American Savings Bank Rallies Around Maui

In August 2023, fires spread across Maui, Hawaii, harming the region and its occupants and forcing many to evacuate. Following what’s now labeled one of the deadliest U.S. wildfires in more than a century, $9.6 billion-asset American Savings Bank (ASB) stepped up to ease its community’s pain.

Ann Teranishi, president and CEO of the Honolulu community bank, reiterated just how important it was to uphold American Savings Bank’s mission. “We were heartbroken by the devastation caused by the Maui wildfires and remain committed to using our strong capital position to support the families and businesses of Maui as they heal and rebuild in the aftermath of the fires,” she says.

Providing financial relief

After the fires, the community bank’s teams worked quickly to provide resources and support to affected customers, which included waiving ASB Maui ATM fees, establishing an emergency personal line of credit and providing 90-day forbearance and deferment for commercial and consumer loans.

Under the mortgage forbearance program, the accrued principal and interest was placed on the back end of the loan. During this time period, customers weren’t charged fees, penalties or interest beyond what they would have been charged had they continued to make all their mortgage loan payments on time and in full.

The forbearance has been critical to providing support for affected customers. “Following the fires, our teams quickly initiated a mortgage forbearance program for affected customers,” says Teranishi. “In alignment with our commitment to support the community, especially in times of need, we collaborated with Hawai’i Community Lending and other financial institutions statewide in a pledge to provide mortgage forbearances to eligible borrowers and encouraged other institutions to do the same.”

“Customers continue to express their gratitude for ASB’s proactive approach in reaching out and offering personalized assistance during this challenging time.”

—Ann Teranishi, American Savings Bank

CDFI support

In 2002, Hawai’i Community Lending (HCL)—a nonprofit community development financial institution (CDFI) certified by the U.S. Department of the Treasury—started as a mortgage broker under Hawaiian Community Assets. HCL was founded as a subsidiary nonprofit in 2014. According to its website, it “funds Hawaii’s affordable housing ecosystem, from home buyers to home builders to homeowners. Its mission is to build the capacity of low- and moderate-income communities to achieve and sustain economic self-sufficiency, with a particular focus on Native Hawaiians.”

Teranishi says the forbearance initiative has demonstrated the pivotal role that community banks can play in providing relief and support to communities, especially during the most challenging circumstances.

“American Savings Bank and Hawai’i Community Lending have a strong relationship,” says Teranishi. “We collaborated on various housing initiatives, including a $4.3 million investment in Native Hawaiian homeownership opportunities on Hawaiian homelands. With all the hardships that our Maui community has faced, we are glad to collaborate with Hawai’i Community Lending to offer this vital assistance.”  

As of Oct. 13, 2023, ASB has offered forbearances to more than 200 mortgage loan customers. Out of those customers, 84 have accepted, and 66 consumer loan customers have also received forbearances.

Working alongside the community

The community bank has taken steps beyond forbearances. According to Teranishi, “community” is at the core of everything ASB does. For example, immediately after the fires, ASB quickly provided critical resources to the Maui community by donating $100,000 to three nonprofits offering on-the-ground support. 

“We also worked with the Hawaii Bankers Association to collect donations at all ASB branches for the Maui Strong Fund and supported the Luna Strong campaign, which provides funds to replace sports equipment for Lahaina High School,” she says.

Activities are still taking place to provide support and relief for those affected by the Maui fires. American Savings Bank uses its website and social media to provide updates on relief efforts and resources, but its efforts can be best seen in person and at its local branches. 

Teranishi notes, “Our teams continue to work around the clock to grant mortgage forbearances and share resources through community fairs and events, along with personally calling customers to ensure that they receive the support they need.” 

Response from the bank’s customers and the community to the forbearance initiative has been positive, according to Teranishi. 

“Customers continue to express their gratitude for ASB’s proactive approach in reaching out and offering personalized assistance during this challenging time,” she says. “In addition, since every situation is different, we continue to encourage impacted customers to call our bankers for assistance.”

In sum, according to Teranishi, management at the bank is thankful for its more than 1,000 teammates across the state for continuing to go above and beyond to care for the bank’s customers, the community as a whole and for each other.