Bank of Hawaii puts
Micronesia, Marshall
branches up for sale

---

By Star-Bulletin staff

Pacific Century Financial Corp., continuing a strategy to divest far-flung assets, said yesterday it is selling four Bank of Hawaii branches in Micronesia and the Marshall Islands.

The Honolulu-headquartered company is seeking a buyer for its Majuro branch in the Republic of the Marshall Islands and its branches in Pohnpei, Yap and Kosrae in the Federated States of Micronesia.

The bank said it hopes to complete the sales by June 30. It will retain operations in Guam, the Commonwealth of the Northern Mariana Islands and the Republic of Palau.

Since April 2001, Bankoh has pursued a strategy of selling off non-Hawaii operations to focus on its core market in the islands. The bank said it would sell all South Pacific branches except those in American Samoa, Tokyo and Guam.

Bankoh said that under its plan, it could not make the branches profitable enough to retain them. In the past year, the bank tried to streamline the operations and increase revenue, but could not bring returns to the level of other West Pacific locations.

"It was a difficult decision because of Bank of Hawaii's long ties to the region," Pacific Century Chairman and Chief Executive Michael E. O'Neill said. "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 four branches have combined deposits of about $72.5 million and loans of $16 million, as of Dec. 31. The 49 workers are anticipated to be retained by the next owner, Bankoh said. Pacific Century Trust, a Bankoh trust and investment division, will continue to serve clients in the area after the branches are sold.