10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 FORM 10-Q

☒      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

 OR

     ☐         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Exact Name of Registrant as Specified in Its Charter	Commission File Number	I.R.S. Employer Identification No.
HAWAIIAN ELECTRIC INDUSTRIES, INC.	1-8503	99-0208097
and Principal Subsidiary
HAWAIIAN ELECTRIC COMPANY, INC.	1-4955	99-0040500

State of Hawaii

(State or other jurisdiction of incorporation or organization)

Hawaiian Electric Industries, Inc. – 1001 Bishop Street, Suite 2900, Honolulu, Hawaii  96813

Hawaiian Electric Company, Inc. – 1001 Bishop Street, Suite, 2500, Honolulu, Hawaii  96813

(Address of principal executive offices and zip code)

Hawaiian Electric Industries, Inc. – (808) 543-5662

Hawaiian Electric Company, Inc. – (808) 543-7771

(Registrant’s telephone number, including area code) 

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Registrant	Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Hawaiian Electric Industries, Inc.	Common Stock, Without Par Value	HE	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Hawaiian Electric Industries, Inc. Yes ☒ No ☐ Hawaiian Electric Company, Inc. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Hawaiian Electric Industries, Inc. Yes ☒ No ☐ Hawaiian Electric Company, Inc. Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Securities Exchange Act of 1934.

Hawaiian Electric Industries, Inc.:				Hawaiian Electric Company, Inc.:
Large accelerated filer	☒	Smaller reporting company	☐	Large accelerated filer	☐	Smaller reporting company	☐
Accelerated filer	☐	Emerging growth company	☐	Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐			Non-accelerated filer	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Hawaiian Electric Industries, Inc. ☐ Hawaiian Electric Company, Inc. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Hawaiian Electric Industries, Inc. Yes ☐ No ☒ Hawaiian Electric Company, Inc. Yes ☐ No ☒

Securities registered pursuant to 12(b) of the Act:

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuers’ classes of common stock, as of the latest practicable date.

Class of Common Stock	Outstanding April 23, 2021
Hawaiian Electric Industries, Inc. (Without Par Value)	109,181,493	Shares
Hawaiian Electric Company, Inc. ($6-2/3 Par Value)	17,324,376	Shares (not publicly traded)

Hawaiian Electric Industries, Inc. (HEI) is the sole holder of Hawaiian Electric Company, Inc. (Hawaiian Electric) common stock.

This combined Form 10-Q is separately filed by HEI and Hawaiian Electric. Information contained herein relating to any individual registrant is filed by such registrant on its own behalf. No registrant makes any representation as to information relating to the other registrant, except that information relating to Hawaiian Electric is also attributed to HEI.

Hawaiian Electric Industries, Inc. and Subsidiaries

Hawaiian Electric Company, Inc. and Subsidiaries

Form 10-Q—Quarter ended March 31, 2021

TABLE OF CONTENTS

Page No.
ii	Glossary of Terms
iv	Cautionary Note Regarding Forward-Looking Statements
	PART I. FINANCIAL INFORMATION
1	Item 1.	Financial Statements
		Hawaiian Electric Industries, Inc. and Subsidiaries
1		Condensed Consolidated Statements of Income (unaudited) - three months ended March 31, 2021 and 2020
2		Condensed Consolidated Statements of Comprehensive Income (unaudited) - three months ended March 31, 2021 and 2020
3		Condensed Consolidated Balance Sheets (unaudited) - March 31, 2021 and December 31, 2020
4		Condensed Consolidated Statements of Changes in Shareholders’ Equity (unaudited) - three months ended March 31, 2021 and 2020
5		Condensed Consolidated Statements of Cash Flows (unaudited) - three months ended March 31, 2021 and 2020
		Hawaiian Electric Company, Inc. and Subsidiaries
6		Condensed Consolidated Statements of Income (unaudited) - three months ended March 31, 2021 and 2020
6		Condensed Consolidated Statements of Comprehensive Income (unaudited) - three months ended March 31, 2021 and 2020
7		Condensed Consolidated Balance Sheets (unaudited) - March 31, 2021 and December 31, 2020
8		Condensed Consolidated Statements of Changes in Common Stock Equity (unaudited) - three months ended March 31, 2021 and 2020
9		Condensed Consolidated Statements of Cash Flows (unaudited) - three months ended March 31, 2021 and 2020
9		Notes to Condensed Consolidated Financial Statements (unaudited)
51	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations
51		HEI consolidated
56		Electric Utilities
69		Bank
76	Item 3.	Quantitative and Qualitative Disclosures About Market Risk
77	Item 4.	Controls and Procedures
	PART II.	OTHER INFORMATION
78	Item 1.	Legal Proceedings
78	Item 1A.	Risk Factors
78	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds
79	Item 6.	Exhibits
80	Signatures

i

Hawaiian Electric Industries, Inc. and Subsidiaries

Hawaiian Electric Company, Inc. and Subsidiaries

Form 10-Q—Quarter ended March 31, 2021

GLOSSARY OF TERMS

Terms	Definitions
ACL	Allowance for credit losses, which is the current credit loss standard, requires recording the allowance based on the expected loss model
AES Hawaii	AES Hawaii, Inc.
AFS	Available for sale
AMI	Advanced Metering Infrastructure
AOCI	Accumulated other comprehensive income/(loss)
ARA	Annual revenue adjustment
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.
ASU	Accounting Standards Update
CARES Act	The Coronavirus Aid, Relief, and Economic Security Act enacted March 27, 2020
CBRE	Community-based renewable energy
Company	Hawaiian Electric Industries, Inc. and its direct and indirect subsidiaries, including, without limitation, Hawaiian Electric Company, Inc. and its subsidiaries (listed under Hawaiian Electric); ASB Hawaii, Inc. and its subsidiary, American Savings Bank, F.S.B.; Pacific Current, LLC and its subsidiaries, Hamakua Holdings, LLC (and its subsidiary, Hamakua Energy, LLC), Mauo, LLC and Ka‘ie‘ie Waho Company, LLC; and The Old Oahu Tug Service, Inc. (formerly Hawaiian Tug & Barge Corp.)
Consumer Advocate	Division of Consumer Advocacy, Department of Commerce and Consumer Affairs of the State of Hawaii
D&O	Decision and order from the PUC
Dodd-Frank Act	Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
DOH	Department of Health of the State of Hawaii
DRIP	HEI Dividend Reinvestment and Stock Purchase Plan
ECRC	Energy cost recovery clause
EIP	2010 Equity and Incentive Plan, as amended and restated
EPA	Environmental Protection Agency — federal
EPRM	Exceptional Project Recovery Mechanism
EPS	Earnings per share
ERP/EAM	Enterprise Resource Planning/Enterprise Asset Management
ESG	Environmental, Social & Governance
ESM	Earnings Sharing Mechanism
EVE	Economic value of equity
Exchange Act	Securities Exchange Act of 1934
FASB	Financial Accounting Standards Board
FDIC	Federal Deposit Insurance Corporation
federal	U.S. Government
FHLB	Federal Home Loan Bank
FHLMC	Federal Home Loan Mortgage Corporation
FNMA	Federal National Mortgage Association
FRB	Federal Reserve Board
GAAP	Accounting principles generally accepted in the United States of America
GNMA	Government National Mortgage Association
Hamakua Energy	Hamakua Energy, LLC, an indirect subsidiary of HEI
Hawaii Electric Light	Hawaii Electric Light Company, Inc., an electric utility subsidiary of Hawaiian Electric Company, Inc.

ii

GLOSSARY OF TERMS, continued

Terms	Definitions
Hawaiian Electric	Hawaiian Electric Company, Inc., an electric utility subsidiary of Hawaiian Electric Industries, Inc. and parent company of Hawaii Electric Light Company, Inc., Maui Electric Company, Limited and Renewable Hawaii, Inc. Uluwehiokama Biofuels Corp. was dissolved effective as of July 14, 2020
HEI	Hawaiian Electric Industries, Inc., direct parent company of Hawaiian Electric Company, Inc., ASB Hawaii, Inc., Pacific Current, LLC and The Old Oahu Tug Service, Inc. (formerly Hawaiian Tug & Barge Corp.)
HEIRSP	Hawaiian Electric Industries Retirement Savings Plan
HELOC	Home equity line of credit
HPOWER	City and County of Honolulu with respect to a power purchase agreement for a refuse-fired plant
IPP	Independent power producer
Kalaeloa	Kalaeloa Partners, L.P.
kWh	Kilowatthour/s (as applicable)
LTIP	Long-term incentive plan
Maui Electric	Maui Electric Company, Limited, an electric utility subsidiary of Hawaiian Electric Company, Inc.
Mauo	Mauo, LLC, an indirect subsidiary of HEI
MPIR	Major Project Interim Recovery
MSR	Mortgage servicing right
MW	Megawatt/s (as applicable)
MRP	Multi-year rate period
NII	Net interest income
NPBC	Net periodic benefit costs
NPPC	Net periodic pension costs
O&M	Other operation and maintenance
OCC	Office of the Comptroller of the Currency
OPEB	Postretirement benefits other than pensions
Pacific Current	Pacific Current, LLC, a wholly owned subsidiary of HEI and parent company of Hamakua Holdings, LLC, Mauo, LLC, and Ka‘ie‘ie Waho Company, LLC
PBR	Performance-based regulation
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
PV	Photovoltaic
RAM	Rate adjustment mechanism
RBA	Revenue balancing account
REIP	Renewable Energy Infrastructure Program
RFP	Request for proposals
ROACE	Return on average common equity
RORB	Return on rate base
RPS	Renewable portfolio standards
SEC	Securities and Exchange Commission
See	Means the referenced material is incorporated by reference
Tax Act	2017 Tax Cuts and Jobs Act (H.R. 1, An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018)
TDR	Troubled debt restructuring
Utilities	Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited
VIE	Variable interest entity

iii

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report and other presentations made by Hawaiian Electric Industries, Inc. (HEI) and Hawaiian Electric Company, Inc. (Hawaiian Electric) and their subsidiaries contain “forward-looking statements,” which include statements that are predictive in nature, depend upon or refer to future events or conditions and usually include words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates” or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI and its subsidiaries (collectively, the Company), the performance of the industries in which they do business and economic, political and market factors, among other things. These forward-looking statements are not guarantees of future performance and actual results and financial condition may differ materially from those indicated in the forward-looking statements.

Risks, uncertainties and other important factors that could cause actual results to differ materially from those described in forward-looking statements and from historical results include, but are not limited to, the following:

•international, national and local economic and political conditions—including the state of the Hawaii tourism, defense and construction industries; the strength or weakness of the Hawaii and continental U.S. real estate markets (including the fair value and/or the actual performance of collateral underlying loans held by ASB, which could result in higher loan loss provisions and write-offs); decisions concerning the extent of the presence of the federal government and military in Hawaii; the implications and potential impacts of future Federal government shutdowns, including the impact to our customers to pay their electric bills and/or bank loans and the impact on the state of Hawaii economy; the implications and potential impacts of U.S. and foreign capital and credit market conditions and federal, state and international responses to those conditions; the potential impacts of global and local developments (including global economic conditions and uncertainties, unrest, terrorist acts, wars, conflicts, political protests, deadly virus epidemic or other crisis); the effects of changes that have or may occur in U.S. policy, such as with respect to immigration and trade; and pandemics;

•the extent of the impact of the COVID-19 pandemic, including the duration, spread, severity and any recurrence of the COVID-19 pandemic, the duration and scope of related government orders and restrictions, the impact on our employees, customers and suppliers, and the impact of the COVID-19 pandemic on the overall demand for the Company’s goods and services, all of which could be affected by the pace of distribution, administration, and efficacy of COVID-19 vaccines over the short- and long-term, as well as the proportion of the population vaccinated;

•ability to adequately address risks and capitalize on opportunities related to our ESG priority areas, which currently include decarbonization, economic health and affordability, reliability and resilience, secure digitalization, diversity, equity and inclusion, employee engagement, and climate-related risks and opportunities;

•citizen activism, including civil unrest, especially in times of severe economic depression and social divisiveness, which could negatively impact customers and employees, impair the ability of the Company and the Utilities to operate and maintain its facilities in an effective and safe manner, and citizen activism and stakeholder activism could delay the construction, increase project costs or preclude the completion, of third-party or Utility projects that are required to meet electricity demand, reliability objectives and renewable portfolio standards (RPS) goals;

•the effects of future actions or inaction of the U.S. government or related agencies, including those related to the U.S. debt ceiling or budget funding, monetary policy, trade policy and tariffs, energy and environmental policy, and other policy and regulatory changes advanced or proposed by President Biden and his administration;

•weather, natural disasters (e.g., hurricanes, earthquakes, tsunamis, lightning strikes, lava flows and the increasing effects of climate change, such as more severe storms, flooding, droughts, heat waves, and rising sea levels) and wildfires, including their impact on the resilience and reliability of the Company’s and Utilities’ operations and the economy;

•the timing, speed and extent of changes in interest rates and the shape of the yield curve, which could result in lower portfolio yields and net interest margin;

•the ability of the Company and the Utilities to access the credit and capital markets (e.g., to obtain commercial paper and other short-term and long-term debt financing, including lines of credit, and, in the case of HEI, to issue common stock) under volatile and challenging market conditions, and the cost of such financings, if available;

•the risks inherent in changes in the value of the Company’s pension and other retirement plan assets and ASB’s securities available for sale, and the risks inherent in changes in the value of the Company’s pension liabilities, including changes driven by interest rates;

•changes in laws, regulations (including tax regulations), market conditions, interest rates and other factors that result in changes in assumptions used to calculate retirement benefits costs and funding requirements;

•the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) and of the rules and regulations that the Dodd-Frank Act requires to be promulgated, as amended by the Economic Growth, Regulatory Relief and Consumer Protection Act;

•increasing competition in the banking industry (e.g., increased price competition for deposits, or an outflow of deposits to alternative investments, which may have an adverse impact on ASB’s cost of funds);

iv

•the potential delay by the Public Utilities Commission of the State of Hawaii (PUC) in considering (and potential disapproval of actual or proposed) renewable energy proposals and related costs; reliance by the Utilities on outside parties such as the state, independent power producers (IPPs) and developers; and uncertainties surrounding technologies, solar power, wind power, biofuels, environmental assessments required to meet RPS goals; the impacts of implementation of the renewable energy proposals on future costs of electricity and potential penalties imposed by the PUC for delays in the commercial operations of renewable energy projects;

•the ability of the Utilities to develop, implement and recover the costs of implementing the Utilities’ action plans included in their updated Power Supply Improvement Plans, Demand Response Portfolio Plan, Distributed Generation Interconnection Plan, Grid Modernization Plans, and business model changes, which have been and are continuing to be developed and updated in response to the orders issued by the PUC, the PUC’s April 2014 statement of its inclinations on the future of Hawaii’s electric utilities and the vision, business strategies and regulatory policy changes required to align the Utilities’ business model with customer interests and the state’s public policy goals, and subsequent orders of the PUC;

•the ability of the Utilities to recover undepreciated cost of fossil fuel generating units, if they are retired before the end of their expected useful life;

•capacity and supply constraints or difficulties, especially if generating units (utility-owned or IPP-owned) fail or measures such as demand-side management, distributed generation, combined heat and power or other firm capacity supply-side resources fall short of achieving their forecasted benefits or are otherwise insufficient to reduce or meet peak demand;

•fuel oil price changes, delivery of adequate fuel by suppliers and the continued availability to the electric utilities of their energy cost recovery clauses (ECRCs);

•the continued availability to the electric utilities or modifications of other cost recovery mechanisms, including the purchased power adjustment clauses (PPACs), rate adjustment mechanisms (RAMs) and pension and postretirement benefits other than pensions (OPEB) tracking mechanisms, and the continued decoupling of revenues from sales to mitigate the effects of declining kilowatthour sales;

•the ability of the Utilities to recover increasing costs and earn a reasonable return on capital investments not covered by the annual revenue adjustment (ARA);

•the ability of the Utilities to achieve performance incentive goals currently in place;

•the impact from the PUC’s implementation of performance-based ratemaking for the Utilities pursuant to Act 005, Session Laws 2018, including the potential addition of new performance incentive mechanisms (PIMs), third-party proposals adopted by the PUC in its implementation of performance-based regulation (PBR), and the implications of not achieving performance incentive goals;

•the impact of fuel price levels and volatility on customer satisfaction and political and regulatory support for the Utilities;

•the risks associated with increasing reliance on renewable energy, including the availability and cost of non-fossil fuel supplies for renewable energy generation and the operational impacts of adding intermittent sources of renewable energy to the electric grid;

•the growing risk that energy production from renewable generating resources may be curtailed and the interconnection of additional resources will be constrained as more generating resources are added to the Utilities’ electric systems and as customers reduce their energy usage;

•the ability of IPPs to deliver the firm capacity anticipated in their power purchase agreements (PPAs);

•the potential that, as IPP contracts near the end of their terms, there may be less economic incentive for the IPPs to make investments in their units to ensure the availability of their units;

•the ability of the Utilities to negotiate, periodically, favorable agreements for significant resources such as fuel supply contracts and collective bargaining agreements and avoid or mitigate labor disputes and work stoppages;

•new technological developments that could affect the operations and prospects of the Utilities and ASB or their competitors such as the commercial development of energy storage and microgrids and banking through alternative channels;

•cybersecurity risks and the potential for cyber incidents, including potential incidents at HEI, its third-party vendors, and its subsidiaries (including at ASB branches and electric utility plants) and incidents at data processing centers used, to the extent not prevented by intrusion detection and prevention systems, anti-virus software, firewalls and other general IT controls;

•failure to achieve remaining cost savings commitment related to the Enterprise Resource Planning/Enterprise Asset Management (ERP/EAM) project-related benefits and the management audit committed savings of $33 million over the 2021 to 2025 multi-year rate period (MRP);

•federal, state, county and international governmental and regulatory actions, such as existing, new and changes in laws, rules and regulations applicable to HEI, the Utilities and ASB (including changes in taxation and tax rates, increases in capital requirements, regulatory policy changes, environmental laws and regulations (including resulting compliance costs and risks of fines and penalties and/or liabilities), the regulation of greenhouse gas emissions, governmental fees and assessments (such as Federal Deposit Insurance Corporation assessments), and potential carbon “cap and trade” legislation that may fundamentally alter costs to produce electricity and accelerate the move to renewable generation);

•developments in laws, regulations and policies governing protections for historic, archaeological and cultural sites, and plant and animal species and habitats, as well as developments in the implementation and enforcement of such laws, regulations and policies;

v

•discovery of conditions that may be attributable to historical chemical releases, including any necessary investigation and remediation, and any associated enforcement, litigation or regulatory oversight;

•decisions by the PUC in rate cases and other proceedings (including the risks of delays in the timing of decisions, adverse changes in final decisions from interim decisions and the disallowance of project costs as a result of adverse regulatory audit reports or otherwise);

•decisions by the PUC and by other agencies and courts on land use, environmental and other permitting issues (such as required corrective actions, restrictions and penalties that may arise, such as with respect to environmental conditions or RPS);

•potential enforcement actions by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board (FRB), the Federal Deposit Insurance Corporation (FDIC) and/or other governmental authorities (such as consent orders, required corrective actions, restrictions and penalties that may arise, for example, with respect to compliance deficiencies under existing or new banking and consumer protection laws and regulations or with respect to capital adequacy);

•the risks associated with the geographic concentration of HEI’s businesses and ASB’s loans, ASB’s concentration in a single product type (i.e., first mortgages) and ASB’s significant credit relationships (i.e., concentrations of large loans and/or credit lines with certain customers);

•changes in accounting principles applicable to HEI and its subsidiaries, including the adoption of new U.S. accounting standards, the potential discontinuance of regulatory accounting related to PBR or other regulatory changes, the effects of potentially required consolidation of variable interest entities (VIEs), or required finance lease or on-balance-sheet operating lease accounting for PPAs with IPPs;

•downgrades by securities rating agencies in their ratings of the securities of HEI and Hawaiian Electric and their impact on results of financing efforts;

•faster than expected loan prepayments that can cause an acceleration of the amortization of premiums on loans and investments and the impairment of mortgage-servicing assets of ASB;

•changes in ASB’s loan portfolio credit profile and asset quality and/or mix, which may increase or decrease the required level of provision for credit losses, allowance for credit losses (ACL) and charge-offs;

•changes in ASB’s deposit cost or mix which may have an adverse impact on ASB’s cost of funds;

•unanticipated changes from the expected discontinuance of LIBOR and the transition to an alternative reference rate, which may include adverse impacts to the Company’s cost of capital, loan portfolio and interest income on loans;

•the final outcome of tax positions taken by HEI and its subsidiaries;

•the risks of suffering losses and incurring liabilities that are uninsured (e.g., damages to the Utilities’ transmission and distribution system and losses from business interruption) or underinsured (e.g., losses not covered as a result of insurance deductibles or other exclusions or exceeding policy limits), and the risks associated with the operation of transmission and distribution assets and power generation facilities, including public and employee safety issues, and assets causing or contributing to wildfires;

•the ability of the Company’s non-regulated subsidiary, Pacific Current, LLC (Pacific Current), to achieve its performance and growth objectives, which in turn could affect its ability to service its non-recourse debt;

•the Company’s reliance on third parties and the risk of their non-performance, which has increased due to the impact from the COVID-19 pandemic; and

•other risks or uncertainties described elsewhere in this report and in other reports (e.g., “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K) previously and subsequently filed by HEI and/or Hawaiian Electric with the Securities and Exchange Commission.

Forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, Hawaiian Electric, ASB, Pacific Current and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether written or oral and whether as a result of new information, future events or otherwise.

vi

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

Hawaiian Electric Industries, Inc. and Subsidiaries

Condensed Consolidated Statements of Income (unaudited)

	Three months ended March 31
(in thousands, except per share amounts)	2021		2020
Revenues
Electric utility	$	564,864	$	597,442
Bank	77,131		79,738
Other	951		6
Total revenues	642,946		677,186
Expenses
Electric utility	495,750		553,484
Bank	41,835		60,335
Other	7,330		3,665
Total expenses	544,915		617,484
Operating income (loss)
Electric utility	69,114		43,958
Bank	35,296		19,403
Other	(6,379)		(3,659)
Total operating income	98,031		59,702
Retirement defined benefits credit (expense)—other than service costs	2,435		(934)
Interest expense, net—other than on deposit liabilities and other bank borrowings	(23,736)		(21,775)
Allowance for borrowed funds used during construction	747		688
Allowance for equity funds used during construction	2,191		2,015
Gain on sale of investment securities, net	528		—
Income before income taxes	80,196		39,696
Income taxes	15,365		5,803
Net income	64,831		33,893
Preferred stock dividends of subsidiaries	473		473
Net income for common stock	$	64,358	$	33,420
Basic earnings per common share	$	0.59	$	0.31
Diluted earnings per common share	$	0.59	$	0.31
Weighted-average number of common shares outstanding	109,221		109,051
Net effect of potentially dilutive shares	271		314
Weighted-average shares assuming dilution	109,492		109,365

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K.

1

Hawaiian Electric Industries, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (unaudited)

	Three months ended March 31
(in thousands)	2021		2020
Net income for common stock	$	64,358	$	33,420
Other comprehensive income (loss), net of taxes:
Net unrealized gains on available-for-sale investment securities:
Net unrealized gains on available-for-sale investment securities arising during the period, net of taxes of $(16,616) and $7,120, respectively	(45,390)		19,448
Reclassification adjustment for net realized gains included in net income, net of taxes of $(142) and nil, respectively	(387)		—
Derivatives qualifying as cash flow hedges:
Unrealized interest rate hedging losses arising during the period, net of taxes of $542 and $(619), respectively	1,562		(1,784)
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes of $2,084 and $1,986, respectively	6,010		5,706
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $(2,015) and $(1,789), respectively	(5,811)		(5,158)
Other comprehensive income (loss), net of taxes	(44,016)		18,212
Comprehensive income attributable to Hawaiian Electric Industries, Inc.	$	20,342	$	51,632

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K.

2

Hawaiian Electric Industries, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited) 

(dollars in thousands)	March 31, 2021		December 31, 2020
Assets
Cash and cash equivalents	$	277,579	$	341,421
Restricted cash	14,067		17,558
Accounts receivable and unbilled revenues, net	273,197		281,216
Available-for-sale investment securities, at fair value	2,305,257		1,970,417
Held-to-maturity investment securities, at amortized cost	295,046		226,947
Stock in Federal Home Loan Bank, at cost	10,000		8,680
Loans held for investment, net	5,218,288		5,232,642
Loans held for sale, at lower of cost or fair value	23,637		28,275
Property, plant and equipment, net of accumulated depreciation of $2,947,647 and $2,903,144 at March 31, 2021 and December 31, 2020, respectively	5,283,768		5,265,735
Operating lease right-of-use assets	162,713		153,069
Regulatory assets	773,426		766,708
Other	639,505		629,149
Goodwill	82,190		82,190
Total assets	$	15,358,673	$	15,004,007
Liabilities and shareholders’ equity
Liabilities
Accounts payable	$	164,936	$	182,347
Interest and dividends payable	32,405		23,547
Deposit liabilities	7,745,294		7,386,957
Short-term borrowings—other than bank	100,242		129,379
Other bank borrowings	102,685		89,670
Long-term debt, net—other than bank	2,229,738		2,119,129
Deferred income taxes	380,365		395,089
Operating lease liabilities	175,334		160,432
Regulatory liabilities	956,139		959,786
Defined benefit pension and other postretirement benefit plans liability	558,191		567,438
Other	557,758		618,438
Total liabilities	13,003,087		12,632,212
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: 109,281,493 shares and 109,181,124 shares at March 31, 2021 and December 31, 2020, respectively	1,678,973		1,678,368
Retained earnings	687,600		660,398
Accumulated other comprehensive loss, net of tax benefits	(45,280)		(1,264)
Total shareholders’ equity	2,321,293		2,337,502
Total liabilities and shareholders’ equity	$	15,358,673	$	15,004,007

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K.

3

Hawaiian Electric Industries, Inc. and Subsidiaries

Condensed Consolidated Statements of Changes in Shareholders’ Equity (unaudited) 

	Common stock			Retained		Accumulated other comprehensive
(in thousands)	Shares	Amount		Earnings		income (loss)		Total
Balance, December 31, 2020	109,181	$	1,678,368	$	660,398	$	(1,264)	$	2,337,502
Net income for common stock	—	—		64,358		—		64,358
Other comprehensive income, net of taxes	—	—		—		(44,016)		(44,016)
Share-based expenses and other, net	100	605		—		—		605
Common stock dividends (34¢ per share)	—	—		(37,156)		—		(37,156)
Balance, March 31, 2021	109,281	$	1,678,973	$	687,600	$	(45,280)	$	2,321,293
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	—	—		33,420		—		33,420
Other comprehensive income, net of taxes	—	—		—		18,212		18,212
Share-based expenses and other, net	172	(3,996)		—		—		(3,996)
Common stock dividends (33¢ per share)	—	—		(36,019)		—		(36,019)
Balance, March 31, 2020	109,145	$	1,674,261	$	604,071	$	(1,827)	$	2,276,505

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K.

4

Hawaiian Electric Industries, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (unaudited)

	Three months ended March 31
(in thousands)	2021		2020
Cash flows from operating activities
Net income	$	64,831	$	33,893
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property, plant and equipment	61,427		59,614
Other amortization	10,951		11,418
Provision for credit losses	(8,435)		10,401
Loans originated, held for sale	(162,901)		(76,770)
Proceeds from sale of loans, held for sale	170,862		72,533
Gain on sale of investment securities, net	(528)		—
Gain on sale of loans	(4,300)		(2,000)
Deferred income taxes	(2,196)		(4,996)
Share-based compensation expense	2,602		1,704
Allowance for equity funds used during construction	(2,191)		(2,015)
Other	(3,519)		224
Changes in assets and liabilities
Decrease (increase) in accounts receivable and unbilled revenues, net	5,664		(6,563)
Decrease (increase) in fuel oil stock	(16,400)		2,566
Decrease (increase) in regulatory assets	(14,869)		1,171
Increase (decrease) in regulatory liabilities	(4,716)		16,586
Increase in accounts, interest and dividends payable	7,677		8,935
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes	(25,513)		(45,205)
Decrease in defined benefit pension and other postretirement benefit plans liability	(2,621)		(490)
Change in other assets and liabilities	(34,095)		(19,713)
Net cash provided by operating activities	41,730		61,293
Cash flows from investing activities
Available-for-sale investment securities purchased	(781,992)		(159,173)
Principal repayments on available-for-sale investment securities	184,755		77,642
Proceeds from sale of available-for-sale investment securities	197,354		—
Principal repayments of held-to-maturity investment securities	20,185		4,851
Purchases of held-to-maturity investment securities	(88,262)		—
Purchase of stock from Federal Home Loan Bank	(22,296)		(20,766)
Redemption of stock from Federal Home Loan Bank	20,976		19,440
Net increase in loans held for investment	23,922		(65,544)
Proceeds from sale of low-income housing investments	—		6,725
Capital expenditures	(74,079)		(125,554)
Contributions to low income housing investments	(3,205)		(1,026)
Other	4,622		2,942
Net cash used in investing activities	(518,020)		(260,463)
Cash flows from financing activities
Net increase in deposit liabilities	358,337		111,881
Net increase (decrease) in short-term borrowings with original maturities of three months or less	35,751		(135,710)
Net increase in other bank borrowings with original maturities of three months or less	13,015		42,495
Proceeds from issuance of short-term debt	—		50,000
Repayment of short-term debt	(65,000)		—
Proceeds from issuance of long-term debt	161,800		186,925
Repayment of long-term debt	(50,699)		(909)
Withheld shares for employee taxes on vested share-based compensation	(1,997)		(5,700)
Common stock dividends	(37,156)		(36,018)
Preferred stock dividends of subsidiaries	(473)		(473)
Other	(4,621)		(4,590)
Net cash provided by financing activities	408,957		207,901
Net increase (decrease) in cash, cash equivalents and restricted cash	(67,333)		8,731
Cash, cash equivalents and restricted cash, beginning of period	358,979		227,685
Cash, cash equivalents and restricted cash, end of period	291,646		236,416
Less: Restricted cash	(14,067)		(30,902)
Cash and cash equivalents, end of period	$	277,579	$	205,514

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K.

5

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidated Statements of Income (unaudited)

	Three months ended March 31
(in thousands)	2021		2020
Revenues	$	564,864	$	597,442
Expenses
Fuel oil	127,427		173,221
Purchased power	142,296		139,816
Other operation and maintenance	114,570		127,547
Depreciation	57,355		55,850
Taxes, other than income taxes	54,102		57,050
Total expenses	495,750		553,484
Operating income	69,114		43,958
Allowance for equity funds used during construction	2,191		2,015
Retirement defined benefits credit (expense)—other than service costs	1,021		(381)
Interest expense and other charges, net	(17,983)		(16,594)
Allowance for borrowed funds used during construction	747		688
Income before income taxes	55,090		29,686
Income taxes	11,233		5,282
Net income	43,857		24,404
Preferred stock dividends of subsidiaries	229		229
Net income attributable to Hawaiian Electric	43,628		24,175
Preferred stock dividends of Hawaiian Electric	270		270
Net income for common stock	$	43,358	$	23,905

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K.

HEI owns all of the common stock of Hawaiian Electric. Therefore, per share data with respect to shares of common stock of Hawaiian Electric are not meaningful.

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (unaudited)

	Three months ended March 31
(in thousands)	2021		2020
Net income for common stock	$	43,358	$	23,905
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes of $2,027 and $1,798, respectively	5,845		5,184
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $(2,015) and $(1,789), respectively	(5,811)		(5,158)
Other comprehensive income, net of taxes	34		26
Comprehensive income attributable to Hawaiian Electric Company, Inc.	$	43,392	$	23,931

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K.

6

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited)

(dollars in thousands, except par value)	March 31, 2021		December 31, 2020
Assets
Property, plant and equipment
Utility property, plant and equipment
Land	$	51,611	$	51,611
Plant and equipment	7,551,879		7,509,343
Less accumulated depreciation	(2,859,719)		(2,819,079)
Construction in progress	203,988		188,342
Utility property, plant and equipment, net	4,947,759		4,930,217
Nonutility property, plant and equipment, less accumulated depreciation of $116 and $115 as of March 31, 2021 and December 31, 2020, respectively	6,952		6,953
Total property, plant and equipment, net	4,954,711		4,937,170
Current assets
Cash and cash equivalents	51,743		47,360
Restricted cash	11,506		15,966
Customer accounts receivable, net	141,649		147,832
Accrued unbilled revenues, net	101,813		101,036
Other accounts receivable, net	5,073		7,673
Fuel oil stock, at average cost	74,688		58,238
Materials and supplies, at average cost	69,726		67,344
Prepayments and other	36,419		44,083
Regulatory assets	54,322		30,435
Total current assets	546,939		519,967
Other long-term assets
Operating lease right-of-use assets	138,534		127,654
Regulatory assets	719,104		736,273
Other	135,620		136,309
Total other long-term assets	993,258		1,000,236
Total assets	$	6,494,908	$	6,457,373
Capitalization and liabilities
Capitalization
Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 17,324,376 shares at March 31, 2021 and December 31, 2020)	$	115,515	$	115,515
Premium on capital stock	746,987		746,987
Retained earnings	1,297,768		1,282,335
Accumulated other comprehensive loss, net of tax benefits-retirement benefit plans	(2,885)		(2,919)
Common stock equity	2,157,385		2,141,918
Cumulative preferred stock — not subject to mandatory redemption	34,293		34,293
Long-term debt, net	1,675,863		1,561,302
Total capitalization	3,867,541		3,737,513
Commitments and contingencies (Note 3)
Current liabilities
Current portion of operating lease liabilities	66,301		64,730
Short-term borrowings from non-affiliates	—		49,979
Accounts payable	123,199		133,849
Interest and preferred dividends payable	28,172		20,350
Taxes accrued, including revenue taxes	155,125		192,524
Regulatory liabilities	30,370		37,301
Other	70,000		74,262
Total current liabilities	473,167		572,995
Deferred credits and other liabilities
Operating lease liabilities	84,102		69,494
Deferred income taxes	396,758		397,798
Regulatory liabilities	925,769		922,485
Unamortized tax credits	110,181		111,915
Defined benefit pension and other postretirement benefit plans liability	522,286		530,532
Other	115,104		114,641
Total deferred credits and other liabilities	2,154,200		2,146,865
Total capitalization and liabilities	$	6,494,908	$	6,457,373

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K.

7

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidated Statements of Changes in Common Stock Equity (unaudited)

	Common stock			Premium on capital		Retained		Accumulated other comprehensive
(in thousands)	Shares	Amount		stock		earnings		income (loss)		Total
Balance, December 31, 2020	17,324	$	115,515	$	746,987	$	1,282,335	$	(2,919)	$	2,141,918
Net income for common stock	—	—		—		43,358		—		43,358
Other comprehensive income, net of taxes	—	—		—		—		34		34
Common stock dividends	—	—		—		(27,925)		—		(27,925)
Balance, March 31, 2021	17,324	$	115,515	$	746,987	$	1,297,768	$	(2,885)	$	2,157,385
Balance, December 31, 2019	17,048	$	113,678	$	714,824	$	1,220,129	$	(1,279)	$	2,047,352
Net income for common stock	—	—		—		23,905		—		23,905
Other comprehensive income, net of taxes	—	—		—		—		26		26
Common stock dividends	—	—		—		(26,784)		—		(26,784)
Balance, March 31, 2020	17,048	$	113,678	$	714,824	$	1,217,250	$	(1,253)	$	2,044,499

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K.

8

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (unaudited)

	Three months ended March 31
(in thousands)	2021		2020
Cash flows from operating activities
Net income	$	43,857	$	24,404
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property, plant and equipment	57,355		55,850
Other amortization	6,577		7,704
Deferred income taxes	(4,671)		(3,762)
State refundable credit	(2,662)		(2,530)
Bad debt expense	457		2,724
Allowance for equity funds used during construction	(2,191)		(2,015)
Other	(1)		20
Changes in assets and liabilities
Decrease (increase) in accounts receivable	6,078		(9,020)
Decrease (increase) in accrued unbilled revenues	(427)		2,704
Decrease (increase) in fuel oil stock	(16,450)		2,410
Increase in materials and supplies	(2,382)		(496)
Decrease (increase) in regulatory assets	(14,869)		1,171
Increase (decrease) in regulatory liabilities	(4,716)		16,586
Increase (decrease) in accounts payable	6,254		(7,153)
Change in prepaid and accrued income taxes, tax credits and revenue taxes	(24,802)		(43,919)
Decrease in defined benefit pension and other postretirement benefit plans liability	(1,434)		(1,017)
Change in other assets and liabilities	(14,012)		(4,520)
Net cash provided by operating activities	31,961		39,141
Cash flows from investing activities
Capital expenditures	(70,361)		(119,144)
Other	1,863		2,713
Net cash used in investing activities	(68,498)		(116,431)
Cash flows from financing activities
Common stock dividends	(27,925)		(26,784)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(499)		(499)
Proceeds from issuance of short-term debt	—		50,000
Repayment of short-term debt	(50,000)		—
Proceeds from issuance of long-term debt	115,000		95,000
Net decrease in short-term borrowings from non-affiliates and affiliates with original maturities of three months or less	—		(38,987)
Other	(116)		(23)
Net cash provided by financing activities	36,460		78,707
Net increase (decrease) in cash and cash equivalents	(77)		1,417
Cash, cash equivalents and restricted cash, beginning of period	63,326		41,894
Cash, cash equivalents and restricted cash, end of period	63,249		43,311
Less: Restricted cash	(11,506)		(30,902)
Cash and cash equivalents, end of period	$	51,743	$	12,409

This report should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K.

9

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 1 · Basis of presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information, the instructions to SEC Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the unaudited condensed consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. The accompanying unaudited condensed consolidated financial statements and the following notes should be read in conjunction with the audited consolidated financial statements and the notes thereto in HEI’s and Hawaiian Electric’s Form 10-K for the year ended December 31, 2020.

In the opinion of HEI’s and Hawaiian Electric’s management, the accompanying unaudited condensed consolidated financial statements contain all material adjustments required by GAAP to fairly state consolidated HEI’s and Hawaiian Electric’s financial positions as of March 31, 2021 and December 31, 2020 and the results of their operations and cash flows for the three months ended March 31, 2021 and 2020. All such adjustments are of a normal recurring nature, unless otherwise disclosed below or in other referenced material. Results of operations for interim periods are not necessarily indicative of results for the full year.

Recent accounting pronouncements.

Income Taxes. In December 2019, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which removes specific exceptions to the general principles in Topic 740, improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP under certain situations. ASU 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company adopted the ASU as of January 1, 2021 with no material impact on its consolidated financial statements and related disclosures.

10

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Note 2 · Segment financial information

(in thousands)	Electric utility		Bank		Other		Total
Three months ended March 31, 2021
Revenues from external customers	$	564,855	$	77,131	$	960	$	642,946
Intersegment revenues (eliminations)	9		—		(9)		—
Revenues	$	564,864	$	77,131	$	951	$	642,946
Income (loss) before income taxes	$	55,090	$	37,102	$	(11,996)	$	80,196
Income taxes (benefit)	11,233		7,546		(3,414)		15,365
Net income (loss)	43,857		29,556		(8,582)		64,831
Preferred stock dividends of subsidiaries	499		—		(26)		473
Net income (loss) for common stock	$	43,358	$	29,556	$	(8,556)	$	64,358
Total assets (at March 31, 2021)	$	6,494,908	$	8,718,024	$	145,741	$	15,358,673
Three months ended March 31, 2020
Revenues from external customers	$	597,430	$	79,738	$	18	$	677,186
Intersegment revenues (eliminations)	12		—		(12)		—
Revenues	$	597,442	$	79,738	$	6	$	677,186
Income (loss) before income taxes	$	29,686	$	18,969	$	(8,959)	$	39,696
Income taxes (benefit)	5,282		3,208		(2,687)		5,803
Net income (loss)	24,404		15,761		(6,272)		33,893
Preferred stock dividends of subsidiaries	499		—		(26)		473
Net income (loss) for common stock	$	23,905	$	15,761	$	(6,246)	$	33,420
Total assets (at December 31, 2020)	$	6,457,373	$	8,396,533	$	150,101	$	15,004,007

Intercompany electricity sales of the Utilities to ASB and “other” segments are not eliminated because those segments would need to purchase electricity from another source if it were not provided by the Utilities and the profit on such sales is nominal.

Hamakua Energy, LLC’s (Hamakua Energy’s) sales to Hawaii Electric Light (a regulated affiliate) are eliminated in consolidation.

11

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Note 3 · Electric utility segment

Unconsolidated variable interest entities.

Power purchase agreements.  As of March 31, 2021, the Utilities had five PPAs for firm capacity (including the Puna Geothermal Venture (PGV) PPA as PGV went offline in May 2018 due to lava flow on Hawaii Island, but returned to service with firm capacity of 13 MW in the first quarter of 2021) and other PPAs with independent power producers (IPPs) and Schedule Q providers (i.e., customers with cogeneration and/or power production facilities who buy power from or sell power to the Utilities), none of which are currently required to be consolidated as VIEs.

Pursuant to the current accounting standards for VIEs, the Utilities are deemed to have a variable interest in Kalaeloa Partners, L.P. (Kalaeloa), AES Hawaii, Inc. (AES Hawaii) and Hamakua Energy by reason of the provisions of the PPA that the Utilities have with the three IPPs. However, management has concluded that the Utilities are not the primary beneficiary of Kalaeloa, AES Hawaii and Hamakua Energy because the Utilities do not have the power to direct the activities that most significantly impact the three IPPs’ economic performance nor the obligation to absorb their expected losses, if any, that could potentially be significant to the IPPs. Thus, the Utilities have not consolidated Kalaeloa, AES Hawaii and Hamakua Energy in its condensed consolidated financial statements. Hamakua Energy is an indirect subsidiary of Pacific Current and is consolidated in HEI’s condensed consolidated financial statements.

For the other PPAs with IPPs, the Utilities have concluded that the consolidation of the IPPs was not required because either the Utilities do not have variable interests in the IPPs due to the absence of an obligation in the PPAs for the Utilities to absorb any variability of the IPPs, or the IPP was considered a “governmental organization,” and thus excluded from the scope of accounting standards for VIEs. The consolidation of any significant IPP could have a material effect on the unaudited condensed consolidated financial statements, including the recognition of a significant amount of assets and liabilities and, if such a consolidated IPP were operating at a loss and had insufficient equity, the potential recognition of such losses. If the Utilities determine they are required to consolidate the financial statements of such an IPP and the consolidation has a material effect, the Utilities would retrospectively apply accounting standards for VIEs to the IPP.

Commitments and contingencies.

Contingencies. The Utilities are subject in the normal course of business to pending and threatened legal proceedings. Management does not anticipate that the aggregate ultimate liability arising out of these pending or threatened legal proceedings will be material to its financial position. However, the Utilities cannot rule out the possibility that such outcomes could have a material effect on the results of operations or liquidity for a particular reporting period in the future.

Power purchase agreements.  Purchases from all IPPs were as follows:

	Three months ended March 31
(in millions)	2021		2020
Kalaeloa	$	37	$	38
AES Hawaii	30		31
HPOWER	17		17
Hamakua Energy	11		13
Puna Geothermal Venture	4		—
Wind IPPs	29		28
Solar IPPs	12		11
Other IPPs 1	2		2
Total IPPs	$	142	$	140

1Includes hydro power and other PPAs

Kalaeloa Partners, L.P.  Under a 1988 PPA, as amended, Hawaiian Electric is committed to purchase 208 MW of firm capacity from Kalaeloa. Hawaiian Electric and Kalaeloa continue negotiations to address the PPA term that ended on May 23, 2016. The PPA automatically extends on a month-to-month basis as long as the parties are still negotiating in good faith. Hawaiian Electric and Kalaeloa have agreed that neither party will terminate the PPA (which has been subject to automatic extension on a month-to-month basis) prior to May 31, 2021, to allow for a negotiated resolution.

AES Hawaii, Inc. Under a PPA entered into in March 1988, as amended (through Amendment No. 2) for a period of 30 years ending September 2022, Hawaiian Electric agreed to purchase 180 MW of firm capacity from AES Hawaii. Hawaiian

12

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Electric and AES Hawaii have been in dispute over an additional 9 MW of capacity. In February 2018, Hawaiian Electric reached agreement with AES Hawaii on an amendment to the PPA. However, in June 2018, the PUC issued an order suspending review of the amendment pending a Department of Health of the State of Hawaii (DOH) decision on AES Hawaii’s request for approval of its Emission Reduction Plan and partnership with Hawaiian Electric. If approved by the PUC, the amendment will resolve AES Hawaii’s claims related to the additional capacity.

Hu Honua Bioenergy, LLC (Hu Honua). In May 2012, Hawaii Electric Light signed a PPA, which the PUC approved in December 2013, with Hu Honua for 21.5 MW of renewable, dispatchable firm capacity fueled by locally grown biomass from a facility on the island of Hawaii. Under the terms of the PPA, the Hu Honua plant was scheduled to be in service in 2016. However, Hu Honua encountered construction and litigation delays, which resulted in an amended and restated PPA between Hawaii Electric Light and Hu Honua dated May 9, 2017. In July 2017, the PUC approved the amended and restated PPA, which becomes effective once the PUC’s order is final and non-appealable. In August 2017, the PUC’s approval was appealed by a third party. On May 10, 2019, the Hawaii Supreme Court issued a decision remanding the matter to the PUC for further proceedings consistent with the court’s decision which must include express consideration of greenhouse gas (GHG) emissions that would result from approving the PPA, whether the cost of energy under the PPA is reasonable in light of the potential for GHG emissions, and whether the terms of the PPA are prudent and in the public interest, in light of its potential hidden and long-term consequences. On June 20, 2019, the PUC issued an order reopening the docket for further proceedings, including re-examining all of the issues in the proceedings. On September 29, 2019, the PUC issued an order setting the procedural schedule for the matter and on December 20, 2019, issued an order modifying the procedural schedule. Pre-hearing matters were completed on March 6, 2020. On July 9, 2020, the PUC issued an order denying Hawaii Electric Light’s request to waive the amended and restated PPA from the PUC’s competitive bidding requirements and therefore, dismissed the request for approval of the amended and restated PPA without prejudice to possible participation in any future competitive bidding process. On July 20, 2020, Hu Honua filed a motion for reconsideration of the PUC’s order which was denied by the PUC on September 9, 2020. On September 16, 2020, Hu Honua filed its notice of appeal to the Hawaii Supreme Court of the PUC’s order denying Hu Honua’s motion for reconsideration. Oral arguments were held before the Supreme Court on April 22, 2021.

Molokai New Energy Partners (MNEP). In July 2018, the PUC approved Maui Electric’s PPA with MNEP to purchase solar energy from a photovoltaic (PV) plus battery storage project. The 4.88 MW PV and 3 MW Battery Energy Storage System project was to deliver no more than 2.64 MW at any time to the Molokai system. On March 25, 2020, MNEP filed a complaint in the United Stated District Court for the District of Hawaii against Maui Electric claiming breach of contract. On June 3, 2020, Maui Electric provided Notice of Default and Termination of the PPA to MNEP terminating the PPA with an effective date of July 10, 2020. Thereafter, MNEP filed an amended Complaint to include claims relating to the termination and Hawaiian Electric filed its Answer to the Amended Complaint on September 11, 2020, disputing the facts presented by MNEP and all claims within the original and amended complaint.

Utility projects.  Many public utility projects require PUC approval and various permits from other governmental agencies. Difficulties in obtaining, or the inability to obtain, the necessary approvals or permits or community support can result in significantly increased project costs or even cancellation of projects. In the event a project does not proceed, or if it becomes probable the PUC will disallow cost recovery for all or part of a project, or if PUC-imposed caps on project costs are expected to be exceeded, project costs may need to be written off in amounts that could result in significant reductions in Hawaiian Electric’s consolidated net income.

Enterprise Resource Planning/Enterprise Asset Management (ERP/EAM) implementation project. The ERP/EAM Implementation Project went live in October 2018. Hawaii Electric Light and Hawaiian Electric began to incorporate their portion of the deferred project costs in rate base and started the amortization over a 12-year period in January 2020 and November 2020, respectively. The PUC required the benefit savings of the project to be passed on to customers.

In February 2019, the PUC approved a methodology for passing the future cost saving benefits of the new ERP/EAM system to customers developed by the Utilities in collaboration with the Consumer Advocate. The Utilities filed a benefits clarification document on June 10, 2019, reflecting $150 million in future net O&M expense reductions and cost avoidance, and $96 million in capital cost reductions and tax savings over the 12-year service life. To the extent the reduction in O&M expense relates to amounts reflected in electric rates, the Utilities would reduce future rates for such amounts. In October 2019, the PUC approved the Utilities and the Consumer Advocate’s Stipulated Performance Metrics and Tracking Mechanism. As of March 31, 2021, the Utilities’ regulatory liability was $11.2 million ($6.5 million for Hawaiian Electric, $1.9 million for Hawaii Electric Light and $2.8 million for Maui Electric) for the O&M expense savings that are being amortized or to be included in future rates. As part of the settlement agreement approved in the Hawaiian Electric 2020 test year rate case, the regulatory liability for Hawaiian Electric will be amortized over five years, beginning in November 2020, and the O&M benefits for Hawaiian Electric will be considered flowed through to customers. As part of the PBR proceeding, the regulatory liability as of

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December 31, 2020 of approximately $1.6 million and $2.3 million, respectively, for Hawaii Electric Light and Maui Electric will be flowed to customers as part of the customer dividend in the annual revenue adjustment in 2021.

At the PUC’s direction, the Utilities have been filing Semi-Annual Enterprise System Benefits (SAESB) reports on the achieved benefits savings. The most recent SAESB report was filed on February 26, 2021 for the period July 1 through December 31, 2020.

Environmental regulation.  The Utilities are subject to environmental laws and regulations that regulate the operation of existing facilities, the construction and operation of new facilities and the proper cleanup and disposal of hazardous waste and toxic substances.

Hawaiian Electric, Hawaii Electric Light and Maui Electric, like other utilities, periodically encounter petroleum or other chemical releases associated with current or previous operations. The Utilities report and take action on these releases when and as required by applicable law and regulations. The Utilities believe the costs of responding to such releases identified to date will not have a material effect, individually or in the aggregate, on Hawaiian Electric’s consolidated results of operations, financial condition or liquidity.

Former Molokai Electric Company generation site.  In 1989, Maui Electric acquired Molokai Electric Company. Molokai Electric Company had sold its former generation site (Site) in 1983, but continued to operate at the Site under a lease until 1985. The federal Environmental Protection Agency (EPA) has since identified environmental impacts in the subsurface soil at the Site. In cooperation with the DOH and EPA, Maui Electric further investigated the Site and the Adjacent Parcel to determine the extent of impacts of polychlorinated biphenyls (PCBs), residual fuel oils and other subsurface contaminants. Maui Electric has a reserve balance of $2.7 million as of March 31, 2021, representing the probable and reasonably estimable undiscounted cost for remediation of the Site and the Adjacent Parcel; however, final costs of remediation will depend on the cleanup approach implemented.

Pearl Harbor sediment study. In July 2014, the U.S. Navy notified Hawaiian Electric of the Navy’s determination that Hawaiian Electric is a Potentially Responsible Party responsible for the costs of investigation and cleanup of PCBs contamination in sediment in the area offshore of the Waiau Power Plant as part of the Pearl Harbor Superfund Site. Hawaiian Electric was also required by the EPA to assess potential sources and extent of PCB contamination onshore at Waiau Power Plant.

As of March 31, 2021, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $9.8 million. The reserve balance represents the probable and reasonably estimable undiscounted cost for the onshore and offshore investigation and remediation. The final remediation costs will depend on the actual onshore and offshore cleanup costs.

Regulatory proceedings

Current decoupling. Decoupling is a regulatory model that is intended to provide the Utilities with financial stability and facilitate meeting the State of Hawaii’s goals to transition to a clean energy economy and achieve an aggressive renewable portfolio standard. The current decoupling mechanism has the following major components: (1) monthly revenue balancing account (RBA) revenues or refunds for the difference between PUC-approved target revenues and recorded adjusted revenues, which delinks revenues from kWh sales, (2) rate adjustment mechanism (RAM) revenues for escalation in certain O&M expenses and rate base changes, (3) major project interim recovery (MPIR) component, (4) performance incentive mechanisms (PIMs), and (5) an earnings sharing mechanism, which would provide for a reduction of revenues between rate cases in the event the utility exceeds the return on average common equity (ROACE) allowed in its most recent rate case.

Performance-based regulation framework. On December 23, 2020, the PUC issued a D&O (PBR D&O) approving a new performance-based regulation framework (PBR Framework). Under the PBR Framework, the Utilities’ current decoupling will continue to be used with modifications, as described below. The existing cost recovery mechanisms will continue as currently implemented (e.g., the Energy Cost Recovery Clause (ECRC), Purchased Power Adjustment Clause (PPAC), Demand Side Management surcharge (DSM), Renewable Energy Infrastructure Program (REIP), Demand Response Adjustment Clause (DRAC), Pension and Other Post-Employment Benefits (OPEB) tracking mechanisms). In addition to annual revenues provided by the annual revenue adjustment (ARA), the Utilities may seek relief for extraordinary projects or programs through the Exceptional Project Recovery Mechanism (EPRM) (formerly known as the Major Project Interim Recovery (MPIR) adjustment mechanism) and earn financial rewards for exemplary performance as provided through a portfolio of Performance Incentive Mechanisms (PIMs) and Shared Savings Mechanisms (SSMs). The PBR Framework will incorporate a variety of other performance mechanisms, including Scorecards, Reported Metrics, and an expedited Pilot Process. The PBR Framework also contains a number of safeguards, including a symmetric Earnings Sharing Mechanism (ESM) which protects the Utilities and customers from excessive earnings or losses, as measured by the Utilities’ Return on Equity (ROE) and a Re-Opener

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mechanism, under which the PUC will open an examination, at its discretion, to determine if adjustments or modifications to specific PBR mechanisms are appropriate.

Subsequent to the issuance of the PBR D&O, the PUC has initiated a collaborative process during which working groups consisting of the PUC, the Utilities and other parties have addressed the development of the proposed PBR implementation tariffs and the final details of the Prioritized Performance Mechanisms (i.e., Interconnection Approval PIM, Low-to-Moderate Income (LMI) Energy Efficiency PIM, Advanced Metering Infrastructure (AMI) Utilization PIM and the portfolio of Scorecards and Reported Metrics). The Utilities and other parties filed their refined proposals addressing the Prioritized Performance Mechanisms on March 16, 2021 and April 9, 2021. An order addressing the Prioritized Performance Mechanisms is expected to be issued in May 2021. Written tariffs to implement the PBR Framework have been either approved (see below) or will be submitted for PUC approval in May 2021 and expected to go into effect June 1, 2021.

Rate adjustment mechanism. The existing RAM is based on the lesser of: a) an inflationary adjustment for certain O&M expenses and return on investment for certain rate base changes, or b) cumulative annual compounded increase in Gross Domestic Product Price Index applied to annualized target revenues (the RAM Cap). Annualized target revenues may be reset upon the issuance of an interim or final decision and order (D&O) in a rate case. All Utilities were limited to the RAM Cap in 2020. Under the new PBR Framework, the ARA mechanism will replace the RAM, effective on June 1, 2021. The transition to the new ARA includes the continuation of the 2020 RAM Revenue adjustment.

Annual revenue adjustment mechanism. The PBR Framework established a five-year multi-year rate period during which there will be no general rate cases. Target revenues will be adjusted according to an index-driven ARA based on (i) an inflation factor, (ii) a predetermined X-factor to encompass productivity, which is set at zero, (iii) a Z-factor to account for exceptional circumstances not in the Utilities’ control and (iv) a customer dividend consisting of a negative adjustment of 0.22% compounded annually and a flow through of the “pre-PBR” savings commitment from the management audit recommendations developed in a prior docket.

As a result of an Order issued by the PUC pursuant to a motion for partial reconsideration the customer dividend for “pre-PBR” savings commitment portion to be delivered to customers will be at a rate of $6.6 million per year from 2021 to 2025, and the Enterprise Resource Planning system benefits savings of $3.9 million, to be delivered to customers in 2021. The implementation of the ARA is scheduled to occur on June 1, 2021.

Earnings sharing mechanism. A symmetrical ESM for actual return on equity outside of a 300 basis points dead band above and below a target ROE of 9.5%, which is the current authorized ROE for the Utilities. There is a 50/50 sharing between customers and Utilities for the actual earnings falling within 150 basis points outside of the dead band in either direction, and a 90/10 sharing for any further difference. A reopening or review of the PBR terms will be triggered if the Utilities credit rating outlook indicates a potential credit downgrade below investment grade status, or if its earned ROE enters the outer most tier of the ESM.

Major project interim recovery. On April 27, 2017, the PUC issued an order that provided guidelines for interim recovery of revenues to support major projects placed in service between general rate cases.

Projects eligible for recovery through the MPIR adjustment mechanism are major projects (i.e., projects with capital expenditures net of customer contributions in excess of $2.5 million), including, but not restricted to, renewable energy, energy efficiency, utility scale generation, grid modernization and smaller qualifying projects grouped into programs for review. The MPIR adjustment mechanism provides the opportunity to recover revenues for approved costs of eligible projects placed in service between general rate cases wherein cost recovery is limited by a revenue cap and is not provided by other effective recovery mechanisms. The request for PUC approval must include a business case, and all costs that are allowed to be recovered through the MPIR adjustment mechanism must be offset by any related benefits. The guidelines provide for accrual of revenues approved for recovery upon in-service date to be collected from customers through the annual RBA tariff. Capital projects that are not recovered through the MPIR would be included in the RAM and be subject to the RAM Cap, until the next rate case when the Utilities would request recovery in base rates.

On March 31, 2021, the Utilities submitted 2021 MPIR amounts totaling $21.8 million for the Schofield Generating Station ($17.6 million), West Loch PV Project ($3.3 million), and Grid Modernization Strategy Phase 1 project ($0.9 million for all three utilities) for the accrual of revenues effective January 1, 2021, that included the 2021 return on project amount (based on approved amounts) in rate base, depreciation and incremental O&M expenses. Subject to PUC approval, as part of the transition to the PBR framework, the Utilities will begin recovery of the annualized 2021 MPIR amounts effective June 1, 2021 through the RBA rate adjustment.

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Exceptional project recovery mechanism. The existing MPIR adjustment mechanism was renamed EPRM to include deferred and O&M expense projects and to permit the Utilities to include the full amount of approved costs in the EPRM for recovery in the first year the project goes into service, pro-rated for the portion of the year the project is in service. Any pending application for MPIR relief submitted by the Utilities prior to the PBR D&O, will be grandfathered under the MPIR Guidelines. The Utilities may alternatively request that pending MPIR applications be reviewed under EPRM Guidelines. EPRM recovery will be in accordance with the EPRM Guidelines limited to the lesser of actual incurred project costs or PUC- approved amounts, net of savings. To date, the Utilities have requested approval of four projects with total estimated capital costs of $95 million for recovery through EPRM.

Performance incentive mechanisms. The PUC has established the following PIMs: (1) Service Quality performance incentives, (2) Phase 1 Request for proposal (RFP) PIM for procurement of low-cost renewable energy, (3) Phase 2 RFP PIMs for generation and generation plus storage project, and Grid Services and standalone storage.

•Service Quality performance incentives (ongoing). Service Quality performance incentives are measured on a calendar-year basis. The PIM tariff requires the performance targets, deadbands and the amount of maximum financial incentives used to determine the PIM financial incentive levels for each of the PIMs to be re-determined upon issuance of an interim or final order in a general rate case for each utility.

•Service Reliability Performance measured by System Average Interruption Duration and Frequency Indexes (penalties only). Target performance is based on each utility’s historical 10-year average performance with a deadband of one standard deviation. The maximum penalty for each performance index is 20 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties of approximately $6.8 million - for both indices in total for the three utilities).

•Call Center Performance measured by the percentage of calls answered within 30 seconds. Target performance is based on the annual average performance for each utility for the most recent 8 quarters with a deadband of 3% above and below the target. The maximum penalty or reward is 8 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties or rewards of approximately $1.4 million - in total for the three utilities).

In December 2020, the Utilities accrued $0.9 million in estimated rewards for call center performance, net of service reliability penalties, for 2020. The net service quality performance rewards related to 2020 was reflected in the 2021 annual decoupling filing and pending PUC’s approval, will increase customer rates effective June 1, 2021.

•Phase 1 RFP PIM. Procurement of low-cost variable renewable resources through the request for proposal process in 2018 is measured by comparison of the procurement price to target prices. Half of the incentive was earned upon PUC approval of the PPAs. Based on the seven PPAs approved in 2019, the Utilities recognized $1.7 million in 2019 with the remaining award to be recognized in the year following the in-service date of the projects, which is estimated to occur from 2023 to 2024.

•Phase 2 RFP PIMs. The PUC order issued on October 9, 2019 establishes pricing thresholds, timelines to complete contracting, and other performance criteria for the performance incentive eligibility. The PIMs provide incentives only without penalties. The order requires contracts under the Grid Service RFP be filed for approval by May 2020 (subsequently extended to July 9, 2020), and by September 2020 under the Renewable RFPs, with a declining PIM for projects that are not filed by these deadlines. On July 9, 2020, the Utilities filed two Grid Service Purchase Agreements for the Grid Service RFP, which qualify for PIMs, however, details of the incentive metrics will be determined by PUC. On September 15, 2020, the Utilities filed eight power purchase agreements for the Phase 2 RFP. Of those eight, only one project qualified for a potential PIM incentive. On February 16, 2021, the Utilities filed one additional power purchase agreement that qualifies for the declining PIM. On December 31, 2020, the PUC approved the two Grid Services Purchase Agreements without further clarification regarding the PIM. The Utility has filed a letter to the PUC in January 2021 to seek guidance to the next step of defining the details of the incentive metrics.

•The PUC established the following two new PIMs in its PBR D&O, which were approved in an order issued on March 23, 2021. The effective date for these PIM tariffs is June 1, 2021.

•Renewable portfolio standard (RPS)-A PIM that provides a financial reward for accelerating the achievement of RPS goals. The Utilities may earn a reward for the amount of system generation above the interpolated statutory RPS goal at $20/MWh in 2021 and 2022, $15/MWh in 2023, and $10/MWh for the remainder of the multi-year rate period (MRP). Penalties are already prescribed in the RPS as $20/MWh for failing to meet RPS targets in 2030, 2040 and 2045. The evaluation period commenced on January 1, 2021.

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•Grid Services Procurement PIM that provides financial rewards for grid services acquired in 2021 and 2022. The Utilities can earn a total maximum reward of $1.5 million over 2021 and 2022. The evaluation period commenced on January 1, 2021.

•The PUC also established the following three new PIMs in its PBR D&O, which are subject to PUC final design approval anticipated by June 1, 2021.

•Interconnection Approval PIM that provides financial rewards and penalties for interconnection times for distributed energy resources systems <100 kW in size. The Utilities can earn a total annual maximum reward of $3.0 million or a total annual maximum penalty of $0.9 million. The evaluation period commenced on January 1, 2021.

•Low-to-Moderate Income (LMI) Energy Efficiency PIM that provides financial rewards for collaboration between the Utilities and the third-party Public Benefits Fee Administrator to deliver energy savings for low- and moderate-income customers. The rewards for the PIM metrics will be collectively capped at $2.0 million. The PIM will initially have a duration of three years and be subject to an annual review. The evaluation period will commence as of the date of the effective tariff.

•Advanced Metering Infrastructure (AMI) Utilization PIM that provides financial rewards for acceleration of the number of customers with advanced meters enabled to support time-varying rates and next generation distributed energy resources programs. The Utilities can earn a total annual maximum reward of $2.0 million. The evaluation period will commence as of the date of the effective tariff.

Annual decoupling filings. The Utilities filed annual decoupling filings on March 31, 2021, which are subject to PUC approval. The net annual incremental amounts proposed to be collected (refunded) from June 1, 2021 through December 31, 2021 are as follows:

(in millions)	Hawaiian Electric		Hawaii Electric Light		Maui Electric		Total
2021 Annual incremental RAM adjusted revenues and ARA revenues	$	(13.8)	$	(2.0)	$	(5.9)	$	(21.7)
Annual change in accrued RBA balance as of December 31, 2020 (and associated revenue taxes)	10.4		5.7		8.9		25.0
Incremental Performance Incentive Mechanisms (net)	—		0.2		0.5		0.7
Incremental MPIR/EPRM Revenue Adjustment	12.6		0.1		0.1		12.8
Incremental Affiliate Transaction Refund/PUC Ordered Adjustment	—		N/A		2.0		2.0
Net annual incremental amount to be collected under the tariffs	$	9.1	$	4.0	$	5.6	$	18.7

Note: Columns may not foot due to rounding.

Most recent rate proceedings.

Hawaiian Electric 2020 test year rate case. On October 22, 2020, the PUC issued a final D&O approving the stipulated settlement agreement filed in the proceeding. As a result, there will be no increase in base electric rates established in the 2017 test year rate case. In the final D&O, the PUC approved the capital structure that consists of a 58% total equity ratio, and a ROACE of 9.5% for the 2020 test year. The resulting return on rate base (RORB) is 7.37%. The D&O approved the agreement to implement the overall lower depreciation rates approved in the last depreciation study proceeding, effective January 1, 2020. See “Annual revenue adjustment mechanism” under “Performance-based regulation framework” above, regarding the PUC’s decision on the treatment of Hawaiian Electric’s Management Audit savings commitment. Hawaiian Electric’s proposed RBA provision tariff and ECRC tariff submitted on November 6, 2020 were approved by the PUC on December 11, 2020 and took effect on January 1, 2021.

Hawaii Electric Light 2019 test year rate case. On July 28, 2020, the PUC issued a final D&O, approving the Stipulated Partial Settlement Letter in part and ordering final rates for the 2019 test year to remain at current effective rates such that there is a zero increase in rates. The PUC determined that an appropriate ROACE for the 2019 test year is 9.5%, approved a capital structure of 58% total equity and approved as fair a 7.52% RORB. In addition, the order, among others, (1) approved a 10-year amortization period for the state investment tax credit; and (2) approved a modification to Hawaii Electric Light’s ECRC to incorporate a 98%/2% risk-sharing split between customers and Hawaii Electric Light with an annual maximum exposure cap of +/- $600,000. The proposed final tariffs and PIM tariffs took effect on November 1, 2020, and the ECRC tariff took effect on January 1, 2021.

Regulatory assets for COVID-19 related costs. On May 4, 2020, the PUC issued an order, authorizing all utilities, including the Utilities, to establish regulatory assets to record costs resulting from the suspension of disconnections of service during the

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pendency of the Governor’s Emergency Proclamation and until otherwise ordered by the PUC. In future proceedings, the PUC will consider the reasonableness of the costs, the appropriate period of recovery, any amount of carrying costs thereon, and any savings directly attributable to suspension of disconnects, and other related matters. As part of the order, the PUC prohibits the Utilities from charging late payment fees on past due payments. On June 30, 2020, the PUC issued an order approving the Utilities’ request made in April 2020 for deferral treatment of COVID-19 related costs through December 31, 2020. On March 8, 2021, the PUC approved the Utilities’ request to extend the deferral period to June 30, 2021. The Utilities are required to file quarterly reports to update the Utilities’ financial condition, report measures in place to assist their customers during the COVID-19 emergency situation, identify the planned deferred costs and details for the deferred costs, and identify funds received or benefits received that have resulted from the COVID-19 emergency period. The recovery of the regulatory assets would be determined in a subsequent proceeding and management believes the deferred costs are probable of recovery. In addition, starting in December 2020 and monthly moving forward until otherwise ordered by the PUC, the Utilities are required to file information on, among other things, number of customers, arrears balances, payment arrangements entered into, and available assistance used to assists customer bill payment. The monthly report is intended to assist the PUC in determining next steps regarding appropriate regulatory measures. As of March 31, 2021, the Utilities recorded a total of $22.2 million in regulatory assets pursuant to the orders.

Condensed consolidating financial information. Condensed consolidating financial information for Hawaiian Electric and its subsidiaries are presented for the three month periods ended March 31, 2021 and 2020, and as of March 31, 2021 and December 31, 2020.

Hawaiian Electric unconditionally guarantees Hawaii Electric Light’s and Maui Electric’s obligations (a) to the State of Hawaii for the repayment of principal and interest on Special Purpose Revenue Bonds issued for the benefit of Hawaii Electric Light and Maui Electric, and (b) under their respective private placement note agreements and the Hawaii Electric Light notes and Maui Electric notes issued thereunder. Hawaiian Electric is also obligated, after the satisfaction of its obligations on its own preferred stock, to make dividend, redemption and liquidation payments on Hawaii Electric Light’s and Maui Electric’s preferred stock if the respective subsidiary is unable to make such payments.

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Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Income

Three months ended March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	400,554	85,149	79,181	—	(20)	$	564,864
Expenses
Fuel oil	88,728		16,485	22,214	—	—	127,427
Purchased power	108,604		21,597	12,095	—	—	142,296
Other operation and maintenance	77,335		17,912	19,323	—	—	114,570
Depreciation	38,914		10,048	8,393	—	—	57,355
Taxes, other than income taxes	38,627		7,993	7,482	—	—	54,102
Total expenses	352,208		74,035	69,507	—	—	495,750
Operating income	48,346		11,114	9,674	—	(20)	69,114
Allowance for equity funds used during construction	1,748		132	311	—	—	2,191
Equity in earnings of subsidiaries	12,510		—	—	—	(12,510)	—
Retirement defined benefits expense—other than service costs	886		168	(33)	—	—	1,021
Interest expense and other charges, net	(12,832)		(2,581)	(2,590)	—	20	(17,983)
Allowance for borrowed funds used during construction	591		44	112	—	—	747
Income before income taxes	51,249		8,877	7,474	—	(12,510)	55,090
Income taxes	7,621		2,051	1,561	—	—	11,233
Net income	43,628		6,826	5,913	—	(12,510)	43,857
Preferred stock dividends of subsidiaries	—		134	95	—	—	229
Net income attributable to Hawaiian Electric	43,628		6,692	5,818	—	(12,510)	43,628
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	43,358	6,692	5,818	—	(12,510)	$	43,358

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Comprehensive Income

Three months ended March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net income for common stock	$	43,358	6,692	5,818	—	(12,510)	$	43,358
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes	5,845		835	761	—	(1,596)	5,845
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(5,811)		(834)	(761)	—	1,595	(5,811)
Other comprehensive income, net of taxes	34		1	—	—	(1)	34
Comprehensive income attributable to common shareholder	$	43,392	6,693	5,818	—	(12,511)	$	43,392

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Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Income

Three months ended March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	421,166	89,293	87,198	—	(215)	$	597,442
Expenses
Fuel oil	120,535		22,432	30,254	—	—	173,221
Purchased power	107,951		19,521	12,344	—	—	139,816
Other operation and maintenance	85,637		19,104	22,806	—	—	127,547
Depreciation	38,011		9,760	8,079	—	—	55,850
Taxes, other than income taxes	40,501		8,342	8,207	—	—	57,050
Total expenses	392,635		79,159	81,690	—	—	553,484
Operating income	28,531		10,134	5,508	—	(215)	43,958
Allowance for equity funds used during construction	1,743		119	153	—	—	2,015
Equity in earnings of subsidiaries	8,804		—	—	—	(8,804)	—
Retirement defined benefits expense—other than service costs	(546)		194	(29)	—	—	(381)
Interest expense and other charges, net	(12,002)		(2,484)	(2,323)	—	215	(16,594)
Allowance for borrowed funds used during construction	602		36	50	—	—	688
Income before income taxes	27,132		7,999	3,359	—	(8,804)	29,686
Income taxes	2,957		1,798	527			5,282
Net income	24,175		6,201	2,832	—	(8,804)	24,404
Preferred stock dividends of subsidiaries	—		134	95	—		229
Net income attributable to Hawaiian Electric	24,175		6,067	2,737	—	(8,804)	24,175
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	23,905	6,067	2,737	—	(8,804)	$	23,905

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Comprehensive Income

Three months ended March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net income for common stock	$	23,905	6,067	2,737	—	(8,804)	$	23,905
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	5,184		748	652	—	(1,400)	5,184
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(5,158)		(747)	(652)	—	1,399	(5,158)
Other comprehensive income, net of taxes	26		1	—	—	(1)	26
Comprehensive income attributable to common shareholder	$	23,931	6,068	2,737	—	(8,805)	$	23,931

20

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Balance Sheet

March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi- diaries	Consoli- dating 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	4,986,417		1,358,367	1,207,095	—	—	7,551,879
Less accumulated depreciation	(1,706,529)		(604,021)	(549,169)	—	—	(2,859,719)
Construction in progress	160,331		13,927	29,730	—	—	203,988
Utility property, plant and equipment, net	3,482,630		773,879	691,250	—	—	4,947,759
Nonutility property, plant and equipment, less accumulated depreciation	5,305		115	1,532	—	—	6,952
Total property, plant and equipment, net	3,487,935		773,994	692,782	—	—	4,954,711
Investment in wholly owned subsidiaries, at equity	631,976		—	—	—	(631,976)	—
Current assets
Cash and cash equivalents	29,727		7,730	14,209	77	—	51,743
Restricted cash	11,506		—	—	—	—	11,506
Customer accounts receivable, net	101,605		21,358	18,686	—	—	141,649
Accrued unbilled revenues, net	72,784		14,911	14,118	—	—	101,813
Other accounts receivable, net	12,967		3,006	3,570	—	(14,470)	5,073
Fuel oil stock, at average cost	51,894		9,981	12,813	—	—	74,688
Materials and supplies, at average cost	40,395		9,873	19,458	—	—	69,726
Prepayments and other	29,769		3,534	3,791	—	(675)	36,419
Regulatory assets	42,852		2,840	8,630	—	—	54,322
Total current assets	393,499		73,233	95,275	77	(15,145)	546,939
Other long-term assets
Operating lease right-of-use assets	123,992		14,198	344	—	—	138,534
Regulatory assets	501,393		111,700	106,011	—	—	719,104
Other	102,767		18,591	20,424	—	(6,162)	135,620
Total other long-term assets	728,152		144,489	126,779	—	(6,162)	993,258
Total assets	$	5,241,562	991,716	914,836	77	(653,283)	$	6,494,908
Capitalization and liabilities
Capitalization
Common stock equity	$	2,157,385	320,494	311,405	77	(631,976)	$	2,157,385
Cumulative preferred stock—not subject to mandatory redemption	22,293		7,000	5,000	—	—	34,293
Long-term debt, net	1,176,229		246,310	253,324	—	—	1,675,863
Total capitalization	3,355,907		573,804	569,729	77	(631,976)	3,867,541
Current liabilities
Current portion of operating lease liabilities	64,423		1,844	34	—	—	66,301
Accounts payable	87,437		16,037	19,725	—	—	123,199
Interest and preferred dividends payable	20,075		3,698	4,400	—	(1)	28,172
Taxes accrued, including revenue taxes	107,552		25,372	22,876	—	(675)	155,125
Regulatory liabilities	17,000		5,901	7,469	—	—	30,370
Other	55,478		11,951	17,189	—	(14,618)	70,000
Total current liabilities	351,965		64,803	71,693	—	(15,294)	473,167
Deferred credits and other liabilities
Operating lease liabilities	71,431		12,353	318	—	—	84,102
Deferred income taxes	282,513		53,582	60,663	—	—	396,758
Regulatory liabilities	658,584		174,820	92,365	—	—	925,769
Unamortized tax credits	81,297		15,126	13,758	—	—	110,181
Defined benefit pension and other postretirement benefit plans liability	373,376		76,357	78,566	—	(6,013)	522,286
Other	66,489		20,871	27,744	—	—	115,104
Total deferred credits and other liabilities	1,533,690		353,109	273,414	—	(6,013)	2,154,200
Total capitalization and liabilities	$	5,241,562	991,716	914,836	77	(653,283)	$	6,494,908

21

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Balance Sheet

December 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi-diaries	Consoli- dating 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)	—
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)	—
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)	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)	$	2,141,918
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)	—
Accounts payable	97,102		19,570	17,177	—	—	133,849
Interest and preferred dividends payable	14,480		3,138	2,790	—	(58)	20,350
Taxes accrued, including revenue taxes	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)	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

22

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Changes in Common Stock Equity

Three months ended March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Balance, December 31, 2020	$	2,141,918	317,451	309,363	77	(626,891)	$	2,141,918
Net income for common stock	43,358		6,692	5,818	—	(12,510)	43,358
Other comprehensive income, net of taxes	34		1	—	—	(1)	34
Common stock dividends	(27,925)		(3,650)	(3,776)	—	7,426	(27,925)
Balance, March 31, 2021	$	2,157,385	320,494	311,405	77	(631,976)	$	2,157,385

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Changes in Common Stock Equity

Three months ended March 31, 2020  

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Balance, December 31, 2019	$	2,047,352	298,998	292,870	101	(591,969)	$	2,047,352
Net income for common stock	23,905		6,067	2,737	—	(8,804)	23,905
Other comprehensive income, net of taxes	26		1	—	—	(1)	26
Common stock dividends	(26,784)		(4,080)	(3,596)	—	7,676	(26,784)
Common stock issuance expenses	—		—	(1)	—	1	—
Balance, March 31, 2020	$	2,044,499	300,986	292,010	101	(593,097)	$	2,044,499

23

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Cash Flows

Three months ended March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net cash provided by operating activities	$	18,764	9,635	10,988	—	(7,426)	$	31,961
Cash flows from investing activities
Capital expenditures	(45,293)		(12,728)	(12,340)	—	—	(70,361)
Advances from affiliates	26,700		—	—	—	(26,700)	—
Other	1,182		372	309	—	—	1,863
Net cash used in investing activities	(17,411)		(12,356)	(12,031)	—	(26,700)	(68,498)
Cash flows from financing activities
Common stock dividends	(27,925)		(3,650)	(3,776)	—	7,426	(27,925)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(270)		(134)	(95)	—	—	(499)
Repayment of short-term debt	(50,000)		—	—	—	—	(50,000)
Proceeds from issuance of long-term debt	60,000		30,000	25,000	—	—	115,000
Net decrease in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	—		(18,800)	(7,900)	—	26,700	—
Other	(96)		(11)	(9)	—	—	(116)
Net cash provided by (used in) financing activities	(18,291)		7,405	13,220	—	34,126	36,460
Net increase (decrease) in cash and cash equivalents	(16,938)		4,684	12,177	—	—	(77)
Cash, cash equivalents and restricted cash, beginning of period	58,171		3,046	2,032	77	—	63,326
Cash, cash equivalents and restricted cash, end of period	41,233		7,730	14,209	77	—	63,249
Less: Restricted cash	(11,506)		—	—	—	—	(11,506)
Cash and cash equivalents, end of period	$	29,727	7,730	14,209	77	—	$	51,743

24

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Cash Flows

Three months ended March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net cash provided by operating activities	$	29,004	9,478	7,931	—	(7,272)	$	39,141
Cash flows from investing activities
Capital expenditures	(83,191)		(18,181)	(17,772)	—	—	(119,144)
Advances from (to) affiliates	(17,000)		8,000	—	—	9,000	—
Other	2,752		64	301	—	(404)	2,713
Net cash used in investing activities	(97,439)		(10,117)	(17,471)	—	8,596	(116,431)
Cash flows from financing activities
Common stock dividends	(26,784)		(4,080)	(3,596)	—	7,676	(26,784)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(270)		(134)	(95)	—	—	(499)
Proceeds from issuance of short-term debt	50,000		—	—	—	—	50,000
Proceeds from issuance of long-term debt	95,000		—	—	—	—	95,000
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	(46,987)		2,500	14,500	—	(9,000)	(38,987)
Other	(21)		(1)	(1)	—	—	(23)
Net cash provided by (used in) financing activities	70,938		(1,715)	10,808	—	(1,324)	78,707
Net increase (decrease) in cash and cash equivalents	2,503		(2,354)	1,268	—	—	1,417
Cash, cash equivalents and restricted cash, beginning of period	32,988		7,008	1,797	101	—	41,894
Cash, cash equivalents and restricted cash, end of period	35,491		4,654	3,065	101	—	43,311
Less: Restricted cash	(30,902)		—	—	—	—	(30,902)
Cash and cash equivalents, end of period	$	4,589	4,654	3,065	101	—	$	12,409

25

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Note 4 · Bank segment

Selected financial information

American Savings Bank, F.S.B.

Statements of Income and Comprehensive Income Data

	Three months ended March 31
(in thousands)	2021		2020
Interest and dividend income
Interest and fees on loans	$	49,947	$	55,545
Interest and dividends on investment securities	8,673		9,430
Total interest and dividend income	58,620		64,975
Interest expense
Interest on deposit liabilities	1,462		3,587
Interest on other borrowings	27		313
Total interest expense	1,489		3,900
Net interest income	57,131		61,075
Provision for credit losses	(8,435)		10,401
Net interest income after provision for credit losses	65,566		50,674
Noninterest income
Fees from other financial services	5,073		4,571
Fee income on deposit liabilities	3,863		5,113
Fee income on other financial products	2,442		1,872
Bank-owned life insurance	2,561		794
Mortgage banking income	4,300		2,000
Gain on sale of investment securities, net	528		—
Other income, net	272		413
Total noninterest income	19,039		14,763
Noninterest expense
Compensation and employee benefits	28,037		25,777
Occupancy	4,969		5,267
Data processing	4,351		3,837
Services	2,862		2,809
Equipment	2,222		2,339
Office supplies, printing and postage	1,044		1,341
Marketing	648		802
FDIC insurance	816		102
Other expense	2,554		4,194
Total noninterest expense	47,503		46,468
Income before income taxes	37,102		18,969
Income taxes	7,546		3,208
Net income	29,556		15,761
Other comprehensive income (loss), net of taxes	(45,754)		19,847
Comprehensive income (loss)	$	(16,198)	$	35,608

26

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*:

	Three months ended March 31
(in thousands)	2021		2020
Interest and dividend income	$	58,620	$	64,975
Noninterest income	19,039		14,763
Less: Gain on sale of investment securities, net	528		—
*Revenues-Bank	77,131		79,738
Total interest expense	1,489		3,900
Provision for credit losses	(8,435)		10,401
Noninterest expense	47,503		46,468
Less: Retirement defined benefits expense (credit)—other than service costs	(1,278)		434
*Expenses-Bank	41,835		60,335
*Operating income-Bank	35,296		19,403
Add back: Retirement defined benefits expense (credit)—other than service costs	(1,278)		434
Add back: Gain on sale of investment securities, net	528		—
Income before income taxes	$	37,102	$	18,969

27

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

American Savings Bank, F.S.B.

Balance Sheets Data

(in thousands)	March 31, 2021				December 31, 2020
Assets
Cash and due from banks			$	113,698			$	178,422
Interest-bearing deposits			110,365				114,304
Cash and cash equivalents			224,063				292,726
Investment securities
Available-for-sale, at fair value			2,305,257				1,970,417
Held-to-maturity, at amortized cost (fair value of $285,599 and $229,963, respectively)			295,046				226,947
Stock in Federal Home Loan Bank, at cost			10,000				8,680
Loans held for investment			5,310,081				5,333,843
Allowance for credit losses			(91,793)				(101,201)
Net loans			5,218,288				5,232,642
Loans held for sale, at lower of cost or fair value			23,637				28,275
Other			559,543				554,656
Goodwill			82,190				82,190
Total assets			$	8,718,024			$	8,396,533
Liabilities and shareholder’s equity
Deposit liabilities—noninterest-bearing			$	2,833,844			$	2,598,500
Deposit liabilities—interest-bearing			4,911,450				4,788,457
Other borrowings			102,685				89,670
Other			154,418				183,731
Total liabilities			8,002,397				7,660,358
Commitments and contingencies
Common stock			1				1
Additional paid-in capital			352,408				351,758
Retained earnings			394,026				369,470
Accumulated other comprehensive income (loss), net of taxes
Net unrealized gains (losses) on securities	$	(25,791)			$	19,986
Retirement benefit plans	(5,017)		(30,808)		(5,040)		14,946
Total shareholder’s equity			715,627				736,175
Total liabilities and shareholder’s equity			$	8,718,024			8,396,533
Other assets
Bank-owned life insurance			$	162,821			$	163,265
Premises and equipment, net			206,247				206,134
Accrued interest receivable			24,381				24,616
Mortgage-servicing rights			10,685				10,020
Low-income housing investments			80,791				83,435
Other			74,618				67,186
			$	559,543			$	554,656
Other liabilities
Accrued expenses			$	55,073			$	62,694
Federal and state income taxes payable			1,709				6,582
Cashier’s checks			29,363				38,011
Advance payments by borrowers			5,863				10,207
Other			62,410				66,237
			$	154,418			$	183,731

28

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Bank-owned life insurance is life insurance purchased by ASB on the lives of certain key employees, with ASB as the beneficiary. The insurance is used to fund employee benefits through tax-free income from increases in the cash value of the policies and insurance proceeds paid to ASB upon an insured’s death.

Other borrowings consisted of securities sold under agreements to repurchase, federal funds purchased and advances from the Federal Home Loan Bank (FHLB) of $102.7 million, nil and nil, respectively, as of March 31, 2021 and $89.7 million, nil and nil, respectively, as of December 31, 2020.

Investment securities.  The major components of investment securities were as follows:

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value		Gross unrealized losses
									Less than 12 months					12 months or longer
(dollars in thousands)									Number of issues	Fair  value		Amount		Number of issues	Fair  value		Amount
March 31, 2021
Available-for-sale
U.S. Treasury and federal agency obligations	$	55,969	$	1,719	$	(41)	$	57,647	1	$	4,908	$	(41)	—	$	—	$	—
Mortgage-backed securities*	2,239,311		15,404		(53,363)		2,201,352		92	1,613,008		(53,344)		1	958		(19)
Corporate bonds	29,781		1,050		—		30,831		—	—		—		—	—		—
Mortgage revenue bonds	15,427		—		—		15,427		—	—		—		—	—		—
	$	2,340,488	$	18,173	$	(53,404)	$	2,305,257	93	$	1,617,916	$	(53,385)	1	$	958	$	(19)
Held-to-maturity
Mortgage-backed securities*	$	295,046	$	2,812	$	(12,259)	$	285,599	16	$	220,908	$	(12,259)	—	$	—	$	—
	$	295,046	$	2,812	$	(12,259)	$	285,599	16	$	220,908	$	(12,259)	—	$	—	$	—
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)	—	$	—	$	—

* Issued or guaranteed by U.S. Government agencies or sponsored agencies

ASB does not believe that the investment securities that were in an unrealized loss position at March 31, 2021, represent a credit loss. Total gross unrealized losses were primarily attributable to change in market conditions. On a quarterly basis the investment securities are evaluated for changes in financial condition of the issuer. Based upon ASB’s evaluation, all securities held within the investment portfolio continue to be investment grade by one or more agencies. The contractual cash flows of the U.S. Treasury, federal agency obligations and agency mortgage-backed securities are backed by the full faith and credit guaranty of the United States government or an agency of the government. ASB does not intend to sell the securities before the recovery of its amortized cost basis and there have been no adverse changes in the timing of the contractual cash flows for the securities. ASB’s investment securities portfolio did not require an allowance for credit losses at March 31, 2021 and December 31, 2020.

U.S. Treasury, federal agency obligations, corporate bonds, and mortgage revenue bonds have contractual terms to maturity. Mortgage-backed securities have contractual terms to maturity, but require periodic payments to reduce principal. In addition, expected maturities will differ from contractual maturities because borrowers have the right to prepay the underlying mortgages.

29

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

The contractual maturities of investment securities were as follows:

March 31, 2021	Amortized cost		Fair value
(in thousands)
Available-for-sale
Due in one year or less	$	11,996	$	12,011
Due after one year through five years	43,530		45,180
Due after five years through ten years	30,224		31,287
Due after ten years	15,427		15,427
	101,177		103,905
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	2,239,311		2,201,352
Total available-for-sale securities	$	2,340,488	$	2,305,257
Held-to-maturity
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	$	295,046	$	285,599
Total held-to-maturity securities	$	295,046	$	285,599

Proceeds from the sale of available-for-sale securities were $197.4 million and nil, respectively, for the three months ended March 31, 2021 and 2020. Gross realized gains and losses for the three months ended March 31, 2021 were $1.0 million and $0.5 million, respectively. Gross realized gains and losses for the three months ended March 31, 2020 were nil.

Loans. The components of loans were summarized as follows:

	March 31, 2021		December 31, 2020
(in thousands)
Real estate:
Residential 1-4 family	$	2,107,537	$	2,144,239
Commercial real estate	1,012,968		983,865
Home equity line of credit	901,462		963,578
Residential land	17,468		15,617
Commercial construction	114,455		121,424
Residential construction	13,365		11,022
Total real estate	4,167,255		4,239,745
Commercial	1,010,004		936,748
Consumer	148,511		168,733
Total loans	5,325,770		5,345,226
Deferred fees and discounts	(15,689)		(11,383)
Allowance for credit losses	(91,793)		(101,201)
Total loans, net	$	5,218,288	$	5,232,642

ASB's policy is to require private mortgage insurance on all real estate loans when the loan-to-value ratio of the property exceeds 80% of the lower of the appraised value or purchase price at origination. For non-owner occupied residential property purchases, the loan-to-value ratio may not exceed 75% of the lower of the appraised value or purchase price at origination.

30

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Allowance for credit losses.  The allowance for credit losses (balances and changes) by portfolio segment were as follows:

(in thousands)	Residential 1-4 family		Commercial real estate		Home equity line of credit		Residential land		Commercial construction		Residential construction		Commercial loans		Consumer loans		Total
Three months ended March 31, 2021
Allowance for credit losses:
Beginning balance	$	4,600	$	35,607	$	6,813	$	609	$	4,149	$	11	$	25,462	$	23,950	$	101,201
Charge-offs	—		—		(50)		—		—		—		(771)		(2,860)		(3,681)
Recoveries	3		—		15		10		—		—		273		1,007		1,308
Provision	658		(1,262)		(877)		(46)		(2,696)		5		(460)		(2,357)		(7,035)
Ending balance	$	5,261	$	34,345	$	5,901	$	573	$	1,453	$	16	$	24,504	$	19,740	$	91,793
Three months ended March 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	—		—		—		(8)		—		—		(369)		(6,254)		(6,631)
Recoveries	53		—		6		9		—		—		186		764		1,018
Provision	(107)		1,326		(162)		(34)		1,060		(3)		1,993		5,828		9,901
Ending balance	$	4,476	$	16,587	$	6,225	$	352	$	3,446	$	14	$	12,977	$	33,007	$	77,084

Allowance for loan commitments.  The allowance for loan commitments by portfolio segment were as follows:

(in thousands)	Home equity  line of credit		Commercial construction		Commercial loans		Total
Three months ended March 31, 2021
Allowance for loan commitments:
Beginning balance	$	300	$	3,000	$	1,000	$	4,300
Provision	100		(1,700)		200		(1,400)
Ending balance	$	400	$	1,300	$	1,200	$	2,900
Three months ended March 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	—		515		(15)		500
Ending balance	$	300	$	3,191	$	309	$	3,800

Credit quality.  ASB performs an internal loan review and grading on an ongoing basis. The review provides management with periodic information as to the quality of the loan portfolio and effectiveness of its lending policies and procedures. The objectives of the loan review and grading procedures are to identify, in a timely manner, existing or emerging credit trends so that appropriate steps can be initiated to manage risk and avoid or minimize future losses. Loans subject to grading include commercial, commercial real estate and commercial construction loans.

Each commercial and commercial real estate loan is assigned an Asset Quality Rating (AQR) reflecting the likelihood of repayment or orderly liquidation of that loan transaction pursuant to regulatory credit classifications:  Pass, Special Mention, Substandard, Doubtful, and Loss. The AQR is a function of the probability of default model rating, the loss given default, and possible non-model factors which impact the ultimate collectability of the loan such as character of the business owner/guarantor, interim period performance, litigation, tax liens and major changes in business and economic conditions. Pass exposures generally are well protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral. Special Mention loans have potential weaknesses that, if left uncorrected, could jeopardize the liquidation of the debt. Substandard loans have well-defined weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that ASB may sustain some loss. An asset classified Doubtful has the weaknesses of those classified Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. An asset classified Loss is considered uncollectible and has such little value that its continuance as a bankable asset is not warranted.

31

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

The credit risk profile by vintage date based on payment activity or internally assigned grade for loans was as follows:

	Term Loans by Origination Year												Revolving Loans
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving		Converted to term loans		Total
March 31, 2021
Residential 1-4 family
Current	$	150,713	$	549,327	$	184,339	$	97,560	$	179,131	$	934,471	$	—	$	—	$	2,095,541
30-59 days past due	—		280		—		—		—		2,081		—		—		2,361
60-89 days past due	—		—		3,018		431		—		1,954		—		—		5,403
Greater than 89 days past due	—		—		942		—		—		3,290		—		—		4,232
	150,713		549,607		188,299		97,991		179,131		941,796		—		—		2,107,537
Home equity line of credit
Current	—		—		—		—		—		—		861,116		36,792		897,908
30-59 days past due	—		—		—		—		—		—		659		473		1,132
60-89 days past due	—		—		—		—		—		—		261		73		334
Greater than 89 days past due	—		—		—		—		—		—		1,243		845		2,088
	—		—		—		—		—		—		863,279		38,183		901,462
Residential land
Current	2,794		8,354		2,884		1,290		855		292		—		—		16,469
30-59 days past due	—		—		—		—		—		699		—		—		699
60-89 days past due	—		—		—		—		—		—		—		—		—
Greater than 89 days past due	—		—		—		—		—		300		—		—		300
	2,794		8,354		2,884		1,290		855		1,291		—		—		17,468
Residential construction
Current	1,114		7,865		3,344		383		659		—		—		—		13,365
30-59 days past due	—		—		—		—		—		—		—		—		—
60-89 days past due	—		—		—		—		—		—		—		—		—
Greater than 89 days past due	—		—		—		—		—		—		—		—		—
	1,114		7,865		3,344		383		659		—		—		—		13,365
Consumer
Current	6,658		25,307		57,781		29,734		4,219		475		16,332		3,729		144,235
30-59 days past due	125		164		577		452		90		1		106		125		1,640
60-89 days past due	—		149		623		372		119		1		80		92		1,436
Greater than 89 days past due	—		218		356		280		56		1		199		90		1,200
	6,783		25,838		59,337		30,838		4,484		478		16,717		4,036		148,511
Commercial real estate
Pass	23,091		274,952		69,384		60,627		28,174		222,617		11,000		—		689,845
Special Mention	—		4,914		29,597		57,489		51,586		97,247		—		—		240,833
Substandard	—		—		14,647		4,170		1,877		61,596		—		—		82,290
Doubtful	—		—		—		—		—		—		—		—		—
	23,091		279,866		113,628		122,286		81,637		381,460		11,000		—		1,012,968
Commercial construction
Pass	—		21,414		39,513		26,990		—		2,917		20,972		—		111,806
Special Mention	245		2,404		—		—		—		—		—		—		2,649
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
	245		23,818		39,513		26,990		—		2,917		20,972		—		114,455
Commercial
Pass	169,095		337,753		96,251		60,462		28,545		51,072		91,178		19,666		854,022
Special Mention	65		38,316		15,024		1,820		6,725		33,990		26,301		26		122,267
Substandard	—		275		7,921		2,004		3,765		11,276		6,665		1,809		33,715
Doubtful	—		—		—		—		—		—		—		—		—
	169,160		376,344		119,196		64,286		39,035		96,338		124,144		21,501		1,010,004
Total loans	$	353,900	$	1,271,692	$	526,201	$	344,064	$	305,801	$	1,424,280	$	1,036,112	$	63,720	$	5,325,770

32

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

	Term Loans by Origination Year												Revolving Loans
(in thousands)	2020		2019		2018		2017		2016		Prior		Revolving		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

33

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Revolving loans converted to term loans during the three months ended March 31, 2021 in the commercial, home equity line of credit and consumer portfolios was $0.5 million, $6.2 million, and $0.7 million, respectively. Revolving loans converted to term loans during the three months ended March 31, 2020 in the commercial, home equity line of credit and consumer portfolios was $2.0 million, $1.8 million and $1.0 million, respectively.

The credit risk profile based on payment activity for loans was as follows:

(in thousands)	30-59 days past due		60-89 days past due		Greater than 90 days		Total past due		Current		Total financing receivables		Amortized cost> 90 days and accruing
March 31, 2021
Real estate:
Residential 1-4 family	$	2,361	$	5,403	$	4,232	$	11,996	$	2,095,541	$	2,107,537	$	—
Commercial real estate	1,681		—		—		1,681		1,011,287		1,012,968		—
Home equity line of credit	1,132		334		2,088		3,554		897,908		901,462		—
Residential land	699		—		300		999		16,469		17,468		—
Commercial construction	—		—		—		—		114,455		114,455		—
Residential construction	—		—		—		—		13,365		13,365		—
Commercial	146		47		73		266		1,009,738		1,010,004		—
Consumer	1,640		1,436		1,200		4,276		144,235		148,511		—
Total loans	$	7,659	$	7,220	$	7,893	$	22,772	$	5,302,998	$	5,325,770	$	—
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	$	—

The credit risk profile based on nonaccrual loans were as follows:

(in thousands)	March 31, 2021						December 31, 2020
	With a Related ACL		Without a Related ACL		Total		With a Related ACL		Without a Related ACL		Total
Real estate:
Residential 1-4 family	$	16,945	$	2,987	$	19,932	$	8,991	$	2,835	$	11,826
Commercial real estate	15,634		2,828		18,462		15,847		2,875		18,722
Home equity line of credit	5,075		1,587		6,662		5,791		1,567		7,358
Residential land	107		300		407		108		300		408
Commercial construction	—		—		—		—		—		—
Residential construction	—		—		—		—		—		—
Commercial	1,763		2,918		4,681		1,819		3,328		5,147
Consumer	3,192		—		3,192		3,935		—		3,935
Total	$	42,716	$	10,620	$	53,336	$	36,491	$	10,905	$	47,396

34

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

The credit risk profile based on loans whose terms have been modified and accruing interest were as follows:

(in thousands)	March 31, 2021		December 31, 2020
Real estate:
Residential 1-4 family	$	7,453	$	7,932
Commercial real estate	3,254		3,281
Home equity line of credit	7,727		8,148
Residential land	1,738		1,555
Commercial construction	—		—
Residential construction	—		—
Commercial	5,737		6,108
Consumer	54		54
Total troubled debt restructured loans accruing interest	$	25,963	$	27,078

ASB did not recognize interest on nonaccrual loans for the three months ended March 31, 2021 and 2020.

Troubled debt restructurings.  A loan modification is deemed to be a TDR when the borrower is determined to be experiencing financial difficulties and ASB grants a concession it would not otherwise consider.

The allowance for credit losses on TDR loans that do not share risk characteristics are individually evaluated based on the present value of expected future cash flows discounted at the loan’s effective original contractual rate or based on the fair value of collateral less cost to sell. The financial impact of the estimated loss is an increase to the allowance associated with the modified loan. When available information confirms that specific loans or portions thereof are uncollectible (confirmed losses), these amounts are charged off against the allowance for credit losses.

Loan modifications that occurred during the first three months of 2021 and 2020 were as follows:

Loans modified as a TDR	Three months ended March 31, 2021
(dollars in thousands)	Number  of contracts	Outstanding recorded  investment  (as of period end)1		Related allowance (as of period end)
Troubled debt restructurings
Real estate:
Residential 1-4 family	12	$	8,283	$	298
Commercial real estate	1	482		—
Home equity line of credit	1	170		21
Residential land	1	271		11
Commercial construction	—	—		—
Residential construction	—	—		—
Commercial	2	59		19
Consumer	—	—		—
	17	$	9,265	$	349

35

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

	Three months ended March 31, 2020
(dollars in thousands)	Number  of contracts	Outstanding recorded  investment  (as of period end)1		Related allowance (as of period end)
Troubled debt restructurings
Real estate:
Residential 1-4 family	1	$	148	$	8
Commercial real estate	2	16,584		4,281
Home equity line of credit	—	—		—
Residential land	—	—		—
Commercial construction	—	—		—
Residential construction	—	—		—
Commercial	4	756		278
Consumer	—	—		—
	7	$	17,488	$	4,567

1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included.

There were no loans modified in TDRs that experienced a payment default of 90 days or more during the first three months of 2021 and 2020.

If a loan modified in a TDR subsequently defaults, ASB evaluates the loan for further impairment. Based on its evaluation, adjustments may be made in the allocation of the allowance or partial charge-offs may be taken to further write-down the carrying value of the loan. Commitments to lend additional funds to borrowers whose loan terms have been modified in a TDR totaled nil at March 31, 2021 and December 31, 2020.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides that a financial institution may elect to suspend the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and any related impairment for accounting purposes.

In response to the COVID-19 pandemic, the Board of Governors of the FRB, the FDIC, the National Credit Union Administration, the OCC, and the Consumer Financial Protection Bureau, in consultation with the state financial regulators (collectively, the “agencies”) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to accounting for loan modifications, past due reporting and nonaccrual status and charge-offs.

Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with the FASB staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payment. Financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreement. If a financial institution agrees to a payment deferral, these loans would not be considered past due during the period of the deferral. Lastly, during short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual or as classified.

36

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Collateral-dependent loans. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral. Loans considered collateral-dependent were as follows:

	March 31, 2021		December 31, 2020
(in thousands)	Amortized cost		Amortized cost		Collateral type
Real estate:
Residential 1-4 family	$	2,782	$	2,541	Residential real estate property
Commercial real estate	2,828		2,875		Commercial real estate property
Home equity line of credit	1,587		1,567		Residential real estate property
Residential land	300		300		Residential real estate property
Total real estate	7,497		7,283
Commercial	889		934		Business assets
Total	$	8,386	$	8,217

ASB had $3.8 million of mortgage loans collateralized by residential real estate property that were in the process of foreclosure at March 31, 2021 and December 31, 2020.

Mortgage servicing rights (MSRs). In its mortgage banking business, ASB sells residential mortgage loans to government-sponsored entities and other parties, who may issue securities backed by pools of such loans. ASB retains no beneficial interests in these loans other than the servicing rights of certain loans sold.

ASB received proceeds from the sale of residential mortgages of $170.9 million and $72.5 million for the three months ended March 31, 2021 and 2020, respectively, and recognized gains on such sales of $4.3 million and $2.0 million for the three months ended March 31, 2021 and 2020, respectively.

There were no repurchased mortgage loans for the three months ended March 31, 2021 and 2020. The repurchase reserve was $0.1 million as of March 31, 2021 and 2020.

Mortgage servicing fees, a component of other income, net, were $0.9 million and $0.8 million for the three months ended March 31, 2021 and 2020, respectively.

Changes in the carrying value of MSRs were as follows:

(in thousands)	Gross carrying amount1		Accumulated amortization		Valuation allowance		Net carrying amount
March 31, 2021	$	20,830	$	(10,141)	$	(4)	$	10,685
December 31, 2020	22,950		(12,670)		(260)		10,020

1     Reflects impact of loans paid in full

Changes related to MSRs were as follows:

	Three months ended March 31
(in thousands)	2021		2020
Mortgage servicing rights
Beginning balance	$	10,280	$	9,101
Amount capitalized	1,547		636
Amortization	(1,138)		(617)
Other-than-temporary impairment	—		—
Carrying amount before valuation allowance	10,689		9,120
Valuation allowance for mortgage servicing rights
Beginning balance	260		—
Provision	(256)		—
Other-than-temporary impairment	—		—
Ending balance	4		—
Net carrying value of mortgage servicing rights	$	10,685	$	9,120

37

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

ASB capitalizes MSRs acquired upon the sale of mortgage loans with servicing rights retained. On a monthly basis, ASB compares the net carrying value of the MSRs to its fair value to determine if there are any changes to the valuation allowance and/or other-than-temporary impairment for the MSRs.

ASB uses a present value cash flow model to estimate the fair value of MSRs. Impairment is recognized through a valuation allowance for each stratum when the carrying amount exceeds fair value, with any associated provision recorded as a component of loan servicing fees included in “Revenues - bank” in the consolidated statements of income. A direct write-down is recorded when the recoverability of the valuation allowance is deemed to be unrecoverable.

Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows:

(dollars in thousands)	March 31, 2021			December 31, 2020
Unpaid principal balance	$	1,505,963		$	1,450,312
Weighted average note rate	3.57		%	3.68		%
Weighted average discount rate	9.25		%	9.25		%
Weighted average prepayment speed	12.0		%	17.7		%

The sensitivity analysis of fair value of MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows:

(dollars in thousands)	March 31, 2021		December 31, 2020
Prepayment rate:
25 basis points adverse rate change	$	(659)	$	(738)
50 basis points adverse rate change	(1,376)		(1,445)
Discount rate:
25 basis points adverse rate change	(110)		(68)
50 basis points adverse rate change	(218)		(135)

The effect of a variation in certain assumptions on fair value is calculated without changing any other assumptions. This analysis typically cannot be extrapolated because the relationship of a change in one key assumption to the changes in the fair value of MSRs typically is not linear.

Other borrowings.  As of March 31, 2021 and December 31, 2020, ASB had no FHLB advances outstanding or federal funds purchased with the Federal Reserve Bank. ASB was in compliance with all Advances, Pledge and Security Agreement requirements as of March 31, 2021.

Securities sold under agreements to repurchase are accounted for as financing transactions and the obligations to repurchase these securities are recorded as liabilities in the condensed consolidated balance sheets. ASB pledges investment securities as collateral for securities sold under agreements to repurchase. All such agreements are subject to master netting arrangements, which provide for a conditional right of set-off in case of default by either party; however, ASB presents securities sold under agreements to repurchase on a gross basis in the balance sheet. The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties:

(in millions)	Gross amount  of recognized  liabilities		Gross amount  offset in the  Balance Sheets		Net amount of liabilities presented in the Balance Sheets
Repurchase agreements
March 31, 2021	$	103	$	—	$	103
December 31, 2020	90		—		90

	Gross amount not offset in the Balance Sheets
(in millions)	Net amount of liabilities presented in the Balance Sheets		Financial instruments		Cash collateral pledged
Commercial account holders
March 31, 2021	$	103	$	122	$	—
December 31, 2020	90		92		—

38

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

The securities underlying the agreements to repurchase are book-entry securities and were delivered by appropriate entry into the counterparties’ accounts or into segregated tri-party custodial accounts at the FHLB. The securities underlying the agreements to repurchase continue to be reflected in ASB’s asset accounts.

Derivative financial instruments. ASB enters into interest rate lock commitments (IRLCs) with borrowers, and forward commitments to sell loans or to-be-announced mortgage-backed securities to investors to hedge against the inherent interest rate and pricing risks associated with selling loans.

ASB enters into IRLCs for residential mortgage loans, which commit ASB to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose ASB to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free-standing derivatives which are carried at fair value with changes recorded in mortgage banking income.

ASB enters into forward commitments to hedge the interest rate risk for rate locked mortgage applications in process and closed mortgage loans held for sale. These commitments are primarily forward sales of to-be-announced mortgage backed securities. Generally, when mortgage loans are closed, the forward commitment is liquidated and replaced with a mandatory delivery forward sale of the mortgage to a secondary market investor. In some cases, a best-efforts forward sale agreement is utilized as the forward commitment. These commitments are free-standing derivatives which are carried at fair value with changes recorded in mortgage banking income.

Changes in the fair value of IRLCs and forward commitments subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time.

The notional amount and fair value of ASB’s derivative financial instruments were as follows:

	March 31, 2021				December 31, 2020
(in thousands)	Notional amount		Fair value		Notional amount		Fair value
Interest rate lock commitments	$	49,316	$	438	$	120,980	$	4,536
Forward commitments	49,500		340		100,500		(500)

ASB’s derivative financial instruments, their fair values and balance sheet location were as follows:

Derivative Financial Instruments Not Designated as Hedging Instruments 1	March 31, 2021				December 31, 2020
(in thousands)	Asset derivatives		Liability derivatives		Asset derivatives		Liability derivatives
Interest rate lock commitments	$	456	$	(18)	$	4,536	$	—
Forward commitments	340		—		—		500
	$	796	$	(18)	$	4,536	$	500

1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the balance sheets.

The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in ASB’s statements of income:

Derivative Financial Instruments Not Designated as Hedging Instruments	Location of net gains (losses) recognized in the Statements of Income	Three months ended March 31
(in thousands)		2021		2020
Interest rate lock commitments	Mortgage banking income	$	(4,098)	$	1,555
Forward commitments	Mortgage banking income	840		(543)
		$	(3,258)	$	1,012

Low-Income Housing Tax Credit (LIHTC). ASB’s unfunded commitments to fund its LIHTC investment partnerships were $37.8 million and $41.0 million at March 31, 2021 and December 31, 2020, respectively. These unfunded commitments were unconditional and legally binding and are recorded in other liabilities with a corresponding increase in other assets. As of March 31, 2021, ASB did not have any impairment losses resulting from forfeiture or ineligibility of tax credits or other circumstances related to its LIHTC investment partnerships.

39

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Note 5 · Credit agreements

HEI and Hawaiian Electric each entered into a separate agreement with a syndicate of eight financial institutions (the HEI Facility and Hawaiian Electric Facility, respectively, and together, the Credit Facilities), effective July 3, 2017, to amend and restate their respective previously existing revolving unsecured credit agreements. The $150 million HEI Facility and $200 million Hawaiian Electric Facility both will terminate on June 30, 2022. Neither of the facilities are collateralized. As of March 31, 2021 and December 31, 2020, no amounts were outstanding under the Credit Facilities.

The Credit Facilities will be maintained to support each company’s respective short-term commercial paper program, but may be drawn on to meet each company’s respective working capital needs and general corporate purposes.

Hawaiian Electric has a $75 million 364-day revolving credit agreement with no amount outstanding at March 31, 2021. On April 19, 2021, the revolving credit agreement terminated and was not renewed.

Note 6 · Shareholders’ equity

Accumulated other comprehensive income/(loss).  Changes in the balances of each component of accumulated other comprehensive income/(loss) (AOCI) were as follows:

	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, 2020	$	19,986	$	(3,363)	$	(17,887)	$	(1,264)	$	(2,919)
Current period other comprehensive income (loss)	(45,777)		1,562		199		(44,016)		34
Balance, March 31, 2021	$	(25,791)	$	(1,801)	$	(17,688)	$	(45,280)	$	(2,885)
Balance, December 31, 2019	$	2,481	$	(1,613)	$	(20,907)	$	(20,039)	$	(1,279)
Current period other comprehensive income (loss)	19,448		(1,784)		548		18,212		26
Balance, March 31, 2020	$	21,929	$	(3,397)	$	(20,359)	$	(1,827)	$	(1,253)

Reclassifications out of AOCI were as follows:

	Amount reclassified from AOCI				Affected line item in the  Statements of Income / Balance Sheets
Three months ended March 31	2021		2020
(in thousands)
HEI consolidated
Net realized gains on securities included in net income	$	(387)	$	—	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	6,010		5,706		See Note 8 for additional details
Impact of D&Os of the PUC included in regulatory assets	(5,811)		(5,158)		See Note 8 for additional details
Total reclassifications	$	(188)	$	548
Hawaiian Electric consolidated
Retirement benefit plans:
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost	$	5,845	$	5,184	See Note 8 for additional details
Impact of D&Os of the PUC included in regulatory assets	(5,811)		(5,158)		See Note 8 for additional details
Total reclassifications	$	34	$	26

40

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Note 7 · Revenues

Revenue from contracts with customers. The following tables disaggregate revenues by major source, timing of revenue recognition, and segment:

	Three months ended March 31, 2021
(in thousands)	Electric utility		Bank		Other		Total
Revenues from contracts with customers
Electric energy sales - residential	$	181,239	$	—	$	—	$	181,239
Electric energy sales - commercial	168,465		—		—		168,465
Electric energy sales - large light and power	176,815		—		—		176,815
Electric energy sales - other	2,479		—		—		2,479
Bank fees	—		11,378		—		11,378
Other sales	—		—		924		924
Total revenues from contracts with customers	528,998		11,378		924		541,300
Revenues from other sources
Regulatory revenue	$	28,429	$	—	$	—	$	28,429
Bank interest and dividend income	—		58,620		—		58,620
Other bank noninterest income	—		7,133		—		7,133
Other	7,437		—		27		7,464
Total revenues from other sources	35,866		65,753		27		101,646
Total revenues	$	564,864	$	77,131	$	951	$	642,946
Timing of revenue recognition
Services/goods transferred at a point in time	$	—	$	11,378	$	—	$	11,378
Services/goods transferred over time	528,998		—		924		529,922
Total revenues from contracts with customers	$	528,998	$	11,378	$	924	$	541,300

	Three months ended March 31, 2020
(in thousands)	Electric utility		Bank		Other		Total
Revenues from contracts with customers
Electric energy sales - residential	$	190,266	$	—	$	—	$	190,266
Electric energy sales - commercial	197,105		—		—		197,105
Electric energy sales - large light and power	216,220		—		—		216,220
Electric energy sales - other	3,458		—		—		3,458
Bank fees	—		11,556		—		11,556
Total revenues from contracts with customers	607,049		11,556		—		618,605
Revenues from other sources
Regulatory revenue	(15,304)		—		—		(15,304)
Bank interest and dividend income	—		64,975		—		64,975
Other bank noninterest income	—		3,207		—		3,207
Other	5,697		—		6		5,703
Total revenues from other sources	(9,607)		68,182		6		58,581
Total revenues	$	597,442	$	79,738	$	6	$	677,186
Timing of revenue recognition
Services/goods transferred at a point in time	$	—	$	11,556	$	—	$	11,556
Services/goods transferred over time	607,049		—		—		607,049
Total revenues from contracts with customers	$	607,049	$	11,556	$	—	$	618,605

There are no material contract assets or liabilities associated with revenues from contracts with customers existing at the beginning of the period or as of March 31, 2021. Accounts receivable and unbilled revenues related to contracts with customers represent an unconditional right to consideration since all performance obligations have been satisfied. These amounts are disclosed as accounts receivable and unbilled revenues, net on HEI’s condensed consolidated balance sheets and customer accounts receivable, net and accrued unbilled revenues, net on Hawaiian Electric’s condensed consolidated balance sheets.

41

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

As of March 31, 2021, the Company had no material remaining performance obligations due to the nature of the Company’s contracts with its customers. For the Utilities, performance obligations are fulfilled as electricity is delivered to customers. For ASB, fees are recognized when a transaction is completed.

Note 8 · Retirement benefits

Defined benefit pension and other postretirement benefit plans information.  For the first three months of 2021, the Company contributed $9 million ($9 million by the Utilities) to its pension and other postretirement benefit plans, compared to $17 million ($17 million by the Utilities) in the first three months of 2020. The Company’s current estimate of total contributions to its pension and other postretirement benefit plans in 2021 is $52 million ($51 million by the Utilities, $1 million by HEI and nil by ASB), compared to $71 million ($70 million by the Utilities, $1 million by HEI and nil by ASB) in 2020. In addition, the Company expects to pay directly $3 million ($1 million by the Utilities) of benefits in 2021, compared to $2 million ($1 million by the Utilities) paid in 2020.

The components of net periodic pension costs (NPPC) and net periodic benefit costs (NPBC) for HEI consolidated and Hawaiian Electric consolidated were as follows:

	Pension benefits				Other benefits
Three months ended March 31	2021		2020		2021		2020
(in thousands)
HEI consolidated
Service cost	$	20,464	$	18,363	$	705	$	631
Interest cost	18,801		20,163		1,569		1,855
Expected return on plan assets	(33,067)		(28,466)		(3,233)		(3,038)
Amortization of net prior period (gain)/cost	—		3		(383)		(440)
Amortization of net actuarial losses1	1,556		8,057		254		50
Net periodic pension/benefit cost (return)	7,754		18,120		(1,088)		(942)
Impact of PUC D&Os	11,167		6,262		970		777
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$	18,921	$	24,382	$	(118)	$	(165)
Hawaiian Electric consolidated
Service cost	$	19,994	$	17,891	$	699	$	626
Interest cost	17,531		18,715		1,504		1,782
Expected return on plan assets	(31,368)		(26,855)		(3,182)		(2,990)
Amortization of net prior period (gain)/cost	—		2		(383)		(440)
Amortization of net actuarial losses1	2,559		7,368		250		51
Net periodic pension/benefit cost (return)	8,716		17,121		(1,112)		(971)
Impact of PUC D&Os	11,167		6,262		970		777
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$	19,883	$	23,383	$	(142)	$	(194)

1 Three months ended March 31, 2021 amounts include the one-time cumulative impact of the change in accounting principle for the plans’ fixed income securities from the calculated market-related value method to the fair value method, which was recorded in the first quarter of 2021.

HEI consolidated recorded retirement benefits expense of $11 million ($12 million by the Utilities) in the first three months of 2021 and $15 million ($14 million by the Utilities) in the first three months of 2020 and charged the remaining net periodic benefit cost primarily to electric utility plant.

Effective January 1, 2021, the Company adopted a change in accounting principle for the plans’ fixed income securities from the calculated market-related value method to the fair value method in the calculation of the expected return on plan assets component of NPPC and NPBC. The remaining plan assets continue to use the calculated market-related value methodology. The Company considers the fair value approach to be preferable for its fixed-income securities portfolio because it results in a current reflection of the changes in the value of plan assets in a way similar to the obligations it is intended to hedge. The Company evaluated the effect of this change in accounting principle and deemed it to be immaterial to the historical financial statements of the Company and Hawaiian Electric and, therefore, did not account for the change retrospectively and recorded the cumulative effects from the change in accounting principle in earnings for non-Utility businesses in the first quarter of 2021.

42

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Amounts related to the Utilities were reflected as adjustments to regulatory assets as appropriate, consistent with the expected regulatory treatment as described in the following paragraph.

The Utilities have implemented pension and OPEB tracking mechanisms under which all of their retirement benefit expenses (except for executive life and nonqualified pension plan expenses) determined in accordance with GAAP are recovered over time. Under the tracking mechanisms, any actual costs determined in accordance with GAAP that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will then be amortized over 5 years beginning with the respective utility’s next rate case.

Defined contribution plans information.  For the first three months of 2021 and 2020, the Company’s expenses for its defined contribution plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan were $1.7 million and $1.8 million, respectively, and cash contributions were $1.8 million and $3.2 million, respectively. For the first three months of 2021 and 2020, the Utilities’ expenses and cash contributions for its defined contribution plan under the HEIRSP were $0.8 million and $0.7 million, respectively.

Note 9 · Share-based compensation

Under the 2010 Equity and Incentive Plan, as amended, HEI can issue shares of common stock as incentive compensation to selected employees in the form of stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares and other share-based and cash-based awards. The 2010 Equity and Incentive Plan (original EIP) was amended and restated effective March 1, 2014 (EIP) and an additional 1.5 million shares were added to the shares available for issuance under these programs.

As of March 31, 2021, approximately 2.9 million shares remained available for future issuance under the terms of the EIP, assuming recycling of shares withheld to satisfy minimum statutory tax liabilities relating to EIP awards, including an estimated 0.9 million shares that could be issued upon the vesting of outstanding restricted stock units and the achievement of performance goals for awards outstanding under long-term incentive plans (assuming that such performance goals are achieved at maximum levels).

Under the 2011 Nonemployee Director Stock Plan (2011 Director Plan), HEI can issue shares of common stock as compensation to nonemployee directors of HEI, Hawaiian Electric and ASB. In June 2019, an additional 300,000 shares were made available for issuance under the 2011 Director Plan. As of March 31, 2021, there were 274,163 shares remaining available for future issuance under the 2011 Director Plan.

Share-based compensation expense and the related income tax benefit were as follows:

	Three months ended March 31
(in millions)	2021		2020
HEI consolidated
Share-based compensation expense 1	$	2.6	$	1.7
Income tax benefit	0.4		0.3
Hawaiian Electric consolidated
Share-based compensation expense 1	1.1		0.8
Income tax benefit	0.3		0.1

1    For the three months ended March 31, 2021 and 2020, the Company has not capitalized any share-based compensation.

Stock awards. HEI granted HEI common stock to nonemployee directors under the 2011 Director Plan as follows:

	Three months ended March 31
(dollars in thousands)	2021		2020
Shares granted	—		468
Fair value	$	—	$	23
Income tax benefit	—		6

The number of shares issued to each nonemployee director of HEI, Hawaiian Electric and ASB is determined based on the closing price of HEI common stock on the grant date.

43

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Restricted stock units.  Information about HEI’s grants of restricted stock units was as follows:

	Three months ended March 31
	2021				2020
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	193,939		$	40.89	207,641		$	35.36
Granted	127,598		33.98		77,679		48.11
Vested	(78,988)		38.51		(77,719)		34.19
Forfeited	(6,358)		42.20		(4,160)		35.81
Outstanding, end of period	236,191		$	37.91	203,441		$	40.67
Total weighted-average grant-date fair value of shares granted (in millions)	$	4.3			$	3.7

(1)    Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.

For the three months ended March 31, 2021 and 2020, total restricted stock units and related dividends that vested had a fair value of $3.0 million and $4.2 million, respectively, and the related tax benefits were $0.6 million and $0.7 million, respectively.

As of March 31, 2021, there was $8.3 million of total unrecognized compensation cost related to the nonvested restricted stock units. The cost is expected to be recognized over a weighted-average period of 2.6 years.

Long-term incentive plan payable in stock.  The 2019-2021, 2020-2022 and 2021-2023 long-term incentive plans (LTIP) provide for performance awards under the EIP of shares of HEI common stock based on the satisfaction of performance goals, including a market condition goal. The number of shares of HEI common stock that may be awarded is fixed on the date the grants are made, subject to the achievement of specified performance levels and calculated dividend equivalents. The potential payout varies from 0% to 200% of the number of target shares, depending on the achievement of the goals. The market condition goal is based on HEI’s total shareholder return (TSR) compared to the Edison Electric Institute Index over the relevant three-year period. The other performance condition goals relate to EPS growth, return on average common equity (ROACE), renewable portfolio standards, Hawaiian Electric’s net income growth, ASB’s efficiency ratio and strategic initiatives and Pacific Current’s EBITDA growth and return on average invested capital.

LTIP linked to TSR.  Information about HEI’s LTIP grants linked to TSR was as follows:

	Three months ended March 31
	2021				2020
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	89,222		$	42.10	96,402		$	39.62
Granted	44,210		41.12		24,630		48.62
Vested (issued or unissued and cancelled)	(32,355)		38.20		(29,409)		39.51
Forfeited	(1,024)		45.89		(1,007)		41.72
Outstanding, end of period	100,053		$	42.89	90,616		$	42.08
Total weighted-average grant-date fair value of shares granted (in millions)	$	1.8			$	1.2

(1)    Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.

The grant date fair values of the shares were determined using a Monte Carlo simulation model utilizing actual information for the common shares of HEI and its peers for the period from the beginning of the performance period to the grant date and estimated future stock volatility and dividends of HEI and its peers over the remaining three-year performance period. The expected stock volatility assumptions for HEI and its peer group were based on the three-year historic stock volatility, and the annual dividend yield assumptions were based on dividend yields calculated on the basis of daily stock prices over the same three-year historical period.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TSR and the resulting fair value of LTIP awards granted:

	2021		2020
Risk-free interest rate	0.19	%	1.39	%
Expected life in years	3		3
Expected volatility	29.9	%	13.1	%
Range of expected volatility for Peer Group	25.6% to 102.9%		13.6% to 95.4%
Grant date fair value (per share)	$41.12		$48.62

For the three months ended March 31, 2021 and 2020, total vested LTIP awards linked to TSR and related dividends had a fair value of $0.8 million and $2.6 million, respectively, and the related tax benefits were $0.2 million and $0.4 million, respectively.

As of March 31, 2021, there was $2.6 million of total unrecognized compensation cost related to the nonvested performance awards payable in shares linked to TSR. The cost is expected to be recognized over a weighted-average period of 1.9 years.

LTIP awards linked to other performance conditions.  Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows:

	Three months ended March 31
	2021				2020
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	220,715		$	41.03	403,768		$	35.15
Granted	176,844		33.98		98,522		48.10
Vested	(43,155)		34.12		(135,804)		33.48
Increase above target (cancelled)	(14,604)		43.90		(26,111)		34.13
Forfeited	(4,098)		44.36		(4,031)		39.67
Outstanding, end of period	335,702		$	38.04	336,344		$	39.64
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions)	$	6.0			$	4.7

(1)    Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.

For the three months ended March 31, 2021 and 2020, total vested LTIP awards linked to other performance conditions and related dividends had a fair value of $1.7 million and $7.6 million, respectively, and the related tax benefits were $0.4 million and $1.2 million, respectively.

As of March 31, 2021, there was $8.0 million of total unrecognized compensation cost related to the nonvested shares linked to performance conditions other than TSR. The cost is expected to be recognized over a weighted-average period of 2.0 years.

Note 10 · Income taxes

The Company’s and the Utilities’ effective tax rates (combined federal and state income tax rates) were 19% and 20%, respectively, for the three months ended March 31, 2021. These rates differed from the combined statutory rates, due primarily to the Utilities’ amortization of excess deferred income taxes related to the provision in the Tax Act that lowered the federal income tax rate from 35% to 21%, the tax benefits derived from the low income housing tax credit investments and the non-taxability of the bank-owned life insurance income. The Company’s and the Utilities’ effective tax rates were 15% and 18%, respectively, for the three months ended March 31, 2020.

In August 2020, the Internal Revenue Service notified the Company that its 2017 and 2018 income tax returns would be examined. The Company was previously audited every year through 2011, at which time the IRS changed their internal policies regarding audit frequency. The Company has received several initial requests for general tax return information and has responded or is in the process of responding to such requests.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Note 11 · Cash flows

Three months ended March 31	2021		2020
(in millions)
Supplemental disclosures of cash flow information
HEI consolidated
Interest paid to non-affiliates, net of amounts capitalized	$	15	$	18
Income taxes paid (including refundable credits)	—		—
Income taxes refunded (including refundable credits)	—		—
Hawaiian Electric consolidated
Interest paid to non-affiliates	9		9
Income taxes paid (including refundable credits)	—		—
Income taxes refunded (including refundable credits)	—		—
Supplemental disclosures of noncash activities
HEI consolidated
Property, plant and equipment unpaid invoices and accruals for capital expenditures, balance, end of period (investing)	28		32
Reduction of long-term debt from funds previously transferred for repayment (financing)	—		82
Right-of-use assets obtained in exchange for operating lease obligations (investing)	28		19
Common stock issued (gross) for director and executive/management compensation (financing)1	6		14
Hawaiian Electric consolidated
Electric utility property, plant and equipment unpaid invoices and accruals for capital expenditures, balance, end of period (investing)	24		27
Reduction of long-term debt from funds previously transferred for repayment (financing)	—		82
Right-of-use assets obtained in exchange for operating lease obligations (investing)	28		16

1 The amounts shown represent the market value of common stock issued for director and executive/management compensation and withheld to satisfy statutory tax liabilities.

Note 12 · Fair value measurements

Fair value measurement and disclosure valuation methodology. The following are descriptions of the valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial instruments not carried at fair value:

Short-term borrowings—other than bank.  The carrying amount of short-term borrowings approximated fair value because of the short maturity of these instruments.

Investment securities. The fair value of ASB’s investment securities is determined quarterly through pricing obtained from independent third-party pricing services or from brokers not affiliated with the trade. Non-binding broker quotes are infrequent and generally occur for new securities that are settled close to the month-end pricing date. The third-party pricing vendors ASB uses for pricing its securities are reputable firms that provide pricing services on a global basis and have processes in place to ensure quality and control. The third-party pricing services use a variety of methods to determine the fair value of securities that fall under Level 2 of ASB’s fair value measurement hierarchy. Among the considerations are quoted prices for similar securities in an active market, yield spreads for similar trades, adjustments for liquidity, size, collateral characteristics, historic and generic prepayment speeds, and other observable market factors.

To enhance the robustness of the pricing process, ASB will on a quarterly basis compare its standard third-party vendor’s price with that of another third-party vendor. If the prices are within an acceptable tolerance range, the price of the standard vendor will be accepted. If the variance is beyond the tolerance range, an evaluation will be conducted by ASB and a challenge to the price may be made. Fair value in such cases will be based on the value that best reflects the data and observable characteristics of the security. In all cases, the fair value used will have been independently determined by a third-party pricing vendor or non-affiliated broker.

The fair value of the mortgage revenue bonds is estimated using a discounted cash flow model to calculate the present value of future principal and interest payments and, therefore is classified within Level 3 of the valuation hierarchy.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Loans held for sale. Residential and commercial loans are carried at the lower of cost or market and are valued using market observable pricing inputs, which are derived from third party loan sales and, therefore, are classified within Level 2 of the valuation hierarchy.

Loans held for investment. Fair value of loans held for investment is derived using a discounted cash flow approach which includes an evaluation of the underlying loan characteristics. The valuation model uses loan characteristics which includes product type, maturity dates and the underlying interest rate of the portfolio. This information is input into the valuation models along with various forecast valuation assumptions including prepayment forecasts, to determine the discount rate. These assumptions are derived from internal and third party sources. Since the valuation is derived from model-based techniques, ASB includes loans held for investment within Level 3 of the valuation hierarchy.

Collateral dependent loans. Collateral dependent loans have been adjusted to fair value. When a loan is identified as collateral dependent, the Company measures the impairment using the current fair value of the collateral, less selling costs. Depending on the characteristics of a loan, the fair value of collateral is generally estimated by obtaining external appraisals, but in some cases, the value of the collateral may be estimated as having little or no value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. If it is determined that the value of the collateral dependent loan is less than its recorded investment, the Company recognizes this impairment and adjusts the carrying value of the loan to fair value through the allowance for credit losses.

Real estate acquired in settlement of loans. Foreclosed assets are carried at fair value (less estimated costs to sell) and are generally based upon appraisals or independent market prices that are periodically updated subsequent to classification as real estate owned. Such adjustments typically result in a Level 3 classification of the inputs for determining fair value. ASB estimates the fair value of collateral-dependent loans and real estate owned using the sales comparison approach.

Mortgage servicing rights. MSRs are capitalized at fair value based on market data at the time of sale and accounted for in subsequent periods at the lower of amortized cost or fair value. MSRs are evaluated for impairment at each reporting date. ASB's MSRs are stratified based on predominant risk characteristics of the underlying loans including loan type and note rate. For each stratum, fair value is calculated by discounting expected net income streams using discount rates that reflect industry pricing for similar assets. Expected net income streams are estimated based on industry assumptions regarding prepayment expectations and income and expenses associated with servicing residential mortgage loans for others. Impairment is recognized through a valuation allowance for each stratum when the carrying amount exceeds fair value, with any associated provision recorded as a component of loan servicing fees included in "Revenues - bank" in the consolidated statements of income. A direct write-down is recorded when the recoverability of the valuation allowance is deemed to be unrecoverable. ASB compares the fair value of MSRs to an estimated value calculated by an independent third-party. The third-party relies on both published and unpublished sources of market related assumptions and its own experience and expertise to arrive at a value. ASB uses the third-party value only to assess the reasonableness of its own estimate.

Time deposits. The fair value of fixed-maturity certificates of deposit was estimated by discounting the future cash flows using the rates currently offered for FHLB advances of similar remaining maturities. Deposit liabilities are classified in Level 2 of the valuation hierarchy.

Other borrowings. For advances and repurchase agreements, fair value is estimated using quantitative discounted cash flow models that require the use of interest rate inputs that are currently offered for advances and repurchase agreements of similar remaining maturities. The majority of market inputs are actively quoted and can be validated through external sources, including broker market transactions and third party pricing services.

Long-term debt—other than bank.  Fair value of fixed-rate long-term debt—other than bank was obtained from third-party financial services providers based on the current rates offered for debt of the same or similar remaining maturities and from discounting the future cash flows using the current rates offered for debt of the same or similar risks, terms, and remaining maturities. The carrying amount of floating rate long-term debt—other than bank approximated fair value because of the short-term interest reset periods. Long-term debt—other than bank is classified in Level 2 of the valuation hierarchy.

Interest rate lock commitments (IRLCs). The estimated fair value of commitments to originate residential mortgage loans for sale is based on quoted prices for similar loans in active markets. IRLCs are classified as Level 2 measurements.

Forward sales commitments. To be announced (TBA) mortgage-backed securities forward commitments are classified as Level 1, and consist of publicly-traded debt securities for which identical fair values can be obtained through quoted market prices in active exchange markets. The fair values of ASB’s best efforts and mandatory delivery loan sale commitments are determined using quoted prices in the market place that are observable and are classified as Level 2 measurements.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

The following table presents the carrying or notional amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments.

			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
March 31, 2021
Financial assets
HEI consolidated
Available-for-sale investment securities	$	2,305,257	$	—	$	2,289,830	$	15,427	$	2,305,257
Held-to-maturity investment securities	295,046		—		285,599		—		285,599
Loans, net	5,241,925		—		23,637		5,352,496		5,376,133
Mortgage servicing rights	10,685		—		—		13,659		13,659
Derivative assets	103,077		340		745		—		1,085
Financial liabilities
HEI consolidated
Deposit liabilities	514,303		—		516,524		—		516,524
Short-term borrowings—other than bank	100,242		—		100,242		—		100,242
Other bank borrowings	102,685		—		102,684		—		102,684
Long-term debt, net—other than bank	2,229,738		—		2,492,539		—		2,492,539
Derivative liabilities	32,739		—		2,834		—		2,834
Hawaiian Electric consolidated
Long-term debt, net	1,675,863		—		1,904,613		—		1,904,613
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
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

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Fair value measurements on a recurring basis.  Assets and liabilities measured at fair value on a recurring basis were as follows:

	March 31, 2021						December 31, 2020
	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	$	—	$	2,201,352	$	—	$	—	$	1,849,559	$	—
U.S. Treasury and federal agency obligations	—		57,647		—		—		62,322		—
Corporate bonds	—		30,831		—		—		31,351		—
Mortgage revenue bonds	—		—		15,427		—		—		27,185
	$	—	$	2,289,830	$	15,427	$	—	$	1,943,232	$	27,185
Derivative assets
Interest rate lock commitments (bank segment)1	$	—	$	456	$	—	$	—	$	4,536	$	—
Forward commitments (bank segment)1	340		—		—		—		—		—
Interest rate swap (Other segment)2	—		289		—		—		—		—
	$	340	$	745	$	—	$	—	$	4,536	$	—
Derivative liabilities
Interest rate lock commitments (bank segment)1	$	—	$	18	$	—	$	—	$	—	$	—
Forward commitments (bank segment)1	—		—		—		500		—		—
Interest rate swap (Other segment)2	—		2,816		—		—		4,530		—
	$	—	$	2,834	$	—	$	500	$	4,530	$	—

1     Derivatives are carried at fair value in other assets or other liabilities in the balance sheets with changes in value included in mortgage banking income.

2     Derivatives are included in other assets and other liabilities in the balance sheets.

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows:

	Three months ended March 31
Mortgage revenue bonds	2021		2020
(in thousands)
Beginning balance	$	27,185	$	28,597
Principal payments received	(11,758)		—
Purchases	—		129
Unrealized gain (loss) included in other comprehensive income	—		—
Ending balance	$	15,427	$	28,726

Mortgage revenue bonds are issued by the Department of Budget and Finance of the State of Hawaii. The Company estimates the fair value by using a discounted cash flow model to calculate the present value of estimated future principal and interest payments. The unobservable input used in the fair value measurement is the weighted average discount rate. As of March 31, 2021, the weighted average discount rate was 2.07%, which was derived by incorporating a credit spread over the one month LIBOR rate. Significant increases (decreases) in the weighted average discount rate could result in a significantly lower (higher) fair value measurement.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued (Unaudited)

Fair value measurements on a nonrecurring basis.  Certain assets and liabilities are measured at fair value on a nonrecurring basis and therefore are not included in the tables above. These measurements primarily result from assets carried at the lower of cost or fair value or from impairment of individual assets. The carrying value of assets measured at fair value on a nonrecurring basis were as follows:

			Fair value measurements using
(in thousands)	Balance		Level 1		Level 2		Level 3
March 31, 2021
Loans	$	69	$	—	$	—	$	69
Mortgage servicing rights	61		—		—		61
December 31, 2020
Loans	387		—		—		387
Mortgage servicing rights	3,001		—		—		3,001

For the three months ended March 31, 2021 and 2020, there were no adjustments to fair value for ASB’s loans held for sale.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis:

					Significant unobservable  input value (1)
($ in thousands)	Fair value		Valuation technique	Significant unobservable input	Range	Weighted Average
March 31, 2021
Home equity lines of credit	$	69	Fair value of collateral	Appraised value less selling cost	N/A (2)	N/A (2)
Mortgage servicing rights	61		Discounted cash flow	Prepayment speed	17% - 24%	17	%
				Discount rate		9.3	%
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	%

(1) Represents percent of outstanding principal balance.

(2) N/A - Not applicable. There is one asset in each fair value measurement type.

Significant increases (decreases) in any of those inputs in isolation would result in significantly higher (lower) fair value measurements.

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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion updates “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in HEI’s and Hawaiian Electric’s 2020 Form 10-K and should be read in conjunction with such discussion and the 2020 annual consolidated financial statements of HEI and Hawaiian Electric and notes thereto included in HEI’s and Hawaiian Electric’s 2020 Form 10-K, as well as the quarterly (as of and for the three months ended March 31, 2021) condensed consolidated financial statements and notes thereto included in this Form 10-Q.

HEI consolidated

Recent developments—COVID-19.

In 2020, the Company made significant progress on a number of strategic initiatives despite the ongoing impact of COVID-19 on the community, customers, and employees, including advancing the state’s renewable energy transition through Hawaii’s largest-ever renewable energy and storage procurements, preparing for and implementing the new PBR framework to facilitate the renewable energy transition and align the regulatory framework with customer interests and policy goals, and accelerating the Bank’s digital Anytime, Anywhere Banking model.

In 2021, while economic conditions have improved, the Company’s top priority remains unchanged, which is to ensure the continued safety and well-being of customers, employees, their families and the community. The Company’s mandatory work-from-home policy remains in effect through July 30, 2021 for certain employees and this policy has not impaired the Company’s ability to maintain effective internal controls over financial reporting. For personnel that cannot perform their work remotely, the Company has maintained safety protocols and policies to keep employees safe, while at the same time ensuring the reliability and resilience of its operations.

New COVID-19 cases in Hawaii have remained at a relatively low level, approximately 77 average daily new cases in the last seven days per 100,000 residents as of April 27, 2021, and new cases have been on a downtrend since early April. Hawaii vaccinations have increased at a rapid pace, with approximately 37% of the state’s population fully vaccinated as of April 27, 2021. On April 19, the City & County of Honolulu opened vaccinations to all persons age 16 and older, which is expected to further accelerate the pace and proportion of the population vaccinated.

In light of the ongoing global COVID-19 vaccination effort and the gradual reopening of economies, the Company expects that the Hawaii economy will begin to improve at an increasing pace. However, in the first quarter of 2021, kWh sales continue to be impacted and decreased 4.8% compared to the first quarter of 2020 as the demand for electricity continues to remain lower than pre-pandemic levels. While the decrease in kWh sales does not affect Utility revenues due to decoupling, it may increase the price per kWh paid by customers. See “Current Decoupling” in Note 3 of the Condensed Consolidated Financial Statements for a discussion of decoupling. At the Bank, lower net charge offs, improved credit quality as a result of an overall strengthening of the Hawaii economy, and credit upgrades within the commercial loan portfolio resulted in a $8.4 million provision reversal in the first quarter of 2021 to reduce the allowance for credit losses. For further discussion of the impact of the COVID-19 pandemic on our subsidiaries see “Recent Developments—COVID-19” in the Electric Utility and Bank sections below. There has been no material impact on the “Other” segment and Pacific Current as a result of the COVID-19 pandemic as the primary businesses of Pacific Current are supported by PPAs that provide for contractual cash flows with credit-worthy counterparties.

