BankAmerica Has Deal to Acquire Honfed, Biggest Hawaiian Thrift
BankAmerica Corp. said Friday that it completed a definitive agreement to acquire H.F. Holdings Inc. and its subsidiary, Honfed Bank of Honolulu.
Terms were not disclosed. BankAmerica said only that it agreed to buy all outstanding preferred shares of privately held H.F. Holdings and Honfed Bank and expects to call for redemption of Honfed Bank's subordinated debentures.
With $3 billion in assets, Honfed is the largest thrift in Hawaii. The acquisition would bring BankAmerica 29 branches in the 50th state - the 10th state in its 1,300-branch retail empire in the West.
Honfed is the product of a turnaround starting in late 1986 with a capital infusion by a partnership led by former Treasury Secretary William Simon and a longtime associate, Gerald Parsky. They installed Gerald Czarnecki, formerly of Continental Bank Corp., as chairman and chief executive.
Honfed increased its first-half income this year by 46%, to $17.7 million.
The deal has been approved by both companies' boards and awaits regulatory approvals. BankAmerica has the right to terminate the agreement during a 30-day due diligence period. It expects the deal to close next year.