Profits improve for three LV bank operators

Friday, Jan. 18, 2002 | 10:52 a.m.

SUN STAFF AND WIRE REPORTS

Three financial organizations operating in Southern Nevada reported significant improvements in their fourth quarter earnings on Wednesday and Thursday.

BancWest Corp., the Honolulu, Hawaii-based parent company of Bank of the West and First Hawaiian Bank, on Wednesday reported fourth quarter net income of $63.5 million, a 13 percent increase from the same quarter one year ago.

"Considering the economic fallout from Sept. 11, our sustained progress is gratifying," said Walter A. Dods, Jr., BancWest chairman and chief executive officer. "Bank of the West continues to grow at a strong double-digit percentage in Western states and First Hawaiian Bank also increased earnings despite the economic hit the islands have taken since September."

BancWest entered the Las Vegas market by buying seven branches formerly operated by First Security Bank in September 2000. The sites were re-opened as Bank of the West branches on Jan. 16, 2001.

BancWest is a wholly owned subsidiary of BNP Paribas, France's largest listed banking group and seventh largest in the world.

Separately, Golden West Financial on Thursday reported record fourth quarter net income of $227,975, or $1.44 per share. That marked a 55 percent increase from the $149,192, or 93 cents per share, the company earned during the same quarter one year ago.

The Oakland, Calif.-based savings and loan holding company has two Southern Nevada branches operating as World Savings Bank. Overall, the company operates 462 locations in 38 states and is one of the largest thrift branch systems in the United States.

Marion Sandler, chairman and CEO of Golden West, said the company's strong fourth quarter was sparked by the 11 interest rate cuts made by the Federal Reserve Board last year.

"Our profit margin benefited from the sizeable decline in short-term interest rates experienced over the course of the year," said Sandler, who also cited higher loan fee income and gains on the sale of mortgages as factors in the company's performance.

Montgomery, Ala.-based Colonial BancGroup also announced record fourth quarter earnings Thursday.

The parent company of Colonial Bank of Nevada, which has five branches in Southern Nevada, reported quarterly net income of $31.9 million, or 28 cents per share, during the three months ended Dec. 31.

Operating earnings were $34.5 million, or 30 cents per share, also a company record and a 15.4 percent improvement from the same period last year.

"We are pleased and proud of this year's record earnings in the face of real economic adversity," said Robert Lowder, chairman and CEO of Colonial BancGroup. "We are focused on our strengths from a lending perspective and thus are not faced with the need for massive write-offs in syndicated loans, auto-leasing, indirect lending or subprime lending."

Colonial BancGroup operates 261 offices in six states. Its assets were $13.2 billion at the close of 2001.