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Share-based compensation (Tables)
 9 Months Ended
Sep. 30, 2019
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 September 30
 
Nine months ended September 30
(in millions)
 
2019
 
2018
 
2019
 
2018
HEI consolidated
 
 
 
 
 
 
 
 
Share-based compensation expense 1
 
$
2.3

 
$
1.5

 
$
8.1

 
$
5.9

Income tax benefit
 
0.3

 
0.2

 
1.2

 
0.9

Hawaiian Electric consolidated
 
 
 
 
 
 
 
 
Share-based compensation expense 1
 
0.8

 
0.6

 
2.6

 
2.1

Income tax benefit
 
0.1

 
0.1

 
0.5

 
0.4

1 
For the three and nine months ended September 30, 2019 and 2018, 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 September 30
 
Nine months ended September 30
(dollars in millions)
 
2019
 
2018
 
2019
 
2018
Shares granted
 
—

 
—

 
35,580

 
38,821

Fair value
 
$
—

 
$
—

 
$
1.5

 
$
1.3

Income tax benefit
 
—

 
—

 
0.4

 
0.3
Schedule of restricted stock units Information about HEI’s grants of restricted stock units was as follows:
 
Three months ended September 30
 
Nine months ended September 30
 
2019
 
2018
 
2019
 
2018
 
Shares
 
(1)
 
Shares
 
(1)
 
Shares
 
(1)
 
Shares
 
(1)
Outstanding, beginning of period
208,625

 
$
35.28

 
200,856

 
$
33.03

 
200,358

 
$
33.05

 
197,047

 
$
31.53

Granted
1,006


44.16

 
1,789

 
35.61

 
95,565


37.75

 
93,853


34.12

Vested
(101
)
 
36.27

 
—

 
—

 
(76,813
)
 
32.61

 
(75,683
)
 
30.56

Forfeited
(2,889
)
 
35.44

 
(2,287
)
 
32.83

 
(12,469
)
 
34.20

 
(14,859
)
 
32.35

Outstanding, end of period
206,641

 
$
35.32

 
200,358

 
$
33.05

 
206,641

 
$
35.32

 
200,358

 
$
33.05

Total weighted-average grant-date fair value of shares granted (in millions)
$
—

 
 
 
$
0.1

 
 
 
$
3.6

 
 
 
$
3.2

 
 
(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 September 30
 
Nine months ended September 30
 
2019
 
2018
 
2019
 
2018
 
Shares
 
(1)
 
Shares
 
(1)
 
Shares
 
(1)
 
Shares
 
(1)
Outstanding, beginning of period
98,311

 
$
39.61

 
66,177

 
$
38.82

 
65,578

 
$
38.81

 
32,904

 
$
39.51

Granted
568

 
41.07

 
878

 
38.20

 
35,215

 
41.07

 
37,819


38.21

Vested (issued or unissued and cancelled)
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Forfeited
(2,477
)
 
39.64

 
(1,490
)
 
38.85

 
(4,391
)
 
39.19

 
(5,158
)
 
38.84

Outstanding, end of period
96,402

 
$
39.62

 
65,565

 
$
38.81

 
96,402

 
$
39.62

 
65,565

 
$
38.81

Total weighted-average grant-date fair value of shares granted (in millions)
$
—

 
 
 
$
—

 
 
 
$
1.4

 
 
 
$
1.4

 
 
(1)
Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.
Schedule of Long-Term Incentive Program fair value awards granted
Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows:
(dollars in thousands)
 
September 30, 2019

 
December 31, 2018

Unpaid principal balance
 
$
1,232,240

 
$
1,188,514

Weighted average note rate
 
3.99
%
 
3.98
%
Weighted average discount rate
 
9.3
%
 
10.0
%
Weighted average prepayment speed
 
12.8
%
 
6.5
%

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:
 
 
2019

 
2018

Risk-free interest rate
 
2.48
%
 
2.29
%
Expected life in years
 
3

 
3

Expected volatility
 
15.8
%
 
17.0
%
Range of expected volatility for Peer Group
 
15.0% to 73.2%

 
15.1% to 26.2%

Grant date fair value (per share)
 
$41.07
 
$38.20

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
September 30, 2019
 
 
 
 
 
 
 
 
 
 
Home equity line of credit
 
$
199

 
Fair value of property or collateral
 
Appraised value less 7% selling cost
 
 
 
N/A (2)
Residential land
 
25

 
Fair value of property or collateral
 
Appraised value less 7% selling cost
 
 
 
N/A (2)
Commercial
 
3,687

 
Discounted cash flow
 
Expected cash flows
 
3.9%-6.8%
 
4.6%
Total loans
 
$
3,911

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
Home equity line of credit
 
$
77

 
Fair value of property or collateral
 
Appraised value less 7% selling cost
 
 
 
N/A (2)
Total loans
 
$
77

 
 
 
 
 
 
 
 
Real estate acquired in settlement of loans
 
$
186

 
Fair value of property or collateral
 
Appraised value less 7% selling cost
 
 
 
N/A (2)
(1) Represent percent of outstanding principal balance.
(2) N/A - Not applicable. There is one asset in each fair value measurement type.
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 September 30
 
Nine months ended September 30
 
2019
 
2018
 
2019
 
2018
 
Shares
 
(1)
 
Shares
 
(1)
 
Shares
 
(1)
 
Shares
 
(1)
Outstanding, beginning of period
407,090

 
$
35.12

 
264,707

 
$
33.79

 
276,169

 
$
33.80

 
131,616

 
$
33.47

Granted
2,275

 
44.05

 
3,511


35.58

 
140,855

 
37.78

 
151,277


34.12

Vested
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Increase above target
11,131

 
33.49

 
—

 
—

 
11,131

 
33.49

 
—

 
—

Forfeited
(9,911
)
 
35.24

 
(5,958
)
 
33.80

 
(17,570
)
 
34.66

 
(20,633
)
 
33.80

Outstanding, end of period
410,585

 
$
35.12

 
262,260

 
$
33.82

 
410,585

 
$
35.12

 
262,260

 
$
33.82

Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions)
$
0.1

 
 
 
$
0.1

 
 
 
$
5.3

 
 
 
$
5.2

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