SIGNATURES

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

	AMERICAN SAVINGS BANK 401(K) PLAN


Date: June 27, 2017	By:	HAWAIIAN ELECTRIC INDUSTRIES, INC.
		PENSION INVESTMENT COMMITTEE
		Its Named Fiduciary


	By:	/s/ Gregory C. Hazelton
		Gregory C. Hazelton
		Its Chairman


	By:	/s/ Kurt K. Murao
		Kurt K. Murao
		Its Secretary

Table of Contents

Report of Independent Registered Public Accounting Firm

To the Audit Committee and

Pension Investment Committee of

Hawaiian Electric Industries, Inc.

We have audited the accompanying statement of net assets available for benefits of American Savings Bank 401(k) Plan (the “Plan”) as of December 31, 2016, and the related statement of changes in net assets available for benefits for the year then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2016, and the changes in net assets available for benefits for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

The supplemental Schedule of Assets (Held at End of Year) has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.

/s/ Accuity LLP

Honolulu, Hawaii
June 27, 2017

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American Savings Bank

401(k) Plan

Statements of Net Assets Available for Benefits

December 31	2016		2015

Assets
Plan interest in Master Trust
Investments, at fair value	$	108,710,691	$	98,842,813
Notes receivable from participants	3,194,024		3,341,432
Employer contributions receivable	1,828,288		1,768,849
Participant contributions receivable	61,811		65,639
Due from Fidelity	2,171		1,485
Total assets	113,796,985		104,020,218

Liabilities
Accounts payable	3,259		7,515
Net assets available for benefits	$	113,793,726	$	104,012,703

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American Savings Bank

401(k) Plan

Statement of Changes in Net Assets Available for Benefits

Year Ended December 31	2016

Additions
Investment income
Plan interest in Master Trust
Net appreciation in fair value of investments	$	4,951,404
Dividends and interest	2,647,277
Total investment income	7,598,681
Master Trust interest from notes receivable from participants	158,082
Revenue credit	8,686
Contributions
Participants	5,175,276
Employer	3,975,256
Rollover	436,173
Total contributions	9,586,705
Total additions	17,352,154
Deductions
Distributions to participants	(7,546,929		)
Administrative expenses and other	(24,202		)
Total deductions	(7,571,131		)
Net increase	9,781,023
Net assets available for benefits
Beginning of year	104,012,703
End of year	$	113,793,726

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American Savings Bank

401(k) Plan

Notes to Financial Statements

December 31, 2016 and 2015

1. Plan Description

The American Savings Bank 401(k) Plan (the “Plan” or “ASB 401(k) Plan”) was established by American Savings Bank, F.S.B. (“ASB” or the “Bank”) effective January 1, 2008. The Plan is a defined contribution 401(k) plan that provides certain tax-favored retirement benefits to participating employees. ASB is the only participating employer in the Plan at this time.

The following description of the Plan provides only general information. Participants should refer to the Plan document for its detailed provisions, which are also summarized in the most recent prospectus for the Plan and in the summary plan description.

a. Plan Administration

ASB is the Administrator of the Plan. The board of directors of Hawaiian Electric Industries, Inc. (“HEI”), which is the parent corporation of the controlled group of which ASB is a part, has established the Hawaiian Electric Industries, Inc. Pension Investment Committee (“PIC”) to oversee the administration of the Plan and the investment options offered under the Plan. The PIC has appointed an Administrative Committee to oversee the day-to-day administration of the Plan, which includes the discretionary authority to interpret the Plan’s provisions. The PIC has also appointed an Investment Committee to oversee the day-to-day financial affairs of the Plan. The Administrative and Investment Committees are comprised of employees of HEI and its subsidiaries and are chaired by a member of the PIC.

ASB and the Plan pay the Plan’s administrative fees. The Plan’s trustee and certain of the mutual funds offered under the Plan also provide revenue credits to the Plan, which are used to pay for Plan administration including recordkeeping. Fees charged directly to the Plan that are not paid by revenue credits may be allocated to participant accounts. Participants may also be credited with interest and assessed fees related to participants’ notes receivable, withdrawals, and domestic relations orders.

b. Eligibility

For purposes of salary deferral (401(k)) contributions, all common law employees of ASB (other than leased employees) are eligible to participate in the Plan upon one hour of service. Participation in the 401(k) portion of the Plan is voluntary for eligible employees.

c. Salary Deferral Contributions

Employees may make salary deferral contributions of up to 100% of available eligible compensation (i.e., compensation that is available after payroll taxes and other applicable withholdings) subject to a federal tax limit of $18,000 in 2016. Participants who are age 50 or older, or who will reach age 50 during the year, may elect to make catch-up contributions, as defined in the Plan, subject to a federal tax limit of $6,000 in 2016.

