0000354707false00003547072023-10-302023-10-30




UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report: October 30, 2023
Exact Name of RegistrantCommissionI.R.S. Employer
as Specified in Its CharterFile NumberIdentification No.
Hawaiian Electric Industries, Inc.1-850399-0208097


State of Hawaii
(State or other jurisdiction of incorporation)
 
1001 Bishop Street, Suite 2900, Honolulu, Hawaii  96813
(Address of principal executive offices and zip code)
 
Registrant’s telephone number, including area code:
 (808) 543-5662
 
Not applicable
(Former name or former address, if changed since last report.)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to 12(b) of the Act:
RegistrantTitle of each classTrading Symbol(s)Name of each exchange on which registered
Hawaiian Electric Industries, Inc.Common Stock, Without Par ValueHENew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule12b-2 of the Securities Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act. ☐


Item 7.01 Regulation FD Disclosure.
    On October 30, 2023, HEI issued a news release, “American Savings Bank Reports Third Quarter 2023 Financial Results.” This news release is furnished as Exhibit 99.“


Item 9.01 Financial Statements and Exhibits.
    
(d) Exhibits
News release, dated October 30, 2023, “American Savings Bank Reports Third Quarter 2023 Financial Results”
104Cover Page Interactive Data File (embedded within the Inline XBRL document)

The information furnished in connection with this current report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.















SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
HAWAIIAN ELECTRIC INDUSTRIES, INC.
(Registrant)
/s/ Scott T. DeGhetto
Scott T. DeGhetto
Executive Vice President,
   Chief Financial Officer and Treasurer
(Principal Financial Officer)
Date: October 30, 2023

1

Exhibit 99
revisedlogoa.jpg
NEWS RELEASE
October 30, 2023
Contact:Mateo GarciaTelephone: (808) 543-7300
Director, Investor RelationsE-mail: ir@hei.com

AMERICAN SAVINGS BANK REPORTS THIRD QUARTER 2023 FINANCIAL RESULTS
3Q 2023 Net Income of $11.4 million
$8.6 Million of Maui Wildfire-Related Expenses, Including $5.9 Million of Additional Provision
Solid Credit Quality and Capital Position
Liquidity Remains Strong

HONOLULU - American Savings Bank, F.S.B. (ASB), a wholly owned subsidiary of Hawaiian Electric Industries, Inc. (NYSE - HE), today reported third quarter 2023 net income of $11.4 million, compared to $20.2 million in the second quarter of 2023 and $20.8 million in the third quarter of 2022. Core net income1 for the third quarter of 2023 was $17.6 million.
“American Savings Bank continues to be well-positioned to support our community with a strong capital position, excellent credit quality, lending capacity and ample liquidity,” said Ann Teranishi, president and chief executive officer of ASB. “Despite the economic impacts of the wildfires, our customers and business have proved resilient. I’m very proud of our ASB teammates for delivering exceptional service through this difficult period. Our hearts are with the people of Maui, and we remain committed to supporting the recovery and rebuild effort.”
Financial Highlights
Third quarter 2023 net interest income was $62.6 million compared to $63.2 million in the second, or linked quarter of 2023 and $65.7 million in the third quarter of 2022. The lower net interest income compared to the linked and prior year quarters was primarily due to higher interest expense from rising deposit costs resulting from growth in higher yielding certificates of deposit. The lower net interest income compared to the prior year quarter also included higher interest expense from increased wholesale borrowings, and lower interest and dividends on
1 Core net income is a non-GAAP measure which excludes Maui wildfire-related after-tax costs. See the “Explanation of ASB’s Use of Certain Unaudited Non-GAAP Measures” and the related GAAP reconciliation.
1

