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Pacific Century Financial Corporation Reports Fourth Quarter 1999 Earnings

HONOLULU--(BUSINESS WIRE)--Jan. 19, 2000--Pacific Century Financial Corporation (NYSE: BOH) reported fourth quarter 1999 earnings of $37.6 million, up 7.4 percent over $35.0 million reported for the fourth quarter of 1998. Diluted earnings per share were $0.47, up 9.3 percent from $0.43 for the same period last year. Tangible or "cash" diluted earnings per share were $0.52 compared to $0.48 reported in 1998's fourth quarter. Return on average assets for the quarter was 1.04 percent and return on average equity was 12.29 percent.

For the full-year 1999, Pacific Century's earnings were $133.0 million, up 24.3 percent from $107.0 million reported in 1998. Both years reflect restructuring charges related to the company's New Era program and 1998 additionally reflects increased loan loss provisioning for the Asian crisis. Diluted earnings per share were $1.64 compared to $1.32 reported for 1998.

"We are pleased to report earnings that reflect positive results from initiatives and actions set in place over the last two years to improve our long-term performance," said Pacific Century Chairman & CEO Lawrence M. Johnson.

"The fourth quarter's performance revealed an improvement in fee income and a reduction in expenses -- a portion of which was directly attributable to the implementation of our New Era redesign program," noted Johnson.

Pacific Century began implementing initiatives resulting from its New Era Redesign in the fourth quarter of 1999. The program was announced in September 1999 to improve the delivery of financial services in Hawaii and the Pacific. When fully implemented by the fourth quarter of 2000, total annualized benefits from New Era Redesign are estimated at $43 million in cost savings and $21 million in revenue enhancements.

At year-end 1999, total assets were $14.4 billion compared to $15.0 billion at year-end 1998. Net loans ended 1999 at $9.3 billion versus $9.4 billion at December 31, 1998. Total deposits were $9.4 billion compared to $9.6 billion at year-end 1998. The decline in assets and loans reflects discretionary reductions in the investment portfolio due to changes in interest rates and a reduction in Asian exposures.

Pacific Century entered the fourth quarter with $33.7 million in exposure to a Korean conglomerate and its related companies of which $30.2 million was outstanding. During the quarter the borrower suspended debt service payments and began negotiations with its domestic and foreign bank creditors. At quarter-end those negotiations had not produced a definitive resolution of the matter with foreign lenders. In keeping with Pacific Century's credit policy, the company charged off $19.5 million of the assets and has $10.7 million on non-performing status. Partially as a result of this, net charge-offs for the quarter of $36.8 million exceeded the quarterly provision for loan losses of $20.9 million. The difference of approximately $16.0 million was drawn from the company's reserve for loan losses which had been previously strengthened in recognition of the financial volatility in Asia.

Non-performing assets exclusive of loans past due 90+ days ended the quarter at $149.9 million compared to $154.8 million at the end of the third quarter and $137.5 million at December 31, 1998.

Pacific Century successfully transitioned into the Year 2000 without significant incident. The company's actions to ensure Y2K readiness also included initiatives which were already planned to advance efficiency initiatives such as merging systems in the South Pacific, the U.S. Mainland, the Hawaii and West Pacific markets and outsourcing credit card processing. Total cumulative expenses related to Y2K readiness totaled approximately $36 million, versus the original estimate of $41 million.

Johnson also noted that Hawaii's economy continues to improve with more sectors, such as retail sales, home sales and construction participating in the recovery.

Hawaii's economy grew at an estimated 2.5 percent in 1999 according to state economists and real gross state product growth forecasts for 2000 are between 2.0 and 2.5 percent. Tourism measures through November 1999 reflect growth in both visitor arrivals (2.2 percent) and visitor days (2.8 percent). Other economic indicators such as personal income and unemployment continue to show improvement, with better prospects for improvement in construction.

"Overall, 1999 saw the culmination of significant events and initiatives that serve as the foundation for improved performance going forward," said Johnson. "Everyone in the company has demonstrated their commitment to bringing about the changes that will benefit all stakeholders."

Further highlights on Pacific Century's performance are included in the attached "Comments on Fourth Quarter 1999 Results."

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 service to businesses, governments and consumers in four principal markets: Hawaii, the West and 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.

