##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D. C. 20549
 
 FORM 10-Q
 S QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2005
  £ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 Commission file number 0-7949
 
 BANCWEST CORPORATION
  
 Delaware
(State of incorporation)
    
    99-0156159
(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:
  
  
 P
 
 Class
    
    OutstandingClass A Common Stock, $0.01 Par Value
    
    106,859,123 Shares




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BANCWEST CORPORATION AND SUBSIDIARIES
 FORM 10-Q
June 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
    
    13Securities Available For Sale
    
    17Loans 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 4.
    
    Submission of Matters to a Vote of Security Holders
    
    49Item 6.
    
    Exhibits
    
    49SIGNATURE
    
    50Exhibit 12
    
    Statement Regarding Computation of RatiosExhibit 31
    
    Section 302 CertificationsExhibit 32
    
    Section 1350 CertificationsEXHIBIT 12EXHIBIT 31EXHIBIT 32
   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 June 30,
    
    
    Six Months Ended June 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Earnings:(Dollars in thousands)Interest income
    
    $
    593,156
    
    
    $
    419,868
    
    
    $
    1,151,384
    
    
    $
    837,019Interest expense
    
    
    198,238
    
    
    
    97,607
    
    
    
    362,043
    
    
    
    193,733Net interest income
    
    
    394,918
    
    
    
    322,261
    
    
    
    789,341
    
    
    
    643,286Provision for loan and lease losses
    
    
    3,224
    
    
    
    11,900
    
    
    
    14,324
    
    
    
    30,765Noninterest income
    
    
    133,209
    
    
    
    110,021
    
    
    
    256,005
    
    
    
    211,492Noninterest expense
    
    
    283,585
    
    
    
    232,224
    
    
    
    575,677
    
    
    
    451,138Income before income taxes
    
    
    241,318
    
    
    
    188,158
    
    
    
    455,345
    
    
    
    372,875Provision for income taxes
    
    
    92,169
    
    
    
    73,401
    
    
    
    169,592
    
    
    
    145,066Net income
    
    $
    149,149
    
    
    $
    114,757
    
    
    $
    285,753
    
    
    $
    227,809Balance Sheet Data Averages:(Dollars in millions)Average assets
    
    $
    51,816
    
    
    $
    39,343
    
    
    $
    51,083
    
    
    $
    38,840Average securities available for sale at cost
    
    
    8,898
    
    
    
    6,005
    
    
    
    8,623
    
    
    
    5,920Average loans and leases (1)
    
    
    33,594
    
    
    
    26,747
    
    
    
    33,173
    
    
    
    26,344Average deposits
    
    
    35,000
    
    
    
    27,117
    
    
    
    34,504
    
    
    
    26,775Average long-term debt
    
    
    6,688
    
    
    
    4,582
    
    
    
    6,461
    
    
    
    4,453Average stockholders equity
    
    
    5,907
    
    
    
    4,416
    
    
    
    5,854
    
    
    
    4,371Balance Sheet Data At Period End:(Dollars in millions)Assets
    
    
    52,516
    
    
    
    40,264
    
    
    
    52,516
    
    
    
    40,264Securities available for sale
    
    
    9,025
    
    
    
    5,821
    
    
    
    9,025
    
    
    
    5,821Loans and leases (1)
    
    
    34,034
    
    
    
    27,255
    
    
    
    34,034
    
    
    
    27,255Deposits
    
    
    34,623
    
    
    
    27,976
    
    
    
    34,623
    
    
    
    27,976Long-term debt
    
    
    6,830
    
    
    
    4,646
    
    
    
    6,830
    
    
    
    4,646Stockholders equity
    
    
    6,003
    
    
    
    4,431
    
    
    
    6,003
    
    
    
    4,431Selected Financial Ratios For the Period Ended:Return on average total assets (ROA)(2)
    
    
    1.15
    %
    
    
    1.17
    %
    
    
    1.13
    %
    
    
    1.18
    %Return on average stockholders equity (ROE)(2)
    
    
    10.13
    
    
    
    10.45
    
    
    
    9.84
    
    
    
    10.48Net interest margin (taxable-equivalent basis)(2)
    
    
    3.66
    
    
    
    3.88
    
    
    
    3.73
    
    
    
    3.93Net loans and leases charged off to average loans and leases (2)
    
    
    0.15
    
    
    
    0.19
    
    
    
    0.17
    
    
    
    0.20Efficiency ratio (3)
    
    
    53.70
    
    
    
    53.72
    
    
    
    55.07
    
    
    
    52.78Average equity to average total assets
    
    
    11.40
    
    
    
    11.22
    
    
    
    11.46
    
    
    
    11.25At Period End:Allowance for loan and lease losses to total loans and leases
    
    
    1.25
    
    
    
    1.46
    
    
    
    1.25
    
    
    
    1.46Nonperforming assets to total loans and leases and other
real estate owned and repossessed personal property
    
    
    0.42
    
    
    
    0.52
    
    
    
    0.42
    
    
    
    0.52Allowance for loan and lease losses to nonaccruing loans and leases
    
    
    3.33
    x
    
    
    3.21
    x
    
    
    3.33
    x
    
    
    3.21
    xRegulatory Capital Ratios:Leverage Ratio (4):Bank of the West
    
    
    9.26
    %
    
    
    9.56
    %
    
    
    9.26
    %
    
    
    9.56
    %First Hawaiian Bank
    
    
    10.62
    
    
    
    10.31
    
    
    
    10.62
    
    
    
    10.31Tier 1 capital (risk-based):Bank of the West
    
    
    10.81
    
    
    
    10.80
    
    
    
    10.81
    
    
    
    10.80First Hawaiian Bank
    
    
    13.62
    
    
    
    13.32
    
    
    
    13.62
    
    
    
    13.32Total capital (risk-based):Bank of the West
    
    
    12.41
    
    
    
    12.96
    
    
    
    12.41
    
    
    
    12.96First Hawaiian Bank
    
    
    15.72
    
    
    
    15.62
    
    
    
    15.72
    
    
    
    15.62
 
 (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 business, 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
 Second quarter 2005 compared with second quarter 2004
  Six-month period 2005 compared with six-month period 2004
  5




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BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
  Balance Sheet Analysis
   
 RESULTS OF OPERATIONS
 
 Net Interest Income
 Second quarter 2005 compared with second quarter 2004
   Six-month period 2005 compared with six-month period 2004
   Net Interest Margin
 Second quarter 2005 compared with second quarter 2004
  6




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BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
 Six-month period 2005 compared with six-month period 2004
  Average Earning Assets
 Second quarter 2005 compared with second quarter 2004
  Six-month period 2005 compared with six-month period 2004
  Average Loans and Leases
 Second quarter 2005 compared with second quarter 2004
  Six-month period 2005 compared with six-month period 2004
  Average Interest-Bearing Deposits and Liabilities
 Second quarter 2005 compared with second quarter 2004
  7




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BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
  Six-month period 2005 compared with six-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 June 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
    
    $
    5,172
    
    
    $
    21
    
    
    
    1.63
    %
    
    $
    5,975
    
    
    $
    14
    
    
    
    0.94
    %Foreign
    
    
    336,239
    
    
    
    2,497
    
    
    
    2.98
    
    
    
    235,557
    
    
    
    657
    
    
    
    1.12Total interest-bearing deposits in other banks
    
    
    341,411
    
    
    
    2,518
    
    
    
    2.96
    
    
    
    241,532
    
    
    
    671
    
    
    
    1.12Federal funds sold and securities purchased under
agreements to resell
    
    
    408,782
    
    
    
    3,035
    
    
    
    2.98
    
    
    
    222,312
    
    
    
    577
    
    
    
    1.04Trading assets
    
    
    5,032
    
    
    
    17
    
    
    
    1.36
    
    
    
    7,727
    
    
    
    14
    
    
    
    0.73Securities available for sale (2):Taxable
    
    
    8,843,371
    
    
    
    81,136
    
    
    
    3.68
    
    
    
    5,997,423
    
    
    
    50,885
    
    
    
    3.41Exempt from Federal income taxes
    
    
    54,610
    
    
    
    727
    
    
    
    5.34
    
    
    
    7,501
    
    
    
    135
    
    
    
    7.24Total securities available for sale
    
    
    8,897,981
    
    
    
    81,863
    
    
    
    3.69
    
    
    
    6,004,924
    
    
    
    51,020
    
    
    
    3.42Loans and leases (3)(4):Domestic
    
    
    33,203,743
    
    
    
    498,291
    
    
    
    6.02
    
    
    
    26,392,660
    
    
    
    360,370
    
    
    
    5.49Foreign
    
    
    390,084
    
    
    
    6,354
    
    
    
    6.53
    
    
    
    354,337
    
    
    
    5,790
    
    
    
    6.57Total loans and leases
    
    
    33,593,827
    
    
    
    504,645
    
    
    
    6.03
    
    
    
    26,746,997
    
    
    
    366,160
    
    
    
    5.51Other interest earning assets
    
    
    226,621
    
    
    
    2,386
    
    
    
    4.22
    
    
    
    158,218
    
    
    
    1,646
    
    
    
    4.18Total earning assets
    
    
    43,473,654
    
    
    
    594,464
    
    
    
    5.48
    
    
    
    33,381,710
    
    
    
    420,088
    
    
    
    5.06Noninterest-bearing assets:Cash and due from banks
    
    
    1,808,272
    
    
    
    
    
    
    
    
    
    
    
    1,441,906Premises and equipment
    
    
    682,237
    
    
    
    
    
    
    
    
    
    
    
    526,005Other intangibles
    
    
    249,990
    
    
    
    
    
    
    
    
    
    
    
    178,559Goodwill
    
    
    4,315,324
    
    
    
    
    
    
    
    
    
    
    
    3,228,832Other assets
    
    
    1,286,940
    
    
    
    
    
    
    
    
    
    
    
    586,480Total noninterest-bearing assets
    
    
    8,342,763
    
    
    
    
    
    
    
    
    
    
    
    5,961,782Total assets
    
    $
    51,816,417
    
    
    
    
    
    
    
    
    
    
    $
    39,343,492LIABILITIES AND STOCKHOLDERS EQUITYInterest-bearing deposits and liabilities:Deposits:Domestic:Interest-bearing demand
    
    $
    353,790
    
    
    $
    398
    
    
    
    0.45
    %
    
    $
    302,737
    
    
    $
    69
    
    
    
    0.09
    %Savings
    
    
    12,544,066
    
    
    
    27,297
    
    
    
    0.87
    
    
    
    11,035,985
    
    
    
    15,724
    
    
    
    0.57Time
    
    
    10,393,075
    
    
    
    66,713
    
    
    
    2.57
    
    
    
    6,718,142
    
    
    
    25,141
    
    
    
