Lou Leon Guerrero At The Helm

Lourdes Leon Guerrero (Photo: Courtesy Bank Of Guam)

"When an organization's running really well, you go in and be consistent, keep the continuity and don't change the things that are working," Lou Leon Guerrero says. "We've been doing very well and the bank continues to be successful."

That's borne out by the announcement late last year that the privately-held bank's board of directors had authorized payment of common stock dividends for the third quarter ending December 1, 2005 at $0.125 (12 1/2 cents) per share. Making that announcement, Chief Operating Officer William D. Leon Guerrero said, "the improvements in our economy have spurred our earnings for the bank."

Bank of Guam’s main branch in Hagatna. (Photo: Frank Whitman)

Leon Guerrero takes the helm of Bank of Guam at a critical time for the company and the U.S. territory. Bank of Guam faces stiff competition from two Hawaii-based banks, Bank of Hawaii and First Hawaiian Bank. But the Guam market has been on a rebound for the past two years, particularly commercial and residential real estate, which were upside down for most of the 1990s. Real estate valuations are rising, and it appears the growth can be sustained.

In addition, the tourism and military sectors are enjoying significant growth. The visitor market has seen at least six hotels change ownership in the past two years, and the new investors are beginning to pour millions of dollars into badly needed deferred maintenance, refurbishments and in some cases, major remodeling of Guam's hotels and resorts.

The U.S. military is also expanding its presence on Guam in a way not seen since the Vietnam Nam War era. While it is uncertain whether Guam will beat out Hawaii as the homeport for a U.S. Navy carrier battle group, the U.S. territory seems certain to get more nuclear powered attack submarines and up to 7,000 U.S. Marines, who are now based on Okinawa.

These developments give Bank of Guam and other financial sector players on the island, an opportunity for expanded commercial lending, new financial services and pass-through activity that they have not seen in at least a decade.

Though she knows well the bank's direction and overall condition, one of Lou Leon Guerrero's first tasks will be to visit the bank's 22 branches (on eight islands) and meet it's nearly-400 employees. Bank of Guam's off-island branches are located in the Commonwealth of the Northern Mariana Islands; Federated States of Micronesia; Republic of Palau; Republic of the Marshall Islands; and, California on the U.S. mainland.

While she is acquainted with many of the bank's workers, "I don't really know their capacities, their abilities; what is it that they want to do for the bank; how do they see the bank's direction; what are their ideas," she told Pacific Magazine.

Lou Leon Guerrero was born and raised in Guam, graduated from the Academy of Our Lady of Guam, and received a bachelor's degree in nursing from California State University in Los Angeles and a master's degree in Public Health from the University of California at Los Angeles (UCLA). She is married to attorney Jeff Cook with whom she has two children, Joaquin and Mariana.

Leon Guerrero served on the bank's board from 1991 to 1998 and was reappointed in 2002. She has been the bank's vice chairwoman since September 2002 and has served in an acting capacity as board chairwoman since her brother's illness prevented him from filling those duties.

Leon Guerrero looks forward to working with the rest of the bank's leadership, which will remain in place. "Bill (Leon Guerrero) is our vice chairman and he's the chief operating officer; I think we're going to be a great team," she says. "Bill is certainly the expert and the detail man." She also expressed confidence in the bank's top management: which includes Josephine Mariano, Jackie Marati, Joyce Miyashita and Chief Financial Officer Frank Atalig. "These are strong people behind the scenes that make for the pillar of the organization."

Leon Guerrero also intends to review the bank's plans to ensure that it is adapting to current conditions."What I would like to do within the first three months that I step in is to get the senior management people together and review the strategic plan and revise it and say 'OK, now given our economic condition and what we think is going to happen five years from now, let's revise this, let's see where we need to be," she says. In particular, she plans to consider expanding the bank's operations in California, opening a branch in Hawaii (Bank of FSM recently received regulatory approval to open a branch in Hawaii), taking advantage of Guam's proximity to Asia and optimizing the bank's online services.

Bringing her outside experience into her new job is an advantage, she says.

"A senior manager said to me, 'Lou, the fact that you didn't get your degree in banking or whatever is actually good because you don't come in with preconceived notions of what banking should be, so you bring in ideas and say, 'Let your imagination go and let's see what we can do'.''