Hawaiian Electric Company, Inc. PFD SER E 5% (HAWEL) 10-Q 2007 Q3 Quarterly report

HEI Exhibit 99.1

November 1, 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 THIRD QUARTER 2007 EARNINGS

HONOLULU — Hawaiian Electric Industries, Inc.(NYSE – HE) today reported net income for the quarter ended September 30, 2007 of $19.9 million, or $0.24 per share, compared with $32.3 million, or $0.40 per share for the same quarter of 2006. “Third quarter results were significantly impacted by the recognition of a reserve for a potential refund to Oahu electric customers of $15.0 million ($8.3 million net of taxes or $0.10 per share) resulting from an amended proposed decision and order on Hawaiian Electric Company’s 2005 test year rate case,” said Constance H. Lau, HEI’s president and chief executive officer. “Results were also down quarter-over-quarter as our utility continued to incur higher costs to provide reliable electric services and our bank continued to experience margin compression and increased its loss reserve primarily due to commercial loans to a single borrower,” said Lau.

UTILITY RESULTS

Electric utility net income for the third quarter of 2007 was $12.9 million compared with $23.7 million for the same quarter in 2006. “Reserves made for the potential rate case refund to Oahu customers and higher quarter-over-quarter other operation and maintenance (O&M) costs

Hawaiian Electric Industries, Inc. News Release

November 1, 2007

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more than offset the impacts of the interim rate relief received for our Hawaii Island utility,” said Lau.

As previously disclosed, the potential refund resulted from the exclusion of a prepaid pension asset from rate base in the Hawaii Public Utilities Commission’s (PUC) proposed decision and order on HECO’s 2005 rate case. In its interim decision on the case, the PUC had allowed HECO to include the prepaid pension asset in rate base.

Kilowatthour sales were essentially flat compared with the same quarter in 2006. Lower consumption by large commercial customers was partially offset by new load growth and warmer weather.

Other O&M expenses for the quarter were higher by $12.4 million due primarily to $5.4 million of production maintenance expenses resulting from higher generating station maintenance and the increased number and scope of generating unit overhauls and $1.7 million of increased employee benefits expenses. The remaining increase in O&M expenses of $5.3 million includes costs to execute energy efficient programs and ensure reliable operations.

Depreciation and amortization expenses were higher by $1.7 million quarter-over-quarter due to 2006 additions to plant in service, including Hawaiian Electric Company’s new dispatch center, the Ford Island substation, and Maui Electric Company’s 18-megawatt steam turbine.

Recovery of increased O&M expenses and capital expenditures were primary reasons all three utilities—Hawaiian Electric Company, Hawaii Electric Light Company and Maui Electric Company—have filed rate cases with the Hawaii Public Utilities Commission.

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November 1, 2007

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BANK RESULTS

Bank net income was $11.7 million in the third quarter of 2007 compared to $13.5 million for the same quarter last year. “The volatility in the capital markets from the housing market slowdown and liquidity issues in the third quarter made it a difficult environment for financial institutions. Fortunately, we were fairly well-insulated from the deteriorating credit conditions that have impacted many banks during the quarter,” said Lau. “The interest rate environment remained challenging and results for the quarter were impacted by increased funding costs due to the continued shift in mix from lower costing deposit accounts to higher costing CDs and other borrowings, as well as higher provision expenses primarily related to a single commercial borrower,” Lau added.

Net interest income in the third quarter of 2007 was $47.7 million compared to $49.2 million in the third quarter of 2006. Increased interest income, primarily due to higher balances on loans and other investments, was more than offset by increased interest expense due to higher rates on deposits and higher balances of other borrowings. Net interest margin was 3.01% in the third quarter of 2007, compared with 3.10% in the third quarter of 2006.

The bank provided $2.7 million for possible loan losses in the third quarter of 2007 compared to no provision in the third quarter of 2006. “The bank’s overall credit quality remained good during the third quarter. The provision recorded in the quarter was primarily attributable to the commercial borrower for which we provisioned last quarter, and is not reflective of a trend in the overall credit quality of the loan portfolio,” said Lau.

