RE: First Hawaiian Bank
Honolulu, Honolulu County, Hawaii
Application for Consent to Purchase Certain Assets and Assume Certain Deposit Liabilities
ORDER AND BASIS FOR CORPORATION APPROVAL
Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act ("Act"), First Hawaiian Bank, Honolulu, Hawaii, ("FHB"), a state nonmember bank with total resources of $7,080,858,000 and total deposits of $5,524,725,000 as of December 31, 1999, has filed an application for the Corporation's consent to acquire certain assets and assume certain deposits of Standard Financial Corporation, Honolulu, Hawaii ("Standard"). All three offices of Standard will be closed as a result of this transaction. Notice of the proposed transaction, in a form approved by the Corporation, has been published pursuant to the Act.
The relevant geographic market area comprises the island of Oahu, all of which is located in Honolulu County. Standard's three offices are located in Honolulu County on the island of Oahu. FHB controls 28.1 percent and will control a total of 28.2 percent of deposits in the market following consummation of the proposed transaction. This would result in an increase in the Herfindahl-Hirschman Index (HHI) of six points, from 2,212 to 2,218. 209 offices of fifteen insured financial institutions operate in the relevant market. FHB will acquire an additional 0.1 percent of the deposits in the relevant market and the proposal will not have a significantly adverse competitive impact.
The U.S. Department of Justice concluded that the proposed transaction would not have a significantly adverse effect on competition and the State of Hawaii's Division of Financial Institutions intends to approve the proposal.
In connection with the application, the Corporation has also taken into consideration the financial and managerial resources and future prospects of the proponents and the resultant bank, and the convenience and needs of the community to be served. Based on an assessment of FHB's CRA Statement and other available information that has been considered, no inconsistencies with the purposes of the Community Reinvestment Act appear to exist. Having found favorably on all statutory factors and having considered all relevant material, it is the Corporation's judgement that the application should be and hereby is approved, subject to the following conditions:
1. That the proposed transaction may not be consummated before the fifteenth calendar day after the date of this Order;
2. That if the proposed transaction has not been effected within six months from the date of this Order, or, unless in the meantime, a request for an extension of time has been approved by the Corporation, the consent granted shall expire at the end of said six-month period; and
3. That until the proposed transaction becomes effective, the Corporation shall have the right to alter, suspend, or withdraw its approval should any interim development be deemed to warrant such action.
By Order of the Associate Director of the Division of Supervision, acting pursuant to delegated authority for the Board of Directors of the Corporation.
Dated at Washington, D.C., this day of March, 2000.
John M. Lane
Division of Supervision