Exact Name of Registrant as Specified in Its Charter
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Commission File Number
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I.R.S. Employer 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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Hawaiian Electric Company, Inc.:
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Large accelerated filer x
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(Do not check if a smaller reporting company)
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Large accelerated filer o
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(Do not check if a smaller reporting company)
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Accelerated filer o
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Smaller reporting company o
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Accelerated filer o
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Smaller reporting company o
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Non-accelerated filer o
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Emerging growth company o
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Non-accelerated filer x
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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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Registrant
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Hawaiian Electric Industries, Inc.
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Common Stock, Without Par Value
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HE
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New York Stock Exchange
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Hawaiian Electric Company, Inc.
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Guarantee with respect to 6.50% Cumulative Quarterly Income Preferred Securities Series 2004 (QUIPSSM) of HECO Capital Trust III
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HE PRU
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New York Stock Exchange
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Class of Common Stock
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Outstanding April 30, 2019
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Hawaiian Electric Industries, Inc. (Without Par Value)
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108,936,912 Shares
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Hawaiian Electric Company, Inc. ($6-2/3 Par Value)
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16,751,488 Shares (not publicly traded)
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Terms
|
|
Definitions
|
ADIT
|
|
Accumulated deferred income tax balances
|
AES Hawaii
|
|
AES Hawaii, Inc.
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AFUDC
|
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Allowance for funds used during construction
|
AOCI
|
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Accumulated other comprehensive income/(loss)
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ASB
|
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American Savings Bank, F.S.B., a wholly-owned subsidiary of ASB Hawaii, Inc.
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ASB Hawaii
|
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ASB Hawaii, Inc. (formerly American Savings Holdings, Inc.), a wholly owned subsidiary of Hawaiian Electric Industries, Inc. and the parent company of American Savings Bank, F.S.B.
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ASC
|
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Accounting Standards Codification
|
ASU
|
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Accounting Standards Update
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CBRE
|
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Community-based renewable energy
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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
|
|
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); and The Old Oahu Tug Service, Inc. (formerly Hawaiian Tug & Barge Corp.)
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Consumer Advocate
|
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Division of Consumer Advocacy, Department of Commerce and Consumer Affairs of the State of Hawaii
|
DER
|
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Distributed energy resources
|
D&O
|
|
Decision and order from the PUC
|
Dodd-Frank Act
|
|
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
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DOH
|
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Department of Health of the State of Hawaii
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DRIP
|
|
HEI Dividend Reinvestment and Stock Purchase Plan
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ECAC
|
|
Energy cost adjustment clause
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ECRC
|
|
Energy cost recovery clause
|
EIP
|
|
2010 Equity and Incentive Plan, as amended and restated
|
EPA
|
|
Environmental Protection Agency — federal
|
EPS
|
|
Earnings per share
|
ERP/EAM
|
|
Enterprise Resource Planning/Enterprise Asset Management
|
EVE
|
|
Economic value of equity
|
Exchange Act
|
|
Securities Exchange Act of 1934
|
FASB
|
|
Financial Accounting Standards Board
|
FDIC
|
|
Federal Deposit Insurance Corporation
|
federal
|
|
U.S. Government
|
FHLB
|
|
Federal Home Loan Bank
|
FHLMC
|
|
Federal Home Loan Mortgage Corporation
|
FNMA
|
|
Federal National Mortgage Association
|
FRB
|
|
Federal Reserve Board
|
GAAP
|
|
Accounting principles generally accepted in the United States of America
|
GNMA
|
|
Government National Mortgage Association
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Hawaii Electric Light
|
|
Hawaii Electric Light Company, Inc., an electric utility subsidiary of Hawaiian Electric Company, Inc.
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Terms
|
|
Definitions
|
Hawaiian Electric
|
|
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
|
|
Hamakua Energy, LLC, an indirect subsidiary of HEI and successor in interest to Hamakua Energy Partners, L.P., an affiliate of Arclight Capital Partners (a Boston-based private equity firm focused on energy infrastructure investments) and successor in interest to Encogen Hawaii, L.P.
|
HEI
|
|
Hawaiian Electric Industries, Inc., direct parent company of Hawaiian Electric Company, Inc., ASB Hawaii, Inc., Pacific Current, LLC and The Old Oahu Tug Service, Inc. (formerly Hawaiian Tug & Barge Corp.)
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HEIRSP
|
|
Hawaiian Electric Industries Retirement Savings Plan
|
HELOC
|
|
Home equity line of credit
|
HPOWER
|
|
City and County of Honolulu with respect to a power purchase agreement for a refuse-fired plant
|
IPP
|
|
Independent power producer
|
Kalaeloa
|
|
Kalaeloa Partners, L.P.
|
kWh
|
|
Kilowatthour/s (as applicable)
|
LTIP
|
|
Long-term incentive plan
|
Maui Electric
|
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Maui Electric Company, Limited, an electric utility subsidiary of Hawaiian Electric Company, Inc.
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Mauo
|
|
Mauo, LLC, an indirect subsidiary of HEI
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MPIR
|
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Major Project Interim Recovery
|
MSR
|
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Mortgage servicing right
|
MW
|
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Megawatt/s (as applicable)
|
NEM
|
|
Net energy metering
|
NII
|
|
Net interest income
|
NPBC
|
|
Net periodic benefit costs
|
NPPC
|
|
Net periodic pension costs
|
O&M
|
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Other operation and maintenance
|
OCC
|
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Office of the Comptroller of the Currency
|
OPEB
|
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Postretirement benefits other than pensions
|
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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PBR
|
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Performance-based regulation
|
PIMs
|
|
Performance incentive mechanisms
|
PPA
|
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Power purchase agreement
|
PPAC
|
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Purchased power adjustment clause
|
PSIPs
|
|
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
|
RAM
|
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Rate adjustment mechanism
|
RBA
|
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Revenue balancing account
|
RFP
|
|
Request for proposals
|
ROACE
|
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Return on average common equity
|
RORB
|
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Return on rate base
|
RPS
|
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Renewable portfolio standards
|
SEC
|
|
Securities and Exchange Commission
|
See
|
|
Means the referenced material is incorporated by reference
|
Tax Act
|
|
2017 Tax Cuts and Jobs Act (H.R. 1, An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018)
|
TDR
|
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Troubled debt restructuring
|
Trust III
|
|
HECO Capital Trust III
|
Utilities
|
|
Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited
|
VIE
|
|
Variable interest entity
|
•
|
international, national and local economic and political conditions—including the state of the Hawaii tourism, defense and construction industries; the strength or weakness of the Hawaii and continental U.S. real estate markets (including the fair value and/or the actual performance of collateral underlying loans held by ASB, which could result in higher loan loss provisions and write-offs); decisions concerning the extent of the presence of the federal government and military in Hawaii; the implications and potential impacts of future Federal government shutdowns, including the impact to our customers to pay their electric bills and/or bank loans and the impact on the state of Hawaii economy; 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; conflicts or other crisis; the effects of changes that have or may occur in U.S. policy, such as with respect to immigration and trade; terrorist acts; and potential pandemics);
|
•
|
the effects of future actions or inaction of the U.S. government or related agencies, including those related to the U.S. debt ceiling or budget funding, monetary policy, trade policy and tariffs, and other policy and regulatory changes advanced or proposed by President Trump and his administration;
|
•
|
weather, natural disasters (e.g., hurricanes, earthquakes, tsunamis, lightning strikes, lava flows and the potential effects of climate change, such as more severe storms, droughts, heat waves, and rising sea levels) and wildfires, including their impact on the Company’s and Utilities’ operations and the economy;
|
•
|
the timing, speed and extent of changes in interest rates and the shape of the yield curve;
|
•
|
the ability of the Company and the Utilities to access the credit and capital markets (e.g., to obtain commercial paper and other short-term and long-term debt financing, including lines of credit, and, in the case of HEI, to issue common stock) under volatile and challenging market conditions, and the cost of such financings, if available;
|
•
|
the risks inherent in changes in the value of the Company’s pension and other retirement plan assets and ASB’s securities available for sale;
|
•
|
changes in laws, regulations (including tax regulations), market conditions and other factors that result in changes in assumptions used to calculate retirement benefits costs and funding requirements;
|
•
|
the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) and of the rules and regulations that the Dodd-Frank Act requires to be promulgated, as amended by the Economic Growth, Regulatory Relief and Consumer Protection Act;
|
•
|
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 (DG), combined heat and power or other firm capacity supply-side resources fall short of achieving their forecasted benefits or are otherwise insufficient to reduce or meet peak demand;
|
•
|
fuel oil price changes, delivery of adequate fuel by suppliers and the continued availability to the electric utilities of their energy cost adjustment clauses (ECACs) and energy cost recovery clauses (ECRC);
|
•
|
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 goals currently in place;
|
•
|
the impact from the PUC’s implementation of performance-based ratemaking for the Utilities pursuant to Act 005, Session Laws 2018, including the potential addition of new performance incentive mechanisms, third party proposals adopted by the PUC in its implementation of performance-based regulation (PBR), and the implications of not achieving performance incentive goals;
|
•
|
the impact of fuel price levels and 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 used, to the extent not prevented by intrusion detection and prevention systems, anti-virus software, firewalls and other general IT controls;
|
•
|
failure in addressing issues in the stabilization of the Enterprise Resource Planning/Enterprise Asset Management (ERP/EAM) system implementation could adversely affect the Utilities’ ability to timely and accurately report financial information and make payments to vendors and employees;
|
•
|
failure to achieve cost savings consistent with the minimum $244 million in ERP/EAM project-related benefits (including $141 million in operation and maintenance (O&M) benefits) to be delivered to customers over its 12-year estimated useful life;
|
•
|
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, 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;
|
•
|
downgrades by securities rating agencies in their ratings of the securities of HEI and Hawaiian Electric and their impact on 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 and/or mix 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 (Pacific Current), 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).
|
Period*
|
|
Total Number of Shares Purchased **
|
|
Average
Price Paid
per Share **
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
|
January 1 to 31, 2019
|
|
21,089
|
|
$36.27
|
|
—
|
|
NA
|
February 1 to 28, 2019
|
|
14,965
|
|
$37.94
|
|
—
|
|
NA
|
March 1 to 31, 2019
|
|
162,768
|
|
$39.97
|
|
—
|
|
NA
|
|
|
Three months ended March 31
|
||||||
(in thousands, except per share amounts)
|
|
2019
|
|
2018
|
||||
Revenues
|
|
|
|
|
|
|
||
Electric utility
|
|
$
|
578,495
|
|
|
$
|
570,427
|
|
Bank
|
|
83,052
|
|
|
75,419
|
|
||
Other
|
|
68
|
|
|
28
|
|
||
Total revenues
|
|
661,615
|
|
|
645,874
|
|
||
Expenses
|
|
|
|
|
|
|
||
Electric utility
|
|
521,935
|
|
|
519,058
|
|
||
Bank
|
|
56,930
|
|
|
50,532
|
|
||
Other
|
|
4,813
|
|
|
4,395
|
|
||
Total expenses
|
|
583,678
|
|
|
573,985
|
|
||
Operating income (loss)
|
|
|
|
|
|
|
||
Electric utility
|
|
56,560
|
|
|
51,369
|
|
||
Bank
|
|
26,122
|
|
|
24,887
|
|
||
Other
|
|
(4,745
|
)
|
|
(4,367
|
)
|
||
Total operating income
|
|
77,937
|
|
|
71,889
|
|
||
Retirement defined benefits expense—other than service costs
|
|
(763
|
)
|
|
(1,833
|
)
|
||
Interest expense, net—other than on deposit liabilities and other bank borrowings
|
|
(23,123
|
)
|
|
(21,518
|
)
|
||
Allowance for borrowed funds used during construction
|
|
1,078
|
|
|
1,444
|
|
||
Allowance for equity funds used during construction
|
|
2,910
|
|
|
3,294
|
|
||
Income before income taxes
|
|
58,039
|
|
|
53,276
|
|
||
Income taxes
|
|
11,878
|
|
|
12,556
|
|
||
Net income
|
|
46,161
|
|
|
40,720
|
|
||
Preferred stock dividends of subsidiaries
|
|
473
|
|
|
473
|
|
||
Net income for common stock
|
|
$
|
45,688
|
|
|
$
|
40,247
|
|
Basic earnings per common share
|
|
$
|
0.42
|
|
|
$
|
0.37
|
|
Diluted earnings per common share
|
|
$
|
0.42
|
|
|
$
|
0.37
|
|
Weighted-average number of common shares outstanding
|
|
108,913
|
|
|
108,818
|
|
||
Net effect of potentially dilutive shares
|
|
355
|
|
|
206
|
|
||
Weighted-average shares assuming dilution
|
|
109,268
|
|
|
109,024
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Net income for common stock
|
|
$
|
45,688
|
|
|
$
|
40,247
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
||
Net unrealized gains (losses) on available-for-sale investment securities:
|
|
|
|
|
|
|
||
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, net of (taxes) benefits of $(3,455) and $4,867, respectively
|
|
9,439
|
|
|
(13,297
|
)
|
||
Derivatives qualifying as cash flow hedges:
|
|
|
|
|
|
|
||
Unrealized interest rate hedging losses arising during the period, net of tax benefits of $140 and nil, respectively
|
|
(403
|
)
|
|
—
|
|
||
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 $870 and $1,792, respectively
|
|
2,503
|
|
|
5,146
|
|
||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $797 and $1,603, respectively
|
|
(2,298
|
)
|
|
(4,622
|
)
|
||
Other comprehensive income (loss), net of taxes
|
|
9,241
|
|
|
(12,773
|
)
|
||
Comprehensive income attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
54,929
|
|
|
$
|
27,474
|
|
(dollars in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
186,407
|
|
|
$
|
169,208
|
|
Accounts receivable and unbilled revenues, net
|
|
265,440
|
|
|
325,672
|
|
||
Available-for-sale investment securities, at fair value
|
|
1,348,263
|
|
|
1,388,533
|
|
||
Held-to-maturity investment securities, at amortized cost
|
|
140,203
|
|
|
141,875
|
|
||
Stock in Federal Home Loan Bank, at cost
|
|
9,434
|
|
|
9,958
|
|
||
Loans held for investment, net
|
|
4,803,883
|
|
|
4,790,902
|
|
||
Loans held for sale, at lower of cost or fair value
|
|
8,136
|
|
|
1,805
|
|
||
Property, plant and equipment, net of accumulated depreciation of $2,685,983 and $2,659,230 at March 31, 2019 and December 31, 2018, respectively
|
|
4,867,127
|
|
|
4,830,118
|
|
||
Operating lease right-of-use assets
|
|
241,486
|
|
|
—
|
|
||
Regulatory assets
|
|
826,186
|
|
|
833,426
|
|
||
Other
|
|
581,350
|
|
|
530,364
|
|
||
Goodwill
|
|
82,190
|
|
|
82,190
|
|
||
Total assets
|
|
$
|
13,360,105
|
|
|
$
|
13,104,051
|
|
Liabilities and shareholders’ equity
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
195,538
|
|
|
$
|
214,773
|
|
Interest and dividends payable
|
|
33,711
|
|
|
28,254
|
|
||
Deposit liabilities
|
|
6,205,659
|
|
|
6,158,852
|
|
||
Short-term borrowings—other than bank
|
|
110,399
|
|
|
73,992
|
|
||
Other bank borrowings
|
|
89,870
|
|
|
110,040
|
|
||
Long-term debt, net—other than bank
|
|
1,880,339
|
|
|
1,879,641
|
|
||
Deferred income taxes
|
|
375,330
|
|
|
372,518
|
|
||
Operating lease liabilities
|
|
241,340
|
|
|
—
|
|
||
Regulatory liabilities
|
|
953,219
|
|
|
950,236
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
538,100
|
|
|
538,384
|
|
||
Other
|
|
518,792
|
|
|
580,788
|
|
||
Total liabilities
|
|
11,142,297
|
|
|
10,907,478
|
|
||
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: 108,936,912 shares and 108,879,245 shares at March 31, 2019 and December 31, 2018, respectively
|
|
1,670,433
|
|
|
1,669,267
|
|
||
Retained earnings
|
|
554,451
|
|
|
543,623
|
|
||
Accumulated other comprehensive loss, net of tax benefits
|
|
(41,369
|
)
|
|
(50,610
|
)
|
||
Total shareholders’ equity
|
|
2,183,515
|
|
|
2,162,280
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
13,360,105
|
|
|
$
|
13,104,051
|
|
|
|
Common stock
|
|
Retained
|
|
Accumulated
other
comprehensive
|
|
|
|||||||||||
(in thousands)
|
|
Shares
|
|
Amount
|
|
Earnings
|
|
income (loss)
|
|
Total
|
|||||||||
Balance, December 31, 2018
|
|
108,879
|
|
|
$
|
1,669,267
|
|
|
$
|
543,623
|
|
|
$
|
(50,610
|
)
|
|
$
|
2,162,280
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
45,688
|
|
|
—
|
|
|
45,688
|
|
||||
Other comprehensive loss, net of tax benefits
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,241
|
|
|
9,241
|
|
||||
Share-based expenses and other, net
|
|
58
|
|
|
1,166
|
|
|
—
|
|
|
—
|
|
|
1,166
|
|
||||
Common stock dividends (32¢ per share)
|
|
—
|
|
|
—
|
|
|
(34,860
|
)
|
|
—
|
|
|
(34,860
|
)
|
||||
Balance, March 31, 2019
|
|
108,937
|
|
|
$
|
1,670,433
|
|
|
$
|
554,451
|
|
|
$
|
(41,369
|
)
|
|
$
|
2,183,515
|
|
Balance, December 31, 2017
|
|
108,788
|
|
|
$
|
1,662,491
|
|
|
$
|
476,836
|
|
|
$
|
(41,941
|
)
|
|
$
|
2,097,386
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
40,247
|
|
|
—
|
|
|
40,247
|
|
||||
Other comprehensive loss, net of tax benefits
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,773
|
)
|
|
(12,773
|
)
|
||||
Share-based expenses and other, net
|
|
53
|
|
|
658
|
|
|
—
|
|
|
—
|
|
|
658
|
|
||||
Common stock dividends (31¢ per share)
|
|
—
|
|
|
—
|
|
|
(33,741
|
)
|
|
—
|
|
|
(33,741
|
)
|
||||
Balance, March 31, 2018
|
|
108,841
|
|
|
$
|
1,663,149
|
|
|
$
|
483,342
|
|
|
$
|
(54,714
|
)
|
|
$
|
2,091,777
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
46,161
|
|
|
$
|
40,720
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||
Depreciation of property, plant and equipment
|
|
57,435
|
|
|
53,091
|
|
||
Other amortization
|
|
9,792
|
|
|
8,745
|
|
||
Provision for loan losses
|
|
6,870
|
|
|
3,541
|
|
||
Loans originated and purchased, held for sale
|
|
(30,934
|
)
|
|
(36,409
|
)
|
||
Proceeds from sale of loans, held for sale
|
|
24,900
|
|
|
33,114
|
|
||
Deferred income taxes
|
|
(3,171
|
)
|
|
(2,889
|
)
|
||
Share-based compensation expense
|
|
2,162
|
|
|
1,657
|
|
||
Allowance for equity funds used during construction
|
|
(2,910
|
)
|
|
(3,294
|
)
|
||
Other
|
|
(3,482
|
)
|
|
2,150
|
|
||
Changes in assets and liabilities
|
|
|
|
|
|
|
||
Decrease (increase) in accounts receivable and unbilled revenues, net
|
|
57,949
|
|
|
(7,829
|
)
|
||
Increase in fuel oil stock
|
|
(37,574
|
)
|
|
(1,704
|
)
|
||
Increase in regulatory assets
|
|
(5,040
|
)
|
|
(16,900
|
)
|
||
Increase in accounts, interest and dividends payable
|
|
10,413
|
|
|
22,808
|
|
||
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes
|
|
(33,136
|
)
|
|
(29,842
|
)
|
||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability
|
|
3,220
|
|
|
(390
|
)
|
||
Change in other assets and liabilities
|
|
(25,486
|
)
|
|
(31,892
|
)
|
||
Net cash provided by operating activities
|
|
77,169
|
|
|
34,677
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
||
Available-for-sale investment securities purchased
|
|
(4,334
|
)
|
|
(88,403
|
)
|
||
Principal repayments on available-for-sale investment securities
|
|
57,074
|
|
|
51,895
|
|
||
Principal repayments of held-to-maturity investment securities
|
|
1,681
|
|
|
1,032
|
|
||
Purchase of stock from Federal Home Loan Bank
|
|
(26,036
|
)
|
|
(2,853
|
)
|
||
Redemption of stock from Federal Home Loan Bank
|
|
26,560
|
|
|
2,400
|
|
||
Net increase in loans held for investment
|
|
(19,804
|
)
|
|
(75,006
|
)
|
||
Proceeds from sale of commercial loans
|
|
—
|
|
|
7,149
|
|
||
Proceeds from sale of real estate acquired in settlement of loans
|
|
402
|
|
|
589
|
|
||
Capital expenditures
|
|
(120,424
|
)
|
|
(129,022
|
)
|
||
Contributions to low income housing investments
|
|
(1,627
|
)
|
|
(1,425
|
)
|
||
Other
|
|
3,530
|
|
|
2,593
|
|
||
Net cash used in investing activities
|
|
(82,978
|
)
|
|
(231,051
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
||
Net increase in deposit liabilities
|
|
46,807
|
|
|
86,095
|
|
||
Net increase in short-term borrowings with original maturities of three months or less
|
|
11,407
|
|
|
120,485
|
|
||
Proceeds from issuance of short-term debt
|
|
25,000
|
|
|
—
|
|
||
Net increase (decrease) in retail repurchase agreements
|
|
(170
|
)
|
|
11,946
|
|
||
Proceeds from other bank borrowings
|
|
644,000
|
|
|
60,000
|
|
||
Repayments of other bank borrowings
|
|
(664,000
|
)
|
|
(60,000
|
)
|
||
Proceeds from issuance of long-term debt
|
|
550
|
|
|
—
|
|
||
Withheld shares for employee taxes on vested share-based compensation
|
|
(996
|
)
|
|
(991
|
)
|
||
Common stock dividends
|
|
(34,860
|
)
|
|
(33,741
|
)
|
||
Preferred stock dividends of subsidiaries
|
|
(473
|
)
|
|
(473
|
)
|
||
Other
|
|
(4,257
|
)
|
|
(4,043
|
)
|
||
Net cash provided by financing activities
|
|
23,008
|
|
|
179,278
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
17,199
|
|
|
(17,096
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
169,208
|
|
|
261,881
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
186,407
|
|
|
$
|
244,785
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Revenues
|
|
$
|
578,495
|
|
|
$
|
570,427
|
|
Expenses
|
|
|
|
|
|
|
||
Fuel oil
|
|
160,609
|
|
|
166,968
|
|
||
Purchased power
|
|
134,445
|
|
|
139,910
|
|
||
Other operation and maintenance
|
|
118,130
|
|
|
107,610
|
|
||
Depreciation
|
|
53,947
|
|
|
50,466
|
|
||
Taxes, other than income taxes
|
|
54,804
|
|
|
54,104
|
|
||
Total expenses
|
|
521,935
|
|
|
519,058
|
|
||
Operating income
|
|
56,560
|
|
|
51,369
|
|
||
Allowance for equity funds used during construction
|
|
2,910
|
|
|
3,294
|
|
||
Retirement defined benefits expense—other than service costs
|
|
(703
|
)
|
|
(1,264
|
)
|
||
Interest expense and other charges, net
|
|
(17,986
|
)
|
|
(17,694
|
)
|
||
Allowance for borrowed funds used during construction
|
|
1,078
|
|
|
1,444
|
|
||
Income before income taxes
|
|
41,859
|
|
|
37,149
|
|
||
Income taxes
|
|
9,234
|
|
|
9,175
|
|
||
Net income
|
|
32,625
|
|
|
27,974
|
|
||
Preferred stock dividends of subsidiaries
|
|
229
|
|
|
229
|
|
||
Net income attributable to Hawaiian Electric
|
|
32,396
|
|
|
27,745
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
270
|
|
||
Net income for common stock
|
|
$
|
32,126
|
|
|
$
|
27,475
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Net income for common stock
|
|
$
|
32,126
|
|
|
$
|
27,475
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
||
Retirement benefit plans:
|
|
|
|
|
|
|
||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $805 and $1,614, respectively
|
|
2,322
|
|
|
4,653
|
|
||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $797 and $1,603, respectively
|
|
(2,298
|
)
|
|
(4,622
|
)
|
||
Other comprehensive income, net of taxes
|
|
24
|
|
|
31
|
|
||
Comprehensive income attributable to Hawaiian Electric Company, Inc.
