Bank of the West and Commercial Federal Bank don’t call Colorado home.
But the state is front and center in why the San Francisco-based regional bank and the Omaha-based thrift are coming together in a $1.36 billion acquisition.
“Colorado is one of the key factors in the transaction,” said Don McGrath, president and chief executive of BancWest Corp., a holding company and wholly owned subsidiary of French banking giant BNP Paribas. Bank of the West is a subsidiary of BancWest Corp., which also runs First Hawaiian Bank, based in Honolulu.
McGrath, visiting Commercial Federal employees in Denver on Tuesday, said Commercial Federal had an attractive network of 39 mostly Front Range branches.
Those locations beef up the Western Slope and more rural locations BancWest acquired last year in its $1.2 billion purchase of North Dakota-based Community First Bankshares Inc.
Combined, the two banks will have 96 branch locations, about $4 billion in assets and 1,200 employees in Colorado.
“This will be one of our major market areas,” McGrath said.
No job cuts are expected in the state, although an overlapping branch or two in more remote areas may close, McGrath said.
“They are two good companies from our perspective,” said Don Childears, president and CEO of the Colorado Bankers Association. “There are plenty of pressures for banks to consolidate and find efficiencies.”
Tom Honig, who heads Wells Fargo’s Colorado operations, said, “This kind of activity is indicative of the competitive environment we have here in Colorado in banking throughout the state.”
Wells Fargo is the largest bank in the state with 130 branches.
Bank of the West, represented by a bear reminiscent of the one on the California flag, has been seeking a signature location downtown.
Commercial Federal’s prominent location on the corner of 17th and California streets could fit the bill.
BancWest announced late Monday that it would pay $34 for each Commercial Federal share, plus a 50-cent-a-share dividend at closing.
The combined banks would have approximately $64 billion in assets, 4 million customer accounts and 739 locations in 20 states.
Staff writer Aldo Svaldi can be reached at 303-820-1410 or asvaldi@denverpost.com.
