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Pacific Century Financial Corporation Reports Fourth Quarter Net Income of $32.6 Million and Earnings Per Share of 41 Cents

HONOLULU--(BUSINESS WIRE)--Jan. 25, 2001--

  • Non-Performing Assets Decline 17 percent from September 30, 2000 Level

  • Board of Directors Declares Quarterly Dividend of 18 Cents Per Share

Pacific Century Financial Corporation (NYSE:BOH) reported fourth quarter net income of $32.6 million, down 13.3 percent compared to $37.6 million for the fourth quarter of 1999. Diluted earnings per share were $0.41, down 12.8 percent relative to $0.47 reported for the fourth quarter of 1999.

For the fourth quarter of 2000, return on average assets was 0.94 percent and on a tangible basis was 1.07 percent. Return on average equity was 10.24 percent and on a tangible basis was 13.60 percent. The efficiency ratio was 60.5 percent and 58.2 percent on a tangible basis.

For the full-year 2000, Pacific Century Financial Corporation (PCFC) reported earnings of $113.7 million relative to $133.0 million posted for the full-year 1999. Diluted earnings per share were $1.42 compared to $1.64 for 1999. Tangible or "cash" diluted earnings per share totaled $1.63 versus $1.85 for the full-year 1999.

Key events in the fourth quarter:

  • PCFC's Board of Directors named Michael E. O'Neill, Chairman & Chief Executive Officer.

  • American Express Company and PCFC signed a definitive agreement for American Express Centurion Bank to acquire the credit card portfolio of Bank of Hawaii Credit Card, N.A., Bank of Hawaii's subsidiary.

  • PCFC's U.S. Mainland subsidiary Pacific Century Bank, N.A. (PCB) signed a definitive agreement with Zions Bancorporation, whereby Zions will acquire PCB's nine-branch Arizona franchise.

  • Bank of Hawaii sold its shareholding interests in the Bank of Tonga and Pacific Commercial Bank, Ltd. of Samoa to Australia-based Westpac Banking Corporation.

"In the fourth quarter, we took a number of steps that will enable us to improve our future operating performance," said PCFC Chairman & Chief Executive Officer Michael E. O'Neill. "We are committed to developing and executing strategies that will create long-term sustainable value for our shareholders."

Key events since the end of the fourth quarter 2000:

  • Two key executives joined PCFC's risk and asset recovery areas. William Nelson joined PCFC as Vice Chairman, Chief Risk Officer and a member of the company's Managing Committee. PCFC also hired Scott Miller as Executive Vice President and Director of Asset Recovery.

  • PCFC sold a $65 million problem loan first mentioned in the second quarter of 2000.

  • PCFC'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 March 14, 2001 to shareholders of record at the close of business on February 27, 2001.

"We are pleased with the significant progress made in addressing credit issues and will continue to give asset quality improvement our highest priority," said O'Neill.

Asset Quality Improvement

Non-performing assets (NPAs), exclusive of loans past due 90+ days were materially reduced by 16.7 percent during the quarter, dropping from $219.6 million at September 30, 2000 to $183.0 million at year-end 2000. NPAs totaled $149.9 million at December 31, 1999.

During the quarter, two commercial real estate non-accrual loans totaling approximately $29 million were repaid in full. In commercial and industrial (C&I), one syndicated non-accrual loan of $11.2 million returned to accrual status and two syndicated loans totaling $22.7 million were placed on non-accrual status. Charge-offs of four Asia loans totaling approximately $7.5 million and South Pacific loans, primarily in the French Territories totaling approximately $10.0 million also contributed to the reduction in NPAs.

Subsequent to year-end, PCFC took additional steps to improve asset quality by selling at a discount the $65 million problem loan first referenced in 2000's second quarter. As a result, the company will charge off the amount of the discount in the first quarter, which will be largely offset by reserves previously allocated for this credit. At year-end, this credit was carried as a performing loan.

Net charge-offs for the quarter totaled $25.6 million relative to $19.6 million in the third quarter of 2000 and $36.8 million in the fourth quarter of 1999. Domestic charge-offs during the quarter totaled $12.4 million, the largest components of which were $4.4 million (C&I) and $5.6 million (installment loans). Foreign loans charged off totaled $19.2 million with approximately $7.5 million contributed by Asia and the balance from the South Pacific as discussed earlier. Recoveries during the quarter totaled $6.0 million of which $2.4 million were on domestic loans and $3.6 million were foreign loans.

Provisioning for the quarter totaled $25.8 million, up from $20.2 million on a linked quarter basis and up from $20.9 million for last year's fourth quarter.

Year-over-year, the ratio of net charge-offs to average loans grew from 0.78 percent in 1999 to 0.94 percent for the year 2000. Over that same period the company grew its ratio of reserves to outstanding loans from 2.05 percent to 2.62 percent. The ratio of reserves to non-performing assets (exclusive of loans past due 90+ days) increased to 135 percent, from 130 percent at December 31, 1999.

Other Financial Highlights

Total assets at year-end 2000 fell by 3.0 percent to $14.0 billion, from $14.4 billion at December 31, 1999, but rose one-half percent from September 30, 2000. Correspondingly, loans at year-end 2000 totaled $9.7 billion, down less than one percent from both year-end 1999 and September 30, 2000.

