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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION


WASHINGTON, D. C. 20549





FORM 10-Q

|           |  |                                                        
|---------- |  | -------------------------------------------------------
|(Mark One)
|x          |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|           |  | SECURITIES EXCHANGE ACT OF 1934                        
|           |  | For the quarterly period ended September 30, 2003      

OR

|  |  |                                                         
|- |  | --------------------------------------------------------
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|  |  | SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]       
|  |  | For the transition period from        to                

Commission file number 0-7949




BANCWEST CORPORATION

(Exact name of registrant as specified in its charter)


|                                         |  |  |  |                                     
|---------------------------------------- |  |  |  | ------------------------------------
|Delaware                                 |  |  |  | 99-0156159                          
|(State of incorporation)                 |  |  |  | (I.R.S. Employer Identification No.)
|                                         |  |  |  |                                     
|999 Bishop Street, Honolulu, Hawaii      |  |  |  | 96813                               
|(Address of principal executive offices) |  |  |  | (Zip Code)                          

Registrants telephone number, including area code: (808) 525-7000



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Securities registered pursuant to Section 12(b) of the Act:


None



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Securities registered pursuant to Section 12(g) of the Act:

None



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(Title of class)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or l5(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past
90 days. Yes o  
No o

Indicate by check mark whether the registrant is an accelerated filer (as defined in
Rule 12b-2 of the Exchange Act).
Yes o   
No x

As of November 1, 2003 the number of outstanding shares of each of the issuers classes of
common stock (all of which were beneficially owned by BNP Paribas) was:

|                                      |  |                  
|------------------------------------- |  | -----------------
|Class                                 |  | Outstanding      
|                                      |  |                  
|Class A Common Stock, $0.01 Par Value |  | 85,759,123 Shares



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TABLE OF CONTENTS



|                              |                                                                                               |                                                                                     |  |  |  |  |  | 
|----------------------------- | --------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION
|                              | Item 1. Financial Statements                                                                 
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF INCOME                                                  
|                              |                                                                                               | CONSOLIDATED BALANCE SHEETS                                                        
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF CASH FLOWS                                              
|                              |                                                                                               | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                                         
|                              | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|                              |                                                                                               | OVERVIEW                                                                           
|                              |                                                                                               | NEW PRONOUNCEMENTS                                                                 
|                              |                                                                                               | FORWARD-LOOKING STATEMENTS                                                         
|                              |                                                                                               | MONETARY POLICY AND ECONOMIC CONDITIONS                                            
|                              |                                                                                               | CRITICAL ACCOUNTING POLICIES                                                       
|                              |                                                                                               | CONSOLIDATED FINANCIAL HIGHLIGHTS                                                  
|                              |                                                                                               | NET INTEREST INCOME                                                                
|                              |                                                                                               | NONINTEREST INCOME                                                                 
|                              |                                                                                               | NONINTEREST EXPENSE                                                                
|                              |                                                                                               | OPERATING SEGMENT RESULTS                                                          
|                              |                                                                                               | INVESTMENT SECURITIES                                                              
|                              |                                                                                               | LOANS AND LEASES                                                                   
|                              |                                                                                               | NONPERFORMING ASSETS AND RESTRUCTURED LOANS                                        
|                              |                                                                                               | PROVISION AND ALLOWANCE FOR CREDIT LOSSES                                          
|                              |                                                                                               | DEPOSITS                                                                           
|                              |                                                                                               | LIQUIDITY MANAGEMENT                                                               
|                              |                                                                                               | CAPITAL                                                                            
|                              | Item 3. Quantitative and Qualitative Disclosures About Market Risk                           
|                              | Item 4. Controls and Procedures                                                              
|PART II. OTHER INFORMATION   
|                              | Item 6. Exhibits and Reports on Form 8-K                                                     
|SIGNATURE                    
|EXHIBIT INDEX                
|EXHIBIT 12                   
|EXHIBIT 31                   
|EXHIBIT 32                   



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BANCWEST CORPORATION

FORM 10-Q
September 30, 2003

INDEX

|              |  |                                                                                       |    |                                                                                                                                           |    |      |    | 
|------------- |  | ------------------------------------------------------------------------------------- | -- | ----------------------------------------------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|              |  |                                                                                       |    |                                                                                                                                           |    | Page
|              |  |                                                                                       |    |                                                                                                                                           |    |     
|              |  |                                                                                       |    | PART I. FINANCIAL INFORMATION                                                                                                             |    |      |    | 
|Item 1.       |  | Financial Statements(Unaudited)                                                       |    |                                                                                                                                           | 2  |     
|              |  |                                                                                       |    | Consolidated Statements of Income for the three and nine months ended September 30, 2003
and 2002                                         |    |      | 2  | 
|              |  |                                                                                       |    | Consolidated Balance Sheets at September 30, 2003, December 31, 2002 and September 30, 2002                                               |    |      | 3  | 
|              |  |                                                                                       |    | Consolidated Statements of Changes in Stockholders Equity and Comprehensive Income
for the nine months ended September 30, 2003 and 2002 |    |      | 5  | 
|              |  |                                                                                       |    | Consolidated Statements of Cash Flows for the nine months ended September 30, 2003
and 2002                                               |    |      | 6  | 
|              |  |                                                                                       |    | Notes to Consolidated Financial Statements                                                                                                |    |      | 7  | 
|Item 2.       |  | Managements Discussion and Analysis of Financial Condition and Results of Operations |    |                                                                                                                                           | 18 |     
|              |  |                                                                                       |    | Overview                                                                                                                                  |    |      | 18 | 
|              |  |                                                                                       |    | New Pronouncements                                                                                                                        |    |      | 18 | 
|              |  |                                                                                       |    | Forward Looking Statements                                                                                                                |    |      | 19 | 
|              |  |                                                                                       |    | Monetary Policy and Economic Conditions                                                                                                   |    |      | 19 | 
|              |  |                                                                                       |    | Critical Accounting Policies                                                                                                              |    |      | 19 | 
|              |  |                                                                                       |    | Consolidated Financial Highlights                                                                                                         |    |      | 21 | 
|              |  |                                                                                       |    | Net Interest Income                                                                                                                       |    |      | 22 | 
|              |  |                                                                                       |    | Noninterest Income                                                                                                                        |    |      | 25 | 
|              |  |                                                                                       |    | Noninterest Expense                                                                                                                       |    |      | 25 | 
|              |  |                                                                                       |    | Operating Segment Results                                                                                                                 |    |      | 26 | 
|              |  |                                                                                       |    | Investment Securities                                                                                                                     |    |      | 30 | 
|              |  |                                                                                       |    | Loans and Leases                                                                                                                          |    |      | 31 | 
|              |  |                                                                                       |    | Nonperforming Assets and Restructured Loans                                                                                               |    |      | 32 | 
|              |  |                                                                                       |    | Provision and Allowance for Credit Losses                                                                                                 |    |      | 34 | 
|              |  |                                                                                       |    | Deposits                                                                                                                                  |    |      | 36 | 
|              |  |                                                                                       |    | Liquidity Management                                                                                                                      |    |      | 36 | 
|              |  |                                                                                       |    | Capital                                                                                                                                   |    |      | 36 | 
|Item 3.       |  | Quantitative and Qualitative Disclosures About Market Risk                            |    |                                                                                                                                           | 38 |     
|Item 4.       |  | Controls and Procedures                                                               |    |                                                                                                                                           | 40 |     
|              |  |                                                                                       |    | PART II. OTHER INFORMATION                                                                                                                |    |      |    | 
|Item 6.       |  | Exhibits and Reports on Form 8-K                                                      |    |                                                                                                                                           | 40 |     
|SIGNATURE     |  |                                                                                       | 41 |                                                                                                                                          
|EXHIBIT INDEX |  |                                                                                       |    |                                                                                                                                          
|              |  |                                                                                      
|Exhibit 12    |  | Statement Regarding Computation of Ratios                                             |    |                                                                                                                                           |    |     
|              |  |                                                                                      
|Exhibit 31    |  | Section 302 Certifications                                                            |    |                                                                                                                                           |    |     
|              |  |                                                                                      
|Exhibit 32    |  | Section 1350 Certifications                                                           |    |                                                                                                                                           |    |     

The information furnished in these interim statements reflects all
adjustments that are, in the opinion of management, necessary for a fair
statement of the results for such periods. Such adjustments are of a normal
recurring nature, unless otherwise disclosed in this Form 10-Q. The results
of operations in the interim statements are not necessarily indicative of
the results that may be expected for the full year. The interim financial
information should be read in conjunction with BancWest Corporations 2002
Annual Report on Form 10-K.

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PART I. FINANCIAL INFORMATION




Item 1. Financial Statements




BancWest Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME(Unaudited)

|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |           | 
|--------------------------------------------------------------------- | ----------------------------------------------------- | - | -------------------------------- | ------- | ------------------------------- | - | ------- | ------- | ---- | - | --------- | --------- |  | - | ------- | --------- | 
|                                                                      |                                                       |   | Three Months Ended September 30, |         | Nine Months Ended September 30,
|                                                                      |                                                       |   |                                  |         |                                
|                                                                      |                                                       |   | 2003                             |         | 2002                            |   | 2003    |         | 2002
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |     
|                                                                      |                                                       |   | (in thousands)                  
|Interest income                                                       |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|Interest and fees on loans                                            |                                                       | $ | 343,610                          |         |                                 | $ | 365,886 |         |      | $ | 1,021,733 |           |  | $ | 992,123 |          
|Lease financing income                                                |                                                       |   | 32,809                           |         |                                 |   | 34,894  |         |      |   | 102,151   |           |  |   | 107,860 |          
|Interest on investment securities:                                    |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|                                                                      | Taxable interest income                               |   |                                  | 46,118  |                                 |   |         | 40,704  |      |   |           | 131,986   |  |   |         | 114,881   | 
|                                                                      | Exempt from Federal income taxes                      |   |                                  | 153     |                                 |   |         | 126     |      |   |           | 490       |  |   |         | 360       | 
|Other interest income                                                 |                                                       |   | 1,580                            |         |                                 |   | 2,938   |         |      |   | 4,750     |           |  |   | 6,298   |          
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|                                                                      | Total interest income                                 |   |                                  | 424,270 |                                 |   |         | 444,548 |      |   |           | 1,261,110 |  |   |         | 1,221,522 | 
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|Interest expense                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|Deposits                                                              |                                                       |   | 39,835                           |         |                                 |   | 76,477  |         |      |   | 140,706   |           |  |   | 218,884 |          
|Short-term borrowings                                                 |                                                       |   | 9,230                            |         |                                 |   | 10,430  |         |      |   | 16,464    |           |  |   | 26,486  |          
|Long-term debt                                                        |                                                       |   | 43,843                           |         |                                 |   | 36,907  |         |      |   | 136,014   |           |  |   | 109,044 |          
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|                                                                      | Total interest expense                                |   |                                  | 92,908  |                                 |   |         | 123,814 |      |   |           | 293,184   |  |   |         | 354,414   | 
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|                                                                      | Net interest income                                   |   |                                  | 331,362 |                                 |   |         | 320,734 |      |   |           | 967,926   |  |   |         | 867,108   | 
|Provision for credit losses                                           |                                                       |   | 24,145                           |         |                                 |   | 26,300  |         |      |   | 65,695    |           |  |   | 69,209  |          
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|                                                                      | Net interest income after provision for
credit losses |   |                                  | 307,217 |                                 |   |         | 294,434 |      |   |           | 902,231   |  |   |         | 797,899   | 
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|Noninterest income                                                    |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|Service charges on deposit accounts                                   |                                                       |   | 39,512                           |         |                                 |   | 39,183  |         |      |   | 115,102   |           |  |   | 101,718 |          
|Trust and investment services income                                  |                                                       |   | 9,461                            |         |                                 |   | 9,883   |         |      |   | 28,826    |           |  |   | 28,275  |          
|Other service charges and fees                                        |                                                       |   | 38,535                           |         |                                 |   | 34,032  |         |      |   | 113,380   |           |  |   | 89,442  |          
|Securities gains, net                                                 |                                                       |   | 555                              |         |                                 |   | 282     |         |      |   | 3,913     |           |  |   | 966     |          
|Other                                                                 |                                                       |   | 11,563                           |         |                                 |   | 8,259   |         |      |   | 33,813    |           |  |   | 22,291  |          
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|                                                                      | Total noninterest income                              |   |                                  | 99,626  |                                 |   |         | 91,639  |      |   |           | 295,034   |  |   |         | 242,692   | 
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|Noninterest expense                                                   |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|Salaries and wages                                                    |                                                       |   | 86,269                           |         |                                 |   | 89,486  |         |      |   | 252,908   |           |  |   | 236,043 |          
|Employee benefits                                                     |                                                       |   | 34,091                           |         |                                 |   | 28,340  |         |      |   | 111,127   |           |  |   | 87,497  |          
|Occupancy expense                                                     |                                                       |   | 22,239                           |         |                                 |   | 24,008  |         |      |   | 67,153    |           |  |   | 63,117  |          
|Outside services                                                      |                                                       |   | 18,002                           |         |                                 |   | 17,472  |         |      |   | 53,843    |           |  |   | 48,532  |          
|Intangible amortization                                               |                                                       |   | 5,763                            |         |                                 |   | 5,763   |         |      |   | 17,290    |           |  |   | 14,283  |          
|Equipment expense                                                     |                                                       |   | 11,563                           |         |                                 |   | 14,043  |         |      |   | 35,156    |           |  |   | 36,252  |          
|Restructuring and integration costs                                   |                                                       |   |                                 |         |                                 |   | 6,213   |         |      |   |          |           |  |   | 14,966  |          
|Other                                                                 |                                                       |   | 45,036                           |         |                                 |   | 39,039  |         |      |   | 135,935   |           |  |   | 111,592 |          
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|                                                                      | Total noninterest expense                             |   |                                  | 222,963 |                                 |   |         | 224,364 |      |   |           | 673,412   |  |   |         | 612,282   | 
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|Income before income taxes and cumulative effect
of accounting change |                                                       |   | 183,880                          |         |                                 |   | 161,709 |         |      |   | 523,853   |           |  |   | 428,309 |          
|Provision for income taxes                                            |                                                       |   | 69,268                           |         |                                 |   | 64,651  |         |      |   | 199,498   |           |  |   | 169,256 |          
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|Income before cumulative effect of accounting
change                  |                                                       |   | 114,612                          |         |                                 |   | 97,058  |         |      |   | 324,355   |           |  |   | 259,053 |          
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|Cumulative effect of accounting change, net of tax                    |                                                       |   | 2,370                            |         |                                 |   |        |         |      |   | 2,370     |           |  |   |        |          
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          
|Net income                                                            |                                                       | $ | 112,242                          |         |                                 | $ | 97,058  |         |      | $ | 321,985   |           |  | $ | 259,053 |          
|                                                                      |                                                       |   |                                  |         |                                 |   |         |         |      |   |           |           |  |   |         |          

The accompanying notes are an integral part of these consolidated financial
statements.