For a discussion regarding the impact of the economic conditions caused by the pandemic on the Company’s liquidity and capital resources, see discussion under “Financial Condition–Liquidity and capital resources,” contained in each of the “HEI Consolidated,” “Electric utility” and “Bank” sections of this MD&A.

Environmental, Social & Governance.

At HEI, environmental, social and governance (ESG) principles and sustainability have long been fundamental values embedded within all aspects of the Company’s activities. With all of its operations in the middle of the Pacific Ocean, the Company’s long-term health, and ability to deliver sustainable value for all stakeholders—including shareholders—is inextricably linked to the well-being of its employees, communities, economy, and environment. That is why the Company sees its mission of being a catalyst for a better Hawaii as advancing the Company’s long-term financial sustainability. The Company has focused on ensuring ESG considerations are appropriately integrated into its governance structures, strategies and risk management. This includes:

•Integration of Board oversight of important ESG matters into its existing governance structures and processes. This includes full Board review of ESG-related strategies, Audit & Risk Committee oversight of ESG risks, Compensation Committee responsibility for ESG-related compensation matters and Nominating & Corporate Governance Committee responsibility for human capital management and for ensuring an appropriate board governance framework is in place with respect to ESG.

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•Robust ESG expertise among board members, including directors with direct experience in renewable energy, climate change policy and strategy, environmental management and sustainable investing.

•Expanded ESG goals as part of HEI and utility executive incentive compensation.

•ESG considerations explicitly woven into strategic planning efforts and enterprise risk management processes.

The Company is committed to transparency and providing information to allow customers, community leaders, investors and other stakeholders understand how the Company’s strategies and operations advance ESG objectives and contribute to long-term value creation.

The Company issued its first ESG report in September 2020. The report encompassed ESG policies, principles and results reported during 2019 across the Company’s two primary operating subsidiaries, Hawaiian Electric and ASB, and was aligned with Sustainability Accounting Standards Board (SASB) guidance—using the electric utilities standard for Hawaiian Electric, and the commercial banks, commercial finance, and mortgage finance standards for ASB. On April 22, 2021, the Company issued its second ESG report. This report continues to include SASB disclosures for Hawaiian Electric and ASB and incorporates disclosures regarding risks and opportunities related to climate change, as well as associated risk management and governance processes, based on recommendations from the Task Force on Climate-related Financial Disclosures. It also outlines key impacts for the Company under two climate scenarios, including a scenario targeted to limit global temperature rise to 2 degrees Celsius or lower. The Company’s ESG reports can be found at www.hei.com/esg.

RESULTS OF OPERATIONS

	Three months ended March 31				%
(in thousands)	2021		2020		change	Primary reason(s)*
Revenues	$	642,946	$	677,186	(5)	Decrease for the electric utility and bank segments
Operating income	98,031		59,702		64	Increase for the electric utility and bank segments, partly offset by higher operating losses at the other segment
Net income for common stock	64,358		33,420		93	Increase due to higher net income at the electric utility and bank segments, partly offset by higher net loss at the other segment. See below for effective tax rate explanation

*     Also, see segment discussions which follow.

The Company’s effective tax rates for the first three months of 2021 and 2020 were 19% and 15%, respectively. The effective tax rates were higher for the three months ended March 31, 2021 compared to the same period in 2020 due primarily to higher excess tax benefits related to vesting of share-based awards in 2020.

Economic conditions.

Note: The statistical data in this section is from public third-party sources that management believes to be reliable (e.g., Department of Business, Economic Development and Tourism (DBEDT), University of Hawaii Economic Research Organization (UHERO), Department of Health of the State of Hawaii , U.S. Bureau of Labor Statistics, Department of Labor and Industrial Relations (DLIR), Hawaii Tourism Authority (HTA), Honolulu Board of REALTORS® and national and local news media).

The CARES Act was passed by Congress and signed into law on March 27, 2020. The economic relief package totals more than $2 trillion and provides direct economic support to businesses and individuals. On December 27, 2020, the President signed into law the $900 billion economic stimulus package that provides, among others, direct payments to qualifying individuals, extended unemployment benefits, and additional small business aid. On March 11, 2021, the President signed into law the $1.9 trillion coronavirus relief package. The plan will send direct payments of up to $1,400 to most Americans. The bill will also extend a $300 per week unemployment insurance boost until September 6 and expand the child tax credit for a year. It will also put nearly $20 billion into COVID-19 vaccinations, $25 billion into rental and utility assistance, and $350 billion into state, local and tribal relief. Hawaii has received a significant amount of funds through these various federal assistance programs that will help attenuate the impact to Hawaii’s economy.

In September 2020, the City and County of Honolulu announced a framework for reducing the spread of COVID-19 on Oahu, which tracks metrics that dictate the extent of restrictions on businesses and activities. There are four tiers with Tier 1 being the most restrictive. The minimum amount of time spent in each tier is four weeks. In order to move to the next higher tier, the last two weeks of a tier must meet the higher tier’s criteria. If a lower tier’s average daily case count is realized for two weeks in a row, the county will move back to the lower tier for a minimum of four weeks. On February 25, 2021, the county of Honolulu moved from Tier 2 to Tier 3, which allows greater density for business and other social activities. Since that time,

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case counts have increased modestly such that the 7-day average new case counts have fallen between 50-100, which is consistent with the Tier 2 level, but the governor and mayor agreed to remain in Tier 3 for the next four weeks as vaccinations are more widely administered. As of April 27, 2021, approximately 37% of the state’s population have been fully vaccinated.

See “Recent Developments—COVID-19” in the “Electric utility” and “Bank” sections below for further discussion of the economic impact caused by the pandemic.

Hawaii’s tourism industry, a significant driver of Hawaii’s economy, suffered dramatically with a 73.8% reduction in total visitor arrivals in 2020 compared with 2019. Starting October 15, 2020, the state launched its Safe Travels Program that allows travelers to avoid the mandatory 14-day quarantine if they test negative for COVID-19 within 72 hours of departure. Since the launch of the program, the average daily passenger arrivals have gradually improved, but remain below pre-pandemic levels. For the first quarter of 2021, passenger counts were 56.2% lower than the comparable period in the prior year, which included pre-pandemic travel activity, and averaged 11,018 passengers per day. However, with the ongoing vaccination efforts across the nation and the implementation of the Safe Travels Program, average daily passenger counts have steadily increased throughout the quarter, with March counts 117% above January counts and a new 2021 year-to-date high of 22,913 daily visitor arrivals was achieved on April 3, 2021.

Due to the effects of the measures to contain the COVID-19 pandemic, Hawaii’s seasonally adjusted unemployment rate in March 2021 was 9.0%, which was substantially higher compared to the March 2020 rate of 2.1%. The national unemployment rate in March 2021 was 6.0% compared to 4.4% in March 2020. Hawaii’s unemployment rate is expected to gradually improve now that restrictions on travel have been reduced significantly and vaccine distribution has progressed.

Hawaii real estate activity through March 2021, as indicated by Oahu’s home resale market, drove an increase in the median sales price of 5.8% for condominiums and 17.3% for single family homes compared to the same period in 2020. The number of closed sales was up 32.5% for condominiums and up 11.9% for single family residential homes for the first three months of 2021 compared the same period in 2020.

Hawaii’s petroleum product prices reflect supply and demand in the Asia-Pacific region and the price of crude oil in international markets. The price of crude oil gradually increased during the 4th quarter of last year and the trend has continued during the first two months of this year.

At its March 17, 2021 meeting, the Federal Open Market Committee (FOMC) decided to maintain the federal funds rate target range of 0%-0.25%. The FOMC plans to continue to maintain an accommodative stance of monetary policy to achieve maximum employment and inflation at the rate of 2 percent over the long run. The Federal Reserve stated that it will increase its holdings of Treasury securities and agency mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions, thereby supporting the flow of credit to households and businesses.

The most recent interim forecast by UHERO, which was issued on March 5, 2021, forecasts full year 2021 real GDP growth of 3.7%, increase in total visitor arrivals of 81.8%, decrease in real personal income of -1.1%, and an unemployment rate of 7.1%. This forecast reflects an acceleration of the pace of the recovery of the Hawaii economy as compared to the prior forecast, but a full recovery is still several years out.

The Company expects that if economic conditions worsen from current levels or remain depressed for an extended period of time, it could have a material unfavorable impact on the Company’s net revenues or income from continuing operations in 2021.

“Other” segment.

	Three months ended March 31
(in thousands)	2021		2020		Primary reason(s)
Revenues	$	951	$	6	Increase in other sales at Pacific Current subsidiaries.
Operating loss	(6,379)		(3,659)		The operating income for the first three months of 2021 from Pacific Current1 was comparable to the same period in 2020. Corporate expenses for the first three months of 2021 was $2.5 million higher than the same period in 2020, primarily due to higher charitable donations and incentive compensation.
Net loss	(8,556)		(6,246)		The net loss for the first three months of 2021 was higher than the net loss for the first three months of 2020 due to the same factors cited for the change in operating loss.

1     Hamakua Energy’s sales to Hawaii Electric Light (a regulated affiliate) are eliminated in consolidation.

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The “other” business segment loss includes results of the stand-alone corporate operations of HEI (including eliminations of intercompany transactions) and ASB Hawaii, Inc. (ASB Hawaii), as well as the results of Pacific Current, a direct subsidiary of HEI focused on investing in clean energy and sustainable infrastructure projects; Pacific Current’s indirect subsidiary, Hamakua Energy, which owns a 60-MW combined cycle power plant that provides electricity to Hawaii Electric Light; Pacific Current’s subsidiaries, Mauo, LLC (Mauo), which owns solar-plus-storage projects totaling 8.6 MW on five University of Hawaii campuses; and Ka‘ie‘ie Waho Company, LLC, which owns a 6 MW solar photovoltaic system that provides renewable energy to Kauai Island Utility Cooperative; as well as eliminations of intercompany transactions.

FINANCIAL CONDITION

Liquidity and capital resources.  As of March 31, 2021, there was no balance on HEI’s revolving credit facility or Hawaiian Electric’s revolving credit facilities and the available committed capacity under the facilities was $150 million and $275 million, respectively. On April 19, 2021, Hawaiian Electric’s $75 million 364-day revolving credit agreement terminated and was not renewed. At the end of the quarter, HEI and Hawaiian Electric had approximately $100 million and nil of commercial paper outstanding, respectively. As of March 31, 2021, ASB’s unused FHLB borrowing capacity was approximately $2.0 billion and ASB had unpledged investment securities of $2.0 billion.

The Company expects that its liquidity will continue to be moderately impacted at the Utilities due to COVID-19. For the Utilities, the high level of unemployment in the state and the moratorium on customer disconnections (which moratorium is currently in place through May 31, 2021) are expected to result in higher accounts receivable balances, bad debt expense and write-offs. Additionally, lower kWh sales generally result in delayed timing of cash flows, resulting in higher working capital requirements (see “Recent Developments—COVID-19” in the Electric utility section below). At ASB, liquidity remains at satisfactory levels largely due to U.S. economic stimulus programs implemented as a result of COVID-19 that led to a substantial increase in customer deposits. ASB’s cash and cash equivalents was $224 million as of March 31, 2021, compared to $293 million as of December 31, 2020. ASB remains well above the “well capitalized” level, and while the economic outlook has improved, there continues to be uncertainty regarding COVID-19’s impact on loan performance and the allowance for credit losses (see “Recent Developments — COVID-19” in the Bank section below).

On January 14, 2021, the Utilities received $115 million of proceeds using a delayed draw feature under a private placement executed on October 29, 2020 and used the funds to finance capital expenditures and reimburse funds used for the payment of capital expenditures.

On January 28, 2021, HEI received $46 million of proceeds using a delayed draw feature under a private placement executed on November 17, 2020. The proceeds were used to repay the remaining balance of $15 million on HEI’s $65 million 364-day term loan, with the remainder used to pay down commercial paper balances and prefund maturing debt. The second tranche of $29 million was drawn on April 16, 2021 and was used to pay down HEI’s commercial paper balances.

As of March 31, 2021 and December 31, 2020, the total amount of available borrowing capacity (net of commercial paper outstanding) under the Company’s committed lines of credit was approximately $325 million and $360 million, respectively.

The Company believes that its ability to generate cash, both internally from electric utility and banking operations and externally from issuances of equity and debt securities, as well as bank borrowings, is adequate to maintain sufficient liquidity to fund its contractual obligations and commercial commitments, its forecasted capital expenditures and investments, its expected retirement benefit plan contributions and other cash requirements. However, the COVID-19 pandemic is an evolving situation, and the Company cannot predict the extent or duration of the outbreak, the future effects that it will have on the global, national or local economy, including the impact on the Company’s cost of capital and its ability to access additional capital, or the future impacts on the Company’s financial position, results of operations, and cash flows. See Item 1A. “Risk Factors” in Part II for further discussion of risks and uncertainties.

The consolidated capital structure of HEI (excluding deposit liabilities and other bank borrowings) was as follows:

(dollars in millions)	March 31, 2021				December 31, 2020
Short-term borrowings—other than bank	$	100	2	%	$	129	3	%
Long-term debt, net—other than bank	2,230		48		2,119		46
Preferred stock of subsidiaries	34		1		34		1
Common stock equity	2,321		49		2,338		50
	$	4,685	100	%	$	4,620	100	%

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HEI’s commercial paper borrowings and line of credit facility were as follows:

	Average balance		Balance
(in millions)	Three months ended March 31, 2021		March 31, 2021		December 31, 2020
Commercial paper	$	47	$	100	$	65
Line of credit draws	—		—		—
Undrawn capacity under HEI’s line of credit facility			150		150

Note: This table does not include Hawaiian Electric’s separate commercial paper issuances and line of credit facilities and draws, which are disclosed below under “Electric utility—Financial Condition—Liquidity and capital resources.” The maximum amount of HEI’s short-term commercial paper borrowings during the first three months of 2021 was $100 million.

On March 17, 2021, Standard & Poor’s (S&P) revised HEI’s outlook to stable from positive and affirmed the “BBB-” issuer credit rating and “A-3” short-term and commercial paper ratings. On April 20, 2021, Moody’s Investor Service’s (Moody’s) upgraded HEI’s short-term rating for commercial paper to “P-2” from “P-3” and revised the outlook to stable from positive.

HEI has a $150 million line of credit facility with no amounts outstanding at March 31, 2021. See Note 5 of the Condensed Consolidated Financial Statements.

There were no new issuances of common stock through the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP), HEIRSP or the ASB 401(k) Plan in the three months ended March 31, 2021 and 2020 and HEI satisfied the share purchase requirements of the DRIP, HEIRSP and ASB 401(k) Plan through open market purchases of its common stock.

For the first three months of 2021, net cash provided by operating activities of HEI consolidated was $42 million. Net cash used by investing activities for the same period was $518 million, primarily due to capital expenditures, ASB’s purchases of available-for-sale and held-to maturity investment securities, partly offset by ASB’s receipt of repayments from investment securities, proceeds from the sale of investment securities and net decrease in loans. Net cash provided by financing activities during this period was $409 million as a result of several factors, including net increases in ASB’s deposit liabilities and other bank borrowings, the issuances of long-term debt and net increases in short-term borrowings, partly offset by repayment of short-term and long-term debt and payment of common stock dividends. During the first three months of 2021, Hawaiian Electric and ASB (through ASB Hawaii) paid cash dividends to HEI of $28 million and $5 million, respectively.

Dividends.  The payout ratios for the first three months of 2021 and full year 2020 were 58% and 64%, respectively. On February 9, 2021, the HEI Board of Directors approved a 1 cent increase in the quarterly dividend from $0.33 per share to $0.34 per share, starting with the dividend in the first quarter of 2021. HEI currently expects to maintain its dividend at its present level; however, the HEI Board of Directors evaluates the dividend quarterly and considers many factors in the evaluation including, but not limited to, the Company’s results of operations, the long-term prospects for the Company and current and expected future economic conditions, including impacts from the COVID-19 pandemic.

MATERIAL ESTIMATES AND CRITICAL ACCOUNTING POLICIES

In preparing financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ significantly from those estimates.

In accordance with SEC Release No. 33-8040, “Cautionary Advice Regarding Disclosure About Critical Accounting Policies,” management has identified the accounting policies it believes to be the most critical to the Company’s financial statements—that is, management believes that these policies are both the most important to the portrayal of the Company’s results of operations and financial condition, and currently require management’s most difficult, subjective or complex judgments.

For information about these material estimates and critical accounting policies, in addition to the critical policy discussed below, see pages 42 to 44, 58 to 59, and 72 to 74 of HEI’s MD&A included in Part II, Item 7 of HEI’s 2020 Form 10-K.

Following are discussions of the results of operations, liquidity and capital resources of the electric utility and bank segments.

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Electric utility

Recent developments—COVID-19

See also Recent developments—COVID-19 in HEI’s MD&A.

Economic conditions in Hawaii have begun to improve in 2021 as vaccination efforts advance and businesses are allowed to operate with fewer restrictions. Statewide daily passenger counts have improved dramatically, reaching a year-to-date high of 22,913 passengers per day on April 3, 2021, but still 28% below the comparable Saturday in 2019. At the end of March, statewide unemployment improved to 9% from 10.3% at the end of the year. While economic activity has increased, the demand for electricity remains lower than pre-pandemic levels. In the first quarter of 2021, kWh sales were down 4.8% compared with the same quarter in 2020. The Utilities expect kWh sales to gradually improve throughout 2021 as the COVID-19 vaccine is more widely distributed and administered, which would allow the economy in Hawaii to fully reopen.

While the Utilities’ electric energy revenues have not been significantly impacted due to the decoupling mechanism, which allows recovery of the difference between PUC approved target revenues and recorded adjusted revenues regardless of the level of kWh sales, the timing of customer collections would be delayed (or accelerated) if the level of kWh sales decreases below (or increases above) the estimated kWh sales. See “Current Decoupling” in Note 3 of the Condensed Consolidated Financial Statements for a discussion of decoupling. Annually, the Utilities submit a decoupling filing to the PUC, which requests recovery by the utility (or refund to customers) of the difference between recorded adjusted revenues and target revenues under the RBA. The difference is collected or refunded through an adjustment to customer rates in the following year based on estimated sales, starting on June 1st of that following year, which has an impact on the timing of the Utilities’ cash flow. Additionally, although the Utilities’ decoupling mechanism allows for collection under the RBA, the RBA balance accrues interest only at the short-term debt rate from the last rate case (2.5% for Hawaiian Electric, 3.75% for Hawaii Electric Light and 3.0% for Maui Electric). As of March 31, 2021, the RBA balance related to decoupling revenues was approximately $25.9 million, compared to $7.6 million as of December 31, 2020. The billed accounts receivable balances, net of allowance for doubtful accounts, of $142 million and as of March 31, 2021 is 4.2% lower than the billed accounts receivable balances as of December 31, 2020, primarily driven by an improvement in economic conditions from reopening, application of available assistance from various government and community programs, including the Hawaii Utility Bill Assistance Program, which was launched in the first quarter of 2021 and provided funding to Hawaiian Electric customers and other utility companies. The past due accounts receivable balance has decreased by $8 million or 15% since December 31, 2020 with a corresponding decrease in the number of accounts past due by approximately 10% for the same period. While the moratorium on customer disconnections is currently in place through May 31, 2021, efforts are ongoing to continue working with customers on payment plans and other bill assistance for customers through funding from non-profit organizations, as well as state and county relief programs. To address the financing requirement related to the delayed timing of cash flows collected under the decoupling mechanism through the RBA and the modest slowing or reduction in accounts receivable collections from customers, the Utilities have completed a number of steps in 2020 to enhance their liquidity position. See “Financial Condition—Liquidity and capital resources” for additional information.

The Utilities provide an essential service to the State of Hawaii, and have continued to operate to protect the health and safety of employees and customers and to ensure system reliability, and have been following the Governor’s directive that the Utilities take necessary measures to ensure they can operate in the normal course. The Utilities have also implemented certain aspects of their business continuity plans, which includes the activation of its Incident Management Team to closely manage the response to the pandemic and have implemented practices related to employee and facilities hygiene in order to ensure the reliability and resilience of their operations.

In the second quarter of 2020, the PUC approved the deferral of certain COVID-19 related costs, such as higher bad debt expense, higher financing costs, non-collection of late payment fees, increased personal protective equipment costs, and sequestration costs for mission-critical employees. As of March 31, 2021, these costs, which have been deferred and recorded as a regulatory asset, totaled approximately $22.2 million (see also discussion under Item 1A. “Risk Factors” and “Regulatory assets for COVID-19 related costs” in Note 3 of the Condensed Consolidated Financial Statements). Looking forward, while the distribution and administration of the COVID vaccine is expected to hasten the reopening of the Hawaii economy, the prolonged impact of COVID-19 could adversely affect the ability of the Utilities’ contractors, suppliers, IPPs, and other business partners to perform or fulfill their obligations, or require modifications to existing contracts, which could adversely affect the Utilities’ business, increase expenses, and impact the Utilities’ ability to achieve their RPS goals. Additionally, while the state’s aggressive response to the pandemic has dramatically reduced the spread of the coronavirus, the measures taken have had a severe economic impact on the state’s businesses and residents, which may influence the PUC’s actions regarding future rate increases. See “Item 1A. Risk Factors” in Part II for additional discussion of risks.

For a discussion regarding the impact of the economic conditions caused by the COVID-19 pandemic on the Utilities’ liquidity and capital resources, see discussion under “Financial Condition–Liquidity and capital resources.”

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RESULTS OF OPERATIONS

Three months ended March 31				Increase
2021		2020		(decrease)				(dollars in millions, except per barrel amounts)
$	565	$	597	$	(33)			Revenues. Net decrease largely due to:
						$	(51)	lower fuel oil prices and lower kWh generated1
						7		higher revenues from annual RAM adjustments
						6		increase related solely to a change in the timing for revenue recognition within the year, which eliminates seasonality in recognizing target revenues and results in recognizing revenues evenly throughout the year with target revenues recognized on an annual basis remaining unchanged
						2		higher PPAC revenue2
						2		lower ERP system implementation benefits to be passed on to customers in future rates
						1		higher kWh purchased2
127		173		(46)				Fuel oil expense1. Decrease largely due to lower fuel oil prices and lower kWh generated
142		140		2				Purchased power expense1 ,2. Net increase largely due to higher kWh purchased and higher minimum charges
115		128		(13)				Operation and maintenance expenses. Net decrease largely due to:
						(3)		lower labor due to lower staffing and reduction in overtime
						(2)		higher bad debt expense in the first quarter of 2020 related to the economic impact of COVID-19 pandemic on customers (PUC’s approval of deferral to regulatory asset started in the second quarter of 2020)
						(2)		fewer generating facility overhauls due to timing but to be performed later in 2021
						(2)		lower pension service cost due to reset of pension cost included in rates as part of Hawaiian Electric final rate case decision
						(2)		lower outside service costs
						(1)		increase in Pearl Harbor environmental reserves in 2020
						(1)		lower medical premium costs due to lower staffing
111		113		(2)				Other expenses. Decrease due to lower revenue taxes offset in part by higher depreciation expense in 2021 for plant investment in 2020
69		44		25				Operating income. Increase due to lower operation and maintenance expenses coupled with higher electric rates, offset in part by higher depreciation expense
55		30		25				Income before income taxes. Increase due to lower operation and maintenance expense, higher electric rates, and lower pension non-service costs, offset by higher interest expense related to new long term debt issued in May 2020 and January 2021 and higher depreciation expense
43		24		19				Net income for common stock. Increase due to lower operating expenses, coupled with higher electric rates
1,909		2,006		(97)				Kilowatthour sales (millions)3
$	63.87	$	80.78	$	(16.91)			Average fuel oil cost per barrel
468,745		465,787		2,958				Customer accounts (end of period)

1The rate schedules of the electric utilities currently contain ECRCs through which changes in fuel oil prices and certain components of purchased energy costs are passed on to customers.

2The rate schedules of the electric utilities currently contain PPACs through which changes in purchased power expenses (except purchased energy costs) are passed on to customers.

3 kWh sales were lower when compared to the same periods last year largely due to the effects of the COVID-19 pandemic. The reduction to visitor arrivals due to the Safe Travels requirements significantly impacted the tourism industry. This combined with restrictions on business and activities, led to high unemployment, and shuttered many businesses and hotels. As restrictions are eased, vaccination rates increase and more visitors arrive, sales are expected to slowly rebound but remain lower than pre-pandemic levels.

The Utilities’ effective tax rates for the first three months of 2021 and 2020 were at 20% and 18%, respectively. The effective tax rate was higher for the three months ended March 31, 2021 compared to the same period in 2020 due primarily to higher excess tax benefits related to vesting of share-based awards in 2020.

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Hawaiian Electric’s consolidated ROACE was 9.0% and 7.4% for the twelve months ended March 31, 2021 and March 31, 2020, respectively.

The net book value (cost less accumulated depreciation) of utility property, plant and equipment (PPE) as of March 31, 2021 amounted to $4.7 billion, of which approximately 27% related to generation PPE, 64% related to transmission and distribution PPE, and 9% related to other PPE. Approximately 9% of the total net book value relates to generation PPE that has been deactivated or that the Utilities plan to deactivate or decommission. 

See “Economic conditions” in the “HEI Consolidated” section above.

Executive overview and strategy.  The Utilities provide electricity on all the principal islands in the state, other than Kauai, to approximately 95% of the state’s population and operate five separate grids. The Utilities’ mission is to provide innovative energy leadership for Hawaii, to meet the needs and expectations of customers and communities, and to empower them with affordable, reliable and clean energy. The goal is to create a modern, resilient, flexible and dynamic electric grid that enables an optimal mix of distributed energy resources, such as private rooftop solar, demand response and grid-scale resources to enable the creation of smart, sustainable, resilient communities and achieve the statutory goal of 100% renewable energy by 2045.

Performance-based regulations. On December 23, 2020, the PUC issued a D&O (PBR D&O) approving a new performance-based regulation framework (PBR Framework). See “Regulatory proceedings” under “Commitments and contingencies” in Note 3 of the Condensed Consolidated Financial Statements.

Transition to renewable energy.  The Utilities are fully committed to a 100 percent renewable energy future for Hawaii and are partnering with the State of Hawaii in achieving their Renewable Portfolio Standard goal of 100% renewable energy by 2045. Hawaii’s RPS law requires electric utilities to meet an RPS of 30%, 40%, 70% and 100% by December 31, 2020, 2030, 2040 and 2045, respectively.

The Utilities have made significant progress on the path to clean energy and have been successful in adding significant amounts of renewable energy resources to their electric systems and exceeded the 2015 RPS goal two years early. The Utilities’ RPS for 2020 was 34.5%, which was in excess of the statutory goal of 30%. The Utilities will continue to actively procure additional renewable energy post-2020 and expect to meet or exceed the next statutory RPS goal of 40% in advance of the 2030 compliance year. (See “Developments in renewable energy efforts” below).

If the Utilities are not successful in meeting the RPS targets as mandated by law, the PUC could assess a penalty of $20 for every MWh that an electric utility is deficient. Based on the level of electricity sales in 2020, a 1% shortfall in meeting the 2030 RPS requirement of 40% would translate into a penalty of approximately $1.6 million. The PUC has the discretion to reduce the penalty due to events or circumstances that are outside an electric utility’s reasonable control, to the extent the event or circumstance could not be reasonably foreseen and ameliorated. In addition to penalties under the RPS law, failure to meet the mandated RPS targets would be expected to result in a higher proportion of fossil fuel-based generation than if the RPS target had been achieved, which in turn would be expected to subject the Utilities to limited commodity fossil fuel price exposure under a fuel cost risk-sharing mechanism. The fuel cost risk-sharing mechanism apportions 2% of the fuel cost risk to the utilities (and 98% to ratepayers) and has a maximum exposure (or benefit) of $3.7 million.

The Utilities are fully aligned with, and supportive of, state policy to achieve a 100% renewable energy future and have made significant progress in its transformation. This alignment with state policy is reflected in management compensation programs and the Utilities’ long-range plans, which include aspirational targets in order to catalyze action and accelerate the transition away from fossil fuels at a pace more rapid than dictated by current law. The long-range plans, including aspirational targets, serve as guiding principles in the Utilities’ continued transformation, and are updated regularly to adapt to changing technology, costs and other factors. While there is no financial penalty for failure to achieve the Utilities’ long-range aspirational objectives, the Utilities recognize that there is an environmental and social cost from the continued use of fossil fuels.

The State of Hawaii’s policy is supported by the regulatory framework and includes a number of mechanisms designed to maintain the Utilities’ financial stability during the transition toward the State’s 100% renewable energy future. Under the sales decoupling mechanism, the Utilities are allowed to recover from customers, target test year revenues, independent of the level of kWh sales, which have generally declined (with the exception of 2019 and the first quarter of 2020), as privately-owned distributed energy resources have been added to the grid and energy efficiency measures have been put into place. Other regulatory mechanisms reduce regulatory lag, such as the rate adjustment mechanism to provide revenues for escalation in certain O&M expenses and rate base changes between rate cases, and the major project interim recovery mechanism, which allow the Utilities to recover and earn on certain approved major capital projects placed into service in between rate cases. Certain mechanisms were replaced or modified under the new PBR framework. See “Regulatory proceedings” under “Commitments and contingencies” and “Current Decoupling” in Note 3 of the Condensed Consolidated Financial Statements.

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Integrated Grid Planning. Achieving 100% renewable energy will require modernizing the grid through coordinated energy system planning in partnership with local communities and stakeholders. To accomplish this, the Utilities filed their Integrated Grid Planning (IGP) Report with the PUC on March 1, 2018, which provides an innovative systems approach to energy planning intended to yield the most cost-effective renewable energy pathways that incorporates customer and stakeholder input.

In March 2019, the PUC accepted the Utilities’ IGP Work plan submitted on December 14, 2018, which describes the timing and scope of major activities that will occur in the IGP process. The IGP utilizes an inclusive and transparent Stakeholder Engagement model to provide an avenue for interested parties to engage with the Utilities and contribute meaningful input throughout the IGP process. The IGP Stakeholder Council, Technical Advisory Panel and Working groups have been established and meet regularly to provide feedback and input on specific issues and process steps in the IGP. In March 2020, the Utilities launched a broad public engagement program, which consisted of a combination of in-person and online engagement. This provided customers opportunities to connect with the IGP team. The Utilities submitted an updated IGP work plan to the PUC in January 2021, marking the significant progress made through the stakeholder engagement phase of the IGP process. The Utilities will use the stakeholder feedback and input as it enters the next phase of the process which includes the development of long-range integrated grid plans and the acquisition of new resources.

Demand response programs. Pursuant to PUC orders, the Utilities are developing an integrated Demand Response (DR) Portfolio Plan that will enhance system operations and reduce costs to customers. The reduction in cost for the customer will take the form of either rates or incentive-based programs that will compensate customers for their participation individually, or by way of engagements with turnkey service providers that contract with the Utilities to aggregate and deliver various grid services on behalf of participating customers and their distributed assets.

In October 2017, the PUC approved the Utilities’ request made in December 2015 to defer and recover certain computer software and software development costs for a DR Management System in an amount not to exceed $3.9 million, exclusive of allowance for funds used during construction, through the REIP Surcharge. The Utilities placed the DR Management System in service in the first quarter of 2019. On October 30, 2019, the Utilities filed the final cost report, reflecting total project costs of $3.7 million. On February 27, 2020, the PUC approved the Utilities’ request to recover deferred and other related costs of the DR Management System through the REIP Surcharge effective March 1, 2020 until such costs are included in determining base rates. On June 26, 2020, the Utilities submitted an updated REIP rate effective August 1, 2020 to the PUC.

On January 25, 2018, the PUC approved the Utilities’ revised DR Portfolio tariff structure. The PUC supported the approach of working with aggregators to implement the DR portfolio. In 2019, the Utilities signed a multi-year Grid Services Purchase Agreement (GSPA) with a third party aggregator. These contracts pay service providers to aggregate grid-supporting capabilities from customer-sited Distributed Energy Resources. The first of these five-year contracts has been executed (PUC approval obtained on August 9, 2019) and is expected to deliver not only benefits through efficient grid operations, but also avoided fuel costs over that 5-year period. The Utilities selected the next set of aggregators in the first quarter of 2020, commenced GSPA contract negotiations, and filed two executed contracts on July 9, 2020. This complements the Utilities’ transformation and supports customer choice. The GSPA contracts were approved by the PUC on December 31, 2020.

Grid modernization. The overall goal of the Grid Modernization Strategy is to deploy modern grid investments at an appropriate priority, sequence and pace to cost-effectively maximize flexibility, minimize the risk of redundancy and obsolescence, deliver customer benefits and enable greater distributed energy resources and renewable energy integration. Under the Grid Modernization Strategy, the Utilities expect that new technology will help increase adoption of private rooftop solar and make use of rapidly evolving products, including storage and advanced inverters. The Utilities have begun work to implement the Grid Modernization Strategy Phase 1, which received PUC approval on March 25, 2019. The estimated cost for this initial phase is approximately $86 million and is expected to be incurred over five years. As of March 31, 2021, approximately $18 million has been incurred to date under Phase 1. The Utilities submitted a proportional advanced meter opt-out deployment filing on September 30, 2020 in an effort toward broader and faster deployment, which was approved by the PUC on March 4, 2021.

The Utilities filed an application with the PUC on September 30, 2019 for an Advanced Distribution Management System (ADMS) as part of the second phase of their Grid Modernization Strategy implementation. However, on December 30, 2019, the PUC suspended the Utilities’ application for the Advanced Distribution Management System pending the Utilities’ filing of a supplemental application for the broad deployment of field devices. This supplement and update to the Grid Mod Phase 2 field devices application was filed on March 31, 2021. The estimated cost for the implementation over five years of the ADMS and field devices, which includes capital, deferred and O&M costs, is $105 million. A PUC order resuming the proceeding is pending.

Community-based renewable energy. In December 2017, the PUC adopted a community-based renewable energy (CBRE) program framework which allows customers who cannot, or chose not to, take advantage of private rooftop solar to receive the

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benefits of renewable energy to help offset their monthly electric bills and support clean energy for Hawaii. The program has two phases.

The first phase, which commenced in July 2018, totals 8 MW of solar photovoltaic (PV) only with one credit rate for each island, closed on April 9, 2020.

By PUC order, CBRE Phase 2 commenced on April 9, 2020 with the goal to develop a robust CBRE market with competitive pricing anticipating that clean energy projects and programs, such as CBRE, can meaningfully contribute to the State’s recovery from the COVID-19 emergency. CBRE Phase 2 capacity is substantially larger than Phase 1 and allows up to 235 MW across all Hawaiian Electric service territories in two tranches. The capacities are allocated by island and allow for small (under 250 kW) and large system sizes to encourage a variety of system sizes. In addition to the first-come, first-served process offered in Phase 1, the majority of the 235 MW will be awarded to projects selected through a competitive process. To provide opportunities for low- to moderate-income (LMI) customers to participate in the program, separate project proposals may be submitted specifically targeting LMI customers.

Eight RFPs were required by order: one each for Oahu, Maui, Hawaii Island, Molokai, and Lanai, and LMI-specific RFPs for Oahu, Maui, and Hawaii Island. Draft RFPs for the three LMI RFPs and the RFPs for Molokai, and Lanai were filed on July 9, 2020, along with a revised tariff and associated contract models. LMI projects do not have a size cap nor do they decrease the 235 MW capacity available to other projects. In addition to its administrative role, the Utilities and their affiliates are eligible to participate in the solicitations, with the exception of the LMI-specific RFPs, where the PUC will only consider a utility self-build option if there are no successful competitive bids for an LMI project on one island or more. The Utilities will also have opportunities to earn based on shared savings mechanisms for specific solicitations. Comments were received during and after a Technical Conference hosted by the PUC on July 28, 2020. Proposed final drafts of the LMI RFPs, Molokai and Lanai RFPs tariff, and contracts were filed on September 8, 2020.

For Lanai, the Utilities proposed to combine the previously issued Variable Renewable Dispatchable Generation Paired with Energy Storage RFP and the CBRE RFP to optimize the benefits of procuring renewable energy, spurring development and increasing the likelihood of success of the CBRE Program on Lanai. As proposed, the Lanai CBRE RFP allows the Utilities to continue collaborating with the majority landowner, Pulama Lanai, who has designated a new larger predetermined site to facilitate expeditious development of a renewable energy project that meets the objectives of both RFPs, while reducing the cost of a project by leveraging economies of scale and coordinating interconnection to the grid. On February 10, 2021, Pulama Lanai filed a letter requesting that the Final RFP be issued for Lanai, or, in the alternative, that separate proposals be allowed for CBRE and non-CBRE portions. On February 17, 2021, the Utilities filed comments in response requesting the PUC’s support of the combined RFP.

Drafts of the remaining RFPs on Oahu, Maui, and Hawaii Island were filed on October 9, 2020. A technical conference was held on October 28, 2020 and proposed final drafts were filed on December 1, 2020.

For small CBRE projects less than 250 kW in size, the Utilities are planning to accept projects over a four-month period on a first-come, first served basis as soon as the PUC approves the Utilities’ final tariff and contracts, filed on September 8, 2020. The PUC reserved 30 MW as well as a small amount of unallocated capacity from Phase 1 for small projects in Phase 2 on Oahu, Maui and Hawaii Island. If applications exceed the program capacity for that island, then a reverse auction process called Competitive Credit Rate Procurement will be triggered to allocate project capacity and determine the credit rate. The Utilities have developed a CBRE Portal where customers can subscribe to a project once the Subscriber Organization has added their project to the portal.

In January 2021, the PUC directed the Utilities to collaborate with the parties to develop recommended improvements to the interconnection process and certain other elements of the CBRE program within sixty days, or by March 30, 2021. Prior to this Order, the Utilities were already working on interconnection improvements and proposed several ways to potentially improve the time and cost of interconnection during the development of the CBRE Phase 2 tariff and RFPs. As directed by the Order, the Utilities increased their focus and attention on this area and worked with the parties, including the CBRE Independent Observer, to make the interconnection process more transparent, predictable and standardized, including interconnection costs, timelines and requirements in order to reduce costs and accelerate schedules. In addition, the Utilities researched interconnection solutions in other jurisdictions, and worked with the parties to identify additional improvements. The Utilities solicited from the parties a list of recommended improvements, and consolidated and adopted nearly all the near-term and continuous improvement recommendations from the parties. The Utilities filed these recommendations and associated updates to the previously filed RFPs, tariff, and contracts on March 30, 2021. These documents are pending review and approval by the PUC.

Microgrid services tariff proceeding. In July 2018, the PUC opened a proceeding to investigate establishment of a microgrid services tariff, pursuant to Act 200 of 2018. There are currently five intervenors in the docket, although initially there were eight. In August 2019, the PUC issued an order focusing for the remainder of the docket is to facilitate the ability of

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microgrids to disconnect from the grid and provide backup power to customers and critical energy uses during contingency events.

Two Working Groups were formed: (1) a Market Facilitation Working Group to recommend draft tariff language for the Microgrid Services Tariff; and (2) an Interconnection Standards Working Group to develop a new section of Rule 14H specific to interconnection and islanding/reconnection of microgrids. The Utilities filed a Draft Microgrid Services Tariff and updated language for various distributed energy resources Rules on March 30, 2020. Parties to the docket filed comments on and proposed revisions to the Draft Tariff on April 27, 2020.

On November 30, 2020, the PUC held a technical conference to present its proposed redlines to Utilities’ Draft Microgrid Services Tariff and related documents. On February 1, 2021, the Working Group filed its Draft Microgrid Tariff. Members of the Working Group separately filed their positions on areas of disagreements and later commented on other parties’ positions on areas of disagreements on February 10, 2021 and February 17, 2021, respectively. This matter is pending a PUC decision and or guidance on how to proceed.

Decoupling. See "Current Decoupling" in Note 3 of the Condensed Consolidated Financial Statements for a discussion of decoupling.

As part of decoupling, the Utilities also track their rate-making ROACEs as calculated under the earnings sharing mechanism, which includes only items considered in establishing rates. At year-end, each utility’s rate-making ROACE is compared against its ROACE allowed by the PUC to determine whether earnings sharing has been triggered. The D&O in the PBR proceeding modified the earnings sharing mechanism to a symmetric arrangement. Effective with annual earnings for 2021, the earnings sharing will be triggered for actual ROACE outside of a 300 basis points dead band above and below a target ROE of 9.5%, which is the current authorized ROE for each of the Utilities. Earnings sharing credits or recoveries will be included in the annual decoupling filing for the following year. Results for 2020, 2019 and 2018 did not trigger the earnings sharing mechanism for the Utilities.

Regulated returns. Actual and PUC-allowed returns, as of March 31, 2021, were as follows:

%	Rate-making Return on rate base (RORB)*			ROACE**			Rate-making ROACE***
Twelve months ended  March 31, 2021	Hawaiian Electric	Hawaii Electric Light	Maui Electric	Hawaiian Electric	Hawaii Electric Light	Maui Electric	Hawaiian Electric	Hawaii Electric Light	Maui Electric
Utility returns	7.65	7.27	6.48	9.24	9.05	7.65	10.20	9.80	8.04
PUC-allowed returns	7.37	7.52	7.43	9.50	9.50	9.50	9.50	9.50	9.50
Difference	0.28	(0.25)	(0.95)	(0.26)	(0.45)	(1.85)	0.70	0.30	(1.46)

*      Based on recorded operating income and average rate base, both adjusted for items not included in determining electric rates.

**    Recorded net income divided by average common equity.

***  ROACE adjusted to remove items not included by the PUC in establishing rates, such as incentive compensation.

The factors contributing to the difference between PUC-allowed ROACEs and the ROACEs actually achieved include the exclusion of certain expenses from rates (for example, incentive compensation and charitable contributions), the recognition of annual RAM revenues on June 1 annually rather than on January 1, and return on capital additions since the last rate case in excess of indexed escalations. For Hawaiian Electric and Hawaii Electric Light, the twelve months ended March 31, 2021 rate-making ROACEs reflect higher earnings due to timing differences in the first quarter of 2021, including overhaul expenses, and a change in the timing of the recognition of target revenues relative to 2020.

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Most recent rate proceedings.  As of March 31, 2021, the status of ongoing rate case for each utility was as follows:

Test year (dollars in millions)	Date	Amount		% over  rates in  effect	ROACE (%)	RORB (%)	Rate  base		Common equity %	Stipulated agreement  reached with Consumer Advocate
Hawaiian Electric
2020 1
Request	8/21/19	$	77.6	4.1	10.50	7.97	$	2,477	57.15	Yes
Final Decision and Order	10/22/20	0.0		0.0	9.50	7.37	NA		57.15
Hawaii Electric Light
2019 2
Request	12/14/18	$	13.4	3.4	10.50	8.30	$	537	56.91	Yes
Interim Decision and Order	11/13/19	0.0		0.0	9.50	7.52	534		56.83
Final Decision and Order	7/28/20	0.0		0.0	9.50	7.52	534		56.83

Note:  The “Request” date reflects the application filing date for the rate proceeding. The date of “Interim Decision and Order” or “Final Decision and Order” reflects the issuance date of the PUC order.

1 A final D&O issued on October 22, 2020 ordered final rates for the 2020 test year to remain at current effective rates, which provides for no increase to base rates. Hawaiian Electric’s proposed RBA provision tariff and ECRC tariff submitted on November 6, 2020 were approved by the PUC on December 11, 2020. The proposed RBA provision tariff and ECRC tariff took effect on January 1, 2021.

2 A final D&O issued on July 28, 2020 ordered final rates for the 2019 test year to remain at current effective rates, such that there is a zero increase in rates. The proposed final tariffs and PIM tariffs took effect on November 1, 2020, and the ECRC tariff became effective on January 1, 2021.

See also “Most recent rate proceedings” in Note 3 of the Condensed Consolidated Financial Statements.

On December 23, 2020, the PBR D&O was issued, establishing a new PBR Framework. The PBR Framework implemented a five-year multi-year rate period (MRP), during which there will be no general rate case applications. In the fourth year of the MRP, the PUC will comprehensively review the PBR Framework to determine if any modifications or revisions are appropriate.

Developments in renewable energy efforts.  Developments in the Utilities’ efforts to further their renewable energy strategy include renewable energy projects discussed in Note 3 of the Condensed Consolidated Financial Statements and the following:

New renewable PPAs.

•In December 2014, the PUC approved a PPA for Renewable As-Available Energy dated October 3, 2013 between Hawaiian Electric and Na Pua Makani Power Partners, LLC (NPM) for a proposed 24-MW wind farm on Oahu. In August 2020, the project was energized and commissioning of all wind turbines was completed. However, the project was paused due to a conductor deficiency. Hawaiian Electric reconductored the 46kV circuit and in December 2020, the project reached commercial operation.

NPM received its Incidental Take Permit from the Department of Fish and Wildlife Service on September 7, 2018. Keep the North Shore Country (KNSC) has appealed this decision and the case has been transferred to the Hawaii Supreme Court. On June 17, 2020, KNSC filed a Motion for Stay Upon Appeal. On August 10, 2020, KNSC’s Motion for Stay Upon Appeal was denied. KNSC and Kahuku Community Association (KCA) have also petitioned to appeal NPM’s Conditional Use Permits. On August 6, 2020, the Zoning Board of Appeals (ZBA) granted NPM’s Motions to Dismiss the Appeal Petitions of KNSC and KCA.

Life of the Land (LOL) filed a Motion for Relief to argue the PUC’s approval for NPM PPA was invalid and should be revised. Hawaiian Electric and the Consumer Advocate filed an opposition to this motion for relief. A hearing on the motion for relief was held on November 22, 2019. On April 16, 2020, the PUC issued an order denying LOL’s Motion for Relief. On April 27, 2020, LOL filed a Notice of Appeal of the PUC’s order with the Supreme Court of the State of Hawaii. Hawaiian Electric filed its Answering Brief with the Supreme Court of the State of Hawaii on November 12, 2020. Oral argument was held on May 7, 2021.

•On December 31, 2019, Hawaii Electric Light and PGV entered into an Amended and Restated Power Purchase Agreement (ARPPA), subject to approval by the PUC. The ARPPA extends the term of the existing PPA by 25 years to 2052, expands the firm capacity of the facility to 46 MW and delinks the pricing for energy delivered from the facility from fossil fuel prices to reduce cost to customers. The PUC suspended the docket pending the completion of a supplemental environmental review. On April 12, 2021, Hawaii Electric Light filed a motion for reconsideration and clarification in the proceeding.

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Tariffed renewable resources.

•As of March 31, 2021, there were approximately 523 MW, 111 MW and 125 MW of installed distributed renewable energy technologies (mainly PV) at Hawaiian Electric, Hawaii Electric Light and Maui Electric, respectively, for tariff-based private customer generation programs, namely Standard Interconnection Agreement, Net Energy Metering, Net Energy Metering Plus, Customer Grid Supply, Customer Self Supply, Customer Grid Supply Plus and Interim Smart Export. As of March 31, 2021, an estimated 31% of single family homes on the islands of Oahu, Hawaii and Maui have installed private rooftop solar systems, and approximately 19% of the Utilities’ total customers have solar systems.   

•The Utilities began accepting energy from feed-in tariff projects in 2011. As of March 31, 2021, there were 43 MW, 2 MW and 5 MW of installed feed-in tariff capacity from renewable energy technologies at Hawaiian Electric, Hawaii Electric Light and Maui Electric, respectively.

Biofuel sources.

•In July 2018, the PUC approved Hawaiian Electric’s three-year biodiesel supply contract with Pacific Biodiesel Technologies, LLC (PBT) to supply 2 million to 4 million gallons of biodiesel at Hawaiian Electric’s Schofield Generating Station and the Honolulu International Airport Emergency Power Facility (HIA Facility) and any other generating unit on Oahu, as necessary. The PBT contract became effective on November 1, 2018 and has been extended for one year through December 2022. Hawaiian Electric also has a spot buy contract with PBT to purchase additional quantities of biodiesel at or below the price of diesel. Some purchases of “at parity” biodiesel have been made under the spot purchase contract, which was extended through June 2022.

•Hawaiian Electric has a contingency supply contract with REG Marketing & Logistics Group, LLC to also supply biodiesel to any generating unit on Oahu in the event PBT is not able to supply necessary quantities. This contingency contract has been extended to November 2022, and will continue with no volume purchase requirements.

Requests for renewable proposals, expressions of interest, and information.

•Under a request for proposal process governed by the PUC and monitored by independent observers, in February 2018, the Utilities issued RFPs for 220 MW of renewable generation on Oahu, 50 MW of renewable generation on Hawaii Island, and 60 MW of renewable generation on Maui. As of March 31, 2021, summarized information for a total of 8 PPAs is as follows:

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

The Utilities have received PUC approvals to recover the total projected annual payment of $62.6 million for the eight PPAs through the PPAC to the extent such costs are not included in base rates.

•In continuation of their February 2018 request for proposal process, the Utilities issued their Stage 2 Renewable RFPs for Oahu, Maui and Hawaii Island and Grid Services RFP on August 22, 2019. This procurement plan sought approximately 900 MW of renewable energy, including 594 MW on Oahu, 135 MW on Maui and a range between 32 to 203 MW on Hawaii Island. This second phase, as approved by the PUC, was open to all renewable and storage resources, including efforts to add more renewable generation, renewable plus storage, standalone storage and grid services. The scope of these RFPs has been expanded to accelerate renewable energy procurement beyond the remainder of the 2022 targets identified in Stage 1 to include the energy requirement associated with the planned retirement of the Kahului Power Plant on Maui and the upcoming expiration of the agreement for the AES Hawaii facility on Oahu. For the Grid Services RFP, the targets had been expanded in alignment with the Renewable RFPs Utility proposals were submitted on November 4, 2019. Proposals from third parties for these RFPs were submitted on November 5, 2019. Final awards for the renewable projects were made on May 8, 2020. Final awards for the grid services projects were made starting in January 2020. On Oahu, seven solar-plus-storage projects and one standalone storage project totaling approximately 281 MW of generation and 1.8 GWh of storage were selected. On Maui Island, three solar-plus-storage projects and one standalone storage project totaling approximately 100 MW of generation and 560 MWh of storage were selected. On Hawaii Island, two solar-plus-storage projects and one standalone storage project totaling approximately 72 MW of generation and 492 MWh of storage were selected. Two Utility Self-Build projects were among those selected; a 40-MW, 160-MWh standalone energy storage system on Maui and a 12-MW,

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12-MWh storage system on Hawaii Island. Since selection, three renewable plus storage projects have voluntarily withdrawn from the process for various reasons, including change in circumstances for the developer and a misunderstanding of contract requirements. To date, the Utilities have filed 10 PPAs, 2 grid services purchase agreements (GSPA) and 2 applications for commitments of funds for capital expenditures for approval of the utility self-build projects with the PUC.

A summary of the 10 PPAs that were filed with the PUC, is as follows:

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

* See further discussion under “Review of Interconnection Process and Kapolei Energy Storage Power Purchase Agreement” below.

As of March 31, 2021, the PUC approved four solar-plus-storage PPAs for a total of 217 MW. On April 14, 2021, the PUC approved another solar-plus-storage PPA adding 40 MW. The total projected annual payment of $68 million for these PPAs will be recovered through the PPAC to the extent such costs are not included in base rates.

A summary of the GSPAs that were approved by PUC in December 2020 is as follows:

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

A summary of the utility self-build projects that are pending PUC approval is as follows:

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

•On November 27, 2019, the Utilities issued RFPs for renewable generation paired with energy storage on the islands of Lanai and Molokai. The Utilities were seeking PV paired with storage or small wind (specified as 100 kW turbines or smaller) on Molokai and PV paired with storage on Lanai. Proposals for the Molokai RFP were received on February 14, 2020. The Lanai RFP was temporarily postponed, while the Utilities reevaluated the system needs. The Utilities filed an update to the Lanai RFP on March 10, 2020. In light of a PUC order issued on April 9, 2020 in the CBRE docket, the Utilities proposed in their July 9, 2020 filing to combine the previously issued Lanai RFP with the CBRE RFP described in the order to optimize the benefits of procuring renewable energy, spurring development and increasing the likelihood of success of the CBRE program on Lanai. The proposed combined Lanai RFP is before the PUC for approval. On October 15, 2020, the Utilities selected one project from the Molokai RFP for a total of 4.5 MW of solar and 24 MWh of storage. The developer, however, declined to accept the award. The Utilities are currently evaluating next steps.

Review of Interconnection Process and Kapolei Energy Storage Power Purchase Agreement.

•In February 2021, the PUC initiated a docket for the purposes of reviewing the status and interconnection progress of various utility-related renewable projects (i.e. Stage 1 and Stage 2 RFP PPAs and CBRE) and the Utilities’ transition plans for the expiration of the AES power purchase agreement, the retirement of the Kahului Power Plant, and other

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fossil fuel power plant transition plans, as needed. The Utilities filed initial status updates on the project timelines, steps needed for each of the renewable projects to achieve commercial operation and steps the Utilities are taking to address projected extensions of guaranteed commercial operation dates (GCOD) for renewable projects under development, which are due to a variety of factors, including those outside of the control of the Utilities. The PUC subsequently held status conferences on the Utilities’ updates. In April 2021, the PUC issued an Order directing the Utilities to establish regulatory liabilities for the difference between the on-peak avoided cost and the unit price included in the applications for approval of the renewable project PPAs, effective with the GCOD included in the applications (the earliest GCOD included in the applications is July 2021) or from the date of the Order for CBRE Phase 1 projects. The amount of regulatory liabilities to be recorded in future periods are not determinable at this time and would be affected by a number of factors, including the length of the GCOD extension period, the monthly on-peak avoided cost, as well as the factors described above. The Utilities filed a Motion for Reconsideration of the entire Order, or in the alternative to clarify that at most the PUC is directing the Utilities to track the information and not record the information at this time. The Utilities further requested a Stay of the Order pending resolution of the Motion. The Utilities maintain that extensions of GCODs are allowed under the PUC-approved contracts and that the Order has the unintended consequence of imposing penalties against the Utilities without due process. The full text of the Order, Motion for Reconsideration and request for a Stay of the Order can be found on the PUC website at dms.puc.hawaii.gov/dms (Docket No. 2021-0024).

•Also in April 2021, the PUC approved the Kapolei Energy Storage (KES) PPA (one of the PPAs as a result of the Stage 2 Renewable RFP process) (KES Decision and Order), subject to nine conditions, including the Utilities forgoing the second portion of the PIM rewards amounting up to $1.7 million for the Stage 1 RFP PPAs, removing grid constraints for the Utilities’ CBRE Phase 2 projects and for existing and new distributed energy programs, financial retirement of Hawaiian Electric generating units by specified dates and adjusting target revenues at the retirement dates for such retirements, and a requirement to charge the batteries in the project using significant levels of renewable energy generation. The financial retirement of the generating units described in the KES Decision and Order is contrary to the intent of Hawaii Revised Statutes §269-6(d), which encourages the recovery of stranded costs for the retirement of fossil fuel generation, and contrary to the regulatory compact under which in return for agreeing to commit capital necessary to allow utilities to meet their obligation to serve, utilities are assured recovery of their investment and a fair opportunity to earn a reasonable return on the capital prudently committed to the business. The undepreciated amount of the six generating units at the retirement dates noted in the KES Decision and Order is currently estimated to be approximately $55 million, and excludes certain asset retirement obligation costs, which are not determinable at this time. Hawaiian Electric plans to file a Motion for Reconsideration and Stay of the Decision and Order due to potentially significant financial and operational impacts. Depending on the PUC’s ruling on that motion, Hawaiian Electric would have the option of proceeding with the Decision and Order as may be amended, filing an appeal, or considering declaring the contract with KES null and void. The full text of the KES Decision and Order and, when filed, the Motion for Reconsideration and Stay with respect thereto, can be found on the PUC website at dms.puc.hawaii.gov/dms (Docket No. 2020-0136).

Legislation and regulation. Congress and the Hawaii legislature periodically consider legislation that could have positive or negative effects on the Utilities and their customers. Also see “Environmental regulation” in Note 3 of the Condensed Consolidated Financial Statements.

Fuel contracts. The fuel contract entered into in January 2019, by the Utilities and PAR Hawaii Refining, LLC (PAR Hawaii), for the Utilities’ low sulfur fuel oil (LSFO), high sulfur fuel oil (HSFO), No. 2 diesel, and ultra-low sulfur diesel (ULSD) requirements was approved by the PUC, and became effective on April 28, 2019 and terminates on December 31, 2022. This contract is a requirement contract with no minimum purchases. If PAR Hawaii is unable to provide LSFO, HSFO, diesel and/or ULSD the contract allows the Utilities to purchase LSFO, HSFO, diesel and/or ULSD from another supplier. The contract will automatically renew upon the conclusion of the original term for successive terms of 1 year beginning on January 1, 2023 unless a party gives written termination notice at least 120 days before the beginning of an extension. The costs incurred under the contract with PAR Hawaii are recovered in the Utilities’ respective ECRCs.

On June 9, 2020, the Utilities and PAR Hawaii entered into a First Amendment to the fuel contract. The First Amendment amends only the pricing to create a two-tiered structure based on volume, with all tier-1 LSFO up to the tier-1 maximum to be purchased exclusively from PAR Hawaii at the established pricing, and purchases in excess of that volume (tier-2) either from PAR Hawaii at the established pricing, or from an alternative supplier. On August 4, 2020, the PUC approved the First Amendment, which has an effective date of July 15, 2020, on an interim basis. The PUC’s approval order allows the recovery of such costs associated with the First Amendment through the ECRC to the extent that the costs are not recovered in base rates. The PUC intends to review whether the First Amendment is reasonable and in the public interest in the final decision, but it will not subject the recovery of the costs between the interim decision and the final decision to retroactive disallowances.

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FINANCIAL CONDITION

Liquidity and capital resources. As of March 31, 2021, there were no amounts outstanding on Hawaiian Electric’s revolving credit facilities and no commercial paper borrowings by the Utilities.

On January 14, 2021, the Utilities received $115 million of proceeds using a delayed draw feature under a private placement executed on October 29, 2020. The proceeds were used to finance capital expenditures and reimburse funds used for the payment of capital expenditures.

The Utilities believe that their ability to generate cash, both internally from operations and externally from issuances of equity and debt securities, as well as bank borrowings, is adequate to maintain sufficient liquidity to fund their contractual obligations and commercial commitments, their forecasted capital expenditures and investments, their expected retirement benefit plan contributions and other cash requirements. However, the COVID-19 pandemic is an evolving situation, and the Utilities cannot predict the extent or duration of the outbreak, the future effects that it will have on the global, national or local economy, including the impacts on the Utilities’ ability, as well as the cost, to access additional capital, or the future impacts on the Utilities’ financial position, results of operations, and cash flows. See Item 1A. “Risk Factors” in Part II for further discussion of risks and uncertainties.

Hawaiian Electric’s consolidated capital structure was as follows:

(dollars in millions)	March 31, 2021				December 31, 2020
Short-term borrowings	$	—	—	%	$	50	1	%
Long-term debt, net	1,676		43		1,561		41
Preferred stock	34		1		34		1
Common stock equity	2,157		56		2,142		57
	$	3,867	100	%	$	3,787	100	%

Information about Hawaiian Electric’s commercial paper borrowings, borrowings from HEI and line of credit facility were as follows:

	Average balance		Balance
(in millions)	Three months ended March 31, 2021		March 31, 2021		December 31, 2020
Short-term borrowings1
Commercial paper	$	—	$	—	$	—
Borrowings from HEI	—		—		—
Line of credit draws	—		—		—
Undrawn capacity under line of credit facilities	—		275		275

1   The maximum amount of external short-term borrowings by Hawaiian Electric during the first three months of 2021 was approximately $50 million. As of March 31, 2021, Hawaii Electric Light and Maui Electric had no short-term borrowings from Hawaiian Electric. In addition to the short-term borrowings above, on January 15, 2021, Hawaiian Electric paid off and terminated the $50 million term loan facility dated as of May 19, 2020.

Hawaiian Electric has a $200 million line of credit facility and a $75 million 364-day revolving credit facility with no amounts outstanding at March 31, 2021. On April 19, 2021, Hawaiian Electric’s $75 million 364-day revolving credit agreement terminated and was not renewed. See Note 5 of the Condensed Consolidated Financial Statements.

Bank loans. On January 15, 2021, Hawaiian Electric paid off and terminated the $50 million term loan credit agreement dated as of May 19, 2020.

Credit ratings. On March 17, 2021, S&P upgraded Hawaiian Electric’s issuer credit rating to “BBB” from “BBB-”, upgraded the short-term and commercial paper ratings to “A-2” from “A-3” and revised the outlook to stable from positive. The rating upgrade was primarily based on Hawaiian Electric’s strong financial measures, strength of the cumulative value of the regulatory protections, and S&P’s assessment of its stand-alone credit profile as sufficient to rate Hawaiian Electric higher than HEI.

On April 20, 2021, Moody’s upgraded Hawaiian Electric’s senior unsecured rating and issuer rating to “Baa1” from “Baa2” and revised the outlook to stable from positive. The rating upgrade reflects Hawaiian Electric's considerable progress in adding renewable resources to its energy supply mix and the improving regulatory relationship with the PUC.

SPRBs. Special purpose revenue bonds (SPRBs) have been issued by the Department of Budget and Finance of the State of Hawaii (DBF) to finance (and refinance) capital improvement projects of Hawaiian Electric and its subsidiaries, but the

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sources of their repayment are the non-collateralized obligations of Hawaiian Electric and its subsidiaries under loan agreements and notes issued to the DBF, including Hawaiian Electric’s guarantees of its subsidiaries’ obligations.

On May 24, 2019, the PUC approved the Utilities’ request to issue SPRBs in the amounts of up to $70 million, $2.5 million and $7.5 million for Hawaiian Electric, Hawaii Electric Light and Maui Electric, respectively, prior to June 30, 2020, to finance the Utilities’ capital improvement programs. Pursuant to this approval, on October 10, 2019, the DBF issued, at par, Series 2019 SPRBs in the aggregate principal amount of $80 million with a maturity of October 1, 2049. As of March 31, 2021, Hawaiian Electric had $12 million of undrawn funds remaining with the trustee. Hawaii Electric Light and Maui Electric had no undrawn funds as of March 31, 2021.

On June 10, 2019, the Hawaii legislature authorized the issuance of up to $700 million of SPRBs ($400 million for Hawaiian Electric, $150 million for Hawaii Electric Light and $150 million for Maui Electric), with PUC approval, prior to June 30, 2024, to finance the Utilities’ multi-project capital improvement programs (2019 Legislative Authorization).

On February 9, 2021, the PUC approved the Utilities’ request to issue SPRBs (up to $100 million, $35 million and $45 million for Hawaiian Electric, Hawaii Electric Light and Maui Electric, respectively) through 2022, with the proceeds to be used to finance the Utilities’ multi-project capital improvement programs. The PUC also approved the use of the expedited approval procedure to request the issuance and sale of the remaining/unused amount of SPRBs authorized by the 2019 Legislative Authorization (i.e., total not to exceed up to $400 million for Hawaiian Electric, up to $150 million for Hawaii Electric Light, and up to $150 million for Maui Electric) during the period January 1, 2023 through June 30, 2024.

Taxable debt. On January 31, 2019, the Utilities received PUC approval (January 2019 Approval) to issue the remaining authorized amounts under the PUC approval received in April 2018 (April 2018 Approval) in 2019 through 2020 (Hawaiian Electric up to $205 million and Hawaii Electric Light up to $15 million of taxable debt), as well as a supplemental increase to authorize the issuance of additional taxable debt to finance capital expenditures, repay long-term and/or short term debt used to finance or refinance capital expenditures, and/or to reimburse funds used for payment of capital expenditures, and to refinance the Utilities’ 2004 junior subordinated deferrable interest debentures (QUIDS) prior to maturity. In addition, the January 2019 Approval authorized the Utilities to extend the period to issue additional taxable debt from December 31, 2021 to December 31, 2022. The new total “up to” amounts of taxable debt requested to be issued through December 31, 2022 are $410 million, $150 million and $130 million for Hawaiian Electric, Hawaii Electric Light and Maui Electric, respectively.

As of March 31, 2021, Hawaiian Electric, Hawaii Electric Light, and Maui Electric have $135 million, $85 million, and $45 million, respectively, of remaining taxable debt to issue prior to December 31, 2022. See summary table below.

(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

Equity. In October 2018, the Utilities received PUC approval for the supplemental increase to issue and sell additional common stock in the amounts of up to $280 million for Hawaiian Electric and up to $100 million each for Hawaii Electric Light and Maui Electric, with the new total “up to” amounts of $430 million for Hawaiian Electric and $110 million each for Hawaii Electric Light and Maui Electric, and to extend the period authorized by the PUC to issue and sell common stock from December 31, 2021 to December 31, 2022. As of March 31, 2021, Hawaiian Electric, Hawaii Electric Light, and Maui Electric have $275.8 million, $102.5 million, and $87.8, respectively, of remaining common stock to issue prior to December 31, 2022. See summary table below.

(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

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Cash flows. The following table reflects the changes in cash flows for the three months ended March 31, 2021 compared to the three months ended March 31, 2020:

	Three months ended March 31
(in thousands)	2021		2020		Change
Net cash provided by operating activities	$	31,961	$	39,141	$	(7,180)
Net cash used in investing activities	(68,498)		(116,431)		47,933
Net cash provided by financing activities	36,460		78,707		(42,247)

Net cash provided by operating activities. The decrease in net cash provided by operating activities was primarily driven by an increase in fuel oil stock due to less consumption.

Net cash used in investing activities. The decrease in net cash used in investing activities was primarily driven by a decrease in capital expenditures related to construction activities.

Net cash provided by financing activities. The decrease in net cash provided by financing activities was primarily driven by repayment of short-term debt.

Forecast capital expenditures. For the three-year period 2021 through 2023, the Utilities forecast up to $1.2 billion of net capital expenditures, which could change over time based upon external factors such as the timing and scope of environmental regulations and/or unforeseen delays in permitting and timing of PUC decisions. Proceeds from the issuance of equity and long-term debt, cash flows from operating activities, temporary increases in short-term borrowings and existing cash and cash equivalents are expected to provide the funds needed for the net capital expenditures, to pay down commercial paper or other short-term borrowings, as well as to fund any unanticipated expenditures not included in the 2021 to 2023 forecast (such as increases in the costs or acceleration of capital projects, or unanticipated capital expenditures that may be required by new environmental laws and regulations).

Management periodically reviews capital expenditure estimates and the timing of construction projects. These estimates may change significantly as a result of many considerations, including changes in economic conditions, changes in forecasts of kWh sales and peak load, the availability of purchased power and changes in expectations concerning the construction and ownership of future generation units, the availability of generating sites and transmission and distribution corridors, the need for fuel infrastructure investments, the ability to obtain adequate and timely rate increases, escalation in construction costs, the effects of opposition to proposed construction projects and requirements of environmental and other regulatory and permitting authorities.

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Bank

Recent Developments—COVID-19

See also Recent developments—COVID-19 in HEI’s MD&A.

In the first quarter of 2021, economic conditions in Hawaii began to improve following the rollout of stimulus programs and the loosening of business restrictions, both of which boosted economic activity. Continued efforts to vaccinate a high proportion of the population quickly and the potential implementation of a “vaccine passport” is expected to further accelerate the economic recovery. With increased optimism regarding an acceleration of an economic recovery, long-term rates increased during the quarter. However, interest rates across the curve remain at relatively low levels, and continue to negatively impact net interest margin as new loan origination rates remain below existing portfolio yields. In the first quarter of 2021, the bank’s net interest margin was 2.95% compared to 3.12% and 3.72% for the quarters ended December 31, 2020 and March 31, 2020, respectively.

In response to COVID-19, ASB made short-term loan modifications to borrowers who were generally payment current at the time of relief. As of March 31, 2021, approximately $9 million of loans remained in their active deferral period. For the loans that have completed their short-term payment deferral period, approximately $17 million of loans required further assistance through repayment modifications and ASB reflected these loans as troubled debt restructured loans as of March 31, 2021. Approximately $13 million of loans were not able to resume their contractual payments and were considered delinquent as of March 31, 2021. As a result of an overall strengthening of the Hawaii economy and a corresponding improvement in the credit outlook in the first quarter of 2021, as reflected in upgrades in the commercial loan portfolio and overall lower net charge offs, ASB recorded an $8.4 million recovery of the provision for credit losses to reduce the allowance for credit losses. The provision for credit losses in future quarters will be dependent on future economic conditions and changes to borrower credit quality at that time.

In 2020, ASB temporarily closed 15 of its 49 branches and reduced banking hours at the branches that remained open in an effort to reduce social gathering and protect employees and customers. The bank has since reopened five of the branches that were temporarily closed and permanently closed eight branches. The reduction in ASB’s branch network should not have a significant impact to the bank’s customers as there are other branches nearby and other channels such as online and mobile banking. ASB continues to evaluate its branch network to determine whether further changes may be appropriate given its customers’ use of other banking channels.

ASB’s senior management team continues to meet on a regular basis to manage the response to the pandemic and discuss key focus areas such as the safety of the bank’s employees and customers as well as any impacts to the operations of the bank. Senior management also continues to meet regularly with ASB’s board of directors to keep them apprised of the impacts of the COVID-19 pandemic.

