Exact Name of Registrant | Commission | I.R.S. Employer | ||||||
as Specified in Its Charter | File Number | Identification No. | ||||||
Hawaiian Electric Industries, Inc. | 1-8503 | 99-0208097 | ||||||
Hawaiian Electric Company, Inc. | 1-4955 | 99-0040500 |
Registrant | Title of each class |
Trading Symbol
|
Name of each exchange
on which registered
|
|||||||||||||||||
Hawaiian Electric Industries, Inc. | Common Stock, Without Par Value | HE | New York Stock Exchange |
Registrant | Title of each class | |||||||
Hawaiian Electric Industries, Inc. | None | |||||||
Hawaiian Electric Company, Inc. | Cumulative Preferred Stock | |||||||
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. | Yes | ☒ | No | ☐ | Hawaiian Electric Company, Inc. | Yes | ☒ | No | ☐ |
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. | ☐ |
Hawaiian Electric Industries, Inc. | Yes | ☐ | No | ☒ | Hawaiian Electric Company, Inc. | Yes | ☐ | No | ☒ | |||||||||||||||||||||||
Aggregate market value
of the voting and non- voting common equity held by non-affiliates of the registrants as of |
Number of shares of common stock
outstanding of the registrants as of
|
|||||||||||||||||||
June 30, 2020 | June 30, 2020 | February 12, 2021 | ||||||||||||||||||
Hawaiian Electric Industries, Inc. (Without Par Value) | $3,937,071,331 | 109,181,124 | 109,181,124 | |||||||||||||||||
Hawaiian Electric Company, Inc.
($6-2/3 Par Value) |
None | 17,048,783 | 17,324,376 | |||||||||||||||||
This combined Form 10-K represents separate filings by Hawaiian Electric Industries, Inc. and Hawaiian Electric Company, Inc. Information contained herein relating to any individual registrant is filed by each registrant on its own behalf. Hawaiian Electric makes no representations as to any information not relating to it or its subsidiaries. | ||
Page | ||||||||
Glossary of Terms
|
||||||||
Cautionary Note Regarding Forward-Looking Statements
|
||||||||
PART I
|
||||||||
Item 1.
|
Business
|
|||||||
Item 1A.
|
Risk Factors
|
|||||||
Item 1B.
|
Unresolved Staff Comments
|
|||||||
Item 2.
|
Properties
|
|||||||
Item 3.
|
Legal Proceedings
|
|||||||
Item 4.
|
Mine Safety Disclosures
|
|||||||
Information About Our Executive Officers (HEI) | ||||||||
PART II
|
||||||||
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
|||||||
Item 6.
|
Selected Financial Data
|
|||||||
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|||||||
Item 7A.
|
Quantitative and Qualitative Disclosures about Market Risk
|
|||||||
Item 8.
|
Financial Statements and Supplementary Data
|
|||||||
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
|||||||
Item 9A.
|
Controls and Procedures
|
|||||||
Item 9B.
|
Other Information
|
|||||||
PART III
|
||||||||
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
|||||||
Item 11.
|
Executive Compensation
|
|||||||
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
|||||||
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
|||||||
Item 14.
|
Principal Accounting Fees and Services
|
|||||||
PART IV
|
||||||||
Item 15.
|
Exhibits and Financial Statement Schedules
|
|||||||
Item 16. | Form 10-K Summary | |||||||
Signatures
|
Terms | Definitions | |||||||
ABO | Accumulated benefit obligation | |||||||
ACL |
Allowance for credit losses as determined under the new credit loss standard (ASU No. 2016-13), which requires the measurement of lifetime expected credit losses for financial assets held at the reporting date (based on historical experience, current conditions and reasonable and supportable forecasts)
|
|||||||
AES Hawaii | AES Hawaii, Inc. | |||||||
AFS | Available-for-sale | |||||||
AFUDC | Allowance for funds used during construction | |||||||
AOCI | Accumulated other comprehensive income (loss) | |||||||
APBO | Accumulated postretirement benefit obligation | |||||||
ARO |
Asset retirement obligations
|
|||||||
ASB |
American Savings Bank, F.S.B., a wholly-owned subsidiary of ASB Hawaii Inc.
|
|||||||
ASB Hawaii | ASB Hawaii, 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 | |||||||
Btu | British thermal unit | |||||||
CARES Act | The Coronavirus Aid, Relief, and Economic Security Act enacted March 27, 2020 | |||||||
CBRE | Community-based renewable energy | |||||||
CERCLA | Comprehensive Environmental Response, Compensation and Liability Act | |||||||
Company |
When used in Hawaiian Electric Industries, Inc. sections and in the Notes to Consolidated Financial Statements, “Company” refers to 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), Mauo, LLC, and Ka‘ie‘ie Waho Company, LLC; and The Old Oahu Tug Service, Inc. (formerly Hawaiian Tug & Barge Corp.).
When used in Hawaiian Electric Company, Inc. sections, “Company” refers to Hawaiian Electric Company, Inc. and its direct subsidiaries. |
|||||||
Consolidated Financial Statements |
HEI’s or Hawaiian Electric’s Consolidated Financial Statements, including notes, in Item 8 of this Form 10-K
|
|||||||
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 | |||||||
DBF | State of Hawaii Department of Budget and Finance | |||||||
DER | Distributed energy resources | |||||||
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 | |||||||
DOH | State of Hawaii Department of Health | |||||||
DRIP | HEI Dividend Reinvestment and Stock Purchase Plan | |||||||
ECAC | Energy cost adjustment clause | |||||||
ECRC | Energy cost recovery clause | |||||||
EIP | 2010 Executive Incentive Plan, as amended | |||||||
EPA | Environmental Protection Agency - federal | |||||||
EPS | Earnings per share | |||||||
ERISA | Employee Retirement Income Security Act of 1974, as amended | |||||||
ERL | Environmental Response Law of the State of Hawaii | |||||||
ERP/EAM | Enterprise Resource Planning/Enterprise Asset Management | |||||||
ESG | Environmental, Social & Governance | |||||||
Exchange Act | Securities Exchange Act of 1934 | |||||||
FASB | Financial Accounting Standards Board | |||||||
FDIC | Federal Deposit Insurance Corporation | |||||||
federal | U.S. Government | |||||||
FERC | Federal Energy Regulatory Commission | |||||||
FHLB | Federal Home Loan Bank |
Terms | Definitions | |||||||
FHLMC | Federal Home Loan Mortgage Corporation | |||||||
FICO | Fair Isaac Corporation | |||||||
Fitch | Fitch Ratings, Inc. | |||||||
FNMA | Federal National Mortgage Association | |||||||
FRB | Federal Reserve Board | |||||||
GAAP | Accounting principles generally accepted in the United States of America | |||||||
GHG | Greenhouse gas | |||||||
GNMA | Government National Mortgage Association | |||||||
Gramm Act | Gramm-Leach-Bliley Act of 1999 | |||||||
Hamakua Energy | Hamakua Energy, LLC, an indirect subsidiary of HEI | |||||||
Hawaii Electric Light |
Hawaii Electric Light Company, Inc., an electric utility subsidiary of Hawaiian Electric Company, Inc.
|
|||||||
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 and Renewable Hawaii, Inc. Uluwehiokama Biofuels Corp. was dissolved effective as of July 14, 2020 | |||||||
Hawaiian Electric’s MD&A |
Hawaiian Electric Company, Inc.’s Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Form 10-K
|
|||||||
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.)
|
|||||||
HEI’s 2021 Proxy Statement | Selected sections of Proxy Statement for the 2020 Annual Meeting of Shareholders of Hawaiian Electric Industries, Inc. to be filed after the date of this Form 10-K and not later than 120 days after December 31, 2020, which are incorporated in this Form 10-K by reference | |||||||
HEI’s MD&A |
Hawaiian Electric Industries, Inc.’s Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Form 10-K
|
|||||||
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 | |||||||
HSFO | High sulfur fuel oil | |||||||
HTM | Held-to-maturity | |||||||
IPP | Independent power producer | |||||||
Ka’ie’ie Waho | Ka’ie’ie Waho Company, LLC, a subsidiary of Pacific Current | |||||||
Kalaeloa | Kalaeloa Partners, L.P. | |||||||
kW | Kilowatt/s (as applicable) | |||||||
kWh | Kilowatthour/s (as applicable) | |||||||
LSFO | Low sulfur fuel oil | |||||||
LTIP | Long-term incentive plan | |||||||
Maui Electric |
Maui Electric Company, Limited, an electric utility subsidiary of Hawaiian Electric Company, Inc.
|
|||||||
Mauo | Mauo, LLC, a subsidiary of Pacific Current | |||||||
MBtu | Million British thermal unit | |||||||
MD&A |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|||||||
Merger | As provided in the Merger Agreement (see below), merger of NEE Acquisition Sub II, Inc. with and into HEI, with HEI surviving, and then merger of HEI with and into NEE Acquisition Sub I, LLC, with NEE Acquisition Sub I, LLC surviving as a wholly owned subsidiary of NextEra Energy, Inc. | |||||||
Merger Agreement | Agreement and Plan of Merger by and among HEI, NextEra Energy, Inc., NEE Acquisition Sub II, Inc. and NEE Acquisition Sub I, LLC, dated December 3, 2014 and terminated July 16, 2016 | |||||||
Moody’s | Moody’s Investors Service’s | |||||||
MPIR | Major Project Interim Recovery | |||||||
MSR | Mortgage servicing right | |||||||
MW | Megawatt/s (as applicable) | |||||||
MWh | Megawatthour/s (as applicable) | |||||||
NA | Not applicable | |||||||
NEE | NextEra Energy, Inc. | |||||||
NII | Net interest income | |||||||
NPBC | Net periodic benefits costs |
Terms | Definitions | |||||||
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 | |||||||
OTS | Office of Thrift Supervision, Department of Treasury | |||||||
Pacific Current | Pacific Current, LLC, a wholly owned subsidiary of HEI and parent company of Hamakua Holdings, LLC, Mauo, LLC, and Ka‘ie‘ie Waho Company, LLC | |||||||
PBO | Projected benefit obligation | |||||||
PCB | Polychlorinated biphenyls | |||||||
PGV | Puna Geothermal Venture | |||||||
PIMs | Performance incentive mechanisms | |||||||
PPA | Power purchase agreement | |||||||
PPAC | Purchased power adjustment clause | |||||||
PUC | Public Utilities Commission of the State of Hawaii | |||||||
PURPA | Public Utility Regulatory Policies Act of 1978 | |||||||
PV | Photovoltaic | |||||||
QF | Qualifying Facility under the Public Utility Regulatory Policies Act of 1978 | |||||||
QTL | Qualified Thrift Lender | |||||||
RAM | Rate adjustment mechanism | |||||||
RBA | Revenue balancing account | |||||||
Registrant | Each of Hawaiian Electric Industries, Inc. and Hawaiian Electric Company, Inc. | |||||||
REIP | Renewable Energy Infrastructure Program | |||||||
RFP | Request for proposals | |||||||
RHI | Renewable Hawaii, Inc., a wholly-owned nonregulated subsidiary of Hawaiian Electric Company, Inc. | |||||||
ROACE | Return on average common equity | |||||||
RORB | Return on rate base | |||||||
RPS | Renewable portfolio standards | |||||||
S&P | Standard & Poor’s | |||||||
SEC | Securities and Exchange Commission | |||||||
See |
Means the referenced material is incorporated by reference (or means refer to the referenced section in this document or the referenced exhibit or other document)
|
|||||||
SLHCs | Savings & Loan Holding Companies | |||||||
Spin-Off | The previously planned distribution to HEI shareholders of all of the common stock of ASB Hawaii immediately prior to the Merger, which was terminated | |||||||
SPRBs | Special Purpose Revenue Bonds | |||||||
state | State of Hawaii | |||||||
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
|
|||||||
TOOTS |
The Old Oahu Tug Service, Inc., a wholly-owned subsidiary of Hawaiian Electric Industries, Inc.
|
|||||||
ULSD | Ultra low sulfur diesel | |||||||
Utilities |
Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited
|
|||||||
VIE | Variable interest entity |
Cautionary Note Regarding Forward-Looking Statements |
ITEM 1. | BUSINESS |
December 31 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
HEI (includes Pacific Current) | 49 | 50 | 46 | ||||||||||||||||||||||||||
Hawaiian Electric and its subsidiaries | 2,579 | 2,670 | 2,704 | ||||||||||||||||||||||||||
ASB | 1,074 | 1,126 | 1,148 | ||||||||||||||||||||||||||
3,702 | 3,846 | 3,898 |
HEI | Hawaiian Electric | ASB | |||||||||||||||||||||||||||||||||
Female |
Racially diverse1
|
Female |
Racially diverse1
|
Female |
Racially diverse1
|
||||||||||||||||||||||||||||||
Executives2
|
42.9 | % | 57.1 | % | 47.1 | % | 64.7 | % | 40.0 | % | 70.0 | % | |||||||||||||||||||||||
Leaders3
|
50.0 | % | 91.7 | % | 26.9 | % | 84.3 | % | 65.3 | % | 83.7 | % | |||||||||||||||||||||||
All workforce4
|
65.9 | % | 94.7 | % | 29.3 | % | 89.5 | % | 67.4 | % | 88.3 | % |
Racial composition | Diversity-All workforce | ||||||||||||||||||||||||||||
Hawaii1
|
HEI | Hawaiian Electric | ASB | ||||||||||||||||||||||||||
White | 21.5 | % | 11.4 | % | 10.5 | % | 11.7 | % | |||||||||||||||||||||
Asian | 38.1 | % | 70.5 | % | 52.4 | % | 57.2 | % | |||||||||||||||||||||
Black | 1.8 | % | 2.3 | % | 0.4 | % | 0.8 | % | |||||||||||||||||||||
Hispanic | 10.7 | % | 2.3 | % | 4.4 | % | 4.7 | % | |||||||||||||||||||||
Native Hawaiian or other Pacific Islander | 9.9 | % | 2.3 | % | 10.7 | % | 15.4 | % | |||||||||||||||||||||
American Indian or Alaska Native | 0.2 | % | 2.3 | % | 0.3 | % | 0.4 | % | |||||||||||||||||||||
Two or more races2
|
17.8 | % | 8.9 | % | 21.3 | % | 9.8 | % |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Customer accounts* | Electric sales revenues | Customer accounts* | Electric sales revenues | Customer accounts* | Electric sales revenues | |||||||||||||||||||||||||||||
Hawaiian Electric | 307,378 | $ | 1,592,463 | 306,368 | $ | 1,784,982 | 305,456 | $ | 1,789,527 | ||||||||||||||||||||||||||
Hawaii Electric Light | 87,357 | 329,195 | 86,576 | 360,019 | 85,758 | 371,713 | |||||||||||||||||||||||||||||
Maui Electric | 73,304 | 317,872 | 72,522 | 372,034 | 71,875 | 364,967 | |||||||||||||||||||||||||||||
468,039 | $ | 2,239,530 | 465,466 | $ | 2,517,035 | 463,089 | $ | 2,526,207 |
Years ended December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
kWh sales (millions) | |||||||||||||||||||||||||||||
Residential | 2,525.4 | 2,439.3 | 2,410.8 | 2,334.5 | 2,332.7 | ||||||||||||||||||||||||
Commercial | 2,456.0 | 2,793.0 | 2,810.8 | 2,867.9 | 2,911.5 | ||||||||||||||||||||||||
Large light and power | 3,118.0 | 3,467.2 | 3,425.1 | 3,443.3 | 3,555.1 | ||||||||||||||||||||||||
Other | 20.8 | 40.5 | 42.1 | 44.7 | 46.0 | ||||||||||||||||||||||||
8,120.2 | 8,740.0 | 8,688.8 | 8,690.4 | 8,845.3 | |||||||||||||||||||||||||
kWh net generated and purchased (millions) | |||||||||||||||||||||||||||||
Net generated | 4,629.2 | 4,972.7 | 4,966.4 | 4,888.4 | 4,940.4 | ||||||||||||||||||||||||
Purchased | 3,896.2 | 4,168.6 | 4,139.3 | 4,247.1 | 4,349.1 | ||||||||||||||||||||||||
8,525.4 | 9,141.3 | 9,105.7 | 9,135.5 | 9,289.5 | |||||||||||||||||||||||||
RPS (%) | 34.5 | 28.4 | 26.7 | 26.8 | 25.8 | ||||||||||||||||||||||||
Losses and system uses (%) | 4.5 | 4.2 | 4.4 | 4.7 | 4.6 | ||||||||||||||||||||||||
Energy supply (December 31) | |||||||||||||||||||||||||||||
Net generating capability—MW | 1,737 | 1,737 | 1,739 | 1,673 | 1,669 | ||||||||||||||||||||||||
Firm and other purchased capability—MW1
|
517 | 517 | 517 | 551 | 551 | ||||||||||||||||||||||||
2,254 | 2,254 | 2,256 | 2,224 | 2,220 | |||||||||||||||||||||||||
Net peak demand—MW2
|
1,471 | 1,601 | 1,598 | 1,584 | 1,593 | ||||||||||||||||||||||||
Btu per net kWh generated | 10,834 | 10,860 | 10,826 | 10,812 | 10,710 | ||||||||||||||||||||||||
Average fuel oil cost per MBtu (cents) | 1,028.7 | 1,337.6 | 1,420.2 | 1,114.3 | 862.3 | ||||||||||||||||||||||||
Customer accounts (December 31) | |||||||||||||||||||||||||||||
Residential | 412,484 | 409,689 | 407,505 | 406,241 | 402,818 | ||||||||||||||||||||||||
Commercial | 54,035 | 54,233 | 54,075 | 53,732 | 55,089 | ||||||||||||||||||||||||
Large light and power | 694 | 700 | 696 | 656 | 670 | ||||||||||||||||||||||||
Other | 826 | 844 | 813 | 1,596 | 1,585 | ||||||||||||||||||||||||
468,039 | 465,466 | 463,089 | 462,225 | 460,162 | |||||||||||||||||||||||||
Electric revenues (thousands) | |||||||||||||||||||||||||||||
Residential | $ | 770,135 | $ | 791,398 | $ | 788,028 | $ | 691,857 | $ | 638,776 | |||||||||||||||||||
Commercial | 708,180 | 829,000 | 843,326 | 766,921 | 711,553 | ||||||||||||||||||||||||
Large light and power | 754,775 | 884,722 | 882,443 | 776,808 | 720,878 | ||||||||||||||||||||||||
Other | 6,440 | 11,915 | 12,410 | 12,009 | 11,306 | ||||||||||||||||||||||||
$ | 2,239,530 | $ | 2,517,035 | $ | 2,526,207 | $ | 2,247,595 | $ | 2,082,513 | ||||||||||||||||||||
Average revenue per kWh sold (cents) | 27.58 | 28.80 | 29.07 | 25.86 | 23.54 | ||||||||||||||||||||||||
Residential | 30.50 | 32.44 | 32.69 | 29.64 | 27.38 | ||||||||||||||||||||||||
Commercial | 28.83 | 29.68 | 30.00 | 26.74 | 24.44 | ||||||||||||||||||||||||
Large light and power | 24.21 | 25.52 | 25.76 | 22.56 | 20.28 | ||||||||||||||||||||||||
Other | 31.01 | 29.39 | 29.47 | 26.82 | 24.61 | ||||||||||||||||||||||||
Residential statistics | |||||||||||||||||||||||||||||
Average annual use per customer account (kWh) | 6,145 | 5,967 | 5,923 | 5,779 | 5,806 | ||||||||||||||||||||||||
Average annual revenue per customer account | $ | 1,874 | $ | 1,936 | $ | 1,936 | $ | 1,713 | $ | 1,590 | |||||||||||||||||||
Average number of customer accounts | 410,973 | 408,768 | 407,044 | 403,983 | 401,796 |
Hawaiian Electric | Hawaii Electric Light | Maui Electric | |||||||||||||||||||||||||||||||||
Island of
Oahu |
Island of
Hawaii |
Island of
Maui |
Island of
Lanai |
Island of
Molokai |
Total | ||||||||||||||||||||||||||||||
Net generating and firm purchased capability (MW) as of December 31, 20201
|
|||||||||||||||||||||||||||||||||||
Conventional oil-fired steam units | 999.5 | 50.1 | 35.9 | — | — | 1,085.5 | |||||||||||||||||||||||||||||
Diesel internal combustion engine | — | 29.5 | 96.8 | 9.4 | 9.8 | 145.5 | |||||||||||||||||||||||||||||
Simple-cycle combustion turbines | 230.8 | 46.3 | — | — | 2.2 | 279.3 | |||||||||||||||||||||||||||||
Dual train combined-cycle unit | — | 56.3 | 113.6 | — | — | 169.9 | |||||||||||||||||||||||||||||
Biodiesel internal combustion engine | 57.4 | — | — | — | — | 57.4 | |||||||||||||||||||||||||||||
Firm contract power2
|
456.5 | 60.0 | — | — | — | 516.5 | |||||||||||||||||||||||||||||
1,744.2 | 242.2 | 246.3 | 9.4 | 12.0 | 2,254.1 | ||||||||||||||||||||||||||||||
Net peak demand (MW)3
|
1,087.0 | 183.0 | 189.4 | 6.1 | 5.8 | 1,471.3 | |||||||||||||||||||||||||||||
Reserve margin | 58.7 | % | 32.3 | % | 33.5 | % | 54.1 | % | 106.9 | % | 53.2 | % | |||||||||||||||||||||||
Annual load factor | 68.0 | % | 65.0 | % | 56.9 | % | 61.8 | % | 63.0 | % | 66.2 | % | |||||||||||||||||||||||
kWh net generated and purchased (millions) | 6,473.5 | 1,042.1 | 944.8 | 33.0 | 32.0 | 8,525.4 |
Hawaiian Electric | Hawaii Electric Light | Maui Electric | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||
$/Barrel | ¢/MBtu | $/Barrel | ¢/MBtu | $/Barrel | ¢/MBtu | $/Barrel | ¢/MBtu | ||||||||||||||||||||||||||||||||||||||||
2020
|
62.06 | 1,003.7 | 63.21 | 1,048.3 | 66.81 | 1,122.7 | 63.00 | 1,028.7 | |||||||||||||||||||||||||||||||||||||||
2019 | 81.02 | 1,304.8 | 81.96 | 1,354.0 | 86.58 | 1,454.8 | 82.17 | 1,337.6 | |||||||||||||||||||||||||||||||||||||||
2018 | 86.11 | 1,371.8 | 89.81 | 1,489.5 | 93.60 | 1,573.6 | 87.90 | 1,420.2 |
Hawaiian Electric | Hawaii Electric Light | Maui Electric | |||||||||||||||||||||||||||||||||
% LSFO | % Biodiesel/Diesel | % HSFO | % Diesel | % HSFO | % Diesel | ||||||||||||||||||||||||||||||
2020
|
94 | 6 | 39 | 61 | 24 | 76 | |||||||||||||||||||||||||||||
2019 | 93 | 7 | 44 | 56 | 24 | 76 | |||||||||||||||||||||||||||||
2018 | 96 | 4 | 39 | 61 | 23 | 77 |
Property | Location (island) | Principal Fuel Type | Generating Capacity (MW) | Status | |||||||||||||
Hawaiian Electric: | |||||||||||||||||
Waiau1
|
Oahu | LSFO / Diesel | 480.8 | Active | |||||||||||||
Kahe1
|
Oahu | LSFO | 620.5 | Active | |||||||||||||
Campbell Industrial Park (CIP)1
|
Oahu | Diesel | 129.0 | Active | |||||||||||||
Honolulu Power Plant1
|
Oahu | N/A | — | Deactivated in 2014 | |||||||||||||
Schofield Generating Station2
|
Oahu | Biodiesel / ULSD | 49.4 | Active | |||||||||||||
West Loch PV Project3
|
Oahu | Renewable (Solar) | 20.0 | Active | |||||||||||||
Hawaii Electric Light4:
|
|||||||||||||||||
Shipman | Hawaii | N/A | — | Retired in 2015 | |||||||||||||
Waimea | Hawaii | ULSD | 7.5 | Active | |||||||||||||
Keahole | Hawaii | Diesel / ULSD | 77.6 | Active | |||||||||||||
Puna | Hawaii | HSFO / Diesel | 36.7 | Active | |||||||||||||
Hill/Kanoelehua | Hawaii | HSFO / ULSD | 55.4 | Active | |||||||||||||
Distributed generators at substation sites | Hawaii | ULSD | 5.0 | Active | |||||||||||||
Maui Electric5:
|
|||||||||||||||||
Kahului | Maui | HSFO | 35.9 | Active | |||||||||||||
Maalaea | Maui | Diesel / ULSD | 210.4 | Active | |||||||||||||
Miki Basin | Lanai | ULSD | 9.4 | Active | |||||||||||||
Palaau | Molokai | ULSD | 12.0 | Active |
Facility | Location (island) | Fuel Type | Capacity (barrels in thousands) | Generation Serviced | ||||||||||
Hawaiian Electric: | ||||||||||||||
Barbers Point Tank Farm | Oahu | LSFO | 1,000 | Kahe, Waiau | ||||||||||
Generation sites - various (in aggregate) | Oahu | LSFO | 770 | Various | ||||||||||
Generation sites - various (in aggregate) | Oahu | Diesel | 132 | Various | ||||||||||
Generation sites - various (in aggregate) | Oahu | Biodiesel | 11 | Various | ||||||||||
Hawaii Electric Light1:
|
||||||||||||||
Generation sites - various (in aggregate) | Hawaii | HSFO | 48 | Various | ||||||||||
Generation sites - various (in aggregate) | Hawaii | Diesel | 82 | Various | ||||||||||
Maui Electric2:
|
||||||||||||||
Generation sites - various (in aggregate) | Maui | HSFO | 81 | Various | ||||||||||
Generation sites - various (in aggregate) | Maui | Diesel | 95 | Various |
Number of branches | |||||||||||||||||
December 31, 2020 | Owned | Leased | Total | ||||||||||||||
Oahu | 10 | 19 | 29 | ||||||||||||||
Maui | 2 | 4 | 6 | ||||||||||||||
Hawaii | 3 | 1 | 4 | ||||||||||||||
Kauai | 2 | — | 2 | ||||||||||||||
Molokai | — | 1 | 1 | ||||||||||||||
17 | 25 | 42 |
ITEM 1A.
|
RISK FACTORS
|
ITEM 1B.
|
UNRESOLVED STAFF COMMENTS
|
ITEM 2.
|
PROPERTIES
|
ITEM 3.
|
LEGAL PROCEEDINGS
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
Name | Age | Business experience for last 5 years and prior positions with the Company | ||||||||||||
Constance H. Lau | 68 |
HEI President and Chief Executive Officer since 5/06
HEI Director, 6/01 to 12/04 and since 5/06
Hawaiian Electric Chairman of the Board, 5/06 to 5/19
ASB Hawaii Director since 5/06
ASB Chairman of the Board since 5/06, Risk Committee member since 2012 and Director since 1999
· ASB Chief Executive Officer, 6/01 to 11/10, and President, 6/01 to 1/08
· ASB Senior Executive Vice President and Chief Operating Officer and Director, 12/99 to 5/01
· HEI Power Corp. Financial Vice President and Treasurer, 5/97 to 8/99
· HEI Treasurer, 4/89 to 10/99, and HEI Assistant Treasurer, 12/87 to 4/89
· Hawaiian Electric Treasurer 12/87 to 4/89 and Assistant Corporate Counsel, 9/84 to 12/87
|
||||||||||||
Gregory C. Hazelton | 56 |
HEI Executive Vice President and Chief Financial Officer since 4/17
HEI Treasurer, 3/18 to 11/19
HEI Senior Vice President, Finance, 10/16 to 4/17
· Prior to rejoining the Company in 2016: Northwest Natural Gas Company, Senior Vice President, Chief Financial Officer and Treasurer, 2/16 to 9/16, and Northwest Natural Gas Company, Senior Vice President and Chief Financial Officer, 6/15 to 2/16
· HEI Vice President, Finance, Treasurer and Controller, 8/13 to 6/15
· Prior to joining the Company in 2013: UBS Investment Bank, Managing Director, Global Power & Utilities Group 3/11 to 5/13
|
||||||||||||
Kurt. K. Murao | 51 |
HEI Executive Vice President, General Counsel, Chief Administrative Officer and Corporate Secretary since 1/20
· HEI Vice President - Legal & Administration and Corporate Secretary, 10/16 to 12/19
· HEI Associate General Counsel, 3/11 to 10/16
|
||||||||||||
Scott W. H. Seu | 55 |
Hawaiian Electric President and Chief Executive Officer since 2/20
Hawaiian Electric Director since 2/20 · Hawaiian Electric Senior Vice President, Public Affairs, 1/17 to 2/20 · Hawaiian Electric Vice President, System Operation, 5/14 to 1/17 · Hawaiian Electric Vice President, Energy Resources and Operations, 1/13 to 5/14 · Hawaiian Electric Vice President, Energy Resources, 8/10 to 12/12 · Hawaiian Electric Manager, Resource Acquisition Department, 3/09 to 8/10 · Hawaiian Electric Manager, Energy Projects Department, 5/04 to 3/09 · Hawaiian Electric Manager, Customer Installations Department, 1/03 to 5/04 · Hawaiian Electric Manager, Environmental Department, 4/98 to 12/02 · Hawaiian Electric Principal Environmental Scientist, 1/97 to 4/98 · Hawaiian Electric Senior Environmental Scientist, 5/96 to 12/96 · Hawaiian Electric Environmental Scientist, 8/93 to 5/96 |
||||||||||||
Richard F. Wacker | 58 |
ASB President and Chief Executive Officer since 11/10
ASB Director since 11/10 |
ITEM 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
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 |
||||||||||||||||
October 1 to 31, 2020 | 23,985 | $ | 34.55 | — | NA | |||||||||||||||
November 1 to 30, 2020 | 17,502 | 36.33 | — | NA | ||||||||||||||||
December 1 to 31, 2020 | 189,171 | 36.81 | — | NA | ||||||||||||||||
Total | 230,658 | 36.54 | — | NA |
Quarters ended | 2020 | 2019 | |||||||||
(in thousands) | |||||||||||
March 31 | $ | 26,784 | $ | 25,313 | |||||||
June 30 | 26,784 | 25,313 | |||||||||
September 30 | 26,784 | 25,313 | |||||||||
December 31 | 26,782 | 25,313 | |||||||||
Total | $ | 107,134 | $ | 101,252 |
ITEM 6.
