Exhibit 99
Len Cereghino & Co. CLIENT: UNITED SECURITY
BANCORPORATION
CORPORATE INVESTOR RELATIONS CONTACT: Richard C. Emery
2605 WESTERN AVE. President & CEO
SEATTLE, WA 98121 USBN (509) 467-6949
(206) 448-1996 Wes Colley,
President & Chairman
NEWS RELEASE Bank of the West
(509)527-3800
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UNITED SECURITY BANCORPORATION TO ACQUIRE BANK OF THE WEST:
BANK HAS FOUR BRANCHES WITH $104 MILLION ASSETS IN SOUTHEAST
WASHINGTON
Spokane, WA-November 11, 1998-United Security
Bancorporation (NASDAQ: USBN) today announced it has reached
a definitive agreement to acquire Bancwest Financial
Corporation, the holding company for Bank of the West, for
1.85 million shares of USBN stock valued at approximately
$33.3 million. The acquisition is expected to be completed
during the first quarter of 1999, subject to approval by
regulatory agencies and shareholders of both companies.
USBN expects the acquisition to be accretive to earnings in
1999.
Bank of the West has its headquarters and two bank
branches in Walla Walla. Full service bank branches also are
located in the communities of Waitsburg and Dayton, east of
Walla Walla in southeastern Washington. Bank of the West
had approximately $104.3 million in total assets, $90.2
million in deposits, and $71.2 million in loans at September
30, 1998. United Security Bancorporation had total assets
of $404.7 million, total deposits of $354.8 million, and
loans of $285.0 million at September 30, 1998.
Bank of the West will retain its own name, staff, and
Board of Directors. It will join USBN's existing family of
community banks--United Security Bank, Home Security Bank,
Bank of Pullman, and Grant National Bank--as its fifth
independent banking subsidiary. Three Bank of the West
board members will join USBN's Board of Directors. With
this acquisition, USBN will have a total of 31 community
bank offices.
Based on an assumed market price for USBN common stock of
$18.00, Bancwest Financial shareholders will receive
approximately 4.7 shares of United Security Bancorporation
common stock for each fully diluted share of Bancwest common
stock they own. Total consideration paid will be
approximately $33.3 million--or about 2.8 times Bancwest's
shareholder equity at September 30, 1998. Bancwest's
393,300 outstanding shares (including options) are closely
held and do not trade on any exchange. The acquisition will
be tax free to shareholders and treated as a pooling of
interests transaction for accounting purposes.
"By every measure, Bank of the West exceeds the
performance of its peers," noted Richard C. Emery, President
and Chief Executive Officer of United Security
Bancorporation. "It is a very profitable and high-quality
organization, with an operating culture very much like ours.
We're very excited about this combination.
Bank of the West's return on average assets exceeded 2.00%
for the past three calendar years and its return on average
equity ranged from 18-25% during 1993-1997. The net
interest margin for 1997 and the first nine months of 1998
was 5.87%. Over the past five years, net loan losses have
averaged just 0.15% of total loans outstanding per year.
For the first nine months of 1998, Bank of the West's return
on assets was 2.20% and its return on equity was 20.75%.
The tangible equity to assets ratio was 11.4% and the
efficiency ratio was 48.8%.
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"With four full-service branches, Bank of the West has
extensive coverage of the Walla Walla market and its nearby
communities. Following completion of this merger, we will
combine the staff of our existing Home Security Bank branch
in Walla Walla with Bank of the West's branch there; there
will be no related layoffs and we believe our customers will
be better and more efficiently served through the combined
full-service branch," Emery said. USBN acquired its Walla
Walla branch when it purchased a package of five central
Washington Wells Fargo Bank branches in 1997.
"Combining with United Security is very positive for our
customers and the continued dynamic performance of Bank of
the West," noted Wes Colley, President and Chairman of
Bancwest Financial Corporation. "Our Board sought a
combination that would provide maximum investment liquidity
for our current shareholders while maintaining the high
quality service Bank of the West provides. USBN's record of
retaining the local names, staff, boards and customer
service of its bank subsidiaries was instrumental in our
decision to join them.
"Our senior management team has more than 120 years of
service at Bank of the West and is well known for its
dedication to the community, its banking prowess, and
skills. We pride ourselves on having a friendly, helpful
employee group who have continuously served the bank and its
communities," Colley added.
Walla Walla is the commercial hub of southeastern
Washington state, located near both Idaho and Oregon. Its
strengths include: a stable employment base, proximity to
the Columbia and Snake Rivers, a thriving and broad-based
agricultural industry, relatively low property costs, and
office and commercial space that it readily available and
competitively priced.
Bank of the West's diversified loan mix includes
approximately 31.4% agricultural loans, 39.0% commercial
loans, 11.0% consumer loans, and 18.6% in one-to-four family
residential mortgage loans.
United Security Bancorporation is a multi-bank holding
company. Its four banking subsidiaries include United
Security Bank (based in Spokane), Home Security Bank (based
in the Yakima Valley), Bank of Pullman (based in Pullman,
near the Idaho border), and Grant National Bank (based in
Ephrata). The Bancorporation currently has 27 branch
offices 26 in Central and Eastern Washington and one in
Idaho. USBN also owns USB Insurance, a full-line insurance
agency, USB Mortgage, a mortgage company, and USB Leasing, a
commercial leasing company. USBN closed at $16.56 in
trading yesterday, November 10, on NASDAQ's National Market
system.
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