|
Exact Name of Registrant as Specified in Its Charter
|
|
Commission File Number
|
|
I.R.S. Employer Identification No.
|
|
HAWAIIAN ELECTRIC INDUSTRIES, INC.
|
|
1-8503
|
|
99-0208097
|
|
and Principal Subsidiary
|
||||
|
HAWAIIAN ELECTRIC COMPANY, INC.
|
|
1-4955
|
|
99-0040500
|
|
Registrant
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
Hawaiian Electric Industries, Inc.
|
Common Stock, Without Par Value
|
HE
|
New York Stock Exchange
|
|
Hawaiian Electric Industries, Inc.
|
Yes
|
☒
|
No
|
☐
|
|
Hawaiian Electric Company, Inc.
|
Yes
|
☒
|
No
|
☐
|
|
Hawaiian Electric Industries, Inc.
|
Yes
|
☒
|
No
|
☐
|
|
Hawaiian Electric Company, Inc.
|
Yes
|
☒
|
No
|
☐
|
|
Hawaiian Electric Industries, Inc.:
|
|
Hawaiian Electric Company, Inc.:
|
|
||||
|
Large accelerated filer
|
☒
|
Smaller reporting company
|
☐
|
Large accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
Accelerated filer
|
☐
|
Emerging growth company
|
☐
|
Accelerated filer
|
☐
|
Emerging growth company
|
☐
|
|
Non-accelerated filer
|
☐
|
|
|
Non-accelerated filer
|
☒
|
|
|
|
Hawaiian Electric Industries, Inc.
|
☐
|
|
Hawaiian Electric Company, Inc.
|
☐
|
|
Hawaiian Electric Industries, Inc.
|
Yes
|
☐
|
No
|
☒
|
|
Hawaiian Electric Company, Inc.
|
Yes
|
☐
|
No
|
☒
|
|
Class of Common Stock
|
|
Outstanding July 26, 2019
|
||
|
Hawaiian Electric Industries, Inc. (Without Par Value)
|
|
108,972,564
|
|
Shares
|
|
Hawaiian Electric Company, Inc. ($6-2/3 Par Value)
|
|
16,751,488
|
|
Shares (not publicly traded)
|
|
Page No.
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Terms
|
|
Definitions
|
|
ADIT
|
|
Accumulated deferred income tax balances
|
|
AES Hawaii
|
|
AES Hawaii, Inc.
|
|
AFUDC
|
|
Allowance for funds used during construction
|
|
AOCI
|
|
Accumulated other comprehensive income/(loss)
|
|
ASB
|
|
American Savings Bank, F.S.B., a wholly-owned subsidiary of ASB Hawaii, Inc.
|
|
ASB Hawaii
|
|
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.
|
|
ASC
|
|
Accounting Standards Codification
|
|
ASU
|
|
Accounting Standards Update
|
|
CBRE
|
|
Community-based renewable energy
|
|
CIAC
|
|
Contributions in aid of construction
|
|
CIP CT-1
|
|
Campbell Industrial Park 110 MW combustion turbine No. 1
|
|
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.)
|
|
Consumer Advocate
|
|
Division of Consumer Advocacy, Department of Commerce and Consumer Affairs of the State of Hawaii
|
|
D&O
|
|
Decision and order from the PUC
|
|
DER
|
|
Distributed energy resources
|
|
Dodd-Frank Act
|
|
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
|
|
DOH
|
|
Department of Health of the State of Hawaii
|
|
DRIP
|
|
HEI Dividend Reinvestment and Stock Purchase Plan
|
|
ECAC
|
|
Energy cost adjustment clause
|
|
ECRC
|
|
Energy cost recovery clause
|
|
EIP
|
|
2010 Equity and Incentive Plan, as amended and restated
|
|
EPA
|
|
Environmental Protection Agency — federal
|
|
ERP/EAM
|
|
Enterprise Resource Planning/Enterprise Asset Management
|
|
EPS
|
|
Earnings per share
|
|
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
|
|
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.
|
|
Hawaii Electric Light
|
|
Hawaii Electric Light Company, Inc., an electric utility subsidiary of Hawaiian Electric Company, Inc.
|
|
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, Renewable Hawaii, Inc. and Uluwehiokama Biofuels Corp. HECO Capital Trust III (unconsolidated financing subsidiary) was canceled effective June 10, 2019.
|
|
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.)
|
|
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
|
|
Maui Electric Company, Limited, an electric utility subsidiary of Hawaiian Electric Company, Inc.
|
|
Mauo
|
|
Mauo, LLC, an indirect subsidiary of HEI
|
|
MPIR
|
|
Major Project Interim Recovery
|
|
MSR
|
|
Mortgage servicing right
|
|
MW
|
|
Megawatt/s (as applicable)
|
|
NEM
|
|
Net energy metering
|
|
NII
|
|
Net interest income
|
|
NPBC
|
|
Net periodic benefit costs
|
|
NPPC
|
|
Net periodic pension costs
|
|
O&M
|
|
Other operation and maintenance
|
|
OCC
|
|
Office of the Comptroller of the Currency
|
|
OPEB
|
|
Postretirement benefits other than pensions
|
|
Pacific Current
|
|
Pacific Current, LLC, a wholly owned subsidiary of HEI and parent company of Hamakua Holdings, LLC and Mauo Holdings, LLC
|
|
PBR
|
|
Performance-based regulation
|
|
PIMs
|
|
Performance incentive mechanisms
|
|
PPA
|
|
Power purchase agreement
|
|
PPAC
|
|
Purchased power adjustment clause
|
|
PSIPs
|
|
Power Supply Improvement Plans
|
|
PUC
|
|
Public Utilities Commission of the State of Hawaii
|
|
PV
|
|
Photovoltaic
|
|
RAM
|
|
Rate adjustment mechanism
|
|
RBA
|
|
Revenue balancing account
|
|
RFP
|
|
Request for proposals
|
|
ROACE
|
|
Return on average common equity
|
|
RORB
|
|
Return on rate base
|
|
RPS
|
|
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
|
|
Troubled debt restructuring
|
|
Trust III
|
|
HECO Capital Trust III was canceled effective June 10, 2019.
|
|
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 increasing 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;
|
|
•
|
cybersecurity 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 to achieve cost savings consistent with the minimum $246 million in ERP/EAM project-related benefits (including $150 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;
|
|
•
|
the adoption of FASB ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” in 2020, which may require an increase in the allowance for loan losses, as well as the volatility in the level of the allowance for loans losses;
|
|
•
|
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).
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
(in thousands, except per share amounts)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Electric utility
|
|
$
|
633,784
|
|
|
$
|
608,126
|
|
|
$
|
1,212,279
|
|
|
$
|
1,178,553
|
|
|
Bank
|
|
81,687
|
|
|
77,104
|
|
|
164,739
|
|
|
152,523
|
|
||||
|
Other
|
|
14
|
|
|
47
|
|
|
82
|
|
|
75
|
|
||||
|
Total revenues
|
|
715,485
|
|
|
685,277
|
|
|
1,377,100
|
|
|
1,331,151
|
|
||||
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Electric utility
|
|
578,090
|
|
|
552,982
|
|
|
1,100,025
|
|
|
1,072,040
|
|
||||
|
Bank
|
|
60,435
|
|
|
50,187
|
|
|
117,365
|
|
|
100,719
|
|
||||
|
Other
|
|
4,326
|
|
|
3,309
|
|
|
9,139
|
|
|
7,704
|
|
||||
|
Total expenses
|
|
642,851
|
|
|
606,478
|
|
|
1,226,529
|
|
|
1,180,463
|
|
||||
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Electric utility
|
|
55,694
|
|
|
55,144
|
|
|
112,254
|
|
|
106,513
|
|
||||
|
Bank
|
|
21,252
|
|
|
26,917
|
|
|
47,374
|
|
|
51,804
|
|
||||
|
Other
|
|
(4,312
|
)
|
|
(3,262
|
)
|
|
(9,057
|
)
|
|
(7,629
|
)
|
||||
|
Total operating income
|
|
72,634
|
|
|
78,799
|
|
|
150,571
|
|
|
150,688
|
|
||||
|
Retirement defined benefits expense—other than service costs
|
|
(761
|
)
|
|
(1,564
|
)
|
|
(1,524
|
)
|
|
(3,397
|
)
|
||||
|
Interest expense, net—other than on deposit liabilities and other bank borrowings
|
|
(23,533
|
)
|
|
(22,001
|
)
|
|
(46,656
|
)
|
|
(43,519
|
)
|
||||
|
Allowance for borrowed funds used during construction
|
|
1,179
|
|
|
1,365
|
|
|
2,257
|
|
|
2,809
|
|
||||
|
Allowance for equity funds used during construction
|
|
3,175
|
|
|
2,983
|
|
|
6,085
|
|
|
6,277
|
|
||||
|
Income before income taxes
|
|
52,694
|
|
|
59,582
|
|
|
110,733
|
|
|
112,858
|
|
||||
|
Income taxes
|
|
9,709
|
|
|
13,055
|
|
|
21,587
|
|
|
25,611
|
|
||||
|
Net income
|
|
42,985
|
|
|
46,527
|
|
|
89,146
|
|
|
87,247
|
|
||||
|
Preferred stock dividends of subsidiaries
|
|
473
|
|
|
473
|
|
|
946
|
|
|
946
|
|
||||
|
Net income for common stock
|
|
$
|
42,512
|
|
|
$
|
46,054
|
|
|
$
|
88,200
|
|
|
$
|
86,301
|
|
|
Basic earnings per common share
|
|
$
|
0.39
|
|
|
$
|
0.42
|
|
|
$
|
0.81
|
|
|
$
|
0.79
|
|
|
Diluted earnings per common share
|
|
$
|
0.39
|
|
|
$
|
0.42
|
|
|
$
|
0.81
|
|
|
$
|
0.79
|
|
|
Weighted-average number of common shares outstanding
|
|
108,938
|
|
|
108,842
|
|
|
108,925
|
|
|
108,830
|
|
||||
|
Net effect of potentially dilutive shares
|
|
317
|
|
|
121
|
|
|
399
|
|
|
223
|
|
||||
|
Weighted-average shares assuming dilution
|
|
109,255
|
|
|
108,963
|
|
|
109,324
|
|
|
109,053
|
|
||||
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
(in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Net income for common stock
|
|
$
|
42,512
|
|
|
$
|
46,054
|
|
|
$
|
88,200
|
|
|
$
|
86,301
|
|
|
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 $(5,182), $1,592, $(8,637) and $6,459, respectively
|
|
14,154
|
|
|
(4,348
|
)
|
|
23,593
|
|
|
(17,645
|
)
|
||||
|
Derivatives qualifying as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Unrealized interest rate hedging losses arising during the period, net of tax benefits of $380, nil, $520 and nil, respectively
|
|
(660
|
)
|
|
—
|
|
|
(1,063
|
)
|
|
—
|
|
||||
|
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 $871, $1,862, $1,741 and $3,654, respectively
|
|
2,503
|
|
|
5,350
|
|
|
5,006
|
|
|
10,496
|
|
||||
|
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $797, $1,674, $1,594 and $3,277, respectively
|
|
(2,298
|
)
|
|
(4,827
|
)
|
|
(4,596
|
)
|
|
(9,449
|
)
|
||||
|
Other comprehensive income (loss), net of taxes
|
|
13,699
|
|
|
(3,825
|
)
|
|
22,940
|
|
|
(16,598
|
)
|
||||
|
Comprehensive income attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
56,211
|
|
|
$
|
42,229
|
|
|
$
|
111,140
|
|
|
$
|
69,703
|
|
|
(dollars in thousands)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
Assets
|
|
|
|
|
|
|
||
|
Cash and cash equivalents
|
|
$
|
198,549
|
|
|
$
|
169,208
|
|
|
Accounts receivable and unbilled revenues, net
|
|
309,285
|
|
|
325,672
|
|
||
|
Available-for-sale investment securities, at fair value
|
|
1,298,010
|
|
|
1,388,533
|
|
||
|
Held-to-maturity investment securities, at amortized cost
|
|
137,029
|
|
|
141,875
|
|
||
|
Stock in Federal Home Loan Bank, at cost
|
|
8,434
|
|
|
9,958
|
|
||
|
Loans held for investment, net
|
|
4,950,064
|
|
|
4,790,902
|
|
||
|
Loans held for sale, at lower of cost or fair value
|
|
9,196
|
|
|
1,805
|
|
||
|
Property, plant and equipment, net of accumulated depreciation of $2,722,430 and $2,659,230 at June 30, 2019 and December 31, 2018, respectively
|
|
4,932,245
|
|
|
4,830,118
|
|
||
|
Operating lease right-of-use assets
|
|
226,157
|
|
|
—
|
|
||
|
Regulatory assets
|
|
787,765
|
|
|
833,426
|
|
||
|
Other
|
|
598,842
|
|
|
530,364
|
|
||
|
Goodwill
|
|
82,190
|
|
|
82,190
|
|
||
|
Total assets
|
|
$
|
13,537,766
|
|
|
$
|
13,104,051
|
|
|
Liabilities and shareholders’ equity
|
|
|
|
|
|
|
||
|
Liabilities
|
|
|
|
|
|
|
||
|
Accounts payable
|
|
$
|
190,412
|
|
|
$
|
214,773
|
|
|
Interest and dividends payable
|
|
28,373
|
|
|
28,254
|
|
||
|
Deposit liabilities
|
|
6,257,383
|
|
|
6,158,852
|
|
||
|
Short-term borrowings—other than bank
|
|
211,893
|
|
|
73,992
|
|
||
|
Other bank borrowings
|
|
111,485
|
|
|
110,040
|
|
||
|
Long-term debt, net—other than bank
|
|
1,884,030
|
|
|
1,879,641
|
|
||
|
Deferred income taxes
|
|
380,233
|
|
|
372,518
|
|
||
|
Operating lease liabilities
|
|
225,865
|
|
|
—
|
|
||
|
Regulatory liabilities
|
|
952,546
|
|
|
950,236
|
|
||
|
Defined benefit pension and other postretirement benefit plans liability
|
|
538,751
|
|
|
538,384
|
|
||
|
Other
|
|
513,916
|
|
|
580,788
|
|
||
|
Total liabilities
|
|
11,294,887
|
|
|
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: 108,972,492 shares and 108,879,245 shares at June 30, 2019 and December 31, 2018, respectively
|
|
1,674,153
|
|
|
1,669,267
|
|
||
|
Retained earnings
|
|
562,103
|
|
|
543,623
|
|
||
|
Accumulated other comprehensive loss, net of tax benefits
|
|
(27,670
|
)
|
|
(50,610
|
)
|
||
|
Total shareholders’ equity
|
|
2,208,586
|
|
|
2,162,280
|
|
||
|
Total liabilities and shareholders’ equity
|
|
$
|
13,537,766
|
|
|
$
|
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 income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
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
|
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
42,512
|
|
|
—
|
|
|
42,512
|
|
||||
|
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,699
|
|
|
13,699
|
|
||||
|
Share-based expenses and other, net
|
|
35
|
|
|
3,720
|
|
|
—
|
|
|
—
|
|
|
3,720
|
|
||||
|
Common stock dividends (32¢ per share)
|
|
—
|
|
|
—
|
|
|
(34,860
|
)
|
|
—
|
|
|
(34,860
|
)
|
||||
|
Balance, June 30, 2019
|
|
108,972
|
|
|
$
|
1,674,153
|
|
|
$
|
562,103
|
|
|
$
|
(27,670
|
)
|
|
$
|
2,208,586
|
|
|
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
|
|
||||
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
46,054
|
|
|
—
|
|
|
46,054
|
|
||||
|
Other comprehensive loss, net of tax benefits
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,825
|
)
|
|
(3,825
|
)
|
||||
|
Share-based expenses and other, net
|
|
38
|
|
|
2,752
|
|
|
—
|
|
|
—
|
|
|
2,752
|
|
||||
|
Common stock dividends (31¢ per share)
|
|
—
|
|
|
—
|
|
|
(33,740
|
)
|
|
—
|
|
|
(33,740
|
)
|
||||
|
Balance, June 30, 2018
|
|
108,879
|
|
|
$
|
1,665,901
|
|
|
$
|
495,656
|
|
|
$
|
(58,539
|
)
|
|
$
|
2,103,018
|
|
|
|
|
Six months ended June 30
|
||||||
|
(in thousands)
|
|
2019
|
|
2018
|
||||
|
Cash flows from operating activities
|
|
|
|
|
|
|
||
|
Net income
|
|
$
|
89,146
|
|
|
$
|
87,247
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||
|
Depreciation of property, plant and equipment
|
|
114,863
|
|
|
106,063
|
|
||
|
Other amortization
|
|
22,439
|
|
|
20,603
|
|
||
|
Provision for loan losses
|
|
14,558
|
|
|
6,304
|
|
||
|
Loans originated and purchased, held for sale
|
|
(96,033
|
)
|
|
(78,313
|
)
|
||
|
Proceeds from sale of loans, held for sale
|
|
89,573
|
|
|
77,382
|
|
||
|
Deferred income taxes
|
|
(6,662
|
)
|
|
(9,672
|
)
|
||
|
Share-based compensation expense
|
|
5,883
|
|
|
4,414
|
|
||
|
Allowance for equity funds used during construction
|
|
(6,085
|
)
|
|
(6,277
|
)
|
||
|
Other
|
|
(7,320
|
)
|
|
(147
|
)
|
||
|
Changes in assets and liabilities
|
|
|
|
|
|
|
||
|
Decrease (increase) in accounts receivable and unbilled revenues, net
|
|
12,850
|
|
|
(41,526
|
)
|
||
|
Increase in fuel oil stock
|
|
(40,557
|
)
|
|
(19,867
|
)
|
||
|
Decrease (increase) in regulatory assets
|
|
25,392
|
|
|
(19,600
|
)
|
||
|
Increase in accounts, interest and dividends payable
|
|
3,926
|
|
|
31,784
|
|
||
|
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes
|
|
(45,977
|
)
|
|
(26,558
|
)
|
||
|
Decrease in defined benefit pension and other postretirement benefit plans liability
|
|
(1,774
|
)
|
|
(871
|
)
|
||
|
Change in other assets and liabilities
|
|
(40,816
|
)
|
|
(22,695
|
)
|
||
|
Net cash provided by operating activities
|
|
133,406
|
|
|
108,271
|
|
||
|
Cash flows from investing activities
|
|
|
|
|
|
|
||
|
Available-for-sale investment securities purchased
|
|
(4,530
|
)
|
|
(133,698
|
)
|
||
|
Principal repayments on available-for-sale investment securities
|
|
123,855
|
|
|
108,379
|
|
||
|
Purchases of held-to-maturity investment securities
|
|
—
|
|
|
(20,450
|
)
|
||
|
Principal repayments of held-to-maturity investment securities
|
|
4,774
|
|
|
2,270
|
|
||
|
Purchase of stock from Federal Home Loan Bank
|
|
(53,115
|
)
|
|
(7,533
|
)
|
||
|
Redemption of stock from Federal Home Loan Bank
|
|
54,640
|
|
|
7,080
|
|
||
|
Net increase in loans held for investment
|
|
(173,546
|
)
|
|
(111,521
|
)
|
||
|
Capital expenditures
|
|
(229,282
|
)
|
|
(246,325
|
)
|
||
|
Contributions to low income housing investments
|
|
(4,069
|
)
|
|
(3,279
|
)
|
||
|
Other
|
|
6,143
|
|
|
13,657
|
|
||
|
Net cash used in investing activities
|
|
(275,130
|
)
|
|
(391,420
|
)
|
||
|
Cash flows from financing activities
|
|
|
|
|
|
|
||
|
Net increase in deposit liabilities
|
|
98,531
|
|
|
123,137
|
|
||
|
Net increase in short-term borrowings with original maturities of three months or less
|
|
112,901
|
|
|
84,881
|
|
||
|
Net increase in other bank borrowings with original maturities of three months or less
|
|
1,445
|
|
|
38,446
|
|
||
|
Proceeds from issuance of short-term debt
|
|
25,000
|
|
|
—
|
|
||
|
Proceeds from issuance of long-term debt
|
|
56,150
|
|
|
100,000
|
|
||
|
Repayment of long-term debt
|
|
(52,489
|
)
|
|
(878
|
)
|
||
|
Withheld shares for employee taxes on vested share-based compensation
|
|
(996
|
)
|
|
(996
|
)
|
||
|
Common stock dividends
|
|
(69,720
|
)
|
|
(67,481
|
)
|
||
|
Preferred stock dividends of subsidiaries
|
|
(946
|
)
|
|
(946
|
)
|
||
|
Other
|
|
1,189
|
|
|
(230
|
)
|
||
|
Net cash provided by financing activities
|
|
171,065
|
|
|
275,933
|
|
||
|
Net increase (decrease) in cash and cash equivalents
|
|
29,341
|
|
|
(7,216
|
)
|
||
|
Cash and cash equivalents, beginning of period
|
|
169,208
|
|
|
261,881
|
|
||
|
Cash and cash equivalents, end of period
|
|
$
|
198,549
|
|
|
$
|
254,665
|
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
(in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Revenues
|
|
$
|
633,784
|
|
|
$
|
608,126
|
|
|
$
|
1,212,279
|
|
|
$
|
1,178,553
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Fuel oil
|
|
181,620
|
|
|
171,717
|
|
|
342,229
|
|
|
338,685
|
|
||||
|
Purchased power
|
|
162,854
|
|
|
160,738
|
|
|
297,299
|
|
|
300,648
|
|
||||
|
Other operation and maintenance
|
|
119,260
|
|
|
112,642
|
|
|
237,390
|
|
|
220,252
|
|
||||
|
Depreciation
|
|
53,913
|
|
|
50,361
|
|
|
107,860
|
|
|
100,827
|
|
||||
|
Taxes, other than income taxes
|
|
60,443
|
|
|
57,524
|
|
|
115,247
|
|
|
111,628
|
|
||||
|
Total expenses
|
|
578,090
|
|
|
552,982
|
|
|
1,100,025
|
|
|
1,072,040
|
|
||||
|
Operating income
|
|
55,694
|
|
|
55,144
|
|
|
112,254
|
|
|
106,513
|
|
||||
|
Allowance for equity funds used during construction
|
|
3,175
|
|
|
2,983
|
|
|
6,085
|
|
|
6,277
|
|
||||
|
Retirement defined benefits expense—other than service costs
|
|
(701
|
)
|
|
(988
|
)
|
|
(1,404
|
)
|
|
(2,252
|
)
|
||||
|
Interest expense and other charges, net
|
|
(18,530
|
)
|
|
(18,160
|
)
|
|
(36,516
|
)
|
|
(35,854
|
)
|
||||
|
Allowance for borrowed funds used during construction
|
|
1,179
|
|
|
1,365
|
|
|
2,257
|
|
|
2,809
|
|
||||
|
Income before income taxes
|
|
40,817
|
|
|
40,344
|
|
|
82,676
|
|
|
77,493
|
|
||||
|
Income taxes
|
|
7,744
|
|
|
8,676
|
|
|
16,978
|
|
|
17,851
|
|
||||
|
Net income
|
|
33,073
|
|
|
31,668
|
|
|
65,698
|
|
|
59,642
|
|
||||
|
Preferred stock dividends of subsidiaries
|
|
229
|
|
|
229
|
|
|
458
|
|
|
458
|
|
||||
|
Net income attributable to Hawaiian Electric
|
|
32,844
|
|
|
31,439
|
|
|
65,240
|
|
|
59,184
|
|
||||
|
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
270
|
|
|
540
|
|
|
540
|
|
||||
|
Net income for common stock
|
|
$
|
32,574
|
|
|
$
|
31,169
|
|
|
$
|
64,700
|
|
|
$
|
58,644
|
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
(in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Net income for common stock
|
|
$
|
32,574
|
|
|
$
|
31,169
|
|
|
$
|
64,700
|
|
|
$
|
58,644
|
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $805, $1,683, $1,610 and $3,297, respectively
|
|
2,321
|
|
|
4,853
|
|
|
4,643
|
|
|
9,506
|
|
||||
|
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $797, $1,674, $1,594 and $3,277, respectively
|
|
(2,298
|
)
|
|
(4,827
|
)
|
|
(4,596
|
)
|
|
(9,449
|
)
|
||||
|
Other comprehensive income, net of taxes
|
|
23
|
|
|
26
|
|
|
47
|
|
|
57
|
|
||||
|
Comprehensive income attributable to Hawaiian Electric Company, Inc.
