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Pacific Century Financial Corporation Third Quarter 2001 Financials

HONOLULU--(BUSINESS WIRE)--Oct. 22, 2001--Pacific Century Financial Corp. (NYSE:BOH - news)

  • Net Income $31.1 Million or $0.37 Per Share
  • Core Net Income $31.4 Million or $0.38 Per Share
  • Year-to-Date Net Income Up 13% From Prior Year
  • $200 Million Share Repurchase Program Initiated
  • Board of Directors Declares Dividend of $0.18 Per Share

Pacific Century Financial Corporation (NYSE:BOH - news) today reported third quarter 2001 diluted earnings per share of $0.37, compared to $0.32 for the second quarter of 2001 and $0.44 for the third quarter of 2000. Net income for the quarter was $31.1 million, up $4.4 million from the $26.7 million reported in the second quarter of 2001 and down $3.5 million from the $34.6 million reported in the third quarter of 2000. Pacific Century Financial Corporation also announced its authorization to repurchase an additional $200 million of its common stock.

``The third quarter's results demonstrate our ongoing commitment to position the company for improved financial performance,'' said Michael E. O'Neill, Chairman and Chief Executive Officer. ``We're pleased with our progress in the execution of our strategic plan. Using capital from the sale of assets, we are extending our recently completed $70 million share repurchase program. Pacific Century Financial Corporation continues to be a solid company with a strong capital base and exceptional liquidity.

``Prior to the tragic events of September 11, 2001 our asset quality was continuing to improve. Our strong allowance and financial position will be sources of strength for the company in the period ahead.''

For the nine months ended September 30, 2001, net income was $91.5 million or $1.11 per diluted share, up 13 percent from net income of $81.1 million, or $1.02 per diluted share for the same period last year. Year-to-date return on average assets was 0.94 percent compared to 0.77 percent for the first nine months of 2000. Year-to-date return on average equity was 8.96 percent versus 8.85 percent for the nine months ended September 30, 2000.

Included in the earnings for third quarter of 2001 were several significant items relating to implementation of the company's previously announced strategic plan which had a net effect of reducing net income by $0.4 million, or less than $0.01 per share. These items included a gain of $49.4 million from the sale of the Pacific Century branch franchise in California, which was largely offset by the related sales costs and tax obligations. Also included were non-recurring adjustments and restructuring costs which netted to a cost of $0.4 million after tax. Adjusted for these items and their related tax impact, core earnings per share for the quarter were $0.38 and core net income was $31.4 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 $112.0 million, down $4.9 million from the previous quarter primarily due to the sale of the Pacific Century Bank branches and the continued managed reduction of loans to improve the company's credit profile. Net interest income was down $20.9 million from the same quarter last year primarily due to the first quarter 2001 sale of the company's credit card portfolio and the previously mentioned loan reductions.

The company's net interest margin for the third quarter of 2001 of 3.90 percent was essentially unchanged from the second quarter of 2001 but was down from 4.10 percent in the third quarter last year. The decline from the prior year quarter was primarily due to loan reductions, including the sale of its credit card portfolio, and lower returns earned on the increased liquidity of the company.

The provision for loan and lease losses was $0.9 million for the third quarter 2001, reflecting earlier improvements in the company's asset quality and its strong allowance for loan and lease losses. This compares to a provision for loan and lease losses in the prior quarter of $6.4 million and $20.1 million in the third quarter last year. Contributing to the lower provision were continued high levels of recoveries, which totaled $15.0 million for the quarter, including a $6.5 million recovery in the Asia business.

Non-interest income was $113.9 million for the third quarter, including $51.6 million in non-recurring items. Adjusted for these items, non-interest income was essentially unchanged from the previous quarter core non-interest income but was down $4.7 million from the prior year quarter. Decreases in non-interest income were largely due to the company's intentional downsizing of certain businesses. The most significant impact was in fees, exchange and other service charges due to reduced foreign exchange, trading and letter of credit fees resulting from the wind down in Asia as well as reduced interchange resulting from the sale of the company's credit card portfolio. Trust and asset management income was down from the prior period largely due to a decrease in fees from asset management and tax services. These declines were partially offset by an increase in mortgage banking income.

Non-interest expense for the quarter was $123.3 million compared to $124.2 million for the same quarter last year. Excluding the $2.9 million of restructuring and related costs, core non-interest expense decreased $3.8 million from the prior year quarter and $2.4 million from core non-interest expense of $122.8 million in the second quarter 2001.

The quarter's core efficiency ratio of 67.2%, excluding intangible amortization, was negatively impacted by the divesting businesses, where revenue declined more quickly than the related expenses. The company anticipates that the efficiency ratio will return to a more normal level during 2002.

The effective tax rate of 69 percent for the third quarter of 2001 results from the effect of non-tax-deductible goodwill and other costs associated with the divestitures. Excluding the effects of the divesting businesses, the effective tax rate was approximately 38.5%.

Net income from continuing businesses was $29 million, or $0.35 per share, down $1 million from the previous quarter. Improvements in revenue and expenses of the continuing businesses were more than offset by a $4 million increase in the provision for loan and lease losses. Excluding effects of restructuring, net income for the divested businesses was $2 million, or $0.03 per share. The increase in net income from the divesting businesses compared with the previous quarter was due to a net recovery of $5 million in loans previously charged off.

Asset Quality

The largest part of the company's continuing business is based in Hawaii where tourism is a significant influence on the economy. Immediately after the tragic events of September 11, tourism was adversely affected. Recently, major sectors of the tourism industry have seen indications of improvement as visitor arrivals, particularly from the United States, have strengthened. The extent of the economic impact on Hawaii's tourism business will depend on future events. However, management's progress in improving asset quality over the past year, combined with a strong allowance has limited the initial impact on earnings.

Following September 11, a forward looking review was completed of individual borrowers in identified high and medium impact industries where greater than 20 percent of their revenues are tied to tourism. In response, allocated reserves were increased for those portfolio segments. Improvement in asset quality and loan reductions prior to the event allowed for a reallocation without incremental provisioning.

