Hawaiian Electric Industries Reports 2013 Year-End & Fourth Quarter Earnings

 Hawaiian Electric Industries Reports 2013 Year-End & Fourth Quarter Earnings  2013 Net Income of $161.5 Million; Diluted Earnings Per Share (EPS) of $1.62 Fourth Quarter Net Income of $39.0 Million; EPS of $0.39  PR Newswire  HONOLULU, Feb. 18, 2014  HONOLULU, Feb. 18, 2014 /PRNewswire/ --  Selected 2013 Highlights:    oCore net income^1of $161.5 million in 2013 vs $163.1 million in 2012;     Reported net income of $161.5 million in 2013 vs $138.7 million in 2012   oCore EPS^1 of $1.62 in 2013 vs $1.68 in 2012; Reported EPS of $1.62 in     2013 vs $1.42 in 2012   oROE of 9.7% -- 8.0% utility; 11.4% bank   oSuccessfully accessed the capital markets to fund ongoing utility     investments in local infrastructure to modernize the electric grid         oExecuted $180 million equity forward sale agreement in March 2013        oRefinanced $216 million of debt at lower interest rates    oContinued investments by local shareholders: Of the shareholders who     disclose residence, over a third are Hawaii based, representing at least     25% of total HEI ownership   oContinued 113-year history of continuous dividends: Through HEI's dividend     reinvestment program, shareholders invested $42 million in HEI by     reinvesting their dividends and buying more stock    oContinued legacy of delivering value for customers and Hawaii:         oRecord 18% of electricity used by Hawaiian Electric customers was          from renewable sources              +Surpassed Hawaii's 2015 renewable portfolio standard of 15%             +Avoided-oil equivalent of 2.9 million barrels which would have               cost our state approximately $350 million^2 in imported oil in               2013             +Led the nation by far in the integration of customer-sited               solar: 10% of Oahu customers using rooftop solar by the end of               2013             +Bank continued clean energy financing for rooftop solar vendors             +Integrated two new lower-cost utility-scale solar projects on               Oahu             +Reached milestone to deactivate Honolulu Power Plant (January               2014)             +Leveraging collaborative partnerships and over $20 million in               grant funding to seek clean energy solutions for Hawaii         oUtility proposals to the Hawaii Public Utilities Commission for 259          MW renewables priced ~30% lower than current rates^3        oUtility operating expenses managed to inflationary increases while          expanding strategic initiatives        oBank provided over $2 billion in new credit and refinancings to          customers        oContributed over ten thousand volunteer hours and over $2 million of          charitable contributions to community organizations  Hawaiian Electric Industries, Inc.(NYSE - HE) (HEI) today reported 2013 year-end consolidated net income for common stock of $161.5 million, or diluted earnings per share (EPS) of $1.62. For the fourth quarter of 2013, consolidated net income for common stock was $39.0million, or $0.39 EPS. The comparison to prior year results is shown on a core earnings basis^1 in the table below. Core earnings exclude a $24 million after-tax write-down in the fourth quarter of 2012 related to a settlement agreement between Hawaiian Electric Company^4 and the Hawaii Consumer Advocate which was subsequently approved by the Hawaii Public Utilities Commission.   RECONCILIATION OF GAAP TO NON-GAAP MEASURES  ($ in millions, except per share amounts)                              Three months           Years                              ended December 31      ended December 31                              2013           2012    2013      2012  HEI CONSOLIDATED NET INCOME  GAAP (as reported)          $ 39.0         $ 13.8  $ 161.5   $ 138.7  Excluding special items     -              24.4    -         24.4  Non-GAAP (core)             $ 39.0         $ 38.3  $ 161.5   $ 163.1  HEI CONSOLIDATED DILUTED EARNINGS PER SHARE  GAAP (as reported)          $ 0.39         $ 0.14  $ 1.62    $ 1.42  Excluding special items     -              0.25    -         0.25  Non-GAAP (core)             $ 0.39         $ 0.39  $ 1.62    $ 1.68  Note: Columns may not foot due to rounding  "While earnings per share were down 4% due to earnings declines at both American Savings Bank and Hawaiian Electric Company, we continued to deliver a competitive 9.7% return on equity for the year. HEI's unique combination of companies continues to provide us with the financial resources to efficiently invest in our Hawaii-based  companies," said Constance Lau, HEI president and chief executive officer. "Our utility continued to invest in the modernization of our electric grid to ensure reliability and safety for our customers as we integrate more renewable energy. These investments helped us exceed Hawaii's 2015 Renewable Portfolio Standard of 15%, meeting 18% of customers' electricity needs with renewable sources in 2013. Ten percent of Oahu customers now have customer-sited solar, far more than any other utility. At the same time, we are focused on reducing costs for our customers with proposed utility-scale solar and wind projects priced 30% lower than the current cost of generation. We also are working with other stakeholders on the viability and benefits of bringing liquefied natural gas to Hawaii as a cleaner, lower-cost alternative to oil while we continue to aggressively pursue more renewable generation sources to displace fossil fuels."  "Our bank exceeded its loan growth goals while maintaining its targeted portfolio mix, gained market share in home lending, improved credit quality, and provided dividends to HEI while maintaining healthy capital levels. Overall, we are pleased that we were able to achieve many of our goals in a challenging and dynamic year," said Lau.  