Hawaiian Electric Industries Reports Second Quarter 2012 Earnings & Declares Dividend Earnings Per Share of $0.40 Consistent with First Quarter 2012

Hawaiian Electric Company Invests Over $74 Million in Infrastructure

American Savings Bank Delivers Solid Results and Continues Loan Growth

Board Declares Dividend of $0.31 Per Share

HONOLULU, Aug. 2, 2012 /PRNewswire/ -- Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported consolidated net income for common stock for the second quarter of 2012 of $38.8 million, or $0.40 diluted earnings per share (EPS), consistent with $38.3 million, or $0.40 diluted EPS in the first, or linked, quarter of 2012.  In the second quarter of 2011, net income was $27.1 million, or $0.28 diluted EPS. 

"HEI delivered consistent results in the first half of the year as we continued to invest in Hawaii's economy and clean energy future.  This quarter, our utilities invested another $74 million, two and a half times its earnings, in local infrastructure projects to continue to modernize the electric grid.  Our utilities' use of renewable energy – now at more than 13% of electric sales – continues to grow, reflecting our ongoing commitment to moving Hawaii to clean, locally produced energy.  American Savings Bank (American) again reported solid results and total loans to customers grew over $110 million from last year, marking the seventh consecutive quarter of growth.  Hawaii's gradual economic recovery continues to be reflected in American's declining credit costs as asset quality continued to improve," said Constance H. Lau, HEI president and chief executive officer.

"Reducing our dependence on oil is critical to the future of Hawaii, our company and our customers," said Lau.  Since the end of 2010, close to 90% of the increase in the typical Oahu customer's bill was due to the increase in the cost of oil.  "With the ongoing impact of high oil prices on customer bills, our utilities' rate of renewable integration remains a critical priority to help stabilize customer bills," said Lau. 

HAWAIIAN ELECTRIC COMPANY CONTINUES TO INVEST IN CLEAN ENERGY AND RELIABILITY

Hawaiian Electric Company's[1] net income for the second quarter of 2012 was $29.4 million, compared to $27.3 million in the linked quarter and $17.0 million in the second quarter of 2011.    

Compared to the second quarter of 2011, the main driver of the improvement was the recovery of costs for reliability and clean energy investments on Oahu which became effective in July 2011.  As indicated last quarter, in 2011 the Oahu utility continued to spend in advance of revenues to recover the costs for its clean energy and reliability initiatives which put pressure on earnings for the first half of 2011.   

Operations and maintenance (O&M) expenses[2] (after-tax) were $2 million lower for the second quarter of 2012 compared to the second quarter of 2011 largely due to $2 million (after-tax) lower administrative and general expenses from a regulatory change in the capitalization of costs which became effective in July 2011.  Due to the timing of projects planned in the second half of the year, management continues to expect O&M expenses to be 6% higher for the full year 2012 compared to 2011.

[1] Hawaiian Electric Company, unless otherwise defined, refers to the three utilities, Hawaiian Electric Company, Inc. on Oahu, Maui Electric Company, Limited, and Hawaii Electric Light Company, Inc.

[2] Excludes demand side management (DSM) program costs. DSM program costs were $2 million in second quarter of 2012 compared to $1 million in second quarter of 2011. DSM program costs are recovered through a surcharge.

AMERICAN SAVINGS BANK CONTINUES TO DELIVER SOLID RESULTS

American's net income for the second quarter of 2012 was $14.2 million compared to $15.9 million in the first, or linked, quarter of 2012 and $15.2 million in the second quarter of 2011.  Net income declined by $1.7 million compared to the linked quarter which included the release of tax-related reserves of approximately $1 million (after-tax).  The remainder of the decrease was largely due to higher noninterest expenses for new products and business projects, some of which were originally expected to be incurred in the first quarter. These were partially offset by $1 million lower provision for loan losses from continued improvement in credit quality and portfolio mix.

Compared to the same quarter of 2011, net income declined by $1.0 million due to the non-recurring insurance gain in the second quarter of 2011.

Overall, American continued to deliver solid results in second quarter 2012 with a return on average equity of 11.35% and a return on average assets of 1.15%. 

Also refer to the American news release issued on July 30, 2012.

HOLDING AND OTHER COMPANIES

The holding and other companies' net losses were $4.8 million in the second quarter of 2012 compared to $5.1 million in the second quarter of 2011.

BOARD DECLARES QUARTERLY DIVIDEND

On August 2, 2012, the board of directors maintained HEI's quarterly cash dividend of 31 cents per share, payable on September 12, 2012, to shareholders of record at the close of business on August 15, 2012 (ex-dividend date is August 13, 2012).  The dividend is equivalent to an annual rate of $1.24 per share.

Dividends have been paid continuously since 1901.  At the indicated annual dividend rate and the closing share price on August 1, 2012 of $28.38, HEI's yield is 4.4%.

WEBCAST AND TELECONFERENCE

Hawaiian Electric Industries, Inc. will conduct a webcast and teleconference call to review its second quarter 2012 earnings on Friday, August 3, 2012, at 8:00 a.m. Hawaii time (2:00 p.m. Eastern time).  The event can be accessed through HEI's website at www.hei.com or by dialing (800) 706-7748, passcode:  32260721 for the teleconference call.  The presentation for the webcast will be on HEI's website under the headings "Investor Relations," "News & Events" and "Presentations & Webcasts."  HEI and Hawaiian Electric Company, Inc. (HECO) intend to continue to use HEI's website, www.hei.com, as a means of disclosing additional information.  Such disclosures will be included on HEI's website in the Investor Relations section.  Accordingly, investors should routinely monitor such portions of HEI's website, in addition to following HEI's, HECO's and American's press releases, Securities and Exchange Commission (SEC) filings and public conference calls and webcasts.  The information on HEI's website is not incorporated by reference in this document or in HEI's and HECO'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 in order to review documents filed with and issued by the PUC.  No information on the PUC website is incorporated by reference in this document or in HEI's and HECO's SEC filings.

An online replay of the webcast will be available at the same website beginning about two hours after the event.  Replays of the teleconference call will also be available approximately two hours after the event through August 17, 2012, by dialing (888) 286-8010, passcode: 61628408.

HEI supplies power to over 400,000 customers or 95% of Hawaii's population through its electric utilities, HECO, Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited and provides a wide array of banking and other financial services to consumers and businesses through American, one of Hawaii's largest financial institutions.

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 "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 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 "Forward-Looking Statements" and "Risk Factors" discussions (which are incorporated by reference herein) set forth in HEI's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 and HEI's future periodic reports that discuss important factors that could cause HEI's results to differ materially from those anticipated in such statements.  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, HECO, American 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.

 













Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries






CONSOLIDATED STATEMENTS OF INCOME






(Unaudited)



Three months


Six months





ended June 30,


ended June 30,

(in thousands, except per share amounts) 


2012


2011


2012


2011

Revenues










Electric utility



$  789,552


$  728,738


$1,539,162


$1,374,073

Bank




64,721


66,318


129,973


131,631

Other




(5)


(737)


(7)


(752)

    Total revenues



854,268


794,319


1,669,128


1,504,952

Expenses










Electric utility



728,056


686,220


1,420,412


1,286,347

Bank




42,847


42,498


85,187


86,057

Other




3,959


1,940


8,307


5,512

    Total expenses



774,862


730,658


1,513,906


1,377,916

Operating income (loss)










Electric utility



61,496


42,518


118,750


87,726

Bank




21,874


23,820


44,786


45,574

Other




(3,964)


(2,677)


(8,314)


(6,264)

     Total operating income 



79,406


63,661


155,222


127,036

Interest expense–other than on deposit liabilities 










and other bank borrowings



(20,199)


(24,177)


(38,738)


(44,317)

Allowance for borrowed funds used during construction


893


553


1,763


1,073

Allowance for equity funds used during construction


1,997


1,317


3,937


2,561

Income before income taxes



62,097


41,354


122,184


86,353

Income taxes



22,824


13,742


44,122


29,806

Net income 



39,273


27,612


78,062


56,547

Preferred stock dividends of subsidiaries


473


473


946


946

Net income for common stock



$    38,800


$    27,139


$     77,116


$     55,601

Basic earnings per common share


$       0.40


$       0.28


$        0.80


$        0.58

Diluted earnings per common share


$       0.40


$       0.28


$        0.80


$        0.58

Dividends per common share



$       0.31


$       0.31


$        0.62


$        0.62

Weighted-average number of common shares outstanding


96,693


95,393


96,430


95,107

Adjusted weighted-average shares


96,979


95,555


96,819


95,394












Net income (loss) for common stock  by segment










Electric utility



$    29,376


$    17,024


$     56,676


$     36,213


Bank



14,189


15,195


30,066


29,046


Other



(4,765)