|
SELECTED FINANCIAL DATA
|
Selected Financial Data | |||||||||||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | |||||||||||||||||||||||||||||
Years ended December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||||||||||||||||
Results of operations | |||||||||||||||||||||||||||||
Revenues | $ | 2,579,775 | $ | 2,873,948 | $ | 2,860,849 | $ | 2,555,625 | $ | 2,380,056 | |||||||||||||||||||
Net income for common stock | 197,824 | 217,882 | 201,774 | 165,297 | 248,256 | ||||||||||||||||||||||||
Basic earnings per common share | 1.81 | 2.00 | 1.85 | 1.52 | 2.30 | ||||||||||||||||||||||||
Diluted earnings per common share | 1.81 | 1.99 | 1.85 | 1.52 | 2.29 | ||||||||||||||||||||||||
Return on average common equity | 8.6 | % | 9.8 | % | 9.5 | % | 7.9 | % | 12.4 | % | |||||||||||||||||||
Financial position * | |||||||||||||||||||||||||||||
Total assets | $ | 15,004,007 | $ | 13,745,251 | $ | 13,104,051 | $ | 12,534,160 | $ | 11,881,981 | |||||||||||||||||||
Deposit liabilities | 7,386,957 | 6,271,902 | 6,158,852 | 5,890,597 | 5,548,929 | ||||||||||||||||||||||||
Other bank borrowings | 89,670 | 115,110 | 110,040 | 190,859 | 192,618 | ||||||||||||||||||||||||
Long-term debt, net—other than bank | 2,119,129 | 1,964,365 | 1,879,641 | 1,683,797 | 1,619,019 | ||||||||||||||||||||||||
Preferred stock of subsidiaries – not subject to mandatory redemption
|
34,293 | 34,293 | 34,293 | 34,293 | 34,293 | ||||||||||||||||||||||||
Common stock equity | 2,337,502 | 2,280,260 | 2,162,280 | 2,097,386 | 2,066,753 | ||||||||||||||||||||||||
Common equity ratio | 51 | % | 51 | % | 124 | % | 53 | % | 56 | % | |||||||||||||||||||
Common stock | |||||||||||||||||||||||||||||
Book value per common share * | $ | 21.41 | $ | 20.92 | $ | 19.86 | $ | 19.28 | $ | 19.03 | |||||||||||||||||||
Dividends declared per common share | 1.32 | 1.28 | 1.24 | 1.24 | 1.24 | ||||||||||||||||||||||||
Dividend payout ratio | 73 | % | 64 | % | 67 | % | 82 | % | 54 | % | |||||||||||||||||||
Market price to book value per common share * | 165 | % | 224 | % | 184 | % | 188 | % | 174 | % | |||||||||||||||||||
Price earnings ratio ** | 19.6x | 23.5x | 19.8x | 23.8x | 14.4x | ||||||||||||||||||||||||
Common shares outstanding (thousands) * | 109,181 | 108,973 | 108,879 | 108,788 | 108,583 | ||||||||||||||||||||||||
Weighted-average-basic (thousands) | 109,140 | 108,949 | 108,855 | 108,749 | 108,102 | ||||||||||||||||||||||||
Shareholders *** | 24,225 | 24,766 | 25,369 | 26,064 | 26,831 | ||||||||||||||||||||||||
Employees * | 3,702 | 3,846 | 3,898 | 3,880 | 3,796 |
Years ended December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||||
Results of operations | |||||||||||||||||
Revenues | $ | 2,265,320 | $ | 2,545,942 | $ | 2,546,525 | $ | 2,257,566 | $ | 2,094,368 | |||||||
Net income for common stock | 169,340 | 156,840 | 143,653 | 119,951 | 142,317 | ||||||||||||
Financial position * | |||||||||||||||||
Utility plant | $ | 7,749,296 | $ | 7,485,178 | $ | 7,092,483 | $ | 6,717,311 | $ | 6,327,102 | |||||||
Accumulated depreciation | (2,819,079) | (2,690,157) | (2,577,342) | (2,476,352) | (2,369,282) | ||||||||||||
Net utility plant | $ | 4,930,217 | $ | 4,795,021 | $ | 4,515,141 | $ | 4,240,959 | $ | 3,957,820 | |||||||
Total assets | $ | 6,457,373 | $ | 6,388,682 | $ | 5,967,503 | $ | 5,630,613 | $ | 5,431,903 | |||||||
Current portion of long-term debt | $ | — | $ | 95,953 | $ | — | $ | 49,963 | $ | — | |||||||
Short-term borrowings from non-affiliates | 49,979 | 88,987 | 25,000 | 4,999 | — | ||||||||||||
Long-term debt, net | 1,561,302 | 1,401,714 | 1,418,802 | 1,318,516 | 1,319,260 | ||||||||||||
Common stock equity | 2,141,918 | 2,047,352 | 1,957,641 | 1,845,283 | 1,799,787 | ||||||||||||
Cumulative preferred stock-not
subject to mandatory redemption |
34,293 | 34,293 | 34,293 | 34,293 | 34,293 | ||||||||||||
Capital structure | $ | 3,787,492 | $ | 3,668,299 | $ | 3,435,736 | $ | 3,253,054 | $ | 3,153,340 | |||||||
Capital structure ratios (%)
|
|||||||||||||||||
Debt (short-term borrowings, and long-term debt, net, including current portion)
|
42.5 | 43.3 | 42.0 | 42.2 | 41.8 | ||||||||||||
Cumulative preferred stock | 0.9 | 0.9 | 1.0 | 1.1 | 1.1 | ||||||||||||
Common stock equity | 56.6 | 55.8 | 57.0 | 56.7 | 57.1 |
ITEM 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
HEI Consolidated |
(dollars in millions, except per share amounts) | 2020 | % change | 2019 | % change | 2018 | ||||||||||||||||||||||||
Revenues | $ | 2,580 | (10) | $ | 2,874 | — | $ | 2,861 | |||||||||||||||||||||
Operating income | 311 | (10) | 348 | 4 | 333 | ||||||||||||||||||||||||
Net income for common stock | 198 | (9) | 218 | 8 | 202 | ||||||||||||||||||||||||
Net income (loss) by segment: | |||||||||||||||||||||||||||||
Electric utility | $ | 169 | 8 | $ | 157 | 9 | $ | 144 | |||||||||||||||||||||
Bank | 58 | (35) | 89 | 8 | 83 | ||||||||||||||||||||||||
Other | (29) | (4) | (28) | (15) | (24) | ||||||||||||||||||||||||
Net income for common stock | $ | 198 | (9) | $ | 218 | 8 | $ | 202 | |||||||||||||||||||||
Basic earnings per share | $ | 1.81 | (10) | $ | 2.00 | 8 | $ | 1.85 | |||||||||||||||||||||
Diluted earnings per share | $ | 1.81 | (9) | $ | 1.99 | 8 | $ | 1.85 | |||||||||||||||||||||
Dividends per share | $ | 1.32 | 3 | $ | 1.28 | 3 | $ | 1.24 | |||||||||||||||||||||
Weighted-average number of common shares outstanding (millions) | 109.1 | — | 108.9 | — | 108.9 | ||||||||||||||||||||||||
Dividend payout ratio | 73 | % | 64 | % | 67 | % |
(in millions) | 2020 | 2019 |
Increase
(decrease) |
Primary reason(s) | ||||||||||||||||||||||
Revenue1
|
$ | 1 | $ | — | $ | 1 | Increase in other sales at Pacific Current subsidiaries. | |||||||||||||||||||
Operating loss1
|
(19) | (17) | (2) | HEI corporate expenses were higher ($22 million in 2020 vs $19 million in 2019) primarily due to increased charitable donations. Pacific Current operating income were comparable ($3 million in 2020 and 2019). | ||||||||||||||||||||||
Interest expense & other | (21) | (21) | — | Interest expense & other in 2020 was comparable to 2019. | ||||||||||||||||||||||
Income tax benefit | 11 | 10 | 1 | Higher tax benefit due to an increase in pretax losses | ||||||||||||||||||||||
Net loss | $ | (29) | $ | (28) | $ | (1) |
December 31 | 2020 | 2019 | |||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Short-term borrowings—other than bank | $ | 129 | 3 | % | $ | 186 | 4 | % | |||||||||||||||
Long-term debt, net—other than bank | 2,119 | 46 | 1,964 | 44 | |||||||||||||||||||
Preferred stock of subsidiaries | 34 | 1 | 34 | 1 | |||||||||||||||||||
Common stock equity | 2,338 | 50 | 2,280 | 51 | |||||||||||||||||||
$ | 4,620 | 100 | % | $ | 4,464 | 100 | % |
Year ended December 31, 2020 | |||||||||||||||||
(in millions) |
Average
balance |
End-of-period
balance |
December 31, 2019 | ||||||||||||||
Commercial paper | $ | 25 | $ | 65 | $ | 97 | |||||||||||
Line of credit draws | 6 | — | — | ||||||||||||||
Undrawn capacity under HEI’s line of credit facility | — | 150 | 150 |
Fitch | Moody’s | S&P | |||||||||
Long-term issuer default, long-term and issuer credit, respectively | BBB | WR* | BBB- | ||||||||
Commercial paper | F3 | P-3 | A-3 | ||||||||
Outlook | Stable | Positive | Positive |
December 31, 2020 | |||||||||||||||||||||||||||||
(in millions) |
Less than
1 year |
1-3
years |
3-5
years |
More than
5 years |
Total | ||||||||||||||||||||||||
Contractual obligations | |||||||||||||||||||||||||||||
Investment in qualifying affordable housing projects | $ | 15 | $ | — | $ | — | $ | 26 | $ | 41 | |||||||||||||||||||
Time certificates | 348 | 139 | 59 | 3 | 549 | ||||||||||||||||||||||||
Short-term borrowings | 129 | — | — | — | 129 | ||||||||||||||||||||||||
Other bank borrowings | 90 | — | — | — | 90 | ||||||||||||||||||||||||
Long-term debt | 55 | 403 | 109 | 1,562 | 2,129 | ||||||||||||||||||||||||
Interest on CDs, other bank borrowings, short-term loan and long-term debt
|
89 | 160 | 138 | 730 | 1,117 | ||||||||||||||||||||||||
Operating leases
|
|||||||||||||||||||||||||||||
PPAs classified as leases | 63 | 42 | — | — | 105 | ||||||||||||||||||||||||
Other operating leases | 11 | 17 | 12 | 27 | 67 | ||||||||||||||||||||||||
Service bureau contract, maintenance agreements and other | 18 | 18 | 8 | — | 44 | ||||||||||||||||||||||||
Hawaiian Electric open purchase order obligations1
|
46 | 13 | 3 | — | 62 | ||||||||||||||||||||||||
Hawaiian Electric fuel oil purchase obligations (estimate based on fuel oil price at December 31)
|
5 | 5 | — | — | 10 | ||||||||||||||||||||||||
Hawaiian Electric power purchase–minimum fixed capacity charges not classified as leases
|
30 | 60 | 60 | 188 | 338 | ||||||||||||||||||||||||
Total (estimated) | $ | 899 | $ | 857 | $ | 389 | $ | 2,536 | $ | 4,681 |
Actuarial assumption |
Change in assumption
in basis points |
Impact on HEI Consolidated
PBO or APBO |
Impact on Consolidated Hawaiian Electric
PBO or APBO |
|||||||||||
(dollars in millions) | ||||||||||||||
Pension benefits | ||||||||||||||
Discount rate |
‘+/- 50
|
$(213)/$244 | $(202)/$231 | |||||||||||
Other benefits | ||||||||||||||
Discount rate |
‘+/- 50
|
$(15)/$17 | $(15)/$17 |
Electric utility |
% | Rate-making Return on rate base (RORB)* | ROACE** | Rate-making ROACE*** | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2020 | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Hawaiian Electric | Hawaii Electric Light | Maui Electric | |||||||||||||||||||||||||||||||||||||||||||||||
Utility returns | 6.94 | 7.09 | 5.82 | 8.20 | 8.92 | 6.65 | 9.01 | 9.23 | 7.11 | |||||||||||||||||||||||||||||||||||||||||||||||
PUC-allowed returns | 7.37 | 7.52 | 7.43 | 9.50 | 9.50 | 9.50 | 9.50 | 9.50 | 9.50 | |||||||||||||||||||||||||||||||||||||||||||||||
Difference | (0.43) | (0.43) | (1.61) | (1.30) | (0.58) | (2.85) | (0.49) | (0.27) | (2.39) |
2020 | 2019 | Increase (decrease) | (dollars in millions, except per barrel amounts) | |||||||||||||||||||||||
$ | 2,265 | $ | 2,546 | $ | (281) |
Revenues. Net decrease largely due to:
|
||||||||||||||||||||
$ | (228) |
lower fuel prices and lower kWh generated1
|
||||||||||||||||||||||||
(66) |
lower kWh purchased and lower purchased power energy costs2
|
|||||||||||||||||||||||||
(6) | higher cost savings from ERP system implementation to be returned to the customer in future rates | |||||||||||||||||||||||||
(5) |
lower PPAC revenue 2
|
|||||||||||||||||||||||||
20 | higher electric rates | |||||||||||||||||||||||||
4 | higher MPIR revenue (increase for West Loch PV project and Grid Modernization project) | |||||||||||||||||||||||||
515 | 721 | (206) |
Fuel oil expense.1 Net decrease largely due to lower fuel oil prices and lower kWh generated, offset in part by higher fuel handling costs
|
|||||||||||||||||||||||
569 | 633 | (64) |
Purchased power expense1,2. Decrease largely due to lower kWh purchased, lower purchased power energy price and lower capacity and non-fuel O&M charges
|
|||||||||||||||||||||||
474 | 482 | (8) |
Operation and maintenance expense. Net decrease largely due to:
|
|||||||||||||||||||||||
(10) | fewer generating unit overhauls performed in 2020 | |||||||||||||||||||||||||
(7) | lower labor due to lower staffing and reduction in overtime | |||||||||||||||||||||||||
(2) | less station maintenance work performed | |||||||||||||||||||||||||
6 | increase in Pearl Harbor environmental reserve | |||||||||||||||||||||||||
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 | higher medical premium costs | |||||||||||||||||||||||||
438 | 456 | (18) |
Other expenses. Decrease due to lower revenue taxes, offset in part by higher depreciation expense in 2020 for plant investments in 2019
|
|||||||||||||||||||||||
269 | 254 | 15 |
Operating income. Increase due to lower operation and maintenance expenses, coupled with higher electric rates and higher MPIR revenue, offset in part by higher depreciation expenses
|
|||||||||||||||||||||||
212 | 197 | 15 |
Income before income taxes. Increase due to lower operation and maintenance expense, higher electric rates, higher MPIR revenue and lower interest expense related to the hybrid securities redemption replaced with lower cost debt (in May 2019) and refinancing of revenue bonds (in July 2019), offset in part by higher depreciation expense and lower AFUDC
|
|||||||||||||||||||||||
169 | 157 | 12 |
Net income for common stock. Increase due to lower operating expenses, coupled with higher electric rates and MPIR revenues. See below for effective tax rate explanation
|
|||||||||||||||||||||||
8.1 | % | 7.8 | % | 0.3 | % | Return on average common equity | ||||||||||||||||||||
63.00 | 82.17 | (19.17) | Average fuel oil cost per barrel | |||||||||||||||||||||||
8,120 | 8,740 | (620) |
Kilowatthour sales (millions) 3
|
|||||||||||||||||||||||
2,579 | 2,670 | (91) | Number of employees (at December 31) |
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
20201
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Request | 8/21/19 | $ | 77.6 | 4.1 | 10.50 | 7.97 | $ | 2,477 | 57.15 | Yes | ||||||||||||||||||||||||||||||||||||||||
Final Decision and Order | 10/22/20 | — | — | 9.50 | 7.37 | NA | 57.15 | |||||||||||||||||||||||||||||||||||||||||||
Hawaii Electric Light | ||||||||||||||||||||||||||||||||||||||||||||||||||
20192
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Request | 12/14/18 | $ | 13.4 | 3.4 | 10.50 | 8.30 | $ | 537 | 56.91 | Yes | ||||||||||||||||||||||||||||||||||||||||
Interim Decision and Order | 11/13/19 | — | — | 9.50 | 7.52 | 534 | 56.83 | |||||||||||||||||||||||||||||||||||||||||||
Final Decision and Order | 7/28/20 | — | — | 9.50 | 7.52 | 534 | 56.83 | |||||||||||||||||||||||||||||||||||||||||||
Utilities | Number of contracts | Total photovoltaic size (MW) | 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 | 9/30/21 & 12/31/21 | 20 & 25 | $ | 30.9 | |||||||||||||||||||||||||||||||
Hawaii Electric Light | 2 | 60 | 60/240 | 7/20/21 & 6/30/22 | 25 | 14.1 | ||||||||||||||||||||||||||||||||
Maui Electric | 2 | 75 | 75/300 | 7/20/21 & 6/30/22 | 25 | 17.6 | ||||||||||||||||||||||||||||||||
Total | 8 | 274.5 | 274.5/1,098 | $ | 62.6 |
Utilities | Number of contracts | Total photovoltaic size (MW) | BESS Size (MW/MWh) | Guaranteed commercial operation dates | Contract term (years) | Total projected annual payment (in millions) | ||||||||||||||||||||||||||||||||
Hawaiian Electric | 5 | 232 | 232/1,055 | 5/31/22, 5/17/23, 10/30/23, 12/29/23 & 12/31/23 | 20 & 25 | $ | 62.0 | |||||||||||||||||||||||||||||||
Hawaiian Electric | 1 | N/A | 185/565 | 6/1/22 | 20 | 24.0 | ||||||||||||||||||||||||||||||||
Hawaii Electric Light | 1 | 60 | 60/240 | 9/30/23 | 25 | 15.5 | ||||||||||||||||||||||||||||||||
Maui Electric | 3 | 100 | 100/400 | 4/30/23 & 12/29/23 | 25 | 28.2 | ||||||||||||||||||||||||||||||||
Total | 10 | 392 | 577/2,260 | $ | 129.7 |
Utilities |
Fast Frequency Response - 1
(MW) |
Fast Frequency Response - 2
(MW) |
Capacity -
Load Build (MW) |
Capacity -
Load Reduction (MW) |
||||||||||||||||||||||||||||
Hawaiian Electric | — | 26.7 | 14.5 | 19.4 | ||||||||||||||||||||||||||||
Hawaii Electric Light | 6.0 | — | 3.2 | 4.0 | ||||||||||||||||||||||||||||
Maui Electric | 6.1 | — | 1.9 | 4.7 | ||||||||||||||||||||||||||||
Total | 12.1 | 26.7 | 19.6 | 28.1 |
Utilities | Number of contracts | BESS Size (MW/MWh) | Guaranteed commercial operation dates | |||||||||||||||||
Hawaii Electric Light | 1 | 12/12 | 12/30/22 | |||||||||||||||||
Maui Electric | 1 | 40/160 | 4/28/23 | |||||||||||||||||
Total | 2 | 52/172 |
December 31 | 2020 | 2019 | |||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Short-term borrowings1
|
$ | 50 | 1 | % | $ | 89 | 2 | % | |||||||||||||||
Long-term debt, net | 1,561 | 41 | 1,498 | 41 | |||||||||||||||||||
Preferred stock | 34 | 1 | 34 | 1 | |||||||||||||||||||
Common stock equity | 2,142 | 57 | 2,047 | 56 | |||||||||||||||||||
$ | 3,787 | 100 | % | $ | 3,668 | 100 | % |
Year ended December 31, 2020 | |||||||||||||||||
(in millions) |
Average
balance |
End-of-period
balance |
December 31, 2019 | ||||||||||||||
Short-term borrowings1
|
|||||||||||||||||
Commercial paper | $ | 18 | $ | — | $ | 39 | |||||||||||
Line of credit draws | 16 | — | — | ||||||||||||||
Borrowings from HEI | — | — | — | ||||||||||||||
Undrawn capacity under line of credit facilities | — | 275 | 200 |
Fitch | Moody’s | S&P** | |||||||||
Long-term issuer default, long-term and issuer credit, respectively | BBB+ | Baa2 | BBB- | ||||||||
Commercial paper | F2 | P-2 | A-3 | ||||||||
Senior unsecured debt/special purpose revenue bonds | A- | Baa2 | BBB- | ||||||||
Cumulative preferred stock (selected series) | * | Ba1 | * | ||||||||
Outlook | Stable | Positive | Positive |
(in millions) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | ||||||||
Total “up to” amounts of taxable debt authorized through 2022 | $ | 410 | $ | 150 | $ | 130 | |||||
Less: | |||||||||||
Taxable debt authorized and issued in 2018 under April 2018 Approval | 75 | 15 | 10 | ||||||||
Taxable debt issuance to refinance the 2004 QUIDS in 2019 | 30 | 10 | 10 | ||||||||
Taxable debt issuance in May 2020 | 110 | 10 | 40 | ||||||||
Taxable debt executed in October 2020, but issued on January 14, 2021
|
60 | 30 | 25 | ||||||||
Remaining authorized amounts | $ | 135 | $ | 85 | $ | 45 |
(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, 2018, 2019 and 2020 | 154.2 | 7.5 | 22.2 | ||||||||
Remaining authorized amounts | $ | 275.8 | $ | 102.5 | $ | 87.8 |
Years ended December 31 | |||||||||||||||||
(in thousands) | 2020 | 2019 | Change | ||||||||||||||
Net cash provided by operating activities | $ | 336,551 | $ | 423,956 | $ | (87,405) | |||||||||||
Net cash used in investing activities | (344,794) | (408,524) | 63,730 | ||||||||||||||
Net cash provided by (used in) financing activities | 29,675 | (9,415) | 39,090 |
December 31, 2020 | Payments due by period | ||||||||||||||||||||||||||||
(in millions) | Less than 1 year |
1-3
years
|
3-5
years
|
More than
5 years |
Total | ||||||||||||||||||||||||
Short-term borrowings | $ | 50 | $ | — | $ | — | $ | — | $ | 50 | |||||||||||||||||||
Long-term debt | — | 152 | 47 | 1,370 | 1,569 | ||||||||||||||||||||||||
Interest on long-term debt | 66 | 129 | 117 | 703 | 1,015 | ||||||||||||||||||||||||
Operating leases
|
|||||||||||||||||||||||||||||
PPAs classified as leases
|
63 | 42 | — | — | 105 | ||||||||||||||||||||||||
Other leases
|
6 | 8 | 6 | 19 | 39 | ||||||||||||||||||||||||
Open purchase order obligations 1
|
46 | 13 | 3 | — | 62 | ||||||||||||||||||||||||
Fuel oil purchase obligations (estimate based on fuel oil price at December 31)
|
5 | 5 | — | — | 10 | ||||||||||||||||||||||||
Purchase power obligations-minimum fixed capacity charges not classified as leases
|
30 | 60 | 60 | 188 | 338 | ||||||||||||||||||||||||
Total (estimated) | $ | 266 | $ | 411 | $ | 233 | $ | 2,280 | $ | 3,190 |
Bank |
(in millions) | 2020 | 2019 |
Increase
(decrease) |
Primary reason(s) | ||||||||||||||||||||||
Interest income | $ | 244 | $ | 266 | $ | (22) | Lower interest income was due to lower average earning asset yields, partly offset by an increase in average earning asset balances. ASB’s average loan portfolio balance for 2020 was $368 million higher than 2019’s average loan portfolio balance primarily due to increases in the average commercial, commercial real estate and HELOC loan portfolio balances of $315 million, $91 million and $17 million, respectively. The growth in the commercial loan portfolio included the PPP loans with an average balance of $242 million. The average balance for the consumer loan portfolio, which had shown strong growth in the past few years, decreased $54 million due to ASB’s decision to reduce its production of personal unsecured loans in the current economic environment. The 2020 loan portfolio yield decreased 68 basis points compared to the prior year loan portfolio yield due to the decreases in interest rates which started during the last half of 2019 and continued in 2020 as the Federal Reserve lowered its benchmark interest rate to zero to shelter the economy from the effects of the COVID-19 pandemic, The average investment securities portfolio balance increased by $153 million and the portfolio yield decreased 37 basis points. ASB purchased investment securities with excess liquidity as the bank experienced strong deposit inflows which exceeded its loan funding needs. The decrease in the investment yields were due to the low interest rate environment and an increase in the amortization of premiums in the investment portfolio. | |||||||||||||||||||
Noninterest income | 78 | 73 | 5 | Noninterest income was higher in 2020 compared to 2019 primarily due to an increase in mortgage banking income and higher gain on sales of securities, partly offset by lower gain on sale of real estate, lower fee income from financial services and deposit liabilities, and lower bank-owned life insurance payouts. The increase in mortgage banking income was due to an increase in residential mortgage loan sales in the secondary market as a result of higher loan production volumes. The increase in gain on sale of securities was due the sale of the bank’s entire Visa Class B restricted shares and $160 million of investment securities. The sale of the investment securities reduced yield volatility and credit risk within the investment portfolio. In 2019, ASB sold two office facilities that were no longer needed when ASB moved into its new campus headquarters, which resulted in a gain on sale of real estate of $10.8 million with no similar sales in 2020. The decrease in fee income from financial services and deposit liabilities was due to ASB’s decision to waive overdraft and other deposit account fees during the second and third quarters of 2020 to accommodate the hardships customers were experiencing during the COVID-19 pandemic. The higher bank-owned life insurance income in 2019 was due to higher proceeds from life insurance policies received in 2019 compared to 2020. | ||||||||||||||||||||||
Less: gain on sale of real estate | — | (11) | 11 | Gain on sale of real estate, which is included in Noninterest income above and in the Bank’s statements of income and comprehensive income in Note 4 of the Consolidated Financial Statements, is included in Bank expenses in the consolidated statements of income, and accordingly, is reflected in operating expenses below as a separate line item and excluded from Revenues. | ||||||||||||||||||||||
Less: gain on sale of investment securities, net | (9) | (1) | (8) | Gain on sale of investment securities, net, which is included in Noninterest income above and in the Bank’s statements of income and comprehensive income in Note 4 of the Consolidated Financial Statements, is classified as gain on sale of investment securities, net in the consolidated statements of income, and accordingly, is reflected below following operating income as a separate line item and excluded from Revenues. | ||||||||||||||||||||||
Revenues | 313 | 327 | (14) | The decrease in revenues was primarily due to lower interest income partly offset by higher noninterest income. | ||||||||||||||||||||||
Interest expense | 11 | 18 | (7) | Lower interest expense was primarily due to a decrease in term certificate balances and lower deposit rates. Average deposit balances for 2020 increased by $639 million compared to 2019 due to an increase in core deposits of $785 million, partly offset by a decrease in term certificates of $146 million. Average cost of deposits for 2020 was 16 basis points, or 11 basis points lower than the average cost of deposits for 2019. The other borrowings average balance decreased by $15 million primarily due to a decrease in FHLB advances. Average cost of other borrowings for 2020 was 0.47%, or 95 basis points lower than the average cost of borrowings for 2019. |
(in millions) | 2020 | 2019 |
Increase
(decrease) |
Primary reason(s) | ||||||||||||||||||||||
Provision for credit losses | 51 | 24 | 27 | The provision for credit losses for 2020 increased compared to the provision for loan losses in 2019. The provision for credit losses in 2020 was primarily for $38.5 million of increased reserves in the commercial, commercial real estate and consumer loan portfolios for expected credit deterioration due to the COVID-19 pandemic and to cover net charge-offs of $21.4 million, partly offset by the release of reserves primarily due to the lower consumer loan portfolio balances. The provision for credit losses in 2019 was primarily for additional loss reserves for the consumer and credit scored loan portfolios to cover net charge-offs, and reserves for an impaired commercial credit. | ||||||||||||||||||||||
Noninterest expense | 191 | 185 | 6 |
Higher noninterest expense was primarily due to higher compensation and benefit expenses, FDIC insurance premiums and additional expenses1 related to the COVID-19 pandemic of approximately $5.1 million. The increase in compensation and employee benefits was due to higher employee benefit costs. The increase in FDIC insurance premiums was due to 2019 expenses included a higher amount of assessment credits. See Recent Development-COVID-19 for a discussion of the additional expenses incurred due to the COVID-19 pandemic.
|
||||||||||||||||||||||
Gain on sale of real estate | — | (11) | 11 | |||||||||||||||||||||||
Expenses | 253 | 216 | 37 | The increase in expenses was primarily due to higher provision for credit losses, and an increase in noninterest expense, partly offset by lower interest expense. 2019 expenses also included the gain on sale of real estate which reduced expenses by $11 million with no similar gain on sale of real estate in 2020. | ||||||||||||||||||||||
Operating income | 60 | 111 | (51) | Lower interest income, higher provision for credit losses and higher noninterest expenses, partly offset by lower interest expense and higher noninterest income. | ||||||||||||||||||||||
Gain on sale of investment securities, net | 9 | 1 | 8 | |||||||||||||||||||||||
Net income | $ | 58 | $ | 89 | $ | (31) | The decrease in net income was the result of lower operating income partly offset by lower income tax expense and higher gain on sale of investment securities. | |||||||||||||||||||
Return on average equity2
|
8.1 | % | 13.5 | % | (5.4) | % |
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) |
Average
balance |
Interest
income/ expense |
Yield/
rate (%) |
Average
balance |
Interest
income/ expense |
Yield/
rate (%) |
Average
balance |
Interest
income/ expense |
Yield/
rate (%) |
||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning deposits | $ | 153,879 | $ | 241 | 0.16 | $ | 16,618 | $ | 320 | 1.92 | $ | 50,658 | $ | 940 | 1.86 | ||||||||||||||||||||||||||||||||||||||
FHLB stock
|
9,481 | 306 | 3.23 | 9,716 | 350 | 3.60 | 9,726 | 351 | 3.60 | ||||||||||||||||||||||||||||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable
|
1,554,812 | 29,213 | 1.88 | 1,406,564 | 31,178 | 2.22 | 1,503,036 | 35,862 | 2.39 | ||||||||||||||||||||||||||||||||||||||||||||
Non-taxable
|
32,080 | 974 | 3.04 | 27,512 | 1,360 | 4.94 | 17,485 | 771 | 4.41 | ||||||||||||||||||||||||||||||||||||||||||||
Total investment securities
|
1,586,892 | 30,187 | 1.90 | 1,434,076 | 32,538 | 2.27 | 1,520,521 | 36,633 | 2.41 | ||||||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 2,180,013 | 85,769 | 3.93 | 2,181,554 | 89,956 | 4.12 | 2,122,895 | 86,936 | 4.10 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 954,836 | 34,596 | 3.62 | 863,468 | 40,324 | 4.67 | 860,155 | 39,579 | 4.60 | ||||||||||||||||||||||||||||||||||||||||||||
Home equity line of credit | 1,060,444 | 33,731 | 3.18 | 1,043,479 | 38,826 | 3.72 | 944,065 | 34,634 | 3.67 | ||||||||||||||||||||||||||||||||||||||||||||
Residential land | 13,799 | 754 | 5.46 | 14,065 | 774 | 5.50 | 14,935 | 823 | 5.51 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial | 935,663 | 31,642 | 3.38 | 620,206 | 27,950 | 4.51 | 579,765 | 26,689 | 4.60 | ||||||||||||||||||||||||||||||||||||||||||||
Consumer | 215,994 | 27,728 | 12.84 | 270,340 | 35,864 | 13.27 | 240,414 | 31,802 | 13.23 | ||||||||||||||||||||||||||||||||||||||||||||
Total loans 1,2
|
5,360,749 | 214,220 | 4.00 | 4,993,112 | 233,694 | 4.68 | 4,762,229 | 220,463 | 4.63 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets 3
|
7,111,001 | 244,954 | 3.44 | 6,453,522 | 266,902 | 4.14 | 6,343,134 | 258,387 | 4.07 | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (81,193) | (54,640) | (53,593) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-earning assets | 762,746 | 696,270 | 606,304 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 7,792,554 | $ | 7,095,152 | $ | 6,895,845 | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Shareholder’s Equity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings | $ | 2,620,311 | 1,774 | 0.07 | $ | 2,340,671 | 1,904 | 0.08 | $ | 2,334,681 | 1,639 | 0.07 | |||||||||||||||||||||||||||||||||||||||||
Interest-bearing checking | 1,106,563 | 471 | 0.04 | 1,044,315 | 1,298 | 0.12 | 1,006,839 | 706 | 0.07 | ||||||||||||||||||||||||||||||||||||||||||||
Money market | 161,084 | 465 | 0.29 | 145,939 | 953 | 0.65 | 140,225 | 602 | 0.43 | ||||||||||||||||||||||||||||||||||||||||||||
Time certificates | 664,578 | 7,944 | 1.20 | 810,749 | 12,675 | 1.56 | 789,926 | 11,044 | 1.40 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 4,552,536 | 10,654 | 0.23 | 4,341,674 | 16,830 | 0.39 | 4,271,671 | 13,991 | 0.33 | ||||||||||||||||||||||||||||||||||||||||||||
Advances from Federal Home Loan Bank
|
21,490 | 146 | 0.68 | 33,652 | 843 | 2.50 | 41,855 | 845 | 2.02 | ||||||||||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase and federal funds purchased | 76,360 | 314 | 0.41 | 79,647 | 767 | 0.96 | 99,162 | 703 | 0.71 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 4,650,386 | 11,114 | 0.24 | 4,454,973 | 18,440 | 0.41 | 4,412,688 | 15,539 | 0.35 | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | 2,276,722 | 1,848,336 | 1,763,331 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 155,589 | 131,691 | 108,976 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholder’s equity | 709,857 | 660,152 | 610,850 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities and Shareholder’s Equity
|
$ | 7,792,554 | $ | 7,095,152 | $ | 6,895,845 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 233,840 | $ | 248,462 | $ | 242,848 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin (%)4
|
3.29 | 3.85 | 3.83 |
2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||||||
(in thousands) | Rate | Volume | Total | Rate | Volume | Total | |||||||||||||||||||||||||||||
Interest income | |||||||||||||||||||||||||||||||||||
Interest-earning deposits | $ | (545) | $ | 466 | $ | (79) | $ | 31 | $ | (651) | $ | (620) | |||||||||||||||||||||||
FHLB stock | (36) | (8) | (44) | — | (1) | (1) | |||||||||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||||||||||||
Taxable | (5,062) | 3,097 | (1,965) | (2,462) | (2,222) | (4,684) | |||||||||||||||||||||||||||||
Non-taxable | (585) | 199 | (386) | 102 | 487 | 589 | |||||||||||||||||||||||||||||
Total investment securities | (5,647) | 3,296 | (2,351) | (2,360) | (1,735) | (4,095) | |||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||
Residential 1-4 family | (4,124) | (63) | (4,187) | 454 | 2,566 | 3,020 | |||||||||||||||||||||||||||||
Commercial real estate | (9,697) | 3,969 | (5,728) | 595 | 150 | 745 | |||||||||||||||||||||||||||||
Home equity line of credit | (5,717) | 622 | (5,095) | 481 | 3,711 | 4,192 | |||||||||||||||||||||||||||||
Residential land | (6) | (14) | (20) | (1) | (48) | (49) | |||||||||||||||||||||||||||||
Commercial | (3,447) | 7,139 | 3,692 | (539) | 1,800 | 1,261 | |||||||||||||||||||||||||||||
Consumer | (1,129) | (7,007) | (8,136) | 96 | 3,966 | 4,062 | |||||||||||||||||||||||||||||
Total loans | (24,120) | 4,646 | (19,474) | 1,086 | 12,145 | 13,231 | |||||||||||||||||||||||||||||
Total increase (decrease) in interest income
|
(30,348) | 8,400 | (21,948) | (1,243) | 9,758 | 8,515 | |||||||||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||||||||
Savings | 298 | (168) | 130 | (261) | (4) | (265) | |||||||||||||||||||||||||||||
Interest-bearing checking | 897 | (70) | 827 | (563) | (29) | (592) | |||||||||||||||||||||||||||||
Money market | 577 | (89) | 488 | (325) | (26) | (351) | |||||||||||||||||||||||||||||
Time certificates | 2,656 | 2,075 | 4,731 | (1,325) | (306) | (1,631) | |||||||||||||||||||||||||||||
Advances from Federal Home Loan Bank | 466 | 231 | 697 | (181) | 183 | 2 | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase and federal funds purchased | 422 | 31 | 453 | (219) | 155 | (64) | |||||||||||||||||||||||||||||
Total decrease (increase) in interest expense
|
5,316 | 2,010 | 7,326 | (2,874) | (27) | (2,901) | |||||||||||||||||||||||||||||
Increase (decrease) in net interest income | $ | (25,032) | $ | 10,410 | $ | (14,622) | $ | (4,117) | $ | 9,731 | $ | 5,614 |
December 31 | 2020 | ||||||||||||||||||||||||||||
Due |
In
1 year or less |
After 1 year
through 5 years |
After 5 years
through 15 years |
After
15 years |
Total | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Residential 1-4 family – Fixed | $ | 70 | $ | 297 | $ | 767 | $ | 871 | $ | 2,005 | |||||||||||||||||||
Residential 1-4 family – Adjustable | 9 | 33 | 75 | 22 | 139 | ||||||||||||||||||||||||
Total residential 1-4 family | 79 | 330 | 842 | 893 | 2,144 | ||||||||||||||||||||||||
Commercial real estate – Fixed | 51 | 177 | 299 | — | 527 | ||||||||||||||||||||||||
Commercial real estate – Adjustable | 115 | 176 | 166 | — | 457 | ||||||||||||||||||||||||
Total commercial real estate | 166 | 353 | 465 | — | 984 | ||||||||||||||||||||||||
Home equity line of credit– Fixed | 25 | 91 | 92 | 4 | 212 | ||||||||||||||||||||||||
Home equity line of credit – Adjustable | 8 | 33 | 230 | 481 | 752 | ||||||||||||||||||||||||
Total home equity line of credit | 33 | 124 | 322 | 485 | 964 | ||||||||||||||||||||||||
Residential land– Fixed | 2 | 14 | — | — | 16 | ||||||||||||||||||||||||
Residential land – Adjustable | — | — | — | — | — | ||||||||||||||||||||||||
Total residential land | 2 | 14 | — | — | 16 | ||||||||||||||||||||||||
Commercial construction – Fixed | — | — | — | — | — | ||||||||||||||||||||||||
Commercial construction – Adjustable | 21 | 29 | 20 | 51 | 121 | ||||||||||||||||||||||||
Total commercial construction | 21 | 29 | 20 | 51 | 121 | ||||||||||||||||||||||||
Residential construction – Fixed | 11 | — | — | — | 11 | ||||||||||||||||||||||||
Residential construction – Adjustable | — | — | — | — | — | ||||||||||||||||||||||||
Total residential construction | 11 | — | — | — | 11 | ||||||||||||||||||||||||
Commercial – Fixed | 63 | 451 | 62 | — | 576 | ||||||||||||||||||||||||
Commercial – Adjustable | 119 | 230 | 12 | — | 361 | ||||||||||||||||||||||||
Total commercial | 182 | 681 | 74 | — | 937 | ||||||||||||||||||||||||
Consumer – Fixed | 65 | 81 | 4 | — | 150 | ||||||||||||||||||||||||
Consumer – Adjustable | 4 | 12 | 2 | — | 18 | ||||||||||||||||||||||||
Total consumer | 69 | 93 | 6 | — | 168 | ||||||||||||||||||||||||
Total loans – Fixed | 287 | 1,111 | 1,224 | 875 | 3,497 | ||||||||||||||||||||||||
Total loans – Adjustable | 276 | 513 | 505 | 554 | 1,848 | ||||||||||||||||||||||||
Total loans | $ | 563 | $ | 1,624 | $ | 1,729 | $ | 1,429 | $ | 5,345 |
December 31 | 2020 | 2019 | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential 1-4 family | $ | 11,826 | $ | 11,395 | |||||||||||||||||||||||||
Commercial real estate | 18,722 | 195 | |||||||||||||||||||||||||||
Home equity line of credit | 7,358 | 6,638 | |||||||||||||||||||||||||||
Residential land | 408 | 448 | |||||||||||||||||||||||||||
Commercial construction | — | — | |||||||||||||||||||||||||||
Residential construction | — | — | |||||||||||||||||||||||||||
Total real estate | 38,314 | 18,676 | |||||||||||||||||||||||||||
Commercial | 5,147 | 5,947 | |||||||||||||||||||||||||||
Consumer | 3,935 | 5,113 | |||||||||||||||||||||||||||
Total nonaccrual loans | $ | 47,396 | $ | 29,736 | |||||||||||||||||||||||||
Loans receivable, net | $ | 5,333,843 | $ | 5,121,176 | |||||||||||||||||||||||||
Allowance for credit losses | $ | 101,201 | $ | 53,355 | |||||||||||||||||||||||||
Nonaccrual loans to loans receivable, net | 0.89 | % | 0.58 | % | |||||||||||||||||||||||||
Allowance for credit losses to nonaccrual loans | 2.14x | 1.79x |
December 31 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Allowance balance |
Allowance
to loan receivable % |
Loan
receivable % of total |
Allowance balance |
Allowance
to loan receivable % |
Loan
receivable % of total |
|||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family
|
