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Pacific Century Financial Corporation Second Quarter 2001 Financials
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HONOLULU--(BUSINESS WIRE)--July 23, 2001--Pacific Century Financial (NYSE:BOH - news):

  • Net Income $26.7 Million or $0.32 Per Share
  • Core Net Income Increases to $30.9 Million or $0.37 Per Share
  • Board of Directors Approves $70 Million Share Repurchase Program
  • Board of Directors Declares Dividend of $0.18 Per Share

Pacific Century Financial Corporation (NYSE:BOH - news) today reported second quarter 2001 diluted earnings per share of $0.32, compared to $0.42 for the first quarter of 2001 and $0.08 for the second quarter of 2000. Net income for the period was $26.7 million, down $7.0 million from the $33.7 million reported in the first quarter of 2001 and up $20.0 million from the $6.7 million reported in the second quarter of 2000. Pacific Century Financial Corporation also announced its intention to repurchase $70 million of its common stock.

''The results of our second quarter clearly demonstrate that we are delivering on our commitment to position the company for improved future performance,'' said Michael E. O'Neill, Chairman and Chief Executive Officer. ''We continued to improve our asset quality during the quarter and we made significant progress in implementing our strategic plan agenda. I am especially pleased that we are able to accelerate the timing of our share repurchases.''

For the first six months of 2001, net income was $60.4 million or $0.74 per share, up 30 percent from net income of $46.5 million, or $0.58 per share for the same period last year. Year-to-date return on average assets was 0.91 percent compared to 0.66 percent for the first six months of 2000. Year-to-date return on average equity was 9.0 percent versus 7.65 percent for the first half of 2000.

Earnings for the quarter included a number of significant items related to the company's implementation of its previously announced strategic plan. These items reduced net income by $4.2 million, or $0.05 per share and included gains of $24.8 million from the sale of Pacific Century Bank's Arizona branches, $7.4 million related to the sale of its ownership interest in Star Systems, Inc. and $3.7 million from the sale of the company's holdings in the Bank of Queensland. Restructuring and related expenses of $39.0 million offset these gains. Adjusted for these items and their related tax impact, core earnings per share for the quarter were $0.37 and core net income was $30.9 million, up slightly from the previous quarter.

Financial Highlights

Pacific Century Financial Corporation's net interest income for the quarter on a fully taxable equivalent basis was $116.9 million, down $8.4 million from the previous quarter primarily due to the March 31, 2001 sale of the company's credit card portfolio. Net interest income was down $17.2 million from the same quarter last year. The additional decline was largely due to the company's managed effort to reduce risk, which resulted in a reduction in the level of commercial loans.

Adjusted to reflect the reclassification of interchange fees and mortgage banking income, the company's net interest margin for the second quarter of 2001 was 3.92 percent compared to 3.97 percent in the first quarter of 2001. The 5 basis point decline was primarily due to the credit card portfolio sale. The net interest margin was 4.11 percent in the second quarter last year.

The provision for loan and lease losses was $6.4 million for the second quarter 2001, approximating net charge-offs. The prior quarter and comparable quarter last year included provisions for loan and lease losses of $52.5 million and $83.4 million, respectively, which strengthened the allowance for loan and lease losses.

Non-interest income of $98.4 million for the quarter includes $35.9 million in previously mentioned gains on sales. Non-interest income of $79.2 million for the second quarter of 2000 included a gain on settlement of pension obligations of $11.9 million. Adjusted for these special items, non-interest income decreased $4.8 million from the prior year quarter and $5.2 million from the previous quarter. This decrease in non-interest income was largely due to implementation of the company's strategic plan that called for an intentional scaleback in certain businesses. The most significant components of the reduction were in fees, exchange and other service charges. Interchange fees were down as a result of the sale of the company's credit card portfolio and foreign exchange, trading and letter of credit fees declined due to the wind down in Asia. Trust and asset management income was down from the prior periods due to lower securities values.

Non-interest expense for the quarter was $161.8 million compared with $121.2 million for the same quarter last year. Special items during second quarter 2001 included $39.0 million of restructuring and related costs. The largest element of these expenses was $20.0 million in severance and other exit costs recognized due to the decision to exit certain businesses. Also included was a $15.5 million writedown of goodwill in anticipation of the company's pending sale of Pacific Century Bank, the company's subsidiary in California. Excluding these special items, core non-interest expense increased $1.7 million from the prior year quarter and decreased $5.4 million from core non-interest expense of $128.2 million in the first quarter 2001. The largest component of the decline from the previous quarter was due to an adjustment to the insurance claims reserve of the captive insurance company. In addition, other operating expense declined due to lower processing expenses as a result of the sale of the credit card portfolio.

The higher efficiency ratio for the quarter reflects the divesting businesses as revenues declined faster than the corresponding expense levels. The company anticipates that the efficiency ratio will return to a more normal level by the end of the year.

The effective tax rate of 43 percent for the second quarter of 2001 reflects a higher level of non-tax-deductible costs associated with the divestitures.

Net income for the continuing businesses increased to $30 million, or $0.36 per share, up $6 million from the previous quarter as decreases in net interest income were offset by higher non-interest income, lower expense levels and improved credit performance. Excluding the effects of restructuring, net income for the divested businesses was $1 million, or $0.01 per share largely due to declining revenues as the businesses were scaled back and higher credit losses that more than offset reductions in non-interest expense.

Asset Quality Improvement

Asset quality improved for the third consecutive quarter. Non-performing assets, exclusive of loans past due 90+ days, decreased to $118.9 million, down slightly from the previous quarter and down $91.7 million, or 43.5 percent from the same period last year. At June 30, 2001, the ratio of non-performing assets to loans was 1.55 percent compared to 1.41 percent at March 31, 2001 and 2.19 percent at June 30, 2000. The higher ratio in the second quarter of 2001 compared to the first quarter is due to an $0.8 billion decrease in loans, including approximately $220 million for the sale of the Arizona branches. Other reductions include $239 million in other commercial loans and $193 million in foreign loans.

Total exposure, including undrawn commitments, decreased $269 million to $439 million in Asia while syndicated loans declined $504 million to $2.2 billion. At June 30, 2001, outstanding Asia and syndicated loans were $346 million and $682 million, respectively. The company continued to reduce the level of internally criticized and classified assets during the quarter.