Non-performing assets, exclusive of loans past due 90+ days, decreased for the fourth consecutive quarter to $106.4 million. Compared to the previous quarter, non-performing assets declined $12.5 million in the third quarter and were down $113.2 million or 51.5 percent from the same period last year.

At September 30, 2001, the ratio of non-performing assets to total loans plus foreclosed real estate was 1.56 percent compared to 1.55 percent at June 30, 2001 and 2.35 percent at September 30, 2000. The slightly higher ratio in the third quarter of 2001 compared to the previous quarter is due to a decrease of over $900 million in loans, including $544 million resulting from the sale of Pacific Century Bank loans. Other reductions during the quarter included $166 million in commercial loans sold prior to September 11 in order to reduce credit risk. Additionally, the company collected $203 million of Asia loans pursuant to the implementation of its strategic plan.

Non-accrual loans of $61.8 million at the end of the third quarter declined $5.5 million or 8.2 percent from the previous quarter and $152.7 million or 71.2 percent from the same period last year. Non-accrual loans as a percentage of total loans were 0.91 percent, a slight increase from 0.88 percent in the previous quarter due to lower loan levels and down significantly from 2.30 percent in the same period last year.

Net charge-offs for the third quarter of 2001 were $2.4 million or 0.13 percent of total average loans (annualized) compared to 0.34 percent in the prior quarter and 0.82 percent in the prior year. Charge-offs of $17.4 million were largely offset by recoveries of $15.0 million. The allowance for loan and lease losses at September 30, 2001 was $182.5 million, down $17.3 million from the prior quarter and down significantly from $245.0 million at September 30, 2000. The decrease from the prior quarter is due to the release of reserves resulting from the sale of Pacific Century Bank loans.

The ratio of the allowance for loan and lease losses to non-accrual loans was 295 percent, down slightly from the previous quarter and up from 114 percent last year. The ratio of the allowance for loan and lease losses to total loans was 2.70 percent at the end of the third quarter 2001, up from 2.62 percent at the end of the second quarter 2001 and 2.62 percent at the end of the same quarter last year.

The company's total exposure to the air transportation industry at September 30, 2001 was $188 million, consisting of $141 million in secured equity interests in leveraged aircraft leases and $47 million in lending exposure, of which $38 million was undrawn, including $24 million to an air cargo carrier. The leases comprise $95 million on 14 aircraft leased to United States and international passenger carriers, $31 million on 16 aircraft leased to regional passenger carriers and $15 million on one aircraft leased to an air cargo carrier.

At September 30, 2001 outstanding loans to national hotel and management companies totaled $72 million with undrawn commitments of $44 million. In October, the company sold $10 million of this exposure. Subsequent to this sale, approximately 60 percent of the company's exposure to national hotel and management companies are investment grade. Exposure to hotel companies in Hawaii at September 30, 2001 included loans outstanding of $126 million and undrawn commitments of $12 million. In the West and South Pacific, loans outstanding to hotel owners totaled $54 million and $18 million, respectively. Approximately 80 percent of the Hawaii and Pacific hotel loans are collateralized by hotel properties or guaranteed by either financial institutions or entities with limited exposure to tourism.

All of the company's air transportation and hotel loans and leases are performing.

Loans outstanding in Asia decreased $203 million or 59 percent to $142 million at the end of the quarter. Total Asia exposure, including loans, placements and off balance sheet items, decreased $94 million to $345 million.

Syndicated loans outstanding decreased $97 million to $585 million during the third quarter. Syndicated exposure consisting of loans and undrawn commitments declined $526 million to $1.7 billion at September 30, 2001.

Strategic Plan Update

During the third quarter 2001, Pacific Century Financial Corporation made significant progress in the implementation of its strategic plan to refocus the company on its core markets. On August 31, 2001, the company closed its Bank of Hawaii Hong Kong branch and its representative office and two extension offices in the Philippines. The remaining Asia branches and subsidiaries have stopped accepting business and will be closed by the end of the year.

On September 7, 2001, the company completed the sale of all 20 branches of Pacific Century Bank in Southern California to U.S. Bancorp. On October 3, 2001, Pacific Century Financial Corporation reached a definitive agreement to sell its operations in Papua New Guinea, Vanuatu and Fiji to Australia-based ANZ. The sale, which is subject to regulatory approvals, is expected to be completed before the end of the year. The company is currently in discussions with interested potential purchasers of its banks in French Polynesia and New Caledonia.

As part of the company's overall strategic plan, Bank of Hawaii, on October 1, 2001, launched its new retail banking plan aimed at doubling the Retail Banking Group's Net Income After Capital Charge (NIACC) within three years. The plan focuses on building a strong sales and service culture which will increase the cross-sell ratios to new and existing consumer and small business customers. Key initiatives will improve the capabilities of the sales staff, enhance processes in the branch and call center channels and broaden expertise in product management areas.

Other Financial Highlights

Total assets were $11.9 billion at the end of September 30, 2001. The most significant reductions were in commercial loans, including foreign loans and commercial real estate loans. Asset reductions remain on schedule although mortgage loan sales have slowed due to the significant origination volumes.

Deposits at the end of the third quarter were $7.4 billion. Compared with second quarter 2001, deposits declined primarily due to the September sale of the Pacific Century Bank branches, which reduced total deposits $0.7 million, and the managed decline in foreign deposits resulting from the company's decision to exit certain foreign locations. During the third quarter domestic deposits have shown positive trends as both consumer and business demand and savings balances increased.

As part of its efforts to effectively manage capital, the company announced a program during the third quarter of 2001 to repurchase $70 million of common shares. At September 30, 2001 the company had repurchased 2.7 million shares at an average price of $23.37. The remainder of this initial repurchase program was completed in October 2001. Pacific Century is currently initiating an additional $200 million repurchase program. Capital has remained essentially unchanged. At September 30, 2001 Tier 1 leverage was 11.37% compared to 10.47% at June 30, 2001 and 8.80% at September 30, 2000. The company's liquidity is exceptionally strong.

