American Savings Bank Reports First Quarter 2023 Financial Results
1Q 2023 Net Income of
Solid Credit Quality, Strong Capital Base and Ample Liquidity
“The bank delivered solid results for the quarter, growing net income over the previous quarter to
Financial Highlights
First quarter 2023 net interest income was
The first quarter 2023 provision for credit losses was
The net charge-off ratio for the first quarter of 2023 was
Noninterest income was
Noninterest expense was
Total loans were
Total deposits were
Wholesale funding totaled
For the first quarter of 2023, return on average equity was
In the first quarter of 2023, ASB paid dividends of
HEI EARNINGS RELEASE, HEI WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS AND 2023 GUIDANCE
Concurrent with ASB’s regulatory filing 30 days after the end of the quarter, ASB announced its first quarter 2023 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 first quarter 2023.
HEI plans to announce its first quarter 2023 consolidated financial results on Tuesday, May 9, 2023 and will also conduct a webcast and conference call at 10:15 a.m.
To listen to the conference call, dial 1-833-470-1428 (
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 May 23, 2023. To access the audio replay, dial 1-929-458-6194 (
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
The HEI family of companies provides the energy and financial services that empower much of the economic and community activity of
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, 2022 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 |
||||||||
(in thousands) |
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||
Interest and dividend income |
|
|
|
|
|
|
||||
Interest and fees on loans |
|
$ |
64,842 |
|
$ |
60,331 |
|
$ |
46,005 |
|
Interest and dividends on investment securities |
|
|
14,637 |
|
|
14,315 |
|
|
13,984 |
|
Total interest and dividend income |
|
|
79,479 |
|
|
74,646 |
|
|
59,989 |
|
Interest expense |
|
|
|
|
|
|
||||
Interest on deposit liabilities |
|
|
6,837 |
|
|
3,755 |
|
|
947 |
|
Interest on other borrowings |
|
|
7,721 |
|
|
4,775 |
|
|
5 |
|
Total interest expense |
|
|
14,558 |
|
|
8,530 |
|
|
952 |
|
Net interest income |
|
|
64,921 |
|
|
66,116 |
|
|
59,037 |
|
Provision for credit losses |
|
|
1,175 |
|
|
2,729 |
|
|
(3,263 |
) |
Net interest income after provision for credit losses |
|
|
63,746 |
|
|
63,387 |
|
|
62,300 |
|
Noninterest income |
|
|
|
|
|
|
||||
Fees from other financial services |
|
|
4,679 |
|
|
4,764 |
|
|
5,587 |
|
Fee income on deposit liabilities |
|
|
4,599 |
|
|
4,640 |
|
|
4,691 |
|
Fee income on other financial products |
|
|
2,744 |
|
|
2,628 |
|
|
2,718 |
|
Bank-owned life insurance |
|
|
1,425 |
|
|
1,872 |
|
|
681 |
|
Mortgage banking income |
|
|
130 |
|
|
62 |
|
|
1,077 |
|
Gain on sale of real estate |
|
|
— |
|
|
776 |
|
|
1,002 |
|
Other income, net |
|
|
801 |
|
|
606 |
|
|
372 |
|
Total noninterest income |
|
|
14,378 |
|
|
15,348 |
|
|
16,128 |
|
Noninterest expense |
|
|
|
|
|
|
||||
Compensation and employee benefits |
|
|
30,204 |
|
|
30,361 |
|
|
27,215 |
|
Occupancy |
|
|
5,588 |
|
|
7,030 |
|
|
5,952 |
|
Data processing |
|
|
5,012 |
|
|
4,537 |
|
|
4,151 |
|
Services |
|
|
2,595 |
|
|
2,967 |
|
|
2,439 |
|
Equipment |
|
|
2,646 |
|
|
2,937 |
|
|
2,329 |
|
Office supplies, printing and postage |
|
|
1,165 |
|
|
1,142 |
|
|
1,060 |
|
Marketing |
|
|
1,016 |
|
|
1,091 |
|
|
1,018 |
|
FDIC insurance |
|
|
1,077 |
|
|
978 |
|
|
808 |
|
Other expense |