    1.51Foreign
    
    
    1,488,887
    
    
    
    8,907
    
    
    
    2.40
    
    
    
    1,114,692
    
    
    
    2,655
    
    
    
    0.96Total interest-bearing deposits
    
    
    24,779,818
    
    
    
    103,315
    
    
    
    1.67
    
    
    
    19,171,556
    
    
    
    43,589
    
    
    
    0.91Short-term borrowings
    
    
    3,129,366
    
    
    
    22,645
    
    
    
    2.90
    
    
    
    2,187,174
    
    
    
    5,566
    
    
    
    1.02Long-term debt
    
    
    6,687,876
    
    
    
    72,278
    
    
    
    4.33
    
    
    
    4,582,180
    
    
    
    48,452
    
    
    
    4.25Total interest-bearing deposits and liabilities
    
    
    34,597,060
    
    
    
    198,238
    
    
    
    2.30
    
    
    
    25,940,910
    
    
    
    97,607
    
    
    
    1.51Interest rate spread
    
    
    
    
    
    
    
    
    
    
    3.18
    %
    
    
    
    
    
    
    
    
    
    
    3.55
    %Noninterest-bearing deposits
    
    
    10,219,718
    
    
    
    
    
    
    
    
    
    
    
    7,945,430Other liabilities
    
    
    1,092,795
    
    
    
    
    
    
    
    
    
    
    
    1,041,611Total liabilities
    
    
    45,909,573
    
    
    
    
    
    
    
    
    
    
    
    34,927,951Stockholders equity
    
    
    5,906,844
    
    
    
    
    
    
    
    
    
    
    
    4,415,541Total liabilities and stockholders equity
    
    $
    51,816,417
    
    
    
    
    
    
    
    
    
    
    $
    39,343,492Impact of noninterest-bearing sources
    
    
    
    
    
    
    
    
    
    
    0.48
    %
    
    
    
    
    
    
    
    
    
    
    0.33
    %Net interest income and margin on total earning assets
    
    
    
    
    
    
    396,226
    
    
    
    3.66
    
    
    
    
    
    
    
    322,481
    
    
    
    3.88
    %Tax equivalent adjustment
    
    
    
    
    
    
    1,308
    
    
    
    
    
    
    
    
    
    
    
    220Net interest income
    
    
    
    
    
    $
    394,918
    
    
    
    
    
    
    
    
    
    
    $
    322,261
 
 (1)
    
    Annualized.(2)
    
    Average debt securities available for sale were computed based on amortized costs,
excluding the effects of SFAS No. 115 adjustments.(3)
    
    Nonaccruing 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 $8.4 million and $11.0
million for the three months ended June 30, 2005 and 2004, respectively. 9




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##### Table of Contents



BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
 Six Months Ended June 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
    
    $
    5,511
    
    
    $
    36
    
    
    
    1.32
    %
    
    $
    6,585
    
    
    $
    23
    
    
    
    0.70
    %Foreign
    
    
    340,857
    
    
    
    4,835
    
    
    
    2.86
    
    
    
    265,718
    
    
    
    1,463
    
    
    
    1.11Total interest-bearing deposits in other banks
    
    
    346,368
    
    
    
    4,871
    
    
    
    2.84
    
    
    
    272,303
    
    
    
    1,486
    
    
    
    1.10Federal funds sold and securities purchased under
agreements to resell
    
    
    469,504
    
    
    
    6,253
    
    
    
    2.69
    
    
    
    228,103
    
    
    
    1,179
    
    
    
    1.04Trading assets
    
    
    4,974
    
    
    
    31
    
    
    
    1.26
    
    
    
    11,373
    
    
    
    28
    
    
    
    0.50Securities available for sale (2):Taxable
    
    
    8,568,060
    
    
    
    155,736
    
    
    
    3.67
    
    
    
    5,912,375
    
    
    
    101,307
    
    
    
    3.45Exempt from Federal income taxes
    
    
    54,623
    
    
    
    1,453
    
    
    
    5.36
    
    
    
    7,464
    
    
    
    269
    
    
    
    7.25Total securities available for sale
    
    
    8,622,683
    
    
    
    157,189
    
    
    
    3.68
    
    
    
    5,919,839
    
    
    
    101,576
    
    
    
    3.45Loans and leases (3)(4):Domestic
    
    
    32,791,996
    
    
    
    968,743
    
    
    
    5.96
    
    
    
    25,993,269
    
    
    
    718,557
    
    
    
    5.56Foreign
    
    
    381,262
    
    
    
    12,652
    
    
    
    6.69
    
    
    
    351,041
    
    
    
    11,576
    
    
    
    6.63Total loans and leases
    
    
    33,173,258
    
    
    
    981,395
    
    
    
    5.97
    
    
    
    26,344,310
    
    
    
    730,133
    
    
    
    5.57Other interest earning assets
    
    
    220,417
    
    
    
    4,218
    
    
    
    3.86
    
    
    
    157,218
    
    
    
    3,095
    
    
    
    3.96Total earning assets
    
    
    42,837,204
    
    
    
    1,153,957
    
    
    
    5.43
    
    
    
    32,933,146
    
    
    
    837,497
    
    
    
    5.11Noninterest-bearing assets:Cash and due from banks
    
    
    1,765,764
    
    
    
    
    
    
    
    
    
    
    
    1,408,127Premises and equipment
    
    
    683,304
    
    
    
    
    
    
    
    
    
    
    
    527,799Other intangibles
    
    
    256,834
    
    
    
    
    
    
    
    
    
    
    
    181,459Goodwill
    
    
    4,315,451
    
    
    
    
    
    
    
    
    
    
    
    3,228,589Other assets
    
    
    1,224,091
    
    
    
    
    
    
    
    
    
    
    
    560,862Total noninterest-bearing assets
    
    
    8,245,444
    
    
    
    
    
    
    
    
    
    
    
    5,906,836Total assets
    
    $
    51,082,648
    
    
    
    
    
    
    
    
    
    
    $
    38,839,982LIABILITIES AND STOCKHOLDERS EQUITYInterest-bearing deposits and liabilities:Deposits:Domestic:Interest-bearing demand
    
    $
    361,599
    
    
    $
    882
    
    
    
    0.49
    %
    
    $
    308,384
    
    
    $
    138
    
    
    
    0.09
    %Savings
    
    
    12,682,345
    
    
    
    49,586
    
    
    
    0.79
    
    
    
    10,928,278
    
    
    
    31,465
    
    
    
    0.58Time
    
    
    9,895,364
    
    
    
    117,955
    
    
    
    2.40
    
    
    
    6,717,683
    
    
    
    50,623
    
    
    
    1.52Foreign
    
    
    1,463,624
    
    
    
    15,833
    
    
    
    2.18
    
    
    
    1,055,886
    
    
    
    4,799
    
    
    
    0.91Total interest-bearing deposits
    
    
    24,402,932
    
    
    
    184,256
    
    
    
    1.52
    
    
    
    19,010,231
    
    
    
    87,025
    
    
    
    0.92Short-term borrowings
    
    
    3,189,293
    
    
    
    42,371
    
    
    
    2.68
    
    
    
    2,158,874
    
    
    
    10,979
    
    
    
    1.02Long-term debt
    
    
    6,460,665
    
    
    
    135,416
    
    
    
    4.23
    
    
    
    4,452,738
    
    
    
    95,729
    
    
    
    4.32Total interest-bearing deposits and liabilities
    
    
    34,052,890
    
    
    
    362,043
    
    
    
    2.14
    
    
    
    25,621,843
    
    
    
    193,733
    
    
    
    1.52Interest rate spread
    
    
    
    
    
    
    
    
    
    
    3.29
    %
    
    
    
    
    
    
    
    
    
    
    3.59
    %Noninterest-bearing deposits
    
    
    10,101,461
    
    
    
    
    
    
    
    
    
    
    
    7,764,441Other liabilities
    
    
    1,074,747
    
    
    
    
    
    
    
    
    
    
    
    1,082,464Total liabilities
    
    
    45,229,098
    
    
    
    
    
    
    
    
    
    
    
    34,468,748Stockholders equity
    
    
    5,853,550
    
    
    
    
    
    
    
    
    
    
    
    4,371,234Total liabilities and stockholders equity
    
    $
    51,082,648
    
    
    
    
    
    
    
    
    
    
    $
    38,839,982Impact of noninterest-bearing sources
    
    
    
    
    
    
    
    
    
    
    0.44
    %
    
    
    
    
    
    
    
    
    
    
    0.34
    %Net interest income and margin on total earning assets
    
    
    
    
    
    
    791,914
    
    
    
    3.73
    %
    
    
    
    
    
    
    643,764
    
    
    
    3.93
    %Tax equivalent adjustment
    
    
    
    
    
    
    2,573
    
    
    
    
    
    
    
    
    
    
    
    478Net interest income
    
    
    
    
    
    $
    789,341
    
    
    
    
    
    
    
    
    
    
    $
    643,286
 
 (1)
    
    Annualized.(2)
    
    Average debt securities available for sale were computed based on amortized costs,
excluding the effects of SFAS No. 115 adjustments.(3)
    
    Nonaccruing 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 $15.4 million and $21.5
million for the six months ended June 30, 2005 and 2004, respectively. 10




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##### Table of Contents



BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
 
 Noninterest Income
 Three Months Ended June 30,
    
    
    Change2005
    
    
    2004
    
    
    $
    
    
    %(Dollars in thousands)Service charges on deposit accounts
    
    $
    48,067
    
    
    $
    40,525
    
    
    $
    7,542
    
    
    
    18.6
    %Trust and investment services income
    
    
    11,775
    
    
    
    10,054
    
    
    
    1,721
    
    
    
    17.1Other service charges and fees
    
    
    48,218
    
    
    
    36,872
    
    
    
    11,346
    
    
    
    30.8Net gains (losses) on sales of securities
available for sale
    
    
    (3
    )
    
    
    691
    
    
    
    (694
    )
    
    
    Vehicle and equipment operating lease income
    
    
    5,573
    
    
    
    4,215
    
    
    
    1,358
    
    
    
    32.2Other
    
    
    19,579
    
    
    
    17,664
    
    
    
    1,915
    
    
    
    10.8Total noninterest income
    
    $
    133,209
    
    
    $
    110,021
    
    
    $
    23,188
    
    
    
    21.1
    %
 Six Months Ended June 30,
    
    
    Change2005
    
    
    2004
    
    
    $
    
    
    %(Dollars in thousands)Service charges on deposit accounts
    
    $
    91,653
    
    
    $
    81,354
    
    
    $
    10,299
    
    
    
    12.7
    %Trust and investment services income
    
    
    24,839
    
    
    
    20,356
    
    
    
    4,483
    
    
    
    22.0Other service charges and fees
    
    
    94,249
    
    
    
