Bank of Hawaii pulling out of American Samoa

Bank of Hawaii is finally exiting American Samoa — 6-1/2 years after putting its plans on hold following a plea by the U.S. territory’s governor.

The state’s second-largest bank and the American Samoa government jointly announced final plans Tuesday for Bankoh to close its remaining operations in American Samoa on Aug. 16.

Bankoh announced in November 2012 its intention to leave American Samoa to focus on its Hawaii and West Pacific operations. But even though Bankoh subsequently closed one of its two branches there, it never completely pulled out after American Samoa Gov. Lolo Matalasi Moliga came to Hawaii in December 2013 to plead his case to Bankoh Chairman, President and CEO Peter Ho. Moliga requested that Bankoh remain in American Samoa until the territory could establish replacement banking services.

“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 at the time. “We want to be supportive.”

Moliga responded: “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.”

Since that time, the American Samoa government established the Territorial Bank of American Samoa (TBAS), which opened for business on Oct. 3, 2016. It received final approval to access the Federal Reserve’s U.S. payments system in April 2018. To help with the transition, Bankoh donated its Utulei branch space in the Centennial Building and the Bankoh residence in Gataivai to TBAS.

Bankoh consumer-­account holders in American Samoa at the remaining Tafuna branch will have the option of remaining Bankoh customers or closing their accounts. For those consumers wishing to remain Bankoh customers, their accounts will be transferred to Honolulu. These customers will have several ways to transact with the bank, including online, by phone, or by mobile devices. Consumer time deposit holders and IRA clients will continue doing business with the bank by mail. Business­-account holders who do not move their accounts to another bank before to Aug. 16 will be mailed a cashier’s check for the balance in their account.

TBAS said it welcomes any customers who wish to open accounts.

Bankoh, which began operations in American Samoa in 1969, currently has six employees there and said they will have the option of applying for open positions with Bankoh in Hawaii or the West Pacific. Those not continuing employment with Bankoh will receive separation benefits.