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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D. C. 20549
 
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2005
  o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 Commission file number 0-7949
 BANCWEST CORPORATION
  Delaware
    

    
    99-0156159(State of incorporation)
    

    
    (I.R.S. Employer Identification No.)
 999 Bishop Street, Honolulu, Hawaii
(Address of principal executive offices)
    
    
    
    96813
(Zip Code)
 Registrants telephone number, including area code: (808) 525-7000
 
 Securities registered pursuant to Section 12(b) of the Act:
  
 Securities registered pursuant to Section 12(g) of the Act:
 
  o o
 o þ
 o þ
 
 Class
    
    OutstandingClass A Common Stock, $0.01 Par Value
    
    106,859,123 Shares




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BANCWEST CORPORATION AND SUBSIDIARIES
 FORM 10-Q
September 30, 2005
 INDEX
 PagePART I. FINANCIAL INFORMATIONItem 1.
    
    Financial Statements(Unaudited)
    
    
    27Consolidated Statements of Income
    
    
    27Consolidated Balance Sheets
    
    
    28Consolidated Statements of Changes in Stockholders Equity and Comprehensive Income
    
    
    29Consolidated Statements of Cash Flows
    
    
    30Notes to Consolidated Financial Statements
    
    
    31Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    2Consolidated Financial Highlights
    
    
    2Forward-Looking Statements
    
    
    3Overview
    
    
    4Critical Accounting Estimates
    
    
    5Financial Overview
    
    
    5Results of Operations
    
    
    6Net Interest Income
    
    
    6Noninterest Income
    
    
    11Noninterest Expense
    
    
    12Income Taxes
    
    
    13Operating Segments
    
    
    14Securities Available For Sale
    
    
    18Loans and Leases
    
    
    18Nonperforming Assets and Restructured Loans
    
    
    19Provision and Allowance for Loan and Lease Losses
    
    
    20Deposits
    
    
    21Capital
    
    
    21Liquidity Management
    
    
    21Recent Accounting Standards
    
    
    23Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    24Item 4.
    
    Controls and Procedures
    
    
    26PART II. OTHER INFORMATIONItem 6.
    
    Exhibits
    
    
    50SIGNATURE
    
    
    
    
    50
  
  1




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##### Table of Contents



BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 
 PART I. FINANCIAL INFORMATION
 
 Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 Three Months Ended September 30,
    
    
    Nine Months Ended September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Earnings:(Dollars in thousands)Interest income
    
    $
    631,654
    
    
    $
    441,769
    
    
    $
    1,783,038
    
    
    $
    1,278,788Interest expense
    
    
    227,991
    
    
    
    111,127
    
    
    
    590,034
    
    
    
    304,860Net interest income
    
    
    403,663
    
    
    
    330,642
    
    
    
    1,193,004
    
    
    
    973,928Provision for loan and lease losses
    
    
    10,680
    
    
    
    10,600
    
    
    
    25,004
    
    
    
    41,365Noninterest income
    
    
    136,841
    
    
    
    104,821
    
    
    
    392,846
    
    
    
    315,368Noninterest expense
    
    
    290,702
    
    
    
    234,496
    
    
    
    866,379
    
    
    
    684,689Income before income taxes
    
    
    239,122
    
    
    
    190,367
    
    
    
    694,467
    
    
    
    563,242Provision for income taxes
    
    
    90,550
    
    
    
    73,141
    
    
    
    260,142
    
    
    
    218,207Net income
    
    $
    148,572
    
    
    $
    117,226
    
    
    $
    434,325
    
    
    $
    345,035Balance Sheet Data Averages:(Dollars in millions)Average total assets
    
    $
    52,958
    
    
    $
    40,581
    
    
    $
    51,715
    
    
    $
    39,425Average securities available for sale at cost
    
    
    9,116
    
    
    
    6,110
    
    
    
    8,786
    
    
    
    5,984Average loans and leases (1)
    
    
    34,427
    
    
    
    27,433
    
    
    
    33,596
    
    
    
    26,710Average deposits
    
    
    35,514
    
    
    
    28,271
    
    
    
    34,845
    
    
    
    27,277Average long-term debt
    
    
    6,509
    
    
    
    5,069
    
    
    
    6,477
    
    
    
    4,660Average stockholders equity
    
    
    6,053
    
    
    
    4,512
    
    
    
    5,921
    
    
    
    4,419Balance Sheet Data At Period End:(Dollars in millions)Total Assets
    
    
    54,637
    
    
    
    41,405
    
    
    
    54,637
    
    
    
    41,405Securities available for sale
    
    
    9,102
    
    
    
    6,168
    
    
    
    9,102
    
    
    
    6,168Loans and leases (1)
    
    
    35,200
    
    
    
    27,887
    
    
    
    35,200
    
    
    
    27,887Deposits
    
    
    35,572
    
    
    
    28,400
    
    
    
    35,572
    
    
    
    28,400Long-term debt
    
    
    6,555
    
    
    
    5,512
    
    
    
    6,555
    
    
    
    5,512Stockholders equity
    
    
    6,116
    
    
    
    4,583
    
    
    
    6,116
    
    
    
    4,583Selected Financial Ratios For The Period Ended:Return on average total assets (ROA)(2)
    
    
    1.11
    %
    
    
    1.15
    %
    
    
    1.12
    %
    
    
    1.17
    %Return on average stockholders equity (ROE)(2)
    
    
    9.74
    
    
    
    10.34
    
    
    
    9.81
    
    
    
    10.43Net interest margin (taxable-equivalent basis)(2)
    
    
    3.61
    
    
    
    3.83
    
    
    
    3.69
    
    
    
    3.89Net loans and leases charged off to average loans and leases (2)
    
    
    0.16
    
    
    
    0.30
    
    
    
    0.17
    
    
    
    0.24Efficiency ratio (3)
    
    
    53.78
    
    
    
    53.85
    
    
    
    54.63
    
    
    
    53.11Average stockholders equity to average total assets
    
    
    11.43
    
    
    
    11.12
    
    
    
    11.45
    
    
    
    11.21At Period End:Allowance for loan and lease losses to total loans and leases
    
    
    1.20
    
    
    
    1.39
    
    
    
    1.20
    
    
    
    1.39Nonperforming assets to total loans and leases and other
real estate owned and repossessed personal property
    
    
    0.41
    
    
    
    0.44
    
    
    
    0.41
    
    
    
    0.44Allowance for loan and lease losses to nonaccruing loans and leases
    
    
    3.28
    x
    
    
    3.69
    x
    
    
    3.28
    x
    
    
    3.69
    xRegulatory Capital Ratios:Leverage Ratio (4):Bank of the West
    
    
    9.31
    %
    
    
    9.55
    %
    
    
    9.31
    %
    
    
    9.55
    %First Hawaiian Bank
    
    
    10.81
    
    
    
    10.36
    
    
    
    10.81
    
    
    
    10.36Tier 1 capital (risk-based):Bank of the West
    
    
    10.80
    
    
    
    10.88
    
    
    
    10.80
    
    
    
    10.88First Hawaiian Bank
    
    
    14.22
    
    
    
    13.75
    
    
    
    14.22
    
    
    
    13.75Total capital (risk-based):Bank of the West
    
    
    12.33
    
    
    
    12.91
    
    
    
    12.33
    
    
    
    12.91First Hawaiian Bank
    
    
    16.35
    
    
    
    16.04
    
    
    
    16.35
    
    
    
    16.04
 
 (1)
    
    Includes loans held for sale.(2)
    
    Annualized.(3)
    
    The efficiency ratio is noninterest expense as a percentage of net interest income
plus noninterest income.(4)
    
    The capital leverage ratios are based on quarterly averages. 2




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BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 
 FORWARD-LOOKING STATEMENTS
  (1)
    
    global, national and local economic and market conditions, specifically with respect to
changes in the United States economy and geopolitical uncertainty;(2)
    
    the level and volatility of interest rates and currency values;(3)
    
    government fiscal and monetary policies;(4)
    
    credit risks inherent in the lending process;(5)
    
    loan and deposit demand in the geographic regions where we conduct business;(6)
    
    the impact of intense competition in the rapidly evolving banking and financial services
business;(7)
    
    extensive federal and state regulation of our businesses, including the effects of current
and pending legislation and regulations;(8)
    
    whether expected revenue enhancements and cost savings are realized within expected time
frames;(9)
    
    matters relating to the integration of our business with that of past and future merger
partners, including the impact of combining these businesses on revenues, expenses, deposit
attrition, customer retention and financial performance;(10)
    
    our reliance on third parties to provide certain critical services, including data
processing;(11)
    
    the proposal or adoption of changes in accounting standards by the Financial Accounting
Standards Board (FASB), the Securities and Exchange Commission (SEC) or other standard setting
bodies;(12)
    
    technological changes;(13)
    
    other risks and uncertainties discussed in this document or detailed from time to time in
other SEC filings that we make; and(14)
    
    managements ability to manage risks that result from these and other factors.
   3




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BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 
 OVERVIEW
 www.bancwestcorp.com
 Acquisitions
 Commercial Federal Corporation Acquisition
    Strategic Initiatives
    4




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BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
      
 CRITICAL ACCOUNTING ESTIMATES
  
 FINANCIAL OVERVIEW
 Income Statement Analysis
 Third quarter 2005 compared with third quarter 2004
  5




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BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 Nine-month period 2005 compared with nine-month period 2004
  Balance Sheet Analysis
   
 RESULTS OF OPERATIONS
 
 Net Interest Income
 Third quarter 2005 compared with third quarter 2004
   Nine-month period 2005 compared with nine-month period 2004
  6




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BancWest Corporation and
Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
  Net Interest Margin
 Third quarter 2005 compared with third quarter 2004
  Nine-month period 2005 compared with nine-month period 2004
  Average Earning Assets
 Third quarter 2005 compared with third quarter 2004
  Nine-month period 2005 compared with nine-month period 2004
  Average Loans and Leases
 Third quarter 2005 compared with third quarter 2004
  7




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BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 Nine-month period 2005 compared with nine-month period 2004
  Average Interest-Bearing Deposits and Liabilities
 Third quarter 2005 compared with third quarter 2004
  Nine-month period 2005 compared with nine-month period 2004
  8




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BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 Table 1: Average Balances, Interest Income and Expense, and Yields and Rates
(Taxable-Equivalent Basis)
  Three Months Ended September 30,2005
    
    
    2004Interest
    
    
    
    
    
    
    
    
    
    
    InterestAverage
    
    
    Income/
    
    
    Yield/
    
    
    Average
    
    
    Income/
    
    
    Yield/Balance
    
    
    Expense
    
    
    Rate(1)
    
    
    Balance
    
    
    Expense
    
    
    Rate(1)(Dollars in thousands)ASSETSEarning assets:Interest-bearing deposits in other banks:Domestic
    
    $
    2,252
    
    
    $
    19
    
    
    
    3.35
    %
    
    $
    5,309
    
    
    $
    10
    
    
    
    0.75
    %Foreign
    
    
    355,113
    
    
    
    3,120
    
    
    
    3.49
    
    
    
    292,917
    
    
    
    1,104
    
    
    
    1.50Total interest-bearing deposits in other banks
    
    
    357,365
    
    
    
    3,139
    
    
    
    3.48
    
    
    
    298,226
    
    
    
    1,114
    
    
    
    1.49Federal funds sold and securitiespurchased under
agreements to resell
    
    
    365,298
    
    
    
    3,278
    
    
    
    3.56
    
    
    
    397,466
    
    
    
    1,535
    
    
    
    1.54Trading assets
    
    
    2,896
    
    
    
    19
    
    
    
    2.60
    
    
    
    3,757
    
    
    
    62
    
    
    
    6.57Securities
available for sale (2):Taxable
    
    
    9,048,015
    
    
    
    84,196
    
    
    
    3.69
    
    
    
    6,102,353
    
    
    
    52,755
    
    
    
    3.44Exempt from Federal income taxes
    
    
    68,468
    
    
    
    972
    
    
    
    5.63
    
    
    
    7,492
    
    
    
    134
    
    
    
    7.12Total securities available for sale
    
    
    9,116,483
    
    
    
    85,168
    
    
    
    3.71
    
    
    
    6,109,845
    
    
    
    52,889
    
    
    
    3.44Loans and leases (3)(4):Domestic
    
    
    34,043,952
    
    
    
    530,897
    
    
    
    6.19
    
    
    
    27,062,012
    
    
    
    378,046
    
    
    
    5.56Foreign
    
    
    383,229
    
    
    
    8,159
    
    
    
    8.45
    
    
    
    370,713
    
    
    
    6,198
    
    
    
    6.65Total loans and leases
    
    
    34,427,181
    
    
    
    539,056
    
    
    
    6.21
    
    
    
    27,432,725
    
    
    
    384,244
    
    
    
