Legal and Settlement Issues - HEI and Hawaiian Electric have agreed to contribute a total of $1.99 billion to settle tort-related legal claims from the Maui windstorm and wildfires, with payments structured in four equal annual installments of $479 million starting in late 2025 [269]. - The total defendant contribution for the settlement is approximately $4.04 billion, with HEI and Hawaiian Electric's share representing about 49.2% of this total [269]. - Incremental expenses related to the Maui windstorm and wildfires amounted to approximately $2.2 billion since August 8, 2023, including legal claims and other associated costs [298]. - The company expects to continue incurring legal expenditures related to the Maui windstorm and wildfires, despite some mitigation through insurance recoveries [298]. - Estimated wildfire liabilities accrued by the Utilities reached approximately $1.92 billion as of September 30, 2024, related to the Maui windstorm and wildfire claims [311]. - The Utilities revised their total settlement accrual to $1.92 billion, classifying the first $479 million installment as a current liability [394]. - Hawaiian Electric's cash and cash equivalents balance was $147.6 million as of September 30, 2024, an increase from $106.1 million as of December 31, 2023 [395]. - The ABL Facility allows borrowings of up to $250 million on a revolving basis, but the amount that could be drawn was temporarily limited to approximately $90 million due to accrued wildfire claims [401]. Financial Performance - In the third quarter of 2024, HEI and Hawaiian Electric recorded a decrease in kWh sales by 1.6% compared to the same period in 2023, attributed to the impact of the Maui windstorm and wildfires [282]. - Revenues for the three months ended September 30, 2024, increased by 4% to $938,383,000 compared to $901,873,000 in 2023, driven by growth in the electric utility and bank segments [291]. - Operating loss for the nine months ended September 30, 2024, was $(1,769,104,000), a significant decrease from operating income of $261,608,000 in 2023, primarily due to wildfire tort-related claims totaling $1.71 billion [292]. - Net loss for common stock for the nine months ended September 30, 2024, was $(1,357,764,000), compared to net income of $150,449,000 in 2023, reflecting lower performance in the electric utility and bank segments [292]. - The effective tax rate for the third quarter of 2024 was a 30% tax benefit, compared to a 15% tax expense in the same quarter of 2023, influenced by substantial pretax losses [293]. - The operating loss for Q3 2024 was $(45.156) million, significantly higher than $(8.806) million in Q3 2023, attributed to a $35.2 million impairment loss on long-lived assets at Pacific Current [305]. - The net loss for Q3 2024 was $(40.595) million, compared to $(13.708) million in Q3 2023, reflecting the same factors affecting the operating loss [305]. - For the first nine months of 2024, total revenues were $10.144 million, a decline of 30.5% from $14.540 million in the same period of 2023, mainly due to lower sales at Pacific Current subsidiaries [305]. - HEI and its subsidiaries incurred net losses of approximately $104 million and $1.36 billion for the three and nine months ended September 30, 2024, respectively [311]. - The company suspended dividends starting after the second quarter of 2023 to enhance liquidity and allocate cash for rebuilding efforts [323]. Economic and Market Conditions - The economic conditions in Hawaii remained stable with an unemployment rate of 2.9% as of September 2024, while the average daily passenger count increased by 3.9% compared to the previous year [282]. - Hawaii's unemployment rate in September 2024 was 2.9%, slightly lower than 3.0% in September 2023, while Maui County's unemployment is projected to average 4.0% in 2024 [299]. - The average daily passenger count in Hawaii increased by 3.9% compared to the previous year, although international visitor arrivals remained 22.8% below 2019 levels [299]. - The median sales price for single-family homes in Oahu increased by 4.8% to $1,112,722 compared to the same period in 2023, while the number of closed sales for condominiums decreased by 5.6% [300]. - The consumer price index in Hawaii increased by 4.2% over the last 12 months as of September 2024, impacting operational costs [329]. Utility Operations and Strategy - The Utilities aim to achieve a 70% reduction in carbon emissions from power generation by 2030, compared to a 2005 baseline, but expect delays due to supply chain disruptions and credit rating downgrades [343]. - The last coal-fired IPP plant in Hawaii ceased operations on September 1, 2022, removing approximately 10% of Oahu's generation from the Utilities' mix [344]. - The Utilities achieved a renewable portfolio standard (RPS) of 34.5% for 2020, exceeding the statutory target of 30% [346]. - The estimated cost for the full deployment of advanced metering infrastructure (AMI) under the Grid Modernization Strategy is approximately $143 million, with $129 million incurred to date [356]. - The Utilities have completed the formal GMS Phase 1 project, deploying