Hawaiian Electric Industries (HE) 10-Q 2009 Q1 Quarterly report

HEI Exhibit 99.1

May 4, 2009

Contact:	Suzy P. Hollinger	(808) 543-7385 Telephone
	Manager, Treasury and Investor Relations	(808) 203-1155 Facsimile
		E-mail: shollinger@hei.com

HEI EARNS $20 MILLION IN FIRST QUARTER; UTILITY AND BANK PURSUE INITIATIVES TO OFFSET LOWER SALES AND HIGHER COSTS

HONOLULU — Hawaiian Electric Industries, Inc.(NYSE - HE) today reported consolidated net income for the first quarter of 2009 of $20.4 million or 23 cents per share, compared with $34.0 million or 41 cents per share for the first quarter of 2008.

“As expected, first quarter earnings were lower reflecting the impact of the global financial and economic crisis on Hawaii which lowered electric sales and resulted in a higher provision for loan losses at the bank. In addition, cooler, less humid weather, together with higher expected utility operating and maintenance costs, reduced earnings quarter-over-quarter,” said Constance H. Lau, HEI president and chief executive officer. “To help offset these negative impacts, both our utility and bank are continuing to aggressively pursue initiatives which have improved operating and financial performance over the last year and positioned us to weather this downturn and to grow as economic conditions improve,” added Lau.

UTILITY RESULTS

Electric utility net income for the first quarter of 2009 was $14.1 million compared with $24.6 million in 2008. Lower net income was primarily due to lower electric sales and higher operations and maintenance (O&M) expenses.

Hawaiian Electric Industries, Inc. News Release

May 4, 2009

Page 2

Kilowatthour sales were down 7.4% compared with the same quarter of 2008, impacting utility net income by an estimated $9 million. “About two-thirds of the decline in sales is attributable to cooler, less humid weather and one less day of sales due to the leap year day in 2008,” said Lau. “The soft economy and overall ongoing customer conservation account for the remainder of the first quarter sales decline.”

O&M expenses were up $9.4 million or 11.8% quarter-over-quarter, slightly below the 13% increase still expected for the full year. The forecast increase for the year is based primarily on planned higher production, transmission and distribution costs to maintain system reliability; additional expenses expected to be incurred for the Campbell Industrial Park CT-1 generating unit after it commences commercial operations this summer; and higher costs to pursue renewable initiatives. The increase in O&M expenses for the quarter is due primarily to: 1) $2.6 million higher maintenance expense due primarily to the planned greater scope of generating unit overhauls, and more overhead line maintenance and vegetation management; 2) $2.5 million higher demand-side management costs that are generally passed on to customers as a surcharge; and 3) $1.8 million higher planned production, transmission and distribution operations expenses and costs for renewable initiatives to support the Hawaii Clean Energy Initiative.

Quarter-over-quarter depreciation expenses were higher by $1 million due to 2008 plant additions.

BANK RESULTS

Bank net income was $10.9 million in the first quarter of 2009 compared to $14.6 million for the same quarter last year.

Hawaiian Electric Industries, Inc. News Release

May 4, 2009

Page 3

Net interest income in the first quarter of 2009 was $50.9 million compared to $50.5 million in the first quarter of 2008. Lower interest expense, primarily due to lower borrowings and lower rates on deposits and borrowings, more than offset lower balances of mortgage-related securities and lower interest income on loans. Net interest margin was 4.11% in the first quarter of 2009, compared with 3.13% in the first quarter of 2008.

“The core bank business is performing well,” said Lau. “Thanks to the bank’s balance sheet restructuring that was executed in June of 2008, the bank is earning the same net interest income on approximately $1.7 billion less assets than in the first quarter of last year,” added Lau. “Profitability has improved significantly as evidenced by the nearly 100 basis points increase in net interest margin.”

The bank recorded an $8.3 million provision for loan losses for the first quarter of 2009 compared with a $6.3 million provision for the fourth quarter of 2008 and less than a million dollars in the quarter a year ago. This quarter’s provision reflected the reclassification of a single commercial credit, which accounted for about 40% of the provision and higher delinquencies in residential lot loans, which accounted for 20% of the provision. In total, nonperforming assets ratio increased from 0.48% at December 31, 2008 to 1.37% at March 31, 2009. Excluding the single commercial credit and residential lot loans, nonperforming assets ratio at March 31, 2009, was 0.57%.

