HEI(HE) - 2021 Q1 - Quarterly Report

Financial Performance - Revenues for the first quarter of 2021 were $642.946 million, a decrease of 5$677.186 million in the same period of 2020[203]. - Operating income increased by 64% to $98.031 million in Q1 2021, up from$59.702 million in Q1 2020, driven by improvements in the electric utility and bank segments[203]. - Net income for common stock rose by 93% to $64.358 million in Q1 2021, compared to$33.420 million in Q1 2020, primarily due to higher net income in the electric utility and bank segments[203]. - Revenues for the three months ended March 31, 2021, were $565 million, a decrease of$33 million (5.5%) compared to $597 million in the same period of 2020[243]. - Operating income increased to$69 million, up $25 million (56.8$44 million in the prior year, primarily due to lower operation and maintenance expenses[243]. - Net income for common stock rose to $43 million, an increase of$19 million (79.2%) compared to $24 million in the same period last year, driven by lower operating expenses and higher electric rates[243]. Sales and Demand - kWh sales decreased by 4.8$8.4 million in provisions for credit losses in Q1 2021 due to improved credit quality and lower net charge-offs[197]. - The provision for credit losses was a negative $8 million in Q1 2021, reflecting an improvement in economic outlook and lower net charge-offs compared to a provision of$10 million in Q1 2020[319]. - Delinquency rates decreased from 0.48% at March 31, 2020, to 0.43% at March 31, 2021, indicating improved credit quality[319]. Investments and Capital Expenditures - For the first three months of 2021, net cash provided by operating activities was $42 million, while net cash used by investing activities was$518 million, primarily due to capital expenditures[230]. - The estimated cost for the initial phase of the Grid Modernization Strategy is approximately $86 million, with$18 million incurred to date as of March 31, 2021[258]. - The estimated cost for the implementation of the Advanced Distribution Management System (ADMS) and field devices over five years is $105 million, with a PUC order pending[259]. Renewable Energy Initiatives - The Utilities exceeded the 2015 Renewable Portfolio Standard (RPS) goal of 30$68 million[288]. Banking Operations - The bank's net interest margin for the first quarter of 2021 was 2.95%, down from 3.12% in the previous quarter[313]. - Interest income for Q1 2021 was $59 million, a decrease of$6 million (10%) from $65 million in Q1 2020, primarily due to lower average loan portfolio yields[319]. - Noninterest income increased by$4 million (27%) to $19 million in Q1 2021, driven by higher mortgage banking income and bank-owned life insurance income[319]. Asset Management - Total assets increased to$8,456,476 thousand as of March 31, 2021, up from $7,230,516 thousand in 2020, representing a growth of 17.0$2,600,303 thousand as of March 31, 2021, up from $2,197,364 thousand in December 2020, primarily due to excess liquidity purchases[326]. - ASB's total assets increased to$8.7 billion, up 4% from $8.4 billion on December 31, 2020[340]. Regulatory and Credit Ratings - Standard & Poor's revised HEI's outlook to stable and affirmed the "BBB-" issuer credit rating as of March 17, 2021[228]. - S&P upgraded Hawaiian Electric's issuer credit rating to "BBB" from "BBB-" on March 17, 2021, reflecting strong financial measures and regulatory protections[297]. - Moody's upgraded Hawaiian Electric's senior unsecured rating to "Baa1" from "Baa2" on April 20, 2021, due to progress in renewable resource integration[298].