Hawaiian Electric Industries Reports Second Quarter 2014 Earnings

      Hawaiian Electric Industries Reports Second Quarter 2014 Earnings

Consolidated Earnings Per Share of $0.41

Utility and Bank Deliver Results In Line with Expectations

PR Newswire

HONOLULU, Aug. 11, 2014

HONOLULU, Aug. 11, 2014 /PRNewswire/ -- Hawaiian Electric Industries, Inc.
(NYSE - HE) (HEI) today reported consolidated net income for common stock for
the second quarter of 2014 of $41.4 million, or $0.41 diluted earnings per
share (EPS), compared to $40.6 million, or $0.41 diluted EPS for the second
quarter of 2013.

"HEI's financial results were in line with internal expectations. Our
utilities are aggressively managing costs and redirecting savings to
accelerate investments for the benefit of our customers. We are making
investments to improve reliability, increase the amount of renewables and pave
the way for expected lower costs for customers," said Constance H. Lau, HEI
president and chief executive officer.

"American Savings Bank continued to deliver solid results with year-to-date
annualized loan growth of 6.5% which helped offset the impact of the continued
low interest rate environment. American paid dividends of $9.75million to
HEI in the quarter while maintaining strong 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 second quarter of 2014 was
$34.2million comparedto $28.7 million in the second quarter of 2013. The
$5.5 million increase from the prior year was driven by the following items
(on an after-tax basis):

  oNet revenues^2 were $11 million higher compared to the second quarter of
    2013 primarily due to $8 million in 2014 revenues attributable to the
    recovery of costs for clean energy and reliability investments and a $4
    million refund to customers recorded in the second quarter 2013 resulting
    from the final Maui County 2012 rate case decision.

These increases were partially offset by the following (on an after-tax
basis):

  oOperations and maintenance (O&M) expenses^3 were $2 million higher in the
    second quarter of 2014 compared to the same quarter last year. This is
    largely due to expenses related to installing smart grid technologies as
    part of our grid modernization program and reversals in the second quarter
    of 2013 of previously expensed costs, partially offset by savings from the
    deactivation of generating units;
  oDepreciation expense for the second quarter of 2014 was $2 million higher
    as a result of increasing investments for integration of more renewable
    energy, improved customer reliability and greater system efficiency; and
  oInterest expense was $1 million higher in the second quarter of 2014 due
    to new debt issued in the fourth quarter of 2013 to fund our clean energy
    and reliability investments.

^1 Hawaiian Electric Company, unless otherwise defined, refers to the three
utilities, Hawaiian Electric Company, Inc. on Oahu, Maui Electric Company,
Limited, and Hawaii Electric Light Company, Inc.

^2 Net revenues represent the after-tax impact of "Revenues" less the
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.

^3 Excludes net income neutral expenses covered by surcharges or by third
parties of $3 million in the second quarter of 2014 and $2 million in the
second quarter of 2013. See "Explanation of HEI's Use of Certain Unaudited
Non-GAAP measures" and the related reconciliation.

Note: Amounts indicated as "after-tax" in this earnings release are based upon
adjusting items for the composite statutory tax rates of 39% for the utilities
and 40% for the bank.

AMERICAN SAVINGS BANK CONTINUES TO DELIVER SOLID PERFORMANCE

American Savings Bank's (American) net income for the second quarter of 2014
was $11.7million compared to $14.5 million in the first, or linked, quarter
of 2014 and $15.9 million in the second quarter of 2013.

Second quarter 2014 net income was $2.9 million lower than the linked quarter
primarily driven by (on an after-tax basis) a first quarter $2 million gain on
the sale of the municipal bond securities portfolio and a $1 million increase
in noninterest expense due to higher branch security expense, product
development expenses and the timing of expenses associated with debit cards.

Compared to the second quarter of 2013, net income decreased by$4.2million.
The decrease was primarily driven by (on an after-tax basis): $1 million
lower interchange fees due to the Durbin Amendment which placed a limit on
interchange fees and became effective on July1,2013; $1million decrease in
mortgage banking income; $1 million lower gain on sale of securities; and $1
million higher provision for loan losses.