    5.57Other interest earning assets
    
    
    247,269
    
    
    
    2,346
    
    
    
    3.76
    
    
    
    170,493
    
    
    
    2,142
    
    
    
    5.00Total earning assets
    
    
    44,516,492
    
    
    
    633,006
    
    
    
    5.64
    %
    
    
    34,412,512
    
    
    
    441,986
    
    
    
    5.11
    %Noninterest-bearing assets:Cash and due from banks
    
    
    1,835,956
    
    
    
    
    
    
    
    
    
    
    
    1,408,039Premises and equipment
    
    
    684,330
    
    
    
    
    
    
    
    
    
    
    
    524,795Other intangibles
    
    
    246,604
    
    
    
    
    
    
    
    
    
    
    
    172,842Goodwill
    
    
    4,315,481
    
    
    
    
    
    
    
    
    
    
    
    3,229,771Other assets
    
    
    1,358,878
    
    
    
    
    
    
    
    
    
    
    
    833,275Total noninterest-bearing assets
    
    
    8,441,249
    
    
    
    
    
    
    
    
    
    
    
    6,168,722Total assets
    
    $
    52,957,741
    
    
    
    
    
    
    
    
    
    
    $
    40,581,234LIABILITIES AND STOCKHOLDERS EQUITYInterest-bearing deposits and liabilities:Deposits:Domestic:Interest-bearing demand
    
    $
    288,739
    
    
    $
    219
    
    
    
    0.30
    %
    
    $
    313,754
    
    
    $
    62
    
    
    
    0.08
    %Savings
    
    
    12,605,446
    
    
    
    31,503
    
    
    
    0.99
    
    
    
    11,236,547
    
    
    
    16,560
    
    
    
    0.59Time
    
    
    10,614,366
    
    
    
    77,689
    
    
    
    2.90
    
    
    
    7,283,932
    
    
    
    30,755
    
    
    
    1.68Foreign
    
    
    1,534,403
    
    
    
    10,954
    
    
    
    2.83
    
    
    
    1,270,598
    
    
    
    3,812
    
    
    
    1.19Total interest-bearing deposits
    
    
    25,042,954
    
    
    
    120,365
    
    
    
    1.91
    
    
    
    20,104,831
    
    
    
    51,189
    
    
    
    1.01Short-term borrowings
    
    
    3,823,456
    
    
    
    32,000
    
    
    
    3.32
    
    
    
    1,824,580
    
    
    
    6,331
    
    
    
    1.38Long-term debt
    
    
    6,509,137
    
    
    
    75,626
    
    
    
    4.61
    
    
    
    5,069,266
    
    
    
    53,607
    
    
    
    4.21Total interest-bearing deposits and liabilities
    
    
    35,375,547
    
    
    
    227,991
    
    
    
    2.56
    
    
    
    26,998,677
    
    
    
    111,127
    
    
    
    1.64Interest rate spread
    
    
    
    
    
    
    
    
    
    
    3.08
    %
    
    
    
    
    
    
    
    
    
    
    3.47
    %Noninterest-bearing deposits
    
    
    10,471,206
    
    
    
    
    
    
    
    
    
    
    
    8,166,003Other liabilities
    
    
    1,057,987
    
    
    
    
    
    
    
    
    
    
    
    904,437Total liabilities
    
    
    46,904,740
    
    
    
    
    
    
    
    
    
    
    
    36,069,117Stockholders equity
    
    
    6,053,001
    
    
    
    
    
    
    
    
    
    
    
    4,512,117Total liabilities and stockholders equity
    
    $
    52,957,741
    
    
    
    
    
    
    
    
    
    
    $
    40,581,234Impact of noninterest-bearing sources
    
    
    
    
    
    
    
    
    
    
    0.53
    %
    
    
    
    
    
    
    
    
    
    
    0.36
    %Net interest income and margin on total earning assets
    
    
    
    
    
    
    405,015
    
    
    
    3.61
    %
    
    
    
    
    
    
    330,859
    
    
    
    3.83
    %Tax equivalent adjustment
    
    
    
    
    
    
    1,352
    
    
    
    
    
    
    
    
    
    
    
    217Net interest income
    
    
    
    
    
    $
    403,663
    
    
    
    
    
    
    
    
    
    
    $
    330,642
 
 (1)
    
    Annualized.(2)
    
    Average debt securities available for sale were computed based on amortized costs, excluding the effects of SFAS No. 115 adjustments.(3)
    
    Nonaccrual loans and leases, and loans held for sale have been included in the computations of average loan and lease balances.(4)
    
    Interest income for loans and leases included loan fees of $8.2 million and $11.1 million for the three months ended September 30, 2005 and 2004, respectively. 9




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BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 Nine Months Ended September 30,2005
    
    
    2004Interest
    
    
    
    
    
    
    
    
    
    
    InterestAverage
    
    
    Income/
    
    
    Yield/
    
    
    Average
    
    
    Income/
    
    
    Yield/Balance
    
    
    Expense
    
    
    Rate(1)
    
    
    Balance
    
    
    Expense
    
    
    Rate(1)(Dollars in thousands)ASSETSEarning assets:Interest-bearing deposits in other banks:Domestic
    
    $
    4,413
    
    
    $
    55
    
    
    
    1.67
    %
    
    $
    6,156
    
    
    $
    33
    
    
    
    0.72
    %Foreign
    
    
    345,661
    
    
    
    7,955
    
    
    
    3.08
    
    
    
    274,851
    
    
    
    2,567
    
    
    
    1.25Total interest-bearing deposits in other banks
    
    
    350,074
    
    
    
    8,010
    
    
    
    3.06
    
    
    
    281,007
    
    
    
    2,600
    
    
    
    1.24Federal funds sold and securities purchased under
agreements to resell
    
    
    434,387
    
    
    
    9,531
    
    
    
    2.93
    
    
    
    284,970
    
    
    
    2,714
    
    
    
    1.27Trading assets
    
    
    4,274
    
    
    
    50
    
    
    
    1.56
    
    
    
    8,816
    
    
    
    48
    
    
    
    0.73Securities available for sale (2):Taxable
    
    
    8,726,417
    
    
    
    239,932
    
    
    
    3.68
    
    
    
    5,976,179
    
    
    
    154,063
    
    
    
    3.44Exempt from Federal income taxes
    
    
    59,289
    
    
    
    2,425
    
    
    
    5.47
    
    
    
    7,473
    
    
    
    403
    
    
    
    7.20Total securities available for sale
    
    
    8,785,706
    
    
    
    242,357
    
    
    
    3.69
    
    
    
    5,983,652
    
    
    
    154,466
    
    
    
    3.45Loans and leases (3)(4):Domestic
    
    
    33,215,433
    
    
    
    1,499,640
    
    
    
    6.04
    
    
    
    26,352,117
    
    
    
    1,096,603
    
    
    
    5.56Foreign
    
    
    380,393
    
    
    
    20,811
    
    
    
    7.31
    
    
    
    357,646
    
    
    
    17,774
    
    
    
    6.64Total loans and leases
    
    
    33,595,826
    
    
    
    1,520,451
    
    
    
    6.05
    
    
    
    26,709,763
    
    
    
    1,114,377
    
    
    
    5.57Other interest earning assets
    
    
    232,854
    
    
    
    6,564
    
    
    
    3.77
    
    
    
    161,660
    
    
    
    5,278
    
    
    
    4.36Total earning assets
    
    
    43,403,121
    
    
    
    1,786,963
    
    
    
    5.50
    %
    
    
    33,429,868
    
    
    
    1,279,483
    
    
    
    5.11
    %Noninterest-bearing assets:Cash and due from banks
    
    
    1,789,419
    
    
    
    
    
    
    
    
    
    
    
    1,408,098Premises and equipment
    
    
    683,650
    
    
    
    
    
    
    
    
    
    
    
    526,790Other intangibles
    
    
    253,386
    
    
    
    
    
    
    
    
    
    
    
    178,565Goodwill
    
    
    4,315,461
    
    
    
    
    
    
    
    
    
    
    
    3,228,986Other assets
    
    
    1,269,511
    
    
    
    
    
    
    
    
    
    
    
    652,329Total noninterest-bearing assets
    
    
    8,311,427
    
    
    
    
    
    
    
    
    
    
    
    5,994,768Total assets
    
    $
    51,714,548
    
    
    
    
    
    
    
    
    
    
    $
    39,424,636LIABILITIES AND STOCKHOLDERS EQUITYInterest-bearing deposits and liabilities:Deposits:Domestic:Interest-bearing demand
    
    $
    337,045
    
    
    $
    1,101
    
    
    
    0.44
    %
    
    $
    310,187
    
    
    $
    200
    
    
    
    0.09
    %Savings
    
    
    12,656,431
    
    
    
    81,089
    
    
    
    0.86
    
    
    
    11,031,784
    
    
    
    48,025
    
    
    
    0.58Time
    
    
    10,137,664
    
    
    
    195,644
    
    
    
    2.58
    
    
    
    6,907,810
    
    
    
    81,378
    
    
    
    1.57Foreign
    
    
    1,487,476
    
    
    
    26,787
    
    
    
    2.41
    
    
    
    1,127,979
    
    
    
    8,611
    
    
    
    1.02Total interest-bearing deposits
    
    
    24,618,616
    
    
    
    304,621
    
    
    
    1.65
    
    
    
    19,377,760
    
    
    
    138,214
    
    
    
    0.95Short-term borrowings
    
    
    3,403,002
    
    
    
    74,371
    
    
    
    2.92
    
    
    
    2,046,629
    
    
    
    17,310
    
    
    
    1.13Long-term debt
    
    
    6,477,001
    
    
    
    211,042
    
    
    
    4.36
    
    
    
    4,659,747
    
    
    
    149,336
    
    
    
    4.28Total interest-bearing deposits and liabilities
    
    
    34,498,619
    
    
    
    590,034
    
    
    
    2.29
    
    
    
    26,084,136
    
    
    
    304,860
    
    
    
    1.56Interest rate spread
    
    
    
    
    
    
    
    
    
    
    3.21
    %
    
    
    
    
    
    
    
    
    
    
    3.55
    %Noninterest-bearing deposits
    
    
    10,226,065
    
    
    
    
    
    
    
    
    
    
    
    7,899,274Other liabilities
    
    
    1,069,100
    
    
    
    
    
    
    
    
    
    
    
    1,022,688Total liabilities
    
    
    45,793,784
    
    
    
    
    
    
    
    
    
    
    
    35,006,098Stockholders equity
    
    
    5,920,764
    
    
    
    
    
    
    
    
    
    
    
    4,418,538Total liabilities and stockholders equity
    
    $
    51,714,548
    
    
    
    
    
    
    
    
    
    
    $
    39,424,636Impact of noninterest-bearing sources
    
    
    
    
    
    
    
    
    
    
    0.48
    %
    
    
    
    
    
    
    
    
    
    
    0.34
    %Net interest income and margin on total earning assets
    
    
    
    
    
    
    1,196,929
    
    
    
    3.69
    %
    
    
    
    
    
    
    974,623
    
    
    
    3.89
    %Tax equivalent adjustment
    
    
    
    
    
    
    3,925
    
    
    
    
    
    
    
    
    
    
    
    695Net interest income
    
    
    
    
    
    $
    1,193,004
    
    
    
    
    
    
    
    
    
    
    $
    973,928
 
 (1)
    
    Annualized.(2)
    
    Average debt securities available for sale were computed based on amortized costs, excluding the effects of SFAS No. 115 adjustments.(3)
    
    Nonaccrual loans and leases, and loans held for sale have been included in the computations of average loan and lease balances.(4)
    
    Interest income for loans and leases included loan fees of $23.6 million and $32.6 million for the nine months ended September 30, 2005 and 2004, respectively. 10




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BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 
 Noninterest Income
 Three Months Ended September 30,
    
    
    Change2005
    
    
    2004
    
    
    $
    
    
    %(Dollars in thousands)Service charges on deposit accounts
    
    $
    51,787
    
    
    $
    38,948
    
    
    $
    12,839
    
    
    
    33.0
    %Trust and investment services income
    
    
    11,364
    
    
    
    9,654
    
    
    
    1,710
    
    
    
    17.7Other service charges and fees
    
    
    50,784
    
    
    
    37,757
    
    
    
    13,027
    
    
    
    34.5Net gains on sales of securities available for sale
    
    
    111
    
    
    
    
    
    
    
    111
    
    
    
    Vehicle and equipment operating lease income
    
    
    5,375
    
    
    
    6,112
    
    
    
    (737
    )
    
    
    (12.1
    )Other
    
    
    17,420
    
    
    
    12,350
    
    
    
    5,070
    
    
    
    41.1Total noninterest income
    
    $
    136,841
    
    
    $
    104,821
    
    
    $
    32,020
    
    
    
