BancWest subsidiary expands
By Rick Daysog
Advertiser Staff Writer
First Hawaiian Bank's sister company has agreed to buy the nation's 12th-largest thrift for $1.36 billion, in a deal that will expand the company's presence in the Midwest and other key Mainland markets.
BancWest Corp. said yesterday that its Bank of the West subsidiary signed a definitive agreement to acquire Omaha, Neb.-based Commercial Federal Corp., which operates 198 branches in seven states including Colorado, Arizona and Missouri.
The deal — which requires approval from Commercial Federal's shareholders and from state and federal regulators — will make Bank of the West the third-largest commercial bank based west of the Mississippi River.
"It's a logical extension of Bank of the West's expansion into the Midwest," said BancWest president and chief executive Don McGrath. "Commercial Federal operates in high-growth retail markets that complement our existing footprint and provide us with opportunities for additional fill-in acquisitions."
Bank of the West — which expects to complete the deal in the fourth quarter — will pay $34 for each share of Commercial Federal's stock plus a 50-cent-per-share dividend at the deal's closing.
Shares of Commercial Federal closed at $25.94 on the New York Stock Exchange yesterday.
Founded in 1887, Commercial Federal is the parent of Commercial Federal Bank, which lists assets of $10.4 billion, deposits of $6.5 billion and loans of $7.8 billion.
Bank of the West, which was founded in 1874 as Farmers National Gold Bank, lists assets of $41 billion and operates 480 branches in 16 western and central states. As a result of the acquisition, Bank of the West will have about $64 billion in assets and will serve more than 4 million customers at 739 branches and offices in 20 states.
Bank of the West and First Hawaiian Bank are subsidiaries of BancWest, which is based in Honolulu and is the seventh-largest bank holding company in the western United States.
BancWest, a wholly owned subsidiary of BNP Paribas of France, has acquired more than a dozen Mainland financial institutions during the past 15 years, including its purchase of Los Angeles-based United California Bank in 2002 and last year's acquisition of Fargo, N.D.-based Community First Bancshares.
Reach Rick Daysog at rdaysog@honoluluadvertiser.com or 525-8064.