|
|
$
|
32,597
|
|
|
$
|
31,195
|
|
|
$
|
64,747
|
|
|
$
|
58,701
|
|
|
(dollars in thousands, except par value)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
Assets
|
|
|
|
|
|
|
||
|
Property, plant and equipment
|
|
|
|
|
||||
|
Utility property, plant and equipment
|
|
|
|
|
|
|
||
|
Land
|
|
$
|
51,401
|
|
|
$
|
49,667
|
|
|
Plant and equipment
|
|
6,939,043
|
|
|
6,809,671
|
|
||
|
Less accumulated depreciation
|
|
(2,650,210
|
)
|
|
(2,577,342
|
)
|
||
|
Construction in progress
|
|
275,312
|
|
|
233,145
|
|
||
|
Utility property, plant and equipment, net
|
|
4,615,546
|
|
|
4,515,141
|
|
||
|
Nonutility property, plant and equipment, less accumulated depreciation of $109 and $1,255 as of June 30, 2019 and December 31, 2018, respectively
|
|
6,959
|
|
|
6,961
|
|
||
|
Total property, plant and equipment, net
|
|
4,622,505
|
|
|
4,522,102
|
|
||
|
Current assets
|
|
|
|
|
|
|
||
|
Cash and cash equivalents
|
|
23,361
|
|
|
35,877
|
|
||
|
Customer accounts receivable, net
|
|
162,089
|
|
|
177,896
|
|
||
|
Accrued unbilled revenues, net
|
|
119,148
|
|
|
121,738
|
|
||
|
Other accounts receivable, net
|
|
8,489
|
|
|
6,215
|
|
||
|
Fuel oil stock, at average cost
|
|
121,641
|
|
|
79,935
|
|
||
|
Materials and supplies, at average cost
|
|
61,094
|
|
|
55,204
|
|
||
|
Prepayments and other
|
|
31,986
|
|
|
32,118
|
|
||
|
Regulatory assets
|
|
55,625
|
|
|
71,016
|
|
||
|
Total current assets
|
|
583,433
|
|
|
579,999
|
|
||
|
Other long-term assets
|
|
|
|
|
|
|
||
|
Operating lease right-of-use assets
|
|
207,132
|
|
|
—
|
|
||
|
Regulatory assets
|
|
732,140
|
|
|
762,410
|
|
||
|
Other
|
|
108,636
|
|
|
102,992
|
|
||
|
Total other long-term assets
|
|
1,047,908
|
|
|
865,402
|
|
||
|
Total assets
|
|
$
|
6,253,846
|
|
|
$
|
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 June 30, 2019 and December 31, 2018)
|
|
$
|
111,696
|
|
|
$
|
111,696
|
|
|
Premium on capital stock
|
|
681,305
|
|
|
681,305
|
|
||
|
Retained earnings
|
|
1,178,615
|
|
|
1,164,541
|
|
||
|
Accumulated other comprehensive income, net of taxes-retirement benefit plans
|
|
146
|
|
|
99
|
|
||
|
Common stock equity
|
|
1,971,762
|
|
|
1,957,641
|
|
||
|
Cumulative preferred stock — not subject to mandatory redemption
|
|
34,293
|
|
|
34,293
|
|
||
|
Long-term debt, net
|
|
1,335,978
|
|
|
1,418,802
|
|
||
|
Total capitalization
|
|
3,342,033
|
|
|
3,410,736
|
|
||
|
Commitments and contingencies (Note 3)
|
|
|
|
|
|
|
||
|
Current liabilities
|
|
|
|
|
|
|
||
|
Current portion of operating lease liabilities
|
|
62,063
|
|
|
—
|
|
||
|
Current portion of long-term debt
|
|
81,939
|
|
|
—
|
|
||
|
Short-term borrowings from non-affiliates
|
|
161,901
|
|
|
25,000
|
|
||
|
Accounts payable
|
|
154,505
|
|
|
171,791
|
|
||
|
Interest and preferred dividends payable
|
|
23,345
|
|
|
23,215
|
|
||
|
Taxes accrued, including revenue taxes
|
|
183,466
|
|
|
233,333
|
|
||
|
Regulatory liabilities
|
|
14,953
|
|
|
17,977
|
|
||
|
Other
|
|
62,052
|
|
|
60,003
|
|
||
|
Total current liabilities
|
|
744,224
|
|
|
531,319
|
|
||
|
Deferred credits and other liabilities
|
|
|
|
|
|
|
||
|
Operating lease liabilities
|
|
144,769
|
|
|
—
|
|
||
|
Deferred income taxes
|
|
382,564
|
|
|
383,197
|
|
||
|
Regulatory liabilities
|
|
937,593
|
|
|
932,259
|
|
||
|
Unamortized tax credits
|
|
91,614
|
|
|
91,522
|
|
||
|
Defined benefit pension and other postretirement benefit plans liability
|
|
504,247
|
|
|
503,659
|
|
||
|
Other
|
|
106,802
|
|
|
114,811
|
|
||
|
Total deferred credits and other liabilities
|
|
2,167,589
|
|
|
2,025,448
|
|
||
|
Total capitalization and liabilities
|
|
$
|
6,253,846
|
|
|
$
|
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
|
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,574
|
|
|
—
|
|
|
32,574
|
|
|||||
|
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
|||||
|
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,313
|
)
|
|
—
|
|
|
(25,313
|
)
|
|||||
|
Balance, June 30, 2019
|
|
16,751
|
|
|
$
|
111,696
|
|
|
$
|
681,305
|
|
|
$
|
1,178,615
|
|
|
$
|
146
|
|
|
$
|
1,971,762
|
|
|
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
|
|
|
Net income for common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,169
|
|
|
—
|
|
|
31,169
|
|
|||||
|
Other comprehensive income, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
26
|
|
|||||
|
Common stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,826
|
)
|
|
—
|
|
|
(25,826
|
)
|
|||||
|
Balance, June 30, 2018
|
|
16,142
|
|
|
$
|
107,634
|
|
|
$
|
614,667
|
|
|
$
|
1,131,185
|
|
|
$
|
(1,162
|
)
|
|
$
|
1,852,324
|
|
|
|
|
Six months ended June 30
|
||||||
|
(in thousands)
|
|
2019
|
|
2018
|
||||
|
Cash flows from operating activities
|
|
|
|
|
|
|
||
|
Net income
|
|
$
|
65,698
|
|
|
$
|
59,642
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||
|
Depreciation of property, plant and equipment
|
|
107,860
|
|
|
100,827
|
|
||
|
Other amortization
|
|
13,661
|
|
|
13,021
|
|
||
|
Deferred income taxes
|
|
(6,611
|
)
|
|
(8,343
|
)
|
||
|
Allowance for equity funds used during construction
|
|
(6,085
|
)
|
|
(6,277
|
)
|
||
|
Other
|
|
(3,553
|
)
|
|
978
|
|
||
|
Changes in assets and liabilities
|
|
|
|
|
|
|
||
|
Decrease (increase) in accounts receivable
|
|
9,994
|
|
|
(34,068
|
)
|
||
|
Decrease (increase) in accrued unbilled revenues
|
|
2,590
|
|
|
(3,785
|
)
|
||
|
Increase in fuel oil stock
|
|
(41,706
|
)
|
|
(20,143
|
)
|
||
|
Increase in materials and supplies
|
|
(5,890
|
)
|
|
(3,544
|
)
|
||
|
Decrease (increase) in regulatory assets
|
|
25,392
|
|
|
(19,600
|
)
|
||
|
Increase (decrease) in accounts payable
|
|
(45
|
)
|
|
18,284
|
|
||
|
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
|
(45,785
|
)
|
|
(31,061
|
)
|
||
|
Decrease in defined benefit pension and other postretirement benefit plans liability
|
|
(1,899
|
)
|
|
(1,961
|
)
|
||
|
Change in other assets and liabilities
|
|
(12,805
|
)
|
|
5,866
|
|
||
|
Net cash provided by operating activities
|
|
100,816
|
|
|
69,836
|
|
||
|
Cash flows from investing activities
|
|
|
|
|
|
|
||
|
Capital expenditures
|
|
(199,896
|
)
|
|
(199,647
|
)
|
||
|
Other
|
|
2,510
|
|
|
4,301
|
|
||
|
Net cash used in investing activities
|
|
(197,386
|
)
|
|
(195,346
|
)
|
||
|
Cash flows from financing activities
|
|
|
|
|
|
|
||
|
Common stock dividends
|
|
(50,626
|
)
|
|
(51,652
|
)
|
||
|
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(998
|
)
|
|
(998
|
)
|
||
|
Proceeds from issuance of short-term debt
|
|
25,000
|
|
|
—
|
|
||
|
Proceeds from issuance of long-term debt
|
|
50,000
|
|
|
100,000
|
|
||
|
Repayment of long-term debt
|
|
(51,546
|
)
|
|
—
|
|
||
|
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
111,901
|
|
|
86,881
|
|
||
|
Other
|
|
323
|
|
|
(378
|
)
|
||
|
Net cash provided by financing activities
|
|
84,054
|
|
|
133,853
|
|
||
|
Net increase (decrease) in cash and cash equivalents
|
|
(12,516
|
)
|
|
8,343
|
|
||
|
Cash and cash equivalents, beginning of period
|
|
35,877
|
|
|
12,517
|
|
||
|
Cash and cash equivalents, end of period
|
|
$
|
23,361
|
|
|
$
|
20,860
|
|
|
•
|
With respect to Topic 326, Financial Instruments - Credit Losses, ASU No. 2019-04 allows entities to measure the allowance for credit losses on accrued interest receivable balances separately from other components of the amortized cost basis of associated financial assets, or to make an accounting policy election not to measure an allowance for credit losses on accrued interest receivable amounts if an entity writes off the uncollectible accrued interest receivable balance in a timely manner and makes certain disclosures. ASU No. 2019-04 also allows an entity to make an accounting policy election regarding the presentation and disclosure of accrued interest receivables and the related allowance for credit losses for those accrued interest receivables. ASU No. 2019-04 also clarifies certain issues related to transfers between classifications or categories for loans and debt securities, recoveries, variable interest rates and prepayments, vintage disclosures, and contractual extensions and renewal options.
|
|
•
|
With respect to Topic 815, Derivatives and Hedging, ASU No. 2019-04 provides amendments, among others, that address partial-term fair value hedges, fair value hedge basis adjustments, and certain transition requirements.
|
|
•
|
With respect to Topic 825, Financial Instruments, ASU No. 2019-04 clarifies the scope of the guidance and disclosure requirements with respect to recognizing and measuring financial instruments.
|
|
(in thousands)
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
||||||||
|
Three months ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenues from external customers
|
|
$
|
633,771
|
|
|
$
|
81,687
|
|
|
$
|
27
|
|
|
$
|
715,485
|
|
|
Intersegment revenues (eliminations)
|
|
13
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
||||
|
Revenues
|
|
$
|
633,784
|
|
|
$
|
81,687
|
|
|
$
|
14
|
|
|
$
|
715,485
|
|
|
Income (loss) before income taxes
|
|
$
|
40,817
|
|
|
$
|
21,292
|
|
|
$
|
(9,415
|
)
|
|
$
|
52,694
|
|
|
Income taxes (benefit)
|
|
7,744
|
|
|
4,276
|
|
|
(2,311
|
)
|
|
9,709
|
|
||||
|
Net income (loss)
|
|
33,073
|
|
|
17,016
|
|
|
(7,104
|
)
|
|
42,985
|
|
||||
|
Preferred stock dividends of subsidiaries
|
|
499
|
|
|
—
|
|
|
(26
|
)
|
|
473
|
|
||||
|
Net income (loss) for common stock
|
|
$
|
32,574
|
|
|
$
|
17,016
|
|
|
$
|
(7,078
|
)
|
|
$
|
42,512
|
|
|
Six months ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenues from external customers
|
|
$
|
1,212,253
|
|
|
$
|
164,739
|
|
|
$
|
108
|
|
|
$
|
1,377,100
|
|
|
Intersegment revenues (eliminations)
|
|
26
|
|
|
—
|
|
|
(26
|
)
|
|
—
|
|
||||
|
Revenues
|
|
$
|
1,212,279
|
|
|
$
|
164,739
|
|
|
$
|
82
|
|
|
$
|
1,377,100
|
|
|
Income (loss) before income taxes
|
|
$
|
82,676
|
|
|
$
|
47,454
|
|
|
$
|
(19,397
|
)
|
|
$
|
110,733
|
|
|
Income taxes (benefit)
|
|
16,978
|
|
|
9,599
|
|
|
(4,990
|
)
|
|
21,587
|
|
||||
|
Net income (loss)
|
|
65,698
|
|
|
37,855
|
|
|
(14,407
|
)
|
|
89,146
|
|
||||
|
Preferred stock dividends of subsidiaries
|
|
998
|
|
|
—
|
|
|
(52
|
)
|
|
946
|
|
||||
|
Net income (loss) for common stock
|
|
$
|
64,700
|
|
|
$
|
37,855
|
|
|
$
|
(14,355
|
)
|
|
$
|
88,200
|
|
|
Total assets (at June 30, 2019)
|
|
$
|
6,253,846
|
|
|
$
|
7,164,054
|
|
|
$
|
119,866
|
|
|
$
|
13,537,766
|
|
|
Three months ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenues from external customers
|
|
$
|
608,112
|
|
|
$
|
77,104
|
|
|
$
|
61
|
|
|
$
|
685,277
|
|
|
Intersegment revenues (eliminations)
|
|
14
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
||||
|
Revenues
|
|
$
|
608,126
|
|
|
$
|
77,104
|
|
|
$
|
47
|
|
|
$
|
685,277
|
|
|
Income (loss) before income taxes
|
|
$
|
40,344
|
|
|
$
|
26,514
|
|
|
$
|
(7,276
|
)
|
|
$
|
59,582
|
|
|
Income taxes (benefit)
|
|
8,676
|
|
|
5,953
|
|
|
(1,574
|
)
|
|
13,055
|
|
||||
|
Net income (loss)
|
|
31,668
|
|
|
20,561
|
|
|
(5,702
|
)
|
|
46,527
|
|
||||
|
Preferred stock dividends of subsidiaries
|
|
499
|
|
|
—
|
|
|
(26
|
)
|
|
473
|
|
||||
|
Net income (loss) for common stock
|
|
$
|
31,169
|
|
|
$
|
20,561
|
|
|
$
|
(5,676
|
)
|
|
$
|
46,054
|
|
|
Six months ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenues from external customers
|
|
$
|
1,178,526
|
|
|
$
|
152,523
|
|
|
$
|
102
|
|
|
$
|
1,331,151
|
|
|
Intersegment revenues (eliminations)
|
|
27
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
||||
|
Revenues
|
|
$
|
1,178,553
|
|
|
$
|
152,523
|
|
|
$
|
75
|
|
|
$
|
1,331,151
|
|
|
Income (loss) before income taxes
|
|
$
|
77,493
|
|
|
$
|
51,014
|
|
|
$
|
(15,649
|
)
|
|
$
|
112,858
|
|
|
Income taxes (benefit)
|
|
17,851
|
|
|
11,493
|
|
|
(3,733
|
)
|
|
25,611
|
|
||||
|
Net income (loss)
|
|
59,642
|
|
|
39,521
|
|
|
(11,916
|
)
|
|
87,247
|
|
||||
|
Preferred stock dividends of subsidiaries
|
|
998
|
|
|
—
|
|
|
(52
|
)
|
|
946
|
|
||||
|
Net income (loss) for common stock
|
|
$
|
58,644
|
|
|
$
|
39,521
|
|
|
$
|
(11,864
|
)
|
|
$
|
86,301
|
|
|
Total assets (at December 31, 2018)
|
|
$
|
5,967,503
|
|
|
$
|
7,027,894
|
|
|
$
|
108,654
|
|
|
$
|
13,104,051
|
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Kalaeloa
|
|
$
|
61
|
|
|
$
|
52
|
|
|
$
|
101
|
|
|
$
|
92
|
|
|
AES Hawaii
|
|
32
|
|
|
32
|
|
|
64
|
|
|
69
|
|
||||
|
HPOWER
|
|
19
|
|
|
17
|
|
|
37
|
|
|
32
|
|
||||
|
Puna Geothermal Venture
|
|
—
|
|
|
4
|
|
|
—
|
|
|
15
|
|
||||
|
Hamakua Energy
|
|
18
|
|
|
15
|
|
|
34
|
|
|
22
|
|
||||
|
Wind IPPs
|
|
23
|
|
|
31
|
|
|
43
|
|
|
53
|
|
||||
|
Solar IPPs
|
|
8
|
|
|
8
|
|
|
15
|
|
|
14
|
|
||||
|
Other IPPs 1
|
|
1
|
|
|
2
|
|
|
2
|
|
|
4
|
|
||||
|
Total IPPs
|
|
$
|
162
|
|
|
$
|
161
|
|
|
$
|
296
|
|
|
$
|
301
|
|
|
1
|
Includes hydro power and other PPAs
|
|
•
|
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).
|
|
•
|
In 2018, the Utilities accrued $2.1 million in estimated penalties for service reliability net of call center performance incentives for 2018. As a result of a PUC order denying the exclusion of the impact of a specific project on the service reliability performance, in May 2019, Hawaiian Electric accrued an additional $1.3 million in service reliability penalties related to 2018. The net service quality performance penalties related to 2018 were reflected in the 2019 annual decoupling filing and will reduce customer rates in the period June 1, 2019 through May 31, 2020.
|
|
•
|
In May 2019, the Utilities filed an application for approval to among other things, modify the measurement of performance for the System Average Interruption Duration and Frequency Indexes, adjust the PIM targets, deadbands, and financial incentive levels for each of the PIMs upon issuance of a final order in a general rate case, and adjust the call center performance PIM level for Hawaii Electric Light.
|
|
•
|
Procurement of low-cost variable renewable resources through the request for proposal process in 2018 is 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 contract 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, which were reflected in the 2019 annual decoupling filing and will be recovered in rates in the period June 1, 2019 through May 31, 2020.
