Exact Name of Registrant as
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Commission
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I.R.S. Employer
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Specified in Its Charter
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File Number
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Identification No.
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HAWAIIAN ELECTRIC INDUSTRIES, INC.
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1-8503
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99-0208097
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and Principal Subsidiary
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||||
HAWAIIAN ELECTRIC COMPANY, INC.
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1-4955
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99-0040500
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Hawaiian Electric Industries, Inc. Yes
x
No
o
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Hawaiian Electric Company, Inc. Yes
x
No
o
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Hawaiian Electric Industries, Inc. Yes
x
No
o
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Hawaiian Electric Company, Inc. Yes
x
No
o
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Hawaiian Electric Industries, Inc.
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Large accelerated filer
x
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Hawaiian Electric Company, Inc.
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Large accelerated filer
o
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Accelerated filer
o
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Accelerated filer
o
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Non-accelerated filer
o
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Non-accelerated filer
x
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(Do not check if a smaller reporting company)
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(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Smaller reporting company
o
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Emerging growth company
o
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Emerging growth company
o
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Hawaiian Electric Industries, Inc.
o
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Hawaiian Electric Company, Inc.
o
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Hawaiian Electric Industries, Inc. Yes
o
No
x
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Hawaiian Electric Company, Inc. Yes
o
No
x
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Class of Common Stock
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Outstanding July 27, 2018
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Hawaiian Electric Industries, Inc. (Without Par Value)
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108,879,245 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
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Company
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Hawaiian Electric Industries, Inc. and its direct and indirect subsidiaries, including, without limitation, Hawaiian Electric Company, Inc. and its subsidiaries (listed under Hawaiian Electric); ASB Hawaii, Inc. and its subsidiary, American Savings Bank, F.S.B.; 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)
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Consumer Advocate
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Division of Consumer Advocacy, Department of Commerce and Consumer Affairs of the State of Hawaii
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CBRE
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Community-based renewable energy
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DER
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Distributed energy resources
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D&O
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Decision and order from the PUC
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Dodd-Frank Act
|
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Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
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DOH
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Department of Health of the State of Hawaii
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DRIP
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HEI Dividend Reinvestment and Stock Purchase Plan
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ECAC
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Energy cost adjustment clause
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ECRC
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Energy cost recovery clause
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EIP
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2010 Equity and Incentive Plan, as amended and restated
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EPA
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Environmental Protection Agency — federal
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EPS
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Earnings per share
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ERP/EAM
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Enterprise Resource Planning/Enterprise Asset Management
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EVE
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Economic value of equity
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Exchange Act
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Securities Exchange Act of 1934
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FASB
|
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Financial Accounting Standards Board
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FDIC
|
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Federal Deposit Insurance Corporation
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federal
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U.S. Government
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FHLB
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Federal Home Loan Bank
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FHLMC
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Federal Home Loan Mortgage Corporation
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FNMA
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Federal National Mortgage Association
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FRB
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Federal Reserve Board
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GAAP
|
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Accounting principles generally accepted in the United States of America
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Terms
|
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Definitions
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GNMA
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Government National Mortgage Association
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Hawaii Electric Light
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Hawaii Electric Light Company, Inc., an electric utility subsidiary of Hawaiian Electric Company, Inc.
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Hawaiian Electric
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Hawaiian Electric Company, Inc., an electric utility subsidiary of Hawaiian Electric Industries, Inc. and parent company of Hawaii Electric Light Company, Inc., Maui Electric Company, Limited, HECO Capital Trust III (unconsolidated financing subsidiary), Renewable Hawaii, Inc. and Uluwehiokama Biofuels Corp.
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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.
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HEI
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Hawaiian Electric Industries, Inc., direct parent company of Hawaiian Electric Company, Inc., ASB Hawaii, Inc., HEI Properties, Inc. (dissolved in 2015 and wound up in 2017), The Old Oahu Tug Service, Inc. (formerly Hawaiian Tug & Barge Corp.) and Pacific Current, LLC
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HEIRSP
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Hawaiian Electric Industries Retirement Savings Plan
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HELOC
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Home equity line of credit
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HPOWER
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City and County of Honolulu with respect to a power purchase agreement for a refuse-fired plant
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IPP
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Independent power producer
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Kalaeloa
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Kalaeloa Partners, L.P.
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KWH
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Kilowatthour/s (as applicable)
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LTIP
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Long-term incentive plan
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Maui Electric
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Maui Electric Company, Limited, an electric utility subsidiary of Hawaiian Electric Company, Inc.
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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
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NII
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Net interest income
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NPBC
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Net periodic benefit costs
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NPPC
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Net periodic pension costs
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O&M
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Other operation and maintenance
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OCC
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Office of the Comptroller of the Currency
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OPEB
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Postretirement benefits other than pensions
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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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PIMs
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Performance incentive mechanisms
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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
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Request for proposals
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ROACE
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Return on average common equity
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RORB
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Return on rate base
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RPS
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Renewable portfolio standards
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SEC
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Securities and Exchange Commission
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See
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Means the referenced material is incorporated by reference
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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)
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TDR
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Troubled debt restructuring
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Trust III
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HECO Capital Trust III
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Utilities
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Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited
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VIE
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Variable interest entity
|
•
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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; potential conflict or crisis with North Korea; and potential pandemics);
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•
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the effects of future actions or inaction of the U.S. government or related agencies, including those related to the U.S. debt ceiling, monetary policy, trade policy and tariffs, and other policy and regulation changes advanced or proposed by President Trump and his administration;
|
•
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weather and natural disasters (e.g., hurricanes, earthquakes, tsunamis, lightning strikes, lava flows and the potential effects of climate change, such as more severe storms and rising sea levels), including their impact on the Company's and Utilities' operations and the economy;
|
•
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the timing and extent of changes in interest rates and the shape of the yield curve;
|
•
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the ability of the Company and the Utilities to access the credit and capital markets (e.g., to obtain commercial paper and other short-term and long-term debt financing, including lines of credit, and, in the case of HEI, to issue common stock) under volatile and challenging market conditions, and the cost of such financings, if available;
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•
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the risks inherent in changes in the value of the Company’s pension and other retirement plan assets and ASB’s securities available for sale;
|
•
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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;
|
•
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the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) and of the rules and regulations that the Dodd-Frank Act requires to be promulgated;
|
•
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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 ability of the Utilities to achieve performance incentive mechanisms currently in place;
|
•
|
the impact from the PUC’s implementation of performance-based ratemaking for the Utilities pursuant to Senate Bill No. 2939 SD2, including the potential addition of new performance incentive mechanisms, third party proposals to the PUC’s implementation of PBR, and the implications of not achieving performance incentive goals;
|
•
|
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, its third-party vendors, and its subsidiaries (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;
|
•
|
any failure in the implementation of the ERP/EAM system could adversely affect the Utilities’ ability to timely and accurately report financial information and make payments to vendors and employees;
|
•
|
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 and its subsidiaries, 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/finance lease or on-balance-sheet operating 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 and its subsidiaries;
|
•
|
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);
|
•
|
the ability of the Company’s non-regulated subsidiary, Pacific Current, LLC, to achieve its performance and growth objectives, which in turn could affect its ability to service its non-recourse debt;
|
•
|
the Company’s reliance on third parties and the risk of their non-performance; 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 June 30
|
|
Six months ended June 30
|
||||||||||||
(in thousands, except per share amounts)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electric utility
|
|
$
|
608,126
|
|
|
$
|
556,875
|
|
|
$
|
1,178,553
|
|
|
$
|
1,075,486
|
|
Bank
|
|
77,104
|
|
|
75,329
|
|
|
152,523
|
|
|
148,185
|
|
||||
Other
|
|
47
|
|
|
77
|
|
|
75
|
|
|
172
|
|
||||
Total revenues
|
|
685,277
|
|
|
632,281
|
|
|
1,331,151
|
|
|
1,223,843
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electric utility
|
|
552,982
|
|
|
500,393
|
|
|
1,072,040
|
|
|
968,643
|
|
||||
Bank
|
|
50,187
|
|
|
50,332
|
|
|
100,719
|
|
|
98,833
|
|
||||
Other
|
|
3,309
|
|
|
3,754
|
|
|
7,704
|
|
|
8,827
|
|
||||
Total expenses
|
|
606,478
|
|
|
554,479
|
|
|
1,180,463
|
|
|
1,076,303
|
|
||||
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electric utility
|
|
55,144
|
|
|
56,482
|
|
|
106,513
|
|
|
106,843
|
|
||||
Bank
|
|
26,917
|
|
|
24,997
|
|
|
51,804
|
|
|
49,352
|
|
||||
Other
|
|
(3,262
|
)
|
|
(3,677
|
)
|
|
(7,629
|
)
|
|
(8,655
|
)
|
||||
Total operating income
|
|
78,799
|
|
|
77,802
|
|
|
150,688
|
|
|
147,540
|
|
||||
Retirement defined benefits expense—other than service costs
|
|
(1,564
|
)
|
|
(1,906
|
)
|
|
(3,397
|
)
|
|
(3,782
|
)
|
||||
Interest expense, net—other than on deposit liabilities and other bank borrowings
|
|
(22,001
|
)
|
|
(20,440
|
)
|
|
(43,519
|
)
|
|
(40,008
|
)
|
||||
Allowance for borrowed funds used during construction
|
|
1,365
|
|
|
1,143
|
|
|
2,809
|
|
|
2,032
|
|
||||
Allowance for equity funds used during construction
|
|
2,983
|
|
|
3,027
|
|
|
6,277
|
|
|
5,426
|
|
||||
Income before income taxes
|
|
59,582
|
|
|
59,626
|
|
|
112,858
|
|
|
111,208
|
|
||||
Income taxes
|
|
13,055
|
|
|
20,492
|
|
|
25,611
|
|
|
37,408
|
|
||||
Net income
|
|
46,527
|
|
|
39,134
|
|
|
87,247
|
|
|
73,800
|
|
||||
Preferred stock dividends of subsidiaries
|
|
473
|
|
|
473
|
|
|
946
|
|
|
946
|
|
||||
Net income for common stock
|
|
$
|
46,054
|
|
|
$
|
38,661
|
|
|
$
|
86,301
|
|
|
$
|
72,854
|
|
Basic earnings per common share
|
|
$
|
0.42
|
|
|
$
|
0.36
|
|
|
$
|
0.79
|
|
|
$
|
0.67
|
|
Diluted earnings per common share
|
|
$
|
0.42
|
|
|
$
|
0.36
|
|
|
$
|
0.79
|
|
|
$
|
0.67
|
|
Dividends declared per common share
|
|
$
|
0.31
|
|
|
$
|
0.31
|
|
|
$
|
0.62
|
|
|
$
|
0.62
|
|
Weighted-average number of common shares outstanding
|
|
108,842
|
|
|
108,750
|
|
|
108,830
|
|
|
108,712
|
|
||||
Net effect of potentially dilutive shares
|
|
121
|
|
|
47
|
|
|
223
|
|
|
157
|
|
||||
Weighted-average shares assuming dilution
|
|
108,963
|
|
|
108,797
|
|
|
109,053
|
|
|
108,869
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
(in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income for common stock
|
|
$
|
46,054
|
|
|
$
|
38,661
|
|
|
$
|
86,301
|
|
|
$
|
72,854
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized gains (losses) on available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, net of tax benefits (taxes) of $1,592, $(1,334), $6,459 and $(1,482), respectively
|
|
(4,348
|
)
|
|
2,021
|
|
|
(17,645
|
)
|
|
2,244
|
|
||||
Derivatives qualifying as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reclassification adjustment to net income, net of tax benefits of nil, nil, 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 $1,862, $2,508, $3,654 and $5,010, respectively
|
|
5,350
|
|
|
3,930
|
|
|
10,496
|
|
|
7,851
|
|
||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $1,674, $2,281, $3,277 and $4,582, respectively
|
|
(4,827
|
)
|
|
(3,581
|
)
|
|
(9,449
|
)
|
|
(7,194
|
)
|
||||
Other comprehensive income (loss), net of taxes
|
|
(3,825
|
)
|
|
2,370
|
|
|
(16,598
|
)
|
|
3,355
|
|
||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
42,229
|
|
|
$
|
41,031
|
|
|
$
|
69,703
|
|
|
$
|
76,209
|
|
(dollars in thousands)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
254,665
|
|
|
$
|
261,881
|
|
Accounts receivable and unbilled revenues, net
|
|
299,771
|
|
|
263,209
|
|
||
Available-for-sale investment securities, at fair value
|
|
1,409,528
|
|
|
1,401,198
|
|
||
Held-to-maturity investment securities, at amortized cost
|
|
62,630
|
|
|
44,515
|
|
||
Stock in Federal Home Loan Bank, at cost
|
|
10,158
|
|
|
9,706
|
|
||
Loans held for investment, net
|
|
4,721,941
|
|
|
4,617,131
|
|
||
Loans held for sale, at lower of cost or fair value
|
|
5,248
|
|
|
11,250
|
|
||
Property, plant and equipment, net of accumulated depreciation of $2,615,259 and $2,553,295 at June 30, 2018 and December 31, 2017, respectively
|
|
4,611,949
|
|
|
4,460,248
|
|
||
Regulatory assets
|
|
860,410
|
|
|
869,297
|
|
||
Other
|
|
565,614
|
|
|
513,535
|
|
||
Goodwill
|
|
82,190
|
|
|
82,190
|
|
||
Total assets
|
|
$
|
12,884,104
|
|
|
$
|
12,534,160
|
|
Liabilities and shareholders’ equity
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
213,832
|
|
|
$
|
193,714
|
|
Interest and dividends payable
|
|
27,594
|
|
|
25,837
|
|
||
Deposit liabilities
|
|
6,116,109
|
|
|
5,890,597
|
|
||
Short-term borrowings—other than bank
|
|
202,857
|
|
|
117,945
|
|
||
Other bank borrowings
|
|
126,930
|
|
|
190,859
|
|
||
Long-term debt, net—other than bank
|
|
1,783,009
|
|
|
1,683,797
|
|
||
Deferred income taxes
|
|
375,832
|
|
|
388,430
|
|
||
Regulatory liabilities
|
|
905,216
|
|
|
880,770
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
494,541
|
|
|
509,514
|
|
||
Other
|
|
500,873
|
|
|
521,018
|
|
||
Total liabilities
|
|
10,746,793
|
|
|
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: 108,879,245 shares and 108,787,807 shares at June 30, 2018 and December 31, 2017, respectively
|
|
1,665,901
|
|
|
1,662,491
|
|
||
Retained earnings
|
|
495,656
|
|
|
476,836
|
|
||
Accumulated other comprehensive loss, net of tax benefits
|
|
(58,539
|
)
|
|
(41,941
|
)
|
||
Total shareholders’ equity
|
|
2,103,018
|
|
|
2,097,386
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
12,884,104
|
|
|
$
|
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
|
|
—
|
|
|
—
|
|
|
86,301
|
|
|
—
|
|
|
86,301
|
|
||||
Other comprehensive loss, net of tax benefits
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,598
|
)
|
|
(16,598
|
)
|
||||
Issuance of common stock, net of expenses
|
|
91
|
|
|
3,410
|
|
|
—
|
|
|
—
|
|
|
3,410
|
|
||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
(67,481
|
)
|
|
—
|
|
|
(67,481
|
)
|
||||
Balance, June 30, 2018
|
|
108,879
|
|
|
$
|
1,665,901
|
|
|
$
|
495,656
|
|
|
$
|
(58,539
|
)
|
|
$
|
2,103,018
|
|
Balance, December 31, 2016
|
|
108,583
|
|
|
$
|
1,660,910
|
|
|
$
|
438,972
|
|
|
$
|
(33,129
|
)
|
|
$
|
2,066,753
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
72,854
|
|
|
—
|
|
|
72,854
|
|
||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,355
|
|
|
3,355
|
|
||||
Issuance of common stock, net of expenses
|
|
202
|
|
|
(507
|
)
|
|
—
|
|
|
—
|
|
|
(507
|
)
|
||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
(67,426
|
)
|
|
—
|
|
|
(67,426
|
)
|
||||
Balance, June 30, 2017
|
|
108,785
|
|
|
$
|
1,660,403
|
|
|
$
|
444,400
|
|
|
$
|
(29,774
|
)
|
|
$
|
2,075,029
|
|
|
|
Six months ended June 30
|
||||||
(in thousands)
|
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
87,247
|
|
|
$
|
73,800
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||
Depreciation of property, plant and equipment
|
|
106,063
|
|
|
100,062
|
|
||
Other amortization
|
|
20,603
|
|
|
6,101
|
|
||
Provision for loan losses
|
|
6,304
|
|
|
6,741
|
|
||
Loans originated and purchased, held for sale
|
|
(78,313
|
)
|
|
(69,595
|
)
|
||
Proceeds from sale of loans, held for sale
|
|
77,382
|
|
|
79,944
|
|
||
Deferred income taxes
|
|
(9,672
|
)
|
|
17,047
|
|
||
Share-based compensation expense
|
|
4,414
|
|
|
3,285
|
|
||
Allowance for equity funds used during construction
|
|
(6,277
|
)
|
|
(5,426
|
)
|
||
Other
|
|
(147
|
)
|
|
246
|
|
||
Changes in assets and liabilities
|
|
|
|
|
|
|
||
Increase in accounts receivable and unbilled revenues, net
|
|
(41,526
|
)
|
|
(12,394
|
)
|
||
Increase in fuel oil stock
|
|
(19,867
|
)
|
|
(5,962
|
)
|
||
Decrease (increase) in regulatory assets
|
|
(19,600
|
)
|
|
8,179
|
|
||
Increase in accounts, interest and dividends payable
|
|
31,784
|
|
|
43,530
|
|
||
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes
|
|
(26,558
|
)
|
|
(37,954
|
)
|
||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability
|
|
(871
|
)
|
|
420
|
|
||
Change in other assets and liabilities
|
|
(22,695
|
)
|
|
(33,922
|
)
|
||
Net cash provided by operating activities
|
|
108,271
|
|
|
174,102
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
||
Available-for-sale investment securities purchased
|
|
(133,698
|
)
|
|
(295,510
|
)
|
||
Principal repayments on available-for-sale investment securities
|
|
108,379
|
|
|
99,663
|
|
||
Purchases of held-to-maturity investment securities
|
|
(20,450
|
)
|
|
—
|
|
||
Principal repayments of held-to-maturity investment securities
|
|
2,270
|
|
|
—
|
|
||
Purchase of stock from Federal Home Loan Bank
|
|
(7,533
|
)
|
|
(2,868
|
)
|
||
Redemption of stock from Federal Home Loan Bank
|
|
7,080
|
|
|
2,380
|
|
||
Net increase in loans held for investment
|
|
(111,521
|
)
|
|
(20,326
|
)
|
||
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
|
|
(259,898
|
)
|
|
(210,325
|
)
|
||
Contributions in aid of construction
|
|
13,573
|
|
|
17,571
|
|
||
Contributions to low income housing investments
|
|
(3,279
|
)
|
|
—
|
|
||
Other
|
|
5,919
|
|
|
8,216
|
|
||
Net cash used in investing activities
|
|
(391,420
|
)
|
|
(387,521
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
||
Net increase in deposit liabilities
|
|
123,137
|
|
|
175,457
|
|
||
Net increase in short-term borrowings with original maturities of three months or less
|
|
84,881
|
|
|
49,789
|
|
||
Net increase in retail repurchase agreements
|
|
38,446
|
|
|
9,048
|
|
||
Proceeds from other bank borrowings
|
|
177,000
|
|
|
59,500
|
|
||
Repayments of other bank borrowings
|
|
(177,000
|
)
|
|
(73,034
|
)
|
||
Proceeds from issuance of long-term debt
|
|
100,000
|
|
|
265,000
|
|
||
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds
|
|
(878
|
)
|
|
(265,000
|
)
|
||
Withheld shares for employee taxes on vested share-based compensation
|
|
(996
|
)
|
|
(3,787
|
)
|
||
Common stock dividends
|
|
(67,481
|
)
|
|
(67,426
|
)
|
||
Preferred stock dividends of subsidiaries
|
|
(946
|
)
|
|
(946
|
)
|
||
Other
|
|
(230
|
)
|
|
(3,253
|
)
|
||
Net cash provided by financing activities
|
|
275,933
|
|
|
145,348
|
|
||
Net decrease in cash and cash equivalents
|
|
(7,216
|
)
|
|
(68,071
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
261,881
|
|
|
278,452
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
254,665
|
|
|
$
|
210,381
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
(in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues
|
|
$
|
608,126
|
|
|
$
|
556,875
|
|
|
$
|
1,178,553
|
|
|
$
|
1,075,486
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuel oil
|
|
171,717
|
|
|
141,259
|
|
|
338,685
|
|
|
285,529
|
|
||||
Purchased power
|
|
160,738
|
|
|
153,067
|
|
|
300,648
|
|
|
280,191
|
|
||||
Other operation and maintenance
|
|
112,642
|
|
|
104,939
|
|
|
220,252
|
|
|
203,756
|
|
||||
Depreciation
|
|
50,361
|
|
|
48,156
|
|
|
100,827
|
|
|
96,372
|
|
||||
Taxes, other than income taxes
|
|
57,524
|
|
|
52,972
|
|
|
111,628
|
|
|
102,795
|
|
||||
Total expenses
|
|
552,982
|
|
|
500,393
|
|
|
1,072,040
|
|
|
968,643
|
|
||||
Operating income
|
|
55,144
|
|
|
56,482
|
|
|
106,513
|
|
|
106,843
|
|
||||
Allowance for equity funds used during construction
|
|
2,983
|
|
|
3,027
|
|
|
6,277
|
|
|
5,426
|
|
||||
Retirement defined benefits expense—other than service costs
|
|
(988
|
)
|
|
(1,435
|
)
|
|
(2,252
|
)
|
|
(2,858
|
)
|
||||
Interest expense and other charges, net
|
|
(18,160
|
)
|
|
(18,214
|
)
|
|
(35,854
|
)
|
|
(35,718
|
)
|
||||
Allowance for borrowed funds used during construction
|
|
1,365
|
|
|
1,143
|
|
|
2,809
|
|
|
2,032
|
|
||||
Income before income taxes
|
|
40,344
|
|
|
41,003
|
|
|
77,493
|
|
|
75,725
|
|
||||
Income taxes
|
|
8,676
|
|
|
14,860
|
|
|
17,851
|
|
|
27,618
|
|
||||
Net income
|
|
31,668
|
|
|
26,143
|
|
|
59,642
|
|
|
48,107
|
|
||||
Preferred stock dividends of subsidiaries
|
|
229
|
|
|
229
|
|
|
458
|
|
|
458
|
|
||||
Net income attributable to Hawaiian Electric
|
|
31,439
|
|
|
25,914
|
|
|
59,184
|
|
|
47,649
|
|
||||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
270
|
|
|
540
|
|
|
540
|
|
||||
Net income for common stock
|
|
$
|
31,169
|
|
|
$
|
25,644
|
|
|
$
|
58,644
|
|
|
$
|
47,109
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
(in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income for common stock
|
|
$
|
31,169
|
|
|
$
|
25,644
|
|
|
$
|
58,644
|
|
|
$
|
47,109
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives qualifying as cash flow hedges:
|
|
|
|
|
|
|
|
|
||||||||
Reclassification adjustment to net income, net of tax benefits of nil, nil, 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 $1,683, $2,306, $3,297 and $4,610, respectively
|
|
4,853
|
|
|
3,621
|
|
|
9,506
|
|
|
7,239
|
|
||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $1,674, $2,281, $3,277 and $4,582, respectively
|
|
(4,827
|
)
|
|
(3,581
|
)
|
|
(9,449
|
)
|
|
(7,194
|
)
|
||||
Other comprehensive income, net of taxes
|
|
26
|
|
|
40
|
|
|
57
|
|
|
499
|
|
||||
Comprehensive income attributable to Hawaiian Electric Company, Inc.
