BancWest buying Mainland company
By Kelly Yamanouchi
Advertiser Staff Writer
First Hawaiian Bank parent BancWest Corp. said yesterday it is acquiring Mainland bank Community First Bankshares Inc. for $1.2 billion.
Community First Bankshares is the parent company of Community First National Bank, which has 155 branches in 12 states in the West, Southwest and Midwest.
Honolulu-based BancWest's principal subsidiaries are First Hawaiian and Bank of the West, which operates in the western region of the Mainland.
The acquisition means Community First branches will become part of Bank of the West later this year, according to BancWest's announcement. The move will add 10 states to Bank of the West's network of 296 branches in six Western states, the product of 13 acquisitions since 1990.
First Hawaiian has 56 branches in Hawai'i, two in Guam and one in Saipan. First Hawaiian was not named as a party affected by the acquisition in the BancWest statement.
As of the end of last year, Community First Bankshares had assets of $5.5 billion, $4.4 billion in deposits and $3.3 billion in loans. The company earned $75 million last year.
BancWest is buying the company for $32.25 per share in cash, a $1.2 billion price equal to 16 times 2003 earnings and a 14 percent premium to the average closing stock price of Community First over the past three months, according to the companies' statement. Community First shares closed at $28 yesterday.
The boards of Community First Bankshares, BancWest and its parent BNP Paribas have approved the transaction. The merger must also be approved by Community First shareholders and federal and state banking regulators. Upon regulatory approval, the merger is expected to close in the third quarter, when the Community First branches will become part of Bank of the West.
The acquisition will bring BancWest's assets from $38.4 billion to $44 billion. It will have 500 branches and 3.4 million accounts in 17 states, Guam and Saipan. BancWest earned $436.6 million last year and said it is among the 10 largest banks in the world based on asset size.
Walter Dods Jr., BancWest chairman and chief executive, said the deal will allow the bank to serve a broader region of the United States and add to market share in California and New Mexico.
"Because there is virtually no geographic overlap in our branch structures, this is a transaction that's about building, not cutting," said Don McGrath, president of BancWest and chief executive of Bank of the West. "Although the sign on the door will change, Community First customers will find the same familiar faces in their branches."
Mark Anderson, Community First president and chief executive, said the transaction is a good value for shareholders and benefits employees.
Community First and Bank of the West say they both specialize in "community banking" with local decision-making and personal relationships. Community First also owns insurance agencies operated through Community First Insurance Inc.
