Bank of the West 2008 Annual Report Download - page 4

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2
MESSAGE FROM THE CHAIRMAN AND THE PRESIDENT & CEO
The year 2008 was one of extraordinary turbulence,
including in our markets in the Western United States.
The removal of undue and unsustainable leverage from
the economy resulted in rapid and substantial declines
in the value of many assets, putting pressure on
companies and individuals and their banks. In these
difficult times, we are pleased to report that the solid
performance of our operating businesses allowed us to
record earnings of $92.1 million in 2008. Of course,
our earnings were considerably reduced from prior
years as we recorded impairments in our investment
securities portfolio and substantially strengthened our
reserves against future credit losses.
Strong revenue growth allowed us to absorb the impact
of the economic crisis. Through current earnings in
2008, we increased our net reserves for loan and lease
losses by $311.3 million to $742.8 million, or 1.58%
of total loans and leases at December 31, 2008.
Prudent management, sound underwriting standards
and a balanced loan portfolio lessened our exposure to
credit losses.
Our core financial strength, stability and commitment
to customer service excellence served us well in 2008.
We also benefited from the financial strength and
support of our global parent, BNP Paribas, one of the
six highest rated banks in the world.
In addition to our sustained financial strength, we
find that customers come to Bank of the West and stay
with us because they appreciate our commitment to
service. Especially in these times, corporate clients
and individuals place great value on our customer
service orientation, our full range of financial products
and services offered through a relationship banking
model, and our faithful commitment to them and to
our communities.
In 2008, we were pleased to be recognized for customer
satisfaction by J.D. Power and Associates for ranking
“Highest in Customer Satisfaction among Retail
Banks” in California, Oregon and Washington. Bank of
the West was also honored in 2008 with eight separate
top awards in middle-market business banking by
Greenwich Associates, a highly respected financial
services consultancy.
Our core financial strength, stability and commitment to
customer service excellence served us well in 2008