$ | 4,600 | 0.21 | 40.1 | $ | 2,380 | 0.11 | 42.6 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate
|
35,607 | 3.62 | 18.4 | 15,053 | 1.82 | 16.1 | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity line of credit
|
6,813 | 0.71 | 18.0 | 6,922 | 0.63 | 21.3 | |||||||||||||||||||||||||||||||||||||||||||||||
Residential land | 609 | 3.90 | 0.3 | 449 | 3.05 | 0.3 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction
|
4,149 | 3.42 | 2.3 | 2,097 | 2.97 | 1.4 | |||||||||||||||||||||||||||||||||||||||||||||||
Residential construction
|
11 | 0.10 | 0.2 | 3 | 0.03 | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||
Total real estate
|
51,789 | 1.22 | 79.3 | 26,904 | 0.64 | 81.9 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 25,462 | 2.72 | 17.5 | 10,245 | 1.53 | 13.1 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 23,950 | 14.19 | 3.2 | 16,206 | 6.28 | 5.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Total allowance for credit losses | $ | 101,201 | 1.90 | 100.0 | $ | 53,355 | 1.04 | 100.0 | |||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) |
In 1 year
or less |
After 1 year
through 5 years |
After 5 years
through 10 years |
After
10 years |
Mortgage-backed securities |
Total1
|
|||||||||||||||||||||||||||||
U.S. Treasury and federal agency obligations | $ | 5 | $ | 32 | $ | 23 | $ | — | $ | — | $ | 60 | |||||||||||||||||||||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | — | — | — | — | 2,053 | 2,053 | |||||||||||||||||||||||||||||
Corporate bonds | 12 | 9 | 9 | — | — | 30 | |||||||||||||||||||||||||||||
Mortgage revenue bonds1
|
— | — | — | 27 | — | 27 | |||||||||||||||||||||||||||||
$ | 17 | $ | 41 | $ | 32 | $ | 27 | $ | 2,053 | $ | 2,170 | ||||||||||||||||||||||||
Weighted average yield | 2.98 | % | 2.47 | % | 2.42 | % | 2.13 | % | 1.67 | % | 1.72 | % |
(in thousands) | Amount | ||||
Three months or less | $ | 53,407 | |||
Greater than three months through six months | 17,518 | ||||
Greater than six months through twelve months | 25,069 | ||||
Greater than twelve months | 25,262 | ||||
$ | 121,256 |
December 31 | 2020 | % change | 2019 | % change | |||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Total assets | $ | 8,397 | 16 | $ | 7,233 | 3 | |||||||||||||||||
Investment securities | 2,197 | 60 | 1,372 | (10) | |||||||||||||||||||
Loans held for investment, net | 5,233 | 3 | 5,068 | 6 | |||||||||||||||||||
Deposit liabilities | 7,387 | 18 | 6,272 | 2 | |||||||||||||||||||
Other bank borrowings | 90 | (22) | 115 | 5 |
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Bank interest rate risk |
Change in NII
(gradual change in interest rates) |
Change in EVE
(instantaneous change in interest rates) |
|||||||||||||||||||||||||
Change in interest rates
(basis points) |
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
+300 | 7.0 | % | 2.8 | % | 31.4 | % | 15.3 | % | ||||||||||||||||||
+200 | 5.0 | 2.1 | 23.9 | 12.2 | ||||||||||||||||||||||
+100 | 2.7 | 1.3 | 14.0 | 7.5 | ||||||||||||||||||||||
-100 | (1.9) | (2.0) | (25.2) | (12.7) |
Other than bank interest rate risk |
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
Index to Consolidated Financial Statements | Page | ||||
Reports of Independent Registered Public Accounting Firms - HEI | |||||
Reports of Independent Registered Public Accounting Firms - Hawaiian Electric | |||||
HEI | |||||
Consolidated Statements of Income for the years ended December 31, 2020, 2019 and 2018
|
|||||
Consolidated Statements of Comprehensive Income for the years ended December 31, 2020, 2019 and 2018
|
|||||
Consolidated Balance Sheets at December 31, 2020 and 2019
|
|||||
Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2020, 2019 and 2018
|
|||||
Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018
|
|||||
Hawaiian Electric | |||||
Consolidated Statements of Income for the years ended December 31, 2020, 2019 and 2018
|
|||||
Consolidated Statements of Comprehensive Income for the years ended December 31, 2020, 2019 and 2018
|
|||||
Consolidated Balance Sheets at December 31, 2020 and 2019
|
|||||
Consolidated Statements of Capitalization at December 31, 2020 and 2019
|
|||||
Consolidated Statements of Changes in Common Stock Equity for the years ended December 31, 2020, 2019 and 2018
|
|||||
Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018
|
|||||
Notes to Consolidated Financial Statements |
Report of Independent Registered Public Accounting Firm |
Report of Independent Registered Public Accounting Firm
|
Consolidated Statements of Income |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Revenues | |||||||||||||||||
Electric utility | $ | 2,265,320 | $ | 2,545,942 | $ | 2,546,525 | |||||||||||
Bank | 313,511 | 327,917 | 314,275 | ||||||||||||||
Other | 944 | 89 | 49 | ||||||||||||||
Total revenues | 2,579,775 | 2,873,948 | 2,860,849 | ||||||||||||||
Expenses | |||||||||||||||||
Electric utility | 1,996,770 | 2,291,564 | 2,304,864 | ||||||||||||||
Bank (includes $10.8 million gain on sales of properties in 2019)
|
251,702 | 217,008 | 206,040 | ||||||||||||||
Other | 19,810 | 17,355 | 16,589 | ||||||||||||||
Total expenses | 2,268,282 | 2,525,927 | 2,527,493 | ||||||||||||||
Operating income (loss) | |||||||||||||||||
Electric utility | 268,550 | 254,378 | 241,661 | ||||||||||||||
Bank | 61,809 | 110,909 | 108,235 | ||||||||||||||
Other | (18,866) | (17,266) | (16,540) | ||||||||||||||
Total operating income | 311,493 | 348,021 | 333,356 | ||||||||||||||
Retirement defined benefits expense—other than service costs | (3,210) | (2,806) | (5,962) | ||||||||||||||
Interest expense, net – other than on deposit liabilities and other bank borrowings | (88,694) | (90,899) | (88,677) | ||||||||||||||
Allowance for borrowed funds used during construction | 2,992 | 4,453 | 4,867 | ||||||||||||||
Allowance for equity funds used during construction | 8,768 | 11,987 | 10,877 | ||||||||||||||
Gain on sale of investment securities, net | 9,275 | 653 | — | ||||||||||||||
Income before income taxes | 240,624 | 271,409 | 254,461 | ||||||||||||||
Income taxes | 40,910 | 51,637 | 50,797 | ||||||||||||||
Net income | 199,714 | 219,772 | 203,664 | ||||||||||||||
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | ||||||||||||||
Net income for common stock | $ | 197,824 | $ | 217,882 | $ | 201,774 | |||||||||||
Basic earnings per common share | $ | 1.81 | $ | 2.00 | $ | 1.85 | |||||||||||
Diluted earnings per common share | $ | 1.81 | $ | 1.99 | $ | 1.85 | |||||||||||
Weighted-average number of common shares outstanding | 109,140 | 108,949 | 108,855 | ||||||||||||||
Net effect of potentially dilutive shares | 216 | 458 | 291 | ||||||||||||||
Weighted-average shares assuming dilution | 109,356 | 109,407 | 109,146 |
Consolidated Statements of Comprehensive Income |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in thousands) | |||||||||||||||||
Net income for common stock | $ | 197,824 | $ | 217,882 | $ | 201,774 | |||||||||||
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 of $7,008, $10,024 and $(3,468) for 2020, 2019 and 2018, respectively
|
19,143 | 27,382 | (9,472) | ||||||||||||||
Reclassification adjustment for net realized gains included in net income, net of taxes of $(599), $(175) and nil for 2020, 2019 and 2018, respectively
|
(1,638) | (478) | — | ||||||||||||||
Derivatives qualified as cash flow hedges: | |||||||||||||||||
Unrealized interest rate hedging losses, net of taxes of $(607), $(409) and $(151) for 2020, 2019 and 2018, respectively
|
(1,750) | (1,177) | (436) | ||||||||||||||
Retirement benefit plans: | |||||||||||||||||
Net gains (losses) arising during the period, net of taxes of $(20,907), $3,892 and $(9,810) for 2020, 2019 and 2018, respectively
|
(60,529) | 10,914 | (28,101) | ||||||||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes of $8,247, $3,512 and $7,317 for 2020, 2019 and 2018, respectively
|
23,689 | 10,107 | 21,015 | ||||||||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $13,825, $(5,610) and $2,887 for 2020, 2019 and 2018, respectively
|
39,860 | (16,177) | 8,325 | ||||||||||||||
Other comprehensive income (loss), net of taxes | 18,775 | 30,571 | (8,669) | ||||||||||||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ | 216,599 | $ | 248,453 | $ | 193,105 |
Consolidated Balance Sheets |
December 31 | 2020 | 2019 | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash and cash equivalents | $ | 341,421 | $ | 196,813 | |||||||||||||||||||
Restricted cash | 17,558 | 30,872 | |||||||||||||||||||||
Accounts receivable and unbilled revenues, net | 281,216 | 300,794 | |||||||||||||||||||||
Available-for-sale investment securities, at fair value
|
1,970,417 | 1,232,826 | |||||||||||||||||||||
Held-to-maturity investment securities, at amortized cost
|
226,947 | 139,451 | |||||||||||||||||||||
Stock in Federal Home Loan Bank, at cost
|
8,680 | 8,434 | |||||||||||||||||||||
Loans held for investment, net | 5,232,642 | 5,067,821 | |||||||||||||||||||||
Loans held for sale, at lower of cost or fair value | 28,275 | 12,286 | |||||||||||||||||||||
Property, plant and equipment, net | |||||||||||||||||||||||
Land | $ | 103,428 | $ | 100,161 | |||||||||||||||||||
Plant and equipment | 7,851,185 | 7,545,083 | |||||||||||||||||||||
Construction in progress | 214,266 | 229,953 | |||||||||||||||||||||
8,168,879 | 7,875,197 | ||||||||||||||||||||||
Less – accumulated depreciation | (2,903,144) | 5,265,735 | (2,765,569) | 5,109,628 | |||||||||||||||||||
Operating lease right-of-use assets | 153,069 | 199,171 | |||||||||||||||||||||
Regulatory assets | 766,708 | 715,080 | |||||||||||||||||||||
Other | 629,149 | 649,885 | |||||||||||||||||||||
Goodwill | 82,190 | 82,190 | |||||||||||||||||||||
Total assets | $ | 15,004,007 | $ | 13,745,251 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Accounts payable | $ | 182,347 | $ | 220,633 | |||||||||||||||||||
Interest and dividends payable | 23,547 | 24,941 | |||||||||||||||||||||
Deposit liabilities | 7,386,957 | 6,271,902 | |||||||||||||||||||||
Short-term borrowings—other than bank | 129,379 | 185,710 | |||||||||||||||||||||
Other bank borrowings | 89,670 | 115,110 | |||||||||||||||||||||
Long-term debt, net—other than bank | 2,119,129 | 1,964,365 | |||||||||||||||||||||
Deferred income taxes | 395,089 | 379,324 | |||||||||||||||||||||
Operating lease liabilities | 160,432 | 199,571 | |||||||||||||||||||||
Regulatory liabilities | 959,786 | 972,310 | |||||||||||||||||||||
Defined benefit pension and other postretirement benefit plans liability
|
567,438 | 513,287 | |||||||||||||||||||||
Other | 618,438 | 583,545 | |||||||||||||||||||||
Total liabilities | 12,632,212 | 11,430,698 | |||||||||||||||||||||
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: 109,181,124 shares and 108,973,328 shares at December 31, 2020 and 2019, respectively
|
1,678,368 | 1,678,257 | |||||||||||||||||||||
Retained earnings | 660,398 | 622,042 | |||||||||||||||||||||
Accumulated other comprehensive income (loss), net of taxes | |||||||||||||||||||||||
Net unrealized gains on securities | $ | 19,986 | $ | 2,481 | |||||||||||||||||||
Unrealized losses on derivatives | (3,363) | (1,613) | |||||||||||||||||||||
Retirement benefit plans | (17,887) | (1,264) | (20,907) | (20,039) | |||||||||||||||||||
Total shareholders’ equity | 2,337,502 | 2,280,260 | |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 15,004,007 | $ | 13,745,251 |
Consolidated Statements of Changes in Shareholders’ Equity |
Common stock |
Retained
earnings |
Accumulated
other comprehensive income (loss) |
|||||||||||||||||||||||||||
(in thousands, except per share amounts) | Shares | Amount | Total | ||||||||||||||||||||||||||
Balance, December 31, 2017 | 108,788 | $ | 1,662,491 | $ | 476,836 | $ | (41,941) | $ | 2,097,386 | ||||||||||||||||||||
Net income for common stock | — | — | 201,774 | — | 201,774 | ||||||||||||||||||||||||
Other comprehensive loss, net of tax benefits | — | — | — | (8,669) | (8,669) | ||||||||||||||||||||||||
Issuance of common stock: | |||||||||||||||||||||||||||||
Share-based plans | 91 | 2,650 | — | — | 2,650 | ||||||||||||||||||||||||
Share-based expenses and other, net | — | 4,126 | — | — | 4,126 | ||||||||||||||||||||||||
Common stock dividends ($1.24 per share)
|
— | — | (134,987) | — | (134,987) | ||||||||||||||||||||||||
Balance, December 31, 2018 | 108,879 | 1,669,267 | 543,623 | (50,610) | 2,162,280 | ||||||||||||||||||||||||
Net income for common stock | — | — | 217,882 | — | 217,882 | ||||||||||||||||||||||||
Other comprehensive income, net of taxes | — | — | — | 30,571 | 30,571 | ||||||||||||||||||||||||
Issuance of common stock: | |||||||||||||||||||||||||||||
Share-based plans | 94 | 3,092 | — | — | 3,092 | ||||||||||||||||||||||||
Share-based expenses and other, net | — | 5,898 | — | — | 5,898 | ||||||||||||||||||||||||
Common stock dividends ($1.28 per share)
|
— | — | (139,463) | — | (139,463) | ||||||||||||||||||||||||
Balance, December 31, 2019 | 108,973 | 1,678,257 | 622,042 | (20,039) | 2,280,260 | ||||||||||||||||||||||||
Impact of adoption of ASU No. 2016-13 | — | — | (15,372) | — | (15,372) | ||||||||||||||||||||||||
Balance, January 1, 2020 after adoption of
ASU No. 2016-13 |
108,973 | 1,678,257 | 606,670 | (20,039) | 2,264,888 | ||||||||||||||||||||||||
Net income for common stock | — | — | 197,824 | — | 197,824 | ||||||||||||||||||||||||
Other comprehensive income, net of taxes | — | — | — | 18,775 | 18,775 | ||||||||||||||||||||||||
Issuance of common stock: | |||||||||||||||||||||||||||||
Share-based plans | 208 | 3,973 | — | — | 3,973 | ||||||||||||||||||||||||
Share-based expenses and other, net | — | (3,862) | — | — | (3,862) | ||||||||||||||||||||||||
Common stock dividends ($1.32 per share)
|
— | — | (144,096) | — | (144,096) | ||||||||||||||||||||||||
Balance, December 31, 2020 | 109,181 | $ | 1,678,368 | $ | 660,398 | $ | (1,264) | $ | 2,337,502 |
Consolidated Statements of Cash Flows |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in thousands) | |||||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income | $ | 199,714 | $ | 219,772 | $ | 203,664 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||
Depreciation of property, plant and equipment | 238,114 | 229,858 | 214,036 | ||||||||||||||
Other amortization | 52,664 | 48,255 | 41,593 | ||||||||||||||
Provision for credit losses | 50,811 | 23,480 | 14,745 | ||||||||||||||
Loans originated, held for sale | (564,525) | (285,042) | (109,537) | ||||||||||||||
Proceeds from sale of loans, held for sale | 567,652 | 277,119 | 112,182 | ||||||||||||||
Gain on sale of real estate, held for sale | — | (10,762) | — | ||||||||||||||
Gain on sale of investment securities, net | (9,275) | (653) | — | ||||||||||||||
Gain on sale of loans | (23,734) | (4,943) | (1,493) | ||||||||||||||
Deferred income taxes | (1,706) | (15,085) | (9,368) | ||||||||||||||
Share-based compensation expense | 5,810 | 9,986 | 7,792 | ||||||||||||||
Allowance for equity funds used during construction | (8,768) | (11,987) | (10,877) | ||||||||||||||
Other | 1,366 | 18,568 | (521) | ||||||||||||||
Changes in assets and liabilities | |||||||||||||||||
Decrease (increase) in accounts receivable and unbilled revenues, net | 2,533 | 23,933 | (66,526) | ||||||||||||||
Decrease (increase) in fuel oil stock | 34,202 | (11,493) | 7,054 | ||||||||||||||
Decrease in regulatory assets | 1,007 | 71,262 | 9,252 | ||||||||||||||
Increase (decrease) in regulatory liabilities | (16,562) | 1,953 | 37,358 | ||||||||||||||
Increase (decrease) in accounts, interest and dividends payable
|
(20,068) | (3,054) | 21,528 | ||||||||||||||
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | (35,610) | (27,538) | 29,429 | ||||||||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (2,029) | (4,482) | 20,871 | ||||||||||||||
Change in other assets and liabilities, net | (42,189) | (36,677) | (21,870) | ||||||||||||||
Net cash provided by operating activities | 429,407 | 512,470 | 499,312 | ||||||||||||||
Cash flows from investing activities | |||||||||||||||||
Available-for-sale investment securities purchased | (1,361,594) | (108,088) | (224,335) | ||||||||||||||
Principal repayments on available-for-sale investment securities
|
478,351 | 272,949 | 218,930 | ||||||||||||||
Proceeds from sale of available-for-sale investment securities | 169,157 | 19,810 | — | ||||||||||||||
Purchases of held-to-maturity investment securities | (146,738) | (13,057) | (103,184) | ||||||||||||||
Proceeds from repayments or maturities of held-to-maturity investment securities | 59,894 | 15,505 | 5,720 | ||||||||||||||
Purchase of stock from Federal Home Loan Bank | (27,350) | (95,636) | (28,292) | ||||||||||||||
Redemption of stock from Federal Home Loan Bank | 27,104 | 97,160 | 28,040 | ||||||||||||||
Net increase in loans held for investment | (229,311) | (300,210) | (189,352) | ||||||||||||||
Proceeds from sale of commercial loans | — | — | 7,149 | ||||||||||||||
Proceeds from sale of real estate held for sale | — | 21,060 | — | ||||||||||||||
Capital expenditures | (383,895) | (457,520) | (506,770) | ||||||||||||||
Proceeds from sale of low income housing investments | 6,725 | 1 | 473 | ||||||||||||||
Contributions to low income housing investments | (9,403) | (6,974) | (14,499) | ||||||||||||||
Other, net | 3,412 | 13,291 | 14,061 | ||||||||||||||
Net cash used in investing activities | (1,413,648) | (541,709) | (792,059) |
Consolidated Statements of Cash Flows (continued) |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||
Net increase in deposit liabilities | 1,115,055 | 113,050 | 165,880 | ||||||||||||||
Net increase (decrease) in short-term borrowings with original maturities of three months or less
|
(71,219) | 86,718 | (18,999) | ||||||||||||||
Proceeds from issuance of short-term debt | 165,000 | 75,000 | 25,000 | ||||||||||||||
Repayment of short-term debt | (150,000) | (50,000) | (50,000) | ||||||||||||||
Net increase (decrease) in other bank borrowings with original maturities of three months or less | (25,440) | 5,070 | 71,556 | ||||||||||||||
Proceeds from issuance of other bank borrowings | 30,000 | — | — | ||||||||||||||
Repayment of other bank borrowings | (30,000) | — | (50,000) | ||||||||||||||
Proceeds from issuance of long-term debt | 415,997 | 289,349 | 250,000 | ||||||||||||||
Repayment of long-term debt and funds transferred for repayment of long-term debt
|
(178,969) | (287,285) | (53,887) | ||||||||||||||
Withheld shares for employee taxes on vested share-based compensation | (5,700) | (997) | (996) | ||||||||||||||
Common stock dividends | (144,096) | (139,463) | (134,987) | ||||||||||||||
Preferred stock dividends of subsidiaries | (1,890) | (1,890) | (1,890) | ||||||||||||||
Other | (3,203) | (1,836) | (1,603) | ||||||||||||||
Net cash provided by financing activities | 1,115,535 | 87,716 | 200,074 | ||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 131,294 | 58,477 | (92,673) | ||||||||||||||
Cash, cash equivalents and restricted cash, January 1 | 227,685 | 169,208 | 261,881 | ||||||||||||||
Cash, cash equivalents and restricted cash, December 31 | 358,979 | 227,685 | 169,208 | ||||||||||||||
Less: Restricted cash | (17,558) | (30,872) | — | ||||||||||||||
Cash and cash equivalents, December 31 | $ | 341,421 | $ | 196,813 | $ | 169,208 |
Consolidated Statements of Income |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in thousands) | |||||||||||||||||
Revenues | $ | 2,265,320 | $ | 2,545,942 | $ | 2,546,525 | |||||||||||
Expenses | |||||||||||||||||
Fuel oil | 515,274 | 720,709 | 760,528 | ||||||||||||||
Purchased power | 568,749 | 633,256 | 639,307 | ||||||||||||||
Other operation and maintenance | 474,192 | 481,737 | 461,491 | ||||||||||||||
Depreciation | 222,733 | 215,731 | 203,626 | ||||||||||||||
Taxes, other than income taxes | 215,822 | 240,131 | 239,912 | ||||||||||||||
Total expenses | 1,996,770 | 2,291,564 | 2,304,864 | ||||||||||||||
Operating income | 268,550 | 254,378 | 241,661 | ||||||||||||||
Allowance for equity funds used during construction | 8,768 | 11,987 | 10,877 | ||||||||||||||
Retirement defined benefits expense—other than service costs | (763) | (2,836) | (3,631) | ||||||||||||||
Interest expense and other charges, net | (67,794) | (70,842) | (73,348) | ||||||||||||||
Allowance for borrowed funds used during construction | 2,992 | 4,453 | 4,867 | ||||||||||||||
Income before income taxes | 211,753 | 197,140 | 180,426 | ||||||||||||||
Income taxes | 40,418 | 38,305 | 34,778 | ||||||||||||||
Net income | 171,335 | 158,835 | 145,648 | ||||||||||||||
Preferred stock dividends of subsidiaries | 915 | 915 | 915 | ||||||||||||||
Net income attributable to Hawaiian Electric | 170,420 | 157,920 | 144,733 | ||||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | ||||||||||||||
Net income for common stock | $ | 169,340 | $ | 156,840 | $ | 143,653 |
Consolidated Statements of Comprehensive Income |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in thousands) | |||||||||||||||||
Net income for common stock | $ | 169,340 | $ | 156,840 | $ | 143,653 | |||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||
Retirement benefit plans: | |||||||||||||||||
Net gains (losses) arising during the period, net of taxes of $(21,868), $1,821 and $(9,024) for 2020, 2019 and 2018, respectively
|
(63,050) | 5,249 | (26,019) | ||||||||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes of $7,474, $3,312 and $6,594 for 2020, 2019 and 2018, respectively
|
21,550 | 9,550 | 19,012 | ||||||||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $13,825, $(5,610), and $2,887 for 2020, 2019 and 2018, respectively
|
39,860 | (16,177) | 8,325 | ||||||||||||||
Other comprehensive income (loss), net of taxes | (1,640) | (1,378) | 1,318 | ||||||||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | $ | 167,700 | $ | 155,462 | $ | 144,971 |
Consolidated Balance Sheets |
December 31 | 2020 | 2019 | |||||||||
(in thousands) | |||||||||||
Assets | |||||||||||
Property, plant and equipment | |||||||||||
Utility property, plant and equipment | |||||||||||
Land | $ | 51,611 | $ | 51,816 | |||||||
Plant and equipment | 7,509,343 | 7,240,288 | |||||||||
Less accumulated depreciation | (2,819,079) | (2,690,157) | |||||||||
Construction in progress | 188,342 | 193,074 | |||||||||
Utility property, plant and equipment, net | 4,930,217 | 4,795,021 | |||||||||
Nonutility property, plant and equipment, less accumulated depreciation of $115 and $111 as of December 31, 2020 and 2019, respectively
|
6,953 | 6,956 | |||||||||
Total property, plant and equipment, net | 4,937,170 | 4,801,977 | |||||||||
Current assets | |||||||||||
Cash and cash equivalents | 47,360 | 11,022 | |||||||||
Restricted cash | 15,966 | 30,872 | |||||||||
Customer accounts receivable, net | 147,832 | 152,790 | |||||||||
Accrued unbilled revenues, net | 101,036 | 117,227 | |||||||||
Other accounts receivable, net | 7,673 | 11,568 | |||||||||
Fuel oil stock, at average cost | 58,238 | 91,937 | |||||||||
Materials and supplies, at average cost | 67,344 | 60,702 | |||||||||
Prepayments and other | 44,083 | 116,980 | |||||||||
Regulatory assets | 30,435 | 30,710 | |||||||||
Total current assets | 519,967 | 623,808 | |||||||||
Other long-term assets | |||||||||||
Operating lease right-of-use-assets | 127,654 | 176,809 | |||||||||
Regulatory assets | 736,273 | 684,370 | |||||||||
Other | 136,309 | 101,718 | |||||||||
Total other long-term assets | 1,000,236 | 962,897 | |||||||||
Total assets
|
$ | 6,457,373 | $ | 6,388,682 | |||||||
Capitalization and liabilities | |||||||||||
Capitalization (see Consolidated Statements of Capitalization)
|
|||||||||||
Common stock equity | $ | 2,141,918 | $ | 2,047,352 | |||||||
Cumulative preferred stock – not subject to mandatory redemption | 34,293 | 34,293 | |||||||||
Commitments and contingencies (Note 3) | |||||||||||
Long-term debt, net | 1,561,302 | 1,401,714 | |||||||||
Total capitalization | 3,737,513 | 3,483,359 | |||||||||
Current liabilities | |||||||||||
Current portion of operating lease liabilities | 64,730 | 63,707 | |||||||||
Current portion of long-term debt, net | — | 95,953 | |||||||||
Short-term borrowings from non-affiliate | 49,979 | 88,987 | |||||||||
Accounts payable | 133,849 | 187,770 | |||||||||
Interest and preferred dividends payable | 20,350 | 20,728 | |||||||||
Taxes accrued, including revenue taxes | 192,524 | 207,992 | |||||||||
Regulatory liabilities | 37,301 | 30,724 | |||||||||
Other | 74,262 | 67,305 | |||||||||
Total current liabilities | 572,995 | 763,166 | |||||||||
Deferred credits and other liabilities | |||||||||||
Operating lease liabilities | 69,494 | 113,400 | |||||||||
Deferred income taxes | 397,798 | 377,150 | |||||||||
Regulatory liabilities | 922,485 | 941,586 | |||||||||
Unamortized tax credits | 111,915 | 117,868 | |||||||||
Defined benefit pension and other postretirement benefit plans liability | 530,532 | 478,763 | |||||||||
Other | 114,641 | 113,390 | |||||||||
Total deferred credits and other liabilities | 2,146,865 | 2,142,157 | |||||||||
Total capitalization and liabilities
|
$ | 6,457,373 | $ | 6,388,682 |
Consolidated Statements of Capitalization
|
December 31 | 2020 | 2019 | ||||||||||||
(dollars in thousands, except par value) | ||||||||||||||
Common stock equity | ||||||||||||||
Common stock of $6 2/3 par value | ||||||||||||||
Authorized: 50,000,000 shares. Outstanding: 17,324,376 shares and
|
||||||||||||||
17,048,783 shares at December 31, 2020 and 2019, respectively
|
$ | 115,515 | $ | 113,678 | ||||||||||
Premium on capital stock | 746,987 | 714,824 | ||||||||||||
Retained earnings | 1,282,335 | 1,220,129 | ||||||||||||
Accumulated other comprehensive loss, net of tax benefits-retirement benefit plans | (2,919) | (1,279) | ||||||||||||
Common stock equity | 2,141,918 | 2,047,352 |
Consolidated Statements of Capitalization (continued)
|
December 31 | 2020 | 2019 | |||||||||
(in thousands) | |||||||||||
Long-term debt | |||||||||||
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | |||||||||||
3.50%, Series 2019, due 2049
|
$ | 80,000 | $ | 80,000 | |||||||
3.20%, Refunding series 2019, due 2039
|
150,000 | 150,000 | |||||||||
3.10%, Refunding series 2017A, due 2026
|
125,000 | 125,000 | |||||||||
4.00%, Refunding series 2017B, due 2037
|
140,000 | 140,000 | |||||||||
3.25%, Refunding series 2015, due 2025
|
47,000 | 47,000 | |||||||||
Total obligations to the State of Hawaii | $ | 542,000 | $ | 542,000 | |||||||
Other long-term debt – unsecured: | |||||||||||
Taxable senior notes: | |||||||||||
3.96%, Series 2020A, 2020B and 2020C, due 2050
|
$ | 50,000 | $ | — | |||||||
3.31%, Series 2020A and 2020B, due 2030
|
110,000 | — | |||||||||
4.21%, Series 2019A, due 2034
|
50,000 | 50,000 | |||||||||
4.38%, Series 2018A, due 2028
|
67,500 | 67,500 | |||||||||
4.53%, Series 2018B, due 2033
|
17,500 | 17,500 | |||||||||
4.72%, Series 2018C, due 2048
|
15,000 | 15,000 | |||||||||
4.31%, Series 2017A, due 2047
|
50,000 | 50,000 | |||||||||
4.54%, Series 2016A, due 2046
|
40,000 | 40,000 | |||||||||
5.23%, Series 2015A, due 2045
|
80,000 | 80,000 | |||||||||
3.83%, Series 2013A, due 2020 - paid in 2020
|
— | 14,000 | |||||||||
4.45%, Series 2013A and 2013B, due 2022
|
52,000 | 52,000 | |||||||||
4.84%, Series 2013A, 2013B and 2013C, due 2027
|
100,000 | 100,000 | |||||||||
5.65%, Series 2013B and 2013C, due 2043
|
70,000 | 70,000 | |||||||||
4.03%, Series 2012B, due 2020 - paid in 2020
|
— | 82,000 | |||||||||
4.55%, Series 2012B and 2012C, due 2023
|
100,000 | 100,000 | |||||||||
4.72%, Series 2012D, due 2029
|
35,000 | 35,000 | |||||||||
5.39%, Series 2012E, due 2042
|
150,000 | 150,000 | |||||||||
4.53%, Series 2012F, due 2032
|
40,000 | 40,000 | |||||||||
Total taxable senior notes | 1,027,000 | 963,000 | |||||||||
Total long-term debt | 1,569,000 | 1,505,000 | |||||||||
Less unamortized debt issuance costs | 7,698 | 7,333 | |||||||||
Less current portion long-term debt, net of unamortized debt issuance costs | — | 95,953 | |||||||||
Long-term debt, net | 1,561,302 | 1,401,714 | |||||||||
Total capitalization | $ | 3,737,513 | $ | 3,483,359 |
Consolidated Statements of Changes in Common Stock Equity
|
Common stock |
Premium
on capital stock |
Retained
earnings |
Accumulated
other comprehensive income (loss) |
||||||||||||||||||||||||||||||||
(in thousands) | Shares | Amount | Total | ||||||||||||||||||||||||||||||||
Balance, December 31, 2017 | 16,142 | $ | 107,634 | $ | 614,675 | $ | 1,124,193 | $ | (1,219) | $ | 1,845,283 | ||||||||||||||||||||||||
Net income for common stock | — | — | — | 143,653 | — | 143,653 | |||||||||||||||||||||||||||||
Other comprehensive income, net of taxes | — | — | — | — | 1,318 | 1,318 | |||||||||||||||||||||||||||||
Issuance of common stock, net of expenses | 609 | 4,062 | 66,630 | — | — | 70,692 | |||||||||||||||||||||||||||||
Common stock dividends | — | — | — | (103,305) | — | (103,305) | |||||||||||||||||||||||||||||
Balance, December 31, 2018 | 16,751 | 111,696 | 681,305 | 1,164,541 | 99 | 1,957,641 | |||||||||||||||||||||||||||||
Net income for common stock | — | — | — | 156,840 | — | 156,840 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax benefits | — | — | — | — | (1,378) | (1,378) | |||||||||||||||||||||||||||||
Issuance of common stock, net of expenses | 297 | 1,982 | 33,519 | — | — | 35,501 | |||||||||||||||||||||||||||||
Common stock dividends | — | — | — | (101,252) | — | (101,252) | |||||||||||||||||||||||||||||
Balance, December 31, 2019 | 17,048 | 113,678 | 714,824 | 1,220,129 | (1,279) | 2,047,352 | |||||||||||||||||||||||||||||
Net income for common stock | — | — | — | 169,340 | — | 169,340 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax benefits | — | — | — | — | (1,640) | (1,640) | |||||||||||||||||||||||||||||
Issuance of common stock, net of expenses | 276 | 1,837 | 32,163 | — | — | 34,000 | |||||||||||||||||||||||||||||
Common stock dividends | — | — | — | (107,134) | — | (107,134) | |||||||||||||||||||||||||||||
Balance, December 31, 2020 | 17,324 | $ | 115,515 | $ | 746,987 | $ | 1,282,335 | $ | (2,919) | $ | 2,141,918 |
Consolidated Statements of Cash Flows
|
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in thousands) | |||||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income | $ | 171,335 | $ | 158,835 | $ | 145,648 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities
|
|||||||||||||||||
Depreciation of property, plant and equipment | 222,733 | 215,731 | 203,626 | ||||||||||||||
Other amortization | 33,746 | 29,631 | 26,602 | ||||||||||||||
Deferred income taxes | 3,151 | (16,284) | (7,982) | ||||||||||||||
State refundable credit | (9,961) | (8,369) | (6,239) | ||||||||||||||
Bad debt expense | 2,115 | 2,150 | 2,205 | ||||||||||||||
Allowance for equity funds used during construction | (8,768) | (11,987) | (10,877) | ||||||||||||||
Accrued environmental reserve | 6,556 | 406 | 273 | ||||||||||||||
Other | 2,610 | 27,459 | 4,669 | ||||||||||||||
Changes in assets and liabilities | |||||||||||||||||
Decrease (increase) in accounts receivable | (7,286) | 18,822 | (53,086) | ||||||||||||||
Decrease (increase) in accrued unbilled revenues | 15,285 | 4,495 | (14,720) | ||||||||||||||
Decrease (increase) in fuel oil stock | 33,699 | (12,002) | 6,938 | ||||||||||||||
Increase in materials and supplies | (6,642) | (5,498) | (807) | ||||||||||||||
Decrease in regulatory assets | 1,007 | 71,262 | 9,252 | ||||||||||||||
Increase (decrease) in regulatory liabilities | (16,562) | 1,953 | 37,358 | ||||||||||||||
Increase (decrease) in accounts payable | (33,129) | (2,051) | 24,358 | ||||||||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (37,180) | (28,523) | 25,036 | ||||||||||||||
Increase (decrease) in defined benefit pension and other postretirement
benefit plans liability |
(4,306) | (4,448) | 18,746 | ||||||||||||||
Change in other assets and liabilities | (31,852) | (17,626) | (17,387) | ||||||||||||||
Net cash provided by operating activities | 336,551 | 423,956 | 393,613 | ||||||||||||||
Cash flows from investing activities | |||||||||||||||||
Capital expenditures | (350,864) | (419,898) | (415,264) | ||||||||||||||
Other | 6,070 | 11,374 | 10,082 | ||||||||||||||
Net cash used in investing activities | (344,794) | (408,524) | (405,182) | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||
Common stock dividends | (107,134) | (101,252) | (103,305) | ||||||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,995) | (1,995) | (1,995) | ||||||||||||||
Proceeds from issuance of common stock | 34,000 | 35,500 | 70,700 | ||||||||||||||
Proceeds from issuance of long-term debt | 255,000 | 280,000 | 100,000 | ||||||||||||||
Repayment of long-term debt and funds transferred for repayment of long-term debt | (109,000) | (283,546) | (50,000) | ||||||||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (38,987) | 38,987 | (4,999) | ||||||||||||||
Proceeds from issuance of short-term debt | 100,000 | 75,000 | 25,000 | ||||||||||||||
Repayment of short-term debt | (100,000) | (50,000) | — | ||||||||||||||
Other | (2,209) | (2,109) | (472) | ||||||||||||||
Net cash provided by (used in) financing activities | 29,675 | (9,415) | 34,929 | ||||||||||||||
Net increase in cash, cash equivalents and restricted cash | 21,432 | 6,017 | 23,360 | ||||||||||||||
Cash, cash equivalents and restricted cash, January 1 | 41,894 | 35,877 | 12,517 | ||||||||||||||
Cash, cash equivalents and restricted cash, December 31 | 63,326 | 41,894 | 35,877 | ||||||||||||||
Less: Restricted cash | (15,966) | (30,872) | — | ||||||||||||||
Cash and cash equivalents, December 31 | $ | 47,360 | $ | 11,022 | $ | 35,877 |
Note 1 · Summary of significant accounting policies
|
General |
January 1, 2020 | ||||||||||||||||||||
(in thousands) | Pre-ASU No. 2016-13 adoption | Impact of ASU No. 2016-13 | As reported under ASU No. 2016-13 | |||||||||||||||||
HEI consolidated | ||||||||||||||||||||
Loans held for investments, net1
|
$ | 5,067,821 | $ | (19,441) | $ | 5,048,380 | ||||||||||||||
Total assets | 13,745,251 | (19,441) | 13,725,810 | |||||||||||||||||
Deferred income taxes | 379,324 | (5,628) | 373,696 | |||||||||||||||||
Other1
|
583,545 | 1,559 | 585,104 | |||||||||||||||||
Total liabilities | 11,430,698 | (4,069) | 11,426,629 | |||||||||||||||||
Retained earnings | 622,042 | (15,372) | 606,670 | |||||||||||||||||
Total shareholders’ equity | 2,280,260 | (15,372) | 2,264,888 | |||||||||||||||||
Total liabilities and shareholders’ equity | 13,745,251 | (19,441) | 13,725,810 | |||||||||||||||||
Electric utility |
Bank (HEI only) |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in millions) | |||||||||||||||||
Amounts in income taxes related to low-income housing tax credit investments
|
|||||||||||||||||
Amortization recognized in the provision for income taxes | $ | (9.6) | $ | (7.9) | $ | (7.7) | |||||||||||
Tax credits and other tax benefits recognized in the provision for income taxes | 13.7 | 11.9 | 10.9 | ||||||||||||||
Net benefit to income tax expense | $ | 4.1 | $ | 4.0 | $ | 3.2 |
Note 2 · Segment financial information
|
Electric utility |
Bank |
Other |
(in thousands) | Electric utility | Bank | Other | Total | |||||||||||||||||||
2020 | |||||||||||||||||||||||
Revenues from external customers | $ | 2,265,281 | $ | 313,511 | $ | 983 | $ | 2,579,775 | |||||||||||||||
Intersegment revenues (eliminations) | 39 | — | (39) | — | |||||||||||||||||||
Revenues | 2,265,320 | 313,511 | 944 | 2,579,775 | |||||||||||||||||||
Depreciation and amortization | 256,479 | 29,349 | 4,950 | 290,778 | |||||||||||||||||||
Interest expense, net | 67,794 | 11,114 | 20,900 | 99,808 | |||||||||||||||||||
Income (loss) before income taxes | 211,753 | 69,271 | (40,400) | 240,624 | |||||||||||||||||||
Income taxes (benefit) | 40,418 | 11,688 | (11,196) | 40,910 | |||||||||||||||||||
Net income (loss) | 171,335 | 57,583 | (29,204) | 199,714 | |||||||||||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105) | 1,890 | |||||||||||||||||||
Net income (loss) for common stock | 169,340 | 57,583 | (29,099) | 197,824 | |||||||||||||||||||
Capital expenditures1
|
350,864 | 12,203 | 20,828 | 383,895 | |||||||||||||||||||
Assets (at December 31, 2020) | 6,457,373 | 8,396,533 | 150,101 | 15,004,007 | |||||||||||||||||||
2019 | |||||||||||||||||||||||
Revenues from external customers | $ | 2,545,865 | $ | 327,917 | $ | 166 | $ | 2,873,948 | |||||||||||||||
Intersegment revenues (eliminations) | 77 | — | (77) | — | |||||||||||||||||||
Revenues | 2,545,942 | 327,917 | 89 | 2,873,948 | |||||||||||||||||||
Depreciation and amortization | 245,362 | 28,675 | 4,076 | 278,113 | |||||||||||||||||||
Interest expense, net | 70,842 | 18,440 | 20,057 | 109,339 | |||||||||||||||||||
