Aggressive Cost Control Helps HEI's Third Quarter Earnings

HONOLULU - (BUSINESS WIRE) - Hawaiian Electric Industries, Inc. (NYSE:HE) today reported consolidated net income for common stock for the third quarter of 2009 of $33.5 million, or $0.37 per share, compared to $37.3 million, or $0.44 cents per share for the third quarter of 2008.

"Given our expectations at the outset of the quarter for continued difficult economic conditions and delays in the regulatory process, our operating companies instituted disciplined efforts to control costs which contributed commendably to mitigating these effects and we are pleased with our companies' overall performance," said Constance H. Lau, HEI president and chief executive officer.

"At the utility, predominately short-term cost deferrals and reductions are helping us offset these challenges. In addition, kilowatthour sales benefited from more normal weather conditions than we saw in the first half of the year. At the bank, net income was down quarter over quarter but up significantly from the second quarter of 2009. In addition, the bank continued to make significant strides in its performance improvement initiative to reduce its cost structure that are helping offset elevated credit expenses during this difficult credit cycle," said Lau.

UTILITY RESULTS

Electric utility net income for common stock for the third quarter of 2009 was $26.5 million compared with $25.9 million in the third quarter of 2008. "Interim rate relief and cost control efforts enabled the utility to produce slightly better results quarter over quarter, although returns remain significantly below allowed returns," said Lau.

On August 3^rd, the Public Utilities Commission of the State of Hawaii (PUC) approved the implementation of a partial interim increase of $61.1 million, or 4.7%, in HECO's 2009 test year rate case proceeding, which contributed $5.8 million quarter over quarter to utility net income.

Kilowatthour sales were down 0.8% compared with the same quarter of 2008, reducing utility net income by an estimated $1.1 million. "Sales continue to be impacted by difficult economic conditions and continuing positive efforts by Hawaii residents and businesses to conserve energy, partly offset by warmer and more humid weather," said Lau.

Operations and maintenance expenses (O&M) were up $0.4 million or 0.4% quarter over quarter. Included in third quarter 2008 O&M were $9.5 million of demand-side management program (DSM) costs that were recovered through a surcharge. The energy efficiency DSM programs were transferred to a third-party administrator at the end of the second quarter of 2009, and thus, there was only $2.4 million in costs related to DSM programs in the third quarter of 2009. The remaining difference in quarter over quarter O&M includes operating costs for the new Oahu CT-1 unit, increased spending in support of renewable initiatives, expenses to support our aging infrastructure and higher employee benefit costs. "Due to short-term, aggressive cost containment measures and project deferrals taken in the third quarter in response to delays in the regulatory process, the year-to-date O&M increase of 8% compared favorably with the 10% annual increase we estimated at the end of the second quarter. We now expect O&M for 2009 to increase by approximately 6% compared with 2008, improved from the 13% and 10% annual increases we estimated at the end of the first and second quarters, respectively. While a small portion of these reductions are sustainable, the majority of the reductions are temporary cost containment efforts which cannot be sustained long-term without impacting operations," said Lau.

On September 30^th, the company's Maui County subsidiary filed a 2010 test year rate case, requesting an overall revenue increase of $28.2 million, or 9.7%. The request is based on a 10.75% return on common equity and 8.57% return on rate base. Based on the filing date, the statutory deadline for an interim decision from the Hawaii PUC expires in the third quarter of 2010.

BANK RESULTS

Bank net income for the third quarter of 2009 was $11.3 million, compared to $4.0 million in the second quarter of 2009 and $15.4 million for the same quarter last year.

"This has been a challenging year for financial institutions and our bank's results continue to be impacted by the difficult credit cycle. We continue to make significant strides in our performance improvement initiative, helping offset currently elevated credit expenses and improve the bank's cost structure and earnings power in the long-term. In addition, the bank continues to be well capitalized with a strong Tier-1 core leverage ratio of 9.1% at the end of the quarter," said Lau.

Net interest income in the third quarter of 2009 was $50.5 million compared to $52.3 million in the third quarter of 2008. Lower average earning asset balances and yields were partially offset by lower funding costs. Net interest margin grew to 4.23% in the third quarter of 2009, compared with 4.16% in the second quarter of 2009 and 4.08% in the third quarter of 2008.

