Hawaiian Electric Industries (HE) 8-K Regulation FD Disclosure

HEI Exhibit 99

[HEI logo]

2009 Statistical Supplement and Utility Forecast

Shelee M.T. Kimura

Manager, Investor Relations and Strategic Planning

Phone: 808-543-7384

Fax: 808-203-1164

E-mail: skimura@hei.com

Forward-Looking Statements

This report and other presentations made by Hawaiian Electric Industries, Inc. (HEI) and Hawaiian Electric Company, Inc. (HECO) and their subsidiaries 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 (collectively, the Company), 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.

Risks, uncertainties and other important factors that could cause actual results to differ materially from those in forward-looking statements and from historical results include, but are not limited to, the following:

·international, national and local economic conditions, including the state of the Hawaii tourism and construction industries, the strength or weakness of the Hawaii and continental U.S. real estate markets (including the fair value and/or the actual performance of collateral underlying loans held by American Savings Bank, F.S.B. (ASB), which could result in higher loan loss provisions and write-offs), decisions concerning the extent of the presence of the federal government and military in Hawaii, and the implications and potential impacts of current capital and credit market conditions and federal and state responses to those conditions, such as the Emergency Economic Stabilization Act of 2008 and the American Economic Recovery and Reinvestment Act of 2009;

·weather and natural disasters, such as hurricanes, earthquakes, tsunamis, lightning strikes and the potential effects of global warming (such as more severe storms and rising sea levels);

·global developments, including terrorist acts, the war on terrorism, continuing U.S. presence in Iraq and Afghanistan, potential conflict or crisis with North Korea or in the Middle East, Iran’s nuclear activities and potential H1N1 and avian flu pandemics;

·the timing and extent of changes in interest rates and the shape of the yield curve;

·the ability of the Company to access credit markets to obtain commercial paper and other short-term and long-term debt financing (including lines of credit) and to access capital markets to issue HEI common stock under volatile and challenging market conditions, and the cost of such financings, if available;

·the risks inherent in changes in the value of and market for securities available for sale and in the value of pension and other retirement plan assets;

·changes in laws, regulations, market conditions and other factors that result in changes in assumptions used to calculate retirement benefits costs and funding requirements and the fair value of ASB used to test goodwill for impairment;

·the impact of potential legislative and regulatory changes increasing oversight of and reporting by banks in response to the recent financial crisis and federal bailout of financial institutions;

·increasing competition in the electric utility and banking industries (e.g., increased self-generation of electricity may have an adverse impact on HECO’s revenues and increased price competition for deposits, or an outflow of deposits to alternative investments, may have an adverse impact on ASB’s cost of funds);

·the implementation of the Energy Agreement with the State of Hawaii and Consumer Advocate (Energy Agreement) setting forth the goals and objectives of a Hawaii Clean Energy Initiative (HCEI), revenue decoupling and the fulfillment by the utilities of their commitments under the Energy Agreement (given the Public Utilities Commission of the State of Hawaii (PUC) approvals needed; the PUC’s potential delay in considering HCEI-related costs; reliance by the Company on outside parties like the state, independent power producers (IPPs) and developers; potential changes in political support for the HCEI; and uncertainties surrounding wind power, the proposed undersea cable, biofuels, environmental assessments and the impacts of implementation of the HCEI on future costs of electricity);

·capacity and supply constraints or difficulties, especially if generating units (utility-owned or IPP-owned) fail or measures such as demand-side management (DSM), distributed generation (DG), combined heat and power (CHP) or other firm capacity supply-side resources fall short of achieving their forecasted benefits or are otherwise insufficient to reduce or meet peak demand;

·the risk to generation reliability when generation peak reserve margins on Oahu are strained;

·fuel oil price changes, performance by suppliers of their fuel oil delivery obligations and the continued availability to the electric utilities of their energy cost adjustment clauses (ECACs);

·the impact of fuel price volatility on customer satisfaction and political and regulatory support for the utilities;

·the risks associated with increasing reliance on renewable energy, as contemplated under the Energy Agreement, including the availability and cost of non-fossil fuel supplies for renewable generation and the operational impacts of adding intermittent sources of renewable energy to the electric grid;

·the ability of IPPs to deliver the firm capacity anticipated in their power purchase agreements (PPAs);

·the ability of the electric utilities to negotiate, periodically, favorable fuel supply and collective bargaining agreements;

·new technological developments that could affect the operations and prospects of HEI and its subsidiaries (including HECO and its subsidiaries and ASB and its subsidiaries) or their competitors;

·federal, state, county and international governmental and regulatory actions, such as changes in laws, rules and regulations applicable to HEI, HECO, ASB and their subsidiaries (including changes in taxation, regulatory changes resulting from the HCEI, environmental laws and regulations, the regulation of greenhouse gas emissions (GHG), healthcare reform, governmental fees and assessments (such as Federal Deposit Insurance Corporation assessments), potential carbon “cap and trade” legislation that may fundamentally alter costs to produce electricity and accelerate the move to renewable generation, and the potential elimination of the Office of Thrift Supervision (OTS) and the grandfathering provisions of the Gramm-Leach-Bliley Act of 1999 (Gramm Act) that have permitted HEI to own ASB);

·decisions by the PUC in rate cases (including the risks of delays in the timing of decisions, adverse changes in final decisions from interim decisions and the disallowance of project costs);

·decisions in other proceedings by the PUC and by other agencies and courts on land use, environmental and other permitting issues (such as required corrective actions, restrictions and penalties that may arise, for example with respect to environmental conditions or renewable portfolio standards (RPS));

·enforcement actions by the OTS and other governmental authorities (such as consent orders, required corrective actions, restrictions and penalties that may arise, for example, with respect to compliance deficiencies under banking regulations or with respect to capital adequacy);

·increasing operation and maintenance expenses and investment in infrastructure for the electric utilities, resulting in the need for more frequent rate cases;

·the ability of ASB to execute its performance improvement project, including the reduction of expenses through the conversion to the Fiserv Inc. bank platform system;

·the risks associated with the geographic concentration of HEI’s businesses and ASB’s loans, ASB’s concentration in a single product type (first mortgages) and ASB’s significant credit relationships (i.e., concentrations of large loans and/or credit lines with certain customers);

·changes in accounting principles applicable to HEI, HECO, ASB and their subsidiaries, including the adoption of International Financial Reporting Standards (IFRS) or new U.S. accounting standards, the potential discontinuance of regulatory accounting and the effects of potentially required consolidation of variable interest entities or required capital lease accounting for PPAs with IPPs;

·changes by securities rating agencies in their ratings of the securities of HEI and HECO and the results of financing efforts;

·faster than expected loan prepayments that can cause an acceleration of the amortization of premiums on loans and investments and the impairment of mortgage servicing assets of ASB;

·changes in ASB’s loan portfolio credit profile and asset quality which may increase or decrease the required level of allowance for loan losses and charge-offs;

·changes in ASB’s deposit cost or mix which may have an adverse impact on ASB’s cost of funds;

·the final outcome of tax positions taken by HEI, HECO, ASB and their subsidiaries;

·the risks of suffering losses and incurring liabilities that are uninsured; and

·other risks or uncertainties described elsewhere in this report and in other reports (e.g., Item 1A. Risk Factors) previously and subsequently filed by HEI and/or HECO with the Securities and Exchange Commission (SEC).

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, HECO, ASB 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.

SELECTED FINANCIAL INFORMATION

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited

Years ended December 31	2009			2008			2007			2006			2005
(dollars in thousands, except per share amounts)
Revenues	$	2,309,590		$	3,218,920		$	2,536,418		$	2,460,904		$	2,215,564
Net income (loss) for common stock
Continuing operations	$	83,011		$	90,278		$	84,779		$	108,001		$	127,444
Discontinued operations	—			—			—			—			(755		)
	$	83,011		$	90,278		$	84,779		$	108,001		$	126,689
Basic earnings (loss) per common share
Continuing operations	$	0.91		$	1.07		$	1.03		$	1.33		$	1.58
Discontinued operations	—			—			—			—			(0.01		)
	$	0.91		$	1.07		$	1.03		$	1.33		$	1.57
Diluted earnings per common share	$	0.91		$	1.07		$	1.03		$	1.33		$	1.56
Dividends per common share	$	1.24		$	1.24		$	1.24		$	1.24		$	1.24
Operating income (loss)
Electric utility	$	169,671		$	191,359		$	130,585		$	166,718		$	161,703
Bank	31,764			26,952			84,010			88,558			104,901
Other	(13,771		)	(14,154		)	(10,863		)	(15,880		)	4,818
	$	187,664		$	204,157		$	203,732		$	239,396		$	271,422
Assets *
Electric utility	$	3,978,392		$	3,856,109		$	3,423,888		$	3,063,134		$	3,081,460
Bank	4,940,985			5,437,120			6,861,493			6,808,499			6,835,335
Other	5,625			1,853			8,535			19,576			34,782
	$	8,925,002		$	9,295,082		$	10,293,916		$	9,891,209		$	9,951,577
Capital structure * **
Short-term borrowings - other than bank	$	41,989		$	—		$	91,780		$	176,272		$	141,758
Long-term debt, net - other than bank	1,364,815			1,211,501			1,242,099			1,133,185			1,142,993
Noncontrolling interest: cumulative preferred stock of subsidiaries	34,293			34,293			34,293			34,293			34,293
Common stock equity	1,441,648			1,389,454			1,275,427			1,095,240			1,216,630
	$	2,882,745		$	2,635,248		$	2,643,599		$	2,438,990		$	2,535,674
Capital structure ratios * **
Short-term borrowings - other than bank	1.5		%	—		%	3.5		%	7.2		%	5.6		%
Long-term debt, net - other than bank	47.3			46.0			47.0			46.5			45.1
Noncontrolling interest: cumulative preferred stock of subsidiaries	1.2			1.3			1.3			1.4			1.3
Common stock equity	50.0			52.7			48.2			44.9			48.0
	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%
Key financial ratios
Market price to book value per common share *	134		%	144		%	149		%	202		%	172		%
Price earnings ratio ***	23.0		x	20.7		x	22.1		x	20.4		x	16.4		x
Return on average common equity	5.9		%	6.8		%	7.2		%	9.3		%	10.4		%
Return on average common equity - continuing operations ****	5.9		%	6.8		%	7.2		%	9.3		%	10.5		%
Indicated annual yield *	5.9		%	5.6		%	5.4		%	4.6		%	4.8		%
Dividend payout ratio	137		%	116		%	120		%	93		%	79		%
Dividend payout ratio - continuing operations	137		%	116		%	120		%	93		%	78		%

