Connect with us

Hawaii

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

Published

on

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.”

Adobe Stock

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.

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement

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.



Source link

Hawaii

Shark attacks in Hawaii spike in October, and scientists think they know why

Published

on

Shark attacks in Hawaii spike in October, and scientists think they know why


“Sharktober” — the spike in shark bite incidents off the west coast of North America during the fall — is real, and it seems to happen in Hawaii when tiger sharks give birth in the waters surrounding the islands, new research suggests.

Carl Meyer, a marine biologist at the University of Hawai’i at Manoa’s Hawaii Institute of Marine Biology, analyzed 30 years’ worth of Hawaii shark bite data, from1995 to 2024, and found that tiger sharks (Galeocerdo cuvier) accounted for 47% of the 165 unprovoked bites recorded in the area during that period. Of the others, 33% were by unidentified species and 16% were attributed to requiem sharks (Carcharhinus spp.)



Source link

Continue Reading

Hawaii

Puna man charged in attempted distribution of 10 pounds of meth | Honolulu Star-Advertiser

Published

on

Puna man charged in attempted distribution of 10 pounds of meth | Honolulu Star-Advertiser


COURTESY HAWAII POLICE

Jas Dewitt McQuade Cox

Advertisement
Advertisement

A 32-year-old Puna man has been arrested and charged following the delivery of a parcel, which Hawaii island authorities said originally contained over 10 pounds of a crystal-like substance that tested presumptive positive for methamphetamine.

Big Island police vice officers arrested Jas Dewitt McQuade Cox at a Hawaiian Paradise Park residence on Tuesday evening, according to Hawaii County Prosecutor Kelden Waltjen.

Police said officers later obtained subsequent search warrants and recovered, a black Radical Arms model RF-15 multi-caliber rifle with a black cylindrical silencer and two magazines, a black-and-silver 9mm semiautomatic, an unserialized pistol (ghost gun), 9mm and .308 caliber ammunition, a glass smoking pipe and two zip packets and contents that tested presumptive positive for methamphetamine, plus an operable digital scale.

Cox is charged with two counts each of attempted first-degree promotion of a dangerous drug and third-degree promotion of a dangerous drug, two counts of prohibited ownership or possession of a firearm, possession of a ghost gun and silencer, and two counts of prohibited possession of ammunition.

The most serious offense, attempted first-degree promotion of a dangerous drug, is a Class A felony offense that carries a maximum penalty of 20 years in prison.

Advertisement

Cox made his initial appearance in Hilo District Court on Friday. His request for a bail reduction was denied, and his bail was maintained at $360,000. He was ordered to appear for a preliminary hearing on Tuesday. Cox remained in custody at Hawaii Community Correctional Center.


Advertisement



Source link

Continue Reading

Hawaii

Hawaii could see new holiday and two days of observance | Honolulu Star-Advertiser

Published

on

Hawaii could see new holiday and two days of observance | Honolulu Star-Advertiser




Source link

Advertisement
Continue Reading

Trending