On a linked quarter basis, PCFC managed its syndicated loan exposure lower by approximately $425 million, of which approximately $116 million were loans outstanding, with the balance being undrawn commitments. The company also reduced its Asia exposure by approximately $120 million in the fourth quarter. Both trends were inline with prior guidance.

The company experienced solid loan growth in its residential real estate portfolio which grew by 4.4 percent relative to the third quarter of 2000 and by 15.1 percent compared to year-end 1999.

Deposits ended 2000 at $9.1 billion, down 3.3 percent from year-end 1999, but up 2.9 percent relative to September 30, 2000. On a year-over-year basis, domestic deposits were unchanged at $7.2 billion, while foreign deposits fell by 14.5 percent. As discussed in prior quarters, the decline in foreign deposits is attributable to foreign currency translation adjustments and a reduced need for non-relationship funding. On a linked quarter basis, domestic deposits grew by 1.1 percent, while foreign deposits grew by 10.8 percent due to foreign currency movements and temporary customer deposit flows over year-end.

Net interest margin for the quarter rose to 4.29 percent from 4.25 percent in 2000's third quarter. The margin in 1999's fourth quarter was 4.31 percent. The margin has been stable, in spite of the volatility in interest rates over the last year.

Net interest income for the quarter on a fully taxable equivalent basis totaled $138.9 million, down from $139.6 million in 2000's third quarter, and down from $143.2 million in 1999's fourth quarter, reflecting a relatively stable margin and the continued downsizing of the balance sheet.

Non-interest income for the quarter, exclusive of securities transactions, totaled $65.9 million, up from $61.3 million in 2000's third quarter and up from $64.1 million in 1999's fourth quarter. Non-recurring items included $3.2 million in other operating income related to the sale of PCFC's minority interests in the Bank of Tonga and Pacific Commercial Bank. The fourth quarter of 1999 included $4.3 million in non-recurring income. Adjusting for these special items, non-interest income in the fourth quarter of 2000 grew 4.9 percent compared to the same period in 1999.

Non-interest expense for the quarter totaled $123.9 million, down one percent from 2000's third quarter and down 5.5 percent from 1999's fourth quarter. Non-interest expense for the full year 2000 reflects the significant positive impact of New Era. Exclusive of 1999's restructuring charge, non-interest expense for the year 2000 was $34.4 million lower than for 1999.

Positive Outlook for Hawaii's Economy

Another positive trend is the continuing strength of Hawaii's economy which grew at an estimated 3 percent in 2000, the highest growth rate since the current expansion began in 1997. Growth in 2000 was fueled by tourism which saw an increase in visitor arrivals and visitor days of 3.1 percent through November. All key construction industry measures experienced double-digit growth during the year and economists forecast that construction will replace tourism as the growth engine in 2001.

The consensus outlook for 2001 is for continued expansion with growth in real gross state product forecast to be 3.0 to 3.5 percent. Growth in visitor arrivals is expected to moderate to 3 percent because of a deceleration in U.S. economic growth. Economists noted that Hawaii's 2001 expansion would be sustained by 10 to 15 percent construction growth, which will support an unemployment rate below 4 percent and inflation of 2.5 percent.

While Hawaii economists expect continued growth in 2001, they recognize that Hawaii is not immune to an economic slowdown on the U.S. Mainland, particularly in California.

Guidance

Performance for 2001 will largely be dependent on the results of the Company's ongoing strategic assessment process previously announced by PCFC Chairman & CEO Michael O'Neill. PCFC's intent is to disclose those results together with the first quarter 2001 earnings release.

The credit card sale is anticipated to close in 2001's first quarter, while the Arizona branch franchise sale is scheduled to close in second quarter 2001. Additional gains may occur in the first quarter from the anticipated sale of PCFC's 2.5 percent ownership stake in Star Systems, Inc. to Concord EFS Inc. (Nasdaq:CEFT).

Pacific Century Financial Corporation is a $14 billion regional financial services 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.

Highlights      Pacific Century Financial Corporation and subsidiaries
----------------------------------------------------------------------
(in thousands of dollars except per share amounts)

Earnings Highlights                                         Percentage
and Performance Ratios                 2000         1999      Change
----------------------------------------------------------------------
Three Months Ended December 31
 Net Income                          $32,586      $37,599      -13.3%
 Basic Earnings Per Share               0.41         0.47      -12.8%
 Diluted Earnings Per Share             0.41         0.47      -12.8%
 Cash Dividends                       14,324       13,649

 Return on Average Assets               0.94%        1.04%
 Return on Average Equity              10.24%       12.29%
 Net Interest Margin                    4.29%        4.31%
 Efficiency Ratio                      60.52%       63.32%

Twelve Months Ended December 31
 Net Income                         $113,661     $132,957      -14.5%
 Basic Earnings Per Share               1.43         1.66      -13.9%
 Diluted Earnings Per Share             1.42         1.64      -13.4%
 Cash Dividends                       56,471       54,640

 Return on Average Assets               0.81%        0.91%
 Return on Average Equity               9.21%       10.99%
 Net Interest Margin                    4.27%        4.28%
 Efficiency Ratio                      60.50%       67.01%