Forward-Looking Statements

This press release and the attached comments contain forward-looking information. The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. Forward-looking statements are subject to significant risk and uncertainties, many of which are beyond the Company's control. Although the Company believes that the assumptions underlying its forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate and actual results may differ from those contained in or implied by such forward-looking statements for a variety of reasons. Factors which might cause such a difference include, but are not limited to, expected cost savings from New Era Redesign cannot be fully realized or realized within the expected timeframe; income or revenues from New Era Redesign are lower than expected or operating or implementation costs are higher; competitor pressures in the banking and financial services industry increase significantly, particularly in connection with product delivery and pricing; business disruption related to implementation of New Era Redesign programs or methodologies; inability to achieve expected customer acceptance of revised pricing structures and strategies; general economic conditions in the geographic areas where the Company operates are weaker than expected or other unanticipated occurrences which could delay or adversely impact the implementation of all or a part of New Era Redesign. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

Comments on Fourth Quarter 1999 Results

Pacific Century Financial Corporation reported fourth quarter earnings of $37.6 million, up 7.4% from the fourth quarter of 1998 and up 75.1% from 1999's third quarter. For comparative purposes 1999's third quarter included the impact of a $22.5 million pre-tax restructuring charge related to the company's "New Era" program. Diluted earnings per share for the quarter were $0.47, up 9.3% from $0.43 reported for the same period in 1998 and up 74.1% from 1999's third quarter. Tangible earnings for the quarter were $42.3 million relative to $38.8 million for the same period last year.

Results for the quarter reflect the impact of three major factors: provisioning to the loan loss reserve; non-interest income associated with the disposition of venture capital related assets; and positive contributions from the implementation phase of New Era which began in October 1999.

Pacific Century entered the fourth quarter with $33.7 million in exposure to a Korean conglomerate and its related companies of which $30.2 million was outstanding. During the quarter the borrower suspended debt service payments and began negotiations with its domestic and foreign bank creditors. At quarter-end those negotiations had not produced a definitive resolution of the matter with foreign lenders. In keeping with Pacific Century's credit policy, the company charged off $19.5 million of the assets and has $10.7 million on non-performing status. Partially as a result of this, net charge-offs for the quarter of $36.8 million exceeded the quarterly provision for loan losses of $20.9 million. The difference of approximately $16.0 million was drawn from the company's reserve for loan losses which had been previously strengthened in recognition of the financial volatility in Asia.

Additional Asia charge-offs were represented by $3.0 million to another Korean company and $1.6 million to Indonesian Banks. The latter charge-off was driven by interagency regulatory pronouncements, even though debt service on these loans was and continues to be current.

The ratio of loan loss reserve to loans ended the quarter at 2.05%, relative to 2.19% at December 31, 1998 and 2.22% at September 30, 1999.

Non-performing assets (NPAs), exclusive of loans past due 90+ days ended the quarter at $149.9 million or 1.54% of total loans. The same ratio compared with 1998's fourth quarter and 1999's third quarter was 1.40% and 1.59%, respectively. On a linked quarter basis NPAs, inclusive of loans past due 90+ days, ended the quarter at $168.4 million, $10.1 million higher than at yearend 1998 and $8.0 million lower than reported for 1999's third quarter.

Pacific Century's net interest income on a fully taxable equivalent basis totaled $143.2 million, down 0.3% from the comparable period in 1998 and down 0.4% from 1999's third quarter. Net interest margin for the quarter was 4.31%, up from 4.15% in 1998's fourth quarter and 4.28% in 1999's third quarter.

Non-interest income, exclusive of securities gains, totaled $64.1 million, up 18.2% from 1998's fourth quarter and down 10.2% from $71.3 million in 1999's third quarter which included a $14 million gain on the sale of a special purpose leasing company. During the quarter two venture capital related assets went public and contributed $4.3 million to other operating income and $5.6 million in securities gains.

New Era contributions to non-interest income are primarily reflected in Fees, Exchange & Other Service Charges which at $22.3 million was $2.2 million higher than reported in 1998's fourth quarter and $0.3 million higher than 1999's third quarter.

Non-interest expense totaled $131.2 million, relatively unchanged from 1998's fourth quarter and $1.9 million less than reported in 1999's third quarter, exclusive of the restructuring charge. Large non-recurring items that impacted non-interest expense include a $2.3 million reduction in accruals for deferred compensation and post retirement medical benefits, and approximately $2.3 million in increased one-time costs for various other operating expense items.

New Era cost savings are primarily reflected in compensation expense which adjusting for one-time items, would have ended the quarter at $60.9 million, down from $62.4 million in 1998's fourth quarter and down from $64.2 million in 1999's third quarter.

During the quarter, Pacific Century repurchased approximately 519,000 shares of common stock which included about 248,000 shares to offset shares issued under the company's dividend reinvestment and other benefit plans. The remainder of approximately 271,000 shares was repurchased under the company's October 1999 additional authorization to repurchase up to 300,000 shares each quarter. -0-

*T

Pacific Century Financial Corporation and subsidiaries

Highlights (Unaudited)

(in thousands of dollars

except per share amounts)

                                                            Percentage
Earnings Highlights and Performance Ratios    1999     1998   Change

Three Months Ended December 31
   Net Income                                $37,599  $35,013  7.4%
   Basic Earnings Per Share                     0.47     0.44  6.8%
   Diluted Earnings Per Share                   0.47     0.43  9.3%
   Cash Dividends                             13,649   13,649

   Return on Average Assets                    1.04%    0.93%
   Return on Average Equity                   12.29%   11.72%
   Average Spread on Earning Assets            4.31%    4.15%
   Efficiency Ratio                           63.32%   66.30%

