Bank of The West

Bank of the West Pledges $75 Billion for Community Support

September 3, 2005

SAN FRANCISCO–(BUSINESS WIRE)–Sept. 2, 2005–Bank of the West today announced it would boost its community support to offer $75 billion in loans, investments, contributions and services to individuals, small businesses, companies and community-based organizations throughout the bank’s markets. The new goal extends through 2015 and increases by 150% an earlier $30 billion goal announced in 2002.

“The expanded plan is a direct result of the bank’s growth,” said Don J. McGrath, Bank of the West chairman and CEO, growth that includes Bank of the West’s ongoing acquisition of Commercial Federal Bank, a $10.4 billion asset federal savings bank based in Omaha, Nebraska. The bank’s Board of Directors set the new goal because Bank of the West will have doubled in size since 2002 and will play a larger role in community development in its 19-state service area.

“We want to help improve the quality of life and the economic health of the communities we serve,” McGrath said. “As we grow, we want to expand the scope of our community responsibility program to incorporate the communities served by Commercial Federal and other merger partners. We also anticipate further growth in upcoming years.

“Specific goals were developed recognizing our expanded presence in the Western and Midwestern states,” McGrath added. “Our bank has 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 says we will now become an even larger participant in the region’s economy.” The goal represents approximately 140% of the bank’s projected assets at year’s end 2005.

As a result of the current acquisition, Bank of the West will become a $54 billion-asset bank with more than 675 branches in Arizona, California, Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, Wisconsin and Wyoming. This acquisition marks Bank of the West’s entry to the retail banking market in Kansas, Missouri and Oklahoma. The transaction is expected to conclude in the last quarter of 2005, pending regulatory and shareholder approval.

As part of its objective to serve inner cities and low- to moderate-income individuals, Bank of the West will operate 162 branches in low- to moderate-income communities following the acquisition. The bank also participates in the electronic benefits transfer program in California and other states that offer this service.

McGrath said specific objectives within the 13-year goal could change in response to future circumstances or credit conditions. He added that components of the plan may also change after further consultation with community groups and nonprofit service providers in the markets served by the bank.

Components of the program are:

— Residential Mortgage Loans — The bank originates and

purchases 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. Revised goal: $10.3 billion

— Small Business/Farm Loans – The bank originates 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 reach out increasingly to minority- and

women-owned businesses to achieve this. Micro-loans of less

than $30,000 each will be a significant part of this category.

Revised goal: $25 billion

— 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

lends in amounts exceeding $1 million to larger businesses in

low- to moderate-income census tracts. Revised goal: $20

billion

— Community Development Loans – The bank plans to grow further

in the community development market, increasing its lending 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. Revised goal: $5

billion

— Consumer Loans – Bank of the West offers consumer products

including vehicle loans and leases, home equity loans and

lines of credit, personal loans and overdraft protection. The

bank will increase availability of consumer loans and related

products to low- and moderate-income individuals and in low-

and moderate-income census tracts. Revised goal: $10 billion

— Faith-Based Loans – The bank is the nation’s leading

specialized bank lender to churches and other religious

institutions. In the belief that faith-based organizations

enhance the social and moral environment of communities and

provide critical social services, the bank will increase

faith-based lending. Revised goal: $4 billion

— Community Development Investments – The bank has expanded its

goal 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. Revised

goal: $250 million

— Community Contributions – The bank makes grants and

contributions 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. The bank also sponsors a wide range of

community events. Contributions by the bank’s 10,000+

employees (post-merger) are a significant additional factor.

Revised goal: $100 million

— Minority Vendor Contracts – To remain a leader in enabling the

success of businesses owned by minorities, women, and people

with disabilities, the bank has increased its goal for vendor

contracts to these businesses. Revised goal: $350 million

About Bank of the West: Founded in 1874 in San Jose, CA as Farmers National Gold Bank, $42 billion-asset Bank of the West (www.bankofthewest.com)is one of the four largest Western-based commercial banks. Bank of the West offers a full range of personal and business banking products and services. It currently operates nearly 480 banking locations in 16 Western and Midwestern states.