Bank of the West acquires Omaha thrift

BancWest Corp. said June 13 that its Bank of the West subsidiary has signed an agreement to buy Commercial Federal Corp. in a cash transaction valued at $1.36 billion.

San Francisco-based Bank of the West will reflag Commercial Federal's branches, adding Missouri, Oklahoma and Kansas as new states for BancWest. It will be the third-largest bank west of the Mississippi River.

BancWest will have approximately $64 billion in assets after the deal.

Commercial Federal will be purchased for $34 per share with a special 50-cent-per-share dividend paid at closing.

The deal, which must be approved by Commercial Federal shareholders and bank regulators, is expected to close in the fourth quarter.

Bank of the West's corporate administrative office is in Walnut Creek.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.