Overall, American achieved solid profitability with a year-to-date annualized
return on average equity of 9.9% and a return on average assets of 0.98%.

Please also refer to the American news release issued on July 30, 2014.

HOLDING AND OTHER COMPANIES

The holding and other companies' net losses were $4.5million in the second
quarter of 2013 compared to $4.0 million in the second quarter of 2013. The
higher net loss was due to higher administrative and general expenses
partially offset by lower interest expense.

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 second quarter 2014 earnings and 2014 EPS guidance on Monday,
August11, 2014 at 7:00a.m. Hawaii time (1:00 p.m. Eastern time). The event
can be accessed through HEI's website at www.hei.comor by dialing (877)
474-9504, passcode:92297255 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 August 25,
2014, by dialing (888)286-8010, passcode:58411343.

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 December31,2013, HEI's Quarterly Report on Form 10-Q
for the quarter ended March 31, 2014 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    Six months ended
                                         June 30               June 30
(inthousands,exceptpershareamounts) 2014       2013       2014         2013
Revenues
Electric utility                         $ 738,429  $ 728,525  $ 1,458,491  $ 1,445,966
Bank                                     60,616     66,027     124,235      130,783
Other                                    (388)      15         (320)        50
Total revenues                           798,657    794,567    1,582,406    1,576,799
Expenses
Electric utility                         668,361    669,550    1,317,757    1,335,870
Bank                                     43,568     41,322     85,564       84,327
Other                                    4,453      3,488      8,504        7,570
Total expenses                           716,382    714,360    1,411,825    1,427,767
Operating income (loss)
Electric utility                         70,068     58,975     140,734      110,096
Bank                                     17,048     24,705     38,671       46,456
Other                                    (4,841)    (3,473)    (8,824)      (7,520)
Total operating income                   82,275     80,207     170,581      149,032
Interest expense, net—other than on
deposit liabilities and other bank       (20,022)   (18,442)   (39,478)     (37,173)
borrowings
Allowance for borrowed funds used during 523        398        1,137        1,128
construction
Allowance for equity funds used during   1,387      1,560      2,996        2,775
construction
Income before income taxes               64,163     63,723     135,236      115,762
Income taxes                             22,269     22,662     46,942       40,549
Net income                               41,894     41,061     88,294       75,213
Preferred stock dividends of             473        473        946          946
subsidiaries
Net income for common stock              $ 41,421   $ 40,588   $ 87,348     $ 74,267
Basic earnings per common share          $ 0.41     $ 0.41     $ 0.86       $ 0.75
Diluted earnings per common share        $ 0.41     $ 0.41     $ 0.86       $ 0.75
Dividends per common share               $ 0.31     $ 0.31     $ 0.62       $ 0.62
Weighted-average number of common shares 101,495    98,660     101,439      98,399
outstanding
Adjusted weighted-average shares         101,825    99,249     102,045      98,961
Net income (loss) for common stock by
segment
Electric utility                         $ 34,230   $ 28,693   $ 69,650     $ 53,122
Bank                                     11,676     15,919     26,215       30,074
Other                                    (4,485)    (4,024)    (8,517)      (8,929)
Net income for common stock              $ 41,421   $ 40,588   $ 87,348     $ 74,267
Comprehensive income attributable to     $ 44,321   $ 32,283   $ 91,415     $ 65,901
Hawaiian Electric Industries, Inc.
Return on average common equity (twelve                        10.3%        8.5%
months 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 Reports on SEC Form 10-Q
for the quarters ended March 31, 2014 and June 30, 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.

^1 On a core basis, 2014 and 2013 return on average common equity (twelve
months ended June 30) were 10.3% and 10.0%, respectively. See reconciliation
of GAAP to non-GAAP measures.

