Bank of Hawaii, which twice delayed its planned departure from American Samoa, is now planning to stay in the U.S. territory for an indefinite period.
The state’s second-largest bank will keep the Utulei branch open until a suitable replacement organization can be found, said Peter Ho, chairman, president and CEO of Bank of Hawaii.
The exit of Bankoh, which has been in American Samoa since 1969, would deprive the territory of its only U.S. bank, delay cash checking and make it more difficult to send and access money, officials have said. Bankoh’s extension will give a local startup bank, Community Bank of Amerika Samoa, additional time to complete its setup requirements.
Australian-based ANZ, owned by Australia and New Zealand Banking Group, is the only other bank in the territory.
Ho made the decision to delay the bank’s departure after meeting with American Samoa Gov. Lolo Matalasi Moliga on Monday morning at Bank of Hawaii’s headquarters in Honolulu.
"I am very humbled, overwhelmed and (left) speechless by Chairman, President and CEO Peter Ho and Bank of Hawaii’s continued commitment and great sensitivity to the needs of the people of American Samoa reflected in his approval of my plea for help to extend Bank of Hawaii’s departure timeline beyond March 14," Moliga said in a statement.
Ho said it is evident that additional time would be beneficial for the local community.
"Our commitment is to provide a smooth transition for our customers and the American Samoa government, and we will not leave until we are comfortable that the depository needs of the territory can be appropriately accommodated," Ho said in a statement.
"We want to be supportive."
Bankoh had planned to close the Utulei branch in March this year but then extended the closure first by 90 days to June 14, 2013, and then by 12 months to March 14, 2014.
Ho has said the bank was leaving American Samoa because it was in the best interest for the bank’s shareholders to make Bankoh a more efficient operation, and that American Samoa is geographically isolated from the bank’s other markets.
Moliga said Ho’s decision "transcended my expectations."
"He has assured me that Bank of Hawaii will leave the American Samoa market only when it is determined that its departure will not cause economic disruption for the territory," Moliga said.
"Peter Ho’s decision to delay Bank of Hawaii’s departure from American Samoa reflects not only his leadership character but that of Bank of Hawaii putting people first instead of profits, thereby promoting the true spirit of ‘aloha,’" Moliga added.
