Full Year
2023 Results Include
- Core Businesses Continue to Perform Well
-
Utility Continuing to Progress Resilience Work in
West Maui - ASB’s Balance Sheet Repositioning Strengthens Balance Sheet and Positions Bank for Improved Net Interest Margin and Profitability
- Strong Credit Quality and Capital Position at ASB
“Although 2023 was one of the most challenging years ever for our company and the communities we serve, I am encouraged by the collaborative efforts of so many in our state to prioritize Maui’s recovery following the devastating August wildfires. Our hearts continue to be with the people of
“Our core businesses delivered solid results under challenging circumstances, and both the utility and bank remain focused on supporting our communities and customers. The utility is continuing to execute on its plans to modernize its generation system and make our electric grids more resilient.
“The bank continues to be well-positioned with strong capital, excellent credit quality, lending capacity and ample liquidity. In addition, the sale of investment securities executed in the fourth quarter further positions ASB for improved profitability and net interest margin while strengthening the balance sheet.”
Full Year Results:
Hawaiian Electric’s full-year net income was
-
$34 million higher revenues, including$27 million from the annual revenue adjustment (ARA) mechanism,$5 million from the fossil fuel cost risk-sharing mechanism and$4 million from the major project interim recovery (MPIR) mechanism, partially offset by lower performance incentive mechanism revenue; -
$6 million higher allowance for funds used during construction (AFUDC) related to increased capital expenditures; -
$4 million in higher interest income; and -
$2 million in research and development tax credits.
These items were offset by the following after-tax items:
-
$28 million in higher operations and maintenance (O&M) expenses, including$8 million of labor and associated costs for theMaui windstorm and wildfire response. The remaining increase in O&M included higher transmission and distribution maintenance, and higher outside services costs; -
$7 million higher interest expense due to increased borrowings; and -
$6 million higher depreciation expense due to increasing investments to integrate more renewable energy and improve customer reliability and system efficiency.
Excluding incremental after-tax
Fourth Quarter Results:
Hawaiian Electric’s net income for the fourth quarter of 2023 was
Utility Dividend Declaration
On
AMERICAN SAVINGS BANK EARNINGS
Full Year Results:
ASB’s full year 2023 net income was
Net interest income was
As of
-
Total earning assets were
$9.2 billion , up 0.50%; -
Total loans were
$6.2 billion , up 3.4%; and -
Total deposits were
$8.1 billion , approximately flat.
The average cost of funds was 0.93% for the full year 2023, 77 basis points higher than the prior year as higher interest rates and a shift in funding mix increased funding costs.
ASB’s return on average equity for the full year 2023 was 11.0% compared to 14.1% in 2022. Return on average assets for the full year was 0.55% in 2023 compared to 0.86% in 2022. Core return on average equity and core return on average assets4 were 14.9% and 0.75%, respectively.
Fourth Quarter Results:
Net income for the fourth quarter of 2023 was
For the fourth quarter 2023, return on average equity was 2.7%, compared to 15.7% in the fourth quarter of 2022. Core return on average equity5 for the quarter was 13.7%. Return on average assets was 0.13% for the fourth quarter of 2023, compared to 0.76% in the same quarter last year. Core return on average assets5 was 0.67%. Please refer to ASB’s news release issued on
HOLDING AND OTHER COMPANIES
The holding and other companies’ net loss was
EARNINGS RELEASE, WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS
HEI will conduct a webcast and conference call to review its fourth quarter and full year 2023 consolidated financial results today at
To listen to the conference call, dial 1-888-660-6377 (
A replay will be available online and via phone. The online replay will be available on HEI’s website about two hours after the event. The audio replay will also be available about two hours after the event through
Investors may also wish to refer to the
_________________________
1 Core net income, core EPS, core return on average equity and core return on average assets are non-GAAP measures which, for 2023, exclude
2 Utility amounts indicated as after-tax in this earnings release are based upon adjusting items using a current year composite statutory tax rate of 25.75%.
3 Refer to footnote 1.
4 Refer to footnote 1.
5 Refer to footnote 1.
ABOUT HEI
The HEI family of companies provides the energy and financial services that empower much of the economic and community activity of
NON-GAAP MEASURES
Core net income is a non-GAAP measure which, for 2023, excludes
FORWARD-LOOKING STATEMENTS
This release may 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, 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.