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(dollarsinthousands)                      June 30, 2014  December 31, 2013
Assets
Cash and cash equivalents                   $  188,377     $    220,036
Accounts receivable and unbilled revenues,  349,771        346,785
net
Available-for-sale investment and           549,321        529,007
mortgage-related securities
Investment in stock of Federal Home Loan    80,863         92,546
Bank of Seattle
Loans receivable held for investment, net   4,245,240      4,110,113
Loans held for sale, at lower of cost or    956            5,302
fair value
Property, plant and equipment, net of
accumulated depreciation of $2,224,728 and  3,980,096      3,865,514
$2,192,422 at the respective dates
Regulatory assets                           582,645        575,924
Other                                       557,684        512,627
Goodwill                                    82,190         82,190
Total assets                                $  10,617,143  $    10,340,044
Liabilities and shareholders' equity
Liabilities
Accounts payable                            $  176,379     $    212,331
Interest and dividends payable              25,315         26,716
Deposit liabilities                         4,524,860      4,372,477
Short-term borrowings—other than bank       185,175        105,482
Other bank borrowings                       242,455        244,514
Long-term debt, net—other than bank         1,517,945      1,492,945
Deferred income taxes                       579,222        529,260
Regulatory liabilities                      354,980        349,299
Contributions in aid of construction        442,379        432,894
Defined benefit pension and other           278,427        288,539
postretirement benefit plans liability
Other                                       494,834        524,224
Total liabilities                           8,821,971      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 outstanding: 1,493,436      1,488,126
101,560,176 shares and 101,259,800 shares
at the respective dates
Retained earnings                           280,126        255,694
Accumulated other comprehensive loss, net   (12,683)       (16,750)
of tax benefits
Total shareholders' equity                  1,760,879      1,727,070
Total liabilities and shareholders' equity  $  10,617,143  $    10,340,044

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 Reports on SEC Form 10-Q
for the quarters ended March 31, 2014 and June 30, 2014 (when filed), as
updated by SEC Forms 8-K.

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended June 30                               2014       2013
(inthousands)
Cash flows from operating activities
Net income                                             $ 88,294   $ 75,213
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation of property, plant and equipment          86,397     79,843
Other amortization                                     4,014      2,868
Provision for loan losses                              2,016      899
Loans receivable originated and purchased, held for    (69,656)   (128,276)
sale
Proceeds from sale of loans receivable, held for sale  75,040     148,243
Increase in deferred income taxes                      28,252     40,403
Excess tax benefits from share-based payment           (267)      (445)
arrangements
Allowance for equity funds used during construction    (2,996)    (2,775)
Change in cash overdraft                               (1,038)    —
Changes in assets and liabilities
Decrease (increase) in accounts receivable and         (2,986)    3,564
unbilled revenues, net
Decrease (increase) in fuel oil stock                  (27,206)   43,974
Increase in regulatory assets                          (17,731)   (37,586)
Decrease in accounts, interest and dividends payable   (64,843)   (43,384)
Change in prepaid and accrued income taxes and utility (32,510)   (33,822)
revenue taxes
Decrease in defined benefit pension and other          (1,714)    (330)
postretirement benefit plans liability
Change in other assets and liabilities                 (16,871)   (17,597)
Net cash provided by operating activities              46,195     130,792
Cash flows from investing activities
Available-for-sale investment and mortgage-related     (125,531)  (39,721)
securities purchased
Principal repayments on available-for-sale investment  33,202     62,819
and mortgage-related securities
Proceeds from sale of available-for-sale investment    79,564     71,367
securities
Redemption of stock from Federal Home Loan Bank of     11,683     1,742
Seattle
Net increase in loans held for investment              (137,122)  (201,184)
Proceeds from sale of real estate acquired in          2,162      5,712
settlement of loans
Capital expenditures                                   (149,253)  (158,830)
Contributions in aid of construction                   13,209     17,188
Other                                                  (16)       622
Net cash used in investing activities                  (272,102)  (240,285)
Cash flows from financing activities
Net increase in deposit liabilities                    152,383    46,326
Net increase in short-term borrowings with original    79,693     42,093
maturities of three months or less
Net decrease in retail repurchase agreements           (2,053)    (8,054)
Proceeds from other bank borrowings                    —          25,000
Repayments of other bank borrowings                    —          (25,000)
Proceeds from issuance of long-term debt               125,000    50,000
Repayment of long-term debt                            (100,000)  (50,000)
Excess tax benefits from share-based payment           267        445
arrangements
Net proceeds from issuance of common stock             3,048      11,994
Common stock dividends                                 (62,892)   (48,921)
Preferred stock dividends of subsidiaries              (946)      (946)
Other                                                  (252)      606
Net cash provided by financing activities              194,248    43,543
Net decrease in cash and cash equivalents              (31,659)   (65,950)
Cash and cash equivalents, beginning of period         220,036    219,662
Cash and cash equivalents, end of period               $ 188,377  $ 153,712

