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
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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 | |