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TheStreet Open House

HEI Reports 2010 And Fourth Quarter Earnings

Stocks in this article: HE

Reported noninterest income is being adjusted by a 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.

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 17.

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 or 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.

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 September 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.

       
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) Three months ended Years ended
  December 31, December 31,
(in thousands, except per share amounts)     2010       2009       2010       2009  
Revenues
Electric utility $ 627,034 $ 574,355 $ 2,382,366 $ 2,035,009
Bank 68,718 45,241 282,693 274,719
Other     (15 )     (17 )     (77 )     (138 )
          695,737       619,579       2,664,982       2,309,590  
Expenses
Electric utility 584,033 522,088 2,203,978 1,865,338
Bank 48,065 53,793 190,105 242,955
Other     4,397       4,386       14,688       13,633  
          636,495       580,267       2,408,771       2,121,926  
Operating income (loss)
Electric utility 43,001 52,267 178,388 169,671
Bank 20,653 (8,552 ) 92,588 31,764
Other     (4,412 )     (4,403 )     (14,765 )     (13,771 )
          59,242       39,312       256,211       187,664  
Interest expense–other than on deposit liabilities and other bank borrowings
(19,622 ) (20,909 ) (81,538 ) (76,330 )
Allowance for borrowed funds used during construction 497 801 2,558 5,268
Allowance for equity funds used during construction     1,199       1,869       6,016       12,222  
Income before income taxes 41,316 21,073 183,247 128,824
Income taxes     16,145       6,946       67,822       43,923  
Net income 25,171 14,127 115,425 84,901
Preferred stock dividends of subsidiaries     473       473       1,890       1,890  
Net income for common stock   $ 24,698     $ 13,654     $ 113,535     $ 83,011  
Basic earnings per common share   $ 0.26     $ 0.15     $ 1.22     $ 0.91  
Diluted earnings per common share   $ 0.26     $ 0.15     $ 1.21     $ 0.91  
Dividends per common share   $ 0.31     $ 0.31     $ 1.24     $ 1.24  
Weighted-average number of common shares outstanding     94,231       92,056       93,421       91,396  
Adjusted weighted-average shares     94,430       92,345       93,693       91,516  
 
Income (loss) by segment
Electric utility $ 18,915 $ 23,305 $ 76,589 $ 79,446
Bank 13,296 (4,459 ) 58,456 21,767
Other     (7,513 )     (5,192 )     (21,510 )     (18,202 )
Net income for common stock   $ 24,698     $ 13,654     $ 113,535     $ 83,011  
 

This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI’s Annual Report on SEC Form 10-K for the years ended December 31, 2009 and 2010 (when filed), respectively, 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, as updated by SEC Forms 8-K.

 
   
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
December 31     2010       2009  
(dollars in thousands)
 

Assets

Cash and cash equivalents $ 330,651 $ 503,922
Accounts receivable and unbilled revenues, net 266,996 241,116
Available-for-sale investment and mortgage-related securities 678,152 432,881
Investment in stock of Federal Home Loan Bank of Seattle 97,764 97,764
Loans receivable held for investment, net 3,489,880 3,645,578
Loans held for sale, at lower of cost or fair value 7,849 24,915
Property, plant and equipment, net of accumulated depreciation of $2,037,598 and $1,945,482 in 2010 and 2009, respectively
3,165,918 3,088,611
Regulatory assets 478,330 426,862
Other 487,614 381,163
Goodwill     82,190       82,190  
Total assets   $ 9,085,344     $ 8,925,002  

Liabilities and shareholders’ equity

Liabilities
Accounts payable $ 202,446 $ 159,044
Interest and dividends payable 27,814 27,950
Deposit liabilities 3,975,372 4,058,760
Short-term borrowings—other than bank 24,923 41,989
Other bank borrowings 237,319 297,628
Long-term debt, net—other than bank 1,364,942 1,364,815
Deferred income taxes 278,958 188,875
Regulatory liabilities 296,797 288,214
Contributions in aid of construction 335,364 321,544
Other     823,479       700,242  
Total liabilities     7,567,414       7,449,061  
 
Preferred stock of subsidiaries - not subject to mandatory redemption     34,293       34,293  
 
Shareholders’ equity
Preferred stock, no par value, authorized 10,000,000 shares; issued: none - -
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 94,690,932 shares and 92,520,638 shares in 2010 and 2009, respectively
 
1,314,199 1,265,157
Retained earnings 181,910 184,213
Accumulated other comprehensive income (loss), net of taxes     (12,472 )     (7,722 )
Total shareholders' equity     1,483,637       1,441,648  
Total liabilities and shareholders' equity   $ 9,085,344     $ 8,925,002  
 

This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI’s Annual Report on SEC Form 10-K for the years ended December 31, 2009 and 2010 (when filed), respectively, 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, as updated by SEC Forms 8-K.

