Territorial completes first share buyback

Territorial Bancorp Inc., which went public in July 2009 at $10, said Thursday it has completed its first repurchase program by buying 733,988 shares of its common stock at an average price of $19.61 a share.

The parent of Territorial Savings Bank, the state’s fifth largest, said any future decision to adopt one or more additional stock repurchase programs would be subject to general market conditions, the stock’s trading price, alternative uses for capital and the company’s financial performance.

Territorial reported earlier this month that its second-quarter earnings rose 4.6 percent to $3.4 million from $3.2 million a year ago.

The bank’s stock fell 28 cents to $19.30 on Thursday.

American Savings opens new Kihei branch

American Savings Bank’s new Kihei branch celebrates its grand opening at 7:40 this morning with local dignitaries, key customers and members of the bank’s management team.

A maile lei-cutting ceremony and traditional Hawaiian blessing by Kahu Robert Nelson was to mark the official grand opening.

Located in Building 4 of the Piilani Village Shopping center at 255 Piikea Ave., the branch brings to seven the number of full-service branches on Maui. The bank also has more than 15 ATM locations on the island.

AIG repays $2.15 billion to bailout program

WASHINGTON » American International Group Inc. has paid the federal government $2.15 billion this week after selling off a life insurance subsidiary, trimming its financial bailout balance to roughly $51 billion.

The Treasury Department said Thursday that the repayment comes from AIG’s sale of its Nan Shan Life Insurance Co. in Taiwan. AIG has now paid back $11.4 billion of the $68 billion in bailout funds it received from the government at the height of the 2008 financial crisis.

The government sold 200 million AIG shares in May. That cut the government’s stake in the company to 77 percent from 92 percent. Treasury officials have said they expect to recoup the full amount of the bailout.

Oil drops on global economic worries

NEW YORK » Oil fell sharply Thursday along with a broad sell-off in stocks triggered by worries about the global economy.

Higher prices at a time when more people are out of work means Americans could drive even less than they do now.

Gasoline, on average, cost $3.59 a gallon Thursday. That’s down 10 percent from a 2011 high of $3.98 on May 5. Gasoline could slip to $3.25 between mid-September and mid-October if oil stays at current levels, says Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service.

(In Hawaii the average price of gas was $4.11, the highest in the nation.)

Pump prices should fall for other reasons as well. Motorists tend to drive less in the fall once vacation season ends. Refineries also begin making winter versions of gasoline, which are less expensive because they contain less expensive additives than summer blends.

"All of that adds up to weaker prices in September," Kloza said.

Benchmark West Texas Intermediate crude for September delivery fell $5.20, or 5.9 percent, to finish at $82.38 per barrel on the New York Mercantile Exchange.

Gap’s profits down 19% in second quarter

NEW YORK » Deep discounting and escalating production costs pushed Gap Inc.’s second-quarter profit down 19 percent, raising concern about how the nation’s largest clothing chain will fare during the critical fall and holiday shopping seasons.

Gap, which operates Gap, Old Navy and Banana Republic chains, posted much weaker results Thursday than many of its peers. Several major merchants reported profit increases this week and said they’ve been able to push through price hikes to shoppers as they try to offset their higher costs for labor and raw materials.

The San Francisco-based retailer, which has been struggling for several years, has been particularly hard hit by the down economy. Its Gap chain, in particular, has posted an annual sales drop in the last six years at stores in North America open at least a year, a key measure of a retailer’s health.

The company earned $189 million, or 35 cents a share, in the three months ended July 30. That compares with $234 million, or 36 cents a share, a year ago. Revenue rose 2 percent to $3.38 billion. Analysts had expected 33 cents per share on revenue of $3.39 billion in the quarter.

ON THE MOVE

Hawaiian Airlines has appointed Steven Borzilleri as managing director for Hawaii maintenance. He has more than 20 years of management experience in aviation maintenance and was previously a consultant providing his expertise in support of business development opportunities and aircraft certification for various aviation companies.

Hilton Worldwide has awarded Charlene Kauhane with the company’s Spirit of CARE Award. Kauhane is senior reservations manager of the Doubletree by Hilton Alana Waikiki Hotel, and she was chosen from 50,000 team members worldwide as the award winner.

Sheraton Keauhou Bay Resort & Spa on Hawaii has named Emily Blasco as leisure sales manager. She will manage domestic and international non-Asia wholesale accounts for leisure and group travel to the 22-acre, 519-room oceanfront resort. Blasco was previously working at Fairmont Orchid.