Form 8-K - Current report

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, 2024


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

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:


Registrant	Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Hawaiian Electric Industries, Inc.	Common Stock, Without Par Value	HE	New 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, 2024, HEI issued a news release, “American Savings Bank Reports Third Quarter 2024 Financial Results.” This news release is furnished as Exhibit 99.

Item 9.01 Financial Statements and Exhibits.


(d) Exhibits
Exhibit 99			News release, dated October 30, 2024, “American Savings Bank Reports Third Quarter 2024 Financial Results”
104			Cover 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, 2024

Exhibit 99


		NEWS RELEASE
October 30, 2024
Contact:	Mateo Garcia	Telephone: (808) 543-7300
	Director, Investor Relations	E-mail: ir@hei.com

AMERICAN SAVINGS BANK REPORTS THIRD QUARTER 2024 FINANCIAL RESULTS

3Q 2024 Net Income of $18.8 million

•Net interest margin expanded to 2.82%, up 3 basis points from the prior quarter

•Continued strong credit quality and capital position

HONOLULU - American Savings Bank, F.S.B. (ASB), a wholly owned subsidiary of Hawaiian Electric Industries, Inc. (NYSE - HE), today reported third quarter 2024 net income of $18.8 million, compared to a net loss of $45.8 million in the second quarter of 2024 and net income of $11.4 million in the third quarter of 2023. Core net income1 for the quarter was $19.4 million, compared to $20.7 million in the second quarter and $17.6 million in the third quarter of last year.

“American Savings Bank continues to perform well, generating strong net income and profitability while continuing the net interest margin expansion we’ve seen throughout 2024. We remain well-positioned to support our customers and community for the long term, with a strong capital and liquidity position, strong credit quality, and ample lending capacity,” said Ann Teranishi, president and chief executive officer of ASB.

Financial Highlights

Third quarter 2024 net interest income was $62.2 million compared to $61.7 million in the linked quarter and $62.6 million in the third quarter of 2023. The increase in net interest income compared to the linked quarter was primarily due to higher interest and dividend income due to higher earning asset yields, partially offset by higher deposit costs. The lower net interest income compared to the prior year quarter was primarily due to higher deposit costs and lower earning asset balances, partially offset by higher interest and fees on loans due to higher earning asset

1 See the “Explanation of ASB’s Use of Certain Unaudited Non-GAAP Measures” and the related GAAP

reconciliation at the end of this release.

yields. Net interest margin for the third quarter of 2024 was 2.82% compared to 2.79% in the linked quarter, and 2.70% in the prior year quarter. The yield on earning assets improved 6 basis points during the quarter, while cost of funding increased 3 basis points.

In the third quarter of 2024, ASB recorded a provision for credit losses of $0.2 million compared to a negative provision for credit losses of $1.9 million in the linked quarter and a provision for credit losses of $8.8 million in the third quarter of 2023. The quarter’s provision for credit losses reflects continued strong credit quality and a healthy Hawaii economy. As of September 30, 2024, ASB’s allowance for credit losses to outstanding loans was 1.07% compared to 1.11% as of June 30, 2024 and 1.23% as of September 30, 2023.

The net charge-off ratio for the third quarter of 2024 was 0.15%, compared to 0.15% in the linked quarter, and 0.07% in the prior year quarter. Nonaccrual loans as a percentage of total loans receivable held for investment were 0.42%, compared to 0.53% in the linked quarter and 0.16% in the prior year quarter.

Noninterest income was $17.5 million in the third quarter of 2024, compared to $15.8 million in the linked quarter and $15.3 million in the third quarter of 2023. The increase compared to the linked and prior year quarters included higher fee income and higher bank-owned life insurance income.

Noninterest expense was $56.0 million compared to $136.5 million in the linked quarter and $56.3 million in the third quarter of 2023. The linked quarter’s noninterest expense reflected a goodwill impairment charge of $82.2 million pre-tax ($66.1 million after tax) taken in connection with HEI’s ongoing review of strategic options for ASB. Noninterest expense in the third quarter included net pre-tax wildfire-related expenses of $1.1 million.

Total loans were $6.1 billion as of September 30, 2024, down 2.3% from December 31, 2023.

