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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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Missing Kapolei man found in Waipio, attorney says

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Missing Kapolei man found in Waipio, attorney says


HONOLULU (KHON2) — Around 4 p.m. on Friday, Nov. 7, Honolulu Police announced 55-year-old Jonnaven Monalim was missing, and was last seen on Wednesday night, Nov. 5, leaving his home in Kapolei.

But just seven hours after they announced he was missing, HPD was investigating a body that was found off a dirt road in Waipahu (near the Waipio Soccer Complex).

Police said officers had located the body of a man with apparent gunshot wounds.

Michael Green, a long-time family attorney for Monalim, told KHON2 that fingerprints taken from the scene where the body was found confirmed it was him.

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“They took fingerprints of the body, and they’ve identified it as Jonnaven,” attorney Michael Green said.

“When I hear about bodies being found where they’re doing fingerprint identification, instead of photograph or in-person identification, it’s a rage issue or a payback issue,” explained Green.

Green says the family was not asked to identify Monalim in person or with a photo.

“When they decide not to photograph the face, for identification it shows rage or payback, and I’m not saying who they’re paying back for, and I’m not saying what people were raged about – whether it’s a money debt or something else, or I pay you back for something they think you did in the past – I can’t answer that, but it’s not the first time I’ve seen fingerprint identification where they could not take pictures of the face,” Green said.

On Thursday, Nov. 6, there was heavy police presence in the Pearl City industrial area where Monalim’s girlfriend told Green that Monalim’s hearing aid was found with a bullet casing and a pool of blood.

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Monalim has a criminal record dating back to the 1980s. He was the key witness in the high-profile 2004 Pali golf course shooting trial after he wore an FBI wire that secretly recorded a conversation. That recording ultimately led to his cousin Rodney Joseph Jr. and Ethan “Malu” Motta to being sentenced to life in prison without parole.

Green said Monalim had disagreements with other individuals over the years.

“He was a street guy, and he would have been smart enough not to meet a particular person without protecting himself,” Green said. “My guy was not the kind of guy that would just walk around and meet people in the middle of the night; he had to trust the person and feel that he was safe.”

“He never would have gone to meet anybody if he had the slightest concern about his safety, but he certainly, if it was a one-on-one, he trusted the person with his life and he made a mistake apparently,” he added.

Green believes police finding the body in the middle of nowhere means one thing.

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“They [police] knew where they were going, so somebody gave up somebody,” he added.

Police have not confirmed any arrests and are deferring identification of the body to the medical examiner. Police will also not say if Monalim’s missing persons case is still active.



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With new ranch, mysterious Hawaii landowner now has 15,000 acres

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With new ranch, mysterious Hawaii landowner now has 15,000 acres


On the island of Hawaii, a relatively unknown buyer is purchasing large portions of land, rapidly becoming one of Hawaii’s largest landowners, while also stirring controversy with a Burning Man-inspired annual festival he is trying to cultivate.

Since 2021, Pennsylvania native Andrew Tepper has bought over 14,000 acres in Papaikou near Hilo, according to public records, under his company Teppy Mountain LLC. Tepper held a festival, called Falls on Fire, on his agriculturally zoned property in 2023 and 2024. The events were unpermitted, sparking backlash among his neighbors and government agencies, who have hit him with violations. 

Entrance to Indian Tree Road in Papaikou on the island of Hawaii.

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Screenshot via Google Street View

Hawaii County spokesperson Tom Callis told SFGATE that Teppy Mountain has been fined $34,000 so far. “As this is a private event that involves many people that exceeds the customary use of the agricultural property, it requires a Special Permit,” Callis said.

To comply, Tepper submitted a Special Use Permit with the Windward Planning Commission in September 2024 for the annual event, which calls for a four-day-long festival with overnight camping and commercial vehicle storage on approximately 14.7 acres of the Papaikou land, with a maximum attendance of 500. As at Burning Man, a burning ceremony of an effigy is lit on fire to close the event.

“Hawaiian culture and Burning Man culture share so many principals… decommodification, communal effort, gifting, participation, ‘leave no trace’ – those are all things I keep noticing in Hawaiian culture, and they are stated principles of Burning Man culture. Falls on Fire is such a wonderful blending of those cultures,” Tepper told SFGATE in an email.

“If any readers are Burning Man participants, come visit my camp, Habitat for Insanity, and I will serve you the fanciest, most delicious shave ice on the playa,” he continued.

Tepper is now awaiting a contested case hearing on Nov. 13, 2025, before a decision is made about whether to approve or deny the permit. But until the permit is approved, the event is not authorized to be held.

