Hawaiian Electric Industries (HE) 10-Q 2007 Q2 Quarterly report

HEI Exhibit 99.1

August 6, 2007

Contact:	Suzy P. Hollinger	(808) 543-7385 Telephone
	Manager, Treasury and Investor Relations	(808) 532-5812 Facsimile
		E-mail:shollinger@hei.com

HAWAIIAN ELECTRIC INDUSTRIES, INC. REPORTS SECOND QUARTER 2007 EARNINGS

HONOLULU — Hawaiian Electric Industries, Inc.(NYSE—HE) today reported consolidated net income for the second quarter of 2007 of $17.5 million, or $0.21 per share, compared with $27.2 million, or $0.34 per share for the second quarter of 2006. “Second quarter results continued to reflect challenges at both our operating subsidiaries. Our utility continued to experience rising costs of operating its systems reliably, while at the bank, the impact of persistently high short-term interest rates on costing liabilities continued to compress net interest margin and noninterest expenses were higher than in the second quarter of 2006,” said Constance H. Lau, HEI president and chief executive officer.

UTILITY RESULTS

Electric utility net income for the second quarter of 2007 was $10.7 million compared with $17.3 million for the same quarter in 2006. “Higher quarter-over-quarter other operation and maintenance (O&M) expenses more than offset the impacts of interim rate relief received at our Hawaii Island utility and higher kilowatthour sales,” said Lau.

Kilowatthour sales were up 1.7% from the same quarter of 2006 primarily due to new load growth and warmer weather.

Hawaiian Electric Industries, Inc. News Release

August 6, 2007

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Other O&M expenses for the quarter were higher by $13.2 million than in the same quarter in 2006 due primarily to $5.9 million of costs related to the increased number and scope of generating unit overhauls, $1.5 million of increased retirement benefits expenses, and $1.3 million of higher vegetation management and substation maintenance expenses. The remaining increase in other O&M expenses of $4.5 million includes increased costs to ensure reliable operations and execute energy efficiency programs.

Depreciation expenses were higher by $1.7 million quarter-over-quarter due to 2006 additions to plant in service.

“Rate cases for our three utilities have been focused on recovering these higher other O&M expenses, as well as the costs of capital investments made to ensure reliability,” said Lau.

High peak demand for electricity over the last several years has reduced reserve margins and increased costs at our Oahu utility. In May 2007, Public Utilities Commission approval was received for Hawaiian Electric Company’s 110 MW biofueled peaking unit on Oahu. Permitting and engineering for this unit began in 2003 with commercial operation scheduled for mid-2009. This renewable energy generating unit represents a significant step in Hawaiian Electric Company’s efforts supporting the State’s energy policy of reducing dependence on fossil fuels.

BANK RESULTS

Bank net income was $12.6 million in the second quarter of 2007 compared to $16.2 million for the same quarter last year, a decrease of $3.6 million.

“Higher short-term interest rates made the interest rate environment more challenging than it was during the same quarter of last year,” said Lau. “In addition, higher noninterest expenses impacted comparative quarter-over-quarter bank results,” Lau added.

Hawaiian Electric Industries, Inc. News Release

August 6, 2007

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Net interest income in the second quarter of 2007 was $51.1 million compared to $52.9 million in the second quarter of 2006. Increased interest income, primarily due to higher balances and yields on loans and other investments, was more than offset by increased funding costs and lower balances on investment and mortgage-related securities. Net interest margin was 3.20% in the second quarter of 2007, compared with 3.30% in the second quarter of 2006.

The bank provided $1.2 million for loan losses in the second quarter compared to no provision in the second quarter of 2006. “The provision recorded in the second quarter was attributable to one commercial borrower and was not reflective of a trend in the overall credit quality of the loan portfolio,” said Lau.

Noninterest income in the second quarter increased $2.6 million compared to the second quarter of 2006, due primarily to higher fee income on deposit liabilities.

Noninterest expenses for the quarter ended June 30, 2007, were $6.1 million higher than the same quarter in 2006, including $3.8 million higher services costs primarily to strengthen the bank’s risk management and compliance infrastructure.