|
|
(in millions)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Total
|
||||||||
|
2019 Annual incremental RAM adjusted revenues, net of changes in Tax Act adjustment*
|
|
$
|
6.5
|
|
|
$
|
1.1
|
|
|
$
|
5.4
|
|
|
$
|
13.0
|
|
|
Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery
|
|
(12.2
|
)
|
|
(2.0
|
)
|
|
0.8
|
|
|
(13.4
|
)
|
||||
|
Performance Incentive Mechanisms (net)
|
|
(1.3
|
)
|
|
—
|
|
|
(0.4
|
)
|
|
(1.7
|
)
|
||||
|
Net annual incremental amount to be collected (refunded) under the tariffs
|
|
$
|
(7.0
|
)
|
|
$
|
(0.9
|
)
|
|
$
|
5.8
|
|
|
$
|
(2.1
|
)
|
|
•
|
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
|
|
$
|
450,020
|
|
|
89,916
|
|
|
94,050
|
|
|
—
|
|
|
(202
|
)
|
|
$
|
633,784
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Fuel oil
|
|
125,431
|
|
|
19,941
|
|
|
36,248
|
|
|
—
|
|
|
—
|
|
|
181,620
|
|
||
|
Purchased power
|
|
126,871
|
|
|
24,029
|
|
|
11,954
|
|
|
—
|
|
|
—
|
|
|
162,854
|
|
||
|
Other operation and maintenance
|
|
78,551
|
|
|
18,031
|
|
|
22,678
|
|
|
—
|
|
|
—
|
|
|
119,260
|
|
||
|
Depreciation
|
|
35,868
|
|
|
10,453
|
|
|
7,592
|
|
|
—
|
|
|
—
|
|
|
53,913
|
|
||
|
Taxes, other than income taxes
|
|
42,590
|
|
|
8,706
|
|
|
9,147
|
|
|
—
|
|
|
—
|
|
|
60,443
|
|
||
|
Total expenses
|
|
409,311
|
|
|
81,160
|
|
|
87,619
|
|
|
—
|
|
|
—
|
|
|
578,090
|
|
||
|
Operating income
|
|
40,709
|
|
|
8,756
|
|
|
6,431
|
|
|
—
|
|
|
(202
|
)
|
|
55,694
|
|
||
|
Allowance for equity funds used during construction
|
|
2,614
|
|
|
218
|
|
|
343
|
|
|
—
|
|
|
—
|
|
|
3,175
|
|
||
|
Equity in earnings of subsidiaries
|
|
8,086
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,086
|
)
|
|
—
|
|
||
|
Retirement defined benefits expense—other than service costs
|
|
(567
|
)
|
|
(105
|
)
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
(701
|
)
|
||
|
Interest expense and other charges, net
|
|
(13,390
|
)
|
|
(2,920
|
)
|
|
(2,422
|
)
|
|
—
|
|
|
202
|
|
|
(18,530
|
)
|
||
|
Allowance for borrowed funds used during construction
|
|
962
|
|
|
91
|
|
|
126
|
|
|
—
|
|
|
—
|
|
|
1,179
|
|
||
|
Income before income taxes
|
|
38,414
|
|
|
6,040
|
|
|
4,449
|
|
|
—
|
|
|
(8,086
|
)
|
|
40,817
|
|
||
|
Income taxes
|
|
5,570
|
|
|
1,241
|
|
|
933
|
|
|
—
|
|
|
—
|
|
|
7,744
|
|
||
|
Net income
|
|
32,844
|
|
|
4,799
|
|
|
3,516
|
|
|
—
|
|
|
(8,086
|
)
|
|
33,073
|
|
||
|
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
133
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
229
|
|
||
|
Net income attributable to Hawaiian Electric
|
|
32,844
|
|
|
4,666
|
|
|
3,420
|
|
|
—
|
|
|
(8,086
|
)
|
|
32,844
|
|
||
|
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
||
|
Net income for common stock
|
|
$
|
32,574
|
|
|
4,666
|
|
|
3,420
|
|
|
—
|
|
|
(8,086
|
)
|
|
$
|
32,574
|
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries |
|
Consolidating
adjustments |
|
Hawaiian Electric
Consolidated |
||||||||
|
Net income for common stock
|
|
$
|
32,574
|
|
|
4,666
|
|
|
3,420
|
|
|
—
|
|
|
(8,086
|
)
|
|
$
|
32,574
|
|
|
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
|
|
2,321
|
|
|
352
|
|
|
289
|
|
|
—
|
|
|
(641
|
)
|
|
2,321
|
|
||
|
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
|
|
23
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
23
|
|
||
|
Comprehensive income attributable to common shareholder
|
|
$
|
32,597
|
|
|
4,667
|
|
|
3,420
|
|
|
—
|
|
|
(8,087
|
)
|
|
$
|
32,597
|
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
|
Revenues
|
|
$
|
431,699
|
|
|
89,548
|
|
|
86,938
|
|
|
—
|
|
|
(59
|
)
|
|
$
|
608,126
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Fuel oil
|
|
120,007
|
|
|
19,432
|
|
|
32,278
|
|
|
—
|
|
|
—
|
|
|
171,717
|
|
||
|
Purchased power
|
|
121,812
|
|
|
24,664
|
|
|
14,262
|
|
|
—
|
|
|
—
|
|
|
160,738
|
|
||
|
Other operation and maintenance
|
|
76,845
|
|
|
19,015
|
|
|
16,782
|
|
|
—
|
|
|
—
|
|
|
112,642
|
|
||
|
Depreciation
|
|
34,391
|
|
|
10,038
|
|
|
5,932
|
|
|
—
|
|
|
—
|
|
|
50,361
|
|
||
|
Taxes, other than income taxes
|
|
40,951
|
|
|
8,408
|
|
|
8,165
|
|
|
—
|
|
|
—
|
|
|
57,524
|
|
||
|
Total expenses
|
|
394,006
|
|
|
81,557
|
|
|
77,419
|
|
|
—
|
|
|
—
|
|
|
552,982
|
|
||
|
Operating income
|
|
37,693
|
|
|
7,991
|
|
|
9,519
|
|
|
—
|
|
|
(59
|
)
|
|
55,144
|
|
||
|
Allowance for equity funds used during construction
|
|
2,588
|
|
|
124
|
|
|
271
|
|
|
—
|
|
|
—
|
|
|
2,983
|
|
||
|
Equity in earnings of subsidiaries
|
|
9,080
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,080
|
)
|
|
—
|
|
||
|
Retirement defined benefits expense—other than service costs
|
|
(554
|
)
|
|
(105
|
)
|
|
(329
|
)
|
|
—
|
|
|
—
|
|
|
(988
|
)
|
||
|
Interest expense and other charges, net
|
|
(12,930
|
)
|
|
(2,922
|
)
|
|
(2,367
|
)
|
|
—
|
|
|
59
|
|
|
(18,160
|
)
|
||
|
Allowance for borrowed funds used during construction
|
|
1,150
|
|
|
77
|
|
|
138
|
|
|
—
|
|
|
—
|
|
|
1,365
|
|
||
|
Income before income taxes
|
|
37,027
|
|
|
5,165
|
|
|
7,232
|
|
|
—
|
|
|
(9,080
|
)
|
|
40,344
|
|
||
|
Income taxes
|
|
5,588
|
|
|
1,269
|
|
|
1,819
|
|
|
—
|
|
|
—
|
|
|
8,676
|
|
||
|
Net income
|
|
31,439
|
|
|
3,896
|
|
|
5,413
|
|
|
—
|
|
|
(9,080
|
)
|
|
31,668
|
|
||
|
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
133
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
229
|
|
||
|
Net income attributable to Hawaiian Electric
|
|
31,439
|
|
|
3,763
|
|
|
5,317
|
|
|
—
|
|
|
(9,080
|
)
|
|
31,439
|
|
||
|
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
||
|
Net income for common stock
|
|
$
|
31,169
|
|
|
3,763
|
|
|
5,317
|
|
|
—
|
|
|
(9,080
|
)
|
|
$
|
31,169
|
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries |
|
Consolidating
adjustments |
|
Hawaiian Electric
Consolidated |
||||||||
|
Net income for common stock
|
|
$
|
31,169
|
|
|
3,763
|
|
|
5,317
|
|
|
—
|
|
|
(9,080
|
)
|
|
$
|
31,169
|
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
|
|
4,853
|
|
|
734
|
|
|
649
|
|
|
—
|
|
|
(1,383
|
)
|
|
4,853
|
|
||
|
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(4,827
|
)
|
|
(733
|
)
|
|
(649
|
)
|
|
—
|
|
|
1,382
|
|
|
(4,827
|
)
|
||
|
Other comprehensive income, net of taxes
|
|
26
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
26
|
|
||
|
Comprehensive income attributable to common shareholder
|
|
$
|
31,195
|
|
|
3,764
|
|
|
5,317
|
|
|
—
|
|
|
(9,081
|
)
|
|
$
|
31,195
|
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
|
Revenues
|
|
$
|
855,689
|
|
|
177,121
|
|
|
179,703
|
|
|
—
|
|
|
(234
|
)
|
|
$
|
1,212,279
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Fuel oil
|
|
234,353
|
|
|
40,783
|
|
|
67,093
|
|
|
—
|
|
|
—
|
|
|
342,229
|
|
||
|
Purchased power
|
|
232,094
|
|
|
43,206
|
|
|
21,999
|
|
|
—
|
|
|
—
|
|
|
297,299
|
|
||
|
Other operation and maintenance
|
|
159,729
|
|
|
36,767
|
|
|
40,894
|
|
|
—
|
|
|
—
|
|
|
237,390
|
|
||
|
Depreciation
|
|
71,735
|
|
|
20,906
|
|
|
15,219
|
|
|
—
|
|
|
—
|
|
|
107,860
|
|
||
|
Taxes, other than income taxes
|
|
81,221
|
|
|
16,811
|
|
|
17,215
|
|
|
—
|
|
|
—
|
|
|
115,247
|
|
||
|
Total expenses
|
|
779,132
|
|
|
158,473
|
|
|
162,420
|
|
|
—
|
|
|
—
|
|
|
1,100,025
|
|
||
|
Operating income
|
|
76,557
|
|
|
18,648
|
|
|
17,283
|
|
|
—
|
|
|
(234
|
)
|
|
112,254
|
|
||
|
Allowance for equity funds used during construction
|
|
5,061
|
|
|
350
|
|
|
674
|
|
|
—
|
|
|
—
|
|
|
6,085
|
|
||
|
Equity in earnings of subsidiaries
|
|
19,935
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,935
|
)
|
|
—
|
|
||
|
Retirement defined benefits expense—other than service costs
|
|
(1,134
|
)
|
|
(211
|
)
|
|
(59
|
)
|
|
—
|
|
|
—
|
|
|
(1,404
|
)
|
||
|
Interest expense and other charges, net
|
|
(26,190
|
)
|
|
(5,821
|
)
|
|
(4,739
|
)
|
|
—
|
|
|
234
|
|
|
(36,516
|
)
|
||
|
Allowance for borrowed funds used during construction
|
|
1,864
|
|
|
147
|
|
|
246
|
|
|
—
|
|
|
—
|
|
|
2,257
|
|
||
|
Income before income taxes
|
|
76,093
|
|
|
13,113
|
|
|
13,405
|
|
|
—
|
|
|
(19,935
|
)
|
|
82,676
|
|
||
|
Income taxes
|
|
10,853
|
|
|
3,011
|
|
|
3,114
|
|
|
—
|
|
|
—
|
|
|
16,978
|
|
||
|
Net income
|
|
65,240
|
|
|
10,102
|
|
|
10,291
|
|
|
—
|
|
|
(19,935
|
)
|
|
65,698
|
|
||
|
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
267
|
|
|
191
|
|
|
—
|
|
|
—
|
|
|
458
|
|
||
|
Net income attributable to Hawaiian Electric
|
|
65,240
|
|
|
9,835
|
|
|
10,100
|
|
|
—
|
|
|
(19,935
|
)
|
|
65,240
|
|
||
|
Preferred stock dividends of Hawaiian Electric
|
|
540
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
540
|
|
||
|
Net income for common stock
|
|
$
|
64,700
|
|
|
9,835
|
|
|
10,100
|
|
|
—
|
|
|
(19,935
|
)
|
|
$
|
64,700
|
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
|
Net income for common stock
|
|
$
|
64,700
|
|
|
9,835
|
|
|
10,100
|
|
|
—
|
|
|
(19,935
|
)
|
|
$
|
64,700
|
|
|
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
|
|
4,643
|
|
|
704
|
|
|
578
|
|
|
—
|
|
|
(1,282
|
)
|
|
4,643
|
|
||
|
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(4,596
|
)
|
|
(702
|
)
|
|
(578
|
)
|
|
—
|
|
|
1,280
|
|
|
(4,596
|
)
|
||
|
Other comprehensive income, net of taxes
|
|
47
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
47
|
|
||
|
Comprehensive income attributable to common shareholder
|
|
$
|
64,747
|
|
|
9,837
|
|
|
10,100
|
|
|
—
|
|
|
(19,937
|
)
|
|
$
|
64,747
|
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other subsidiaries
|
|
Consolidating adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
|
Revenues
|
|
$
|
832,879
|
|
|
177,481
|
|
|
168,294
|
|
|
—
|
|
|
(101
|
)
|
|
$
|
1,178,553
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Fuel oil
|
|
234,505
|
|
|
37,919
|
|
|
66,261
|
|
|
—
|
|
|
—
|
|
|
338,685
|
|
||
|
Purchased power
|
|
229,182
|
|
|
48,498
|
|
|
22,968
|
|
|
—
|
|
|
—
|
|
|
300,648
|
|
||
|
Other operation and maintenance
|
|
149,785
|
|
|
35,113
|
|
|
35,354
|
|
|
—
|
|
|
—
|
|
|
220,252
|
|
||
|
Depreciation
|
|
68,830
|
|
|
20,093
|
|
|
11,904
|
|
|
—
|
|
|
—
|
|
|
100,827
|
|
||
|
Taxes, other than income taxes
|
|
79,118
|
|
|
16,620
|
|
|
15,890
|
|
|
—
|
|
|
—
|
|
|
111,628
|
|
||
|
Total expenses
|
|
761,420
|
|
|
158,243
|
|
|
152,377
|
|
|
—
|
|
|
—
|
|
|
1,072,040
|
|
||
|
Operating income
|
|
71,459
|
|
|
19,238
|
|
|
15,917
|
|
|
—
|
|
|
(101
|
)
|
|
106,513
|
|
||
|
Allowance for equity funds used during construction
|
|
5,475
|
|
|
235
|
|
|
567
|
|
|
—
|
|
|
—
|
|
|
6,277
|
|
||
|
Equity in earnings of subsidiaries
|
|
18,405
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,405
|
)
|
|
—
|
|
||
|
Retirement defined benefits expense—other than service costs
|
|
(1,616
|
)
|
|
(208
|
)
|
|
(428
|
)
|
|
—
|
|
|
—
|
|
|
(2,252
|
)
|
||
|
Interest expense and other charges, net
|
|
(25,425
|
)
|
|
(5,829
|
)
|
|
(4,701
|
)
|
|
—
|
|
|
101
|
|
|
(35,854
|
)
|
||
|
Allowance for borrowed funds used during construction
|
|
2,388
|
|
|
141
|
|
|
280
|
|
|
—
|
|
|
—
|
|
|
2,809
|
|
||
|
Income before income taxes
|
|
70,686
|
|
|
13,577
|
|
|
11,635
|
|
|
—
|
|
|
(18,405
|
)
|
|
77,493
|
|
||
|
Income taxes
|
|
11,502
|
|
|
3,446
|
|
|
2,903
|
|
|
—
|
|
|
—
|
|
|
17,851
|
|
||
|
Net income
|
|
59,184
|
|
|
10,131
|
|
|
8,732
|
|
|
—
|
|
|
(18,405
|
)
|
|
59,642
|
|
||
|
Preferred stock dividends of subsidiaries
|
|
—
|
|
|
267
|
|
|
191
|
|
|
—
|
|
|
—
|
|
|
458
|
|
||
|
Net income attributable to Hawaiian Electric
|
|
59,184
|
|
|
9,864
|
|
|
8,541
|
|
|
—
|
|
|
(18,405
|
)
|
|
59,184
|
|
||
|
Preferred stock dividends of Hawaiian Electric
|
|
540
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
540
|
|
||
|
Net income for common stock
|
|
$
|
58,644
|
|
|
9,864
|
|
|
8,541
|
|
|
—
|
|
|
(18,405
|
)
|
|
$
|
58,644
|
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
|
Net income for common stock
|
|
$
|
58,644
|
|
|
9,864
|
|
|
8,541
|
|
|
—
|
|
|
(18,405
|
)
|
|
$
|
58,644
|
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
|
|
9,506
|
|
|
1,409
|
|
|
1,211
|
|
|
—
|
|
|
(2,620
|
)
|
|
9,506
|
|
||
|
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
|
(9,449
|
)
|
|
(1,408
|
)
|
|
(1,211
|
)
|
|
—
|
|
|
2,619
|
|
|
(9,449
|
)
|
||
|
Other comprehensive income, net of taxes
|
|
57
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
57
|
|
||
|
Comprehensive income attributable to common shareholder
|
|
$
|
58,701
|
|
|
9,865
|
|
|
8,541
|
|
|
—
|
|
|
(18,406
|
)
|
|
$
|
58,701
|
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consoli-
dating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Utility property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Land
|
|
$
|
42,183
|
|
|
5,606
|
|
|
3,612
|
|
|
—
|
|
|
—
|
|
|
$
|
51,401
|
|
|
Plant and equipment
|
|
4,558,178
|
|
|
1,268,694
|
|
|
1,112,171
|
|
|
—
|
|
|
—
|
|
|
6,939,043
|
|
||
|
Less accumulated depreciation
|
|
(1,573,545
|
)
|
|
(562,286
|
)
|
|
(514,379
|
)
|
|
—
|
|
|
—
|
|
|
(2,650,210
|
)
|
||
|
Construction in progress
|
|
222,328
|
|
|
17,791
|
|
|
35,193
|
|
|
—
|
|
|
—
|
|
|
275,312
|
|
||
|
Utility property, plant and equipment, net
|
|
3,249,144
|
|
|
729,805
|
|
|
636,597
|
|
|
—
|
|
|
—
|
|
|
4,615,546
|
|
||
|
Nonutility property, plant and equipment, less accumulated depreciation
|
|
5,312
|
|
|
115
|
|
|
1,532
|
|
|
—
|
|
|
—
|
|
|
6,959
|
|
||
|
Total property, plant and equipment, net
|
|
3,254,456
|
|
|
729,920
|
|
|
638,129
|
|
|
—
|
|
|
—
|
|
|
4,622,505
|
|
||
|
Investment in wholly owned subsidiaries, at equity
|
|
584,149
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(584,149
|
)
|
|
—
|
|
||
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Cash and cash equivalents
|
|
17,121
|
|
|
3,352
|
|
|
2,787
|
|
|
101
|
|
|
—
|
|
|
23,361
|
|
||
|
Advances to affiliates
|
|
25,300
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
(30,300
|
)
|
|
—
|
|
||
|
Customer accounts receivable, net
|
|
109,401
|
|
|
26,864
|
|
|
25,824
|
|
|
—
|
|
|
—
|
|
|
162,089
|
|
||
|
Accrued unbilled revenues, net
|
|
86,291
|
|
|
15,429
|
|
|
17,428
|
|
|
—
|
|
|
—
|
|
|
119,148
|
|
||
|
Other accounts receivable, net
|
|
17,447
|
|
|
8,526
|
|
|
2,086
|
|
|
—
|
|
|
(19,570
|
)
|
|
8,489
|
|
||
|
Fuel oil stock, at average cost
|
|
100,903
|
|
|
11,376
|
|
|
9,362
|
|
|
—
|
|
|
—
|
|
|
121,641
|
|
||
|
Materials and supplies, at average cost
|
|
33,874
|
|
|
9,611
|
|
|
17,609
|
|
|
—
|
|
|
—
|
|
|
61,094
|
|
||
|
Prepayments and other
|
|
23,804
|
|
|
5,202
|
|
|
2,980
|
|
|
—
|
|
|
—
|
|
|
31,986
|
|
||
|
Regulatory assets
|
|
46,673
|
|
|
2,122
|
|
|
6,830
|
|
|
—
|
|
|
—
|
|
|
55,625
|
|
||
|
Total current assets
|
|
460,814
|
|
|
87,482
|
|
|
84,906
|
|
|
101
|
|
|
(49,870
|
)
|
|
583,433
|
|
||
|
Other long-term assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Operating lease right-of-use assets
|
|
205,148
|
|
|
1,582
|
|
|
402
|
|
|
—
|
|
|
—
|
|
|
207,132
|
|
||
|
Regulatory assets
|
|
513,738
|
|
|
115,178
|
|
|
103,224
|
|
|
—
|
|
|
—
|
|
|
732,140
|
|
||
|
Other
|
|
74,994
|
|
|
16,677
|
|
|
16,965
|
|
|
—
|
|
|
—
|
|
|
108,636
|
|
||
|
Total other long-term assets
|
|
793,880
|
|
|
133,437
|
|
|
120,591
|
|
|
—
|
|
|
—
|
|
|
1,047,908
|
|
||
|
Total assets
|
|
$
|
5,093,299
|
|
|
950,839
|
|
|
843,626
|
|
|
101
|
|
|
(634,019
|
)
|
|
$
|
6,253,846
|
|
|
Capitalization and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Capitalization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Common stock equity
|
|
$
|
1,971,762
|
|
|
300,619
|
|
|
283,429
|
|
|
101
|
|
|
(584,149
|
)
|
|
$
|
1,971,762
|
|
|
Cumulative preferred stock—not subject to mandatory redemption
|
|
22,293
|
|
|
7,000
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
34,293
|
|
||
|
Long-term debt, net
|
|
937,068
|
|
|
217,845
|
|
|
181,065
|
|
|
—
|
|
|
—
|
|
|
1,335,978
|
|
||
|
Total capitalization
|
|
2,931,123
|
|
|
525,464
|
|
|
469,494
|
|
|
101
|
|
|
(584,149
|
)
|
|
3,342,033
|
|
||
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Current portion of operating lease liabilities
|
|
61,941
|
|
|
92
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
62,063
|
|
||
|
Current portion of long-term debt
|
|
61,946
|
|
|
—
|
|
|
19,993
|
|
|
—
|
|
|
—
|
|
|
81,939
|
|
||
|
Short-term borrowings from non-affiliates
|
|
161,901
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
161,901
|
|
||
|
Short-term borrowings from affiliate
|
|
5,000
|
|
|
—
|
|
|
25,300
|
|
|
—
|
|
|
(30,300
|
)
|
|
—
|
|
||
|
Accounts payable
|
|
121,032
|
|
|
15,059
|
|
|
18,414
|
|
|
—
|
|
|
—
|
|
|
154,505
|
|
||
|
Interest and preferred dividends payable
|
|
16,287
|
|
|
4,225
|
|
|
2,914
|
|
|
—
|
|
|
(81
|
)
|
|
23,345
|
|
||
|
Taxes accrued
|
|
127,413
|
|
|
28,748
|
|
|
27,305
|
|
|
—
|
|
|
—
|
|
|
183,466
|
|
||
|
Regulatory liabilities
|
|
5,687
|
|
|
5,781
|
|
|
3,485
|
|
|
—
|
|
|
—
|
|
|
14,953
|
|
||
|
Other
|
|
53,450
|
|
|
14,842
|
|
|
13,249
|
|
|
—
|
|
|
(19,489
|
)
|
|
62,052
|
|
||
|
Total current liabilities
|
|
614,657
|
|
|
68,747
|
|
|
110,690
|
|
|
—
|
|
|
(49,870
|
)
|
|
744,224
|
|
||
|
Deferred credits and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Operating lease liabilities
|
|
142,905
|
|
|
1,490
|
|
|
374
|
|
|
—
|
|
|
—
|
|
|
144,769
|
|
||
|
Deferred income taxes
|
|
271,441
|
|
|
53,564
|
|
|
57,559
|
|
|
—
|
|
|
—
|
|
|
382,564
|
|
||
|
Regulatory liabilities
|
|
660,351
|
|
|
178,018
|
|
|
99,224
|
|
|
—
|
|
|
—
|
|
|
937,593
|
|
||
|
Unamortized tax credits
|
|
60,375
|
|
|
16,514
|
|
|
14,725
|
|
|
—
|
|
|
—
|
|
|
91,614
|
|
||
|
Defined benefit pension and other postretirement benefit plans liability
|
|
362,174
|
|
|
71,830
|
|
|
70,243
|
|
|
—
|
|
|
—
|
|
|
504,247
|
|
||
|
Other
|
|
50,273
|
|
|
35,212
|
|
|
21,317
|
|
|
—
|
|
|
—
|
|
|
106,802
|
|
||
|
Total deferred credits and other liabilities
|
|
1,547,519
|
|
|
356,628
|
|
|
263,442
|
|
|
—
|
|
|
—
|
|
|
2,167,589
|
|
||
|
Total capitalization and liabilities
|
|
$
|
5,093,299
|
|
|
950,839
|
|
|
843,626
|
|
|
101
|
|
|
(634,019
|
)
|
|
$
|
6,253,846
|
|
|
(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
|
|
||
|
Net income for common stock
|
|
32,574
|
|
|
4,666
|
|
|
3,420
|
|
|
—
|
|
|
(8,086
|
)
|
|
32,574
|
|
||
|
Other comprehensive income, net of taxes
|
|
23
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
23
|
|
||
|
Common stock dividends
|
|
(25,313
|
)
|
|
(2,545
|
)
|
|
(3,767
|
)
|
|
—
|
|
|
6,312
|
|
|
(25,313
|
)
|
||
|
Balance, June 30, 2019
|
|
$
|
1,971,762
|
|
|
300,619
|
|
|
283,429
|
|
|
101
|
|
|
(584,149
|
)
|
|
$
|
1,971,762
|
|
|