The bank recorded a $5.2 million provision for loan losses for the third quarter of 2009 compared with $13.5 million in the second quarter of 2009 and $2.0 million in the third quarter of 2008. The majority of the provision in the third quarter of 2009 reflected an increase in nonperforming residential lot loans and 1-4 family mortgages. A large component of the second quarter 2009 provision related to a large single commercial credit which was partially charged-off. This credit was sold in September 2009 for a pre-tax gain of $3.0 million and was included in bank noninterest income.

Noninterest income for the third quarter of 2009 was $11.9 million, compared with $13.0 million for the second quarter of 2009 and $16.7 million in the third quarter of 2008. Third quarter 2009 noninterest income was reduced by $9.9 million for the other-than-temporary-impairment of certain private-issue mortgage-related securities, compared with $5.6 million in the second quarter of 2009 and none in the third quarter of 2008. Excluding the effects of the other-than-temporary impairment charges in the third and second quarters of 2009 and the gain on sale of a single commercial credit in the third quarter of 2009, the increases in adjusted noninterest income were 13% quarter over quarter and 1% over the second quarter¹. These increases reflect increases in deposit fees and gains on sales of residential loans.

Noninterest expense for the third quarter of 2009 was $39.6 million, compared with $44.4 million in the second quarter of 2009 and $42.4 million for the same period in 2008. On an adjusted basis, noninterest expense decreased by $5.1 million quarter over quarter and $1.8 million over the second quarter of 2009, reflecting progress in the bank's efforts to reduce its cost structure.¹ "The bank's performance improvement project remains on track toward its goal of reducing annualized adjusted noninterest expense to $140-$145 million by the end of 2010," said Lau.¹

HOLDING AND OTHER COMPANIES' RESULTS

The holding and other companies' net losses were $4.4 million in the third quarter of 2009, relatively flat compared with $4.1 million in the third quarter of 2008.

WEBCAST AND TELECONFERENCE

Hawaiian Electric Industries, Inc. will conduct a webcast and teleconference call to review its third quarter 2009 earnings on Monday, November 2, 2009, at 3:00 a.m. Hawaii time (8:00 a.m. Eastern time). The event can be accessed through HEI's website at http://www.hei.com or by dialing (800) 659-2032, passcode: 86467264 for the teleconference call.

An online replay of the webcast will be available at the same website beginning about two hours after the event. Replays of the teleconference call will also be available approximately two hours after the event through November 16, 2009, by dialing (888) 286-8010, passcode: 44997988.

HEI supplies power to over 400,000 customers or 95% of Hawaii's population through its electric utilities, Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited and provides a wide array of banking and other financial services to consumers and businesses through American Savings Bank, F.S.B., one of Hawaii's largest financial institutions.

EXPLANATION OF HEI'S USE OF CERTAIN UNAUDITED NON-GAAP FINANCIAL MEASURES

HEI and bank management use certain non-GAAP measures in their evaluation of the bank's performance and believe the presentations of such financial measures on this basis provide useful supplemental information and a clearer picture of the bank's operating performance, and are a better indicator of the bank's ongoing core operating activities. Management also uses such measures to assist investors/analysts in better understanding the bank's progress on the execution of its process improvement initiative. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of others in the financial services industry.

Management utilizes non-GAAP financial measures of noninterest income and expense in the calculation of certain of the bank's metrics/ratios, such as (i) efficiency, (ii) pretax, preprovision income, and (iii) return on average assets to analyze on a consistent basis and over a longer period of time the performance of the bank's core operating activities. Management also annualizes the non-GAAP measure of noninterest expense by multiplying such measure by 4 to develop an estimate of adjusted noninterest expense for a year-long period. This annualized adjusted noninterest expense metric (non-GAAP measure) may not reflect actual results.

Certain reconciling items-real estate transactions, professional services, FISERV conversion costs, severance, technology write-offs, prepayment penalty on early extinguishment of debt, and a loss on sale of Bishop Insurance Agency-are being incurred pursuant to the bank management's performance improvement initiative which was announced in June 2008 and is expected to conclude by the end of 2010. These costs are being incurred with the objective of increasing the bank's operating efficiency and profitability. Accordingly, bank management believes that these costs will remain temporarily elevated while the performance improvement project is being executed and will be reduced or eliminated once the project has ended. See schedule on last page of this release for a tabular reconciliation of GAAP to Non-GAAP measures.