Effective January 1, 2014, when a participant makes a salary deferral election, the participant may choose between regular, pre-tax 401(k) contributions and after-tax, Roth contributions.

For purposes of employee salary deferral contributions to the Plan, eligible compensation is defined as Box 1, W-2 earnings during the Plan year modified to (a) exclude fringe benefits, employer nonelective contributions to a cafeteria plan, reimbursements, moving and other expense allowances, special executive compensation, signing bonuses, retention bonuses, service awards, and similar nonperformance based awards, and (b) include nontaxable elective contributions made by ASB to the Plan, a cafeteria plan, or a pre-tax transportation

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American Savings Bank

401(k) Plan

Notes to Financial Statements

December 31, 2016 and 2015

spending plan. Special executive compensation is noncash compensation and nonqualified deferred compensation available only to a select group of management employees. Federal tax law limits the amount of annual compensation that may be taken into account in determining contributions to the Plan. The maximum limit was $265,000 in 2016.

d. Rollover Contributions

A participant or an eligible employee (whether or not a participant) may make a direct rollover to the Plan of an eligible rollover distribution from other qualified defined benefit or defined contribution plans (rollover). The plan may accept direct rollovers of after-tax amounts from qualified retirement plans. The Administrative Committee may consider traditional rollovers by eligible employees. To protect the tax-qualified status of the Plan, the Administrative Committee may ask the eligible employee to provide an opinion of counsel or other evidence to establish that the requirement for a traditional rollover have been satisfied.

e. Matching Contributions

After one year of service, ASB matches employee salary deferral contributions at the rate of 100% of the first 4% of eligible compensation deferred. These matching contributions are known as “AmeriMatch” contributions. For AmeriMatch contributions, compensation is defined in the same way it is defined for salary deferral contributions as described in Note 1.b. above; however, compensation earned prior to an employee becoming eligible for AmeriMatch is not included.

For 2016, ASB made AmeriMatch contributions to the Plan of $2,192,114.

f. Employer Discretionary Contributions

The Plan also includes an annual discretionary profit sharing feature (known as “AmeriShare”). All employees employed on the last day of any Plan year are eligible to share in any AmeriShare allocation for that year. Exceptions to the “last-day requirement” are made for those who die, become disabled, or retire during the year. Retirement is defined as termination of employment either after (i) attaining age 65 or (ii) attaining age 55 and completing 10 years of service with ASB, HEI or any HEI subsidiary. On February 13, 2017, ASB approved an AmeriShare contribution equal to 3.04% of 2016 eligible compensation for the 2016 Plan year. This AmeriShare contribution was deposited into eligible participant accounts on February 15, 2017.

For purposes of calculating any AmeriShare contribution, eligible compensation includes an eligible employee’s annual base salary or pay plus commissions paid during the Plan year, but excludes any amounts deferred to the American Savings Bank Select Deferred Compensation Plan or any other nonqualified deferred compensation plan that are not includible in the gross income of the employee for the taxable year.

g. Participant Accounts

Each participant has an individual account in the Plan, which may include one or more subaccounts. Each participant is always 100% vested in his or her total account, including all subaccounts. A participant’s benefits equal the balance in the participant’s account at the time of distribution. Each participant’s account is credited with the participant’s elective contributions, AmeriMatch and AmeriShare contributions, and allocations of Plan earnings and gains or losses (whether realized or unrealized), and charged with an allocation of any administrative expenses paid directly by the Plan or charged directly to the participant’s account. Individual expenses, such as fees associated with loans and distributions, are

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American Savings Bank

401(k) Plan

Notes to Financial Statements

December 31, 2016 and 2015

charged directly to a participant’s individual account. Other administrative expenses, such as recordkeeping expenses, are paid through investment level expenses that are borne by participants in proportion to their investments in the designated investment alternatives that generate revenue credits for the Plan. Participant accounts are valued at the end of each day that the New York Stock Exchange is open.

