BancWest’s earnings
riseThe Honolulu-based parent of
First Hawaiian Bank has topped
more than $40 billion in assets
First Hawaiian Bank's parent exceeded $40 billion in assets for the first time en route to a 6.6 percent increase in second-quarter earnings.
BancWest Corp. yesterday reported net income of $114.8 million compared with $107.7 million during the same period in 2003.
"We continue to generate significant organic growth," BancWest Chairman and Chief Executive Walter Dods Jr. said yesterday, referring to the company's growth rate without acquisitions. "In this coming quarter, we are awaiting regulatory approval to complete acquisitions that will make BancWest the seventh-largest bank holding company in the western United States."
Earlier this year, BancWest, which also is the parent company of Bank of the West, agreed to acquire Fargo, N.D.-based Community First Bankshares Inc. for $1.2 billion and Stockton, Calif.-based USDB Bancorp for $245 million.
"With completion of these acquisitions, BancWest will operate in 10 additional states," said Don McGrath, president and chief operating officer of BancWest and president and CEO of Bank of the West.
BancWest will have more than 525 branches in 17 states, Guam and Saipan after the acquisitions.
BancWest's assets reached $40.3 billion at the end of the quarter after climbing 10.5 percent from $36.4 billion a year ago. Total deposits rose 11.7 percent to $28 billion from $25 billion. Loans and leases grew 8.7 percent to $27.2 billion from $25.1 billion.
Credit quality improved for BancWest as its nonperforming assets represented 0.52 percent of loans and foreclosed properties as of June 30 compared with 0.59 percent at the end of last year and 0.75 percent a year earlier.
BancWest's allowance for credit losses improved last quarter to 1.46 percent of total loans and leases from 1.52 percent at the end of December and 1.57 percent a year earlier.
Net interest margin, which reflects the difference of what the bank pays depositors and what it brings in from loans, slipped to 3.88 percent from 4.37 percent a year ago. Net interest income, however, rose 0.8 percent to $322.3 million as loans and leases gained 13.6 percent.
Noninterest income, which includes revenue from service charges and fees, rose 7.7 percent to $110 million while noninterest expense edged up 1 percent to $232.2 million.
No earnings per share were reported since BancWest is a subsidiary of French banking giant BNP Paribas SA.