First Hawaiian Bank: Understanding Its Classification and Banking Status

Introduction: When discussing financial institutions in the United States, First Hawaiian Bank often comes up as a significant player in the financial landscape of the state of Hawaii. However, the question of whether it qualifies as a U.S. bank can be a bit more complex. This article delves into the details of what makes First Hawaiian Bank a U.S. bank, its history, and its current ownership.

Defining a U.S. Bank

To understand whether First Hawaiian Bank is a U.S. bank, it's crucial to first define what constitutes a U.S. bank. For the purposes of this discussion, we will assume that a U.S. bank is one that is authorized to operate within the United States, has a resident customer base, and is subject to federal regulatory authorities.

The History of First Hawaiian Bank

Origins and Founding: First Hawaiian Bank traces its roots back to 1858 when it was established in Hawaii under the name Bishop Co. In 1859, it became known as First Hawaiian Bank, which has since grown to become a significant financial institution in the region.

Current Status: As of today, the bank operates in Hawaii and Guam. It is a regional bank headquartered in Honolulu, Hawaii, with operations extending to the Northern Mariana Islands, including Guam and Saipan. This makes First Hawaiian Bank an integral part of the U.S. financial system, even though its headquarters are outside the contiguous U.S.

Legal and Regulatory Framework

First Hawaiian Bank is registered in the State of Hawaii and is subject to rigorous legal and regulatory oversight. The bank is a Domestic Profit Corporation, having been registered on February 4, 1974. It continues to operate actively within the state.

The bank is also a member of the Federal Deposit Insurance Corporation (FDIC), which insures deposits up to a certain amount. This membership ensures that customers have access to FDIC-insured services, providing an additional layer of security for financial transactions.

Ownership and Corporate Structure

In terms of ownership, First Hawaiian Bank is currently owned by BanWest Corp, a 80% stake. BanWest Corp is a subsidiary of BNP Paribas, a major French banking group. Despite this foreign ownership, the bank remains an integral part of the U.S. financial system.

Conclusion

In conclusion, First Hawaiian Bank is unequivocally a U.S. bank, both in terms of its legal status and its operational presence. It has a history that spans over a century and a half and is deeply entrenched in the financial fabric of the state of Hawaii and its territories. Its membership in the FDIC and legal registration in the U.S. further cement its status as a reputable and reliable financial institution within the United States.

Frequently Asked Questions (FAQs)

Is First Hawaiian Bank a U.S. bank?

Yes, First Hawaiian Bank is a U.S. bank. It has legal rights to operate in the United States and is subject to U.S. banking regulations.

Why is it called a U.S. bank?

First Hawaiian Bank is considered a U.S. bank because it operates in states within the United States, is registered as a Domestic Profit Corporation in Hawaii, and is a member of the FDIC.

What is its current ownership structure?

First Hawaiian Bank is currently 80% owned by BanWest Corp, a subsidiary of the French banking group BNP Paribas.