Hawaiian Electric Industries Reports First Quarter 2014 Earnings

       Hawaiian Electric Industries Reports First Quarter 2014 Earnings  Diluted Earnings Per Share of $0.45  Hawaiian Electric Company Continues to Integrate Clean Energy Resources  American Savings Bank Continues to Deliver Solid Results  Board Declares Dividend of $0.31 Per Share  PR Newswire  HONOLULU, May 7, 2014  HONOLULU, May 7, 2014 /PRNewswire/ --Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported consolidated net income for common stock for the first quarter of 2014 of $45.9 million, or $0.45diluted earnings per share (EPS), compared to $33.7 million, or $0.34 diluted EPS for the first quarter of 2013. Yesterday, the HEI board of directors declared a dividend of $0.31 per share, continuing its 113-year history of paying continuous dividends.  "We are off to a solid start in 2014 with first quarter financial results aligned with our full year expectations. We're proud of our leadership in the nation's clean energy transformation, including integrating higher percentages of renewable and distributed generation than states across the nation. The policy guidance recently received from the Hawaii Public Utilities Commission will allow us to continue our work with more clarity as we invest in the modernization of our grid to integrate even more low-cost renewable generation in the future," said Constance H. Lau, HEI president and chief executive officer.  "American Savings Bank continued to deliver solid results despite the ongoing low interest rate and challenging regulatory environment. The bank had annualized loan growth of 3.6% this quarter, while maintaining strong asset quality and financial returns. American's solid results enabled it to pay dividends of $8.75million to HEI in the quarter while maintaining healthy capital levels," added Lau.  HAWAIIAN ELECTRIC COMPANY CONTINUES INVESTMENTS FOR IMPROVED RELIABILITY TO BETTER SERVE OUR CUSTOMERS  Hawaiian Electric Company's^1 net income for the first quarter of 2014 was $35.4million compared  to $24.4 million in the first quarter of 2013. The $11.0 million increase from the prior year was driven by the following items (on an after-tax basis):    o$8 million lower operations and maintenance (O&M) expenses^2 compared to     the same quarter last year primarily due to the timing of overhauls, lower     production expenses and lower customer service expenses which were     elevated in the prior year quarter during the stabilization period for the     new customer information system; and   o$6 million higher net revenues^3 compared to the first quarter of 2013     primarily due to $8million for the estimated recovery of costs for     reliability and clean energy investments partially offset by $1 million     due to reduced fuel efficiency performance of the generation units on Oahu     which were run at lower levels compared to 2013 in part to integrate more     renewable energy.  These were partially offset by (after-tax):    o$2 million higher depreciation expense resulting from additional     infrastructure investments for improved reliability; and   o$1 million higher interest expense.      Hawaiian Electric Company, unless otherwise defined, refers to the three ^1  utilities, Hawaiian Electric Company, Inc. on Oahu, Maui Electric Company,     Limited, and Hawaii Electric Light Company, Inc.     Excludes net income neutral expenses covered by surcharges or by third ^2  parties of $2 million in both the first quarter of 2014 and 2013. See     "Explanation of HEI's Use of Certain Unaudited Non-GAAP measures" and the     related reconciliation.     Net revenues represent the after-tax impact of "Revenues" less the ^3  following expenses which are largely pass through items in revenues: "fuel     oil", "purchased power" and "taxes, other than income taxes" as shown on     the Hawaiian Electric Company Consolidated Statements of Income. 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.  AMERICAN SAVINGS BANK CONTINUES TO DELIVER SOLID PERFORMANCE  American Savings Bank's (American) net income for the first quarter of 2014 was $14.5million compared to $12.2 million in the fourth (or linked) quarter of 2013 and $14.2million in the first quarter of 2013.  First quarter 2014 net income was $2.4 million higher than the linked quarter primarily driven by a $2 million (after-tax) gain on the sale of the municipal bond securities portfolio due to the strategic shift towards higher quality liquid assets and $2 million (after-tax) lower noninterest expenses ($1 million of which is due to lower compensation and benefits expense), partially offset by $1 million (after-tax) decrease in fee income, including lower mortgage banking income associated with lower refinancing volumes.  Compared to the first quarter of 2013, net income increased by$0.4million. The increase was primarily driven by the $2 million (after-tax) gain on the sale of the municipal bond securities portfolio and lower provision for loan losses. These were largely offset by lower mortgage banking income from significantly lower refinancing activity and lower interchange fees due to the Durbin Amendment which placed a limit on interchange fees and became effective on July 1, 2013 for American.  Overall, American achieved solid profitability in the first quarter of 2014 with a return on average equity of 11.0% and a return on average assets of 1.10%.  Also, refer to the American news release issued on April 30, 2014.  