Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries HEI Reports 2022 Results By: Hawaiian Electric Industries, Inc. via Business Wire February 14, 2023 at 06:00 AM EST Full Year Net Income of $241.1 million and Diluted Earnings Per Share (EPS) of $2.20 Quarterly Dividend Increased to $0.36 Per Share 2022 Highlights: Net income of $241.1 million and EPS of $2.20 highlight continued strategic benefits from HEI’s combination of companies Hawaiian Electric delivered solid financial performance under first full year of Performance Based Regulation (PBR) and made strong progress on its renewables goals Delivered earnings growth in first full year under new regulatory construct Operated efficiently, managing expenses well in inflationary environment while assisting our customers most impacted by historically high oil prices Ended use of coal for power generation in Hawaii, executing on a key element of the utility’s Climate Change Action Plan and path toward net zero carbon emissions by 2045 Integrated Oahu’s first utility-scale solar-plus-storage project on to the grid, and advanced half a dozen more utility-scale clean energy projects expected to come online by 2024 Selected seven solar projects to be the first to offer community solar for customers who meet low- and moderate-income levels Solid profitability and execution from American Savings Bank Executed on market opportunities and grew loans by 15%, the strongest growth in over a decade Strong credit quality drove 0.03% net charge off ratio (lowest since 2014), and low provision for credit losses ($2 million) Net interest income up 6.5% versus 2021 Net interest margin remained strong at 2.89% Continued strong capital and liquidity position Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported full year 2022 consolidated net income for common stock of $241.1 million and EPS of $2.20 compared to $246.2 million and EPS of $2.25 for 2021. Net income for 2021 reflected bank earnings that were elevated by pandemic recovery-related items, including a net benefit from the release of COVID-related reserves, and Paycheck Protection Program (PPP) fee income. For the fourth quarter of 2022, consolidated net income for common stock was $57.3 million and EPS was $0.52 compared to $54.5 million and EPS of $0.50 for the fourth quarter of 2021. “Our strong results for the year reflect the strategic benefit of our combination of companies,” said Scott Seu, HEI president and CEO. “The utility delivered good results, growing net income despite challenges from multiple different macroeconomic pressures, while continuing to significantly advance our clean energy transition and support customers experiencing financial difficulties. “Our bank results reflect strong execution by our team, solid credit quality and a healthy Hawaii economy. Excluding unique pandemic recovery-related items that benefited the bank’s 2021 net income, we saw meaningful growth in earnings year over year. We also saw the strongest loan growth in recent memory, reflecting great work by the ASB team and the resilience of Hawaii’s consumers and businesses. We continued to see positive credit trends despite the inflationary environment, and rising interest rates benefited net interest margin and profitability,” said Seu. HAWAIIAN ELECTRIC COMPANY EARNINGS1 Full Year Results: Hawaiian Electric Company’s (Hawaiian Electric) full-year net income was $188.9 million, compared to $177.6 million in 2021, with the increase primarily driven by the following after-tax items: $28 million higher net revenues from Public Utilities Commission approved regulatory mechanisms. This included $25 million from the annual revenue adjustment (ARA) mechanism, and $3 million from recovery under the major project interim recovery (MPIR) mechanism; $4 million higher other fee revenue; $1 million higher allowance for funds used during construction (AFUDC); and $1 million due to the reset of heat rate requirements leading to lower penalties for fuel efficiency at our Hawaii Island utility. These items were partially offset by the following after-tax items: $13 million higher operation and maintenance expenses, driven by increased generating station maintenance, higher bad debt expense and increased transmission and distribution preventative and corrective maintenance; $4 million from higher depreciation expense due to increasing investments to integrate more renewable energy and improve customer reliability and system efficiency; $3 million higher interest expense due to higher rates and borrowings, which, among other things, helped support the interest-free payment plan program for customers facing financial hardship; and $2 million in net tax adjustments due to tax credit benefits recognized in the third quarter of 2021. Fourth Quarter Results: Hawaiian Electric’s net income for the fourth quarter of 2022 was $48.6 million, compared to $42.0 million in the fourth quarter of 2021, with the variance primarily driven by the following after-tax items: $6 million higher ARA and MPIR revenues and $1 million higher AFUDC. These items were partially offset by higher depreciation, higher interest expense and worse fuel efficiency due to the operating demands of the system to ensure reliability during the quarter. AMERICAN SAVINGS BANK EARNINGS Full Year Results: American Savings Bank’s (ASB) full year 2022 net income was $80.0 million, compared to $101.2 million in 2021. Net income for 2021 reflected a net benefit of $25.8 million from the release of COVID-related reserves, compared to an expense totaling $2.0 million in 2022 (pre-tax). Net income for 2021 also included $14.3 million in PPP fee income, compared to $2.9 million in PPP fee income in 2022 (pre-tax). Net interest income was $252.6 million in 2022 compared to $237.2 million in 2021. The increase in net interest income for the year was primarily due to higher yields on loans and investment securities, strong loan growth across the entire portfolio and higher balances of investment securities. Noninterest income for 2022 was $57.0 million compared to $64.7 million in 2021. The decrease in noninterest income was primarily due to lower mortgage banking income, lower bank-owned life insurance (BOLI) income and lower fees from other financial services, partially offset by higher fee income on deposit liabilities, gains on sales of real estate and fee income on other financial products. Strong loan growth during the year required additional credit loss reserves, but those additional reserves were partially offset by provision releases due to favorable credit trends. The provision for credit losses for 2022 was $2.0 million compared to a negative provision for credit losses of $25.8 million in 2021. Noninterest expense for 2022 was $205.3 million compared to $197.2 million in 2021. The increase in noninterest expense was driven by a pension accounting change that resulted in lower pension expense in 2021, and higher occupancy costs in 2022 primarily from the write-off of leases related to branch closures. As of December 31, 2022 and compared to December 31, 2021: Total earning assets were $9.1 billion, up 7.2%; Total loans were $6.0 billion, up 15%; and Total deposits were $8.2 billion, a decrease of 0.03%. The average cost of funds was 0.16% for the full year 2022, 10 basis points higher than the prior year. ASB’s return on average equity