American Savings Bank Reports First Quarter 2014 Earnings

          American Savings Bank Reports First Quarter 2014 Earnings

Net Income of $14.5 Million

Return on Assets of 1.10%

Bank Continues to Deliver Solid Results

PR Newswire

HONOLULU, April 30, 2014

HONOLULU, April 30, 2014 /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 2014 of $14.5 million, compared to $12.2 million in the fourth (or
linked) quarter of 2013 and $14.2 million in the first quarter of 2013. 

"American delivered another quarter of solid results, meeting the credit needs
of an expanding customer base while maintaining strong asset quality and
financial returns. Low interest rates and the effects of the more intense
regulatory environment continued to curb opportunities to improve
profitability, but the healthy Hawaiian economy helped us grow. The sale of
our municipal bond holdings accelerated some income into the first quarter as
we repositioned our investment portfolio due to recent interagency guidance on
liquidity standards and the likelihood of higher interest rates over time,"
said Rich Wacker, president and chief executive officer of American.

First quarter 2014 net income was $2.4 million higher than the linked quarter
primarily driven by (on an after-tax basis):

  o$2million gain on the sale of the municipal bond securities portfolio due
    to the strategic shift towards higher quality liquid assets; and
  o$2 million lower noninterest expense ($1 million of which is due to lower
    compensation and benefits expense).

These were partially offset by $1 million (after-tax) decrease in fee income,
including lower mortgage banking income associated with lower refinancing
volumes.

Compared to the same quarter of 2013, net income increased by $0.4 million
primarily driven by (on an after-tax basis):

  o$2 million gain on the sale of the municipal bond securities portfolio;
    and
  o$1 million lower provision for loan losses.

These were largely offset by (on an after-tax basis):

  o$2 million lower mortgage banking income from significantly lower
    refinancing activity as a result of higher interest rates; and
  o$1 million lower interchange fees under regulatory caps (Durbin Amendment)
    that became effective for American on July1,2013.

Net interest margin was 3.64% compared to 3.67% in the linked quarter and
3.78% in the first quarter of 2013. Compared to the prior year quarter, the
decline in net interest margin was largely attributable to lower yields on
interest earning assets as loans continued to re-price down in this low
interest rate environment, although at a slower pace.

Provision for loan losses (pretax) was $1.0 million in the first quarter of
2014, slightly higher than the $0.6 million in the linked quarter of 2013, but
lower than the provision of $1.9million in the first quarter of 2013. The
$0.9 million decline in the provision from the prior year quarter was largely
due to lower net charge-offs and improving credit trends in the first quarter
of 2014 compared to the prior year. The first quarter 2014 net charge-off
ratio improved to 0.02% from 0.15% in the linked quarter and 0.12% in the
prior year quarter due to improved credit quality of the loan portfolio.

Noninterest income (pretax) was $16.9 million in the first quarter of 2014,
compared to $15.5million in the linked quarter and $18.7 million in the first
quarter of 2013. Excluding the $2.8 million gain on the sale of the municipal
bond portfolio, non-interest income was $14.1 million and in line with
management expectations for lower mortgage banking income due to moderating
refinancing volumes, and lower year-over-year fee income due to the regulatory
limits on interchange fees (Durbin Amendment).

Noninterest expense (pretax) was $38.4 million in the first quarter of 2014,
lower than the $41.3million in the linked quarter and the $38.7 million in
the first quarter of 2013. Noninterest expense in the linked quarter was
elevated largely due to the timing of performance-related compensation costs
and higher marketing expenses.

Loan growth was 3.6% annualized in the first quarter of 2014 primarily driven
by increases in 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 $4.5 billion at March 31, 2014, up $106 million from
December31,2013, primarily due to the increase in low-cost core deposits.
Average cost of funds remained low at 0.23% for the first quarter of 2014,
consistent with the linked and prior year quarter.

American's return on average equity was 11.0% up from 9.6% in the linked
quarter and slightly lower than 11.3% in the first quarter of last year.
Return on average assets was 1.10% for the first quarter of 2014, compared to
0.94% from the linked quarter and 1.12% in the same quarter last year.
American's solid results enabled it to pay dividends of $8.75 million to HEI
in the quarter while maintaining healthy capital levels – leverage ratio of
9.0% and total risk-based capital ratio of 12.7% at March 31, 2014.

Note: Amounts indicated as "after-tax" in this earnings release are based upon
adjusting items for the composite statutory tax rate of 40% for the bank.

HEI EARNINGS RELEASE, HEI WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS AND
2014 EPS GUIDANCE

Concurrent with American's regulatory filing 30 days after the end of the
quarter, American announced its first quarter 2014 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 2014.

HEI plans to announce its first quarter 2014 consolidated financial results on
Wednesday, May7,2014 and will conduct a webcast and conference call to
discuss its consolidated earnings, including American's earnings, and 2014 EPS
guidance on Wednesday, May 7, 2014, at 7:00 am Hawaii time (1:00p.m. Eastern
time). Interested parties may listen to the conference by calling (866)
270-6057 and entering passcode: 47349847, or by accessing the webcast on
HEI's website at www.hei.com under the heading "Investor Relations." HEI and
Hawaiian Electric Company, Inc. (Hawaiian Electric) 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's and
American's press releases, HEI's and Hawaiian Electric'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'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/dms 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 Hawaiian Electric's SEC filings.