HOLDING AND OTHER COMPANIES  The holding and other companies' net losses were $4.0million in the first quarter of 2014, down from $4.9 million in the first quarter of 2013. The lower net losses were due to lower interest expense and higher tax benefits.  BOARD DECLARES QUARTERLY DIVIDEND  On May 6, 2014, the board of directors maintained HEI's quarterly cash dividend of $0.31 cents per share, payable on June 10, 2014, to shareholders of record at the close of business on May 22, 2014 (ex-dividend date is May 20, 2014). The dividend is equivalent to an annual rate of $1.24 per share.  Dividends have been paid continuously since 1901. At the indicated annual dividend rate and the closing share price on May 6, 2014 of $23.22, HEI's yield is 5.3%.  HEI WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS AND EPS GUIDANCE  Hawaiian Electric Industries, Inc. will conduct a webcast and conference call to review its first quarter 2014 earnings and 2014 earnings per share (EPS) guidance on Wednesday, May7, 2014 at 7:00 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)270-6057, passcode: 47349847 for the teleconference call. The presentation for the webcast will be on HEI's website 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. 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 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/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 Company's SEC filings.  An on-line replay of the webcast will be available on HEI's website beginning about two hours after the event. Audio replays of the teleconference 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 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 14 to 15 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 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 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.  Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three months ended March 31                           2014         2013 (inthousands,exceptpershareamounts) Revenues Electric utility                                      $  720,062   $  717,441 Bank                                                  63,619       64,756 Other                                                 68           35 Total revenues                                        783,749      782,232 Expenses Electric utility                                      649,396      666,320 Bank                                                  41,996       43,005 Other                                                 4,051        4,082 Total expenses                                        695,443      713,407 Operating income (loss) Electric utility                                      70,666       51,121 Bank                                                  21,623       21,751 Other                                                 (3,983)      (4,047) Total operating income                                88,306       68,825 Interest expense, net—other than on deposit           (19,456)     (18,731) liabilities and other bank borrowings Allowance for borrowed funds used during              614          730 construction Allowance for equity funds used during construction   1,609        1,215 Income before income taxes                            71,073       52,039 Income taxes                                          24,673       17,887 Net income                                            46,400       34,152 Preferred stock dividends of subsidiaries             473          473 Net income for common stock                           $  45,927    $  33,679 Basic earnings per common share                       $  0.45      $  0.34 Diluted earnings per common share                     $  0.45      $  0.34 Dividends per common share                            $  0.31      $  0.31 Weighted-average number of common shares outstanding  101,382      98,135 Adjusted weighted-average shares                      102,165      98,540 Net income (loss) for common stock by segment Electric utility                                      $  35,420    $  24,429 Bank                                                  14,539       14,155 Other                                                 (4,032)      (4,905) Net income for common stock                           $  45,927    $  33,679 Comprehensive income attributable to Hawaiian         $  47,094    $  33,618 Electric Industries, Inc. Return on average common equity (twelve months        10.4%        8.5% ended)^1  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.                                                         On a core basis, 2014                                                         and 2013 return on                                                         average common equity                                                         (twelve months ended ^1                                                      March 31) were 10.4%                                                         and 10.0%,                                                         respectively. See                                                         reconciliation of GAAP                                                         to non-GAAP measures.    Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED BALANCE SHEETS (Unaudited) (dollarsinthousands)  March 31, 2014                  December 31, 2013 Assets Cash and cash                            $  269,120                       $  220,036 equivalents Accounts receivable and unbilled revenues,                   324,433                          346,785 net Available-for-sale investment and                           517,534                          529,007 mortgage-related securities Investment in stock of Federal Home Loan Bank                   86,697                           92,546 of Seattle Loans receivable held                    4,147,537                        4,110,113 for investment, net Loans held for sale, at lower of cost or                      4,363                            5,302 fair value Property, plant and equipment, net of accumulated depreciation of                          3,908,392                        3,865,514 $2,206,650 and $2,192,422 at the respective dates Regulatory assets                        579,963                          575,924 Other                                    537,841                          512,627 Goodwill                                 82,190                           82,190 Total assets                             $  10,458,070                    $  10,340,044 Liabilities and shareholders' equity Liabilities Accounts payable                         $  210,511                       $  212,331 Interest and dividends                   28,520                           26,716 payable Deposit liabilities                      4,477,987                        4,372,477 Short-term borrowings—other than                    136,369                          105,482 bank Other bank borrowings                    244,642                          244,514 Long-term debt,                          1,492,945                        1,492,945 net—other than bank Deferred income taxes                    538,321                          529,260 Regulatory liabilities                   350,916                          349,299 Contributions in aid                     438,020                          432,894 of construction Defined benefit pension and other                        284,043                          288,539 postretirement benefit plans liability Other                                    475,575                          524,224 Total liabilities                        8,677,849                        8,578,681 Preferred stock of subsidiaries - not                       34,293                           34,293 subject to 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                               1,491,338                        1,488,126 outstanding: 101,477,616 shares and 101,259,800 shares at the respective dates Retained earnings                        270,173                          255,694 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses   $      (2,858)                   $      (3,663) on securities Unrealized losses on    (466)                            (525) derivatives Retirement benefit      (12,259)         (15,583)        (12,562)         (16,750) plans Total shareholders'                      1,745,928                        1,727,070 equity Total liabilities and                    $  10,458,070                    $  10,340,044 shareholders' 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.    Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three months ended March 31                           2014         2013 (inthousands) Cash flows from operating activities Net income                                            $  46,400    $  34,152 Adjustments to reconcile net income to net cash provided by operating activities Depreciation of property, plant and equipment         43,181       39,726 Other amortization                                    1,609        935 Provision for loan losses                             995          1,858 Loans receivable originated and purchased, held for   (46,998)     (79,224) sale Proceeds from sale of loans receivable, held for      48,720       102,254 sale Increase in deferred income taxes                     6,298        19,967 Excess tax benefits from share-based payment          (164)        (414) arrangements Allowance for equity funds used during construction   (1,609)      (1,215) Change in cash overdraft                              (1,038)      — Changes in assets and liabilities Decrease in accounts receivable and unbilled          22,352       14,335 revenues, net Increase in fuel oil stock                            (34,260)     (29,272) Increase in regulatory assets                         (9,258)      (17,746) Increase (decrease) in accounts, interest and         (9,307)      38,148 dividends payable Change in prepaid and accrued income taxes and        (19,474)     (50,933) utility revenue taxes Decrease in defined benefit pension and other         (818)        (702) postretirement benefit plans liability Change in other assets and liabilities                (27,208)     (23,550) Net cash provided by operating activities             19,421       48,319 Cash flows from investing activities Available-for-sale investment and mortgage-related    (79,912)     (26,705) securities purchased Principal repayments on available-for-sale            15,597       36,504 investment and mortgage-related securities Proceeds from sale of available-for-sale investment   79,564       — securities Net increase in loans held for investment             (37,887)     (66,934) Proceeds from sale of real estate acquired in         1,429        3,046 settlement of loans Capital expenditures                                  (65,829)     (71,041) Contributions in aid of construction                  6,958        11,710 Other                                                 5,848        869 Net cash used in