for the full year 2022 was 14.1% compared to 13.8% in 2021. Return on average assets for the full year was 0.86% in 2022 compared to 1.15% in 2021. Fourth Quarter Results: Net income for the fourth quarter of 2022 was $17.9 million, compared to $22.1 million in the fourth quarter of 2021. Results for the fourth quarter of 2022 included a provision for credit losses (expense) of $2.7 million compared to a negative provision for credit losses (benefit) of $3.5 million in the fourth quarter of 2021. For the fourth quarter of 2022, return on average equity was 15.7%, compared to 12.1% in the fourth quarter of 2021. Return on average assets was 0.76% for the fourth quarter of 2022, compared to 0.97% in the same quarter last year. Please refer to ASB’s news release issued on January 30, 2023 for additional information on ASB. HOLDING AND OTHER COMPANIES The holding and other companies’ net loss was $27.8 million in 2022 compared to $32.7 million in 2021. The lower net loss for the year was primarily due to a $6.2 million after-tax gain on sale of an equity-method investment at Pacific Current and lower compensation expense, partially offset by higher interest expense. The fourth quarter net loss of $9.2 million was $0.5 million lower than the prior year quarter, primarily due to lower executive compensation expense, partially offset by higher interest expense. BOARD INCREASES QUARTERLY DIVIDEND On February 10, 2023, HEI announced that the Board of Directors increased the quarterly cash dividend from $0.35 to $0.36 per share, payable on March 10, 2023 to shareholders of record at the close of business on February 23, 2023 (ex-dividend date is February 22, 2023). This quarterly dividend is equivalent to an annual rate of $1.44 per share. Dividends have been paid on an uninterrupted basis since 1901. At the indicated annual dividend rate and based on the closing price per share on February 10, 2023 of $42.41, HEI’s dividend yield is 3.4%. WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS AND 2022 GUIDANCE HEI will conduct a webcast and conference call to review its consolidated results and 2023 earnings guidance and outlook on Tuesday, February 14, 2023 at 11:15 a.m. Hawaii time (4:15 p.m. Eastern). To listen to the conference call, dial 1-844-200-6205 (U.S.) or +1-929-526-1599 (international) and enter passcode 864795. Parties may also access presentation materials and/or listen to the conference call by visiting the conference call link on HEI’s website at www.hei.com under “Investor Relations,” sub-heading “News and Events — Events and Presentations.” 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. An audio replay will also be available about two hours after the event through February 28, 2023. To access the audio replay, dial 1-866-813-9403 (U.S.) or +44-204-525-0658 (international) and enter passcode 326110. HEI and Hawaiian Electric Company, Inc. (Hawaiian Electric) intend to continue to use HEI’s website, www.hei.com, as a means of disclosing additional information; such disclosures will be included in the Investor Relations section of the website. Accordingly, investors should routinely monitor the Investor Relations section of HEI’s website, in addition to following HEI’s, Hawaiian Electric’s and ASB’s press releases, HEI’s and Hawaiian Electric’s Securities and Exchange Commission (SEC) filings and HEI’s public conference calls and webcasts. Investors may sign up to receive e-mail alerts via the “Investor Relations” section of the website. The information on HEI’s website is not incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings unless, and except to the extent, specifically incorporated by reference. Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at dms.puc.hawaii.gov/dms to review documents filed with, and issued by, the PUC. No information on the PUC website is incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings. ABOUT HEI The HEI family of companies provides the energy and financial services that empower much of the economic and community activity of Hawaii. HEI’s electric utility, Hawaiian Electric, supplies power to approximately 95% of Hawaii’s population and is undertaking an ambitious effort to decarbonize its operations and the broader state economy. Its banking subsidiary, ASB, is one of Hawaii’s largest financial institutions, providing a wide array of banking and other financial services and working to advance economic growth, affordability and financial fitness. HEI also helps advance Hawaii’s sustainability goals through investments by its non-regulated subsidiary, Pacific Current. For more information, visit www.hei.com. 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 December 31, 2021 and HEI’s other periodic reports that discuss important factors that could cause HEI’s results to differ materially from those anticipated in such statements. These 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 and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. _______________________ 1 Note: 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%. Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME DATA (Unaudited) Three months ended December 31 Years ended December 31 (in thousands, except per share amounts) 2022 2021 2022 2021 Revenues Electric utility $ 924,951 $ 693,394 $ 3,408,587 $ 2,539,636 Bank 89,218 75,799 321,068 306,398 Other 4,944 1,079 12,330 4,345 Total revenues 1,019,113 770,272 3,741,985 2,850,379 Expenses Electric utility 849,558 625,826 3,109,396 2,260,078 Bank 66,753 47,755 219,550 178,195 Other 9,788 7,828 31,966 26,040 Total expenses 926,099 681,409 3,360,912 �� 2,464,313 Operating income (loss) Electric utility 75,393 67,568 299,191 279,558 Bank 22,465 28,044 101,518 128,203 Other (4,844 ) (6,749 ) (19,636 ) (21,695 ) Total operating income 93,014 88,863 381,073 386,066 Retirement defined benefits credit—other than service costs 883 1,139 4,411 5,848 Interest expense, net—other than on deposit liabilities and other bank borrowings (27,462 ) (23,833 ) (103,402 ) (94,363 ) Allowance for borrowed funds used during construction 1,015 864 3,416 3,250 Allowance for equity funds used during construction 3,143 2,539 10,574 9,534 Gain on sales of investment securities, net and equity-method investment — — 8,123 528 Income before income taxes 70,593 69,572 304,195 310,863 Income taxes 12,772 14,578 61,167 62,807 Net income 57,821 54,994 243,028 248,056 Preferred stock dividends of subsidiaries 473 473 1,890 1,890 Net income for common stock $ 57,348 $ 54,521 $ 241,138 $ 246,166 Basic earnings per common share $ 0.52 $ 0.50 $ 2.20 $ 2.25 Diluted earnings per common share $ 0.52 $ 0.50 $ 2.20 $ 2.25 Dividends declared per common share $ 0.35 $ 0.34 $ 1.40 $ 1.36 Weighted-average number of common shares outstanding 109,471 109,311 109,434 109,282 Weighted-average shares assuming dilution 109,774 109,565 109,778 109,580 Net income (loss) for common stock by segment Electric utility $ 48,621 $ 42,041 $ 188,929 $ 177,642 Bank 17,897 22,129 79,989 101,234 Other (9,170 ) (9,649 ) (27,780 ) (32,710 ) Net income for common stock $ 57,348 $ 54,521 $ 241,138 $ 246,166 Comprehensive income (loss) attributable to HEI $ 74,864 $ 42,101 $ (42,357 ) $ 194,897 Return on average common equity (%) (twelve months ended) 10.5 10.4 This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the SEC. Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME DATA (Unaudited) Three months ended December 31 Years ended December 31 ($ in thousands, except per barrel amounts) 2022 2021 2022 2021 Revenues $ 924,951 $ 693,394 $ 3,408,587 $ 2,539,636 Expenses Fuel oil 391,071 197,104 1,265,614 644,349 Purchased power 186,757 179,974 793,584 670,494 Other operation and maintenance 126,342 126,232 497,601 475,412 Depreciation 59,503 57,347 235,424 229,469 Taxes, other than income taxes 85,885 65,169 317,173 240,354 Total expenses 849,558 625,826 3,109,396 2,260,078 Operating income 75,393 67,568 299,191 279,558 Allowance for equity funds used during construction 3,143 2,539 10,574 9,534 Retirement defined benefits credit—other than service costs 959 972 3,835 3,890 Interest expense and other charges, net (19,681) (18,321) (76,416) (72,447) Allowance for borrowed funds used during construction 1,015 864 3,416 3,250 Income before income taxes 60,829 53,622 240,600 223,785 Income taxes 11,709 11,082 49,676 44,148 Net income 49,120 42,540 190,924 179,637 Preferred stock dividends of subsidiaries 229 229 915 915 Net income attributable to Hawaiian Electric 48,891 42,311 190,009 178,722 Preferred stock dividends of Hawaiian Electric 270 270 1,080 1,080 Net income for common stock $ 48,621 $ 42,041 $ 188,929 $ 177,642 Comprehensive income attributable to Hawaiian Electric $ 54,552 $ 41,505 $ 195,070 $ 177,281 OTHER ELECTRIC UTILITY INFORMATION Kilowatthour sales (millions) Hawaiian Electric 1,603 1,592 6,212 6,170 Hawaii Electric Light 269 270 1,053 1,044 Maui Electric 282 273 1,089 1,047 2,154 2,135 8,354 8,261 Average fuel oil cost per barrel $ 152.05 $ 94.78 $ 141.49 $ 80.06 Return on average common equity (%) (twelve months ended)1 8.2 8.1 1 Simple average. This information should be read in conjunction with the consolidated financial statements and the notes thereto in Hawaiian Electric filings with the SEC. American Savings Bank, F.S.B. STATEMENTS OF INCOME DATA (Unaudited) Three months ended Years ended December 31 (in thousands) December 31, 2022 September 30, 2022 December 31, 2021 2022 2021 Interest and dividend income Interest and fees on loans $ 60,331 $ 53,365 $ 48,384 $ 207,830 $ 198,802 Interest and dividends on investment securities 14,315 15,052 11,755 58,044 43,464 Total interest and dividend income 74,646 68,417 60,139 265,874 242,266 Interest expense Interest on deposit liabilities 3,755 1,704 1,062 7,327 4,981 Interest on other borrowings 4,775 1,055 4 5,974 59 Total interest expense 8,530 2,759 1,066 13,301 5,040 Net interest income 66,116 65,658 59,073 252,573 237,226 Provision for credit losses 2,729 (186 ) (3,458 ) 2,037 (25,825 ) Net interest income after provision for credit losses 63,387 65,844 62,531 250,536 263,051 Noninterest income Fees from other financial services 4,764 4,763 5,888 19,830 21,225 Fee income on deposit liabilities 4,640 4,879 4,634 18,762 16,663 Fee income on other financial products 2,628 2,416 2,003 10,291 8,770 Bank-owned life insurance 1,872 122 1,107 2,533 7,318 Mortgage banking income 62 181 1,808 1,692 9,305 Gain on sale of real estate 776 — — 1,778 — Gain on sale of investment securities, net — — — — 528 Other income, net 606 633 220 2,086 851 Total noninterest income 15,348 12,994 15,660 56,972 64,660 Noninterest expense Compensation and employee benefits 30,361 28,597 27,375 113,839 113,970 Occupancy 7,030 5,577 5,358 24,026 20,584 Data processing 4,537 4,509 4,472 17,681 17,634 Services 2,967 2,751 2,718 10,679 10,327 Equipment 2,937 2,432 2,521 10,100 9,510 Office supplies, printing and postage 1,142 1,123 1,145 4,398 4,239 Marketing 1,091 925 1,562 3,968 3,870 FDIC insurance 978 914 823 3,591 3,235 Other expense 5,056 4,729 3,993 16,985 13,783 Total noninterest expense 56,099 51,557 49,967 205,267 197,152 Income before income taxes 22,636 27,281 28,224 102,241 130,559 Income taxes 4,739 6,525 6,095 22,252 29,325 Net income $ 17,897 $ 20,756 $ 22,129 $ 79,989 $ 101,234 Comprehensive income (loss) $ 29,282 $ (78,186 ) $ 9,840 $ (218,844 ) $ 48,506 OTHER BANK INFORMATION (annualized %, except as of period end) Return on average assets 0.76 0.89 0.97 0.86 1.15 Return on average equity 15.73 15.11 12.10 14.08 13.76 Return on average tangible common equity 19.20 17.77 13.63 16.46 15.49 Net interest margin 2.91 2.96 2.79 2.89 2.91 Efficiency ratio 68.86 65.55 66.86 66.31 65.31 Net charge-offs to average loans outstanding 0.06 0.03 0.03 0.03 0.07 As of period end Nonaccrual loans to loans receivable held for investment 0.28 0.35 0.86 Allowance for credit losses to loans outstanding 1.21 1.24 1.36 Tangible common equity to tangible assets 4.1 4.0 7.1 Tier-1 leverage ratio 7.8 7.7 7.9 Dividend paid to HEI (via ASB Hawaii, Inc.) ($ in millions) $ 10.0 $ 5.0 $ 19.0 $ 42.0 $ 59.0 This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the SEC. View source version on businesswire.com: https://www.businesswire.com/news/home/20230214005366/en/Contacts Mateo Garcia Director, Investor Relations (808) 543-7300 ir@hei.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
HEI Reports 2022 Results By: Hawaiian Electric Industries, Inc. via Business Wire February 14, 2023 at 06:00 AM EST Full Year Net Income of $241.1 million and Diluted Earnings Per Share (EPS) of $2.20 Quarterly Dividend Increased to $0.36 Per Share 2022 Highlights: Net income of $241.1 million and EPS of $2.20 highlight continued strategic benefits from HEI’s combination of companies Hawaiian Electric delivered solid financial performance under first full year of Performance Based Regulation (PBR) and made strong progress on its renewables goals Delivered earnings growth in first full year under new regulatory construct Operated efficiently, managing expenses well in inflationary environment while assisting our customers most impacted by historically high oil prices Ended use of coal for power generation in Hawaii, executing on a key element of the utility’s Climate Change Action Plan and path toward net zero carbon emissions by 2045 Integrated Oahu’s first utility-scale solar-plus-storage project on to the grid, and advanced half a dozen more utility-scale clean energy projects expected to come online by 2024 Selected seven solar projects to be the first to offer community solar for customers who meet low- and moderate-income levels Solid profitability and execution from American Savings Bank Executed on market opportunities and grew loans by 15%, the strongest growth in over a decade Strong credit quality drove 0.03% net charge off ratio (lowest since 2014), and low provision for credit losses ($2 million) Net interest income up 6.5% versus 2021 Net interest margin remained strong at 2.89% Continued strong capital and liquidity position Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported full year 2022 consolidated net income for common stock of $241.1 million and EPS of $2.20 compared to $246.2 million and EPS of $2.25 for 2021. Net income for 2021 reflected bank earnings that were elevated by pandemic recovery-related items, including a net benefit from the release of COVID-related reserves, and Paycheck Protection Program (PPP) fee income. For the fourth quarter of 2022, consolidated net income for common stock was $57.3 million and EPS was $0.52 compared to $54.5 million and EPS of $0.50 for the fourth quarter of 2021. “Our strong results for the year reflect the strategic benefit