Noninterest income in the third quarter increased $1.6 million compared to the third quarter of 2006, due primarily to higher fee income on deposits. In addition, noninterest income

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November 1, 2007

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in the third quarter of 2006 included a $1.7 million gain on sale of securities. There were no similar gains in the third quarter of 2007.

Noninterest expense decreased slightly quarter-over-quarter.

HOLDING AND OTHER COMPANIES’ RESULTS

The holding and other companies’ net losses were $4.7 million in the third quarter of 2007 and $4.8 million in the third quarter of 2006.

WEBCAST AND TELECONFERENCE

Hawaiian Electric Industries, Inc. will conduct a webcast and teleconference call to review its third quarter on Friday, November 2, 2007, at 7:00 a.m. Hawaii Time (1:00 p.m. Eastern Time). The event can be accessed through HEI’s website athttp://www.hei.com or by dialing (800) 435-1261, passcode: 62906597 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 November 16, 2007, by dialing (888) 286-8010, passcode: 62187695.

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.; Timothy K. Schools, chief operating officer, American Savings Bank, F.S.B.;

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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.

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November 1, 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 June 30, 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 September 30						Nine months ended September 30						Twelve months ended September 30
(in thousands, except per share amounts)	2007			2006			2007			2006			2007			2006
Revenues
Electric utility	$	567,615		$	569,838		$	1,508,005		$	1,548,861		$	2,014,034		$	2,059,401
Bank		105,507			103,338			317,493			305,898			419,960			407,207
Other		339			718			2,749			(934	)		1,332			11,976
		673,461			673,894			1,828,247			1,853,825			2,435,326			2,478,584
Expenses
Electric utility		536,249			521,187			1,434,858			1,414,784			1,908,246			1,885,407
Bank		86,960			82,760			260,824			232,146			348,485			305,647
Other		2,235			3,591			10,698			10,659			13,568			15,231
		625,444			607,538			1,706,380			1,657,589			2,270,299			2,206,285
Operating income (loss)
Electric utility		31,366			48,651			73,147			134,077			105,788			173,994
Bank		18,547			20,578			56,669			73,752			71,475			101,560
Other		(1,896	)		(2,873	)		(7,949	)		(11,593	)		(12,236	)		(3,255	)
		48,017			66,356			121,867			196,236			165,027			272,299
Interest expense–other than on deposit liabilities and other bank borrowings		(19,589	)		(18,275	)		(59,382	)		(56,526	)		(78,534	)		(74,880	)
Allowance for borrowed funds used during construction		656			838			1,840			2,259			2,460			2,819
Preferred stock dividends of subsidiaries		(474	)		(471	)		(1,420	)		(1,417	)		(1,893	)		(1,890	)
Allowance for equity funds used during construction		1,336			1,838			3,770			4,974			5,144			6,404
Income before income taxes		29,946			50,286			66,675			145,526			92,204			204,752
Income taxes		10,065			17,963			22,481			53,642			31,893			75,344
Net income	$	19,881		$	32,323		$	44,194		$	91,884		$	60,311		$	129,408
Per common share
Basic earnings	$	0.24		$	0.40		$	0.54		$	1.13		$	0.74		$	1.60
Diluted earnings	$	0.24		$	0.40		$	0.54		$	1.13		$	0.74		$	1.59
Dividends	$	0.31		$	0.31		$	0.93		$	0.93		$	1.24		$	1.24
Weighted-average number of common shares outstanding		82,481			81,213			81,949			81,099			81,781			81,055
Adjusted weighted-average shares		82,640			81,556			82,180			81,383			81,984			81,319
Net income (loss) by segment
Electric utility	$	12,875		$	23,666		$	23,978		$	61,940		$	36,985		$	80,126
Bank		11,731			13,470			35,909			46,515			45,176			64,174
Other		(4,725	)		(4,813	)		(15,693	)		(16,571	)		(21,850	)		(14,892	)
Net income	$	19,881		$	32,323		$	44,194		$	91,884		$	60,311		$	129,408