|
|
$
|
31,195
|
|
|
$
|
25,684
|
|
|
$
|
58,701
|
|
|
$
|
47,608
|
|
(dollars in thousands, except par value)
|
|
June 30, 2018
|
|
|
December 31, 2017
|
|
||
Assets
|
|
|
|
|
|
|
||
Property, plant and equipment
|
|
|
|
|
||||
Utility property, plant and equipment
|
|
|
|
|
|
|
||
Land
|
|
$
|
52,914
|
|
|
$
|
53,177
|
|
Plant and equipment
|
|
6,652,982
|
|
|
6,401,040
|
|
||
Less accumulated depreciation
|
|
(2,534,428
|
)
|
|
(2,476,352
|
)
|
||
Construction in progress
|
|
165,608
|
|
|
263,094
|
|
||
Utility property, plant and equipment, net
|
|
4,337,076
|
|
|
4,240,959
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation of $1,253 as of June 30, 2018 and $1,251 as of December 31, 2017
|
|
7,581
|
|
|
7,580
|
|
||
Total property, plant and equipment, net
|
|
4,344,657
|
|
|
4,248,539
|
|
||
Current assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
20,860
|
|
|
12,517
|
|
||
Customer accounts receivable, net
|
|
157,260
|
|
|
127,889
|
|
||
Accrued unbilled revenues, net
|
|
110,839
|
|
|
107,054
|
|
||
Other accounts receivable, net
|
|
6,896
|
|
|
7,163
|
|
||
Fuel oil stock, at average cost
|
|
107,016
|
|
|
86,873
|
|
||
Materials and supplies, at average cost
|
|
57,941
|
|
|
54,397
|
|
||
Prepayments and other
|
|
29,240
|
|
|
25,355
|
|
||
Regulatory assets
|
|
103,566
|
|
|
88,390
|
|
||
Total current assets
|
|
593,618
|
|
|
509,638
|
|
||
Other long-term assets
|
|
|
|
|
|
|
||
Regulatory assets
|
|
756,844
|
|
|
780,907
|
|
||
Other
|
|
108,595
|
|
|
91,529
|
|
||
Total other long-term assets
|
|
865,439
|
|
|
872,436
|
|
||
Total assets
|
|
$
|
5,803,714
|
|
|
$
|
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 June 30, 2018 and December 31, 2017)
|
|
$
|
107,634
|
|
|
$
|
107,634
|
|
Premium on capital stock
|
|
614,667
|
|
|
614,675
|
|
||
Retained earnings
|
|
1,131,185
|
|
|
1,124,193
|
|
||
Accumulated other comprehensive loss, net of tax benefits
|
|
(1,162
|
)
|
|
(1,219
|
)
|
||
Common stock equity
|
|
1,852,324
|
|
|
1,845,283
|
|
||
Cumulative preferred stock — not subject to mandatory redemption
|
|
34,293
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
1,418,474
|
|
|
1,318,516
|
|
||
Total capitalization
|
|
3,305,091
|
|
|
3,198,092
|
|
||
Commitments and contingencies (Note 3)
|
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
|
||
Current portion of long-term debt
|
|
49,983
|
|
|
49,963
|
|
||
Short-term borrowings from non-affiliates
|
|
91,880
|
|
|
4,999
|
|
||
Accounts payable
|
|
153,759
|
|
|
159,610
|
|
||
Interest and preferred dividends payable
|
|
22,684
|
|
|
22,575
|
|
||
Taxes accrued, including revenue taxes
|
|
172,063
|
|
|
199,101
|
|
||
Regulatory liabilities
|
|
9,787
|
|
|
3,401
|
|
||
Other
|
|
59,203
|
|
|
59,456
|
|
||
Total current liabilities
|
|
559,359
|
|
|
499,105
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
||
Deferred income taxes
|
|
388,875
|
|
|
394,041
|
|
||
Regulatory liabilities
|
|
895,429
|
|
|
877,369
|
|
||
Unamortized tax credits
|
|
92,798
|
|
|
90,369
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
457,953
|
|
|
472,948
|
|
||
Other
|
|
104,209
|
|
|
98,689
|
|
||
Total deferred credits and other liabilities
|
|
1,939,264
|
|
|
1,933,416
|
|
||
Total capitalization and liabilities
|
|
$
|
5,803,714
|
|
|
$
|
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
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58,644
|
|
|
—
|
|
|
58,644
|
|
|||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|
57
|
|
|||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(51,652
|
)
|
|
—
|
|
|
(51,652
|
)
|
|||||
Common stock issuance expenses
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Balance, June 30, 2018
|
|
16,142
|
|
|
$
|
107,634
|
|
|
$
|
614,667
|
|
|
$
|
1,131,185
|
|
|
$
|
(1,162
|
)
|
|
$
|
1,852,324
|
|
Balance, December 31, 2016
|
|
16,020
|
|
|
$
|
106,818
|
|
|
$
|
601,491
|
|
|
$
|
1,091,800
|
|
|
$
|
(322
|
)
|
|
$
|
1,799,787
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,109
|
|
|
—
|
|
|
47,109
|
|
|||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
499
|
|
|
499
|
|
|||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43,884
|
)
|
|
—
|
|
|
(43,884
|
)
|
|||||
Common stock issuance expenses
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||||
Balance, June 30, 2017
|
|
16,020
|
|
|
$
|
106,818
|
|
|
$
|
601,486
|
|
|
$
|
1,095,025
|
|
|
$
|
177
|
|
|
$
|
1,803,506
|
|
|
|
Six months ended June 30
|
||||||
(in thousands)
|
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
59,642
|
|
|
$
|
48,107
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||
Depreciation of property, plant and equipment
|
|
100,827
|
|
|
96,372
|
|
||
Other amortization
|
|
13,021
|
|
|
4,262
|
|
||
Deferred income taxes
|
|
(8,343
|
)
|
|
23,599
|
|
||
Allowance for equity funds used during construction
|
|
(6,277
|
)
|
|
(5,426
|
)
|
||
Other
|
|
978
|
|
|
1,615
|
|
||
Changes in assets and liabilities
|
|
|
|
|
|
|
||
Increase in accounts receivable
|
|
(34,068
|
)
|
|
(1,729
|
)
|
||
Increase in accrued unbilled revenues
|
|
(3,785
|
)
|
|
(11,903
|
)
|
||
Increase in fuel oil stock
|
|
(20,143
|
)
|
|
(5,962
|
)
|
||
Increase in materials and supplies
|
|
(3,544
|
)
|
|
(3,420
|
)
|
||
Decrease (increase) in regulatory assets
|
|
(19,600
|
)
|
|
8,179
|
|
||
Increase in accounts payable
|
|
18,284
|
|
|
39,716
|
|
||
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
|
(31,061
|
)
|
|
(40,910
|
)
|
||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability
|
|
(1,961
|
)
|
|
302
|
|
||
Change in other assets and liabilities
|
|
5,866
|
|
|
(14,047
|
)
|
||
Net cash provided by operating activities
|
|
69,836
|
|
|
138,755
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(213,220
|
)
|
|
(190,159
|
)
|
||
Contributions in aid of construction
|
|
13,573
|
|
|
17,571
|
|
||
Other
|
|
4,301
|
|
|
6,250
|
|
||
Net cash used in investing activities
|
|
(195,346
|
)
|
|
(166,338
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
||
Common stock dividends
|
|
(51,652
|
)
|
|
(43,884
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(998
|
)
|
|
(998
|
)
|
||
Proceeds from issuance of long-term debt
|
|
100,000
|
|
|
265,000
|
|
||
Funds transferred for redemption of special purpose revenue bonds
|
|
—
|
|
|
(265,000
|
)
|
||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
86,881
|
|
|
43,990
|
|
||
Other
|
|
(378
|
)
|
|
(3,229
|
)
|
||
Net cash provided by (used in) financing activities
|
|
133,853
|
|
|
(4,121
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
|
8,343
|
|
|
(31,704
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
12,517
|
|
|
74,286
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
20,860
|
|
|
$
|
42,582
|
|
•
|
Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income.
|
•
|
Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes.
|
•
|
Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables).
|
•
|
Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost.
|
|
Three months ended June 30, 2017
|
|
Six months ended June 30, 2017
|
||||||||||||||||
(in thousands)
|
As previously filed
|
Adjustment from adoption of ASU No. 2017-07
|
As currently reported
|
|
As previously filed
|
Adjustment from adoption of ASU No. 2017-07
|
As currently reported
|
||||||||||||
HEI Condensed Consolidated Income Statement
|
|
|
|
|
|
||||||||||||||
Expenses
|
|
|
|
|
|
|
|
||||||||||||
Electric utility
|
$
|
501,828
|
|
$
|
(1,435
|
)
|
$
|
500,393
|
|
|
$
|
971,501
|
|
$
|
(2,858
|
)
|
$
|
968,643
|
|
Bank
|
50,533
|
|
(201
|
)
|
50,332
|
|
|
99,229
|
|
(396
|
)
|
98,833
|
|
||||||
Other
|
4,024
|
|
(270
|
)
|
3,754
|
|
|
9,355
|
|
(528
|
)
|
8,827
|
|
||||||
Total expenses
|
556,385
|
|
(1,906
|
)
|
554,479
|
|
|
1,080,085
|
|
(3,782
|
)
|
1,076,303
|
|
||||||
Operating income
|
|
|
|
|
|
|
|
||||||||||||
Electric utility
|
55,047
|
|
1,435
|
|
56,482
|
|
|
103,985
|
|
2,858
|
|
106,843
|
|
||||||
Bank
|
24,796
|
|
201
|
|
24,997
|
|
|
48,956
|
|
396
|
|
49,352
|
|
||||||
Other
|
(3,947
|
)
|
270
|
|
(3,677
|
)
|
|
(9,183
|
)
|
528
|
|
(8,655
|
)
|
||||||
Total operating income
|
75,896
|
|
1,906
|
|
77,802
|
|
|
143,758
|
|
3,782
|
|
147,540
|
|
||||||
Retirement defined benefits expense--other than service costs
|
—
|
|
(1,906
|
)
|
(1,906
|
)
|
|
—
|
|
(3,782
|
)
|
(3,782
|
)
|
||||||
Hawaiian Electric Condensed Consolidated Income Statement
|
|
|
|
|
|||||||||||||||
Other operation and maintenance
|
106,374
|
|
(1,435
|
)
|
104,939
|
|
|
206,614
|
|
(2,858
|
)
|
203,756
|
|
||||||
Total expense
|
501,828
|
|
(1,435
|
)
|
500,393
|
|
|
971,501
|
|
(2,858
|
)
|
968,643
|
|
||||||
Operating income
|
55,047
|
|
1,435
|
|
56,482
|
|
|
103,985
|
|
2,858
|
|
106,843
|
|
||||||
Retirement defined benefits expense--other than service costs
|
—
|
|
(1,435
|
)
|
(1,435
|
)
|
|
—
|
|
(2,858
|
)
|
(2,858
|
)
|
||||||
Hawaiian Electric Condensed Consolidating Income Statement (in Note 3)
|
|
|
|
|
|
|
|
||||||||||||
Hawaiian Electric (parent only)
|
|
|
|
|
|
|
|
||||||||||||
Other operation and maintenance
|
70,961
|
|
(1,302
|
)
|
69,659
|
|
|
138,239
|
|
(2,587
|
)
|
135,652
|
|
||||||
Total expense
|
357,575
|
|
(1,302
|
)
|
356,273
|
|
|
690,763
|
|
(2,587
|
)
|
688,176
|
|
||||||
Operating income
|
36,839
|
|
1,302
|
|
38,141
|
|
|
66,494
|
|
2,587
|
|
69,081
|
|
||||||
Retirement defined benefits expense--other than service costs
|
—
|
|
(1,302
|
)
|
(1,302
|
)
|
|
—
|
|
(2,587
|
)
|
(2,587
|
)
|
||||||
Hawaii Electric Light
|
|
|
|
|
|
|
|
||||||||||||
Other operation and maintenance
|
17,558
|
|
85
|
|
17,643
|
|
|
33,074
|
|
168
|
|
33,242
|
|
||||||
Total expense
|
72,903
|
|
85
|
|
72,988
|
|
|
141,400
|
|
168
|
|
141,568
|
|
||||||
Operating income
|
8,807
|
|
(85
|
)
|
8,722
|
|
|
19,292
|
|
(168
|
)
|
19,124
|
|
||||||
Retirement defined benefits expense--other than service costs
|
—
|
|
85
|
|
85
|
|
|
—
|
|
168
|
|
168
|
|
||||||
Maui Electric
|
|
|
|
|
|
|
|
||||||||||||
Other operation and maintenance
|
17,855
|
|
(218
|
)
|
17,637
|
|
|
35,301
|
|
(439
|
)
|
34,862
|
|
||||||
Total expense
|
71,350
|
|
(218
|
)
|
71,132
|
|
|
139,338
|
|
(439
|
)
|
138,899
|
|
||||||
Operating income
|
9,415
|
|
218
|
|
9,633
|
|
|
18,220
|
|
439
|
|
18,659
|
|
||||||
Retirement defined benefits expense--other than service costs
|
—
|
|
(218
|
)
|
(218
|
)
|
|
—
|
|
(439
|
)
|
(439
|
)
|
||||||
ASB Statements of Income Data (in Note 4)
|
|
|
|
|
|
|
|||||||||||||
Compensation and employee benefits
|
24,742
|
|
(201
|
)
|
24,541
|
|
|
47,979
|
|
(396
|
)
|
47,583
|
|
||||||
Other expense
|
4,705
|
|
201
|
|
4,906
|
|
|
9,016
|
|
396
|
|
9,412
|
|
(in thousands)
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
||||||||
Three months ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
608,112
|
|
|
$
|
77,104
|
|
|
$
|
61
|
|
|
$
|
685,277
|
|
Intersegment revenues (eliminations)
|
|
14
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
||||
Revenues
|
|
$
|
608,126
|
|
|
$
|
77,104
|
|
|
$
|
47
|
|
|
$
|
685,277
|
|
Income (loss) before income taxes
|
|
$
|
40,344
|
|
|
$
|
26,514
|
|
|
$
|
(7,276
|
)
|
|
$
|
59,582
|
|
Income taxes (benefit)
|
|
8,676
|
|
|
5,953
|
|
|
(1,574
|
)
|
|
13,055
|
|
||||
Net income (loss)
|
|
31,668
|
|
|
20,561
|
|
|
(5,702
|
)
|
|
46,527
|
|
||||
Preferred stock dividends of subsidiaries
|
|
499
|
|
|
—
|
|
|
(26
|
)
|
|
473
|
|
||||
Net income (loss) for common stock
|
|
$
|
31,169
|
|
|
$
|
20,561
|
|
|
$
|
(5,676
|
)
|
|
$
|
46,054
|
|
Six months ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
1,178,526
|
|
|
$
|
152,523
|
|
|
$
|
102
|
|
|
$
|
1,331,151
|
|
Intersegment revenues (eliminations)
|
|
27
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
||||
Revenues
|
|
$
|
1,178,553
|
|
|
$
|
152,523
|
|
|
$
|
75
|
|
|
$
|
1,331,151
|
|
Income (loss) before income taxes
|
|
$
|
77,493
|
|
|
$
|
51,014
|
|
|
$
|
(15,649
|
)
|
|
$
|
112,858
|
|
Income taxes (benefit)
|
|
17,851
|
|
|
11,493
|
|
|
(3,733
|
)
|
|
25,611
|
|
||||
Net income (loss)
|
|
59,642
|
|
|
39,521
|
|
|
(11,916
|
)
|
|
87,247
|
|
||||
Preferred stock dividends of subsidiaries
|
|
998
|
|
|
—
|
|
|
(52
|
)
|
|
946
|
|
||||
Net income (loss) for common stock
|
|
$
|
58,644
|
|
|
$
|
39,521
|
|
|
$
|
(11,864
|
)
|
|
$
|
86,301
|
|
Total assets (at June 30, 2018)
|
|
$
|
5,803,714
|
|
|
$
|
6,983,583
|
|
|
$
|
96,807
|
|
|
$
|
12,884,104
|
|
Three months ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
556,836
|
|
|
$
|
75,329
|
|
|
$
|
116
|
|
|
$
|
632,281
|
|
Intersegment revenues (eliminations)
|
|
39
|
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
||||
Revenues
|
|
$
|
556,875
|
|
|
$
|
75,329
|
|
|
$
|
77
|
|
|
$
|
632,281
|
|
Income (loss) before income taxes
|
|
$
|
41,003
|
|
|
$
|
24,796
|
|
|
$
|
(6,173
|
)
|
|
$
|
59,626
|
|
Income taxes (benefit)
|
|
14,860
|
|
|
8,063
|
|
|
(2,431
|
)
|
|
20,492
|
|
||||
Net income (loss)
|
|
26,143
|
|
|
16,733
|
|
|
(3,742
|
)
|
|
39,134
|
|
||||
Preferred stock dividends of subsidiaries
|
|
499
|
|
|
—
|
|
|
(26
|
)
|
|
473
|
|
||||
Net income (loss) for common stock
|
|
$
|
25,644
|
|
|
$
|
16,733
|
|
|
$
|
(3,716
|
)
|
|
$
|
38,661
|
|
Six months ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
1,075,402
|
|
|
$
|
148,185
|
|
|
$
|
256
|
|
|
$
|
1,223,843
|
|
Intersegment revenues (eliminations)
|
|
84
|
|
|
—
|
|
|
(84
|
)
|
|
—
|
|
||||
Revenues
|
|
$
|
1,075,486
|
|
|
$
|
148,185
|
|
|
$
|
172
|
|
|
$
|
1,223,843
|
|
Income (loss) before income taxes
|
|
$
|
75,725
|
|
|
$
|
48,956
|
|
|
$
|
(13,473
|
)
|
|
$
|
111,208
|
|
Income taxes (benefit)
|
|
27,618
|
|
|
16,410
|
|
|
(6,620
|
)
|
|
37,408
|
|
||||
Net income (loss)
|
|
48,107
|
|
|
32,546
|
|
|
(6,853
|
)
|
|
73,800
|
|
||||
Preferred stock dividends of subsidiaries
|
|
998
|
|
|
—
|
|
|
(52
|
)
|
|
946
|
|
||||
Net income (loss) for common stock
|
|
$
|
47,109
|
|
|
$
|
32,546
|
|
|
$
|
(6,801
|
)
|
|
$
|
72,854
|
|
Total assets (at December 31, 2017)
|
|
$
|
5,630,613
|
|
|
$
|
6,798,659
|
|
|
$
|
104,888
|
|
|
$
|
12,534,160
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
(in millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Kalaeloa
|
|
$
|
52
|
|
|
$
|
48
|
|
|
$
|
92
|
|
|
$
|
88
|
|
AES Hawaii
|
|
32
|
|
|
35
|
|
|
69
|
|
|
64
|
|
||||
HPOWER
|
|
17
|
|
|
16
|
|
|
32
|
|
|
33
|
|
||||
Puna Geothermal Venture
|
|
4
|
|
|
10
|
|
|
15
|
|
|
18
|
|
||||
Hamakua Energy
|
|
15
|
|
|
10
|
|
|
22
|
|
|
17
|
|
||||
Other IPPs
1
|
|
41
|
|
|
34
|
|
|
71
|
|
|
60
|
|
||||
Total IPPs
|
|
$
|
161
|
|
|
$
|
153
|
|
|
$
|
301
|
|
|
$
|
280
|
|
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 in 2017 and 2018 were below the RAM Cap.
|
•
|
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 maximum penalties of approximately
$6.2 million
- pending adjustment to
$6.7 million
as a result of the final orders for the Hawaiian Electric and Hawaii Electric Light rate cases - for both indices in total for the three utilities).
|
•
|
Call Center Performance measured by the percentage of calls answered within 30 seconds. Target performance is based on the annual average performance for each utility for the most recent 8 quarters with a deadband of
3%
above and below the target. The maximum penalty or incentive is 8 basis points applied to the common equity share of each respective utility’s rate base (or maximum penalties or incentives of approximately
$1.2 million
- pending adjustment to
$1.3 million
as a result of the final orders for the Hawaiian Electric and Hawaii Electric Light rate cases - 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.