Noninterest income for the first quarter of 2009 was $16.3 million, $1.7 million lower than the same quarter of 2008, primarily due to a gain on sale of stock in a credit card organization in 2008.

Noninterest expense for the first quarter 2009 was $2.4 million lower than the same period in 2008, primarily due to lower legal and consulting expenses, partially offset by increased compensation and employee benefits expenses.

Hawaiian Electric Industries, Inc. News Release

May 4, 2009

Page 4

“We’re pleased with the progress the bank is making on its performance improvement initiatives. While management expects credit costs to remain elevated in the near-term, our bank continues to focus on efficiency improvements that should help offset the higher levels of loan loss provisions we expect through this economic downturn.”

HOLDING AND OTHER COMPANIES’ RESULTS

The holding and other companies’ net losses were $4.6 million in the first quarter of 2009 versus net losses of $5.2 million for the first quarter of 2008, primarily from lower interest expenses.

WEBCAST AND TELECONFERENCE

Hawaiian Electric Industries, Inc. will conduct a webcast and teleconference call to review its first quarter 2009 earnings on Wednesday, May 6, 2009, at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The event can be accessed through HEI’s website athttp://www.hei.com or by dialing (866) 700-7477, passcode: 20133959 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 May 20, 2009, by dialing (888) 286-8010, passcode: 82965049.

HEI supplies power to over 400,000 customers or 95% of Hawaii’s population through its electric utilities, Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc. and Maui Electric Company, Ltd. and provides a wide array of banking and other financial services to consumers and businesses through American Savings Bank, F.S.B., one of Hawaii’s largest financial institutions.

Hawaiian Electric Industries, Inc. News Release

May 4, 2009

Page 5

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 pages v and vi of HEI’s Annual Report on Form 10-K for the year ended December 31, 2008, 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 March 31,						Twelve months ended March 31,
(in thousands, except per share amounts)	2009			2008			2009			2008
Revenues
Electric utility	$	461,797		$	623,889		$	2,698,258		$	2,282,525
Bank		82,032			105,844			334,741			426,879
Other		(32	)		(116	)		101			2,608
		543,797			729,617			3,033,100			2,712,012
Expenses
Electric utility		430,728			572,906			2,526,813			2,113,949
Bank		64,911			82,481			314,031			337,934
Other		3,500			3,484			14,187			14,192
		499,139			658,871			2,855,031			2,466,075
Operating income (loss)
Electric utility		31,069			50,983			171,445			168,576
Bank		17,121			23,363			20,710			88,945
Other		(3,532	)		(3,600	)		(14,086	)		(11,584	)
		44,658			70,746			178,069			245,937
Interest expense–other than on deposit liabilities and other bank borrowings		(17,833	)		(19,249	)		(74,726	)		(77,294	)
Allowance for borrowed funds used during construction		1,622			762			4,601			2,716
Allowance for equity funds used during construction		3,605			1,901			11,094			5,888
Income before income taxes		32,052			54,160			119,038			177,247
Income taxes		11,184			19,720			40,442			63,375
Net income		20,868			34,440			78,596			113,872
Less net income attributable to noncontrolling interest - preferred stock of subsidiaries		473			473			1,890			1,890
Net income for common stock	$	20,395		$	33,967		$	76,706		$	111,982
Basic earnings per common share	$	0.23		$	0.41		$	0.89		$	1.35
Diluted earnings per common share	$	0.22		$	0.41		$	0.89		$	1.35
Dividends per common share	$	0.31		$	0.31		$	1.24		$	1.24
Weighted-average number of common shares outstanding		90,604			83,472			86,392			82,716
Adjusted weighted-average shares		90,692			83,614			86,509			82,876
Income (loss) by segment
Electric utility	$	14,132		$	24,585		$	81,522		$	76,288
Bank		10,882			14,576			14,133			56,087
Other		(4,619	)		(5,194	)		(18,949	)		(20,393	)
Net income for common	$	20,395		$	33,967		$	76,706		$	111,982

This information should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2008 (included in HEI’s Form 8-K dated February 19, 2009) and the consolidated financial statements and the notes thereto in HEI’s Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2009 (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.

