First Hawaiian
expands in
Guam, Saipan

It will buy 3 branches there
from Union Bank of California

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By Rick Daysog
Star-Bulletin

First Hawaiian Bank will acquire Union Bank of California's Guam and Saipan operations, in a move that underscores the company's expansion plans.

The local bank signed a definitive agreement with San Francisco-based Union Bank to acquire its two Guam branches and its Saipan branch for an undisclosed price.

First Hawaiian said it will close the two Union Bank branches in Guam and transfer customer accounts to its branch in Maite, Guam. Guam banking law bars First Hawaiian from operating the two Union Bank branches, the company said.

The Union Bank branch in Saipan will be converted into a First Hawaiian branch.

The deal is expected to close during the fourth quarter, pending regulatory approval.

First Hawaiian said it hopes to offer jobs to most of Union Bank's 88 employees on Guam and Saipan.

"This is a wonderful opportunity to expand our commitment to Guam and Saipan, a region that we already know well from long experience," said Donald Horner, First Hawaiian's vice chairman.

In the deal, First Hawaiian will assume about $200 million in customer deposits, along with various loans from the Union Bank branches.

First Hawaiian also will process merchant credit card transactions for Union Bank customers in Guam and Saipan. First Hawaiian currently is the third-largest bank in Guam, behind the Bank of Guam and the Bank of Hawaii.