|
|
$
|
32,150
|
|
|
$
|
27,506
|
|
(dollars in thousands, except par value)
|
|
March 31, 2019
|
|
|
December 31, 2018
|
|
||
Assets
|
|
|
|
|
|
|
||
Property, plant and equipment
|
|
|
|
|
||||
Utility property, plant and equipment
|
|
|
|
|
|
|
||
Land
|
|
$
|
49,667
|
|
|
$
|
49,667
|
|
Plant and equipment
|
|
6,874,568
|
|
|
6,809,671
|
|
||
Less accumulated depreciation
|
|
(2,615,214
|
)
|
|
(2,577,342
|
)
|
||
Construction in progress
|
|
247,317
|
|
|
233,145
|
|
||
Utility property, plant and equipment, net
|
|
4,556,338
|
|
|
4,515,141
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation of $1,256 and $1,255 as of March 31, 2019 and December 31, 2018, respectively
|
|
6,960
|
|
|
6,961
|
|
||
Total property, plant and equipment, net
|
|
4,563,298
|
|
|
4,522,102
|
|
||
Current assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
8,381
|
|
|
35,877
|
|
||
Customer accounts receivable, net
|
|
137,413
|
|
|
177,896
|
|
||
Accrued unbilled revenues, net
|
|
95,905
|
|
|
121,738
|
|
||
Other accounts receivable, net
|
|
7,253
|
|
|
6,215
|
|
||
Fuel oil stock, at average cost
|
|
116,498
|
|
|
79,935
|
|
||
Materials and supplies, at average cost
|
|
56,584
|
|
|
55,204
|
|
||
Prepayments and other
|
|
33,887
|
|
|
32,118
|
|
||
Regulatory assets
|
|
72,018
|
|
|
71,016
|
|
||
Total current assets
|
|
527,939
|
|
|
579,999
|
|
||
Other long-term assets
|
|
|
|
|
|
|
||
Operating lease right-of-use assets
|
|
221,261
|
|
|
—
|
|
||
Regulatory assets
|
|
754,168
|
|
|
762,410
|
|
||
Other
|
|
104,222
|
|
|
102,992
|
|
||
Total other long-term assets
|
|
1,079,651
|
|
|
865,402
|
|
||
Total assets
|
|
$
|
6,170,888
|
|
|
$
|
5,967,503
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
||
Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 16,751,488 shares at March 31, 2019 and December 31, 2018)
|
|
$
|
111,696
|
|
|
$
|
111,696
|
|
Premium on capital stock
|
|
681,305
|
|
|
681,305
|
|
||
Retained earnings
|
|
1,171,354
|
|
|
1,164,541
|
|
||
Accumulated other comprehensive loss, net of tax benefits-retirement benefit plans
|
|
123
|
|
|
99
|
|
||
Common stock equity
|
|
1,964,478
|
|
|
1,957,641
|
|
||
Cumulative preferred stock — not subject to mandatory redemption
|
|
34,293
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
1,337,016
|
|
|
1,418,802
|
|
||
Total capitalization
|
|
3,335,787
|
|
|
3,410,736
|
|
||
Commitments and contingencies (Note 3)
|
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
|
||
Current portion of operating lease liabilities
|
|
61,269
|
|
|
—
|
|
||
Current portion of long-term debt
|
|
81,957
|
|
|
—
|
|
||
Short-term borrowings from non-affiliates
|
|
55,999
|
|
|
25,000
|
|
||
Accounts payable
|
|
156,146
|
|
|
171,791
|
|
||
Interest and preferred dividends payable
|
|
27,608
|
|
|
23,215
|
|
||
Taxes accrued, including revenue taxes
|
|
193,334
|
|
|
233,333
|
|
||
Regulatory liabilities
|
|
12,613
|
|
|
17,977
|
|
||
Other
|
|
62,423
|
|
|
60,003
|
|
||
Total current liabilities
|
|
651,349
|
|
|
531,319
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
||
Operating lease liabilities
|
|
159,875
|
|
|
—
|
|
||
Deferred income taxes
|
|
382,672
|
|
|
383,197
|
|
||
Regulatory liabilities
|
|
940,606
|
|
|
932,259
|
|
||
Unamortized tax credits
|
|
91,569
|
|
|
91,522
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
503,404
|
|
|
503,659
|
|
||
Other
|
|
105,626
|
|
|
114,811
|
|
||
Total deferred credits and other liabilities
|
|
2,183,752
|
|
|
2,025,448
|
|
||
Total capitalization and liabilities
|
|
$
|
6,170,888
|
|
|
$
|
5,967,503
|
|
|
|
Common stock
|
|
Premium
on
capital
|
|
Retained
|
|
Accumulated
other
comprehensive
|
|
|
|||||||||||||
(in thousands)
|
|
Shares
|
|
Amount
|
|
stock
|
|
earnings
|
|
income (loss)
|
|
Total
|
|||||||||||
Balance, December 31, 2018
|
|
16,751
|
|
|
$
|
111,696
|
|
|
$
|
681,305
|
|
|
$
|
1,164,541
|
|
|
$
|
99
|
|
|
$
|
1,957,641
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,126
|
|
|
—
|
|
|
32,126
|
|
|||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
24
|
|
|||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,313
|
)
|
|
—
|
|
|
(25,313
|
)
|
|||||
Balance, March 31, 2019
|
|
16,751
|
|
|
$
|
111,696
|
|
|
$
|
681,305
|
|
|
$
|
1,171,354
|
|
|
$
|
123
|
|
|
$
|
1,964,478
|
|
Balance, December 31, 2017
|
|
16,142
|
|
|
$
|
107,634
|
|
|
$
|
614,675
|
|
|
$
|
1,124,193
|
|
|
$
|
(1,219
|
)
|
|
$
|
1,845,283
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,475
|
|
|
—
|
|
|
27,475
|
|
|||||
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
31
|
|
|||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,826
|
)
|
|
—
|
|
|
(25,826
|
)
|
|||||
Common stock issuance expenses
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Balance, March 31, 2018
|
|
16,142
|
|
|
$
|
107,634
|
|
|
$
|
614,667
|
|
|
$
|
1,125,842
|
|
|
$
|
(1,188
|
)
|
|
$
|
1,846,955
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
32,625
|
|
|
$
|
27,974
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||
Depreciation of property, plant and equipment
|
|
53,947
|
|
|
50,466
|
|
||
Other amortization
|
|
6,714
|
|
|
5,344
|
|
||
Deferred income taxes
|
|
(3,127
|
)
|
|
(1,580
|
)
|
||
Allowance for equity funds used during construction
|
|
(2,910
|
)
|
|
(3,294
|
)
|
||
Other
|
|
(1,817
|
)
|
|
2,681
|
|
||
Changes in assets and liabilities
|
|
|
|
|
|
|
||
Decrease (increase) in accounts receivable
|
|
37,163
|
|
|
(15,037
|
)
|
||
Decrease in accrued unbilled revenues
|
|
25,833
|
|
|
7,419
|
|
||
Increase in fuel oil stock
|
|
(36,564
|
)
|
|
(1,850
|
)
|
||
Increase in materials and supplies
|
|
(1,381
|
)
|
|
(1,295
|
)
|
||
Increase in regulatory assets
|
|
(5,040
|
)
|
|
(16,900
|
)
|
||
Increase (decrease) in accounts payable
|
|
(927
|
)
|
|
5,143
|
|
||
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
|
(34,668
|
)
|
|
(32,866
|
)
|
||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability
|
|
2,991
|
|
|
(938
|
)
|
||
Change in other assets and liabilities
|
|
(3,423
|
)
|
|
4,513
|
|
||
Net cash provided by operating activities
|
|
69,416
|
|
|
29,780
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(102,891
|
)
|
|
(110,127
|
)
|
||
Other
|
|
794
|
|
|
603
|
|
||
Net cash used in investing activities
|
|
(102,097
|
)
|
|
(109,524
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
||
Common stock dividends
|
|
(25,313
|
)
|
|
(25,826
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(499
|
)
|
|
(499
|
)
|
||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
5,999
|
|
|
116,984
|
|
||
Proceeds from other bank borrowings
|
|
25,000
|
|
|
—
|
|
||
Other
|
|
(2
|
)
|
|
(33
|
)
|
||
Net cash provided by financing activities
|
|
5,185
|
|
|
90,626
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(27,496
|
)
|
|
10,882
|
|
||
Cash and cash equivalents, beginning of period
|
|
35,877
|
|
|
12,517
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
8,381
|
|
|
$
|
23,399
|
|
(in thousands)
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
||||||||
Three months ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
578,482
|
|
|
$
|
83,052
|
|
|
$
|
81
|
|
|
$
|
661,615
|
|
Intersegment revenues (eliminations)
|
|
13
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
||||
Revenues
|
|
$
|
578,495
|
|
|
$
|
83,052
|
|
|
$
|
68
|
|
|
$
|
661,615
|
|
Income (loss) before income taxes
|
|
$
|
41,859
|
|
|
$
|
26,162
|
|
|
$
|
(9,982
|
)
|
|
$
|
58,039
|
|
Income taxes (benefit)
|
|
9,234
|
|
|
5,323
|
|
|
(2,679
|
)
|
|
11,878
|
|
||||
Net income (loss)
|
|
32,625
|
|
|
20,839
|
|
|
(7,303
|
)
|
|
46,161
|
|
||||
Preferred stock dividends of subsidiaries
|
|
499
|
|
|
—
|
|
|
(26
|
)
|
|
473
|
|
||||
Net income (loss) for common stock
|
|
$
|
32,126
|
|
|
$
|
20,839
|
|
|
$
|
(7,277
|
)
|
|
$
|
45,688
|
|
Total assets (at March 31, 2019)
|
|
$
|
6,170,888
|
|
|
$
|
7,062,367
|
|
|
$
|
126,850
|
|
|
$
|
13,360,105
|
|
Three months ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers
|
|
$
|
570,414
|
|
|
$
|
75,419
|
|
|
$
|
41
|
|
|
$
|
645,874
|
|
Intersegment revenues (eliminations)
|
|
13
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
||||
Revenues
|
|
$
|
570,427
|
|
|
$
|
75,419
|
|
|
$
|
28
|
|
|
$
|
645,874
|
|
Income (loss) before income taxes
|
|
$
|
37,149
|
|
|
$
|
24,500
|
|
|
$
|
(8,373
|
)
|
|
$
|
53,276
|
|
Income taxes (benefit)
|
|
9,175
|
|
|
5,540
|
|
|
(2,159
|
)
|
|
12,556
|
|
||||
Net income (loss)
|
|
27,974
|
|
|
18,960
|
|
|
(6,214
|
)
|
|
40,720
|
|
||||
Preferred stock dividends of subsidiaries
|
|
499
|
|
|
—
|
|
|
(26
|
)
|
|
473
|
|
||||
Net income (loss) for common stock
|
|
$
|
27,475
|
|
|
$
|
18,960
|
|
|
$
|
(6,188
|
)
|
|
$
|
40,247
|
|
Total assets (at December 31, 2018)
|
|
$
|
5,967,503
|
|
|
$
|
7,027,894
|
|
|
$
|
108,654
|
|
|
$
|
13,104,051
|
|
|
|
Three months ended March 31
|
||||||
(in millions)
|
|
2019
|
|
2018
|
||||
Kalaeloa
|
|
$
|
40
|
|
|
$
|
40
|
|
AES Hawaii
|
|
32
|
|
|
37
|
|
||
HPOWER
|
|
18
|
|
|
15
|
|
||
Puna Geothermal Venture
|
|
—
|
|
|
11
|
|
||
Hamakua Energy
|
|
16
|
|
|
7
|
|
||
Wind IPPs
|
|
20
|
|
|
22
|
|
||
Solar IPPs
|
|
7
|
|
|
6
|
|
||
Other IPPs 1
|
|
1
|
|
|
2
|
|
||
Total IPPs
|
|
$
|
134
|
|
|
$
|
140
|
|
1
|
Includes hydro power and other PPAs
|
•
|
Hawaiian Electric's RAM revenues were limited to the RAM Cap in 2018.
|
•
|
Maui Electric's RAM revenues were below the RAM Cap in 2018.
|
•
|
Hawaii Electric Light’s RAM revenues were limited to the RAM Cap in 2018.
|
•
|
Service Quality performance incentives are measured on a calendar-year basis. The PIM tariff requires the performance targets, deadbands and the amount of maximum financial incentives used to determine the PIM financial incentive levels for each of the PIMs to be re-determined upon issuance of an interim or final order in a general rate case for each utility.
|
•
|
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 approved rate base (or maximum penalties of approximately $6.7 million - 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 approved rate base (or maximum penalties or incentives of approximately $1.3 million - in total for the three utilities).
|
•
|
The Utilities accrued $2.1 million in estimated net service quality penalties for 2018, which will be reflected in the 2019 annual decoupling filing and will reduce customer rates in the period June 1, 2019 through May 31, 2020.
|
•
|
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 a percentage of the 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. For PPAs filed by December 31, 2018 and subsequently approved by the PUC, the incentive is 20% of the savings, with a cap of $3.5 million for the three utilities in total. For PPAs filed in January, February, and March 2019 and subsequently approved by the PUC, scaled incentives are 15%, 10% and 5%, respectively, of the savings for PPAs, with a cap of $3 million for the three utilities in total. There are no penalties. On March 25, 2019, the PUC approved six contracts, which were filed by December 31, 2018 and qualified for incentives. Half of the incentive is earned upon PUC approval of the contact and the other half is eligible to be earned in the year following the in-service date of the projects. The Utilities accrued $1.7 million in incentives in March 2019.
|
(in millions)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
||||||
2019 Annual incremental RAM adjusted revenues
|
|
$
|
14.0
|
|
|
$
|
3.5
|
|
|
$
|
3.3
|
|
Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes)
|
|
$
|
(12.2
|
)
|
|
$
|
(1.9
|
)
|
|
$
|
0.8
|
|
2017 Tax Act Adjustment*
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.8
|
|
Performance Incentive Mechanism
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
(0.4
|
)
|
Net annual incremental amount to be collected under the tariffs
|
|
$
|
1.9
|
|
|
$
|
1.6
|
|
|
$
|
6.5
|
|
•
|
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
|
|
$
|
405,669
|
|
|
87,205
|
|
|
85,653
|
|
|
—
|
|
|
(32
|
)
|
|
$
|
578,495
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
108,922
|
|
|
20,842
|
|
|
30,845
|
|
|
—
|
|
|
—
|
|
|
160,609
|
|
||
Purchased power
|
|
105,223
|
|
|
19,177
|
|
|
10,045
|
|
|
—
|
|
|
—
|
|
|
134,445
|
|
||
Other operation and maintenance
|
|
81,178
|
|
|
18,736
|
|
|
18,216
|
|
|
—
|
|
|
—
|
|
|
118,130
|
|
||
Depreciation
|
|
35,867
|
|
|
10,453
|
|
|
7,627
|
|
|
—
|
|
|
—
|
|
|
53,947
|
|
||
Taxes, other than income taxes
|
|
38,631
|
|
|
8,105
|
|
|
8,068
|
|
|
—
|
|
|
—
|
|
|
54,804
|
|
||
Total expenses
|
|
369,821
|
|
|
77,313
|
|
|
74,801
|
|
|
—
|
|
|
—
|
|
|
521,935
|
|
||
Operating income
|
|
35,848
|
|
|
9,892
|
|
|
10,852
|
|
|
—
|
|
|
(32
|
)
|
|
56,560
|
|
||
Allowance for equity funds used during construction
|
|
2,447
|
|
|
132
|
|
|
331
|
|
|
—
|
|
|
—
|
|
|
2,910
|
|
||
Equity in earnings of subsidiaries
|
|
11,849
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,849
|
)
|
|
—
|
|
||
Retirement defined benefits expense—other than service costs
|
|
(567
|
)
|
|
(106
|
)
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
(703
|
)
|
||
Interest expense and other charges, net
|
|
(12,800
|
)
|
|
(2,901
|
)
|
|
(2,317
|
)
|
|
—
|
|
|
32
|
|
|
(17,986
|
)
|
||
Allowance for borrowed funds used during construction
|
|
902
|
|
|
56
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
1,078
|
|
||
Income before income taxes
|
|
37,679
|
|
|
7,073
|
|
|
8,956
|
|
|
—
|
|
|
(11,849
|
)
|
|
41,859
|
|
||
Income taxes
|
|
5,283
|
|
|
1,770
|
|
|
2,181
|
|
|
—
|
|
|
—
|
|
|
9,234
|
|
||
Net income
|
|
32,396
|
|
|
5,303
|
|
|
6,775
|
|
|
—
|
|
|
(11,849
|
)
|
|
32,625
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
134
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
229
|
|
||
Net income attributable to Hawaiian Electric
|
|
32,396
|
|
|
5,169
|
|
|
6,680
|
|
|
—
|
|
|
(11,849
|
)
|
|
32,396
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
||
Net income for common stock
|
|
$
|
32,126
|
|
|
5,169
|
|
|
6,680
|
|
|
—
|
|
|
(11,849
|
)
|
|
$
|
32,126
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income for common stock
|
|
$
|
32,126
|
|
|
5,169
|
|
|
6,680
|
|
|
—
|
|
|
(11,849
|
)
|
|
$
|
32,126
|
|
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
|
|
2,322
|
|
|
352
|
|
|
289
|
|
|
—
|
|
|
(641
|
)
|
|
2,322
|
|
||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(2,298
|
)
|
|
(351
|
)
|
|
(289
|
)
|
|
—
|
|
|
640
|
|
|
(2,298
|
)
|
||
Other comprehensive income, net of taxes
|
|
24
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
24
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
32,150
|
|
|
5,170
|
|
|
6,680
|
|
|
—
|
|
|
(11,850
|
)
|
|
$
|
32,150
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Revenues
|
|
$
|
401,180
|
|
|
87,933
|
|
|
81,356
|
|
|
—
|
|
|
(42
|
)
|
|
$
|
570,427
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel oil
|
|
114,498
|
|
|
18,487
|
|
|
33,983
|
|
|
—
|
|
|
—
|
|
|
166,968
|
|
||
Purchased power
|
|
107,370
|
|
|
23,834
|
|
|
8,706
|
|
|
—
|
|
|
—
|
|
|
139,910
|
|
||
Other operation and maintenance
|
|
72,940
|
|
|
16,098
|
|
|
18,572
|
|
|
—
|
|
|
—
|
|
|
107,610
|
|
||
Depreciation
|
|
34,439
|
|
|
10,055
|
|
|
5,972
|
|
|
—
|
|
|
—
|
|
|
50,466
|
|
||
Taxes, other than income taxes
|
|
38,167
|
|
|
8,212
|
|
|
7,725
|
|
|
—
|
|
|
—
|
|
|
54,104
|
|
||
Total expenses
|
|
367,414
|
|
|
76,686
|
|
|
74,958
|
|
|
—
|
|
|
—
|
|
|
519,058
|
|
||
Operating income
|
|
33,766
|
|
|
11,247
|
|
|
6,398
|
|
|
—
|
|
|
(42
|
)
|
|
51,369
|
|
||
Allowance for equity funds used during construction
|
|
2,887
|
|
|
111
|
|
|
296
|
|
|
—
|
|
|
—
|
|
|
3,294
|
|
||
Equity in earnings of subsidiaries
|
|
9,325
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,325
|
)
|
|
—
|
|
||
Retirement defined benefits expense—other than service costs
|
|
(1,062
|
)
|
|
(103
|
)
|
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
(1,264
|
)
|
||
Interest expense and other charges, net
|
|
(12,495
|
)
|
|
(2,907
|
)
|
|
(2,334
|
)
|
|
—
|
|
|
42
|
|
|
(17,694
|
)
|
||
Allowance for borrowed funds used during construction
|
|
1,238
|
|
|
64
|
|
|
142
|
|
|
—
|
|
|
—
|
|
|
1,444
|
|
||
Income before income taxes
|
|
33,659
|
|
|
8,412
|
|
|
4,403
|
|
|
—
|
|
|
(9,325
|
)
|
|
37,149
|
|
||
Income taxes
|
|
5,914
|
|
|
2,177
|
|
|
1,084
|
|
|
—
|
|
|
—
|
|
|
9,175
|
|
||
Net income
|
|
27,745
|
|
|
6,235
|
|
|
3,319
|
|
|
—
|
|
|
(9,325
|
)
|
|
27,974
|
|
||
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
134
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
229
|
|
||
Net income attributable to Hawaiian Electric
|
|
27,745
|
|
|
6,101
|
|
|
3,224
|
|
|
—
|
|
|
(9,325
|
)
|
|
27,745
|
|
||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
||
Net income for common stock
|
|
$
|
27,475
|
|
|
6,101
|
|
|
3,224
|
|
|
—
|
|
|
(9,325
|
)
|
|
$
|
27,475
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Net income for common stock
|
|
$
|
27,475
|
|
|
6,101
|
|
|
3,224
|
|
|
—
|
|
|
(9,325
|
)
|
|
$
|
27,475
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
|
|
4,653
|
|
|
675
|
|
|
562
|
|
|
—
|
|
|
(1,237
|
)
|
|
4,653
|
|
||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(4,622
|
)
|
|
(675
|
)
|
|
(562
|
)
|
|
—
|
|
|
1,237
|
|
|
(4,622
|
)
|
||
Other comprehensive income, net of taxes
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
||
Comprehensive income attributable to common shareholder
|
|
$
|
27,506
|
|
|
6,101
|
|
|
3,224
|
|
|
—
|
|
|
(9,325
|
)
|
|
$
|
27,506
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consoli-
dating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Utility property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Land
|
|
$
|
40,449
|
|
|
5,606
|
|
|
3,612
|
|
|
—
|
|
|
—
|
|
|
$
|
49,667
|
|
Plant and equipment
|
|
4,505,063
|
|
|
1,262,332
|
|
|
1,107,173
|
|
|
—
|
|
|
—
|
|
|
6,874,568
|
|
||
Less accumulated depreciation
|
|
(1,548,895
|
)
|
|
(554,438
|
)
|
|
(511,881
|
)
|
|
—
|
|
|
—
|
|
|
(2,615,214
|
)
|
||
Construction in progress
|
|
200,399
|
|
|
14,520
|
|
|
32,398
|
|
|
—
|
|
|
—
|
|
|
247,317
|
|
||
Utility property, plant and equipment, net
|
|
3,197,016
|
|
|
728,020
|
|
|
631,302
|
|
|
—
|
|
|
—
|
|
|
4,556,338
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation
|
|
5,313
|
|
|
115
|
|
|
1,532
|
|
|
—
|
|
|
—
|
|
|
6,960
|
|
||
Total property, plant and equipment, net
|
|
3,202,329
|
|
|
728,135
|
|
|
632,834
|
|
|
—
|
|
|
—
|
|
|
4,563,298
|
|
||
Investment in wholly owned subsidiaries, at equity
|
|
582,374
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(582,374
|
)
|
|
—
|
|
||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
2,994
|
|
|
3,825
|
|
|
1,461
|
|
|
101
|
|
|
—
|
|
|
8,381
|
|
||
Advances to affiliates
|
|
9,500
|
|
|
9,200
|
|
|
—
|
|
|
—
|
|
|
(18,700
|
)
|
|
—
|
|
||
Customer accounts receivable, net
|
|
94,489
|
|
|
23,373
|
|
|
19,551
|
|
|
—
|
|
|
—
|
|
|
137,413
|
|
||
Accrued unbilled revenues, net
|
|
69,315
|
|
|
13,398
|
|
|
13,192
|
|
|
—
|
|
|
—
|
|
|
95,905
|
|
||
Other accounts receivable, net
|
|
10,667
|
|
|
1,447
|
|
|
1,967
|
|
|
—
|
|
|
(6,828
|
)
|
|
7,253
|
|
||
Fuel oil stock, at average cost
|
|
91,090
|
|
|
10,796
|
|
|
14,612
|
|
|
—
|
|
|
—
|
|
|
116,498
|
|
||
Materials and supplies, at average cost
|
|
30,766
|
|
|
8,037
|
|
|
17,781
|
|
|
—
|
|
|
—
|
|
|
56,584
|
|
||
Prepayments and other
|
|
25,940
|
|
|
3,944
|
|
|
4,003
|
|
|
—
|
|
|
—
|
|
|
33,887
|
|
||
Regulatory assets
|
|
60,374
|
|
|
2,993
|
|
|
8,651
|
|
|
—
|
|
|
—
|
|
|
72,018
|
|
||
Total current assets
|
|
395,135
|
|
|
77,013
|
|
|
81,218
|
|
|
101
|
|
|
(25,528
|
)
|
|
527,939
|
|
||
Other long-term assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Operating lease right-of-use assets