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, June 30, 2007 and September 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 September 30						Nine months ended September 30
(in thousands)	2007			2006			2007			2006
Operating revenues	$	561,720		$	568,236		$	1,499,766		$	1,545,557
Operating expenses
Fuel oil		222,721			227,288			549,771			594,940
Purchased power		144,918			138,758			390,161			378,916
Other operation		54,113			46,612			154,949			136,565
Maintenance		28,594			23,653			85,799			63,087
Depreciation		34,273			32,539			102,812			97,614
Taxes, other than income taxes		51,389			51,985			138,839			142,726
Income taxes		4,976			14,665			15,974			38,909
		540,984			535,500			1,438,305			1,452,757
Operating income		20,736			32,736			61,461			92,800
Other income
Allowance for equity funds used during construction		1,336			1,838			3,770			4,974
Other, net		3,819			1,379			(1,330	)		2,809
		5,155			3,217			2,440			7,783
Income before interest and other charges		25,891			35,953			63,901			100,583
Interest and other charges
Interest on long-term debt		11,478			10,777			34,364			32,331
Amortization of net bond premium and expense		621			565			1,813			1,651
Other interest charges		1,075			1,285			4,090			5,424
Allowance for borrowed funds used during construction		(656	)		(838	)		(1,840	)		(2,259	)
Preferred stock dividends of subsidiaries		228			228			686			686
		12,746			12,017			39,113			37,833
Income before preferred stock dividends of HECO		13,145			23,936			24,788			62,750
Preferred stock dividends of HECO		270			270			810			810
Net income for common stock	$	12,875		$	23,666		$	23,978		$	61,940
OTHER ELECTRIC UTILITY INFORMATION								—
Kilowatthour sales (millions)		2,663			2,678			7,568			7,528
Cooling degree days (Oahu)		1,566			1,469			3,666			3,321
Average fuel cost per barrel	$	74.78		$	74.35		$	65.52		$	69.09

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, June 30, 2007 and September 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 September 30				Nine months ended September 30
(in thousands)	2007		2006		2007		2006
Interest and dividend income
Interest and fees on loans	$	61,817	$	59,417	$	182,191	$	171,893
Interest and dividends on investment and mortgage-related securities		26,497		28,368		85,090		89,315
		88,314		87,785		267,281		261,208
Interest expense
Interest on deposit liabilities		20,381		19,701		61,951		52,095
Interest on other borrowings		20,243		18,891		57,230		54,361
		40,624		38,592		119,181		106,456
Net interest income		47,690		49,193		148,100		154,752
Provision for loan losses		2,700		—		3,900		—
Net interest income after provision for loan losses		44,990		49,193		144,200		154,752
Noninterest income
Fees from other financial services		7,153		6,548		20,539		19,730
Fee income on deposit liabilities		6,583		4,653		19,095		13,218
Fee income on other financial products		1,977		1,739		5,845		6,308
Gain on sale of securities		—		1,735		—		1,735
Other income		1,480		878		4,733		3,699
		17,193		15,553		50,212		44,690
Noninterest expense
Compensation and employee benefits		16,173		17,398		52,733		52,711
Occupancy		5,418		4,942		15,707		13,895
Equipment		3,630		3,768		10,893		10,900
Services		6,385		5,600		22,638		13,441
Data processing		2,596		2,534		7,799		7,541
Other expense		9,456		9,926		27,972		27,202
		43,658		44,168		137,742		125,690
Income before income taxes		18,525		20,578		56,670		73,752
Income taxes		6,794		7,108		20,761		27,237
Net income	$	11,731	$	13,470	$	35,909	$	46,515
Net interest margin (%)		3.01		3.10		3.09		3.23

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, June 30, 2007 and September 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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