Twelve Months Ended December 31
   Net Income                               $132,957 $106,964  24.3%
   Basic Earnings Per Share                     1.66     1.33  24.8%
   Diluted Earnings Per Share                   1.64     1.32  24.2%
   Cash Dividends                             54,640   52,776

   Return on Average Assets                    0.91%    0.72%
   Return on Average Equity                   10.99%    9.21%
   Average Spread on Earning Assets            4.28%    4.22%
   Efficiency Ratio                           67.01%   68.95%


Summary of Results Excluding the Effect of Intangibles (a)

Three Months Ended December 31
   Net Income                                $42,317  $38,795   9.1%
   Basic Earnings per Share                    $0.53    $0.48  10.4%
   Diluted Earnings per Share                  $0.52    $0.48   8.3%
   Return on Average Assets                    1.19%    1.05%
   Return on Average Equity                   16.69%   15.89%
   Efficiency Ratio                           60.59%   64.15%

Twelve Months Ended December 31
   Net Income                               $149,747 $121,704  23.0%
   Basic Earnings per Share                    $1.86    $1.52  22.4%
   Diluted Earnings per Share                  $1.85    $1.50  23.3%
   Return on Average Assets                    1.04%    0.83%
   Return on Average Equity                   15.02%   12.84%
   Efficiency Ratio                           64.66%   66.83%

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

Statement of Condition                  Dec. 31    Dec. 31 Percentage
 Highlights and Performance Ratios        1999      1998     Change

Total Assets                         $14,440,315 $15,016,563  -3.8%
Net Loans                              9,280,848   9,416,809  -1.4%
Total Deposits                         9,394,218   9,576,342  -1.9%
Total Shareholders' Equity             1,212,330   1,185,594   2.3%

Book Value Per Common Share               $15.15      $14.76
Loss Reserve / Loans Outstanding           2.05%       2.19%
Average Equity / Average Assets            8.30%       7.81%

Common Stock Price Range                   High         Low
 1998 ........................            $25.88      $14.75
 1999 First Quarter...........            $24.94      $19.94
      Second Quarter..........            $23.25      $19.81
      Third Quarter...........            $22.31      $17.63
      Fourth Quarter..........            $23.50      $17.38



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

                          3 Months   3 Months    12 Months   12 Months
                            Ended      Ended       Ended       Ended
                            Dec 31     Dec 31      Dec 31      Dec 31
                            1999       1998         1999       1998
(in thousands of dollars
 except per share amounts)

Interest Income
 Interest on Loans          $178,889  $180,355    $699,939   $737,276
 Loan Fees                     9,809    10,280      39,899     45,340
 Income on Lease Financing     7,640     7,270      29,391     25,699
 Interest and Dividends
  on Investment Securities
   Taxable                    14,561    13,268      57,809     67,717
   Non-taxable                   274       273       1,094      1,096
 Income on Investment
  Securities Available
  for Sale                    41,841    43,857     168,349    170,963
 Interest on Deposits          4,569    10,896      24,960     36,676
 Interest on Security
  Resale Agreements                6        41         244         82
 Interest on Funds Sold          460       755       4,834      3,718

   Total Interest Income     258,049   266,995   1,026,519  1,088,567

Interest Expense
 Interest on Deposits         67,481    74,310     261,184    306,700
 Interest on Security
  Repurchase Agreements       21,554    27,097      92,175    121,445
 Interest on Funds Purchased  10,191     8,032      41,677     26,720
 Interest on Short-Term
  Borrowings                   3,631     4,035      12,414     14,376
 Interest on Long-Term Debt   12,146     9,988      44,326     42,725

   Total Interest Expense    115,003   123,462     451,776    511,966


  Net Interest Income        143,046   143,533     574,743    576,601

  Provision for Loan Losses   20,877    12,992      60,915     84,014

 Net Interest Income After
  Provision for Loan Losses  122,169   130,541     513,828    492,587
 Non-Interest Income
  Trust Income                16,047    14,318      60,700     55,879
  Service Charges on
   Deposit Accounts            8,559     9,512      34,267     35,459
  Fees, Exchange, and
   Other Service Charges      22,266    20,093      88,838     77,881
  Other Operating Income      17,210    10,307      67,720     38,446
  Investment Securities Gains  5,314     1,243      14,056      4,086

 Total Non-Interest Income    69,396    55,473     265,581    211,751

Non-Interest Expense
  Salaries                    46,650    48,614     198,743    194,522
  Pensions and Other
   Employee Benefits          11,956    13,827      55,343     56,003
  Net Occupancy Expense       12,255    11,805      47,893     46,799
  Net Equipment Expense       12,482    13,180      48,674     49,009
  Other Operating Expense     47,718    43,930     180,107    174,546
  Restructuring Charge            --        --      22,478     19,400
  Minority Interest              101      (241)        485        446

