A light source device of an electronic endoscope system has first and second semiconductor lasers. In a vascular observation mode, one of the semiconductor lasers is used in a full light state (100% rated output) while the other is used in a reduced light state (for example, 10% rated output). First and second images of an internal body portion are captured with a color imaging device under illumination of two patterns, respectively. Correlation operation of pixel values of three colors is performed between the two images. Noise components, caused by the first or second semiconductor lasers in the light reduced state, are removed from the first and second images. An oxygen saturation level of blood in a blood vessel is calculated using the first and second images with the noise components removed.