(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
|
|
||
|
Net income for common stock
|
|
31,169
|
|
|
3,763
|
|
|
5,317
|
|
|
—
|
|
|
(9,080
|
)
|
|
31,169
|
|
||
|
Other comprehensive income, net of taxes
|
|
26
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
26
|
|
||
|
Common stock dividends
|
|
(25,826
|
)
|
|
(3,823
|
)
|
|
(3,004
|
)
|
|
—
|
|
|
6,827
|
|
|
(25,826
|
)
|
||
|
Common stock issuance expenses
|
|
—
|
|
|
(3
|
)
|
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||
|
Balance, June 30, 2018
|
|
$
|
1,852,324
|
|
|
288,865
|
|
|
272,798
|
|
|
101
|
|
|
(561,764
|
)
|
|
$
|
1,852,324
|
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Hawaiian Electric
Consolidated |
||||||||
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Net income
|
|
$
|
65,240
|
|
|
10,102
|
|
|
10,291
|
|
|
—
|
|
|
(19,935
|
)
|
|
$
|
65,698
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Equity in earnings of subsidiaries
|
|
(19,972
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,935
|
|
|
(37
|
)
|
||
|
Common stock dividends received from subsidiaries
|
|
12,661
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,624
|
)
|
|
37
|
|
||
|
Depreciation of property, plant and equipment
|
|
71,735
|
|
|
20,906
|
|
|
15,219
|
|
|
—
|
|
|
—
|
|
|
107,860
|
|
||
|
Other amortization
|
|
11,444
|
|
|
2,142
|
|
|
75
|
|
|
—
|
|
|
—
|
|
|
13,661
|
|
||
|
Deferred income taxes
|
|
(5,354
|
)
|
|
(1,554
|
)
|
|
297
|
|
|
—
|
|
|
—
|
|
|
(6,611
|
)
|
||
|
Allowance for equity funds used during construction
|
|
(5,061
|
)
|
|
(350
|
)
|
|
(674
|
)
|
|
—
|
|
|
—
|
|
|
(6,085
|
)
|
||
|
Other
|
|
(2,494
|
)
|
|
(292
|
)
|
|
(767
|
)
|
|
—
|
|
|
—
|
|
|
(3,553
|
)
|
||
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Decrease (increase) in accounts receivable
|
|
19,969
|
|
|
(6,446
|
)
|
|
(1,188
|
)
|
|
—
|
|
|
(2,341
|
)
|
|
9,994
|
|
||
|
Decrease (increase) in accrued unbilled revenues
|
|
1,769
|
|
|
1,622
|
|
|
(801
|
)
|
|
—
|
|
|
—
|
|
|
2,590
|
|
||
|
Decrease (increase) in fuel oil stock
|
|
(46,641
|
)
|
|
(349
|
)
|
|
5,284
|
|
|
—
|
|
|
—
|
|
|
(41,706
|
)
|
||
|
Decrease (increase) in materials and supplies
|
|
(3,583
|
)
|
|
(2,456
|
)
|
|
149
|
|
|
—
|
|
|
—
|
|
|
(5,890
|
)
|
||
|
Decrease (increase) in regulatory assets
|
|
24,318
|
|
|
2,288
|
|
|
(1,214
|
)
|
|
—
|
|
|
—
|
|
|
25,392
|
|
||
|
Increase (decrease) in accounts payable
|
|
5,804
|
|
|
(3,454
|
)
|
|
(2,395
|
)
|
|
—
|
|
|
—
|
|
|
(45
|
)
|
||
|
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
|
(34,328
|
)
|
|
(5,111
|
)
|
|
(6,346
|
)
|
|
—
|
|
|
—
|
|
|
(45,785
|
)
|
||
|
Decrease in defined benefit pension and other postretirement benefit plans liability
|
|
(1,205
|
)
|
|
(377
|
)
|
|
(317
|
)
|
|
—
|
|
|
—
|
|
|
(1,899
|
)
|
||
|
Change in other assets and liabilities
|
|
(9,875
|
)
|
|
(265
|
)
|
|
(5,006
|
)
|
|
—
|
|
|
2,341
|
|
|
(12,805
|
)
|
||
|
Net cash provided by operating activities
|
|
84,427
|
|
|
16,406
|
|
|
12,607
|
|
|
—
|
|
|
(12,624
|
)
|
|
100,816
|
|
||
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Capital expenditures
|
|
(150,945
|
)
|
|
(18,083
|
)
|
|
(30,868
|
)
|
|
—
|
|
|
—
|
|
|
(199,896
|
)
|
||
|
Advances to affiliates
|
|
(25,300
|
)
|
|
(5,000
|
)
|
|
—
|
|
|
—
|
|
|
30,300
|
|
|
—
|
|
||
|
Other
|
|
2,821
|
|
|
(280
|
)
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
2,510
|
|
||
|
Net cash used in investing activities
|
|
(173,424
|
)
|
|
(23,363
|
)
|
|
(30,899
|
)
|
|
—
|
|
|
30,300
|
|
|
(197,386
|
)
|
||
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Common stock dividends
|
|
(50,626
|
)
|
|
(5,090
|
)
|
|
(7,534
|
)
|
|
—
|
|
|
12,624
|
|
|
(50,626
|
)
|
||
|
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(540
|
)
|
|
(267
|
)
|
|
(191
|
)
|
|
—
|
|
|
—
|
|
|
(998
|
)
|
||
|
Proceeds from issuance of short-term debt
|
|
25,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,000
|
|
||
|
Proceeds from issuance of long-term debt
|
|
30,000
|
|
|
10,000
|
|
|
10,000
|
|
|
—
|
|
|
—
|
|
|
50,000
|
|
||
|
Repayment of long-term debt
|
|
(31,546
|
)
|
|
(10,000
|
)
|
|
(10,000
|
)
|
|
—
|
|
|
—
|
|
|
(51,546
|
)
|
||
|
Increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
116,901
|
|
|
—
|
|
|
25,300
|
|
|
—
|
|
|
(30,300
|
)
|
|
111,901
|
|
||
|
Other
|
|
197
|
|
|
43
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
323
|
|
||
|
Net cash provided by (used in) financing activities
|
|
89,386
|
|
|
(5,314
|
)
|
|
17,658
|
|
|
—
|
|
|
(17,676
|
)
|
|
84,054
|
|
||
|
Net increase (decrease) in cash and cash equivalents
|
|
389
|
|
|
(12,271
|
)
|
|
(634
|
)
|
|
—
|
|
|
—
|
|
|
(12,516
|
)
|
||
|
Cash and cash equivalents, beginning of period
|
|
16,732
|
|
|
15,623
|
|
|
3,421
|
|
|
101
|
|
|
—
|
|
|
35,877
|
|
||
|
Cash and cash equivalents, end of period
|
|
$
|
17,121
|
|
|
3,352
|
|
|
2,787
|
|
|
101
|
|
|
—
|
|
|
$
|
23,361
|
|
|
(in thousands)
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Other
subsidiaries |
|
Consolidating
adjustments |
|
Hawaiian Electric
Consolidated |
||||||||
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Net income
|
|
$
|
59,184
|
|
|
10,131
|
|
|
8,732
|
|
|
—
|
|
|
(18,405
|
)
|
|
$
|
59,642
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Equity in earnings of subsidiaries
|
|
(18,455
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,405
|
|
|
(50
|
)
|
||
|
Common stock dividends received from subsidiaries
|
|
13,679
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,654
|
)
|
|
25
|
|
||
|
Depreciation of property, plant and equipment
|
|
68,830
|
|
|
20,093
|
|
|
11,904
|
|
|
—
|
|
|
—
|
|
|
100,827
|
|
||
|
Other amortization
|
|
9,200
|
|
|
2,976
|
|
|
845
|
|
|
—
|
|
|
—
|
|
|
13,021
|
|
||
|
Deferred income taxes
|
|
(6,708
|
)
|
|
(2,429
|
)
|
|
794
|
|
|
—
|
|
|
—
|
|
|
(8,343
|
)
|
||
|
Allowance for equity funds used during construction
|
|
(5,475
|
)
|
|
(235
|
)
|
|
(567
|
)
|
|
—
|
|
|
—
|
|
|
(6,277
|
)
|
||
|
Other
|
|
1,469
|
|
|
(322
|
)
|
|
(169
|
)
|
|
—
|
|
|
—
|
|
|
978
|
|
||
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Increase in accounts receivable
|
|
(25,673
|
)
|
|
(2,387
|
)
|
|
(5,763
|
)
|
|
—
|
|
|
(245
|
)
|
|
(34,068
|
)
|
||
|
Decrease (increase) in accrued unbilled revenues
|
|
(3,063
|
)
|
|
697
|
|
|
(1,419
|
)
|
|
—
|
|
|
—
|
|
|
(3,785
|
)
|
||
|
Increase in fuel oil stock
|
|
(9,513
|
)
|
|
(3,934
|
)
|
|
(6,696
|
)
|
|
—
|
|
|
—
|
|
|
(20,143
|
)
|
||
|
Increase in materials and supplies
|
|
(2,752
|
)
|
|
(559
|
)
|
|
(233
|
)
|
|
—
|
|
|
—
|
|
|
(3,544
|
)
|
||
|
Increase in regulatory assets
|
|
(14,728
|
)
|
|
(1,974
|
)
|
|
(2,898
|
)
|
|
—
|
|
|
—
|
|
|
(19,600
|
)
|
||
|
Increase in accounts payable
|
|
13,093
|
|
|
3,096
|
|
|
2,095
|
|
|
—
|
|
|
—
|
|
|
18,284
|
|
||
|
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
|
(15,343
|
)
|
|
(9,952
|
)
|
|
(5,165
|
)
|
|
—
|
|
|
(601
|
)
|
|
(31,061
|
)
|
||
|
Decrease in defined benefit pension and other postretirement benefit plans liability
|
|
(1,117
|
)
|
|
(380
|
)
|
|
(464
|
)
|
|
—
|
|
|
—
|
|
|
(1,961
|
)
|
||
|
Change in other assets and liabilities
|
|
1,116
|
|
|
3,173
|
|
|
1,357
|
|
|
—
|
|
|
245
|
|
|
5,891
|
|
||
|
Net cash provided by operating activities
|
|
63,744
|
|
|
17,994
|
|
|
2,353
|
|
|
—
|
|
|
(14,255
|
)
|
|
69,836
|
|
||
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Capital expenditures
|
|
(146,920
|
)
|
|
(24,424
|
)
|
|
(28,303
|
)
|
|
—
|
|
|
—
|
|
|
(199,647
|
)
|
||
|
Advances (to) from affiliates
|
|
(5,600
|
)
|
|
(1,000
|
)
|
|
12,000
|
|
|
—
|
|
|
(5,400
|
)
|
|
—
|
|
||
|
Other
|
|
2,241
|
|
|
884
|
|
|
575
|
|
|
—
|
|
|
601
|
|
|
4,301
|
|
||
|
Net cash used in investing activities
|
|
(150,279
|
)
|
|
(24,540
|
)
|
|
(15,728
|
)
|
|
—
|
|
|
(4,799
|
)
|
|
(195,346
|
)
|
||
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Common stock dividends
|
|
(51,652
|
)
|
|
(7,644
|
)
|
|
(6,010
|
)
|
|
—
|
|
|
13,654
|
|
|
(51,652
|
)
|
||
|
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
|
(540
|
)
|
|
(267
|
)
|
|
(191
|
)
|
|
—
|
|
|
—
|
|
|
(998
|
)
|
||
|
Proceeds from issuance of long-term debt
|
|
75,000
|
|
|
15,000
|
|
|
10,000
|
|
|
—
|
|
|
—
|
|
|
100,000
|
|
||
|
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
|
|
75,881
|
|
|
—
|
|
|
5,600
|
|
|
—
|
|
|
5,400
|
|
|
86,881
|
|
||
|
Other
|
|
(291
|
)
|
|
(52
|
)
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
(378
|
)
|
||
|
Net cash provided by financing activities
|
|
98,398
|
|
|
7,037
|
|
|
9,364
|
|
|
—
|
|
|
19,054
|
|
|
133,853
|
|
||
|
Net increase (decrease) in cash and cash equivalents
|
|
11,863
|
|
|
491
|
|
|
(4,011
|
)
|
|
—
|
|
|
—
|
|
|
8,343
|
|
||
|
Cash and cash equivalents, beginning of period
|
|
2,059
|
|
|
4,025
|
|
|
6,332
|
|
|
101
|
|
|
—
|
|
|
12,517
|
|
||
|
Cash and cash equivalents, end of period
|
|
$
|
13,922
|
|
|
4,516
|
|
|
2,321
|
|
|
101
|
|
|
—
|
|
|
$
|
20,860
|
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
(in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Interest and dividend income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest and fees on loans
|
|
$
|
58,620
|
|
|
$
|
54,633
|
|
|
$
|
116,480
|
|
|
$
|
107,433
|
|
|
Interest and dividends on investment securities
|
|
7,535
|
|
|
8,628
|
|
|
18,163
|
|
|
17,830
|
|
||||
|
Total interest and dividend income
|
|
66,155
|
|
|
63,261
|
|
|
134,643
|
|
|
125,263
|
|
||||
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest on deposit liabilities
|
|
4,287
|
|
|
3,284
|
|
|
8,539
|
|
|
6,241
|
|
||||
|
Interest on other borrowings
|
|
411
|
|
|
393
|
|
|
939
|
|
|
889
|
|
||||
|
Total interest expense
|
|
4,698
|
|
|
3,677
|
|
|
9,478
|
|
|
7,130
|
|
||||
|
Net interest income
|
|
61,457
|
|
|
59,584
|
|
|
125,165
|
|
|
118,133
|
|
||||
|
Provision for loan losses
|
|
7,688
|
|
|
2,763
|
|
|
14,558
|
|
|
6,304
|
|
||||
|
Net interest income after provision for loan losses
|
|
53,769
|
|
|
56,821
|
|
|
110,607
|
|
|
111,829
|
|
||||
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Fees from other financial services
|
|
4,798
|
|
|
4,744
|
|
|
9,360
|
|
|
9,398
|
|
||||
|
Fee income on deposit liabilities
|
|
5,004
|
|
|
5,138
|
|
|
10,082
|
|
|
10,327
|
|
||||
|
Fee income on other financial products
|
|
1,830
|
|
|
1,675
|
|
|
3,423
|
|
|
3,329
|
|
||||
|
Bank-owned life insurance
|
|
2,390
|
|
|
1,133
|
|
|
4,649
|
|
|
2,004
|
|
||||
|
Mortgage banking income
|
|
976
|
|
|
617
|
|
|
1,590
|
|
|
1,230
|
|
||||
|
Other income, net
|
|
534
|
|
|
536
|
|
|
992
|
|
|
972
|
|
||||
|
Total noninterest income
|
|
15,532
|
|
|
13,843
|
|
|
30,096
|
|
|
27,260
|
|
||||
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Compensation and employee benefits
|
|
25,750
|
|
|
23,655
|
|
|
51,262
|
|
|
48,095
|
|
||||
|
Occupancy
|
|
5,479
|
|
|
4,194
|
|
|
10,149
|
|
|
8,474
|
|
||||
|
Data processing
|
|
3,852
|
|
|
3,540
|
|
|
7,590
|
|
|
7,004
|
|
||||
|
Services
|
|
2,606
|
|
|
3,028
|
|
|
5,032
|
|
|
6,075
|
|
||||
|
Equipment
|
|
2,189
|
|
|
1,874
|
|
|
4,253
|
|
|
3,602
|
|
||||
|
Office supplies, printing and postage
|
|
1,663
|
|
|
1,491
|
|
|
3,023
|
|
|
2,998
|
|
||||
|
Marketing
|
|
1,323
|
|
|
1,085
|
|
|
2,313
|
|
|
1,730
|
|
||||
|
FDIC insurance
|
|
628
|
|
|
727
|
|
|
1,254
|
|
|
1,440
|
|
||||
|
Other expense
|
|
4,519
|
|
|
4,556
|
|
|
8,373
|
|
|
8,657
|
|
||||
|
Total noninterest expense
|
|
48,009
|
|
|
44,150
|
|
|
93,249
|
|
|
88,075
|
|
||||
|
Income before income taxes
|
|
21,292
|
|
|
26,514
|
|
|
47,454
|
|
|
51,014
|
|
||||
|
Income taxes
|
|
4,276
|
|
|
5,953
|
|
|
9,599
|
|
|
11,493
|
|
||||
|
Net income
|
|
$
|
17,016
|
|
|
$
|
20,561
|
|
|
$
|
37,855
|
|
|
$
|
39,521
|
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
(in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Interest and dividend income
|
|
66,155
|
|
|
63,261
|
|
|
$
|
134,643
|
|
|
$
|
125,263
|
|
||
|
Noninterest income
|
|
15,532
|
|
|
13,843
|
|
|
30,096
|
|
|
27,260
|
|
||||
|
*Revenues-Bank
|
|
81,687
|
|
|
77,104
|
|
|
164,739
|
|
|
152,523
|
|
||||
|
Total interest expense
|
|
4,698
|
|
|
3,677
|
|
|
9,478
|
|
|
7,130
|
|
||||
|
Provision for loan losses
|
|
7,688
|
|
|
2,763
|
|
|
14,558
|
|
|
6,304
|
|
||||
|
Noninterest expense
|
|
48,009
|
|
|
44,150
|
|
|
93,249
|
|
|
88,075
|
|
||||
|
Less: Retirement defined benefits gain (expense)—other than service costs
|
|
40
|
|
|
(403
|
)
|
|
80
|
|
|
(790
|
)
|
||||
|
*Expenses-Bank
|
|
60,435
|
|
|
50,187
|
|
|
117,365
|
|
|
100,719
|
|
||||
|
*Operating income-Bank
|
|
21,252
|
|
|
26,917
|
|
|
47,374
|
|
|
51,804
|
|
||||
|
Add back: Retirement defined benefits (gain) expense—other than service costs
|
|
(40
|
)
|
|
403
|
|
|
(80
|
)
|
|
790
|
|
||||
|
Income before income taxes
|
|
$
|
21,292
|
|
|
$
|
26,514
|
|
|
$
|
47,454
|
|
|
$
|
51,014
|
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
(in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Net income
|
|
$
|
17,016
|
|
|
$
|
20,561
|
|
|
$
|
37,855
|
|
|
$
|
39,521
|
|
|
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 $(5,182), $1,592, $(8,637) and $6,459, respectively
|
|
14,154
|
|
|
(4,348
|
)
|
|
23,593
|
|
|
(17,645
|
)
|
||||
|
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 $44, $133, $(1,122), and $827, respectively
|
|
121
|
|
|
366
|
|
|
(3,066
|
)
|
|
1,588
|
|
||||
|
Other comprehensive income (loss), net of taxes
|
|
14,275
|
|
|
(3,982
|
)
|
|
20,527
|
|
|
(16,057
|
)
|
||||
|
Comprehensive income
|
|
$
|
31,291
|
|
|
$
|
16,579
|
|
|
$
|
58,382
|
|
|
$
|
23,464
|
|
|
(in thousands)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash and due from banks
|
|
|
|
|
$
|
115,214
|
|
|
|
|
|
$
|
122,059
|
|
||
|
Interest-bearing deposits
|
|
|
|
52,415
|
|
|
|
|
4,225
|
|
||||||
|
Investment securities
|
|
|
|
|
|
|
|
|
||||||||
|
Available-for-sale, at fair value
|
|
|
|
|
1,298,010
|
|
|
|
|
|
1,388,533
|
|
||||
|
Held-to-maturity, at amortized cost (fair value of $141,231 and $142,057, respectively)
|
|
|
|
137,029
|
|
|
|
|
141,875
|
|
||||||
|
Stock in Federal Home Loan Bank, at cost
|
|
|
|
|
8,434
|
|
|
|
|
|
9,958
|
|
||||
|
Loans held for investment
|
|
|
|
|
5,008,489
|
|
|
|
|
|
4,843,021
|
|
||||
|
Allowance for loan losses
|
|
|
|
|
(58,425
|
)
|
|
|
|
|
(52,119
|
)
|
||||
|
Net loans
|
|
|
|
|
4,950,064
|
|
|
|
|
|
4,790,902
|
|
||||
|
Loans held for sale, at lower of cost or fair value
|
|
|
|
|
9,196
|
|
|
|
|
|
1,805
|
|
||||
|
Other
|
|
|
|
|
511,502
|
|
|
|
|
|
486,347
|
|
||||
|
Goodwill
|
|
|
|
|
82,190
|
|
|
|
|
|
82,190
|
|
||||
|
Total assets
|
|
|
|
|
$
|
7,164,054
|
|
|
|
|
|
$
|
7,027,894
|
|
||
|
Liabilities and shareholder’s equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Deposit liabilities—noninterest-bearing
|
|
|
|
|
$
|
1,883,044
|
|
|
|
|
|
$
|
1,800,727
|
|
||
|
Deposit liabilities—interest-bearing
|
|
|
|
|
4,374,339
|
|
|
|
|
|
4,358,125
|
|
||||
|
Other borrowings
|
|
|
|
|
111,485
|
|
|
|
|
|
110,040
|
|
||||
|
Other
|
|
|
|
|
134,162
|
|
|
|
|
|
124,613
|
|
||||
|
Total liabilities
|
|
|
|
|
6,503,030
|
|
|
|
|
|
6,393,505
|
|
||||
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Common stock
|
|
|
|
|
1
|
|
|
|
|
|
1
|
|
||||
|
Additional paid-in capital
|
|
|
|
348,423
|
|
|
|
|
347,170
|
|
||||||
|
Retained earnings
|
|
|
|
|
330,141
|
|
|
|
|
|
325,286
|
|
||||
|
Accumulated other comprehensive loss, net of tax benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net unrealized losses on securities
|
|
$
|
(830
|
)
|
|
|
|
|
$
|
(24,423
|
)
|
|
|
|
||
|
Retirement benefit plans
|
|
(16,711
|
)
|
|
(17,541
|
)
|
|
(13,645
|
)
|
|
(38,068
|
)
|
||||
|
Total shareholder’s equity
|
|
|
|
|
661,024
|
|
|
|
|
|
634,389
|
|
||||
|
Total liabilities and shareholder’s equity
|
|
|
|
|
$
|
7,164,054
|
|
|
|
|
|
$
|
7,027,894
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Bank-owned life insurance
|
|
|
|
|
$
|
151,607
|
|
|
|
|
|
$
|
151,172
|
|
||
|
Premises and equipment, net
|
|
|
|
|
208,956
|
|
|
|
|
|
214,415
|
|
||||
|
Accrued interest receivable
|
|
|
|
|
20,675
|
|
|
|
|
|
20,140
|
|
||||
|
Mortgage-servicing rights
|
|
|
|
|
8,103
|
|
|
|
|
|
8,062
|
|
||||
|
Low-income housing equity investments
|
|
|
|
71,484
|
|
|
|
|
67,626
|
|
||||||
|
Real estate acquired in settlement of loans, net
|
|
|
|
|
—
|
|
|
|
|
|
406
|
|
||||
|
Real estate held for sale
|
|
|
|
9,014
|
|
|
|
|
—
|
|
||||||
|
Other
|
|
|
|
|
41,663
|
|
|
|
|
|
24,526
|
|
||||
|
|
|
|
|
|
$
|
511,502
|
|
|
|
|
|
$
|
486,347
|
|
||
|
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Accrued expenses
|
|
|
|
|
$
|
42,129
|
|
|
|
|
|
$
|
54,084
|
|
||
|
Federal and state income taxes payable
|
|
|
|
|
7,176
|
|
|
|
|
|
2,012
|
|
||||
|
Cashier’s checks
|
|
|
|
|
25,135
|
|
|
|
|
|
26,906
|
|
||||
|
Advance payments by borrowers
|
|
|
|
|
11,080
|
|
|
|
|
|
10,183
|
|
||||
|
Other
|
|
|
|
|
48,642
|
|
|
|
|
|
31,428
|
|
||||
|
|
|
|
|
|
$
|
134,162
|
|
|
|
|
|
$
|
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
|
||||||||||||||||||||||
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
U.S. Treasury and federal agency obligations
|
|
$
|
130,810
|
|
|
$
|
736
|
|
|
$
|
(340
|
)
|
|
$
|
131,206
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
8
|
|
|
$
|
55,125
|
|
|
$
|
(340
|
)
|
|
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
|
1,090,729
|
|
|
4,083
|
|
|
(7,325
|
)
|
|
1,087,487
|
|
|
1
|
|
|
1,071
|
|
|
(3
|
)
|
|
113
|
|
|
628,194
|
|
|
(7,322
|
)
|
||||||||
|
Corporate bonds
|
|
49,438
|
|
|
1,713
|
|
|
—
|
|
|
51,151
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
Mortgage revenue bonds
|
|
28,166
|
|
|
—
|
|
|
—
|
|
|
28,166
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
|
|
$
|
1,299,143
|
|
|
$
|
6,532
|
|
|
$
|
(7,665
|
)
|
|
$
|
1,298,010
|
|
|
1
|
|
|
$
|
1,071
|
|
|
$
|
(3
|
)
|
|
121
|
|
|
$
|
683,319
|
|
|
$
|
(7,662
|
)
|
|
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
|
$
|
137,029
|
|
|
$
|
4,202
|
|
|
$
|
—
|
|
|
$
|
141,231
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
$
|
137,029
|
|
|
$
|
4,202
|
|
|
$
|
—
|
|
|
$
|
141,231
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
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
|
)
|
|
June 30, 2019
|
|
Amortized cost
|
|
Fair value
|
||||
|
(in thousands)
|
|
|
|
|
||||
|
Available-for-sale
|
|
|
|
|
||||
|
Due in one year or less
|
|
$
|
12,062
|
|
|
$
|
12,076
|
|
|
Due after one year through five years
|
|
126,045
|
|
|
127,461
|
|
||
|