|
(in millions)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
||||||
2018 Annual incremental RAM adjusted revenues
|
|
$
|
13.8
|
|
|
$
|
3.4
|
|
|
$
|
2.0
|
|
Annual change in accrued RBA balance as of December 31, 2017 (and associated revenue taxes)
|
|
$
|
6.6
|
|
|
$
|
0.7
|
|
|
$
|
3.2
|
|
2017 Tax Act Adjustment
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2.8
|
)
|
Net annual incremental amount to be collected under the tariffs
|
|
$
|
20.4
|
|
|
$
|
4.1
|
|
|
$
|
2.4
|
|
•
|
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
|
|
$
|
431,699
|
|
|
89,548
|
|
|
86,938
|
|
|
—
|
|
|
(59
|
)
|
|
$
|
608,126
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
120,007
|
|
|
19,432
|
|
|
32,278
|
|
|
—
|
|
|
—
|
|
|
171,717
|
|
||
Purchased power
|
|
121,812
|
|
|
24,664
|
|
|
14,262
|
|
|
—
|
|
|
—
|
|
|
160,738
|
|
||
Other operation and maintenance
|
|
76,845
|
|
|
19,015
|
|
|
16,782
|
|
|
—
|
|
|
—
|
|
|
112,642
|
|
||
Depreciation
|
|
34,391
|
|
|
10,038
|
|
|
5,932
|
|
|
—
|
|
|
—
|
|
|
50,361
|
|
||
Taxes, other than income taxes
|
|
40,951
|
|
|
8,408
|
|
|
8,165
|
|
|
—
|
|
|
—
|
|
|
57,524
|
|
||
Total expenses
|
|
394,006
|
|
|
81,557
|
|
|
77,419
|
|
|
—
|
|
|
—
|
|
|
552,982
|
|
||
Operating income
|
|
37,693
|
|
|
7,991
|
|
|
9,519
|
|
|
—
|
|
|
(59
|
)
|
|
55,144
|
|
||
Allowance for equity funds used during construction
|
|
2,588
|
|
|
124
|
|
|
271
|
|
|
—
|
|
|
—
|
|
|
2,983
|
|
||
Equity in earnings of subsidiaries
|
|
9,080
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,080
|
)
|
|
—
|
|
||
Retirement defined benefits expense—other than service costs
|
|
(554
|
)
|
|
(105
|
)
|
|
(329
|
)
|
|
—
|
|
|
—
|
|
|
(988
|
)
|
||
Interest expense and other charges, net
|
|
(12,930
|
)
|
|
(2,922
|
)
|
|
(2,367
|
)
|
|
—
|
|
|
59
|
|
|
(18,160
|
)
|
||
Allowance for borrowed funds used during construction
|
|
1,150
|
|
|
77
|
|
|
138
|
|
|
—
|
|
|
—
|
|
|
1,365
|
|
||
Income before income taxes
|
|
37,027
|
|
|
5,165
|
|
|
7,232
|
|
|
—
|
|
|
(9,080
|
)
|
|
40,344
|
|
||
Income taxes
|
|
5,588
|
|
|
1,269
|
|
|
1,819
|
|
|
—
|
|
|
—
|
|
|
8,676
|
|
||
Net income
|
|
31,439
|
|
|
3,896
|
|
|
5,413
|
|
|
—
|
|
|
(9,080
|
)
|
|
31,668
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
133
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
229
|
|
||
Net income attributable to Hawaiian Electric
|
|
31,439
|
|
|
3,763
|
|
|
5,317
|
|
|
—
|
|
|
(9,080
|
)
|
|
31,439
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
||
Net income for common stock
|
|
$
|
31,169
|
|
|
3,763
|
|
|
5,317
|
|
|
—
|
|
|
(9,080
|
)
|
|
$
|
31,169
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income for common stock
|
|
$
|
31,169
|
|
|
3,763
|
|
|
5,317
|
|
|
—
|
|
|
(9,080
|
)
|
|
$
|
31,169
|
|
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
|
|
4,853
|
|
|
734
|
|
|
649
|
|
|
—
|
|
|
(1,383
|
)
|
|
4,853
|
|
||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(4,827
|
)
|
|
(733
|
)
|
|
(649
|
)
|
|
—
|
|
|
1,382
|
|
|
(4,827
|
)
|
||
Other comprehensive income, net of taxes
|
|
26
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
26
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
31,195
|
|
|
3,764
|
|
|
5,317
|
|
|
—
|
|
|
(9,081
|
)
|
|
$
|
31,195
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Revenues
|
|
$
|
394,414
|
|
|
81,710
|
|
|
80,765
|
|
|
—
|
|
|
(14
|
)
|
|
$
|
556,875
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
99,814
|
|
|
14,475
|
|
|
26,970
|
|
|
—
|
|
|
—
|
|
|
141,259
|
|
||
Purchased power
|
|
116,458
|
|
|
23,482
|
|
|
13,127
|
|
|
—
|
|
|
—
|
|
|
153,067
|
|
||
Other operation and maintenance
|
|
69,659
|
|
|
17,643
|
|
|
17,637
|
|
|
—
|
|
|
—
|
|
|
104,939
|
|
||
Depreciation
|
|
32,723
|
|
|
9,686
|
|
|
5,747
|
|
|
—
|
|
|
—
|
|
|
48,156
|
|
||
Taxes, other than income taxes
|
|
37,619
|
|
|
7,702
|
|
|
7,651
|
|
|
—
|
|
|
—
|
|
|
52,972
|
|
||
Total expenses
|
|
356,273
|
|
|
72,988
|
|
|
71,132
|
|
|
—
|
|
|
—
|
|
|
500,393
|
|
||
Operating income
|
|
38,141
|
|
|
8,722
|
|
|
9,633
|
|
|
—
|
|
|
(14
|
)
|
|
56,482
|
|
||
Allowance for equity funds used during construction
|
|
2,659
|
|
|
134
|
|
|
234
|
|
|
—
|
|
|
—
|
|
|
3,027
|
|
||
Equity in earnings of subsidiaries
|
|
7,936
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,936
|
)
|
|
—
|
|
||
Retirement defined benefits expense—other than service costs
|
|
(1,302
|
)
|
|
85
|
|
|
(218
|
)
|
|
—
|
|
|
—
|
|
|
(1,435
|
)
|
||
Interest expense and other charges, net
|
|
(12,562
|
)
|
|
(2,996
|
)
|
|
(2,670
|
)
|
|
—
|
|
|
14
|
|
|
(18,214
|
)
|
||
Allowance for borrowed funds used during construction
|
|
988
|
|
|
55
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
1,143
|
|
||
Income before income taxes
|
|
35,860
|
|
|
6,000
|
|
|
7,079
|
|
|
—
|
|
|
(7,936
|
)
|
|
41,003
|
|
||
Income taxes
|
|
9,946
|
|
|
2,235
|
|
|
2,679
|
|
|
—
|
|
|
—
|
|
|
14,860
|
|
||
Net income
|
|
25,914
|
|
|
3,765
|
|
|
4,400
|
|
|
—
|
|
|
(7,936
|
)
|
|
26,143
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
133
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
229
|
|
||
Net income attributable to Hawaiian Electric
|
|
25,914
|
|
|
3,632
|
|
|
4,304
|
|
|
—
|
|
|
(7,936
|
)
|
|
25,914
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
||
Net income for common stock
|
|
$
|
25,644
|
|
|
3,632
|
|
|
4,304
|
|
|
—
|
|
|
(7,936
|
)
|
|
$
|
25,644
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income
for common stock
|
|
$
|
25,644
|
|
|
3,632
|
|
|
4,304
|
|
|
—
|
|
|
(7,936
|
)
|
|
$
|
25,644
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
|
|
3,621
|
|
|
449
|
|
|
344
|
|
|
—
|
|
|
(793
|
)
|
|
3,621
|
|
||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(3,581
|
)
|
|
(448
|
)
|
|
(343
|
)
|
|
—
|
|
|
791
|
|
|
(3,581
|
)
|
||
Other comprehensive income, net of taxes
|
|
40
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
(2
|
)
|
|
40
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
25,684
|
|
|
3,633
|
|
|
4,305
|
|
|
—
|
|
|
(7,938
|
)
|
|
$
|
25,684
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Revenues
|
|
$
|
832,879
|
|
|
177,481
|
|
|
168,294
|
|
|
—
|
|
|
(101
|
)
|
|
$
|
1,178,553
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
234,505
|
|
|
37,919
|
|
|
66,261
|
|
|
—
|
|
|
—
|
|
|
338,685
|
|
||
Purchased power
|
|
229,182
|
|
|
48,498
|
|
|
22,968
|
|
|
—
|
|
|
—
|
|
|
300,648
|
|
||
Other operation and maintenance
|
|
149,785
|
|
|
35,113
|
|
|
35,354
|
|
|
—
|
|
|
—
|
|
|
220,252
|
|
||
Depreciation
|
|
68,830
|
|
|
20,093
|
|
|
11,904
|
|
|
—
|
|
|
—
|
|
|
100,827
|
|
||
Taxes, other than income taxes
|
|
79,118
|
|
|
16,620
|
|
|
15,890
|
|
|
—
|
|
|
—
|
|
|
111,628
|
|
||
Total expenses
|
|
761,420
|
|
|
158,243
|
|
|
152,377
|
|
|
—
|
|
|
—
|
|
|
1,072,040
|
|
||
Operating income
|
|
71,459
|
|
|
19,238
|
|
|
15,917
|
|
|
—
|
|
|
(101
|
)
|
|
106,513
|
|
||
Allowance for equity funds used during construction
|
|
5,475
|
|
|
235
|
|
|
567
|
|
|
—
|
|
|
—
|
|
|
6,277
|
|
||
Equity in earnings of subsidiaries
|
|
18,405
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,405
|
)
|
|
—
|
|
||
Retirement defined benefits expense—other than service costs
|
|
(1,616
|
)
|
|
(208
|
)
|
|
(428
|
)
|
|
—
|
|
|
—
|
|
|
(2,252
|
)
|
||
Interest expense and other charges, net
|
|
(25,425
|
)
|
|
(5,829
|
)
|
|
(4,701
|
)
|
|
—
|
|
|
101
|
|
|
(35,854
|
)
|
||
Allowance for borrowed funds used during construction
|
|
2,388
|
|
|
141
|
|
|
280
|
|
|
—
|
|
|
—
|
|
|
2,809
|
|
||
Income before income taxes
|
|
70,686
|
|
|
13,577
|
|
|
11,635
|
|
|
—
|
|
|
(18,405
|
)
|
|
77,493
|
|
||
Income taxes
|
|
11,502
|
|
|
3,446
|
|
|
2,903
|
|
|
—
|
|
|
—
|
|
|
17,851
|
|
||
Net income
|
|
59,184
|
|
|
10,131
|
|
|
8,732
|
|
|
—
|
|
|
(18,405
|
)
|
|
59,642
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
267
|
|
|
191
|
|
|
—
|
|
|
—
|
|
|
458
|
|
||
Net income attributable to Hawaiian Electric
|
|
59,184
|
|
|
9,864
|
|
|
8,541
|
|
|
—
|
|
|
(18,405
|
)
|
|
59,184
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
540
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
540
|
|
||
Net income for common stock
|
|
$
|
58,644
|
|
|
9,864
|
|
|
8,541
|
|
|
—
|
|
|
(18,405
|
)
|
|
$
|
58,644
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income for common stock
|
|
$
|
58,644
|
|
|
9,864
|
|
|
8,541
|
|
|
—
|
|
|
(18,405
|
)
|
|
$
|
58,644
|
|
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
|
|
9,506
|
|
|
1,409
|
|
|
1,211
|
|
|
—
|
|
|
(2,620
|
)
|
|
9,506
|
|
||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(9,449
|
)
|
|
(1,408
|
)
|
|
(1,211
|
)
|
|
—
|
|
|
2,619
|
|
|
(9,449
|
)
|
||
Other comprehensive income, net of taxes
|
|
57
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
57
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
58,701
|
|
|
9,865
|
|
|
8,541
|
|
|
—
|
|
|
(18,406
|
)
|
|
$
|
58,701
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Revenues
|
|
$
|
757,257
|
|
|
160,692
|
|
|
157,558
|
|
|
—
|
|
|
(21
|
)
|
|
$
|
1,075,486
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
197,815
|
|
|
31,732
|
|
|
55,982
|
|
|
—
|
|
|
—
|
|
|
285,529
|
|
||
Purchased power
|
|
216,605
|
|
|
42,071
|
|
|
21,515
|
|
|
—
|
|
|
—
|
|
|
280,191
|
|
||
Other operation and maintenance
|
|
135,652
|
|
|
33,242
|
|
|
34,862
|
|
|
—
|
|
|
—
|
|
|
203,756
|
|
||
Depreciation
|
|
65,445
|
|
|
19,371
|
|
|
11,556
|
|
|
—
|
|
|
—
|
|
|
96,372
|
|
||
Taxes, other than income taxes
|
|
72,659
|
|
|
15,152
|
|
|
14,984
|
|
|
—
|
|
|
—
|
|
|
102,795
|
|
||
Total expenses
|
|
688,176
|
|
|
141,568
|
|
|
138,899
|
|
|
—
|
|
|
—
|
|
|
968,643
|
|
||
Operating income
|
|
69,081
|
|
|
19,124
|
|
|
18,659
|
|
|
—
|
|
|
(21
|
)
|
|
106,843
|
|
||
Allowance for equity funds used during construction
|
|
4,715
|
|
|
249
|
|
|
462
|
|
|
—
|
|
|
—
|
|
|
5,426
|
|
||
Equity in earnings of subsidiaries
|
|
16,539
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,539
|
)
|
|
—
|
|
||
Retirement defined benefits expense—other than service costs
|
|
(2,587
|
)
|
|
168
|
|
|
(439
|
)
|
|
—
|
|
|
—
|
|
|
(2,858
|
)
|
||
Interest expense and other charges, net
|
|
(24,619
|
)
|
|
(6,000
|
)
|
|
(5,120
|
)
|
|
—
|
|
|
21
|
|
|
(35,718
|
)
|
||
Allowance for borrowed funds used during construction
|
|
1,737
|
|
|
100
|
|
|
195
|
|
|
—
|
|
|
—
|
|
|
2,032
|
|
||
Income before income taxes
|
|
64,866
|
|
|
13,641
|
|
|
13,757
|
|
|
—
|
|
|
(16,539
|
)
|
|
75,725
|
|
||
Income taxes
|
|
17,217
|
|
|
5,158
|
|
|
5,243
|
|
|
—
|
|
|
—
|
|
|
27,618
|
|
||
Net income
|
|
47,649
|
|
|
8,483
|
|
|
8,514
|
|
|
—
|
|
|
(16,539
|
)
|
|
48,107
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
267
|
|
|
191
|
|
|
—
|
|
|
—
|
|
|
458
|
|
||
Net income attributable to Hawaiian Electric
|
|
47,649
|
|
|
8,216
|
|
|
8,323
|
|
|
—
|
|
|
(16,539
|
)
|
|
47,649
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
540
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
540
|
|
||
Net income for common stock
|
|
$
|
47,109
|
|
|
8,216
|
|
|
8,323
|
|
|
—
|
|
|
(16,539
|
)
|
|
$
|
47,109
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income
for common stock
|
|
$
|
47,109
|
|
|
8,216
|
|
|
8,323
|
|
|
—
|
|
|
(16,539
|
)
|
|
$
|
47,109
|
|
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
|
|
7,239
|
|
|
952
|
|
|
810
|
|
|
—
|
|
|
(1,762
|
)
|
|
7,239
|
|
||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(7,194
|
)
|
|
(951
|
)
|
|
(810
|
)
|
|
—
|
|
|
1,761
|
|
|
(7,194
|
)
|
||
Other comprehensive income, net of taxes
|
|
499
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
499
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
47,608
|
|
|
8,217
|
|
|
8,323
|
|
|
—
|
|
|
(16,540
|
)
|
|
$
|
47,608
|
|
(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
|
|
$
|
44,023
|
|
|
5,876
|
|
|
3,015
|
|
|
—
|
|
|
—
|
|
|
$
|
52,914
|
|
Plant and equipment
|
|
4,363,195
|
|
|
1,217,147
|
|
|
1,072,640
|
|
|
—
|
|
|
—
|
|
|
6,652,982
|
|
||
Less accumulated depreciation
|
|
(1,491,505
|
)
|
|
(536,210
|
)
|
|
(506,713
|
)
|
|
—
|
|
|
—
|
|
|
(2,534,428
|
)
|
||
Construction in progress
|
|
127,343
|
|
|
10,154
|
|
|
28,111
|
|
|
—
|
|
|
—
|
|
|
165,608
|
|
||
Utility property, plant and equipment, net
|
|
3,043,056
|
|
|
696,967
|
|
|
597,053
|
|
|
—
|
|
|
—
|
|
|
4,337,076
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation
|
|
5,934
|
|
|
115
|
|
|
1,532
|
|
|
—
|
|
|
—
|
|
|
7,581
|
|
||
Total property, plant and equipment, net
|
|
3,048,990
|
|
|
697,082
|
|
|
598,585
|
|
|
—
|
|
|
—
|
|
|
4,344,657
|
|
||
Investment in wholly owned subsidiaries, at equity
|
|
561,764
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(561,764
|
)
|
|
—
|
|
||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
13,922
|
|
|
4,516
|
|
|
2,321
|
|
|
101
|
|
|
—
|
|
|
20,860
|
|
||
Advances to affiliates
|
|
5,600
|
|
|
1,000
|
|
|
—
|
|
|
—
|
|
|
(6,600
|
)
|
|
—
|
|
||
Customer accounts receivable, net
|
|
109,285
|
|
|
24,005
|
|
|
23,970
|
|
|
—
|
|
|
—
|
|
|
157,260
|
|
||
Accrued unbilled revenues, net
|
|
80,239
|
|
|
15,243
|
|
|
15,357
|
|
|
—
|
|
|
—
|
|
|
110,839
|
|
||
Other accounts receivable, net
|
|
10,657
|
|
|
2,561
|
|
|
1,124
|
|
|
—
|
|
|
(7,446
|
)
|
|
6,896
|
|
||
Fuel oil stock, at average cost
|
|
74,485
|
|
|
12,632
|
|
|
19,899
|
|
|
—
|
|
|
—
|
|
|
107,016
|
|
||
Materials and supplies, at average cost
|
|
31,077
|
|
|
8,600
|
|
|
18,264
|
|
|
—
|
|
|
—
|
|
|
57,941
|
|
||
Prepayments and other
|
|
21,482
|
|
|
6,329
|
|
|
2,943
|
|
|
—
|
|
|
(1,514
|
)
|
|
29,240
|
|
||
Regulatory assets
|
|
88,581
|
|
|
6,353
|
|
|
8,632
|
|
|
—
|
|
|
—
|
|
|
103,566
|
|
||
Total current assets
|
|
435,328
|
|
|
81,239
|
|
|
92,510
|
|
|
101
|
|
|
(15,560
|
)
|
|
593,618
|
|
||
Other long-term assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Regulatory assets
|
|
538,925
|
|
|
118,000
|
|
|
99,919
|
|
|
—
|
|
|
—
|
|
|
756,844
|
|
||
Other
|
|
71,486
|
|
|
19,378
|
|
|
17,731
|
|
|
—
|
|
|
—
|
|
|
108,595
|
|
||
Total other long-term assets
|
|
610,411
|
|
|
137,378
|
|
|
117,650
|
|
|
—
|
|
|
—
|
|
|
865,439
|
|
||
Total assets
|
|
$
|
4,656,493
|
|
|
915,699
|
|
|
808,745
|
|
|
101
|
|
|
(577,324
|
)
|
|
$
|
5,803,714
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock equity
|
|
$
|
1,852,324
|
|
|
288,865
|
|
|
272,798
|
|
|
101
|
|
|
(561,764
|
)
|
|
$
|
1,852,324
|
|
Cumulative preferred stock—not subject to mandatory redemption
|
|
22,293
|
|
|
7,000
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
999,915
|
|
|
217,699
|
|
|
200,860
|
|
|
—
|
|
|
—
|
|
|
1,418,474
|
|
||
Total capitalization
|
|
2,874,532
|
|
|
513,564
|
|
|
478,658
|
|
|
101
|
|
|
(561,764
|
)
|
|
3,305,091
|
|
||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Current portion of long-term debt
|
|
29,990
|
|
|
10,996
|
|
|
8,997
|
|
|
—
|
|
|
—
|
|
|
49,983
|
|
||
Short-term borrowings from non-affiliates
|
|
91,880
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91,880
|
|
||
Short-term borrowings from affiliate
|
|
1,000
|
|
|
—
|
|
|
5,600
|
|
|
—
|
|
|
(6,600
|
)
|
|
—
|
|
||
Accounts payable
|
|
115,806
|
|
|
17,405
|
|
|
20,548
|
|
|
—
|
|
|
—
|
|
|
153,759
|
|
||
Interest and preferred dividends payable
|
|
15,743
|
|
|
4,203
|
|
|
2,752
|
|
|
—
|
|
|
(14
|
)
|
|
22,684
|
|
||
Taxes accrued
|
|
120,513
|
|
|
27,353
|
|
|
25,711
|
|
|
—
|
|
|
(1,514
|
)
|
|
172,063
|
|
||
Regulatory liabilities
|
|
2,751
|
|
|
2,499
|
|
|
4,537
|
|
|
—
|
|
|
—
|
|
|
9,787
|
|
||
Other
|
|
42,449
|
|
|
10,223
|
|
|
13,963
|
|
|
—
|
|
|
(7,432
|
)
|
|
59,203
|
|
||
Total current liabilities
|
|
420,132
|
|
|
72,679
|
|
|
82,108
|
|
|
—
|
|
|
(15,560
|
)
|
|
559,359
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Deferred income taxes
|
|
277,599
|
|
|
54,505
|
|
|
56,771
|
|
|
—
|
|
|
—
|
|
|
388,875
|
|
||
Regulatory liabilities
|
|
627,369
|
|
|
173,305
|
|
|
94,755
|
|
|
—
|
|
|
—
|
|
|
895,429
|
|
||
Unamortized tax credits
|
|
60,893
|
|
|
16,463
|
|
|
15,442
|
|
|
—
|
|
|
—
|
|
|
92,798
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
330,356
|
|
|
64,175
|
|
|
63,422
|
|
|
—
|
|
|
—
|
|
|
457,953
|
|
||
Other
|
|
65,612
|
|
|
21,008
|
|
|
17,589
|
|
|
—
|
|
|
—
|
|
|
104,209
|
|
||
Total deferred credits and other liabilities
|
|
1,361,829
|
|
|
329,456
|
|
|
247,979
|
|
|
—
|
|
|
—
|
|
|
1,939,264
|
|
||
Total capitalization and liabilities
|
|
$
|
4,656,493
|
|
|
915,699
|
|
|
808,745
|
|
|
101
|
|
|
(577,324
|
)
|
|
$
|
5,803,714
|
|
(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
|
|
58,644
|
|
|
9,864
|
|
|
8,541
|
|
|
—
|
|
|
(18,405
|
)
|
|
58,644
|
|
||
Other comprehensive income, net of taxes
|
|
57
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
57
|
|
||
Common stock dividends
|
|
(51,652
|
)
|
|
(7,644
|
)
|
|
(6,010
|
)
|
|
—
|
|
|
13,654
|
|
|
(51,652
|
)
|
||
Common stock issuance expenses
|
|
(8
|
)
|
|
(3
|
)
|
|
2
|
|
|
—
|
|
|
1
|
|
|
(8
|
)
|
||
Balance, June 30, 2018
|
|
$
|
1,852,324
|
|
|
288,865
|
|
|
272,798
|
|
|
101
|
|
|
(561,764
|
)
|
|
$
|
1,852,324
|
|
(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
|
|
47,109
|
|
|
8,216
|
|
|
8,323
|
|
|
—
|
|
|
(16,539
|
)
|
|
47,109
|
|
||
Other comprehensive income, net of taxes
|
|
499
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
499
|
|
||
Common stock dividends
|
|
(43,884
|
)
|
|
(7,748
|
)
|
|
(5,973
|
)
|
|
—
|
|
|
13,721
|
|
|
(43,884
|
)
|
||
Common stock issuance expenses
|
|
(5
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
(5
|
)
|
||
Balance, June 30, 2017
|
|
$
|
1,803,506
|
|
|
291,760
|
|
|
261,903
|
|
|
101
|
|
|
(553,764
|
)
|
|
$
|
1,803,506
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income
|
|
$
|
59,184
|
|
|
10,131
|
|
|
8,732
|
|
|
—
|
|
|
(18,405
|
)
|
|
$
|
59,642
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Equity in earnings of subsidiaries
|
|
(18,455
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,405
|
|
|
(50
|
)
|
||
Common stock dividends received from subsidiaries
|
|
13,679
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,654
|
)
|
|
25
|
|
||
Depreciation of property, plant and equipment
|
|
68,830
|
|
|
20,093
|
|
|
11,904
|
|
|
—
|
|
|
—
|
|
|
100,827
|
|
||
Other amortization
|
|
9,200
|
|
|
2,976
|
|
|
845
|
|
|
—
|
|
|
—
|
|
|
13,021
|
|
||
Deferred income taxes
|
|
(6,708
|
)
|
|
(2,429
|
)
|
|
794
|
|
|
—
|
|
|
—
|
|
|
(8,343
|
)
|
||
Allowance for equity funds used during construction
|
|
(5,475
|
)
|
|
(235
|
)
|
|
(567
|
)
|
|
—
|
|
|
—
|
|
|
(6,277
|
)
|
||
Other
|
|
1,469
|
|
|
(322
|
)
|
|
(169
|
)
|
|
—
|
|
|
—
|
|
|
978
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Increase in accounts receivable
|
|
(25,673
|
)
|
|
(2,387
|
)
|
|
(5,763
|
)
|
|
—
|
|
|
(245
|
)
|
|
(34,068
|
)
|
||
Decrease (increase) in accrued unbilled revenues
|
|
(3,063
|
)
|
|
697
|
|
|
(1,419
|
)
|
|
—
|
|
|
—
|
|
|
(3,785
|
)
|
||
Increase in fuel oil stock
|
|
(9,513
|
)
|
|
(3,934
|
)
|
|
(6,696
|
)
|
|
—
|
|
|
—
|
|
|
(20,143
|
)
|
||
Increase in materials and supplies
|
|
(2,752
|
)
|
|
(559
|
)
|
|
(233
|
)
|
|
—
|
|
|
—
|
|
|
(3,544
|
)
|
||
Increase in regulatory assets
|
|
(14,728
|
)
|
|
(1,974
|
)
|
|
(2,898
|
)
|
|
—
|
|
|
—
|
|
|
(19,600
|
)
|
||
Increase in accounts payable
|
|
13,093
|
|
|
3,096
|
|
|
2,095
|
|
|
—
|
|
|
—
|
|
|
18,284
|
|
||
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
|
(15,343
|
)
|
|
(9,952
|
)
|
|
(5,165
|
)
|
|
—
|
|
|
(601
|
)
|
|
(31,061
|
)
|
||
Decrease in defined benefit pension and other postretirement benefit plans liability
|
|
(1,117
|
)
|
|
(380
|
)
|
|
(464
|
)
|
|
—
|
|
|
—
|
|
|
(1,961
|
)
|
||
Change in other assets and liabilities
|
|
1,116
|
|
|
3,173
|
|
|
1,357
|
|
|
—
|
|
|
245
|
|
|
5,891
|
|
||
Net cash provided by operating activities
|
|
63,744
|
|
|
17,994
|
|
|
2,353
|
|
|
—
|
|
|
(14,255
|
)
|
|
69,836
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(156,600
|
)
|
|
(26,667
|
)
|
|
(29,953
|
)
|
|
—
|
|
|
—
|
|
|
(213,220
|
)
|
||
Contributions in aid of construction
|
|
9,680
|
|
|
2,243
|
|
|
1,650
|
|
|
—
|
|
|
—
|
|
|
13,573
|
|
||
Other
|
|
2,241
|
|
|
884
|
|
|
575
|
|
|
—
|
|
|
601
|
|
|
4,301
|
|
||
Advances (to) from affiliates
|
|
(5,600
|
)
|
|
(1,000
|
)
|
|
12,000
|
|
|
—
|
|
|
(5,400
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
|
(150,279
|
)
|
|
(24,540
|
)
|
|
(15,728
|
)
|
|
—
|
|
|
(4,799
|
)
|
|
(195,346
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock dividends
|
|
(51,652
|
)
|
|
(7,644
|
)
|
|
(6,010
|
)
|
|
—
|
|
|
13,654
|
|
|
(51,652
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(540
|
)
|
|
(267
|
)
|
|
(191
|
)
|
|
—
|
|
|
—
|
|
|
(998
|
)
|
||
Proceeds from issuance of long-term debt
|
|
75,000
|
|
|
15,000
|
|
|
10,000
|
|
|
—
|
|
|
—
|
|
|
100,000
|
|
||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
75,881
|
|
|
—
|
|
|
5,600
|
|
|
—
|
|
|
5,400
|
|
|
86,881
|
|
||
Other
|
|
(291
|
)
|
|
(52
|
)
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
(378
|
)
|
||
Net cash provided by financing activities
|
|
98,398
|
|
|
7,037
|
|
|
9,364
|
|
|
—
|
|
|
19,054
|
|
|
133,853
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
11,863
|
|
|
491
|
|
|
(4,011
|
)
|
|
—
|
|
|
—
|
|
|
8,343
|
|
||
Cash and cash equivalents, beginning of period
|
|
2,059
|
|
|
4,025
|
|
|
6,332
|
|
|
101
|
|
|
—
|
|
|
12,517
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
13,922
|
|
|
4,516
|
|
|
2,321
|
|
|
101
|
|
|
—
|
|
|
$
|
20,860
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries |
|
Consolidating
