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.