HAWAIIAN ELECTRIC COMPANY EARNINGS CONSISTENT WITH EXPECTATIONS  The utility's full-year and fourth quarter 2013 net income was $122.9 million and $32.0 million, respectively. The comparison to the prior year is shown on a core earnings basis in the chart below.   RECONCILIATION OF GAAP TO NON-GAAP MEASURES  ($ in millions)                           Three months       Years                           ended December 31  ended December 31                           2013      2012     2013      2012  HAWAIIAN ELECTRIC COMPANY NET INCOME  GAAP (as reported)       $ 32.0    $ 4.2    $ 122.9   $ 99.3  Excluding special items  -         24.4     -         24.4  Non-GAAP (core)          $ 32.0    $ 28.7   $ 122.9   $ 123.7  Note: Columns may not foot due to rounding  Full Year Results:  Core earnings declined by $0.8 million as additional recovery of costs was slightly less than the total increases in costs, primarily driven by higher customer service investments, lower cost recovery at Maui Electric due to its 2012 final rate case decision, and lower fuel efficiency performance on Oahu due to efforts to run units at lower levels. These impacts were partially offset by a net favorable income tax adjustment in 2013.  Operations and maintenance (O&M) expenses^5 (pretax) were $3 million or approximately 0.9% higher compared to the prior year and below inflationary levels. The increases were primarily due to higher customer service costs (discussed above) partially offset by lower expenses for substation and overhead line maintenance and lower overhaul expenses.  Fourth Quarter Results:  The $3.3 million core earnings improvement from the prior year quarter was primarily driven by lower O&M expenses^5. ^ Additional recovery of costs was offset by increases in depreciation resulting from infrastructure investments to modernize the grid and ensure reliability, and lower allowance for funds used during construction.  O&M expenses (pretax) were $6 million lower due to lower overhaul and substation maintenance costs in the fourth quarter of 2013.  AMERICAN SAVINGS BANK: SOLID PERFORMANCE AND LOAN GROWTH Full Year Results:  American Savings Bank's (American) net income for 2013 was $57.5 million compared to $58.6 million in 2012. Lower 2013 earnings compared to the prior year reflected the challenging regulatory and interest rate environment. The primary drivers impacting net income for the year were (on an after-tax basis):$2million lower net interest income as lower yields on loans continued to more than offset the favorable contributions of loan growth; $2 million lower noninterest income due to lower mortgage banking income and lower interchange fees as a result of the Durbin Amendment which became effective in July 2013 for American, offsetting all the increases in other fee income and the premium on the sale of the credit card portfolio; $4 million higher noninterest expense primarily driven by higher loan and investment product volumes to customers, sales and performance related incentives, and benefit cost increases; and $7million lower provision for loan losses resulting from continued improvement in credit quality, coupled with higher recoveries from previously charged-off loans and release of reserves related to the sale of the credit card portfolio.   Overall, American's return on average equity for the full year remained solid at 11.4% in 2013 compared to 11.7% in 2012 and the return on average assets was 1.13% in 2013 compared to 1.18% in 2012.  Fourth Quarter Results:  Fourth quarter 2013 net income of $12.2 million was $3.1 million lower than the linked quarter and $2.2 million lower than the same quarter of 2012.  Compared to the linked quarter of 2013, the $3.1 million net income decline was primarily driven by (on an after-tax basis): $2 million lower noninterest income mainly due to the gain on the strategic sale of the credit card portfolio recorded in the third quarter of 2013; and $1 million higher noninterest expense, largely attributable to the timing of certain performance-related compensation expenses.  Compared to the same quarter of 2012, net income declined by $2.2 million primarily driven by (on an after-tax basis): $4 million lower noninterest income primarily due to lower gains on sales of loans of new residential mortgages as the refinancing market contracted dramatically since mid-2013 and lower interchange fees; and $2 million lower provision for loan losses.  American's fourth quarter 2013 return on average equity was 9.6%, down from 12.1% in the linked quarter and 11.3% in the same quarter last year. Return on average assets was 0.94% for the fourth quarter of 2013, compared to 1.20% from the linked quarter and 1.15% in the same quarter last year.  Also refer to the American news release issued on January 30, 2014.  HOLDING AND OTHER COMPANIES  The holding and other companies' net losses were $18.9million in 2013 compared to $19.3million in 2012. Fourth quarter net losses were $5.2 million in 2013 compared to $4.8million in the fourth quarter 2012.  WEBCAST AND CONFERENCE CALL  HEI TO ANNOUNCE 2014 EPS GUIDANCE IN EARNINGS CONFERENCE CALL  Hawaiian Electric Industries, Inc. will conduct a webcast and conference call to review its 2013 earnings on Tuesday, February 18,2014, at 12:00 noon Hawaii time (5:00 p.m. Eastern time). HEI will announce 2014 EPS guidance during the scheduled webcast and conference call.  Interested parties may listen to the conference by calling (877) 415-3182 and entering passcode: 61297681, or by accessing the webcast on HEI's website at www.hei.com under the heading "Investor Relations." HEI and Hawaiian Electric Company intend to continue to use HEI's website, www.hei.com, 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, Hawaiian Electric Company's and American's press releases, HEI's and Hawaiian Electric Company'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 Hawaiian Electric Company'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 dms.puc.hawaii.gov/dmsin 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 Hawaiian Electric Company's SEC filings.  