HEI Reports First Quarter 2011 Earnings & Declares Dividend Diluted Earnings Per Share $0.30 in 1Q 2011 vs $0.29 in 1Q 2010

Sales Decoupling Implemented at Largest Utility

Bank Continues Strong Performance

Board of Directors Declares Dividend of $0.31 Per Share

HONOLULU, May 9, 2011 /PRNewswire/ -- Hawaiian Electric Industries, Inc. (NYSE: HE) (HEI) today reported consolidated net income for common stock for the first quarter of 2011 was $28.5 million, or $0.30 diluted EPS, compared to $27.1 million, or $0.29 diluted EPS for the first quarter of 2010.  

"This was a solid quarter for HEI.  We achieved another significant milestone in the implementation of our new regulatory model at our largest utility, advanced several clean energy projects, and delivered continued strong performance at the bank," said Constance H. Lau, HEI president and chief executive officer.

"At the utility, although earnings and returns on equity remain depressed pending the outcome of the Oahu 2011 rate case and other regulatory proceedings, we are pleased that we were able to implement sales decoupling for HECO Oahu to further align our financial business model with our state's public policy to promote energy efficiency and conservation.  At the bank, we are pleased to report another quarter of solid performance with a return on assets of 1.15%, net interest margin of 4.16%, lower credit costs, and loan growth for the second consecutive quarter," added Lau.

UTILITY NET INCOME SLIGHTLY HIGHER ON WEATHER

Electric utility net income for the first quarter of 2011 was $19.2 million compared to $18.1 million in the first quarter of 2010.  The $1.1 million net income improvement resulted primarily from (on an after-tax basis):

  • Approximately $4 million of higher kilowatthour sales, largely due to warmer and more humid weather; and
  • $3 million of rate relief granted in our 2010 Hawaii Island and Maui County rate cases and the 2009 Oahu rate case.

These were partially offset by:

  • $4 million higher operations and maintenance (O&M) expenses(1); and
  • $1 million lower allowance for funds used during construction as a result of projects put into service in 2010.

Our Hawaii Island and Maui County utilities will continue to be impacted by changes in sales levels as they await decoupling implementation.  Kilowatthour sales were up 0.4% and 2.0% for our Hawaii Island and Maui County utilities, respectively, in the first quarter.  

For our Oahu utility, kilowatthour sales for the first two months of 2011 were 3.2% higher than the same period last year.  Subsequently, sales decoupling became effective on March 1, 2011 and starting from that date, actual kilowatthour sales are no longer a net income driver.

O&M expenses(1) (pretax) were up 8% over the same quarter last year.  This increase resulted primarily from higher emission fees (fees were waived in 2010), and higher vegetation and substation maintenance expenses.  This level of increase is consistent with our guidance for a 7% annual increase in 2011.

(1) Excludes demand-side management (DSM) program costs.  DSM program costs were $2 million in the first quarter of 2011 compared to $1 million in the first quarter of 2010.  DSM program costs are recovered through a surcharge.

BANK MAINTAINS PROFITABILITY AND LOWER COST STRUCTURE AND RESULTS REFLECT LOWER CREDIT COSTS

Bank net income for the first quarter of 2011 was $13.9 million compared to $13.7 million for the same quarter last year and $13.3 million in the fourth quarter of 2010.

The bank was able to hold first quarter 2011 net income essentially flat with the same quarter last year as lower expenses offset lower revenues.  The major variances over the same quarter last year were (on an after-tax basis):

  • $2 million reduction in noninterest expense derived from the completion of the performance improvement project; offset by
  • $1 million reduction in noninterest income due to lower fees as a result of regulatory changes related to overdraft fees which became effective in the third quarter of 2010; and
  • $1 million reduction in net interest income due to lower yields and lower earning asset balances largely in the residential loan portfolio.

The $0.6 million increase in first quarter 2011 net income compared to the fourth quarter of 2010 was primarily due to (on an after-tax basis):  $2 million lower provision for loan losses partially offset by $1 million lower noninterest income.

