|
||
Comprehensive income attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
27,474
|
|
|
$
|
35,178
|
|
(dollars in thousands)
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
Assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
244,785
|
|
|
$
|
261,881
|
|
Accounts receivable and unbilled revenues, net
|
|
266,336
|
|
|
263,209
|
|
||
Available-for-sale investment securities, at fair value
|
|
1,418,490
|
|
|
1,401,198
|
|
||
Held-to-maturity investment securities, at amortized cost
|
|
43,450
|
|
|
44,515
|
|
||
Stock in Federal Home Loan Bank, at cost
|
|
10,158
|
|
|
9,706
|
|
||
Loans held for investment, net
|
|
4,688,129
|
|
|
4,617,131
|
|
||
Loans held for sale, at lower of cost or fair value
|
|
7,379
|
|
|
11,250
|
|
||
Property, plant and equipment, net of accumulated depreciation of $2,587,998 and $2,553,295 at March 31, 2018 and December 31, 2017, respectively
|
|
4,542,558
|
|
|
4,460,248
|
|
||
Regulatory assets
|
|
872,499
|
|
|
869,297
|
|
||
Other
|
|
526,744
|
|
|
513,535
|
|
||
Goodwill
|
|
82,190
|
|
|
82,190
|
|
||
Total assets
|
|
$
|
12,702,718
|
|
|
$
|
12,534,160
|
|
Liabilities and shareholders’ equity
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
190,221
|
|
|
$
|
193,714
|
|
Interest and dividends payable
|
|
29,786
|
|
|
25,837
|
|
||
Deposit liabilities
|
|
6,079,067
|
|
|
5,890,597
|
|
||
Short-term borrowings—other than bank
|
|
238,445
|
|
|
117,945
|
|
||
Other bank borrowings
|
|
100,430
|
|
|
190,859
|
|
||
Long-term debt, net—other than bank
|
|
1,684,002
|
|
|
1,683,797
|
|
||
Deferred income taxes
|
|
381,478
|
|
|
388,430
|
|
||
Regulatory liabilities
|
|
895,093
|
|
|
880,770
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
502,304
|
|
|
509,514
|
|
||
Other
|
|
475,822
|
|
|
521,018
|
|
||
Total liabilities
|
|
10,576,648
|
|
|
10,402,481
|
|
||
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: 108,841,157 shares and 108,787,807 shares at March 31, 2018 and December 31, 2017, respectively
|
|
1,663,149
|
|
|
1,662,491
|
|
||
Retained earnings
|
|
483,342
|
|
|
476,836
|
|
||
Accumulated other comprehensive loss, net of tax benefits
|
|
(54,714
|
)
|
|
(41,941
|
)
|
||
Total shareholders’ equity
|
|
2,091,777
|
|
|
2,097,386
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
12,702,718
|
|
|
$
|
12,534,160
|
|
|
|
Common stock
|
|
Retained
|
|
Accumulated
other
comprehensive
|
|
|
|||||||||||
(in thousands)
|
|
Shares
|
|
Amount
|
|
Earnings
|
|
income (loss)
|
|
Total
|
|||||||||
Balance, December 31, 2017
|
|
108,788
|
|
|
$
|
1,662,491
|
|
|
$
|
476,836
|
|
|
$
|
(41,941
|
)
|
|
$
|
2,097,386
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
40,247
|
|
|
—
|
|
|
40,247
|
|
||||
Other comprehensive loss, net of tax benefits
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,773
|
)
|
|
(12,773
|
)
|
||||
Issuance of common stock, net of expenses
|
|
53
|
|
|
658
|
|
|
—
|
|
|
—
|
|
|
658
|
|
||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
(33,741
|
)
|
|
—
|
|
|
(33,741
|
)
|
||||
Balance, March 31, 2018
|
|
108,841
|
|
|
$
|
1,663,149
|
|
|
$
|
483,342
|
|
|
$
|
(54,714
|
)
|
|
$
|
2,091,777
|
|
Balance, December 31, 2016
|
|
108,583
|
|
|
$
|
1,660,910
|
|
|
$
|
438,972
|
|
|
$
|
(33,129
|
)
|
|
$
|
2,066,753
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
34,193
|
|
|
—
|
|
|
34,193
|
|
||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
985
|
|
|
985
|
|
||||
Issuance of common stock, net of expenses
|
|
162
|
|
|
(2,630
|
)
|
|
—
|
|
|
—
|
|
|
(2,630
|
)
|
||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
(33,713
|
)
|
|
—
|
|
|
(33,713
|
)
|
||||
Balance, March 31, 2017
|
|
108,745
|
|
|
$
|
1,658,280
|
|
|
$
|
439,452
|
|
|
$
|
(32,144
|
)
|
|
$
|
2,065,588
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
40,720
|
|
|
$
|
34,666
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||
Depreciation of property, plant and equipment
|
|
53,091
|
|
|
50,051
|
|
||
Other amortization
|
|
8,745
|
|
|
2,372
|
|
||
Provision for loan losses
|
|
3,541
|
|
|
3,907
|
|
||
Loans originated and purchased, held for sale
|
|
(36,409
|
)
|
|
(35,725
|
)
|
||
Proceeds from sale of loans, held for sale
|
|
33,114
|
|
|
40,588
|
|
||
Deferred income taxes
|
|
(2,889
|
)
|
|
10,096
|
|
||
Share-based compensation expense
|
|
1,657
|
|
|
1,056
|
|
||
Allowance for equity funds used during construction
|
|
(3,294
|
)
|
|
(2,399
|
)
|
||
Other
|
|
2,150
|
|
|
(347
|
)
|
||
Changes in assets and liabilities
|
|
|
|
|
|
|
||
Increase in accounts receivable and unbilled revenues, net
|
|
(7,829
|
)
|
|
(12,337
|
)
|
||
Increase in fuel oil stock
|
|
(1,704
|
)
|
|
(7,444
|
)
|
||
Decrease (increase) in regulatory assets
|
|
(16,900
|
)
|
|
5,909
|
|
||
Increase in accounts, interest and dividends payable
|
|
22,808
|
|
|
24,903
|
|
||
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes
|
|
(29,842
|
)
|
|
(42,175
|
)
|
||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability
|
|
(390
|
)
|
|
1,012
|
|
||
Change in other assets and liabilities
|
|
(31,892
|
)
|
|
(27,142
|
)
|
||
Net cash provided by operating activities
|
|
34,677
|
|
|
46,991
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
||
Available-for-sale investment securities purchased
|
|
(88,403
|
)
|
|
(171,878
|
)
|
||
Principal repayments on available-for-sale investment securities
|
|
51,895
|
|
|
48,200
|
|
||
Principal repayment of held-to-maturity investment securities
|
|
1,032
|
|
|
—
|
|
||
Purchase of stock from Federal Home Loan Bank
|
|
(2,853
|
)
|
|
(488
|
)
|
||
Redemption of stock from Federal Home Loan Bank
|
|
2,400
|
|
|
—
|
|
||
Net decrease (increase) in loans held for investment
|
|
(75,006
|
)
|
|
890
|
|
||
Proceeds from sale of commercial loans
|
|
7,149
|
|
|
13,493
|
|
||
Proceeds from sale of real estate acquired in settlement of loans
|
|
589
|
|
|
185
|
|
||
Capital expenditures
|
|
(133,352
|
)
|
|
(91,242
|
)
|
||
Contributions in aid of construction
|
|
4,330
|
|
|
10,650
|
|
||
Contributions to low income housing investments
|
|
(1,425
|
)
|
|
—
|
|
||
Other
|
|
2,593
|
|
|
5,709
|
|
||
Net cash used in investing activities
|
|
(231,051
|
)
|
|
(184,481
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
||
Net increase in deposit liabilities
|
|
86,095
|
|
|
126,161
|
|
||
Net increase in short-term borrowings with original maturities of three months or less
|
|
120,485
|
|
|
2,300
|
|
||
Net increase in retail repurchase agreements
|
|
11,946
|
|
|
21,071
|
|
||
Proceeds from other bank borrowings
|
|
60,000
|
|
|
—
|
|
||
Repayments of other bank borrowings
|
|
(60,000
|
)
|
|
(13,534
|
)
|
||
Withheld shares for employee taxes on vested share-based compensation
|
|
(991
|
)
|
|
(3,687
|
)
|
||
Common stock dividends
|
|
(33,741
|
)
|
|
(33,713
|
)
|
||
Preferred stock dividends of subsidiaries
|
|
(473
|
)
|
|
(473
|
)
|
||
Other
|
|
(4,043
|
)
|
|
(4,857
|
)
|
||
Net cash provided by financing activities
|
|
179,278
|
|
|
93,268
|
|
||
Net decrease in cash and cash equivalents
|
|
(17,096
|
)
|
|
(44,222
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
261,881
|
|
|
278,452
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
244,785
|
|
|
$
|
234,230
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2018
|
|
2017
|
||||
Revenues
|
|
$
|
570,427
|
|
|
$
|
518,611
|
|
Expenses
|
|
|
|
|
|
|
||
Fuel oil
|
|
166,968
|
|
|
144,270
|
|
||
Purchased power
|
|
139,910
|
|
|
127,124
|
|
||
Other operation and maintenance
|
|
107,610
|
|
|
98,817
|
|
||
Depreciation
|
|
50,466
|
|
|
48,216
|
|
||
Taxes, other than income taxes
|
|
54,104
|
|
|
49,823
|
|
||
Total expenses
|
|
519,058
|
|
|
468,250
|
|
||
Operating income
|
|
51,369
|
|
|
50,361
|
|
||
Allowance for equity funds used during construction
|
|
3,294
|
|
|
2,399
|
|
||
Retirement defined benefits expense—other than service costs
|
|
(1,264
|
)
|
|
(1,423
|
)
|
||
Interest expense and other charges, net
|
|
(17,694
|
)
|
|
(17,504
|
)
|
||
Allowance for borrowed funds used during construction
|
|
1,444
|
|
|
889
|
|
||
Income before income taxes
|
|
37,149
|
|
|
34,722
|
|
||
Income taxes
|
|
9,175
|
|
|
12,758
|
|
||
Net income
|
|
27,974
|
|
|
21,964
|
|
||
Preferred stock dividends of subsidiaries
|
|
229
|
|
|
229
|
|
||
Net income attributable to Hawaiian Electric
|
|
27,745
|
|
|
21,735
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
270
|
|
||
Net income for common stock
|
|
$
|
27,475
|
|
|
$
|
21,465
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2018
|
|
2017
|
||||
Net income for common stock
|
|
$
|
27,475
|
|
|
$
|
21,465
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
||
Derivatives qualifying as cash flow hedges:
|
|
|
|
|
||||
Reclassification adjustment to net income, net of tax benefits of nil and $289, respectively
|
|
—
|
|
|
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 of $1,614 and $2,304, respectively
|
|
4,653
|
|
|
3,618
|
|
||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $1,603 and $2,301, respectively
|
|
(4,622
|
)
|
|
(3,613
|
)
|
||
Other comprehensive income, net of taxes
|
|
31
|
|
|
459
|
|
||
Comprehensive income attributable to Hawaiian Electric Company, Inc.
|
|
$
|
27,506
|
|
|
$
|
21,924
|
|
(dollars in thousands, except par value)
|
|
March 31, 2018
|
|
|
December 31, 2017
|
|
||
Assets
|
|
|
|
|
|
|
||
Property, plant and equipment
|
|
|
|
|
||||
Utility property, plant and equipment
|
|
|
|
|
|
|
||
Land
|
|
$
|
52,940
|
|
|
$
|
53,177
|
|
Plant and equipment
|
|
6,452,215
|
|
|
6,401,040
|
|
||
Less accumulated depreciation
|
|
(2,507,942
|
)
|
|
(2,476,352
|
)
|
||
Construction in progress
|
|
291,937
|
|
|
263,094
|
|
||
Utility property, plant and equipment, net
|
|
4,289,150
|
|
|
4,240,959
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation of $1,252 as of March 31, 2018 and $1,251 as of December 31, 2017
|
|
7,582
|
|
|
7,580
|
|
||
Total property, plant and equipment, net
|
|
4,296,732
|
|
|
4,248,539
|
|
||
Current assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
23,399
|
|
|
12,517
|
|
||
Customer accounts receivable, net
|
|
141,433
|
|
|
127,889
|
|
||
Accrued unbilled revenues, net
|
|
99,635
|
|
|
107,054
|
|
||
Other accounts receivable, net
|
|
3,953
|
|
|
7,163
|
|
||
Fuel oil stock, at average cost
|
|
88,723
|
|
|
86,873
|
|
||
Materials and supplies, at average cost
|
|
55,692
|
|
|
54,397
|
|
||
Prepayments and other
|
|
30,208
|
|
|
25,355
|
|
||
Regulatory assets
|
|
102,800
|
|
|
88,390
|
|
||
Total current assets
|
|
545,843
|
|
|
509,638
|
|
||
Other long-term assets
|
|
|
|
|
|
|
||
Regulatory assets
|
|
769,699
|
|
|
780,907
|
|
||
Other
|
|
98,295
|
|
|
91,529
|
|
||
Total other long-term assets
|
|
867,994
|
|
|
872,436
|
|
||
Total assets
|
|
$
|
5,710,569
|
|
|
$
|
5,630,613
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
||
Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 16,142,216 shares at March 31, 2018 and December 31, 2017)
|
|
$
|
107,634
|
|
|
$
|
107,634
|
|
Premium on capital stock
|
|
614,667
|
|
|
614,675
|
|
||
Retained earnings
|
|
1,125,842
|
|
|
1,124,193
|
|
||
Accumulated other comprehensive income (loss), net of taxes
|
|
(1,188
|
)
|
|
(1,219
|
)
|
||
Common stock equity
|
|
1,846,955
|
|
|
1,845,283
|
|
||
Cumulative preferred stock — not subject to mandatory redemption
|
|
34,293
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
1,318,654
|
|
|
1,318,516
|
|
||
Total capitalization
|
|
3,199,902
|
|
|
3,198,092
|
|
||
Commitments and contingencies (Note 3)
|
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
|
||
Current portion of long-term debt
|
|
49,973
|
|
|
49,963
|
|
||
Short-term borrowings from non-affiliates
|
|
121,983
|
|
|
4,999
|
|
||
Accounts payable
|
|
142,399
|
|
|
159,610
|
|
||
Interest and preferred dividends payable
|
|
26,204
|
|
|
22,575
|
|
||
Taxes accrued, including revenue taxes
|
|
166,465
|
|
|
199,101
|
|
||
Regulatory liabilities
|
|
6,933
|
|
|
3,401
|
|
||
Other
|
|
59,875
|
|
|
59,456
|
|
||
Total current liabilities
|
|
573,832
|
|
|
499,105
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
||
Deferred income taxes
|
|
393,089
|
|
|
394,041
|
|
||
Regulatory liabilities
|
|
888,160
|
|
|
877,369
|
|
||
Unamortized tax credits
|
|
91,936
|
|
|
90,369
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
465,626
|
|
|
472,948
|
|
||
Other
|
|
98,024
|
|
|
98,689
|
|
||
Total deferred credits and other liabilities
|
|
1,936,835
|
|
|
1,933,416
|
|
||
Total capitalization and liabilities
|
|
$
|
5,710,569
|
|
|
$
|
5,630,613
|
|
|
|
Common stock
|
|
Premium
on
capital
|
|
Retained
|
|
Accumulated
other
comprehensive
|
|
|
|||||||||||||
(in thousands)
|
|
Shares
|
|
Amount
|
|
stock
|
|
earnings
|
|
income (loss)
|
|
Total
|
|||||||||||
Balance, December 31, 2017
|
|
16,142
|
|
|
$
|
107,634
|
|
|
$
|
614,675
|
|
|
$
|
1,124,193
|
|
|
$
|
(1,219
|
)
|
|
$
|
1,845,283
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,475
|
|
|
—
|
|
|
27,475
|
|
|||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
31
|
|
|||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,826
|
)
|
|
—
|
|
|
(25,826
|
)
|
|||||
Common stock issuance expenses
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Balance, March 31, 2018
|
|
16,142
|
|
|
$
|
107,634
|
|
|
$
|
614,667
|
|
|
$
|
1,125,842
|
|
|
$
|
(1,188
|
)
|
|
$
|
1,846,955
|
|
Balance, December 31, 2016
|
|
16,020
|
|
|
$
|
106,818
|
|
|
$
|
601,491
|
|
|
$
|
1,091,800
|
|
|
$
|
(322
|
)
|
|
$
|
1,799,787
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,465
|
|
|
—
|
|
|
21,465
|
|
|||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
459
|
|
|
459
|
|
|||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,942
|
)
|
|
—
|
|
|
(21,942
|
)
|
|||||
Balance, March 31, 2017
|
|
16,020
|
|
|
$
|
106,818
|
|
|
$
|
601,491
|
|
|
$
|
1,091,323
|
|
|
$
|
137
|
|
|
$
|
1,799,769
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
27,974
|
|
|
$
|
21,964
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||
Depreciation of property, plant and equipment
|
|
50,466
|
|
|
48,216
|
|
||
Other amortization
|
|
5,344
|
|
|
1,949
|
|
||
Deferred income taxes
|
|
(1,580
|
)
|
|
11,064
|
|
||
Allowance for equity funds used during construction
|
|
(3,294
|
)
|
|
(2,399
|
)
|
||
Other
|
|
2,681
|
|
|
436
|
|
||
Changes in assets and liabilities
|
|
|
|
|
|
|
||
Increase in accounts receivable
|
|
(15,037
|
)
|
|
(7,328
|
)
|
||
Decrease (increase) in accrued unbilled revenues
|
|
7,419
|
|
|
(5,939
|
)
|
||
Increase in fuel oil stock
|
|
(1,850
|
)
|
|
(7,444
|
)
|
||
Increase in materials and supplies
|
|
(1,295
|
)
|
|
(3,366
|
)
|
||
Decrease (increase) in regulatory assets
|
|
(16,900
|
)
|
|
5,909
|
|
||
Increase in accounts payable
|
|
5,143
|
|
|
17,231
|
|
||
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
|
(32,866
|
)
|
|
(43,984
|
)
|
||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability
|
|
(938
|
)
|
|
264
|
|
||
Change in other assets and liabilities
|
|
4,513
|
|
|
(4,694
|
)
|
||
Net cash provided by operating activities
|
|
29,780
|
|
|
31,879
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(114,457
|
)
|
|
(84,712
|
)
|
||
Contributions in aid of construction
|
|
4,330
|
|
|
10,650
|
|
||
Other
|
|
603
|
|
|
2,702
|
|
||
Net cash used in investing activities
|
|
(109,524
|
)
|
|
(71,360
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
||
Common stock dividends
|
|
(25,826
|
)
|
|
(21,942
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(499
|
)
|
|
(499
|
)
|
||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
116,984
|
|
|
1,500
|
|
||
Other
|
|
(33
|
)
|
|
(657
|
)
|
||
Net cash provided by (used in) financing activities
|
|
90,626
|
|
|
(21,598
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
|
10,882
|
|
|
(61,079
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
12,517
|
|
|
74,286
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
23,399
|
|
|
$
|
13,207
|
|
•
|
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)
|
As previously filed
|
Adjustment from adoption of ASU No. 2017-07
|
As currently reported
|
||||||
Three months ended March 31, 2017
|
|
|
|
||||||
HEI Condensed Consolidated Income Statement
|
|
||||||||
Expenses
|
|
|
|
||||||
Electric utility
|
$
|
469,673
|
|
$
|
(1,423
|
)
|
$
|
468,250
|
|
Bank
|
48,696
|
|
(195
|
)
|
48,501
|
|
|||
Other
|
5,331
|
|
(258
|
)
|
5,073
|
|
|||
Total expenses
|
523,700
|
|
(1,876
|
)
|
521,824
|
|
|||
Operating income
|
|
|
|
||||||
Electric utility
|
48,938
|
|
1,423
|
|
50,361
|
|
|||
Bank
|
24,160
|
|
195
|
|
24,355
|
|
|||
Other
|
(5,236
|
)
|
258
|
|
(4,978
|
)
|
|||
Total operating income
|
67,862
|
|
1,876
|
|
69,738
|
|
|||
Retirement defined benefits expense--other than service costs
|
—
|
|
(1,876
|
)
|
(1,876
|
)
|
|||
Hawaiian Electric Condensed Consolidated Income Statement
|
|||||||||
Other operation and maintenance
|
100,240
|
|
(1,423
|
)
|
98,817
|
|
|||
Total expense
|
469,673
|
|
(1,423
|
)
|
468,250
|
|
|||
Operating income
|
48,938
|
|
1,423
|
|
50,361
|
|
|||
Retirement defined benefits expense--other than service costs
|
—
|
|
(1,423
|
)
|
(1,423
|
)
|
|||
Hawaiian Electric Condensed Consolidating Income Statement (in Note 3)
|
|
|
|
||||||
Hawaiian Electric (parent only)
|
|
|
|
||||||
Other operation and maintenance
|
67,278
|
|
(1,285
|
)
|
65,993
|
|
|||
Total expense
|
333,188
|
|
(1,285
|
)
|
331,903
|
|
|||
Operating income
|
29,655
|
|
1,285
|
|
30,940
|
|
|||
Retirement defined benefits expense--other than service costs
|
—
|
|
(1,285
|
)
|
(1,285
|
)
|
|||
Hawaii Electric Light
|
|
|
|
||||||
Other operation and maintenance
|
15,516
|
|
83
|
|
15,599
|
|
|||
Total expense
|
68,497
|
|
83
|
|
68,580
|
|
|||
Operating income
|
10,485
|
|
(83
|
)
|
10,402
|
|
|||
Retirement defined benefits expense--other than service costs
|
—
|
|
83
|
|
83
|
|
|||
Maui Electric
|
|
|
|
||||||
Other operation and maintenance
|
17,446
|
|
(221
|
)
|
17,225
|
|
|||
Total expense
|
67,988
|
|
(221
|
)
|
67,767
|
|
|||
Operating income
|
8,805
|
|
221
|
|
9,026
|
|
|||
Retirement defined benefits expense--other than service costs
|
—
|
|
(221
|
)
|
(221
|
)
|
|||
ASB Statements of Income Data (in Note 4)
|
|
|
|||||||
Compensation and employee benefits
|
23,237
|
|
(195
|
)
|
23,042
|
|
|||
Other expense
|
4,311
|
|
195
|
|
4,506
|
|
(in thousands)
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
||||||||
Three months ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
570,414
|
|
|
$
|
75,419
|
|
|
$
|
41
|
|
|
$
|
645,874
|
|
Intersegment revenues (eliminations)
|
|
13
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
||||
Revenues
|
|
$
|
570,427
|
|
|
$
|
75,419
|
|
|
$
|
28
|
|
|
$
|
645,874
|
|
Income (loss) before income taxes
|
|
$
|
37,149
|
|
|
$
|
24,500
|
|
|
$
|
(8,373
|
)
|
|
$
|
53,276
|
|
Income taxes (benefit)
|
|
9,175
|
|
|
5,540
|
|
|
(2,159
|
)
|
|
12,556
|
|
||||
Net income (loss)
|
|
27,974
|
|
|
18,960
|
|
|
(6,214
|
)
|
|
40,720
|
|
||||
Preferred stock dividends of subsidiaries
|
|
499
|
|
|
—
|
|
|
(26
|
)
|
|
473
|
|
||||
Net income (loss) for common stock
|
|
$
|
27,475
|
|
|
$
|
18,960
|
|
|
$
|
(6,188
|
)
|
|
$
|
40,247
|
|
Total assets (at March 31, 2018)
|
|
$
|
5,710,569
|
|
|
$
|
6,889,445
|
|
|
$
|
102,704
|
|
|
$
|
12,702,718
|
|
Three months ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
518,566
|
|
|
$
|
72,856
|
|
|
$
|
140
|
|
|
$
|
591,562
|
|
Intersegment revenues (eliminations)
|
|
45
|
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
||||
Revenues
|
|
$
|
518,611
|
|
|
$
|
72,856
|
|
|
$
|
95
|
|
|
$
|
591,562
|
|
Income before income taxes
|
|
$
|
34,722
|
|
|
$
|
24,160
|
|
|
$
|
(7,300
|
)
|
|
$
|
51,582
|
|
Income taxes
|
|
12,758
|
|
|
8,347
|
|
|
(4,189
|
)
|
|
16,916
|
|
||||
Net income
|
|
21,964
|
|
|
15,813
|
|
|
(3,111
|
)
|
|
34,666
|
|
||||
Preferred stock dividends of subsidiaries
|
|
499
|
|
|
—
|
|
|
(26
|
)
|
|
473
|
|
||||
Net income for common stock
|
|
$
|
21,465
|
|
|
$
|
15,813
|
|
|
$
|
(3,085
|
)
|
|
$
|
34,193
|
|
Total assets (at December 31, 2017)
|
|
$
|
5,630,613
|
|
|
$
|
6,798,659
|
|
|
$
|
104,888
|
|
|
$
|
12,534,160
|
|
|
|
Three months ended March 31
|
||||||
(in millions)
|
|
2018
|
|
2017
|
||||
Kalaeloa
|
|
$
|
40
|
|
|
$
|
40
|
|
AES Hawaii
|
|
37
|
|
|
29
|
|
||
HPOWER
|
|
15
|
|
|
17
|
|
||
Puna Geothermal Venture
|
|
11
|
|
|
8
|
|
||
Hamakua Energy
|
|
7
|
|
|
7
|
|
||
Other IPPs
1
|
|
30
|
|
|
26
|
|
||
Total IPPs
|
|
$
|
140
|
|
|
$
|
127
|
|
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 2017 and 2018.
