Energy Central-News Article


SELECTED FINANCIAL INFORMATION
Hawaiian Electric Industries, Inc. and Subsidiaries
Unaudited

Years ended December 31	2022	2021	2020	2019	2018
(dollars in thousands, except per share amounts)
Results of operations
Revenues	$	3,741,985	$	2,850,379	$	2,579,775	$	2,873,948	$	2,860,849
Net income for common stock	241,138	246,166	197,824	217,882	201,774
Basic earnings per common share	2.20	2.25	1.81	2.00	1.85
Diluted earnings per common share	2.20	2.25	1.81	1.99	1.85
Dividends per common share	1.40	1.36	1.32	1.28	1.24
Operating income (loss)
Electric utility	$	299,191	$	279,558	$	268,550	$	254,378	$	241,661
Bank	101,518	128,203	61,809	110,909	108,235
Other	(19,636)	(21,695)	(18,866)	(17,266)	(16,540)
$	381,073	$	386,066	$	311,493	$	348,021	$	333,356
Assets 1
Electric utility	$	6,597,467	$	6,491,625	$	6,457,373	$	6,388,682	$	5,967,503
Bank	9,545,970	9,181,603	8,396,533	7,233,017	7,027,894
Other	140,807	149,409	150,101	123,552	108,654
$	16,284,244	$	15,822,637	$	15,004,007	$	13,745,251	$	13,104,051
Capital structure 1, 2
Short-term borrowings - other than bank	$	172,568	$	53,998	$	129,379	$	185,710	$	73,992
Long-term debt, net - other than bank	2,384,980	2,321,937	2,119,129	1,964,365	1,879,641
Preferred stock of subsidiaries	34,293	34,293	34,293	34,293	34,293
Common stock equity	2,202,499	2,390,884	2,337,502	2,280,260	2,162,280
$	4,794,340	$	4,801,112	$	4,620,303	$	4,464,628	$	4,150,206
Capital structure ratios 1, 2
Short-term borrowings - other than bank	3.6	%	1.1	%	2.8	%	4.2	%	1.8	%
Long-term debt, net - other than bank	49.8	48.4	45.9	44.0	45.3
Preferred stock of subsidiaries	0.7	0.7	0.7	0.8	0.8
Common stock equity	45.9	49.8	50.6	51.0	52.1
100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Key financial ratios
Market price to book value per common share 1	208	%	190	%	165	%	224	%	184	%
Price earnings ratio 3	19.0x	18.4x	19.6x	23.5x	19.8x
Retuon average common equity	10.5	%	10.4	%	8.6	%	9.8	%	9.5	%
Indicated annual dividend yield1	3.3	%	3.3	%	3.7	%	2.7	%	3.4	%
Dividend payout ratio	64	%	60	%	73	%	64	%	67	%
Full-time employees
HEI (includes Pacific Current)	79	49	49	50	46
Hawaiian Electric and its subsidiaries	2,511	2,469	2,579	2,675	2,704
ASB	1,050	1,079	1,064	1,111	1,148
3,640	3,597	3,692	3,836	3,898

Note:	This report should be read in conjunction with HEI's Form 10-K for each year. Reclassifications of prior year amounts were made to conform to the 2022 presentation.
1 At December 31.
2 Excludes ASB's deposit liabilities and other borrowings.
3 Calculated using December 31 market price per common share divided by diluted earnings per common share.