Non-accrual loans of $67.3 million at the end of the second quarter declined $28.2 million or 29.5 percent from the previous quarter and $138.4 million or 67.3 percent from the same period last year. Non-accrual loans as a percentage of total loans were 0.88 percent, a decrease from 1.13 percent in the previous quarter, and 2.14 percent in the same period last year. The decline from the previous quarter includes the transfer of two Hawaii loans to foreclosed real estate (OREO). This exposure will be reduced through the sale of the real estate assets.

Net charge-offs for the second quarter of 2001 were $6.9 million or 0.34 percent of total loans (annualized). Charge-offs of $20.3 were partially offset by recoveries of $13.4 million. The most significant credit loss in the quarter was a $5.0 million charge-off in Pacific Century Bank. The allowance for loan and lease losses at June 30, 2001 was $199.8 million, unchanged from the prior quarter and down significantly from $246.6 million at June 30, 2000.

The ratio of the allowance for loan and lease losses to non-accrual loans was 297 percent at June 30, 2001, up from 209 percent at March 31, 2001 and up from 120 percent at June 30, 2000. The ratio of the allowance for loan and lease losses to total loans was 2.62 percent at the end of second quarter 2001 versus 2.37 percent at the end of first quarter 2001 and 2.56 percent at the end of the same quarter last year. The company expects to reevaluate the level of its allowance for loan and lease losses as it completes its divestitures and other risk reduction strategies.

Other Financial Highlights

Pacific Century Financial Corporation achieved significant progress during the second quarter 2001 in the execution of its strategic plan to return the focus of the company back to its core markets and maximize shareholder value over time. On June 5, 2001 the company announced the sale of Pacific Century Bank to U.S. Bancorp. The sale, which is subject to regulatory approvals, is expected to be completed in early September 2001, slightly ahead of the original schedule. The divestiture of the South Pacific locations is proceeding according to plan and information about those businesses has been distributed to interested potential buyers. The company continues to wind down its businesses in Asia. A representative office in Tokyo will be maintained.

Total assets were $12.8 billion at the end of June 30, 2001, which is currently on track with targeted reductions outlined in the company's strategic plan. The most significant reductions were in commercial loans, installment loans and commercial real estate loans. Asset reductions are on schedule with the sole exception of mortgage loan sales, now anticipated to commence in the third quarter of 2001.

Deposits at the end of the second quarter were $8.1 billion, down 8 percent from $8.8 billion at the end of the first quarter 2001 and down 11 percent from the second quarter of 2000. Compared with the first quarter 2001, domestic deposits declined primarily due to the sale of the Arizona branches in April, which reduced total deposits $0.4 million and a continued decline in foreign deposits resulting from the decision to exit certain foreign countries.

In addition to approval of the new stock repurchase program, the company's Board of Directors declared a quarterly cash dividend of $0.18 per share on the company's outstanding shares. The dividend will be payable on September 17, 2001 to shareholders of record at the close of business on August 24, 2001.

2001 Financial Outlook

Within a range of 2 percent, the company is maintaining its earnings guidance of $119 million or $1.51 per share for the full year. Net income for the continuing businesses is expected to be $102 million or $1.29 per share. It is apparent that the performance of the divesting businesses will be lower than originally projected. The aggregate cost of restructuring cannot be further refined until the sales price of the South Pacific banks is determined. Earnings per share projections were derived using certain assumptions of share price and repurchase timing. The current share price is higher than the price assumed in our projections. The company will provide guidance on the expected final outcome of restructuring when more information is available.

Hawaii's economists continue to forecast moderate economic expansion in 2001 with Hawaii real GSP growth estimates between 2.2 and 3.0 percent. The key drivers, according to the state's Council on Revenues are expected to be construction growth and rising real estate activity supported by low interest rates. Similar to the U.S. economy, Hawaii's year-to-date economic performance is slightly weaker than expected.

The company will review second quarter 2001 earnings today at 2:00 p.m. ET. The presentation will be accessible via teleconference and the investor relations link of Pacific Century Financial Corporation's web site, www.boh.com. The conference call number is 800/553-0327 in the U.S. or 612/332-0932 for international callers. A replay will be available for one week beginning at 6:00 p.m. ET on Monday, July 23, 2001 by calling 800/475-6701 (U.S.) or 320/365-3844 (International) and entering the number 593861 when prompted. A replay of the presentation will be available on the company's web site.

This news release contains forward-looking statements. All statements in this news release that address events or developments that we anticipate may occur in the future are forward-looking statements. We believe the assumptions underlying our forward-looking statements are reasonable. However, any of the assumptions could prove to be inaccurate and actual results may differ materially from those projected for a variety of reasons including, but not limited to: we may not complete implementation of the strategic plan within expected financial and time estimates; our credit markets may deteriorate; our credit quality initiatives may fall short of our goals; we may not achieve the expense reductions we expect; we may not be able to maintain our net interest margin; we may not be able to implement our proposed equity repurchases in the amount or at the times planned; implementing the strategic plan may cause unanticipated organizational disruptions; customer acceptance of our business as restructured may be less than expected; there may be economic or political volatility in the markets we serve; and there may be changes in business and economic conditions, competition, fiscal and monetary policies or legislation. Except where specified, we do not undertake any obligation to update any forward-looking statements to reflect later events or circumstances.

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


Pacific Century Financial Corporation and subsidiaries
Highlights  (Unaudited)                                      Table 1
----------------------------------------------------------------------
(dollars in thousands except per share amounts)

Earnings Highlights and Performance Ratios          2001        2000
----------------------------------------------------------------------
Three Months Ended June 30
   Net Income                                     $26,739     $ 6,707
   Basic Earnings Per Share                          0.33        0.08
   Diluted Earnings Per Share                        0.32        0.08
   Cash Dividends                                  14,426      14,305

   Return on Average Assets                          0.83%       0.19%
   Return on Average Equity                          7.69%       2.19%
   Net Interest Margin                               3.92% *     4.11%
   Core Efficiency Ratio (a)                        68.74%      60.57%

Six Months Ended June 30
   Net Income                                     $60,416     $46,472
   Basic Earnings Per Share                          0.75        0.58
   Diluted Earnings Per Share                        0.74        0.58
   Cash Dividends                                  28,790      27,845

   Return on Average Assets                          0.91%       0.66%
   Return on Average Equity                          9.00%       7.65%
   Net Interest Margin                               3.94%       4.12%
   Core Efficiency Ratio (a)                        66.98%      61.26%


Summary of Results Excluding the Effect of Intangibles (b)
----------------------------------------------------------------------
Three Months Ended June 30
   Net Income                                     $28,676     $10,526
   Basic Earnings per Share                         $0.36       $0.13
   Diluted Earnings per Share                       $0.35       $0.13
   Return on Average Assets                          0.90%       0.30%
   Return on Average Equity                          9.41%       4.10%
   Core Efficiency Ratio (a)                        66.71%      58.43%

Six Months Ended June 30
   Net Income                                     $67,383     $53,973
   Basic Earnings per Share                         $0.84       $0.68
   Diluted Earnings per Share                       $0.82       $0.67
   Return on Average Assets                          1.03%       0.77%
   Return on Average Equity                         11.59%      10.66%
   Core Efficiency Ratio (a)                        64.96%      59.18%

(a) Core earnings excludes restructuring and non-recurring
    transactions.