about 448,000 advanced meters, servicing approximately 95% of total customers [356]. - The Public Safety Power Shutoff (PSPS) program is set to launch on July 1, 2024, to mitigate wildfire risks in high fire risk areas [341]. - The Utilities are developing an integrated Demand Response Portfolio Plan to enhance system operations and reduce costs for customers [352]. Banking and Financial Services - The net interest margin for ASB in the third quarter of 2024 was 2.82%, an increase from 2.79% in the previous quarter and 2.70% in the same quarter last year [283]. - Core deposits at ASB decreased by approximately 2.1% from year-end 2023, leading to an increase in overall funding costs [284]. - ASB recorded a net income of $19 million in Q3 2024, an increase of $8 million compared to $11 million in the same period in 2023 [425]. - Interest and dividend income increased to $262 million in Q3 2024 from $247 million in Q3 2023, a rise of 6.1% [426]. - Noninterest income rose to $50 million in Q3 2024, up from $45 million in Q3 2023, reflecting a 11.1% increase [426]. - Total revenues for the nine months ended September 30, 2024, reached $312 million, compared to $292 million for the same period in 2023, marking a 6.8% increase [426]. - The allowance for credit losses at the end of the period was $64.8 million, down from $76.4 million at the end of 2023 [445]. - ASB's Tier-1 leverage ratio as of September 30, 2024, was 8.6%, exceeding the regulatory requirement of 5.0% [452].

Financial Performance - HEI reported a consolidated net loss of $104.4 million, or $0.91 per share, for Q3 2024, which includes a $203.0 million accrual for estimated wildfire liabilities[1]. - Core net income for Q3 2024 was $52.2 million, down from $61.5 million in Q3 2023[3]. - Hawaiian Electric's net loss for Q3 2024 was $82.6 million, compared to net income of $43.5 million in Q3 2023, primarily due to a $121 million after-tax loss from wildfire liabilities[11]. - The net loss for common stock was $(104,402) thousand for the three months ended September 30, 2024, compared to a net income of $41,118 thousand in the same period of 2023[28]. - Basic earnings per share for the three months ended September 30, 2024, were $(0.91), down from $0.37 in the same period of 2023[28]. - GAAP net income for the three months ended September 30, 2024, was $(104,402) thousand, compared to $41,118 thousand in 2023, reflecting a significant decline[37]. - Non-GAAP (core) net income for the same period was $52,155 thousand, down from $61,508 thousand year-over-year[37]. - The company reported a GAAP diluted loss per share of $(0.91) for Q3 2024, compared to earnings of $0.37 per share in Q3 2023[37]. - Non-GAAP diluted earnings per share for Q3 2024 were $0.46, down from $0.56 in the same quarter of 2023[37]. Revenue and Expenses - Total revenues for the three months ended September 30, 2024, were $938,383 thousand, an increase from $901,873 thousand in the same period of 2023, representing a growth of approximately 4.3%[28]. - The electric utility segment reported revenues of $829,617 thousand for the three months ended September 30, 2024, compared to $794,987 thousand in the prior year, reflecting an increase of about 4.4%[28]. - Total expenses increased significantly to $1,064,931 thousand for the three months ended September 30, 2024, from $826,762 thousand in the same period of 2023, marking a rise of approximately 28.8%[28]. - The electric utility segment incurred an operating loss of $(104,564) thousand for the three months ended September 30, 2024, compared to an operating income of $71,358 thousand in the prior year[28]. Wildfire-Related Expenses - Incremental after-tax Maui wildfire-related expenses totaled $126.3 million, impacting Hawaiian Electric's core net income[13]. - The company recorded a provision for wildfire tort-related claims of $163 million in the third quarter of 2024[28]. - The company incurred $236,396 in pretax expenses related to the Maui wildfires, with a significant portion attributed to wildfire tort-related claims[35]. - After-tax adjustments related to wildfire expenses amounted to $156,557, compared to $20,390 in the previous year[35]. - Wildfire tort-related claims expenses reached $150,727 thousand for Q3 2024, significantly higher than $55,688 thousand in Q3 2023[37]. - The company incurred after-tax expenses of $175,514 thousand related to the Maui wildfire for the three months ended September 30, 2024[37]. - The total after-tax expenses related to Maui windstorm and wildfires for the nine months ended September 30, 2024, were $1,404,495 thousand[40]. Asset and Equity - HEI's asset impairment for Pacific Current was $35.2 million, contributing to a net loss of $40.6 million in holding and other companies for Q3 2024[18]. - The return on average common equity for the twelve months ended September 30, 2024, was not meaningful (NM), compared to 9.5% in the prior year[28]. - The efficiency ratio based on GAAP for 2024 was 70.30%, an improvement from 72.30% in 2023[43]. Banking Operations - Total loans at American Savings Bank were $6.1 billion as of September 30, 2024, down 