First Horizon closing isle banking services
First Horizon Home Loans, a subsidiary of First Tennessee Bank National Association, is shutting down its small local banking operation.
As of Dec. 31, no more deposits will be accepted by the Honolulu branch, which will lay off two employees and refer bank customers to its Internet service or 1-800 numbers connecting to the mainland.*
The company's home mortgage loan business, however, will remain open for business on Alakea Street, according to Honolulu branch manager Stan Ishii.*
First Horizon first opened its doors in August 2004, offering full-fledged banking operations in the islands.
"We are still very healthy as a mortgage company and as a bank," said Ishii. "Our bank rates still remain very competitive."
However, First Horizon has decided to switch to Internet banking to reduce infrastructure and overhead costs. Its corporate parent, First Tennessee, is eliminating all bank specialists in mortgage offices across the nation.
At the same time, it has decided to sell of 34 of its freestanding branches across the nation, including those in Atlanta, Ga., Dallas, Texas and Northern Virginia.
Ishii said the banking services were growing in demand due to higher yield savings accounts and CDs, with deposits ranging anywhere from between $4 million to $8 million per month.
"We are very sympathetic to senior citizens who don't have computers," he said.
The mortgage division will retain 10 retail loan officers and four wholesale officers.
One employee will remain with First Horizon's banking division, primarily to assist customers with the transition to the Internet. Customers with questions about their accounts can call (800) 489-2111.
Tuesday, October 2, 2007
» First Horizon Home Loan's Honolulu branch will continue taking deposits until Dec. 31. An article on Page C1 Friday erroneously said it would stop yesterday. Also, the Honolulu branch manager is Stan Ishii, not Sam Ishii.
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