*	At December 31. (Note: Stockholders’ equity since December 31, 2006 includes a charge to accumulated other comprehensive income relating to retirement benefits pursuant to FASB Accounting Standards CodificationTM (ASC) Topic 715, as adjusted by the impact of decisions of the PUC. See Note 8, “Retirement benefits,” of HEI’s “Notes to Consolidated Financial Statements” incorporated in HEI’s 2009 Form 10-K.)
**	Excludes ASB’s deposit liabilities and other borrowings.
***	Calculated using December 31 market price per common share divided by basic earnings per common share from continuing operations.
****	Net income from continuing operations divided by average common equity.

See “Commitments and contingencies” in Note 3 and “Balance sheet restructure” and “Private-issue mortgage-related securities” in Note 4 of HEI’s “Notes to Consolidated Financial Statements” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included or incorporated in HEI’s Form 10-K for discussions of certain contingencies that could adversely affect future results of operations and factors that affected reported results of operations.

On December 8, 2008, HEI completed the issuance and sale of 5 million shares of HEI’s common stock (without par value) under an omnibus shelf registration statement. The net proceeds from the sale amounted to approximately $110 million and were primarily used to repay HEI’s outstanding short-term debt and to make loans to HECO (principally to permit HECO to repay its short-term debt).

1

CONSOLIDATED BALANCE SHEETS

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited

December 31	2009			2008			2007			2006			2005
(in thousands)
ASSETS
Cash and equivalents	$	502,443		$	182,903		$	145,855		$	177,630		$	151,513
Federal funds sold	1,479			532			64,000			79,671			57,434
Accounts receivable and unbilled revenues, net	241,116			300,666			294,447			248,639			249,473
Available-for-sale investment and mortgage-related securities	432,881			657,717			2,140,772			2,367,427			2,629,351
Investment in stock of Federal Home Loan Bank of Seattle	97,764			97,764			97,764			97,764			97,764
Loans receivable, net	3,670,493			4,206,492			4,101,193			3,780,461			3,566,834
Property, plant and equipment, net	3,088,611			2,907,376			2,743,410			2,647,490			2,542,776
Regulatory assets	426,862			530,619			284,990			112,349			110,718
Other	381,163			328,823			338,405			296,698			462,634
Goodwill, net	82,190			82,190			83,080			83,080			83,080
	$	8,925,002		$	9,295,082		$	10,293,916		$	9,891,209		$	9,951,577
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Accounts payable	$	186,994		$	183,584		$	202,299		$	165,505		$	183,336
Deposit liabilities	4,058,760			4,180,175			4,347,260			4,575,548			4,557,419
Short-term borrowings - other than bank	41,989			—			91,780			176,272			141,758
Other bank borrowings	297,628			680,973			1,810,669			1,568,585			1,622,294
Long-term debt, net - other than bank	1,364,815			1,211,501			1,242,099			1,133,185			1,142,993
Deferred income taxes	188,875			143,308			155,337			106,780			207,997
Regulatory liabilities	288,214			288,602			261,606			240,619			219,204
Contributions in aid of construction	321,544			311,716			299,737			276,728			256,263
Other	700,242			871,476			573,409			518,454			369,390
	7,449,061			7,871,335			8,984,196			8,761,676			8,700,654
Stockholders’ equity
Common stock	1,265,157			1,231,629			1,072,101			1,028,101			1,018,966
Retained earnings	184,213			210,840			225,168			242,667			235,394
Accumulated other comprehensive loss, net of income tax benefits	(7,722		)	(53,015		)	(21,842		)	(175,528		)	(37,730		)
Common stock equity	1,441,648			1,389,454			1,275,427			1,095,240			1,216,630
Preferred stock	—			—			—			—			—
Noncontrolling interest: cumulative preferred stock of subsidiaries - not subject to mandatory redemption	34,293			34,293			34,293			34,293			34,293
	1,475,941			1,423,747			1,309,720			1,129,533			1,250,923
	$	8,925,002		$	9,295,082		$	10,293,916		$	9,891,209		$	9,951,577

Note: See HEI’s “Notes to Consolidated Financial Statements” included or incorporated in HEI’s Form 10-K for each year.

2

CONSOLIDATED STATEMENTS OF INCOME

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited

Years ended December 31	2009			2008			2007			2006			2005
(in thousands, except per share amounts)
Revenues
Electric utility	$	2,035,009		$	2,860,350		$	2,106,314		$	2,054,890		$	1,806,384
Bank	274,719			358,553			425,495			408,365			387,910
Other	(138		)	17			4,609			(2,351		)	21,270
	2,309,590			3,218,920			2,536,418			2,460,904			2,215,564
Expenses
Electric utility	1,865,338			2,668,991			1,975,729			1,888,172			1,644,681
Bank	242,955			331,601			341,485			319,807			283,009
Other	13,633			14,171			15,472			13,529			16,452
	2,121,926			3,014,763			2,332,686			2,221,508			1,944,142
Operating income (loss)
Electric utility	169,671			191,359			130,585			166,718			161,703
Bank	31,764			26,952			84,010			88,558			104,901
Other	(13,771		)	(14,154		)	(10,863		)	(15,880		)	4,818
	187,664			204,157			203,732			239,396			271,422
Interest expense - other than on deposit liabilities and other bank borrowings	(76,330		)	(76,142		)	(78,556		)	(75,678		)	(75,309		)
Allowance for borrowed funds used during construction	5,268			3,741			2,552			2,879			2,020
Allowance for equity funds used during construction	12,222			9,390			5,219			6,348			5,105
Income from continuing operations before income taxes	128,824			141,146			132,947			172,945			203,238
Income taxes	43,923			48,978			46,278			63,054			73,900
Income from continuing operations	84,901			92,168			86,669			109,891			129,338
Less net income attributable to noncontrolling interest-preferred stock of subsidiaries	1,890			1,890			1,890			1,890			1,894
Income from continuing operations for common stock	83,011			90,278			84,779			108,001			127,444
DIscontinued operations - loss on disposal, net of income taxes	—			—			—			—			(755		)
Net income for common stock	$	83,011		$	90,278		$	84,779		$	108,001		$	126,689
Basic earnings (loss) per common share
Continuing operations	$	0.91		$	1.07		$	1.03		$	1.33		$	1.58
Discontinued operations	—			—			—			—			(0.01		)
	$	0.91		$	1.07		$	1.03		$	1.33		$	1.57
Diluted earnings per common share	$	0.91		$	1.07		$	1.03		$	1.33		$	1.56
Dividends per common share	$	1.24		$	1.24		$	1.24		$	1.24		$	1.24
Weighted-average number of common shares outstanding	91,396			84,631			82,215			81,145			80,828
Adjusted weighted-average shares	91,516			84,720			82,419			81,373			81,200

Note: See HEI’s “Notes to Consolidated Financial Statements” included or incorporated in HEI’s Form 10-K for each year.

3

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY INFORMATION

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited

Years ended December 31	2009			2008			2007			2006			2005
(in thousands)
Balance, January 1	$	1,423,747		$	1,309,720		$	1,129,533		$	1,250,923		$	1,245,238
Comprehensive income:
Net income	84,901			92,168			86,669			109,891			128,583
Net unrealized gains (losses) on securities:
Net unrealized gains (losses) on securities arising during the period, net of taxes	12,938			(30,124		)	18,087			2,059			(29,335		)
Less: reclassification adjustment for net realized losses (gains) on securities included in net income, net of taxes	28,596			15,142			(668		)	(1,045		)	(105		)
Retirement benefit plans:
Net transition asset arising during the period, net of taxes	6,549			—			—			—			—
Prior service credit arising during the period, net of taxes	1,446			992			10,584			—			—
Net gains (losses) arising during the period, net of taxes	64,547			(175,240		)	17,825			—			—
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	10,754			5,801			8,694			—			—
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory asset, net of taxes	(75,756		)	152,256			(17,282		)	—			—
Less: reclassification adjustment for curtailment gain included in net income, net of taxes	—			—			(5,305		)	—			—
Minimum pension liability adjustment, net of taxes	—			—			—			1,254			(147		)
Comprehensive income	133,975			60,995			118,604			112,159			98,996
Adjustment to initially apply PUC D&Os related to retirement benefit plans, net of taxes	—			—			121,751			—			—
Adjustment to initially apply FIN 48	—			—			(228		)	—			—
Adjustment to initially apply SFAS No. 158, net of tax benefits	—			—			—			(140,066		)	—
Issuance of common stock:
Common stock offering	—			115,000			—			—			—
Dividend reinvestment and stock purchase plan	27,701			34,607			34,443			—			—
Retirement savings and other plans	4,771			15,267			10,804			10,270			6,095
Expenses and other, net	1,056			(5,346		)	(1,247		)	(1,135		)	2,781
Common stock dividends	(113,419		)	(104,606		)	(102,050		)	(100,728		)	(100,293		)
Preferred stock dividends	(1,890		)	(1,890		)	(1,890		)	(1,890		)	(1,894		)
Balance, December 31	$	1,475,941		$	1,423,747		$	1,309,720		$	1,129,533		$	1,250,923

Note: See HEI’s “Notes to Consolidated Financial Statements” included or incorporated in HEI’s Form 10-K for each year.