Net interest margin was 4.16% in the first quarter of 2011, down slightly from 4.18% in the first quarter of 2010 and 4.21% in the fourth quarter 2010.  The decline in net interest margin from the fourth quarter 2010 to the first quarter 2011 was predominantly attributable to lower deferred loan fees recognized in the first quarter 2011 because of declining mortgage prepayments.  However, earning assets increased by approximately $60 million in the quarter and reflected the second consecutive quarter of loan growth.    

Provision for loan losses (pretax) improved to $4.6 million in the first quarter of 2011 compared to $5.4 million in the first quarter of 2010 and $8.6 million in the fourth quarter of 2010.  The decline in the provision from fourth quarter 2010 was primarily due to the fourth quarter's provision including a $1.2 million charge-off of one commercial loan and a $1.4 million one-time adjustment to enhance our reserve methodology for the declining portfolio of residential lot loans.  The majority of the provision in the first quarter 2011 reflected net charge-offs in the following loan categories:  the neighbor island and mainland residential loans and vacant lot loans.  We continue to expect provision to be in the range of $15 to $20 million for the year.

The first quarter 2011 net charge-off ratio remains low and declined further to 0.49%, from the 0.62% in the first quarter last year and from 0.72% reported last quarter.  

Noninterest expense (pretax) for the first quarter 2011 of $35.1 million was down from the $38.0 million in the first quarter of 2010 and flat compared to the fourth quarter of 2010 as the bank continued to maintain the savings and efficiencies it achieved from the performance improvement project.

The bank remains strongly capitalized with a Tier 1 leverage ratio of 9.1% and total risk-based capital ratio of 13.5% as of the end of the first quarter of 2011.

HOLDING AND OTHER COMPANIES

The holding and other companies' net losses were $4.6 million in the first quarter of 2011, which was relatively flat compared to $4.7 million in the first quarter of 2010.

BOARD DECLARES QUARTERLY DIVIDEND

On May 9, 2011, the board of directors of HEI maintained the regular quarterly cash dividend of 31 cents per share, payable on June 14, 2011, to shareholders of record at the close of business on May 20, 2011 (ex-dividend date is May 18, 2011).  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, 2011 of $26.00, HEI's yield is 4.8%.

WEBCAST AND TELECONFERENCE

Hawaiian Electric Industries, Inc. will conduct a webcast and teleconference call to review its first quarter 2011 earnings on Tuesday, May 10, 2011, 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.com or by dialing (866) 202-3048, passcode:  29544086 for the teleconference call.  HEI and Hawaiian Electric Company, Inc. (HECO) 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, HECO's and ASB's press releases, SEC filings and public conference calls and webcasts.  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.

An online replay of the webcast will be available at the same website beginning about two hours after the event.  Replays of the teleconference call will also be available approximately two hours after the event through May 24, 2011, by dialing (888) 286-8010, passcode: 72028574.

HEI supplies power to over 400,000 customers or 95% of Hawaii's population through its electric utilities, HECO, 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 ASB, one of Hawaii's largest financial institutions.

FORWARD-LOOKING STATEMENTS

This release may contain "forward-looking statements," which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as expects, anticipates, intends, plans, believes, predicts, estimates or similar expressions.  In addition, any statements concerning future financial performance (including future revenues, expenses, earnings or losses or growth rates), ongoing business strategies or prospects or possible future actions, which may be provided by management, 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 assumptions about 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" discussion (which is incorporated by reference herein) set forth on pages v and vi of HEI's Annual Report on Form 10-K for the year ended December 31, 2010, and in HEI's future periodic reports that discuss important factors that could cause HEI's results to differ materially from those anticipated in such statements.  Forward-looking statements speak only as of the date of this release.