Reported noninterest income is being adjusted by a gain on sale of a commercial loan. Bank management believes that it would not be appropriate to assume that the bank would realize material gains on a quarterly basis.

Likewise, bank management also adds back to noninterest income charges related to the other-than-temporary impairment (OTTI) of mortgage-related securities because of the material nature of the charge and the unpredictability of when those charges might occur in the future. The bank incurred material OTTI in the fourth quarter of 2008 and the second and third quarters of 2009, impacting the comparability of noninterest income for those quarters with the linked quarters and the same quarters of the previous year. Management believes that adjusting noninterest income to exclude the effects of OTTI helps the comparability of noninterest income quarter to quarter and quarter over quarter.

Lastly, management adjusts noninterest expense to exclude a special assessment levied by the Federal Deposit Insurance Corporation (FDIC) pursuant to the FDIC's plan to recapitalize the deposit insurance fund. While the FDIC may make future special assessments pursuant to this plan, in September 2009, it proposed a restoration plan that requires banks to prepay estimated quarterly assessments for the fourth quarter of 2009 and for all of 2010, 2011 and 2012. Such prepaid assessments would be amortized over these periods. In any event, bank management believes that it would not be appropriate to assume that the bank would incur these special assessments on a quarterly basis. Further, excluding the FDIC charge is consistent with the financial measures used by other banks and enhances the comparison of operating performance.

Limitations associated with utilizing non-GAAP measures are the risks of disagreement over the appropriateness of adjustments comprising these measures and that other companies might calculate these measures differently. Management addresses these limitations by providing detailed reconciliations between GAAP information and non-GAAP measures. See reconciliation on the last page.

FORWARD-LOOKING STATEMENTS

This release may contain "forward-looking statements," which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as expects, anticipates, intends, plans, believes, predicts, estimates or similar expressions. In addition, any statements concerning future financial performance (including future revenues, expenses, earnings or losses or growth rates), ongoing business strategies or prospects and possible future actions, which may be provided by management, are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and assumptions about HEI and its subsidiaries, the performance of the industries in which they do business and economic and market factors, among other things. These forward-looking statements are not guarantees of future performance.

Forward-looking statements in this release should be read in conjunction with the "Forward-Looking Statements" discussion (which is incorporated by reference herein) set forth on pages iv and v of HEI's Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, and in HEI's future periodic reports that discuss important factors that could cause HEI's results to differ materially from those anticipated in such statements. Forward-looking statements speak only as of the date of this release.

¹ Refer to the last page of the accompanying schedules of this release for a reconciliation of noninterest income and expense based on U.S. generally accepted accounting principles to adjusted noninterest income and expense.

