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Pacific Century Financial Corporation Reports First Quarter Net Income of $33.7 Million and Earnings Per Share of 42 Cents

HONOLULU--(BUSINESS WIRE)--April 23, 2001--Pacific Century Financial Corporation (NYSE:BOH)

  • Non-Performing Assets Decline 35 percent from December 31, 2000 Level

  • Board of Directors Declares Quarterly Dividend of 18 cents per share

Pacific Century Financial Corporation (NYSE:BOH) reported first quarter 2001 net income of $33.7 million, up 3.4 percent from $32.6 million in the fourth quarter of 2000 and down 15.3 percent from 39.8 million reported in the first quarter of 2000. Diluted earnings per share were $0.42, compared to $0.41 for the fourth quarter of 2000 and $0.50 for the first quarter of 2000.

Earnings for the first quarter of 2001 included gains of $75.4 million from the sale of its $209 million credit card portfolio which was completed in March 2001, and $20.9 million related to the sale of ownership interest in Star Systems, Inc. which was acquired by Concord EFS (Nasdaq:CEFT).

Pacific Century Financial Corporation's (PCFC) continuing emphasis on improving asset quality resulted in the significant reduction of credit risk during the quarter. The company reported $119.5 million in non-performing assets (NPAs), down 34.7 percent from $183.0 million reported at December 31, 2000. NPAs at the end of the first quarter represented the lowest level of NPAs since March 1998.

"The first quarter's results clearly demonstrated that we are delivering on our intent to resolve credit issues and position the company for improved performance," said Michael E. O'Neill, PCFC chairman and chief executive officer. "The significant improvement in asset quality reflects the strength of our risk management group and lays a solid foundation for implementing our strategic focus."

During the quarter, PCFC completed its strategic assessment process which began in December 2000. The results of that comprehensive process are highlighted in the company's announcement of its Strategic Plan, which was released today.

"The next 12 to 18 months will be a transition period for us," said O'Neill. "The company's size, market franchise and business mix will change and the company's underlying performance is being positioned for improvement."

Net interest income for the quarter on a fully taxable equivalent basis totaled $134.1 million, down from $139.8 million in 2000's first quarter, and down from $138.9 million in 2000's fourth quarter. The decreases resulted from relatively higher rates paid for borrowings and time deposits, as well as the recognition of $2.4 million of losses on lease residuals.

Net interest margin for the first quarter 2001 was 4.24 percent compared to 4.29 percent for the fourth quarter of 2000, reflecting the impact of rate decreases in 2001 and the $2.4 million loss in lease residuals.

The provision for loan losses was $52.5 million, up from $13.5 million in the first quarter of 2000 and $25.8 million in the fourth quarter of 2000. The increased provision was due to the recognition of net loan losses totaling $97.7 million related to exiting several higher risk credit relationships.

Non-interest income of $155.5 million for the quarter reflected the impact of $75.4 million in gains from the sale of the credit card portfolio and $20.9 million in investment securities gains related to the sale of ownership interest in Star Systems, Inc. Non-interest income, adjusted for those special items and a $3.3 million write down in an equity investment stood at $62.5 million. This compares to $63.9 million for the first quarter of 2000 and $64.7 million for the fourth quarter of 2000, which included $3.2 million from gains on sales of equity investments in foreign banks. After special items, the decrease largely was due to reduced earnings from the trust business, where fees are based partially on asset values.

Non-interest expense for the quarter was $176.2 million versus $126.1 million for the first quarter of 2000 and $123.9 million for the fourth quarter of 2000. Special expense items recognized during the quarter included $44.4 million of restructuring and related costs. The largest element of those costs was $28.0 million in foreign currency translation losses that were recognized because of strategic decisions to exit foreign locations. Also included were $6.2 million of losses from the anticipated inability to recover an equity investment in a bank in the Solomon Islands, and $5.3 million of severance and other restructuring related costs. Excluding the special items, non-interest expense increased by $5.7 million over the $126.1 million reported in the first quarter of 2000. The largest component of this increase was $2.3 million in technology and consulting costs.

PCFC's effective tax rate increased for the first quarter of 2001 largely due to foreign and state income taxes.

Adjusted for the gains on sales, additional loan loss provisioning, restructuring and related costs, and other costs, net income for the first quarter of 2001 would be $30.8 million and diluted earnings per share would be $0.38.

Asset Quality Improvement

Asset quality improved for the second consecutive quarter with non-performing assets, exclusive of loans past due 90+ days, dropping 35 percent to $119.5 million compared to the fourth quarter of 2000 and down 12.4 percent compared to $136.4 million at end of the first quarter of 2000.

