Bank of Hawaii
Encyclopedia
The Bank of Hawaii Corporation (BOH) is a regional commercial bank
headquartered in Honolulu, Hawaii
. It is Hawaii's second oldest bank and its largest locally owned bank in that majority of the voting stockholders reside within the state. Bank of Hawaii has the most accounts, customers, branches, and ATMs of any financial institution in the state (although BancWest's First Hawaiian Bank
holds a greater number of dollars in deposits).
(1849–1909) with his brother-in-law Joseph Ballard Atherton and business partner Peter Cushman Jones
founded Bank of Hawaii. In 1897 it was chartered in the Republic of Hawaii
by interior minister James A. King
. Thereafter, BOH would grow both organically and by acquisition.
A decade after its founding, in 1903, opened its first branch, on Kauai
. In 1922, it made its first acquisition when it acquired First Bank of Hilo, which had four branches and which had been founded in 1901. Then in 1930 it amalgamated Bank of Maui.
Charles Dexter Lufkin organized First National Bank of Wailuku in 1901. Five years later, he had organized Lahaina National Bank. Then he organized the First National Bank of Paia
in 1913. Lastly, in 1917, First National Bank of Paia merged with Lahaina National Bank and First National Bank of Wailuku to form Bank of Maui
, which
Between the Great Depression and World War II, it was not until 1959 that BOH made another novel move when it opened its first Pacific Islands branch on Kwajalein
. Two yeaars later it opened a branch each on Palau
and Guam
.
Ten years later BOH continued its international expansion by absorbing Bank of American Samoa
, which the Navy had established in 1914. That same year it created Banque de Tahiti as a joint venture between it and Crédit Lyonnais
. The next year BOH established a branch on Yap
. Branches on Ponape
and Kosrae
followed in subsequent years.
In 1971, BOH reorganized as a bank holding company, Hawaii Bancorporation. It also continued its expansion outside Hawai'i with the establishment of a branch on Saipan. Three years later, BOH and Crédit Lyonnais established another joint-venture, Banque de Nouvelle Calédonie in Nouméa
.
In 1979 Hawaii Bancorporation changed its name to Bancorp Hawaii. The next year, BOH opened branch in Tokyo
.
In 1985, BOH merged with Hawaiian Trust Company. Four years later BOH finally expanded to the US mainland when bought First National Bank of Arizona. The next year it continued its expansion in Hawai'i with the purchase of FirstFed America, which was a holding company for banks in Hawaii and on Guam.
BOH acquired Banque Indosuez's operations in Vanuatu
to form Banque d’Hawaii (Vanuatu) in 1993, Commonwealth Bank of Australia's shares in National Bank of Solomon Islands
in 1994 and most of Crédit Lyonnais' holdings and attained a 91% ownership in Banque de Nouvelle Calédonie. BoH also opened its first branch in Fiji
, in Suva
in 1996.
In 1997 Bancorp Hawaii changed its name to Pacific Century Financial Corporation (PCFC). Banque de Nouvelle Calédonie changed its name to Bank of Hawaii—Nouvelle Calédonie. BoH also purchased Banque Indosuez Nuigini in Papua New Guinea
from Banque Indosuez and renamed it Bank of Hawaii (PNG) Ltd. In addition to its main office in Port Moresby
, Bank of Hawaii (PNG) also had an office in Lae
, PNG's second port city on the north-east coast. Indosuez Nuigini was established in 1983 with 49% Indosuez participation, 41.5% Bank of Papua New Guinea
, and the remainder public. PCFC acquired California United Bank. Other Pacific Century subsidiaries included First Federal Savings and Loan Association of America (in Hawaii-later merged into BoH), and Pacific Century Bank and Pacific Century Savings in Arizona
.
In 1998 BoH bought 5.4mn convertible notes of Bank of Queensland
as part of a strategic alliance. It also acquired 100% of Banque Paribas Pacifique (est. 1972; 3 branches) and 70% of Banque Paribas Polynésie (est. 1984; 1 branch). BoH integrated the operations in with Bank of Hawaii-Nouvelle Calédonie and Banque de Tahiti, respectively. PCFC merged its two mainland subsidiaries, California United Bank and Pacific Century Bank (in Arizona) into one nationally chartered entity, Pacific Century Bank, headquartered in California
.