(5,080)


(9,626)


(9,658)

Net income for common stock



$    38,800


$    27,139


$     77,116


$     55,601

Comprehensive income attributable to common shareholders


$    40,350


$    31,606


$     78,977


$     58,230












This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries



CONSOLIDATED BALANCE SHEETS



(Unaudited)




June 30,

December 31,

(dollars in thousands)

2012

2011

Assets



Cash and cash equivalents

$    207,549

$      270,265

Accounts receivable and unbilled revenues, net

386,750

344,322

Available-for-sale investment and mortgage-related securities

639,112

624,331

Investment in stock of Federal Home Loan Bank of Seattle 

97,764

97,764

Loans receivable held for investment, net

3,695,474

3,642,818

Loans held for sale, at lower of cost or fair value

11,915

9,601

Property, plant and equipment, net of accumulated depreciation of



    $2,086,098 in 2012 and $2,049,821 in 2011 

3,436,021

3,334,501

Regulatory assets

698,448

669,389

Other

566,734

519,296

Goodwill

82,190

82,190

     Total assets

$  9,821,957

$   9,594,477

Liabilities and shareholders' equity



Liabilities



Accounts payable

$    231,871

$      216,176

Interest and dividends payable

24,897

25,041

Deposit liabilities

4,136,741

4,070,032

Short-term borrowings—other than bank

96,240

68,821

Other bank borrowings

218,673

233,229

Long-term debt, net—other than bank

1,429,653

1,340,070

Deferred income taxes

396,806

354,051

Regulatory liabilities

317,958

315,466

Contributions in aid of construction

381,206

356,203

Retirement benefits liability

497,687

530,410

Other

480,156

521,979

     Total liabilities

8,211,888

8,031,478




Preferred stock of subsidiaries - not subject to mandatory redemption

34,293

34,293




Shareholders' equity



Preferred stock, no par value, authorized 10,000,000 shares; issued:  none

-

-

Common stock, no par value, authorized 200,000,000 shares; issued



    and outstanding:  97,023,148 shares in 2012 and 96,038,328 shares in 2011 

1,377,426

1,349,446

Retained earnings

215,626

198,397

Accumulated other comprehensive loss, net of tax benefits

(17,276)

(19,137)

     Total shareholders' equity

1,575,776

1,528,706

     Total liabilities and shareholders' equity

$  9,821,957

$   9,594,477




This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries



CONSOLIDATED STATEMENTS OF CASH FLOWS



(Unaudited)



Six months ended June 30

2012

2011

(in thousands)



Cash flows from operating activities



Net income 

$        78,062

$        56,547

Adjustments to reconcile net income to net cash provided by (used in) operating activities



      Depreciation of property, plant and equipment

75,517

75,243

      Other amortization

2,999

11,965

      Provision for loan losses

5,924

7,105

      Loans receivable originated and purchased, held for sale

(161,344)

(64,028)

      Proceeds from sale of loans receivable, held for sale

161,713

71,829

      Change in deferred income taxes

41,541

39,051

      Change in excess tax benefits from share-based payment arrangements

(40)

(55)

      Allowance for equity funds used during construction

(3,937)

(2,561)

      Change in cash overdraft

-

(2,305)

      Changes in assets and liabilities



           Increase in accounts receivable and unbilled revenues, net

(42,428)

(52,537)

           Increase in fuel oil stock

(35,893)

(6,509)

           Increase (decrease) in accounts, interest and dividends payable

3,578

(41,989)

           Change in prepaid and accrued income taxes and utility revenue taxes

(12,998)

8,333

           Contributions to defined benefit pension and other postretirement benefit plans

(53,356)

(37,556)

           Change in other assets and liabilities

(62,910)

(7,352)

Net cash provided by (used in) operating activities

(3,572)

55,181

Cash flows from investing activities



Available-for-sale investment and mortgage-related securities purchased

(93,808)

(193,119)

Principal repayments on available-for-sale investment and mortgage-related securities

75,407

161,526

Proceeds from sale of available-for-sale investment and mortgage-related securities

3,548

2,066

Net increase in loans held for investment

(61,214)

(104,824)

Proceeds from sale of real estate acquired in settlement of loans

6,036

3,977

Capital expenditures

(145,263)

(89,088)

Contributions in aid of construction

26,981

8,153

Other

-

(2,911)

Net cash used in investing activities

(188,313)

(214,220)