    74,045
    
    
    
    20,204
    
    
    
    27.3Net gains on sales of securities available for sale
    
    
    415
    
    
    
    1,058
    
    
    
    (643
    )
    
    
    (60.8
    )Vehicle and equipment operating lease income
    
    
    11,353
    
    
    
    5,069
    
    
    
    6,284
    
    
    
    124.0Other
    
    
    33,496
    
    
    
    29,610
    
    
    
    3,886
    
    
    
    13.1Total noninterest income
    
    $
    256,005
    
    
    $
    211,492
    
    
    $
    44,513
    
    
    
    21.0
    %
 Second quarter 2005 compared with second quarter 2004
    Six-month period 2005 compared with six-month period 2004
     11




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##### Table of Contents



BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
 
 Noninterest Expense
 Three Months Ended June 30
    
    
    Change2005
    
    
    2004
    
    
    $
    
    
    %(Dollars in thousands)Personnel:Salaries and wages
    
    $
    105,538
    
    
    $
    83,433
    
    
    $
    22,105
    
    
    
    26.5
    %Employee benefits
    
    
    42,005
    
    
    
    34,609
    
    
    
    7,396
    
    
    
    21.4Total personnel expense
    
    
    147,543
    
    
    
    118,042
    
    
    
    29,501
    
    
    
    25.0Occupancy
    
    
    28,373
    
    
    
    21,790
    
    
    
    6,583
    
    
    
    30.2Outside services
    
    
    26,637
    
    
    
    21,036
    
    
    
    5,601
    
    
    
    26.6Intangible amortization
    
    
    9,982
    
    
    
    5,764
    
    
    
    4,218
    
    
    
    73.2Equipment
    
    
    15,177
    
    
    
    12,008
    
    
    
    3,169
    
    
    
    26.4Depreciation  vehicle and equipment operating leases
    
    
    4,828
    
    
    
    4,218
    
    
    
    610
    
    
    
    14.5Restructuring and integration costs
    
    
    
    
    
    
    2,754
    
    
    
    (2,754
    )
    
    
    (100.0
    )Stationery and supplies
    
    
    7,542
    
    
    
    6,154
    
    
    
    1,388
    
    
    
    22.6Advertising and promotions
    
    
    7,672
    
    
    
    6,452
    
    
    
    1,220
    
    
    
    18.9Other
    
    
    35,831
    
    
    
    34,006
    
    
    
    1,825
    
    
    
    5.4Total noninterest expense
    
    $
    283,585
    
    
    $
    232,224
    
    
    $
    51,361
    
    
    
    22.1
    %
 Six Months Ended June 30,
    
    
    Change2005
    
    
    2004
    
    
    $
    
    
    %(Dollars in thousands)Personnel:Salaries and wages
    
    $
    210,477
    
    
    $
    166,888
    
    
    $
    43,589
    
    
    
    26.1
    %Employee benefits
    
    
    90,356
    
    
    
    70,846
    
    
    
    19,510
    
    
    
    27.5Total personnel expense
    
    
    300,833
    
    
    
    237,734
    
    
    
    63,099
    
    
    
    26.5Occupancy
    
    
    56,765
    
    
    
    43,405
    
    
    
    13,360
    
    
    
    30.8Outside services
    
    
    51,079
    
    
    
    41,513
    
    
    
    9,566
    
    
    
    23.0Intangible amortization
    
    
    19,962
    
    
    
    11,527
    
    
    
    8,435
    
    
    
    73.2Equipment
    
    
    29,674
    
    
    
    23,455
    
    
    
    6,219
    
    
    
    26.5Depreciation  vehicle and equipment operating leases
    
    
    9,849
    
    
    
    4,904
    
    
    
    4,945
    
    
    
    100.8Restructuring and integration costs
    
    
    5,350
    
    
    
    2,754
    
    
    
    2,596
    
    
    
    94.3Stationery and supplies
    
    
    16,013
    
    
    
    12,318
    
    
    
    3,695
    
    
    
    30.0Advertising and promotions
    
    
    14,820
    
    
    
    12,779
    
    
    
    2,041
    
    
    
    16.0Other
    
    
    71,332
    
    
    
    60,749
    
    
    
    10,583
    
    
    
    17.4Total noninterest expense
    
    $
    575,677
    
    
    $
    451,138
    
    
    $
    124,539
    
    
    
    27.6
    %
 Second quarter 2005 compared with second 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
  Six-month period 2005 compared with six-month period 2004
         
 INCOME TAXES
   
 OPERATING SEGMENTS
  13




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##### Table of Contents



BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
 Bank of the West
 Regional Banking
 Second quarter 2005 compared with second quarter 2004
    Six-month period 2005 as compared with six-month period 2004
    Commercial Banking
 Second quarter 2005 compared with second 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
 Six-month period 2005 as compared with six-month period 2004
    Consumer Finance
 Second quarter 2005 compared with second quarter 2004
   Six-month period 2005 as compared with six-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
 First Hawaiian Bank
 Retail Banking
 Second quarter 2005 compared with second quarter 2004
   Six-month period 2005 as compared with six-month period 2004
   Consumer Finance
 Second quarter 2005 compared with second quarter 2004
   Six-month period 2005 as compared with six-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
 Commercial Banking
 Second quarter 2005 compared with second quarter 2004
   Six-month period 2005 as compared with six-month period 2004
   Financial Management
 Second quarter 2005 compared with second quarter 2004
  Six-month period 2005 as compared with six-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.
 17




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##### Table of Contents



BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
 
 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
  June 30, 2005
    
    
    December 31, 2004
    
    
    June 30, 2004(Dollars in thousands)Nonperforming Assets:Nonaccrual:Commercial, financial and agricultural
    
    $
    54,519
    
    
    $
    51,793
    
    
    $
    60,266Real estate:Commercial
    
    
    43,748
    
    
    
    47,385
    
    
    
    40,820Construction
    
    
    9,632
    
    
    
    2,386
    
    
    
    Residential
    
    
    7,568
    
    
    
    6,862
    
    
    
    6,913Total real estate loans
    
    
    60,948
    
    
    
    56,633
    
    
    
    47,733Consumer
    
    
    2,751
    
    
    
    4,477
    
    
    
    2,658Lease financing
    
    
    6,173
    
    
    
    8,078
    
    
    
    7,328Foreign
    
    
    2,725
    
    
    
    4,138
    
    
    
    5,381Total nonaccrual loans and leases
    
    
    127,116
    
    
    
    125,119
    
    
    
    123,366Other real estate owned and repossessed personal property
    
    
    14,681
    
    
    
    21,653
    
    
    
    16,993Total nonperforming assets
    
    
    141,797
    
    
    $
    146,772
    
    
    $
    140,359Past due loans and leases (1):Commercial, financial and agricultural
    
    $
    12,509
    
    
    $
    6,140
    
    
    $
    18,082Real estate:Commercial
    
    
    7,280
    
    
    
    2,119
    
    
    
    7,912Construction
    
    
    866
    
    
    
    506
    
    
    
    Residential
    
    
    1,619
    
    
    
    1,112
    
    
    
    796Total real estate loans
    
    
    9,765
    
    
    
    3,737
    
    
    
    8,708Consumer
    
    
    1,568
    
    
    
    2,243
    
    
    
    1,860Lease financing
    
    
    
    
    
    
    79
    
    
    
    Foreign
    
    
    448
    
    
    
    216
    
    
    
    192Total past due loans and leases
    
    $
    24,290
    
    
    $
    12,415
    
    
    $
    28,842Accruing Restructured Loans and leases:Commercial, financial and agricultural
    
    
    21
    
    
    
    36
    
    
    
    48Commercial real estate
    
    
    396
    
    
    
    429
    
    
    
    436Total accruing restructured loans and leases
    
    $
    417
    
    
    $
    465
    
    
    $
    484Nonperforming assets to total loans and leases and other real estate owned and
repossessed personal property (end of period):Excluding past due loans and leases
    
    
    0.42
    %
    
    
    0.45
    %
    
    
    0.52
    %Including past due loans and leases
    
    
    0.49
    
    
    
    0.49
    
    
    
    0.62Nonperforming assets to total assets (end of period):Excluding past due loans and leases
    
    
    0.27
    
    
    
    0.29
    
    
    
    0.35Including past due loans and leases
    
    
    0.32
    
    
    
    0.32
    
    
    
    0.42
 
 (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
principal risk categories where 1 is no risk and 10 is loss. We continue efforts to
decrease our exposure to customers in the weaker 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.
    
    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.
    
    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 33.4% of our lease financing portfolio and 6.2% of our
combined lease financing and consumer loans at June 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.
 20




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##### Table of Contents



BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
   
 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
  June 30,(Dollars in millions)
    
    2005
    
    
    2004Federal Reserve Discount Window
    
    $
    673
    
    
    $
    618Federal Home Loan Banks
    
    
    882
    
    
    
    1,752Securities Available for Repurchase Agreements
    
    
    4,574
    
    
    
    3,016Total
    
    $
    6,129
    
    
    $
    5,386
      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
  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
 The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain Investments
 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
    
    $
    1,646.1
    
    
    $
    1,666.0
    
    
    $
    1,675.1
    
    
    $
    1,670.1
    
    
    $
    1,653.9
    
    
    $
    1,593.4Difference from flat
    
    
    (24.0
    )
    
    
    (4.1
    )
    
    
    5.0
    
    
    
    
    
    
    
    (16.2
    )
    
    
    (76.7
    )% variance
    
    
    (1.4
    )%
    
    
    (0.2
    )%
    
    
    0.3
    %
    
    
    
    %
    
    
    (1.0
    )%
    
    
    (4.6
    )%
  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
    June 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
    
    $
    (10,463
    )
    
    $
    4,220
    
    
    $
    812,516
    
    
    $
    76,406
    
    
    $
    24,123
    
    
    $
    39,587
    
    
    $
    100,905
    
    
    $
    107,073
    
    
    $
    464,422Weighted Avg. Pay Rates
    
    
    
    
    
    
    
    
    
    
    4.69
    %
    
    
    2.81
    %
    
    
    4.99
    %
    
    
    4.69
    %
    
    
    5.34
    %
    
    
    4.31
    %
    
    
    4.92
    %Weighted Avg. Receive Rates
    
    
    
    
    
    
    
    
    
    
    3.67
    %
    
    
    3.10
    %
    
    
    2.82
    %
    
    
    3.51
    %
    
    
    5.03
    %
    
    
    3.30
    %
    
    
    3.61
    %Receive-Fixed Swaps:Contractual Maturities
    
    
    20,233
    
    
    
    22,668
    
    
    $
    812,516
    
    
    $
    76,823
    
    
    $
    23,706
    
    
    $
    39,587
    
    
    $
    100,905
    
    
    $
    107,073
    
    
    $
    464,422Weighted Avg. Pay Rates
    
    
    