Income (loss) before income taxes | 197,140 | 112,034 | (37,765) | 271,409 | |||||||||||||||||||
Income taxes (benefit) | 38,305 | 23,061 | (9,729) | 51,637 | |||||||||||||||||||
Net income (loss) | 158,835 | 88,973 | (28,036) | 219,772 | |||||||||||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105) | 1,890 | |||||||||||||||||||
Net income (loss) for common stock | 156,840 | 88,973 | (27,931) | 217,882 | |||||||||||||||||||
Capital expenditures1
|
419,898 | 24,175 | 13,447 | 457,520 | |||||||||||||||||||
Assets (at December 31, 2019) | 6,388,682 | 7,233,017 | 123,552 | 13,745,251 | |||||||||||||||||||
2018 | |||||||||||||||||||||||
Revenues from external customers | $ | 2,546,472 | $ | 314,275 | $ | 102 | $ | 2,860,849 | |||||||||||||||
Intersegment revenues (eliminations) | 53 | — | (53) | — | |||||||||||||||||||
Revenues | 2,546,525 | 314,275 | 49 | 2,860,849 | |||||||||||||||||||
Depreciation and amortization | 230,228 | 21,443 | 3,958 | 255,629 | |||||||||||||||||||
Interest expense, net | 73,348 | 15,539 | 15,329 | 104,216 | |||||||||||||||||||
Income (loss) before income taxes | 180,426 | 106,578 | (32,543) | 254,461 | |||||||||||||||||||
Income taxes (benefit) | 34,778 | 24,069 | (8,050) | 50,797 | |||||||||||||||||||
Net income (loss) | 145,648 | 82,509 | (24,493) | 203,664 | |||||||||||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105) | 1,890 | |||||||||||||||||||
Net income (loss) for common stock | 143,653 | 82,509 | (24,388) | 201,774 | |||||||||||||||||||
Capital expenditures1
|
415,264 | 72,666 | 18,840 | 537,369 | |||||||||||||||||||
Assets (at December 31, 2018) | 5,967,503 | 7,027,894 | 108,654 | 13,104,051 |
Note 3 · Electric utility segment
|
December 31 | 2020 | 2019 | |||||||||
(in thousands) | |||||||||||
Retirement benefit plans (balance primarily varies with plans’ funded statuses) | $ | 592,644 | $ | 554,485 | |||||||
Income taxes (1-55 years)
|
96,171 | 102,612 | |||||||||
Decoupling revenue balancing account and RAM (1-2 years)
|
10,432 | — | |||||||||
Unamortized expense and premiums on retired debt and equity issuances (1-19 years; 1-18 years remaining)
|
8,654 | 10,228 | |||||||||
Vacation earned, but not yet taken (1 year)
|
15,665 | 12,535 | |||||||||
COVID-19 related costs (to be determined by PUC) | 18,032 | — | |||||||||
Other (1-39 years remaining)
|
25,110 | 35,220 | |||||||||
Total regulatory assets | $ | 766,708 | $ | 715,080 | |||||||
Included in: | |||||||||||
Current assets | $ | 30,435 | $ | 30,710 | |||||||
Long-term assets | 736,273 | 684,370 | |||||||||
Total regulatory assets | $ | 766,708 | $ | 715,080 |
December 31 | 2020 | 2019 | |||||||||
(in thousands) | |||||||||||
Cost of removal in excess of salvage value (1-79 years)
|
$ | 541,730 | $ | 521,977 | |||||||
Income taxes (1-55 years)
|
360,426 | 386,990 | |||||||||
Decoupling revenue balancing account and RAM (1-2 years)
|
1,957 | 16,370 | |||||||||
Retirement benefit plans (balance primarily varies with plans’ funded statuses)
|
29,759 | 21,707 | |||||||||
Other (1-18 years remaining)
|
25,914 | 25,266 | |||||||||
Total regulatory liabilities | $ | 959,786 | $ | 972,310 | |||||||
Included in: | |||||||||||
Current liabilities | $ | 37,301 | $ | 30,724 | |||||||
Long-term liabilities | 922,485 | 941,586 | |||||||||
Total regulatory liabilities | $ | 959,786 | $ | 972,310 |
December 31, 2020 |
Voluntary
liquidation price |
Redemption
price |
|||||||||
Series | |||||||||||
C, D, E, H, J and K (Hawaiian Electric) | $ | 20 | $ | 21 | |||||||
I (Hawaiian Electric) | 20 | 20 | |||||||||
G (Hawaii Electric Light) | 100 | 100 | |||||||||
H (Maui Electric) | 100 | 100 |
Years ended December 31 | 2020 | 2019 | 2018 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Kalaeloa | $ | 149 | $ | 214 | $ | 216 | ||||||||||||||
AES Hawaii | 133 | 139 | 140 | |||||||||||||||||
HPOWER | 70 | 76 | 69 | |||||||||||||||||
Hamakua Energy | 50 | 68 | 56 | |||||||||||||||||
Puna Geothermal Venture | 1 | — | 15 | |||||||||||||||||
Wind IPPs | 105 | 95 | 107 | |||||||||||||||||
Solar IPPs | 57 | 36 | 29 | |||||||||||||||||
Other IPPs1
|
4 | 5 | 7 | |||||||||||||||||
Total IPPs | $ | 569 | $ | 633 | $ | 639 |
(in thousands) | 2020 | 2019 | |||||||||
Balance, January 1 | $ | 10,324 | $ | 8,426 | |||||||
Accretion expense | 405 | 312 | |||||||||
Liabilities incurred | — | 1,594 | |||||||||
Liabilities settled | (37) | (8) | |||||||||
Balance, December 31 | $ | 10,692 | $ | 10,324 |
(in millions) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Total | ||||||||||||||||||||||
2020 Annual incremental RAM adjusted revenues | $ | 20.6 | $ | 3.2 | $ | 5.7 | $ | 29.5 | ||||||||||||||||||
Annual change in accrued RBA balance as of December 31, 2019 (and associated revenue taxes) which incorporates MPIR recovery | (46.5) | (9.9) | (11.0) | (67.4) | ||||||||||||||||||||||
Incremental Performance Incentive Mechanisms (net) | 2.2 | (0.1) | (0.1) | 2.0 | ||||||||||||||||||||||
Net annual incremental amount to be refunded under the tariffs | $ | (23.7) | $ | (6.8) | $ | (5.4) | $ | (35.9) | ||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric |
Other subsidiaries
|
Consolidating adjustments |
Hawaiian Electric
Consolidated
|
||||||||||||||||||||||||||||||||
Revenues | $ | 1,608,305 | 334,221 | 323,430 | — | (636) | [1] | $ | 2,265,320 | |||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||
Fuel oil | 354,087 | 72,202 | 88,985 | — | — | 515,274 | ||||||||||||||||||||||||||||||||
Purchased power | 446,672 | 73,120 | 48,957 | — | — | 568,749 | ||||||||||||||||||||||||||||||||
Other operation and maintenance | 311,781 | 73,746 | 88,665 | — | — | 474,192 | ||||||||||||||||||||||||||||||||
Depreciation | 151,387 | 39,041 | 32,305 | — | — | 222,733 | ||||||||||||||||||||||||||||||||
Taxes, other than income taxes | 154,191 | 31,181 | 30,450 | — | — | 215,822 | ||||||||||||||||||||||||||||||||
Total expenses | 1,418,118 | 289,290 | 289,362 | — | — | 1,996,770 | ||||||||||||||||||||||||||||||||
Operating income | 190,187 | 44,931 | 34,068 | — | (636) | 268,550 | ||||||||||||||||||||||||||||||||
Allowance for equity funds used during construction | 7,335 | 543 | 890 | — | — | 8,768 | ||||||||||||||||||||||||||||||||
Equity in earnings of subsidiaries | 47,504 | — | — | — | (47,504) | [2] | — | |||||||||||||||||||||||||||||||
Retirement defined benefits expense—other than service costs | (1,294) | 672 | (141) | — | — | (763) | ||||||||||||||||||||||||||||||||
Interest expense and other charges, net | (48,775) | (10,004) | (9,651) | — | 636 | [1] | (67,794) | |||||||||||||||||||||||||||||||
Allowance for borrowed funds used during construction | 2,540 | 160 | 292 | — | — | 2,992 | ||||||||||||||||||||||||||||||||
Income before income taxes | 197,497 | 36,302 | 25,458 | — | (47,504) | 211,753 | ||||||||||||||||||||||||||||||||
Income taxes | 27,077 | 8,275 | 5,066 | — | — | 40,418 | ||||||||||||||||||||||||||||||||
Net income | 170,420 | 28,027 | 20,392 | — | (47,504) | 171,335 | ||||||||||||||||||||||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | ||||||||||||||||||||||||||||||||
Net income attributable to Hawaiian Electric | 170,420 | 27,493 | 20,011 | — | (47,504) | 170,420 | ||||||||||||||||||||||||||||||||
Preferred stock dividends of Hawaiian Electric
|
1,080 | — | — | — | — | 1,080 | ||||||||||||||||||||||||||||||||
Net income for common stock | $ | 169,340 | $ | 27,493 | $ | 20,011 | $ | — | $ | (47,504) | $ | 169,340 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries |
Consolidating
adjustments |
Hawaiian Electric
Consolidated |
||||||||||||||||||||||||||||||||
Net income for common stock | $ | 169,340 | 27,493 | 20,011 | — | (47,504) | $ | 169,340 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes:
|
||||||||||||||||||||||||||||||||||||||
Retirement benefit plans: | ||||||||||||||||||||||||||||||||||||||
Net losses arising during the period, net of tax benefits | (63,050) | (9,424) | (10,897) | — | 20,321 | [1] | (63,050) | |||||||||||||||||||||||||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
|
21,550 | 3,179 | 2,763 | — | (5,942) | [1] | 21,550 | |||||||||||||||||||||||||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
39,860 | 6,025 | 8,000 | — | (14,025) | [1] | 39,860 | |||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax benefits | (1,640) | (220) | (134) | — | 354 | (1,640) | ||||||||||||||||||||||||||||||||
Comprehensive income attributable to common shareholder
|
$ | 167,700 | 27,273 | 19,877 | — | (47,150) | $ | 167,700 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric |
Other subsidiaries
|
Consolidating adjustments |
Hawaiian Electric
Consolidated
|
||||||||||||||||||||||||||||||||
Revenues | $ | 1,803,698 | 364,590 | 378,202 | — | (548) | [1] | $ | 2,545,942 | |||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||
Fuel oil | 494,728 | 84,565 | 141,416 | — | — | 720,709 | ||||||||||||||||||||||||||||||||
Purchased power | 494,215 | 90,989 | 48,052 | — | — | 633,256 | ||||||||||||||||||||||||||||||||
Other operation and maintenance | 319,771 | 76,091 | 85,875 | — | — | 481,737 | ||||||||||||||||||||||||||||||||
Depreciation | 143,470 | 41,812 | 30,449 | — | — | 215,731 | ||||||||||||||||||||||||||||||||
Taxes, other than income taxes | 170,979 | 33,787 | 35,365 | — | — | 240,131 | ||||||||||||||||||||||||||||||||
Total expenses | 1,623,163 | 327,244 | 341,157 | — | — | 2,291,564 | ||||||||||||||||||||||||||||||||
Operating income | 180,535 | 37,346 | 37,045 | — | (548) | 254,378 | ||||||||||||||||||||||||||||||||
Allowance for equity funds used
during construction
|
9,955 | 816 | 1,216 | — | — | 11,987 | ||||||||||||||||||||||||||||||||
Equity in earnings of subsidiaries | 43,167 | — | — | — | (43,167) | [2] | — | |||||||||||||||||||||||||||||||
Retirement defined benefits expense—other than service costs | (2,287) | (422) | (127) | — | — | (2,836) | ||||||||||||||||||||||||||||||||
Interest expense and other charges, net | (51,199) | (10,741) | (9,450) | — | 548 | [1] | (70,842) | |||||||||||||||||||||||||||||||
Allowance for borrowed funds used during construction | 3,666 | 342 | 445 | — | — | 4,453 | ||||||||||||||||||||||||||||||||
Income before income taxes | 183,837 | 27,341 | 29,129 | — | (43,167) | 197,140 | ||||||||||||||||||||||||||||||||
Income taxes | 25,917 | 5,990 | 6,398 | — | — | 38,305 | ||||||||||||||||||||||||||||||||
Net income | 157,920 | 21,351 | 22,731 | — | (43,167) | 158,835 | ||||||||||||||||||||||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | ||||||||||||||||||||||||||||||||
Net income attributable to Hawaiian Electric | 157,920 | 20,817 | 22,350 | — | (43,167) | 157,920 | ||||||||||||||||||||||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | — | — | — | — | 1,080 | ||||||||||||||||||||||||||||||||
Net income for common stock | $ | 156,840 | $ | 20,817 | $ | 22,350 | — | (43,167) | $ | 156,840 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments |
Hawaiian Electric
Consolidated |
||||||||||||||||||||||||||||||||
Net income for common stock | $ | 156,840 | 20,817 | 22,350 | — | (43,167) | $ | 156,840 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes:
|
||||||||||||||||||||||||||||||||||||||
Retirement benefit plans: | ||||||||||||||||||||||||||||||||||||||
Net gains (losses) arising during the period, net of taxes | 5,249 | 373 | (204) | — | (169) | [1] | 5,249 | |||||||||||||||||||||||||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
|
9,550 | 1,455 | 1,182 | — | (2,637) | [1] | 9,550 | |||||||||||||||||||||||||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
(16,177) | (1,840) | (1,152) | — | 2,992 | [1] | (16,177) | |||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax benefits | (1,378) | (12) | (174) | — | 186 | (1,378) | ||||||||||||||||||||||||||||||||
Comprehensive income attributable to common shareholder
|
$ | 155,462 | 20,805 | 22,176 | — | (42,981) | $ | 155,462 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric |
Other subsidiaries
|
Consolidating adjustments |
Hawaiian Electric
Consolidated
|
||||||||||||||||||||||||||||||||
Revenues | $ | 1,802,550 | 375,493 | 368,700 | — | (218) | [1] | $ | 2,546,525 | |||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||
Fuel oil | 523,706 | 90,792 | 146,030 | — | — | 760,528 | ||||||||||||||||||||||||||||||||
Purchased power | 494,450 | 95,838 | 49,019 | — | — | 639,307 | ||||||||||||||||||||||||||||||||
Other operation and maintenance | 313,346 | 70,396 | 77,749 | — | — | 461,491 | ||||||||||||||||||||||||||||||||
Depreciation | 137,410 | 40,235 | 25,981 | — | — | 203,626 | ||||||||||||||||||||||||||||||||
Taxes, other than income taxes | 170,363 | 34,850 | 34,699 | — | — | 239,912 | ||||||||||||||||||||||||||||||||
Total expenses | 1,639,275 | 332,111 | 333,478 | — | — | 2,304,864 | ||||||||||||||||||||||||||||||||
Operating income | 163,275 | 43,382 | 35,222 | — | (218) | 241,661 | ||||||||||||||||||||||||||||||||
Allowance for equity funds used
during construction
|
9,208 | 478 | 1,191 | — | — | 10,877 | ||||||||||||||||||||||||||||||||
Equity in earnings of subsidiaries | 45,393 | — | — | — | (45,393) | [2] | — | |||||||||||||||||||||||||||||||
Retirement defined benefits expense—other than service costs
|
(2,649) | (417) | (565) | — | — | (3,631) | ||||||||||||||||||||||||||||||||
Interest expense and other charges, net | (52,180) | (11,836) | (9,550) | — | 218 | [1] | (73,348) | |||||||||||||||||||||||||||||||
Allowance for borrowed funds used during construction
|
4,019 | 276 | 572 | — | — | 4,867 | ||||||||||||||||||||||||||||||||
Income before income taxes | 167,066 | 31,883 | 26,870 | — | (45,393) | 180,426 | ||||||||||||||||||||||||||||||||
Income taxes | 22,333 | 6,868 | 5,577 | — | — | 34,778 | ||||||||||||||||||||||||||||||||
Net income | 144,733 | 25,015 | 21,293 | — | (45,393) | 145,648 | ||||||||||||||||||||||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | ||||||||||||||||||||||||||||||||
Net income attributable to Hawaiian Electric
|
144,733 | 24,481 | 20,912 | — | (45,393) | 144,733 | ||||||||||||||||||||||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | — | — | — | — | 1,080 | ||||||||||||||||||||||||||||||||
Net income for common stock | $ | 143,653 | 24,481 | 20,912 | — | (45,393) | $ | 143,653 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments |
Hawaiian Electric
Consolidated |
||||||||||||||||||||||||||||||||
Net income for common stock | $ | 143,653 | 24,481 | 20,912 | — | (45,393) | $ | 143,653 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes:
|
||||||||||||||||||||||||||||||||||||||
Retirement benefit plans: | ||||||||||||||||||||||||||||||||||||||
Net losses arising during the period, net of tax benefits | (26,019) | (6,090) | (5,004) | — | 11,094 | [1] | (26,019) | |||||||||||||||||||||||||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
|
19,012 | 2,819 | 2,423 | — | (5,242) | [1] | 19,012 | |||||||||||||||||||||||||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
|
8,325 | 3,305 | 2,788 | — | (6,093) | [1] | 8,325 | |||||||||||||||||||||||||||||||
Other comprehensive income, net of taxes | 1,318 | 34 | 207 | — | (241) | 1,318 | ||||||||||||||||||||||||||||||||
Comprehensive income attributable to common shareholder
|
$ | 144,971 | 24,515 | 21,119 | — | (45,634) | $ | 144,971 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries |
Consolidating
adjustments |
Hawaiian Electric
Consolidated |
||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Property, plant and equipment | ||||||||||||||||||||||||||||||||||||||
Utility property, plant and equipment | ||||||||||||||||||||||||||||||||||||||
Land | $ | 42,411 | 5,606 | 3,594 | — | — | $ | 51,611 | ||||||||||||||||||||||||||||||
Plant and equipment | 4,960,470 | 1,352,885 | 1,195,988 | — | — | 7,509,343 | ||||||||||||||||||||||||||||||||
Less accumulated depreciation | (1,677,256) | (597,606) | (544,217) | — | — | (2,819,079) | ||||||||||||||||||||||||||||||||
Construction in progress | 143,616 | 13,043 | 31,683 | — | — | 188,342 | ||||||||||||||||||||||||||||||||
Utility property, plant and equipment, net | 3,469,241 | 773,928 | 687,048 | — | — | 4,930,217 | ||||||||||||||||||||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation
|
5,306 | 115 | 1,532 | — | — | 6,953 | ||||||||||||||||||||||||||||||||
Total property, plant and equipment, net | 3,474,547 | 774,043 | 688,580 | — | — | 4,937,170 | ||||||||||||||||||||||||||||||||
Investment in wholly-owned subsidiaries, at equity
|
626,890 | — | — | — | (626,890) | [2] | — | |||||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 42,205 | 3,046 | 2,032 | 77 | — | 47,360 | ||||||||||||||||||||||||||||||||
Restricted cash | 15,966 | — | — | — | — | 15,966 | ||||||||||||||||||||||||||||||||
Advances to affiliates | 26,700 | — | — | — | (26,700) | [1] | — | |||||||||||||||||||||||||||||||
Customer accounts receivable, net
|
102,736 | 23,989 | 21,107 | — | — | 147,832 | ||||||||||||||||||||||||||||||||
Accrued unbilled revenues, net | 73,628 | 13,631 | 13,777 | — | — | 101,036 | ||||||||||||||||||||||||||||||||
Other accounts receivable, net | 17,984 | 3,028 | 2,856 | — | (16,195) | [1] | 7,673 | |||||||||||||||||||||||||||||||
Fuel oil stock, at average cost | 38,777 | 8,471 | 10,990 | — | — | 58,238 | ||||||||||||||||||||||||||||||||
Materials and supplies, at average cost
|
38,786 | 9,896 | 18,662 | — | — | 67,344 | ||||||||||||||||||||||||||||||||
Prepayments and other | 34,306 | 5,197 | 4,580 | — | — | 44,083 | ||||||||||||||||||||||||||||||||
Regulatory assets | 22,095 | 1,954 | 6,386 | — | — | 30,435 | ||||||||||||||||||||||||||||||||
Total current assets | 413,183 | 69,212 | 80,390 | 77 | (42,895) | 519,967 | ||||||||||||||||||||||||||||||||
Other long-term assets | ||||||||||||||||||||||||||||||||||||||
Operating lease right-of-use assets | 125,858 | 1,443 | 353 | — | — | 127,654 | ||||||||||||||||||||||||||||||||
Regulatory assets | 513,192 | 114,461 | 108,620 | — | — | 736,273 | ||||||||||||||||||||||||||||||||
Other | 98,307 | 17,992 | 20,010 | — | — | 136,309 | ||||||||||||||||||||||||||||||||
Total other long-term assets | 737,357 | 133,896 | 128,983 | — | — | 1,000,236 | ||||||||||||||||||||||||||||||||
Total assets
|
$ | 5,251,977 | 977,151 | 897,953 | 77 | (669,785) | $ | 6,457,373 | ||||||||||||||||||||||||||||||
Capitalization and liabilities | ||||||||||||||||||||||||||||||||||||||
Capitalization | ||||||||||||||||||||||||||||||||||||||
Common stock equity | $ | 2,141,918 | 317,451 | 309,363 | 77 | (626,891) | [2] | $ | 2,141,918 | |||||||||||||||||||||||||||||
Cumulative preferred stock–not subject to mandatory redemption
|
22,293 | 7,000 | 5,000 | — | — | 34,293 | ||||||||||||||||||||||||||||||||
Long-term debt, net | 1,116,426 | 216,447 | 228,429 | — | — | 1,561,302 | ||||||||||||||||||||||||||||||||
Total capitalization | 3,280,637 | 540,898 | 542,792 | 77 | (626,891) | 3,737,513 | ||||||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||||||||||||
Current portion of operating lease liabilities | 64,599 | 98 | 33 | — | — | 64,730 | ||||||||||||||||||||||||||||||||
Short-term borrowings-non-affiliate | 49,979 | — | — | — | — | 49,979 | ||||||||||||||||||||||||||||||||
Short-term borrowings-affiliate | — | 18,800 | 7,900 | — | (26,700) | [1] | — | |||||||||||||||||||||||||||||||
Accounts payable | 97,102 | 19,570 | 17,177 | — | — | 133,849 | ||||||||||||||||||||||||||||||||
Interest and preferred dividends payable
|
14,480 | 3,138 | 2,790 | — | (58) | [1] | 20,350 | |||||||||||||||||||||||||||||||
Taxes accrued | 135,018 | 29,869 | 27,637 | — | — | 192,524 | ||||||||||||||||||||||||||||||||
Regulatory liabilities | 20,224 | 8,785 | 8,292 | — | — | 37,301 | ||||||||||||||||||||||||||||||||
Other | 57,926 | 13,851 | 18,621 | — | (16,136) | [1] | 74,262 | |||||||||||||||||||||||||||||||
Total current liabilities | 439,328 | 94,111 | 82,450 | — | (42,894) | 572,995 | ||||||||||||||||||||||||||||||||
Deferred credits and other liabilities | ||||||||||||||||||||||||||||||||||||||
Operating lease liabilities | 67,824 | 1,344 | 326 | — | — | 69,494 | ||||||||||||||||||||||||||||||||
Deferred income taxes | 282,685 | 54,108 | 61,005 | — | — | 397,798 | ||||||||||||||||||||||||||||||||
Regulatory liabilities | 656,270 | 173,938 | 92,277 | — | — | 922,485 | ||||||||||||||||||||||||||||||||
Unamortized tax credits | 82,563 | 15,363 | 13,989 | — | — | 111,915 | ||||||||||||||||||||||||||||||||
Defined benefit pension and other postretirement benefit plans liability
|
373,112 | 77,679 | 79,741 | — | — | 530,532 | ||||||||||||||||||||||||||||||||
Other | 69,558 | 19,710 | 25,373 | — | — | 114,641 | ||||||||||||||||||||||||||||||||
Total deferred credits and other liabilities
|
1,532,012 | 342,142 | 272,711 | — | — | 2,146,865 | ||||||||||||||||||||||||||||||||
Total capitalization and liabilities | $ | 5,251,977 | 977,151 | 897,953 | 77 | (669,785) | $ | 6,457,373 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries |
Consolidating
adjustments |
Hawaiian Electric
Consolidated |
||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Property, plant and equipment | ||||||||||||||||||||||||||||||||||||||
Utility property, plant and equipment | ||||||||||||||||||||||||||||||||||||||
Land | $ | 42,598 | 5,606 | 3,612 | — | — | $ | 51,816 | ||||||||||||||||||||||||||||||
Plant and equipment | 4,765,362 | 1,313,727 | 1,161,199 | — | — | 7,240,288 | ||||||||||||||||||||||||||||||||
Less accumulated depreciation | (1,591,241) | (574,615) | (524,301) | — | — | (2,690,157) | ||||||||||||||||||||||||||||||||
Construction in progress | 165,137 | 9,993 | 17,944 | — | — | 193,074 | ||||||||||||||||||||||||||||||||
Utility property, plant and equipment, net | 3,381,856 | 754,711 | 658,454 | — | — | 4,795,021 | ||||||||||||||||||||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation
|
5,310 | 114 | 1,532 | — | — | 6,956 | ||||||||||||||||||||||||||||||||
Total property, plant and equipment, net | 3,387,166 | 754,825 | 659,986 | — | — | 4,801,977 | ||||||||||||||||||||||||||||||||
Investment in wholly-owned subsidiaries, at equity
|
591,969 | — | — | — | (591,969) | [2] | — | |||||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 2,239 | 6,885 | 1,797 | 101 | — | 11,022 | ||||||||||||||||||||||||||||||||
Restricted cash | 30,749 | 123 | — | — | — | 30,872 | ||||||||||||||||||||||||||||||||
Advances to affiliates | 27,700 | 8,000 | — | — | (35,700) | [1] | — | |||||||||||||||||||||||||||||||
Customer accounts receivable, net
|
105,454 | 24,520 | 22,816 | — | — | 152,790 | ||||||||||||||||||||||||||||||||
Accrued unbilled revenues, net | 83,148 | 17,071 | 17,008 | — | — | 117,227 | ||||||||||||||||||||||||||||||||
Other accounts receivable, net | 18,396 | 1,907 | 1,960 | — | (10,695) | [1] | 11,568 | |||||||||||||||||||||||||||||||
Fuel oil stock, at average cost | 69,003 | 8,901 | 14,033 | — | — | 91,937 | ||||||||||||||||||||||||||||||||
Materials and supplies, at average cost
|
34,876 | 8,313 | 17,513 | — | — | 60,702 | ||||||||||||||||||||||||||||||||
Prepayments and other | 88,334 | 3,725 | 24,921 | — | — | 116,980 | ||||||||||||||||||||||||||||||||
Regulatory assets | 27,689 | 1,641 | 1,380 | — | — | 30,710 | ||||||||||||||||||||||||||||||||
Total current assets | 487,588 | 81,086 | 101,428 | 101 | (46,395) | 623,808 | ||||||||||||||||||||||||||||||||
Other long-term assets | ||||||||||||||||||||||||||||||||||||||
Operating lease right-of-use assets | 174,886 | 1,537 | 386 | — | — | 176,809 | ||||||||||||||||||||||||||||||||
Regulatory assets | 476,390 | 109,163 | 98,817 | — | — | 684,370 | ||||||||||||||||||||||||||||||||
Other | 69,010 | 15,493 | 17,215 | — | — | 101,718 | ||||||||||||||||||||||||||||||||
Total other long-term assets | 720,286 | 126,193 | 116,418 | — | — | 962,897 | ||||||||||||||||||||||||||||||||
Total assets
|
$ | 5,187,009 | 962,104 | 877,832 | 101 | (638,364) | $ | 6,388,682 | ||||||||||||||||||||||||||||||
Capitalization and liabilities | ||||||||||||||||||||||||||||||||||||||
Capitalization | ||||||||||||||||||||||||||||||||||||||
Common stock equity | $ | 2,047,352 | 298,998 | 292,870 | 101 | (591,969) | [2] | $ | 2,047,352 | |||||||||||||||||||||||||||||
Cumulative preferred stock–not subject to mandatory redemption
|
22,293 | 7,000 | 5,000 | — | — | 34,293 | ||||||||||||||||||||||||||||||||
Long-term debt, net | 1,006,737 | 206,416 | 188,561 | — | — | 1,401,714 | ||||||||||||||||||||||||||||||||
Total capitalization | 3,076,382 | 512,414 | 486,431 | 101 | (591,969) | 3,483,359 | ||||||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||||||||||||
Current portion of operating lease liabilities | 63,582 | 94 | 31 | — | — | 63,707 | ||||||||||||||||||||||||||||||||
Current portion of long-term debt | 61,958 | 13,995 | 20,000 | — | — | 95,953 | ||||||||||||||||||||||||||||||||
Short-term borrowings-non-affiliate | 88,987 | — | — | — | — | 88,987 | ||||||||||||||||||||||||||||||||
Short-term borrowings-affiliate | 8,000 | — | 27,700 | — | (35,700) | [1] | — | |||||||||||||||||||||||||||||||
Accounts payable | 139,056 | 25,629 | 23,085 | — | — | 187,770 | ||||||||||||||||||||||||||||||||
Interest and preferred dividends payable
|
14,759 | 3,115 | 2,900 | — | (46) | [1] | 20,728 | |||||||||||||||||||||||||||||||
Taxes accrued | 143,522 | 32,541 | 31,929 | — | — | 207,992 | ||||||||||||||||||||||||||||||||
Regulatory liabilities | 13,363 | 9,454 | 7,907 | — | — | 30,724 | ||||||||||||||||||||||||||||||||
Other | 51,295 | 11,362 | 15,297 | — | (10,649) | [1] | 67,305 | |||||||||||||||||||||||||||||||
Total current liabilities | 584,522 | 96,190 | 128,849 | — | (46,395) | 763,166 | ||||||||||||||||||||||||||||||||
Deferred credits and other liabilities | ||||||||||||||||||||||||||||||||||||||
Operating lease liabilities | 111,598 | 1,442 | 360 | — | — | 113,400 | ||||||||||||||||||||||||||||||||
Deferred income taxes | 265,864 | 53,534 | 57,752 | — | — | 377,150 | ||||||||||||||||||||||||||||||||
Regulatory liabilities | 664,894 | 178,474 | 98,218 | — | — | 941,586 | ||||||||||||||||||||||||||||||||
Unamortized tax credits | 86,852 | 16,196 | 14,820 | — | — | 117,868 | ||||||||||||||||||||||||||||||||
Defined benefit pension and other postretirement benefit plans liability
|
339,471 | 69,928 | 69,364 | — | — | 478,763 | ||||||||||||||||||||||||||||||||
Other | 57,426 | 33,926 | 22,038 | — | — | 113,390 | ||||||||||||||||||||||||||||||||
Total deferred credits and other liabilities
|
1,526,105 | 353,500 | 262,552 | — | — | 2,142,157 | ||||||||||||||||||||||||||||||||
Total capitalization and liabilities | $ | 5,187,009 | 962,104 | 877,832 | 101 | (638,364) | $ | 6,388,682 |
(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 | 143,653 | 24,481 | 20,912 | — | (45,393) | 143,653 | |||||||||||||||||||||||||||||
Other comprehensive income, net of taxes | 1,318 | 34 | 207 | — | (241) | 1,318 | |||||||||||||||||||||||||||||
Issuance of common stock, net of expenses | 70,692 | 1 | 1,498 | — | (1,499) | 70,692 | |||||||||||||||||||||||||||||
Common stock dividends | (103,305) | (15,289) | (12,019) | — | 27,308 | (103,305) | |||||||||||||||||||||||||||||
Balance, December 31, 2018 | 1,957,641 | 295,874 | 280,863 | 101 | (576,838) | 1,957,641 | |||||||||||||||||||||||||||||
Net income for common stock | 156,840 | 20,817 | 22,350 | — | (43,167) | 156,840 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax benefits | (1,378) | (12) | (174) | — | 186 | (1,378) | |||||||||||||||||||||||||||||
Issuance of common stock, net of expenses
|
35,501 | (1) | 4,899 | — | (4,898) | 35,501 | |||||||||||||||||||||||||||||
Common stock dividends | (101,252) | (17,680) | (15,068) | — | 32,748 | (101,252) | |||||||||||||||||||||||||||||
Balance, December 31, 2019 | 2,047,352 | 298,998 | 292,870 | 101 | (591,969) | 2,047,352 | |||||||||||||||||||||||||||||
Net income for common stock | 169,340 | 27,493 | 20,011 | — | (47,504) | 169,340 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax benefits | (1,640) | (220) | (134) | — | 354 | (1,640) | |||||||||||||||||||||||||||||
Issuance of common stock, net of expenses
|
34,000 | 7,500 | 11,000 | — | (18,500) | 34,000 | |||||||||||||||||||||||||||||
Common stock dividends | (107,134) | (16,320) | (14,384) | — | 30,704 | (107,134) | |||||||||||||||||||||||||||||
Dissolution of subsidiary | — | — | — | (24) | 24 | — | |||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | 2,141,918 | 317,451 | 309,363 | 77 | (626,891) | $ | 2,141,918 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries |
Consolidating
adjustments |
Hawaiian Electric
Consolidated |
||||||||||||||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||||||||||||||||||||
Net income | $ | 170,420 | 28,027 | 20,392 | — | (47,504) | [2] | $ | 171,335 | |||||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||||||||||||||||||||
Equity in earnings of subsidiaries | (47,504) | — | — | — | 47,504 | [2] | — | |||||||||||||||||||||||||||||||
Common stock dividends received from subsidiaries | 30,704 | — | — | — | (30,704) | [2] | — | |||||||||||||||||||||||||||||||
Depreciation of property, plant and equipment | 151,387 | 39,041 | 32,305 | — | — | 222,733 | ||||||||||||||||||||||||||||||||
Other amortization | 24,511 | 5,090 | 4,145 | — | — | 33,746 | ||||||||||||||||||||||||||||||||
Deferred income taxes | 2,130 | (463) | 1,484 | — | — | 3,151 | ||||||||||||||||||||||||||||||||
State refundable credit | (6,668) | (1,593) | (1,700) | — | — | (9,961) | ||||||||||||||||||||||||||||||||
Bad debt expense | 1,042 | 620 | 453 | — | — | 2,115 | ||||||||||||||||||||||||||||||||
Allowance for equity funds used during construction | (7,335) | (543) | (890) | — | — | (8,768) | ||||||||||||||||||||||||||||||||
Accrued environmental reserve | 6,556 | — | — | — | — | 6,556 | ||||||||||||||||||||||||||||||||
Other | 1,201 | 1,322 | 87 | — | — | 2,610 | ||||||||||||||||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||||||||||||||||
Increase in accounts receivable | (8,093) | (3,349) | (1,343) | — | 5,499 | [1] | (7,286) | |||||||||||||||||||||||||||||||
Decrease in accrued unbilled revenues | 8,832 | 3,327 | 3,126 | — | — | 15,285 | ||||||||||||||||||||||||||||||||
Decrease in fuel oil stock | 30,226 | 430 | 3,043 | — | — | 33,699 | ||||||||||||||||||||||||||||||||
Increase in materials and supplies | (3,910) | (1,583) | (1,149) | — | — | (6,642) | ||||||||||||||||||||||||||||||||
Decrease (increase) in regulatory assets | 8,526 | (2,908) | (4,611) | — | — | 1,007 | ||||||||||||||||||||||||||||||||
Decrease in regulatory liabilities | (5,490) | (4,489) | (6,583) | (16,562) | ||||||||||||||||||||||||||||||||||
Decrease in accounts payable | (26,093) | (1,819) | (5,217) | — | — | (33,129) | ||||||||||||||||||||||||||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (25,757) | (5,483) | (5,998) | — | 58 | [1] | (37,180) | |||||||||||||||||||||||||||||||
Decrease in defined benefit pension and other postretirement benefit plans liability | (3,092) | (643) | (571) | — | — | (4,306) | ||||||||||||||||||||||||||||||||
Change in other assets and liabilities | (21,124) | (8,864) | 3,635 | — | (5,499) | [1] | (31,852) | |||||||||||||||||||||||||||||||
Net cash provided by operating activities | 280,469 | 46,120 | 40,608 | — | (30,646) | 336,551 | ||||||||||||||||||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||||||||||||||||||||
Capital expenditures | (229,127) | (64,346) | (57,391) | — | — | (350,864) | ||||||||||||||||||||||||||||||||
Advances from affiliates | 1,000 | 8,000 | — | — | (9,000) | [1] | — | |||||||||||||||||||||||||||||||
Other | (14,340) | 1,032 | 960 | (24) | 18,442 | [1],[2] | 6,070 | |||||||||||||||||||||||||||||||
Net cash used in investing activities | (242,467) | (55,314) | (56,431) | (24) | 9,442 | (344,794) | ||||||||||||||||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||||||||||||||||||
Common stock dividends | (107,134) | (16,320) | (14,384) | — | 30,704 | [2] | (107,134) | |||||||||||||||||||||||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080) | (534) | (381) | — | — | (1,995) | ||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | 34,000 | 7,500 | 11,000 | — | (18,500) | [2] | 34,000 | |||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 205,000 | 10,000 | 40,000 | — | — | 255,000 | ||||||||||||||||||||||||||||||||
Repayment of long-term debt | (95,000) | (14,000) | — | — | — | (109,000) | ||||||||||||||||||||||||||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (46,987) | 18,800 | (19,800) | — | 9,000 | [1] | (38,987) | |||||||||||||||||||||||||||||||
Proceeds from issuance of short-term debt | 100,000 | — | — | — | — | 100,000 | ||||||||||||||||||||||||||||||||
Repayment of short-term debt | (100,000) | — | — | — | — | (100,000) | ||||||||||||||||||||||||||||||||
Other | (1,618) | (214) | (377) | — | — | (2,209) | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (12,819) | 5,232 | 16,058 | — | 21,204 | 29,675 | ||||||||||||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 25,183 | (3,962) | 235 | (24) | — | 21,432 | ||||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash, January 1 | 32,988 | 7,008 | 1,797 | 101 | — | 41,894 | ||||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash, December 31 | 58,171 | 3,046 | 2,032 | 77 | — | 63,326 | ||||||||||||||||||||||||||||||||
Less: Restricted cash | (15,966) | — | — | — | — | (15,966) | ||||||||||||||||||||||||||||||||
Cash and cash equivalents, December 31 | 42,205 | 3,046 | 2,032 | 77 | — | $ | 47,360 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries |
Consolidating
adjustments |
Hawaiian Electric
Consolidated |
||||||||||||||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||||||||||||||||||||
Net income | $ | 157,920 | 21,351 | 22,731 | — | (43,167) | [2] | $ | 158,835 | |||||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||||||||||||||||||||||||||||||||
Equity in earnings of subsidiaries
|
(43,204) | — | — | — | 43,167 | [2] | (37) | |||||||||||||||||||||||||||||||
Common stock dividends received from subsidiaries
|
32,783 | — | — | — | (32,748) | [2] | 35 | |||||||||||||||||||||||||||||||
Depreciation of property, plant and equipment
|
143,470 | 41,812 | 30,449 | — | — | 215,731 | ||||||||||||||||||||||||||||||||
Other amortization | 23,351 | 4,810 | 1,470 | — | — | 29,631 | ||||||||||||||||||||||||||||||||
Deferred income taxes
|
(13,547) | (2,383) | (354) | — | — | (16,284) | ||||||||||||||||||||||||||||||||
State refundable credit
|
(6,245) | (559) | (1,565) | — | — | (8,369) | ||||||||||||||||||||||||||||||||
Bad debt expense | 1,236 | 470 | 444 | — | — | 2,150 | ||||||||||||||||||||||||||||||||
Allowance for equity funds used during construction
|
(9,955) | (816) | (1,216) | — | — | (11,987) | ||||||||||||||||||||||||||||||||
Accrued environmental reserve | 406 | — | — | — | — | 406 | ||||||||||||||||||||||||||||||||
Other
|
27,575 | (61) | (55) | — | — | 27,459 | ||||||||||||||||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||||||||||||||||
Decrease in accounts receivable | 24,150 | 2,858 | 3,029 | — | (11,215) | [1] | 18,822 | |||||||||||||||||||||||||||||||
Decrease (increase) in accrued unbilled revenues | 4,902 | (22) | (385) | — | — | 4,495 | ||||||||||||||||||||||||||||||||
Decrease (increase) in fuel oil stock | (14,741) | 2,126 | 613 | — | — | (12,002) | ||||||||||||||||||||||||||||||||
Decrease (increase) in materials and supplies
|
(4,585) | (1,158) | 245 | — | — | (5,498) | ||||||||||||||||||||||||||||||||
Decrease in regulatory assets | 55,494 | 9,218 | 6,550 | — | — | 71,262 | ||||||||||||||||||||||||||||||||
Increase (decrease) in regulatory liabilities | 102 | (1,558) | 3,409 | 1,953 | ||||||||||||||||||||||||||||||||||
Increase (decrease) in accounts payable | 4,687 | (3,160) | (3,578) | — | — | (2,051) | ||||||||||||||||||||||||||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
(24,900) | (893) | (3,097) | — | 367 | [1] | (28,523) | |||||||||||||||||||||||||||||||
Decrease in defined benefit pension and other postretirement benefit plans liability | (3,033) | (762) | (653) | — | — | (4,448) | ||||||||||||||||||||||||||||||||
Change in other assets and liabilities
|
(15,747) | (6,152) | (6,940) | — | 11,215 | [1] | (17,624) | |||||||||||||||||||||||||||||||
Net cash provided by operating activities
|
340,119 | 65,121 | 51,097 | — | (32,381) | 423,956 | ||||||||||||||||||||||||||||||||
Cash flows from investing activities
|
||||||||||||||||||||||||||||||||||||||
Capital expenditures | (311,538) | (49,811) | (58,549) | — | — | (419,898) | ||||||||||||||||||||||||||||||||
Advances to affiliates | (27,700) | (8,000) | — | — | 35,700 | [1] | — | |||||||||||||||||||||||||||||||
Other | 5,241 | 297 | 1,303 | — | 4,533 | [1],[2] | 11,374 | |||||||||||||||||||||||||||||||