The CARES Act was signed into law on March 27, 2020. The CARES Act provided over $2 trillion in economic assistance for American workers, families, and small businesses, and job preservation for American industries. The PPP was established under the CARES Act and implemented by the United States Small Business Administration (SBA) to provide a direct incentive for small businesses to keep their workers on the payroll as a result of the COVID-19 crisis. The Paycheck Protection Program Flexibility Act was signed into law on June 5, 2020 and the Economic Aid Act was signed into law on December 27, 2020, which amended some of the prior rules and guidelines of the CARES Act. The Economic Aid Act established a second round of PPP, reopening the PPP for first-time borrowers and allowing for a second draw for businesses that meet more restrictive eligibility criteria to target businesses hardest hit by the pandemic. Loans issued through the PPP are 100% federally guaranteed and have a maturity of 2-5 years, depending on when the loan was made, at a fixed interest rate of 1%. Loan payments will be deferred until the earlier of (a) the date that the forgiven amount is remitted to the lender by the SBA; or (b) 10 months from the date the covered period ends. The SBA will forgive all loan amounts to a particular small business if such small business is compliant with the terms and conditions of the PPP. Small businesses had the earlier of 24 weeks from disbursement of the loan or December 31, 2020 to incur allowable expenses such as payroll costs, interest on mortgages, rent and utility expenses that would be covered by the loan forgiveness rules, with 60% of the loan forgiveness needing to be for payroll costs. There is a partial forgiveness if less than 60% of the loan disbursement was spent on payroll costs. Employers had until December 31, 2020 to restore their workforce. Lenders processed and approved the PPP loans under delegated authority of the SBA. As an existing SBA certified lender, ASB worked with a number of small businesses, both customers and non-customers, to complete the loan application forms so that these businesses could participate in the program. During the first round of PPP, the Bank secured more than $370 million in PPP loans for approximately 4,100 small businesses that supported over 40,000 jobs, ASB received processing fees totaling approximately $13 million and started recognizing these fees over the life of the loans. The Bank is participating in the second round of PPP which opened for submission by banks on January 19, 2021. As of April 7, 2021, ASB secured more than $160 million for approximately 2,000 small businesses that supported more than 18,000 jobs.

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Other provisions of the CARES Act provides that a financial institution may elect to suspend the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and any related impairment for accounting purposes. See Note 4 of the Condensed Consolidated Financial Statements and “Economic conditions” in the “HEI Consolidated” section above.

ASB continues to maintain its low-risk profile, strong balance sheet and straightforward community banking business model.

	Three months ended March 31				Increase
(in millions)	2021		2020		(decrease)		Primary reason(s)
Interest income	$	59	$	65	$	(6)
							Average loan portfolio yields 57 basis points lower—impacted by the continued low interest rate environment as adjustable rate loans have repriced lower during the past year and new loan production yields continue to originate below their portfolio yields.
							Average loan portfolio balances increased $207 million - commercial and commercial real estate loan portfolio balances increased by $275 million and $211 million, respectively. Home equity lines of credit and consumer loan portfolios decreased $162 million and $91 million, respectively - strategic decision to reduce production of these loans in the current economic environment.
							Average investment securities portfolio balance increased $983 million—excess liquidity from strong deposit growth invested in agency securities.
							Average investment securities yields 119 basis points lower—impacted by the continued low interest rate environment as the amortization of premiums on investment securities have increased with faster prepayment assumptions and new investment security purchase yields continue to be lower than the investment security portfolio yields.
Noninterest income	19		15		4
							Higher mortgage banking income due to higher residential loan sale volume.
							Higher bank-owned life insurance income primarily due to proceeds from a death claim and higher fair market value adjustment on bank owned life insurance assets.
Less: gain on sale of investment securities, net	(1)		—		(1)		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, is classified as gain on sale of investment securities, net in the condensed consolidated statements of income, and accordingly, is reflected after operating income as a separate line item and excluded from Revenues.
Revenues	77		80		(3)		The decrease in revenues for the three months ended March 31, 2021 compared to the same period in 2020 was primarily due to lower interest income, partly offset by higher noninterest income.
Interest expense	1		4		(3)
							Lower interest expense on deposits—lower term certificate balances due to runoff of government term certificates and lower deposit yields as a result of the continued low interest rate environment.
							Average core deposit balances increased $1.4 billion; average term certificate balances decreased $230 million.
							Average deposit yields decreased from 15 basis points to 8 basis points.
							Lower interest expense on other borrowings—primarily due to lower repurchase agreement yields as a result of the continued low interest rate environment.
Provision for credit losses	(8)		10		(18)
							Negative provision for credit losses reflects improvement in economic outlook, strong credit results including lower net charge-offs and credit upgrades in commercial real estate and commercial loan portfolios.
							Negative provision for credit losses also due to lower personal unsecured loan portfolio balances which had higher credit loss rates.
							Delinquency rates have decreased—from 0.48% at March 31, 2020 to 0.43% at March 31, 2021.
							Net charge-off to average loans have decreased—from 0.44% at March 31, 2020 to 0.18% at March 31, 2021 due to lower personal unsecured loan portfolio net charge-offs.

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	Three months ended March 31		Increase
(in millions)	2021	2020	(decrease)	Primary reason(s)
Noninterest expense	48	46	2
				Higher compensation and benefits expenses—increase in incentive compensation payout for commission based employees.
				One-time adjustment for change in accounting for ASB retirement plan.
Expenses	41	60	(19)	The decrease in expenses for the three months ended March 31, 2021 compared to the same period in 2020 was due to lower provision for credit losses and lower interest expense, partly offset by higher noninterest expenses.
Operating income	36	19	17	The increase in operating income for the three months ended March 31, 2021 compared to the same period in 2020 was primarily due to lower provision for credit losses, lower interest expense and higher noninterest income, partly offset by lower interest income and higher noninterest expenses.
Gain on sale of investment securities, net	1	—	1
Net income	30	16	14	Net income for the three months ended March 31, 2021 was higher than the same period in 2020 due to higher operating income, partly offset by higher income tax expense.

ASB’s return on average assets, return on average equity and net interest margin were as follows:

	Three months ended March 31
(%)	2021	2020
Return on average assets	1.40	0.87
Return on average equity	16.04	9.15
Net interest margin	2.95	3.72

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	Three months ended March 31
	2021					2020
(dollars in thousands)	Average balance		Interest income/ expense		Yield/ rate (%)	Average balance		Interest  income/ expense		Yield/ rate (%)
Assets:
Interest-earning deposits	$	47,080	$	12	0.10	$	26,654	$	92	1.36
FHLB stock	9,929		81		3.29	9,375		78		3.37
Investment securities
Taxable	2,352,570		8,366		1.42	1,388,466		9,019		2.60
Non-taxable	47,599		271		2.28	28,683		305		4.20
Total investment securities	2,400,169		8,637		1.44	1,417,149		9,324		2.63
Loans
Residential 1-4 family	2,149,788		19,588		3.64	2,178,480		21,922		4.03
Commercial real estate	1,108,851		9,005		3.26	898,162		9,509		4.21
Home equity line of credit	937,942		7,265		3.14	1,099,694		9,220		3.37
Residential land	16,457		210		5.11	14,050		197		5.60
Commercial	962,198		8,912		3.73	687,303		6,730		3.91
Consumer	158,930		4,987		12.72	249,917		7,989		12.86
Total loans 1,2	5,334,166		49,967		3.77	5,127,606		55,567		4.34
Total interest-earning assets 3	7,791,344		58,697		3.03	6,580,784		65,061		3.96
Allowance for credit losses	(101,712)					(72,501)
Noninterest-earning assets	766,844					722,233
Total assets	$	8,456,476				$	7,230,516
Liabilities and shareholder’s equity:
Savings	$	2,901,661	$	191	0.03	$	2,395,751	$	540	0.09
Interest-bearing checking	1,180,049		57		0.02	1,049,010		230		0.09
Money market	178,275		37		0.09	147,776		250		0.68
Time certificates	540,461		1,177		0.88	770,350		2,567		1.34
Total interest-bearing deposits	4,800,446		1,462		0.12	4,362,887		3,587		0.33
Advances from Federal Home Loan Bank	30,126		23		0.30	23,195		90		1.56
Securities sold under agreements to repurchase and federal funds purchased	75,332		4		0.02	96,013		223		0.93
Total interest-bearing liabilities	4,905,904		1,489		0.12	4,482,095		3,900		0.35
Noninterest bearing liabilities:
Deposits	2,645,636					1,914,774
Other	168,067					144,609
Shareholder’s equity	736,869					689,038
Total liabilities and shareholder’s equity	$	8,456,476				$	7,230,516
Net interest income			$	57,208				$	61,161
Net interest margin (%) 4					2.95					3.72

1   Includes loans held for sale, at lower of cost or fair value.

2   Includes recognition of net deferred loan fees of $2.8 million and nil for the three months ended March 31, 2021 and 2020, respectively,

together with interest accrued prior to suspension of interest accrual on nonaccrual loans. Includes nonaccrual loans.

3   For the three months ended March 31, 2021 and 2020, the taxable-equivalent basis adjustments made to the table above were not material.

4   Defined as net interest income, on a fully taxable equivalent basis, as a percentage of average total interest-earning assets.

Earning assets, costing liabilities, contingencies and other factors.  Earnings of ASB depend primarily on net interest income, which is the difference between interest earned on earning assets and interest paid on costing liabilities. The interest rate environment has been impacted by disruptions in the financial markets over a period of several years. In 2020, the Federal Open Market Committee lowered its federal funds rate target range to 0% - 0.25% in response to the financial crisis caused by the COVID-19 pandemic, which resulted in a decrease in ASB’s net interest income and net interest margin. A prolonged low interest rate environment may continue to negatively impact ASB’s net interest income and net interest margin.

Loans and mortgage-backed securities are ASB’s primary earning assets.

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 Loan portfolio.  ASB’s loan volumes and yields are affected by market interest rates, competition, demand for financing, availability of funds and management’s responses to these factors. See Note 4 of the Condensed Consolidated Financial Statements for the composition of ASB’s loans.

Home equity — key credit statistics. The HELOC portfolio makes up 17% of the total loan portfolio and is generally an interest-only revolving loan for a 10-year period, after which time the HELOC outstanding balance converts to a fully amortizing variable-rate term loan with a 20-year amortization period. Borrowers also have a “Fixed Rate Loan Option” to convert a part of their available line of credit into a 5, 7 or 10-year fully amortizing fixed-rate loan with level principal and interest payments. As of March 31, 2021, approximately 21% of the portfolio balances were amortizing loans under the Fixed Rate Loan Option. A HELOC loan is typically in a subordinate lien position to a borrower’s first mortgage loan, however, approximately 57% of ASB’s HELOC loan portfolio is in a first lien position.

Attention had been given by regulators and rating agencies to the potential for increased exposure to credit losses associated with HELOCs that were originated during the period of rapid home price appreciation between 2003 and 2007 as they have reached the end of their 10-year, interest-only payment periods. Once the interest only payment period has ended, payments are reset to include principal repayments along with interest. ASB does not have a large exposure to HELOCs originated between 2003 and 2007. Nearly all of ASB’s HELOC originations prior to 2008 consisted of amortizing equity lines that have structured principal payments during the draw period. These older equity lines represent 1% of the HELOC portfolio.

Loan portfolio risk elements.  See Note 4 of the Condensed Consolidated Financial Statements.

Investment securities.  ASB’s investment portfolio was comprised as follows:

	March 31, 2021				December 31, 2020
(dollars in thousands)	Balance		% of total		Balance		% of total
U.S. Treasury and federal agency obligations	$	57,647	2	%	$	62,322	3	%
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	2,496,398		96		2,076,506		95
Corporate bonds	30,831		1		31,351		1
Mortgage revenue bonds	15,427		1		27,185		1
Total investment securities	$	2,600,303	100	%	$	2,197,364	100	%

Currently, ASB’s investment portfolio consists of U.S. Treasury and federal agency obligations, mortgage-backed securities, corporate bonds and mortgage revenue bonds. ASB owns mortgage-backed securities issued or guaranteed by the U.S. government agencies or sponsored agencies, including the Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), Government National Mortgage Association (GNMA) and Small Business Administration (SBA). Principal and interest on mortgage-backed securities issued by FNMA, FHLMC, GNMA and SBA are guaranteed by the issuer and, in the case of GNMA and SBA, backed by the full faith and credit of the U.S. government. U.S. Treasury securities are also backed by the full faith of the U.S. government. The increase in the investment securities portfolio was primarily due to the purchase of securities with excess liquidity.

Deposits and other borrowings.  Deposits continue to be the largest source of funds for ASB and are affected by market interest rates, competition and management’s responses to these factors. While deposits have increased by $358 million year-to-date, in part due to PPP loan proceeds and consumer economic impact payments from the CARES Act stimulus program, deposit retention and sustained growth will remain challenging in the current environment due to competition for deposits and the low level of short-term interest rates. Advances from the FHLB of Des Moines, securities sold under agreements to repurchase and federal funds purchased continue to be additional sources of funds. As of March 31, 2021 and December 31, 2020, ASB’s costing liabilities consisted of 99% deposits and 1% other borrowings. The weighted average cost of deposits for the first three months of 2021 and 2020 was 0.08% and 0.23%, respectively.

Federal Home Loan Bank of Des Moines. As of March 31, 2021 and December 31, 2020, ASB had no advances outstanding at the FHLB of Des Moines. As of March 31, 2021, the unused borrowing capacity with the FHLB of Des Moines was $2.0 billion. The FHLB of Des Moines continues to be an important source of liquidity for ASB.

Contingencies.  ASB is subject in the normal course of business to pending and threatened legal proceedings. Management does not anticipate that the aggregate ultimate liability arising out of these pending or threatened legal proceedings will be material to its financial position. However, ASB cannot rule out the possibility that such outcomes could have a material adverse effect on the results of operations or liquidity for a particular reporting period in the future.

Other factors.  Interest rate risk is a significant risk of ASB’s operations and also represents a market risk factor affecting the fair value of ASB’s investment securities. Increases and decreases in prevailing interest rates generally translate into

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decreases and increases in the fair value of the investment securities, respectively. In addition, changes in credit spreads also impact the fair values of the investment securities.

As of March 31, 2021, ASB had an unrealized loss, net of taxes, on available-for-sale investment securities (including securities pledged for repurchase agreements) in AOCI of $25.8 million compared to an unrealized gain, net of taxes, of $20.0 million as of December 31, 2020. See “Item 3. Quantitative and qualitative disclosures about market risk” for a discussion of ASB’s interest rate risk sensitivity.

During the first three months of 2021, ASB recorded a negative provision for credit losses of $7.0 million in the allowance for credit losses primarily due to improvement in the economic outlook, strong credit results including lower net charge-offs and credit upgrades in commercial real estate and commercial loan portfolios and due to lower personal unsecured loan portfolio balances which had higher credit loss rates. During the first three months of 2020, ASB recorded a provision for credit losses of $9.9 million in the allowance for credit losses primarily due to increased loss reserves for the consumer loan portfolio, increased loss rates for the commercial and commercial real estate portfolios and reserves for forecasted deterioration due to the COVID-19 pandemic.

	Three months ended March 31						Year ended December 31, 2020
(in thousands)	2021			2020
Allowance for credit losses	$	101,201		$	53,355		$	53,355
Impact of adopting ASU No. 2016-13	—			19,441			19,441
Provision for credit losses	(7,035)			9,901			49,811
Less: net charge-offs	2,373			5,613			21,406
Allowance for credit losses, end of period	$	91,793		$	77,084		$	101,201
Ratio of net charge-offs during the period to average loans outstanding (annualized)	0.18		%	0.44		%	0.40		%

ASB maintains a reserve for credit losses that consists of two components, the allowance for credit losses and an allowance for loan commitments (unfunded reserve). The level of the reserve for unfunded loan commitments is adjusted by recording an expense or recovery in provision for credit losses. For the three months ended March 31, 2021 and 2020, ASB recorded a recovery in the provision for credit losses for unfunded commitments of $1.4 million and a provision for credit losses for unfunded commitments of $0.5 million, respectively. As of March 31, 2021 and December 31, 2020, the reserve for unfunded loan commitments was $2.9 million and $3.8 million, respectively.

Legislation and regulation.  ASB is subject to extensive regulation, principally by the OCC and the FDIC. Depending on ASB’s level of regulatory capital and other considerations, these regulations could restrict the ability of ASB to compete with other institutions and to pay dividends to its shareholder. See the discussion below under “Liquidity and capital resources.”

Changes to Community Bank Leverage Ratio. In April 2020, the federal bank regulatory agencies issued two interim final rules to implement Section 4012 of the CARES Act, which requires the agencies to temporarily lower the community bank leverage ratio to 8 percent. The two rules modify the community bank leverage ratio framework so that:

•Beginning in the second quarter of 2020 and until the end of the year, a banking organization that has a leverage ratio of 8 percent or greater and meets certain other criteria may elect to use the community bank leverage ratio framework; and

•Community banking organizations will have until January 1, 2022 before the community bank leverage ratio requirement is re-established at greater than 9 percent.

Under the interim final rules, the community bank leverage ratio was 8 percent beginning in the second quarter of 2020 and for the remainder of calendar year 2020, 8.5 percent for calendar year 2021, and 9 percent thereafter. The interim final rules also maintain a two-quarter grace period for a qualifying community banking organization whose leverage ratio falls no more than 1 percent below the applicable community bank leverage ratio.

As of March 31, 2021, the bank was in compliance with all of the minimum capital requirements under OCC regulations, and was categorized as “well capitalized” under the regulatory framework for prompt corrective action. Beginning in the second quarter of 2020, ASB adopted the community bank leverage ratio framework, which allowed it to report only on the community bank leverage ratio, but does not change minimum capital requirements under OCC regulations. At March 31, 2021, ASB’s leverage fell below the 8.5 percent requirement to qualify for abbreviated reporting under the community bank leverage framework for 2021. The bank will begin reporting its risk-based capital ratios if the community bank leverage ratio does not meet the 2021 requirement after the two-quarter grace period.

Covered Savings Associations. On May 24, 2019, the OCC issued a final rule to allow federal savings associations with total consolidated assets of $20 billion or less, as reported by the association to the OCC on its call report as of December 31, 2017, to elect to operate as covered savings associations. A covered savings association generally has the same rights and

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privileges as a national bank that has its main office situated in the same location as the home office of the covered savings association, with some exceptions. It is subject to the same duties, restrictions, penalties, liabilities, conditions, and limitations that apply to a national bank, with some exceptions, and must comply with certain rules and regulations applicable to the powers and investments of a national bank. A covered savings association is not required to comply with the lending and investment limits in HOLA and is not required to be a qualified thrift lender under HOLA. Finally, a covered savings association is not permitted to retain or engage in any subsidiaries, assets, or activities that are not permissible for a national bank. ASB has initiated a preliminary examination of the benefits and disadvantages of such an election with the preservation of being held by a unitary thrift holding company in mind. On April 1, 2021, the general counsel of the Board of Governors of the Federal Reserve System issued an opinion letter to another institution regarding the preservation of the unitary thrift holding company status. ASB is now undertaking a review of that letter. The bank has not reached a decision on the election.

FINANCIAL CONDITION

Liquidity and capital resources.

(dollars in millions)	March 31, 2021		December 31, 2020		% change
Total assets	$	8,718	$	8,397	4
Investment securities	2,600		2,197		18
Loans held for investment, net	5,218		5,233		—
Deposit liabilities	7,745		7,387		5
Other bank borrowings	103		90		15

As of March 31, 2021, ASB was one of Hawaii’s largest financial institutions based on assets of $8.7 billion and deposits of $7.7 billion.

As of March 31, 2021, ASB’s unused FHLB borrowing capacity was approximately $2.0 billion. As of March 31, 2021, ASB had commitments to borrowers for loans and unused lines and letters of credit of $1.9 billion, of which, commitments to lend to borrowers whose loan terms have been modified in troubled debt restructurings were nil. Management believes ASB’s current sources of funds will enable it to meet these obligations while maintaining liquidity at satisfactory levels.

For the three months ended March 31, 2021, net cash provided by ASB’s operating activities was $17 million. Net cash used during the same period by ASB’s investing activities was $448 million, primarily due to purchases of available-for-sale securities of $782 million, purchases of held-to-maturity securities of $88 million, additions to premises and equipment of $3 million, contributions to low income housing investments of $3 million and a net increase in stock from the Federal Home Loan Bank of $1 million, partly offset by the receipt of repayments from investment securities of $205 million, proceeds from the sale of investment securities of $197 million, a net decrease in loans of $24 million and proceeds from redemption of bank owned life insurance of $3 million. Net cash provided by financing activities during this period was $362 million, primarily due to increases in deposit liabilities of $358 million and a net increase in repurchase agreements of $13 million, partly offset by a net decrease in mortgage escrow deposits of $4 million and $5 million in common stock dividends to HEI (through ASB Hawaii).

For the three months ended March 31, 2020, net cash provided by ASB’s operating activities was $29 million. Net cash used during the same period by ASB’s investing activities was $140 million, primarily due to purchases of available-for-sale securities of $159 million, a net increase in loans of $66 million, additions to premises and equipment of $2 million and contributions to low income housing investments of $1 million, partly offset by the receipt of repayments from investment securities of $82 million and proceeds from the sale of low income housing investments of $7 million. Net cash provided by financing activities during this period was $122 million, primarily due to increases in deposit liabilities of $112 million and a net increase in other bank borrowings with original maturities of three months or less of $42 million, partly offset by a net decrease in mortgage escrow deposits of $5 million and $28 million in common stock dividends to HEI (through ASB Hawaii).

ASB believes that maintaining a satisfactory regulatory capital position provides a basis for public confidence, affords protection to depositors, helps to ensure continued access to capital markets on favorable terms and provides a foundation for growth. FDIC regulations restrict the ability of financial institutions that are not well-capitalized to compete on the same terms as well-capitalized institutions, such as by offering interest rates on deposits that are significantly higher than the rates offered by competing institutions. Beginning in the second quarter of 2020, ASB has adopted the community bank leverage ratio framework and is required to report only its leverage ratio. As of March 31, 2021 and December 31, 2020, ASB was well-capitalized (well-capitalized ratio requirements noted in parentheses) with a Tier-1 leverage ratio of 8.3% (5.0%) and 8.4% (5.0%), respectively. All dividends are subject to review by the OCC and FRB and receipt of a letter from the FRB

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communicating the agencies’ non-objection to the payment of any dividend ASB proposes to declare and pay to HEI (through ASB Hawaii).

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company considers interest-rate risk (a non-trading market risk) to be a significant market risk for ASB as it could potentially have material impacts on the Company’s results of operations, financial condition and liquidity. For additional quantitative and qualitative information about the Company’s market risks, see HEI’s and Hawaiian Electric’s Quantitative and Qualitative Disclosures About Market Risk in Part II, Item 7A of HEI’s 2020 Form 10-K (pages 74 to 76).

ASB’s interest-rate risk sensitivity measures as of March 31, 2021 and December 31, 2020 constitute “forward-looking statements” and were as follows:

Change in interest rates	Change in NII (gradual change in interest rates)				Change in EVE (instantaneous change in interest rates)
(basis points)	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
+300	5.1	%	7.0	%	18.5	%	31.4	%
+200	3.5		5.0		13.5		23.9
+100	1.9		2.7		7.6		14.0
-100	(2.1)		(1.9)		(14.6)		(25.2)

ASB’s net interest income (NII) sensitivity profile was less asset sensitive as of March 31, 2021 as compared to December 31, 2020, primarily driven by the increase in market rates and core deposit funded investment securities purchases. The increase in market rates decreased prepayment expectations in the bank’s fixed-rate mortgage and mortgage-backed investment portfolios, driving decreased asset sensitivity. In addition, the deployment of strong core deposit growth into new fixed-rate investment purchases further contributed to decreased sensitivity.

Economic value of equity (EVE) sensitivity decreased as of March 31, 2021 compared to December 31, 2020 as the duration of assets lengthened. The steepening of the yield curve led to slower prepayment expectations and lengthened the duration of the fixed-rate mortgage and mortgage-backed investment portfolios.

The computation of the prospective effects of hypothetical interest rate changes on the NII sensitivity and the percentage change in EVE is based on numerous assumptions, including relative levels of market interest rates, loan prepayments, balance changes and pricing strategies, and should not be relied upon as indications of actual results. To the extent market conditions and other factors vary from the assumptions used in the simulation analysis, actual results may differ materially from the simulation results. NII sensitivity analysis measures the change in ASB’s twelve-month, pretax NII in alternate interest rate scenarios, and is intended to help management identify potential exposures in ASB’s current balance sheet and formulate appropriate strategies for managing interest rate risk. The simulation does not contemplate any actions that ASB management might undertake in response to changes in interest rates. Further, the changes in NII vary in the twelve-month simulation period and are not necessarily evenly distributed over the period. These analyses are for analytical purposes only and do not represent management’s views of future market movements, the level of future earnings or the timing of any changes in earnings within the twelve month analysis horizon. The actual impact of changes in interest rates on NII will depend on the magnitude and speed with which rates change, actual changes in ASB’s balance sheet and management’s responses to the changes in interest rates.

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Item 4. Controls and Procedures

HEI:

Disclosure Controls and Procedures

The Company maintains a set of disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Securities Exchange Act of 1934, as amended (Exchange Act), is recorded, processed, summarized and reported within the time periods specified in SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, as defined in Rule 13a-15(e) or Rule 15d-15(e) of the Exchange Act. Management, including the Company’s Chief Executive Officer and Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective, as of the end of the period covered by this report, at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There have been no changes in internal control over financial reporting during the first quarter of 2021 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Hawaiian Electric:

Disclosure Controls and Procedures

Hawaiian Electric maintains a set of disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed by Hawaiian Electric in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC’s rules and forms, and that such information is accumulated and communicated to Hawaiian Electric’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

An evaluation was performed under the supervision and with the participation of Hawaiian Electric’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of Hawaiian Electric’s disclosure controls and procedures, as defined in Rule 13a-15(e) or Rule 15d-15(e) of the Exchange Act. Management, including Hawaiian Electric’s Chief Executive Officer and Chief Financial Officer, concluded that Hawaiian Electric’s disclosure controls and procedures were effective, as of the end of the period covered by this report, at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There have been no changes in internal control over financial reporting during the first quarter of 2021 that have materially affected, or are reasonably likely to materially affect, Hawaiian Electric’s internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

The descriptions of legal proceedings (including judicial proceedings and proceedings before the PUC and environmental and other administrative agencies) in HEI’s and Hawaiian Electric’s 2020 Form 10-K (see “Part I. Item 3. Legal Proceedings” and proceedings referred to therein) and this Form 10-Q (see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Notes 3 and 4 of the Condensed Consolidated Financial Statements) are incorporated by reference in this Item 1. With regard to any pending legal proceeding, alternative dispute resolution, such as mediation or settlement, may be pursued where appropriate, with such efforts typically maintained in confidence unless and until a resolution is achieved. Certain HEI subsidiaries (including Hawaiian Electric and its subsidiaries, ASB and Pacific Current and its subsidiaries) may also be involved in ordinary routine PUC proceedings, environmental proceedings and litigation incidental to their respective businesses.

Item 1A. Risk Factors

For information about Risk Factors, see pages 18 to 30 of HEI’s and Hawaiian Electric’s 2020 Form 10-K and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures about Market Risk” and the Condensed Consolidated Financial Statements herein. Also, see “Cautionary Note Regarding Forward-Looking Statements” on pages iv through vi herein.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(c) Purchases of HEI common shares were made on the open market during the first quarter of 2021 to satisfy the requirements of certain plans as follows:

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
January 1 to 31, 2021	18,229	$34.08	—	NA
February 1 to 28, 2021	27,571	$34.29	—	NA
March 1 to 31, 2021	179,276	$38.47	—	NA

NA Not applicable.

* Trades (total number of shares purchased) are reflected in the month in which the order is placed.

**The purchases were made to satisfy the requirements of the DRIP, the HEIRSP and the ASB 401(k) Plan for shares purchased for cash or by the reinvestment of dividends by participants under those plans and none of the purchases were made under publicly announced repurchase plans or programs. Average prices per share are calculated exclusive of any commissions payable to the brokers making the purchases for the DRIP, the HEIRSP and the ASB 401(k) Plan. Of the “Total number of shares purchased,” 12,139 of the 18,229 shares, 16,288 of the 27,571 shares and 154,919 of the 179,276 shares were purchased for the DRIP; 4,740 of the 18,229 shares, 9,176 of the 27,571 shares and 19,319 of the 179,276 shares were purchased for the HEIRSP; and the remainder was purchased for the ASB 401(k) Plan. The repurchased shares were issued for the accounts of the participants under registration statements registering the shares issued under these plans.

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Item 6. Exhibits

HEI Exhibit 10	Form of Restricted Stock Unit Agreement, pursuant to 2010 Equity and Incentive Plan, as amended and restated February 5, 2021.
HEI Exhibit 18.1	Preferability letter of Deloitte & Touche LLP, Independent Registered Public Accounting Firm
HEI Exhibit 31.1	Certification Pursuant to Rule 13a-14 promulgated under the Securities Exchange Act of 1934 of Constance H. Lau (HEI Chief Executive Officer)
HEI Exhibit 31.2	Certification Pursuant to Rule 13a-14 promulgated under the Securities Exchange Act of 1934 of Gregory C. Hazelton (HEI Chief Financial Officer)
HEI Exhibit 32.1	HEI Certification Pursuant to 18 U.S.C. Section 1350
HEI Exhibit 101.INS	XBRL Instance Document - the instance document does not appear on the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
HEI Exhibit 101.SCH	Inline XBRL Taxonomy Extension Schema Document
HEI Exhibit 101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
HEI Exhibit 101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
HEI Exhibit 101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
HEI Exhibit 101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
HEI Exhibit 104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
Hawaiian Electric Exhibit 18.2	Preferability letter of Deloitte & Touche LLP, Independent Registered Public Accounting Firm. See Exhibit 18.1 herein
Hawaiian Electric Exhibit 31.3	Certification Pursuant to Rule 13a-14 promulgated under the Securities Exchange Act of 1934 of Scott W. H. Seu (Hawaiian Electric Chief Executive Officer)
Hawaiian Electric Exhibit 31.4	Certification Pursuant to Rule 13a-14 promulgated under the Securities Exchange Act of 1934 of Tayne S. Y. Sekimura (Hawaiian Electric Chief Financial Officer)
Hawaiian Electric Exhibit 32.2	Hawaiian Electric Certification Pursuant to 18 U.S.C. Section 1350

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized. The signature of the undersigned companies shall be deemed to relate only to matters having reference to such companies and any subsidiaries thereof.

HAWAIIAN ELECTRIC INDUSTRIES, INC.		HAWAIIAN ELECTRIC COMPANY, INC.
(Registrant)		(Registrant)
By	/s/ Constance H. Lau	By	/s/ Scott W. H. Seu
	Constance H. Lau		Scott W. H. Seu
	President and Chief Executive Officer		President and Chief Executive Officer
	(Principal Executive Officer of HEI)		(Principal Executive Officer of Hawaiian Electric)
By	/s/ Gregory C. Hazelton	By	/s/ Tayne S. Y. Sekimura
	Gregory C. Hazelton		Tayne S. Y. Sekimura
	Executive Vice President		Senior Vice President
	and Chief Financial Officer		and Chief Financial Officer
	(Principal Financial Officer of HEI)		(Principal Financial Officer of Hawaiian Electric)
Date: May 10, 2021		Date: May 10, 2021

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EX-10

HEI Exhibit 10

RESTRICTED STOCK UNITS AGREEMENT

PURSUANT TO

THE 2010 EQUITY AND INCENTIVE PLAN

OF

HAWAIIAN ELECTRIC INDUSTRIES, INC.,

AS AMENDED AND RESTATED

This Restricted Stock Units Agreement (“Agreement”) is made and entered into as of ______________ (the “Date of Grant”), by and between Hawaiian Electric Industries, Inc., a Hawaii corporation (the “Company”), and ______________ (the “Employee”). Capitalized terms not defined herein shall have the meanings assigned to them in the 2010 Equity and Incentive Plan of Hawaiian Electric Industries, Inc., as amended and restated (“Plan”).

WHEREAS, the Compensation Committee of the Company’s Board of Directors or a subcommittee thereof (hereinafter referred to as the “Committee”), appointed to administer the Plan, has determined that it would be to the advantage and best interest of the Company and its shareholders to grant to the Employee Restricted Stock Units pursuant to the Plan as an inducement to the Employee to remain in the service of the Company or its Subsidiaries and as a long-term incentive for sustained high levels of performance for the Company and its Subsidiaries; and

WHEREAS, the Committee has instructed the Company to issue said Restricted Stock Units as authorized under the Plan, pursuant to the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:

1.Number of Units. The Company hereby grants to the Employee #,### Restricted Stock Units (the “Restricted Stock Units”), subject to all of the terms and conditions of this Agreement and the Plan.

2.Lapse of Restrictions; Settlement. Subject to Section 4 below, the restrictions with respect to the Restricted Share Units shall lapse in accordance with the schedule attached hereto as Exhibit A. Upon the lapse of restrictions relating to a Restricted Stock Unit, the Company shall, as soon as reasonably practicable thereafter, issue to the Employee (or the Employee’s beneficiary designated on the form attached hereto as Exhibit B, as the case may be), net of any withholding for taxes in accordance with Section 8 below, one share of Common Stock (in either certificated or book entry form) in settlement of each Restricted Stock Unit with respect to which such restrictions have lapsed.

3.Adjustments and Modifications. In the event of a Change in Capitalization, an appropriate and proportionate equitable adjustment shall be made in accordance with Section 6 of the Plan in the number of Restricted Stock Units subject to this Agreement. The Company will make cash payments in settlement of any fractional shares at the time the shares of Common Stock are issued. This Agreement may also be modified, in the discretion of the Committee, both with regard to the Vesting Schedule attached as Exhibit A hereto and termination, by leaves of absence, changes from full to part time employment, partial disability or other changes in Employee’s status.

4.Termination of Service. If the Employee’s employment or service with the Company or any Subsidiary is terminated for any reason (including, but not limited to, voluntary termination by Employee and termination of Employee without Cause, including, but not limited to, termination due to elimination of Employee’s position) other than death, Disability or Retirement, the Employee shall forfeit any or all of the Restricted Stock Units for which the restrictions have not yet lapsed (the “Unvested Stock”). If the Employee’s employment or service with the Company or any Subsidiary is terminated by reason of death, Disability or Retirement, then (i) restrictions based on Performance Goals, if any, shall lapse based on actual performance during the full performance period and (ii) restrictions based on lapse of time shall be deemed to have lapsed, with respect to the one-third of the RSUs that are scheduled to vest in the annual vesting installment period during which termination occurs, pro-rata based on a ratio in which the numerator is the number of completed months within the respective annual vesting installment period during which termination occurs and the denominator is twelve, and the Employee shall forfeit all remaining Unvested Stock. As used in this Agreement, a “month” is a calendar month, and a “completed month” requires employment or service from the first day through the last day of the month. However, in that calendar month in which the Restricted Stock Units are granted, a completed month only requires employment or service from the Date of Grant through the last day of that month. Except as provided in Sections 4(a) and 4(b) hereof, the restrictions on Unvested Stock shall otherwise terminate in accordance with the schedule for the lapse of the restrictions set forth in Exhibit A hereto.

5.Notices. All notices and other communications under this Agreement shall be in writing and shall be given by hand delivery, facsimile or first class mail and shall be deemed to have been duly given upon hand delivery, or three days after mailing or 24 hours after transmission by facsimile. Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of its Secretary and any notice to be given to the Employee shall be addressed to him at the address given beneath his signature hereto. By a notice given pursuant to this Section 5, either party may hereafter designate a different address for notices to be given to such party. Any notice which is required to be given to the Employee shall, if the Employee is then deceased, be given to the Employee’s personal representative if such representative has previously informed the Company of his status and address by written notice under this Section 5.

6.Rights as a Stockholder. Subject to the restrictions set forth in the Plan and this Agreement, the Employee shall not have any of the rights or privileges of a stockholder

of the Company with respect to the Restricted Stock Units granted pursuant to this Agreement unless and until shares of Common Stock have been issued and delivered to the Employee following the lapse of restrictions on such Restricted Stock Units. Notwithstanding the foregoing, the Employee shall have the right to receive dividend equivalents with respect to the Restricted Stock Units, which dividend equivalents shall accumulate and be paid upon the delivery of the underlying shares of Common Stock in accordance with Section 2 hereof. The dividend equivalents shall be calculated on a cumulative basis on each dividend payment date during the period while the Restricted Stock Units are outstanding and shall be converted into shares of HEI common stock based on the price of the HEI Common Stock on the relevant payment date. The accumulated dividend equivalents shall be applied only to the shares of HEI Common Stock that are earned pursuant to the Restricted Stock Units. Any such dividend equivalents shall be subject to the same terms and conditions as are applicable to the Restricted Stock Units awarded hereunder (including without limitation as to time of vesting and payment) and may be reduced to satisfy any or all of an Employee’s tax liabilities owed in connection with the Restricted Stock Units granted pursuant to this Agreement.

7.Protections Against Violations of Agreement. No purported sale, assignment, mortgage, hypothecation, alienation, transfer, pledge, encumbrance, gift, transfer in trust or other disposition of, or creation of a security interest in or lien on, any of the Restricted Stock Units (or the underlying shares of Common Stock) by any holder thereof in violation of the provisions of this Agreement or the Plan will be valid, and the Company will not transfer any of such Restricted Stock Units on its books (or issue shares of Common Stock in settlement thereof), nor will any dividends be credited with respect thereto, unless and until there has been full compliance with such provisions to the satisfaction of the Company. The foregoing restrictions are in addition to and not in lieu of any other remedies, legal or equitable, available to enforce said provisions.

8.Taxes. Upon the lapse of restrictions with respect to the Restricted Stock Units (and/or any later settlement thereof), the Company shall withhold from the shares of Common Stock to be issued to the Employee, the number of shares required to cover an amount of taxes that the Company determines does not exceed the statutory maximum it is required to withhold under applicable tax laws and regulations in any applicable jurisdiction with respect to the Restricted Stock Units. The number of shares required to be withheld shall be based on the Fair Market Value of the Common Stock on the settlement date. Any fractional share of Common Stock resulting from such withholding shall be paid in cash.

Upon the Employee’s attainment of Retirement eligibility before the lapse of restrictions, any employment taxes thereafter (but prior to the lapse of restrictions) payable by the Employee shall be satisfied by withholding from the Employee’s regular salary payable immediately following the date the employment tax obligation arises (and, to the extent insufficient, by cash payment by the Employee).

9.Failure to Enforce Not a Waiver. The failure of the Company to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.

10.Governing Law. This Agreement shall be governed by and construed according to the laws of the State of Hawaii without regard to its principles of conflict of laws.

11.Incorporation of Plan. The Plan is hereby incorporated by reference and made a part hereof, and the Restricted Stock Units and this Agreement shall be subject to all terms and conditions of the Plan.

12.Entire Agreement; Relationship to the Plan. This Agreement and the Plan set forth the sole entire agreement and understanding between the parties as to the subject matter hereof, and merge with and supersede all prior and contemporaneous discussions, agreements and understandings of every kind and any nature between them with respect to the subject matter hereof. Except to the extent provided in Section 3 or 15 hereof, and except to the extent that provisions hereof are by their terms subject to any subsequent amendment of the Plan, this Agreement may not be changed or modified, except by agreement in writing, signed by the Company and the Employee. In the event of any conflict or inconsistency between this Agreement and the Plan as written on the Date of Grant, the Plan shall govern.

13.Survival of Terms. This Agreement shall apply to and bind the Employee, the Employee’s heirs, legatees, executors and administrators, the Company and the Company’s legal successors.

14.Agreement Not a Contract for Services. Neither the Plan, the granting of the Restricted Stock Units, this Agreement nor any other action taken pursuant to the Plan shall constitute or be evidence of any agreement or understanding, express or implied, that the Employee has a right to continue to provide services as an officer, director, employee, consultant or advisor of the Company or any Subsidiary or Affiliate of the Company for any period of time or at any specific rate of compensation, or shall interfere with or restrict in any way the rights of the Company and its Subsidiaries, which are hereby expressly reserved, to discharge the Employee at any time for any reason whatsoever, with or without Cause.

15.Authority of the Committee. The Committee shall have full authority to interpret and construe the terms of the Plan and this Agreement. The determination of the Committee as to any such matter of interpretation or construction, including, without limitation, as to any adjustment or related matter under Section 3 hereof or any matter under Section 4 hereof, shall be final, binding and conclusive.

16.Representations. The Employee has reviewed with his or her own tax advisors the federal, state, local and foreign tax consequences of the transactions contemplated by this Agreement. The Employee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Employee understands that he or she (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions contemplated by this Agreement.

17.Acceptance. The Employee hereby acknowledges receipt of a copy of the Plan and this Agreement. The Employee has read and understands the terms and provisions thereof, and accepts the Restricted Stock Units subject to all of the terms and conditions of the Plan and this Agreement. The Employee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan and this Agreement.

18.Committee Action. Execution of this Agreement by the Chair or other member of the Committee signifies that this Agreement, the award of Restricted Stock Units made hereby and the conditions upon which the restrictions on the Restricted Stock Units shall lapse or be satisfied have been approved by the Committee either at a meeting of the Committee or by the unanimous written consent of its members.

19.Section 409A. To the extent applicable, it is intended that this Agreement comply with the provisions of Section 409A (“Section 409A”) of the Code. This Agreement will be administered and interpreted in a manner consistent with this intent, and any provision that would cause this Agreement to fail to satisfy Section 409A will have no force and effect until amended to comply therewith (which amendment may be retroactive to the extent permitted by Section 409A). Notwithstanding anything contained herein to the contrary, the Employee shall not be considered to have terminated employment with the Company for purposes of this Agreement and no payments shall be due to the Employee under this Agreement which are payable upon the Employee’s termination of employment unless the Employee would be considered to have incurred a “separation from service” from the Company within the meaning of Section 409A. To the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Agreement during the six-month period immediately following the Employee’s termination of employment shall instead be paid on the first business day after the date that is six months following the Employee’s termination of employment (or upon the Employee’s death, if earlier).

20.Severability. If one or more of the provisions of this Agreement shall be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the invalid, illegal or unenforceable provisions shall be deemed null and void; provided, however, to the extent permissible by law, any provisions which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Agreement to be construed so as to foster the intent of this Agreement and the Plan and to avoid any such finding of invalidity, illegality or unenforceability.

21.Headings. Headings in this Agreement are used solely for the convenience of the parties and shall not be deemed to be a limitation upon or descriptive of the contents of any Section hereof.

22.No Limit on Other Arrangements.

(a)Nothing contained in this Agreement shall be construed to prevent the Company or any Subsidiary thereof from adopting or continuing in effect other compensation arrangements,

which may, but need not, provide for the grant of any type of equity-based award (subject to stockholder approval if such approval is required).

(b)Nothing contained in this Agreement shall be construed to prevent the Company or any Subsidiary thereof from taking any corporate action which is deemed by it to be appropriate or in its best interest, whether or not such action would have an adverse effect on the Restricted Stock Units granted under this Agreement. No employee, beneficiary or other person shall have any claim against the Company or any subsidiary thereof as a result of any such action.

23.Signature in Counterparts. This Agreement may be signed in two or more counterparts, each of which shall be deemed an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the Date of Grant.

HAWAIIAN ELECTRIC INDUSTRIES, INC.

By: _______________________________________    

Chair or Member of the Compensation Committee

By: _______________________________________    

Executive Vice President, General Counsel, Chief Administrative Officer and Corporate Secretary

EMPLOYEE

_______________________________________    

Xxxxx Xxxxxxxxx

EX-18.1

HEI Exhibit 18.1

Hawaiian Electric Industries, Inc.

1001 Bishop Street, Suite 2900

Honolulu, HI 96813

Hawaiian Electric Company, Inc.

1001 Bishop Street, Suite 2500

Honolulu, HI 96813

Dear Sirs/Madams:

At your request, we have read the description included in your Quarterly Report on combined Form 10-Q for Hawaiian Electric Industries, Inc. and subsidiaries, including its wholly owned subsidiary, Hawaiian Electric Company, Inc. and subsidiaries (collectively referred to as “the Companies”), to the Securities and Exchange Commission for the quarter ended March 31, 2021, of the facts relating to the accounting principle change in the methodology to determine the market-related value of assets (“MRVA”) from the calculated value method to the fair value method for its fixed income securities portfolio in the calculation of the expected return on plan assets component of net periodic pension cost and net periodic benefit cost for its defined benefit plans. Note 8 to such financial statements contains a description of your adoption of the accounting principle change. We believe, on the basis of the facts so set forth and other information furnished to us by appropriate officials of the Companies, that the accounting change described in your combined Form 10-Q is to an alternative accounting principle that is preferable under the circumstances.

We have not audited any consolidated financial statements of the Companies and its subsidiaries as of any date or for any period subsequent to December 31, 2020. Therefore, we are unable to express, and we do not express, an opinion on the facts set forth in the above-mentioned Form 10-Q, on the related information furnished to us by officials of the Companies, or on the financial position, results of operations, or cash flows of the Companies and its subsidiaries as of any date or for any period subsequent to December 31, 2020.

Yours truly,

/s/ Deloitte & Touche LLP

EX-31.1

HEI Exhibit 31.1

CERTIFICATION

I, Constance H. Lau, certify that:

1. I have reviewed this report on Form 10-Q for the quarter ended March 31, 2021 of Hawaiian Electric Industries, Inc. (“registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 10, 2021
	/s/ Constance H. Lau
	Constance H. Lau
	President and Chief Executive Officer

EX-31.2

HEI Exhibit 31.2

CERTIFICATION

I, Gregory C. Hazelton, certify that:

1. I have reviewed this report on Form 10-Q for the quarter ended March 31, 2021 of Hawaiian Electric Industries, Inc. (“registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 10, 2021
	/s/ Gregory C. Hazelton
	Gregory C. Hazelton
	Executive Vice President and Chief Financial Officer

EX-31.3

Hawaiian Electric Exhibit 31.3

CERTIFICATION

I, Scott W. H. Seu, certify that:

1. I have reviewed this report on Form 10-Q for the quarter ended March 31, 2021 of Hawaiian Electric Company, Inc. (“registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 10, 2021
	/s/ Scott W. H. Seu
	Scott W. H. Seu
	President and Chief Executive Officer

EX-31.4

Hawaiian Electric Exhibit 31.4

CERTIFICATION

I, Tayne S. Y. Sekimura, certify that:

1.I have reviewed this report on Form 10-Q for the quarter ended March 31, 2021 of Hawaiian Electric Company, Inc. (“registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 10, 2021
	/s/ Tayne S. Y. Sekimura
	Tayne S. Y. Sekimura
	Senior Vice President and Chief Financial Officer

EX-32.1

HEI Exhibit 32.1

Hawaiian Electric Industries, Inc.

Certification Pursuant to

18 U.S.C. Section 1350

In connection with the Quarterly Report of Hawaiian Electric Industries, Inc. (HEI) on Form 10-Q for the quarter ended March 31, 2021, as filed with the Securities and Exchange Commission (the Report), each of Constance H. Lau and Gregory C. Hazelton, Chief Executive Officer and Chief Financial Officer, respectively, of HEI, certify, pursuant to 18 U.S.C. Section 1350, that to the best of her or his knowledge:

(1)   The Report complies with the requirements of section 13(a) of the Securities Exchange Act of 1934, as amended; and

(2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of HEI and its subsidiaries as of, and for, the periods presented in this report.

Date: May 10, 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

A signed original of this written statement has been provided to HEI and will be retained by HEI and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Hawaiian Electric Exhibit 32.2

Hawaiian Electric Company, Inc.

Certification Pursuant to

18 U.S.C. Section 1350

In connection with the Quarterly Report of Hawaiian Electric Company, Inc. (Hawaiian Electric) on Form 10-Q for the quarter ended March 31, 2021, as filed with the Securities and Exchange Commission (the Hawaiian Electric Report), each of Scott W. H. Seu and Tayne S. Y. Sekimura, Chief Executive Officer and Chief Financial Officer, respectively, of Hawaiian Electric, certify, pursuant to 18 U.S.C. Section 1350, that to the best of his or her knowledge:

(1)   The Hawaiian Electric Report complies with the requirements of section 13(a) of the Securities Exchange Act of 1934, as amended; and

(2)   The Hawaiian Electric information contained in the Hawaiian Electric Report fairly presents, in all material respects, the financial condition and results of operations of Hawaiian Electric and its subsidiaries as of, and for, the periods presented in this report. 

Date: May 10, 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

A signed original of this written statement has been provided to Hawaiian Electric and will be retained by Hawaiian Electric and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2021	Apr. 23, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	1-8503
Entity Tax Identification Number	99-0208097
Entity Incorporation, State or Country Code	HI
Entity Address, Address Line One	1001 Bishop Street, Suite 2900
Entity Address, City or Town	Honolulu
Entity Address, State or Province	HI
Entity Address, Postal Zip Code	96813
Entity Registrant Name	HAWAIIAN ELECTRIC INDUSTRIES INC
City Area Code	808
Local Phone Number	543-5662
Title of each class	Common Stock, Without Par Value
Trading Symbol	HE
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		109,181,493
Entity Central Index Key	0000354707
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Hawaiian Electric Company, Inc. and Subsidiaries
Entity Information [Line Items]
Document Type	10-Q
Entity File Number	1-4955
Entity Tax Identification Number	99-0040500
Entity Incorporation, State or Country Code	HI
Entity Address, Address Line One	1001 Bishop Street, Suite, 2500
Entity Address, City or Town	Honolulu
Entity Address, State or Province	HI
Entity Address, Postal Zip Code	96813
Entity Registrant Name	HAWAIIAN ELECTRIC COMPANY INC
City Area Code	808
Local Phone Number	543-7771
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,324,376
Entity Central Index Key	0000046207
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1

XML

Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues
Total revenues	$ 642,946	$ 677,186
Expenses
Total expenses	544,915	617,484
Operating income (loss)
Total operating income	98,031	59,702
Retirement defined benefits credit (expense)—other than service costs	2,435	(934)
Interest expense, net—other than on deposit liabilities and other bank borrowings	(23,736)	(21,775)
Allowance for borrowed funds used during construction	747	688
Allowance for equity funds used during construction	2,191	2,015
Gain on sale of investment securities, net	528	0
Income before income taxes	80,196	39,696
Income taxes	15,365	5,803
Net income	64,831	33,893
Preferred stock dividends of subsidiaries	473	473
Net income for common stock	$ 64,358	$ 33,420
Basic earnings per common share (in dollars per share)	$ 0.59	$ 0.31
Diluted earnings per common share (in dollars per share)	$ 0.59	$ 0.31
Weighted-average number of common shares outstanding (in shares)	109,221	109,051
Net effect of potentially dilutive shares (in shares)	271	314
Weighted-average shares assuming dilution (in shares)	109,492	109,365
Electric utility
Revenues
Total revenues	$ 564,864	$ 597,442
Expenses
Total expenses	495,750	553,484
Operating income (loss)
Total operating income	69,114	43,958
Income before income taxes	55,090	29,686
Income taxes	11,233	5,282
Net income	43,857	24,404
Preferred stock dividends of subsidiaries	499	499
Net income for common stock	43,358	23,905
Bank
Revenues
Total revenues	77,131	79,738
Expenses
Total expenses	41,835	60,335
Operating income (loss)
Total operating income	35,296	19,403
Income before income taxes	37,102	18,969
Income taxes	7,546	3,208
Net income	29,556	15,761
Preferred stock dividends of subsidiaries	0	0
Net income for common stock	29,556	15,761
Other
Revenues
Total revenues	951	6
Expenses
Total expenses	7,330	3,665
Operating income (loss)
Total operating income	(6,379)	(3,659)
Income before income taxes	(11,996)	(8,959)
Income taxes	(3,414)	(2,687)
Net income	(8,582)	(6,272)
Preferred stock dividends of subsidiaries	(26)	(26)
Net income for common stock	(8,556)	(6,246)
Hawaiian Electric Company, Inc. and Subsidiaries
Revenues
Total revenues	564,864	597,442
Expenses
Fuel oil	127,427	173,221
Purchased power	142,296	139,816
Other operation and maintenance	114,570	127,547
Depreciation	57,355	55,850
Taxes, other than income taxes	54,102	57,050
Total expenses	495,750	553,484
Operating income (loss)
Total operating income	69,114	43,958
Retirement defined benefits credit (expense)—other than service costs	1,021	(381)
Interest expense and other charges, net	(17,983)	(16,594)
Allowance for borrowed funds used during construction	747	688
Allowance for equity funds used during construction	2,191	2,015
Income before income taxes	55,090	29,686
Income taxes	11,233	5,282
Net income	43,857	24,404
Preferred stock dividends of subsidiaries	229	229
Net income attributable to Hawaiian Electric	43,628	24,175
Preferred stock dividends of Hawaiian Electric	270	270
Net income for common stock	$ 43,358	$ 23,905

XML

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net income for common stock	$ 64,358	$ 33,420
Net unrealized gains on available-for-sale investment securities:
Net unrealized gains on available-for-sale investment securities arising during the period, net of taxes of $(16,616) and $7,120, respectively	(45,390)	19,448
Reclassification adjustment for net realized gains included in net income, net of taxes of $(142) and nil, respectively	(387)	0
Derivatives qualifying as cash flow hedges:
Unrealized interest rate hedging losses arising during the period, net of taxes of $542 and $(619), respectively	1,562	(1,784)
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes	6,010	5,706
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(5,811)	(5,158)
Other comprehensive income (loss), net of taxes	(44,016)	18,212
Comprehensive income attributable to Hawaiian Electric Industries, Inc.	20,342	51,632
Hawaiian Electric Company, Inc. and Subsidiaries
Net income for common stock	43,358	23,905
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes	5,845	5,184
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(5,811)	(5,158)
Other comprehensive income (loss), net of taxes	34	26
Comprehensive income attributable to Hawaiian Electric Industries, Inc.	$ 43,392	$ 23,931

XML

Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net unrealized gains on available-for-sale investment securities:
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, tax	$ (16,616)	$ 7,120
Reclassification adjustment for net realized gains included in net income, tax	(142)	0
Derivatives qualifying as cash flow hedges:
Unrealized interest rate hedging arising during the period, tax	542	(619)
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax	2,084	1,986
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, tax	(2,015)	(1,789)
Hawaiian Electric Company, Inc. and Subsidiaries
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, tax	2,027	1,798
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, tax	$ (2,015)	$ (1,789)

XML

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 277,579	$ 341,421
Restricted cash	14,067	17,558
Accounts receivable and unbilled revenues, net	273,197	281,216
Available-for-sale investment securities, at fair value	2,305,257	1,970,417
Held-to-maturity investment securities, at amortized cost	295,046	226,947
Stock in Federal Home Loan Bank, at cost	10,000	8,680
Loans held for investment, net	5,218,288	5,232,642
Loans held for sale, at lower of cost or fair value	23,637	28,275
Property, plant and equipment, net of accumulated depreciation	5,283,768	5,265,735
Regulatory assets	773,426	766,708
Other	639,505	629,149
Goodwill	82,190	82,190
Utility property, plant and equipment
Total property, plant and equipment, net	5,283,768	5,265,735
Current assets
Cash and cash equivalents	277,579	341,421
Other long-term assets
Operating lease right-of-use assets	162,713	153,069
Total assets	15,358,673	15,004,007
Liabilities
Accounts payable	164,936	182,347
Interest and dividends payable	32,405	23,547
Deposit liabilities	7,745,294	7,386,957
Short-term borrowings—other than bank	100,242	129,379
Other bank borrowings	102,685	89,670
Long-term debt, net—other than bank	2,229,738	2,119,129
Deferred income taxes	380,365	395,089
Operating lease liabilities	175,334	160,432
Regulatory liabilities	956,139	959,786
Defined benefit pension and other postretirement benefit plans liability	558,191	567,438
Other	557,758	618,438
Total liabilities	13,003,087	12,632,212
Capitalization
Retained earnings	687,600	660,398
Accumulated other comprehensive loss, net of tax benefits	(45,280)	(1,264)
Total shareholders’ equity	2,321,293	2,337,502
Preferred stock of subsidiaries - not subject to mandatory redemption	34,293	34,293
Commitments and contingencies
Current liabilities
Interest and dividends payable	32,405	23,547
Deferred credits and other liabilities
Deferred income taxes	380,365	395,089
Shareholders’ equity
Preferred stock, no par value, authorized 10,000,000 shares; issued: none	0	0
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 109,281,493 shares and 109,181,124 shares at March 31, 2021 and December 31, 2020, respectively	1,678,973	1,678,368
Retained earnings	687,600	660,398
Accumulated other comprehensive loss, net of tax benefits	(45,280)	(1,264)
Total shareholders’ equity	2,321,293	2,337,502
Total liabilities and shareholders’ equity	15,358,673	15,004,007
Hawaiian Electric Company, Inc. and Subsidiaries
Assets
Cash and cash equivalents	51,743	47,360
Restricted cash	11,506	15,966
Property, plant and equipment, net of accumulated depreciation	4,954,711	4,937,170
Regulatory assets	22,200
Utility property, plant and equipment
Land	51,611	51,611
Plant and equipment	7,551,879	7,509,343
Less accumulated depreciation	(2,859,719)	(2,819,079)
Construction in progress	203,988	188,342
Utility property, plant and equipment, net	4,947,759	4,930,217
Nonutility property, plant and equipment, less accumulated depreciation	6,952	6,953
Total property, plant and equipment, net	4,954,711	4,937,170
Current assets
Cash and cash equivalents	51,743	47,360
Customer accounts receivable, net	141,649	147,832
Accrued unbilled revenues, net	101,813	101,036
Other accounts receivable, net	5,073	7,673
Fuel oil stock, at average cost	74,688	58,238
Materials and supplies, at average cost	69,726	67,344
Prepayments and other	36,419	44,083
Regulatory assets	54,322	30,435
Total current assets	546,939	519,967
Other long-term assets
Operating lease right-of-use assets	138,534	127,654
Regulatory assets	719,104	736,273
Other	135,620	136,309
Total other long-term assets	993,258	1,000,236
Total assets	6,494,908	6,457,373
Liabilities
Interest and dividends payable	28,172	20,350
Deferred income taxes	396,758	397,798
Capitalization
Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 17,324,376 shares at March 31, 2021 and December 31, 2020)	115,515	115,515
Premium on capital stock	746,987	746,987
Retained earnings	1,297,768	1,282,335
Accumulated other comprehensive loss, net of tax benefits	(2,885)	(2,919)
Total shareholders’ equity	2,157,385	2,141,918
Long-term debt, net	1,675,863	1,561,302
Total capitalization	3,867,541	3,737,513
Preferred stock of subsidiaries - not subject to mandatory redemption	34,293	34,293
Commitments and contingencies
Current liabilities
Current portion of operating lease liabilities	66,301	64,730
Short-term borrowings from non-affiliates	0	49,979
Accounts payable	123,199	133,849
Interest and dividends payable	28,172	20,350
Taxes accrued, including revenue taxes	155,125	192,524
Regulatory liabilities	30,370	37,301
Other	70,000	74,262
Total current liabilities	473,167	572,995
Deferred credits and other liabilities
Operating lease liabilities	84,102	69,494
Deferred income taxes	396,758	397,798
Regulatory liabilities	925,769	922,485
Unamortized tax credits	110,181	111,915
Defined benefit pension and other postretirement benefit plans liability	522,286	530,532
Other	115,104	114,641
Total deferred credits and other liabilities	2,154,200	2,146,865
Shareholders’ equity
Preferred stock, no par value, authorized 10,000,000 shares; issued: none	34,293	34,293
Retained earnings	1,297,768	1,282,335
Accumulated other comprehensive loss, net of tax benefits	(2,885)	(2,919)
Total shareholders’ equity	2,157,385	2,141,918
Total liabilities and shareholders’ equity	$ 6,494,908	$ 6,457,373

XML

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets
Property, plant and equipment, accumulated depreciation	$ 2,947,647	$ 2,903,144
Shareholders’ equity
Preferred stock, no par value (in dollars per share)	$ 0	$ 0
Preferred stock, authorized shares (in shares)	10,000,000	10,000,000
Preferred stock, issued shares (in shares)	0	0
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, authorized shares (in shares)	200,000,000	200,000,000
Common stock, issued shares (in shares)	109,281,493	109,181,124
Common stock, outstanding shares (in shares)	109,281,493	109,181,124
Hawaiian Electric Company, Inc. and Subsidiaries
Utility property, plant and equipment
Nonutility property, plant and equipment, accumulated depreciation	$ 116	$ 115
Shareholders’ equity
Common stock, par value (in dollars per share)	$ 6.67	$ 6.67
Common stock, authorized shares (in shares)	50,000,000	50,000,000
Common stock, outstanding shares (in shares)	17,324,376	17,324,376

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Condensed Consolidated Statements of Changes in Shareholders' Equity and Common Stock Equity (unaudited) - USD ($) $ in Thousands	Total	Impact of adoption of ASU No. 2016-13	Balance, January 1, 2020 after adoption of ASU No. 2016-13	Hawaiian Electric Company, Inc. and Subsidiaries	Common stock	Common stock Balance, January 1, 2020 after adoption of ASU No. 2016-13	Common stock Hawaiian Electric Company, Inc. and Subsidiaries	Premium on capital stock Hawaiian Electric Company, Inc. and Subsidiaries	Retained Earnings	Retained Earnings Impact of adoption of ASU No. 2016-13	Retained Earnings Balance, January 1, 2020 after adoption of ASU No. 2016-13	Retained Earnings Hawaiian Electric Company, Inc. and Subsidiaries	Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss) Balance, January 1, 2020 after adoption of ASU No. 2016-13	Accumulated other comprehensive income (loss) Hawaiian Electric Company, Inc. and Subsidiaries
Beginning Balance (in shares) at Dec. 31, 2019					108,973,000	108,973,000	17,048,000
Beginning Balance at Dec. 31, 2019	$ 2,280,260	$ (15,372)	$ 2,264,888	$ 2,047,352	$ 1,678,257	$ 1,678,257	$ 113,678	$ 714,824	$ 622,042	$ (15,372)	$ 606,670	$ 1,220,129	$ (20,039)	$ (20,039)	$ (1,279)
Increase (decrease) in stockholders' equity
Net income for common stock	33,420			23,905					33,420			23,905
Other comprehensive income (loss), net of tax (benefits)	18,212			26									18,212		26
Share-based expenses and other, net (in shares)					172,000
Share-based expenses and other, net	(3,996)				$ (3,996)
Common stock dividends	(36,019)			(26,784)					(36,019)			(26,784)
Ending Balance (in shares) at Mar. 31, 2020					109,145,000		17,048,000
Ending Balance at Mar. 31, 2020	$ 2,276,505			2,044,499	$ 1,674,261		$ 113,678	714,824	604,071			1,217,250	(1,827)		(1,253)
Beginning Balance (in shares) at Dec. 31, 2020	109,181,124				109,181,000		17,324,000
Beginning Balance at Dec. 31, 2020	$ 2,337,502			2,141,918	$ 1,678,368		$ 115,515	746,987	660,398			1,282,335	(1,264)		(2,919)
Increase (decrease) in stockholders' equity
Net income for common stock	64,358			43,358					64,358			43,358
Other comprehensive income (loss), net of tax (benefits)	(44,016)			34									(44,016)		34
Share-based expenses and other, net (in shares)					100,000
Share-based expenses and other, net	605				$ 605
Common stock dividends	$ (37,156)			(27,925)					(37,156)			(27,925)
Ending Balance (in shares) at Mar. 31, 2021	109,281,493				109,281,000		17,324,000
Ending Balance at Mar. 31, 2021	$ 2,321,293			$ 2,157,385	$ 1,678,973		$ 115,515	$ 746,987	$ 687,600			$ 1,297,768	$ (45,280)		$ (2,885)

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Condensed Consolidated Statements of Changes in Shareholders' Equity and Common Stock Equity (unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Stockholders' Equity [Abstract]
Common stock dividends (in dollars per share)	$ 0.34	$ 0.33

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Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities
Net income	$ 64,831	$ 33,893
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment	61,427	59,614
Other amortization	10,951	11,418
Provision for credit losses	(8,435)	10,401
Loans originated, held for sale	(162,901)	(76,770)
Proceeds from sale of loans, held for sale	170,862	72,533
Gain on sale of investment securities, net	(528)	0
Gain on sale of loans	(4,300)	(2,000)
Deferred income taxes	(2,196)	(4,996)
Bad debt expense	457	2,724
Share-based compensation expense	2,602	1,704
Allowance for equity funds used during construction	(2,191)	(2,015)
Other	(3,519)	224
Changes in assets and liabilities
Decrease (increase) in accounts receivable and unbilled revenues, net	5,664	(6,563)
Decrease (increase) in fuel oil stock	(16,400)	2,566
Decrease (increase) in regulatory assets	(14,869)	1,171
Increase (decrease) in regulatory liabilities	(4,716)	16,586
Increase in accounts, interest and dividends payable	7,677	8,935
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes	(25,513)	(45,205)
Decrease in defined benefit pension and other postretirement benefit plans liability	(2,621)	(490)
Change in other assets and liabilities	(34,095)	(19,713)
Net cash provided by operating activities	41,730	61,293
Cash flows from investing activities
Available-for-sale investment securities purchased	(781,992)	(159,173)
Principal repayments on available-for-sale investment securities	184,755	77,642
Proceeds from sale of available-for-sale investment securities	197,354	0
Principal repayments of held-to-maturity investment securities	20,185	4,851
Purchases of held-to-maturity investment securities	(88,262)	0
Purchase of stock from Federal Home Loan Bank	(22,296)	(20,766)
Redemption of stock from Federal Home Loan Bank	20,976	19,440
Net increase in loans held for investment	23,922	(65,544)
Proceeds from sale of low-income housing investments	0	6,725
Capital expenditures	(74,079)	(125,554)
Contributions to low income housing investments	(3,205)	(1,026)
Other	4,622	2,942
Net cash used in investing activities	(518,020)	(260,463)
Cash flows from financing activities
Net increase in deposit liabilities	358,337	111,881
Net increase (decrease) in short-term borrowings with original maturities of three months or less	35,751	(135,710)
Net increase in other bank borrowings with original maturities of three months or less	13,015	42,495
Proceeds from issuance of short-term debt	0	50,000
Repayment of short-term debt	(65,000)	0
Proceeds from issuance of long-term debt	161,800	186,925
Repayment of long-term debt	(50,699)	(909)
Withheld shares for employee taxes on vested share-based compensation	(1,997)	(5,700)
Common stock dividends	(37,156)	(36,018)
Preferred stock dividends of subsidiaries	(473)	(473)
Other	(4,621)	(4,590)
Net cash provided by financing activities	408,957	207,901
Net increase (decrease) in cash, cash equivalents and restricted cash	(67,333)	8,731
Cash, cash equivalents and restricted cash, beginning of period	358,979	227,685
Cash, cash equivalents and restricted cash, end of period	291,646	236,416
Less: Restricted cash	(14,067)	(30,902)
Cash and cash equivalents, end of period	277,579	205,514
Hawaiian Electric Company, Inc. and Subsidiaries
Cash flows from operating activities
Net income	43,857	24,404
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment	57,355	55,850
Other amortization	6,577	7,704
Deferred income taxes	(4,671)	(3,762)
State refundable credit	(2,662)	(2,530)
Allowance for equity funds used during construction	(2,191)	(2,015)
Other	(1)	20
Changes in assets and liabilities
Decrease (increase) in accounts receivable	6,078	(9,020)
Decrease (increase) in accrued unbilled revenues	(427)	2,704
Decrease (increase) in fuel oil stock	(16,450)	2,410
Increase in materials and supplies	(2,382)	(496)
Decrease (increase) in regulatory assets	(14,869)	1,171
Increase (decrease) in regulatory liabilities	(4,716)	16,586
Increase (decrease) in accounts payable	6,254	(7,153)
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes	(24,802)	(43,919)
Decrease in defined benefit pension and other postretirement benefit plans liability	(1,434)	(1,017)
Change in other assets and liabilities	(14,012)	(4,520)
Net cash provided by operating activities	31,961	39,141
Cash flows from investing activities
Capital expenditures	(70,361)	(119,144)
Other	1,863	2,713
Net cash used in investing activities	(68,498)	(116,431)
Cash flows from financing activities
Net increase in other bank borrowings with original maturities of three months or less	0	(38,987)
Proceeds from issuance of short-term debt	0	50,000
Repayment of short-term debt	(50,000)	0
Proceeds from issuance of long-term debt	115,000	95,000
Common stock dividends	(27,925)	(26,784)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(499)	(499)
Other	(116)	(23)
Net cash provided by financing activities	36,460	78,707
Net increase (decrease) in cash, cash equivalents and restricted cash	(77)	1,417
Cash, cash equivalents and restricted cash, beginning of period	63,326	41,894
Cash, cash equivalents and restricted cash, end of period	63,249	43,311
Less: Restricted cash	(11,506)	(30,902)
Cash and cash equivalents, end of period	$ 51,743	$ 12,409

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Basis of presentation	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation	Basis of presentationThe accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information, the instructions to SEC Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the unaudited condensed consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. The accompanying unaudited condensed consolidated financial statements and the following notes should be read in conjunction with the audited consolidated financial statements and the notes thereto in HEI’s and Hawaiian Electric’s Form 10-K for the year ended December 31, 2020.In the opinion of HEI’s and Hawaiian Electric’s management, the accompanying unaudited condensed consolidated financial statements contain all material adjustments required by GAAP to fairly state consolidated HEI’s and Hawaiian Electric’s financial positions as of March 31, 2021 and December 31, 2020 and the results of their operations and cash flows for the three months ended March 31, 2021 and 2020. All such adjustments are of a normal recurring nature, unless otherwise disclosed below or in other referenced material. Results of operations for interim periods are not necessarily indicative of results for the full year.Recent accounting pronouncements.Income Taxes. In December 2019, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which removes specific exceptions to the general principles in Topic 740, improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP under certain situations. ASU 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company adopted the ASU as of January 1, 2021 with no material impact on its consolidated financial statements and related disclosures.