Summary of Results Excluding the
 Effect of Intangibles (a)
----------------------------------------------------------------------
Three Months Ended December 31
 Net Income                          $36,711      $42,317      -13.2%
 Basic Earnings per Share              $0.46        $0.53      -13.2%
 Diluted Earnings per Share            $0.46        $0.52      -11.5%
 Return on Average Assets               1.07%        1.19%
 Return on Average Equity              13.60%       16.69%
 Efficiency Ratio                      58.19%       60.59%

Twelve Months Ended December 31
 Net Income                         $130,401     $149,747      -12.9%
 Basic Earnings per Share              $1.64        $1.86      -11.8%
 Diluted Earnings per Share            $1.63        $1.85      -11.9%
 Return on Average Assets               0.94%        1.04%
 Return on Average Equity              12.59%       15.02%
 Efficiency Ratio                      58.14%       64.66%

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


Statement of Condition Highlights 
and Performance Ratios                    
                             December 31    December 31    Percentage
                                    2000           1999        Change
----------------------------------------------------------------------
Total Assets                   $14,013,816    $14,440,315       -3.0%
Net Loans                        9,168,140      9,280,848       -1.2%
Total Deposits                   9,080,581      9,394,218       -3.3%
Total Shareholders' Equity       1,301,356      1,212,330        7.3%

Book Value Per Common Share         $16.35         $15.15
Loss Reserve / Loans Outstanding     2.62%          2.05%
Average Equity / Average Assets      8.78%          8.30%

Common Stock Price Range              High            Low
 1999 ..................            $24.94         $17.38
 2000 First Quarter.....            $20.38         $14.35
 Second Quarter.........            $23.19         $14.63
 Third Quarter..........            $17.50         $13.13
 Fourth Quarter.........            $18.75         $11.06

----------------------------------------------------------------------
Corporate Offices:
Financial Plaza of the Pacific
130 Merchant Street
Honolulu, Hawaii 96813

Inquiries:
David A. Houle
Executive Vice President, Treasurer
and Chief Financial Officer
(808) 537-8288


Consolidated Statements of Income (Unaudited)
                Pacific Century Financial Corporation and subsidiaries
----------------------------------------------------------------------
(in thousands               3 Months   3 Months   12 Months  12 Months
of dollars                  Ended      Ended      Ended      Ended
except per                  Dec 31     Dec 31     Dec 31     Dec 31
share amounts)              2000       1999       2000       1999
----------------------------------------------------------------------
Interest Income
 Interest on Loans           $191,406   $178,889   $750,141   $699,939
 Loan Fees                      8,718      9,809     33,620     39,899
 Income on Lease Financing      9,696      7,640     37,357     29,391
 Interest and Dividends on
  Investment Securities
   Taxable                     12,509     14,561     53,009     57,809
   Non-taxable                    139        274        902      1,094
 Income on Investment
  Securities Available for 
  Sale                         41,145     41,841    165,111    168,349
 Interest on Deposits           3,746      4,569     14,663     24,960
 Interest on Security 
  Resale Agreements                87          6        158        244
 Interest on Funds Sold           997        460      2,532      4,834
----------------------------------------------------------------------
   Total Interest Income      268,443    258,049  1,057,493  1,026,519

Interest Expense
 Interest on Deposits          73,595     67,481    286,035    261,184
 Interest on Security 
  Repurchase Agreements        28,621     21,554    104,536     92,175
 Interest on Funds 
  Purchased                     7,315     10,191     32,636     41,677
 Interest on Short-Term 
  Borrowings                    3,174      3,631     18,959     12,414
 Interest on Long-Term Debt    16,925     12,146     59,096     44,326
----------------------------------------------------------------------
   Total Interest Expense     129,630    115,003    501,262    451,776
----------------------------------------------------------------------
Net Interest Income           138,813    143,046    556,231    574,743
Provision for Loan Losses      25,779     20,877    142,853     60,915
----------------------------------------------------------------------
Net Interest Income After 
 Provision for Loan Losses    113,034    122,169    413,378    513,828
Non-Interest Income
 Trust Income                  16,999     16,047     66,077     60,700
 Service Charges on Deposit
  Accounts                     10,252      8,559     40,063     34,267
 Fees, Exchange, and Other 
  Service Charges              21,574     22,266     88,500     88,838
 Other Operating Income        17,115     17,210     58,463     67,720
 Gain on Settlement of 
  Pension Obligation               --         --     11,900         --
 Investment Securities 
  Gains (Losses)               (1,259)     5,314     (1,574)    14,056
----------------------------------------------------------------------
   Total Non-Interest Income   64,681     69,396    263,429    265,581

Non-Interest Expense
 Salaries                      44,442     46,650    181,669    198,743
 Pensions and Other 
  Employee Benefits            10,204     11,956     47,925     55,343
 Net Occupancy Expense         11,916     12,255     48,789     47,893
 Net Equipment Expense         13,109     12,482     50,607     48,674
 Other Operating Expense       44,139     47,718    167,440    180,107
 Restructuring Charge              --         --         --     22,478
 Minority Interest                101        101        387        485
----------------------------------------------------------------------
  Total Non-Interest Expense  123,911    131,162    496,817    553,723
----------------------------------------------------------------------
Income Before Income Taxes     53,804     60,403    179,990    225,686
Provision for Income Taxes     21,218     22,804     66,329     92,729
----------------------------------------------------------------------
Net Income                    $32,586    $37,599   $113,661   $132,957
======================================================================