 
   
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Years ended December 31     2010       2009  
(in thousands)
Cash flows from operating activities
Net income $ 115,425 $ 84,901
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property, plant and equipment 154,523 151,282
Other amortization 4,605 5,389
Provision for loan losses 20,894 32,000
Loans receivable originated and purchased, held for sale (360,527 ) (443,843 )
Proceeds from sale of loans receivable, held for sale 392,406 471,194
Net losses on sale of investment and mortgage-related securities - 32,034
Other-than-temporary impairment on available-for-sale mortgage-related securities - 15,444
Changes in deferred income taxes 97,791 12,787
Changes in excess tax benefits from share-based payment arrangements 45 310
Allowance for equity funds used during construction (6,016 ) (12,222 )
Decrease in cash overdraft (141 ) -
Changes in assets and liabilities
Decrease (increase) in accounts receivable and unbilled revenues, net (25,880 ) 59,550
Increase in fuel oil stock (74,044 ) (946 )
Increase in accounts, interest and dividends payable 43,266 3,410
Changes in prepaid and accrued income taxes and utility revenue taxes (5,252 ) (61,977 )
Changes in other assets and liabilities     (16,378 )     (64,845 )
Net cash provided by operating activities     340,717       284,468  
Cash flows from investing activities
Available-for-sale investment and mortgage-related securities purchased (714,552 ) (297,864 )
Principal repayments on available-for-sale investment and mortgage-related securities 465,437 357,233
Proceeds from sale of available-for-sale investment and mortgage-related securities - 185,134
Net decrease in loans held for investment 118,892 484,960
Proceeds from sale of real estate acquired in settlement of loans 5,967 1,555
Capital expenditures (182,125 ) (304,761 )
Contributions in aid of construction 22,555 14,170
Other     5,092       1,199  
Net cash provided by (used in) investing activities     (278,734 )     441,626  
Cash flows from financing activities
Net decrease in deposit liabilities (83,388 ) (121,415 )
Net increase (decrease) in short-term borrowings with original maturities of three months or less (17,066 ) 41,989
Net decrease in retail repurchase agreements (60,308 ) (3,829 )
Proceeds from other bank borrowings - 310,000
Repayments of other bank borrowings - (689,517 )
Proceeds from issuance of long-term debt - 153,186
Changes in excess tax benefits from share-based payment arrangements (45 ) (310 )
Net proceeds from issuance of common stock 22,706 15,329
Common stock dividends (93,034 ) (96,843 )
Preferred stock dividends of subsidiaries (1,890 ) (1,890 )
Decrease in cash overdraft - (9,545 )
Other     (2,229 )     (2,762 )
Net cash used in financing activities     (235,254 )     (405,607 )
Net increase (decrease) in cash and cash equivalents (173,271 ) 320,487
Cash and cash equivalents, January 1     503,922       183,435  
Cash and cash equivalents, December 31   $ 330,651     $ 503,922  
 

This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI’s Annual Report on SEC Form 10-K for the years ended December 31, 2009 and 2010 (when filed), respectively, 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, as updated by SEC Forms 8-K.

 
     
Hawaiian Electric Company, Inc. (HECO) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) Three months ended Years ended
December 31, December 31,
(dollars in thousands, except per barrel amounts)     2010       2009       2010       2009  
 
