HAWAIIAN ELECTRIC INDUSTRIES INC - FORM 8-K - EX-99 - EXHIBIT 99

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8-K - 8-K - HAWAIIAN ELECTRIC INDUSTRIES INC	heiheco8-k02x28x14.htm

Exhibit 99

Hawaiian Electric Industries, Inc.

2013 Statistical Supplement



TABLE OF CONTENTS

		Page
Forward-Looking Statements		ii

HEI Consolidated
Selected Financial Information		1
Consolidated Statements of Income & Comprehensive Income Information		2
Consolidated Balance Sheets Information		3
Consolidated Statements of Changes in Shareholders' Equity Information		4
Consolidated Statements of Cash Flows Information		5
Consolidated Capital Structure		7
GAAP and Non-GAAP (Core) Earnings and Return on Average Common Equity		8

Hawaiian Electric Company
Selected Financial Information		9
Consolidated Statements of Income and Retained Earnings Information		10
Consolidated Balance Sheets Information		11
Consolidated Statements of Cash Flows Information		12
Cumulative Preferred Stock Not Subject to Mandatory Redemption		13
Long-term Debt		14
Customer, Sales and Revenue Information		16
Power Supply Information		18

American Savings Bank
Selected Information		20
Consolidated Statements of Income Information		21
Consolidated Balance Sheets Information		22

Other
State of Hawaii Information		23
Appendix - Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures		24

Forward-Looking Statements

This report and other presentations made by Hawaiian Electric Industries, Inc. (HEI) and Hawaiian Electric Company, Inc. (Hawaiian Electric) 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 described 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, defense 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, the implications and potential impacts of U.S. and foreign capital and credit market conditions and federal, state and international responses to those conditions, and the potential impacts of global developments (including global economic conditions and uncertainties, unrest, ongoing conflicts in North Africa and the Middle East, terrorist acts and potential conflict or crisis with North Korea or Iran);


•	the effects of future actions or inaction of the U.S. government or related agencies, including those related to the U.S. debt ceiling and monetary policy;


•	weather and natural disasters (e.g., hurricanes, earthquakes, tsunamis, lightning strikes and the potential effects of climate change, such as more severe storms and rising sea levels), including their impact on Company operations and the economy;


•	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 the Company’s pension and other retirement plan assets and ASB’s securities available for sale;


•	changes in laws, regulations, market conditions and other factors that result in changes in assumptions used to calculate retirement benefits costs and funding requirements;


•	the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) and of the rules and regulations that the Dodd-Frank Act requires to be promulgated;


•	increasing competition in the banking industry (e.g., increased price competition for deposits, or an outflow of deposits to alternative investments, which 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), and the fulfillment by the electric 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 (and potential disapproval of actual or proposed) HCEI-related costs; reliance by the Company on outside parties such as the state, independent power producers (IPPs) and developers; potential changes in political support for the HCEI; and uncertainties surrounding wind power, proposed undersea cables, 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, combined heat and power or other firm capacity supply-side resources fall short of achieving their forecasted benefits or are otherwise insufficient to reduce or meet peak demand;


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


•	the continued availability to the electric utilities of other cost recovery mechanisms, including the purchased power adjustment clauses (PPACs), revenue adjustment mechanisms (RAMs) and pension and postretirement benefits other than pensions (OPEB) tracking mechanisms, and the continued decoupling of revenues from sales;


•	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 energy 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 agreements for significant resources such as fuel supply contracts and collective bargaining agreements;


•	new technological developments that could affect the operations and prospects of HEI, ASB and Hawaiian Electric and their subsidiaries or their competitors;

•

cyber security risks and the potential for cyber incidents, including potential incidents at HEI, ASB and Hawaiian Electric and their subsidiaries (including at ASB branches and electric utility plants) and incidents at data processing centers they use, to the extent not prevented by intrusion detection and prevention systems, anti-virus software, firewalls and other general information technology controls;

•

federal, state, county and international governmental and regulatory actions, such as existing, new and changes in laws, rules and regulations applicable to HEI, Hawaiian Electric, ASB and their subsidiaries (including changes in taxation, increases in capital requirements, regulatory changes resulting from the HCEI, environmental laws and regulations (including resulting compliance costs and risks of fines and penalties and/or liabilities), the regulation of greenhouse gas (GHG) emissions, governmental fees and assessments (such as Federal Deposit Insurance Corporation assessments), and potential carbon “cap and trade” legislation that may fundamentally alter costs to produce electricity and accelerate the move to renewable generation);


•	decisions by the PUC in rate cases and other proceedings (including the risks of delays in the timing of decisions, adverse changes in final decisions from interim decisions and the disallowance of project costs as a result of adverse regulatory audit reports or otherwise);


•	decisions 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, such as with respect to environmental conditions or renewable portfolio standards (RPS));

•

potential enforcement actions by the Office of the Comptroller of the Currency, the Federal Reserve Board (FRB), the Federal Deposit Insurance Corporation (FDIC) and/or other governmental authorities (such as consent orders, required corrective actions, restrictions and penalties that may arise, for example, with respect to compliance deficiencies under existing or new banking and consumer protection laws and regulations or with respect to capital adequacy);


•	the ability of the electric utilities to recover increasing costs and earn a reasonable return on capital investments not covered by revenue adjustment mechanisms;


•	the risks associated with the geographic concentration of HEI’s businesses and ASB’s loans, ASB’s concentration in a single product type (i.e., 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, Hawaiian Electric, ASB and their subsidiaries, including the possible adoption of International Financial Reporting Standards or new U.S. accounting standards, the potential discontinuance of regulatory accounting and the effects of potentially required consolidation of variable interest entities (VIEs) or required capital lease accounting for PPAs with IPPs;


•	changes by securities rating agencies in their ratings of the securities of HEI and Hawaiian Electric 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 provision for loan losses, 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, Hawaiian Electric, ASB and their subsidiaries;


•	the risks of suffering losses and incurring liabilities that are uninsured (e.g., damages to the Utilities’ transmission and distribution system and losses from business interruption) or underinsured (e.g., losses not covered as a result of insurance deductibles or other exclusions or exceeding policy limits); and


•	other risks or uncertainties described elsewhere in other reports (e.g., Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K) previously and subsequently filed by HEI and/or Hawaiian Electric 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, Hawaiian Electric, 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.

iii

SELECTED FINANCIAL INFORMATION

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited



Years ended December 31	2013			2012			2011			2010			2009
(dollars in thousands, except per share amounts)
Results of operations
Revenues	$	3,238,470		$	3,374,995		$	3,242,335		$	2,664,982		$	2,309,590
Net income for common stock	161,516			138,658			138,230			113,535			83,011
Basic earnings per common share	1.63			1.43			1.45			1.22			0.91
Diluted earnings per common share	1.62			1.42			1.44			1.21			0.91
Dividends per common share	1.24			1.24			1.24			1.24			1.24
Operating income (loss)
Electric utility	$	245,513		$	213,012		$	215,134		$	178,388		$	169,671
Bank	87,057			88,433			91,601			92,588			31,764
Other	(17,151		)	(17,249		)	(17,039		)	(14,765		)	(13,771		)
	$	315,419		$	284,196		$	289,696		$	256,211		$	187,664
Assets ¹
Electric utility	$	5,087,129		$	5,108,793		$	4,674,007		$	4,287,745		$	3,980,457
Bank	5,243,824			5,041,673			4,909,974			4,796,759			4,940,985
Other	9,091			(1,334		)	10,496			2,905			3,560
	$	10,340,044		$	10,149,132		$	9,594,477		$	9,087,409		$	8,925,002
Capital structure^{1, 2}
Short-term borrowings - other than bank	$	105,482		$	83,693		$	68,821		$	24,923		$	41,989
Long-term debt, net - other than bank	1,492,945			1,422,872			1,340,070			1,364,942			1,364,815
Preferred stock of subsidiaries	34,293			34,293			34,293			34,293			34,293
Common stock equity	1,727,070			1,593,865			1,528,706			1,480,394			1,438,405
	$	3,359,790		$	3,134,723		$	2,971,890		$	2,904,552		$	2,879,502
Capital structure ratios ^{1, 2}
Short-term borrowings - other than bank	3.2		%	2.7		%	2.3		%	0.8		%	1.5		%
Long-term debt, net - other than bank	44.4			45.4			45.1			47.0			47.4
Preferred stock of subsidiaries	1.0			1.1			1.2			1.2			1.2
Common stock equity	51.4			50.8			51.4			51.0			49.9
	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%
Key financial ratios
Market price to book value per common share ¹	153		%	154		%	166		%	146		%	134		%
Price earnings ratio³	16.0x			17.6x			18.3x			18.7x			23.0x
Return on average common equity	9.7		%	8.9		%	9.2		%	7.8		%	5.9		%
Indicated annual yield¹	4.8		%	4.9		%	4.7		%	5.4		%	5.9		%
Dividend payout ratio	76		%	87		%	86		%	102		%	137		%
Full-time employees
Hawaiian Electric and its subsidiaries	2,764			2,658			2,518			2,317			2,297
ASB and its subsidiaries	1,159			1,170			1,096			1,075			1,119
Consolidated HEI	3,966			3,870			3,654			3,426			3,453

¹At December 31. The Company has revised its electric utilities’ previously issued financial statements to correct an error that resulted in the understatement of franchise taxes, net of tax benefits, that should have been recorded in years prior to 2008.


