-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FEPFaKH7Xm368Za7QZM/zEl/NiYPUkxH2crOtjRH7jew/fQ/sHlz5ypz52yBzjaU M9XUhyoHIAqD96pIOWTIbA== 0001104659-10-054776.txt : 20101101 0001104659-10-054776.hdr.sgml : 20101101 20101101060258 ACCESSION NUMBER: 0001104659-10-054776 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20101030 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20101101 DATE AS OF CHANGE: 20101101 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HAWAIIAN ELECTRIC CO INC CENTRAL INDEX KEY: 0000046207 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 990040500 STATE OF INCORPORATION: HI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04955 FILM NUMBER: 101153368 BUSINESS ADDRESS: STREET 1: 900 RICHARDS ST CITY: HONOLULU STATE: HI ZIP: 96813 BUSINESS PHONE: 8085437771 MAIL ADDRESS: STREET 1: 900 RICHARDS STREET CITY: HONOLULU STATE: HI ZIP: 96813 FORMER COMPANY: FORMER CONFORMED NAME: HAWAIIAN ELECTRIC CO LTD DATE OF NAME CHANGE: 19670212 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HAWAIIAN ELECTRIC INDUSTRIES INC CENTRAL INDEX KEY: 0000354707 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 990208097 STATE OF INCORPORATION: HI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08503 FILM NUMBER: 101153369 BUSINESS ADDRESS: STREET 1: 900 RICHARDS ST CITY: HONOLULU STATE: HI ZIP: 96813 BUSINESS PHONE: 8085435662 MAIL ADDRESS: STREET 1: 900 RICHARDS STREET CITY: HONOLULU STATE: HI ZIP: 96813 8-K 1 a10-20290_18k.htm 8-K

 

 

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, 2010

 

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

 

99-0040500

 

State of Hawaii

(State or other jurisdiction of incorporation)

 

900 Richards Street, Honolulu, Hawaii  96813

(Address of principal executive offices and zip code)

 

Registrant’s telephone number, including area code:

(808) 543-5662 - Hawaiian Electric Industries, Inc. (HEI)

(808) 543-7771 - Hawaiian Electric Company, Inc. (HECO)

 

None

(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:

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02               Results of Operations and Financial Condition.

 

On October 30, 2010, HEI issued a news release, “HEI Reports Slightly Lower Third Quarter Earnings - Higher Bank Earnings Help Offset Lower Utility Earnings”. This news release is furnished as HEI Exhibit 99.

 

Item 9.01               Financial Statements and Exhibits.

 

(d)  Exhibits

 

HEI Exhibit 99

 

News release, dated October 30, 2010, “HEI Reports Slightly Lower Third Quarter Earnings - Higher Bank Earnings Help Offset Lower Utility Earnings”

 

1



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized. The signature of the undersigned companies shall be deemed to relate only to matters having reference to such companies and any subsidiaries thereof.

 

HAWAIIAN ELECTRIC INDUSTRIES, INC.
(Registrant)

 

HAWAIIAN ELECTRIC COMPANY, INC.
(Registrant)

 

 

 

 

 

 

/s/ James A. Ajello

 

/s/ Tayne S. Y. Sekimura

James A. Ajello

 

Tayne S. Y. Sekimura

Senior Financial Vice President, Treasurer, and

 

Senior Vice President and

Chief Financial Officer

 

Chief Financial Officer

(Principal Financial Officer of HEI)

 

(Principal Financial Officer of HECO)

Date: November 1, 2010

 

Date: November 1, 2010

 

2


 

EX-99 2 a10-20290_1ex99.htm EX-99

HEI Exhibit 99

 

October 30, 2010

 

Contact:

Shelee M.T. Kimura

 

 

Manager, Investor Relations &

(808) 543-7384 Telephone

 

Strategic Planning

E-mail: skimura@hei.com

 

HEI REPORTS SLIGHTLY LOWER THIRD QUARTER EARNINGS – HIGHER BANK EARNINGS HELP OFFSET LOWER UTILITY EARNINGS

 

HONOLULU — Hawaiian Electric Industries, Inc. (NYSE - HE) today reported third quarter 2010 consolidated net income for common stock of $32.4 million, or $0.35 diluted earnings per share (EPS), compared to $33.5 million, or $0.37 diluted EPS for the third quarter of 2009.

 

“Although earnings were down for the quarter due primarily to weather-driven declines in utility sales, we were pleased that we realized significant benefits from our ongoing focus on cost efficiencies at both operating companies and that our bank’s earnings increased over the same quarter last year,” said Constance H. Lau, HEI president and chief executive officer.

 

“At the utility, management action helped to mitigate expected increases in operations and maintenance costs,” said Lau.

 

“At the bank, the hard work of our employees in executing the performance improvement project over the last two years has resulted in meaningful improvements in the bank’s profitability and cost structure. We are pleased to report a strong return on assets of 1.26% and efficiency ratio of 54% for the third quarter,” Lau added.

