Bank of Saipan to close Rota branch after 33 years

Bank of Saipan plans to close its Rota branch after 33 years, with president and CEO John Arroyo saying a prolonged economic downturn, the island’s declining population, and damage from Super Typhoon Bavi made continued operations increasingly difficult to justify.

In an interview with Marianas Press, Arroyo said the decision was not made lightly and had actually been contemplated for several years. The bank’s notice to customers said the Rota branch would close on or before the end of the year.

“It’s a decision that we agonized over for quite some time,” Arroyo said. “And one that we started thinking about several years ago, but just never enacted.”

Arroyo said Bank of Saipan opened on Rota 33 years ago primarily to give residents another banking option at a time when only one other bank operated on the island.

He said the Rota branch had underperformed financially since it opened, but the bank’s Saipan and Tinian operations had subsidized the Rota branch, allowing it to continue serving the island.

That arrangement became harder to sustain amid the broader economic downturn, Rota’s declining population, and damage from Bavi, which hit the island hard.

Arroyo said those factors ultimately convinced the bank that the time had come to close the branch.

“If we could have justified a reason to stay open longer, then we would have,” he said. “But these factors were just too overwhelming for us at this time.”

The Rota branch currently operates mostly on a half-day schedule and employs three part-time workers. Arroyo said the employees have other sources of income and will assist the bank as it winds down operations. He said the bank wants to treat them fairly because they have been part of the Bank of Saipan family for some time.

Although Bank of Saipan has publicly given itself until the end of the year to complete the closure, Arroyo said the bank is currently planning to shut down the Rota branch by the end of September.

The bank has sent notices to customers outlining options for maintaining their accounts after the physical branch closes. Arroyo said customers can continue making deposits through direct payroll deposits, make loan payments, use their debit cards, access online banking, and use the bank’s mobile app. Customers can also contact the bank directly for assistance.

Bank of Saipan does not expect to maintain a physical presence on Rota once the branch closes. However, Arroyo said the bank plans to keep its license active in case economic conditions improve enough to make a return feasible.

“We definitely hope and we look forward to that happening,” Arroyo said. “We do want to come back to the island.”

Arroyo also thanked the bank’s Rota customers for their loyalty and acknowledged that the closure comes at a difficult time for the island.

“To our customers, I want to thank you for your loyalty and your dedication,” he said.

Turning to Bank of Saipan’s overall condition, Arroyo said the locally based financial institution is also navigating the CNMI’s challenging economy.

“We’re holding on as tightly as we can. We’re watching every penny,” he said.

Unlike other banks operating in the Commonwealth, Arroyo noted that Bank of Saipan operates only in the CNMI, leaving it particularly exposed to local economic conditions.

“It’s tough for us, but it’s manageable,” he said. “And, you know, we will continue to persevere.”

Bank of Saipan will continue operating its Saipan and Tinian branches after the Rota closure. Arroyo said the bank has about 20 employees overall.