|
|
219,246
|
|
|
1,605
|
|
|
410
|
|
|
—
|
|
|
—
|
|
|
221,261
|
|
||
Regulatory assets
|
|
530,424
|
|
|
118,315
|
|
|
105,429
|
|
|
—
|
|
|
—
|
|
|
754,168
|
|
||
Other
|
|
71,528
|
|
|
16,076
|
|
|
16,618
|
|
|
—
|
|
|
—
|
|
|
104,222
|
|
||
Total other long-term assets
|
|
821,198
|
|
|
135,996
|
|
|
122,457
|
|
|
—
|
|
|
—
|
|
|
1,079,651
|
|
||
Total assets
|
|
$
|
5,001,036
|
|
|
941,144
|
|
|
836,509
|
|
|
101
|
|
|
(607,902
|
)
|
|
$
|
6,170,888
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock equity
|
|
$
|
1,964,478
|
|
|
298,497
|
|
|
283,776
|
|
|
101
|
|
|
(582,374
|
)
|
|
$
|
1,964,478
|
|
Cumulative preferred stock—not subject to mandatory redemption
|
|
22,293
|
|
|
7,000
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
938,284
|
|
|
217,775
|
|
|
180,957
|
|
|
—
|
|
|
—
|
|
|
1,337,016
|
|
||
Total capitalization
|
|
2,925,055
|
|
|
523,272
|
|
|
469,733
|
|
|
101
|
|
|
(582,374
|
)
|
|
3,335,787
|
|
||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Current portion of operating lease liabilities
|
|
61,149
|
|
|
91
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
61,269
|
|
||
Current portion of long-term debt
|
|
61,968
|
|
|
—
|
|
|
19,989
|
|
|
—
|
|
|
—
|
|
|
81,957
|
|
||
Short-term borrowings from non-affiliates
|
|
55,999
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55,999
|
|
||
Short-term borrowings from affiliate
|
|
9,200
|
|
|
—
|
|
|
9,500
|
|
|
—
|
|
|
(18,700
|
)
|
|
—
|
|
||
Accounts payable
|
|
120,366
|
|
|
14,391
|
|
|
21,389
|
|
|
—
|
|
|
—
|
|
|
156,146
|
|
||
Interest and preferred dividends payable
|
|
19,629
|
|
|
4,073
|
|
|
3,929
|
|
|
—
|
|
|
(23
|
)
|
|
27,608
|
|
||
Taxes accrued
|
|
135,189
|
|
|
29,238
|
|
|
28,907
|
|
|
—
|
|
|
—
|
|
|
193,334
|
|
||
Regulatory liabilities
|
|
3,981
|
|
|
3,882
|
|
|
4,750
|
|
|
—
|
|
|
—
|
|
|
12,613
|
|
||
Other
|
|
45,380
|
|
|
9,355
|
|
|
14,493
|
|
|
—
|
|
|
(6,805
|
)
|
|
62,423
|
|
||
Total current liabilities
|
|
512,861
|
|
|
61,030
|
|
|
102,986
|
|
|
—
|
|
|
(25,528
|
)
|
|
651,349
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Operating lease liabilities
|
|
157,980
|
|
|
1,513
|
|
|
382
|
|
|
—
|
|
|
—
|
|
|
159,875
|
|
||
Deferred income taxes
|
|
271,098
|
|
|
53,967
|
|
|
57,607
|
|
|
—
|
|
|
—
|
|
|
382,672
|
|
||
Regulatory liabilities
|
|
664,229
|
|
|
177,240
|
|
|
99,137
|
|
|
—
|
|
|
—
|
|
|
940,606
|
|
||
Unamortized tax credits
|
|
60,323
|
|
|
16,366
|
|
|
14,880
|
|
|
—
|
|
|
—
|
|
|
91,569
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
359,109
|
|
|
72,991
|
|
|
71,304
|
|
|
—
|
|
|
—
|
|
|
503,404
|
|
||
Other
|
|
50,381
|
|
|
34,765
|
|
|
20,480
|
|
|
—
|
|
|
—
|
|
|
105,626
|
|
||
Total deferred credits and other liabilities
|
|
1,563,120
|
|
|
356,842
|
|
|
263,790
|
|
|
—
|
|
|
—
|
|
|
2,183,752
|
|
||
Total capitalization and liabilities
|
|
$
|
5,001,036
|
|
|
941,144
|
|
|
836,509
|
|
|
101
|
|
|
(607,902
|
)
|
|
$
|
6,170,888
|
|
(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
|
|
$
|
40,449
|
|
|
5,606
|
|
|
3,612
|
|
|
—
|
|
|
—
|
|
|
$
|
49,667
|
|
Plant and equipment
|
|
4,456,090
|
|
|
1,259,553
|
|
|
1,094,028
|
|
|
—
|
|
|
—
|
|
|
6,809,671
|
|
||
Less accumulated depreciation
|
|
(1,523,861
|
)
|
|
(547,848
|
)
|
|
(505,633
|
)
|
|
—
|
|
|
—
|
|
|
(2,577,342
|
)
|
||
Construction in progress
|
|
193,677
|
|
|
8,781
|
|
|
30,687
|
|
|
—
|
|
|
—
|
|
|
233,145
|
|
||
Utility property, plant and equipment, net
|
|
3,166,355
|
|
|
726,092
|
|
|
622,694
|
|
|
—
|
|
|
—
|
|
|
4,515,141
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation
|
|
5,314
|
|
|
115
|
|
|
1,532
|
|
|
—
|
|
|
—
|
|
|
6,961
|
|
||
Total property, plant and equipment, net
|
|
3,171,669
|
|
|
726,207
|
|
|
624,226
|
|
|
—
|
|
|
—
|
|
|
4,522,102
|
|
||
Investment in wholly owned subsidiaries, at equity
|
|
576,838
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(576,838
|
)
|
|
—
|
|
||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
16,732
|
|
|
15,623
|
|
|
3,421
|
|
|
101
|
|
|
—
|
|
|
35,877
|
|
||
Customer accounts receivable, net
|
|
125,960
|
|
|
26,483
|
|
|
25,453
|
|
|
—
|
|
|
—
|
|
|
177,896
|
|
||
Accrued unbilled revenues, net
|
|
88,060
|
|
|
17,051
|
|
|
16,627
|
|
|
—
|
|
|
—
|
|
|
121,738
|
|
||
Other accounts receivable, net
|
|
21,962
|
|
|
3,131
|
|
|
3,033
|
|
|
—
|
|
|
(21,911
|
)
|
|
6,215
|
|
||
Fuel oil stock, at average cost
|
|
54,262
|
|
|
11,027
|
|
|
14,646
|
|
|
—
|
|
|
—
|
|
|
79,935
|
|
||
Materials and supplies, at average cost
|
|
30,291
|
|
|
7,155
|
|
|
17,758
|
|
|
—
|
|
|
—
|
|
|
55,204
|
|
||
Prepayments and other
|
|
23,214
|
|
|
5,212
|
|
|
3,692
|
|
|
—
|
|
|
—
|
|
|
32,118
|
|
||
Regulatory assets
|
|
60,093
|
|
|
3,177
|
|
|
7,746
|
|
|
—
|
|
|
—
|
|
|
71,016
|
|
||
Total current assets
|
|
420,574
|
|
|
88,859
|
|
|
92,376
|
|
|
101
|
|
|
(21,911
|
)
|
|
579,999
|
|
||
Other long-term assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Regulatory assets
|
|
537,708
|
|
|
120,658
|
|
|
104,044
|
|
|
—
|
|
|
—
|
|
|
762,410
|
|
||
Other
|
|
69,749
|
|
|
15,944
|
|
|
17,299
|
|
|
—
|
|
|
—
|
|
|
102,992
|
|
||
Total other long-term assets
|
|
607,457
|
|
|
136,602
|
|
|
121,343
|
|
|
—
|
|
|
—
|
|
|
865,402
|
|
||
Total assets
|
|
$
|
4,776,538
|
|
|
951,668
|
|
|
837,945
|
|
|
101
|
|
|
(598,749
|
)
|
|
$
|
5,967,503
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capitalization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock equity
|
|
$
|
1,957,641
|
|
|
295,874
|
|
|
280,863
|
|
|
101
|
|
|
(576,838
|
)
|
|
$
|
1,957,641
|
|
Cumulative preferred stock—not subject to mandatory redemption
|
|
22,293
|
|
|
7,000
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
34,293
|
|
||
Long-term debt, net
|
|
1,000,137
|
|
|
217,749
|
|
|
200,916
|
|
|
—
|
|
|
—
|
|
|
1,418,802
|
|
||
Total capitalization
|
|
2,980,071
|
|
|
520,623
|
|
|
486,779
|
|
|
101
|
|
|
(576,838
|
)
|
|
3,410,736
|
|
||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Short-term borrowings-non-affiliate
|
|
25,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,000
|
|
||
Accounts payable
|
|
126,384
|
|
|
20,045
|
|
|
25,362
|
|
|
—
|
|
|
—
|
|
|
171,791
|
|
||
Interest and preferred dividends payable
|
|
16,203
|
|
|
4,203
|
|
|
2,841
|
|
|
—
|
|
|
(32
|
)
|
|
23,215
|
|
||
Taxes accrued
|
|
164,747
|
|
|
34,128
|
|
|
34,458
|
|
|
—
|
|
|
—
|
|
|
233,333
|
|
||
Regulatory liabilities
|
|
7,699
|
|
|
4,872
|
|
|
5,406
|
|
|
—
|
|
|
—
|
|
|
17,977
|
|
||
Other
|
|
46,391
|
|
|
15,077
|
|
|
20,414
|
|
|
—
|
|
|
(21,879
|
)
|
|
60,003
|
|
||
Total current liabilities
|
|
386,424
|
|
|
78,325
|
|
|
88,481
|
|
|
—
|
|
|
(21,911
|
)
|
|
531,319
|
|
||
Deferred credits and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Deferred income taxes
|
|
271,438
|
|
|
54,936
|
|
|
56,823
|
|
|
—
|
|
|
—
|
|
|
383,197
|
|
||
Regulatory liabilities
|
|
657,210
|
|
|
176,101
|
|
|
98,948
|
|
|
—
|
|
|
—
|
|
|
932,259
|
|
||
Unamortized tax credits
|
|
60,271
|
|
|
16,217
|
|
|
15,034
|
|
|
—
|
|
|
—
|
|
|
91,522
|
|
||
Defined benefit pension and other postretirement benefit plans liability
|
|
359,174
|
|
|
73,147
|
|
|
71,338
|
|
|
—
|
|
|
—
|
|
|
503,659
|
|
||
Other
|
|
61,950
|
|
|
32,319
|
|
|
20,542
|
|
|
—
|
|
|
—
|
|
|
114,811
|
|
||
Total deferred credits and other liabilities
|
|
1,410,043
|
|
|
352,720
|
|
|
262,685
|
|
|
—
|
|
|
—
|
|
|
2,025,448
|
|
||
Total capitalization and liabilities
|
|
$
|
4,776,538
|
|
|
951,668
|
|
|
837,945
|
|
|
101
|
|
|
(598,749
|
)
|
|
$
|
5,967,503
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Balance, December 31, 2018
|
|
$
|
1,957,641
|
|
|
295,874
|
|
|
280,863
|
|
|
101
|
|
|
(576,838
|
)
|
|
$
|
1,957,641
|
|
Net income for common stock
|
|
32,126
|
|
|
5,169
|
|
|
6,680
|
|
|
—
|
|
|
(11,849
|
)
|
|
32,126
|
|
||
Other comprehensive income, net of taxes
|
|
24
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
24
|
|
||
Common stock dividends
|
|
(25,313
|
)
|
|
(2,545
|
)
|
|
(3,767
|
)
|
|
—
|
|
|
6,312
|
|
|
(25,313
|
)
|
||
Common stock issuance expenses
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||
Balance, March 31, 2019
|
|
$
|
1,964,478
|
|
|
298,497
|
|
|
283,776
|
|
|
101
|
|
|
(582,374
|
)
|
|
$
|
1,964,478
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Balance, December 31, 2017
|
|
$
|
1,845,283
|
|
|
286,647
|
|
|
270,265
|
|
|
101
|
|
|
(557,013
|
)
|
|
$
|
1,845,283
|
|
Net income for common stock
|
|
27,475
|
|
|
6,101
|
|
|
3,224
|
|
|
—
|
|
|
(9,325
|
)
|
|
27,475
|
|
||
Other comprehensive income, net of taxes
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
||
Common stock dividends
|
|
(25,826
|
)
|
|
(3,821
|
)
|
|
(3,006
|
)
|
|
—
|
|
|
6,827
|
|
|
(25,826
|
)
|
||
Common stock issuance expenses
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
||
Balance, March 31, 2018
|
|
$
|
1,846,955
|
|
|
288,927
|
|
|
270,483
|
|
|
101
|
|
|
(559,511
|
)
|
|
$
|
1,846,955
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income
|
|
$
|
32,396
|
|
|
5,303
|
|
|
6,775
|
|
|
—
|
|
|
(11,849
|
)
|
|
$
|
32,625
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Equity in earnings of subsidiaries
|
|
(11,874
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,849
|
|
|
(25
|
)
|
||
Common stock dividends received from subsidiaries
|
|
6,311
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,311
|
)
|
|
—
|
|
||
Depreciation of property, plant and equipment
|
|
35,867
|
|
|
10,453
|
|
|
7,627
|
|
|
—
|
|
|
—
|
|
|
53,947
|
|
||
Other amortization
|
|
5,740
|
|
|
1,072
|
|
|
(98
|
)
|
|
—
|
|
|
—
|
|
|
6,714
|
|
||
Deferred income taxes
|
|
(2,757
|
)
|
|
(987
|
)
|
|
617
|
|
|
—
|
|
|
—
|
|
|
(3,127
|
)
|
||
Allowance for equity funds used during construction
|
|
(2,447
|
)
|
|
(132
|
)
|
|
(331
|
)
|
|
—
|
|
|
—
|
|
|
(2,910
|
)
|
||
Other
|
|
(1,288
|
)
|
|
(145
|
)
|
|
(384
|
)
|
|
—
|
|
|
—
|
|
|
(1,817
|
)
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Decrease in accounts receivable
|
|
42,419
|
|
|
4,194
|
|
|
5,633
|
|
|
—
|
|
|
(15,083
|
)
|
|
37,163
|
|
||
Decrease in accrued unbilled revenues
|
|
18,745
|
|
|
3,653
|
|
|
3,435
|
|
|
—
|
|
|
—
|
|
|
25,833
|
|
||
Decrease (increase) in fuel oil stock
|
|
(36,828
|
)
|
|
230
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
(36,564
|
)
|
||
Increase in materials and supplies
|
|
(475
|
)
|
|
(883
|
)
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
(1,381
|
)
|
||
Increase in regulatory assets
|
|
(1,114
|
)
|
|
(212
|
)
|
|
(3,714
|
)
|
|
—
|
|
|
—
|
|
|
(5,040
|
)
|
||
Increase (decrease) in accounts payable
|
|
6,251
|
|
|
(4,253
|
)
|
|
(2,925
|
)
|
|
—
|
|
|
—
|
|
|
(927
|
)
|
||
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
|
(25,874
|
)
|
|
(4,078
|
)
|
|
(4,716
|
)
|
|
—
|
|
|
—
|
|
|
(34,668
|
)
|
||
Increase in defined benefit pension and other postretirement benefit plans liability
|
|
2,322
|
|
|
313
|
|
|
356
|
|
|
—
|
|
|
—
|
|
|
2,991
|
|
||
Change in other assets and liabilities
|
|
(9,249
|
)
|
|
(5,783
|
)
|
|
(3,449
|
)
|
|
—
|
|
|
15,083
|
|
|
(3,398
|
)
|
||
Net cash provided by operating activities
|
|
58,145
|
|
|
8,745
|
|
|
8,837
|
|
|
—
|
|
|
(6,311
|
)
|
|
69,416
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(78,220
|
)
|
|
(8,371
|
)
|
|
(16,300
|
)
|
|
—
|
|
|
—
|
|
|
(102,891
|
)
|
||
Advances (to) from affiliates
|
|
(9,500
|
)
|
|
(9,200
|
)
|
|
—
|
|
|
—
|
|
|
18,700
|
|
|
—
|
|
||
Other
|
|
1,221
|
|
|
(293
|
)
|
|
(134
|
)
|
|
—
|
|
|
—
|
|
|
794
|
|
||
Net cash used in investing activities
|
|
(86,499
|
)
|
|
(17,864
|
)
|
|
(16,434
|
)
|
|
—
|
|
|
18,700
|
|
|
(102,097
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common stock dividends
|
|
(25,313
|
)
|
|
(2,544
|
)
|
|
(3,767
|
)
|
|
—
|
|
|
6,311
|
|
|
(25,313
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(270
|
)
|
|
(134
|
)
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
(499
|
)
|
||
Increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
15,199
|
|
|
—
|
|
|
9,500
|
|
|
—
|
|
|
(18,700
|
)
|
|
5,999
|
|
||
Proceeds from other bank borrowings
|
|
25,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,000
|
|
||
Other
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||
Net cash provided by (used in) financing activities
|
|
14,616
|
|
|
(2,679
|
)
|
|
5,637
|
|
|
—
|
|
|
(12,389
|
)
|
|
5,185
|
|
||
Net decrease in cash and cash equivalents
|
|
(13,738
|
)
|
|
(11,798
|
)
|
|
(1,960
|
)
|
|
—
|
|
|
—
|
|
|
(27,496
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
16,732
|
|
|
15,623
|
|
|
3,421
|
|
|
101
|
|
|
—
|
|
|
35,877
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
2,994
|
|
|
3,825
|
|
|
1,461
|
|
|
101
|
|
|
—
|
|
|
$
|
8,381
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries |
|
Consolidating
adjustments |
|
Hawaiian Electric
Consolidated |
||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income
|
|
$
|
27,745
|
|
|
6,235
|
|
|
3,319
|
|
|
—
|
|
|
(9,325
|
)
|
|
$
|
27,974
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Equity in earnings of subsidiaries
|
|
(9,350
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,325
|
|
|
(25
|
)
|
||
Common stock dividends received from subsidiaries
|
|
6,827
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,827
|
)
|
|
—
|
|
||
Depreciation of property, plant and equipment
|
|
34,439
|
|
|
10,055
|
|
|
5,972
|
|
|
—
|
|
|
—
|
|
|
50,466
|
|
||
Other amortization
|
|
3,237
|
|
|
1,554
|
|
|
553
|
|
|
—
|
|
|
—
|
|
|
5,344
|
|
||
Deferred income taxes
|
|
(271
|
)
|
|
(1,806
|
)
|
|
497
|
|
|
—
|
|
|
—
|
|
|
(1,580
|
)
|
||
Allowance for equity funds used during construction
|
|
(2,887
|
)
|
|
(111
|
)
|
|
(296
|
)
|
|
—
|
|
|
—
|
|
|
(3,294
|
)
|
||
Other
|
|
2,868
|
|
|
(103
|
)
|
|
(84
|
)
|
|
—
|
|
|
—
|
|
|
2,681
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Increase in accounts receivable
|
|
(13,255
|
)
|
|
(2,048
|
)
|
|
(1,396
|
)
|
|
—
|
|
|
1,662
|
|
|
(15,037
|
)
|
||
Increase in accrued unbilled revenues
|
|
6,558
|
|
|
758
|
|
|
103
|
|
|
—
|
|
|
—
|
|
|
7,419
|
|
||
Decrease (increase) in fuel oil stock
|
|
(1,322
|
)
|
|
(803
|
)
|
|
275
|
|
|
—
|
|
|
—
|
|
|
(1,850
|
)
|
||
Decrease (increase) in materials and supplies
|
|
(1,095
|
)
|
|
(550
|
)
|
|
350
|
|
|
—
|
|
|
—
|
|
|
(1,295
|
)
|
||
Increase in regulatory assets
|
|
(13,256
|
)
|
|
(1,773
|
)
|
|
(1,871
|
)
|
|
—
|
|
|
—
|
|
|
(16,900
|
)
|
||
Increase (decrease) in accounts payable
|
|
(2,028
|
)
|
|
4,050
|
|
|
3,121
|
|
|
—
|
|
|
—
|
|
|
5,143
|
|
||
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
|
(25,892
|
)
|
|
(1,882
|
)
|
|
(5,532
|
)
|
|
—
|
|
|
440
|
|
|
(32,866
|
)
|
||
Decrease in defined benefit pension and other postretirement benefit plans liability
|
|
(592
|
)
|
|
(198
|
)
|
|
(148
|
)
|
|
—
|
|
|
—
|
|
|
(938
|
)
|
||
Change in other assets and liabilities
|
|
2,976
|
|
|
2,875
|
|
|
349
|
|
|
—
|
|
|
(1,662
|
)
|
|
4,538
|
|
||
Net cash provided by operating activities
|
|
14,702
|
|
|
16,253
|
|
|
5,212
|
|
|
—
|
|
|
(6,387
|
)
|
|
29,780
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(80,899
|
)
|
|
(14,505
|
)
|
|
(14,723
|
)
|
|
—
|
|
|
—
|
|
|
(110,127
|
)
|
||
Advances (to) from affiliates
|
|
(3,000
|
)
|
|
—
|
|
|
12,000
|
|
|
—
|
|
|
(9,000
|
)
|
|
—
|
|
||
Other
|
|
269
|
|
|
264
|
|
|
510
|
|
|
—
|
|
|
(440
|
)
|
|
603
|
|
||
Net cash used in investing activities
|
|
(83,630
|
)
|
|
(14,241
|
)
|
|
(2,213
|
)
|
|
—
|
|
|
(9,440
|
)
|
|
(109,524
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common stock dividends
|
|
(25,826
|
)
|
|
(3,821
|
)
|
|
(3,006
|
)
|
|
—
|
|
|
6,827
|
|
|
(25,826
|
)
|
||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(270
|
)
|
|
(134
|
)
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
(499
|
)
|
||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
104,984
|
|
|
3,000
|
|
|
—
|
|
|
—
|
|
|
9,000
|
|
|
116,984
|
|
||
Other
|
|
(31
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
||
Net cash provided by (used in) financing activities
|
|
78,857
|
|
|
(957
|
)
|
|
(3,101
|
)
|
|
—
|
|
|
15,827
|
|
|
90,626
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
9,929
|
|
|
1,055
|
|
|
(102
|
)
|
|
—
|
|
|
—
|
|
|
10,882
|
|
||
Cash and cash equivalents, beginning of period
|
|
2,059
|
|
|
4,025
|
|
|
6,332
|
|
|
101
|
|
|
—
|
|
|
12,517
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
11,988
|
|
|
5,080
|
|
|
6,230
|
|
|
101
|
|
|
—
|
|
|
$
|
23,399
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Interest and dividend income
|
|
|
|
|
|
|
||
Interest and fees on loans
|
|
$
|
57,860
|
|
|
$
|
52,800
|
|
Interest and dividends on investment securities
|
|
10,628
|
|
|
9,202
|
|
||
Total interest and dividend income
|
|
68,488
|
|
|
62,002
|
|
||
Interest expense
|
|
|
|
|
|
|
||
Interest on deposit liabilities
|
|
4,252
|
|
|
2,957
|
|
||
Interest on other borrowings
|
|
528
|
|
|
496
|
|
||
Total interest expense
|
|
4,780
|
|
|
3,453
|
|
||
Net interest income
|
|
63,708
|
|
|
58,549
|
|
||
Provision for loan losses
|
|
6,870
|
|
|
3,541
|
|
||
Net interest income after provision for loan losses
|
|
56,838
|
|
|
55,008
|
|
||
Noninterest income
|
|
|
|
|
|
|
||
Fees from other financial services
|
|
4,562
|
|
|
4,654
|
|
||
Fee income on deposit liabilities
|
|
5,078
|
|
|
5,189
|
|
||
Fee income on other financial products
|
|
1,593
|
|
|
1,654
|
|
||
Bank-owned life insurance
|
|
2,259
|
|
|
871
|
|
||
Mortgage banking income
|
|
614
|
|
|
613
|
|
||
Other income, net
|
|
458
|
|
|
436
|
|
||
Total noninterest income
|
|
14,564
|
|
|
13,417
|
|
||
Noninterest expense
|
|
|
|
|
|
|
||
Compensation and employee benefits
|
|
25,512
|
|
|
24,440
|
|
||
Occupancy
|
|
4,670
|
|
|
4,280
|
|
||
Data processing
|
|
3,738
|
|
|
3,464
|
|
||
Services
|
|
2,426
|
|
|
3,047
|
|
||
Equipment
|
|
2,064
|
|
|
1,728
|
|
||
Office supplies, printing and postage
|
|
1,360
|
|
|
1,507
|
|
||
Marketing
|
|
990
|
|
|
645
|
|
||
FDIC insurance
|
|
626
|
|
|
713
|
|
||
Other expense
|
|
3,854
|
|
|
4,101
|
|
||
Total noninterest expense
|
|
45,240
|
|
|
43,925
|
|
||
Income before income taxes
|
|
26,162
|
|
|
24,500
|
|
||
Income taxes
|
|
5,323
|
|
|
5,540
|
|
||
Net income
|
|
$
|
20,839
|
|
|
$
|
18,960
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Interest and dividend income
|
|
$
|
68,488
|
|
|
$
|
62,002
|
|
Noninterest income
|
|
14,564
|
|
|
13,417
|
|
||
*Revenues-Bank
|
|
83,052
|
|
|
75,419
|
|
||
Total interest expense
|
|
4,780
|
|
|
3,453
|
|
||
Provision for loan losses
|
|
6,870
|
|
|
3,541
|
|
||
Noninterest expense
|
|
45,240
|
|
|
43,925
|
|
||
Less: Retirement defined benefits gain (expense)—other than service costs
|
|
40
|
|
|
(387
|
)
|
||
*Expenses-Bank
|
|
56,930
|
|
|
50,532
|
|
||
*Operating income-Bank
|
|
26,122
|
|
|
24,887
|
|
||
Add back: Retirement defined benefits gain (expense)—other than service costs
|
|
(40
|
)
|
|
387
|
|
||
Income before income taxes
|
|
$
|
26,162
|
|
|
$
|
24,500
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Net income
|
|
$
|
20,839
|
|
|
$
|
18,960
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
||
Net unrealized gains (losses) on available-for-sale investment securities:
|
|
|
|
|
|
|
||
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, net of (taxes) benefits of $(3,455) and $4,867, respectively
|
|
9,439
|
|
|
(13,297
|
)
|
||
Retirement benefit plans:
|
|
|
|
|
|
|
||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of (taxes) benefits of $(1,166) and $694, respectively
|
|
(3,187
|
)
|
|
1,222
|
|
||
Other comprehensive income (loss), net of taxes
|
|
6,252
|
|
|
(12,075
|
)
|
||
Comprehensive income
|
|
$
|
27,091
|
|
|
$
|
6,885
|
|