 

“As we announced earlier this week, Richard Wacker will join our executive leadership team as American Savings Bank’s president and CEO on November 15th,

 



 

2010,” said Lau.  “We are pleased to have found someone of Rich’s caliber and credentials.”  After a 20-year career at General Electric in both their industrial and capital businesses, Wacker most recently led the turnaround of Korea Exchange Bank, Korea’s fifth largest bank which operates in 22 countries and has $90 billion in assets.

 

UTILITY

 

Electric utility net income for common stock for the third quarter of 2010 was $22.0 million compared to $26.5 million in the third quarter of 2009.  The primary drivers for the $4.5 million net income decline were (on an after-tax basis): approximately $4 million from lower kilowatthour sales, $4 million  higher operations and maintenance (O&M) expenses(1) and $3 million higher financing costs and depreciation expense primarily due to generating units put into service in the latter part of 2009.  These were largely offset by rate relief granted in our 2009 Oahu and 2010 Maui rate cases which resulted in a $6 million after-tax increase to net income in the quarter.

 

Kilowatthour sales were down 2.9% in the third quarter 2010 compared with the same quarter last year due to cooler and less humid weather.  On a year-to-date basis, kilowatthour sales were down 0.8% relative to last year and we expect full year 2010 sales to be approximately 1% lower than last year.

 

O&M expenses were up 9%(1) over the same quarter last year.  The increase was driven primarily by higher generation station maintenance, the replacement of critical

 


(1)  Excludes demand-side management (DSM) program costs.  DSM program costs were $2 million in the third quarter of 2009 and $1 million in the third quarter of 2010.  DSM program costs are recovered through a surcharge.  The energy efficiency DSM programs were transferred to a third-party administrator at the end of the second quarter of 2009.

 

2



 

equipment for system reliability and higher employee benefit costs.  We now expect the annual O&M increase to be approximately 13%(1) higher than last year, less than the previously forecast 16%(1) increase.

 

BANK

 

Bank net income for the third quarter of 2010 was $15.3 million, compared to $11.3 million for the same quarter last year and $16.1 million in the second quarter of 2010.

 

The primary drivers for the $4.0 million increase in net income over the same quarter last year were (on an after-tax basis):  (1) $4 million higher noninterest income primarily due to the third quarter 2009 other-than-temporary impairment charge of $6 million on mortgage-related securities, offset by lower fee and other income as a result of regulation on overdraft fees and a 2009 gain on sale of a commercial loan; and (2) $2 million lower noninterest expense primarily due to additional cost savings derived from the substantial completion of the performance improvement project in the second quarter of  2010.   The offsets were (on an after-tax basis) $1 million higher provision for loan losses and $1 million lower net interest income primarily due to lower earning asset balances.

 

Compared to the second quarter of 2010, third quarter 2010 net income was $0.8 million lower as a result of higher provision for loan losses of $3 million (after-tax), largely offset by lower noninterest expense of $2 million (after-tax) primarily due to the FISERV system conversion completed in the second quarter of 2010.

 

3



 

Net interest margin was 4.31% in the third quarter of 2010, up from 4.23% in the third quarter of 2009 and 4.22% in the second quarter of 2010.  In the third quarter, net interest margin benefited from lower funding costs and the recognition of higher deferred loan fees due to a pick-up in prepayments.

 

Provision for loan losses was $6.0 million in the third quarter of 2010 compared with $5.2 million in the third quarter of 2009 and $1.0 million in the second quarter of 2010.  The second quarter 2010 provision would have been $3.4 million if it were not for approximately $2.4 million of loan loss reserves that were released in the second quarter.  The increase in the provision in the third quarter of 2010 was primarily due to the reclassification of specific commercial credits that remain current in their principal and interest payments, but have identified weaknesses.  The third quarter 2010 net charge-off ratio remains low at 0.53%, down from 0.57% in the second quarter 2010.  The bank remains strongly capitalized with a Tier 1 leverage ratio of 9.3% and total risk-based capital ratio of 14.2% as of the end of the third quarter of 2010.

 

Noninterest expense for the third quarter of 2010 was $36.3 million, its lowest level since the start of the performance improvement project and down from $39.6 million in both the third quarter of 2009 and the second quarter of 2010.  The bank’s annualized noninterest expense for the third quarter of 2010 was $145 million, achieving its target of $140 to $145 million one quarter ahead of schedule.

 

4



 

HOLDING AND OTHER COMPANIES

 

The holding and other companies’ net losses were $4.8 million in the third quarter of 2010 compared to $4.4 million in the third quarter of 2009 reflecting higher borrowing costs.

 

WEBCAST AND TELECONFERENCE

 

Hawaiian Electric Industries, Inc. will conduct a webcast and teleconference call to review its third quarter 2010 earnings on Monday, November 1, 2010, at 4:00 a.m. Hawaii time (10:00 a.m. Eastern time).  The event can be accessed through HEI’s website at www.hei.com or by dialing (800) 561-2601, passcode: 90580713 for the teleconference call.  HEI intends to continue to use its website, www.hei.com, as a means of disclosing material and other important information and for complying with its disclosure obligations under SEC Regulation FD.  Such disclosures will be included on HEI’s website under the headings “News & Events” and “Financial Information” 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 ASB’s press releases, SEC filings and public conference calls and webcasts.  Investors should also 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.