HOLDING AND OTHER COMPANIES’ RESULTS

The holding and other companies’ net losses were $5.7 million in the second quarter of 2007 versus $6.3 million in the same quarter of 2006. The quarter-over-quarter improvement was primarily due to the absence in the second quarter of 2007 of a $1.2 million after-tax unrealized loss in the second quarter of 2006 from the company’s investment in Hoku Scientific, Inc. (Hoku). In January 2007, the company sold its remaining investment in Hoku.

Hawaiian Electric Industries, Inc. News Release

August 6, 2007

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WEBCAST AND TELECONFERENCE

Hawaiian Electric Industries, Inc. will conduct a webcast and teleconference call to review its second quarter 2007 earnings on Tuesday, August 7, 2007, at 7:00 a.m. Hawaii Time (1:00 p.m. Eastern Time). The event can be accessed through HEI’s website at http://www.hei.com or by dialing (866) 510-0708, passcode: 86482061 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 August 21, 2007, by dialing (888) 286-8010, passcode: 38620233.

Representing management will be Constance H. Lau, president and chief executive officer, Hawaiian Electric Industries, Inc., chairman, Hawaiian Electric Company, Inc. and chairman, president and chief executive officer, American Savings Bank, F.S.B.; T. Michael May, president and chief executive officer, Hawaiian Electric Company, Inc.; and Eric K. Yeaman, financial vice president, treasurer and chief financial officer, Hawaiian Electric Industries, Inc.

HEI supplies power to over 400,000 customers or 95% of Hawaii’s 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 consumers and businesses through American Savings Bank, the state’s third largest financial institution based on year-end asset size.

Hawaiian Electric Industries, Inc. News Release

August 6, 2007

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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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, 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.

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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)	2007			2006			2007			2006			2007			2006
Revenues
Electric utility	$	492,712		$	503,967		$	940,390		$	979,023		$	2,016,257		$	1,980,902
Bank		107,526			102,556			211,986			202,560			417,791			401,300
Other		525			(1,554	)		2,410			(1,652	)		1,711			18,403
		600,763			604,969			1,154,786			1,179,931			2,435,759			2,400,605
Expenses
Electric utility		463,923			464,121			898,609			893,597			1,893,184			1,808,026
Bank		87,832			76,397			173,864			149,386			344,285			294,380
Other		3,699			3,722			8,463			7,068			14,924			15,017
		555,454			544,240			1,080,936			1,050,051			2,252,393			2,117,423
Operating income (loss)
Electric utility		28,789			39,846			41,781			85,426			123,073			172,876
Bank		19,694			26,159			38,122			53,174			73,506			106,920
Other		(3,174	)		(5,276	)		(6,053	)		(8,720	)		(13,213	)		3,386
		45,309			60,729			73,850			129,880			183,366			283,182
Interest expense–other than on deposit liabilities and other bank borrowings		(19,282	)		(19,134	)		(39,793	)		(38,251	)		(77,220	)		(75,595	)
Allowance for borrowed funds used during construction		586			719			1,184			1,421			2,642			2,539
Preferred stock dividends of subsidiaries		(473	)		(473	)		(946	)		(946	)		(1,890	)		(1,890	)
Allowance for equity funds used during construction		1,202			1,588			2,434			3,136			5,646			5,972
Income before income taxes		27,342			43,429			36,729			95,240			112,544			214,208
Income taxes		9,793			16,205			12,416			35,679			39,791			79,633
Net income	$	17,549		$	27,224		$	24,313		$	59,561		$	72,753		$	134,575
Per common share
Basic earnings	$	0.21		$	0.34		$	0.30		$	0.73		$	0.89		$	1.66
Diluted earnings	$	0.21		$	0.33		$	0.30		$	0.73		$	0.89		$	1.66
Dividends	$	0.31		$	0.31		$	0.62		$	0.62		$	1.24		$	1.24
Weighted-average number of
common shares outstanding		81,907			81,100			81,679			81,041			81,461			80,977
Adjusted weighted-average shares		82,124			81,432			81,906			81,360			81,644			81,267
Net income (loss) by segment
Electric utility	$	10,650		$	17,286		$	11,103		$	38,274		$	47,776		$	79,047
Bank		12,582			16,218			24,178			33,045			46,915			66,615
Other		(5,683	)		(6,280	)		(10,968	)		(11,758	)		(21,938	)		(11,087	)
Net income	$	17,549		$	27,224		$	24,313		$	59,561		$	72,753		$	134,575