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries





CONSOLIDATED STATEMENTS OF INCOME





(Unaudited)


Three months ended




March 31,

(in thousands, except per share amounts)


2011


2010

Revenues





Electric utility


$ 645,335


$ 548,111

Bank


65,313


70,914

Other


(15)


15




710,633


619,040

Expenses





Electric utility


600,127


505,502

Bank


43,559


49,143

Other


3,572


3,688




647,258


558,333

Operating income (loss)





Electric utility


45,208


42,609

Bank


21,754


21,771

Other


(3,587)


(3,673)




63,375


60,707

Interest expense–other than on deposit liabilities






and other bank borrowings


(20,140)


(20,381)

Allowance for borrowed funds used during construction


520


779

Allowance for equity funds used during construction


1,244


1,773

Income before income taxes


44,999


42,878

Income taxes


16,064


15,279

Net income


28,935


27,599

Preferred stock dividends of subsidiaries


473


473

Net income for common stock


$   28,462


$   27,126

Basic earnings per common share


$       0.30


$       0.29

Diluted earnings per common share


$       0.30


$       0.29

Dividends per common share


$       0.31


$       0.31

Weighted-average number of common shares outstanding


94,817


92,572

Adjusted weighted-average shares


95,182


92,848







Income (loss) by segment






Electric utility


$   19,189


$   18,052


Bank


13,851


13,736


Other


(4,578)


(4,662)

Net income for common stock


$   28,462


$   27,126









This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HEI's Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2011 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.



Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries



CONSOLIDATED BALANCE SHEETS



(Unaudited)




March 31,

December 31,

(dollars in thousands)

2011

2010

Assets



Cash and cash equivalents

$         316,254

$           330,651

Accounts receivable and unbilled revenues, net

286,876

266,996

Available-for-sale investment and mortgage-related securities

670,949

678,152

Investment in stock of Federal Home Loan Bank of Seattle

97,764

97,764

Loans receivable held for investment, net

3,549,750

3,489,880

Loans held for sale, at lower of cost or fair value

4,308

7,849

Property, plant and equipment, net of accumulated depreciation of



   $2,032,500 in 2011 and $2,037,598 in 2010

3,175,375

3,165,918

Regulatory assets

481,812

478,330

Other

462,258

487,614

Goodwill

82,190

82,190

    Total assets

$      9,127,536

$        9,085,344

Liabilities and shareholders’ equity



Liabilities



Accounts payable

$         162,748

$           202,446

Interest and dividends payable

27,496

27,814

Deposit liabilities

4,035,255

3,975,372

Short-term borrowings—other than bank

-

24,923

Other bank borrowings

244,674

237,319

Long-term debt, net—other than bank

1,439,974

1,364,942

Deferred income taxes

291,470

278,958

Regulatory liabilities

304,375

296,797

Contributions in aid of construction

338,070

335,364

Other

752,630

823,479

    Total liabilities

7,596,692

7,567,414




Preferred stock of subsidiaries - not subject to mandatory redemption

34,293

34,293




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:  95,288,966 share in 2011 and 94,690,932 shares in 2010

1,329,901

1,314,199

Retained earnings

180,960

181,910

Accumulated other comprehensive loss, net of tax benefits

(14,310)

(12,472)

    Total shareholders' equity

1,496,551

1,483,637

    Total liabilities and shareholders' equity

$      9,127,536

$        9,085,344






This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HEI's Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2011 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.



Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries



CONSOLIDATED STATEMENTS OF CASH FLOWS



(Unaudited)



Three months ended March 31

2011

2010

(in thousands)



Cash flows from operating activities



Net income

$  28,935

$  27,599

Adjustments to reconcile net income to net cash provided by (used in) operating activities



     Depreciation of property, plant and equipment

37,708

39,798

     Other amortization

2,354

1,565

     Provision for loan losses

4,550

5,359

     Loans receivable originated and purchased, held for sale

(35,015)

(78,685)

     Proceeds from sale of loans receivable, held for sale

43,048

82,814

     Changes in deferred income taxes

16,687

(129)

     Changes in excess tax benefits from share-based payment arrangements

(22)

(43)

     Allowance for equity funds used during construction

(1,244)

(1,773)

     Increase (decrease) in cash overdraft

(2,688)

681

     Changes in assets and liabilities



          Decrease (increase) in accounts receivable and unbilled revenues, net

(19,880)

7,231

          Increase in fuel oil stock

(3,513)

(26,506)

