Guaranty Federal Renews Processing Pact
River Forest and First Busey Also Conclude Outsourcing Agreements
Several community banks and medium-sized institutions last week announced commitments for their data to be processed by contractors.
The largest such deal, of a type known in the industry as outsourcing, involved $7.5-billion asset Guaranty Federal Savings Bank. The Dallas-based thrift announced that it had renewed its contract for data processing services by Systematics Information Services Inc.
Guaranty Federal officials said it signed a five-year contract with Systematics under which the Little Rock, Ark., company will continue to run Guaranty's computer center in Austin, Tex. Systematics will also take over the institution's data network and management report distribution.
Guaranty, which has 94 offices in Texas, turned over its data processing operations to Systematics in 1987 when it was formed through the merging of three savings and loan institutions.
Aid in Expansion
Guaranty has continued to expand, acquiring several institutions in the past few years. Systematics has played a role in converting the back-office operations of the acquired institutions over the Guaranty's data center.
Meanwhile, River Forest Bancorp., a $1.1 billion seven-bank holding company based in River Forest, Ill., renewed its contract with EDS Corp., Dallas. Under the new agreement, EDS will convert the bank's four newly acquired institutions and provide full data processing services for all seven banks.
EDS will also provide item capture and print services for the bank and 16 other institutions.
First Busey Corp., a $540 million four-bank holding company based in central Illinois, also signed a contract with EDS for data processing services, including branch automation, item processing, and printing services.