Bank of the West Sets $30 Billion Goal for Communities; Loans, Investments and Contributions Will Benefit Lower Income Individuals in Six States.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--March 27, 2002

Bank of the West today announced a goal of $30 billion in loans, investments, contributions and services to low- and moderate-income individuals, small businesses and community-based organizations in its service areas over the next 10 years. The goal established by the bank's Board of Directors acknowledges that Bank of the West is doubling in size in California and will play a larger role in community development in its six-state service area.

The recent acquisition of United California Bank (UCB, formerly Sanwa Bank California and Tokai Bank of California) by Bank of the West's holding company, BancWest Corporation, was an impetus to create the broad plan, said Don J. McGrath, Bank of the West president and CEO, and president of BancWest Corporation. BancWest will merge UCB into Bank of the West.

"We believe we have an obligation to help improve the social and economic health of the communities where we operate," McGrath said. "It's the right thing to do, and we know that it's good business, too."

"This goal was developed as part of our planning for the integration of the Bank of the West and United California Bank networks later this year," McGrath added. "Both banks have a long history of community service and we will expand upon that tradition. This is a large goal for a bank of our size, and one that acknowledges we will now become a larger participant in the region's economy."

As a result of the merger, Bank of the West will become a $25 billion-asset bank with approximately 300 branches in California, Oregon, Washington, Idaho, Nevada and New Mexico. The merger marks Bank of the West's entry to the retail banking market in southern California, where United California Bank has nearly 80 branch locations.

Bank of the West has long been a leader in the development of housing for low- to moderate-income individuals. This has been through loans, investment in intermediaries and participation of senior executives in such organizations as the California Community Reinvestment Corporation, California Environmental Redevelopment Fund, Merritt Capital and the Low Income Housing Fund. United California Bank has played a similar role in the California communities it serves.

As part of its objective to serve inner cities and low- to moderate-income individuals, Bank of the West presently operates 91 branches in low- to moderate-income census tracts. The bank will study the feasibility of opening additional service points in similar communities. The bank will also participate in the electronic benefits transfer program in California and other states that offer this service.

McGrath said specific objectives within the 10-year goal could change in response to unforeseeable circumstances or credit conditions. He added that components of the plan were determined after consultation with or comment from more than 50 community groups and nonprofit service providers in the markets served by the bank. (Note to Editors: list available on request)

Components of the goal are:

-- Residential Mortgage Loans -- The bank plans to originate and purchase $4.5
billion in one-to-four family residential mortgages for low- and
moderate-income borrowers, minorities, and residents of low- to moderate-income
census tracts. Bank of the West often purchases mortgages made in low- and
moderate-income census tracts from other lenders.

-- Small Business/Farm Loans -- The bank has a $13 billion goal for small
business loans ($1 million and under), SBA loans and small farm loans ($500,000
and less). The bank's SBA credit and business development staff will conduct
outreach programs for minority- and women-owned businesses to achieve this.
Micro-loans of less than $30,000 each will total $250 million.

-- Commercial Loans -- The bank makes commercial loans for construction, real
estate, working capital and long-term financing to larger businesses, many to
companies and nonprofit organizations in lower-income areas. To assist in
stabilizing employment and services in these areas, the bank plans to lend $5
billion (in amounts exceeding $1 million) to larger businesses in low- to
moderate-income census tracts.

-- Community Development Loans -- The bank plans to grow in the community
development market, lending $2 billion as sole lender or in partnerships, for
affordable housing including multi-family rentals. This will include loans for
organizations serving primarily low- to moderate-income individuals, promoting
community economic development and revitalizing low- to moderate-income areas.
The bank will also finance rehabilitation of contaminated properties in these
areas.

-- Consumer Loans -- Bank of the West offers a variety of consumer products
including vehicle loans and leases, home equity loans and lines of credit,
personal loans and overdraft protection. The bank will make $4.2 billion in
consumer loans and related products to low- and moderate-income individuals and
in low- and moderate-income census tracts.

-- Faith-Based Loans -- The bank is the nation's leading bank lender to
churches and other religious institutions. In the belief that faith-based
organizations enhance the social and moral environment of our communities and
provide critical social services, the bank has established a target of $1
billion in faith-based lending by 2012.

-- Community Development Investments -- The bank has set 10-year goal of $150
million for bank investments, grants and deposits in financial intermediaries
and other organizations that primarily lend to or in other ways support low- to
moderate-income communities. These include organizations rehabilitating or
building affordable housing, financing small businesses, and developing
projects eligible for low-income housing tax credits. This category includes
municipal and other securities whose primary purpose is community development.

-- Charitable Contributions -- The bank's goal for grants and contributions is
$40 million, specifically targeted for organizations promoting economic
development, financial literacy, affordable housing, environmental preservation
and health and human services for low-to moderate-income residents of
communities the bank serves. Charitable contributions by the bank's 6,000+
employees are not included in this amount.

-- Minority Vendor Contracts -- To remain a leader in enabling the success of
businesses owned by minorities, women, and people with disabilities, the bank
has set its 10-year goal for vendor contracts to these businesses at $250
million.

The merger of United California Bank and Bank of the West will occur on April 1, 2002. United California Bank branches will convert to the Bank of the West name in the third quarter of 2002. The merged bank's parent, BancWest Corporation, is a wholly-owned subsidiary of BNP Paribas, France's largest publicly-traded bank.