At the heart of embattled Hawaiian Electric Industries is an asset that stands to complicate the company’s already difficult road to recovery after the fatal wildfires in Maui: a bank that is the third-largest in the state, the Wall Street Journal reported. American Savings Bank, which Hawaiian Electric Industries bought in 1988, is a remnant of the holding company’s onetime expansion across industries and continents. Now, as Wall Street games out what the future of the broader company might look like, the bank might be its most valuable asset. Wells Fargo estimates American Savings Bank’s value at about $8 a share, equivalent now to more than 60% of the broader company’s current share price. Analysts say they believe the financial institution is walled off from legal liabilities its parent might face from class-action lawsuits but warn that a potential bankruptcy could make that outlook more uncertain. Maui County yesterday sued the utility company alleging its power lines caused the deadly wildfires on the island.
