Hawaiian Electric Industries Inc. (NYSE: HE), the utility under scrutiny for its role in last year’s deadly Lahaina wildfire, is exploring options including a sale of American Savings Bank FSB, according to people familiar with the matter.
Hawaiian Electric is working with advisers to weigh various options for the 35-branch bank, including a full or partial sale, said the people, who asked to not be identified because the details are private. No final decision has been made and Hawaiian Electric could opt to hold onto the lender, the people said.
While it’s not clear how much the bank would fetch in a sale, it had about $486 million in average shareholder equity in 2023, according to Hawaiian Electric’s most recent annual report.
“Our objective is to ensure we remain strong and financially healthy throughout our companies – at HEI, American Savings Bank and Hawaiian Electric,” a representative for Hawaiian Electric said in a statement. “We continue to take prudent and measured actions to ensure our companies are well positioned to serve our customers and community for the long term.”
A representative for American Savings Bank didn’t immediately respond to a request for comment.
Hawaiian Electric has lost about 73 percent of its market value in the past year as investors fret that it will be held liable for the state’s deadliest wildfire. Hawaiian Electric has acknowledged that its equipment started a small fire on the edge of Lahaina the morning of the blaze, which killed 101 people, caused more than $5.5 billion in damages and wiped out the historic town.
The stress has raised questions about the fate of American Savings Bank, the state’s third-biggest bank and the only bank in the country owned by a utility. With about $9.7 billion of assets and $8.1 billion in deposits, American Savings Bank generated about 27 percent of Hawaiian Electric’s net income in 2023, according to its annual report.
