Bankers on Hawaii's Big Island are preparing for any possible damage from the eruption of the world's largest active volcano, though so far the impacts appear limited.
The volcano, Mauna Loa, erupted Sunday night for the first time since 1984. It does not currently appear to be a significant threat, since the lava is not close to any physical properties or population areas.
But Central Pacific Bank, which operates branches on the island in Hilo and Kailua Kona, has a business continuity team that is tracking the eruption to limit the risk of any service interruptions.
The bank has also sent face masks to its Big Island branches in case residents experience any ash or air quality issues, said Tim Sakahara, a spokesman for the Honolulu-based bank.
"We'll do everything we can to respond appropriately and make sure that our customers and our employees are taken care of with anything that they may need," Sakahara said.
Authorities have not mandated any evacuations, though they have told residents to be prepared for an evacuation if the situation worsens. Sakahara said Central Pacific Bank does not expect any changes to its hours or operations, though it has told employees to maintain communications with their managers if they have any safety concerns.
The bank's customers are also able to use its mobile apps or call its customer service team if any issues arise, he noted. Customers' comfort with Central Pacific's digital tools is "very valuable, especially in times like this," he said.
Though volcanic eruptions are rare, Central Pacific has some recent experience. The Kīlauea volcano erupted in 2018, destroying hundreds of homes.
Though there is no immediate threat to the area, the eruption is "a rapidly evolving situation that may shift," Compass Point analyst Laurie Havener Hunsicker wrote in a note to clients. But right now, she noted, the risk to banks' loan books and deposit bases appears limited.
Loans and deposits on the Big Island make up a relatively small share of the balance sheets at each of the four publicly traded banks in Hawaii, including Central Pacific, Havener Hunsicker wrote.
Less than 4% of Central Pacific's loans were on the island as of the second quarter of 2018, according to data following the Kīlauea eruption, she noted. At Bank of Hawaii, the comparable percentage was 7% of the bank's loan book, while First Hawaiian Inc had 6% of its loans on the island, and Territorial Bancorp had 2% of its loan book there.