²	Excludes ASB's deposit liabilities and other borrowings.


³	Calculated using December 31 market price per common share divided by basic earnings per common share.

Note: This report should be read in conjunction with HEI’s Form 10-K for each year.

CONSOLIDATED STATEMENTS OF INCOME INFORMATION

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited



Years ended December 31	2013			2012			2011			2010			2009
(in thousands, except per share amounts)
Revenues
Electric utility	$	2,980,172		$	3,109,439		$	2,978,690		$	2,382,366		$	2,035,009
Bank	258,147			265,539			264,407			282,693			274,719
Other	151			17			(762		)	(77		)	(138		)
Total revenues	3,238,470			3,374,995			3,242,335			2,664,982			2,309,590
Expenses
Electric utility	2,734,659			2,896,427			2,763,556			2,203,978			1,865,338
Bank	171,090			177,106			172,806			190,105			242,955
Other	17,302			17,266			16,277			14,688			13,633
Total expenses	2,923,051			3,090,799			2,952,639			2,408,771			2,121,926
Operating income (loss)
Electric utility	245,513			213,012			215,134			178,388			169,671
Bank	87,057			88,433			91,601			92,588			31,764
Other	(17,151		)	(17,249		)	(17,039		)	(14,765		)	(13,771		)
Total operating income	315,419			284,196			289,696			256,211			187,664
Interest expense, net - other than on deposit liabilities
and other bank borrowings	(75,479		)	(78,151		)	(82,106		)	(81,538		)	(76,330		)
Allowance for borrowed funds used during construction	2,246			4,355			2,498			2,558			5,268
Allowance for equity funds used during construction	5,561			7,007			5,964			6,016			12,222
Income before income taxes	247,747			217,407			216,052			183,247			128,824
Income taxes	84,341			76,859			75,932			67,822			43,923
Net income	163,406			140,548			140,120			115,425			84,901
Preferred stock dividends of subsidiaries	1,890			1,890			1,890			1,890			1,890
Net income for common stock	$	161,516		$	138,658		$	138,230		$	113,535		$	83,011
Basic earnings per common share	$	1.63		$	1.43		$	1.45		$	1.22		$	0.91
Diluted earnings per common share	$	1.62		$	1.42		$	1.44		$	1.21		$	0.91
Dividends per common share	$	1.24		$	1.24		$	1.24		$	1.24		$	1.24
Weighted-average number of common shares outstanding	98,968			96,908			95,510			93,421			91,396
Adjusted weighted-average shares	99,623			97,338			95,820			93,693			91,516

Note: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME INFORMATION

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited



Years ended December 31	2013			2012			2011			2010			2009
(in thousands)
Net income for common stock	$	161,516		$	138,658		$	138,230		$	113,535		$	83,011
Other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on securities:
Net unrealized gains (losses) arising during the period, net of taxes	(13,686		)	956			6,578			(1,196		)	12,938
Less: reclassification adjustment for net realized
losses (gains) included in net income, net of taxes	(738		)	(81		)	(224		)	—			28,596
Derivatives qualified as cash flow hedges:
Net unrealized holding losses arising during
the period, net of tax benefits	—			—			(8		)	(1,169		)	—
Less: reclassification adjustment to net income, net of tax benefits	235			236			181			—			—
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	—			—			6,943			4,712			1,446
Net gains (losses) arising during the period, net of taxes	223,177			(99,159		)	(130,191		)	(44,626		)	64,547
Less: amortization of transition obligation, prior service credit and
net losses recognized during the period in net
periodic benefit cost, net of tax benefits	23,280			15,291			9,364			4,030			10,754
Less: reclassification adjustment for impact of D&Os
of the PUC included in regulatory assets, net of taxes	(222,595		)	75,471			100,692			33,499			(75,756		)
Other comprehensive income (loss), net of taxes	9,673			(7,286		)	(6,665		)	(4,750		)	49,074
Comprehensive income attributable to Hawaiian Electric Industries, Inc.	$	171,189		$	131,372		$	131,565		$	108,785		$	132,085

Note: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.

CONSOLIDATED BALANCE SHEETS INFORMATION

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited



December 31	2013			2012			2011			2010			2009
(in thousands)
ASSETS
Cash and cash equivalents	$	220,036		$	219,662		$	270,265		$	330,651		$	503,922
Accounts receivable and unbilled revenues, net	346,785			362,823			344,322			266,996			241,116
Available-for-sale investment and mortgage-related securities	529,007			671,358			624,331			678,152			432,881
Investment in stock of Federal Home Loan Bank of Seattle	92,546			96,022			97,764			97,764			97,764
Loans receivable, net	4,115,415			3,763,238			3,652,419			3,497,729			3,670,493
Property, plant and equipment, net	3,858,947			3,594,829			3,334,501			3,165,918			3,088,611
Regulatory assets	575,924			864,596			669,389			478,330			426,862
Other¹	519,194			494,414			519,296			489,679			381,163
Goodwill	82,190			82,190			82,190			82,190			82,190
Total assets	$	10,340,044		$	10,149,132		$	9,594,477		$	9,087,409		$	8,925,002

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Accounts, interest and dividends payable	$	239,047		$	238,637		$	241,217		$	230,260		$	186,994
Deposit liabilities	4,372,477			4,229,916			4,070,032			3,975,372			4,058,760
Short-term borrowings - other than bank	105,482			83,693			68,821			24,923			41,989
Other bank borrowings	244,514			195,926			233,229			237,319			297,628
Long-term debt, net - other than bank	1,492,945			1,422,872			1,340,070			1,364,942			1,364,815
Deferred income taxes	529,260			439,329			354,051			278,958			188,875
Regulatory liabilities	349,299			324,152			315,466			296,797			288,214
Contributions in aid of construction	432,894			405,520			356,203			335,364			321,544
Other¹	812,763			1,180,929			1,052,389			828,787			703,485
Total liabilities	8,578,681			8,520,974			8,031,478			7,572,722			7,452,304
Preferred stock of subsidiaries - not subject to mandatory redemption	34,293			34,293			34,293			34,293			34,293
Shareholders' equity
Preferred stock	—			—			—			—			—
Common stock¹	1,488,126			1,403,484			1,349,446			1,314,199			1,265,157
Retained earnings	255,694			216,804			198,397			178,667			180,970
Accumulated other comprehensive loss, net of tax benefits	(16,750		)	(26,423		)	(19,137		)	(12,472		)	(7,722		)
Total shareholders' equity	1,727,070			1,593,865			1,528,706			1,480,394			1,438,405
Total liabilities and shareholders' equity	$	10,340,044		$	10,149,132		$	9,594,477		$	9,087,409		$	8,925,002


¹	Certain reclassifications have been made to prior years' financial statements to conform to the 2012 presentation, which did not affect previously reported results of operations.

Note: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY INFORMATION

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited



							Accumulated
							other
	Common stock			Retained			comprehensive
(in thousands, except per share amounts)	Shares	Amount		earnings			income (loss)			Total
Balance, December 31, 2008	90,516	$	1,231,629	$	207,597		$	(53,015	)	$	1,386,211
Net income for common stock	—	—		83,011			—			83,011
Other comprehensive income, net of taxes	—	—		—			49,074			49,074
Cumulative effect of adoption of a standard on other-
than-temporary impairment recognition, net of taxes	—	—		3,781			(3,781		)	—
Issuance of common stock:
Dividend reinvestment and stock purchase plan	1,714	27,701		—			—			27,701
Retirement savings and other plans	291	4,771		—			—			4,771
Expenses and other, net	—	1,056		—			—			1,056
Common stock dividends	—	—		(113,419		)	—			(113,419		)
Balance, December 31, 2009	92,521	1,265,157		180,970			(7,722		)	1,438,405
Net income for common stock	—	—		113,535			—			113,535
Other comprehensive loss, net of tax benefits	—	—		—			(4,750		)	(4,750		)
Issuance of common stock:
Dividend reinvestment and stock purchase plan	1,685	37,296		—			—			37,296
Retirement savings and other plans	485	8,934		—			—			8,934
Expenses and other, net	—	2,812		—			—			2,812
Common stock dividends	—	—		(115,838		)	—			(115,838		)
Balance, December 31, 2010	94,691	1,314,199		178,667			(12,472		)	1,480,394
Net income for common stock	—	—		138,230			—			138,230
Other comprehensive loss, net of tax benefits	—	—		—			(6,665		)	(6,665		)
Issuance of common stock:
Dividend reinvestment and stock purchase plan	879	21,217		—			—			21,217
Retirement savings and other plans	468	10,318		—			—			10,318
Expenses and other, net	—	3,712		—			—			3,712
Common stock dividends	—	—		(118,500		)	—			(118,500		)
Balance, December 31, 2011	96,038	1,349,446		198,397			(19,137		)	1,528,706
Net income for common stock	—	—		138,658			—			138,658
Other comprehensive loss, net of tax benefits	—	—		—			(7,286		)	(7,286		)
Issuance of common stock:
Dividend reinvestment and stock purchase plan	1,560	41,295		—			—			41,295
Retirement savings and other plans	330	8,196		—			—			8,196
Expenses and other, net	—	4,547		—			—			4,547
Dividend equivalents paid on equity-classified awards	—	—		(101		)	—			(101		)
Common stock dividends	—	—		(120,150		)	—			(120,150		)
Balance, December 31, 2012	97,928	1,403,484		216,804			(26,423		)	1,593,865
Net income for common stock	—	—		161,516			—			161,516
Other comprehensive loss, net of tax benefits	—	—		—			9,673			9,673
Issuance of common stock:
Partial settlement of equity forward	1,300	33,409		—			—			33,409
Dividend reinvestment and stock purchase plan	1,612	41,692		—			—			41,692
Retirement savings and other plans	420	9,203		—			—			9,203
Expenses and other, net	—	338		—			—			338
Common stock dividends	—	—		(122,626		)	—			(122,626		)
Balance, December 31, 2013	101,260	$	1,488,126	$	255,694		$	(16,750	)	$	1,727,070