investment securities. Net interest margin for the third quarter of 2023 was 2.70%, compared to 2.75% in the linked quarter, and 2.96% in the third quarter of last year.
The third quarter 2023 provision for credit losses was $8.8 million, compared to $0.04 million in the linked quarter and a $0.2 million negative provision for credit losses in the third quarter of 2022. The higher provision for credit losses for the quarter was primarily due to $5.9 million in additional credit reserves related to borrowers impacted by the Maui wildfires and the resulting economic disruption. As of September 30, 2023, ASB’s allowance for credit losses to outstanding loans was 1.23% compared to 1.13% as of June 30, 2023 and 1.24% as of September 30, 2022.
The net charge-off ratio for the third quarter of 2023 was 0.07%, compared to 0.14% in the linked quarter and 0.03% in the third quarter of 2022. Nonaccrual loans as a percentage of total loans receivable held for investment were 0.16%, compared to 0.22% in the linked quarter and 0.35% in the prior year quarter.
Noninterest income was $15.3 million in the third quarter of 2023 compared to $15.6 million in the linked quarter and $13.0 million in the third quarter of 2022. The decrease compared to the linked quarter was primarily due to a gain on sale of real estate recognized in the linked quarter and lower fee income, partially offset by higher bank-owned life insurance income. The increase compared to the prior year quarter was primarily due to higher bank-owned life insurance income.
Noninterest expense was $56.3 million compared to $53.8 million in the linked quarter and $51.6 million in the third quarter of 2022. The increase compared to the linked and prior year quarters was primarily due to wildfire-related expenses incurred during the quarter, including $1.3 million in professional services costs and $1.0 million in other extraordinary expenses.
Total loans were $6.2 billion as of September 30, 2023, up 3.6% from December 31, 2022, primarily reflecting growth in the commercial real estate and residential mortgage portfolios.
Total deposits were $8.2 billion as of September 30, 2023, an increase of 0.7% from December 31, 2022. Core deposits declined 5.1%, while certificates of deposits increased 71.8%. As of September 30, 2023, 87% of deposits were F.D.I.C. insured or fully collateralized, up slightly from 86% as of June 30, 2023, with approximately 77% of deposits F.D.I.C. insured. For the third quarter of 2023, the average cost of funds was 1.02%, up 19 basis points versus the linked quarter and up 89 basis points versus the prior year quarter.
2

Wholesale funding totaled $750 million as of September 30, 2023, unchanged from June 30, 2023.
For the third quarter of 2023, return on average equity was 9.2%, compared to 16.2% in the linked quarter and 15.1% in the third quarter of 2022. Return on average assets was 0.47% for the third quarter of 2023, compared to 0.84% in the linked quarter and 0.89% in the prior year quarter. Excluding Maui wildfire-related costs, core returns on average equity and average assets2 were 14.3% and 0.73%, respectively.
In the third quarter of 2023, ASB paid dividends of $14.0 million to HEI. ASB had a Tier 1 leverage ratio of 7.7% as of September 30, 2023.
HEI EARNINGS RELEASE, HEI WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS AND 2023 GUIDANCE
Concurrent with ASB’s regulatory filing 30 days after the end of the quarter, ASB announced its third quarter 2023 financial results today. Please note that these reported results relate only to ASB and are not necessarily indicative of HEI’s consolidated financial results for the third quarter 2023.
HEI plans to announce its third quarter 2023 consolidated financial results on Thursday, November 9, 2023 and will also conduct a webcast and conference call at 11:30 a.m. Hawaii time (4:30 p.m. Eastern time) that same day to discuss its consolidated earnings, including ASB’s earnings, and 2023 guidance.
To listen to the conference call, dial 1-888-660-6377 (U.S.) or 1-929-203-0797 (international) and enter passcode 2393042. Parties may also access presentation materials (which include reconciliation of non-GAAP measures) 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 November 23, 2023. To access the audio replay, dial 1-800-770-2030 (U.S.) or 1-647-362-9199 (international) and enter passcode 2393042.
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

___________________
2     Core returns on average equity and average assets are non-GAAP measures which exclude Maui wildfire-related after-tax costs. See the “Explanation of ASB’s Use of Certain Unaudited Non-GAAP Measures” and the related GAAP reconciliation.
3

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 https://hpuc.my.site.com/cdms/s/ 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.
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.
NON-GAAP MEASURES
Core net income is a non-GAAP measure which excludes Maui wildfire-related after-tax costs. See “Explanation of ASB’s Use of Certain Unaudited Non-GAAP Measures” and related GAAP reconciliations at the end of this release.
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
4

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, 2022 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.