Due after five years through ten years
|
|
54,880
|
|
|
55,559
|
|
||
|
Due after ten years
|
|
15,427
|
|
|
15,427
|
|
||
|
|
|
208,414
|
|
|
210,523
|
|
||
|
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
|
1,090,729
|
|
|
1,087,487
|
|
||
|
Total available-for-sale securities
|
|
$
|
1,299,143
|
|
|
$
|
1,298,010
|
|
|
Held-to-maturity
|
|
|
|
|
||||
|
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
|
$
|
137,029
|
|
|
$
|
141,231
|
|
|
Total held-to-maturity securities
|
|
$
|
137,029
|
|
|
$
|
141,231
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
(in thousands)
|
|
|
|
|
|
||
|
Real estate:
|
|
|
|
|
|
||
|
Residential 1-4 family
|
$
|
2,189,976
|
|
|
$
|
2,143,397
|
|
|
Commercial real estate
|
790,174
|
|
|
748,398
|
|
||
|
Home equity line of credit
|
1,036,985
|
|
|
978,237
|
|
||
|
Residential land
|
14,696
|
|
|
13,138
|
|
||
|
Commercial construction
|
68,676
|
|
|
92,264
|
|
||
|
Residential construction
|
8,165
|
|
|
14,307
|
|
||
|
Total real estate
|
4,108,672
|
|
|
3,989,741
|
|
||
|
Commercial
|
626,524
|
|
|
587,891
|
|
||
|
Consumer
|
272,949
|
|
|
266,002
|
|
||
|
Total loans
|
5,008,145
|
|
|
4,843,634
|
|
||
|
Less: Deferred fees and discounts
|
344
|
|
|
(613
|
)
|
||
|
Allowance for loan losses
|
(58,425
|
)
|
|
(52,119
|
)
|
||
|
Total loans, net
|
$
|
4,950,064
|
|
|
$
|
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 June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Beginning balance
|
|
$
|
1,911
|
|
|
$
|
14,825
|
|
|
$
|
6,493
|
|
|
$
|
425
|
|
|
$
|
2,843
|
|
|
$
|
3
|
|
|
$
|
10,814
|
|
|
$
|
16,983
|
|
|
$
|
54,297
|
|
|
Charge-offs
|
|
(5
|
)
|
|
—
|
|
|
(19
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(494
|
)
|
|
(5,102
|
)
|
|
(5,624
|
)
|
|||||||||
|
Recoveries
|
|
8
|
|
|
—
|
|
|
4
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
1,281
|
|
|
764
|
|
|
2,064
|
|
|||||||||
|
Provision
|
|
101
|
|
|
986
|
|
|
403
|
|
|
109
|
|
|
(797
|
)
|
|
(1
|
)
|
|
1,472
|
|
|
5,415
|
|
|
7,688
|
|
|||||||||
|
Ending balance
|
|
$
|
2,015
|
|
|
$
|
15,811
|
|
|
$
|
6,881
|
|
|
$
|
537
|
|
|
$
|
2,046
|
|
|
$
|
2
|
|
|
$
|
13,073
|
|
|
$
|
18,060
|
|
|
$
|
58,425
|
|
|
Three months ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Beginning balance
|
|
$
|
2,525
|
|
|
$
|
15,959
|
|
|
$
|
7,982
|
|
|
$
|
674
|
|
|
$
|
4,361
|
|
|
$
|
4
|
|
|
$
|
10,355
|
|
|
$
|
12,035
|
|
|
$
|
53,895
|
|
|
Charge-offs
|
|
—
|
|
|
—
|
|
|
(144
|
)
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(540
|
)
|
|
(3,888
|
)
|
|
(4,581
|
)
|
|||||||||
|
Recoveries
|
|
14
|
|
|
—
|
|
|
13
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
280
|
|
|
373
|
|
|
726
|
|
|||||||||
|
Provision
|
|
400
|
|
|
(661
|
)
|
|
(517
|
)
|
|
(69
|
)
|
|
255
|
|
|
—
|
|
|
66
|
|
|
3,289
|
|
|
2,763
|
|
|||||||||
|
Ending balance
|
|
$
|
2,939
|
|
|
$
|
15,298
|
|
|
$
|
7,334
|
|
|
$
|
642
|
|
|
$
|
4,616
|
|
|
$
|
4
|
|
|
$
|
10,161
|
|
|
$
|
11,809
|
|
|
$
|
52,803
|
|
|
Six months ended June 30, 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
|
|
(19
|
)
|
|
—
|
|
|
(19
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(1,112
|
)
|
|
(10,661
|
)
|
|
(11,815
|
)
|
|||||||||
|
Recoveries
|
|
617
|
|
|
—
|
|
|
9
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
1,461
|
|
|
1,462
|
|
|
3,563
|
|
|||||||||
|
Provision
|
|
(559
|
)
|
|
1,306
|
|
|
520
|
|
|
48
|
|
|
(744
|
)
|
|
(2
|
)
|
|
3,499
|
|
|
10,490
|
|
|
14,558
|
|
|||||||||
|
Ending balance
|
|
$
|
2,015
|
|
|
$
|
15,811
|
|
|
$
|
6,881
|
|
|
$
|
537
|
|
|
$
|
2,046
|
|
|
$
|
2
|
|
|
$
|
13,073
|
|
|
$
|
18,060
|
|
|
$
|
58,425
|
|
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Ending balance: individually evaluated for impairment
|
|
$
|
904
|
|
|
$
|
7
|
|
|
$
|
465
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,983
|
|
|
$
|
501
|
|
|
$
|
6,860
|
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
1,111
|
|
|
$
|
15,804
|
|
|
$
|
6,416
|
|
|
$
|
537
|
|
|
$
|
2,046
|
|
|
$
|
2
|
|
|
$
|
8,090
|
|
|
$
|
17,559
|
|
|
$
|
51,565
|
|
|
Financing Receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Ending balance
|
|
$
|
2,189,976
|
|
|
$
|
790,174
|
|
|
$
|
1,036,985
|
|
|
$
|
14,696
|
|
|
$
|
68,676
|
|
|
$
|
8,165
|
|
|
$
|
626,524
|
|
|
$
|
272,949
|
|
|
$
|
5,008,145
|
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
17,537
|
|
|
$
|
890
|
|
|
$
|
13,376
|
|
|
$
|
2,869
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,033
|
|
|
$
|
586
|
|
|
$
|
51,291
|
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
2,172,439
|
|
|
$
|
789,284
|
|
|
$
|
1,023,609
|
|
|
$
|
11,827
|
|
|
$
|
68,676
|
|
|
$
|
8,165
|
|
|
$
|
610,491
|
|
|
$
|
272,363
|
|
|
$
|
4,956,854
|
|
|
Six months ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Beginning balance
|
|
$
|
2,902
|
|
|
$
|
15,796
|
|
|
$
|
7,522
|
|
|
$
|
896
|
|
|
$
|
4,671
|
|
|
$
|
12
|
|
|
$
|
10,851
|
|
|
$
|
10,987
|
|
|
$
|
53,637
|
|
|
Charge-offs
|
|
(31
|
)
|
|
—
|
|
|
(144
|
)
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
(1,142
|
)
|
|
(8,120
|
)
|
|
(9,454
|
)
|
|||||||||
|
Recoveries
|
|
68
|
|
|
—
|
|
|
27
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
1,450
|
|
|
720
|
|
|
2,316
|
|
|||||||||
|
Provision
|
|
—
|
|
|
(498
|
)
|
|
(71
|
)
|
|
(288
|
)
|
|
(55
|
)
|
|
(8
|
)
|
|
(998
|
)
|
|
8,222
|
|
|
6,304
|
|
|||||||||
|
Ending balance
|
|
$
|
2,939
|
|
|
$
|
15,298
|
|
|
$
|
7,334
|
|
|
$
|
642
|
|
|
$
|
4,616
|
|
|
$
|
4
|
|
|
$
|
10,161
|
|
|
$
|
11,809
|
|
|
$
|
52,803
|
|
|
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
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
|
(in thousands)
|
|
Commercial
real estate
|
|
Commercial
construction
|
|
Commercial
|
|
Total
|
|
Commercial
real estate
|
|
Commercial
construction
|
|
Commercial
|
|
Total
|
||||||||||||||||
|
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Pass
|
|
$
|
703,028
|
|
|
$
|
66,387
|
|
|
$
|
570,099
|
|
|
$
|
1,339,514
|
|
|
$
|
658,288
|
|
|
$
|
89,974
|
|
|
$
|
547,640
|
|
|
$
|
1,295,902
|
|
|
Special mention
|
|
11,012
|
|
|
—
|
|
|
28,263
|
|
|
39,275
|
|
|
32,871
|
|
|
—
|
|
|
11,598
|
|
|
44,469
|
|
||||||||
|
Substandard
|
|
76,134
|
|
|
2,289
|
|
|
19,336
|
|
|
97,759
|
|
|
57,239
|
|
|
2,290
|
|
|
28,653
|
|
|
88,182
|
|
||||||||
|
Doubtful
|
|
—
|
|
|
—
|
|
|
8,826
|
|
|
8,826
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
Total
|
|
$
|
790,174
|
|
|
$
|
68,676
|
|
|
$
|
626,524
|
|
|
$
|
1,485,374
|
|
|
$
|
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
|
||||||||||||||
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Residential 1-4 family
|
|
$
|
4,125
|
|
|
$
|
661
|
|
|
$
|
3,763
|
|
|
$
|
8,549
|
|
|
$
|
2,181,427
|
|
|
$
|
2,189,976
|
|
|
$
|
—
|
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
790,174
|
|
|
790,174
|
|
|
—
|
|
|||||||
|
Home equity line of credit
|
|
1,444
|
|
|
813
|
|
|
1,798
|
|
|
4,055
|
|
|
1,032,930
|
|
|
1,036,985
|
|
|
—
|
|
|||||||
|
Residential land
|
|
—
|
|
|
—
|
|
|
376
|
|
|
376
|
|
|
14,320
|
|
|
14,696
|
|
|
—
|
|
|||||||
|
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68,676
|
|
|
68,676
|
|
|
—
|
|
|||||||
|
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,165
|
|
|
8,165
|
|
|
—
|
|
|||||||
|
Commercial
|
|
410
|
|
|
305
|
|
|
2,264
|
|
|
2,979
|
|
|
623,545
|
|
|
626,524
|
|
|
—
|
|
|||||||
|
Consumer
|
|
4,583
|
|
|
2,536
|
|
|
2,276
|
|
|
9,395
|
|
|
263,554
|
|
|
272,949
|
|
|
—
|
|
|||||||
|
Total loans
|
|
$
|
10,562
|
|
|
$
|
4,315
|
|
|
$
|
10,477
|
|
|
$
|
25,354
|
|
|
$
|
4,982,791
|
|
|
$
|
5,008,145
|
|
|
$
|
—
|
|
|
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)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
Real estate:
|
|
|
|
|
|
|
||
|
Residential 1-4 family
|
|
$
|
13,087
|
|
|
$
|
12,037
|
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
||
|
Home equity line of credit
|
|
7,506
|
|
|
6,348
|
|
||
|
Residential land
|
|
818
|
|
|
436
|
|
||
|
Commercial construction
|
|
—
|
|
|
—
|
|
||
|
Residential construction
|
|
—
|
|
|
—
|
|
||
|
Commercial
|
|
13,595
|
|
|
4,278
|
|
||
|
Consumer
|
|
4,362
|
|
|
4,196
|
|
||
|
Total nonaccrual loans
|
|
$
|
39,368
|
|
|
$
|
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
|
|
$
|
10,269
|
|
|
$
|
10,194
|
|
|
Commercial real estate
|
|
890
|
|
|
915
|
|
||
|
Home equity line of credit
|
|
11,116
|
|
|
11,597
|
|
||
|
Residential land
|
|
2,402
|
|
|
1,622
|
|
||
|
Commercial construction
|
|
—
|
|
|
—
|
|
||
|
Residential construction
|
|
—
|
|
|
—
|
|
||
|
Commercial
|
|
2,611
|
|
|
1,527
|
|
||
|
Consumer
|
|
59
|
|
|
62
|
|
||
|
Total troubled debt restructured loans not included above
|
|
$
|
27,347
|
|
|
$
|
25,917
|
|
|
|
|
June 30, 2019
|
|
Three months ended June 30, 2019
|
|
Six months ended June 30, 2019
|
||||||||||||||||||||||
|
(in thousands)
|
|
Recorded
investment
|
|
Unpaid
principal
balance
|
|
Related
Allowance
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
||||||||||||||
|
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Residential 1-4 family
|
|
$
|
9,208
|
|
|
$
|
9,833
|
|
|
$
|
—
|
|
|
$
|
8,993
|
|
|
$
|
87
|
|
|
$
|
8,492
|
|
|
$
|
247
|
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Home equity line of credit
|
|
1,787
|
|
|
2,073
|
|
|
—
|
|
|
1,940
|
|
|
54
|
|
|
2,238
|
|
|
66
|
|
|||||||
|
Residential land
|
|
2,869
|
|
|
3,072
|
|
|
—
|
|
|
2,280
|
|
|
24
|
|
|
2,158
|
|
|
50
|
|
|||||||
|
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Commercial
|
|
4,553
|
|
|
5,774
|
|
|
—
|
|
|
4,626
|
|
|
—
|
|
|
4,299
|
|
|
—
|
|
|||||||
|
Consumer
|
|
30
|
|
|
30
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|||||||
|
|
|
$
|
18,447
|
|
|
$
|
20,782
|
|
|
$
|
—
|
|
|
$
|
17,870
|
|
|
$
|
165
|
|
|
$
|
17,218
|
|
|
$
|
363
|
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Residential 1-4 family
|
|
$
|
8,329
|
|
|
$
|
8,382
|
|
|
$
|
904
|
|
|
$
|
8,440
|
|
|
$
|
96
|
|
|
$
|
8,417
|
|
|
$
|
179
|
|
|
Commercial real estate
|
|
890
|
|
|
890
|
|
|
7
|
|
|
894
|
|
|
9
|
|
|
900
|
|
|
19
|
|
|||||||
|
Home equity line of credit
|
|
11,589
|
|
|
11,623
|
|
|
465
|
|
|
11,665
|
|
|
152
|
|
|
11,743
|
|
|
282
|
|
|||||||
|
Residential land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|||||||
|
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Commercial
|
|
11,480
|
|
|
11,584
|
|
|
4,983
|
|
|
10,997
|
|
|
30
|
|
|
7,874
|
|
|
56
|
|
|||||||
|
Consumer
|
|
556
|
|
|
556
|
|
|
501
|
|
|
288
|
|
|
1
|
|
|
173
|
|
|
2
|
|
|||||||
|
|
|
$
|
32,844
|
|
|
$
|
33,035
|
|
|
$
|
6,860
|
|
|
$
|
32,363
|
|
|
$
|
288
|
|
|
$
|
29,161
|
|
|
$
|
538
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Residential 1-4 family
|
|
$
|
17,537
|
|
|
$
|
18,215
|
|
|
$
|
904
|
|
|
$
|
17,433
|
|
|
$
|
183
|
|
|
$
|
16,909
|
|
|
$
|
426
|
|
|
Commercial real estate
|
|
890
|
|
|
890
|
|
|
7
|
|
|
894
|
|
|
9
|
|
|
900
|
|
|
19
|
|
|||||||
|
Home equity line of credit
|
|
13,376
|
|
|
13,696
|
|
|
465
|
|
|
13,605
|
|
|
206
|
|
|
13,981
|
|
|
348
|
|
|||||||
|
Residential land
|
|
2,869
|
|
|
3,072
|
|
|
—
|
|
|
2,359
|
|
|
24
|
|
|
2,212
|
|
|
50
|
|
|||||||
|
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Commercial
|
|
16,033
|
|
|
17,358
|
|
|
4,983
|
|
|
15,623
|
|
|
30
|
|
|
12,173
|
|
|
56
|
|
|||||||
|
Consumer
|
|
586
|
|
|
586
|
|
|
501
|
|
|
319
|
|
|
1
|
|
|
204
|
|
|
2
|
|
|||||||
|
|
|
$
|
51,291
|
|
|
$
|
53,817
|
|
|
$
|
6,860
|
|
|
$
|
50,233
|
|
|
$
|
453
|
|
|
$
|
46,379
|
|
|
$
|
901
|
|
|
|
|
December 31, 2018
|
|
Three months ended June 30, 2018
|
|
Six months ended June 30, 2018
|
||||||||||||||||||||||
|
(in thousands)
|
|
Recorded
investment
|
|
Unpaid
principal
balance
|
|
Related
allowance
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
|
Average
recorded
investment
|
|
Interest
income
recognized*
|
||||||||||||||
|
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Residential 1-4 family
|
|
$
|
7,822
|
|
|
$
|
8,333
|
|
|
$
|
—
|
|
|
$
|
8,900
|
|
|
$
|
50
|
|
|
$
|
8,699
|
|
|
$
|
157
|
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Home equity line of credit
|
|
2,743
|
|
|
3,004
|
|
|
—
|
|
|
2,374
|
|
|
7
|
|
|
2,037
|
|
|
12
|
|
|||||||
|
Residential land
|
|
2,030
|
|
|
2,228
|
|
|
—
|
|
|
1,132
|
|
|
5
|
|
|
1,150
|
|
|
10
|
|
|||||||
|
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Commercial
|
|
3,722
|
|
|
4,775
|
|
|
—
|
|
|
3,026
|
|
|
10
|
|
|
2,691
|
|
|
20
|
|
|||||||
|
Consumer
|
|
32
|
|
|
32
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|||||||
|
|
|
$
|
16,349
|
|
|
$
|
18,372
|
|
|
$
|
—
|
|
|
$
|
15,447
|
|
|
$
|
72
|
|
|
$
|
14,588
|
|
|
$
|
199
|
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Residential 1-4 family
|
|
$
|
8,672
|
|
|
$
|
8,875
|
|
|
$
|
876
|
|
|
$
|
8,778
|
|
|
$
|
97
|
|
|
$
|
8,953
|
|
|
$
|
190
|
|
|
Commercial real estate
|
|
915
|
|
|
915
|
|
|
7
|
|
|
997
|
|
|
10
|
|
|
1,003
|
|
|
21
|
|
|||||||
|
Home equity line of credit
|
|
12,057
|
|
|
12,086
|
|
|
701
|
|
|
10,420
|
|
|
96
|
|
|
9,080
|
|
|
177
|
|
|||||||
|
Residential land
|
|
29
|
|
|
29
|
|
|
6
|
|
|
40
|
|
|
1
|
|
|
58
|
|
|
3
|
|
|||||||
|
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Commercial
|
|
1,618
|
|
|
1,618
|
|
|
628
|
|
|
1,738
|
|
|
30
|
|
|
1,848
|
|
|
66
|
|
|||||||
|
Consumer
|
|
57
|
|
|
57
|
|
|
4
|
|
|
58
|
|
|
1
|
|
|
58
|
|
|
2
|
|
|||||||
|
|
|
$
|
23,348
|
|
|
$
|
23,580
|
|
|
$
|
2,222
|
|
|
$
|
22,031
|
|
|
$
|
235
|
|
|
$
|
21,000
|
|
|
$
|
459
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Residential 1-4 family
|
|
$
|
16,494
|
|
|
$
|
17,208
|
|
|
$
|
876
|
|
|
$
|
17,678
|
|
|
$
|
147
|
|
|
$
|
17,652
|
|
|
$
|
347
|
|
|
Commercial real estate
|
|
915
|
|
|
915
|
|
|
7
|
|
|
997
|
|
|
10
|
|
|
1,003
|
|
|
21
|
|
|||||||
|
Home equity line of credit
|
|
14,800
|
|
|
15,090
|
|
|
701
|
|
|
12,794
|
|
|
103
|
|
|
11,117
|
|
|
189
|
|
|||||||
|
Residential land
|
|
2,059
|
|
|
2,257
|
|
|
6
|
|
|
1,172
|
|
|
6
|
|
|
1,208
|
|
|
13
|
|
|||||||
|
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Commercial
|
|
5,340
|
|
|
6,393
|
|
|
628
|
|
|
4,764
|
|
|
40
|
|
|
4,539
|
|
|
86
|
|
|||||||
|
Consumer
|
|
89
|
|
|
89
|
|
|
4
|
|
|
73
|
|
|
1
|
|
|
69
|
|
|
2
|
|
|||||||
|
|
|
$
|
39,697
|
|
|
$
|
41,952
|
|
|
$
|
2,222
|
|
|
$
|
37,478
|
|
|
$
|
307
|
|
|
$
|
35,588
|
|
|
$
|
658
|
|
|
*
|
Since loan was classified as impaired.
|
|
Loans modified as a TDR
|
|
Three months ended June 30, 2019
|
|
Six months ended June 30, 2019
|
||||||||||||||||||
|
(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
|
|
1
|
|
|
$
|
469
|
|
|
$
|
154
|
|
|
9
|
|
|
$
|
1,501
|
|
|
$
|
161
|
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Home equity line of credit
|
|
2
|
|
|
311
|
|
|
59
|
|
|
3
|
|
|
432
|
|
|
83
|
|
||||
|
Residential land
|
|
2
|
|
|
825
|
|
|
—
|
|
|
2
|
|
|
825
|
|
|
—
|
|
||||
|
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Commercial
|
|
2
|
|
|
1,317
|
|
|
133
|
|
|
3
|
|
|
1,507
|
|
|
150
|
|
||||
|
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
7
|
|
|
$
|
2,922
|
|
|
$
|
346
|
|
|
17
|
|
|
$
|
4,265
|
|
|
$
|
394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loans modified as a TDR
|
|
Three months ended June 30, 2018
|
|
Six months ended June 30, 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
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Home equity line of credit
|
|
20
|
|
|
3,260
|
|
|
578
|
|
|
37
|
|
|
5,293
|
|
|
953
|
|
||||
|
Residential land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Commercial
|
|
2
|
|
|
43
|
|
|
43
|
|
|
7
|
|
|
2,200
|
|
|
43
|
|
||||
|
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
22
|
|
|
$
|
3,303
|
|
|
$
|
621
|
|
|
44
|
|
|
$
|
7,493
|
|
|
$
|
996
|
|
|
|
|
Three months ended June 30, 2018
|
|
Six months ended June 30, 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
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
|
Home equity line of credit
|
|
1
|
|
|
100
|
|
|
2
|
|
|
181
|
|
||
|
Residential land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
|
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
|
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
|
Commercial
|
|
1
|
|
|
291
|
|
|
1
|
|
|
291
|
|
||
|
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
|
|
|
2
|
|
|
$
|
391
|
|
|
3
|
|
|
$
|
472
|
|
|
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 |
||||||||
|
June 30, 2019
|
|
$
|
19,418
|
|
|
$
|
(11,315
|
)
|
|
$
|
—
|
|
|
$
|
8,103
|
|
|
December 31, 2018
|
|
18,556
|
|
|
(10,494
|
)
|
|
—
|
|
|
8,062
|
|
||||
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
(in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Mortgage servicing rights
|
|
|
|
|
|
|
|
|
||||||||
|
Beginning balance
|
|
$
|
7,897
|
|
|
$
|
8,541
|
|
|
$
|
8,062
|
|
|
$
|
8,639
|
|
|
Amount capitalized
|
|
632
|
|
|
392
|
|
|
862
|
|
|
727
|
|
||||
|
Amortization
|
|
(426
|
)
|
|
(424
|
)
|
|
(821
|
)
|
|
(857
|
)
|
||||
|
Other-than-temporary impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Carrying amount before valuation allowance
|
|
8,103
|
|
|
8,509
|
|
|
8,103
|
|
|
8,509
|
|
||||
|
Valuation allowance for mortgage servicing rights
|
|
|
|
|
|
|
|
|
||||||||
|
Beginning balance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Provision (recovery)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Other-than-temporary impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Ending balance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Net carrying value of mortgage servicing rights
|
|
$
|
8,103
|
|
|
$
|
8,509
|
|
|
$
|
8,103
|
|
|
$
|
8,509
|
|
|
(dollars in thousands)
|
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
|
Unpaid principal balance
|
|
$
|
1,200,017
|
|
|
$
|
1,188,514
|
|
|
Weighted average note rate
|
|
4.01
|
%
|
|
3.98
|
%
|
||
|
Weighted average discount rate
|
|
9.3
|
%
|
|
10.0
|
%
|
||
|
Weighted average prepayment speed
|
|
10.3
|
%
|
|
6.5
|
%
|
||
|
(dollars in thousands)
|
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
|
Prepayment rate:
|
|
|
|
|
||||
|
25 basis points adverse rate change
|
|
$
|
(843
|
)
|
|
$
|
(250
|
)
|
|
50 basis points adverse rate change
|
|
(1,786
|
)
|
|
(566
|
)
|
||
|
Discount rate:
|
|
|
|
|
||||
|
25 basis points adverse rate change
|
|
(108
|
)
|
|
(139
|
)
|
||
|
50 basis points adverse rate change
|
|
(215
|
)
|
|
(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
|
|
|
|
|
|
|
|
|
|
|||
|
June 30, 2019
|
|
$
|
111
|
|
|
$
|
—
|
|
|
$
|
111
|
|
|