(in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and due from banks
|
|
|
|
|
$
|
136,585
|
|
|
|
|
|
$
|
122,059
|
|
||
Interest-bearing deposits
|
|
|
|
31,703
|
|
|
|
|
4,225
|
|
||||||
Investment securities
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale, at fair value
|
|
|
|
|
1,348,263
|
|
|
|
|
|
1,388,533
|
|
||||
Held-to-maturity, at amortized cost (fair value of $142,333 and $142,057, respectively)
|
|
|
|
140,203
|
|
|
|
|
141,875
|
|
||||||
Stock in Federal Home Loan Bank, at cost
|
|
|
|
|
9,434
|
|
|
|
|
|
9,958
|
|
||||
Loans held for investment
|
|
|
|
|
4,858,180
|
|
|
|
|
|
4,843,021
|
|
||||
Allowance for loan losses
|
|
|
|
|
(54,297
|
)
|
|
|
|
|
(52,119
|
)
|
||||
Net loans
|
|
|
|
|
4,803,883
|
|
|
|
|
|
4,790,902
|
|
||||
Loans held for sale, at lower of cost or fair value
|
|
|
|
|
8,136
|
|
|
|
|
|
1,805
|
|
||||
Other
|
|
|
|
|
501,970
|
|
|
|
|
|
486,347
|
|
||||
Goodwill
|
|
|
|
|
82,190
|
|
|
|
|
|
82,190
|
|
||||
Total assets
|
|
|
|
|
$
|
7,062,367
|
|
|
|
|
|
$
|
7,027,894
|
|
||
Liabilities and shareholder’s equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposit liabilities—noninterest-bearing
|
|
|
|
|
$
|
1,879,244
|
|
|
|
|
|
$
|
1,800,727
|
|
||
Deposit liabilities—interest-bearing
|
|
|
|
|
4,326,415
|
|
|
|
|
|
4,358,125
|
|
||||
Other borrowings
|
|
|
|
|
89,870
|
|
|
|
|
|
110,040
|
|
||||
Other
|
|
|
|
|
122,651
|
|
|
|
|
|
124,613
|
|
||||
Total liabilities
|
|
|
|
|
6,418,180
|
|
|
|
|
|
6,393,505
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock
|
|
|
|
|
1
|
|
|
|
|
|
1
|
|
||||
Additional paid-in capital
|
|
|
|
347,877
|
|
|
|
|
347,170
|
|
||||||
Retained earnings
|
|
|
|
|
328,125
|
|
|
|
|
|
325,286
|
|
||||
Accumulated other comprehensive loss, net of tax benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized losses on securities
|
|
$
|
(14,984
|
)
|
|
|
|
|
$
|
(24,423
|
)
|
|
|
|
||
Retirement benefit plans
|
|
(16,832
|
)
|
|
(31,816
|
)
|
|
(13,645
|
)
|
|
(38,068
|
)
|
||||
Total shareholder’s equity
|
|
|
|
|
644,187
|
|
|
|
|
|
634,389
|
|
||||
Total liabilities and shareholder’s equity
|
|
|
|
|
$
|
7,062,367
|
|
|
|
|
|
$
|
7,027,894
|
|
||
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bank-owned life insurance
|
|
|
|
|
$
|
150,705
|
|
|
|
|
|
$
|
151,172
|
|
||
Premises and equipment, net
|
|
|
|
|
208,309
|
|
|
|
|
|
214,415
|
|
||||
Accrued interest receivable
|
|
|
|
|
20,654
|
|
|
|
|
|
20,140
|
|
||||
Mortgage-servicing rights
|
|
|
|
|
7,897
|
|
|
|
|
|
8,062
|
|
||||
Low-income housing equity investments
|
|
|
|
65,428
|
|
|
|
|
67,626
|
|
||||||
Real estate acquired in settlement of loans, net
|
|
|
|
|
—
|
|
|
|
|
|
406
|
|
||||
Real estate held for sale
|
|
|
|
9,014
|
|
|
|
|
—
|
|
||||||
Other
|
|
|
|
|
39,963
|
|
|
|
|
|
24,526
|
|
||||
|
|
|
|
|
$
|
501,970
|
|
|
|
|
|
$
|
486,347
|
|
||
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued expenses
|
|
|
|
|
$
|
36,067
|
|
|
|
|
|
$
|
54,084
|
|
||
Federal and state income taxes payable
|
|
|
|
|
5,391
|
|
|
|
|
|
2,012
|
|
||||
Cashier’s checks
|
|
|
|
|
27,432
|
|
|
|
|
|
26,906
|
|
||||
Advance payments by borrowers
|
|
|
|
|
5,956
|
|
|
|
|
|
10,183
|
|
||||
Other
|
|
|
|
|
47,805
|
|
|
|
|
|
31,428
|
|
||||
|
|
|
|
|
$
|
122,651
|
|
|
|
|
|
$
|
124,613
|
|
|
|
Amortized cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Estimated fair
value
|
|
Gross unrealized losses
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
Less than 12 months
|
|
12 months or longer
|
||||||||||||||||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
Number of issues
|
|
Fair
value
|
|
Amount
|
|
Number of issues
|
|
Fair
value
|
|
Amount
|
||||||||||||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury and federal agency obligations
|
|
$
|
142,179
|
|
|
$
|
93
|
|
|
$
|
(1,428
|
)
|
|
$
|
140,844
|
|
|
2
|
|
|
$
|
10,022
|
|
|
$
|
(7
|
)
|
|
20
|
|
|
$
|
117,499
|
|
|
$
|
(1,421
|
)
|
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
|
1,149,167
|
|
|
1,318
|
|
|
(21,498
|
)
|
|
1,128,987
|
|
|
3
|
|
|
13,792
|
|
|
(10
|
)
|
|
161
|
|
|
1,010,168
|
|
|
(21,488
|
)
|
||||||||
Corporate bonds
|
|
49,417
|
|
|
1,045
|
|
|
—
|
|
|
50,462
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Mortgage revenue bonds
|
|
27,970
|
|
|
—
|
|
|
—
|
|
|
27,970
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
|
$
|
1,368,733
|
|
|
$
|
2,456
|
|
|
$
|
(22,926
|
)
|
|
$
|
1,348,263
|
|
|
5
|
|
|
$
|
23,814
|
|
|
$
|
(17
|
)
|
|
181
|
|
|
$
|
1,127,667
|
|
|
$
|
(22,909
|
)
|
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
|
$
|
140,203
|
|
|
$
|
2,528
|
|
|
$
|
(398
|
)
|
|
$
|
142,333
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
3
|
|
|
$
|
39,027
|
|
|
$
|
(398
|
)
|
|
|
$
|
140,203
|
|
|
$
|
2,528
|
|
|
$
|
(398
|
)
|
|
$
|
142,333
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
3
|
|
|
$
|
39,027
|
|
|
$
|
(398
|
)
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury and federal agency obligations
|
|
$
|
156,694
|
|
|
$
|
62
|
|
|
$
|
(2,407
|
)
|
|
$
|
154,349
|
|
|
5
|
|
|
$
|
25,882
|
|
|
$
|
(208
|
)
|
|
19
|
|
|
$
|
118,405
|
|
|
$
|
(2,199
|
)
|
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
|
1,192,169
|
|
|
789
|
|
|
(31,542
|
)
|
|
1,161,416
|
|
|
22
|
|
|
129,011
|
|
|
(1,330
|
)
|
|
145
|
|
|
947,890
|
|
|
(30,212
|
)
|
||||||||
Corporate bonds
|
|
49,398
|
|
|
103
|
|
|
(369
|
)
|
|
49,132
|
|
|
6
|
|
|
23,175
|
|
|
(369
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Mortgage revenue bonds
|
|
23,636
|
|
|
—
|
|
|
—
|
|
|
23,636
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
|
$
|
1,421,897
|
|
|
$
|
954
|
|
|
$
|
(34,318
|
)
|
|
$
|
1,388,533
|
|
|
33
|
|
|
$
|
178,068
|
|
|
$
|
(1,907
|
)
|
|
164
|
|
|
$
|
1,066,295
|
|
|
$
|
(32,411
|
)
|
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
|
$
|
141,875
|
|
|
$
|
1,446
|
|
|
$
|
(1,264
|
)
|
|
$
|
142,057
|
|
|
3
|
|
|
$
|
29,814
|
|
|
$
|
(400
|
)
|
|
2
|
|
|
$
|
31,505
|
|
|
$
|
(864
|
)
|
|
|
$
|
141,875
|
|
|
$
|
1,446
|
|
|
$
|
(1,264
|
)
|
|
$
|
142,057
|
|
|
3
|
|
|
$
|
29,814
|
|
|
$
|
(400
|
)
|
|
2
|
|
|
$
|
31,505
|
|
|
$
|
(864
|
)
|
March 31, 2019
|
|
Amortized cost
|
|
Fair value
|
||||
(in thousands)
|
|
|
|
|
||||
Available-for-sale
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
15,000
|
|
|
$
|
14,960
|
|
Due after one year through five years
|
|
133,142
|
|
|
133,294
|
|
||
Due after five years through ten years
|
|
55,997
|
|
|
55,595
|
|
||
Due after ten years
|
|
15,427
|
|
|
15,427
|
|
||
|
|
219,566
|
|
|
219,276
|
|
||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
|
1,149,167
|
|
|
1,128,987
|
|
||
Total available-for-sale securities
|
|
$
|
1,368,733
|
|
|
$
|
1,348,263
|
|
Held-to-maturity
|
|
|
|
|
||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
|
$
|
140,203
|
|
|
$
|
142,333
|
|
Total held-to-maturity securities
|
|
$
|
140,203
|
|
|
$
|
142,333
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
(in thousands)
|
|
|
|
|
|
||
Real estate:
|
|
|
|
|
|
||
Residential 1-4 family
|
$
|
2,159,886
|
|
|
$
|
2,143,397
|
|
Commercial real estate
|
737,489
|
|
|
748,398
|
|
||
Home equity line of credit
|
995,624
|
|
|
978,237
|
|
||
Residential land
|
12,941
|
|
|
13,138
|
|
||
Commercial construction
|
98,734
|
|
|
92,264
|
|
||
Residential construction
|
10,924
|
|
|
14,307
|
|
||
Total real estate
|
4,015,598
|
|
|
3,989,741
|
|
||
Commercial
|
576,235
|
|
|
587,891
|
|
||
Consumer
|
266,437
|
|
|
266,002
|
|
||
Total loans
|
4,858,270
|
|
|
4,843,634
|
|
||
Less: Deferred fees and discounts
|
(90
|
)
|
|
(613
|
)
|
||
Allowance for loan losses
|
(54,297
|
)
|
|
(52,119
|
)
|
||
Total loans, net
|
$
|
4,803,883
|
|
|
$
|
4,790,902
|
|
(in thousands)
|
|
Residential
1-4 family
|
|
Commercial real
estate
|
|
Home
equity line of credit |
|
Residential land
|
|
Commercial construction
|
|
Residential construction
|
|
Commercial loans
|
|
Consumer loans
|
|
Total
|
||||||||||||||||||
Three months ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Beginning balance
|
|
$
|
1,976
|
|
|
$
|
14,505
|
|
|
$
|
6,371
|
|
|
$
|
479
|
|
|
$
|
2,790
|
|
|
$
|
4
|
|
|
$
|
9,225
|
|
|
$
|
16,769
|
|
|
$
|
52,119
|
|
Charge-offs
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(618
|
)
|
|
(5,559
|
)
|
|
(6,191
|
)
|
|||||||||
Recoveries
|
|
609
|
|
|
—
|
|
|
5
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
180
|
|
|
698
|
|
|
1,499
|
|
|||||||||
Provision
|
|
(660
|
)
|
|
320
|
|
|
117
|
|
|
(61
|
)
|
|
53
|
|
|
(1
|
)
|
|
2,027
|
|
|
5,075
|
|
|
6,870
|
|
|||||||||
Ending balance
|
|
$
|
1,911
|
|
|
$
|
14,825
|
|
|
$
|
6,493
|
|
|
$
|
425
|
|
|
$
|
2,843
|
|
|
$
|
3
|
|
|
$
|
10,814
|
|
|
$
|
16,983
|
|
|
$
|
54,297
|
|
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Ending balance: individually evaluated for impairment
|
|
$
|
771
|
|
|
$
|
7
|
|
|
$
|
491
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,965
|
|
|
$
|
4
|
|
|
$
|
4,242
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
1,140
|
|
|
$
|
14,818
|
|
|
$
|
6,002
|
|
|
$
|
421
|
|
|
$
|
2,843
|
|
|
$
|
3
|
|
|
$
|
7,849
|
|
|
$
|
16,979
|
|
|
$
|
50,055
|
|
Financing Receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Ending balance
|
|
$
|
2,159,886
|
|
|
$
|
737,489
|
|
|
$
|
995,624
|
|
|
$
|
12,941
|
|
|
$
|
98,734
|
|
|
$
|
10,924
|
|
|
$
|
576,235
|
|
|
$
|
266,437
|
|
|
$
|
4,858,270
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
17,403
|
|
|
$
|
902
|
|
|
$
|
14,046
|
|
|
$
|
2,065
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,895
|
|
|
$
|
88
|
|
|
$
|
50,399
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
2,142,483
|
|
|
$
|
736,587
|
|
|
$
|
981,578
|
|
|
$
|
10,876
|
|
|
$
|
98,734
|
|
|
$
|
10,924
|
|
|
$
|
560,340
|
|
|
$
|
266,349
|
|
|
$
|
4,807,871
|
|
Three months ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Beginning balance
|
|
$
|
2,902
|
|
|
$
|
15,796
|
|
|
$
|
7,522
|
|
|
$
|
896
|
|
|
$
|
4,671
|
|
|
$
|
12
|
|
|
$
|
10,851
|
|
|
$
|
10,987
|
|
|
$
|
53,637
|
|
Charge-offs
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
(602
|
)
|
|
(4,232
|
)
|
|
(4,873
|
)
|
|||||||||
Recoveries
|
|
54
|
|
|
—
|
|
|
14
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
1,170
|
|
|
347
|
|
|
1,590
|
|
|||||||||
Provision
|
|
(400
|
)
|
|
163
|
|
|
446
|
|
|
(219
|
)
|
|
(310
|
)
|
|
(8
|
)
|
|
(1,064
|
)
|
|
4,933
|
|
|
3,541
|
|
|||||||||
Ending balance
|
|
$
|
2,525
|
|
|
$
|
15,959
|
|
|
$
|
7,982
|
|
|
$
|
674
|
|
|
$
|
4,361
|
|
|
$
|
4
|
|
|
$
|
10,355
|
|
|
$
|
12,035
|
|
|
$
|
53,895
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Ending balance: individually evaluated for impairment
|
|
$
|
876
|
|
|
$
|
7
|
|
|
$
|
701
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
628
|
|
|
$
|
4
|
|
|
$
|
2,222
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
1,100
|
|
|
$
|
14,498
|
|
|
$
|
5,670
|
|
|
$
|
473
|
|
|
$
|
2,790
|
|
|
$
|
4
|
|
|
$
|
8,597
|
|
|
$
|
16,765
|
|
|
$
|
49,897
|
|
Financing Receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Ending balance
|
|
$
|
2,143,397
|
|
|
$
|
748,398
|
|
|
$
|
978,237
|
|
|
$
|
13,138
|
|
|
$
|
92,264
|
|
|
$
|
14,307
|
|
|
$
|
587,891
|
|
|
$
|
266,002
|
|
|
$
|
4,843,634
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
16,494
|
|
|
$
|
915
|
|
|
$
|
14,800
|
|
|
$
|
2,059
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,340
|
|
|
$
|
89
|
|
|
$
|
39,697
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
2,126,903
|
|
|
$
|
747,483
|
|
|
$
|
963,437
|
|
|
$
|
11,079
|
|
|
$
|
92,264
|
|
|
$
|
14,307
|
|
|
$
|
582,551
|
|
|
$
|
265,913
|
|
|
$
|
4,803,937
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
(in thousands)
|
|
Commercial
real estate
|
|
Commercial
construction
|
|
Commercial
|
|
Total
|
|
Commercial
real estate
|
|
Commercial
construction
|
|
Commercial
|
|
Total
|
||||||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pass
|
|
$
|
659,853
|
|
|
$
|
96,445
|
|
|
$
|
534,127
|
|
|
$
|
1,290,425
|
|
|
$
|
658,288
|
|
|
$
|
89,974
|
|
|
$
|
547,640
|
|
|
$
|
1,295,902
|
|
Special mention
|
|
7,960
|
|
|
—
|
|
|
11,148
|
|
|
19,108
|
|
|
32,871
|
|
|
—
|
|
|
11,598
|
|
|
44,469
|
|
||||||||
Substandard
|
|
69,676
|
|
|
2,289
|
|
|
30,960
|
|
|
102,925
|
|
|
57,239
|
|
|
2,290
|
|
|
28,653
|
|
|
88,182
|
|
||||||||
Doubtful
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
|
$
|
737,489
|
|
|
$
|
98,734
|
|
|
$
|
576,235
|
|
|
$
|
1,412,458
|
|
|
$
|
748,398
|
|
|
$
|
92,264
|
|
|
$
|
587,891
|
|
|
$
|
1,428,553
|
|
(in thousands)
|
|
30-59
days
past due
|
|
60-89
days
past due
|
|
Greater
than
90 days
|
|
Total
past due
|
|
Current
|
|
Total
financing
receivables
|
|
Recorded
investment>
90 days and
accruing
|
||||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
2,625
|
|
|
$
|
2,954
|
|
|
$
|
3,866
|
|
|
$
|
9,445
|
|
|
$
|
2,150,441
|
|
|
$
|
2,159,886
|
|
|
$
|
—
|
|
Commercial real estate
|
|
2,225
|
|
|
—
|
|
|
—
|
|
|
2,225
|
|
|
735,264
|
|
|
737,489
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
1,244
|
|
|
251
|
|
|
2,726
|
|
|
4,221
|
|
|
991,403
|
|
|
995,624
|
|
|
—
|
|
|||||||
Residential land
|
|
818
|
|
|
488
|
|
|
9
|
|
|
1,315
|
|
|
11,626
|
|
|
12,941
|
|
|
—
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98,734
|
|
|
98,734
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,924
|
|
|
10,924
|
|
|
—
|
|
|||||||
Commercial
|
|
3,167
|
|
|
570
|
|
|
337
|
|
|
4,074
|
|
|
572,161
|
|
|
576,235
|
|
|
—
|
|
|||||||
Consumer
|
|
4,173
|
|
|
2,551
|
|
|
2,458
|
|
|
9,182
|
|
|
257,255
|
|
|
266,437
|
|
|
—
|
|
|||||||
Total loans
|
|
$
|
14,252
|
|
|
$
|
6,814
|
|
|
$
|
9,396
|
|
|
$
|
30,462
|
|
|
$
|
4,827,808
|
|
|
$
|
4,858,270
|
|
|
$
|
—
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential 1-4 family
|
|
$
|
3,757
|
|
|
$
|
2,773
|
|
|
$
|
2,339
|
|
|
$
|
8,869
|
|
|
$
|
2,134,528
|
|
|
$
|
2,143,397
|
|
|
$
|
—
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
748,398
|
|
|
748,398
|
|
|
—
|
|
|||||||
Home equity line of credit
|
|
1,139
|
|
|
681
|
|
|
2,720
|
|
|
4,540
|
|
|
973,697
|
|
|
978,237
|
|
|
—
|
|
|||||||
Residential land
|
|
9
|
|
|
—
|
|
|
319
|
|
|
328
|
|
|
12,810
|
|
|
13,138
|
|
|
—
|
|
|||||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
92,264
|
|
|
92,264
|
|
|
—
|
|
|||||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,307
|
|
|
14,307
|
|
|
—
|
|
|||||||
Commercial
|
|
315
|
|
|
281
|
|
|
548
|
|
|
1,144
|
|
|
586,747
|
|
|
587,891
|
|
|
—
|
|
|||||||
Consumer
|
|
5,220
|
|
|
3,166
|
|
|
2,702
|
|
|
11,088
|
|
|
254,914
|
|
|
266,002
|
|
|
—
|
|
|||||||
Total loans
|
|
$
|
10,440
|
|
|
$
|
6,901
|
|
|
$
|
8,628
|
|
|
$
|
25,969
|
|
|
$
|
4,817,665
|
|
|
$
|
4,843,634
|
|
|
$
|
—
|
|
(in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Real estate:
|
|
|
|
|
|
|
||
Residential 1-4 family
|
|
$
|
13,878
|
|
|
$
|
12,037
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
||
Home equity line of credit
|
|
6,888
|
|
|
6,348
|
|
||
Residential land
|
|
452
|
|
|
436
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
14,447
|
|
|
4,278
|
|
||
Consumer
|
|
4,542
|
|
|
4,196
|
|
||
Total nonaccrual loans
|
|
$
|
40,207
|
|
|
$
|
27,295
|
|
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
|
|
$
|
10,145
|
|
|
$
|
10,194
|
|
Commercial real estate
|
|
902
|
|
|
915
|
|
||
Home equity line of credit
|
|
11,013
|
|
|
11,597
|
|
||
Residential land
|
|
1,613
|
|
|
1,622
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
1,622
|
|
|
1,527
|
|
||
Consumer
|
|
61
|
|
|
62
|
|
||
Total troubled debt restructured loans not included above
|
|
$
|
25,356
|
|
|
$
|
25,917
|
|
|
|
March 31, 2019
|
|
Three months ended March 31, 2019
|
||||||||||||||||
(in thousands)
|
|
Recorded
investment
|
|
Unpaid
principal
balance
|
|
Related
Allowance
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
||||||||||
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
9,208
|
|
|
$
|
9,833
|
|
|
$
|
—
|
|
|
$
|
7,991
|
|
|
$
|
160
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
|
2,508
|
|
|
2,778
|
|
|
—
|
|
|
2,534
|
|
|
12
|
|
|||||
Residential land
|
|
2,036
|
|
|
2,235
|
|
|
—
|
|
|
2,036
|
|
|
26
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
4,736
|
|
|
5,897
|
|
|
—
|
|
|
3,973
|
|
|
—
|
|
|||||
Consumer
|
|
31
|
|
|
31
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|||||
|
|
$
|
18,519
|
|
|
$
|
20,774
|
|
|
$
|
—
|
|
|
$
|
16,565
|
|
|
$
|
198
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
8,195
|
|
|
$
|
8,248
|
|
|
$
|
771
|
|
|
$
|
8,394
|
|
|
$
|
83
|
|
Commercial real estate
|
|
902
|
|
|
902
|
|
|
7
|
|
|
906
|
|
|
10
|
|
|||||
Home equity line of credit
|
|
11,538
|
|
|
11,577
|
|
|
491
|
|
|
11,823
|
|
|
130
|
|
|||||
Residential land
|
|
29
|
|
|
29
|
|
|
4
|
|
|
29
|
|
|
—
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
11,159
|
|
|
11,159
|
|
|
2,965
|
|
|
4,750
|
|
|
26
|
|
|||||
Consumer
|
|
57
|
|
|
57
|
|
|
4
|
|
|
57
|
|
|
1
|
|
|||||
|
|
$
|
31,880
|
|
|
$
|
31,972
|
|
|
$
|
4,242
|
|
|
$
|
25,959
|
|
|
$
|
250
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
17,403
|
|
|
$
|
18,081
|
|
|
$
|
771
|
|
|
$
|
16,385
|
|
|
$
|
243
|
|
Commercial real estate
|
|
902
|
|
|
902
|
|
|
7
|
|
|
906
|
|
|
10
|
|
|||||
Home equity line of credit
|
|
14,046
|
|
|
14,355
|
|
|
491
|
|
|
14,357
|
|
|
142
|
|
|||||
Residential land
|
|
2,065
|
|
|
2,264
|
|
|
4
|
|
|
2,065
|
|
|
26
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
15,895
|
|
|
17,056
|
|
|
2,965
|
|
|
8,723
|
|
|
26
|
|
|||||
Consumer
|
|
88
|
|
|
88
|
|
|
4
|
|
|
88
|
|
|
1
|
|
|||||
|
|
$
|
50,399
|
|
|
$
|
52,746
|
|
|
$
|
4,242
|
|
|
$
|
42,524
|
|
|
$
|
448
|
|
|
|
December 31, 2018
|
|
Three months ended March 31, 2018
|
||||||||||||||||
(in thousands)
|
|
Recorded
investment
|
|
Unpaid
principal
balance
|
|
Related
allowance
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
||||||||||
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
7,822
|
|
|
$
|
8,333
|
|
|
$
|
—
|
|
|
$
|
8,496
|
|
|
$
|
107
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
|
2,743
|
|
|
3,004
|
|
|
—
|
|
|
1,700
|
|
|
5
|
|
|||||
Residential land
|
|
2,030
|
|
|
2,228
|
|
|
—
|
|
|
1,168
|
|
|
5
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
3,722
|
|
|
4,775
|
|
|
—
|
|
|
2,357
|
|
|
10
|
|
|||||
Consumer
|
|
32
|
|
|
32
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|||||
|
|
$
|
16,349
|
|
|
$
|
18,372
|
|
|
$
|
—
|
|
|
$
|
13,728
|
|
|
$
|
127
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
8,672
|
|
|
$
|
8,875
|
|
|
$
|
876
|
|
|
$
|
9,129
|
|
|
$
|
93
|
|
Commercial real estate
|
|
915
|
|
|
915
|
|
|
7
|
|
|
1,008
|
|
|
11
|
|
|||||
Home equity line of credit
|
|
12,057
|
|
|
12,086
|
|
|
701
|
|
|
7,741
|
|
|
81
|
|
|||||
Residential land
|
|
29
|
|
|
29
|
|
|
6
|
|
|
77
|
|
|
2
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
1,618
|
|
|
1,618
|
|
|
628
|
|
|
1,957
|
|
|
36
|
|
|||||
Consumer
|
|
57
|
|
|
57
|
|
|
4
|
|
|
58
|
|
|
1
|
|
|||||
|
|
$
|
23,348
|
|
|
$
|
23,580
|
|
|
$
|
2,222
|
|
|
$
|
19,970
|
|
|
$
|
224
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential 1-4 family
|
|
$
|
16,494
|
|
|
$
|
17,208
|
|
|
$
|
876
|
|
|
$
|
17,625
|
|
|
$
|
200
|
|
Commercial real estate
|
|
915
|
|
|
915
|
|
|
7
|
|
|
1,008
|
|
|
11
|
|
|||||
Home equity line of credit
|
|
14,800
|
|
|
15,090
|
|
|
701
|
|
|
9,441
|
|
|
86
|
|
|||||
Residential land
|
|
2,059
|
|
|
2,257
|
|
|
6
|
|
|
1,245
|
|
|
7
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
|
5,340
|
|
|
6,393
|
|
|
628
|
|
|
4,314
|
|
|
46
|
|
|||||
Consumer
|
|
89
|
|
|
89
|
|
|
4
|
|
|
65
|
|
|
1
|
|
|||||
|
|
$
|
39,697
|
|
|
$
|
41,952
|
|
|
$
|
2,222
|
|
|
$
|
33,698
|
|
|
$
|
351
|
|
*
|
Since loan was classified as impaired.