The areas that saw the sharpest decline in NPAs from the fourth quarter of 2000 were commercial loans and foreign loans, which dropped by 57 percent ($31.6 million) and 50 percent ($16.6 million), respectively. Improvement in commercial loans resulted primarily from the sale of substantially all the non-accrual syndicated loans ($31.5 million) during the quarter. Reduction in foreign NPAs was driven by four Asia credits totaling approximately $10 million, of which two credits totaling approximately $7.4 million were sold, with $2.1 million being charged off. Two commercial real estate non-accrual credits of approximately $9.5 million were transferred to real estate owned.

Net charge-offs for the quarter were $97.7 million. During the quarter, PCFC charged off approximately $66.7 million related to syndicated loans, $10.0 million in commercial real estate and $5.6 million in foreign loans. Of the $97.7 million in loan losses, approximately $58.3 million was related to loans, which at the time of charge-off were performing.

At quarter-end, the ratio of NPAs to total loans was 1.33 percent compared 1.89 percent at year-end 2000 and 1.39 percent at the end of the first quarter last year. The ratio of allowance for loan losses to non-performing assets (exclusive of loans past due 90+ days) increased to 167 percent from 135 percent at December 31, 2000 and 143 percent for the first quarter of 2000. The ratio of allowance for loan losses to outstanding loans stood at 2.29 percent versus 2.62 percent at year-end 2000 and 2.05 percent at the end of 2000's first quarter.

Other Financial Highlights

PCFC's success in lowering exposures in syndicated lending and in Asia and the sale of its credit card portfolio were reflected in the company's balance sheet. Total assets at the end of the first quarter were $13.7 billion, down 2.1 percent from $14.0 billion at year-end 2000 and down 3.5 percent from $14.2 billion at March 31, 2000. Correspondingly, loans at first quarter-end 2001 totaled $8.7 billion, down 8.5 percent from $9.5 billion at year-end 2000 and down 10.3 percent from $9.7 billion at March 31, 2000.

On a linked quarter basis, PCFC managed its syndicated loan exposure lower by approximately $372 million, of which approximately $304 million were loans outstanding, with the balance being undrawn commitments. The company also reduced its Asia exposure by approximately $70 million to $708 million at the end of the first quarter. At March 31, 2001, outstanding syndicated and Asia loans were approximately $800 million and $525 million, respectively.

Deposits at the end of the first quarter stood at $8.8 billion, down 3.3 percent from $9.1 billion at year-end 2000 and down 3.3 percent from March 31, 2000. On a linked quarter basis, domestic deposits grew 1.7 percent and foreign deposits declined 20.9 percent primarily due to a shift in funding strategy.

Other Highlights Since the End of the First Quarter

The company's Board of Directors declared a quarterly cash dividend of 18 cents per share on the company's outstanding shares. The dividend will be payable on June 14, 2001 to shareholders of record at the close of business on May 25, 2001.

PCFC's U.S. Mainland subsidiary Pacific Century Bank, N.A. (PCB) completed the sale of PCB's nine-branch Arizona franchise to Zions Bancorporation in April 2001. The sale resulted in a gain of approximately $24 million, net of expenses associated with the transaction. The net gain will be recognized in the second quarter of 2001.

2001 Outlook for Hawaii's Economy

Hawaii's economists continue to forecast economic expansion in 2001 with Hawaii real GSP growth estimates between 2.5 percent to 3.0 percent. The key driver of growth, according to the state's Council on Revenues, will be construction which experienced 10 percent to 15 percent growth in 2000 and is expected to have similar growth in 2001. The consensus outlook for tourism in 2001 is 2.5 percent to 3.5 percent growth in visitor arrivals, which factors in the impact of the U.S. economic slowdown.

The company will review first quarter 2001 earnings and the results of its strategic assessment process at a presentation in New York today at 8:00 a.m. ET. The presentation will be accessible via teleconference as well as through the investor relations link of PCFC's web site, www.boh.com. The conference call number is 800/230-1096 or for international locations call (612) 332-0720. A replay will be available at 12 noon ET on Monday, April 23, 2001 by calling 800/475-6701 (USA) or 320/365-3844 (International) and entering the number 577584 when prompted. A replay of the presentation will be available at 12 noon ET, Monday, April 23, 2001 on PCFC's web site.

Pacific Century Financial Corporation is a regional financial services holding company with locations throughout the Pacific region. Pacific Century and its subsidiaries provide varied financial services to businesses, governments and consumers in four principal markets: Hawaii and the West Pacific, South Pacific, Asia and selected markets on the U.S. Mainland. Pacific Century's principal subsidiary, Bank of Hawaii, is the largest commercial bank in the state of Hawaii.