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BancWest Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS(Unaudited)

|                                                                           |                                  |                     |            |                |            |              |            |               |            |   |            |            |            | 
|-------------------------------------------------------------------------- | -------------------------------- | ------------------- | ---------- | -------------- | ---------- | ------------ | ---------- | ------------- | ---------- | - | ---------- | ---------- | ---------- | 
|                                                                           |                                  |                     |            | September 30,  |            | December 31, |            | September 30,
|                                                                           |                                  |                     |            | 2003           |            | 2002         |            | 2002         
|                                                                           |                                  |                     |            |                |            |              |            |              
|                                                                           |                                  |                     |            | (in thousands)
|Assets                                                                     |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Cash and due from banks                                                    |                                  | $                   | 1,385,335  |                |            | $            | 1,761,261  |               |            | $ | 1,308,653  |           
|Interest-bearing deposits in other banks                                   |                                  |                     | 369,217    |                |            |              | 2,098      |               |            |   | 272,082    |           
|Federal funds sold and securities purchased under
agreements to resell     |                                  |                     | 340,920    |                |            |              | 430,056    |               |            |   | 351,925    |           
|Trading assets                                                             |                                  |                     | 58,612     |                |            |              | 43,430     |               |            |   | 54,020     |           
|Available-for-sale investment securities                                   |                                  |                     | 5,412,369  |                |            |              | 3,940,769  |               |            |   | 3,708,473  |           
|Loans held for sale                                                        |                                  |                     | 79,300     |                |            |              | 85,274     |               |            |   | 69,824     |           
|Loans and leases:                                                          |                                  |                     |            |                |            |              |            |               |            |   |            |           
|                                                                           | Loans and leases                 |                     |            | 25,264,537     |            |              |            | 24,146,087    |            |   |            | 24,071,689 |           
|                                                                           | Less allowance for credit losses |                     |            | 390,194        |            |              |            | 384,081       |            |   |            | 385,190    |           
|                                                                           |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Net loans and leases                                                       |                                  |                     | 24,874,343 |                |            |              | 23,762,006 |               |            |   | 23,686,499 |           
|                                                                           |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Premises and equipment, net                                                |                                  |                     | 537,171    |                |            |              | 380,272    |               |            |   | 394,800    |           
|Customers acceptance liability                                            |                                  |                     | 38,790     |                |            |              | 25,945     |               |            |   | 28,200     |           
|Core deposit intangible, net                                               |                                  |                     | 193,120    |                |            |              | 210,411    |               |            |   | 216,174    |           
|Goodwill                                                                   |                                  |                     | 3,226,851  |                |            |              | 3,229,200  |               |            |   | 3,383,877  |           
|Other real estate owned and repossessed personal property                  |                                  |                     | 19,237     |                |            |              | 19,613     |               |            |   | 15,523     |           
|Other assets                                                               |                                  |                     | 890,237    |                |            |              | 858,932    |               |            |   | 766,450    |           
|                                                                           |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Total assets                                                               |                                  | $                   | 37,425,502 |                |            | $            | 34,749,267 |               |            | $ | 34,256,500 |           
|                                                                           |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Liabilities and Stockholders Equity                                       |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Deposits:                                                                  |                                  |                     |            |                |            |              |            |               |            |   |            |           
|                                                                           | Domestic:                        |                     |            |                |            |              |            |               |            |   |            |            |           
|                                                                           |                                  | Interest-bearing    |            | $              | 17,545,258 |              |            | $             | 16,720,767 |   |            | $          | 16,930,452 | 
|                                                                           |                                  | Noninterest-bearing |            |                | 7,709,616  |              |            |               | 7,144,929  |   |            |            | 6,779,247  | 
|                                                                           | Foreign                          |                     |            | 665,728        |            |              |            | 691,783       |            |   |            | 647,163    |           
|                                                                           |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Total deposits                                                             |                                  |                     | 25,920,602 |                |            |              | 24,557,479 |               |            |   | 24,356,862 |           
|                                                                           |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Federal funds purchased and securities sold under
agreements to repurchase |                                  |                     | 1,072,759  |                |            |              | 791,476    |               |            |   | 617,470    |           
|Short-term borrowings                                                      |                                  |                     | 930,000    |                |            |              | 733,274    |               |            |   | 1,549,713  |           
|Acceptances outstanding                                                    |                                  |                     | 38,790     |                |            |              | 25,945     |               |            |   | 28,200     |           
|Long-term debt                                                             |                                  |                     | 3,962,279  |                |            |              | 3,376,947  |               |            |   | 2,325,513  |           
|Guaranteed preferred beneficial interests in Companys                     |                                  |                     |            |                |            |              |            |               |            |   |            |           
|                                                                           | junior subordinated debentures   |                     |            | 257,479        |            |              |            | 259,191       |            |   |            | 259,893    |           
|Other liabilities                                                          |                                  |                     | 1,086,071  |                |            |              | 1,137,473  |               |            |   | 1,187,070  |           
|                                                                           |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Total liabilities                                                          |                                  | $                   | 33,267,980 |                |            | $            | 30,881,785 |               |            | $ | 30,324,721 |           
|                                                                           |                                  |                     |            |                |            |              |            |               |            |   |            |           

The accompanying notes are an integral part of these consolidated financial
statements.

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BancWest Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS, Continued(Unaudited)

|                                           |                                                                                                                |                                                                                                 |            |                                       |           |              |            |               |           |   |            |   |           | 
|------------------------------------------ | -------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------- | ---------- | ------------------------------------- | --------- | ------------ | ---------- | ------------- | --------- | - | ---------- | - | --------- | 
|                                           |                                                                                                                |                                                                                                 |            | September 30,                         |           | December 31, |            | September 30, |          
|                                           |                                                                                                                |                                                                                                 |            | 2003                                  |           | 2002         |            | 2002          |          
|                                           |                                                                                                                |                                                                                                 |            |                                       |           |              |            |               |          
|                                           |                                                                                                                |                                                                                                 |            | (in thousands, except per share data)
|Commitments and contingent liabilities     |                                                                                                                |                                                                                                 |            |                                       |           |              |            |               |           |   |            |  
|Stockholders equity:                      |                                                                                                                |                                                                                                 |            |                                       |           |              |            |               |           |   |            |  
|                                           | Class A common stock, par value $.01 per share at September 30, 2003,
December 31, 2002 and September 30, 2002 |                                                                                                 |            |                                       |           |              |            |               |           |   |            |   |          
|                                           |                                                                                                                | Authorized  150,000,000 shares at September 30, 2003, December 31,
2002 and September 30, 2002 |            |                                       |           |              |            |               |           |   |            |   |           | 
|                                           |                                                                                                                | Issued  85,759,123 shares at September 30, 2003, December 31, 2002 and
September 30, 2002      |            | $                                     | 858       |              |            | $             | 858       |   |            | $ | 858       | 
|                                           |                                                                                                                | Surplus                                                                                         |            |                                       | 3,419,927 |              |            |               | 3,419,927 |   |            |   | 3,587,403 | 
|                                           |                                                                                                                | Retained earnings                                                                               |            |                                       | 691,619   |              |            |               | 369,634   |   |            |   | 267,355   | 
|                                           |                                                                                                                | Accumulated other comprehensive income, net                                                     |            |                                       | 45,118    |              |            |               | 77,063    |   |            |   | 76,163    | 
|                                           |                                                                                                                |                                                                                                 |            |                                       |           |              |            |               |           |   |            |  
|Total stockholders equity                 |                                                                                                                |                                                                                                 | 4,157,522  |                                       |           |              | 3,867,482  |               |           |   | 3,931,779  |  
|                                           |                                                                                                                |                                                                                                 |            |                                       |           |              |            |               |           |   |            |  
|Total liabilities and stockholders equity |                                                                                                                | $                                                                                               | 37,425,502 |                                       |           | $            | 34,749,267 |               |           | $ | 34,256,500 |  
|                                           |                                                                                                                |                                                                                                 |            |                                       |           |              |            |               |           |   |            |   |           | 

The accompanying notes are an integral part of these consolidated financial
statements.

4



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##### Table of Contents






BancWest Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF
CHANGES IN STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME(Unaudited)

|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |         |   |           |         |         | 
|-------------------------------- | ----------------------------------------------------------------------------------------------------------- | -------------------- | ---------- | --------------------------------- | - | ------ | --- | ------- | - | -------- | --------- | ------------- | - | ----- | ------- | ------- | ------- | - | ------ | ----------- | ------- | - | --------- | ------- | ------- | 
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        | Accumulated |         |   |           |        
|                                 |                                                                                                             |                      |            | Class A                           |   |        |     |         |   |          |           |               |   | Other |         |         |         |  
|                                 |                                                                                                             |                      |            | Common Stock                      |   |        |     |         |   | Retained |           | Comprehensive |   |       |         |        
|                                 |                                                                                                             |                      |            | Shares                            |   | Amount |     | Surplus |   | Earnings |           | Income, net   |   | Total
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |      
|                                 |                                                                                                             |                      |            | (in thousands, except share data)
|Balance, December 31, 2002       |                                                                                                             |                      | 85,759,123 |                                   |   | $      | 858 |         |   | $        | 3,419,927 |               |   | $     | 369,634 |         |         | $ | 77,063 |             |         | $ | 3,867,482 |        
|Comprehensive income:            |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |         |   |           |        
|                                 | Net income                                                                                                  |                      |            |                                  |   |        |     |        |   |          |           |              |   |       |         | 321,985 |         |   |        |            |         |   |           | 321,985 |        
|                                 | Net unrealized loss on investment
securities available for sale, net of tax
and reclassification adjustment |                      |            |                                  |   |        |     |        |   |          |           |              |   |       |         |        |         |   |        | (32,997     | )       |   |           | (32,997 | )      
|                                 | Net unrealized loss on cash-flow
derivative hedges, net of tax and
reclassification adjustment              |                      |            |                                  |   |        |     |        |   |          |           |              |   |       |         |        |         |   |        | 1,052       |         |   |           | 1,052   |        
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |         |   |           |        
|                                 |                                                                                                             | Comprehensive income |            |                                   |  |        |     |         |  |          |           |               |  |       |         |         | 321,985 |   |        |             | (31,945 | ) |           |         | 290,040 | 
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |         |   |           |        
|Balance, September 30, 2003      |                                                                                                             |                      | 85,759,123 |                                   |   | $      | 858 |         |   | $        | 3,419,927 |               |   | $     | 691,619 |         |         | $ | 45,118 |             |         | $ | 4,157,522 |        
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |         |   |           |        
|Balance, December 31, 2001       |                                                                                                             |                      | 56,074,874 |                                   |   | $      | 561 |         |   | $        | 1,985,275 |               |   | $     | 8,302   |         |         | $ | 7,782  |             |         | $ | 2,001,920 |        
|Comprehensive income:            |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |         |   |           |        
|                                 | Net income                                                                                                  |                      |            |                                  |   |        |     |        |   |          |           |              |   |       |         | 259,053 |         |   |        |            |         |   |           | 259,053 |        
|                                 | Net unrealized gain on investment
securities available for sale, net of tax
and reclassification adjustment |                      |            |                                  |   |        |     |        |   |          |           |              |   |       |         |        |         |   |        | 38,384      |         |   |           | 38,384  |        
|                                 | Net unrealized gain on cash-flow
derivative hedges, net of tax and
reclassification adjustment              |                      |            |                                  |   |        |     |        |   |          |           |              |   |       |         |        |         |   |        | 29,997      |         |   |           | 29,997  |        
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |         |   |           |        
|                                 |                                                                                                             | Comprehensive income |            |                                   |  |        |     |         |  |          |           |               |  |       |         |         | 259,053 |   |        |             | 68,381  |   |           |         | 327,434 | 
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |         |   |           |        
|Issuance of Class A common stock |                                                                                                             |                      | 29,684,249 |                                   |   |        | 297 |         |   |          | 1,599,703 |               |   |       |        |         |         |   |       |             |         |   | 1,600,000 |        
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |         |   |           |        
|Discounted Share Purchase Plan   |                                                                                                             |                      |           |                                   |   |        |    |         |   |          | 2,425     |               |   |       |        |         |         |   |       |             |         |   | 2,425     |        
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |         |   |           |        
|Balance, September 30, 2002      |                                                                                                             |                      | 85,759,123 |                                   |   | $      | 858 |         |   | $        | 3,587,403 |               |   | $     | 267,355 |         |         | $ | 76,163 |             |         | $ | 3,931,779 |        
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |         |   |           |        

The accompanying notes are an integral part of these consolidated financial
statements.

