American Savings Bank Reports First Quarter 2013 Earnings

          American Savings Bank Reports First Quarter 2013 Earnings

Net Income of $14.2 Million

Bank Continues to Deliver Solid Results

PR Newswire

HONOLULU, April 30, 2013

HONOLULU, April 30, 2013 /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 first
quarter of 2013 of $14.2 million, compared to $14.4 million in the fourth (or
linked) quarter of 2012 and compared to $15.9 million in the first quarter of
2012 that included $1 million from a one-time release of tax-related


"American continues to deliver stable financial results despite the challenges
of the ongoing low interest rate environment. We once again generated good
loan growth and mortgage production while at the same time benefiting from
lower credit costs than last quarter and the same period last year. As a
result, we mostly offset lower net interest margins and delivered solid
profitability with return on average equity of 11.3% and return on average
assets of 1.12%," said Richard Wacker, president and chief executive officer
of American.

First quarter 2013 net income of $14.2 million was in line with the linked
quarter as net interest income was flat as loan growth helped offset lower
financing margins. Noninterest income was lower, largely due to lower gains
on sales of residential mortgage loans, but was offset by lower provision for
loan losses and lower noninterest expense.

Compared to the same quarter of 2012, net income declined by $1.7 million
including the effect of the $1 million release of tax reserves mentioned
previously. The remaining $0.7 million decline was largely driven by higher
noninterest expense ($2 million after tax), primarily attributable to targeted
staffing and information technology (IT) expense increases, and lower net
interest income due to declining asset yields. These were partially offset by
the favorable effect of loan growth, higher noninterest income primarily from
higher gains on sale of new residential mortgages originated in the quarter,
and lower provisions for loan losses. Residential mortgage production totaled
$226million in the quarter, a 37% increase compared to the prior year.

Net interest margin was 3.78% in the first quarter of 2013 compared to 3.81%
in the linked quarter and 4.04% in the first quarter of 2012. The decline in
net interest margin was attributable to the ongoing trend of lower yields on
interest-earning assets as loans continued to re-price down in the low
interest rate environment.

Provision for loan losses (pretax) was $1.9 million in the first quarter of
2013 compared to $3.4 million in the linked quarter and $3.5 million in the
first quarter of 2012. The decline in the provision is consistent with the
ongoing improvement in the credit quality of the bank's loan portfolio and the
Hawaii economy. The first quarter 2013 net charge-off ratio improved to 0.12%
from 0.13% in the linked quarter and 0.28% in the prior year quarter.

Non-interest expense (pretax) was $38.7 million in the first quarter of 2013
compared to $40.9million in the linked quarter and $35.2 million in the first
quarter of 2012. The decrease from the linked quarter is attributable to
higher spending associated with key strategic projects in the fourth quarter
of 2012. The increase from the prior year quarter is due primarily to
targeted staffing increases to support increased business volumes, IT and risk
management capabilities.

Loan growth improved in the first quarter of 2013 with an annualized growth
rate of 6.9% compared to 2.6% in the linked quarter. This quarter's loan
growth was driven by residential mortgages, home equity lending, and
commercial real estate and is in line with the bank's target of mid-single
digit loan growth for the year.

Total deposits were $4.3 billion at March 31, 2013, up $83 million from
December31,2012, primarily due to the increase in low-cost core deposits
which increased $87million during the quarter to $3.8 billion. Average cost
of funds remained low at 0.23% for the first quarter 2013, consistent with the
linked quarter and down 5basis points from the same prior year period.

Overall, return on average equity and return on average assets were strong at
11.3% and 1.12%, respectively, in the quarter. American's solid results
enabled it to pay dividends of $10million to HEI in the quarter while
maintaining healthy capital levels -- leverage ratio of 9.1% and total
risk-based capital ratio of 12.8% at March 31, 2013.


Concurrent with American's regulatory filing 30 days after the end of the
quarter, American announced its first quarter 2013 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 first
quarter of 2013.

HEI plans to announce its first quarter 2013 consolidated financial results on
Wednesday, May 8, 2013 and will conduct a webcast and teleconference call to
review first quarter 2013 consolidated earnings, including American's
earnings, on Wednesday, May 8,2013, at 7:00 a.m. Hawaii time (1:00 p.m.
Eastern time). The event can be accessed through HEI's website at
or by dialing (800)706-7741, passcode: 55241897 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 material
information, as well as other important 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. Also, at the Investor Relations section of HEI's website,
investors may sign up to receive e-mail alerts (based on each investor's
selected preferences). 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 in 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 May 22,
2013, by dialing (888)286-8010, passcode: 75540244.