Forward-looking statements in this release should be read in conjunction with the “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” discussions (which are incorporated by reference herein) set forth in HEI’s Annual Report on Form 10-K for the year ended
CONSOLIDATED STATEMENTS OF INCOME DATA (Unaudited) |
||||||||||||||||
|
|
Three months ended
|
|
Years ended
|
||||||||||||
(in thousands, except per share amounts) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
|
|
|
|
|
|
|
|
||||||||
Electric utility |
|
$ |
854,106 |
|
|
$ |
924,951 |
|
|
$ |
3,269,521 |
|
|
$ |
3,408,587 |
|
Bank |
|
|
102,947 |
|
|
|
89,218 |
|
|
|
394,663 |
|
|
|
321,068 |
|
Other |
|
|
4,298 |
|
|
|
4,944 |
|
|
|
17,982 |
|
|
|
12,330 |
|
Total revenues |
|
|
961,351 |
|
|
|
1,019,113 |
|
|
|
3,682,166 |
|
|
|
3,741,985 |
|
Expenses |
|
|
|
|
|
|
|
|
||||||||
Electric utility |
|
|
768,682 |
|
|
|
849,558 |
|
|
|
2,967,363 |
|
|
|
3,109,396 |
|
Bank |
|
|
86,282 |
|
|
|
66,753 |
|
|
|
317,051 |
|
|
|
219,550 |
|
Other |
|
|
10,411 |
|
|
|
9,788 |
|
|
|
45,148 |
|
|
|
31,966 |
|
Total expenses |
|
|
865,375 |
|
|
|
926,099 |
|
|
|
3,329,562 |
|
|
|
3,360,912 |
|
Operating income (loss) |
|
|
|
|
|
|
|
|
||||||||
Electric utility |
|
|
85,424 |
|
|
|
75,393 |
|
|
|
302,158 |
|
|
|
299,191 |
|
Bank |
|
|
16,665 |
|
|
|
22,465 |
|
|
|
77,612 |
|
|
|
101,518 |
|
Other |
|
|
(6,113 |
) |
|
|
(4,844 |
) |
|
|
(27,166 |
) |
|
|
(19,636 |
) |
Total operating income |
|
|
95,976 |
|
|
|
93,014 |
|
|
|
352,604 |
|
|
|
381,073 |
|
Retirement defined benefits credit—other than service costs |
|
|
1,207 |
|
|
|
883 |
|
|
|
4,768 |
|
|
|
4,411 |
|
Interest expense, net—other than on deposit liabilities and other bank borrowings |
|
|
(34,273 |
) |
|
|
(27,462 |
) |
|
|
(125,532 |
) |
|
|
(103,402 |
) |
Allowance for borrowed funds used during construction |
|
|
1,403 |
|
|
|
1,015 |
|
|
|
5,201 |
|
|
|
3,416 |
|
Allowance for equity funds used during construction |
|
|
4,091 |
|
|
|
3,143 |
|
|
|
15,164 |
|
|
|
10,574 |
|
Interest income |
|
|
4,125 |
|
|
|
— |
|
|
|
9,105 |
|
|
|
— |
|
Loss on sales of investment securities and gain (loss) on sales of equity-method investment |
|
|
(15,609 |
) |
|
|
— |
|
|
|
(15,609 |
) |
|
|
8,123 |
|
Income before income taxes |
|
|
56,920 |
|
|
|
70,593 |
|
|
|
245,701 |
|
|
|
304,195 |
|
Income taxes |
|
|
7,658 |
|
|
|
12,772 |
|
|
|
44,573 |
|
|
|
61,167 |
|
Net income |
|
|
49,262 |
|
|
|
57,821 |
|
|
|
201,128 |
|
|
|
243,028 |
|
Preferred stock dividends of subsidiaries |
|
|
473 |
|
|
|
473 |
|
|
|
1,890 |
|
|
|
1,890 |
|
Net income for common stock |
|
$ |
48,789 |
|
|
$ |
57,348 |
|
|
$ |
199,238 |
|
|
$ |
241,138 |
|
Basic earnings per common share |