of our combination of companies,” said Scott Seu, HEI president and CEO. “The utility delivered good results, growing net income despite challenges from multiple different macroeconomic pressures, while continuing to significantly advance our clean energy transition and support customers experiencing financial difficulties. “Our bank results reflect strong execution by our team, solid credit quality and a healthy Hawaii economy. Excluding unique pandemic recovery-related items that benefited the bank’s 2021 net income, we saw meaningful growth in earnings year over year. We also saw the strongest loan growth in recent memory, reflecting great work by the ASB team and the resilience of Hawaii’s consumers and businesses. We continued to see positive credit trends despite the inflationary environment, and rising interest rates benefited net interest margin and profitability,” said Seu. HAWAIIAN ELECTRIC COMPANY EARNINGS1 Full Year Results: Hawaiian Electric Company’s (Hawaiian Electric) full-year net income was $188.9 million, compared to $177.6 million in 2021, with the increase primarily driven by the following after-tax items: $28 million higher net revenues from Public Utilities Commission approved regulatory mechanisms. This included $25 million from the annual revenue adjustment (ARA) mechanism, and $3 million from recovery under the major project interim recovery (MPIR) mechanism; $4 million higher other fee revenue; $1 million higher allowance for funds used during construction (AFUDC); and $1 million due to the reset of heat rate requirements leading to lower penalties for fuel efficiency at our Hawaii Island utility. These items were partially offset by the following after-tax items: $13 million higher operation and maintenance expenses, driven by increased generating station maintenance, higher bad debt expense and increased transmission and distribution preventative and corrective maintenance; $4 million from higher depreciation expense due to increasing investments to integrate more renewable energy and improve customer reliability and system efficiency; $3 million higher interest expense due to higher rates and borrowings, which, among other things, helped support the interest-free payment plan program for customers facing financial hardship; and $2 million in net tax adjustments due to tax credit benefits recognized in the third quarter of 2021. Fourth Quarter Results: Hawaiian Electric’s net income for the fourth quarter of 2022 was $48.6 million, compared to $42.0 million in the fourth quarter of 2021, with the variance primarily driven by the following after-tax items: $6 million higher ARA and MPIR revenues and $1 million higher AFUDC. These items were partially offset by higher depreciation, higher interest expense and worse fuel efficiency due to the operating demands of the system to ensure reliability during the quarter. AMERICAN SAVINGS BANK EARNINGS Full Year Results: American Savings Bank’s (ASB) full year 2022 net income was $80.0 million, compared to $101.2 million in 2021. Net income for 2021 reflected a net benefit of $25.8 million from the release of COVID-related reserves, compared to an expense totaling $2.0 million in 2022 (pre-tax). Net income for 2021 also included $14.3 million in PPP fee income, compared to $2.9 million in PPP fee income in 2022 (pre-tax). Net interest income was $252.6 million in 2022 compared to $237.2 million in 2021. The increase in net interest income for the year was primarily due to higher yields on loans and investment securities, strong loan growth across the entire portfolio and higher balances of investment securities. Noninterest income for 2022 was $57.0 million compared to $64.7 million in 2021. The decrease in noninterest income was primarily due to lower mortgage banking income, lower bank-owned life insurance (BOLI) income and lower fees from other financial services, partially offset by higher fee income on deposit liabilities, gains on sales of real estate and fee income on other financial products. Strong loan growth during the year required additional credit loss reserves, but those additional reserves were partially offset by provision releases due to favorable credit trends. The provision for credit losses for 2022 was $2.0 million compared to a negative provision for credit losses of $25.8 million in 2021. Noninterest expense for 2022 was $205.3 million compared to $197.2 million in 2021. The increase in noninterest expense was driven by a pension accounting change that resulted in lower pension expense in 2021, and higher occupancy costs in 2022 primarily from the write-off of leases related to branch closures. As of December 31, 2022 and compared to December 31, 2021: Total earning assets were $9.1 billion, up 7.2%; Total loans were $6.0 billion, up 15%; and Total deposits were $8.2 billion, a decrease of 0.03%. The average cost of funds was 0.16% for the full year 2022, 10 basis points higher than the prior year. ASB’s return on average equity for the full year 2022 was 14.1% compared to 13.8% in 2021. Return on average assets for the full year was 0.86% in 2022 compared to 1.15% in 2021. Fourth Quarter Results: Net income for the fourth quarter of 2022 was $17.9 million, compared to $22.1 million in the fourth quarter of 2021. Results for the fourth quarter of 2022 included a provision for credit losses (expense) of $2.7 million compared to a negative provision for credit losses (benefit) of $3.5 million in the fourth quarter of 2021. For the fourth quarter of 2022, return on average equity was 15.7%, compared to 12.1% in the fourth quarter of 2021. Return on average assets was 0.76% for the fourth quarter of 2022, compared to 0.97% in the same quarter last year. Please refer to ASB’s news release issued on January 30, 2023 for additional information on ASB. HOLDING AND OTHER COMPANIES The holding and other companies’ net loss was $27.8 million in 2022 compared to $32.7 million in 2021. The lower net loss for the year was primarily due to a $6.2 million after-tax gain on sale of an equity-method investment at Pacific Current and lower compensation expense, partially offset by higher interest expense. The fourth quarter net loss of $9.2 million was $0.5 million lower than the prior year quarter, primarily due to lower executive compensation expense, partially offset by higher interest expense. BOARD INCREASES QUARTERLY DIVIDEND On February 10, 2023, HEI announced that the Board of Directors increased the quarterly cash dividend from $0.35 to $0.36 per share, payable on March 10, 2023 to shareholders of record at the close of business on February 23, 2023 (ex-dividend date is February 22, 2023). This quarterly dividend is equivalent to an annual rate of $1.44 per share. Dividends have been paid on an uninterrupted basis since 1901. At the indicated annual dividend rate and based on the closing price per share on February 10, 2023 of $42.41, HEI’s dividend yield is 3.4%. WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS AND 2022 GUIDANCE HEI will conduct a webcast and conference call to review its consolidated results and 2023 earnings guidance and outlook on Tuesday, February 14, 2023 at 11:15 a.m. Hawaii time (4:15 p.m. Eastern). To listen to the conference call, dial 1-844-200-6205 (U.S.) or +1-929-526-1599 (international) and enter passcode 864795. Parties may also access presentation materials and/or listen to the conference call by visiting the conference call link on HEI’s website at www.hei.com under “Investor Relations,” sub-heading “News and Events — Events and Presentations.” 