In 1999 BoH bought 5.8mn shares (approx. 10%) in Bank of Queensland and it also bought First Federal Savings and Loan from its own holding company.
In 2000 PCFC's subsidiary, Pacific Century Bank, sold its nine branches in Arizona to Zions Bancorporation
for merger into Zions' subsidiary, National Bank of Arizona.
In 2001 BoH sold its 6.2mn shares and 5.4mn convertible notes in Bank of Queensland. The decision reflected PCFC's new Strategic Plan, which mandated a focus on the bank's core markets in Hawaii, the West Pacific, American Samoa
and Japan
. PCFC sold its Pacific Century Bank (PCB) subsidiary to U.S. Bancorp
. The subsidiary had 20 branches in Southern California. BoH sold its shareholding in the Bank of Tonga and Pacific Commercial Bank of Samoa
to Westpac
. BoH and Westpac both had 30% interests in Bank of Tonga and 42% interests in Pacific Commercial Bank. BoH sold its operations in Papua New Guinea, Vanuatu and Fiji to ANZ. BoH sold its approximately 95% share interest in its French Polynesia and New Caledonia operations to France-based Caisse Nationale des Caisses d'Epargne (CNCE). Its operations in French Polynesia included 17 branches of its subsidiary, Banque de Tahiti, and about 265 employees. Its operations in New Caledonia included eight branches of subsidiary Bank of Hawaii-Nouvelle Caledonie and about 190 employees. Lastly, BoH closed its offices in Hong Kong, Seoul, Singapore, and Taipei.
In 2002, unable to find a buyer, BoH closed its Majuro
branch in the Republic of the Marshall Islands (RMI) and its three branches in Pohnpei, Yap and Kosrae in the Federated States of Micronesia
(FSM). BoH turned over its 51% interest in National Bank of Solomon Islands to the government of the Solomon Islands
. Pacific Century Financial reverted to the Bank of Hawaii name.
Michael O'Neill served as chairman and CEO from November, 2000, to 2004, when Landon assumed both positions. O'Neill did not take a salary or any bonuses during his three years at the helm, but controlled in 2004 about 2.73 million — about 5 percent — of the bank's total shares directly or under option. He later served on the board of Citigroup
, appointed in 2009.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
headquartered in Honolulu, Hawaii
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...
. It is Hawaii's second oldest bank and its largest locally owned bank in that majority of the voting stockholders reside within the state. Bank of Hawaii has the most accounts, customers, branches, and ATMs of any financial institution in the state (although BancWest's First Hawaiian Bank
First Hawaiian Bank
First Hawaiian Bank is a regional commercial bank headquartered in Honolulu, Hawaii at the First Hawaiian Center. It is a subsidiary of BancWest Corporation, which itself is a subsidiary of the French banking company, BNP Paribas...
holds a greater number of dollars in deposits).
History
In 1893, Charles Montague CookeCharles Montague Cooke
Charles Montague Cooke was a businessman during the Kingdom of Hawaii, Republic of Hawaii and Territory of Hawaii.-Life:Charles Montague Cooke was born May 6, 1849 in Honolulu, Hawaii. His father was Amos Starr Cooke co-founder of Castle & Cooke...
(1849–1909) with his brother-in-law Joseph Ballard Atherton and business partner Peter Cushman Jones
Peter Cushman Jones
Peter Cushman Jones was a businessman and politician during the Kingdom of Hawaii, Provisional Government of Hawaii, Republic of Hawaii and Territory of Hawaii.He founded the second bank in the Hawaiian Islands.-Early life:...
founded Bank of Hawaii. In 1897 it was chartered in the Republic of Hawaii
Republic of Hawaii
The Republic of Hawaii was the formal name of the government that controlled Hawaii from 1894 to 1898 when it was run as a republic. The republic period occurred between the administration of the Provisional Government of Hawaii which ended on July 4, 1894 and the adoption of the Newlands...
by interior minister James A. King
James A. King
James Anderson King was a ship's master who became a politician of the Republic of Hawaii.-Life:James Anderson King was born in Scotland in 1832....
. Thereafter, BOH would grow both organically and by acquisition.
