Hawaiian Electric Company, Inc. PFD K 4.65% (HAWLL) 10-Q 2008 Q2 Quarterly report

HEI Exhibit 99.1

August 4, 2008

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

HAWAIIAN ELECTRIC INDUSTRIES, INC. REPORTS SOLID SECOND QUARTER 2008 PERFORMANCE

HONOLULU — Hawaiian Electric Industries, Inc.(NYSE—HE) today reported consolidated net income for the second quarter of 2008 of $5.1 million, or $0.06 per share, compared to $17.5 million, or $0.21 per share for the second quarter of 2007. Second quarter 2008 results include $35.6 million ($0.42 cents per share) of previously-disclosed after-tax charges related to the successful strategic restructuring of its bank’s balance sheet in June.

“Excluding the effects of the bank balance sheet restructuring, net income would have been $40.7 million, or $0.48 per share for the second quarter of 2008,” said Constance H. Lau, HEI president and chief executive officer. “All areas of the company contributed to solid performance in the quarter,” said Lau. “Our utilities continued to regain financial strength from interim rate relief after several tough quarters last year. Excluding the balance sheet restructuring charges, the bank’s earnings and profitability improved quarter-over-quarter. Additionally, holding and other company losses were lower due to lower interest and general and administrative expenses,” noted Lau.

Hawaiian Electric Industries, Inc. News Release

August 4, 2008

Page 2

UTILITY RESULTS

Electric utility net income for the second quarter of 2008 was $27.4 million compared with $10.7 million for the same quarter in 2007. “We are seeing recovery from unusually low earnings a year ago when our utilities were awaiting rate increases to earn a return on reliability investments and recover higher operating costs,” said Lau.

At the same time, kilowatthour sales were down slightly compared with the same quarter of 2007 largely due to the effects of conservation and demand-side management programs more than offsetting the impact of mildly warmer temperatures. “Hawaii customers have been diligently seeking ways to conserve energy in response to the dramatic rise in the cost of fuel, which impacts the price of nearly all goods and services here in Hawaii,” said Lau.

Other operations and maintenance (O&M) expenses were flat quarter-over-quarter, as higher operations expenses for customer efficiency programs and operations reliability were slightly more than offset by lower maintenance expense resulting primarily from the lower scope of unit overhauls and timing of vegetation management expenses. “However, we expect higher O&M expense levels for the second half of 2008 due to planned increases in production and transmission and distribution maintenance work,” noted Lau.

The utility also recorded $1.1 million in higher quarter-over-quarter depreciation expenses due to 2007 plant additions.

Hawaiian Electric Industries, Inc. News Release

August 4, 2008

Page 3

BANK RESULTS

Bank net loss for the second quarter of 2008 was $18.1 million, compared to net income of $12.6 million for the same quarter last year. Results include after-tax charges of $35.6 million related to the balance sheet restructuring and the following other after-tax items: a $1.2 million previously-disclosed technology project write-off, a $2.6 million insurance recovery, and a $0.6 million gain on the sale of MasterCard stock.

“Bank operations were strong in the second quarter,” said Lau. “We are excited that the balance sheet restructuring, along with product enhancements and productivity initiatives, have successfully positioned the bank for greater profitability.”

Net interest income in the second quarter of 2008 was $52.6 million compared to $51.1 million in the second quarter of 2007. The impact of lower interest expense, primarily due to lower rates on deposits and borrowings and lower deposit balances, more than offset the decline in interest income, primarily due to lower yields on assets and lower investment balances. Net interest margin expanded to 3.39% in the second quarter of 2008, compared with 3.20% in the second quarter of 2007.

In the second quarters of 2008 and 2007, the bank recorded $1.2 million in provision for loan losses. “The overall credit quality of the bank’s loan portfolio remains good. However, we remain cautious and are actively monitoring our loan portfolios as there are signs that the local economy and real estate market are slowing,” added Lau.

Quarter-over-quarter bank noninterest income and noninterest expense were primarily impacted by the aforementioned balance sheet restructuring, technology project write-off, insurance recovery and gain on sale of MasterCard stock. Services expenses were lower by $3.7 million, primarily due to lower consulting and legal expenses.