An online replay of the webcast will be available at the same website beginning about two hours after the event and will remain on HEI's website for 12 months. Replays of the conference call will also be available approximately two hours after the event through March 4, 2014, by dialing (888)286-8010, passcode: 22850388.  HEI supplies power to approximately 450,000 customers or 95% of Hawaii's population through its electric utilities, Hawaiian Electric Company, Inc., 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 Savings Bank, one of Hawaii's largest financial institutions.  NON-GAAP MEASURES  See "Explanation of HEI's Use of Certain Unaudited Non-GAAP Measures" and related reconciliations on pages 16 to 17 of this release.  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, 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 September30, 2013 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. 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 Company, 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.  ^1 Non-GAAP measure which excludes the fourth quarter after-tax partial write-off of certain utility assets of $24.4million in 2012. See the included tables for GAAP to Non-GAAP reconciliations and "Explanation of HEI's Use of Certain Unaudited Non-GAAP Measures" and related reconciliation. ^2Estimate based on 2013 average price per barrel of $125. ^3 Based on October 2013 on-peak avoided cost of oil generation. ^4 Hawaiian Electric Company, unless otherwise defined, refers to the three utilities, Hawaiian Electric Company, Inc. on Oahu, Maui Electric Company, Limited, and Hawaii Electric Light Company, Inc. ^5 Excludes net income neutral expenses covered by surcharges or by third parties of $8 million and $6 million for the full year in 2013 and 2012, respectively, and $3 million and $2 million in the fourth quarter of 2013 and 2012, respectively. See "Explanation of HEI's Use of Certain Unaudited Non-GAAP Measures" and the related reconciliation. Note: Amounts indicated as "after-tax" in this earnings release are based upon adjusting items for the composite statutory tax rates of 39% for the utilities and 40% for the bank.  Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries  CONSOLIDATED STATEMENTS OF INCOME  (Unaudited) (in thousands, except per       Three months          Years share amounts)                  ended December 31     ended December 31 Revenues                        2013       2012       2013         2012 Electric utility                $ 764,096  $ 769,182  $ 2,980,172  $ 3,109,439 Bank                            62,306     68,970     258,147      265,539 Other                           45         (5)        151          17 Total revenues                  826,447    838,147    3,238,470    3,374,995 Expenses Electric utility                704,588    749,739    2,734,659    2,896,427 Bank                            44,540     46,945     171,090      177,106 Other                           5,026      4,191      17,302       17,266 Total expenses                  754,154    800,875    2,923,051    3,090,799 Operating income (loss) Electric utility                59,508     19,443     245,513      213,012 Bank                            17,766     22,025     87,057       88,433 Other                           (4,981)    (4,196)    (17,151)     (17,249) Total operating income          72,293     37,272     315,419      284,196 Interest expense, net—other than on deposit liabilities     (15,774)   (19,393)   (75,479)     (78,151) and other bank borrowings Allowance for borrowed funds    620        1,904      2,246        4,355 used during construction Allowance for equity funds      1,531      1,459      5,561        7,007 used during construction Income before income taxes      58,670     21,242     247,747      217,407 Income taxes                    19,184     6,933      84,341       76,859 Net income                      39,486     14,309     163,406      140,548 Preferred stock dividends of    473        473        1,890        1,890 subsidiaries Net income for common stock     $ 39,013   $ 13,836   $ 161,516    $ 138,658 Basic earnings per common       $ 0.39     $ 0.14     $ 1.63       $ 1.43 share Diluted earnings per common     $ 0.39     $ 0.14     $ 1.62       $ 1.42 share Dividends per common share      $ 0.31     $ 0.31     $ 1.24       $ 1.24 Weighted-average number of      99,853     97,602     98,968       96,908 common shares outstanding Adjusted weighted-average       100,525    97,970     99,623       97,338 shares Net income (loss) for common stock by segment Electric utility                $ 31,990   $ 4,225    $ 122,929    $ 99,276 Bank                            12,184     14,363     57,534       58,637 Other                           (5,161)    (4,752)    (18,947)     (19,255) Net income for common stock     $ 39,013   $ 13,836   $ 161,516    $ 138,658 Comprehensive income attributable to Hawaiian        $ 57,949   $ 3,103    $ 171,189    $ 131,372 ElectricIndustries, Inc. Return on average common                              9.7%           8.9% equity  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, 2013 (when filed) and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013, as updated by SEC Forms 8-K.    Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries  CONSOLIDATED BALANCE SHEETS  (Unaudited) December 31                                         2013          2012 (dollarsinthousands) Assets Cash and cash equivalents                           $ 220,036     $ 219,662 Accounts receivable and unbilled revenues, net      346,785       362,823 Available-for-sale investment and mortgage-related  529,007       671,358 securities Investment in stock of Federal Home Loan Bank of    92,546        96,022 Seattle Loans receivable held for investment, net           4,110,113     3,737,233 Loans held for sale, at lower of cost or fair       5,302         26,005 value Property, plant and equipment, net of accumulated depreciation of $2,191,199 in 2013 and $2,125,286   3,858,947     3,594,829 in 2012 Regulatory assets                                   575,924       864,596 Other                                               519,194       494,414 Goodwill                                            82,190        82,190 Total assets                                        $ 10,340,044  $ 10,149,132 Liabilities and shareholders' equity Liabilities Accounts payable                                    $ 212,331     $ 212,379 Interest and dividends payable                      26,716        26,258 Deposit liabilities                                 4,372,477     4,229,916 Short-term borrowings—other than bank               105,482       83,693 Other bank borrowings                               244,514       195,926 Long-term debt, net—other than bank                 1,492,945     1,422,872 Deferred income taxes                               529,260       439,329 Regulatory liabilities                              349,299       324,152 Contributions in aid of construction                432,894       405,520 Defined benefit pension and other postretirement    288,539       656,394 benefit plans liability Other                                               524,224       524,535 Total liabilities                                   8,578,681     8,520,974 Preferred stock of subsidiaries - not subject to    34,293        34,293 mandatory redemption 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: 101,259,800 shares  1,488,126     1,403,484 in 2013 and 97,928,403 shares in 2012 Retained earnings                                   255,694       216,804 Accumulated other comprehensive loss, net of tax    (16,750)      (26,423) benefits Total shareholders' equity                          1,727,070     1,593,865 Total liabilities and shareholders' equity          $ 10,340,044  $ 10,149,132  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, 2013 (when filed) and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013, as updated by SEC Forms 8-K.    Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries  CONSOLIDATED CASH FLOWS  (Unaudited) YearsendedDecember31                                   2013       2012 (in thousands) Cash flows from operating activities Net income                                                $ 163,406  $ 140,548 Adjustments to reconcile net income to net cash provided by operating activities Depreciation of property, plant and equipment             160,061    150,389 Other amortization                                        4,667      7,958 Provision for loan losses                                 1,507      12,883 Impairment of utility assets                              —          40,000 Loans receivable originated and purchased, held for sale  (249,022)  (519,622) Proceeds from sale of loans receivable, held for sale     273,775    513,000 Gain on sale of credit card portfolio                     (2,251)    — Increase in deferred income taxes                         80,399     90,848 Excess tax benefits from share-based payment arrangements (430)      (61) Allowance for equity funds used during construction       (5,561)    (7,007) Change in cash overdraft                                  1,038      — Changes in assets and liabilities Decrease (increase) in accounts receivable and unbilled   16,038     (18,501) revenues, net Decrease in fuel oil stock                                27,332     10,129 Increase in regulatory assets                             (65,461)   (72,401) Decrease in accounts, interest and dividends payable      (23,153)   (39,738) Change in prepaid and accrued income taxes and utility    (19,406)   21,079 revenue taxes Decrease in defined benefit pension and other             (33,014)   (228) postretirement benefit plans liability Change in other assets and liabilities                    (2,779)    (94,734) Net cash provided by operating activities                 327,146    234,542 Cash flows from investing activities Available-for-sale investment and mortgage-related        (112,654)  (243,633) securities purchased Principal repayments on available-for-sale investment and 158,558    191,253 mortgage-related securities Proceeds from sale of available-for-sale investment and   71,367     3,548 mortgage-related securities Net increase in loans held for investment                 (398,426)  (112,730) Proceeds from sale of real estate acquired in settlement  9,212      11,336 of loans Capital expenditures                                      (353,879)  (325,480) Contributions in aid of construction                      32,160     45,982 Proceeds from sale of credit card portfolio               26,386     — Other                                                     3,516      2,677 Net cash used in investing activities                     (563,760)  (427,047) Cash flows from financing activities Net increase in deposit liabilities                       142,561    159,884 Net increase in short-term borrowings with original       21,789     14,872 maturities of three months or less Net decrease in retail repurchase agreements              (1,418)    (37,291) Proceeds from other bank borrowings                       130,000    5,000 Repayments of other bank borrowings                       (80,000)   (5,000) Proceeds from issuance of long-term debt                  