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
		Three months ended September 30,								Nine months ended September 30,								Twelve months ended September 30,
(in thousands, except per share amounts)		2009				2008				2009				2008				2009				2008
Revenues
Electric utility		$	548,440			$	827,788			$	1,460,654			$	2,139,798			$	2,181,206			$	2,738,107
Bank			71,947				87,675				229,478				279,469				308,562				387,471
Other			(74	)			(32	)			(121	)			(164	)			60				1,696
			620,313				915,431				1,690,011				2,419,103				2,489,828				3,127,274
Expenses
Electric utility			494,268				775,941				1,343,250				1,981,572				2,030,669				2,522,443
Bank			54,258				62,983				189,162				262,406				258,357				343,067
Other			3,148				2,378				9,247				8,648				14,770				13,422
			551,674				841,302				1,541,659				2,252,626				2,303,796				2,878,932
Operating income (loss)
Electric utility			54,172				51,847				117,404				158,226				150,537				215,664
Bank			17,689				24,692				40,316				17,063				50,205				44,404
Other			(3,222	)			(2,410	)			(9,368	)			(8,812	)			(14,710	)			(11,726	)
			68,639				74,129				148,352				166,477				186,032				248,342
Interest expense–other than on deposit liabilities and other bank borrowings			(19,678	)			(19,345	)			(55,421	)			(56,780	)			(74,783	)			(75,954	)
Allowance for borrowed funds used during construction			1,118				967				4,467				2,564				5,644				3,276
Allowance for equity funds used during construction			2,628				2,426				10,353				6,432				13,311				7,881
Income before income taxes			52,707				58,177				107,751				118,693				130,204				183,545
Income taxes			18,753				20,425				36,977				40,892				45,063				64,689
Net income			33,954				37,752				70,774				77,801				85,141				118,856
Less net income attributable to noncontrolling interest - preferred stock of subsidiaries			471				471				1,417				1,417				1,890				1,887
Net income for common stock		$	33,483			$	37,281			$	69,357			$	76,384			$	83,251			$	116,969
Basic earnings per common share		$	0.37			$	0.44			$	0.76			$	0.91			$	0.93			$	1.40
Diluted earnings per common share		$	0.37			$	0.44			$	0.76			$	0.91			$	0.92			$	1.39
Dividends per common share		$	0.31			$	0.31			$	0.93			$	0.93			$	1.24			$	1.24
Weighted-average number of common shares outstanding			91,522				84,625				91,173				84,052				89,959				83,788
Adjusted weighted-average shares			91,653				84,842				91,278				84,182				90,072				83,906
Income (loss) by segment
Electric utility		$	26,514			$	25,932			$	56,141			$	77,949			$	70,167			$	106,127
Bank			11,323				15,405				26,226				11,888				32,165				29,086
Other			(4,354	)			(4,056	)			(13,010	)			(13,453	)			(19,081	)			(18,244	)
Net income for common stock		$	33,483			$	37,281			$	69,357			$	76,384			$	83,251			$	116,969
This information should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2008 (included in HEI's Form 8-K dated June 9, 2009) and the consolidated financial statements and the notes thereto in HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED BALANCE SHEETS (Unaudited)
(dollars in thousands)		September 30, 2009				December 31, 2008
Assets
Cash and equivalents		$	257,331			$	182,903
Federal funds sold			1,708				532
Accounts receivable and unbilled revenues, net			252,186				300,666
Available-for-sale investment and mortgage-related securities			623,104				657,717
Investment in stock of Federal Home Loan Bank of Seattle			97,764				97,764
Loans receivable, net			3,758,898				4,206,492
Property, plant and equipment, net of accumulated depreciation of $1,918,984 and $1,851,813			3,052,209				2,907,376
Regulatory assets			535,287				530,619
Other			344,336				328,823
Goodwill, net			82,190				82,190
		$	9,005,013			$	9,295,082
Liabilities and stockholders' equity
Liabilities
Accounts payable		$	182,943			$	183,584
Deposit liabilities			4,047,940				4,180,175
Other bank borrowings			367,884				680,973
Long-term debt, net-other than bank			1,364,784				1,211,501
Deferred income taxes			162,452				143,308
Regulatory liabilities			282,239				288,602
Contributions in aid of construction			315,455				311,716
Other			825,115				871,476
			7,548,812				7,871,335
Stockholders' equity
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 92,014,738 shares and 90,515,573 shares			1,254,893				1,231,629
Retained earnings			199,118				210,840
Accumulated other comprehensive loss, net of tax benefits			(32,103	)			(53,015	)
Common stock equity			1,421,908				1,389,454
Preferred stock, no par value, authorized 10,000,000 shares; issued: none			-				-
Noncontrolling interest: cumulative preferred stock of subsidiaries - not subject to mandatory redemption			34,293				34,293
			1,456,201				1,423,747
		$	9,005,013			$	9,295,082
This information should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2008 (included in HEI's Form 8-K dated June 9, 2009) and the consolidated financial statements and the notes thereto in HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009 (when filed).