adjustments |
|
Hawaiian Electric
Consolidated |
||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income
|
|
$
|
47,649
|
|
|
8,483
|
|
|
8,514
|
|
|
—
|
|
|
(16,539
|
)
|
|
$
|
48,107
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Equity in earnings of subsidiaries
|
|
(16,589
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,539
|
|
|
(50
|
)
|
||
Common stock dividends received from subsidiaries
|
|
13,771
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,721
|
)
|
|
50
|
|
||
Depreciation of property, plant and equipment
|
|
65,445
|
|
|
19,371
|
|
|
11,556
|
|
|
—
|
|
|
—
|
|
|
96,372
|
|
||
Other amortization
|
|
1,875
|
|
|
905
|
|
|
1,482
|
|
|
—
|
|
|
—
|
|
|
4,262
|
|
||
Deferred income taxes
|
|
15,060
|
|
|
3,590
|
|
|
4,988
|
|
|
—
|
|
|
(39
|
)
|
|
23,599
|
|
||
Allowance for equity funds used during construction
|
|
(4,715
|
)
|
|
(249
|
)
|
|
(462
|
)
|
|
—
|
|
|
—
|
|
|
(5,426
|
)
|
||
Other
|
|
1,089
|
|
|
699
|
|
|
(173
|
)
|
|
—
|
|
|
—
|
|
|
1,615
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Decrease (increase) in accounts receivable
|
|
(5,100
|
)
|
|
1,182
|
|
|
(1,067
|
)
|
|
—
|
|
|
3,256
|
|
|
(1,729
|
)
|
||
Increase in accrued unbilled revenues
|
|
(8,819
|
)
|
|
(602
|
)
|
|
(2,482
|
)
|
|
—
|
|
|
—
|
|
|
(11,903
|
)
|
||
Decrease (increase) in fuel oil stock
|
|
(4,250
|
)
|
|
94
|
|
|
(1,806
|
)
|
|
—
|
|
|
—
|
|
|
(5,962
|
)
|
||
Increase in materials and supplies
|
|
(788
|
)
|
|
(1,472
|
)
|
|
(1,160
|
)
|
|
—
|
|
|
—
|
|
|
(3,420
|
)
|
||
Decrease (increase) in regulatory assets
|
|
11,378
|
|
|
(1,575
|
)
|
|
(1,624
|
)
|
|
—
|
|
|
—
|
|
|
8,179
|
|
||
Increase in accounts payable
|
|
33,121
|
|
|
970
|
|
|
5,625
|
|
|
—
|
|
|
—
|
|
|
39,716
|
|
||
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
|
(29,430
|
)
|
|
(6,290
|
)
|
|
(4,725
|
)
|
|
—
|
|
|
(465
|
)
|
|
(40,910
|
)
|
||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability
|
|
355
|
|
|
26
|
|
|
(79
|
)
|
|
—
|
|
|
—
|
|
|
302
|
|
||
Change in other assets and liabilities
|
|
(12,727
|
)
|
|
129
|
|
|
1,807
|
|
|
—
|
|
|
(3,256
|
)
|
|
(14,047
|
)
|
||
Net cash provided by operating activities
|
|
107,325
|
|
|
25,261
|
|
|
20,394
|
|
|
—
|
|
|
(14,225
|
)
|
|
138,755
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(146,721
|
)
|
|
(22,423
|
)
|
|
(21,015
|
)
|
|
—
|
|
|
—
|
|
|
(190,159
|
)
|
||
Contributions in aid of construction
|
|
14,078
|
|
|
1,870
|
|
|
1,623
|
|
|
—
|
|
|
—
|
|
|
17,571
|
|
||
Other
|
|
4,820
|
|
|
619
|
|
|
307
|
|
|
—
|
|
|
504
|
|
|
6,250
|
|
||
Advances (to) from affiliates
|
|
—
|
|
|
(600
|
)
|
|
9,000
|
|
|
—
|
|
|
(8,400
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
|
(127,823
|
)
|
|
(20,534
|
)
|
|
(10,085
|
)
|
|
—
|
|
|
(7,896
|
)
|
|
(166,338
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common stock dividends
|
|
(43,884
|
)
|
|
(7,748
|
)
|
|
(5,973
|
)
|
|
—
|
|
|
13,721
|
|
|
(43,884
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(540
|
)
|
|
(267
|
)
|
|
(191
|
)
|
|
—
|
|
|
—
|
|
|
(998
|
)
|
||
Proceeds from issuance of special purpose revenue bonds
|
|
162,000
|
|
|
28,000
|
|
|
75,000
|
|
|
—
|
|
|
—
|
|
|
265,000
|
|
||
Funds transferred for redemption of special purpose revenue bonds
|
|
(162,000
|
)
|
|
(28,000
|
)
|
|
(75,000
|
)
|
|
—
|
|
|
—
|
|
|
(265,000
|
)
|
||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
35,590
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,400
|
|
|
43,990
|
|
||
Other
|
|
(2,068
|
)
|
|
(357
|
)
|
|
(804
|
)
|
|
—
|
|
|
—
|
|
|
(3,229
|
)
|
||
Net cash used in financing activities
|
|
(10,902
|
)
|
|
(8,372
|
)
|
|
(6,968
|
)
|
|
—
|
|
|
22,121
|
|
|
(4,121
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(31,400
|
)
|
|
(3,645
|
)
|
|
3,341
|
|
|
—
|
|
|
—
|
|
|
(31,704
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
61,388
|
|
|
10,749
|
|
|
2,048
|
|
|
101
|
|
|
—
|
|
|
74,286
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
29,988
|
|
|
7,104
|
|
|
5,389
|
|
|
101
|
|
|
—
|
|
|
$
|
42,582
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
(in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Interest and dividend income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and fees on loans
|
|
$
|
54,633
|
|
|
$
|
52,317
|
|
|
$
|
107,433
|
|
|
$
|
103,059
|
|
Interest and dividends on investment securities
|
|
8,628
|
|
|
6,763
|
|
|
17,830
|
|
|
13,743
|
|
||||
Total interest and dividend income
|
|
63,261
|
|
|
59,080
|
|
|
125,263
|
|
|
116,802
|
|
||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest on deposit liabilities
|
|
3,284
|
|
|
2,311
|
|
|
6,241
|
|
|
4,414
|
|
||||
Interest on other borrowings
|
|
393
|
|
|
824
|
|
|
889
|
|
|
1,640
|
|
||||
Total interest expense
|
|
3,677
|
|
|
3,135
|
|
|
7,130
|
|
|
6,054
|
|
||||
Net interest income
|
|
59,584
|
|
|
55,945
|
|
|
118,133
|
|
|
110,748
|
|
||||
Provision for loan losses
|
|
2,763
|
|
|
2,834
|
|
|
6,304
|
|
|
6,741
|
|
||||
Net interest income after provision for loan losses
|
|
56,821
|
|
|
53,111
|
|
|
111,829
|
|
|
104,007
|
|
||||
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fees from other financial services
|
|
4,744
|
|
|
5,810
|
|
|
9,398
|
|
|
11,420
|
|
||||
Fee income on deposit liabilities
|
|
5,138
|
|
|
5,565
|
|
|
10,327
|
|
|
10,993
|
|
||||
Fee income on other financial products
|
|
1,675
|
|
|
1,971
|
|
|
3,329
|
|
|
3,837
|
|
||||
Bank-owned life insurance
|
|
1,133
|
|
|
1,925
|
|
|
2,004
|
|
|
2,908
|
|
||||
Mortgage banking income
|
|
617
|
|
|
587
|
|
|
1,230
|
|
|
1,376
|
|
||||
Other income, net
|
|
536
|
|
|
391
|
|
|
972
|
|
|
849
|
|
||||
Total noninterest income
|
|
13,843
|
|
|
16,249
|
|
|
27,260
|
|
|
31,383
|
|
||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and employee benefits
|
|
23,655
|
|
|
24,541
|
|
|
48,095
|
|
|
47,583
|
|
||||
Occupancy
|
|
4,194
|
|
|
4,185
|
|
|
8,474
|
|
|
8,339
|
|
||||
Data processing
|
|
3,540
|
|
|
3,207
|
|
|
7,004
|
|
|
6,487
|
|
||||
Services
|
|
3,028
|
|
|
2,766
|
|
|
6,075
|
|
|
5,126
|
|
||||
Equipment
|
|
1,874
|
|
|
1,771
|
|
|
3,602
|
|
|
3,519
|
|
||||
Office supplies, printing and postage
|
|
1,491
|
|
|
1,527
|
|
|
2,998
|
|
|
3,062
|
|
||||
Marketing
|
|
1,085
|
|
|
839
|
|
|
1,730
|
|
|
1,356
|
|
||||
FDIC insurance
|
|
727
|
|
|
822
|
|
|
1,440
|
|
|
1,550
|
|
||||
Other expense
|
|
4,556
|
|
|
4,906
|
|
|
8,657
|
|
|
9,412
|
|
||||
Total noninterest expense
|
|
44,150
|
|
|
44,564
|
|
|
88,075
|
|
|
86,434
|
|
||||
Income before income taxes
|
|
26,514
|
|
|
24,796
|
|
|
51,014
|
|
|
48,956
|
|
||||
Income taxes
|
|
5,953
|
|
|
8,063
|
|
|
11,493
|
|
|
16,410
|
|
||||
Net income
|
|
$
|
20,561
|
|
|
$
|
16,733
|
|
|
$
|
39,521
|
|
|
$
|
32,546
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
(in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Interest and dividend income
|
|
63,261
|
|
|
59,080
|
|
|
$
|
125,263
|
|
|
$
|
116,802
|
|
||
Noninterest income
|
|
13,843
|
|
|
16,249
|
|
|
27,260
|
|
|
31,383
|
|
||||
*Revenues-Bank
|
|
77,104
|
|
|
75,329
|
|
|
152,523
|
|
|
148,185
|
|
||||
Total interest expense
|
|
3,677
|
|
|
3,135
|
|
|
7,130
|
|
|
6,054
|
|
||||
Provision for loan losses
|
|
2,763
|
|
|
2,834
|
|
|
6,304
|
|
|
6,741
|
|
||||
Noninterest expense
|
|
44,150
|
|
|
44,564
|
|
|
88,075
|
|
|
86,434
|
|
||||
Less: Retirement defined benefits expense—other than service costs
|
|
(403
|
)
|
|
(201
|
)
|
|
(790
|
)
|
|
(396
|
)
|
||||
*Expenses-Bank
|
|
50,187
|
|
|
50,332
|
|
|
100,719
|
|
|
98,833
|
|
||||
*Operating income-Bank
|
|
26,917
|
|
|
24,997
|
|
|
51,804
|
|
|
49,352
|
|
||||
Add back: Retirement defined benefits expense—other than service costs
|
|
403
|
|
|
201
|
|
|
790
|
|
|
396
|
|
||||
Income before income taxes
|
|
$
|
26,514
|
|
|
$
|
24,796
|
|
|
$
|
51,014
|
|
|
$
|
48,956
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
(in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
|
$
|
20,561
|
|
|
$
|
16,733
|
|
|
$
|
39,521
|
|
|
$
|
32,546
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized gains (losses) on available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, net of tax benefits (taxes) of $1,592, $(1,334), $6,459 and $(1,482), respectively
|
|
(4,348
|
)
|
|
2,021
|
|
|
(17,645
|
)
|
|
2,244
|
|
||||
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 $133, $133, $827 and $537, respectively
|
|
366
|
|
|
202
|
|
|
1,588
|
|
|
814
|
|
||||
Other comprehensive income (loss), net of taxes
|
|
(3,982
|
)
|
|
2,223
|
|
|
(16,057
|
)
|
|
3,058
|
|
||||
Comprehensive income
|
|
$
|
16,579
|
|
|
$
|
18,956
|
|
|
$
|
23,464
|
|
|
$
|
35,604
|
|
(in thousands)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and due from banks
|
|
|
|
|
$
|
120,189
|
|
|
|
|
|
$
|
140,934
|
|
||
Interest-bearing deposits
|
|
|
|
109,230
|
|
|
|
|
93,165
|
|
||||||
Investment securities
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale, at fair value
|
|
|
|
|
1,409,528
|
|
|
|
|
|
1,401,198
|
|
||||
Held-to-maturity, at amortized cost (fair value of $61,444 and $44,412, respectively)
|
|
|
|
62,630
|
|
|
|
|
44,515
|
|
||||||
Stock in Federal Home Loan Bank, at cost
|
|
|
|
|
10,158
|
|
|
|
|
|
9,706
|
|
||||
Loans held for investment
|
|
|
|
|
4,774,744
|
|
|
|
|
|
4,670,768
|
|
||||
Allowance for loan losses
|
|
|
|
|
(52,803
|
)
|
|
|
|
|
(53,637
|
)
|
||||
Net loans
|
|
|
|
|
4,721,941
|
|
|
|
|
|
4,617,131
|
|
||||
Loans held for sale, at lower of cost or fair value
|
|
|
|
|
5,248
|
|
|
|
|
|
11,250
|
|
||||
Other
|
|
|
|
|
462,469
|
|
|
|
|
|
398,570
|
|
||||
Goodwill
|
|
|
|
|
82,190
|
|
|
|
|
|
82,190
|
|
||||
Total assets
|
|
|
|
|
$
|
6,983,583
|
|
|
|
|
|
$
|
6,798,659
|
|
||
Liabilities and shareholder’s equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposit liabilities—noninterest-bearing
|
|
|
|
|
$
|
1,812,348
|
|
|
|
|
|
$
|
1,760,233
|
|
||
Deposit liabilities—interest-bearing
|
|
|
|
|
4,303,761
|
|
|
|
|
|
4,130,364
|
|
||||
Other borrowings
|
|
|
|
|
126,930
|
|
|
|
|
|
190,859
|
|
||||
Other
|
|
|
|
|
131,063
|
|
|
|
|
|
110,356
|
|
||||
Total liabilities
|
|
|
|
|
6,374,102
|
|
|
|
|
|
6,191,812
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock
|
|
|
|
|
1
|
|
|
|
|
|
1
|
|
||||
Additional paid in capital
|
|
|
|
346,188
|
|
|
|
|
345,018
|
|
||||||
Retained earnings
|
|
|
|
|
310,298
|
|
|
|
|
|
292,957
|
|
||||
Accumulated other comprehensive loss, net of tax benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized losses on securities
|
|
$
|
(32,596
|
)
|
|
|
|
|
$
|
(14,951
|
)
|
|
|
|
||
Retirement benefit plans
|
|
(14,410
|
)
|
|
(47,006
|
)
|
|
(16,178
|
)
|
|
(31,129
|
)
|
||||
Total shareholder’s equity
|
|
|
|
|
609,481
|
|
|
|
|
|
606,847
|
|
||||
Total liabilities and shareholder’s equity
|
|
|
|
|
$
|
6,983,583
|
|
|
|
|
|
$
|
6,798,659
|
|
||
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bank-owned life insurance
|
|
|
|
|
$
|
150,797
|
|
|
|
|
|
$
|
148,775
|
|
||
Premises and equipment, net
|
|
|
|
|
186,620
|
|
|
|
|
|
136,270
|
|
||||
Prepaid expenses
|
|
|
|
|
4,993
|
|
|
|
|
|
3,961
|
|
||||
Accrued interest receivable
|
|
|
|
|
19,597
|
|
|
|
|
|
18,724
|
|
||||
Mortgage-servicing rights
|
|
|
|
|
8,509
|
|
|
|
|
|
8,639
|
|
||||
Low-income housing equity investments
|
|
|
|
63,033
|
|
|
|
|
59,016
|
|
||||||
Real estate acquired in settlement of loans, net
|
|
|
|
|
—
|
|
|
|
|
|
133
|
|
||||
Other
|
|
|
|
|
28,920
|
|
|
|
|
|
23,052
|
|
||||
|
|
|
|
|
$
|
462,469
|
|
|
|
|
|
$
|
398,570
|
|
||
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued expenses
|
|
|
|
|
$
|
63,734
|
|
|
|
|
|
$
|
39,312
|
|
||
Federal and state income taxes payable
|
|
|
|
|
1,200
|
|
|
|
|
|
3,736
|
|
||||
Cashier’s checks
|
|
|
|
|
28,236
|
|
|
|
|
|
27,000
|
|
||||
Advance payments by borrowers
|
|
|
|
|
10,415
|
|
|
|
|
|
10,245
|
|
||||
Other
|
|
|
|
|
27,478
|
|
|
|
|
|
30,063
|
|
||||
|
|
|
|
|
$
|
131,063
|
|
|
|
|
|
$
|
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
|
||||||||||||||||||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury and federal agency obligations
|
|
$
|
179,986
|
|
|
$
|
72
|
|
|
$
|
(4,125
|
)
|
|
$
|
175,933
|
|
|
19
|
|
|
$
|
98,578
|
|
|
$
|
(2,018
|
)
|
|
9
|
|
|
$
|
67,283
|
|
|
$
|
(2,107
|
)
|
Mortgage-related securities- FNMA, FHLMC and GNMA
|
|
1,218,313
|
|
|
350
|
|
|
(40,831
|
)
|
|
1,177,832
|
|
|
81
|
|
|
694,629
|
|
|
(19,345
|
)
|
|
83
|
|
|
456,218
|
|
|
(21,486
|
)
|
||||||||
Corporate bonds
|
|
40,331
|
|
|
23
|
|
|
(18
|
)
|
|
40,336
|
|
|
4
|
|
|
23,841
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Mortgage revenue bond
|
|
15,427
|
|
|
—
|
|
|
—
|
|
|
15,427
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
|
$
|
1,454,057
|
|
|
$
|
445
|
|
|
$
|
(44,974
|
)
|
|
$
|
1,409,528
|
|
|
104
|
|
|
$
|
817,048
|
|
|
$
|
(21,381
|
)
|
|
92
|
|
|
$
|
523,501
|
|
|
$
|
(23,593
|
)
|
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA
|
|
$
|
62,630
|
|
|
$
|
41
|
|
|
$
|
(1,227
|
)
|
|
$
|
61,444
|
|
|
3
|
|
|
$
|
41,138
|
|
|
$
|
(1,227
|
)
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
62,630
|
|
|
$
|
41
|
|
|
$
|
(1,227
|
)
|
|
$
|
61,444
|
|
|
3
|
|
|
$
|
41,138
|
|
|
$
|
(1,227
|
)
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
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
|
)
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
June 30, 2018
|
|
Amortized cost
|
|
Fair value
|
||||
(in thousands)
|
|
|
|
|
||||
Available-for-sale
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
25,005
|
|
|
$
|
24,860
|
|
Due after one year through five years
|
|
105,425
|
|
|
104,020
|
|
||
Due after five years through ten years
|
|
77,526
|
|
|
75,563
|
|
||
Due after ten years
|
|
27,788
|
|
|
27,253
|
|
||
|
|
235,744
|
|
|
231,696
|
|
||
Mortgage-related securities-FNMA, FHLMC and GNMA
|
|
1,218,313
|
|
|
1,177,832
|
|
||
Total available-for-sale securities
|
|
$
|
1,454,057
|
|
|
$
|
1,409,528
|
|
Held-to-maturity
|
|
|
|
|
||||
Mortgage-related securities-FNMA, FHLMC and GNMA
|
|
$
|
62,630
|
|
|
$
|
61,444
|
|
Total held-to-maturity securities
|
|
$
|
62,630
|
|
|
$
|
61,444
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
(in thousands)
|
|
|
|
|
|
||
Real estate:
|
|
|
|
|
|
||
Residential 1-4 family
|
$
|
2,099,950
|
|
|
$
|
2,118,047
|
|
Commercial real estate
|
758,835
|
|
|
733,106
|
|
||
Home equity line of credit
|
938,902
|
|
|
913,052
|
|
||
Residential land
|
16,032
|
|
|
15,797
|
|
||
Commercial construction
|
124,421
|
|
|
108,273
|
|
||
Residential construction
|
14,873
|
|
|
14,910
|
|
||
Total real estate
|
3,953,013
|
|
|
3,903,185
|
|
||
Commercial
|
593,596
|
|
|
544,828
|
|
||
Consumer
|
228,804
|
|
|
223,564
|
|
||
Total loans
|
4,775,413
|
|
|
4,671,577
|
|
||
Less: Deferred fees and discounts
|
(669
|
)
|
|
(809
|
)
|
||
Allowance for loan losses
|
(52,803
|
)
|
|
(53,637
|
)
|
||
Total loans, net
|
$
|
4,721,941
|
|
|
$
|
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 June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
$
|
2,525
|
|
|
$
|
15,959
|
|
|
$
|
7,982
|
|
|
$
|
674
|
|
|
$
|
4,361
|
|
|
$
|
4
|
|
|
$
|
10,355
|
|
|
$
|
12,035
|
|
|
$
|
—
|
|
|
$
|
53,895
|
|
Charge-offs
|
|
—
|
|
|
—
|
|
|
(144
|
)
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(540
|
)
|
|
(3,888
|
)
|
|
—
|
|
|
(4,581
|
)
|
||||||||||
Recoveries
|
|
14
|
|
|
—
|
|
|
13
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
280
|
|
|
373
|
|
|
—
|
|
|
726
|
|
||||||||||
Provision
|
|
400
|
|
|
(661
|
)
|
|
(517
|
)
|
|
(69
|
)
|
|
255
|
|
|
—
|
|
|
66
|
|
|
3,289
|
|
|
—
|
|
|
2,763
|
|
||||||||||
Ending balance
|
|
$
|
2,939
|
|
|
$
|
15,298
|
|
|
$
|
7,334
|
|
|
$
|
642
|
|
|
$
|
4,616
|
|
|
$
|
4
|
|
|
$
|
10,161
|
|
|
$
|
11,809
|
|
|
$
|
—
|
|
|
$
|
52,803
|
|
Three months ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
$
|
2,781
|
|
|
$
|
16,504
|
|
|
$
|
5,417
|
|
|
$
|
1,479
|
|
|
$
|
7,257
|
|
|
$
|
11
|
|
|
$
|
14,902
|
|
|
$
|
7,646
|
|
|
$
|
—
|
|
|
$
|
55,997
|
|
Charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(92
|
)
|
|
—
|
|
|
—
|
|
|
(752
|
)
|
|
(2,390
|
)
|
|
—
|
|
|
(3,234
|
)
|
||||||||||
Recoveries
|
|
49
|
|
|
—
|
|
|
39
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
299
|
|
|
357
|
|
|
—
|
|
|
759
|
|
||||||||||
Provision
|
|
300
|
|
|
2,336
|
|
|
71
|
|
|
(138
|
)
|
|
(2,551
|
)
|
|
(2
|
)
|
|
103
|
|
|
2,715
|
|
|
—
|
|
|
2,834
|
|
||||||||||
Ending balance
|
|
$
|
3,130
|
|
|
$
|
18,840
|
|
|
$
|
5,527
|
|
|
$
|
1,264
|
|
|
$
|
4,706
|
|
|
$
|
9
|
|
|
$
|
14,552
|
|
|
$
|
8,328
|
|
|
$
|
—
|
|
|
$
|
56,356
|
|
Six months ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
$
|
2,902
|
|
|
$
|
15,796
|
|
|
$
|
7,522
|
|
|
$
|
896
|
|
|
$
|
4,671
|
|
|
$
|
12
|
|
|
$
|
10,851
|
|
|
$
|
10,987
|
|
|
$
|
—
|
|
|
$
|
53,637
|
|
Charge-offs
|
|
(31
|
)
|
|
—
|
|
|
(144
|
)
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
(1,142
|
)
|
|
(8,120
|
)
|
|
—
|
|
|
(9,454
|
)
|
||||||||||
Recoveries
|
|
68
|
|
|
—
|
|
|
27
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
1,450
|
|
|
720
|
|
|
—
|
|
|
2,316
|
|
||||||||||
Provision
|
|
—
|
|
|
(498
|
)
|
|
(71
|
)
|
|
(288
|
)
|
|
(55
|
)
|
|
(8
|
)
|
|
(998
|
)
|
|
8,222
|
|
|
—
|
|
|
6,304
|
|
||||||||||
Ending balance
|
|
$
|
2,939
|
|
|
$
|
15,298
|
|
|
$
|
7,334
|
|
|
$
|
642
|
|
|
$
|
4,616
|
|
|
$
|
4
|
|
|
$
|
10,161
|
|
|
$
|
11,809
|
|
|
$
|
—
|
|
|
$
|
52,803
|
|
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
|
$
|
1,027
|
|
|
$
|
53
|
|
|
$
|
1,161
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
597
|
|
|
$
|
3
|
|
|
|
|
$
|
2,848
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
1,912
|
|
|
$
|
15,245
|
|
|
$
|
6,173
|
|
|
$
|
635
|
|
|
$
|
4,616
|
|
|
$
|
4
|
|
|
$
|
9,564
|
|
|
$
|
11,806
|
|
|
$
|
—
|
|
|
$
|
49,955
|
|
Financing Receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance
|
|
$
|
2,099,950
|
|
|
$
|
758,835
|
|
|
$
|
938,902
|
|
|
$
|
16,032
|
|
|
$
|
124,421
|
|
|
$
|
14,873
|
|
|
$
|
593,596
|
|
|
$
|
228,804
|
|
|
|
|
$
|
4,775,413
|
|
||
Ending balance: individually evaluated for impairment
|
|
$
|
17,605
|
|
|
$
|
993
|
|
|
$
|
13,849
|
|
|
$
|
1,171
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,874
|
|
|
$
|
91
|
|
|
|
|
$
|
39,583
|
|
||
Ending balance: collectively evaluated for impairment
|
|
$
|
2,082,345
|
|
|
$
|
757,842
|
|
|
$
|
925,053
|
|
|
$
|
14,861
|
|
|
$
|
124,421
|
|
|
$
|
14,873
|
|
|
$
|
587,722
|
|
|
$
|
228,713
|
|
|
|
|
$
|
4,735,830
|
|
||
Six months ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
$
|
2,873
|
|
|
$
|
16,004
|
|
|
$
|
5,039
|
|
|
$
|
1,738
|
|
|
$
|
6,449
|
|
|
$
|
12
|
|
|
$
|
16,618
|
|
|
$
|
6,800
|
|
|
$
|
—
|
|
|
$
|
55,533
|
|
Charge-offs
|
|
(6
|
)
|
|
—
|
|
|
(14
|
)
|
|
(92
|
)
|
|
—
|
|
|
—
|
|
|
(2,262
|
)
|
|
(5,200
|
)
|
|
—
|
|
|
(7,574
|
)
|
||||||||||
Recoveries
|
|
58
|
|
|
—
|
|
|
130
|
|
|
218
|
|
|
—
|
|
|
—
|
|
|
596
|
|
|
654
|
|
|
—
|
|
|
1,656
|
|
||||||||||
Provision
|
|
205
|
|
|
2,836
|
|
|
372
|
|
|
(600
|
)
|
|
(1,743
|
)
|
|
(3
|
)
|
|
(400
|
)
|
|
6,074
|
|
|
—
|
|
|
6,741
|
|
||||||||||
Ending balance
|
|
$
|
3,130
|
|
|
$
|
18,840
|
|
|
$
|
5,527
|
|
|
$
|
1,264
|
|
|
$
|
4,706
|
|
|
$
|
9
|
|
|
$
|
14,552
|
|
|
$
|
8,328
|
|
|
$
|
—
|
|
|
$
|
56,356
|
|
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
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
(in thousands)
|
|
Commercial
real estate
|
|
Commercial
construction
|
|
Commercial
|
|
Commercial
real estate
|
|
Commercial
construction
|
|
Commercial
|
||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pass
|
|
$
|
671,592
|
|
|
$
|
99,632
|
|
|
$
|
539,168
|
|
|
$
|
630,877
|
|
|
$
|
83,757
|
|
|
$
|
492,942
|
|
Special mention
|
|
38,424
|
|
|
22,500
|
|
|
32,711
|
|
|
49,347
|
|
|
22,500
|
|
|
27,997
|
|
||||||
Substandard
|
|
48,819
|
|
|
2,289
|
|
|
21,717
|
|
|
52,882
|
|
|
2,016
|
|
|
23,421
|
|
||||||
Doubtful
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
468
|
|
||||||
Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
758,835
|
|
|
$
|
124,421
|
|
|
$
|
593,596
|
|
|
$
|
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
|
||||||||||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
2,975
|
|
|
$
|
1,348
|
|
|
$
|
4,360
|
|
|
$
|
8,683
|
|
|
$
|
2,091,267
|
|
|
$
|
2,099,950
|
|
|
$
|
—
|
|
Commercial real estate
|
|
—
|
|
|
725
|
|
|
—
|
|
|
725
|
|
|
758,110
|
|
|
758,835
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
2,075
|
|
|
288
|
|
|
2,545
|
|
|
4,908
|
|
|
933,994
|
|
|
938,902
|
|
|
—
|
|
|||||||
Residential land
|
|
741
|
|
|
111
|
|
|
631
|
|
|
1,483
|
|
|
14,549
|
|
|
16,032
|
|
|
—
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
124,421
|
|
|
124,421
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,873
|
|
|
14,873
|
|
|
—
|
|
|||||||
Commercial
|
|
1,721
|
|
|
491
|
|
|
551
|
|
|
2,763
|
|
|
590,833
|
|
|
593,596
|
|
|
—
|
|
|||||||
Consumer
|
|
3,421
|
|
|
2,019
|
|
|
1,579
|
|
|
7,019
|
|
|
221,785
|
|
|
228,804
|
|
|
—
|
|
|||||||
Total loans
|
|
$
|
10,933
|
|
|
$
|
4,982
|
|
|
$
|
9,666
|
|
|
$
|
25,581
|
|
|
$
|
4,749,832
|
|
|
$
|
4,775,413
|
|
|
$
|
—
|
|
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)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Real estate:
|
|
|
|
|
|
|
||
Residential 1-4 family
|
|
$
|
13,121
|
|
|
$
|
12,598
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
||
Home equity line of credit
|
|
6,051
|
|
|
4,466
|
|
||
Residential land
|
|
843
|
|
|
841
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
4,385
|
|
|
3,069