|
|
5,114 |
|
|
5,056 |
|
|
3,241 |
|
Total noninterest expense |
|
|
54,417 |
|
|
56,099 |
|
|
48,213 |
|
Income before income taxes |
|
|
23,707 |
|
|
22,636 |
|
|
30,215 |
|
Income taxes |
|
|
5,145 |
|
|
4,739 |
|
|
6,345 |
|
Net income |
|
$ |
18,562 |
|
$ |
17,897 |
|
$ |
23,870 |
|
Comprehensive income (loss) |
|
$ |
36,992 |
|
$ |
29,282 |
|
$ |
(98,571 |
) |
OTHER BANK INFORMATION (annualized %, except as of period end) |
|
|
|
|
||||||
Return on average assets |
|
|
0.78 |
|
|
0.76 |
|
|
1.04 |
|
Return on average equity |
|
|
15.51 |
|
|
15.73 |
|
|
13.70 |
|
Return on average tangible common equity |
|
|
18.73 |
|
|
19.20 |
|
|
15.53 |
|
Net interest margin |
|
|
2.85 |
|
|
2.91 |
|
|
2.79 |
|
Efficiency ratio |
|
|
68.62 |
|
|
68.86 |
|
|
64.14 |
|
Net charge-offs to average loans outstanding |
|
|
0.14 |
|
|
0.06 |
|
|
0.01 |
|
As of period end |
|
|
|
|
|
|
||||
Nonaccrual loans to loans receivable held for investment |
|
|
0.24 |
|
|
0.28 |
|
|
0.72 |
|
Allowance for credit losses to loans outstanding |
|
|
1.18 |
|
|
1.21 |
|
|
1.30 |
|
Tangible common equity to tangible assets |
|
|
4.3 |
|
|
4.1 |
|
|
5.8 |
|
Tier-1 leverage ratio |
|
|
7.7 |
|
|
7.8 |
|
|
7.8 |
|
Dividend paid to HEI (via ASB Hawaii, Inc.) ($ in millions) |
|
$ |
14.0 |
|
$ |
10.0 |
|
$ |
15.0 |
|
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) |
March 31, 2023 |
December 31, 2022 |
||||||||||
Assets |
|
|
|
|
||||||||
Cash and due from banks |
|
$ |
138,742 |
|
|
$ |
153,042 |
|
||||
Interest-bearing deposits |
|
|
44,315 |
|
|
|
3,107 |
|
||||
Cash and cash equivalents |
|
|
183,057 |
|
|
|
156,149 |
|
||||
Investment securities |
|
|
|
|
||||||||
Available-for-sale, at fair value |
|
|
1,419,755 |
|
|
|
1,429,667 |
|
||||
Held-to-maturity, at amortized cost |
|
|
1,238,185 |
|
|
|
1,251,747 |
|
||||
Stock in Federal Home Loan Bank, at cost |
|
|
10,000 |
|
|
|
26,560 |
|
||||
Loans held for investment |
|
|
6,059,354 |
|
|
|
5,978,906 |
|
||||
Allowance for credit losses |
|
|
(71,296 |
) |
|
|
(72,216 |
) |
||||
Net loans |
|
|
5,988,058 |
|
|
|
5,906,690 |
|
||||
Loans held for sale, at lower of cost or fair value |
|
|
660 |
|
|
|
824 |
|
||||
Other |
|
|
688,165 |
|
|
|
692,143 |
|
||||
Goodwill |
|
|
82,190 |
|
|
|
82,190 |
|
||||
Total assets |
|
$ |
9,610,070 |
|
|
$ |
9,545,970 |
|
||||
Liabilities and shareholder’s equity |
|
|
|
|
||||||||
Deposit liabilities–noninterest-bearing |
|
$ |
2,769,789 |
|
|
$ |
2,811,077 |
|
||||
Deposit liabilities–interest-bearing |
|
|
5,460,812 |
|
|
|
5,358,619 |
|
||||
Other borrowings |
|
|
680,690 |
|
|
|
695,120 |
|
||||
Other |
|
|
206,317 |
|
|
|
212,269 |
|
||||
Total liabilities |
|
|
9,117,608 |
|
|
|
9,077,085 |
|
||||
Common stock |
|
|
1 |
|
|
|
1 |
|
||||
Additional paid-in capital |
|
|
356,391 |
|
|
|
355,806 |
|
||||
Retained earnings |
|
|
454,255 |
|
|
|
449,693 |
|
||||
Accumulated other comprehensive loss, net of tax benefits |
|
|
|
|
||||||||
Net unrealized losses on securities |
$ |
(308,622 |
) |
|
$ |
(328,904 |
) |
|
||||
Retirement benefit plans |
|
(9,563 |
) |
|
(318,185 |
) |
|
(7,711 |
) |
|
(336,615 |
) |
Total shareholder’s equity |
|
|
492,462 |
|
|
|
468,885 |
|
||||
Total liabilities and shareholder’s equity |
|
$ |
9,610,070 |
|
|
$ |
9,545,970 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the SEC.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230428005086/en/
Mateo Garcia
Director, Investor Relations
808-543-7300
Source: American Savings Bank