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
Nine months ended September 30		2009				2008
(in thousands)
Cash flows from operating activities
Net income		$	70,774			$	77,801
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property, plant and equipment			113,916				113,423
Other amortization			4,037				3,927
Provision for loan losses			27,000				4,034
Loans receivable originated and purchased, held for sale			(368,880	)			(159,327	)
Proceeds from sale of loans receivable, held for sale			400,213				157,293
Net loss (gain) on sale of investment and mortgage-related securities			(44	)			17,388
Other-than-temporary impairment of available-for-sale mortgage-related securities			15,444				-
Changes in deferred income taxes			2,958				12,186
Changes in excess tax benefits from share-based payment arrangements			324				(572	)
Allowance for equity funds used during construction			(10,353	)			(6,432	)
Changes in assets and liabilities
Decrease (increase) in accounts receivable and unbilled revenues, net			48,480				(76,034	)
Decrease (increase) in fuel oil stock			9,826				(79,693	)
Increase (decrease) in accounts payable			(641	)			54,460
Changes in prepaid and accrued income taxes and utility revenue taxes			(50,514	)			(29,640	)
Changes in other assets and liabilities			(35,561	)			(13,278	)
Net cash provided by operating activities			226,979				75,536
Cash flows from investing activities
Available-for-sale investment and mortgage-related securities purchased			(247,425	)			(411,658	)
Principal repayments on available-for-sale investment and mortgage-related securities			304,728				489,740
Proceeds from sale of available-for-sale investment and mortgage-related securities			44				1,291,609
Net decrease (increase) in loans held for investment			396,706				(55,828	)
Capital expenditures			(239,441	)			(172,948	)
Contributions in aid of construction			7,472				12,266
Other			426				724
Net cash provided by investing activities			222,510				1,153,905
Cash flows from financing activities
Net decrease in deposit liabilities			(132,234	)			(164,612	)
Net increase in short-term borrowings with original maturities of three months or less			-				138,786
Net decrease in retail repurchase agreements			(18,573	)			(23,290	)
Proceeds from other bank borrowings			310,000				1,719,085
Repayments of other bank borrowings			(604,517	)			(2,820,119	)
Proceeds from issuance of long-term debt			153,186				18,707
Repayment of long-term debt			-				(50,000	)
Changes in excess tax benefits from share-based payment arrangements			(324	)			572
Net proceeds from issuance of common stock			11,004				21,067
Common stock dividends			(73,931	)			(62,493	)
Preferred stock dividends of noncontrolling interest			(1,417	)			(1,417	)
Decrease in cash overdraft			(9,847	)			(8,582	)
Other			(7,232	)			(5,252	)
Net cash used in financing activities			(373,885	)			(1,237,548	)
Net increase (decrease) in cash and equivalents and federal funds sold			75,604				(8,107	)
Cash and equivalents and federal funds sold, beginning of period			183,435				209,855
Cash and equivalents and federal funds sold, end of period		$	259,039			$	201,748
This information should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2008 (included in HEI's Form 8-K dated June 9, 2009) and the consolidated financial statements and the notes thereto in HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009 (when filed).

Hawaiian Electric Company, Inc. (HECO) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
		Three months ended September 30,								Nine months ended September 30,
(dollars in thousands, except per barrel amounts)		2009				2008				2009				2008
Operating revenues		$	546,502			$	826,124			$	1,453,623			$	2,135,265
Operating expenses
Fuel oil			186,719				377,157				463,893				900,455
Purchased power			134,447				202,125				364,120				530,146
Other operation			61,173				61,599				186,751				176,600
Maintenance			25,968				25,174				81,562				72,777
Depreciation			35,557				35,419				108,406				106,254
Taxes, other than income taxes			50,031				74,201				137,741				194,058
Income taxes			15,957				15,035				33,228				47,507
			509,852				790,710				1,375,701				2,027,797
Operating income			36,650				35,414				77,922				107,468
Other income
Allowance for equity funds used during construction			2,628				2,426				10,353				6,432
Other, net			1,657				1,486				6,493				3,693
			4,285				3,912				16,846				10,125
Interest and other charges
Interest on long-term debt			13,601				11,879				37,458				35,413
Amortization of net bond premium and expense			735				632				2,092				1,902
Other interest charges			705				1,352				2,048				3,397
Allowance for borrowed funds used during construction			(1,118	)			(967	)			(4,467	)			(2,564	)
			13,923				12,896				37,131				38,148
Net income			27,012				26,430				57,637				79,445
Less net income attributable to noncontrolling interest - preferred stock of subsidiaries			228				228				686				686
Net income attributable to HECO			26,784				26,202				56,951				78,759
Preferred stock dividends of HECO			270				270				810				810
Net income for common stock		$	26,514			$	25,932			$	56,141			$	77,949
OTHER ELECTRIC UTILITY INFORMATION
Kilowatthour sales (millions)			2,572				2,593				7,203				7,478
Wet-bulb temperature (Oahu average; degrees Fahrenheit)			71.5				70.7				68.5				68.6
Cooling degree days (Oahu)			1,588				1,530				3,591				3,779
Average fuel oil cost per barrel		$	66.40			$	133.99			$	59.21			$	111.37
		Twelve months ended September 30, 2009
		Allowed %1				Actual %
Return on average common equity
(rate-making, simple average method)
HECO			10.50				6.52
HELCO			10.70				6.17
MECO			10.70				4.74
1 Based on interim decisions which are subject to final PUC decisions. Allowed ROACEs for HECO, HELCO and MECO based on their last final rate case decisions were 10.70, 11.50 and 10.94, respectively.
This information should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2008 (included in HECO Exhibit 99.2 to HECO's Form 8-K dated June 9, 2009) and the consolidated financial statements and the notes thereto in HECO's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