CONSOLIDATED STATEMENTS OF INCOME INFORMATION
Hawaiian Electric Industries, Inc. and Subsidiaries
Unaudited
Years ended December 31	2022	2021	2020	2019	2018
(in thousands, except per share amounts)
Revenues
Electric utility	$	3,408,587	$	2,539,636	$	2,265,320	$	2,545,942	$	2,546,525
Bank	321,068	306,398	313,511	327,917	314,275
Other	12,330	4,345	944	89	49
Total revenues	3,741,985	2,850,379	2,579,775	2,873,948	2,860,849
Expenses
Electric utility	3,109,396	2,260,078	1,996,770	2,291,564	2,304,864
Bank	219,550	178,195	251,702	217,008	206,040
Other	31,966	26,040	19,810	17,355	16,589
Total expenses	3,360,912	2,464,313	2,268,282	2,525,927	2,527,493
Operating income (loss)
Electric utility	299,191	279,558	268,550	254,378	241,661
Bank	101,518	128,203	61,809	110,909	108,235
Other	(19,636)	(21,695)	(18,866)	(17,266)	(16,540)
Total operating income	381,073	386,066	311,493	348,021	333,356
Retirement defined benefits credit (expense)-other than service costs	4,411	5,848	(3,210)	(2,806)	(5,962)
Interest expense, net-other than on deposit liabilities and other bank borrowings	(103,402)	(94,363)	(88,694)	(90,899)	(88,677)
Allowance for borrowed funds used during construction	3,416	3,250	2,992	4,453	4,867
Allowance for equity funds used during construction	10,574	9,534	8,768	11,987	10,877
Gain on sale of investment securities, net and equity-method investments	8,123	528	9,275	653	-
Income before income taxes	304,195	310,863	240,624	271,409	254,461
Income taxes	61,167	62,807	40,910	51,637	50,797
Net income	243,028	248,056	199,714	219,772	203,664
Preferred stock dividends of subsidiaries	1,890	1,890	1,890	1,890	1,890
Net income for common stock	$	241,138	$	246,166	$	197,824	$	217,882	$	201,774
Basic earnings per common share	$	2.20	$	2.25	$	1.81	$	2.00	$	1.85
Diluted earnings per common share	$	2.20	$	2.25	$	1.81	$	1.99	$	1.85
Weighted-average number of common shares outstanding	109,434	109,282	109,140	108,949	108,855
Weighted-average shares assuming dilution	109,778	109,580	109,356	109,407	109,146

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME INFORMATION
Hawaiian Electric Industries, Inc. and Subsidiaries
Unaudited
Years ended December 31	2022	2021	2020	2019	2018
(in thousands)
Net income for common stock	$	241,138	$	246,166	$	197,824	$	217,882	$	201,774
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on available-for-sale investment securities:
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, net of taxes	(300,860)	(51,636)	19,143	27,382	(9,472)
Reclassification adjustment for net realized gains included in net income, net of taxes	-	(387)	(1,638)	(478)	-
Amortization of unrealized holding losses on held-to-maturity securities	3,993	-	-	-	-
Derivatives qualified as cash flow hedges:
Unrealized interest rate hedging losses, net of tax benefits	5,457	(312)	(1,750)	(1,177)	(436)
Reclassification adjustment to net income, net of taxes	172	37	-	-	-
Retirement benefit plans:
Net gains (losses) arising during the period, net of taxes	188,020	153,121	(60,529)	10,914	(28,101)
Adjustment for amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	19,659	19,253	23,689	10,107	21,015
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(199,936)	(171,345)	39,860	(16,177)	8,325
Other comprehensive income (loss), net of taxes	(283,495)	(51,269)	18,775	30,571	(8,669)
Comprehensive income (loss) attributable to Hawaiian Electric Industries, Inc.	$	(42,357)	$	194,897	$	216,599	$	248,453	$	193,105

Note:	See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year. Reclassifications of prior year amounts were made to conform to the 2022 presentation.


CONSOLIDATED BALANCE SHEETS INFORMATION
Hawaiian Electric Industries, Inc. and Subsidiaries
Unaudited

