American Savings Bank Reports Third Quarter 2012 Earnings

          American Savings Bank Reports Third Quarter 2012 Earnings

Net Income of $14.2 Million

Bank Continues to Deliver Solid Results

PR Newswire

HONOLULU, Oct. 30, 2012

HONOLULU, Oct. 30, 2012 /PRNewswire/ --American Savings Bank, F.S.B.
(American), a wholly-owned indirect subsidiary of Hawaiian Electric
Industries, Inc. (HEI) (NYSE: HE) today reported net income for the third
quarter of 2012 of $14.2 million, compared with $14.2 million in the second,
or linked, quarter of 2012 and $15.5 million in the third quarter of 2011.

"In this prolonged low interest rate environment, American Savings Bank's
stable results reflect our continued disciplined approach to control interest
rate and credit risk and to position ourselves for future growth. Our loan
portfolio grew by $83 million over the prior year and revenues benefited from
strong market share gains in our residential mortgage activities," said
Richard Wacker, president and chief executive officer of American.

Third quarter 2012 net income of $14.2 million was consistent with the linked
quarter as higher revenue, primarily driven by gains on sales of loans, was
offset by a slightly higher provision for loan losses and noninterest expense.

Compared to the same quarter of 2011, net income declined by $1.2 million.
The decline was largely driven by (on an after-tax basis):

  o$2 million higher noninterest expense primarily attributable to spending
    for new products and projects aimed at longer-term growth; and
  o$1 million lower net interest income from declining yields on assets which
    were partially offset by loan growth.

These were partially offset by $2 million (after-tax) higher revenue from
gains on sale of new residential mortgages originated in the quarter.
Residential mortgage production totaled $272million in the quarter, compared
to $123 million in the same quarter of the prior year, outperforming the
overall Hawaii market growth.

Net interest margin was 3.92% in the third quarter of 2012 compared to 3.97%
in the linked quarter and 4.11% in the third quarter of 2011. The decline in
net interest margin was attributable to lower yields on interest-earning
assets due to the low interest rate environment.

Provision for loan losses (pretax) was $3.6 million in the third quarter of
2012 compared to $2.4 million in the linked quarter and $3.8 million in the
third quarter of 2011. Year-to-date provision expense was $9.5 million, down
from $10.9 million in the same period last year and consistent with overall
credit quality trends and the improvement in the Hawaii economy.

Non-interest expense (pretax) was $38.6 million in the third quarter of 2012,
up from $37.6million in the linked quarter and $35.6 million in the third
quarter of 2011 due primarily to spending on new products and projects for
future growth.

Loan growth continued in the third quarter of 2012 with a year-to-date
annualized growth rate of 2.3%, in line with the bank's target of low to
mid-single digit loan growth for the year. Consistent with American's strategy
to control interest rate risk, year-to-date loan growth was primarily driven
by shorter-duration and variable rate loans, offset by a controlled decline in
the proportion of long-term fixed rate residential mortgages and land

Total deposits were $4.1 billion at September 30, 2012, down $10 million from
June30,2012 primarily due to the strategic decline of higher costing
certificates of deposit of $23million. Low-cost core deposits increased $13
million during the quarter to $3.6 billion at September 30, 2012. Average
cost of funds was a very low 0.25% for third quarter 2012, down 2basis points
from the linked quarter.

Overall, return on average equity and return on average assets were 11.2% and
1.15%, respectively, in the quarter. American's solid results enabled it to
pay dividends of $10 million to HEI in the quarter while maintaining healthy
capital levels -- leverage ratio of 9.3% and total risk-based capital ratio of
12.9% at September 30, 2012.


Concurrent with American's regulatory filing 30 days after the end of the
quarter, American announced its third quarter 2012 financial results today.
Please note that these reported results relate only to American and are not
necessarily indicative of HEI's consolidated financial results for the third
quarter of 2012.

HEI plans to announce its third quarter 2012 consolidated financial results on
Wednesday, November 7, 2012 and will conduct a webcast and teleconference call
to review third quarter 2012 consolidated earnings, including American's
earnings, on Thursday, November8,2012, at 8:00 a.m. Hawaii time (1:00 p.m.
Eastern time). The event can be accessed through HEI's website at
www.hei.comor by dialing (866)383-8008, passcode: 56693947 for the
teleconference call. The presentation for the webcast will be on HEI's
website under the headings "Investor Relations," "News & Events" and
"Presentations & Webcasts." HEI and Hawaiian Electric Company, Inc. (HECO)
intend to continue to use HEI's website,, as a means of disclosing
additional information. Such disclosures will be included on HEI's website in
the Investor Relations section. Accordingly, investors should routinely
monitor such portions of HEI's website, in addition to following HEI's, HECO's
and American's press releases, HEI's and HECO's Securities and Exchange
Commission (SEC) filings and HEI's public conference calls and webcasts. The
information on HEI's website is not incorporated by reference in this document
or in HEI's and HECO'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 order to review documents filed with and issued by
the PUC. No information on the PUC website is incorporated by reference in
this document or in HEI's and HECO's SEC filings.

An online replay of the webcast will be available at the same website
beginning about two hours after the event. Replays of the teleconference call
will also be available approximately two hours after the event through
November 22, 2012, by dialing (888)286-8010, passcode: 43247040.

