Independent investors acquire non-controlling interests in American Savings Bank

Independent investors have acquired non-controlling interests in American Savings Bank in separate transactions from Hawaiian Electric Industries Inc., the bank announced today. Among other things, HEI said the sale will give it flexibility in making its Maui wildfire settlement contributions.

ASB’s executive team and independent directors are included among the investors. HEI retained a 9.9% non-controlling interest in ASB’s common stock, allowing the company to continue to participate in the bank’s future growth. No investor holds greater than 9.9% of the common stock of ASB. The sale of common stock closed today.

ASB will continue to operate independently under its existing name and brand. There will be no changes to its branches or employees. The current executive leadership team will remain in place, with Ann Teranishi continuing to serve as president and chief executive officer.

As Hawaiʻi’s third largest bank with $9.3 billion in total assets, ASB will continue providing its full range of banking and financial services to the Hawaiʻi community, as it has since 1925. Customers can continue to bank as usual through ASB’s existing branch and ATM network, as well as its online and mobile banking services.

“This marks an exciting new milestone in ASB’s 100-year history,” said Teranishi, president and chief executive officer of ASB. “Our new shareholders recognize and value our deep roots in the community, dedication to helping our loyal customer base achieve their financial goals, and enduring commitment to serving Hawaiʻi’s residents and businesses. Everything our customers, communities and teammates love about ASB will remain the same, and we expect this new ownership structure to provide us with greater flexibility and capacity to invest in our community.” 

A separate announcement from HEI highlighted the following:

• The sale simplifies HEI’s strategy and regulatory position, allowing HEI to focus on core utility business and regaining financial strength
• Enables American Savings Bank to continue strong performance and best-in-class service for Hawaii customers
• Bank to maintain its current local leadership team, branches and brand
• HEI to use proceeds to reduce debt, increasing flexibility for funding wildfire settlement contributions and key utility initiatives, while reducing equity needs

According to ASB, it has generated strong net income and profitability while continuing net interest margin expansion throughout 2024. As of the quarter ending Sept. 30, ASB maintained a strong capital position, excellent credit quality, lending capacity and ample liquidity.

“We are pleased to welcome our new shareholders whose investment reflects their confidence in ASB’s ability and commitment to continue serving Hawaiʻi,” said Richard Dahl, chair of the ASB board of directors. “We look forward to this new chapter as we drive toward delivering exceptional value for all our stakeholders.”

Davis Polk & Wardwell LLP served as ASB’s legal adviser in connection with the transactions.