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Segment financial information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment financial information

Segment financial information

(in thousands)	Electric utility		Bank		Other		Total
Three months ended March 31, 2021
Revenues from external customers	$	564,855	$	77,131	$	960	$	642,946
Intersegment revenues (eliminations)	9		—		(9)		—
Revenues	$	564,864	$	77,131	$	951	$	642,946
Income (loss) before income taxes	$	55,090	$	37,102	$	(11,996)	$	80,196
Income taxes (benefit)	11,233		7,546		(3,414)		15,365
Net income (loss)	43,857		29,556		(8,582)		64,831
Preferred stock dividends of subsidiaries	499		—		(26)		473
Net income (loss) for common stock	$	43,358	$	29,556	$	(8,556)	$	64,358
Total assets (at March 31, 2021)	$	6,494,908	$	8,718,024	$	145,741	$	15,358,673
Three months ended March 31, 2020
Revenues from external customers	$	597,430	$	79,738	$	18	$	677,186
Intersegment revenues (eliminations)	12		—		(12)		—
Revenues	$	597,442	$	79,738	$	6	$	677,186
Income (loss) before income taxes	$	29,686	$	18,969	$	(8,959)	$	39,696
Income taxes (benefit)	5,282		3,208		(2,687)		5,803
Net income (loss)	24,404		15,761		(6,272)		33,893
Preferred stock dividends of subsidiaries	499		—		(26)		473
Net income (loss) for common stock	$	23,905	$	15,761	$	(6,246)	$	33,420
Total assets (at December 31, 2020)	$	6,457,373	$	8,396,533	$	150,101	$	15,004,007

Intercompany electricity sales of the Utilities to ASB and “other” segments are not eliminated because those segments would need to purchase electricity from another source if it were not provided by the Utilities and the profit on such sales is nominal.

Hamakua Energy, LLC’s (Hamakua Energy’s) sales to Hawaii Electric Light (a regulated affiliate) are eliminated in consolidation.

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Electric utility segment

3 Months Ended

Mar. 31, 2021

Electric utility subsidiary [Abstract]

Electric utility segment

Electric utility segment

Unconsolidated variable interest entities.

Power purchase agreements.  As of March 31, 2021, the Utilities had five PPAs for firm capacity (including the Puna Geothermal Venture (PGV) PPA as PGV went offline in May 2018 due to lava flow on Hawaii Island, but returned to service with firm capacity of 13 MW in the first quarter of 2021) and other PPAs with independent power producers (IPPs) and Schedule Q providers (i.e., customers with cogeneration and/or power production facilities who buy power from or sell power to the Utilities), none of which are currently required to be consolidated as VIEs.

Pursuant to the current accounting standards for VIEs, the Utilities are deemed to have a variable interest in Kalaeloa Partners, L.P. (Kalaeloa), AES Hawaii, Inc. (AES Hawaii) and Hamakua Energy by reason of the provisions of the PPA that the Utilities have with the three IPPs. However, management has concluded that the Utilities are not the primary beneficiary of Kalaeloa, AES Hawaii and Hamakua Energy because the Utilities do not have the power to direct the activities that most significantly impact the three IPPs’ economic performance nor the obligation to absorb their expected losses, if any, that could potentially be significant to the IPPs. Thus, the Utilities have not consolidated Kalaeloa, AES Hawaii and Hamakua Energy in its condensed consolidated financial statements. Hamakua Energy is an indirect subsidiary of Pacific Current and is consolidated in HEI’s condensed consolidated financial statements.

For the other PPAs with IPPs, the Utilities have concluded that the consolidation of the IPPs was not required because either the Utilities do not have variable interests in the IPPs due to the absence of an obligation in the PPAs for the Utilities to absorb any variability of the IPPs, or the IPP was considered a “governmental organization,” and thus excluded from the scope of accounting standards for VIEs. The consolidation of any significant IPP could have a material effect on the unaudited condensed consolidated financial statements, including the recognition of a significant amount of assets and liabilities and, if such a consolidated IPP were operating at a loss and had insufficient equity, the potential recognition of such losses. If the Utilities determine they are required to consolidate the financial statements of such an IPP and the consolidation has a material effect, the Utilities would retrospectively apply accounting standards for VIEs to the IPP.

Commitments and contingencies.

Contingencies. The Utilities are subject in the normal course of business to pending and threatened legal proceedings. Management does not anticipate that the aggregate ultimate liability arising out of these pending or threatened legal proceedings will be material to its financial position. However, the Utilities cannot rule out the possibility that such outcomes could have a material effect on the results of operations or liquidity for a particular reporting period in the future.

Power purchase agreements.  Purchases from all IPPs were as follows:

	Three months ended March 31
(in millions)	2021		2020
Kalaeloa	$	37	$	38
AES Hawaii	30		31
HPOWER	17		17
Hamakua Energy	11		13
Puna Geothermal Venture	4		—
Wind IPPs	29		28
Solar IPPs	12		11
Other IPPs 1	2		2
Total IPPs	$	142	$	140

1Includes hydro power and other PPAs

Kalaeloa Partners, L.P.  Under a 1988 PPA, as amended, Hawaiian Electric is committed to purchase 208 MW of firm capacity from Kalaeloa. Hawaiian Electric and Kalaeloa continue negotiations to address the PPA term that ended on May 23, 2016. The PPA automatically extends on a month-to-month basis as long as the parties are still negotiating in good faith. Hawaiian Electric and Kalaeloa have agreed that neither party will terminate the PPA (which has been subject to automatic extension on a month-to-month basis) prior to May 31, 2021, to allow for a negotiated resolution.

AES Hawaii, Inc. Under a PPA entered into in March 1988, as amended (through Amendment No. 2) for a period of 30 years ending September 2022, Hawaiian Electric agreed to purchase 180 MW of firm capacity from AES Hawaii. Hawaiian

Electric and AES Hawaii have been in dispute over an additional 9 MW of capacity. In February 2018, Hawaiian Electric reached agreement with AES Hawaii on an amendment to the PPA. However, in June 2018, the PUC issued an order suspending review of the amendment pending a Department of Health of the State of Hawaii (DOH) decision on AES Hawaii’s request for approval of its Emission Reduction Plan and partnership with Hawaiian Electric. If approved by the PUC, the amendment will resolve AES Hawaii’s claims related to the additional capacity.

Hu Honua Bioenergy, LLC (Hu Honua). In May 2012, Hawaii Electric Light signed a PPA, which the PUC approved in December 2013, with Hu Honua for 21.5 MW of renewable, dispatchable firm capacity fueled by locally grown biomass from a facility on the island of Hawaii. Under the terms of the PPA, the Hu Honua plant was scheduled to be in service in 2016. However, Hu Honua encountered construction and litigation delays, which resulted in an amended and restated PPA between Hawaii Electric Light and Hu Honua dated May 9, 2017. In July 2017, the PUC approved the amended and restated PPA, which becomes effective once the PUC’s order is final and non-appealable. In August 2017, the PUC’s approval was appealed by a third party. On May 10, 2019, the Hawaii Supreme Court issued a decision remanding the matter to the PUC for further proceedings consistent with the court’s decision which must include express consideration of greenhouse gas (GHG) emissions that would result from approving the PPA, whether the cost of energy under the PPA is reasonable in light of the potential for GHG emissions, and whether the terms of the PPA are prudent and in the public interest, in light of its potential hidden and long-term consequences. On June 20, 2019, the PUC issued an order reopening the docket for further proceedings, including re-examining all of the issues in the proceedings. On September 29, 2019, the PUC issued an order setting the procedural schedule for the matter and on December 20, 2019, issued an order modifying the procedural schedule. Pre-hearing matters were completed on March 6, 2020. On July 9, 2020, the PUC issued an order denying Hawaii Electric Light’s request to waive the amended and restated PPA from the PUC’s competitive bidding requirements and therefore, dismissed the request for approval of the amended and restated PPA without prejudice to possible participation in any future competitive bidding process. On July 20, 2020, Hu Honua filed a motion for reconsideration of the PUC’s order which was denied by the PUC on September 9, 2020. On September 16, 2020, Hu Honua filed its notice of appeal to the Hawaii Supreme Court of the PUC’s order denying Hu Honua’s motion for reconsideration. Oral arguments were held before the Supreme Court on April 22, 2021.

Molokai New Energy Partners (MNEP). In July 2018, the PUC approved Maui Electric’s PPA with MNEP to purchase solar energy from a photovoltaic (PV) plus battery storage project. The 4.88 MW PV and 3 MW Battery Energy Storage System project was to deliver no more than 2.64 MW at any time to the Molokai system. On March 25, 2020, MNEP filed a complaint in the United Stated District Court for the District of Hawaii against Maui Electric claiming breach of contract. On June 3, 2020, Maui Electric provided Notice of Default and Termination of the PPA to MNEP terminating the PPA with an effective date of July 10, 2020. Thereafter, MNEP filed an amended Complaint to include claims relating to the termination and Hawaiian Electric filed its Answer to the Amended Complaint on September 11, 2020, disputing the facts presented by MNEP and all claims within the original and amended complaint.

Utility projects.  Many public utility projects require PUC approval and various permits from other governmental agencies. Difficulties in obtaining, or the inability to obtain, the necessary approvals or permits or community support can result in significantly increased project costs or even cancellation of projects. In the event a project does not proceed, or if it becomes probable the PUC will disallow cost recovery for all or part of a project, or if PUC-imposed caps on project costs are expected to be exceeded, project costs may need to be written off in amounts that could result in significant reductions in Hawaiian Electric’s consolidated net income.

Enterprise Resource Planning/Enterprise Asset Management (ERP/EAM) implementation project. The ERP/EAM Implementation Project went live in October 2018. Hawaii Electric Light and Hawaiian Electric began to incorporate their portion of the deferred project costs in rate base and started the amortization over a 12-year period in January 2020 and November 2020, respectively. The PUC required the benefit savings of the project to be passed on to customers.

In February 2019, the PUC approved a methodology for passing the future cost saving benefits of the new ERP/EAM system to customers developed by the Utilities in collaboration with the Consumer Advocate. The Utilities filed a benefits clarification document on June 10, 2019, reflecting $150 million in future net O&M expense reductions and cost avoidance, and $96 million in capital cost reductions and tax savings over the 12-year service life. To the extent the reduction in O&M expense relates to amounts reflected in electric rates, the Utilities would reduce future rates for such amounts. In October 2019, the PUC approved the Utilities and the Consumer Advocate’s Stipulated Performance Metrics and Tracking Mechanism. As of March 31, 2021, the Utilities’ regulatory liability was $11.2 million ($6.5 million for Hawaiian Electric, $1.9 million for Hawaii Electric Light and $2.8 million for Maui Electric) for the O&M expense savings that are being amortized or to be included in future rates. As part of the settlement agreement approved in the Hawaiian Electric 2020 test year rate case, the regulatory liability for Hawaiian Electric will be amortized over five years, beginning in November 2020, and the O&M benefits for Hawaiian Electric will be considered flowed through to customers. As part of the PBR proceeding, the regulatory liability as of

December 31, 2020 of approximately $1.6 million and $2.3 million, respectively, for Hawaii Electric Light and Maui Electric will be flowed to customers as part of the customer dividend in the annual revenue adjustment in 2021.

At the PUC’s direction, the Utilities have been filing Semi-Annual Enterprise System Benefits (SAESB) reports on the achieved benefits savings. The most recent SAESB report was filed on February 26, 2021 for the period July 1 through December 31, 2020.

Environmental regulation.  The Utilities are subject to environmental laws and regulations that regulate the operation of existing facilities, the construction and operation of new facilities and the proper cleanup and disposal of hazardous waste and toxic substances.

Hawaiian Electric, Hawaii Electric Light and Maui Electric, like other utilities, periodically encounter petroleum or other chemical releases associated with current or previous operations. The Utilities report and take action on these releases when and as required by applicable law and regulations. The Utilities believe the costs of responding to such releases identified to date will not have a material effect, individually or in the aggregate, on Hawaiian Electric’s consolidated results of operations, financial condition or liquidity.

Former Molokai Electric Company generation site.  In 1989, Maui Electric acquired Molokai Electric Company. Molokai Electric Company had sold its former generation site (Site) in 1983, but continued to operate at the Site under a lease until 1985. The federal Environmental Protection Agency (EPA) has since identified environmental impacts in the subsurface soil at the Site. In cooperation with the DOH and EPA, Maui Electric further investigated the Site and the Adjacent Parcel to determine the extent of impacts of polychlorinated biphenyls (PCBs), residual fuel oils and other subsurface contaminants. Maui Electric has a reserve balance of $2.7 million as of March 31, 2021, representing the probable and reasonably estimable undiscounted cost for remediation of the Site and the Adjacent Parcel; however, final costs of remediation will depend on the cleanup approach implemented.

Pearl Harbor sediment study. In July 2014, the U.S. Navy notified Hawaiian Electric of the Navy’s determination that Hawaiian Electric is a Potentially Responsible Party responsible for the costs of investigation and cleanup of PCBs contamination in sediment in the area offshore of the Waiau Power Plant as part of the Pearl Harbor Superfund Site. Hawaiian Electric was also required by the EPA to assess potential sources and extent of PCB contamination onshore at Waiau Power Plant.

As of March 31, 2021, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $9.8 million. The reserve balance represents the probable and reasonably estimable undiscounted cost for the onshore and offshore investigation and remediation. The final remediation costs will depend on the actual onshore and offshore cleanup costs.

Regulatory proceedings

Current decoupling. Decoupling is a regulatory model that is intended to provide the Utilities with financial stability and facilitate meeting the State of Hawaii’s goals to transition to a clean energy economy and achieve an aggressive renewable portfolio standard. The current decoupling mechanism has the following major components: (1) monthly revenue balancing account (RBA) revenues or refunds for the difference between PUC-approved target revenues and recorded adjusted revenues, which delinks revenues from kWh sales, (2) rate adjustment mechanism (RAM) revenues for escalation in certain O&M expenses and rate base changes, (3) major project interim recovery (MPIR) component, (4) performance incentive mechanisms (PIMs), and (5) an earnings sharing mechanism, which would provide for a reduction of revenues between rate cases in the event the utility exceeds the return on average common equity (ROACE) allowed in its most recent rate case.

Performance-based regulation framework. On December 23, 2020, the PUC issued a D&O (PBR D&O) approving a new performance-based regulation framework (PBR Framework). Under the PBR Framework, the Utilities’ current decoupling will continue to be used with modifications, as described below. The existing cost recovery mechanisms will continue as currently implemented (e.g., the Energy Cost Recovery Clause (ECRC), Purchased Power Adjustment Clause (PPAC), Demand Side Management surcharge (DSM), Renewable Energy Infrastructure Program (REIP), Demand Response Adjustment Clause (DRAC), Pension and Other Post-Employment Benefits (OPEB) tracking mechanisms). In addition to annual revenues provided by the annual revenue adjustment (ARA), the Utilities may seek relief for extraordinary projects or programs through the Exceptional Project Recovery Mechanism (EPRM) (formerly known as the Major Project Interim Recovery (MPIR) adjustment mechanism) and earn financial rewards for exemplary performance as provided through a portfolio of Performance Incentive Mechanisms (PIMs) and Shared Savings Mechanisms (SSMs). The PBR Framework will incorporate a variety of other performance mechanisms, including Scorecards, Reported Metrics, and an expedited Pilot Process. The PBR Framework also contains a number of safeguards, including a symmetric Earnings Sharing Mechanism (ESM) which protects the Utilities and customers from excessive earnings or losses, as measured by the Utilities’ Return on Equity (ROE) and a Re-Opener

mechanism, under which the PUC will open an examination, at its discretion, to determine if adjustments or modifications to specific PBR mechanisms are appropriate.

Subsequent to the issuance of the PBR D&O, the PUC has initiated a collaborative process during which working groups consisting of the PUC, the Utilities and other parties have addressed the development of the proposed PBR implementation tariffs and the final details of the Prioritized Performance Mechanisms (i.e., Interconnection Approval PIM, Low-to-Moderate Income (LMI) Energy Efficiency PIM, Advanced Metering Infrastructure (AMI) Utilization PIM and the portfolio of Scorecards and Reported Metrics). The Utilities and other parties filed their refined proposals addressing the Prioritized Performance Mechanisms on March 16, 2021 and April 9, 2021. An order addressing the Prioritized Performance Mechanisms is expected to be issued in May 2021. Written tariffs to implement the PBR Framework have been either approved (see below) or will be submitted for PUC approval in May 2021 and expected to go into effect June 1, 2021.

Rate adjustment mechanism. The existing RAM is based on the lesser of: a) an inflationary adjustment for certain O&M expenses and return on investment for certain rate base changes, or b) cumulative annual compounded increase in Gross Domestic Product Price Index applied to annualized target revenues (the RAM Cap). Annualized target revenues may be reset upon the issuance of an interim or final decision and order (D&O) in a rate case. All Utilities were limited to the RAM Cap in 2020. Under the new PBR Framework, the ARA mechanism will replace the RAM, effective on June 1, 2021. The transition to the new ARA includes the continuation of the 2020 RAM Revenue adjustment.

Annual revenue adjustment mechanism. The PBR Framework established a five-year multi-year rate period during which there will be no general rate cases. Target revenues will be adjusted according to an index-driven ARA based on (i) an inflation factor, (ii) a predetermined X-factor to encompass productivity, which is set at zero, (iii) a Z-factor to account for exceptional circumstances not in the Utilities’ control and (iv) a customer dividend consisting of a negative adjustment of 0.22% compounded annually and a flow through of the “pre-PBR” savings commitment from the management audit recommendations developed in a prior docket.

As a result of an Order issued by the PUC pursuant to a motion for partial reconsideration the customer dividend for “pre-PBR” savings commitment portion to be delivered to customers will be at a rate of $6.6 million per year from 2021 to 2025, and the Enterprise Resource Planning system benefits savings of $3.9 million, to be delivered to customers in 2021. The implementation of the ARA is scheduled to occur on June 1, 2021.

Earnings sharing mechanism. A symmetrical ESM for actual return on equity outside of a 300 basis points dead band above and below a target ROE of 9.5%, which is the current authorized ROE for the Utilities. There is a 50/50 sharing between customers and Utilities for the actual earnings falling within 150 basis points outside of the dead band in either direction, and a 90/10 sharing for any further difference. A reopening or review of the PBR terms will be triggered if the Utilities credit rating outlook indicates a potential credit downgrade below investment grade status, or if its earned ROE enters the outer most tier of the ESM.

Major project interim recovery. On April 27, 2017, the PUC issued an order that provided guidelines for interim recovery of revenues to support major projects placed in service between general rate cases.

Projects eligible for recovery through the MPIR adjustment mechanism are major projects (i.e., projects with capital expenditures net of customer contributions in excess of $2.5 million), including, but not restricted to, renewable energy, energy efficiency, utility scale generation, grid modernization and smaller qualifying projects grouped into programs for review. The MPIR adjustment mechanism provides the opportunity to recover revenues for approved costs of eligible projects placed in service between general rate cases wherein cost recovery is limited by a revenue cap and is not provided by other effective recovery mechanisms. The request for PUC approval must include a business case, and all costs that are allowed to be recovered through the MPIR adjustment mechanism must be offset by any related benefits. The guidelines provide for accrual of revenues approved for recovery upon in-service date to be collected from customers through the annual RBA tariff. Capital projects that are not recovered through the MPIR would be included in the RAM and be subject to the RAM Cap, until the next rate case when the Utilities would request recovery in base rates.

On March 31, 2021, the Utilities submitted 2021 MPIR amounts totaling $21.8 million for the Schofield Generating Station ($17.6 million), West Loch PV Project ($3.3 million), and Grid Modernization Strategy Phase 1 project ($0.9 million for all three utilities) for the accrual of revenues effective January 1, 2021, that included the 2021 return on project amount (based on approved amounts) in rate base, depreciation and incremental O&M expenses. Subject to PUC approval, as part of the transition to the PBR framework, the Utilities will begin recovery of the annualized 2021 MPIR amounts effective June 1, 2021 through the RBA rate adjustment.

Exceptional project recovery mechanism. The existing MPIR adjustment mechanism was renamed EPRM to include deferred and O&M expense projects and to permit the Utilities to include the full amount of approved costs in the EPRM for recovery in the first year the project goes into service, pro-rated for the portion of the year the project is in service. Any pending application for MPIR relief submitted by the Utilities prior to the PBR D&O, will be grandfathered under the MPIR Guidelines. The Utilities may alternatively request that pending MPIR applications be reviewed under EPRM Guidelines. EPRM recovery will be in accordance with the EPRM Guidelines limited to the lesser of actual incurred project costs or PUC- approved amounts, net of savings. To date, the Utilities have requested approval of four projects with total estimated capital costs of $95 million for recovery through EPRM.

Performance incentive mechanisms. The PUC has established the following PIMs: (1) Service Quality performance incentives, (2) Phase 1 Request for proposal (RFP) PIM for procurement of low-cost renewable energy, (3) Phase 2 RFP PIMs for generation and generation plus storage project, and Grid Services and standalone storage.

•Service Quality performance incentives (ongoing). Service Quality performance incentives are measured on a calendar-year basis. The PIM tariff requires the performance targets, deadbands and the amount of maximum financial incentives used to determine the PIM financial incentive levels for each of the PIMs to be re-determined upon issuance of an interim or final order in a general rate case for each utility.

•Service Reliability Performance measured by System Average Interruption Duration and Frequency Indexes (penalties only). Target performance is based on each utility’s historical 10-year average performance with a deadband of one standard deviation. The maximum penalty for each performance index is 20 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties of approximately $6.8 million - for both indices in total for the three utilities).

•Call Center Performance measured by the percentage of calls answered within 30 seconds. Target performance is based on the annual average performance for each utility for the most recent 8 quarters with a deadband of 3% above and below the target. The maximum penalty or reward is 8 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties or rewards of approximately $1.4 million - in total for the three utilities).

In December 2020, the Utilities accrued $0.9 million in estimated rewards for call center performance, net of service reliability penalties, for 2020. The net service quality performance rewards related to 2020 was reflected in the 2021 annual decoupling filing and pending PUC’s approval, will increase customer rates effective June 1, 2021.

•Phase 1 RFP PIM. Procurement of low-cost variable renewable resources through the request for proposal process in 2018 is measured by comparison of the procurement price to target prices. Half of the incentive was earned upon PUC approval of the PPAs. Based on the seven PPAs approved in 2019, the Utilities recognized $1.7 million in 2019 with the remaining award to be recognized in the year following the in-service date of the projects, which is estimated to occur from 2023 to 2024.

•Phase 2 RFP PIMs. The PUC order issued on October 9, 2019 establishes pricing thresholds, timelines to complete contracting, and other performance criteria for the performance incentive eligibility. The PIMs provide incentives only without penalties. The order requires contracts under the Grid Service RFP be filed for approval by May 2020 (subsequently extended to July 9, 2020), and by September 2020 under the Renewable RFPs, with a declining PIM for projects that are not filed by these deadlines. On July 9, 2020, the Utilities filed two Grid Service Purchase Agreements for the Grid Service RFP, which qualify for PIMs, however, details of the incentive metrics will be determined by PUC. On September 15, 2020, the Utilities filed eight power purchase agreements for the Phase 2 RFP. Of those eight, only one project qualified for a potential PIM incentive. On February 16, 2021, the Utilities filed one additional power purchase agreement that qualifies for the declining PIM. On December 31, 2020, the PUC approved the two Grid Services Purchase Agreements without further clarification regarding the PIM. The Utility has filed a letter to the PUC in January 2021 to seek guidance to the next step of defining the details of the incentive metrics.

•The PUC established the following two new PIMs in its PBR D&O, which were approved in an order issued on March 23, 2021. The effective date for these PIM tariffs is June 1, 2021.

•Renewable portfolio standard (RPS)-A PIM that provides a financial reward for accelerating the achievement of RPS goals. The Utilities may earn a reward for the amount of system generation above the interpolated statutory RPS goal at $20/MWh in 2021 and 2022, $15/MWh in 2023, and $10/MWh for the remainder of the multi-year rate period (MRP). Penalties are already prescribed in the RPS as $20/MWh for failing to meet RPS targets in 2030, 2040 and 2045. The evaluation period commenced on January 1, 2021.

•Grid Services Procurement PIM that provides financial rewards for grid services acquired in 2021 and 2022. The Utilities can earn a total maximum reward of $1.5 million over 2021 and 2022. The evaluation period commenced on January 1, 2021.

•The PUC also established the following three new PIMs in its PBR D&O, which are subject to PUC final design approval anticipated by June 1, 2021.

•Interconnection Approval PIM that provides financial rewards and penalties for interconnection times for distributed energy resources systems <100 kW in size. The Utilities can earn a total annual maximum reward of $3.0 million or a total annual maximum penalty of $0.9 million. The evaluation period commenced on January 1, 2021.

•Low-to-Moderate Income (LMI) Energy Efficiency PIM that provides financial rewards for collaboration between the Utilities and the third-party Public Benefits Fee Administrator to deliver energy savings for low- and moderate-income customers. The rewards for the PIM metrics will be collectively capped at $2.0 million. The PIM will initially have a duration of three years and be subject to an annual review. The evaluation period will commence as of the date of the effective tariff.

•Advanced Metering Infrastructure (AMI) Utilization PIM that provides financial rewards for acceleration of the number of customers with advanced meters enabled to support time-varying rates and next generation distributed energy resources programs. The Utilities can earn a total annual maximum reward of $2.0 million. The evaluation period will commence as of the date of the effective tariff.

Annual decoupling filings. The Utilities filed annual decoupling filings on March 31, 2021, which are subject to PUC approval. The net annual incremental amounts proposed to be collected (refunded) from June 1, 2021 through December 31, 2021 are as follows:

(in millions)	Hawaiian Electric		Hawaii Electric Light		Maui Electric		Total
2021 Annual incremental RAM adjusted revenues and ARA revenues	$	(13.8)	$	(2.0)	$	(5.9)	$	(21.7)
Annual change in accrued RBA balance as of December 31, 2020 (and associated revenue taxes)	10.4		5.7		8.9		25.0
Incremental Performance Incentive Mechanisms (net)	—		0.2		0.5		0.7
Incremental MPIR/EPRM Revenue Adjustment	12.6		0.1		0.1		12.8
Incremental Affiliate Transaction Refund/PUC Ordered Adjustment	—		N/A		2.0		2.0
Net annual incremental amount to be collected under the tariffs	$	9.1	$	4.0	$	5.6	$	18.7

Note: Columns may not foot due to rounding.

Most recent rate proceedings.

Hawaiian Electric 2020 test year rate case. On October 22, 2020, the PUC issued a final D&O approving the stipulated settlement agreement filed in the proceeding. As a result, there will be no increase in base electric rates established in the 2017 test year rate case. In the final D&O, the PUC approved the capital structure that consists of a 58% total equity ratio, and a ROACE of 9.5% for the 2020 test year. The resulting return on rate base (RORB) is 7.37%. The D&O approved the agreement to implement the overall lower depreciation rates approved in the last depreciation study proceeding, effective January 1, 2020. See “Annual revenue adjustment mechanism” under “Performance-based regulation framework” above, regarding the PUC’s decision on the treatment of Hawaiian Electric’s Management Audit savings commitment. Hawaiian Electric’s proposed RBA provision tariff and ECRC tariff submitted on November 6, 2020 were approved by the PUC on December 11, 2020 and took effect on January 1, 2021.

Hawaii Electric Light 2019 test year rate case. On July 28, 2020, the PUC issued a final D&O, approving the Stipulated Partial Settlement Letter in part and ordering final rates for the 2019 test year to remain at current effective rates such that there is a zero increase in rates. The PUC determined that an appropriate ROACE for the 2019 test year is 9.5%, approved a capital structure of 58% total equity and approved as fair a 7.52% RORB. In addition, the order, among others, (1) approved a 10-year amortization period for the state investment tax credit; and (2) approved a modification to Hawaii Electric Light’s ECRC to incorporate a 98%/2% risk-sharing split between customers and Hawaii Electric Light with an annual maximum exposure cap of +/- $600,000. The proposed final tariffs and PIM tariffs took effect on November 1, 2020, and the ECRC tariff took effect on January 1, 2021.

Regulatory assets for COVID-19 related costs. On May 4, 2020, the PUC issued an order, authorizing all utilities, including the Utilities, to establish regulatory assets to record costs resulting from the suspension of disconnections of service during the

pendency of the Governor’s Emergency Proclamation and until otherwise ordered by the PUC. In future proceedings, the PUC will consider the reasonableness of the costs, the appropriate period of recovery, any amount of carrying costs thereon, and any savings directly attributable to suspension of disconnects, and other related matters. As part of the order, the PUC prohibits the Utilities from charging late payment fees on past due payments. On June 30, 2020, the PUC issued an order approving the Utilities’ request made in April 2020 for deferral treatment of COVID-19 related costs through December 31, 2020. On March 8, 2021, the PUC approved the Utilities’ request to extend the deferral period to June 30, 2021. The Utilities are required to file quarterly reports to update the Utilities’ financial condition, report measures in place to assist their customers during the COVID-19 emergency situation, identify the planned deferred costs and details for the deferred costs, and identify funds received or benefits received that have resulted from the COVID-19 emergency period. The recovery of the regulatory assets would be determined in a subsequent proceeding and management believes the deferred costs are probable of recovery. In addition, starting in December 2020 and monthly moving forward until otherwise ordered by the PUC, the Utilities are required to file information on, among other things, number of customers, arrears balances, payment arrangements entered into, and available assistance used to assists customer bill payment. The monthly report is intended to assist the PUC in determining next steps regarding appropriate regulatory measures. As of March 31, 2021, the Utilities recorded a total of $22.2 million in regulatory assets pursuant to the orders.

Condensed consolidating financial information. Condensed consolidating financial information for Hawaiian Electric and its subsidiaries are presented for the three month periods ended March 31, 2021 and 2020, and as of March 31, 2021 and December 31, 2020.

Hawaiian Electric unconditionally guarantees Hawaii Electric Light’s and Maui Electric’s obligations (a) to the State of Hawaii for the repayment of principal and interest on Special Purpose Revenue Bonds issued for the benefit of Hawaii Electric Light and Maui Electric, and (b) under their respective private placement note agreements and the Hawaii Electric Light notes and Maui Electric notes issued thereunder. Hawaiian Electric is also obligated, after the satisfaction of its obligations on its own preferred stock, to make dividend, redemption and liquidation payments on Hawaii Electric Light’s and Maui Electric’s preferred stock if the respective subsidiary is unable to make such payments.

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Income

Three months ended March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	400,554	85,149	79,181	—	(20)	$	564,864
Expenses
Fuel oil	88,728		16,485	22,214	—	—	127,427
Purchased power	108,604		21,597	12,095	—	—	142,296
Other operation and maintenance	77,335		17,912	19,323	—	—	114,570
Depreciation	38,914		10,048	8,393	—	—	57,355
Taxes, other than income taxes	38,627		7,993	7,482	—	—	54,102
Total expenses	352,208		74,035	69,507	—	—	495,750
Operating income	48,346		11,114	9,674	—	(20)	69,114
Allowance for equity funds used during construction	1,748		132	311	—	—	2,191
Equity in earnings of subsidiaries	12,510		—	—	—	(12,510)	—
Retirement defined benefits expense—other than service costs	886		168	(33)	—	—	1,021
Interest expense and other charges, net	(12,832)		(2,581)	(2,590)	—	20	(17,983)
Allowance for borrowed funds used during construction	591		44	112	—	—	747
Income before income taxes	51,249		8,877	7,474	—	(12,510)	55,090
Income taxes	7,621		2,051	1,561	—	—	11,233
Net income	43,628		6,826	5,913	—	(12,510)	43,857
Preferred stock dividends of subsidiaries	—		134	95	—	—	229
Net income attributable to Hawaiian Electric	43,628		6,692	5,818	—	(12,510)	43,628
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	43,358	6,692	5,818	—	(12,510)	$	43,358

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Comprehensive Income

Three months ended March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net income for common stock	$	43,358	6,692	5,818	—	(12,510)	$	43,358
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes	5,845		835	761	—	(1,596)	5,845
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(5,811)		(834)	(761)	—	1,595	(5,811)
Other comprehensive income, net of taxes	34		1	—	—	(1)	34
Comprehensive income attributable to common shareholder	$	43,392	6,693	5,818	—	(12,511)	$	43,392

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Income

Three months ended March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	421,166	89,293	87,198	—	(215)	$	597,442
Expenses
Fuel oil	120,535		22,432	30,254	—	—	173,221
Purchased power	107,951		19,521	12,344	—	—	139,816
Other operation and maintenance	85,637		19,104	22,806	—	—	127,547
Depreciation	38,011		9,760	8,079	—	—	55,850
Taxes, other than income taxes	40,501		8,342	8,207	—	—	57,050
Total expenses	392,635		79,159	81,690	—	—	553,484
Operating income	28,531		10,134	5,508	—	(215)	43,958
Allowance for equity funds used during construction	1,743		119	153	—	—	2,015
Equity in earnings of subsidiaries	8,804		—	—	—	(8,804)	—
Retirement defined benefits expense—other than service costs	(546)		194	(29)	—	—	(381)
Interest expense and other charges, net	(12,002)		(2,484)	(2,323)	—	215	(16,594)
Allowance for borrowed funds used during construction	602		36	50	—	—	688
Income before income taxes	27,132		7,999	3,359	—	(8,804)	29,686
Income taxes	2,957		1,798	527			5,282
Net income	24,175		6,201	2,832	—	(8,804)	24,404
Preferred stock dividends of subsidiaries	—		134	95	—		229
Net income attributable to Hawaiian Electric	24,175		6,067	2,737	—	(8,804)	24,175
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	23,905	6,067	2,737	—	(8,804)	$	23,905

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Comprehensive Income

Three months ended March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net income for common stock	$	23,905	6,067	2,737	—	(8,804)	$	23,905
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	5,184		748	652	—	(1,400)	5,184
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(5,158)		(747)	(652)	—	1,399	(5,158)
Other comprehensive income, net of taxes	26		1	—	—	(1)	26
Comprehensive income attributable to common shareholder	$	23,931	6,068	2,737	—	(8,805)	$	23,931

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Balance Sheet

March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi- diaries	Consoli- dating 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	4,986,417		1,358,367	1,207,095	—	—	7,551,879
Less accumulated depreciation	(1,706,529)		(604,021)	(549,169)	—	—	(2,859,719)
Construction in progress	160,331		13,927	29,730	—	—	203,988
Utility property, plant and equipment, net	3,482,630		773,879	691,250	—	—	4,947,759
Nonutility property, plant and equipment, less accumulated depreciation	5,305		115	1,532	—	—	6,952
Total property, plant and equipment, net	3,487,935		773,994	692,782	—	—	4,954,711
Investment in wholly owned subsidiaries, at equity	631,976		—	—	—	(631,976)	—
Current assets
Cash and cash equivalents	29,727		7,730	14,209	77	—	51,743
Restricted cash	11,506		—	—	—	—	11,506
Customer accounts receivable, net	101,605		21,358	18,686	—	—	141,649
Accrued unbilled revenues, net	72,784		14,911	14,118	—	—	101,813
Other accounts receivable, net	12,967		3,006	3,570	—	(14,470)	5,073
Fuel oil stock, at average cost	51,894		9,981	12,813	—	—	74,688
Materials and supplies, at average cost	40,395		9,873	19,458	—	—	69,726
Prepayments and other	29,769		3,534	3,791	—	(675)	36,419
Regulatory assets	42,852		2,840	8,630	—	—	54,322
Total current assets	393,499		73,233	95,275	77	(15,145)	546,939
Other long-term assets
Operating lease right-of-use assets	123,992		14,198	344	—	—	138,534
Regulatory assets	501,393		111,700	106,011	—	—	719,104
Other	102,767		18,591	20,424	—	(6,162)	135,620
Total other long-term assets	728,152		144,489	126,779	—	(6,162)	993,258
Total assets	$	5,241,562	991,716	914,836	77	(653,283)	$	6,494,908
Capitalization and liabilities
Capitalization
Common stock equity	$	2,157,385	320,494	311,405	77	(631,976)	$	2,157,385
Cumulative preferred stock—not subject to mandatory redemption	22,293		7,000	5,000	—	—	34,293
Long-term debt, net	1,176,229		246,310	253,324	—	—	1,675,863
Total capitalization	3,355,907		573,804	569,729	77	(631,976)	3,867,541
Current liabilities
Current portion of operating lease liabilities	64,423		1,844	34	—	—	66,301
Accounts payable	87,437		16,037	19,725	—	—	123,199
Interest and preferred dividends payable	20,075		3,698	4,400	—	(1)	28,172
Taxes accrued, including revenue taxes	107,552		25,372	22,876	—	(675)	155,125
Regulatory liabilities	17,000		5,901	7,469	—	—	30,370
Other	55,478		11,951	17,189	—	(14,618)	70,000
Total current liabilities	351,965		64,803	71,693	—	(15,294)	473,167
Deferred credits and other liabilities
Operating lease liabilities	71,431		12,353	318	—	—	84,102
Deferred income taxes	282,513		53,582	60,663	—	—	396,758
Regulatory liabilities	658,584		174,820	92,365	—	—	925,769
Unamortized tax credits	81,297		15,126	13,758	—	—	110,181
Defined benefit pension and other postretirement benefit plans liability	373,376		76,357	78,566	—	(6,013)	522,286
Other	66,489		20,871	27,744	—	—	115,104
Total deferred credits and other liabilities	1,533,690		353,109	273,414	—	(6,013)	2,154,200
Total capitalization and liabilities	$	5,241,562	991,716	914,836	77	(653,283)	$	6,494,908

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Balance Sheet

December 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi-diaries	Consoli- dating 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)	—
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)	—
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)	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)	$	2,141,918
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)	—
Accounts payable	97,102		19,570	17,177	—	—	133,849
Interest and preferred dividends payable	14,480		3,138	2,790	—	(58)	20,350
Taxes accrued, including revenue taxes	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)	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

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Changes in Common Stock Equity

Three months ended March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Balance, December 31, 2020	$	2,141,918	317,451	309,363	77	(626,891)	$	2,141,918
Net income for common stock	43,358		6,692	5,818	—	(12,510)	43,358
Other comprehensive income, net of taxes	34		1	—	—	(1)	34
Common stock dividends	(27,925)		(3,650)	(3,776)	—	7,426	(27,925)
Balance, March 31, 2021	$	2,157,385	320,494	311,405	77	(631,976)	$	2,157,385

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Changes in Common Stock Equity

Three months ended March 31, 2020  

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Balance, December 31, 2019	$	2,047,352	298,998	292,870	101	(591,969)	$	2,047,352
Net income for common stock	23,905		6,067	2,737	—	(8,804)	23,905
Other comprehensive income, net of taxes	26		1	—	—	(1)	26
Common stock dividends	(26,784)		(4,080)	(3,596)	—	7,676	(26,784)
Common stock issuance expenses	—		—	(1)	—	1	—
Balance, March 31, 2020	$	2,044,499	300,986	292,010	101	(593,097)	$	2,044,499

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Cash Flows

Three months ended March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net cash provided by operating activities	$	18,764	9,635	10,988	—	(7,426)	$	31,961
Cash flows from investing activities
Capital expenditures	(45,293)		(12,728)	(12,340)	—	—	(70,361)
Advances from affiliates	26,700		—	—	—	(26,700)	—
Other	1,182		372	309	—	—	1,863
Net cash used in investing activities	(17,411)		(12,356)	(12,031)	—	(26,700)	(68,498)
Cash flows from financing activities
Common stock dividends	(27,925)		(3,650)	(3,776)	—	7,426	(27,925)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(270)		(134)	(95)	—	—	(499)
Repayment of short-term debt	(50,000)		—	—	—	—	(50,000)
Proceeds from issuance of long-term debt	60,000		30,000	25,000	—	—	115,000
Net decrease in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	—		(18,800)	(7,900)	—	26,700	—
Other	(96)		(11)	(9)	—	—	(116)
Net cash provided by (used in) financing activities	(18,291)		7,405	13,220	—	34,126	36,460
Net increase (decrease) in cash and cash equivalents	(16,938)		4,684	12,177	—	—	(77)
Cash, cash equivalents and restricted cash, beginning of period	58,171		3,046	2,032	77	—	63,326
Cash, cash equivalents and restricted cash, end of period	41,233		7,730	14,209	77	—	63,249
Less: Restricted cash	(11,506)		—	—	—	—	(11,506)
Cash and cash equivalents, end of period	$	29,727	7,730	14,209	77	—	$	51,743

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Cash Flows

Three months ended March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net cash provided by operating activities	$	29,004	9,478	7,931	—	(7,272)	$	39,141
Cash flows from investing activities
Capital expenditures	(83,191)		(18,181)	(17,772)	—	—	(119,144)
Advances from (to) affiliates	(17,000)		8,000	—	—	9,000	—
Other	2,752		64	301	—	(404)	2,713
Net cash used in investing activities	(97,439)		(10,117)	(17,471)	—	8,596	(116,431)
Cash flows from financing activities
Common stock dividends	(26,784)		(4,080)	(3,596)	—	7,676	(26,784)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(270)		(134)	(95)	—	—	(499)
Proceeds from issuance of short-term debt	50,000		—	—	—	—	50,000
Proceeds from issuance of long-term debt	95,000		—	—	—	—	95,000
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	(46,987)		2,500	14,500	—	(9,000)	(38,987)
Other	(21)		(1)	(1)	—	—	(23)
Net cash provided by (used in) financing activities	70,938		(1,715)	10,808	—	(1,324)	78,707
Net increase (decrease) in cash and cash equivalents	2,503		(2,354)	1,268	—	—	1,417
Cash, cash equivalents and restricted cash, beginning of period	32,988		7,008	1,797	101	—	41,894
Cash, cash equivalents and restricted cash, end of period	35,491		4,654	3,065	101	—	43,311
Less: Restricted cash	(30,902)		—	—	—	—	(30,902)
Cash and cash equivalents, end of period	$	4,589	4,654	3,065	101	—	$	12,409

XML

Bank segment

3 Months Ended

Mar. 31, 2021

Bank Subsidiary [Abstract]

Bank segment

Bank segment

Selected financial information

American Savings Bank, F.S.B.

Statements of Income and Comprehensive Income Data

	Three months ended March 31
(in thousands)	2021		2020
Interest and dividend income
Interest and fees on loans	$	49,947	$	55,545
Interest and dividends on investment securities	8,673		9,430
Total interest and dividend income	58,620		64,975
Interest expense
Interest on deposit liabilities	1,462		3,587
Interest on other borrowings	27		313
Total interest expense	1,489		3,900
Net interest income	57,131		61,075
Provision for credit losses	(8,435)		10,401
Net interest income after provision for credit losses	65,566		50,674
Noninterest income
Fees from other financial services	5,073		4,571
Fee income on deposit liabilities	3,863		5,113
Fee income on other financial products	2,442		1,872
Bank-owned life insurance	2,561		794
Mortgage banking income	4,300		2,000
Gain on sale of investment securities, net	528		—
Other income, net	272		413
Total noninterest income	19,039		14,763
Noninterest expense
Compensation and employee benefits	28,037		25,777
Occupancy	4,969		5,267
Data processing	4,351		3,837
Services	2,862		2,809
Equipment	2,222		2,339
Office supplies, printing and postage	1,044		1,341
Marketing	648		802
FDIC insurance	816		102
Other expense	2,554		4,194
Total noninterest expense	47,503		46,468
Income before income taxes	37,102		18,969
Income taxes	7,546		3,208
Net income	29,556		15,761
Other comprehensive income (loss), net of taxes	(45,754)		19,847
Comprehensive income (loss)	$	(16,198)	$	35,608

Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*:

	Three months ended March 31
(in thousands)	2021		2020
Interest and dividend income	$	58,620	$	64,975
Noninterest income	19,039		14,763
Less: Gain on sale of investment securities, net	528		—
*Revenues-Bank	77,131		79,738
Total interest expense	1,489		3,900
Provision for credit losses	(8,435)		10,401
Noninterest expense	47,503		46,468
Less: Retirement defined benefits expense (credit)—other than service costs	(1,278)		434
*Expenses-Bank	41,835		60,335
*Operating income-Bank	35,296		19,403
Add back: Retirement defined benefits expense (credit)—other than service costs	(1,278)		434
Add back: Gain on sale of investment securities, net	528		—
Income before income taxes	$	37,102	$	18,969

American Savings Bank, F.S.B.

Balance Sheets Data

(in thousands)	March 31, 2021				December 31, 2020
Assets
Cash and due from banks			$	113,698			$	178,422
Interest-bearing deposits			110,365				114,304
Cash and cash equivalents			224,063				292,726
Investment securities
Available-for-sale, at fair value			2,305,257				1,970,417
Held-to-maturity, at amortized cost (fair value of $285,599 and $229,963, respectively)			295,046				226,947
Stock in Federal Home Loan Bank, at cost			10,000				8,680
Loans held for investment			5,310,081				5,333,843
Allowance for credit losses			(91,793)				(101,201)
Net loans			5,218,288				5,232,642
Loans held for sale, at lower of cost or fair value			23,637				28,275
Other			559,543				554,656
Goodwill			82,190				82,190
Total assets			$	8,718,024			$	8,396,533
Liabilities and shareholder’s equity
Deposit liabilities—noninterest-bearing			$	2,833,844			$	2,598,500
Deposit liabilities—interest-bearing			4,911,450				4,788,457
Other borrowings			102,685				89,670
Other			154,418				183,731
Total liabilities			8,002,397				7,660,358
Commitments and contingencies
Common stock			1				1
Additional paid-in capital			352,408				351,758
Retained earnings			394,026				369,470
Accumulated other comprehensive income (loss), net of taxes
Net unrealized gains (losses) on securities	$	(25,791)			$	19,986
Retirement benefit plans	(5,017)		(30,808)		(5,040)		14,946
Total shareholder’s equity			715,627				736,175
Total liabilities and shareholder’s equity			$	8,718,024			8,396,533
Other assets
Bank-owned life insurance			$	162,821			$	163,265
Premises and equipment, net			206,247				206,134
Accrued interest receivable			24,381				24,616
Mortgage-servicing rights			10,685				10,020
Low-income housing investments			80,791				83,435
Other			74,618				67,186
			$	559,543			$	554,656
Other liabilities
Accrued expenses			$	55,073			$	62,694
Federal and state income taxes payable			1,709				6,582
Cashier’s checks			29,363				38,011
Advance payments by borrowers			5,863				10,207
Other			62,410				66,237
			$	154,418			$	183,731

Bank-owned life insurance is life insurance purchased by ASB on the lives of certain key employees, with ASB as the beneficiary. The insurance is used to fund employee benefits through tax-free income from increases in the cash value of the policies and insurance proceeds paid to ASB upon an insured’s death.

Other borrowings consisted of securities sold under agreements to repurchase, federal funds purchased and advances from the Federal Home Loan Bank (FHLB) of $102.7 million, nil and nil, respectively, as of March 31, 2021 and $89.7 million, nil and nil, respectively, as of December 31, 2020.

Investment securities.  The major components of investment securities were as follows:

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value		Gross unrealized losses
									Less than 12 months					12 months or longer
(dollars in thousands)									Number of issues	Fair  value		Amount		Number of issues	Fair  value		Amount
March 31, 2021
Available-for-sale
U.S. Treasury and federal agency obligations	$	55,969	$	1,719	$	(41)	$	57,647	1	$	4,908	$	(41)	—	$	—	$	—
Mortgage-backed securities*	2,239,311		15,404		(53,363)		2,201,352		92	1,613,008		(53,344)		1	958		(19)
Corporate bonds	29,781		1,050		—		30,831		—	—		—		—	—		—
Mortgage revenue bonds	15,427		—		—		15,427		—	—		—		—	—		—
	$	2,340,488	$	18,173	$	(53,404)	$	2,305,257	93	$	1,617,916	$	(53,385)	1	$	958	$	(19)
Held-to-maturity
Mortgage-backed securities*	$	295,046	$	2,812	$	(12,259)	$	285,599	16	$	220,908	$	(12,259)	—	$	—	$	—
	$	295,046	$	2,812	$	(12,259)	$	285,599	16	$	220,908	$	(12,259)	—	$	—	$	—
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)	—	$	—	$	—

* Issued or guaranteed by U.S. Government agencies or sponsored agencies

ASB does not believe that the investment securities that were in an unrealized loss position at March 31, 2021, represent a credit loss. Total gross unrealized losses were primarily attributable to change in market conditions. On a quarterly basis the investment securities are evaluated for changes in financial condition of the issuer. Based upon ASB’s evaluation, all securities held within the investment portfolio continue to be investment grade by one or more agencies. The contractual cash flows of the U.S. Treasury, federal agency obligations and agency mortgage-backed securities are backed by the full faith and credit guaranty of the United States government or an agency of the government. ASB does not intend to sell the securities before the recovery of its amortized cost basis and there have been no adverse changes in the timing of the contractual cash flows for the securities. ASB’s investment securities portfolio did not require an allowance for credit losses at March 31, 2021 and December 31, 2020.

U.S. Treasury, federal agency obligations, corporate bonds, and mortgage revenue bonds have contractual terms to maturity. Mortgage-backed securities have contractual terms to maturity, but require periodic payments to reduce principal. In addition, expected maturities will differ from contractual maturities because borrowers have the right to prepay the underlying mortgages.

The contractual maturities of investment securities were as follows:

March 31, 2021	Amortized cost		Fair value
(in thousands)
Available-for-sale
Due in one year or less	$	11,996	$	12,011
Due after one year through five years	43,530		45,180
Due after five years through ten years	30,224		31,287
Due after ten years	15,427		15,427
	101,177		103,905
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	2,239,311		2,201,352
Total available-for-sale securities	$	2,340,488	$	2,305,257
Held-to-maturity
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	$	295,046	$	285,599
Total held-to-maturity securities	$	295,046	$	285,599

Proceeds from the sale of available-for-sale securities were $197.4 million and nil, respectively, for the three months ended March 31, 2021 and 2020. Gross realized gains and losses for the three months ended March 31, 2021 were $1.0 million and $0.5 million, respectively. Gross realized gains and losses for the three months ended March 31, 2020 were nil.

Loans. The components of loans were summarized as follows:

	March 31, 2021		December 31, 2020
(in thousands)
Real estate:
Residential 1-4 family	$	2,107,537	$	2,144,239
Commercial real estate	1,012,968		983,865
Home equity line of credit	901,462		963,578
Residential land	17,468		15,617
Commercial construction	114,455		121,424
Residential construction	13,365		11,022
Total real estate	4,167,255		4,239,745
Commercial	1,010,004		936,748
Consumer	148,511		168,733
Total loans	5,325,770		5,345,226
Deferred fees and discounts	(15,689)		(11,383)
Allowance for credit losses	(91,793)		(101,201)
Total loans, net	$	5,218,288	$	5,232,642

ASB's policy is to require private mortgage insurance on all real estate loans when the loan-to-value ratio of the property exceeds 80% of the lower of the appraised value or purchase price at origination. For non-owner occupied residential property purchases, the loan-to-value ratio may not exceed 75% of the lower of the appraised value or purchase price at origination.

Allowance for credit losses.  The allowance for credit losses (balances and changes) by portfolio segment were as follows:

(in thousands)	Residential 1-4 family		Commercial real estate		Home equity line of credit		Residential land		Commercial construction		Residential construction		Commercial loans		Consumer loans		Total
Three months ended March 31, 2021
Allowance for credit losses:
Beginning balance	$	4,600	$	35,607	$	6,813	$	609	$	4,149	$	11	$	25,462	$	23,950	$	101,201
Charge-offs	—		—		(50)		—		—		—		(771)		(2,860)		(3,681)
Recoveries	3		—		15		10		—		—		273		1,007		1,308
Provision	658		(1,262)		(877)		(46)		(2,696)		5		(460)		(2,357)		(7,035)
Ending balance	$	5,261	$	34,345	$	5,901	$	573	$	1,453	$	16	$	24,504	$	19,740	$	91,793
Three months ended March 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	—		—		—		(8)		—		—		(369)		(6,254)		(6,631)
Recoveries	53		—		6		9		—		—		186		764		1,018
Provision	(107)		1,326		(162)		(34)		1,060		(3)		1,993		5,828		9,901
Ending balance	$	4,476	$	16,587	$	6,225	$	352	$	3,446	$	14	$	12,977	$	33,007	$	77,084

Allowance for loan commitments.  The allowance for loan commitments by portfolio segment were as follows:

(in thousands)	Home equity  line of credit		Commercial construction		Commercial loans		Total
Three months ended March 31, 2021
Allowance for loan commitments:
Beginning balance	$	300	$	3,000	$	1,000	$	4,300
Provision	100		(1,700)		200		(1,400)
Ending balance	$	400	$	1,300	$	1,200	$	2,900
Three months ended March 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	—		515		(15)		500
Ending balance	$	300	$	3,191	$	309	$	3,800

Credit quality.  ASB performs an internal loan review and grading on an ongoing basis. The review provides management with periodic information as to the quality of the loan portfolio and effectiveness of its lending policies and procedures. The objectives of the loan review and grading procedures are to identify, in a timely manner, existing or emerging credit trends so that appropriate steps can be initiated to manage risk and avoid or minimize future losses. Loans subject to grading include commercial, commercial real estate and commercial construction loans.

Each commercial and commercial real estate loan is assigned an Asset Quality Rating (AQR) reflecting the likelihood of repayment or orderly liquidation of that loan transaction pursuant to regulatory credit classifications:  Pass, Special Mention, Substandard, Doubtful, and Loss. The AQR is a function of the probability of default model rating, the loss given default, and possible non-model factors which impact the ultimate collectability of the loan such as character of the business owner/guarantor, interim period performance, litigation, tax liens and major changes in business and economic conditions. Pass exposures generally are well protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral. Special Mention loans have potential weaknesses that, if left uncorrected, could jeopardize the liquidation of the debt. Substandard loans have well-defined weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that ASB may sustain some loss. An asset classified Doubtful has the weaknesses of those classified Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. An asset classified Loss is considered uncollectible and has such little value that its continuance as a bankable asset is not warranted.

The credit risk profile by vintage date based on payment activity or internally assigned grade for loans was as follows:

	Term Loans by Origination Year												Revolving Loans
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving		Converted to term loans		Total
March 31, 2021
Residential 1-4 family
Current	$	150,713	$	549,327	$	184,339	$	97,560	$	179,131	$	934,471	$	—	$	—	$	2,095,541
30-59 days past due	—		280		—		—		—		2,081		—		—		2,361
60-89 days past due	—		—		3,018		431		—		1,954		—		—		5,403
Greater than 89 days past due	—		—		942		—		—		3,290		—		—		4,232
	150,713		549,607		188,299		97,991		179,131		941,796		—		—		2,107,537
Home equity line of credit
Current	—		—		—		—		—		—		861,116		36,792		897,908
30-59 days past due	—		—		—		—		—		—		659		473		1,132
60-89 days past due	—		—		—		—		—		—		261		73		334
Greater than 89 days past due	—		—		—		—		—		—		1,243		845		2,088
	—		—		—		—		—		—		863,279		38,183		901,462
Residential land
Current	2,794		8,354		2,884		1,290		855		292		—		—		16,469
30-59 days past due	—		—		—		—		—		699		—		—		699
60-89 days past due	—		—		—		—		—		—		—		—		—
Greater than 89 days past due	—		—		—		—		—		300		—		—		300
	2,794		8,354		2,884		1,290		855		1,291		—		—		17,468
Residential construction
Current	1,114		7,865		3,344		383		659		—		—		—		13,365
30-59 days past due	—		—		—		—		—		—		—		—		—
60-89 days past due	—		—		—		—		—		—		—		—		—
Greater than 89 days past due	—		—		—		—		—		—		—		—		—
	1,114		7,865		3,344		383		659		—		—		—		13,365
Consumer
Current	6,658		25,307		57,781		29,734		4,219		475		16,332		3,729		144,235
30-59 days past due	125		164		577		452		90		1		106		125		1,640
60-89 days past due	—		149		623		372		119		1		80		92		1,436
Greater than 89 days past due	—		218		356		280		56		1		199		90		1,200
	6,783		25,838		59,337		30,838		4,484		478		16,717		4,036		148,511
Commercial real estate
Pass	23,091		274,952		69,384		60,627		28,174		222,617		11,000		—		689,845
Special Mention	—		4,914		29,597		57,489		51,586		97,247		—		—		240,833
Substandard	—		—		14,647		4,170		1,877		61,596		—		—		82,290
Doubtful	—		—		—		—		—		—		—		—		—
	23,091		279,866		113,628		122,286		81,637		381,460		11,000		—		1,012,968
Commercial construction
Pass	—		21,414		39,513		26,990		—		2,917		20,972		—		111,806
Special Mention	245		2,404		—		—		—		—		—		—		2,649
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
	245		23,818		39,513		26,990		—		2,917		20,972		—		114,455
Commercial
Pass	169,095		337,753		96,251		60,462		28,545		51,072		91,178		19,666		854,022
Special Mention	65		38,316		15,024		1,820		6,725		33,990		26,301		26		122,267
Substandard	—		275		7,921		2,004		3,765		11,276		6,665		1,809		33,715
Doubtful	—		—		—		—		—		—		—		—		—
	169,160		376,344		119,196		64,286		39,035		96,338		124,144		21,501		1,010,004
Total loans	$	353,900	$	1,271,692	$	526,201	$	344,064	$	305,801	$	1,424,280	$	1,036,112	$	63,720	$	5,325,770

	Term Loans by Origination Year												Revolving Loans
(in thousands)	2020		2019		2018		2017		2016		Prior		Revolving		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

Revolving loans converted to term loans during the three months ended March 31, 2021 in the commercial, home equity line of credit and consumer portfolios was $0.5 million, $6.2 million, and $0.7 million, respectively. Revolving loans converted to term loans during the three months ended March 31, 2020 in the commercial, home equity line of credit and consumer portfolios was $2.0 million, $1.8 million and $1.0 million, respectively.

The credit risk profile based on payment activity for loans was as follows:

(in thousands)	30-59 days past due		60-89 days past due		Greater than 90 days		Total past due		Current		Total financing receivables		Amortized cost> 90 days and accruing
March 31, 2021
Real estate:
Residential 1-4 family	$	2,361	$	5,403	$	4,232	$	11,996	$	2,095,541	$	2,107,537	$	—
Commercial real estate	1,681		—		—		1,681		1,011,287		1,012,968		—
Home equity line of credit	1,132		334		2,088		3,554		897,908		901,462		—
Residential land	699		—		300		999		16,469		17,468		—
Commercial construction	—		—		—		—		114,455		114,455		—
Residential construction	—		—		—		—		13,365		13,365		—
Commercial	146		47		73		266		1,009,738		1,010,004		—
Consumer	1,640		1,436		1,200		4,276		144,235		148,511		—
Total loans	$	7,659	$	7,220	$	7,893	$	22,772	$	5,302,998	$	5,325,770	$	—
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	$	—

The credit risk profile based on nonaccrual loans were as follows:

(in thousands)	March 31, 2021						December 31, 2020
	With a Related ACL		Without a Related ACL		Total		With a Related ACL		Without a Related ACL		Total
Real estate:
Residential 1-4 family	$	16,945	$	2,987	$	19,932	$	8,991	$	2,835	$	11,826
Commercial real estate	15,634		2,828		18,462		15,847		2,875		18,722
Home equity line of credit	5,075		1,587		6,662		5,791		1,567		7,358
Residential land	107		300		407		108		300		408
Commercial construction	—		—		—		—		—		—
Residential construction	—		—		—		—		—		—
Commercial	1,763		2,918		4,681		1,819		3,328		5,147
Consumer	3,192		—		3,192		3,935		—		3,935
Total	$	42,716	$	10,620	$	53,336	$	36,491	$	10,905	$	47,396

The credit risk profile based on loans whose terms have been modified and accruing interest were as follows:

(in thousands)	March 31, 2021		December 31, 2020
Real estate:
Residential 1-4 family	$	7,453	$	7,932
Commercial real estate	3,254		3,281
Home equity line of credit	7,727		8,148
Residential land	1,738		1,555
Commercial construction	—		—
Residential construction	—		—
Commercial	5,737		6,108
Consumer	54		54
Total troubled debt restructured loans accruing interest	$	25,963	$	27,078

ASB did not recognize interest on nonaccrual loans for the three months ended March 31, 2021 and 2020.

Troubled debt restructurings.  A loan modification is deemed to be a TDR when the borrower is determined to be experiencing financial difficulties and ASB grants a concession it would not otherwise consider.

The allowance for credit losses on TDR loans that do not share risk characteristics are individually evaluated based on the present value of expected future cash flows discounted at the loan’s effective original contractual rate or based on the fair value of collateral less cost to sell. The financial impact of the estimated loss is an increase to the allowance associated with the modified loan. When available information confirms that specific loans or portions thereof are uncollectible (confirmed losses), these amounts are charged off against the allowance for credit losses.

Loan modifications that occurred during the first three months of 2021 and 2020 were as follows:

Loans modified as a TDR	Three months ended March 31, 2021
(dollars in thousands)	Number  of contracts	Outstanding recorded  investment  (as of period end)1		Related allowance (as of period end)
Troubled debt restructurings
Real estate:
Residential 1-4 family	12	$	8,283	$	298
Commercial real estate	1	482		—
Home equity line of credit	1	170		21
Residential land	1	271		11
Commercial construction	—	—		—
Residential construction	—	—		—
Commercial	2	59		19
Consumer	—	—		—
	17	$	9,265	$	349

	Three months ended March 31, 2020
(dollars in thousands)	Number  of contracts	Outstanding recorded  investment  (as of period end)1		Related allowance (as of period end)
Troubled debt restructurings
Real estate:
Residential 1-4 family	1	$	148	$	8
Commercial real estate	2	16,584		4,281
Home equity line of credit	—	—		—
Residential land	—	—		—
Commercial construction	—	—		—
Residential construction	—	—		—
Commercial	4	756		278
Consumer	—	—		—
	7	$	17,488	$	4,567

1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included.

There were no loans modified in TDRs that experienced a payment default of 90 days or more during the first three months of 2021 and 2020.

If a loan modified in a TDR subsequently defaults, ASB evaluates the loan for further impairment. Based on its evaluation, adjustments may be made in the allocation of the allowance or partial charge-offs may be taken to further write-down the carrying value of the loan. Commitments to lend additional funds to borrowers whose loan terms have been modified in a TDR totaled nil at March 31, 2021 and December 31, 2020.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides that a financial institution may elect to suspend the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and any related impairment for accounting purposes.

In response to the COVID-19 pandemic, the Board of Governors of the FRB, the FDIC, the National Credit Union Administration, the OCC, and the Consumer Financial Protection Bureau, in consultation with the state financial regulators (collectively, the “agencies”) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to accounting for loan modifications, past due reporting and nonaccrual status and charge-offs.

Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with the FASB staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payment. Financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreement. If a financial institution agrees to a payment deferral, these loans would not be considered past due during the period of the deferral. Lastly, during short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual or as classified.

Collateral-dependent loans. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral. Loans considered collateral-dependent were as follows:

	March 31, 2021		December 31, 2020
(in thousands)	Amortized cost		Amortized cost		Collateral type
Real estate:
Residential 1-4 family	$	2,782	$	2,541	Residential real estate property
Commercial real estate	2,828		2,875		Commercial real estate property
Home equity line of credit	1,587		1,567		Residential real estate property
Residential land	300		300		Residential real estate property
Total real estate	7,497		7,283
Commercial	889		934		Business assets
Total	$	8,386	$	8,217

ASB had $3.8 million of mortgage loans collateralized by residential real estate property that were in the process of foreclosure at March 31, 2021 and December 31, 2020.

Mortgage servicing rights (MSRs). In its mortgage banking business, ASB sells residential mortgage loans to government-sponsored entities and other parties, who may issue securities backed by pools of such loans. ASB retains no beneficial interests in these loans other than the servicing rights of certain loans sold.

ASB received proceeds from the sale of residential mortgages of $170.9 million and $72.5 million for the three months ended March 31, 2021 and 2020, respectively, and recognized gains on such sales of $4.3 million and $2.0 million for the three months ended March 31, 2021 and 2020, respectively.

There were no repurchased mortgage loans for the three months ended March 31, 2021 and 2020. The repurchase reserve was $0.1 million as of March 31, 2021 and 2020.

Mortgage servicing fees, a component of other income, net, were $0.9 million and $0.8 million for the three months ended March 31, 2021 and 2020, respectively.

Changes in the carrying value of MSRs were as follows:

(in thousands)	Gross carrying amount1		Accumulated amortization		Valuation allowance		Net carrying amount
March 31, 2021	$	20,830	$	(10,141)	$	(4)	$	10,685
December 31, 2020	22,950		(12,670)		(260)		10,020

1     Reflects impact of loans paid in full

Changes related to MSRs were as follows:

	Three months ended March 31
(in thousands)	2021		2020
Mortgage servicing rights
Beginning balance	$	10,280	$	9,101
Amount capitalized	1,547		636
Amortization	(1,138)		(617)
Other-than-temporary impairment	—		—
Carrying amount before valuation allowance	10,689		9,120
Valuation allowance for mortgage servicing rights
Beginning balance	260		—
Provision	(256)		—
Other-than-temporary impairment	—		—
Ending balance	4		—
Net carrying value of mortgage servicing rights	$	10,685	$	9,120

ASB capitalizes MSRs acquired upon the sale of mortgage loans with servicing rights retained. On a monthly basis, ASB compares the net carrying value of the MSRs to its fair value to determine if there are any changes to the valuation allowance and/or other-than-temporary impairment for the MSRs.

ASB uses a present value cash flow model to estimate the fair value of MSRs. Impairment is recognized through a valuation allowance for each stratum when the carrying amount exceeds fair value, with any associated provision recorded as a component of loan servicing fees included in “Revenues - bank” in the consolidated statements of income. A direct write-down is recorded when the recoverability of the valuation allowance is deemed to be unrecoverable.

Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows:

(dollars in thousands)	March 31, 2021			December 31, 2020
Unpaid principal balance	$	1,505,963		$	1,450,312
Weighted average note rate	3.57		%	3.68		%
Weighted average discount rate	9.25		%	9.25		%
Weighted average prepayment speed	12.0		%	17.7		%

The sensitivity analysis of fair value of MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows:

(dollars in thousands)	March 31, 2021		December 31, 2020
Prepayment rate:
25 basis points adverse rate change	$	(659)	$	(738)
50 basis points adverse rate change	(1,376)		(1,445)
Discount rate:
25 basis points adverse rate change	(110)		(68)
50 basis points adverse rate change	(218)		(135)

The effect of a variation in certain assumptions on fair value is calculated without changing any other assumptions. This analysis typically cannot be extrapolated because the relationship of a change in one key assumption to the changes in the fair value of MSRs typically is not linear.

Other borrowings.  As of March 31, 2021 and December 31, 2020, ASB had no FHLB advances outstanding or federal funds purchased with the Federal Reserve Bank. ASB was in compliance with all Advances, Pledge and Security Agreement requirements as of March 31, 2021.

Securities sold under agreements to repurchase are accounted for as financing transactions and the obligations to repurchase these securities are recorded as liabilities in the condensed consolidated balance sheets. ASB pledges investment securities as collateral for securities sold under agreements to repurchase. All such agreements are subject to master netting arrangements, which provide for a conditional right of set-off in case of default by either party; however, ASB presents securities sold under agreements to repurchase on a gross basis in the balance sheet. The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties:

(in millions)	Gross amount  of recognized  liabilities		Gross amount  offset in the  Balance Sheets		Net amount of liabilities presented in the Balance Sheets
Repurchase agreements
March 31, 2021	$	103	$	—	$	103
December 31, 2020	90		—		90

	Gross amount not offset in the Balance Sheets
(in millions)	Net amount of liabilities presented in the Balance Sheets		Financial instruments		Cash collateral pledged
Commercial account holders
March 31, 2021	$	103	$	122	$	—
December 31, 2020	90		92		—

The securities underlying the agreements to repurchase are book-entry securities and were delivered by appropriate entry into the counterparties’ accounts or into segregated tri-party custodial accounts at the FHLB. The securities underlying the agreements to repurchase continue to be reflected in ASB’s asset accounts.

Derivative financial instruments. ASB enters into interest rate lock commitments (IRLCs) with borrowers, and forward commitments to sell loans or to-be-announced mortgage-backed securities to investors to hedge against the inherent interest rate and pricing risks associated with selling loans.

ASB enters into IRLCs for residential mortgage loans, which commit ASB to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose ASB to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free-standing derivatives which are carried at fair value with changes recorded in mortgage banking income.

ASB enters into forward commitments to hedge the interest rate risk for rate locked mortgage applications in process and closed mortgage loans held for sale. These commitments are primarily forward sales of to-be-announced mortgage backed securities. Generally, when mortgage loans are closed, the forward commitment is liquidated and replaced with a mandatory delivery forward sale of the mortgage to a secondary market investor. In some cases, a best-efforts forward sale agreement is utilized as the forward commitment. These commitments are free-standing derivatives which are carried at fair value with changes recorded in mortgage banking income.

Changes in the fair value of IRLCs and forward commitments subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time.

The notional amount and fair value of ASB’s derivative financial instruments were as follows:

	March 31, 2021				December 31, 2020
(in thousands)	Notional amount		Fair value		Notional amount		Fair value
Interest rate lock commitments	$	49,316	$	438	$	120,980	$	4,536
Forward commitments	49,500		340		100,500		(500)

ASB’s derivative financial instruments, their fair values and balance sheet location were as follows:

Derivative Financial Instruments Not Designated as Hedging Instruments 1	March 31, 2021				December 31, 2020
(in thousands)	Asset derivatives		Liability derivatives		Asset derivatives		Liability derivatives
Interest rate lock commitments	$	456	$	(18)	$	4,536	$	—
Forward commitments	340		—		—		500
	$	796	$	(18)	$	4,536	$	500

1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the balance sheets.