December 31	2022	2021	2020	2019	2018
(in thousands)
ASSETS
Cash and cash equivalents	$	199,877	$	305,551	$	341,421	$	196,813	$	169,208
Restricted cash	5,050	5,911	17,558	30,872	-
Accounts receivable and unbilled revenues, net	511,903	344,213	281,216	300,794	325,672
Available-for-sale investment securities, at fair value	1,429,667	2,574,618	1,970,417	1,232,826	1,388,533
Held-to-maturity investment securities, at amortized cost	1,251,747	522,270	226,947	139,451	141,875
Stock in Federal Home Loan Bank, at cost	26,560	10,000	8,680	8,434	9,958
Loans, net	5,907,514	5,150,388	5,260,917	5,080,107	4,792,707
Property, plant and equipment, net	5,687,003	5,392,068	5,265,735	5,109,628	4,830,118
Operating lease right-of-use assets 1	115,684	122,416	153,069	199,171	-
Regulatory assets	242,513	565,543	766,708	715,080	833,426
Other	824,536	747,469	629,149	649,885	530,364
Goodwill	82,190	82,190	82,190	82,190	82,190
Total assets	$	16,284,244	$	15,822,637	$	15,004,007	$	13,745,251	$	13,104,051

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Accounts, interest and dividends payable	$	272,793	$	225,433	$	205,894	$	245,574	$	243,027
Deposit liabilities	8,169,696	8,172,212	7,386,957	6,271,902	6,158,852
Short-term borrowings - other than bank	172,568	53,998	129,379	185,710	73,992
Other bank borrowings	695,120	88,305	89,670	115,110	110,040
Long-term debt, net - other than bank	2,384,980	2,321,937	2,119,129	1,964,365	1,879,641
Deferred income taxes	262,462	384,760	395,089	379,324	372,518
Operating lease liabilities 1	126,604	136,760	160,432	199,571	-
Financing lease liabilities	48,709
Regulatory liabilities	1,055,650	996,768	959,786	972,310	950,236
Defined benefit pension and other postretirement benefit plans liability	71,813	348,072	567,438	513,287	538,384
Other	787,057	669,215	618,438	583,545	580,788
Total liabilities	14,047,452	13,397,460	12,632,212	11,430,698	10,907,478
Preferred stock of subsidiaries - not subject to mandatory redemption	34,293	34,293	34,293	34,293	34,293
Shareholders' equity
Common stock	1,692,697	1,685,496	1,678,368	1,678,257	1,669,267
Retained earnings	845,830	757,921	660,398	622,042	543,623
Accumulated other comprehensive loss, net of tax benefits	(336,028)	(52,533)	(1,264)	(20,039)	(50,610)
Total shareholders' equity	2,202,499	2,390,884	2,337,502	2,280,260	2,162,280
Total liabilities and shareholders' equity	$	16,284,244	$	15,822,637	$	15,004,007	$	13,745,251	$	13,104,051

Note:	See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.
1 HEI adopted ASU No. 2016-02 on January 1, 2019; pursuant to an election permissible under such standard, HEI did not reassess its prior conclusions about whether expired or existing contracts are or contain leases.


CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY INFORMATION
Hawaiian Electric Industries, Inc. and Subsidiaries	Accumulated
Unaudited	other
Common stock	Retained	comprehensive
(in thousands, except per share amounts)	Shares		Amount		earnings	income (loss)	Total
Balance, December 31, 2017	108,788	1,662,491	476,836	(41,941)	2,097,386
Net income for common stock	-	-	201,774	-	201,774
Other comprehensive loss, net of tax benefits	-	-	-	(8,669)	(8,669)
Issuance of common stock:
Share-based plans	91	2,650	-	-	2,650
Share-based expense and other, net	-	4,126	-	-	4,126
Common stock dividends ($1.24 per share)	-	-	(134,987)	-	(134,987)
Balance, December 31, 2018	108,879	1,669,267	543,623	(50,610)	2,162,280
Net income for common stock	-	-	217,882	-	217,882
Other comprehensive income, net of tax benefits	-	-	-	30,571	30,571
Issuance of common stock:
Share-based plans	94	3,092	-	-	3,092
Share-based expense and other, net	-	5,898	-	-	5,898
Common stock dividends ($1.28 per share)	-	-	(139,463)	-	(139,463)
Balance, December 31, 2019	108,973	1,678,257	622,042	(20,039)	2,280,260
Impact of adoption of ASU No. 2016-13	-	-	(15,372)	-	(15,372)
Balance, January 1, 2020, after the adoption of ASU No. 2016-13	108,973	1,678,257	606,670	(20,039)	2,264,888
Net income for common stock	-	-	197,824	-	197,824
Other comprehensive income, net of tax benefits	-	-	-	18,775	18,775
Issuance of common stock:
Share-based plans	208	3,973	-	-	3,973
Share-based expense and other, net	-	(3,862)	-	-	(3,862)
Common stock dividends ($1.32 per share)	-	-	(144,096)	-	(144,096)
Balance, December 31, 2020	109,181	1,678,368	660,398	(1,264)	2,337,502
Net income for common stock	-	-	246,166	-	246,166
Other comprehensive loss, net of tax benefits	-	-	-	(51,269)	(51,269)
Issuance of common stock:
Share-based plans	131	5,027	-	-	5,027
Share-based expense and other, net	-	2,101	-	-	2,101
Common stock dividends ($1.36 per share)	-	-	(148,643)	-	(148,643)
Balance, December 31, 2021	109,312	1,685,496	757,921	(52,533)	2,390,884
Net income for common stock	-	-	241,138	-	241,138
Other comprehensive loss, net of tax benefits	-	-	-	(283,495)	(283,495)
Issuance of common stock:
Share-based plans	159	5,831	-	-	5,831
Share-based expense and other, net	-	1,370	-	-	1,370
Common stock dividends ($1.40 per share)	-	-	(153,229)	-	(153,229)
Balance, December 31, 2022	109,471	$	1,692,697	$	845,830	$	(336,028)	$	2,202,499