HEI supplies power to approximately 450,000 customers or 95% of Hawaii's
population through its electric utilities, HECO, Hawaii Electric Light
Company, Inc. and Maui Electric Company, Limited and provides a wide array of
banking and other financial services to consumers and businesses through
American, one of Hawaii's largest financial institutions.


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, 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 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" and "Risk Factors" discussions (which are
incorporated by reference herein) set forth in HEI's Quarterly Report on Form
10-Q for the quarter ended June30,2012 and 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 the report, presentation or filing in
which they are made. Except to the extent required by the federal securities
laws, HEI, HECO, American 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.
(Unaudited)               Three months ended                 Nine months ended
                          September   June 30,  September   September 30,
                          30,                   30,
(in thousands)            2012        2012       2011        2012      2011
Interest income
Interest and fees on      $  43,880  $ 44,473  $  46,240  $         $
loans                                                        133,241   137,985
Interest on investment
and mortgage-related      3,432       3,297      3,654       10,534    11,216
 Total interest       47,312      47,770     49,894      143,775   149,201
Interest expense
Interest on deposit       1,540       1,696      2,166       5,015     7,146
Interest on other         1,201       1,214      1,375       3,676     4,124
 Total interest       2,741       2,910      3,541       8,691     11,270
Net interest income       44,571      44,860     46,353      135,084   137,931
Provision for loan        3,580       2,378      3,822       9,504     10,927
Net interest income
after provision for loan  40,991      42,482     42,531      125,580   127,004
Noninterest income
Fees from other           7,674       7,463      7,219       22,474    21,405
financial services
Fee income on deposit     4,527       4,322      4,492       13,127    13,540
Fee income on other       1,660       1,532      1,806       4,741     5,340
financial products
Gain on sale of loans     4,077       2,185      1,092       8,297     2,268
Other income              1,346       1,449      1,597       4,155     5,977
 Total noninterest    19,284      16,951     16,206      52,794    48,530
Noninterest expense
Compensation and          18,684      18,696     17,646      56,026    53,317
employee benefits
Occupancy                 4,400       4,241      4,313       12,866    12,841
Data processing           2,644       2,489      2,451       7,244     6,479
Services                  3,062       2,221      1,686       7,066     5,406
Equipment                 1,762       1,807      1,712       5,299     5,141
Other expense             8,096       8,106      7,763       22,909    23,651
 Total noninterest    38,648      37,560     35,571      111,410   106,835
Income before income      21,627      21,873     23,166      66,964    68,699
Income taxes             7,419       7,684      7,709       22,690    24,196
Net income                $  14,208  $ 14,189  $  15,457  $         $
                                                             44,274   44,503
Comprehensive income      $  15,517  $ 15,456  $  18,335  $         $
                                                             46,872   49,360
Return on average         1.15        1.15       1.26        1.19      1.22
Return on average         11.24       11.35      12.32       11.81     11.91
Return on average         13.41       13.58      14.73       14.14     14.26
tangible common equity
Net interest margin       3.92        3.97       4.11        3.98      4.11
Net charge-offs to
average loans             0.35        0.19       0.54        0.27      0.50
Efficiency ratio          60          60         56          59        57
As of period end
Nonperforming assets to
loans outstanding and     1.73        1.84       1.94
real estate owned **
Allowance for loan
losses to loans           1.06        1.06       1.04
Leverage ratio **         9.3         9.2        9.1
Total risk-based capital  12.9        12.8       13.0
ratio **
Tangible common equity    8.72        8.58       8.69
to total assets

** Regulatory basis
This information should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for
the year ended December 31, 2011 and HEI's Quarterly Reports on SEC Form 10-Q
for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012
(when filed), as updated by SEC Forms 8-K. 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.
                                                September 30,   December 31,
(in thousands)                                  2012            2011
Cash and cash equivalents                       $    152,474 $   219,678
Available-for-sale investment and               664,051         624,331
mortgage-related securities
Investment in stock of Federal Home Loan Bank   96,893          97,764
of Seattle
Loans receivable held for investment            3,745,558       3,680,724
 Allowance for loan losses                    (39,810)        (37,906)
 Loans receivable held for investment, net 3,705,748       3,642,818
Loans held for sale, at lower of cost or fair   16,495          9,601
Other                                           234,999         233,592
Goodwill                                        82,190          82,190
 Total assets                               $   4,952,850 $  4,909,974
Liabilities and shareholder's equity
Deposit liabilities–noninterest-bearing         $   1,097,809 $   993,828
Deposit liabilities–interest-bearing            3,028,979       3,076,204
Other borrowings                                211,219         233,229
Other                                           107,960         118,078
 Total liabilities                          4,445,967       4,421,339
Common stock                                    333,256         331,880
Retained earnings                               180,400         166,126
Accumulated other comprehensive loss, net of    (6,773)         (9,371)
tax benefits
 Total shareholder's equity                 506,883         488,635
 Total liabilities and shareholder's equity $   4,952,850 $  4,909,974

This information should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for
the year ended December 31, 2011 and HEI's Quarterly Reports on SEC Form 10-Q
for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012
(when filed), as updated by SEC Forms 8-K. Results of operations for interim
periods are not necessarily indicative of results to be expected for future
interim periods or the full year.

Contact: Shelee M.T. Kimura
         Manager, Investor Relations & Telephone: (808) 543-7384
         Strategic Planning            E-mail:


SOURCE Hawaiian Electric Industries, Inc.

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