Note: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.

CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited



Years ended December 31					2013			2012			2011			2010			2009

(in thousands)
Cash flows from operating activities
Net income					$	163,406		$	140,548		$	140,120		$	115,425		$	84,901
Adjustments to reconcile net income
	to net cash provided by operating activities
		Depreciation of property, plant and equipment			160,061			150,389			148,152			154,523			151,282
		Other amortization			4,667			7,958			19,318			4,605			5,389
		Provision for loan losses			1,507			12,883			15,009			20,894			32,000
		Impairment of utility assets			—			40,000			9,215			—			—
		Loans receivable originated and purchased, held for sale			(249,022		)	(519,622		)	(267,656		)	(360,527		)	(443,843		)
		Proceeds from sale of loans receivable, held for sale			273,775			513,000			273,932			392,406			471,194
		Net losses (gains) on sale of investment
			and mortgage-related securities		(1,226		)	(134		)	(371		)	—			32,034
		Other-than-temporary impairment on
			available-for-sale mortgage-related securities		—			—			—			—			15,444
		Increase in deferred income taxes			80,399			90,848			79,444			97,791			12,787
		Excess tax benefits from share-based payment arrangements			(430		)	(61		)	—			—			—
		Allowance for equity funds used during construction			(5,561		)	(7,007		)	(5,964		)	(6,016		)	(12,222		)
		Change in cash overdraft			1,038			—			(2,688		)	(141		)	—
		Changes in assets and liabilities
			Decrease (increase) in accounts receivable
				and unbilled revenues, net	16,038			(18,501		)	(77,326		)	(25,880		)	59,550
			Increase (decrease) in accounts,
				interest and dividends payable	(23,153		)	(39,738		)	(34,480		)	22,410			3,410
			Change in other assets and liabilities		(94,353		)	(136,021		)	(46,339		)	(74,773		)	(127,458		)
Net cash provided by operating activities					327,146			234,542			250,366			340,717			284,468
Cash flows from investing activities
Available-for-sale investment and mortgage-related
	securities purchased				(112,654		)	(243,633		)	(361,876		)	(714,552		)	(297,864		)
Principal repayments on available-for-sale investment
	and mortgage-related securities				158,558			191,253			389,906			465,437			357,233
Proceeds from sale of available-for-sale investment
	and mortgage-related securities				71,367			3,548			32,799			—			185,134
Net decrease (increase) in loans held for investment					(398,426		)	(112,730		)	(181,080		)	118,892			484,960
Proceeds from sale of real estate
	acquired in settlement of loans				9,212			11,336			8,020			5,967			1,555
Capital expenditures					(353,879		)	(325,480		)	(235,116		)	(182,125		)	(304,761		)
Contributions in aid of construction					32,160			45,982			23,534			22,555			14,170
Other					29,902			2,677			(2,974		)	5,092			1,199
Net cash provided by (used in) investing activities					$	(563,760	)	$	(427,047	)	$	(326,787	)	$	(278,734	)	$	441,626

(Continued on next page)

CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION (Continued)

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited



Years ended December 31		2013			2012			2011			2010			2009

(in thousands)

Cash flows from financing activities
Net increase (decrease) in deposit liabilities		$	142,561		$	159,884		$	94,660		$	(83,388	)	$	(121,415	)
Net increase (decrease) in short-term borrowings
	with original maturities of three months or less	21,789			14,872			43,898			(17,066		)	41,989
Net increase (decrease) in retail repurchase agreements		(1,418		)	(37,291		)	10,910			(60,308		)	(3,829		)
Proceeds from other bank borrowings		130,000			5,000			—			—			310,000
Repayments of other bank borrowings		(80,000		)	(5,000		)	(15,000		)	—			(689,517		)
Proceeds from issuance of long-term debt		286,000			457,000			125,000			—			153,186
Repayment of long-term debt		(216,000		)	(375,500		)	(150,000		)	—			—
Excess tax benefits from share-based payment
	arrangements	430			61			—			—			—
Net proceeds from issuance of common stock		55,086			23,613			15,979			22,706			15,329
Common stock dividends		(98,383		)	(96,202		)	(106,812		)	(93,034		)	(96,843		)
Preferred stock dividends of subsidiaries		(1,890		)	(1,890		)	(1,890		)	(1,890		)	(1,890		)
Other		(1,187		)	(2,645		)	(710		)	(2,274		)	(12,617		)
Net cash provided by (used in) financing activities		236,988			141,902			16,035			(235,254		)	(405,607		)
Net increase (decrease) in cash and cash equivalents		374			(50,603		)	(60,386		)	(173,271		)	320,487
Cash and cash equivalents, January 1		219,662			270,265			330,651			503,922			183,435
Cash and cash equivalents, December 31		$	220,036		$	219,662		$	270,265		$	330,651		$	503,922

Note: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.

CONSOLIDATED CAPITAL STRUCTURE

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited



December 31	2013			2012			2011			2010			2009
(in thousands)
Short-term borrowings - other than bank¹	$	105,482		$	83,693		$	68,821		$	24,923		$	41,989
Long-term debt - other than bank¹
Long-term debt of electric utility subsidiaries²	1,217,945			1,147,872			1,058,070			1,057,942			1,057,815
HEI, senior notes, 4.41% due 2016	75,000			75,000			75,000			—			—
HEI, senior notes, 5.67% due 2021	50,000			50,000			50,000			—			—
HEI, senior notes, 3.99% due 2023	50,000			—			—			—			—
HEI, medium-term notes, Series B 7.13%, paid in 2012	—			—			7,000			7,000			7,000
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 D 5.25% due in 2013	—			50,000			50,000			50,000			50,000
HEI, medium-term notes, Series D 4.23% paid in 2011	—			—			—			50,000			50,000
HEI, medium-term notes, Series D 6.141% paid in 2011	—			—			—			100,000			100,000
	1,492,945			1,422,872			1,340,070			1,364,942			1,364,815
Preferred stock of subsidiaries - not subject to mandatory redemption	34,293			34,293			34,293			34,293			34,293
Shareholders' equity
Preferred stock	—			—			—			—			—
Common stock	1,488,126			1,403,484			1,349,446			1,314,199			1,265,157
Retained earnings	255,694			216,804			198,397			178,667			180,970
Accumulated other comprehensive loss, net of tax benefits	(16,750		)	(26,423		)	(19,137		)	(12,472		)	(7,722		)
	1,727,070			1,593,865			1,528,706			1,480,394			1,438,405
	$	3,359,790		$	3,134,723		$	2,971,890		$	2,904,552		$	2,879,502

LONG-TERM DEBT MATURITIES

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited



		2014		2015		2016		2017		2018		Thereafter		Total
(in thousands)
Long-term debt - other than bank ¹
	Electric utilities	$	11,400	$	—	$	—	$	—	$	50,000	$	1,156,545	$	1,217,945
	HEI	100,000		—		75,000		—		—		100,000		275,000
		$	111,400	$	—	$	75,000	$	—	$	50,000	$	1,256,545	$	1,492,945


¹	Excludes deposit liabilities, other bank borrowings and intercompany borrowings.


²	See pages 14 and 15 for additional information.

Note: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.