Basic Earnings Per Share        $0.41      $0.47      $1.43      $1.66
Diluted Earnings Per Share      $0.41      $0.47      $1.42      $1.64
Dividends Declared Per 
 Share                          $0.18      $0.17      $0.71      $0.68
Basic Weighted Average 
 Shares                    79,534,105 80,199,539 79,551,296 80,298,725
Diluted Weighted Average 
 Shares                    79,747,220 80,826,976 79,813,443 81,044,558
======================================================================


Consolidated Statements of Condition (Unaudited)
                Pacific Century Financial Corporation and subsidiaries
----------------------------------------------------------------------
                                         December 31      December 31
(in thousands of dollars)                       2000             1999
----------------------------------------------------------------------
Assets
Interest-Bearing Deposits                   $188,649         $278,473
Investment Securities -- Held to Maturity
 (Market Value of $676,621 and
 $787,720, respectively)                     670,038          796,322
Investment Securities --
 Available for Sale                        2,507,076        2,542,232
Securities Purchased Under
 Agreements to Resell                          3,969                -
Funds Sold                                   134,644           52,740
Loans                                      9,668,290        9,717,556
 Unearned Income                            (253,903)        (242,503)
 Reserve for Loan Losses                    (246,247)        (194,205)
----------------------------------------------------------------------
  Net Loans                                9,168,140        9,280,848
----------------------------------------------------------------------
  Total Earning Assets                    12,672,516       12,950,615

Cash and Non-Interest Bearing Deposits       523,969          639,895
Premises and Equipment                       254,621          271,728
Customers' Acceptance Liability               14,690            7,236
Accrued Interest Receivable                   68,585           78,974
Other Real Estate                              4,526            4,576
Intangibles, including Goodwill              192,264          205,904
Other Assets                                 282,645          281,387
----------------------------------------------------------------------
 Total Assets                            $14,013,816      $14,440,315
======================================================================

Liabilities
Domestic Deposits
 Demand -- Non-Interest Bearing           $1,707,724       $1,676,425
        -- Interest Bearing                2,008,730        2,076,358
 Savings                                     665,239          700,720
 Time                                      2,836,083        2,761,650
Foreign Deposits
 Demand -- Non-Interest Bearing              385,366          401,613
 Time Due to Banks                           535,126          597,675
 Other Savings and Time                      942,313        1,179,777
----------------------------------------------------------------------
  Total Deposits                           9,080,581        9,394,218

Securities Sold Under
 Agreements to Repurchase                  1,655,173        1,490,655
Funds Purchased                              413,241          839,962
Short-Term Borrowings                        211,481          458,962
Bank's Acceptances Outstanding                14,690            7,236
Accrued Retirement Expense                    37,868           40,360
Accrued Interest Payable                      72,460           64,588
Accrued Taxes Payable                        130,766           85,022
Minority Interest                              4,536            4,435
Other Liabilities                             94,512          114,890
Long-Term Debt                               997,152          727,657
----------------------------------------------------------------------
 Total Liabilities                        12,712,460       13,227,985

Shareholders' Equity
Common Stock ($.01 par value), authorized
 500,000,000 shares; issued/outstanding; 
 December 2000 -- 80,558,811 / 79,612,178;
 December 1999 -- 80,550,728 / 80,036,417        806              806
Capital Surplus                              346,045          345,851
Accumulated Other Comprehensive Income       (25,079)         (66,106)
Retained Earnings                            996,791          942,177
Treasury Stock, at Cost -- (December 2000
 -- 946,633; December 1999 -- 514,311)       (17,207)         (10,398)
----------------------------------------------------------------------
  Total Shareholders' Equity               1,301,356        1,212,330
----------------------------------------------------------------------
  Total Liabilities and
   Shareholders' Equity                  $14,013,816      $14,440,315
======================================================================



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


                                                    Common     Capital
(in thousands of dollars)                 Total      Stock     Surplus
----------------------------------------------------------------------
Balance at December 31, 1999         $1,212,330       $806    $345,851
Comprehensive Income
 Net Income                             113,661          -           -
 Other Comprehensive Income, Net of Tax
  Investment Securities, Net of
   Reclassification Adjustment           45,300          -           -
  Foreign Currency Translation
   Adjustment                            (4,273)         -           -
 Total Comprehensive Income    

Common Stock Issued
  86,670 Profit Sharing Plan              1,470          -          18
 228,438 Stock Option Plan                2,948          -           3
 193,689 Dividend Reinvestment Plan       3,261          -          51
   6,901 Directors' Restricted Shares
         and Deferred Compensation 
         Plan                               122          -         122
Treasury Stock Purchased                (16,992)         -           -
Cash Dividends Paid                     (56,471)         -           -
----------------------------------------------------------------------
Balance at December 31, 2000         $1,301,356       $806    $346,045
======================================================================
Balance at December 31, 1998         $1,185,594       $805    $342,932
Comprehensive Income
 Net Income                             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

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
======================================================================

                      Accumulated                                
                            Other                                
                    Comprehensive   Retained   Treasury  Comprehensive
                           Income   Earnings      Stock         Income
----------------------------------------------------------------------
Balance at December 31, 
 1999                    ($66,106)   $942,177   ($10,398)
Comprehensive Income          
 Net Income                     -     113,661          -     $113,661 
 Other Comprehensive 
  Income, Net of Tax 
   Investment Securities,
    Net of Reclassification
    Adjustment             45,300           -          -       45,300
   Foreign Currency 
    Translation Adjustment (4,273)          -          -       (4,273)
                                                         -------------
 Total Comprehensive Income                                  $154,688 
                                                         =============