Total deposits were $8.0 billion as of September 30, 2024, down 1.8% from December 31, 2023. Core deposits declined 2.1% from December 31, 2023, while certificates of deposit were approximately flat. As of September 30, 2024, 83% of deposits were F.D.I.C. insured or fully collateralized, with approximately 79% of deposits F.D.I.C. insured. For the third quarter of 2024, the average cost of funds was 118 basis points, up from 115 basis points in the linked quarter and 102 basis points in the prior year quarter.

Wholesale funding totaled $520 million as of September 30, 2024, unchanged from June 30, 2024.

In the third quarter of 2024, ASB did not pay a dividend to HEI, supporting ASB’s healthy capital levels. ASB had a Tier 1 leverage ratio of 8.6% as of September 30, 2024.

HEI EARNINGS RELEASE, HEI WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS

Concurrent with ASB’s regulatory filing 30 days after the end of the quarter, ASB announced its third quarter 2024 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 2024.

HEI plans to announce its third quarter 2024 consolidated financial results on Friday, November 8, 2024 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.

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 22, 2024. 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

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, and modernize and harden the grid to ensure resilience and public safety. 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

Measures described as “core” are non-GAAP measures which exclude after-tax Maui wildfire-related costs and the goodwill impairment taken in connection with HEI’s ongoing review of strategic options for ASB. See “Explanation of ASB’s Use of Certain Unaudited Non-GAAP Measures” and the 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 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, 2023 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.

###

American Savings Bank, F.S.B.

STATEMENTS OF INCOME DATA

(Unaudited)


	Three months ended						Nine months ended September 30
(in thousands)	September 30, 2024		June 30, 2024		September 30, 2023		2024		2023
Interest and dividend income
Interest and fees on loans	$	73,654	$	72,960	$	71,540	$	219,585	$	204,348
Interest and dividends on investment securities	14,001		13,218		14,096		42,183		42,508
Total interest and dividend income	87,655		86,178		85,636		261,768		246,856
Interest expense
Interest on deposit liabilities	19,018		18,015		14,446		54,465		30,944
Interest on other borrowings	6,403		6,479		8,598		21,036		25,171
Total interest expense	25,421		24,494		23,044		75,501		56,115
Net interest income	62,234		61,684		62,592		186,267		190,741
Provision for credit losses	248		(1,910)		8,835		(3,821)		10,053
Net interest income after provision for credit losses	61,986		63,594		53,757		190,088		180,688
Noninterest income
Fees from other financial services	5,188		5,133		4,703		15,195		14,391
Fee income on deposit liabilities	5,156		4,630		4,924		14,684		14,027
Fee income on other financial products	3,131		2,960		2,440		8,834		7,952
Bank-owned life insurance	2,993		2,255		2,303		8,832		5,683
Mortgage banking income	363		364		341		1,151		701
Gain on sale of real estate	—		—		—		—		495

Other income, net	658		423		627		1,767		2,106
Total noninterest income	17,489		15,765		15,338		50,463		45,355
Noninterest expense
Compensation and employee benefits	31,485		29,802		29,902		93,746		89,500
Occupancy	5,630		5,220		5,154		15,913		16,281
Data processing	4,974		4,960		5,133		14,780		15,240
Services	3,816		4,250		3,627		12,217		8,911
Equipment	2,436		2,477		3,125		7,562		8,728
Office supplies, printing and postage	1,014		1,006		1,022		3,038		3,296
Marketing	885		747		984		2,408		2,834

Goodwill impairment	—		82,190		—		82,190		—
Other expense	5,806		5,813		7,399		16,561		19,742
Total noninterest expense	56,046		136,465		56,346		248,415		164,532
Income (loss) before income taxes	23,429		(57,106)		12,749		(7,864)		61,511
Income tax expense (benefit)	4,651		(11,319)		1,384		(1,789)		11,380
Net income (loss)	$	18,778	$	(45,787)	$	11,365	$	(6,075)	$	50,131
Comprehensive income (loss)	$	58,982	$	(44,154)	$	(22,866)	$	25,994	$	27,120
OTHER BANK INFORMATION (annualized %, except as of period end)
Return on average assets	0.81		(1.97)		0.47		(0.09)		0.70
Return on average equity	14.28		(33.97)		9.19		(1.52)		13.62
Return on average tangible common equity	14.28		(39.84)		11.02		(1.69)		16.36
Net interest margin	2.82		2.79		2.70		2.78		2.77
Efficiency ratio	70.30		176.20		72.30		104.94		69.69
Net charge-offs to average loans outstanding	0.15		0.15		0.07		0.15		0.11
As of period end
Nonaccrual loans to loans receivable held for investment	0.42		0.53		0.16
Allowance for credit losses to loans outstanding	1.07		1.11		1.23
Tangible common equity to tangible assets	6.0		5.4		3.9
Tier-1 leverage ratio	8.6		8.4		7.7
Dividend paid to HEI (via ASB Hawaii, Inc.) ($ in millions)	$	—	$	—	$	14.0	$	—	$	39.0

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.