Note: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.


CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION
Hawaiian Electric Industries, Inc. and Subsidiaries
Unaudited

Years ended December 31	2022	2021	2020
(in thousands)
Cash flows from operating activities
Net income	$	243,028	$	248,056	$	199,714
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property, plant and equipment	256,069	246,158	238,114
Other amortization	38,772	32,544	52,664
Provision for credit losses	2,037	(25,825)	50,811
Loans originated, held for sale	(128,195)	(340,986)	(564,525)
Proceeds from sale of loans, held for sale	136,504	364,848	567,652
Gain on sale of investment securities, net	(8,123)	(528)	(9,275)
Gain on sale of loans	(1,692)	(9,305)	(23,734)
Deferred income taxes	(32,502)	(5,398)	(1,706)
Share-based compensation expense	10,366	9,135	5,810
Allowance for equity funds used during construction	(10,574)	(9,534)	(8,768)
Other	(7,580)	(7,060)	1,366
Changes in assets and liabilities
Decrease (increase) in accounts receivable and unbilled revenues, net	(151,551)	(73,811)	2,533
Decrease (increase) in fuel oil stock	(87,569)	(45,819)	34,202
Decrease (increase) in regulatory assets	34,600	(13,874)	1,007
Increase (decrease) in regulatory liabilities	44,888	15,358	(16,562)
Increase (decrease) in accounts, interest and dividends payable	28,169	9,925	(20,068)
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes	121,636	41,331	(35,610)
Decrease in defined benefit pension and other postretirement benefit plans liability	(5,191)	(6,660)	(2,029)
Change in other assets and liabilities, net	(28,616)	(52,882)	(42,189)
Net cash provided by operating activities	454,476	375,673	429,407
Cash flows from investing activities
Available-for-sale investment securities purchased	(366,177)	(1,464,644)	(1,361,594)
Principal repayments on available-for-sale investment securities	342,354	583,238	478,351
Proceeds from sale of available-for-sale investment securities	-	197,354	169,157
Purchases of held-to-maturity investment securities	-	(349,579)	(146,738)
Proceeds from repayments or maturities of held-to-maturity investment securities	29,432	53,654	59,894
Purchase of stock from Federal Home Loan Bank	(173,768)	(33,022)	(27,350)
Redemption of stock from Federal Home Loan Bank	157,208	31,702	27,104
Net decrease (increase) in loans held for investment	(661,492)	72,489	(229,311)
Proceeds from sale of residential loans	-	59,844	-
Proceeds from sale of real estate held for sale	3,806	-	-
Purchase of loans held for investment	(102,504)	-	-
Capital expenditures	(344,037)	(314,524)	(383,895)
Proceeds from sale of low income housing investments	-	-	6,725
Contributions to low income housing investments	(844)	(16,131)	(9,403)
Acquisition of business	(25,706)	-	-
Other, net	13,046	27	3,412
Net cash used in investing activities	$	(1,128,682)	$	(1,179,592)	$	(1,413,648)