The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in ASB’s statements of income:

Derivative Financial Instruments Not Designated as Hedging Instruments	Location of net gains (losses) recognized in the Statements of Income	Three months ended March 31
(in thousands)		2021		2020
Interest rate lock commitments	Mortgage banking income	$	(4,098)	$	1,555
Forward commitments	Mortgage banking income	840		(543)
		$	(3,258)	$	1,012

Low-Income Housing Tax Credit (LIHTC). ASB’s unfunded commitments to fund its LIHTC investment partnerships were $37.8 million and $41.0 million at March 31, 2021 and December 31, 2020, respectively. These unfunded commitments were unconditional and legally binding and are recorded in other liabilities with a corresponding increase in other assets. As of March 31, 2021, ASB did not have any impairment losses resulting from forfeiture or ineligibility of tax credits or other circumstances related to its LIHTC investment partnerships.

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Credit agreements

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Credit agreements

Credit agreements

HEI and Hawaiian Electric each entered into a separate agreement with a syndicate of eight financial institutions (the HEI Facility and Hawaiian Electric Facility, respectively, and together, the Credit Facilities), effective July 3, 2017, to amend and restate their respective previously existing revolving unsecured credit agreements. The $150 million HEI Facility and $200 million Hawaiian Electric Facility both will terminate on June 30, 2022. Neither of the facilities are collateralized. As of March 31, 2021 and December 31, 2020, no amounts were outstanding under the Credit Facilities.

The Credit Facilities will be maintained to support each company’s respective short-term commercial paper program, but may be drawn on to meet each company’s respective working capital needs and general corporate purposes.

Hawaiian Electric has a $75 million 364-day revolving credit agreement with no amount outstanding at March 31, 2021. On April 19, 2021, the revolving credit agreement terminated and was not renewed.

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Shareholders' equity

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Shareholders' equity

Shareholders’ equity

Accumulated other comprehensive income/(loss).  Changes in the balances of each component of accumulated other comprehensive income/(loss) (AOCI) were as follows:

	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, 2020	$	19,986	$	(3,363)	$	(17,887)	$	(1,264)	$	(2,919)
Current period other comprehensive income (loss)	(45,777)		1,562		199		(44,016)		34
Balance, March 31, 2021	$	(25,791)	$	(1,801)	$	(17,688)	$	(45,280)	$	(2,885)
Balance, December 31, 2019	$	2,481	$	(1,613)	$	(20,907)	$	(20,039)	$	(1,279)
Current period other comprehensive income (loss)	19,448		(1,784)		548		18,212		26
Balance, March 31, 2020	$	21,929	$	(3,397)	$	(20,359)	$	(1,827)	$	(1,253)

Reclassifications out of AOCI were as follows:

	Amount reclassified from AOCI				Affected line item in the  Statements of Income / Balance Sheets
Three months ended March 31	2021		2020
(in thousands)
HEI consolidated
Net realized gains on securities included in net income	$	(387)	$	—	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	6,010		5,706		See Note 8 for additional details
Impact of D&Os of the PUC included in regulatory assets	(5,811)		(5,158)		See Note 8 for additional details
Total reclassifications	$	(188)	$	548
Hawaiian Electric consolidated
Retirement benefit plans:
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost	$	5,845	$	5,184	See Note 8 for additional details
Impact of D&Os of the PUC included in regulatory assets	(5,811)		(5,158)		See Note 8 for additional details
Total reclassifications	$	34	$	26

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Revenues

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

Revenue from contracts with customers. The following tables disaggregate revenues by major source, timing of revenue recognition, and segment:

	Three months ended March 31, 2021
(in thousands)	Electric utility		Bank		Other		Total
Revenues from contracts with customers
Electric energy sales - residential	$	181,239	$	—	$	—	$	181,239
Electric energy sales - commercial	168,465		—		—		168,465
Electric energy sales - large light and power	176,815		—		—		176,815
Electric energy sales - other	2,479		—		—		2,479
Bank fees	—		11,378		—		11,378
Other sales	—		—		924		924
Total revenues from contracts with customers	528,998		11,378		924		541,300
Revenues from other sources
Regulatory revenue	$	28,429	$	—	$	—	$	28,429
Bank interest and dividend income	—		58,620		—		58,620
Other bank noninterest income	—		7,133		—		7,133
Other	7,437		—		27		7,464
Total revenues from other sources	35,866		65,753		27		101,646
Total revenues	$	564,864	$	77,131	$	951	$	642,946
Timing of revenue recognition
Services/goods transferred at a point in time	$	—	$	11,378	$	—	$	11,378
Services/goods transferred over time	528,998		—		924		529,922
Total revenues from contracts with customers	$	528,998	$	11,378	$	924	$	541,300

	Three months ended March 31, 2020
(in thousands)	Electric utility		Bank		Other		Total
Revenues from contracts with customers
Electric energy sales - residential	$	190,266	$	—	$	—	$	190,266
Electric energy sales - commercial	197,105		—		—		197,105
Electric energy sales - large light and power	216,220		—		—		216,220
Electric energy sales - other	3,458		—		—		3,458
Bank fees	—		11,556		—		11,556
Total revenues from contracts with customers	607,049		11,556		—		618,605
Revenues from other sources
Regulatory revenue	(15,304)		—		—		(15,304)
Bank interest and dividend income	—		64,975		—		64,975
Other bank noninterest income	—		3,207		—		3,207
Other	5,697		—		6		5,703
Total revenues from other sources	(9,607)		68,182		6		58,581
Total revenues	$	597,442	$	79,738	$	6	$	677,186
Timing of revenue recognition
Services/goods transferred at a point in time	$	—	$	11,556	$	—	$	11,556
Services/goods transferred over time	607,049		—		—		607,049
Total revenues from contracts with customers	$	607,049	$	11,556	$	—	$	618,605

There are no material contract assets or liabilities associated with revenues from contracts with customers existing at the beginning of the period or as of March 31, 2021. Accounts receivable and unbilled revenues related to contracts with customers represent an unconditional right to consideration since all performance obligations have been satisfied. These amounts are disclosed as accounts receivable and unbilled revenues, net on HEI’s condensed consolidated balance sheets and customer accounts receivable, net and accrued unbilled revenues, net on Hawaiian Electric’s condensed consolidated balance sheets.

As of March 31, 2021, the Company had no material remaining performance obligations due to the nature of the Company’s contracts with its customers. For the Utilities, performance obligations are fulfilled as electricity is delivered to customers. For ASB, fees are recognized when a transaction is completed.

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Retirement benefits

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Retirement benefits

Retirement benefits

Defined benefit pension and other postretirement benefit plans information.  For the first three months of 2021, the Company contributed $9 million ($9 million by the Utilities) to its pension and other postretirement benefit plans, compared to $17 million ($17 million by the Utilities) in the first three months of 2020. The Company’s current estimate of total contributions to its pension and other postretirement benefit plans in 2021 is $52 million ($51 million by the Utilities, $1 million by HEI and nil by ASB), compared to $71 million ($70 million by the Utilities, $1 million by HEI and nil by ASB) in 2020. In addition, the Company expects to pay directly $3 million ($1 million by the Utilities) of benefits in 2021, compared to $2 million ($1 million by the Utilities) paid in 2020.

The components of net periodic pension costs (NPPC) and net periodic benefit costs (NPBC) for HEI consolidated and Hawaiian Electric consolidated were as follows:

	Pension benefits				Other benefits
Three months ended March 31	2021		2020		2021		2020
(in thousands)
HEI consolidated
Service cost	$	20,464	$	18,363	$	705	$	631
Interest cost	18,801		20,163		1,569		1,855
Expected return on plan assets	(33,067)		(28,466)		(3,233)		(3,038)
Amortization of net prior period (gain)/cost	—		3		(383)		(440)
Amortization of net actuarial losses1	1,556		8,057		254		50
Net periodic pension/benefit cost (return)	7,754		18,120		(1,088)		(942)
Impact of PUC D&Os	11,167		6,262		970		777
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$	18,921	$	24,382	$	(118)	$	(165)
Hawaiian Electric consolidated
Service cost	$	19,994	$	17,891	$	699	$	626
Interest cost	17,531		18,715		1,504		1,782
Expected return on plan assets	(31,368)		(26,855)		(3,182)		(2,990)
Amortization of net prior period (gain)/cost	—		2		(383)		(440)
Amortization of net actuarial losses1	2,559		7,368		250		51
Net periodic pension/benefit cost (return)	8,716		17,121		(1,112)		(971)
Impact of PUC D&Os	11,167		6,262		970		777
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$	19,883	$	23,383	$	(142)	$	(194)

1 Three months ended March 31, 2021 amounts include the one-time cumulative impact of the change in accounting principle for the plans’ fixed income securities from the calculated market-related value method to the fair value method, which was recorded in the first quarter of 2021.

HEI consolidated recorded retirement benefits expense of $11 million ($12 million by the Utilities) in the first three months of 2021 and $15 million ($14 million by the Utilities) in the first three months of 2020 and charged the remaining net periodic benefit cost primarily to electric utility plant.

Effective January 1, 2021, the Company adopted a change in accounting principle for the plans’ fixed income securities from the calculated market-related value method to the fair value method in the calculation of the expected return on plan assets component of NPPC and NPBC. The remaining plan assets continue to use the calculated market-related value methodology. The Company considers the fair value approach to be preferable for its fixed-income securities portfolio because it results in a current reflection of the changes in the value of plan assets in a way similar to the obligations it is intended to hedge. The Company evaluated the effect of this change in accounting principle and deemed it to be immaterial to the historical financial statements of the Company and Hawaiian Electric and, therefore, did not account for the change retrospectively and recorded the cumulative effects from the change in accounting principle in earnings for non-Utility businesses in the first quarter of 2021.

Amounts related to the Utilities were reflected as adjustments to regulatory assets as appropriate, consistent with the expected regulatory treatment as described in the following paragraph.

The Utilities have implemented pension and OPEB tracking mechanisms under which all of their retirement benefit expenses (except for executive life and nonqualified pension plan expenses) determined in accordance with GAAP are recovered over time. Under the tracking mechanisms, any actual costs determined in accordance with GAAP that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will then be amortized over 5 years beginning with the respective utility’s next rate case.

Defined contribution plans information.  For the first three months of 2021 and 2020, the Company’s expenses for its defined contribution plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan were $1.7 million and $1.8 million, respectively, and cash contributions were $1.8 million and $3.2 million, respectively. For the first three months of 2021 and 2020, the Utilities’ expenses and cash contributions for its defined contribution plan under the HEIRSP were $0.8 million and $0.7 million, respectively

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Share-based compensation

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-based compensation

Share-based compensation

Under the 2010 Equity and Incentive Plan, as amended, HEI can issue shares of common stock as incentive compensation to selected employees in the form of stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares and other share-based and cash-based awards. The 2010 Equity and Incentive Plan (original EIP) was amended and restated effective March 1, 2014 (EIP) and an additional 1.5 million shares were added to the shares available for issuance under these programs.

As of March 31, 2021, approximately 2.9 million shares remained available for future issuance under the terms of the EIP, assuming recycling of shares withheld to satisfy minimum statutory tax liabilities relating to EIP awards, including an estimated 0.9 million shares that could be issued upon the vesting of outstanding restricted stock units and the achievement of performance goals for awards outstanding under long-term incentive plans (assuming that such performance goals are achieved at maximum levels).

Under the 2011 Nonemployee Director Stock Plan (2011 Director Plan), HEI can issue shares of common stock as compensation to nonemployee directors of HEI, Hawaiian Electric and ASB. In June 2019, an additional 300,000 shares were made available for issuance under the 2011 Director Plan. As of March 31, 2021, there were 274,163 shares remaining available for future issuance under the 2011 Director Plan.

Share-based compensation expense and the related income tax benefit were as follows:

	Three months ended March 31
(in millions)	2021		2020
HEI consolidated
Share-based compensation expense 1	$	2.6	$	1.7
Income tax benefit	0.4		0.3
Hawaiian Electric consolidated
Share-based compensation expense 1	1.1		0.8
Income tax benefit	0.3		0.1

1    For the three months ended March 31, 2021 and 2020, the Company has not capitalized any share-based compensation.

Stock awards. HEI granted HEI common stock to nonemployee directors under the 2011 Director Plan as follows:

	Three months ended March 31
(dollars in thousands)	2021		2020
Shares granted	—		468
Fair value	$	—	$	23
Income tax benefit	—		6

The number of shares issued to each nonemployee director of HEI, Hawaiian Electric and ASB is determined based on the closing price of HEI common stock on the grant date.

Restricted stock units.  Information about HEI’s grants of restricted stock units was as follows:

	Three months ended March 31
	2021				2020
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	193,939		$	40.89	207,641		$	35.36
Granted	127,598		33.98		77,679		48.11
Vested	(78,988)		38.51		(77,719)		34.19
Forfeited	(6,358)		42.20		(4,160)		35.81
Outstanding, end of period	236,191		$	37.91	203,441		$	40.67
Total weighted-average grant-date fair value of shares granted (in millions)	$	4.3			$	3.7

(1)    Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.

For the three months ended March 31, 2021 and 2020, total restricted stock units and related dividends that vested had a fair value of $3.0 million and $4.2 million, respectively, and the related tax benefits were $0.6 million and $0.7 million, respectively.

As of March 31, 2021, there was $8.3 million of total unrecognized compensation cost related to the nonvested restricted stock units. The cost is expected to be recognized over a weighted-average period of 2.6 years.

Long-term incentive plan payable in stock.  The 2019-2021, 2020-2022 and 2021-2023 long-term incentive plans (LTIP) provide for performance awards under the EIP of shares of HEI common stock based on the satisfaction of performance goals, including a market condition goal. The number of shares of HEI common stock that may be awarded is fixed on the date the grants are made, subject to the achievement of specified performance levels and calculated dividend equivalents. The potential payout varies from 0% to 200% of the number of target shares, depending on the achievement of the goals. The market condition goal is based on HEI’s total shareholder return (TSR) compared to the Edison Electric Institute Index over the relevant three-year period. The other performance condition goals relate to EPS growth, return on average common equity (ROACE), renewable portfolio standards, Hawaiian Electric’s net income growth, ASB’s efficiency ratio and strategic initiatives and Pacific Current’s EBITDA growth and return on average invested capital.

LTIP linked to TSR.  Information about HEI’s LTIP grants linked to TSR was as follows:

	Three months ended March 31
	2021				2020
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	89,222		$	42.10	96,402		$	39.62
Granted	44,210		41.12		24,630		48.62
Vested (issued or unissued and cancelled)	(32,355)		38.20		(29,409)		39.51
Forfeited	(1,024)		45.89		(1,007)		41.72
Outstanding, end of period	100,053		$	42.89	90,616		$	42.08
Total weighted-average grant-date fair value of shares granted (in millions)	$	1.8			$	1.2

(1)    Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.

The grant date fair values of the shares were determined using a Monte Carlo simulation model utilizing actual information for the common shares of HEI and its peers for the period from the beginning of the performance period to the grant date and estimated future stock volatility and dividends of HEI and its peers over the remaining three-year performance period. The expected stock volatility assumptions for HEI and its peer group were based on the three-year historic stock volatility, and the annual dividend yield assumptions were based on dividend yields calculated on the basis of daily stock prices over the same three-year historical period.

The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TSR and the resulting fair value of LTIP awards granted:

	2021		2020
Risk-free interest rate	0.19	%	1.39	%
Expected life in years	3		3
Expected volatility	29.9	%	13.1	%
Range of expected volatility for Peer Group	25.6% to 102.9%		13.6% to 95.4%
Grant date fair value (per share)	$41.12		$48.62

For the three months ended March 31, 2021 and 2020, total vested LTIP awards linked to TSR and related dividends had a fair value of $0.8 million and $2.6 million, respectively, and the related tax benefits were $0.2 million and $0.4 million, respectively.

As of March 31, 2021, there was $2.6 million of total unrecognized compensation cost related to the nonvested performance awards payable in shares linked to TSR. The cost is expected to be recognized over a weighted-average period of 1.9 years.

LTIP awards linked to other performance conditions.  Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows:

	Three months ended March 31
	2021				2020
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	220,715		$	41.03	403,768		$	35.15
Granted	176,844		33.98		98,522		48.10
Vested	(43,155)		34.12		(135,804)		33.48
Increase above target (cancelled)	(14,604)		43.90		(26,111)		34.13
Forfeited	(4,098)		44.36		(4,031)		39.67
Outstanding, end of period	335,702		$	38.04	336,344		$	39.64
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions)	$	6.0			$	4.7

(1)    Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.

For the three months ended March 31, 2021 and 2020, total vested LTIP awards linked to other performance conditions and related dividends had a fair value of $1.7 million and $7.6 million, respectively, and the related tax benefits were $0.4 million and $1.2 million, respectively.

As of March 31, 2021, there was $8.0 million of total unrecognized compensation cost related to the nonvested shares linked to performance conditions other than TSR. The cost is expected to be recognized over a weighted-average period of 2.0 years.

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Income taxes

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

The Company’s and the Utilities’ effective tax rates (combined federal and state income tax rates) were 19% and 20%, respectively, for the three months ended March 31, 2021. These rates differed from the combined statutory rates, due primarily to the Utilities’ amortization of excess deferred income taxes related to the provision in the Tax Act that lowered the federal income tax rate from 35% to 21%, the tax benefits derived from the low income housing tax credit investments and the non-taxability of the bank-owned life insurance income. The Company’s and the Utilities’ effective tax rates were 15% and 18%, respectively, for the three months ended March 31, 2020.

In August 2020, the Internal Revenue Service notified the Company that its 2017 and 2018 income tax returns would be examined. The Company was previously audited every year through 2011, at which time the IRS changed their internal policies regarding audit frequency. The Company has received several initial requests for general tax return information and has responded or is in the process of responding to such requests.

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Cash flows

3 Months Ended

Mar. 31, 2021

Supplemental Cash Flow Elements [Abstract]

Cash flows

Cash flows

Three months ended March 31	2021		2020
(in millions)
Supplemental disclosures of cash flow information
HEI consolidated
Interest paid to non-affiliates, net of amounts capitalized	$	15	$	18
Income taxes paid (including refundable credits)	—		—
Income taxes refunded (including refundable credits)	—		—
Hawaiian Electric consolidated
Interest paid to non-affiliates	9		9
Income taxes paid (including refundable credits)	—		—
Income taxes refunded (including refundable credits)	—		—
Supplemental disclosures of noncash activities
HEI consolidated
Property, plant and equipment unpaid invoices and accruals for capital expenditures, balance, end of period (investing)	28		32
Reduction of long-term debt from funds previously transferred for repayment (financing)	—		82
Right-of-use assets obtained in exchange for operating lease obligations (investing)	28		19
Common stock issued (gross) for director and executive/management compensation (financing)1	6		14
Hawaiian Electric consolidated
Electric utility property, plant and equipment unpaid invoices and accruals for capital expenditures, balance, end of period (investing)	24		27
Reduction of long-term debt from funds previously transferred for repayment (financing)	—		82
Right-of-use assets obtained in exchange for operating lease obligations (investing)	28		16

1 The amounts shown represent the market value of common stock issued for director and executive/management compensation and withheld to satisfy statutory tax liabilities.

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Fair value measurements

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair value measurements

Fair value measurements

Fair value measurement and disclosure valuation methodology. The following are descriptions of the valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial instruments not carried at fair value:

Short-term borrowings—other than bank.  The carrying amount of short-term borrowings approximated fair value because of the short maturity of these instruments.

Investment securities. The fair value of ASB’s investment securities is determined quarterly through pricing obtained from independent third-party pricing services or from brokers not affiliated with the trade. Non-binding broker quotes are infrequent and generally occur for new securities that are settled close to the month-end pricing date. The third-party pricing vendors ASB uses for pricing its securities are reputable firms that provide pricing services on a global basis and have processes in place to ensure quality and control. The third-party pricing services use a variety of methods to determine the fair value of securities that fall under Level 2 of ASB’s fair value measurement hierarchy. Among the considerations are quoted prices for similar securities in an active market, yield spreads for similar trades, adjustments for liquidity, size, collateral characteristics, historic and generic prepayment speeds, and other observable market factors.

To enhance the robustness of the pricing process, ASB will on a quarterly basis compare its standard third-party vendor’s price with that of another third-party vendor. If the prices are within an acceptable tolerance range, the price of the standard vendor will be accepted. If the variance is beyond the tolerance range, an evaluation will be conducted by ASB and a challenge to the price may be made. Fair value in such cases will be based on the value that best reflects the data and observable characteristics of the security. In all cases, the fair value used will have been independently determined by a third-party pricing vendor or non-affiliated broker.

The fair value of the mortgage revenue bonds is estimated using a discounted cash flow model to calculate the present value of future principal and interest payments and, therefore is classified within Level 3 of the valuation hierarchy.

Loans held for sale. Residential and commercial loans are carried at the lower of cost or market and are valued using market observable pricing inputs, which are derived from third party loan sales and, therefore, are classified within Level 2 of the valuation hierarchy.

Loans held for investment. Fair value of loans held for investment is derived using a discounted cash flow approach which includes an evaluation of the underlying loan characteristics. The valuation model uses loan characteristics which includes product type, maturity dates and the underlying interest rate of the portfolio. This information is input into the valuation models along with various forecast valuation assumptions including prepayment forecasts, to determine the discount rate. These assumptions are derived from internal and third party sources. Since the valuation is derived from model-based techniques, ASB includes loans held for investment within Level 3 of the valuation hierarchy.

Collateral dependent loans. Collateral dependent loans have been adjusted to fair value. When a loan is identified as collateral dependent, the Company measures the impairment using the current fair value of the collateral, less selling costs. Depending on the characteristics of a loan, the fair value of collateral is generally estimated by obtaining external appraisals, but in some cases, the value of the collateral may be estimated as having little or no value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. If it is determined that the value of the collateral dependent loan is less than its recorded investment, the Company recognizes this impairment and adjusts the carrying value of the loan to fair value through the allowance for credit losses.

Real estate acquired in settlement of loans. Foreclosed assets are carried at fair value (less estimated costs to sell) and are generally based upon appraisals or independent market prices that are periodically updated subsequent to classification as real estate owned. Such adjustments typically result in a Level 3 classification of the inputs for determining fair value. ASB estimates the fair value of collateral-dependent loans and real estate owned using the sales comparison approach.

Mortgage servicing rights. MSRs are capitalized at fair value based on market data at the time of sale and accounted for in subsequent periods at the lower of amortized cost or fair value. MSRs are evaluated for impairment at each reporting date. ASB's MSRs are stratified based on predominant risk characteristics of the underlying loans including loan type and note rate. For each stratum, fair value is calculated by discounting expected net income streams using discount rates that reflect industry pricing for similar assets. Expected net income streams are estimated based on industry assumptions regarding prepayment expectations and income and expenses associated with servicing residential mortgage loans for others. Impairment is recognized through a valuation allowance for each stratum when the carrying amount exceeds fair value, with any associated provision recorded as a component of loan servicing fees included in "Revenues - bank" in the consolidated statements of income. A direct write-down is recorded when the recoverability of the valuation allowance is deemed to be unrecoverable. ASB compares the fair value of MSRs to an estimated value calculated by an independent third-party. The third-party relies on both published and unpublished sources of market related assumptions and its own experience and expertise to arrive at a value. ASB uses the third-party value only to assess the reasonableness of its own estimate.

Time deposits. The fair value of fixed-maturity certificates of deposit was estimated by discounting the future cash flows using the rates currently offered for FHLB advances of similar remaining maturities. Deposit liabilities are classified in Level 2 of the valuation hierarchy.

Other borrowings. For advances and repurchase agreements, fair value is estimated using quantitative discounted cash flow models that require the use of interest rate inputs that are currently offered for advances and repurchase agreements of similar remaining maturities. The majority of market inputs are actively quoted and can be validated through external sources, including broker market transactions and third party pricing services.

Long-term debt—other than bank.  Fair value of fixed-rate long-term debt—other than bank was obtained from third-party financial services providers based on the current rates offered for debt of the same or similar remaining maturities and from discounting the future cash flows using the current rates offered for debt of the same or similar risks, terms, and remaining maturities. The carrying amount of floating rate long-term debt—other than bank approximated fair value because of the short-term interest reset periods. Long-term debt—other than bank is classified in Level 2 of the valuation hierarchy.

Interest rate lock commitments (IRLCs). The estimated fair value of commitments to originate residential mortgage loans for sale is based on quoted prices for similar loans in active markets. IRLCs are classified as Level 2 measurements.

Forward sales commitments. To be announced (TBA) mortgage-backed securities forward commitments are classified as Level 1, and consist of publicly-traded debt securities for which identical fair values can be obtained through quoted market prices in active exchange markets. The fair values of ASB’s best efforts and mandatory delivery loan sale commitments are determined using quoted prices in the market place that are observable and are classified as Level 2 measurements.

The following table presents the carrying or notional amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments.

			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
March 31, 2021
Financial assets
HEI consolidated
Available-for-sale investment securities	$	2,305,257	$	—	$	2,289,830	$	15,427	$	2,305,257
Held-to-maturity investment securities	295,046		—		285,599		—		285,599
Loans, net	5,241,925		—		23,637		5,352,496		5,376,133
Mortgage servicing rights	10,685		—		—		13,659		13,659
Derivative assets	103,077		340		745		—		1,085
Financial liabilities
HEI consolidated
Deposit liabilities	514,303		—		516,524		—		516,524
Short-term borrowings—other than bank	100,242		—		100,242		—		100,242
Other bank borrowings	102,685		—		102,684		—		102,684
Long-term debt, net—other than bank	2,229,738		—		2,492,539		—		2,492,539
Derivative liabilities	32,739		—		2,834		—		2,834
Hawaiian Electric consolidated
Long-term debt, net	1,675,863		—		1,904,613		—		1,904,613
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
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

Fair value measurements on a recurring basis.  Assets and liabilities measured at fair value on a recurring basis were as follows:

	March 31, 2021						December 31, 2020
	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	$	—	$	2,201,352	$	—	$	—	$	1,849,559	$	—
U.S. Treasury and federal agency obligations	—		57,647		—		—		62,322		—
Corporate bonds	—		30,831		—		—		31,351		—
Mortgage revenue bonds	—		—		15,427		—		—		27,185
	$	—	$	2,289,830	$	15,427	$	—	$	1,943,232	$	27,185
Derivative assets
Interest rate lock commitments (bank segment)1	$	—	$	456	$	—	$	—	$	4,536	$	—
Forward commitments (bank segment)1	340		—		—		—		—		—
Interest rate swap (Other segment)2	—		289		—		—		—		—
	$	340	$	745	$	—	$	—	$	4,536	$	—
Derivative liabilities
Interest rate lock commitments (bank segment)1	$	—	$	18	$	—	$	—	$	—	$	—
Forward commitments (bank segment)1	—		—		—		500		—		—
Interest rate swap (Other segment)2	—		2,816		—		—		4,530		—
	$	—	$	2,834	$	—	$	500	$	4,530	$	—

1     Derivatives are carried at fair value in other assets or other liabilities in the balance sheets with changes in value included in mortgage banking income.

2     Derivatives are included in other assets and other liabilities in the balance sheets.

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows:

	Three months ended March 31
Mortgage revenue bonds	2021		2020
(in thousands)
Beginning balance	$	27,185	$	28,597
Principal payments received	(11,758)		—
Purchases	—		129
Unrealized gain (loss) included in other comprehensive income	—		—
Ending balance	$	15,427	$	28,726

Mortgage revenue bonds are issued by the Department of Budget and Finance of the State of Hawaii. The Company estimates the fair value by using a discounted cash flow model to calculate the present value of estimated future principal and interest payments. The unobservable input used in the fair value measurement is the weighted average discount rate. As of March 31, 2021, the weighted average discount rate was 2.07%, which was derived by incorporating a credit spread over the one month LIBOR rate. Significant increases (decreases) in the weighted average discount rate could result in a significantly lower (higher) fair value measurement.

Fair value measurements on a nonrecurring basis.  Certain assets and liabilities are measured at fair value on a nonrecurring basis and therefore are not included in the tables above. These measurements primarily result from assets carried at the lower of cost or fair value or from impairment of individual assets. The carrying value of assets measured at fair value on a nonrecurring basis were as follows:

			Fair value measurements using
(in thousands)	Balance		Level 1		Level 2		Level 3
March 31, 2021
Loans	$	69	$	—	$	—	$	69
Mortgage servicing rights	61		—		—		61
December 31, 2020
Loans	387		—		—		387
Mortgage servicing rights	3,001		—		—		3,001

For the three months ended March 31, 2021 and 2020, there were no adjustments to fair value for ASB’s loans held for sale.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis:

					Significant unobservable  input value (1)
($ in thousands)	Fair value		Valuation technique	Significant unobservable input	Range	Weighted Average
March 31, 2021
Home equity lines of credit	$	69	Fair value of collateral	Appraised value less selling cost	N/A (2)	N/A (2)
Mortgage servicing rights	61		Discounted cash flow	Prepayment speed	17% - 24%	17	%
				Discount rate		9.3	%
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	%

(1) Represents percent of outstanding principal balance.

(2) N/A - Not applicable. There is one asset in each fair value measurement type.

Significant increases (decreases) in any of those inputs in isolation would result in significantly higher (lower) fair value measurements.

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Basis of presentation (Policies)

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information, the instructions to SEC Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the unaudited condensed consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates.

Recent accounting pronouncements

Recent accounting pronouncements.Income Taxes. In December 2019, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which removes specific exceptions to the general principles in Topic 740, improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP under certain situations. ASU 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company adopted the ASU as of January 1, 2021 with no material impact on its consolidated financial statements and related disclosures.

Troubled debt restructurings

Troubled debt restructurings.  A loan modification is deemed to be a TDR when the borrower is determined to be experiencing financial difficulties and ASB grants a concession it would not otherwise consider.

The allowance for credit losses on TDR loans that do not share risk characteristics are individually evaluated based on the present value of expected future cash flows discounted at the loan’s effective original contractual rate or based on the fair value of collateral less cost to sell. The financial impact of the estimated loss is an increase to the allowance associated with the modified loan. When available information confirms that specific loans or portions thereof are uncollectible (confirmed losses), these amounts are charged off against the allowance for credit losses.

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Segment financial information (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Schedule of segment financial information

(in thousands)	Electric utility		Bank		Other		Total
Three months ended March 31, 2021
Revenues from external customers	$	564,855	$	77,131	$	960	$	642,946
Intersegment revenues (eliminations)	9		—		(9)		—
Revenues	$	564,864	$	77,131	$	951	$	642,946
Income (loss) before income taxes	$	55,090	$	37,102	$	(11,996)	$	80,196
Income taxes (benefit)	11,233		7,546		(3,414)		15,365
Net income (loss)	43,857		29,556		(8,582)		64,831
Preferred stock dividends of subsidiaries	499		—		(26)		473
Net income (loss) for common stock	$	43,358	$	29,556	$	(8,556)	$	64,358
Total assets (at March 31, 2021)	$	6,494,908	$	8,718,024	$	145,741	$	15,358,673
Three months ended March 31, 2020
Revenues from external customers	$	597,430	$	79,738	$	18	$	677,186
Intersegment revenues (eliminations)	12		—		(12)		—
Revenues	$	597,442	$	79,738	$	6	$	677,186
Income (loss) before income taxes	$	29,686	$	18,969	$	(8,959)	$	39,696
Income taxes (benefit)	5,282		3,208		(2,687)		5,803
Net income (loss)	24,404		15,761		(6,272)		33,893
Preferred stock dividends of subsidiaries	499		—		(26)		473
Net income (loss) for common stock	$	23,905	$	15,761	$	(6,246)	$	33,420
Total assets (at December 31, 2020)	$	6,457,373	$	8,396,533	$	150,101	$	15,004,007

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Electric utility segment (Tables)

3 Months Ended

Mar. 31, 2021

Electric utility subsidiary [Abstract]

Schedule of purchases from all IPPs

Purchases from all IPPs were as follows:

	Three months ended March 31
(in millions)	2021		2020
Kalaeloa	$	37	$	38
AES Hawaii	30		31
HPOWER	17		17
Hamakua Energy	11		13
Puna Geothermal Venture	4		—
Wind IPPs	29		28
Solar IPPs	12		11
Other IPPs 1	2		2
Total IPPs	$	142	$	140

1Includes hydro power and other PPAs

Schedule of net annual incremental amounts proposed to be collected (refunded)

The Utilities filed annual decoupling filings on March 31, 2021, which are subject to PUC approval. The net annual incremental amounts proposed to be collected (refunded) from June 1, 2021 through December 31, 2021 are as follows:

(in millions)	Hawaiian Electric		Hawaii Electric Light		Maui Electric		Total
2021 Annual incremental RAM adjusted revenues and ARA revenues	$	(13.8)	$	(2.0)	$	(5.9)	$	(21.7)
Annual change in accrued RBA balance as of December 31, 2020 (and associated revenue taxes)	10.4		5.7		8.9		25.0
Incremental Performance Incentive Mechanisms (net)	—		0.2		0.5		0.7
Incremental MPIR/EPRM Revenue Adjustment	12.6		0.1		0.1		12.8
Incremental Affiliate Transaction Refund/PUC Ordered Adjustment	—		N/A		2.0		2.0
Net annual incremental amount to be collected under the tariffs	$	9.1	$	4.0	$	5.6	$	18.7

Schedule of condensed consolidating statements of income (loss)

Condensed Consolidating Statement of Income

Three months ended March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	400,554	85,149	79,181	—	(20)	$	564,864
Expenses
Fuel oil	88,728		16,485	22,214	—	—	127,427
Purchased power	108,604		21,597	12,095	—	—	142,296
Other operation and maintenance	77,335		17,912	19,323	—	—	114,570
Depreciation	38,914		10,048	8,393	—	—	57,355
Taxes, other than income taxes	38,627		7,993	7,482	—	—	54,102
Total expenses	352,208		74,035	69,507	—	—	495,750
Operating income	48,346		11,114	9,674	—	(20)	69,114
Allowance for equity funds used during construction	1,748		132	311	—	—	2,191
Equity in earnings of subsidiaries	12,510		—	—	—	(12,510)	—
Retirement defined benefits expense—other than service costs	886		168	(33)	—	—	1,021
Interest expense and other charges, net	(12,832)		(2,581)	(2,590)	—	20	(17,983)
Allowance for borrowed funds used during construction	591		44	112	—	—	747
Income before income taxes	51,249		8,877	7,474	—	(12,510)	55,090
Income taxes	7,621		2,051	1,561	—	—	11,233
Net income	43,628		6,826	5,913	—	(12,510)	43,857
Preferred stock dividends of subsidiaries	—		134	95	—	—	229
Net income attributable to Hawaiian Electric	43,628		6,692	5,818	—	(12,510)	43,628
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	43,358	6,692	5,818	—	(12,510)	$	43,358

Condensed Consolidating Statement of Income

Three months ended March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	421,166	89,293	87,198	—	(215)	$	597,442
Expenses
Fuel oil	120,535		22,432	30,254	—	—	173,221
Purchased power	107,951		19,521	12,344	—	—	139,816
Other operation and maintenance	85,637		19,104	22,806	—	—	127,547
Depreciation	38,011		9,760	8,079	—	—	55,850
Taxes, other than income taxes	40,501		8,342	8,207	—	—	57,050
Total expenses	392,635		79,159	81,690	—	—	553,484
Operating income	28,531		10,134	5,508	—	(215)	43,958
Allowance for equity funds used during construction	1,743		119	153	—	—	2,015
Equity in earnings of subsidiaries	8,804		—	—	—	(8,804)	—
Retirement defined benefits expense—other than service costs	(546)		194	(29)	—	—	(381)
Interest expense and other charges, net	(12,002)		(2,484)	(2,323)	—	215	(16,594)
Allowance for borrowed funds used during construction	602		36	50	—	—	688
Income before income taxes	27,132		7,999	3,359	—	(8,804)	29,686
Income taxes	2,957		1,798	527			5,282
Net income	24,175		6,201	2,832	—	(8,804)	24,404
Preferred stock dividends of subsidiaries	—		134	95	—		229
Net income attributable to Hawaiian Electric	24,175		6,067	2,737	—	(8,804)	24,175
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	23,905	6,067	2,737	—	(8,804)	$	23,905

Statements of Income and Comprehensive Income Data

	Three months ended March 31
(in thousands)	2021		2020
Interest and dividend income
Interest and fees on loans	$	49,947	$	55,545
Interest and dividends on investment securities	8,673		9,430
Total interest and dividend income	58,620		64,975
Interest expense
Interest on deposit liabilities	1,462		3,587
Interest on other borrowings	27		313
Total interest expense	1,489		3,900
Net interest income	57,131		61,075
Provision for credit losses	(8,435)		10,401
Net interest income after provision for credit losses	65,566		50,674
Noninterest income
Fees from other financial services	5,073		4,571
Fee income on deposit liabilities	3,863		5,113
Fee income on other financial products	2,442		1,872
Bank-owned life insurance	2,561		794
Mortgage banking income	4,300		2,000
Gain on sale of investment securities, net	528		—
Other income, net	272		413
Total noninterest income	19,039		14,763
Noninterest expense
Compensation and employee benefits	28,037		25,777
Occupancy	4,969		5,267
Data processing	4,351		3,837
Services	2,862		2,809
Equipment	2,222		2,339
Office supplies, printing and postage	1,044		1,341
Marketing	648		802
FDIC insurance	816		102
Other expense	2,554		4,194
Total noninterest expense	47,503		46,468
Income before income taxes	37,102		18,969
Income taxes	7,546		3,208
Net income	29,556		15,761
Other comprehensive income (loss), net of taxes	(45,754)		19,847
Comprehensive income (loss)	$	(16,198)	$	35,608

Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*:

	Three months ended March 31
(in thousands)	2021		2020
Interest and dividend income	$	58,620	$	64,975
Noninterest income	19,039		14,763
Less: Gain on sale of investment securities, net	528		—
*Revenues-Bank	77,131		79,738
Total interest expense	1,489		3,900
Provision for credit losses	(8,435)		10,401
Noninterest expense	47,503		46,468
Less: Retirement defined benefits expense (credit)—other than service costs	(1,278)		434
*Expenses-Bank	41,835		60,335
*Operating income-Bank	35,296		19,403
Add back: Retirement defined benefits expense (credit)—other than service costs	(1,278)		434
Add back: Gain on sale of investment securities, net	528		—
Income before income taxes	$	37,102	$	18,969

Schedule of condensed consolidating statement of comprehensive income

Condensed Consolidating Statement of Comprehensive Income

Three months ended March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net income for common stock	$	43,358	6,692	5,818	—	(12,510)	$	43,358
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes	5,845		835	761	—	(1,596)	5,845
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(5,811)		(834)	(761)	—	1,595	(5,811)
Other comprehensive income, net of taxes	34		1	—	—	(1)	34
Comprehensive income attributable to common shareholder	$	43,392	6,693	5,818	—	(12,511)	$	43,392

Condensed Consolidating Statement of Comprehensive Income

Three months ended March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net income for common stock	$	23,905	6,067	2,737	—	(8,804)	$	23,905
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	5,184		748	652	—	(1,400)	5,184
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(5,158)		(747)	(652)	—	1,399	(5,158)
Other comprehensive income, net of taxes	26		1	—	—	(1)	26
Comprehensive income attributable to common shareholder	$	23,931	6,068	2,737	—	(8,805)	$	23,931

Schedule of condensed consolidating balance sheet

Condensed Consolidating Balance Sheet

March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi- diaries	Consoli- dating 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	4,986,417		1,358,367	1,207,095	—	—	7,551,879
Less accumulated depreciation	(1,706,529)		(604,021)	(549,169)	—	—	(2,859,719)
Construction in progress	160,331		13,927	29,730	—	—	203,988
Utility property, plant and equipment, net	3,482,630		773,879	691,250	—	—	4,947,759
Nonutility property, plant and equipment, less accumulated depreciation	5,305		115	1,532	—	—	6,952
Total property, plant and equipment, net	3,487,935		773,994	692,782	—	—	4,954,711
Investment in wholly owned subsidiaries, at equity	631,976		—	—	—	(631,976)	—
Current assets
Cash and cash equivalents	29,727		7,730	14,209	77	—	51,743
Restricted cash	11,506		—	—	—	—	11,506
Customer accounts receivable, net	101,605		21,358	18,686	—	—	141,649
Accrued unbilled revenues, net	72,784		14,911	14,118	—	—	101,813
Other accounts receivable, net	12,967		3,006	3,570	—	(14,470)	5,073
Fuel oil stock, at average cost	51,894		9,981	12,813	—	—	74,688
Materials and supplies, at average cost	40,395		9,873	19,458	—	—	69,726
Prepayments and other	29,769		3,534	3,791	—	(675)	36,419
Regulatory assets	42,852		2,840	8,630	—	—	54,322
Total current assets	393,499		73,233	95,275	77	(15,145)	546,939
Other long-term assets
Operating lease right-of-use assets	123,992		14,198	344	—	—	138,534
Regulatory assets	501,393		111,700	106,011	—	—	719,104
Other	102,767		18,591	20,424	—	(6,162)	135,620
Total other long-term assets	728,152		144,489	126,779	—	(6,162)	993,258
Total assets	$	5,241,562	991,716	914,836	77	(653,283)	$	6,494,908
Capitalization and liabilities
Capitalization
Common stock equity	$	2,157,385	320,494	311,405	77	(631,976)	$	2,157,385
Cumulative preferred stock—not subject to mandatory redemption	22,293		7,000	5,000	—	—	34,293
Long-term debt, net	1,176,229		246,310	253,324	—	—	1,675,863
Total capitalization	3,355,907		573,804	569,729	77	(631,976)	3,867,541
Current liabilities
Current portion of operating lease liabilities	64,423		1,844	34	—	—	66,301
Accounts payable	87,437		16,037	19,725	—	—	123,199
Interest and preferred dividends payable	20,075		3,698	4,400	—	(1)	28,172
Taxes accrued, including revenue taxes	107,552		25,372	22,876	—	(675)	155,125
Regulatory liabilities	17,000		5,901	7,469	—	—	30,370
Other	55,478		11,951	17,189	—	(14,618)	70,000
Total current liabilities	351,965		64,803	71,693	—	(15,294)	473,167
Deferred credits and other liabilities
Operating lease liabilities	71,431		12,353	318	—	—	84,102
Deferred income taxes	282,513		53,582	60,663	—	—	396,758
Regulatory liabilities	658,584		174,820	92,365	—	—	925,769
Unamortized tax credits	81,297		15,126	13,758	—	—	110,181
Defined benefit pension and other postretirement benefit plans liability	373,376		76,357	78,566	—	(6,013)	522,286
Other	66,489		20,871	27,744	—	—	115,104
Total deferred credits and other liabilities	1,533,690		353,109	273,414	—	(6,013)	2,154,200
Total capitalization and liabilities	$	5,241,562	991,716	914,836	77	(653,283)	$	6,494,908

Condensed Consolidating Balance Sheet

December 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi-diaries	Consoli- dating 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)	—
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)	—
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)	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)	$	2,141,918
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)	—
Accounts payable	97,102		19,570	17,177	—	—	133,849
Interest and preferred dividends payable	14,480		3,138	2,790	—	(58)	20,350
Taxes accrued, including revenue taxes	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)	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

Balance Sheets Data

(in thousands)	March 31, 2021				December 31, 2020
Assets
Cash and due from banks			$	113,698			$	178,422
Interest-bearing deposits			110,365				114,304
Cash and cash equivalents			224,063				292,726
Investment securities
Available-for-sale, at fair value			2,305,257				1,970,417
Held-to-maturity, at amortized cost (fair value of $285,599 and $229,963, respectively)			295,046				226,947
Stock in Federal Home Loan Bank, at cost			10,000				8,680
Loans held for investment			5,310,081				5,333,843
Allowance for credit losses			(91,793)				(101,201)
Net loans			5,218,288				5,232,642
Loans held for sale, at lower of cost or fair value			23,637				28,275
Other			559,543				554,656
Goodwill			82,190				82,190
Total assets			$	8,718,024			$	8,396,533
Liabilities and shareholder’s equity
Deposit liabilities—noninterest-bearing			$	2,833,844			$	2,598,500
Deposit liabilities—interest-bearing			4,911,450				4,788,457
Other borrowings			102,685				89,670
Other			154,418				183,731
Total liabilities			8,002,397				7,660,358
Commitments and contingencies
Common stock			1				1
Additional paid-in capital			352,408				351,758
Retained earnings			394,026				369,470
Accumulated other comprehensive income (loss), net of taxes
Net unrealized gains (losses) on securities	$	(25,791)			$	19,986
Retirement benefit plans	(5,017)		(30,808)		(5,040)		14,946
Total shareholder’s equity			715,627				736,175
Total liabilities and shareholder’s equity			$	8,718,024			8,396,533
Other assets
Bank-owned life insurance			$	162,821			$	163,265
Premises and equipment, net			206,247				206,134
Accrued interest receivable			24,381				24,616
Mortgage-servicing rights			10,685				10,020
Low-income housing investments			80,791				83,435
Other			74,618				67,186
			$	559,543			$	554,656
Other liabilities
Accrued expenses			$	55,073			$	62,694
Federal and state income taxes payable			1,709				6,582
Cashier’s checks			29,363				38,011
Advance payments by borrowers			5,863				10,207
Other			62,410				66,237
			$	154,418			$	183,731

Schedule of condensed consolidating statement of changes in common stock equity

Condensed Consolidating Statement of Changes in Common Stock Equity

Three months ended March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Balance, December 31, 2020	$	2,141,918	317,451	309,363	77	(626,891)	$	2,141,918
Net income for common stock	43,358		6,692	5,818	—	(12,510)	43,358
Other comprehensive income, net of taxes	34		1	—	—	(1)	34
Common stock dividends	(27,925)		(3,650)	(3,776)	—	7,426	(27,925)
Balance, March 31, 2021	$	2,157,385	320,494	311,405	77	(631,976)	$	2,157,385

Condensed Consolidating Statement of Changes in Common Stock Equity

Three months ended March 31, 2020  

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Balance, December 31, 2019	$	2,047,352	298,998	292,870	101	(591,969)	$	2,047,352
Net income for common stock	23,905		6,067	2,737	—	(8,804)	23,905
Other comprehensive income, net of taxes	26		1	—	—	(1)	26
Common stock dividends	(26,784)		(4,080)	(3,596)	—	7,676	(26,784)
Common stock issuance expenses	—		—	(1)	—	1	—
Balance, March 31, 2020	$	2,044,499	300,986	292,010	101	(593,097)	$	2,044,499

Schedule of condensed consolidating statement of cash flows

Condensed Consolidating Statement of Cash Flows

Three months ended March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net cash provided by operating activities	$	18,764	9,635	10,988	—	(7,426)	$	31,961
Cash flows from investing activities
Capital expenditures	(45,293)		(12,728)	(12,340)	—	—	(70,361)
Advances from affiliates	26,700		—	—	—	(26,700)	—
Other	1,182		372	309	—	—	1,863
Net cash used in investing activities	(17,411)		(12,356)	(12,031)	—	(26,700)	(68,498)
Cash flows from financing activities
Common stock dividends	(27,925)		(3,650)	(3,776)	—	7,426	(27,925)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(270)		(134)	(95)	—	—	(499)
Repayment of short-term debt	(50,000)		—	—	—	—	(50,000)
Proceeds from issuance of long-term debt	60,000		30,000	25,000	—	—	115,000
Net decrease in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	—		(18,800)	(7,900)	—	26,700	—
Other	(96)		(11)	(9)	—	—	(116)
Net cash provided by (used in) financing activities	(18,291)		7,405	13,220	—	34,126	36,460
Net increase (decrease) in cash and cash equivalents	(16,938)		4,684	12,177	—	—	(77)
Cash, cash equivalents and restricted cash, beginning of period	58,171		3,046	2,032	77	—	63,326
Cash, cash equivalents and restricted cash, end of period	41,233		7,730	14,209	77	—	63,249
Less: Restricted cash	(11,506)		—	—	—	—	(11,506)
Cash and cash equivalents, end of period	$	29,727	7,730	14,209	77	—	$	51,743

Condensed Consolidating Statement of Cash Flows

Three months ended March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net cash provided by operating activities	$	29,004	9,478	7,931	—	(7,272)	$	39,141
Cash flows from investing activities
Capital expenditures	(83,191)		(18,181)	(17,772)	—	—	(119,144)
Advances from (to) affiliates	(17,000)		8,000	—	—	9,000	—
Other	2,752		64	301	—	(404)	2,713
Net cash used in investing activities	(97,439)		(10,117)	(17,471)	—	8,596	(116,431)
Cash flows from financing activities
Common stock dividends	(26,784)		(4,080)	(3,596)	—	7,676	(26,784)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(270)		(134)	(95)	—	—	(499)
Proceeds from issuance of short-term debt	50,000		—	—	—	—	50,000
Proceeds from issuance of long-term debt	95,000		—	—	—	—	95,000
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	(46,987)		2,500	14,500	—	(9,000)	(38,987)
Other	(21)		(1)	(1)	—	—	(23)
Net cash provided by (used in) financing activities	70,938		(1,715)	10,808	—	(1,324)	78,707
Net increase (decrease) in cash and cash equivalents	2,503		(2,354)	1,268	—	—	1,417
Cash, cash equivalents and restricted cash, beginning of period	32,988		7,008	1,797	101	—	41,894
Cash, cash equivalents and restricted cash, end of period	35,491		4,654	3,065	101	—	43,311
Less: Restricted cash	(30,902)		—	—	—	—	(30,902)
Cash and cash equivalents, end of period	$	4,589	4,654	3,065	101	—	$	12,409

XML

Bank segment (Tables)

3 Months Ended

Mar. 31, 2021

Bank Subsidiary [Abstract]

Schedule of statements of income data

Condensed Consolidating Statement of Income

Three months ended March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	400,554	85,149	79,181	—	(20)	$	564,864
Expenses
Fuel oil	88,728		16,485	22,214	—	—	127,427
Purchased power	108,604		21,597	12,095	—	—	142,296
Other operation and maintenance	77,335		17,912	19,323	—	—	114,570
Depreciation	38,914		10,048	8,393	—	—	57,355
Taxes, other than income taxes	38,627		7,993	7,482	—	—	54,102
Total expenses	352,208		74,035	69,507	—	—	495,750
Operating income	48,346		11,114	9,674	—	(20)	69,114
Allowance for equity funds used during construction	1,748		132	311	—	—	2,191
Equity in earnings of subsidiaries	12,510		—	—	—	(12,510)	—
Retirement defined benefits expense—other than service costs	886		168	(33)	—	—	1,021
Interest expense and other charges, net	(12,832)		(2,581)	(2,590)	—	20	(17,983)
Allowance for borrowed funds used during construction	591		44	112	—	—	747
Income before income taxes	51,249		8,877	7,474	—	(12,510)	55,090
Income taxes	7,621		2,051	1,561	—	—	11,233
Net income	43,628		6,826	5,913	—	(12,510)	43,857
Preferred stock dividends of subsidiaries	—		134	95	—	—	229
Net income attributable to Hawaiian Electric	43,628		6,692	5,818	—	(12,510)	43,628
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	43,358	6,692	5,818	—	(12,510)	$	43,358

Condensed Consolidating Statement of Income

Three months ended March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	421,166	89,293	87,198	—	(215)	$	597,442
Expenses
Fuel oil	120,535		22,432	30,254	—	—	173,221
Purchased power	107,951		19,521	12,344	—	—	139,816
Other operation and maintenance	85,637		19,104	22,806	—	—	127,547
Depreciation	38,011		9,760	8,079	—	—	55,850
Taxes, other than income taxes	40,501		8,342	8,207	—	—	57,050
Total expenses	392,635		79,159	81,690	—	—	553,484
Operating income	28,531		10,134	5,508	—	(215)	43,958
Allowance for equity funds used during construction	1,743		119	153	—	—	2,015
Equity in earnings of subsidiaries	8,804		—	—	—	(8,804)	—
Retirement defined benefits expense—other than service costs	(546)		194	(29)	—	—	(381)
Interest expense and other charges, net	(12,002)		(2,484)	(2,323)	—	215	(16,594)
Allowance for borrowed funds used during construction	602		36	50	—	—	688
Income before income taxes	27,132		7,999	3,359	—	(8,804)	29,686
Income taxes	2,957		1,798	527			5,282
Net income	24,175		6,201	2,832	—	(8,804)	24,404
Preferred stock dividends of subsidiaries	—		134	95	—		229
Net income attributable to Hawaiian Electric	24,175		6,067	2,737	—	(8,804)	24,175
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	23,905	6,067	2,737	—	(8,804)	$	23,905

Statements of Income and Comprehensive Income Data

	Three months ended March 31
(in thousands)	2021		2020
Interest and dividend income
Interest and fees on loans	$	49,947	$	55,545
Interest and dividends on investment securities	8,673		9,430
Total interest and dividend income	58,620		64,975
Interest expense
Interest on deposit liabilities	1,462		3,587
Interest on other borrowings	27		313
Total interest expense	1,489		3,900
Net interest income	57,131		61,075
Provision for credit losses	(8,435)		10,401
Net interest income after provision for credit losses	65,566		50,674
Noninterest income
Fees from other financial services	5,073		4,571
Fee income on deposit liabilities	3,863		5,113
Fee income on other financial products	2,442		1,872
Bank-owned life insurance	2,561		794
Mortgage banking income	4,300		2,000
Gain on sale of investment securities, net	528		—
Other income, net	272		413
Total noninterest income	19,039		14,763
Noninterest expense
Compensation and employee benefits	28,037		25,777
Occupancy	4,969		5,267
Data processing	4,351		3,837
Services	2,862		2,809
Equipment	2,222		2,339
Office supplies, printing and postage	1,044		1,341
Marketing	648		802
FDIC insurance	816		102
Other expense	2,554		4,194
Total noninterest expense	47,503		46,468
Income before income taxes	37,102		18,969
Income taxes	7,546		3,208
Net income	29,556		15,761
Other comprehensive income (loss), net of taxes	(45,754)		19,847
Comprehensive income (loss)	$	(16,198)	$	35,608

Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*:

	Three months ended March 31
(in thousands)	2021		2020
Interest and dividend income	$	58,620	$	64,975
Noninterest income	19,039		14,763
Less: Gain on sale of investment securities, net	528		—
*Revenues-Bank	77,131		79,738
Total interest expense	1,489		3,900
Provision for credit losses	(8,435)		10,401
Noninterest expense	47,503		46,468
Less: Retirement defined benefits expense (credit)—other than service costs	(1,278)		434
*Expenses-Bank	41,835		60,335
*Operating income-Bank	35,296		19,403
Add back: Retirement defined benefits expense (credit)—other than service costs	(1,278)		434
Add back: Gain on sale of investment securities, net	528		—
Income before income taxes	$	37,102	$	18,969

Schedule of statements of comprehensive income data

Statements of Income and Comprehensive Income Data

	Three months ended March 31
(in thousands)	2021		2020
Interest and dividend income
Interest and fees on loans	$	49,947	$	55,545
Interest and dividends on investment securities	8,673		9,430
Total interest and dividend income	58,620		64,975
Interest expense
Interest on deposit liabilities	1,462		3,587
Interest on other borrowings	27		313
Total interest expense	1,489		3,900
Net interest income	57,131		61,075
Provision for credit losses	(8,435)		10,401
Net interest income after provision for credit losses	65,566		50,674
Noninterest income
Fees from other financial services	5,073		4,571
Fee income on deposit liabilities	3,863		5,113
Fee income on other financial products	2,442		1,872
Bank-owned life insurance	2,561		794
Mortgage banking income	4,300		2,000
Gain on sale of investment securities, net	528		—
Other income, net	272		413
Total noninterest income	19,039		14,763
Noninterest expense
Compensation and employee benefits	28,037		25,777
Occupancy	4,969		5,267
Data processing	4,351		3,837
Services	2,862		2,809
Equipment	2,222		2,339
Office supplies, printing and postage	1,044		1,341
Marketing	648		802
FDIC insurance	816		102
Other expense	2,554		4,194
Total noninterest expense	47,503		46,468
Income before income taxes	37,102		18,969
Income taxes	7,546		3,208
Net income	29,556		15,761
Other comprehensive income (loss), net of taxes	(45,754)		19,847
Comprehensive income (loss)	$	(16,198)	$	35,608

Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*:

	Three months ended March 31
(in thousands)	2021		2020
Interest and dividend income	$	58,620	$	64,975
Noninterest income	19,039		14,763
Less: Gain on sale of investment securities, net	528		—
*Revenues-Bank	77,131		79,738
Total interest expense	1,489		3,900
Provision for credit losses	(8,435)		10,401
Noninterest expense	47,503		46,468
Less: Retirement defined benefits expense (credit)—other than service costs	(1,278)		434
*Expenses-Bank	41,835		60,335
*Operating income-Bank	35,296		19,403
Add back: Retirement defined benefits expense (credit)—other than service costs	(1,278)		434
Add back: Gain on sale of investment securities, net	528		—
Income before income taxes	$	37,102	$	18,969

Schedule of balance sheets data

Condensed Consolidating Balance Sheet

March 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi- diaries	Consoli- dating 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	4,986,417		1,358,367	1,207,095	—	—	7,551,879
Less accumulated depreciation	(1,706,529)		(604,021)	(549,169)	—	—	(2,859,719)
Construction in progress	160,331		13,927	29,730	—	—	203,988
Utility property, plant and equipment, net	3,482,630		773,879	691,250	—	—	4,947,759
Nonutility property, plant and equipment, less accumulated depreciation	5,305		115	1,532	—	—	6,952
Total property, plant and equipment, net	3,487,935		773,994	692,782	—	—	4,954,711
Investment in wholly owned subsidiaries, at equity	631,976		—	—	—	(631,976)	—
Current assets
Cash and cash equivalents	29,727		7,730	14,209	77	—	51,743
Restricted cash	11,506		—	—	—	—	11,506
Customer accounts receivable, net	101,605		21,358	18,686	—	—	141,649
Accrued unbilled revenues, net	72,784		14,911	14,118	—	—	101,813
Other accounts receivable, net	12,967		3,006	3,570	—	(14,470)	5,073
Fuel oil stock, at average cost	51,894		9,981	12,813	—	—	74,688
Materials and supplies, at average cost	40,395		9,873	19,458	—	—	69,726
Prepayments and other	29,769		3,534	3,791	—	(675)	36,419
Regulatory assets	42,852		2,840	8,630	—	—	54,322
Total current assets	393,499		73,233	95,275	77	(15,145)	546,939
Other long-term assets
Operating lease right-of-use assets	123,992		14,198	344	—	—	138,534
Regulatory assets	501,393		111,700	106,011	—	—	719,104
Other	102,767		18,591	20,424	—	(6,162)	135,620
Total other long-term assets	728,152		144,489	126,779	—	(6,162)	993,258
Total assets	$	5,241,562	991,716	914,836	77	(653,283)	$	6,494,908
Capitalization and liabilities
Capitalization
Common stock equity	$	2,157,385	320,494	311,405	77	(631,976)	$	2,157,385
Cumulative preferred stock—not subject to mandatory redemption	22,293		7,000	5,000	—	—	34,293
Long-term debt, net	1,176,229		246,310	253,324	—	—	1,675,863
Total capitalization	3,355,907		573,804	569,729	77	(631,976)	3,867,541
Current liabilities
Current portion of operating lease liabilities	64,423		1,844	34	—	—	66,301
Accounts payable	87,437		16,037	19,725	—	—	123,199
Interest and preferred dividends payable	20,075		3,698	4,400	—	(1)	28,172
Taxes accrued, including revenue taxes	107,552		25,372	22,876	—	(675)	155,125
Regulatory liabilities	17,000		5,901	7,469	—	—	30,370
Other	55,478		11,951	17,189	—	(14,618)	70,000
Total current liabilities	351,965		64,803	71,693	—	(15,294)	473,167
Deferred credits and other liabilities
Operating lease liabilities	71,431		12,353	318	—	—	84,102
Deferred income taxes	282,513		53,582	60,663	—	—	396,758
Regulatory liabilities	658,584		174,820	92,365	—	—	925,769
Unamortized tax credits	81,297		15,126	13,758	—	—	110,181
Defined benefit pension and other postretirement benefit plans liability	373,376		76,357	78,566	—	(6,013)	522,286
Other	66,489		20,871	27,744	—	—	115,104
Total deferred credits and other liabilities	1,533,690		353,109	273,414	—	(6,013)	2,154,200
Total capitalization and liabilities	$	5,241,562	991,716	914,836	77	(653,283)	$	6,494,908

Condensed Consolidating Balance Sheet

December 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi-diaries	Consoli- dating 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)	—
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)	—
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)	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)	$	2,141,918
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)	—
Accounts payable	97,102		19,570	17,177	—	—	133,849
Interest and preferred dividends payable	14,480		3,138	2,790	—	(58)	20,350
Taxes accrued, including revenue taxes	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)	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

Balance Sheets Data

(in thousands)	March 31, 2021				December 31, 2020
Assets
Cash and due from banks			$	113,698			$	178,422
Interest-bearing deposits			110,365				114,304
Cash and cash equivalents			224,063				292,726
Investment securities
Available-for-sale, at fair value			2,305,257				1,970,417
Held-to-maturity, at amortized cost (fair value of $285,599 and $229,963, respectively)			295,046				226,947
Stock in Federal Home Loan Bank, at cost			10,000				8,680
Loans held for investment			5,310,081				5,333,843
Allowance for credit losses			(91,793)				(101,201)
Net loans			5,218,288				5,232,642
Loans held for sale, at lower of cost or fair value			23,637				28,275
Other			559,543				554,656
Goodwill			82,190				82,190
Total assets			$	8,718,024			$	8,396,533
Liabilities and shareholder’s equity
Deposit liabilities—noninterest-bearing			$	2,833,844			$	2,598,500
Deposit liabilities—interest-bearing			4,911,450				4,788,457
Other borrowings			102,685				89,670
Other			154,418				183,731
Total liabilities			8,002,397				7,660,358
Commitments and contingencies
Common stock			1				1
Additional paid-in capital			352,408				351,758
Retained earnings			394,026				369,470
Accumulated other comprehensive income (loss), net of taxes
Net unrealized gains (losses) on securities	$	(25,791)			$	19,986
Retirement benefit plans	(5,017)		(30,808)		(5,040)		14,946
Total shareholder’s equity			715,627				736,175
Total liabilities and shareholder’s equity			$	8,718,024			8,396,533
Other assets
Bank-owned life insurance			$	162,821			$	163,265
Premises and equipment, net			206,247				206,134
Accrued interest receivable			24,381				24,616
Mortgage-servicing rights			10,685				10,020
Low-income housing investments			80,791				83,435
Other			74,618				67,186
			$	559,543			$	554,656
Other liabilities
Accrued expenses			$	55,073			$	62,694
Federal and state income taxes payable			1,709				6,582
Cashier’s checks			29,363				38,011
Advance payments by borrowers			5,863				10,207
Other			62,410				66,237
			$	154,418			$	183,731

Schedule of the book value and aggregate fair value by major security type

The major components of investment securities were as follows:

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value		Gross unrealized losses
									Less than 12 months					12 months or longer
(dollars in thousands)									Number of issues	Fair  value		Amount		Number of issues	Fair  value		Amount
March 31, 2021
Available-for-sale
U.S. Treasury and federal agency obligations	$	55,969	$	1,719	$	(41)	$	57,647	1	$	4,908	$	(41)	—	$	—	$	—
Mortgage-backed securities*	2,239,311		15,404		(53,363)		2,201,352		92	1,613,008		(53,344)		1	958		(19)
Corporate bonds	29,781		1,050		—		30,831		—	—		—		—	—		—
Mortgage revenue bonds	15,427		—		—		15,427		—	—		—		—	—		—
	$	2,340,488	$	18,173	$	(53,404)	$	2,305,257	93	$	1,617,916	$	(53,385)	1	$	958	$	(19)
Held-to-maturity
Mortgage-backed securities*	$	295,046	$	2,812	$	(12,259)	$	285,599	16	$	220,908	$	(12,259)	—	$	—	$	—
	$	295,046	$	2,812	$	(12,259)	$	285,599	16	$	220,908	$	(12,259)	—	$	—	$	—
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)	—	$	—	$	—

* Issued or guaranteed by U.S. Government agencies or sponsored agencies

Schedule of contractual maturities of available-for-sale securities

The contractual maturities of investment securities were as follows:

March 31, 2021	Amortized cost		Fair value
(in thousands)
Available-for-sale
Due in one year or less	$	11,996	$	12,011
Due after one year through five years	43,530		45,180
Due after five years through ten years	30,224		31,287
Due after ten years	15,427		15,427
	101,177		103,905
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	2,239,311		2,201,352
Total available-for-sale securities	$	2,340,488	$	2,305,257
Held-to-maturity
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	$	295,046	$	285,599
Total held-to-maturity securities	$	295,046	$	285,599

Schedule of components of loans receivable

The components of loans were summarized as follows:

	March 31, 2021		December 31, 2020
(in thousands)
Real estate:
Residential 1-4 family	$	2,107,537	$	2,144,239
Commercial real estate	1,012,968		983,865
Home equity line of credit	901,462		963,578
Residential land	17,468		15,617
Commercial construction	114,455		121,424
Residential construction	13,365		11,022
Total real estate	4,167,255		4,239,745
Commercial	1,010,004		936,748
Consumer	148,511		168,733
Total loans	5,325,770		5,345,226
Deferred fees and discounts	(15,689)		(11,383)
Allowance for credit losses	(91,793)		(101,201)
Total loans, net	$	5,218,288	$	5,232,642

Schedule of allowance for credit losses

The allowance for credit losses (balances and changes) by portfolio segment were as follows:

(in thousands)	Residential 1-4 family		Commercial real estate		Home equity line of credit		Residential land		Commercial construction		Residential construction		Commercial loans		Consumer loans		Total
Three months ended March 31, 2021
Allowance for credit losses:
Beginning balance	$	4,600	$	35,607	$	6,813	$	609	$	4,149	$	11	$	25,462	$	23,950	$	101,201
Charge-offs	—		—		(50)		—		—		—		(771)		(2,860)		(3,681)
Recoveries	3		—		15		10		—		—		273		1,007		1,308
Provision	658		(1,262)		(877)		(46)		(2,696)		5		(460)		(2,357)		(7,035)
Ending balance	$	5,261	$	34,345	$	5,901	$	573	$	1,453	$	16	$	24,504	$	19,740	$	91,793
Three months ended March 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	—		—		—		(8)		—		—		(369)		(6,254)		(6,631)
Recoveries	53		—		6		9		—		—		186		764		1,018
Provision	(107)		1,326		(162)		(34)		1,060		(3)		1,993		5,828		9,901
Ending balance	$	4,476	$	16,587	$	6,225	$	352	$	3,446	$	14	$	12,977	$	33,007	$	77,084

Schedule of allowance for loan commitments

Allowance for loan commitments.  The allowance for loan commitments by portfolio segment were as follows:

(in thousands)	Home equity  line of credit		Commercial construction		Commercial loans		Total
Three months ended March 31, 2021
Allowance for loan commitments:
Beginning balance	$	300	$	3,000	$	1,000	$	4,300
Provision	100		(1,700)		200		(1,400)
Ending balance	$	400	$	1,300	$	1,200	$	2,900
Three months ended March 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	—		515		(15)		500
Ending balance	$	300	$	3,191	$	309	$	3,800

Schedule of credit risk profile by internally assigned grade for loans

The credit risk profile by vintage date based on payment activity or internally assigned grade for loans was as follows:

	Term Loans by Origination Year												Revolving Loans
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving		Converted to term loans		Total
March 31, 2021
Residential 1-4 family
Current	$	150,713	$	549,327	$	184,339	$	97,560	$	179,131	$	934,471	$	—	$	—	$	2,095,541
30-59 days past due	—		280		—		—		—		2,081		—		—		2,361
60-89 days past due	—		—		3,018		431		—		1,954		—		—		5,403
Greater than 89 days past due	—		—		942		—		—		3,290		—		—		4,232
	150,713		549,607		188,299		97,991		179,131		941,796		—		—		2,107,537
Home equity line of credit
Current	—		—		—		—		—		—		861,116		36,792		897,908
30-59 days past due	—		—		—		—		—		—		659		473		1,132
60-89 days past due	—		—		—		—		—		—		261		73		334
Greater than 89 days past due	—		—		—		—		—		—		1,243		845		2,088
	—		—		—		—		—		—		863,279		38,183		901,462
Residential land
Current	2,794		8,354		2,884		1,290		855		292		—		—		16,469
30-59 days past due	—		—		—		—		—		699		—		—		699
60-89 days past due	—		—		—		—		—		—		—		—		—
Greater than 89 days past due	—		—		—		—		—		300		—		—		300
	2,794		8,354		2,884		1,290		855		1,291		—		—		17,468
Residential construction
Current	1,114		7,865		3,344		383		659		—		—		—		13,365
30-59 days past due	—		—		—		—		—		—		—		—		—
60-89 days past due	—		—		—		—		—		—		—		—		—
Greater than 89 days past due	—		—		—		—		—		—		—		—		—
	1,114		7,865		3,344		383		659		—		—		—		13,365
Consumer
Current	6,658		25,307		57,781		29,734		4,219		475		16,332		3,729		144,235
30-59 days past due	125		164		577		452		90		1		106		125		1,640
60-89 days past due	—		149		623		372		119		1		80		92		1,436
Greater than 89 days past due	—		218		356		280		56		1		199		90		1,200
	6,783		25,838		59,337		30,838		4,484		478		16,717		4,036		148,511
Commercial real estate
Pass	23,091		274,952		69,384		60,627		28,174		222,617		11,000		—		689,845
Special Mention	—		4,914		29,597		57,489		51,586		97,247		—		—		240,833
Substandard	—		—		14,647		4,170		1,877		61,596		—		—		82,290
Doubtful	—		—		—		—		—		—		—		—		—
	23,091		279,866		113,628		122,286		81,637		381,460		11,000		—		1,012,968
Commercial construction
Pass	—		21,414		39,513		26,990		—		2,917		20,972		—		111,806
Special Mention	245		2,404		—		—		—		—		—		—		2,649
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
	245		23,818		39,513		26,990		—		2,917		20,972		—		114,455
Commercial
Pass	169,095		337,753		96,251		60,462		28,545		51,072		91,178		19,666		854,022
Special Mention	65		38,316		15,024		1,820		6,725		33,990		26,301		26		122,267
Substandard	—		275		7,921		2,004		3,765		11,276		6,665		1,809		33,715
Doubtful	—		—		—		—		—		—		—		—		—
	169,160		376,344		119,196		64,286		39,035		96,338		124,144		21,501		1,010,004
Total loans	$	353,900	$	1,271,692	$	526,201	$	344,064	$	305,801	$	1,424,280	$	1,036,112	$	63,720	$	5,325,770

	Term Loans by Origination Year												Revolving Loans
(in thousands)	2020		2019		2018		2017		2016		Prior		Revolving		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

Schedule of credit risk profile based on payment activity for loans

The credit risk profile based on payment activity for loans was as follows:

(in thousands)	30-59 days past due		60-89 days past due		Greater than 90 days		Total past due		Current		Total financing receivables		Amortized cost> 90 days and accruing
March 31, 2021
Real estate:
Residential 1-4 family	$	2,361	$	5,403	$	4,232	$	11,996	$	2,095,541	$	2,107,537	$	—
Commercial real estate	1,681		—		—		1,681		1,011,287		1,012,968		—
Home equity line of credit	1,132		334		2,088		3,554		897,908		901,462		—
Residential land	699		—		300		999		16,469		17,468		—
Commercial construction	—		—		—		—		114,455		114,455		—
Residential construction	—		—		—		—		13,365		13,365		—
Commercial	146		47		73		266		1,009,738		1,010,004		—
Consumer	1,640		1,436		1,200		4,276		144,235		148,511		—
Total loans	$	7,659	$	7,220	$	7,893	$	22,772	$	5,302,998	$	5,325,770	$	—
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	$	—

Schedule of credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due

The credit risk profile based on nonaccrual loans were as follows:

(in thousands)	March 31, 2021						December 31, 2020
	With a Related ACL		Without a Related ACL		Total		With a Related ACL		Without a Related ACL		Total
Real estate:
Residential 1-4 family	$	16,945	$	2,987	$	19,932	$	8,991	$	2,835	$	11,826
Commercial real estate	15,634		2,828		18,462		15,847		2,875		18,722
Home equity line of credit	5,075		1,587		6,662		5,791		1,567		7,358
Residential land	107		300		407		108		300		408
Commercial construction	—		—		—		—		—		—
Residential construction	—		—		—		—		—		—
Commercial	1,763		2,918		4,681		1,819		3,328		5,147
Consumer	3,192		—		3,192		3,935		—		3,935
Total	$	42,716	$	10,620	$	53,336	$	36,491	$	10,905	$	47,396

The credit risk profile based on loans whose terms have been modified and accruing interest were as follows:

(in thousands)	March 31, 2021		December 31, 2020
Real estate:
Residential 1-4 family	$	7,453	$	7,932
Commercial real estate	3,254		3,281
Home equity line of credit	7,727		8,148
Residential land	1,738		1,555
Commercial construction	—		—
Residential construction	—		—
Commercial	5,737		6,108
Consumer	54		54
Total troubled debt restructured loans accruing interest	$	25,963	$	27,078

Schedule of loan modifications

Loan modifications that occurred during the first three months of 2021 and 2020 were as follows:

Loans modified as a TDR	Three months ended March 31, 2021
(dollars in thousands)	Number  of contracts	Outstanding recorded  investment  (as of period end)1		Related allowance (as of period end)
Troubled debt restructurings
Real estate:
Residential 1-4 family	12	$	8,283	$	298
Commercial real estate	1	482		—
Home equity line of credit	1	170		21
Residential land	1	271		11
Commercial construction	—	—		—
Residential construction	—	—		—
Commercial	2	59		19
Consumer	—	—		—
	17	$	9,265	$	349

	Three months ended March 31, 2020
(dollars in thousands)	Number  of contracts	Outstanding recorded  investment  (as of period end)1		Related allowance (as of period end)
Troubled debt restructurings
Real estate:
Residential 1-4 family	1	$	148	$	8
Commercial real estate	2	16,584		4,281
Home equity line of credit	—	—		—
Residential land	—	—		—
Commercial construction	—	—		—
Residential construction	—	—		—
Commercial	4	756		278
Consumer	—	—		—
	7	$	17,488	$	4,567

1 The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included.

Schedule of collateral-dependent loans

Loans considered collateral-dependent were as follows:

	March 31, 2021		December 31, 2020
(in thousands)	Amortized cost		Amortized cost		Collateral type
Real estate:
Residential 1-4 family	$	2,782	$	2,541	Residential real estate property
Commercial real estate	2,828		2,875		Commercial real estate property
Home equity line of credit	1,587		1,567		Residential real estate property
Residential land	300		300		Residential real estate property
Total real estate	7,497		7,283
Commercial	889		934		Business assets
Total	$	8,386	$	8,217

Schedule of amortized intangible assets

Changes in the carrying value of MSRs were as follows:

(in thousands)	Gross carrying amount1		Accumulated amortization		Valuation allowance		Net carrying amount
March 31, 2021	$	20,830	$	(10,141)	$	(4)	$	10,685
December 31, 2020	22,950		(12,670)		(260)		10,020

1     Reflects impact of loans paid in full

Changes related to MSRs were as follows:

	Three months ended March 31
(in thousands)	2021		2020
Mortgage servicing rights
Beginning balance	$	10,280	$	9,101
Amount capitalized	1,547		636
Amortization	(1,138)		(617)
Other-than-temporary impairment	—		—
Carrying amount before valuation allowance	10,689		9,120
Valuation allowance for mortgage servicing rights
Beginning balance	260		—
Provision	(256)		—
Other-than-temporary impairment	—		—
Ending balance	4		—
Net carrying value of mortgage servicing rights	$	10,685	$	9,120

Schedule of key assumptions used in estimating fair value

Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows:

(dollars in thousands)	March 31, 2021			December 31, 2020
Unpaid principal balance	$	1,505,963		$	1,450,312
Weighted average note rate	3.57		%	3.68		%
Weighted average discount rate	9.25		%	9.25		%
Weighted average prepayment speed	12.0		%	17.7		%

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis:

					Significant unobservable  input value (1)
($ in thousands)	Fair value		Valuation technique	Significant unobservable input	Range	Weighted Average
March 31, 2021
Home equity lines of credit	$	69	Fair value of collateral	Appraised value less selling cost	N/A (2)	N/A (2)
Mortgage servicing rights	61		Discounted cash flow	Prepayment speed	17% - 24%	17	%
				Discount rate		9.3	%
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	%

(1) Represents percent of outstanding principal balance.