4

CONSOLIDATED CAPITALIZATION

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited

December 31	2009			2008			2007			2006			2005
(dollars in thousands, except par values)
Short-term borrowings - other than bank (1)	$	41,989		$	—		$	91,780		$	176,272		$	141,758
Long-term debt - other than bank (1)
Long-term debt of electric utility subsidiaries (2)	1,057,815			904,501			885,099			766,185			765,993
HEI, medium-term notes, Series B 6.545 - 7.13% due in various years through 2012	7,000			7,000			7,000			17,000			27,000
HEI, medium-term notes, Series C 6.51% due in 2014	100,000			100,000			100,000			100,000			100,000
HEI, medium-term notes, Series C 7.56% paid in 2006	—			—			—			—			100,000
HEI, medium-term notes, Series D 4.00% paid in 2008	—			—			50,000			50,000			50,000
HEI, medium-term notes, Series D 5.25% due in 2013	50,000			50,000			50,000			50,000			50,000
HEI, medium-term notes, Series D 4.23% due in 2011	50,000			50,000			50,000			50,000			50,000
HEI, medium-term notes, Series D 6.141% due in 2011	100,000			100,000			100,000			100,000			—
	1,364,815			1,211,501			1,242,099			1,133,185			1,142,993
Stockholders’ equity
Common stock	1,265,157			1,231,629			1,072,101			1,028,101			1,018,966
Retained earnings	184,213			210,840			225,168			242,667			235,394
Accumulated other comprehensive income (loss)	(7,722		)	(53,015		)	(21,842		)	(175,528		)	(37,730		)
	1,441,648			1,389,454			1,275,427			1,095,240			1,216,630
Preferred stock	—			—			—			—			—
Noncontrolling interest: cumulative preferred stock of subsidiaries - not subject to mandatory redemption	34,293			34,293			34,293			34,293			34,293
Total capitalization	$	2,882,745		$	2,635,248		$	2,643,599		$	2,438,990		$	2,535,674

LONG-TERM DEBT MATURITIES

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited

(in thousands)	2010		2011		2012		2013		2014		Thereafter		Total
Long-term debt - other than bank (1)
Electric utilities	$	—	$	—	$	57,500	$	—	$	11,400	$	988,915	$	1,057,815
HEI	—		150,000		7,000		50,000		100,000		—		307,000
	$	—	$	150,000	$	64,500	$	50,000	$	111,400	$	988,915	$	1,364,815

(1)	Excludes ASB’s deposit liabilities, other borrowings and intercompany borrowings.
(2)	See pages 14 and 15 for additional information.

Note: See HEI’s “Notes to Consolidated Financial Statements” included or incorporated in HEI’s Form 10-K for each year.

5

CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited

Years ended December 31	2009			2008			2007			2006			2005
(in thousands)
Cash flows from operating activities
Net income	$	84,901		$	92,168		$	86,669		$	109,891		$	128,583
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property, plant and equipment	151,282			150,977			147,881			141,184			133,892
Other amortization	5,389			5,085			11,878			10,778			8,269
Provision (reversal of allowance) for loan losses	32,000			10,334			5,700			1,400			(3,100		)
Writedown of utility plant	—			—			11,701			—			—
Gain on pension curtailment	—			(472		)	(8,809		)	—			—
Net losses (gains) on sale of investment and mortgage-related securities	32,034			17,376			(1,109		)	(1,735		)	(175		)
Other-than-temporary impairment on available-for-sale mortgage-related securities	15,444			7,764			—			—			—
Change in deferred income taxes	12,787			5,134			(34,624		)	(12,946		)	43
Change in excess tax benefits from share-based payment arrangements	310			(405		)	(195		)	(1,052		)	—
Allowance for equity funds used during construction	(12,222		)	(9,390		)	(5,219		)	(6,348		)	(5,105		)
Changes in assets and liabilities, net of effects from the disposal of businesses
Decrease (increase) in accounts receivable and unbilled revenues, net	59,550			(6,219		)	(45,808		)	834			(40,940		)
Increase (decrease) in accounts payable	3,410			(18,715		)	36,794			(17,831		)	36,282
Changes in other assets and liabilities	(100,417		)	6,177			14,372			63,767			(37,417		)
Net cash provided by operating activities	284,468			259,814			219,231			287,942			220,332
Cash flows from investing activities
Available-for-sale investment and mortgage-related securities purchased	(297,864		)	(489,264		)	(402,071		)	(343,927		)	(486,432		)
Principal repayments on available-for-sale investment and mortgage-related securities	357,233			610,521			652,083			542,702			727,901
Proceeds from sale of available-for-sale investment and mortgage-related securities	185,134			1,311,596			1,109			61,131			28,039
Proceeds from sale of other investments	—			17			35,920			—			33,809
Net decrease (increase) in loans held for investment	484,960			(92,241		)	(315,786		)	(211,872		)	(304,212		)
Proceeds from sale of real estate acquired in settlement of loans	1,555			—			—			403			624
Capital expenditures	(304,761		)	(282,051		)	(218,297		)	(210,529		)	(223,675		)
Contributions in aid of construction	14,170			17,319			19,011			19,707			21,083
Other	1,199			1,116			5,902			1,708			909
Net cash provided by (used in) investing activities	$	441,626		$	1,077,013		$	(222,129	)	$	(140,677	)	$	(201,954	)

6

CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION (Continued)

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited

Years ended December 31	2009			2008			2007			2006			2005
(in thousands)
Cash flows from financing activities
Net increase (decrease) in deposit liabilities	$	(121,415	)	$	(167,085	)	$	(228,288	)	$	18,129		$	261,247
Net increase (decrease) in short-term borrowings with original maturities of three months or less	41,989			(91,780		)	(84,492		)	35,213			65,147
Proceeds from short-term borrowings with original maturities of greater than three months	—			—			—			44,891			—
Repayment of short-term borrowings with original maturities of greater than three months	—			—			—			(45,590		)	—
Net increase (decrease) in retail repurchase agreements	(3,829		)	(37,142		)	71,205			60,596			18,519
Proceeds from other bank borrowings	310,000			2,592,635			1,338,432			1,331,559			1,068,256
Repayments of other bank borrowings	(689,517		)	(3,682,119		)	(1,166,112		)	(1,446,995		)	(1,265,376		)
Proceeds from issuance of long-term debt	153,186			19,275			242,539			100,000			59,462
Repayment of long-term debt	—			(50,000		)	(136,000		)	(110,000		)	(84,000		)
Change in excess tax benefits from share-based payment arrangements	(310		)	405			195			1,052			—
Net proceeds from issuance of common stock	15,329			136,443			21,072			5,481			3,689
Common stock dividends	(96,843		)	(83,604		)	(81,489		)	(100,673		)	(100,238		)
Preferred stock dividends of noncontrolling interest	(1,890		)	(1,890		)	(1,890		)	(1,890		)	(1,894		)
Other	(12,307		)	1,615			(19,720		)	1,786			(5,015		)
Net cash provided by (used in) financing activities	(405,607		)	(1,363,247		)	(44,548		)	(106,441		)	19,797
Net cash provided by (used in) discontinued operations	—			—			—			7,530			(2,857		)
Net increase (decrease) in cash and equivalents and federal funds sold	320,487			(26,420		)	(47,446		)	48,354			35,318
Cash and equivalents and federal funds sold, January 1	183,435			209,855			257,301			208,947			173,629
Cash and equivalents and federal funds sold, December 31	$	503,922		$	183,435		$	209,855		$	257,301		$	208,947

Note: See HEI’s “Notes to Consolidated Financial Statements” included or incorporated in HEI’s Form 10-K for each year.