Pacific Century Financial Corporation and Subsidiaries

Highlights       
(in thousands of dollars except per share amounts)

Earnings Highlights and                                    Percentage
Performance Ratios                     2001         2000      Change

Three Months Ended March 31
   Net Income                        $33,677      $39,765     -15.3%
   Basic Earnings Per Share             0.42         0.50     -16.0%
   Diluted Earnings Per Share           0.42         0.50     -16.0%
   Cash Dividends                     14,363       13,541

   Return on Average Assets            0.99%        1.13%
   Return on Average Equity           10.42%       13.19%
   Net Interest Margin                 4.24%        4.31%
   Efficiency Ratio                   65.43%       62.06%

Summary of Results Excluding 
the Effect of Intangibles (a)

Three Months Ended March 31
   Net Income                        $39,283      $43,889     -10.5%
   Basic Earnings per Share            $0.49        $0.55     -10.9%
   Diluted Earnings per Share          $0.48        $0.55     -12.7%
   Return on Average Assets            1.17%        1.26%
   Return on Average Equity           14.21%       17.54%
   Efficiency Ratio                   63.10%       59.73%

(a) Intangibles include goodwill, core deposit and trust intangibles,
and other intangibles.

Statement of 
Condition Highlights             March 31      March 31     Percentage
and Performance Ratios             2001          2000         Change

Total Assets                    $13,710,675   $14,250,386      -3.8%
Net Loans                         8,533,776     9,346,460      -8.7%
Total Deposits                    8,815,523     9,143,063      -3.6%
Total Shareholders' Equity        1,371,942     1,225,907      11.9%

Book Value Per Common Share          $17.18        $15.39
Loss Reserve/Loans Outstanding        2.29%         2.05%
Average Equity/Average Assets         9.47%         8.54%

Common Stock Price Range              High          Low
     2000                            $23.19       $11.06
     2001 First Quarter              $20.99       $16.88

    Corporate Offices:                       Inquiries:
    Financial Plaza of the Pacific           Allan R. Landon
    130 Merchant Street                      Vice Chairman and
    Honolulu, Hawaii  96813                  Chief Financial Officer
                                             808/538-4727

        Pacific Century Financial Corporation and Subsidiaries
                   Consolidated Statements of Income
                             (Unaudited)

                                              3 Months     3 Months
                                                 Ended        Ended
                                                Mar 31       Mar 31
                                                 2001         2000

(in thousands of dollars except per share amounts)

Interest Income

  Interest on Loans                         $   180,173    $   180,402
  Loan Fees                                      10,903          8,246
  Income on Lease Financing                       6,857          7,979
  Interest and Dividends
   on Investment Securities
    Taxable                                      11,636         14,236
    Non-taxable                                     140            279
  Income on Investment
   Securities Available for Sale                 39,301         41,033
  Interest on Deposits                            5,214          3,764
  Interest on Security
   Resale Agreements                                 38             10
  Interest on Funds Sold                          1,059            473

    Total Interest Income                       255,321        256,422

Interest Expense
  Interest on Deposits                           72,019         68,214
  Interest on Security
   Repurchase Agreements                         24,630         22,953
  Interest on Funds Purchased                     6,123          8,527
  Interest on Short-Term Borrowings               3,230          4,532
  Interest on Long-Term Debt                     15,314         12,688

    Total Interest Expense                      121,316        116,914

Net Interest Income                             134,005        139,508

Provision for Loan Losses                        52,466         13,522

Net Interest Income
 After Provision for Loan Losses                 81,539        125,986

Non-Interest Income
  Trust Income                                   15,795         16,887
  Service Charges on
   Deposit Accounts                               9,940          9,557
  Fees, Exchange, and
   Other Service Charges                         20,782         21,626
  Other Operating Income                         13,410         15,575
  Gain on Sale of
   Credit Card Portfolio                         75,414           --
  Investment Securities
   Gains (Losses)                                20,203            282

    Total Non-Interest Income                   155,544         63,927

Non-Interest Expense
  Salaries                                       47,883         47,547
  Pensions and Other
   Employee Benefits                             14,353         14,630
  Net Occupancy Expense                          12,124         11,816
  Net Equipment Expense                          13,379         12,067
  Other Operating Expense                        39,131         35,211
  Goodwill Amortization                           4,836          4,742
  Restructuring and
   Other Related Charges                         44,438           --
  Minority Interest                                  79             69

    Total Non-Interest Expense                  176,223        126,082

Income Before Income Taxes                       60,860         63,831
Provision for Income Taxes                       27,183         24,066

Net Income                                  $    33,677    $    39,765

Basic Earnings Per Share                    $      0.42    $      0.50
Diluted Earnings Per Share                  $      0.42    $      0.50
Dividends Declared Per Share                $      0.18    $      0.17
Basic Weighted Average Shares                79,720,284     79,821,365
Diluted Weighted Average Shares              81,124,713     80,017,761


        Pacific Century Financial Corporation and Subsidiaries
           Consolidated Statements of Condition (Unaudited)

                                  March 31    December 31    March 31
(in thousands of dollars)           2001         2000          2000

