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West's Growth Fueling Surge For Area Banks; Deposit growth, interest rates have helped, as has a focus on community.(INDUSTRY SNAPSHOT)(WESTERN/SOUTHWESTERN REGIONAL BANKS)

Investor's Business Daily

| October 04, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: MARILYN MUCH

Banks in the West and the Southwest are enjoying a good run.

They've fared well amid a favorable milieu for banking. Low interest rates have reduced their costs of funds while bolstering their commercial real estate and home mortgage lending.

And Southwestern and Western regional banks boast extra advantages: strong demographics and healthy markets. Fast-growing populations in states such as Texas and California have helped drive higher-than-average deposit growth.

Another plus: Many players in the group focus on lending to small and midsize businesses, where loan demand is at its highest level in a decade.

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