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
|
|
|
|
|
|
|
||||||
|
June 30, 2019
|
|
$
|
111
|
|
|
$
|
128
|
|
|
$
|
—
|
|
|
December 31, 2018
|
|
65
|
|
|
92
|
|
|
—
|
|
|||
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
(in thousands)
|
|
Notional amount
|
|
Fair value
|
|
Notional amount
|
|
Fair value
|
||||||||
|
Interest rate lock commitments
|
|
$
|
40,392
|
|
|
$
|
473
|
|
|
$
|
10,180
|
|
|
$
|
91
|
|
|
Forward commitments
|
|
41,640
|
|
|
(115
|
)
|
|
10,132
|
|
|
(43
|
)
|
||||
|
Derivative Financial Instruments Not Designated as Hedging Instruments 1
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
(in thousands)
|
|
Asset derivatives
|
|
Liability
derivatives
|
|
Asset derivatives
|
|
Liability
derivatives |
||||||||
|
Interest rate lock commitments
|
|
$
|
473
|
|
|
$
|
—
|
|
|
$
|
91
|
|
|
$
|
—
|
|
|
Forward commitments
|
|
10
|
|
|
125
|
|
|
—
|
|
|
43
|
|
||||
|
|
|
$
|
483
|
|
|
$
|
125
|
|
|
$
|
91
|
|
|
$
|
43
|
|
|
Derivative Financial Instruments Not Designated as Hedging Instruments
|
|
Location of net gains (losses) recognized in the Statements of Income
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
(in thousands)
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
|
Interest rate lock commitments
|
|
Mortgage banking income
|
|
$
|
11
|
|
|
$
|
(7
|
)
|
|
$
|
382
|
|
|
$
|
117
|
|
|
Forward commitments
|
|
Mortgage banking income
|
|
46
|
|
|
(2
|
)
|
|
(72
|
)
|
|
(38
|
)
|
||||
|
|
|
|
|
$
|
57
|
|
|
$
|
(9
|
)
|
|
$
|
310
|
|
|
$
|
79
|
|
|
|
Series 2019A
|
|
Aggregate principal amount
|
$50 million
|
|
Fixed coupon interest rate
|
4.21%
|
|
Maturity date
|
May 15, 2034
|
|
Principal amount by company:
|
|
|
Hawaiian Electric
|
$30 million
|
|
Hawaii Electric Light
|
$10 million
|
|
Maui Electric
|
$10 million
|
|
|
2004 Junior subordinated deferrable interest debentures redeemed
|
|
Aggregate principal amount
|
$51.5 million
|
|
Fixed coupon interest rate
|
6.50%
|
|
Maturity date
|
May 15, 2034
|
|
Principal amount by company:
|
|
|
Hawaiian Electric
|
$31.5 million
|
|
Hawaii Electric Light
|
$10 million
|
|
Maui Electric
|
$10 million
|
|
|
Refunding Series 2019 Special Purpose Revenue Bonds
|
|
Aggregate principal amount
|
$150 million
|
|
Fixed coupon interest rate
|
3.20%
|
|
Maturity date
|
July 1, 2039
|
|
DBF loaned the proceeds to:
|
|
|
Hawaiian Electric
|
$90 million
|
|
Hawaii Electric Light
|
$60 million
|
|
|
Series 2009 Special Purpose Revenue Bonds Redeemed
|
|
Aggregate principal amount
|
$150 million
|
|
Fixed coupon interest rate
|
6.50%
|
|
Maturity date
|
July 1, 2039
|
|
Principal amount by company:
|
|
|
Hawaiian Electric
|
$90 million
|
|
Hawaii Electric Light
|
$60 million
|
|
|
HEI consolidated
|
|
Hawaiian Electric consolidated
|
||||||||||||||||
|
Three months ended June 30, 2019
(in thousands)
|
Other leases
|
PPAs classified as leases
|
Total
|
|
Other leases
|
PPAs classified as leases
|
Total
|
||||||||||||
|
Operating lease cost
|
$
|
3,056
|
|
$
|
15,478
|
|
$
|
18,534
|
|
|
$
|
1,523
|
|
$
|
15,478
|
|
$
|
17,001
|
|
|
Variable lease cost
|
3,396
|
|
43,985
|
|
47,381
|
|
|
2,764
|
|
43,985
|
|
46,749
|
|
||||||
|
Total lease cost
|
$
|
6,452
|
|
$
|
59,463
|
|
$
|
65,915
|
|
|
$
|
4,287
|
|
$
|
59,463
|
|
$
|
63,750
|
|
|
Other information
|
|
|
|
|
|
|
|
||||||||||||
|
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases
|
$
|
2,593
|
|
$
|
14,329
|
|
$
|
16,922
|
|
|
$
|
1,411
|
|
$
|
14,329
|
|
$
|
15,740
|
|
|
|
HEI consolidated
|
|
Hawaiian Electric consolidated
|
||||||||||||||||
|
Six months ended June 30, 2019
(in thousands) |
Other leases
|
PPAs classified as leases
|
Total
|
|
Other leases
|
PPAs classified as leases
|
Total
|
||||||||||||
|
Operating lease cost
|
$
|
5,740
|
|
$
|
30,956
|
|
$
|
36,696
|
|
|
$
|
3,009
|
|
$
|
30,956
|
|
$
|
33,965
|
|
|
Variable lease cost
|
6,200
|
|
85,265
|
|
91,465
|
|
|
4,850
|
|
85,265
|
|
90,115
|
|
||||||
|
Total lease cost
|
$
|
11,940
|
|
$
|
116,221
|
|
$
|
128,161
|
|
|
$
|
7,859
|
|
$
|
116,221
|
|
$
|
124,080
|
|
|
Other information
|
|
|
|
|
|
|
|
||||||||||||
|
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases
|
$
|
5,179
|
|
$
|
29,367
|
|
$
|
34,546
|
|
|
$
|
2,808
|
|
$
|
29,367
|
|
$
|
32,175
|
|
|
Weighted-average remaining lease term—operating leases (in years)
|
6.6
|
|
3.3
|
|
3.8
|
|
|
4.8
|
|
3.3
|
|
3.4
|
|
||||||
|
Weighted-average discount rate—operating leases
|
3.70
|
%
|
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)
|
$
|
5
|
|
$
|
32
|
|
$
|
37
|
|
|
$
|
3
|
|
$
|
32
|
|
$
|
35
|
|
|
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
|
|
||||||
|
2024
|
3
|
|
—
|
|
3
|
|
|
1
|
|
—
|
|
1
|
|
||||||
|
Thereafter
|
8
|
|
—
|
|
8
|
|
|
2
|
|
—
|
|
2
|
|
||||||
|
Total lease payments
|
43
|
|
200
|
|
243
|
|
|
21
|
|
200
|
|
221
|
|
||||||
|
Less: Imputed interest
|
(5
|
)
|
(12
|
)
|
(17
|
)
|
|
(2
|
)
|
(12
|
)
|
(14
|
)
|
||||||
|
Total present value of lease payments
|
$
|
38
|
|
$
|
188
|
|
$
|
226
|
|
|
$
|
19
|
|
$
|
188
|
|
$
|
207
|
|
|
|
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)
|
23,593
|
|
|
(1,063
|
)
|
|
410
|
|
|
22,940
|
|
|
47
|
|
|||||
|
Balance, June 30, 2019
|
$
|
(830
|
)
|
|
$
|
(1,499
|
)
|
|
$
|
(25,341
|
)
|
|
$
|
(27,670
|
)
|
|
$
|
146
|
|
|
Balance, December 31, 2017
|
$
|
(14,951
|
)
|
|
$
|
—
|
|
|
$
|
(26,990
|
)
|
|
$
|
(41,941
|
)
|
|
$
|
(1,219
|
)
|
|
Current period other comprehensive income (loss)
|
(17,645
|
)
|
|
—
|
|
|
1,047
|
|
|
(16,598
|
)
|
|
57
|
|
|||||
|
Balance, June 30, 2018
|
$
|
(32,596
|
)
|
|
$
|
—
|
|
|
$
|
(25,943
|
)
|
|
$
|
(58,539
|
)
|
|
$
|
(1,162
|
)
|
|
|
|
Amount reclassified from AOCI
|
|
|
||||||||||||||
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
|
Affected line item in the
|
||||||||||||
|
(in thousands)
|
|
2019
|
|
2018
|
|
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
|
|
|
$
|
5,350
|
|
|
$
|
5,006
|
|
|
$
|
10,496
|
|
|
See Note 9 for additional details
|
|
Impact of D&Os of the PUC included in regulatory assets
|
|
(2,298
|
)
|
|
(4,827
|
)
|
|
(4,596
|
)
|
|
(9,449
|
)
|
|
See Note 9 for additional details
|
||||
|
Total reclassifications
|
|
$
|
205
|
|
|
$
|
523
|
|
|
$
|
410
|
|
|
$
|
1,047
|
|
|
|
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Retirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost
|
|
$
|
2,321
|
|
|
$
|
4,853
|
|
|
$
|
4,643
|
|
|
$
|
9,506
|
|
|
See Note 9 for additional details
|
|
Impact of D&Os of the PUC included in regulatory assets
|
|
(2,298
|
)
|
|
(4,827
|
)
|
|
(4,596
|
)
|
|
(9,449
|
)
|
|
See Note 9 for additional details
|
||||
|
Total reclassifications
|
|
$
|
23
|
|
|
$
|
26
|
|
|
$
|
47
|
|
|
$
|
57
|
|
|
|
|
|
|
Three months ended June 30, 2019
|
|
Six months ended June 30, 2019
|
||||||||||||||||||||||||||||
|
(in thousands)
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
||||||||||||||||
|
Revenues from contracts with customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Electric energy sales - residential
|
|
$
|
195,868
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
195,868
|
|
|
$
|
371,613
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
371,613
|
|
|
Electric energy sales - commercial
|
|
217,278
|
|
|
—
|
|
|
—
|
|
|
217,278
|
|
|
404,686
|
|
|
—
|
|
|
—
|
|
|
404,686
|
|
||||||||
|
Electric energy sales - large light and power
|
|
231,869
|
|
|
—
|
|
|
—
|
|
|
231,869
|
|
|
430,795
|
|
|
—
|
|
|
—
|
|
|
430,795
|
|
||||||||
|
Electric energy sales - other
|
|
3,774
|
|
|
—
|
|
|
—
|
|
|
3,774
|
|
|
7,852
|
|
|
—
|
|
|
—
|
|
|
7,852
|
|
||||||||
|
Bank fees
|
|
—
|
|
|
11,632
|
|
|
—
|
|
|
11,632
|
|
|
—
|
|
|
22,865
|
|
|
—
|
|
|
22,865
|
|
||||||||
|
Total revenues from contracts with customers
|
|
648,789
|
|
|
11,632
|
|
|
—
|
|
|
660,421
|
|
|
1,214,946
|
|
|
22,865
|
|
|
—
|
|
|
1,237,811
|
|
||||||||
|
Revenues from other sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Regulatory revenue
|
|
(20,360
|
)
|
|
—
|
|
|
—
|
|
|
(20,360
|
)
|
|
(14,153
|
)
|
|
—
|
|
|
—
|
|
|
(14,153
|
)
|
||||||||
|
Bank interest and dividend income
|
|
—
|
|
|
66,155
|
|
|
—
|
|
|
66,155
|
|
|
—
|
|
|
134,643
|
|
|
—
|
|
|
134,643
|
|
||||||||
|
Other bank noninterest income
|
|
—
|
|
|
3,900
|
|
|
—
|
|
|
3,900
|
|
|
—
|
|
|
7,231
|
|
|
—
|
|
|
7,231
|
|
||||||||
|
Other
|
|
5,355
|
|
|
—
|
|
|
14
|
|
|
5,369
|
|
|
11,486
|
|
|
—
|
|
|
82
|
|
|
11,568
|
|
||||||||
|
Total revenues from other sources
|
|
(15,005
|
)
|
|
70,055
|
|
|
14
|
|
|
55,064
|
|
|
(2,667
|
)
|
|
141,874
|
|
|
82
|
|
|
139,289
|
|
||||||||
|
Total revenues
|
|
$
|
633,784
|
|
|
$
|
81,687
|
|
|
$
|
14
|
|
|
$
|
715,485
|
|
|
$
|
1,212,279
|
|
|
$
|
164,739
|
|
|
$
|
82
|
|
|
$
|
1,377,100
|
|
|
Timing of revenue recognition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Services/goods transferred at a point in time
|
|
$
|
—
|
|
|
$
|
11,632
|
|
|
$
|
—
|
|
|
$
|
11,632
|
|
|
$
|
—
|
|
|
$
|
22,865
|
|
|
$
|
—
|
|
|
$
|
22,865
|
|
|
Services/goods transferred over time
|
|
648,789
|
|
|
—
|
|
|
—
|
|
|
648,789
|
|
|
1,214,946
|
|
|
—
|
|
|
—
|
|
|
1,214,946
|
|
||||||||
|
Total revenues from contracts with customers
|
|
$
|
648,789
|
|
|
$
|
11,632
|
|
|
$
|
—
|
|
|
$
|
660,421
|
|
|
$
|
1,214,946
|
|
|
$
|
22,865
|
|
|
$
|
—
|
|
|
$
|
1,237,811
|
|
|
|
|
Three months ended June 30, 2018
|
|
Six months ended June 30, 2018
|
||||||||||||||||||||||||||||
|
(in thousands)
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
|
Electric utility
|
|
Bank
|
|
Other
|
|
Total
|
||||||||||||||||
|
Revenues from contracts with customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Electric energy sales - residential
|
|
$
|
185,217
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
185,217
|
|
|
$
|
363,806
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
363,806
|
|
|
Electric energy sales - commercial
|
|
206,169
|
|
|
—
|
|
|
—
|
|
|
206,169
|
|
|
395,167
|
|
|
—
|
|
|
—
|
|
|
395,167
|
|
||||||||
|
Electric energy sales - large light and power
|
|
214,676
|
|
|
—
|
|
|
—
|
|
|
214,676
|
|
|
406,997
|
|
|
—
|
|
|
—
|
|
|
406,997
|
|
||||||||
|
Electric energy sales - other
|
|
3,968
|
|
|
—
|
|
|
—
|
|
|
3,968
|
|
|
8,028
|
|
|
—
|
|
|
—
|
|
|
8,028
|
|
||||||||
|
Bank fees
|
|
—
|
|
|
11,557
|
|
|
—
|
|
|
11,557
|
|
|
—
|
|
|
23,054
|
|
|
—
|
|
|
23,054
|
|
||||||||
|
Total revenues from contracts with customers
|
|
610,030
|
|
|
11,557
|
|
|
—
|
|
|
621,587
|
|
|
1,173,998
|
|
|
23,054
|
|
|
—
|
|
|
1,197,052
|
|
||||||||
|
Revenues from other sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Regulatory revenue
|
|
(4,643
|
)
|
|
—
|
|
|
—
|
|
|
(4,643
|
)
|
|
107
|
|
|
—
|
|
|
—
|
|
|
107
|
|
||||||||
|
Bank interest and dividend income
|
|
—
|
|
|
63,261
|
|
|
—
|
|
|
63,261
|
|
|
—
|
|
|
125,263
|
|
|
—
|
|
|
125,263
|
|
||||||||
|
Other bank noninterest income
|
|
—
|
|
|
2,286
|
|
|
—
|
|
|
2,286
|
|
|
—
|
|
|
4,206
|
|
|
—
|
|
|
4,206
|
|
||||||||
|
Other
|
|
2,739
|
|
|
—
|
|
|
47
|
|
|
2,786
|
|
|
4,448
|
|
|
—
|
|
|
75
|
|
|
4,523
|
|
||||||||
|
Total revenues from other sources
|
|
(1,904
|
)
|
|
65,547
|
|
|
47
|
|
|
63,690
|
|
|
4,555
|
|
|
129,469
|
|
|
75
|
|
|
134,099
|
|
||||||||
|
Total revenues
|
|
$
|
608,126
|
|
|
$
|
77,104
|
|
|
$
|
47
|
|
|
$
|
685,277
|
|
|
$
|
1,178,553
|
|
|
$
|
152,523
|
|
|
$
|
75
|
|
|
$
|
1,331,151
|
|
|
Timing of revenue recognition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Services/goods transferred at a point in time
|
|
$
|
751
|
|
|
$
|
11,557
|
|
|
$
|
—
|
|
|
$
|
12,308
|
|
|
$
|
1,548
|
|
|
$
|
23,054
|
|
|
$
|
—
|
|
|
$
|
24,602
|
|
|
Services/goods transferred over time
|
|
609,279
|
|
|
—
|
|
|
—
|
|
|
609,279
|
|
|
1,172,450
|
|
|
—
|
|
|
—
|
|
|
1,172,450
|
|
||||||||
|
Total revenues from contracts with customers
|
|
$
|
610,030
|
|
|
$
|
11,557
|
|
|
$
|
—
|
|
|
$
|
621,587
|
|
|
$
|
1,173,998
|
|
|
$
|
23,054
|
|
|
$
|
—
|
|
|
$
|
1,197,052
|
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||||||||||||||||
|
|
|
Pension benefits
|
|
Other benefits
|
|
Pension benefits
|
|
Other benefits
|
||||||||||||||||||||||||
|
(in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
|
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Service cost
|
|
$
|
15,382
|
|
|
$
|
17,428
|
|
|
$
|
542
|
|
|
$
|
692
|
|
|
$
|
30,764
|
|
|
$
|
34,541
|
|
|
$
|
1,083
|
|
|
$
|
1,361
|
|
|
Interest cost
|
|
21,033
|
|
|
19,459
|
|
|
1,997
|
|
|
2,030
|
|
|
42,066
|
|
|
38,693
|
|
|
3,994
|
|
|
3,961
|
|
||||||||
|
Expected return on plan assets
|
|
(27,999
|
)
|
|
(27,224
|
)
|
|
(3,086
|
)
|
|
(3,267
|
)
|
|
(55,997
|
)
|
|
(54,478
|
)
|
|
(6,172
|
)
|
|
(6,459
|
)
|
||||||||
|
Amortization of net prior service gain
|
|
(11
|
)
|
|
(11
|
)
|
|
(452
|
)
|
|
(451
|
)
|
|
(22
|
)
|
|
(21
|
)
|
|
(904
|
)
|
|
(903
|
)
|
||||||||
|
Amortization of net actuarial (gains) losses
|
|
3,839
|
|
|
7,634
|
|
|
(4
|
)
|
|
48
|
|
|
7,678
|
|
|
15,029
|
|
|
(7
|
)
|
|
46
|
|
||||||||
|
Net periodic pension/benefit cost (return)
|
|
12,244
|
|
|
17,286
|
|
|
(1,003
|
)
|
|
(948
|
)
|
|
24,489
|
|
|
33,764
|
|
|
(2,006
|
)
|
|
(1,994
|
)
|
||||||||
|
Impact of PUC D&Os
|
|
12,278
|
|
|
7,179
|
|
|
811
|
|
|
1,024
|
|
|
24,557
|
|
|
9,836
|
|
|
1,622
|
|
|
2,095
|
|
||||||||
|
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
|
|
$
|
24,522
|
|
|
$
|
24,465
|
|
|
$
|
(192
|
)
|
|
$
|
76
|
|
|
$
|
49,046
|
|
|
$
|
43,600
|
|
|
$
|
(384
|
)
|
|
$
|
101
|
|
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Service cost
|
|
$
|
15,001
|
|
|
$
|
17,007
|
|
|
$
|
538
|
|
|
$
|
688
|
|
|
$
|
30,002
|
|
|
$
|
33,680
|
|
|
$
|
1,075
|
|
|
$
|
1,352
|
|
|
Interest cost
|
|
19,414
|
|
|
17,937
|
|
|
1,918
|
|
|
1,955
|
|
|
38,828
|
|
|
35,647
|
|
|
3,835
|
|
|
3,814
|
|
||||||||
|
Expected return on plan assets
|
|
(26,164
|
)
|
|
(25,577
|
)
|
|
(3,036
|
)
|
|
(3,216
|
)
|
|
(52,328
|
)
|
|
(51,184
|
)
|
|
(6,071
|
)
|
|
(6,356
|
)
|
||||||||
|
Amortization of net prior service (gain) cost
|
|
2
|
|
|
2
|
|
|
(451
|
)
|
|
(451
|
)
|
|
4
|
|
|
4
|
|
|
(902
|
)
|
|
(902
|
)
|
||||||||
|
Amortization of net actuarial loss
|
|
3,576
|
|
|
6,941
|
|
|
—
|
|
|
49
|
|
|
7,152
|
|
|
13,651
|
|
|
—
|
|
|
49
|
|
||||||||
|
Net periodic pension/benefit cost (return)
|
|
11,829
|
|
|
16,310
|
|
|
(1,031
|
)
|
|
(975
|
)
|
|
23,658
|
|
|
31,798
|
|
|
(2,063
|
)
|
|
(2,043
|
)
|
||||||||
|
Impact of PUC D&Os
|
|
12,278
|
|
|
7,179
|
|
|
811
|
|
|
1,024
|
|
|
24,557
|
|
|
9,836
|
|
|
1,622
|
|
|
2,095
|
|
||||||||
|
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
|
|
$
|
24,107
|
|
|
$
|
23,489
|
|
|
$
|
(220
|
)
|
|
$
|
49
|
|
|
$
|
48,215
|
|
|
$
|
41,634
|
|
|
$
|
(441
|
)
|
|
$
|
52
|
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
HEI consolidated
|
|
|
|
|
|
|
|
|
||||||||
|
Share-based compensation expense 1
|
|
$
|
3.7
|
|
|
$
|
2.8
|
|
|
$
|
5.9
|
|
|
$
|
4.4
|
|
|
Income tax benefit
|
|
0.7
|
|
|
0.5
|
|
|
0.9
|
|
|
0.7
|
|
||||
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
||||||||
|
Share-based compensation expense 1
|
|
1.1
|
|
|
0.9
|
|
|
1.8
|
|
|
1.5
|
|
||||
|
Income tax benefit
|
|
0.2
|
|
|
0.2
|
|
|
0.3
|
|
|
0.3
|
|
||||
|
1
|
For the three and six months ended June 30, 2019 and 2018, the Company has not capitalized any share-based compensation.
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
(dollars in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Shares granted
|
|
35,580
|
|
|
37,747
|
|
|
35,580
|
|
|
38,821
|
|
||||
|
Fair value
|
|
$
|
1.5
|
|
|
$
|
1.3
|
|
|
$
|
1.5
|
|
|
$
|
1.3
|
|
|
Income tax benefit
|
|
0.4
|
|
|
0.3
|
|
|
0.4
|
|
|
0.3
|
|
||||
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||||||
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||||||||||
|
Outstanding, beginning of period
|
211,225
|
|
|
$
|
35.28
|
|
|
208,088
|
|
|
$
|
32.97
|
|
|
200,358
|
|
|
$
|
33.05
|
|
|
197,047
|
|
|
$
|
31.53
|
|
||||
|
Granted
|
—
|
|
|
—
|
|
|
3,159
|
|
|
33.78
|
|
|
94,559
|
|
|
37.68
|
|
|
92,064
|
|
|
34.09
|
|
||||||||
|
Vested
|
—
|
|
|
—
|
|
|
(448
|
)
|
|
31.94
|
|
|
(76,712
|
)
|
|
32.61
|
|
|
(75,683
|
)
|
|
30.56
|
|
||||||||
|
Forfeited
|
(2,600
|
)
|
|
35.56
|
|
|
(9,943
|
)
|
|
32.05
|
|
|
(9,580
|
)
|
|
33.82
|
|
|
(12,572
|
)
|
|
32.27
|
|
||||||||
|
Outstanding, end of period
|
208,625
|
|
|
$
|
35.28
|
|
|
200,856
|
|
|
$
|
33.03
|
|
|
208,625
|
|
|
$
|
35.28
|
|
|
200,856
|
|
|
$
|
33.03
|
|
||||
|
Total weighted-average grant-date fair value of shares granted (in millions)
|
$
|
—
|
|
|
|
|
$
|
0.1
|
|
|
|
|
$
|
3.6
|
|
|
|
|
$
|
3.1
|
|
|
|
||||||||
|
(1)
|
Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||||||
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||||||||||
|
Outstanding, beginning of period
|
98,311
|
|
|
$
|
39.61
|
|
|
66,791
|
|
|
$
|
38.84
|
|
|
65,578
|
|
|
$
|
38.81
|
|
|
32,904
|
|
|
$
|
39.51
|
|
||||
|
Granted
|
—
|
|
|
—
|
|
|
1,315
|
|
|
38.20
|
|
|
34,647
|
|
|
41.07
|
|
|
36,941
|
|
|
38.21
|
|
||||||||
|
Vested (issued or unissued and cancelled)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
Forfeited
|
—
|
|
|
—
|
|
|
(1,929
|
)
|
|
38.85
|
|
|
(1,914
|
)
|
|
38.62
|
|
|
(3,668
|
)
|
|
38.84
|
|
||||||||
|
Outstanding, end of period
|
98,311
|
|
|
$
|
39.61
|
|
|
66,177
|
|
|
$
|
38.82
|
|
|
98,311
|
|
|
$
|
39.61
|
|
|
66,177
|
|
|
$
|
38.82
|
|
||||
|
Total weighted-average grant-date fair value of shares granted (in millions)
|
$
|
—
|
|
|
|
|
$
|
0.1
|
|
|
|
|
$
|
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 June 30
|
|
Six months ended June 30
|
||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||||||
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
|
Shares
|
|
(1)
|
||||||||||||||||
|
Outstanding, beginning of period
|
407,090
|
|
|
$
|
35.12
|
|
|
267,167
|
|
|
$
|
33.80
|
|
|
276,169
|
|
|
$
|
33.80
|
|
|
131,616
|
|
|
$
|
33.47
|
|
||||
|
Granted
|
—
|
|
|
—
|
|
|
5,257
|
|
|
33.52
|
|
|
138,580
|
|
|
37.68
|
|
|
147,766
|
|
|
34.08
|
|
||||||||
|
Vested
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
Forfeited
|
—
|
|
|
—
|
|
|
(7,717
|
)
|
|
33.80
|
|
|
(7,659
|
)
|
|
33.91
|
|
|
(14,675
|
)
|
|
33.80
|
|
||||||||
|
Outstanding, end of period
|
407,090
|
|
|
$
|
35.12
|
|
|
264,707
|
|
|
$
|
33.79
|
|
|
407,090
|
|
|
$
|
35.12
|
|
|
264,707
|
|
|
$
|
33.79
|
|
||||
|
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions)
|
$
|
—
|
|
|
|
|
$
|
0.2
|
|
|
|
|
$
|
5.2
|
|
|
|
|
$
|
5.0
|
|
|
|
||||||||
|
(1)
|
Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.