Hawaiian Electric Company, Inc. (HECO) and Subsidiaries CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands, except par value)		September 30, 2009				December 31, 2008
Assets
Utility plant, at cost
Land		$	51,401			$	42,541
Plant and equipment			4,612,113				4,277,499
Less accumulated depreciation			(1,822,860	)			(1,741,453	)
Construction in progress			155,465				266,628
Net utility plant			2,996,119				2,845,215
Current assets
Cash and equivalents			6,486				6,901
Customer accounts receivable, net			133,709				166,422
Accrued unbilled revenues, net			92,361				106,544
Other accounts receivable, net			8,208				7,918
Fuel oil stock, at average cost			67,889				77,715
Materials and supplies, at average cost			36,357				34,532
Prepayments and other			13,879				12,626
Total current assets			358,889				412,658
Other long-term assets
Regulatory assets			535,287				530,619
Unamortized debt expense			15,184				14,503
Other			69,400				53,114
Total other long-term assets			619,871				598,236
		$	3,974,879			$	3,856,109
Capitalization and liabilities
Capitalization
Common stock, $6 2/3 par value, authorized 50,000 shares; outstanding 12,806 shares		$	85,387			$	85,387
Premium on capital stock			299,207				299,214
Retained earnings			825,975				802,590
Accumulated other comprehensive income, net of income taxes			1,824				1,651
Common stock equity			1,212,393				1,188,842
Cumulative preferred stock - not subject to mandatory redemption			22,293				22,293
Noncontrolling interest - cumulative preferred stock of subsidiaries - not subject to mandatory redemption			12,000				12,000
Stockholders' equity			1,246,686				1,223,135
Long-term debt, net			1,057,784				904,501
Total capitalization			2,304,470				2,127,636
Current liabilities
Short-term borrowings–affiliate			10,700				41,550
Accounts payable			118,042				122,994
Interest and preferred dividends payable			21,096				15,397
Taxes accrued			155,211				220,046
Other			48,389				55,268
Total current liabilities			353,438				455,255
Deferred credits and other liabilities
Deferred income taxes			178,336				166,310
Regulatory liabilities			282,239				288,602
Unamortized tax credits			57,885				58,796
Retirement benefits liability			399,539				392,845
Other			83,517				54,949
Total deferred credits and other liabilities			1,001,516				961,502
Contributions in aid of construction			315,455				311,716
		$	3,974,879			$	3,856,109
This information should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2008 (included in HECO Exhibit 99.2 to HECO's Form 8-K dated June 9, 2009) and the consolidated financial statements and the notes thereto in HECO's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009 (when filed).