6

Hawaiian Electric Company, Inc. (HECO) and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three months ended March 31,	2009			2008
(dollars in thousands, except per barrel amounts)
Operating revenues	$	459,285		$	622,494
Operating expenses
Fuel oil		145,289			249,543
Purchased power		114,484			150,795
Other operation		62,397			55,579
Maintenance		26,163			23,613
Depreciation		36,424			35,434
Taxes, other than income taxes		45,735			57,486
Income taxes		8,544			15,378
		439,036			587,828
Operating income		20,249			34,666
Other income
Allowance for equity funds used during construction		3,605			1,901
Other, net		2,368			1,096
		5,973			2,997
Income before interest and other charges		26,222			37,663
Interest and other charges
Interest on long-term debt		11,912			11,724
Amortization of net bond premium and expense		675			631
Other interest charges		626			986
Allowance for borrowed funds used during construction		(1,622	)		(762	)
		11,591			12,579
Income before preferred stock dividends of HECO and subsidiaries		14,631			25,084
Less net income attributable to noncontrolling interest - preferred stock of subsidiaries		229			229
Income before preferred stock dividends of HECO		14,402			24,855
Preferred stock dividends of HECO		270			270
Net income for common stock	$	14,132		$	24,585
OTHER ELECTRIC UTILITY INFORMATION
Kilowatthour sales (millions)		2,231			2,409
Wet-bulb temperature (Oahu; degrees Fahrenheit)		65.1			66.6
Cooling degree days (Oahu)		759			954
Average fuel oil cost per barrel	$	60.02		$	93.89

This information should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2008 (included in HECO Exhibit 99 to HECO’s Form 8-K dated February 19, 2009) and the consolidated financial statements and the notes thereto in HECO’s Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2009 (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.

7

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

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three months ended
(dollars in thousands)	March 31, 2009		December 31, 2008			March 31, 2008
Interest and dividend income
Interest and fees on loans	$	58,092	$	60,898		$	63,465
Interest and dividends on investment and mortgage-related securities		7,676		8,130			24,451
		65,768		69,028			87,916
Interest expense
Interest on deposit liabilities		11,565		13,574			18,220
Interest on other borrowings		3,264		3,911			19,149
		14,829		17,485			37,369
Net interest income		50,939		51,543			50,547
Provision for loan losses		8,300		6,300			900
Net interest income after provision for loan losses		42,639		45,243			49,647
Noninterest income
Fees from other financial services		5,919		6,292			6,823
Fee income on deposit liabilities		6,711		7,443			6,794
Fee income on other financial products		1,044		1,469			1,804
Gain on sale of securities		—		12			935
Loss on investments		—		(7,764	)		—
Other income		2,590		2,604			1,572
		16,264		10,056			17,928
Noninterest expense
Compensation and employee benefits		19,360		21,407			18,240
Occupancy		5,129		5,614			5,397
Equipment		2,790		3,034			3,114
Services		3,418		3,175			5,673
Data processing		3,187		2,659			2,616
Other expense		7,927		9,553			9,194
		41,811		45,442			44,234
Income before income taxes		17,092		9,857			23,341
Income taxes		6,210		3,918			8,765
Net income	$	10,882	$	5,939		$	14,576
OTHER BANK INFORMATION (%)
Return on average assets		0.82		0.44			0.85
Return on average equity		9.16		4.69			9.73
Revenue growth (linked quarter)		9.10		(10.71	)		1.77
Net interest margin		4.11		4.07			3.13
Net charge-offs to total loans (annualized) *		0.20		0.20			0.05
Nonperforming assets to total loans and real estate owned * **		1.37		0.48			0.18
Allowance for loan losses to total loans *		1.04		0.84			0.73
Efficiency ratio		62		74			65
Average Tier-1 leverage ratio		8.7		8.4			7.8

* Ratio as percent of end of period loans

** Regulatory basis

This information should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2008 (included in HEI Exhibit 13 to HEI’s Form 8-K dated February 19, 2009) and the consolidated financial statements and the notes thereto in HEI's Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2009 (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.

8