Net cash used in investing activities | (333,997) | (57,514) | (57,246) | — | 40,233 | (408,524) | ||||||||||||||||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||||||||||||||||||
Common stock dividends | (101,252) | (17,680) | (15,068) | — | 32,748 | [2] | (101,252) | |||||||||||||||||||||||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
(1,080) | (534) | (381) | — | — | (1,995) | ||||||||||||||||||||||||||||||||
Proceeds from the issuance of common stock
|
35,500 | — | 4,900 | — | (4,900) | [2] | 35,500 | |||||||||||||||||||||||||||||||
Proceeds from the issuance of long-term debt
|
190,000 | 72,500 | 17,500 | — | — | 280,000 | ||||||||||||||||||||||||||||||||
Repayment of long-term debt and funds transferred
for repayment of long-term dent
|
(183,546) | (70,000) | (30,000) | — | — | (283,546) | ||||||||||||||||||||||||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 46,987 | — | 27,700 | — | (35,700) | [1] | 38,987 | |||||||||||||||||||||||||||||||
Proceeds from issuance of short-term debt | 75,000 | — | — | — | — | 75,000 | ||||||||||||||||||||||||||||||||
Repayment of short-term debt | (50,000) | — | — | — | — | (50,000) | ||||||||||||||||||||||||||||||||
Other | (1,475) | (508) | (126) | — | — | (2,109) | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities
|
10,134 | (16,222) | 4,525 | — | (7,852) | (9,415) | ||||||||||||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
16,256 | (8,615) | (1,624) | — | — | 6,017 | ||||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash, January 1
|
16,732 | 15,623 | 3,421 | 101 | — | 35,877 | ||||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash, December 31
|
32,988 | 7,008 | 1,797 | 101 | — | 41,894 | ||||||||||||||||||||||||||||||||
Less: Restricted cash
|
(30,749) | (123) | — | — | — | (30,872) | ||||||||||||||||||||||||||||||||
Cash and cash equivalents, December 31
|
$ | 2,239 | 6,885 | 1,797 | 101 | — | $ | 11,022 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries |
Consolidating
adjustments |
Hawaiian Electric
Consolidated |
||||||||||||||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||||||||||||||||||||
Net income | $ | 144,733 | 25,015 | 21,293 | — | (45,393) | [2] | $ | 145,648 | |||||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||||||||||||||||||||||||||||||||
Equity in earnings of subsidiaries
|
(45,493) | — | — | — | 45,393 | [2] | (100) | |||||||||||||||||||||||||||||||
Common stock dividends received from subsidiaries
|
27,408 | — | — | — | (27,308) | [2] | 100 | |||||||||||||||||||||||||||||||
Depreciation of property, plant and equipment
|
137,410 | 40,235 | 25,981 | — | — | 203,626 | ||||||||||||||||||||||||||||||||
Other amortization | 20,956 | 5,069 | 577 | — | — | 26,602 | ||||||||||||||||||||||||||||||||
Deferred income taxes
|
(9,806) | (341) | 2,165 | — | — | (7,982) | ||||||||||||||||||||||||||||||||
State refundable credit
|
(4,941) | (547) | (751) | — | — | (6,239) | ||||||||||||||||||||||||||||||||
Bad debt expense | 1,388 | 600 | 217 | — | — | 2,205 | ||||||||||||||||||||||||||||||||
Allowance for equity funds used during construction
|
(9,208) | (478) | (1,191) | — | — | (10,877) | ||||||||||||||||||||||||||||||||
Accrued environmental reserve | 273 | — | — | — | — | 273 | ||||||||||||||||||||||||||||||||
Other
|
3,908 | 334 | 427 | — | — | 4,669 | ||||||||||||||||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||||||||||||||||
Increase in accounts receivable | (53,020) | (5,457) | (8,829) | — | 14,220 | [1] | (53,086) | |||||||||||||||||||||||||||||||
Increase in accrued unbilled revenues
|
(10,908) | (1,121) | (2,691) | — | — | (14,720) | ||||||||||||||||||||||||||||||||
Decrease (increase) in fuel oil stock | 10,710 | (2,329) | (1,443) | — | — | 6,938 | ||||||||||||||||||||||||||||||||
Decrease (increase) in materials and supplies
|
(1,966) | 886 | 273 | — | — | (807) | ||||||||||||||||||||||||||||||||
Decrease (increase) in regulatory assets | 12,192 | 71 | (3,011) | — | — | 9,252 | ||||||||||||||||||||||||||||||||
Increase in regulatory liabilities
|
26,540 | 5,380 | 5,438 | — | — | 37,358 | ||||||||||||||||||||||||||||||||
Increase in accounts payable | 14,748 | 6,104 | 3,506 | — | — | 24,358 | ||||||||||||||||||||||||||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes
|
24,438 | (2,118) | 3,047 | — | (331) | [1] | 25,036 | |||||||||||||||||||||||||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability
|
17,178 | (760) | 2,328 | — | — | 18,746 | ||||||||||||||||||||||||||||||||
Change in other assets and liabilities
|
(8,329) | 2,806 | 2,356 | — | (14,220) | [1] | (17,387) | |||||||||||||||||||||||||||||||
Net cash provided by operating activities
|
298,211 | 73,349 | 49,692 | — | (27,639) | 393,613 | ||||||||||||||||||||||||||||||||
Cash flows from investing activities
|
||||||||||||||||||||||||||||||||||||||
Capital expenditures | (305,703) | (51,054) | (58,507) | — | — | (415,264) | ||||||||||||||||||||||||||||||||
Advances from affiliates | — | — | 12,000 | — | (12,000) | [1] | — | |||||||||||||||||||||||||||||||
Other | 3,226 | 1,182 | 3,843 | — | 1,831 | [1],[2] | 10,082 | |||||||||||||||||||||||||||||||
Net cash used in investing activities | (302,477) | (49,872) | (42,664) | — | (10,169) | (405,182) | ||||||||||||||||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||||||||||||||||||
Common stock dividends | (103,305) | (15,289) | (12,019) | — | 27,308 | [2] | (103,305) | |||||||||||||||||||||||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries
|
(1,080) | (534) | (381) | — | — | (1,995) | ||||||||||||||||||||||||||||||||
Proceeds from the issuance of common stock
|
70,700 | — | 1,500 | — | (1,500) | [2] | 70,700 | |||||||||||||||||||||||||||||||
Proceeds from the issuance of long-term debt
|
75,000 | 15,000 | 10,000 | — | — | 100,000 | ||||||||||||||||||||||||||||||||
Repayment of long-term debt | (30,000) | (11,000) | (9,000) | — | — | (50,000) | ||||||||||||||||||||||||||||||||
Net decrease in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (16,999) | — | — | — | 12,000 | [1] | (4,999) | |||||||||||||||||||||||||||||||
Proceeds from issuance of short-term debt | 25,000 | — | — | — | — | 25,000 | ||||||||||||||||||||||||||||||||
Other | (377) | (56) | (39) | — | — | (472) | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities
|
18,939 | (11,879) | (9,939) | — | 37,808 | 34,929 | ||||||||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
14,673 | 11,598 | (2,911) | — | — | 23,360 | ||||||||||||||||||||||||||||||||
Cash and cash equivalents, January 1
|
2,059 | 4,025 | 6,332 | 101 | — | 12,517 | ||||||||||||||||||||||||||||||||
Cash and cash equivalents, December 31
|
$ | 16,732 | 15,623 | 3,421 | 101 | — | $ | 35,877 |
Note 4· Bank segment (HEI only)
|
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in thousands) | |||||||||||||||||
Interest and dividend income | |||||||||||||||||
Interest and fees on loans | $ | 214,134 | $ | 233,632 | $ | 220,463 | |||||||||||
Interest and dividends on investment securities | 30,529 | 32,922 | 37,762 | ||||||||||||||
Total interest and dividend income | 244,663 | 266,554 | 258,225 | ||||||||||||||
Interest expense | |||||||||||||||||
Interest on deposit liabilities | 10,654 | 16,830 | 13,991 | ||||||||||||||
Interest on other borrowings | 460 | 1,610 | 1,548 | ||||||||||||||
Total interest expense | 11,114 | 18,440 | 15,539 | ||||||||||||||
Net interest income | 233,549 | 248,114 | 242,686 | ||||||||||||||
Provision for credit losses | 50,811 | 23,480 | 14,745 | ||||||||||||||
Net interest income after provision for credit losses | 182,738 | 224,634 | 227,941 | ||||||||||||||
Noninterest income | |||||||||||||||||
Fees from other financial services | 16,447 | 19,275 | 18,937 | ||||||||||||||
Fee income on deposit liabilities | 16,059 | 20,877 | 21,311 | ||||||||||||||
Fee income on other financial products | 6,381 | 6,507 | 7,052 | ||||||||||||||
Bank-owned life insurance | 6,483 | 7,687 | 5,057 | ||||||||||||||
Mortgage banking income | 23,734 | 4,943 | 1,493 | ||||||||||||||
Gain on sale of real estate | — | 10,762 | — | ||||||||||||||
Gain on sale of investment securities, net | 9,275 | 653 | — | ||||||||||||||
Other income, net | (256) | 2,074 | 2,200 | ||||||||||||||
Total noninterest income | 78,123 | 72,778 | 56,050 | ||||||||||||||
Noninterest expense | |||||||||||||||||
Compensation and employee benefits | 104,443 | 103,009 | 98,387 | ||||||||||||||
Occupancy | 21,573 | 21,272 | 17,073 | ||||||||||||||
Data processing | 14,769 | 15,306 | 14,268 | ||||||||||||||
Services | 11,121 | 10,239 | 10,847 | ||||||||||||||
Equipment | 9,001 | 8,760 | 7,186 | ||||||||||||||
Office supplies, printing and postage | 4,623 | 5,512 | 6,134 | ||||||||||||||
Marketing | 3,435 | 4,490 | 3,567 | ||||||||||||||
FDIC insurance | 2,342 | 1,204 | 2,713 | ||||||||||||||
Other expense1
|
20,283 | 15,586 | 17,238 | ||||||||||||||
Total noninterest expense | 191,590 | 185,378 | 177,413 | ||||||||||||||
Income before income taxes | 69,271 | 112,034 | 106,578 | ||||||||||||||
Income taxes | 11,688 | 23,061 | 24,069 | ||||||||||||||
Net income | 57,583 | 88,973 | 82,509 | ||||||||||||||
Other comprehensive income (loss), net of taxes | 23,608 | 29,406 | (7,119) | ||||||||||||||
Comprehensive income | $ | 81,191 | $ | 118,379 | $ | 75,390 |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in thousands) | |||||||||||||||||
Interest and dividend income | $ | 244,663 | $ | 266,554 | $ | 258,225 | |||||||||||
Noninterest income | 78,123 | 72,778 | 56,050 | ||||||||||||||
Less: Gain on sale of real estate | — | 10,762 | — | ||||||||||||||
Less: Gain on sale of investment securities, net | 9,275 | 653 | — | ||||||||||||||
*Revenues-Bank | 313,511 | 327,917 | 314,275 | ||||||||||||||
Total interest expense | 11,114 | 18,440 | 15,539 | ||||||||||||||
Provision for credit losses | 50,811 | 23,480 | 14,745 | ||||||||||||||
Noninterest expense | 191,590 | 185,378 | 177,413 | ||||||||||||||
Less: Retirement defined benefits expense (credit)—other than service costs | 1,813 | (472) | 1,657 | ||||||||||||||
Add: Gain on sale of real estate | — | 10,762 | — | ||||||||||||||
*Expenses-Bank | 251,702 | 217,008 | 206,040 | ||||||||||||||
*Operating income-Bank | 61,809 | 110,909 | 108,235 | ||||||||||||||
Add back: Retirement defined benefits expense (credit)—other than service costs | 1,813 | (472) | 1,657 | ||||||||||||||
Add back: Gain on sale of investment securities, net | 9,275 | 653 | — | ||||||||||||||
Income before income taxes | $ | 69,271 | $ | 112,034 | $ | 106,578 |
December 31 | 2020 | 2019 | ||||||||||||
(in thousands) | ||||||||||||||
Assets | ||||||||||||||
Cash and due from banks | $ | 178,422 | $ | 129,770 | ||||||||||
Interest-bearing deposits | 114,304 | 48,628 | ||||||||||||
Cash and cash equivalents | 292,726 | 178,398 | ||||||||||||
Investment securities | ||||||||||||||
Available-for-sale, at fair value | 1,970,417 | 1,232,826 | ||||||||||||
Held-to-maturity, at amortized cost (fair value of $229,963 and $143,467 at December 31, 2020 and 2019, respectively)
|
226,947 | 139,451 | ||||||||||||
Stock in Federal Home Loan Bank, at cost | 8,680 | 8,434 | ||||||||||||
Loans held for investment | 5,333,843 | 5,121,176 | ||||||||||||
Allowance for credit losses | (101,201) | (53,355) | ||||||||||||
Net loans | 5,232,642 | 5,067,821 | ||||||||||||
Loans held for sale, at lower of cost or fair value | 28,275 | 12,286 | ||||||||||||
Other | 554,656 | 511,611 | ||||||||||||
Goodwill | 82,190 | 82,190 | ||||||||||||
Total assets | $ | 8,396,533 | $ | 7,233,017 | ||||||||||
Liabilities and shareholder’s equity | ||||||||||||||
Deposit liabilities–noninterest-bearing | $ | 2,598,500 | $ | 1,909,682 | ||||||||||
Deposit liabilities–interest-bearing | 4,788,457 | 4,362,220 | ||||||||||||
Other borrowings | 89,670 | 115,110 | ||||||||||||
Other | 183,731 | 146,954 | ||||||||||||
Total liabilities | 7,660,358 | 6,533,966 | ||||||||||||
Commitments and contingencies | ||||||||||||||
Common stock | 1 | 1 | ||||||||||||
Additional paid in capital | 351,758 | 349,453 | ||||||||||||
Retained earnings | 369,470 | 358,259 | ||||||||||||
Accumulated other comprehensive income (loss), net of taxes | ||||||||||||||
Net unrealized gains (losses) on securities | $ | 19,986 | $ | 2,481 | ||||||||||
Retirement benefit plans | (5,040) | 14,946 | (11,143) | (8,662) | ||||||||||
Total shareholder’s equity | 736,175 | 699,051 | ||||||||||||
Total liabilities and shareholder’s equity | $ | 8,396,533 | $ | 7,233,017 |
December 31 | 2020 | 2019 | ||||||||||||
(in thousands) | ||||||||||||||
Other assets | ||||||||||||||
Bank-owned life insurance | $ | 163,265 | $ | 157,465 | ||||||||||
Premises and equipment, net | 206,134 | 204,449 | ||||||||||||
Accrued interest receivable | 24,616 | 19,365 | ||||||||||||
Mortgage servicing rights | 10,020 | 9,101 | ||||||||||||
Low-income housing investments | 83,435 | 66,302 | ||||||||||||
Other | 67,186 | 54,929 | ||||||||||||
$ | 554,656 | $ | 511,611 | |||||||||||
Other liabilities | ||||||||||||||
Accrued expenses | $ | 62,694 | $ | 45,822 | ||||||||||
Federal and state income taxes payable | 6,582 | 14,996 | ||||||||||||
Cashier’s checks | 38,011 | 23,647 | ||||||||||||
Advance payments by borrowers | 10,207 | 10,486 | ||||||||||||
Other | 66,237 | 52,003 | ||||||||||||
$ | 183,731 | $ | 146,954 |
Gross unrealized losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross unrealized
gains |
Gross unrealized
losses |
Estimated fair value | Less than 12 months | 12 months or longer | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) |
Amortized
cost |
Number of issues | Fair value | Amount | Number of issues | Fair value | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency obligations
|
$ | 60,260 | $ | 2,062 | $ | — | $ | 62,322 | — | $ | — | $ | — | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities* | 1,825,893 | 26,817 | (3,151) | 1,849,559 | 22 | 373,924 | (3,151) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds
|
29,776 | 1,575 | — | 31,351 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage revenue bonds
|
27,185 | — | — | 27,185 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,943,114 | $ | 30,454 | $ | (3,151) | $ | 1,970,417 | 22 | $ | 373,924 | $ | (3,151) | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities* | $ | 226,947 | $ | 3,846 | $ | (830) | $ | 229,963 | 7 | $ | 114,152 | $ | (830) | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||
$ | 226,947 | $ | 3,846 | $ | (830) | $ | 229,963 | 7 | $ | 114,152 | $ | (830) | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency obligations
|
$ | 117,255 | $ | 652 | $ | (120) | $ | 117,787 | 2 | $ | 4,110 | $ | (11) | 3 | $ | 27,637 | $ | (109) | |||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities* | 1,024,892 | 6,000 | (4,507) | 1,026,385 | 19 | 152,071 | (819) | 75 | 318,020 | (3,688) | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds
|
58,694 | 1,363 | — | 60,057 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage revenue bonds | 28,597 | — | — | 28,597 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,229,438 | $ | 8,015 | $ | (4,627) | $ | 1,232,826 | 21 | $ | 156,181 | $ | (830) | 78 | $ | 345,657 | $ | (3,797) | ||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities* | $ | 139,451 | $ | 4,087 | $ | (71) | $ | 143,467 | 1 | $ | 12,986 | $ | (71) | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||
$ | 139,451 | $ | 4,087 | $ | (71) | $ | 143,467 | 1 | $ | 12,986 | $ | (71) | — | $ | — | $ | — |
Amortized | Fair | ||||||||||
December 31, 2020 | Cost | value | |||||||||
(in thousands) | |||||||||||
Available-for-sale | |||||||||||
Due in one year or less | $ | 16,974 | $ | 17,098 | |||||||
Due after one year through five years | 41,551 | 43,285 | |||||||||
Due after five years through ten years | 31,511 | 33,290 | |||||||||
Due after ten years | 27,185 | 27,185 | |||||||||
117,221 | 120,858 | ||||||||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
1,825,893 | 1,849,559 | |||||||||
Total available-for-sale securities | $ | 1,943,114 | $ | 1,970,417 | |||||||
Held-to-maturity | |||||||||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
|
$ | 226,947 | $ | 229,963 | |||||||
Total held-to-maturity securities | $ | 226,947 | $ | 229,963 |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in thousands) | |||||||||||||||||
Proceeds | $ | 169,157 | $ | 19,810 | $ | — | |||||||||||
Gross gains | 9,275 | 653 | — | ||||||||||||||
Gross losses | — | — | — |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in thousands) | |||||||||||||||||
Taxable | $ | 29,760 | $ | 31,848 | $ | 37,153 | |||||||||||
Non-taxable | 769 | 1,074 | 609 | ||||||||||||||
$ | 30,529 | $ | 32,922 | $ | 37,762 |
December 31 | 2020 | 2019 | |||||||||
(in thousands) | |||||||||||
Real estate: | |||||||||||
Residential 1-4 family | $ | 2,144,239 | $ | 2,178,135 | |||||||
Commercial real estate | 983,865 | 824,830 | |||||||||
Home equity line of credit | 963,578 | 1,092,125 | |||||||||
Residential land | 15,617 | 14,704 | |||||||||
Commercial construction | 121,424 | 70,605 | |||||||||
Residential construction | 11,022 | 11,670 | |||||||||
Total real estate | 4,239,745 | 4,192,069 | |||||||||
Commercial | 936,748 | 670,674 | |||||||||
Consumer | 168,733 | 257,921 | |||||||||
Total loans | 5,345,226 | 5,120,664 | |||||||||
Less: Deferred fees and discounts | (11,383) | 512 | |||||||||
Allowance for credit losses | (101,201) | (53,355) | |||||||||
Total loans, net | $ | 5,232,642 | $ | 5,067,821 |
(in thousands) | Residential 1-4 family |
Commercial
real estate |
Home equity
line of credit |
Residential land | Commercial construction | Residential construction | Commercial | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, prior to adoption of ASU No. 2016-13 | $ | 2,380 | $ | 15,053 | $ | 6,922 | $ | 449 | $ | 2,097 | $ | 3 | $ | 10,245 | $ | 16,206 | $ | 53,355 | |||||||||||||||||||||||||||||||||||||||||
Impact of adopting ASU No. 2016-13 | 2,150 | 208 | (541) | (64) | 289 | 14 | 922 | 16,463 | 19,441 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | (7) | — | (77) | (351) | — | — | (5,819) | (19,900) | (26,154) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 394 | — | 63 | 38 | — | — | 872 | 3,381 | 4,748 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net (charge-offs) recoveries | 387 | — | (14) | (313) | — | — | (4,947) | (16,519) | (21,406) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision | (317) | 20,346 | 446 | 537 | 1,763 | (6) | 19,242 | 7,800 | 49,811 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 4,600 | $ | 35,607 | $ | 6,813 | $ | 609 | $ | 4,149 | $ | 11 | $ | 25,462 | $ | 23,950 | $ | 101,201 | |||||||||||||||||||||||||||||||||||||||||
Average loans outstanding | $ | 2,148,848 | $ | 861,096 | $ | 1,060,444 | $ | 13,799 | $ | 93,740 | $ | 10,703 | $ | 935,663 | $ | 215,994 | $ | 5,340,287 | |||||||||||||||||||||||||||||||||||||||||
Net charge-offs (recoveries) to average loans | (0.02) | % | — | % | — | % | 2.27 | % | — | % | — | % | 0.53 | % | 7.65 | % | 0.40 | % | |||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,976 | $ | 14,505 | $ | 6,371 | $ | 479 | $ | 2,790 | $ | 4 | $ | 9,225 | $ | 16,769 | $ | 52,119 | |||||||||||||||||||||||||||||||||||||||||
Charge-offs | (26) | — | (144) | (4) | — | — | (6,811) | (21,677) | (28,662) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 854 | — | 17 | 229 | — | — | 2,351 | 2,967 | 6,418 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net (charge-offs) recoveries | 828 | — | (127) | 225 | — | — | (4,460) | (18,710) | (22,244) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision | (424) | 548 | 678 | (255) | (693) | (1) | 5,480 | 18,147 | 23,480 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,380 | $ | 15,053 | $ | 6,922 | $ | 449 | $ | 2,097 | $ | 3 | $ | 10,245 | $ | 16,206 | $ | 53,355 | |||||||||||||||||||||||||||||||||||||||||
Average loans outstanding | $ | 2,164,759 | $ | 781,531 | $ | 1,043,479 | $ | 14,065 | $ | 81,937 | $ | 10,513 | $ | 620,206 | $ | 270,340 | $ | 4,986,830 | |||||||||||||||||||||||||||||||||||||||||
Net charge-offs (recoveries) to average loans | (0.04) | % | — | % | 0.01 | % | (1.60 | %) | — | % | — | % | 0.72 | % | 6.92 | % | 0.45 | % | |||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 898 | $ | 2 | $ | 322 | $ | — | $ | — | $ | — | $ | 1,015 | $ | 454 | $ | 2,691 | |||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,482 | $ | 15,051 | $ | 6,600 | $ | 449 | $ | 2,097 | $ | 3 | $ | 9,230 | $ | 15,752 | $ | 50,664 | |||||||||||||||||||||||||||||||||||||||||
Financing Receivables: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,178,135 | $ | 824,830 | $ | 1,092,125 | $ | 14,704 | $ | 70,605 | $ | 11,670 | $ | 670,674 | $ | 257,921 | $ | 5,120,664 | |||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 15,600 | $ | 1,048 | $ | 12,073 | $ | 3,091 | $ | — | $ | — | $ | 8,418 | $ | 507 | $ | 40,737 | |||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 2,162,535 | $ | 823,782 | $ | 1,080,052 | $ | 11,613 | $ | 70,605 | $ | 11,670 | $ | 662,256 | $ | 257,414 | $ | 5,079,927 | |||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 2,902 | $ | 15,796 | $ | 7,522 | $ | 896 | $ | 4,671 | $ | 12 | $ | 10,851 | $ | 10,987 | $ | 53,637 | |||||||||||||||||||||||||||||||||||||||||
Charge-offs
|
(128) | — | (353) | (18) | — | — | (2,722) | (17,296) | (20,517) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries
|
74 | — | 257 | 179 | — | — | 2,136 | 1,608 | 4,254 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net (charge-offs) recoveries | (54) | — | (96) | 161 | — | — | (586) | (15,688) | (16,263) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision
|
(872) | (1,291) | (1,055) | (578) | (1,881) | (8) | (1,040) | 21,470 | 14,745 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 1,976 | $ | 14,505 | $ | 6,371 | $ | 479 | $ | 2,790 | $ | 4 | $ | 9,225 | $ | 16,769 | $ | 52,119 | |||||||||||||||||||||||||||||||||||||||||
Average loans outstanding | $ | 2,105,674 | $ | 745,186 | $ | 944,065 | $ | 14,935 | $ | 114,969 | $ | 14,959 | $ | 579,133 | $ | 240,414 | $ | 4,759,335 | |||||||||||||||||||||||||||||||||||||||||
Net charge-offs (recoveries) to average loans | — | % | — | % | 0.01 | % | (1.08 | %) | — | % | — | % | 0.10 | % | 6.53 | % | 0.34 | % | |||||||||||||||||||||||||||||||||||||||||
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 |
(in thousands) |
Home equity
line of credit |
Commercial construction | Commercial loans | Total | ||||||||||||||||||||||
Year ended December 31, 2020 | ||||||||||||||||||||||||||
Allowance for loan commitments: | ||||||||||||||||||||||||||
Beginning balance, prior to adoption of ASU No. 2016-13 | $ | 392 | $ | 931 | $ | 418 | $ | 1,741 | ||||||||||||||||||
Impact of adopting ASU No. 2016-13 | (92) | 1,745 | (94) | 1,559 | ||||||||||||||||||||||
Provision | — | 324 | 676 | 1,000 | ||||||||||||||||||||||
Ending balance | $ | 300 | $ | 3,000 | $ | 1,000 | $ | 4,300 |
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Revolving loans | Converted to term loans | Total | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | $ | 567,282 | $ | 218,988 | $ | 111,243 | $ | 203,916 | $ | 184,888 | $ | 849,788 | $ | — | $ | — | $ | 2,136,105 | ||||||||||||||||||||||||||||||||||||||
30-59 days past due | — | — | — | — | — | 2,629 | — | — | 2,629 | |||||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | — | 476 | — | — | — | 2,314 | — | — | 2,790 | |||||||||||||||||||||||||||||||||||||||||||||||
Greater than 89 days past due | — | — | — | 353 | — | 2,362 | — | — | 2,715 | |||||||||||||||||||||||||||||||||||||||||||||||
567,282 | 219,464 | 111,243 | 204,269 | 184,888 | 857,093 | — | — | 2,144,239 | ||||||||||||||||||||||||||||||||||||||||||||||||
Home equity line of credit | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | — | — | — | — | — | — | 927,106 | 33,228 | 960,334 | |||||||||||||||||||||||||||||||||||||||||||||||
30-59 days past due | — | — | — | — | — | — | 552 | 298 | 850 | |||||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | — | — | — | — | — | — | 267 | 75 | 342 | |||||||||||||||||||||||||||||||||||||||||||||||
Greater than 89 days past due | — | — | — | — | — | — | 1,463 | 589 | 2,052 | |||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | 929,388 | 34,190 | 963,578 | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential land | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | 8,357 | 3,427 | 1,598 | 939 | 22 | 272 | — | — | 14,615 | |||||||||||||||||||||||||||||||||||||||||||||||
30-59 days past due | — | — | — | — | — | 702 | — | — | 702 | |||||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Greater than 89 days past due | — | — | — | — | — | 300 | — | — | 300 | |||||||||||||||||||||||||||||||||||||||||||||||
8,357 | 3,427 | 1,598 | 939 | 22 | 1,274 | — | — | 15,617 | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential construction | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | 6,919 | 3,093 | 385 | 625 | — | — | — | — | 11,022 | |||||||||||||||||||||||||||||||||||||||||||||||
30-59 days past due | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Greater than 89 days past due | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
6,919 | 3,093 | 385 | 625 | — | — | — | — | 11,022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | 28,818 | 67,159 | 37,072 | 7,207 | 293 | 348 | 18,351 | 3,758 | 163,006 | |||||||||||||||||||||||||||||||||||||||||||||||
30-59 days past due | 406 | 1,085 | 727 | 155 | 4 | — | 138 | 90 | 2,605 | |||||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | 191 | 549 | 427 | 165 | 3 | — | 97 | 59 | 1,491 | |||||||||||||||||||||||||||||||||||||||||||||||
Greater than 89 days past due | 131 | 532 | 409 | 119 | 7 | — | 262 | 171 | 1,631 | |||||||||||||||||||||||||||||||||||||||||||||||
29,546 | 69,325 | 38,635 | 7,646 | 307 | 348 | 18,848 | 4,078 | 168,733 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 270,603 | 63,301 | 62,168 | 28,432 | 55,089 | 155,654 | 11,000 | — | 646,247 | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | 10,261 | 36,405 | 57,952 | 33,763 | 68,287 | 48,094 | — | — | 254,762 | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard | — | 14,720 | 4,181 | 1,892 | 4,423 | 57,640 | — | — | 82,856 | |||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
280,864 | 114,426 | 124,301 | 64,087 | 127,799 | 261,388 | 11,000 | — | 983,865 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 14,480 | 31,965 | 26,990 | — | 5,562 | — | 22,517 | — | 101,514 | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | 1,910 | — | — | 18,000 | — | — | — | — | 19,910 | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
16,390 | 31,965 | 26,990 | 18,000 | 5,562 | — | 22,517 | — | 121,424 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 392,088 | 117,791 | 75,533 | 29,211 | 12,520 | 35,770 | 74,520 | 11,004 | 748,437 | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | 37,836 | 23,087 | 1,920 | 6,990 | 30,264 | 13,250 | 31,362 | 11,218 | 155,927 | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 304 | 7,785 | 2,043 | 4,017 | 7,542 | 3,113 | 5,265 | 1,928 | 31,997 | |||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | 387 | — | 387 | |||||||||||||||||||||||||||||||||||||||||||||||
430,228 | 148,663 | 79,496 | 40,218 | 50,326 | 52,133 | 111,534 | 24,150 | 936,748 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | 1,339,586 | $ | 590,363 | $ | 382,648 | $ | 335,784 | $ | 368,904 | $ | 1,172,236 | $ | 1,093,287 | $ | 62,418 | $ | 5,345,226 |
(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 |
||||||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 2,629 | $ | 2,790 | $ | 2,715 | $ | 8,134 | $ | 2,136,105 | $ | 2,144,239 | $ | — | |||||||||||||||||||||||||||
Commercial real estate | — | 488 | — | 488 | 983,377 | 983,865 | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 850 | 342 | 2,052 | 3,244 | 960,334 | 963,578 | — | ||||||||||||||||||||||||||||||||||
Residential land | 702 | — | 300 | 1,002 | 14,615 | 15,617 | — | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 121,424 | 121,424 | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 11,022 | 11,022 | — | ||||||||||||||||||||||||||||||||||
Commercial | 608 | 300 | 132 | 1,040 | 935,708 | 936,748 | — | ||||||||||||||||||||||||||||||||||
Consumer | 2,605 | 1,491 | 1,631 | 5,727 | 163,006 | 168,733 | — | ||||||||||||||||||||||||||||||||||
Total loans | $ | 7,394 | $ | 5,411 | $ | 6,830 | $ | 19,635 | $ | 5,325,591 | $ | 5,345,226 | $ | — | |||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 2,588 | $ | 290 | $ | 1,808 | $ | 4,686 | $ | 2,173,449 | $ | 2,178,135 | $ | — | |||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | 824,830 | 824,830 | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 813 | — | 2,117 | 2,930 | 1,089,195 | 1,092,125 | — | ||||||||||||||||||||||||||||||||||
Residential land | — | — | 25 | 25 | 14,679 | 14,704 | — | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 70,605 | 70,605 | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 11,670 | 11,670 | — | ||||||||||||||||||||||||||||||||||
Commercial | 1,077 | 311 | 172 | 1,560 | 669,114 | 670,674 | — | ||||||||||||||||||||||||||||||||||
Consumer | 4,386 | 3,257 | 2,907 | 10,550 | 247,371 | 257,921 | — | ||||||||||||||||||||||||||||||||||
Total loans | $ | 8,864 | $ | 3,858 | $ | 7,029 | $ | 19,751 | $ | 5,100,913 | $ | 5,120,664 | $ | — |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
(in thousands) |
With a Related
ACL |
Without a
Related ACL |
Total | Total | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential 1-4 family | $ | 8,991 | $ | 2,835 | $ | 11,826 | $ | 11,395 | |||||||||||||||
Commercial real estate | 15,847 | 2,875 | 18,722 | 195 | |||||||||||||||||||
Home equity line of credit | 5,791 | 1,567 | 7,358 | 6,638 | |||||||||||||||||||
Residential land | 108 | 300 | 408 | 448 | |||||||||||||||||||
Commercial construction | — | — | — | — | |||||||||||||||||||
Residential construction | — | — | — | — | |||||||||||||||||||
Commercial | 1,819 | 3,328 | 5,147 | 5,947 | |||||||||||||||||||
Consumer | 3,935 | — | 3,935 | 5,113 | |||||||||||||||||||
Total | $ | 36,491 | $ | 10,905 | $ | 47,396 | $ | 29,736 |
(in thousands) | December 31, 2020 | December 31, 2019 | |||||||||
Real estate: | |||||||||||
Residential 1-4 family | $ | 7,932 | $ | 9,869 | |||||||
Commercial real estate | 3,281 | 853 | |||||||||
Home equity line of credit | 8,148 | 10,376 | |||||||||
Residential land | 1,555 | 2,644 | |||||||||
Commercial construction | — | — | |||||||||
Residential construction | — | — | |||||||||
Commercial | 6,108 | 2,614 | |||||||||
Consumer | 54 | 57 | |||||||||
Total troubled debt restructured loans accruing interest | $ | 27,078 | $ | 26,413 |
Years ended | December 31, 2020 | December 31, 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)
|
|||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||
Residential 1-4 family | 1 | $ | 144 | $ | 6 | 11 | $ | 1,770 | $ | 190 | |||||||||||||||||||||||||
Commercial real estate | 6 | 20,714 | 4,439 | — | — | — | |||||||||||||||||||||||||||||
Home equity line of credit | 3 | 85 | 11 | 3 | 442 | 73 | |||||||||||||||||||||||||||||
Residential land | 4 | 668 | 54 | 3 | 1,086 | — | |||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Commercial | 54 | 5,380 | 869 | 8 | 5,523 | 417 | |||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||||||||||||||||
68 | $ | 26,991 | $ | 5,379 | 25 | $ | 8,821 | $ | 680 | ||||||||||||||||||||||||||
Year ended | December 31, 2018 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Number of contracts |
Outstanding
recorded
investment
(as of period end)1
|
Related allowance
(as of period end)
|
||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||
Residential 1-4 family | 3 | $ | 566 | $ | 26 | ||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | ||||||||||||||||||||||||||||||||
Home equity line of credit | 53 | 6,659 | 578 | ||||||||||||||||||||||||||||||||
Residential land | 2 | 1,338 | — | ||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | ||||||||||||||||||||||||||||||||
Residential construction | — | — | — | ||||||||||||||||||||||||||||||||
Commercial | 12 | 2,165 | 211 | ||||||||||||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||||||||||||
70 | $ | 10,728 | $ | 815 |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
(dollars in thousands) |
Number of
contracts |
Recorded
investment |
Number of
contracts |
Recorded
investment |
Number of
contracts |
Recorded
investment |
|||||||||||||||||||||||||||||
Troubled debt restructurings that subsequently defaulted
|
|||||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||
Residential 1-4 family | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | — | 1 | 81 | |||||||||||||||||||||||||||||
Residential land | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Commercial | — | — | — | — | 1 | 246 | |||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||||||||||||||||
— | $ | — | — | $ | — | 2 | $ | 327 |
December 31, 2020 | Amortized cost | Collateral type | ||||||||||||
(in thousands) | ||||||||||||||
Real estate: | ||||||||||||||
Residential 1-4 family | $ | 2,541 | Residential real estate property | |||||||||||
Commercial real estate | 2,875 | Commercial real estate property | ||||||||||||
Home equity line of credit | 1,567 | Residential real estate property | ||||||||||||
Residential land | 300 | Residential real estate property | ||||||||||||
Total real estate | 7,283 | |||||||||||||
Commercial | 934 | Business assets | ||||||||||||
Total | $ | 8,217 |
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) |
Commercial
real estate |
Commercial
construction |
Commercial | Total | |||||||||||||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 756,747 | $ | 68,316 | $ | 621,657 | $ | 1,446,720 | |||||||||||||||||||||||||||||||||||||||
Special mention | 4,451 | — | 29,921 | 34,372 | |||||||||||||||||||||||||||||||||||||||||||
Substandard | 63,632 | 2,289 | 19,096 | 85,017 | |||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Loss | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 824,830 | $ | 70,605 | $ | 670,674 | $ | 1,566,109 |
December 31 | 2019 | 2019 | 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 | $ | 6,817 | $ | 7,207 | $ | — | $ | 8,169 | $ | 907 | $ | 8,595 | $ | 445 | |||||||||||||||||||||||||||
Commercial real estate | 195 | 200 | — | 16 | — | — | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 1,984 | 2,135 | — | 2,020 | 84 | 2,206 | 75 | ||||||||||||||||||||||||||||||||||
Residential land | 3,091 | 3,294 | — | 2,662 | 129 | 1,532 | 40 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial | 1,948 | 2,285 | — | 4,534 | 276 | 3,275 | 28 | ||||||||||||||||||||||||||||||||||
Consumer | 2 | 2 | — | 21 | 4 | 22 | — | ||||||||||||||||||||||||||||||||||
14,037 | 15,123 | — | 17,422 | 1,400 | 15,630 | 588 | |||||||||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 8,783 | 8,835 | 898 | 8,390 | 359 | 8,878 | 363 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 853 | 853 | 2 | 886 | 37 | 982 | 42 | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 10,089 | 10,099 | 322 | 11,319 | 567 | 10,617 | 440 | ||||||||||||||||||||||||||||||||||
Residential land | — | — | — | 27 | — | 37 | 3 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial | 6,470 | 6,470 | 1,015 | 6,990 | 132 | 1,789 | 122 | ||||||||||||||||||||||||||||||||||
Consumer | 505 | 505 | 454 | 360 | 24 | 57 | 4 | ||||||||||||||||||||||||||||||||||
26,700 | 26,762 | 2,691 | 27,972 | 1,119 | 22,360 | 974 | |||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 15,600 | 16,042 | 898 | 16,559 | 1,266 | 17,473 | 808 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 1,048 | 1,053 | 2 | 902 | 37 | 982 | 42 | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 12,073 | 12,234 | 322 | 13,339 | 651 | 12,823 | 515 | ||||||||||||||||||||||||||||||||||
Residential land | 3,091 | 3,294 | — | 2,689 | 129 | 1,569 | 43 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial | 8,418 | 8,755 | 1,015 | 11,524 | 408 | 5,064 | 150 | ||||||||||||||||||||||||||||||||||
Consumer | 507 | 507 | 454 | 381 | 28 | 79 | 4 | ||||||||||||||||||||||||||||||||||
$ | 40,737 | $ | 41,885 | $ | 2,691 | $ | 45,394 | $ | 2,519 | $ | 37,990 | $ | 1,562 |
(in thousands) |
Gross
carrying amount1
|
Accumulated amortization1
|
Valuation allowance |
Net
carrying amount |
|||||||||||||||||||
December 31, 2020 | $ | 22,950 | $ | (12,670) | $ | (260) | $ | 10,020 | |||||||||||||||
December 31, 2019 | $ | 21,543 | $ | (12,442) | $ | — | $ | 9,101 |
(in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Mortgage servicing rights | |||||||||||||||||