GAAP EARNINGS AND RETURN ON AVERAGE COMMON EQUITY BY COMPANY

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited



Years ended December 31		2013			2012			2011			2010			2009
(dollars in thousands)
Net income (loss) for common stock by company
Electric utilities
	Hawaiian Electric	$	81,519		$	70,440		$	55,370		$	50,989		$	53,621
	Hawaii Electric Light	20,136			16,212			26,651			16,608			15,761
	Maui Electric	21,277			12,627			17,974			9,012			10,224
Other subsidiaries		(3		)	(3		)	(9		)	(20		)	(160		)
		122,929			99,276			99,986			76,589			79,446
ASB consolidated		57,534			58,637			59,843			58,456			21,767
HEI and other		(18,947		)	(19,255		)	(21,599		)	(21,510		)	(18,202		)
Consolidated HEI		$	161,516		$	138,658		$	138,230		$	113,535		$	83,011

Diluted earnings per common share		1.62			1.42			$	1.44		$	1.21		$	0.91

Return on average common equity by company (simple average)
Electric utilities
	Hawaiian Electric	8.0		%	7.6		%	6.4		%	6.1		%	6.7		%
	Hawaii Electric Light	7.4			5.9			9.7			6.5			6.8
	Maui Electric	8.9			5.4			7.7			4.0			4.7
		8.0			6.9			7.3			5.8			6.4
ASB consolidated		11.3			11.9			12.2			11.9			4.5
Consolidated HEI		9.7		%	8.9		%	9.2		%	7.8		%	5.9		%

NON-GAAP (CORE) EARNINGS AND RETURN ON AVERAGE COMMON EQUITY¹

Hawaiian Electric Industries, Inc. and Subsidiaries

Unaudited



Years ended December 31		2013			2012			2011			2010			2009
(dollars in millions, except per share amounts)
Core net income (loss)
	Electric utility	$	122.9		$	123.7		$	105.7		$	76.6		$	79.4
	Bank	57.5			58.6			59.8			58.5			41.1
	Other	(18.9		)	(19.3		)	(21.6		)	(21.5		)	(18.2		)
Consolidated HEI		$	161.5		$	163.1		$	143.9		$	113.5		$	102.3

Core diluted earnings per common share		$	1.62		$	1.68		$	1.50		$	1.21		$	1.12

Adjusted return on average common equity (simple average)
	Electric utility	8.0		%	8.6		%	7.7		%	5.8		%	6.4		%
	Bank	11.3			11.9			12.2			11.9			8.5
	Consolidated HEI	9.7			10.4			9.6			7.8			7.2

Note: Columns may not foot due to rounding


¹	See the reconciliation of GAAP to non-GAAP measures in the Appendix.

SELECTED FINANCIAL INFORMATION

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited



Years ended December 31		2013			2012		2011		2010			2009
(in thousands)
CAPITAL STRUCTURE¹
Short-term borrowings		$	—		$	—	$	—	$	—		$	—
Long-term debt, net, including current portion		1,217,945			1,147,872		1,058,070		1,057,942			1,057,815
Preferred stock		34,293			34,293		34,293		34,293			34,293
Common stock equity²		1,593,564			1,472,136		1,402,841		1,334,155			1,303,165
		$	2,845,802		$	2,654,301	$	2,495,204	$	2,426,390		$	2,395,273
CAPITAL STRUCTURE RATIOS (%)¹
Short-term borrowings		—			—		—		—			—
Long-term debt, net, including current portion		42.8			43.2		42.4		43.6			44.2
Preferred stock		1.2			1.3		1.4		1.4			1.4
Common stock equity		56.0			55.5		56.2		55.0			54.4
		100.0			100.0		100.0		100.0			100.0
KEY FINANCIAL RATIOS (%)
Ratio of earnings to fixed charges (SEC method)		3.72			3.37		3.52		2.88			2.99
Authorized return on rate base³
	Hawaiian Electric	8.11			8.11		8.16		8.16			8.66
	Hawaii Electric Light	8.31			8.31		8.33		8.33			9.14
	Maui Electric	7.34			8.15		8.67		8.67			8.83
Earned rate-making return on simple average rate base ⁴
	Hawaiian Electric	7.24			8.23		6.83		5.93			6.12
	Hawaii Electric Light	6.77			6.99		8.78		5.86			5.70
	Maui Electric	7.25			5.99		7.07		4.86			4.99
Authorized return on simple average common equity³
	Hawaiian Electric	10.00			10.00		10.00		10.00		⁷	10.70
	Hawaii Electric Light	10.00			10.00		10.70		10.70			11.50
	Maui Electric	9.00			10.00		10.70		10.70			10.94
Earned rate-making return on simple average common equity⁵
	Hawaiian Electric	8.91			10.70		8.03		6.15			7.02
	Hawaii Electric Light	7.46			7.79		10.85		6.24			6.89
	Maui Electric	9.33			6.69		8.10		3.90			4.76
Book return on simple average common equity⁶
	Hawaiian Electric	7.98			7.57		6.43		6.08			6.74
	Hawaii Electric Light	7.41			5.90		9.68		6.51			6.84
	Maui Electric	8.91			5.44		7.73		4.00			4.69

RATE BASE (in millions, simple average)
Hawaiian Electric		$	1,668	⁸	$	1,532	$	1,401	$	1,406		$	1,276
Hawaii Electric Light		464		⁸	454		453		458			417
Maui Electric		421		⁸	400		385		382			386
		$	2,553		$	2,386	$	2,239	$	2,246		$	2,079
DEPRECIATION AND AFUDC (%)
Composite annual depreciation rate		3.1			3.1		3.2		3.5			3.8
Accumulated depreciation as percent of gross plant¹		35.8			36.7		37.5		38.4			37.9
Weighted-average AFUDC rate		7.6			7.6		8.0		8.1			8.1


1	At December 31


2	Certain reclassifications have been made to prior years' financial statements to conform to the 2012 presentation, which did not affect previously reported results of operations.


3	Reflects latest final decision and order as of the end of the respective years.


4	Based on recorded income and average rate base, both adjusted for items not included in determining electric rates.


5	Beginning in 2011, this calculation is based on recorded income and the average common equity capitalization of the average rate base, both adjusted for items not included in determining electric rates. Prior to 2011, it was based on average common equity on the balance sheet adjusted for items not included in determining electric rates.


6	Based on recorded net income divided by average common equity, simple average method.


7	Represents the authorized return from the 2009 test year final D&O effective March 1, 2011.


8	The 12/31/13 rate base amounts for Hawaiian Electric, Hawaii Electric Light and Maui Electric were $1,731, $473 and $435, respectively.

CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS INFORMATION

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited



Years ended December 31	2013			2012			2011			2010			2009
(in thousands)

Revenues	$	2,980,172		$	3,109,439		$	2,978,690		$	2,382,366		$	2,035,009
Expenses
Fuel oil	1,185,552			1,297,419			1,265,126			900,408			671,970
Purchased power	710,681			724,240			689,652			548,800			499,804
Other operation and maintenance	403,270			397,429			380,084			382,945			357,332
Depreciation	154,025			144,498			142,975			149,708			144,533
Taxes, other than income taxes	281,131			292,841			276,504			222,117			191,699
Impairment of utility assets	—			40,000			9,215			—			—
Total expenses	2,734,659			2,896,427			2,763,556			2,203,978			1,865,338
Operating income	245,513			213,012			215,134			178,388			169,671
Allowance for equity funds used during construction	5,561			7,007			5,964			6,016			12,222
Interest expense and other charges, net	(59,279		)	(62,055		)	(60,031		)	(61,510		)	(57,944		)
Allowance for borrowed funds used during construction	2,246			4,355			2,498			2,558			5,268
Income before income taxes	194,041			162,319			163,565			125,452			129,217
Income taxes	69,117			61,048			61,584			46,868			47,776
Net income	124,924			101,271			101,981			78,584			81,441
Preferred stock dividends of subsidiaries	915			915			915			915			915
Net income attributable to Hawaiian Electric	124,009			100,356			101,066			77,669			80,526
Preferred stock dividends of Hawaiian Electric	1,080			1,080			1,080			1,080			1,080
Net income for common stock	122,929			99,276			99,986			76,589			79,446
Retained earnings, January 1	907,273			881,041			851,613			823,793			799,347
Common stock dividends	(81,578		)	(73,044		)	(70,558		)	(48,769		)	(55,000		)
Retained earnings, December 31	$	948,624		$	907,273		$	881,041		$	851,613		$	823,793

Note: See Hawaiian Electric Company, Inc. and subsidiaries' Consolidated Financial Statements included or incorporated in HEI's and Hawaiian Electric Company, Inc. and subsidiaries' Form 10-K for each year.