5



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##### Table of Contents






BancWest Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)

|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |            |         |  
|------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------- | ------------------------------------------------------- | ---------- | ------------------------------- | ------- | ---- | ---------- | ---------- | ------- | -
|                                                                         |                                                                                                       |                                                         |            | Nine Months Ended September 30,
|                                                                         |                                                                                                       |                                                         |            |                                
|                                                                         |                                                                                                       |                                                         |            | 2003                            |         | 2002
|                                                                         |                                                                                                       |                                                         |            |                                 |         |     
|                                                                         |                                                                                                       |                                                         |            | (in thousands)                 
|Cash flows from operating activities:                                    |                                                                                                       |                                                         |            |                                 |         |      |            |           
|                                                                         | Net income                                                                                            |                                                         | $          | 321,985                         |         |      | $          | 259,053    |        
|                                                                         | Adjustments to reconcile net income to net cash provided by operating activities:                     |                                                         |            |                                 |         |      |            |            |        
|                                                                         |                                                                                                       | Cumulative
effect of accounting change, net of tax      |            |                                 | 2,370   |      |            |            |        |  
|                                                                         |                                                                                                       | Provision for credit losses                             |            |                                 | 65,695  |      |            |            | 69,209  |  
|                                                                         |                                                                                                       | Depreciation and amortization                           |            |                                 | 47,797  |      |            |            | 46,837  |  
|                                                                         |                                                                                                       | (Decrease) increase in deferred income taxes            |            |                                 | (35,475 | )    |            |            | 156,843 |  
|                                                                         |                                                                                                       | Decrease
(increase) in interest receivable              |            |                                 | 23,896  |      |            |            | (45,483 | )
|                                                                         |                                                                                                       | Increase in interest payable                            |            |                                 | 35,804  |      |            |            | 28,658  |  
|                                                                         |                                                                                                       | Increase
in prepaid expenses                            |            |                                 | (4,979  | )    |            |            | (30,712 | )
|                                                                         |                                                                                                       | Increase in accrued restructuring and integration costs |            |                                 |        |      |            |            | 14,966  |  
|                                                                         |                                                                                                       | Increase in trading assets                              |            |                                 | (15,182 | )    |            |            | (54,020 | )
|                                                                         |                                                                                                       | Decrease (increase) in loans held for sale              |            |                                 | 5,974   |      |            |            | (23,765 | )
|                                                                         |                                                                                                       | Securities gains, net                                   |            |                                 | (3,913  | )    |            |            | (966    | )
|                                                                         |                                                                                                       | Other                                                   |            |                                 | (55,978 | )    |            |            | 31,353  |  
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |            |        
|Net cash provided by operating activities                                |                                                                                                       |                                                         | 387,994    |                                 |         |      | 451,973    |           
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |            |        
|Cash flows from investing activities:                                    |                                                                                                       |                                                         |            |                                 |         |      |            |           
|                                                                         | Net increase in interest-bearing deposits in other banks                                              |                                                         |            | (367,119                        | )       |      |            | (162,147   | )      
|                                                                         | Net decrease (increase) in Federal funds sold and securities purchased
under agreements to resell     |                                                         |            | 89,136                          |         |      |            | (82,925    | )      
|                                                                         | Proceeds from sale of available-for-sale investment securities                                        |                                                         |            | 416,667                         |         |      |            | 167,079    |        
|                                                                         | Proceeds from the maturity of available-for-sale securities                                           |                                                         |            | 1,656,995                       |         |      |            | 533,736    |        
|                                                                         | Purchase of available-for-sale investment securities                                                  |                                                         |            | (3,596,807                      | )       |      |            | (1,319,598 | )      
|                                                                         | Net increase in loans and leases from originations and collections                                    |                                                         |            | (773,059                        | )       |      |            | (593,200   | )      
|                                                                         | Purchase of loans and leases                                                                          |                                                         |            | (1,086,957                      | )       |      |            | (24,949    | )      
|                                                                         | Proceeds from the sale of loans                                                                       |                                                         |            | 681,877                         |         |      |            | 370,167    |        
|                                                                         | Net cash paid for acquisitions                                                                        |                                                         |            |                                |         |      |            | (1,793,000 | )      
|                                                                         | Purchase of premises and equipment                                                                    |                                                         |            | (25,895                         | )       |      |            | (23,349    | )      
|                                                                         | Other                                                                                                 |                                                         |            | 10,190                          |         |      |            | (345       | )      
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |            |        
|Net cash used in investing activities                                    |                                                                                                       |                                                         | (2,994,972 | )                               |         |      | (2,928,531 | )         
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |            |        
|Cash flows from financing activities:                                    |                                                                                                       |                                                         |            |                                 |         |      |            |           
|                                                                         | Net increase in deposits                                                                              |                                                         |            | 1,363,123                       |         |      |            | 674,764    |        
|                                                                         | Net increase (decrease) in Federal funds purchased and securities sold
under agreements to repurchase |                                                         |            | 281,283                         |         |      |            | (404,914   | )      
|                                                                         | Net increase in other short-term borrowings                                                           |                                                         |            | 196,726                         |         |      |            | 1,155,777  |        
|                                                                         | Proceeds from long-term debt                                                                          |                                                         |            | 565,000                         |         |      |            | 440,000    |        
|                                                                         | Repayment of long-term and subordinated debt                                                          |                                                         |            | (175,080                        | )       |      |            | (417,678)  |        
|                                                                         | Proceeds from issuance of Class A common stock                                                        |                                                         |            |                                |         |      |            | 1,600,000  |        
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |           
|Net cash provided by financing activities                                |                                                                                                       |                                                         | 2,231,052  |                                 |         |      | 3,047,949  |           
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |           
|Net (decrease) increase in cash and due from banks                       |                                                                                                       |                                                         | (375,926   | )                               |         |      | 571,391    |           
|Cash and due from banks at beginning of period                           |                                                                                                       |                                                         | 1,761,261  |                                 |         |      | 737,262    |           
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |           
|Cash and due from banks at end of period                                 |                                                                                                       | $                                                       | 1,385,335  |                                 |         | $    | 1,308,653  |           
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |            |        
|Supplemental disclosures:                                                |                                                                                                       |                                                         |            |                                 |         |      |            |           
|                                                                         | Interest paid                                                                                         |                                                         | $          | 257,380                         |         |      | $          | 325,756    |        
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |            |        
|                                                                         | Income taxes paid                                                                                     |                                                         | $          | 156,928                         |         |      | $          | 12,413     |        
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |            |        
|Supplemental schedule of noncash investing and financing activities:     |                                                                                                       |                                                         |            |                                 |         |      |            |           
|                                                                         | Loans converted into other real estate owned and repossessed personal property                        |                                                         | $          | 8,263                           |         |      | $          | 13,131     |        
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |            |        
|                                                                         | Loans made to facilitate the sale of other real estate owned                                          |                                                         | $          | 1,795                           |         |      | $          | 7,765      |        
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |            |        
|                                                                         | Total
increase in assets from accounting change                                                       |                                                         | $          | 159,910                         |         |      | $          |           |        
|                                                                         | Total
increase in liabilities from accounting change                                                  |                                                         | $          | 162,280                         |         |      | $          |           |        
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |            |        
|In connection with acquisitions, the following liabilities were assumed: |                                                                                                       |                                                         |            |                                 |         |      |            |           
|                                                                         | Fair value of assets acquired                                                                         |                                                         | $          |                                |         |      | $          | 10,959,000 |        
|                                                                         | Cash paid                                                                                             |                                                         |            |                                |         |      |            | (1,793,000 | )      
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |            |        
|Liabilities assumed                                                      |                                                                                                       | $                                                       |           |                                 |         | $    | 9,166,000  |           
|                                                                         |                                                                                                       |                                                         |            |                                 |         |      |            |            |        

The accompanying notes are an integral part of these consolidated financial
statements.

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##### Table of Contents






BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)



|1. |  | Summary of Significant Accounting Policies
|-- |  | ------------------------------------------

Description
of Operations

BancWest, a bank holding company, through its subsidiaries, operates a
general commercial banking business and other businesses related to banking.
Its principal assets are its investments in Bank of the West, a State of
California-chartered bank; and First Hawaiian, a State of Hawaii-chartered
bank. We provide a wide range of general commercial banking services,
providing retail and corporate banking, trust and insurance services to
individuals, institutions, businesses and governments.

Basis of Presentation

We have prepared the accompanying financial data for the three and nine
months ended September 30, 2003 and 2002 pursuant to the rules and regulations
of the Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with accounting principles generally accepted in the United States have been
condensed or omitted pursuant to such rules and regulations.

In the opinion of management, the accompanying condensed consolidated
financial statements contain all normal and recurring adjustments necessary to
present fairly our condensed consolidated financial position as of September
30, 2003, December 31, 2002 and September 30, 2002, condensed consolidated results of operations
for the three and nine months ended September 30, 2003 and 2002, and cash flows
activities for the nine months ended September 30, 2003 and 2002.

The preparation of financial statements in accordance with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the amounts reported in our condensed
consolidated financial statements and accompanying notes. Management bases its
estimates on historical experience and various other assumptions believed to be
reasonable. Although these estimates are based on managements best knowledge
of current events and actions that may impact the Company in the future, actual
results may be different from the estimates. Our critical accounting policies
are those that affect our financial statements materially and involve
difficult, subjective or complex judgments by management.

Descriptions of the significant accounting policies of BancWest
Corporation and Subsidiaries (BancWest, the Company or we/our) are included in
Note 1 (Summary of Significant Accounting Policies) to the audited consolidated
financial statements included in the Companys 2002 Annual Report on Form 10-K.
There have been no changes to these policies except for the one listed below.

Changes in Accounting Principles

Consolidation

In January 2003, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 46, Consolidation of Variable Interest
Entities (FIN 46).
FIN 46 provides guidance on how to identify a variable
interest entity (VIE) and determine when the assets, liabilities,
noncontrolling interests and results of operations of a variable interest
entity should be consolidated. The recognition and measurement provisions of
FIN 46 apply at inception to any variable interest entity formed after January
31, 2003, and becomes effective for existing variable interest entities on the
first interim or annual reporting period ending after December 15, 2003. The
Company adopted the consolidation provisions of FIN 46 in the third
quarter for one variable interest entity formed prior to
February 1, 2003, REFIRST, Inc. Please refer to Note 6 Financial
Interpretation No. 46: Consolidation of Variable Interest Entities for details.

Reclassifications

Amounts in the condensed consolidated financial statements for the periods
ended September 30, 2002 and December 31, 2002 have been reclassified to
conform to the current periods presentation.



|2. |  | Mergers and Acquisitions
|-- |  | ------------------------

United California Bank Acquisition

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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) (Continued)

On March 15, 2002, BancWest completed its acquisition of all outstanding
common stock of United California Bank (UCB) from UFJ Bank Ltd. of Japan (UFJ).
UCB was subsequently merged with and into Bank of the West in April 2002 and
its branches were integrated into the Companys branch network system in the
third quarter of 2002. On the date of acquisition by BancWest, UCB had 115
branches (located exclusively in California), total assets of $10.1 billion,
net loans of $8.5 billion and total deposits of $8.2 billion. The preceding
amounts do not include purchase price adjustments. UCBs strong presence in
Southern California complements BancWests existing network in Northern
California, Nevada, New Mexico and the Pacific Northwest. Results of operations
of UCB are included in our consolidated financial statements beginning on March
15, 2002. The purchase price of approximately $2.4 billion was paid in cash and
accounted for as a purchase. BNP Paribas funded BancWests acquisition of UCB
by providing $1.6 billion of additional capital and lending the Company $800
million.

The following table provides an allocation of the purchase price:

|                                                                            |                                                  |   |                |          |  
|--------------------------------------------------------------------------- | ------------------------------------------------ | - | -------------- | -------- | -
|                                                                            |                                                  |   | (in thousands)
|Total purchase price of UCB, including transaction costs                    |                                                  | $ | 2,406,268      |         
|Equity of UCB prior to acquisition by BancWest                              |                                                  |   | 1,083,000      |         
|                                                                            |                                                  |   |                |         
|Excess of pushed down equity over the carrying value of net assets acquired |                                                  |   | 1,323,268      |         
|                                                                            |                                                  |   |                |         
|Purchase accounting adjustments related to assets and liabilities acquired: |                                                  |   |                |         
|                                                                            | Sublease loss reserve                            |   |                | 25,645   |  
|                                                                            | Premises and equipment                           |   |                | 7,645    |  
|                                                                            | Severance and employee relocation                |   |                | 44,513   |  
|                                                                            | Contract cancellations                           |   |                | 12,862   |  
|                                                                            | New core deposit intangible                      |   |                | (120,219 | )
|                                                                            | Other assets                                     |   |                | 3,354    |  
|                                                                            | Deposits                                         |   |                | 8,047    |  
|                                                                            | Deferred cost on pension and retirement benefits |   |                | 49,349   |  
|                                                                            | Other liabilities and taxes                      |   |                | (28,062  | )
|                                                                            |                                                  |   |                |         
|Goodwill resulting from acquisition of and merger with UCB                  |                                                  | $ | 1,326,402      |         
|                                                                            |                                                  |   |                |         

BancWest incurred expenses associated with exiting certain branches,
operational centers and technology platforms of the pre-merged Bank of the
West, as well as certain other conversion and restructuring expenses, totaling
approximately $18 million. Exit costs associated with UCB were considered as
part of the purchase accounting for the acquisition. BancWest established a
severance reserve of approximately $40.5 million. Approximately 750 employees
throughout the combined organization have been or will be displaced in
conjunction with the acquisition. This initiative is substantially complete.
In addition to the severance reserve, we recorded the following accruals: $34.5
million for losses on subleases, $8.0 million for contract cancellations, $1.3
million for relocation and other. Since the date of acquisition, we made the
following adjustments to the reserves: $6.9 million increase for severance,
$7.5 million decrease for losses on subleases, $4.9 million increase for
contract cancellations and $0.2 million decrease for relocation. In addition,
since the date of acquisition, the reserves were decreased as follows: $41.6
million for severance payments, $10.1 million for sublease loss amortization,
$9.3 million for contract cancellation payments and $1.1 million for relocation
and other payments.