Hawaiian Electric Industries, Inc. News Release

August 4, 2008

Page 4

HOLDING AND OTHER COMPANIES’ RESULTS

The holding and other companies’ net losses were $4.2 million in the second quarter of 2008 compared with $5.7 million in the second quarter of 2007. The quarter-over-quarter improvement was primarily due to lower interest and general and administrative expenses.

WEBCAST AND TELECONFERENCE

Hawaiian Electric Industries, Inc. will conduct a webcast and teleconference call to review its second quarter 2008 earnings on Tuesday, August 5, 2008, 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) 510-0710, passcode: 57495087 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 19, 2008, by dialing (888) 286-8010, passcode: 43538430.

Representing management will be Constance H. Lau, president and chief executive officer, Hawaiian Electric Industries, Inc. and chairman, Hawaiian Electric Company, Inc.; and Timothy K. Schools, president, American Savings Bank, F. S. B.

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

Hawaiian Electric Industries, Inc. News Release

August 4, 2008

Page 5

other financial services to consumers and businesses through American Savings Bank, F.S.B., the state’s third largest financial institution based on 2007 year-end asset size.

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, 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 June 30,						Six months ended June 30,						Twelve months ended June 30,
(in thousands, except per share amounts)	2008			2007			2008			2007			2008			2007
Revenues
Electric utility	$	688,121		$	492,712		$	1,312,010		$	940,390		$	2,477,934		$	2,016,257
Bank		85,950			107,526			191,794			211,986			405,303			417,791
Other		(16	)		525			(132	)		2,410			2,067			1,711
		774,055			600,763			1,503,672			1,154,786			2,885,304			2,435,759
Expenses
Electric utility		632,725			463,923			1,205,631			898,609			2,282,751			1,893,184
Bank		116,942			87,832			199,423			173,864			367,044			344,285
Other		2,786			3,699			6,270			8,463			13,279			14,924
		752,453			555,454			1,411,324			1,080,936			2,663,074			2,252,393
Operating income (loss)
Electric utility		55,396			28,789			106,379			41,781			195,183			123,073
Bank		(30,992	)		19,694			(7,629	)		38,122			38,259			73,506
Other		(2,802	)		(3,174	)		(6,402	)		(6,053	)		(11,212	)		(13,213	)
		21,602			45,309			92,348			73,850			222,230			183,366
Interest expense–other than on deposit liabilities and other bank borrowings		(18,186	)		(19,282	)		(37,435	)		(39,793	)		(76,198	)		(77,220	)
Allowance for borrowed funds used during construction		835			586			1,597			1,184			2,965			2,642
Preferred stock dividends of subsidiaries		(473	)		(473	)		(946	)		(946	)		(1,890	)		(1,890	)
Allowance for equity funds used during construction		2,105			1,202			4,006			2,434			6,791			5,646
Income before income taxes		5,883			27,342			59,570			36,729			153,898			112,544
Income taxes		747			9,793			20,467			12,416			54,329			39,791
Net income	$	5,136		$	17,549		$	39,103		$	24,313		$	99,569		$	72,753
Basic earnings per common share	$	0.06		$	0.21		$	0.47		$	0.30		$	1.20		$	0.89
Diluted earnings per common share	$	0.06		$	0.21		$	0.47		$	0.30		$	1.20		$	0.89
Dividends per common share	$	0.31		$	0.31		$	0.62		$	0.62		$	1.24		$	1.24
Weighted-average number of common shares outstanding		84,052			81,907			83,762			81,679			83,249			81,461
Adjusted weighted-average shares		84,155			82,124			83,822			81,906			83,283			81,644
Net income (loss) by segment
Electric utility	$	27,432		$	10,650		$	52,017		$	11,103		$	93,070		$	47,776
Bank		(18,093	)		12,582			(3,517	)		24,178			25,412			46,915
Other		(4,203	)		(5,683	)		(9,397	)		(10,968	)		(18,913	)		(21,938	)
Net income	$	5,136		$	17,549		$	39,103		$	24,313		$	99,569		$	72,753