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. An audio replay will also be available about two hours after the event through February 28, 2023. To access the audio replay, dial 1-866-813-9403 (U.S.) or +44-204-525-0658 (international) and enter passcode 326110. HEI and Hawaiian Electric Company, Inc. (Hawaiian Electric) intend to continue to use HEI’s website, www.hei.com, as a means of disclosing additional information; such disclosures will be included in the Investor Relations section of the website. Accordingly, investors should routinely monitor the Investor Relations section of HEI’s website, in addition to following HEI’s, Hawaiian Electric’s and ASB’s press releases, HEI’s and Hawaiian Electric’s Securities and Exchange Commission (SEC) filings and HEI’s public conference calls and webcasts. Investors may sign up to receive e-mail alerts via the “Investor Relations” section of the website. The information on HEI’s website is not incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings unless, and except to the extent, specifically incorporated by reference. Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at dms.puc.hawaii.gov/dms to review documents filed with, and issued by, the PUC. No information on the PUC website is incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings. ABOUT HEI The HEI family of companies provides the energy and financial services that empower much of the economic and community activity of Hawaii. HEI’s electric utility, Hawaiian Electric, supplies power to approximately 95% of Hawaii’s population and is undertaking an ambitious effort to decarbonize its operations and the broader state economy. Its banking subsidiary, ASB, is one of Hawaii’s largest financial institutions, providing a wide array of banking and other financial services and working to advance economic growth, affordability and financial fitness. HEI also helps advance Hawaii’s sustainability goals through investments by its non-regulated subsidiary, Pacific Current. For more information, visit www.hei.com. 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 December 31, 2021 and HEI’s other periodic reports that discuss important factors that could cause HEI’s results to differ materially from those anticipated in such statements. These 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 and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. _______________________ 1 Note: 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%. Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME DATA (Unaudited) Three months ended December 31 Years ended December 31 (in thousands, except per share amounts) 2022 2021 2022 2021 Revenues Electric utility $ 924,951 $ 693,394 $ 3,408,587 $ 2,539,636 Bank 89,218 75,799 321,068 306,398 Other 4,944 1,079 12,330 4,345 Total revenues 1,019,113 770,272 3,741,985 2,850,379 Expenses Electric utility 849,558 625,826 3,109,396 2,260,078 Bank 66,753 47,755 219,550 178,195 Other 9,788 7,828 31,966 26,040 Total expenses 926,099 681,409 3,360,912 �� 2,464,313 Operating income (loss) Electric utility 75,393 67,568 299,191 279,558 Bank 22,465 28,044 101,518 128,203 Other (4,844 ) (6,749 ) (19,636 ) (21,695 ) Total operating income 93,014 88,863 381,073 386,066 Retirement defined benefits credit—other than service costs 883 1,139 4,411 5,848 Interest expense, net—other than on deposit liabilities and other bank borrowings (27,462 ) (23,833 ) (103,402 ) (94,363 ) Allowance for borrowed funds used during construction 1,015 864 3,416 3,250 Allowance for equity funds used during construction 3,143 2,539 10,574 9,534 Gain on sales of investment securities, net and equity-method investment — — 8,123 528 Income before income taxes 70,593 69,572 304,195 310,863 Income taxes 12,772 14,578 61,167 62,807 Net income 57,821 54,994 243,028 248,056 Preferred stock dividends of subsidiaries 473 473 1,890 1,890 Net income for common stock $ 57,348 $ 54,521 $ 241,138 $ 246,166 Basic earnings per common share $ 0.52 $ 0.50 $ 2.20 $ 2.25 Diluted earnings per common share $ 0.52 $ 0.50 $ 2.20 $ 2.25 Dividends declared per common share $ 0.35 $ 0.34 $ 1.40 $ 1.36 Weighted-average number of common shares outstanding 109,471 109,311 109,434 109,282 Weighted-average shares assuming dilution 109,774 109,565 109,778 109,580 Net income (loss) for common stock by segment Electric utility $ 48,621 $ 42,041 $ 188,929 $ 177,642 Bank 17,897 22,129 79,989 101,234 Other (9,170 ) (9,649 ) (27,780 ) (32,710 ) Net income for common stock $ 57,348 $ 54,521 $ 241,138 $ 246,166 Comprehensive income (loss) attributable to HEI $ 74,864 $ 42,101 $ (42,357 ) $ 194,897 Return on average common equity (%) (twelve months ended) 10.5 10.4 This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the SEC. Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME DATA (Unaudited) Three months ended December 31 Years ended December 31 ($ in thousands, except per barrel amounts) 2022 2021 2022 2021 Revenues $ 924,951 $ 693,394 $ 3,408,587 $ 2,539,636 Expenses Fuel oil 391,071 197,104 1,265,614 644,349 Purchased power 186,757 179,974 793,584 670,494 Other operation and maintenance 126,342 126,232 497,601 475,412 Depreciation 59,503 57,347 235,424 229,469 Taxes, other than income taxes 85,885 65,169 317,173 240,354 Total expenses 849,558 625,826 3,109,396 2,260,078 Operating income 75,393 67,568 299,191 279,558 Allowance for equity funds used during construction 3,143 2,539 10,574 9,534 Retirement defined benefits credit—other than service costs 959 972 3,835 3,890 Interest expense and other charges, net (19,681) (18,321) (76,416) (72,447) Allowance for borrowed funds used during construction 1,015 864 3,416 3,250 Income before income taxes 60,829 53,622 240,600 223,785 Income taxes 11,709 11,082 49,676 44,148 Net income 49,120 42,540 190,924 179,637 Preferred stock dividends of subsidiaries 229 229 915 915 Net income attributable to Hawaiian Electric 48,891 42,311 190,009 178,722 Preferred stock dividends of Hawaiian Electric 270 270 1,080 1,080 Net income for common stock $ 48,621 $ 42,041 $ 188,929 $ 177,642 Comprehensive income attributable to Hawaiian Electric $ 54,552 $ 41,505 $ 195,070 $ 177,281 OTHER ELECTRIC UTILITY INFORMATION Kilowatthour sales (millions) Hawaiian Electric 1,603 1,592 6,212 6,170 Hawaii Electric Light 269 270 1,053 1,044 Maui Electric 282 273 1,089 1,047 2,154 2,135 8,354 8,261 Average fuel oil cost per barrel $ 152.05 $ 94.78 $ 141.49 $ 80.06 Return on average common equity (%) (twelve months ended)1 8.2 8.1 1 Simple average. This information should be read in conjunction with the consolidated financial statements and the notes thereto in Hawaiian Electric filings with the SEC. American Savings Bank, F.S.B. STATEMENTS OF INCOME DATA (Unaudited) Three months ended Years ended December 31 (in thousands) December 31, 2022 September 30, 2022 December 31, 2021 2022 2021 Interest and dividend income Interest and fees on loans $ 60,331 $ 53,365 $ 48,384 $ 207,830 $ 198,802 Interest and dividends on investment securities 14,315 15,052 11,755 58,044 43,464 Total interest and dividend income 74,646 68,417 60,139 265,874 242,266 Interest expense Interest on