|
$ |
0.44 |
|
|
$ |
0.52 |
|
|
$ |
1.82 |
|
|
$ |
2.20 |
|
Diluted earnings per common share |
|
$ |
0.44 |
|
|
$ |
0.52 |
|
|
$ |
1.81 |
|
|
$ |
2.20 |
|
Dividends declared per common share |
|
$ |
— |
|
|
$ |
0.35 |
|
|
$ |
1.08 |
|
|
$ |
1.40 |
|
Weighted-average number of common shares outstanding |
|
|
110,134 |
|
|
|
109,471 |
|
|
|
109,739 |
|
|
|
109,434 |
|
Weighted-average shares assuming dilution |
|
|
110,301 |
|
|
|
109,774 |
|
|
|
110,038 |
|
|
|
109,778 |
|
Net income (loss) for common stock by segment |
|
|
|
|
|
|
|
|
||||||||
Electric utility |
|
$ |
58,183 |
|
|
$ |
48,621 |
|
|
$ |
193,952 |
|
|
$ |
188,929 |
|
Bank |
|
|
3,231 |
|
|
|
17,897 |
|
|
|
53,362 |
|
|
|
79,989 |
|
Other |
|
|
(12,625 |
) |
|
|
(9,170 |
) |
|
|
(48,076 |
) |
|
|
(27,780 |
) |
Net income for common stock |
|
$ |
48,789 |
|
|
$ |
57,348 |
|
|
$ |
199,238 |
|
|
$ |
241,138 |
|
Comprehensive income (loss) attributable to HEI |
|
$ |
117,463 |
|
|
$ |
74,864 |
|
|
$ |
245,916 |
|
|
$ |
(42,357 |
) |
Return on average common equity (%) (twelve months ended) |
|
|
|
|
|
|
8.8 |
|
|
|
10.5 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the
CONSOLIDATED STATEMENTS OF INCOME DATA (Unaudited) |
||||||||||||||||
|
|
Three months ended
|
|
Years ended
|
||||||||||||
($ in thousands, except per barrel amounts) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
|
$ |
854,106 |
|
|
$ |
924,951 |
|
|
$ |
3,269,521 |
|
|
$ |
3,408,587 |
|
Expenses |
|
|
|
|
|
|
|
|
||||||||
Fuel oil |
|
|
329,728 |
|
|
|
391,071 |
|
|
|
1,211,420 |
|
|
|
1,265,614 |
|
Purchased power |
|
|
172,779 |
|
|
|
186,757 |
|
|
|
671,769 |
|
|
|
793,584 |
|
Other operation and maintenance |
|
|
126,373 |
|
|
|
126,342 |
|
|
|
533,557 |
|
|
|
497,601 |
|
Depreciation |
|
|
60,924 |
|
|
|
59,503 |
|
|
|
243,705 |
|
|
|
235,424 |
|
Taxes, other than income taxes |
|
|
78,878 |
|
|
|
85,885 |
|
|
|
306,912 |
|
|
|
317,173 |
|
Total expenses |
|
|
768,682 |
|
|
|
849,558 |
|
|
|
2,967,363 |
|
|
|
3,109,396 |
|
Operating income |
|
|
85,424 |
|
|
|
75,393 |
|
|
|
302,158 |
|
|
|
299,191 |
|
Allowance for equity funds used during construction |
|
|
4,091 |
|
|
|
3,143 |
|
|
|
15,164 |
|
|
|
10,574 |
|
Retirement defined benefits credit—other than service costs |
|
|
1,076 |
|
|
|
959 |
|
|
|
4,303 |
|
|
|
3,835 |
|
Interest expense and other charges, net |
|
|
(22,575 |
) |
|
|
(19,681 |
) |
|
|
(86,140 |
) |
|
|
(76,416 |
) |
Allowance for borrowed funds used during construction |
|
|
1,403 |
|
|
|
1,015 |
|
|
|
5,201 |
|
|
|
3,416 |
|
Interest income |
|
|
2,330 |
|
|
|
— |
|
|
|
6,454 |
|
|
|
— |
|
Income before income taxes |
|
|
71,749 |
|
|
|
60,829 |
|
|
|
247,140 |
|
|
|
