BoG’s 4Q dividends reach $1.24M

Slowdown in the overall lending activities of the banking industry in the region failed to deter Bank of Guam from fostering growth in the fourth quarter of 2000, with dividends paid to shareholders reaching $1.24 million.

Payment of common stock dividends of $0.125 per share on more than 9.902 million shares outstanding was authorized by the bank’s Board of Directors during its regular meeting on November 27, 2000.

The payment of common stock dividends was made possible by the continued strong financial performance of the bank, according to BoG President and Chief Executive Officer Anthony A. Leon Guerrero in a statement.

BoG 4th quarter dividends was paid last Dec. 31, 2000 to shareholders of record as of Dec. 15, 2000. Following the bank’s recent listing on the Pacific Exchange, the dividends will be disbursed by Bank of New York, BoG’s new paying agent.

“Despite the region’s current economic difficulties, the fourth quarter dividends reflect the Bank’s strong capitalization and profit trends that allow us to continue to provide a higher return to our shareholders,” said Mr. Leon Guerrero.

BoG earlier this year entered into a $30 million loan agreement with the CNMI government through the Commonwealth Development Authority which provided the necessary push in overall loan figures last year.

This mitigated the deeper plunge of lending activities in 2000 which occurred due to weaker ability of borrowers to service their loans due to the turtle-pace recovery of the CNMI economy.

The CNMI Department of Commerce has reported a downward trend in the amount of outstanding loans from banking institutions on the island beginning in the third quarter of the calendar year 1999.

Commerce officials said private banks normally adapt a more cautious, conservative approach on approving loan applications in times like this when the economy persistently rallies weaker and slowly.

During the third quarter of 1999, bank loans totaled $300.2 million which dipped four percent to $288.3 million in the October-November period, the government report said.

The Banking and Insurance Division disclosed loan agreements approved by banks in the April-June 2000 period fell to $260.9 million from the previous quarter’s $293 million.

Private loans fell 12 percent in the same period to $252.106 million from the previous quarter’s $285.565 million, although real estate loans registered a modest growth of two percent to exceed the $50 million-mark from $49.5 million in the first three months of the year. (AR Fajardo)