 Total Non-Interest Expense  131,162   131,115     553,723    540,725

  Income Before Income Taxes  60,403    54,899     225,686    163,613
  Provision for Income Taxes  22,804    19,886      92,729     56,649

  Net Income                 $37,599   $35,013    $132,957   $106,964

 Basic Earnings Per Share      $0.47     $0.44       $1.66      $1.33
 Diluted Earnings Per Share    $0.47     $0.43       $1.64      $1.32
 Dividends Declared Per Share  $0.17     $0.17       $0.68    $0.6575
 Basic Weighted
  Average Shares          80,199,539 80,307,913  80,298,725 80,228,424
 Diluted Weighted
  Average Shares          80,826,976 81,154,793  81,044,558 81,142,144


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

                                            December 31    December 31
(in thousands of dollars)                       1999           1998

Assets
Interest-Bearing Deposits                 $    278,473   $    453,527
Investment Securities - Held to Maturity
 (Market Value of $787,720 and $668,068,
 respectively)                                 796,322        652,802
Investment Securities
 - Available for Sale                        2,542,232      3,018,403
Securities Purchased Under
 Agreements to Resell                             --             --
Funds Sold                                      52,740         45,683
Loans                                        9,717,556      9,854,000
  Unearned Income                             (242,503)      (225,915)
  Reserve for Loan Losses                     (194,205)      (211,276)

   Net Loans                                 9,280,848      9,416,809

   Total Earning Assets                     12,950,615     13,587,224

Cash and Non-Interest Bearing Deposits         639,895        564,243
Premises and Equipment                         271,728        293,591
Customers' Acceptance Liability                  7,236          8,227
Accrued Interest Receivable                     78,974         85,485
Other Real Estate                                4,576          5,648
Intangibles, including Goodwill                205,904        216,106
Other Assets                                   281,387        256,039

      Total Assets                        $ 14,440,315   $ 15,016,563


Liabilities
Domestic Deposits
  Demand - Non-Interest Bearing             $1,676,425     $1,745,747
         - Interest Bearing                  2,076,358      2,385,285
  Savings                                      700,720        740,378
  Time                                       2,761,650      2,637,746
Foreign Deposits
  Demand - Non-Interest Bearing                401,613        489,672
  Time Due to Banks                            597,675        685,137
  Other Savings and Time                     1,179,777        892,377

      Total Deposits                         9,394,218      9,576,342

Securities Sold Under
 Agreements to Repurchase                    1,490,655      2,008,399
Funds Purchased                                839,962        942,062
Short-Term Borrowings                          458,962        356,822
Bank's Acceptances Outstanding                   7,236          8,227
Accrued Retirement Expense                      40,360         39,811
Accrued Interest Payable                        64,588         55,694
Accrued Taxes Payable                           85,022        114,443
Minority Interest                                4,435          7,394
Other Liabilities                              114,890        136,159
Long-Term Debt                                 727,657        585,616

     Total Liabilities                      13,227,985     13,830,969


Shareholders' Equity
Common Stock ($.01 par value),
authorized 500,000,000 shares;
issued / outstanding;
December 1999 - 80,550,728 / 80,036,417;
December 1998 - 80,512,372 / 80,325,998            806            805
 Capital Surplus                               345,851        342,932
 Accumulated Other Comprehensive Income        (66,106)       (22,476)
 Retained Earnings                             942,177        867,852
 Treasury Stock, at Cost -
 (December 1999 - 514,311 and
 December 1998 - 186,374 Shares)               (10,398)        (3,519)

     Total Shareholders' Equity              1,212,330      1,185,594

     Total Liabilities and Shareholders'
      Equity                               $14,440,315    $15,016,563



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, 1998   $1,185,594  $805  $342,932  ($22,476)
Comprehensive Income
 Net Income                       132,957     -         -         -
 Other Comprehensive Income,
  Net of Tax
  Investment Securities, Net of
  Reclassification Adjustment     (44,803)    -         -   (44,803)
 Foreign Currency Translation
  Adjustment                        1,154     -         -     1,154
 Pension Liability Adjustments         19     -         -        19


 Total Comprehensive Income


Common Stock Issued
  57,249 Profit Sharing Plan        1,096     -         4         -
 501,929 Stock Option Plan          8,616     -     2,620         -
 198,851 Dividend Reinvestment Plan 4,032     -       142         -
   7,199 Directors' Restricted Shares
         and Deferred Compensation
         Plan                         154     1       153         -
Treasury Stock Purchased          (21,849)    -         -         -
Cash Dividends Paid               (54,640)    -         -         -


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


Balance at December 31, 1997   $1,117,207 $159,369 $168,920 ($24,766)
Comprehensive Income
  Net Income                      106,964       -        -        -
  Other Comprehensive Income,
   Net of Tax
   Investment Securities,
   Net of Reclassification
   Adjustment                      (2,732)      -        -    (2,732)
  Foreign Currency Translation
   Adjustment                       5,671       -        -     5,671
  Pension Liability Adjustments      (649)      -        -      (649)