Operating revenues   $ 616,412     $ 573,049     $ 2,367,441     $ 2,026,672  
Operating expenses
Fuel oil 237,800 208,077 900,408 671,970
Purchased power 144,625 135,684 548,800 499,804
Other operation 68,864 61,764 251,027 248,515
Maintenance 37,593 25,969 127,487 107,531
Depreciation 36,140 36,127 149,708 144,533
Taxes, other than income taxes 57,839 53,958 222,117 191,699
Income taxes     11,081       14,984       48,053       48,212  
      593,942       536,563       2,247,600       1,912,264  
Operating income     22,470       36,486       119,841       114,408  
Other income
Allowance for equity funds used during construction 1,199 1,869 6,016 12,222
Other, net     9,556       994       11,679       7,487  
      10,755       2,863       17,695       19,709  
Interest and other charges
Interest on long-term debt 14,383 14,362 57,532 51,820
Amortization of net bond premium and expense 783 1,162 2,975 3,254
Other interest charges (858 ) 822 1,003 2,870
Allowance for borrowed funds used during construction     (497 )     (801 )     (2,558 )     (5,268 )
      13,811       15,545       58,952       52,676  
Net income 19,414 23,804 78,584 81,441
Preferred stock dividends of subsidiaries     229       229       915       915  
Net income attributable to HECO 19,185 23,575 77,669 80,526
Preferred stock dividends of HECO     270       270       1,080       1,080  
Net income for common stock   $ 18,915     $ 23,305     $ 76,589     $ 79,446  
OTHER ELECTRIC UTILITY INFORMATION
Kilowatthour sales (millions) 2,435 2,487 9,579 9,690
Wet-bulb temperature (Oahu average; degrees Fahrenheit) 69.3 69.8 68.3 68.8
Cooling degree days (Oahu) 1,166 1,224 4,661 4,815
Average fuel oil cost per barrel $92.12 $77.65 $87.62 $63.91
Customer accounts (end of period) 444,856 442,584
 
Twelve months ended
Return on average common equity   December 31, 2010

 

(rate-making, simple average method)   Allowed % 1 Actual %  
HECO 10.50 6.15
HELCO 10.70 6.24
MECO 10.50 3.90

1 Based on the interim decisions applicable to rates in effect on December 31, 2010. Allowed ROACEs for HECO, HELCO and MECO based on their last final rate case decisions were 10.00% (reflects the approval of decoupling and other cost-recovery mechanisms), 10.70% and 10.70%, respectively. In late 2010, MECO and HELCO received interim orders which based rates on 10.5% ROACE. MECO's rates became effective in August 2010. HELCO’s rates became effective in January 2011. HECO received its final order based on 10% ROACE. HECO's final rates are expected to become effective in March 2011.

 

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 years ended December 31, 2009 and 2010 (when filed) 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, as updated by SEC Forms 8-K.

 
   
Hawaiian Electric Company, Inc. (HECO) and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
December 31     2010       2009  
(in thousands, except share data)
 
Assets
Utility plant, at cost
Land $ 51,364 $ 52,530
Plant and equipment 4,896,974 4,696,257
Less accumulated depreciation (1,941,059 ) (1,848,416 )
Construction in progress     101,562       132,980  
Net utility plant     3,108,841       3,033,351  
Current assets
Cash and cash equivalents 122,936 73,578
Customer accounts receivable, net 138,171 133,286
Accrued unbilled revenues, net 104,384 84,276
Other accounts receivable, net 9,376 8,449
Fuel oil stock, at average cost 152,705 78,661
Materials and supplies, at average cost 36,717 35,908
Prepayments and other 55,216 16,201
Regulatory assets     7,349       6,849  
Total current assets     626,854       437,208  
Other long-term assets
Regulatory assets 470,981 420,013
Unamortized debt expense 14,030 14,288
Other     64,974       73,532  
Total other long-term assets     549,985       507,833  
    $ 4,285,680     $ 3,978,392  
Capitalization and liabilities
Capitalization

Common stock, $6 2/3 par value, authorized 50,000,000 shares; outstanding 13,830,823 shares and 13,786,959 shares in 2010 and 2009, respectively

$ 92,224 $ 91,931
Premium on capital stock 389,609 385,659
Retained earnings 854,856 827,036
Accumulated other comprehensive income, net of income taxes     709       1,782  
Common stock equity 1,337,398 1,306,408
Cumulative preferred stock – not subject to mandatory redemption 34,293 34,293
Long-term debt, net     1,057,942       1,057,815  
Total capitalization     2,429,633       2,398,516  
Current liabilities
Accounts payable 178,959 132,711
Interest and preferred dividends payable 20,603 21,223
Taxes accrued 175,960 156,092
Other     56,354       48,192  
Total current liabilities     431,876       358,218  
Deferred credits and other liabilities
Deferred income taxes 269,286 180,603
Regulatory liabilities 296,797 288,214
Unamortized tax credits 58,810 56,870
Retirement benefits liability 355,844 296,623
Other     108,070       77,804  
Total deferred credits and other liabilities     1,088,807       900,114  
Contributions in aid of construction     335,364       321,544  
    $ 4,285,680     $ 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 years ended December 31, 2009 and 2010 (when filed) 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, as updated by SEC Forms 8-K.
 