Balance, January 1 | $ | 9,101 | $ | 8,062 | $ | 8,639 | |||||||||||
Amount capitalized | 5,096 | 2,987 | 1,045 | ||||||||||||||
Amortization | (3,917) | (1,948) | (1,622) | ||||||||||||||
Sale of mortgage servicing rights | — | — | — | ||||||||||||||
Other-than-temporary impairment | — | — | — | ||||||||||||||
Carrying amount before valuation allowance, December 31 | 10,280 | 9,101 | 8,062 | ||||||||||||||
Valuation allowance for mortgage servicing rights | |||||||||||||||||
Balance, January 1 | — | — | — | ||||||||||||||
Provision | 260 | — | — | ||||||||||||||
Other-than-temporary impairment | — | — | — | ||||||||||||||
Balance, December 31 | 260 | — | — | ||||||||||||||
Net carrying value of mortgage servicing rights | $ | 10,020 | $ | 9,101 | $ | 8,062 |
December 31 | 2020 | 2019 | |||||||||
(dollars in thousands) | |||||||||||
Unpaid principal balance | $ | 1,450,312 | $ | 1,276,437 | |||||||
Weighted average note rate | 3.68 | % | 3.96 | % | |||||||
Weighted average discount rate | 9.25 | % | 9.25 | % | |||||||
Weighted average prepayment speed | 17.7 | % | 11.4 | % |
December 31 | 2020 | 2019 | |||||||||
(in thousands) | |||||||||||
Prepayment rate: | |||||||||||
25 basis points adverse rate change | $ | (738) | $ | (950) | |||||||
50 basis points adverse rate change | (1,445) | (1,947) | |||||||||
Discount rate: | |||||||||||
25 basis points adverse rate change | (68) | (102) | |||||||||
50 basis points adverse rate change | (135) | (202) |
December 31 | 2020 | 2019 | |||||||||||||||||||||
(dollars in thousands) | Weighted-average stated rate | Amount | Weighted-average stated rate | Amount | |||||||||||||||||||
Savings | 0.03 | % | $ | 2,873,727 | 0.09 | % | $ | 2,379,522 | |||||||||||||||
Checking | |||||||||||||||||||||||
Interest-bearing | 0.02 | 1,196,675 | 0.09 | 1,062,122 | |||||||||||||||||||
Noninterest-bearing | — | 1,329,264 | — | 977,459 | |||||||||||||||||||
Commercial checking | — | 1,269,236 | — | 932,223 | |||||||||||||||||||
Money market | 0.09 | 169,225 | 0.69 | 150,751 | |||||||||||||||||||
Time certificates | 0.99 | 548,830 | 1.42 | 769,825 | |||||||||||||||||||
0.09 | % | $ | 7,386,957 | 0.24 | % | $ | 6,271,902 |
(in thousands) | |||||
2021 | $ | 348,420 | |||
2022 | 88,675 | ||||
2023 | 50,146 | ||||
2024 | 33,944 | ||||
2025 | 25,225 | ||||
Thereafter | 2,420 | ||||
$ | 548,830 |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in thousands) | |||||||||||||||||
Time certificates | $ | 7,944 | $ | 12,675 | $ | 11,044 | |||||||||||
Savings | 1,774 | 1,904 | 1,639 | ||||||||||||||
Money market | 465 | 953 | 602 | ||||||||||||||
Interest-bearing checking | 471 | 1,298 | 706 | ||||||||||||||
$ | 10,654 | $ | 16,830 | $ | 13,991 |
(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 | ||||||||||||||||||||
December 31, 2020 | $ | 90 | $ | — | $ | 90 | ||||||||||||||
December 31, 2019 | 115 | — | 115 |
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 | ||||||||||||||||||||
December 31, 2020 | $ | 90 | $ | 92 | $ | — | ||||||||||||||
December 31, 2019 | 115 | 130 | — | |||||||||||||||||
(dollars in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Amount outstanding as of December 31 | $ | 89,670 | $ | 115,110 | $ | 65,040 | |||||||||||
Average amount outstanding during the year | 73,738 | 79,598 | 99,162 | ||||||||||||||
Maximum amount outstanding as of any month-end | 100,580 | 115,110 | 152,255 | ||||||||||||||
Weighted-average interest rate as of December 31 | 0.02 | % | 0.98 | % | 0.75 | % | |||||||||||
Weighted-average interest rate during the year | 0.42 | % | 0.96 | % | 0.71 | % | |||||||||||
Weighted-average remaining days to maturity as of December 31 | 1 | 1 | 1 |
December 31 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Maturity | Repurchase liability |
Weighted-average
interest rate |
Collateralized by
mortgage-backed securities and federal agency obligations at fair value plus accrued interest |
Repurchase liability |
Weighted-average
interest rate |
Collateralized by
mortgage-backed securities and federal agency obligations at fair value plus accrued interest |
|||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Overnight | $ | 89,670 | 0.02 | % | $ | 92,478 | $ | 115,110 | 0.98 | % | $ | 129,527 | |||||||||||||||||||||||
1 to 29 days | — | — | % | — | — | — | % | — | |||||||||||||||||||||||||||
30 to 90 days | — | — | % | — | — | — | % | — | |||||||||||||||||||||||||||
Over 90 days | — | — | % | — | — | — | % | — | |||||||||||||||||||||||||||
$ | 89,670 | 0.02 | % | $ | 92,478 | $ | 115,110 | 0.98 | % | $ | 129,527 |
Actual | Minimum required | Required to be well capitalized | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Capital | Ratio | Capital | Ratio | Capital | Ratio | |||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Tier 1 leverage | $ | 677,786 | 8.38 | % | $ | 323,700 | 4.00 | % | $ | 404,625 | 5.00 | % | |||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Tier 1 leverage | 641,547 | 9.06 | % | 283,122 | 4.00 | % | 353,903 | 5.00 | % | ||||||||||||||||||||||||||
Common equity tier 1 | 641,547 | 13.18 | % | 219,071 | 4.50 | % | 316,435 | 6.50 | % | ||||||||||||||||||||||||||
Tier 1 capital | 641,547 | 13.18 | % | 292,094 | 6.00 | % | 389,459 | 8.00 | % | ||||||||||||||||||||||||||
Total capital | 696,643 | 14.31 | % | 389,459 | 8.00 | % | 486,823 | 10.00 | % |
December 31 | 2020 | 2019 | |||||||||||||||||||||
(in thousands) | Notional amount | Fair value | Notional amount | Fair value | |||||||||||||||||||
Interest rate lock commitments | $ | 120,980 | $ | 4,536 | $ | 23,171 | $ | 297 | |||||||||||||||
Forward commitments | 100,500 | (500) | 29,383 | (42) |
Derivative Financial Instruments Not Designated | |||||||||||||||||||||||
as Hedging Instruments 1
|
|||||||||||||||||||||||
December 31 | 2020 | 2019 | |||||||||||||||||||||
(in thousands) | Asset derivatives | Liability derivatives | Asset derivatives | Liability derivatives | |||||||||||||||||||
Interest rate lock commitments | $ | 4,536 | $ | — | $ | 297 | $ | — | |||||||||||||||
Forward commitments | — | 500 | 3 | 45 | |||||||||||||||||||
$ | 4,536 | $ | 500 | $ | 300 | $ | 45 |
Derivative Financial Instruments Not Designated | Location of net gains | ||||||||||||||||||||||
as Hedging Instruments | (losses) recognized in | Years ended December 31 | |||||||||||||||||||||
(in thousands) | the Statements of Income | 2020 | 2019 | 2018 | |||||||||||||||||||
Interest rate lock commitments | Mortgage banking income | $ | 4,239 | $ | 206 | $ | (40) | ||||||||||||||||
Forward commitments | Mortgage banking income | (458) | 1 | (19) | |||||||||||||||||||
$ | 3,781 | $ | 207 | $ | (59) |
December 31 | 2020 | 2019 | |||||||||
(in thousands) | |||||||||||
Unfunded commitments to extend credit: | |||||||||||
Home equity line of credit | $ | 1,248,773 | $ | 1,290,854 | |||||||
Commercial and commercial real estate | 574,281 | 484,806 | |||||||||
Consumer | 69,168 | 70,088 | |||||||||
Residential 1-4 family | 57,862 | 21,131 | |||||||||
Commercial and financial standby letters of credit | 13,718 | 11,912 | |||||||||
Total | $ | 1,963,802 | $ | 1,878,791 |
Note 5 · Short-term borrowings
|
Note 6 · Long-term debt
|
December 31 | 2020 | 2019 | |||||||||
(dollars in thousands) | |||||||||||
Long-term debt of Utilities, net of unamortized debt issuance costs 1
|
$ | 1,561,302 | $ | 1,497,667 | |||||||
HEI 5.67% senior notes, due 2021
|
50,000 | 50,000 | |||||||||
HEI 2.99% term loan, due 2022
|
150,000 | 150,000 | |||||||||
HEI 3.99% senior notes, due 2023
|
50,000 | 50,000 | |||||||||
HEI 4.58% senior notes, due 2025
|
50,000 | 50,000 | |||||||||
HEI 4.72% senior notes, due 2028
|
100,000 | 100,000 | |||||||||
HEI 2.98% senior notes, due 2030
|
50,000 | — | |||||||||
Hamakua Energy 4.02% notes, due 2030, secured by real and personal property of Hamakua Energy, LLC
|
56,030 | 59,699 | |||||||||
Mauo LIBOR + 1.375% loan, due 20232
|
41,046 | 9,349 | |||||||||
Ka`ie`ie Waho Company, LLC 2.79% non-recourse loan, due 2031
|
13,000 | — | |||||||||
Less unamortized debt issuance costs | (2,249) | (2,350) | |||||||||
$ | 2,119,129 | $ | 1,964,365 |
HEI Series 2020A | HEI Series 2020B (1) | HEI Series 2020B (2) | HEI Series 2020C | |||||||||||||||||||||||
Aggregate principal amount
|
$50 million | $46 million | $5 million | $24 million | ||||||||||||||||||||||
Fixed coupon interest rate
|
2.98% | 3.15% | 3.15% | 2.82% | ||||||||||||||||||||||
Maturity date | 12/15/2030 | 1/28/2031 | 1/28/2031 | 4/17/2028 | ||||||||||||||||||||||
Draw date | 12/29/2020 | 1/28/2021 | 4/16/2021 | 4/16/2021 |
Series 2020A | Series 2020B | Series 2020C | ||||||||||||||||||
Aggregate principal amount
|
$80 million | $60 million | $20 million | |||||||||||||||||
Fixed coupon interest rate
|
||||||||||||||||||||
Hawaiian Electric | 3.31% | 3.31% | 3.96% | |||||||||||||||||
Hawaii Electric Light | 3.96% | |||||||||||||||||||
Maui Electric | 3.31% | 3.96% | ||||||||||||||||||
Maturity date | ||||||||||||||||||||
Hawaiian Electric | 5/1/2030 | 5/1/2030 | 5/1/2050 | |||||||||||||||||
Hawaii Electric Light | 5/1/2050 | |||||||||||||||||||
Maui Electric | 5/1/2030 | 5/1/2050 | ||||||||||||||||||
Principal amount by company: | ||||||||||||||||||||
Hawaiian Electric |
$50 million
(Green Bond)
|
$40 million | $20 million | |||||||||||||||||
Hawaii Electric Light | $10 million | — | — | |||||||||||||||||
Maui Electric | $20 million | $20 million | — |
Series 2020B | Series 2020C | Series 2020D | Series 2020E | |||||||||||||||||||||||
Aggregate principal amount
|
$15 million | $40 million | $30 million | $30 million | ||||||||||||||||||||||
Fixed coupon interest rate
|
||||||||||||||||||||||||||
Hawaiian Electric | 3.28% | 3.51% | ||||||||||||||||||||||||
Hawaii Electric Light | 3.28% | 3.51% | ||||||||||||||||||||||||
Maui Electric | 3.51% | |||||||||||||||||||||||||
Maturity date | ||||||||||||||||||||||||||
Hawaiian Electric | 12/30/2040 | 12/30/2050 | ||||||||||||||||||||||||
Hawaii Electric Light | 12/30/2040 | 12/30/2050 | ||||||||||||||||||||||||
Maui Electric | 12/30/2050 | |||||||||||||||||||||||||
Principal amount by company: | ||||||||||||||||||||||||||
Hawaiian Electric | — | — | $30 million | $30 million | ||||||||||||||||||||||
Hawaii Electric Light | $15 million | $15 million | — | — | ||||||||||||||||||||||
Maui Electric | — | $25 million | — | — |
Note 7 · Shareholders’ equity
|
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, 2017 | $ | (14,951) | $ | — | $ | (26,990) | $ | (41,941) | $ | (1,219) | |||||||||||||||||||
Current period other comprehensive income (loss) and reclassifications, net of taxes
|
(9,472) | (436) | 1,239 | (8,669) | 1,318 | ||||||||||||||||||||||||
Balance, December 31, 2018 | (24,423) | (436) | (25,751) | (50,610) | 99 | ||||||||||||||||||||||||
Current period other comprehensive income (loss) and reclassifications, net of taxes
|
26,904 | (1,177) | 4,844 | 30,571 | (1,378) | ||||||||||||||||||||||||
Balance, December 31, 2019 | 2,481 | (1,613) | (20,907) | (20,039) | (1,279) | ||||||||||||||||||||||||
Current period other comprehensive income (loss) and reclassifications, net of taxes
|
17,505 | (1,750) | 3,020 | 18,775 | (1,640) | ||||||||||||||||||||||||
Balance, December 31, 2020 | $ | 19,986 | $ | (3,363) | $ | (17,887) | $ | (1,264) | $ | (2,919) |
Amount reclassified from AOCI |
Affected line item in the Statement of
Income/Balance Sheet |
|||||||||||||||||||||||||
Years ended December 31 | 2020 | 2019 | 2018 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
HEI consolidated | ||||||||||||||||||||||||||
Net realized gains on securities included in net income | $ | (1,638) | $ | (478) | $ | — | Gain on sale of investment securities, net | |||||||||||||||||||
Retirement benefit plans: | ||||||||||||||||||||||||||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | 23,689 | 10,107 | 21,015 | See Note 10 for additional details | ||||||||||||||||||||||
Impact of D&Os of the PUC included in regulatory assets | 39,860 | (16,177) | 8,325 | See Note 10 for additional details | ||||||||||||||||||||||
Total reclassifications | $ | 61,911 | $ | (6,548) | $ | 29,340 | ||||||||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||||||||
Retirement benefit plans: | ||||||||||||||||||||||||||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | $ | 21,550 | $ | 9,550 | $ | 19,012 | See Note 10 for additional details | |||||||||||||||||||
Impact of D&Os of the PUC included in regulatory assets | 39,860 | (16,177) | 8,325 | See Note 10 for additional details | ||||||||||||||||||||||
Total reclassifications | $ | 61,410 | $ | (6,627) | $ | 27,337 |
Note 8 · Leases
|
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||
Year ended December 31, 2020 | Other leases | PPAs classified as leases | Total | Other leases | PPAs classified as leases | Total | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Operating lease cost | $ | 11,201 | $ | 63,319 | $ | 74,520 | $ | 6,022 | $ | 63,319 | $ | 69,341 | |||||||||||
Variable lease cost | 12,765 | 217,173 | 229,938 | 9,842 | 217,173 | 227,015 | |||||||||||||||||
Total lease cost | $ | 23,966 | $ | 280,492 | $ | 304,458 | $ | 15,864 | $ | 280,492 | $ | 296,356 | |||||||||||
Other information | |||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ | 10,783 | $ | 60,801 | $ | 71,584 | $ | 6,223 | $ | 60,801 | $ | 67,024 | |||||||||||
Weighted-average remaining lease term—operating leases (in years) | 8.9 | 1.8 | 4.4 | 10.1 | 1.8 | 3.8 | |||||||||||||||||
Weighted-average discount rate—operating leases | 2.87 | % | 4.08 | % | 3.61 | % | 3.20 | % | 4.08 | % | 3.84 | % |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||
Year ended December 31, 2019 | Other leases | PPAs classified as leases | Total | Other leases | PPAs classified as leases | Total | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Operating lease cost | $ | 10,265 | $ | 63,319 | $ | 73,584 | $ | 4,955 | $ | 63,319 | $ | 68,274 | |||||||||||
Variable lease cost | 13,034 | 192,138 | 205,172 | 10,272 | 192,138 | 202,410 | |||||||||||||||||
Total lease cost | $ | 23,299 | $ | 255,457 | $ | 278,756 | $ | 15,227 | $ | 255,457 | $ | 270,684 | |||||||||||
Other information | |||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ | 10,447 | $ | 62,594 | $ | 73,041 | $ | 5,768 | $ | 62,594 | $ | 68,362 | |||||||||||
Weighted-average remaining lease term—operating leases (in years) | 6.5 | 2.8 | 3.5 | 4.5 | 2.8 | 2.9 | |||||||||||||||||
Weighted-average discount rate—operating leases | 3.50 | % | 4.08 | % | 3.96 | % | 4.11 | % | 4.08 | % | 4.08 | % |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||
(in millions) | Other leases | PPAs classified as leases | Total | Other leases | PPAs classified as leases | Total | |||||||||||||||||
2021 | $ | 11 | $ | 63 | $ | 74 | $ | 6 | $ | 63 | $ | 69 | |||||||||||
2022 | 9 | 42 | 51 | 4 | 42 | 46 | |||||||||||||||||
2023 | 8 | — | 8 | 4 | — | 4 | |||||||||||||||||
2024 | 7 | — | 7 | 3 | — | 3 | |||||||||||||||||
2025 | 5 | — | 5 | 3 | — | 3 | |||||||||||||||||
Thereafter | 27 | — | 27 | 19 | — | 19 | |||||||||||||||||
Total lease payments | 67 | 105 | 172 | 39 | 105 | 144 | |||||||||||||||||
Less: Imputed interest | (8) | (4) | (12) | (6) | (4) | (10) | |||||||||||||||||
Total present value of lease payments1
|
$ | 59 | $ | 101 | $ | 160 | $ | 33 | $ | 101 | $ | 134 |
Note 9· Revenues
|
Year ended December 31, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Electric utility | Bank | Other | Total | Electric utility | Bank | Other | Total | ||||||||||||||||||||||||||||||||||||||||||
Revenues from contracts with customers | ||||||||||||||||||||||||||||||||||||||||||||||||||
Electric energy sales - residential
|
$ | 766,609 | $ | — | $ | — | $ | 766,609 | $ | 807,652 | $ | — | $ | — | $ | 807,652 | ||||||||||||||||||||||||||||||||||
Electric energy sales - commercial
|
703,516 | — | — | 703,516 | 846,110 | — | — | 846,110 | ||||||||||||||||||||||||||||||||||||||||||
Electric energy sales - large light and power
|
751,464 | — | — | 751,464 | 905,308 | — | — | 905,308 | ||||||||||||||||||||||||||||||||||||||||||
Electric energy sales - other | 8,054 | — | — | 8,054 | 16,296 | — | — | 16,296 | ||||||||||||||||||||||||||||||||||||||||||
Bank fees | — | 38,887 | — | 38,887 | — | 46,659 | — | 46,659 | ||||||||||||||||||||||||||||||||||||||||||
Other sales | — | — | 921 | 921 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total revenues from contracts with customers | 2,229,643 | 38,887 | 921 | 2,269,451 | 2,575,366 | 46,659 | — | 2,622,025 | ||||||||||||||||||||||||||||||||||||||||||
Revenues from other sources | ||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory revenue | 11,869 | — | — | 11,869 | (54,101) | — | — | (54,101) | ||||||||||||||||||||||||||||||||||||||||||
Bank interest and dividend income
|
— | 244,663 | — | 244,663 | — | 266,554 | — | 266,554 | ||||||||||||||||||||||||||||||||||||||||||
Other bank noninterest income
|
— | 29,961 | — | 29,961 | — | 14,704 | — | 14,704 | ||||||||||||||||||||||||||||||||||||||||||
Other | 23,808 | — | 23 | 23,831 | 24,677 | — | 89 | 24,766 | ||||||||||||||||||||||||||||||||||||||||||
Total revenues from other sources | 35,677 | 274,624 | 23 | 310,324 | (29,424) | 281,258 | 89 | 251,923 | ||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 2,265,320 | $ | 313,511 | $ | 944 | $ | 2,579,775 | $ | 2,545,942 | $ | 327,917 | $ | 89 | $ | 2,873,948 | ||||||||||||||||||||||||||||||||||
Timing of revenue recognition | ||||||||||||||||||||||||||||||||||||||||||||||||||
Services/goods transferred at a point in time
|
$ | — | $ | 38,887 | $ | — | $ | 38,887 | $ | — | $ | 46,659 | $ | — | $ | 46,659 | ||||||||||||||||||||||||||||||||||
Services/goods transferred over time
|
2,229,643 | — | 921 | 2,230,564 | 2,575,366 | — | — | 2,575,366 | ||||||||||||||||||||||||||||||||||||||||||
Total revenues from contracts with customers | $ | 2,229,643 | $ | 38,887 | $ | 921 | $ | 2,269,451 | $ | 2,575,366 | $ | 46,659 | $ | — | $ | 2,622,025 |
Note 10 · Retirement benefits |
2020 | 2019 | ||||||||||||||||||||||
(in thousands) |
Pension
benefits |
Other
benefits |
Pension
benefits |
Other
benefits |
|||||||||||||||||||
Hawaiian Electric consolidated | |||||||||||||||||||||||
Benefit obligation, January 1 | $ | 2,110,904 | $ | 207,073 | $ | 1,837,653 | $ | 181,162 | |||||||||||||||
Service cost | 71,604 | 2,515 | 60,461 | 2,191 | |||||||||||||||||||
Interest cost | 75,484 | 7,103 | 77,851 | 7,673 | |||||||||||||||||||
Actuarial losses | 260,102 | 9,151 | 212,310 | 25,123 | |||||||||||||||||||
Participants contributions | — | 2,717 | — | 2,311 | |||||||||||||||||||
Benefits paid and expenses | (77,336) | (11,485) | (77,060) | (11,382) | |||||||||||||||||||
Transfers | — | — | (311) | (5) | |||||||||||||||||||
Benefit obligation, December 31 | 2,440,758 | 217,074 | 2,110,904 | 207,073 | |||||||||||||||||||
Fair value of plan assets, January 1 | 1,640,417 | 197,564 | 1,343,113 | 170,862 | |||||||||||||||||||
Actual return on plan assets | 276,453 | 27,207 | 326,204 | 34,928 | |||||||||||||||||||
Employer contributions | 69,720 | — | 47,808 | — | |||||||||||||||||||
Participants contributions | — | 2,717 | — | 2,311 | |||||||||||||||||||
Benefits paid and expenses | (76,860) | (11,173) | (76,581) | (10,532) | |||||||||||||||||||
Other | — | — | (127) | (5) | |||||||||||||||||||
Fair value of plan assets, December 31 | 1,909,730 | 216,315 | 1,640,417 | 197,564 | |||||||||||||||||||
Accrued benefit liability, December 31 | $ | (531,028) | $ | (759) | $ | (470,487) | $ | (9,509) | |||||||||||||||
Other liabilities (short-term) | (535) | (720) | (518) | (715) | |||||||||||||||||||
Defined benefit pension and other postretirement benefit plans liability
|
(530,493) | (39) | (469,969) | (8,794) | |||||||||||||||||||
Accrued benefit liability, December 31 | $ | (531,028) | $ | (759) | $ | (470,487) | $ | (9,509) | |||||||||||||||
AOCI debit, January 1 (excluding impact of PUC D&Os) | $ | 478,078 | $ | 5,730 | $ | 502,189 | $ | 1,551 | |||||||||||||||
Recognized during year – prior service credit (cost) | (9) | 1,758 | (7) | 1,803 | |||||||||||||||||||
Recognized during year – net actuarial losses | (30,566) | (207) | (14,658) | — | |||||||||||||||||||
Occurring during year – net actuarial losses (gains) | 91,018 | (6,100) | (9,446) | 2,376 | |||||||||||||||||||
AOCI debit before cumulative impact of PUC D&Os, December 31
|
538,521 | 1,181 | 478,078 | 5,730 | |||||||||||||||||||
Cumulative impact of PUC D&Os | (534,594) | (1,177) | (474,628) | (7,458) | |||||||||||||||||||
AOCI debit/(credit), December 31 | $ | 3,927 | $ | 4 | $ | 3,450 | $ | (1,728) | |||||||||||||||
Net actuarial loss | $ | 538,521 | $ | 4,508 | $ | 478,069 | $ | 10,815 | |||||||||||||||
Prior service cost (gain) | — | (3,327) | 9 | (5,085) | |||||||||||||||||||
AOCI debit before cumulative impact of PUC D&Os, December 31
|
538,521 | 1,181 | 478,078 | 5,730 | |||||||||||||||||||
Cumulative impact of PUC D&Os | (534,594) | (1,177) | (474,628) | (7,458) | |||||||||||||||||||
AOCI debit/(credit), December 31 | 3,927 | 4 | 3,450 | (1,728) | |||||||||||||||||||
Income taxes (benefits) | (1,011) | (1) | (888) | 445 | |||||||||||||||||||
AOCI debit/(credit), net of taxes (benefits), December 31 | $ | 2,916 | $ | 3 | $ | 2,562 | $ | (1,283) |
Pension benefits1
|
Other benefits2
|
||||||||||||||||||||||||||||||||||||||||||||||
Investment policy | Investment policy | ||||||||||||||||||||||||||||||||||||||||||||||
December 31 | 2020 | 2019 | Target | Range | 2020 | 2019 | Target | Range | |||||||||||||||||||||||||||||||||||||||
Assets held by category | |||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 72 | % | 71 | % | 70 | % |
65-75
|
73 | % | 71 | % | 70 | % |
65-75
|
|||||||||||||||||||||||||||||||||
Fixed income securities | 28 | 29 | 30 |
25-35
|
27 | 29 | 30 |
25-35
|
|||||||||||||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
Pension benefits | Other benefits | ||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurements using | Fair value measurements using | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | December 31 |
Quoted prices in active markets for identical assets
(Level 1) |
Significant other observable inputs
(Level 2) |
Significant unobservable inputs
(Level 3) |
December 31 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | $ | 540 | $ | 540 | $ | — | $ | — | $ | 68 | $ | 68 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Equity index and exchange-traded funds
|
734 | 734 | — | — | 77 | 77 | — | — | |||||||||||||||||||||||||||||||||||||||
Equity investments at net asset value (NAV)
|
102 | — | — | — | 13 | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total equity investments
|
1,376 | 1,274 | — | — | 158 | 145 | — | — | |||||||||||||||||||||||||||||||||||||||
Fixed income securities and public mutual funds
|
363 | 105 | 258 | — | 53 | 51 | 2 | — | |||||||||||||||||||||||||||||||||||||||
Fixed income investments at NAV
|
278 | — | — | — | 5 | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total fixed income investments
|
641 | 105 | 258 | — | 58 | 51 | 2 | — | |||||||||||||||||||||||||||||||||||||||
Cash equivalents, fund and at NAV | 68 | 25 | — | — | 4 | 3 | — | — | |||||||||||||||||||||||||||||||||||||||
Total | 2,085 | $ | 1,404 | $ | 258 | $ | — | 220 | $ | 199 | $ | 2 | $ | — | |||||||||||||||||||||||||||||||||
Cash, receivables and payables, net
|
4 | — | |||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets
|
$ | 2,089 | $ | 220 | |||||||||||||||||||||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | $ | 470 | $ | 470 | $ | — | $ | — | $ | 61 | $ | 61 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Equity index and exchange-traded funds
|
610 | 610 | — | — | 69 | 69 | — | — | |||||||||||||||||||||||||||||||||||||||
Equity investments at NAV | 78 | — | — | — | 11 | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total equity investments
|
1,158 | 1,080 | — | — | 141 | 130 | — | — | |||||||||||||||||||||||||||||||||||||||
Fixed income securities and public mutual funds
|
353 | 123 | 230 | — | 52 | 49 | 2 | — | |||||||||||||||||||||||||||||||||||||||
Fixed income investments at NAV
|
245 | — | — | — | 4 | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total fixed income investments
|
598 | 123 | 230 | — | 56 | 49 | 2 | — | |||||||||||||||||||||||||||||||||||||||
Cash equivalents at NAV
|
39 | — | — | — | 4 | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | 1,795 | $ | 1,203 | $ | 230 | $ | — | 201 | $ | 179 | $ | 2 | $ | — | |||||||||||||||||||||||||||||||||
Cash, receivables and payables, net
|
4 | — | |||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets
|
$ | 1,799 | $ | 201 |
Pension benefits | Other benefits | ||||||||||||||||||||||||||||||||||
Measured at net asset value | December 31 | Redemption frequency | Redemption notice period | December 31 | Redemption frequency | Redemption notice period | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||
Non U.S. equity funds (a) | $ | 102 | Daily-Monthly |
5-30 days
|
$ | 13 | Daily-Monthly |
5-30 days
|
|||||||||||||||||||||||||||
Fixed income investments (b)
|
278 | Monthly |
15 days
|
5 | Monthly |
15 days
|
|||||||||||||||||||||||||||||
Cash equivalents (c)
|
43 | Daily |
0-1 day
|
1 | Daily |
0-1 day
|
|||||||||||||||||||||||||||||
$ | 423 | $ | 19 | ||||||||||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||||||
Non U.S. equity funds (a) | $ | 78 | Daily-Monthly |
5-30 days
|
$ | 11 | Daily-Monthly |
5-30 days
|
|||||||||||||||||||||||||||
Fixed income investments (b)
|
245 | Monthly |
15 days
|
4 | Monthly |
15 days
|
|||||||||||||||||||||||||||||
Cash equivalents (c)
|
39 | Daily |
0-1 day
|
4 | Daily |
0-1 day
|
|||||||||||||||||||||||||||||
$ | 362 | $ | 19 |
Pension benefits | Other benefits | ||||||||||||||||||||||||||||||||||
December 31 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
Benefit obligation | |||||||||||||||||||||||||||||||||||
Discount rate1
|
2.92 | % | 3.61 | % | 4.31 | % | 2.83 | % | 3.52 | % | 4.34 | % | |||||||||||||||||||||||
Rate of compensation increase | 3.5 | 3.5 | 3.5 | NA | NA | NA | |||||||||||||||||||||||||||||
Net periodic pension/benefit cost (years ended) | |||||||||||||||||||||||||||||||||||
Discount rate2
|
3.61 | 4.31 | 3.74 | 3.52 | 4.34 | 3.72 | |||||||||||||||||||||||||||||
Expected return on plan assets3
|
7.25 | 7.25 | 7.50 | 7.25 | 7.25 | 7.50 | |||||||||||||||||||||||||||||
Rate of compensation increase4
|
3.5 | 3.5 | 3.5 | NA | NA | NA |
Pension benefits | Other benefits | ||||||||||||||||||||||||||||||||||
(in thousands) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
HEI consolidated | |||||||||||||||||||||||||||||||||||
Service cost | $ | 73,387 | $ | 62,135 | $ | 68,987 | $ | 2,537 | $ | 2,209 | $ | 2,721 | |||||||||||||||||||||||
Interest cost | 81,335 | 84,267 | 77,374 | 7,407 | 8,004 | 7,933 | |||||||||||||||||||||||||||||
Expected return on plan assets | (113,800) | (111,989) | (108,953) | (12,124) | (12,356) | (12,908) | |||||||||||||||||||||||||||||
Amortization of net prior service gain
|
8 | (42) | (42) | (1,761) | (1,806) | (1,805) | |||||||||||||||||||||||||||||
Amortization of net actuarial losses
|
33,456 | 15,479 | 30,084 | 208 | (13) | 95 | |||||||||||||||||||||||||||||
Net periodic pension/benefit cost | 74,386 | 49,850 | 67,450 | (3,733) | (3,962) | (3,964) | |||||||||||||||||||||||||||||
Impact of PUC D&Os | 20,997 | 48,143 | 25,828 | 3,179 | 3,258 | 3,842 | |||||||||||||||||||||||||||||
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
|
$ | 95,383 | $ | 97,993 | $ | 93,278 | $ | (554) | $ | (704) | $ | (122) | |||||||||||||||||||||||
Hawaiian Electric consolidated
|
|||||||||||||||||||||||||||||||||||
Service cost
|
$ | 71,604 | $ | 60,461 | $ | 67,359 | $ | 2,515 | $ | 2,191 | $ | 2,704 | |||||||||||||||||||||||
Interest cost
|
75,484 | 77,851 | 71,294 | 7,103 | 7,673 | 7,628 | |||||||||||||||||||||||||||||
Expected return on plan assets
|
(107,369) | (104,632) | (102,368) | (11,957) | (12,180) | (12,713) | |||||||||||||||||||||||||||||
Amortization of net prior service (gain) cost
|
9 | 7 | 8 | (1,758) | (1,803) | (1,803) | |||||||||||||||||||||||||||||
Amortization of net actuarial losses
|
30,566 | 14,658 | 27,302 | 207 | — | 98 | |||||||||||||||||||||||||||||
Net periodic pension/benefit cost | 70,294 | 48,345 | 63,595 | (3,890) | (4,119) | (4,086) | |||||||||||||||||||||||||||||
Impact of PUC D&Os
|
20,997 | 48,143 | 25,828 | 3,179 | 3,258 | 3,842 | |||||||||||||||||||||||||||||
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
|
$ | 91,291 | $ | 96,488 | $ | 89,423 | $ | (711) | $ | (861) | $ | (244) |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||
December 31 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
(in billions) | |||||||||||||||||||||||
Defined benefit plans - ABOs
|
$ | 2.3 | $ | 2.0 | $ | 2.1 | $ | 1.8 | |||||||||||||||
Defined benefit plans with ABO in excess of plan assets
|
|||||||||||||||||||||||
ABOs
|
2.1 | 1.9 | 2.1 | 1.8 | |||||||||||||||||||
Fair value of plan assets
|
2.0 | 1.7 | 1.9 | 1.6 | |||||||||||||||||||
Defined benefit plans with PBOs in excess of plan assets
|
|||||||||||||||||||||||
PBOs
|
2.5 | 2.2 | 2.4 | 2.1 | |||||||||||||||||||
Fair value of plan assets
|
2.0 | 1.7 | 1.9 | 1.6 |
Note 11 · Share-based compensation
|
(in millions) | 2020 | 2019 | 2018 | ||||||||||||||
HEI consolidated | |||||||||||||||||
Share-based compensation expense1
|
$ | 5.8 | $ | 10.0 | $ | 7.8 | |||||||||||
Income tax benefit | 1.0 | 1.4 | 1.1 | ||||||||||||||
Hawaiian Electric consolidated | |||||||||||||||||
Share-based compensation expense1
|
1.8 | 3.2 | 2.7 | ||||||||||||||
Income tax benefit | 0.4 | 0.6 | 0.5 |
(dollars in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Shares granted | 36,100 | 36,344 | 38,821 | ||||||||||||||
Fair value | $ | 1.3 | $ | 1.6 | $ | 1.3 | |||||||||||
Income tax benefit | 0.3 | 0.4 | 0.3 |
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Shares | (1) | Shares | (1) | Shares | (1) | ||||||||||||||||||||||||||||||
Outstanding, January 1 | 207,641 | $ | 35.36 | 200,358 | $ | 33.05 | 197,047 | $ | 31.53 | ||||||||||||||||||||||||||
Granted | 78,595 | 47.99 | 96,565 | 37.82 | 93,853 | 34.12 | |||||||||||||||||||||||||||||
Vested | (77,719) | 34.19 | (76,813) | 32.61 | (75,683) | 30.56 | |||||||||||||||||||||||||||||
Forfeited | (14,578) | 36.20 | (12,469) | 34.20 | (14,859) | 32.35 | |||||||||||||||||||||||||||||
Outstanding, December 31 | 193,939 | $ | 40.89 | 207,641 | $ | 35.36 | 200,358 | $ | 33.05 | ||||||||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted (in millions)
|
$ | 3.8 | $ | 3.7 | $ | 3.2 |
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Shares | (1) | Shares | (1) | Shares | (1) | ||||||||||||||||||||||||||||||
Outstanding, January 1 | 96,402 | $ | 39.62 | 65,578 | $ | 38.81 | 32,904 | $ | 39.51 | ||||||||||||||||||||||||||
Granted | 24,630 | 48.62 | 35,215 | 41.07 | 37,832 | 38.21 | |||||||||||||||||||||||||||||
Vested (issued or unissued and cancelled) | (29,409) | 39.51 | — | — | — | — | |||||||||||||||||||||||||||||
Forfeited | (2,401) | 41.22 | (4,391) | 39.19 | (5,158) | 38.84 | |||||||||||||||||||||||||||||
Outstanding, December 31 | 89,222 | $ | 42.10 | 96,402 | $ | 39.62 | 65,578 | $ | 38.81 | ||||||||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted (in millions)
|
$ | 1.2 | $ | 1.4 | $ | 1.4 |
2020 | 2019 | 2018 | |||||||||||||||
Risk-free interest rate | 1.39 | % | 2.48 | % | 2.29 | % | |||||||||||
Expected life in years | 3 | 3 | 3 | ||||||||||||||
Expected volatility | 13.1 | % | 15.8 | % | 17.0 | % | |||||||||||
Range of expected volatility for Peer Group |
13.6% to 95.4%
|
15.0% to 73.2%
|
15.1% to 26.2%
|
||||||||||||||
Grant date fair value (per share) | $ | 48.62 | $ | 41.07 | $ | 38.20 |
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Shares | (1) | Shares | (1) | Shares | (1) | ||||||||||||||||||||||||||||||
Outstanding, January 1 | 403,768 | $ | 35.15 | 276,169 | $ | 33.80 | 131,616 | $ | 33.47 | ||||||||||||||||||||||||||
Granted | 98,522 | 48.10 | 140,855 | 37.78 | 151,328 | 34.12 | |||||||||||||||||||||||||||||
Vested | (135,804) | 33.48 | — | — | — | — | |||||||||||||||||||||||||||||
Increase above target (cancelled) | (136,163) | 36.44 | 4,314 | 33.53 | 13,858 | 33.49 | |||||||||||||||||||||||||||||
Forfeited | (9,608) | 38.36 | (17,570) | 34.66 | (20,633) | 33.80 | |||||||||||||||||||||||||||||
Outstanding, December 31 | 220,715 | $ | 41.03 | 403,768 | $ | 35.15 | 276,169 | $ | 33.80 | ||||||||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions)
|
$ | 4.7 | $ | 5.3 | $ | 5.2 |
Note 12 · Income taxes
|
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||||||||||||||
Years ended December 31 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Federal | |||||||||||||||||||||||||||||||||||
Current | $ | 23,207 | $ | 28,736 | $ | 42,903 | $ | 31,950 | $ | 21,751 | $ | 29,649 | |||||||||||||||||||||||
Deferred | (4,215) | (4,353) | (6,099) | (5,408) | (7,793) | (5,245) | |||||||||||||||||||||||||||||
Deferred tax credits, net* | 10,979 | 13,410 | (12) | 1,549 | 13,155 | (12) | |||||||||||||||||||||||||||||
29,971 | 37,793 | 36,792 | 28,091 | 27,113 | 24,392 | ||||||||||||||||||||||||||||||
State | |||||||||||||||||||||||||||||||||||
Current | 8,430 | 10,472 | 17,361 | 3,768 | 5,579 | 13,210 | |||||||||||||||||||||||||||||
Deferred | 2,509 | (10,732) | (3,269) | 8,559 | (8,491) | (2,737) | |||||||||||||||||||||||||||||
Deferred tax credits, net* | — | 14,104 | (87) | — | 14,104 | (87) | |||||||||||||||||||||||||||||
10,939 | 13,844 | 14,005 | 12,327 | 11,192 | 10,386 | ||||||||||||||||||||||||||||||
Total | $ | 40,910 | $ | 51,637 | $ | 50,797 | $ | 40,418 | $ | 38,305 | $ | 34,778 |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||||||||||||||
Years ended December 31 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Amount at the federal statutory income tax rate | $ | 50,531 | $ | 56,996 | $ | 53,437 | $ | 44,468 | $ | 41,399 | $ | 37,889 | |||||||||||||||||||||||
Increase (decrease) resulting from: | |||||||||||||||||||||||||||||||||||
State income taxes, net of federal income tax benefit
|
9,448 | 11,658 | 11,832 | 9,658 | 8,703 | 8,080 | |||||||||||||||||||||||||||||
Net deferred tax asset (liability) adjustment related to the Tax Act
|
(11,267) | (9,255) | (9,540) | (11,267) | (9,255) | (9,285) | |||||||||||||||||||||||||||||
Other, net | (7,802) | (7,762) | (4,932) | (2,441) | (2,542) | (1,906) | |||||||||||||||||||||||||||||
Total | $ | 40,910 | $ | 51,637 | $ | 50,797 | $ | 40,418 | $ | 38,305 | $ | 34,778 | |||||||||||||||||||||||
Effective income tax rate | 17.0 | % | 19.0 | % | 20.0 | % | 19.1 | % | 19.4 | % | 19.3 | % |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||
December 31 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Deferred tax assets | |||||||||||||||||||||||
Regulatory liabilities, excluding amounts attributable to property, plant and equipment
|
$ | 93,684 | $ | 100,427 | $ | 93,684 | $ | 100,427 | |||||||||||||||
Operating lease liabilities | 41,582 | 51,573 | 34,586 | 45,608 | |||||||||||||||||||
Revenue taxes | 22,726 | 20,922 | 22,726 | 20,922 | |||||||||||||||||||
Allowance for bad debts | 31,973 | 14,858 | 4,835 | 560 | |||||||||||||||||||
Other1
|
44,127 | 33,106 | 24,741 | 20,259 | |||||||||||||||||||
Total deferred tax assets | 234,092 | 220,886 | 180,572 | 187,776 | |||||||||||||||||||
Deferred tax liabilities | |||||||||||||||||||||||
Property, plant and equipment related | 487,209 | 464,312 | 473,734 | 458,349 | |||||||||||||||||||
Operating lease right-of-use assets
|
41,370 | 51,542 | 34,586 | 45,608 | |||||||||||||||||||
Regulatory assets, excluding amounts attributable to property, plant and equipment
|
25,841 | 33,897 | 25,841 | 33,897 | |||||||||||||||||||
Retirement benefits | 18,407 | 9,684 | 20,537 | 13,072 | |||||||||||||||||||
Other | 56,354 | 40,776 | 23,672 | 14,001 | |||||||||||||||||||
Total deferred tax liabilities | 629,181 | 600,211 | 578,370 | 564,927 | |||||||||||||||||||
Net deferred income tax liability | $ | 395,089 | $ | 379,325 | $ | 397,798 | $ | 377,151 |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||||||||||||||
(in millions) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
Unrecognized tax benefits, January 1 | $ | 2.2 | $ | 2.1 | $ | 4.0 | $ | 1.7 | $ | 1.6 | $ | 3.5 | |||||||||||||||||||||||
Additions based on tax positions taken during the year | 0.2 | 0.5 | 0.3 | 0.2 | 0.5 | 0.3 | |||||||||||||||||||||||||||||
Reductions based on tax positions taken during the year | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Additions for tax positions of prior years | 11.6 | 0.1 | 0.1 | 11.6 | 0.1 | 0.1 | |||||||||||||||||||||||||||||
