American Savings Bank in Honolulu announced Wednesday that its parent company, Hawaiian Electric Industries, is planning to spin off the bank.

Hawaiian Electric, which has owned American Savings since 1988, approved a plan that would allow the bank to be spun off as a publicly traded company. The spinoff is part of a larger agreement announced separately by HEI, the state's largest power provider, to sell itself to NextEra Energy, a renewable energy company based in Juno Beach, Fla.

That transaction was valued at approximately $4.3 billion.

"Our ability to establish American Savings Bank as a new, independent public company reflects the strength of the bank's business, its strong market position and its talented team of employees," Connie Lau, chairman at American Savings, said in a press release. "This plan also enables HEI shareholders to participate in the upside potential of American Savings Bank following the spinoff."

The spinoff is contingent on closing of the acquisition; it is expected to close in late 2015. It is not expected affect bank operations.

American Savings was named a "Best Bank to Work For" by American Banker in 2013 and 2014.

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