deposit liabilities 3,755 1,704 1,062 7,327 4,981 Interest on other borrowings 4,775 1,055 4 5,974 59 Total interest expense 8,530 2,759 1,066 13,301 5,040 Net interest income 66,116 65,658 59,073 252,573 237,226 Provision for credit losses 2,729 (186 ) (3,458 ) 2,037 (25,825 ) Net interest income after provision for credit losses 63,387 65,844 62,531 250,536 263,051 Noninterest income Fees from other financial services 4,764 4,763 5,888 19,830 21,225 Fee income on deposit liabilities 4,640 4,879 4,634 18,762 16,663 Fee income on other financial products 2,628 2,416 2,003 10,291 8,770 Bank-owned life insurance 1,872 122 1,107 2,533 7,318 Mortgage banking income 62 181 1,808 1,692 9,305 Gain on sale of real estate 776 — — 1,778 — Gain on sale of investment securities, net — — — — 528 Other income, net 606 633 220 2,086 851 Total noninterest income 15,348 12,994 15,660 56,972 64,660 Noninterest expense Compensation and employee benefits 30,361 28,597 27,375 113,839 113,970 Occupancy 7,030 5,577 5,358 24,026 20,584 Data processing 4,537 4,509 4,472 17,681 17,634 Services 2,967 2,751 2,718 10,679 10,327 Equipment 2,937 2,432 2,521 10,100 9,510 Office supplies, printing and postage 1,142 1,123 1,145 4,398 4,239 Marketing 1,091 925 1,562 3,968 3,870 FDIC insurance 978 914 823 3,591 3,235 Other expense 5,056 4,729 3,993 16,985 13,783 Total noninterest expense 56,099 51,557 49,967 205,267 197,152 Income before income taxes 22,636 27,281 28,224 102,241 130,559 Income taxes 4,739 6,525 6,095 22,252 29,325 Net income $ 17,897 $ 20,756 $ 22,129 $ 79,989 $ 101,234 Comprehensive income (loss) $ 29,282 $ (78,186 ) $ 9,840 $ (218,844 ) $ 48,506 OTHER BANK INFORMATION (annualized %, except as of period end) Return on average assets 0.76 0.89 0.97 0.86 1.15 Return on average equity 15.73 15.11 12.10 14.08 13.76 Return on average tangible common equity 19.20 17.77 13.63 16.46 15.49 Net interest margin 2.91 2.96 2.79 2.89 2.91 Efficiency ratio 68.86 65.55 66.86 66.31 65.31 Net charge-offs to average loans outstanding 0.06 0.03 0.03 0.03 0.07 As of period end Nonaccrual loans to loans receivable held for investment 0.28 0.35 0.86 Allowance for credit losses to loans outstanding 1.21 1.24 1.36 Tangible common equity to tangible assets 4.1 4.0 7.1 Tier-1 leverage ratio 7.8 7.7 7.9 Dividend paid to HEI (via ASB Hawaii, Inc.) ($ in millions) $ 10.0 $ 5.0 $ 19.0 $ 42.0 $ 59.0 This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the SEC. View source version on businesswire.com: https://www.businesswire.com/news/home/20230214005366/en/Contacts Mateo Garcia Director, Investor Relations (808) 543-7300 ir@hei.com
Full Year Net Income of $241.1 million and Diluted Earnings Per Share (EPS) of $2.20 Quarterly Dividend Increased to $0.36 Per Share 2022 Highlights: Net income of $241.1 million and EPS of $2.20 highlight continued strategic benefits from HEI’s combination of companies Hawaiian Electric delivered solid financial performance under first full year of Performance Based Regulation (PBR) and made strong progress on its renewables goals Delivered earnings growth in first full year under new regulatory construct Operated efficiently, managing expenses well in inflationary environment while assisting our customers most impacted by historically high oil prices Ended use of coal for power generation in Hawaii, executing on a key element of the utility’s Climate Change Action Plan and path toward net zero carbon emissions by 2045 Integrated Oahu’s first utility-scale solar-plus-storage project on to the grid, and advanced half a dozen more utility-scale clean energy projects expected to come online by 2024 Selected seven solar projects to be the first to offer community solar for customers who meet low- and moderate-income levels Solid profitability and execution from American Savings Bank Executed on market opportunities and grew loans by 15%, the strongest growth in over a decade Strong credit quality drove 0.03% net charge off ratio (lowest since 2014), and low provision for credit losses ($2 million) Net interest income up 6.5% versus 2021 Net interest margin remained strong at 2.89% Continued strong capital and liquidity position
Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported full year 2022 consolidated net income for common stock of $241.1 million and EPS of $2.20 compared to $246.2 million and EPS of $2.25 for 2021. Net income for 2021 reflected bank earnings that were elevated by pandemic recovery-related items, including a net benefit from the release of COVID-related reserves, and Paycheck Protection Program (PPP) fee income. For the fourth quarter of 2022, consolidated net income for common stock was $57.3 million and EPS was $0.52 compared to $54.5 million and EPS of $0.50 for the fourth quarter of 2021. “Our strong results for the year reflect the strategic benefit of our combination of companies,” said Scott Seu, HEI president and CEO. “The utility delivered good results, growing net income despite challenges from multiple different macroeconomic pressures, while continuing to significantly advance our clean energy transition and support customers experiencing financial difficulties. “Our bank results reflect strong execution by our team, solid credit quality and a healthy Hawaii economy. Excluding unique pandemic recovery-related items that benefited the bank’s 2021 net income, we saw meaningful growth in earnings year over year. We also saw the strongest loan growth in recent memory, reflecting great work by the ASB team and the resilience of Hawaii’s consumers and businesses. We continued to see positive credit trends despite the inflationary environment, and rising interest rates benefited net interest margin and profitability,” said Seu. HAWAIIAN ELECTRIC COMPANY EARNINGS1 Full Year Results: Hawaiian Electric Company’s (Hawaiian Electric) full-year net income was $188.9 million, compared to $177.6 million in 2021, with the increase primarily driven by the following after-tax items: $28 million higher net revenues from Public Utilities Commission approved regulatory mechanisms. This included $25 million from the annual revenue adjustment (ARA) mechanism, and $3 million from recovery under the major project interim recovery (MPIR) mechanism; $4 million higher other fee revenue; $1 million higher allowance for funds used during construction (AFUDC); and $1 million due to the reset of heat rate requirements leading to lower penalties for fuel efficiency at our Hawaii Island utility. These items were partially offset by the following after-tax items: $13 million higher operation and maintenance expenses, driven by increased generating station maintenance, higher bad debt expense and increased transmission and distribution preventative and corrective maintenance; $4 million from higher depreciation expense due to increasing investments to integrate more renewable energy and improve customer reliability and system efficiency; $3 million higher interest expense due to higher rates and borrowings, which, among other things, helped support the interest-free payment plan program for customers facing financial hardship; and $2 million in net tax adjustments due to tax credit benefits recognized in the third quarter of 2021. Fourth Quarter Results: Hawaiian Electric’s net income for the fourth quarter of 2022 was $48.6 million, compared to $42.0 million in the fourth quarter