Reductions for tax positions of prior years | (0.1) | (0.2) | (0.1) | (0.1) | (0.2) | (0.1) | |||||||||||||||||||||||||||||
Lapses of statute of limitations | (0.2) | (0.3) | (2.2) | (0.2) | (0.3) | (2.2) | |||||||||||||||||||||||||||||
Settlement | (1.0) | — | — | (0.5) | — | — | |||||||||||||||||||||||||||||
Unrecognized tax benefits, December 31 | $ | 12.7 | $ | 2.2 | $ | 2.1 | $ | 12.7 | $ | 1.7 | $ | 1.6 |
Note 13 · Cash flows
|
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in millions) | |||||||||||||||||
Supplemental disclosures of cash flow information | |||||||||||||||||
HEI consolidated | |||||||||||||||||
Interest paid to non-affiliates, net of amounts capitalized | $ | 98 | $ | 107 | $ | 102 | |||||||||||
Income taxes paid (including refundable credits) | 32 | 56 | 72 | ||||||||||||||
Income taxes refunded (including refundable credits) | 3 | 4 | 34 | ||||||||||||||
Hawaiian Electric consolidated | |||||||||||||||||
Interest paid to non-affiliates, net of amounts capitalized | 65 | 68 | 73 | ||||||||||||||
Income taxes paid (including refundable credits) | 41 | 55 | 64 | ||||||||||||||
Income taxes refunded (including refundable credits) | 3 | 4 | 31 | ||||||||||||||
Supplemental disclosures of noncash activities | |||||||||||||||||
HEI consolidated | |||||||||||||||||
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 44 | 64 | 59 | ||||||||||||||
Right-of-use assets obtained in exchange for operating lease obligations (investing) | 26 | 7 | — | ||||||||||||||
Common stock issued (gross) for director and executive/management compensation (financing)1
|
16 | 5 | 4 | ||||||||||||||
Obligations to fund low income housing investments, net (investing) | 25 | 11 | 12 | ||||||||||||||
Transfer of retail repurchase agreements to deposit liabilities (financing) | — | — | 102 | ||||||||||||||
Hawaiian Electric consolidated | |||||||||||||||||
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 41 | 62 | 44 | ||||||||||||||
Right-of-use assets obtained in exchange for operating lease obligations (investing) | 17 | 2 | — | ||||||||||||||
HEI Consolidated and Hawaiian Electric consolidated | |||||||||||||||||
Electric utility property, plant and equipment | |||||||||||||||||
Estimated fair value of noncash contributions in aid of construction (investing) | 10 | 9 | 14 | ||||||||||||||
Acquisition of Hawaiian Telcom’s interest in joint poles (investing) | — | — | 48 | ||||||||||||||
Reduction of long-term debt from funds previously transferred for repayment (financing) | 82 | — | — |
Note 14 · Regulatory restrictions on net assets
|
Note 15 · Significant group concentrations of credit risk
|
Note 16 · Fair value measurements
|
Estimated fair value | |||||||||||||||||||||||||||||
(in thousands) |
Carrying or notional
amount |
Quoted prices in active markets for identical assets
(Level 1) |
Significant other observable inputs
(Level 2) |
Significant unobservable inputs
(Level 3) |
Total | ||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||||||
HEI consolidated | |||||||||||||||||||||||||||||
Available-for-sale investment securities
|
$ | 1,970,417 | $ | — | $ | 1,943,232 | $ | 27,185 | $ | 1,970,417 | |||||||||||||||||||
Held-to-maturity investment securities
|
226,947 | — | 229,963 | — | 229,963 | ||||||||||||||||||||||||
Stock in Federal Home Loan Bank
|
8,680 | — | 8,680 | — | 8,680 | ||||||||||||||||||||||||
Loans, net | 5,260,917 | — | 28,354 | 5,410,976 | 5,439,330 | ||||||||||||||||||||||||
Mortgage servicing rights | 10,020 | — | 10,705 | 10,705 | |||||||||||||||||||||||||
Derivative assets | 120,980 | — | 4,536 | — | 4,536 | ||||||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||||||
HEI consolidated | |||||||||||||||||||||||||||||
Deposit liabilities | 548,830 | — | 552,800 | — | 552,800 | ||||||||||||||||||||||||
Short-term borrowings—other than bank | 129,379 | — | 129,379 | — | 129,379 | ||||||||||||||||||||||||
Other bank borrowings | 89,670 | — | 89,669 | — | 89,669 | ||||||||||||||||||||||||
Long-term debt, net—other than bank | 2,119,129 | — | 2,487,790 | — | 2,487,790 | ||||||||||||||||||||||||
Derivative liabilities
|
137,500 | 500 | 4,530 | — | 5,030 | ||||||||||||||||||||||||
Hawaiian Electric consolidated | |||||||||||||||||||||||||||||
Short-term borrowings
|
49,979 | — | 49,979 | — | 49,979 | ||||||||||||||||||||||||
Long-term debt, net
|
1,561,302 | — | 1,890,490 | — | 1,890,490 | ||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||||||
HEI consolidated | |||||||||||||||||||||||||||||
Available-for-sale investment securities
|
$ | 1,232,826 | $ | — | $ | 1,204,229 | $ | 28,597 | $ | 1,232,826 | |||||||||||||||||||
Held-to-maturity investment securities
|
139,451 | — | 143,467 | — | 143,467 | ||||||||||||||||||||||||
Stock in Federal Home Loan Bank
|
8,434 | — | 8,434 | — | 8,434 | ||||||||||||||||||||||||
Loans, net | 5,080,107 | — | 12,295 | 5,145,242 | 5,157,537 | ||||||||||||||||||||||||
Mortgage servicing rights | 9,101 | — | — | 12,379 | 12,379 | ||||||||||||||||||||||||
Derivative assets | 25,179 | — | 300 | — | 300 | ||||||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||||||
HEI consolidated | |||||||||||||||||||||||||||||
Deposit liabilities | 769,825 | — | 765,976 | — | 765,976 | ||||||||||||||||||||||||
Short-term borrowings—other than bank | 185,710 | — | 185,710 | — | 185,710 | ||||||||||||||||||||||||
Other bank borrowings | 115,110 | — | 115,107 | — | 115,107 | ||||||||||||||||||||||||
Long-term debt, net—other than bank | 1,964,365 | 2,156,927 | 2,156,927 | ||||||||||||||||||||||||||
Derivative liabilities | 51,375 | 33 | 2,185 | — | 2,218 | ||||||||||||||||||||||||
Hawaiian Electric consolidated | |||||||||||||||||||||||||||||
Short-term borrowings
|
88,987 | — | 88,987 | — | 88,987 | ||||||||||||||||||||||||
Long-term debt, net
|
1,497,667 | — | 1,670,189 | — | 1,670,189 | ||||||||||||||||||||||||
December 31 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
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
|
$ | — | $ | 1,849,559 | $ | — | $ | — | $ | 1,026,385 | $ | — | |||||||||||||||||||||||
U.S. Treasury and federal agency obligations | — | 62,322 | — | — | 117,787 | — | |||||||||||||||||||||||||||||
Corporate bonds | — | 31,351 | — | — | 60,057 | — | |||||||||||||||||||||||||||||
Mortgage revenue bonds | — | — | 27,185 | — | — | 28,597 | |||||||||||||||||||||||||||||
$ | — | $ | 1,943,232 | $ | 27,185 | $ | — | $ | 1,204,229 | $ | 28,597 | ||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||||||||||||
Interest rate lock commitments (bank segment)1
|
$ | — | $ | 4,536 | $ | — | $ | — | $ | 297 | $ | — | |||||||||||||||||||||||
Forward commitments (bank segment)1
|
— | — | — | — | 3 | — | |||||||||||||||||||||||||||||
$ | — | $ | 4,536 | $ | — | $ | — | $ | 300 | $ | — | ||||||||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||||||||||||||
Forward commitments (bank segment)1
|
$ | 500 | $ | — | $ | — | $ | 33 | $ | 12 | $ | — | |||||||||||||||||||||||
Interest rate swap (Other segment)2
|
— | 4,530 | — | — | 2,173 | — | |||||||||||||||||||||||||||||
$ | 500 | $ | 4,530 | $ | — | $ | 33 | $ | 2,185 | $ | — |
(in thousands) | 2020 | 2019 | ||||||
Mortgage revenue bonds | ||||||||
Balance, January 1 | $ | 28,597 | $ | 23,636 | ||||
Principal payments received | (1,641) | — | ||||||
Purchases | 229 | 4,961 | ||||||
Unrealized gain (loss) included in other comprehensive income | — | — | ||||||
Balance, December 31 | $ | 27,185 | $ | 28,597 |
Fair value measurements using | |||||||||||||||||||||||
(in thousands) | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Loans | $ | 387 | $ | — | $ | — | $ | 387 | |||||||||||||||
Mortgage servicing rights | 3,001 | — | — | 3,001 | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Loans | 25 | — | — | 25 | |||||||||||||||||||
Significant unobservable
input value (1) |
|||||||||||||||||||||||||||||
(dollars in thousands) | Fair value | Valuation technique | Significant unobservable input | Range |
Weighted
Average |
||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Commercial loan | $ | 387 | Fair value of collateral | Appraised value less selling cost | N/A (2) | N/A (2) | |||||||||||||||||||||||
Mortgage servicing rights | $ | 3,001 | Discounted cash flow | Prepayment speed |
15-22%
|
22% | |||||||||||||||||||||||
Discount rate | 9.3% | ||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Residential land | $ | 25 | Fair value of collateral | Appraised value less selling cost | N/A (2) | N/A (2) | |||||||||||||||||||||||
Note 17 · Quarterly information (unaudited)
|
Quarters ended | Years ended | ||||||||||||||||||||||||||||
(in thousands, except per share amounts) | March 31 | June 30 | Sept. 30 | Dec. 31 | December 31 | ||||||||||||||||||||||||
HEI consolidated | |||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||
Revenues | $ | 677,186 | $ | 608,945 | $ | 641,427 | $ | 652,217 | $ | 2,579,775 | |||||||||||||||||||
Operating income | 59,702 | 71,556 | 99,561 | 80,674 | 311,493 | ||||||||||||||||||||||||
Net income | 33,893 | 49,360 | 65,503 | 50,958 | 199,714 | ||||||||||||||||||||||||
Net income for common stock | 33,420 | 48,887 | 65,032 | 50,485 | 197,824 | ||||||||||||||||||||||||
Basic earnings per common share 2
|
0.31 | 0.45 | 0.60 | 0.46 | 1.81 | ||||||||||||||||||||||||
Diluted earnings per common share 3
|
0.31 | 0.45 | 0.59 | 0.46 | 1.81 | ||||||||||||||||||||||||
Dividends per common share | 0.33 | 0.33 | 0.33 | 0.33 | 1.32 | ||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||
Revenues | $ | 661,615 | $ | 715,485 | $ | 770,882 | $ | 725,966 | $ | 2,873,948 | |||||||||||||||||||
Operating income1
|
77,937 | 72,634 | 96,655 | 100,795 | 348,021 | ||||||||||||||||||||||||
Net income1
|
46,161 | 42,985 | 63,890 | 66,736 | 219,772 | ||||||||||||||||||||||||
Net income for common stock1
|
45,688 | 42,512 | 63,419 | 66,263 | 217,882 | ||||||||||||||||||||||||
Basic earnings per common share 1,2
|
0.42 | 0.39 | 0.58 | 0.61 | 2.00 | ||||||||||||||||||||||||
Diluted earnings per common share 1,3
|
0.42 | 0.39 | 0.58 | 0.61 | 1.99 | ||||||||||||||||||||||||
Dividends per common share | 0.32 | 0.32 | 0.32 | 0.32 | 1.28 | ||||||||||||||||||||||||
Hawaiian Electric consolidated | |||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||
Revenues | $ | 597,442 | $ | 534,215 | $ | 562,568 | $ | 571,095 | $ | 2,265,320 | |||||||||||||||||||
Operating income | 43,958 | 67,801 | 88,518 | 68,273 | 268,550 | ||||||||||||||||||||||||
Net income | 24,404 | 42,828 | 60,563 | 43,540 | 171,335 | ||||||||||||||||||||||||
Net income for common stock | 23,905 | 42,329 | 60,065 | 43,041 | 169,340 | ||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||
Revenues | $ | 578,495 | $ | 633,784 | $ | 688,330 | $ | 645,333 | 2,545,942 | ||||||||||||||||||||
Operating income | 56,560 | 55,694 | 71,793 | 70,331 | 254,378 | ||||||||||||||||||||||||
Net income | 32,625 | 33,073 | 47,277 | 45,860 | 158,835 | ||||||||||||||||||||||||
Net income for common stock | 32,126 | 32,574 | 46,779 | 45,361 | 156,840 |
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
Plan category |
(a)
Number of securities to be issued upon exercise of outstanding options, warrants and rights (1) |
(b)
Weighted-average exercise price of outstanding options, warrants and rights |
(c)
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (2) |
||||||||||||||
Equity compensation plans approved by shareholders | 550,503 | $ | — | 2,707,642 | |||||||||||||
Equity compensation plans not approved by shareholders
|
— | — | — | ||||||||||||||
Total | 550,503 | $ | — | 2,707,642 |
EIP | |||||
133,943 | Restricted stock units plus estimated compounded dividend equivalents (if applicable)* | ||||
416,560 | Shares to be issued in February 2021, 2022 and 2023 under the 2018-2020, 2019-2021 and 2020-2022 LTIPs, respectively, plus compounded dividend equivalents** | ||||
550,503 |
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
Page/s in Form 10-K | ||||||||||||||
HEI | Hawaiian Electric | |||||||||||||
Schedule I |
Condensed Financial Information of Registrant, Hawaiian Electric Industries, Inc. (Parent Company) at December 31, 2020 and 2019 and for the years ended December 31, 2020, 2019 and 2018
|
NA | ||||||||||||
Schedule II |
Valuation and Qualifying Accounts, Hawaiian Electric Industries, Inc. and subsidiaries and Hawaiian Electric Company, Inc. and subsidiaries for the years ended December 31, 2020, 2019 and 2018
|
|||||||||||||
NA Not applicable. |
ITEM 16. | FORM 10-K SUMMARY |
December 31 | 2020 | 2019 | |||||||||
(dollars in thousands) | |||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 299 | $ | 953 | |||||||
Accounts receivable | 738 | 779 | |||||||||
Notes receivable from subsidiaries | — | 22,598 | |||||||||
Property, plant and equipment, net | 2,456 | 2,931 | |||||||||
Deferred income tax assets | 14,236 | 10,754 | |||||||||
Other assets and intercompany receivables | 18,726 | 21,770 | |||||||||
Investments in subsidiaries, at equity | 2,893,781 | 2,761,802 | |||||||||
Total assets | $ | 2,930,236 | $ | 2,821,587 | |||||||
Liabilities and shareholders’ equity | |||||||||||
Liabilities | |||||||||||
Accounts payable | $ | 673 | $ | 1,509 | |||||||
Interest payable | 2,918 | 3,041 | |||||||||
Commercial paper | 64,491 | 96,723 | |||||||||
Short-term debt, net | 14,909 | — | |||||||||
Long-term debt, net | 449,145 | 399,064 | |||||||||
Retirement benefits liability | 31,688 | 29,367 | |||||||||
Other | 28,910 | 11,623 | |||||||||
Total liabilities | 592,734 | 541,327 | |||||||||
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: 109,181,124 shares and 108,973,328 shares at December 31, 2020 and 2019, respectively
|
1,678,368 | 1,678,257 | |||||||||
Retained earnings | 660,398 | 622,042 | |||||||||
Accumulated other comprehensive loss, net of tax benefits | (1,264) | (20,039) | |||||||||
Total shareholders’ equity | 2,337,502 | 2,280,260 | |||||||||
Total liabilities and shareholders’ equity | $ | 2,930,236 | $ | 2,821,587 |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in thousands) | |||||||||||||||||
Revenues | $ | 208 | $ | 777 | $ | 429 | |||||||||||
Equity in net income of subsidiaries | 227,098 | 246,005 | 226,972 | ||||||||||||||
Expenses: | |||||||||||||||||
Operating, administrative and general | 20,731 | 19,195 | 19,515 | ||||||||||||||
Depreciation of property, plant and equipment | 485 | 570 | 597 | ||||||||||||||
Taxes, other than income taxes | 654 | 570 | 509 | ||||||||||||||
Total expenses | 21,870 | 20,335 | 20,621 | ||||||||||||||
Income before interest expense and income tax benefits | 205,436 | 226,447 | 206,780 | ||||||||||||||
Retirement defined benefits expense—other than service costs | 634 | 442 | 674 | ||||||||||||||
Interest expense | 18,237 | 17,930 | 12,664 | ||||||||||||||
Income before income tax benefits | 186,565 | 208,075 | 193,442 | ||||||||||||||
Income tax benefits | 11,259 | 9,807 | 8,332 | ||||||||||||||
Net income | $ | 197,824 | $ | 217,882 | $ | 201,774 |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in thousands) | |||||||||||||||||
Net cash provided by operating activities | $ | 134,363 | $ | 131,120 | $ | 135,470 | |||||||||||
Cash flows from investing activities | |||||||||||||||||
Increase in note receivable from subsidiary | — | (1,187) | (20,596) | ||||||||||||||
Decrease in note receivable from subsidiary | 22,719 | — | — | ||||||||||||||
Capital expenditures | (20) | (47) | (143) | ||||||||||||||
Investments in subsidiaries | (42,664) | (38,935) | (71,970) | ||||||||||||||
Other | 2,435 | (1,001) | 140 | ||||||||||||||
Net cash used in investing activities | (17,530) | (41,170) | (92,569) | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||
Net decrease in notes payable to subsidiaries with original maturities of three months or less | — | — | (30) | ||||||||||||||
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (32,232) | 47,731 | (14,000) | ||||||||||||||
Proceeds from issuance of short-term debt | 65,000 | — | — | ||||||||||||||
Repayment of short-term debt | (50,000) | — | (50,000) | ||||||||||||||
Proceeds from issuance of long-term debt | 50,000 | — | 150,000 | ||||||||||||||
Proceeds from issuance of syndicated credit facility | 66,300 | — | — | ||||||||||||||
Repayment of syndicated credit facility | (66,300) | — | — | ||||||||||||||
Withheld shares for employee taxes on vested share-based compensation | (5,700) | (997) | (996) | ||||||||||||||
Common stock dividends | (144,096) | (139,463) | (134,987) | ||||||||||||||
Other | (459) | (10) | (848) | ||||||||||||||
Net cash used in financing activities | (117,487) | (92,739) | (50,861) | ||||||||||||||
Net decrease in cash and equivalents | (654) | (2,789) | (7,960) | ||||||||||||||
Cash and cash equivalents, January 1 | 953 | 3,742 | 11,702 | ||||||||||||||
Cash and cash equivalents, December 31 | $ | 299 | $ | 953 | $ | 3,742 |
December 31 | 2020 | 2019 | |||||||||
(dollars in thousands) | |||||||||||
HEI 2.99% term loan, due 2022
|
$ | 150,000 | $ | 150,000 | |||||||
HEI 5.67% senior note, due 2021
|
50,000 | 50,000 | |||||||||
HEI 3.99% senior note, due 2023
|
50,000 | 50,000 | |||||||||
HEI 4.58% senior notes, due 2025
|
50,000 | 50,000 | |||||||||
HEI 4.72% senior notes, due 2028
|
100,000 | 100,000 | |||||||||
HEI 2.98% senior notes, due 2030
|
50,000 | — | |||||||||
Less unamortized debt issuance costs | (855) | (936) | |||||||||
Long-term debt, net | $ | 449,145 | $ | 399,064 |
Col. A | Col. B | Col. C | Col. D | Col. E | |||||||||||||||||||||||||||||||
(in thousands) | Additions | ||||||||||||||||||||||||||||||||||
Description |
Balance
at begin- ning of period |
Charged to
costs and expenses |
Charged
to other accounts |
Deductions |
Balance at
end of period |
||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||
Allowance for uncollectible accounts – electric utility | $ | 1,377 | $ | 2,100 | $ | 18,041 | (a),(b) | $ | 3,709 | (c) | $ | 17,809 | |||||||||||||||||||||||
Allowance for credit losses for loans – bank | $ | 72,796 | (d) | $ | 49,811 | (e) | $ | 4,748 | (b) | $ | 26,154 | (c) | $ | 101,201 | |||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||||||
Allowance for uncollectible accounts – electric utility | $ | 1,480 | $ | 2,106 | $ | 795 | (b), (f) | $ | 3,004 | (c),(f) | $ | 1,377 | |||||||||||||||||||||||
Allowance for credit losses for loans – bank | $ | 52,119 | $ | 23,480 | (e) | $ | 6,418 | (b) | $ | 28,662 | (c) | $ | 53,355 | ||||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||||||||
Allowance for uncollectible accounts – electric utility | $ | 1,178 | $ | 2,474 | $ | (4,099) | (b) | $ | (1,927) | (c),(f) | $ | 1,480 | |||||||||||||||||||||||
Allowance for credit losses for loans – bank | $ | 53,637 | $ | 14,745 | (e) | $ | 4,254 | (b) | $ | 20,517 | (c) | $ | 52,119 | ||||||||||||||||||||||
Deferred tax valuation allowance – HEI | $ | 38 | $ | — | $ | — | $ | 38 | $ | — |
Exhibit no. | Description | Form | File Number | Exhibit # | Filing date | |||||||||||||||
HEI: | ||||||||||||||||||||
3(i) | 10-Q | 1-8503 | 3.1 | 8/6/20 | ||||||||||||||||
3(ii) | 8-K | 1-8503 | 3.1 | 6/8/20 | ||||||||||||||||
4 | 10-K | 1-8503 | 4 | 2/28/20 | ||||||||||||||||
4.1 | Agreement to provide the SEC with instruments which define the rights of holders of certain long-term debt of HEI and its subsidiaries. | 10-K | 1-8503 | 4.1 | 3/31/93 | |||||||||||||||
4.2 | 8-K | 1-8503 | 4(a) | 3/28/11 | ||||||||||||||||
4.2(a) | 8-K | 1-8503 | 4(a) | 3/6/13 | ||||||||||||||||
4.3 | 10-K | 1-8503 | 4.5 | 2/19/13 | ||||||||||||||||
4.3(a) | S-8 |
333-
232360 |
4.4 | 6/26/19 | ||||||||||||||||
4.3(b) | S-8 |
333-
232360 |
4.5 | 6/26/19 | ||||||||||||||||
4.3(c) | S-8 |
333-
232360 |
4.6 | 6/26/19 | ||||||||||||||||
4.3(d) | S-8 |
333-
232360 |
4.7 | 6/26/19 | ||||||||||||||||
4.3(e) | 10-Q | 1-8503 | 4.2 | 11/1/19 | ||||||||||||||||
4.3(f) | 10-Q | 1-8503 | 4.1 | 5/5/20 | ||||||||||||||||
4.4 | 10-Q | 1-8503 | 4 | 11/8/12 | ||||||||||||||||
4.4(a) | 10-K | 1-8503 | 4.6(a) | 2/19/13 | ||||||||||||||||
4.4(b) | 10-Q | 1-8503 | 4 | 11/6/14 | ||||||||||||||||
4.4(c) | 10-Q | 1-8503 | 4 | 5/6/15 | ||||||||||||||||
4.4(d) | 10-K | 1-8503 | 4.4(d) | 3/1/18 | ||||||||||||||||
4.4(e) | 10-Q | 1-8503 | 4 | 11/2/17 | ||||||||||||||||
4.4(f) | 10-K | 1-8503 | 4.4(f) | 3/1/18 | ||||||||||||||||
4.4(g) | 10-K | 1-8503 | 4.4(g) | 3/1/18 |
Exhibit no. | Description | Form | File Number | Exhibit # | Filing date | |||||||||||||||
* | 101.INS | XBRL Instance Document. | ||||||||||||||||||
* | 101.SCH | XBRL Taxonomy Extension Schema Document. | ||||||||||||||||||
* | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | ||||||||||||||||||
* | 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | ||||||||||||||||||
* | 101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | ||||||||||||||||||
* | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | ||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||||||||||||||
Hawaiian Electric: | ||||||||||||||||||||
3(i).1 | Hawaiian Electric’s Certificate of Amendment of Articles of Incorporation. | 10-K | 1-4955 | 3.1 | 3/31/89 | |||||||||||||||
3(i).2 | Articles of Amendment to Hawaiian Electric’s Amended Articles of Incorporation. | 10-K | 1-4955 | 3.1(b) | 3/27/90** | |||||||||||||||
3(i).3 | Articles of Amendment to Hawaiian Electric’s Amended Articles of Incorporation. | 10-K | 1-4955 | 3(i).4 | 3/23/99 | |||||||||||||||
3(i).4 | 10-Q | 1-4955 | 3(i).4 | 8/7/09 | ||||||||||||||||
3(ii) | 8-K | 1-4955 | 3(ii) | 8/9/10 | ||||||||||||||||
4 | 10-K | 1-4955 | 4 | 2/28/20 | ||||||||||||||||
4.1 | 10-K | 1-4955 | 4.1 | 3/19/03 | ||||||||||||||||
4.2 | 8-K | 1-4955 | 4(a) | 4/23/12 | ||||||||||||||||
4.3 | 8-K | 1-4955 | 4(b) | 4/23/12 | ||||||||||||||||
4.4 | 8-K | 1-4955 | 4(c) | 4/23/12 | ||||||||||||||||
4.5 | 8-K | 1-4955 | 4 | 9/14/12 | ||||||||||||||||
4.6 |
8-K
|
1-4955
|
4(a)
|
10/7/13
|
||||||||||||||||
4.7 | 8-K | 1-4955 | 4(b) | 10/7/13 | ||||||||||||||||
4.8 | 10-Q | 1-4955 | 4 | 11/7/13 | ||||||||||||||||
4.9 | 8-K | 1-4955 | 4(a) | 10/16/15 | ||||||||||||||||
4.10 | 8-K | 1-4955 | 4(b) | 10/16/15 | ||||||||||||||||
4.11 | 8-K | 1-4955 | 4(c) | 10/16/15 | ||||||||||||||||
4.12 | 8-K | 1-4955 | 4 | 12/19/16 | ||||||||||||||||
10.1(a) | Power Purchase Agreement between Kalaeloa Partners, L.P., and Hawaiian Electric dated October 14, 1988. | 10-Q | 1-4955 | 10(a) | 11/14/88 | |||||||||||||||
10.1(b) | Amendment No. 1 to Power Purchase Agreement between Hawaiian Electric and Kalaeloa Partners, L.P., dated June 15, 1989. | 10-Q | 1-4955 | 10(c) | 8/14/89 | |||||||||||||||
10.1(c) | Lease Agreement between Kalaeloa Partners, L.P., as Lessor, and Hawaiian Electric, as Lessee, dated February 27, 1989. | 10-Q | 1-4955 | 10(d) | 8/14/89 | |||||||||||||||
10.1(d) | Restated and Amended Amendment No. 2 to Power Purchase Agreement between Hawaiian Electric and Kalaeloa Partners, L.P., dated February 9, 1990. | 10-K | 1-4955 | 10.2(c) | 3/27/90** |
Exhibit no. | Description | Form | File Number | Exhibit # | Filing date | |||||||||||||||
10.1(e) | Amendment No. 3 to Power Purchase Agreement between Hawaiian Electric and Kalaeloa Partners, L.P., dated December 10, 1991. | 10-K | 1-4955 | 10.2(e) | 3/24/92 | |||||||||||||||
10.1(f) | 10-Q | 1-4955 | 10.1 | 11/8/00 | ||||||||||||||||
10.1(g) | 10-Q | 1-4955 | 10.3 | 11/5/04 | ||||||||||||||||
10.1(h) | 10-Q | 1-4955 | 10.4 | 11/5/04 | ||||||||||||||||
10.1(i) | 10-Q | 1-4955 | 10 | 11/4/16 | ||||||||||||||||
10.2(a) | Power Purchase Agreement between AES Barbers Point, Inc. and Hawaiian Electric, entered into on March 25, 1988. | 10-Q | 1-4955 | 10(a) | 5/16/88 | |||||||||||||||
10.2(b) | Agreement between Hawaiian Electric and AES Barbers Point, Inc., pursuant to letters dated May 10, 1988 and April 20, 1988. | 10-K | 1-4955 | 10.4 | 3/31/89 | |||||||||||||||
10.2(c) | Amendment No. 1, entered into as of August 28, 1988, to Power Purchase Agreement between AES Barbers Point, Inc. and Hawaiian Electric. | 10-Q | 1-4955 | 10 | 11/13/89 | |||||||||||||||
10.2(d) | Hawaiian Electric’s Conditional Notice of Acceptance to AES Barbers Point, Inc. dated January 15, 1990. | 10-K | 1-4955 | 13(c) | 3/27/90** | |||||||||||||||
10.2(e) | 10-K | 1-4955 | 10.2(e) | 3/9/04 | ||||||||||||||||
10.2(f) | 10-Q | 1-4955 | 10 | 5/10/18 | ||||||||||||||||
10.3(a) | Purchase Power Contract between Hawaii Electric Light and Thermal Power Company dated March 24, 1986. | 10-Q | 1-4955 | 10(a) | 8/14/89 | |||||||||||||||
10.3(b) | Firm Capacity Amendment between Hawaii Electric Light and Puna Geothermal Venture (assignee of AMOR VIII, who is the assignee of Thermal Power Company) dated July 28, 1989 to Purchase Power Contract between Hawaii Electric Light and Thermal Power Company dated March 24, 1986. | 10-Q | 1-4955 | 10(b) | 8/14/89 | |||||||||||||||
10.3(c) | Amendment made in October 1993 to Purchase Power Contract between Hawaii Electric Light and Puna Geothermal Venture dated March 24, 1986, as amended. | 10-K | 1-4955 | 10.5(b) | 3/27/98 | |||||||||||||||
10.3(d) | Third Amendment dated March 7, 1995 to the Purchase Power Contract between Hawaii Electric Light and Puna Geothermal Venture dated March 24, 1986, as amended. | 10-K | 1-4955 | 10.5(c) | 3/27/98 | |||||||||||||||
10.3(e) | Performance Agreement and Fourth Amendment dated February 12, 1996 to the Purchase Power Contract between Hawaii Electric Light and Puna Geothermal Venture dated March 24, 1986, as amended. | 10-K | 1-4955 | 10.5(b) | 3/25/96 | |||||||||||||||
10.3(f) | 10-K | 1-4955 | 10.4(f) | 2/17/12 | ||||||||||||||||
10.3(g) | 10-K | 1-4955 | 10.4(g) | 2/17/12 | ||||||||||||||||
10.3(h) | 10-K | 1-4955 | 10.3(h) | 2/28/20 | ||||||||||||||||
10.4(a) | Power Purchase Agreement between Encogen Hawaii, L.P. and Hawaii Electric Light dated October 22, 1997 (but with the following attachments omitted: Attachment C, “Selected portions of the North American Electric Reliability Council Generating Availability Data System Data Reporting Instructions dated October 1996” and Attachment E, “Form of the Interconnection Agreement between Encogen Hawaii, L.P. and Hawaii Electric Light,” which is provided in final form as Exhibit 10.6(b)). | 10-K | 1-4955 | 10.7 | 3/27/98 | |||||||||||||||
10.4(b) | Interconnection Agreement between Encogen Hawaii, L.P. and Hawaii Electric Light dated October 22, 1997. | 10-K | 1-4955 | 10.7(a) | 3/27/98 | |||||||||||||||
10.4(c) | Amendment No. 1, executed on January 14, 1999, to Power Purchase Agreement between Encogen Hawaii, L.P. and Hawaii Electric Light dated October 22, 1997. | 10-K | 1-4955 | 10.7(b) | 3/23/99 |
Exhibit no. | Description | Form | File Number | Exhibit # | Filing date | |||||||||||||||
10.4(d) | 10-K | 1-4955 | 10.4(d) | 3/1/18 | ||||||||||||||||
10.5 | 10-Q | 1-4955 | 10 | 5/7/19 | ||||||||||||||||
10.5(a) |
First Amendment dated June 9, 2020 to Supply Contract for Low Sulfur Fuel Oil, High Sulfur Fuel Oil, No. 2 Diesel, and Ultra-Low Sulfur Diesel by and between Hawaiian Electric, Hawaii Electric Light, and Maui Electric and PAR Hawaii Refining, LLC dated January 21, 2019 (certain confidential information has been omitted).
|
10-Q | 1-4955 | 10 | 8/6/20 | |||||||||||||||
10.6(a) | 10-K | 1-4955 | 10.13 | 3/23/01 | ||||||||||||||||
10.6(b) | 10-K | 1-4955 | 10.13(b) | 2/19/13 | ||||||||||||||||
10.7(a) | 10-K | 1-4955 | 10.14 | 3/23/01 | ||||||||||||||||
10.7(b) | 10-K | 1-4955 | 10.14(b) | 2/19/13 | ||||||||||||||||
10.8 | 10-K | 1-4955 | 10.11(a) | 3/1/18 | ||||||||||||||||
10.9 | 10-Q | 1-4955 | 10.2 | 8/3/17 | ||||||||||||||||
11 | Computation of Earnings Per Share of Common Stock (See note on Hawaiian Electric’s Item 6. Selected Financial Data). | |||||||||||||||||||
* | 21.2 | |||||||||||||||||||
* | 31.3 | |||||||||||||||||||
* | 31.4 | |||||||||||||||||||
* | 32.2 | |||||||||||||||||||
* | 99.1 |
HAWAIIAN ELECTRIC INDUSTRIES, INC. | HAWAIIAN ELECTRIC COMPANY, INC. | |||||||||||||||||||
(Registrant) | (Registrant) | |||||||||||||||||||
By | /s/ Gregory C. Hazelton | By | /s/ Tayne S. Y. Sekimura | |||||||||||||||||
Gregory C. Hazelton | Tayne S. Y. Sekimura | |||||||||||||||||||
Executive Vice President and Chief Financial Officer | Senior Vice President and Chief Financial Officer | |||||||||||||||||||
(Principal Financial Officer of HEI) | (Principal Financial Officer of Hawaiian Electric) | |||||||||||||||||||
Date: | February 26, 2021 | Date: | February 26, 2021 |
Signature | Title | |||||||
/s/ Constance H. Lau | President & Chief Executive Officer of HEI and | |||||||
Constance H. Lau | Director of HEI | |||||||
(Principal Executive Officer of HEI) | ||||||||
/s/ Scott W. H. Seu | President & Chief Executive Officer of Hawaiian Electric | |||||||
Scott W. H. Seu | and Director of Hawaiian Electric | |||||||
(Principal Executive Officer of Hawaiian Electric) | ||||||||
/s/ Gregory C. Hazelton | Executive Vice President and Chief Financial Officer | |||||||
Gregory C. Hazelton | of HEI (Principal Financial Officer of HEI) | |||||||
/s/ Tayne S. Y. Sekimura | Senior Vice President and Chief Financial Officer | |||||||
Tayne S. Y. Sekimura | of Hawaiian Electric (Principal Financial Officer | |||||||
of Hawaiian Electric) | ||||||||
/s/ Paul K. Ito | Vice President, Tax, Controller and Treasurer | |||||||
Paul K. Ito | of HEI (Principal Accounting Officer of HEI) | |||||||
/s/ Patsy H. Nanbu | Controller of Hawaiian Electric | |||||||
Patsy H. Nanbu | (Principal Accounting Officer of Hawaiian Electric) | |||||||
/s/ James A. Ajello | Director of Hawaiian Electric | |||||||
James A. Ajello |
Signature | Title | |||||||
/s/ Kevin M. Burke | Director of Hawaiian Electric | |||||||
Kevin M. Burke | ||||||||
/s/ Celeste A. Connors | Director of HEI | |||||||
Celeste A. Connors | ||||||||
/s/ Richard J. Dahl | Director of HEI | |||||||
Richard J. Dahl | ||||||||
/s/ Thomas B. Fargo | Chairman of the Board of Directors of HEI | |||||||
Thomas B. Fargo | ||||||||
/s/ Peggy Y. Fowler | Director of HEI | |||||||
Peggy Y. Fowler | ||||||||
/s/ Timothy E. Johns | Chairman of the Board of Directors of Hawaiian Electric | |||||||
Timothy E. Johns | ||||||||
/s/ Micah A. Kane | Director of HEI | |||||||
Micah A. Kane | ||||||||
/s/ Alana Kobayashi Pakkala | Director of Hawaiian Electric | |||||||
Alana Kobayashi Pakkala | ||||||||
/s/ Mary G. Powell | Director of HEI | |||||||
Mary G. Powell | ||||||||
/s/ Keith P. Russell | Director of HEI | |||||||
Keith P. Russell | ||||||||
/s/ William James Scilacci, Jr. | Director of HEI | |||||||
William James Scilacci, Jr. | ||||||||
/s/ Kelvin H. Taketa | Director of Hawaiian Electric | |||||||
Kelvin H. Taketa | ||||||||
/s/ Eva T. Zlotnicka | Director of HEI | |||||||
Eva T. Zlotnicka |
(in thousands,
except per share amounts) |
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
Net income for common stock | $ | 197,824 | $ | 217,882 | $ | 201,774 | $ | 165,297 | $ | 248,256 | ||||||||||||||||||||||
Weighted-average number of common shares outstanding | 109,140 | 108,949 | 108,855 | 108,749 | 108,102 | |||||||||||||||||||||||||||
Adjusted weighted-average number of common shares outstanding | 109,356 | 109,407 | 109,146 | 108,933 | 108,309 | |||||||||||||||||||||||||||
Basic earnings per common share | $ | 1.81 | $ | 2.00 | $ | 1.85 | $ | 1.52 | $ | 2.30 | ||||||||||||||||||||||
Diluted earnings per common share | $ | 1.81 | $ | 1.99 | $ | 1.85 | $ | 1.52 | $ | 2.29 |
Date: February 26, 2021 | |||||
/s/ Constance H. Lau | |||||
Constance H. Lau | |||||
President and Chief Executive Officer |
Date: February 26, 2021 | |||||
/s/ Gregory C. Hazelton | |||||
Gregory C. Hazelton | |||||
Executive Vice President and Chief Financial Officer |
Date: February 26, 2021 | |||||
/s/ Scott W. H. Seu | |||||
Scott W. H. Seu | |||||
President and Chief Executive Officer |
Date: February 26, 2021 | |||||
/s/ Tayne S. Y. Sekimura | |||||
Tayne S. Y. Sekimura | |||||
Senior Vice President and Chief Financial Officer |
Date: February 26, 2021 | ||
/s/ Constance H. Lau | ||
Constance H. Lau | ||
President and Chief Executive Officer | ||
/s/ Gregory C. Hazelton | ||
Gregory C. Hazelton | ||
Executive Vice President and Chief Financial Officer |
Date: February 26, 2021 | ||
/s/ Scott W. H. Seu | ||
Scott W. H. Seu | ||
President and Chief Executive Officer | ||
/s/ Tayne S. Y. Sekimura | ||
Tayne S. Y. Sekimura | ||
Senior Vice President and Chief Financial Officer |
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
Name | Age |
Business experience for last 5 years and prior positions
with Hawaiian Electric and its affiliates |
||||||
Scott W. H. Seu1
|
55 |
Hawaiian Electric President and Chief Executive Officer since 2/20
Hawaiian Electric Director since 2/20 · Hawaiian Electric Senior Vice President, Public Affairs, 1/17-2/20 · Hawaiian Electric Vice President, System Operation, 5/14 to 1/17 · Hawaiian Electric Vice President, Energy Resources and Operations, 1/13 to 5/14 · Hawaiian Electric Vice President, Energy Resources, 8/10 to 12/12 · Hawaiian Electric Manager, Resource Acquisition Department, 3/09 to 8/10 · Hawaiian Electric Manager, Energy Projects Department, 5/04 to 3/09 · Hawaiian Electric Manager, Customer Installations Department, 1/03 to 5/04 · Hawaiian Electric Manager, Environmental Department, 4/98 to 12/02 · Hawaiian Electric Principal Environmental Scientist, 1/97 to 4/98 · Hawaiian Electric Senior Environmental Scientist, 5/96 to 12/96 · Hawaiian Electric Environmental Scientist, 8/93 to 5/96 |
||||||
Jimmy D. Alberts2
|
60 |
Hawaiian Electric Senior Vice President, Business Development & Strategic Planning since 2/19
· Hawaiian Electric Senior Vice President, Customer Service, 8/12 to 2/19
· Prior to joining the Company: Kansas City Power & Light, Vice President – Customer Service, 2007-12
|
||||||
Colton K. Ching | 53 |
Hawaiian Electric Senior Vice President, Planning & Technology since 1/17
· Hawaiian Electric Vice President, Energy Delivery, 1/13 to 1/17 · Hawaiian Electric Vice President, Systems Operation & Planning, 8/10 to 12/12 · Hawaiian Electric Manager, Corporate Planning Department, 8/08 to 8/10 · Hawaiian Electric Director, Strategic Initiatives, 12/06 to 8/08 · Hawaiian Electric Director, Transmission Planning Division, 2/05 to 12/06 · Hawaiian Electric Senior Planning Engineer, 4/00 to 2/05 · Hawaiian Electric Electric Engineer II, 9/96 to 4/00 · Hawaiian Electric Designer II, 1/94 to 9/96 · Hawaiian Electric Designer I, 1/91 to 1/94 |
||||||
Ronald R. Cox3
|
64 |
Hawaiian Electric Senior Vice President, Operations since 1/17
· Hawaiian Electric Vice President, Power Supply, 8/11 to 1/17 · Hawaiian Electric Vice President, Generation & Fuels, 8/10 to 7/11 · Hawaiian Electric Manager, Energy Solutions, 3/09 to 8/10 · Hawaiian Electric Manager, Power Supply Services Department, 1/07 to 3/09 · Hawaiian Electric Manager, Operations Strategic Planning, 11/05 to 1/07 |
||||||
Shelee M. T. Kimura4
|
47 |
Hawaiian Electric Senior Vice President, Customer Service since 2/19
· Hawaiian Electric Senior Vice President, Business Development & Strategic Planning, 1/17 to 2/19
· Hawaiian Electric Vice President, Corporate Planning & Business Development, 5/14 to 1/17
· HEI Manager, Investor Relations & Strategic Planning, 11/09 to 5/14
· HEI Director, Corporate Finance and Investments, 8/04 to 10/09
|
Name | Age |
Business experience for last 5 years and prior positions
with Hawaiian Electric and its affiliates |
||||||
Tayne S. Y. Sekimura | 58 |
Hawaiian Electric Senior Vice President and Chief Financial Officer since 9/09
· Hawaiian Electric Senior Vice President, Finance and Administration, 2/08 to 9/09 · Hawaiian Electric Financial Vice President, 10/04 to 2/08 · Hawaiian Electric Assistant Financial Vice President, 8/04 to 10/04 · Hawaiian Electric Director, Corporate & Property Accounting, 2/01 to 8/04 · Hawaiian Electric Director, Internal Audit, 7/97 to 2/01 · Hawaiian Electric Capital Budgets Administrator, 5/93 to 7/97 · Hawaiian Electric Capital Budgets Supervisor, 10/92 to 5/93 · Hawaiian Electric Auditor (internal), 5/91 to 10/92 |
||||||
Sharon M. Suzuki5
|
62 |
President, Maui County and Hawaii Island Utilities since 2/19
· Maui Electric President, 5/12 to 2/19 · Maui Electric CIS Project Resource Manager, 8/11 to 5/12 · Maui Electric Manager, Renewable Energy Services, 3/08 to 5/12 · Maui Electric Manager, Customer Service, 5/04 to 3/08 · Hawaiian Electric Director, Customer Account Services, 8/02 to 5/04 · Hawaiian Electric Residential Energy Efficiency Program Manager, 5/00 to 8/02 · Hawaiian Electric Commercial and Industrial Energy Efficiency Program Manager, 6/96 to 5/00 · Hawaiian Electric Demand-Side Management Analyst, 7/92 to 6/96 |
ITEM 11.