CONSOLIDATED BALANCE SHEETS INFORMATION

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited



December 31	2013			2012			2011			2010			2009
(in thousands)
ASSETS
Utility plant, at cost
Land	$	51,883		$	51,568		$	51,514		$	51,364		$	52,530
Plant and equipment	5,701,875			5,364,400			5,052,027			4,896,974			4,696,257
Less accumulated depreciation	(2,111,229		)	(2,040,789		)	(1,966,894		)	(1,941,059		)	(1,848,416		)
Construction in progress	143,233			151,378			138,838			101,562			132,980
Net utility plant	3,785,762			3,526,557			3,275,485			3,108,841			3,033,351
Current assets
Cash and equivalents	62,825			17,159			48,806			122,936			73,578
Customer accounts receivable, net	175,448			210,779			183,328			138,171			133,286
Accrued unbilled revenues, net	144,124			134,298			137,826			104,384			84,276
Other accounts receivable, net	14,062			28,176			8,623			9,376			8,449
Fuel oil stock, at average cost	134,087			161,419			171,548			152,705			78,661
Materials and supplies, at average cost	59,044			51,085			43,188			36,717			35,908
Prepayments and other¹	52,857			32,865			36,667			57,281			18,266
Regulatory assets	69,738			51,267			20,283			7,349			6,849
Total current assets	712,185			687,048			650,269			628,919			439,273
Other long-term assets
Regulatory assets	506,186			813,329			649,106			470,981			420,013
Unamortized debt expense	9,003			10,554			12,786			14,030			14,288
Other	73,993			71,305			86,361			64,974			73,532
Total other long-term assets	589,182			895,188			748,253			549,985			507,833
Total assets	$	5,087,129		$	5,108,793		$	4,674,007		$	4,287,745		$	3,980,457
CAPITALIZATION AND LIABILITIES
Capitalization
Common stock equity¹	$	1,593,564		$	1,472,136		$	1,402,841		$	1,334,155		$	1,303,165
Cumulative preferred stock - not subject to mandatory redemption	34,293			34,293			34,293			34,293			34,293
Long-term debt, net	1,206,545			1,147,872			1,000,570			1,057,942			1,057,815
Total capitalization	2,834,402			2,654,301			2,437,704			2,426,390			2,395,273
Current liabilities
Current portion of long-term debt	11,400			—			57,500			—			—
Accounts payable	189,559			186,824			188,580			178,959			132,711
Interest and preferred dividends payable	21,652			21,092			19,483			20,603			21,223
Taxes accrued¹	249,445			251,066			230,076			181,268			161,400
Regulatory liabilities¹	1,916			1,212			—			—			—
Other	63,881			60,801			69,353			56,354			48,192
Total current liabilities	537,853			520,995			564,992			437,184			363,526
Deferred credits and other liabilities
Deferred income taxes	507,161			417,611			337,863			269,286			180,603
Regulatory liabilities	347,383			322,940			315,466			296,797			288,214
Unamortized tax credits	73,539			66,584			60,614			58,810			56,870
Defined benefit pension and other postretirement benefit plans liability	262,162			620,205			494,753			355,844			296,623
Other	91,735			100,637			106,412			108,070			77,804
Total deferred credits and other liabilities	1,281,980			1,527,977			1,315,108			1,088,807			900,114
Contributions in aid of construction	432,894			405,520			356,203			335,364			321,544
Total capitalization and liabilities	$	5,087,129		$	5,108,793		$	4,674,007		$	4,287,745		$	3,980,457


¹	Certain reclassifications have been made to prior years' financial statements to conform to the 2012 presentation, which did not affect previously reported results of operations.

CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited



Years ended December 31					2013			2012			2011			2010			2009
(in thousands)
Cash flows from operating activities
Net income					$	124,924		$	101,271		$	101,981		$	78,584		$	81,441
Adjustments to reconcile net income to
	net cash provided by operating activities
		Depreciation of property, plant and equipment			154,025			144,498			142,975			149,708			144,533
		Other amortization			5,077			6,998			17,378			7,725			10,045
		Impairment of utility assets			—			40,000			9,215			—			—
		Increase in deferred income taxes			64,507			86,878			69,091			95,685			14,762
		Changes in tax credits, net			7,017			6,075			2,087			2,841			(1,332		)
		Allowance for equity funds used
			during construction		(5,561		)	(7,007		)	(5,964		)	(6,016		)	(12,222		)
		Change in cash overdraft			1,038			—			(2,688		)	(141		)	—
		Changes in assets and liabilities
			Decrease (increase) in accounts receivable		49,445			(47,004		)	(44,404		)	(5,812		)	32,605
			Decrease (increase) in accrued unbilled revenues		(9,826		)	3,528			(33,442		)	(20,108		)	22,268
			Decrease (increase) in fuel oil stock		27,332			10,129			(18,843		)	(74,044		)	(946		)
			Increase in materials and supplies		(7,959		)	(7,897		)	(6,471		)	(809		)	(1,376		)
			Increase in regulatory assets		(65,461		)	(72,401		)	(40,132		)	(2,936		)	(17,597		)
			Increase (decrease) in accounts payable¹		(20,828		)	(38,913		)	(35,815		)	25,392			(6,165		)
			Changes in prepaid and accrued income taxes
				and revenue taxes	(2,028		)	25,239			69,736			(10,170		)	(61,951		)
			Change in other assets and liabilities		(29,259		)	(74,163		)	(63,310		)	7,890			(2,571		)
Net cash provided by operating activities					292,443			177,231			161,394			247,789			201,494
Cash flows from investing activities
Capital expenditures ¹					(342,485		)	(310,091		)	(226,022		)	(174,344		)	(286,445		)
Contributions in aid of construction					32,160			45,982			23,534			22,555			14,170
Other					(230		)	—			77			1,327			340
Net cash used in investing activities					(310,555		)	(264,109		)	(202,411		)	(150,462		)	(271,935		)
Cash flows from financing activities
Net decrease in short-term borrowings from nonaffiliates and affiliate with original maturities of three months or less					—			—			—			—			(10,464		)
Proceeds from issuance of long-term debt					236,000			457,000			—			—			153,186
Repayment of long-term debt					(166,000		)	(368,500		)	—			—			—
Proceeds from issuance of common stock					78,500			44,000			40,000			4,250			61,914
Preferred stock dividends of Hawaiian Electric and subsidiaries					(1,995		)	(1,995		)	(1,995		)	(1,995		)	(1,995		)
Common stock dividends					(81,578		)	(73,044		)	(70,558		)	(48,769		)	(55,000		)
Other					(1,149		)	(2,230		)	(560		)	(1,455		)	(10,523		)
Net cash provided by (used in) financing activities					63,778			55,231			(33,113		)	(47,969		)	137,118
Net increase (decrease) in cash and cash equivalents					45,666			(31,647		)	(74,130		)	49,358			66,677
Cash and cash equivalents, January 1					17,159			48,806			122,936			73,578			6,901
Cash and cash equivalents, December 31					$	62,825		$	17,159		$	48,806		$	122,936		$	73,578


¹	The amounts for "Increase (decrease) in accounts payable" and "Capital expenditures" for years 2010 and 2009 were revised to conform to the 2011 presentation.

CUMULATIVE PREFERRED STOCK NOT SUBJECT TO MANDATORY REDEMPTION

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited



December 31						2013		2012		2011		2010		2009
(dollars in thousands, except par values)
					Shares
		Par			outstanding
		value			12/31/2013
C	4.25%	$	20	Hawaiian Electric	150,000	$	3,000	$	3,000	$	3,000	$	3,000	$	3,000
D	5.00	20		Hawaiian Electric	50,000	1,000		1,000		1,000		1,000		1,000
E	5.00	20		Hawaiian Electric	150,000	3,000		3,000		3,000		3,000		3,000
H	5.25	20		Hawaiian Electric	250,000	5,000		5,000		5,000		5,000		5,000
I	5.00	20		Hawaiian Electric	89,657	1,793		1,793		1,793		1,793		1,793
J	4.75	20		Hawaiian Electric	250,000	5,000		5,000		5,000		5,000		5,000
K	4.65	20		Hawaiian Electric	175,000	3,500		3,500		3,500		3,500		3,500
G	7.625	100		Hawaii Electric Light	70,000	7,000		7,000		7,000		7,000		7,000
H	7.625	100		Maui Electric	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

LONG-TERM DEBT

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited



December 31	2013		2012		2011		2010		2009
(in thousands)

OBLIGATIONS TO THE STATE OF HAWAII FOR THE
REPAYMENT OF SPECIAL PURPOSE REVENUE BONDS
Hawaiian Electric
Series 1993, 5.45%, due 2023	$	—	$	—	$	50,000	$	50,000	$	50,000
Series 1997A, 5.65%, due 2027	—		50,000		50,000		50,000		50,000
Refunding series 1998A, 4.95%, due 2012	—		—		42,580		42,580		42,580
Refunding series 1999B, 5.75%, due 2018	—		—		30,000		30,000		30,000
Series 1999C, 6.20%, due 2029	—		—		35,000		35,000		35,000
Refunding series 1999D, 6.15%, due 2020	—		—		16,000		16,000		16,000
Refunding series 2000, 5.70%, due 2020	—		—		46,000		46,000		46,000
Series 2002A, 5.10%, due 2032	—		—		40,000		40,000		40,000
Refunding series 2003B, 5.00%, due 2022	—		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		100,000		100,000
Refunding series 2007B, 4.60%, due 2026	62,000		62,000		62,000		62,000		62,000
Series 2009, 6.50%, due 2039	90,000		90,000		90,000		90,000		90,000
	292,000		382,000		641,580		641,580		641,580