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 Reports on SEC Form 10-Q
for the quarters ended March 31, 2014 and June 30, 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.

Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
                           Three months ended    Six months ended
                           June 30               June 30
(dollars inthousands,     2014       2013       2014         2013
except per barrel amounts)
Revenues                   $ 738,429  $ 728,525  $ 1,458,491  $ 1,445,966
Expenses
Fuel oil                   270,257    289,278    556,557      594,378
Purchased power            188,323    178,444    353,239      331,808
Other operation and        98,564     94,397     187,170      196,210
maintenance
Depreciation               41,593     38,590     83,196       76,870
Taxes, other than income   69,624     68,841     137,595      136,604
taxes
Total expenses             668,361    669,550    1,317,757    1,335,870
Operating income           70,068     58,975     140,734      110,096
Allowance for equity funds 1,387      1,560      2,996        2,775
used during construction
Interest expense and other (16,852)   (14,408)   (32,575)     (28,927)
charges, net
Allowance for borrowed
funds used during          523        398        1,137        1,128
construction
Income before income taxes 55,126     46,525     112,292      85,072
Income taxes               20,397     17,333     41,644       30,952
Net income                 34,729     29,192     70,648       54,120
Preferred stock dividends  229        229        458          458
of subsidiaries
Net income attributable to 34,500     28,963     70,190       53,662
Hawaiian Electric
Preferred stock dividends  270        270        540          540
of Hawaiian Electric
Net income for common      34,230     28,693     $ 69,650     $ 53,122
stock
Comprehensive income
attributable to Hawaiian   $ 34,243   $ 28,710   $ 69,672     $ 53,157
Electric
OTHER ELECTRIC UTILITY
INFORMATION
Kilowatthour sales
(millions)
Hawaiian Electric          1,652      1,702      3,247        3,293
Hawaii Electric Light      261        265        520          528
Maui Electric              276        280        548          549
                           2,189      2,247      4,315        4,370
Wet-bulb temperature (Oahu
average; degrees           69.1       69.3       68.1         67.6
Fahrenheit)
Cooling degree days (Oahu) 1,244      1,114      2,072        1,903
Average fuel oil cost per  $ 132.07   $ 129.94   $ 131.60     $ 131.49
barrel
Twelve months ended June                         2014         2013
30
Return on average common
equity (%) (simple
average)^1
Hawaiian Electric                                9.56         6.80
Hawaii Electric Light                            7.58         5.18
Maui Electric                                    8.16         7.39
Hawaiian Electric                                8.99         6.58
Consolidated

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 Reports on SEC Form 10-Q for the quarters ended March 31,
2014 and June 30, 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.