 

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 November 15, 2010, by dialing (888) 286-8010, passcode: 44993252.

 

5



 

HEI supplies power to over 400,000 customers or 95% of Hawaii’s population through its electric utilities, Hawaiian Electric Company, Inc., 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 Savings Bank, F.S.B., one of Hawaii’s largest financial institutions.

 

EXPLANATION OF HEI’S USE OF CERTAIN UNAUDITED NON-GAAP FINANCIAL MEASURES

 

HEI and bank management use certain non-GAAP measures in their evaluation of the bank’s performance and believe the presentations of such financial measures on this basis provide useful supplemental information and a clearer picture of the bank’s operating performance, and are better indicators of the bank’s ongoing core operating activities.  Management also uses such measures to assist investors/analysts in better understanding the bank’s progress on the execution of its performance improvement project.  These measures are also useful in understanding performance trends and in facilitating comparisons with the performance of others in the financial services industry.

 

Management utilizes non-GAAP financial measures of noninterest income and expense in the calculation of certain of the bank’s metrics/ratios, such as (i) efficiency, (ii) pretax, preprovision income, and (iii) return on average assets, in order to analyze on a consistent basis and over a longer period of time the performance of the bank’s core operating activities and its progress on the execution of the performance improvement project.  Management also annualizes the non-GAAP measure of noninterest expense by multiplying such measure by 4 to develop an estimate of adjusted noninterest expense for a year-long period.  This annualized adjusted noninterest expense metric (non-GAAP measure) is a

 

6



 

forward-looking statement based on only a quarter’s results and may not reflect actual results.  See schedule on page 18 of this release for a tabular reconciliation between the bank’s GAAP and non-GAAP measures.

 

Certain items shown in the reconciliation—real estate transactions, professional services, FISERV conversion costs, severance, technology write-offs and prepayment penalties on early extinguishment of debt—were incurred pursuant to the bank management’s performance improvement project which was announced in June 2008 and was substantially completed last quarter.  These costs were incurred with the objective of increasing the bank’s operating efficiency and profitability in the long term.  Accordingly, bank management believes that these costs were temporarily elevated while the performance improvement project was being executed.

 

Reported noninterest income is being adjusted by a gain on sale of a commercial loan, gain on sale of other assets and other nonrecurring income items.  Bank management believes that it would not be appropriate to assume that the bank would realize material gains of this type on a quarterly basis.

 

Likewise, bank management also adds back to noninterest income charges related to the other-than-temporary impairment (OTTI) of private-issue mortgage-related securities (PMRS) because of the material nature of the charge, the inconsistency of when those charges occurred and the elimination of the PMRS portfolio in the fourth quarter of 2009.  The bank incurred material OTTI in the third quarter of 2009, impacting the comparability of noninterest income for those quarters.  Management believes that adjusting noninterest income to exclude the effects of OTTI helps the comparability of noninterest income quarter to quarter and quarter over quarter.

 

7



 

In addition, management adjusts noninterest income for net gains (losses) on sales of certain securities including the fourth quarter 2009 loss on the liquidation of the PMRS portfolio because management believes that such transactions are unlikely to recur on a regular basis and impacts the comparability of noninterest income between periods.

 

Limitations associated with utilizing non-GAAP measures are the risks of disagreement over the appropriateness of adjustments comprising these measures and the risk that other companies might calculate these measures differently.  Management addresses these limitations by providing detailed reconciliations between GAAP information and non-GAAP measures.  See reconciliation on page 18.

 

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 (including future revenues, expenses, earnings or losses or growth rates), ongoing business strategies or prospects and possible future actions, which may be provided by management, 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 assumptions about 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.

 

8



 

Forward-looking statements in this release should be read in conjunction with the “Forward-Looking Statements” discussion (which is incorporated by reference herein) set forth on pages iv and v of HEI’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, and in 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 this release.

 

###

 

9



 

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

Three months
ended September 30,

 

Nine months
ended September 30,

 

Twelve months
ended September 30,

 

(in thousands, except per share amounts)

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

623,126

 

$

548,440

 

$

1,755,332

 

$

1,460,654

 

$

2,329,687

 

$

2,181,206

 

Bank

 

71,429

 

71,947

 

213,975

 

229,478

 

259,216

 

308,562

 

Other

 

(14

)

(74

)

(62

)

(121

)

(79

)

60

 

 

 

694,541

 

620,313

 

1,969,245

 

1,690,011

 

2,588,824

 

2,489,828

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric utility

 

571,783

 

494,268

 

1,619,945

 

1,343,250

 

2,142,033

 

2,030,669

 

Bank

 

47,040

 

54,258

 

142,040

 

189,162

 

195,833

 

258,357

 

Other

 

3,087

 

3,148

 

10,291

 

9,247

 

14,677

 

14,770

 

 

 

621,910

 

551,674

 

1,772,276

 

1,541,659

 

2,352,543

 

2,303,796

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric utility

 

51,343

 

54,172

 

135,387

 

117,404

 

187,654

 

150,537

 

Bank

 

24,389

 

17,689

 

71,935

 