|
Loans modified as a TDR
|
|
Three months ended March 31, 2019
|
|
Three months ended March 31, 2018
|
||||||||||||||||||
(dollars in thousands)
|
|
Number of contracts
|
|
Outstanding recorded
investment
(as of period end)1
|
|
Related allowance
(as of period end)
|
|
Number of contracts
|
|
Outstanding recorded
investment (as of period end)1 |
|
Related allowance
(as of period end) |
||||||||||
Troubled debt restructurings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Residential 1-4 family
|
|
8
|
|
|
$
|
1,048
|
|
|
$
|
5
|
|
|
1
|
|
|
$
|
345
|
|
|
$
|
107
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Home equity line of credit
|
|
2
|
|
|
264
|
|
|
23
|
|
|
18
|
|
|
2,155
|
|
|
417
|
|
||||
Residential land
|
|
1
|
|
|
335
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial
|
|
1
|
|
|
195
|
|
|
17
|
|
|
5
|
|
|
2,213
|
|
|
—
|
|
||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
12
|
|
|
$
|
1,842
|
|
|
$
|
45
|
|
|
24
|
|
|
$
|
4,713
|
|
|
$
|
524
|
|
|
|
Three months ended March 31, 2019
|
|
Three months ended March 31, 2018
|
||||||||||
(dollars in thousands)
|
|
Number of contracts
|
|
Outstanding
recorded
investment (as of period end)1 |
|
Number of contracts
|
|
Outstanding
recorded
investment (as of period end)1 |
||||||
TDRs that defaulted during the period within twelve months of their modification date
|
|
|
|
|
|
|
|
|
|
|
||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
||||
Residential 1-4 family
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
49
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Home equity line of credit
|
|
—
|
|
|
—
|
|
|
1
|
|
|
86
|
|
||
Residential land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Commercial
|
|
1
|
|
|
19
|
|
|
—
|
|
|
—
|
|
||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
|
|
1
|
|
|
$
|
19
|
|
|
2
|
|
|
$
|
135
|
|
1
|
The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included.
|
(in thousands)
|
|
Gross
carrying amount |
|
Accumulated amortization
|
|
Valuation allowance
|
|
Net
carrying amount |
||||||||
March 31, 2019
|
|
$
|
18,786
|
|
|
$
|
(10,889
|
)
|
|
$
|
—
|
|
|
$
|
7,897
|
|
December 31, 2018
|
|
18,556
|
|
|
(10,494
|
)
|
|
—
|
|
|
8,062
|
|
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Mortgage servicing rights
|
|
|
|
|
||||
Beginning balance
|
|
$
|
8,062
|
|
|
$
|
8,639
|
|
Amount capitalized
|
|
230
|
|
|
335
|
|
||
Amortization
|
|
(395
|
)
|
|
(433
|
)
|
||
Other-than-temporary impairment
|
|
—
|
|
|
—
|
|
||
Carrying amount before valuation allowance
|
|
7,897
|
|
|
8,541
|
|
||
Valuation allowance for mortgage servicing rights
|
|
|
|
|
||||
Beginning balance
|
|
—
|
|
|
—
|
|
||
Provision (recovery)
|
|
—
|
|
|
—
|
|
||
Other-than-temporary impairment
|
|
—
|
|
|
—
|
|
||
Ending balance
|
|
—
|
|
|
—
|
|
||
Net carrying value of mortgage servicing rights
|
|
$
|
7,897
|
|
|
$
|
8,541
|
|
(dollars in thousands)
|
|
March 31, 2019
|
|
|
December 31, 2018
|
|
||
Unpaid principal balance
|
|
$
|
1,172,573
|
|
|
$
|
1,188,514
|
|
Weighted average note rate
|
|
3.99
|
%
|
|
3.98
|
%
|
||
Weighted average discount rate
|
|
10.0
|
%
|
|
10.0
|
%
|
||
Weighted average prepayment speed
|
|
7.4
|
%
|
|
6.5
|
%
|
(dollars in thousands)
|
|
March 31, 2019
|
|
|
December 31, 2018
|
|
||
Prepayment rate:
|
|
|
|
|
||||
25 basis points adverse rate change
|
|
$
|
(421
|
)
|
|
$
|
(250
|
)
|
50 basis points adverse rate change
|
|
(962
|
)
|
|
(566
|
)
|
||
Discount rate:
|
|
|
|
|
||||
25 basis points adverse rate change
|
|
(126
|
)
|
|
(139
|
)
|
||
50 basis points adverse rate change
|
|
(251
|
)
|
|
(275
|
)
|
(in millions)
|
|
Gross amount of
recognized liabilities
|
|
Gross amount offset in
the Balance Sheets
|
|
Net amount of liabilities presented
in the Balance Sheets
|
||||||
Repurchase agreements
|
|
|
|
|
|
|
|
|
|
|||
March 31, 2019
|
|
$
|
65
|
|
|
$
|
—
|
|
|
$
|
65
|
|
December 31, 2018
|
|
65
|
|
|
—
|
|
|
65
|
|
|
|
Gross amount not offset in the Balance Sheets
|
||||||||||
(in millions)
|
|
Net amount of liabilities presented
in the Balance Sheets
|
|
Financial
instruments
|
|
Cash
collateral
pledged
|
||||||
Commercial account holders
|
|
|
|
|
|
|
||||||
March 31, 2019
|
|
$
|
65
|
|
|
$
|
90
|
|
|
$
|
—
|
|
December 31, 2018
|
|
65
|
|
|
92
|
|
|
—
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
(in thousands)
|
|
Notional amount
|
|
Fair value
|
|
Notional amount
|
|
Fair value
|
||||||||
Interest rate lock commitments
|
|
$
|
31,406
|
|
|
$
|
462
|
|
|
$
|
10,180
|
|
|
$
|
91
|
|
Forward commitments
|
|
34,165
|
|
|
(161
|
)
|
|
10,132
|
|
|
(43
|
)
|
Derivative Financial Instruments Not Designated as Hedging Instruments 1
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
(in thousands)
|
|
Asset derivatives
|
|
Liability
derivatives
|
|
Asset derivatives
|
|
Liability
derivatives |
||||||||
Interest rate lock commitments
|
|
$
|
463
|
|
|
$
|
1
|
|
|
$
|
91
|
|
|
$
|
—
|
|
Forward commitments
|
|
9
|
|
|
170
|
|
|
—
|
|
|
43
|
|
||||
|
|
$
|
472
|
|
|
$
|
171
|
|
|
$
|
91
|
|
|
$
|
43
|
|
Derivative Financial Instruments Not Designated as Hedging Instruments
|
|
Location of net gains (losses) recognized in the Statements of Income
|
|
Three months ended March 31
|
||||||
(in thousands)
|
|
|
2019
|
|
2018
|
|||||
Interest rate lock commitments
|
|
Mortgage banking income
|
|
$
|
371
|
|
|
$
|
124
|
|
Forward commitments
|
|
Mortgage banking income
|
|
(118
|
)
|
|
(36
|
)
|
||
|
|
|
|
$
|
253
|
|
|
$
|
88
|
|
|
HEI consolidated
|
|
Hawaiian Electric consolidated
|
||||||||||||||||
Three months ended March 31, 2019
(in thousands)
|
Other leases
|
PPAs classified as leases
|
Total
|
|
Other leases
|
PPAs classified as leases
|
Total
|
||||||||||||
Operating lease cost
|
$
|
2,684
|
|
$
|
15,478
|
|
$
|
18,162
|
|
|
$
|
1,486
|
|
$
|
15,478
|
|
$
|
16,964
|
|
Variable lease cost
|
2,804
|
|
41,280
|
|
44,084
|
|
|
2,086
|
|
41,280
|
|
43,366
|
|
||||||
Total lease cost
|
$
|
5,488
|
|
$
|
56,758
|
|
$
|
62,246
|
|
|
$
|
3,572
|
|
$
|
56,758
|
|
$
|
60,330
|
|
Other information
|
|
|
|
|
|
|
|
||||||||||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases
|
$
|
2,586
|
|
$
|
15,037
|
|
$
|
17,623
|
|
|
$
|
1,397
|
|
$
|
15,037
|
|
$
|
16,434
|
|
Weighted-average remaining lease term—operating leases (in years)
|
6.7
|
|
3.5
|
|
4.0
|
|
|
5.0
|
|
3.5
|
|
3.6
|
|
||||||
Weighted-average discount rate—operating leases
|
3.71
|
%
|
4.08
|
%
|
4.01
|
%
|
|
4.17
|
%
|
4.08
|
%
|
4.09
|
%
|
|
HEI consolidated
|
|
Hawaiian Electric consolidated
|
||||||||||||||||
(in millions)
|
Other leases
|
PPAs classified as leases
|
Total
|
|
Other leases
|
PPAs classified as leases
|
Total
|
||||||||||||
2019 (remaining months)
|
$
|
8
|
|
$
|
48
|
|
$
|
56
|
|
|
$
|
4
|
|
$
|
48
|
|
$
|
52
|
|
2020
|
10
|
|
63
|
|
73
|
|
|
6
|
|
63
|
|
69
|
|
||||||
2021
|
8
|
|
63
|
|
71
|
|
|
5
|
|
63
|
|
68
|
|
||||||
2022
|
5
|
|
42
|
|
47
|
|
|
2
|
|
42
|
|
44
|
|
||||||
2023
|
4
|
|
—
|
|
4
|
|
|
2
|
|
—
|
|
2
|
|
||||||
Thereafter
|
11
|
|
—
|
|
11
|
|
|
3
|
|
—
|
|
3
|
|
||||||
Total lease payments
|
46
|
|
216
|
|
262
|
|
|
22
|
|
216
|
|
238
|
|
||||||
Less: Imputed interest
|
(6
|
)
|
(15
|
)
|
(21
|
)
|
|
(2
|
)
|
(15
|
)
|
(17
|
)
|
||||||
Total present value of lease payments
|
$
|
40
|
|
$
|
201
|
|
$
|
241
|
|
|
$
|
20
|
|
$
|
201
|
|
$
|
221
|
|
|
HEI consolidated
|
|
Hawaiian Electric consolidated
|
||||||||||||||||
(in millions)
|
Other leases
|
PPAs classified as leases
|
Total
|
|
Other leases
|
PPAs classified as leases
|
Total
|
||||||||||||
2019
|
$
|
11
|
|
$
|
63
|
|
$
|
74
|
|
|
$
|
6
|
|
$
|
63
|
|
$
|
69
|
|
2020
|
9
|
|
63
|
|
72
|
|
|
6
|
|
63
|
|
69
|
|
||||||
2021
|
8
|
|
63
|
|
71
|
|
|
5
|
|
63
|
|
68
|
|
||||||
2022
|
5
|
|
42
|
|
47
|
|
|
2
|
|
42
|
|
44
|
|
||||||
2023
|
4
|
|
—
|
|
4
|
|
|
2
|
|
—
|
|
2
|
|
||||||
Thereafter
|
12
|
|
—
|
|
12
|
|
|
3
|
|
—
|
|
3
|
|
||||||
Total lease payments
|
$
|
49
|
|
$
|
231
|
|
$
|
280
|
|
|
$
|
24
|
|
$
|
231
|
|
$
|
255
|
|
|
HEI Consolidated
|
|
Hawaiian Electric Consolidated
|
||||||||||||||||
(in thousands)
|
Net unrealized gains (losses) on securities
|
|
Unrealized gains (losses) on derivatives
|
|
Retirement benefit plans
|
|
AOCI
|
|
AOCI-Retirement benefit plans
|
||||||||||
Balance, December 31, 2018
|
$
|
(24,423
|
)
|
|
$
|
(436
|
)
|
|
$
|
(25,751
|
)
|
|
$
|
(50,610
|
)
|
|
$
|
99
|
|
Current period other comprehensive income (loss)
|
9,439
|
|
|
(403
|
)
|
|
205
|
|
|
9,241
|
|
|
24
|
|
|||||
Balance, March 31, 2019
|
$
|
(14,984
|
)
|
|
$
|
(839
|
)
|
|
$
|
(25,546
|
)
|
|
$
|
(41,369
|
)
|
|
$
|
123
|
|
Balance, December 31, 2017
|
$
|
(14,951
|
)
|
|
$
|
—
|
|
|
$
|
(26,990
|
)
|
|
$
|
(41,941
|
)
|
|
$
|
(1,219
|
)
|
Current period other comprehensive income (loss)
|
(13,297
|
)
|
|
—
|
|
|
524
|
|
|
(12,773
|
)
|
|
31
|
|
|||||
Balance, March 31, 2018
|
$
|
(28,248
|
)
|
|
$
|
—
|
|
|
$
|
(26,466
|
)
|
|
$
|
(54,714
|
)
|
|
$
|
(1,188
|
)
|
|
|
Amount reclassified from AOCI
|
|
|
||||||
|
|
Three months ended March 31
|
|
Affected line item in the
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
|
Statements of Income / Balance Sheets
|
||||
HEI consolidated
|
|
|
|
|
|
|
||||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost
|
|
$
|
2,503
|
|
|
$
|
5,146
|
|
|
See Note 9 for additional details
|
Impact of D&Os of the PUC included in regulatory assets
|
|
(2,298
|
)
|
|
(4,622
|
)
|
|
See Note 9 for additional details
|
||
Total reclassifications
|
|
$
|
205
|
|
|
$
|
524
|
|
|
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
||||
Retirement benefit plans:
|
|
|
|
|
|
|
|
|||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost
|
|
$
|
2,322
|
|
|
$
|
4,653
|
|
|
See Note 9 for additional details
|
Impact of D&Os of the PUC included in regulatory assets
|
|
(2,298
|
)
|
|
(4,622
|
)
|
|
See Note 9 for additional details
|
||
Total reclassifications
|
|
$
|
24
|
|
|
$
|
31
|
|
|
|
|
|
Three months ended March 31
|
||||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||||||||||||
(in thousands)
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
||||||||||||||||
Revenues from contracts with customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Electric energy sales - residential
|
|
$
|
175,745
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
175,745
|
|
|
$
|
178,589
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
178,589
|
|
Electric energy sales - commercial
|
|
187,408
|
|
|
—
|
|
|
—
|
|
|
187,408
|
|
|
188,998
|
|
|
—
|
|
|
—
|
|
|
188,998
|
|
||||||||
Electric energy sales - large light and power
|
|
198,926
|
|
|
—
|
|
|
—
|
|
|
198,926
|
|
|
192,321
|
|
|
—
|
|
|
—
|
|
|
192,321
|
|
||||||||
Electric energy sales - other
|
|
4,078
|
|
|
—
|
|
|
—
|
|
|
4,078
|
|
|
4,060
|
|
|
—
|
|
|
—
|
|
|
4,060
|
|
||||||||
Bank fees
|
|
—
|
|
|
11,233
|
|
|
—
|
|
|
11,233
|
|
|
—
|
|
|
11,497
|
|
|
—
|
|
|
11,497
|
|
||||||||
Total revenues from contracts with customers
|
|
566,157
|
|
|
11,233
|
|
|
—
|
|
|
577,390
|
|
|
563,968
|
|
|
11,497
|
|
|
—
|
|
|
575,465
|
|
||||||||
Revenues from other sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Regulatory revenue
|
|
6,207
|
|
|
—
|
|
|
—
|
|
|
6,207
|
|
|
4,750
|
|
|
—
|
|
|
—
|
|
|
4,750
|
|
||||||||
Bank interest and dividend income
|
|
—
|
|
|
68,488
|
|
|
—
|
|
|
68,488
|
|
|
—
|
|
|
62,002
|
|
|
—
|
|
|
62,002
|
|
||||||||
Other bank noninterest income
|
|
—
|
|
|
3,331
|
|
|
—
|
|
|
3,331
|
|
|
—
|
|
|
1,920
|
|
|
—
|
|
|
1,920
|
|
||||||||
Other
|
|
6,131
|
|
|
—
|
|
|
68
|
|
|
6,199
|
|
|
1,709
|
|
|
—
|
|
|
28
|
|
|
1,737
|
|
||||||||
Total revenues from other sources
|
|
12,338
|
|
|
71,819
|
|
|
68
|
|
|
84,225
|
|
|
6,459
|
|
|
63,922
|
|
|
28
|
|
|
70,409
|
|
||||||||
Total revenues
|
|
$
|
578,495
|
|
|
$
|
83,052
|
|
|
$
|
68
|
|
|
$
|
661,615
|
|
|
$
|
570,427
|
|
|
$
|
75,419
|
|
|
$
|
28
|
|
|
$
|
645,874
|
|
Timing of revenue recognition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Services/goods transferred at a point in time
|
|
$
|
—
|
|
|
$
|
11,233
|
|
|
$
|
—
|
|
|
$
|
11,233
|
|
|
$
|
—
|
|
|
$
|
11,497
|
|
|
$
|
—
|
|
|
$
|
11,497
|
|
Services/goods transferred over time
|
|
566,157
|
|
|
—
|
|
|
—
|
|
|
566,157
|
|
|
563,968
|
|
|
—
|
|
|
—
|
|
|
563,968
|
|
||||||||
Total revenues from contracts with customers
|
|
$
|
566,157
|
|
|
$
|
11,233
|
|
|
$
|
—
|
|
|
$
|
577,390
|
|
|
$
|
563,968
|
|
|
$
|
11,497
|
|
|
$
|
—
|
|
|
$
|
575,465
|
|
|
|
Three months ended March 31
|
||||||||||||||
|
|
Pension benefits
|
|
Other benefits
|
||||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
||||||||
Service cost
|
|
$
|
15,382
|
|
|
$
|
17,113
|
|
|
$
|
541
|
|
|
$
|
669
|
|
Interest cost
|
|
21,033
|
|
|
19,234
|
|
|
1,997
|
|
|
1,931
|
|
||||
Expected return on plan assets
|
|
(27,998
|
)
|
|
(27,254
|
)
|
|
(3,086
|
)
|
|
(3,192
|
)
|
||||
Amortization of net prior service gain
|
|
(11
|
)
|
|
(10
|
)
|
|
(452
|
)
|
|
(452
|
)
|
||||
Amortization of net actuarial (gains) losses
|
|
3,839
|
|
|
7,395
|
|
|
(3
|
)
|
|
(2
|
)
|
||||
Net periodic pension/benefit cost (return)
|
|
12,245
|
|
|
16,478
|
|
|
(1,003
|
)
|
|
(1,046
|
)
|
||||
Impact of PUC D&Os
|
|
12,279
|
|
|
2,657
|
|
|
811
|
|
|
1,071
|
|
||||
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
|
|
$
|
24,524
|
|
|
$
|
19,135
|
|
|
$
|
(192
|
)
|
|
$
|
25
|
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
||||||||
Service cost
|
|
$
|
15,001
|
|
|
$
|
16,673
|
|
|
$
|
537
|
|
|
$
|
664
|
|
Interest cost
|
|
19,414
|
|
|
17,710
|
|
|
1,917
|
|
|
1,859
|
|
||||
Expected return on plan assets
|
|
(26,164
|
)
|
|
(25,607
|
)
|
|
(3,035
|
)
|
|
(3,140
|
)
|
||||
Amortization of net prior service (gain) cost
|
|
2
|
|
|
2
|
|
|
(451
|
)
|
|
(451
|
)
|
||||
Amortization of net actuarial loss
|
|
3,576
|
|
|
6,710
|
|
|
—
|
|
|
—
|
|
||||
Net periodic pension/benefit cost (return)
|
|
11,829
|
|
|
15,488
|
|
|
(1,032
|
)
|
|
(1,068
|
)
|
||||
Impact of PUC D&Os
|
|
12,279
|
|
|
2,657
|
|
|
811
|
|
|
1,071
|
|
||||
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
|
|
$
|
24,108
|
|
|
$
|
18,145
|
|
|
$
|
(221
|
)
|
|
$
|
3
|
|
|
|
Three months ended March 31
|
||||||
(in millions)
|
|
2019
|
|
2018
|
||||
HEI consolidated
|
|
|
|
|
||||
Share-based compensation expense 1
|
|
$
|
2.2
|
|
|
$
|
1.7
|
|
Income tax benefit
|
|
0.3
|
|
|
0.2
|
|
||
Hawaiian Electric consolidated
|
|
|
|
|
||||
Share-based compensation expense 1
|
|
0.8
|
|
|
0.6
|
|
||
Income tax benefit
|
|
0.1
|
|
|
0.1
|
|
1
|
For the three months ended March 31, 2019 and 2018, the Company has not capitalized any share-based compensation.