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

                                           June 30          June 30
Statement of Condition Highlights           2001              2000
----------------------------------------------------------------------
Total Assets                            $12,755,511       $14,294,625
Net Loans                                 7,418,607         9,368,718
Total Deposits                            8,108,468         9,109,146
Total Shareholders' Equity                1,395,731         1,209,399

Book Value Per Common Share                  $17.24            $15.23
Allowance / Loans Outstanding                  2.62%             2.56%
Average Equity / Average Assets               10.08%             8.59%
Employee (FTE)                                4,197             4,275
Branches                                        156               174

Common Stock Price Range Quarter Ended
         Closing                             $25.79            $14.63 
         High                                $25.80            $23.19
         Low                                 $19.38            $14.63 *

----------------------------------------------------------------------
                                               * Revision made 7/27/01

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



Pacific Century Financial Corporation and subsidiaries
Consolidated Statements of Income (Unaudited)               Table 2
----------------------------------------------------------------------
(dollars in thousands except per share amounts)

                         Three Months Ended        Six Months Ended
                        June 30      June 30      June 30    June 30
                         2001         2000         2001        2000
Interest Income
 Interest on Loans     $154,641     $188,233     $336,943    $371,656
 Income on Lease
  Financing               9,174        9,747       16,031      17,726
 Interest and Dividends
  on Investment
  Securities
   Taxable               10,902       13,321       22,538      27,557
   Non-taxable              144          243          284         522
 Income on Investment
  Securities Available
  for Sale               36,146       41,161       75,447      82,194
 Deposits                 4,903        3,834       10,117       7,598
 Security Resale
  Agreements                101            6          139          16
 Funds Sold               1,252          485        2,311         958
----------------------------------------------------------------------
   Total Interest
    Income              217,263      257,030      463,810     508,227
Interest Expense
 Deposits                60,061       71,064      132,080     139,278
 Security Repurchase
  Agreements             20,843       26,021       45,473      48,974
 Funds Purchased          2,333        7,834        8,456      16,361
 Short-Term Borrowings    2,764        6,514        5,994      11,046
 Long-Term Debt          14,459       13,319       29,773      26,007
----------------------------------------------------------------------
   Total Interest
    Expense             100,460      124,752      221,776     241,666
----------------------------------------------------------------------
Net Interest Income     116,803      132,278      242,034     266,561
Provision for Loan
 Losses                   6,413       83,407       58,879      96,929
----------------------------------------------------------------------
Net Interest Income
 After Provision for
 Loan Losses            110,390       48,871      183,155     169,632
Non-Interest Income
 Trust and Asset
  Management             15,247       16,317       31,042      33,204
 Mortgage Banking         4,606        2,799        9,683       4,878
 Service Charges on
  Deposit Accounts        9,878       10,180       19,818      19,737
 Fees, Exchange, and
  Other Service Charges  20,000       25,393       43,593      49,485
 Gain on Sale of Card
  Portfolio and
  Branches               24,794           --      100,208          --
 Gain on Settlement of
  Pension Obligation         --       11,900           --      11,900
 Investment Securities
  Gains (Losses)         11,681         (515)      31,884        (233)
 Other Operating
  Income                 12,170       13,097       22,883      28,672
----------------------------------------------------------------------
   Total Non-Interest
    Income               98,376       79,171      259,111     147,643
Non-Interest Expense
 Salaries                47,722       44,460       95,605      92,007
 Pensions and Other
  Employee Benefits      12,543       10,788       26,896      25,418
 Net Occupancy Expense   12,488       12,480       24,612      24,296
 Net Equipment Expense   13,729       12,066       27,108      24,133
 Goodwill Amortization    3,633        4,278        7,583       8,340
 Restructuring and
  Other Related Costs    37,751           --       82,189          --
 Minority Interest           84          107          163         176
 Other Operating
  Expense                33,885       36,998       70,319      72,209
----------------------------------------------------------------------
   Total Non-Interest
    Expense             161,835      121,177      334,475     246,579
----------------------------------------------------------------------
Income Before Income
 Taxes                   46,931        6,865      107,791      70,696
Provision for
 Income Taxes            20,192          158       47,375      24,224
----------------------------------------------------------------------
Net Income              $26,739      $ 6,707      $60,416     $46,472
======================================================================
Basic Earnings
 Per Share                $0.33        $0.08        $0.75       $0.58
Diluted Earnings
 Per Share                $0.32        $0.08        $0.74       $0.58
Dividends Declared
 Per Share                $0.36        $0.36        $0.36       $0.35
Basic Weighted
 Average Shares      80,516,216   79,425,245   80,120,449  79,623,305
Diluted Weighted
 Average Shares      82,975,267   80,002,989   82,030,085  79,975,904
======================================================================