          Increase (decrease) in accounts, interest and dividends payable

(40,016)

2,155

          Changes in prepaid and accrued income taxes and utility revenue taxes

(1,594)

(48,689)

          Changes in other assets and liabilities

(42,544)

(1,508)

Net cash provided by (used in) operating activities

(13,234)

9,869

Cash flows from investing activities



Available-for-sale investment and mortgage-related securities purchased

(109,307)

(170,385)

Principal repayments on available-for-sale investment and mortgage-related securities

114,529

48,338

Net decrease (increase) in loans held for investment

(70,269)

38,072

Proceeds from sale of real estate acquired in settlement of loans

1,253

1,279

Capital expenditures

(38,491)

(34,816)

Contributions in aid of construction

5,749

3,729

Other

145

-

Net cash used in investing activities

(96,391)

(113,783)

Cash flows from financing activities



Net increase (decrease) in deposit liabilities

59,883

(50,369)

Net increase (decrease) in short-term borrowings with original maturities of three months or less

(24,923)

18,249

Net increase (decrease) in retail repurchase agreements

7,368

(3,461)

Proceeds from issuance of long-term debt

125,000

-

Repayment of long-term debt

(50,000)

-

Changes in excess tax benefits from share-based payment arrangements

22

43

Net proceeds from issuance of common stock

5,674

5,557

Common stock dividends

(23,593)

(23,048)

Preferred stock dividends of subsidiaries

(473)

(473)

Other

(3,730)

(4,474)

Net cash provided by (used in) financing activities

95,228

(57,976)

Net decrease in cash and cash equivalents

(14,397)

(161,890)

Cash and cash equivalents, beginning of period

330,651

503,922

Cash and cash equivalents, end of period

$316,254

$342,032






This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HEI's Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2011 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.



Hawaiian Electric Company, Inc. (HECO) and Subsidiaries





CONSOLIDATED STATEMENTS OF INCOME





(Unaudited)


Three months ended



March 31,

(dollars in thousands, except per barrel amounts)


2011


2010






Operating revenues


$           644,301


$            546,712

Operating expenses





Fuel oil


260,860


211,752

Purchased power


147,958


116,782

Other operation


65,531


59,244

Maintenance


29,196


27,053

Depreciation


36,432


38,642

Taxes, other than income taxes


59,995


51,791

Income taxes


11,610


11,041



611,582


516,305

Operating income


32,719


30,407

Other income





Allowance for equity funds used during construction


1,244


1,773

Other, net


910


1,241



2,154


3,014

Interest and other charges





Interest on long-term debt


14,383


14,383

Amortization of net bond premium and expense


783


667

Other interest charges


539


599

Allowance for borrowed funds used during construction


(520)


(779)



15,185


14,870

Net income


19,688


18,551

Preferred stock dividends of subsidiaries


229


229

Net income attributable to HECO


19,459


18,322

Preferred stock dividends of HECO


270


270

Net income for common stock


$             19,189


$              18,052

OTHER ELECTRIC UTILITY INFORMATION





Kilowatthour sales (millions)


2,350


2,273

Wet-bulb temperature (Oahu average; degrees Fahrenheit)


67.1


65.7

Cooling degree days (Oahu)


920


857

Average fuel oil cost per barrel


$101.03


$81.95

Customer accounts (end of period)


445,151


443,294








Twelve months ended

Return on average common equity  


March 31, 2011

(rate-making, simple average method)


Allowed %(1)


Actual %

  HECO


10.00


5.63

  HELCO


10.50


7.26

  MECO


10.50


5.59



(1)  Based on the decisions applicable to rates in effect on March 31, 2011 (interim decisions for HELCO and MECO; final decision for HECO, which reflects the approval of decoupling and other cost-recovery mechanisms). MECO's interim rates became effective in August 2010. HELCO’s interim rates became effective in January 2011. HECO's interim rates are expected to become effective in summer 2011.   


This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO’s Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HECO's Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2011 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.