286,000    457,000 Repayment of long-term debt                               (216,000)  (375,500) Excess tax benefits from share-based payment arrangements 430        61 Net proceeds from issuance of common stock                55,086     23,613 Common stock dividends                                    (98,383)   (96,202) Preferred stock dividends of subsidiaries                 (1,890)    (1,890) Other                                                     (1,187)    (2,645) Net cash provided by financing activities                 236,988    141,902 Net increase (decrease) in cash and cash equivalents      374        (50,603) Cash and cash equivalents, January1                      219,662    270,265 Cash and cash equivalents, December31                    $ 220,036  $ 219,662  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, 2013 (when filed) and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013, as updated by SEC Forms 8-K.  Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries  CONSOLIDATED STATEMENTS OF INCOME  (Unaudited)                                 Three months          Years ended                                 ended December 31     December 31 (dollars in thousands, except   2013       2012       2013         2012 per barrel amounts) Revenues                        $ 764,096  $ 769,182  $ 2,980,172  $ 3,109,439 Expenses Fuel oil                        307,814    311,343    1,185,552    1,297,419 Purchased power                 184,012    184,400    710,681      724,240 Other operation and             102,299    107,362    403,270      397,429 maintenance Depreciation                    38,160     35,942     154,025      144,498 Taxes, other than income taxes  72,303     70,692     281,131      292,841 Impairment of utility assets    —          40,000     —            40,000 Total expenses                  704,588    749,739    2,734,659    2,896,427 Operating income                59,508     19,443     245,513      213,012 Allowance for equity funds      1,531      1,459      5,561        7,007 used during construction Interest expense and other      (11,830)   (15,463)   (59,279)     (62,055) charges, net Allowance for borrowed funds    620        1,904      2,246        4,355 used during construction Income before income taxes      49,829     7,343      194,041      162,319 Income taxes                    17,340     2,619      69,117       61,048 Net income                      32,489     4,724      124,924      101,271 Preferred stock dividends of    229        229        915          915 subsidiaries Net income attributable to      32,260     4,495      124,009      100,356 Hawaiian Electric Preferred stock dividends of    270        270        1,080        1,080 Hawaiian Electric Net income for common stock     $ 31,990   $ 4,225    $ 122,929    $ 99,276 Comprehensive income attributable to Hawaiian        $ 33,516   $ 3,058    $ 124,507    $ 98,338 Electric OTHER ELECTRIC UTILITY INFORMATION Kilowatthour sales (millions)  Hawaiian Electric         1,759      1,771      6,859        6,976  Hawaii Electric Light     273        275        1,076        1,085  Maui Electric             292        290        1,135        1,145                                 2,324      2,336      9,070        9,206 Wet-bulb temperature (Oahu      69.3       69.4       68.8         68.9 average; degrees Fahrenheit) Cooling degree days (Oahu)      1,135      1,102      4,506        4,532 Average fuel oil cost per       $ 133.88   $ 133.37   $ 131.10     $ 138.09 barrel Return on average common equity (%) (simple average)^1  Hawaiian Electric                               7.98         7.57  Hawaii Electric Light                           7.41         5.90  Maui Electric                                   8.91         5.44  Hawaiian Electric                               8.02         6.91 Consolidated  This information should be read in conjunction with the consolidated financial statements and the notes thereto in Hawaiian Electric's Annual Report on SEC Form 10-K for the year ended December 31, 2013 (when filed) and the consolidated financial statements and the notes thereto in Hawaiian Electric's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013, as updated by SEC Forms 8-K.    Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries  CONSOLIDATED BALANCE SHEETS  (Unaudited) December31                                           2013         2012 (in thousands) Assets Utility plant, at cost Land                                                  $ 51,883     $ 51,568 Plant and equipment                                   5,701,875    5,364,400 Less accumulated depreciation                         (2,111,229)  (2,040,789) Construction in progress                              143,233      151,378 Net utility plant                                     3,785,762    3,526,557 Current assets Cash and equivalents                                  62,825       17,159 Customer accounts receivable, net                     175,448      210,779 Accrued unbilled revenues, net                        144,124      134,298 Other accounts receivable, net                        14,062       28,176 Fuel oil stock, at average cost                       134,087      161,419 Materials and supplies, at average cost               59,044       51,085 Prepayments and other                                 52,857       32,865 Regulatory assets                                     69,738       51,267 Total current assets                                  712,185      687,048 Other long-term assets Regulatory assets                                     506,186      813,329 Unamortized debt expense                              9,003        10,554 Other                                                 73,993       71,305 Total other long-term assets                          