|
|
|
Three months ended March 31
|
||||||
(dollars in thousands)
|
|
2019
|
|
2018
|
||||
Shares granted
|
|
—
|
|
|
1,074
|
|
||
Fair value
|
|
$
|
—
|
|
|
$
|
39
|
|
Income tax benefit
|
|
—
|
|
|
10
|
|
|
|
Three months ended March 31
|
||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||
Outstanding, beginning of period
|
|
200,358
|
|
|
$
|
33.05
|
|
|
197,047
|
|
|
$
|
31.53
|
|
||
Granted
|
|
94,559
|
|
|
37.68
|
|
|
88,905
|
|
|
34.10
|
|
||||
Vested
|
|
(76,712
|
)
|
|
32.61
|
|
|
(75,235
|
)
|
|
30.55
|
|
||||
Forfeited
|
|
(6,980
|
)
|
|
33.18
|
|
|
(2,629
|
)
|
|
33.09
|
|
||||
Outstanding, end of period
|
|
211,225
|
|
|
$
|
35.28
|
|
|
208,088
|
|
|
$
|
32.97
|
|
||
Total weighted-average grant-date fair value of shares granted (in millions)
|
|
$
|
3.6
|
|
|
|
|
$
|
3.0
|
|
|
|
(1)
|
Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.
|
|
|
Three months ended March 31
|
||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||
Outstanding, beginning of period
|
|
65,578
|
|
|
$
|
38.81
|
|
|
32,904
|
|
|
$
|
39.51
|
|
||
Granted
|
|
34,647
|
|
|
41.07
|
|
|
35,626
|
|
|
38.21
|
|
||||
Vested (issued or unissued and cancelled)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Forfeited
|
|
(1,914
|
)
|
|
38.62
|
|
|
(1,739
|
)
|
|
38.83
|
|
||||
Outstanding, end of period
|
|
98,311
|
|
|
$
|
39.61
|
|
|
66,791
|
|
|
$
|
38.84
|
|
||
Total weighted-average grant-date fair value of shares granted (in millions)
|
|
$
|
1.4
|
|
|
|
|
$
|
1.4
|
|
|
|
(1)
|
Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.
|
|
|
2019
|
|
|
2018
|
|
Risk-free interest rate
|
|
2.48
|
%
|
|
2.29
|
%
|
Expected life in years
|
|
3
|
|
|
3
|
|
Expected volatility
|
|
15.8
|
%
|
|
17.0
|
%
|
Range of expected volatility for Peer Group
|
|
15.0% to 73.2%
|
|
|
15.1% to 26.2%
|
|
Grant date fair value (per share)
|
|
$41.07
|
|
$38.20
|
|
|
Three months ended March 31
|
||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||
Outstanding, beginning of period
|
|
276,169
|
|
|
$
|
33.80
|
|
|
131,616
|
|
|
$
|
33.47
|
|
||
Granted
|
|
138,580
|
|
|
37.68
|
|
|
142,509
|
|
|
34.10
|
|
||||
Vested
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Forfeited
|
|
(7,659
|
)
|
|
33.91
|
|
|
(6,958
|
)
|
|
33.81
|
|
||||
Outstanding, end of period
|
|
407,090
|
|
|
$
|
35.12
|
|
|
267,167
|
|
|
$
|
33.80
|
|
||
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions)
|
|
$
|
5.2
|
|
|
|
|
$
|
4.9
|
|
|
|
(1)
|
Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.
|
Three months ended March 31
|
|
2019
|
|
2018
|
||||
(in millions)
|
|
|
|
|
||||
Supplemental disclosures of cash flow information
|
|
|
|
|
|
|
||
HEI consolidated
|
|
|
|
|
||||
Interest paid to non-affiliates, net of amounts capitalized
|
|
$
|
21
|
|
|
$
|
19
|
|
Income taxes paid (including refundable credits)
|
|
4
|
|
|
3
|
|
||
Income taxes refunded (including refundable credits)
|
|
4
|
|
|
—
|
|
||
Hawaiian Electric consolidated
|
|
|
|
|
||||
Interest paid to non-affiliates
|
|
12
|
|
|
12
|
|
||
Income taxes paid (including refundable credits)
|
|
5
|
|
|
5
|
|
||
Income taxes refunded (including refundable credits)
|
|
4
|
|
|
—
|
|
||
Supplemental disclosures of noncash activities
|
|
|
|
|
|
|
||
HEI consolidated
|
|
|
|
|
||||
Property, plant and equipment
|
|
|
|
|
||||
Estimated fair value of noncash contributions in aid of construction (investing)
|
|
—
|
|
|
3
|
|
||
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing)
|
|
36
|
|
|
48
|
|
||
Loans transferred from held for investment to held for sale (investing)
|
|
—
|
|
|
1
|
|
||
Common stock issued (gross) for director and executive/management compensation (financing)1
|
|
3
|
|
|
3
|
|
||
Real estate transferred from property, plant and equipment to other assets held-for-sale (investing)
|
|
9
|
|
|
—
|
|
||
Transfer of retail repurchase agreements to deposit liabilities (financing)
|
|
—
|
|
|
102
|
|
||
Hawaiian Electric consolidated
|
|
|
|
|
||||
Electric utility property, plant and equipment
|
|
|
|
|
||||
Estimated fair value of noncash contributions in aid of construction (investing)
|
|
—
|
|
|
3
|
|
||
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing)
|
|
29
|
|
|
29
|
|
|
|
|
|
Estimated fair value
|
||||||||||||||||
|
|
Carrying or notional amount
|
|
Quoted prices in
active markets
for identical assets
|
|
Significant
other observable
inputs
|
|
Significant
unobservable
inputs
|
|
|
||||||||||
(in thousands)
|
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Total
|
|||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale investment securities
|
|
$
|
1,348,263
|
|
|
$
|
—
|
|
|
$
|
1,320,293
|
|
|
$
|
27,970
|
|
|
$
|
1,348,263
|
|
Held-to-maturity investment securities
|
|
140,203
|
|
|
—
|
|
|
142,333
|
|
|
—
|
|
|
142,333
|
|
|||||
Stock in Federal Home Loan Bank
|
|
9,434
|
|
|
—
|
|
|
9,434
|
|
|
—
|
|
|
9,434
|
|
|||||
Loans, net
|
|
4,812,019
|
|
|
—
|
|
|
8,146
|
|
|
4,848,885
|
|
|
4,857,031
|
|
|||||
Mortgage servicing rights
|
|
7,897
|
|
|
—
|
|
|
—
|
|
|
13,046
|
|
|
13,046
|
|
|||||
Derivative assets
|
|
38,755
|
|
|
—
|
|
|
472
|
|
|
—
|
|
|
472
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
|
|
780,296
|
|
|
—
|
|
|
773,168
|
|
|
—
|
|
|
773,168
|
|
|||||
Short-term borrowings—other than bank
|
|
110,399
|
|
|
—
|
|
|
110,399
|
|
|
—
|
|
|
110,399
|
|
|||||
Other bank borrowings
|
|
89,870
|
|
|
—
|
|
|
89,867
|
|
|
—
|
|
|
89,867
|
|
|||||
Long-term debt, net—other than bank
|
|
1,880,339
|
|
|
—
|
|
|
1,968,642
|
|
|
—
|
|
|
1,968,642
|
|
|||||
Derivative liabilities
|
|
50,815
|
|
|
141
|
|
|
1,160
|
|
|
—
|
|
|
1,301
|
|
|||||
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
|
55,999
|
|
|
—
|
|
|
55,999
|
|
|
—
|
|
|
55,999
|
|
|||||
Long-term debt, net
|
|
1,418,973
|
|
|
—
|
|
|
1,499,417
|
|
|
—
|
|
|
1,499,417
|
|
|||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale investment securities
|
|
1,388,533
|
|
|
—
|
|
|
1,364,897
|
|
|
23,636
|
|
|
1,388,533
|
|
|||||
Held-to-maturity investment securities
|
|
141,875
|
|
|
—
|
|
|
142,057
|
|
|
—
|
|
|
142,057
|
|
|||||
Stock in Federal Home Loan Bank
|
|
9,958
|
|
|
—
|
|
|
9,958
|
|
|
—
|
|
|
9,958
|
|
|||||
Loans, net
|
|
4,792,707
|
|
|
—
|
|
|
1,809
|
|
|
4,800,244
|
|
|
4,802,053
|
|
|||||
Mortgage servicing rights
|
|
8,062
|
|
|
—
|
|
|
—
|
|
|
13,618
|
|
|
13,618
|
|
|||||
Derivative assets
|
|
10,180
|
|
|
—
|
|
|
91
|
|
|
—
|
|
|
91
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
|
|
827,841
|
|
|
—
|
|
|
817,667
|
|
|
—
|
|
|
817,667
|
|
|||||
Short-term borrowings—other than bank
|
|
73,992
|
|
|
—
|
|
|
73,992
|
|
|
—
|
|
|
73,992
|
|
|||||
Other bank borrowings
|
|
110,040
|
|
|
—
|
|
|
110,037
|
|
|
—
|
|
|
110,037
|
|
|||||
Long-term debt, net—other than bank
|
|
1,879,641
|
|
|
—
|
|
|
1,904,261
|
|
|
—
|
|
|
1,904,261
|
|
|||||
Derivative liabilities
|
|
34,132
|
|
|
34
|
|
|
596
|
|
|
—
|
|
|
630
|
|
|||||
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
|
25,000
|
|
|
—
|
|
|
25,000
|
|
|
—
|
|
|
25,000
|
|
|||||
Long-term debt, net
|
|
1,418,802
|
|
|
—
|
|
|
1,443,968
|
|
|
—
|
|
|
1,443,968
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
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-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
|
$
|
—
|
|
|
$
|
1,128,987
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,161,416
|
|
|
$
|
—
|
|
U.S. Treasury and federal agency obligations
|
|
—
|
|
|
140,844
|
|
|
—
|
|
|
—
|
|
|
154,349
|
|
|
—
|
|
||||||
Corporate bonds
|
|
—
|
|
|
50,462
|
|
|
—
|
|
|
—
|
|
|
49,132
|
|
|
—
|
|
||||||
Mortgage revenue bonds
|
|
—
|
|
|
—
|
|
|
27,970
|
|
|
—
|
|
|
—
|
|
|
23,636
|
|
||||||
|
|
$
|
—
|
|
|
$
|
1,320,293
|
|
|
$
|
27,970
|
|
|
$
|
—
|
|
|
$
|
1,364,897
|
|
|
$
|
23,636
|
|
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate lock commitments (bank segment)1
|
|
$
|
—
|
|
|
$
|
463
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
91
|
|
|
$
|
—
|
|
Forward commitments (bank segment)1
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
$
|
—
|
|
|
$
|
472
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
91
|
|
|
$
|
—
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate lock commitments (bank segment)1
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Forward commitments (bank segment)1
|
|
141
|
|
|
29
|
|
|
—
|
|
|
34
|
|
|
9
|
|
|
—
|
|
||||||
Interest rate swap (Other segment)2
|
|
—
|
|
|
1,130
|
|
|
—
|
|
|
—
|
|
|
587
|
|
|
—
|
|
||||||
|
|
$
|
141
|
|
|
$
|
1,160
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
596
|
|
|
$
|
—
|
|
|
|
Three months ended March 31
|
|||||
Mortgage revenue bonds
|
|
2019
|
2018
|
||||
(in thousands)
|
|
|
|
||||
Beginning balance
|
|
$
|
23,636
|
|
$
|
15,427
|
|
Principal payments received
|
|
—
|
|
—
|
|
||
Purchases
|
|
4,334
|
|
—
|
|
||
Unrealized gain (loss) included in other comprehensive income
|
|
—
|
|
—
|
|
||
Ending balance
|
|
$
|
27,970
|
|
$
|
15,427
|
|
|
|
|
|
Fair value measurements
|
||||||||||||
(in thousands)
|
|
Balance
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
$
|
237
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
237
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
77
|
|
|
—
|
|
|
—
|
|
|
77
|
|
||||
Real estate acquired in settlement of loans
|
|
186
|
|
|
—
|
|
|
—
|
|
|
186
|
|
|
|
|
|
|
|
|
|
Significant unobservable
input value (1)
|
||||
($ in thousands)
|
|
Fair value
|
|
Valuation technique
|
|
Significant unobservable input
|
|
Range
|
|
Weighted
Average
|
||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||
Residential loan
|
|
$
|
192
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling cost
|
|
|
|
N/A (2)
|
Commercial loan
|
|
45
|
|
|
Fair value of property or collateral
|
|
Fair value of business assets
|
|
|
|
N/A (2)
|
|
Total loans
|
|
$
|
237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||
Home equity line of credit
|
|
$
|
77
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling cost
|
|
|
|
N/A (2)
|
Total loans
|
|
$
|
77
|
|
|
|
|
|
|
|
|
|
Real estate acquired in settlement of loans
|
|
$
|
186
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling cost
|
|
|
|
N/A (2)
|
(in thousands, except per
|
|
Three months ended March 31
|
|
%
|
|
|
||||||
share amounts)
|
|
2019
|
|
2018
|
|
change
|
|
Primary reason(s)*
|
||||
Revenues
|
|
$
|
661,615
|
|
|
$
|
645,874
|
|
|
2
|
|
Increases for the electric utility and bank segments
|
Operating income
|
|
77,937
|
|
|
71,889
|
|
|
8
|
|
Increases for the electric utility and bank segments, partly offset by higher operating losses for the “other” segment
|
||
Net income for common stock
|
|
45,688
|
|
|
40,247
|
|
|
14
|
|
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
|
|
|
$
|
0.37
|
|
|
14
|
|
Higher net income
|
Weighted-average number of common shares outstanding
|
|
108,913
|
|
|
108,818
|
|
|
—
|
|
Issuances of shares under compensation and director stock plans.
|
*
|
Also, see segment discussions which follow.
|
|
|
Three months ended March 31
|
|
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
|
Primary reason(s)
|
||||
Revenues
|
|
$
|
68
|
|
|
$
|
28
|
|
|
|
Operating loss
|
|
(4,745
|
)
|
|
(4,367
|
)
|
|
The first quarters of 2019 and 2018 include $0.2 million and $0.9 million, respectively, of operating income from Pacific Current1. First quarter 2019 corporate expense was $0.4 million lower than the first quarter of 2018, primarily due to higher incentive compensation accruals and adjustments in the first quarter of 2018, as compared to the first quarter of 2019, partially offset by higher professional fees in the first quarter of 2019.
|
||
Net loss
|
|
(7,277
|
)
|
|
(6,188
|
)
|
|
The net loss for the first quarter of 2019 was higher than the net loss for the first quarter of 2018 due to higher interest expense (as a result of higher interest rates and balances at corporate) and lower Pacific Current income, partially offset by a higher income tax benefit and lower HEI corporate expenses.
|
1
|
Hamakua Energy’s sales to Hawaii Electric Light (a regulated affiliate) are eliminated in consolidation.
|
(dollars in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
Short-term borrowings—other than bank
|
|
$
|
110
|
|
|
2
|
%
|
|
$
|
74
|
|
|
2
|
%
|
Long-term debt, net—other than bank
|
|
1,880
|
|
|
45
|
|
|
1,880
|
|
|
45
|
|
||
Preferred stock of subsidiaries
|
|
34
|
|
|
1
|
|
|
34
|
|
|
1
|
|
||
Common stock equity
|
|
2,184
|
|
|
52
|
|
|
2,162
|
|
|
52
|
|
||
|
|
$
|
4,208
|
|
|
100
|
%
|
|
$
|
4,150
|
|
|
100
|
%
|
|
|
Average balance
|
|
Balance
|
||||||||
(in millions)
|
|
Three months ended March 31, 2019
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||
Commercial paper
|
|
$
|
43
|
|
|
$
|
54
|
|
|
$
|
49
|
|
Line of credit draws
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Undrawn capacity under HEI’s line of credit facility
|
|
|
|
150
|
|
|
150
|
|
Three months ended March 31
|
|
Increase
|
|
|
||||||||||||
2019
|
|
2018
|
|
(decrease)
|
|
(dollars in millions, except per barrel amounts)
|
||||||||||
$
|
578
|
|
|
$
|
570
|
|
|
$
|
8
|
|
|
|
|
Revenues. Net increase largely due to:
|
||
|
|
|
|
|
|
$
|
13
|
|
|
higher rates
|
||||||
|
|
|
|
|
|
5
|
|
|
MPIR for Schofield Generating Station
|
|||||||
|
|
|
|
|
|
2
|
|
|
renewable RFP Phase 1 PIM
|
|||||||
|
|
|
|
|
|
2
|
|
|
billing to a third party for mutual assistance work reimbursement
|
|||||||
|
|
|
|
|
|
1
|
|
|
Joint pole attachment fees
|
|||||||
|
|
|
|
|
|
(7
|
)
|
|
lower kWh generated
|
|||||||
|
|
|
|
|
|
(7
|
)
|
|
lower kWh purchased
|
|||||||
161
|
|
|
167
|
|
|
(6
|
)
|
|
|
|
Fuel oil expense. Decrease due to lower kWh generated while fuel oil prices remaining at comparable levels
|
|||||
134
|
|
|
140
|
|
|
(6
|
)
|
|
|
|
Purchased power expense. Net decrease largely due to:
|
|||||
|
|
|
|
|
|
(7
|
)
|
|
lower kWh purchased
|
|||||||
|
|
|
|
|
|
(3
|
)
|
|
lower AES and PGV capacity charges
|
|||||||
|
|
|
|
|
|
4
|
|
|
higher purchased power energy price1
|
|||||||
118
|
|
|
108
|
|
|
10
|
|
|
|
|
Operation and maintenance expenses. Net increase largely due to:
|
|||||
|
|
|
|
|
|
4
|
|
|
reset of pension costs included in rates as part of rate case decisions
|
|||||||
|
|
|
|
|
|
3
|
|
|
higher administrative expense due to less being allocated to capital and billable projects
|
|||||||
|
|
|
|
|
|
2
|
|
|
cost for asset management data cleansing
|
|||||||
|
|
|
|
|
|
2
|
|
|
cost for a third party mutual assistance work
|
|||||||
|
|
|
|
|
|
1
|
|
|
voluntary retirement bonus payout
|
|||||||
|
|
|
|
|
|
1
|
|
|
higher medical premium costs
|
|||||||
|
|
|
|
|
|
(3
|
)
|
|
2019 PUC approval of deferral treatment for previously-incurred expenses to modify existing generating units on Maui to run at lower loads in order to accept more renewable generation
|
|||||||
109
|
|
|
105
|
|
|
4
|
|
|
|
|
Other expenses. Increase due to higher depreciation expense for plant investments in 2018, coupled with higher revenue taxes from higher revenue
|
|||||
57
|
|
|
51
|
|
|
6
|
|
|
|
|
Operating income. Increase due to higher revenue, offset in part by higher operation and maintenance and depreciation expenses
|
|||||
32
|
|
|
27
|
|
|
5
|
|
|
|
|
Net income for common stock. Increase due to higher rates, MPIR and PIMS revenues, offset in part by higher expenses and lower allowance for funds under construction (AFUDC) due to lower level of construction work in progress
|
|||||
|
|
|
|
|
|
|
|
|
||||||||
1,916
|
|
|
2,012
|
|
|
(96
|
)
|
|
|
|
Kilowatthour sales (millions)2
|
|||||
$
|
80.39
|
|
|
$
|
80.68
|
|
|
$
|
(0.29
|
)
|
|
|
|
Average fuel oil cost per barrel3
|
||
463,964
|
|
|
462,764
|
|
|
1,200
|
|
|
|
|
Customer accounts (end of period)
|
1
|
The rate schedules of the electric utilities currently contain PPACs through which changes in purchase power expenses (except purchased energy costs) are passed on to customers.
|
2
|
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, coupled with cooler and less humid weather.
|
3
|
The rate schedules of the electric utilities currently contain ECACs and ECRCs through which changes in fuel oil prices and certain components of purchased energy costs are passed on to customers.
|
%
|
|
Rate-making Return on rate base (RORB)*
|
|
ROACE**
|
|
Rate-making ROACE***
|
|||||||||||||||||||||
Twelve months ended
March 31, 2019
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|||||||||
Utility returns
|
|
6.65
|
|
|
6.75
|
|
|
6.92
|
|
|
7.52
|
|
|
8.02
|
|
|
8.79
|
|
|
7.99
|
|
|
7.64
|
|
|
8.54
|
|
PUC-allowed returns
|
|
7.57
|
|
|
7.80
|
|
|
7.43
|
|
|
9.50
|
|
|
9.50
|
|
|
9.50
|
|
|
9.50
|
|
|
9.50
|
|
|
9.50
|
|
Difference
|
|
(0.92
|
)
|
|
(1.05
|
)
|
|
(0.51
|
)
|
|
(1.98
|
)
|
|
(1.48
|
)
|
|
(0.71
|
)
|
|
(1.51
|
)
|
|
(1.86
|
)
|
|
(0.96
|
)
|
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
|
|
9/1/18
|
|
(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
|
|
10/1/18
|
|
—
|
|
|
—
|
|
|
9.50
|
|
|
7.80
|
|
|
481
|
|
|
56.69
|
|
|
|
||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Request
|
|
12/14/18
|
|
$
|
13.4
|
|
|
3.4
|
|
|
10.50
|
|
|
8.30
|
|
|
$
|
537
|
|
|
56.91
|
|
|
|
Maui Electric
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2018 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Request
|
|
10/12/17
|
|
$
|
30.1
|
|
|
9.3
|
|
|
10.60
|
|
|
8.05
|
|
|
$
|
473
|
|
|
56.94
|
|
|
Yes
|
Interim increase with Tax Act
|
|
8/23/18
|
|
12.5
|
|
|
3.82
|
|
|
9.50
|
|
|
7.43
|
|
|
462
|
|
|
57.02
|
|
|
|
||
Final increase
|
|
6/1/19
|
|
12.2
|
|
|
3.7
|
|
|
9.50
|
|
|
7.43
|
|
|
454
|
|
|
57.02
|
|
|
|
1
|
Final D&O was issued on June 22, 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 was expected to be placed into service by August 31, 2019, but has been delayed due to an appeal of the decision in the Habitat Conservation Permit contested case.
