BoS to reopen Garapan branch, cites $1M profit in ’04

Almost a year and a half since it reopened its main branch in Chalan Kanoa, the Bank of Saipan announced that it would soon reopen its Garapan outlet, declaring the judicial court-approved rehabilitation plan successful as it reported about a million dollars in net profit this year.

Before the bank reopens the Garapan branch in mid-January, BoS president Jon Bargfrede said the bank would issue automated teller machine cards to its depositors. Bargfrede said the bank would also acquire its own ATM machines sometime next year.

“The rehabilitation plan was successful. We are now steadily profitable and ready to expand our consumer loan programs,” Bargfrede said.

“The bank has done so well after its reopening one year ago that it has decided to accelerate its account repayment plan by making available all of the previously frozen customer accounts one month earlier than called for under the Superior Court’s approved rehabilitation plan,” the bank said in a media release.

When the bank reopened on May 27, 2003, it set limits on monthly withdrawals. The bank only allowed monthly withdrawals of up to 10 percent of the account balance of existing checking accounts, while the limit for monthly withdrawals for existing savings and CD accounts was 5 percent of the account balance. The bank did not impose any withdrawal restriction on new deposits after its reopening.

Bargfrede said in an interview yesterday that the bank’s net profit reached about $990,000 from January to October this year. He projected the bank’s net profit by yearend to reach over a million dollars. He also disclosed projections that the bank would earn between $450,000 to $600,000 in net profit next year.

Bargfrede said bank deposits have totaled $26 million, with some $3.6 million coming in since the May 2003 reopening. He said the bank’s cash and liquid investments have reached $12.5 million. About $3 million have been recovered from its delinquent loan portfolio.

The bank president also disclosed that BoS has revived loan services since last month. Since then, the bank has loaned out a total of approximately $140,000 to clients. He also said that the plan to issue ATM card is in the process following the approval by the Federal Reserve Bank.

“The community rallied to the bank in a remarkable way. Over 1,000 new accounts were opened in the last year, most loans are being paid on time, new loans are being processed, and we are now once again a solid and profitable bank,” Bargfrede said.

“Opening up our Garapan office once again is the bank’s way of showing the public that we are back to normal,” he added.