40,316

 

63,383

 

50,205

 

Other

 

(3,101

)

(3,222

)

(10,353

)

(9,368

)

(14,756

)

(14,710

)

 

 

72,631

 

68,639

 

196,969

 

148,352

 

236,281

 

186,032

 

Interest expense—other than on deposit liabilities and other bank borrowings

 

(21,015

)

(19,678

)

(61,916

)

(55,421

)

(82,825

)

(74,783

)

Allowance for borrowed funds used during construction

 

492

 

1,118

 

2,061

 

4,467

 

2,862

 

5,644

 

Allowance for equity funds used during construction

 

1,197

 

2,628

 

4,817

 

10,353

 

6,686

 

13,311

 

Income before income taxes

 

53,305

 

52,707

 

141,931

 

107,751

 

163,004

 

130,204

 

Income taxes

 

20,385

 

18,753

 

51,677

 

36,977

 

58,623

 

45,063

 

Net income

 

32,920

 

33,954

 

90,254

 

70,774

 

104,381

 

85,141

 

Preferred stock dividends of subsidiaries

 

471

 

471

 

1,417

 

1,417

 

1,890

 

1,890

 

Net income for common stock

 

$

32,449

 

$

33,483

 

$

88,837

 

$

69,357

 

$

102,491

 

$

83,251

 

Basic earnings per common share

 

$

0.35

 

$

0.37

 

$

0.95

 

$

0.76

 

$

1.10

 

$

0.93

 

Diluted earnings per common share

 

$

0.35

 

$

0.37

 

$

0.95

 

$

0.76

 

$

1.10

 

$

0.92

 

Dividends per common share

 

$

0.31

 

$

0.31

 

$

0.93

 

$

0.93

 

$

1.24

 

$

1.24

 

Weighted-average number of common shares outstanding

 

93,699

 

91,522

 

93,148

 

91,173

 

92,873

 

89,959

 

Adjusted weighted-average shares

 

93,891

 

91,653

 

93,405

 

91,278

 

93,229

 

90,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

21,980

 

$

26,514

 

$

57,674

 

$

56,141

 

$

80,979

 

$

70,167

 

Bank

 

15,293

 

11,323

 

45,160

 

26,226

 

40,701

 

32,165

 

Other

 

(4,824

)

(4,354

)

(13,997

)

(13,010

)

(19,189

)

(19,081

)

Net income for common stock

 

$

32,449

 

$

33,483

 

$

88,837

 

$

69,357

 

$

102,491

 

$

83,251

 

 

This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2009 and the consolidated financial statements and the notes thereto in HEI’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2010,  June 30, 2010 and September 30, 2010 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

10



 

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

September 30,

 

December 31,

 

(dollars in thousands)

 

2010

 

2009

 

Assets

 

 

 

 

 

Cash and cash equivalents

 

$

387,488

 

$

503,922

 

Accounts receivable and unbilled revenues, net

 

259,132

 

241,116

 

Available-for-sale investment and mortgage-related securities

 

570,262

 

432,881

 

Investment in stock of Federal Home Loan Bank of Seattle

 

97,764

 

97,764

 

Loans receivable, net

 

3,466,550

 

3,670,493

 

Property, plant and equipment, net of accumulated depreciation of $2,011,138 and $1,945,482

 

3,131,198

 

3,088,611

 

Regulatory assets

 

422,177

 

426,862

 

Other

 

478,406

 

381,163

 

Goodwill, net

 

82,190

 

82,190

 

Total assets

 

$

8,895,167

 

$

8,925,002

 

Liabilities and stockholders’ equity

 

 

 

 

 

Liabilities

 

 

 

 

 

Accounts payable

 

$

142,971

 

$

159,044

 

Interest and dividends payable

 

31,318

 

27,950

 

Deposit liabilities

 

3,958,636

 

4,058,760

 

Short-term borrowings—other than bank

 

27,296

 

41,989

 

Other bank borrowings

 

246,571

 

297,628

 

Long-term debt, net—other than bank

 

1,364,911

 

1,364,815

 

Deferred income taxes

 

253,284

 

188,875

 

Regulatory liabilities

 

289,568

 

288,214

 

Contributions in aid of construction

 

331,405

 

321,544

 

Other

 

735,261

 

700,242

 

Total liabilities

 

7,381,221

 

7,449,061

 

 

 

 

 

 

 

Preferred stock of subsidiaries - not subject to mandatory redemption

 

34,293

 

34,293

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 94,121,108 shares and 92,520,638 shares

 

1,301,710

 

1,265,157

 

Retained earnings

 

186,425

 

184,213

 

Accumulated other comprehensive loss, net of tax benefits

 

(8,482

)

(7,722

)

Total stockholders’ equity

 

1,479,653

 

1,441,648

 

Total liabilities and stockholders’ equity

 

$

8,895,167

 

$

8,925,002

 

 

This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2009 and the consolidated financial statements and the notes thereto in HEI’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2010, June 30, 2010 and September 30, 2010 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

11


 


 

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

Nine months ended September 30,

 

2010

 

2009

 

(in thousands)

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Net income

 

$

90,254

 