|
•
|
In July 2017, the PUC approved, with certain modifications and conditions, three 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. The three projects are now owned by Clearway Energy Group LLC, whose controlling investor is Global Infrastructure Partners. The three projects are expected to be in service by the end of 2019.
|
•
|
In July 2018, the PUC approved Maui Electric’s PPA with Molokai New Energy Partners to purchase solar energy from a PV plus battery storage project. The 4.88 MW project will deliver no more than 2.64 MW at any time to the Molokai system. The Guaranteed Commercial Operations Date is January 2020.
|
•
|
In November 2018, Hawaiian Electric filed with the PUC a PPA for Renewable As-Available Energy dated October 22, 2018 between Hawaiian Electric and EE Ewa, LLC (Palehua) for a proposed 46.8 MW wind farm on Oahu, subject to PUC approval. The project is expected to be in service by December 2022.
|
•
|
As of March 31, 2019, there were approximately 469 MW, 100 MW and 111 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, Net Energy Metering, Net Energy Metering Plus, Customer Grid Supply, Customer Self Supply, Customer Grid Supply Plus and Interim Smart Export. As of March 31, 2019, an estimated 29% 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 March 31, 2019, there were 33 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 July 2018, the PUC approved Hawaiian Electric’s 3-year biodiesel supply contract with Pacific Biodiesel Technologies, LLC (PBT) to supply 2 million to 4 million gallons of biodiesel at Hawaiian Electric’s Schofield Generating Station and the Honolulu International Airport Emergency Power Facility (HIA Facility) and any other generating unit on Oahu, as necessary. The PBT contract became effective on November 1, 2018. Hawaiian Electric also has a spot buy contract with PBT 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 extended through June 2020.
|
•
|
Hawaiian Electric has a contingency supply contract with REG Marketing & Logistics Group, LLC to also supply biodiesel to any generating unit on Oahu in the event PBT is not able to supply necessary quantities. This contingency contract has been extended to November 2020, and will continue with no volume purchase requirements.
|
•
|
Under a request for proposal process governed by the PUC and monitored by independent observers, in February 2018, the Utilities issued RFPs for 220 MW of renewable generation on Oahu, 50 MW of renewable generation on Hawaii Island, and 60 MW of renewable generation on Maui. The Utilities selected a final award group for Hawaii Island in August 2018 and for Maui and Oahu in September 2018.
|
Utilities
|
|
Number of contracts
|
|
Total photovoltaic size (MW)
|
|
Battery Energy Storage System (BESS) Size (MW/MWh)
|
|
Guaranteed commercial operation dates
|
|
Contract term (years)
|
|
Total projected annual payment (in millions)
|
||
Hawaiian Electric
|
|
4
|
|
139.5
|
|
139.5 / 558
|
|
9/30/2021 & 12/31/2021
|
|
20 & 25
|
|
$
|
30.9
|
|
Hawaii Electric Light
|
|
2
|
|
60
|
|
60 / 240
|
|
7/20/2021 & 6/30/2022
|
|
25
|
|
14.1
|
|
|
Maui Electric
|
|
2
|
|
75
|
|
75 / 300
|
|
7/20/2021 & 6/30/2022
|
|
25
|
|
17.6
|
|
|
Total
|
|
8
|
|
274.5
|
|
274.5 / 1098
|
|
|
|
|
|
$
|
62.6
|
|
•
|
In October 2017, the Utilities filed a draft request for proposal with the PUC for 40 MW of firm renewable generation on Maui (Maui Firm RFP) to be in service by the end of 2022. The Utilities have since decided to move forward with an RFP for variable renewable energy and energy storage.
|
•
|
In continuation of its February 2018 request for proposal process, the Utilities issued draft requests for proposals for a stage two procurement with the PUC on April 1, 2019. The second phase, if approved by the PUC, will be open to all variable renewable and storage resources, including efforts to add more renewable solar and wind generation, renewable plus storage, standalone storage and grid services.
|
(dollars in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
Short-term borrowings
|
|
$
|
56
|
|
|
1
|
%
|
|
$
|
25
|
|
|
1
|
%
|
Long-term debt, net
|
|
1,419
|
|
|
41
|
|
|
1,419
|
|
|
41
|
|
||
Preferred stock
|
|
34
|
|
|
1
|
|
|
34
|
|
|
1
|
|
||
Common stock equity
|
|
1,964
|
|
|
57
|
|
|
1,958
|
|
|
57
|
|
||
|
|
$
|
3,473
|
|
|
100
|
%
|
|
$
|
3,436
|
|
|
100
|
%
|
|
|
Average balance
|
|
Balance
|
||||||||
(in millions)
|
|
Three months ended March 31, 2019
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||
Short-term borrowings 1
|
|
|
|
|
|
|
|
|
|
|||
Commercial paper
|
|
$
|
1
|
|
|
$
|
6
|
|
|
$
|
—
|
|
Line of credit draws
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Borrowings from HEI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Undrawn capacity under line of credit facility
|
|
—
|
|
|
200
|
|
|
200
|
|
(in millions)
|
Hawaiian Electric
|
Hawaii Electric Light
|
Maui Electric
|
||||||
Taxable debt authorized and issued in 2018 under April 2018 Approval
|
$
|
75
|
|
$
|
15
|
|
$
|
10
|
|
Remaining authorized amounts under April 2018 Approval
|
205
|
|
15
|
|
—
|
|
|||
Supplemental increase authorized
|
100
|
|
110
|
|
110
|
|
|||
Taxable debt issuance to refinance the 2004 QUIDS 1
|
30
|
|
10
|
|
10
|
|
|||
Total “up to” amounts of taxable debt authorized through 2022
|
$
|
410
|
|
$
|
150
|
|
$
|
130
|
|
(in millions)
|
Hawaiian Electric
|
Hawaii Electric Light
|
Maui Electric
|
||||||
Total “up to” amounts of common stock authorized to issue and sell through 2021
|
$
|
150
|
|
$
|
10
|
|
$
|
10
|
|
Supplemental increase authorized
|
280
|
|
100
|
|
100
|
|
|||
Total “up to” amounts of common stock authorized to issue and sell through 2022
|
$
|
430
|
|
$
|
110
|
|
$
|
110
|
|
|
Three months ended March 31,
|
|
|
||||||||
(in thousands)
|
2019
|
|
2018
|
|
Change
|
||||||
Net cash provided by operating activities
|
$
|
69,416
|
|
|
$
|
29,780
|
|
|
$
|
39,636
|
|
Net cash used in investing activities
|
(102,097
|
)
|
|
(109,524
|
)
|
|
7,427
|
|
|||
Net cash provided by financing activities
|
5,185
|
|
|
90,626
|
|
|
(85,441
|
)
|
|
|
Three months ended March 31
|
|
Increase
|
|
|
||||||||
(in millions)
|
|
2019
|
|
2018
|
|
(decrease)
|
|
Primary reason(s)
|
||||||
Interest income
|
|
$
|
68
|
|
|
$
|
62
|
|
|
$
|
6
|
|
|
The increase in interest income was primarily the result of an increase in balances and yields on earning assets other than interest-earning deposits. ASB’s average investment securities portfolio balance for the three months ended March 31, 2019 increased by $55 million compared to the same period in 2018 as ASB used excess liquidity to purchase investments. The yield on the investment securities portfolio increased by 33 basis points as new investment purchase yields were higher due to the rising interest rate environment and the amortization of premiums in the investment portfolio has decreased. ASB’s average loan portfolio balance for the three months ended March 31, 2019 increased by $158 million compared to the same period in 2018 due to increases in the average residential, home equity line of credit, consumer and commercial loan portfolios of $31 million, $71 million, $39 million and $28 million, respectively. The yield on loans benefited from the rising interest rate environment, which resulted in an increase in yields from the total loan portfolio of 27 basis points. The average balance of interest-earning deposits was $10 million for the three months ended March 31, 2019 compared to $56 million for the same period in 2018.
|
Noninterest income
|
|
15
|
|
|
13
|
|
|
2
|
|
|
Noninterest income increased for the three months ended March 31, 2019 compared to noninterest income for the three months ended March 31, 2018 primarily due to higher bank owned life insurance income.
|
|||
Revenues
|
|
83
|
|
|
75
|
|
|
8
|
|
|
The increase in revenues for the three months ended March 31, 2019 compared to the same period in 2018 was due higher interest and noninterest income.
|
|||
Interest expense
|
|
5
|
|
|
3
|
|
|
2
|
|
|
The increase in interest expense for the three months ended March 31, 2019 compared to the same period in 2018 was due to higher deposit balances and interest rates. Average deposit balances for the three months ended March 31, 2019 increased by $280 million compared to the same period in 2018 due to an increase in core deposits and time certificates of $242 million and $38 million, respectively. Average cost of deposits for the three months ended March 31, 2019 was 28 basis points, or 8 basis points above the cost of deposits for the same period in 2018. Average other borrowings for the three months ended March 31, 2019 decreased by $73 million compared to the same period in 2018 due to a decrease in repurchase agreements. The interest-bearing liability rate for the three months ended March 31, 2019 increased by 11 basis points compared to the same period in 2018.
|
|||
Provision for loan losses
|
|
7
|
|
|
4
|
|
|
3
|
|
|
The provision for loan losses increased for the three months ended March 31, 2019 compared to the provision for loan losses for the three months ended March 31, 2018. The provision for loan losses for 2019 was due to increased loan loss reserves for the consumer loan portfolio, and additional reserves for an impaired commercial loan and a commercial real estate loan that were downgraded. The provision for loan losses for 2018 was primarily due to increased reserves for loan growth and additional loan loss reserves for the consumer loan portfolio, partly offset by the release of reserves for the commercial loan portfolio due to a recovery on a previously charged-off commercial loan and improved credit quality of the commercial and commercial real estate loan portfolios. Delinquency rates have increased from 0.44% at March 31, 2018 to 0.63% at March 31, 2019. The annualized net charge-off ratio for the three months ended March 31, 2019 was 0.39% compared to an annualized net charge-off ratio of 0.28% for the same period in 2018. The increase was due to higher net charge-offs in the consumer loan portfolio with risk-based pricing. The net charge-offs in 2018 benefited from a recovery on a previously charged-off commercial loan.
|
|||
Noninterest expense
|
|
45
|
|
|
43
|
|
|
2
|
|
|
Noninterest expense for the three months ended March 31, 2019 compared to the same period in 2018 was slightly higher primarily due to higher compensation and employee benefits expenses as a result of an increase in the minimum pay rate for employees and annual merit increases.
|
|||
Expenses
|
|
57
|
|
|
50
|
|
|
7
|
|
|
The increase in expenses for the three months ended March 31, 2019 compared to the same period in 2018 was due to higher interest expense, higher provision for loan losses and higher noninterest expenses.
|
|||
Operating income
|
|
26
|
|
|
25
|
|
|
1
|
|
|
The increase in operating income for the three months ended March 31, 2019 compared to the same period in 2018 was primarily due to higher interest and noninterest income, partly offset by higher provision for loan losses, higher interest expense, and higher noninterest expenses.
|
|||
Net income
|
|
21
|
|
|
19
|
|
|
2
|
|
|
The increase in net income for the three months ended March 31, 2019 compared to the same period in 2018 was primarily due to higher operating income and lower income tax expense.
|
|
|
Three months ended March 31
|
||||
(%)
|
|
2019
|
|
2018
|
||
Return on average assets
|
|
1.18
|
|
|
1.12
|
|
Return on average equity
|
|
13.09
|
|
|
12.58
|
|
Net interest margin
|
|
3.99
|
|
|
3.76
|
|
|
|
Three months ended March 31
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
(dollars in thousands)
|
|
Average
balance |
|
Interest1
income/
expense
|
|
Yield/
rate (%) |
|
Average
balance |
|
Interest1
income/
expense |
|
Yield/
rate (%) |
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-earning deposits
|
|
$
|
10,359
|
|
|
$
|
62
|
|
|
2.41
|
|
|
$
|
56,495
|
|
|
$
|
216
|
|
|
1.53
|
|
FHLB stock
|
|
10,345
|
|
|
96
|
|
|
3.76
|
|
|
9,770
|
|
|
77
|
|
|
3.20
|
|
||||
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
1,513,925
|
|
|
10,210
|
|
|
2.70
|
|
|
1,469,065
|
|
|
8,791
|
|
|
2.39
|
|
||||
Non-taxable
|
|
25,966
|
|
|
329
|
|
|
5.07
|
|
|
15,427
|
|
|
150
|
|
|
3.88
|
|
||||
Total investment securities
|
|
1,539,891
|
|
|
10,539
|
|
|
2.74
|
|
|
1,484,492
|
|
|
8,941
|
|
|
2.41
|
|
||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential 1-4 family
|
|
2,160,284
|
|
|
22,250
|
|
|
4.12
|
|
|
2,129,318
|
|
|
21,847
|
|
|
4.10
|
|
||||
Commercial real estate
|
|
845,315
|
|
|
10,173
|
|
|
4.83
|
|
|
853,485
|
|
|
9,251
|
|
|
4,35
|
|
||||
Home equity line of credit
|
|
992,029
|
|
|
9,493
|
|
|
3.88
|
|
|
921,007
|
|
|
7,988
|
|
|
3.52
|
|
||||
Residential land
|
|
12,801
|
|
|
183
|
|
|
5.71
|
|
|
16,445
|
|
|
223
|
|
|
5.41
|
|
||||
Commercial
|
|
588,709
|
|
|
6,860
|
|
|
4.70
|
|
|
560,529
|
|
|
6,179
|
|
|
4.46
|
|
||||
Consumer
|
|
270,220
|
|
|
8,901
|
|
|
13.36
|
|
|
230,841
|
|
|
7,312
|
|
|
12.85
|
|
||||
Total loans 2,3
|
|
4,869,358
|
|
|
57,860
|
|
|
4.78
|
|
|
4,711,625
|
|
|
52,800
|
|
|
4.51
|
|
||||
Total interest-earning assets 2
|
|
6,429,953
|
|
|
68,557
|
|
|
4.29
|
|
|
6,262,382
|
|
|
62,034
|
|
|
3.88
|
|
||||
Allowance for loan losses
|
|
(52,051
|
)
|
|
|
|
|
|
|
|
(53,567
|
)
|
|
|
|
|
|
|
||||
Noninterest-earning assets
|
|
682,251
|
|
|
|
|
|
|
|
|
574,107
|
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
7,060,153
|
|
|
|
|
|
|
|
|
$
|
6,782,922
|
|
|
|
|
|
|
|
||
Liabilities and shareholder’s equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Savings
|
|
$
|
2,335,046
|
|
|
$
|
402
|
|
|
0.07
|
|
|
$
|
2,311,083
|
|
|
$
|
401
|
|
|
0.07
|
|
Interest-bearing checking
|
|
1,041,916
|
|
|
264
|
|
|
0.10
|
|
|
933,347
|
|
|
74
|
|
|
0.03
|
|
||||
Money market
|
|
150,448
|
|
|
241
|
|
|
0.65
|
|
|
113,631
|
|
|
26
|
|
|
0.09
|
|
||||
Time certificates
|
|
831,326
|
|
|
3,345
|
|
|
1.63
|
|
|
793,596
|
|
|
2,456
|
|
|
1.25
|
|
||||
Total interest-bearing deposits
|
|
4,358,736
|
|
|
4,252
|
|
|
0.40
|
|
|
4,151,657
|
|
|
2,957
|
|
|
0.29
|
|
||||
Advances from Federal Home Loan Bank
|
|
54,289
|
|
|
353
|
|
|
2.64
|
|
|
51,111
|
|
|
245
|
|
|
1.94
|
|
||||
Securities sold under agreements to repurchase
|
|
78,776
|
|
|
175
|
|
|
0.90
|
|
|
154,744
|
|
|
251
|
|
|
0.66
|
|
||||
Total interest-bearing liabilities
|
|
4,491,801
|
|
|
4,780
|
|
|
0.43
|
|
|
4,357,512
|
|
|
3,453
|
|
|
0.32
|
|
||||
Noninterest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
|
1,797,646
|
|
|
|
|
|
|
|
|
1,724,955
|
|
|
|
|
|
|
|
||||
Other
|
|
133,743
|
|
|
|
|
|
|
|
|
97,761
|
|
|
|
|
|
|
|
||||
Shareholder’s equity
|
|
636,963
|
|
|
|
|
|
|
|
|
602,694
|
|
|
|
|
|
|
|
||||
Total liabilities and shareholder’s equity
|
|
$
|
7,060,153
|
|
|
|
|
|
|
|
|
$
|
6,782,922
|
|
|
|
|
|
|
|
||
Net interest income
|
|
|
|
|
$
|
63,777
|
|
|
|
|
|
|
|
|
$
|
58,581
|
|
|
|
|
||
Net interest margin (%) 4
|
|
|
|
|
|
|
|
3.99
|
|
|
|
|
|
|
|
|
3.76
|
|
1
|
Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $0.07 million and $0.03 million for the three months ended March 31, 2019 and 2018, respectively.
|
3
|
Includes recognition of net deferred loan fees of nil and $0.1 million for the three months ended March 31, 2019 and 2018, respectively, together with interest accrued prior to suspension of interest accrual on nonaccrual loans.
|
4
|
Defined as net interest income, on a fully taxable equivalent basis, as a percentage of average total interest-earning assets.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Outstanding balance of home equity loans (in thousands)
|
|
$
|
995,624
|
|
|
$
|
978,237
|
|
Percent of portfolio in first lien position
|
|
50.2
|
%
|
|
49.2
|
%
|
||
Annualized net charge-off ratio
|
|
—
|
%
|
|
0.01
|
%
|
||
Delinquency ratio
|
|
0.42
|
%
|
|
0.46
|
%
|
|
|
|
|
|
|
End of draw period – interest only
|
|
Current
|
||||||||||||||||
March 31, 2019
|
|
Total
|
|
Interest only
|
|
2019-2020
|
|
2021-2023
|
|
Thereafter
|
|
amortizing
|
||||||||||||
Outstanding balance (in thousands)
|
|
$
|
995,624
|
|
|
$
|
742,200
|
|
|
$
|
27,969
|
|
|
$
|
126,657
|
|
|
$
|
587,574
|
|
|
$
|
253,424
|
|
% of total
|
|
100
|
%
|
|
75
|
%
|
|
3
|
%
|
|
13
|
%
|
|
59
|
%
|
|
25
|
%
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
(dollars in thousands)
|
|
Balance
|
|
% of total
|
|
Balance
|
|
% of total
|
||||||
U.S. Treasury and federal agency obligations
|
|
$
|
140,844
|
|
|
10
|
%
|
|
$
|
154,349
|
|
|
10
|
%
|
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
|
1,269,190
|
|
|
85
|
|
|
1,303,291
|
|
|
85
|
|
||
Corporate bonds
|
|
50,462
|
|
|
3
|
|
|
49,132
|
|
|
3
|
|
||
Mortgage revenue bonds
|
|
27,970
|
|
|
2
|
|
|
23,636
|
|
|
2
|
|
||
Total investment securities
|
|
$
|
1,488,466
|
|
|
100
|
%
|
|
$
|
1,530,408
|
|
|
100
|
%
|
|
|
Three months ended March 31
|
|
Year ended
December 31,
|
||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2018
|
||||||
Allowance for loan losses, January 1
|
|
$
|
52,119
|
|
|
$
|
53,637
|
|
|
$
|
53,637
|
|
Provision for loan losses
|
|
6,870
|
|
|
3,541
|
|
|
14,745
|
|
|||
Less: net charge-offs
|
|
4,692
|
|
|
3,283
|
|
|
16,263
|
|
|||
Allowance for loan losses, end of period
|
|
$
|
54,297
|
|
|
$
|
53,895
|
|
|
$
|
52,119
|
|
Ratio of net charge-offs during the period to average loans outstanding (annualized)
|
|
0.39
|
%
|
|
0.28
|
%
|
|
0.34
|
%
|
Effective dates
|
|
1/1/2015
|
|
1/1/2016
|
|
1/1/2017
|
|
1/1/2018
|
|
1/1/2019
|
|||||
Capital conservation buffer
|
|
|
|
|
0.625
|
%
|
|
1.25
|
%
|
|
1.875
|
%
|
|
2.50
|
%
|
Common equity Tier-1 ratio + conservation buffer
|
|
4.50
|
%
|
|
5.125
|
%
|
|
5.75
|
%
|
|
6.375
|
%
|
|
7.00
|
%
|
Tier-1 capital ratio + conservation buffer
|
|
6.00
|
%
|
|
6.625
|
%
|
|
7.25
|
%
|
|
7.875
|
%
|
|
8.50
|
%
|
Total capital ratio + conservation buffer
|
|
8.00
|
%
|
|
8.625
|
%
|
|
9.25
|
%
|
|
9.875
|
%
|
|
10.50
|
%
|
Tier-1 leverage ratio
|
|
4.00
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
Countercyclical capital buffer — not applicable to ASB
|
|
|
|
|
0.625
|
%
|
|
1.25
|
%
|
|
1.875
|
%
|
|
2.50
|
%
|
(dollars in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
|
% change
|
|||||
Total assets
|
|
$
|
7,062
|
|
|
$
|
7,028
|
|
|
—
|
|
Investment securities
|
|
1,488
|
|
|
1,530
|
|
|
(3
|
)
|
||
Loans held for investment, net
|
|
4,804
|
|
|
4,791
|
|
|
—
|
|
||
Deposit liabilities
|
|
6,206
|
|
|
6,159
|
|
|
1
|
|
||
Other bank borrowings
|
|
90
|
|
|
110
|
|
|
(18
|
)
|
Change in interest rates
|
|
Change in NII
(gradual change in interest rates)
|
|
Change in EVE
(instantaneous change in interest rates)
|
||||||||
(basis points)
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
+300
|
|
3.3
|
%
|
|
2.5
|
%
|
|
14.8
|
%
|
|
10.0
|
%
|
+200
|
|
2.5
|
|
|
1.9
|
|
|
11.8
|
|
|
8.1
|
|
+100
|
|
1.5
|
|
|
1.1
|
|
|
7.3
|
|
|
5.1
|
|
-100
|
|
(2.6
|
)
|
|
(2.3
|
)
|
|
(13.8
|
)
|
|
(11.0
|
)
|
|
|
|
|
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.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
|
|
|
|
|
|
|
|
Supply Contract for Low Sulfur Fuel Oil, High Sulfur Fuel Oil, No. 2 Diesel, and Ultra-Low Sulfur Diesel by and between Hawaiian Electric, Hawaii Electric Light, and Maui Electric and PAR Hawaii Refining, LLC dated January 21, 2019 (certain confidential information has been omitted)
|
|
|
|
|
|
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, Chief Financial
|
|
|
Senior Vice President
|
|
Officer and Treasurer
|
|
|
and Chief Financial Officer
|
|
(Principal Financial Officer of HEI)
|
|
|
(Principal Financial Officer of Hawaiian Electric)
|
|
|
|
|
|
|
|
|
||
Date: May 7, 2019
|
|
Date: May 7, 2019
|
1.1.
|
“Affiliate”, except where otherwise expressly provided, means a corporation controlling, controlled by or under common control with SELLER or the Companies, as the case may be.
|
1.2.
|
“API” means American Petroleum Institute, a long-established petroleum industry organization.
|
1.3.
|
“Applicable Law” means any and all applicable present and future laws, statutes, rules, regulations, ordinances, orders, codes, judgments, decrees, requirements, grants, concessions, franchises, directives, governments; restrictions or similar norm or decision of or by any Governmental Authority.
|
1.4.
|
“ASC” is defined in Section 17.10(a) below.
|
1.5.
|
“ASTM” means the American Society for Testing and Materials, a long-established source of standard testing and evaluation methods for petroleum.
|
1.6.
|
“Barrel” means 42 United States bulk gallons at 60 DF.
|
1.7.
|
“BPTF” means Hawaiian Electric’s Barbers Point Tank Farm, a fuel receiving, storage and distribution facility located at the Campbell Estate Industrial Park, in Kapolei, Hawaii.
|
1.8.
|
“BTU” and “BTU content” means British Thermal Unit and refers to the standard assessment of fuel’s gross heating value or gross heat content.
|
1.9.
|
“Business Day” means any calendar day that is not a Saturday, a Sunday, or a federal or Hawaii state holiday.
|
1.10.
|
“Certificate of Quality” or “Quality Certificate” means the formal document recording SELLER’s laboratory determination of the quality of a particular sample which represents a specific Delivery, said laboratory determinations having been performed in accordance with the test methods specified in Exhibit A.