|
|
Six months ended June 30
|
|
2019
|
|
2018
|
||||
|
(in millions)
|
|
|
|
|
||||
|
Supplemental disclosures of cash flow information
|
|
|
|
|
|
|
||
|
HEI consolidated
|
|
|
|
|
||||
|
Interest paid to non-affiliates, net of amounts capitalized
|
|
$
|
53
|
|
|
$
|
45
|
|
|
Income taxes paid (including refundable credits)
|
|
46
|
|
|
36
|
|
||
|
Income taxes refunded (including refundable credits)
|
|
4
|
|
|
—
|
|
||
|
Hawaiian Electric consolidated
|
|
|
|
|
||||
|
Interest paid to non-affiliates
|
|
34
|
|
|
32
|
|
||
|
Income taxes paid (including refundable credits)
|
|
46
|
|
|
35
|
|
||
|
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)
|
|
1
|
|
|
5
|
|
||
|
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing)
|
|
30
|
|
|
42
|
|
||
|
Common stock issued (gross) for director and executive/management compensation (financing)1
|
|
5
|
|
|
4
|
|
||
|
Real estate transferred from property, plant and equipment to other assets held-for-sale (investing)
|
|
9
|
|
|
—
|
|
||
|
Obligations to fund low income housing investments (investing)
|
|
6
|
|
|
6
|
|
||
|
Transfer of retail repurchase agreements to deposit liabilities (financing)
|
|
—
|
|
|
102
|
|
||
|
Unsettled trades to purchase investment securities (investing)
|
|
—
|
|
|
10
|
|
||
|
Hawaiian Electric consolidated
|
|
|
|
|
||||
|
Electric utility property, plant and equipment
|
|
|
|
|
||||
|
Estimated fair value of noncash contributions in aid of construction (investing)
|
|
1
|
|
|
5
|
|
||
|
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing)
|
|
27
|
|
|
28
|
|
||
|
|
|
|
|
Estimated fair value
|
||||||||||||||||
|
|
|
Carrying or notional amount
|
|
Quoted prices in
active markets
for identical assets
|
|
Significant
other observable
inputs
|
|
Significant
unobservable
inputs
|
|
|
||||||||||
|
(in thousands)
|
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Total
|
|||||||||||
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Available-for-sale investment securities
|
|
$
|
1,298,010
|
|
|
$
|
—
|
|
|
$
|
1,269,844
|
|
|
$
|
28,166
|
|
|
$
|
1,298,010
|
|
|
Held-to-maturity investment securities
|
|
137,029
|
|
|
—
|
|
|
141,231
|
|
|
—
|
|
|
141,231
|
|
|||||
|
Stock in Federal Home Loan Bank
|
|
8,434
|
|
|
—
|
|
|
8,434
|
|
|
—
|
|
|
8,434
|
|
|||||
|
Loans, net
|
|
4,959,260
|
|
|
—
|
|
|
9,233
|
|
|
5,029,542
|
|
|
5,038,775
|
|
|||||
|
Mortgage servicing rights
|
|
8,103
|
|
|
—
|
|
|
—
|
|
|
12,240
|
|
|
12,240
|
|
|||||
|
Derivative assets
|
|
46,051
|
|
|
—
|
|
|
483
|
|
|
—
|
|
|
483
|
|
|||||
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
HEI consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Deposit liabilities
|
|
855,745
|
|
|
—
|
|
|
850,123
|
|
|
—
|
|
|
850,123
|
|
|||||
|
Short-term borrowings—other than bank
|
|
211,893
|
|
|
—
|
|
|
211,893
|
|
|
—
|
|
|
211,893
|
|
|||||
|
Other bank borrowings
|
|
111,485
|
|
|
—
|
|
|
111,480
|
|
|
—
|
|
|
111,480
|
|
|||||
|
Long-term debt, net—other than bank
|
|
1,884,030
|
|
|
—
|
|
|
2,036,486
|
|
|
—
|
|
|
2,036,486
|
|
|||||
|
Derivative liabilities
|
|
59,981
|
|
|
78
|
|
|
2,066
|
|
|
—
|
|
|
2,144
|
|
|||||
|
Hawaiian Electric consolidated
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Short-term borrowings
|
|
161,901
|
|
|
—
|
|
|
161,901
|
|
|
—
|
|
|
161,901
|
|
|||||
|
Long-term debt, net
|
|
1,417,917
|
|
|
—
|
|
|
1,551,097
|
|
|
—
|
|
|
1,551,097
|
|
|||||
|
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
|
|
|||||
|
|
|
June 30, 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
|
|
$
|
—
|
|
|
$
|
1,087,487
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,161,416
|
|
|
$
|
—
|
|
|
U.S. Treasury and federal agency obligations
|
|
—
|
|
|
131,206
|
|
|
—
|
|
|
—
|
|
|
154,349
|
|
|
—
|
|
||||||
|
Corporate bonds
|
|
—
|
|
|
51,151
|
|
|
—
|
|
|
—
|
|
|
49,132
|
|
|
—
|
|
||||||
|
Mortgage revenue bonds
|
|
—
|
|
|
—
|
|
|
28,166
|
|
|
—
|
|
|
—
|
|
|
23,636
|
|
||||||
|
|
|
$
|
—
|
|
|
$
|
1,269,844
|
|
|
$
|
28,166
|
|
|
$
|
—
|
|
|
$
|
1,364,897
|
|
|
$
|
23,636
|
|
|
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Interest rate lock commitments (bank segment)1
|
|
$
|
—
|
|
|
$
|
473
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
91
|
|
|
$
|
—
|
|
|
Forward commitments (bank segment)1
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
$
|
—
|
|
|
$
|
483
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
91
|
|
|
$
|
—
|
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Forward commitments (bank segment)1
|
|
$
|
78
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
Interest rate swap (Other segment)2
|
|
—
|
|
|
2,019
|
|
|
—
|
|
|
—
|
|
|
587
|
|
|
—
|
|
||||||
|
|
|
$
|
78
|
|
|
$
|
2,066
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
596
|
|
|
$
|
—
|
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
|
Mortgage revenue bonds
|
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||||
|
Beginning balance
|
|
$
|
27,970
|
|
$
|
15,427
|
|
|
$
|
23,636
|
|
$
|
15,427
|
|
|
Principal payments received
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
|
Purchases
|
|
196
|
|
—
|
|
|
4,530
|
|
—
|
|
||||
|
Unrealized gain (loss) included in other comprehensive income
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
|
Ending balance
|
|
$
|
28,166
|
|
$
|
15,427
|
|
|
$
|
28,166
|
|
$
|
15,427
|
|
|
|
|
|
|
Fair value measurements
|
||||||||||||
|
(in thousands)
|
|
Balance
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
June 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
|
Loans
|
|
$
|
224
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
224
|
|
|
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
|
||
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||
|
Home equity line of credit
|
|
$
|
199
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling cost
|
|
|
|
N/A (2)
|
|
Residential land
|
|
25
|
|
|
Fair value of property or collateral
|
|
Appraised value less 7% selling cost
|
|
|
|
N/A (2)
|
|
|
Total loans
|
|
$
|
224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
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)
|
|
|
|
Three months ended June 30, 2019
|
|
%
|
|
|
|||||||
|
(in thousands)
|
|
2019
|
|
2018
|
|
change
|
|
Primary reason(s)*
|
|||||
|
Revenues
|
|
$
|
715,485
|
|
|
$
|
685,277
|
|
|
4
|
|
|
Increases for the electric utility and bank segments
|
|
Operating income
|
|
72,634
|
|
|
78,799
|
|
|
(8
|
)
|
|
Decrease for bank segment and higher operating losses for the “other” segment, partly offset by an
increase for the electric utility segment
|
||
|
Net income for common stock
|
|
42,512
|
|
|
46,054
|
|
|
(8
|
)
|
|
Lower net income at bank segment and higher net losses at the “other” segment, partly offset by higher net income at the electric utility. See below for effective tax rate explanation.
|
||
|
|
|
Six months ended June 30, 2019
|
|
%
|
|
|
|||||||
|
(in thousands)
|
|
2019
|
|
2018
|
|
change
|
|
Primary reason(s)*
|
|||||
|
Revenues
|
|
$
|
1,377,100
|
|
|
$
|
1,331,151
|
|
|
3
|
|
|
Increases for the electric utility and bank segments
|
|
Operating income
|
|
150,571
|
|
|
150,688
|
|
|
—
|
|
|
Decrease for bank segment and higher operating losses for the “other” segment, offset by
an increase for the electric utility segment |
||
|
Net income for common stock
|
|
88,200
|
|
|
86,301
|
|
|
2
|
|
|
Higher net income at the electric utility segment, partly offset by lower net income at the bank segment and higher net losses at the “other” segment. See below for effective tax rate explanation.
|
||
|
*
|
Also, see segment discussions which follow.
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
|
|
||||||||||||
|
(in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Primary reason(s)
|
||||||||
|
Revenues
|
|
$
|
14
|
|
|
$
|
47
|
|
|
$
|
82
|
|
|
$
|
75
|
|
|
|
|
Operating loss
|
|
(4,312
|
)
|
|
(3,262
|
)
|
|
(9,057
|
)
|
|
(7,629
|
)
|
|
The second quarters of 2019 and 2018 include $1.2 million and $1.3 million, respectively, of operating income from Pacific Current1. Second quarter 2019 corporate expense was $0.9 million higher than the second quarter of 2018, primarily due to higher professional fees. The six months ended June 30, 2019 and 2018 include $1.4 million and $2.3 million, respectively, of operating income from Pacific Current1. The lower Pacific Current operating income was primarily due to the hiring of Pacific Current employees. Corporate expense for the second quarter of 2019 was $0.5 million higher than the second quarter of 2018, primarily due to higher professional fees, partly offset by lower incentive compensation accruals and adjustments in the first six months of 2018, as compared to the first six months of 2019.
|
||||
|
Net loss
|
|
(7,078
|
)
|
|
(5,676
|
)
|
|
(14,355
|
)
|
|
(11,864
|
)
|
|
The net loss for the second quarter and first six months of 2019 was higher than the net loss for the second quarter and first six months of 2018 due to higher interest expense (as a result of higher interest rates and balances at corporate), higher HEI corporate expenses.
and lower Pacific Current income, partially offset by a higher income tax benefit.
|
||||
|
1
|
Hamakua Energy’s sales to Hawaii Electric Light (a regulated affiliate) are eliminated in consolidation.
|
|
(dollars in millions)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||
|
Short-term borrowings—other than bank
|
|
$
|
212
|
|
|
5
|
%
|
|
$
|
74
|
|
|
2
|
%
|
|
Long-term debt, net—other than bank
|
|
1,884
|
|
|
43
|
|
|
1,880
|
|
|
45
|
|
||
|
Preferred stock of subsidiaries
|
|
34
|
|
|
1
|
|
|
34
|
|
|
1
|
|
||
|
Common stock equity
|
|
2,209
|
|
|
51
|
|
|
2,162
|
|
|
52
|
|
||
|
|
|
$
|
4,339
|
|
|
100
|
%
|
|
$
|
4,150
|
|
|
100
|
%
|
|
|
|
Average balance
|
|
Balance
|
||||||||
|
(in millions)
|
|
Six months ended June 30, 2019
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||
|
Commercial paper
|
|
$
|
40
|
|
|
$
|
50
|
|
|
$
|
49
|
|
|
Line of credit draws
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Undrawn capacity under HEI’s line of credit facility
|
|
|
|
150
|
|
|
150
|
|
||||
|
Three months ended June 30,
|
|
Increase
|
|
|
||||||||||||
|
2019
|
|
2018
|
|
(decrease)
|
|
(dollars in millions, except per barrel amounts)
|
||||||||||
|
$
|
634
|
|
|
$
|
608
|
|
|
$
|
26
|
|
|
|
|
Revenues. Net increase largely due to:
|
||
|
|
|
|
|
|
|
$
|
7
|
|
|
higher rates
|
||||||
|
|
|
|
|
|
|
18
|
|
|
higher fuel oil prices1
|
|||||||
|
|
|
|
|
|
|
5
|
|
|
MPIR for Schofield Generating Station
|
|||||||
|
|
|
|
|
|
|
3
|
|
|
higher kWh purchased
|
|||||||
|
|
|
|
|
|
|
(7
|
)
|
|
lower kWh generated
|
|||||||
|
182
|
|
|
172
|
|
|
10
|
|
|
|
|
Fuel oil expense. Net increase largely due to higher fuel oil prices, partially offset by lower kWh generated
|
|||||
|
163
|
|
|
161
|
|
|
2
|
|
|
|
|
Purchased power expense. Net increase largely due to higher kWh purchased, partially offset by lower purchased power energy price2
|
|||||
|
119
|
|
|
113
|
|
|
6
|
|
|
|
|
Operation and maintenance expenses. Net increase largely due to:
|
|||||
|
|
|
|
|
|
|
4
|
|
|
higher generation overhaul costs
|
|||||||
|
|
|
|
|
|
|
1
|
|
|
increase in general liability and environmental reserves
|
|||||||
|
|
|
|
|
|
|
1
|
|
|
higher preventive/corrective expense for generating facilities
|
|||||||
|
114
|
|
|
108
|
|
|
6
|
|
|
|
|
Other expenses. Increase due to higher depreciation expense for plant investments in 2018, coupled with higher revenue taxes from higher revenue
|
|||||
|
56
|
|
|
55
|
|
|
1
|
|
|
|
|
Operating income. Increase due to higher revenue, offset in part by higher operation and maintenance and depreciation expenses
|
|||||
|
33
|
|
|
31
|
|
|
2
|
|
|
|
|
Net income for common stock. Increase due to higher rates and MPIR revenues, offset in part by higher expenses
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
2,119
|
|
|
2,128
|
|
|
(9
|
)
|
|
|
|
Kilowatthour sales (millions)3
|
|||||
|
$
|
88.38
|
|
|
$
|
81.84
|
|
|
$
|
6.54
|
|
|
|
|
Average fuel oil cost per barrel
|
||
|
Six months ended June 30
|
|
Increase
|
|
|
||||||||||||
|
2019
|
|
2018
|
|
(decrease)
|
|
(dollars in millions, except per barrel amounts)
|
||||||||||
|
$
|
1,212
|
|
|
$
|
1,179
|
|
|
$
|
33
|
|
|
|
|
Revenues. Net increase largely due to:
|
||
|
|
|
|
|
|
|
$
|
20
|
|
|
higher rates
|
||||||
|
|
|
|
|
|
|
17
|
|
|
higher fuel oil prices1
|
|||||||
|
|
|
|
|
|
|
10
|
|
|
MPIR for Schofield Generating Station
|
|||||||
|
|
|
|
|
|
|
5
|
|
|
higher purchased power energy costs
|
|||||||
|
|
|
|
|
|
|
(14
|
)
|
|
lower kWh generated
|
|||||||
|
|
|
|
|
|
|
(5
|
)
|
|
lower kWh purchased
|
|||||||
|
342
|
|
|
339
|
|
|
3
|
|
|
|
|
Fuel oil expense. Net increase largely due to higher fuel oil prices, partially offset by lower kWh generated
|
|||||
|
297
|
|
|
301
|
|
|
(4
|
)
|
|
|
|
Purchased power expense. Net decrease largely due to lower kWh purchased and lower capacity charges, partially offset by higher purchased power energy price2
|
|||||
|
237
|
|
|
220
|
|
|
17
|
|
|
|
|
Operation and maintenance expenses. Net increase largely due to:
|
|||||
|
|
|
|
|
|
|
4
|
|
|
reset of pension costs included in rates as part of rate case decisions
|
|||||||
|
|
|
|
|
|
|
4
|
|
|
higher outside services for system support (Asset management, Energy Management and Enterprise Systems)
|
|||||||
|
|
|
|
|
|
|
3
|
|
|
higher generation overhaul costs
|
|||||||
|
|
|
|
|
|
|
3
|
|
|
higher preventive/corrective expense for generating facilities
|
|||||||
|
|
|
|
|
|
|
2
|
|
|
higher administrative expense due to less being allocated to capital and billable projects
|
|||||||
|
|
|
|
|
|
|
2
|
|
|
cost incurred related to third-party mutual assistance work
|
|||||||
|
|
|
|
|
|
|
1
|
|
|
voluntary retirement bonus payout
|
|||||||
|
|
|
|
|
|
|
1
|
|
|
higher medical premium costs
|
|||||||
|
|
|
|
|
|
|
2
|
|
|
increase in general liability, property and environmental reserves
|
|||||||
|
|
|
|
|
|
|
(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
|
|||||||
|
|
|
|
|
|
|
(2
|
)
|
|
Smart Grid project cost write-off in 2018
|
|||||||
|
223
|
|
|
212
|
|
|
11
|
|
|
|
|
Other expenses. Increase due to higher depreciation expense for plant investments in 2018, coupled with higher revenue taxes from higher revenue
|
|||||
|
112
|
|
|
107
|
|
|
5
|
|
|
|
|
Operating income. Increase due to higher revenue, offset in part by higher operation and maintenance and depreciation expenses
|
|||||
|
65
|
|
|
59
|
|
|
6
|
|
|
|
|
Net income for common stock. Increase due to higher rates and MPIR revenues, offset in part by higher expenses and lower allowance for funds under construction (AFUDC) due to lower level of construction work in progress
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
4,035
|
|
|
4,140
|
|
|
(105
|
)
|
|
|
|
Kilowatthour sales (millions)3
|
|||||
|
$
|
84.44
|
|
|
$
|
81.26
|
|
|
$
|
3.18
|
|
|
|
|
Average fuel oil cost per barrel
|
||
|
464,281
|
|
|
462,547
|
|
|
1,734
|
|
|
|
|
Customer accounts (end of period)
|
|||||
|
1
|
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.
|
|
2
|
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.
|
|
%
|
|
Rate-making Return on rate base (RORB)*
|
|
ROACE**
|
|
Rate-making ROACE***
|
|||||||||||||||||||||
|
Twelve months ended
June 30, 2019
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|
Hawaiian Electric
|
|
Hawaii Electric Light
|
|
Maui Electric
|
|||||||||
|
Utility returns
|
|
6.55
|
|
|
7.08
|
|
|
6.51
|
|
|
7.68
|
|
|
8.30
|
|
|
8.08
|
|
|
8.00
|
|
|
8.43
|
|
|
7.95
|
|
|
PUC-allowed returns
|
|
7.57
|
|
|
7.80
|
|
|
7.43
|
|
|
9.50
|
|
|
9.50
|
|
|
9.50
|
|
|
9.50
|
|
|
9.50
|
|
|
9.50
|
|
|
Difference
|
|
(1.02
|
)
|
|
(0.72
|
)
|
|
(0.92
|
)
|
|
(1.82
|
)
|
|
(1.20
|
)
|
|
(1.42
|
)
|
|
(1.50
|
)
|
|
(1.07
|
)
|
|
(1.55
|
)
|
|
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. NPM has now received its Habitat Conservation Permit and is working to construct the project.
|
|
•
|
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 project is expected to be in service in 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 June 30, 2019, there were approximately 474 MW, 101 MW and 112 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 June 30, 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 June 30, 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 / 1,098
|
|
|
|
|
|
$
|
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. Draft Final Renewable RFPs for Oahu, Maui and Hawaii Island and Draft Final Grid Services RFP were filed on July 10, 2019. The scope of these RFPs have been expanded to accelerate renewable energy procurements beyond the remainder of the 2022 targets identified in Stage 1 to include the energy from the retiring Kahului Power Plant on Maui and the expiring AES facility on Oahu. For the Grid Services RFP, the targets have been expanded in alignment with the Renewable RFPs.
|
|
(dollars in millions)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||
|
Short-term borrowings
|
|
$
|
162
|
|
|
4
|
%
|
|
$
|
25
|
|
|
1
|
%
|
|
Long-term debt, net
|
|
1,418
|
|
|
40
|
|
|
1,419
|
|
|
41
|
|
||
|
Preferred stock
|
|
34
|
|
|
1
|
|
|
34
|
|
|
1
|
|
||
|
Common stock equity
|
|
1,972
|
|
|
55
|
|
|
1,958
|
|
|
57
|
|
||
|
|
|
$
|
3,586
|
|
|
100
|
%
|
|
$
|
3,436
|
|
|
100
|
%
|
|
|
|
Average balance
|
|
Balance
|
||||||||
|
(in millions)
|
|
Six months ended June 30, 2019
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||
|
Short-term borrowings 1
|
|
|
|
|
|
|
|
|
|
|||
|
Commercial paper
|
|
$
|
37
|
|
|
$
|
112
|
|
|
$
|
—
|
|
|
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
|
30
|
|
10
|
|
10
|
|
|||
|
Total “up to” amounts of taxable debt authorized through 2022
|
$
|
410
|
|
$
|
150
|
|
$
|
130
|
|
|
Remaining authorized amounts
|
$
|
305
|
|
$
|
125
|
|
$
|
110
|
|
|
(in millions)
|
Hawaiian Electric
|
Hawaii Electric Light
|
Maui Electric
|
||||||
|
Total “up to” amounts of common stock authorized to issue and sell through 2021
|
$
|
150.0
|
|
$
|
10.0
|
|
$
|
10.0
|
|
|
Supplemental increase authorized
|
280.0
|
|
100.0
|
|
100.0
|
|
|||
|
Total “up to” amounts of common stock authorized to issue and sell through 2022
|
430.0
|
|
110.0
|
|
110.0
|
|
|||
|
Common stock authorized and issued in 2017 and 2018
|
84.7
|
|
—
|
|
6.3
|
|
|||
|
Remaining authorized amounts
|
$
|
345.3
|
|
$
|
110
|
|
$
|
103.7
|
|
|
|
Six months ended June 30,
|
|
|
||||||||
|
(in thousands)
|
2019
|
|
2018
|
|
Change
|
||||||
|
Net cash provided by operating activities
|
$
|
100,816
|
|
|
$
|
69,836
|
|
|
$
|
30,980
|
|
|
Net cash used in investing activities
|
(197,386
|
)
|
|
(195,346
|
)
|
|
(2,040
|
)
|
|||
|
Net cash provided by financing activities
|
84,054
|
|
|
133,853
|
|
|
(49,799
|
)
|
|||
|
|
|
Three months ended June 30,
|
|
Increase
|
|
|
||||||||
|
(in millions)
|
|
2019
|
|
2018
|
|
(decrease)
|
|
Primary reason(s)
|
||||||
|
Interest income
|
|
$
|
66
|
|
|
$
|
63
|
|
|
$
|
3
|
|
|
The increase in interest income was primarily the result of an increase in the loan portfolio balances and yields, partly offset by a decrease in balances and yields on the investment portfolio. ASB’s average loan portfolio balance for the three months ended June 30, 2019 increased by $168 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 $57 million, $90 million, $37 million and $17 million, respectively. The yield on loans benefited from the rising interest rate environment over the past year, which resulted in an increase in yields from the total loan portfolio of 17 basis points. ASB’s average investment securities portfolio balance for the three months ended June 30, 2019 decreased by 24 million compared to the same period in 2018 as ASB used the investment portfolio repayments to fund the growth in the loan portfolio. The yield on the investment securities portfolio decreased by 20 basis points due to an increase in the amortization of premiums in the investment portfolio. The average balance of interest-earning deposits decreased by $44 million for the three months ended June 30, 2019 compared to the same period in 2018 as excess liquidity was also used to fund the loan portfolio growth.
|
|
Noninterest income
|
|
16
|
|
|
14
|
|
|
2
|
|
|
Noninterest income increased for the three months ended June 30, 2019 compared to noninterest income for the three months ended June 30, 2018 primarily due to proceeds from bank owned life insurance policy payouts.
|
|||
|
Revenues
|
|
82
|
|
|
77
|
|
|
5
|
|
|
The increase in revenues for the three months ended June 30, 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 June 30, 2019 compared to the same period in 2018 was due to an increase in deposit balances and interest rates. Average deposit balances for the three months ended June 30, 2019 increased by $144 million compared to the same period in 2018 due to an increase in core deposits and time certificates of $96 million and $48 million, respectively. Average cost of deposits for the three months ended June 30, 2019 was 28 basis points, or 6 basis points above the cost of deposits for the same period in 2018. Average other borrowings for the three months ended June 30, 2019 decreased by $16 million compared to the same period in 2018 due to a decrease in FHLB advances. The interest-bearing liability rate for the three months ended June 30, 2019 increased by 8 basis points compared to the same period in 2018.
|
|||
|
Provision for loan losses
|
|
8
|
|
|
3
|
|
|
5
|
|
|
The provision for loan losses increased for the three months ended June 30, 2019 compared to the provision for loan losses for the three months ended June 30, 2018. The provision for loan losses for 2019 was primarily for additional loan loss reserves for the consumer loan portfolio, increased reserves for an impaired commercial loan and growth in the loan portfolio, partly offset by the release of loan loss reserves for the payoff of a commercial real estate loan and the completion of a commercial real estate construction project. The provision for loan losses for 2018 was primarily for additional loan loss reserves for the consumer and credit-scored loan portfolios and growth in the loan portfolio, partly offset by the release of reserves for improved credit quality of the commercial, commercial real estate and home equity line of credit loan portfolios. Delinquency rates have decreased from 0.54% at June 30, 2018 to 0.51% at June 30, 2019. The annualized net charge-off ratio for the three months ended June 30, 2019 was 0.29% compared to an annualized net charge-off ratio of 0.32% for the same period in 2018. The annualized net charge-off for 2019 benefited from recoveries in the commercial loan portfolio.
|
|||
|
Noninterest expense
|
|
48
|
|
|
44
|
|
|
4
|
|
|
Noninterest expense increased for the three months ended June 30, 2019 compared to the same period in 2018 primarily due to higher compensation and employee benefits expenses, and higher occupancy expenses. The higher compensation and employee benefits expenses were due to an increase in commissions incentives, an increase in the minimum pay rate for employees and annual merit increases. Occupancy expenses in 2019 included depreciation and occupancy costs related to the new campus while still including the costs of properties being vacated.