   Total Comprehensive Income


Common Stock Issued
   125,889 Profit Sharing Plan      3,559     225    2,627       -
   543,256 Stock Option Plan       10,084     530    8,408       -
   153,574 Dividend Reinvestment
           Plan                     5,441     199    3,335       -
     5,100 Directors' Restricted
           Shares and Deferred
           Compensation Plan          139       1      123       -
Treasury Stock Purchased           (7,314)      -        -       -
Change in par value of common
 stock from $2.00 per share
 to $.01 per share                      -  (159,519) 159,519     -
Cash Dividends Paid               (52,776)      -        -       -


Balance at December 31, 1998   $1,185,594  $    805 $342,932 ($22,476)


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, 1998         $867,852   ($3,519)
Comprehensive Income
 Net Income                           132,957         -     $132,957
 Other Comprehensive Income,
  Net of Tax
  Investment Securities, Net of
  Reclassification Adjustment               -         -      (44,803)
  Foreign Currency Translation Adjustment   -         -        1,154
  Pension Liability Adjustments             -         -           19


 Total Comprehensive Income                                 $ 89,327


Common Stock Issued
  57,249 Profit Sharing Plan              (71)    1,163
 501,929 Stock Option Plan             (3,651)    9,647
 198,851 Dividend Reinvestment Plan      (270)    4,160
   7,199 Directors' Restricted Shares
         and Deferred Compensation Plan     -         -
Treasury Stock Purchased                    -   (21,849)
Cash Dividends Paid                   (54,640)        -


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

Balance at December 31, 1997         $813,684        $-
Comprehensive Income
  Net Income                          106,964         -     $106,964
  Other Comprehensive Income,
  Net of Tax
  Investment Securities, Net of
  Reclassification Adjustment               -         -       (2,732)
   Foreign Currency Translation Adjustment  -         -        5,671
   Pension Liability Adjustments            -         -         (649)


   Total Comprehensive Income                               $109,254


Common Stock Issued
   125,889 Profit Sharing Plan              -       707
   543,256 Stock Option Plan              (20)    1,166
   153,574 Dividend Reinvestment Plan       -     1,907
     5,100 Directors' Restricted Shares and
             Deferred Compensation Plan     -        15
Treasury Stock Purchased                    -    (7,314)
Change in par value of common stock from
  $2.00 per share to $.01 per share         -         -
Cash Dividends Paid                   (52,776)        -


Balance at December 31, 1998         $867,852   ($3,519)



Consolidated Average Balances and Interest Rates
 Taxable Equivalent (Unaudited)
Pacific Century Financial Corporation and subsidiaries
(in millions of dollars)


                     Three Months Ended          Three Months Ended
                      December 31, 1999           December 31, 1998
                  Average  Income/   Yield/   Average  Income/  Yield/
                  Balance  Expense    Rate    Balance  Expense   Rate

Earning Assets
 Interest Bearing
  Deposits         $268.4     $4.6    6.75%    $510.0    $10.9   8.48%
 Investment
  Securities Held
  to Maturity
   -Taxable         794.4     14.6    7.27      670.0     13.3   7.86
   -Tax-Exempt       11.6      0.4   14.34       11.7      0.4  14.21
 Investment
  Securities
  Available
  for Sale        2,590.0     41.8    6.40    2,983.0     43.9   5.83
 Funds Sold          33.2      0.5    6.53       67.9      0.8   4.65
 Net Loans
  -Domestic       7,803.0    161.4    8.20    7,727.2    156.4   8.03
  -Foreign        1,688.6     25.1    5.91    1,762.9     31.2   7.03
 Loan Fees                     9.8                        10.3
   Total Earning
    Assets       13,189.2    258.2    7.77   13,732.7    267.2   7.72
Cash and Due
 From Banks         519.3                       585.0
Other Assets        650.8                       611.8
   Total
    Assets      $14,359.3                   $14,929.5

Interest Bearing
 Liabilities
  Domestic Deposits
   - Demand      $2,110.5     12.1    2.28   $2,074.1     13.3   2.54
   - Savings        711.9      3.7    2.03      755.1      3.9   2.07
   - Time         2,634.8     32.4    4.88    2,798.1     34.5   4.89
 Total Domestic   5,457.2     48.2    3.50    5,627.3     51.7   3.65

Foreign Deposits
 - Time Due
    to Banks        625.6      8.7    5.50      630.2     10.2   6.41
 - Other Time
    and Savings   1,171.7     10.6    3.60    1,188.5     12.4   4.14
 Total Foreign    1,797.3     19.3    4.26    1,818.7     22.6   4.92

 Total Interest
  Bearing
  Deposits        7,254.5     67.5    3.69    7,446.0     74.3   3.96
Short-Term
 Borrowings       2,707.6     35.4    5.18    3,031.9     39.2   5.12
Long-Term Debt      747.4     12.1    6.45      639.3     10.0   6.20