The following unaudited pro forma financial information for the nine months ended September 30, 2002, assumes that the UCB acquisition occurred
as of January 1, 2002, after giving effect to certain adjustments. The pro
forma results have been prepared for comparative purposes only and are not
necessarily indicative of the results of operations which may occur in the
future or which would have occurred had the UCB acquisition been consummated as
of January 1, 2002:

|                            |  |                                                           |         | 
|--------------------------- |  | --------------------------------------------------------- | ------- | 
|                            |  | Pro Forma
Financial Information for the nine month period
|                            |  | Ended September 30, 2002                                 
|                            |  |                                                          
|                            |  | (in thousands)                                           
|Net Interest Income         |  | $                                                         | 954,325 | 
|Provision for Credit Losses |  |                                                           | 85,628  | 
|Noninterest Income          |  |                                                           | 262,618 | 
|Noninterest Expense         |  |                                                           | 674,220 | 
|Income Tax Expense          |  |                                                           | 178,990 | 
|                            |  |                                                           |         | 
|Net Income                  |  | $                                                         | 278,105 | 
|                            |  |                                                           |         | 

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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) (Continued)

In conjunction with the purchase of UCB from UFJ, there
were certain items that were in dispute. The disputed items were related to
UCBs loan charge-offs and its deferred tax liability. In March 2003, an
arbitrator decided in favor of BancWest on both matters. Interest on the
disputed amounts totaled $0.8 million, which was recognized in other income
during the first quarter of 2003. The resolution of the loan charge-off issue
was a receivable due from UFJ of $8.9 million, an increase to our allowance for
credit losses of $13.6 million, representing recoveries of loans charged off by
BancWest, and a related decrease to our deferred tax liability of $4.7 million.
Upon resolution of the deferred tax issue during the first quarter of 2003, we
reassessed the adequacy of UCBs deferred tax liability and reduced the related
goodwill by $14.9 million. All cash due from UFJ as a result of the
arbitrators decision was received in April 2003.



|3. |  | Derivative Financial Instruments
|-- |  | --------------------------------

Any portion of the changes in the fair value of a derivative designated as
a hedge that is deemed ineffective is recorded in current period earnings; this
amount was not material in the three and nine months ended September 30, 2003.

Fair Value Hedges

The Company has various derivative instruments that hedge the fair values
of recognized assets or liabilities or of unrecognized firm commitments (fair
value hedges). At September 30, 2003, the Company carried an interest rate swap
of $2.7 million with a fair market value loss of $0.7 million that was
categorized as a fair value hedge for a commercial loan. The Company receives
1-month LIBOR and pays a fixed rate of 8.32%.

At September 30, 2003, we carried a $150 million interest rate swap with
BNP Paribas to hedge obligations under the 9.5% BancWest Capital I Quarterly
Income Preferred Securities. We pay 3-month LIBOR plus 3.69% and receive fixed
payments at 9.5%. The fair market value gain of the swap at September 30, 2003
was $0.5 million.

Cash Flow Hedges

At September 30, 2003, the Company carried interest rate swaps of $600
million with a fair market value gain of $55.3 million which were categorized
as cash flow hedges, to hedge our LIBOR-based commercial loans. The interest
rate swaps were entered into during 2001 by UCB and mature in 2006. We pay
3-month LIBOR and receive fixed rates ranging from 5.64% to 5.87%. The net
settlement on the $600 million swaps has increased commercial loan interest
income by $17.9 million from January 1, 2003 through September 30, 2003. The
Company estimates net settlement gains, recorded as commercial loan interest
income, of $24.6 million over the next twelve months resulting from these
hedges.

During 2003, the Company entered into interest rate swaps totaling $75
million with a fair value gain of $2.7 million in order to reduce exposure to interest rate increases associated with
short-term fixed rate liabilities. The swaps hedge forecasted transactions
associated with short-term fixed rate liabilities. The swaps mature as
follows: $45 million in 2013, $20 million in 2018 and $10 million in 2023. We
pay fixed rates ranging from 3.64% to 4.58% and receive 3-month LIBOR. The
effect on net income from these swaps year-to-date 2003 was $0.4
million. The Company estimates a net increase to interest expense of $2.1
million over the next twelve months resulting from these hedges.

Free-standing Derivative Instruments

Free-standing derivative instruments include derivative transactions
entered into for risk management purposes that do not otherwise qualify for
hedge accounting. Interest rate lock commitments issued on residential mortgage
loans intended to be held for resale are considered free-standing derivative
instruments. Trading activities primarily involve providing various
free-standing interest rate and foreign exchange derivative products to
customers. Interest rate derivative instruments utilized by the Company in its
trading operations include interest rate swaps, caps, floors and collars.

The following table summarizes derivatives held by the Company as of
September 30, 2003 and 2002:

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BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) (Continued)

|                                                    |  |          |           |        |  |          |        |          |  |                |        |          |  |   |           |        |  |   |        |  |  |   |        |  
|--------------------------------------------------- |  | -------- | --------- | ------ |  | -------- | ------ | -------- |  | -------------- | ------ | -------- |  | - | --------- | ------ |  | - | ------ |  |  | - | ------ | -
|                                                    |  | 2003     |           | 2002  
|                                                    |  |          |           |       
|Contractual Amounts Which                           |  |          |           |        |  | Credit   |        |          |  |                |        |          |  |   |           | Credit |  |   |        | 
|Represent                                           |  | Notional |           | Risk   |  | Net Fair |        | Notional |  | Risk           |        | Net Fair
|Credit Risk:                                        |  | Amount   |           | Amount |  | Value    |        | Amount   |  | Amount         |        | Value   
|                                                    |  |          |           |        |  |          |        |          |  |                |        |         
|                                                    |  |          |           |        |  |          |        |          |  | (in thousands) |        |          |  |   |           |        |  |  
|Held for hedge purposes:                            |  |          |           |        |  |          |        |          |  |                |        |          |  |   |           |        |  |   |        |  |  |   |        |  
|Interest rate swaps                                 |  | $        | 827,747   |        |  | $        | 58,494 |          |  | $              | 57,754 |          |  | $ | 603,715   |        |  | $ | 61,200 |  |  | $ | 60,311 |  
|Held for trading or free-standing:                  |  |          |           |        |  |          |        |          |  |                |        |          |  |   |           |        |  |   |        |  |  |   |        |  
|Interest rate swaps                                 |  |          | 1,527,965 |        |  |          | 27,900 |          |  |                | (3,324 | )        |  |   | 1,406,334 |        |  |   | 36,560 |  |  |   | (9,023 | )
|Purchased interest rate options                     |  |          | 34,213    |        |  |          | 468    |          |  |                | 468    |          |  |   | 70,266    |        |  |   | 1,135  |  |  |   | 1,135  |  
|Written interest rate options                       |  |          | 50,917    |        |  |          |       |          |  |                | (285   | )        |  |   | 63,401    |        |  |   |       |  |  |   | (588   | )
|Forward interest rate options                       |  |          | 43,000    |        |  |          | 11     |          |  |                | 11     |          |  |   | 21,000    |        |  |   | 73     |  |  |   | 73     |  
|Rate locks                                          |  |          | 66,400    |        |  |          | 1,111  |          |  |                | 1,111  |          |  |   |          |        |  |   |       |  |  |   |       |  
|Commitments to purchase and sell foreign currencies |  |          | 458,570   |        |  |          | 9,400  |          |  |                | 222    |          |  |   | 400,607   |        |  |   | 2,860  |  |  |   | 76     |  
|Purchased foreign exchange options                  |  |          | 43,187    |        |  |          | 533    |          |  |                | 533    |          |  |   | 11,984    |        |  |   | 143    |  |  |   | 143    |  
|Written foreign exchange options                    |  |          | 43,187    |        |  |          |       |          |  |                | (533   | )        |  |   | 11,984    |        |  |   |       |  |  |   | (143   | )



|4. |  | Operating Segments
|-- |  | ------------------

Our reportable segments are the ones we use in our internal reporting at
Bank of the West and First Hawaiian Bank (First Hawaiian). Bank of the Wests
segments operate primarily in California, Oregon, Washington, Idaho, New Mexico
and Nevada. As discussed below, certain Bank of the West segments conduct
business nationwide. Although First Hawaiians segments operate primarily in
Hawaii, First Hawaiian also has significant operations outside the state, such
as leveraged leases, international banking and branches in Guam and Saipan.

The results of each segment are determined by our management accounting
process, which assigns balance sheet and income statement items to each
reporting segment. The net interest income of each segment includes the results
of the Banks transfer pricing process, which assesses an internal funds charge
on all segment assets and a funds credit on all segment liabilities. The
internal charges and credits assigned to each asset and liability are intended
to match the maturity, repayment and interest rate characteristics of that
asset or liability. With the exception of goodwill, assets are allocated to
each business segment on the basis of assumed benefit to their business
operations. Goodwill is assigned on the basis of projected future earnings of
the segments. The process of management accounting is dynamic and subjective.
There is no comprehensive or authoritative guidance which can be followed.

Bank of the West

Bank of the West manages its operations through three business segments:
Regional Banking, Commercial Banking and Consumer Finance.

Regional Banking:

Regional Banking seeks to serve a broad customer base by furnishing a wide
range of retail and commercial banking products. Deposit products offered by
this segment include checking accounts, savings deposits, market rate accounts,
individual retirement accounts and time deposits. Regional Banking utilizes
its branch network as its principal funding source. Bank of the Wests
telephone banking service, a network of automated teller machines and the
online eTimeBanker service provide retail customers with other means of
accessing and managing their accounts.

Through its branch network, this business segment originates a variety of
consumer loans, including direct vehicle loans, lines of credit and second
mortgages. In addition, Regional Banking originates and holds a portfolio of
first mortgage loans on one- to four-family residences. Through its commercial
banking operations conducted from its branch network, Regional Banking offers a
wide range of commercial banking products intended to serve the needs of
smaller community-based businesses. These include in-branch originations of
standardized loan and deposit products for businesses with relatively simple
banking and financing needs. More complex and customized commercial banking
services are offered through Bank of the Wests regional banking centers, which
serve clusters of branches and provide lending, deposit and cash management
services to companies operating in the relevant market areas. Regional Banking
also provides a number of fee-based products and services such as annuities,
insurance and securities brokerage.

The Regional Banking Segment includes a Business Banking Division which
supports commercial lending activities for middle market business customers
through Business Banking centers located throughout California, as well as
Portland, Oregon, Reno and Las Vegas, Nevada and Albuquerque, New Mexico. The
Regional Banking Segment also includes a Pacific Rim Division which offers
multilingual services through a branch network in predominately Asian American
communities in California, with specialized domestic and international products
and services for both individuals and companies.

Commercial Banking:

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BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) (Continued)

The Commercial Banking Segment supports business clients with revenues
between $25 million and $350 million. This segments clients include those
engaged in agribusiness, real estate industries, as well as, churches, Small
Business Administration (SBA) and equipment leasing clients. Equipment leasing
is available through the Banks commercial offices, branches, brokers across
the nation and its subsidiary, Trinity Capital. Trinity specializes in
nationwide vendor leasing and servicing programs for manufacturers in specific
markets.

Services offered include cash management, trade finance, correspondent
banking services and syndication of commercial credits exceeding $30 million.

Consumer Finance:

The Consumer Finance Segment targets the origination of auto loans and
leases in the western United States, and recreational vehicle and marine loans
nationwide, with emphasis on originating credits at the high end of the credit
spectrum. These loans and leases are originated through a network of auto
dealers and recreational vehicle and marine dealers serviced by sales
representatives located throughout the country. This segment also includes
Bank of the Wests wholly-owned subsidiary, Essex Credit Corporation, which
focuses on the origination of marine and recreational vehicle loans directly
with customers. Essex has office locations throughout the United States and
sells substantially all of its loans to investors.

First Hawaiian Bank

First Hawaiian manages its operations through the following business
segments: Retail Banking, Consumer Banking, Commercial Banking and Financial
Management.

Retail Banking:

First Hawaiians Retail Banking Segment operates its main banking office
in Honolulu, Hawaii, and 55 other banking offices located throughout Hawaii.
First Hawaiian also operates three branches in Guam and two branches in Saipan.