    30.5
    %
 Nine Months Ended September 30,
    
    
    Change2005
    
    
    2004
    
    
    $
    
    
    %(Dollars in thousands)Service charges on deposit accounts
    
    $
    143,440
    
    
    $
    120,302
    
    
    $
    23,138
    
    
    
    19.2
    %Trust and investment services income
    
    
    36,203
    
    
    
    30,010
    
    
    
    6,193
    
    
    
    20.6Other service charges and fees
    
    
    145,033
    
    
    
    111,802
    
    
    
    33,231
    
    
    
    29.7Net gains on sales of securities available for sale
    
    
    526
    
    
    
    1,058
    
    
    
    (532
    )
    
    
    (50.3
    )Vehicle and equipment operating lease income
    
    
    16,728
    
    
    
    11,181
    
    
    
    5,547
    
    
    
    49.6Other
    
    
    50,916
    
    
    
    41,015
    
    
    
    9,901
    
    
    
    24.1Total noninterest income
    
    $
    392,846
    
    
    $
    315,368
    
    
    $
    77,478
    
    
    
    24.6
    %
 Third quarter 2005 compared with third quarter 2004
    Nine-month period 2005 compared with nine-month period 2004
      11




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BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 
 Noninterest Expense
 Three Months Ended September 30,
    
    
    Change2005
    
    
    2004
    
    
    $
    
    
    %(Dollars in thousands)Personnel:Salaries and wages
    
    $
    109,006
    
    
    $
    87,575
    
    
    $
    21,431
    
    
    
    24.5
    %Employee benefits
    
    
    42,224
    
    
    
    33,614
    
    
    
    8,610
    
    
    
    25.6Total personnel expense
    
    
    151,230
    
    
    
    121,189
    
    
    
    30,041
    
    
    
    24.8Occupancy
    
    
    28,016
    
    
    
    22,602
    
    
    
    5,414
    
    
    
    24.0Outside services
    
    
    27,048
    
    
    
    20,868
    
    
    
    6,180
    
    
    
    29.6Intangible amortization
    
    
    9,983
    
    
    
    5,763
    
    
    
    4,220
    
    
    
    73.2Equipment
    
    
    15,378
    
    
    
    11,911
    
    
    
    3,467
    
    
    
    29.1Depreciation  vehicle and equipment operating leases
    
    
    4,678
    
    
    
    5,260
    
    
    
    (582
    )
    
    
    (11.1
    )Restructuring and integration costs
    
    
    3,601
    
    
    
    5,761
    
    
    
    (2,160
    )
    
    
    (37.5
    )Stationery and supplies
    
    
    7,534
    
    
    
    6,032
    
    
    
    1,502
    
    
    
    24.9Advertising and promotions
    
    
    7,645
    
    
    
    6,535
    
    
    
    1,110
    
    
    
    17.0Other
    
    
    35,589
    
    
    
    28,575
    
    
    
    7,014
    
    
    
    24.5Total noninterest expense
    
    $
    290,702
    
    
    $
    234,496
    
    
    $
    56,206
    
    
    
    24.0
    %
 Nine Months Ended September 30,
    
    
    Change2005
    
    
    2004
    
    
    $
    
    
    %(Dollars in thousands)Personnel:Salaries and wages
    
    $
    319,483
    
    
    $
    254,462
    
    
    $
    65,021
    
    
    
    25.6
    %Employee benefits
    
    
    132,580
    
    
    
    104,460
    
    
    
    28,120
    
    
    
    26.9Total personnel expense
    
    
    452,063
    
    
    
    358,922
    
    
    
    93,141
    
    
    
    26.0Occupancy
    
    
    84,781
    
    
    
    66,007
    
    
    
    18,774
    
    
    
    28.4Outside services
    
    
    78,127
    
    
    
    62,487
    
    
    
    15,640
    
    
    
    25.0Intangible amortization
    
    
    29,945
    
    
    
    17,290
    
    
    
    12,655
    
    
    
    73.2Equipment
    
    
    45,052
    
    
    
    35,366
    
    
    
    9,686
    
    
    
    27.4Depreciation
 vehicle and equipment operating leases
    
    
    14,527
    
    
    
    10,164
    
    
    
    4,363
    
    
    
    42.9Restructuring and integration costs
    
    
    8,951
    
    
    
    8,515
    
    
    
    436
    
    
    
    5.1Stationery and supplies
    
    
    23,547
    
    
    
    18,351
    
    
    
    5,196
    
    
    
    28.3Advertising and promotions
    
    
    22,465
    
    
    
    19,314
    
    
    
    3,151
    
    
    
    16.3Other
    
    
    106,921
    
    
    
    88,273
    
    
    
    18,648
    
    
    
    21.1Total noninterest expense
    
    $
    866,379
    
    
    $
    684,689
    
    
    $
    181,690
    
    
    
    26.5
    %
 Third quarter 2005 compared with third quarter 2004
     12




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##### Table of Contents



BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
   Nine-month period 2005 compared with nine-month period 2004
         
 INCOME TAXES
   13




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##### Table of Contents



BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 
 OPERATING SEGMENTS
  Bank of the West
 Third quarter 2005 compared with third quarter 2004
   Nine-month period 2005 compared with nine-month period 2004
   Regional Banking
 Third quarter 2005 compared with third quarter 2004
    14




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##### Table of Contents



BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 Nine-month period 2005 as compared with nine-month period 2004
    Commercial Banking
 Third quarter 2005 compared with third quarter 2004
    Nine-month period 2005 as compared with nine-month period 2004
    15




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##### Table of Contents



BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 Consumer Finance
 Third quarter 2005 compared with third quarter 2004
   Nine-month period 2005 as compared with nine-month period 2004
   First Hawaiian Bank
 Third quarter 2005 compared with third quarter 2004
   Nine-month period 2005 compared with nine-month period 2004
   16




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##### Table of Contents



BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 Retail Banking
 Third quarter 2005 compared with third quarter 2004
   Nine-month period 2005 as compared with nine-month period 2004
   Consumer Finance
 Third quarter 2005 compared with third quarter 2004
   Nine-month period 2005 as compared with nine-month period 2004
   17




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##### Table of Contents



BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 Commercial Banking
 Third quarter 2005 compared with third quarter 2004
   Nine-month period 2005 as compared with nine-month period 2004
   Wealth Management
 Third quarter 2005 compared with third quarter 2004
  Nine-month period 2005 as compared with nine-month period 2004
  
 SECURITIES AVAILABLE FOR SALE
   
    
    Support its need for liquidity to fund loans or to meet unexpected deposit runoff.
Liquidity can be met by having investments with relatively short maturities and/or a high
degree of marketability.
    
    Act as a vehicle to make meaningful shifts in the Companys overall interest rate risk profile.
    
    Provide collateral to secure the Companys public funds-taking activities.
    
    Provide the maximum level of after-tax earnings consistent with the safety factors of
quality, maturity, liquidity and risk diversification.
 
 LOANS AND LEASES
  18




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##### Table of Contents



BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
   
 NONPERFORMING ASSETS AND RESTRUCTURED LOANS
  September 30, 2005
    
    
    December 31, 2004
    
    
    September 30, 2004(Dollars in thousands)Nonperforming Assets:Nonaccrual:Commercial, financial and agricultural
    
    $
    53,718
    
    
    $
    51,793
    
    
    $
    42,929Real estate:Commercial
    
    
    45,173
    
    
    
    47,385
    
    
    
    41,976Construction
    
    
    8,302
    
    
    
    2,386
    
    
    
    Residential
    
    
    8,010
    
    
    
    6,862
    
    
    
    5,987Total real estate loans
    
    
    61,485
    
    
    
    56,633
    
    
    
    47,963Consumer
    
    
    3,376
    
    
    
    4,477
    
    
    
    2,659Lease financing
    
    
    6,591
    
    
    
    8,078
    
    
    
    6,410Foreign
    
    
    2,994
    
    
    
    4,138
    
    
    
    4,703Total nonaccrual loans and leases
    
    
    128,164
    
    
    
    125,119
    
    
    
    104,664Other real estate owned and repossessed personal property
    
    
    14,284
    
    
    
    21,653
    
    
    
    17,235Total nonperforming assets
    
    $
    142,448
    
    
    $
    146,772
    
    
    $
    121,899Past due loans and leases(1):Commercial, financial and agricultural
    
    $
    20,740
    
    
    $
    6,140
    
    
    $
    18,647Real estate:Commercial
    
    
    3,633
    
    
    
    2,119
    
    
    
    435Construction
    
    
    7,088
    
    
    
    506
    
    
    
    Residential
    
    
    2,398
    
    
    
    1,112
    
    
    
    849Total real estate loans
    
    
    13,119
    
    
    
    3,737
    
    
    
    1,284Consumer
    
    
    2,109
    
    
    
    2,243
    
    
    
    2,246Lease financing
    
    
    
    
    
    
    79
    
    
    
    Foreign
    
    
    705
    
    
    
    216
    
    
    
    700Total past due loans and leases
    
    $
    36,673
    
    
    $
    12,415
    
    
    $
    22,877Accruing Restructured Loans and leases:Commercial, financial and agricultural
    
    
    
    
    
    
    36
    
    
    
    41Commercial real estate
    
    
    394
    
    
    
    429
    
    
    
    432Total accruing restructured loans and leases
    
    $
    394
    
    
    $
    465
    
    
    $
    473Nonperforming assets to total loans and leases and other real estate owned and
repossessed personal property (end of period):Excluding past due loans and leases
    
    
    0.41
    %
    
    
    0.45
    %
    
    
    0.44
    %Including past due loans and leases
    
    
    0.51
    
    
    
    0.49
    
    
    
    0.52Nonperforming assets to total assets (end of period):Excluding past due loans and leases
    
    
    0.26
    
    
    
    0.29
    
    
    
    0.29Including past due loans and leases
    
    
    0.33
    
    
    
    0.32
    
    
    
    0.35
 
 (1)
    
    Represents loans and leases which are past due 90 days or more as to principal
or interest, are still accruing interest, are adequately collateralized and in the process of
collection. 19




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##### Table of Contents



BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
       
 PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES
   
    
    Setting Underwriting and Grading Standards.Our loan grading system uses ten different
risk categories where 1 is no risk and 10 is a loss. We continue efforts to increase our
exposure to customers in the stronger credit categories. The cost of credit risk is an
integral part of the pricing and evaluation of credit decisions and the setting of portfolio
targets.
 20




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##### Table of Contents



BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 
    
    Diversification.We actively manage our credit portfolio to avoid excessive
concentrations by obligor, risk grade, industry, product and geographic location. In
addition, we seek to reduce our exposure to concentrations by actively participating
portions of our commercial and commercial real estate loans to other banks.
    
    Risk Mitigation.We manage our exposure to higher risk areas through application of
prudent underwriting policies, close monitoring of asset quality and actions to reduce
exposures to troubled borrowers.
    
    Emphasis on Consumer Lending.Consumer loans represent our single largest category of
loans and leases. We use formula-based approaches to calculate appropriate reserve levels
that reflect historical loss experience. We generally do not participate in subprime lending
activities. We also seek to reduce our credit exposures where feasible by obtaining
third-party insurance or similar protections. For example, in our vehicle lease portfolio
(which represents approximately 30.9% of our lease financing portfolio and 5.6% of our
combined lease financing and consumer loans at September 30, 2005), we obtain third-party
insurance for the estimated residual value of the leased vehicle, and set aside reserves to
cover the uninsured portion.
   Gulf State Hurricanes
  
 DEPOSITS
  
 CAPITAL
  
 LIQUIDITY MANAGEMENT
  21




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##### Table of Contents



BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
     September 30,(Dollars in millions)
    
    2005
    
    
    2004Federal Reserve Discount Window
    
    $
    694
    
    
    $
    626Federal Home Loan Banks
    
    
    966
    
    
    
    1,291Securities Available for Repurchase Agreements
    
    
    4,126
    
    
    
    3,225Total
    
    $
    5,786
    
    
    $
    5,142
      Bank of the West/First Hawaiian BankShort-Term Deposit
    
    Long-Term DepositMoodys
    
    P-1
    
    Aa3S & P
    
    A-1
    
    A+Fitch, Inc.
    