(2) N/A - Not applicable. There is one asset in each fair value measurement type.

Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets

The sensitivity analysis of fair value of MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows:

(dollars in thousands)	March 31, 2021		December 31, 2020
Prepayment rate:
25 basis points adverse rate change	$	(659)	$	(738)
50 basis points adverse rate change	(1,376)		(1,445)
Discount rate:
25 basis points adverse rate change	(110)		(68)
50 basis points adverse rate change	(218)		(135)

Schedule of securities sold under agreements to repurchase

The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties:

(in millions)	Gross amount  of recognized  liabilities		Gross amount  offset in the  Balance Sheets		Net amount of liabilities presented in the Balance Sheets
Repurchase agreements
March 31, 2021	$	103	$	—	$	103
December 31, 2020	90		—		90

	Gross amount not offset in the Balance Sheets
(in millions)	Net amount of liabilities presented in the Balance Sheets		Financial instruments		Cash collateral pledged
Commercial account holders
March 31, 2021	$	103	$	122	$	—
December 31, 2020	90		92		—

Schedule of notional and fair value of derivatives

The notional amount and fair value of ASB’s derivative financial instruments were as follows:

	March 31, 2021				December 31, 2020
(in thousands)	Notional amount		Fair value		Notional amount		Fair value
Interest rate lock commitments	$	49,316	$	438	$	120,980	$	4,536
Forward commitments	49,500		340		100,500		(500)

Schedule of derivative financial instruments

ASB’s derivative financial instruments, their fair values and balance sheet location were as follows:

Derivative Financial Instruments Not Designated as Hedging Instruments 1	March 31, 2021				December 31, 2020
(in thousands)	Asset derivatives		Liability derivatives		Asset derivatives		Liability derivatives
Interest rate lock commitments	$	456	$	(18)	$	4,536	$	—
Forward commitments	340		—		—		500
	$	796	$	(18)	$	4,536	$	500

1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the balance sheets.

Schedule of derivative financial instruments and net gain or loss

The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in ASB’s statements of income:

Derivative Financial Instruments Not Designated as Hedging Instruments	Location of net gains (losses) recognized in the Statements of Income	Three months ended March 31
(in thousands)		2021		2020
Interest rate lock commitments	Mortgage banking income	$	(4,098)	$	1,555
Forward commitments	Mortgage banking income	840		(543)
		$	(3,258)	$	1,012

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Shareholders' equity (Tables)

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Schedule of accumulated other comprehensive income

Changes in the balances of each component of accumulated other comprehensive income/(loss) (AOCI) were as follows:

	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, 2020	$	19,986	$	(3,363)	$	(17,887)	$	(1,264)	$	(2,919)
Current period other comprehensive income (loss)	(45,777)		1,562		199		(44,016)		34
Balance, March 31, 2021	$	(25,791)	$	(1,801)	$	(17,688)	$	(45,280)	$	(2,885)
Balance, December 31, 2019	$	2,481	$	(1,613)	$	(20,907)	$	(20,039)	$	(1,279)
Current period other comprehensive income (loss)	19,448		(1,784)		548		18,212		26
Balance, March 31, 2020	$	21,929	$	(3,397)	$	(20,359)	$	(1,827)	$	(1,253)

Schedule of reclassifications out of accumulated other comprehensive income/(loss)

Reclassifications out of AOCI were as follows:

	Amount reclassified from AOCI				Affected line item in the  Statements of Income / Balance Sheets
Three months ended March 31	2021		2020
(in thousands)
HEI consolidated
Net realized gains on securities included in net income	$	(387)	$	—	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	6,010		5,706		See Note 8 for additional details
Impact of D&Os of the PUC included in regulatory assets	(5,811)		(5,158)		See Note 8 for additional details
Total reclassifications	$	(188)	$	548
Hawaiian Electric consolidated
Retirement benefit plans:
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost	$	5,845	$	5,184	See Note 8 for additional details
Impact of D&Os of the PUC included in regulatory assets	(5,811)		(5,158)		See Note 8 for additional details
Total reclassifications	$	34	$	26

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Revenues (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

The following tables disaggregate revenues by major source, timing of revenue recognition, and segment:

	Three months ended March 31, 2021
(in thousands)	Electric utility		Bank		Other		Total
Revenues from contracts with customers
Electric energy sales - residential	$	181,239	$	—	$	—	$	181,239
Electric energy sales - commercial	168,465		—		—		168,465
Electric energy sales - large light and power	176,815		—		—		176,815
Electric energy sales - other	2,479		—		—		2,479
Bank fees	—		11,378		—		11,378
Other sales	—		—		924		924
Total revenues from contracts with customers	528,998		11,378		924		541,300
Revenues from other sources
Regulatory revenue	$	28,429	$	—	$	—	$	28,429
Bank interest and dividend income	—		58,620		—		58,620
Other bank noninterest income	—		7,133		—		7,133
Other	7,437		—		27		7,464
Total revenues from other sources	35,866		65,753		27		101,646
Total revenues	$	564,864	$	77,131	$	951	$	642,946
Timing of revenue recognition
Services/goods transferred at a point in time	$	—	$	11,378	$	—	$	11,378
Services/goods transferred over time	528,998		—		924		529,922
Total revenues from contracts with customers	$	528,998	$	11,378	$	924	$	541,300

	Three months ended March 31, 2020
(in thousands)	Electric utility		Bank		Other		Total
Revenues from contracts with customers
Electric energy sales - residential	$	190,266	$	—	$	—	$	190,266
Electric energy sales - commercial	197,105		—		—		197,105
Electric energy sales - large light and power	216,220		—		—		216,220
Electric energy sales - other	3,458		—		—		3,458
Bank fees	—		11,556		—		11,556
Total revenues from contracts with customers	607,049		11,556		—		618,605
Revenues from other sources
Regulatory revenue	(15,304)		—		—		(15,304)
Bank interest and dividend income	—		64,975		—		64,975
Other bank noninterest income	—		3,207		—		3,207
Other	5,697		—		6		5,703
Total revenues from other sources	(9,607)		68,182		6		58,581
Total revenues	$	597,442	$	79,738	$	6	$	677,186
Timing of revenue recognition
Services/goods transferred at a point in time	$	—	$	11,556	$	—	$	11,556
Services/goods transferred over time	607,049		—		—		607,049
Total revenues from contracts with customers	$	607,049	$	11,556	$	—	$	618,605

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Retirement benefits (Tables)

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Schedule of components of net periodic benefit cost for consolidated HEI

The components of net periodic pension costs (NPPC) and net periodic benefit costs (NPBC) for HEI consolidated and Hawaiian Electric consolidated were as follows:

	Pension benefits				Other benefits
Three months ended March 31	2021		2020		2021		2020
(in thousands)
HEI consolidated
Service cost	$	20,464	$	18,363	$	705	$	631
Interest cost	18,801		20,163		1,569		1,855
Expected return on plan assets	(33,067)		(28,466)		(3,233)		(3,038)
Amortization of net prior period (gain)/cost	—		3		(383)		(440)
Amortization of net actuarial losses1	1,556		8,057		254		50
Net periodic pension/benefit cost (return)	7,754		18,120		(1,088)		(942)
Impact of PUC D&Os	11,167		6,262		970		777
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$	18,921	$	24,382	$	(118)	$	(165)
Hawaiian Electric consolidated
Service cost	$	19,994	$	17,891	$	699	$	626
Interest cost	17,531		18,715		1,504		1,782
Expected return on plan assets	(31,368)		(26,855)		(3,182)		(2,990)
Amortization of net prior period (gain)/cost	—		2		(383)		(440)
Amortization of net actuarial losses1	2,559		7,368		250		51
Net periodic pension/benefit cost (return)	8,716		17,121		(1,112)		(971)
Impact of PUC D&Os	11,167		6,262		970		777
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$	19,883	$	23,383	$	(142)	$	(194)

1 Three months ended March 31, 2021 amounts include the one-time cumulative impact of the change in accounting principle for the plans’ fixed income securities from the calculated market-related value method to the fair value method, which was recorded in the first quarter of 2021.

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Share-based compensation (Tables)

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of share-based compensation expense and related income tax benefit

Share-based compensation expense and the related income tax benefit were as follows:

	Three months ended March 31
(in millions)	2021		2020
HEI consolidated
Share-based compensation expense 1	$	2.6	$	1.7
Income tax benefit	0.4		0.3
Hawaiian Electric consolidated
Share-based compensation expense 1	1.1		0.8
Income tax benefit	0.3		0.1

1    For the three months ended March 31, 2021 and 2020, the Company has not capitalized any share-based compensation.

Schedule of common stock granted to a nonemployee director under the 2011 Director Plan

HEI granted HEI common stock to nonemployee directors under the 2011 Director Plan as follows:

	Three months ended March 31
(dollars in thousands)	2021		2020
Shares granted	—		468
Fair value	$	—	$	23
Income tax benefit	—		6

Schedule of restricted stock units

Information about HEI’s grants of restricted stock units was as follows:

	Three months ended March 31
	2021				2020
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	193,939		$	40.89	207,641		$	35.36
Granted	127,598		33.98		77,679		48.11
Vested	(78,988)		38.51		(77,719)		34.19
Forfeited	(6,358)		42.20		(4,160)		35.81
Outstanding, end of period	236,191		$	37.91	203,441		$	40.67
Total weighted-average grant-date fair value of shares granted (in millions)	$	4.3			$	3.7

(1)    Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.

Schedule of Long-Term Incentive Plan (LTIP) linked to total return to shareholders

Information about HEI’s LTIP grants linked to TSR was as follows:

	Three months ended March 31
	2021				2020
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	89,222		$	42.10	96,402		$	39.62
Granted	44,210		41.12		24,630		48.62
Vested (issued or unissued and cancelled)	(32,355)		38.20		(29,409)		39.51
Forfeited	(1,024)		45.89		(1,007)		41.72
Outstanding, end of period	100,053		$	42.89	90,616		$	42.08
Total weighted-average grant-date fair value of shares granted (in millions)	$	1.8			$	1.2

(1)    Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.

Schedule of Long-Term Incentive Plan assumptions

The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TSR and the resulting fair value of LTIP awards granted:

	2021		2020
Risk-free interest rate	0.19	%	1.39	%
Expected life in years	3		3
Expected volatility	29.9	%	13.1	%
Range of expected volatility for Peer Group	25.6% to 102.9%		13.6% to 95.4%
Grant date fair value (per share)	$41.12		$48.62

Schedule of Long-Term Incentive Plan (LTIP) linked to other performance conditions

Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows:

	Three months ended March 31
	2021				2020
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	220,715		$	41.03	403,768		$	35.15
Granted	176,844		33.98		98,522		48.10
Vested	(43,155)		34.12		(135,804)		33.48
Increase above target (cancelled)	(14,604)		43.90		(26,111)		34.13
Forfeited	(4,098)		44.36		(4,031)		39.67
Outstanding, end of period	335,702		$	38.04	336,344		$	39.64
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions)	$	6.0			$	4.7

(1)    Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.

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Cash flows (Tables)

3 Months Ended

Mar. 31, 2021

Supplemental Cash Flow Elements [Abstract]

Schedule of supplemental disclosures of cash and noncash activity

Three months ended March 31	2021		2020
(in millions)
Supplemental disclosures of cash flow information
HEI consolidated
Interest paid to non-affiliates, net of amounts capitalized	$	15	$	18
Income taxes paid (including refundable credits)	—		—
Income taxes refunded (including refundable credits)	—		—
Hawaiian Electric consolidated
Interest paid to non-affiliates	9		9
Income taxes paid (including refundable credits)	—		—
Income taxes refunded (including refundable credits)	—		—
Supplemental disclosures of noncash activities
HEI consolidated
Property, plant and equipment unpaid invoices and accruals for capital expenditures, balance, end of period (investing)	28		32
Reduction of long-term debt from funds previously transferred for repayment (financing)	—		82
Right-of-use assets obtained in exchange for operating lease obligations (investing)	28		19
Common stock issued (gross) for director and executive/management compensation (financing)1	6		14
Hawaiian Electric consolidated
Electric utility property, plant and equipment unpaid invoices and accruals for capital expenditures, balance, end of period (investing)	24		27
Reduction of long-term debt from funds previously transferred for repayment (financing)	—		82
Right-of-use assets obtained in exchange for operating lease obligations (investing)	28		16

1 The amounts shown represent the market value of common stock issued for director and executive/management compensation and withheld to satisfy statutory tax liabilities.

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Fair value measurements (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of estimated fair values of certain of the Company's financial instruments

The following table presents the carrying or notional amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments.

			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
March 31, 2021
Financial assets
HEI consolidated
Available-for-sale investment securities	$	2,305,257	$	—	$	2,289,830	$	15,427	$	2,305,257
Held-to-maturity investment securities	295,046		—		285,599		—		285,599
Loans, net	5,241,925		—		23,637		5,352,496		5,376,133
Mortgage servicing rights	10,685		—		—		13,659		13,659
Derivative assets	103,077		340		745		—		1,085
Financial liabilities
HEI consolidated
Deposit liabilities	514,303		—		516,524		—		516,524
Short-term borrowings—other than bank	100,242		—		100,242		—		100,242
Other bank borrowings	102,685		—		102,684		—		102,684
Long-term debt, net—other than bank	2,229,738		—		2,492,539		—		2,492,539
Derivative liabilities	32,739		—		2,834		—		2,834
Hawaiian Electric consolidated
Long-term debt, net	1,675,863		—		1,904,613		—		1,904,613
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
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

Schedule of assets measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis were as follows:

	March 31, 2021						December 31, 2020
	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	$	—	$	2,201,352	$	—	$	—	$	1,849,559	$	—
U.S. Treasury and federal agency obligations	—		57,647		—		—		62,322		—
Corporate bonds	—		30,831		—		—		31,351		—
Mortgage revenue bonds	—		—		15,427		—		—		27,185
	$	—	$	2,289,830	$	15,427	$	—	$	1,943,232	$	27,185
Derivative assets
Interest rate lock commitments (bank segment)1	$	—	$	456	$	—	$	—	$	4,536	$	—
Forward commitments (bank segment)1	340		—		—		—		—		—
Interest rate swap (Other segment)2	—		289		—		—		—		—
	$	340	$	745	$	—	$	—	$	4,536	$	—
Derivative liabilities
Interest rate lock commitments (bank segment)1	$	—	$	18	$	—	$	—	$	—	$	—
Forward commitments (bank segment)1	—		—		—		500		—		—
Interest rate swap (Other segment)2	—		2,816		—		—		4,530		—
	$	—	$	2,834	$	—	$	500	$	4,530	$	—

1     Derivatives are carried at fair value in other assets or other liabilities in the balance sheets with changes in value included in mortgage banking income.

2     Derivatives are included in other assets and other liabilities in the balance sheets.

Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows:

	Three months ended March 31
Mortgage revenue bonds	2021		2020
(in thousands)
Beginning balance	$	27,185	$	28,597
Principal payments received	(11,758)		—
Purchases	—		129
Unrealized gain (loss) included in other comprehensive income	—		—
Ending balance	$	15,427	$	28,726

Schedule of assets measured at fair value on a nonrecurring basis

The carrying value of assets measured at fair value on a nonrecurring basis were as follows:

			Fair value measurements using
(in thousands)	Balance		Level 1		Level 2		Level 3
March 31, 2021
Loans	$	69	$	—	$	—	$	69
Mortgage servicing rights	61		—		—		61
December 31, 2020
Loans	387		—		—		387
Mortgage servicing rights	3,001		—		—		3,001

Schedule of significant unobservable inputs used in the fair value measurement

Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows:

(dollars in thousands)	March 31, 2021			December 31, 2020
Unpaid principal balance	$	1,505,963		$	1,450,312
Weighted average note rate	3.57		%	3.68		%
Weighted average discount rate	9.25		%	9.25		%
Weighted average prepayment speed	12.0		%	17.7		%

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis:

					Significant unobservable  input value (1)
($ in thousands)	Fair value		Valuation technique	Significant unobservable input	Range	Weighted Average
March 31, 2021
Home equity lines of credit	$	69	Fair value of collateral	Appraised value less selling cost	N/A (2)	N/A (2)
Mortgage servicing rights	61		Discounted cash flow	Prepayment speed	17% - 24%	17	%
				Discount rate		9.3	%
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	%

(1) Represents percent of outstanding principal balance.

(2) N/A - Not applicable. There is one asset in each fair value measurement type.

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Segment financial information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Segment financial information
Revenues	$ 642,946	$ 677,186
Income (loss) before income taxes	80,196	39,696
Income taxes (benefit)	15,365	5,803
Net income	64,831	33,893
Preferred stock dividends of subsidiaries	473	473
Net income for common stock	64,358	33,420
Total assets	15,358,673		$ 15,004,007
Revenues from external customers
Segment financial information
Revenues	642,946	677,186
Intersegment revenues (eliminations)
Segment financial information
Revenues	0	0
Electric utility
Segment financial information
Revenues	564,864	597,442
Income (loss) before income taxes	55,090	29,686
Income taxes (benefit)	11,233	5,282
Net income	43,857	24,404
Preferred stock dividends of subsidiaries	499	499
Net income for common stock	43,358	23,905
Total assets	6,494,908		6,457,373
Electric utility | Revenues from external customers
Segment financial information
Revenues	564,855	597,430
Electric utility | Intersegment revenues (eliminations)
Segment financial information
Revenues	9	12
Bank
Segment financial information
Revenues	77,131	79,738
Income (loss) before income taxes	37,102	18,969
Income taxes (benefit)	7,546	3,208
Net income	29,556	15,761
Preferred stock dividends of subsidiaries	0	0
Net income for common stock	29,556	15,761
Total assets	8,718,024
Bank | Revenues from external customers
Segment financial information
Revenues	77,131	79,738
Bank | Intersegment revenues (eliminations)
Segment financial information
Revenues	0	0
Other
Segment financial information
Revenues	951	6
Income (loss) before income taxes	(11,996)	(8,959)
Income taxes (benefit)	(3,414)	(2,687)
Net income	(8,582)	(6,272)
Preferred stock dividends of subsidiaries	(26)	(26)
Net income for common stock	(8,556)	(6,246)
Total assets	145,741		$ 150,101
Other | Revenues from external customers
Segment financial information
Revenues	960	18
Other | Intersegment revenues (eliminations)
Segment financial information
Revenues	$ (9)	$ (12)

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Electric utility segment - Unconsolidated variable interest entities (Details)	3 Months Ended
	Mar. 31, 2021 entity agreement MW
Power purchase agreement
Number of IPPs (in entities) | entity	3
Puna Geothermal Venture Power Purchase Agreement
Power purchase agreement
Firm capacity volume (in megawatts) | MW	13
Hawaiian Electric Company
Power purchase agreement
Number of power purchase agreements (PPAs) (in agreements) | agreement	5

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Electric utility segment - Power purchase agreements (Details) $ in Millions	1 Months Ended				3 Months Ended		12 Months Ended
	Jul. 31, 2018 MW	Jun. 30, 2015 MW	May 31, 2012 MW	Mar. 31, 1988 MW	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 1988 MW
Hu Honua Bioenergy, LLC
Regulatory Projects and Legal Obligations [Line Items]
Minimum power volume required (in megawatts) | MW			21.5
Molokai New Energy Partners
Regulatory Projects and Legal Obligations [Line Items]
Total contracted PV capacity (in megawatts) | MW	4.88
Total contracted battery energy storage system capacity | MW	3
Maximum power volume to be delivered (in megawatts) | MW	2.64
AES Hawaii
Regulatory Projects and Legal Obligations [Line Items]
Purchase commitment, period (in years)				30 years
Minimum power volume required (in megawatts) | MW				180
Additional capacity requirement (in megawatts) | MW		9
Hawaiian Electric (parent only)
Regulatory Projects and Legal Obligations [Line Items]
Purchased power					$ 142	$ 140
Hawaiian Electric (parent only) | Kalaeloa
Regulatory Projects and Legal Obligations [Line Items]
Purchased power					37	38
Increased power purchase commitment capacity (in megawatts) | MW							208
Hawaiian Electric (parent only) | AES Hawaii
Regulatory Projects and Legal Obligations [Line Items]
Purchased power					30	31
Hawaiian Electric (parent only) | HPOWER
Regulatory Projects and Legal Obligations [Line Items]
Purchased power					17	17
Hawaiian Electric (parent only) | Hamakua Energy
Regulatory Projects and Legal Obligations [Line Items]
Purchased power					11	13
Hawaiian Electric (parent only) | Puna Geothermal Venture
Regulatory Projects and Legal Obligations [Line Items]
Purchased power					4	0
Hawaiian Electric (parent only) | Wind IPPs
Regulatory Projects and Legal Obligations [Line Items]
Purchased power					29	28
Hawaiian Electric (parent only) | Solar IPPs
Regulatory Projects and Legal Obligations [Line Items]
Purchased power					12	11
Hawaiian Electric (parent only) | Other IPPs
Regulatory Projects and Legal Obligations [Line Items]
Purchased power					$ 2	$ 2

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Electric utility segment - Utility projects (Details) - USD ($) $ in Millions		1 Months Ended		3 Months Ended
	Jun. 10, 2019	Nov. 30, 2020	Jan. 31, 2020	Mar. 31, 2021	Dec. 31, 2020
ERP/EAM Implementation Project
Public Utilities, General Disclosures [Line Items]
ERP/EAM project service period (in years)	12 years
Future O&M expense reductions	$ 150.0
Future cost avoidance related to capital cost and tax costs	$ 96.0
Hawaiian Electric (parent only) | PCB Contamination
Public Utilities, General Disclosures [Line Items]
Valuation allowances and reserves				$ 9.8
Hawaiian Electric (parent only) | ERP/EAM Implementation Project
Public Utilities, General Disclosures [Line Items]
ERP/EAM project service period (in years)		12 years
Regulatory liability for O&M expense reductions				6.5
HELCO | ERP/EAM Implementation Project
Public Utilities, General Disclosures [Line Items]
ERP/EAM project service period (in years)			12 years
Regulatory liability for O&M expense reductions				1.9
Regulatory liability to be flowed through to customers					$ 1.6
Hawaiian Electric Company, Inc. and Subsidiaries | ERP/EAM Implementation Project
Public Utilities, General Disclosures [Line Items]
Regulatory liability for O&M expense reductions				11.2
Maui Electric
Public Utilities, General Disclosures [Line Items]
Additional accrued investigation and estimated cleanup costs				2.7
Maui Electric | ERP/EAM Implementation Project
Public Utilities, General Disclosures [Line Items]
Regulatory liability for O&M expense reductions				$ 2.8
Regulatory liability, amortization period				5 years
Regulatory liability to be flowed through to customers					$ 2.3

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Electric utility segment - Regulatory Proceedings (Details)						1 Months Ended		3 Months Ended	12 Months Ended
	Apr. 30, 2021 USD ($) project	Feb. 16, 2021 agreement	Dec. 23, 2020 USD ($)	Sep. 15, 2020 agreement	Apr. 27, 2017 USD ($)	Dec. 31, 2020 USD ($)	Feb. 28, 2019 USD ($)	Mar. 31, 2021 USD ($) MWh	Dec. 31, 2019 USD ($) agreement	Jun. 01, 2021 mechanism	Mar. 23, 2021 mechanism	Jul. 09, 2020 entity
Regulatory Projects and Legal Obligations [Line Items]
Potential total annual maximum reward								$ 2,000,000.0
Hawaiian Electric Company, Inc. and Subsidiaries
Regulatory Projects and Legal Obligations [Line Items]
Customer dividend, negative adjustment percentage			22.00%
Savings commitment liability, annual rate			$ 6,600,000
ERP system benefits savings liability			$ 3,900,000
Earnings sharing mechanism, actual return on equity, dead band percentage above or below target								3.00%
Approved return on equity, percentage								950.00%
Earnings share mechanism, sharing between customers and utilities, percentage								0.5
Earnings share mechanism, percentage sharing for any further difference								9
Earnings sharing mechanism, actual earning, above or below dead band								1.50%
Threshold of capital expenditures in excess of customer contributions for qualification for major project interim recovery					$ 2,500,000
MPIR requested amount							$ 21,800,000
Decoupling order, service reliability performance, historical measurement period (in years)								10 years
Maximum penalty, percent of ROE								0.20%
Service reliability, pending adjusted maximum penalty amount								$ 6,800,000
Dead band percentage above or below the target								3.00%
Call center performance, maximum penalty percentage								0.08%
Call center performance, pending adjusted maximum penalty								$ 1,400,000
Call center performance, maximum penalty amount						$ 900,000
Number of power purchase agreements (PPAs) (in agreements) | agreement		1		8					7
Incentives accrued									$ 1,700,000
Number of grid service purchase agreements | entity												2
Number of power purchase agreements qualifying for potential payout | agreement				1
Number of performance incentive mechanisms | mechanism											2
Interpolated RPS rate goal, year one and two (dollars per MWh) | MWh								20
Interpolated RPS rate goal, year three (dollars per MWh) | MWh								15
Interpolated RPS rate goal, after year three (dollars per MWh) | MWh								10
Failure to meet RPS targets, penalty rate (dollars per MWh) | MWh								20
Potential total annual maximum reward								$ 1,500,000
Potential total annual maximum reward								3,000,000.0
Total annual maximum penalty								900,000
Performance incentive mechanism, maximum reward								$ 2,000,000.0
Performance incentive mechanism, term								3 years
Hawaiian Electric Company, Inc. and Subsidiaries | Forecast
Regulatory Projects and Legal Obligations [Line Items]
Number of performance incentive mechanisms | mechanism										3
Hawaiian Electric Company, Inc. and Subsidiaries | Subsequent Event
Regulatory Projects and Legal Obligations [Line Items]
Estimated capital costs	$ 95,000,000
Number of projects | project	4
Schofield Generation Station | Hawaiian Electric Company, Inc. and Subsidiaries
Regulatory Projects and Legal Obligations [Line Items]
MPIR requested amount							17,600,000
West Loch PV Project | Hawaiian Electric Company, Inc. and Subsidiaries
Regulatory Projects and Legal Obligations [Line Items]
MPIR requested amount							3,300,000
Grid Modernization Strategy Phase 1 Project | Hawaiian Electric Company, Inc. and Subsidiaries
Regulatory Projects and Legal Obligations [Line Items]
MPIR requested amount							$ 900,000

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Electric utility segment - Annual decoupling filings summary (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
Regulatory Projects and Legal Obligations [Line Items]
2021 Annual incremental RAM adjusted revenues and ARA revenues	$ (21.7)
Annual change in accrued RBA balance as of December 31, 2020 (and associated revenue taxes)	25.0
Incremental Performance Incentive Mechanisms (net)	0.7
Incremental MPIR/EPRM Revenue Adjustment	12.8
Incremental Affiliate Transaction Refund/PUC Ordered Adjustment	2.0
Net annual incremental amount to be collected under the tariffs	18.7
Hawaiian Electric (parent only)
Regulatory Projects and Legal Obligations [Line Items]
2021 Annual incremental RAM adjusted revenues and ARA revenues	(13.8)
Annual change in accrued RBA balance as of December 31, 2020 (and associated revenue taxes)	10.4
Incremental Performance Incentive Mechanisms (net)	0.0
Incremental MPIR/EPRM Revenue Adjustment	12.6
Incremental Affiliate Transaction Refund/PUC Ordered Adjustment	0.0
Net annual incremental amount to be collected under the tariffs	9.1
Hawaii Electric Light
Regulatory Projects and Legal Obligations [Line Items]
2021 Annual incremental RAM adjusted revenues and ARA revenues	(2.0)
Annual change in accrued RBA balance as of December 31, 2020 (and associated revenue taxes)	5.7
Incremental Performance Incentive Mechanisms (net)	0.2
Incremental MPIR/EPRM Revenue Adjustment	0.1
Net annual incremental amount to be collected under the tariffs	4.0
Maui Electric
Regulatory Projects and Legal Obligations [Line Items]
2021 Annual incremental RAM adjusted revenues and ARA revenues	(5.9)
Annual change in accrued RBA balance as of December 31, 2020 (and associated revenue taxes)	8.9
Incremental Performance Incentive Mechanisms (net)	0.5
Incremental MPIR/EPRM Revenue Adjustment	0.1
Incremental Affiliate Transaction Refund/PUC Ordered Adjustment	2.0
Net annual incremental amount to be collected under the tariffs	$ 5.6

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Electric utility segment - Most recent rate proceedings (Details) - USD ($) $ in Thousands	Oct. 22, 2020	Nov. 13, 2019	Mar. 31, 2021	Dec. 31, 2020
Regulatory Projects and Legal Obligations [Line Items]
Regulatory assets			$ 773,426	$ 766,708
Hawaiian Electric (parent only)
Regulatory Projects and Legal Obligations [Line Items]
Common equity capitalization rate	58.00%
Stipulated ROACE rate	9.50%
Effective interest rate of return	7.37%
Hawaii Electric Light
Regulatory Projects and Legal Obligations [Line Items]
Common equity capitalization rate		58.00%
Stipulated ROACE rate		9.50%
Effective interest rate of return		7.52%
Amortization period for state investment tax credit		10 years
Risk sharing percentage, ratepayer		98.00%
Maximum exposure cap		$ 600
Hawaiian Electric Company, Inc. and Subsidiaries
Regulatory Projects and Legal Obligations [Line Items]
Regulatory assets			$ 22,200

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Electric utility segment - Condensed consolidating statement of income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Condensed Income Statements, Captions [Line Items]
Revenues	$ 642,946	$ 677,186
Expenses
Total expenses	544,915	617,484
Total operating income	98,031	59,702
Allowance for equity funds used during construction	2,191	2,015
Retirement defined benefits credit (expense)—other than service costs	2,435	(934)
Allowance for borrowed funds used during construction	747	688
Income before income taxes	80,196	39,696
Income taxes	15,365	5,803
Net income	64,831	33,893
Preferred stock dividends of subsidiaries	473	473
Net income for common stock	64,358	33,420
Consolidating adjustments
Condensed Income Statements, Captions [Line Items]
Revenues	(20)	(215)
Expenses
Fuel oil	0	0
Purchased power	0	0
Other operation and maintenance	0	0
Depreciation	0	0
Taxes, other than income taxes	0	0
Total expenses	0	0
Total operating income	(20)	(215)
Allowance for equity funds used during construction	0	0
Equity in earnings of subsidiaries	(12,510)	(8,804)
Retirement defined benefits credit (expense)—other than service costs	0	0
Interest expense and other charges, net	20	215
Allowance for borrowed funds used during construction	0	0
Income before income taxes	(12,510)	(8,804)
Income taxes	0
Net income	(12,510)	(8,804)
Preferred stock dividends of subsidiaries	0
Net income attributable to Hawaiian Electric	(12,510)	(8,804)
Preferred stock dividends of Hawaiian Electric	0	0
Net income for common stock	(12,510)	(8,804)
Hawaiian Electric (parent only)
Expenses
Purchased power	142,000	140,000
Hawaiian Electric (parent only) | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Revenues	400,554	421,166
Expenses
Fuel oil	88,728	120,535
Purchased power	108,604	107,951
Other operation and maintenance	77,335	85,637
Depreciation	38,914	38,011
Taxes, other than income taxes	38,627	40,501
Total expenses	352,208	392,635
Total operating income	48,346	28,531
Allowance for equity funds used during construction	1,748	1,743
Equity in earnings of subsidiaries	12,510	8,804
Retirement defined benefits credit (expense)—other than service costs	886	(546)
Interest expense and other charges, net	(12,832)	(12,002)
Allowance for borrowed funds used during construction	591	602
Income before income taxes	51,249	27,132
Income taxes	7,621	2,957
Net income	43,628	24,175
Preferred stock dividends of subsidiaries	0	0
Net income attributable to Hawaiian Electric	43,628	24,175
Preferred stock dividends of Hawaiian Electric	270	270
Net income for common stock	43,358	23,905
Hawaii Electric Light | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Revenues	85,149	89,293
Expenses
Fuel oil	16,485	22,432
Purchased power	21,597	19,521
Other operation and maintenance	17,912	19,104
Depreciation	10,048	9,760
Taxes, other than income taxes	7,993	8,342
Total expenses	74,035	79,159
Total operating income	11,114	10,134
Allowance for equity funds used during construction	132	119
Equity in earnings of subsidiaries	0	0
Retirement defined benefits credit (expense)—other than service costs	168	194
Interest expense and other charges, net	(2,581)	(2,484)
Allowance for borrowed funds used during construction	44	36
Income before income taxes	8,877	7,999
Income taxes	2,051	1,798
Net income	6,826	6,201
Preferred stock dividends of subsidiaries	134	134
Net income attributable to Hawaiian Electric	6,692	6,067
Preferred stock dividends of Hawaiian Electric	0	0
Net income for common stock	6,692	6,067
Maui Electric | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Revenues	79,181	87,198
Expenses
Fuel oil	22,214	30,254
Purchased power	12,095	12,344
Other operation and maintenance	19,323	22,806
Depreciation	8,393	8,079
Taxes, other than income taxes	7,482	8,207
Total expenses	69,507	81,690
Total operating income	9,674	5,508
Allowance for equity funds used during construction	311	153
Equity in earnings of subsidiaries	0	0
Retirement defined benefits credit (expense)—other than service costs	(33)	(29)
Interest expense and other charges, net	(2,590)	(2,323)
Allowance for borrowed funds used during construction	112	50
Income before income taxes	7,474	3,359
Income taxes	1,561	527
Net income	5,913	2,832
Preferred stock dividends of subsidiaries	95	95
Net income attributable to Hawaiian Electric	5,818	2,737
Preferred stock dividends of Hawaiian Electric	0	0
Net income for common stock	5,818	2,737
Other subsidiaries | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Revenues	0	0
Expenses
Fuel oil	0	0
Purchased power	0	0
Other operation and maintenance	0	0
Depreciation	0	0
Taxes, other than income taxes	0	0
Total expenses	0	0
Total operating income	0	0
Allowance for equity funds used during construction	0	0
Equity in earnings of subsidiaries	0	0
Retirement defined benefits credit (expense)—other than service costs	0	0
Interest expense and other charges, net	0	0
Allowance for borrowed funds used during construction	0	0
Income before income taxes	0	0
Income taxes	0
Net income	0	0
Preferred stock dividends of subsidiaries	0	0
Net income attributable to Hawaiian Electric	0	0
Preferred stock dividends of Hawaiian Electric	0	0
Net income for common stock	0	0
Hawaiian Electric Consolidated
Condensed Income Statements, Captions [Line Items]
Revenues	564,864	597,442
Expenses
Fuel oil	127,427	173,221
Purchased power	142,296	139,816
Other operation and maintenance	114,570	127,547
Depreciation	57,355	55,850
Taxes, other than income taxes	54,102	57,050
Total expenses	495,750	553,484
Total operating income	69,114	43,958
Allowance for equity funds used during construction	2,191	2,015
Equity in earnings of subsidiaries	0	0
Retirement defined benefits credit (expense)—other than service costs	1,021	(381)
Interest expense and other charges, net	(17,983)	(16,594)
Allowance for borrowed funds used during construction	747	688
Income before income taxes	55,090	29,686
Income taxes	11,233	5,282
Net income	43,857	24,404
Preferred stock dividends of subsidiaries	229	229
Net income attributable to Hawaiian Electric	43,628	24,175
Preferred stock dividends of Hawaiian Electric	270	270
Net income for common stock	$ 43,358	$ 23,905

XML

Electric utility segment - Condensed consolidating statement of comprehensive income (loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Condensed Statement of Income Captions [Line Items]
Net income for common stock	$ 64,358	$ 33,420
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes	6,010	5,706
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(5,811)	(5,158)
Other comprehensive income (loss), net of taxes	(44,016)	18,212
Comprehensive income attributable to Hawaiian Electric Industries, Inc.	20,342	51,632
Consolidating adjustments
Condensed Statement of Income Captions [Line Items]
Net income for common stock	(12,510)	(8,804)
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes	(1,596)	(1,400)
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	1,595	1,399
Other comprehensive income (loss), net of taxes	(1)	(1)
Comprehensive income attributable to Hawaiian Electric Industries, Inc.	(12,511)	(8,805)
Hawaiian Electric (parent only) | Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
Net income for common stock	43,358	23,905
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes	5,845	5,184
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(5,811)	(5,158)
Other comprehensive income (loss), net of taxes	34	26
Comprehensive income attributable to Hawaiian Electric Industries, Inc.	43,392	23,931
Hawaii Electric Light | Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
Net income for common stock	6,692	6,067
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes	835	748
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(834)	(747)
Other comprehensive income (loss), net of taxes	1	1
Comprehensive income attributable to Hawaiian Electric Industries, Inc.	6,693	6,068
Maui Electric | Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
Net income for common stock	5,818	2,737
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes	761	652
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(761)	(652)
Other comprehensive income (loss), net of taxes	0	0
Comprehensive income attributable to Hawaiian Electric Industries, Inc.	5,818	2,737
Other subsidiaries | Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
Net income for common stock	0	0
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes	0	0
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	0	0
Other comprehensive income (loss), net of taxes	0	0
Comprehensive income attributable to Hawaiian Electric Industries, Inc.	0	0
Hawaiian Electric Consolidated
Condensed Statement of Income Captions [Line Items]
Net income for common stock	43,358	23,905
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes	5,845	5,184
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(5,811)	(5,158)
Other comprehensive income (loss), net of taxes	34	26
Comprehensive income attributable to Hawaiian Electric Industries, Inc.	$ 43,392	$ 23,931

XML

Electric utility segment - Condensed consolidating balance sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Utility property, plant and equipment
Total property, plant and equipment, net	$ 5,283,768	$ 5,265,735
Current assets
Cash and cash equivalents	277,579	341,421	$ 205,514
Restricted cash	14,067	17,558	30,902
Other long-term assets
Operating lease right-of-use assets	162,713	153,069
Total assets	15,358,673	15,004,007
Capitalization
Common stock equity	2,321,293	2,337,502	2,276,505	$ 2,280,260
Cumulative preferred stock—not subject to mandatory redemption	0	0
Current liabilities
Interest and preferred dividends payable	32,405	23,547
Deferred credits and other liabilities
Deferred income taxes	380,365	395,089
Total liabilities and shareholders’ equity	15,358,673	15,004,007
Consolidating adjustments
Utility property, plant and equipment
Land	0	0
Plant and equipment	0	0
Less accumulated depreciation	0	0
Construction in progress	0	0
Utility property, plant and equipment, net	0	0
Nonutility property, plant and equipment, less accumulated depreciation	0	0
Total property, plant and equipment, net	0	0
Investment in wholly owned subsidiaries, at equity	(631,976)	(626,890)
Current assets
Cash and cash equivalents	0	0	0
Restricted cash	0	0	0
Advances to affiliates		(26,700)
Customer accounts receivable, net	0	0
Accrued unbilled revenues, net	0	0
Other accounts receivable, net	(14,470)	(16,195)
Fuel oil stock, at average cost	0	0
Materials and supplies, at average cost	0	0
Prepayments and other	(675)	0
Regulatory assets	0	0
Total current assets	(15,145)	(42,895)
Other long-term assets
Operating lease right-of-use assets	0	0
Regulatory assets	0	0
Other	(6,162)	0
Total other long-term assets	(6,162)	0
Total assets	(653,283)	(669,785)
Capitalization
Common stock equity	(631,976)	(626,891)	(593,097)	(591,969)
Cumulative preferred stock—not subject to mandatory redemption	0	0
Long-term debt, net	0	0
Total capitalization	(631,976)	(626,891)
Current liabilities
Current portion of operating lease liabilities	0	0
Short-term borrowings from non-affiliates		0
Short-term borrowings from affiliate		(26,700)
Accounts payable	0	0
Interest and preferred dividends payable	(1)	(58)
Taxes accrued, including revenue taxes	(675)	0
Regulatory liabilities	0	0
Other	(14,618)	(16,136)
Total current liabilities	(15,294)	(42,894)
Deferred credits and other liabilities
Operating lease liabilities	0	0
Deferred income taxes	0	0
Regulatory liabilities	0	0
Unamortized tax credits	0	0
Defined benefit pension and other postretirement benefit plans liability	(6,013)	0
Other	0	0
Total deferred credits and other liabilities	(6,013)	0
Total liabilities and shareholders’ equity	(653,283)	(669,785)
Hawaiian Electric (parent only) | Reportable Legal Entities
Utility property, plant and equipment
Land	42,411	42,411
Plant and equipment	4,986,417	4,960,470
Less accumulated depreciation	(1,706,529)	(1,677,256)
Construction in progress	160,331	143,616
Utility property, plant and equipment, net	3,482,630	3,469,241
Nonutility property, plant and equipment, less accumulated depreciation	5,305	5,306
Total property, plant and equipment, net	3,487,935	3,474,547
Investment in wholly owned subsidiaries, at equity	631,976	626,890
Current assets
Cash and cash equivalents	29,727	42,205	4,589
Restricted cash	11,506	15,966	30,902
Advances to affiliates		26,700
Customer accounts receivable, net	101,605	102,736
Accrued unbilled revenues, net	72,784	73,628
Other accounts receivable, net	12,967	17,984
Fuel oil stock, at average cost	51,894	38,777
Materials and supplies, at average cost	40,395	38,786
Prepayments and other	29,769	34,306
Regulatory assets	42,852	22,095
Total current assets	393,499	413,183
Other long-term assets
Operating lease right-of-use assets	123,992	125,858
Regulatory assets	501,393	513,192
Other	102,767	98,307
Total other long-term assets	728,152	737,357
Total assets	5,241,562	5,251,977
Capitalization
Common stock equity	2,157,385	2,141,918	2,044,499	2,047,352
Cumulative preferred stock—not subject to mandatory redemption	22,293	22,293
Long-term debt, net	1,176,229	1,116,426
Total capitalization	3,355,907	3,280,637
Current liabilities
Current portion of operating lease liabilities	64,423	64,599
Short-term borrowings from non-affiliates		49,979
Short-term borrowings from affiliate		0
Accounts payable	87,437	97,102
Interest and preferred dividends payable	20,075	14,480
Taxes accrued, including revenue taxes	107,552	135,018
Regulatory liabilities	17,000	20,224
Other	55,478	57,926
Total current liabilities	351,965	439,328
Deferred credits and other liabilities
Operating lease liabilities	71,431	67,824
Deferred income taxes	282,513	282,685
Regulatory liabilities	658,584	656,270
Unamortized tax credits	81,297	82,563
Defined benefit pension and other postretirement benefit plans liability	373,376	373,112
Other	66,489	69,558
Total deferred credits and other liabilities	1,533,690	1,532,012
Total liabilities and shareholders’ equity	5,241,562	5,251,977
Hawaii Electric Light | Reportable Legal Entities
Utility property, plant and equipment
Land	5,606	5,606
Plant and equipment	1,358,367	1,352,885
Less accumulated depreciation	(604,021)	(597,606)
Construction in progress	13,927	13,043
Utility property, plant and equipment, net	773,879	773,928
Nonutility property, plant and equipment, less accumulated depreciation	115	115
Total property, plant and equipment, net	773,994	774,043
Investment in wholly owned subsidiaries, at equity	0	0
Current assets
Cash and cash equivalents	7,730	3,046	4,654
Restricted cash	0	0	0
Advances to affiliates		0
Customer accounts receivable, net	21,358	23,989
Accrued unbilled revenues, net	14,911	13,631
Other accounts receivable, net	3,006	3,028
Fuel oil stock, at average cost	9,981	8,471
Materials and supplies, at average cost	9,873	9,896
Prepayments and other	3,534	5,197
Regulatory assets	2,840	1,954
Total current assets	73,233	69,212
Other long-term assets
Operating lease right-of-use assets	14,198	1,443
Regulatory assets	111,700	114,461
Other	18,591	17,992
Total other long-term assets	144,489	133,896
Total assets	991,716	977,151
Capitalization
Common stock equity	320,494	317,451	300,986	298,998
Cumulative preferred stock—not subject to mandatory redemption	7,000	7,000
Long-term debt, net	246,310	216,447
Total capitalization	573,804	540,898
Current liabilities
Current portion of operating lease liabilities	1,844	98
Short-term borrowings from non-affiliates		0
Short-term borrowings from affiliate		18,800
Accounts payable	16,037	19,570
Interest and preferred dividends payable	3,698	3,138
Taxes accrued, including revenue taxes	25,372	29,869
Regulatory liabilities	5,901	8,785
Other	11,951	13,851
Total current liabilities	64,803	94,111
Deferred credits and other liabilities
Operating lease liabilities	12,353	1,344
Deferred income taxes	53,582	54,108
Regulatory liabilities	174,820	173,938
Unamortized tax credits	15,126	15,363
Defined benefit pension and other postretirement benefit plans liability	76,357	77,679
Other	20,871	19,710
Total deferred credits and other liabilities	353,109	342,142
Total liabilities and shareholders’ equity	991,716	977,151
Maui Electric | Reportable Legal Entities
Utility property, plant and equipment
Land	3,594	3,594
Plant and equipment	1,207,095	1,195,988
Less accumulated depreciation	(549,169)	(544,217)
Construction in progress	29,730	31,683
Utility property, plant and equipment, net	691,250	687,048
Nonutility property, plant and equipment, less accumulated depreciation	1,532	1,532
Total property, plant and equipment, net	692,782	688,580
Investment in wholly owned subsidiaries, at equity	0	0
Current assets
Cash and cash equivalents	14,209	2,032	3,065
Restricted cash	0	0	0
Advances to affiliates		0
Customer accounts receivable, net	18,686	21,107
Accrued unbilled revenues, net	14,118	13,777
Other accounts receivable, net	3,570	2,856
Fuel oil stock, at average cost	12,813	10,990
Materials and supplies, at average cost	19,458	18,662
Prepayments and other	3,791	4,580
Regulatory assets	8,630	6,386
Total current assets	95,275	80,390
Other long-term assets
Operating lease right-of-use assets	344	353
Regulatory assets	106,011	108,620
Other	20,424	20,010
Total other long-term assets	126,779	128,983
Total assets	914,836	897,953
Capitalization
Common stock equity	311,405	309,363	292,010	292,870
Cumulative preferred stock—not subject to mandatory redemption	5,000	5,000
Long-term debt, net	253,324	228,429
Total capitalization	569,729	542,792
Current liabilities
Current portion of operating lease liabilities	34	33
Short-term borrowings from non-affiliates		0
Short-term borrowings from affiliate		7,900
Accounts payable	19,725	17,177
Interest and preferred dividends payable	4,400	2,790
Taxes accrued, including revenue taxes	22,876	27,637
Regulatory liabilities	7,469	8,292
Other	17,189	18,621
Total current liabilities	71,693	82,450
Deferred credits and other liabilities
Operating lease liabilities	318	326
Deferred income taxes	60,663	61,005
Regulatory liabilities	92,365	92,277
Unamortized tax credits	13,758	13,989
Defined benefit pension and other postretirement benefit plans liability	78,566	79,741
Other	27,744	25,373
Total deferred credits and other liabilities	273,414	272,711
Total liabilities and shareholders’ equity	914,836	897,953
Other subsidiaries | Reportable Legal Entities
Utility property, plant and equipment
Land	0	0
Plant and equipment	0	0
Less accumulated depreciation	0	0
Construction in progress	0	0
Utility property, plant and equipment, net	0	0
Nonutility property, plant and equipment, less accumulated depreciation	0	0
Total property, plant and equipment, net	0	0
Investment in wholly owned subsidiaries, at equity	0	0
Current assets
Cash and cash equivalents	77	77	101
Restricted cash	0	0	0
Advances to affiliates		0
Customer accounts receivable, net	0	0
Accrued unbilled revenues, net	0	0
Other accounts receivable, net	0	0
Fuel oil stock, at average cost	0	0
Materials and supplies, at average cost	0	0
Prepayments and other	0	0
Regulatory assets	0	0
Total current assets	77	77
Other long-term assets
Operating lease right-of-use assets	0	0
Regulatory assets	0	0
Other	0	0
Total other long-term assets	0	0
Total assets	77	77
Capitalization
Common stock equity	77	77	101	101
Cumulative preferred stock—not subject to mandatory redemption	0	0
Long-term debt, net	0	0
Total capitalization	77	77
Current liabilities
Current portion of operating lease liabilities	0	0
Short-term borrowings from non-affiliates		0
Short-term borrowings from affiliate		0
Accounts payable	0	0
Interest and preferred dividends payable	0	0
Taxes accrued, including revenue taxes	0	0
Regulatory liabilities	0	0
Other	0	0
Total current liabilities	0	0
Deferred credits and other liabilities
Operating lease liabilities	0	0
Deferred income taxes	0	0
Regulatory liabilities	0	0
Unamortized tax credits	0	0
Defined benefit pension and other postretirement benefit plans liability	0	0
Other	0	0
Total deferred credits and other liabilities	0	0
Total liabilities and shareholders’ equity	77	77
Hawaiian Electric Consolidated
Utility property, plant and equipment
Land	51,611	51,611
Plant and equipment	7,551,879	7,509,343
Less accumulated depreciation	(2,859,719)	(2,819,079)
Construction in progress	203,988	188,342
Utility property, plant and equipment, net	4,947,759	4,930,217
Nonutility property, plant and equipment, less accumulated depreciation	6,952	6,953
Total property, plant and equipment, net	4,954,711	4,937,170
Investment in wholly owned subsidiaries, at equity	0	0
Current assets
Cash and cash equivalents	51,743	47,360	12,409
Restricted cash	11,506	15,966	30,902
Advances to affiliates		0
Customer accounts receivable, net	141,649	147,832
Accrued unbilled revenues, net	101,813	101,036
Other accounts receivable, net	5,073	7,673
Fuel oil stock, at average cost	74,688	58,238
Materials and supplies, at average cost	69,726	67,344
Prepayments and other	36,419	44,083
Regulatory assets	54,322	30,435
Total current assets	546,939	519,967
Other long-term assets
Operating lease right-of-use assets	138,534	127,654
Regulatory assets	719,104	736,273
Other	135,620	136,309
Total other long-term assets	993,258	1,000,236
Total assets	6,494,908	6,457,373
Capitalization
Common stock equity	2,157,385	2,141,918	$ 2,044,499	$ 2,047,352
Cumulative preferred stock—not subject to mandatory redemption	34,293	34,293
Long-term debt, net	1,675,863	1,561,302
Total capitalization	3,867,541	3,737,513
Current liabilities
Current portion of operating lease liabilities	66,301	64,730
Short-term borrowings from non-affiliates	0	49,979
Short-term borrowings from affiliate		0
Accounts payable	123,199	133,849
Interest and preferred dividends payable	28,172	20,350
Taxes accrued, including revenue taxes	155,125	192,524
Regulatory liabilities	30,370	37,301
Other	70,000	74,262
Total current liabilities	473,167	572,995
Deferred credits and other liabilities
Operating lease liabilities	84,102	69,494
Deferred income taxes	396,758	397,798
Regulatory liabilities	925,769	922,485
Unamortized tax credits	110,181	111,915
Defined benefit pension and other postretirement benefit plans liability	522,286	530,532
Other	115,104	114,641
Total deferred credits and other liabilities	2,154,200	2,146,865
Total liabilities and shareholders’ equity	$ 6,494,908	$ 6,457,373

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Electric utility segment - Condensed consolidating statement of changes in common stock equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Increase (decrease) in stockholders' equity
Beginning Balance	$ 2,337,502	$ 2,280,260
Net income for common stock	64,358	33,420
Other comprehensive income, net of taxes	(44,016)	18,212
Common stock dividends	(37,156)	(36,019)
Ending Balance	2,321,293	2,276,505
Consolidating adjustments
Increase (decrease) in stockholders' equity
Beginning Balance	(626,891)	(591,969)
Net income for common stock	(12,510)	(8,804)
Other comprehensive income, net of taxes	(1)	(1)
Common stock dividends	7,426	7,676
Common stock issuance expenses		1
Ending Balance	(631,976)	(593,097)
Hawaiian Electric (parent only) | Reportable Legal Entities
Increase (decrease) in stockholders' equity
Beginning Balance	2,141,918	2,047,352
Net income for common stock	43,358	23,905
Other comprehensive income, net of taxes	34	26
Common stock dividends	(27,925)	(26,784)
Ending Balance	2,157,385	2,044,499
Hawaii Electric Light | Reportable Legal Entities
Increase (decrease) in stockholders' equity
Beginning Balance	317,451	298,998
Net income for common stock	6,692	6,067
Other comprehensive income, net of taxes	1	1
Common stock dividends	(3,650)	(4,080)
Ending Balance	320,494	300,986
Maui Electric | Reportable Legal Entities
Increase (decrease) in stockholders' equity
Beginning Balance	309,363	292,870
Net income for common stock	5,818	2,737
Other comprehensive income, net of taxes	0	0
Common stock dividends	(3,776)	(3,596)
Common stock issuance expenses		(1)
Ending Balance	311,405	292,010
Other subsidiaries | Reportable Legal Entities
Increase (decrease) in stockholders' equity
Beginning Balance	77	101
Net income for common stock	0	0
Other comprehensive income, net of taxes	0	0
Ending Balance	77	101
Hawaiian Electric Consolidated
Increase (decrease) in stockholders' equity
Beginning Balance	2,141,918	2,047,352
Net income for common stock	43,358	23,905
Other comprehensive income, net of taxes	34	26
Common stock dividends	(27,925)	(26,784)
Common stock issuance expenses		0
Ending Balance	$ 2,157,385	$ 2,044,499

XML

Electric utility segment - Condensed consolidating statement of cash flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Cash flows from operating activities
Net cash provided by operating activities	$ 41,730	$ 61,293
Cash flows from investing activities
Capital expenditures	(74,079)	(125,554)
Other	4,622	2,942
Net cash used in investing activities	(518,020)	(260,463)
Cash flows from financing activities
Common stock dividends	(37,156)	(36,018)
Proceeds from issuance of short-term debt	0	50,000
Repayment of short-term debt	(65,000)	0
Proceeds from issuance of long-term debt	161,800	186,925
Net increase in other bank borrowings with original maturities of three months or less	13,015	42,495
Other	(4,621)	(4,590)
Net cash provided by financing activities	408,957	207,901
Net increase (decrease) in cash, cash equivalents and restricted cash	(67,333)	8,731
Cash, cash equivalents and restricted cash, beginning of period	358,979	227,685
Cash, cash equivalents and restricted cash, end of period	291,646	236,416
Less: Restricted cash	(14,067)	(30,902)	$ (17,558)
Cash and cash equivalents, end of period	277,579	205,514	341,421
Consolidating adjustments
Cash flows from operating activities
Net cash provided by operating activities	(7,426)	(7,272)
Cash flows from investing activities
Capital expenditures	0	0
Advances from affiliates	(26,700)	9,000
Other	0	(404)
Net cash used in investing activities	(26,700)	8,596
Cash flows from financing activities
Common stock dividends	7,426	7,676
Preferred stock dividends of Hawaiian Electric and subsidiaries	0	0
Proceeds from issuance of short-term debt		0
Repayment of short-term debt	0
Proceeds from issuance of long-term debt	0	0
Net increase in other bank borrowings with original maturities of three months or less	26,700	(9,000)
Other	0	0
Net cash provided by financing activities	34,126	(1,324)
Net increase (decrease) in cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash, beginning of period	0	0
Cash, cash equivalents and restricted cash, end of period	0	0
Less: Restricted cash	0	0	0
Cash and cash equivalents, end of period	0	0	0
Hawaiian Electric (parent only) | Reportable Legal Entities
Cash flows from operating activities
Net cash provided by operating activities	18,764	29,004
Cash flows from investing activities
Capital expenditures	(45,293)	(83,191)
Advances from affiliates	26,700	(17,000)
Other	1,182	2,752
Net cash used in investing activities	(17,411)	(97,439)
Cash flows from financing activities
Common stock dividends	(27,925)	(26,784)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(270)	(270)
Proceeds from issuance of short-term debt		50,000
Repayment of short-term debt	(50,000)
Proceeds from issuance of long-term debt	60,000	95,000
Net increase in other bank borrowings with original maturities of three months or less	0	(46,987)
Other	(96)	(21)
Net cash provided by financing activities	(18,291)	70,938
Net increase (decrease) in cash, cash equivalents and restricted cash	(16,938)	2,503
Cash, cash equivalents and restricted cash, beginning of period	58,171	32,988
Cash, cash equivalents and restricted cash, end of period	41,233	35,491
Less: Restricted cash	(11,506)	(30,902)	(15,966)
Cash and cash equivalents, end of period	29,727	4,589	42,205
Hawaii Electric Light | Reportable Legal Entities
Cash flows from operating activities
Net cash provided by operating activities	9,635	9,478
Cash flows from investing activities
Capital expenditures	(12,728)	(18,181)
Advances from affiliates	0	8,000
Other	372	64
Net cash used in investing activities	(12,356)	(10,117)
Cash flows from financing activities
Common stock dividends	(3,650)	(4,080)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(134)	(134)
Proceeds from issuance of short-term debt		0
Repayment of short-term debt	0
Proceeds from issuance of long-term debt	30,000	0
Net increase in other bank borrowings with original maturities of three months or less	(18,800)	2,500
Other	(11)	(1)
Net cash provided by financing activities	7,405	(1,715)
Net increase (decrease) in cash, cash equivalents and restricted cash	4,684	(2,354)
Cash, cash equivalents and restricted cash, beginning of period	3,046	7,008
Cash, cash equivalents and restricted cash, end of period	7,730	4,654
Less: Restricted cash	0	0	0
Cash and cash equivalents, end of period	7,730	4,654	3,046
Maui Electric | Reportable Legal Entities
Cash flows from operating activities
Net cash provided by operating activities	10,988	7,931
Cash flows from investing activities
Capital expenditures	(12,340)	(17,772)
Advances from affiliates	0	0
Other	309	301
Net cash used in investing activities	(12,031)	(17,471)
Cash flows from financing activities
Common stock dividends	(3,776)	(3,596)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(95)	(95)
Proceeds from issuance of short-term debt		0
Repayment of short-term debt	0
Proceeds from issuance of long-term debt	25,000	0
Net increase in other bank borrowings with original maturities of three months or less	(7,900)	14,500
Other	(9)	(1)
Net cash provided by financing activities	13,220	10,808
Net increase (decrease) in cash, cash equivalents and restricted cash	12,177	1,268
Cash, cash equivalents and restricted cash, beginning of period	2,032	1,797
Cash, cash equivalents and restricted cash, end of period	14,209	3,065
Less: Restricted cash	0	0	0
Cash and cash equivalents, end of period	14,209	3,065	2,032
Other subsidiaries | Reportable Legal Entities
Cash flows from operating activities
Net cash provided by operating activities	0	0
Cash flows from investing activities
Capital expenditures	0	0
Advances from affiliates	0	0
Other	0	0
Net cash used in investing activities	0	0
Cash flows from financing activities
Common stock dividends	0	0
Preferred stock dividends of Hawaiian Electric and subsidiaries	0	0
Proceeds from issuance of short-term debt		0
Repayment of short-term debt	0
Proceeds from issuance of long-term debt	0	0
Net increase in other bank borrowings with original maturities of three months or less	0	0
Other	0	0
Net cash provided by financing activities	0	0
Net increase (decrease) in cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash, beginning of period	77	101
Cash, cash equivalents and restricted cash, end of period	77	101
Less: Restricted cash	0	0	0
Cash and cash equivalents, end of period	77	101	77
Hawaiian Electric Consolidated
Cash flows from operating activities
Net cash provided by operating activities	31,961	39,141
Cash flows from investing activities
Capital expenditures	(70,361)	(119,144)
Advances from affiliates	0	0
Other	1,863	2,713
Net cash used in investing activities	(68,498)	(116,431)
Cash flows from financing activities
Common stock dividends	(27,925)	(26,784)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(499)	(499)
Proceeds from issuance of short-term debt	0	50,000
Repayment of short-term debt	(50,000)	0
Proceeds from issuance of long-term debt	115,000	95,000
Net increase in other bank borrowings with original maturities of three months or less	0	(38,987)
Other	(116)	(23)
Net cash provided by financing activities	36,460	78,707
Net increase (decrease) in cash, cash equivalents and restricted cash	(77)	1,417
Cash, cash equivalents and restricted cash, beginning of period	63,326	41,894
Cash, cash equivalents and restricted cash, end of period	63,249	43,311
Less: Restricted cash	(11,506)	(30,902)	(15,966)
Cash and cash equivalents, end of period	$ 51,743	$ 12,409	$ 47,360

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Bank segment - Income statement data (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Interest expense
Provision for credit losses	$ (8,435)	$ 10,401
Noninterest income
Noninterest income	541,300	618,605
Noninterest expense
Income before income taxes	80,196	39,696
Income taxes	15,365	5,803
Other comprehensive income (loss), net of tax (benefits)	(44,016)	18,212
Comprehensive income attributable to Hawaiian Electric Industries, Inc.	20,342	51,632
American Savings Bank (ASB)
Interest and dividend income
Interest and fees on loans	49,947	55,545
Interest and dividends on investment securities	8,673	9,430
Total interest and dividend income	58,620	64,975
Interest expense
Interest on deposit liabilities	1,462	3,587
Interest on other borrowings	27	313
Total interest expense	1,489	3,900
Net interest income	57,131	61,075
Provision for credit losses	(8,435)	10,401
Net interest income after provision for credit losses	65,566	50,674
Noninterest income
Total noninterest income	19,039	14,763
Noninterest expense
Compensation and employee benefits	28,037	25,777
Occupancy	4,969	5,267
Data processing	4,351	3,837
Services	2,862	2,809
Equipment	2,222	2,339
Office supplies, printing and postage	1,044	1,341
Marketing	648	802
FDIC insurance	816	102
Other expense	2,554	4,194
Total noninterest expense	47,503	46,468
Income before income taxes	37,102	18,969
Income taxes	7,546	3,208
Net income attributable to Hawaiian Electric	29,556	15,761
Other comprehensive income (loss), net of tax (benefits)	(45,754)	19,847
Comprehensive income attributable to Hawaiian Electric Industries, Inc.	(16,198)	35,608
American Savings Bank (ASB) | Fees from other financial services
Noninterest income
Noninterest income	5,073	4,571
American Savings Bank (ASB) | Fee income on deposit liabilities
Noninterest income
Noninterest income	3,863	5,113
American Savings Bank (ASB) | Fee income on other financial products
Noninterest income
Noninterest income	2,442	1,872
American Savings Bank (ASB) | Bank-owned life insurance
Noninterest income
Noninterest income	2,561	794
American Savings Bank (ASB) | Mortgage banking income
Noninterest income
Noninterest income	4,300	2,000
American Savings Bank (ASB) | Gain on sale of investment securities, net
Noninterest income
Noninterest income	528	0
American Savings Bank (ASB) | Other income, net
Noninterest income
Noninterest income	$ 272	$ 413