2.3% from December 31, 2023[16]. - The bank's net interest margin expanded to 2.82%, an increase of 3 basis points compared to Q2 2024[1]. - Total interest and dividend income for the three months ended June 30, 2024, was $87,655, an increase from $86,178 in the previous quarter[32]. - Net interest income after provision for credit losses was $61,986, compared to $63,594 in the previous quarter[32]. - Noninterest income totaled $17,489 for the three months ended June 30, 2024, up from $15,765 in the previous quarter[32]. - Total noninterest expense decreased to $56,046 from $136,465 in the previous quarter, primarily due to a significant goodwill impairment in the prior period[32]. - Net income for the three months ended June 30, 2024, was $18,778, a recovery from a loss of $45,787 in the previous quarter[32]. - Return on average assets improved to 0.81% from (1.97%) in the previous quarter[32]. - Return on average equity increased to 14.28% from (33.97%) in the previous quarter[32]. Management Outlook - HEI's management expressed confidence that the recent settlement agreements represent the best outcome for the company and the community[4].

Financial Data and Key Metrics Changes - For Q2 2024, the company recorded a consolidated net loss of $1.3 billion or $11.74 per share, primarily due to significant one-time losses related to wildfire liabilities and goodwill impairment [15][16] - The utility reported a net loss of $1.23 billion for the quarter, which included a $1.71 billion loss due to the accrual of estimated wildfire liabilities [15][16] - Excluding one-time losses, consolidated core net income was $49.1 million, down from $54.6 million in Q2 2023 [16][17] Business Line Data and Key Metrics Changes - Utility core net income decreased to $43.9 million from $45.3 million year-over-year, driven by higher operational and wildfire mitigation expenses [17] - American Savings Bank (ASB) core net income increased slightly to $20.7 million from $20.2 million, attributed to prudent expense management and higher non-interest income [17] Market Data and Key Metrics Changes - The utility's capital budget for wildfire mitigation efforts is nearly $120 million, representing over 35% of the total budget [10] - The utility has launched a Public Safety Power Shutoff program to enhance safety during high-risk conditions [9] Company Strategy and Development Direction - The company is focused on investing in a sustainable and resilient future for Hawaii, including enhancing wildfire safety strategies and strengthening infrastructure [9][11] - A comprehensive review of strategic options for ASB is ongoing, with no set timetable for potential actions [13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the proposed settlement related to the Maui wildfires, which aims to provide a clearer path forward for the company [6][21] - The company does not intend to raise rates to cover settlement costs and believes it can meet future needs without impacting customers [35] Other Important Information - The proposed settlement includes a total payment of over $4 billion to settle wildfire-related claims, with HEI's contribution being $1.99 billion pretax [6][15] - A hearing is scheduled for August 13 to address the claims of insurance companies related to the settlement [7][27] Q&A Session Summary Question: Confidence in finalizing the settlement - Management highlighted the importance of the settlement terms and the 90-day period for discussions between plaintiffs and insurers to resolve claims [20][21] Question: Capital spending and financing options - The company is working on long-term capital plans and aims for investment-grade credit metrics to lower customer bills [22][23] Question: Court's role in insurer claims - Management explained the ongoing court proceedings and the potential outcomes regarding insurer claims against individual plaintiffs [26][27] Question: Settlement size and insurer involvement - Management expressed cautious optimism about the settlement terms and the potential for resolution between plaintiffs and insurers [30][31]

Core Viewpoint - Hawaiian Electric's stock is experiencing a significant increase due to reports that Maui County is preparing to offer settlements to those affected by the 2023 Maui fires [1][3]. Group 1: Settlement Details - Maui County is considering settlements for thousands affected by the fires, coinciding with lawsuits against the county progressing in court [3]. - Specific details regarding the settlements, such as the timeline for payments and the amounts involved, remain undisclosed, raising concerns about whether the settlements will be sufficient to prevent further lawsuits [3][4]. Group 2: Impact on Hawaiian Electric - Settlements could potentially shield Hawaiian Electric from prolonged and expensive legal battles, which is generating investor optimism and could mark a turning point in the company's recent challenges [5]. - As a result of this news, Hawaiian Electric's stock has risen by 14.7% with over 10 million shares traded, significantly surpassing its average daily trading volume of approximately 2.9 million shares [7].