    F1+
    
    AA-
 22




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##### Table of Contents



BancWest Corporation and Subsidiaries  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS
 
 RECENT ACCOUNTING STANDARDS
  The Meaning of Other-Than-Temporary
Impairment and Its Application to Certain Investments. The Meaning of Other-Than-Temporary
Impairment and Its Application to Certain Investments.
 Accounting Changes and Error Corrections.
 Exchanges of Nonmonetary Assets, an
Amendment of APB Opinion No. 29, Accounting for Nonmonetary Transactions
 Accounting for Share-Based Payment. Accounting for Stock Issued to Employees Accounting for Stock-Based
Compensation
 23




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##### Table of Contents



BancWest Corporation and Subsidiaries  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
 Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
 Interest Rate Risk Measurement and Management
       +3%
    
    
    +2%
    
    
    +1%
    
    
    Flat
    
    
    -1%
    
    
    -2%(Dollars in millions)Net interest income
    
    $
    1,631.4
    
    
    $
    1,654.1
    
    
    $
    1,670.0
    
    
    $
    1,671.1
    
    
    $
    1,665.5
    
    
    $
    1,638.7Difference from flat
    
    
    (39.7
    )
    
    
    (17.0
    )
    
    
    (1.1
    )
    
    
    
    
    
    
    (5.6
    )
    
    
    (32.4
    )% variance
    
    
    (2.4
    )%
    
    
    (1.0
    )%
    
    
    (0.1
    )%
    
    
    
    
    
    
    (0.3
    )%
    
    
    (1.9
    )%
  24




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##### Table of Contents



BancWest Corporation and Subsidiaries  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 Significant Assumptions Utilized and Inherent Limitations
   Interest Rate Trading Derivatives
  September 30, 2005Gross
    
    
    
    
    
    Expected MaturityNet Fair
    
    Positive
    
    Notional
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    AfterInterest Rate Contracts
    
    Value
    
    Value
    
    Amount
    
    2005
    
    2006
    
    2007
    
    2008
    
    2009
    
    2009(Dollars in thousands)Pay-Fixed Swaps:Contractual Maturities
    
    $
    1,856
    
    
    $
    9,281
    
    
    $
    924,000
    
    
    $
    56,011
    
    
    $
    22,460
    
    
    $
    38,104
    
    
    $
    103,984
    
    
    $
    121,703
    
    
    $
    581,738Weighted Avg. Pay Rates
    
    
    
    
    
    
    
    
    
    
    4.99
    %
    
    
    2.77
    %
    
    
    4.22
    %
    
    
    4.67
    %
    
    
    5.54
    %
    
    
    5.54
    %
    
    
    5.05
    %Weighted Avg. Receive Rates
    
    
    
    
    
    
    
    
    
    
    4.31
    %
    
    
    3.68
    %
    
    
    3.89
    %
    
    
    4.08
    %
    
    
    5.57
    %
    
    
    3.83
    %
    
    
    4.28
    %Receive-Fixed Swaps:Contractual Maturities
    
    
    10,367
    
    
    
    14,795
    
    
    $
    924,000
    
    
    $
    56,095
    
    
    $
    22,376
    
    
    $
    38,104
    
    
    $
    103,984
    
    
    $
    121,703
    
    
    $
    581,738Weighted Avg. Pay Rates
    
    
    
    
    
    
    
    
    
    
    5.13
    %
    
    
    2.93
    %
    
    
    4.44
    %
    
    
    4.97
    %
    
    
    5.79
    %
    
    
    4.63
    %
    
    
    5.36
    %Weighted Avg. Receive Rates
    
    
    
    
    
    
    
    
    
    
    4.32
    %
    
    
    3.69
    %
    
    
    3.91
    %
    
    
    4.11
    %
    
    
    5.57
    %
    
    
    3.84
    %
    
    
    4.28
    %Pay-Fixed Swaps(Forward Value Dated):Contractual Maturities
    
    
    (222
    )
    
    
    62
    
    
    $
    17,565
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    17,565Weighted Avg. Pay Rates
    
    
    
    
    
    
    
    
    
    
    5.68
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5.68
    %Weighted Avg. Receive
Rates(1)
    
    
    
    
    
    
    
    
    
    NA
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    NAReceive-Fixed Swaps(Forward Value Dated):Contractual Maturities
    
    
    545
    
    
    
    545
    
    
    $
    17,565
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    17,565Weighted
Avg. Pay Rates
(1)
    
    
    
    
    
    
    
    
    
    NA
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    NAWeighted Avg. Receive Rates
    
    
    
    
    
    
    
    
    
    
    6.16
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6.16
    %Caps/Collars:Contractual Maturities
    
    
    
    
    
    
    207
    
    
    $
    70,586
    
    
    $
    13,450
    
    
    
    
    
    
    $
    50,000
    
    
    $
    3,807
    
    
    $
    1,350
    
    
    $
    1,979Weighted Avg. Strike Rates
    
    
    
    
    
    
    
    
    
    
    4.94
    %
    
    
    5.00
    %
    
    
    
    
    
    
    4.90
    
    
    
    4.50
    %
    
    
    4.50
    %
    
    
    6.83
    %Weighted Floor Rates
    
    
    
    
    
    
    
    
    
    
    4.77
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4.77
    %Total interest rate contracts
held for trading purposes
    
    $
    12,546
    
    
    $
    24,890
    
    
    $
    1,953,716
 
 (1)
    
    Rates will be assigned at maturity date. 25




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##### Table of Contents



BancWest Corporation and Subsidiaries  CONTROLS AND PROCEDURES
 
 Item 4.
    
    Controls and Procedures
   26




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##### Table of Contents



BancWest Corporation and Subsidiaries
 
 CONSOLIDATED STATEMENTS OF INCOME
 
 Item 1.   Financial Statements
 Three Months Ended September 30,
    
    Nine Months Ended September 30,(Dollars in thousands)
    2005
    
    2004
    
    2005
    
    2004Interest incomeLoans
    
    $
    504,269
    
    
    $
    356,804
    
    
    $
    1,428,389
    
    
    $
    1,026,419Lease financing
    
    
    33,723
    
    
    
    27,344
    
    
    
    88,865
    
    
    
    87,465Securities available for sale
    
    
    84,880
    
    
    
    52,850
    
    
    
    241,630
    
    
    
    154,346Other
    
    
    8,782
    
    
    
    4,771
    
    
    
    24,154
    
    
    
    10,558Total interest income
    
    
    631,654
    
    
    
    441,769
    
    
    
    1,783,038
    
    
    
    1,278,788Interest expenseDeposits
    
    
    120,365
    
    
    
    51,189
    
    
    
    304,621
    
    
    
    138,214Short-term borrowings
    
    
    32,000
    
    
    
    6,331
    
    
    
    74,371
    
    
    
    17,310Long-term debt
    
    
    75,626
    
    
    
    53,607
    
    
    
    211,042
    
    
    
    149,336Total interest expense
    
    
    227,991
    
    
    
    111,127
    
    
    
    590,034
    
    
    
    304,860Net interest income
    
    
    403,663
    
    
    
    330,642
    
    
    
    1,193,004
    
    
    
    973,928Provision for loan and lease losses
    
    
    10,680
    
    
    
    10,600
    
    
    
    25,004
    
    
    
    41,365Net interest income after provision for
loan and lease losses
    
    
    392,983
    
    
    
    320,042
    
    
    
    1,168,000
    
    
    
    932,563Noninterest incomeService charges on deposit accounts
    
    
    51,787
    
    
    
    38,948
    
    
    
    143,440
    
    
    
    120,302Trust and investment services income
    
    
    11,364
    
    
    
    9,654
    
    
    
    36,203
    
    
    
    30,010Other service charges and fees
    
    
    50,784
    
    
    
    37,757
    
    
    
    145,033
    
    
    
    111,802Net gains on securities available for sale
    
    
    111
    
    
    
    
    
    
    
    526
    
    
    
    1,058Vehicle and equipment operating lease income
    
    
    5,375
    
    
    
    6,112
    
    
    
    16,728
    
    
    
    11,181Other
    
    
    17,420
    
    
    
    12,350
    
    
    
    50,916
    
    
    
    41,015Total noninterest income
    
    
    136,841
    
    
    
    104,821
    
    
    
    392,846
    
    
    
    315,368Noninterest expenseSalaries and wages
    
    
    109,006
    
    
    
    87,575
    
    
    
    319,483
    
    
    
    254,462Employee benefits
    
    
    42,224
    
    
    
    33,614
    
    
    
    132,580
    
    
    
    104,460Occupancy
    
    
    28,016
    
    
    
    22,602
    
    
    
    84,781
    
    
    
    66,007Outside services
    
    
    27,048
    
    
    
    20,868
    
    
    
    78,127
    
    
    
    62,487Intangible amortization
    
    
    9,983
    
    
    
    5,763
    
    
    
    29,945
    
    
    
    17,290Equipment
    
    
    15,378
    
    
    
    11,911
    
    
    
    45,052
    
    
    
    35,366Depreciation-vehicle and equipment
operating leases
    
    
    4,678
    
    
    
    5,260
    
    
    
    14,527
    
    
    
    10,164Restructuring and integration costs
    
    
    3,601
    
    
    
    5,761
    
    
    
    8,951
    
    
    
    8,515Stationery and supplies
    
    
    7,534
    
    
    
    6,032
    
    
    
    23,547
    
    
    
    18,351Advertising and promotions
    
    
    7,645
    
    
    
    6,535
    
    
    
    22,465
    
    
    
    19,314Other
    
    
    35,589
    
    
    
    28,575
    
    
    
    106,921
    
    
    
    88,273Total noninterest expense
    
    
    290,702
    
    
    
    234,496
    
    
    
    866,379
    
    
    
    684,689Income before income taxes
    
    
    239,122
    
    
    
    190,367
    
    
    
    694,467
    
    
    
    563,242Provision for income taxes
    
    
    90,550
    
    
    
    73,141
    
    
    
    260,142
    
    
    
    218,207Net income
    
    $
    148,572
    
    
    $
    117,226
    
    
    $
    434,325
    
    
    $
    345,035
 
 27




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##### Table of Contents



BancWest Corporation and Subsidiaries
 
 CONSOLIDATED BALANCE SHEETS
 September 30, 2005
    
    December 31, 2004
    
    September 30, 2004(Dollars in thousands, except share data)AssetsCash and due from banks
    
    $
    2,013,798
    
    
    $
    1,676,056
    
    
    $
    1,432,288Interest-bearing deposits in other banks
    
    
    525,233
    
    
    
    16,531
    
    
    
    398,887Federal funds sold and securities purchased under
agreements to resell
    
    
    798,100
    
    
    
    937,875
    
    
    
    399,000Trading assets
    
    
    1,579
    
    
    
    4,685
    
    
    
    3,535Securities available for sale
    
    
    9,101,691
    
    
    
    7,954,563
    
    
    
    6,167,823Loans held for sale
    
    
    75,003
    
    
    
    71,402
    
    
    
    54,717Loans and leases:Loans and leases
    
    
    35,125,000
    
    
    
    32,688,843
    
    
    
    27,832,082Less allowance for loan and lease losses
    
    
    419,850
    
    
    
    436,391
    
    
    
    386,091Net loans and leases
    
    
    34,705,150
    
    
    
    32,252,452
    
    
    
    27,445,991Vehicle and equipment operating leases, net
    
    
    104,360
    
    
    
    132,539
    
    
    
    140,672Premises and equipment, net
    
    
    681,493
    
    
    
    684,783
    
    
    
    531,565Customers acceptance liability
    
    
    12,261
    
    
    
    12,841
    
    
    
    12,458Other intangibles, net
    
    
    241,722
    
    
    
    272,490
    
    
    
    170,067Goodwill
    
    
    4,315,735
    
    
    
    4,312,800
    
    
    
    3,229,771Other real estate owned and repossessed personal property
    
    
    14,284
    
    
    
    21,653
    
    
    
    17,235Other assets
    
    
    2,046,968
    
    
    
    1,703,356
    
    
    
    1,401,401Total assets
    
    $
    54,637,377
    
    
    $
    50,054,026
    
    
    $
    41,405,410Liabilities and Stockholders EquityDeposits:Interest-bearing
    
    $
    24,774,793
    
    
    $
    23,553,861
    
    
    $
    20,205,130Noninterest-bearing
    
    
    10,797,648
    
    
    
    10,059,918
    
    
    
    8,194,910Total deposits
    
    
    35,572,441
    
    
    
    33,613,779
    
    
    
    28,400,040Federal funds purchased and securities sold under
agreements to repurchase
    
    
    2,745,849
    
    
    
    2,050,344
    
    
    
    1,132,532Short-term borrowings
    
    
    2,641,981
    
    
    
    1,454,845
    
    
    
    713,090Acceptances outstanding
    
    
    12,261
    
    
    
    12,841
    
    
    
    12,458Long-term debt
    
    
    6,554,844
    
    
    
    6,181,040
    
    
    
    5,512,198Other liabilities
    
    
    993,673
    
    
    
    1,011,142
    
    
    
    1,052,057Total liabilities
    
    $
    48,521,049
    
    
    $
    44,323,991
    
    
    $
    36,822,375Stockholders equity:Class A common stock, par value $0.01 per shareAuthorized  150,000,000 sharesIssued and outstanding  106,859,123 shares at
September 30, 2005 and December 31, 2004 and
85,759,123 shares at September 30, 2004
    