|
•
|
Maui Electric's RAM revenues in 2017 and 2018 were below the RAM Cap.
|
•
|
Hawaii Electric Light’s RAM revenues were below the RAM Cap in 2017; however, the 2018 RAM revenues were limited to the RAM Cap.
|
(in millions)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
||||||
2018 Annual incremental RAM adjusted revenues
|
|
$
|
13.8
|
|
|
$
|
3.4
|
|
|
$
|
2.3
|
|
Annual change in accrued RBA balance as of December 31, 2017 (and associated revenue taxes)
|
|
$
|
6.6
|
|
|
$
|
0.7
|
|
|
$
|
3.2
|
|
2017 Tax Reform Act Adjustment
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2.4
|
)
|
Net annual incremental amount to be collected under the tariffs
|
|
$
|
20.4
|
|
|
$
|
4.1
|
|
|
$
|
3.1
|
|
•
|
Service Quality performance incentives are measured on a calendar-year basis beginning in 2018.
|
•
|
Service Reliability Performance measured by System Average Interruption Duration and Frequency Indexes (penalties only). Target performance is based on each utility’s historical
10
-year average performance with a deadband of one standard deviation. The maximum penalty for each performance index is
20
basis points applied to the common equity share of each respective utility’s rate base (or approximately
$6.2 million
penalty for both in total for the three utilities).
|
•
|
Call Center Performance measured by the percentage of calls answered within 30 seconds. Target performance is based on the annual average performance for each utility for the most recent 8 quarters with a deadband of
3%
above and below the target. The maximum penalty or incentive is
8
basis points applied to the common equity share of each respective utility’s rate base (or approximately
$1.2 million
penalty or incentive in total for the three utilities).
|
•
|
Demand Response measured by the demand response resources acquired in 2018. The award is equal to
5%
of the total of the annual maintenance cost for cost-effective demand response capability contracted with aggregators by December 31, 2018. The maximum award is
$0.5 million
for the three utilities in total and there are
no
penalties. This incentive applies to one-time performance in 2018 only.
|
•
|
Procurement of low-cost variable renewable resources through the request for proposal process in 2018 measured by comparison of the procurement price to target prices. The incentive is
20%
of savings determined by comparing procured price to a target of
11.5 cents
per kilowatt-hour for renewable projects with storage capability and
9.5 cents
per kilowatt-hour for energy-only renewable projects. This incentive has a cap of
$3.5 million
for the three utilities in total and has
no
penalty.
|
•
|
Greater cost control and reduced rate volatility;
|
•
|
Efficient investment and allocation of resources regardless of classification as capital or operating expense;
|
•
|
Fair distribution of risks between utilities and customers; and
|
•
|
Fulfillment of State policy goals.
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Revenues
|
|
$
|
401,180
|
|
|
87,933
|
|
|
81,356
|
|
|
—
|
|
|
(42
|
)
|
|
$
|
570,427
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
114,498
|
|
|
18,487
|
|
|
33,983
|
|
|
—
|
|
|
—
|
|
|
166,968
|
|
||
Purchased power
|
|
107,370
|
|
|
23,834
|
|
|
8,706
|
|
|
—
|
|
|
—
|
|
|
139,910
|
|
||
Other operation and maintenance
|
|
72,940
|
|
|
16,098
|
|
|
18,572
|
|
|
—
|
|
|
—
|
|
|
107,610
|
|
||
Depreciation
|
|
34,439
|
|
|
10,055
|
|
|
5,972
|
|
|
—
|
|
|
—
|
|
|
50,466
|
|
||
Taxes, other than income taxes
|
|
38,167
|
|
|
8,212
|
|
|
7,725
|
|
|
—
|
|
|
—
|
|
|
54,104
|
|
||
Total expenses
|
|
367,414
|
|
|
76,686
|
|
|
74,958
|
|
|
—
|
|
|
—
|
|
|
519,058
|
|
||
Operating income
|
|
33,766
|
|
|
11,247
|
|
|
6,398
|
|
|
—
|
|
|
(42
|
)
|
|
51,369
|
|
||
Allowance for equity funds used during construction
|
|
2,887
|
|
|
111
|
|
|
296
|
|
|
—
|
|
|
—
|
|
|
3,294
|
|
||
Equity in earnings of subsidiaries
|
|
9,325
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,325
|
)
|
|
—
|
|
||
Retirement defined benefits expense—other than service costs
|
|
(1,062
|
)
|
|
(103
|
)
|
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
(1,264
|
)
|
||
Interest expense and other charges, net
|
|
(12,495
|
)
|
|
(2,907
|
)
|
|
(2,334
|
)
|
|
—
|
|
|
42
|
|
|
(17,694
|
)
|
||
Allowance for borrowed funds used during construction
|
|
1,238
|
|
|
64
|
|
|
142
|
|
|
—
|
|
|
—
|
|
|
1,444
|
|
||
Income before income taxes
|
|
33,659
|
|
|
8,412
|
|
|
4,403
|
|
|
—
|
|
|
(9,325
|
)
|
|
37,149
|
|
||
Income taxes
|
|
5,914
|
|
|
2,177
|
|
|
1,084
|
|
|
—
|
|
|
—
|
|
|
9,175
|
|
||
Net income
|
|
27,745
|
|
|
6,235
|
|
|
3,319
|
|
|
—
|
|
|
(9,325
|
)
|
|
27,974
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
134
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
229
|
|
||
Net income attributable to Hawaiian Electric
|
|
27,745
|
|
|
6,101
|
|
|
3,224
|
|
|
—
|
|
|
(9,325
|
)
|
|
27,745
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
||
Net income for common stock
|
|
$
|
27,475
|
|
|
6,101
|
|
|
3,224
|
|
|
—
|
|
|
(9,325
|
)
|
|
$
|
27,475
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income for common stock
|
|
$
|
27,475
|
|
|
6,101
|
|
|
3,224
|
|
|
—
|
|
|
(9,325
|
)
|
|
$
|
27,475
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
|
|
4,653
|
|
|
675
|
|
|
562
|
|
|
—
|
|
|
(1,237
|
)
|
|
4,653
|
|
||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(4,622
|
)
|
|
(675
|
)
|
|
(562
|
)
|
|
—
|
|
|
1,237
|
|
|
(4,622
|
)
|
||
Other comprehensive income, net of taxes
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
27,506
|
|
|
6,101
|
|
|
3,224
|
|
|
—
|
|
|
(9,325
|
)
|
|
$
|
27,506
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Revenues
|
|
$
|
362,843
|
|
|
78,982
|
|
|
76,793
|
|
|
—
|
|
|
(7
|
)
|
|
$
|
518,611
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
98,001
|
|
|
17,257
|
|
|
29,012
|
|
|
—
|
|
|
—
|
|
|
144,270
|
|
||
Purchased power
|
|
100,147
|
|
|
18,589
|
|
|
8,388
|
|
|
—
|
|
|
—
|
|
|
127,124
|
|
||
Other operation and maintenance
|
|
65,993
|
|
|
15,599
|
|
|
17,225
|
|
|
—
|
|
|
—
|
|
|
98,817
|
|
||
Depreciation
|
|
32,722
|
|
|
9,685
|
|
|
5,809
|
|
|
—
|
|
|
—
|
|
|
48,216
|
|
||
Taxes, other than income taxes
|
|
35,040
|
|
|
7,450
|
|
|
7,333
|
|
|
—
|
|
|
—
|
|
|
49,823
|
|
||
Total expenses
|
|
331,903
|
|
|
68,580
|
|
|
67,767
|
|
|
—
|
|
|
—
|
|
|
468,250
|
|
||
Operating income
|
|
30,940
|
|
|
10,402
|
|
|
9,026
|
|
|
—
|
|
|
(7
|
)
|
|
50,361
|
|
||
Allowance for equity funds used during construction
|
|
2,056
|
|
|
115
|
|
|
228
|
|
|
—
|
|
|
—
|
|
|
2,399
|
|
||
Equity in earnings of subsidiaries
|
|
8,603
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,603
|
)
|
|
—
|
|
||
Retirement defined benefits expense—other than service costs
|
|
(1,285
|
)
|
|
83
|
|
|
(221
|
)
|
|
—
|
|
|
—
|
|
|
(1,423
|
)
|
||
Interest expense and other charges, net
|
|
(12,057
|
)
|
|
(3,004
|
)
|
|
(2,450
|
)
|
|
—
|
|
|
7
|
|
|
(17,504
|
)
|
||
Allowance for borrowed funds used during construction
|
|
749
|
|
|
45
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
889
|
|
||
Income before income taxes
|
|
29,006
|
|
|
7,641
|
|
|
6,678
|
|
|
—
|
|
|
(8,603
|
)
|
|
34,722
|
|
||
Income taxes
|
|
7,271
|
|
|
2,923
|
|
|
2,564
|
|
|
—
|
|
|
—
|
|
|
12,758
|
|
||
Net income
|
|
21,735
|
|
|
4,718
|
|
|
4,114
|
|
|
—
|
|
|
(8,603
|
)
|
|
21,964
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
134
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
229
|
|
||
Net income attributable to Hawaiian Electric
|
|
21,735
|
|
|
4,584
|
|
|
4,019
|
|
|
—
|
|
|
(8,603
|
)
|
|
21,735
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
||
Net income for common stock
|
|
$
|
21,465
|
|
|
4,584
|
|
|
4,019
|
|
|
—
|
|
|
(8,603
|
)
|
|
$
|
21,465
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income
for common stock
|
|
$
|
21,465
|
|
|
4,584
|
|
|
4,019
|
|
|
—
|
|
|
(8,603
|
)
|
|
$
|
21,465
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Derivatives qualifying as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Reclassification adjustment to net income, net of taxes
|
|
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
|
|
3,618
|
|
|
503
|
|
|
466
|
|
|
—
|
|
|
(969
|
)
|
|
3,618
|
|
||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(3,613
|
)
|
|
(503
|
)
|
|
(467
|
)
|
|
—
|
|
|
970
|
|
|
(3,613
|
)
|
||
Other comprehensive income (loss), net of taxes
|
|
459
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
459
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
21,924
|
|
|
4,584
|
|
|
4,018
|
|
|
—
|
|
|
(8,602
|
)
|
|
$
|
21,924
|
|
(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
|
|
$
|
44,001
|
|
|
5,923
|
|
|
3,016
|
|
|
—
|
|
|
—
|
|
|
$
|
52,940
|
|
Plant and equipment
|
|
4,176,161
|
|
|
1,212,692
|
|
|
1,063,362
|
|
|
—
|
|
|
—
|
|
|
6,452,215
|
|
||
Less accumulated depreciation
|
|
(1,472,313
|
)
|
|
(534,083
|
)
|
|
(501,546
|
)
|
|
—
|
|
|
—
|
|
|
(2,507,942
|
)
|
||
Construction in progress
|
|
256,058
|
|
|
10,150
|
|
|
25,729
|
|
|
—
|
|
|
—
|
|
|
291,937
|
|
||
Utility property, plant and equipment, net
|
|
3,003,907
|
|
|
694,682
|
|
|
590,561
|
|
|
—
|
|
|
—
|
|
|
4,289,150
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation
|
|
5,935
|
|
|
115
|
|
|
1,532
|
|
|
—
|
|
|
—
|
|
|
7,582
|
|
||
Total property, plant and equipment, net
|
|
3,009,842
|
|
|
694,797
|
|
|
592,093
|
|
|
—
|
|
|
—
|
|
|
4,296,732
|
|
||
Investment in wholly owned subsidiaries, at equity
|
|
559,511
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(559,511
|
)
|
|
—
|
|
||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
11,988
|
|
|
5,080
|
|
|
6,230
|
|
|
101
|
|
|
—
|
|
|
23,399
|
|
||
Advances to affiliates
|
|
3,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,000
|
)
|
|
—
|
|
||
Customer accounts receivable, net
|
|
97,943
|
|
|
24,117
|
|
|
19,373
|
|
|
—
|
|
|
—
|
|
|
141,433
|
|
||
Accrued unbilled revenues, net
|
|
70,618
|
|
|
15,182
|
|
|
13,835
|
|
|
—
|
|
|
—
|
|
|
99,635
|
|
||
Other accounts receivable, net
|
|
10,019
|
|
|
1,973
|
|
|
1,314
|
|
|
—
|
|
|
(9,353
|
)
|
|
3,953
|
|
||
Fuel oil stock, at average cost
|
|
66,294
|
|
|
9,501
|
|
|
12,928
|
|
|
—
|
|
|
—
|
|
|
88,723
|
|
||
Materials and supplies, at average cost
|
|
29,420
|
|
|
8,591
|
|
|
17,681
|
|
|
—
|
|
|
—
|
|
|
55,692
|
|
||
Prepayments and other
|
|
22,811
|
|
|
3,661
|
|
|
3,736
|
|
|
—
|
|
|
—
|
|
|
30,208
|
|
||
Regulatory assets
|
|
87,449
|
|
|
6,698
|
|
|
8,653
|
|
|
—
|
|
|
—
|
|
|
102,800
|
|
||
Total current assets
|
|
399,542
|
|
|
74,803
|
|
|
83,750
|
|
|
101
|
|
|
(12,353
|
)
|
|
545,843
|
|
||
Other long-term assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Regulatory assets
|
|
549,020
|
|
|
120,529
|
|
|
100,150
|
|
|
—
|
|
|
—
|
|
|
769,699
|
|
||
Other
|
|
63,792
|
|
|
17,751
|
|
|
16,752
|
|
|
—
|
|
|
—
|
|
|
98,295
|
|
||
Total other long-term assets
|
|
612,812
|
|
|
138,280
|
|
|
116,902
|
|
|
—
|
|
|
—
|
|
|
867,994
|
|
||
Total assets
|
|
$
|
4,581,707
|
|
|
907,880
|
|
|
792,745
|
|
|
101
|
|
|
(571,864
|
)
|
|
$
|
5,710,569
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock equity
|
|
$
|
1,846,955
|
|
|
288,927
|
|
|
270,483
|
|
|
101
|
|
|
(559,511
|
)
|
|
$
|
1,846,955
|
|
Cumulative preferred stock—not subject to mandatory redemption
|
|
22,293
|
|
|
7,000
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
925,065
|
|
|
202,725
|
|
|
190,864
|
|
|
—
|
|
|
—
|
|
|
1,318,654
|
|
||
Total capitalization
|
|
2,794,313
|
|
|
498,652
|
|
|
466,347
|
|
|
101
|
|
|
(559,511
|
)
|
|
3,199,902
|
|
||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Current portion of long-term debt
|
|
29,984
|
|
|
10,994
|
|
|
8,995
|
|
|
—
|
|
|
—
|
|
|
49,973
|
|
||
Short-term borrowings from non-affiliates
|
|
121,983
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
121,983
|
|
||
Short-term borrowings from affiliate
|
|
—
|
|
|
3,000
|
|
|
—
|
|
|
—
|
|
|
(3,000
|
)
|
|
—
|
|
||
Accounts payable
|
|
102,402
|
|
|
17,867
|
|
|
22,130
|
|
|
—
|
|
|
—
|
|
|
142,399
|
|
||
Interest and preferred dividends payable
|
|
18,422
|
|
|
4,006
|
|
|
3,791
|
|
|
—
|
|
|
(15
|
)
|
|
26,204
|
|
||
Taxes accrued
|
|
107,968
|
|
|
33,213
|
|
|
25,284
|
|
|
—
|
|
|
—
|
|
|
166,465
|
|
||
Regulatory liabilities
|
|
2,612
|
|
|
2,387
|
|
|
1,934
|
|
|
—
|
|
|
—
|
|
|
6,933
|
|
||
Other
|
|
45,137
|
|
|
9,127
|
|
|
14,949
|
|
|
—
|
|
|
(9,338
|
)
|
|
59,875
|
|
||
Total current liabilities
|
|
428,508
|
|
|
80,594
|
|
|
77,083
|
|
|
—
|
|
|
(12,353
|
)
|
|
573,832
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Deferred income taxes
|
|
281,581
|
|
|
55,093
|
|
|
56,415
|
|
|
—
|
|
|
—
|
|
|
393,089
|
|
||
Regulatory liabilities
|
|
620,758
|
|
|
172,193
|
|
|
95,209
|
|
|
—
|
|
|
—
|
|
|
888,160
|
|
||
Unamortized tax credits
|
|
60,318
|
|
|
16,315
|
|
|
15,303
|
|
|
—
|
|
|
—
|
|
|
91,936
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
335,674
|
|
|
65,340
|
|
|
64,612
|
|
|
—
|
|
|
—
|
|
|
465,626
|
|
||
Other
|
|
60,555
|
|
|
19,693
|
|
|
17,776
|
|
|
—
|
|
|
—
|
|
|
98,024
|
|
||
Total deferred credits and other liabilities
|
|
1,358,886
|
|
|
328,634
|
|
|
249,315
|
|
|
—
|
|
|
—
|
|
|
1,936,835
|
|
||
Total capitalization and liabilities
|
|
$
|
4,581,707
|
|
|
907,880
|
|
|
792,745
|
|
|
101
|
|
|
(571,864
|
)
|
|
$
|
5,710,569
|
|
(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
|
|
$
|
43,972
|
|
|
6,189
|
|
|
3,016
|
|
|
—
|
|
|
—
|
|
|
$
|
53,177
|
|
Plant and equipment
|
|
4,140,892
|
|
|
1,206,776
|
|
|
1,053,372
|
|
|
—
|
|
|
—
|
|
|
6,401,040
|
|
||
Less accumulated depreciation
|
|
(1,451,612
|
)
|
|
(528,024
|
)
|
|
(496,716
|
)
|
|
—
|
|
|
—
|
|
|
(2,476,352
|
)
|
||
Construction in progress
|
|
231,571
|
|
|
8,182
|
|
|
23,341
|
|
|
—
|
|
|
—
|
|
|
263,094
|
|
||
Utility property, plant and equipment, net
|
|
2,964,823
|
|
|
693,123
|
|
|
583,013
|
|
|
—
|
|
|
—
|
|
|
4,240,959
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation
|
|
5,933
|
|
|
115
|
|
|
1,532
|
|
|
—
|
|
|
—
|
|
|
7,580
|
|
||
Total property, plant and equipment, net
|
|
2,970,756
|
|
|
693,238
|
|
|
584,545
|
|
|
—
|
|
|
—
|
|
|
4,248,539
|
|
||
Investment in wholly owned subsidiaries,
at equity
|
|
557,013
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(557,013
|
)
|
|
—
|
|
||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
2,059
|
|
|
4,025
|
|
|
6,332
|
|
|
101
|
|
|
—
|
|
|
12,517
|
|
||
Advances to affiliates
|
|
—
|
|
|
—
|
|
|
12,000
|
|
|
—
|
|
|
(12,000
|
)
|
|
—
|
|
||
Customer accounts receivable, net
|
|
86,987
|
|
|
22,510
|
|
|
18,392
|
|
|
—
|
|
|
—
|
|
|
127,889
|
|
||
Accrued unbilled revenues, net
|
|
77,176
|
|
|
15,940
|
|
|
13,938
|
|
|
—
|
|
|
—
|
|
|
107,054
|
|
||
Other accounts receivable, net
|
|
11,376
|
|
|
2,268
|
|
|
1,210
|
|
|
—
|
|
|
(7,691
|
)
|
|
7,163
|
|
||
Fuel oil stock, at average cost
|
|
64,972
|
|
|
8,698
|
|
|
13,203
|
|
|
—
|
|
|
—
|
|
|
86,873
|
|
||
Materials and supplies, at average cost
|
|
28,325
|
|
|
8,041
|
|
|
18,031
|
|
|
—
|
|
|
—
|
|
|
54,397
|
|
||
Prepayments and other
|
|
17,928
|
|
|
4,514
|
|
|
2,913
|
|
|
—
|
|
|
—
|
|
|
25,355
|
|
||
Regulatory assets
|
|
76,203
|
|
|
5,038
|
|
|
7,149
|
|
|
—
|
|
|
—
|
|
|
88,390
|
|
||
Total current assets
|
|
365,026
|
|
|
71,034
|
|
|
93,168
|
|
|
101
|
|
|
(19,691
|
)
|
|
509,638
|
|
||
Other long-term assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Regulatory assets
|
|
557,464
|
|
|
122,783
|
|
|
100,660
|
|
|
—
|
|
|
—
|
|
|
780,907
|
|
||
Other
|
|
60,157
|
|
|
16,311
|
|
|
15,061
|
|
|
—
|
|
|
—
|
|
|
91,529
|
|
||
Total other long-term assets
|
|
617,621
|
|
|
139,094
|
|
|
115,721
|
|
|
—
|
|
|
—
|
|
|
872,436
|
|
||
Total assets
|
|
$
|
4,510,416
|
|
|
903,366
|
|
|
793,434
|
|
|
101
|
|
|
(576,704
|
)
|
|
$
|
5,630,613
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock equity
|
|
$
|
1,845,283
|
|
|
286,647
|
|
|
270,265
|
|
|
101
|
|
|
(557,013
|
)
|
|
$
|
1,845,283
|
|
Cumulative preferred stock—not subject to mandatory redemption
|
|
22,293
|
|
|
7,000
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
924,979
|
|
|
202,701
|
|
|
190,836
|
|