    
    
    
    
    
    
    
    3.70
    %
    
    
    3.11
    %
    
    
    3.38
    %
    
    
    3.55
    %
    
    
    5.05
    %
    
    
    3.30
    %
    
    
    3.62
    %Weighted Avg. Receive Rates
    
    
    
    
    
    
    
    
    
    
    4.95
    %
    
    
    3.04
    %
    
    
    4.46
    %
    
    
    4.99
    %
    
    
    5.57
    %
    
    
    4.64
    %
    
    
    5.23
    %Pay-Fixed Swaps(Forward Value Dated):Contractual Maturities
    
    
    (873
    )
    
    
    47
    
    
    $
    33,570
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    33,570Weighted Avg. Pay Rates
    
    
    
    
    
    
    
    
    
    
    4.98
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4.98
    %Weighted Avg. Receive
Rates(1)
    
    
    
    
    
    
    
    
    
    NA
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    NAReceive-Fixed Swaps(Forward Value Dated):Contractual Maturities
    
    
    1,825
    
    
    
    1,825
    
    
    $
    33,570
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    33,570Weighted Avg. Pay Rates(1)
    
    
    
    
    
    
    
    
    
    NA
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    NAWeighted Avg. Receive Rates
    
    
    
    
    
    
    
    
    
    
    5.88
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5.88
    %Caps/Collars:Contractual Maturities
    
    
    
    
    
    
    227
    
    
    $
    281,154
    
    
    $
    209,657
    
    
    $
    
    
    
    $
    64,250
    
    
    $
    3,821
    
    
    $
    1,440
    
    
    $
    1,986Weighted Avg. Strike Rates
    
    
    
    
    
    
    
    
    
    
    4.18
    %
    
    
    3.93
    %
    
    
    
    %
    
    
    4.85
    %
    
    
    5.18
    %
    
    
    4.50
    %
    
    
    6.83
    %Weighted Floor Rates
    
    
    
    
    
    
    
    
    
    
    4.77
    %
    
    
    
    %
    
    
    
    %
    
    
    
    %
    
    
    
    %
    
    
    
    %
    
    
    4.77
    %Total interest rate contracts
held for trading purposes
    
    $
    10,722
    
    
    $
    28,987
    
    
    $
    1,973,326
 
 (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 June 30,
    
    
    Six Months Ended June 30,(Dollars in thousands)
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Interest incomeLoans
    
    $
    476,232
    
    
    $
    337,039
    
    
    $
    924,120
    
    
    $
    669,615Lease financing
    
    
    27,325
    
    
    
    28,941
    
    
    
    55,142
    
    
    
    60,121Securities available for sale
    
    
    81,644
    
    
    
    50,980
    
    
    
    156,750
    
    
    
    101,496Other
    
    
    7,955
    
    
    
    2,908
    
    
    
    15,372
    
    
    
    5,787Total interest income
    
    
    593,156
    
    
    
    419,868
    
    
    
    1,151,384
    
    
    
    837,019Interest expenseDeposits
    
    
    103,315
    
    
    
    43,589
    
    
    
    184,256
    
    
    
    87,025Short-term borrowings
    
    
    22,645
    
    
    
    5,566
    
    
    
    42,371
    
    
    
    10,979Long-term debt
    
    
    72,278
    
    
    
    48,452
    
    
    
    135,416
    
    
    
    95,729Total interest expense
    
    
    198,238
    
    
    
    97,607
    
    
    
    362,043
    
    
    
    193,733Net interest income
    
    
    394,918
    
    
    
    322,261
    
    
    
    789,341
    
    
    
    643,286Provision for loan and lease losses
    
    
    3,224
    
    
    
    11,900
    
    
    
    14,324
    
    
    
    30,765Net interest income after provision for
loan and lease losses
    
    
    391,694
    
    
    
    310,361
    
    
    
    775,017
    
    
    
    612,521Noninterest incomeService charges on deposit accounts
    
    
    48,067
    
    
    
    40,525
    
    
    
    91,653
    
    
    
    81,354Trust and investment services income
    
    
    11,775
    
    
    
    10,054
    
    
    
    24,839
    
    
    
    20,356Other service charges and fees
    
    
    48,218
    
    
    
    36,872
    
    
    
    94,249
    
    
    
    74,045Net gains (losses) on securities available for sale
    
    
    (3
    )
    
    
    691
    
    
    
    415
    
    
    
    1,058Vehicle and equipment operating lease income
    
    
    5,573
    
    
    
    4,215
    
    
    
    11,353
    
    
    
    5,069Other
    
    
    19,579
    
    
    
    17,664
    
    
    
    33,496
    
    
    
    29,610Total noninterest income
    
    
    133,209
    
    
    
    110,021
    
    
    
    256,005
    
    
    
    211,492Noninterest expenseSalaries and wages
    
    
    105,538
    
    
    
    83,433
    
    
    
    210,477
    
    
    
    166,888Employee benefits
    
    
    42,005
    
    
    
    34,609
    
    
    
    90,356
    
    
    
    70,846Occupancy
    
    
    28,373
    
    
    
    21,790
    
    
    
    56,765
    
    
    
    43,405Outside services
    
    
    26,637
    
    
    
    21,036
    
    
    
    51,079
    
    
    
    41,513Intangible amortization
    
    
    9,982
    
    
    
    5,764
    
    
    
    19,962
    
    
    
    11,527Equipment
    
    
    15,177
    
    
    
    12,008
    
    
    
    29,674
    
    
    
    23,455Depreciation-vehicle and equipment operating leases
    
    
    4,828
    
    
    
    4,218
    
    
    
    9,849
    
    
    
    4,904Restructuring and integration costs
    
    
    
    
    
    
    2,754
    
    
    
    5,350
    
    
    
    2,754Stationery and supplies
    
    
    7,542
    
    
    
    6,154
    
    
    
    16,013
    
    
    
    12,318Advertising and promotions
    
    
    7,672
    
    
    
    6,452
    
    
    
    14,820
    
    
    
    12,779Other
    
    
    35,831
    
    
    
    34,006
    
    
    
    71,332
    
    
    
    60,749Total noninterest expense
    
    
    283,585
    
    
    
    232,224
    
    
    
    575,677
    
    
    
    451,138Income before income taxes
    
    
    241,318
    
    
    
    188,158
    
    
    
    455,345
    
    
    
    372,875Provision for income taxes
    
    
    92,169
    
    
    
    73,401
    
    
    
    169,592
    
    
    
    145,066Net income
    
    $
    149,149
    
    
    $
    114,757
    
    
    $
    285,753
    
    
    $
    227,809
 
 27




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##### Table of Contents



BancWest Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
 June 30, 2005
    
    
    December 31, 2004
    
    
    June 30, 2004(Dollars in thousands, except share data)AssetsCash and due from banks
    
    $
    1,809,222
    
    
    $
    1,676,056
    
    
    $
    1,702,563Interest-bearing deposits in other banks
    
    
    513,655
    
    
    
    16,531
    
    
    
    267,947Federal funds sold and securities purchased under
agreements to resell
    
    
    165,100
    
    
    
    937,875
    
    
    
    245,500Trading assets
    
    
    4,442
    
    
    
    4,685
    
    
    
    4,726Securities available for sale
    
    
    9,024,593
    
    
    
    7,954,563
    
    
    
    5,820,727Loans held for sale
    
    
    78,076
    
    
    
    71,402
    
    
    
    65,031Loans and leases:Loans and leases
    
    
    33,956,423
    
    
    
    32,688,843
    
    
    
    27,189,823Less allowance for loan and lease losses
    
    
    423,294
    
    
    
    436,391
    
    
    
    396,101Net loans and leases
    
    
    33,533,129
    
    
    
    32,252,452
    
    
    
    26,793,722Vehicle and equipment operating leases, net
    
    
    113,751
    
    
    
    132,539
    
    
    
    127,280Premises and equipment, net
    
    
    684,752
    
    
    
    684,783
    
    
    
    520,507Customers acceptance liability
    
    
    15,199
    
    
    
    12,841
    
    
    
    15,279Other intangibles, net
    
    
    251,629
    
    
    
    272,490
    
    
    
    175,830Goodwill
    
    
    4,315,692
    
    
    
    4,312,800
    
    
    
    3,229,771Other real estate owned and repossessed personal property
    
    
    14,681
    
    
    
    21,653
    
    
    
    16,993Other assets
    
    
    1,991,755
    
    
    
    1,703,356
    
    
    
    1,278,272Total assets
    
    $
    52,515,676
    
    
    $
    50,054,026
    
    
    $
    40,264,148Liabilities and Stockholders EquityDeposits:Interest-bearing
    
    $
    24,160,459
    
    
    $
    23,553,861
    
    
    $
    19,649,419Noninterest-bearing
    
    
    10,462,922
    
    
    
    10,059,918
    
    
    
    8,326,906Total deposits
    
    
    34,623,381
    
    
    
    33,613,779
    
    
    
    27,976,325Federal funds purchased and securities sold under
agreements to repurchase
    
    
    2,339,997
    
    
    
    2,050,344
    
    
    
    1,799,249Short-term borrowings
    
    
    1,681,120
    
    
    
    1,454,845
    
    
    
    574,089Acceptances outstanding
    
    
    15,199
    
    
    
    12,841
    
    
    
    15,279Long-term debt
    
    
    6,829,757
    
    
    
    6,181,040
    
    
    
    4,646,075Other liabilities
    
    
    1,022,877
    
    
    
    1,011,142
    
    
    
    822,123Total liabilities
    
    $
    46,512,331
    
    
    $
    44,323,991
    
    
    $
    35,833,140Stockholders equity:Class A common stock, par value $0.01 per shareAuthorized  150,000,000 sharesIssued and outstanding  106,859,123 shares at
June 30, 2005 and December 31, 2004 and
85,759,123 shares at June 30, 2004
    
    $
    1,069
    
    
    $
    1,069
    
    
    $
    858Additional paid-in capital
    
    
    4,475,087
    
    
    
    4,475,006
    
    
    
    3,419,927Retained earnings
    
    
    1,565,328
    
    
    
    1,279,575
    
    
    
    1,034,007Accumulated other comprehensive loss, net
    
    
    (38,139
    )
    
    
    (25,615
    )
    
    
    (23,784
    )Total stockholders equity
    
    
    6,003,345
    
    
    
    5,730,035
    
    
    
    4,431,008Total liabilities and stockholders equity
    
    $
    52,515,676
    
    
    $
    50,054,026
    
    
    $
    40,264,148
 
 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
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    285,753
    
    
    
    
    
    
    
    285,753Unrealized net losses on securities
available for sale arising during the
period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,940
    )
    