    $
    1,069
    
    
    $
    1,069
    
    
    $
    858Additional paid-in capital
    
    
    4,475,134
    
    
    
    4,475,006
    
    
    
    3,420,176Retained earnings
    
    
    1,713,900
    
    
    
    1,279,575
    
    
    
    1,151,233Accumulated other comprehensive income (loss), net
    
    
    (73,775
    )
    
    
    (25,615
    )
    
    
    10,768Total stockholders equity
    
    
    6,116,328
    
    
    
    5,730,035
    
    
    
    4,583,035Total liabilities and stockholders equity
    
    $
    54,637,377
    
    
    $
    50,054,026
    
    
    $
    41,405,410
 
 28




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##### Table of Contents



BancWest Corporation and Subsidiaries
 
 CONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME
 AccumulatedClass A
    
    
    Additional
    
    
    
    
    
    
    OtherCommon Stock
    
    
    Paid-in
    
    
    Retained
    
    
    ComprehensiveShares
    
    
    Amount
    
    
    Capital
    
    
    Earnings
    
    
    Income, net
    
    
    Total(Dollars in thousands)Balance, December 31, 2004
    
    
    106,859,123
    
    
    $
    1,069
    
    
    $
    4,475,006
    
    
    $
    1,279,575
    
    
    $
    (25,615
    )
    
    $
    5,730,035Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    434,325
    
    
    
    
    
    
    
    434,325Unrealized net losses on securities
available for sale arising during the
period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (40,546
    )
    
    
    (40,546
    )Reclassification of net realized gains on
securities available for sale included in
net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (310
    )
    
    
    (310
    )Unrealized net losses on cash flow
derivative hedges arising during the
period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,064
    )
    
    
    (2,064
    )Reclassification of net realized gains on
cash flow derivative hedges included in
net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,240
    )
    
    
    (5,240
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    434,325
    
    
    
    (48,160
    )
    
    
    386,165Other
    
    
    
    
    
    
    
    
    
    
    128
    
    
    
    
    
    
    
    
    
    
    
    128Balance, September 30, 2005
    
    
    106,859,123
    
    
    $
    1,069
    
    
    $
    4,475,134
    
    
    $
    1,713,900
    
    
    $
    (73,775
    )
    
    $
    6,116,328Balance, December 31, 2003
    
    
    85,759,123
    
    
    $
    858
    
    
    $
    3,419,927
    
    
    $
    806,198
    
    
    $
    35,889
    
    
    $
    4,262,872Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    345,035
    
    
    
    
    
    
    
    345,035Unrealized net losses on securities
available for sale arising during the
period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,300
    )
    
    
    (12,300
    )Reclassification of net realized gains on
securities available for sale included in
net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (624
    )
    
    
    (624
    )Unrealized net losses on cash flow
derivative hedges arising during the
period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,101
    )
    
    
    (3,101
    )Reclassification of net realized gains on
cash flow derivative hedges included in
net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,096
    )
    
    
    (9,096
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    345,035
    
    
    
    (25,121
    )
    
    
    319,914Other
    
    
    
    
    
    
    
    
    
    
    249
    
    
    
    
    
    
    
    
    
    
    
    249Balance, September 30, 2004
    
    
    85,759,123
    
    
    $
    858
    
    
    $
    3,420,176
    
    
    $
    1,151,233
    
    
    $
    10,768
    
    
    $
    4,583,035
  29




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##### Table of Contents



BancWest Corporation and Subsidiaries
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 Nine Months Ended September 30,2005
    
    
    2004(Dollars in thousands)Cash flows from operating activities:Net income
    
    $
    434,325
    
    
    $
    345,035Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
    
    
    90,155
    
    
    
    64,817Provision for loan and lease losses
    
    
    25,004
    
    
    
    41,365Net decrease in deferred income taxes
    
    
    (80,972
    )
    
    
    (35,679
    )Net decrease in trading assets
    
    
    3,106
    
    
    
    15,574Net increase in loans held for sale
    
    
    (3,601
    )
    
    
    (3,710
    )Net gains on sales of securities available for sale
    
    
    (526
    )
    
    
    (1,058
    )Net gains on sales of loans
    
    
    (4,307
    )
    
    
    (4,220
    )Net decrease (increase) in interest receivable
    
    
    (19,334
    )
    
    
    7,391Net increase in interest payable
    
    
    74,876
    
    
    
    49,442Net increase in prepaid expense
    
    
    (3,059
    )
    
    
    (10,607
    )Other
    
    
    (34,258
    )
    
    
    (182,711
    )Net cash provided by operating activities
    
    
    481,409
    
    
    
    285,639Cash flows from investing activities:Securities available for sale:Proceeds from prepayments and maturities
    
    
    2,126,354
    
    
    
    1,443,337Proceeds from the sales
    
    
    504,896
    
    
    
    282,394Purchases
    
    
    (3,862,486
    )
    
    
    (2,147,072
    )Proceeds from sales of loans
    
    
    251,860
    
    
    
    249,609Purchases of loans
    
    
    (2,863,791
    )
    
    
    (1,101,665
    )Net decrease (increase) in loans and leases resulting from originations and collections
    
    
    180,297
    
    
    
    (1,260,375
    )Net decrease (increase) in vehicle and equipment operating leases resulting from
originations and collections
    
    
    13,652
    
    
    
    (150,836
    )Purchases of premises and equipment
    
    
    (40,841
    )
    
    
    (40,939
    )Increase in investment in bank-owned life insurance
    
    
    (226,237
    )
    
    
    (200,000
    )Other
    
    
    (80,628
    )
    
    
    (63,570
    )Net cash used in investing activities
    
    
    (3,996,924
    )
    
    
    (2,989,117
    )Cash flows from financing activities:Net increase in deposits
    
    
    1,958,662
    
    
    
    1,996,923Net increase (decrease) in Federal funds purchased and securities sold
under agreements to repurchase
    
    
    695,505
    
    
    
    (42,345
    )Net increase (decrease) in short-term borrowings
    
    
    1,187,136
    
    
    
    (484,719
    )Proceeds from issuance of long-term debt
    
    
    1,613,036
    
    
    
    2,229,391Repayments of long-term debt
    
    
    (1,232,155
    )
    
    
    (937,388
    )Net cash provided by financing activities
    
    
    4,222,184
    
    
    
    2,761,862Net increase in cash and cash equivalents
    
    
    706,669
    
    
    
    58,384Cash and cash equivalents at beginning of period
    
    
    2,630,462
    
    
    
    2,171,791Cash and cash equivalents at end of period
    
    $
    3,337,131
    
    
    $
    2,230,175Supplemental disclosures:Interest paid
    
    $
    515,158
    
    
    $
    255,418Income taxes paid
    
    $
    298,298
    
    
    $
    340,735Supplemental schedule of noncash investing and financing activities:Loans transferred to other real estate owned and repossessed personal property
    
    $
    2,770
    
    
    $
    6,648Loans made to facilitate the sale of other real estate owned
    
    $
    650
    
    
    $
    620
  30




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##### Table of Contents



BancWest Corporation and Subsidiaries
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 1.
    
    Summary of Significant Accounting Policies
 Descriptions of Operations
  Basis of Presentation
     Reclassifications
  Stock-Based Compensation
 Accounting for Stock-Based Compensation Accounting for Stock Issued to Employees
  31




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  WeightedWeighted
    
    
    averageaverage
    
    
    remainingexercise
    
    
    contractual lifeNumber
    
    
    price
    
    
    (in years)Options outstanding as of December 31, 2003
    
    
    275,000
    
    
    $
    39.07
    
    
    
    9.22Granted
    
    
    80,000
    
    
    
    60.45Forfeited
    
    
    (1,972
    )
    
    
    39.07Options outstanding as of September 30, 2004
    
    
    353,028
    
    
    $
    43.91
    
    
    
    8.70Options outstanding as of December 31, 2004
    
    
    347,028
    
    
    $
    43.88
    
    
    
    8.44Granted
    
    
    193,000
    
    
    
    71.42Forfeited
    
    
    (5,000
    )
    
    
    56.29Options outstanding as of September 30, 2005
    
    
    535,028
    
    
    $
    53.70
    
    
    
    8.33
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(Dollars in thousands)Net Income (as reported)
    
    $
    148,572
    
    
    $
    117,226
    
    
    $
    434,325
    
    
    $
    345,035Add: Stock-based
compensation expense
recognized during period,
     net of tax effects
    
    
    27
    
    
    
    24
    
    
    
    75
    
    
    
    72Less: Stock-based employee
compensation expense
determined under
     fair
value-based method, net of
taxes
    
    
    (281
    )
    
    
    (249
    )
    
    
    (818
    )
    
    
    (708
    )Pro Forma Net Income
    
    $
    148,318
    
    
    $
    117,001
    
    
    $
    433,582
    
    
    $
    344,399
 32




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 2.
    
    Mergers and Acquisitions
 Commercial Federal Corporation Acquisition
    Community First Bankshares Acquisition
 Business Combinations
  (Dollars in thousands)AssetsCash and cash equivalents
    
    $
    228,233Securities available for sale
    
    
    1,458,677Net loans and leases
    
    
    3,394,490Goodwill
    
    
    914,396Intangibles
    
    
    96,021Other assets
    
    
    313,378Total Assets
    
    $
    6,405,195Liabilities and Stockholders EquityDeposits
    
    $
    4,511,754Debt
    
    
    603,318Other liabilities
    
    
    95,217Total Liabilities
    
    
    5,210,289Stockholders equity
    
    
    1,194,906Total Liabilities and Stockholders Equity
    
    $
    6,405,195
 33




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  (Dollars in thousands)Total purchase price of Community First, including transaction costs
    
    $
    1,199,459Equity of Community First prior to acquisition by BancWest
    
    
    352,693Excess of pushed down equity over the carrying value of net assets acquired
    
    
    846,766Estimated adjustments to reflect assets acquired and liabilities assumed at fair
value:Sublease loss reserve
    
    
    910Loans and leases
    
    
    27,104Premises and equipment
    
    
    (4,989
    )Other assets
    
    
    4,245Severance and employee relocation
    
    
    7,659Contract terminations
    
    
    5,480Identifiable intangibles
    
    
    (3,218
    )Deposits
    
    
    8,985Debt
    
    
    15,093Other liabilities and taxes
    
    
    6,361Estimated fair value adjustments related to net assets acquired
    
    
    67,630Estimated goodwill resulting from the merger with Community First
    
    $
    914,396
  (Unaudited)
    
    
    (Unaudited)(Dollars in thousands)
    
    Three Months Ended
    
    
    Nine Months EndedSeptember 30, 2004
    
    
    September 30, 2004Net interest income
    
    $
    391,165
    
    
    $
    1,154,849Provision for loan and lease losses
    
    
    12,481
    
    
    
    47,978Noninterest income
    
    
    127,767
    
    
    
    384,752Noninterest expense
    
    
    286,837
    
    
    
    842,252Income before income taxes
    
    
    219,614
    
    
    
    649,371Provision for income taxes
    
    
    84,378
    
    
    
    251,575Net Income
    
    $
    135,236
    
    
    $
    397,796
  Severance
    
    
    
    
    
    
    Subleaseand
    
    
    Contract
    
    
    loss
    
    
    Fixed
    
    
    Prepaid(Dollars in thousands)
    
    Relocation
    
    
    Terminations
    
    
    Reserves
    
    
    Assets
    
    
    Expenses
    
    
    Other
    
    
    TotalBalance, December 31, 2004
    
    $
    7,557
    
    
    $
    5,810
    
    
    $
    1,196
    
    
    $
    10,431
    
    
    $
    383
    
    
    $
    
    
    
    $
    25,377Adjustments, net
    
    
    102
    
    
    
    (330
    )
    
    
    (286
    )
    
    
    401
    
    
    
    640
    
    
    
    1,763
    
    
    
    2,290Cash Payments
    
    
    (4,680
    )
    
    
    (4,669
    )
    
    
    (647
    )
    
    
    
    
    
    
    
    
    
    
    (165
    )
    
    
    (10,161
    )Balance, September 30, 2005
    
    $
    2,979
    
    
    $
    811
    
    
    $
    263
    
    
    $
    10,832
    
    
    $
    1,023
    
    
    $
    1,598
    
    
    $
    17,506
 34




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 3.
    
    Derivative Financial Instruments
  Fair Value Hedges
    Cash Flow Hedges
   35




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Free-Standing Derivative Instruments
   September 30, 2005
    
    
    December 31, 2004
    
    
    September 30, 2004Credit
    
    
    
    
    
    
    
    
    
    
    Credit
    
    
    
    
    
    
    
    
    
    
    CreditNotional
    
    
    Risk
    
    
    Net Fair
    
    
    Notional
    
    
    Risk
    
    
    Net Fair
    
    
    Notional
    
    
    Risk
    
    
    Net Fair(Dollars in thousands)
    
    Amount
    
    
    Amount
    
    
    Value
    
    
    Amount
    
    
    Amount
    
    
    Value
    
    
    Amount
    
    
    Amount
    
    
    ValueHeld for hedge purposes:Interest rate swaps
    
    $
    788,652
    
    
    $
    9,906
    
    
    $
    7,046
    
    
    $
    938,534
    
    
    $
    24,790
    
    
    $
    17,327
    
    
    $
    938,987
    
    
    $
    32,913
    
    
    $
    25,911Held for trading or free-standing:Interest rate swaps
    
    
    1,883,130
    
    
    
    24,683
    
    
    
    12,546
    
    
    
    1,502,706
    
    
    
    19,558
    
    
    
    7,856
    
    
    
    1,394,266
    
    
    
    25,178
    
    
    
    7,401Purchased interest rate options
    
    
    41,293
    
    
    
    225
    
    
    
    225
    
    
    
    143,251
    
    
    
    203
    
    
    
    203
    
    
    
    141,734
    
    
    
    89
    
    
    
    89Written interest rate options
    
    
    76,793
    
    
    
    
    
    
    
    (401
    )
    
    
    152,645
    
    
    
    
    
    
    
    (203
    )
    
    
    147,837
    
    
    
    
    
    
    
    (89
    )Forward interest rate options
    
    
    23,500
    
    
    
    99
    
    
    
    99
    
    
    
    22,000
    
    
    
    
    
    
    
    (20
    )
    
    
    19,500
    
    
    
    
    
    
    
    (17
    )Commitments to purchase and sell foreign currencies
    
    
    463,275
    
    
    
    7,452
    
    
    
    414
    
    
    
    401,057
    
    
    
    9,533
    
    
    
    1,046
    
    
    
    435,276
    
    
    
    6,199
    
    
    
    1,404Purchased foreign exchange options
    
    
    10,161
    
    
    
    240
    
    
    
    240
    
    
    
    4,876
    
    
    
    217
    
    
    
    217
    
    
    
    18,986
    
    
    
    237
    
    
    
    237Written foreign exchange options
    
    
    10,161
    
    
    
    
    
    
    
    (240
    )
    
    
    4,876
    
    
    
    
    
    
    
    (217
    )
    
    
    18,986
    
    
    
    
    
    
    
    (237
    )
 36




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 4.
    
    Securities Available for Sale
  September 30, 2005
    
    
    December 31, 2004
    
    
    September 30, 2004Amortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    
    
    
    
    Amortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    
    
    
    
    Amortized
    
    
    Unrealized
    
    
    Unrealized(Dollars in thousands)
    
    Cost
    
    
    Gains
    
    
    Losses
    
    
    Fair Value
    
    
    Cost
    
    
    Gains
    
    
    Losses
    
    
    Fair Value
    
    
    Cost
    
    
    Gains
    
    
    Losses
    
    
    Fair ValueU.S. Treasury and other U.S. Government
agencies and corporations
    
    $
    211,787
    
    
    $
    73
    
    
    $
    (1,697
    )
    
    $
    210,163
    
    
    $
    266,174
    
    
    $
    263
    
    
    $
    (1,745
    )
    
    $
    264,692
    
    
    $
    187,596
    
    
    $
    278
    
    
    $
    (959
    )
    
    $
    186,915Government-sponsored agencies
    
    
    3,287,091
    
    
    
    485
    
    
    
    (35,851
    )
    
    
    3,251,725
    
    
    
    2,372,319
    
    
    
    1,374
    
    
    
    (14,868
    )
    
    
    2,358,825
    
    
    
    1,722,226
    
    
    
    5,393
    
    
    
    (3,949
    )
    
    
    1,723,670Mortgage and asset-backed securities:Government agencies
    
    
    121,118
    
    
    
    512
    
    
    
    (529
    )
    
    
    121,101
    
    
    
    229,827
    
    
    
    1,741
    
    
    
    (450
    )
    
    
    231,118
    
    
    
    88,039
    
    
    
    1,263
    
    
    
    
    
    
    
    89,302Government-sponsored agencies
    
    
    2,989,360
    
    
    
    3,759
    
    
    
    (64,286
    )
    
    
    2,928,833
    
    
    
    3,185,857
    
    
    
    10,733
    
    
    
    (37,208
    )
    
    
    3,159,382
    
    
    
    2,396,695
    
    
    
    17,339
    
    
    
    (22,651
    )
    
    
    2,391,383Other
    
    
    606,468
    
    
    
    493
    
    
    
    (3,915
    )
    
    
    603,046
    
    
    
    487,250
    
    
    
    3,177
    
    
    
    (2,512
    )
    
    
    487,915
    
    
    
    554,707
    
    
    
    1,808
    
    
    
    (1,607
    )
    
    
    554,908Collateralized mortgage obligations:Government agencies
    
    
    141,762
    
    
    
    
    
    
    
    (3,221
    )
    
    
    138,541
    
    
    
    181,502
    
    
    
    
    
    
    
    (2,311
    )
    
    
    179,191
    
    
    
    190,185
    
    
    
    4
    
    
    
    (1,687
    )
    
    
    188,502Government-sponsored agencies
    
    
    641,812
    
    
    
    99
    
    
    
    (9,305
    )
    
    
    632,606
    
    
    
    603,173
    
    
    
    420
    
    
    
    (6,907
    )
    
    
    596,686
    
    
    
    566,548
    
    
    
    996
    
    
    
    (4,542
    )
    
    
    563,002Other
    
    
    1,090,034
    
    
    
    2,678
    
    
    
    (9,653
    )
    
    
    1,083,059
    
    
    
    568,724
    
    
    
    154
    
    
    
    (5,565
    )
    
    
    563,313
    
    
    
    412,067
    
    
    
    2,951
    
    
    
    (2,846
    )
    
    
    412,172State and political subdivisions
    
    
    80,610
    
    
    
    406
    
    
    
    (1,505
    )
    
    
    79,511
    
    
    
    56,081
    
    
    
    627
    
    
    
    (297
    )
    
    
    56,411
    
    
    
    7,700
    
    
    
    399
    
    
    
    (57
    )
    
    
    8,042Other
    
    
    55,863
    
    
    
    
    
    
    
    (2,757
    )
    
    
    53,106
    
    
    
    59,311
    
    
    
    103
    
    
    
    (2,384
    )
    
    
    57,030
    
    
    
    51,714
    
    
    
    
    
    
    
    (1,787
    )
    
    
    49,927Total securities available for sale
    
    $
    9,225,905
    
    
    $
    8,505
    
    
    $
    (132,719
    )
    
    $
    9,101.691
    
    
    $
    8,010,218
    
    
    $
    18,592
    
    
    $
    (74,247
    )
    
    $
    7,954,563
    
    
    $
    6,177,477
    
    
    $
    30,431
    
    
    $
    (40,085
    )
    
    $
    6,167,823
 37




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  September 30, 2005Less Than 12 Months
    
    
    12 Months or More
    
    
    TotalUnrealized
    
    
    
    
    
    
    Unrealized
    
    
    
    
    
    
    Unrealized(Dollars in thousands)
    
    Losses
    
    
    Fair Value
    
    
    Losses
    
    
    Fair Value
    
    
    Losses
    
    
    Fair ValueU.S. Treasury and other U.S.
Government
agencies and corporations
    
    $
    (1,233
    )
    
    $
    72,589
    
    
    $
    (464
    )
    
    $
    83,484
    
    
    $
    (1,697
    )
    
    $
    156,073Government-sponsored agencies
    
    
    (27,851
    )
    
    
    2,157,194
    
    
    
    (8,000
    )
    
    
    564,719
    
    
    
    (35,851
    )
    
    
    2,721,913Mortgage and asset-backed securities:Government agencies
    
    
    (529
    )
    
    
    55,221
    
    
    
    
    
    
    
    
    
    
    
    (529
    )
    
    
    55,221Government-sponsored agencies
    
    
    (25,302
    )
    
    
    1,550,297
    
    
    
    (38,984
    )
    
    
    803,351
    
    
    
    (64,286
    )
    
    
    2,353,648Other
    
    
    (1,452
    )
    
    
    229,455
    
    
    
    (2,463
    )
    
    
    136,740
    
    
    
    (3,915
    )
    
    
    366,195Collateralized mortgage obligations:Government agencies
    
    
    
    
    
    
    
    
    
    
    (3,221
    )
    
    
    138,541
    
    
    
    (3,221
    )
    
    
    138,541Government-sponsored agencies
    
    
    (2,761
    )
    
    
    173,470
    
    
    
    (6,544
    )
    
    
    308,214
    
    
    
    (9,305
    )
    
    
    481,684Other
    
    
    (6,167
    )
    
    
    347,866
    
    
    
    (3,486
    )
    
    
    143,677
    
    
    
    (9,653
    )
    
    
    491,543States and political subdivisions
    
    
    (1,503
    )
    
    
    26,976
    
    
    
    (2
    )
    
    
    322
    
    
    
    (1,505
    )
    
    
    27,298Other
    
    
    (206
    )
    
    
    4,019
    
    
    
    (2,551
    )
    
    
    33,825
    
    
    
    (2,757
    )
    
    
    37,844Total securities available for sale
    
    $
    (67,004
    )
    
    $
    4,617,087
    
    
    $
    (65,715
    )
    
    $
    2,212,873
    
    
    $
    (132,719
    )
    
    $
    6,829,960
  Three Months Ended September 30,
    
    
    Nine Months Ended September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(Dollars in thousands)Realized gains
    
    $
    437
    
    
    $
    
    
    
    $
    2,317
    
    
    $
    1,701Realized losses
    
    
    (326
    )
    
    
    
    
    
    
    (1,791
    )
    
    
    (643
    )Realized net gains
    
    $
    111
    
    
    $
    
    
    
    $
    526
    
    
    $
    1,058
 38




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 5.
    
    Loans and Leases
  September 30, 2005
    
    
    December 31, 2004
    
    
    September 30, 2004Amount
    
    
    %
    
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %(Dollars in thousands)Commercial, financial and agricultural
    
    $
    5,985,275
    
    
    
    17.0
    %
    
    $
    6,027,376
    
    
    
    18.4
    %
    
    $
    4,651,392
    
    
    
    16.7
    %Real estate:Commercial
    
    
    6,837,122
    
    
    
    19.5
    
    
    
    6,706,882
    
    
    
    20.5
    
    
    
    5,342,901
    
    
    
    19.2Construction
    
    
    1,655,909
    
    
    
    4.7
    
    
    
    1,493,723
    
    
    
    4.6
    
    
    
    1,158,581
    
    
    
    4.2Residential
    
    
    8,557,422
    
    
    
    24.3
    
    
    
    6,700,462
    
    
    
    20.5
    
    
    
    5,808,934
    
    
    
    20.8Total real estate loans
    
    
    17,050,453
    
    
    
    48.5
    
    
    
    14,901,067
    
    
    
    45.6
    
    
    
    12,310,416
    
    
    
    44.2Consumer
    
    
    9,594,823
    
    
    
    27.3
    
    
    
    9,243,731
    
    
    
    28.3
    
    
    
    8,398,732
    
    
    
    30.2Lease financing
    
    
    2,114,732
    
    
    
    6.1
    
    
    
    2,132,578
    
    
    
    6.5
    
    
    
    2,094,814
    
    
    
    7.5Foreign loans
    
    
    379,717
    
    
    
    1.1
    
    
    
    384,091
    
    
    
    1.2
    
    
    
    376,728
    
    
    
    1.4Total loans and leases
    
    $
    35,125,000
    
    
    
    100.0
    %
    
    $
    32,688,843
    
    
    
    100.0
    %
    
    $
    27,832,082
    
    
    
    100.0
    %
  39




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 6.
    
    Allowance for Loan and Lease Losses
  Three Months Ended September 30,
    
    
    Nine Months Ended September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(Dollars in thousands)Balance at beginning of period
    
    $
    423,294
    
    
    $
    396,101
    
    
    $
    436,391
    
    
    $
    391,699Provision for loans and lease losses
    
    
    10,680
    
    
    
    10,600
    
    
    
    25,004
    
    
    
    41,365Loans and leases charged off:Commercial, financial and agricultural
    
    
    1,445
    
    
    
    7,173
    
    
    
    5,925
    
    
    
    11,488Real estate:Commercial
    
    
    862
    
    
    
    1,242
    
    
    
    1,686
    
    
    
    2,331Construction
    
    
    687
    
    
    
    
    
    
    
    687
    
    
    
    Residential
    
    
    253
    
    
    
    28
    
    
    
    989
    
    
    
    102Consumer
    
    
    15,147
    
    
    
    14,804
    
    
    
    48,106
    
    
    
    41,870Lease financing
    
    
    2,873
    
    
    
    7,797
    
    
    
    10,119
    
    
    
    17,282Foreign
    
    
    263
    
    
    
    186
    
    
    
    972
    
    
    
    1,357Total loans and leases charged off
    
    
    21,530
    
    
    
    31,230
    
    
    
    68,484
    
    
    
    74,430Recoveries on loans and leases previously charged off:Commercial, financial and agricultural
    
    
    968
    
    
    
    4,050
    
    
    
    5,941
    
    
    
    8,922Real estate:Commercial
    
    
    424
    
    
    
    90
    
    
    
    1,140
    
    
    
    270Construction
    
    
    1
    
    
    
    35
    
    
    
    2
    
    
    
    103Residential
    
    
    72
    
    
    
    284
    
    
    
    470
    
    
    
    760Consumer
    
    
    4,332
    
    
    
    3,671
    
    
    
    13,133
    
    
    
    10,281Lease financing
    
    
    1,369
    
    
    
    2,383
    
    
    
    4,806
    
    
    
    6,661Foreign
    
    
    240
    
    
    
    107
    
    
    
    1,447
    
    
    
    460Total recoveries on loans and leases previously charged off
    
    
    7,406
    
    
    
    10,620
    
    
    
    26,939
    
    
    
    27,457Net charge-offs
    
    
    (14,124
    )
    
    
    (20,610
    )
    
    
    (41,545
    )
    
    
    (46,973
    )Balance at end of period
    
    $
    419,850
    
    
    $
    386,091
    
    
    $
    419,850
    
    
    $
    386,091
 40




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 7.
    
    Goodwill and Intangible Assets
  Bank of the West
    
    
    First Hawaiian BankRegional
    
    
    Commercial
    
    
    Consumer
    
    
    Retail
    
    
    Consumer
    
    
    Commercial
    
    
    Wealth
    
    
    
    
    
    
    Consolidated(Dollars in millions)
    
    Banking
    
    
    Banking
    
    
    Finance
    
    
    Banking
    
    
    Finance
    
    
    Banking
    
    
    Management
    
    
    BancWest
    
    
    TotalsBalance as of December 31, 2004
    
    $
    2,127
    
    
    $
    708
    
    
    $
    308
    
    
    $
    650
    
    
    $
    216
    
    
    $
    118
    
    
    $
    11
    
    
    $
    175
    
    
    $
    4,313Purchase accounting adjustment
Trinity Capital
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1Community First
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2USDB
    
    
    170
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (170
    )
    
    
    Balance as of September 30, 2005
    
    $
    2,299
    
    
    $
    709
    
    
    $
    308
    
    
    $
    650
    
    
    $
    216
    
    
    $
    118
    
    
    $
    11
    
    
    $
    5
    
    
    $
    4,316
  (Dollars in thousands)Estimate for the three months ending
December 31, 2005
    
    $
    9,977Estimate for years ending December 31,2006
    
    $
    37,3082007
    
    
    35,0022008
    
    
    33,0782009
    
    
    31,4712010
    
    
    30,138
  Gross Carrying
    
    
    Accumulated
    
    
    Net Book(Dollars in thousands)
    
    Amount
    
    
    Amortization
    
    
    ValueBalance as of September 30, 2005:Core Deposits
    
    $
    330,206
    
    
    $
    98,288
    
    
    $
    231,918Other Intangible Assets
    
    
    11,177
    
    
    
    1,373
    
    
    
    9,804Total
    
    $
    341,383
    
    
    $
    99,661
    
    
    $
    241,722Balance as of December 31, 2004:Core Deposits
    
    $
    330,206
    
    
    $
    69,141
    
    
    $
    261,065Other Intangible Assets
    
    
    12,000
    
    
    
    575
    
    
    
    11,425Total
    
    $
    342,206
    
    
    $
    69,716
    
    
    $
    272,490Balance as of September 30, 2004:Core Deposits
    
    $
    230,538
    
    
    $
    60,471
    
    
    $
    170,067Total
    
    $
    230,538
    
    
    $
    60,471
    
    
    $
    170,067
 41




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 8.
    
    Regulatory Capital Requirements
  To Be WellCapitalizedUnder PromptFor Required
    
    
    Corrective ActionActual
    
    
    Minimum Capital
    
    
    ProvisionsAmount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio(Dollars in thousands)Tier 1 Capital to Risk-Weighted
Assets:Bank of the West
    
    $
    3,630,624
    
    
    
    10.80
    %
    
    $
    1,344,158
    
    
    
    4.00
    %
    
    $
    2,016,237
    
    
    
    6.00
    %First Hawaiian Bank
    
    
    1,082,680
    
    
    
    14.22
    
    
    
    304,600
    
    
    
    4.00
    
    
    
    456,900
    
    
    
    6.00Total Capital to Risk-Weighted
Assets:Bank of the West
    
    $
    4,142,289
    
    
    
    12.33
    %
    
    $
    2,688,316
    
    
    
    8.00
    %
    
    $
    3,360,395
    
    
    
    10.00
    %First Hawaiian Bank
    
    
    1,244,765
    
    
    
    16.35
    
    
    
    609,200
    
    
    
    8.00
    
    
    
    761,500
    
    
    
    10.00Tier 1 Capital to Average
Assets (leverage ratio) (1):Bank of the West
    
    $
    3,630,624
    
    
    
    9.31
    %
    
    $
    1,559,729
    
    
    
    4.00
    %
    
    $
    1,949,661
    
    
    
    5.00
    %First Hawaiian Bank
    
    
    1,082,680
    
    
    
    10.81
    
    
    
    400,523
    
    
    
    4.00
    
    
    
    500,654
    
    
    
    5.00
 
 (1)
    
    The leverage ratio consists of the ratio of Tier 1 capital to average assets excluding
goodwill and certain other items. The minimum leverage ratio guideline is three percent for
banking organizations that do not anticipate or are not experiencing significant growth, and
that have well-diversified risk, excellent asset quality, high liquidity, good earnings, a
strong banking organization, and are rated a composite 1 under the Uniform Financial
Institution Rating System established by the Federal Financial Institution Examination
Council. For all others, the minimum ratio is 4%.   42




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 9.
    
    Pension and Other Postretirement Benefit Plans
    Pension Benefits
    
    
    Other Benefits2005
    
    
    2004
    
    
    2005
    
    
    2004(Dollars in thousands)Service cost
    
    $
    2,147
    
    
    $
    2,260
    
    
    $
    378
    
    
    $
    381Interest cost
    
    
    6,814
    
    
    
    6,569
    
    
    
    582
    
    
    
    655Expected return on plan assets
    
    
    (9,170
    )
    
    
    (8,159
    )
    
    
    
    
    
    
    Amortization of prior service cost
    
    
    
    
    
    
    
    
    
    
    (281
    )
    
    
    (218
    )Recognized net actuarial loss
    
    
    3,907
    
    
    
    1,515
    
    
    
    166
    
    
    
    124Total benefit cost
    
    $
    3,698
    
    
    $
    2,185
    
    
    $
    845
    
    
    $
    942
  Pension Benefits
    
    
    Other Benefits2005
    
    
    2004
    
    
    2005
    
    
    2004(Dollars in thousands)Service cost
    
    $
    8,059
    
    
    $
    6,780
    
    
    $
    1,134
    
    
    $
    1,314Interest cost
    
    
    20,409
    
    
    
    19,706
    
    
    
    1,746
    
    
    
    1,964Expected return on plan assets
    
    
    (27,678
    )
    
    
    (24,477
    )
    
    
    
    
    
    
    Amortization of prior service cost
    
    
    
    
    
    
    
    
    
    
    (843
    )
    
    
    (436
    )Recognized net actuarial loss
    
    
    11,231
    
    
    
    4,545
    
    
    
    498
    
    
    
    365Total benefit cost
    
    $
    12,021
    
    
    $
    6,554
    
    
    $
    2,535
    
    
    $
    3,207
  Funded Pension BenefitsThree Months Ended September 30,
    
    
    Nine Months Ended September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(Dollars in thousands)Service cost
    
    $
    1,665
    
    
    $
    1,761
    
    
    $
    6,615
    
    
    $
    5,282Interest cost
    
    
    5,638
    
    
    
    5,530
    
    
    
    16,880
    
    
    
    16,591Expected return on plan assets
    
    
    (9,170
    )
    
    
    (8,159
    )
    
    
    (27,678
    )
    
    
    (24,477
    )Recognized net actuarial loss
    
    
    3,207
    
    
    
    1,274
    
    
    
    9,130
    
    
    
    3,823Net periodic benefit cost
    
    $
    1,340
    
    
    $
    406
    
    
    $
    4,947
    
    
    $
    1,219
 Contributions
  43




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 10.
    
    Operating Segments
   Bank of the West
  Regional Banking
      44




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  Commercial Banking
     Consumer Finance
  First Hawaiian Bank
  Retail Banking
   45




---



##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   Consumer Finance
   Commercial Banking
     Wealth Management
  46




---



##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  Bank of the West
    
    
    First Hawaiian BankRegional
    
    
    Commercial
    
    
    Consumer
    
    
    
    
    
    
    Retail
    
    
    Consumer
    
    
    Commercial
    
    
    Wealth
    
    
    
    
    
    
    Other
    
    
    Reconciling
    
    
    Consolidated(Dollars in millions)
    
    Banking
    
    
    Banking
    
    
    Finance
    
    

Other (1)
    
    
    Banking
    
    
    Finance
    
    
    Banking
    
    
    Management
    
    

Other (2)
    
    

BancWest (3)
    
    

Items (4)
    
    
    TotalsThree Months Ended September 30, 2005:Net interest income
    
    $
    187.5
    
    
    $
    88.4
    
    
    $
    64.0
    
    
    $
    9.5
    
    
    $
    76.9
    
    
    $
    19.8
    
    
    $
    8.4
    
    
    $
    
    
    
    $
    (6.3
    )
    
    $
    (44.5
    )
    
    $
    
    
    
    $
    403.7Noninterest income
    
    
    69.3
    
    
    
    20.1
    
    
    
    6.8
    
    
    
    5.5
    
    
    
    14.8
    
    
    
    7.7
    
    
    
    0.7
    
    
    
    6.6
    
    
    
    5.6
    
    
    
    (0.2
    )
    
    
    
    
    
    
    136.9Noninterest expense
    
    
    167.6
    
    
    
    35.3
    
    
    
    19.3
    
    
    
    7.2
    
    
    
    44.5
    
    
    
    11.6
    
    
    
    1.5
    
    
    
    6.0
    
    
    
    (4.8
    )
    
    
    2.5
    
    
    
    
    
    
    
    290.7Provision for loan and lease losses
    
    
    2.3
    
    
    
    0.1
    
    
    
    5.1
    
    
    
    
    
    
    
    0.6
    
    
    
    2.3
    
    
    
    0.2
    
    
    
    
    
    
    
    0.2
    
    
    
    (0.1
    )
    
    
    
    
    
    
    10.7Tax provision (benefit)
    
    
    34.2
    
    
    
    28.8
    
    
    
    18.7
    
    
    
    1.2
    
    
    
    17.9
    
    
    
    5.2
    
    
    
    2.5
    
    
    
    0.2
    
    
    
    1.3
    
    
    
    (19.4
    )
    
    
    
    
    
    
    90.6Net income (loss)
    
    $
    52.7
    
    
    $
    44.3
    
    
    $
    27.7
    
    
    $
    6.6
    
    
    $
    28.7
    
    
    $
    8.4
    
    
    $
    4.9
    
    
    $
    0.4
    
    
    $
    2.6
    
    
    $
    (27.7
    )
    
    $
    
    
    
    $
    148.6Total assets at September 30
    
    
    14,472
    
    
    
    11,124
    
    
    
    9,464
    
    
    
    8,667
    
    
    
    4,247
    
    
    
    1,583
    
    
    
    1,309
    
    
    
    18
    
    
    
    4,147
    
    
    
    9,413
    
    
    
    (9,807
    )
    
    
    54,637Goodwill at September 30
    
    
    2,299
    
    
    
    709
    
    
    
    308
    
    
    
    
    
    
    
    650
    
    
    
    216
    
    
    
    118
    
    
    
    11
    
    
    
    
    
    
    
    5
    
    
    
    
    
    
    
    4,316Average assets
    
    
    13,804
    
    
    
    10,992
    
    
    
    9,409
    
    
    
    8,153
    
    
    
    4,218
    
    
    
    1,607
    
    
    
    1,311
    
    
    
    16
    
    
    
    3,875
    
    
    
    9,334
    
    
    
    (9,761
    )
    
    
    52,958Average loans and leases
    
    
    10,294
    
    
    
    9,407
    
    
    
