Bank of Saipan celebrates 25 years of service

Exactly 25 years ago, the Northern Marianas gave birth to financial institution bearing the name of its capital municipality—the Bank of Saipan.

Today, the bank looks forward to better times ahead, managing to survive despite temporarily closing its doors to its patrons after undergoing a crisis in 2002.

Under the leadership of veteran banker Jon Bargfrede, the bank is upbeat about reviving full service to clients in a few weeks, just over a year since the bank reopened to customers in May 2003 pursuant to a court-approved receivership plan.

“We hope to be here for another 25 years. There have been tough times, but we’re doing our best to recover,” Bargfrede said.

Bargfrede said the bank might be able to revive its loan services by July, a development that would make the institution more financially viable.

While awaiting the government’s approval for these services, Bargfrede already reported on some $500,000 in net profit, which the bank earned from January to May this year. Bargfrede said the bank has been successful in aggressively collecting old loans to improve its loan portfolio.

Total bank deposits have reached $30 million, about 10 percent of which are new accounts. Bargfrede said cash and liquid investments amount to $13.5 million.

“We’re doing very well this year,” Bargfrede said, expressing optimism that the trend would continue and further improve.

He noted that the BoS continues to enjoy the confidence of its biggest government depositor, the Marianas Public Lands Authority, which has some $9 million out of the $15 million in CNMI funds deposited in the bank.

Recently, the bank and the MPLA struck a deal allowing the agency limited access to its funds after being restricted since the receivership began.

The Superior Court had also ordered the Northern Mariana Islands Retirement Fund to negotiate with the bank an arrangement similar to that between BoS and the MPLA. The Fund has some $5.6 million in deposits.

The court reportedly gave the Fund and BoS until June 29 to work out such an agreement. If this is not reached, the parties will submit their respective proposed agreements by June 30 pursuant to a court order, after which the court would lay down the terms of an agreement.

Once the agreement with the Fund is finalized, the bank expects the CNMI banking director to approve BoS’ revival of loan services.

The bank is located on Beach Road, Chalan Kanoa. Free sandwiches and refreshments would be offered to clients today in commemoration of the bank’s anniversary.