Hawaiian Electric Company, Inc. (HECO) and Subsidiaries CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
Nine months ended September 30		2009				2008
(in thousands)
Cash flows from operating activities
Net income		$	57,637			$	79,445
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property, plant and equipment			108,406				106,254
Other amortization			7,702				6,426
Changes in deferred income taxes			12,532				6,588
Changes in tax credits, net			(501	)			1,503
Allowance for equity funds used during construction			(10,353	)			(6,432	)
Changes in assets and liabilities
Decrease (increase) in accounts receivable			32,423				(59,551	)
Decrease (increase) in accrued unbilled revenues			14,183				(23,394	)
Decrease (increase) in fuel oil stock			9,826				(79,693	)
Increase in materials and supplies			(1,825	)			(3,435	)
Increase in regulatory assets			(13,829	)			(28	)
Increase (decrease) in accounts payable			(4,952	)			46,324
Changes in prepaid and accrued income and utility revenue taxes			(62,388	)			(7,969	)
Changes in other assets and liabilities			3,360				(5,386	)
Net cash provided by operating activities			152,221				60,652
Cash flows from investing activities
Capital expenditures			(237,664	)			(170,321	)
Contributions in aid of construction			7,472				12,266
Other			340				749
Net cash used in investing activities			(229,852	)			(157,306	)
Cash flows from financing activities
Common stock dividends			(32,756	)			(14,088	)
Preferred stock dividends			(1,496	)			(1,496	)
Proceeds from issuance of long-term debt			153,186				18,707
Net increase (decrease) in short-term borrowings from
nonaffiliates and affiliate with original maturities of three months or less			(30,850	)			112,204
Decrease in cash overdraft			(9,847	)			(8,582	)
Other			(1,021	)			-
Net cash provided by financing activities			77,216				106,745
Net increase (decrease) in cash and equivalents			(415	)			10,091
Cash and equivalents, beginning of period			6,901				4,678
Cash and equivalents, end of period		$	6,486			$	14,769
This information should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2008 (included in HECO Exhibit 99.2 to HECO's Form 8-K dated June 9, 2009) and the consolidated financial statements and the notes thereto in HECO's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009 (when filed).

American Savings Bank, F.S.B. and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
		Three months ended											Nine months ended
		September 30,				June 30,				September 30,			September 30,
(dollars in thousands)		2009				2009				2008			2009				2008
Interest and dividend income
Interest and fees on loans		$	53,080			$	55,363			$	61,100		$	166,535			$	186,312
Interest and dividends on investment and mortgage-related securities			6,943				7,143				9,898			21,762				57,078
			60,023				62,506				70,998			188,297				243,390
Interest expense
Interest on deposit liabilities			7,286				9,902				14,070			28,753				47,909
Interest on other borrowings			2,205				2,241				4,616			7,710				40,030
			9,491				12,143				18,686			36,463				87,939
Net interest income			50,532				50,363				52,312			151,834				155,451
Provision for loan losses			5,200				13,500				1,979			27,000				4,034
Net interest income after provision for loan losses			45,332				36,863				50,333			124,834				151,417
Noninterest income
Fee income on deposit liabilities			8,211				7,462				7,328			22,384				20,889
Fees from other financial services			6,385				6,443				6,318			18,747				18,554
Fee income on other financial products			1,613				1,628				1,771			4,285				5,214
Net losses on available-for-sale securities *			(9,863	)			(5,537	)			-			(15,400	)			(17,388	)
(includes impairment losses of $9,863 and $15,444, consisting of $13,645 and $32,167 of total other-than-temporary impairment losses, net of $3,782 and $16,723 of non-credit losses, recognized in other comprehensive income, for the quarter and nine months ended September 30, 2009, respectively)
Other income			5,578				2,997				1,260			11,165				8,810
			11,924				12,993				16,677			41,181				36,079
Noninterest expense
Compensation and employee benefits			17,721				17,991				19,172			55,072				56,451
Occupancy			4,905				5,922				5,489			15,956				16,276
Data processing			3,684				3,481				2,794			10,352				8,019
Services			2,437				3,801				3,688			9,656				13,531
Equipment			1,782				2,540				3,175			7,112				9,510
Loss on early extinguishment of debt *			-				60				-			101				39,843
Other expense			9,062				10,579				8,085			27,527				26,932
			39,591				44,374				42,403			125,776				170,562
Income before income taxes			17,665				5,482				24,607			40,239				16,934
Income taxes *			6,342				1,461				9,202			14,013				5,046
Net income		$	11,323			$	4,021			$	15,405		$	26,226			$	11,888
OTHER BANK INFORMATION (%)
Return on average assets			0.89				0.31				1.11			0.68				0.25
Return on average equity			9.40				3.41				11.09			7.35				2.73
Net interest margin			4.23				4.16				4.08			4.17				3.49
Net charge-offs to average loans outstanding (annualized)			0.19				1.31				0.07			0.56				0.08
Efficiency ratio			63				70				61			65				89
As of period end
Nonperforming assets to loans outstanding and real estate owned **			1.61				1.55				0.25
Allowance for loan losses to loans outstanding			1.21				1.09				0.75
Tier-1 leverage ratio			9.1				8.7				8.4
* Net income included a $35.6 million after-tax charge related to ASB's balance sheet restructuring in June 2008. The $35.6 million is comprised of: (1) realized losses on the sale of mortgage-related securities and agency notes of $19.3 million included in "Noninterest income-Net losses on available-for-sale securities," (2) fees associated with the early retirement of other bank borrowings of $39.8 million included in "Noninterest expense-Loss on early extinguishment of debt" and (3) income tax benefits of $23.5 million included in "Income taxes."
** Regulatory basis
This information should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2008 (included in HEI Exhibit 13 to HEI's Form 8-K dated June 9, 2009) and the consolidated financial statements and the notes thereto in HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009 (when filed). Results of operations for interim periods are not necessarily indicative of future interim periods or the results to be expected for full year.