7

NET INCOME AND RETURN ON AVERAGE COMMON EQUITY BY COMPANY

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited

Years ended December 31	2009			2008			2007			2006			2005
(dollars in thousands)
Net income (loss) for common stock by company
Electric utilities
HECO	$	53,621		$	54,966		$	32,249		$	49,364		$	41,850
HELCO	15,761			19,641			8,252			6,947			12,623
MECO	10,224			17,792			11,785			18,789			18,505
Renewable Hawaii, Inc.	(11		)	(77		)	(83		)	(153		)	(176		)
Uluwehiokama Biofuels Corp.	(149		)	(347		)	(47		)	—			—
	79,446			91,975			52,156			74,947			72,802
ASB consolidated	21,767		(1)	17,827		(2)	53,107			55,782			64,883
HEI and other	(18,202		)	(19,524		)	(20,484		)	(22,728		)	(10,241		)
Continuing operations	83,011		(1)	90,278		(2)	84,779			108,001			127,444
Discontinued operations	—			—			—			—			(755		)
Consolidated HEI	$	83,011	(1)	$	90,278	(2)	$	84,779		$	108,001		$	126,689
Return on average common equity by company
Electric utilities
HECO	6.7		%	7.6		%	5.0		%	7.9		%	6.5		%
HELCO	6.8			9.3			4.4			3.8			6.7
MECO	4.7			8.4			5.9			9.7			9.6
	6.4			8.0			5.0			7.5			7.1
ASB consolidated	4.5		(1)	3.3		(2)	9.2			10.0			11.7
Consolidated HEI	5.9		%(1)	6.8		%(2)	7.2		%	9.3		%	10.4		%
Consolidated HEI–continuing operations (3)	5.9		%(1)	6.8		%(2)	7.2		%	9.3		%	10.5		%

(1)Includes a $19.3 million after-tax charge related to ASB’s private-issue mortgage-related securities.  Excluding this $19.3 million charge, ASB consolidated net income would have been $41 million and return on average common equity would have been 8.3% and HEI consolidated net income would have been $102 million and return on average common equity would have been 7.2%.

(2)Includes a $35.6 million after-tax charge related to ASB’s balance sheet restructuring in June 2008. Excluding this $35.6 million charge, ASB consolidated net income would have been $53 million and return on average common equity would have been 9.6% and HEI consolidated net income would have been $126 million and return on average common equity would have been 9.3%.

(3)Net income from continuing operations divided by average common equity.

8

STATE OF HAWAII DATA

Unaudited

Years ended December 31, except as noted	2009			2008		2007		2006		2005
POPULATION BY COUNTY (thousands)*
Honolulu	na			905		900		904		900
Hawaii	na			176		173		169		164
Maui	na			144		141		140		139
Kauai	na			63		63		62		61
	1,295			1,288		1,277		1,275		1,264
VISITOR DATA
Visitor arrivals by air (thousands)
Domestic	4,671			4,902		5,583		5,550		5,313
International	1,748			1,811		1,914		1,978		2,103
	6,419			6,713		7,497		7,528		7,416
Visitor arrivals by air, by county (thousands)**
Honolulu	3,974			4,194		4,695		4,688		4,732
Hawaii	1,201			1,321		1,622		1,614		1,522
Maui	1,907			2,129		2,522		2,498		2,346
Kauai	916			1,031		1,299		1,204		1,090
	7,998			8,675		10,138		10,004		9,690
Visitor days (thousands)
Domestic	47,109			49,497		55,100		54,584		52,705
International	13,445			13,633		14,035		14,562		14,983
	60,554			63,130		69,135		69,146		67,688
Visitor expenditures by air (billions)	$	9.9		$	11.2	$	12.6	$	12.2	$	11.7
CONSTRUCTION INDUSTRY DATA (millions)
Value of private building permits authorized***	$	1,999		$	2,907	$	3,585	$	3,770	$	3,492
Contracting tax base	na			$	7,987	$	8,073	$	7,223	$	6,024
FEDERAL GOVERNMENT DATA (millions)
Department of Defense expenditures	na			$	6,107	$	5,467	$	5,379	$	5,015
Other federal agencies expenditures	na			8,902		8,595		8,116		7,684
Total federal government expenditures	na			$	15,009	$	14,062	$	13,495	$	12,699
OTHER DATA
Real gross state product (billions of 2000 $s)	$	49.3	e	$	49.8	$	49.4	$	48.7	$	46.9
Honolulu Consumer Price Index (%)	0.5			4.3		4.8		5.9		3.8
Total wage and salary jobs (thousands)	603.9			625.4		631.4		624.0		608.6
Unemployment rate (average annual %)	7.0			3.9		2.6		2.5		2.7

Sources:  State of Hawaii Data Book 2008 (prior years), Hawaii State Department of Business, Economic Development & Tourism and Hawai’i Tourism Authority

*	Resident population estimates, including military personnel, excluding visitors, as of July 1
**	Visitors visiting more than one county are included in each county’s visitor arrival count. Visitor arrivals by county include domestic and international visitors.
***	Excludes public construction
e	Estimate
na	Not available

9

SELECTED DATA

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited

Years ended December 31	2009		2008		2007		2006		2005
(in thousands)
CAPITAL STRUCTURE *
Short-term borrowings	$	—	$	41,550	$	28,791	$	113,107	$	136,165
Long-term debt, net	1,057,815		904,501		885,099		766,185		765,993
Preferred stock	34,293		34,293		34,293		34,293		34,293
Common stock equity	1,306,408		1,188,842		1,110,462		958,203		1,039,259
	$	2,398,516	$	2,169,186	$	2,058,645	$	1,871,788	$	1,975,710
CAPITAL STRUCTURE RATIOS (%) *
Short-term borrowings	—		1.9		1.4		6.1		6.9
Long-term debt, net	44.1		41.7		43.0		40.9		38.8
Preferred stock	1.4		1.6		1.7		1.8		1.7
Common stock equity	54.5		54.8		53.9		51.2		52.6
	100.0		100.0		100.0		100.0		100.0
KEY FINANCIAL RATIOS (%)
Ratio of earnings to fixed charges (SEC method)	2.99		3.48		2.43		3.14		3.23
Authorized return on rate base **
HECO	8.66		8.66		9.16		9.16		9.16
HELCO	9.14		9.14		9.14		9.14		9.14
MECO	8.83		8.83		8.83		8.83		8.83
Earned return on simple average rate base ***
HECO	6.12		7.05		4.92		6.78		6.20
HELCO	5.70		7.21		6.68		4.47		6.08
MECO	4.99		7.03		5.59		7.21		8.21
Authorized return on simple average common equity **
HECO	10.70		10.70		11.40		11.40		11.40
HELCO	11.50		11.50		11.50		11.50		11.50
MECO	10.94		10.94		10.94		10.94		10.94
Earned return on simple average common equity ***
HECO	7.02		8.07		4.52		7.61		6.92
HELCO	6.89		9.39		7.79		3.70		6.86
MECO	4.76		8.54		5.78		9.51		9.81
RATE BASE (in millions, December 31)
HECO	$	1,371	$	1,180	$	1,175	$	1,149	$	1,140
HELCO	463		372		367		388		369
MECO	386		386		388		377		324
	$	2,220	$	1,938	$	1,930	$	1,914	$	1,833
RATE BASE (in millions, simple average)
HECO	$	1,276	$	1,178	$	1,162	$	1,145	$	1,122
HELCO	417		369		378		379		359
MECO	386		387		382		350		329
	$	2,079	$	1,934	$	1,922	$	1,874	$	1,810
DEPRECIATION AND AFUDC (%)
Composite annual depreciation rate	3.8		3.8		3.8		3.9		3.9
Accumulated depreciation as percent of gross plant *	37.9		38.0		38.1		37.7		37.1
Weighted-average AFUDC rate	8.1		8.1		8.1		8.4		8.5
NUMBER OF FULL-TIME EQUIVALENT EMPLOYEES *
HECO	1,601		1,525		1,474		1,438		1,432
HELCO	358		348		344		340		330
MECO	338		330		327		307		304
	2,297		2,203		2,145		2,085		2,066
OPERATION AND MAINTENANCE EXPENSE BREAKDOWN BETWEEN LABOR AND NONLABOR FOR DECOUPLING REVENUE ADJUSTMENT MECHANISM****
(in millions, approximately)	LABOR		NONLABOR
HECO (per 2009 rate case second interim decision & order)	$	96	$	122
HELCO (per 2010 rate case request)	$	22	$	39
MECO (per 2010 rate case request)	$	21	$	42

*	At December 31
**	Reflects latest final decision and order. The return on rate base used by the PUC for purposes of the interim decision and orders in the HECO, HELCO and MECO rate cases is 8.45%, 8.33% and 8.67%, respectively. The return on average common equity used by the PUC in those interim decision and orders for the HECO, HELCO and MECO rate cases is 10.50%, 10.70%, 10.70%, respectively.
***	Calculated on a rate-making basis. For 2006 and subsequent years, excludes the amounts that were charged to accumulated other comprehensive income (AOCI) under SFAS No. 158.
****	Labor and Nonlabor amounts are from the working cash calculation for the respective company’s rate case docket for use as a proxy for estimating the revenue adjustment mechanism for O&M expenses.  The final amounts are subject to a final decision and order detailing implementation of revenue decoupling.