$

70,774

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

Depreciation of property, plant and equipment

 

117,109

 

113,916

 

Other amortization

 

2,995

 

4,037

 

Provision for loan losses

 

12,310

 

27,000

 

Loans receivable originated and purchased, held for sale

 

(286,950

)

(368,880

)

Proceeds from sale of loans receivable, held for sale

 

306,587

 

400,213

 

Net gain on sale of investment and mortgage-related securities

 

 

(44

)

Other-than-temporary impairment of available-for-sale mortgage-related securities

 

 

15,444

 

Changes in deferred income taxes

 

75,821

 

2,958

 

Changes in excess tax benefits from share-based payment arrangements

 

56

 

324

 

Allowance for equity funds used during construction

 

(4,817

)

(10,353

)

Increase in cash overdraft

 

884

 

 

Changes in assets and liabilities

 

 

 

 

 

Decrease (increase) in accounts receivable and unbilled revenues, net

 

(18,016

)

48,480

 

Decrease (increase) in fuel oil stock

 

(42,569

)

9,826

 

Decrease in accounts, interest and dividends payable

 

(12,705

)

(641

)

Changes in prepaid and accrued income taxes and utility revenue taxes

 

(45,787

)

(50,514

)

Changes in other assets and liabilities

 

(5,585

)

(35,561

)

Net cash provided by operating activities

 

189,587

 

226,979

 

Cash flows from investing activities

 

 

 

 

 

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

 

(485,495

)

(247,425

)

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

 

350,673

 

304,728

 

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

 

 

44

 

Net decrease in loans held for investment

 

171,242

 

396,706

 

Proceeds from sale of real estate acquired in settlement of loans

 

3,405

 

0

 

Capital expenditures

 

(137,628

)

(239,441

)

Contributions in aid of construction

 

16,775

 

7,472

 

Other

 

1,615

 

426

 

Net cash provided by (used in) investing activities

 

(79,413

)

222,510

 

Cash flows from financing activities

 

 

 

 

 

Net decrease in deposit liabilities

 

(100,124

)

(132,234

)

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

 

(14,693

)

 

Net decrease in retail repurchase agreements

 

(51,057

)

(18,573

)

Proceeds from other bank borrowings

 

 

310,000

 

Repayments of other bank borrowings

 

 

(604,517

)

Proceeds from issuance of long-term debt

 

 

153,186

 

Changes in excess tax benefits from share-based payment arrangements

 

(56

)

(324

)

Net proceeds from issuance of common stock

 

16,672

 

11,004

 

Common stock dividends

 

(69,585

)

(73,931

)

Preferred stock dividends of subsidiaries

 

(1,417

)

(1,417

)

Decrease in cash overdraft

 

 

(9,847

)

Other

 

(6,348

)

(7,232

)

Net cash used in financing activities

 

(226,608

)

(373,885

)

Net increase (decrease) in cash and cash equivalents

 

(116,434

)

75,604

 

Cash and cash equivalents, beginning of period

 

503,922

 

183,435

 

Cash and cash equivalents, end of period

 

$

387,488

 

$

259,039

 

 

This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2009 and the consolidated financial statements and the notes thereto in HEI’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2010, June 30, 2010 and September 30, 2010 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

12



 

Hawaiian Electric Company, Inc. (HECO) and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

(dollars in thousands, except per barrel amounts)

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

622,223

 

$

546,502

 

$

1,751,029

 

$

1,453,623

 

Operating expenses

 

 

 

 

 

 

 

 

 

Fuel oil

 

235,534

 

186,719

 

662,608

 

463,893

 

Purchased power

 

147,880

 

134,447

 

404,175

 

364,120

 

Other operation

 

62,665

 

61,173

 

182,163

 

186,751

 

Maintenance

 

30,618

 

25,968

 

89,894

 

81,562

 

Depreciation

 

36,277

 

35,557

 

113,568

 

108,406

 

Taxes, other than income taxes

 

58,317

 

50,031

 

164,278

 

137,741

 

Income taxes

 

14,818

 

15,957

 

36,972

 

33,228

 

 

 

586,109

 

509,852

 

1,653,658

 

1,375,701

 

Operating income

 

36,114

 

36,650

 

97,371

 

77,922

 

Other income

 

 

 

 

 

 

 

 

 

Allowance for equity funds used during construction

 

1,197

 

2,628

 

4,817

 

10,353

 

Other, net

 

510

 

1,657

 

2,123

 

6,493

 

 

 

1,707

 

4,285

 

6,940

 

16,846

 

Interest and other charges

 

 

 

 

 

 

 

 

 

Interest on long-term debt

 

14,383

 

13,601

 

43,149

 

37,458

 

Amortization of net bond premium and expense

 

799

 

735

 

2,192

 

2,092

 

Other interest charges

 

653

 

705

 

1,861

 

2,048

 

Allowance for borrowed funds used during construction

 

(492

)

(1,118

)

(2,061

)

(4,467

)

 

 

15,343

 

13,923

 

45,141

 

37,131

 

Net income

 

22,478

 

27,012

 

59,170

 

57,637

 

Preferred stock dividends of subsidiaries

 