   
Hawaiian Electric Company, Inc. (HECO) and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Years ended December 31     2010       2009  
(in thousands)
 
Cash flows from operating activities
Net income $ 78,584 $ 81,441
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property, plant and equipment 149,708 144,533
Other amortization 7,725 10,045
Changes in deferred income taxes 95,685 14,762
Changes in tax credits, net 2,841 (1,332 )
Allowance for equity funds used during construction (6,016 ) (12,222 )
Decrease in cash overdraft (141 ) -
Changes in assets and liabilities
Decrease (increase) in accounts receivable (5,812 ) 32,605
Decrease (increase) in accrued unbilled revenues (20,108 ) 22,268
Increase in fuel oil stock (74,044 ) (946 )
Increase in materials and supplies (809 ) (1,376 )
Increase in regulatory assets (2,936 ) (17,597 )
Increase in accounts payable 25,392 9,717
Changes in prepaid and accrued income taxes and utility revenue taxes (10,170 ) (61,951 )
Changes in other assets and liabilities     7,890       (2,571 )
Net cash provided by operating activities     247,789       217,376  
Cash flows from investing activities
Capital expenditures (174,344 ) (302,327 )
Contributions in aid of construction 22,555 14,170
Other     1,327       340  
Net cash used in investing activities     (150,462 )     (287,817 )
Cash flows from financing activities
Common stock dividends (48,769 ) (55,000 )
Proceeds from issuance of common stock 4,250 61,914
Preferred stock dividends of HECO and subsidiaries (1,995 ) (1,995 )
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
- (10,464 )
Decrease in cash overdraft - (9,545 )
Other     (1,455 )     (978 )
Net cash provided by (used in) financing activities     (47,969 )     137,118  
Net increase in cash and cash equivalents 49,358 66,677
Cash and cash equivalents, January 1     73,578       6,901  
Cash and cash equivalents, December 31   $ 122,936     $ 73,578  
 
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 years ended December 31, 2009 and 2010 (when filed) 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, as updated by SEC Forms 8-K.
 
         
American Savings Bank, F.S.B. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME DATA
(Unaudited) Three months ended Years ended
December 31, September 30, December 31, December 31,
(in thousands)     2010     2010     2009     2010     2009  
Interest and dividend income
Interest and fees on loans $ 46,898 $ 49,221 $ 51,303 $ 195,192 $ 217,838
Interest and dividends on investment and mortgage-related securities
    4,131     3,852     5,215       14,946     26,977  
      51,029     53,073     56,518       210,138     244,815  
Interest expense
Interest on deposit liabilities 3,031 3,390 5,293 14,696 34,046
Interest on other borrowings     1,395     1,414     1,787       5,653     9,497  
      4,426     4,804     7,080       20,349     43,543  
Net interest income 46,603 48,269 49,438 189,789 201,272
Provision for loan losses     8,584     5,961     5,000       20,894     32,000  
Net interest income after provision for loan losses     38,019     42,308     44,438       168,895     169,272  
Noninterest income
Fee income on deposit liabilities 4,849 6,109 8,329 26,369 30,713
Fees from other financial services 7,436 6,781 6,520 27,280 25,267
Fee income on other financial products 1,530 1,697 1,548 6,487 5,833
Net losses on sale of securities * - - (32,078 ) - (32,034 )
Net losses on available-for-sale securities - - - - (15,444 )
Other income     3,874     3,769     4,404       12,419     15,569  
      17,689     18,356     (11,277 )     72,555     29,904  
Noninterest expense
Compensation and employee benefits 16,999 18,168 18,918 71,476 73,990
Occupancy 3,931 4,176 6,101 16,548 22,057
Data processing 2,292 2,019 4,030 13,213 14,382
Services 1,477 1,544 1,533 6,594 11,189
Equipment 1,671 1,600 1,737 6,620 8,849
Loss on early extinguishment of debt * - - 659 - 760
Other expense     8,668     8,798     8,717       34,487     36,244  
      35,038     36,305     41,695       148,938     167,471  
Income (loss) before income taxes 20,670 24,359 (8,534 ) 92,512 31,705
Income taxes (benefits) *     7,374     9,066     (4,075 )     34,056     9,938  
Net income (loss)   $ 13,296   $ 15,293   $ (4,459 )   $ 58,456   $ 21,767  
 
 
OTHER BANK INFORMATION (%)
Return on average assets 1.10 1.26 (0.36 ) 1.20 0.43
Return on average equity 10.59 12.04 (3.64 ) 11.62 4.54
Net interest margin 4.21 4.31 4.27 4.23 4.19
Net charge-offs to average loans outstanding (annualized) 0.72 0.53 0.98 0.61 0.66
Efficiency ratio 54 54 109 56 72
 
As of period end
Nonperforming assets to loans outstanding and real estate owned **
1.77 1.87 1.85
Allowance for loan losses to loans outstanding 1.15 1.09 1.12
Tier-1 leverage ratio 9.2 9.3 9.0
Total risk-based capital ratio 13.9 14.2 14.1
Tangible common equity to total assets 8.6 8.8 8.3
 
* 2009 net income included a $19.3 million after-tax charge related to ASB's sale of private-issued mortgage-related securities (PMRS) in the fourth quarter of 2009. The $32.1 million loss on sale of PMRS is included in "Noninterest income-Net losses on sale of securities" and the related income tax benefits of $12.8 million is included in "Income taxes (benefits)."
 