|
1.11.
|
“Certificate of Quantity” means the formal document recording the measurements and quantity determination of a specific Delivery of Product prepared under the supervision of the Independent Inspector; said Certificate may be a part of or incorporated into the report of the Independent Inspector.
|
1.12.
|
“CIP Generating Station” means Hawaiian Electric’s facility located in Kapolei, Hawaii.
|
1.13.
|
“Commission" means the State of Hawaii Public Utilities Commission
|
1.14.
|
“Commission Approval Order” is defined in Section 2.2 below.
|
1.15.
|
“Commission Approval Order Date” is the date the Commission files the Commission Approval Order.
|
1.16.
|
“Company’s Nominated Barge” means a petroleum tank barge or vessel designated by Hawaiian Electric, Hawai‘i Electric Light or Maui Electric to receive Product Delivered by SELLER.
|
1.17.
|
“Company’s Nominated Marine Terminal” means a petroleum receiving, storage and distribution facility designated by Hawaiian Electric, Hawai‘i Electric Light, or Maui Electric to receive Product Delivered by SELLER.
|
1.18.
|
“Company’s Nominated Truck(s)” means one or more tanker trucks designated by Hawaiian Electric, Hawai‘i Electric Light, or Maui Electric to receive ULSD Delivered by SELLER at SELLER’s Kahului Terminal, SELLER’s Hilo Terminal or SELLER’s Honolulu Terminal. Company’s Nominated Trucks and drivers must be pre-approved by SELLER, as they must meet SELLER’s, industry and government regulations and requirements.
|
1.19.
|
“Consumer Advocate” means the Division of Consumer Advocacy of the Department of Commerce and Consumers Affairs of the State of Hawaii.
|
1.20.
|
“Contract” means this Supply Contract for Petroleum Fuels between SELLER and the Companies.
|
1.21.
|
“Cover Costs” is defined in Section 15.1(b) below.
|
1.22.
|
“Cover Supplies” is defined in Section 15.1(b) below.
|
1.23.
|
“Day” or “Days” means a calendar day.
|
1.24.
|
“Default” and “Defaulting Party” is defined in section 15.1(a) below.
|
1.25.
|
“Deliver”, “Delivery”, “Deliveries” or “Delivered” refers to the transfer of title or physical movement of LSFO, HSFO, Diesel, and/or ULSD by SELLER and received and purchased by the Companies.
|
1.26.
|
“Delivery Status against Ratable” means the volume by which actual Barrels of Product Deliveries within a specified period vary above or below the volume that would have been delivered ratably pursuant to Hawaiian Electric’s LSFO Nomination within the minimum and maximum daily average volumes for such period.
|
1.27.
|
“DC” means degrees Celsius.
|
1.28.
|
“DF” means degrees Fahrenheit.
|
1.29.
|
“Diesel” means No. 2 Diesel produced in conformity with the provisions of the quality in the Specification which are set forth in Exhibit A.
|
1.30.
|
“Discharge Pier” means the pier or wharf at Kalaeloa Harbor where a Marine Delivery is discharged.
|
1.31.
|
“Displacement Stock” means for this purpose, LSFO, HSFO, Diesel or ULSD, or such other agreed upon fuels, to displace the transfer of liquid fuels with specifications as may be mutually agreed to between SELLER and the Companies, through SELLER’s designated pipeline into the Company’s Nominated Tank or the Company’s Nominated Vessel.
|
1.32.
|
“DOT” means the Department of Transportation of the State of Hawaii and/or of the United States, as the case may be.
|
1.33.
|
“Effective Date” is defined in Section 2.3 below.
|
1.34.
|
“ETA” means estimated time of arrival.
|
1.35.
|
“Extension” means any Contract term in addition to and after the Original Term, each of which is a 12-Month period beginning January 1.
|
1.36.
|
“Failure to Supply Position” is defined in Section 6.4 below.
|
1.37.
|
“Gallon” means a United States liquid gallon of 231 cubic inches at 60 DF.
|
1.38.
|
“Governmental Authority” means any nation, government, any state or political subdivision thereof, any federal, state, territorial, municipal or other governmental or quasi-governmental authority, agency, court or other body or entity of competent jurisdiction.
|
1.39.
|
“G.S.V.” means gross standard volume in U.S. Barrels at 60 DF.
|
1.40.
|
“Hawaiian Electric’s Facility” means the facilities designated for receipt of Product at BPTF, Campbell Industrial Park, in Kapolei, Hawaii.
|
1.41.
|
“HEI” means Hawaiian Electric Industries, Inc.
|
1.42.
|
“HSE Data” is defined in Section 12.2 below
|
1.43.
|
“HSFO” means Industrial Fuel Oil No. 6 produced in conformity with the provisions of the quality in the Specifications which are set forth in Exhibit A.
|
1.44.
|
“Independent Inspector” means a qualified third-party petroleum inspection contractor acceptable to both parties providing petroleum sampling, measurement and other services before, during and after a Delivery.
|
1.45.
|
“Information” is defined in Section 17.10(a) below.
|
1.46.
|
“Kalaeloa Harbor” means the public port and pier facilities operated by the State of Hawaii at Barbers Point, Kapolei, Hawaii.
|
1.47.
|
“Law” means any law, decree, directive, judgment, order, decision, interpretation, enforcement, statute, code, ordinance, rule, regulation, treaty, convention or any action, direction or intervention or other requirement of any Governmental Authority.
|
1.48.
|
“LSFO” means Low Sulfur Fuel Oil produced in conformity with the provisions of the quality in the Specifications which are set forth in Exhibit A.
|
1.49.
|
“Marine Delivery” or “Marine Deliveries” means a Delivery of LSFO and/or the components thereof, including blend stock, all or part of which are Delivered by SELLER from a marine vessel.
|
1.50.
|
“Month” means a calendar month.
|
1.51.
|
“MT” means metric ton.
|
1.52.
|
“Nominated” and “Nomination” means the amount of LSFO, HSFO, Diesel, and/or ULSD specified by Hawaiian Electric, Hawai‘i Electric Light or Maui Electric to be sold and Delivered by SELLER and purchased and received by Hawaiian Electric, Hawai‘i Electric Light or Maui Electric for a specified Month.
|
1.53.
|
“Non-Defaulting Party” is defined in Section 15.1(a) below.
|
1.54.
|
“NOR” means notice of readiness.
|
1.55.
|
“Offsetting Party” is defined in Section 17.13 below.
|
1.56.
|
“Original Term” is defined in Section 2.1 below.
|
1.57.
|
“Par East” is SELLER’s facility located at 91-325 Komohana Street, Kapolei, Hawaii
|
1.58.
|
“Par West” is SELLER’s facility located at 91-480 Malakole Street, Kapolei, Hawaii
|
1.59.
|
“Person” means an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity.
|
1.60.
|
“Party” and “Parties” are defined in the first paragraph above.
|
1.61.
|
“Pipeline Blend” means a mixture of SELLER’s Pipeline Fill and Product.
|
1.62.
|
“Pipeline Delivery” or “Pipeline Deliveries” means a Delivery of Product and/or the components thereof, including blend stock, all or part of which are Delivered by SELLER to Hawaiian Electric’s receiving and storage tanks at BPTF.
|
1.63.
|
“Pipeline Fill” means the petroleum residing in the pipelines through which SELLER makes Delivery of Product to Hawaiian Electric, Hawai‘i Electric Light or Maui Electric.
|
1.64.
|
“Product” means LSFO, HSFO, Diesel, and/or ULSD as defined herein suitable for use as a fuel of the quality specifications per Exhibit A.
|
1.65.
|
“Receiving Facility” means any of Hawaiian Electric, Hawai‘i Electric Light or Maui Electric’s generating facilities, storage facilities and/or other facilities used to receive, transport, store, or otherwise handle the LSFO, HSFO, Diesel, and/or ULSD located on the islands of O‘ahu, Hawai‘i, Maui, or Moloka‘i as designated by the Companies.
|
1.66.
|
“Representatives” of a party shall mean the respective officers, directors, members, managers, employees, and agents of such party or its Affiliates.
|
1.67.
|
“Reverse Line Displacement” means an operation where Hawaiian Electric pumps Hawaiian Electric’s fuel into the pipeline which SELLER uses to Deliver Product to Hawaiian Electric in order to displace SELLER’s Pipeline Fill.
|
1.68.
|
“SELLER’s Hilo Terminal” means SELLER’s marine petroleum storage and distribution terminal facilities located in Hilo, Hawaii.
|
1.69.
|
“SELLER’s Honolulu Terminal” means SELLER’s marine petroleum storage and distribution terminal facilities located in Honolulu, Hawaii.
|
1.70.
|
“SELLER’s Kahului Terminal” means SELLER’s marine petroleum storage and distribution terminal facilities located in Kahului, Hawaii.
|
1.71.
|
“SELLER’s Loading Pier” means Piers 5, 6 or any such other pier developed for or utilized for the purpose of Delivering Product to the Companies, located at Kalaeloa Harbor, and connected by pipeline to SELLER’s refinery.
|
1.72.
|
“SELLER’s Nominated Barge” means a petroleum tank barge or vessel designated by SELLER to Deliver Diesel or ULSD to the Company’s Nominated Marine Terminal.
|
1.73.
|
“SELLER’s Nominated Terminal” means a petroleum storage and distribution terminal facility designated by SELLER from which ULSD is Delivered to the Companies into the Companies’ Nominated Marine Terminal, the Companies’ Nominated Barge, or to the Companies’ Nominated Truck(s).
|
1.74.
|
“SOX 404” is defined in Section 17.10(a) below.
|
1.75.
|
“Specification” means the fuel quality specifications applicable to LSFO, HSFO, Diesel, and/or ULSD as set forth in Exhibit A.
|
1.76.
|
“SPM” means SELLER’s offshore Single-Point Mooring off Barbers Point, Oahu.
|
1.77.
|
“Tank Final Sample” is defined in Section 6.5 below.
|
1.78.
|
“Third-Party Pier” means a pier or wharf or other marine facility, operated under the supervision of a third party, nominated by SELLER to be used for the purpose of Delivering Product into the Company’s Nominated Barge.
|
1.79.
|
“ULSD” means Ultra-Low Sulfur Diesel produced in conformity with the provisions of the quality in the Specification which are set forth in Exhibit A.
|
1.80.
|
“USCG” means U.S. Coast Guard.
|
1.81.
|
“USD” means currency denominated in U.S. dollars.
|
1.82.
|
“Waiau Generating Station” means Hawaiian Electric’s facility located in Pearl City, Hawaii.
|
1.83.
|
“Year” means a calendar year.
|
1.
|
Hawaiian Electric may reject SELLER’s proposed [...] Day shipment period upon providing SELLER with notice no later than [...] Business Days following Hawaiian Electric’s receipt of SELLER’s notification. In such event, Hawaiian Electric shall provide an explanation of the reason for such rejection.
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2.
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SELLER may propose an alternate [...] Day shipment period; provided that such alternate shipment period is [...] Days of the date of SELLER’s first proposed [...] Day shipment period.
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3.
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SELLER shall provide to Hawaiian Electric the intended volume of Product to be Delivered to Hawaiian Electric subject to a variation of [...] with respect to the actual physical volume Delivered and a proposed [...] Day shipment period or window which is to be within the previous [...]
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1.
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A change in the volume of an individual Pipeline Delivery if such change is in excess of [...] Barrels of the previously advised Delivery volume; or
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2.
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A change in the date of an individual Delivery, if such change is greater [...] Days from the previously advised date; or
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3.
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A change in the previously advised viscosity characterization of a Delivery.
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1.
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One part shall be provided to SELLER’s laboratory for analysis to determine quality.
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2.
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One part shall be provided to Hawaiian Electric for the purpose of verifying SELLER’s determinations.
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3.
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At least one part shall be sealed and provided to the Independent Inspector to be retained for a period of at least [...].
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1.
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Deliveries in bulk to Company’s Barge or from SELLER’s Barge or pipeline. SELLER agrees to Deliver and the Companies agree to receive HSFO, Diesel, and/or ULSD in bulk into the Company’s Nominated Barge at Kalaeloa Barbers Point Harbor. The Delivery rate for HSFO and Diesel shall be at a minimum rate of [...]. The Delivery rate for ULSD shall be at a minimum rate of [...]. SELLER agrees to make a reasonable good faith effort to coordinate its loading of the Company’s fuel in concert with the Company’s concurrent loading of any other petroleum products. HSFO product temperature shall be a minimum of [...] throughout duration of the load. The per shipment minimum volume of ULSD to be Delivered to the Company’s Nominated Barge is [...], and is required to be Delivered together with Diesel, unless otherwise mutually agreed by SELLER and the Companies. SELLER agrees to Deliver and the Company agrees to receive Diesel, and/or ULSD in bulk into Hawaiian Electric’s storage tanks or pipelines at BPTF, Hawaiian Electric CIP Generating Station, and Hawaiian Electric’s Waiau Generating Station. SELLER agrees to Deliver and the Companies agree to receive LSFO, HSFO, Diesel or ULSD as Displacement Stock through SELLER’s designated pipeline into the Company’s Nominated Tank or the Company’s Nominated Vessel as mutually agreed.
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2.
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Liftings from truck rack. SELLER agrees to Deliver and the Company agrees to receive Diesel, and/or ULSD into the Company’s Nominated tanker trucks from SELLER’s nominated terminal truck rack at a minimum Delivery rate of [...] barrels per hour.
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3.
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Company’s Nominated Barge Operations, Laytime, and Demurrage.
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1.
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[...] shall be provided to SELLER’s laboratory for analysis to determine quality.
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2.
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[...] shall be provided to Hawaiian Electric for the purpose of [...].
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3.
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At least [...] shall be sealed and provided to the [...] to be retained for a period of at least [...].
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1.
|
[...] shall be provided to SELLER’s laboratory for analysis to determine quality of the Confirmation Tests.
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2.
|
[...] shall be provided to Hawaiian Electric for the purpose of […].
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3.
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At least [...] shall be sealed and provided to the Independent Inspector to be retained for a period of at least [...].
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(i)
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For Truck Rack Deliveries, SELLER shall own, lease or have the right to use facilities sufficient to meet SELLER’s Delivery obligations under this Contract.
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(ii)
|
For Pipeline Deliveries, SELLER shall own, lease or have the right to use facilities sufficient to meet SELLER’s Delivery obligations under this Contract.
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(iii)
|
For Marine Deliveries, SELLER’s nominated vessel employed to Deliver Product to Hawaiian Electric shall comply with all regulations, pier operator’s standards for vessel acceptance quality, pollution mitigation, required pollution liability, Protection and Indemnity Insurance (“P&I”) and other insurance coverages, pier operators Operations manual and accept liability for dues and other charges on said vessel.
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(iv)
|
For Barge Deliveries, SELLER’s nominated vessel employed to Deliver Product to the Companies shall comply with all regulations, pier operator’s standards for vessel acceptance quality, pollution mitigation, required pollution liability, P&I and other insurance coverages, pier operators Operations Manual and accept liability for dues and other charges on said vessel.
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(a)
|
If SELLER employs an ocean-going tank barge for the Delivery of Product, SELLER shall maintain or cause to be maintained with respect to said vessel full form Protection & Indemnity Insurance, including Excess Collision, pollution/ environmental risk coverage, upon the vessel pursuant to a standard Protection & Indemnity Club entry, with a Club which is a member of the International Group of Protection and Indemnity Clubs (“P&I Club”) or with commercial insurance companies, with minimum limits for pollution/environmental risks to be [...] per occurrence, or at least equal to the actual value of each vessel and barge, whichever is greater. Such insurance shall cover all of the risks covered under a standard Lloyd’s Maritime Insurance policy per form SP-23, or P&I Club Rules, or equivalent.
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(b)
|
Standard Workers Compensation and Employers Liability Insurance endorsed to be applicable to the State of Hawaii as well as the Longshore Act, with statutory limits for workers compensation and limits of [...] per occurrence
|
(c)
|
Commercial General Liability Insurance with a bodily injury and property damage combined single limit per occurrence of at least [...]. Limits may be certificated by use of Umbrella/Excess policies.
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(d)
|
Automobile Liability Insurance on all owned, non-owned and hired vehicles used in conjunction with the Delivery of Product to the Companies with a bodily injury and property damage combined single limit per occurrence of at least [...]. Limits may be certificated by use of Umbrella/Excess policies.
|
(e)
|
Other Coverage. SELLER and anyone acting under its direction or control or on its behalf shall at its own expense procure and maintain in full force and effect at all times during the term of this Contract on all owned, non-owned and hired vehicles used in conjunction with the Delivery of Product to Hawai‘i Electric Light or Maui Electric, any other insurance or surety bonding that may be required under the laws, ordinances and regulations of any governmental authority, including the Federal Motor Carrier Act of 1980 and all rules and regulations of the DOT and/or the USDOT.
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HAWAIIAN ELECTRIC COMPANY, INC.
|
|
HAWAII REFINING, LLC.
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||
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|
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By:
|
/s/ Robert C. Isler
|
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By:
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/s/ Jim R. Yates
|
Name:
|
Robert C. Isler
|
|
Name:
|
Jim R. Yates
|
Title:
|
Vice President, Power Supply
|
|
Title:
|
Vice President
|
|
|
|
|
|
By:
|
/s/ Alan M. Oshima
|
|
|
|
Name:
|
Alan M. Oshima
|
|
|
|
Title:
|
President & CEO
|
|
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|
|
|
|
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|
|
|
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|
|
HAWAII ELECTRIC LIGHT COMPANY, INC.
|
|
MAUI ELECTRIC COMPANY, LTD.
|
||
|
|
|
|
|
By:
|
/s/ Robert C. Isler
|
|
By:
|
/s/ Robert C. Isler
|
Name:
|
Robert C. Isler
|
|
Name:
|
Robert C. Isler
|
Title:
|
Vice President
|
|
Title:
|
Vice President
|
|
|
|
|
|
By:
|
/s/ Alan M. Oshima
|
|
By:
|
/s/ Alan M. Oshima
|
Name:
|
Alan M. Oshima
|
|
Name:
|
Alan M. Oshima
|
Title:
|
Chairman of the Board
|
|
Title:
|
Chairman of the Board
|
|
|
|
|
|
Test Property
|
Test Method
|
Unit Of Measure
|
Min
|
Max
|
API Gravity @ 60 DF
|
ASTM D-4052
|
Degrees API
|
12
|
25
|
[...]
|
[...]
|
[…]
|
[...]
|
[...]
|
Heat Value, Gross
|
ASTM D-240
|
MM BTU/BBL
|
6.0
|
|
Flash Point
|
ASTM D-93
|
DF
|
150
|
|
Pour Point
|
ASTM D-97, D-5949
|
DF
|
|
125
|
Ash
|
ASTM D-482
|
Percent, Weight
|
|
0.03
|
Sediment & Water1
|
ASTM D-1796
|
Percent, Volume
|
|
0.501
|
Sulfur
|
ASTM D-4294
|
Percent, Weight
|
|
0.50
|
Nitrogen
|
ASTM D-4629, D-5762
|
Percent, Weight
|
|
0.50
|
Vanadium
|
ASTM D-5863, D-6728, AES
|
PPM, Weight
|
|
50.0
|
[…]2
|
[…]
|
[…]
|
|
[…]2
[…]2
[…]
|
Test Property
|
Test Method
|
Unit of Measure
|
Min
|
Max
|
API Gravity @ 60 DF
|
ASTM D-1298, D-4052
|
Degrees API
|
6.5
|
|
Viscosity
|
ASTM D-445, D-2161
|
CST @ 122 DF
|
380
|
480
|
Heat Value, Gross
|
ASTM D-240, D4868
|
MM BTU/BBL
|
6.0
|
|
Flash Point
|
ASTM D-93, D-6450
|
DF
|
150
|
|
Pour Point
|
ASTM D-97
|
DF
|
|
55
|
Sediment & Water
|
ASTM D-1796
|
Percent, Volume
|
|
0.50
|
Sulfur
|
ASTM D-1552, D-2622, D-4294
|
Percent, Weight
|
|
2.00
|
Nitrogen
|
ASTM D-5762, D-4629
|
PPM, Weight
|
|
Report
|
Vanadium
|
ASTM D-5863, D-6728, AES
|
PPM, Weight
|
|
Report
|
Test Property
|
Test Method
|
Unit of Measure
|
Min
|
Max
|
API Gravity @ 60 DF
|
ASTM D-1298 or D-4052
|
Degrees API
|
30
|
|
Viscosity
|
ASTM D-445, D-2161
|
CST @ 40 DC
|
1.9
|
4.1
|
Heat Value, Gross
|
ASTM D-240
|
MM BTU/BBL
|
Report
|
|
Flash Point
|
ASTM D-93, D-6450
|
DF
|
150
|
|
Pour Point
|
ASTM D-97, D-5949
|
DF
|
|
Report
|
Ash
|
ASTM D-482
|
PPM, Weight
|
|
100
|
Cetane Index
|
ASTM D-4737
|
Number
|
40
|
|
Carbon Residue
|
ASTM D-524, D-4530
|
Percent, Weight
|
|
0.35
|
Sediment & Water
|
ASTM D-1796
|
Percent, Volume
|
|
0.05
|
Sulfur
|
ASTM D-4294, D-129, D-5453
|
Percent, Weight
|
|
0.40
|
Nitrogen1
|
ASTM D-4629, D-5762
|
PPM, Weight
|
|
1501
|
Vanadium
|
ASTM D-3605, D-6728, AES
|
PPM, Weight
|
|
Report
|
Distillation 90% Recovered
|
ASTM D-86
|
DF
|
540
|
650
|
Sodium + Potassium
|
ASTM D-3605, D-6728, AES
|
PPM, Weight
|
|
0.5
|
Sodium + Potassium + Lithium
|
ASTM D-3605, D-6728, AES
|
PPM, Weight
|
|
Report
|
Test Property
|
Test Method
|
Unit of Measure
|
Min
|
Max
|
Appearance
|
ASTM D-4176
|
Number
|
|
2
|
API Gravity @ 60 DF
|
ASTM D-1298 or D-4052
|
Degrees API
|
Report
|
|
Viscosity
|
ASTM D-445, D-2161
|
CST @ 40 DC
|
1.9
|
4.1
|
Heat Value, Gross
|
ASTM D-240, D4868
|
MM BTU/BBL
|
Report
|
|
[…]1
|
[...]
|
[...]
|
[…]1
|
|
Ash
|
ASTM D-482
|
PPM, Weight
|
|
100
|
Cetane Index
|
ASTM D-976
|
Number
|
40
|
|
Carbon Residue
|
ASTM D-524, D-4530
|
Percent, Weight
|
|
0.35
|
Sediment & Water
|
ASTM D-1796
|
Percent, Volume
|
|
0.05
|
Sulfur
|
ASTM D-5453, D-7039
|
PPM, Weight
|
|
15
|
Copper Strip Corrosion: 3HR @ 50 DC
|
ASTM D-130-04e1
|
Classification
|
|
3
|
Distillation 90% Recovered
|
ASTM D-86
|
DC
|
282
|
338
|
Lubricity, 60 DC, WSD2
|
ASTM D-6079
|
Microns
|
|
5202
|
Conductivity2
|
ASTM D-2624, D-4308
|
pS/m
|
252
|
|
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[…]
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[...]
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Date: May 7, 2019
|
|
|
/s/ Constance H. Lau
|
|
Constance H. Lau
|
|
President and Chief Executive Officer
|
Date: May 7, 2019
|
|
|
/s/ Gregory C. Hazelton
|
|
Gregory C. Hazelton
|
|
Executive Vice President, Chief Financial Officer
|
|
and Treasurer
|
Date: May 7, 2019
|
|
|
/s/ Alan M. Oshima
|
|
Alan M. Oshima
|
|
President and Chief Executive Officer
|
Date: May 7, 2019
|
|
|
/s/ Tayne S. Y. Sekimura
|
|
Tayne S. Y. Sekimura
|
|
Senior Vice President and Chief Financial Officer
|
Date: May 7, 2019
|
|
/s/ Constance H. Lau
|
Constance H. Lau
|
President and Chief Executive Officer
|
|
/s/ Gregory C. Hazelton
|
Gregory C. Hazelton
|
Executive Vice President, Chief Financial Officer and Treasurer
|
Date: May 7, 2019
|
|
/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
|