10

CONSOLIDATED BALANCE SHEETS

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited

December 31	2009			2008			2007			2006			2005
(in thousands)
ASSETS
Utility plant, at cost
Property, plant and equipment	$	4,748,787		$	4,320,040		$	4,169,428		$	4,038,264		$	3,782,565
Less accumulated depreciation	(1,848,416		)	(1,741,453		)	(1,647,113		)	(1,558,913		)	(1,456,537		)
Construction in progress	132,980			266,628			151,179			95,619			147,756
	3,033,351			2,845,215			2,673,494			2,574,970			2,473,784
Current assets
Cash and equivalents	73,578			6,901			4,678			3,859			143
Customer accounts receivable, net	133,286			166,422			146,112			125,524			123,895
Accrued unbilled revenues, net	84,276			106,544			114,274			92,195			91,321
Other accounts receivable, net	8,449			7,918			6,915			4,423			14,761
Fuel oil stock, at average cost	78,661			77,715			91,871			64,312			85,450
Materials and supplies, at average cost	35,908			34,532			34,258			30,540			26,974
Prepayments and other	16,201			12,626			9,490			9,695			114,902
	430,359			412,658			407,598			330,548			457,446
Other long-term assets
Regulatory assets	426,862			530,619			284,990			112,349			110,718
Unamortized debt expense	14,288			14,503			15,635			13,722			14,361
Other	73,532			53,114			42,171			31,545			25,152
	514,682			598,236			342,796			157,616			150,231
	$	3,978,392		$	3,856,109		$	3,423,888		$	3,063,134		$	3,081,461
CAPITALIZATION AND LIABILITIES
Capitalization
Common stock equity	$	1,306,408		$	1,188,842		$	1,110,462		$	958,203		$	1,039,259
Cumulative preferred stock - not subject to mandatory redemption	22,293			22,293			22,293			22,293			22,293
Noncontrolling interest - cumulative preferred stock of subsidiaires - not subject to mandatory redemption	12,000			12,000			12,000			12,000			12,000
Long-term debt, net	1,057,815			904,501			885,099			766,185			765,993
	2,398,516			2,127,636			2,029,854			1,758,681			1,839,545
Current liabilities
Short-term borrowings - nonaffiliates	—			—			28,791			113,107			136,165
Short-term borrowings - affiliate	—			41,550			—			—			—
Accounts payable	132,711			122,994			137,895			102,512			122,201
Interest and preferred dividends payable	21,223			15,397			14,719			10,645			9,990
Taxes accrued	156,092			220,046			189,637			152,182			133,583
Other	48,192			55,268			57,799			43,120			37,132
	358,218			455,255			428,841			421,566			439,071
Deferred credits and other liabilities
Deferred income taxes	180,603			166,310			162,113			118,055			208,374
Regulatory liabilities	288,214			288,602			261,606			240,619			219,204
Unamortized tax credits	56,870			58,796			58,419			57,879			55,327
Other	374,427			447,794			183,318			189,606			63,677
	900,114			961,502			665,456			606,159			546,582
Contributions in aid of construction	321,544			311,716			299,737			276,728			256,263
	$	3,978,392		$	3,856,109		$	3,423,888		$	3,063,134		$	3,081,461

Note: See HECO’s “Notes to Consolidated Financial Statements” included or incorporated in HEI’s and HECO’s Form 10-K for each year.

11

CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited

Years ended December 31	2009			2008			2007			2006			2005
(in thousands)
Operating revenues	$	2,026,672		$	2,853,639		$	2,096,958		$	2,050,412		$	1,801,710
Operating expenses
Fuel oil	671,970			1,229,193			774,119			781,740			639,650
Purchased power	499,804			689,828			536,960			506,893			458,120
Other operation	248,515			243,249			214,047			186,449			172,962
Maintenance	107,531			101,624			105,743			90,217			82,242
Depreciation	144,533			141,678			137,081			130,164			122,870
Taxes, other than income taxes	191,699			261,823			194,607			190,413			167,295
Income taxes	48,212			56,307			34,126			47,381			45,029
	1,912,264			2,723,702			1,996,683			1,933,257			1,688,168
Operating income	114,408			129,937			100,275			117,155			113,542
Other income
Allowance for equity funds used during construction	12,222			9,390			5,219			6,348			5,105
Other, net	7,487			5,659			(627		)	3,123			3,538
	19,709			15,049			4,592			9,471			8,643
Interest and other charges
Interest on long-term debt	51,820			47,302			45,964			43,109			43,063
Amortization of net bond premium and expense	3,254			2,530			2,440			2,198			2,212
Other interest charges	2,870			4,925			4,864			7,256			4,133
Allowance for borrowed funds used during construction	(5,268		)	(3,741		)	(2,552		)	(2,879		)	(2,020		)
	52,676			51,016			50,716			49,684			47,388
Net income	81,441			93,970			54,151			76,942			74,797
Less net income attributable to noncontrolling interest - preferred stock of subsidiaries	915			915			915			915			915
Net income attributable to HECO	80,526			93,055			53,236			76,027			73,882
Preferred stock dividends of HECO	1,080			1,080			1,080			1,080			1,080
Net income for common stock	79,446			91,975			52,156			74,947			72,802
Retained earnings, January 1	802,590			724,704			700,252			654,686			632,779
Adjustment to initially apply FIN 48	—			—			(620		)	—			—
Common stock dividends	(55,000		)	(14,089		)	(27,084		)	(29,381		)	(50,895		)
Retained earnings, December 31	$	827,036		$	802,590		$	724,704		$	700,252		$	654,686

Note: See HECO’s “Notes to Consolidated Financial Statements” included or incorporated in HEI’s and HECO’s Form 10-K for each year.

12

CUMULATIVE PREFERRED STOCK NOT SUBJECT TO MANDATORY REDEMPTION

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited

December 31							2009		2008		2007		2006		2005
(dollars in thousands, except par values)
						Shares outstanding
			Par value			12/31/09
C	4.25	%	$	20	HECO	150,000	$	3,000	$	3,000	$	3,000	$	3,000	$	3,000
D	5.00		20		HECO	50,000	1,000		1,000		1,000		1,000		1,000
E	5.00		20		HECO	150,000	3,000		3,000		3,000		3,000		3,000
H	5.25		20		HECO	250,000	5,000		5,000		5,000		5,000		5,000
I	5.00		20		HECO	89,657	1,793		1,793		1,793		1,793		1,793
J	4.75		20		HECO	250,000	5,000		5,000		5,000		5,000		5,000
K	4.65		20		HECO	175,000	3,500		3,500		3,500		3,500		3,500
G	7.625		100		HELCO	70,000	7,000		7,000		7,000		7,000		7,000
H	7.625		100		MECO	50,000	5,000		5,000		5,000		5,000		5,000
						1,234,657	$	34,293	$	34,293	$	34,293	$	34,293	$	34,293

Note: See HECO’s “Notes to Consolidated Financial Statements” included or incorporated in HEI’s and HECO’s Form 10-K for each year.

13

LONG-TERM DEBT

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited

December 31	2009		2008		2007		2006		2005
(in thousands)
OBLIGATIONS TO THE STATE OF HAWAII FOR THE REPAYMENT OF SPECIAL PURPOSE REVENUE BONDS
HECO
Series 1993, 5.45%, due 2023	$	50,000	$	50,000	$	50,000	$	50,000	$	50,000
Series 1996A, 6.20%, due 2026 *	—		—		—		48,000		48,000
Series 1996B, 5.875%, due 2026 *	—		—		—		14,000		14,000
Series 1997A, 5.65%, due 2027	50,000		50,000		50,000		50,000		50,000
Refunding series 1998A, 4.95%, due 2012	42,580		42,580		42,580		42,580		42,580
Refunding series 1999B, 5.75%, due 2018	30,000		30,000		30,000		30,000		30,000
Series 1999C, 6.20%, due 2029	35,000		35,000		35,000		35,000		35,000
Refunding series 1999D, 6.15%, due 2020	16,000		16,000		16,000		16,000		16,000
Refunding series 2000, 5.70%, due 2020	46,000		46,000		46,000		46,000		46,000
Series 2002A, 5.10%, due 2032	40,000		40,000		40,000		40,000		40,000
Refunding series 2003B, 5.00%, due 2022	40,000		40,000		40,000		40,000		40,000
Refunding series 2005A, 4.80%, due 2025	40,000		40,000		40,000		40,000		40,000
Series, 2007A, 4.65%, due 2037	100,000		100,000		100,000		—		—
Refunding series 2007B, 4.60%, due 2026	62,000		62,000		62,000		—		—
Series 2009, 6.50%, due 2039	90,000		—		—		—		—
	$	641,580	$	551,580	$	551,580	$	451,580	$	451,580

* The proceeds from the Refunding Series 2007B SPRB were applied to refund this series of SPRB on March 27, 2007.

(Continued on next page)

14

LONG-TERM DEBT (Continued)