The Plan is intended to be an ERISA Section 404(c) plan, under which the fiduciaries of the Plan are relieved of liability for any losses that are the direct and necessary result of a participant’s or beneficiary’s exercise of control over the investments in his or her individual account. Participants are responsible for directing the investment of all amounts in their accounts using investment options offered under the Plan and for the performance of such investments. The Plan currently offers various mutual funds and target-date funds, and a unitized common stock fund that consists of shares of HEI common stock and short-term liquid investments. Participants may change their investment elections at any time. If a participant does not choose an investment option for any portion of the participant’s account, such amounts are automatically invested in the age-appropriate Fidelity Freedom Index Fund or such other investment as the PIC may direct, pending other direction by the participant.

The portion of the Plan comprising the HEI Common Stock Fund is designated as an employee stock ownership plan (“ESOP”). Amounts contributed to the Plan for investment in the HEI Common Stock Fund or transferred to the HEI Common Stock Fund from other investment alternatives become part of the ESOP component of the Plan.

Participants are not required to make any investment in the HEI Common Stock Fund, and there are two limitations on the amount a participant may invest in the HEI Common Stock Fund. First, a participant may not direct more than 20% of any contribution to the HEI Common Stock Fund. Second, participants and beneficiaries are prohibited from making transfers or exchanges from other investment alternatives into the HEI Common Stock Fund if the transfer or exchange would cause the participant’s or beneficiary’s investment in the HEI Common Stock Fund to exceed 20% of the participant’s or beneficiary’s total account balance.

h. Distributions

Distributions from participants’ accounts are generally made upon retirement, death, permanent disability, or other termination of employment. Distributions may be made in a single lump sum, or a retired or terminated participant may elect to receive partial distributions (once per year) until the participant’s account has been distributed in full or the participant elects to receive a single-sum distribution of the remaining balance. Retired participants may also elect to receive required minimum distributions from the Plan.

Account balances of $5,000 or less are automatically distributed upon termination of employment. Any automatic distribution of more than $1,000 (but not more than $5,000) is made in the form of a direct rollover to an Individual Retirement Account (“IRA”) designated by the Administrative Committee, unless the participant requests a cash distribution or a direct rollover to an IRA or tax-qualified retirement plan of the participant’s choosing.

Distributions from the HEI Common Stock Fund are in the form of HEI common stock or, if the participant so elects, cash (with any fractional shares paid in cash).

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American Savings Bank

401(k) Plan

Notes to Financial Statements

December 31, 2016 and 2015

The participant’s account will be reduced by any unpaid loan balance at the time of distribution. However, unless rolled over, the balance of the unpaid loan will be taxable to the participant.

i. Death Benefits

Upon the death of a participant, the full value in the participant’s account is payable as a death benefit to the participant’s designated beneficiary.

j. Withdrawals While Employed

Prior to termination of employment, a participant may request a withdrawal from his or her account in the event of hardship. A participant who receives a hardship withdrawal is prohibited from making additional salary deferral contributions (pre-tax or Roth) to the Plan for six months following the hardship withdrawal.

Participants who elect to invest portions of their account balances in the HEI Common Stock Fund (the ESOP component of the Plan) may elect to receive cash distributions of periodic dividends attributable to such investments or may elect to have such dividends reinvested.

A participant who is age 59½ or older may elect to receive an in-service distribution from his or her vested account balance once per year.

k. Notes Receivable From Participants

Participants may borrow from their accounts. All loans must be on commercially reasonable terms and be evidenced by a note. The minimum note amount is $1,000, and the maximum amount of all notes under the Plan is limited to the lesser of $50,000, reduced by the highest outstanding note balance during the prior 12 months minus the outstanding note balance from the Plan on the date the note is made, or 50% of the participant’s account balance. The term of a note generally may not exceed 5 years, except that a note used to purchase a principal residence may have a term of up to 15 years. The interest rate for 2016 was 2 percentage points above the Federal Reserve prime rate of interest as of the last working day of the month preceding the month the note was made. All outstanding notes are collateralized by 50% of the participant’s vested account balance, determined when a note is approved. No allowance for credit losses has been recorded as of December 31, 2016 or 2015. If a participant ceases to make note repayments and the Plan Administrator deems the participant loan to be in default, the default will be a deemed distribution. However, the participant’s account will not be reduced until a distributable event occurs under the terms of the Plan. Notes outstanding at December 31, 2016 bear interest at various rates ranging from 3.50% to 9.25%. Principal and interest payments are made ratably through payroll deductions. Participants are allowed up to two notes outstanding at any one time from the Plan.

l. Vesting

Participants are 100% vested in their account balances at all times.

2. Summary of Significant Accounting Policies

a. Basis of Accounting

The Plan prepares its financial statements under the accrual method of accounting.