    8,976
    
    
    
    
    
    
    
    3,216
    
    
    
    1,422
    
    
    
    1,111
    
    
    
    
    
    
    
    28
    
    
    
    8
    
    
    
    (35
    )
    
    
    34,427Average deposits
    
    
    20,022
    
    
    
    4,631
    
    
    
    17
    
    
    
    2,668
    
    
    
    7,940
    
    
    
    9
    
    
    
    57
    
    
    
    35
    
    
    
    203
    
    
    
    
    
    
    
    (68
    )
    
    
    35,514Three Months Ended September 30, 2004:Net interest income
    
    $
    124.3
    
    
    $
    81.8
    
    
    $
    52.4
    
    
    $
    22.2
    
    
    $
    63.6
    
    
    $
    19.5
    
    
    $
    7.4
    
    
    $
    (0.1
    )
    
    $
    (7.4
    )
    
    $
    (33.1
    )
    
    $
    
    
    
    $
    330.6Noninterest income
    
    
    43.9
    
    
    
    16.5
    
    
    
    7.5
    
    
    
    1.9
    
    
    
    15.4
    
    
    
    8.2
    
    
    
    1.0
    
    
    
    6.8
    
    
    
    3.9
    
    
    
    (0.3
    )
    
    
    
    
    
    
    104.8Noninterest expense
    
    
    112.9
    
    
    
    33.2
    
    
    
    20.7
    
    
    
    7.8
    
    
    
    44.3
    
    
    
    9.8
    
    
    
    1.7
    
    
    
    5.5
    
    
    
    (5.8
    )
    
    
    4.4
    
    
    
    
    
    
    
    234.5Provision for loan and lease losses
    
    
    0.8
    
    
    
    3.0
    
    
    
    2.7
    
    
    
    
    
    
    
    1.2
    
    
    
    2.7
    
    
    
    0.2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10.6Tax provision (benefit)
    
    
    21.6
    
    
    
    23.7
    
    
    
    13.2
    
    
    
    7.5
    
    
    
    13.8
    
    
    
    5.9
    
    
    
    2.2
    
    
    
    0.5
    
    
    
    0.2
    
    
    
    (15.5
    )
    
    
    
    
    
    
    73.1Net income (loss)
    
    $
    32.9
    
    
    $
    38.4
    
    
    $
    23.3
    
    
    $
    8.8
    
    
    $
    19.7
    
    
    $
    9.3
    
    
    $
    4.3
    
    
    $
    0.7
    
    
    $
    2.1
    
    
    $
    (22.3
    )
    
    $
    
    
    
    $
    117.2Total assets at September 30
    
    
    8,301
    
    
    
    9,442
    
    
    
    8,737
    
    
    
    5,266
    
    
    
    3,883
    
    
    
    1,508
    
    
    
    1,208
    
    
    
    18
    
    
    
    3,531
    
    
    
    7,327
    
    
    
    (7,816
    )
    
    
    41,405Goodwill at September 30
    
    
    1,214
    
    
    
    708
    
    
    
    308
    
    
    
    
    
    
    
    650
    
    
    
    216
    
    
    
    118
    
    
    
    11
    
    
    
    
    
    
    
    5
    
    
    
    
    
    
    
    3,230Average assets
    
    
    8,109
    
    
    
    9,171
    
    
    
    8,674
    
    
    
    5,139
    
    
    
    3,838
    
    
    
    1,535
    
    
    
    1,221
    
    
    
    27
    
    
    
    3,401
    
    
    
    7,236
    
    
    
    (7,770
    )
    
    
    40,581Average loans and leases
    
    
    6,099
    
    
    
    7,867
    
    
    
    8,215
    
    
    
    
    
    
    
    2,847
    
    
    
    1,348
    
    
    
    1,022
    
    
    
    8
    
    
    
    28
    
    
    
    35
    
    
    
    (36
    )
    
    
    27,433Average deposits
    
    
    14,894
    
    
    
    3,698
    
    
    
    10
    
    
    
    2,256
    
    
    
    7,206
    
    
    
    9
    
    
    
    35
    
    
    
    24
    
    
    
    215
    
    
    
    
    
    
    
    (76
    )
    
    
    28,271
 Bank of the West
    
    
    First Hawaiian BankRegional
    
    
    Commercial
    
    
    Consumer
    
    
    
    
    
    
    Retail
    
    
    Consumer
    
    
    Commercial
    
    
    Wealth
    
    
    
    
    
    
    Other
    
    
    Reconciling
    
    
    Consolidated(Dollars in millions)
    
    Banking
    
    
    Banking
    
    
    Finance
    
    
    Other(1)
    
    
    Banking
    
    
    Finance
    
    
    Banking
    
    
    Management
    
    
    Other(2)
    
    
    BancWest(3)
    
    
    Items(4)
    
    
    TotalsNine Months Ended September 30, 2005:Net interest income
    
    $
    546.7
    
    
    $
    258.9
    
    
    $
    176.0
    
    
    $
    55.4
    
    
    $
    216.7
    
    
    $
    58.6
    
    
    $
    24.2
    
    
    $
    
    
    
    $
    (18.1
    )
    
    $
    (125.4
    )
    
    $
    
    
    
    $
    1,193.0Noninterest income
    
    
    191.9
    
    
    
    60.3
    
    
    
    21.8
    
    
    
    13.2
    
    
    
    44.0
    
    
    
    23.5
    
    
    
    2.9
    
    
    
    21.2
    
    
    
    15.4
    
    
    
    (1.4
    )
    
    
    
    
    
    
    392.8Noninterest expense
    
    
    489.4
    
    
    
    107.7
    
    
    
    64.2
    
    
    
    22.1
    
    
    
    131.5
    
    
    
    33.4
    
    
    
    4.4
    
    
    
    18.0
    
    
    
    (10.6
    )
    
    
    6.3
    
    
    
    
    
    
    
    866.4Provision for loan and lease losses
    
    
    7.6
    
    
    
    (9.9
    )
    
    
    18.4
    
    
    
    (0.6
    )
    
    
    1.3
    
    
    
    7.6
    
    
    
    0.6
    
    
    
    
    
    
    
    1.1
    
    
    
    (1.1
    )
    
    
    
    
    
    
    25.0Tax provision (benefit)
    
    
    93.7
    
    
    
    85.6
    
    
    
    45.7
    
    
    
    13.0
    
    
    
    49.4
    
    
    
    15.9
    
    
    
    7.4
    
    
    
    1.2
    
    
    
    2.3
    
    
    
    (54.1
    )
    
    
    
    
    
    
    260.1Net income (loss)
    
    $
    147.9
    
    
    $
    135.8
    
    
    $
    69.5
    
    
    $
    34.1
    
    
    $
    78.5
    
    
    $
    25.2
    
    
    $
    14.7
    
    
    $
    2.0
    
    
    $
    4.5
    
    
    $
    (77.9
    )
    
    $
    
    
    
    $
    434.3Average assets
    
    
    13,613
    
    
    
    10,608
    
    
    
    9,303
    
    
    
    7,808
    
    
    
    4,137
    
    
    
    1,589
    
    
    
    1,267
    
    
    
    17
    
    
    
    3,822
    
    
    
    9,206
    
    
    
    (9,655
    )
    
    
    51,715Average loans and leases
    
    
    10,058
    
    
    
    9,099
    
    
    
    8,819
    
    
    
    
    
    
    
    3,136
    
    
    
    1,406
    
    
    
    1,067
    
    
    
    
    
    
    
    28
    
    
    
    17
    
    
    
    (34
    )
    
    
    33,596Average deposits
    
    
    19,991
    
    
    
    4,428
    
    
    
    15
    
    
    
    2,389
    
    
    
    7,785
    
    
    
    10
    
    
    
    51
    
    
    
    34
    
    
    
    213
    
    
    
    
    
    
    
    (71
    )
    
    
    34,845Nine Months Ended September 30, 2004:Net interest income
    
    $
    369.5
    
    
    $
    238.7
    
    
    $
    156.6
    
    
    $
    65.0
    
    
    $
    178.8
    
    
    $
    58.4
    
    
    $
    26.4
    
    
    $
    (0.3
    )
    
    $
    (20.1
    )
    
    $
    (99.1
    )
    
    $
    
    
    
    $
    973.9Noninterest income
    
    
    132.1
    
    
    
    51.1
    
    
    
    16.7
    
    
    
    5.3
    
    
    
    45.3
    
    
    
    23.6
    
    
    
    10.3
    
    
    
    20.6
    
    
    
    11.8
    
    
    
    (1.4
    )
    
    
    
    
    
    
    315.4Noninterest expense
    
    
    327.8
    
    
    
    99.7
    
    
    
    59.1
    
    
    
    17.3
    
    
    
    131.7
    
    
    
    29.6
    
    
    
    8.4
    
    
    
    17.5
    
    
    
    (17.2
    )
    
    
    10.8
    
    
    
    
    
    
    
    684.7Provision for loan and lease losses
    
    
    3.0
    
    
    
    3.4
    
    
    
    24.5
    
    
    
    
    
    
    
    3.6
    
    
    
    6.9
    
    
    
    0.5
    
    
    
    
    
    
    
    (0.6
    )
    
    
    0.1
    
    
    
    
    
    
    
    41.4Tax provision (benefit)
    
    
    67.4
    
    
    
    72.8
    
    
    
    34.1
    
    
    
    22.0
    
    
    
    35.2
    
    
    
    18.0
    
    
    
    9.5
    
    
    
    1.1
    
    
    
    3.8
    
    
    
    (45.7
    )
    
    
    
    
    
    
    218.2Net income (loss)
    
    $
    103.4
    
    
    $
    113.9
    
    
    $
    55.6
    
    
    $
    31.0
    
    
    $
    53.6
    
    
    $
    27.5
    
    
    $
    18.3
    
    
    $
    1.7
    
    
    $
    5.7
    
    
    $
    (65.7
    )
    
    $
    
    
    
    $
    345.0Average assets
    
    
    7,968
    
    
    
    8,926
    
    
    
    8,409
    
    
    
    4,842
    
    
    
    3,697
    
    
    
    1,521
    
    
    
    1,245
    
    
    
    25
    
    
    
    3,318
    
    
    
    7,140
    
    
    
    (7,666
    )
    
    
    39,425Average loans and leases
    
    
    5,947
    
    
    
    7,601
    
    
    
    8,000
    
    
    
    
    
    
    
    2,708
    
    
    
    1,333
    
    
    
    1,074
    
    
    
    9
    
    
    
    33
    
    
    
    41
    
    
    
    (36
    )
    
    
    26,710Average deposits
    
    
    14,642
    
    
    
    3,520
    
    
    
    9
    
    
    
    1,902
    
    
    
    7,019
    
    
    
    8
    
    
    
    25
    
    
    
    26
    
    
    
    202
    
    
    
    
    
    
    
    (76
    )
    
    
    27,277
 
 47




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
 (1)
    
    The net interest income and noninterest income items in the Other column are
related to Treasury activities and unallocated other income for all periods presented. The
noninterest expense items in the Other column are related to Treasury activities and
unallocated administrative items for all periods presented. The material average asset items
in the Other column relate to unallocated Treasury securities for the periods presented. The
material average deposit items in the Other column relate to unallocated Treasury balances for
the periods presented.(2)
    
    The net interest income and noninterest income items in the Other column are related
to Treasury activities and unallocated other income and transfer pricing charges for all
periods presented. The noninterest expense items in the Other column are unallocated
administrative items for September 30, 2005. The noninterest expense items in the Other
column are primarily from Treasury activities and unallocated administrative items for
September 30, 2004. The material average asset items in the Other column are related to
unallocated Treasury securities for the periods presented. The material average deposit items
in the Other column are related to unallocated Treasury balances for the periods presented.(3)
    
    The Other BancWest column consists primarily of BancWest Corporation (Parent
Company) and FHL Lease Holding Company, Inc.(4)
    
    The reconciling items are intercompany eliminations. 48




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 11.
    
    Subsequent Events
  49




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##### Table of Contents



BancWest Corporation and Subsidiaries
EXHIBITS
 
 PART II. OTHER INFORMATION
 
 Item 6.
    
    Exhibits
  (a)
    
    Exhibits
 10.1
    
    Amendment No. 3 to BancWest Corporation Supplemental Executive
Retirement Plan incorporated by reference to Exhibit 10.1 to the
registrants Report on Form 8-K dated September 14, 2005.
 12
    
    Statement regarding computation of ratios31
    
    Section 302 Certifications32
    
    Section 1350 Certifications
 
 SIGNATURE
  BANCWEST CORPORATIONDate: November 14, 2005
    
    By
    
    /s/ Douglas C. GrigsbyDouglas C. Grigsby
Executive Vice President, Chief
Financial Officer and Treasurer
(principal financial officer)
 50