Hawaiian Electric Company, Inc. (HECO) and Subsidiaries



CONSOLIDATED BALANCE SHEETS



(Unaudited)




March 31,

December 31,

(in thousands, except share data)

2011

2010

Assets



Utility plant, at cost



Land

$     51,440

$        51,364

Plant and equipment

4,909,393

4,896,974

Less accumulated depreciation

(1,946,072)

(1,941,059)

Construction in progress

104,300

101,562

    Net utility plant

3,119,061

3,108,841

Current assets



Cash and cash equivalents

45,354

122,936

Customer accounts receivable, net

149,486

138,171

Accrued unbilled revenues, net

113,786

104,384

Other accounts receivable, net

9,332

9,376

Fuel oil stock, at average cost

156,218

152,705

Materials and supplies, at average cost

37,782

36,717

Prepayments and other

18,931

55,216

Regulatory assets

8,320

7,349

    Total current assets

539,209

626,854

Other long-term assets



Regulatory assets

473,492

470,981

Unamortized debt expense

13,583

14,030

Other

66,215

64,974

    Total other long-term assets

553,290

549,985

         Total assets

$4,211,560

$   4,285,680

Capitalization and liabilities



Capitalization



Common stock, $6 2/3 par value, authorized 50,000,000 shares; outstanding



   13,830,823 shares

$     92,224

$        92,224

Premium on capital stock

389,609

389,609

Retained earnings

856,405

854,856

Accumulated other comprehensive income, net of income taxes

736

709

    Common stock equity

1,338,974

1,337,398

Cumulative preferred stock – not subject to mandatory redemption

34,293

34,293

Long-term debt, net

1,057,974

1,057,942

    Total capitalization

2,431,241

2,429,633

Current liabilities



Accounts payable

137,956

178,959

Interest and preferred dividends payable

20,476

20,603

Taxes accrued

146,136

175,960

Other

50,078

56,354

    Total current liabilities

354,646

431,876

Deferred credits and other liabilities



Deferred income taxes

281,422

269,286

Regulatory liabilities

304,375

296,797

Unamortized tax credits

59,454

58,810

Retirement benefits liability

333,518

355,844

Other

108,834

108,070

    Total deferred credits and other liabilities

1,087,603

1,088,807

Contributions in aid of construction

338,070

335,364

         Total capitalization and liabilities

$4,211,560

$   4,285,680






This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO’s Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HECO's Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2011 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.



Hawaiian Electric Company, Inc. (HECO) and Subsidiaries



CONSOLIDATED STATEMENTS OF CASH FLOWS



(Unaudited)



Three months ended March 31

2011

2010

(in thousands)



Cash flows from operating activities



Net income

$19,688

$18,551

Adjustments to reconcile net income to net cash used in operating activities



     Depreciation of property, plant and equipment

36,432

38,642

     Other amortization

2,288

2,097

     Changes in deferred income taxes

13,521

(1,834)

     Changes in tax credits, net

755

776

     Allowance for equity funds used during construction

(1,244)

(1,773)

     Increase (decrease) in cash overdraft

(2,688)

681

     Changes in assets and liabilities



          Decrease (increase) in accounts receivable

(11,271)

7,328

          Increase in accrued unbilled revenues

(9,402)

(486)

          Increase in fuel oil stock

(3,513)

(26,506)

          Increase in materials and supplies

(1,065)

(1,248)

          Increase in regulatory assets

(7,872)

(1,143)

          Increase (decrease) in accounts payable

(42,123)

3,175

          Changes in prepaid and accrued income taxes and utility revenue taxes

240

(51,243)

          Changes in other assets and liabilities

(21,378)

3,276

Net cash used in operating activities

(27,632)

(9,707)

Cash flows from investing activities



Capital expenditures

(37,556)

(34,189)

Contributions in aid of construction

5,749

3,729

Net cash used in investing activities

(31,807)

(30,460)

Cash flows from financing activities



Common stock dividends

(17,640)

(15,150)

Preferred stock dividends of HECO and subsidiaries

(499)

(499)

Net increase in short-term borrowings from nonaffiliates and



affiliate with original maturities of three months or less

-

13,748

Other

(4)