240,600 |
|
Income taxes |
|
|
13,067 |
|
|
|
11,709 |
|
|
|
51,193 |
|
|
|
49,676 |
|
Net income |
|
|
58,682 |
|
|
|
49,120 |
|
|
|
195,947 |
|
|
|
190,924 |
|
Preferred stock dividends of subsidiaries |
|
|
229 |
|
|
|
229 |
|
|
|
915 |
|
|
|
915 |
|
Net income attributable to |
|
|
58,453 |
|
|
|
48,891 |
|
|
|
195,032 |
|
|
|
190,009 |
|
Preferred stock dividends of |
|
|
270 |
|
|
|
270 |
|
|
|
1,080 |
|
|
|
1,080 |
|
Net income for common stock |
|
$ |
58,183 |
|
|
$ |
48,621 |
|
|
$ |
193,952 |
|
|
$ |
188,929 |
|
Comprehensive income attributable to |
|
$ |
58,337 |
|
|
$ |
54,552 |
|
|
$ |
193,940 |
|
|
$ |
195,070 |
|
OTHER ELECTRIC UTILITY INFORMATION |
|
|
|
|
|
|
|
|
||||||||
Kilowatthour sales (millions) |
|
|
|
|
|
|
|
|
||||||||
|
|
|
1,604 |
|
|
|
1,603 |
|
|
|
6,138 |
|
|
|
6,212 |
|
|
|
|
272 |
|
|
|
269 |
|
|
|
1,043 |
|
|
|
1,053 |
|
|
|
|
264 |
|
|
|
282 |
|
|
|
1,046 |
|
|
|
1,089 |
|
|
|
|
2,140 |
|
|
|
2,154 |
|
|
|
8,227 |
|
|
|
8,354 |
|
Average fuel oil cost per barrel |
|
$ |
132.47 |
|
|
$ |
152.05 |
|
|
$ |
126.73 |
|
|
$ |
141.49 |
|
Return on average common equity (%) (twelve months ended)1 |
|
|
|
|
|
|
8.2 |
|
|
|
8.2 |
|
||||
1 Simple average. |
This information should be read in conjunction with the consolidated financial statements and the notes thereto in
STATEMENTS OF INCOME DATA (Unaudited) |
||||||||||||||||||||
|
|
Three months ended |
|
Years ended |
||||||||||||||||
(in thousands) |
|
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
||||||
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and fees on loans |
|
$ |
72,340 |
|
$ |
71,540 |
|
$ |
60,331 |
|
$ |
276,688 |
|
$ |
207,830 |
|||||
Interest and dividends on investment securities |
|
|
15,587 |
|
|
|
14,096 |
|
|
|
14,315 |
|
|
|
58,095 |
|
|
|
58,044 |
|
Total interest and dividend income |
|
|
87,927 |
|
|
|
85,636 |
|
|
|
74,646 |
|
|
|
334,783 |
|
|
|
265,874 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest on deposit liabilities |
|
|
17,961 |
|
|
|
14,446 |
|
|
|
3,755 |
|
|
|
48,905 |
|
|
|
7,327 |
|
Interest on other borrowings |
|
|
8,721 |
|
|
|
8,598 |
|
|
|
4,775 |
|
|
|
33,892 |
|
|
|
5,974 |
|
Total interest expense |
|
|
26,682 |
|
|
|
23,044 |
|
|
|
8,530 |
|
|
|
82,797 |
|
|
|
13,301 |
|
Net interest income |
|
|
61,245 |
|
|
|
62,592 |
|
|
|
66,116 |
|
|
|
251,986 |
|
|
|
252,573 |
|
Provision for credit losses |
|
|
304 |
|
|
|
8,835 |
|
|
|
2,729 |
|
|
|
10,357 |
|
|
|
2,037 |
|
Net interest income after provision for credit losses |
|
|
60,941 |
|
|
|
53,757 |
|
|
|
63,387 |
|
|
|
241,629 |
|
|
|
250,536 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
||||||||||
Fees from other financial services |
|
|
4,643 |