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited

December 31	2009			2008			2007			2006			2005
(in thousands)
OBLIGATIONS TO THE STATE OF HAWAII FOR THE REPAYMENT OF SPECIAL PURPOSE REVENUE BONDS
HELCO
Series 1993, 5.45%, due 2023	$	20,000		$	20,000		$	20,000		$	20,000		$	20,000
Series 1996A, 6.20%, due 2026 *	—			—			—			7,000			7,000
Series 1996B, 5.875%, due 2026 *	—			—			—			1,000			1,000
Series 1997A, 5.65%, due 2027	30,000			30,000			30,000			30,000			30,000
Refunding series 1998A, 4.95%, due 2012	7,200			7,200			7,200			7,200			7,200
Refunding series 1999A, 5.50%, due 2014	11,400			11,400			11,400			11,400			11,400
Refunding series 1999B, 5.75%, due 2018	11,000			11,000			11,000			11,000			11,000
Refunding series 1999D, 6.15%, due 2020	3,000			3,000			3,000			3,000			3,000
Refunding series 2003A, 4.75%, due 2020	14,000			14,000			14,000			14,000			14,000
Refunding series 2003B, 5.00%, due 2022	12,000			12,000			12,000			12,000			12,000
Refunding series 2005A, 4.8%, due 2025	5,000			5,000			5,000			5,000			5,000
Series 2007A, 4.65%, due 2037	20,000			20,000			20,000			—			—
Refunding series 2007B, 4.60%, due 2026	8,000			8,000			8,000			—			—
Series 2009, 6.50%, due 2039	60,000			—			—			—			—
	201,600			141,600			141,600			121,600			121,600
MECO
Series 1993, 5.45%, due 2023	30,000			30,000			30,000			30,000			30,000
Series 1996A, 6.20%, due 2026 *	—			—			—			20,000			20,000
Series 1996B, 5.875%, due 2026 *	—			—			—			35,000			35,000
Series 1997A, 5.65%, due 2027	20,000			20,000			20,000			20,000			20,000
Refunding series 1998A, 4.95%, due 2012	7,720			7,720			7,720			7,720			7,720
Refunding series 1999B, 5.75%, due 2018	9,000			9,000			9,000			9,000			9,000
Refunding series 1999D, 6.15%, due 2020	1,000			1,000			1,000			1,000			1,000
Refunding series 2000, 5.70%, due 2020	20,000			20,000			20,000			20,000			20,000
Refunding series 2005A, 4.8%, due 2025	2,000			2,000			2,000			2,000			2,000
Series 2007A, 4.65%, due 2037	20,000			20,000			20,000			—			—
Refunding series 2007B, 4.60%, due 2026	55,000			55,000			55,000			—			—
	164,720			164,720			164,720			144,720			144,720
	1,007,900			857,900			857,900			717,900			717,900
Less funds on deposit with trustees	—			(3,186		)	(22,461		)	—			—
	1,007,900			854,714			835,439			717,900			717,900
OTHER LONG-TERM DEBT (UNSECURED)
6.50%, series 2004, Junior subordinated deferrable interest debentures, due 2034	51,546			51,546			51,546			51,546			51,546
Long-term debt, including amounts due within one year	1,059,446			906,260			886,985			769,446			769,446
Less unamortized discount	(1,631		)	(1,759		)	(1,886		)	(3,261		)	(3,453		)
Long-term debt, net	$	1,057,815		$	904,501		$	885,099		$	766,185		$	765,993

*The proceeds from the Refunding Series 2007B SPRB were applied to refund this series of SPRB on March 27, 2007.

Note: See HECO’s “Notes to Consolidated Financial Statements” included or incorporated in HEI’s and HECO’s Form 10-K for each year.

15

CONSOLIDATED STATEMENTS OF CASH FLOWS

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited

Years ended December 31	2009			2008			2007			2006			2005
(in thousands)
Cash flows from operating activities
Net income	$	81,441		$	93,970		$	54,151		$	76,942		$	74,797
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of utility plant	144,533			141,678			137,081			130,164			122,870
Other amortization	10,045			8,619			8,230			7,932			8,479
Writedown of utility plant	—			—			11,701			—			—
Deferred income taxes	14,762			3,882			(31,888		)	(9,671		)	19,086
Tax credits, net	(1,332		)	1,470			1,992			3,810			3,471
Allowance for equity funds used during construction	(12,222		)	(9,390		)	(5,219		)	(6,348		)	(5,105		)
Changes in assets and liabilities:
Decrease (increase) in accounts receivable	32,605			(21,313		)	(23,080		)	8,709			(30,150		)
Decrease (increase) in accrued unbilled revenues	22,268			7,730		��	(22,079		)	(874		)	(12,293		)
Decrease (increase) in fuel oil stock	(946		)	14,156			(27,559		)	21,138			(26,880		)
Increase in materials and supplies	(1,376		)	(274		)	(3,718		)	(3,566		)	(3,206		)
Increase in regulatory assets	(17,597		)	(3,229		)	(1,968		)	(6,123		)	(5,036		)
Increase (decrease) in accounts payable	9,717			(14,901		)	35,383			(19,689		)	28,186
Changes in prepaid and accrued income and utility revenue taxes	(61,951		)	28,055			37,455			18,599			27,658
Other *	(2,571		)	(5,445		)	16,108			7,423			(16,244		)
Net cash provided by operating activities	217,376			245,008			186,590			228,446			185,633
Cash flows from investing activities
Capital expenditures	(302,327		)	(278,476		)	(209,821		)	(195,072		)	(217,610		)
Contributions in aid of construction	14,170			17,319			19,011			19,707			21,083
Other	340			1,157			5,440			407			1,680
Net cash used in investing activities	(287,817		)	(260,000		)	(185,370		)	(174,958		)	(194,847		)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings from nonaffiliates and affiliate with original maturities of three months or less	(10,464		)	12,759			(84,316		)	(23,058		)	47,597
Proceeds from issuance of long-term debt	153,186			19,275			242,538			—			59,462
Repayment of long-term debt	—			—			(126,000		)	—			(47,000		)
Proceeds from issuance of common stock	61,914			—			—			—			—
Preferred stock dividends	(1,995		)	(1,995		)	(1,995		)	(1,995		)	(1,995		)
Common stock dividends	(55,000		)	(14,089		)	(27,084		)	(29,381		)	(50,895		)
Other	(10,523		)	1,265			(3,544		)	4,662			1,861
Net cash provided by (used in) financing activities	137,118			17,215			(401		)	(49,772		)	9,030
Net increase (decrease) in cash and equivalents	66,677			2,223			819			3,716			(184		)
Cash and equivalents, January 1	6,901			4,678			3,859			143			327
Cash and equivalents, December 31	$	73,578		$	6,901		$	4,678		$	3,859		$	143

* For years 2006 and prior, includes changes in prepaid pension benefit cost

Note: See HECO’s “Notes to Consolidated Financial Statements” included or incorporated in HEI’s and HECO’s Form 10-K for each year.

16

CUSTOMER, SALES AND REVENUE DATA

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited

Years ended December 31	2009		2008		2007		2006		2005
SERVICE AREA
Service area (square miles)	5,766		5,766		5,766		5,766		5,766
Service area population (estimated, in thousands)	1,231		1,224		1,214		1,213		1,203
CUSTOMER ACCOUNTS *
Residential	385,886		383,042		381,964		376,783		372,638
Commercial	54,527		55,243		55,869		55,493		54,647
Large light and power	558		543		554		567		559
Other	1,613		1,583		1,510		1,499		1,472
	442,584		440,411		439,897		434,342		429,316
CUSTOMER ACCOUNTS BY COMPANY *
HECO	295,282		293,740		294,591		292,988		291,580
HELCO	79,813		79,606		78,983		76,417		73,835
MECO	67,489		67,065		66,323		64,937		63,901
Consolidated	442,584		440,411		439,897		434,342		429,316
KILOWATTHOUR SALES (millions)
Residential	2,893		2,925		3,035		3,022		3,008
Commercial	3,222		3,326		3,341		3,313		3,289
Large light and power	3,525		3,633		3,690		3,729		3,742
Other	50		52		52		52		51
	9,690		9,936		10,118		10,116		10,090
KILOWATTHOUR SALES MIX (%)
Residential	29.9		29.4		30.0		29.9		29.8
Commercial	33.2		33.5		33.0		32.7		32.6
Large light and power	36.4		36.6		36.5		36.9		37.1
Other	0.5		0.5		0.5		0.5		0.5
	100.0		100.0		100.0		100.0		100.0
KILOWATTHOUR SALES BY COMPANY (millions)
HECO	7,378		7,556		7,675		7,701		7,721
HELCO	1,120		1,141		1,163		1,149		1,117
MECO	1,192		1,239		1,280		1,266		1,252
Consolidated	9,690		9,936		10,118		10,116		10,090
KILOWATTHOUR SALES GROWTH BY COMPANY (%)
HECO	(2.4	)	(1.6	)	(0.3	)	(0.3	)	(0.2	)
HELCO	(1.8	)	(1.9	)	1.2		2.9		3.1
MECO	(3.8	)	(3.2	)	1.1		1.2		0.4
Consolidated	(2.5	)	(1.8	)	0.0		0.3		0.3

*At December 31

17

CUSTOMER, SALES AND REVENUE DATA (Continued)

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited

Years ended December 31	2009		2008		2007		2006		2005
ELECTRIC OPERATING REVENUES (thousands)
Electric sales revenue
Residential	$	690,656	$	935,061	$	713,241	$	690,425	$	607,031
Commercial	694,087		973,048		714,218		695,247		611,403
Large light and power	623,159		921,321		652,298		648,066		569,016
Other	10,721		15,069		10,791		10,530		9,200
	2,018,623		2,844,499		2,090,548		2,044,268		1,796,650
Other revenues	8,049		9,140		6,410		6,144		5,060
	$	2,026,672	$	2,853,639	$	2,096,958	$	2,050,412	$	1,801,710
ELECTRIC OPERATING REVENUES BY COMPANY (thousands)
HECO	$	1,384,885	$	1,954,772	$	1,385,136	$	1,365,593	$	1,204,220
HELCO	343,943		446,297		361,412		339,554		294,411
MECO	297,844		452,570		350,410		345,265		303,079
Consolidated	$	2,026,672	$	2,853,639	$	2,096,958	$	2,050,412	$	1,801,710
AVERAGE REVENUE PER KWH SOLD (cents)
Residential	23.87		31.97		23.50		22.85		20.18
Commercial	21.54		29.25		21.38		20.98		18.59
Large light and power	17.68		25.36		17.68		17.38		15.21
Other	21.36		28.81		20.81		20.44		17.92
	20.83		28.63		20.66		20.21		17.81
AVERAGE REVENUE PER KWH SOLD BY COMPANY (cents)
HECO	18.70		25.78		17.99		17.68		15.56
HELCO	30.63		39.02		31.02		29.49		26.31
MECO	24.86		36.40		27.27		27.16		24.10
Consolidated	20.83		28.63		20.66		20.21		17.81
AVERAGE ANNUAL RESIDENTIAL USE PER CUSTOMER BY COMPANY (KWH)
HECO	7,759		7,868		8,214		8,248		8,360
HELCO	6,613		6,703		7,024		7,142		7,087
MECO	7,503		7,681		8,101		8,185		8,266
Consolidated	7,523		7,640		7,996		8,056		8,141
Average monthly electric sales revenue per residential customer	$	150	$	204	$	157	$	153	$	137