Hawaii Electric Light
Series 1993, 5.45%, due 2023	—		—		20,000		20,000		20,000
Series 1997A, 5.65%, due 2027	—		30,000		30,000		30,000		30,000
Refunding series 1998A, 4.95%, due 2012	—		—		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
Refunding series 1999D, 6.15%, due 2020	—		—		3,000		3,000		3,000
Refunding series 2003A, 4.75%, due 2020	—		14,000		14,000		14,000		14,000
Refunding series 2003B, 5.00%, due 2022	—		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		20,000		20,000
Refunding series 2007B, 4.60%, due 2026	8,000		8,000		8,000		8,000		8,000
Series 2009, 6.50%, due 2039	60,000		60,000		60,000		60,000		60,000
	$	104,400	$	160,400	$	201,600	$	201,600	$	201,600

(Continued on next page)

LONG-TERM DEBT (Continued)

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited



December 31	2013			2012			2011			2010			2009
(in thousands)
OBLIGATIONS TO THE STATE OF HAWAII FOR THE
REPAYMENT OF SPECIAL PURPOSE REVENUE BONDS
Maui Electric
Series 1993, 5.45%, due 2023	$	—		$	—		$	30,000		$	30,000		$	30,000
Series 1997A, 5.65%, due 2027	—			20,000			20,000			20,000			20,000
Refunding series 1998A, 4.95%, due 2012	—			—			7,720			7,720			7,720
Refunding series 1999B, 5.75%, due 2018	—			—			9,000			9,000			9,000
Refunding series 1999D, 6.15%, due 2020	—			—			1,000			1,000			1,000
Refunding series 2000, 5.70%, due 2020	—			—			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			20,000			20,000
Refunding series 2007B, 4.60%, due 2026	55,000			55,000			55,000			55,000			55,000
	77,000			97,000			164,720			164,720			164,720
	473,400			639,400			1,007,900			1,007,900			1,007,900
Less funds on deposit with trustees	—			—			—			—			—
	473,400			639,400			1,007,900			1,007,900			1,007,900
OTHER LONG-TERM DEBT (UNSECURED)
Taxable unsecured senior notes:
Hawaii Electric Light, 3.83%, Series 2013A, due 2020	14,000			—			—			—			—
Hawaiian Electric, 4.45%, Series 2013A, due 2022	40,000			—			—			—			—
Hawaii Electric Light, 4.45%, Series 2013B, due 2022	12,000			—			—			—			—
Hawaiian Electric, 4.84%, Series 2013B, due 2027	50,000			—			—			—			—
Hawaii Electric Light, 4.84%, Series 2013C, due 2027	30,000			—			—			—			—
Maui Electric, 4.84%, Series 2013A, due 2027	20,000			—			—			—			—
Hawaiian Electric, 5.65%m Series 2013C, due 2043	50,000			—			—			—			—
Maui Electric, 5.65%m Series 2013B, due 2043	20,000			—			—			—			—
Hawaiian Electric, 3.79%, Series 2012A, due 2018	30,000			30,000			—			—			—
Hawaii Electric Light, 3.79%, Series 2012A, due 2018	11,000			11,000			—			—			—
Maui Electric, 3.79%, Series 2012A, due 2018	9,000			9,000			—			—			—
Hawaiian Electric, 4.03%, Series 2012B, due 2020	62,000			62,000			—			—			—
Maui Electric, 4.03%, Series 2012B, due 2020	20,000			20,000			—			—			—
Hawaiian Electric, 4.55%, Series 2012C, due 2023	50,000			50,000			—			—			—
Hawaii Electric Light, 4.55%, Series 2012B, due 2023	20,000			20,000			—			—			—
Maui Electric, 4.55%, Series 2012C, due 2023	30,000			30,000			—			—			—
Hawaiian Electric, 4.72%, Series 2012D, due 2029	35,000			35,000			—			—			—
Hawaiian Electric, 5.39%, Series 2012E, due 2042	150,000			150,000			—			—			—
Hawaiian Electric, 4.53%, Series 2012F, due 2032	40,000			40,000			—			—			—
	693,000			457,000			—			—			—
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	1,217,946			1,147,946			1,059,446			1,059,446			1,059,446
Less unamortized discount	(1		)	(74		)	(1,376		)	(1,504		)	(1,631		)
Less current portion of long-term debt	(11,400		)	—			(57,500		)	—			—
Long-term debt, net	$	1,206,545		$	1,147,872		$	1,000,570		$	1,057,942		$	1,057,815

CUSTOMER, SALES AND REVENUE INFORMATION

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited



Years ended December 31	2013		2012		2011		2010		2009
SERVICE AREA
Service area (square miles)	5,815		5,815		5,766		5,766		5,766
Service area population (estimated, in thousands)	n/a		1,324		1,310		1,297		1,280
CUSTOMER ACCOUNTS¹
Residential	394,910		392,025		390,133		388,307		385,886
Commercial	54,616		54,005		53,904		54,374		54,527
Large light and power	556		577		567		548		558
Other	1,660		1,636		1,625		1,627		1,613
	451,742		448,243		446,229		444,856		442,584
CUSTOMER ACCOUNTS BY COMPANY¹
Hawaiian Electric	299,528		297,529		296,800		296,422		295,282
Hawaii Electric Light	82,637		81,792		81,199		80,695		79,813
Maui Electric	69,577		68,922		68,230		67,739		67,489
Consolidated	451,742		448,243		446,229		444,856		442,584
KILOWATTHOUR SALES (millions)
Residential	2,451		2,582		2,770		2,830		2,893
Commercial	3,106		3,074		3,204		3,185		3,222
Large light and power	3,463		3,500		3,503		3,513		3,525
Other	50		50		50		51		50
	9,070		9,206		9,527		9,579		9,690
KILOWATTHOUR SALES MIX (%)
Residential	27.0		28.1		29.1		29.5		29.9
Commercial	34.3		33.4		33.6		33.3		33.2
Large light and power	38.2		38.0		36.8		36.7		36.4
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)
Hawaiian Electric	6,859		6,976		7,242		7,277		7,378
Hawaii Electric Light	1,076		1,085		1,104		1,110		1,120
Maui Electric	1,135		1,145		1,181		1,192		1,192
Consolidated	9,070		9,206		9,527		9,579		9,690
KILOWATTHOUR SALES GROWTH BY COMPANY (%)
Hawaiian Electric	(1.7	)	(3.7	)	(0.5	)	(1.4	)	(2.4	)
Hawaii Electric Light	(0.8	)	(1.7	)	(0.5	)	(0.9	)	(1.8	)
Maui Electric	(0.9	)	(3.1	)	(0.9	)	(0.1	)	(3.8	)
Consolidated	(1.5	)	(3.4	)	(0.5	)	(1.1	)	(2.5	)
RENEWABLE GENERATION RPS (%)²
Hawaiian Electric	11		8		7		5		5
Hawaii Electric Light	48		47		41		35		34
Maui Electric	29		21		17		15		14
Consolidated	18		14		12		10		10


¹	At December 31


²	Renewable generation as a % of total sales, excluding electrical energy savings from Energy Efficiency and Solar Water Heating technologies that will not count toward RPS Standards beginning January 1, 2015


n/a	Not available

(Continued on next page)

CUSTOMER, SALES AND REVENUE INFORMATION (Continued)

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited



Years ended December 31		2013			2012			2011			2010			2009
REVENUES (thousands)
Electric sales revenue
	Residential	$	892,438		$	952,159		$	946,653		$	781,467		$	690,656
	Commercial	1,044,166			1,060,983			1,024,725			814,109			694,087
	Large light and power	1,015,079			1,062,226			976,949			752,056			623,159
	Other	17,008			17,392			16,172			13,004			10,721
Total electric sales revenues		2,968,691			3,092,760			2,964,499			2,360,636			2,018,623
Other revenues		11,481			16,679			14,191			21,730			16,386
Total revenues		$	2,980,172		$	3,109,439		$	2,978,690		2,382,366			$	2,035,009
Less:
	Fuel oil	1,185,552			1,297,419			1,265,126			900,408			671,970
	Purchased power	710,681			724,240			689,652			548,800			499,804
	Taxes, other than income taxes	281,131			292,841			276,504			222,117			191,699
Net revenues		$	802,808		$	794,939		$	747,408		$	711,041		$	671,536
REVENUES BY COMPANY (thousands)
Hawaiian Electric		$	2,124,174		$	2,228,233		$	2,114,066		$	1,660,741		$	1,392,127
Hawaii Electric Light		431,517			441,013			444,891			375,078			345,103
Maui Electric		424,603			440,270			419,760			346,625			298,199
Eliminations		(122		)	(77		)	(27		)	(78		)	(420		)
Consolidated		$	2,980,172		$	3,109,439		$	2,978,690		$	2,382,366		$	2,035,009
AVERAGE REVENUE PER KWH SOLD (cents)
Residential		36.41			36.88			34.18			27.61			23.87
Commercial		33.62			34.51			31.99			25.56			21.54
Large light and power		29.31			30.35			27.89			21.41			17.68
Other		34.02			34.93			32.37			25.63			21.36
		32.73			33.60			31.12			24.65			20.83
AVERAGE REVENUE PER KWH SOLD BY COMPANY (cents)
Hawaiian Electric		30.86			31.78			29.05			22.61			18.70
Hawaii Electric Light		39.98			40.48			40.16			33.50			30.63
Maui Electric		37.20			38.16			35.35			28.83			24.86
Consolidated		32.73			33.60			31.12			24.65			20.83
AVERAGE ANNUAL RESIDENTIAL USE PER CUSTOMER BY COMPANY (KWH)
Hawaiian Electric		6,283			6,729			7,319			7,540			7,759
Hawaii Electric Light		5,697			5,958			6,271			6,405			6,613
Maui Electric		6,554			6,745			7,195			7,368			7,503
Consolidated		6,220			6,596			7,117			7,317			7,523
Average monthly electric sales revenue per residential customer		$	189		$	203		$	203		$	168		$	150