|
|
|
4,703 |
|
|
|
4,764 |
|
|
|
19,034 |
|
|
|
19,830 |
|
Fee income on deposit liabilities |
|
|
5,104 |
|
|
|
4,924 |
|
|
|
4,640 |
|
|
|
19,131 |
|
|
|
18,762 |
|
Fee income on other financial products |
|
|
2,664 |
|
|
|
2,440 |
|
|
|
2,628 |
|
|
|
10,616 |
|
|
|
10,291 |
|
Bank-owned life insurance |
|
|
1,707 |
|
|
|
2,303 |
|
|
|
1,872 |
|
|
|
7,390 |
|
|
|
2,533 |
|
Mortgage banking income |
|
|
209 |
|
|
|
341 |
|
|
|
62 |
|
|
|
910 |
|
|
|
1,692 |
|
Gain on sale of real estate |
|
|
— |
|
|
|
— |
|
|
|
776 |
|
|
|
495 |
|
|
|
1,778 |
|
Loss on sale of investment securities, net |
|
|
(14,965 |
) |
|
|
— |
|
|
|
— |
|
|
|
(14,965 |
) |
|
|
— |
|
Other income, net |
|
|
693 |
|
|
|
627 |
|
|
|
606 |
|
|
|
2,799 |
|
|
|
2,086 |
|
Total noninterest income |
|
|
55 |
|
|
|
15,338 |
|
|
|
15,348 |
|
|
|
45,410 |
|
|
|
56,972 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and employee benefits |
|
|
28,797 |
|
|
|
29,902 |
|
|
|
30,361 |
|
|
|
118,297 |
|
|
|
113,839 |
|
Occupancy |
|
|
5,422 |
|
|
|
5,154 |
|
|
|
7,030 |
|
|
|
21,703 |
|
|
|
24,026 |
|
Data processing |
|
|
5,305 |
|
|
|
5,133 |
|
|
|
4,537 |
|
|
|
20,545 |
|
|
|
17,681 |
|
Services |
|
|
5,032 |
|
|
|
3,627 |
|
|
|
2,967 |
|
|
|
13,943 |
|
|
|
10,679 |
|
Equipment |
|
|
3,114 |
|
|
|
3,125 |
|
|
|
2,937 |
|
|
|
11,842 |
|
|
|
10,100 |
|
Office supplies, printing and postage |
|
|
1,019 |
|
|
|
1,022 |
|
|
|
1,142 |
|
|
|
4,315 |
|
|
|
4,398 |
|
Marketing |
|
|
1,167 |
|
|
|
984 |
|
|
|
1,091 |
|
|
|
4,001 |
|
|
|
3,968 |
|
Other expense |
|
|
9,250 |
|
|
|
7,399 |
|
|
|
6,034 |
|
|
|
28,992 |
|
|
|
20,576 |
|
Total noninterest expense |
|
|
59,106 |
|
|
|
56,346 |
|
|
|
56,099 |
|
|
|
223,638 |
|
|
|
205,267 |
|
Income before income taxes |
|
|
1,890 |
|
|
|
12,749 |
|
|
|
22,636 |
|
|
|
63,401 |
|
|
|
102,241 |
|
Income taxes |
|
|
(1,341 |
) |
|
|
1,384 |
|
|
|
4,739 |
|
|
|
10,039 |
|
|
|
22,252 |
|
Net income |
|
$ |
3,231 |
|
|
$ |
11,365 |
|
|
$ |
17,897 |
|
|
$ |
53,362 |
|
|
$ |
79,989 |
|
Comprehensive income (loss) |
|
$ |
70,585 |
|
|
$ |
(22,866 |
) |
|
$ |
29,282 |
|
|
$ |
97,705 |
|
|
$ |
(218,844 |
) |
OTHER BANK INFORMATION (annualized %, except as of period end) |
|
|
|
|
|
|
|
|
||||||||||||
Return on average assets |
|
|
0.13 |
|
|
|
0.47 |
|
|
|
0.76 |
|
|
|
0.55 |
|
|
|
0.86 |
|
Return on average equity |
|
|
2.74 |
|
|
|
9.19 |
|
|
|
15.73 |
|
|
|
10.98 |
|
|
|
14.08 |
|
Return on average tangible common equity |
|
|
3.32 |
|
|
|
11.02 |
|
|
|
19.20 |
|
|
|
13.22 |
|
|
|
16.46 |
|
Net interest margin |
|
|
2.63 |
|
|
|
2.70 |
|
|
|
2.91 |
|
|
|
2.74 |
|
|
|
2.89 |
|
Efficiency ratio |
|
|
96.42 |
|
|
|
72.30 |
|
|
|
68.86 |
|
|
|
75.20 |
|
|
|
66.31 |