^1On a core basis, the 2014 and 2013 return on average common equity (twelve
months ended June 30) were 9.6% and 8.7%, respectively for Hawaiian Electric;
7.6% and 6.4%, respectively for Hawaii Electric Light; 8.2% and 8.8%,
respectively for Maui Electric and 9.0% and 8.3% 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)
(dollars in thousands, except par value)   June30, 2014  December31, 2013
Assets
Property, plant and equipment
Utility property, plant and equipment
Land                                       $  52,010      $    51,883
Plant and equipment                        5,830,723      5,701,875
Less accumulated depreciation              (2,150,913)    (2,111,229)
Construction in progress                   168,280        143,233
 Utility property, plant and equipment,   3,900,100      3,785,762
net
Nonutility property, plant and equipment,
less accumulated depreciation of $1,226    6,564          6,567
and $1,223 at respective dates
Total property, plant and equipment, net   3,906,664      3,792,329
Current assets
Cash and cash equivalents                  12,720         62,825
Customer accounts receivable, net          175,634        175,448
Accrued unbilled revenues, net             141,869        144,124
Other accounts receivable, net             18,915         14,062
Fuel oil stock, at average cost            161,293        134,087
Materials and supplies, at average cost    60,879         59,044
Prepayments and other                      61,891         52,857
Regulatory assets                          78,945         69,738
Total current assets                       712,146        712,185
Other long-term assets
Regulatory assets                          503,700        506,186
Unamortized debt expense                   8,905          9,003
Other                                      68,426         67,426
Total other long-term assets               581,031        582,615
Total assets                               $  5,199,841   $    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                          974,028        948,624
Accumulated other comprehensive income,
net of income taxes-retirement benefit     630            608
plans
Common stock equity                        1,618,987      1,593,564
Cumulative preferred stock — not subject   34,293         34,293
to mandatory redemption
Long-term debt, net                        1,206,545      1,206,545
Total capitalization                       2,859,825      2,834,402
Current liabilities
Current portion of long-term debt          11,400         11,400
Short-term borrowings from non-affiliates  102,989        —
Accounts payable                           153,743        189,559
Interest and preferred dividends payable   21,751         21,652
Taxes accrued                              216,374        249,445
Regulatory liabilities                     789            1,916
Other                                      64,569         63,881
Total current liabilities                  571,615        537,853
Deferred credits and other liabilities
Deferred income taxes                      557,056        507,161
Regulatory liabilities                     354,191        347,383
Unamortized tax credits                    77,713         73,539
Defined benefit pension and other          252,785        262,162
postretirement benefit plans liability
Other                                      84,277         91,735
Total deferred credits and other           1,326,022      1,281,980
liabilities
Contributions in aid of construction       442,379        432,894
Total capitalization and liabilities       $  5,199,841   $    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 Reports on SEC Form 10-Q for the quarters ended March 31,
2014 and June 30, 2014 (when filed), as updated by SEC Forms 8-K.

Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended June 30                               2014       2013
(inthousands)
Cash flows from operating activities
Net income                                             $  70,648  $  54,120
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation of property, plant and equipment          83,196     76,870
Other amortization                                     3,597      2,884
Increase in deferred income taxes                      45,386     38,780
Change in tax credits, net                             4,227      2,997
Allowance for equity funds used during construction    (2,996)    (2,775)
Change in cash overdraft                               (1,038)    —
Changes in assets and liabilities
Decrease (increase) in accounts receivable             (5,039)    32,253
Decrease (increase) in accrued unbilled revenues       2,255      (4,889)
Decrease (increase) in fuel oil stock                  (27,206)   43,974
Increase in materials and supplies                     (1,835)    (7,139)
Increase in regulatory assets                          (17,731)   (37,586)
Decrease in accounts payable                           (63,306)   (41,234)
Change in prepaid and accrued income taxes and utility (38,270)   (38,123)
revenue taxes
Increase (decrease) in defined benefit pension and     (498)      989
other postretirement benefit plans liability
Change in other assets and liabilities                 (26,258)   (9,419)
Net cash provided by operating activities              25,132     111,702
Cash flows from investing activities
Capital expenditures                                   (145,734)  (150,251)
Contributions in aid of construction                   13,209     17,188
Other                                                  —          623
Net cash used in investing activities                  (132,525)  (132,440)
Cash flows from financing activities
Common stock dividends                                 (44,246)   (40,789)
Preferred stock dividends of Hawaiian Electric and     (998)      (998)
subsidiaries
Net increase in short-term borrowings from
non-affiliates and affiliate with original maturities  102,989    53,992
of three months or less
Other                                                  (457)      (9)
Net cash provided by financing activities              57,288     12,196
Net decrease in cash and cash equivalents              (50,105)   (8,542)
Cash and cash equivalents, beginning of period         62,825     17,159
Cash and cash equivalents, end of period               $  12,720  $  8,617