|
|
||
Consumer
|
|
2,820
|
|
|
2,617
|
|
||
Total nonaccrual loans
|
|
$
|
27,220
|
|
|
$
|
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
|
|
$
|
10,777
|
|
|
$
|
10,982
|
|
Commercial real estate
|
|
993
|
|
|
1,016
|
|
||
Home equity line of credit
|
|
10,255
|
|
|
6,584
|
|
||
Residential land
|
|
328
|
|
|
425
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
1,716
|
|
|
1,741
|
|
||
Consumer
|
|
64
|
|
|
66
|
|
||
Total troubled debt restructured loans not included above
|
|
$
|
24,133
|
|
|
$
|
20,814
|
|
|
|
June 30, 2018
|
|
Three months ended June 30, 2018
|
|
Six months ended June 30, 2018
|
||||||||||||||||||||||
(in thousands)
|
|
Recorded
investment
|
|
Unpaid
principal
balance
|
|
Related
Allowance
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
||||||||||||||
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
8,966
|
|
|
$
|
9,498
|
|
|
$
|
—
|
|
|
$
|
8,900
|
|
|
$
|
50
|
|
|
$
|
8,699
|
|
|
$
|
157
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
2,505
|
|
|
2,803
|
|
|
—
|
|
|
2,374
|
|
|
7
|
|
|
2,037
|
|
|
12
|
|
|||||||
Residential land
|
|
1,141
|
|
|
1,449
|
|
|
—
|
|
|
1,132
|
|
|
5
|
|
|
1,150
|
|
|
10
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
4,158
|
|
|
5,079
|
|
|
—
|
|
|
3,026
|
|
|
10
|
|
|
2,691
|
|
|
20
|
|
|||||||
Consumer
|
|
33
|
|
|
33
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|||||||
|
|
$
|
16,803
|
|
|
$
|
18,862
|
|
|
$
|
—
|
|
|
$
|
15,447
|
|
|
$
|
72
|
|
|
$
|
14,588
|
|
|
$
|
199
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
8,639
|
|
|
$
|
8,842
|
|
|
$
|
1,027
|
|
|
$
|
8,778
|
|
|
$
|
97
|
|
|
$
|
8,953
|
|
|
$
|
190
|
|
Commercial real estate
|
|
993
|
|
|
993
|
|
|
53
|
|
|
997
|
|
|
10
|
|
|
1,003
|
|
|
21
|
|
|||||||
Home equity line of credit
|
|
11,344
|
|
|
11,414
|
|
|
1,161
|
|
|
10,420
|
|
|
96
|
|
|
9,080
|
|
|
177
|
|
|||||||
Residential land
|
|
30
|
|
|
30
|
|
|
7
|
|
|
40
|
|
|
1
|
|
|
58
|
|
|
3
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
1,716
|
|
|
1,716
|
|
|
597
|
|
|
1,738
|
|
|
30
|
|
|
1,848
|
|
|
66
|
|
|||||||
Consumer
|
|
58
|
|
|
58
|
|
|
3
|
|
|
58
|
|
|
1
|
|
|
58
|
|
|
2
|
|
|||||||
|
|
$
|
22,780
|
|
|
$
|
23,053
|
|
|
$
|
2,848
|
|
|
$
|
22,031
|
|
|
$
|
235
|
|
|
$
|
21,000
|
|
|
$
|
459
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
17,605
|
|
|
$
|
18,340
|
|
|
$
|
1,027
|
|
|
$
|
17,678
|
|
|
$
|
147
|
|
|
$
|
17,652
|
|
|
$
|
347
|
|
Commercial real estate
|
|
993
|
|
|
993
|
|
|
53
|
|
|
997
|
|
|
10
|
|
|
1,003
|
|
|
21
|
|
|||||||
Home equity line of credit
|
|
13,849
|
|
|
14,217
|
|
|
1,161
|
|
|
12,794
|
|
|
103
|
|
|
11,117
|
|
|
189
|
|
|||||||
Residential land
|
|
1,171
|
|
|
1,479
|
|
|
7
|
|
|
1,172
|
|
|
6
|
|
|
1,208
|
|
|
13
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
5,874
|
|
|
6,795
|
|
|
597
|
|
|
4,764
|
|
|
40
|
|
|
4,539
|
|
|
86
|
|
|||||||
Consumer
|
|
91
|
|
|
91
|
|
|
3
|
|
|
73
|
|
|
1
|
|
|
69
|
|
|
2
|
|
|||||||
|
|
$
|
39,583
|
|
|
$
|
41,915
|
|
|
$
|
2,848
|
|
|
$
|
37,478
|
|
|
$
|
307
|
|
|
$
|
35,588
|
|
|
$
|
658
|
|
|
|
December 31, 2017
|
|
Three months ended June 30, 2017
|
|
Six months ended June 30, 2017
|
||||||||||||||||||||||
(in thousands)
|
|
Recorded
investment
|
|
Unpaid
principal
balance
|
|
Related
allowance
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
||||||||||||||
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
9,097
|
|
|
$
|
9,644
|
|
|
$
|
—
|
|
|
$
|
9,304
|
|
|
$
|
76
|
|
|
$
|
9,429
|
|
|
$
|
160
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
143
|
|
|
11
|
|
|
182
|
|
|
11
|
|
|||||||
Home equity line of credit
|
|
1,496
|
|
|
1,789
|
|
|
—
|
|
|
2,401
|
|
|
51
|
|
|
2,203
|
|
|
65
|
|
|||||||
Residential land
|
|
1,143
|
|
|
1,434
|
|
|
—
|
|
|
1,075
|
|
|
8
|
|
|
1,016
|
|
|
34
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
2,328
|
|
|
3,166
|
|
|
—
|
|
|
1,949
|
|
|
2
|
|
|
3,428
|
|
|
8
|
|
|||||||
Consumer
|
|
8
|
|
|
8
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
$
|
14,072
|
|
|
$
|
16,041
|
|
|
$
|
—
|
|
|
$
|
14,873
|
|
|
$
|
148
|
|
|
$
|
16,258
|
|
|
$
|
278
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
9,187
|
|
|
$
|
9,390
|
|
|
$
|
1,248
|
|
|
$
|
10,054
|
|
|
$
|
117
|
|
|
$
|
10,051
|
|
|
$
|
236
|
|
Commercial real estate
|
|
1,016
|
|
|
1,016
|
|
|
65
|
|
|
1,292
|
|
|
14
|
|
|
1,296
|
|
|
28
|
|
|||||||
Home equity line of credit
|
|
6,692
|
|
|
6,736
|
|
|
647
|
|
|
4,372
|
|
|
47
|
|
|
4,467
|
|
|
96
|
|
|||||||
Residential land
|
|
122
|
|
|
122
|
|
|
47
|
|
|
1,532
|
|
|
24
|
|
|
1,804
|
|
|
61
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
2,246
|
|
|
2,252
|
|
|
694
|
|
|
2,562
|
|
|
68
|
|
|
4,915
|
|
|
469
|
|
|||||||
Consumer
|
|
58
|
|
|
58
|
|
|
29
|
|
|
68
|
|
|
1
|
|
|
49
|
|
|
1
|
|
|||||||
|
|
$
|
19,321
|
|
|
$
|
19,574
|
|
|
$
|
2,730
|
|
|
$
|
19,880
|
|
|
$
|
271
|
|
|
$
|
22,582
|
|
|
$
|
891
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
18,284
|
|
|
$
|
19,034
|
|
|
$
|
1,248
|
|
|
$
|
19,358
|
|
|
$
|
193
|
|
|
$
|
19,480
|
|
|
$
|
396
|
|
Commercial real estate
|
|
1,016
|
|
|
1,016
|
|
|
65
|
|
|
1,435
|
|
|
25
|
|
|
1,478
|
|
|
39
|
|
|||||||
Home equity line of credit
|
|
8,188
|
|
|
8,525
|
|
|
647
|
|
|
6,773
|
|
|
98
|
|
|
6,670
|
|
|
161
|
|
|||||||
Residential land
|
|
1,265
|
|
|
1,556
|
|
|
47
|
|
|
2,607
|
|
|
32
|
|
|
2,820
|
|
|
95
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial
|
|
4,574
|
|
|
5,418
|
|
|
694
|
|
|
4,511
|
|
|
70
|
|
|
8,343
|
|
|
477
|
|
|||||||
Consumer
|
|
66
|
|
|
66
|
|
|
29
|
|
|
69
|
|
|
1
|
|
|
49
|
|
|
1
|
|
|||||||
|
|
$
|
33,393
|
|
|
$
|
35,615
|
|
|
$
|
2,730
|
|
|
$
|
34,753
|
|
|
$
|
419
|
|
|
$
|
38,840
|
|
|
$
|
1,169
|
|
*
|
Since loan was classified as impaired.
|
|
|
Three months ended June 30, 2018
|
|
Six months ended June 30, 2018
|
||||||||||||||||||||||||||
|
|
Number of contracts
|
|
Outstanding recorded
investment
1
|
|
Net increase in allowance
|
|
Number of contracts
|
|
Outstanding recorded
investment
1
|
|
Net increase in allowance
|
||||||||||||||||||
(dollars in thousands)
|
|
|
Pre-modification
|
|
Post-modification
|
|
(as of period end)
|
|
|
Pre-modification
|
|
Post-modification
|
|
(as of period end)
|
||||||||||||||||
Troubled debt restructurings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Residential 1-4 family
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
339
|
|
|
$
|
344
|
|
|
$
|
16
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Home equity line of credit
|
|
21
|
|
|
3,338
|
|
|
3,338
|
|
|
554
|
|
|
39
|
|
|
5,508
|
|
|
5,512
|
|
|
942
|
|
||||||
Residential land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
109
|
|
|
109
|
|
|
—
|
|
||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial
|
|
2
|
|
|
43
|
|
|
43
|
|
|
42
|
|
|
7
|
|
|
2,294
|
|
|
2,294
|
|
|
42
|
|
||||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
23
|
|
|
$
|
3,381
|
|
|
$
|
3,381
|
|
|
$
|
596
|
|
|
48
|
|
|
$
|
8,250
|
|
|
$
|
8,259
|
|
|
$
|
1,000
|
|
|
|
Three months ended June 30, 2017
|
|
Six months ended June 30, 2017
|
||||||||||||||||||||||||||
|
|
Number of contracts
|
|
Outstanding recorded
investment 1 |
|
Net increase in allowance
|
|
Number of contracts
|
|
Outstanding recorded
investment 1 |
|
Net increase in allowance
|
||||||||||||||||||
(dollars in thousands)
|
|
|
Pre-modification
|
|
Post-modification
|
|
(as of period end)
|
|
|
Pre-modification
|
|
Post-modification
|
|
(as of period end)
|
||||||||||||||||
Troubled debt restructurings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential 1-4 family
|
|
2
|
|
|
$
|
360
|
|
|
$
|
360
|
|
|
$
|
—
|
|
|
5
|
|
|
$
|
872
|
|
|
$
|
880
|
|
|
$
|
45
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Home equity line of credit
|
|
5
|
|
|
298
|
|
|
298
|
|
|
59
|
|
|
13
|
|
|
524
|
|
|
510
|
|
|
93
|
|
||||||
Residential land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
342
|
|
|
342
|
|
|
—
|
|
||||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
59
|
|
|
59
|
|
|
27
|
|
||||||
|
|
7
|
|
|
$
|
658
|
|
|
$
|
658
|
|
|
$
|
59
|
|
|
20
|
|
|
$
|
1,797
|
|
|
$
|
1,791
|
|
|
$
|
165
|
|
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 June 30, 2018
|
|
Six months ended June 30, 2018
|
||||||||
(dollars in thousands)
|
|
Number of contracts
|
|
Recorded investment
|
|
Number of contracts
|
|
Recorded investment
|
||||
Troubled debt restructurings that
subsequently defaulted
|
|
|
|
|
|
|
|
|
||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|||
Residential 1-4 family
|
|
—
|
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
Commercial real estate
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Home equity line of credit
|
|
1
|
|
100
|
|
|
2
|
|
181
|
|
||
Residential land
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Commercial construction
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Residential construction
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Commercial
|
|
1
|
|
291
|
|
|
1
|
|
291
|
|
||
Consumer
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
|
|
2
|
|
$
|
391
|
|
|
3
|
|
$
|
472
|
|
|
|
Three months ended June 30, 2017
|
|
Six months ended June 30, 2017
|
||||||||
(dollars in thousands)
|
|
Number of contracts
|
|
Recorded investment
|
|
Number of contracts
|
|
Recorded investment
|
||||
Troubled debt restructurings that
subsequently defaulted
|
|
|
|
|
|
|
|
|
||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|||
Residential 1-4 family
|
|
1
|
|
$
|
222
|
|
|
2
|
|
$
|
523
|
|
Commercial real estate
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Home equity line of credit
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Residential land
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Commercial construction
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Residential construction
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Commercial
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Consumer
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
|
|
1
|
|
$
|
222
|
|
|
2
|
|
$
|
523
|
|
(in thousands)
|
|
Gross
carrying amount 1 |
|
Accumulated amortization
1
|
|
Valuation allowance
|
|
Net
carrying amount |
||||||||
June 30, 2018
|
|
$
|
18,238
|
|
|
$
|
(9,729
|
)
|
|
$
|
—
|
|
|
$
|
8,509
|
|
December 31, 2017
|
|
17,511
|
|
|
(8,872
|
)
|
|
—
|
|
|
8,639
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
(in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Mortgage servicing rights
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
8,541
|
|
|
$
|
9,294
|
|
|
$
|
8,639
|
|
|
$
|
9,373
|
|
Amount capitalized
|
|
392
|
|
|
362
|
|
|
727
|
|
|
798
|
|
||||
Amortization
|
|
(424
|
)
|
|
(475
|
)
|
|
(857
|
)
|
|
(990
|
)
|
||||
Other-than-temporary impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Carrying amount before valuation allowance
|
|
8,509
|
|
|
9,181
|
|
|
8,509
|
|
|
9,181
|
|
||||
Valuation allowance for mortgage servicing rights
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Provision (recovery)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other-than-temporary impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Ending balance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net carrying value of mortgage servicing rights
|
|
$
|
8,509
|
|
|
$
|
9,181
|
|
|
$
|
8,509
|
|
|
$
|
9,181
|
|
(dollars in thousands)
|
|
June 30, 2018
|
|
|
December 31, 2017
|
|
||
Unpaid principal balance
|
|
$
|
1,192,901
|
|
|
$
|
1,195,454
|
|
Weighted average note rate
|
|
3.96
|
%
|
|
3.94
|
%
|
||
Weighted average discount rate
|
|
10.0
|
%
|
|
10.0
|
%
|
||
Weighted average prepayment speed
|
|
6.8
|
%
|
|
9.0
|
%
|
(dollars in thousands)
|
|
June 30, 2018
|
|
|
December 31, 2017
|
|
||
Prepayment rate:
|
|
|
|
|
||||
25 basis points adverse rate change
|
|
$
|
(344
|
)
|
|
$
|
(869
|
)
|
50 basis points adverse rate change
|
|
(797
|
)
|
|
(1,828
|
)
|
||
Discount rate:
|
|
|
|
|
||||
25 basis points adverse rate change
|
|
(135
|
)
|
|
(111
|
)
|
||
50 basis points adverse rate change
|
|
(268
|
)
|
|
(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
|
|
|
|
|
|
|
|
|
|
|||
June 30, 2018
|
|
$
|
77
|
|
|
$
|
—
|
|
|
$
|
77
|
|
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
|
||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|||
Commercial account holders
|
|
$
|
77
|
|
|
$
|
193
|
|
|
$
|
—
|
|
Total
|
|
$
|
77
|
|
|
$
|
193
|
|
|
$
|
—
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|||
Commercial account holders
|
|
$
|
141
|
|
|
$
|
165
|
|
|
$
|
—
|
|
Total
|
|
$
|
141
|
|
|
$
|
165
|
|
|
$
|
—
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
(in thousands)
|
|
Notional amount
|
|
Fair value
|
|
Notional amount
|
|
Fair value
|
||||||||
Interest rate lock commitments
|
|
$
|
21,954
|
|
|
$
|
248
|
|
|
$
|
13,669
|
|
|
$
|
131
|
|
Forward commitments
|
|
24,911
|
|
|
(62
|
)
|
|
14,465
|
|
|
(24
|
)
|
Derivative Financial Instruments Not Designated as Hedging Instruments
1
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
(in thousands)
|
|
Asset derivatives
|
|
Liability
derivatives
|
|
Asset derivatives
|
|
Liability
derivatives |
||||||||
Interest rate lock commitments
|
|
$
|
248
|
|
|
$
|
—
|
|
|
$
|
133
|
|
|
$
|
2
|
|
Forward commitments
|
|
2
|
|
|
64
|
|
|
4
|
|
|
28
|
|
||||
|
|
$
|
250
|
|
|
$
|
64
|
|
|
$
|
137
|
|
|
$
|
30
|
|
Derivative Financial Instruments Not Designated as Hedging Instruments
|
|
Location of net gains (losses) recognized in the Statement of Income
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
(in thousands)
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||
Interest rate lock commitments
|
|
Mortgage banking income
|
|
$
|
(7
|
)
|
|
$
|
(191
|
)
|
|
$
|
117
|
|
|
$
|
(295
|
)
|
Forward commitments
|
|
Mortgage banking income
|
|
(2
|
)
|
|
192
|
|
|
(38
|
)
|
|
265
|
|
||||
|
|
|
|
$
|
(9
|
)
|
|
$
|
1
|
|
|
$
|
79
|
|
|
$
|
(30
|
)
|
|
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)
|
(17,645
|
)
|
|
—
|
|
|
1,047
|
|
|
(16,598
|
)
|
|
—
|
|
|
57
|
|
|
57
|
|
|||||||
Balance, June 30, 2018
|
$
|
(32,596
|
)
|
|
$
|
—
|
|
|
$
|
(25,943
|
)
|
|
$
|
(58,539
|
)
|
|
$
|
—
|
|
|
$
|
(1,162
|
)
|
|
$
|
(1,162
|
)
|
Balance, December 31, 2016
|
$
|
(7,931
|
)
|
|
$
|
(454
|
)
|
|
$
|
(24,744
|
)
|
|
$
|
(33,129
|
)
|
|
$
|
(454
|
)
|
|
$
|
132
|
|
|
$
|
(322
|
)
|
Current period other comprehensive income
|
2,244
|
|
|
454
|
|
|
657
|
|
|
3,355
|
|
|
454
|
|
|
45
|
|
|
499
|
|
|||||||
Balance, June 30, 2017
|
$
|
(5,687
|
)
|
|
$
|
—
|
|
|
$
|
(24,087
|
)
|
|
$
|
(29,774
|
)
|
|
$
|
—
|
|
|
$
|
177
|
|
|
$
|
177
|
|
|
|
Amount reclassified from AOCI
|
|
|
||||||||||||||
|
|
Three months ended June 30
|
|
Six months ended June 30
|
|
Affected line item in the
|
||||||||||||
(in thousands)
|
|
2018
|
|
2017
|
|
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
|
|
5,350
|
|
|
3,930
|
|
|
10,496
|
|
|
7,851
|
|
|
See Note 8 for additional details
|
||||
Impact of D&Os of the PUC included in regulatory assets
|
|
(4,827
|
)
|
|
(3,581
|
)
|
|
(9,449
|
)
|
|
(7,194
|
)
|
|
See Note 8 for additional details
|
||||
Total reclassifications
|
|
$
|
523
|
|
|
$
|
349
|
|
|
$
|
1,047
|
|
|
$
|
1,111
|
|
|
|
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
|
|
4,853
|
|
|
3,621
|
|
|
9,506
|
|
|
7,239
|
|
|
See Note 8 for additional details
|
||||
Impact of D&Os of the PUC included in regulatory assets
|
|
(4,827
|
)
|
|
(3,581
|
)
|
|
(9,449
|
)
|
|
(7,194
|
)
|
|
See Note 8 for additional details
|
||||
Total reclassifications
|
|
$
|
26
|
|
|
$
|
40
|
|
|
$
|
57
|
|
|
$
|
499
|
|
|
|
|
|
Three months ended June 30, 2018
|
|
Six months ended June 30, 2018
|
||||||||||||||||||||||||||||
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
||||||||||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues from contracts with customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Electric energy sales - residential
|
|
$
|
185,217
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
185,217
|
|
|
$
|
363,806
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
363,806
|
|
Electric energy sales - commercial
|
|
206,169
|
|
|
—
|
|
|
—
|
|
|
206,169
|
|
|
395,167
|
|
|
—
|
|
|
—
|
|
|
395,167
|
|
||||||||
Electric energy sales - large light and power
|
|
214,676
|
|
|
—
|
|
|
—
|
|
|
214,676
|
|
|
406,997
|
|
|
—
|
|
|
—
|
|
|
406,997
|
|
||||||||
Electric energy sales - other
|
|
3,217
|
|
|
—
|
|
|
—
|
|
|
3,217
|
|
|
6,480
|
|
|
—
|
|
|
—
|
|
|
6,480
|
|
||||||||
Utility fees
|
|
751
|
|
|
—
|
|
|
—
|
|
|
751
|
|
|
1,548
|
|
|
—
|
|
|
—
|
|
|
1,548
|
|
||||||||
Bank fees
|
|
—
|
|
|
11,557
|
|
|
—
|
|
|
11,557
|
|
|
—
|
|
|
23,054
|
|
|
—
|
|
|
23,054
|
|
||||||||
Total revenues from contracts with customers
|
|
610,030
|
|
|
11,557
|
|
|
—
|
|
|
621,587
|
|
|
1,173,998
|
|
|
23,054
|
|
|
—
|
|
|
1,197,052
|
|
||||||||
Revenues from other sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Regulatory revenue
|
|
(4,643
|
)
|
|
—
|
|
|
—
|
|
|
(4,643
|
)
|
|
107
|
|
|
—
|
|
|
—
|
|
|
107
|
|
||||||||
Bank interest and dividend income
|
|
—
|
|
|
63,261
|
|
|
—
|
|
|
63,261
|
|
|
—
|
|
|
125,263
|
|
|
—
|
|
|
125,263
|
|
||||||||
Other bank noninterest income
|
|
—
|
|
|
2,286
|
|
|
—
|
|
|
2,286
|
|
|
—
|
|
|
4,206
|
|
|
—
|
|
|
4,206
|
|
||||||||
Other
|
|
2,739
|
|
|
—
|
|
|
47
|
|
|
2,786
|
|
|
4,448
|
|
|
—
|
|
|
75
|
|
|
4,523
|
|
||||||||
Total revenues from other sources
|
|
(1,904
|
)
|
|
65,547
|
|
|
47
|
|
|
63,690
|
|
|
4,555
|
|
|
129,469
|
|
|
75
|
|
|
134,099
|
|
||||||||
Total revenues
|
|
$
|
608,126
|
|
|
$
|
77,104
|
|
|
$
|
47
|
|
|
$
|
685,277
|
|
|
$
|
1,178,553
|
|
|
$
|
152,523
|
|
|
$
|
75
|
|
|
$
|
1,331,151
|
|
Timing of revenue recognition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Services/goods transferred at a point in time
|
|
$
|
751
|
|
|
$
|
11,557
|
|
|
$
|
—
|
|
|
$
|
12,308
|
|
|
$
|
1,548
|
|
|
$
|
23,054
|
|
|
$
|
—
|
|
|
$
|
24,602
|
|
Services/goods transferred over time
|
|
609,279
|
|
|
—
|
|
|
—
|
|
|
609,279
|
|
|
1,172,450
|
|
|
—
|
|
|
—
|
|
|
1,172,450
|
|
||||||||
Total revenues from contracts with customers
|
|
$
|
610,030
|
|
|
$
|
11,557
|
|
|
$
|
—
|
|
|
$
|
621,587
|
|
|
$
|
1,173,998
|
|
|
$
|
23,054
|
|
|
$
|
—
|
|
|
$
|
1,197,052
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||||||||||||||||
|
|
Pension benefits
|
|
Other benefits
|
|
Pension benefits
|
|
Other benefits
|
||||||||||||||||||||||||
(in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Service cost
|
|
$
|
17,428
|
|
|
$
|
15,870
|
|
|
$
|
692
|
|
|
$
|
847
|
|
|
$
|
34,541
|
|
|
$
|
32,364
|
|
|
$
|
1,361
|
|
|
$
|
1,687
|
|
Interest cost
|
|
19,459
|
|
|
20,361
|
|
|
2,030
|
|
|
2,315
|
|
|
38,693
|
|
|
40,577
|
|
|
3,961
|
|
|
4,726
|
|
||||||||
Expected return on plan assets
|
|
(27,224
|
)
|
|
(25,646
|
)
|
|
(3,267
|
)
|
|
(3,104
|
)
|
|
(54,478
|
)
|
|
(51,367
|
)
|
|
(6,459
|
)
|
|
(6,170
|
)
|
||||||||
Amortization of net prior service gain
|
|
(11
|
)
|
|
(13
|
)
|
|
(451
|
)
|
|
(448
|
)
|
|
(21
|
)
|
|
(27
|
)
|
|
(903
|
)
|
|
(897
|
)
|
||||||||
Amortization of net actuarial loss
|
|
7,634
|
|
|
6,707
|
|
|
48
|
|
|
199
|
|
|
15,029
|
|
|
13,220
|
|
|
46
|
|
|
565
|
|
||||||||
Net periodic pension/benefit cost (return)
|
|
17,286
|
|
|
17,279
|
|
|
(948
|
)
|
|
(191
|
)
|
|
33,764
|
|
|
34,767
|
|
|
(1,994
|
)
|
|
(89
|
)
|
||||||||
Impact of PUC D&Os
|
|
7,179
|
|
|
(4,867
|
)
|
|
1,024
|
|
|
527
|
|
|
9,836
|
|
|
(10,023
|
)
|
|
2,095
|
|
|
673
|
|
||||||||
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
|
|
$
|
24,465
|
|
|
$
|
12,412
|
|
|
$
|
76
|
|
|
$
|
336
|
|
|
$
|
43,600
|
|
|
$
|
24,744
|
|
|
$
|
101
|
|
|
$
|
584
|
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Service cost
|
|
$
|
17,007
|
|
|
$
|
15,436
|
|
|
$
|
688
|
|
|
$
|
841
|
|
|
$
|
33,680
|
|
|
$
|
31,530
|
|
|
$
|
1,352
|
|
|
$
|
1,676
|
|
Interest cost
|
|
17,937
|
|
|
18,726
|
|
|
1,955
|
|
|
2,231
|
|
|
35,647
|
|
|
37,315
|
|
|
3,814
|
|
|
4,558
|
|
||||||||
Expected return on plan assets
|
|
(25,577
|
)
|
|
(23,935
|
)
|
|
(3,216
|
)
|
|
(3,056
|
)
|
|
(51,184
|
)
|
|
(47,946
|
)
|
|
(6,356
|
)
|
|
(6,073
|
)
|
||||||||
Amortization of net prior service loss (gain)
|
|
2
|
|
|
2
|
|
|
(451
|
)
|
|
(451
|
)
|
|
4
|
|
|
4
|
|
|
(902
|
)
|
|
(902
|
)
|
||||||||
Amortization of net actuarial loss
|
|
6,941
|
|
|
6,190
|
|
|
49
|
|
|
192
|
|
|
13,651
|
|
|
12,196
|
|
|
49
|
|
|
551
|
|
||||||||
Net periodic pension/benefit cost (return)
|
|
16,310
|
|
|
16,419
|
|
|
(975
|
)
|
|
(243
|
)
|
|
31,798
|
|
|
33,099
|
|
|
(2,043
|
)
|
|
(190
|
)
|
||||||||
Impact of PUC D&Os
|
|
7,179
|
|
|
(4,867
|
)
|
|
1,024
|
|
|
527
|
|
|
9,836
|
|
|
(10,023
|
)
|
|
2,095
|
|
|
673
|
|
||||||||
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
|
|
$
|
23,489
|
|
|
$
|
11,552
|
|
|
$
|
49
|
|
|
$
|
284
|
|
|
$
|
41,634
|
|
|
$
|
23,076
|
|
|
$
|
52
|
|
|
$
|
483
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
(in millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
||||||||
Share-based compensation expense
1
|
|
$
|
2.8
|
|
|
$
|
2.2
|
|
|
$
|
4.4
|
|
|
$
|
3.3
|
|
Income tax benefit
|
|
0.5
|
|
|
0.8
|
|
|
0.7
|
|
|
1.2
|
|
||||
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
||||||||
Share-based compensation expense
1
|
|
0.9
|
|
|
0.7
|
|
|
1.5
|
|
|
1.1
|
|
||||
Income tax benefit
|
|
0.2
|
|
|
0.3
|
|
|
0.3
|
|
|
0.4
|
|
1
|
For the three and six months ended
June 30, 2018
and 2017, the Company has not capitalized any share-based compensation.