POWER SUPPLY INFORMATION

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited



Years ended December 31		2013	2012	2011	2010	2009
ENERGY NET GENERATED AND PURCHASED (millions of KWH)
Net generated
Fuel oil
	Steam-conventional	4,243	4,508	4,798	4,884	4,972
	Combustion turbine¹	13	26	24	29	98
	Diesel	179	204	238	242	295
	Combined-cycle	864	807	883	878	723
		5,299	5,545	5,943	6,033	6,088
Biofuels		34	28	59	3	—
Hydro and wind		19	29	20	17	29
Total net generated		5,352	5,602	6,022	6,053	6,117
Purchased
Non-renewable		2,951	3,052	3,038	3,222	3,298
Renewable		1,244	1,041	972	841	822
Total purchased		4,195	4,093	4,010	4,063	4,120
		9,547	9,695	10,032	10,116	10,237
GENERATION MIX (%)
Fuel oil
Steam-conventional		44.4	46.5	47.8	48.3	48.6
Combustion turbine¹		0.1	0.3	0.2	0.3	0.9
Diesel		1.9	2.1	2.4	2.4	2.9
Combined-cycle		9.1	8.3	8.8	8.7	7.1
		55.5	57.2	59.2	59.7	59.5
Biofuels		0.4	0.3	0.6	—	—
Hydro and wind		0.2	0.3	0.2	0.1	0.3
Total generation		56.1	57.8	60.0	59.8	59.8
Purchased
Non-renewable		30.9	31.5	30.3	31.9	32.2
Renewable ²		13.0	10.7	9.7	8.3	8.0
Total purchased		43.9	42.2	40.0	40.2	40.2
		100.0	100.0	100.0	100.0	100.0


¹	2009 includes Campbell Industrial Park (CIP) Combustion Turbine No. 1 (CT-1) biodiesel


²	Includes firm and non-firm renewable generation; does not include generation associated with Net Energy Metering (NEM) customers

(Continued on next page)

POWER SUPPLY INFORMATION (Continued)

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited



Years ended December 31		2013		2012		2011		2010		2009
SYSTEM CAPABILITY (MW) ^{1, 2}
Company-owned generation
Steam-conventional		1,207		1,207		1,207		1,205		1,205
Combustion turbine³		150		150		150		150		263
Diesel		147		147		147		147		177
Biodiesel (CIP CT-1)		113		113		113		113		—
Combined-cycle		170		170		170		170		170
		1,787		1,787		1,787		1,785		1,815
Firm purchase power contracts
Non-renewable		448		448		448		448		448
Renewable ⁴		119		97		92		92		84
		567		545		540		540		532
		2,354		2,332		2,327		2,325		2,347
SYSTEM CAPABILITY BY COMPANY (MW) ^{1, 2}
Hawaiian Electric		1,778		1,756		1,756		1,756		1,785
Hawaii Electric Light		292		292		287		285		278
Maui Electric		284		284		284		284		284
		2,354		2,332		2,327		2,325		2,347
SYSTEM PEAK LOAD BY COMPANY (MW) ⁵
Hawaiian Electric		1,144		1,141		1,141		1,162		1,213
Hawaii Electric Light		190		189		189		190		195
Maui Electric		201		205		200		210		210
		1,535		1,535		1,530		1,562		1,618
FUEL OIL DATA
Barrels of fuel oil consumed (thousands)		9,043		9,395		10,032		10,276		10,514
Average fuel oil cost per barrel		$	131.10	$	138.09	$	123.63	$	87.62	$	63.91
Average fuel oil cost per million BTU (cents)		2,103.2		2,210.4		1,986.7		1,404.8		1,026.4
Fuel oil cost per net KWH generated (cents)		22.230		23.281		21.078		14.915		11.036
BTU per net KWH generated by company
	Hawaiian Electric	10,536		10,448		10,583		10,545		10,590
	Hawaii Electric Light	11,658		12,025		11,766		11,939		13,085
	Maui Electric	10,088		10,193		10,135		10,254		10,323
	Consolidated	10,570		10,533		10,609		10,617		10,753
OTHER DATA
Losses and system uses (%)		4.8		4.8		4.8		5.1		5.1
Reserve margin (%) ⁵		57.2		56.0		56.1		52.6		50.0
Annual load factor (%) ⁵		71.0		72.1		74.8		73.9		72.2
Cost per KWH purchased (cents)		16.940		17.694		17.199		13.508		12.132


¹	At December 31


²	Excludes hydro run-of-river units


³	2009 includes CIP CT-1 biodiesel


⁴	Includes Honolulu Program of Waste Energy Recovery (H-POWER), refuse-fired; Hawaiian Commercial & Sugar (HC&S), primarily bagasse-fired; and Puna Geothermal Venture (PGV), geothermal

Excludes intermittent (non-firm) renewable purchased power contracts representing ~235MW in 2013


⁵	Net; noncoincident and nonintegrated

SELECTED INFORMATION

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

Unaudited



Years ended December 31		2013		2012	2011		2010		2009


REGULATORY CAPITAL (%)
Tangible capital
	ASB	9.12		9.15	9.04		9.21		8.99
	Requirement	1.50		1.50	1.50		1.50		1.50
Core (leverage) capital
	ASB	9.12		9.15	9.04		9.21		8.99
	Requirement	4.00		4.00	4.00		4.00		4.00
Risk-based capital
	ASB	12.13		12.77	12.92		13.85		14.06
	Requirement	8.00		8.00	8.00		8.00		8.00
KEY STATISTICS (%)
Return on assets¹
	ASB	1.13		1.18	1.23		1.20		0.43
	Peers²	0.98		0.94	0.91		0.52		0.16
	High performing peers²	1.24		1.15	1.16		1.09		0.85
Net interest margin
	ASB	3.74		3.93	4.12		4.23		4.19
	Peers²	3.65		3.72	3.83		3.62		3.43
	High performing peers²	4.01		4.02	4.08		4.21		3.89
Revenue growth
	ASB	(2.43	)	1.72	(4.73	)	13.48		(8.67	)
	Peers²	2.91		3.90	1.71		4.60		12.19
	High performing peers²	0.46		2.39	4.46		4.32		14.43
Net charge-offs to loans outstanding
	ASB	0.09		0.24	0.49		0.61		0.66
	Peers²	0.25		0.53	0.75		1.34		1.18
	High performing peers²	0.14		0.30	0.42		0.76		0.70
OTHER DATA
Dividend paid to HEI (via ASHI) ($ in millions)³		40		45	63		62		50
Loan Growth (%)		9.71		2.61	4.19		(4.34	)	(12.37	)
Branch locations⁴		57		57	57		57		60


¹	2009 net income included $19 million after tax charge related to the sale of private-issue mortgage-related securities.


²	Based upon publicly traded banks and thrifts with $3.5 billion to $8.0 billion in total assets.

High performing peers are a subset of the bank peer group generally based upon performance metrics, such as return on average assets, above the average of the entire peer group.


³	2011 includes noncash dividends of $5 million


⁴	At December 31

CONSOLIDATED STATEMENTS OF INCOME INFORMATION

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

Unaudited



Years ended December 31	2013		2012		2011		2010		2009
(in thousands)
Interest and dividend income
Interest and fees on loans	$	172,969	$	176,057	$	184,485	$	195,192	$	217,838
Interest and dividends on investment and mortgage-related securities	13,095		13,822		14,568		14,946		26,977
Total interest and dividend income	186,064		189,879		199,053		210,138		244,815
Interest expense
Interest on deposit liabilities	5,092		6,423		8,983		14,696		34,046
Interest on other borrowings	4,985		4,869		5,486		5,653		9,497
Total interest expense	10,077		11,292		14,469		20,349		43,543
Net interest income	175,987		178,587		184,584		189,789		201,272
Provision for loan losses	1,507		12,883		15,009		20,894		32,000
Net interest income after provision for loan losses	174,480		165,704		169,575		168,895		169,272
Noninterest income
Fees from other financial services	27,099		31,361		28,881		27,280		25,267
Fee income on deposit liabilities	18,363		17,775		18,026		26,369		30,713
Fee income on other financial products	8,405		6,577		6,704		6,487		5,833
Net gains (losses) on sale of securities	1,226		134		371		—		(32,034		)
Net losses on available-for-sale securities	—		—		—		—		(15,444		)
Mortgage banking income	8,309		14,628		5,028		6,236		5,412
Other income, net	8,681		5,185		6,344		6,183		10,157
Total noninterest income	72,083		75,660		65,354		72,555		29,904
Noninterest expense
Compensation and employee benefits	82,910		75,979		71,137		71,476		73,990
Occupancy and equipment	24,042		24,284		24,057		23,168		30,906
Data processing	10,952		10,098		8,155		13,213		14,382
Services	9,015		9,866		7,396		6,594		11,189
Loss on early extinguishment of debt	—		—		—		—		760
Other expense	32,585		32,116		32,648		34,487		36,244
Total noninterest expense	159,504		152,343		143,393		148,938		167,471
Income before income taxes	87,059		89,021		91,536		92,512		31,705
Income taxes	29,525		30,384		31,693		34,056		9,938
Net income for common stock	$	57,534	$	58,637	$	59,843	$	58,456	$	21,767		¹


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

Note: See Note 4 of HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.

