HEI(HE) - 2023 Q3 - Earnings Call Presentation

Financial Performance and Core Earnings - HEI reported 3Q23 GAAP diluted EPS of $0.37, while core diluted EPS, which excludes Maui wildfire-related expenses, reached $0.56[40][51][117] - Consolidated GAAP net income for 3Q23 was $41.1 million, compared to a non-GAAP core net income of $61.5 million[40][117] - The utility segment's 3Q23 GAAP net income was $43.5 million, with core net income adjusted to $53.8 million after excluding $10.4 million (after-tax) in windstorm and wildfire-related costs[40][119] - American Savings Bank (ASB) recorded 3Q23 GAAP net income of $11.4 million, with core net income of $17.6 million after excluding $6.3 million (after-tax) in wildfire-related expenses[122] Bank Operations and Asset Quality - ASB maintained a stable net interest margin (NIM) of 2.70% in 3Q23, slightly down from 2.75% in 2Q23, despite industry-wide funding cost pressures[2][102] - The bank's loan portfolio remains conservative, with approximately 84% of loans secured by real estate, including a residential weighted average loan-to-value (LTV) of 52%[18] - Allowance for Credit Losses (ACL) increased to $76.4 million as of September 30, 2023, representing 1.23% of total loans, reflecting loan growth and Maui wildfire-related credit risks[13][103] - ASB maintains a strong capital position with a Tier 1 leverage ratio of 7.69% as of September 30, 2023, well above the 5.00% "well capitalized" regulatory requirement[17] Liquidity and Strategic Resilience - HEI bolstered liquidity following the wildfires by drawing $370 million from revolving credit facilities and suspending the quarterly dividend, which preserves approximately $40 million in cash per quarter[58] - As of the end of 3Q23, the Holding Company and the Utility held $127 million and $275 million in cash on hand, respectively[58]