###
5

American Savings Bank, F.S.B.
STATEMENTS OF INCOME DATA
(Unaudited)
Three months ended Nine months ended September 30
(in thousands)September 30,
2023		June 30,
2023		September 30,
2022		20232022
Interest and dividend income   
Interest and fees on loans$71,540 $67,966 $53,365 $204,348 $147,499 
Interest and dividends on investment securities14,096 13,775 15,052 42,508 43,729 
Total interest and dividend income85,636 81,741 68,417 246,856 191,228 
Interest expense
Interest on deposit liabilities14,446 9,661 1,704 30,944 3,572 
Interest on other borrowings8,598 8,852 1,055 25,171 1,199 
Total interest expense23,044 18,513 2,759 56,115 4,771 
Net interest income62,592 63,228 65,658 190,741 186,457 
Provision for credit losses8,835 43 (186)10,053 (692)
Net interest income after provision for credit losses53,757 63,185 65,844 180,688 187,149 
Noninterest income
Fees from other financial services4,703 5,009 4,763 14,391 15,066 
Fee income on deposit liabilities4,924 4,504 4,879 14,027 14,122 
Fee income on other financial products2,440 2,768 2,416 7,952 7,663 
Bank-owned life insurance2,303 1,955 122 5,683 661 
Mortgage banking income341 230 181 701 1,630 
Gain on sale of real estate— 495 — 495 1,002 
Other income, net627 678 633 2,106 1,480 
Total noninterest income15,338 15,639 12,994 45,355 41,624 
Noninterest expense
Compensation and employee benefits29,902 29,394 28,597 89,500 83,478 
Occupancy5,154 5,539 5,577 16,281 16,996 
Data processing5,133 5,095 4,509 15,240 13,144 
Services3,627 2,689 2,751 8,911 7,712 
Equipment3,125 2,957 2,432 8,728 7,163 
Office supplies, printing and postage1,022 1,109 1,123 3,296 3,256 
Marketing984 834 925 2,834 2,877 
Other expense7,399 6,152 5,643 19,742 14,542 
Total noninterest expense56,346 53,769 51,557 164,532 149,168 
Income before income taxes12,749 25,055 27,281 61,511 79,605 
Income taxes1,384 4,851 6,525 11,380 17,513 
Net income$11,365 $20,204 $20,756 $50,131 $62,092 
Comprehensive income (loss)$(22,866)$12,994 $(78,186)$27,120 $(248,126)
OTHER BANK INFORMATION (annualized %, except as of period end)
Return on average assets0.47 0.84 0.89 0.70 0.90 
Return on average equity9.19 16.20 15.11 13.62 13.65 
Return on average tangible common equity11.02 19.40 17.77 16.36 15.79 
Net interest margin2.70 2.75 2.96 2.77 2.87 
Efficiency ratio72.30 68.18 65.55 69.69 65.40 
Net charge-offs to average loans outstanding0.07 0.14 0.03 0.11 0.01 
As of period end
Nonaccrual loans to loans receivable held for investment0.16 0.22 0.35 
Allowance for credit losses to loans outstanding1.23 1.13 1.24 
Tangible common equity to tangible assets3.9 4.3 4.0 
Tier-1 leverage ratio 7.7 7.8 7.7 
Dividend paid to HEI (via ASB Hawaii, Inc.) ($ in millions)$14.0 $11.0 $5.0 $39.0 $32.0 
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the SEC. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.
6