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 Reports on SEC Form 10-Q for the quarters ended March 31,
2014 and June 30, 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            Six months ended June
                                                      30
(inthousands)         June 30,  March 31,  June 30,  2014      2013
                       2014      2014       2013
Interest and dividend
income
Interest and fees on   $ 43,851  $  43,682  $ 43,624  $ 87,533  $ 86,227
loans
Interest and dividends
on investment and      2,950     3,035      3,234     5,985     6,698
mortgage-related
securities
Total interest and     46,801    46,717     46,858    93,518    92,925
dividend income
Interest expense
Interest on deposit    1,237     1,225      1,296     2,462     2,608
liabilities
Interest on other      1,420     1,405      1,178     2,825     2,342
borrowings
Total interest expense 2,657     2,630      2,474     5,287     4,950
Net interest income    44,144    44,087     44,384    88,231    87,975
Provision (credit) for 1,021     995        (959)     2,016     899
loan losses
Net interest income
after provision        43,123    43,092     45,343    86,215    87,076
(credit) for loan
losses
Noninterest income
Fees from other        5,217     5,128      7,996     10,345    15,639
financial services
Fee income on deposit  4,645     4,421      4,433     9,066     8,747
liabilities
Fee income on other    2,064     2,290      1,780     4,354     3,574
financial products
Mortgage banking       246       628        2,003     874       5,349
income
Gain on sale of        —         2,847      1,226     2,847     1,226
securities
Other income, net      1,643     1,588      1,731     3,231     3,323
Total noninterest      13,815    16,902     19,169    30,717    37,858
income
Noninterest expense
Compensation and       19,872    20,286     20,063    40,158    40,151
employee benefits
Occupancy              4,489     3,953      4,219     8,442     8,342
Data processing        2,971     3,060      2,827     6,031     5,814
Services               2,855     2,273      2,328     5,128     4,431
Equipment              1,609     1,645      1,870     3,254     3,644
Other expense          8,094     7,153      8,500     15,247    16,095
Total noninterest      39,890    38,370     39,807    78,260    78,477
expense
Income before income   17,048    21,624     24,705    38,672    46,457
taxes
Income taxes           5,372     7,085      8,786     12,457    16,383
Net income             $ 11,676  $  14,539  $ 15,919  $ 26,215  $ 30,074
Comprehensive income   $ 14,434  $  15,563  $ 7,340   $ 29,997  $ 22,824
OTHER BANK INFORMATION
(annualized %, except
as of period end)
Return on average      0.87      1.10       1.25      0.98      1.19
assets
Return on average      8.78      11.03      12.56     9.90      11.93
equity
Return on average      10.39     13.06      15.00     11.72     14.25
tangible common equity
Net interest margin    3.55      3.64       3.79      3.59      3.79
Net charge-offs
(recoveries) to        (0.04)    0.02       0.08      (0.01)    0.10
average loans
outstanding
As of period end
Nonperforming assets
to loans outstanding   1.05      1.12       1.56
and real estate owned
*
Allowance for loan
losses to loans        0.99      0.98       1.04
outstanding
Tier-1 leverage ratio  9.0       9.0        9.3
*
Total risk-based       12.6      12.7       12.5
capital ratio *
Tangible common equity 8.46      8.44       8.42
to total assets
Dividend paid to HEI
(via ASHI) ($ in       10        9          10
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 Reports on SEC Form 10-Q
for the quarters ended March 31, 2014 and June 30, 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)                  June 30, 2014         December 31, 2013
Assets
Cash and cash equivalents                $ 174,950               $ 156,603
Available-for-sale investment            549,321                 529,007
and mortgage-related securities
Investment in stock of Federal           80,863                  92,546
Home Loan Bank of Seattle
Loans receivable held for                4,287,612               4,150,229
investment
Allowance for loan losses                (42,372)                (40,116)
Loans receivable held for                4,245,240               4,110,113
investment, net
Loans held for sale, at lower            956                     5,302
of cost or fair value
Other                                    284,607                 268,063
Goodwill                                 82,190                  82,190
Total assets                             $ 5,418,127             $ 5,243,824
Liabilities and shareholder's
equity
Deposit                                  $ 1,301,758             $ 1,214,418
liabilities—noninterest-bearing
Deposit                                  3,223,102               3,158,059
liabilities—interest-bearing
Other borrowings                         242,455                 244,514
Other                                    116,953                 105,679
Total liabilities                        4,884,268               4,722,670
Common stock                             337,262                 336,054
Retained earnings                        205,012                 197,297
Accumulated other comprehensive
loss, net of tax benefits
Net unrealized losses on        $ (315)               $ (3,663)
securities
Retirement benefit plans        (8,100)  (8,415)      (8,534)    (12,197)
Total shareholder's equity               533,859                 521,154
Total liabilities and                    $ 5,418,127             $ 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 Reports on SEC Form 10-Q
for the quarters ended March 31, 2014 and June 30, 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 June 30,                                  2014     2013
HEI CONSOLIDATED NET INCOME
GAAP (as reported)                                            $ 174.6  $ 135.8
Excluding special items (after-tax):
Settlement agreement for the partial writedown of certain     —        24.4
utility assets
Non-GAAP (core)                                               $ 174.6  $ 160.2
HEI CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average)
Based on GAAP                                                 10.3%    8.5%
Based on non-GAAP (core)^2                                    10.3%    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 June 30,                                2014     2013
HAWAIIAN ELECTRIC CONSOLIDATED NET INCOME
GAAP (as reported)                                          $ 139.5  $ 95.7
Excluding special items (after-tax):
Settlement agreement for the partial writedown of certain   —        24.4
utility assets
Non-GAAP (core)                                             $ 139.5  $ 120.2
HAWAIIAN ELECTRIC CONSOLIDATED RETURN ON AVERAGE COMMON
EQUITY (ROACE) (simple average):
Based on GAAP                                               9.0%     6.6%
Based on non-GAAP (core)^2                                  9.0%     8.3%

