Three community banks have signed multiyear servicing contracts with Systematics Financial Services Inc., Little Rock.

The three are Guaranty Bank and Trust Co., Denver; Family Bank of Hallandale, Fla.; and Sabine State Bank and Trust Co., Many, La.

The five-year contracts are for software and services.

Systematics declined to comment on the financial terms of the deals.

The $150 million-asset Guaranty Bank was forced to look elsewhere when its system vendor, Software Alliance Corp. of Berkeley, Calif., decided to discontinue developing software for midrange systems.

"We selected Systematics' Horizon Banking System because the platform offers us the tools we need to provide quality service and remain competitive for years to come," said Sharon Laurent, a senior vice president.

The bank looked at 10 different vendors and decided to sign with Systematics because if offered "the best approach" to processing. The system will be switched over in September. The bank will operate it using an International Business Machines Corp. AS/400 midrange computer.

Moving In-House

For $165 million-asset Family Bank, the move to Systematics coincides with a decision to bring data processing in-house.

The bank, which also will use an IBM AS/400, expects the system to be operational sometime in August.

Theresa Sanchez, operations officer at Family Bank, said the move to Systematics is a cost-effective, practical solution.

"By going with the Systematics solution we will be able to meet and exceed our needs that have increased through our growth," she said. "It is a much more innovative solution.

"We needed to have control, to develop and do things ourselves," she said. "Now we will have the information at our fingertips and do things the way we want without having to wait for an outsourcer."

Sabine Bank and Trust, which already runs data processing operations in-house, says Horizon will provide more flexibility and better productivity.

"Horizon will allow us to be more flexible while being able to cut our processing time down from eight hours to four," said Jeffrey Austin, chief financial officer and controller of the $107 million-asset bank.

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