BancWest Posts Earnings of $149.1 Million, Up 30.0% From Second Quarter of 2004
July 21 2005 - 6:00PM
PR Newswire (US)
BancWest Posts Earnings of $149.1 Million, Up 30.0% From Second
Quarter of 2004 HONOLULU and SAN FRANCISCO, July 21 /PRNewswire/ --
BancWest Corporation, parent company of Bank of the West and First
Hawaiian Bank, today reported net income of $149.1 million for the
second quarter of 2005, up 30.0% from the same quarter last year.
For the first six months of 2005, BancWest's net income was $285.8
million, up 25.4% from the same period of 2004. "Continued organic
growth, plus the impact of last year's acquisitions of Community
First Bank and Union Safe Deposit Bank, produced yet another
earnings record for BancWest. Both Bank of the West and First
Hawaiian Bank continue to post double-digit percentage growth,"
said Don J. McGrath, President and Chief Executive Officer of
BancWest. "We look forward to continuing this growth with the
recently announced acquisition of Commercial Federal Corporation.
This acquisition will solidify BancWest's position in the Midwest
and add significant market share in several major metropolitan
areas including Denver, Omaha and Des Moines." BancWest is a wholly
owned subsidiary of BNP Paribas. Net income for the quarter ended
2005 and 2004 included after-tax restructuring expenses of zero and
$1.6 million, respectively, related to the acquisition of Community
First Bankshares, Inc. during the fourth quarter of 2004. Excluding
these expenses, net income would have increased 28.2% for the
second quarter from the same period in 2004. Net income for the
first six months of 2005 and 2004 included after-tax restructuring
expenses of $3.2 million and $1.6 million, respectively, from the
acquisitions of Community First and USDB Bancorp last year.
Excluding these expenses, net income would have increased 25.9%
from the same period a year earlier. BancWest Second-Quarter
Results: Assets, loans, deposits. BancWest had total assets of
$52.5 billion at June 30, 2005, up 30.4% from a year earlier. Loans
and leases totaled $34.0 billion, up 24.9%. Deposits were $34.6
billion, up 23.8%. The increases came both from internal organic
growth and the acquisitions completed in the fourth quarter of
2004. Credit quality. BancWest's nonperforming assets were 0.42% of
loans and foreclosed properties at June 30, 2005, an improvement
from 0.52% a year earlier. Loan loss reserve. Consistent with the
improvement in credit quality, BancWest's allowance for credit
losses was 1.25% of total loans and leases at June 30, 2005, a
reduction from 1.46% a year earlier. Net interest income for the
quarter was $394.9 million, up 22.5% from the second quarter of
2004. Net interest margin was 3.66% compared with 3.88% for the
same quarter a year ago. Noninterest income, at $133.2 million,
increased 21.1% from the second quarter of 2004. Noninterest
expense was $283.6 million for the quarter, up 22.1% from the same
quarter a year ago, due largely to the acquisitions. Excluding
merger-related expenses of zero and $2.8 million for the 2005 and
2004 quarter, respectively, noninterest expense increased 23.6%.
The provision for loan and lease losses for the quarter was $3.2
million, compared with $11.9 million in the second quarter of 2004.
The reduction was due to continued improvement in the quality of
the portfolio of loans and leases. Commercial Federal Acquisition
BancWest announced on June 13 that its Bank of the West subsidiary
had signed a definitive agreement to acquire Commercial Federal
Corporation (NYSE:CFB) in a cash transaction valued at $1.36
billion. Bank of the West will pay $34 for each Commercial Federal
share, with a special 50-cent-per-share dividend paid at closing.
Omaha-based Commercial Federal is the parent company of Commercial
Federal Bank, the nation's 12th-largest thrift, which operates 198
branches in seven states in the Midwest, Colorado and Arizona. As
of March 31, 2005, Commercial Federal Corporation had total assets
of $10.4 billion, deposits of $6.5 billion and loans of $7.8
billion. In 2004, the company earned $76.4 million. After the deal
closes, Commercial Federal branches will become part of Bank of the
West, which will become the third largest commercial bank
headquartered west of the Mississippi River. The acquisition will
add three new states (Missouri, Oklahoma and Kansas) to BancWest's
branch footprint. Following the acquisition, BancWest will have
approximately $64 billion in assets and serve more than 4 million
customer accounts through 737 locations in 20 states. The boards of
directors of BNP Paribas, BancWest and Commercial Federal
Corporation have approved the transaction. The merger requires
approval from Commercial Federal shareholders and federal and state
banking regulators. Once all approvals have been received, the
merger is expected to close in the fourth quarter of this year.
About BancWest: BancWest Corporation (http://www.bancwestcorp.com/)
is a financial holding company with assets of $52.5 billion. It is
a wholly owned subsidiary of BNP Paribas
(http://www.bnpparibas.com/), an international financial services
group. BancWest is headquartered in Honolulu, Hawaii, with an
administrative headquarters in San Francisco, California. Its
principal subsidiaries are Bank of the West (478 banking locations
in Arizona, California, Colorado, Idaho, Iowa, Minnesota, Nebraska,
New Mexico, Nevada, North Dakota, Oregon, South Dakota, Utah,
Washington, Wisconsin and Wyoming) and First Hawaiian Bank (61
branches in Hawaii, Guam and Saipan). This release contains
forward-looking statements, including statements regarding
anticipated timing of the Commercial Federal Corporation
transaction and possible performance of the combined company after
the transaction is 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 that regulatory
approvals may be delayed or denied or that burdensome conditions
may be imposed in connection with such approvals; (2) the
possibility of customer or employee attrition following this
transaction; (3) failure to fully realize expected cost savings
from the transaction; (4) lower than expected revenues following
the transaction; (5) problems or delays in bringing together the
two companies; (6) the possibility of adverse changes in global,
national or local economic or monetary conditions, (7) competition
and change in the financial services business, and (8) other
factors described in our recent filings with the Securities and
Exchange Commission. Those factors or others could result, for
example, in delay or termination of the transaction discussed
above. Readers should carefully consider those risks and
uncertainties in reading this release. Except as otherwise required
by law, BancWest and Commercial Federal Corporation disclaim any
obligation to update any forward-looking statements included herein
to reflect future events or developments. In connection with the
proposed transaction, Commercial Federal will be filing proxy
statements and other materials with the Securities and Exchange
Commission. Investors are urged to read the proxy statement and
these materials when they are available because they contain
important information. Commercial Federal and its officers and
directors may be deemed to be participants in the solicitation of
proxies with respect to the proposed transaction matters.
Information regarding such individuals is included in Commercial
Federal's proxy statements and Annual Reports on Form 10-K
previously filed with the Securities and Exchange Commission, and
in the proxy statement relating to the merger when it becomes
available. Investors may obtain a free copy of the proxy statements
and other relevant documents when they become available as well as
other materials filed with the Securities and Exchange Commission
concerning Commercial Federal and these individuals at the
Securities and Exchange Commission's website at
http://www.sec.gov/. These materials and other documents may also
be obtained for free from Commercial Federal Corporation by sending
an e-mail to . DATASOURCE: BancWest Corporation CONTACT: Gerry Keir
for BancWest Corporation, +1-808-525-7086, Web site:
http://www.bancwestcorp.com/ http://www.bnpparibas.com/
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