American Savings Bank, F.S.B. and Subsidiaries CONSOLIDATED BALANCE SHEETS DATA (Unaudited)
(in thousands)		September 30, 2009				December 31, 2008
Assets
Cash and equivalents		$	222,286			$	168,766
Federal funds sold			1,708				532
Available-for-sale investment and mortgage-related securities			623,104				657,717
Investment in stock of Federal Home Loan Bank of Seattle			97,764				97,764
Loans receivable, net			3,758,898				4,206,492
Other			211,773				223,659
Goodwill, net			82,190				82,190
		$	4,997,723			$	5,437,120
Liabilities and stockholder's equity
Deposit liabilities–noninterest-bearing		$	751,893			$	701,090
Deposit liabilities–interest-bearing			3,296,047				3,479,085
Other borrowings			367,884				680,973
Other			91,643				98,598
			4,507,467				4,959,746
Common stock			329,292				328,162
Retained earnings			188,437				197,235
Accumulated other comprehensive loss, net of tax benefits			(27,473	)			(48,023	)
			490,256				477,374
		$	4,997,723			$	5,437,120
This information should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2008 (included in HEI Exhibit 13 to HEI's Form 8-K dated June 9, 2009) and the consolidated financial statements and the notes thereto in HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009 (when filed).

American Savings Bank, F.S.B. and Subsidiaries RECONCILIATION OF GAAP TO NON-GAAP MEASURES (Unaudited)
(in thousands)		3Q08				4Q08				1Q09				2Q09				3Q09
Noninterest income
Per income statement - GAAP		$	16,677			$	10,056			$	16,264			$	12,993			$	11,924
Other-than-temporary impairment of mortgage-related securities			-				7,764				-				5,581				9,863
Gain on sale of a commercial loan			-				-				-				-				(2,951	)
Adjusted noninterest income		$	16,677			$	17,820			$	16,264			$	18,574			$	18,836
Noninterest expense
Per income statement - GAAP		$	42,403			$	45,442			$	41,811			$	44,374			$	39,591
Real estate transactions			-				-				-				(1,180	)			(1,076	)
Professional services			-				-				(616	)			(1,238	)			(600	)
FISERV conversion costs			-				-				-				(159	)			(572	)
Severance			(222	)			(1,560	)			(673	)			(393	)			(301	)
FDIC special assessment			-				-				-				(2,338	)			-
Technology write-offs			-				-				-				(145	)			-
Prepayment penalty on early extinguishment of debt			-				-				(41	)			(60	)			-
Bishop Insurance Agency sale			-				(890	)			-				-				-
Adjusted noninterest expense		$	42,181			$	42,992			$	40,481			$	38,861			$	37,042
Other bank information
Noninterest expense (annualized)
Reported		$	169,612			$	181,768			$	167,244			$	177,496			$	158,364
Adjusted			168,724				171,968				161,924				155,444				148,168
Efficiency ratio
Reported			61	%			74	%			62	%			70	%			63	%
Adjusted			61	%			62	%			60	%			56	%			53	%
Pretax, preprovision income (annualized)
Reported		$	106,344			$	64,628			$	101,568			$	75,928			$	91,460
Adjusted			107,232				105,484				106,888				120,304				129,304
Return on average assets
Reported			1.11	%			0.44	%			0.82	%			0.31	%			0.89	%
Adjusted			1.12	%			0.92	%			0.88	%			0.83	%			1.34	%

Shelee M.T. Kimura, 808-543-7384
Manager, Investor Relations & Strategic Planning
Facsimile: 808-203-1164
skimura@hei.com