|
|||
|
Expenses
|
|
61
|
|
|
50
|
|
|
11
|
|
|
The increase in expenses for the three months ended June 30, 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
|
|
21
|
|
|
27
|
|
|
(6
|
)
|
|
The decrease in operating income for the three months ended June 30, 2019 compared to the same period in 2018 was primarily due to higher provision for loan losses, higher interest expense, and higher noninterest expenses partly offset by higher interest and noninterest income.
|
|||
|
Net income
|
|
17
|
|
|
21
|
|
|
(4
|
)
|
|
The decrease in net income for the three months ended June 30, 2019 compared to the same period in 2018 was primarily due to lower operating income.
|
|||
|
|
|
Six months ended June 30
|
|
Increase
|
|
|
||||||||
|
(in millions)
|
|
2019
|
|
2018
|
|
(decrease)
|
|
Primary reason(s)
|
||||||
|
Interest income
|
|
$
|
135
|
|
|
$
|
125
|
|
|
$
|
10
|
|
|
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 six months ended June 30, 2019 increased by $16 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 7 basis points as new investment purchase yields were higher due to the rising interest rate environment. ASB’s average loan portfolio balance for the six months ended June 30, 2019 increased by $163 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 $44 million, $80 million, $38 million and $22 million, respectively. The yield on loans benefited from the rising interest rate environment during the past year, which resulted in an increase in yields from the total loan portfolio of 22 basis points. The average interest-earning deposits balance for the six months ended June 30, 2019 decreased $45 million compared to the same period in 2018.
|
|
Noninterest income
|
|
30
|
|
|
27
|
|
|
3
|
|
|
Noninterest income increased for the six months ended June 30, 2019 compared to noninterest income for the six months ended June 30, 2018 primarily due to higher bank owned life insurance policy payouts.
|
|||
|
Revenues
|
|
165
|
|
|
152
|
|
|
13
|
|
|
The increase in revenues for the six months ended June 30, 2019 compared to the same period in 2018 was due higher interest and noninterest income.
|
|||
|
Interest expense
|
|
9
|
|
|
7
|
|
|
2
|
|
|
The increase in interest expense for the six months ended June 30, 2019 compared to the same period in 2018 was due to higher deposit balances and interest rates. Average deposit balances for the six months ended June 30, 2019 increased by $212 million compared to the same period in 2018 due to an increase in core deposits and time certificates of $169 million and $43 million, respectively. Average cost of deposits for the six months ended June 30, 2019 was 28 basis points, or 7 basis points above the cost of deposits for the same period in 2018. Average other borrowings for the six months ended June 30, 2019 decreased by $44 million compared to the same period in 2018 primarily due to a decrease in repurchase agreements. The interest-bearing liability rate for the six months ended June 30, 2019 increased by 10 basis points compared to the same period in 2018.
|
|||
|
Provision for loan losses
|
|
15
|
|
|
6
|
|
|
9
|
|
|
The provision for loan losses increased for the six months ended June 30, 2019 compared to the provision for loan losses for the six months ended June 30, 2018. The provision for loan losses for 2019 was due to additional loss reserves for the consumer loan portfolio, increased reserves for an impaired commercial loan and a CRE loan that was downgraded to substandard. The provision for loan losses for 2018 was primarily due to additional loan loss reserves for the consumer loan portfolio, partly offset by the release of reserves for improved credit quality of the commercial and commercial real estate loan portfolios. Delinquency rates have decreased from 0.54% at June 30, 2018 to 0.51% at June 30, 2019. The annualized net charge-off ratio for the six months ended June 30, 2019 was 0.34% compared to an annualized net charge-off ratio of 0.30% for the same period in 2018. The increase was due to higher net charge-offs in the consumer loan portfolio with risk-based pricing.
|
|||
|
Noninterest expense
|
|
94
|
|
|
87
|
|
|
7
|
|
|
Noninterest expense increased for the six months ended June 30, 2019 compared to the same period in 2018 primarily due to higher compensation and employee benefits expenses, and higher occupancy expenses. The increase in compensation and employee benefits was due to an increase in commissions paid to production-related employees, an increase in the minimum pay rate for employees and annual merit increases. Occupancy expenses in 2019 included depreciation and occupancy costs for the new campus while still including the costs of properties being vacated.
|
|||
|
Expenses
|
|
118
|
|
|
100
|
|
|
18
|
|
|
The increase in expenses for the six months ended June 30, 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
|
|
47
|
|
|
52
|
|
|
(5
|
)
|
|
The decrease in operating income for the six months ended June 30, 2019 compared to the same period in 2018 was primarily due to higher provision for loan losses, higher interest expense, and higher noninterest expenses, partly offset by higher interest and noninterest income.
|
|||
|
Net income
|
|
38
|
|
|
40
|
|
|
(2
|
)
|
|
The decrease in net income for the six months ended June 30, 2019 compared to the same period in 2018 was primarily due to lower operating income.
|
|||
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||
|
(%)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
Return on average assets
|
|
0.96
|
|
|
1.20
|
|
|
1.07
|
|
|
1.16
|
|
|
Return on average equity
|
|
10.46
|
|
|
13.56
|
|
|
11.76
|
|
|
13.07
|
|
|
Net interest margin
|
|
3.82
|
|
|
3.76
|
|
|
3.90
|
|
|
3.76
|
|
|
|
|
Three months ended June 30,
|
||||||||||||||||||||
|
|
|
2019
|
|
2018
|
||||||||||||||||||
|
(dollars in thousands)
|
|
Average
balance |
|
Interest
income/ expense |
|
Yield/
rate (%) |
|
Average
balance |
|
Interest
income/ expense |
|
Yield/
rate (%) |
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest-earning deposits
|
|
$
|
9,212
|
|
|
$
|
55
|
|
|
2.36
|
|
|
$
|
53,677
|
|
|
$
|
240
|
|
|
1.77
|
|
|
FHLB stock
|
|
9,785
|
|
|
89
|
|
|
3.62
|
|
|
10,245
|
|
|
77
|
|
|
2.99
|
|
||||
|
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Taxable
|
|
1,449,233
|
|
|
7,105
|
|
|
1.96
|
|
|
1,485,780
|
|
|
8,182
|
|
|
2.20
|
|
||||
|
Non-taxable
|
|
28,096
|
|
|
362
|
|
|
5.09
|
|
|
15,427
|
|
|
162
|
|
|
4.16
|
|
||||
|
Total investment securities
|
|
1,477,329
|
|
|
7,467
|
|
|
2.02
|
|
|
1,501,207
|
|
|
8,344
|
|
|
2.22
|
|
||||
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Residential 1-4 family
|
|
2,177,030
|
|
|
22,480
|
|
|
4.13
|
|
|
2,119,594
|
|
|
21,581
|
|
|
4.07
|
|
||||
|
Commercial real estate
|
|
850,037
|
|
|
10,113
|
|
|
4.72
|
|
|
879,748
|
|
|
9,959
|
|
|
4.49
|
|
||||
|
Home equity line of credit
|
|
1,022,479
|
|
|
9,841
|
|
|
3.86
|
|
|
932,828
|
|
|
8,354
|
|
|
3.59
|
|
||||
|
Residential land
|
|
13,816
|
|
|
172
|
|
|
4.98
|
|
|
16,525
|
|
|
223
|
|
|
5.41
|
|
||||
|
Commercial
|
|
609,285
|
|
|
7,022
|
|
|
4.60
|
|
|
592,780
|
|
|
6,814
|
|
|
4.59
|
|
||||
|
Consumer
|
|
270,914
|
|
|
9,008
|
|
|
13.34
|
|
|
234,178
|
|
|
7,702
|
|
|
13.19
|
|
||||
|
Total loans 1,2
|
|
4,943,561
|
|
|
58,636
|
|
|
4.74
|
|
|
4,775,653
|
|
|
54,633
|
|
|
4.57
|
|
||||
|
Total interest-earning assets 3
|
|
6,439,887
|
|
|
66,247
|
|
|
4.11
|
|
|
6,340,782
|
|
|
63,294
|
|
|
3.99
|
|
||||
|
Allowance for loan losses
|
|
(55,068
|
)
|
|
|
|
|
|
|
|
(54,191
|
)
|
|
|
|
|
|
|
||||
|
Noninterest-earning assets
|
|
683,179
|
|
|
|
|
|
|
|
|
590,493
|
|
|
|
|
|
|
|
||||
|
Total assets
|
|
$
|
7,067,998
|
|
|
|
|
|
|
|
|
$
|
6,877,084
|
|
|
|
|
|
|
|
||
|
Liabilities and shareholder’s equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Savings
|
|
$
|
2,333,175
|
|
|
$
|
486
|
|
|
0.08
|
|
|
$
|
2,343,928
|
|
|
$
|
411
|
|
|
0.07
|
|
|
Interest-bearing checking
|
|
1,040,865
|
|
|
266
|
|
|
0.10
|
|
|
1,030,309
|
|
|
208
|
|
|
0.08
|
|
||||
|
Money market
|
|
146,726
|
|
|
255
|
|
|
0.69
|
|
|
125,961
|
|
|
73
|
|
|
0.23
|
|
||||
|
Time certificates
|
|
814,518
|
|
|
3,280
|
|
|
1.62
|
|
|
766,148
|
|
|
2,592
|
|
|
1.36
|
|
||||
|
Total interest-bearing deposits
|
|
4,335,284
|
|
|
4,287
|
|
|
0.40
|
|
|
4,266,346
|
|
|
3,284
|
|
|
0.31
|
|
||||
|
Advances from Federal Home Loan Bank
|
|
33,791
|
|
|
222
|
|
|
2.63
|
|
|
52,176
|
|
|
254
|
|
|
1.95
|
|
||||
|
Securities sold under agreements to repurchase
|
|
77,693
|
|
|
189
|
|
|
0.98
|
|
|
75,687
|
|
|
139
|
|
|
0.74
|
|
||||
|
Total interest-bearing liabilities
|
|
4,446,768
|
|
|
4,698
|
|
|
0.42
|
|
|
4,394,209
|
|
|
3,677
|
|
|
0.34
|
|
||||
|
Noninterest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Deposits
|
|
1,847,228
|
|
|
|
|
|
|
|
|
1,772,173
|
|
|
|
|
|
|
|
||||
|
Other
|
|
123,371
|
|
|
|
|
|
|
|
|
103,991
|
|
|
|
|
|
|
|
||||
|
Shareholder’s equity
|
|
650,631
|
|
|
|
|
|
|
|
|
606,711
|
|
|
|
|
|
|
|
||||
|
Total liabilities and shareholder’s equity
|
|
$
|
7,067,998
|
|
|
|
|
|
|
|
|
$
|
6,877,084
|
|
|
|
|
|
|
|
||
|
Net interest income
|
|
|
|
$
|
61,549
|
|
|
|
|
|
|
|
|
$
|
59,617
|
|
|
|
|
|||
|
Net interest margin (%) 4
|
|
|
|
|
|
|
|
3.82
|
|
|
|
|
|
|
|
|
3.76
|
|
||||
|
|
|
Six months ended June 30
|
||||||||||||||||||||
|
|
|
2019
|
|
2018
|
||||||||||||||||||
|
(dollars in thousands)
|
|
Average
balance |
|
Interest
income/
expense
|
|
Yield/
rate (%) |
|
Average
balance |
|
Interest
income/
expense |
|
Yield/
rate (%) |
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest-earning deposits
|
|
$
|
9,782
|
|
|
$
|
117
|
|
|
2.39
|
|
|
$
|
55,078
|
|
|
$
|
456
|
|
|
1.65
|
|
|
FHLB stock
|
|
10,064
|
|
|
185
|
|
|
3.69
|
|
|
10,009
|
|
|
154
|
|
|
3.09
|
|
||||
|
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Taxable
|
|
1,481,400
|
|
|
17,315
|
|
|
2.34
|
|
|
1,477,468
|
|
|
16,973
|
|
|
2.30
|
|
||||
|
Non-taxable
|
|
27,037
|
|
|
691
|
|
|
5.08
|
|
|
15,427
|
|
|
312
|
|
|
4.02
|
|
||||
|
Total investment securities
|
|
1,508,437
|
|
|
18,006
|
|
|
2.39
|
|
|
1,492,895
|
|
|
17,285
|
|
|
2.32
|
|
||||
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Residential 1-4 family
|
|
2,168,703
|
|
|
44,730
|
|
|
4.13
|
|
|
2,124,429
|
|
|
43,428
|
|
|
4.09
|
|
||||
|
Commercial real estate
|
|
847,689
|
|
|
20,286
|
|
|
4.77
|
|
|
866,689
|
|
|
19,210
|
|
|
4.42
|
|
||||
|
Home equity line of credit
|
|
1,007,338
|
|
|
19,334
|
|
|
3.87
|
|
|
926,951
|
|
|
16,342
|
|
|
3.56
|
|
||||
|
Residential land
|
|
13,311
|
|
|
355
|
|
|
5.33
|
|
|
16,485
|
|
|
446
|
|
|
5.41
|
|
||||
|
Commercial
|
|
599,054
|
|
|
13,882
|
|
|
4.65
|
|
|
576,743
|
|
|
12,993
|
|
|
4.53
|
|
||||
|
Consumer
|
|
270,569
|
|
|
17,909
|
|
|
13.35
|
|
|
232,519
|
|
|
15,014
|
|
|
13.02
|
|
||||
|
Total loans 1,2
|
|
4,906,664
|
|
|
116,496
|
|
|
4.76
|
|
|
4,743,816
|
|
|
107,433
|
|
|
4.54
|
|
||||
|
Total interest-earning assets 3
|
|
6,434,947
|
|
|
134,804
|
|
|
4.20
|
|
|
6,301,798
|
|
|
125,328
|
|
|
3.99
|
|
||||
|
Allowance for loan losses
|
|
(53,568
|
)
|
|
|
|
|
|
|
|
(53,881
|
)
|
|
|
|
|
|
|
||||
|
Noninterest-earning assets
|
|
682,718
|
|
|
|
|
|
|
|
|
582,346
|
|
|
|
|
|
|
|
||||
|
Total assets
|
|
$
|
7,064,097
|
|
|
|
|
|
|
|
|
$
|
6,830,263
|
|
|
|
|
|
|
|
||
|
Liabilities and shareholder’s equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Savings
|
|
$
|
2,334,106
|
|
|
$
|
888
|
|
|
0.08
|
|
|
$
|
2,327,596
|
|
|
$
|
812
|
|
|
0.07
|
|
|
Interest-bearing checking
|
|
1,041,387
|
|
|
530
|
|
|
0.10
|
|
|
982,096
|
|
|
282
|
|
|
0.06
|
|
||||
|
Money market
|
|
148,577
|
|
|
496
|
|
|
0.67
|
|
|
119,830
|
|
|
99
|
|
|
0.17
|
|
||||
|
Time certificates
|
|
822,875
|
|
|
6,625
|
|
|
1.62
|
|
|
779,796
|
|
|
5,048
|
|
|
1.31
|
|
||||
|
Total interest-bearing deposits
|
|
4,346,945
|
|
|
8,539
|
|
|
0.40
|
|
|
4,209,318
|
|
|
6,241
|
|
|
0.30
|
|
||||
|
Advances from Federal Home Loan Bank
|
|
43,983
|
|
|
575
|
|
|
2.64
|
|
|
51,647
|
|
|
499
|
|
|
1.95
|
|
||||
|
Securities sold under agreements to repurchase
|
|
78,232
|
|
|
364
|
|
|
0.94
|
|
|
114,997
|
|
|
390
|
|
|
0.68
|
|
||||
|
Total interest-bearing liabilities
|
|
4,469,160
|
|
|
9,478
|
|
|
0.43
|
|
|
4,375,962
|
|
|
7,130
|
|
|
0.33
|
|
||||
|
Noninterest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Deposits
|
|
1,822,574
|
|
|
|
|
|
|
|
|
1,748,695
|
|
|
|
|
|
|
|
||||
|
Other
|
|
128,529
|
|
|
|
|
|
|
|
|
100,892
|
|
|
|
|
|
|
|
||||
|
Shareholder’s equity
|
|
643,834
|
|
|
|
|
|
|
|
|
604,714
|
|
|
|
|
|
|
|
||||
|
Total liabilities and shareholder’s equity
|
|
$
|
7,064,097
|
|
|
|
|
|
|
|
|
$
|
6,830,263
|
|
|
|
|
|
|
|
||
|
Net interest income
|
|
|
|
|
$
|
125,326
|
|
|
|
|
|
|
|
|
$
|
118,198
|
|
|
|
|
||
|
Net interest margin (%) 4
|
|
|
|
|
|
|
|
3.90
|
|
|
|
|
|
|
|
|
3.76
|
|
||||
|
2
|
Includes recognition of net deferred loan fees of $0.1 million for the three months ended June 30, 2019 and 2018, and $0.2 million and $0.1 million for the six months ended June 30, 2019 and 2018, respectively, together with interest accrued prior to suspension of interest accrual on nonaccrual loans.
|
|
3
|
For the three months ended and for the six months ended June 30, 2019 and 2018, the taxable-equivalent basis adjustments made to the table above were not material.
|
|
4
|
Defined as net interest income, on a fully taxable equivalent basis, as a percentage of average total interest-earning assets.
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
Outstanding balance of home equity loans (in thousands)
|
|
$
|
1,036,985
|
|
|
$
|
978,237
|
|
|
Percent of portfolio in first lien position
|
|
50.9
|
%
|
|
49.2
|
%
|
||
|
Annualized net charge-off ratio
|
|
—
|
%
|
|
0.01
|
%
|
||
|
Delinquency ratio
|
|
0.39
|
%
|
|
0.46
|
%
|
||
|
|
|
|
|
|
|
End of draw period – interest only
|
|
Current
|
||||||||||||||||
|
June 30, 2019
|
|
Total
|
|
Interest only
|
|
2019-2020
|
|
2021-2023
|
|
Thereafter
|
|
amortizing
|
||||||||||||
|
Outstanding balance (in thousands)
|
|
$
|
1,036,985
|
|
|
$
|
768,209
|
|
|
$
|
20,877
|
|
|
$
|
116,616
|
|
|
$
|
630,716
|
|
|
$
|
268,776
|
|
|
% of total
|
|
100
|
%
|
|
74
|
%
|
|
2
|
%
|
|
11
|
%
|
|
61
|
%
|
|
26
|
%
|
||||||
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||
|
(dollars in thousands)
|
|
Balance
|
|
% of total
|
|
Balance
|
|
% of total
|
||||||
|
U.S. Treasury and federal agency obligations
|
|
$
|
131,206
|
|
|
9
|
%
|
|
$
|
154,349
|
|
|
10
|
%
|
|
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
|
1,224,516
|
|
|
85
|
|
|
1,303,291
|
|
|
85
|
|
||
|
Corporate bonds
|
|
51,151
|
|
|
4
|
|
|
49,132
|
|
|
3
|
|
||
|
Mortgage revenue bonds
|
|
28,166
|
|
|
2
|
|
|
23,636
|
|
|
2
|
|
||
|
Total investment securities
|
|
$
|
1,435,039
|
|
|
100
|
%
|
|
$
|
1,530,408
|
|
|
100
|
%
|
|
|
|
Six months ended June 30
|
|
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
|
|
14,558
|
|
|
6,304
|
|
|
14,745
|
|
|||
|
Less: net charge-offs
|
|
8,252
|
|
|
7,138
|
|
|
16,263
|
|
|||
|
Allowance for loan losses, end of period
|
|
$
|
58,425
|
|
|
$
|
52,803
|
|
|
$
|
52,119
|
|
|
Ratio of net charge-offs during the period to average loans outstanding (annualized)
|
|
0.34
|
%
|
|
0.30
|
%
|
|
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)
|
|
June 30, 2019
|
|
December 31, 2018
|
|
% change
|
|||||
|
Total assets
|
|
$
|
7,164
|
|
|
$
|
7,028
|
|
|
2
|
|
|
Investment securities
|
|
1,435
|
|
|
1,530
|
|
|
(6
|
)
|
||
|
Loans held for investment, net
|
|
4,950
|
|
|
4,791
|
|
|
3
|
|
||
|
Deposit liabilities
|
|
6,257
|
|
|
6,159
|
|
|
2
|
|
||
|
Other bank borrowings
|
|
111
|
|
|
110
|
|
|
1
|
|
||
|
Change in interest rates
|
|
Change in NII
(gradual change in interest rates)
|
|
Change in EVE
(instantaneous change in interest rates)
|
||||||||
|
(basis points)
|
|
June 30, 2019
|
|
December 31, 2018
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
+300
|
|
3.3
|
%
|
|
2.5
|
%
|
|
14.3
|
%
|
|
10.0
|
%
|
|
+200
|
|
2.6
|
|
|
1.9
|
|
|
11.5
|
|
|
8.1
|
|
|
+100
|
|
1.5
|
|
|
1.1
|
|
|
7.3
|
|
|
5.1
|
|
|
-100
|
|
(2.4
|
)
|
|
(2.3
|
)
|
|
(13.2
|
)
|
|
(11.0
|
)
|
|
Period*
|
|
Total Number of Shares Purchased **
|
|
Average
Price Paid
per Share **
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
|
|
April 1 to 30, 2019
|
|
35,070
|
|
$41.27
|
|
—
|
|
NA
|
|
May 1 to 31, 2019
|
|
20,495
|
|
$41.55
|
|
—
|
|
NA
|
|
June 1 to 30, 2019
|
|
199,984
|
|
$42.92
|
|
—
|
|
NA
|
|
|
Amendment 2014-1 to Hawaiian Electric Industries Retirement Savings Plan, effective as of January 1, 2015 (incorporated by reference to Exhibit 4.4 to Registration Statement filed on June 27, 2019 on Form S-8 Registration no. 333-232360)
|
|
|
|
|
|
|
|
Amendment 2015-1 to Hawaiian Electric Industries Retirement Savings Plan, effective as of February 1, 2015 (incorporated by reference to Exhibit 4.5 to Registration Statement filed on June 27, 2019 on Form S-8 Registration no. 333-232360)
|
|
|
|
|
|
|
|
Amendment 2015-2 to Hawaiian Electric Industries Retirement Savings Plan, effective as of February 1, 2015 (incorporated by reference to Exhibit 4.6 to Registration Statement filed on June 27, 2019 on Form S-8 Registration no. 333-232360)
|
|
|
|
|
|
|
|
Amendment 2019-1 to Hawaiian Electric Industries Retirement Savings Plan, effective as of May 6, 2019 (incorporated by reference to Exhibit 4.7 to Registration Statement filed on June 27, 2019 on Form S-8 Registration no. 333-232360)
|
|
|
|
|
|
|
|
Certification Pursuant to Rule 13a-14 promulgated under the Securities Exchange Act of 1934 of Constance H. Lau (HEI Chief Executive Officer)
|
|
|
|
|
|
|
|
Certification Pursuant to Rule 13a-14 promulgated under the Securities Exchange Act of 1934 of Gregory C. Hazelton (HEI Chief Financial Officer)
|
|
|
|
|
|
|
|
HEI Certification Pursuant to 18 U.S.C. Section 1350
|
|
|
|
|
|
|
HEI Exhibit 101.INS
|
|
XBRL Instance Document - the instance document does not appear on the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
|
|
|
|
|
HEI Exhibit 101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
HEI Exhibit 101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
HEI Exhibit 101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
HEI Exhibit 101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
HEI Exhibit 101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
HEI Exhibit 104
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
|
|
|
|
|
|
|
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: August 2, 2019
|
|
Date: August 2, 2019
|
||
|
Date: August 2, 2019
|
|
|
|
/s/ Constance H. Lau
|
|
|
Constance H. Lau
|
|
|
President and Chief Executive Officer
|
|
Date: August 2, 2019
|
|
|
|
/s/ Gregory C. Hazelton
|
|
|
Gregory C. Hazelton
|
|
|
Executive Vice President, Chief Financial Officer
|
|
|
and Treasurer
|
|
Date: August 2, 2019
|
|
|
|
/s/ Alan M. Oshima
|
|
|
Alan M. Oshima
|
|
|
President and Chief Executive Officer
|
|
Date: August 2, 2019
|
|
|
|
/s/ Tayne S. Y. Sekimura
|
|
|
Tayne S. Y. Sekimura
|
|
|
Senior Vice President and Chief Financial Officer
|
|
Date: August 2, 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: August 2, 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
|