Bank of Hawaii, which in the early 2000s sold or closed most of its international and mainland branches to focus on Hawaii, is retrenching again.

The state’s second-largest bank said Friday it is ending its more than 40-year presence in American Samoa by closing its two branches there, pulling out its seven automated teller machines and laying off 30 employees. The closures of the Tafuna and Utulei branches will occur in the first quarter. Bank of Hawaii has been in the U.S. territory since 1969.

"After serving the American Samoa market for more than 40 years, this was a decision that was not made lightly," said Hobbs Lowson, vice president and district manager for American Samoa. "In 2000, we made the strategic decision to centralize our footprint back to our core Hawaii and Guam markets, but opted to also keep a presence in American Samoa, where we felt we could deliver the appropriate level of service. However, it’s become increasingly difficult to maintain that strategy in American Samoa due to its geographic isolation from our other markets."

Bank of Hawaii, with $13.4 billion in overall assets, will have 74 branches and 489 ATMs systemwide following the closure. The bank declined to disclose the number of accounts or assets it had in the two American Samoa branches.

Outside Hawaii, the bank still has six branches on Guam, two on Saipan and one on Palau.

Bank of Hawaii Vice Chairman Wayne Hamano said the company will continue to hold onto its Guam, Saipan and Palau branches.

"We held onto the West Pacific —Guam, Saipan and Palau — (following South Pacific branch closures or sales in the early 2000s) because we felt we could adequately serve those communities and add value to those communities," Hamano said. "But times change and banking requirements have changed, too. The distance between us and Samoa and Guam, which is the headquarters of all of the West Pacific operations, just made it too difficult to manage."

Saipan is about a 20-minute plane ride from Guam and Palau is about two hours away by air. Hamano said there are no flights from Guam to American Samoa, so getting there from the Guam headquarters would require a seven-hour flight to Honolulu and then an eight-hour flight to Samoa.

"We weren’t losing money there," Hamano said. "It was just trying to balance the resources you have available with the return that you’re getting, the effort and the activity."

When now-Citigroup Chairman Michael O’Neill took over Bankoh in November 2000, the bank had stretched itself too thin with overseas and mainland expansion, and earnings were being eroded by an underperforming loan portfolio. O’Neill transformed Bankoh into a more efficient operation partly by closing or selling branches in Asia, Fiji, Vanuatu, the Solomon Islands and Tonga, as well as California and Arizona.

With Bank of Hawaii exiting American Samoa, the only bank remaining there will be Australia-based ANZ Bank. Bankoh said it is working with the American Samoa government and ANZ Bank to provide a smooth transition.

Lowson said customers will have ample time to close or transfer accounts and those who do not do so prior to their respective branches closing will be mailed a cashier’s check for the balance in their account. Customers who have loans with the bank will be provided future payment instructions. Arrangements also will be made for those customers who have safe deposit boxes. Lowson said the bank also will work with any clients who wish to continue banking with Bankoh through its Hawaii offices.

Employees will receive severance based upon years of service. The bank said employees wishing to remain with Bank of Hawaii and work at another location will be given the opportunity to do so.