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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/