Shareholders approve
plan for isle bank
to go private

Hawaii National Bancshares'
stock also will undergo a
1-for-200 reverse split

By Russ Lynch
Star-Bulletin

Hawaii National Bancshares Inc.shareholders have approved a plan to take the company private and letters are being sent to the stockholders telling them how to turn in their old shares for cash or new shares, the company said.

The proposal, announced in January, was accepted at yesterday's annual meeting of shareholders of the company, parent of Hawaii National Bank.

The arrangement starts with a reverse split, in which major shareholders will get one new share for every 200 shares they hold. Those with less than 200 shares, the majority of shareholders, will get $45 in cash for each share. The thinly traded stock last changed hands for $42.25 a share. Warren K.K. Luke, president and CEO, said he and his family, who own more than 60 percent of the stock, will not cash in their shares. Buying the rest of the stock will cost the company about $13 million.

One of Hawaii's smallest banks with assets of about $312 million and 14 branches, Hawaii National is the only bank in the state that operates under a federal charter. The parent company opted to go private to gain more operating flexibility and escape from public-company costs, such as sending information to shareholders.

Luke said banking operations are not affected and deposits will continue to be insured by the Federal Deposit Insurance Corp.