Hawaiian Electric Industries Inc. posted flat fourth-quarter earnings after taking a $19.3 million after-tax loss for liquidating its private-issue mortgage-related securities portfolio.

The state's largest utility provider said yesterday it had net income of $13.7 million, or 15 cents a share, in the period ended Dec. 31 versus $13.9 million, or 16 cents a share, a year earlier.

Excluding the securities portfolio loss, HEI would have had earnings of $33 million, or 36 cents a share.

The company said its financial results reflected a full quarter of utility rate relief and aggressive cost-control efforts at both the utility and the bank.

“;2009 was a challenging year, and we made difficult decisions to curb spending and reduce risk while continuing to progress forward with long-term strategic initiatives to move Hawaii toward a clean energy future and improved performance and profitability at both our utility and bank,”; HEI President and Chief Executive Officer Connie Lau said.

Revenue fell 22.5 percent to $619.6 million from $799.8 million.

The company's utility income jumped 66.2 percent to $23.3 million from $14 million last quarter on the strength of the interim rate relief and short-term cost-control efforts. In the third quarter the state Public Utilities Commission approved a partial interim increase of $61.1 million, which contributed an additional $8.6 million in net income in the fourth quarter.

HEI's American Savings Bank subsidiary lost $4.5 million in the fourth quarter versus net income of $5.9 million a year ago due to the loss of $19.3 million related to the liquidation of the securities portfolio.

The bank's net interest income, reflecting the difference between what it pays depositors and what it brings in from loans, slipped to $49.4 million from $51.5 million a year ago. Noninterest income, which includes fees and service charges, came to a loss of $11.3 million compared with a net of $10.1 million a year ago.

Noninterest income was reduced by $32.1 million for the securities portfolio losses. American Savings set aside $5 million for potential loan losses compared with $6.3 million a year ago.

For the year, HEI's net income declined 8 percent to $83 million, or 91 cents a share, compared with $90.3 million, or $1.07 a share. Revenue fell 28.2 percent to $2.3 billion from $3.2 billion.

Separately, HEI kept its dividend at 31 cents a share. It will be payable March 10 to stockholders of record at the close of business on Feb. 22.