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The Papaikou lands, outlined in the map, amount to over 14,000 acres near the town of Hilo, Hawaii.

The Papaikou lands, outlined in the map, amount to over 14,000 acres near the town of Hilo, Hawaii.

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A private gathering

Despite repeated warnings by the Hawaii Planning Department not to hold the event, it took place last year from Nov. 8 to 11, with over 200 attendees. 

No event has been publicized this year, but details were sent out to an email listserv from an email address associated with Falls on Fire stating that an event would take place Nov. 7 to 9, 2025, referring to it as a “private gathering” with no charge and advising participants to “keep it off all public pages” so it can avoid a “$500 per day fine.”

SFGATE obtained a copy of the email, dated Oct. 8, and it links to a new website with private access and a “bible for everything FoF” that details rules, fire safety, sound policy, theme camps and volunteer information. Tepper confirmed that it was from an email address that he and other organizers are using, but also added that “it is not the email that invitations were sent from.”

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Tepper also told SFGATE that he is “having a smaller private gathering while the permit is pending. I hope to have the permit next year, and if I do, I will again welcome members of the public to experience this incredible property.” 

Hawaii County would not comment on whether it is aware of another event happening this year, but did tell SFGATE that “the Planning Department will issue another notice” if an unpermitted event is held. 

A waterfall in Papaikou on the island of Hawaii, Oct. 14, 2018.

A waterfall in Papaikou on the island of Hawaii, Oct. 14, 2018.

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Asked whether or not it is something that would get shut down, Hawaii County Police Department told SFGATE it “does not necessarily enforce permit violations, however if we received noise and/or other complaints then police would respond.”

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Hawaii County said more or less the same: “Reports of illegal or unsafe activities can be made to the Police or Fire departments, and they will respond based on the complaint.”

More land acquisitions

Earlier this year, Tepper purchased additional properties in the towns of Keaau and North Kona, according to public records. Then in October, he made another large acquisition when he bought the 792-acre Kupaianaha Ranch for $10.59 million. The ranch, near Hilo Forest Reserve, has waterfalls, orchards, pastureland and a two-story, 8,542-square-foot log cabin.

Tepper told SFGATE he purchased the property because he likes agricultural land. “The new property has a large lychee orchard that had been neglected, and I’ve already started tending the trees. I’m hoping that by next year we’ll be producing a small crop, and then be back to full production the following year or so,” Tepper told SFGATE in an email.

The purchase of Kupaianaha Ranch brings his total landholdings to over 15,000 acres on Hawaii Island. By comparison, Hilo, the largest town on the island, is approximately 35,000 acres, while the second-largest, Kailua-Kona, is 8,832 acres.

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Andrew Tepper in a 1995 article in the Press Enterprise in Pennsylvania.

Andrew Tepper in a 1995 article in the Press Enterprise in Pennsylvania.

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It’s a sizable sum that puts Tepper among the top wealthy Hawaii landowners, somewhere between Larry Ellison’s 87,810 acres on Lanai and Mark Zuckerberg’s 2,300 acres on Kauai. Others, like Oprah Winfrey, Michael Dell and Jeff Bezos, fall below.

Tepper is the founder and president of game development studio eGenesis, which started in 1998. He is best known for his work on “A Tale in the Desert,” a massively multiplayer online role-playing game, launching it in 2003. Then in 2013, eGenesis created Dragon’s Tale, an MMORPG casino that uses cryptocurrency. Tepper graduated from Carnegie Mellon University and ran a software company before starting eGenesis.

Aside from the Falls on Fire festival, it’s unclear what Tepper plans to do with the combined 15,000 acres, but he has a history of purchasing large properties in other states, including the 1,143-acre Dream Mountain Ranch in West Virginia in 2018. He opened it to guided trophy deer and elk hunts the following year. 

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Editor’s note: SFGATE recognizes the importance of diacritical marks in the Hawaiian language. We are unable to use them due to the limitations of our publishing platform.

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Group of robbery suspects on the loose after attacking 18-year-old in Pearl City

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Group of robbery suspects on the loose after attacking 18-year-old in Pearl City


PEARL CITY (HawaiiNewsNow) – A group of robbery suspects is on the loose Friday after an 18-year-old was attacked Thursday night in Pearl City.

Honolulu police said it happened at about 7 p.m.

Police say three men assaulted the teen and demanded his personal property.

One of the suspects allegedly had a gun. All three suspects fled the area on foot with the victim’s personal property.

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No other information about the robbers has been made available.



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