-

Net cash used in financing activities

(18,143)

(1,901)

Net decrease in cash and cash equivalents

(77,582)

(42,068)

Cash and cash equivalents, beginning of the period

122,936

73,578

Cash and cash equivalents, end of period

$45,354

$31,510






This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO’s Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HECO's Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2011 (when filed). 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. and Subsidiaries







CONSOLIDATED STATEMENTS OF INCOME DATA







(Unaudited)


Three months ended



March 31,


December 31,


March 31,

(in thousands)


2011


2010


2010

Interest and dividend income







Interest and fees on loans


$  46,097


$         46,898


$  49,745

Interest and dividends on investment and mortgage-related securities


3,769


4,131


3,317



49,866


51,029


53,062

Interest expense







Interest on deposit liabilities


2,593


3,031


4,423

Interest on other borrowings


1,367


1,395


1,426



3,960


4,426


5,849

Net interest income


45,906


46,603


47,213

Provision for loan losses


4,550


8,584


5,359

Net interest income after provision for loan losses


41,356


38,019


41,854

Noninterest income







Fees from other financial services


6,946


7,436


6,414

Fee income on deposit liabilities


4,449


4,849


7,520

Fee income on other financial products


1,673


1,530


1,525

Other income


2,379


3,874


2,393



15,447


17,689


17,852

Noninterest expense







Compensation and employee benefits


17,505


16,999


17,402

Occupancy


4,240


3,931


4,225

Data processing


1,970


2,292


4,338

Services


1,771


1,477


1,728

Equipment


1,657


1,671


1,709

Other expense


7,933


8,668


8,568



35,076


35,038


37,970

Income before income taxes


21,727


20,670


21,736

Income taxes


7,876


7,374


8,000

Net income


$  13,851


$         13,296


$  13,736















OTHER BANK INFORMATION (%)







Return on average assets


1.15


1.10


1.12

Return on average equity  


11.20


10.59


11.02

Net interest margin


4.16


4.21


4.18

Net charge-offs to average loans outstanding (annualized)


0.49


0.72


0.62

Efficiency ratio


57


54


58

As of period end







Nonperforming assets to loans outstanding and real estate owned **


1.82


1.77


2.13

Allowance for loan losses to loans outstanding


1.14


1.15


1.13

Tier-1 leverage ratio


9.1


9.2


9.1

Total risk-based capital ratio


13.5


13.9


14.0

Tangible common equity to total assets


8.4


8.6


8.6








**  Regulatory basis




This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HEI's Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2011 (when filed). 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. and Subsidiaries



CONSOLIDATED BALANCE SHEETS DATA



(Unaudited)




March 31,

December 31,

(in thousands)

2011

2010




Assets



Cash and cash equivalents

$   220,066

$      204,397

Federal funds sold

374

1,721

Available-for-sale investment and mortgage-related securities

670,949

678,152

Investment in stock of Federal Home Loan Bank of Seattle

97,764

97,764

Loans receivable held for investment, net

3,549,750

3,489,880

Loans held for sale, lower of cost or fair value

4,308

7,849

Other

232,865

234,806

Goodwill

82,190

82,190

    Total assets

$4,858,266

$   4,796,759




Liabilities and shareholder’s equity



Deposit liabilities–noninterest-bearing

$   907,444

$      865,642

Deposit liabilities–interest-bearing

3,127,811

3,109,730

Other borrowings

244,674

237,319

Other

87,030

90,683

    Total liabilities

4,366,959

4,303,374




Common stock

330,898

330,562

Retained earnings

168,962

169,111

Accumulated other comprehensive loss, net of tax benefits

(8,553)

(6,288)

    Total shareholder's equity

491,307

493,385

    Total liabilities and shareholder's equity

$4,858,266

$   4,796,759






This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HEI's Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2011 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.



Hawaiian Electric Industries, Inc.
Shelee M.T. Kimura, (808) 543-7384
Manager, Investor Relations &
Strategic Planning
skimura@hei.com

SOURCE Hawaiian Electric Industries, Inc.



RELATED LINKS
http://www.hei.com

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