|
—
|
|
|
—
|
|
|
1,318,516
|
|
||
Total capitalization
|
|
2,792,555
|
|
|
496,348
|
|
|
466,101
|
|
|
101
|
|
|
(557,013
|
)
|
|
3,198,092
|
|
||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Current portion of long-term debt
|
|
29,978
|
|
|
10,992
|
|
|
8,993
|
|
|
—
|
|
|
—
|
|
|
49,963
|
|
||
Short-term borrowings-non-affiliate
|
|
4,999
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,999
|
|
||
Short-term borrowings-affiliate
|
|
12,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,000
|
)
|
|
—
|
|
||
Accounts payable
|
|
121,328
|
|
|
17,855
|
|
|
20,427
|
|
|
—
|
|
|
—
|
|
|
159,610
|
|
||
Interest and preferred dividends payable
|
|
15,677
|
|
|
4,174
|
|
|
2,735
|
|
|
—
|
|
|
(11
|
)
|
|
22,575
|
|
||
Taxes accrued
|
|
133,839
|
|
|
34,950
|
|
|
30,312
|
|
|
—
|
|
|
—
|
|
|
199,101
|
|
||
Regulatory liabilities
|
|
607
|
|
|
1,245
|
|
|
1,549
|
|
|
—
|
|
|
—
|
|
|
3,401
|
|
||
Other
|
|
43,121
|
|
|
9,818
|
|
|
14,197
|
|
|
—
|
|
|
(7,680
|
)
|
|
59,456
|
|
||
Total current liabilities
|
|
361,549
|
|
|
79,034
|
|
|
78,213
|
|
|
—
|
|
|
(19,691
|
)
|
|
499,105
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Deferred income taxes
|
|
281,223
|
|
|
56,955
|
|
|
55,863
|
|
|
—
|
|
|
—
|
|
|
394,041
|
|
||
Regulatory liabilities
|
|
613,329
|
|
|
169,139
|
|
|
94,901
|
|
|
—
|
|
|
—
|
|
|
877,369
|
|
||
Unamortized tax credits
|
|
59,039
|
|
|
16,167
|
|
|
15,163
|
|
|
—
|
|
|
—
|
|
|
90,369
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
340,983
|
|
|
66,447
|
|
|
65,518
|
|
|
—
|
|
|
—
|
|
|
472,948
|
|
||
Other
|
|
61,738
|
|
|
19,276
|
|
|
17,675
|
|
|
—
|
|
|
—
|
|
|
98,689
|
|
||
Total deferred credits and other liabilities
|
|
1,356,312
|
|
|
327,984
|
|
|
249,120
|
|
|
—
|
|
|
—
|
|
|
1,933,416
|
|
||
Total capitalization and liabilities
|
|
$
|
4,510,416
|
|
|
903,366
|
|
|
793,434
|
|
|
101
|
|
|
(576,704
|
)
|
|
$
|
5,630,613
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Balance, December 31, 2017
|
|
$
|
1,845,283
|
|
|
286,647
|
|
|
270,265
|
|
|
101
|
|
|
(557,013
|
)
|
|
$
|
1,845,283
|
|
Net income for common stock
|
|
27,475
|
|
|
6,101
|
|
|
3,224
|
|
|
—
|
|
|
(9,325
|
)
|
|
27,475
|
|
||
Other comprehensive income, net of taxes
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
||
Common stock dividends
|
|
(25,826
|
)
|
|
(3,821
|
)
|
|
(3,006
|
)
|
|
—
|
|
|
6,827
|
|
|
(25,826
|
)
|
||
Common stock issuance expenses
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
||
Balance, March 31, 2018
|
|
$
|
1,846,955
|
|
|
288,927
|
|
|
270,483
|
|
|
101
|
|
|
(559,511
|
)
|
|
$
|
1,846,955
|
|
(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
|
|
21,465
|
|
|
4,584
|
|
|
4,019
|
|
|
—
|
|
|
(8,603
|
)
|
|
21,465
|
|
||
Other comprehensive income (loss), net of taxes
|
|
459
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
459
|
|
||
Common stock dividends
|
|
(21,942
|
)
|
|
(3,874
|
)
|
|
(2,986
|
)
|
|
—
|
|
|
6,860
|
|
|
(21,942
|
)
|
||
Balance, March 31, 2017
|
|
$
|
1,799,769
|
|
|
292,001
|
|
|
260,586
|
|
|
101
|
|
|
(552,688
|
)
|
|
$
|
1,799,769
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income
|
|
$
|
27,745
|
|
|
6,235
|
|
|
3,319
|
|
|
—
|
|
|
(9,325
|
)
|
|
$
|
27,974
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Equity in earnings of subsidiaries
|
|
(9,350
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,325
|
|
|
(25
|
)
|
||
Common stock dividends received from subsidiaries
|
|
6,827
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,827
|
)
|
|
—
|
|
||
Depreciation of property, plant and equipment
|
|
34,439
|
|
|
10,055
|
|
|
5,972
|
|
|
—
|
|
|
—
|
|
|
50,466
|
|
||
Other amortization
|
|
3,237
|
|
|
1,554
|
|
|
553
|
|
|
—
|
|
|
—
|
|
|
5,344
|
|
||
Deferred income taxes
|
|
(271
|
)
|
|
(1,806
|
)
|
|
497
|
|
|
—
|
|
|
—
|
|
|
(1,580
|
)
|
||
Allowance for equity funds used during construction
|
|
(2,887
|
)
|
|
(111
|
)
|
|
(296
|
)
|
|
—
|
|
|
—
|
|
|
(3,294
|
)
|
||
Other
|
|
2,868
|
|
|
(103
|
)
|
|
(84
|
)
|
|
—
|
|
|
—
|
|
|
2,681
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Increase in accounts receivable
|
|
(13,255
|
)
|
|
(2,048
|
)
|
|
(1,396
|
)
|
|
—
|
|
|
1,662
|
|
|
(15,037
|
)
|
||
Decrease in accrued unbilled revenues
|
|
6,558
|
|
|
758
|
|
|
103
|
|
|
—
|
|
|
—
|
|
|
7,419
|
|
||
Decrease (increase) in fuel oil stock
|
|
(1,322
|
)
|
|
(803
|
)
|
|
275
|
|
|
—
|
|
|
—
|
|
|
(1,850
|
)
|
||
Decrease (increase) in materials and supplies
|
|
(1,095
|
)
|
|
(550
|
)
|
|
350
|
|
|
—
|
|
|
—
|
|
|
(1,295
|
)
|
||
Increase in regulatory assets
|
|
(13,256
|
)
|
|
(1,773
|
)
|
|
(1,871
|
)
|
|
—
|
|
|
—
|
|
|
(16,900
|
)
|
||
Increase (decrease) in accounts payable
|
|
(2,028
|
)
|
|
4,050
|
|
|
3,121
|
|
|
—
|
|
|
—
|
|
|
5,143
|
|
||
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
|
(25,892
|
)
|
|
(1,882
|
)
|
|
(5,532
|
)
|
|
—
|
|
|
440
|
|
|
(32,866
|
)
|
||
Decrease in defined benefit pension and other postretirement benefit plans liability
|
|
(592
|
)
|
|
(198
|
)
|
|
(148
|
)
|
|
—
|
|
|
—
|
|
|
(938
|
)
|
||
Change in other assets and liabilities
|
|
2,976
|
|
|
2,875
|
|
|
349
|
|
|
—
|
|
|
(1,662
|
)
|
|
4,538
|
|
||
Net cash provided by operating activities
|
|
14,702
|
|
|
16,253
|
|
|
5,212
|
|
|
—
|
|
|
(6,387
|
)
|
|
29,780
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(84,226
|
)
|
|
(15,161
|
)
|
|
(15,070
|
)
|
|
—
|
|
|
—
|
|
|
(114,457
|
)
|
||
Contributions in aid of construction
|
|
3,327
|
|
|
656
|
|
|
347
|
|
|
—
|
|
|
—
|
|
|
4,330
|
|
||
Other
|
|
269
|
|
|
264
|
|
|
510
|
|
|
—
|
|
|
(440
|
)
|
|
603
|
|
||
Advances (to) from affiliates
|
|
(3,000
|
)
|
|
—
|
|
|
12,000
|
|
|
—
|
|
|
(9,000
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
|
(83,630
|
)
|
|
(14,241
|
)
|
|
(2,213
|
)
|
|
—
|
|
|
(9,440
|
)
|
|
(109,524
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock dividends
|
|
(25,826
|
)
|
|
(3,821
|
)
|
|
(3,006
|
)
|
|
—
|
|
|
6,827
|
|
|
(25,826
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(270
|
)
|
|
(134
|
)
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
(499
|
)
|
||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
104,984
|
|
|
3,000
|
|
|
—
|
|
|
—
|
|
|
9,000
|
|
|
116,984
|
|
||
Other
|
|
(31
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
||
Net cash provided by (used in) financing activities
|
|
78,857
|
|
|
(957
|
)
|
|
(3,101
|
)
|
|
—
|
|
|
15,827
|
|
|
90,626
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
9,929
|
|
|
1,055
|
|
|
(102
|
)
|
|
—
|
|
|
—
|
|
|
10,882
|
|
||
Cash and cash equivalents, beginning of period
|
|
2,059
|
|
|
4,025
|
|
|
6,332
|
|
|
101
|
|
|
—
|
|
|
12,517
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
11,988
|
|
|
5,080
|
|
|
6,230
|
|
|
101
|
|
|
—
|
|
|
$
|
23,399
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries |
|
Consolidating
adjustments |
|
Hawaiian Electric
Consolidated |
||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income
|
|
$
|
21,735
|
|
|
4,718
|
|
|
4,114
|
|
|
—
|
|
|
(8,603
|
)
|
|
$
|
21,964
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Equity in earnings of subsidiaries
|
|
(8,628
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,603
|
|
|
(25
|
)
|
||
Common stock dividends received from subsidiaries
|
|
6,910
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,860
|
)
|
|
50
|
|
||
Depreciation of property, plant and equipment
|
|
32,722
|
|
|
9,685
|
|
|
5,809
|
|
|
—
|
|
|
—
|
|
|
48,216
|
|
||
Other amortization
|
|
914
|
|
|
442
|
|
|
593
|
|
|
—
|
|
|
—
|
|
|
1,949
|
|
||
Deferred income taxes
|
|
6,810
|
|
|
1,700
|
|
|
2,602
|
|
|
—
|
|
|
(48
|
)
|
|
11,064
|
|
||
Allowance for equity funds used during construction
|
|
(2,056
|
)
|
|
(115
|
)
|
|
(228
|
)
|
|
—
|
|
|
—
|
|
|
(2,399
|
)
|
||
Other
|
|
661
|
|
|
(138
|
)
|
|
(87
|
)
|
|
—
|
|
|
—
|
|
|
436
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Decrease (increase) in accounts receivable
|
|
(10,724
|
)
|
|
1,239
|
|
|
685
|
|
|
—
|
|
|
1,472
|
|
|
(7,328
|
)
|
||
Increase in accrued unbilled revenues
|
|
(4,577
|
)
|
|
(319
|
)
|
|
(1,043
|
)
|
|
—
|
|
|
—
|
|
|
(5,939
|
)
|
||
Decrease (increase) in fuel oil stock
|
|
(9,234
|
)
|
|
1,485
|
|
|
305
|
|
|
—
|
|
|
—
|
|
|
(7,444
|
)
|
||
Decrease (increase) in materials and supplies
|
|
(2,267
|
)
|
|
(1,114
|
)
|
|
15
|
|
|
—
|
|
|
—
|
|
|
(3,366
|
)
|
||
Decrease (increase) in regulatory assets
|
|
7,711
|
|
|
(677
|
)
|
|
(1,125
|
)
|
|
—
|
|
|
—
|
|
|
5,909
|
|
||
Increase (decrease) in accounts payable
|
|
21,943
|
|
|
(1,721
|
)
|
|
(2,991
|
)
|
|
—
|
|
|
—
|
|
|
17,231
|
|
||
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
|
(32,272
|
)
|
|
(5,352
|
)
|
|
(6,408
|
)
|
|
—
|
|
|
48
|
|
|
(43,984
|
)
|
||
Increase in defined benefit pension and other postretirement benefit plans liability
|
|
240
|
|
|
14
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
264
|
|
||
Change in other assets and liabilities
|
|
(4,249
|
)
|
|
805
|
|
|
197
|
|
|
—
|
|
|
(1,472
|
)
|
|
(4,719
|
)
|
||
Net cash provided by operating activities
|
|
25,639
|
|
|
10,652
|
|
|
2,448
|
|
|
—
|
|
|
(6,860
|
)
|
|
31,879
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(64,035
|
)
|
|
(12,434
|
)
|
|
(8,243
|
)
|
|
—
|
|
|
—
|
|
|
(84,712
|
)
|
||
Contributions in aid of construction
|
|
8,934
|
|
|
915
|
|
|
801
|
|
|
—
|
|
|
—
|
|
|
10,650
|
|
||
Other
|
|
2,352
|
|
|
78
|
|
|
272
|
|
|
—
|
|
|
—
|
|
|
2,702
|
|
||
Advances from affiliates
|
|
—
|
|
|
(3,000
|
)
|
|
7,500
|
|
|
—
|
|
|
(4,500
|
)
|
|
—
|
|
||
Net cash provided by (used in) investing activities
|
|
(52,749
|
)
|
|
(14,441
|
)
|
|
330
|
|
|
—
|
|
|
(4,500
|
)
|
|
(71,360
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common stock dividends
|
|
(21,942
|
)
|
|
(3,874
|
)
|
|
(2,986
|
)
|
|
—
|
|
|
6,860
|
|
|
(21,942
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(270
|
)
|
|
(134
|
)
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
(499
|
)
|
||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
(3,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,500
|
|
|
1,500
|
|
||
Other
|
|
(449
|
)
|
|
—
|
|
|
(208
|
)
|
|
—
|
|
|
—
|
|
|
(657
|
)
|
||
Net cash used in financing activities
|
|
(25,661
|
)
|
|
(4,008
|
)
|
|
(3,289
|
)
|
|
—
|
|
|
11,360
|
|
|
(21,598
|
)
|
||
Net decrease in cash and cash equivalents
|
|
(52,771
|
)
|
|
(7,797
|
)
|
|
(511
|
)
|
|
—
|
|
|
—
|
|
|
(61,079
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
61,388
|
|
|
10,749
|
|
|
2,048
|
|
|
101
|
|
|
—
|
|
|
74,286
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
8,617
|
|
|
2,952
|
|
|
1,537
|
|
|
101
|
|
|
—
|
|
|
$
|
13,207
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2018
|
|
2017
|
||||
Interest and dividend income
|
|
|
|
|
|
|
||
Interest and fees on loans
|
|
$
|
52,800
|
|
|
$
|
50,742
|
|
Interest and dividends on investment securities
|
|
9,202
|
|
|
6,980
|
|
||
Total interest and dividend income
|
|
62,002
|
|
|
57,722
|
|
||
Interest expense
|
|
|
|
|
|
|
||
Interest on deposit liabilities
|
|
2,957
|
|
|
2,103
|
|
||
Interest on other borrowings
|
|
496
|
|
|
816
|
|
||
Total interest expense
|
|
3,453
|
|
|
2,919
|
|
||
Net interest income
|
|
58,549
|
|
|
54,803
|
|
||
Provision for loan losses
|
|
3,541
|
|
|
3,907
|
|
||
Net interest income after provision for loan losses
|
|
55,008
|
|
|
50,896
|
|
||
Noninterest income
|
|
|
|
|
|
|
||
Fees from other financial services
|
|
4,654
|
|
|
5,610
|
|
||
Fee income on deposit liabilities
|
|
5,189
|
|
|
5,428
|
|
||
Fee income on other financial products
|
|
1,654
|
|
|
1,866
|
|
||
Bank-owned life insurance
|
|
871
|
|
|
983
|
|
||
Mortgage banking income
|
|
613
|
|
|
789
|
|
||
Other income, net
|
|
436
|
|
|
458
|
|
||
Total noninterest income
|
|
13,417
|
|
|
15,134
|
|
||
Noninterest expense
|
|
|
|
|
|
|
||
Compensation and employee benefits
|
|
24,440
|
|
|
23,042
|
|
||
Occupancy
|
|
4,280
|
|
|
4,154
|
|
||
Data processing
|
|
3,464
|
|
|
3,280
|
|
||
Services
|
|
3,047
|
|
|
2,360
|
|
||
Equipment
|
|
1,728
|
|
|
1,748
|
|
||
Office supplies, printing and postage
|
|
1,507
|
|
|
1,535
|
|
||
Marketing
|
|
645
|
|
|
517
|
|
||
FDIC insurance
|
|
713
|
|
|
728
|
|
||
Other expense
|
|
4,101
|
|
|
4,506
|
|
||
Total noninterest expense
|
|
43,925
|
|
|
41,870
|
|
||
Income before income taxes
|
|
24,500
|
|
|
24,160
|
|
||
Income taxes
|
|
5,540
|
|
|
8,347
|
|
||
Net income
|
|
$
|
18,960
|
|
|
$
|
15,813
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2018
|
|
2017
|
||||
Interest and dividend income
|
|
$
|
62,002
|
|
|
$
|
57,722
|
|
Noninterest income
|
|
13,417
|
|
|
15,134
|
|
||
*Revenues-Bank
|
|
75,419
|
|
|
72,856
|
|
||
Total interest expense
|
|
3,453
|
|
|
2,919
|
|
||
Provision for loan losses
|
|
3,541
|
|
|
3,907
|
|
||
Noninterest expense
|
|
43,925
|
|
|
41,870
|
|
||
Less: Retirement defined benefits expense—other than service costs
|
|
(387
|
)
|
|
(195
|
)
|
||
*Expenses-Bank
|
|
50,532
|
|
|
48,501
|
|
||
*Operating income-Bank
|
|
24,887
|
|
|
24,355
|
|
||
Add back: Retirement defined benefits expense—other than service costs
|
|
387
|
|
|
195
|
|
||
Income before income taxes
|
|
$
|
24,500
|
|
|
$
|
24,160
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2018
|
|
2017
|
||||
Net income
|
|
$
|
18,960
|
|
|
$
|
15,813
|
|
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 $4,867 and $(148), respectively
|
|
(13,297
|
)
|
|
223
|
|
||
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 $694 and $404, respectively
|
|
1,222
|
|
|
612
|
|
||
Other comprehensive income (loss), net of taxes
|
|
(12,075
|
)
|
|
835
|
|
||
Comprehensive income
|
|
$
|
6,885
|
|
|
$
|
16,648
|
|
(in thousands)
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and due from banks
|
|
|
|
|
$
|
123,580
|
|
|
|
|
|
$
|
140,934
|
|
||
Interest-bearing deposits
|
|
|
|
90,643
|
|
|
|
|
93,165
|
|
||||||
Investment securities
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale, at fair value
|
|
|
|
|
1,418,490
|
|
|
|
|
|
1,401,198
|
|
||||
Held-to-maturity, at amortized cost (fair value of $42,491 and $44,412, respectively)
|
|
|
|
43,450
|
|
|
|
|
44,515
|
|
||||||
Stock in Federal Home Loan Bank, at cost
|
|
|
|
|
10,158
|
|
|
|
|
|
9,706
|
|
||||
Loans held for investment
|
|
|
|
|
4,742,024
|
|
|
|
|
|
4,670,768
|
|
||||
Allowance for loan losses
|
|
|
|
|
(53,895
|
)
|
|
|
|
|
(53,637
|
)
|
||||
Net loans
|
|
|
|
|
4,688,129
|
|
|
|
|
|
4,617,131
|
|
||||
Loans held for sale, at lower of cost or fair value
|
|
|
|
|
7,379
|
|
|
|
|
|
11,250
|
|
||||
Other
|
|
|
|
|
425,426
|
|
|
|
|
|
398,570
|
|
||||
Goodwill
|
|
|
|
|
82,190
|
|
|
|
|
|
82,190
|
|
||||
Total assets
|
|
|
|
|
$
|
6,889,445
|
|
|
|
|
|
$
|
6,798,659
|
|
||
Liabilities and shareholder’s equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposit liabilities—noninterest-bearing
|
|
|
|
|
$
|
1,795,114
|
|
|
|
|
|
$
|
1,760,233
|
|
||
Deposit liabilities—interest-bearing
|
|
|
|
|
4,283,953
|
|
|
|
|
|
4,130,364
|
|
||||
Other borrowings
|
|
|
|
|
100,430
|
|
|
|
|
|
190,859
|
|
||||
Other
|
|
|
|
|
106,482
|
|
|
|
|
|
110,356
|
|
||||
Total liabilities
|
|
|
|
|
6,285,979
|
|
|
|
|
|
6,191,812
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock
|
|
|
|
|
1
|
|
|
|
|
|
1
|
|
||||
Additional paid in capital
|
|
|
|
345,652
|
|
|
|
|
345,018
|
|
||||||
Retained earnings
|
|
|
|
|
300,837
|
|
|
|
|
|
292,957
|
|
||||
Accumulated other comprehensive loss, net of tax benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized losses on securities
|
|
$
|
(28,248
|
)
|
|
|
|
|
$
|
(14,951
|
)
|
|
|
|
||
Retirement benefit plans
|
|
(14,776
|
)
|
|
(43,024
|
)
|
|
(16,178
|
)
|
|
(31,129
|
)
|
||||
Total shareholder’s equity
|
|
|
|
|
603,466
|
|
|
|
|
|
606,847
|
|
||||
Total liabilities and shareholder’s equity
|
|
|
|
|
$
|
6,889,445
|
|
|
|
|
|
$
|
6,798,659
|
|
||
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bank-owned life insurance
|
|
|
|
|
$
|
149,656
|
|
|
|
|
|
$
|
148,775
|
|
||
Premises and equipment, net
|
|
|
|
|
164,702
|
|
|
|
|
|
136,270
|
|
||||
Prepaid expenses
|
|
|
|
|
4,549
|
|
|
|
|
|
3,961
|
|
||||
Accrued interest receivable
|
|
|
|
|
18,461