589,182      895,188 Total assets                                          $ 5,087,129  $ 5,108,793 Capitalization and liabilities Capitalization Common stock, $6 2/3 par value, authorized 50, 000 shares; outstanding 15,429,105 shares in 2013 and     $ 102,880    $ 97,788 14,665,264 shares in 2012 Premium on capital stock                              541,452      468,045 Retained earnings                                     948,624      907,273 Accumulated other comprehensive income (loss), net of 608          (970) taxes - retirement benefit plans Common stock equity                                   1,593,564    1,472,136 Cumulative preferred stock – not subject to mandatory 34,293       34,293 redemption Long-term debt, net                                   1,206,545    1,147,872 Total capitalization                                  2,834,402    2,654,301 Current liabilities Current portion of long-term debt                     11,400       — Accounts payable                                      189,559      186,824 Interest and preferred dividends payable              21,652       21,092 Taxes accrued                                         249,445      251,066 Regulatory liabilities                                1,916        1,212 Other                                                 63,881       60,801 Total current liabilities                             537,853      520,995 Deferred credits and other liabilities Deferred income taxes                                 507,161      417,611 Regulatory liabilities                                347,383      322,940 Unamortized tax credits                               73,539       66,584 Defined benefit pension and other postretirement      262,162      620,205 benefit plans liability Other                                                 91,735       100,637 Total deferred credits and other liabilities          1,281,980    1,527,977 Contributions in aid of construction                  432,894      405,520 Total capitalization and liabilities                  $ 5,087,129  $ 5,108,793  This information should be read in conjunction with the consolidated financial statements and the notes thereto in Hawaiian Electric's Annual Report on SEC Form 10-K for the year ended December 31, 2013 (when filed) and the consolidated financial statements and the notes thereto in Hawaiian Electric's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013, as updated by SEC Forms 8-K.    Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries  CONSOLIDATED STATEMENTS OF CASH FLOWS  (Unaudited) Years ended December31                                  2013        2012 (in thousands) Cash flows from operating activities Net income                                               $ 124,924   $ 101,271 Adjustments to reconcile net income to net cash provided by operating activities Depreciation of property, plant and equipment            154,025     144,498 Other amortization                                       5,077       6,998 Impairment of utility assets                             —           40,000 Increase in deferred income taxes                        64,507      86,878 Change in tax credits, net                               7,017       6,075 Allowance for equity funds used during construction      (5,561)     (7,007) Change in cash overdraft                                 1,038       — Changes in assets and liabilities   Decrease (increase) in accounts receivable           49,445      (47,004)  Decrease (increase) in accrued unbilled revenues     (9,826)     3,528  Decrease in fuel oil stock                           27,332      10,129  Increase in materials and supplies                   (7,959)     (7,897)  Increase in regulatory assets                        (65,461)    (72,401)  Decrease in accounts payable                         (20,828)    (38,913)  Change in prepaid and accrued income taxes and       (2,028)     25,239 revenue taxes  Increase (decrease) in defined benefit pension and   2,240       (744) other postretirementbenefit plans liability Change in other assets and liabilities                   (31,499)    (73,419) Net cash provided by operating activities                292,443     177,231 Cash flows from investing activities Capital expenditures                                     (342,485)   (310,091) Contributions in aid of construction                     32,160      45,982 Other                                                    (230)       — Net cash used in investing activities                    (310,555)   (264,109) Cash flows from financing activities Common stock dividends                                   (81,578)    (73,044) Preferred stock dividends of Hawaiian Electric and       (1,995)     (1,995) subsidiaries Proceeds from issuance of common stock                   78,500      44,000 Proceeds from issuance of long-term debt                 236,000     457,000 Repayment of long-term debt                              (166,000)   (368,500) Other                                                    (1,149)     (2,230) Net cash provided by financing activities                63,778      55,231 Net increase (decrease) in cash and cash equivalents     45,666      (31,647) Cash and cash equivalents, January1                     17,159      48,806 Cash and cash equivalents, December31                   $ 62,825    $ 17,159  This information should be read in conjunction with the consolidated financial statements and the notes thereto in Hawaiian Electric's Annual Report on SEC Form 10-K for the year ended December 31, 2013 (when filed) and the consolidated financial statements and the notes thereto in Hawaiian Electric's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013, as updated by SEC Forms 8-K.    American Savings Bank, F.S.B.  