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BancWest
branches out to
New Mexico

First Hawaiian's parent also
is expanding in Nevada as
part of its combined purchase
of 30 First Security outlets

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By Tim Ruel
Star-Bulletin

The parent company of First Hawaiian Bank said today it has agreed to buy 30 branches in New Mexico and Las Vegas by the first quarter of next year.

Honolulu-based BancWest Corp. is acquiring the branches from First Security Corp. of Salt Lake City, which must divest them because of a pending merging with San Francisco-based Wells Fargo & Co. The merger, expected to close early next month, depends on regulatory approval.

With the cash transaction, BancWest's California-based subsidiary Bank of the West will pick up 23 branches in New Mexico and seven in the Las Vegas area of Nevada.

This marks the first foray into New Mexico for Bank of the West, which currently operates 118 branches in Northern California, 30 in Oregon, nine in Washington, three in Idaho and two in Nevada.

An exact purchase price was not disclosed but BancWest said it would pay a premium of between 10 and 11 percent of the total branch deposits at the time of the deal's closing. At the current total deposit level of $1.2 billion, the premium would be between $120 million and $132 million.

The total sales price also will include the book value for the loans and branch locations, BancWest said.

BancWest expects to take a pre-tax charge of $4 million in the first quarter of 2001. The purchase should modestly improve earnings for next year, BancWest said.

"This is a unique opportunity in a fast-growing region that fits in with our Western acquisition strategy," said Walter A. Dods Jr., chairman and chief executive of BancWest. "Our subsidiary banks have successfully completed 10 mergers and integrations since 1990."

Bank of the West said it will offer jobs to all 245 employees of the 30 branches, and plans to create a regional administrative and support headquarters in Albuquerque, N.M., adding up to 25 more jobs.

BancWest, a regional bank-holding company with assets of $17.8 billion, would own a total of 251 branches with the purchase.

The bank's stock rose 38 cents to $18.81 in New York Stock Exchange trading. Today's announcement came after the market closed.