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 Annual Report on Form
10-K for the year ended December31,2012 and HEI's subsequent 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, 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

American Savings Bank, F.S.B.
(Unaudited)                            Three months ended
                                       March 31,  December 31,    March 31,
(in thousands)                         2013        2012             2012
Interest income
Interest and fees on loans             $ 42,603   $            $ 44,888
Interest on investment and             3,464       3,288            3,805
mortgage-related securities
 Total interest income             46,067      46,104           48,693
Interest expense
Interest on deposit liabilities        1,312       1,408            1,779
Interest on other borrowings           1,164       1,193            1,261
 Total interest expense            2,476       2,601            3,040
Net interest income                    43,591      43,503           45,653
Provision for loan losses              1,858       3,379            3,546
Net interest income after provision    41,733      40,124           42,107
for loan losses
Noninterest income
Fees from other financial services     7,643       8,887            7,337
Fee income on deposit liabilities      4,314       4,648            4,278
Fee income on other financial          1,794       1,836            1,549
Gain on sale of loans                  3,346       6,331            2,035
Other income                           1,592       1,164            1,360
 Total noninterest income          18,689      22,866           16,559
Noninterest expense
Compensation and employee benefits     20,088      19,953           18,646
Occupancy                              4,123       4,313            4,225
Data processing                        2,987       2,854            2,111
Services                               2,103       2,800            1,783
Equipment                              1,774       1,806            1,730
Other expense                          7,595       9,207            6,707
 Total noninterest expense         38,670      40,933           35,202
Income before income taxes             21,752      22,057           23,464
Income taxes                          7,597       7,694            7,587
Net income                             $ 14,155   $    14,363  $ 15,877
Comprehensive income                   $ 15,484   $            $ 15,899
OTHER BANK INFORMATION (annualized %, except as of period end)
Return on average assets              1.12        1.15             1.29
Return on average equity             11.28       11.29            12.87
Return on average tangible common      13.49       13.47            15.44
Net interest margin                    3.78        3.81             4.04
Net charge-offs to average loans       0.12        0.13             0.28
Efficiency ratio                       61          61               56
As of period end
Nonperforming assets to loans          1.89        1.87             2.02
outstanding and real estate owned *
Allowance for loan losses to loans     1.11        1.11             1.05
Tier-1 leverage ratio *                9.1         9.1              9.1
Total risk-based capital ratio *       12.8        12.8             12.9
Tangible common equity to total        8.38        8.39             8.46
Dividend paid to HEI (via ASHI) ($     10          15               10
in millions)
* 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, 2012 and HEI's Quarterly Report on SEC Form 10-Q
for the quarter ended March 31, 2013 (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.
                                                    March 31,   December 31,
(in thousands)                                      2013        2012
Cash and cash equivalents                           $  224,870 $   184,430
Available-for-sale investment and mortgage-related  659,400     671,358
Investment in stock of Federal Home Loan Bank of    95,152      96,022
Loans receivable held for investment                3,845,732   3,779,218
 Allowance for loan losses                        (42,730)    (41,985)
 Loans receivable held for investment, net     3,803,002   3,737,233
Loans held for sale, at lower of cost or fair value 5,351       26,005
Other                                               246,420     244,435
Goodwill                                            82,190      82,190
 Total assets                                   $5,116,385  $  5,041,673
Liabilities and shareholder's equity
Deposit liabilities–noninterest-bearing             $1,223,921  $  1,164,308
Deposit liabilities–interest-bearing                3,088,699   3,065,608
Other borrowings                                    193,233     195,926
Other                                               106,337     117,752
 Total liabilities                              4,612,190   4,543,594
Common stock                                        334,344     333,712
Retained earnings                                   183,918     179,763
Accumulated other comprehensive loss, net of tax    (14,067)    (15,396)
 Total shareholder's equity                     504,195     498,079
 Total liabilities and shareholder's equity     $5,116,385  $  5,041,673

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, 2012 and HEI's Quarterly Report on SEC Form 10-Q
for the quarter ended March 31, 2013 (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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