Eugene Tanner | PBN
Hawaiian Electric Industries’ stock price has fallen 39.24% this past month, after the filing of several lawsuits that allege that HEI; Hawaiian Electric Co., Inc., Maui Electric Co., Limited; and Hawaii Electric Light Co., Inc. are responsible for the Maui wildfires that began Aug. 8.
Some readers have been asking Pacific Business News about how American Savings Bank – a subsidiary of HEI and part of the same family of companies is faring amid the legal action.
“ASB customer deposits are safe,” according to a recent announcement from bank officials. “There is no risk to customer deposits as a result of legal claims related to the fires.”
American Savings Bank is insured by the Federal Deposit Insurance Corporation, and all customer deposits are automatically insured up to at least $250,000 per deposit or, per ownership category, according to the website for the FDIC. Seventy-nine percent of the bank’s deposits are FDIC-insured and 7% are fully collateralized. The financial institution has 273% liquidity coverage for uninsured deposits, and has more than $3.1 billion of secured borrowing capacity at the Federal Home Loan Bank and Federal Reserve, according to the announcement from ASB.
“ASB has served the residents and businesses of Hawaii for nearly 100 years. We are heartbroken for our community but committed to use our strong liquidity and capital position to help Maui rebuild,” Ann Teranishi, president and CEO of American Savings Bank, told PBN in an email. “We are here to support our community and work with borrowers trough this challenging time and beyond.”
Additionally, the stock prices of other publicly-traded banks in Hawaii have fallen this past month, with Bank of Hawaii down 10.91%, First Hawaiian Bank down 8.55% and Central Pacific Bank down 5.99%.