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American Savings Bank

401(k) Plan

Notes to Financial Statements

December 31, 2016 and 2015

b. Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires the Plan Administrator to make estimates and assumptions that affect the reported amounts of assets, liabilities, and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

c. Investment Valuation and Income Recognition

The Plan’s investments are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The PIC is responsible for the Plan’s valuation principles and utilizes information provided by the Plan’s investment advisers and custodian. See Note 3 for a discussion of fair value measurements. Net appreciation or depreciation in the fair value of investments includes realized and unrealized changes in the values of investments bought, sold, and held during the year.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

d. Notes Receivable From Participants

Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Interest income is recorded on the accrual basis. Related fees are recorded as administrative expenses and are expensed when they are incurred. If a participant ceases to make loan repayments and the plan administrator deems the participant loan to be in default, the participant loan balance is treated as a deemed distribution and is recorded in distributions to participants.

e. Payment of Benefits

The Plan records benefits when they are paid.

f. Expenses

Certain expenses of maintaining the Plan, such as legal, audit, consulting and recordkeeping fees, are paid directly by the Bank and are excluded from these financial statements. Fees related to the administration of notes receivable from participants and distributions are charged directly to the participant’s account and are included in administrative expenses. Investment related expenses are included in net appreciation in fair value of investments.

g. Risks and Uncertainties

The Plan may invest in various types of investment securities. Investment securities are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and such changes could materially affect the amounts reported in the Statements of Net Assets Available for Benefits.

Approximately 10% of the Plan’s net assets at both December 31, 2016 and 2015, consisted of HEI common stock in the HEI Common Stock Fund.

h. Recent Accounting Standards

In May 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-07: Disclosures for Investments in Certain Entities that Calculate Net

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American Savings Bank

401(k) Plan

Notes to Financial Statements

December 31, 2016 and 2015

Asset Value per Share (or Its Equivalent). This guidance simplifies disclosure requirements relating to investments for which fair value is measured using the net asset value per share, or its equivalent. The update removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. Investments that calculate net asset value per share (or its equivalent), but for which the practical expedient is not applied, will continue to be included in the fair value hierarchy. The update removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. A reporting entity should continue to disclose information on investments for which fair value is measured at net asset value as a practical expedient to help users understand the nature and risks of the investments and whether the investments, if sold, are probable of being sold at amounts different from net asset value. The Plan expects to adopt ASU 2015-07 in 2017, and will be making the appropriate disclosures in the Plan’s financial statements for 2017.

In February 2017, the FASB issued ASU No. 2017-06, Employee Benefit Plan Master Trust Reporting, which removes the requirement to disclose the percentage interest in the master trust for plans with divided interests and requires that all plans disclose the dollar amount of their interest in each of those general types of investments. ASU No. 2017-06 also requires all plans to disclose (1) their master trust’s other asset and liability balances and (2) the dollar amount of the plan’s interest in each of those balances. The Plan expects to adopt the amendments in ASU No. 2017-06 in the first quarter of 2019 retrospectively and has not yet determined the impact of adoption.

i. Subsequent Events

The Plan Administrator has evaluated subsequent events through the date the financial statements were issued.

3. Fair Value Measurements

a. Fair Value of Financial Instruments

The following is a description of the valuation methodologies used for assets measured at fair value:

Mutual Funds

Valued using a market approach based on the daily closing price as reported by the fund. Mutual funds held by the Plan are open-end mutual funds that are registered with the SEC. These funds are required to publish their daily Net Asset Value (“NAV”) and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded.

HEI Common Stock Fund

Invests primarily in shares of HEI common stock with a fractional amount invested in interest bearing cash equivalents. The HEI Common Stock Fund is valued at NAV as a practical expedient using the market approach based on: (1) the closing price of the underlying HEI common stock held by the HEI Common Stock Fund is valued at the closing price reported on the last business day of the Plan year reported on the New York Stock Exchange and (2) the underlying cash equivalents include investments in money market mutual funds valued at the NAV. The HEI Common Stock Fund trades daily without any prior redemption notice period.

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American Savings Bank

401(k) Plan

Notes to Financial Statements

December 31, 2016 and 2015

Notes Receivable from Participants

The fair value of notes receivable from participants was estimated using a discounted cash flow analysis utilizing interest rates currently offered for new participant loans, and approximated its carrying value.

