Noninterest expense (pretax) for the fourth quarter of 2010 was $35.0 million, the lowest level since the start of the PIP and down from $41.7 million in the fourth quarter of 2009 and $36.3 million in the third quarter of 2010.The bank remains strongly capitalized with a Tier 1 leverage ratio of 9.2% and total risk-based capital ratio of 13.9% as of the end of the fourth quarter of 2010. UTILITY WELL POSITIONED TO EXECUTE CLEAN ENERGY STRATEGY Full Year Results: Utility net income was $76.6 million in 2010 compared to $79.4 million in 2009. The $2.8 million net income decline resulted primarily from (on an after-tax basis):
- Approximately $6 million lower kilowatthour sales;
- $23 million higher operations and maintenance (O&M) expenses 1; and
- $11 million higher financing costs primarily due to generating units put into service in the latter part of 2009.
- $26 million of rate relief granted in our 2009 Oahu and 2010 Maui rate cases;
- Tax settlement items, which net to $6 million; and
- $5 million lower fuel costs related to improved system-wide generating unit efficiencies.