Hawaiian Electric Industries announced the sale of American Savings Bank to independent investors, allowing HEI to reduce their debt and increase funding for wildfire settlement contributions. The sale closed on Dec. 31. Get Hawaii's latest morning news delivered to your inbox, sign up for News 2 You The sale also enables American Savings Bank to continue their service for Hawaii customers. The independent, local bank created by the sale will be headquartered in Honolulu, maintaining the current management team and existing brand. ASB is Hawaii's third largest bank with $9.3 billion in assets. HEI sold 90.1% of the bank's stock at $405 million to independent investors, with no investor owning more than 9.9% of the stock. HEI also owns 9.9%. The sale comes after the HEI Board of Directors' review of strategic options regarding the bank from August, in line with their focus on ensuring a financially healthy enterprise. The board evaluated multiple potential paths forward before deciding to sell. Parties in lawsuits seeking damages for Maui fires reach $4B global settlement, court filings say "This transaction marks an important step in HEI's efforts to best position our companies to serve our customers and communities for the long term," said Scott Seu, president and CEO of HEI. "The sale allows HEI to enhance our focus on the utility as we work to help our state recover from the 2023 Maui wildfires and strengthen the financial and strategic position of our company." Ann Teranishi, president and CEO of the bank, shared similar sentiments. "This represents the best outcome for ASB, our customers, employees and the communities we have served since 1925 as we focus on the next 100 years," Teranishi said. "We are excited about this next chapter for ASB." Find more Hawaii, Oahu, Maui and Kauai news here As an owner of 9.9% of the bank's stock, HEI does not expect to be subject to regulation as a savings and loan holding company.