A decade after its founding, in 1903, opened its first branch, on Kauai
Kauai
Kauai or Kauai, known as Tauai in the ancient Kaua'i dialect, is geologically the oldest of the main Hawaiian Islands. With an area of , it is the fourth largest of the main islands in the Hawaiian archipelago, and the 21st largest island in the United States. Known also as the "Garden Isle",...
. In 1922, it made its first acquisition when it acquired First Bank of Hilo, which had four branches and which had been founded in 1901. Then in 1930 it amalgamated Bank of Maui.
Charles Dexter Lufkin organized First National Bank of Wailuku in 1901. Five years later, he had organized Lahaina National Bank. Then he organized the First National Bank of Paia
Paia
Paia may refer to:*PAiA Electronics, a synthesizer kit company*Paia, Hawaii*Paia, a type of embutido*Promotion of access to information act...
in 1913. Lastly, in 1917, First National Bank of Paia merged with Lahaina National Bank and First National Bank of Wailuku to form Bank of Maui
Maui
The island of Maui is the second-largest of the Hawaiian Islands at and is the 17th largest island in the United States. Maui is part of the state of Hawaii and is the largest of Maui County's four islands, bigger than Lānai, Kahoolawe, and Molokai. In 2010, Maui had a population of 144,444,...
, which
Between the Great Depression and World War II, it was not until 1959 that BOH made another novel move when it opened its first Pacific Islands branch on Kwajalein
Kwajalein
Kwajalein Atoll , is part of the Republic of the Marshall Islands . The southernmost and largest island in the atoll is named Kwajalein Island. English-speaking residents of the U.S...
. Two yeaars later it opened a branch each on Palau
Palau
Palau , officially the Republic of Palau , is an island nation in the Pacific Ocean, east of the Philippines and south of Tokyo. In 1978, after three decades as being part of the United Nations trusteeship, Palau chose independence instead of becoming part of the Federated States of Micronesia, a...
and Guam
Guam
Guam is an organized, unincorporated territory of the United States located in the western Pacific Ocean. It is one of five U.S. territories with an established civilian government. Guam is listed as one of 16 Non-Self-Governing Territories by the Special Committee on Decolonization of the United...
.
Ten years later BOH continued its international expansion by absorbing Bank of American Samoa
Bank of American Samoa
The Bank of American Samoa no longer exists. In 1969 Bank of Hawaii acquired the bank, which then had three branches. BOH amalgamated Bank of American Samoa and now operates two branches in Pago Pago, Tutuila....
, which the Navy had established in 1914. That same year it created Banque de Tahiti as a joint venture between it and Crédit Lyonnais
Crédit Lyonnais
Crédit Lyonnais is a historic French bank. In the early 1990s it was the largest French bank, majority state-owned at that point. Crédit Lyonnais was the subject of poor management during that period which almost led to its bankruptcy in 1993...
. The next year BOH established a branch on Yap
Yap
Yap, also known as Wa'ab by locals, is an island in the Caroline Islands of the western Pacific Ocean. It is a state of the Federated States of Micronesia. Yap's indigenous cultures and traditions are still strong compared to other neighboring islands. The island of Yap actually consists of four...
. Branches on Ponape
Pohnpei
Not to be confused with Pompeii, the ancient city destroyed by Vesuvius in AD 79.Pohnpei "upon a stone altar " is the name of one of the four states in the Federated States of Micronesia , situated among the Senyavin Islands which are part of the larger Caroline Islands group...
and Kosrae
Kosrae
Kosrae , formerly known as Kusaie, is an island in Micronesia. The State of Kosrae is one of four states of the Federated States of Micronesia, and includes, besides the island of Kosrae, about a dozen satellite islands and islets, the most significant of which is Lelu Island.-Geography:With a...
followed in subsequent years.
In 1971, BOH reorganized as a bank holding company, Hawaii Bancorporation. It also continued its expansion outside Hawai'i with the establishment of a branch on Saipan. Three years later, BOH and Crédit Lyonnais established another joint-venture, Banque de Nouvelle Calédonie in Nouméa
Nouméa
Nouméa is the capital city of the French territory of New Caledonia. It is situated on a peninsula in the south of New Caledonia's main island, Grande Terre, and is home to the majority of the island's European, Polynesian , Indonesian, and Vietnamese populations, as well as many Melanesians,...