    
    (5,940
    )Reclassification of net realized gains on
securities available for sale included in
net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (245
    )
    
    
    (245
    )Unrealized net losses on cash flow
derivative hedges arising during the
period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,486
    )
    
    
    (2,486
    )Reclassification of net realized gains on
cash flow derivative hedges included in
net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,853
    )
    
    
    (3,853
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    285,753
    
    
    
    (12,524
    )
    
    
    273,229Other
    
    
    
    
    
    
    
    
    
    
    81
    
    
    
    
    
    
    
    
    
    
    
    81Balance, June 30, 2005
    
    
    106,859,123
    
    
    $
    1,069
    
    
    $
    4,475,087
    
    
    $
    1,565,328
    
    
    $
    (38,139
    )
    
    $
    6,003,345Balance, December 31, 2003
    
    
    85,759,123
    
    
    $
    858
    
    
    $
    3,419,927
    
    
    $
    806,198
    
    
    $
    35,889
    
    
    $
    4,262,872Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    227,809
    
    
    
    
    
    
    
    227,809Unrealized net losses on securities
available for sale arising during the
period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (49,293
    )
    
    
    (49,293
    )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
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,474
    )
    
    
    (3,474
    )Reclassification of net realized gains on
cash flow derivative hedges included in
net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,282
    )
    
    
    (6,282
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    227,809
    
    
    
    (59,673
    )
    
    
    168,136Balance, June 30, 2004
    
    
    85,759,123
    
    
    $
    858
    
    
    $
    3,419,927
    
    
    $
    1,034,007
    
    
    $
    (23,784
    )
    
    $
    4,431,008
  29




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##### Table of Contents



BancWest Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
 Six Months Ended June 30,2005
    
    
    2004(Dollars in thousands)Cash flows from operating activities:Net income
    
    $
    285,753
    
    
    $
    227,809Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
    
    
    57,608
    
    
    
    38,091Provision for loan and lease losses
    
    
    14,324
    
    
    
    30,765Net decrease in deferred income taxes
    
    
    (5,571
    )
    
    
    (211,538
    )Net decrease in trading assets
    
    
    243
    
    
    
    14,383Net increase in loans held for sale
    
    
    (6,674
    )
    
    
    (14,024
    )Net gains on sales of securities available for sale
    
    
    (415
    )
    
    
    (1,058
    )Net gains on sales of loans
    
    
    (3,348
    )
    
    
    (2,868
    )Net increase in interest receivable
    
    
    (17,375
    )
    
    
    (212
    )Net increase in interest payable
    
    
    32,635
    
    
    
    10,160Net decrease (increase) in prepaid expense
    
    
    8,638
    
    
    
    (1,541
    )Other
    
    
    (31,946
    )
    
    
    (80,806
    )Net cash provided by operating activities
    
    
    333,872
    
    
    
    9,161Cash flows from investing activities:Securities available for sale:Proceeds from prepayments and maturities
    
    
    1,457,594
    
    
    
    973,691Proceeds from the sales
    
    
    381,301
    
    
    
    282,394Purchases
    
    
    (2,927,834
    )
    
    
    (1,387,691
    )Proceeds from sales of loans
    
    
    158,864
    
    
    
    167,007Purchases of loans
    
    
    (1,633,865
    )
    
    
    (744,256
    )Net decrease (increase) in loans and leases resulting from originations and collections
    
    
    210,791
    
    
    
    (883,080
    )Net decrease (increase) in vehicle and equipment operating leases resulting from
originations and collections
    
    
    8,939
    
    
    
    (132,184
    )Purchases of premises and equipment
    
    
    (30,019
    )
    
    
    (14,551
    )Increase in investment in bank owned life insurance
    
    
    (226,277
    )
    
    
    (200,000
    )Other
    
    
    (54,607
    )
    
    
    (23,221
    )Net cash used in investing activities
    
    
    (2,655,113
    )
    
    
    (1,961,891
    )Cash flows from financing activities:Net increase in deposits
    
    
    1,009,602
    
    
    
    1,573,208Net increase in Federal funds purchased and securities sold
under agreements to repurchase
    
    
    289,653
    
    
    
    624,372Net increase (decrease) in short-term borrowings
    
    
    226,275
    
    
    
    (623,720
    )Proceeds from issuance of long-term debt
    
    
    1,285,036
    
    
    
    756,000Repayments of long-term debt
    
    
    (631,810
    )
    
    
    (332,911
    )Net cash provided by financing activities
    
    
    2,178,756
    
    
    
    1,996,949Net increase (decrease) in cash and cash equivalents
    
    
    (142,485
    )
    
    
    44,219Cash and cash equivalents at beginning of period
    
    
    2,630,462
    
    
    
    2,171,791Cash and cash equivalents at end of period
    
    $
    2,487,977
    
    
    $
    2,216,010Supplemental disclosures:Interest paid
    
    $
    329,409
    
    
    $
    183,573Income taxes paid
    
    $
    159,691
    
    
    $
    311,404Supplemental schedule of noncash investing and financing activities:Loans transferred to other real estate owned and repossessed personal property
    
    $
    2,180
    
    
    $
    4,548Loans 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 June 30, 2004
    
    
    353,028
    
    
    $
    43.91
    
    
    
    8.95Options outstanding as of December 31, 2004
    
    
    347,028
    
    
    $
    43.88
    
    
    
    8.44Granted
    
    
    193,000
    
    
    
    71.42Forfeited
    
    
    (2,000
    )
    
    
    65.94Options outstanding as of June 30, 2005
    
    
    538,028
    
    
    $
    53.67
    
    
    
    8.58
  Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(Dollars in thousands)Net Income (as reported)
    
    $
    149,149
    
    
    $
    114,757
    
    
    $
    285,753
    
    
    $
    227,809Add: Stock-based
compensation expense
recognized during period,
net of tax effects
    
    
    27
    
    
    
    24
    
    
    
    48
    
    
    
    48Less: Stock-based employee
compensation expense
determined under fair
value-based method, net of
taxes
    
    
    (293
    )
    
    
    (243
    )
    
    
    (537
    )
    
    
    (459
    )Pro Forma Net Income
    
    $
    148,883
    
    
    $
    114,538
    
    
    $
    285,264
    
    
    $
    227,398
 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
    
    
    914,367Intangibles
    
    
    96,021Other assets
    
    
    313,431Total Assets
    
    $
    6,405,219Liabilities and Stockholders EquityDeposits
    
    $
    4,511,754Debt
    
    
    603,318Other liabilities
    
    
    95,241Total Liabilities
    
    
    5,210,313Stockholders equity
    
    
    1,194,906Total Liabilities and Stockholders Equity
    
    $
    6,405,219
 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
    
    
    1,196Loans and leases
    
    
    27,104Premises and equipment
    
    
    (4,989
    )Other assets
    
    
    4,193Severance and employee relocation
    
    
    7,587Contract terminations
    
    
    5,496Identifiable intangibles
    
    
    (3,218
    )Deposits
    
    
    8,985Debt
    
    
    15,093Other liabilities and taxes
    
    
    6,154Estimated fair value adjustments related to net assets acquired
    
    
    67,601Estimated goodwill resulting from the merger with Community First
    
    $
    914,367
  (Unaudited)
    
    
    (Unaudited)(Dollars in thousands)
    
    Three Months Ended
    
    
    Six Months EndedJune 30, 2004
    
    
    June 30, 2004Net interest income
    
    $
    382,670
    
    
    $
    763,684Provision for loan and lease losses
    
    
    14,267
    
    
    
    35,497Noninterest income
    
    
    132,932
    
    
    
    256,985Noninterest expense
    
    
    284,108
    
    
    
    555,415Income before income taxes
    
    
    217,227
    
    
    
    429,757Provision for income taxes
    
    
    84,741
    
    
    
    167,197Net Income
    
    $
    132,486
    
    
    $
    262,560
  Severance and
    
    
    Contract
    
    
    Sublease 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
    
    
    30
    
    
    
    (314
    )
    
    
    
    
    
    
    401
    
    
    
    640
    
    
    
    1,763
    
    
    
    2,520Cash Payments
    
    
    (4,368
    )
    
    
    (4,661
    )
    
    
    (132
    )
    
    
    
    
    
    
    
    
    
    
    (165
    )
    
    
    (9,326
    )Balance, June 30, 2005
    
    $
    3,219
    
    
    $
    835
    
    
    $
    1,064
    
    
    $
    10,832
    
    
    $
    1,023
    
    
    $
    1,598
    
    
    $
    18,571
 34




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##### Table of Contents



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




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##### Table of Contents



BancWest Corporation and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  Cash Flow Hedges
     June 30, 2005
    
    
    December 31, 2004
    
    
    June 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
    
    $
    784,353
    
    
    $
    12,618
    
    
    $
    8,084
    
    
    $
    938,534
    
    
    $
    24,790
    
    
    $
    17,327
    
    
    $
    939,851
    
    
    $
    37,780
    
    
    $
    33,552Held for trading or free-standing:Interest rate swaps
    
    
    1,692,172
    
    
    
    28,760
    
    
    
    10,722
    
    
    
    1,502,706
    
    
    
    19,558
    
    
    
    7,856
    
    
    
    1,322,376
    
    
    
    19,390
    
    
    
    7,054Purchased interest rate options
    
    
    140,488
    
    
    
    227
    
    
    
    227
    
    
    
    143,251
    
    
    
    203
    
    
    
    203
    
    
    
    95,390
    
    
    
    101
    
    
    
    101Written interest rate options
    
    
    173,166
    
    
    
    
    
    
    
    (227
    )
    
    
    152,645
    
    
    
    
    
    
    
    (203
    )
    
    
    94,406
    
    
    
    
    
    
    
    (101
    )Forward interest rate options
    
    
    23,500
    
    
    
    
    
    
    
    (82
    )
    
    
    22,000
    
    
    
    
    
    
    
    (20
    )
    
    
    22,000
    
    
    
    
    
    
    
    (262
    )Commitments to purchase and sell foreign currencies
    
    
    464,412
    
    
    
    6,923
    
    
    
    827
    
    
    
    401,057
    
    
    
    9,533
    
    
    
    1,046
    
    
    
    534,392
    
    
    
    3,909
    
    
    
    73Purchased foreign exchange options
    
    
    3,222
    
    
    
    37
    
    
    
    37
    
    
    
    4,876
    
    
    
    217
    
    
    
    217
    
    
    
    26,550
    
    
    
    268
    
    
    
    268Written foreign exchange options
    
    
    3,222
    
    
    
    
    
    
    
    (37
    )
    
    
    4,876
    
    
    
    
    
    
    
    (217
    )
    
    
    26,550
    
    
    
    
    
    
    
    (268
    )
 36




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##### Table of Contents



BancWest Corporation and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 4. Securities Available for Sale
  June 30, 2005
    