Assets

Interest-Bearing Deposits        $411,070      $188,649      $225,314
Investment Securities --
 Held to Maturity
 (Market Value of $665,722;
  $676,621 and $721,620
  respectively)                   656,174       670,038       732,344
Investment Securities --
 Available for Sale             2,390,518     2,507,076     2,537,617
Securities Purchased
 Under Agreements
 to Resell                            377         3,969           902
Funds Sold                         84,732       134,644        42,208
Loans Held for Sale               308,605       179,229       115,160
Loans                           8,683,416     9,489,061     9,664,473
  Unearned Income                (258,445)     (253,903)     (237,764)
  Allowance for
   Loan Losses                   (199,800)     (246,247)     (195,409)

    Net Loans                   8,533,776     9,168,140     9,346,460

    Total Earning Assets       12,076,647    12,672,516    12,884,845

Cash and Non-Interest
 Bearing Deposits                 559,227       523,969       491,218
Premises and Equipment            251,746       254,621       267,497
Customers' Acceptance
 Liability                          7,225        14,690         8,262
Accrued Interest
 Receivable                        67,875        68,585        74,597
Other Real Estate                  11,336         4,526         4,633
Intangibles,
 including Goodwill               186,313       192,264       202,832
Other Assets                      550,306       282,645       316,502

    Total Assets             $ 13,710,675  $ 14,013,816  $ 14,250,386

Liabilities
Domestic Deposits

  Demand -- Non-Interest
            Bearing          $  1,685,149  $  1,707,724  $  1,708,635
         -- Interest Bearing    2,042,129     2,008,730     2,110,998
  Savings                         665,643       665,239       693,077
  Time                          2,948,232     2,836,083     2,759,319
Foreign Deposits
  Demand - Non-Interest
            Bearing               337,854       385,366       380,179
  Time Due to Banks               390,395       535,126       398,176
  Other Savings and Time          746,121       942,313     1,092,679

    Total Deposits              8,815,523     9,080,581     9,143,063

Securities Sold Under
 Agreements to
 Repurchase                     1,703,982     1,655,173     1,806,197
Funds Purchased                   297,613       413,241       511,440
Short-Term Borrowings             278,786       211,481       424,720
Bank's Acceptances
 Outstanding                        7,225        14,690         8,262
Accrued Retirement Expense         34,820        37,868        40,851
Accrued Interest Payable           64,113        72,460        66,456
Accrued Taxes Payable             164,893       130,766       103,826
Minority Interest                   4,295         4,536         4,269
Other Liabilities                  84,750        94,512       109,669
Long-Term Debt                    882,733       997,152       805,726

    Total Liabilities          12,338,733    12,712,460    13,024,479

Shareholders' Equity
Common Stock ($.01 par value),
authorized 500,000,000 shares;
 issued/outstanding;
 March 2001 --
  80,558,704 / 79,863,450;
 December 2000 --
  80,558,811 / 79,612,178;
 March 2000 --
  80,551,253 / 79,661,479;            806           806           806
Capital Surplus                   346,411       346,045       345,863
Accumulated Other
 Comprehensive Income              21,835       (25,079)      (72,307)
Retained Earnings               1,015,867       996,791       967,308
Treasury Stock,
 at Cost -- (March 2001 -- 
 695,254; December 2000 --
 946,633; and March 2000 --
 889,774)                         (12,977)      (17,207)      (15,763)

 Total Shareholders' Equity     1,371,942     1,301,356     1,225,907

 Total Liabilities and
  Shareholders' Equity        $13,710,675   $14,013,816   $14,250,386


        Pacific Century Financial Corporation and Subsidiaries
           Consolidated Statements of Shareholders' Equity
                             (Unaudited)
                                                           Accumulated
                                                             Other
                                        Common   Capital  Comprehensive
(in thousands of dollars)        Total   Stock   Surplus    Income    

Balance at December 31, 2000  $1,301,356  $806   $346,045    ($25,079)

Comprehensive Income
 Net Income                       33,677     -          -           -

 Other Comprehensive 
  Income, Net of Tax
  Investment Securities, 
  Net of Reclassification
  Adjustment                      19,510     -          -      19,510

 Foreign Currency 
  Translation Adjustment          26,710     -          -      26,710

 Pension Liability
  Adjustments                       (159)    -          -        (159)

 Stock Compensation                  853     -          -         853

 Total Comprehensive Income                              

Common Stock Issued
 18,317 Profit Sharing Plan          370     -         92           -
184,092 Stock Option Plan          3,000     -        114           -
 34,904 Dividend Reinvestment Plan   700     -        163           -
    893 Directors' Restricted 
         Shares and Deferred 
         Compensation Plan           288     -         (3)          -

Treasury Stock Purchased               -     -          -           -

Cash Dividends Paid              (14,363)    -          -           -


Balance at March 31, 2001     $1,371,942  $806   $346,411     $21,835

Balance at December 31, 1999  $1,212,330  $806   $345,851    ($66,106)