Cash flows from financing activities



Net increase in deposit liabilities

66,709

79,577

Net increase (decrease) in short-term borrowings with original maturities of three months or less

27,419

(24,923)

Net increase (decrease) in retail repurchase agreements

(14,556)

1,803

Proceeds from issuance of long-term debt

417,000

125,000

Repayment of long-term debt

(328,500)

(50,000)

Change in excess tax benefits from share-based payment arrangements

40

55

Net proceeds from issuance of common stock

11,909

12,071

Common stock dividends

(47,851)

(47,331)

Preferred stock dividends of subsidiaries

(946)

(946)

Other

(2,055)

(172)

Net cash provided by financing activities

129,169

95,134

Net decrease in cash and cash equivalents 

(62,716)

(63,905)

Cash and cash equivalents, beginning of period

270,265

330,651

Cash and cash equivalents, end of period

$      207,549

$      266,746




This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

Hawaiian Electric Company, Inc. (HECO) and Subsidiaries 





CONSOLIDATED STATEMENTS OF INCOME










(Unaudited)


Three months ended


Six months ended



June 30,


June 30,

(dollars in thousands, except per barrel amounts)


2012


2011


2012


2011










Operating revenues


$   787,685


$   727,652


$ 1,535,623


$1,371,953

Operating expenses









Fuel oil


331,064


312,141


658,903


573,001

Purchased power


188,352


171,737


353,141


319,695

Other operation 


64,516


67,388


126,365


132,919

Maintenance


31,235


31,276


61,273


60,472

Depreciation


36,133


36,258


72,615


72,690

Taxes, other than income taxes


76,304


67,152


147,299


127,147

Income taxes


18,574


11,160


35,939


22,770

     Total operating expenses


746,178


697,112


1,455,535


1,308,694

Operating income


41,507


30,540


80,088


63,259

Other income









Allowance for equity funds used during construction


1,997


1,317


3,937


2,561

Other, net


1,363


898


2,628


1,808

     Total other income


3,360


2,215


6,565


4,369

Interest and other charges









Interest on long-term debt


15,323


14,383


29,706


28,766

Amortization of net bond premium and expense


661


766


1,406


1,549

Other interest charges (credits)


(99)


636


(370)


1,175

Allowance for borrowed funds used during construction


(893)


(553)


(1,763)


(1,073)

     Total interest and other charges


14,992


15,232


28,979


30,417

Net income 


29,875


17,523


57,674


37,211

Preferred stock dividends of subsidiaries


229


229


458


458

Net income attributable to HECO


29,646


17,294


57,216


36,753

Preferred stock dividends of HECO


270


270


540


540

Net income for common stock


$     29,376


$     17,024


$     56,676


$     36,213

Comprehensive income attributable to common shareholder


$     29,451


$     17,071


$     56,828


$     36,287

OTHER ELECTRIC UTILITY INFORMATION





Kilowatthour sales (millions)









   HECO


1,713


1,793


3,409


3,578

   HELCO


265


272


536


545

   MECO


279


296


563


588



2,257


2,361


4,508


4,711

Wet-bulb temperature (Oahu average; degrees Fahrenheit)


68.0


70.5


67.6


69.3

Cooling degree days (Oahu)


1,150


1,257


2,011


2,177

Average fuel oil cost per barrel


$145.27


$123.69


$139.63


$112.23














Twelve months ended June 30

Return on average common equity (%) (simple average)






2012


2011

   HECO






9.44


4.50

   HELCO






8.77


9.01

   MECO






6.11


7.11

   HECO Consolidated






8.73


5.83










This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and the consolidated financial statements and the notes thereto in HECO's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

Hawaiian Electric Company, Inc. (HECO) and Subsidiaries



CONSOLIDATED BALANCE SHEETS




(Unaudited)





June 30,

December 31,


(dollars in thousands, except par value)

2012

2011


Assets




Utility plant, at cost




Land

$           51,537

$           51,514


Plant and equipment

5,156,323

5,052,027


Less accumulated depreciation

(2,004,465)

(1,966,894)


