BancWest Posts Earnings of $117.2 Million, Up 4.4% From Third Quarter of 2003
21 Oktober 2004 - 1:00AM
PR Newswire (US)
BancWest Posts Earnings of $117.2 Million, Up 4.4% From Third
Quarter of 2003 Two Acquisitions Expected to Close November 1, 2004
HONOLULU, Oct. 20 /PRNewswire/ -- BancWest Corporation, parent
company of Bank of the West and First Hawaiian Bank, today reported
net income of $117.2 million for the third quarter of 2004, up 4.4%
from the same quarter of 2003. For the first nine months of 2004,
BancWest's net income was $345.0 million, up 7.2% from the same
period of 2003. Net income for the quarter and first nine months of
2004 included after-tax restructuring expenses of $3.4 million and
$5.0 million, respectively. Excluding these expenses, net income
would have increased 7.5% and 8.7% for the same periods. "Both
banks continued to generate solid organic earnings growth during
the quarter and our credit quality, which was already very good,
also continued to improve. Now, we're moving ahead with two
acquisitions that will expand Bank of the West's presence in the
Central Valley of California and introduce the bank's brand to 10
additional states as far east as the Great Lakes," said Walter A.
Dods, Jr., BancWest Chairman and Chief Executive Officer. On
October 15, 2004, the Federal Reserve Board approved BancWest's
acquisition of: * Community First Bankshares, Inc. (NASDAQ:CFBX),
parent company of Community First National Bank and Community First
Insurance, Inc., and * USDB Bancorp, parent company of Union Safe
Deposit Bank. Both transactions are expected to close on November
1, 2004. BancWest anticipates that Community First will be merged
into Bank of the West in December and Union Safe Deposit Bank will
be merged into Bank of the West in January. Following the
acquisitions, BancWest will be the seventh largest bank holding
company in the Western United States, with an estimated $49 billion
in assets and more than 530 branches in 17 Western and Midwestern
states, Guam and Saipan. "These are two complementary banks that
fit in well with our company both strategically and financially.
Although the signs on the door will change, Community First and
Union Safe Deposit customers will receive the same personal service
that they're used to, because that's been a Bank of the West
tradition for 130 years," said Don J. McGrath, President of
BancWest and Chief Executive Officer of Bank of the West. BancWest
third-quarter results: Assets, loans, deposits. BancWest had total
assets of $41.4 billion at September 30, 2004, up 10.6% from a year
earlier. Loans and leases totaled $27.8 billion, up 10.2%. Deposits
were $28.4 billion, up 9.6%. Credit quality. BancWest's
nonperforming assets were 0.44% of loans and foreclosed properties
at September 30, 2004, an improvement from 0.71% at September 30,
2003 and 0.59% at December 31, 2003. Loan loss reserve. BancWest's
allowance for credit losses was 1.39% of total loans and leases at
September 30, 2004, compared to 1.54% at September 30, 2003 and
1.52% at December 31, 2003. Net interest income for the quarter was
$330.6 million -- up 0.1% from the third quarter of 2003, due to
11.3% growth in average earning assets, offset by a lower net
interest margin for the quarter. Net interest margin was down to
3.83% compared with 4.24% for the same quarter a year ago.
Noninterest income, at $104.8 million, increased 4.0% from the
third quarter of 2003. Noninterest expense was $234.5 million for
the quarter, up 5.2% from the same quarter a year ago. Excluding
$5.8 million of merger-related expenses, noninterest expense was up
2.6%. Community First Acquisition In March 2004, BancWest agreed to
pay $32.25 in cash for each share of Community First Bankshares, a
total of $1.2 billion. Community First Bankshares is the parent
company of Community First National Bank, which operates 156
branches in 12 states in the Southwest, Rocky Mountains, Great
Plains and east to Minnesota, Iowa and Wisconsin. As of June 30,
2004, Community First Bankshares had total assets of $5.6 billion,
deposits of $4.4 billion and loans of $3.4 billion. USDB Bancorp
Acquisition In April 2004, BancWest Corporation agreed to acquire
USDB Bancorp, parent company of Union Safe Deposit Bank, in a cash
transaction valued at $245 million. USDB Bancorp is headquartered
in Stockton, California, and operates 19 Union Safe Deposit Bank
branches in San Joaquin and Stanislaus Counties in the Central
Valley. As of June 30, 2004, USDB Bancorp had total assets of $1.1
billion, deposits of $851 million and loans of $663 million. Bank
of the West, the third-largest commercial bank headquartered in
California, already has 222 branches in the state, including 11
branches in San Joaquin and Stanislaus Counties. About BancWest:
BancWest Corporation (http://www.bancwestcorp.com/) is a financial
holding company with assets of $41.4 billion. It is a wholly owned
subsidiary of Paris-based BNP Paribas. BancWest is headquartered in
Honolulu, Hawaii, with an administrative headquarters in San
Francisco, California. Its principal subsidiaries are Bank of the
West (297 branches in California, Oregon, New Mexico, Nevada,
Washington state and Idaho) and First Hawaiian Bank (61 branches in
Hawaii, Guam and Saipan). This release contains forward-looking
statements, including statements regarding anticipated timing of
the Community First and USDB Bancorp transactions and possible
performance of the combined company after the transactions are
completed. Such statements reflect management's best judgment as of
this date, but they involve risks and uncertainties that could
cause actual results to differ materially from those presented.
Factors that could cause such differences include, without
limitation, (1) the possibility of customer or employee attrition
following the transactions; (2) failure to fully realize expected
cost savings from the transactions; (3) lower than expected
revenues following the transactions; (4) problems or delays in
bringing together the companies; (5) the possibility of adverse
changes in global, national or local economic or monetary
conditions, (6) competition and change in the financial services
business, and (7) other factors described in BancWest's recent
filings with the Securities and Exchange Commission. Readers should
carefully consider those risks and uncertainties in reading this
release. Except as otherwise required by law, BancWest, USDB
Bancorp and Community First Bankshares disclaim any obligation to
update any forward- looking statements included herein to reflect
future events or developments. DATASOURCE: BancWest Corporation
CONTACT: Gerry Keir, +1-808-525-7086, , for BancWest Corporation
Web site: http://www.bancwestcorp.com/
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