CONSOLIDATED BALANCE SHEETS INFORMATION

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

Unaudited



December 31	2013			2012			2011			2010			2009
(in thousands)
ASSETS
Cash and equivalents	$	156,603		$	184,430		$	219,678		$	206,118		$	427,375
Available-for-sale investment and mortgage-related securities	529,007			671,358			624,331			678,152			432,881
Investment in stock of Federal Home Loan Bank of Seattle	92,546			96,022			97,764			97,764			97,764
Loans receivable, net	4,115,415			3,763,238			3,652,419			3,497,729			3,670,493
Real estate acquired in settlement of loans, net	1,205			6,050			7,260			4,292			3,959
Other and other intangibles, net	266,858			238,385			226,332			230,514			226,323
Goodwill	82,190			82,190			82,190			82,190			82,190
Total assets	$	5,243,824		$	5,041,673		$	4,909,974		$	4,796,759		$	4,940,985

LIABILITIES AND SHAREHOLDER'S EQUITY
Deposit liabilities	$	4,372,477		$	4,229,916		$	4,070,032		$	3,975,372		$	4,058,760
Other borrowings	244,514			195,926			233,229			237,319			297,628
Other	105,679			117,752			118,078			90,683			92,129
Total liabilities	4,722,670			4,543,594			4,421,339			4,303,374			4,448,517

Common stock	336,054			333,712			331,880			330,562			329,439
Retained earnings	197,297			179,763			166,126			169,111			172,655
Accumulated other comprehensive loss, net of tax benefits	(12,197		)	(15,396		)	(9,371		)	(6,288		)	(9,626		)
Total shareholder's equity	521,154			498,079			488,635			493,385			492,468
Total liabilities and shareholder's equity	$	5,243,824		$	5,041,673		$	4,909,974		$	4,796,759		$	4,940,985

Note: See Note 4 of HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.

STATE OF HAWAII INFORMATION

Unaudited



Years ended December 31, except as noted	2013			2012		2011		2010		2009

POPULATION BY COUNTY (thousands)¹
Honolulu	n/a			976		966		953		943
Hawaii	n/a			189		187		185		184
Maui	n/a			158		157		155		153
Kauai	n/a			68		68		67		67
	1,404		e	1,390		1,378		1,360		1,347

VISITOR DATA
Visitor arrivals by air (thousands)	8,064			7,867		7,174		6,917		6,420
Visitor days by air (thousands)	74,504			73,664		67,826		64,951		60,255
Visitor expenditures by air (billions)	$	14.5		$	14.2	$	12.0	$	10.9	$	9.8

Year-over-year change (%)
Visitor arrivals by air	2.5			9.2		3.7		7.7		(4.4		)
Visitor days	1.1			8.9		4.4		7.8		(4.6		)
Visitor expenditures by air	2.1			18.6		11.0		10.9		(12.4		)

CONSTRUCTION INDUSTRY DATA (millions)
Value of private building permits authorized²	$	2,721		$	2,644	$	1,859	$	1,980	$	1,999
Government contracts awarded	n/a			$	773	$	431	$	1,058	$	779
Estimated value of completed construction	n/a			$	7,006	$	5,837	$	5,590	$	6,642

FEDERAL GOVERNMENT DATA (millions)
Department of Defense expenditures	n/a			n/a		n/a		$	9,995	$	8,319
Other federal agencies expenditures	n/a			n/a		n/a		$	10,860	$	10,666
Total federal government expenditures	n/a			n/a		n/a		$	20,855	$	18,985

OTHER DATA
Real gross state product (billions of 2005 $s)	$	63.4		$	61.9	$	60.9	$	59.7	$	57.9
Honolulu Consumer Price Index (% change)	1.8			2.4		3.7		2.1		0.5
Total non-agriculture wage and salary jobs (thousands)³	613.3			605.3		594.0		586.9		591.5
Unemployment rate (average annual %)	4.7			5.8		6.5		6.9		6.9

Note: Columns may not foot due to rounding

Sources: State of Hawaii Data Book 2011 (prior years), Hawaii State Department of Business, Economic Development & Tourism, Hawaii Tourism Authority, United States Department of Labor, Bureau of Labor Statistics, and U.S. Census Bureau


¹	Resident population estimates, including military personnel, excluding visitors, as of July 1 except for 2010 data which is based on the April 1 decennial census figure


²	Excludes public construction


³	Not seasonally adjusted and excludes estimations for Agriculture jobs (per Hawaii Department of Labor and Industrial Relations)


e	Estimate


n/a	Not available

Appendix

EXPLANATION OF HEI’S USE OF CERTAIN UNAUDITED NON-GAAP MEASURES

HEI, Hawaiian Electric Company and American Savings Bank (ASB) management use certain non-GAAP measures to evaluate the performance of the utility and bank. Management believes these non-GAAP measures provide useful information and are a better indicator of the utility’s and bank’s core operating activities. Core earnings as presented here may not be comparable to similarly titled measures used by other companies. The accompanying table provides a reconciliation of reported GAAP¹ earnings to non-GAAP core earnings for the utility, bank and HEI consolidated and the corresponding adjusted return on average common equity (ROACE).

The reconciling adjustments from GAAP earnings to core earnings for the utility are limited to the partial write-off of utility assets in 2012 and 2011 based upon settlement agreements between Hawaiian Electric Company and the Hawaii Consumer Advocate which were subsequently approved by the Hawaii Public Utilities Commission.

The reconciling adjustment from GAAP earnings to core earnings for the bank is limited to the 2009 loss on the liquidation of the private-issue mortgage-related securities portfolio.

Management does not consider these items to be representative of the company’s fundamental core earnings.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

Hawaiian Electric Industries, Inc. and Subsidiaries (HEI)

Unaudited

($ in millions, except per share amounts)



Years ended December 31	2013			2012			2011			2010			2009
HEI CONSOLIDATED NET INCOME
GAAP (as reported)	$	161.5		$	138.7		$	138.2		$	113.5		$	83.0
Excluding special items (after-tax):
Partial writedown of certain utility assets based on settlement agreements	—			24.4			5.7			—			—
Charges related to ASB's private-issue mortgage-related securities	—			—			—			—			19.3
Non-GAAP (core)	$	161.5		$	163.1		$	143.9		$	113.5		$	102.3
HEI CONSOLIDATED DILUTED EARNINGS PER SHARE
GAAP (as reported)	$	1.62		$	1.42		$	1.44		$	1.21		$	0.91
Non-GAAP (core)	$	1.62		$	1.68		$	1.50		$	1.21		$	1.12
HEI CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average)
Based on GAAP	9.7		%	8.9		%	9.2		%	7.8		%	5.9		%
Based on non-GAAP (core)²	9.7		%	10.4		%	9.6		%	7.8		%	7.2		%
Hawaiian Electric Company, Inc. and Subsidiaries										`
UTILITY NET INCOME
GAAP (as reported)	$	122.9		$	99.3		$	100.0		$	76.6		$	79.4
Excluding special items (after-tax):
Partial writedown of certain utility assets based on settlement agreements	—			24.4			5.7			—			—
Non-GAAP (core)	$	122.9		$	123.7		$	105.7		$	76.6		$	79.4
UTILITY RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average)
Based on GAAP	8.0		%	6.9		%	7.3		%	5.8		%	6.4		%
Based on non-GAAP (core)²	8.0		%	8.6		%	7.7		%	5.8		%	6.4		%
American Savings Bank, F.S.B.
BANK NET INCOME
GAAP (as reported)	$	57.5		$	58.6		$	59.8		$	58.5		$	21.8
Excluding special items (after-tax):
Loss on the liquidation of the private-issue mortgage-related securities	—			—			—			—			19.3
Non-GAAP (core)	$	57.5		$	58.6		$	59.8		$	58.5		$	41.1
BANK RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average)
Based on GAAP	11.3		%	11.9		%	12.2		%	11.9		%	4.5		%
Based on non-GAAP (core)²	11.3		%	11.9		%	12.2		%	11.9		%	8.5		%

¹Accounting principles generally accepted in the United States of America

²Calculated as core net income divided by average GAAP common equity

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