|
Net charge-offs to average loans outstanding |
|
|
0.15 |
|
|
|
0.07 |
|
|
|
0.06 |
|
|
|
0.12 |
|
|
|
0.03 |
|
As of period end |
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans to loans receivable held for investment |
|
|
0.46 |
|
|
|
0.16 |
|
|
|
0.28 |
|
|
|
|
|
||||
Allowance for credit losses to loans outstanding |
|
|
1.20 |
|
|
|
1.23 |
|
|
|
1.21 |
|
|
|
|
|
||||
Tangible common equity to tangible assets |
|
|
4.7 |
|
|
|
3.9 |
|
|
|
4.1 |
|
|
|
|
|
||||
Tier-1 leverage ratio |
|
|
7.7 |
|
|
|
7.7 |
|
|
|
7.8 |
|
|
|
|
|
||||
Dividend paid to HEI (via |
|
$ |
— |
|
|
$ |
14.0 |
|
|
$ |
10.0 |
|
|
$ |
39.0 |
|
|
$ |
42.0 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the
Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures
HEI,
The reconciling adjustments from GAAP1 earnings to core earnings for 2023 are limited to the costs related to the recent
Reconciliation of GAAP1 to non-GAAP Measures
Unaudited |
||||||||||||
(in thousands) |
|
Three months ended
|
|
Year ended
|
|
Year ended
|
||||||
|
|
|
|
|
|
|
||||||
Pretax expenses: |
|
|
|
|
|
|
||||||
Legal expenses |
|
$ |
24,125 |
|
|
$ |
34,876 |
|
|
$ |
— |
|
Outside services expenses |
|
|
8,688 |
|
|
|
14,822 |
|
|
|
— |
|
Provision for credit losses |
|
|
— |
|
|
|
5,900 |
|
|
|
— |
|
One `Ohana Initiative Contribution |
|
|
— |
|
|
|
75,000 |
|
|
|
— |
|
Other expenses |
|
|
1,343 |
|
|
|
5,185 |
|
|
|
— |
|
Interest expenses |
|
|
1,645 |
|
|
|
2,600 |
|
|
|
— |
|
Pretax expenses |
|
|
35,801 |
|
|
|
138,383 |
|
|
|
— |
|
Insurance recovery |
|
|
(29,580 |
) |
|
|
(104,580 |
) |
|
|
— |
|
Deferral of cost |
|
|
(14,692 |
) |
|
|
(14,692 |
) |
|
|
— |
|
Wildfire-related expenses, excluding insurance recovery and deferral |
|
|
(8,471 |
) |
|
|
19,111 |
|
|
|
— |
|
Pretax loss on sale of investment securities |
|
|
14,965 |
|
|
|
14,965 |
|
|
|
— |
|
Gain on sale of equity method investment at Pacific Current |
|
|
— |
|
|
|
— |
|
|
|
(8,123 |
) |
Income tax benefits2 |
|
|
(1,858 |
) |
|
|
(9,050 |
) |
|
|
1,947 |
|
After-tax adjustments |
|
$ |
4,636 |
|
|
$ |
25,026 |
|
|
$ |
(6,176 |
) |
HEI consolidated net income |
|
|
|
|
|
|
||||||
GAAP net income (as reported) |
|
$ |
48,789 |
|
|
$ |
199,238 |
|
|
$ |
241,138 |
|
Excluding special items related to the |
|
|
|
|
|
|
||||||
Legal expenses |
|
|
17,909 |
|
|
|
25,886 |
|
|
|
— |
|
Outside services expenses |
|
|
6,430 |
|
|
|
10,976 |
|
|
|
— |
|
Provision for credit losses |
|
|
— |
|
|
|
4,319 |
|
|
|
— |
|
One `Ohana Initiative Contribution |
|
|
— |
|
|
|
55,688 |
|
|
|
— |
|
Other expenses |
|
|
993 |
|
|
|
3,832 |
|
|
|
— |
|
Interest expenses |
|
|
1,222 |
|
|
|
1,931 |
|
|
|
— |
|
After tax expenses |
|
|
