Hawaiian Electric weighing sale of American Savings Bank, Bloomberg reports

(Reuters) -Hawaiian Electric Industries is weighing the sale of its American Savings Bank FSB, Bloomberg News reported on Thursday, citing people familiar with the matter.

Hawaiian Electric is working with advisers to consider various options for the bank, including a full or partial sale, the report said, which added that no final decision has been made.

Hawaiian Electric in an emailed statement to Reuters said it does not comment on "rumors or speculation", while American Savings Bank did not immediately reply to a request for comment.

"We would value the bank in the range of $600-$800 million in these circumstances," Evercore ISI analyst Michael Lonegan said.

The impact of the wildfire on the bank has been limited and the Hawaii economy, supported by tourism, has remained strong, Lonegan added.

Shares of Hawaiian Electric were down 4.5% at $10.40 in afternoon trade.

Hawaiian Electric is a holding company with subsidiaries principally engaged in electric utility, banking, and nonregulated renewable infrastructure businesses operating in the State of Hawaii.

It is the parent company of American Savings Bank as well as the utility Hawaiian Electric which is facing multiple lawsuits over a wildfire that tore through the island of Maui last year, killing at least 100 people.

In November, the company said it was unable to submit its quarterly filing with U.S. securities regulators on time due to financial contributions it made towards victims of the wildfire.

In 2023, the bank's revenues amounted to about 11% of Hawaiian Electric's consolidated revenues. The bank had assets totaling about $9.7 billion as of Dec. 31.

(Reporting by Mrinalika Roy in Bengaluru; Editing by Krishna Chandra Eluri and Shailesh Kuber)