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 December 14, 2001 to shareholders of record at the close of business on November 23, 2001.

Financial and Economic Outlook

The Hawaii economy continues to show improvement from the initial decline in tourism following the September 11 attacks. Through the fourth quarter of 2001 we expect visitor arrivals to be well short of prior year levels. While a long-term return to normalcy is anticipated, it is too soon to tell when that will occur.

The company updated its earnings guidance for the full year 2001 to $106 million for its continuing businesses. The aggregate cost of restructuring cannot be further refined until the sales price of its banks in the French Territories is determined. Earnings per share projections are dependent upon the terms and timing of share repurchases.

The company will review third 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 800/450-0788 in the U.S. or 612/332-0636 for international callers. A replay will be available for one week beginning at 6:00 p.m. ET on Monday, October 22, 2001 by calling 800/475-6701 (U.S.) or 320/365-3844 (International) and entering the number 605662 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 company serving businesses, consumers and governments in Hawaii, American Samoa and the West Pacific. The company is in the process of divesting or winding down its non-core holdings in the South Pacific and Asia, exclusive of Japan. Pacific Century's principal subsidiary, Bank of Hawaii, was founded in 1897 and is the dominant commercial bank in the state of Hawaii.

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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 September 30
   Net Income                            $    31,059       $   34,603
   Basic Earnings Per Share                     0.39             0.44
   Diluted Earnings Per Share                   0.37             0.44
   Cash Dividends                             14,625           14,302
   Return on Average Assets                     1.00%            0.98%
   Return on Average Equity                     8.88%           11.20%
   Net Interest Margin                          3.90%            4.10%
   Core Efficiency Ratio(a)                    69.12%           62.15%

Nine Months Ended September 30
   Net Income                            $    91,475       $   81,075
   Basic Earnings Per Share                     1.14             1.02
   Diluted Earnings Per Share                   1.11             1.02
   Cash Dividends                             43,415           42,147
   Return on Average Assets                     0.94%            0.77%
   Return on Average Equity                     8.96%            8.85%
   Net Interest Margin                          3.92%            4.11%
   Core Efficiency Ratio(a)                    67.68%           61.58%


Cash Basis Financial Data
----------------------------------------------------------------------
Three Months Ended September 30
   Net Income                            $    34,392       $   38,743
   Basic Earnings per Share              $      0.43       $     0.49
   Diluted Earnings per Share            $      0.41       $     0.49
   Return on Average Assets                     1.12%            1.12%
   Return on Average Equity                    11.17%           14.88%
   Core Efficiency Ratio(a)(b)                 67.21%           60.08%

Nine Months Ended September 30
   Net Income                            $   102,391       $   93,554
   Basic Earnings per Share              $      1.28       $     1.18
   Diluted Earnings per Share            $      1.24       $     1.17
   Return on Average Assets                     1.06%            0.90%
   Return on Average Equity                    11.52%           12.22%
   Core Efficiency Ratio(a)(b)                 65.70%           59.50%


(a) Excludes the effect of restructuring activities and non-recurring
    transactions.

(b) Excludes the effect of intangibles which include goodwill, core
    deposit and trust intangibles.


                                      September 30      September 30
Statement of Condition Highlights             2001              2000
----------------------------------------------------------------------
Total Assets                           $11,944,173       $13,939,861
Net Loans                                6,584,122         9,094,337
Total Deposits                           7,399,737         8,820,668
Total Shareholders' Equity               1,371,055         1,250,069

Book Value Per Common Share            $     17.31       $     15.72
Allowance / Loans Outstanding                 2.70%             2.58%
Average Equity / Average Assets              10.47%             8.65%
Employees (FTE)                              3,881             4,182
Branches                                       140               171

Market Price Per Share of Common
 Stock Quarter Ended
    Closing                            $     23.37       $     17.13
    High                               $     28.30       $     17.50
    Low                                $     20.20       $     13.13


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          Nine Months Ended
                     Sept 30     Sept 30      Sept 30       Sept 30
                       2001         2000         2001          2000
----------------------------------------------------------------------
Interest Income
Interest on
 Loans           $  143,407   $  203,858    $  496,381   $  593,240
Interest and
 Dividends
 on Investment
 Securities          10,002       13,184        32,824       41,263
Income on
 Investment
 Securities
 Available
 for Sale            30,779       41,772       106,226      123,966
Deposits              9,410        3,319        19,527       10,917
Funds Sold
 and Security
 Resale
 Agreements           1,781          632         4,231        1,606
----------------------------------------------------------------------
   Total Interest
    Income          195,379      262,765       659,189      770,992

Interest Expense
Deposits             50,167       73,162       182,247      212,440
Security
 Repurchase
 Agreements          17,576       26,941        63,049       75,915
Funds Purchased       1,279        8,960         9,735       25,321
Short-Term
 Borrowings           2,019        4,739         8,013       15,785
Long-Term Debt       12,459       16,164        42,232       42,171
----------------------------------------------------------------------
   Total Interest
    Expense          83,500      129,966       305,276      371,632
----------------------------------------------------------------------
Net Interest
 Income             111,879      132,799       353,913      399,360
Provision
 for Loan Losses        919       20,145        59,798      117,074
----------------------------------------------------------------------
Net Interest
 Income After
 Provision
 for Loan Losses    110,960      112,654       294,115      282,286
Non-Interest
 Income
Trust and Asset
 Management          13,999       15,874        45,041       49,078
Mortgage Banking     10,307        3,086        19,990        7,964
Service Charges
 on Deposit
 Accounts             9,594       10,074        29,412       29,811
Fees, Exchange,
 and Other Service
 Charges             17,912       25,398        61,505       74,883
Gain on Sale
 of Banking
 Operations          49,422           --       149,630           --
Gain on Settlement
 of Pension
 Obligation              --           --            --       11,900
Investment
 Securities
 Gains (Losses)         935          (82)       32,819         (315)
Other Operating
 Income              11,780       12,676        34,663       41,348
----------------------------------------------------------------------
   Total
    Non-Interest
    Income          113,949       67,026       373,060      214,669
Non-Interest
 Expense
Salaries             47,069       45,220       142,674      137,227
Pensions and Other
 Employee Benefits   12,180       12,303        39,076       37,721
Net Occupancy
 Expense             12,090       12,577        36,702       36,873
Net Equipment
 Expense             13,042       13,365        40,150       37,498
Goodwill
 Amortization         3,333        4,139        10,916       12,479
Restructuring and
 Other
 Related Costs          823           --        83,012           --
Minority Interest        76          110           239          286
Other
 Operating
 Expense             34,726       36,476       105,045      108,685
----------------------------------------------------------------------
  Total
   Non-Interest
   Expense          123,339      124,190       457,814      370,769
----------------------------------------------------------------------
Income Before
 Income Taxes       101,570       55,490       209,361      126,186
Provision for
 Income Taxes        70,511       20,887       117,886       45,111
----------------------------------------------------------------------

Net Income       $   31,059   $   34,603    $   91,475   $   81,075
======================================================================
Basic Earnings
 Per Share       $     0.39   $     0.44    $     1.14   $     1.02
Diluted Earnings
 Per Share       $     0.37   $     0.44    $     1.11   $     1.02
Dividends
 Declared
 Per Share       $     0.18   $     0.18    $     0.54   $     0.53
Basic
 Weighted
 Average Shares  80,539,330   79,455,040    80,261,610   79,566,807
Diluted
 Weighted
 Average Shares  83,418,955   79,525,474    82,497,107   79,791,250
======================================================================



Pacific Century Financial Corporation and subsidiaries
Consolidated Statements of Condition (Unaudited)              Table 3
----------------------------------------------------------------------
(dollars in thousands)

                            Sept 30          Dec 31          Sept 30
                             2001             2000             2000
Assets
Interest-Bearing
 Deposits               $  1,227,817    $    188,649    $    185,312
Investment Securities
 - Held to Maturity
 (Market Value of
 $558,561, $676,621
 and $714,920,
 respectively)               547,443         670,038         716,392
Investment Securities
 - Available for Sale      2,065,894       2,507,076       2,484,482
Securities Purchased
 Under Agreements
 to Resell                     7,639           3,969           5,560
Funds Sold                   162,830         134,644          28,323
Loans Held for Sale          228,056         179,229         139,139
Loans                      6,766,663       9,235,158       9,339,303
  Allowance for Loan
   Losses                   (182,541)       (246,247)       (244,966)
----------------------------------------------------------------------
    Net Loans              6,584,122       8,988,911       9,094,337
----------------------------------------------------------------------
    Total Earning
     Assets               10,823,801      12,672,516      12,653,545
Cash and Non-Interest
 Bearing Deposits            426,162         523,969         438,312
Premises and Equipment       223,304         254,621         251,240
Customers' Acceptance
 Liability                     1,310          14,690          10,956
Accrued Interest
 Receivable                   56,003          68,585          86,109
Other Real Estate             37,462           4,526           5,128
Intangibles, including
 Goodwill                     91,517         192,264         194,418
Other Assets                 284,614         282,645         300,153
----------------------------------------------------------------------
    Total Assets        $ 11,944,173    $ 14,013,816    $ 13,939,861
======================================================================
Liabilities
Domestic Deposits
  Demand
  - Non-Interest
    Bearing             $  1,428,454    $  1,707,724    $  1,626,426
  - Interest Bearing       1,792,155       2,008,730       2,039,325
  Savings                    813,427         665,239         671,437
  Time                     2,186,849       2,836,083       2,801,947
Foreign Deposits
  Demand
   - Non-Interest
     Bearing                 321,706         385,366         343,828
  Time Due to Banks          269,757         535,126         571,576
  Other Savings and Time     587,389         942,313         766,129
----------------------------------------------------------------------
    Total Deposits         7,399,737       9,080,581       8,820,668
Securities Sold
 Under Agreements
 to Repurchase             1,833,091       1,655,173       1,791,983
Funds Purchased              129,715         413,241         377,069
Short-Term Borrowings        154,910         211,481         365,407
Bank's Acceptances
 Outstanding                   1,310          14,690          10,956
Accrued Retirement
 Expense                      36,632          37,868          37,796
Accrued Interest
 Payable                      49,092          72,460          80,792
Accrued Taxes
 Payable                     224,915         130,766          97,597
Minority Interest              4,381           4,536           4,154
Other Liabilities             60,927          94,512         103,634
Long-Term Debt               678,408         997,152         999,736
----------------------------------------------------------------------
 Total Liabilities        10,573,118      12,712,460      12,689,792
Shareholders' Equity
Common Stock
 ($.01 par value),
 authorized 500,000,000
 shares;  issued /
 outstanding:
 Sept 2001 -
 81,365,600 / 79,195,668;
 December 2000 -
 80,558,811 / 79,612,178;
 Sept 2000 -
 80,556,883 / 79,503,301         806             806             806
Capital Surplus              367,394         346,045         346,016
Accumulated Other
 Comprehensive Income         25,426         (25,079)        (56,620)
Retained Earnings          1,044,039         996,791         979,007
Deferred Stock Grants        (15,526)             --              --
Treasury Stock,
 at Cost - (Shares:
 Sept 2001 -
 2,169,932;
 December 2000 -
 946,633;
 and Sept 2000 -
 1,053,582)                  (51,084)        (17,207)        (19,140)
----------------------------------------------------------------------
  Total Shareholders'
   Equity                  1,371,055       1,301,356       1,250,069
----------------------------------------------------------------------
   Total Liabilities
    and Shareholders'
    Equity              $ 11,944,173    $ 14,013,816    $ 13,939,861
======================================================================



Pacific Century Financial Corporation and subsidiaries
Consolidated Statements of Shareholders' Equity (Unaudited)   Table 4
----------------------------------------------------------------------
(dollars in thousands)
                                                         Accumulated
                                                               Other
                                                             Compre-
                                        Common   Capital     hensive
                                 Total   Stock   Surplus      Income

Balance at
 December 31, 2000         $ 1,301,356    $806   $346,045   $(25,079)
Comprehensive Income
Net Income                      91,475      --         --         --
Other Comprehensive
 Income, Net of Tax
Investment Securities           23,906      --         --     23,906
Foreign Currency
 Translation Adjustment         25,911      --         --     25,911
Pension Liability
 Adjustments                      (159)     --         --       (159)
Stock Compensation                 847      --         --        847

 Total Comprehensive
 Income


Common Stock Issued
46,408 Profit
 Sharing Plan                    1,065      --         257        --
604,264 Stock
 Option Plan                    10,313      --         892        --
91,764 Dividend
 Reinvestment Plan               2,103      --         483        --
4,248 Directors'
 Restricted Shares and
 Deferred
 Compensation Plan                 341      --          95        --
724,600 Employees'
 Restricted Shares               2,797      --      18,323        --
65,146 Hawaii
 Insurance Network               1,299      --       1,299        --
Treasury Stock Purchased       (46,784)     --          --        --
Cash Dividends Paid            (43,415)     --          --        --
----------------------------------------------------------------------
Balance at
 September 30, 2001        $ 1,371,055    $806    $367,394  $ 25,426
======================================================================

Balance at
 December 31, 1999         $ 1,212,330    $806    $345,851  $(66,106)
Comprehensive Income
Net Income                      81,075      --          --        --
Other Comprehensive
 Income, Net of Tax
Investment Securities            9,960      --          --     9,960
Foreign Currency
 Translation Adjustment           (474)     --          --      (474)

Total Comprehensive Income

Common Stock Issued
62,102 Profit
 Sharing Plan                    1,096      --          18        --
195,094 Stock
 Option Plan                     2,610      --          --        --
142,421 Dividend
 Reinvestment Plan               2,481      --          52        --
4,973 Directors'
 Restricted Shares and
 Deferred
 Compensation Plan                  95      --          95        --

Treasury Stock
 Purchased                     (16,957)     --          --        --
Cash Dividends Paid            (42,147)     --          --        --
----------------------------------------------------------------------
Balance at
 September 30, 2000        $ 1,250,069    $806    $346,016  $(56,620)
======================================================================

Pacific Century Financial Corporation and subsidiaries
Consolidated Statements of Shareholders' Equity (Unaudited)   Table 4
                                                              (cont.)
----------------------------------------------------------------------
(dollars in thousands)

                                      Deferred             Compre-
                          Retained    Stock     Treasury    hensive
                          Earnings    Grants    Stock       Income
Balance at
 December 31, 2000     $  996,791  $     --   $   (17,207)
Comprehensive Income
Net Income                 91,475        --            --   $ 91,475
Other Comprehensive
 Income, Net of Tax
Investment Securities          --        --            --     23,906
Foreign Currency
 Translation
 Adjustment                    --        --            --     25,911
Pension Liability
 Adjustments                   --        --            --       (159)
Stock Compensation             --        --            --        847
                                                            --------
 Total Comprehensive
 Income                                                     $141,980
                                                            ========
Common Stock Issued
46,408 Profit
 Sharing Plan                  --        --           808
604,264 Stock
 Option Plan                 (812)       --        10,233
91,764 Dividend
 Reinvestment Plan             --        --         1,620
4,248 Directors'
 Restricted
 Shares and
 Deferred
 Compensation Plan             --        --           246
724,600 Employees'
 Restricted Shares             --   (15,526)           --
65,146 Hawaii
 Insurance Network             --        --            --
Treasury Stock
 Purchased                     --        --       (46,784)
Cash Dividends Paid       (43,415)       --            --
----------------------------------------------------------------------
Balance at
 September 30, 2001    $1,044,039   $ (15,526)$   (51,084)
======================================================================

Balance at
 December 31, 1999     $  942,177   $      -- $   (10,398)
Comprehensive Income
Net Income                 81,075          --          --   $ 81,075
Other Comprehensive
 Income, Net of Tax
Investment
 Securities                    --          --          --      9,960
Foreign Currency
 Translation
 Adjustment                    --          --          --       (474)
                                                            --------
Total Comprehensive
 Income                                                     $ 90,561
                                                            ========

Common Stock Issued
62,102 Profit
 Sharing Plan                (167)         --       1,245
195,094 Stock
 Option Plan               (1,500)         --       4,110
142,421 Dividend
 Reinvestment Plan           (431)         --       2,860
4,973 Directors'
 Restricted
 Shares and
 Deferred
 Compensation Plan           --            --          --

Treasury Stock
 Purchased                   --            --     (16,957)
Cash Dividends Paid       (42,147)         --          --
----------------------------------------------------------------------
Balance at
 September 30, 2000    $  979,007   $      -- $   (19,140)
======================================================================



Pacific Century Financial Corporation and subsidiaries
Consolidated Average Balances and Interest Rates
 Taxable Equivalent (Unaudited)                               Table 5
----------------------------------------------------------------------
(dollars in millions)
                     Three Months Ended         Three Months Ended
                     September 30, 2001          June 30, 2001
                 Average   Income/   Yield/  Average   Income/  Yield/
                 Balance   Expense   Rate    Balance   Expense  Rate
---------------------------------------------------------------------------------
Earning Assets
 Interest
  Bearing
  Deposits      $   938.7 $    9.4   3.98%  $   414.3 $    4.9  4.75%
 Funds Sold         194.2      1.8   3.59       120.3      1.4  4.45
 Investment
  Portfolio
   Held-To-
    Maturity        605.8     10.1   6.63       642.1     11.1  6.94
   Available
    for Sale      2,139.6     30.8   5.75     2,318.3     36.2  6.24
  Loans Held
   For Sale         312.2      5.3   6.79       430.9      7.4  6.88
  Net Loans
   Domestic       6,351.6    121.3   7.60     6,910.9    137.1  7.95
   Foreign          920.4     16.8   7.23     1,136.9     19.3  6.80
                --------------------------  --------------------------
  Total Loans     7,272.0    138.1   7.56     8,047.8    156.4  7.79
                --------------------------  --------------------------
  Total Earning
   Assets        11,462.5    195.5   6.79    11,973.7    217.4  7.27

Cash and Due
 From Banks         347.3                       367.6
Other Assets        488.9                       655.1
                ----------                  ----------
  Total Assets  $12,298.7                   $12,996.4
                ==========                  ==========

Interest Bearing
 Liabilities
  Domestic
   Deposits
    Demand      $ 1,892.6      8.3   1.74   $ 1,905.0      9.3  1.95
    Savings         794.9      4.6   2.29       698.8      3.7  2.14
    Time          2,432.0     29.5   4.82     2,654.1     37.3  5.64
                --------------------------  --------------------------
   Total
    Domestic
    Deposits      5,119.5     42.4   3.29     5,257.9     50.3  3.83
  Foreign
   Deposits
    Time Due
     to Banks       235.3      2.2   3.78       317.4      3.5  4.45
    Other Time
     and Savings    640.7      5.5   3.41       709.3      6.3  3.55
                --------------------------  --------------------------
   Total Foreign
    Deposits        876.0      7.7   3.51     1,026.7      9.8  3.83
                --------------------------  --------------------------
   Total Interest
    Bearing
    Deposits      5,995.5     50.1   3.32     6,284.6     60.1  3.83
  Short-Term
   Borrowings     2,012.6     20.9   4.11     2,108.2     25.9  4.94
  Long-Term Debt    746.0     12.5   6.63       864.5     14.5  6.71
                --------------------------  --------------------------
   Total Interest
    Bearing
    Liabilities   8,754.1     83.5   3.78     9,257.3    100.5  4.35
                --------------------------  --------------------------
   Net Interest
    Income                   112.0                       116.9
     Interest
      Rate
      Spread                         3.01%                      2.92%
     Net Interest
      Margin                         3.90%                      3.91%
Demand Deposits
 Domestic         1,509.0                     1,567.8
 Foreign            330.7                       348.4
                ----------                  ----------
  Total Demand
   Deposits       1,839.7                     1,916.2
Other
 Liabilities        316.6                       428.5
Shareholders'
 Equity           1,388.3                     1,394.4
                ----------                  ----------
  Total
   Liabilities
   and
   Shareholders'
   Equity       $12,298.7                   $12,996.4
                ==========                  ==========

Provision for
 Loan Losses                   0.9                         6.4
Net Overhead                   9.4                        63.5
                           --------                    --------
Income Before
 Income Taxes                101.7                        47.0
Provision for
 Income Taxes                 70.5                        20.2
Tax-Equivalent
 Adjustment                    0.1                         0.1
                           --------                    --------
Net Income                  $ 31.1                      $ 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
                             September 30, 2000(A)
                           Average  Income/   Yield/
                           Balance  Expense   Rate
                        -----------------------------
Earning Assets
 Interest
  Bearing
  Deposits                 $ 197.3  $  3.3    6.69%
 Funds Sold                  38.8      0.6    6.48
 Investment
  Portfolio
   Held-To-
    Maturity                720.1     13.3    7.36
   Available
    for Sale              2,490.1     41.8    6.67
  Loans Held
   For Sale                 118.5      2.3    7.72
  Net Loans
   Domestic               8,074.9    178.1    8.77
   Foreign                1,435.2     25.2    7.00
                        --------------------------
  Total Loans             9,510.1    203.3    8.51
                        --------------------------
  Total Earning
   Assets                13,074.9    264.7    8.05

Cash and Due
 From Banks                 418.2
Other Assets                523.6
                        ----------
  Total Assets          $14,016.7
                        ==========

Interest Bearing
 Liabilities
  Domestic
   Deposits
    Demand              $ 2,043.7     12.0    2.34
    Savings                 680.4      3.4    1.99
    Time                  2,799.4     40.3    5.73
                        --------------------------
   Total
    Domestic
    Deposits              5,523.5     55.7    4.01
  Foreign
   Deposits
    Time Due
     to Banks               552.6      8.5    6.12
    Other Time
     and Savings            821.4      8.8    4.26
                        --------------------------
   Total Foreign
    Deposits              1,374.0     17.3    5.01
                        --------------------------
   Total Interest
    Bearing
    Deposits              6,897.5     73.0    4.21
  Short-Term
   Borrowings             2,599.4     40.7    6.23
  Long-Term Debt            963.4     16.2    6.69
                        --------------------------
   Total Interest
    Bearing
    Liabilities          10,460.3    129.9    4.94
                        --------------------------
   Net Interest
    Income                           134.8
     Interest
      Rate
      Spread                                  3.11%
     Net Interest
      Margin                                  4.10%
Demand Deposits
 Domestic                 1,619.8
 Foreign                    345.6
                        ----------
  Total Demand
   Deposits               1,965.4
Other
 Liabilities                361.6
Shareholders'
 Equity                   1,229.4
                        ----------
  Total
   Liabilities
   and
   Shareholders'
   Equity               $14,016.7
                        ==========

Provision for
 Loan Losses                          20.2
Net Overhead                          58.9
                                   --------
Income Before
 Income Taxes                         55.7
Provision for
 Income Taxes                         20.9
Tax-Equivalent
 Adjustment                            0.2
                                   --------
Net Income                          $ 34.6
                                   ========

(A) Adjusted to reflect the reclassification of interchange fees and
    mortgage banking income.



Pacific Century Financial Corporation and subsidiaries
Loan Portfolio Balances (Unaudited)                           Table 6
----------------------------------------------------------------------
(dollars in millions)
                       September     June      December     September
                         2001        2001        2000          2000
----------------------------------------------------------------------
Domestic Loans
 Commercial and
  Industrial           $1,436.7    $1,775.0    $2,433.6      $2,544.1
 Real Estate
  Construction
   Commercial             144.4       213.6       282.4         284.7
   Residential             31.3        32.4        25.0          22.3
  Mortgage
   Commercial             667.9       866.3     1,125.5       1,169.3
   Residential          2,748.3     2,767.5     2,841.3       2,750.0
 Installment              429.0       475.5       719.4         725.0
 Lease Financing          503.0       554.5       539.8         537.3
----------------------------------------------------------------------
    Total Domestic      5,960.6     6,684.8     7,967.0       8,032.7
 Foreign Loans            806.1       933.6     1,268.2       1,306.6
----------------------------------------------------------------------
    Total Loans        $6,766.7    $7,618.4    $9,235.2      $9,339.3
======================================================================



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)
                    Sept 30   June 30   Mar 31      Dec 31    Sept 30
                     2001      2001      2001        2000       2000
----------------------------------------------------------------------
Non-Accrual Loans
  Commercial &
   Industrial      $   10.5  $   11.8  $   23.8    $   55.4  $   49.0
  Real Estate
   Construction         0.7       5.8       6.3         6.4       8.1
   Commercial          12.8      14.4      29.7        60.1      86.8
   Residential         19.5      16.2      18.5        22.7      22.0
  Installment           0.1       0.2       0.1          --       0.1
  Leases                1.0       0.4       0.2         0.4       0.2
                   ---------------------------------------------------
   Total Domestic      44.6      48.8      78.6       145.0     166.2
  Foreign              17.2      18.5      16.9        33.5      48.3
                   ---------------------------------------------------
    Subtotal           61.8      67.3      95.5       178.5     214.5

  Loans Held
   For Sale             7.4      11.5      12.8          --        --

Foreclosed
 Real Estate
  Domestic             36.9      39.8      10.9         4.2       4.9
  Foreign               0.3       0.3       0.3         0.3       0.2
                   ---------------------------------------------------
    Subtotal           37.2      40.1      11.2         4.5       5.1
                   ---------------------------------------------------
   Total Non-
    Performing
    Assets         $  106.4  $  118.9  $  119.5    $  183.0  $  219.6
                   ===================================================
Accruing Loans
 Past Due 90
 Days or More
  Commercial &
   Industrial      $    0.1  $    0.2  $    3.9    $    5.0  $    2.2
  Real Estate
   Construction
    & Commercial         --        --       0.9         1.3       5.0
   Residential          3.4       3.7       3.3         3.3       7.2
  Installment           1.0       1.8       2.7         5.6       4.6
  Leases                 --       0.1       0.1         0.4       0.1
                   ---------------------------------------------------
   Total Domestic       4.5       5.8      10.9        15.6      19.1
  Foreign               0.8       0.4       0.2         3.2       1.5
                   ---------------------------------------------------
   Total Accruing
    & Past Due     $    5.3  $    6.2  $   11.1    $   18.8  $   20.6
                   ===================================================

Total Loans        $6,766.6  $7,618.4  $8,425.0    $9,235.2  $9,339.3

----------------------------------------------------------------------
Ratio of Non-Accrual
 Loans to
 Total Loans           0.91%     0.88%     1.13%       1.93%     2.30%
----------------------------------------------------------------------
Ratio of Non-
 Performing Assets
 to Total Loans,
 Foreclosed Real
 Estate and Non-
 Performing Loans
 Held for Sale         1.56%     1.55%     1.41%       1.98%     2.35%
----------------------------------------------------------------------
Ratio of Non-
 Performing Assets
 and Accruing Loans
 Past Due 90 Days
 or More to
 Total Loans           1.65%     1.64%     1.55%       2.19%     2.57%
----------------------------------------------------------------------

Quarter to Quarter
 Changes in Non-
 Performing Assets
  Beginning
   Balance         $  118.9  $  119.5  $  183.0    $  219.6  $  210.6

  Additions            23.2      23.8      43.1        50.7      66.9

  Reductions
   Payments           (25.8)    (14.4)    (63.7)      (68.4)    (36.4)
   Return to
    Accrual            (0.9)     (2.5)     (3.0)       (4.4)     (2.9)
   Sales of
    Foreclosed
    Assets             (2.2)     (1.6)     (3.0)       (2.7)     (3.0)
   Charge-offs         (6.8)     (5.9)    (36.9)      (11.8)    (15.6)
                   ---------------------------------------------------
  Total Reductions    (35.7)    (24.4)   (106.6)      (87.3)    (57.9)

   Ending Balance  $  106.4  $  118.9  $  119.5    $  183.0  $  219.6




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

                 Third      Second      Third    First Nine First Nine
                Quarter    Quarter     Quarter     Months     Months
                 2001        2001       2000        2001       2000
----------------------------------------------------------------------
Balance of
 Allowance for
 Loan Losses
 at Beginning
 of Period    $   199.8  $   199.8  $   246.6    $   246.2  $  194.2
Loans
 Charged-Off
  Commercial
  and
  Industrial        3.4        8.9        8.0         87.8      17.7
  Real Estate
   Construction      --         --         --           --       0.5
   Commercial       2.6        1.6        2.8         16.1      14.3
   Residential      1.3        1.7        1.5          5.5       5.2
  Installment       5.4        4.2        4.6         15.0      14.5
  Leases            0.6         --        0.2          0.7       0.4
----------------------------------------------------------------------
   Total
    Domestic       13.3       16.4       17.1        125.1      52.6
  Foreign           4.1        3.9        9.5         18.0      26.6
----------------------------------------------------------------------
Total
 Charged-Off       17.4       20.3       26.6        143.1      79.2
Recoveries on
 Loans
 Previously
 Charged-Off
  Commercial
  and
  Industrial        1.1        4.3        2.2          8.1       5.1
  Real Estate
   Construction      --         --         --           --        --
   Commercial       1.3        0.8        0.1          2.4       0.3
   Residential      0.2        0.3        0.3          0.7       1.0
  Installment       2.2        1.6        1.7          5.6       5.3
  Leases             --        0.1         --          0.2        --
----------------------------------------------------------------------
   Total
    Domestic        4.8        7.1        4.3         17.0      11.7
  Foreign          10.2        6.3        2.7         19.1       3.7
----------------------------------------------------------------------
Total Recoveries   15.0       13.4        7.0         36.1      15.4
----------------------------------------------------------------------
Net Charge-Offs    (2.4)      (6.9)     (19.6)      (107.0)    (63.8)
Provision for
 Loan Losses        0.9        6.4       20.2         59.8     117.1
Allowance Related
 to Disposition   (16.4)        --         --        (16.4)       --
Other Net
 Additions
 (Reductions)(1)    0.6        0.5       (2.2)        (0.1)     (2.5)
----------------------------------------------------------------------
Balance at
 End of
 Period       $   182.5  $   199.8  $   245.0    $   182.5  $   245.0
======================================================================
Average Loans
 Outstanding  $ 7,271.9  $ 8,047.8  $ 9,510.1    $ 8,120.6  $ 9,463.3
----------------------------------------------------------------------
Ratio of Net
 Charge-Offs
 to Average
 Loans
 Outstanding
 (annualized)      0.13%      0.34%      0.82%        1.76%      0.90%
----------------------------------------------------------------------
Ratio of
 Allowance
 to Loans
 Outstanding       2.70%      2.62%      2.62%        2.70%      2.62%
----------------------------------------------------------------------

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



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

                                 Allocated
                   -------------------------------------
                   Restructuring
                     and Non-
                    Recurring    Divesting    Continuing   Reported
                     Impact      Businesses   Businesses   Amounts
----------------------------------------------------------------------

Net Revenue       $     52       $     31     $    143     $    226
Non-Interest
 Expense                 3             30           90          123
                  ----------------------------------------------------
                        49              1           53          103
Provision for
 Loan Losses            --             (5)           6            1
                  ----------------------------------------------------
Income Before
 Income Taxes           49              6           47          102
Provision for
 Income Taxes           49              4           18           71
                  ----------------------------------------------------
    Net Income    $     (0)      $      2     $     29     $     31
                  ====================================================
    Earnings Per
    Share-Diluted $ (0.005)      $  0.026     $  0.348     $  0.369
                  ====================================================

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

                Reported Amounts       Current Outlook     Previous
              Q1      Q2       Q3      Q4    Full Year     Outlook
----------------------------------------------------------------------

Net Revenue $ 144   $ 142    $ 143   $ 141   $ 570         $ 578

Non-Interest
 Expense       90      92       90      90     362           373
            ----------------------------------------------------------
               54      50       53      51     208           205

Provision
 for
 Loan
 Losses        12       2        6      12      32            35
            ----------------------------------------------------------
Income
 Before
 Income
 Taxes         42      48       47      39     176           170

Provision
 for Income
 Taxes         18      18       18      16      70            68
            ----------------------------------------------------------
  Allocated
  Net
  Income    $  24   $  30    $  29   $  23   $ 106         $ 102
            ==========================================================
  Allocated
  Earnings
  Per Share
  -Diluted  $0.29   $0.36    $0.35   $0.30   $1.30         $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. First quarter amounts have been reclassified.



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

                 Sep. 30    June 30    Mar. 31    Dec. 31   Sept. 30
                  2001       2001       2001       2000       2000
----------------------------------------------------------------------

Balance Sheet
 Totals
Total Assets    $11,944.2  $12,755.5  $13,710.7  $14,013.8  $13,939.9
Net Loans         6,584.1    7,418.6    8,225.2    8,988.9    9,094.3
Deposits          7,399.7    8,108.5    8,815.5    9,080.6    8,820.7
Long-Term Debt      678.4      830.9      882.7      997.2      999.7
Shareholders'
 Equity           1,371.1    1,395.7    1,371.9    1,301.4    1,250.1

Quarterly
 Operating
 Results
Net Interest
 Income         $   111.9  $   116.8  $   125.2  $   132.1  $   132.8
Provision for
 Loan Losses          0.9        6.4       52.5       25.8       20.1
Non-Interest
 Income             113.9       98.4      160.7       70.6       67.0
Non-Interest
 Expense            123.3      161.8      172.6      123.1      124.2
Net Income           31.1       26.7       33.7       32.6       34.6

Basic Earnings
 Per Share      $    0.39  $    0.33  $    0.42  $    0.41  $    0.44
Diluted Earnings
 Per Share      $    0.37  $    0.32  $    0.42  $    0.41  $    0.44

Return on
 Average Assets      1.00%      0.83%      0.99%      0.94%      0.98%
Return on
 Average Equity      8.88%      7.69%     10.42%     10.24%     11.20%
Core Efficiency
 Ratio              69.12%     68.53%     65.62%     60.74%     62.15%

Cash Basis
 Financial
 Data (1)(2)
 Net Income     $    34.4  $    30.4  $    37.6  $    36.2  $    38.7
 Basic Earnings
  Per Share     $    0.43  $    0.38  $    0.47  $    0.46  $    0.49
 Diluted
  Earnings Per
  Share         $    0.41  $    0.37  $    0.46  $    0.45  $    0.49
 Return on
  Average Assets     1.12%      0.95%      1.12%      1.06%      1.12%
 Return on
  Average Equity    11.17%      9.96%     10.42%     13.41%     14.88%
 Core Efficiency
  Ratio             67.21%     66.51%     63.60%     58.78%     60.08%


(1) Excludes the effect of restructuring activities and non-recurring
    transactions.

(2) Excludes the effect of intangibles which include goodwill, core
    deposit and trust intangibles.


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