|
|
|
|
|
|
18,724
|
|
||||
Mortgage-servicing rights
|
|
|
|
|
8,541
|
|
|
|
|
|
8,639
|
|
||||
Low-income housing equity investments
|
|
|
|
57,222
|
|
|
|
|
59,016
|
|
||||||
Real estate acquired in settlement of loans, net
|
|
|
|
|
—
|
|
|
|
|
|
133
|
|
||||
Other
|
|
|
|
|
22,295
|
|
|
|
|
|
23,052
|
|
||||
|
|
|
|
|
$
|
425,426
|
|
|
|
|
|
$
|
398,570
|
|
||
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued expenses
|
|
|
|
|
$
|
49,034
|
|
|
|
|
|
$
|
39,312
|
|
||
Federal and state income taxes payable
|
|
|
|
|
1,369
|
|
|
|
|
|
3,736
|
|
||||
Cashier’s checks
|
|
|
|
|
22,990
|
|
|
|
|
|
27,000
|
|
||||
Advance payments by borrowers
|
|
|
|
|
6,255
|
|
|
|
|
|
10,245
|
|
||||
Other
|
|
|
|
|
26,834
|
|
|
|
|
|
30,063
|
|
||||
|
|
|
|
|
$
|
106,482
|
|
|
|
|
|
$
|
110,356
|
|
|
|
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
|
||||||||||||||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury and federal agency obligations
|
|
$
|
181,919
|
|
|
$
|
164
|
|
|
$
|
(3,255
|
)
|
|
$
|
178,828
|
|
|
18
|
|
|
$
|
93,034
|
|
|
$
|
(1,424
|
)
|
|
9
|
|
|
$
|
68,489
|
|
|
$
|
(1,831
|
)
|
Mortgage-related securities- FNMA, FHLMC and GNMA
|
|
1,259,732
|
|
|
389
|
|
|
(35,886
|
)
|
|
1,224,235
|
|
|
86
|
|
|
762,936
|
|
|
(17,161
|
)
|
|
79
|
|
|
447,876
|
|
|
(18,725
|
)
|
||||||||
Mortgage revenue bond
|
|
15,427
|
|
|
—
|
|
|
—
|
|
|
15,427
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
|
$
|
1,457,078
|
|
|
$
|
553
|
|
|
$
|
(39,141
|
)
|
|
$
|
1,418,490
|
|
|
104
|
|
|
$
|
855,970
|
|
|
$
|
(18,585
|
)
|
|
88
|
|
|
$
|
516,365
|
|
|
$
|
(20,556
|
)
|
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA
|
|
$
|
43,450
|
|
|
$
|
—
|
|
|
$
|
(959
|
)
|
|
$
|
42,491
|
|
|
3
|
|
|
$
|
42,491
|
|
|
$
|
(959
|
)
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
43,450
|
|
|
$
|
—
|
|
|
$
|
(959
|
)
|
|
$
|
42,491
|
|
|
3
|
|
|
$
|
42,491
|
|
|
$
|
(959
|
)
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury and federal agency obligations
|
|
$
|
185,891
|
|
|
$
|
438
|
|
|
$
|
(2,031
|
)
|
|
$
|
184,298
|
|
|
15
|
|
|
$
|
83,137
|
|
|
$
|
(825
|
)
|
|
8
|
|
|
$
|
62,296
|
|
|
$
|
(1,206
|
)
|
Mortgage-related securities- FNMA, FHLMC and GNMA
|
|
1,220,304
|
|
|
793
|
|
|
(19,624
|
)
|
|
1,201,473
|
|
|
67
|
|
|
653,635
|
|
|
(6,839
|
)
|
|
77
|
|
|
459,912
|
|
|
(12,785
|
)
|
||||||||
Mortgage revenue bond
|
|
15,427
|
|
|
—
|
|
|
—
|
|
|
15,427
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
|
$
|
1,421,622
|
|
|
$
|
1,231
|
|
|
$
|
(21,655
|
)
|
|
$
|
1,401,198
|
|
|
82
|
|
|
$
|
736,772
|
|
|
$
|
(7,664
|
)
|
|
85
|
|
|
$
|
522,208
|
|
|
$
|
(13,991
|
)
|
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA
|
|
$
|
44,515
|
|
|
$
|
1
|
|
|
$
|
(104
|
)
|
|
$
|
44,412
|
|
|
2
|
|
|
$
|
35,744
|
|
|
$
|
(104
|
)
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
44,515
|
|
|
$
|
1
|
|
|
$
|
(104
|
)
|
|
$
|
44,412
|
|
|
2
|
|
|
$
|
35,744
|
|
|
$
|
(104
|
)
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
March 31, 2018
|
|
Amortized cost
|
|
Fair value
|
||||
(in thousands)
|
|
|
|
|
||||
Available-for-sale
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
15,000
|
|
|
$
|
14,902
|
|
Due after one year through five years
|
|
83,983
|
|
|
82,887
|
|
||
Due after five years through ten years
|
|
69,986
|
|
|
68,521
|
|
||
Due after ten years
|
|
28,377
|
|
|
27,945
|
|
||
|
|
197,346
|
|
|
194,255
|
|
||
Mortgage-related securities-FNMA, FHLMC and GNMA
|
|
1,259,732
|
|
|
1,224,235
|
|
||
Total available-for-sale securities
|
|
$
|
1,457,078
|
|
|
$
|
1,418,490
|
|
Held-to-maturity
|
|
|
|
|
||||
Mortgage-related securities-FNMA, FHLMC and GNMA
|
|
$
|
43,450
|
|
|
$
|
42,491
|
|
Total held-to-maturity securities
|
|
$
|
43,450
|
|
|
$
|
42,491
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
(in thousands)
|
|
|
|
|
|
||
Real estate:
|
|
|
|
|
|
||
Residential 1-4 family
|
$
|
2,116,121
|
|
|
$
|
2,118,047
|
|
Commercial real estate
|
766,522
|
|
|
733,106
|
|
||
Home equity line of credit
|
914,941
|
|
|
913,052
|
|
||
Residential land
|
16,569
|
|
|
15,797
|
|
||
Commercial construction
|
114,535
|
|
|
108,273
|
|
||
Residential construction
|
15,363
|
|
|
14,910
|
|
||
Total real estate
|
3,944,051
|
|
|
3,903,185
|
|
||
Commercial
|
568,371
|
|
|
544,828
|
|
||
Consumer
|
230,258
|
|
|
223,564
|
|
||
Total loans
|
4,742,680
|
|
|
4,671,577
|
|
||
Less: Deferred fees and discounts
|
(656
|
)
|
|
(809
|
)
|
||
Allowance for loan losses
|
(53,895
|
)
|
|
(53,637
|
)
|
||
Total loans, net
|
$
|
4,688,129
|
|
|
$
|
4,617,131
|
|
(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 March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
$
|
2,902
|
|
|
$
|
15,796
|
|
|
$
|
7,522
|
|
|
$
|
896
|
|
|
$
|
4,671
|
|
|
$
|
12
|
|
|
$
|
10,851
|
|
|
$
|
10,987
|
|
|
$
|
—
|
|
|
$
|
53,637
|
|
Charge-offs
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
(602
|
)
|
|
(4,232
|
)
|
|
—
|
|
|
(4,873
|
)
|
||||||||||
Recoveries
|
|
54
|
|
|
—
|
|
|
14
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
1,170
|
|
|
347
|
|
|
—
|
|
|
1,590
|
|
||||||||||
Provision
|
|
(400
|
)
|
|
163
|
|
|
446
|
|
|
(219
|
)
|
|
(310
|
)
|
|
(8
|
)
|
|
(1,064
|
)
|
|
4,933
|
|
|
—
|
|
|
3,541
|
|
||||||||||
Ending balance
|
|
$
|
2,525
|
|
|
$
|
15,959
|
|
|
$
|
7,982
|
|
|
$
|
674
|
|
|
$
|
4,361
|
|
|
$
|
4
|
|
|
$
|
10,355
|
|
|
$
|
12,035
|
|
|
$
|
—
|
|
|
$
|
53,895
|
|
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
|
$
|
1,207
|
|
|
$
|
68
|
|
|
$
|
892
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
519
|
|
|
$
|
3
|
|
|
|
|
$
|
2,706
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
1,318
|
|
|
$
|
15,891
|
|
|
$
|
7,090
|
|
|
$
|
657
|
|
|
$
|
4,361
|
|
|
$
|
4
|
|
|
$
|
9,836
|
|
|
$
|
12,032
|
|
|
$
|
—
|
|
|
$
|
51,189
|
|
Financing Receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance
|
|
$
|
2,116,121
|
|
|
$
|
766,522
|
|
|
$
|
914,941
|
|
|
$
|
16,569
|
|
|
$
|
114,535
|
|
|
$
|
15,363
|
|
|
$
|
568,371
|
|
|
$
|
230,258
|
|
|
|
|
$
|
4,742,680
|
|
||
Ending balance: individually evaluated for impairment
|
|
$
|
17,728
|
|
|
$
|
1,004
|
|
|
$
|
10,265
|
|
|
$
|
1,184
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,385
|
|
|
$
|
65
|
|
|
|
|
$
|
34,631
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
2,098,393
|
|
|
$
|
765,518
|
|
|
$
|
904,676
|
|
|
$
|
15,385
|
|
|
$
|
114,535
|
|
|
$
|
15,363
|
|
|
$
|
563,986
|
|
|
$
|
230,193
|
|
|
|
|
$
|
4,708,049
|
|
||
Three months ended March 31, 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
|
|
(6
|
)
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,510
|
)
|
|
(2,810
|
)
|
|
—
|
|
|
(4,340
|
)
|
||||||||||
Recoveries
|
|
9
|
|
|
—
|
|
|
91
|
|
|
203
|
|
|
—
|
|
|
—
|
|
|
297
|
|
|
297
|
|
|
—
|
|
|
897
|
|
||||||||||
Provision
|
|
(95
|
)
|
|
500
|
|
|
301
|
|
|
(462
|
)
|
|
808
|
|
|
(1
|
)
|
|
(503
|
)
|
|
3,359
|
|
|
—
|
|
|
3,907
|
|
||||||||||
Ending balance
|
|
$
|
2,781
|
|
|
$
|
16,504
|
|
|
$
|
5,417
|
|
|
$
|
1,479
|
|
|
$
|
7,257
|
|
|
$
|
11
|
|
|
$
|
14,902
|
|
|
$
|
7,646
|
|
|
$
|
—
|
|
|
$
|
55,997
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
|
$
|
1,248
|
|
|
$
|
65
|
|
|
$
|
647
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
694
|
|
|
$
|
29
|
|
|
|
|
$
|
2,730
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
1,654
|
|
|
$
|
15,731
|
|
|
$
|
6,875
|
|
|
$
|
849
|
|
|
$
|
4,671
|
|
|
$
|
12
|
|
|
$
|
10,157
|
|
|
$
|
10,958
|
|
|
$
|
—
|
|
|
$
|
50,907
|
|
Financing Receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance
|
|
$
|
2,118,047
|
|
|
$
|
733,106
|
|
|
$
|
913,052
|
|
|
$
|
15,797
|
|
|
$
|
108,273
|
|
|
$
|
14,910
|
|
|
$
|
544,828
|
|
|
$
|
223,564
|
|
|
|
|
$
|
4,671,577
|
|
||
Ending balance: individually evaluated for impairment
|
|
$
|
18,284
|
|
|
$
|
1,016
|
|
|
$
|
8,188
|
|
|
$
|
1,265
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,574
|
|
|
$
|
66
|
|
|
|
|
$
|
33,393
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
2,099,763
|
|
|
$
|
732,090
|
|
|
$
|
904,864
|
|
|
$
|
14,532
|
|
|
$
|
108,273
|
|
|
$
|
14,910
|
|
|
$
|
540,254
|
|
|
$
|
223,498
|
|
|
|
|
$
|
4,638,184
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
(in thousands)
|
|
Commercial
real estate
|
|
Commercial
construction
|
|
Commercial
|
|
Commercial
real estate
|
|
Commercial
construction
|
|
Commercial
|
||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pass
|
|
$
|
667,555
|
|
|
$
|
89,802
|
|
|
$
|
518,819
|
|
|
$
|
630,877
|
|
|
$
|
83,757
|
|
|
$
|
492,942
|
|
Special mention
|
|
46,283
|
|
|
22,500
|
|
|
27,876
|
|
|
49,347
|
|
|
22,500
|
|
|
27,997
|
|
||||||
Substandard
|
|
52,684
|
|
|
2,233
|
|
|
21,676
|
|
|
52,882
|
|
|
2,016
|
|
|
23,421
|
|
||||||
Doubtful
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
468
|
|
||||||
Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
766,522
|
|
|
$
|
114,535
|
|
|
$
|
568,371
|
|
|
$
|
733,106
|
|
|
$
|
108,273
|
|
|
$
|
544,828
|
|
(in thousands)
|
|
30-59
days
past due
|
|
60-89
days
past due
|
|
Greater
than
90 days
|
|
Total
past due
|
|
Current
|
|
Total
financing
receivables
|
|
Recorded
investment>
90 days and
accruing
|
||||||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
1,902
|
|
|
$
|
662
|
|
|
$
|
4,605
|
|
|
$
|
7,169
|
|
|
$
|
2,108,952
|
|
|
$
|
2,116,121
|
|
|
$
|
—
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
766,522
|
|
|
766,522
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
1,943
|
|
|
1,350
|
|
|
2,121
|
|
|
5,414
|
|
|
909,527
|
|
|
914,941
|
|
|
—
|
|
|||||||
Residential land
|
|
—
|
|
|
—
|
|
|
640
|
|
|
640
|
|
|
15,929
|
|
|
16,569
|
|
|
—
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
114,535
|
|
|
114,535
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,363
|
|
|
15,363
|
|
|
—
|
|
|||||||
Commercial
|
|
344
|
|
|
689
|
|
|
232
|
|
|
1,265
|
|
|
567,106
|
|
|
568,371
|
|
|
—
|
|
|||||||
Consumer
|
|
2,889
|
|
|
1,523
|
|
|
1,856
|
|
|
6,268
|
|
|
223,990
|
|
|
230,258
|
|
|
—
|
|
|||||||
Total loans
|
|
$
|
7,078
|
|
|
$
|
4,224
|
|
|
$
|
9,454
|
|
|
$
|
20,756
|
|
|
$
|
4,721,924
|
|
|
$
|
4,742,680
|
|
|
$
|
—
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
1,532
|
|
|
$
|
1,715
|
|
|
$
|
5,071
|
|
|
$
|
8,318
|
|
|
$
|
2,109,729
|
|
|
$
|
2,118,047
|
|
|
$
|
—
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
733,106
|
|
|
733,106
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
425
|
|
|
114
|
|
|
2,051
|
|
|
2,590
|
|
|
910,462
|
|
|
913,052
|
|
|
—
|
|
|||||||
Residential land
|
|
23
|
|
|
—
|
|
|
625
|
|
|
648
|
|
|
15,149
|
|
|
15,797
|
|
|
—
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
108,273
|
|
|
108,273
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,910
|
|
|
14,910
|
|
|
—
|
|
|||||||
Commercial
|
|
1,825
|
|
|
2,025
|
|
|
730
|
|
|
4,580
|
|
|
540,248
|
|
|
544,828
|
|
|
—
|
|
|||||||
Consumer
|
|
3,432
|
|
|
2,159
|
|
|
1,876
|
|
|
7,467
|
|
|
216,097
|
|
|
223,564
|
|
|
—
|
|
|||||||
Total loans
|
|
$
|
7,237
|
|
|
$
|
6,013
|
|
|
$
|
10,353
|
|
|
$
|
23,603
|
|
|
$
|
4,647,974
|
|
|
$
|
4,671,577
|
|
|
$
|
—
|
|
(in thousands)
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
Real estate:
|
|
|
|
|
|
|
||
Residential 1-4 family
|
|
$
|
13,578
|
|
|
$
|
12,598
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
||
Home equity line of credit
|
|
5,049
|
|
|
4,466
|
|
||
Residential land
|
|
853
|
|
|
841
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
2,714
|
|
|
3,069
|
|
||
Consumer
|
|
2,949
|
|
|
2,617
|
|
||
Total nonaccrual loans
|
|
$
|
25,143
|
|
|
$
|
23,591
|
|
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
|
|
$
|
10,874
|
|
|
$
|
10,982
|
|
Commercial real estate
|
|
1,004
|
|
|
1,016
|
|
||
Home equity line of credit
|
|
8,467
|
|
|
6,584
|
|
||
Residential land
|
|
331
|
|
|
425
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
1,886
|
|
|
1,741
|
|
||
Consumer
|
|
65
|
|
|
66
|
|
||
Total troubled debt restructured loans not included above
|
|
$
|
22,627
|
|
|
$
|
20,814
|
|
|
|
March 31, 2018
|
|
Three months ended March 31, 2018
|
||||||||||||||||
(in thousands)
|
|
Recorded
investment
|
|
Unpaid
principal
balance
|
|
Related
Allowance
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
||||||||||
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
8,673
|
|
|
$
|
9,205
|
|
|
$
|
—
|
|
|
$
|
8,496
|
|
|
$
|
107
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
|
1,690
|
|
|
1,982
|
|
|
—
|
|
|
1,700
|
|
|
5
|
|
|||||
Residential land
|
|
1,130
|
|
|
1,429
|
|
|
—
|
|
|
1,168
|
|
|
5
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
2,499
|
|
|
3,411
|
|
|
—
|
|
|
2,357
|
|
|
10
|
|
|||||
Consumer
|
|
7
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|||||
|
|
$
|
13,999
|
|
|
$
|
16,034
|
|
|
$
|
—
|
|
|
$
|
13,728
|
|
|
$
|
127
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
9,055
|
|
|
$
|
9,258
|
|
|
$
|
1,207
|
|
|
$
|
9,129
|
|
|
$
|
93
|
|
Commercial real estate
|
|
1,004
|
|
|
1,004
|
|
|
68
|
|
|
1,008
|
|
|
11
|
|
|||||
Home equity line of credit
|
|
8,575
|
|
|
8,619
|
|
|
892
|
|
|
7,741
|
|
|
81
|
|
|||||
Residential land
|
|
54
|
|
|
54
|
|
|
17
|
|
|
77
|
|
|
2
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
1,886
|
|
|
1,886
|
|
|
519
|
|
|
1,957
|
|
|
36
|
|
|||||
Consumer
|
|
58
|
|
|
58
|
|
|
3
|
|
|
58
|
|
|
1
|
|
|||||
|
|
$
|
20,632
|
|
|
$
|
20,879
|
|
|
$
|
2,706
|
|
|
$
|
19,970
|
|
|
$
|
224
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
17,728
|
|
|
$
|
18,463
|
|
|
$
|
1,207
|
|
|
$
|
17,625
|
|
|
$
|
200
|
|
Commercial real estate
|
|
1,004
|
|
|
1,004
|
|
|
68
|
|
|
1,008
|
|
|
11
|
|
|||||
Home equity line of credit
|
|
10,265
|
|
|
10,601
|
|
|
892
|
|
|
9,441
|
|
|
86
|
|
|||||
Residential land
|
|
1,184
|
|
|
1,483
|
|
|
17
|
|
|
1,245
|
|
|
7
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
4,385
|
|
|
5,297
|
|
|
519
|
|
|
4,314
|
|
|
46
|
|
|||||
Consumer
|
|
65
|
|
|
65
|
|
|
3
|
|
|
65
|
|
|
1
|
|
|||||
|
|
$
|
34,631
|
|
|
$
|
36,913
|
|
|
$
|
2,706
|
|
|
$
|
33,698
|
|
|
$
|
351
|
|
|
|
December 31, 2017
|
|
Three months ended March 31, 2017
|
||||||||||||||||
(in thousands)
|
|
Recorded
investment
|
|
Unpaid
principal
balance
|
|
Related
allowance
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
||||||||||
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
9,097
|
|
|
$
|
9,644
|
|
|
$
|
—
|
|
|
$
|
9,555
|
|
|
$
|
84
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
220
|
|
|
—
|
|
|||||
Home equity line of credit
|
|
1,496
|
|
|
1,789
|
|
|
—
|
|
|
2,004
|
|
|
14
|
|
|||||
Residential land
|
|
1,143
|
|
|
1,434
|
|
|
—
|
|
|
957
|
|
|
26
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
2,328
|
|
|
3,166
|
|
|
—
|
|
|
4,907
|
|
|
6
|
|
|||||
Consumer
|
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
$
|
14,072
|
|
|
$
|
16,041
|
|
|
$
|
—
|
|
|
$
|
17,643
|
|
|
$
|
130
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
9,187
|
|
|
$
|
9,390
|
|
|
$
|
1,248
|
|
|
$
|
10,048
|
|
|
$
|
119
|
|
Commercial real estate
|
|
1,016
|
|
|
1,016
|
|
|
65
|
|
|
1,300
|
|
|
14
|
|
|||||
Home equity line of credit
|
|
6,692
|
|
|
6,736
|
|
|
647
|
|
|
4,562
|
|
|
49
|
|
|||||
Residential land
|
|
122
|
|
|
122
|
|
|
47
|
|
|
2,076
|
|
|
37
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
2,246
|
|
|
2,252
|
|
|
694
|
|
|
7,268
|
|
|
401
|
|
|||||
Consumer
|
|
58
|
|
|
58
|
|
|
29
|
|
|
30
|
|
|
—
|
|
|||||
|
|
$
|
19,321
|
|
|
$
|
19,574
|
|
|
$
|
2,730
|
|
|
$
|
25,284
|
|
|
$
|
620
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
18,284
|
|
|
$
|
19,034
|
|
|
$
|
1,248
|
|
|
$
|
19,603
|
|
|
$
|
203
|
|
Commercial real estate
|
|
1,016
|
|
|
1,016
|
|
|
65
|
|
|
1,520
|
|
|
14
|
|
|||||
Home equity line of credit
|
|
8,188
|
|
|
8,525
|
|
|
647
|
|
|
6,566
|
|
|
63
|
|
|||||
Residential land
|
|
1,265
|
|
|
1,556
|
|
|
47
|
|
|
3,033
|
|
|
63
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
4,574
|
|
|
5,418
|
|
|
694
|
|
|
12,175
|
|
|
407
|
|
|||||
Consumer
|
|
66
|
|
|
66
|
|
|
29
|
|
|
30
|
|
|
—
|
|
|||||
|
|
$
|
33,393
|
|
|
$
|
35,615
|
|
|
$
|
2,730
|
|
|
$
|
42,927
|
|
|
$
|
750
|
|
*
|
Since loan was classified as impaired.