    
    December 31, 2004
    
    
    June 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
    
    $
    200,808
    
    
    $
    398
    
    
    $
    (1,155
    )
    
    $
    200,051
    
    
    $
    266,174
    
    
    $
    263
    
    
    $
    (1,745
    )
    
    $
    264,692
    
    
    $
    188,879
    
    
    $
    283
    
    
    $
    (1,322
    )
    
    $
    187,840Government-sponsored agencies
    
    
    3,122,085
    
    
    
    2,169
    
    
    
    (22,339
    )
    
    
    3,101,915
    
    
    
    2,372,319
    
    
    
    1,374
    
    
    
    (14,868
    )
    
    
    2,358,825
    
    
    
    1,496,478
    
    
    
    3,053
    
    
    
    (11,058
    )
    
    
    1,488,473Mortgage and asset-backed securities:Government agencies
    
    
    194,266
    
    
    
    1,284
    
    
    
    (510
    )
    
    
    195,040
    
    
    
    229,827
    
    
    
    1,741
    
    
    
    (450
    )
    
    
    231,118
    
    
    
    104,884
    
    
    
    604
    
    
    
    (1,559
    )
    
    
    103,929Government-sponsored agencies
    
    
    3,196,036
    
    
    
    6,147
    
    
    
    (35,441
    )
    
    
    3,166,742
    
    
    
    3,185,857
    
    
    
    10,733
    
    
    
    (37,208
    )
    
    
    3,159,382
    
    
    
    2,313,550
    
    
    
    11,077
    
    
    
    (55,382
    )
    
    
    2,269,245Other
    
    
    639,859
    
    
    
    794
    
    
    
    (2,674
    )
    
    
    637,979
    
    
    
    487,250
    
    
    
    3,177
    
    
    
    (2,512
    )
    
    
    487,915
    
    
    
    579,993
    
    
    
    4,443
    
    
    
    (3,207
    )
    
    
    581,229Collateralized mortgage obligations:Government agencies
    
    
    157,791
    
    
    
    
    
    
    
    (2,372
    )
    
    
    155,419
    
    
    
    181,502
    
    
    
    
    
    
    
    (2,311
    )
    
    
    179,191
    
    
    
    197,054
    
    
    
    14
    
    
    
    (3,494
    )
    
    
    193,574Government-sponsored agencies
    
    
    620,643
    
    
    
    363
    
    
    
    (6,896
    )
    
    
    614,110
    
    
    
    603,173
    
    
    
    420
    
    
    
    (6,907
    )
    
    
    596,686
    
    
    
    576,762
    
    
    
    677
    
    
    
    (8,478
    )
    
    
    568,961Other
    
    
    840,387
    
    
    
    3,352
    
    
    
    (5,545
    )
    
    
    838,194
    
    
    
    568,724
    
    
    
    154
    
    
    
    (5,565
    )
    
    
    563,313
    
    
    
    376,241
    
    
    
    37
    
    
    
    (5,853
    )
    
    
    370,425State and political subdivisions
    
    
    58,681
    
    
    
    584
    
    
    
    (868
    )
    
    
    58,397
    
    
    
    56,081
    
    
    
    627
    
    
    
    (297
    )
    
    
    56,411
    
    
    
    7,765
    
    
    
    191
    
    
    
    (56
    )
    
    
    7,900Other
    
    
    59,091
    
    
    
    2
    
    
    
    (2,347
    )
    
    
    56,746
    
    
    
    59,311
    
    
    
    103
    
    
    
    (2,384
    )
    
    
    57,030
    
    
    
    51,473
    
    
    
    
    
    
    
    (2,322
    )
    
    
    49,151Total securities available for sale
    
    $
    9,089,647
    
    
    $
    15,093
    
    
    $
    (80,147
    )
    
    $
    9,024,593
    
    
    $
    8,010,218
    
    
    $
    18,592
    
    
    $
    (74,247
    )
    
    $
    7,954,563
    
    
    $
    5,893,079
    
    
    $
    20,379
    
    
    $
    (92,731
    )
    
    $
    5,820,727
 37




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##### Table of Contents



BancWest Corporation and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  June 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
    
    $
    (471
    )
    
    $
    76,008
    
    
    $
    (684
    )
    
    $
    93,623
    
    
    $
    (1,155
    )
    
    $
    169,631Government-sponsored agencies
    
    
    (14,770
    )
    
    
    2,119,127
    
    
    
    (7,569
    )
    
    
    542,167
    
    
    
    (22,339
    )
    
    
    2,661,294Mortgage and asset-backed securities:Government agencies
    
    
    (510
    )
    
    
    73,375
    
    
    
    
    
    
    
    
    
    
    
    (510
    )
    
    
    73,375Government-sponsored agencies
    
    
    (10,222
    )
    
    
    1,682,605
    
    
    
    (25,219
    )
    
    
    879,483
    
    
    
    (35,441
    )
    
    
    2,562,088Other
    
    
    (1,168
    )
    
    
    322,998
    
    
    
    (1,506
    )
    
    
    136,961
    
    
    
    (2,674
    )
    
    
    459,959Collateralized mortgage obligations:Government agencies
    
    
    (338
    )
    
    
    39,783
    
    
    
    (2,034
    )
    
    
    115,636
    
    
    
    (2,372
    )
    
    
    155,419Government-sponsored agencies
    
    
    (958
    )
    
    
    161,641
    
    
    
    (5,938
    )
    
    
    352,504
    
    
    
    (6,896
    )
    
    
    514,145Other
    
    
    (2,528
    )
    
    
    402,064
    
    
    
    (3,017
    )
    
    
    141,035
    
    
    
    (5,545
    )
    
    
    543,099States and political subdivisions
    
    
    (863
    )
    
    
    1,020
    
    
    
    (5
    )
    
    
    370
    
    
    
    (868
    )
    
    
    1,390Other
    
    
    (454
    )
    
    
    18,902
    
    
    
    (1,893
    )
    
    
    19,351
    
    
    
    (2,347
    )
    
    
    38,253Total securities available for sale
    
    $
    (32,282
    )
    
    $
    4,897,523
    
    
    $
    (47,865
    )
    
    $
    2,281,130
    
    
    $
    (80,147
    )
    
    $
    7,178,653
  Three Months Ended June 30,
    
    
    Six Months Ended June 30 ,2005
    
    
    2004
    
    
    2005
    
    
    2004(Dollars in thousands)Realized gains
    
    $
    3
    
    
    $
    691
    
    
    $
    422
    
    
    $
    1,059Realized losses
    
    
    (6
    )
    
    
    
    
    
    
    (7
    )
    
    
    (1
    )Realized net gains
    
    $
    (3
    )
    
    $
    691
    
    
    $
    415
    
    
    $
    1,058
 38




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##### Table of Contents



BancWest Corporation and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 5. Loans and Leases
  June 30, 2005
    
    
    December 31, 2004
    
    
    June 30, 2004Amount
    
    
    %
    
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %(Dollars in thousands)Commercial, financial and agricultural
    
    $
    5,988,395
    
    
    
    17.6
    %
    
    $
    6,027,376
    
    
    
    18.4
    %
    
    $
    4,738,271
    
    
    
    17.4
    %Real estate:Commercial
    
    
    6,860,866
    
    
    
    20.2
    
    
    
    6,706,882
    
    
    
    20.5
    
    
    
    5,286,412
    
    
    
    19.4Construction
    
    
    1,570,090
    
    
    
    4.6
    
    
    
    1,493,723
    
    
    
    4.6
    
    
    
    1,036,993
    
    
    
    3.8Residential
    
    
    7,689,252
    
    
    
    22.7
    
    
    
    6,700,462
    
    
    
    20.5
    
    
    
    5,479,017
    
    
    
    20.2Total real estate loans
    
    
    16,120,208
    
    
    
    47.5
    
    
    
    14,901,067
    
    
    
    45.6
    
    
    
    11,802,422
    
    
    
    43.4Consumer
    
    
    9,353,881
    
    
    
    27.6
    
    
    
    9,243,731
    
    
    
    28.3
    
    
    
    8,092,565
    
    
    
    29.8Lease financing
    
    
    2,115,097
    
    
    
    6.2
    
    
    
    2,132,578
    
    
    
    6.5
    
    
    
    2,192,436
    
    
    
    8.1Foreign loans
    
    
    378,842
    
    
    
    1.1
    
    
    
    384,091
    
    
    
    1.2
    
    
    
    364,129
    
    
    
    1.3Total loans and leases
    
    $
    33,956,423
    
    
    
    100.0
    %
    
    $
    32,688,843
    
    
    
    100.0
    %
    
    $
    27,189,823
    
    
    
    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 June 30,
    
    
    Six Months Ended June 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(Dollars in thousands)Balance at beginning of period
    
    $
    432,762
    
    
    $
    396,487
    
    
    $
    436,391
    
    
    $
    391,699Provision for loan and lease losses
    
    
    3,224
    
    
    
    11,900
    
    
    
    14,324
    
    
    
    30,765Loans and leases charged off:Commercial, financial and agricultural
    
    
    2,389
    
    
    
    2,179
    
    
    
    4,480
    
    
    
    4,316Real estate:Commercial
    
    
    516
    
    
    
    796
    
    
    
    824
    
    
    
    1,089Residential
    
    
    569
    
    
    
    54
    
    
    
    736
    
    
    
    74Consumer
    
    
    15,761
    
    
    
    13,552
    
    
    
    32,959
    
    
    
    27,066Lease financing
    
    
    3,175
    
    
    
    4,041
    
    
    
    7,246
    
    
    
    9,485Foreign
    
    
    362
    
    
    
    440
    
    
    
    709
    
    
    
    1,171Total loans and leases charged off
    
    
    22,772
    
    
    
    21,062
    
    
    
    46,954
    
    
    
    43,201Recoveries on loans and leases previously charged off:Commercial, financial and agricultural
    
    
    3,125
    
    
    
    2,418
    
    
    
    4,973
    
    
    
    4,873Real estate:Commercial
    
    
    310
    
    
    
    54
    
    
    
    716
    
    
    
    180Construction
    
    
    1
    
    
    
    34
    
    
    
    1
    
    
    
    68Residential
    
    
    201
    
    
    
    277
    
    
    
    398
    
    
    
    476Consumer
    
    
    4,712
    
    
    
    3,371
    
    
    
    8,801
    
    
    
    6,610Lease financing
    
    
    1,559
    
    
    
    2,513
    
    
    
    3,437
    
    
    
    4,278Foreign
    
    
    172
    
    
    
    109
    
    
    
    1,207
    
    
    
    353Total recoveries on loans and leases previously charged off
    
    
    10,080
    
    
    
    8,776
    
    
    
    19,533
    
    
    