The focus of First Hawaiians retail/community banking strategy is
primarily in Hawaii, where it has a 40% market share of the domestic bank
deposits of individuals, corporations and partnerships in the state as of
September 30, 2003. Thanks to its significant market share in Hawaii, First
Hawaiian already has product or service relationships with a majority of the
households in the state. Therefore, a key goal of its retail community banking
strategy is to build those relationships by cross-selling additional products
and services to existing individual and business customers.

In pursuing the community banking markets in Hawaii, Guam and Saipan,
First Hawaiian seeks to serve a broad customer base by furnishing a range of
retail and commercial banking products. Through its branch network, First
Hawaiian generates first-mortgage loans on residences and a variety of consumer
loans, consumer lines of credit and second mortgages. Through commercial
banking operations conducted from its branch network, First Hawaiian offers a
wide range of banking products intended to serve the needs of smaller,
community-based businesses. First Hawaiian also provides a number of fee-based
products and services such as annuities and mutual funds, insurance and
securities brokerage.

To complement its branch network and serve these customers, First Hawaiian
operates a system of automated teller machines, a 24-hour phone center in
Honolulu and a full-service internet banking system.

Consumer Banking:

Consumer Lending: First Hawaiian offers many types of loans and credits to
consumers, including lines of credit (uncollateralized or collateralized) and
various types of personal and automobile loans. First Hawaiian also provides
indirect consumer automobile financing on new and used autos by purchasing
finance contracts from dealers. First Hawaiians Dealer Center is one of the
largest commercial bank automobile lenders in the State of Hawaii. First
Hawaiian is the largest issuer of MasterCard® credit cards and VISA® credit
cards in Hawaii.

Real Estate Lending-Residential: First Hawaiian makes residential real
estate loans, including home-equity loans, to enable borrowers to purchase,
refinance, improve or construct residential real property. The loans are
collateralized by mortgage liens on the related property, substantially all
located in Hawaii. First Hawaiian also originates residential real estate loans
for sale on the secondary market.

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BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) (Continued)

Commercial Banking:

Commercial Lending: First Hawaiian is a major lender to small and
medium-sized businesses in Hawaii and Guam. Lending services include receivable
and inventory financing, equipment term loans, letters of credit, dealer
vehicle flooring financing and trade financing. To support the cash management
needs of both commercial banking customers and large private and public deposit
relationships maintained with the bank, First Hawaiian operates a Cash
Management Department which provides a full range of innovative and
relationship-focused cash management services.

Real Estate Lending-Commercial: First Hawaiian provides permanent
financing for a variety of commercial developments, such as retail facilities,
warehouses and office buildings.

International Banking Services: First Hawaiian provides international
banking products and services through First Hawaiians branch system, its Japan
Business Development Department in Honolulu, a Grand Cayman branch, three Guam
branches, two branches in Saipan and a representative office in Tokyo, Japan.
First Hawaiian maintains a network of correspondent banking relationships
throughout the world. First Hawaiians trade-related international banking
activities are concentrated in the Asia-Pacific area.

Financial Management:

Trust and Investment Services: First Hawaiians Financial Management
Segment offers a full range of trust and investment management services, and
also seeks to reinforce customer relationships developed by or in conjunction
with the Retail Banking Segment. The Financial Management Segment provides
asset management, advisory and administrative services for estates, trusts and
individuals. It also acts as trustee and custodian of retirement and other
employee benefit plans. At September 30, 2003, the Trust and Investments
Division had approximately 4,000 accounts with a market value of $8.2 billion.
Of this total, $5.9 billion represented assets in nonmanaged accounts and $2.3
billion were managed assets.

Securities and Insurance Services: First Hawaiian, through a wholly-owned
subsidiary, First Hawaiian Insurance, Inc., provides insurance brokerage
services for personal, business or estate insurance to its customers. First
Hawaiian Insurance offers insurance needs analysis for individuals, families
and businesses, as well as life, disability and long-term care insurance
products. In association with an independent registered broker-dealer, First
Hawaiian offers mutual funds, annuities and other securities in its branches.

Private Banking Services: The Private Banking Department within First
Hawaiians Financial Management Segment provides a wide range of products to
high-net-worth individuals.

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BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

The tables below present information about the Companys operating segments as
of or for the periods indicated:



|                                                     |  |                  |        |                     |  |          |       |          |  |         |       |         |  |          |       |            |  |           |       |  |  |   |       |  |  |   |       |  |  |   |     |  |  |   |       |  
|---------------------------------------------------- |  | ---------------- | ------ | ------------------- |  | -------- | ----- | -------- |  | ------- | ----- | ------- |  | -------- | ----- | ---------- |  | --------- | ----- |  |  | - | ----- |  |  | - | ----- |  |  | - | --- |  |  | - | ----- | -
|                                                     |  | Bank of the West |        | First Hawaiian Bank
|                                                     |  |                  |        |                    
|                                                     |  | Regional         |        | Commercial          |  | Consumer |       |          |  |         |       | Retail  |  | Consumer |       | Commercial |  | Financial |       |  |  |  
|(in millions)                                        |  | Banking          |        | Banking             |  | Finance  |       | Other(1) |  | Banking |       | Banking |  | Banking  |       | Management |  | Other(2) 
|                                                     |  |                  |        |                     |  |          |       |          |  |         |       |         |  |          |       |            |  |          
|Three Months Ended September 30,
2003:               |  |                  |        |                     |  |          |       |          |  |         |       |         |  |          |       |            |  |           |       |  |  |   |       |  |  |   |       |  |  |   |     |  |  |   |       |  
|Net interest income                                  |  | $                | 127.7  |                     |  | $        | 78.5  |          |  | $       | 53.0  |         |  | $        | 20.1  |            |  | $         | 68.2  |  |  | $ | 22.5  |  |  | $ | 7.9   |  |  | $ |    |  |  | $ | (11.5 | )
|Noninterest income                                   |  |                  | 42.7   |                     |  |          | 13.0  |          |  |         | 2.9   |         |  |          | 5.1   |            |  |           | 17.9  |  |  |   | 5.4   |  |  |   | 3.1   |  |  |   | 7.9 |  |  |   | 1.7   |  
|Noninterest expense                                  |  |                  | 107.9  |                     |  |          | 28.2  |          |  |         | 15.0  |         |  |          | 6.0   |            |  |           | 45.9  |  |  |   | 11.7  |  |  |   | 2.0   |  |  |   | 6.0 |  |  |   | (2.3  | )
|Provision for credit losses                          |  |                  | 4.3    |                     |  |          | 2.2   |          |  |         | 13.6  |         |  |          |      |            |  |           | 1.3   |  |  |   | 2.4   |  |  |   | 0.1   |  |  |   |    |  |  |   | 0.2   |  
|Tax provision (benefit)                              |  |                  | 23.0   |                     |  |          | 24.1  |          |  |         | 10.8  |         |  |          | 6.3   |            |  |           | 14.2  |  |  |   | 5.0   |  |  |   | 2.2   |  |  |   | 0.8 |  |  |   | (1.8  | )
|                                                     |  |                  |        |                     |  |          |       |          |  |         |       |         |  |          |       |            |  |           |       |  |  |   |       |  |  |   |       |  |  |   |     |  |  |   |       |  
|Income before cumulative effect of accounting change |  |                  | 35.2   |                     |  |          | 37.0  |          |  |         | 16.5  |         |  |          | 12.9  |            |  |           | 24.7  |  |  |   | 8.8   |  |  |   | 6.7   |  |  |   | 1.1 |  |  |   | (5.9  | )
|Cumulative effect of accounting
change, net of tax   |  |                  |       |                     |  |          |      |          |  |         |      |         |  |          |      |            |  |           |      |  |  |   |      |  |  |   |      |  |  |   |    |  |  |   | (2.4  | )
|                                                     |  |                  |        |                     |  |          |       |          |  |         |       |         |  |          |       |            |  |           |       |  |  |   |       |  |  |   |       |  |  |   |     |  |  |   |       |  
|Net income (loss)                                    |  | $                | 35.2   |                     |  | $        | 37.0  |          |  | $       | 16.5  |         |  | $        | 12.9  |            |  | $         | 24.7  |  |  | $ | 8.8   |  |  | $ | 6.7   |  |  | $ | 1.1 |  |  | $ | (8.3  | )
|                                                     |  |                  |        |                     |  |          |       |          |  |         |       |         |  |          |       |            |  |           |       |  |  |   |       |  |  |   |       |  |  |   |     |  |  |   |       |  
|Segment assets at September 30                       |  | $                | 7,635  |                     |  | $        | 8,469 |          |  | $       | 7,842 |         |  | $        | 4,446 |            |  | $         | 3,470 |  |  | $ | 1,354 |  |  | $ | 989   |  |  | $ | 19  |  |  | $ | 3,862 |  
|Segment goodwill at September 30                     |  |                  | 1,214  |                     |  |          | 706   |          |  |         | 308   |         |  |          |      |            |  |           | 650   |  |  |   | 216   |  |  |   | 118   |  |  |   | 10  |  |  |   |      |  
|Average assets                                       |  | $                | 7,720  |                     |  | $        | 8,356 |          |  | $       | 7,777 |         |  | $        | 4,070 |            |  | $         | 3,472 |  |  | $ | 1,379 |  |  | $ | 1,036 |  |  | $ | 18  |  |  | $ | 3,650 |  
|Average loans                                        |  |                  | 5,698  |                     |  |          | 7,070 |          |  |         | 7,460 |         |  |          |      |            |  |           | 2,472 |  |  |   | 1,183 |  |  |   | 895   |  |  |   | 3   |  |  |   | 407   |  
|Average deposits                                     |  |                  | 13,834 |                     |  |          | 2,926 |          |  |         | 12    |         |  |          | 1,819 |            |  |           | 6,621 |  |  |   | 11    |  |  |   | 27    |  |  |   | 56  |  |  |   | 173   |  
|Three Months Ended September 30,
2002:               |  |                  |        |                     |  |          |       |          |  |         |       |         |  |          |       |            |  |           |       |  |  |   |       |  |  |   |       |  |  |   |     |  |  |   |       |  
|Net interest income                                  |  | $                | 135.4  |                     |  | $        | 73.5  |          |  | $       | 47.7  |         |  | $        | 14.7  |            |  | $         | 64.1  |  |  | $ | 18.0  |  |  | $ | 7.0   |  |  | $ | 0.1 |  |  | $ | (7.8  | )
|Noninterest income                                   |  |                  | 40.7   |                     |  |          | 8.6   |          |  |         | 2.8   |         |  |          | 7.5   |            |  |           | 15.7  |  |  |   | 7.8   |  |  |   | 1.7   |  |  |   | 7.2 |  |  |   | (0.3  | )
|Noninterest expense                                  |  |                  | 109.4  |                     |  |          | 27.8  |          |  |         | 13.5  |         |  |          | 14.8  |            |  |           | 43.6  |  |  |   | 10.4  |  |  |   | 1.9   |  |  |   | 5.8 |  |  |   | (3.9  | )
|Provision for credit losses                          |  |                  | 6.8    |                     |  |          | 1.9   |          |  |         | 12.9  |         |  |          |      |            |  |           | 2.1   |  |  |   | 2.5   |  |  |   | 0.3   |  |  |   |    |  |  |   | (0.2  | )
|Tax provision (benefit)                              |  |                  | 24.8   |                     |  |          | 21.6  |          |  |         | 10.0  |         |  |          | 2.3   |            |  |           | 13.0  |  |  |   | 4.8   |  |  |   | 2.0   |  |  |   | 0.6 |  |  |   | (1.0  | )
|                                                     |  |                  |        |                     |  |          |       |          |  |         |       |         |  |          |       |            |  |           |       |  |  |   |       |  |  |   |       |  |  |   |     |  |  |   |       |  
|Net income (loss)                                    |  | $                | 35.1   |                     |  | $        | 30.8  |          |  | $       | 14.1  |         |  | $        | 5.1   |            |  | $         | 21.1  |  |  | $ | 8.1   |  |  | $ | 4.5   |  |  | $ | 0.9 |  |  | $ | (3.0  | )
|                                                     |  |                  |        |                     |  |          |       |          |  |         |       |         |  |          |       |            |  |           |       |  |  |   |       |  |  |   |       |  |  |   |     |  |  |   |       |  
|Segment assets at September 30                       |  | $                | 7,597  |                     |  | $        | 7,821 |          |  | $       | 6,869 |         |  | $        | 3,477 |            |  | $         | 3,199 |  |  | $ | 1,315 |  |  | $ | 1,098 |  |  | $ | 13  |  |  | $ | 3,309 |  
|Segment goodwill at September 30                     |  |                  | 1,208  |                     |  |          | 703   |          |  |         | 306   |         |  |          |      |            |  |           | 650   |  |  |   | 216   |  |  |   | 118   |  |  |   | 10  |  |  |   |      |  
|Average assets                                       |  | $                | 7,915  |                     |  | $        | 7,963 |          |  | $       | 6,804 |         |  | $        | 2,867 |            |  | $         | 3,206 |  |  | $ | 1,300 |  |  | $ | 1,083 |  |  | $ | 13  |  |  | $ | 3,201 |  
|Average loans                                        |  |                  | 5,907  |                     |  |          | 6,767 |          |  |         | 6,447 |         |  |          |      |            |  |           | 2,355 |  |  |   | 1,093 |  |  |   | 944   |  |  |   |    |  |  |   | 533   |  
|Average deposits                                     |  |                  | 13,652 |                     |  |          | 2,434 |          |  |         |      |         |  |          | 1,685 |            |  |           | 6,131 |  |  |   | 9     |  |  |   | 19    |  |  |   | 32  |  |  |   | 169   |  

[Additional columns below]