STATEMENTS OF INCOME DATA  (Unaudited) (in thousands)             Three months ended             Years ended                                                           December 31 Interest and dividend      December  September  December income                     31        30         31        2013       2012                            2013      2013       2012 Interest and fees on       $ 43,405  $  43,337  $ 42,816  $ 172,969  $ 176,057 loans Interest and dividends on investment and             3,372     3,025      3,288     13,095     13,822 mortgage-related securities Total interest and         46,777    46,362     46,104    186,064    189,879 dividend income Interest expense Interest on deposit        1,222     1,262      1,408     5,092      6,423 liabilities Interest on other          1,437     1,206      1,193     4,985      4,869 borrowings Total interest expense     2,659     2,468      2,601     10,077     11,292 Net interest income        44,118    43,894     43,503    175,987    178,587 Provision for loan losses  554       54         3,379     1,507      12,883 Net interest income after  43,564    43,840     40,124    174,480    165,704 provision for loan losses Noninterest income Fees from other financial  5,732     5,728      8,887     27,099     31,361 services Fee income on deposit      4,797     4,819      4,648     18,363     17,775 liabilities Fee income on other        2,117     2,714      1,836     8,405      6,577 financial products Mortgage banking income    1,413     1,547      6,331     8,309      14,628 Gains on sale of           —         —          —         1,226      134 securities Other income, net          1,470     3,888      1,164     8,681      5,185 Total noninterest income   15,529    18,696     22,866    72,083     75,660 Noninterest expense Compensation and employee  22,195    20,564     19,953    82,910     75,979 benefits Occupancy                  4,197     4,208      4,313     16,747     17,179 Data processing            2,970     2,168      2,854     10,952     10,098 Services                   2,160     2,424      2,800     9,015      9,866 Equipment                  1,826     1,825      1,806     7,295      7,105 Other expense              7,951     8,539      9,207     32,585     32,116 Total noninterest expense  41,299    39,728     40,933    159,504    152,343 Income before income       17,794    22,808     22,057    87,059     89,021 taxes Income taxes               5,610     7,532      7,694     29,525     30,384 Net income                 $ 12,184  $  15,276  $ 14,363  $ 57,534   $ 58,637 Comprehensive income       $ 23,802  $  14,107  $ 5,740   $ 60,733   $ 52,612 OTHER BANK INFORMATION (annualized %, except as of period end) Return on average assets   0.94      1.20       1.15      1.13       1.18 Return on average equity   9.56      12.13      11.29     11.38      11.68 Return on average          11.39     14.50      13.47     13.59      13.97 tangible common equity Net interest margin        3.67      3.73       3.81      3.74       3.93 Net charge-offs to         0.15      —          0.13      0.09       0.24 average loans outstanding As of period end Nonperforming assets to loans outstanding and      1.20      1.33       1.87 real estate owned * Allowance for loan losses  0.97      1.01       1.11 to loans outstanding Tier-1 leverage ratio *    9.1       9.3        9.1 Total risk-based capital   12.1      12.5       12.8 ratio * Tangible common equity to  8.5       8.36       8.39 total assets Dividend paid to HEI (via  10        10         15        40         45 ASHI) ($ 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, 2013 (when filed) and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013, as updated by SEC Forms 8-K.      American Savings Bank, F.S.B.  BALANCE SHEETS DATA  (Unaudited) December31                                 2013                   2012 (in thousands) Assets Cash and cash equivalents                   $ 156,603              $ 184,430 Available-for-sale investment               529,007                671,358 and mortgage-related securities Investment in stock of Federal              92,546                 96,022 Home Loan Bank of Seattle Loans receivable held for                   4,150,229              3,779,218 investment Allowance for loan losses                   (40,116)               (41,985) Loans receivable held for                   4,110,113              3,737,233 investment, net Loans held for sale, at lower of            5,302                  26,005 cost or fair value Other                                       268,063                244,435 Goodwill                                    82,190                 82,190 Total assets                                $ 5,243,824            $ 5,041,673 Liabilities and shareholder's equity Deposit                                     $ 1,214,418            $ 1,164,308 liabilities–noninterest-bearing Deposit                                     3,158,059              3,065,608 liabilities–interest-bearing Other borrowings                            244,514                195,926 Other                                       105,679                117,752 Total liabilities                           4,722,670              4,543,594 Common stock                                336,054                333,712 Retained earnings                           197,297                179,763 Accumulated other comprehensive loss, net of tax benefits  Net unrealized gains       $ (3,663)               $ 10,761 (losses) on securities  Retirement benefit plans   (8,534)    (12,197)     (26,157)  (15,396)  Total shareholder's equity              521,154                498,079  Total liabilities and                   $ 5,243,824            $ 5,041,673 shareholder's equity  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, 2013 (when filed) and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013, as updated by SEC Forms 8-K.    