An online replay of the webcast will be available at the same website
beginning about two hours after the event. Audio replays of the conference
call will also be available approximately two hours after the event through
May 21, 2014, by dialing (888)286-8010, passcode: 24249299.

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, one of Hawaii's largest financial institutions.

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 Annual Report on Form
10-K for the year ended December 31, 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, 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.

STATEMENTS OF INCOME DATA

(Unaudited)
                                  Three months ended
(inthousands)                    March 31, 2014  December 31,  March 31, 2013
                                                  2013
Interest and dividend income
Interest and fees on loans        $   43,682      $  43,405     $   42,603
Interest and dividends on
investment and mortgage-related   3,035           3,372         3,464
securities
Total interest and dividend       46,717          46,777        46,067
income
Interest expense
Interest on deposit liabilities   1,225           1,222         1,312
Interest on other borrowings      1,405           1,437         1,164
Total interest expense            2,630           2,659         2,476
Net interest income               44,087          44,118        43,591
Provision for loan losses         995             554           1,858
Net interest income after         43,092          43,564        41,733
provision for loan losses
Noninterest income
Fees from other financial         5,128           5,732         7,643
services
Fee income on deposit             4,421           4,797         4,314
liabilities
Fee income on other financial     2,290           2,117         1,794
products
Mortgage banking income           628             1,413         3,346
Gains on sale of securities       2,847           —             —
Other income, net                 1,588           1,470         1,592
Total noninterest income          16,902          15,529        18,689
Noninterest expense
Compensation and employee         20,286          22,195        20,088
benefits
Occupancy                         3,953           4,197         4,123
Data processing                   3,060           2,970         2,987
Services                          2,273           2,160         2,103
Equipment                         1,645           1,826         1,774
Other expense                     7,153           7,951         7,595
Total noninterest expense         38,370          41,299        38,670
Income before income taxes        21,624          17,794        21,752
Income taxes                      7,085           5,610         7,597
Net income                        $   14,539      $  12,184     $   14,155
Comprehensive income              $   15,563      $  23,802     $   15,484
OTHER BANK INFORMATION (annualized %, except as
of period end)
Return on average assets          1.10            0.94          1.12
Return on average equity          11.03           9.56          11.28
Return on average tangible        13.06           11.39         13.49
common equity
Net interest margin               3.64            3.67          3.78
Net charge-offs to average loans  0.02            0.15          0.12
outstanding
As of period end
Nonperforming assets to loans
outstanding and real estate       1.12            1.20          1.89
owned *
Allowance for loan losses to      0.98            0.97          1.11
loans outstanding
Tier-1 leverage ratio *           9.0             9.1           9.1
Total risk-based capital ratio *  12.7            12.1          12.8
Tangible common equity to total   8.44            8.50          8.38
assets
Dividend paid to HEI (through
ASHI) (for the periods            $   9           $  10         $   10
presented, 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 and HEI's Quarterly Report on SEC Form 10-Q
for the quarter ended March 31, 2014 (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.

BALANCE SHEETS DATA

(Unaudited)
(inthousands)                   March 31, 2014            December 31, 2013
Assets
Cash and cash equivalents                    $ 211,083                 $ 156,603
Securities purchased under                   40,000                    —
resale agreements
Available-for-sale investment                517,534                   529,007
and mortgage-related securities
Investment in stock of Federal               86,697                    92,546
Home Loan Bank of Seattle
Loans receivable held for                    4,188,460                 4,150,229
investment
Allowance for loan losses                    (40,923)                  (40,116)
Loans receivable held for                    4,147,537                 4,110,113
investment, net
Loans held for sale, at lower                4,363                     5,302
of cost or fair value
Other                                        282,079                   268,063
Goodwill                                     82,190                    82,190
Total assets                                 $ 5,371,483               $ 5,243,824
Liabilities and shareholder's
equity
Deposit                                      $ 1,284,957               $ 1,214,418
liabilities—noninterest-bearing
Deposit                                      3,193,030                 3,158,059
liabilities—interest-bearing
Other borrowings                             244,642                   244,514
Other                                        120,324                   105,679
Total liabilities                            4,842,953                 4,722,670
Common stock                                 336,617                   336,054
Retained earnings                            203,086                   197,297
Accumulated other comprehensive
loss, net of tax benefits
Net unrealized losses on         $ (2,858)                 $ (3,663)
securities
Retirement benefit plans         (8,315)     (11,173)      (8,534)     (12,197)
Total shareholder's equity                   528,530                   521,154
Total liabilities and                        $ 5,371,483               $ 5,243,824
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 and HEI's Quarterly Report on SEC Form 10-Q
for the quarter ended March 31, 2014 (when filed), as updated by SEC Forms
8-K.

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

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SOURCE Hawaiian Electric Industries, Inc.

Website: http://www.hei.com
 
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