Comprehensive Income

 Net Income                       39,765     -          -           -

 Other Comprehensive 
  Income, Net of Tax
  Investment Securities,
  Net of Reclassification 
  Adjustment                      (7,630)    -          -      (7,630)

 Foreign Currency 
  Translation Adjustment           1,429     -          -       1,429
 Pension Liability 
  Adjustments                          -     -          -           -

 Total Comprehensive Income

Common Stock Issued
 22,377 Profit Sharing Plan          361     -          -           -
 33,932 Stock Option Plan            398     -          3           -
 78,723 Dividend Reinvestment 
         Plan                      1,123     -          -           -
    525 Directors' Restricted 
         Shares and
         Deferred
         Compensation Plan             9     -          9           -
Treasury Stock Purchased          (8,337)    -          -           -
Cash Dividends Paid              (13,541)    -          -           -

Balance at March 31, 2000     $1,225,907  $806   $345,863    ($72,307)

        Pacific Century Financial Corporation and Subsidiaries
            Consolidated Statements of Shareholders' Equity
                              (Unaudited)

                                      Retained  Treasury  Comprehensive
(in thousands of dollars)             Earnings    Stock       Income

Balance at December 31, 2000           $996,791   ($17,207)

Comprehensive Income

 Net Income                              33,677          -    $33,677

 Other Comprehensive Income,
   Net of Tax Investment Securities, 
   Net of Reclassification Adjustment         -          -     19,510

 Foreign Currency 
  Translation Adjustment                      -          -     26,710

 Pension Liability Adjustments                -          -       (159)

 Stock Compensation                           -          -        853

 Total Comprehensive Income                                   $79,738

Common Stock Issued
  18,317 Profit Sharing Plan                  -        278
 184,092 Stock Option Plan                 (238)     3,124
  34,904 Dividend Reinvestment Plan           -        537
     893 Directors' Restricted 
          Shares and
          Deferred Compensation Plan          -        291
Treasury Stock Purchased                      -          -
Cash Dividends Paid                     (14,363)         -


Balance at March 31, 2001            $1,015,867   ($12,977)


Balance at December 31, 1999           $942,177   ($10,398)

Comprehensive Income

 Net Income                              39,765          -    $39,765

 Other Comprehensive Income,
  Net of Tax Investment 
  Securities, Net of 
  Reclassification Adjustment                 -          -     (7,630)

  Foreign Currency 
   Translation Adjustment                     -          -      1,429
  Pension Liability Adjustments               -          -          -

     Total Comprehensive Income                               $33,564

Common Stock Issued
 22,377 Profit Sharing Plan                (128)       489
 33,932 Stock Option Plan                  (362)       757
 78,723 Dividend Reinvestment Plan         (603)     1,726
    525 Directors' Restricted 
         Shares and
         Deferred Compensation Plan           -          -
Treasury Stock Purchased                      -     (8,337)
Cash Dividends Paid                     (13,541)         -

Balance at March 31, 2000              $967,308   ($15,763)


        Pacific Century Financial Corporation and Subsidiaries

 Consolidated Average Balances and Interest Rates Taxable Equivalent
                              (Unaudited)

                           Three Months Ended      Three Months Ended
                            March 31, 2001         March 31, 2000
                         Average Income/ Yield/ Average Income/ Yield/
(in millions of dollars) Balance Expense   Rate  Balance Expense  Rate

Earning Assets

Interest Bearing
 Deposits             $   332.3 $   5.2   6.36% $  232.1 $  3.8  6.52%
Investment Securities
 Held to Maturity
  -- Taxable              652.6    11.7   7.23     775.5   14.2  7.38
  -- Tax-Exempt             3.7     0.2  23.28      10.0    0.4 17.32
Investment Securities
  Available for Sale    2,479.9    39.3   6.43   2,527.0   41.0  6.53
Funds Sold                 80.5     1.1   5.53      35.0    0.5  5.56
Net Loans
  -- Domestic           7,985.7   165.6   8.41   7,897.9  163.6  8.33
  -- Foreign            1,277.8    21.4   6.80   1,586.1   24.9  6.30
Loan Fees                          10.9                     8.3

 Total Earning 
  Assets               12,812.5   255.4   8.08  13,063.6  256.7  7.90
Cash and Due 
From Banks                438.2                    506.5
Other Assets              595.1                    631.4

    Total Assets      $13,845.8                $14,201.5

Interest Bearing
  Liabilities

  Domestic Deposits 
    -- Demand          $2,008.2    11.7   2.36  $2,115.6   12.3  2.33
    -- Savings            665.7     3.4   2.04     700.1    3.5  2.03
    -- Time             2,902.7    43.1   6.03   2,764.9   35.1  5.10