American Savings Bank, F.S.B.

BALANCE SHEETS DATA

(Unaudited)


(in thousands)	September 30, 2024				December 31, 2023
Assets
Cash and due from banks			$	155,869			$	184,383
Interest-bearing deposits			176,784				251,072
Cash and cash equivalents			332,653				435,455
Investment securities
Available-for-sale, at fair value			1,084,083				1,136,439
Held-to-maturity, at amortized cost			1,159,229				1,201,314
Stock in Federal Home Loan Bank, at cost			29,204				14,728
Loans held for investment			6,037,410				6,180,810
Allowance for credit losses			(64,796)				(74,372)
Net loans			5,972,614				6,106,438
Loans held for sale, at lower of cost or fair value			2,704				15,168
Other			687,359				681,460
Goodwill			—				82,190
Total assets			$	9,267,846			$	9,673,192
Liabilities and shareholder’s equity
Deposit liabilities–noninterest-bearing			$	2,486,717			$	2,599,762
Deposit liabilities–interest-bearing			5,512,493				5,546,016
Other borrowings			520,000				750,000
Other			191,512				247,563
Total liabilities			8,710,722				9,143,341
Common stock			1				1
Additional paid-in capital			359,346				358,067
Retained earnings			457,980				464,055
Accumulated other comprehensive loss, net of tax benefits
Net unrealized losses on securities	$	(251,703)			$	(282,963)
Retirement benefit plans	(8,500)		(260,203)		(9,309)		(292,272)
Total shareholder’s equity			557,124				529,851
Total liabilities and shareholder’s equity			$	9,267,846			$	9,673,192

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

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 Maui wildfires and the goodwill impairment taken in connection with HEI’s ongoing review of strategic options for ASB. Management does not consider these items to be representative of the company’s fundamental core earnings.

Reconciliation of GAAP to non-GAAP Measures

American Savings Bank F.S.B.

Unaudited


	Three months ended September 30				Nine months ended September 30
(in thousands)	2024		2023		2024		2023
Maui wildfire related costs and goodwill impairment
Pretax expenses:

Provision for credit losses	$	(200)	$	5,900	$	(2,500)	$	5,900
Professional services expense	1,134		1,300		4,043		1,300
Other expenses, net	(42)		1,357		(308)		1,357
Pretax Maui wildfire related costs, net	892		8,557		1,235		8,557
Pretax goodwill impairment	—		—		82,190		—

Income tax benefit	(239)		(2,293)		(16,391)		(2,293)
After-tax expenses	$	653	$	6,264	$	67,034	$	6,264

ASB net income (loss)
GAAP (as reported)	$	18,778	$	11,365	$	(6,075)	$	50,131
Excluding expense relating to Maui wildfire costs and goodwill impairment (after tax):
Provision for credit losses	(146)		4,319		(1,830)		4,319
Professional services expense	830		952		2,960		952
Other expenses, net	(31)		993		(226)		993
Goodwill impairment	—		—		66,130		—

Maui wildfire related cost, net and goodwill impairment (after tax)	653		6,264		67,034		6,264
Non-GAAP (core) net income	$	19,431	$	17,629	$	60,959	$	56,395

1 Accounting principles generally accepted in the United States of America


	Three months ended September 30		Nine months ended September 30
	2024	2023	2024	2023
Ratios (annualized %)

Based on GAAP
Return on average assets	0.81	0.47	(0.09)	0.70
Return on average equity	14.28	9.19	(1.52)	13.62
Return on average tangible common equity	14.28	11.02	(1.69)	16.36
Efficiency ratio	70.30	72.30	104.94	69.69
Based on Non-GAAP (core)
Return on average assets	0.84	0.73	0.87	0.78
Return on average equity	14.78	14.25	15.24	15.32
Return on average tangible common equity	14.78	17.09	16.94	18.40
Efficiency ratio	68.93	68.89	68.64	68.56

Cover	Oct. 30, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 30, 2024
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