Hawaii
Central Pacific's deal talks for American Savings in Hawaii stall
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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.
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
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
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.
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
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.
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
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
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.
One of the biggest transactions of the year was announced this month.
Winter Haven, Florida-based
Three convicted sex offenders were arrested on Hawaii Island last week for allegedly failing to comply with sex offender registry requirements.
Multiple law-enforcement agencies conducted checks in Kona on registered sex offenders who had been identified as potentially out of compliance with the state’s Sex Offender Registry laws, according the Department of the Attorney General.
As a result of the three-day operation, several individuals were brought back into compliance, and three West Hawaii men were arrested for allegedly failing to comply with the requirements.
The three men who were arrested are Joseph Debus, 56, of Kailua-Kona, Garth Coleman, 53, of Holualoa and Alexsandr Skelcey, 34, of Kailua-Kona.
Debus was convicted of second-degree sex assault in Hawaii in 1993 and sentenced to five years probation with a year in jail. Coleman was sentenced to 20 years in prison for first-degree assault in 2000 after a jury trial in Hawaii. And Skelcey was convicted in Michigan in 2012 of assault with intent to commit sex assault.
“Sex offender registration requirements exist to protect our communities and ensure law enforcement knows where convicted offenders are living,” Tom Alipio, chief of the AG department’s Investigations Division, said in a press release. “Compliance operations like this send a clear message that we will actively monitor the registry, investigate violations and work closely with our law enforcement partners to hold offenders accountable when they fail to meet their legal obligations.”
HPD Chief Reed Mahuna said, “Operations like this allow us to verify that offenders are maintaining strict compliance with registration laws and those who aren’t will be addressed immediately. We will continue to leverage these multi-agency partnerships to keep our island communities safe,”
Members of the public can look up publicly available offender information and subscribe to notifications at sexoffenders.ehawaii.gov/coveredoffender/.
Anyone with information regarding a registered sex offender who may be violating registration requirements is encouraged to contact the Department of the Attorney General’s Investigation Division at (808) 586-1240 or their local law enforcement.
A brush in North Kona, near the Ulu Wini Apartments, has closed a portion of Hina Lani Street, between Route 190 and Ane Keokalole Highway.
According to Hawai‘i Island police, the road is expected to be closed for the next three hours and motorists are advised to avoid the area.
Hawai‘i Fire Assistant Chief Chris Carvalho confirmed at least two engines, two brush trucks, Chopper 2 and a medic vehicle responded to the blaze that started in some bushes.
No evacuations or injuries have been reported at this time.
At 11:09 a.m., an AlertWest camera, installed by Hawaiian Electric in wildfire-prone areas, showed smoke billowing above the Keahuolu Courthouse. As of 12:06 p.m., that smoke appears to have dissipated.
This is a developing story. More information will be provided as it becomes available.
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