    Total Domestic      5,576.6    58.2   4.23   5,580.6   50.9  3.67
  Foreign Deposits
    -- Time Due 
        to Banks          489.4     6.6   5.51     487.8    7.0  5.79
    -- Other Time 
        and Savings       801.0     7.2   3.65   1,121.6   10.3  3.70

    Total Foreign       1,290.4    13.8   4.35   1,609.4   17.3  4.33

    Total Interest
  Bearing Deposits      6,867.0    72.0   4.25   7,190.0   68.2  3.82 
Short-Term Borrowings   2,364.8    34.0   5.83   2,626.6   36.0  5.51
Long-Term Debt            916.0    15.3   6.78     773.0   12.7  6.60

 Total Interest 
 Bearing Liabilities   10,147.8   121.3   4.85  10,589.6  116.9  4.44

Net Interest Income               134.1                   139.8
Interest Rate Spread                      3.23%                  3.46%
Net Interest Margin                       4.24%                  4.30%
Demand Deposit 
         -- Domestic    1,636.8                  1,663.6
         -- Foreign       377.5                    419.5

Total Demand Deposits   2,014.3                  2,083.1
Other Liabilities         372.4                    316.7
Shareholders' Equity    1,311.3                  1,212.1

Total Liabilities and
 Shareholders' Equity $13,845.8                $14,201.5

Provision for
 Loan Losses                       52.5                    13.5
Net Overhead                       20.6                    62.2
Income Before 
 Income Taxes                      61.0                    64.1
Provision for
Income Taxes                       27.2                    24.1
Tax-Equivalent 
 Adjustment                         0.1                     0.2


Net Income                        $33.7                   $39.8

                          Three Months Ended    Twelve Months Ended
                          December 31, 2000       December 31, 2000
                         Average Income/ Yield/ Average Income/ Yield/
(in millions of dollars) Balance Expense  Rate  Balance Expense  Rate

Earning Assets

Interest Bearing
 Deposits          $    215.7 $   3.7  6.91% $   216.2 $   14.7  6.78%
Investment 
 Securities
 Held to Maturity
    -- Taxable          687.0    12.5  7.24      724.3     53.0  7.32
    -- Tax-Exempt         3.8     0.2 22.24        7.6      1.4 18.24
Investment
 Securities
 Available
 for Sale             2,478.4    41.2  6.60    2,502.5    165.1  6.60
  Funds Sold             66.8     1.1  6.46       43.2      2.7  6.22
  Net Loans
    -- Domestic       8,108.3   178.7  8.76    8,076.4    690.1  8.55
    -- Foreign        1,319.9    22.5  6.78    1,467.9     97.7  6.65
  Loan Fees                       8.7                      33.6

 Total Earning 
 Assets              12,879.9   268.6  8.30   13,038.1  1,058.3  8.12
Cash and Due
  From Banks            404.6                     443.2
Other Assets            503.3                     574.0

    Total Assets    $13,787.8                 $14,055.3

Interest Bearing Liabilities

  Domestic Deposits 
    -- Demand        $1,991.6    12.1  2.41    $2,061.9   48.7   2.36
    -- Savings          667.5     3.4  2.03       684.8   13.9   2.03
    -- Time           2,815.6    42.3  5.98     2,781.1  154.1   5.54

    Total Domestic    5,474.7    57.8  4.20     5,527.8  216.7   3.92
  Foreign Deposits
    -- Time Due
        to Banks        557.9     8.7  6.23       505.4   30.4   6.03
    -- Other Time
        and Savings     768.9     7.1  3.65       960.5   38.9   4.05

    Total Foreign     1,326.8    15.8  4.73     1,465.9   69.3   4.73

  Total Interest
  Bearing Deposits    6,801.5    73.6  4.30     6,993.7  286.0   4.09
Short-Term 
Borrowings            2,437.1    39.1  6.38     2,597.4  156.1   6.01
Long-Term Debt        1,001.6    17.0  6.72       886.9   59.1   6.66

 Total Interest
 Bearing Liabilities 10,240.2   129.7  5.04    10,478.0  501.2   4.78

Net Interest Income             138.9                    557.1
Interest Rate Spread                   3.26%                     3.34%
Net Interest Margin                    4.29%                     4.27%
Demand Deposit  
    -- Domestic       1,610.8                   1,640.0
    -- Foreign          354.7                     371.4

Total Demand 
 Deposits             1,965.5                   2,011.4
Other Liabilities       315.6                     331.3
Shareholders' Equity  1,266.5                   1,234.6

 Total Liabilities
  and Shareholders'
  Equity            $13,787.8                 $14,055.3

Provision for
  Loan Losses                    25.8                    142.9
Net Overhead                     59.2                    233.4