You can divide these utilities to sell into three categories. First, there are utility stocks with larger issues, which counter the possible AI-related tailwind. Second, some utilities do not benefit from this growth trend. Here's an example of each one, with three utility stocks to sell. Source: snvv18870020330 / Shutterstock.com Over the past year, HE stock has fallen in price by over 70%. On a screener, shares may look like a steal, with a forward price-to-earnings (P/E) ratio of just 5.8. However, there ...

HEI Exhibit 99 NEWS RELEASE May 10, 2024 Contact: Mateo Garcia Telephone: (808) 543-7300 Director, Investor Relations E-mail: ir@hei.com HEI REPORTS FIRST QUARTER 2024 RESULTS 1Q24 Net Income of $42.1 million and Diluted Earnings Per Share (EPS) of $0.38 HONOLULU - Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported consolidated net income for common stock for the first quarter of 2024 of $42.1 million and EPS of $0.38 compared to $54.7 million and EPS of $0.50 for the first quarter of 2023. ...

Financial Performance - HEI's revenues for Q1 2024 were $897.158 million, a decrease of 3% compared to $928.237 million in Q1 2023, primarily due to declines in the electric utility and other segments, partially offset by an increase in the bank segment [251]. - Operating income for Q1 2024 was $76.419 million, down 18% from $93.518 million in Q1 2023, driven by lower performance in the electric utility segment and higher operating losses in the other segment [251]. - Net income for common stock in Q1 2024 was $42.122 million, a 23% decrease from $54.721 million in Q1 2023, attributed to lower net income in the electric utility segment and higher losses in the other segment [251]. - Revenues for the three months ended March 31, 2024, were $789 million, a decrease of $41 million (approximately 4.9%) compared to $830 million in the same period of 2023 [304]. - Net income for common stock decreased to $39 million, down $8 million (approximately 17.0%) from $47 million in the prior year [304]. Expenses and Losses - The Company incurred approximately $169 million in expenses related to the Maui windstorm and wildfires from August 8, 2023, to March 31, 2024, with $58 million and $135 million of insurance coverage remaining under excess liability and directors and officers liability policies, respectively [255]. - Operating and maintenance expenses increased by approximately $16 million, or 12%, in Q1 2024 compared to the same period in 2023 [292]. - ASB incurred additional expenses of $1.8 million related to the Maui wildfires, primarily for professional services [390]. - Total expenses increased by $10 million to $80 million for the three months ended March 31, 2024, primarily due to higher interest and noninterest expenses [398]. Sales and Revenue Segments - kWh sales for the Utility in Q1 2024 decreased by 1.5% compared to Q1 2023, primarily due to the impact of the Maui windstorm and wildfires and ongoing energy efficiency measures [244]. - The "Other" segment reported revenues of $3,436,000 in Q1 2024, down from $4,019,000 in Q1 2023, with an operating loss of $12,468,000 compared to $5,877,000 in the prior year [266]. - kWh sales volume decreased by 1.5% in Q1 2024 compared to Q1 2023, with Maui consumption down 6.3% [293]. Economic Indicators - The inflation rate as of March 31, 2024, was 3.5%, with ongoing inflationary pressures expected to affect operational and capital project costs [247]. - Hawaii's unemployment rate in March 2024 was 3.1%, up from 2.9% in March 2023, while the national rate was 3.8% [259]. - The consumer price index in Hawaii increased by 4.8% over the last 12 months as of March 2024 [295]. Banking and Financial Metrics - The net interest margin for the Bank in Q1 2024 was 2.75%, an increase from 2.63% in the previous quarter but lower than 2.85% in Q1 2023, influenced by higher interest rates and funding costs [245]. - ASB's average core deposits decreased by approximately 1.8% from year-end 2023, leading to increased overall funding costs, with expectations of a flat to declining