investing activities                 (74,232)     (112,551) Cash flows from financing activities Net increase in deposit liabilities                   105,510      82,704 Net increase in short-term borrowings with original   30,887       50,244 maturities of three months or less Net increase (decrease) in retail repurchase          141          (2,680) agreements Proceeds from issuance of long-term debt              —            50,000 Repayment of long-term debt                           —            (50,000) Excess tax benefits from share-based payment          164          414 arrangements Net proceeds from issuance of common stock            3,054        4,703 Common stock dividends                                (31,435)     (24,394) Preferred stock dividends of subsidiaries             (473)        (473) Other                                                 (3,953)      (3,240) Net cash provided by financing activities             103,895      107,278 Net increase in cash and cash equivalents             49,084       43,046 Cash and cash equivalents, beginning of period        220,036      219,662 Cash and cash equivalents, end of period              $  269,120   $  262,708  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, 2013 (when filed), as updated by SEC Forms 8-K. Cash flows for interim periods are not necessarily indicative of cash flows to be expected for future interim periods or the full year.    Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three months ended March 31                       2014             2013 (dollars inthousands, except per barrel amounts) Revenues                                          $      720,062   $  717,441 Expenses Fuel oil                                          286,300          305,100 Purchased power                                   164,916          153,364 Other operation and maintenance                   88,606           101,813 Depreciation                                      41,603           38,280 Taxes, other than income taxes                    67,971           67,763 Total expenses                                    649,396          666,320 Operating income                                  70,666           51,121 Allowance for equity funds used during            1,609            1,215 construction Interest expense and other charges, net           (15,723)         (14,519) Allowance for borrowed funds used during          614              730 construction Income before income taxes                        57,166           38,547 Income taxes                                      21,247           13,619 Net income                                        35,919           24,928 Preferred stock dividends of subsidiaries         229              229 Net income attributable to Hawaiian Electric      35,690           24,699 Preferred stock dividends of Hawaiian Electric    270              270 Net income for common stock                       $      35,420    $  24,429 Comprehensive income attributable to Hawaiian     $      35,429    $  24,447 Electric OTHER ELECTRIC UTILITY INFORMATION Kilowatthour sales (millions) Hawaiian Electric                                 1,595            1,591 Hawaii Electric Light                             260              263 Maui Electric                                     271              269                                                   2,126            2,123 Wet-bulb temperature (Oahu average; degrees       67.1             66.0 Fahrenheit) Cooling degree days (Oahu)                        828              789 Average fuel oil cost per barrel                  $      131.15    $  130.83 Twelve months ended March 31                      2014             2013 Return on average common equity (%) (simple average)^1 Hawaiian Electric                                 9.21             6.97 Hawaii Electric Light                             7.64             5.07 Maui Electric                                     7.68             7.41 Hawaiian Electric Consolidated                    8.69             6.68  This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in Hawaiian Electric's Annual Report on SEC Form 10-K for the year ended December 31, 2013 and the consolidated financial statements and the notes thereto in Hawaiian Electric'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.                  On a core basis, the 2014 and 2013 return on average common                 equity (twelve months ended March 31) were 9.2% and 8.9%,                 respectively for Hawaiian Electric; 7.6% and 6.3%, ^1              respectively for Hawaii Electric Light; 7.7% and 8.8%,                 respectively for Maui Electric and 8.7% and 8.4% respectively,                 for Hawaiian Electric Consolidated. See reconciliation of GAAP                 to non-GAAP measures.    Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries CONSOLIDATED BALANCE SHEETS (Unaudited)                                                   March 31,      December 31, ($ in thousands, except par value)                2014           2013 Assets Property, plant and equipment Utility property, plant and equipment Land                                              $  51,845      $  51,883 Plant and equipment                               5,762,899      5,701,875 Less accumulated depreciation                     (2,134,460)    (2,111,229) Construction in progress                          148,602        143,233 Utility property, plant and equipment, net        3,828,886      3,785,762 Nonutility property, plant and equipment, less accumulated depreciation of $1,224 and $1,223 at  6,566          6,567 respective dates Total property, plant and equipment, net          3,835,452      3,792,329 Current assets Cash and cash equivalents                         17,359         62,825 Customer accounts receivable, net                 164,016        175,448 Accrued unbilled revenues, net                    131,864        144,124 Other accounts receivable, net                    16,690         14,062 Fuel oil stock, at average cost                   168,347        134,087 Materials and supplies, at average cost           60,089         59,044 Prepayments and other                             32,299         52,857 Regulatory assets                                 77,455         69,738 Total current assets                              668,119        712,185 Other long-term assets Regulatory assets                                 502,508        506,186 Unamortized debt expense                          9,124          9,003 Other                                             67,386         67,426 Total other long-term assets                      579,018        582,615  Total assets                                   $  5,082,589   $  5,087,129 Capitalization and liabilities Capitalization Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 15,429,105         $  102,880     $  102,880 shares) Premium on capital stock                          541,449        541,452 Retained earnings                                 961,337        948,624 Accumulated other comprehensive income, net of    617            608 income taxes-retirement benefit plans Common stock equity                               1,606,283      1,593,564 Cumulative preferred stock — not subject to       34,293         34,293 mandatory redemption Long-term debt, net                               1,206,545      1,206,545 Total capitalization                              2,847,121      2,834,402 Current liabilities Current portion of long-term debt                 11,400         11,400 Short-term borrowings from non-affiliates         34,996         — Accounts payable                                  182,826        189,559 Interest and preferred dividends payable          24,100         21,652 Taxes accrued                                     193,734        249,445 Regulatory liabilities                            1,437          1,916 Other                                             62,476         63,881 Total current liabilities                         510,969        537,853 Deferred credits and other liabilities Deferred income taxes                             515,041        507,161 Regulatory liabilities                            349,479        347,383 Unamortized tax credits                           75,544         73,539 Defined benefit pension and other postretirement  257,601        262,162 benefit plans liability Other                                             88,814         91,735 Total deferred credits and other liabilities      1,286,479      1,281,980 Contributions in aid of construction              438,020        432,894 Total capitalization and liabilities              $  5,082,589   $  5,087,129  This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in Hawaiian Electric's Annual Report on SEC Form 10-K for the year ended December 31, 2013 and the consolidated financial statements and the notes thereto in Hawaiian Electric's Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2014 (when filed), as updated by SEC Forms 8-K.    Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three months ended March 31,                            2014        2013 (inthousands) Cash flows from operating activities Net income                                              $  35,919   $  24,928 Adjustments to reconcile net income to net cash provided by operating activities Depreciation of property, plant and equipment           41,603      38,280 Other amortization                                      1,621       957 Increase in deferred income taxes                       20,344      17,975 Change in tax credits, net                              2,032       1,382 Allowance for equity funds used during construction     (1,609)     (1,215) Change in cash overdraft                                (1,038)     — Changes in assets and liabilities Decrease in accounts receivable                         8,804       38,703 Decrease (increase) in accrued unbilled revenues        12,260      (1,317) Increase in fuel oil stock                              (34,260)    (29,272) Increase in materials and supplies                      (1,045)     (3,345) Increase in regulatory assets                           (9,258)     (17,746) Increase (decrease) in accounts payable                 (16,024)    38,934 Change in prepaid and accrued income taxes and utility  (47,526)    (53,666) revenue taxes Decrease in defined benefit pension and other           (205)       (47) postretirement benefit plans liability Change in other assets and liabilities                  (10,981)    (1,050) Net cash provided by operating activities               637         53,501 Cash flows from investing activities Capital expenditures                                    (64,462)    (67,915) Contributions in aid of construction                    6,958       11,710 Net cash used in investing activities                   (57,504)    (56,205) Cash flows from financing activities Common stock dividends                                  (22,707)    (20,070) Preferred stock dividends of Hawaiian Electric and      (499)       (499) subsidiaries Net increase in short-term borrowings from non-affiliates and affiliate with original maturities   34,996      43,052 of three months or less Other                                                   (389)       2 Net cash provided by financing activities               11,401      22,485 Net increase (decrease) in cash and cash equivalents    (45,466)    19,781 Cash and cash equivalents, beginning of period          62,825      17,159 Cash and cash equivalents, end of period                $  17,359   $  36,940  This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in Hawaiian Electric's Annual Report on SEC Form 10-K for the year ended December 31, 2013 and the consolidated financial statements and the notes thereto in Hawaiian Electric's Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2014 (when filed), as updated by SEC Forms 8-K. Cash flows for interim periods are not necessarily indicative of cash flows to be expected for future interim periods or the full year.    American Savings Bank, F.S.B. STATEMENTS OF INCOME DATA (Unaudited)                               Three months ended (in thousands)                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                3,035               3,372         3,464 mortgage-related securities Total interest and dividend   46,717              46,777        46,067 income Interest expense Interest on deposit           1,225               1,222         1,312 liabilities 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           2,290               2,117         1,794 financial 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    0.02                0.15          0.12 loans outstanding As of period end Nonperforming assets to loans outstanding and real    1.12                1.20          1.89 estate 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      12.7                12.1          12.8 ratio * Tangible common equity to     8.44                8.50          8.38 total assets Dividend paid to HEI (through ASHI) (for the      $          9        $    10       $     10 periods 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 (including $40 million of securities purchased under                        $  251,083                      $  156,603 resale agreements at March 31, 2014) 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.    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 the fourth quarter of 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) Twelve months ended March 31,                              2014      2013 HEI CONSOLIDATED NET INCOME GAAP (as reported)                                         $  173.8  $  134.0 Excluding special items (after-tax): Settlement agreement for the partial writedown of certain  —         24.4 utility assets Non-GAAP (core)                                            $  173.8  $  158.5 HEI CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average) Based on GAAP                                              10.4%     8.5% Based on non-GAAP (core)^2                                 10.4%     10.0%  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^1 TO NON-GAAP MEASURES Hawaiian Electric Company, Inc. and Subsidiaries Unaudited ($ in millions) Twelve months ended March 31,                                  2014    2013 HAWAIIAN ELECTRIC CONSOLIDATED NET INCOME GAAP (as reported)                                             $ 133.9 $ 96.4 Excluding special items (after-tax):  Settlement agreement for the partial writedown of certain   —       24.4 utility assets Non-GAAP (core)                                                $ 133.9 $ 120.8 HAWAIIAN ELECTRIC CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average): Based on GAAP                                                  8.7%    6.7% Based on non-GAAP (core)^2                                     8.7%    8.4%                      Hawaiian Electric  Hawaii Electric Light  Maui Electric Twelve months ended  2014     2013      2014       2013        2014    2013 March 31, NET INCOME GAAP (as reported)   $  94.6  $  65.1   $   20.9   $   14.0    $ 18.5  $ 17.3 Excluding special items (after-tax):  Settlement agreement for the partial writedown of —        17.7      —          3.4         —       3.4 certain utility assets Non-GAAP (core)      $  94.6  $  82.8   $   20.9   $   17.4    $ 18.5  $ 20.7 RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average): Based on GAAP        9.2 %    7.0 %     7.6 %      5.1%        7.7 %   7.4 % Based on non-GAAP    9.2 %    8.9 %     7.6 %      6.3%        7.7 %   8.8 % (core)^2 Three months ended March 31,                                   2014    2013 HAWAIIAN ELECTRIC CONSOLIDATED OTHER OPERATION AND MAINTENANCE (O&M) EXPENSE GAAP (as reported)                                             $ 88.6  $101.8  Excluding O&M-related net income neutral items^3            (2.0)   (1.6) Adjusted O&M expense (Non-GAAP measure)                        $ 86.6  $ 100.2    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 ^3 Expenses covered by surcharges or by third parties recorded in revenues    Contact: Shelee M.T. Kimura          Manager, Investor Relations & Telephone: (808) 543-7384          Strategic Planning            E-mail: skimura@hei.com    Logo - http://photos.prnewswire.com/prnh/20110411/LA80136LOGO  SOURCE Hawaiian Electric Industries, Inc.  Website: http://www.hei.com  
Press spacebar to pause and continue. Press esc to stop.