    16,838Net charge-offs
    
    
    (12,692
    )
    
    
    (12,286
    )
    
    
    (27,421
    )
    
    
    (26,363
    )Balance at end of period
    
    $
    423,294
    
    
    $
    396,101
    
    
    $
    423,294
    
    
    $
    396,101
 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
    
    
    Financial
    
    
    
    
    
    
    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 June 30, 2005:
    
    $
    2,299
    
    
    $
    709
    
    
    $
    308
    
    
    $
    650
    
    
    $
    216
    
    
    $
    118
    
    
    $
    11
    
    
    $
    5
    
    
    $
    4,316
  (Dollars in thousands)Estimate for the six months ending
December 31, 2005
    
    $
    19,953Estimate 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 June 30, 2005:Core Deposits
    
    $
    330,206
    
    
    $
    88,572
    
    
    $
    241,634Other Intangible Assets
    
    
    11,101
    
    
    
    1,106
    
    
    
    9,995Total
    
    $
    341,307
    
    
    $
    89,678
    
    
    $
    251,629Balance 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 June 30, 2004:Core Deposits
    
    $
    230,538
    
    
    $
    54,708
    
    
    $
    175,830Total
    
    $
    230,538
    
    
    $
    54,708
    
    
    $
    175,830
 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-WeightedAssets:Bank of the West
    
    $
    3,516,231
    
    
    
    10.81
    %
    
    $
    1,301,265
    
    
    
    4.00
    %
    
    $
    1,951,897
    
    
    
    6.00
    %First Hawaiian Bank
    
    
    1,042,980
    
    
    
    13.62
    
    
    
    306,408
    
    
    
    4.00
    
    
    
    459,612
    
    
    
    6.00Total Capital to Risk-WeightedAssets:Bank of the West
    
    $
    4,037,327
    
    
    
    12.41
    %
    
    $
    2,602,530
    
    
    
    8.00
    %
    
    $
    3,253,162
    
    
    
    10.00
    %First Hawaiian Bank
    
    
    1,204,308
    
    
    
    15.72
    
    
    
    612,815
    
    
    
    8.00
    
    
    
    766,019
    
    
    
    10.00Tier 1 Capital to AverageAssets (leverage ratio) (1):Bank of the West
    
    $
    3,516,231
    
    
    
    9.26
    %
    
    $
    1,519,371
    
    
    
    4.00
    %
    
    $
    1,899,214
    
    
    
    5.00
    %First Hawaiian Bank
    
    
    1,042,980
    
    
    
    10.62
    
    
    
    392,865
    
    
    
    4.00
    
    
    
    491,081
    
    
    
    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
Benefits(Dollars in thousands)
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Service cost
    
    $
    2,956
    
    
    $
    2,260
    
    
    $
    378
    
    
    $
    381Interest cost
    
    
    6,727
    
    
    
    6,569
    
    
    
    582
    
    
    
    655Expected return on plan assets
    
    
    (9,675
    )
    
    
    (8,159
    )
    
    
    
    
    
    
    Amortization of prior service cost
    
    
    
    
    
    
    
    
    
    
    (281
    )
    
    
    (218
    )Recognized net actuarial loss
    
    
    3,778
    
    
    
    1,515
    
    
    
    166
    
    
    
    124Total benefit cost
    
    $
    3,786
    
    
    $
    2,185
    
    
    $
    845
    
    
    $
    942
  Pension Benefits
    
    
    Other Benefits(Dollars in thousands)
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Service cost
    
    $
    5,912
    
    
    $
    4,520
    
    
    $
    756
    
    
    $
    933Interest cost
    
    
    13,595
    
    
    
    13,137
    
    
    
    1,164
    
    
    
    1,309Expected return on plan assets
    
    
    (18,508
    )
    
    
    (16,318
    )
    
    
    
    
    
    
    Amortization of prior service cost
    
    
    
    
    
    
    
    
    
    
    (562
    )
    
    
    (218
    )Recognized net actuarial loss
    
    
    7,324
    
    
    
    3,030
    
    
    
    332
    
    
    
    241Total benefit cost
    
    $
    8,323
    
    
    $
    4,369
    
    
    $
    1,690
    
    
    $
    2,265
  Funded Pension BenefitsThree Months Ended June 30,
    
    
    Six Months Ended June 30,(Dollars in thousands)
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Service cost
    
    $
    2,475
    
    
    $
    1,761
    
    
    $
    4,950
    
    
    $
    3,521Interest cost
    
    
    5,570
    
    
    
    5,530
    
    
    
    11,242
    
    
    
    11,061Expected return on plan assets
    
    
    (9,675
    )
    
    
    (8,159
    )
    
    
    (18,508
    )
    
    
    (16,318
    )Recognized net actuarial loss
    
    
    3,005
    
    
    
    1,274
    
    
    
    5,923
    
    
    
    2,549Net
periodic benefit cost
    
    $
    1,375
    
    
    $
    406
    
    
    $
    3,607
    
    
    $
    813
 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
     Financial 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
    
    
    Financial
    
    
    
    
    
    
    Other
    
    
    Reconciling
    
    
    Consolidated(Dollars in millions)
    
    Banking
    
    
    Banking
    
    
    Finance
    
    
    Other(1)
    
    
    Banking
    
    
    Finance
    
    
    Banking
    
    
    Management
    
    
    Other(2)
    
    
    BancWest(3)
    
    
    Items(4)
    
    
    TotalsThree Months Ended June 30, 2005:Net interest income
    
    $
    182.7
    
    
    $
    88.6
    
    
    $
    55.9
    
    
    $
    16.5
    
    
    $
    71.5
    
    
    $
    19.8
    
    
    $
    8.3
    
    
    $
    
    
    
    $
    (6.1
    )
    
    $
    (42.3
    )
    
    $
    
    
    
    $
    394.9Noninterest income
    
    
    64.3
    
    
    
    21.9
    
    
    
    7.5
    
    
    
    4.4
    
    
    
    14.7
    
    
    
    7.8
    
    
    
    0.8
    
    
    
    7.1
    
    
    
    5.2
    
    
    
    (0.5
    )
    
    
    
    
    
    
    133.2Noninterest expense
    
    
    159.9
    
    
    
    37.1
    
    
    
    22.8
    
    
    
    3.4
    
    
    
    44.1
    
    
    
    10.9
    
    
    
    1.5
    
    
    
    5.7
    
    
    
    (3.6
    )
    
    
    1.8
    
    
    
    
    
    
    
    283.6Provision for loan and lease losses
    
    
    3.7
    
    
    
    (9.8
    )
    
    
    6.7
    
    
    
    (0.6
    )
    
    
    1.0
    
    
    
    3.1
    
    
    
    0.2
    
    
    
    
    
    
    
    
    
    
    
    (1.1
    )
    
    
    
    
    
    
    3.2Tax provision (benefit)
    
    
    23.3
    
    
    
    31.4
    
    
    
    14.4
    
    
    
    15.8
    
    
    
    15.8
    
    
    
    5.2
    
    
    
    2.5
    
    
    
    0.5
    
    
    
    0.8
    
    
    
    (17.5
    )
    
    
    
    
    
    
    92.2Net income (loss)
    
    $
    60.1
    
    
    $
    51.8
    
    
    $
    19.5
    
    
    $
    2.3
    
    
    $
    25.3
    
    
    $
    8.4
    
    
    $
    4.9
    
    
    $
    0.9
    
    
    $
    1.9
    
    
    $
    (26.0
    )
    
    $
    
    
    
    $
    149.1Assets at June 30
    
    
    13,311
    
    
    
    11,079
    
    
    
    9,460
    
    
    
    8,054
    
    
    
    4,178
    
    
    
    1,673
    
    
    
    1,300
    
    
    
    17
    
    
    
    3,820
    
    
    
    9,272
    
    
    
    (9,648
    )
    
    
    52,516Goodwill at June 30
    
    
    2,299
    
    
    
    709
    
    
    
    308
    
    
    
    
    
    
    
    650
    
    
    
    216
    
    
    
    118
    
    
    
    11
    
    
    
    
    
    
    
    5
    
    
    
    
    
    
    
    4,316Average assets
    
    
    14,193
    
    
    
    10,294
    
    
    
    9,104
    
    
    
    7,766
    
    
    
    4,139
    
    
    
    1,590
    
    
    
    1,264
    
    
    
    17
    
    
    
    3,821
    
    
    
    9,222
    
    
    
    (9,594
    )
    
    
    51,816Average loans and leases
    
    
    10,118
    
    
    
    9,126
    
    
    
    8,740
    
    
    
    
    
    
    
    3,137
    
    
    
    1,406
    
    
    
    1,064
    
    
    
    
    
    
    
    27
    
    
    
    11
    
    
    
    (35
    )
    
    
    33,594Average deposits
    
    
    19,937
    
    
    
    4,785
    
    
    
    14
    
    
    
    2,219
    
    
    
    7,802
    
    
    
    10
    
    
    
    49
    
    
    
    33
    
    
    
    224
    
    
    
    
    
    
    
    (73
    )
    
    
    35,000Three Months Ended June 30, 2004:Net interest income
    
    $
    121.8
    
    
    $
    79.4
    
    
    $
    51.2
    
    
    $
    22.1
    
    
    $
    58.6
    
    
    $
    20.0
    
    
    $
    8.9
    
    
    $
    
    
    
    $
    (6.6
    )
    
    $
    (33.1
    )
    
    $
    
    
    
    $
    322.3Noninterest income
    
    
    44.6
    
    
    
    16.7
    
    
    
    6.5
    
    
    
    2.0
    
    
    
    15.0
    
    
    
    7.0
    
    
    
    7.9
    
    
    
    6.6
    
    
    
    3.7
    
    
    
    
    
    
    
    
    
    
    
    110.0Noninterest expense
    
    
    107.1
    
    
    
    34.0
    
    
    
    21.4
    
    
    
    6.0
    
    
    
    45.0
    
    
    
    10.0
    
    
    
    5.0
    
    
    
    6.0
    
    
    
    (6.2
    )
    
    
    3.9
    
    
    
    
    
    
    
    232.2Provision for loan and lease losses
    
    
    1.7
    
    
    
    
    
    
    
    6.9
    
    
    
    
    
    
    
    1.1
    
    
    
    2.2
    
    
    
    0.2
    
    
    
    
    
    
    
    (0.2
    )
    
    
    
    
    
    
    
    
    
    
    11.9Tax provision (benefit)
    
    
    22.5
    
    
    
    24.6
    
    
    
    11.4
    
    
    
    7.4
    
    
    
    10.2
    
    
    
    5.9
    
    
    
    4.3
    
    
    
    0.2
    
    
    
    2.1
    
    
    
    (15.2
    )
    
    
    
    
    