Pacific Century Financial Corporation and subsidiaries
Consolidated Statements of Condition (Unaudited)            Table 3
----------------------------------------------------------------------
(dollars in thousands)
                             June 30       December 31       June 30
                              2001            2000             2000
----------------------------------------------------------------------
Assets
Interest-Bearing Deposits   $458,696        $188,649         $199,020
Investment Securities
 - Held to Maturity
(Market Value of $628,393,
 $676,621 and $721,617,
 respectively)               616,412         670,038          730,445
Investment Securities
 - Available for Sale      2,202,718       2,507,076        2,493,066
Securities Purchased Under
 Agreements to Resell          7,688           3,969               --
Funds Sold                   318,182         134,644           50,646
Loans Held for Sale          571,395         179,229          128,720
Loans                      7,874,205       9,489,061        9,942,797
 Unearned Income            (255,798)       (253,903)        (327,520)
 Allowance for
  Loan Losses               (199,800)       (246,247)        (246,559)
----------------------------------------------------------------------
   Net Loans               7,418,607       8,988,911        9,368,718
----------------------------------------------------------------------
   Total Earning Assets   11,593,698      12,672,516       12,970,615
Cash and Non-Interest
 Bearing Deposits            391,552         523,969          473,950
Premises and Equipment       242,040         254,621          259,037
Customers' Acceptance
 Liability                     4,184          14,690            9,406
Accrued Interest
 Receivable                   61,702          68,585           75,883
Other Real Estate             40,077           4,526            4,915
Intangibles, including
 Goodwill                    157,515         192,264          198,363
Other Assets                 264,743         282,645          302,456
----------------------------------------------------------------------
   Total Assets          $12,755,511     $14,013,816      $14,294,625
======================================================================
Liabilities
Domestic Deposits
 Demand
  - Non-Interest
    Bearing               $1,591,824      $1,707,724       $1,696,106
  - Interest Bearing       1,914,474       2,008,730        2,091,074
  Savings                    758,262         665,239          684,572
  Time                     2,602,035       2,836,083        2,781,868
Foreign Deposits
 Demand
  - Non-Interest
    Bearing                  319,165         385,366          378,497
 Time Due to Banks           265,768         535,126          442,678
 Other Savings and Time      656,940         942,313        1,034,351
----------------------------------------------------------------------
   Total Deposits          8,108,468       9,080,581        9,109,146
Securities Sold Under
 Agreements to Repurchase  1,632,774       1,655,173        1,573,980
Funds Purchased              176,768         413,241          663,234
Short-Term Borrowings        242,781         211,481          530,231
Bank's Acceptances
 Outstanding                   4,184          14,690            9,406
Accrued Retirement Expense    35,946          37,868           37,214
Accrued Interest Payable      59,559          72,460           64,579
Accrued Taxes Payable        170,815         130,766           83,343
Minority Interest              4,014           4,536            4,350
Other Liabilities             93,619          94,512          107,569
Long-Term Debt               830,852         997,152          902,174
----------------------------------------------------------------------
   Total Liabilities      11,359,780      12,712,460       13,085,226

Shareholders' Equity
 Common Stock
 ($.01 par value),
 authorized 500,000,000
 shares; issued /
 outstanding: June 2001
 - 80,368,629 / 80,948,825;
 December 2000
 - 80,558,811 / 79,612,178;
 June 2000
 - 80,555,424 / 79,399,919       806             806              806
Capital Surplus              367,390         346,045          346,018
Accumulated Other
 Comprehensive Income         25,886         (25,079)         (75,462)
Retained Earnings          1,028,036         996,791          959,041
Deferred Stock Grants        (17,891)             --               --
Treasury Stock, at Cost
 - (Shares:
 June 2001 - 419,804;
 December 2000 - 946,633;
 and June 2000 - 1,155,505)   (8,496)        (17,207)         (21,004)
----------------------------------------------------------------------
    Total Shareholders'
     Equity                1,395,731       1,301,356        1,209,399
----------------------------------------------------------------------
    Total Liabilities
     and Shareholders'
     Equity              $12,755,511     $14,013,816      $14,294,625
======================================================================



Pacific Century Financial Corporation and subsidiaries
Consolidated Statements of Shareholders' Equity (Unaudited)  Table 4
----------------------------------------------------------------------
(in thousands of dollars)                                Accumulated
                                                         Other
                                     Common     Capital  Comprehensive
                           Total     Stock      Surplus  Income
----------------------------------------------------------------------
Balance at
 December 31, 2000     $ 1,301,356   $ 806    $ 346,045  $ (25,079)
Comprehensive Income
 Net Income                 60,416      --           --         --
 Other Comprehensive
  Income, Net of Tax
   Investment
   Securities, Net of
   Reclassification
   Adjustment               22,775      --           --      22,775
  Foreign Currency
   Translation
   Adjustment               27,496      --           --      27,496
  Pension Liability
   Adjustments                (159)     --           --        (159)

 Total Comprehensive
  Income

Common Stock Issued
 32,942 Profit
  Sharing Plan                 725      --          180          --
 416,413 Stock
  Option Plan                7,073      --          643          --
 64,791 Dividend
  Reinvestment Plan          1,419      --          326          --
 3,672 Directors'
  Restricted Shares
  and Deferred
  Compensation Plan            343      --           81          --
 741,000 Employees'
  Restricted Shares            925      --       18,816          --
 65,146 Hawaii
  Insurance Network          1,299      --        1,299          --
Stock Compensation             853      --           --         853
Cash Dividends Paid        (28,790)     --           --          --
----------------------------------------------------------------------
Balance at
 June 30, 2001         $ 1,395,731   $ 806    $ 367,390    $ 25,886
======================================================================
Balance at
 December 31, 1999     $ 1,212,330   $ 806    $ 345,851    $(66,106)
Comprehensive Income
 Net Income                 46,472      --           --          --
 Other Comprehensive
  Income, Net of Tax
   Investment
   Securities, Net of
   Reclassification
   Adjustment              (10,696)     --           --     (10,696)
  Foreign Currency
   Translation
   Adjustment                1,340      --           --       1,340
  Pension Liability
   Adjustments                  --      --           --          --
 Total Comprehensive
  Income

Common Stock Issued
 39,382 Profit
  Sharing Plan                 723      --           18          --
 140,260 Stock
  Option Plan                2,018      --            3          --
 115,574 Dividend
  Reinvestment Plan          1,899      --           52          --
 4,696 Directors'
  Restricted Shares
  and Deferred
  Compensation Plan             94      --           94          --
Treasury Stock
 Purchased                 (16,936)     --           --          --
Cash Dividends Paid        (27,845)     --           --          --
----------------------------------------------------------------------
Balance at
 June 30, 2000         $ 1,209,399   $ 806    $ 346,018   $ (75,462)
======================================================================