[Continued from above table, first column(s) repeated]

|                                                     |  |             |       |             |  |              |        |   |  |   |        |  
|---------------------------------------------------- |  | ----------- | ----- | ----------- |  | ------------ | ------ | - |  | - | ------ | -
|                                                     |  | Other       |       | Reconciling |  | Consolidated
|(in millions)                                        |  | BancWest(3) |       | Items(4)    |  | Totals      
|                                                     |  |             |       |             |  |             
|Three Months Ended September 30,
2003:               |  |             |       |             |  |              |        |   |  |   |        |  
|Net interest income                                  |  | $           | (35.0 | )           |  | $            |       |   |  | $ | 331.4  |  
|Noninterest income                                   |  |             | (0.2  | )           |  |              | 0.1    |   |  |   | 99.6   |  
|Noninterest expense                                  |  |             | 2.3   |             |  |              | 0.3    |   |  |   | 223.0  |  
|Provision for credit losses                          |  |             |      |             |  |              |       |   |  |   | 24.1   |  
|Tax provision (benefit)                              |  |             | (15.4 | )           |  |              | 0.1    |   |  |   | 69.3   |  
|                                                     |  |             |       |             |  |              |        |   |  |   |        |  
|Income before cumulative effect of accounting change |  |             | (22.1 | )           |  |              | (0.3   | ) |  |   | 114.6  |  
|Cumulative effect of accounting
change, net of tax   |  |             |      |             |  |              |       |   |  |   | (2.4   | )
|                                                     |  |             |       |             |  |              |        |   |  |   |        |  
|Net income (loss)                                    |  | $           | (22.1 | )           |  | $            | (0.3   | ) |  | $ | 112.2  |  
|                                                     |  |             |       |             |  |              |        |   |  |   |        |  
|Segment assets at September 30                       |  | $           | 6,947 |             |  | $            | (7,607 | ) |  | $ | 37,426 |  
|Segment goodwill at September 30                     |  |             | 5     |             |  |              |       |   |  |   | 3,227  |  
|Average assets                                       |  | $           | 6,877 |             |  | $            | (7,557 | ) |  | $ | 36,798 |  
|Average loans                                        |  |             | 55    |             |  |              | (44    | ) |  |   | 25,199 |  
|Average deposits                                     |  |             |      |             |  |              | (57    | ) |  |   | 25,422 |  
|Three Months Ended September 30,
2002:               |  |             |       |             |  |              |        |   |  |   |        |  
|Net interest income                                  |  | $           | (31.8 | )           |  | $            | (0.2   | ) |  | $ | 320.7  |  
|Noninterest income                                   |  |             | (0.1  | )           |  |              |       |   |  |   | 91.6   |  
|Noninterest expense                                  |  |             | 1.2   |             |  |              | (0.2   | ) |  |   | 224.3  |  
|Provision for credit losses                          |  |             |      |             |  |              |       |   |  |   | 26.3   |  
|Tax provision (benefit)                              |  |             | (13.4 | )           |  |              | (0.1   | ) |  |   | 64.6   |  
|                                                     |  |             |       |             |  |              |        |   |  |   |        |  
|Net income (loss)                                    |  | $           | (19.7 | )           |  | $            | 0.1    |   |  | $ | 97.1   |  
|                                                     |  |             |       |             |  |              |        |   |  |   |        |  
|Segment assets at September 30                       |  | $           | 7,572 |             |  | $            | (8,013 | ) |  | $ | 34,257 |  
|Segment goodwill at September 30                     |  |             | 173   |             |  |              |       |   |  |   | 3,384  |  
|Average assets                                       |  | $           | 7,466 |             |  | $            | (7,881 | ) |  | $ | 33,937 |  
|Average loans                                        |  |             | 22    |             |  |              |       |   |  |   | 24,068 |  
|Average deposits                                     |  |             | (36   | )           |  |              |       |   |  |   | 24,095 |  

13



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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) (Continued)

|                                                        |  |         |                  |         |                     |         |          |          |  |         |       |         |        |         |          |            |            |          |           |             |  |          |       |        |       |   |             |  |              |   |      |  |  |   |       |   |  |   |        |   |  |   |        |   |  |   |        |   | 
|------------------------------------------------------- |  | ------- | ---------------- | ------- | ------------------- | ------- | -------- | -------- |  | ------- | ----- | ------- | ------ | ------- | -------- | ---------- | ---------- | -------- | --------- | ----------- |  | -------- | ----- | ------ | ----- | - | ----------- |  | ------------ | - | ---- |  |  | - | ----- | - |  | - | ------ | - |  | - | ------ | - |  | - | ------ | - | 
|                                                        |  |         | Bank of the West |         | First Hawaiian Bank |         |          |          |  |         |       |         |        |         |          |            |           
|                                                        |  |         |                  |         |                     |         |          |          |  |         |       |         |        |         |          |            |           
|                                                        |  |         | Regional         |         | Commercial          |         | Consumer |          |  |         |       |         | Retail |         | Consumer |            | Commercial |          | Financial |             |  |          |       |        | Other |   | Reconciling |  | Consolidated
|(in millions)                                           |  | Banking |                  | Banking |                     | Finance |          | Other(1) |  | Banking |       | Banking |        | Banking |          | Management |            | Other(2) |           | BancWest(3) |  | Items(4) |       | Totals
|                                                        |  |         |                  |         |                     |         |          |          |  |         |       |         |        |         |          |            |            |          |           |             |  |          |       |       
|Nine
MonthsEndedSeptember 30,
2003:                     |  |         |                  |         |                     |         |          |          |  |         |       |         |        |         |          |            |            |          |           |             |  |          |       |        |       |   |             |  |              |   |      |  |  |   |       |   |  |   |        |   |  |   |        |   |  |   |        |  
|Net interest income                                     |  | $       | 370.3            |         |                     | $       | 234.4    |          |  | $       | 153.4 |         |        | $       | 55.5     |            |            | $        | 199.4     |             |  | $        | 63.8  |        |       | $ | 23.3        |  |              | $ | 0.2  |  |  | $ | (28.7 | ) |  | $ | (103.8 | ) |  | $ | 0.1    |   |  | $ | 967.9  |  
|Noninterest income                                      |  |         | 123.0            |         |                     |         | 38.4     |          |  |         | 9.1   |         |        |         | 15.7     |            |            |          | 51.7      |             |  |          | 22.8  |        |       |   | 6.3         |  |              |   | 22.7 |  |  |   | 5.5   |   |  |   | (0.2   | ) |  |   |       |   |  |   | 295.0  |  
|Noninterest expense                                     |  |         | 323.9            |         |                     |         | 88.1     |          |  |         | 46.0  |         |        |         | 18.7     |            |            |          | 134.7     |             |  |          | 34.5  |        |       |   | 6.4         |  |              |   | 19.2 |  |  |   | (8.1  | ) |  |   | 9.8    |   |  |   | 0.2    |   |  |   | 673.4  |  
|Provision for credit losses                             |  |         | 12.2             |         |                     |         | (1.6     | )        |  |         | 43.2  |         |        |         |         |            |            |          | 4.8       |             |  |          | 7.0   |        |       |   | 0.1         |  |              |   |     |  |  |   |      |   |  |   |       |   |  |   |       |   |  |   | 65.7   |  
|Tax provision (benefit)                                 |  |         | 62.2             |         |                     |         | 73.7     |          |  |         | 29.0  |         |        |         | 18.0     |            |            |          | 41.7      |             |  |          | 16.8  |        |       |   | 6.4         |  |              |   | 1.5  |  |  |   | (3.5  | ) |  |   | (46.3  | ) |  |   | (0.1   | ) |  |   | 199.4  |  
|                                                        |  |         |                  |         |                     |         |          |          |  |         |       |         |        |         |          |            |            |          |           |             |  |          |       |        |       |   |             |  |              |   |      |  |  |   |       |   |  |   |        |   |  |   |        |   |  |   |        |  
|Income before cumulative effect of an accounting change |  |         | 95.0             |         |                     |         | 112.6    |          |  |         | 44.3  |         |        |         | 34.5     |            |            |          | 69.9      |             |  |          | 28.3  |        |       |   | 16.7        |  |              |   | 2.2  |  |  |   | (11.6 | ) |  |   | (67.5  | ) |  |   |       |   |  |   | 324.4  |  
|Cumulative effect of
accounting change, net of tax      |  |         |                 |         |                     |         |         |          |  |         |      |         |        |         |         |            |            |          |          |             |  |          |      |        |       |   |            |  |              |   |     |  |  |   | (2.4  | ) |  |   |       |   |  |   |       |   |  |   | (2.4   | )
|                                                        |  |         |                  |         |                     |         |          |          |  |         |       |         |        |         |          |            |            |          |           |             |  |          |       |        |       |   |             |  |              |   |      |  |  |   |       |   |  |   |        |   |  |   |        |   |  |   |        |  
|Net income (loss)                                       |  | $       | 95.0             |         |                     | $       | 112.6    |          |  | $       | 44.3  |         |        | $       | 34.5     |            |            | $        | 69.9      |             |  | $        | 28.3  |        |       | $ | 16.7        |  |              | $ | 2.2  |  |  | $ | (14.0 | ) |  | $ | (67.5  | ) |  | $ |       |   |  | $ | 322.0  |  
|                                                        |  |         |                  |         |                     |         |          |          |  |         |       |         |        |         |          |            |            |          |           |             |  |          |       |        |       |   |             |  |              |   |      |  |  |   |       |   |  |   |        |   |  |   |        |   |  |   |        |  
|Segment assets at September 30                          |  | $       | 7,635            |         |                     | $       | 8,469    |          |  | $       | 7,842 |         |        | $       | 4,446    |            |            | $        | 3,470     |             |  | $        | 1,354 |        |       | $ | 989         |  |              | $ | 19   |  |  | $ | 3,862 |   |  | $ | 6,947  |   |  | $ | (7,607 | ) |  | $ | 37,426 |  
|Segment goodwill at September 30                        |  |         | 1,214            |         |                     |         | 706      |          |  |         | 308   |         |        |         |         |            |            |          | 650       |             |  |          | 216   |        |       |   | 118         |  |              |   | 10   |  |  |   |      |   |  |   | 5      |   |  |   |       |   |  |   | 3,227  |  
|Average assets                                          |  | $       | 7,461            |         |                     | $       | 8,252    |          |  | $       | 7,432 |         |        | $       | 3,629    |            |            | $        | 3,343     |             |  | $        | 1,416 |        |       | $ | 1,040       |  |              | $ | 15   |  |  | $ | 3,491 |   |  | $ | 6,760  |   |  | $ | (7,398 | ) |  | $ | 35,441 |  
|Average loans                                           |  |         | 5,447            |         |                     |         | 6,973    |          |  |         | 7,108 |         |        |         |         |            |            |          | 2,448     |             |  |          | 1,217 |        |       |   | 897         |  |              |   | 2    |  |  |   | 441   |   |  |   | 58     |   |  |   | (43    | ) |  |   | 24,548 |  
|Average deposits                                        |  |         | 13,719           |         |                     |         | 2,754    |          |  |         | 13    |         |        |         | 1,470    |            |            |          | 6,493     |             |  |          | 10    |        |       |   | 22          |  |              |   | 52   |  |  |   | 159   |   |  |   |       |   |  |   | (60    | ) |  |   | 24,632 |  
|Nine Months Ended September 30,
2002:                   |  |         |                  |         |                     |         |          |          |  |         |       |         |        |         |          |            |            |          |           |             |  |          |       |        |       |   |             |  |              |   |      |  |  |   |       |   |  |   |        |   |  |   |        |   |  |   |        |  
|Net interest income                                     |  | $       | 356.0            |         |                     | $       | 182.4    |          |  | $       | 132.9 |         |        | $       | 40.5     |            |            | $        | 196.5     |             |  | $        | 53.1  |        |       | $ | 20.5        |  |              | $ | 0.2  |  |  | $ | (23.9 | ) |  | $ | (91.1  | ) |  | $ |       |   |  | $ | 867.1  |  
|Noninterest income                                      |  |         | 105.5            |         |                     |         | 20.2     |          |  |         | 8.2   |         |        |         | 16.4     |            |            |          | 46.8      |             |  |          | 19.3  |        |       |   | 4.9         |  |              |   | 22.3 |  |  |   | (0.9  | ) |  |   |       |   |  |   |       |   |  |   | 242.7  |  
|Noninterest expense                                     |  |         | 291.8            |         |                     |         | 66.4     |          |  |         | 41.9  |         |        |         | 35.9     |            |            |          | 130.5     |             |  |          | 30.9  |        |       |   | 5.5         |  |              |   | 17.7 |  |  |   | (11.6 | ) |  |   | 3.3    |   |  |   |       |   |  |   | 612.3  |  
|Provision for credit losses                             |  |         | 11.3             |         |                     |         | 5.3      |          |  |         | 37.7  |         |        |         |         |            |            |          | 6.2       |             |  |          | 7.0   |        |       |   | 0.6         |  |              |   |     |  |  |   | 1.1   |   |  |   |       |   |  |   |       |   |  |   | 69.2   |  
|Tax provision (benefit)                                 |  |         | 64.5             |         |                     |         | 53.2     |          |  |         | 25.0  |         |        |         | 7.0      |            |            |          | 40.9      |             |  |          | 13.1  |        |       |   | 6.1         |  |              |   | 1.9  |  |  |   | (4.3  | ) |  |   | (38.2  | ) |  |   | 0.1    |   |  |   | 169.3  |  
|                                                        |  |         |                  |         |                     |         |          |          |  |         |       |         |        |         |          |            |            |          |           |             |  |          |       |        |       |   |             |  |              |   |      |  |  |   |       |   |  |   |        |   |  |   |        |   |  |   |        |  
|Net income (loss)                                       |  | $       | 93.9             |         |                     | $       | 77.7     |          |  | $       | 36.5  |         |        | $       | 14.0     |            |            | $        | 65.7      |             |  | $        | 21.4  |        |       | $ | 13.2        |  |              | $ | 2.9  |  |  | $ | (10.0 | ) |  | $ | (56.2  | ) |  | $ | (0.1   | ) |  | $ | 259.0  |  
|                                                        |  |         |                  |         |                     |         |          |          |  |         |       |         |        |         |          |            |            |          |           |             |  |          |       |        |       |   |             |  |              |   |      |  |  |   |       |   |  |   |        |   |  |   |        |   |  |   |        |  
|Segment assets at September 30                          |  | $       | 7,597            |         |                     | $       | 7,821    |          |  | $       | 6,869 |         |        | $       | 3,477    |            |            | $        | 3,199     |             |  | $        | 1,315 |        |       | $ | 1,098       |  |              | $ | 13   |  |  | $ | 3,309 |   |  | $ | 7,572  |   |  | $ | (8,013 | ) |  | $ | 34,257 |  
|Segment goodwill at September 30                        |  |         | 1,208            |         |                     |         | 703      |          |  |         | 306   |         |        |         |         |            |            |          | 650       |             |  |          | 216   |        |       |   | 118         |  |              |   | 10   |  |  |   |      |   |  |   | 173    |   |  |   |       |   |  |   | 3,384  |  
|Average assets                                          |  | $       | 6,545            |         |                     | $       | 6,659    |          |  | $       | 6,548 |         |        | $       | 2,341    |            |            | $        | 3,341     |             |  | $        | 1,345 |        |       | $ | 1,007       |  |              | $ | 13   |  |  | $ | 2,985 |   |  | $ | 6,749  |   |  | $ | (7,119 | ) |  | $ | 30,414 |  
|Average loans                                           |  |         | 4,788            |         |                     |         | 5,682    |          |  |         | 6,181 |         |        |         |         |            |            |          | 2,482     |             |  |          | 1,128 |        |       |   | 890         |  |              |   |     |  |  |   | 566   |   |  |   | 22     |   |  |   |       |   |  |   | 21,739 |  
|Average deposits                                        |  |         | 12,211           |         |                     |         | 1,711    |          |  |         | 9     |         |        |         | 1,516    |            |            |          | 5,990     |             |  |          | 10    |        |       |   | 21          |  |              |   | 45   |  |  |   | 184   |   |  |   | (33    | ) |  |   |       |   |  |   | 21,664 |  

