BancWest's Quarterly Net Income Up 55.4% to $98.6 Million; Annual Net Income Totals $357.6 Million, a 40.4% Increase
(Honolulu, Hawaii, January 15, 2003) – BancWest Corporation today reported net income of $98.6 million for the fourth quarter of 2002, up 55.4% from the same quarter of 2001 due largely to this year’s acquisition of United California Bank. For the full year of 2002, net income was $357.6 million, up 40.4% from 2001.
BancWest, a subsidiary of BNP Paribas, is the parent company of Bank of the West and First Hawaiian Bank.
BancWest’s core earnings totaled $106.1 million for the fourth quarter of 2002 (up 67.2% from the same quarter of 2001) and $376.7 million for the full year, up 55.5% from 2001.
“Core earnings” (in thousands) is calculated as follows:
|
|
Fourth quarter |
Full year |
||
|
|
2002 |
2001 |
2002 |
2001 |
|
Net income |
$98,596 |
$63,467 |
$357,649 |
$254,804 |
|
Adjustments: |
|
|
|
|
|
Integration costs |
$1,551 |
---- |
$10,381 |
$2,342 |
|
Non-recurring costs |
---- |
---- |
$2,646 |
---- |
|
Minority interest |
$5,982 |
---- |
$5,982 |
---- |
|
Net Concord gain |
---- |
---- |
---- |
($14,915) |
|
Core earnings |
$106,129 |
$63,467 |
$376,658 |
$242,231 |
The integration costs were associated with the acquisition of United California Bank during 2002 and the acquisition of branches in New Mexico and Nevada in 2001. “Minority interest” represents earnings on the approximately 15% direct ownership of Bank of the West by BNP Paribas; the remaining 85% is owned by BancWest Corporation, a subsidiary of BNP Paribas. “Net Concord gain” represents the net effect of the sale of shares in Concord EFS, Inc., partially offset by additional provisions for credit losses and other nonrecurring costs recorded in 2001.
“Both First Hawaiian Bank and Bank of the West had record years in 2002. This level of earnings is a remarkable jump from where we were not so long ago. The substantial increase in our net income is a tribute both to our internal growth and our smooth acquisition of United California Bank,” said Walter A. Dods, Jr., BancWest Chairman and Chief Executive Officer.
“With the acquisition of United California Bank, we doubled our presence in the state and we’re a visible, competitive force in the Los Angeles area. Bank of the West now has statewide customer convenience -- from San Diego all the way to the little town of Paradise, 150 miles north of San Francisco,” said Don McGrath, President and Chief Operating Officer of BancWest and President and Chief Executive Officer of Bank of the West.
United California, which had been the largest Los Angeles-based bank, was acquired by BancWest on March 15, 2002. More than 100 former UCB branches were rebranded with the Bank of the West name in September. United California, with assets of $10 billion and branches throughout California, was acquired from UFJ Holdings of Tokyo in a $2.4-billion cash transaction.
Most of the significant increases from 2001 outlined below resulted from the United California Bank acquisition:
Assets, loans, deposits. BancWest Corporation had total assets of $34.7 billion at December 31, 2002. Loans and leases totaled $24.2 billion, up 59.2%. Deposits were $24.6 billion, up 60.1%.
Credit quality. BancWest’s nonperforming assets were 1.01% of loans and foreclosed properties at December 31, 2002, compared to 1.12% at September 30, 2002.
Loan loss reserve. BancWest’s allowance for credit losses represented 1.58% of total loans and leases at December 31, 2002, compared to 1.60% at September 30, 2002. During the quarter, the provision for credit losses was $26.1 million.
Continued revenue growth. Overall revenues for the quarter were up 47.1% from the same quarter a year earlier.
Higher net interest income. Net interest income grew 52.6% over the fourth quarter of 2001, due to 60.2% growth in average loans and leases, primarily due to the United California Bank acquisition, as well as the effects of last year’s interest rate reductions. Net interest margin for the quarter was 4.64%, compared with 4.84% for the same quarter a year ago.
* * *
About BancWest: BancWest Corporation (www.bancwestcorp.com) is a bank holding company with assets of $34.7 billion. It is a wholly owned subsidiary of Paris-based BNP Paribas. BancWest is headquartered in Honolulu, Hawaii, with an administrative headquarters in San Francisco, California. BancWest serves 1.8 million customers in seven states, Guam and Saipan. Its principal subsidiaries are Bank of the West (297 branches in California, Oregon, New Mexico, Nevada, Washington state and Idaho) and First Hawaiian Bank (61 branches in Hawaii, Guam and Saipan).
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