First Hawaiian parent, citing
savings, to combine operations

Star-Bulletin staff

In a move to save $60 million, First Hawaiian Bank parent BancWest Corp. is consolidating data processing for its Hawaii and West Coast banking operations in Honolulu.

The company has contracted with ALLTEL Corp., a Little Rock, Ark.-based technology company, to take over operations at First Hawaiian's data center in Kalihi on Aug 1.

ALLTEL Information Services, a subsidiary ALLTEL Corp., currently handles data for the 166-branch Bank of the West, which operates in California, Oregon, Washington, Idaho and Nevada.

All operations, including data from First Hawaiian's 56 branches, will be consolidated in Honolulu next year.

Walter A. Dods, Jr., chairman and chief executive officer at BancWest, said the move is expected to save the company $2.8 million this year and $60 million over the six-year contract.

BancWest said it will take a one-time, pre-tax charge of $6.9 million against third-quarter earnings because of the switch to ALLTEL.

According to ALLTEL, all 127 First Hawaiian employees working at the bank's data operations center are being offered jobs at equal pay.

But ALLTEL said it plans to reduce its Honolulu staff next year.

"Wherever possible, we're committed to doing this by attrition over a period of months," said John Amatangelo, senior vice president at ALLTEL.

BancWest spokesman Gerry Keir said it is too early to determine how many positions may be cut.

Dods said BancWest may create jobs in other areas at the Honolulu data center over the next 12 to 18 months as needs are determined.

ALLTEL Information Services does work with 800 banks.