(1) The material net interest income and noninterest income items in the
Other column relate to Treasury activities of $22.6 million and $55.1 million
and unallocated other income of $2.6 million and $16.1 million for the three
and nine months ended September 30, 2003, respectively. The material net
interest income and noninterest income items in the Other column for the three
and nine months ended September 30, 2002 resulted substantially from Treasury
activities of $11.9 million and $30.0 million and unallocated other income of
$10.3 million and $26.9 million, respectively.

The material noninterest expense items in the Other column for the three and
nine months ended September 30, 2003, are substantially derived from Treasury
activities and unallocated administrative items. The noninterest expense items
in the Other column for the three months ended September 30, 2002 are mostly
the result of unallocated merger-related costs of $6.2 million, Treasury
activities of $4.7 million and unallocated administrative items
of $3.9 million. The material noninterest expense items in the Other column for the
nine months ended September 30, 2002 resulted primarily from Treasury
activities of $11.8 million, unallocated merger-related costs of $15.0 million
and unallocated administrative items of $9.1 million.

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 three and nine months ended September 30, 2003 and
2002.

(2) Other is composed of Administrative and Syndicated and Media Lending.
Administrative represents administrative support areas including Information
Management and Operations and Finance and Investment.

14



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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) (Continued)

The material items in the other column
related to net interest income for the three and nine months ended
September 30, 2003 resulted from $7.9 million and
$29.1 million, respectively, in transfer pricing adjustments.

The material items in the other column
related to noninterest income for the three and nine months ended
September 30, 2003 resulted primarily from a $0.7 million and
$4.1 million gain on sale of a leveraged lease, respectively.

The material items in the other column
related to noninterest expense for the three and nine months ended
September 30, 2003 resulted from unallocated Treasury activities
of $5.1 million and $11.6 million, respectively, partially
offset by a pre-tax $2.6 million reduction in net investment in
leveraged leases in September 2003.

The material items in the Other column
related to average assets are
unallocated Treasury securities for the periods presented. The material items
in the Other column related to average deposits are unallocated balances
for the three and nine months ended September 30, 2003 and 2002.

(3) The Other BancWest category in the table above consists primarily of
BancWest Corporation (Parent Company), FHL Lease Holding Company, Inc.,
BancWest Capital I and First Hawaiian Capital I.

(4) The reconciling items in the above table are principally intercompany
eliminations.

15



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##### Table of Contents



BancWest Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)



|5. |  | Intangible Assets
|-- |  | -----------------

The Company adopted SFAS 142 on January 1, 2002. The most significant
changes made by SFAS 142 are that goodwill and other indefinite-lived
intangible assets are no longer amortized and will be tested for impairment at
least annually. As of
September 30, 2003, the Company had goodwill of $3.2 billion. The table below
provides the breakdown of goodwill by reportable segment and the change during
the year.

|                                  |                 |         |                  |         |                     |         |          |         |        |         |          |         |            |            |           |          |  |        |     |   |              |   |     |   |  |   |    |   |  |   |   |   |  |   |       |    |  
|--------------------------------- | --------------- | ------- | ---------------- | ------- | ------------------- | ------- | -------- | ------- | ------ | ------- | -------- | ------- | ---------- | ---------- | --------- | -------- |  | ------ | --- | - | ------------ | - | --- | - |  | - | -- | - |  | - | - | - |  | - | ----- | -- | -
|                                  |                 |         | Bank of the West |         | First Hawaiian Bank |         |          |         |        |         |          |         |           
|                                  |                 |         |                  |         |                     |         |          |         |        |         |          |         |           
|                                  |                 |         | Regional         |         | Commercial          |         | Consumer |         | Retail |         | Consumer |         | Commercial |            | Financial |          |  |        |     |   | Consolidated
|(in millions)                     |                 | Banking |                  | Banking |                     | Finance |          | Banking |        | Banking |          | Banking |            | Management |           | BancWest |  | Totals
|                                  |                 |         |                  |         |                     |         |          |         |        |         |          |         |            |            |           |          |  |       
|Balance as of January 1, 2003:    |                 | $       | 1,215            |         |                     | $       | 707      |         |        | $       | 308      |         |            | $          | 650       |          |  | $      | 216 |   |              | $ | 118 |   |  | $ | 10 |   |  | $ | 5 |   |  | $ | 3,229 |   
|Purchase accounting adjustment:   |                 |         |                  |         |                     |         |          |         |        |         |          |         |            |            |           |          |  |        |     |   |              |   |     |   |  |   |    |   |  |   |   |   |  |   |       |   
|                                  | UCB             |         |                  | (1      | )                   |         |          |        |        |         |          |        |            |            |           |         |  |        |     |  |              |   |     |  |  |   |    |  |  |   |   |  |  |   |       | (1 | )
|                                  | Trinity Capital |         |                  |        |                     |         |          | (1      | )      |         |          |        |            |            |           |         |  |        |     |  |              |   |     |  |  |   |    |  |  |   |   |  |  |   |       | (1 | )
|                                  |                 |         |                  |         |                     |         |          |         |        |         |          |         |            |            |           |          |  |        |     |   |              |   |     |   |  |   |    |   |  |   |   |   |  |   |       |   
|Balance as of September 30, 2003: |                 | $       | 1,214            |         |                     | $       | 706      |         |        | $       | 308      |         |            | $          | 650       |          |  | $      | 216 |   |              | $ | 118 |   |  | $ | 10 |   |  | $ | 5 |   |  | $ | 3,227 |   
|                                  |                 |         |                  |         |                     |         |          |         |        |         |          |         |            |            |           |          |  |        |     |   |              |   |     |   |  |   |    |   |  |   |   |   |  |   |       |   

The estimated annual amortization expense for finite-lived intangible assets,
primarily core deposit intangibles arising from the BNP Paribas merger and the
acquisition of UCB, is approximately $23 million (pre-tax) for each of the
years from 2003 to 2007. The details of our intangible assets are depicted
below:

|                                  |       |   |          |         |              |   |                |        |  |   |         |         | 
|--------------------------------- | ----- | - | -------- | ------- | ------------ | - | -------------- | ------ |  | - | ------- | ------- | 
|                                  |       |   | Gross    |         |              |   |                |        |  |   |        
|                                  |       |   | Carrying |         | Accumulated  |   | Net Book      
|                                  |       |   | Amount   |         | Amortization |   | Value         
|                                  |       |   |          |         |              |   |               
|                                  |       |   |          |         |              |   | (in thousands) |        |  |   |        
|Balance as of September 30, 2003: |       |   |          |         |              |   |                |        |  |   |         |        
|Core Deposits                     |       | $ | 230,538  |         |              | $ | 37,418         |        |  | $ | 193,120 |        
|                                  |       |   |          |         |              |   |                |        |  |   |         |        
|                                  | Total |   | $        | 230,538 |              |   | $              | 37,418 |  |   | $       | 193,120 | 
|Balance as of December 31, 2002:  |       |   |          |         |              |   |                |        |  |   |         |        
|Core Deposits                     |       | $ | 230,538  |         |              | $ | 20,127         |        |  | $ | 210,411 |        
|                                  |       |   |          |         |              |   |                |        |  |   |         |        
|                                  | Total |   | $        | 230,538 |              |   | $              | 20,127 |  |   | $       | 210,411 | 
|Balance
as of September 30, 2002: |       |   |          |         |              |   |                |        |  |   |         |        
|Core Deposits                     |       | $ | 230,538  |         |              | $ | 14,364         |        |  | $ | 216,174 |        
|                                  |       |   |          |         |              |   |                |        |  |   |         |        
|                                  | Total |   | $        | 230,538 |              |   | $              | 14,364 |  |   | $       | 216,174 | 



|6. |  | Financial Interpretation No. 46: Consolidation of Variable Interest
Entities
|-- |  | ----------------------------------------------------------------------------

In
January 2003, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 46, Consolidation of Variable Interest Entities (FIN 46).
FIN 46 provides guidance on how to identify a variable interest entity and
determine when the assets, liabilities, noncontrolling interests and results of
operations of a variable interest entity should be consolidated by the primary
beneficiary. FIN 46 requires that a variable interest entity (VIE) be
consolidated by a company if that company meets the definition of the VIEs
primary beneficiary. The primary beneficiary is the enterprise that will
absorb a majority of the risk of loss from the VIEs activities or is entitled
to receive a majority of the VIEs residual returns or both. The recognition
and measurement provisions of FIN 46 apply at inception to any variable
interest entity formed after January 31, 2003, and becomes effective for
existing variable interest entities on the first interim or annual reporting
period ending after December 15, 2003. The Company adopted the
consolidation provisions of
FIN 46 in the third quarter for one variable interest entity
formed prior to February 1, 2003, REFIRST, Inc.

REFIRST, Inc. is a VIE that was created by a nonrelated
third party to
construct, finance and hold title to our administrative headquarters building
in Honolulu, First Hawaiian Center (FHC). We entered into a noncancelable
operating lease for FHC with REFIRST, Inc. that terminates on December 1, 2003.
Our intention is to purchase FHC at the end of the lease term. Prior to July 1, 2003,
we were not required to consolidate REFIRST, Inc. into our
consolidated financial statements. However, upon our

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implementation of FIN 46, REFIRST, Inc. was consolidated into BancWest
effective July 1, 2003, including the depreciation expense of
FHC and interest expense on the financing. The provisions of FIN 46 required us to
record a cumulative effect of an accounting change upon its implementation. The
amount of such cumulative effect, (essentially, a retrospective depreciation
charge for an 18-month period covering the time in which the building was last
revalued for purchase-accounting purposes) as it relates to the consolidation
of REFIRST, Inc., recognized in July 2003 was an after-tax charge to earnings
of approximately $2.4 million. Additionally, we increased total assets by
approximately $160 million (principally due to the addition of the FHC
building), increased debt by approximately $193.9 million, reduced the deferred
tax liability by approximately $1.7 million and decreased the reserve for the
guaranteed residual value upon lease termination of $30 million.

The Company has identified investments that meet the definition of a VIE
under FIN 46 but do not meet the requirements for consolidation. The Company
owns several limited partnership interests in low-income housing developments
in conjunction with the Community Reinvestment Act. Limited partners shall not
participate in the control of the Partnerships business. The general partner
exercises the day-to-day control and management of the projects. The general
partner has exclusive control over the Partnerships business and shall have
all of the rights, powers, and authority generally conferred by law or
necessary, advisable or consistent with accomplishing the Partnerships
business. BancWest is considered a defacto agent for the general partner and
cannot sell the investments without the general partners consent. The business
purpose of these entities is to provide affordable housing within the Companys
service area in return for tax credits and tax loss deductions. Our
current pledge amount for these investments is approximately
$77 million with approximately $30 million as the residual
contribution outstanding. We are not obligated to fund deficiencies
of the limited partnerships and our maximum exposure to losses is limited to
our pledge amount. A bargain purchase option is available for the general
partner to purchase the Companys portion of interest in the limited
partnerships. These partnerships were entered into from 1989
through 2003.