|
EXECUTIVE COMPENSATION
|
2020 | |||||
Hawaiian Electric Director | $ | 45,000 | |||
Hawaiian Electric Chairman of the Board | 45,000 | ||||
Hawaiian Electric Audit & Risk Committee Chair | 15,000 | ||||
Hawaiian Electric Audit & Risk Committee Member | 7,500 | ||||
Hawaiian Electric Non-Voting Representative to HEI Compensation Committee | 10,000 | ||||
Hawaiian Electric Non-Voting Representative to HEI Nominating and Corporate Governance Committee | 10,000 |
Name |
Fees Earned or
Paid in Cash ($) (1) |
Stock
Awards ($) (2) |
Total
($) |
||||||||||||||
James A. Ajello3
|
34,471 | 55,000 | 89,471 | ||||||||||||||
Kevin M. Burke | 53,500 | 55,000 | 108,500 | ||||||||||||||
Timothy E. Johns, Chairman | 120,603 | 55,000 | 175,603 | ||||||||||||||
Bert A. Kobayashi, Jr.4
|
19,038 | — | 19,038 | ||||||||||||||
Alana K. Pakkala5
|
26,085 | 55,000 | 81,085 | ||||||||||||||
Kelvin H. Taketa | 45,000 | 55,000 | 100,000 |
Name | Hawaiian Electric Board ($) (1) | Hawaiian Electric Chairman ($) |
Hawaiian Electric Audit
Committee ($) |
Hawaiian Electric Nonvoting Representative to HEI Compensation Committee ($) | Hawaiian Electric Nonvoting Representative to HEI Nominating and Corporate Governance Committee ($) |
Extra Meeting Fees
($) (2) |
Total Fees Earned
or Paid in Cash ($) |
||||||||||||||||||||||||||||||||||
James A. Ajello3
|
29,547 | — | 4,924 | — | — | — | 34,471 | ||||||||||||||||||||||||||||||||||
Kevin M. Burke | 45,000 | — | 7,500 | — | — | 1,000 | 53,500 | ||||||||||||||||||||||||||||||||||
Timothy E. Johns | 45,000 | 45,000 | 15,000 | 1,603 | 10,000 | 4,000 | 120,603 | ||||||||||||||||||||||||||||||||||
Bert A. Kobayashi, Jr.4
|
15,577 | — | — | 3,461 | — | — | 19,038 | ||||||||||||||||||||||||||||||||||
Alana K. Pakkala5
|
26,085 | — | — | — | — | — | 26,085 | ||||||||||||||||||||||||||||||||||
Kelvin H. Taketa6
|
45,000 | — | — | — | — | — | 45,000 |
Name | Title | ||||
Scott W. H. Seu | Hawaiian Electric President and Chief Executive Officer (CEO) | ||||
Tayne S. Y. Sekimura | Hawaiian Electric Senior Vice President and Chief Financial Officer | ||||
Jimmy D. Alberts | Hawaiian Electric Senior Vice President, Business Development & Strategic Planning | ||||
Colton K. Ching | Hawaiian Electric Senior Vice President, Planning & Technology | ||||
Ronald R. Cox | Hawaiian Electric Senior Vice President, Operations | ||||
Alan M. Oshima* | Former Hawaiian Electric President and Chief Executive Officer (CEO) | ||||
Hawaiian Electric 2020 Peer Group (applies to all Hawaiian Electric named executive officers) | ||||||||
Selection Criteria
|
· Electric utilities with primarily regulated operations
· Revenue balanced in a range of approximately 0.5x to 2x Hawaiian Electric’s revenue
· Market cap and location as secondary considerations
|
|||||||
Peer Group for 2020 Compensation |
ALLETE
Alliant Energy
Avista
Black Hills
IDACORP
MDU Resources
NiSource
|
Northwestern Corp
OGE Energy Pinnacle West PNM Resources Portland General |
||||||
Position | Value of Stock to be Owned | ||||
Hawaiian Electric President & CEO
|
2x base salary
|
||||
Other Named Executive Officers
|
1x base salary
|
Compensation element | Summary | Objectives | ||||||
Base Salary | Fixed level of cash compensation set in reference to peer group median (may vary based on performance, experience, responsibilities, expertise and other factors). |
Attract and retain talented executives by providing competitive fixed cash compensation.
|
||||||
Annual Performance-Based Incentives | Variable cash award based on achievement of pre-set performance goals for the year. Award opportunity is determined as a percentage of base salary. Performance below threshold levels yields no incentive payment. | Drive achievement of key business results linked to short-term and long-term strategy and reward executives for their contributions to such results. Balance compensation cost and return by paying awards based on performance. | ||||||
Long-Term Performance-Based Incentives | Variable equity award based on meeting pre-set performance objectives over a 3-year period. Award opportunity is determined as a percentage of base salary. Performance below threshold levels yields no incentive payment. |
Motivate executives and align their interests with those of all stakeholders by promoting long-term value growth and by paying awards in the form of equity.
Balance compensation cost and return by paying awards based on performance. |
||||||
Annual Restricted Stock Unit (RSU) Grant |
Annual equity grants in the form of RSUs that vest in equal installments over 4 years. Amount of grant is determined as a percentage of base salary.
|
Promote alignment of executive and shareholder interests by ensuring executives have significant ownership of HEI Common Stock.
Retain talented leaders through multi-year vesting. |
||||||
Benefits | Includes defined benefit pension plans and retirement savings plan, deferred compensation plans, minimal perquisites and an executive death benefit plan (frozen since 2009). | Enhance total compensation with meaningful and competitive benefits that promote retention and peace of mind and contribute to financial security. |
Base Salary1
($)
|
Performance-Based Annual Incentive
(Target Opportunity2 as % of Base Salary)
|
Performance-Based Long-term Incentive
(Target Opportunity2 as % of Base Salary)
|
Restricted Stock Units (Grant Value as % of Base Salary) | ||||||||||||||||||||||||||||||||
Name | 2019 | 2020 | 2019 | 2020 | 2019-21 | 2020-22 | 2019 | 2020 | |||||||||||||||||||||||||||
Scott W. H. Seu | 274,583 | 419,750 | 45 | 75 | 45 | 80 | 35 |
753
|
|||||||||||||||||||||||||||
Tayne S. Y. Sekimura | 371,983 | 383,133 | 50 | same | 50 | same | 35 | same | |||||||||||||||||||||||||||
Jimmy D. Alberts | 285,617 | 294,167 | 45 | same | 45 | same | 35 | same | |||||||||||||||||||||||||||
Colton K. Ching | 274,467 | 282,717 | 45 | same | 45 | same | 35 | same | |||||||||||||||||||||||||||
Ronald R. Cox | 285,517 | 294,167 | 45 | same | 45 | same | 35 | same | |||||||||||||||||||||||||||
Alan M. Oshima | 707,350 |
399,8254
|
75 | N/A | 95 | N/A | 65 | N/A | |||||||||||||||||||||||||||
2020 Annual Incentive Performance Metrics & Why We Use Them |
Weight-
ing |
Goals | |||||||||||||||||||||
Threshold | Target | Maximum | Result | ||||||||||||||||||||
Consolidated Net Income1 focuses on fundamental earnings
|
30% | $156.6M | $164.8M | $173.0M | $169.3M | ||||||||||||||||||
Consolidated Operation and Maintenance Expense2 measures operational efficiency
|
15% | $430.4M | $422.0M | $413.6M | $413.9M | ||||||||||||||||||
Consolidated Customer Satisfaction3 focuses on improving the customer experience through all points of contact with the utility
|
15% | Consolidated score of 73 in 2 of 4 quarters | Consolidated score of 73 in 3 of 4 quarters | Consolidated score of 73 in 4 of 4 quarters | Consolidated score of 73 in 4 of 4 quarters | ||||||||||||||||||
Consolidated Reliability/System Average Interruption Duration Index (SAIDI)4 promotes system reliability for customers
|
5% | 129.20 minutes | 112.54 minutes | 95.88 minutes | 97.89 minutes | ||||||||||||||||||
Consolidated Safety: Severity Rate and Total Cases Incident Rate (TCIR)5 rewards improvements in workplace safety, promoting employee well-being and reducing expense
|
5% | 18.53 | 16.00 | 13.46 | 26.55 | ||||||||||||||||||
1.37 TCIR | 1.37 TCIR | 1.37 TCIR | 1.34 TCIR | ||||||||||||||||||||
Resilience, Reliability and Climate Change6 promotes achievement of utility transformation initiatives
|
10% | Threshold | Target | Maximum | Below Threshold | ||||||||||||||||||
Grid Modernization7 promotes Hawaii meeting its energy policy goals by creating a modernized grid that assures a continued safe, reliable and resilient utility network
|
10% | Threshold | Target | Maximum | Threshold | ||||||||||||||||||
Leadership and Workforce Development8 promotes development of an effective workforce that is aligned with Company objectives and has clear pathways to career development
|
10% | Threshold | Target | Maximum | Threshold |
Name | 2020 Annual Incentive Payout | ||||
Scott W. H. Seu | $ | 394,587 | |||
Tayne S. Y. Sekimura | 240,031 | ||||
Jimmy D. Alberts | 165,911 | ||||
Colton K. Ching | 159,452 | ||||
Ronald R. Cox | 165,911 | ||||
2020-22 Long-Term Incentive | Goals | |||||||||||||
Performance Metrics & Why We Use Them | Weighting | Threshold | Target | Maximum | ||||||||||
Hawaiian Electric 3-year Average Annual Net Income Growth1 promotes shareholder value by focusing on net income growth based on the years included in the plan.
|
30% | 4.5% | 5.5% | 7.0% | ||||||||||
3-year ROACE as a % of Allowed Return2 measures Hawaiian Electric’s performance in attaining the level of ROACE it is permitted to earn by its regulator. The focus on ROACE encourages improved return compared to the cost of capital.
|
30% | 83% | 85% | 88% | ||||||||||
Renewable Portfolio Standards3 measures Hawaiian Electric's progress towards meeting the State of Hawaii's RPS targets for increased production of energy from renewable energy sources.
|
20% | 32% | 40% | 50% | ||||||||||
HEI Relative TSR4 compares the value created for HEI shareholders to that created by other investor-owned electric companies (EEI Index).
|
20% |
30th
percentile |
50th
percentile |
70th
percentile |
Name |
2018-20 Target Opportunity*
(as % of Base Salary)
|
||||
Scott W. H. Seu | 30% | ||||
Tayne S. Y. Sekimura | 50% | ||||
Jimmy D. Alberts | 45% | ||||
Colton K. Ching | 30% | ||||
Ronald R. Cox | 30% | ||||
Alan M. Oshima | 95% | ||||
2018-20 Long-Term Incentive |
Goals
|
||||||||||||||||
Performance Metrics & Why We Use Them
|
Weighting
|
Threshold
|
Target
|
Maximum
|
Result
|
||||||||||||
Hawaiian Electric Average Annual EPS Growth1 promotes shareholder value by focusing on EPS growth based on the last two years of the plan.
|
30% | 6.0% | 8.0% | 10.0% | 5.6% | ||||||||||||
ROACE as a % of Allowed Return2 measures Hawaiian Electric’s performance in attaining the level of ROACE it is permitted to earn by its regulator based on the average of the last two years of the plan. The focus on ROACE encourages improved return compared to the cost of capital.
|
50% | 84% | 88% | 92% | 84% | ||||||||||||
HEI Relative TSR3 compares the value created for HEI shareholders to that created by other investor-owned electric companies (EEI Index).
|
20% |
30th
percentile
|
50th
percentile
|
70th
percentile
|
37th
percentile
|
Name | Payout (Shares) | Dividend Equivalent (DE) Shares | Total (Payout plus DE Shares) | ||||||||
Scott W. H. Seu | 868 | 91 | 959 | ||||||||
Tayne S. Y. Sekimura | 2,039 | 214 | 2,253 | ||||||||
Jimmy D. Alberts | 1,409 | 148 | 1,557 | ||||||||
Colton K. Ching | 902 | 95 | 997 | ||||||||
Ronald R. Cox | 937 | 98 | 1,035 | ||||||||
Alan M. Oshima | 7,159 | 752 | 7,911 | ||||||||
Year ended December 31 | 2018 | |||||||||||||
(in millions) | ||||||||||||||
UTILITY NET INCOME | ||||||||||||||
GAAP (as reported) | $ | 143.7 | ||||||||||||
Excluding special items (after‑tax) for LTIP purposes: | ||||||||||||||
Ongoing impacts relating to the termination of merger1
|
12.4 | |||||||||||||
Federal tax reform and related impacts2
|
(4.7) | |||||||||||||
Non‑GAAP (adjusted) net income for 2018-20 LTIP purposes | $ | 151.3 | ||||||||||||
Name and 2020
Principal Positions |
Year |
Salary
($) (1) |
Stock
Awards ($) (2) |
Nonequity
Incentive Plan Compen- sation ($) (3) |
Change in
Pension Value and Nonqualified Deferred Compensation Earnings ($) (4) |
All Other
Compen- sation ($) (5) |
Total
Without Change in Pension Value ($) (6) |
Total ($) | |||||||||||||||||||||||||||||||||||||||
Scott W. H. Seu | 2020 | 419,750 | 651,282 | 394,587 | 999,547 | — | 1,465,619 | 2,465,166 | |||||||||||||||||||||||||||||||||||||||
President and Chief Executive Officer | |||||||||||||||||||||||||||||||||||||||||||||||
Tayne S. Y. Sekimura | 2020 | 383,133 | 326,050 | 240,031 | 857,936 | — | 949,214 | 1,807,150 | |||||||||||||||||||||||||||||||||||||||
Senior Vice President and Chief Financial Officer | 2019 | 371,983 | 319,518 | 144,627 | 755,908 | — | 836,128 | 1,592,036 | |||||||||||||||||||||||||||||||||||||||
2018 | 361,133 | 311,322 | 328,775 | — | — | 1,001,230 | 1,001,230 | ||||||||||||||||||||||||||||||||||||||||
Jimmy D. Alberts | 2020 | 294,167 | 235,620 | 165,911 | 120,364 | 16,403 | 712,101 | 832,465 | |||||||||||||||||||||||||||||||||||||||
Senior Vice President, Business Development & Strategic Planning | 2019 | 285,617 | 230,804 | 99,908 | 99,696 | 19,644 | 635,973 | 735,669 | |||||||||||||||||||||||||||||||||||||||
2018 | 277,350 | 224,879 | 227,346 | 31,731 | 18,964 | 748,539 | 780,270 | ||||||||||||||||||||||||||||||||||||||||
Colton K. Ching | 2020 | 282,717 | 226,416 | 159,452 | 584,621 | — | 668,585 | 1,253,206 | |||||||||||||||||||||||||||||||||||||||
Senior Vice President, Planning & Technology | |||||||||||||||||||||||||||||||||||||||||||||||
Ronald R. Cox | 2020 | 294,167 | 235,620 | 165,911 | 226,743 | — | 695,698 | 922,441 | |||||||||||||||||||||||||||||||||||||||
Senior Vice President, Operations | 2019 | 285,517 | 230,728 | 99,874 | 264,070 | — | 616,119 | 880,189 | |||||||||||||||||||||||||||||||||||||||
Alan M. Oshima | 2020 | 385,017 | — | — | 120,571 | 12,125 | 397,142 | 517,713 | |||||||||||||||||||||||||||||||||||||||
Former President and Chief Executive Officer | 2019 | 707,350 | 1,143,849 | 412,527 | 165,887 | 14,160 | 2,277,886 | 2,443,773 | |||||||||||||||||||||||||||||||||||||||
2018 | 686,750 | 1,114,464 | 1,012,797 | 91,578 | 13,635 | 2,827,646 | 2,919,224 | ||||||||||||||||||||||||||||||||||||||||
Name |
Contributions to Defined Contribution
Plans ($)a
|
Other
($)b
|
Total All Other
Compensation ($) |
||||||||
Scott W. H. Seu* | — | — | — | ||||||||
Tayne S. Y. Sekimura* | — | — | — | ||||||||
Jimmy D. Alberts | 8,818 | 7,585 | 16,403 | ||||||||
Colton K. Ching* | — | — | — | ||||||||
Ronald R. Cox* | — | — | — | ||||||||
Alan M. Oshima | 9,750 | 2,375 | 12,125 | ||||||||
Estimated Future Payouts
Under Nonequity Incentive Plan Awards (1) |
Estimated Future Payouts
Under Equity Incentive Plan Awards (2) |
All Other
Stock Awards: Number of Shares of Stock or Units (#) (3) |
Grant Date Fair Value
of Stock Awards ($) (4) |
||||||||||||||||||||||||||||||||||||||||||||||||||
Name |
Grant
Date |
Threshold ($) |
Target
($) |
Maximum
($) |
Threshold (#) |
Target
(#) |
Maximum
(#) |
||||||||||||||||||||||||||||||||||||||||||||||
Scott W. H. Seu | 2/11/20 EICP | 157,406 | 314,813 | 629,625 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
2/11/20 LTIP | — | — | — | 3,488 | 6,975 | 13,951 | — | 336,446 | |||||||||||||||||||||||||||||||||||||||||||||
2/11/20 RSU | — | — | — | — | — | — | 6,540 | 314,836 | |||||||||||||||||||||||||||||||||||||||||||||
Tayne S. Y. Sekimura | 2/11/20 EICP | 95,783 | 191,567 | 383,133 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
2/11/20 LTIP | — | — | — | 1,990 | 3,979 | 7,959 | — | 191,932 | |||||||||||||||||||||||||||||||||||||||||||||
2/11/20 RSU | — | — | — | — | — | — | 2,786 | 134,118 | |||||||||||||||||||||||||||||||||||||||||||||
Jimmy D. Alberts | 2/11/20 EICP | 66,188 | 132,375 | 264,750 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
2/11/20 LTIP | — | — | — | 1,375 | 2,750 | 5,500 | — | 132,649 | |||||||||||||||||||||||||||||||||||||||||||||
2/11/20 RSU | — | — | — | — | — | — | 2,139 | 102,971 | |||||||||||||||||||||||||||||||||||||||||||||
Colton K. Ching | 2/11/20 EICP | 63,611 | 127,223 | 254,445 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
2/11/20 LTIP | — | — | — | 1,321 | 2,643 | 5,286 | — | 127,488 | |||||||||||||||||||||||||||||||||||||||||||||
2/11/20 RSU | — | — | — | — | — | — | 2,055 | 98,928 | |||||||||||||||||||||||||||||||||||||||||||||
Ronald R. Cox | 2/11/20 EICP | 66,188 | 132,375 | 264,750 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
2/11/20 LTIP | — | — | — | 1,375 | 2,750 | 5,500 | — | 132,649 | |||||||||||||||||||||||||||||||||||||||||||||
2/11/20 RSU | — | — | — | — | — | — | 2,139 | 102,971 | |||||||||||||||||||||||||||||||||||||||||||||
Stock Awards | |||||||||||||||||||||||||||||
Equity Incentive Plan Awards | |||||||||||||||||||||||||||||
Shares or Units of Stock That Have Not Vested (1) | Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) (3) | Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) (2) | |||||||||||||||||||||||||||
Name | Grant Year | Number (#) | Market Value ($) (2) | ||||||||||||||||||||||||||
Scott W. H. Seu | 2017 | 374 | 13,236 | — | — | ||||||||||||||||||||||||
2018 | 750 | 26,543 | — | — | |||||||||||||||||||||||||
2019 | 1,913 | 67,701 | 6,559 | 232,123 | |||||||||||||||||||||||||
2020 | 6,540 | 231,451 | 13,951 | 493,726 | |||||||||||||||||||||||||
Total | 9,577 | 338,931 | 20,510 | 725,849 | |||||||||||||||||||||||||
Tayne S. Y. Sekimura | 2017 | 917 | 32,453 | — | — | ||||||||||||||||||||||||
2018 | 1,852 | 65,542 | — | — | |||||||||||||||||||||||||
2019 | 2,591 | 91,695 | 9,872 | 349,370 | |||||||||||||||||||||||||
2020 | 2,786 | 98,597 | 7,959 | 281,669 | |||||||||||||||||||||||||
Total | 8,146 | 288,287 | 17,831 | 631,039 | |||||||||||||||||||||||||
Jimmy D. Alberts | 2017 | 703 | 24,879 | — | — | ||||||||||||||||||||||||
2018 | 1,422 | 50,325 | — | — | |||||||||||||||||||||||||
2019 | 1,990 | 70,426 | 6,822 | 241,431 | |||||||||||||||||||||||||
2020 | 2,139 | 75,699 | 5,500 | 194,645 | |||||||||||||||||||||||||
Total | 6,254 | 221,329 | 12,322 | 436,076 | |||||||||||||||||||||||||
Colton K. Ching | 2017 | 389 | 13,767 | — | — | ||||||||||||||||||||||||
2018 | 781 | 27,640 | — | — | |||||||||||||||||||||||||
2019 | 1,912 | 67,666 | 6,556 | 232,017 | |||||||||||||||||||||||||
2020 | 2,055 | 72,726 | 5,286 | 187,072 | |||||||||||||||||||||||||
Total | 5,137 | 181,799 | 11,842 | 419,089 | |||||||||||||||||||||||||
Ronald R. Cox | 2017 | 404 | 14,298 | — | — | ||||||||||||||||||||||||
2018 | 811 | 28,701 | — | — | |||||||||||||||||||||||||
2019 | 1,989 | 70,391 | 6,820 | 241,360 | |||||||||||||||||||||||||
2020 | 2,139 | 75,699 | 5,500 | 194,645 | |||||||||||||||||||||||||
Total | 5,343 | 189,089 | 12,320 | 436,005 | |||||||||||||||||||||||||
Alan M. Oshima | 2017 | 2,917 | 103,233 | — | — | ||||||||||||||||||||||||
2018 | 2,999 | 106,135 | — | — | |||||||||||||||||||||||||
2019 | 2,542 | 89,961 | 22,788 | 806,467 | |||||||||||||||||||||||||
2020 | — | — | — | — | |||||||||||||||||||||||||
Total | 8,458 | 299,329 | 22,788 | 806,467 |
Stock Awards | |||||||||||||||||||||||
Name | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($) | |||||||||||||||||||||
Scott W. H. Seu | 1,471 |
(1)
|
74,138 | ||||||||||||||||||||
959 |
(2)
|
33,939 |
(3)
|
||||||||||||||||||||
Tayne S. Y. Sekimura | 4,042 |
(1)
|
203,717 | ||||||||||||||||||||
2,253 |
(2)
|
79,734 |
(3)
|
||||||||||||||||||||
Jimmy D. Alberts | 3,105 |
(1)
|
156,492 | ||||||||||||||||||||
1,557 |
(2)
|
55,102 |
(3)
|
||||||||||||||||||||
Colton K. Ching | 1,502 |
(1)
|
75,701 | ||||||||||||||||||||
997 |
(2)
|
35,284 |
(3)
|
||||||||||||||||||||
Ronald R. Cox | 1,562 |
(1)
|
78,724 | ||||||||||||||||||||
1,035 |
(2)
|
36,629 |
(3)
|
||||||||||||||||||||
Alan M. Oshima | 13,801 |
(1)
|
695,570 | ||||||||||||||||||||
7,911 |
(2)
|
279,970 |
(3)
|
Name | Number of Shares Acquired on Vesting | Compounded Dividend Equivalents | Total Shares Acquired on Vesting | |||||||||||||||||
Scott W. H. Seu | 1,387 | 84 | 1,471 | |||||||||||||||||
Tayne S. Y. Sekimura | 3,707 | 335 | 4,042 | |||||||||||||||||
Jimmy D. Alberts | 2,847 | 258 | 3,105 | |||||||||||||||||
Colton K. Ching | 1,416 | 86 | 1,502 | |||||||||||||||||
Ronald R. Cox | 1,472 | 90 | 1,562 | |||||||||||||||||
Alan M. Oshima | 12,677 | 1,124 | 13,801 | |||||||||||||||||
Name | Number of Shares Acquired on Vesting | Compounded Dividend Equivalents | Total Shares Acquired on Vesting | |||||||||||||||||
Scott W. H. Seu | 868 | 91 | 959 | |||||||||||||||||
Tayne S. Y. Sekimura | 2,039 | 214 | 2,253 | |||||||||||||||||
Jimmy D. Alberts | 1,409 | 148 | 1,557 | |||||||||||||||||
Colton K. Ching | 902 | 95 | 997 | |||||||||||||||||
Ronald R. Cox | 937 | 98 | 1,035 | |||||||||||||||||
Alan M. Oshima | 7,159 | 752 | 7,911 | |||||||||||||||||
Name | Plan Name |
Number of
Years of Credited Service (#) |
Present Value of
Accumulated Benefit ($) (4) |
Payments During
the Last Fiscal Year ($) |
|||||||||||||||||||
Scott W. H. Seu | HEI Retirement Plan (1) | 27.3 | 2,686,155 | — | |||||||||||||||||||
HEI Excess Pay Plan (2) | 27.3 | 425,879 | — | ||||||||||||||||||||
HEI Executive Death Benefit (3) | — | 107,941 | — | ||||||||||||||||||||
Tayne S. Y. Sekimura | HEI Retirement Plan (1) | 29.6 | 3,488,770 | — | |||||||||||||||||||
HEI Excess Pay Plan (2) | 29.6 | 1,147,410 | — | ||||||||||||||||||||
HEI Executive Death Benefit (3) | — | 227,898 | — | ||||||||||||||||||||
Jimmy D. Alberts | HEI Retirement Plan (1) | 8.3 | 480,576 | — | |||||||||||||||||||
HEI Excess Pay Plan (2) | 8.3 | 10,430 | — | ||||||||||||||||||||
Colton K. Ching | HEI Retirement Plan (1) | 29.9 | 2,843,016 | — | |||||||||||||||||||
HEI Executive Death Benefit (3) | — | 82,172 | — | ||||||||||||||||||||
Ronald R. Cox | HEI Retirement Plan (1) | 15.1 | 1,562,693 | — | |||||||||||||||||||
HEI Excess Pay Plan (2) | 15.1 | 32,706 | — | ||||||||||||||||||||
HEI Executive Death Benefit (3) | — | 124,766 | — | ||||||||||||||||||||
Alan M. Oshima | HEI Retirement Plan (1) | 9.2 | 434,333 | — | |||||||||||||||||||
HEI Excess Pay Plan (2) | 9.2 | 636,611 | — | ||||||||||||||||||||
Name |
Executive
Contributions
in Last FY ($)1
|
Registrant
Contributions
in Last FY ($)
|
Aggregate
Earnings/(Losses)
in Last FY ($)
|
Aggregate
Withdrawals/
Distributions ($)
|
Aggregate
Balance at
Last FYE ($)2
|
||||||||||||
Tayne S. Y. Sekimura
|
— | — | 24,099 | — | 201,501 | ||||||||||||
Alan M. Oshima | — | — | 45,021 | 362,435 | 535,541 |
Name/
Benefit Plan or Program
|
Retirement on 12/31/20
($) (1) |
Termination due to death or disability
on 12/31/20 ($) (2) |
Voluntary termination, termination for and without cause on
12/31/20 ($) (3) |
Termination after change in control on 12/31/20
($) (4) |
|||||||||||||||||||
Scott W. H. Seu | |||||||||||||||||||||||
Executive Incentive Compensation Plan (5) | — | — | — | — | |||||||||||||||||||
Long-Term Incentive Plan (6) | 167,608 | 167,608 | — | — | |||||||||||||||||||
Restricted Stock Units (7) | 106,755 | 106,755 | — | — | |||||||||||||||||||
Change-In-Control Agreement (4) | — | — | — | 1,133,364 | |||||||||||||||||||
TOTAL | 274,363 | 274,363 | — | 1,133,364 | |||||||||||||||||||
Tayne S. Y. Sekimura | |||||||||||||||||||||||
Executive Incentive Compensation Plan (5) | — | — | — | — | |||||||||||||||||||
Long-Term Incentive Plan (6) | 172,703 | 172,703 | — | 331,960 | |||||||||||||||||||
Restricted Stock Units (7) | 126,648 | 126,648 | — | 309,380 | |||||||||||||||||||
TOTAL | 299,351 | 299,351 | — | 641,340 | |||||||||||||||||||
Jimmy D. Alberts | |||||||||||||||||||||||
Executive Incentive Compensation Plan (5) | — | — | — | — | |||||||||||||||||||
Long-Term Incentive Plan (6) | 119,335 | 119,335 | — | 229,411 | |||||||||||||||||||
Restricted Stock Units (7) | 97,200 | 97,200 | — | 237,502 | |||||||||||||||||||
TOTAL | 216,535 | 216,535 | — | 466,913 | |||||||||||||||||||
Colton K. Ching | |||||||||||||||||||||||
Executive Incentive Compensation Plan (5) | — | — | — | — | |||||||||||||||||||
Long-Term Incentive Plan (6) | 114,700 | 114,700 | — | 220,474 | |||||||||||||||||||
Restricted Stock Units (7) | 70,328 | 70,328 | — | 193,691 | |||||||||||||||||||
TOTAL | 185,028 | 185,028 | — | 414,165 | |||||||||||||||||||
Ronald R. Cox | |||||||||||||||||||||||
Executive Incentive Compensation Plan (5) | — | — | — | — | |||||||||||||||||||
Long-Term Incentive Plan (6) | 119,335 | 119,335 | — | 229,374 | |||||||||||||||||||
Restricted Stock Units (7) | 73,142 | 73,142 | — | 201,475 | |||||||||||||||||||
TOTAL | 192,477 | 192,477 | — | 430,849 | |||||||||||||||||||
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
Amount and Nature of Beneficial Ownership of HEI Common Stock | |||||||||||||||||||||||||||||
Name of Individual
or Group |
Sole Voting or
Investment
Power
(1)
|
Shared Voting
or Investment
Power
(2)
|
Other
Beneficial
Ownership
(3)
|
Restricted
Stock Units
(4)
|
Total
(5)
|
||||||||||||||||||||||||
Nonemployee directors | |||||||||||||||||||||||||||||
James A. Ajello | 50,239 | 50,239 | |||||||||||||||||||||||||||
Kevin M. Burke | 5,116 | 5,116 | |||||||||||||||||||||||||||
Timothy E. Johns | 46,727 | 46,727 | |||||||||||||||||||||||||||
Alana K. Pakkala | 1,525 | 1,525 | |||||||||||||||||||||||||||
Kelvin H. Taketa | 28,838 | 28,838 | |||||||||||||||||||||||||||
Employee director and Named Executive Officer
|
|||||||||||||||||||||||||||||
Scott W. H. Seu | 5,276 | 408 | 4,229 | 9,913 | |||||||||||||||||||||||||
Other Named Executive Officers | |||||||||||||||||||||||||||||
Jimmy D. Alberts | 23,182 | 3,444 | 26,626 | ||||||||||||||||||||||||||
Colton K. Ching | 17,057 | 77 | 2,573 | 19,707 | |||||||||||||||||||||||||
Ronald R. Cox | 1,834 | 2,201 | 4,035 | ||||||||||||||||||||||||||
Tayne S. Y. Sekimura | 55,482 | 4,475 | 59,957 | ||||||||||||||||||||||||||
Alan M. Oshima | 70,706 | 9,362 | 80,068 | ||||||||||||||||||||||||||
All directors and executive officers as a group (13 persons) | 220,799 | 122,146 | 9,263 | 30,901 | 383,109 |
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
2020 | 2019 | ||||||||||
Audit fees (primarily consisted of fees associated with the audit of the consolidated financial statements and quarterly reviews and procedures related to the adoption of the new lease standard in 2019) | $ | 1,504,400 | $ | 1,595,000 | |||||||
Audit-related fees (primarily consisted of agreed upon procedures) | 80,000 | 70,000 | |||||||||
Tax fees (consisted of tax return review) | 33,000 | 34,000 | |||||||||
All other fees | — | — | |||||||||
$ | 1,617,400 | $ | 1,699,000 |
ALLETTE, Inc. | IDACORP, Inc. | ||||
Alliant Energy Corp. | MDU Resources Group Inc. | ||||
Ameren Corp. | MGE Energy, Inc. | ||||
American Electric Power Co., Inc. | NextEra Energy, Inc. | ||||
AVANGRID, Inc. | NiSource Inc. | ||||
Avista Corp. | NorthWestern Corp. | ||||
Black Hills Corp. | OGE Energy Corp. | ||||
Centerpoint Energy, Inc. | Otter Tail Corp. | ||||
CMS Energy Corp. | PG&E Corp. | ||||
Consolidated Edison, Inc. | Pinnacle West Capital Corp. | ||||
Dominion Energy, Inc. | PNM Resources Inc. | ||||
DTE Energy Co. | Portland General Electric Co. | ||||
Duke Energy Corp. | PPL Corp. | ||||
Edison International | Public Service Enterprise Group Inc. | ||||
El Paso Electric Co.1
|
Sempra Energy | ||||
Entergy Corp. | Southern Co. | ||||
Evergy, Inc. | Unitil Corp. | ||||
Eversource Energy | WEC Energy Group, Inc. | ||||
Exelon Corp. | Xcel Energy Inc. | ||||
FirstEnergy Corp. |
Years ended December 31 | ||||||||||||||
2020 | 2019 | 2018 | ||||||||||||
UTILITY NET INCOME | ||||||||||||||
GAAP (as reported) | $ | 169.3 | $ | 156.8 | $ | 143.7 | ||||||||
Excluding special items (after‑tax) for LTIP purposes only: | ||||||||||||||
Ongoing impacts relating to the termination of merger2
|
— | — | 12.4 | |||||||||||
Federal tax reform and related impacts3
|
— | — | (4.7) | |||||||||||
Non‑GAAP (adjusted) net income for 2018-20 LTIP purposes | $ | 169.3 | $ | 156.8 | $ | 151.3 | ||||||||
HAWAIIAN ELECTRIC CONSOLIDATED BASIC EARNINGS PER SHARE | ||||||||||||||
Based on GAAP | $ | 1.55 | $ | 1.44 | $ | 1.32 | ||||||||
Based on non‑GAAP Utility net income (adjusted) for 2018‑20 LTIP purposes4
|
1.55 | 1.44 | 1.39 |