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Bank segment - Reconciliation of Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Condensed Income Statements, Captions [Line Items]
Gain on sale of investment securities, net	$ 528	$ 0
Revenues	642,946	677,186
Provision for credit losses	(8,435)	10,401
Less: Retirement defined benefits expense (credit)—other than service costs	(2,435)	934
Total expenses	544,915	617,484
Operating income - Bank	98,031	59,702
Income before income taxes	80,196	39,696
American Savings Bank (ASB)
Condensed Income Statements, Captions [Line Items]
Interest and dividend income	58,620	64,975
Total noninterest income	19,039	14,763
Gain on sale of investment securities, net	528	0
Revenues	77,131	79,738
Total interest expense	1,489	3,900
Provision for credit losses	(8,435)	10,401
Noninterest expense	47,503	46,468
Less: Retirement defined benefits expense (credit)—other than service costs	(1,278)	434
Total expenses	41,835	60,335
Operating income - Bank	35,296	19,403
Income before income taxes	$ 37,102	$ 18,969

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Bank segment - Balance sheet data (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 277,579	$ 341,421	$ 205,514
Investment securities
Available-for-sale investment securities, at fair value	2,305,257	1,970,417
Held-to-maturity investment securities, at amortized cost	295,046	226,947
Stock in Federal Home Loan Bank, at cost	10,000	8,680
Collateral-dependent loans, amortized cost	5,325,770	5,345,226
Allowance for credit losses	(91,793)	(101,201)	(77,084)	$ (53,355)
Total loans, net	5,218,288	5,232,642
Loans held for sale, at lower of cost or fair value	23,637	28,275
Other	639,505	629,149
Goodwill	82,190	82,190
Total assets	15,358,673	15,004,007
Liabilities and shareholder’s equity
Other	557,758	618,438
Total liabilities	13,003,087	12,632,212
Commitments and contingencies
Retained earnings	687,600	660,398
Accumulated other comprehensive income (loss), net of taxes
Accumulated other comprehensive loss, net of tax benefits	(45,280)	(1,264)
Total shareholders’ equity	2,321,293	2,337,502	$ 2,276,505	$ 2,280,260
Total liabilities and shareholders’ equity	15,358,673	15,004,007
Other assets
Premises and equipment, net	5,283,768	5,265,735
Other	639,505	629,149
Other liabilities
Total other liabilities	557,758	618,438
Balance Sheet related disclosures
Securities sold under agreements to repurchase	103,000	90,000
Federal funds purchased	0	0
Held-to-maturity investment securities	285,599	229,963
American Savings Bank (ASB)
Assets
Cash and due from banks	113,698	178,422
Interest-bearing deposits	110,365	114,304
Cash and cash equivalents	224,063	292,726
Investment securities
Available-for-sale investment securities, at fair value	2,305,257	1,970,417
Held-to-maturity investment securities, at amortized cost	295,046	226,947
Stock in Federal Home Loan Bank, at cost	10,000	8,680
Collateral-dependent loans, amortized cost	5,310,081	5,333,843
Allowance for credit losses	(91,793)	(101,201)
Total loans, net	5,218,288	5,232,642
Loans held for sale, at lower of cost or fair value	23,637	28,275
Other	559,543	554,656
Goodwill	82,190	82,190
Total assets	8,718,024	8,396,533
Liabilities and shareholder’s equity
Deposit liabilities—noninterest-bearing	2,833,844	2,598,500
Deposit liabilities—interest-bearing	4,911,450	4,788,457
Other borrowings	102,685	89,670
Other	154,418	183,731
Total liabilities	8,002,397	7,660,358
Commitments and contingencies
Common stock	1	1
Additional paid-in capital	352,408	351,758
Retained earnings	394,026	369,470
Accumulated other comprehensive income (loss), net of taxes
Net unrealized gains (losses) on securities	(25,791)	19,986
Retirement benefit plans	(5,017)	(5,040)
Accumulated other comprehensive loss, net of tax benefits	(30,808)	14,946
Total shareholders’ equity	715,627	736,175
Total liabilities and shareholders’ equity	8,718,024	8,396,533
Other assets
Bank-owned life insurance	162,821	163,265
Premises and equipment, net	206,247	206,134
Accrued interest receivable	24,381	24,616
Mortgage-servicing rights	10,685	10,020
Low-income housing investments	80,791	83,435
Other	74,618	67,186
Other	559,543	554,656
Other liabilities
Accrued expenses	55,073	62,694
Federal and state income taxes payable	1,709	6,582
Cashier’s checks	29,363	38,011
Advance payments by borrowers	5,863	10,207
Other	62,410	66,237
Total other liabilities	154,418	183,731
Balance Sheet related disclosures
Securities sold under agreements to repurchase	102,700	89,700
Advances from the Federal Home Loan Bank	0	0
Held-to-maturity investment securities	$ 285,599	$ 229,963

XML

Bank segment - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Allowance for credit losses
Securities sold under agreements to repurchase	$ 103,000,000		$ 90,000,000
Federal funds purchased	0		0
Proceeds from sale of available-for-sale investment securities	197,354,000	$ 0
Gross realized gains on available-for-sale securities	1,000,000.0	0
Gross realized losses on available-for-sale securities	500,000	0
American Savings Bank (ASB)
Allowance for credit losses
Securities sold under agreements to repurchase	102,700,000		89,700,000
Advances from the Federal Home Loan Bank	$ 0		$ 0
Minimum benchmark percentage of loan to appraisal ratio which mortgage insurance is required	80.00%
Minimum benchmark percentage of loan to appraisal ratio on non-owner occupied residential property	75.00%
Home equity line of credit
Allowance for credit losses
Conversion of debt	$ 6,200,000	1,800,000
Commercial
Allowance for credit losses
Conversion of debt	500,000	2,000,000.0
Consumer
Allowance for credit losses
Conversion of debt	$ 700,000	$ 1,000,000.0

XML

Bank segment - Components of investment securities (Details) $ in Thousands	Mar. 31, 2021 USD ($) issue	Dec. 31, 2020 USD ($) issue
Debt Securities, Available-for-sale [Abstract]
Amortized cost	$ 2,340,488
Estimated fair value	2,305,257
Debt Securities, Held-to-maturity [Abstract]
Amortized cost	295,046	$ 226,947
Held-to-maturity investment securities	285,599	229,963
American Savings Bank (ASB)
Debt Securities, Available-for-sale [Abstract]
Amortized cost	2,340,488	1,943,114
Gross unrealized gains	18,173	30,454
Gross unrealized losses	(53,404)	(3,151)
Estimated fair value	$ 2,305,257	$ 1,970,417
Gross unrealized losses, Less than 12 months, Number of issues | issue	93	22
Gross unrealized losses, Less than 12 months, Fair value	$ 1,617,916	$ 373,924
Gross unrealized losses, Less than 12 months, Amount	$ (53,385)	$ (3,151)
Gross unrealized losses, 12 months or longer, Number of issues | issue	1	0
Gross unrealized losses, 12 months or longer, Fair value	$ 958	$ 0
Gross unrealized losses, 12 months or more, amount	(19)	0
Debt Securities, Held-to-maturity [Abstract]
Amortized cost	295,046	226,947
Gross unrealized gains	2,812	3,846
Gross unrealized losses	(12,259)	(830)
Held-to-maturity investment securities	$ 285,599	$ 229,963
Less than 12 months: Number of issues | issue	16	7
Less than 12 Months: Fair value	$ 220,908	$ 114,152
Less than 12 Months: Amount	$ (12,259)	$ (830)
12 months or longer: Number of issues | issue	0	0
12 months or longer: Fair value	$ 0	$ 0
12 months or longer: Amount	0	0
U.S. Treasury and federal agency obligations | American Savings Bank (ASB)
Debt Securities, Available-for-sale [Abstract]
Amortized cost	55,969	60,260
Gross unrealized gains	1,719	2,062
Gross unrealized losses	(41)	0
Estimated fair value	$ 57,647	$ 62,322
Gross unrealized losses, Less than 12 months, Number of issues | issue	1	0
Gross unrealized losses, Less than 12 months, Fair value	$ 4,908	$ 0
Gross unrealized losses, Less than 12 months, Amount	$ (41)	$ 0
Gross unrealized losses, 12 months or longer, Number of issues | issue	0	0
Gross unrealized losses, 12 months or longer, Fair value	$ 0	$ 0
Gross unrealized losses, 12 months or more, amount	0	0
Mortgage-backed securities* | American Savings Bank (ASB)
Debt Securities, Available-for-sale [Abstract]
Amortized cost	2,239,311	1,825,893
Gross unrealized gains	15,404	26,817
Gross unrealized losses	(53,363)	(3,151)
Estimated fair value	$ 2,201,352	$ 1,849,559
Gross unrealized losses, Less than 12 months, Number of issues | issue	92	22
Gross unrealized losses, Less than 12 months, Fair value	$ 1,613,008	$ 373,924
Gross unrealized losses, Less than 12 months, Amount	$ (53,344)	$ (3,151)
Gross unrealized losses, 12 months or longer, Number of issues | issue	1	0
Gross unrealized losses, 12 months or longer, Fair value	$ 958	$ 0
Gross unrealized losses, 12 months or more, amount	(19)	0
Debt Securities, Held-to-maturity [Abstract]
Amortized cost	295,046	226,947
Gross unrealized gains	2,812	3,846
Gross unrealized losses	(12,259)	(830)
Held-to-maturity investment securities	$ 285,599	$ 229,963
Less than 12 months: Number of issues | issue	16	7
Less than 12 Months: Fair value	$ 220,908	$ 114,152
Less than 12 Months: Amount	$ (12,259)	$ (830)
12 months or longer: Number of issues | issue	0	0
12 months or longer: Fair value	$ 0	$ 0
12 months or longer: Amount	0	0
Corporate bonds | American Savings Bank (ASB)
Debt Securities, Available-for-sale [Abstract]
Amortized cost	29,781	29,776
Gross unrealized gains	1,050	1,575
Gross unrealized losses	0	0
Estimated fair value	$ 30,831	$ 31,351
Gross unrealized losses, Less than 12 months, Number of issues | issue	0	0
Gross unrealized losses, Less than 12 months, Fair value	$ 0	$ 0
Gross unrealized losses, Less than 12 months, Amount	$ 0	$ 0
Gross unrealized losses, 12 months or longer, Number of issues | issue	0	0
Gross unrealized losses, 12 months or longer, Fair value	$ 0	$ 0
Gross unrealized losses, 12 months or more, amount	0	0
Mortgage revenue bonds | American Savings Bank (ASB)
Debt Securities, Available-for-sale [Abstract]
Amortized cost	15,427	27,185
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Estimated fair value	$ 15,427	$ 27,185
Gross unrealized losses, Less than 12 months, Number of issues | issue	0	0
Gross unrealized losses, Less than 12 months, Fair value	$ 0	$ 0
Gross unrealized losses, Less than 12 months, Amount	$ 0	$ 0
Gross unrealized losses, 12 months or longer, Number of issues | issue	0	0
Gross unrealized losses, 12 months or longer, Fair value	$ 0	$ 0
Gross unrealized losses, 12 months or more, amount	$ 0	$ 0

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Bank segment - Contractual maturities of investment securities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Available-for-sale
Total amortized cost	$ 101,177
Amortized cost	2,340,488
Held-to-maturity
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	295,046
Amortized cost	295,046	$ 226,947
Available-for-sale
Total fair value	103,905
Total available-for-sale securities	2,305,257
Held-to-maturity
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	285,599
Total held-to-maturity securities	285,599	229,963
American Savings Bank (ASB)
Available-for-sale
Due in one year or less	11,996
Due after one year through five years	43,530
Due after five years through ten years	30,224
Due after ten years	15,427
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	2,239,311
Amortized cost	2,340,488	1,943,114
Held-to-maturity
Amortized cost	295,046	226,947
Available-for-sale
Due in one year or less	12,011
Due after one year through five years	45,180
Due after five years through ten years	31,287
Due after ten years	15,427
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	2,201,352
Total available-for-sale securities	2,305,257	1,970,417
Held-to-maturity
Total held-to-maturity securities	$ 285,599	$ 229,963

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Bank segment - Loans receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans, gross	$ 5,325,770	$ 5,345,226
Deferred fees and discounts	(15,689)	(11,383)
Allowance for credit losses	(91,793)	(101,201)	$ (77,084)	$ (53,355)
Total loans, net	5,218,288	5,232,642
Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans, gross	4,167,255	4,239,745
Real estate | Residential 1-4 family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans, gross	2,107,537	2,144,239
Allowance for credit losses	(5,261)	(4,600)	(4,476)	(2,380)
Real estate | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans, gross	1,012,968	983,865
Allowance for credit losses	(34,345)	(35,607)	(16,587)	(15,053)
Real estate | Home equity line of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans, gross	901,462	963,578
Allowance for credit losses	(5,901)	(6,813)	(6,225)	(6,922)
Real estate | Residential land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans, gross	17,468	15,617
Allowance for credit losses	(573)	(609)	(352)	(449)
Real estate | Commercial construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans, gross	114,455	121,424
Allowance for credit losses	(1,453)	(4,149)	(3,446)	(2,097)
Real estate | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans, gross	13,365	11,022
Allowance for credit losses	(16)	(11)	(14)	(3)
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans, gross	1,010,004	936,748
Allowance for credit losses	(24,504)	(25,462)	(12,977)	(10,245)
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans, gross	148,511	168,733
Allowance for credit losses	$ (19,740)	$ (23,950)	$ (33,007)	$ (16,206)

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Bank segment - Allowance for credit losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Allowance for credit losses:
Beginning balance	$ 101,201	$ 53,355
Charge-offs	(3,681)	(6,631)
Recoveries	1,308	1,018
Provision	(7,035)	9,901
Ending balance	91,793	77,084
Real estate | Residential 1-4 family
Allowance for credit losses:
Beginning balance	4,600	2,380
Charge-offs	0	0
Recoveries	3	53
Provision	658	(107)
Ending balance	5,261	4,476
Real estate | Commercial real estate
Allowance for credit losses:
Beginning balance	35,607	15,053
Charge-offs	0	0
Recoveries	0	0
Provision	(1,262)	1,326
Ending balance	34,345	16,587
Real estate | Home equity line of credit
Allowance for credit losses:
Beginning balance	6,813	6,922
Charge-offs	(50)	0
Recoveries	15	6
Provision	(877)	(162)
Ending balance	5,901	6,225
Real estate | Residential land
Allowance for credit losses:
Beginning balance	609	449
Charge-offs	0	(8)
Recoveries	10	9
Provision	(46)	(34)
Ending balance	573	352
Real estate | Commercial construction
Allowance for credit losses:
Beginning balance	4,149	2,097
Charge-offs	0	0
Recoveries	0	0
Provision	(2,696)	1,060
Ending balance	1,453	3,446
Real estate | Residential construction
Allowance for credit losses:
Beginning balance	11	3
Charge-offs	0	0
Recoveries	0	0
Provision	5	(3)
Ending balance	16	14
Commercial
Allowance for credit losses:
Beginning balance	25,462	10,245
Charge-offs	(771)	(369)
Recoveries	273	186
Provision	(460)	1,993
Ending balance	24,504	12,977
Consumer
Allowance for credit losses:
Beginning balance	23,950	16,206
Charge-offs	(2,860)	(6,254)
Recoveries	1,007	764
Provision	(2,357)	5,828
Ending balance	$ 19,740	33,007
Impact of adoption of ASU No. 2016-13
Allowance for credit losses:
Beginning balance		19,441
Impact of adoption of ASU No. 2016-13 | Real estate | Residential 1-4 family
Allowance for credit losses:
Beginning balance		2,150
Impact of adoption of ASU No. 2016-13 | Real estate | Commercial real estate
Allowance for credit losses:
Beginning balance		208
Impact of adoption of ASU No. 2016-13 | Real estate | Home equity line of credit
Allowance for credit losses:
Beginning balance		(541)
Impact of adoption of ASU No. 2016-13 | Real estate | Residential land
Allowance for credit losses:
Beginning balance		(64)
Impact of adoption of ASU No. 2016-13 | Real estate | Commercial construction
Allowance for credit losses:
Beginning balance		289
Impact of adoption of ASU No. 2016-13 | Real estate | Residential construction
Allowance for credit losses:
Beginning balance		14
Impact of adoption of ASU No. 2016-13 | Commercial
Allowance for credit losses:
Beginning balance		922
Impact of adoption of ASU No. 2016-13 | Consumer
Allowance for credit losses:
Beginning balance		$ 16,463

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Bank segment - Allowance for loan commitments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Allowance for loan commitments:
Beginning balance	$ 4,300	$ 1,741	$ 1,741
Provision	(1,400)	500
Ending balance	2,900	3,800		$ 1,741
Accounting Standards Update [Extensible List]			us-gaap:AccountingStandardsUpdate201613Member	us-gaap:AccountingStandardsUpdate201613Member
Real estate | Home equity line of credit
Allowance for loan commitments:
Beginning balance	300	392	$ 392
Provision	100	0
Ending balance	400	300		$ 392
Real estate | Commercial construction
Allowance for loan commitments:
Beginning balance	3,000	931	931
Provision	(1,700)	515
Ending balance	1,300	3,191		931
Commercial
Allowance for loan commitments:
Beginning balance	1,000	418	418
Provision	200	(15)
Ending balance	$ 1,200	309		418
Impact of adoption of ASU No. 2016-13
Allowance for loan commitments:
Beginning balance		1,559	1,559
Ending balance				1,559
Impact of adoption of ASU No. 2016-13 | Real estate | Home equity line of credit
Allowance for loan commitments:
Beginning balance		(92)	(92)
Ending balance				(92)
Impact of adoption of ASU No. 2016-13 | Real estate | Commercial construction
Allowance for loan commitments:
Beginning balance		1,745	1,745
Ending balance				1,745
Impact of adoption of ASU No. 2016-13 | Commercial
Allowance for loan commitments:
Beginning balance		$ (94)	$ (94)
Ending balance				$ (94)

XML

Bank segment - Credit risk profile - payment activity and assigned grades (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Credit risk profile by internally assigned grade for loans
2021	$ 353,900	$ 1,339,586
2020	1,271,692	590,363
2019	526,201	382,648
2018	344,064	335,784
2017	305,801	368,904
Prior	1,424,280	1,172,236
Revolving	1,036,112	1,093,287
Converted to term loans	63,720	62,418
Total	5,325,770	5,345,226
Real estate
Credit risk profile by internally assigned grade for loans
Total	4,167,255	4,239,745
Real estate | Residential 1-4 family
Credit risk profile by internally assigned grade for loans
2021	150,713	567,282
2020	549,607	219,464
2019	188,299	111,243
2018	97,991	204,269
2017	179,131	184,888
Prior	941,796	857,093
Revolving	0	0
Converted to term loans	0	0
Total	2,107,537	2,144,239
Real estate | Home equity line of credit
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving	863,279	929,388
Converted to term loans	38,183	34,190
Total	901,462	963,578
Real estate | Residential land
Credit risk profile by internally assigned grade for loans
2021	2,794	8,357
2020	8,354	3,427
2019	2,884	1,598
2018	1,290	939
2017	855	22
Prior	1,291	1,274
Revolving	0	0
Converted to term loans	0	0
Total	17,468	15,617
Real estate | Residential construction
Credit risk profile by internally assigned grade for loans
2021	1,114	6,919
2020	7,865	3,093
2019	3,344	385
2018	383	625
2017	659	0
Prior	0	0
Revolving	0	0
Converted to term loans	0	0
Total	13,365	11,022
Real estate | Commercial real estate
Credit risk profile by internally assigned grade for loans
2021	23,091	280,864
2020	279,866	114,426
2019	113,628	124,301
2018	122,286	64,087
2017	81,637	127,799
Prior	381,460	261,388
Revolving	11,000	11,000
Converted to term loans	0	0
Total	1,012,968	983,865
Real estate | Commercial construction
Credit risk profile by internally assigned grade for loans
2021	245	16,390
2020	23,818	31,965
2019	39,513	26,990
2018	26,990	18,000
2017	0	5,562
Prior	2,917	0
Revolving	20,972	22,517
Converted to term loans	0	0
Total	114,455	121,424
Consumer
Credit risk profile by internally assigned grade for loans
2021	6,783	29,546
2020	25,838	69,325
2019	59,337	38,635
2018	30,838	7,646
2017	4,484	307
Prior	478	348
Revolving	16,717	18,848
Converted to term loans	4,036	4,078
Total	148,511	168,733
Commercial
Credit risk profile by internally assigned grade for loans
2021	169,160	430,228
2020	376,344	148,663
2019	119,196	79,496
2018	64,286	40,218
2017	39,035	50,326
Prior	96,338	52,133
Revolving	124,144	111,534
Converted to term loans	21,501	24,150
Total	1,010,004	936,748
Pass | Real estate | Commercial real estate
Credit risk profile by internally assigned grade for loans
2021	23,091	270,603
2020	274,952	63,301
2019	69,384	62,168
2018	60,627	28,432
2017	28,174	55,089
Prior	222,617	155,654
Revolving	11,000	11,000
Converted to term loans	0	0
Total	689,845	646,247
Pass | Real estate | Commercial construction
Credit risk profile by internally assigned grade for loans
2021	0	14,480
2020	21,414	31,965
2019	39,513	26,990
2018	26,990	0
2017	0	5,562
Prior	2,917	0
Revolving	20,972	22,517
Converted to term loans	0	0
Total	111,806	101,514
Pass | Commercial
Credit risk profile by internally assigned grade for loans
2021	169,095	392,088
2020	337,753	117,791
2019	96,251	75,533
2018	60,462	29,211
2017	28,545	12,520
Prior	51,072	35,770
Revolving	91,178	74,520
Converted to term loans	19,666	11,004
Total	854,022	748,437
Special Mention | Real estate | Commercial real estate
Credit risk profile by internally assigned grade for loans
2021	0	10,261
2020	4,914	36,405
2019	29,597	57,952
2018	57,489	33,763
2017	51,586	68,287
Prior	97,247	48,094
Revolving	0	0
Converted to term loans	0	0
Total	240,833	254,762
Special Mention | Real estate | Commercial construction
Credit risk profile by internally assigned grade for loans
2021	245	1,910
2020	2,404	0
2019	0	0
2018	0	18,000
2017	0	0
Prior	0	0
Revolving	0	0
Converted to term loans	0	0
Total	2,649	19,910
Special Mention | Commercial
Credit risk profile by internally assigned grade for loans
2021	65	37,836
2020	38,316	23,087
2019	15,024	1,920
2018	1,820	6,990
2017	6,725	30,264
Prior	33,990	13,250
Revolving	26,301	31,362
Converted to term loans	26	11,218
Total	122,267	155,927
Substandard | Real estate | Commercial real estate
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	14,720
2019	14,647	4,181
2018	4,170	1,892
2017	1,877	4,423
Prior	61,596	57,640
Revolving	0	0
Converted to term loans	0	0
Total	82,290	82,856
Substandard | Real estate | Commercial construction
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving	0	0
Converted to term loans	0	0
Total	0	0
Substandard | Commercial
Credit risk profile by internally assigned grade for loans
2021	0	304
2020	275	7,785
2019	7,921	2,043
2018	2,004	4,017
2017	3,765	7,542
Prior	11,276	3,113
Revolving	6,665	5,265
Converted to term loans	1,809	1,928
Total	33,715	31,997
Doubtful | Real estate | Commercial real estate
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving	0	0
Converted to term loans	0	0
Total	0	0
Doubtful | Real estate | Commercial construction
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving	0	0
Converted to term loans	0	0
Total	0	0
Doubtful | Commercial
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving	0	387
Converted to term loans	0	0
Total	0	387
Current | Real estate | Residential 1-4 family
Credit risk profile by internally assigned grade for loans
2021	150,713	567,282
2020	549,327	218,988
2019	184,339	111,243
2018	97,560	203,916
2017	179,131	184,888
Prior	934,471	849,788
Revolving	0	0
Converted to term loans	0	0
Total	2,095,541	2,136,105
Current | Real estate | Home equity line of credit
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving	861,116	927,106
Converted to term loans	36,792	33,228
Total	897,908	960,334
Current | Real estate | Residential land
Credit risk profile by internally assigned grade for loans
2021	2,794	8,357
2020	8,354	3,427
2019	2,884	1,598
2018	1,290	939
2017	855	22
Prior	292	272
Revolving	0	0
Converted to term loans	0	0
Total	16,469	14,615
Current | Real estate | Residential construction
Credit risk profile by internally assigned grade for loans
2021	1,114	6,919
2020	7,865	3,093
2019	3,344	385
2018	383	625
2017	659	0
Prior	0	0
Revolving	0	0
Converted to term loans	0	0
Total	13,365	11,022
Current | Consumer
Credit risk profile by internally assigned grade for loans
2021	6,658	28,818
2020	25,307	67,159
2019	57,781	37,072
2018	29,734	7,207
2017	4,219	293
Prior	475	348
Revolving	16,332	18,351
Converted to term loans	3,729	3,758
Total	144,235	163,006
30-59 days past due | Real estate | Residential 1-4 family
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	280	0
2019	0	0
2018	0	0
2017	0	0
Prior	2,081	2,629
Revolving	0	0
Converted to term loans	0	0
Total	2,361	2,629
30-59 days past due | Real estate | Home equity line of credit
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving	659	552
Converted to term loans	473	298
Total	1,132	850
30-59 days past due | Real estate | Residential land
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	699	702
Revolving	0	0
Converted to term loans	0	0
Total	699	702
30-59 days past due | Real estate | Residential construction
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving	0	0
Converted to term loans	0	0
Total	0	0
30-59 days past due | Consumer
Credit risk profile by internally assigned grade for loans
2021	125	406
2020	164	1,085
2019	577	727
2018	452	155
2017	90	4
Prior	1	0
Revolving	106	138
Converted to term loans	125	90
Total	1,640	2,605
60-89 days past due | Real estate | Residential 1-4 family
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	476
2019	3,018	0
2018	431	0
2017	0	0
Prior	1,954	2,314
Revolving	0	0
Converted to term loans	0	0
Total	5,403	2,790
60-89 days past due | Real estate | Home equity line of credit
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving	261	267
Converted to term loans	73	75
Total	334	342
60-89 days past due | Real estate | Residential land
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving	0	0
Converted to term loans	0	0
Total	0	0
60-89 days past due | Real estate | Residential construction
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving	0	0
Converted to term loans	0	0
Total	0	0
60-89 days past due | Consumer
Credit risk profile by internally assigned grade for loans
2021	0	191
2020	149	549
2019	623	427
2018	372	165
2017	119	3
Prior	1	0
Revolving	80	97
Converted to term loans	92	59
Total	1,436	1,491
Greater than 89 days past due | Real estate | Residential 1-4 family
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	942	0
2018	0	353
2017	0	0
Prior	3,290	2,362
Revolving	0	0
Converted to term loans	0	0
Total	4,232	2,715
Greater than 89 days past due | Real estate | Home equity line of credit
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving	1,243	1,463
Converted to term loans	845	589
Total	2,088	2,052
Greater than 89 days past due | Real estate | Residential land
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	300	300
Revolving	0	0
Converted to term loans	0	0
Total	300	300
Greater than 89 days past due | Real estate | Residential construction
Credit risk profile by internally assigned grade for loans
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving	0	0
Converted to term loans	0	0
Total	0	0
Greater than 89 days past due | Consumer
Credit risk profile by internally assigned grade for loans
2021	0	131
2020	218	532
2019	356	409
2018	280	119
2017	56	7
Prior	1	0
Revolving	199	262
Converted to term loans	90	171
Total	$ 1,200	$ 1,631

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Bank segment - Credit risk profile - payment activity (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Credit risk profile based on payment activity for loans
Financing receivable, past due	$ 22,772	$ 19,635
Financing receivable, current	5,302,998	5,325,591
Total	5,325,770	5,345,226
Recorded Investment greater than 90 days and accruing	0	0
Real estate
Credit risk profile based on payment activity for loans
Total	4,167,255	4,239,745
Real estate | Residential 1-4 family
Credit risk profile based on payment activity for loans
Financing receivable, past due	11,996	8,134
Financing receivable, current	2,095,541	2,136,105
Total	2,107,537	2,144,239
Recorded Investment greater than 90 days and accruing	0	0
Real estate | Commercial real estate
Credit risk profile based on payment activity for loans
Financing receivable, past due	1,681	488
Financing receivable, current	1,011,287	983,377
Total	1,012,968	983,865
Recorded Investment greater than 90 days and accruing	0	0
Real estate | Home equity line of credit
Credit risk profile based on payment activity for loans
Financing receivable, past due	3,554	3,244
Financing receivable, current	897,908	960,334
Total	901,462	963,578
Recorded Investment greater than 90 days and accruing	0	0
Real estate | Residential land
Credit risk profile based on payment activity for loans
Financing receivable, past due	999	1,002
Financing receivable, current	16,469	14,615
Total	17,468	15,617
Recorded Investment greater than 90 days and accruing	0	0
Real estate | Commercial construction
Credit risk profile based on payment activity for loans
Financing receivable, past due	0	0
Financing receivable, current	114,455	121,424
Total	114,455	121,424
Recorded Investment greater than 90 days and accruing	0	0
Real estate | Residential construction
Credit risk profile based on payment activity for loans
Financing receivable, past due	0	0
Financing receivable, current	13,365	11,022
Total	13,365	11,022
Recorded Investment greater than 90 days and accruing	0	0
Commercial
Credit risk profile based on payment activity for loans
Financing receivable, past due	266	1,040
Financing receivable, current	1,009,738	935,708
Total	1,010,004	936,748
Recorded Investment greater than 90 days and accruing	0	0
Consumer
Credit risk profile based on payment activity for loans
Financing receivable, past due	4,276	5,727
Financing receivable, current	144,235	163,006
Total	148,511	168,733
Recorded Investment greater than 90 days and accruing	0	0
30-59 days past due
Credit risk profile based on payment activity for loans
Financing receivable, past due	7,659	7,394
30-59 days past due | Real estate | Residential 1-4 family
Credit risk profile based on payment activity for loans
Financing receivable, past due	2,361	2,629
Total	2,361	2,629
30-59 days past due | Real estate | Commercial real estate
Credit risk profile based on payment activity for loans
Financing receivable, past due	1,681	0
30-59 days past due | Real estate | Home equity line of credit
Credit risk profile based on payment activity for loans
Financing receivable, past due	1,132	850
Total	1,132	850
30-59 days past due | Real estate | Residential land
Credit risk profile based on payment activity for loans
Financing receivable, past due	699	702
Total	699	702
30-59 days past due | Real estate | Commercial construction
Credit risk profile based on payment activity for loans
Financing receivable, past due	0	0
30-59 days past due | Real estate | Residential construction
Credit risk profile based on payment activity for loans
Financing receivable, past due	0	0
Total	0	0
30-59 days past due | Commercial
Credit risk profile based on payment activity for loans
Financing receivable, past due	146	608
30-59 days past due | Consumer
Credit risk profile based on payment activity for loans
Financing receivable, past due	1,640	2,605
Total	1,640	2,605
60-89 days past due
Credit risk profile based on payment activity for loans
Financing receivable, past due	7,220	5,411
60-89 days past due | Real estate | Residential 1-4 family
Credit risk profile based on payment activity for loans
Financing receivable, past due	5,403	2,790
Total	5,403	2,790
60-89 days past due | Real estate | Commercial real estate
Credit risk profile based on payment activity for loans
Financing receivable, past due	0	488
60-89 days past due | Real estate | Home equity line of credit
Credit risk profile based on payment activity for loans
Financing receivable, past due	334	342
Total	334	342
60-89 days past due | Real estate | Residential land
Credit risk profile based on payment activity for loans
Financing receivable, past due	0	0
Total	0	0
60-89 days past due | Real estate | Commercial construction
Credit risk profile based on payment activity for loans
Financing receivable, past due	0	0
60-89 days past due | Real estate | Residential construction
Credit risk profile based on payment activity for loans
Financing receivable, past due	0	0
Total	0	0
60-89 days past due | Commercial
Credit risk profile based on payment activity for loans
Financing receivable, past due	47	300
60-89 days past due | Consumer
Credit risk profile based on payment activity for loans
Financing receivable, past due	1,436	1,491
Total	1,436	1,491
Greater than 90 days
Credit risk profile based on payment activity for loans
Financing receivable, past due	7,893	6,830
Greater than 90 days | Real estate | Residential 1-4 family
Credit risk profile based on payment activity for loans
Financing receivable, past due	4,232	2,715
Total	4,232	2,715
Greater than 90 days | Real estate | Commercial real estate
Credit risk profile based on payment activity for loans
Financing receivable, past due	0	0
Greater than 90 days | Real estate | Home equity line of credit
Credit risk profile based on payment activity for loans
Financing receivable, past due	2,088	2,052
Total	2,088	2,052
Greater than 90 days | Real estate | Residential land
Credit risk profile based on payment activity for loans
Financing receivable, past due	300	300
Total	300	300
Greater than 90 days | Real estate | Commercial construction
Credit risk profile based on payment activity for loans
Financing receivable, past due	0	0
Greater than 90 days | Real estate | Residential construction
Credit risk profile based on payment activity for loans
Financing receivable, past due	0	0
Total	0	0
Greater than 90 days | Commercial
Credit risk profile based on payment activity for loans
Financing receivable, past due	73	132
Greater than 90 days | Consumer
Credit risk profile based on payment activity for loans
Financing receivable, past due	1,200	1,631
Total	$ 1,200	$ 1,631

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Bank segment - Credit risk profile - nonaccrual loans (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Credit risk profile based on nonaccrual loans
With a Related ACL	$ 42,716	$ 36,491
Without a Related ACL	10,620	10,905
Total	53,336	47,396
Total troubled debt restructuring loans not included above	25,963	27,078
Real estate | Residential 1-4 family
Credit risk profile based on nonaccrual loans
With a Related ACL	16,945	8,991
Without a Related ACL	2,987	2,835
Total	19,932	11,826
Total troubled debt restructuring loans not included above	7,453	7,932
Real estate | Commercial real estate
Credit risk profile based on nonaccrual loans
With a Related ACL	15,634	15,847
Without a Related ACL	2,828	2,875
Total	18,462	18,722
Total troubled debt restructuring loans not included above	3,254	3,281
Real estate | Home equity line of credit
Credit risk profile based on nonaccrual loans
With a Related ACL	5,075	5,791
Without a Related ACL	1,587	1,567
Total	6,662	7,358
Total troubled debt restructuring loans not included above	7,727	8,148
Real estate | Residential land
Credit risk profile based on nonaccrual loans
With a Related ACL	107	108
Without a Related ACL	300	300
Total	407	408
Total troubled debt restructuring loans not included above	1,738	1,555
Real estate | Commercial construction
Credit risk profile based on nonaccrual loans
With a Related ACL	0	0
Without a Related ACL	0	0
Total	0	0
Total troubled debt restructuring loans not included above	0	0
Real estate | Residential construction
Credit risk profile based on nonaccrual loans
With a Related ACL	0	0
Without a Related ACL	0	0
Total	0	0
Total troubled debt restructuring loans not included above	0	0
Commercial
Credit risk profile based on nonaccrual loans
With a Related ACL	1,763	1,819
Without a Related ACL	2,918	3,328
Total	4,681	5,147
Total troubled debt restructuring loans not included above	5,737	6,108
Consumer
Credit risk profile based on nonaccrual loans
With a Related ACL	3,192	3,935
Without a Related ACL	0	0
Total	3,192	3,935
Total troubled debt restructuring loans not included above	$ 54	$ 54

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Bank segment - Troubled debt restructuring - narrative (Details) - Troubled debt restructurings real estate loans - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Troubled debt restructurings
Financing receivable modifications minimum, period of payment default of loans determined to be TDRs (in days)	90 days	90 days
Commitments to lend additional funds to borrows with impaired or modified loans	$ 0.0		$ 0.0
Consumer mortgage loans collateralized by residential real estate property in foreclosure process	$ 3.8		$ 3.8

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Bank segment - Loan modifications (Details) - Troubled debt restructurings real estate loans $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) contract	Mar. 31, 2020 USD ($) contract
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number  of contracts | contract	17	7
Outstanding recorded investment	$ 9,265	$ 17,488
Related allowance	$ 349	$ 4,567
Real estate | Residential 1-4 family
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number  of contracts | contract	12	1
Outstanding recorded investment	$ 8,283	$ 148
Related allowance	$ 298	$ 8
Real estate | Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number  of contracts | contract	1	2
Outstanding recorded investment	$ 482	$ 16,584
Related allowance	$ 0	$ 4,281
Real estate | Home equity line of credit
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number  of contracts | contract	1	0
Outstanding recorded investment	$ 170	$ 0
Related allowance	$ 21	$ 0
Real estate | Residential land
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number  of contracts | contract	1	0
Outstanding recorded investment	$ 271	$ 0
Related allowance	$ 11	$ 0
Real estate | Commercial construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number  of contracts | contract	0	0
Outstanding recorded investment	$ 0	$ 0
Related allowance	$ 0	$ 0
Real estate | Residential construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number  of contracts | contract	0	0
Outstanding recorded investment	$ 0	$ 0
Related allowance	$ 0	$ 0
Commercial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number  of contracts | contract	2	4
Outstanding recorded investment	$ 59	$ 756
Related allowance	$ 19	$ 278
Consumer
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number  of contracts | contract	0	0
Outstanding recorded investment	$ 0	$ 0
Related allowance	$ 0	$ 0

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Bank segment - Collateral-dependent loans (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Nonaccrual [Line Items]
Collateral-dependent loans, amortized cost	$ 5,325,770	$ 5,345,226
Real estate
Financing Receivable, Nonaccrual [Line Items]
Collateral-dependent loans, amortized cost	4,167,255	4,239,745
Real estate | Residential 1-4 family
Financing Receivable, Nonaccrual [Line Items]
Collateral-dependent loans, amortized cost	2,107,537	2,144,239
Real estate | Commercial real estate
Financing Receivable, Nonaccrual [Line Items]
Collateral-dependent loans, amortized cost	1,012,968	983,865
Real estate | Home equity line of credit
Financing Receivable, Nonaccrual [Line Items]
Collateral-dependent loans, amortized cost	901,462	963,578
Real estate | Residential land
Financing Receivable, Nonaccrual [Line Items]
Collateral-dependent loans, amortized cost	17,468	15,617
Commercial
Financing Receivable, Nonaccrual [Line Items]
Collateral-dependent loans, amortized cost	1,010,004	936,748
Residential real estate property | Real estate | Residential 1-4 family
Financing Receivable, Nonaccrual [Line Items]
Collateral-dependent loans, amortized cost	2,782	2,541
Residential real estate property | Real estate | Home equity line of credit
Financing Receivable, Nonaccrual [Line Items]
Collateral-dependent loans, amortized cost	1,587	1,567
Residential real estate property | Real estate | Residential land
Financing Receivable, Nonaccrual [Line Items]
Collateral-dependent loans, amortized cost	300	300
Commercial real estate | Real estate | Commercial real estate
Financing Receivable, Nonaccrual [Line Items]
Collateral-dependent loans, amortized cost	2,828	2,875
Collateral Pledged
Financing Receivable, Nonaccrual [Line Items]
Collateral-dependent loans, amortized cost	8,386	8,217
Collateral Pledged | Real estate
Financing Receivable, Nonaccrual [Line Items]
Collateral-dependent loans, amortized cost	7,497	7,283
Business Assets | Commercial
Financing Receivable, Nonaccrual [Line Items]
Collateral-dependent loans, amortized cost	$ 889	$ 934

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Bank segment - Mortgage servicing rights (Details) - American Savings Bank (ASB) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Mar. 31, 2020 USD ($)
Servicing Asset at Amortized Cost [Line Items]
Repurchase reserve			$ 100		$ 100
Mortgage service fees	$ 900	$ 800
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Servicing asset - beginning balance	10,020
Servicing asset - ending balance	10,685
Residential loan
Servicing Asset at Amortized Cost [Line Items]
Proceeds from sale of mortgage loans	170,900	72,500
Gain on sale of mortgage loans	4,300	2,000
Servicing contracts
Changes in Carrying Value of MSRs
Gross carrying amount			20,830	$ 22,950
Accumulated amortization			(10,141)	(12,670)
Valuation allowance	(260)	0	(4)	(260)	0
Net carrying amount			10,685	10,020	$ 9,120
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Servicing asset - beginning balance	10,280	9,101
Amount capitalized	1,547	636
Amortization	(1,138)	(617)
Other-than-temporary impairment	0	0
Servicing asset - ending balance	10,689	9,120
Valuation Allowance [Roll Forward]
Valuation allowance, beginning balance	260	0
Provision (recovery)	(256)	0
Other-than-temporary impairment	0	0
Valuation allowance, ending balance	$ 4	$ 0
Unpaid principal balance			1,505,963	1,450,312
Prepayment rate:
25 basis points adverse rate change			(659)	(738)
50 basis points adverse rate change			(1,376)	(1,445)
Discount rate:
25 basis points adverse rate change			(110)	(68)
50 basis points adverse rate change			$ (218)	$ (135)
Servicing contracts | Note rate
Valuation Allowance [Roll Forward]
Weighted average measurement input			0.0357	0.0368
Servicing contracts | Discount rate
Valuation Allowance [Roll Forward]
Weighted average measurement input			0.0925	0.0925
Servicing contracts | Prepayment speed
Valuation Allowance [Roll Forward]
Weighted average measurement input			0.120	0.177

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Bank segment - Other borrowings (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Offsetting Liabilities [Line Items]
Gross amount  of recognized  liabilities	$ 103.0	$ 90.0
Gross amount  offset in the  Balance Sheets	0.0	0.0
Securities sold under agreements to repurchase	103.0	90.0
Commercial account holders
Offsetting Liabilities [Line Items]
Securities sold under agreements to repurchase	103.0	90.0
Financial instruments	122.0	92.0
Cash collateral pledged	0.0	0.0
American Savings Bank (ASB)
Offsetting Liabilities [Line Items]
Securities sold under agreements to repurchase	$ 102.7	$ 89.7

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Bank segment - Derivatives (Details) - Not designated as a hedging instrument - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Derivative instrument
Asset derivatives	$ 796		$ 4,536
Liability derivatives	(18)		500
Net gains (losses) recognized in the Statement of Income	(3,258)	$ 1,012
Interest rate lock commitments
Derivative instrument
Notional amount	49,316		120,980
Fair value	438		4,536
Asset derivatives	456		4,536
Liability derivatives	(18)		0
Interest rate lock commitments | Mortgage banking income
Derivative instrument
Net gains (losses) recognized in the Statement of Income	(4,098)	1,555
Forward commitments
Derivative instrument
Notional amount	49,500		100,500
Fair value	340		(500)
Asset derivatives	340		0
Liability derivatives	0		$ 500
Forward commitments | Mortgage banking income
Derivative instrument
Net gains (losses) recognized in the Statement of Income	$ 840	$ (543)

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Bank segment - Contingencies (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
American Savings Bank (ASB)
Loss Contingencies [Line Items]
Unfunded commitments to fund the company's LIHTC	$ 37.8	$ 41.0

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Credit agreements - Narrative (Details)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Jul. 03, 2017 institution
Hawaiian Electric Company, Inc. and Subsidiaries | Credit Facilities Effective April 2021
Credit agreement
Number of financial institutions | institution			8
Line of credit outstanding	$ 0	$ 0
Hawaiian Electric Company, Inc. and Subsidiaries | HEI Facility
Credit agreement
Credit agreement	150,000,000
Hawaiian Electric | Hawaiian Electric Facility
Credit agreement
Credit agreement	200,000,000
Hawaiian Electric (parent only) | 364-Day Revolver | Revolving Credit Facility
Credit agreement
Credit agreement	75,000,000
Line of credit outstanding	$ 0

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Shareholders' equity - Accumulated other comprehensive income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning Balance	$ 2,337,502	$ 2,280,260
Current period other comprehensive income (loss)	(44,016)	18,212
Ending Balance	2,321,293	2,276,505
AOCI
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning Balance	(1,264)	(20,039)
Current period other comprehensive income (loss)	(44,016)	18,212
Ending Balance	(45,280)	(1,827)
Net unrealized gains (losses) on securities
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning Balance	19,986	2,481
Current period other comprehensive income (loss)	(45,777)	19,448
Ending Balance	(25,791)	21,929
Unrealized gains (losses) on derivatives
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning Balance	(3,363)	(1,613)
Current period other comprehensive income (loss)	1,562	(1,784)
Ending Balance	(1,801)	(3,397)
Retirement benefit plans
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning Balance	(17,887)	(20,907)
Current period other comprehensive income (loss)	199	548
Ending Balance	(17,688)	(20,359)
Hawaiian Electric Company, Inc. and Subsidiaries
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning Balance	2,141,918	2,047,352
Current period other comprehensive income (loss)	34	26
Ending Balance	2,157,385	2,044,499
Hawaiian Electric Company, Inc. and Subsidiaries | AOCI
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning Balance	(2,919)	(1,279)
Current period other comprehensive income (loss)	34	26
Ending Balance	(2,885)	(1,253)
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning Balance	(2,919)	(1,279)
Current period other comprehensive income (loss)	34	26
Ending Balance	$ (2,885)	$ (1,253)

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Shareholders' equity - Reclassification out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Reclassifications out of accumulated other comprehensive income/(loss)
Revenues	$ (642,946)	$ (677,186)
Total reclassifications	(188)	548
Bank
Reclassifications out of accumulated other comprehensive income/(loss)
Revenues	(77,131)	(79,738)
Hawaiian Electric Company, Inc. and Subsidiaries
Reclassifications out of accumulated other comprehensive income/(loss)
Revenues	(564,864)	(597,442)
Total reclassifications	34	26
Net realized gains on securities included in net income | Reclassification out of Accumulated Other Comprehensive Income | Bank
Reclassifications out of accumulated other comprehensive income/(loss)
Revenues	(387)	0
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost
Reclassifications out of accumulated other comprehensive income/(loss)
Total reclassifications	6,010	5,706
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | Hawaiian Electric Company, Inc. and Subsidiaries
Reclassifications out of accumulated other comprehensive income/(loss)
Total reclassifications	5,845	5,184
Impact of D&Os of the PUC included in regulatory assets
Reclassifications out of accumulated other comprehensive income/(loss)
Total reclassifications	(5,811)	(5,158)
Impact of D&Os of the PUC included in regulatory assets | Hawaiian Electric Company, Inc. and Subsidiaries
Reclassifications out of accumulated other comprehensive income/(loss)
Total reclassifications	$ (5,811)	$ (5,158)

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Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 541,300	$ 618,605
Revenues	642,946	677,186
Services/goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	11,378	11,556
Services/goods transferred over time
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	529,922	607,049
Electric energy sales - residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	181,239	190,266
Electric energy sales - commercial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	168,465	197,105
Electric energy sales - large light and power
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	176,815	216,220
Electric energy sales - other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	2,479	3,458
Bank fees
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	11,378	11,556
Other sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	924
Revenues from Other Sources
Disaggregation of Revenue [Line Items]
Revenues	101,646	58,581
Regulatory revenue
Disaggregation of Revenue [Line Items]
Revenues	28,429	(15,304)
Bank interest and dividend income
Disaggregation of Revenue [Line Items]
Revenues	58,620	64,975
Other bank noninterest income
Disaggregation of Revenue [Line Items]
Revenues	7,133	3,207
Other
Disaggregation of Revenue [Line Items]
Revenues	7,464	5,703
Electric utility
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	528,998	607,049
Revenues	564,864	597,442
Electric utility | Services/goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0
Electric utility | Services/goods transferred over time
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	528,998	607,049
Electric utility | Electric energy sales - residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	181,239	190,266
Electric utility | Electric energy sales - commercial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	168,465	197,105
Electric utility | Electric energy sales - large light and power
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	176,815	216,220
Electric utility | Electric energy sales - other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	2,479	3,458
Electric utility | Bank fees
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0
Electric utility | Other sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0
Electric utility | Revenues from Other Sources
Disaggregation of Revenue [Line Items]
Revenues	35,866	(9,607)
Electric utility | Regulatory revenue
Disaggregation of Revenue [Line Items]
Revenues	28,429	(15,304)
Electric utility | Bank interest and dividend income
Disaggregation of Revenue [Line Items]
Revenues	0	0
Electric utility | Other bank noninterest income
Disaggregation of Revenue [Line Items]
Revenues	0	0
Electric utility | Other
Disaggregation of Revenue [Line Items]
Revenues	7,437	5,697
Bank
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	11,378	11,556
Revenues	77,131	79,738
Bank | Services/goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	11,378	11,556
Bank | Services/goods transferred over time
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0
Bank | Electric energy sales - residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0
Bank | Electric energy sales - commercial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0
Bank | Electric energy sales - large light and power
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0
Bank | Electric energy sales - other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0
Bank | Bank fees
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	11,378	11,556
Bank | Other sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0
Bank | Revenues from Other Sources
Disaggregation of Revenue [Line Items]
Revenues	65,753	68,182
Bank | Regulatory revenue
Disaggregation of Revenue [Line Items]
Revenues	0	0
Bank | Bank interest and dividend income
Disaggregation of Revenue [Line Items]
Revenues	58,620	64,975
Bank | Other bank noninterest income
Disaggregation of Revenue [Line Items]
Revenues	7,133	3,207
Bank | Other
Disaggregation of Revenue [Line Items]
Revenues	0	0
Other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	924	0
Revenues	951	6
Other | Services/goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0
Other | Services/goods transferred over time
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	924	0
Other | Electric energy sales - residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0
Other | Electric energy sales - commercial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0
Other | Electric energy sales - large light and power
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0
Other | Electric energy sales - other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0
Other | Bank fees
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0
Other | Other sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	924
Other | Revenues from Other Sources
Disaggregation of Revenue [Line Items]
Revenues	27	6
Other | Regulatory revenue
Disaggregation of Revenue [Line Items]
Revenues	0	0
Other | Bank interest and dividend income
Disaggregation of Revenue [Line Items]
Revenues	0	0
Other | Other bank noninterest income
Disaggregation of Revenue [Line Items]
Revenues	0	0
Other | Other
Disaggregation of Revenue [Line Items]
Revenues	$ 27	$ 6

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Retirement benefits (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Defined Benefit Plan
Contributions made to defined benefit plans	$ 9,000	$ 17,000
Contributions expected to be paid in current year	52,000		$ 71,000
Expected payments for remainder of fiscal year	3,000		2,000
Retirement benefits expense	$ 11,000	15,000
Number of years for which regulatory asset/liability for each utility will be amortized, beginning with respective utility's next rate case (in years)	5 years
Defined contribution plan, expenses recognized	$ 1,700	1,800
Cash contributions by the employer to defined contribution plan	1,800	3,200
Defined Contribution Plan Disclosure [Line Items]
Cash contributions by the employer to defined contribution plan	1,800	3,200
American Savings Bank (ASB)
Defined Benefit Plan
Contributions expected to be paid in current year	0		0
Hawaiian Electric Industries, Inc.
Defined Benefit Plan
Contributions expected to be paid in current year	1,000		1,000
Hawaiian Electric Company, Inc. and Subsidiaries
Defined Benefit Plan
Contributions made to defined benefit plans	9,000	17,000
Contributions expected to be paid in current year	51,000		70,000
Expected payments for remainder of fiscal year	1,000		$ 1,000
Retirement benefits expense	12,000	14,000
Defined contribution plan, expenses recognized	800	700
Cash contributions by the employer to defined contribution plan	800	700
Defined Contribution Plan Disclosure [Line Items]
Cash contributions by the employer to defined contribution plan	800	700
Pension benefits
Defined Benefit Plan
Service cost	20,464	18,363
Interest cost	18,801	20,163
Expected return on plan assets	(33,067)	(28,466)
Amortization of net prior period (gain)/cost	0	3
Amortization of net actuarial losses1	1,556	8,057
Net periodic pension/benefit cost (return)	7,754	18,120
Impact of PUC D&Os	11,167	6,262
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	18,921	24,382
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries
Defined Benefit Plan
Service cost	19,994	17,891
Interest cost	17,531	18,715
Expected return on plan assets	(31,368)	(26,855)
Amortization of net prior period (gain)/cost	0	2
Amortization of net actuarial losses1	2,559	7,368
Net periodic pension/benefit cost (return)	8,716	17,121
Impact of PUC D&Os	11,167	6,262
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	19,883	23,383
Other benefits
Defined Benefit Plan
Service cost	705	631
Interest cost	1,569	1,855
Expected return on plan assets	(3,233)	(3,038)
Amortization of net prior period (gain)/cost	(383)	(440)
Amortization of net actuarial losses1	254	50
Net periodic pension/benefit cost (return)	(1,088)	(942)
Impact of PUC D&Os	970	777
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	(118)	(165)
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries
Defined Benefit Plan
Service cost	699	626
Interest cost	1,504	1,782
Expected return on plan assets	(3,182)	(2,990)
Amortization of net prior period (gain)/cost	(383)	(440)
Amortization of net actuarial losses1	250	51
Net periodic pension/benefit cost (return)	(1,112)	(971)
Impact of PUC D&Os	970	777
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$ (142)	$ (194)

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Share-based compensation - Narrative (Details) - USD ($) $ in Millions		1 Months Ended	3 Months Ended
	Mar. 01, 2014	Jun. 30, 2019	Mar. 31, 2021	Mar. 31, 2020
Share-based compensation
Income tax benefit from compensation expense			$ 0.4	$ 0.3
Restricted stock units
Share-based compensation
Fair value of vested stock			3.0	4.2
Income tax benefit from compensation expense			0.6	0.7
Unrecognized share based compensation			$ 8.3
Weighted average period for recognition of unrecognized compensation cost (in years)			2 years 7 months 6 days
Long-term Incentive Plan
Share-based compensation
Payment award, low end of range			0.00%
Payment award, high end of range			200.00%
Measurement period for total return to shareholders (in years)			3 years
Award performance period (in years)			3 years
LTIP linked to TRS
Share-based compensation
Fair value of vested stock			$ 0.8	2.6
Income tax benefit from compensation expense			0.2	0.4
Unrecognized share based compensation			$ 2.6
Weighted average period for recognition of unrecognized compensation cost (in years)			1 year 10 months 24 days
LTIP awards linked to other performance conditions
Share-based compensation
Fair value of vested stock			$ 1.7	7.6
Income tax benefit from compensation expense			0.4	$ 1.2
Unrecognized share based compensation			$ 8.0
Weighted average period for recognition of unrecognized compensation cost (in years)			2 years
Equity and Incentive Plan
Share-based compensation
Number of additional shares authorized (in shares)	1,500,000
Shares available for future issuance (in shares)			2,900,000
Number of share issuable upon vesting and achievement of performance goals (in shares)			900,000
Nonemployee Director Stock Plan
Share-based compensation
Number of additional shares authorized (in shares)		300,000
Shares available for future grant (in shares)			274,163

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Share-based compensation - Summary of income taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based compensation
Share-based compensation expense	$ 2.6	$ 1.7
Income tax benefit	0.4	0.3
Hawaiian Electric Company, Inc. and Subsidiaries
Share-based compensation
Share-based compensation expense	1.1	0.8
Income tax benefit	$ 0.3	$ 0.1

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Share-based compensation - 2011 Director Plan (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based compensation
Income tax benefit	$ 400	$ 300
Common stock
Share-based compensation
Shares granted (in shares)	0	468
Fair value	$ 0	$ 23
Income tax benefit	$ 0	$ 6

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Share-based compensation - Summary of changes in share based compensation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Restricted stock units
Restricted stock awards and restricted stock units
Outstanding, beginning of period (in shares)	193,939	207,641
Granted (in shares)	127,598	77,679
Vested (in shares)	(78,988)	(77,719)
Forfeited (in shares)	(6,358)	(4,160)
Outstanding, end of period (in shares)	236,191	203,441
Weighted-average grant-date fair value per share
Outstanding, beginning of period (in dollars per share)	$ 40.89	$ 35.36
Granted (in dollars per share)	33.98	48.11
Vested (in dollars per share)	38.51	34.19
Forfeited (in dollars per share)	42.20	35.81
Outstanding, end of period (in dollars per share)	$ 37.91	$ 40.67
Total weighted-average grant-date fair value	$ 4.3	$ 3.7
LTIP linked to TRS
Restricted stock awards and restricted stock units
Outstanding, beginning of period (in shares)	89,222	96,402
Granted (in shares)	44,210	24,630
Vested (in shares)	(32,355)	(29,409)
Forfeited (in shares)	(1,024)	(1,007)
Outstanding, end of period (in shares)	100,053	90,616
Weighted-average grant-date fair value per share
Outstanding, beginning of period (in dollars per share)	$ 42.10	$ 39.62
Granted (in dollars per share)	41.12	48.62
Vested (in dollars per share)	38.20	39.51
Forfeited (in dollars per share)	45.89	41.72
Outstanding, end of period (in dollars per share)	$ 42.89	$ 42.08
Total weighted-average grant-date fair value	$ 1.8	$ 1.2
LTIP awards linked to other performance conditions
Restricted stock awards and restricted stock units
Outstanding, beginning of period (in shares)	220,715	403,768
Granted (in shares)	176,844	98,522
Vested (in shares)	(43,155)	(135,804)
Increase above target (cancelled) (in shares)	(14,604)	(26,111)
Forfeited (in shares)	(4,098)	(4,031)
Outstanding, end of period (in shares)	335,702	336,344
Weighted-average grant-date fair value per share
Outstanding, beginning of period (in dollars per share)	$ 41.03	$ 35.15
Granted (in dollars per share)	33.98	48.10
Vested (in dollars per share)	34.12	33.48
Increase above target (in dollars per share)	43.90	34.13
Forfeited (in dollars per share)	44.36	39.67
Outstanding, end of period (in dollars per share)	$ 38.04	$ 39.64
Total weighted-average grant-date fair value	$ 6.0	$ 4.7

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Share-based compensation - Fair value assumptions (Details) - LTIP linked to TRS - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Risk-free interest rate		1.39%
Expected life (in years)		3 years
Expected volatility		13.10%
Range of expected volatility for Peer Group, minimum rate		13.60%
Range of expected volatility for Peer Group, maximum rate		95.40%
Grant date fair value (in dollars per share)		$ 48.62
Forecast
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Risk-free interest rate	0.19%
Expected life (in years)	3 years
Expected volatility	29.90%
Range of expected volatility for Peer Group, minimum rate	25.60%
Range of expected volatility for Peer Group, maximum rate	102.90%
Grant date fair value (in dollars per share)	$ 41.12

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Income taxes (Details)	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2019
Income Tax Contingency [Line Items]
Effective income tax, percent	19.00%	15.00%
Federal income tax rate	21.00%		35.00%
Hawaiian Electric Company, Inc. and Subsidiaries
Income Tax Contingency [Line Items]
Effective income tax, percent	20.00%	18.00%

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Cash flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Supplemental disclosures of cash flow information
Interest paid to non-affiliates, net of amounts capitalized	$ 15	$ 18
Income taxes paid (including refundable credits)	0	0
Income taxes refunded (including refundable credits)	0	0
Supplemental disclosures of noncash activities
Property, plant and equipment unpaid invoices and accruals for capital expenditures, balance, end of period (investing)	28	32
Reduction of long-term debt from funds previously transferred for repayment (financing)	0	82
Right-of-use assets obtained in exchange for operating lease obligations (investing)	28	19
Common stock issued (gross) for director and executive/management compensation (financing)	6	14
Hawaiian Electric Company, Inc. and Subsidiaries
Supplemental disclosures of cash flow information
Interest paid to non-affiliates, net of amounts capitalized	9	9
Income taxes paid (including refundable credits)	0	0
Income taxes refunded (including refundable credits)	0	0
Supplemental disclosures of noncash activities
Property, plant and equipment unpaid invoices and accruals for capital expenditures, balance, end of period (investing)	24	27
Reduction of long-term debt from funds previously transferred for repayment (financing)	0	82
Right-of-use assets obtained in exchange for operating lease obligations (investing)	$ 28	$ 16

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Fair value measurements - Summary of financial assets and liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financial assets
Available-for-sale investment securities	$ 2,305,257
Held-to-maturity investment securities	285,599	$ 229,963
Financial liabilities
Short-term borrowings—other than bank	100,242	129,379
Other bank borrowings	102,685	89,670
Carrying or notional amount
Financial assets
Available-for-sale investment securities	2,305,257	1,970,417
Held-to-maturity investment securities	295,046	226,947
Loans, net	5,241,925	5,260,917
Mortgage-servicing rights	10,685	10,020
Derivative assets	103,077	120,980
Financial liabilities
Deposit liabilities	514,303	548,830
Short-term borrowings—other than bank	100,242	129,379
Other bank borrowings	102,685	89,670
Long-term debt, net	2,229,738	2,119,129
Derivative liabilities	32,739	137,500
Carrying or notional amount | Hawaiian Electric Company, Inc. and Subsidiaries
Financial liabilities
Long-term debt, net	1,675,863	1,561,302
Short-term borrowings		49,979
Estimated fair value
Financial assets
Available-for-sale investment securities	2,305,257	1,970,417
Held-to-maturity investment securities	285,599	229,963
Loans, net	5,376,133	5,439,330
Mortgage-servicing rights	13,659	10,705
Derivative assets	1,085	4,536
Financial liabilities
Deposit liabilities	516,524	552,800
Short-term borrowings—other than bank	100,242	129,379
Other bank borrowings	102,684	89,669
Long-term debt, net	2,492,539	2,487,790
Derivative liabilities	2,834	5,030
Estimated fair value | Hawaiian Electric Company, Inc. and Subsidiaries
Financial liabilities
Long-term debt, net	1,904,613	1,890,490
Short-term borrowings		49,979
Estimated fair value | Level 1
Financial assets
Available-for-sale investment securities	0	0
Held-to-maturity investment securities	0	0
Loans, net	0	0
Mortgage-servicing rights	0	0
Derivative assets	340	0
Financial liabilities
Deposit liabilities	0	0
Short-term borrowings—other than bank	0	0
Other bank borrowings	0	0
Long-term debt, net	0	0
Derivative liabilities	0	500
Estimated fair value | Level 1 | Hawaiian Electric Company, Inc. and Subsidiaries
Financial liabilities
Long-term debt, net	0	0
Short-term borrowings		0
Estimated fair value | Level 2
Financial assets
Available-for-sale investment securities	2,289,830	1,943,232
Held-to-maturity investment securities	285,599	229,963
Loans, net	23,637	28,354
Mortgage-servicing rights	0	0
Derivative assets	745	4,536
Financial liabilities
Deposit liabilities	516,524	552,800
Short-term borrowings—other than bank	100,242	129,379
Other bank borrowings	102,684	89,669
Long-term debt, net	2,492,539	2,487,790
Derivative liabilities	2,834	4,530
Estimated fair value | Level 2 | Hawaiian Electric Company, Inc. and Subsidiaries
Financial liabilities
Long-term debt, net	1,904,613	1,890,490
Short-term borrowings		49,979
Estimated fair value | Level 3
Financial assets
Available-for-sale investment securities	15,427	27,185
Held-to-maturity investment securities	0	0
Loans, net	5,352,496	5,410,976
Mortgage-servicing rights	13,659	10,705
Derivative assets	0	0
Financial liabilities
Deposit liabilities	0	0
Short-term borrowings—other than bank	0	0
Other bank borrowings	0	0
Long-term debt, net	0	0
Derivative liabilities	0	0
Estimated fair value | Level 3 | Hawaiian Electric Company, Inc. and Subsidiaries
Financial liabilities
Long-term debt, net	$ 0	0
Short-term borrowings		$ 0

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Fair value measurements - Assets and liabilities measured on a recurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Derivative assets
Available-for-sale investment securities	$ 2,305,257
Fair value measurements on a recurring basis | Level 1
Derivative liabilities
Derivative liabilities	0	$ 500
Fair value measurements on a recurring basis | Level 1 | Bank
Derivative assets
Available-for-sale investment securities	0	0
Derivative assets	340	0
Fair value measurements on a recurring basis | Level 1 | Bank | Interest rate lock commitments
Derivative assets
Derivative assets	0	0
Derivative liabilities
Derivative liabilities	0	0
Fair value measurements on a recurring basis | Level 1 | Bank | Forward commitments
Derivative assets
Derivative assets	340	0
Derivative liabilities
Derivative liabilities	0	500
Fair value measurements on a recurring basis | Level 1 | Other | Interest rate swap
Derivative assets
Derivative assets	0	0
Derivative liabilities
Derivative liabilities	0	0
Fair value measurements on a recurring basis | Level 1 | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | Bank
Derivative assets
Available-for-sale investment securities	0	0
Fair value measurements on a recurring basis | Level 1 | U.S. Treasury and federal agency obligations | Bank
Derivative assets
Available-for-sale investment securities	0	0
Fair value measurements on a recurring basis | Level 1 | Corporate bonds | Bank
Derivative assets
Available-for-sale investment securities	0	0
Fair value measurements on a recurring basis | Level 1 | Mortgage revenue bonds | Bank
Derivative assets
Available-for-sale investment securities	0	0
Fair value measurements on a recurring basis | Level 2
Derivative liabilities
Derivative liabilities	2,834	4,530
Fair value measurements on a recurring basis | Level 2 | Bank
Derivative assets
Available-for-sale investment securities	2,289,830	1,943,232
Derivative assets	745	4,536
Fair value measurements on a recurring basis | Level 2 | Bank | Interest rate lock commitments
Derivative assets
Derivative assets	456	4,536
Derivative liabilities
Derivative liabilities	18	0
Fair value measurements on a recurring basis | Level 2 | Bank | Forward commitments
Derivative assets
Derivative assets	0	0
Derivative liabilities
Derivative liabilities	0	0
Fair value measurements on a recurring basis | Level 2 | Other | Interest rate swap
Derivative assets
Derivative assets	289	0
Derivative liabilities
Derivative liabilities	2,816	4,530
Fair value measurements on a recurring basis | Level 2 | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | Bank
Derivative assets
Available-for-sale investment securities	2,201,352	1,849,559
Fair value measurements on a recurring basis | Level 2 | U.S. Treasury and federal agency obligations | Bank
Derivative assets
Available-for-sale investment securities	57,647	62,322
Fair value measurements on a recurring basis | Level 2 | Corporate bonds | Bank
Derivative assets
Available-for-sale investment securities	30,831	31,351
Fair value measurements on a recurring basis | Level 2 | Mortgage revenue bonds | Bank
Derivative assets
Available-for-sale investment securities	0	0
Fair value measurements on a recurring basis | Level 3
Derivative liabilities
Derivative liabilities	0	0
Fair value measurements on a recurring basis | Level 3 | Bank
Derivative assets
Available-for-sale investment securities	15,427	27,185
Derivative assets	0	0
Fair value measurements on a recurring basis | Level 3 | Bank | Interest rate lock commitments
Derivative assets
Derivative assets	0	0
Derivative liabilities
Derivative liabilities	0	0
Fair value measurements on a recurring basis | Level 3 | Bank | Forward commitments
Derivative assets
Derivative assets	0	0
Derivative liabilities
Derivative liabilities	0	0
Fair value measurements on a recurring basis | Level 3 | Other | Interest rate swap
Derivative assets
Derivative assets	0	0
Derivative liabilities
Derivative liabilities	0	0
Fair value measurements on a recurring basis | Level 3 | Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | Bank
Derivative assets
Available-for-sale investment securities	0	0
Fair value measurements on a recurring basis | Level 3 | U.S. Treasury and federal agency obligations | Bank
Derivative assets
Available-for-sale investment securities	0	0
Fair value measurements on a recurring basis | Level 3 | Corporate bonds | Bank
Derivative assets
Available-for-sale investment securities	0	0
Fair value measurements on a recurring basis | Level 3 | Mortgage revenue bonds | Bank
Derivative assets
Available-for-sale investment securities	$ 15,427	$ 27,185

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Fair value measurements - Changes in level 3 assets and liabilities (Details) - Mortgage revenue bonds - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 27,185	$ 28,597
Principal payments received	(11,758)	0
Purchases	0	129
Unrealized gain (loss) included in other comprehensive income	0	0
Ending balance	$ 15,427	$ 28,726

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Fair value measurements - Narrative (Details)	Mar. 31, 2021
Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage revenue bonds, measurement input	0.0207

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Fair value measurements - Assets Measured on a Nonrecurring Basis (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Estimated fair value
Fair value measurements on a recurring basis
Loans, net	$ 5,376,133,000		$ 5,439,330,000
Estimated fair value | Level 1
Fair value measurements on a recurring basis
Loans, net	0		0
Estimated fair value | Level 2
Fair value measurements on a recurring basis
Loans, net	23,637,000		28,354,000
Estimated fair value | Level 3
Fair value measurements on a recurring basis
Loans, net	5,352,496,000		5,410,976,000
Fair value measurements on a nonrecurring basis | American Savings Bank (ASB)
Fair value measurements on a recurring basis
Adjustments to fair value of loans held for sale	0	$ 0
Fair value measurements on a nonrecurring basis | Level 1
Fair value measurements on a recurring basis
Loans, net	0		0
Mortgage servicing rights	0		0
Fair value measurements on a nonrecurring basis | Level 2
Fair value measurements on a recurring basis
Loans, net	0		0
Mortgage servicing rights	0		0
Fair value measurements on a nonrecurring basis | Level 3
Fair value measurements on a recurring basis
Loans, net	69,000		387,000
Mortgage servicing rights	61,000		3,001,000
Fair value measurements on a nonrecurring basis | Estimated fair value
Fair value measurements on a recurring basis
Loans, net	69,000		387,000
Mortgage servicing rights	$ 61,000		$ 3,001,000

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Fair value measurements - Summary of Level 3 financial instruments (Details) - Level 3 - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Fair value measurements
Discount rate	9.30%	9.30%
Minimum
Fair value measurements
Prepayment speed percentage	17.00%	15.00%
Maximum
Fair value measurements
Prepayment speed percentage	24.00%	22.00%
Weighted Average
Fair value measurements
Prepayment speed percentage	17.00%	22.00%
Discounted cash flow
Fair value measurements
Mortgage servicing rights	$ 61	$ 3,001
Home equity line of credit | Fair value of property or collateral
Fair value measurements
Fair value	$ 69
Commercial loans | Fair value of property or collateral
Fair value measurements
Fair value		$ 387