Hawaiian Electric Industries (HE) 10-Q 2006 Q2 Quarterly report

HEI Exhibit 99

August 1, 2006

Contact:	Suzy P. Hollinger	(808) 543-7385 Telephone
	Manager, Treasury & Investor Relations	(808) 543-7966 Facsimile
		E-mail: shollinger@hei.com

HAWAIIAN ELECTRIC INDUSTRIES, INC. REPORTS SECOND QUARTER 2006 EARNINGS

HONOLULU — Hawaiian Electric Industries, Inc. (NYSE - HE) today reported income from continuing operations for the three months ended June 30, 2006, of $27.2 million, or 34 cents per share, compared with last year’s second quarter income from continuing operations of $28.3 million, or 35 cents per share. “Quarter-over-quarter, electric utility results declined due to lower sales from cooler and less humid weather and customer conservation and higher operation and maintenance expenses, while bank results improved due to strong loan growth and an improved net interest margin,” said Constance H. Lau, HEI president and chief executive officer.

Hawaiian Electric Company’s net income for the second quarter of 2006 was $17.3 million compared with $19.6 million for the same quarter last year. Kilowatthour sales declined 2.3% quarter-over-quarter or $8 million in revenues. “Although the number of customers grew during the quarter, they reduced their usage of electricity in response to weather conditions and the higher cost of electricity during the quarter,” Lau said. Offsetting the effects of lower kilowatthour sales was a $10 million interim increase in quarterly revenues granted to the company’s Oahu utility by the Hawaii Public Utilities Commission in late September 2005.

Other operation and maintenance expenses were higher by $8.7 million in the second quarter compared to the second quarter of 2005, due in part to $2.5 million higher maintenance and $2.3 million of higher retirement benefits expenses. Production maintenance was higher due

Hawaiian Electric Industries, Inc.

August 1, 2006

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to increased generating station maintenance, and transmission and distribution maintenance was higher due to increased vegetation management and higher distribution line maintenance. The remaining increase in operation and maintenance expenses of $3.9 million includes increased staffing and other costs to support the increased level of peak demand that has occurred over the past five years as well as reliability, customer service and energy efficiency programs.

Bank net income in the second quarter of 2006 increased almost 20% to $16.2 million compared with $13.6 million in the second quarter of 2005. “American Savings Bank’s second quarter results were strong considering significant margin pressure from the prolonged flat/inverted yield curve,” said Lau, “reflecting the solid growth of American Savings Bank’s commercial and commercial real estate businesses and its transformation to a full-service community bank.”

Net interest income increased to $52.9 million in the second quarter of 2006 compared with $48.8 million in the second quarter of 2005. The increase in net interest income was due to higher loan balances, higher yields on loans and mortgage-related securities and investments and an increase in net interest margin. The bank’s net interest margin increased to 3.30% in the second quarter of 2006, compared to 3.07% in the second quarter of 2005. Increased interest income from growth in loan balances and increased yields on loans and mortgage-related securities and investments in the second quarter of 2006 more than offset increased funding costs from higher short-term interest rates and a shift in the mix of deposits and borrowings.

Also in the second quarter of 2006, continued strong asset quality offset the need to provision for the additional loan growth.

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August 1, 2006

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The holding and other companies’ results were $(6.3) million in the second quarter compared with $(4.9) million in the second quarter of 2005 due in part to $1.3 million of unrealized investment losses (after tax).

HEI supplies power to over 400,000 customers or 95% of the Hawaii population through its electric utilities, Hawaiian Electric Company, Hawaii Electric Light Company and Maui Electric Company and provides a wide array of banking and other financial services to Hawaii consumers and businesses through American Savings Bank, the state’s third largest bank based on asset size.

Hawaiian Electric Industries, Inc.

August 1, 2006

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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 page iv of HEI’s Form 10-Q for the quarter ended March 31, 2006, 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.

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three months ended June 30,						Six months ended June 30,						Twelve months ended June 30,
(in thousands, except per share amounts)	2006			2005			2006			2005			2006			2005
Revenues
Electric utility	$	503,967		$	429,730		$	979,023		$	804,505		$	1,980,902		$	1,637,958
Bank		102,556			91,946			202,560			189,170			401,300			374,214
Other		(1,554	)		586			(1,652	)		1,215			18,403			7,867
		604,969			522,262			1,179,931			994,890			2,400,605			2,020,039
Expenses
Electric utility		464,121			387,083			893,597			730,252			1,808,026			1,479,856
Bank		76,397			69,744			149,386			138,015			294,380			267,204
Other		3,722			3,986			7,068			8,503			15,017			18,682
		544,240			460,813			1,050,051			876,770			2,117,423			1,765,742
Operating income (loss)
Electric utility		39,846			42,647			85,426			74,253			172,876			158,102
Bank		26,159			22,202			53,174			51,155			106,920			107,010
Other		(5,276	)		(3,400	)		(8,720	)		(7,288	)		3,386			(10,815	)
		60,729			61,449			129,880			118,120			283,182			254,297
Interest expense–other than bank		(19,134	)		(19,130	)		(38,251	)		(37,965	)		(75,595	)		(74,588	)
Allowance for borrowed funds used during construction		719			475			1,421			902			2,539			2,067
Preferred stock dividends of subsidiaries		(473	)		(474	)		(946	)		(950	)		(1,890	)		(1,901	)
Allowance for equity funds used during construction		1,588			1,182			3,136			2,269			5,972			4,941
Income from continuing operations before income taxes		43,429			43,502			95,240			82,376			214,208			184,816
Income taxes		16,205			15,167			35,679			29,946			79,633			66,817
Income from continuing operations		27,224			28,335			59,561			52,430			134,575			117,999
Discontinued operations–gain (loss) on disposal, net of income taxes		—			(755	)		—			(755	)		—			1,158
Net income	$	27,224		$	27,580		$	59,561		$	51,675		$	134,575		$	119,157
Per common share
Basic earnings (loss) - Continuing operations	$	0.34		$	0.35		$	0.73		$	0.65		$	1.66		$	1.46
- Discontinued operations		—			(0.01	)		—			(0.01	)		—			0.02
	$	0.34		$	0.34		$	0.73		$	0.64		$	1.66		$	1.48
Diluted earnings (loss) - Continuing operations	$	0.33		$	0.35		$	0.73		$	0.65		$	1.66		$	1.46
- Discontinued operations		—			(0.01	)		—			(0.01	)	$	—		$	0.01
	$	0.33		$	0.34		$	0.73		$	0.64		$	1.66		$	1.47
Dividends	$	0.31		$	0.31		$	0.62		$	0.62		$	1.24		$	1.24
Weighted-average number of common shares outstanding		81,100			80,814			81,041			80,741			80,977			80,637
Adjusted weighted-average shares		81,432			81,213			81,360			81,145			81,267			80,950
Income (loss) from continuing operations by segment
Electric utility	$	17,286		$	19,644		$	38,274		$	32,029		$	79,047		$	71,448
Bank		16,218			13,552			33,045			31,313			66,615			63,397
Other		(6,280	)		(4,861	)		(11,758	)		(10,912	)		(11,087	)		(16,846	)
Income from continuing operations	$	27,224		$	28,335		$	59,561		$	52,430		$	134,575		$	117,999