deposit base due to the higher interest rate environment [246]. - ASB's loan portfolio decreased by $65 million compared to the end of 2023, primarily due to payoffs and reduced demand for home equity lines of credit and consumer loan products [393]. - ASB's deposits decreased by $141 million in 2024, with a weighted average cost of interest-bearing deposits rising to 1.27% from 0.51% in 2023 [405]. Capital Structure and Cash Flow - As of March 31, 2024, HEI's cash and cash equivalents were $127 million, down from $137 million at the end of 2023 [274]. - HEI's consolidated capital structure as of March 31, 2024, included long-term debt of $2,838 million (54%), common stock equity of $2,377 million (45%), and total capital of $5,249 million [281]. - Net cash provided by operating activities for the first three months of 2024 was $125 million, primarily driven by $127 million from Utilities customer cash receipts [283]. - Net cash used in financing activities during the same period was $311 million, mainly due to net decreases in ASB's other bank borrowings and deposit liabilities [283]. Renewable Energy and Environmental Goals - The Utilities aim to achieve net zero carbon emissions from power generation by 2045 or sooner, with significant progress already made towards this goal [314]. - The Utilities have committed to a 70% reduction in carbon emissions from power generation by 2030, although this target may be delayed due to various challenges [313]. - The Utilities achieved a renewable portfolio standard (RPS) of 33.3% in 2023, earning a reward of $444,116 for exceeding the 33.0% target [319]. - The Integrated Grid Plan, accepted by the PUC on March 7, 2024, outlines actionable steps to achieve a decarbonized electric grid in Hawaii, forecasting future energy needs with 100% renewable resources [324]. Infrastructure and Development - Hamakua Energy plans to install a new combustion turbine in May 2024 at a total capital cost of approximately $8.3 million [267]. - The rebuilding of Lahaina's electric utility infrastructure is expected to incur significant costs, with new strategies to mitigate wildfire risks being considered [373]. - The Utilities received notification of a $95 million federal funding application under the Infrastructure Investment and Jobs Act, selected for negotiations [300]. Credit and Loan Performance - The allowance for credit losses at the end of Q1 2024 was $71.057 million, down from $74.372 million at the beginning of the period [412]. - ASB recorded a negative provision for credit losses of $1.2 million for the first three months of 2024, primarily due to the release of $1.5 million of credit loss reserves [411]. - The ratio of net charge-offs during the period to average loans outstanding was 0.14% for Q1 2024, consistent with the previous quarter [412].

Hawaiian Electric (NYSE:HE) power outages are affecting a massive number of the power company’s customers on the island of O’ahu.Almost 13,000 customers were affected by these Hawaiian Electric power outages. The company has since restored service to many of them. However, there are still about 1,800 customers that don’t have power back yet.Hawaiian Electric is working on restoring power to those customers. The company is using a helicopter to scout the island and come up with a plan of repair. It expects t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Exact Name of Registrant Commission I.R.S. Employer as Specified in Its Charter File Number Identification No. Hawaiian Electric Industries, Inc. 1-8503 99-0208097 Hawaiian Electric Company, Inc. 1-4955 9 ...

Unemployment Rate & Visitor Arrivals (In millions) Visitor Arrivals Unemployment Rate $25,000 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------|----------------------------------------------|-------------------|------------|-----------------|---------|--------|--------------------------|-----------------|-------| | | | | | | | | | | | | (In thousands ) 12,000 | Full year 2023: 9.6M | Dec. 2023: 2.9% | % 14 | | | | | $19,699 $20,777 | | | 10,000 | | | 12 | $20,000 | $17 ...