EXPLANATION OF HEI'S USE OF CERTAIN UNAUDITED NON-GAAP MEASURES  HEI and Hawaiian Electric Company management use certain non-GAAP measures to evaluate the performance of the utility and HEI. Management believes these non-GAAP measures provide useful information and are a better indicator of the companies' core operating activities. Core earnings and other financial measures as presented here may not be comparable to similarly titled measures used by other companies. The accompanying tables provide a reconciliation of reported GAAP^1 earnings to non-GAAP core earnings for both the utility and HEI consolidated and the corresponding adjusted return on average common equity (ROACE).  The reconciling adjustments from GAAP earnings to core earnings are limited to the settlement charge for the partial write-off of utility assets in 2012. For more information on the settlement charge recorded in 2012, see the Form 8-K filed on March 20, 2013. Management does not consider these items to be representative of the company's fundamental core earnings.  The accompanying table also provides the calculation of utility GAAP O&M adjusted for "O&M-related net income neutral items" which are O&M expenses covered by specific surcharges or by third parties. This item is grossed-up in revenue and expense and does not impact net income.  RECONCILIATION OF GAAP^1 TO NON-GAAP MEASURES Hawaiian Electric Industries, Inc. and Subsidiaries (HEI) Unaudited ($ in millions, except per share amounts)                                           Three months ended  Years ended                                           December 31         December 31                                           2013       2012     2013     2012 HEI CONSOLIDATED NET INCOME GAAP (as reported)                        $ 39.0     $ 13.8   $ 161.5  $ 138.7 Excluding special items (after-tax): Settlement agreement for the partial      -          24.4     -        24.4 writedown of certain utility assets Non-GAAP (core)                           $ 39.0     $ 38.3   $ 161.5  $ 163.1 HEI CONSOLIDATED DILUTED EARNINGS PER SHARE GAAP (as reported)                        $ 0.39     $ 0.14   $ 1.62   $ 1.42 Excluding special items (after-tax): Settlement agreement for the partial      -          0.25     -        0.25 writedown of certain utility assets Non-GAAP (core)                           $ 0.39     $ 0.39   $ 1.62   $ 1.68 HEI CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average) Based on GAAP                                                 9.7%     8.9% Based on non-GAAP (core)^2                                    9.7%     10.4%  Note: Columns may not foot due to rounding ^1 Accounting principles generally accepted in the United States of America ^2 Calculated as core net income divided by average GAAP common equity    RECONCILIATION OF GAAP TO NON-GAAP MEASURES Hawaiian Electric Company, Inc. and Subsidiaries Unaudited ($ in millions)                         Three months ended  Years ended                         December 31         December 31                         2013      2012      2013      2012 HAWAIIAN ELECTRIC CONSOLIDATED NET INCOME GAAP (as reported)      $  32.0  $       $ 122.9  $  99.3                                   4.2 Excluding special items (after-tax):  Settlement agreement for the       -         24.4      -         24.4 partial writedown of certain utility assets Non-GAAP (core)         $  32.0  $  28.7  $ 122.9  $ 123.7 HAWAIIAN ELECTRIC CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average) Based on GAAP                               8.0%      6.9% Based on non-GAAP                           8.0%      8.6% (core)^1                         Hawaiian Electric   Hawaii Electric     Maui Electric                                             Light Years ended December    2013      2012      2013      2012      2013    2012 31 NET INCOME GAAP (as reported)      $  81.5  $  70.4  $  20.1  $  16.2  $      $                                                                  21.3    12.6 Excluding special items (after-tax):  Settlement agreement for the       -         17.7      -         3.4       -       3.4 partial writedown of certain utility assets Non-GAAP (core)         $  81.5  $  88.2  $  20.1  $  19.6  $      $                                                                  21.3    16.0 RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average) Based on GAAP           8.0%      7.6%      7.4%      5.9%      8.9%    5.4% Based on non-GAAP       8.0%      9.5%      7.4%      7.1%      8.9%    6.9% (core)^1                         Three months ended          Years ended                         December 31                  December 31                         2013      2012      Change    2013      2012    Change HAWAIIAN ELECTRIC CONSOLIDATED OTHER OPERATION AND MAINTENANCE (O&M) EXPENSE GAAP (as reported)      $ 102.3  $ 107.4  $        $ 403.3  $       $                                               (5.1)              397.4  5.9  Excluding O&M-related net income  (2.9)     (1.5)     (1.4)     (8.0)     (5.6)   (2.4) neutral items^2 Adjusted other operation and           $  99.4  $ 105.9  $        $ 395.3  $       $   maintenance (Non-GAAP                       (6.5)              391.8  3.5 measure)  Note: Columns may not foot due to rounding ^ 1 Calculated as core net income divided by average GAAP common equity ^2    Expenses covered by surcharges or by third parties recorded in revenues  Contact: Shelee M.T. Kimura                          Telephone: (808) 543-7384          Manager, Investor Relations & Strategic     E-mail: skimura@hei.com          Planning  (Logo: http://photos.prnewswire.com/prnh/20110411/LA80136LOGO)  SOURCE Hawaiian Electric Industries, Inc.  Website: http://www.hei.com