American Samoa courting Hawaii bankers

An American Samoan delegation led by Afimutasi Gus Hannemann, oldest brother of the former Honolulu mayor, is hoping to persuade Hawaii bank officials to open a branch in the U.S. territory amid the pending departure of Bank of Hawaii early next year.

Bank of Hawaii said last month it will end its four-decade presence in American Samoa during the first quarter by closing its two branches there — in Tafuna and Utulei — and laying off 30 employees. Bank of Hawaii has been in American Samoa since 1969.

Hannemann, a Hawaii resident whose brother Mufi was mayor until stepping down in 2010 for an unsuccessful run for Hawaii governor, said it’s imperative to have a U.S. bank in American Samoa. The elder Hannemann, a former member of the American Samoa Legislature, said Bankoh’s exit will leave Australia-based ANZ Bank the only remaining bank in the territory.

"We were very comfortable and proud to have a U.S. bank in our territory, especially with the proximity to Hawaii and Hawaii being the first entry to the U.S. on the way to the mainland," Hannemann said.

The American Samoa-born Hannemann has been contacting Hawaii bank officials to set up meetings. Less than two weeks ago, Hannemann, Lt. Gov.-elect Lemanu Peleti Mauga, and advisers Iulogologo Joseph Pereira and Falema’o Pili met with Central Pacific Bank Chief Banking Officer Lance Mizumoto.

"He left the door open for us to continue the conversation," Hannemann said.

Mizumoto confirmed the meeting but said "at this time we have not made a decision to pursue it any further."

The delegation that accompanied Hannemann to that meeting returned to American Samoa for the holidays and Thursday’s inauguration of Gov.-elect Lolo Moliga and Mauga. But Hannemann said he is seeking to set up additional meetings when the American Samoa delegation returns in early January.

So far he has a Jan. 15 meeting scheduled with First Hawaiian Bank President and CEO Bob Harrison.

"We are going to be meeting with them in mid-January but have no plans on expanding out of our existing marketplace at this time," Harrison said.

Outside of Hawaii, First Hawaiian has three branches on Guam and two on Saipan.

Hannemann also has placed calls to American Savings Bank and Hawaii National Bank seeking meetings, and was told over the phone by Pacific Rim Bank that it would not be able to expand there.

American Savings President and CEO Rich Wacker said Friday that the bank is not interested.

"American Savings Bank is focused on serving Hawaii well and is not looking to expand outside of Hawaii," Wacker said.

Still, Hannemann is persistent. He has a tentative meeting scheduled during the second week of January with Bank of Hawaii. Hannemann said he hopes the delegation can either persuade the bank to change its mind or, at the least, find out what the government can do differently to attract a U.S. bank.

First Hawaiian and Bank of Hawaii are the only Hawaii-based banks with branches outside the state. Bankoh has six branches on Guam, two on Saipan and one on Palau.

"I can’t believe why they would leave American Samoa unless they were losing money," Hannemann said of Bank of Hawaii. "We want to find out if there’s anything the government can do to get them to stay. That’s our first goal. If we can’t get them to change their mind, we want them to tell us what we need to change and tell us why they left."

Bank of Hawaii Vice Chairman Wayne Hamano said last month the bank decided to withdraw from American Samoa because its geographic isolation made it too difficult to manage.

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

Hannemann, who came to Hawaii when he was 12, said that of seven siblings only Mufi and their younger sister were born in Hawaii. The others were born in American Samoa.

"It would be devastating to not have a U.S. bank in American Samoa," he said.