Pacific Century Financial Corporation and subsidiaries
Consolidated Statements of Shareholders' Equity (Unaudited)  Table 4
                                                             (cont)
----------------------------------------------------------------------
                      Retained     Deferred   Treasury   Comprehensive
                      Earnings     Stock      Stock      Income
                                   Grants
----------------------------------------------------------------------
Balance at
 December 31, 2000    $ 996,791    $   --     $ (17,207)
Comprehensive Income
 Net Income              60,416        --            --     $60,416
 Other Comprehensive
  Income, Net of Tax
   Investment
   Securities, Net of
   Reclassification
   Adjustment                --        --            --      22,775
  Foreign Currency
   Translation
   Adjustment                --        --            --      27,496
  Pension Liability
   Adjustments               --        --            --        (159)
                                                         -----------
 Total Comprehensive
  Income                                                   $110,528
                                                         ===========
Common Stock Issued
 32,942 Profit
  Sharing Plan               --        --           545
 416,413 Stock
  Option Plan              (381)       --         6,811
 64,791 Dividend
  Reinvestment Plan          --        --         1,093
 3,672 Directors'
  Restricted Shares
  and Deferred
  Compensation Plan          --        --           262
 741,000 Employees'
  Restricted Shares          --   (17,891)           --
 65,146 Hawaii
  Insurance Network          --        --            --
Stock Compensation           --        --            --
Cash Dividends Paid     (28,790)       --            --
----------------------------------------------------------------------
Balance at
 June 30, 2001       $1,028,036 $ (17,891)     $ (8,496)
======================================================================
Balance at
 December 31, 1999    $ 942,177 $      --      $(10,398)
Comprehensive Income
 Net Income              46,472        --            --     $46,472
 Other Comprehensive
  Income, Net of Tax
   Investment
   Securities, Net of
   Reclassification
   Adjustment                --        --            --     (10,696)
  Foreign Currency
   Translation
   Adjustment                --        --            --       1,340
  Pension Liability
   Adjustments               --        --            --          --
                                                         -----------
 Total Comprehensive
  Income                                                    $37,116
                                                         ===========
Common Stock Issued
 39,382 Profit
  Sharing Plan             (128)       --           833
 140,260 Stock
  Option Plan            (1,019)       --         3,034
 115,574 Dividend
  Reinvestment Plan        (616)       --         2,463
 4,696 Directors'
  Restricted Shares
  and Deferred
  Compensation Plan          --        --            --
Treasury Stock
 Purchased                   --        --       (16,936)
Cash Dividends Paid     (27,845)       --            --
----------------------------------------------------------------------
Balance at
 June 30, 2000        $ 959,041     $  --     $ (21,004)
======================================================================


Pacific Century Financial Corporation and subsidiaries
 Consolidated Average Balances and
 Interest Rates Taxable Equivalent (Unaudited)                Table 5
----------------------------------------------------------------------
(dollars in millions)
                                              Three Months Ended
                                                 June 30, 2001
                                           Average  Income/   Yield/
                                           Balance  Expense   Rate
----------------------------------------------------------------------
Earning Assets
 Interest Bearing Deposits                 $ 414.3  $  4.9    4.75%
 Funds Sold                                  120.3     1.4    4.51
 Investment Portfolio
  - Held-To-Maturity                         642.1    11.1    6.93
  - Available for Sale                     2,318.3    36.2    6.25
 Loans Held For Sale                         430.9     7.4    6.88
  Net Loans
  - Domestic                               6,910.9   137.1    7.96
  - Foreign                                1,136.9    19.3    6.80
                                        -----------------------------
  Total Loans                              8,047.8   156.4    7.79
                                        -----------------------------
   Total Earning Assets                   11,973.7   217.4    7.28
 Cash and Due From Banks                     367.6
 Other Assets                                655.1
                                        -----------
   Total Assets                         $ 12,996.4
                                        ===========
Interest Bearing Liabilities
 Domestic Deposits
  - Demand                              $  1,905.0     9.3    1.95
  - Savings                                  698.8     3.7    2.14
  - Time                                   2,654.1    37.3    5.64
                                        -----------------------------
  Total Domestic Deposits                  5,257.9    50.3    3.83

 Foreign Deposits
  - Time Due to Banks                        317.4     3.5    4.45
  - Other Time and Savings                   709.3     6.3    3.55
                                        -----------------------------
  Total Foreign Deposits                   1,026.7     9.8    3.83
                                        -----------------------------
  Total Interest Bearing Deposits          6,284.6    60.1    3.83
 Short-Term Borrowings                     2,108.2    25.9    4.94
 Long-Term Debt                              864.5    14.5    6.71
                                        -----------------------------
  Total Interest Bearing Liabilities       9,257.3   100.5    4.35
                                        -----------------------------
  Net Interest Income                                116.9
   Interest Rate Spread                                       2.93%
   Net Interest Margin                                        3.92%
Demand Deposits - Domestic                 1,567.8
                - Foreign                    348.4
                                        -----------
    Total Demand Deposits                  1,916.2
Other Liabilities                            428.5
Shareholders' Equity                       1,394.4
                                        -----------
    Total Liabilities and
     Shareholders' Equity               $ 12,996.4
                                        ===========

Provision for Loan Losses                              6.4
Net Overhead                                          63.5
                                                    -------
Income Before Income Taxes                            47.0
Provision for Income Taxes                            20.2
Tax-Equivalent Adjustment                              0.1
                                                    -------
Net Income                                          $ 26.7



Pacific Century Financial Corporation and subsidiaries
Consolidated Average Balances and
 Interest Rates Taxable Equivalent (Unaudited)                Table 5
                                                              (cont)
----------------------------------------------------------------------
(dollars in millions)
                                              Three Months Ended
                                                 March 31, 2001
                                           Average  Income/   Yield/
                                           Balance  Expense    Rate

Earning Assets
 Interest Bearing Deposits                 $ 332.3  $ 5.2     6.36%
 Funds Sold                                   80.5    1.1     5.53
 Investment Portfolio
  - Held-To-Maturity                         656.3   11.9     7.35
  - Available for Sale                     2,479.9   39.3     6.43
 Loans Held For Sale                         201.7    3.6     7.24
  Net Loans
  - Domestic                               7,784.0  163.7     8.53
  - Foreign                                1,277.8   21.8     6.93
                                        -----------------------------
  Total Loans                              9,061.8  185.5     8.21
                                        -----------------------------
   Total Earning Assets                   12,812.5  246.6     7.81
 Cash and Due From Banks                     438.2
 Other Assets                                595.1
                                        -----------
   Total Assets                         $ 13,845.8
                                        ===========

Interest Bearing Liabilities
 Domestic Deposits
  - Demand                              $ 2,008.2    11.7     2.36
  - Savings                                 665.7     3.4     2.04
  - Time                                  2,902.7    43.1     6.03
                                        -----------------------------
  Total Domestic Deposits                 5,576.6    58.2     4.23
                                        -----------------------------
 Foreign Deposits
  - Time Due to Banks                       489.4     6.6     5.51
  - Other Time and Savings                  801.0     7.2     3.65
                                        -----------------------------
  Total Foreign Deposits                  1,290.4    13.8     4.35
                                        -----------------------------
  Total Interest Bearing Deposits         6,867.0    72.0     4.25
 Short-Term Borrowings                    2,364.8    34.0     5.83
 Long-Term Debt                             916.0    15.3     6.78
                                        -----------------------------
  Total Interest Bearing Liabilities     10,147.8   121.3     4.85
                                        -----------------------------
  Net Interest Income                               125.3
   Interest Rate Spread                                       2.96%
   Net Interest Margin                                        3.97%
Demand Deposits - Domestic                1,636.8
                - Foreign                   377.5
                                        -----------
    Total Demand Deposits                 2,014.3
Other Liabilities                           372.4
Shareholders' Equity                      1,311.3
                                        -----------
    Total Liabilities and
     Shareholders' Equity               $ 13,845.8
                                        ===========