.
In 1979 Hawaii Bancorporation changed its name to Bancorp Hawaii. The next year, BOH opened branch in Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
.
In 1985, BOH merged with Hawaiian Trust Company. Four years later BOH finally expanded to the US mainland when bought First National Bank of Arizona. The next year it continued its expansion in Hawai'i with the purchase of FirstFed America, which was a holding company for banks in Hawaii and on Guam.
BOH acquired Banque Indosuez's operations in Vanuatu
Vanuatu
Vanuatu , officially the Republic of Vanuatu , is an island nation located in the South Pacific Ocean. The archipelago, which is of volcanic origin, is some east of northern Australia, northeast of New Caledonia, west of Fiji, and southeast of the Solomon Islands, near New Guinea.Vanuatu was...
to form Banque d’Hawaii (Vanuatu) in 1993, Commonwealth Bank of Australia's shares in National Bank of Solomon Islands
National Bank of Solomon Islands
National Bank of Solomon Islands has the largest network of offices in the Islands. Although the Bank overall is profitable, the offices outside Honiara, the capital, are running at a loss. On 27 April 2007, Bank South Pacific made a formal announcement to the Port Moresby stock exchange that it...
in 1994 and most of Crédit Lyonnais' holdings and attained a 91% ownership in Banque de Nouvelle Calédonie. BoH also opened its first branch in Fiji
Fiji
Fiji , officially the Republic of Fiji , is an island nation in Melanesia in the South Pacific Ocean about northeast of New Zealand's North Island...
, in Suva
Suva
Suva features a tropical rainforest climate under the Koppen climate classification. The city sees a copious amount of precipitation during the course of the year. Suva averages 3,000 mm of precipitation annually with its driest month, July averaging 125 mm of rain per year. In fact,...
in 1996.
In 1997 Bancorp Hawaii changed its name to Pacific Century Financial Corporation (PCFC). Banque de Nouvelle Calédonie changed its name to Bank of Hawaii—Nouvelle Calédonie. BoH also purchased Banque Indosuez Nuigini in Papua New Guinea
Papua New Guinea
Papua New Guinea , officially the Independent State of Papua New Guinea, is a country in Oceania, occupying the eastern half of the island of New Guinea and numerous offshore islands...
from Banque Indosuez and renamed it Bank of Hawaii (PNG) Ltd. In addition to its main office in Port Moresby
Port Moresby
Port Moresby , or Pot Mosbi in Tok Pisin, is the capital and largest city of Papua New Guinea . It is located on the shores of the Gulf of Papua, on the southeastern coast of the island of New Guinea, which made it a prime objective for conquest by the Imperial Japanese forces during 1942–43...
, Bank of Hawaii (PNG) also had an office in Lae
Lae
Lae, the capital of Morobe Province, is the second-largest city in Papua New Guinea. It is located at the start of the Highlands Highway which is the main land transport corridor from the Highlands region to the coast...
, PNG's second port city on the north-east coast. Indosuez Nuigini was established in 1983 with 49% Indosuez participation, 41.5% Bank of Papua New Guinea
Bank of Papua New Guinea
-Central Banking Act 1973:The Bank of Papua New Guinea was established by the Act of Parliament which defines its powers and functions:...
, and the remainder public. PCFC acquired California United Bank. Other Pacific Century subsidiaries included First Federal Savings and Loan Association of America (in Hawaii-later merged into BoH), and Pacific Century Bank and Pacific Century Savings in Arizona
Arizona
Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
.
In 1998 BoH bought 5.4mn convertible notes of Bank of Queensland
Bank of Queensland
Bank of Queensland , one of the oldest financial institutions in Queensland, Australia, is a retail bank with a network of almost 270 branches, including 152 in Queensland, 52 in New South Wales, 23 in Victoria and 34 in Western Australia. Following the Home Building Society and Pioneer mergers,...
as part of a strategic alliance. It also acquired 100% of Banque Paribas Pacifique (est. 1972; 3 branches) and 70% of Banque Paribas Polynésie (est. 1984; 1 branch). BoH integrated the operations in with Bank of Hawaii-Nouvelle Calédonie and Banque de Tahiti, respectively. PCFC merged its two mainland subsidiaries, California United Bank and Pacific Century Bank (in Arizona) into one nationally chartered entity, Pacific Century Bank, headquartered in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
.