18

POWER SUPPLY DATA

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited

Years ended December 31	2009		2008		2007		2006		2005
ENERGY NET GENERATED AND PURCHASED (millions of KWH)
Net generated
Fuel oil
Steam-conventional (1)	4,972		5,193		5,379		5,430		5,239
Combustion turbine (1), (2)	98		125		134		294		361
Diesel	295		264		280		375		442
Combined-cycle (1)	723		662		671		488		432
	6,088		6,244		6,464		6,587		6,474
Hydro and wind	29		18		15		24		11
Total net generated	6,117		6,262		6,479		6,611		6,485
Purchased	4,120		4,248		4,228		4,094		4,168
	10,237		10,510		10,707		10,705		10,653
GENERATION MIX (%)
Fuel oil
Steam-conventional (1)	48.6		49.4		50.2		50.7		49.2
Combustion turbine (1),(2)	0.9		1.2		1.3		2.7		3.4
Diesel	2.9		2.5		2.6		3.5		4.1
Combined-cycle (1)	7.1		6.3		6.3		4.6		4.1
	59.5		59.4		60.4		61.5		60.8
Hydro and wind	0.3		0.2		0.1		0.2		0.1
Total generation	59.8		59.6		60.5		61.7		60.9
Purchased	40.2		40.4		39.5		38.3		39.1
	100.0		100.0		100.0		100.0		100.0
SYSTEM CAPABILITY (MW) * **
Company-owned generation
Steam-conventional (1)	1,205		1,205		1,205		1,205		1,205
Combustion turbine (1)	263		193		193		193		234
Diesel	177		176		174		158		148
Combined-cycle (1)	170		113		113		113		57
	1,815		1,687		1,685		1,669		1,644
Firm purchase power contracts	532		540		538		535		540
	2,347		2,227		2,223		2,204		2,184
SYSTEM CAPABILITY BY COMPANY (MW) * **
HECO	1,785		1,672		1,672		1,667		1,657
HELCO	278		272		270		267		272
MECO	284		283		281		270		255
	2,347		2,227		2,223		2,204		2,184
SYSTEM PEAK LOAD BY COMPANY (MW) ***
HECO	1,213		1,186		1,216		1,266		1,230
HELCO	195		198		203		201		197
MECO	210		206		216		218		214
	1,618		1,590		1,635		1,685		1,641
FUEL OIL DATA
Barrels of fuel oil consumed (thousands)	10,514		10,735		11,207		11,474		11,300
Average fuel oil cost per barrel	$	63.91	$	114.50	$	69.08	$	68.13	$	56.61
Average fuel oil cost per million BTU (cents)	1,026.4		1,840.0		1,108.2		1,094.1		908.6
Fuel oil cost per net KWH generated (cents)	11.036		19.687		11.977		11.869		9.880
BTU per net KWH generated by company
HECO	10,590		10,496		10,649		10,582		10,690
HELCO	13,085		13,984		13,903		13,823		13,443
MECO	10,323		10,240		10,190		10,580		10,493
Consolidated	10,753		10,700		10,807		10,848		10,873
OTHER DATA
Losses and system uses (%)	5.1		5.2		5.3		5.3		5.1
Reserve margin (%) ***	50.0		44.5		38.6		32.3		34.0
Annual load factor (%) ***	72.2		75.3		74.7		72.5		74.1
Cost per KWH purchased (cents)	12.132		16.238		12.700		12.380		10.993

*	At December 31
**	Excludes hydro run-of-river units
***	Net; noncoincident and nonintegrated
(1)	Combined-cycle data previously reported as steam-conventional and combustion turbine
(2)	Includes biodiesel

19

FORECAST: 2010 - 2014 ELECTRIC UTILITY COMPANIES

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited

Forecast as of December 14, 2009

Years ended December 31	2009			2010			2011			2012		2013			2014			2010-2014
(dollars in millions)	actual
USES OF CAPITAL
Transmission and distribution	$	140.8		$	156.5		$	169.6		$	188.1	$	178.2		$	153.5		$	845.9
Production	165.1			57.0			59.0			57.0		81.0			89.0			343.0
General	19.0			55.0			58.0			55.0		89.0			136.0			393.0
Total capital expenditures, including AFUDC	324.9			268.5			286.6			300.1		348.2			378.5			1,581.9		(1)
Less: AFUDC	16.3			9.7			11.6			11.0		13.2			17.2			62.7
Contributions in aid of construction	20.2			35.6			28.0			27.3		34.5			22.9			148.3
Net capital expenditures	288.4			223.2			247.0			261.8		300.5			338.4			1,370.9
Other requirements (2)	—			—			—			57.5		—			11.4			68.9
Total net requirements	$	288.4		$	223.2		$	247.0		$	319.3	$	300.5		$	349.8		$	1,439.8
SOURCES OF CAPITAL
Internal funds after dividends
Depreciation and amortization	$	158.1		$	169.2		$	169.6		$	177.9	$	181.9		$	191.5		$	890.1
Deferred income taxes and tax credits, net	13.4			(9.5		)	1.9			3.6		(1.7		)	(0.6		)	(6.3		)
Retained earnings and other, excluding AFUDC	(87.7		)	(23.8		)	(6.2		)	43.0		17.2			30.2			60.4
Total internal sources, excluding AFUDC	83.8			135.9			165.3			224.5		197.4			221.1			944.2
External financing sources
Debt	(41.6		)	32.0			6.0			94.8		71.7			80.9			285.4
Drawdown of revenue bond proceeds	153.2			—			—			—		—			—			—
Common Stock Issuance	93.0			55.3			75.7			—		31.4			47.8			210.2
Total external financing sources	204.6			87.3			81.7			94.8		103.1			128.7			495.6
Total sources	$	288.4		$	223.2		$	247.0		$	319.3	$	300.5		$	349.8		$	1,439.8
Internal sources as a percent of Net capital expenditures	29			61			67			86		66			65			69
Total net requirements	29			61			67			70		66			63			66
CAPITAL STRUCTURE (at December 31)
Capitalization
Total debt	$	1,057.8		$	1,092.0		$	1,098.1		$	1,135.4	$	1,207.1		$	1,276.6
Preferred stock	34.3			34.3			34.3			34.3		34.3			34.3
Common stock	1,306.4			1,385.1			1,504.9			1,553.2		1,639.8			1,745.5
Total capitalization	$	2,398.5		$	2,511.4		$	2,637.3		$	2,722.9	$	2,881.2		$	3,056.4
Capitalization ratios (%)
Total debt	44.1			43.5			41.6			41.7		41.9			41.8
Preferred stock	1.4			1.4			1.3			1.3		1.2			1.1
Common stock	54.5			55.1			57.1			57.0		56.9			57.1
Total capitalization	100.0			100.0			100.0			100.0		100.0			100.0
EPS SENSITIVITY TO CHANGES IN HECO CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY
EPS impact of 100 bps improvement of ROE(3):
EPS impact	$	0.14		$0.14 - $0.15			$0.15 - $0.16			$0.15 - $0.16		$0.16 - $0.17			$0.17 - $0.18
Common equity levels (dollars in billions)	$	1.3		$1.3 - $1.4			$1.4 - $1.5			$1.5 - $1.6		$1.6 - $1.7			$1.7 - $1.8

(1)  5-year capital investment plan of $1.6 billion.  Year over year rate base growth of approximately 5% per year.

(2)  May not include those securities sold at company’s option, the proceeds of which are used to repay long-term obligations prior to their maturity.

(3)  Assumes approximately 2 million shares added each year, based upon historical trends, from the Dividend reinvestment and stock purchase and other plans.

20

FORECAST: 2010 - 2014  ELECTRIC UTILITY COMPANIES

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited

Forecast as of December 14, 2009

Years ended December 31	2009		2010		2011		2012		2013		2014
	actual
CONSOLIDATED SALES AND GENERATION DATA
Sales (millions of KWH)(1)
HECO (Oahu)	7,378		7,056		7,088		7,235		7,318		7,426
HELCO (Hawaii)	1,120		1,122		1,137		1,153		1,175		1,196
MECO (Maui, Lanai, Molokai)	1,192		1,131		1,139		1,148		1,153		1,164
Total	9,690		9,309		9,364		9,536		9,646		9,786
Increase (decrease) from previous year	(2.5	)%	(3.9	)%	0.6	%	1.8	%	1.1	%	1.5	%
Peak load (MW) (2)	1,618		1,552		1,564		1,598		1,612		1,640
Increase (decrease) from previous year	1.8	%	(4.1	)%	0.8	%	2.2	%	0.8	%	1.7	%
Generating capability at year-end (MW)	1,815		1,815		1,815		1,815		1,815		1,815
Firm purchased capacity at year-end (MW)	532		540		540		540		540		540
Generating capability and firm purchased capacity at year-end (MW)	2,347		2,355		2,355		2,355		2,355		2,355
Firm purchased capacity (%)	22.7		22.9		22.9		22.9		22.9		22.9
Reserve margin (%) (2)	50.0		51.8		50.5		47.4		46.1		43.6
Load factor (%) (2)	72.2		72.3		72.1		71.7		72.1		71.9
Net KWH generated and purchased (millions)
Company generated	6,117		5,734		5,634		5,537		5,503		5,305
Purchased power	4,120		4,089		4,247		4,529		4,677		5,022
Total	10,237		9,823		9,881		10,066		10,180		10,327
CONSOLIDATED GENERATION MIX BY SOURCE (%) (3)
Fuel oil	76.9		74.4		73.1		70.6		69.6		66.2
Coal	14.7		15.5		14.8		15.5		15.7		15.0
Solid waste	3.2		3.4		3.2		4.1		4.9		5.0
Geothermal and other	5.2		6.7		8.9		9.8		9.8		13.8
Total	100.0		100.0		100.0		100.0		100.0		100.0

(1)The Electric Utilities’ December 14, 2009 forecast, as provided on page 20, reflects the sales forecast shown above.  Subsequently, HECO Oahu's sales forecast was updated (HELCO and MECO sales forecast remained unchanged) and indicates that consolidated year-over-year changes in sales for 2010 thru 2014 are expected to be (0.9%), 0.3%, 0.6%, 0.6% and 1.0%, respectively.