(Continued on next page)


CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION (Continued)
Hawaiian Electric Industries, Inc. and Subsidiaries
Unaudited

Years ended December 31	2022	2021	2020

(in thousands)
Cash flows from financing activities
Net increase (decrease) in deposit liabilities	$	(2,516)	$	785,255	$	1,115,055
Net increase (decrease) in short-term borrowings with original maturities of three months or less	83,652	(10,493)	(71,219)
Proceeds from issuance of short-term debt	35,000	-	165,000
Repayment of short-term debt	-	(65,000)	(150,000)
Net increase (decrease) in other bank borrowings with original maturities of three months or less	606,815	(1,365)	(25,440)
Proceeds from issuance of other bank borrowings	-	-	30,000
Repayments of other bank borrowings	-	-	(30,000)
Proceeds from issuance of long-term debt	227,312	285,886	415,997
Repayment of long-term debt and funds transferred for repayment of long term debt	(221,910)	(82,262)	(178,969)
Withheld shares for employee taxes on vested share-based compensation	(3,165)	(2,006)	(5,700)
Common stock dividends	(153,229)	(148,643)	(144,096)
Preferred stock dividends of subsidiaries	(1,890)	(1,890)	(1,890)
Other	(2,398)	(3,080)	(3,203)
Net cash provided by financing activities	567,671	756,402	1,115,535
Net increase (decrease) in cash, cash equivalents and restricted cash	(106,535)	(47,517)	131,294
Cash, cash equivalents and restricted cash, January 1	311,462	358,979	227,685
Cash, cash equivalents and restricted cash, December 31	204,927	311,462	358,979
Less: Restricted cash	(5,050)	(5,911)	(17,558)
Cash and cash equivalents, December 31	$	199,877	$	305,551	$	341,421
Note: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.


CONSOLIDATED CAPITAL STRUCTURE
Hawaiian Electric Industries, Inc. and Subsidiaries
Unaudited

December 31	2022	2021	2020	2019	2018
(in thousands)

Short-term borrowings - other than bank 1	$	172,568	$	53,998	$	129,379	$	185,710	$	73,992
Long-term debt - other than bank 1
Long-term debt of electric utility subsidiaries 2	1,684,816	1,676,402	1,561,302	1,497,667	1,418,802
HEI 5.67% senior notes, due 2021	-	-	50,000	50,000	50,000
HEI 2.99% term loan, paid in 2022	-	150,000	150,000	150,000	150,000
HEI 3.99% senior notes, due 2023	50,000	50,000	50,000	50,000	50,000
HEI 4.58% senior notes, due 2025	50,000	50,000	50,000	50,000	50,000
HEI 4.72% senior notes, due 2028	100,000	100,000	100,000	100,000	100,000
HEI 2.82% senior notes, due 2028	24,000	24,000	-	-	-
HEI 2.48% senior notes, due 2028	30,000	30,000	-	-	-
HEI 2.98% senior notes, due 2030	50,000	50,000	50,000	-	-
HEI 3.15% senior notes, due 2031	51,000	51,000	-	-	-
HEI 2.78% senior notes, due 2031	25,000	25,000	-	-	-
HEI 2.98% senior notes, due 2032	30,000	-	-	-	-
HEI 5.43% senior notes, due 2032	75,000	-	-	-	-
HEI 5.43% senior notes, due 2034	35,000	-	-	-	-
HEI 3.74% senior notes, due 2051	20,000	20,000	-	-	-
HEI 3.94% senior notes, due 2052	20,000	-	-	-	-
Hamakua Energy 4.02% non-recourse notes, due 2030	49,048	52,166	56,030	59,699	63,438
Mauo LIBOR + 1.375% loan, due 2023	11,060	21,702	41,046	9,349	-
Mauo 4.90% non-recourse loan, due 2034	17,692	12,686	-	-	-
Ka`ie`ie Waho Company 2.79% non-recourse loan, due 2031	10,936	12,145	13,000	-	-
Mahipapa 1.90% non-recourse loan, due 2034 to 2036	58,869	-	-	-	-
Mahipapa 5.25% non-recourse unsecured loan, due 2027	724	-	-	-	-
Less unamortized debt issuance cost and debt discount	(8,165)	(3,164)	(2,249)	(2,350)	(2,599)
2,384,980	2,321,937	2,119,129	1,964,365	1,879,641