Common Stock Issued                                                   
  86,670 Profit Sharing 
          Plan                  -        (230)     1,682
 228,438 Stock Option Plan      -      (1,763)     4,708
 193,689 Dividend 
          Reinvestment Plan     -        (583)     3,793
   6,901 Directors' Restricted 
          Shares and Deferred 
          Compensation Plan     -           -          -
Treasury Stock Purchased        -           -    (16,992)
Cash Dividends Paid             -     (56,471)         -
----------------------------------------------------------------------
Balance at December 31, 
 2000                    ($25,079)   $996,791   ($17,207)
======================================================================
Balance at December 31, 
 1998                    ($22,476)   $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)          -          -      (44,803)
  Foreign Currency 
   Translation Adjustment   1,154           -          -        1,154
  Pension Liability
   Adjustments                 19           -          -           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                    ($66,106)   $942,177   ($10,398)
======================================================================


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, 2000      December 31, 1999
                  Average  Income/  Yield/   Average  Income/  Yield/
                  Balance  Expense   Rate    Balance  Expense    Rate
----------------------------------------------------------------------

Earning Assets
Interest
 Bearing
 Deposits        $  215.7  $ 3.7    6.91%  $  268.4     $ 4.6    6.75%
Investment       
 Securities      
 Held to         
 Maturity        
 -- Taxable         687.0   12.5    7.24      794.4      14.6    7.27
 -- Tax-Exempt        3.8    0.2   22.24       11.6       0.4   14.34
Investment       
 Securities      
 Available       
 for sale         2,478.4   41.2    6.60    2,590.0      41.8    6.40
Funds Sold           66.8    1.1    6.46       33.2       0.5    6.53
Net Loans        
 -- Domestic      8,108.3  178.7    8.76    7,803.0     161.4    8.20
 -- Foreign       1,319.9   22.5    6.78    1,688.6      25.1    5.91
Loan Fees                    8.7                          9.8

 Total Earning         
  Assets         12,879.9  268.6    8.30   13,189.2     258.2     7.77

Cash and Due
 From Banks                404.6                        519.3
Other Assets               503.3                        650.8
                       ----------                    --------
Total Assets          $ 13,787.8                    $14,359.3
                       ==========                    ========

                      Twelve Months Ended    Twelve Months Ended
                      December 31, 2000      December 31, 1999  
                  Average  Income/  Yield/   Average  Income/  Yield/
                  Balance  Expense   Rate    Balance  Expense    Rate

Earning Assets
Interest
 Bearing                                                              
 Deposits       $   216.2  $14.7   6.78%   $  385.0   $  24.9    6.48%
Investment                                                            
 Securities
 Held to
 Maturity
 -- Taxable         724.3   53.0    7.32      805.2      57.8     7.18
 -- Tax-Exempt        7.6    1.4   18.24       11.7       1.7    14.41
Investment                                                            
 Securities   
 Available    
for sale          2,502.5  165.1    6.60    2,698.8     168.0     6.23
Funds Sold           43.2    2.7    6.22      102.0       5.4     5.31
Net Loans
 -- Domestic      8,076.4  690.1    8.55    7,742.3     623.0     8.05
 -- Foreign       1,467.9   97.7    6.65    1,702.2     106.4     6.25
Loan Fees                   33.6                         39.9

 Total Earning
  Assets        13,038.1  1,058.3   8.12   13,447.2   1,027.1     7.64

Cash and Due  
 From Banks        443.2                      486.6  
Other Assets       574.0                      649.1
                --------                   --------    
 Total Assets  $14,055.3                   14,582.9
                ========                   ========    


Pacific Century Financial Corporation and subsidiaries

Consolidated Average Balances and Interest Rates Taxable Equivalent 
(Unaudited)
----------------------------------------------------------------------
                   Three Months Ended           Three Months Ended    
                   December 31, 2000             December 31, 1999    

(in                                                                   
millions        Average  Income/  Yield/    Average   Income/   Yield/
of dollars)     Balance  Expense   Rate     Balance   Expense     Rate
----------------------------------------------------------------------