Employer Contributions Receivable

The carrying amounts of the employer contributions receivable approximated fair value due to the short-term nature of these financial instruments.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values, which may be materially affected by market conditions and other circumstances. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

b. Fair Value Hierarchy

Accounting Standards Codification 820, Fair Value Measurements and Disclosures, provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The following are the three levels of the fair value hierarchy under this standard:

Level 1 Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Plan has the ability to access at the measurement date.

Level 2 Inputs are quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3 Inputs are unobservable inputs for the asset or liability.

The level in the fair value hierarchy within which a fair measurement in its entirety falls is based on the lowest level of input that is significant to the fair value measurement in its entirety.

4. Interest in Master Trust

All of the invested assets of the ASB 401(k) Plan are held together with all of the invested assets of the Hawaiian Electric Industries Retirement Savings Plan (“HEIRS Plan”) in a master trust (the “Master Trust”) pursuant to a Master Trust Agreement between HEI and ASB and Fidelity Management Trust Company (the “Trustee”). Each participating plan has an undivided interest in the Master Trust determined by the specific interest each participant has in their account.

The value of the Plan’s interest in the Master Trust is based on the beginning of the year value of the Plan’s interest in the Master Trust plus actual contributions, transfers and allocated investment

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American Savings Bank

401(k) Plan

Notes to Financial Statements

December 31, 2016 and 2015

income or loss less actual distributions and allocated administrative expenses. At both December 31, 2016 and 2015, the Plan’s interest in the assets of the Master Trust was approximately 19%. Investment income and administrative expenses relating to the Master Trust are allocated to the individual plans based upon the daily valuation of the balances invested by each plan.

The assets of the Master Trust, including activities of the ASB 401(k) Plan and HEIRS Plan, and the Plan’s interest in the investments and notes receivable from participants were as follows:

December 31	2016			2015

Investments
Mutual funds	$	486,617,815		$	451,825,542
HEI Common Stock Fund	83,012,491			75,212,413
Total investments	569,630,306			527,037,955
Notes receivable from participants	10,329,773			10,851,986
Participant contributions receivable	508,566			508,126
Employer contributions receivable	1,879,476			1,811,636
Due from Fidelity	13,416			12,088
Accounts payable	(8,774		)	(12,689		)
Total net assets	$	582,352,763		$	540,209,102
Plan interest in Master Trust
Investments	$	108,710,691		$	98,842,813
Notes receivable from participants	3,194,024			3,341,432

The income of the Master Trust and the Plan’s interest in the income of the Master Trust were as follows:

Year ended December 31	2016

Net appreciation in fair value of investments
Mutual funds	$	15,993,661
HEI Common Stock Fund	10,466,957
Dividends and interest	14,031,271
Total investment income	$	40,491,889
Interest from notes receivable from participants	$	535,323
Plan interest in Master Trust
Investment income	$	7,598,681
Interest from notes receivable from participants	158,082

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American Savings Bank

401(k) Plan

Notes to Financial Statements

December 31, 2016 and 2015

The Master Trust’s investments at fair value by level within the fair value hierarchy and the Plan’s percentage interest in each investment type were as follows:

	Quoted Prices
	in Active		Significant
	Markets for		Other
	Identical		Observable
	Assets		Inputs				Plan’s
December 31, 2016	(Level 1)		(Level 2)		Total		Interest

Investments
Mutual funds	$	486,617,815	$	—	$	486,617,815	20	%
HEI Common Stock Fund	—		83,012,491		83,012,491		14	%
	$	486,617,815	$	83,012,491	$	569,630,306

	Quoted Prices
	in Active		Significant
	Markets for		Other
	Identical		Observable
	Assets		Inputs				Plan’s
December 31, 2015	(Level 1)		(Level 2)		Total		Interest

Investments
Mutual funds	$	451,825,542	$	—	$	451,825,542	20	%
HEI Common Stock Fund	—		75,212,413		75,212,413		14	%
	$	451,825,542	$	75,212,413	$	527,037,955

Transfers between levels are recognized at the actual date of the event or circumstance that caused the transfer. There were no transfers between levels of the fair value hierarchy during 2016.

There were no Level 3 investments held by the Master Trust as of December 31, 2016 and 2015.

The Trustee has the power and authority to borrow funds from a bank not affiliated with the Trustee in order to provide sufficient liquidity to process Plan transactions in the HEI Common Stock Fund in a timely fashion; provided that the cost of such borrowing shall be allocated to the HEI Common Stock Fund. There were no such transactions for the Plan during 2016.