Provision for Loan Losses                            52.4
Net Overhead                                         11.9
                                                   -------
Income Before Income Taxes                           61.0
Provision for Income Taxes                           27.2
Tax-Equivalent Adjustment                             0.1
                                                   -------
Net Income                                         $ 33.7
                                                   =======


Pacific Century Financial Corporation and subsidiaries
Consolidated Average Balances and
 Interest Rates Taxable Equivalent (Unaudited)                Table 5
                                                              (cont)
----------------------------------------------------------------------
(dollars in millions)

                                              Three Months Ended
                                                 June 30, 2000
                                           Average  Income/   Yield/
                                           Balance  Expense   Rate
Earning Assets
 Interest Bearing Deposits                 $ 220.0  $ 3.6     6.49%
 Funds Sold                                   32.2    0.5     6.13
 Investment Portfolio
  - Held-To-Maturity                         731.6   13.7     7.53
  - Available for Sale                     2,514.8   41.2     6.58
 Loans Held For Sale                         123.7    2.3     7.48
  Net Loans
  - Domestic                               7,980.7  172.3     8.68
  - Foreign                                1,532.5   25.1     6.58
                                        -----------------------------
  Total Loans                              9,513.1  197.4     8.34
                                        -----------------------------
   Total Earning Assets                   13,135.5  258.6     7.92
 Cash and Due From Banks                     444.0
 Other Assets                                638.8
                                        -----------
   Total Assets                         $ 14,218.3
                                        ===========
Interest Bearing Liabilities
 Domestic Deposits
  - Demand                              $ 2,097.8    12.3     2.36
  - Savings                                 691.5     3.5     2.03
  - Time                                  2,744.0    36.4     5.33
                                        -----------------------------
  Total Domestic Deposits                 5,533.3    52.1     3.79

 Foreign Deposits
  - Time Due to Banks                       422.0     6.2     5.91
  - Other Time and Savings                1,133.8    12.4     4.40
                                        -----------------------------
  Total Foreign Deposits                  1,555.8    18.6     4.81
                                        -----------------------------
  Total Interest Bearing Deposits         7,089.1    70.7     4.01
 Short-Term Borrowings                    2,728.1    40.4     5.95
 Long-Term Debt                             807.2    13.3     6.64
                                        -----------------------------
  Total Interest Bearing Liabilities     10,624.3   124.4     4.71
                                        -----------------------------
  Net Interest Income                               134.1
   Interest Rate Spread                                       3.21%
   Net Interest Margin                                        4.11%
Demand Deposits - Domestic                1,666.5
                - Foreign                   366.0
                                        ----------
    Total Demand Deposits                 2,032.5
Other Liabilities                           331.5
Shareholders' Equity                      1,230.0
                                        ----------
    Total Liabilities and
     Shareholders' Equity                14,218.3
                                        ==========

Provision for Loan Losses                            83.3
Net Overhead                                         43.0
                                                   -------
Income Before Income Taxes                            7.8
Provision for Income Taxes                            0.1
Tax-Equivalent Adjustment                             1.0
                                                   -------
Net Income                                          $ 6.7
                                                   =======


Pacific Century Financial Corporation and subsidiaries
Loan Portfolio Balances (Unaudited)                           Table 6
----------------------------------------------------------------------
(in millions of dollars)
                          June 30    March 31   December 31   June 30
                             2001        2001          2000      2000
----------------------------------------------------------------------
Domestic Loans
 Commercial and
  Industrial             $1,786.8    $2,094.7      $2,443.3  $2,683.8
 Real Estate
  Construction
   -- Commercial            213.6       284.0         282.4     294.3
   -- Residential            32.4        28.9          25.0      21.9
  Mortgage
   -- Commercial            866.3     1,023.8       1,125.5   1,241.2
   -- Residential         2,785.6     2,866.7       2,855.9   2,678.7
 Installment                486.4       496.4         729.9     750.0
 Lease Financing            738.0       731.2         725.5     782.7
----------------------------------------------------------------------
    Total Domestic        6,909.1     7,525.7       8,187.5   8,452.6
----------------------------------------------------------------------
Foreign Loans               965.1     1,157.7       1,301.6   1,490.2
----------------------------------------------------------------------
    Unearned Income        (255.8)     (258.4)       (253.9)   (327.5)

        Total Loans      $7,618.4    $8,425.0      $9,235.2  $9,615.3
======================================================================



Pacific Century Financial Corporation and subsidiaries
Consolidated Non-Performing Assets and Accruing
 Loans Past Due 90 Days or More  (Unaudited)                 Table 7
----------------------------------------------------------------------
(dollars in millions)
                                   June 30    March 31      Dec 31
                                     2001        2001        2000
----------------------------------------------------------------------
Non-Accrual Loans
  Commercial and Industrial          $11.8       $23.8       $55.4
  Real Estate
    Construction                       5.8         6.3         6.4
    Commercial                        14.4        29.7        60.1
    Residential                       16.2        18.5        22.7
  Installment                          0.2         0.1          --
  Leases                               0.4         0.2         0.4
                                   ---------------------------------
     Total Domestic                   48.8        78.6       145.0
  Foreign                             18.5        16.9        33.5
                                   ---------------------------------
      Subtotal                        67.3        95.5       178.5

   Loans Held for Sale                11.5        12.8          --

Foreclosed Real Estate
  Domestic                            39.8        10.9         4.2
  Foreign                              0.3         0.3         0.3
                                   ---------------------------------
      Subtotal                        40.1        11.2         4.5
                                   ---------------------------------
   Total Non-Performing Assets       118.9       119.5       183.0
                                   ---------------------------------
Accruing Loans Past
 Due 90 Days or More
  Commercial and Industrial            0.2         3.9         5.0
  Real Estate
    Construction                        --          --          --
    Commercial                          --         0.9         1.3
    Residential                        3.7         3.3         3.3
  Installment                          1.8         2.7         5.6
  Leases                               0.1         0.1         0.4
                                   ---------------------------------
     Total Domestic                    5.8        10.9        15.6
  Foreign                              0.4         0.2         3.2
                                   ---------------------------------
      Subtotal                         6.2        11.1        18.8
                                   ---------------------------------
    Total                           $125.1      $130.6      $201.8
                                   =================================