|
|
|
Three months ended March 31, 2018
|
|||||||||||||
|
|
Number of contracts
|
|
Outstanding recorded
investment
1
|
|
Net increase in allowance
|
|||||||||
(dollars in thousands)
|
|
|
Pre-modification
|
|
Post-modification
|
|
(as of period end)
|
||||||||
Troubled debt restructurings
|
|
|
|
|
|
|
|
|
|
|
|
||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Residential 1-4 family
|
|
1
|
|
|
$
|
339
|
|
|
$
|
344
|
|
|
$
|
16
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Home equity line of credit
|
|
18
|
|
|
2,170
|
|
|
2,174
|
|
|
388
|
|
|||
Residential land
|
|
1
|
|
|
109
|
|
|
109
|
|
|
—
|
|
|||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial
|
|
5
|
|
|
2,251
|
|
|
2,251
|
|
|
—
|
|
|||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
25
|
|
|
$
|
4,869
|
|
|
$
|
4,878
|
|
|
$
|
404
|
|
|
|
Three months ended March 31, 2017
|
|||||||||||||
|
|
Number of contracts
|
|
Outstanding recorded
investment 1 |
|
Net increase in allowance
|
|||||||||
(dollars in thousands)
|
|
|
Pre-modification
|
|
Post-modification
|
|
(as of period end)
|
||||||||
Troubled debt restructurings
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
3
|
|
|
$
|
512
|
|
|
$
|
520
|
|
|
$
|
45
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Home equity line of credit
|
|
8
|
|
|
226
|
|
|
212
|
|
|
34
|
|
|||
Residential land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial
|
|
1
|
|
|
342
|
|
|
342
|
|
|
—
|
|
|||
Consumer
|
|
1
|
|
|
59
|
|
|
59
|
|
|
27
|
|
|||
|
|
13
|
|
|
$
|
1,139
|
|
|
$
|
1,133
|
|
|
$
|
106
|
|
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 March 31, 2018
|
|
Three months ended March 31, 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
|
|
$
|
49
|
|
|
1
|
|
$
|
301
|
|
Commercial real estate
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Home equity line of credit
|
|
1
|
|
86
|
|
|
—
|
|
—
|
|
||
Residential land
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Commercial construction
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Residential construction
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Commercial
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Consumer
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
|
|
2
|
|
$
|
135
|
|
|
1
|
|
$
|
301
|
|
(in thousands)
|
|
Gross
carrying amount 1 |
|
Accumulated amortization
1
|
|
Valuation allowance
|
|
Net
carrying amount |
||||||||
March 31, 2018
|
|
$
|
17,846
|
|
|
$
|
(9,305
|
)
|
|
$
|
—
|
|
|
$
|
8,541
|
|
December 31, 2017
|
|
17,511
|
|
|
(8,872
|
)
|
|
—
|
|
|
8,639
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2018
|
|
2017
|
||||
Mortgage servicing rights
|
|
|
|
|
||||
Beginning balance
|
|
$
|
8,639
|
|
|
$
|
9,373
|
|
Amount capitalized
|
|
335
|
|
|
436
|
|
||
Amortization
|
|
(433
|
)
|
|
(515
|
)
|
||
Other-than-temporary impairment
|
|
—
|
|
|
—
|
|
||
Carrying amount before valuation allowance
|
|
8,541
|
|
|
9,294
|
|
||
Valuation allowance for mortgage servicing rights
|
|
|
|
|
||||
Beginning balance
|
|
—
|
|
|
—
|
|
||
Provision (recovery)
|
|
—
|
|
|
—
|
|
||
Other-than-temporary impairment
|
|
—
|
|
|
—
|
|
||
Ending balance
|
|
—
|
|
|
—
|
|
||
Net carrying value of mortgage servicing rights
|
|
$
|
8,541
|
|
|
$
|
9,294
|
|
(dollars in thousands)
|
|
March 31, 2018
|
|
|
December 31, 2017
|
|
||
Unpaid principal balance
|
|
$
|
1,184,160
|
|
|
$
|
1,195,454
|
|
Weighted average note rate
|
|
3.94
|
%
|
|
3.94
|
%
|
||
Weighted average discount rate
|
|
10.0
|
%
|
|
10.0
|
%
|
||
Weighted average prepayment speed
|
|
7.1
|
%
|
|
9.0
|
%
|
(dollars in thousands)
|
|
March 31, 2018
|
|
|
December 31, 2017
|
|
||
Prepayment rate:
|
|
|
|
|
||||
25 basis points adverse rate change
|
|
$
|
(378
|
)
|
|
$
|
(869
|
)
|
50 basis points adverse rate change
|
|
(883
|
)
|
|
(1,828
|
)
|
||
Discount rate:
|
|
|
|
|
||||
25 basis points adverse rate change
|
|
(127
|
)
|
|
(111
|
)
|
||
50 basis points adverse rate change
|
|
(252
|
)
|
|
(220
|
)
|
(in millions)
|
|
Gross amount of
recognized liabilities
|
|
Gross amount offset in
the Balance Sheet
|
|
Net amount of liabilities presented
in the Balance Sheet
|
||||||
Repurchase agreements
|
|
|
|
|
|
|
|
|
|
|||
March 31, 2018
|
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
50
|
|
December 31, 2017
|
|
141
|
|
|
—
|
|
|
141
|
|
|
|
Gross amount not offset in the Balance Sheet
|
||||||||||
(in millions)
|
|
Net amount of liabilities presented
in the Balance Sheet
|
|
Financial
instruments
|
|
Cash
collateral
pledged
|
||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|||
Commercial account holders
|
|
$
|
50
|
|
|
$
|
97
|
|
|
$
|
—
|
|
Total
|
|
$
|
50
|
|
|
$
|
97
|
|
|
$
|
—
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|||
Commercial account holders
|
|
$
|
141
|
|
|
$
|
165
|
|
|
$
|
—
|
|
Total
|
|
$
|
141
|
|
|
$
|
165
|
|
|
$
|
—
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||
(in thousands)
|
|
Notional amount
|
|
Fair value
|
|
Notional amount
|
|
Fair value
|
||||||||
Interest rate lock commitments
|
|
$
|
24,741
|
|
|
$
|
255
|
|
|
$
|
13,669
|
|
|
$
|
131
|
|
Forward commitments
|
|
26,844
|
|
|
(60
|
)
|
|
14,465
|
|
|
(24
|
)
|
Derivative Financial Instruments Not Designated as Hedging Instruments
1
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||
(in thousands)
|
|
Asset derivatives
|
|
Liability
derivatives
|
|
Asset derivatives
|
|
Liability
derivatives |
||||||||
Interest rate lock commitments
|
|
$
|
264
|
|
|
$
|
9
|
|
|
$
|
133
|
|
|
$
|
2
|
|
Forward commitments
|
|
18
|
|
|
78
|
|
|
4
|
|
|
28
|
|
||||
|
|
$
|
282
|
|
|
$
|
87
|
|
|
$
|
137
|
|
|
$
|
30
|
|
Derivative Financial Instruments Not Designated as Hedging Instruments
|
|
Location of net gains (losses) recognized in the Statement of Income
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
|
2018
|
|
2017
|
|||||
Interest rate lock commitments
|
|
Mortgage banking income
|
|
$
|
124
|
|
|
$
|
(104
|
)
|
Forward commitments
|
|
Mortgage banking income
|
|
(36
|
)
|
|
73
|
|
||
|
|
|
|
$
|
88
|
|
|
$
|
(31
|
)
|
|
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, 2017
|
$
|
(14,951
|
)
|
|
$
|
—
|
|
|
$
|
(26,990
|
)
|
|
$
|
(41,941
|
)
|
|
$
|
—
|
|
|
$
|
(1,219
|
)
|
|
$
|
(1,219
|
)
|
Current period other comprehensive income (loss)
|
(13,297
|
)
|
|
—
|
|
|
524
|
|
|
(12,773
|
)
|
|
—
|
|
|
31
|
|
|
31
|
|
|||||||
Balance, March 31, 2018
|
$
|
(28,248
|
)
|
|
$
|
—
|
|
|
$
|
(26,466
|
)
|
|
$
|
(54,714
|
)
|
|
$
|
—
|
|
|
$
|
(1,188
|
)
|
|
$
|
(1,188
|
)
|
Balance, December 31, 2016
|
$
|
(7,931
|
)
|
|
$
|
(454
|
)
|
|
$
|
(24,744
|
)
|
|
$
|
(33,129
|
)
|
|
$
|
(454
|
)
|
|
$
|
132
|
|
|
$
|
(322
|
)
|
Current period other comprehensive income
|
223
|
|
|
454
|
|
|
308
|
|
|
985
|
|
|
454
|
|
|
5
|
|
|
459
|
|
|||||||
Balance, March 31, 2017
|
$
|
(7,708
|
)
|
|
$
|
—
|
|
|
$
|
(24,436
|
)
|
|
$
|
(32,144
|
)
|
|
$
|
—
|
|
|
$
|
137
|
|
|
$
|
137
|
|
|
|
Amount reclassified from AOCI
|
|
|
||||||
|
|
Three months ended March 31
|
|
Affected line item in the
|
||||||
(in thousands)
|
|
2018
|
|
2017
|
|
Statements of Income / Balance Sheets
|
||||
HEI consolidated
|
|
|
|
|
|
|
||||
Derivatives qualifying as cash flow hedges:
|
|
|
|
|
|
|
|
|
||
Window forward contracts
|
|
$
|
—
|
|
|
$
|
454
|
|
|
Property, plant and equipment-electric utilities
|
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost
|
|
5,146
|
|
|
3,921
|
|
|
See Note 8 for additional details
|
||
Impact of D&Os of the PUC included in regulatory assets
|
|
(4,622
|
)
|
|
(3,613
|
)
|
|
See Note 8 for additional details
|
||
Total reclassifications
|
|
$
|
524
|
|
|
$
|
762
|
|
|
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
||||
Derivatives qualifying as cash flow hedges:
|
|
|
|
|
|
|
||||
Window forward contracts
|
|
$
|
—
|
|
|
$
|
454
|
|
|
Property, plant and equipment
|
Retirement benefit plans:
|
|
|
|
|
|
|
|
|||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost
|
|
4,653
|
|
|
3,618
|
|
|
See Note 8 for additional details
|
||
Impact of D&Os of the PUC included in regulatory assets
|
|
(4,622
|
)
|
|
(3,613
|
)
|
|
See Note 8 for additional details
|
||
Total reclassifications
|
|
$
|
31
|
|
|
$
|
459
|
|
|
|
Three months ended March 31, 2018
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from contracts with customers
|
|
|
|
|
|
|
|
|
||||||||
Electric energy sales - residential
|
|
$
|
178,589
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
178,589
|
|
Electric energy sales - commercial
|
|
188,998
|
|
|
—
|
|
|
—
|
|
|
188,998
|
|
||||
Electric energy sales - large light and power
|
|
192,321
|
|
|
—
|
|
|
—
|
|
|
192,321
|
|
||||
Electric energy sales - other
|
|
3,263
|
|
|
—
|
|
|
—
|
|
|
3,263
|
|
||||
Utility fees
|
|
797
|
|
|
—
|
|
|
—
|
|
|
797
|
|
||||
Bank fees
|
|
—
|
|
|
11,497
|
|
|
—
|
|
|
11,497
|
|
||||
Total revenues from contracts with customers
|
|
563,968
|
|
|
11,497
|
|
|
—
|
|
|
575,465
|
|
||||
Revenues from other sources
|
|
|
|
|
|
|
|
|
||||||||
Regulatory revenue
|
|
4,750
|
|
|
—
|
|
|
—
|
|
|
4,750
|
|
||||
Bank interest and dividend income
|
|
—
|
|
|
62,002
|
|
|
—
|
|
|
62,002
|
|
||||
Other bank noninterest income
|
|
—
|
|
|
1,920
|
|
|
—
|
|
|
1,920
|
|
||||
Other
|
|
1,709
|
|
|
—
|
|
|
28
|
|
|
1,737
|
|
||||
Total revenues from other sources
|
|
6,459
|
|
|
63,922
|
|
|
28
|
|
|
70,409
|
|
||||
Total revenues
|
|
$
|
570,427
|
|
|
$
|
75,419
|
|
|
$
|
28
|
|
|
$
|
645,874
|
|
Timing of revenue recognition
|
|
|
|
|
|
|
|
|
||||||||
Services/goods transferred at a point in time
|
|
$
|
797
|
|
|
$
|
11,497
|
|
|
$
|
—
|
|
|
$
|
12,294
|
|
Services/goods transferred over time
|
|
563,171
|
|
|
—
|
|
|
—
|
|
|
563,171
|
|
||||
Total revenues from contracts with customers
|
|
$
|
563,968
|
|
|
$
|
11,497
|
|
|
$
|
—
|
|
|
$
|
575,465
|
|
|
|
Three months ended March 31
|
||||||||||||||
|
|
Pension benefits
|
|
Other benefits
|
||||||||||||
(in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
||||||||
Service cost
|
|
$
|
17,113
|
|
|
$
|
16,494
|
|
|
$
|
669
|
|
|
$
|
840
|
|
Interest cost
|
|
19,234
|
|
|
20,216
|
|
|
1,931
|
|
|
2,411
|
|
||||
Expected return on plan assets
|
|
(27,254
|
)
|
|
(25,721
|
)
|
|
(3,192
|
)
|
|
(3,066
|
)
|
||||
Amortization of net prior service gain
|
|
(10
|
)
|
|
(14
|
)
|
|
(452
|
)
|
|
(449
|
)
|
||||
Amortization of net actuarial loss (gain)
|
|
7,395
|
|
|
6,513
|
|
|
(2
|
)
|
|
366
|
|
||||
Net periodic pension/benefit cost (return)
|
|
16,478
|
|
|
17,488
|
|
|
(1,046
|
)
|
|
102
|
|
||||
Impact of PUC D&Os
|
|
2,657
|
|
|
(5,156
|
)
|
|
1,071
|
|
|
146
|
|
||||
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
|
|
$
|
19,135
|
|
|
$
|
12,332
|
|
|
$
|
25
|
|
|
$
|
248
|
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
||||||||
Service cost
|
|
$
|
16,673
|
|
|
$
|
16,094
|
|
|
$
|
664
|
|
|
$
|
835
|
|
Interest cost
|
|
17,710
|
|
|
18,589
|
|
|
1,859
|
|
|
2,327
|
|
||||
Expected return on plan assets
|
|
(25,607
|
)
|
|
(24,011
|
)
|
|
(3,140
|
)
|
|
(3,017
|
)
|
||||
Amortization of net prior service loss (gain)
|
|
2
|
|
|
2
|
|
|
(451
|
)
|
|
(451
|
)
|
||||
Amortization of net actuarial loss
|
|
6,710
|
|
|
6,006
|
|
|
—
|
|
|
359
|
|
||||
Net periodic pension/benefit cost (return)
|
|
15,488
|
|
|
16,680
|
|
|
(1,068
|
)
|
|
53
|
|
||||
Impact of PUC D&Os
|
|
2,657
|
|
|
(5,156
|
)
|
|
1,071
|
|
|
146
|
|
||||
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
|
|
$
|
18,145
|
|
|
$
|
11,524
|
|
|
$
|
3
|
|
|
$
|
199
|
|
|
|
Three months ended March 31
|
||||||
(in millions)
|
|
2018
|
|
2017
|
||||
HEI consolidated
|
|
|
|
|
||||
Share-based compensation expense
1
|
|
$
|
1.7
|
|
|
$
|
1.1
|
|
Income tax benefit
|
|
0.2
|
|
|
0.3
|
|
||
Hawaiian Electric consolidated
|
|
|
|
|
||||
Share-based compensation expense
1
|
|
0.6
|
|
|
0.5
|
|
||
Income tax benefit
|
|
0.1
|
|
|
0.2
|
|
1
|
For the three months ended
March 31, 2018
and 2017, the Company has not capitalized any share-based compensation.
|
|
|
Three months ended March 31
|
||||||
(dollars in thousands)
|
|
2018
|
|
2017
|
||||
Shares granted
|
|
1,074
|
|
|
770
|
|
||
Fair value
|
|
$
|
39
|
|
|
$
|
25
|
|
Income tax benefit
|
|
10
|
|
|
10
|
|
|
|
Three months ended March 31
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||
Outstanding, beginning of period
|
|
197,047
|
|
|
$
|
31.53
|
|
|
220,683
|
|
|
$
|
29.57
|
|
||
Granted
|
|
88,905
|
|
|
34.10
|
|
|
96,977
|
|
|
33.48
|
|
||||
Vested
|
|
(75,235
|
)
|
|
30.55
|
|
|
(81,624
|
)
|
|
28.85
|
|
||||
Forfeited
|
|
(2,629
|
)
|
|
33.09
|
|
|
—
|
|
|
—
|
|
||||
Outstanding, end of period
|
|
208,088
|
|
|
$
|
32.97
|
|
|
236,036
|
|
|
$
|
31.42
|
|
||
Total weighted-average grant-date fair value of shares granted (in millions)
|
|
$
|
3.0
|
|
|
|
|
$
|
3.2
|
|
|
|
(1)
|
Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.
|
|
|
Three months ended March 31
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||
Outstanding, beginning of period
|
|
32,904
|
|
|
$
|
39.51
|
|
|
83,106
|
|
|
$
|
22.95
|
|
||
Granted
|
|
35,626
|
|
|
38.21
|
|
|
36,971
|
|
|
39.51
|
|
||||
Vested (issued or unissued and cancelled)
|
|
—
|
|
|
—
|
|
|
(83,106
|
)
|
|
22.95
|
|
||||
Forfeited
|
|
(1,739
|
)
|
|
38.83
|
|
|
—
|
|
|
—
|
|
||||
Outstanding, end of period
|
|
66,791
|
|
|
$
|
38.84
|
|
|
36,971
|
|
|
$
|
39.51
|
|
||
Total weighted-average grant-date fair value of shares granted (in millions)
|
|
$
|
1.4
|
|
|
|
|
$
|
1.5
|
|
|
|
(1)
|
Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.