26,554 |
|
|
|
102,632 |
|
|
|
— |
|
Insurance recovery |
|
|
(21,963 |
) |
|
|
(77,651 |
) |
|
|
— |
|
Deferral of cost |
|
|
(10,909 |
) |
|
|
(10,909 |
) |
|
|
— |
|
|
|
|
(6,318 |
) |
|
|
14,072 |
|
|
|
— |
|
Gain on sale of equity method investment (after tax) |
|
|
— |
|
|
|
— |
|
|
|
(6,176 |
) |
Loss on sale of investment securities (after tax) |
|
|
10,954 |
|
|
|
10,954 |
|
|
|
— |
|
Total core net income adjustments (after tax) |
|
|
4,636 |
|
|
|
25,026 |
|
|
|
(6,176 |
) |
Non-GAAP (core) net income |
|
$ |
53,425 |
|
|
$ |
224,264 |
|
|
$ |
234,962 |
|
GAAP Diluted earnings per share (as reported) |
|
$ |
0.44 |
|
|
$ |
1.81 |
|
|
$ |
2.20 |
|
Non-GAAP (core) Diluted earnings per share |
|
$ |
0.48 |
|
|
$ |
2.04 |
|
|
$ |
2.14 |
|
Years ended |
|
|
2023 |
|
|
|
2022 |
|
Ratios (%) |
|
|
|
|
||||
Based on GAAP1 |
|
|
|
|
||||
Return on average equity |
|
8.8 |
|
10.5 |
||||
Based on Non-GAAP (core) |
|
|
|
|
||||
Return on average equity |
|
|
9.9 |
|
|
|
10.2 |
|
1 |
|
Accounting principles generally accepted in |
2 |
|
Current year composite statutory tax rate of 25.75% is used for Utility and corporate amounts and current year composite statutory tax rate of 26.80% is used for ASB amounts. |
Note: Other segment (Holding and Other Companies) wildfire-related expenses (legal, outside services and other) are included in “Expenses-Other” and interest expense is included in “Interest expense, net—other than on deposit liabilities and other bank borrowings” on the HEI and subsidiaries’ Consolidated Statements of Income Data.
Reconciliation of GAAP 1 to non-GAAP Measures
Unaudited |
||||||||
(in thousands) |
|
Three months ended
|
|
Year ended
|
||||
|
|
|
|
|
||||
Pretax expenses: |
|
|
|
|
||||
Legal expenses2 |
|
$ |
18,486 |
|
|
$ |
24,737 |
|
Outside services expenses2 |
|
|
5,826 |
|
|
|
10,532 |
|
One `Ohana Initiative Contribution |
|
|
— |
|
|
|
75,000 |
|
Other expenses2 |
|
|
834 |
|
|
|
3,316 |
|
Interest expenses3 |
|
|
720 |
|
|
|
1,223 |
|
Pretax expenses |
|
|
25,866 |
|
|
|
114,808 |
|
Insurance recovery |
|
|
(23,613 |
) |
|
|
(98,613 |
) |
Deferral of cost |
|
|
(14,692 |
) |
|
|
(14,692 |
) |
Total |
|
|
(12,439 |
) |
|
|
1,503 |
|
Income tax benefits4 |
|
|
3,203 |
|
|
|
(387 |
) |
After-tax expenses |
|
$ |
(9,236 |
) |
|
$ |
1,116 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
GAAP net income (as reported) |
|
$ |
58,183 |
|
|
$ |
193,952 |
|
Excluding special items related to the |
|
|
|
|
||||
Legal expenses |
|
|
13,726 |
|
|
|
18,367 |
|
Outside services expenses |
|
|
4,326 |
|
|
|
7,820 |
|
One `Ohana Initiative Contribution |
|
|
— |
|
|
|
55,688 |
|
Other expenses |
|
|
619 |
|
|
|
2,462 |
|
Interest expenses |