228

 

228

 

686

 

686

 

Net income attributable to HECO

 

22,250

 

26,784

 

58,484

 

56,951

 

Preferred stock dividends of HECO

 

270

 

270

 

810

 

810

 

Net income for common stock

 

$

21,980

 

$

26,514

 

$

57,674

 

$

56,141

 

OTHER ELECTRIC UTILITY INFORMATION

 

 

 

 

 

 

 

 

 

Kilowatthour sales (millions)

 

2,497

 

2,572

 

7,144

 

7,203

 

Wet-bulb temperature (Oahu average; degrees Fahrenheit)

 

69.8

 

71.5

 

67.8

 

68.5

 

Cooling degree days (Oahu)

 

1,428

 

1,588

 

3,495

 

3,591

 

Average fuel oil cost per barrel

 

$

89.97

 

$

66.40

 

$

86.12

 

$

59.21

 

Customer accounts (end of period)

 

444,190

 

441,886

 

 

 

 

 

 

 

 

Twelve months ended

 

 

 

 

 

Return on average common equity

 

September 30, 2010

 

 

 

 

 

(rate-making, simple average method)

 

Allowed %(1)

 

Actual %

 

 

 

 

 

HECO

 

10.50

 

7.32

 

 

 

 

 

HELCO

 

10.70

 

7.25

 

 

 

 

 

MECO

 

10.50

 

4.10

 

 

 

 

 

 


(1) Based on interim decisions in effect on September 30, 2010 which are subject to final PUC decisions. Allowed ROACEs for HECO, HELCO and MECO based on their last final rate case decisions were each 10.70%.

 

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, 2009 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, 2010, June 30, 2010 and September 30, 2010 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

13



 

Hawaiian Electric Company, Inc. (HECO) and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

September 30,

 

December 31,

 

(dollars in thousands, except par value)

 

2010

 

2009

 

Assets

 

 

 

 

 

Utility plant, at cost

 

 

 

 

 

Land

 

$

51,371

 

$

52,530

 

Plant and equipment

 

4,832,409

 

4,696,257

 

Less accumulated depreciation

 

(1,915,263

)

(1,848,416

)

Construction in progress

 

105,492

 

132,980

 

Net utility plant

 

3,074,009

 

3,033,351

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

35,044

 

73,578

 

Customer accounts receivable, net

 

141,678

 

133,286

 

Accrued unbilled revenues, net

 

95,866

 

84,276

 

Other accounts receivable, net

 

6,841

 

8,449

 

Fuel oil stock, at average cost

 

121,230

 

78,661

 

Materials and supplies, at average cost

 

36,293

 

35,908

 

Prepayments and other

 

82,089

 

16,201

 

Total current assets

 

519,041

 

430,359

 

Other long-term assets

 

 

 

 

 

Regulatory assets

 

422,177

 

426,862

 

Unamortized debt expense

 

14,435

 

14,288

 

Other

 

59,666

 

73,532

 

Total other long-term assets

 

496,278

 

514,682

 

 

 

$

4,089,328

 

$

3,978,392

 

Capitalization and liabilities

 

 

 

 

 

Capitalization

 

 

 

 

 

Common stock, $6 2/3 par value, authorized 50,000,000 shares; outstanding 13,786,959 shares

 

$

91,931

 

$

91,931

 

Premium on capital stock

 

385,650

 

385,659

 

Retained earnings

 

846,350

 

827,036

 

Accumulated other comprehensive income, net of income taxes

 

1,961

 

1,782

 

Common stock equity

 

1,325,892

 

1,306,408

 

Cumulative preferred stock — not subject to mandatory redemption

 

34,293

 

34,293

 

Long-term debt, net

 

1,057,911

 

1,057,815

 

Total capitalization

 

2,418,096

 

2,398,516

 

Current liabilities

 

 

 

 

 

Accounts payable

 

116,710

 

132,711

 

Interest and preferred dividends payable

 

22,461

 

21,223

 

Taxes accrued

 

150,352

 

156,092

 

Other

 

52,099

 

48,192

 

Total current liabilities

 

341,622

 

358,218

 

Deferred credits and other liabilities

 

 

 

 

 

Deferred income taxes

 

244,455

 

180,603

 

Regulatory liabilities

 

289,568

 

288,214

 

Unamortized tax credits

 

58,083

 

56,870

 

Retirement benefits liability

 

293,069

 

296,623

 

Other

 

113,030

 

77,804

 

Total deferred credits and other liabilities

 

998,205

 

900,114

 

Contributions in aid of construction

 

331,405

 

321,544

 

 

 

$

4,089,328

 

$

3,978,392

 

 

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, 2009 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, 2010, June 30, 2010 and September 30, 2010  (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

14



 

Hawaiian Electric Company, Inc. (HECO) and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

Nine months ended September 30,

 

2010

 

2009

 

(in thousands)

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Net income

 

$

59,170

 

$

57,637

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

 

 

 

 

 

 

Depreciation of property, plant and equipment

 

113,568

 

108,406

 

Other amortization

 

5,360

 

7,702

 

Changes in deferred income taxes

 

74,720

 