** Regulatory basis
 
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI’s Annual Report on SEC Form 10-K for the years ended December 31, 2009 and 2010 (when filed), respectively, 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, as updated by SEC Forms 8-K.
 
American Savings Bank, F.S.B. and Subsidiaries    
CONSOLIDATED BALANCE SHEETS DATA
(Unaudited)
 
December 31     2010       2009  
(in thousands)
 
Assets
Cash and cash equivalents $ 204,397 $ 425,896
Federal funds sold 1,721 1,479
Available-for-sale investment and mortgage-related securities 678,152 432,881
Investment in stock of Federal Home Loan Bank of Seattle 97,764 97,764
Loans receivable held for investment, net 3,489,880 3,645,578
Loans held for sale, lower of cost or fair value 7,849 24,915
Other 234,806 230,282
Goodwill     82,190       82,190  
    $ 4,796,759     $ 4,940,985  
 
Liabilities and shareholder’s equity
Deposit liabilities–noninterest-bearing $ 865,642 $ 808,474
Deposit liabilities–interest-bearing 3,109,730 3,250,286
Other borrowings 237,319 297,628
Other     90,683       92,129  
      4,303,374       4,448,517  
 
Common stock 330,562 329,439
Retained earnings 169,111 172,655
Accumulated other comprehensive loss, net of tax benefits     (6,288 )     (9,626 )
      493,385       492,468  
    $ 4,796,759     $ 4,940,985  
 
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI’s Annual Report on SEC Form 10-K for the years ended December 31, 2009 and 2010 (when filed), respectively, 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, as updated by SEC Forms 8-K.
               
American Savings Bank, F.S.B. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(Unaudited)
 
 
(in thousands)   1Q08 4Q09   1Q10   2Q10   3Q10   4Q10
 

Noninterest income

Per income statement - GAAP $ 17,928 $ (11,277 ) $ 17,852 $ 18,658 $ 18,356 $ 17,689
Net (gains) losses on sale of securities (935 ) 32,078 - - - -
Gain on sale of other assets - (1,772 ) - - - -
Other nonrecurring income   (384 )   (500 )     -       -       21       (744 )
Adjusted noninterest income $ 16,609   $ 18,529     $ 17,852     $ 18,658     $ 18,377     $ 16,945  
 
 

Noninterest expense

Per income statement - GAAP $ 44,234 $ 41,695 $ 37,970 $ 39,625 $ 36,305 $ 35,038
Real estate transactions - (1,633 ) - (30 ) (699 ) 109
FISERV conversion costs - (972 ) (1,257 ) (2,697 ) (144 ) (284 )
Severance - (390 ) (1 ) (48 ) (492 ) (13 )
Technology write-offs - (35 ) - - - -
Prepayment penalty on early
extinguishment of debt   -     (659 )     -       -       -       -  
Adjusted noninterest expense $ 44,234   $ 38,006     $ 36,712     $ 36,850     $ 34,970     $ 34,850  
 

Other bank information

Noninterest expense (annualized)
Reported $ 176,936 $ 166,780 $ 151,880 $ 158,500 $ 145,220 $ 140,152
Adjusted 176,936 152,024 146,848 147,400 139,880 139,400
 
Efficiency ratio
Reported 65 % 109 % 58 % 59 % 54 % 54 %
Adjusted 66 % 56 % 56 % 55 % 52 % 54 %
 
Pretax, preprovision income (annualized)
Reported $ 96,964 $ (14,136 ) $ 108,380 $ 106,948 $ 121,280 $ 117,016
Adjusted 91,688 119,844 113,412 118,048 126,704 114,792
 
Return on average assets
Reported 0.85 % (0.36 )% 1.12 % 1.32 % 1.26 % 1.10 %
Adjusted 0.81 % 1.27 % 1.18 % 1.45 % 1.33 % 1.08 %
 

 

 

 

 

 

 

 





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