|
|
534 |
|
|
|
908 |
|
|
|
|
19,205 |
|
|
|
85,245 |
|
Insurance recovery (after tax) |
|
|
(17,532 |
) |
|
|
(73,220 |
) |
Deferral of cost (after tax) |
|
|
(10,909 |
) |
|
|
(10,909 |
) |
Total |
|
|
(9,236 |
) |
|
|
1,116 |
|
Non-GAAP (core) net income |
|
$ |
48,947 |
|
|
$ |
195,068 |
|
Years ended |
|
|
2023 |
|
|
|
2022 |
|
Ratios (%) |
|
|
|
|
||||
Based on GAAP1 |
|
|
|
|
||||
Return on average equity |
|
8.2 |
|
8.2 |
||||
Based on Non-GAAP (core) |
|
|
|
|
||||
Return on average equity |
|
|
8.2 |
|
|
|
8.2 |
|
1 |
|
Accounting principles generally accepted in |
2 |
|
Legal, outside services and other are included in “Other operation and maintenance” on the |
3 |
|
Interest expense is included in “Interest expense and other charges, net” on the |
4 |
|
Current year composite statutory tax rate of 25.75% is used for Utility amounts. |
Reconciliation of GAAP1 to non-GAAP Measures
Unaudited |
||||||||
(in thousands) |
|
Three months ended
|
|
Year ended
|
||||
|
|
|
|
|
||||
Pretax expenses: |
|
|
|
|
||||
Provision for credit losses |
|
$ |
— |
|
|
$ |
5,900 |
|
Professional services expense |
|
|
2,405 |
|
|
|
3,705 |
|
Other expenses |
|
|
309 |
|
|
|
1,666 |
|
Pretax Maui wildfire-related costs |
|
|
2,714 |
|
|
|
11,271 |
|
Pretax loss on sale of investment securities |
|
|
14,965 |
|
|
|
14,965 |
|
Income tax benefits |
|
|
(4,738 |
) |
|
|
(7,031 |
) |
After-tax expenses |
|
$ |
12,941 |
|
|
$ |
19,205 |
|
ASB net income |
|
|
|
|
||||
GAAP (as reported) |
|
$ |
3,231 |
|
|
$ |
53,362 |
|
Excluding expense related to |
|
|
|
|
||||
Provision for credit losses |
|
|
— |
|
|
|
4,319 |
|
Professional services expense |
|
|
1,760 |
|
|
|
2,712 |
|
Other expenses |
|
|
227 |
|
|
|
1,220 |
|
Loss on sale of investment securities |
|
|
10,954 |
|
|
|
10,954 |
|
|
|
|
12,941 |
|
|
|
19,205 |
|
Non-GAAP (core) net income |
|
$ |
16,172 |
|
|
$ |
72,567 |
|
|
|
Three months ended
|
|
Year ended
|
||||
Ratios (annualized %) |
|
|
|
|
||||
Based on GAAP1 |
|
|
|
|
||||
Return on average assets |
|
0.13 |
|
0.55 |
||||
Return on average equity |
|
|
2.74 |
|
|
|
10.98 |
|
Return on average tangible common equity |
|
|
3.32 |
|
|
|
13.22 |
|
Efficiency ratio |
|
|
96.42 |
|
|
|
75.20 |
|
Based on Non-GAAP (core) |
|
|
|
|
||||
Return on average assets |
|
|
0.67 |
|
|
|
0.75 |
|
Return on average equity |
|
|
13.73 |
|
|
|
14.94 |
|
Return on average tangible common equity |
|
|
16.63 |
|
|
|
17.98 |
|
Efficiency ratio |
|
|
73.94 |
|
|
|
69.88 |
|
1 |
|
Accounting principles generally accepted in |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213153280/en/
Director, Investor Relations
Telephone: (808) 543-7300
E-mail: ir@hei.com
Source: