Board Chairman and Yap Gov. Sebastian Anefal, called the meeting to order, welcomed everyone to Yap with special recognition to new board members including Speaker Judith Won Pat representing Guam Legislature, Speaker Henry Falan representing Yap State Legislature, Speaker Lyndon Abraham representing Kosrae State Legislature, and Lt. Gov. Carson Sigrah representing Kosrae state executive branch.
Prior to adjournment, the board elected Gov. John Ehsa of Pohnpei as chairman, Vice President Kerai Mariur of Palau as vice president, and left the secretary position to be filled by one of the members from the CNMI.
Ehsa said, “I thanked all of you for electing me to take over this challenging job, and I will do my best to continue the excellent work and leadership of Governor Anefal.” The board also selected Kosrae state as venue for its next annual board meeting.
Major items included in the Yap meeting agenda include review of the bank’s 2010 operational results and performance and its 2010 independent audit report, review of the bank’s 2011 budget and goals, and the bank’s capitalization and capacity which is vital to its core activity of lending.
Aren Palik, bank president and CEO, presented the bank’s 2010 operational results and performance with a summary highlighting a 9 percent growth in total assets, 12 percent growth in loans, 1.5 percent return on assets, 3 percent growth in stockholders’ equity, and a strong asset (loan) quality with a 1.8 percent delinquency ratio and zero loan charge offs for the year.
The bank has consistently held its delinquency ratio below 3 percent over the past five years. He also reported that the bank had a clean audit with an unqualified audit opinion. Palik said: “We have been successful in restructuring our balance sheet and position the bank for continued and sustained growth while strengthening our earnings capacity, but we are far from fulfilling the bank’s mission and purpose.”
He added that the bank has seen an increasing demand for its products and services against limited capital and loan able funds.
Anefal said “in order for PIDB to forge a greater and lasting impact on the development of our member islands, PIDB must increase its capitalization and capacity.”
The board last year created a task force whose primary task is to work on the bank’s capitalization and funding.
In this meeting, the board reviewed the activities and progress of the task force.