This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2005 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, 2006 and June 30, 2006 (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.

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Hawaiian Electric Company, Inc. (HECO) and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three months ended June 30,						Six months ended June 30,
(in thousands)	2006			2005			2006			2005
Operating revenues	$	503,350		$	428,807		$	977,321		$	802,497
Operating expenses
Fuel oil		192,314			148,775			367,652			264,401
Purchased power		122,438			106,369			240,158			207,585
Other operation		47,934			41,794			89,953			83,110
Maintenance		22,382			19,837			39,434			37,775
Depreciation		32,542			30,822			65,075			61,642
Taxes, other than income taxes		46,218			39,293			90,741			75,264
Income taxes		11,020			12,293			24,244			20,031
		474,848			399,183			917,257			749,808
Operating income		28,502			29,624			60,064			52,689
Other income
Allowance for equity funds used during construction		1,588			1,182			3,136			2,269
Other, net		521			777			1,430			1,620
		2,109			1,959			4,566			3,889
Income before interest and other charges		30,611			31,583			64,630			56,578
Interest and other charges
Interest on long-term debt		10,776			10,656			21,554			21,565
Amortization of net bond premium and expense		543			557			1,086			1,113
Other interest charges		2,226			702			4,139			1,775
Allowance for borrowed funds used during construction		(719	)		(475	)		(1,421	)		(902	)
Preferred stock dividends of subsidiaries		229			229			458			458
		13,055			11,669			25,816			24,009
Income before preferred stock dividends of HECO		17,556			19,914			38,814			32,569
Preferred stock dividends of HECO		270			270			540			540
Net income for common stock	$	17,286		$	19,644		$	38,274		$	32,029
OTHER ELECTRIC UTILITY INFORMATION
Kilowatthour sales (millions)		2,460			2,519			4,850			4,866
Cooling degree days (Oahu)		1,081			1,471			1,854			2,251
Average fuel cost per barrel	$	68.78		$	51.90		$	66.20		$	48.96

This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO’s Annual Report on SEC Form 10-K for the year ended December 31, 2005 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, 2006 and June 30, 2006 (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.

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

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2006		2005		2006		2005
Interest and dividend income
Interest and fees on loans	$	57,323	$	50,657	$	112,476	$	99,170
Interest and dividends on investment and mortgage-related securities		30,870		27,523		60,947		62,386
		88,193		78,180		173,423		161,556
Interest expense
Interest on deposit liabilities		17,001		12,460		32,394		24,477
Interest on other borrowings		18,308		16,893		35,470		34,641
		35,309		29,353		67,864		59,118
Net interest income		52,884		48,827		105,559		102,438
Reversal of allowance for loan losses		—		—		—		(3,100	)
Net interest income after reversal of allowance for loan losses		52,884		48,827		105,559		105,538
Noninterest income
Fees from other financial services		6,742		6,333		13,182		12,196
Fee income on deposit liabilities		4,376		4,092		8,565		8,263
Fee income on other financial products		2,132		2,154		4,569		4,589
Gain on sale of securities		—		175		—		175
Other income		1,113		1,012		2,821		2,391
		14,363		13,766		29,137		27,614
Noninterest expense
Compensation and employee benefits		17,476		17,441		35,313		34,068
Occupancy		4,490		4,088		8,953		8,106
Equipment		3,636		3,302		7,132		6,701
Services		4,124		3,941		7,841		7,608
Data processing		2,547		2,503		5,007		5,548
Other expense		8,815		9,116		17,276		19,966
		41,088		40,391		81,522		81,997
Income before minority interests and income taxes		26,159		22,202		53,174		51,155
Minority interests		—		18		—		45
Income taxes		9,941		8,631		20,129		19,793
Income before preferred stock dividends		16,218		13,553		33,045		31,317
Preferred stock dividends		—		1		—		4
Net income for common stock	$	16,218	$	13,552	$	33,045	$	31,313
Net interest margin (%)		3.30		3.07		3.30		3.21

This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2005 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, 2006 and June 30, 2006 (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.

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