Interest 
 Bearing 
 Liabilities
 Domestic 
 Deposit
   - Demand    $1,991.6   12.1     2.41     $2,110.5    12.1   2.28
   - Savings      667.5    3.4     2.03        711.9     3.7   2.03
   - Time       2,815.6   42.3     5.98      2,634.8    32.4   4.88
              --------------------------  ---------------------------
  Total 
   Domestic     5,474.7   57.8     4.20      5,457.2    48.2   3.50
Foreign 
 Deposits
  - Time Due 
     to Banks     557.9    8.7     6.23        625.6     8.7   5.50
  - Other Time 
     and 
     Savings      768.9    7.1     3.65      1,171.7    10.6   3.60
              --------------------------  --------------------------- 
  Total 
   Foreign      1,326.8   15.8     4.73      1,797.3    19.3   4.26
              --------------------------  --------------------------- 
Total Interest 
 Bearing 
 Deposits       6,801.5   73.6     4.30      7,254.5    67.5   3.69
Short-Term 
 Borrowings     2,437.1   39.1     6.38      2,707.6    35.4   5.18
Long-Term 
 Debt           1,001.6   17.0     6.72        747.4    12.1   6.45
              --------------------------  ---------------------------  
Total Interest 
 Bearing 
 Liabilities   10,240.2  129.7     5.04     10,709.5   115.0   4.26
              --------------------------  --------------------------- 
Net Interest 
 Income                  138.9                         143.2
Interest Rate 
 Spread                            3.26%                       3.51%
Net Interest 
 Margin                            4.29%                       4.31%
Demand 
 Deposits 
 - Domestic     1,610.8                      1,662.8           
 - Foreign        354.7                        457.5           
              ----------                  -----------          
Total Demand 
 Deposits       1,965.5                      2,120.3           
Other 
 Liabilities      315.6                        315.3           
Shareholders' 
 Equity         1,266.5                      1,214.2           
              ----------                  -----------          
Total 
 Liabilities 
 and 
 Shareholders' 
 Equity       $13,787.8                    $14,359.3           
              ==========                  ===========          

Provision for 
 Loan Losses              25.8                          20.9     
Net Overhead              59.2                          61.7     
                         --------                      -----   
Income Before 
 Income Taxes             53.9                          60.6     
Provision for 
 Income Taxes             21.2                          22.8     
Tax-Equivalent 
 Adjustment                0.1                           0.2     
                         --------                      -----   
Net Income               $32.6                         $37.6     
                         ========                      =====   





                   Twelve Months Ended        Twelve Months Ended
                    December 31, 2000           December 31, 1999
               Average   Income/  Yield/    Average   Income/  Yield/
               Balance   Expense   Rate     Balance   Expense   Rate
Interest         
 Bearing      
 Liabilities  
 Domestic     
 Deposit
   - Demand    $2,061.9   48.7     2.36    $2,137.1     48.5   2.27
   - Savings      684.8   13.9     2.03       723.9     14.7   2.03
   - Time       2,781.1  154.1     5.54     2,559.4    123.3   4.82
              --------------------------  ---------------------------
  Total
   Domestic     5,527.8  216.7     3.92     5,420.4    186.5   3.44
Foreign
 Deposits
  - Time Due
     to Banks     505.4   30.4     6.03       641.4     33.7   5.25
  - Other Time
     and
     Savings      960.5   38.9     4.05     1,165.7     41.0   3.52
              --------------------------  ---------------------------
  Total
   Foreign      1,465.9   69.3     4.73     1,807.1     74.7   4.13
              --------------------------  ---------------------------
Total Interest
 Bearing
 Deposits       6,993.7  286.0     4.09     7,227.5    261.2   3.61
Short-Term
 Borrowings     2,597.4  156.1     6.01     3,014.8    146.2   4.85
Long-Term
 Debt             886.9   59.1     6.66       685.9     44.3   6.46
              --------------------------  ---------------------------
Total Interest
 Bearing
 Liabilities   10,478.0  501.2     4.78    10,928.2    451.7   4.13
              --------------------------  ---------------------------
Net Interest
 Income                  557.1                         575.4
Interest Rate
 Spread                            3.34%                       3.51%
Net Interest
 Margin                            4.27%                       4.28%
Demand
 Deposits
 - Domestic     1,640.0                     1,652.6
 - Foreign        371.4                       435.2
               ---------                   ---------
Total Demand
 Deposits       2,011.4                     2,087.8
Other
 Liabilities      331.3                       356.9 
Shareholders'
 Equity         1,234.6                     1,210.0
               ---------                   ---------
Total
 Liabilities
 and
 Shareholders'
 Equity       $14,055.3                   $14,582.9                          
               =========                   =========                          

Provision for                                                                                       
 Loan Losses             142.9                          60.9                    
Net Overhead             233.4                         288.2                    
                        -------                       ------            
Income Before                                                                                       
 Income Taxes            180.8                         226.3                    
Provision for                                                                                       
 Income Taxes             66.3                          92.7                    
Tax-Equivalent                                                                                      
 Adjustment                0.8                           0.6                    
                        -------                       ------          
Net Income              $113.7                        $133.0                    
                        =======                       ======

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  Dec 31  Sep 30
(in millions of          2000    2000    2000     2000    1999    1999
 dollars)
----------------------------------------------------------------------
Non-Accrual Loans
 Commercial and
  Industrial            $55.4   $49.0   $52.7   $20.1   $23.7   $31.7
 Real Estate
  Construction            6.4     8.1     8.0     0.9     1.1     2.1
  Commercial             60.1    86.8    62.2    18.2    19.0    20.8
  Residential            22.7    22.0    23.2    23.2    29.7    33.1
 Installment               --     0.1     0.1     0.5     0.5     0.7
 Leases                   0.4     0.2     0.3     3.7     3.9     4.8

    Total Domestic      145.0   166.2   146.5    66.6    77.9    93.2
 Foreign                 33.5    48.3    59.2    65.2    67.4    55.7

    Subtotal            178.5   214.5   205.7   131.8   145.3   148.9

Foreclosed Real Estate
 Domestic                 4.2     4.9     4.6     4.3     4.3     5.6
 Foreign                  0.3     0.2     0.3     0.3     0.3     0.3