                      Hawaiian Electric  Hawaii Electric Light  Maui Electric
Twelve months ended   
June 30,                         2013    2014        2013       2014    2013
                      2014
NET INCOME
                      
GAAP (as reported)        98.9   $ 64.0  $   20.8    $  14.4    $ 19.7  $ 17.3
                      $
Excluding special
items (after-tax):
Settlement agreement  
for the partial                  17.7    —           3.4        —       3.4
writedown of certain  —
utility assets
                      
Non-GAAP (core)           98.9   $ 81.7  $   20.8    $  17.8    $ 19.7  $ 20.7
                      $
RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average):
                      
Based on GAAP                    6.8%    7.6%        5.2%       8.2%    7.4%
                      9.6%
Based on non-GAAP     
(core)^2                         8.7%    7.6%        6.4%       8.2%    8.8%
                      9.6%
Three months ended                                              2014    2013
June 30,
HAWAIIAN ELECTRIC CONSOLIDATED OTHER OPERATION AND MAINTENANCE (O&M) EXPENSE
GAAP (as reported)                                              $ 98.6  $ 94.4
Excluding O&M-related
net income neutral                                              (2.9)   (2.0)
items^3
Adjusted O&M expense                                            $ 95.6  $ 92.4
(Non-GAAP measure)
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: Clifford H. Chen
         Manager, Investor Relations & Telephone: (808) 543-7384
         Strategic Planning            E-mail: cchen@hei.com

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SOURCE Hawaiian Electric Industries, Inc.

Website: http://www.hei.com
 
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