|
|
|
2018
|
|
|
2017
|
|
Risk-free interest rate
|
|
2.29
|
%
|
|
1.46
|
%
|
Expected life in years
|
|
3
|
|
|
3
|
|
Expected volatility
|
|
17.0
|
%
|
|
20.1
|
%
|
Range of expected volatility for Peer Group
|
|
15.1% to 26.2%
|
|
|
15.4% to 26.0%
|
|
Grant date fair value (per share)
|
|
$38.20
|
|
$39.51
|
|
|
Three months ended March 31
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||
Outstanding, beginning of period
|
|
131,616
|
|
|
$
|
33.47
|
|
|
109,816
|
|
|
$
|
25.18
|
|
||
Granted
|
|
142,509
|
|
|
34.10
|
|
|
147,888
|
|
|
33.48
|
|
||||
Vested
|
|
—
|
|
|
—
|
|
|
(109,816
|
)
|
|
25.18
|
|
||||
Forfeited
|
|
(6,958
|
)
|
|
33.81
|
|
|
—
|
|
|
—
|
|
||||
Outstanding, end of period
|
|
267,167
|
|
|
$
|
33.80
|
|
|
147,888
|
|
|
$
|
33.48
|
|
||
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions)
|
|
$
|
4.9
|
|
|
|
|
$
|
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.
|
Three months ended March 31
|
|
2018
|
|
2017
|
||||
(in millions)
|
|
|
|
|
||||
Supplemental disclosures of cash flow information
|
|
|
|
|
|
|
||
HEI consolidated
|
|
|
|
|
||||
Interest paid to non-affiliates
|
|
$
|
19
|
|
|
$
|
19
|
|
Income taxes paid (including refundable credits)
|
|
3
|
|
|
4
|
|
||
Hawaiian Electric consolidated
|
|
|
|
|
||||
Interest paid to non-affiliates
|
|
12
|
|
|
13
|
|
||
Income taxes paid (including refundable credits)
|
|
5
|
|
|
2
|
|
||
Supplemental disclosures of noncash activities
|
|
|
|
|
|
|
||
HEI consolidated
|
|
|
|
|
||||
Property, plant and equipment
|
|
|
|
|
||||
Estimated fair value of noncash contributions in aid of construction (investing)
|
|
3
|
|
|
—
|
|
||
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing)
|
|
48
|
|
|
27
|
|
||
Loans transferred from held for investment to held for sale (investing)
|
|
1
|
|
|
9
|
|
||
Common stock issued (gross) for director and executive/management compensation (financing)
1
|
|
3
|
|
|
9
|
|
||
Transfer of retail repurchase agreements to deposit liabilities (financing)
|
|
102
|
|
|
—
|
|
||
Hawaiian Electric consolidated
|
|
|
|
|
||||
Electric utility property, plant and equipment
|
|
|
|
|
||||
Estimated fair value of noncash contributions in aid of construction (investing)
|
|
3
|
|
|
—
|
|
||
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing)
|
|
29
|
|
|
26
|
|
|
|
|
|
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
|
|||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale investment securities
|
|
$
|
1,418,490
|
|
|
$
|
—
|
|
|
$
|
1,403,063
|
|
|
$
|
15,427
|
|
|
$
|
1,418,490
|
|
Held-to-maturity investment securities
|
|
43,450
|
|
|
—
|
|
|
42,491
|
|
|
—
|
|
|
42,491
|
|
|||||
Stock in Federal Home Loan Bank
|
|
10,158
|
|
|
—
|
|
|
10,158
|
|
|
—
|
|
|
10,158
|
|
|||||
Loans, net
|
|
4,695,508
|
|
|
—
|
|
|
7,380
|
|
|
4,772,870
|
|
|
4,780,250
|
|
|||||
Mortgage servicing rights
|
|
8,541
|
|
|
—
|
|
|
—
|
|
|
12,882
|
|
|
12,882
|
|
|||||
Derivative assets
|
|
29,840
|
|
|
—
|
|
|
611
|
|
|
—
|
|
|
611
|
|
|||||
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative assets-window forward contracts
|
|
3,240
|
|
|
—
|
|
|
329
|
|
|
—
|
|
|
329
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
1
|
|
777,390
|
|
|
—
|
|
|
766,425
|
|
|
—
|
|
|
766,425
|
|
|||||
Short-term borrowings—other than bank
|
|
238,445
|
|
|
—
|
|
|
238,445
|
|
|
—
|
|
|
238,445
|
|
|||||
Other bank borrowings
|
|
100,430
|
|
|
—
|
|
|
100,377
|
|
|
—
|
|
|
100,377
|
|
|||||
Long-term debt, net—other than bank
|
|
1,684,002
|
|
|
—
|
|
|
1,741,324
|
|
|
—
|
|
|
1,741,324
|
|
|||||
Derivative liabilities
|
|
24,985
|
|
|
60
|
|
|
27
|
|
|
—
|
|
|
87
|
|
|||||
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
|
121,983
|
|
|
—
|
|
|
121,983
|
|
|
—
|
|
|
121,983
|
|
|||||
Long-term debt, net
|
|
1,368,627
|
|
|
—
|
|
|
1,432,134
|
|
|
—
|
|
|
1,432,134
|
|
|||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale investment securities
|
|
1,401,198
|
|
|
—
|
|
|
1,385,771
|
|
|
15,427
|
|
|
1,401,198
|
|
|||||
Held-to-maturity investment securities
|
|
44,515
|
|
|
—
|
|
|
44,412
|
|
|
—
|
|
|
44,412
|
|
|||||
Stock in Federal Home Loan Bank
|
|
9,706
|
|
|
—
|
|
|
9,706
|
|
|
—
|
|
|
9,706
|
|
|||||
Loans, net
|
|
4,628,381
|
|
|
—
|
|
|
11,254
|
|
|
4,770,497
|
|
|
4,781,751
|
|
|||||
Mortgage servicing rights
|
|
8,639
|
|
|
—
|
|
|
—
|
|
|
12,052
|
|
|
12,052
|
|
|||||
Derivative assets
|
|
17,812
|
|
|
—
|
|
|
393
|
|
|
—
|
|
|
393
|
|
|||||
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative assets-window forward contracts
|
|
3,240
|
|
|
—
|
|
|
256
|
|
|
—
|
|
|
256
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
1
|
|
5,890,597
|
|
|
—
|
|
|
5,884,071
|
|
|
—
|
|
|
5,884,071
|
|
|||||
Short-term borrowings—other than bank
|
|
117,945
|
|
|
—
|
|
|
117,945
|
|
|
—
|
|
|
117,945
|
|
|||||
Other bank borrowings
|
|
190,859
|
|
|
—
|
|
|
190,829
|
|
|
—
|
|
|
190,829
|
|
|||||
Long-term debt, net—other than bank
|
|
1,683,797
|
|
|
—
|
|
|
1,813,295
|
|
|
—
|
|
|
1,813,295
|
|
|||||
Derivative liabilities
|
|
13,562
|
|
|
20
|
|
|
10
|
|
|
—
|
|
|
30
|
|
|||||
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
|
4,999
|
|
|
—
|
|
|
4,999
|
|
|
—
|
|
|
4,999
|
|
|||||
Long-term debt, net
|
|
1,368,479
|
|
|
—
|
|
|
1,497,079
|
|
|
—
|
|
|
1,497,079
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
Fair value measurements using
|
|
Fair value measurements using
|
||||||||||||||||||||
(in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Available-for-sale investment securities (bank segment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Mortgage-related securities-FNMA, FHLMC and GNMA
|
|
$
|
—
|
|
|
$
|
1,224,235
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,201,473
|
|
|
$
|
—
|
|
U.S. Treasury and federal agency obligations
|
|
—
|
|
|
178,828
|
|
|
—
|
|
|
—
|
|
|
184,298
|
|
|
—
|
|
||||||
Mortgage revenue bond
|
|
—
|
|
|
—
|
|
|
15,427
|
|
|
—
|
|
|
—
|
|
|
15,427
|
|
||||||
|
|
$
|
—
|
|
|
$
|
1,403,063
|
|
|
$
|
15,427
|
|
|
$
|
—
|
|
|
$
|
1,385,771
|
|
|
$
|
15,427
|
|
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate lock commitments (bank segment)
1
|
|
$
|
—
|
|
|
$
|
264
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
133
|
|
|
$
|
—
|
|
Forward commitments (bank segment)
1
|
|
—
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||||
Window forward contracts (electric utility segment)
2
|
|
—
|
|
|
329
|
|
|
—
|
|
|
—
|
|
|
256
|
|
|
—
|
|
||||||
|
|
$
|
—
|
|
|
$
|
611
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
393
|
|
|
$
|
—
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate lock commitments (bank segment)
1
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
Forward commitments (bank segment)
1
|
|
60
|
|
|
18
|
|
|
—
|
|
|
20
|
|
|
8
|
|
|
—
|
|
||||||
|
|
$
|
60
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
20
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
|
Three months ended March 31
|
|||||
Mortgage revenue bond
|
|
2018
|
2017
|
||||
(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
|
||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
$
|
545
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
545
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
2,621
|
|
|
—
|
|
|
—
|
|
|
2,621
|
|
|
|
|
|
|
|
|
|
Significant unobservable
input value
(1)
|
||||
($ in thousands)
|
|
Fair value
|
|
Valuation technique
|
|
Significant unobservable input
|
|
Range
|
|
Weighted
Average
|
||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||
Residential loans
|
|
$
|
545
|
|
|
Fair value of collateral
|
|
Appraised value less 7% selling cost
|
|
69-95%
|
|
84%
|
Total loans
|
|
$
|
545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||
Residential loans
|
|
$
|
613
|
|
|
Fair value of collateral
|
|
Appraised value less 7% selling cost
|
|
71-92%
|
|
84%
|
Commercial loans
|
|
2,008
|
|
|
Fair value of collateral
|
|
Appraised value
|
|
71-76%
|
|
75%
|
|
Total loans
|
|
$
|
2,621
|
|
|
|
|
|
|
|
|
|
(in thousands, except per
|
|
Three months ended March 31
|
|
%
|
|
|
||||||
share amounts)
|
|
2018
|
|
2017
|
|
change
|
|
Primary reason(s)*
|
||||
Revenues
|
|
$
|
645,874
|
|
|
$
|
591,562
|
|
|
9
|
|
Increases for the electric utility and bank segments
|
Operating income
|
|
71,889
|
|
|
69,738
|
|
|
3
|
|
Increases for the electric utility and bank segments, and lower operating losses for the “other” segment
|
||
Net income for common stock
|
|
40,247
|
|
|
34,193
|
|
|
18
|
|
Higher net income at the electric utility and bank segments, partly offset by higher net losses at the “other” segment. See below for effective tax rate explanation.
|
||
Basic earnings per common share
|
|
$
|
0.37
|
|
|
$
|
0.31
|
|
|
19
|
|
Higher net income
|
Weighted-average number of common shares outstanding
|
|
108,818
|
|
|
108,674
|
|
|
—
|
|
Issuances of shares under compensation plans.
|
*
|
Also, see segment discussions which follow.
|
|
|
Three months ended March 31
|
|
|
||||||
(in thousands)
|
|
2018
|
|
2017
|
|
Primary reason(s)
|
||||
Revenues
|
|
$
|
28
|
|
|
$
|
95
|
|
|
|
Operating loss
|
|
(4,367
|
)
|
|
(4,978
|
)
|
|
First quarter of 2018 includes $0.9 million of operating income from Pacific Current, LLC
1
. First quarter of 2018 corporate expense was slightly higher than same period in 2017.
|
||
Net loss
|
|
(6,188
|
)
|
|
(3,085
|
)
|
|
First quarter of 2018 includes higher interest expense (due to higher interest rates at corporate and new debt at Pacific Current, LLC related to Hamakua Energy’s acquisition of a power plant) and lower tax benefits on expenses as a result of tax reform and lower excess tax benefits associated with share-based awards in the first quarter of 2018 as compared to the first quarter of 2017.
|
1
|
Hamakua Energy’s sales to Hawaii Electric Light (a regulated affiliate) are eliminated in consolidation, but Hamakua Energy's profit on electricity sales to Hawaii Electric Light is not required to be eliminated because the PPA was approved by the PUC and it is probable that, through the ratemaking process, future revenue from Hawaii Electric Light’s sale of the electricity will approximate its purchase price from Hamakua Energy under the PPA.
|
(dollars in millions)
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||
Short-term borrowings—other than bank
|
|
$
|
238
|
|
|
6
|
%
|
|
$
|
118
|
|
|
3
|
%
|
Long-term debt, net—other than bank
|
|
1,684
|
|
|
41
|
|
|
1,684
|
|
|
43
|
|
||
Preferred stock of subsidiaries
|
|
34
|
|
|
1
|
|
|
34
|
|
|
1
|
|
||
Common stock equity
|
|
2,092
|
|
|
52
|
|
|
2,097
|
|
|
53
|
|
||
|
|
$
|
4,048
|
|
|
100
|
%
|
|
$
|
3,933
|
|
|
100
|
%
|
|
|
Average balance
|
|
Balance
|
||||||||
(in millions)
|
|
Three months ended March 31, 2018
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||
Commercial paper
|
|
$
|
45
|
|
|
$
|
67
|
|
|
$
|
63
|
|
Line of credit draws
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Undrawn capacity under HEI’s line of credit facility
|
|
|
|
150
|
|
|
150
|
|
Three months ended March 31
|
|
Increase
|
|
|
||||||||||||
2018
|
|
2017
|
|
(decrease)
|
|
(dollars in millions, except per barrel amounts)
|
||||||||||
$
|
570
|
|
|
$
|
519
|
|
|
$
|
51
|
|
|
|
|
Revenues.
Net increase largely due to:
|
||
|
|
|
|
|
|
$
|
34
|
|
|
higher fuel oil prices
1
|
||||||
|
|
|
|
|
|
17
|
|
|
higher RAM revenues
|
|||||||
|
|
|
|
|
|
7
|
|
|
higher interim rate relief
|
|||||||
|
|
|
|
|
|
5
|
|
|
higher PPAC revenues
|
|||||||
|
|
|
|
|
|
5
|
|
|
higher KWH purchased
|
|||||||
|
|
|
|
|
|
3
|
|
|
higher purchased power energy costs
2
|
|||||||
|
|
|
|
|
|
(9
|
)
|
|
Tax Act refund accrual
|
|||||||
|
|
|
|
|
|
(10
|
)
|
|
lower KWH generated
|
|||||||
167
|
|
|
144
|
|
|
23
|
|
|
|
|
Fuel oil expense.
Increase due to higher fuel oil prices, partially offset by lower KWH generated
|
|||||
140
|
|
|
127
|
|
|
13
|
|
|
|
|
Purchased power expense.
Increase due to higher fuel oil prices
|
|||||
|
|
|
|
|
|
5
|
|
|
higher KWH purchased
|
|||||||
|
|
|
|
|
|
3
|
|
|
higher purchased power energy price
|
|||||||
|
|
|
|
|
|
3
|
|
|
higher AES Hawaii capacity charges
|
|||||||
108
|
|
|
99
|
|
|
9
|
|
|
|
|
Operation and maintenance expenses
. Net increase due to:
|
|||||
|
|
|
|
|
|
4
|
|
|
reset of pension costs as part of rate case interim decisions
|
|||||||
|
|
|
|
|
|
2
|
|
|
write-off of smart grid costs
|
|||||||
|
|
|
|
|
|
3
|
|
|
higher overhaul costs for generation
|
|||||||
|
|
|
|
|
|
1
|
|
|
one-time rent expense adjustment for existing substation land
|
|||||||
|
|
|
|
|
|
(1
|
)
|
|
environmental reserve for Pearl Harbor sediment in 2017
|
|||||||
105
|
|
|
98
|
|
|
7
|
|
|
|
|
Other expenses.
Increase due to higher revenue taxes from higher revenue, coupled with higher depreciation expense for plant investments in 2017
|
|||||
51
|
|
|
50
|
|
|
1
|
|
|
|
|
Operating income.
Increase due to higher revenue from RAM and interim rate relief offset by Tax Act adjustment, higher operation and maintenance and other expenses
|
|||||
27
|
|
|
21
|
|
|
6
|
|
|
|
|
Net income for common stock.
Increase due to interim rate relief and higher RAM, offset in part by higher expenses
|
|||||
|
|
|
|
|
|
|
|
|
||||||||
2,012
|
|
|
2,038
|
|
|
(26
|
)
|
|
|
|
Kilowatthour sales (millions)
3
|
|||||
$
|
80.68
|
|
|
$
|
65.85
|
|
|
$
|
14.83
|
|
|
|
|
Average fuel oil cost per barrel
1
|
||
462,764
|
|
|
460,724
|
|
|
2,040
|
|
|
|
|
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
|
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 March 31, 2018
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|||||||||
Utility returns
|
|
6.34
|
|
|
6.89
|
|
|
5.89
|
|
|
6.88
|
|
|
7.46
|
|
|
6.45
|
|
|
7.35
|
|
|
7.97
|
|
|
6.52
|
|
PUC-allowed returns
|
|
7.57
|
|
|
7.80
|
|
|
7.34
|
|
|
9.50
|
|
|
9.50
|
|
|
9.00
|
|
|
9.50
|
|
|
9.50
|
|
|
9.00
|
|
Difference
|
|
(1.23
|
)
|
|
(0.91
|
)
|
|
(1.45
|
)
|
|
(2.62
|
)
|
|
(2.04
|
)
|
|
(2.55
|
)
|
|
(2.15
|
)
|
|
(1.53
|
)
|
|
(2.48
|
)
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Request
|
|
12/16/16
|
|
$
|
106.4
|
|
|
6.9
|
|
|
10.60
|
|
|
8.28
|
|
|
$
|
2,002
|
|
|
57.36
|
|
|
Yes
|
Interim increase
|
|
2/16/18
|
|
36.0
|
|
|
2.3
|
|
|
9.50
|
|
|
7.57
|
|
|
1,980
|
|
|
57.10
|
|
|
|
||
Interim increase with Tax Act
|
|
4/13/18
|
|
(0.6
|
)
|
|
—
|
|
|
9.50
|
|
|
7.57
|
|
|
1,993
|
|
|
57.10
|
|
|
|
||
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
|
|
|
|
||
Interim increase with Tax Act
|
|
5/1/18
|
|
1.5
|
|
|
0.5
|
|
|
9.50
|
|
|
7.80
|
|
|
481
|
|
|
56.69
|
|
|
|
||
Maui Electric
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Request
|
|
10/12/17
|
|
$
|
30.1
|
|
|
9.3
|
|
|
10.60
|
|
|
8.05
|
|
|
$
|
473
|
|
|
56.94
|
|
|
|
•
|
Authorize the use of consolidated depreciation and amortization rates rather than separate depreciation and amortization rates for the three utilities
|
•
|
Establish revised depreciation and amortization rates for the three utilities
|
•
|
Allow implementation of the new depreciation and amortization rates and other changes to coincide with the effective date of the interim or final base rates approved in the subsequent rate case for each utility
|
•
|
In July 2015, the PUC approved a 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 experienced delays. South Maui Renewable Resources reached commercial operations on May 5, 2018, and Kuia Solar is now expected to be completed by the first half of 2018.
|
•
|
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. The NPM wind farm is expected to be placed into service by August 31, 2019.
|
•
|
Hawaiian Electric terminated PPAs to purchase solar energy with three affiliates of SunEdison, which affiliates were acquired by an affiliate of NRG Energy, Inc. (NRG) during SunEdison’s Chapter 11 bankruptcy proceedings. Hawaiian Electric then negotiated with NRG and its newly acquired affiliates and entered into amended and restated PPAs for
|
•
|
In January 2018, Maui Electric signed a PPA, subject to PUC approval, with Molokai New Energy Partners to purchase solar energy from a PV plus battery storage project. The 4.9 MW project will deliver no more than 2.7 MW at any time to the Molokai system and is expected to be in service by end of 2019.
|
•
|
As of
March 31, 2018
, there were approximately 343 MW, 79 MW and 91 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
March 31, 2018
, an estimated 27% of single family homes on the islands of Oahu, Hawaii and Maui have installed private rooftop solar systems, and an estimated 30% of single family homes have installed, or have been approved to install, private rooftop solar systems. As of
March 31, 2018
, approximately 16% of the Utilities' total customers have solar systems.
|
•
|
The Utilities began accepting energy from feed-in tariff projects in 2011. As of
March 31, 2018
, 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 October 27, 2017, Hawaiian Electric entered into a new biodiesel supply contract with PBT, subject to PUC approval, to supply 2 million to 4 million gallons of biodiesel per year for three years. The new PBT contract is expected 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.
|
•
|
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 for dispatchable firm renewable generation and variable renewable generation. On October 23, 2017, the Utilities filed draft requests for proposals for 220 MW of renewable generation on Oahu (Oahu Variable RFP), 50 MW of renewable generation on Hawaii Island (Hawaii Variable RFP), and 100 MW of renewable generation on Maui, including 40 MW of firm renewable generation, comprising the Maui Variable RFP and Maui Firm RFP (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. In January 2018, the PUC issued an order appointing Independent Observers for the RFPs and directed the Utilities to move forward with the three Variable RFPs. On February 20, 2018, the PUC approved, with minor modification, the proposed Variable RFPs and directed the Utilities to issue the RFPs, as modified. On February 27, 2018, the Utilities opened the RFPs to receive proposals, with an April 30, 2018 deadline for such proposals. The PUC indicated it would provide further guidance on the Maui Firm RFP in the first quarter of 2018, but receipt of such guidance is still pending.
|
•
|
On January 5, 2017, Hawaiian Electric issued requests for Onshore Wind Expression of Interest to developers that are capable of developing utility scale onshore wind projects that are eligible to capture the federal Investment Tax Credit
|
•
|
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 the islands of Oahu, Hawaii, Maui, Molokai and Lanai. Responses have been made available to developers interested in developing renewable energy projects on these five islands.
