Community First Bankshares (NASDAQ:CFBX)
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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/