In 1999 BoH bought 5.8mn shares (approx. 10%) in Bank of Queensland and it also bought First Federal Savings and Loan from its own holding company.
In 2000 PCFC's subsidiary, Pacific Century Bank, sold its nine branches in Arizona to Zions Bancorporation
Zions Bancorporation
Zions Bancorporation is a member of the S&P 500, a bank holding company headquartered in Salt Lake City, Utah, USA. Among its subsidiaries are Amegy Bank of Texas, California Bank & Trust, National Bank of Arizona, Nevada State Bank, the Commerce Bank of Oregon, the Commerce Bank of Washington,...
for merger into Zions' subsidiary, National Bank of Arizona.
In 2001 BoH sold its 6.2mn shares and 5.4mn convertible notes in Bank of Queensland. The decision reflected PCFC's new Strategic Plan, which mandated a focus on the bank's core markets in Hawaii, the West Pacific, American Samoa
American Samoa
American Samoa is an unincorporated territory of the United States located in the South Pacific Ocean, southeast of the sovereign state of Samoa...
and Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
. PCFC sold its Pacific Century Bank (PCB) subsidiary to U.S. Bancorp
U.S. Bancorp
U.S. Bancorp is a diversified financial services holding company, headquartered in Minneapolis, Minnesota. It is the parent company of U.S. Bank, the fifth largest commercial bank in the United States based on $330 billion in assets. U.S. Bank ranks as the sixth largest bank in the U.S. based on...
. The subsidiary had 20 branches in Southern California. BoH sold its shareholding in the Bank of Tonga and Pacific Commercial Bank of Samoa
Samoa
Samoa , officially the Independent State of Samoa, formerly known as Western Samoa is a country encompassing the western part of the Samoan Islands in the South Pacific Ocean. It became independent from New Zealand in 1962. The two main islands of Samoa are Upolu and one of the biggest islands in...
to Westpac
Westpac
Westpac , is a multinational financial services, one of the Australian "big four" banks and the second-largest bank in New Zealand....
. BoH and Westpac both had 30% interests in Bank of Tonga and 42% interests in Pacific Commercial Bank. BoH sold its operations in Papua New Guinea, Vanuatu and Fiji to ANZ. BoH sold its approximately 95% share interest in its French Polynesia and New Caledonia operations to France-based Caisse Nationale des Caisses d'Epargne (CNCE). Its operations in French Polynesia included 17 branches of its subsidiary, Banque de Tahiti, and about 265 employees. Its operations in New Caledonia included eight branches of subsidiary Bank of Hawaii-Nouvelle Caledonie and about 190 employees. Lastly, BoH closed its offices in Hong Kong, Seoul, Singapore, and Taipei.
In 2002, unable to find a buyer, BoH closed its Majuro
Majuro
Majuro , is a large coral atoll of 64 islands in the Pacific Ocean, and forms a legislative district of the Ratak Chain of the Marshall Islands. The atoll itself has a land area of and encloses a lagoon of...
branch in the Republic of the Marshall Islands (RMI) and its three branches in Pohnpei, Yap and Kosrae in the Federated States of Micronesia
Federated States of Micronesia
The Federated States of Micronesia or FSM is an independent, sovereign island nation, made up of four states from west to east: Yap, Chuuk, Pohnpei and Kosrae. It comprises approximately 607 islands with c...
(FSM). BoH turned over its 51% interest in National Bank of Solomon Islands to the government of the Solomon Islands
Solomon Islands
Solomon Islands is a sovereign state in Oceania, east of Papua New Guinea, consisting of nearly one thousand islands. It covers a land mass of . The capital, Honiara, is located on the island of Guadalcanal...
. Pacific Century Financial reverted to the Bank of Hawaii name.
Michael O'Neill served as chairman and CEO from November, 2000, to 2004, when Landon assumed both positions. O'Neill did not take a salary or any bonuses during his three years at the helm, but controlled in 2004 about 2.73 million — about 5 percent — of the bank's total shares directly or under option. He later served on the board of Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
, appointed in 2009.