|
(dollars in millions)
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||
Short-term borrowings
|
|
$
|
122
|
|
|
4
|
%
|
|
$
|
5
|
|
|
—
|
%
|
Long-term debt, net
|
|
1,369
|
|
|
40
|
|
|
1,369
|
|
|
42
|
|
||
Preferred stock
|
|
34
|
|
|
1
|
|
|
34
|
|
|
1
|
|
||
Common stock equity
|
|
1,847
|
|
|
55
|
|
|
1,845
|
|
|
57
|
|
||
|
|
$
|
3,372
|
|
|
100
|
%
|
|
$
|
3,253
|
|
|
100
|
%
|
|
|
Average balance
|
|
Balance
|
||||||||
(in millions)
|
|
Three months ended March 31, 2018
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||
Short-term borrowings
1
|
|
|
|
|
|
|
|
|
|
|||
Commercial paper
|
|
$
|
71
|
|
|
$
|
122
|
|
|
$
|
5
|
|
Line of credit draws
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Borrowings from HEI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Undrawn capacity under line of credit facility
|
|
—
|
|
|
200
|
|
|
200
|
|
|
Three months ended March 31,
|
|
|
||||||||
(in thousands)
|
2018
|
|
2017
|
|
Change
|
||||||
Net cash provided by operating activities
|
$
|
29,780
|
|
|
$
|
31,879
|
|
|
$
|
(2,099
|
)
|
Net cash used in investing activities
|
(109,524
|
)
|
|
(71,360
|
)
|
|
(38,164
|
)
|
|||
Net cash provided by (used in) financing activities
|
90,626
|
|
|
(21,598
|
)
|
|
112,224
|
|
|
|
Three months ended March 31
|
|
Increase
|
|
|
||||||||
(in millions)
|
|
2018
|
|
2017
|
|
(decrease)
|
|
Primary reason(s)
|
||||||
Interest income
|
|
$
|
62
|
|
|
$
|
58
|
|
|
$
|
4
|
|
|
The increase in interest income was the result of an increase in yields on earning assets and higher investment securities portfolio balances. ASB’s average investment securities portfolio balance for the three months ended March 31, 2018 increased by $325 million compared to the same period in 2017 as ASB used excess liquidity to purchase investments. The yield on the investment securities portfolio increased by 6 basis points as new investment purchase yields were higher due to the increase in short-term interest rates. ASB’s average loan portfolio balance for the three months ended March 31, 2018 decreased by $17 million compared to the same period in 2017 as average commercial and commercial real estate balances decreased by $110 million and $57 million, respectively. The decrease in these loan portfolios was reflective of ASB’s strategic decision to reduce the balances in certain commercial and national loan portfolios to improve the credit quality of those portfolios. The average residential, home equity line of credit and consumer loan portfolios for the three months ended March 31, 2018 increased by $56 million, $53 million and $44 million respectively, compared to the same period in 2017. The growth in these loan portfolios aligned with ASB’s portfolio mix target and loan growth strategy. The yield on loans benefited from the rising interest rate environment, which resulted in an increase in yields of 19 basis points.
|
Noninterest income
|
|
13
|
|
|
15
|
|
|
(2
|
)
|
|
Noninterest income decreased for the three months ended March 31, 2018 compared to noninterest income for the three months ended March 31, 2017 primarily due to lower fees from other financial services in 2018 as a result of debit card interchange expenses being netted against income. Prior year’s debit card interchange expenses were recorded in other noninterest expense. This change was in accordance with the new revenue recognition accounting standard. See Note 7 of the Condensed Consolidated Financial Statements for additional information on the new revenue recognition standard.
|
|||
Revenues
|
|
75
|
|
|
73
|
|
|
2
|
|
|
|
|||
Interest expense
|
|
3
|
|
|
3
|
|
|
—
|
|
|
Interest expense was flat for the three months ended March 31, 2018 compared to the same period in 2017 as higher interest expense from the growth in time certificates was offset by lower interest expense on other borrowings as a result of lower FHLB advances. Average deposit balances for the three months ended March 31, 2018 increased by $298 million compared to the same period in 2017 due to an increase in core deposits and time certificates of $166 million and $132 million, respectively. Average other borrowings for the three months ended March 31, 2018 increased by $12 million compared to the same period in 2017 primarily due to an increase in repurchase agreements partly offset by a decrease in FHLB advances. The interest-bearing liability rate for the three months ended March 31, 2018 increased by 4 basis points compared to the same period in 2017.
|
|||
Provision for loan losses
|
|
4
|
|
|
4
|
|
|
—
|
|
|
The provision for loan losses was flat for the three months ended March 31, 2018 compared to the provision for loan losses for the three months ended March 31, 2017. The provision for loan losses for 2018 was primarily due to increased reserves for growth in the loan portfolio and additional loan loss reserves for the consumer loan portfolio, partly offset by the release of reserves for the commercial loan portfolio due to a recovery on a previously charged-off commercial loan and improved credit quality of the commercial and commercial real estate loan portfolios. The provision for loan losses for 2017 was primarily due to increased loan loss reserves for the consumer loan portfolio and additional loan loss reserves for commercial real estate loan portfolio due to the downgrade of a specific commercial real estate relationship. Delinquency rates have increased slightly from 0.42% at March 31, 2017 to 0.44% at March 31, 2018. The annualized net charge-off ratio for the three months ended March 31, 2018 was 0.28% compared to an annualized net charge-off ratio of 0.29% for the same period in 2017.
|
|||
Noninterest expense
|
|
43
|
|
|
42
|
|
|
1
|
|
|
The increase in noninterest expense for the three months ended March 31, 2018 compared to the same period in 2017 was primarily due to higher compensation and employee benefits expenses as a result of an increase in the minimum pay rate for employees, higher performance-based incentives and annual merit increases, partly offset by the reclassification of debit card interchange expenses in accordance with the new revenue recognition accounting standard.
|
|||
Expenses
|
|
50
|
|
|
49
|
|
|
1
|
|
|
|
|||
Operating income
|
|
25
|
|
|
24
|
|
|
1
|
|
|
The increase in operating income for the three months ended March 31, 2018 compared to the same period in 2017 was primarily due to higher interest income, mostly offset by lower noninterest income and higher noninterest expenses.
|
|||
Net income
|
|
19
|
|
|
16
|
|
|
3
|
|
|
The increase in net income for the three months ended March 31, 2018 compared to the same period in 2017 was primarily due to higher operating income and lower income tax expense as a result of the lower corporate rate from the Tax Act.
|
|
|
Three months ended March 31
|
||||
(%)
|
|
2018
|
|
2017
|
||
Return on average assets
|
|
1.12
|
|
|
0.98
|
|
Return on average equity
|
|
12.58
|
|
|
10.82
|
|
Net interest margin
|
|
3.76
|
|
|
3.68
|
|
|
|
Three months ended March 31
|
||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||
(dollars in thousands)
|
|
Average
balance |
|
Interest
1
income/ expense |
|
Yield/
rate (%) |
|
Average
balance |
|
Interest
1
income/ expense |
|
Yield/
rate (%) |
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-earning deposits
|
|
$
|
56,495
|
|
|
$
|
216
|
|
|
1.53
|
|
|
$
|
92,590
|
|
|
$
|
186
|
|
|
0.80
|
|
FHLB stock
|
|
9,770
|
|
|
77
|
|
|
3.20
|
|
|
11,234
|
|
|
48
|
|
|
1.72
|
|
||||
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
1,469,065
|
|
|
8,791
|
|
|
2.39
|
|
|
1,143,915
|
|
|
6,649
|
|
|
2.32
|
|
||||
Non-taxable
|
|
15,427
|
|
|
150
|
|
|
3.88
|
|
|
15,427
|
|
|
150
|
|
|
3.89
|
|
||||
Total investment securities
|
|
1,484,492
|
|
|
8,941
|
|
|
2.41
|
|
|
1,159,342
|
|
|
6,799
|
|
|
2.35
|
|
||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential 1-4 family
|
|
2,129,318
|
|
|
21,847
|
|
|
4.10
|
|
|
2,073,428
|
|
|
21,626
|
|
|
4.17
|
|
||||
Commercial real estate
|
|
853,485
|
|
|
9,251
|
|
|
4.35
|
|
|
910,827
|
|
|
9,412
|
|
|
4.14
|
|
||||
Home equity line of credit
|
|
921,007
|
|
|
7,988
|
|
|
3.52
|
|
|
868,435
|
|
|
7,116
|
|
|
3.32
|
|
||||
Residential land
|
|
16,445
|
|
|
223
|
|
|
5.41
|
|
|
18,013
|
|
|
278
|
|
|
6.18
|
|
||||
Commercial
|
|
560,529
|
|
|
6,179
|
|
|
4.46
|
|
|
670,321
|
|
|
7,155
|
|
|
4.32
|
|
||||
Consumer
|
|
230,841
|
|
|
7,312
|
|
|
12.85
|
|
|
187,316
|
|
|
5,155
|
|
|
11.16
|
|
||||
Total loans
2,3
|
|
4,711,625
|
|
|
52,800
|
|
|
4.51
|
|
|
4,728,340
|
|
|
50,742
|
|
|
4.32
|
|
||||
Total interest-earning assets
2
|
|
6,262,382
|
|
|
62,034
|
|
|
3.98
|
|
|
5,991,506
|
|
|
57,775
|
|
|
3.88
|
|
||||
Allowance for loan losses
|
|
(53,567
|
)
|
|
|
|
|
|
|
|
(56,236
|
)
|
|
|
|
|
|
|
||||
Non-interest-earning assets
|
|
574,107
|
|
|
|
|
|
|
|
|
519,941
|
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
6,782,922
|
|
|
|
|
|
|
|
|
$
|
6,455,211
|
|
|
|
|
|
|
|
||
Liabilities and shareholder’s equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Savings
|
|
$
|
2,311,083
|
|
|
$
|
401
|
|
|
0.07
|
|
|
$
|
2,248,118
|
|
|
$
|
374
|
|
|
0.07
|
|
Interest-bearing checking
|
|
933,347
|
|
|
74
|
|
|
0.03
|
|
|
885,700
|
|
|
55
|
|
|
0.03
|
|
||||
Money market
|
|
113,631
|
|
|
26
|
|
|
0.09
|
|
|
155,672
|
|
|
47
|
|
|
0.12
|
|
||||
Time certificates
|
|
793,596
|
|
|
2,456
|
|
|
1.25
|
|
|
661,468
|
|
|
1,627
|
|
|
1.00
|
|
||||
Total interest-bearing deposits
|
|
4,151,657
|
|
|
2,957
|
|
|
0.29
|
|
|
3,950,958
|
|
|
2,103
|
|
|
0.22
|
|
||||
Advances from Federal Home Loan Bank
|
|
51,111
|
|
|
245
|
|
|
1.94
|
|
|
100,000
|
|
|
775
|
|
|
3.10
|
|
||||
Securities sold under agreements to repurchase
|
|
154,744
|
|
|
251
|
|
|
0.66
|
|
|
93,673
|
|
|
41
|
|
|
0.18
|
|
||||
Total interest-bearing liabilities
|
|
4,357,512
|
|
|
3,453
|
|
|
0.32
|
|
|
4,144,631
|
|
|
2,919
|
|
|
0.28
|
|
||||
Non-interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
|
1,724,955
|
|
|
|
|
|
|
|
|
1,627,753
|
|
|
|
|
|
|
|
||||
Other
|
|
97,761
|
|
|
|
|
|
|
|
|
98,033
|
|
|
|
|
|
|
|
||||
Shareholder’s equity
|
|
602,694
|
|
|
|
|
|
|
|
|
584,794
|
|
|
|
|
|
|
|
||||
Total liabilities and shareholder’s equity
|
|
$
|
6,782,922
|
|
|
|
|
|
|
|
|
$
|
6,455,211
|
|
|
|
|
|
|
|
||
Net interest income
|
|
|
|
|
$
|
58,581
|
|
|
|
|
|
|
|
|
$
|
54,856
|
|
|
|
|
||
Net interest margin (%)
4
|
|
|
|
|
|
|
|
3.76
|
|
|
|
|
|
|
|
|
3.68
|
|
1
|
Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 21% and 35%, of $0.03 million and $0.05 million for the three months ended
March 31, 2018
and 2017, respectively.
|
3
|
Includes recognition of net deferred loan fees of $0.1 million and $0.5 million for the three months ended
March 31, 2018
and 2017, respectively, together with interest accrued prior to suspension of interest accrual on nonaccrual loans.
|
4
|
Defined as net interest income, on a fully taxable equivalent basis, as a percentage of average total interest-earning assets.
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
Outstanding balance of home equity loans (in thousands)
|
|
$
|
914,941
|
|
|
$
|
913,052
|
|
Percent of portfolio in first lien position
|
|
48.3
|
%
|
|
48.0
|
%
|
||
Annualized net charge-off (recovery) ratio
|
|
(0.01
|
)%
|
|
(0.03
|
)%
|
||
Delinquency ratio
|
|
0.59
|
%
|
|
0.28
|
%
|
|
|
|
|
|
|
End of draw period – interest only
|
|
Current
|
||||||||||||||||
March 31, 2018
|
|
Total
|
|
Interest only
|
|
2018-2019
|
|
2020-2022
|
|
Thereafter
|
|
amortizing
|
||||||||||||
Outstanding balance (in thousands)
|
|
$
|
914,941
|
|
|
$
|
707,597
|
|
|
$
|
48,488
|
|
|
$
|
109,787
|
|
|
$
|
549,322
|
|
|
$
|
207,344
|
|
% of total
|
|
100
|
%
|
|
77
|
%
|
|
5
|
%
|
|
12
|
%
|
|
60
|
%
|
|
23
|
%
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||
(dollars in thousands)
|
|
Balance
|
|
% of total
|
|
Balance
|
|
% of total
|
||||||
U.S. Treasury and federal agency obligations
|
|
$
|
178,828
|
|
|
12
|
%
|
|
$
|
184,298
|
|
|
13
|
%
|
Mortgage-related securities — FNMA, FHLMC and GNMA
|
|
1,267,685
|
|
|
87
|
|
|
1,245,988
|
|
|
86
|
|
||
Mortgage revenue bond
|
|
15,427
|
|
|
1
|
|
|
15,427
|
|
|
1
|
|
||
Total investment securities
|
|
$
|
1,461,940
|
|
|
100
|
%
|
|
$
|
1,445,713
|
|
|
100
|
%
|
|
|
Three months ended March 31
|
|
Year ended
December 31,
|
||||||||
(in thousands)
|
|
2018
|
|
2017
|
|
2017
|
||||||
Allowance for loan losses, January 1
|
|
$
|
53,637
|
|
|
$
|
55,533
|
|
|
$
|
55,533
|
|
Provision for loan losses
|
|
3,541
|
|
|
3,907
|
|
|
10,901
|
|
|||
Less: net charge-offs
|
|
3,283
|
|
|
3,443
|
|
|
12,797
|
|
|||
Allowance for loan losses, end of period
|
|
$
|
53,895
|
|
|
$
|
55,997
|
|
|
$
|
53,637
|
|
Ratio of net charge-offs during the period to average loans outstanding (annualized)
|
|
0.28
|
%
|
|
0.29
|
%
|
|
0.27
|
%
|
Effective dates
|
|
1/1/2015
|
|
1/1/2016
|
|
1/1/2017
|
|
1/1/2018
|
|
1/1/2019
|
|||||
Capital conservation buffer
|
|
|
|
|
0.625
|
%
|
|
1.25
|
%
|
|
1.875
|
%
|
|
2.50
|
%
|
Common equity Tier-1 ratio + conservation buffer
|
|
4.50
|
%
|
|
5.125
|
%
|
|
5.75
|
%
|
|
6.375
|
%
|
|
7.00
|
%
|
Tier-1 capital ratio + conservation buffer
|
|
6.00
|
%
|
|
6.625
|
%
|
|
7.25
|
%
|
|
7.875
|
%
|
|
8.50
|
%
|
Total capital ratio + conservation buffer
|
|
8.00
|
%
|
|
8.625
|
%
|
|
9.25
|
%
|
|
9.875
|
%
|
|
10.50
|
%
|
Tier-1 leverage ratio
|
|
4.00
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
Countercyclical capital buffer — not applicable to ASB
|
|
|
|
|
0.625
|
%
|
|
1.25
|
%
|
|
1.875
|
%
|
|
2.50
|
%
|
(dollars in millions)
|
|
March 31, 2018
|
|
December 31, 2017
|
|
% change
|
|||||
Total assets
|
|
$
|
6,889
|
|
|
$
|
6,799
|
|
|
1
|
|
Investment securities
|
|
1,462
|
|
|
1,446
|
|
|
1
|
|
||
Loans held for investment, net
|
|
4,688
|
|
|
4,617
|
|
|
2
|
|
||
Deposit liabilities
|
|
6,079
|
|
|
5,891
|
|
|
3
|
|
||
Other bank borrowings
|
|
100
|
|
|
191
|
|
|
(48
|
)
|
Change in interest rates
|
|
Change in NII
(gradual change in interest rates)
|
|
Change in EVE
(instantaneous change in interest rates)
|
||||||||
(basis points)
|
|
March 31, 2018
|
|
December 31, 2017
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
+300
|
|
2.2
|
%
|
|
3.0
|
%
|
|
(9.1
|
)%
|
|
(8.0
|
)%
|
+200
|
|
1.8
|
|
|
2.4
|
|
|
(5.2
|
)
|
|
(4.0
|
)
|
+100
|
|
1.2
|
|
|
1.6
|
|
|
(1.7
|
)
|
|
(0.6
|
)
|
-100
|
|
(2.5
|
)
|
|
(2.7
|
)
|
|
(3.2
|
)
|
|
(6.0
|
)
|
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
|
January 1 to 31, 2018
|
|
38,264
|
|
$34.56
|
|
—
|
|
NA
|
February 1 to 28, 2018
|
|
26,143
|
|
$33.15
|
|
—
|
|
NA
|
March 1 to 31, 2018
|
|
195,432
|
|
$33.61
|
|
—
|
|
NA
|
|
|
Three months ended March 31
|
|
Years ended December 31
|
|||||||||||||||||
|
|
2018
|
|
2017
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||
HEI and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding interest on ASB deposits
|
|
3.06
|
|
|
3.19
|
|
|
3.93
|
|
|
5.05
|
|
|
3.68
|
|
|
3.80
|
|
|
3.55
|
|
Including interest on ASB deposits
|
|
2.84
|
|
|
3.01
|
|
|
3.65
|
|
|
4.75
|
|
|
3.54
|
|
|
3.65
|
|
|
3.42
|
|
Hawaiian Electric and Subsidiaries
|
|
2.81
|
|
|
2.77
|
|
|
3.64
|
|
|
4.11
|
|
|
3.97
|
|
|
4.04
|
|
|
3.72
|
|
|
|
|
|
Hawaiian Electric Industries, Inc. and Subsidiaries
Computation of ratio of earnings to fixed charges, three months ended March 31, 2018 and 2017 and years ended December 31, 2017, 2016, 2015, 2014 and 2013
|
|
|
|
|
|
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
|
|
|
|
|
Amendment No. 4, entered into as of February 14, 2018, to Power Purchase Agreement between AES Hawaii, Inc. and Hawaiian Electric Company, Inc. (subject to PUC approval).
|
|
|
|
|
|
Hawaiian Electric Company, Inc. and Subsidiaries
Computation of ratio of earnings to fixed charges, three months ended March 31, 2018 and 2017 and years ended December 31, 2017, 2016, 2015, 2014 and 2013
|
|
|
|
|
|
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 Officer of HEI)
|
|
|
(Principal Financial Officer of Hawaiian Electric)
|
|
|
|
|
|
|
|
|
||
Date: May 10, 2018
|
|
Date: May 10, 2018
|
1.
|
REGARDING ARTICLE I OF THE POWER PURCHASE AGREEMENT - DEFINITIONS
|
2.
|
OTHER CLARIFICATIONS, MODIFICATIONS AND AMENDMENTS TO THE POWER PURCHASE AGREEMENT
|
(5)
|
Operational Commitments
- AES Hawaii shall continue and/or implement the various operational measures at the Facility as set forth in Exhibit 2 to this Amendment No. 4.
|
3.
|
TERMINATION OF OPTION AGREEMENT
|
4.
|
STAY AND TERMINATION OF ARBITRATION
|
5.
|
REGULATORY APPROVAL
|
6.
|
EFFECTIVENESS OF AMENDMENT NO. 4
|
7.
|
OTHER TERMS UNCHANGED; CONFLICT BETWEEN DOCUMENTS
|
8.
|
ENTIRE AGREEMENT
|
9.
|
MISCELLANEOUS
|
To HECO:
|
Email: ppanotices@hawaiianelectric.com
Fax: (808) 203-1238, attention Director Energy Procurement
|
|
|
With a copy to:
|
Email: legalnotices@hawaiianelectric.com
|
|
|
To AES Hawaii:
|
Email: steven.barnoski@aes.com
Fax: (808) 682-4915, attention Steven Barnoski
|
By:
|
/s/ Patrick G. Murphy
|
||
|
Name
|
Patrick G. Murphy
|
|
|
Its
|
Vice President
|
By:
|
/s/ Shelee M. T Kimura
|
|
||
|
|
|
||
|
Name:
|
Shelee M. T. Kimua
|
||
|
Its:
|
Senior Vice President Business Development & Strategic Planning
|
||
|
|
|
|
|
By:
|
/s/ Alan M. Oshima
|
|
||
|
|
|
||
|
Name:
|
Alan M. Oshima
|
||
|
Its:
|
President & Chief Executive Officer
|
1.
|
Fuel Supply Requirements and Consequences of Shortage of Fuel Supply
|
1.1
|
AES Hawaii shall have (a) a Monthly Average Daily Fuel Supply of at least twenty-five (25) days during each calendar month (the “
Monthly Fuel Supply Requirement
”) and (b) at least ten (10) days of Available Fuel Supply on each day (the “
Daily Fuel Supply Requirement
”). As used in this Annex, (i) “
Available Fuel Supply
” means AES Hawaii’s fuel supply on Oahu and (ii) “
Monthly Average Daily Fuel Supply
” means AES Hawaii’s average daily fuel supply on Oahu unloaded from a ship and fuel supply on any ship that is docked at Kalaeloa Barber’s Point Harbor that has not yet been unloaded during any calendar month as shown in the Fuel Supply Report (as defined in paragraph 2.1 below) for such month.
|
1.2
|
For the purposes of this Annex, in determining the number of days of Available Fuel Supply and the Monthly Average Daily Fuel Supply, the amount of days shall be rounded to the nearest whole number.
|
1.3
|
If a Diversion Event occurs, AES Hawaii shall (a) promptly notify HECO thereof and (b) use reasonable efforts to cause an affiliate of AES Hawaii to divert a coal vessel that is transporting fuel to an affiliate of AES Hawaii to instead deliver such fuel to AES Hawaii at Kalaeloa Barber’s Point Harbor. “
Diversion Event
” means any event that will prevent the arrival and discharge of a nominated coal vessel in sufficient time to permit AES Hawaii to be continuously dispatched according to the terms of this Fuel Supply Protocol without interruption until a subsequent or replacement AES Hawaii coal vessel is expected to be loaded and arrive for discharge at Kalaeloa Barber’s Point Harbor.
|
2.
|
Reporting of Fuel Supply and Dispatch of the Facility
|
2.1
|
By the 10th business day of each calendar month during the Term, AES Hawaii shall provide to HECO a fuel supply report (the “
Fuel Supply Report
”) detailing (a) the projected daily Available Fuel Supply, the projected daily fuel consumption and the projected dates and amounts of fuel deliveries for the subsequent 365-day period (the “
365-Day Projected Fuel Supply
”) and (b) the historical data setting forth the actual daily Available Fuel Supply, the actual daily fuel consumption, the actual dates and amounts of fuel deliveries and the Monthly Average Daily Fuel Supply. In the event a pattern of material inconsistencies in the 365-Day Projected Fuel Supply provided by AES Hawaii is found, as compared to the Monthly Average Daily Fuel Supply for the same month, upon HECO’s request, AES Hawaii shall perform, at AES Hawaii’s expense, a review of their assumptions and formulas used to project the fuel supply and provide HECO with its proposed remedial action plan within 10 business days of such request.
|
2.2
|
Upon receipt of the Fuel Supply Report each month, if the 365-Day Projected Fuel Supply projects that AES Hawaii will have less than 15 days of Available Fuel Supply on any day in such month, then the following provisions shall apply during such month:
|
(a)
|
In addition to providing the Fuel Supply Report on a monthly basis as required under paragraph 2.1 above, AES Hawaii shall also provide to HECO daily updates to the 365-Day Projected Fuel Supply (including updates to the projected daily Available Fuel Supply, projected daily fuel consumption and projected dates and amounts of fuel deliveries) and the expected date that coal will be fully unloaded from the next fuel delivery.
|
(b)
|
If the next delivery of coal is not expected to be on Oahu (unloaded from a ship) before the 9
th
day of projected Available Fuel Supply point is reached (
i.e.
