STRATEGIC PARTNERS
January 7, 2002
HAGATNA, Guam - First Hawaiian Bank, a subsidiary of BancWest Corporation (NYSE:BWE), has signed an agreement to acquire Union Bank of California's branch network in Guam and Saipan, along with associated loan and deposit accounts.
First Hawaiian Bank will assume branch deposits of approximately $200 million and buy various loans from the branches. First Hawaiian will also process merchant credit card transactions for Union Bank of California business customers in Guam and Saipan.
According to Donald Horner, First Hawaiian Bank vice chairman, Guam law prevents First Hawaiian from keeping the Union Bank of California branches open. Thus, the Guam deposit and loan accounts will be moved to First Hawaiian's branch at Maite. Customers will also be able to bank at First Hawaiian's other Guam branch, at Dededo.
On Saipan, First Hawaiian will keep open both its own branch at Gualo Rai and the Union Bank of California branch at Chalan Laulau.
In addition to the branches, former Union Bank customers will have access to First Hawaiian's ATMs in Guam and Saipan. First Hawaiian also plans to add additional ATMs in Saipan.
Horner said First Hawaiian would offer jobs to a majority of Union Bank's 88 employees on Guam and Saipan. Between now and the closing of the transaction, expected fourth quarter 2001 and subject to regulatory approval, First Hawaiian will impose a freeze on hiring in its branches in order to retain as many of the staff of Union Bank as possible.
Honolulu-based First Hawaiian Bank, with $7.5 billion in assets, has operated on Guam since 1970. It has had a branch on Saipan since 1997. First Hawaiian, which also has 56 branches in Hawaii, is a subsidiary of BancWest Corporation, a Hawaii-based bank holding company with assets of $19.4 billion as of March 31, 2001.
BancWest's other major subsidiary is Bank of the West, which is headquartered in San Francisco and has 193 branches in six Western states.
Based in San Francisco, Union Bank of California is the principal subsidiary of UnionBanCal Corporation (NYSE:UB), a bank holding company with assets of $35.8 billion as of March 31, 2001. The third largest commercial bank in California, it has 244 banking offices in California, six banking offices in Oregon and Washington and 18 international facilities.
