Bank of Hawaii selling branches in Marshall Islands, Micronesia

Associated Press

Bank of Hawaii is selling its four branches in the Marshall Islands and the Federated States of Micronesia, in keeping with the bank's strategy of focusing on its core markets, the bank's parent said yesterday.

The bank is looking to find a buyer for its branch in Majuro in the Republic of Marshall Islands and three branches in Pohnpei, Yap and Kosrae by March 31 and close the sale by June 30, Pacific Century Financial Corp. said in a news release.

"It was a difficult decision because of Bank of Hawaii's long ties to the region," Michael E. O'Neill, chairman and CEO of Pacific Century, said in the release. "However, our business strategy must remain focused on emphasizing those markets that create the most value for our shareholders and have the strongest growth potential."

The branches in the Marshall Islands and Micronesia have combined deposits of about $72.5 million and loans of approximately $16 million as of Dec. 31. The bank employs 49 people, who may continue employment under new owners, the bank said.

The bank will retain its other Pacific operations in Guam, the Commonwealth of the Northern Mariana Islands and the Republic of Palau.

Bank of Hawaii sold Pacific Century Bank, Pacific Century's California subsidiary that has 19 branches, to U.S. Bancorp in September. It sold its interest in banks in Tahiti and New Caledonia last month to one of France's largest banks, and last fall said it would sell its operations in Fiji, Vanuatu and Papua New Guinea to Australia-based ANZ.