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BancWest adding
68 branches

The First Hawaiian parent is
expanding in Utah
and Idaho

By Russ Lynch
Star-Bulletin

BancWest Corp., the Honolulu-based parent of First Hawaiian Bank in Hawaii and Bank of the West in California, said today it has agreed to buy 68 bank branches in Utah and Idaho, with deposits of $2.1 billion and loans of $660 million.

Walter A. Dods Jr., BancWest chairman and chief executive officer, said BancWest expects to pay about $200 million for the deposits and about another $40 million for the real estate of the branches, 60 in Utah and eight in Idaho.

The sellers are Zions Bancorporation and First Security Corp., which are in the process of merging and need to dispose of some branches where the merged company would violate Justice Department rules about bank domination. The branches will become Bank of the West branches.

BancWest will pay a premium of 9.8 percent for the deposits, an amount of cash that will be finalized depending on the deposit mix at the time of the acquisition. Loans will be acquired at book value and the physical properties of the branches will be paid for at a price to be decided by appraisal.

In a telephone interview from Salt Lake City, where he is wrapping up some of the details, Dods called BancWest's success in picking up the branches a "coup" because his company won out against a number of major banks that were bidding for the branches.

"We immediately come in as the second-largest bank in Utah, a very strong market," he said. When the deal closes, which is expected to happen in the second quarter subject to regulatory approvals, BancWest will have a 12 percent share of the Utah market, he said.

Utah has a strong in-migration and low unemployment, showing a strong economy, he said. "We're really excited about this. It fits with our plan to expand in the West," Dods said.

The Zions and First Security branches will become branches of San Francisco-based Bank of the West, bringing its total to 230 branches.

In Utah, the branches being acquired include 17 in the Salt Lake City area, eight in the Provo-Orem area, five in Logan and 30 elsewhere in the state. Eight branches in Idaho are included in the deal.

Don J. McGrath, San Francisco-based president of BancWest and Bank of the West, said Bank of the West will offer jobs to the 432 employees of the Zions and First Security branches. McGrath said the changeover will have little effect on customers and employees of the Zions and First Security branches.

BancWest has assets of $16.7 billion. Its First Hawaiian Bank subsidiary has 56 branches in Hawaii, two in Guam and one in Saipan, with total assets of $7.1 billion. The Bank of the West subsidiary has 118 branches in Northern California, 30 in Oregon, nine in Washington state, three in Idaho and two in Nevada, with total assets of $9.5 billion.

Dods said BancWest's total assets after the acquisition will be about $19 billion.