American Savings Bank, F.S.B.
BALANCE SHEETS DATA
(Unaudited)
(in thousands)September 30, 2023December 31, 2022
Assets 
Cash and due from banks$139,059 $153,042 
Interest-bearing deposits124,531 3,107 
Cash and cash equivalents263,590 156,149 
Investment securities
Available-for-sale, at fair value1,266,412 1,429,667 
Held-to-maturity, at amortized cost1,212,005 1,251,747 
Stock in Federal Home Loan Bank, at cost18,000 26,560 
Loans held for investment6,191,006 5,978,906 
Allowance for credit losses(76,366)(72,216)
Net loans6,114,640 5,906,690 
Loans held for sale, at lower of cost or fair value2,171 824 
Other698,420 692,143 
Goodwill82,190 82,190 
Total assets$9,657,428 $9,545,970 
Liabilities and shareholder’s equity
Deposit liabilities–noninterest-bearing$2,573,010 $2,811,077 
Deposit liabilities–interest-bearing5,651,341 5,358,619 
Other borrowings750,000 695,120 
Other224,136 212,269 
Total liabilities9,198,487 9,077,085 
Common stock1 1 
Additional paid-in capital357,742 355,806 
Retained earnings460,824 449,693 
Accumulated other comprehensive loss, net of tax benefits  
     Net unrealized losses on securities$(350,234) $(328,904) 
     Retirement benefit plans(9,392)(359,626)(7,711)(336,615)
Total shareholder’s equity458,941 468,885 
Total liabilities and shareholder’s equity$9,657,428 $9,545,970 

This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the SEC.


7

Explanation of ASB’s Use of Certain Unaudited Non-GAAP Measures

HEI and ASB management use certain non-GAAP measures to evaluate the performance of HEI and the bank.
Management believes these non-GAAP measures provide useful information and are a better indicator of the companies’ core operating activities. Core earnings and other financial measures as presented here may not be comparable to similarly titled measures used by other companies. The accompanying tables provide a reconciliation of reported GAAP1 earnings to non-GAAP core earnings and returns on average equity and average assets for the bank.
The reconciling adjustments from GAAP earnings to core earnings are limited to the costs related to the recent Maui wildfires. Management does not consider these items to be representative of the company’s fundamental core earnings.

Reconciliation of GAAP1 to non-GAAP Measures
American Savings Bank F.S.B.
Unaudited
(in thousands)Three months ended September 30, 2023Nine months ended September 30, 2023
Maui wildfire related costs
Pretax expenses:
Provision for credit losses$5,900 $5,900 
Professional services expense1,300 1,300 
Other expenses1,357 1,357 
Pretax expenses8,557 8,557 
Current income tax benefits(2,293)(2,293)
After-tax expenses$6,264 $6,264 
ASB net income
GAAP (as reported)$11,365 $50,131 
Excluding expense related to Maui wildfire (after tax):
Provision for credit losses 4,319 4,319 
Professional services expense 952 952 
Other expenses 993 993 
Maui wildfire related cost (after tax)6,2646,264 
Non-GAAP (core) net income$17,629 $56,395 


Three months ended September 30, 2023Nine months ended September 30, 2023
Ratios (annualized %)
Based on GAAP1
Return on average assets0.47 0.70 
Return on average equity9.19 13.62 
Return on average tangible common equity11.02 16.36 
Efficiency ratio72.30 69.69 
Based on Non-GAAP (core)
Return on average assets0.73 0.78 
Return on average equity14.25 15.32 
Return on average tangible common equity17.09 18.40 
Efficiency ratio68.89 68.56 

1 Accounting principles generally accepted in the United States of America
8
v3.23.3
Cover
Oct. 30, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 30, 2023
Entity Registrant Name Hawaiian Electric Industries, Inc.
Entity File Number 1-8503
Entity Tax Identification Number 99-0208097
Entity Incorporation, State or Country Code HI
Entity Address, Address Line One 1001 Bishop Street, Suite 2900
Entity Address, City or Town Honolulu
Entity Address, State or Province HI
Entity Address, Postal Zip Code 96813
City Area Code 808
Local Phone Number 543-5662
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of each class Common Stock, Without Par Value
Trading Symbol HE
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000354707
Amendment Flag false
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