This information should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2007 (included in HEI’s Form 8-K dated February 21, 2008) 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, 2008 and June 30, 2008 (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 June 30,						Six months ended June 30,
(in thousands)	2008			2007			2008			2007
Operating revenues	$	686,647		$	491,249		$	1,309,141		$	938,046
Operating expenses
Fuel oil		273,755			167,121			523,298			327,050
Purchased power		177,226			133,727			328,021			245,243
Other operation		59,422			53,643			115,001			100,836
Maintenance		23,990			29,869			47,603			57,205
Depreciation		35,401			34,272			70,835			68,539
Taxes, other than income taxes		62,371			44,903			119,857			87,450
Income taxes		17,094			6,492			32,472			10,998
		649,259			470,027			1,237,087			897,321
Operating income		37,388			21,222			72,054			40,725
Other income
Allowance for equity funds used during construction		2,105			1,202			4,006			2,434
Other, net		1,111			1,049			2,207			(5,149	)
		3,216			2,251			6,213			(2,715	)
Income before interest and other charges		40,604			23,473			78,267			38,010
Interest and other charges
Interest on long-term debt		11,810			11,390			23,534			22,886
Amortization of net bond premium and expense		639			646			1,270			1,192
Other interest charges		1,059			874			2,045			3,015
Allowance for borrowed funds used during construction		(835	)		(586	)		(1,597	)		(1,184	)
Preferred stock dividends of subsidiaries		229			229			458			458
		12,902			12,553			25,710			26,367
Income before preferred stock dividends of HECO		27,702			10,920			52,557			11,643
Preferred stock dividends of HECO		270			270			540			540
Net income for common stock	$	27,432		$	10,650		$	52,017		$	11,103
OTHER ELECTRIC UTILITY INFORMATION
Kilowatthour sales (millions)		2,476			2,501			4,885			4,905
Cooling degree days (Oahu)		1,295			1,255			2,249			2,100
Average fuel cost per barrel	$	104.78		$	62.74		$	99.29		$	60.43

This information should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2007 (included in HECO Exhibit 99.1 to HECO’s Form 8-K dated February 21, 2008) 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, 2008 and June 30, 2008 (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 June 30,					Six months ended June 30,
(in thousands)	2008			2007		2008			2007
Interest and dividend income
Interest and fees on loans	$	61,747		$	60,093	$	125,212		$	120,374
Interest and dividends on investment and mortgage-related securities		22,729			30,428		47,180			58,593
		84,476			90,521		172,392			178,967
Interest expense
Interest on deposit liabilities		15,619			20,832		33,839			41,570
Interest on other borrowings		16,265			18,581		35,414			36,987
		31,884			39,413		69,253			78,557
Net interest income		52,592			51,108		103,139			100,410
Provision for loan losses		1,155			1,200		2,055			1,200
Net interest income after provision for loan losses		51,437			49,908		101,084			99,210
Noninterest income
Fees from other financial services		5,413			6,885		12,236			13,386
Fee income on deposit liabilities		6,767			6,457		13,561			12,512
Fee income on other financial products		1,639			1,856		3,443			3,868
Loss on sale of securities		(18,323	)		—		(17,388	)		—
Other income		5,978			1,807		7,550			3,253
		1,474			17,005		19,402			33,019
Noninterest expense
Compensation and employee benefits		19,039			18,164		37,279			36,560
Occupancy		5,390			5,341		10,787			10,289
Equipment		3,221			3,785		6,335			7,263
Services		4,170			7,895		9,843			16,253
Data processing		2,609			2,646		5,225			5,203
Loss on early extinguishment of debt		39,843			—		39,843			—
Other expense		9,653			9,336		18,847			18,516
		83,925			47,167		128,159			94,084
Income (loss) before income taxes		(31,014	)		19,746		(7,673	)		38,145
Income taxes (benefits)		(12,921	)		7,164		(4,156	)		13,967
Net income (loss)	$	(18,093	)	$	12,582	$	(3,517	)	$	24,178
Net interest margin (%)		3.39			3.20		3.27			3.14

This information should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2007 (included in HEI Exhibit 13 to HEI’s Form 8-K dated February 21, 2008) 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, 2008 and June 30, 2008 (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