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Central Pacific's deal talks for American Savings in Hawaii stall

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Central Pacific's deal talks for American Savings in Hawaii stall


The CEO of Central Pacific Bancorp in Honolulu said the bank recorded $3.1 million in pretax expenses “related to our evaluation and assessment of a strategic opportunity.”

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Central Pacific Bancorp in Honolulu, reportedly in talks this year to buy Hawaiian Electric’s American Savings Bank, said deal discussions are now on ice.

“While the parties are no longer currently engaged in discussions, we remain interested in the opportunity under the right terms and conditions,” Central Pacific Chairman and CEO Arnold Martines said Wednesday during the $7.4 billion-asset bank’s third quarter earnings call.

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He said Central Pacific recorded $3.1 million in pretax expenses “related to our evaluation and assessment of a strategic opportunity.”

He did not name American Savings. When asked by an analyst for more detail, Martines said, “At this point, we cannot comment on this further. We just can’t comment further about it.”

Citing unnamed sources, Bloomberg in September reported that Central Pacific was in discussions with multiple alternative asset managers to help buy the $9.3 billion-asset American Savings from Hawaiian Electric, the utility under scrutiny for its role in the August 2023 Lahaina wildfires that devastated a town on the island of Maui and killed more than 100 people.

Central Pacific reported third-quarter net income of $13.3 million, or 49 cents per share. Those results compared with net income of $13.1 million, or 49 cents, a year earlier.

Excluding the expense hit related to the deal talks, Central Pacific said its adjusted net income was $15.7 million, or 58 cents per share.

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Earlier this year, Bloomberg reported that Hawaiian Electric was looking to sell American Savings to create a cash buffer against dozens of lawsuits across state and federal courts. Many of the complaints accused the utility of sparking the blazes that ultimately caused more than $5 billion of property damage.

After that report, Evercore ISI analyst Michael Lonegan noted that the bank was in a strong financial position and had suffered minimal direct impact from the fires. “We would value the bank in the range of $600-$800 million in these circumstances,” Lonegan said.

American Savings, also based in Honolulu, on Wednesday reported third-quarter net income of $18.8 million, up from $11.4 million a year earlier. As a unit of Hawaiian Electric, it does not hold an earnings call.

“We remain well-positioned to support our customers and community for the long term, with a strong capital and liquidity position, strong credit quality, and ample lending capacity,” Ann Teranishi, president and CEO of American Savings, said in the bank’s earnings release.

Hawaiian Electric is scheduled to report earnings and hold a call with analysts on Nov. 8.

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Earlier this month, authorities culminated an investigation with a report blaming the Lahaina fire on Hawaiian Electric. The report from the Maui Fire Department and the Federal Bureau of Alcohol Tobacco, Firearms and Explosives said the disaster was started from a blaze caused by broken power lines.

“We deeply regret that our operations contributed to the fire. … We have looked closely at our protocols and actions that day and have made many changes in our operations and resilience strategies to ensure we fulfill our commitment to keep the public safe, especially in extreme weather events, which are becoming more frequent and severe,” Hawaiian Electric said in a statement.

American Savings is not the only Hawaiian bank on the potential sale block. The $17.4 billion-asset Hope Bancorp in Los Angeles agreed in April to an all-stock deal valued at $78.6 million to buy Territorial Bancorp in Honolulu. Hope said its offer priced Territorial at $8.82 per share and that it expected to close the transaction by Dec. 31. 

The seller’s shareholders are slated to vote on the pending sale to Hope on Nov. 6. Approval is hardly a sure thing, however, given there is a competing offer on the table. An investor group led by Blue Hill Advisors and former Bank of Hawaii CEO Allan Landon made a competing offer in August. Its initial cash bid valued Territorial at $12 per share. It has since upped that to $12.50 per share. 

More than 100 banks announced plans to sell in 2024. That put the industry ahead of last year’s total of 98 deals, according to updated data from S&P Global Market Intelligence.

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One of the biggest transactions of the year was announced this month. Atlantic Union Bankshares in Richmond, Virginia, said it would acquire Sandy Spring Bancorp in Olney, Maryland, for $1.6 billion of stock. It marked the third-largest bank acquisition announced this year by deal value.