Preferred stock of subsidiaries -
not subject to mandatory redemption	34,293	34,293	34,293	34,293	34,293
Shareholders' equity
Common stock	1,692,697	1,685,496	1,678,368	1,678,257	1,669,267
Retained earnings	845,830	757,921	660,398	622,042	543,623
Accumulated other comprehensive loss, net of tax benefits	(336,028)	(52,533)	(1,264)	(20,039)	(50,610)
2,202,499	2,390,884	2,337,502	2,280,260	2,162,280
$	4,794,340	$	4,801,112	$	4,620,303	$	4,464,628	$	4,150,206

LONG-TERM DEBT MATURITIES as of December 31, 2022
Hawaiian Electric Industries, Inc. and Subsidiaries
Unaudited
2023	2024	2025	2026	2027	Thereafter	Total
(in thousands)
Long-term debt - other than bank 1
Electric utilities2	$	100,000	$	-	$	47,000	$	125,000	$	100,000	$	1,320,000	$	1,692,000
HEI	50,000	-	50,000	-	-	460,000	560,000
Hamakua Energy	5,353	4,669	4,733	3,800	5,112	25,381	49,048
Mauo	11,790	768	849	941	1,028	13,376	28,752
Ka`ie`ie Waho Company	1,209	1,209	1,209	1,209	1,209	4,891	10,936
Mahipapa	3,990	6,560	5,289	5,397	4,062	34,295	59,593
Less unamortized debt issuance cost	(15,349)
$	172,342	$	13,206	$	109,080	$	136,347	$	111,411	$	1,857,943	$	2,384,980

Note:	See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.
1 Excludes deposit liabilities, other bank borrowings and intercompany borrowings.
2 See pages 14 to 16 for additional information.


GAAP EARNINGS AND RETURN ON AVERAGE COMMON EQUITY BY COMPANY
Hawaiian Electric Industries, Inc. and Subsidiaries
Unaudited

Years ended December 31	2022	2021	2020	2019	2018
(dollars in thousands, except per share amounts)
Net income (loss) for common stock by company
Electric utilities
Hawaiian Electric	$	141,436	$	132,289	$	121,836	$	113,673	$	98,260
Hawaii Electric Light	21,816	21,180	27,493	20,817	24,481
Maui Electric	25,677	24,173	20,011	22,350	20,912

Utilities consolidated	188,929	177,642	169,340	156,840	143,653
ASB	79,989	101,234	57,583	88,973	82,509
HEI and other	(27,780)	(32,710)	(29,099)	(27,931)	(24,388)
Consolidated HEI	$	241,138	$	246,166	$	197,824	$	217,882	$	201,774

Diluted earnings per common share	$	2.20	$	2.25	$	1.81	$	1.99	$	1.85

Retuon average common equity by company (simple average)
Electric utilities
Hawaiian Electric	8.5	%	8.5	%	8.2	%	8.0	%	7.4	%
Hawaii Electric Light	6.4	6.5	8.9	7.0	8.4
Maui Electric	7.3	7.4	6.6	7.8	7.6
Utilities consolidated	8.2	8.1	8.1	7.8	7.6
ASB1	14.1	13.8	8.1	13.5	13.5
Consolidated HEI	10.5	%	10.4	%	8.6	%	9.8	%	9.5	%
1 Calculated using average daily balance