Total Interest
 Bearing
 Liabilities     10,709.5    115.0    4.26   11,117.2    123.5   4.41

Net Interest
 Income                      143.2                       143.7
Interest Rate
 Spread                               3.51%                      3.31%
Net Interest
 Margin                               4.31%                      4.15%
Demand Deposits
 - Domestic       1,662.8                     1,648.3
 - Foreign          457.5                       511.8
Total Demand
 Deposits         2,120.3                     2,160.1
Other
 Liabilities        315.3                       466.7
Shareholders'
 Equity           1,214.2                     1,185.5
  Total
   Liabilities and
   Shareholders'
   Equity       $14,359.3                   $14,929.5

Provision for
 Loan Losses                  20.9                        13.0
Net Overhead                  61.7                        75.6
Income Before
 Income Taxes                 60.6                        55.1
Provision for
 Income Taxes                 22.8                        19.9
Tax-Equivalent
 Adjustment                    0.2                         0.2
Net Income                   $37.6                       $35.0


                     Twelve Months Ended         Twelve Months Ended
                      December 31, 1999           December 31, 1998
                  Average  Income/   Yield/   Average  Income/  Yield/
                  Balance  Expense    Rate    Balance  Expense   Rate


Earning Assets
 Interest Bearing
  Deposits         $385.0    $24.9    6.48%    $508.8    $36.7   7.21%
 Investment
  Securities Held
  to Maturity
   -Taxable         805.2     57.8    7.18      890.6     67.7   7.60
   -Tax-Exempt       11.7      1.7   14.41       11.8      1.7  14.34
 Investment
  Securities
  Available
  for Sale        2,698.8    168.0    6.23    2,769.3    171.0   6.17
 Funds Sold         102.0      5.4    5.31       69.7      3.8   5.45
 Net Loans
  -Domestic       7,742.3    623.0    8.05    7,669.7    643.8   8.39
  -Foreign        1,702.2    106.4    6.25    1,752.6    119.2   6.80
 Loan Fees                    39.9                        45.3
  Total Earning
   Assets        13,447.2  1,027.1    7.64   13,672.5  1,089.2   7.97
Cash and Due
 From Banks         486.6                       590.1
Other Assets        649.1                       608.1
  Total Assets  $14,582.9                   $14,870.7


Interest Bearing
 Liabilities
  Domestic Deposits
   -Demand       $2,137.1     48.5    2.27   $2,114.8     55.7   2.64
   -Savings         723.9     14.7    2.03      783.9     18.5   2.35
   -Time          2,559.4    123.3    4.82    2,780.7    145.4   5.23
  Total Domestic  5,420.4    186.5    3.44    5,679.4    219.6   3.87

Foreign Deposits
 - Time Due
   to Banks         641.4     33.7    5.25      596.1     40.4   6.78
 - Other Time
   and Savings    1,165.7     41.0    3.52    1,176.1     46.7   3.97
 Total Foreign    1,807.1     74.7    4.13    1,772.2     87.1   4.91

 Total Interest
  Bearing
  Deposits        7,227.5    261.2    3.61    7,451.6    306.7   4.12

Short-Term
 Borrowings       3,014.8    146.2    4.85    3,072.9    162.6   5.29
Long-Term Debt      685.9     44.3    6.46      676.5     42.7   6.32

 Total Interest
  Bearing
  Liabilities    10,928.2    451.7    4.13   11,201.0    512.0   4.57

Net Interest
 Income                      575.4                       577.2
Interest
 Rate Spread                          3.51%                      3.40%
Net Interest
 Margin                               4.28%                      4.22%
Demand Deposits
 -Domestic        1,652.6                     1,650.4
 -Foreign           435.2                       447.7
Total Demand
 Deposits         2,087.8                     2,098.1
Other
 Liabilities        356.9                       410.8
Shareholders'
 Equity           1,210.0                     1,160.8
Total Liabilities
 and Shareholders'
 Equity         $14,582.9                   $14,870.7

Provision for
 Loan Losses                  60.9                        84.0
Net Overhead                 288.2                       329.0
Income Before
 Income Taxes                226.3                       164.2
Provision for
 Income Taxes                 92.7                        56.6
Tax-Equivalent
 Adjustment                    0.6                         0.6
Net Income                  $133.0                      $107.0



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
(in millions of dollars)        1999       1999      1999       1999

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

  Total Domestic                 77.9       93.2      95.9      103.5
 Foreign                         67.4       55.7      47.5       53.6

  Subtotal                      145.3      148.9     143.4      157.1

Restructured Loans
  Real Estate
   Commercial                       -          -         -          -

  Subtotal                          -          -         -          -

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

  Subtotal                        4.6        5.9       6.0        6.2

  Total Non-Performing Assets   149.9      154.8     149.4      163.3

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

  Total Domestic                 17.5       16.6      13.2       15.4
 Foreign                          1.0        5.0       8.2        6.3