of 2021, with the variance primarily driven by the following after-tax items: $6 million higher ARA and MPIR revenues and $1 million higher AFUDC. These items were partially offset by higher depreciation, higher interest expense and worse fuel efficiency due to the operating demands of the system to ensure reliability during the quarter. AMERICAN SAVINGS BANK EARNINGS Full Year Results: American Savings Bank’s (ASB) full year 2022 net income was $80.0 million, compared to $101.2 million in 2021. Net income for 2021 reflected a net benefit of $25.8 million from the release of COVID-related reserves, compared to an expense totaling $2.0 million in 2022 (pre-tax). Net income for 2021 also included $14.3 million in PPP fee income, compared to $2.9 million in PPP fee income in 2022 (pre-tax). Net interest income was $252.6 million in 2022 compared to $237.2 million in 2021. The increase in net interest income for the year was primarily due to higher yields on loans and investment securities, strong loan growth across the entire portfolio and higher balances of investment securities. Noninterest income for 2022 was $57.0 million compared to $64.7 million in 2021. The decrease in noninterest income was primarily due to lower mortgage banking income, lower bank-owned life insurance (BOLI) income and lower fees from other financial services, partially offset by higher fee income on deposit liabilities, gains on sales of real estate and fee income on other financial products. Strong loan growth during the year required additional credit loss reserves, but those additional reserves were partially offset by provision releases due to favorable credit trends. The provision for credit losses for 2022 was $2.0 million compared to a negative provision for credit losses of $25.8 million in 2021. Noninterest expense for 2022 was $205.3 million compared to $197.2 million in 2021. The increase in noninterest expense was driven by a pension accounting change that resulted in lower pension expense in 2021, and higher occupancy costs in 2022 primarily from the write-off of leases related to branch closures. As of December 31, 2022 and compared to December 31, 2021: Total earning assets were $9.1 billion, up 7.2%; Total loans were $6.0 billion, up 15%; and Total deposits were $8.2 billion, a decrease of 0.03%. The average cost of funds was 0.16% for the full year 2022, 10 basis points higher than the prior year. ASB’s return on average equity for the full year 2022 was 14.1% compared to 13.8% in 2021. Return on average assets for the full year was 0.86% in 2022 compared to 1.15% in 2021. Fourth Quarter Results: Net income for the fourth quarter of 2022 was $17.9 million, compared to $22.1 million in the fourth quarter of 2021. Results for the fourth quarter of 2022 included a provision for credit losses (expense) of $2.7 million compared to a negative provision for credit losses (benefit) of $3.5 million in the fourth quarter of 2021. For the fourth quarter of 2022, return on average equity was 15.7%, compared to 12.1% in the fourth quarter of 2021. Return on average assets was 0.76% for the fourth quarter of 2022, compared to 0.97% in the same quarter last year. Please refer to ASB’s news release issued on January 30, 2023 for additional information on ASB. HOLDING AND OTHER COMPANIES The holding and other companies’ net loss was $27.8 million in 2022 compared to $32.7 million in 2021. The lower net loss for the year was primarily due to a $6.2 million after-tax gain on sale of an equity-method investment at Pacific Current and lower compensation expense, partially offset by higher interest expense. The fourth quarter net loss of $9.2 million was $0.5 million lower than the prior year quarter, primarily due to lower executive compensation expense, partially offset by higher interest expense. BOARD INCREASES QUARTERLY DIVIDEND On February 10, 2023, HEI announced that the Board of Directors increased the quarterly cash dividend from $0.35 to $0.36 per share, payable on March 10, 2023 to shareholders of record at the close of business on February 23, 2023 (ex-dividend date is February 22, 2023). This quarterly dividend is equivalent to an annual rate of $1.44 per share. Dividends have been paid on an uninterrupted basis since 1901. At the indicated annual dividend rate and based on the closing price per share on February 10, 2023 of $42.41, HEI’s dividend yield is 3.4%. WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS AND 2022 GUIDANCE HEI will conduct a webcast and conference call to review its consolidated results and 2023 earnings guidance and outlook on Tuesday, February 14, 2023 at 11:15 a.m. Hawaii time (4:15 p.m. Eastern). To listen to the conference call, dial 1-844-200-6205 (U.S.) or +1-929-526-1599 (international) and enter passcode 864795. Parties may also access presentation materials and/or listen to the conference call by visiting the conference call link on HEI’s website at www.hei.com under “Investor Relations,” sub-heading “News and Events — Events and Presentations.” 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. An audio replay will also be available about two hours after the event through February 28, 2023. To access the audio replay, dial 1-866-813-9403 (U.S.) or +44-204-525-0658 (international) and enter passcode 326110. HEI and Hawaiian Electric Company, Inc. (Hawaiian Electric) intend to continue to use HEI’s website, www.hei.com, as a means of disclosing additional information; such disclosures will be included in the Investor Relations section of the website. Accordingly, investors should routinely monitor the Investor Relations section of HEI’s website, in addition to following HEI’s, Hawaiian Electric’s and ASB’s press releases, HEI’s and Hawaiian Electric’s Securities and Exchange Commission (SEC) filings and HEI’s public conference calls and webcasts. Investors may sign up to receive e-mail alerts via the “Investor Relations” section of the website. The information on HEI’s website is not incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings unless, and except to the extent, specifically incorporated by reference. Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at dms.puc.hawaii.gov/dms to review documents filed with, and issued by, the PUC. No information on the PUC website is incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings. ABOUT HEI The HEI family of companies provides the energy and financial services that empower much of the economic and community activity of Hawaii. HEI’s electric utility, Hawaiian Electric, supplies power to approximately 95% of Hawaii’s population and is undertaking an ambitious effort to decarbonize its operations and the broader state economy. Its banking subsidiary, ASB, is one of Hawaii’s largest financial institutions, providing a wide array of banking and other financial services and working to advance economic growth, affordability and financial fitness. HEI also helps advance Hawaii’s sustainability goals through investments by its non-regulated subsidiary, Pacific Current. For more information, visit www.hei.com. 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 December 31, 2021 and HEI’s other periodic reports that discuss important factors that could cause HEI’s results to differ materially from those anticipated in such statements. These 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 and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. _______________________ 1 Note: 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%. Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME DATA (Unaudited) Three months ended December 31 Years ended December 31 (in thousands, except per share amounts) 2022 2021 2022 2021 Revenues Electric utility $ 924,951 $ 693,394 $ 3,408,587 $ 2,539,636 Bank 89,218 75,799 321,068 306,398 Other 4,944 1,079 12,330 4,345 Total revenues 1,019,113 770,272 3,741,985 2,850,379 Expenses Electric utility 849,558 625,826 3,109,396 2,260,078 Bank 66,753 47,755 219,550 178,195 Other 9,788 7,828 31,966 26,040 Total expenses 926,099 681,409 3,360,912 �� 2,464,313 Operating income (loss) Electric utility 75,393 67,568 299,191 279,558 Bank 22,465 28,044 101,518 128,203 Other (4,844 ) (6,749 ) (19,636 ) (21,695 ) Total operating income 93,014 88,863 381,073 386,066 Retirement defined benefits credit—other than service costs 883 1,139 4,411 5,848 Interest expense, net—other than on deposit liabilities and other bank borrowings (27,462 ) (23,833 ) (103,402 ) (94,363 ) Allowance for borrowed funds used during construction 1,015 864 3,416 3,250 Allowance for equity funds used during construction 3,143 2,539 10,574 9,534 Gain on sales of investment securities, net and equity-method investment — — 8,123 528 Income before income taxes 70,593 69,572 304,195 310,863 Income taxes 12,772 14,578 61,167 62,807 Net income 57,821 54,994 243,028 248,056 Preferred stock dividends of subsidiaries 473 473 1,890 1,890 Net income for common stock $ 57,348 $ 54,521 $ 241,138 $ 246,166 Basic earnings per common share $ 0.52 $ 0.50 $ 2.20 $ 2.25 Diluted earnings per common share $ 0.52 $ 0.50 $ 2.20 $ 2.25 Dividends declared per common share $ 0.35 $ 0.34 $ 1.40 $ 1.36 Weighted-average number of common shares outstanding 109,471 109,311 109,434 109,282 Weighted-average shares assuming dilution 109,774 109,565 109,778 109,580 Net income (loss) for common stock by segment Electric utility $ 48,621 $ 42,041 $ 188,929 $ 177,642 Bank 17,897 22,129 79,989 101,234 Other (9,170 ) (9,649 ) (27,780 ) (32,710 ) Net income for common stock $ 57,348 $ 54,521 $ 241,138 $ 246,166 Comprehensive income (loss) attributable to HEI $ 74,864 $ 42,101 $ (42,357 ) $ 194,897 Return on average common equity (%) (twelve months ended) 10.5 10.4 This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the SEC. Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME DATA (Unaudited) Three months ended December 31 Years ended December 31 ($ in thousands, except per barrel amounts) 2022 2021 2022 2021 Revenues $ 924,951 $ 693,394 $ 3,408,587 $ 2,539,636 Expenses Fuel oil 391,071 197,104 1,265,614 644,349 Purchased power 186,757 179,974 793,584 670,494 Other operation and maintenance 126,342 126,232 497,601 475,412 Depreciation 59,503 57,347 235,424 229,469 Taxes, other than income taxes 85,885 65,169 317,173 240,354 Total expenses 849,558 625,826 3,109,396 2,260,078 Operating income 75,393 67,568 299,191 279,558 Allowance for equity funds used during construction 3,143 2,539 10,574 9,534 Retirement defined benefits credit—other than service costs 959 972 3,835 3,890 Interest expense and other charges, net (19,681) (18,321) (76,416) (72,447) Allowance for borrowed funds used during construction 1,015 864 3,416 3,250 Income before income taxes 60,829 53,622 240,600 223,785 Income taxes 11,709 11,082 49,676 44,148 Net income 49,120 42,540 190,924 179,637 Preferred stock dividends of subsidiaries 229 229 915 915 Net income attributable to Hawaiian Electric 48,891 42,311 190,009 178,722 Preferred stock dividends of Hawaiian Electric 270 270 1,080 1,080 Net income for common stock $ 48,621 $ 42,041 $ 188,929 $ 177,642 Comprehensive income attributable to Hawaiian Electric $ 54,552 $ 41,505 $ 195,070 $ 177,281 OTHER ELECTRIC UTILITY INFORMATION Kilowatthour sales (millions) Hawaiian Electric 1,603 1,592 6,212 6,170 Hawaii Electric Light 269 270 1,053 1,044 Maui Electric 282 273 1,089 1,047 2,154 2,135 8,354 8,261 Average fuel oil cost per barrel $ 152.05 $ 94.78 $ 141.49 $ 80.06 Return on average common equity (%) (twelve months ended)1 8.2 8.1 1 Simple average. This information should be read in conjunction with the consolidated financial statements and the notes thereto in Hawaiian Electric filings with the SEC. American Savings Bank, F.S.B. STATEMENTS OF INCOME DATA (Unaudited) Three months ended Years ended December 31 (in thousands) December 31, 2022 September 30, 2022 December 31, 2021 2022 2021 Interest and dividend income Interest and fees on loans $ 60,331 $ 53,365 $ 48,384 $ 207,830 $ 198,802 Interest and dividends on investment securities 14,315 15,052 11,755 58,044 43,464 Total interest and dividend income 74,646 68,417 60,139 265,874 242,266 Interest expense Interest on deposit liabilities 3,755 1,704 1,062 7,327 4,981 Interest on other borrowings 4,775 1,055 4 5,974 59 Total interest expense 8,530 2,759 1,066 13,301 5,040 Net interest income 66,116 65,658 59,073 252,573 237,226 Provision for credit losses 2,729 (186 ) (3,458 ) 2,037 (25,825 ) Net interest income after provision for credit losses 63,387 65,844 62,531 250,536 263,051 Noninterest income Fees from other financial services 4,764 4,763 5,888 19,830 21,225 Fee income on deposit liabilities 4,640 4,879 4,634 18,762 16,663 Fee income on other financial products 2,628 2,416 2,003 10,291 8,770 Bank-owned life insurance 1,872 122 1,107 2,533 7,318 Mortgage banking income 62 181 1,808 1,692 9,305 Gain on sale of real estate 776 — — 1,778 — Gain on sale of investment securities, net — — — — 528 Other income, net 606 633 220 2,086 851 Total noninterest income 15,348 12,994 15,660 56,972 64,660 Noninterest expense Compensation and employee benefits 30,361 28,597 27,375 113,839 113,970 Occupancy 7,030 5,577 5,358 24,026 20,584 Data processing 4,537 4,509 4,472 17,681 17,634 Services 2,967 2,751 2,718 10,679 10,327 Equipment 2,937 2,432 2,521 10,100 9,510 Office supplies, printing and postage 1,142 1,123 1,145 4,398 4,239 Marketing 1,091 925 1,562 3,968 3,870 FDIC insurance 978 914 823 3,591 3,235 Other expense 5,056 4,729 3,993 16,985 13,783 Total noninterest expense 56,099 51,557 49,967 205,267 197,152 Income before income taxes 22,636 27,281 28,224 102,241 130,559 Income taxes 4,739 6,525 6,095 22,252 29,325 Net income $ 17,897 $ 20,756 $ 22,129 $ 79,989 $ 101,234 Comprehensive income (loss) $ 29,282 $ (78,186 ) $ 9,840 $ (218,844 ) $ 48,506 OTHER BANK INFORMATION (annualized %, except as of period end) Return on average assets 0.76 0.89 0.97 0.86 1.15 Return on average equity 15.73 15.11 12.10 14.08 13.76 Return on average tangible common equity 19.20 17.77 13.63 16.46 15.49 Net interest margin 2.91 2.96 2.79 2.89 2.91 Efficiency ratio 68.86 65.55 66.86 66.31 65.31 Net charge-offs to average loans outstanding 0.06 0.03 0.03 0.03 0.07 As of period end Nonaccrual loans to loans receivable held for investment 0.28 0.35 0.86 Allowance for credit losses to loans outstanding 1.21 1.24 1.36 Tangible common equity to tangible assets 4.1 4.0 7.1 Tier-1 leverage ratio 7.8 7.7 7.9 Dividend paid to HEI (via ASB Hawaii, Inc.) ($ in millions) $ 10.0 $ 5.0 $ 19.0 $ 42.0 $ 59.0 This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the SEC. View source version on businesswire.com: https://www.businesswire.com/news/home/20230214005366/en/