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
(dollars in millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Shares granted
|
|
37,747
|
|
|
35,000
|
|
|
38,821
|
|
|
35,770
|
|
||||
Fair value
|
|
$
|
1.3
|
|
|
$
|
1.1
|
|
|
$
|
1.3
|
|
|
$
|
1.2
|
|
Income tax benefit
|
|
0.3
|
|
|
0.4
|
|
|
0.3
|
|
|
0.5
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||||||||||
Outstanding, beginning of period
|
208,088
|
|
|
$
|
32.97
|
|
|
236,036
|
|
|
$
|
31.42
|
|
|
197,047
|
|
|
$
|
31.53
|
|
|
220,683
|
|
|
$
|
29.57
|
|
||||
Granted
|
3,159
|
|
|
33.78
|
|
|
896
|
|
|
33.06
|
|
|
92,064
|
|
|
34.09
|
|
|
97,873
|
|
|
33.47
|
|
||||||||
Vested
|
(448
|
)
|
|
31.94
|
|
|
(7,370
|
)
|
|
29.17
|
|
|
(75,683
|
)
|
|
30.56
|
|
|
(88,994
|
)
|
|
28.88
|
|
||||||||
Forfeited
|
(9,943
|
)
|
|
32.05
|
|
|
(23,079
|
)
|
|
31.50
|
|
|
(12,572
|
)
|
|
32.27
|
|
|
(23,079
|
)
|
|
31.50
|
|
||||||||
Outstanding, end of period
|
200,856
|
|
|
$
|
33.03
|
|
|
206,483
|
|
|
$
|
31.50
|
|
|
200,856
|
|
|
$
|
33.03
|
|
|
206,483
|
|
|
$
|
31.50
|
|
||||
Total weighted-average grant-date fair value of shares granted (in millions)
|
$
|
0.1
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
3.1
|
|
|
|
|
$
|
3.3
|
|
|
|
(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 June 30
|
|
Six months ended June 30
|
||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||||||||||
Outstanding, beginning of period
|
66,791
|
|
|
$
|
38.84
|
|
|
36,971
|
|
|
$
|
39.51
|
|
|
32,904
|
|
|
$
|
39.51
|
|
|
83,106
|
|
|
$
|
22.95
|
|
||||
Granted
|
1,315
|
|
|
38.20
|
|
|
233
|
|
|
39.51
|
|
|
36,941
|
|
|
38.21
|
|
|
37,204
|
|
|
39.51
|
|
||||||||
Vested (issued or unissued and cancelled)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(83,106
|
)
|
|
22.95
|
|
||||||||
Forfeited
|
(1,929
|
)
|
|
38.85
|
|
|
(3,434
|
)
|
|
39.51
|
|
|
(3,668
|
)
|
|
38.84
|
|
|
(3,434
|
)
|
|
39.51
|
|
||||||||
Outstanding, end of period
|
66,177
|
|
|
$
|
38.82
|
|
|
33,770
|
|
|
$
|
39.51
|
|
|
66,177
|
|
|
$
|
38.82
|
|
|
33,770
|
|
|
$
|
39.51
|
|
||||
Total weighted-average grant-date fair value of shares granted (in millions)
|
$
|
0.1
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
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 June 30
|
|
Six months ended June 30
|
||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||||||||||
Outstanding, beginning of period
|
267,167
|
|
|
$
|
33.80
|
|
|
147,888
|
|
|
$
|
33.48
|
|
|
131,616
|
|
|
$
|
33.47
|
|
|
109,816
|
|
|
$
|
25.18
|
|
||||
Granted
|
5,257
|
|
|
33.52
|
|
|
930
|
|
|
32.58
|
|
|
147,766
|
|
|
34.08
|
|
|
148,818
|
|
|
33.47
|
|
||||||||
Vested
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(109,816
|
)
|
|
25.18
|
|
||||||||
Forfeited
|
(7,717
|
)
|
|
33.80
|
|
|
(13,740
|
)
|
|
33.48
|
|
|
(14,675
|
)
|
|
33.80
|
|
|
(13,740
|
)
|
|
33.48
|
|
||||||||
Outstanding, end of period
|
264,707
|
|
|
$
|
33.79
|
|
|
135,078
|
|
|
$
|
33.47
|
|
|
264,707
|
|
|
$
|
33.79
|
|
|
135,078
|
|
|
$
|
33.47
|
|
||||
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions)
|
$
|
0.2
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
5.0
|
|
|
|
|
$
|
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.
|
Six months ended June 30
|
|
2018
|
|
2017
|
||||
(in millions)
|
|
|
|
|
||||
Supplemental disclosures of cash flow information
|
|
|
|
|
|
|
||
HEI consolidated
|
|
|
|
|
||||
Interest paid to non-affiliates
|
|
$
|
45
|
|
|
$
|
46
|
|
Income taxes paid (including refundable credits)
|
|
36
|
|
|
21
|
|
||
Hawaiian Electric consolidated
|
|
|
|
|
||||
Interest paid to non-affiliates
|
|
32
|
|
|
36
|
|
||
Income taxes paid (including refundable credits)
|
|
35
|
|
|
8
|
|
||
Supplemental disclosures of noncash activities
|
|
|
|
|
|
|
||
HEI consolidated
|
|
|
|
|
||||
Property, plant and equipment
|
|
|
|
|
||||
Estimated fair value of noncash contributions in aid of construction (investing)
|
|
5
|
|
|
2
|
|
||
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing)
|
|
42
|
|
|
38
|
|
||
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
|
|
4
|
|
|
11
|
|
||
Obligations to fund low income housing investments (investing)
|
|
6
|
|
|
—
|
|
||
Transfer of retail repurchase agreements to deposit liabilities (financing)
|
|
102
|
|
|
—
|
|
||
Unsettled trades to purchase investment securities (investing)
|
|
10
|
|
|
—
|
|
||
Hawaiian Electric consolidated
|
|
|
|
|
||||
Electric utility property, plant and equipment
|
|
|
|
|
||||
Estimated fair value of noncash contributions in aid of construction (investing)
|
|
5
|
|
|
2
|
|
||
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing)
|
|
28
|
|
|
36
|
|
|
|
|
|
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
|
|||||||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale investment securities
|
|
$
|
1,409,528
|
|
|
$
|
—
|
|
|
$
|
1,394,101
|
|
|
$
|
15,427
|
|
|
$
|
1,409,528
|
|
Held-to-maturity investment securities
|
|
62,630
|
|
|
—
|
|
|
61,444
|
|
|
—
|
|
|
61,444
|
|
|||||
Stock in Federal Home Loan Bank
|
|
10,158
|
|
|
—
|
|
|
10,158
|
|
|
—
|
|
|
10,158
|
|
|||||
Loans, net
|
|
4,727,189
|
|
|
—
|
|
|
5,250
|
|
|
4,774,079
|
|
|
4,779,329
|
|
|||||
Mortgage servicing rights
|
|
8,509
|
|
|
—
|
|
|
—
|
|
|
13,423
|
|
|
13,423
|
|
|||||
Derivative assets
|
|
24,537
|
|
|
—
|
|
|
250
|
|
|
—
|
|
|
250
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
1
|
|
757,265
|
|
|
—
|
|
|
745,295
|
|
|
—
|
|
|
745,295
|
|
|||||
Short-term borrowings—other than bank
|
|
202,857
|
|
|
—
|
|
|
202,857
|
|
|
—
|
|
|
202,857
|
|
|||||
Other bank borrowings
|
|
126,930
|
|
|
—
|
|
|
126,904
|
|
|
—
|
|
|
126,904
|
|
|||||
Long-term debt, net—other than bank
|
|
1,783,009
|
|
|
—
|
|
|
1,816,310
|
|
|
—
|
|
|
1,816,310
|
|
|||||
Derivative liabilities
|
|
25,445
|
|
|
56
|
|
|
114
|
|
|
—
|
|
|
170
|
|
|||||
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
|
91,880
|
|
|
—
|
|
|
91,880
|
|
|
—
|
|
|
91,880
|
|
|||||
Long-term debt, net
|
|
1,468,457
|
|
|
—
|
|
|
1,511,103
|
|
|
—
|
|
|
1,511,103
|
|
|||||
Derivative liabilities-window forward contracts
|
|
3,117
|
|
|
—
|
|
|
106
|
|
|
—
|
|
|
106
|
|
|||||
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
|
|
|
|
June 30, 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
|
|
$
|
—
|
|
|
$
|
1,177,832
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,201,473
|
|
|
$
|
—
|
|
U.S. Treasury and federal agency obligations
|
|
—
|
|
|
175,933
|
|
|
—
|
|
|
—
|
|
|
184,298
|
|
|
—
|
|
||||||
Corporate bonds
|
|
—
|
|
|
40,336
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Mortgage revenue bond
|
|
—
|
|
|
—
|
|
|
15,427
|
|
|
—
|
|
|
—
|
|
|
15,427
|
|
||||||
|
|
$
|
—
|
|
|
$
|
1,394,101
|
|
|
$
|
15,427
|
|
|
$
|
—
|
|
|
$
|
1,385,771
|
|
|
$
|
15,427
|
|
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate lock commitments (bank segment)
1
|
|
$
|
—
|
|
|
$
|
248
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
133
|
|
|
$
|
—
|
|
Forward commitments (bank segment)
1
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||||
Window forward contracts (electric utility segment)
2
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
256
|
|
|
—
|
|
||||||
|
|
$
|
—
|
|
|
$
|
250
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
393
|
|
|
$
|
—
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate lock commitments (bank segment)
1
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
Forward commitments (bank segment)
1
|
|
56
|
|
|
8
|
|
|
—
|
|
|
20
|
|
|
8
|
|
|
—
|
|
||||||
Window forward contracts (electric utility segment)
2
|
|
—
|
|
|
106
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
$
|
56
|
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
20
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
Mortgage revenue bond
|
|
2018
|
2017
|
|
2018
|
2017
|
||||||||
(in thousands)
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
15,427
|
|
$
|
15,427
|
|
|
$
|
15,427
|
|
$
|
15,427
|
|
Principal payments received
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Purchases
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Unrealized gain (loss) included in other comprehensive income
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Ending balance
|
|
$
|
15,427
|
|
$
|
15,427
|
|
|
$
|
15,427
|
|
$
|
15,427
|
|
|
|
|
|
Fair value measurements
|
||||||||||||
(in thousands)
|
|
Balance
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
$
|
232
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
232
|
|
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
|
||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||
Residential loans
|
|
$
|
232
|
|
|
Fair value of collateral
|
|
Appraised value less 7% selling cost
|
|
62-69%
|
|
68%
|
Total loans
|
|
$
|
232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
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 June 30
|
|
%
|
|
|
||||||
share amounts)
|
|
2018
|
|
2017
|
|
change
|
|
Primary reason(s)*
|
||||
Revenues
|
|
$
|
685,277
|
|
|
$
|
632,281
|
|
|
8
|
|
Increases for the electric utility and bank segments
|
Operating income
|
|
78,799
|
|
|
77,802
|
|
|
1
|
|
Increase for the bank segment and lower operating losses for the “other” segment, partly offset by slight decrease for the electric utility segment
|
||
Net income for common stock
|
|
46,054
|
|
|
38,661
|
|
|
19
|
|
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
|
|
$
|
0.42
|
|
|
$
|
0.36
|
|
|
17
|
|
Higher net income
|
Weighted-average number of common shares outstanding
|
|
108,842
|
|
|
108,750
|
|
|
—
|
|
Issuances of shares under compensation and director stock plans.
|
(in thousands, except per
|
|
Six months ended June 30
|
|
%
|
|
|
||||||
share amounts)
|
|
2018
|
|
2017
|
|
change
|
|
Primary reason(s)*
|
||||
Revenues
|
|
$
|
1,331,151
|
|
|
$
|
1,223,843
|
|
|
9
|
|
Increases for the electric utility and bank segments
|
Operating income
|
|
150,688
|
|
|
147,540
|
|
|
2
|
|
Increase for the bank segment and lower operating losses for the “other” segment, partly offset by slight decrease for the electric utility segment
|
||
Net income for common stock
|
|
86,301
|
|
|
72,854
|
|
|
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
|
|
$
|
0.79
|
|
|
$
|
0.67
|
|
|
18
|
|
Higher net income
|
Weighted-average number of common shares outstanding
|
|
108,830
|
|
|
108,712
|
|
|
—
|
|
Issuances of shares under compensation and director stock plans.
|
*
|
Also, see segment discussions which follow.
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
|
|
||||||||||||
(in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Primary reason(s)
|
||||||||
Revenues
|
|
$
|
47
|
|
|
$
|
77
|
|
|
$
|
75
|
|
|
$
|
172
|
|
|
|
Operating loss
|
|
(3,262
|
)
|
|
(3,677
|
)
|
|
(7,629
|
)
|
|
(8,655
|
)
|
|
Second quarter and first six months of 2018 includes $1.3 million and $2.3 million, respectively, of operating income from Pacific Current, LLC
1
. Second quarter and first six months of 2018 corporate expense was slightly higher than same periods in 2017.
|
||||
Net loss
|
|
(5,676
|
)
|
|
(3,716
|
)
|
|
(11,864
|
)
|
|
(6,801
|
)
|
|
Second quarter and first six months of 2018 includes higher interest expense (due to higher interest rates and balances 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 in second quarter and first six months of 2018 as compared to the same periods in 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)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||
Short-term borrowings—other than bank
|
|
$
|
203
|
|
|
5
|
%
|
|
$
|
118
|
|
|
3
|
%
|
Long-term debt, net—other than bank
|
|
1,783
|
|
|
43
|
|
|
1,684
|
|
|
43
|
|
||
Preferred stock of subsidiaries
|
|
34
|
|
|
1
|
|
|
34
|
|
|
1
|
|
||
Common stock equity
|
|
2,103
|
|
|
51
|
|
|
2,097
|
|
|
53
|
|
||
|
|
$
|
4,123
|
|
|
100
|
%
|
|
$
|
3,933
|
|
|
100
|
%
|
|
|
Average balance
|
|
Balance
|
||||||||
(in millions)
|
|
Six months ended June 30, 2018
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||
Commercial paper
|
|
$
|
49
|
|
|
$
|
61
|
|
|
$
|
63
|
|
Line of credit draws
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Undrawn capacity under HEI’s line of credit facility
|
|
|
|
150
|
|
|
150
|
|
Three months ended June 30
|
|
Increase
|
|
|
||||||||||||
2018
|
|
2017
|
|
(decrease)
|
|
(dollars in millions, except per barrel amounts)
|
||||||||||
$
|
608
|
|
|
$
|
557
|
|
|
$
|
51
|
|
|
|
|
Revenues.
Net increase largely due to:
|
||
|
|
|
|
|
|
$
|
27
|
|
|
higher fuel oil prices
1
|
||||||
|
|
|
|
|
|
19
|
|
|
higher purchased power energy costs
2
|
|||||||
|
|
|
|
|
|
12
|
|
|
higher RAM revenue
|
|||||||
|
|
|
|
|
|
10
|
|
|
higher rate relief
|
|||||||
|
|
|
|
|
|
8
|
|
|
higher KWH generated
|
|||||||
|
|
|
|
|
|
(3
|
)
|
|
lower PPAC revenues
|
|||||||
|
|
|
|
|
|
(8
|
)
|
|
lower KWH purchased
|
|||||||
|
|
|
|
|
|
(13
|
)
|
|
Tax reform adjustment
|
|||||||
172
|
|
|
141
|
|
|
31
|
|
|
|
|
Fuel oil expense.
Increase due to higher fuel oil prices and higher KWH generated
|
|||||
161
|
|
|
153
|
|
|
8
|
|
|
|
|
Purchased power expense.
Increase due to higher fuel oil prices
|
|||||
|
|
|
|
|
|
18
|
|
|
higher purchased power energy price
|
|||||||
|
|
|
|
|
|
(1
|
)
|
|
lower AES Hawaii capacity charges
|
|||||||
|
|
|
|
|
|
(1
|
)
|
|
lower PGV capacity charges
|
|||||||
|
|
|
|
|
|
(7
|
)
|
|
lower KWH purchased
|
|||||||
113
|
|
|
105
|
|
|
8
|
|
|
|
|
Operation and maintenance expenses
. Net increase due to:
|
|||||
|
|
|
|
|
|
7
|
|
|
reset of pension costs as part of rate case interim decisions
|
|||||||
|
|
|
|
|
|
1
|
|
|
Big Island lava eruption response costs
|
|||||||
|
|
|
|
|
|
1
|
|
|
higher vegetation management costs
|
|||||||
|
|
|
|
|
|
(2
|
)
|
|
higher overhaul costs related to Waiau and Kahe plants in 2017
|
|||||||
108
|
|
|
101
|
|
|
7
|
|
|
|
|
Other expenses.
Increase due to higher revenue taxes from higher revenue, coupled with higher depreciation expense for plant investments in 2017
|
|||||
55
|
|
|
56
|
|
|
(1
|
)
|
|
|
|
Operating income.
Decrease due to higher operation and maintenance and other expenses offset by higher revenue
|
|||||
31
|
|
|
26
|
|
|
5
|
|
|
|
|
Net income for common stock.
Increase due to higher RAM and rate relief, offset by higher expenses
|
|||||
|
|
|
|
|
|
|
|
|
||||||||
2,128
|
|
|
2,150
|
|
|
(22
|
)
|
|
|
|
Kilowatthour sales (millions)
3
|
|||||
$
|
81.84
|
|
|
$
|
69.86
|
|
|
$
|
11.98
|
|
|
|
|
Average fuel oil cost per barrel
1
|
Six months ended June 30
|
|
Increase
|
|
|
||||||||||||
2018
|
|
2017
|
|
(decrease)
|
|
(dollars in millions, except per barrel amounts)
|
||||||||||
$
|
1,179
|
|
|
$
|
1,075
|
|
|
$
|
104
|
|
|
|
|
Revenues.
Net increase largely due to:
|
||
|
|
|
|
|
|
$
|
61
|
|
|
higher fuel oil prices
1
|
||||||
|
|
|
|
|
|
28
|
|
|
higher RAM revenues
|
|||||||
|
|
|
|
|
|
23
|
|
|
higher purchased power energy costs
2
|
|||||||
|
|
|
|
|
|
17
|
|
|
higher rate relief
|
|||||||
|
|
|
|
|
|
(3
|
)
|
|
lower KWH generated
|
|||||||
|
|
|
|
|
|
(21
|
)
|
|
Tax reform adjustment
|
|||||||
339
|
|
|
286
|
|
|
53
|
|
|
|
|
Fuel oil expense.
Increase due to higher fuel oil prices, partially offset by lower KWH generated
|
|||||
301
|
|
|
280
|
|
|
21
|
|
|
|
|
Purchased power expense.
Increase due to higher fuel oil prices
|
|||||
|
|
|
|
|
|
21
|
|
|
higher purchased power energy price
|
|||||||
|
|
|
|
|
|
2
|
|
|
higher AES Hawaii capacity charges
|
|||||||
|
|
|
|
|
|
(3
|
)
|
|
lower KWH purchased
|
|||||||
220
|
|
|
204
|
|
|
16
|
|
|
|
|
Operation and maintenance expenses
. Net increase due to:
|
|||||
|
|
|
|
|
|
10
|
|
|
reset of pension costs as part of rate case interim decisions
|
|||||||
|
|
|
|
|
|
2
|
|
|
write-off of smart grid costs
|
|||||||
|
|
|
|
|
|
1
|
|
|
higher ERP costs related to outside consultants
|
|||||||
|
|
|
|
|
|
1
|
|
|
one-time rent expense adjustment for existing substation land
|
|||||||
|
|
|
|
|
|
1
|
|
|
Big Island lava eruption response costs
|
|||||||
|
|
|
|
|
|
1
|
|
|
higher vegetation management costs
|
|||||||
212
|
|
|
199
|
|
|
13
|
|
|
|
|
Other expenses.
Increase due to higher revenue taxes from higher revenue, coupled with higher depreciation expense for plant investments in 2017
|
|||||
107
|
|
|
107
|
|
|
—
|
|
|
|
|
Operating income.
Higher revenue from RAM and rate relief offset by higher operation and maintenance and other expenses
|
|||||
59
|
|
|
47
|
|
|
12
|
|
|
|
|
Net income for common stock.
Increase due to higher RAM and rate relief, offset by higher expenses
|
|||||
|
|
|
|
|
|
|
|
|
||||||||
4,140
|
|
|
4,188
|
|
|
(48
|
)
|
|
|
|
Kilowatthour sales (millions)
3
|
|||||
$
|
81.26
|
|
|
$
|
67.78
|
|
|
$
|
13.48
|
|
|
|
|
Average fuel oil cost per barrel
1
|
||
462,547
|
|
|
460,858
|
|
|
1,689
|
|
|
|
|
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 June 30, 2018
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|||||||||
Utility returns
|
|
6.32
|
|
|
6.92
|
|
|
5.96
|
|
|
7.21
|
|
|
7.51
|
|
|
6.78
|
|
|
7.65
|
|
|
8.18
|
|
|
6.96
|
|
PUC-allowed returns
|
|
7.57
|
|
|
7.80
|
|
|
7.34
|
|
|
9.50
|
|
|
9.50
|
|
|
9.00
|
|
|
9.50
|
|
|
9.50
|
|
|
9.00
|
|
Difference
|
|
(1.25
|
)
|
|
(0.88
|
)
|
|
(1.38
|
)
|
|
(2.29
|
)
|
|
(1.99
|
)
|
|
(2.22
|
)
|
|
(1.85
|
)
|
|
(1.32
|
)
|
|
(2.04
|
)
|
Test year
(dollars in millions)
|
|
Date
(filed/
implemented)
|
|
Amount
|
|
% over
rates in
effect
|
|
ROACE
(%)
|
|
RORB
(%)
|
|
Rate
base
|
|
Common
equity
%
|
|
Stipulated agreement
reached with
Consumer Advocate
|
||||||||
Hawaiian Electric
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2017
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
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
|
|
|
|
||
Final increase
|
|
|
|
(0.6
|
)
|
|
—
|
|
|
9.50
|
|
|
7.57
|
|
|
1,993
|
|
|
57.10
|
|
|
|
||
Hawaii Electric Light
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2016
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
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
|
|
|
|
||
Final increase
|
|
|
|
—
|
|
|
—
|
|
|
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
|
|
|
Yes
|
Joint Statement of Probable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Entitlement
(which will be
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
superceded by any PUC interim D&O)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
At old depreciation rates
|
|
7/6/18
|
|
6.4
|
|
|
1.95
|
|
|
9.50
|
|
|
7.43
|
|
|
465
|
|
|
57.02
|
|
|
|
||
At new depreciation rates
|
|
7/6/18
|
|
12.5
|
|
|
3.82
|
|
|
9.50
|
|
|
7.43
|
|
|
462
|
|
|
57.02
|
|
|
|
1
|
On June 22, 2018, the PUC issued a final decision and order approving the final increase amounts in the table above for Hawaiian Electric. The effective date of this final increase is subject to PUC-approval of Hawaiian Electric’s revised rate schedules and tariffs.
|
•
|
Authorized the use of consolidated depreciation and amortization rates rather than separate depreciation and amortization rates for the three utilities
|
•
|
Established revised depreciation and amortization rates for the three utilities
|
•
|
Approved the 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, beginning with Maui Electric’s ongoing 2018 test year
|
•
|
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 in commercial operations by the end of the third quarter 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 solar energy on Oahu with Waipio PV, LLC for 45.9 MW, Lanikuhana Solar, LLC for 14.7 MW and Kawailoa Solar, LLC for 49.0 MW. In July 2017, the PUC approved the three NRG PPAs, subject to modifications and conditions. The three projects are expected to be in service by the end of 2019.
|
•
|
In July 2018, the PUC approved the Maui Electric’s PPA 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 2.64 MW at any time to the Molokai system and is expected to be in service by end of 2019.
|
•
|
As of
June 30, 2018
, there were approximately 449 MW, 91 MW and 101 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 Standard Interconnection Agreement (SIA), NEM, Customer Grid Supply, Customer Self Supply, Grid Supply Plus and Smart Export. As of
June 30, 2018
, an estimated 28% of single family homes on the islands of Oahu, Hawaii and Maui have installed private rooftop solar systems, and approximately 17% of the Utilities' total customers have solar systems.
|
•
|
The Utilities began accepting energy from feed-in tariff projects in 2011. As of
June 30, 2018
, there were 31 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 2019. 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 2019, 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
|
•
|
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 for Large Wind on the island of Oahu. Hawaiian Electric is in non-binding confidential negotiations with a developer that responded.
|
•
|
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)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||
Short-term borrowings
|
|
$
|
92
|
|
|
3
|
%
|
|
$
|
5
|
|
|
—
|
%
|
Long-term debt, net
|
|
1,468
|
|
|
42
|
|
|
1,369
|
|
|
42
|
|
||
Preferred stock
|
|
34
|
|
|
1
|
|
|
34
|
|
|
1
|
|
||
Common stock equity
|
|
1,852
|
|
|
54
|
|
|
1,845
|
|
|
57
|
|
||
|
|
$
|
3,446
|
|
|
100
|
%
|
|
$
|
3,253
|
|
|
100
|
%
|
|
|
Average balance
|
|
Balance
|
||||||||
(in millions)
|
|
Six months ended June 30, 2018
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||
Short-term borrowings
1
|
|
|
|
|
|
|
|
|
|
|||
Commercial paper
|
|
$
|
88
|
|
|
$
|
92
|
|
|
$
|
5
|
|
Line of credit draws
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Borrowings from HEI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Undrawn capacity under line of credit facility
|
|
—
|
|
|
200
|
|
|
200
|
|
|
Six months ended June 30,
|
|
|
||||||||
(in thousands)
|
2018
|
|
2017
|
|
Change
|
||||||
Net cash provided by operating activities
|
$
|
69,836
|
|
|
$
|
138,755
|
|
|
$
|
(68,919
|
)
|
Net cash used in investing activities
|
(195,346
|
)
|
|
(166,338
|
)
|
|
(29,008
|
)
|
|||
Net cash provided by (used in) financing activities
|
133,853
|
|
|
(4,121
|
)
|
|
137,974
|
|
|
|
Three months ended June 30
|
|
Increase
|
|
|
||||||||
(in millions)
|
|
2018
|
|
2017
|
|
(decrease)
|
|
Primary reason(s)
|
||||||
Interest income
|
|
$
|
63
|
|
|
$
|
59
|
|
|
$
|
4
|
|
|
The increase in interest income was the result of increases in balances and yields on earning assets. ASB’s average investment securities portfolio balance for the three months ended June 30, 2018 increased by $218 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 15 basis points as new investment purchase yields were higher due to the rising interest rate environment. ASB’s average loan portfolio balance for the three months ended June 30, 2018 increased by $28 million compared to the same period in 2017 as the average residential, home equity line of credit and consumer loan portfolios for the three months ended June 30, 2018 increased by $49 million, $55 million and $31 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 average commercial and commercial real estate balances decreased by $70 million and $37 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 yield on loans benefited from the rising interest rate environment, which resulted in an increase in yield of 17 basis points.
|
Noninterest income
|
|
14
|
|
|
16
|
|
|
(2
|
)
|
|
Noninterest income decreased for the three months ended June 30, 2018 compared to noninterest income for the three months ended June 30, 2017 primarily due to lower fees from other financial services in 2018 as a result of debit card interchange expenses being netted against income beginning in 2018. 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
|
|
77
|
|
|
75
|
|
|
2
|
|
|
|
|||
Interest expense
|
|
3
|
|
|
3
|
|
|
—
|
|
|
Interest expense was flat for the three months ended June 30, 2018 compared to the same period in 2017 as higher interest expense from the growth in time certificates was partly offset by lower interest expense on other borrowings as a result of lower FHLB advances. Average deposit balances for the three months ended June 30, 2018 increased by $363 million compared to the same period in 2017 due to an increase in core deposits and time certificates of $277 million and $86 million, respectively. Average other borrowings for the three months ended June 30, 2018 decreased by $69 million compared to the same period in 2017 due to a decrease in the average FHLB advances and repurchase agreements of $49 million and $20 million, respectively. The interest-bearing liability rate for the three months ended June 30, 2018 increased by 4 basis points compared to the same period in 2017.
|
|||
Provision for loan losses
|
|
3
|
|
|
3
|
|
|
—
|
|
|
The provision for loan losses was flat for the three months ended June 30, 2018 compared to the provision for loan losses for the three months ended June 30, 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 and residential loan portfolios, partly offset by the release of reserves for the home equity line of credit, commercial and commercial real estate loan portfolios as result of improved credit quality in those loan portfolios. The provision for loan losses for 2017 was primarily due to increased loan loss reserves for the consumer loan portfolio. Delinquency rates have increased from 0.44% at June 30, 2017 to 0.54% at June 30, 2018. The annualized net charge-off ratio for the three months ended June 30, 2018 was 0.32% compared to an annualized net charge-off ratio of 0.21% for the same period in 2017.
|
|||
Noninterest expense
|
|
44
|
|
|
45
|
|
|
(1
|
)
|
|
The decrease in noninterest expense for the three months ended June 30, 2018 compared to the same period in 2017 was primarily due to the reclassification of debit card interchange expenses to noninterest income in accordance with the new revenue recognition accounting standard that became effective on January 1, 2018.
|
|||
Expenses
|
|
50
|
|
|
51
|
|
|
(1
|
)
|
|
|
|||
Operating income
|
|
27
|
|
|
24
|
|
|
3
|
|
|
The increase in operating income for the three months ended June 30, 2018 compared to the same period in 2017 was primarily due to higher interest income and lower noninterest expense, partly offset by lower noninterest income.
|
|||
Net income
|
|
21
|
|
|
17
|
|
|
4
|
|
|
The increase in net income for the three months ended June 30, 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.
|
|
|
Six months ended June 30
|
|
Increase
|
|
|
||||||||
(in millions)
|
|
2018
|
|
2017
|
|
(decrease)
|
|
Primary reason(s)
|
||||||
Interest income
|
|
$
|
125
|
|
|
$
|
117
|
|
|
$
|
8
|
|
|
The increase in interest income was primarily 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 six months ended June 30, 2018 increased by $271 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 12 basis points as new investment purchase yields were higher due to the rising interest rate environment. ASB’s average loan portfolio balance for the six months ended June 30, 2018 increased by $6 million compared to the same period in 2017 as increases in the average residential, home equity line of credit and consumer loan portfolios for the six months ended June 30, 2018 of $52 million, $54 million and $37 million, respectively, were largely offset by decreases in the the average commercial and commercial real estate balances of $90 million and $47 million, respectively. The growth in residential, home equity line of credit and consumer loan portfolios aligned with ASB’s portfolio mix target and loan growth strategy. The decrease in commercial and commercial real estate 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 yield on loans benefited from the rising interest rate environment, which resulted in an increase in yields of 18 basis points.
|
Noninterest income
|
|
27
|
|
|
31
|
|
|
(4
|
)
|
|
Noninterest income decreased for the six months ended June 30, 2018 compared to noninterest income for the six months ended June 30, 2017 primarily due to lower fees from other financial services in 2018 as a result of debit card interchange expenses being netted against income beginning in 2018. 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
|
|
152
|
|
|
148
|
|
|
4
|
|
|
|
|||
Interest expense
|
|
7
|
|
|
6
|
|
|
1
|
|
|
Interest expense increased slightly for the six months ended June 30, 2018 compared to the same period in 2017 due to higher interest expense from the growth in time certificates, but was partially offset by lower interest expense on other borrowings as a result of lower FHLB advances. Average deposit balances for the six months ended June 30, 2018 increased by $331 million compared to the same period in 2017 due to an increase in core deposits and time certificates of $222 million and $109 million, respectively. Average other borrowings for the six months ended June 30, 2018 decreased by $29 million compared to the same period in 2017 due to a decrease in FHLB advances, partly offset by an increase in repurchase agreements. The interest-bearing liability rate for the six months ended June 30, 2018 increased by 4 basis points compared to the same period in 2017.
|
|||
Provision for loan losses
|
|
6
|
|
|
7
|
|
|
(1
|
)
|
|
The provision for loan losses decreased slightly for the six months ended June 30, 2018 compared to the provision for loan losses for the six months ended June 30, 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 loan portfolio. 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 the commercial real estate loan portfolio due to the downgrade of a specific commercial real estate relationship. Delinquency rates have increased from 0.44% at June 30, 2017 to 0.54% at June 30, 2018. The annualized net charge-off ratio for the six months ended June 30, 2018 was 0.30% compared to an annualized net charge-off ratio of 0.25% for the same period in 2017.
|
|||
Noninterest expense
|
|
87
|
|
|
86
|
|
|
1
|
|
|
The increase in noninterest expense for the six months ended June 30, 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, and higher service expenses, partly offset by the reclassification of debit card interchange expenses in accordance with the new revenue recognition accounting standard.
|
|||
Expenses
|
|
100
|
|
|
99
|
|
|
1
|
|
|
|
|||
Operating income
|
|
52
|
|
|
49
|
|
|
3
|
|
|
The increase in operating income for the six months ended June 30, 2018 compared to the same period in 2017 was primarily due to higher interest income, partly offset by lower noninterest income and higher noninterest expenses.
|
|||
Net income
|
|
40
|
|
|
33
|
|
|
7
|
|
|
The increase in net income for the six months ended June 30, 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 June 30
|
|
Six months ended June 30
|
||||||||
(%)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Return on average assets
|
|
1.20
|
|
|
1.02
|
|
|
1.16
|
|
|
1.00
|
|
Return on average equity
|
|
13.56
|
|
|
11.25
|
|
|
13.07
|
|
|
11.04
|
|
Net interest margin
|
|
3.76
|
|
|
3.68
|
|
|
3.76
|
|
|
3.68
|
|
|
|
Three months ended June 30
|
||||||||||||||||||||
|
|
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
|
|
$
|
53,677
|
|
|
$
|
240
|
|
|
1.77
|
|
|
$
|
46,507
|
|
|
$
|
121
|
|
|
1.03
|
|
FHLB stock
|
|
10,245
|
|
|
77
|
|
|
2.99
|
|
|
11,759
|
|
|
57
|
|
|
1.96
|
|
||||
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
1,485,780
|
|
|
8,182
|
|
|
2.20
|
|
|
1,267,945
|
|
|
6,481
|
|
|
2.04
|
|
||||
Non-taxable
|
|
15,427
|
|
|
162
|
|
|
4.16
|
|
|
15,427
|
|
|
160
|
|
|
4.11
|
|
||||
Total investment securities
|
|
1,501,207
|
|
|
8,344
|
|
|
2.22
|
|
|
1,283,372
|
|
|
6,641
|
|
|
2.07
|
|
||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential 1-4 family
|
|
2,119,594
|
|
|
21,581
|
|
|
4.07
|
|
|
2,070,450
|
|
|
22,163
|
|
|
4.28
|
|
||||
Commercial real estate
|
|
879,748
|
|
|
9,959
|
|
|
4.49
|
|
|
917,019
|
|
|
9,722
|
|
|
4.21
|
|
||||
Home equity line of credit
|
|
932,828
|
|
|
8,354
|
|
|
3.59
|
|
|
877,462
|
|
|
7,248
|
|
|
3.31
|
|
||||
Residential land
|
|
16,525
|
|
|
223
|
|
|
5.41
|
|
|
16,111
|
|
|
217
|
|
|
5.38
|
|
||||
Commercial
|
|
592,780
|
|
|
6,814
|
|
|
4.59
|
|
|
663,200
|
|
|
7,090
|
|
|
4.27
|
|
||||
Consumer
|
|
234,178
|
|
|
7,702
|
|
|
13.19
|
|
|
202,914
|
|
|
5,877
|
|
|
11.62
|
|
||||
Total loans
2,3
|
|
4,775,653
|
|
|
54,633
|
|
|
4.57
|
|
|
4,747,156
|
|
|
52,317
|
|
|
4.40
|
|
||||
Total interest-earning assets
2
|
|
6,340,782
|
|
|
63,294
|
|
|
3.99
|
|
|
6,088,794
|
|
|
59,136
|
|
|
3.88
|
|
||||
Allowance for loan losses
|
|
(54,191
|
)
|
|
|
|
|
|
|
|
(56,715
|
)
|
|
|
|
|
|
|
||||
Non-interest-earning assets
|
|
590,493
|
|
|
|
|
|
|
|
|
534,581
|
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
6,877,084
|
|
|
|
|
|
|
|
|
$
|
6,566,660
|
|
|
|
|
|
|
|
||
Liabilities and shareholder’s equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Savings
|
|
$
|
2,343,928
|
|
|
$
|
411
|
|
|
0.07
|
|
|
$
|
2,274,832
|
|
|
$
|
386
|
|
|
0.07
|
|
Interest-bearing checking
|
|
1,030,309
|
|
|
208
|
|
|
0.08
|
|
|
908,864
|
|
|
59
|
|
|
0.03
|
|
||||
Money market
|
|
125,961
|
|
|
73
|
|
|
0.23
|
|
|
146,962
|
|
|
45
|
|
|
0.12
|
|
||||
Time certificates
|
|
766,148
|
|
|
2,592
|
|
|
1.36
|
|
|
679,866
|
|
|
1,821
|
|
|
1.07
|
|
||||
Total interest-bearing deposits
|
|
4,266,346
|
|
|
3,284
|
|
|
0.31
|
|
|
4,010,524
|
|
|
2,311
|
|
|
0.23
|
|
||||
Advances from Federal Home Loan Bank
|
|
52,176
|
|
|
254
|
|
|
1.95
|
|
|
101,335
|
|
|
788
|
|
|
3.08
|
|
||||
Securities sold under agreements to repurchase
|
|
75,687
|
|
|
139
|
|
|
0.74
|
|
|
95,740
|
|
|
36
|
|
|
0.15
|
|
||||
Total interest-bearing liabilities
|
|
4,394,209
|
|
|
3,677
|
|
|
0.34
|
|
|
4,207,599
|
|
|
3,135
|
|
|
0.30
|
|
||||
Non-interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
|
1,772,173
|
|
|
|
|
|
|
|
1,664,592
|
|
|
|
|
|
|
||||||
Other
|
|
103,991
|
|
|
|
|
|
|
|
99,710
|
|
|
|
|
|
|
||||||
Shareholder’s equity
|
|
606,711
|
|
|
|
|
|
|
|
594,759
|
|
|
|
|
|
|
||||||
Total liabilities and shareholder’s equity
|
|
$
|
6,877,084
|
|
|
|
|
|
|
|
$
|
6,566,660
|
|
|
|
|
|
|
||||
Net interest income
|
|
|
|
|
$
|
59,617
|
|
|
|
|
|
|
|
$
|
56,001
|
|
|
|
||||
Net interest margin (%)
4
|
|
|
|
|
|
|
|
3.76
|
|
|
|
|
|
|
|
|
3.68
|
|
|
|
Six months ended June 30
|
||||||||||||||||||||
|
|
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
|
|
$
|
55,078
|
|
|
$
|
456
|
|
|
1.65
|
|
|
$
|
69,421
|
|
|
$
|
307
|
|
|
0.88
|
|
FHLB stock
|
|
10,009
|
|
|
154
|
|
|
3.09
|
|
|
11,498
|
|
|
105
|
|
|
1.85
|
|
||||
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
1,477,468
|
|
|
16,973
|
|
|
2.30
|
|
|
1,206,272
|
|
|
13,130
|
|
|
2.18
|
|
||||
Non-taxable
|
|
15,427
|
|
|
312
|
|
|
4.02
|
|
|
15,427
|
|
|
310
|
|
|
4.00
|
|
||||
Total investment securities
|
|
1,492,895
|
|
|
17,285
|
|
|
2.32
|
|
|
1,221,699
|
|
|
13,440
|
|
|
2.20
|
|
||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential 1-4 family
|
|
2,124,429
|
|
|
43,428
|
|
|
4.09
|
|
|
2,071,931
|
|
|
43,789
|
|
|
4.23
|
|
||||
Commercial real estate
|
|
866,689
|
|
|
19,210
|
|
|
4.42
|
|
|
913,940
|
|
|
19,134
|
|
|
4.18
|
|
||||
Home equity line of credit
|
|
926,951
|
|
|
16,342
|
|
|
3.56
|
|
|
872,973
|
|
|
14,364
|
|
|
3.32
|
|
||||
Residential land
|
|
16,485
|
|
|
446
|
|
|
5.41
|
|
|
17,057
|
|
|
495
|
|
|
5.80
|
|
||||
Commercial
|
|
576,743
|
|
|
12,993
|
|
|
4.53
|
|
|
666,741
|
|
|
14,245
|
|
|
4.30
|
|
||||
Consumer
|
|
232,519
|
|
|
15,014
|
|
|
13.02
|
|
|
195,158
|
|
|
11,032
|
|
|
11.40
|
|
||||
Total loans
2,3
|
|
4,743,816
|
|
|
107,433
|
|
|
4.54
|
|
|
4,737,800
|
|
|
103,059
|
|
|
4.36
|
|
||||
Total interest-earning assets
2
|
|
6,301,798
|
|
|
125,328
|
|
|
3.99
|
|
|
6,040,418
|
|
|
116,911
|
|
|
3.88
|
|
||||
Allowance for loan losses
|
|
(53,881
|
)
|
|
|
|
|
|
|
|
(56,477
|
)
|
|
|
|
|
|
|
||||
Non-interest-earning assets
|
|
582,346
|
|
|
|
|
|
|
|
|
527,302
|
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
6,830,263
|
|
|
|
|
|
|
|
|
$
|
6,511,243
|
|
|
|
|
|
|
|
||
Liabilities and shareholder’s equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Savings
|
|
$
|
2,327,596
|
|
|
$
|
812
|
|
|
0.07
|
|
|
$
|
2,261,549
|
|
|
$
|
760
|
|
|
0.07
|
|
Interest-bearing checking
|
|
982,096
|
|
|
282
|
|
|
0.06
|
|
|
897,346
|
|
|
114
|
|
|
0.03
|
|
||||
Money market
|
|
119,830
|
|
|
99
|
|
|
0.17
|
|
|
151,293
|
|
|
92
|
|
|
0.12
|
|
||||
Time certificates
|
|
779,796
|
|
|
5,048
|
|
|
1.31
|
|
|
670,717
|
|
|
3,448
|
|
|
1.04
|
|
||||
Total interest-bearing deposits
|
|
4,209,318
|
|
|
6,241
|
|
|
0.30
|
|
|
3,980,905
|
|
|
4,414
|
|
|
0.22
|
|
||||
Advances from Federal Home Loan Bank
|
|
51,647
|
|
|
499
|
|
|
1.95
|
|
|
100,671
|
|
|
1,563
|
|
|
3.09
|
|
||||
Securities sold under agreements to repurchase
|
|
114,997
|
|
|
390
|
|
|
0.68
|
|
|
94,713
|
|
|
77
|
|
|
0.16
|
|
||||
Total interest-bearing liabilities
|
|
4,375,962
|
|
|
7,130
|
|
|
0.33
|
|
|
4,176,289
|
|
|
6,054
|
|
|
0.29
|
|
||||
Non-interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
|
1,748,695
|
|
|
|
|
|
|
|
|
1,646,275
|
|
|
|
|
|
|
|
||||
Other
|
|
100,892
|
|
|
|
|
|
|
|
|
98,875
|
|
|
|
|
|
|
|
||||
Shareholder’s equity
|
|
604,714
|
|
|
|
|
|
|
|
|
589,804
|
|
|
|
|
|
|
|
||||
Total liabilities and shareholder’s equity
|
|
$
|
6,830,263
|
|
|
|
|
|
|
|
|
$
|
6,511,243
|
|
|
|
|
|
|
|
||
Net interest income
|
|
|
|
|
$
|
118,198
|
|
|
|
|
|
|
|
|
$
|
110,857
|
|
|
|
|
||
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 $0.06 million for the three months ended
June 30, 2018
and 2017, respectively and $0.07 million and $0.1 million for the six months ended
June 30, 2018
and 2017, respectively.
|
3
|
Includes recognition of net deferred loan fees of $0.1 million and $0.6 million for the three months ended
June 30, 2018
and 2017 and $0.1 million and $1.1 million for the six months ended
June 30, 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.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Outstanding balance of home equity loans (in thousands)
|
|
$
|
938,902
|
|
|
$
|
913,052
|
|
Percent of portfolio in first lien position
|
|
48.4
|
%
|
|
48.0
|
%
|
||
Annualized net charge-off (recovery) ratio
|
|
0.03
|
%
|
|
(0.03
|
)%
|
||
Delinquency ratio
|
|
0.52
|
%
|
|
0.28
|
%
|
|
|
|
|
|
|
End of draw period – interest only
|
|
Current
|
||||||||||||||||
June 30, 2018
|
|
Total
|
|
Interest only
|
|
2018-2019
|
|
2020-2022
|
|
Thereafter
|
|
amortizing
|
||||||||||||
Outstanding balance (in thousands)
|
|
$
|
938,902
|
|
|
$
|
720,008
|
|
|
$
|
39,223
|
|
|
$
|
105,070
|
|
|
$
|
575,715
|
|
|
$
|
218,894
|
|
% of total
|
|
100
|
%
|
|
77
|
%
|
|
4
|
%
|
|
11
|
%
|
|
62
|
%
|
|
23
|
%
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||
(dollars in thousands)
|
|
Balance
|
|
% of total
|
|
Balance
|
|
% of total
|
||||||
U.S. Treasury and federal agency obligations
|
|
$
|
175,933
|
|
|
12
|
%
|
|
$
|
184,298
|
|
|
13
|
%
|
Mortgage-related securities — FNMA, FHLMC and GNMA
|
|
1,240,462
|
|
|
84
|
|
|
1,245,988
|
|
|
86
|
|
||
Corporate bonds
|
|
40,336
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||
Mortgage revenue bond
|
|
15,427
|
|
|
1
|
|
|
15,427
|
|
|
1
|
|
||
Total investment securities
|
|
$
|
1,472,158
|
|
|
100
|
%
|
|
$
|
1,445,713
|
|
|
100
|
%
|
|
|
Six months ended June 30
|
|
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
|
|
6,304
|
|
|
6,741
|
|
|
10,901
|
|
|||
Less: net charge-offs
|
|
7,138
|
|
|
5,918
|
|
|
12,797
|
|
|||
Allowance for loan losses, end of period
|
|
$
|
52,803
|
|
|
$
|
56,356
|
|
|
$
|
53,637
|
|
Ratio of net charge-offs during the period to average loans outstanding (annualized)
|
|
0.30
|
%
|
|
0.25
|
%
|
|
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)
|
|
June 30, 2018
|
|
December 31, 2017
|
|
% change
|
|||||
Total assets
|
|
$
|
6,984
|
|
|
$
|
6,799
|
|
|
3
|
|
Investment securities
|
|
1,416
|
|
|
1,446
|
|
|
(2
|
)
|
||
Loans held for investment, net
|
|
4,722
|
|
|
4,617
|
|
|
2
|
|
||
Deposit liabilities
|
|
6,116
|
|
|
5,891
|
|
|
4
|
|
||
Other bank borrowings
|
|
127
|
|
|
191
|
|
|
(34
|
)
|
Change in interest rates
|
|
Change in NII
(gradual change in interest rates)
|
|
Change in EVE
(instantaneous change in interest rates)
|
||||||||
(basis points)
|
|
June 30, 2018
|
|
December 31, 2017
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
+300
|
|
2.2
|
%
|
|
3.0
|
%
|
|
(8.9
|
)%
|
|
(8.0
|
)%
|
+200
|
|
1.7
|
|
|
2.4
|
|
|
(5.3
|
)
|
|
(4.0
|
)
|
+100
|
|
1.1
|
|
|
1.6
|
|
|
(1.9
|
)
|
|
(0.6
|
)
|
-100
|
|
(2.6
|
)
|
|
(2.7
|
)
|
|
(2.5
|
)
|
|
(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
|
April 1 to 30, 2018
|
|
25,870
|
|
$34.64
|
|
—
|
|
NA
|
May 1 to 31, 2018
|
|
28,287
|
|
$33.91
|
|
—
|
|
NA
|
June 1 to 30, 2018
|
|
198,215
|
|
$33.01
|
|
—
|
|
NA
|
|
|
Six months ended June 30
|
|
Years ended December 31
|
|||||||||||||||||
|
|
2018
|
|
2017
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||
HEI and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding interest on ASB deposits
|
|
3.18
|
|
|
3.31
|
|
|
3.93
|
|
|
5.05
|
|
|
3.68
|
|
|
3.80
|
|
|
3.55
|
|
Including interest on ASB deposits
|
|
2.94
|
|
|
3.11
|
|
|
3.65
|
|
|
4.75
|
|
|
3.54
|
|
|
3.65
|
|
|
3.42
|
|
Hawaiian Electric and Subsidiaries
|
|
2.88
|
|
|
2.90
|
|
|
3.64
|
|
|
4.11
|
|
|
3.97
|
|
|
4.04
|
|
|
3.72
|
|
|
|
|
|
Third Amendment effective July 1, 2018 to Master Trust Agreement (dated September 4, 2012) between HEI and ASB and Fidelity Management Trust Company.
|
|
|
|
|
|
Amended and Restated Severance Pay Plan for Management Employees of Hawaiian Electric Industries, Inc. and Executive Employees of Affiliates, effective as of April 2, 2018.
|
|
|
|
|
|
Hawaiian Electric Industries, Inc. and Subsidiaries
Computation of ratio of earnings to fixed charges, six months ended June 30, 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
|
|
|
|
|
Hawaiian Electric Company, Inc. and Subsidiaries
Computation of ratio of earnings to fixed charges, six months ended June 30, 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: August 3, 2018
|
|
Date: August 3, 2018
|
(1)
|
Amending the definition of “Administrator” in Section 1(a), in its entirety, as follows:
|
(2)
|
Amending Schedule B,
Fee Schedule
, to restate the “Core Fees” section, in its entirety, as follows:
|
Core Fees
|
Fixed Basis Points Fee
|
Annual Administration Fee for Core Services
|
5.5 basis points on total Plan assets determined based upon average quarterly assets, multiplied by one-quarter (1/4), billed and payable quarterly, subject to the offsets listed below.
|
Standard Administrative Forms, Confirmations, and Standard Legal Notices with print or email distribution.
|
Included
|
(3)
|
Amending Schedule B,
Fee Schedule
, to restate the “Live Plan Specific Web Workshop Sessions” and the “Online, On Demand, Plan Specific Recordings using Brainshark Technology” sections, in their entirety, as follows:
|
Live Plan Specific Web Workshop Sessions
Note: Subject to the cancellation and minimum attendance policy.
|
$200 per session
|
Online, On Demand, Plan Specific Recordings using Brainshark Technology
|
$200 each
- Unlimited viewings
|
(4)
|
Amending Schedule B,
Fee Schedule
, to restate the “Offsets” section, in its entirety, as follows:
|
(a)
|
Actively managed (non-Class K) Fidelity equity Mutual Funds: 35 basis points per annum;
|
(b)
|
Actively managed (non-Class K) Fidelity Freedom
®
Funds: 35 basis points per annum;
|
(c)
|
Actively managed (Class K) Fidelity equity Mutual Funds: 20 basis points per annum;
|
(f)
|
Actively managed Fidelity fixed income and money market Mutual Funds, except for certain Fidelity institutional money market Mutual Funds (e.g. FIMM Funds): 20 basis points per annum;
|
(g)
|
Actively managed Fidelity Institutional Asset Management (FIAM) Service Series commingled pools: 10 basis points per annum;
|
B.
|
Offsets attributable to Non-Fidelity investment products:
|
(5)
|
Amending Schedule B,
Fee Schedule
, to restate the “Revenue Credit” section, in its entirety, as follows:
|
A.
|
Commencement
. Commencing with the quarter beginning July 1, 2018, the Trustee shall calculate Revenue Credits on a quarterly basis, and the Trustee shall commence paying Revenue Credits as set forth in the Section titled “Funding” below.
|
B.
|
Funding
. The Trustee shall pay quarterly in arrears the calculated Revenue Credit for such quarter as soon as administratively feasible (generally within 15 Business Days) after a quarterly invoice reflecting such Revenue Credit has been issued and sent. In the event an invoice is issued and sent with respect to a portion of a quarter, the amount of the Revenue Credit for such quarter shall be pro rated accordingly.
|
C.
|
Investment
. Deposits in the Revenue Credit Account will be invested in the first available source in the Plan’s source hierarchy, which can be viewed on Fidelity Plan Sponsor Webstation
®
. (Please note that the source used will not impact testing and reporting.) The Revenue Credit Account shall be invested in the fund specified for such purpose on Schedule C.
|
D.
|
Application of Account to Pay Expenses
. The Administrator or Named Fiduciary may direct the Trustee through the Trustee’s internet application for Sponsors to use amounts held in the Revenue Credit Account to reimburse the Sponsor for
|
(a)
|
General
. Effective July 1, 2018, the Administrator or Named Fiduciary may direct the Trustee to allocate amounts in the Revenue Credit Account to Eligible Participant accounts, provided that any such direction may be provided no more frequently than once per calendar quarter, unless such direction is with respect to a final allocation to be made in the last month of the plan year. Directions shall be submitted through a service request through the Trustee’s internet application for Sponsors and shall include the dollar amount to be allocated from the Revenue Credit Account, provided that if such amount exceeds the balance held in the Revenue Credit Account on the date on which the allocation is to be performed (the “Crediting Date”), such amount shall be deemed to be the total balance of the Revenue Credit Account on the Crediting Date. The applicable Crediting Date shall occur as soon as administratively feasible (and in no event later than 15 calendar days) following receipt of a direction In Good Order.
|
(b)
|
Method of Allocation
.
The dollar amount directed to be allocated from the Revenue Credit Account shall be divided among Eligible Participant accounts pro rata based on Eligible Participant account balances, exclusive of outstanding loan balances.
|
(c)
|
Eligible Participants
. Solely for purposes of allocations pursuant to this section, “Eligible Participant” means any Participant or beneficiary with a balance greater than zero.
|
(d)
|
Investment of Allocations
.
Amounts allocated to Eligible Participant accounts from the Revenue Credit Account shall be invested in accordance with Eligible Participants’ elections for future contributions, or if no such election is on file, in the Plan’s designated default investment pro rata across existing sources.
|
(e)
|
Directions
.
A direction from the Administrator or Named Fiduciary to allocate amounts to participant accounts shall constitute a representation to the Trustee that the Administrator or Named Fiduciary, as appropriate, has concluded that the allocations are permissible under the Plan and meet the requirements of applicable laws, including ERISA and the Code. Without limiting the foregoing, the Administrator or Named Fiduciary, as appropriate, directs that allocations of amounts from the Revenue Credit Account to Eligible Participants’ Accounts shall not be included as contributions or annual additions for any testing or reporting purposes. The Trustee shall be responsible for implementing the directions of the Administrator or Named Fiduciary, as appropriate, but subject to its responsibilities under ERISA has no responsibility for the legality or appropriateness of such directions. The Administrator or Named Fiduciary may alter its directions at any time with reasonable advance notice and after consultation concerning the administrative feasibility of alternative directions.
|
F.
|
12b-1 Payments
. To the extent any Revenue Credits are deemed to be attributable to investments in Fidelity Mutual Funds that have adopted a plan pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“1940 Act”) at the time such Revenue Credits are made, such Revenue Credits shall be made available pursuant to such plan (“12b-1 Payments”), and the following conditions shall apply:
|
(a)
|
The obligation to make 12b-1 Payments shall continue in effect for one year from the Effective Date of this amendment, and shall continue for successive annual periods only upon at least annual approval by a vote of the majority of the trustees for each of those Fidelity Mutual Funds that have adopted such plans, including a majority of those trustees that are not “interested persons” (as defined in the 1940 Act) of such Mutual Funds and who have no direct or indirect financial interest in the operation of the plan or any agreement related thereto (“Qualified Trustees”).
|
(b)
|
Notwithstanding any provision hereof to the contrary, the obligation to make these 12b-1 Payments with respect to any plan may be terminated without penalty at any time, upon either a vote of a majority of the Qualified Trustees, or upon a vote of a majority of the outstanding voting securities (as defined in the 1940 Act) of the applicable Fidelity Mutual Fund to terminate or not continue the plan for the applicable Fidelity Mutual Fund.
|
(c)
|
Upon assignment of this Agreement (as defined under the 1940 Act), the obligation to make 12b-1 Payments shall automatically terminate.
|
(6)
|
Deleting Schedule B-1,
Procedures Governing Revenue Credit Account
, in its entirety.
|
HAWAIIAN ELECTRIC INDUSTRIES, INC.
|
FIDELITY MANAGEMENT TRUST
|
||
AND AMERICAN SAVINGS BANK, F.S.B
|
COMPANY
|
|
|
BY: HAWAIIAN ELECTRIC INDUSTRIES,
|
|
|
|
INC. PENSION INVESTMENT COMMITTEE
|
|
|
|
|
|
|
|
By:
/s/ Kurt Murao
|
6/21/2018
|
By:
/s/ Mary Beth Paris
|
6/26/2018
|
Authorized Signatory
|
Date
|
FMTC Authorized Signatory
|
Date
|
Name: Kurt Murao
|
|
|
|
Title: Secretary
|
|
|
|
|
|
|
|
By:
/s/ Greg C. Hazelton
|
06/21/2018
|
|
|
Authorized Signatory
|
Date
|
|
|
Name: Greg C. Hazelton
|
|
|
|
Title: EVP and Chief Financial Officer
|
|
|
|
Plan Name:
|
Severance Pay Plan for Management Employees of Hawaiian Electric Industries, Inc., and Executive Employees of Affiliates
|
Plan Sponsor:
|
Hawaiian Electric Industries, Inc. (“HEI”)
900 Richards Street
Honolulu, Hawaii 96813
|
Employer Identification Number:
|
99-0208097
|
Plan Number:
|
517
|
Plan Administrator:
|
Hawaiian Electric Industries, Inc.
c/o Director of Benefits
Hawaiian Electric Company, Inc. (“HECO”)
220 S. King Street, Suite 1700
Honolulu, HI 96813
(808) 543-4677
|
Participating Companies:
|
Participating companies include:
Hawaiian Electric Industries, Inc.
Hawaiian Electric Company, Inc.
Hawaii Electric Light Company, Inc. (“HELCO”)
Maui Electric Company, Ltd. (“MECO”)
|
Agent for Service of Legal Process:
|
Service of process may be made upon the Plan Administrator at the above address.
|
Type of Plan:
|
This plan is an unfunded welfare benefits plan providing severance pay to eligible management employees upon a qualifying severance of employment.
|
Type of Administration:
|
This plan is employer administered.
|
Plan Year:
|
January 1 through December 31
|
Contact Information:
|
For further information, employees should contact Human Resources at their respective companies:
HEI / HECO- HR Service Center at 543-4848
HELCO - Human Resources Dept. at 969-0281
MECO - Human Resources Dept. at 871-2389
|
1.
|
What is this document?
|
2.
|
Who are the “Employers”?
|
3.
|
Who is eligible to participate in this Plan?
|
4.
|
Who is entitled to receive benefits under this Plan?
|
5.
|
What is a Qualifying Termination?
|
6.
|
What are some examples of Terminations which are NOT Qualifying Terminations?
|
(1)
|
An Eligible Employee’s voluntary resignation;
|
(2)
|
An Eligible Employee’s termination for cause;
1
|
(3)
|
An Eligible Employee’s termination on account of his or her death, disability, or retirement;
|
(4)
|
An Eligible Employee’s change of status from a Regular Management Employee of HEI to that of an independent contractor, a Bargaining Unit employee, or other non-Regular Management Employee;
|
(5)
|
An Eligible Employee’s change of status from Executive to non-Executive at HECO, HELCO, or MECO;
|
(6)
|
A non-Eligible Employee’s termination for any reason;
|
(7)
|
An Eligible Employee’s transfer from one entity to another within the group of HEI and its affiliates, whether such transfer is voluntary or involuntary, unless the transfer is an inter-island transfer and such employee determines to resign instead of accepting such inter-island transfer;
|
(8)
|
An Employer’s being succeeded by another company, in whole or in part, whether through purchase, merger, reorganization, or other transaction; such as stock sale or an asset sale and
|
(9)
|
Any combination of non-Qualifying Terminations.
|
1
|
A “termination for cause” is an Employee's discharge on account of any act or omission by the Employee which violates or fails to meet the standards of job performance applicable to the Employee’s position or the Employer’s Code of Conduct, employee handbook or employment rules or policies or violates the Employee’s contract, and the sanction for which may be discharge for cause.
|
7.
|
Suppose that I have a Qualifying Termination. Is there anything that I must do in order to receive benefits under this Plan?
|
8.
|
What is the deadline for returning the Separation Agreement?
|
9.
|
What is the Separation Agreement?
|
10.
|
What are my Severance Benefits?
|
11.
|
What is my Severance Pay?
|
12.
|
What is my “final basic rate of pay”?
|
13.
|
How many Weeks of Severance Pay am I entitled to?
|
14.
|
What is a “break in service”?
|
15.
|
Suppose I go on active military duty. Will my military service be treated as continuous with my Employer?
|
16.
|
What is the Health Benefits Payment?
|
17.
|
When will I receive my Severance Benefits?
|
18.
|
Are there circumstances under which I might be required to repay my Severance Benefits?
|
19.
|
Is the Plan funded?
|
20.
|
Can the Plan be amended or terminated?
|
21.
|
Can I lose, forfeit, or become ineligible for Benefits?
|
22.
|
What are the claims procedures for the Plan?
|
23.
|
How is the Plan administered
?
|
24.
|
Does the Plan entitle me to remain employed by my Employer?
|
25.
|
May I assign (transfer) my benefits under this Plan?
|
26.
|
What if I become disabled or die while entitled to benefits?
|
27.
|
Do my benefits under this Plan include any consideration for taxes?
|
28.
|
Do I have to make contributions to the Plan?
|
29.
|
Will I still be entitled to unemployment compensation?
|
30.
|
Does the Plan provide for deferred compensation within the meaning of Section 409A of the Internal Revenue Code?
|
31.
|
What are your rights as a participant in the Plan under the Employee Retirement Income Security Act of 1974? (Statement of ERISA Rights)
|
|
HAWAIIAN ELECTRIC INDUSTRIES, INC.
|
|
|
|
|
|
|
|
|
|
By:
/s/ Kurt Murao
|
|
|
Title:
VP - Legal & Administration and
|
|
|
Corporate Secretary
|
|
|
|
|
|
Date: July 23, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT A
|
|
|||
|
|
|
|
|
|
|
SEVERANCE PAY TABLE
|
|
|||
|
|
|
|
|
|
Years of Service
|
# of Severance Weeks
|
|
Years of Service
|
# of Severance Weeks
|
|
0
|
4
|
|
26
|
37
|
|
1
|
4
|
|
27
|
39
|
|
2
|
6
|
|
28
|
41
|
|
3
|
6
|
|
29
|
43
|
|
4
|
6
|
|
30
|
45
|
|
5
|
6
|
|
31
|
47
|
|
6
|
7
|
|
32
|
49
|
|
7
|
8
|
|
33
|
51
|
|
8
|
9
|
|
34
|
52
|
|
9
|
10
|
|
35
|
52
|
|
10
|
11
|
|
36
|
52
|
|
11
|
12
|
|
37
|
52
|
|
12
|
13
|
|
38
|
52
|
|
13
|
14
|
|
39
|
52
|
|
14
|
15
|
|
40
|
52
|
|
15
|
16
|
|
41
|
52
|
|
16
|
17
|
|
42
|
52
|
|
17
|
19
|
|
43
|
52
|
|
18
|
21
|
|
44
|
52
|
|
19
|
23
|
|
45
|
52
|
|
20
|
25
|
|
46
|
52
|
|
21
|
27
|
|
47
|
52
|
|
22
|
29
|
|
48
|
52
|
|
23
|
31
|
|
49
|
52
|
|
24
|
33
|
|
50
|
52
|
|
25
|
35
|
|
|
|
Six months ended June 30
|
|
2018 (1)
|
|
2018 (2)
|
|
2017 (1)
|
|
2017 (2)
|
||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total interest charges
|
|
$
|
44,907
|
|
|
$
|
51,148
|
|
|
$
|
41,939
|
|
|
$
|
46,353
|
|
Interest component of rentals
|
|
3,658
|
|
|
3,658
|
|
|
3,263
|
|
|
3,263
|
|
||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
1,224
|
|
|
1,224
|
|
|
1,426
|
|
|
1,426
|
|
||||
Total fixed charges
|
|
$
|
49,789
|
|
|
$
|
56,030
|
|
|
$
|
46,628
|
|
|
$
|
51,042
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax income from continuing operations
|
|
$
|
111,912
|
|
|
$
|
111,912
|
|
|
$
|
110,262
|
|
|
$
|
110,262
|
|
Fixed charges, as shown
|
|
49,789
|
|
|
56,030
|
|
|
46,628
|
|
|
51,042
|
|
||||
Interest capitalized
|
|
(3,308
|
)
|
|
(3,308
|
)
|
|
(2,323
|
)
|
|
(2,323
|
)
|
||||
Earnings available for fixed charges
|
|
$
|
158,393
|
|
|
$
|
164,634
|
|
|
$
|
154,567
|
|
|
$
|
158,981
|
|
Ratio of earnings to fixed charges
|
|
3.18
|
|
|
2.94
|
|
|
3.31
|
|
|
3.11
|
|
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.
|
|
|
Six months ended June 30
|
|
Years ended December 31
|
||||||||||||||||||||||||
(dollars in thousands)
|
|
2018
|
|
2017
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total interest charges
|
|
$
|
36,353
|
|
|
$
|
36,010
|
|
|
$
|
70,234
|
|
|
$
|
67,407
|
|
|
$
|
67,178
|
|
|
$
|
66,132
|
|
|
$
|
64,130
|
|
Interest component of rentals
|
|
2,185
|
|
|
1,752
|
|
|
3,618
|
|
|
3,249
|
|
|
3,060
|
|
|
3,244
|
|
|
2,793
|
|
|||||||
Pretax preferred stock dividend requirements of subsidiaries
|
|
594
|
|
|
720
|
|
|
1,539
|
|
|
1,453
|
|
|
1,443
|
|
|
1,444
|
|
|
1,421
|
|
|||||||
Total fixed charges
|
|
$
|
39,132
|
|
|
$
|
38,482
|
|
|
$
|
75,391
|
|
|
$
|
72,109
|
|
|
$
|
71,681
|
|
|
$
|
70,820
|
|
|
$
|
68,344
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income attributable to Hawaiian Electric
|
|
$
|
59,184
|
|
|
$
|
47,649
|
|
|
$
|
121,031
|
|
|
$
|
143,397
|
|
|
$
|
136,794
|
|
|
$
|
138,721
|
|
|
$
|
124,009
|
|
Fixed charges, as shown
|
|
39,132
|
|
|
38,482
|
|
|
75,391
|
|
|
72,109
|
|
|
71,681
|
|
|
70,820
|
|
|
68,344
|
|
|||||||
Income taxes
|
|
17,851
|
|
|
27,618
|
|
|
83,199
|
|
|
84,801
|
|
|
79,422
|
|
|
80,725
|
|
|
69,117
|
|
|||||||
Interest capitalized
|
|
(3,308
|
)
|
|
(2,323
|
)
|
|
(5,375
|
)
|
|
(3,727
|
)
|
|
(3,265
|
)
|
|
(3,954
|
)
|
|
(7,097
|
)
|
|||||||
Earnings available for fixed charges
|
|
$
|
112,859
|
|
|
$
|
111,426
|
|
|
$
|
274,246
|
|
|
$
|
296,580
|
|
|
$
|
284,632
|
|
|
$
|
286,312
|
|
|
$
|
254,373
|
|
Ratio of earnings to fixed charges
|
|
2.88
|
|
|
2.90
|
|
|
3.64
|
|
|
4.11
|
|
|
3.97
|
|
|
4.04
|
|
|
3.72
|
|
Date: August 3, 2018
|
|
|
/s/ Constance H. Lau
|
|
Constance H. Lau
|
|
President and Chief Executive Officer
|
Date: August 3, 2018
|
|
|
/s/ Gregory C. Hazelton
|
|
Gregory C. Hazelton
|
|
Executive Vice President and Chief Financial Officer
|
Date: August 3, 2018
|
|
|
/s/ Alan M. Oshima
|
|
Alan M. Oshima
|
|
President and Chief Executive Officer
|
Date: August 3, 2018
|
|
|
/s/ Tayne S. Y. Sekimura
|
|
Tayne S. Y. Sekimura
|
|
Senior Vice President and Chief Financial Officer
|
Date: August 3, 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: August 3, 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
|