    Total Loans                     $7,618      $8,425      $9,235

----------------------------------------------------------------------
Ratio of Non-Accrual
 Loans to Total Loans                 0.88%       1.13%       1.93%
----------------------------------------------------------------------
Ratio of Non-Performing Assets
 to Total Loans, Foreclosed
 Real Estate and Non-Performing
 Loans Held for Sale                  1.55%       1.41%       1.98%
----------------------------------------------------------------------
Ratio of Non-Performing Assets
 and Accruing Loans Past Due
 90 Days or More to Total Loans       1.64%       1.55%       2.19%
----------------------------------------------------------------------


Pacific Century Financial Corporation and subsidiaries
Consolidated Non-Performing Assets and Accruing
 Loans Past Due 90 Days or More  (Unaudited)                   Table 7
                                                               (cont)
----------------------------------------------------------------------
(dollars in millions)
                                         Sept 30           June 30
                                          2000              2000
----------------------------------------------------------------------
Non-Accrual Loans
  Commercial and Industrial                $49.0             $52.7
  Real Estate
    Construction                             8.1               8.0
    Commercial                              86.8              62.2
    Residential                             22.0              23.2
  Installment                                0.1               0.1
  Leases                                     0.2               0.3
                                         ---------------------------
     Total Domestic                        166.2             146.5
  Foreign                                   48.3              59.2
                                         ---------------------------
      Subtotal                             214.5             205.7

   Loans Held for Sale                        --                --

Foreclosed Real Estate
  Domestic                                   4.9               4.6
  Foreign                                    0.2               0.3
                                         ---------------------------
      Subtotal                               5.1               4.9
                                         ---------------------------
   Total Non-Performing Assets             219.6             210.6
                                         ---------------------------

Accruing Loans Past
 Due 90 Days or More
  Commercial and Industrial                  2.2               4.7
  Real Estate
    Construction                             0.1                --
    Commercial                               4.9               2.0
    Residential                              7.2               3.5
  Installment                                4.6               4.0
  Leases                                     0.1               1.5
                                         ---------------------------
     Total Domestic                         19.1              15.7
  Foreign                                    1.5               1.3
                                         ---------------------------
      Subtotal                              20.6              17.0
                                         ---------------------------
    Total                                 $240.2            $227.6
                                         ===========================

    Total Loans                           $9,339            $9,614

----------------------------------------------------------------------
Ratio of Non-Accrual
 Loans to Total Loans                       2.30%             2.14%
----------------------------------------------------------------------
Ratio of Non-Performing Assets
 to Total Loans, Foreclosed
 Real Estate and Non-Performing
 Loans Held for Sale                        2.35%             2.19%
----------------------------------------------------------------------
Ratio of Non-Performing Assets
 and Accruing Loans Past Due
 90 Days or More to Total Loans             2.57%             2.37%
----------------------------------------------------------------------



Pacific Century Financial Corporation and subsidiaries
Consolidated Allowance for Loan Losses  (Unaudited)            Table 8
----------------------------------------------------------------------
(dollars in millions)
                                 Second       First      Second
                                Quarter     Quarter     Quarter
                                  2001        2001        2000

Average Loans Outstanding      $8,047.8    $9,061.8    $9,513.1
----------------------------------------------------------------------
Balance of Allowance
 for Loan Losses at
 Beginning of Period             $199.8      $246.2      $195.4
Loans Charged-Off
  Commercial and Industrial         8.9        75.5        12.4
  Real Estate
    Construction                     --          --         0.5
    Commercial                      1.6        11.9         7.7
    Residential                     1.7         2.5         1.4
  Installment                       4.2         5.4         5.2
  Leases                             --         0.1         0.2
----------------------------------------------------------------------
     Total Domestic                16.4        95.4        27.4
   Foreign                          3.9        10.0         9.1
----------------------------------------------------------------------
Total Charged-Off                  20.3       105.4        36.5
Recoveries on Loans
 Previously Charged-Off
   Commercial and Industrial        4.3         2.7         1.2
   Real Estate
     Construction                    --          --          --
     Commercial                     0.8         0.3         0.1
     Residential                    0.3         0.2         0.2
   Installment                      1.6         1.8         1.9
   Leases                           0.1         0.1          --
----------------------------------------------------------------------
     Total Domestic                 7.1         5.1         3.4
   Foreign                          6.3         2.6         0.2
----------------------------------------------------------------------
Total Recoveries                   13.4         7.7         3.6
----------------------------------------------------------------------
Net Charge-Offs                    (6.9)      (97.7)      (32.9)
Provision for Loan Losses           6.4        52.5        83.4
Other Net
 Additions (Reductions)(1)          0.5        (1.2)        0.7
----------------------------------------------------------------------
Balance at End of Period         $199.8      $199.8      $246.6
======================================================================
Ratio of Net Charge-Offs
 to Average Loans
 Outstanding (annualized)          0.34%       4.31%       1.38%
----------------------------------------------------------------------
Ratio of Allowance
 to Loans Outstanding              2.62%       2.37%       2.56%
----------------------------------------------------------------------
(1) Includes balance transfers, reserves acquired, and foreign
    currency translation adjustments.



Pacific Century Financial Corporation and subsidiaries
Consolidated Allowance for Loan Losses  (Unaudited)            Table 8
                                                               (cont)
----------------------------------------------------------------------
(dollars in millions)
                                      First Six       First Six
                                       Months          Months
                                        2001            2000

Average Loans Outstanding              $8,552.0        $9,439.6
----------------------------------------------------------------------
Balance of Allowance
 for Loan Losses at
 Beginning of Period                     $246.2          $194.2
Loans Charged-Off
  Commercial and Industrial                84.4             9.7
  Real Estate
    Construction                             --             0.5
    Commercial                             13.5            11.5
    Residential                             4.2             3.7
  Installment                               9.6             9.9
  Leases                                    0.1             0.2
----------------------------------------------------------------------
     Total Domestic                       111.8            35.5
   Foreign                                 13.9            17.1
----------------------------------------------------------------------
Total Charged-Off                         125.7            52.6
Recoveries on Loans
 Previously Charged-Off
   Commercial and Industrial                7.0             2.9
   Real Estate
     Construction                            --              --
     Commercial                             1.1             0.2
     Residential                            0.5             0.7
   Installment                              3.4             3.6
   Leases                                   0.2              --
----------------------------------------------------------------------
     Total Domestic                        12.2             7.4
   Foreign                                  8.9             1.0
----------------------------------------------------------------------
Total Recoveries                           21.1             8.4
----------------------------------------------------------------------
Net Charge-Offs                          (104.6)          (44.2)
Provision for Loan Losses                  58.9            96.9
Other Net
 Additions (Reductions)(1)                 (0.7)           (0.3)
----------------------------------------------------------------------
Balance at End of Period                 $199.8          $246.6
======================================================================
Ratio of Net Charge-Offs
 to Average Loans
 Outstanding (annualized)                  2.45%           0.94%
----------------------------------------------------------------------
Ratio of Allowance
 to Loans Outstanding                      2.62%           2.56%
----------------------------------------------------------------------
(1) Includes balance transfers, reserves acquired, and foreign
    currency translation adjustments.



Pacific Century Financial Corporation and subsidiaries
Analysis of Earnings (Unaudited)
Three Months Ended June 30, 2001                             Table 9
----------------------------------------------------------------------
(dollars in millions except per share amounts)

                                      Allocated
                          -----------------------------------
                          Restructuring Divesting  Continuing Reported
                          Impact        Businesses Businesses Amounts
----------------------------------------------------------------------
Net Revenue                   $ 36        $ 37       $ 142     $ 215
Non-Interest Expense            39          31          92       162
                             -----------------------------------------
                                (3)          6          50        53
Provision for Loan Losses       --           4           2         6
                             -----------------------------------------
Income Before Income Taxes      (3)          2          48        47
Provision for Income Taxes       1           1          18        20
                             -----------------------------------------
  Net Income                  $ (4)        $ 1        $ 30      $ 27
  Earnings Per
   Share-Diluted           $ (0.05)     $ 0.01      $ 0.36    $ 0.32



Continuing Business Outlook
Year Ending 2001
----------------------------------------------------------------------
(dollars in millions except per share amounts)

                              Historical
                               Amounts     Current Outlook
                            ------------ -------------------- Previous
                              Q1     Q2   Q3 & Q4  Full Year  Outlook
----------------------------------------------------------------------

Net Revenue                $ 147   $ 142    $ 289    $ 578     $ 581
Non-Interest Expense          96      92      185      373       373
                          --------------------------------------------
                              51      50      104      205       208
Provision for Loan Losses     12       2       21       35        45
                          --------------------------------------------
Income Before Income Taxes    39      48       83      170       163
Provision for Income Taxes    15      18       35       68        61
                          --------------------------------------------
  Allocated Net Income      $ 24    $ 30     $ 48    $ 102     $ 102
  Allocated Earnings
   Per Share-Diluted      $ 0.29  $ 0.36                      $ 1.29

    This information is based on estimates of current and future
performance of identified business units within a range of 2%. Readers
are reminded to refer to the guidance regarding forward looking
information.


Pacific Century Financial Corporation and subsidiaries
Quarterly Summary of Selected
Consolidated Financial Data  (Unaudited)                    Table 10
----------------------------------------------------------------------
(dollars in millions               June 30      Mar. 31      Dec. 31
 except per share amounts)            2001         2001         2000
----------------------------------------------------------------------

Balance Sheet Totals
Total Assets                    $ 12,755.5   $ 13,710.7   $ 14,013.8
Net Loans                          7,418.6      8,225.2      8,988.9
Deposits                           8,108.5      8,815.5      9,080.6
Long-Term Debt                       830.9        882.7        997.2
Shareholders' Equity               1,395.7      1,371.9      1,301.4

Quarterly Operating Results
Net Interest Income                $ 116.8      $ 125.2      $ 132.1
Provision for Loan Losses              6.4         52.5         25.8
Non-Interest Income                   98.4        160.7         70.6
Non-Interest Expense                 161.8        172.6        123.1
Net Income                            26.7         33.7         32.6

Basic Earnings Per Share             $0.33        $0.42        $0.41
Diluted Earnings Per Share           $0.32        $0.42        $0.41

Return on Average Assets             0.83%        0.99%        0.94%
Return on Average Equity             7.69%       10.42%       10.24%
Core Efficiency Ratio               68.74%       54.21%       60.37%

Excluding the Effects
 of Intangibles (1)
    Net Income                       $28.7        $38.7        $36.2
    Basic Earnings Per Share         $0.36        $0.49        $0.46
    Diluted Earnings Per Share       $0.35        $0.48        $0.45
    Return on Average Assets         0.90%        1.15%        1.06%
    Return on Average Equity         9.41%       14.01%       13.42%
    Core Efficiency Ratio           66.71%       52.54%       58.19%

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


Pacific Century Financial Corporation and subsidiaries
Quarterly Summary of Selected
Consolidated Financial Data  (Unaudited)                    Table 10
                                                             (cont)
----------------------------------------------------------------------
(dollars in millions              Sept. 30             June 30
 except per share amounts)            2000                2000
----------------------------------------------------------------------

Balance Sheet Totals
Total Assets                     $ 13,939.9         $ 14,294.6
Net Loans                           9,094.3            9,368.7
Deposits                            8,820.7            9,109.1
Long-Term Debt                        999.7              902.2
Shareholders' Equity                1,250.1            1,209.4


Quarterly Operating Results
Net Interest Income                 $ 132.8            $ 132.3
Provision for Loan Losses              20.1               83.4
Non-Interest Income                    67.0               79.2
Non-Interest Expense                  124.2              121.2
Net Income                             34.6                6.7

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

Return on Average Assets              0.98%               0.19%
Return on Average Equity             11.20%               2.19%
Core Efficiency Ratio                62.12%              60.57%

Excluding the Effects
 of Intangibles (1)
    Net Income                       $38.3               $10.5
    Basic Earnings Per Share         $0.48               $0.13
    Diluted Earnings Per Share       $0.48               $0.13
    Return on Average Assets          1.10%               0.30%
    Return on Average Equity         14.76%               4.10%
    Core Efficiency Ratio            59.83%              58.43%

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

Contact:
Pacific Century Financial
Stafford Kiguchi, 808/537-8580 (Media)
808/363-5383 (pager)
skiguchi@boh.com
Cindy Wyrick, 808/537-8430 (Investors/Analysts)
cwyrick@boh.com