	first interstate seeks uisition less than two months after first interstate bancorp withdrew its bold attempt to buy bankamerica corp chairman joseph pinola is still looking for a good buy but he is also looking at ways to avoid being bought in a wide ranging interview pinola said he s looking for ways to improve profitability and capital between now and so as to resist any potential look at us to maintain our independence if possible in federal regulatory changes will allow the major east coast banks to buy banks in california first interstate the fourth largest california bank and the nineth largest nationwide owns banks in western states and has franchise operations in four additional states bank industry sources say it is an attractive target for large u s or foreign banks looking to quickly move into the lucrative california market and the west coast region while declining specifics on his corporate strategy when asked if uisitions will be part of the plan pinola replied that s undoubtedly a fair statement it would be almost naive not to think that pinola characterized his uisition strategy as opportunistic he said he will look for banks in management trouble that he can get at a bargain then add management to restore profitability or for banks in states where first interstate already operates then cut costs by combining resources the exception he said would be texas where he said most of the banks are already well managed but might be purchased at a discount because of the depressed regional economy pinola declined comment on what circumstances might move him to rekindle his bid for bankamerica saying only we continue to monitor and look at a lot of things and a lot of people continue to monitor and look at us banking analysts however consider another first interstate bid at bankamerica a long shot not likely to happen any time soon pinola called his decision last month to withdraw his billion dlr bid at the nation s second largest bank a very very difficult decision with that decision made however he acknowledged first interstate may now have a difficult time keeping its number four position in the california banking community the competition in this state is tough he said noting citybank s recent purchase of financial service branches from sears roebuck company citybank is moving rapidly to move us down to fifth and wells fargo down to fourth he said outside california pinola acknowledged that security pacific corp with its recent uisitions in arizona washington and oregon is quickly becoming a regional competitor in areas where first interstate has long dominated security is has been and continues to be a highly profitable and obviously well managed company he said he added however first interstate at the moment has the advantages of having owned and managed regional banks longer and has the recognition advantage of having given its regional banks a common name pinola said while its coastal state banks are in good financial condition first interstate continues to sustain serious loan losses in its rocky mountain states where energy real estate and agriculture dominate the economy asked if he thought loan losses in those areas had peaked he said i don t think it has bottomed out because i think most of the problems are real estate related and the real estate problems are going to be with us for several years pinola said another failing economic sector agriculture in the midwest has slowed expansion of first interstate s franchise operation first interstate has franchise banks that offer first interstate financial services in ten states while a year ago he was considering taking his franchise operation east of the mississippi river pinola said because most of the franchise banks are now in the west expansion into the midwest must come first calling the franchise system moderately profitable pinola said it is going to take a rejuvenation of the agriculture sector for us to commence franchising at the speed we were generating before the last year or two on the banking industry in general pinola said he thinks will be another bad year for loan losses with only banks with minimal holdings in real estate able to improve profits reuter 