Construction in progress

172,986

138,838


     Net utility plant

3,376,381

3,275,485


Current assets




Cash and cash equivalents

5,937

48,806


Customer accounts receivable, net 

200,444

183,328


Accrued unbilled revenues, net

169,879

137,826


Other accounts receivable, net

2,465

8,623


Fuel oil stock, at average cost

207,441

171,548


Materials and supplies, at average cost

50,787

43,188


Prepayments and other

43,401

36,667


Regulatory assets

30,372

20,283


     Total current assets 

710,726

650,269


Other long-term assets




Regulatory assets

668,076

649,106


Unamortized debt expense

11,267

12,786


Other

91,100

86,361


     Total other long-term assets

770,443

748,253


          Total assets

$      4,857,550

$      4,674,007


Capitalization and liabilities




Capitalization




Common stock, $6 2/3 par value, authorized 50,000,000 shares; outstanding 




    14,233,723 shares in 2012 and 2011

$           94,911

$           94,911


Premium on capital stock

426,922

426,921


Retained earnings

901,195

881,041


Accumulated other comprehensive income (loss), net of income taxes

120

(32)


     Common stock equity

1,423,148

1,402,841


Cumulative preferred stock – not subject to mandatory redemption

34,293

34,293


Long-term debt, net

1,147,653

1,000,570


     Total capitalization

2,605,094

2,437,704


Current liabilities




Short-term borrowings – nonaffiliates

44,242

-


Current portion of long-term debt

-

57,500


Accounts payable

206,484

188,580


Interest and preferred dividends payable

19,014

19,483


Taxes accrued

217,321

230,076


Other

55,447

69,353


     Total current liabilities

542,508

564,992


Deferred credits and other liabilities




Deferred income taxes

380,484

337,863


Regulatory liabilities

317,958

315,466


Unamortized tax credits

63,437

60,614


Retirement benefits liability

463,630

495,121


Other

103,233

106,044


     Total deferred credits and other liabilities

1,328,742

1,315,108


Contributions in aid of construction

381,206

356,203


          Total capitalization and liabilities

$      4,857,550

$      4,674,007






This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and the consolidated financial statements and the notes thereto in HECO's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

Hawaiian Electric Company, Inc. (HECO) and Subsidiaries



CONSOLIDATED STATEMENTS OF CASH FLOWS



(Unaudited)



Six months ended June 30

2012

2011

(in thousands)



Cash flows from operating activities



Net income

$    57,674

$    37,211

Adjustments to reconcile net income to net cash provided by (used in) 



   operating activities



      Depreciation of property, plant and equipment

72,615

72,690

      Other amortization

2,770

10,833

      Change in deferred income taxes

42,524

33,456

      Change in tax credits, net

2,880

1,556

      Allowance for equity funds used during construction

(3,937)

(2,561)

      Change in cash overdraft

-

(2,305)

      Changes in assets and liabilities



           Increase in accounts receivable

(10,958)

(33,312)

           Increase in accrued unbilled revenues

(32,053)

(18,479)

           Increase in fuel oil stock

(35,893)

(6,509)

           Increase in materials and supplies

(7,599)

(1,490)

           Increase in regulatory assets

(35,476)

(14,498)

           Increase (decrease) in accounts payable

5,931

(48,288)

           Change in prepaid and accrued income taxes and utility 
               revenue taxes

(21,141)

12,178

           Contributions to defined benefit pension and other postretirement
                benefit plans

(52,086)

(37,021)

           Change in other assets and liabilities

(6,776)

12,596

Net cash provided by (used in) operating activities

(21,525)

16,057

Cash flows from investing activities



Capital expenditures

(141,618)

(85,395)

Contributions in aid of construction

26,981

8,153

Other

-

77

Net cash used in investing activities

(114,637)

(77,165)

Cash flows from financing activities



Common stock dividends

(36,522)

(35,279)

Preferred stock dividends of HECO and subsidiaries

(998)

(998)

Proceeds from issuance of long-term debt

417,000

-

Repayment of long-term debt

(328,500)

-

Net increase in short-term borrowings from nonaffiliates and 



     affiliate with original maturities of three months or less

44,242

-

Other

(1,929)

(17)

Net cash provided by (used in) financing activities

93,293

(36,294)

Net decrease in cash and cash equivalents

(42,869)

(97,402)

Cash and cash equivalents, beginning of the period

48,806

122,936

Cash and cash equivalents, end of period

$      5,937

$    25,534




This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and the consolidated financial statements and the notes thereto in HECO's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

American Savings Bank, F.S.B. 