    Subtotal              4.5     5.1     4.9     4.6     4.6     5.9

   Total Non-
    Performing Assets   183.0   219.6   210.6   136.4   149.9   154.8


Accruing Loans Past
Due 90 Days or More
 Commercial and
  Industrial              5.0     2.2     4.7     6.7     5.9     6.2
 Real Estate
  Construction             --     0.1      --      --      --     0.5
  Commercial              1.3     4.9     2.0     2.1     1.9     2.4
  Residential             3.3     7.2     3.5     5.0     4.0     2.8
 Installment              5.6     4.6     4.0     4.7     4.5     4.5
 Leases                   0.4     0.1     1.5     1.4     1.2     0.2

    Total Domestic       15.6    19.1    15.7    19.9    17.5    16.6
 Foreign                  3.2     1.5     1.3     3.2     1.0     5.0

    Subtotal             18.8    20.6    17.0    23.1    18.5    21.6

  Total                $201.8  $240.2  $227.6  $159.5  $168.4  $176.4

Ratio of Non-
 Performing Assets
 to Total Loans         1.89%   2.25%   2.09%   1.39%   1.54%   1.59%

Ratio of Non-
 Performing Assets
 and Accruing Loans
 Past Due 90 Days
 or More to Total
 Loans                  2.09%   2.46%   2.26%   1.63%   1.73%   1.81%


Pacific Century Financial Corporation and subsidiaries
Consolidated Non-Performing Assets and Accruing Loans Past
 Due 90 Days or More                                       (Unaudited)
----------------------------------------------------------------------
                       Jun 30  Mar 31   Dec 31
(in millions of          1999    1999     1998
 dollars)
----------------------------------------------------------------------

Non-Accrual Loans
 Commercial and
  Industrial            $37.5   $39.1   $28.2
 Real Estate
  Construction            0.8     3.1     2.9
  Commercial             17.2    18.7     5.4
  Residential            35.2    37.6    36.4
 Installment              0.8     0.5     0.8
 Leases                   4.4     4.5     0.7

    Total Domestic       95.9   103.5    74.4
 Foreign                 47.5    53.6    57.5

    Subtotal            143.4   157.1   131.9

Foreclosed Real
Estate
 Domestic                 5.8     6.1     5.5
 Foreign                  0.2     0.1     0.1

    Subtotal              6.0     6.2     5.6

   Total Non-
    Performing
    Assets              149.4   163.3   137.5

Accruing Loans Past
Due 90 Days or More
 Commercial and
  Industrial              3.9     4.3     0.4
 Real Estate
  Construction            0.2     0.2     0.4
  Commercial              0.2     0.4      --
  Residential             3.7     3.5     4.5
 Installment              5.2     6.9     7.3
 Leases                    --     0.1     0.3

    Total Domestic       13.2    15.4    12.9
 Foreign                  8.2     6.3     7.9

    Subtotal             21.4    21.7    20.8

    Total              $170.8  $185.0  $158.3


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

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



Pacific Century Financial Corporation and subsidiaries
Summary of Loan Loss Experience
----------------------------------------------------------------------
                                  Fourth       Third        Second
                                  Quarter      Quarter      Quarter
(in millions of                   2000         2000         2000
 dollars)
----------------------------------------------------------------------

Average Amount of
 Loans Outstanding              $9,428.2      $9,628.6      $9,636.9

Balance of Reserve
 for Loan Losses
 at Beginning of
 Period                           $245.0        $246.6        $195.4
Loans Charged-Off
 Commercial and
  Industrial                         4.4           8.0           8.3
 Real Estate
   Construction                      0.1            --           0.5
   Commercial                        0.9           2.8           7.6
   Residential                       1.3           1.5           1.3
 Installment                         5.6           4.6           5.2
 Leases                              0.1           0.2           0.2

    Total Domestic                  12.4          17.1          23.1
 Foreign                            19.2           9.5          13.4

Total Charged-Off                   31.6          26.6          36.5
Recoveries on Loans
Previously
Charged-Off
 Commercial and Industrial           0.4           2.2           1.2
 Real Estate
  Construction                        --            --            --
  Commercial                         0.3           0.1           0.1
  Residential                        0.1           0.3           0.2
 Installment                         1.6           1.7           1.9

    Total Domestic                   2.4           4.3           3.4
 Foreign                             3.6           2.7           0.2

Total Recoveries                     6.0           7.0           3.6

Net Charge-Offs                    (25.6)        (19.6)        (32.9)
Provision Charged
 to Operating
 Expenses                           25.8          20.2          83.4
Other Net Additions
 (Reductions)(1)                     1.0          (2.2)          0.7

Balance at End of Period          $246.2        $245.0        $246.6

Ratio of Net
 Charge-Offs to
 Average Loans
 Outstanding
 (annualized)                        1.09%         0.81%         1.37%

Ratio of Reserve
 to Loans
 Outstanding                         2.62%         2.58%         2.53%

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

Pacific Century Financial Corporation and subsidiaries
Summary of Loan Loss Experience
----------------------------------------------------------------------
                                  First         Twelve       Twelve
                                  Quarter       Months       Months
(in millions of                   2000          2000         1999
 dollars)
----------------------------------------------------------------------

Average Amount of
 Loans Outstanding              $9,484.1      $9,544.3      $9,444.5