   Subtotal                      18.5       21.6      21.4       21.7

      Total                    $168.4     $176.4    $170.8     $185.0


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

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%



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)    1998      1998     1998    1998     1997

Non-Accrual Loans
 Commercial and Industrial $ 28.2    $ 24.0   $ 23.7  $ 11.1   $ 10.7
 Real Estate
  Construction                2.9       4.4      2.2     6.4      1.0
  Commercial                  5.4       6.7      3.4     2.2      2.8
  Residential                36.4      35.9     35.2    36.7     32.9
 Installment                  0.8       0.9      1.9     2.3      2.0
 Leases                       0.7       0.8       --     0.3       --

  Total Domestic             74.4      72.7     66.4    59.0     49.4
 Foreign                     57.5      67.9     59.7    27.7     39.9

  Subtotal                  131.9     140.6    126.1    86.7     89.3

Restructured Loans
  Real Estate
   Commercial                  --        --      1.6     1.6      1.6

  Subtotal                     --        --      1.6     1.6      1.6

Foreclosed Real Estate
 Domestic                     5.5      10.8     11.6     6.1      6.2
 Foreign                      0.1       0.1       --      --       --

  Subtotal                    5.6      10.9     11.6     6.1      6.2

Total Non-Performing Assets 137.5     151.5    139.3    94.4     97.1


Accruing Loans Past Due
 90 Days or More
 Commercial and Industrial    0.4       7.3      2.4     2.2      2.0
 Real Estate
  Construction                0.4       0.6      4.2      --       --
  Commercial                   --       0.8      0.9     5.8      0.6
  Residential                 4.5       4.8      2.4     3.8      7.3
 Installment                  7.3       6.6      6.4     7.7      7.6
 Leases                       0.3       0.1      0.9     0.1      0.1

  Total Domestic             12.9      20.2     17.2    19.6     17.6
 Foreign                      7.9       7.1      4.9     4.8      7.4

   Subtotal                  20.8      27.3     22.1    24.4     25.0

      Total             $   158.3   $ 178.8  $ 161.4 $ 118.8  $ 122.1


Ratio of Non-Performing Assets
   to Total Loans            1.40%    1.59%    1.47%   1.00%     1.02%

Ratio of Non-Performing
 Assets and Accruing Loans
 Past Due 90 Days or More
 to Total Loan               1.61%    1.87%    1.71%    1.26%    1.29%



Pacific Century Financial Corporation and subsidiaries
Summary of Loan Loss Experience

                                   Fourth        Third        Second
                                   Quarter      Quarter       Quarter
(in millions of dollars)            1999         1999          1999

Average Amount of
 Loans Outstanding                $9,491.6     $9,421.7      $9,373.0

Balance of Reserve for
 Loan Losses at Beginning
 of Period                          $211.3       $209.6        $209.3
Loans Charged-Off
 Commercial and Industrial             2.8          0.3           7.6
 Real Estate
  Construction                         1.2            -           0.2
  Commercial                           2.2          0.1           0.2
  Residential                          2.2          2.0           1.6
 Installment                           6.0          6.2           6.9
 Leases                                  -          0.1           0.1

         Total Domestic               14.4          8.7          16.6
     Foreign                          28.2         11.8           2.8

Total Charged-Off                     42.6         20.5          19.4
Recoveries on Loans
 Previously Charged-Off
    Commercial and Industrial          1.1          3.4           1.5
    Real Estate
     Construction                      0.1            -             -
     Commercial                        0.6          0.8           0.1
     Residential                       0.4            -           0.2
    Installment                        2.0          2.0           2.0

          Total Domestic               4.2          6.2           3.8
     Foreign                           1.6          0.8           2.9

Total Recoveries                       5.8          7.0           6.7

Net Charge-Offs                      (36.8)       (13.5)        (12.7)
Provision Charged to
 Operating Expenses                   20.9         13.5          13.9
Other Net Additions
 (Reductions)(a)                      (1.2)         1.7          (0.9)

Balance at End of Period            $194.2       $211.3        $209.6

Ratio of Net Charge-Offs to
  Average Loans Outstanding
  (annualized)                        1.55%        0.57%         0.54%

Ratio of Reserve to
 Loans Outstanding                    2.05%        2.22%         2.23%

(a) Includes balance transfers, reserves acquired, and foreign

currency translation adjustments.