Although the HECO Oahu sales forecast has changed, the forecast provided on page 20 assumes Revenue Decoupling (see "Decoupling proceeding" in the 2009 Annual Report) for Oahu.  As such, there is no significant impact to forecasted sales revenues.  Other potential impacts of changes in the sales forecast may include, but are not limited to cashflow timing, heat rate and other operation and maintenance expense variances.  These impacts are not expected to be significant to net income.

(2)Noncoincident and nonintegrated

(3)Includes company-owned and purchased generation

HAWAII PUBLIC UTILITIES COMMISSION

The Governor, with the consent of the Senate, appoints three full-time commissioners to staggered six-year terms. Commissioners can serve no more than 12 consecutive years. Statutes provide for the rendering of an “interim decision” in rate cases within 11 months of the filing of a complete application by the company. There is no statutory deadline for rendering a final decision.

Carlito P. Caliboso (an attorney previously in private practice) has been chairman of the PUC since April 30, 2003, and is serving in his second term which will expire on June 30, 2010.  Also serving as commissioners are John E. Cole (term expiring June 30, 2012) who previously served as the executive director of the Division of Consumer Advocacy, Department of Commerce and Consumer Affairs, and Leslie Kondo (term expiring June 30, 2014) who previously served as the director of the State Office of Information Practices.

CONSUMER ADVOCATE

Dean Nishina was appointed executive director of the Division of Consumer Advocacy effective December 7, 2009.  Prior to becoming the executive director, Mr. Nishina served as the public utilities/transportation administrator for the Division of Consumer Advocacy.

21

SELECTED DATA

American Savings Bank, F.S.B. and Subsidiaries

Unaudited

Years ended December 31	2009		2008		2007	2006		2005
REGULATORY CAPITAL (%)
Tangible capital
ASB	8.99		8.48		7.78	7.55		7.43
OTS requirement	1.50		1.50		1.50	1.50		1.50
Core (leverage) capital
ASB	8.99		8.48		7.78	7.55		7.43
OTS requirement	4.00		4.00		4.00	4.00		4.00
Risk-based capital
ASB	14.06		12.76		14.68	14.69		15.07
OTS requirement	8.00		8.00		8.00	8.00		8.00
KEY STATISTICS (%)
Return on assets (1)
ASB	0.43		0.29		0.78	0.82		0.95
Peers (2)	0.16		0.65		0.92	1.13		1.10
High performing peers (2)	0.85		0.99		1.14	1.37		1.36
Net interest margin
ASB	4.19		3.62		3.05	3.13		3.26
Peers (2)	3.43		3.53		3.52	3.67		3.81
High performing peers (2)	3.89		3.88		3.73	3.80		3.88
Efficiency ratio
ASB	72		85		66	65		61
Peers (2)	64		60		60	58		56
High performing peers (2)	54		54		54	55		54
Revenue growth
ASB	(8.67	)	(4.69	)	1.27	(1.58	)	5.96
Peers (2)	12.19		3.29		3.59	4.35		8.24
High performing peers (2)	14.43		8.00		3.89	3.20		7.13
Net charge-offs to loans outstanding
ASB	0.66		0.11		0.17	0.02		0.00
Peers (2)	1.18		0.58		0.22	0.09		0.11
High performing peers (2)	0.70		0.57		0.21	0.06		0.16
OTHER DATA
Branch locations *	60		63		63	64		64
Employees *	1,117		1,313		1,330	1,318		1,272

* At December 31

(1)2009 net income included $19 million after tax charge related to the sale of private-issue mortgage-related securities. 2008 net income included $36 million after tax charge related to the balance sheet restructuring.

(2)2009 peer group includes all publicly traded banks and thrifts between $3.5 billion and $8.0 billion in total assets.  2005-2008 peer group includes all publicly traded banks and thrifts between $4.0 and $9.0 billion in total assets.

22

CONSOLIDATED BALANCE SHEETS

American Savings Bank, F.S.B. and Subsidiaries

Unaudited

December 31	2009			2008			2007			2006			2005
(in thousands)
ASSETS
Cash and equivalents	$	427,375		$	169,298		$	204,023		$	252,041		$	207,564
Available-for-sale investment and mortgage-related securities	432,881			657,717			2,140,772			2,367,427			2,629,351
Investment in stock of Federal Home Loan Bank of Seattle, at cost	97,764			97,764			97,764			97,764			97,764
Loans receivable, net	3,670,493			4,206,492			4,101,193			3,780,461			3,566,834
Real estate acquired in settlement of loans, net	3,959			1,492			—			—			—
Other	222,123			220,290			232,656			223,666			244,443
Goodwill and other intangibles, net	86,390			84,067			85,085			87,140			89,379
	$	4,940,985		$	5,437,120		$	6,861,493		$	6,808,499		$	6,835,335
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposit liabilities	$	4,058,760		$	4,180,175		$	4,347,260		$	4,575,548		$	4,557,419
Other borrowings	297,628			680,973			1,810,669			1,568,585			1,622,294
Other	92,129			98,598			108,800			104,470			98,189
	4,448,517			4,959,746			6,266,729			6,248,603			6,277,902
Minority interests	—			—			—			—			—
	—			—			—			—			—
Common stock	329,439			328,162			325,467			323,154			321,538
Retained earnings	172,655			197,235			287,710			280,046			272,545
Accumulated other comprehensive income (loss)	(9,626		)	(48,023		)	(18,413		)	(43,304		)	(36,650		)
	492,468			477,374			594,764			559,896			557,433
	$	4,940,985		$	5,437,120		$	6,861,493		$	6,808,499		$	6,835,335

Note: See Note 4 to HEI’s “Notes to Consolidated Financial Statements” included or incorporated in HEI’s Form 10-K for each year.

23

CONSOLIDATED STATEMENTS OF INCOME

American Savings Bank, F.S.B. and Subsidiaries

Unaudited

Years ended December 31	2009			2008			2007		2006		2005
(in thousands)
Interest and dividend income
Interest and fees on loans	$	217,838		$	247,210		$	245,593	$	231,610	$	205,084
Interest and dividends on investment and mortgage-related securities	26,977			65,208			111,470		117,160		125,924
	244,815			312,418			357,063		348,770		331,008
Interest expense
Interest on deposit liabilities	34,046			61,483			81,879		73,614		52,064
Interest on other borrowings	9,497			43,941			78,019		72,482		69,362
	43,543			105,424			159,898		146,096		121,426
Net interest income	201,272			206,994			197,165		202,674		209,582
Provision (reversal of allowance) for loan losses	32,000			10,334			5,700		1,400		(3,100		)
Net interest income after provision (reversal of allowance) for loan losses	169,272			196,660			191,465		201,274		212,682
Noninterest income
Fee income on deposit liabilities	30,713			28,332			26,342		18,779		16,989
Fees from other financial services	25,267			24,846			27,916		26,385		25,790
Fee income on other financial products	5,833			6,683			7,418		8,025		9,058
Gain (loss) on sale of securities	(32,034		)	(17,376		)	1,109		1,735		175
Loss on investments	(15,444		)	(7,764		)	—		—		—
Other income	15,569			11,414			5,647		4,671		4,890
	29,904			46,135			68,432		59,595		56,902
Noninterest expense
Compensation and employee benefits	73,990			77,858			61,937		68,478		69,082
Loss on early extinguishment of debt	760			39,843			—		—		—
Occupancy and equipment	30,906			34,434			35,468		33,529		30,777
Services	11,189			16,706			29,173		21,484		15,466
Data processing	14,382			10,678			10,458		10,164		10,598
Other expense	36,244			36,485			38,872		38,656		38,760
	167,471			216,004			175,908		172,311		164,683
Income before minority interests and income taxes	31,705			26,791			83,989		88,558		104,901
Minority interests	—			—			—		—		45
Income taxes	9,938			8,964			30,882		32,776		39,969
Income before preferred stock dividends	21,767			17,827			53,107		55,782		64,887
Preferred stock dividends	—			—			—		—		4
Net income for common stock	$	21,767	(1)	$	17,827	(2)	$	53,107	$	55,782	$	64,883

(1)   Includes $19 million after tax charge related to the sale of private-issue mortgage-related securities.

(2)   Includes $36 million after tax charge related to the balance sheet restructuring.

Note: See Note 4 to HEI’s “Notes to Consolidated Financial Statements” included or incorporated in HEI’s Form 10-K for each year.

24