Balance of Reserve
 for Loan Losses
 at Beginning of
 Period                           $194.2        $194.2        $211.3
Loans Charged-Off
 Commercial and
  Industrial                         1.4          22.1          18.5
 Real Estate
   Construction                       --           0.6           1.4
   Commercial                        3.9          15.2           4.5
   Residential                       2.4           6.5           7.8
 Installment                         4.7          20.1          25.1
 Leases                               --           0.5           0.2

    Total Domestic                  12.4          65.0          57.5
 Foreign                             3.7          45.8          45.8

Total Charged-Off                   16.1         110.8         103.3
Recoveries on Loans
Previously
Charged-Off
 Commercial and Industrial           1.7           5.5          14.0
 Real Estate
  Construction                        --            --           0.1
  Commercial                         0.1           0.6           1.6
  Residential                        0.5           1.1           0.6
 Installment                         1.7           6.9           7.6

    Total Domestic                   4.0          14.1          23.9
 Foreign                             0.8           7.3           5.6

Total Recoveries                     4.8          21.4          29.5

Net Charge-Offs                    (11.3)        (89.4)        (73.8)
Provision Charged
 to Operating
 Expenses                           13.5         142.9          60.9
Other Net Additions
 (Reductions)(1)                    (1.0)         (1.5)         (4.2)

Balance at End of Period          $195.4        $246.2        $194.2

Ratio of Net
 Charge-Offs to
 Average Loans
 Outstanding
 (annualized)                      0.48%         0.94%         0.78%


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

(1) 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)
                     Dec. 31      Sep. 30       Jun. 30       Mar. 31
                       2000         2000          2000          2000
----------------------------------------------------------------------

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

Quarterly Operating
 Results
Net Interest
 Income               $138.8       $139.3        $138.6        $139.5
Provision for
 Loan Losses            25.8         20.1          83.4          13.5
Non-Interest
 Income                 64.7         61.3          73.6          63.9
Non-Interest
 Expense               123.9        124.9         121.9         126.1
Net Income              32.6         34.6           6.7          39.8

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

Return on
 Average Assets         0.94%        0.98%         0.19%         1.13%
Return on
 Average Equity        10.24%       11.20%         2.19%        13.19%
Efficiency Ratio       60.52%       62.26%        57.31%        62.06%
Normalized
 Efficiency
 Ratio (1)                --           --            --            --

Excluding the
Effects of
Intangibles (2)
 Net Income            $36.7        $38.8         $11.0         $43.9
 Basic Earnings
  Per Share            $0.46        $0.49         $0.14         $0.55
 Diluted Earnings
  Per Share            $0.46        $0.49         $0.14         $0.55
 Return on
 Average Assets         1.07%        1.12%         0.32%         1.26%
 Return on
 Average Equity        13.60%       14.94%         4.30%        17.54%
 Efficiency Ratio      58.19%       59.83%        54.96%        59.73%
 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.


Pacific Century Financial Corporation and subsidiaries
Quarterly Summary of Selected Consolidated Financial Data
----------------------------------------------------------------------
(in millions of dollars except per share amounts)

                     Dec. 31     Sept. 30       Jun. 30       Mar. 31
                       1999         1999          1999          1999
----------------------------------------------------------------------

Balance Sheet Totals
Total Assets       $14,440.3    $14,505.4     $14,551.5     $14,928.3
Net Loans            9,280.8      9,321.5       9,181.7       9,208.1
Deposits             9,394.2      9,290.4       9,286.2       9,434.4
Long-Term Debt         727.7        794.8         654.8         675.6
Shareholders'
 Equity              1,212.3      1,208.5       1,214.2       1,207.6


Quarterly Operating
 Results
Net Interest
 Income               $143.0       $143.5        $144.4        $143.8
Provision for
 Loan Losses            20.9         13.5          13.9          12.6
Non-Interest
 Income                 69.4         71.4          63.6          61.2
Non-Interest
 Expense               131.2        155.6         132.1         134.8
Net Income              37.6         21.5          38.5          35.4

Basic Earnings
 Per Share             $0.47        $0.27         $0.48         $0.44
Diluted Earnings
 Per Share             $0.47        $0.27         $0.47         $0.44

Return on
 Average Assets         1.04%        0.59%         1.05%         0.96%
Return on
 Average Equity        12.29%        7.01%        12.72%        12.00%
Efficiency Ratio       63.32%       72.44%        65.67%        66.37%
Normalized
 Efficiency
 Ratio (1)                --        61.98%           --            --

Excluding the
Effects of
Intangibles (2)
 Net Income            $42.3        $25.9         $42.3         $39.3
 Basic Earnings
  Per Share            $0.53        $0.32         $0.53         $0.49
 Diluted Earnings
  Per Share            $0.52        $0.32         $0.52         $0.48
 Return on
 Average Assets         1.19%        0.72%         1.18%         1.08%
 Return on
 Average Equity        16.69%       10.25%        17.01%        16.21%
 Efficiency Ratio      60.59%       70.04%        63.53%        64.25%
 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.

CONTACT: Bank of Hawaii, Honolulu
Stafford Kiguchi, 808/537-8580 (Media)
skiguchi@boh.com
Sharlene Bliss, 808/537-8037 (Investor/Analyst)
sbliss@boh.com