12,532

 

Changes in tax credits, net

 

1,939

 

(501

)

Allowance for equity funds used during construction

 

(4,817

)

(10,353

)

Increase in cash overdraft

 

884

 

 

Changes in assets and liabilities

 

 

 

 

 

Decrease (increase) in accounts receivable

 

(6,784

)

32,423

 

Decrease (increase) in accrued unbilled revenues

 

(11,590

)

14,183

 

Decrease (increase) in fuel oil stock

 

(42,569

)

9,826

 

Increase in materials and supplies

 

(385

)

(1,825

)

Increase in regulatory assets

 

(3,269

)

(13,829

)

Decrease in accounts payable

 

(16,001

)

(4,952

)

Changes in prepaid and accrued income taxes and utility revenue taxes

 

(55,202

)

(62,388

)

Changes in other assets and liabilities

 

1,415

 

3,360

 

Net cash provided by operating activities

 

116,439

 

152,221

 

Cash flows from investing activities

 

 

 

 

 

Capital expenditures

 

(131,140

)

(237,664

)

Contributions in aid of construction

 

16,775

 

7,472

 

Other

 

657

 

340

 

Net cash used in investing activities

 

(113,708

)

(229,852

)

Cash flows from financing activities

 

 

 

 

 

Common stock dividends

 

(38,360

)

(32,756

)

Preferred stock dividends of HECO and subsidiaries

 

(1,496

)

(1,496

)

Proceeds from issuance of long-term debt

 

 

153,186

 

Net decrease in short-term borrowings from nonaffiliates and affiliate with original maturities of three months or less

 

 

(30,850

)

Decrease in cash overdraft

 

 

(9,847

)

Other

 

(1,409

)

(1,021

)

Net cash provided by (used in) financing activities

 

(41,265

)

77,216

 

Net decrease in cash and cash equivalents

 

(38,534

)

(415

)

Cash and cash equivalents, beginning of period

 

73,578

 

6,901

 

Cash and cash equivalents, end of period

 

$

35,044

 

$

6,486

 

 


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, 2009 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, 2010, June 30, 2010 and September 30, 2010 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

15



 

American Savings Bank, F.S.B. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME DATA

(Unaudited)

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

(in thousands)

 

2010

 

2010

 

2009

 

2010

 

2009

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

49,221

 

$

49,328

 

$

53,080

 

$

148,294

 

$

166,535

 

Interest and dividends on investment and mortgage-related securities

 

3,852

 

3,646

 

6,943

 

10,815

 

21,762

 

 

 

53,073

 

52,974

 

60,023

 

159,109

 

188,297

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

Interest on deposit liabilities

 

3,390

 

3,852

 

7,286

 

11,665

 

28,753

 

Interest on other borrowings

 

1,414

 

1,418

 

2,205

 

4,258

 

7,710

 

 

 

4,804

 

5,270

 

9,491

 

15,923

 

36,463

 

Net interest income

 

48,269

 

47,704

 

50,532

 

143,186

 

151,834

 

Provision for loan losses

 

5,961

 

990

 

5,200

 

12,310

 

27,000

 

Net interest income after provision for loan losses

 

42,308

 

46,714

 

45,332

 

130,876

 

124,834

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

Fee income on deposit liabilities

 

6,109

 

7,891

 

8,211

 

21,520

 

22,384

 

Fees from other financial services

 

6,781

 

6,649

 

6,385

 

19,844

 

18,747

 

Fee income on other financial products

 

1,697

 

1,735

 

1,613

 

4,957

 

4,285

 

Net losses on available-for-sale securities

 

 

 

(9,863

)

 

(15,400

)

Other income

 

3,769

 

2,383

 

5,578

 

8,545

 

11,165

 

 

 

18,356

 

18,658

 

11,924

 

54,866

 

41,181

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

18,168

 

18,907

 

17,721

 

54,477

 

55,072

 

Occupancy

 

4,176

 

4,216

 

4,905

 

12,617

 

15,956

 

Data processing

 

2,019

 

4,564

 

3,684

 

10,921

 

10,352

 

Services

 

1,544

 

1,845

 

2,437

 

5,117

 

9,656

 

Equipment

 

1,600

 

1,640

 

1,782

 

4,949

 

7,112

 

Other expense

 

8,798

 

8,453

 

9,062

 

25,819

 

27,628

 

 

 

36,305

 

39,625

 

39,591

 

113,900

 

125,776

 

Income before income taxes

 

24,359

 

25,747

 

17,665

 

71,842

 

40,239

 

Income taxes

 

9,066

 

9,616

 

6,342

 

26,682

 

14,013

 

Net income

 

$

15,293

 

$

16,131

 

$

11,323

 

$

45,160

 

$

26,226

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER BANK INFORMATION (%)

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.26

 

1.32

 

0.89

 

1.23

 

0.68

 

Return on average equity

 

12.04

 

12.80

 

9.40

 

11.96

 

7.35

 

Net interest margin

 

4.31

 

4.22

 

4.23

 

4.23

 

4.17

 

Net charge-offs to average loans outstanding (annualized)

 

0.53

 

0.57

 