, 9 days or less of fuel), then HECO may dispatch the Facility at a lower level to conserve fuel. As a condition precedent to HECO exercising its right to dispatch the Facility at a lower level pursuant to this paragraph 2.2(b), HECO shall consult with AES Hawaii about the situation and use reasonable efforts to accommodate the views of AES Hawaii.
|
(c)
|
If HECO dispatches the Facility at a lower level to conserve fuel pursuant to clause (b) above and HECO obtains replacement energy as a result thereof, AES Hawaii shall pay to HECO the difference between HECO’s fuel costs for such replacement energy and the energy costs that would have been incurred pursuant to the PPA if the Facility had produced the energy for the period during which the replacement energy was obtained;
provided
that for purposes of the foregoing, “
replacement energy
” shall mean the difference between (i) the estimate of how the Facility would have been dispatched were it not for the reduction in output necessary to conserve fuel, and (ii) the actual dispatch of the Facility. HECO shall cause any net benefit of such payment to be passed through to its ratepayers.
|
2.3
|
In accordance with the PPA, HECO has the right to dispatch the Facility anywhere between the maximum and minimum levels specified in the PPA. If HECO dispatches (pursuant to 2.2(b)) or AES Hawaii requests dispatch of the Facility at a lower level (than it would otherwise be dispatched at) because of AES Hawaii’s shortage in fuel supply, such reduction of dispatch shall be considered a derating for purposes of the Capacity Charge, the Fixed O&M Cost component of the Energy Charge, the Equivalent Availability Factor and the Equivalent Forced Outage Rate.
|
2.4
|
Except as expressly provided in this Annex, nothing in this Annex amends, alters or waives any rights or remedies HECO has pursuant to the PPA.
|
2.5
|
Section 8.1B of the PPA shall not apply to any derating pursuant to this Annex.
|
2.6
|
Pursuant to Section 15.2 of the PPA, the obligations of AES Hawaii under this Annex shall be excused to the extent and for the period that its inability to perform is caused by a Force Majeure event;
provided
that in the case of a Force Majeure event that affects AES Hawaii’s fuel supply (such as the sinking of a coal vessel), such provision shall not apply to the first twenty (20) days of AES Hawaii’s obligations hereunder that are affected by such Force Majeure event.
|
(A)
|
Nondestructive testing of retaining rings (Toshiba advised that the inspection be done with the retaining rings on); and
|
(B)
|
Flux probe testing before the generator went offline for its most recent turbine/generator outage.
|
(C)
|
AES conducted on-line flux probe testing in 2015.
|
1.
|
Biomass Conversion Analysis. Upon AES’ written request, HECO agrees to conduct analysis as set forth in this Exhibit 3. The Parties agree that:
|
a.
|
AES shall provide to HECO in writing the necessary data points that will serve as the basis of the Biomass Conversion Analysis. At a minimum, the following shall be provided:
|
1.
|
All Pricing components as contemplated by AES (capacity, energy, O&M);
|
2.
|
Performance characteristics (e.g. ramp rates); and
|
3.
|
Start and end date for PPA term.
|
b.
|
HECO shall perform the following analysis utilizing the approved PSIP (D&O 34696 dated July 14, 2017) as a base case:
|
1.
|
“In/Out” analysis compared to the base case utilizing Plexos software;
|
2.
|
Customer impact results assuming contemplated term; and
|
3.
|
Benefit/Cost ratio.
|
c.
|
There shall be at least two telephonic conference calls between the Parties, with the first call occurring no later than 15 days after receipt of the initial results and the second call occurring no later than 15 days after revised Results based on clause (d) below; and
|
d.
|
Within 15 days after the initial results and first telephonic conference call, AES shall prepare a revised configuration and/or data points that will serve as a basis for a sensitivity analysis that will be utilized in the final Biomass Conversion Analysis, which shall take into account and incorporate any sensitivities requested by AES based on the initial results.
|
2.
|
No agency
. Neither party is the agent, representative or partner of the other party and this agreement shall not be interpreted or construed to create an association, agency, joint venture or partnership relationship between the parties.
|
3.
|
Confidential Information
. The information provided by AES to HECO in accordance with Sections 1(a) and (d), and the information provided by HECO to AES in accordance with Sections 1(b) and (d), shall be considered Confidential Information. The Parties agree to keep the Confidential Information confidential and agree not to disclose any Confidential Information to anyone without the express prior written consent of the other
|
A.
|
The Parties previously entered into that certain Option Agreement, dated as of May 8, 2003, by and among AES, AES-K, and HECO, as amended by that certain Amendment to Option Agreement, dated as of July 25, 2003 (together, the “
Option Agreement
”), pursuant to which HECO was granted an option to acquire an interest in the site and easements described on
Exhibit A
attached hereto.
|
B.
|
On February 14, 2018, AES and HECO entered in to Amendment No. 4 to the Power Purchase Agreement pursuant to which, among other things, they agreed to enter into this Option Termination Agreement.
|
C.
|
In order to fulfill their obligations under Amendment No. 4 to the Power Purchase Agreement, AES and HECO desire to enter into this agreement to terminate the Option Agreement.
|
|
AES HAWAII, INC.
|
||
|
|
|
|
|
By:
|
|
|
|
Name:
|
|
|
|
Title:
|
|
|
|
|
|
|
|
|
|
|
|
AES KALAELOA VENTURE, L.L.C.
|
||
|
|
|
|
|
By:
|
|
|
|
Name:
|
|
|
|
Title:
|
|
|
|
|
|
|
|
|
|
|
|
HAWAIIAN ELECTRIC COMPANY,
|
||
|
INC.
|
||
|
|
|
|
|
By:
|
|
|
|
Name:
|
|
|
|
Title:
|
|
|
1.
|
81°
|
39'
|
358.00
|
feet along the North side of Kaomi Loop;
|
|
|
|
|
|
2.
|
171°
|
39'
|
380.42
|
feet along the remainder of Lot 5882 (Map 537) of Land Court Application 1069;
|
|
|
|
|
|
3.
|
261°
|
“39'
|
358
|
feet along the remainder of Lot 5882 (Map 537) of Land Court Application 1069;
|
|
|
|
|
|
4.
|
351°
|
39'
|
380.42
|
feet along Lot 716-A (Map 120) of Land Court Application 1069 to the point of beginning and containing an Area of 136,190 Square Feet.
|
1.
|
351°
|
39'
|
346.85
|
feet along the remainder of Lot 5882 (Map 537) of Land Court Application 1069;
|
|
|
|
|
|
2.
|
36°
|
39'
|
|
Thence along the remainder of Lot 5882 (Map 537) of Land Court Application 1069 on a curve to the right with radius of 18.00 feet the chord azimuth and distance being: 25.46 feet;
|
|
|
|
|
|
3.
|
81°
|
39'
|
397.00
|
feet along the remainder of Lot 5882 (Map 537) of Land Court Application 1069;
|
|
|
|
|
|
4.
|
126°
|
39'
|
|
Thence along the remainder of Lot 5882 (Map 537) of Land Court Application 1069 on a curve to the right with radius of 18.00 feet the chord azimuth and distance being: 25.46 feet;
|
|
|
|
|
|
5.
|
171°
|
39'
|
346.85
|
feet along the remainder of Lot 5882 (Map 537) of Land Court Application 1069;
|
|
|
|
|
|
6.
|
261°
|
39'
|
433.00
|
feet along the remainder of Lot 5882 (Map 537) of Land Court Application 1069 to the point of beginning and containing an Area of 157,841 Square Feet or 3.624 Acs.
|
1.
|
81°
|
39'
|
433.00
|
feet along the North side of Kaomi Place;
|
|
|
|
|
|
2.
|
171°
|
39'
|
80.80
|
feet along the remainder of Lot 5882 (Map 537) of Land Court Application 1069;
|
3.
|
306°
|
39'
|
|
Thence along HECO Area Two and along the remainder of Lot 5882 (Map 537) of Land Court Application 1069 on a curve to the right with a radius of 18.00 feet, the chord azimuth and distance being:
25.46 feet; |
|
|
|
|
|
4.
|
261°
|
39'
|
397.00
|
feet along HECO Area Two and along the remainder of Lot 5882 (Map 537) of Land Court Application 1069;
|
|
|
|
|
|
5.
|
216°
|
39'
|
|
Thence along HECO Area Two and along the remainder of Lot 5882 (Map 537) of Land Court Application 1069 on a curve to the right with a radius of 18.00 feet, the chord azimuth and distance being:
25.46 feet; |
|
|
|
|
|
6.
|
351°
|
39'
|
80.80
|
feet along the remainder of Lot 5882 (Map 537) of Land Court Application 1069 to the point of beginning and containing an Area of 27,331 Sq. Ft. or 0.627 Acs.
|
1.
|
351°
|
39'
|
364.85
|
feet along HECO Area Two and along the remainder of Lot 5882 (Map 537) of Land Court Application 1069;
|
|
|
|
|
|
2.
|
81°
|
39'
|
215.00
|
feet over and across Retention Pond Parcel and along the remainder of Lot 5882 (Map 537) of Land Court Application 1069;
|
|
|
|
|
|
3.
|
171°
|
39'
|
364.85
|
feet along Lot 716-A (Map 120) of Land Court Application 1069;
|
|
|
|
|
|
4.
|
261°
|
39'
|
215.00
|
feet over and across Retention Pond Parcel and along the remainder of Lot 5882 (Map 537) of Land Court Application 1069 to the point of beginning and containing an Area of 78,443 Sq. Ft. or 1.801 Acs.
|
1.
|
351°
|
39'
|
30.00
|
feet along HECO Area One and along the remainder of Lot 5882 (Map 537) of Land Court Application 1069;
|
|
|
|
|
|
2.
|
81°
|
39'
|
62.00
|
feet along the remainder of Lot 5882 (Map 537) of Land Court Application 1069;
|
|
|
|
|
|
3.
|
171°
|
39'
|
119.58
|
feet along Lot 714-B (Map 117) of Land Court Application 1069,
|
|
|
|
|
|
4.
|
81°
|
39'
|
224.88
|
feet along Lots 714-B and 714-A (Map 117) of Land Court Application 1069;
|
|
|
|
|
|
5.
|
171°
|
39'
|
30.00
|
feet along Lot 5884 (Map 537) of Land Court Application 1069;
|
|
|
|
|
|
6.
|
261°
|
39'
|
316.88
|
feet along the remainder of Lot 5882 (Map 537) of Land Court Application 1069;
|
|
|
|
|
|
7.
|
351°
|
39'
|
119.58
|
feet along the remainder of Lot 5882 (Map 537) of Land Court Application 1069;
|
|
|
|
|
|
8.
|
81°
|
39'
|
30.00
|
feet along the remainder of Lot 5882 (Map 537) of Land Court Application 1069 and along the North side of HECO Area One to the point of beginning and containing an area of 19,608 Square Feet.
|
Three months ended March 31
|
|
2018 (1)
|
|
2018 (2)
|
|
2017 (1)
|
|
2017 (2)
|
||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total interest charges
|
|
$
|
22,241
|
|
|
$
|
25,198
|
|
|
$
|
20,535
|
|
|
$
|
22,638
|
|
Interest component of rentals
|
|
2,019
|
|
|
2,019
|
|
|
1,586
|
|
|
1,586
|
|
||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
619
|
|
|
619
|
|
|
704
|
|
|
704
|
|
||||
Total fixed charges
|
|
$
|
24,879
|
|
|
$
|
27,836
|
|
|
$
|
22,825
|
|
|
$
|
24,928
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax income from continuing operations
|
|
$
|
52,803
|
|
|
$
|
52,803
|
|
|
$
|
51,109
|
|
|
$
|
51,109
|
|
Fixed charges, as shown
|
|
24,879
|
|
|
27,836
|
|
|
22,825
|
|
|
24,928
|
|
||||
Interest capitalized
|
|
(1,671
|
)
|
|
(1,671
|
)
|
|
(1,040
|
)
|
|
(1,040
|
)
|
||||
Earnings available for fixed charges
|
|
$
|
76,011
|
|
|
$
|
78,968
|
|
|
$
|
72,894
|
|
|
$
|
74,997
|
|
Ratio of earnings to fixed charges
|
|
3.06
|
|
|
2.84
|
|
|
3.19
|
|
|
3.01
|
|
Years ended December 31
|
|
2017 (1)
|
|
2017 (2)
|
|
2016 (1)
|
|
2016 (2)
|
|
2015 (1)
|
|
2015 (2)
|
||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total interest charges
|
|
$
|
82,065
|
|
|
$
|
91,725
|
|
|
$
|
81,974
|
|
|
$
|
89,141
|
|
|
$
|
83,936
|
|
|
$
|
89,284
|
|
Interest component of rentals
|
|
6,607
|
|
|
6,607
|
|
|
6,200
|
|
|
6,200
|
|
|
6,065
|
|
|
6,065
|
|
||||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
3,127
|
|
|
3,127
|
|
|
2,825
|
|
|
2,825
|
|
|
2,977
|
|
|
2,977
|
|
||||||
Total fixed charges
|
|
$
|
91,799
|
|
|
$
|
101,459
|
|
|
$
|
90,999
|
|
|
$
|
98,166
|
|
|
$
|
92,978
|
|
|
$
|
98,326
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pretax income from continuing operations
|
|
$
|
274,690
|
|
|
$
|
274,690
|
|
|
$
|
371,951
|
|
|
$
|
371,951
|
|
|
$
|
252,898
|
|
|
$
|
252,898
|
|
Fixed charges, as shown
|
|
91,799
|
|
|
101,459
|
|
|
90,999
|
|
|
98,166
|
|
|
92,978
|
|
|
98,326
|
|
||||||
Interest capitalized
|
|
(5,375
|
)
|
|
(5,375
|
)
|
|
(3,727
|
)
|
|
(3,727
|
)
|
|
(3,265
|
)
|
|
(3,265
|
)
|
||||||
Earnings available for fixed charges
|
|
$
|
361,114
|
|
|
$
|
370,774
|
|
|
$
|
459,223
|
|
|
$
|
466,390
|
|
|
$
|
342,611
|
|
|
$
|
347,959
|
|
Ratio of earnings to fixed charges
|
|
3.93
|
|
|
3.65
|
|
|
5.05
|
|
|
4.75
|
|
|
3.68
|
|
|
3.54
|
|
Years ended December 31
|
|
2014 (1)
|
|
2014 (2)
|
|
2013 (1)
|
|
2013 (2)
|
||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total interest charges
|
|
$
|
83,458
|
|
|
$
|
88,535
|
|
|
$
|
85,315
|
|
|
$
|
90,407
|
|
Interest component of rentals
|
|
6,366
|
|
|
6,366
|
|
|
6,345
|
|
|
6,345
|
|
||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
2,952
|
|
|
2,952
|
|
|
2,886
|
|
|
2,886
|
|
||||
Total fixed charges
|
|
$
|
92,776
|
|
|
$
|
97,853
|
|
|
$
|
94,546
|
|
|
$
|
99,638
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax income from continuing operations
|
|
$
|
263,708
|
|
|
$
|
263,708
|
|
|
$
|
247,946
|
|
|
$
|
247,946
|
|
Fixed charges, as shown
|
|
92,776
|
|
|
97,853
|
|
|
94,546
|
|
|
99,638
|
|
||||
Interest capitalized
|
|
(3,954
|
)
|
|
(3,954
|
)
|
|
(7,097
|
)
|
|
(7,097
|
)
|
||||
Earnings available for fixed charges
|
|
$
|
352,530
|
|
|
$
|
357,607
|
|
|
$
|
335,395
|
|
|
$
|
340,487
|
|
Ratio of earnings to fixed charges
|
|
3.80
|
|
|
3.65
|
|
|
3.55
|
|
|
3.42
|
|
(1)
|
Excluding interest on ASB deposits.
|
(2)
|
Including interest on ASB deposits.
|
|
|
Three months ended March 31
|
|
Years ended December 31
|
||||||||||||||||||||||||
(dollars in thousands)
|
|
2018
|
|
2017
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total interest charges
|
|
$
|
17,921
|
|
|
$
|
17,655
|
|
|
$
|
70,234
|
|
|
$
|
67,407
|
|
|
$
|
67,178
|
|
|
$
|
66,132
|
|
|
$
|
64,130
|
|
Interest component of rentals
|
|
1,277
|
|
|
848
|
|
|
3,618
|
|
|
3,249
|
|
|
3,060
|
|
|
3,244
|
|
|
2,793
|
|
|||||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
304
|
|
|
362
|
|
|
1,539
|
|
|
1,453
|
|
|
1,443
|
|
|
1,444
|
|
|
1,421
|
|
|||||||
Total fixed charges
|
|
$
|
19,502
|
|
|
$
|
18,865
|
|
|
$
|
75,391
|
|
|
$
|
72,109
|
|
|
$
|
71,681
|
|
|
$
|
70,820
|
|
|
$
|
68,344
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income attributable to Hawaiian Electric
|
|
$
|
27,745
|
|
|
$
|
21,735
|
|
|
$
|
121,031
|
|
|
$
|
143,397
|
|
|
$
|
136,794
|
|
|
$
|
138,721
|
|
|
$
|
124,009
|
|
Fixed charges, as shown
|
|
19,502
|
|
|
18,865
|
|
|
75,391
|
|
|
72,109
|
|
|
71,681
|
|
|
70,820
|
|
|
68,344
|
|
|||||||
Income taxes
|
|
9,175
|
|
|
12,758
|
|
|
83,199
|
|
|
84,801
|
|
|
79,422
|
|
|
80,725
|
|
|
69,117
|
|
|||||||
Interest capitalized
|
|
(1,671
|
)
|
|
(1,040
|
)
|
|
(5,375
|
)
|
|
(3,727
|
)
|
|
(3,265
|
)
|
|
(3,954
|
)
|
|
(7,097
|
)
|
|||||||
Earnings available for fixed charges
|
|
$
|
54,751
|
|
|
$
|
52,318
|
|
|
$
|
274,246
|
|
|
$
|
296,580
|
|
|
$
|
284,632
|
|
|
$
|
286,312
|
|
|
$
|
254,373
|
|
Ratio of earnings to fixed charges
|
|
2.81
|
|
|
2.77
|
|
|
3.64
|
|
|
4.11
|
|
|
3.97
|
|
|
4.04
|
|
|
3.72
|
|
Date: May 10, 2018
|
|
|
/s/ Constance H. Lau
|
|
Constance H. Lau
|
|
President and Chief Executive Officer
|
Date: May 10, 2018
|
|
|
/s/ Gregory C. Hazelton
|
|
Gregory C. Hazelton
|
|
Executive Vice President and Chief Financial Officer
|
Date: May 10, 2018
|
|
|
/s/ Alan M. Oshima
|
|
Alan M. Oshima
|
|
President and Chief Executive Officer
|
Date: May 10, 2018
|
|
|
/s/ Tayne S. Y. Sekimura
|
|
Tayne S. Y. Sekimura
|
|
Senior Vice President and Chief Financial Officer
|
Date: May 10, 2018
|
|
/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: May 10, 2018
|
|
/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
|