Winter Haven, Florida-based SouthState Corp.’s May announcement that it would pay $2 billion in stock to acquire Independent Bank Group in McKinney, Texas, was the largest bank deal to date in 2024. Kansas City-based UMB Financial’s April plan to purchase Heartland Financial USA in Denver in an all-stock transaction valued at just under $2 billion was second.



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Hawaii Police Commission picks Reed Mahuna as next chief | Honolulu Star-Advertiser

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Hawaii Police Commission picks Reed Mahuna as next chief | Honolulu Star-Advertiser


COURTESY HAWAII POLICE DEPARTMENT

Deputy Police Chief Reed Mahuna.

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The Hawaii County Police Commission has chosen interim Police Chief Reed Mahuna as its next police chief, the Mayor’s Office announced today.

The nearly 28-year veteran of the Hawaii Police Department has been serving as interim police chief since September.

He has held various positions, including deputy chief, major in technical services, Area I Operations major and Area I and II Criminal Investigation Division captain, the Mayor’s office news release said.

Born and raised on Hawaii island, Mahuna is the son of retired Police Chief Lawrence Mahuna, who served as the county’s top cop from 2002 through 2008.

Reed Mahuna received a bachelor’s degree in criminology and criminal justice from Lindenwood University.

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The commission selected him after interviewing, in person, eight finalists in open session at the West Hawaii Civic Center in Kailua-Kona.

“I want to thank the Police Commission members for following a diligent and thoughtful process as they selected our next Chief of Police,” Mayor Kimo Alameda said in a written statement. “We look forward to continue working in partnership with law enforcement and our community to build a safer, stronger Hawaii Island for everyone.”

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The commission received 27 applications for the position that met the minimum qualifications. The candidates were asked to complete a questionnaire as part of the vetting process, and commission members individually scored their answers.

Of the 22 candidates who responded to the questionnaire, the commission invited 11, based on their scores, to move forward to the interview round. Eight responded by the Jan. 20 deadline and were interviewed this week.

Mahuna replaces Ben Moszkowicz in the permanent position. In June, commissioners rejected Moszkowicz’s attempt to withdraw his resignation, which he had submitted after he was prematurely and publicly selected by Honolulu Mayor Rick Blangiardi to be interim police chief for the Honolulu Police Department — an offer Blangiardi wasn’t authorized to make. Moszkowicz, a former Honolulu officer, had been Big Island chief since January 2023.


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Hawaii lawmakers press teacher education leaders over licensing delays – West Hawaii Today

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Hawaii lawmakers press teacher education leaders over licensing delays – West Hawaii Today






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Coastal Flood Statement In Effect For All Hawaiian Islands

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(BIVN) – The National Weather Service in Honolulu has issued a Coastal Hazard Message for the Hawaiian Islands, warning of isolated minor coastal flooding in the coming days. 

The Coastal Flood Statement says impacts include “flooding of beaches that are normally dry, minor coastal erosion, and saltwater inundation of low-lying roads, docks, boat ramps, and other coastal infrastructure,” in vulnerable low-lying coastal areas on all islands. 

The National Weather Service explained the reason for the coastal flooding in a Thursday statement:

Two significant northwest swells are expected to impact the state over the next few days. The first moderate to large, long period northwest swell will peak overnight tonight into early morning Friday. The second overlapping, larger, long period northwest swell will build in on Friday and peak late Friday into Saturday before subsiding through the rest of the weekend. The first swell will produce High Surf Advisory (HSA) conditions tonight for north and west facing shores of Niʻihau, Kauai and Oʻahu. The peak of the second will push surf height above warning levels from late Friday through Saturday for the same northwest islands, expect the HSA to expand in coverage to the islands of Molokai, Maui and west facing shores of the Big Island by Friday. A combination of large surf and higher than predicted water levels will lead to flooding of beaches that typically remain dry, especially at and around the peak daily tide.

The minor flooding will occur at and around the daily peak tides, and will be possible through the overnight and early morning hours of Friday, through Monday. 

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