5. Plan Termination

Although it has not expressed any intent to do so, ASB has the right under the Plan to discontinue its contributions at any time or to terminate the Plan.

6. Federal Income Taxes

The Plan and Master Trust are qualified under the Internal Revenue Code (the “Code”) and are exempt from federal income taxes under Sections 401(a) and 501(a) of the Code. On January 31,

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American Savings Bank

401(k) Plan

Notes to Financial Statements

December 31, 2016 and 2015

2013, the ASB Plan document, as restated effective January 1, 2013, was submitted to the Internal Revenue Service (“IRS”) for a determination that the language of the Plan continues to meet the federal tax law requirements applicable to it. On October 22, 2013, the IRS issued a favorable determination letter covering the Plan restatement. This latest determination letter does not cover amendments made to the Plan since January 1, 2013. ASB and its outside ERISA/tax counsel believe that the amendments made since January 1, 2013 meet applicable federal tax law requirements.

ASB is not aware of any Code or ERISA violations that would jeopardize the Plan’s tax exempt status and, as of December 31, 2016 and 2015, has concluded that there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements. The Plan is periodically audited by the IRS and the U.S. Department of Labor (“DOL”); however, there are currently no audits in progress. ASB believes that the Plan is no longer subject to income tax examinations for years prior to 2013.

7. Related-Party Transactions

Certain Plan investments represent shares of mutual funds managed by Fidelity Management and Research Company (“FMR”). Fidelity Management Trust Company (“FMTC”), an affiliate of FMR, is the Trustee of the Plan, and therefore, the transactions with FMR qualify as party-in-interest transactions for which a prohibited transaction exemption exists.

Effective January 1, 2012, a revenue credit program (“RCP”) for the Plan was implemented by FMTC under which credits are provided for the payment of expenses. Certain legal and consulting fees incurred by the Plan are included as administrative expenses in the Statement of Changes in Net Assets Available for Benefits because they are paid through the RCP. During the year ended December 31, 2016, the RCP credits used to pay expenses amounted to approximately $8,000. During the year ended December 31, 2016, fees for recordkeeping services provided by Fidelity Investments Institutional Operations Company, Inc., an affiliate of both FMR and FMTC, amounted to approximately $16,100, and were paid by ASB.

Plan participants may also elect to invest in the HEI Common Stock Fund, which consists of shares of HEI common stock and short-term liquid investments. Since ASB is a wholly owned, indirect subsidiary of HEI, investments in the HEI Common Stock Fund are party-in-interest transactions under the prohibited transaction rules of ERISA for which a statutory exemption exists. During the year ended December 31, 2016, the Master Trust made purchases of 295,296 shares of HEI common stock for a total purchase price of $7.7 million and sales of 393,335 shares of HEI common stock for total sales proceeds of $10.4 million.

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American Savings Bank 401(k) Plan

EIN: 99-0253492, Plan: 004

Schedule H, Line 4i

Schedule of Assets (Held at End of Year)

December 31, 2016

		(c)
	(b)	Description of Investment Including	(e)
	Identity of Issue, Borrower,	Maturity Date, Rate of Interest,	Current
(a)	Lessor, or Similar Party	Collateral, Par, or Maturity Value	Value

*	Plan interest in the Master Trust		$	108,710,691
*	Participant Loans	408 loans with interest rates from 3.50% to 9.25%, maturing 2017 through 2031	3,194,024
			$	111,904,715

* Party in interest

NOTE:

Participant loans are legally held by the Hawaiian Electric Industries Retirement Savings Plan and American Savings Bank 401(k) Plan Master Trust (“DFE”), however Form 5500 Instructions and the Department of Labor’s electronic filing system require the reporting of participant loans at the individual plan level. As such, the participant loans and attendant interest are reported in the individual plans’ Form 5500 and not in the DFE’s Form 5500.

	Page(s)

Reports of Independent Registered Public Accounting Firms	1-2

Financial Statements

Statements of Net Assets Available for Benefits December 31, 2016 and 2015	3

Statement of Changes in Net Assets Available for Benefits Year Ended December 31, 2016	4

Notes to Financial Statements December 31, 2016 and 2015	5-14

Supplemental Schedule

Schedule H, Line 4i — Schedule of Assets (Held at End of Year) at December 31, 2016	15

Exhibits

Exhibit 23.1 — Consent of Independent Registered Public Accounting Firm (Accuity LLP)	16

Exhibit 23.2 — Consent of Independent Registered Public Accounting Firm (PricewaterhouseCoopers LLP)	17