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, 2006 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, 2007 and June 30, 2007 (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)	2007			2006			2007			2006
Operating revenues	$	491,249		$	503,350		$	938,046		$	977,321
Operating expenses
Fuel oil		167,121			192,314			327,050			367,652
Purchased power		133,727			122,438			245,243			240,158
Other operation		53,643			47,934			100,836			89,953
Maintenance		29,869			22,382			57,205			39,434
Depreciation		34,272			32,542			68,539			65,075
Taxes, other than income taxes		44,903			46,218			87,450			90,741
Income taxes		6,492			11,020			10,998			24,244
		470,027			474,848			897,321			917,257
Operating income		21,222			28,502			40,725			60,064
Other income
Allowance for equity funds used during construction		1,202			1,588			2,434			3,136
Other, net		1,049			521			(5,149	)		1,430
		2,251			2,109			(2,715	)		4,566
Income before interest and other charges		23,473			30,611			38,010			64,630
Interest and other charges
Interest on long-term debt		11,390			10,776			22,886			21,554
Amortization of net bond premium and expense		646			543			1,192			1,086
Other interest charges		874			2,226			3,015			4,139
Allowance for borrowed funds used during construction		(586	)		(719	)		(1,184	)		(1,421	)
Preferred stock dividends of subsidiaries		229			229			458			458
		12,553			13,055			26,367			25,816
Income before preferred stock dividends of HECO		10,920			17,556			11,643			38,814
Preferred stock dividends of HECO		270			270			540			540
Net income for common stock	$	10,650		$	17,286		$	11,103		$	38,274
OTHER ELECTRIC UTILITY INFORMATION
Kilowatthour sales (millions)		2,501			2,460			4,905			4,850
Cooling degree days (Oahu)		1,255			1,081			2,100			1,854
Average fuel cost per barrel	$	62.74		$	68.78		$	60.43		$	66.20

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, 2006 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, 2007 and June 30, 2007 (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)	2007		2006		2007		2006
Interest and dividend income
Interest and fees on loans	$	60,093	$	57,323	$	120,374	$	112,476
Interest and dividends on investment and
mortgage-related securities		30,428		30,870		58,593		60,947
		90,521		88,193		178,967		173,423
Interest expense
Interest on deposit liabilities		20,832		17,001		41,570		32,394
Interest on other borrowings		18,581		18,308		36,987		35,470
		39,413		35,309		78,557		67,864
Net interest income		51,108		52,884		100,410		105,559
Provision for loan losses		1,200		—		1,200		—
Net interest income after provision for loan losses		49,908		52,884		99,210		105,559
Noninterest income
Fees from other financial services		6,885		6,742		13,386		13,182
Fee income on deposit liabilities		6,457		4,376		12,512		8,565
Fee income on other financial products		1,856		2,132		3,868		4,569
Other income		1,807		1,113		3,253		2,821
		17,005		14,363		33,019		29,137
Noninterest expense
Compensation and employee benefits		18,164		17,476		36,560		35,313
Occupancy		5,341		4,490		10,289		8,953
Equipment		3,785		3,636		7,263		7,132
Services		7,895		4,124		16,253		7,841
Data processing		2,646		2,547		5,203		5,007
Other expense		9,336		8,815		18,516		17,276
		47,167		41,088		94,084		81,522
Income before income taxes		19,746		26,159		38,145		53,174
Income taxes		7,164		9,941		13,967		20,129
Net income	$	12,582	$	16,218	$	24,178	$	33,045
Net interest margin (%)		3.20		3.30		3.14		3.30

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, 2006 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, 2007 and June 30, 2007 (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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