The state has officially begun negotiations over Kaiser Permanente Hawaii assuming control of three Maui County hospitals.

Kaiser was selected by the board of the Hawaii Health Systems Corp., parent company of Maui Memorial Medical Center, Kula Hospital and Lanai Community Hospital, to continue negotiations with the state. Hawaii’s largest health maintenance organization beat out Hawaii Pacific Health, parent company of Kapiolani Medical Center for Women & Children, Pali Momi Medical Center, Straub Clinic & Hospital and Wilcox Health on Kauai.

Gov. David Ige’s office announced Thursday that Doug Murdock, state comptroller and director of the Department of Accounting and General Services, will be lead negotiator for the state. The negotiating team will also include the governor’s deputy chief of staff, Laurel Johnston; Attorney General Doug Chin; Wesley Machida, director of finance; James Nishimoto, director of the Department of Human Resources Development; and HHSC and Maui Regional Healthcare System staff.

The Legislature authorized HHSC’s Maui region to transfer the operation of its facilities to a new entity to stem financial losses. The Maui Regional System Board will serve as the custodial caretaker of the properties and oversee performance of the terms and conditions of the lease agreement.

The state hopes to finalize an agreement for Kaiser to become the new operator of the Maui facilities by year’s end.

Hawaii State FCU’s earnings up 2.7 percent as loans surge

Hawaii State Federal Credit Union continued its loan growth in the third quarter to help boost earnings 2.7 percent from the year-earlier period.

The state’s second-largest credit union, which has more than 88,000 members and $1.39 billion in assets, said Thursday that loans rose to $645.7 million at the end of the third quarter from $511.8 million at the same point a year ago. During the quarter, Hawaii State FCU produced $38.2 million in loans, up 97 percent from $19.4 million during the third quarter of 2014.

The credit union serves state, city and county employees as well as employees of nonprofits and select businesses and their families across the state.

“Our competitive loan terms and rates, without fee increases, help keep more money in our members’ pockets,” said Andrew Rosen, president and CEO of Hawaii State FCU. “The launch of our investment services, mortgage lending program and new products have led to strong growth over the past two years, and we’ll continue to put this increased revenue back into expanding services for our members.”

Hawaii State FCU, which generates more loan volume than any credit union in the state, said net income rose to $1.51 million during the third quarter from $1.47 million in the year-ago period. For the first nine months of the year, net income has more than doubled to $6.9 million from $3.4 million.

During the first three quarters of the year, member loans increased $118.1 million, or 23.9 percent, from the year-earlier period.

Mortgage loans increased 44 percent to $187 million during that period; home equity lines of credit increased 12 percent to $201.4 million; and personal loans and lines of credit rose 26 percent to $131.1 million.

Average 30-year mortgage rate declines to 3.79 percent

WASHINGTON >> Average long-term U.S. mortgage rates fell this week, marking a 13th straight week below 4 percent and offering an enticement for potential homebuyers.

Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage fell to 3.79 percent from 3.82 percent a week earlier. The rate on 15-year fixed-rate mortgages eased to 2.98 percent from 3.03 percent. The rates are well below last year’s levels. A year ago the average 30-year mortgage rate was 3.82 percent, while the rate for 15-year loans was 3.08 percent.

The low rates and steady job gains have helped the real estate market reach what appears to be a stable plateau in recent months. Data issued Thursday by the National Association of Realtors showed that Americans snapped up more homes in September, suggesting that the housing sector remains insulated from global economic turmoil. Still, first-time buyers remain scarce, and relatively few properties are being listed for sale, capping the potential growth of the sector.

Sales of existing homes jumped 4.7 percent last month to a seasonally adjusted annual rate of 5.55 million. The average rate on five-year adjustable-rate mortgages rose to 2.89 percent from 2.88 percent. The average rate on one-year ARMs jumped to 2.62 percent from 2.54 percent.

On The Move

>> Coldwell Banker Pacific Properties has announced the following employees have joined the firm’s Kahala office:

— Lia Clark, a Realtor-associate, has joined the firm as an independent agent. She is licensed in Hawaii and California, where she continues to serve as a Realtor-associate with Coldwell Banker Residential Brokerage.

— Linda Griffith has joined the firm as a sales coordinator. She was previously a boutique administrator at Cartier.

Ship Ahoy!

Today’s ship arrivals and departures: