The company on Monday said it would merge its profitable, 19-branch Pioneer Federal subsidiary into First Hawaiian Bank, in a deal that would wipe out the 106-year-old Pioneer Federal corporate name.

First Hawaiian said that none of Pioneer's 202 employees would lose their jobs in the merger.

The bank holding company said it hopes to complete the deal early next year, pending regulatory approval.

"It's all part of one big, changing competitive situation," said Gerry Keir, First Hawaiian spokesman.

First Hawaiian acquired Pioneer Federal in August 1993 in a deal valued at $87 million. Since then, the bank holding company has operated the thrift as a separate subsidiary.

Founded in 1890, Pioneer lists assets of $886 million. First Hawaiian Bank, with 59 branches and 3,000 employees, has assets of $6 billion.

Under the merger, all Pioneer loans, deposits and checking accounts will become First Hawaiian accounts. Terms of existing Pioneer certificates of deposit will be unchanged while all Pioneer credit cards will be converted into First Hawaiian cards.

Four Pioneer branches - Manoa, Eaton Square in Waikiki and two Big Island locations - will be converted into First Hawaiian Bank branches.

Lily Yao, Pioneer Federal's chairwoman and chief executive officer, will remain with First Hawaiian but her title has not yet been set, Keir said.

The deal could mean substantial savings for First Hawaiian. In addition to the branch closings, the deal would eliminate duplication in administrative costs and other expenses, said Richard Dole, research director at Fry & Co., a local stock brokerage firm.

"And if they're able reduce costs, they'll be able to improve earnings," Dole said.

Proposed regulatory changes to the nation's banking industry also played a role. Congress is mulling legislation that would virtually make banks identical to a savings and loan, said Walter Dods, First Hawaiian's chairman and chief executive officer.

"(Because) of Pioneer Fed's limited size, combining it with First Hawaiian Bank will create a larger, more efficient entity," Dods said.