Income Before Income Taxes       53.9                    180.8
Provision for Income Taxes       21.2                     66.3
Tax-Equivalent Adjustment         0.1                      0.8

Net Income                      $32.6                   $113.7

        Pacific Century Financial Corporation and Subsidiaries
                Consolidated Non-Performing Assets and
                Accruing Loans Past Due 90 Days or More
                              (Unaudited)

                        Mar 31    Dec 31   Sep 30     Jun 30    Mar 31
(in millions of dollars)  2001      2000     2000       2000      2000

Non-Accrual Loans
    Commercial
     and Industrial      $23.8     $55.4    $49.0      $52.7     $20.1
    Real Estate
      Construction         6.3       6.4      8.1        8.0       0.9
      Commercial          42.5      60.1     86.8       62.2      18.2
      Residential         18.5      22.7     22.0       23.2      23.2
    Installment            0.1         -      0.1        0.1       0.5
    Leases                 0.2       0.4      0.2        0.3       3.7

    Total Domestic        91.4     145.0    166.2      146.5      66.6
    Foreign               16.9      33.5     48.3       59.2      65.2

    Subtotal             108.3     178.5    214.5      205.7     131.8

Foreclosed 
 Real Estate
    Domestic              10.9       4.2      4.9        4.6       4.3
    Foreign                0.3       0.3      0.2        0.3       0.3

          Subtotal        11.2       4.5      5.1        4.9       4.6

  Total Non-Performing 
   Asset                 119.5     183.0    219.6      210.6     136.4

Accruing Loans Past 
Due 90 Days or More
    Commercial 
     and Industrial        3.9       5.0      2.2        4.7       6.7
    Real Estate
      Construction           -         -      0.1          -         -
      Commercial           0.9       1.3      4.9        2.0       2.1
      Residential          3.3       3.3      7.2        3.5       5.0
    Installment            2.7       5.6      4.6        4.0       4.7
    Leases                 0.1       0.4      0.1        1.5       1.4

    Total Domestic        10.9      15.6     19.1       15.7      19.9
    Foreign                0.2       3.2      1.5        1.3       3.2

          Subtotal        11.1      18.8     20.6       17.0      23.1

      Total             $130.6    $201.8   $240.2     $227.6    $159.5

Ratio of Non-Performing 
 Assets to Total Loans   1.33%     1.89%    2.25%      2.09%     1.39%

Ratio of Non-Performing
 Assets and Accruing
 Loans Past Due 90 Days 
or More to Total Loans   1.45%     2.09%    2.46%      2.26%     1.63%

        Pacific Century Financial Corporation and Subsidiaries
                Consolidated Non-Performing Assets and
                Accruing Loans Past Due 90 Days or More
                              (Unaudited)

                           Dec 31     Sep 30  Jun 30  Mar 31   Dec 31
(in millions of dollars)     1999       1999    1999    1999     1998

Non-Accrual Loans
    Commercial 
     and Industrial         $23.7      $31.7   $37.5   $39.1    $28.2
    Real Estate
      Construction            1.1        2.1     0.8     3.1      2.9
      Commercial             19.0       20.8    17.2    18.7      5.4
      Residential            29.7       33.1    35.2    37.6     36.4
    Installment               0.5        0.7     0.8     0.5      0.8
    Leases                    3.9        4.8     4.4     4.5      0.7

    Total Domestic           77.9       93.2    95.9   103.5     74.4
    Foreign                  67.4       55.7    47.5    53.6     57.5

          Subtotal          145.3      148.9   143.4   157.1    131.9

Foreclosed Real Estate
    Domestic                  4.3        5.6     5.8     6.1      5.5
    Foreign                   0.3        0.3     0.2     0.1      0.1

          Subtotal            4.6        5.9     6.0     6.2      5.6

    Total Non-Performing
       Assets               149.9      154.8   149.4   163.3    137.5

Accruing Loans Past 
Due 90 Days or More
    Commercial
     and Industrial           5.9        6.2     3.9     4.3      0.4
    Real Estate
      Construction              -        0.5     0.2     0.2      0.4
      Commercial              1.9        2.4     0.2     0.4        -
      Residential             4.0        2.8     3.7     3.5      4.5
    Installment               4.5        4.5     5.2     6.9      7.3
    Leases                    1.2        0.2       -     0.1      0.3

    Total Domestic           17.5       16.6    13.2    15.4     12.9
    Foreign                   1.0        5.0     8.2     6.3      7.9

          Subtotal           18.5       21.6    21.4    21.7     20.8

      Total                $168.4     $176.4  $170.8  $185.0   $158.3

Ratio of Non-Performing
 Assets to Total Loans       1.54%      1.59%   1.55%   1.69%    1.40%

Ratio of Non-Performing 
Assets and Accruing 
Loans Past Due 90 Days 
or More to Total Loans       1.73%      1.81%   1.78%   1.92%    1.61%