0.19

 

0.58

 

0.56

 

Efficiency ratio

 

54

 

59

 

63

 

57

 

65

 

As of period end

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to loans outstanding and real estate owned *

 

1.87

 

1.90

 

1.61

 

 

 

 

 

Allowance for loan losses to loans outstanding

 

1.09

 

1.03

 

1.21

 

 

 

 

 

Tier-1 leverage ratio

 

9.3

 

9.3

 

9.1

 

 

 

 

 

Total risk-based capital ratio

 

14.2

 

14.1

 

13.2

 

 

 

 

 

Tangible common equity to total assets

 

8.8

 

8.7

 

8.2

 

 

 

 

 

 


*  Regulatory basis

 

This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2009 and the consolidated financial statements and the notes thereto in HEI’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2010, June 30, 2010 and September 30, 2010 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

16



 

American Savings Bank, F.S.B. and Subsidiaries

CONSOLIDATED BALANCE SHEETS DATA

(Unaudited)

 

 

 

September 30,

 

December 31,

 

(in thousands)

 

2010

 

2009

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Cash and cash equivalents

 

$

350,404

 

$

425,896

 

Federal funds sold

 

1,000

 

1,479

 

Available-for-sale investment and mortgage-related securities

 

570,262

 

432,881

 

Investment in stock of Federal Home Loan Bank of Seattle

 

97,764

 

97,764

 

Loans receivable, net

 

3,466,550

 

3,670,493

 

Other

 

235,985

 

230,282

 

Goodwill, net

 

82,190

 

82,190

 

 

 

$

4,804,155

 

$

4,940,985

 

 

 

 

 

 

 

Liabilities and stockholder’s equity

 

 

 

 

 

Deposit liabilities–noninterest-bearing

 

$

830,593

 

$

808,474

 

Deposit liabilities–interest-bearing

 

3,128,043

 

3,250,286

 

Other borrowings

 

246,571

 

297,628

 

Other

 

96,306

 

92,129

 

 

 

4,301,513

 

4,448,517

 

 

 

 

 

 

 

Common stock

 

330,493

 

329,439

 

Retained earnings

 

174,815

 

172,655

 

Accumulated other comprehensive loss, net of tax benefits

 

(2,666

)

(9,626

)

 

 

502,642

 

492,468

 

 

 

$

4,804,155

 

$

4,940,985

 

 

This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2009 and the consolidated financial statements and the notes thereto in HEI’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2010, June 30, 2010 and September 30, 2010 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

 

17



 

American Savings Bank, F.S.B. and Subsidiaries

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(Unaudited)

 

(in thousands)

 

1Q08

 

3Q09

 

4Q09

 

1Q10

 

2Q10

 

3Q10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

Per income statement - GAAP

 

$

17,928

 

$

11,924

 

$

(11,277

)

$

17,852

 

$

18,658

 

$

18,356

 

Other-than-temporary impairment of private-issue mortgage-related securities

 

 

9,863

 

 

 

 

 

Net (gains) losses on sale of securities

 

(935

)

 

32,078

 

 

 

 

Gain on sale of a commercial loan

 

 

(2,951

)

 

 

 

 

Gain on sale of other assets

 

 

 

(1,772

)

 

 

 

Other nonrecurring income

 

(384

)

 

(500

)

 

 

21

 

Adjusted noninterest income

 

$

16,609

 

$

18,836

 

$

18,529

 

$

17,852

 

$

18,658

 

$

18,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Per income statement - GAAP

 

$

44,234

 

$

39,591

 

$

41,695

 

$

37,970

 

$

39,625

 

$

36,305

 

Real estate transactions

 

 

(1,076

)

(1,633

)

 

(30

)

(699

)

Professional services

 

 

(600

)

 

 

 

 

FISERV conversion costs

 

 

(572

)

(972

)

(1,257

)

(2,697

)

(144

)

Severance

 

 

(301

)

(390

)

(1

)

(48

)

(492

)

Technology write-offs

 

 

 

(35

)

 

 

 

Prepayment penalty on early extinguishment of debt

 

 

 

(659

)

 

 

 

Adjusted noninterest expense

 

$

44,234

 

$

37,042

 

$

38,006

 

$

36,712

 

$

36,850

 

$

34,970

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other bank information

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (annualized)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

$

176,936

 

$

158,364

 

$

166,780

 

$

151,880

 

$

158,500

 

$

145,220

 

Adjusted

 

176,936

 

148,168

 

152,024

 

146,848

 

147,400

 

139,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

65

%

63

%

109

%

58

%

59

%

54

%

Adjusted

 

66

%

53

%

56

%

56

%

55

%

52

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax, preprovision income (annualized)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

$

96,964

 

$

91,460

 

$

(14,136

)

$

108,380

 

$

106,948

 

$

121,280

 

Adjusted

 

91,688

 

129,304

 

119,844

 

113,412

 

118,048

 

126,704

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

0.85

%

0.89

%

(0.36

)%

1.12

%

1.32

%

1.26

%

Adjusted

 

0.81

%

1.34

%

1.27

%

1.18

%

1.45

%

1.33

%

 

18


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