Pacific Century Financial Corporation and subsidiaries

Summary of Loan Loss Experience

                                    First     12 Months    12 Months
                                   Quarter      Ended        Ended
(in millions of dollars)            1999        1999         1998

Average Amount of
 Loans Outstanding                $9,491.9     $9,444.5    $9,422.3

Balance of Reserve for
 Loan Losses at Beginning
 of Period                          $211.3       $211.3      $174.4
Loans Charged-Off
 Commercial and Industrial             7.8         18.5        15.3
 Real Estate
  Construction                           -          1.4           -
  Commercial                           2.0          4.5         2.5
  Residential                          2.0          7.8         2.9
 Installment                           6.0         25.1        25.8
 Leases                                  -          0.2         0.7

         Total Domestic               17.8         57.5        47.2
     Foreign                           3.0         45.8        34.8

Total Charged-Off                     20.8        103.3        82.0
Recoveries on Loans
 Previously Charged-Off
    Commercial and Industrial          8.0         14.0         2.8
    Real Estate
     Construction                        -          0.1         0.1
     Commercial                        0.1          1.6         1.2
     Residential                         -          0.6         0.2
    Installment                        1.6          7.6         6.4

          Total Domestic               9.7         23.9        10.7
     Foreign                           0.3          5.6         5.6

Total Recoveries                      10.0         29.5        16.3

Net Charge-Offs                      (10.8)       (73.8)      (65.7)
Provision Charged to
 Operating Expenses                   12.6         60.9        84.0
Other Net Additions
 (Reductions)(a)                      (3.8)        (4.2)       18.6

Balance at End of Period            $209.3       $194.2      $211.3

Ratio of Net Charge-Offs to
  Average Loans Outstanding
  (annualized)                        0.46%        0.78%       0.70%

Ratio of Reserve to
 Loans Outstanding                    2.22%        2.05%       2.19%

(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            Dec. 31      Sep. 30      Jun. 30
  except per share amounts)          1999         1999        1999

Balance Sheet Totals
Total Assets                      $ 14,440.3   $ 14,505.4  $ 14,551.5
Net Loans                            9,280.8      9,321.5     9,181.7
Deposits                             9,394.2      9,290.4     9,286.2
Long-Term Debt                         727.7        794.8       654.8
Shareholders' Equity                 1,212.3      1,208.5     1,214.2


Quarterly Operating Results
Net Interest Income                  $ 143.0      $ 143.5     $ 144.4
Provision for Loan Losses               20.9         13.5        13.9
Non-Interest Income                     69.4         71.4        63.6
Non-Interest Expense                   131.2        155.6       132.1
Net Income                              37.6         21.5        38.5

Basic Earnings Per Share               $0.47        $0.27       $0.48
Diluted Earnings Per Share             $0.47        $0.27       $0.47

Return on Average Assets               1.04%        0.59%       1.05%
Return on Average Equity              12.29%        7.01%      12.72%
Efficiency Ratio                      63.32%       72.44%      65.67%
Normalized Efficiency Ratio (1)            -       61.98%          -

Excluding the Effects of
 Intangibles (2)
    Net Income                         $42.3        $25.9       $42.3
    Basic Earnings Per Share           $0.53        $0.32       $0.53
    Diluted Earnings Per Share         $0.52        $0.32       $0.52
    Return on Average Assets           1.19%        0.73%       1.18%
    Return on Average Equity          16.69%       10.25%      17.01%
    Efficiency Ratio                  60.59%       70.04%      63.53%
    Normalized Efficiency Ratio (1)       -        59.57%          -

(1) Excludes impact of $22.5 million restructuring charge in 1999's

Third Quarter. (2) Intangibles include goodwill, core deposit and trust intangibles,

and other intangibles.

Pacific Century Financial Corporation and subsidiaries

Quarterly Summary of Selected Consolidated Financial Data

(in millions of dollars                Mar. 31        Dec. 31
  except per share amounts)             1999            1998

Balance Sheet Totals
Total Assets                         $ 14,928.3     $ 15,016.6
Net Loans                               9,208.1        9,416.8
Deposits                                9,434.4        9,576.3
Long-Term Debt                            675.6          585.6
Shareholders' Equity                    1,207.6        1,185.6


Quarterly Operating Results
Net Interest Income                     $ 143.8        $ 143.5
Provision for Loan Losses                  12.6           13.0
Non-Interest Income                        61.2           55.5
Non-Interest Expense                      134.8          131.1
Net Income                                 35.4           35.0

Basic Earnings Per Share                  $0.44          $0.44
Diluted Earnings Per Share                $0.44          $0.43

Return on Average Assets                  0.96%          0.93%
Return on Average Equity                 12.00%         11.72%
Efficiency Ratio                         66.37%         66.30%
Normalized Efficiency Ratio (1)              -              -

Excluding the Effects of
 Intangibles (2)
    Net Income                            $39.3          $38.8
    Basic Earnings Per Share              $0.49          $0.48
    Diluted Earnings Per Share            $0.48          $0.48
    Return on Average Assets              1.08%          1.05%
    Return on Average Equity             16.21%         15.89%
    Efficiency Ratio                     64.25%         64.15%
    Normalized Efficiency Ratio (1)          -              -

(1) Excludes impact of $22.5 million restructuring charge in 1999's

Third Quarter. (2) Intangibles include goodwill, core deposit and trust intangibles,

and other intangibles.

*T

     CONTACT: Pacific Century Financial Corporation
              Media Inquiries:
              Stafford Kiguchi, 808-537-8580
              Investor/Analyst Inquiries:
              Sharlene Bliss, 808/537-8037