Pacific Century Financial Corporation and Subsidiaries
Summary of Loan Loss Experience

                                          First        Year     First
                                        Quarter       Ended   Quarter
(in millions of dollars)                   2001    12/31/00      2000

Average Amount of Loans Outstanding    $9,263.5    $9,544.3  $9,484.1

Balance of Reserve for Loan Losses
      at Beginning of Period             $246.2      $194.2    $194.2
Loans Charged-Off
      Commercial and Industrial            75.5        22.1       1.4
      Real Estate
         Construction                         -         0.6         -
         Commercial                        11.9        15.2       3.9
         Residential                        2.5         6.5       2.4
      Installment                           5.4        20.1       4.7
      Leases                                0.1         0.5         -
          Total Domestic                   95.4        65.0      12.4
      Foreign                              10.0        45.8       3.7

Total Charged-Off                         105.4       110.8      16.1
Recoveries on Loans Previously
  Charged-Off
      Commercial and Industrial             2.7         5.5       1.7
      Real Estate
         Construction                         -           -         -
         Commercial                         0.3         0.6       0.1
         Residential                        0.2         1.1       0.5
      Installment                           1.8         6.9       1.7
      Leases                                0.1           -         -

           Total Domestic                   5.1        14.1       4.0
      Foreign                               2.6         7.3       0.8

Total Recoveries                            7.7        21.4       4.8

Net Charge-Offs                           (97.7)      (89.4)    (11.3)
Provision Charged to Operating Expenses    52.5       142.9      13.5
Other Net Additions (Reductions)(a)        (1.2)       (1.5)     (1.0)

Balance at End of Period                 $199.8      $246.2    $195.4

Ratio of Net Charge-Offs to
Average Loans 
 Outstanding  (annualized)                 4.22%       0.94%     0.48%

Ratio of Reserve to 
Loans Outstanding                          2.29%       2.62%     2.05%


    (a) Includes balance transfers, reserves acquired, and foreign
currency translation adjustments.


        Pacific Century Financial Corporation and Subsidiaries
      Quarterly Summary of Selected Consolidated Financial Data

(in millions of dollars except per share amounts)

                Mar. 31    Dec. 31    Sept. 30   Jun. 30    Mar. 31
                 2001        2000       2000      2000       2000

Balance Sheet Totals

Total Assets  $ 13,710.7 $ 14,013.8  $ 13,939.9 $ 14,294.6 $ 14,250.4
Net Loans        8,533.8    9,168.1     9,233.5    9,497.4    9,346.5
Deposits         8,815.5    9,080.6     8,820.7    9,109.1    9,143.1
Long-Term 
 Debt              882.7      997.2       999.7      902.2      805.7
Shareholders'
 Equity          1,371.9    1,301.4     1,250.1    1,209.4    1,225.9

Quarterly Operating 
 Results

Net Interest
 Income       $    134.0 $    138.8  $    139.3 $    138.6 $    139.5
Provision for
 Loan Losses        52.5       25.8        20.1       83.4       13.5
Non-Interest 
 Income            155.5       64.7        61.3       73.6       63.9
Non-Interest 
 Expense           176.2      123.9       124.9      121.9      126.1
Net Income          33.7       32.6        34.6        6.7       39.8

Basic 
 Earnings
 Per Share    $     0.42 $     0.41  $     0.44 $     0.08 $     0.50
Diluted
 Earnings
 Per Share    $     0.42 $     0.41  $     0.44 $     0.08 $     0.50

Return on
 Average
 Assets             0.99%      0.94%       0.98%      0.19%      1.13%
Return on
 Average 
 Equity            10.42%     10.24%      11.20%      2.19%     13.19%
Efficiency
 Ratio             65.43%     60.52%      62.26%     57.31%     62.06%

Excluding the
Effects of
Intangibles(1)

 Net Income   $     39.3 $     36.7  $     38.8 $     11.0 $    43.9
 Basic 
  Earnings
  Per Share   $     0.49 $      0.46 $     0.49 $     0.14 $    0.55
 Diluted 
  Earnings
  Per Share   $     0.48 $      0.46 $     0.49 $     0.14 $    0.55
 Return on
  Average
  Assets            1.17%      1.07%       1.12%      0.32%     1.26%
 Return on
  Average 
  Equity           14.21%     13.60%      14.94%      4.30%    17.54%
 Efficiency 
  Ratio            63.10%     58.19%      59.83%     54.96%    59.73%

    (1) Intangibles include goodwill, core deposit and trust
intangibles, and other intangibles.

CONTACT: Pacific Century Financial Corporation
Media Inquiries
Stafford Kiguchi, 808/537-8580 (Pager: 808/363-5383)
skiguchi@boh.com
Investor/Analyst Inquiries
Cindy Wyrick, 808/537-8430
cwyrick@boh.com