Significant group concentrations of credit risk - HECO

12 Months Ended

Dec. 31, 2012

Significant group concentrations of credit risk

14 ·Significant group concentrations of credit risk

Most of the Company’s business activity is with customers located in the State of Hawaii. Most of ASB’s financial instruments are based in the State of Hawaii, except for the investment and mortgage-related securities it owns. Substantially all real estate loans receivable are collateralized by real estate in Hawaii. ASB’s policy is to require mortgage insurance on all real estate loans with a loan to appraisal ratio in excess of 80% at origination.

Hawaiian Electric Company, Inc. and Subsidiaries

Significant group concentrations of credit risk

14.  Significant group concentrations of credit risk

HECO and its utility subsidiaries are regulated operating electric public utilities engaged in the generation, purchase, transmission, distribution and sale of electricity on the islands of Oahu, Hawaii, Maui, Lanai and Molokai in the State of Hawaii.  HECO and its utility subsidiaries provide the only electric public utility service on the islands they serve.  HECO and its utility subsidiaries grant credit to customers, all of whom reside or conduct business in the State of Hawaii.