    
    73.4Net income (loss)
    
    $
    35.1
    
    
    $
    37.5
    
    
    $
    18.0
    
    
    $
    10.7
    
    
    $
    17.3
    
    
    $
    8.9
    
    
    $
    7.3
    
    
    $
    0.4
    
    
    $
    1.4
    
    
    $
    (21.8
    )
    
    $
    
    
    
    $
    114.8Assets at June 30
    
    
    8,013
    
    
    
    9,120
    
    
    
    8,536
    
    
    
    5,144
    
    
    
    3,760
    
    
    
    1,575
    
    
    
    1,244
    
    
    
    25
    
    
    
    3,412
    
    
    
    7,153
    
    
    
    (7,718
    )
    
    
    40,264Goodwill at June 30
    
    
    1,214
    
    
    
    708
    
    
    
    308
    
    
    
    
    
    
    
    650
    
    
    
    216
    
    
    
    118
    
    
    
    11
    
    
    
    
    
    
    
    5
    
    
    
    
    
    
    
    3,230Average assets
    
    
    7,978
    
    
    
    8,959
    
    
    
    8,445
    
    
    
    4,755
    
    
    
    3,682
    
    
    
    1,556
    
    
    
    1,237
    
    
    
    23
    
    
    
    3,287
    
    
    
    7,166
    
    
    
    (7,745
    )
    
    
    39,343Average loans and leases
    
    
    5,943
    
    
    
    7,603
    
    
    
    8,019
    
    
    
    9
    
    
    
    2,693
    
    
    
    1,368
    
    
    
    1,064
    
    
    
    9
    
    
    
    33
    
    
    
    40
    
    
    
    (34
    )
    
    
    26,747Average deposits
    
    
    14,639
    
    
    
    3,480
    
    
    
    11
    
    
    
    1,822
    
    
    
    7,009
    
    
    
    8
    
    
    
    21
    
    
    
    26
    
    
    
    192
    
    
    
    
    
    
    
    (91
    )
    
    
    27,117
 Bank of the West
    
    
    First Hawaiian BankRegional
    
    
    Commercial
    
    
    Consumer
    
    
    
    
    
    
    Retail
    
    
    Consumer
    
    
    Commercial
    
    
    Financial
    
    
    
    
    
    
    Other
    
    
    Reconciling
    
    
    Consolidated(Dollars in millions)
    
    Banking
    
    
    Banking
    
    
    Finance
    
    
    Other(1)
    
    
    Banking
    
    
    Finance
    
    
    Banking
    
    
    Management
    
    
    Other(2)
    
    
    BancWest(3)
    
    
    Items(4)
    
    
    TotalsSix Months Ended June 30, 2005:Net interest income
    
    $
    359.2
    
    
    $
    170.5
    
    
    $
    112.0
    
    
    $
    45.9
    
    
    $
    139.9
    
    
    $
    38.8
    
    
    $
    15.8
    
    
    $
    
    
    
    $
    (11.9
    )
    
    $
    (80.9
    )
    
    $
    
    
    
    $
    789.3Noninterest income
    
    
    122.6
    
    
    
    40.2
    
    
    
    15.0
    
    
    
    7.7
    
    
    
    29.2
    
    
    
    15.7
    
    
    
    2.2
    
    
    
    14.6
    
    
    
    9.9
    
    
    
    (1.0
    )
    
    
    
    
    
    
    256.1Noninterest expense
    
    
    321.8
    
    
    
    72.4
    
    
    
    44.9
    
    
    
    14.8
    
    
    
    87.0
    
    
    
    21.8
    
    
    
    2.9
    
    
    
    12.0
    
    
    
    (5.8
    )
    
    
    3.9
    
    
    
    
    
    
    
    575.7Provision for loan and lease losses
    
    
    5.3
    
    
    
    (10.0
    )
    
    
    13.2
    
    
    
    (0.5
    )
    
    
    0.8
    
    
    
    5.2
    
    
    
    0.4
    
    
    
    
    
    
    
    0.9
    
    
    
    (1.0
    )
    
    
    
    
    
    
    14.3Tax provision (benefit)
    
    
    49.9
    
    
    
    55.5
    
    
    
    27.6
    
    
    
    22.3
    
    
    
    31.6
    
    
    
    10.7
    
    
    
    4.9
    
    
    
    1.0
    
    
    
    0.9
    
    
    
    (34.8
    )
    
    
    
    
    
    
    169.6Net income (loss)
    
    $
    104.8
    
    
    $
    92.8
    
    
    $
    41.3
    
    
    $
    17.0
    
    
    $
    49.7
    
    
    $
    16.8
    
    
    $
    9.8
    
    
    $
    1.6
    
    
    $
    2.0
    
    
    $
    (50.0
    )
    
    $
    
    
    
    $
    285.8Average assets
    
    
    13,515
    
    
    
    10,413
    
    
    
    9,249
    
    
    
    7,634
    
    
    
    4,096
    
    
    
    1,580
    
    
    
    1,244
    
    
    
    18
    
    
    
    3,795
    
    
    
    9,141
    
    
    
    (9,602
    )
    
    
    51,083Average loans and leases
    
    
    9,938
    
    
    
    8,943
    
    
    
    8,739
    
    
    
    
    
    
    
    3,095
    
    
    
    1,398
    
    
    
    1,045
    
    
    
    
    
    
    
    28
    
    
    
    21
    
    
    
    (34
    )
    
    
    33,173Average deposits
    
    
    19,975
    
    
    
    4,325
    
    
    
    14
    
    
    
    2,247
    
    
    
    7,706
    
    
    
    10
    
    
    
    48
    
    
    
    34
    
    
    
    219
    
    
    
    
    
    
    
    (74
    )
    
    
    34,504Six Months Ended June 30, 2004:Net interest income
    
    $
    245.2
    
    
    $
    156.9
    
    
    $
    104.2
    
    
    $
    42.8
    
    
    $
    115.2
    
    
    $
    38.9
    
    
    $
    19.0
    
    
    $
    (0.2
    )
    
    $
    (12.7
    )
    
    $
    (66.0
    )
    
    $
    
    
    
    $
    643.3Noninterest income
    
    
    88.2
    
    
    
    34.6
    
    
    
    9.2
    
    
    
    3.4
    
    
    
    30.0
    
    
    
    15.3
    
    
    
    9.4
    
    
    
    13.8
    
    
    
    7.9
    
    
    
    (0.3
    )
    
    
    
    
    
    
    211.5Noninterest expense
    
    
    214.9
    
    
    
    66.5
    
    
    
    38.4
    
    
    
    9.5
    
    
    
    87.4
    
    
    
    19.8
    
    
    
    6.7
    
    
    
    12.1
    
    
    
    (11.5
    )
    
    
    7.3
    
    
    
    
    
    
    
    451.1Provision for loan and lease losses
    
    
    2.2
    
    
    
    0.4
    
    
    
    21.8
    
    
    
    
    
    
    
    2.4
    
    
    
    4.1
    
    
    
    0.3
    
    
    
    
    
    
    
    (0.5
    )
    
    
    0.1
    
    
    
    
    
    
    
    30.8Tax provision (benefit)
    
    
    45.8
    
    
    
    49.1
    
    
    
    20.9
    
    
    
    14.5
    
    
    
    21.4
    
    
    
    12.1
    
    
    
    7.3
    
    
    
    0.6
    
    
    
    3.6
    
    
    
    (30.2
    )
    
    
    
    
    
    
    145.1Net income (loss)
    
    $
    70.5
    
    
    $
    75.5
    
    
    $
    32.3
    
    
    $
    22.2
    
    
    $
    34.0
    
    
    $
    18.2
    
    
    $
    14.1
    
    
    $
    0.9
    
    
    $
    3.6
    
    
    $
    (43.5
    )
    
    $
    
    
    
    $
    227.8Average assets
    
    
    7,897
    
    
    
    8,802
    
    
    
    8,274
    
    
    
    4,693
    
    
    
    3,627
    
    
    
    1,514
    
    
    
    1,257
    
    
    
    23
    
    
    
    3,276
    
    
    
    7,091
    
    
    
    (7,614
    )
    
    
    38,840Average loans and leases
    
    
    5,869
    
    
    
    7,465
    
    
    
    7,889
    
    
    
    5
    
    
    
    2,638
    
    
    
    1,325
    
    
    
    1,101
    
    
    
    9
    
    
    
    35
    
    
    
    44
    
    
    
    (36
    )
    
    
    26,344Average deposits
    
    
    14,514
    
    
    
    3,430
    
    
    
    9
    
    
    
    1,723
    
    
    
    6,924
    
    
    
    8
    
    
    
    20
    
    
    
    28
    
    
    
    195
    
    
    
    
    
    
    
    (76
    )
    
    
    26,775
 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 June 30, 2005. The noninterest expense items in the Other column are
primarily from Treasury activities and unallocated administrative items for June 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
EXHIBITS
 
 PART II. OTHER INFORMATION
 
 Item 4. Submission of Matters to a Vote of Security Holders
  Frank J. Bonetto
    
    Michel LarrouilhFrançois Dambrine
    
    A. Ewan MacdonaldGérard Denot
    
    Pierre MarianiW. Allen Doane
    
    Don J. McGrathWalter A. Dods, Jr.
    
    Rodney R. PeckRobert A. Fuhrman
    
    Edouard A. SautterPaul Mullin Ganley
    
    Eric K. ShinsekiJohn A. Hoag
    
    John K. TsuiDonald G. Horner
    
    Jacques Henri WahlBert T. Kobayashi, Jr.
 
 Item 6. Exhibits
   2.1
    
    
    Agreement and Plan of Merger dated as of June 13, 2005 among Bank of
the West, Bear Merger Co., Inc., and Commercial Federal Corporation,
incorporated by reference to Exhibit 2.1 to the registrants Report
on Form 8-K dated June 13, 2005.10.1
    
    
    Stock Purchase Agreement dated April 28, 2005 between BancWest
Corporation and BNP Paribas S.A., concerning Bank of the West common
stock, incorporated by reference to Exhibit 10.1 to the registrants
Report on Form 8-K dated April 28, 2005.10.2
    
    
    Amended and Restated Stockholders Agreement dated April 28, 2005
between BancWest Corporation and BNP Paribas S.A., concerning Bank
of the West common stock, incorporated by reference to Exhibit 10.2
to the registrants Report on Form 8-K dated April 28, 2005.
 12
    
    Statement regarding computation of ratios31
    
    Section 302 Certifications32
    
    Section 1350 Certifications
 49




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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
 SIGNATURE
  BANCWEST CORPORATIONDate: August 12, 2005
    By
    /s/ Douglas C. GrigsbyDouglas C. GrigsbyExecutive Vice President, Chief
Financial Officer and Treasurer
(principal financial officer) 50