STATEMENTS OF INCOME DATA










(Unaudited)


Three months ended


Six months ended




June 30, 


March 31, 


June 30, 


June 30,


(in thousands)


2012


2012


2011


2012


2011


Interest income












Interest and fees on loans


$   44,473


$   44,888


$   45,648


$ 89,361


$ 91,745


Interest on investment and mortgage-related securities


3,297


3,805


3,793


7,102


7,562


     Total interest income


47,770


48,693


49,441


96,463


99,307


Interest expense












Interest on deposit liabilities


1,696


1,779


2,387


3,475


4,980


Interest on other borrowings


1,214


1,261


1,382


2,475


2,749


     Total interest expense


2,910


3,040


3,769


5,950


7,729


Net interest income


44,860


45,653


45,672


90,513


91,578


Provision for loan losses


2,378


3,546


2,555


5,924


7,105


Net interest income after provision for loan losses


42,482


42,107


43,117


84,589


84,473


Noninterest income












Fees from other financial services


7,463


7,337


7,240


14,800


14,186


Fee income on deposit liabilities


4,322


4,278


4,599


8,600


9,048


Fee income on other financial products


1,532


1,549


1,861


3,081


3,534


Other income


3,634


3,395


3,177


7,029


5,556


     Total noninterest income


16,951


16,559


16,877


33,510


32,324


Noninterest expense












Compensation and employee benefits


18,696


18,646


18,166


37,342


35,671


Occupancy


4,241


4,225


4,288


8,466


8,528


Data processing


2,489


2,111


2,058


4,600


4,028


Services


2,221


1,783


1,949


4,004


3,720


Equipment


1,807


1,730


1,772


3,537


3,429


Other expense


8,106


6,707


7,955


14,813


15,888


     Total noninterest expense


37,560


35,202


36,188


72,762


71,264


Income before income taxes


21,873


23,464


23,806


45,337


45,533


Income taxes 


7,684


7,587


8,611


15,271


16,487


Net income


$   14,189


$   15,877


$   15,195


$ 30,066


$ 29,046


Comprehensive income


$   15,456


$   15,899


$   19,439


$ 31,355


$ 31,025














OTHER BANK INFORMATION (%)












Return on average assets 


1.15


1.29


1.24


1.22


1.20


Return on average equity  


11.35


12.87


12.19


12.11


11.70


Return on average tangible common equity


13.58


15.44


14.59


14.50


14.02


Net interest margin


3.97


4.04


4.07


4.01


4.11


Net charge-offs to average loans outstanding (annualized) 


0.19


0.28


0.45


0.24


0.47


Efficiency ratio


60


56


57


58


57


As of period end












Nonperforming assets to loans outstanding and real estate owned **

1.84


2.02


1.69






Allowance for loan losses to loans outstanding 


1.06


1.05


1.09






Tier-1 leverage ratio **


9.2


9.1


9.1






Total risk-based capital
 ratio **


12.8


12.9


13.3






Tangible common equity to total assets


8.58


8.46


8.63


















**  Regulatory basis
























This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

American Savings Bank, F.S.B. 



BALANCE SHEETS DATA



(Unaudited)




June 30,

December 31,

(in thousands)

2012

2011




Assets



Cash and cash equivalents

$      201,193

$      219,678

Available-for-sale investment and mortgage-related securities

639,112

624,331

Investment in stock of Federal Home Loan Bank of Seattle

97,764

97,764

Loans receivable held for investment

3,734,937

3,680,724

   Allowance for loan losses

(39,463)

(37,906)

      Loans receivable held for investment, net

3,695,474

3,642,818

Loans held for sale, at lower of cost or fair value

11,915

9,601

Other

236,547

233,592

Goodwill

82,190

82,190

     Total assets

$    4,964,195

$    4,909,974




Liabilities and shareholder's equity



Deposit liabilities–noninterest-bearing

$    1,076,579

$      993,828

Deposit liabilities–interest-bearing

3,060,162

3,076,204

Other borrowings

218,673

233,229

Other

107,902

118,078

     Total liabilities

4,463,316

4,421,339




Common stock

332,769

331,880

Retained earnings

176,192

166,126

Accumulated other comprehensive loss, net of tax benefits

(8,082)

(9,371)

     Total shareholder's equity

500,879

488,635

     Total liabilities and shareholder's equity

$    4,964,195

$    4,909,974




This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

Contact:        

Shelee M.T. Kimura



Manager, Investor Relations &            

Telephone: (808) 543-7384


Strategic Planning 

E-mail: skimura@hei.com

(Photo: http://photos.prnewswire.com/prnh/20110411/LA80136LOGO)

SOURCE Hawaiian Electric Industries, Inc.



RELATED LINKS
http://www.hei.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.