On June
23, 1997 and October 20, 2000, the Company formed two trusts, First
Hawaiian Capital I (FH Trust) and BancWest Capital I (BWE
Trust) (the Trusts), respectively. The Trusts issued preferred and
common capital securities. The preferred capital securities were sold
to the public; BancWest owns the common securities. The purpose of
these entities is to allow for the issuance of preferred capital
securities that qualify for inclusion in Tier 1 regulatory
capital. At the Trusts inception, we issued junior subordinated
deferrable interest debentures to the Trusts in return for either
capital securities, in the case of BWE Trust, or the proceeds from
capital securities that were issued from FH Trust. Historically,
these trusts have been consolidated and the related trust preferred
securities have been treated as Tier 1 capital under Federal
Reserve rules and regulations. The Company is still assessing the
impact of FIN 46 on the Trusts and may no longer be permitted to
consolidate them in preparing its financial statements. The Company
plans to complete this assessment during the fourth quarter of 2003.

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BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS




Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations




OVERVIEW

Headquartered in Honolulu, Hawaii, with offices in San Francisco, BancWest
is a financial holding company with assets of $37.4 billion at September 30,
2003. BancWest, through its subsidiaries, operates a general commercial
banking business and other businesses related to banking. Its principal assets
are its investments in Bank of the West, a State of California-chartered bank;
and First Hawaiian, a State of Hawaii-chartered bank. We provide a wide range
of general commercial banking services, providing retail and corporate banking,
trust and insurance services to individuals, institutions, businesses and
governments.

Net income for the third quarter of 2003 was $112.2 million, compared with
$97.1 million for the same period in 2002. Net income for the first nine
months of 2003 was $322.0 million compared with $259.1 million for the same
period in 2002. Net interest income was $331.4 million for the third quarter
of 2003 and $967.9 million for the first nine months of 2003 compared with
$320.7 million and $867.1 million for the same periods of 2002. Noninterest
income was $99.6 million and $295.0 million for the third quarter and first
nine months of 2003, respectively, compared with $91.6 million and $242.7
million for the same periods in 2002. Noninterest expense totaled $223.0
million and $673.4 million for the third quarter and first nine months of 2003,
respectively, compared with $224.4 million and $612.3 million for the same
periods of 2002.

BancWest had total assets of $37.4 billion at September 30, 2003, up 9.3%
from a year earlier. Investment securities totaled $5.4 billion, an increase
of 45.9% as compared to the same period in 2002. Loans and leases totaled
$25.3 billion, an increase of 5.0% compared to the same period in 2002.
Deposits were $25.9 billion, up 6.4% from a year earlier.

BancWests nonperforming assets were reduced significantly to 0.71% of
loans and foreclosed properties at September 30, 2003, an improvement from
1.12% at September 30, 2002. The provision for credit losses was $24.1 million
for the third quarter of 2003 compared to $26.3 million for the same period in
2002. BancWests allowance for credit losses was 1.54% of total loans and
leases at September 30, 2003, compared to 1.59% at December 31, 2002 and 1.60%
at September 30, 2002.




NEW PRONOUNCEMENTS

In
January 2003, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 46, Consolidation of Variable Interest
Entities (FIN 46). FIN 46 provides guidance on
consolidation and how to identify a variable interest entity (VIE)
and determine when the assets, liabilities, noncontrolling interests
and results of operations of a variable interest entity should be
consolidated. The recognition and measurement provisions of
FIN 46 apply at inception to any variable interest entity formed
after January 31, 2003, and become effective for existing variable interest entities on
the first interim or annual reporting period ending after
December 15, 2003. The Company consolidated one variable
interest entity, REFIRST, Inc., during the third quarter. REFIRST,
Inc. finances and holds title to our administrative headquarters
building in Honolulu, First Hawaiian Center (FHC). Upon adoption, the
Company recognized an after-tax charge to earnings of approximately
$2.4 million accounted for as a cumulative effect of an
accounting change. Additionally, we increased total assets by
approximately $160 million (principally due to the addition of
the FHC building), increased debt by approximately
$193.9 million, reduced the deferred tax liability by
approximately $1.7 million and decreased the reserve for the
guaranteed residual value upon lease termination of $30 million.
Please refer to Note 6 Financial Interpretation No. 46:
Consolidation of Variable Interest Entities for details.

In April 2003, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) 149, Amendment of Statement
133 on Derivative Instruments and Hedging Activities. This Statement clarifies
under what circumstances a contract with an initial net investment meets the
characteristic of a derivative as discussed in SFAS 133. In addition, it
clarifies when a derivative contains a financing component that warrants
special reporting. SFAS 149 amends certain other existing pronouncements.
Those changes will result in more consistent reporting of contracts that are
derivatives in their entirety or that contain embedded derivatives that warrant
separate accounting. This statement will be applied prospectively and is
effective for contracts entered into or modified after June 30, 2003. The
adoption of SFAS 149 did not have a material impact on our consolidated
financial position, results of operations or cash flows.

In May 2003, the FASB issued SFAS 150, Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity (SFAS 150).
SFAS 150 establishes standards for the classification and measurement of
financial instruments with

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BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

characteristics of both liabilities and equity. This standard is effective
beginning in the third quarter of 2003. The adoption of this standard did not
have a material impact on our consolidated financial position, results of
operations or cash flows.




FORWARD-LOOKING STATEMENTS

Certain matters contained in this filing are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. Our
forward-looking statements (such as those concerning our plans, expectations,
estimates, strategies, projections and goals) involve risks and uncertainties
that could cause actual results to differ materially from those discussed in
the statements. Readers should carefully consider those risks and uncertainties
in reading this report. Factors that could cause or contribute to such
differences include, but are not limited to: (1) global, national and local
economic and market conditions, specifically with respect to changes in the
United States economy and geopolitical uncertainties; (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 effect 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 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.
Our forward-looking statements are based on managements current views about
future events. Those statements speak only as of the date on which they are
made. We do not intend to update forward-looking statements, and, except as
required by law, we disclaim any obligation or undertaking to update or revise
any such statements to reflect any change in our expectations or any change in
events, conditions, circumstances or assumptions on which forward-looking
statements are based.




MONETARY POLICY AND ECONOMIC CONDITIONS

Our earnings and businesses are affected not only by general economic
conditions (both domestic and international), but also by the monetary policies
of various governmental regulatory authorities of (i) the United States and
foreign governments and (ii) international agencies. In particular, our
earnings and growth may be affected by actions of the Federal Reserve Board in
connection with its implementation of national monetary policy through its open
market operations in United States Government securities, control of the
discount rate and establishment of reserve requirements against both member and
non-member financial institutions deposits. These actions have a significant
effect on the overall growth and distribution of loans and leases, investments
and deposits, as well as on the rates earned on loans and leases or paid on
deposits. It is difficult to predict future changes in monetary policies.




CRITICAL ACCOUNTING POLICIES

The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make a number of judgments, estimates and assumptions that affect
the reported amount of assets, liabilities, income and expenses in our
consolidated financial statements and accompanying notes. We believe that the
judgments, estimates and assumptions used in the preparation of our
consolidated financial statements are appropriate given the factual
circumstances as of September 30, 2003. We have established policies and
procedures that are intended to ensure valuation methods are well controlled
and applied consistently from period to period. In addition, the policies and
procedures are intended to ensure that the process for changing methodologies
occurs in an appropriate manner. However, given the sensitivity of our
consolidated financial statements to these critical accounting policies, the
use of other judgments, estimates and assumptions could result in material
differences in our results of operations or financial condition.

Our accounting policies are discussed in detail in the notes to the
consolidated financial statements, Note 1 (Summary of Significant Accounting
Policies) of our 2002 Annual Report on Form 10-K. Various elements of our
accounting policies, by their nature, are inherently subject to estimation
techniques, valuation assumptions and other subjective assessments. In
particular, we have identified two policies that, due to the judgments,
estimates and assumptions inherent in those policies, are critical to an
understanding of our consolidated financial statements.

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BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS



| |  |  | Allowance for Credit Losses (the Allowance): The allowance for
credit losses represents our best estimate of losses inherent in the
existing loan portfolio. The determination of the adequacy of the
Allowance is ultimately one of management judgment, which includes
consideration of many factors such as: (1) the amount of problem and
potential problem loans and leases; (2) net charge-off experience; (3)
changes in the composition of the loan and lease portfolio by type and
location of loans and leases; (4) changes in overall loan and lease risk
profile and quality; (5) general economic factors; (6) specific regional
economic factors; and (7) the fair value of collateral. Using this
methodology, we allocate the Allowance to individual loans and leases
and to the categories of loans and leases, representing probable losses
based on available information. At least quarterly, we conduct internal
credit analyses to determine which loans and leases are impaired. As a
result, we allocate specific amounts of the Allowance to individual loan
and lease relationships. Note 1 (Summary of Significant Accounting
Policies) to the consolidated financial statements of our 2002 Annual
Report on Form 10-K describes how we evaluate loans for impairment. Some
categories of loans and leases are not subjected to a loan-by-loan
credit analysis. Management makes an allocation to these categories
based on our statistical analysis of historic trends of impairment and
charge-offs of such loans and leases. Additionally, we allocate a
portion of the Allowance based on risk classifications of certain loan
types. Some of the Allowance is not allocated to specific impaired loans
because of the subjective nature of the process of estimating an
adequate allowance for credit losses, economic uncertainties and other
factors.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | Fair Value of Assets: Certain assets and liabilities are reflected at
their estimated fair value in the consolidated financial statements.
Such amounts are based on either quoted market prices or estimated
values derived by utilizing dealer quotes, market comparisons or
internally generated modeling techniques. Our internal models generally
involve present value of cash flow techniques.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |   |  | One of the most significant assets for which we estimate fair value is
goodwill. As of September 30, 2003, we had $3.2 billion in goodwill on our
Consolidated Balance Sheet. SFAS No. 142 requires that we perform a
two-step impairment test for goodwill at least annually. However, if an
event occurs or circumstances change during the year indicating potential
impairment, goodwill must be tested. The testing process involves
estimating cash flows for future periods. The first step compares the fair
value of the reporting unit, which is an individual business segment of the
Company, to the carrying amount. If the carrying amount exceeds the fair
value, then a second step is conducted whereby the implied fair value of
the goodwill is compared with the carrying amount of the goodwill. If the
implied fair value of the goodwill is less than the carrying amount, an
impairment loss is recognized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

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BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS




CONSOLIDATED FINANCIAL HIGHLIGHTS(Unaudited)

|                                                                                |                              |                     |            |                    |       |                   |            |                        |       |      |            |   |       |   |            |   |       |  
|------------------------------------------------------------------------------- | ---------------------------- | ------------------- | ---------- | ------------------ | ----- | ----------------- | ---------- | ---------------------- | ----- | ---- | ---------- | - | ----- | - | ---------- | - | ----- | -
|                                                                                |                              |                     |            | Three Months Ended |       | Nine Months Ended
|                                                                                |                              |                     |            | September 30,      |       | September 30,    
|                                                                                |                              |                     |            |                    |       |                  
|                                                                                |                              |                     |            | 2003               |       | 2002              |            | 2003                   |       | 2002
|                                                                                |                              |                     |            |                    |       |                   |            |                        |       |     
|                                                                                |                              |                     |            |                    |       |                   |            | (dollars in thousands) |       |      |            |  
|Earnings:                                                                       |                              |                     |            |                    |       |                   |            |                        |       |      |            |   |       |   |            |  
|Net interest income                                                             |                              | $                   | 331,362    |                    |       | $                 | 320,734    |                        |       | $    | 967,926    |   |       | $ | 867,108    |  
|Provision for credit losses                                                     |                              |                     | 24,145     |                    |       |                   | 26,300     |                        |       |      | 65,695     |   |       |   | 69,209     |  
|Noninterest income                                                              |                              |                     | 99,626     |                    |       |                   | 91,639     |                        |       |      | 295,034    |   |       |   | 242,692    |  
|Noninterest expense                                                             |                              |                     | 222,963    |                    |       |                   | 224,364    |                        |       |      | 673,412    |   |       |   | 612,282    |  
|Tax provision                                                                   |                              |                     | 69,268     |                    |       |                   | 64,651     |                        |       |      | 199,498    |   |       |   | 169,256    |  
|Income before cumulative effect of accounting change                            |                              |                     | 114,612    |                    |       |                   | 97,058     |                        |       |      | 324,355    |   |       |   | 259,053    |  
|Cumulative effect of accounting change, net of tax                              |                              |                     | 2,370      |                    |       |                   |           |                        |       |      | 2,370      |   |       |   |           |  
|Net Income                                                                      |                              | $                   | 112,242    |                    |       | $                 | 97,058     |                        |       | $    | 321,985    |   |       | $ | 259,053    |  
|Selected Financial Ratios:                                                      |                              |                     |            |                    |       |                   |            |                        |       |      |            |   |       |   |            |  
|Return on average total assets (ROA)                                            |                              |                     | 1.21       | %                  |       |                   | 1.13       | %                      |       |      | 1.21       | % |       |   | 1.14       | %
|Return on average stockholders equity (ROE)                                    |                              |                     | 10.83      |                    |       |                   | 9.99       |                        |       |      | 10.70      |   |       |   | 10.50      |  
|Net interest margin (taxable-equivalent basis)                                  |                              |                     | 4.26       |                    |       |                   | 4.52       |                        |       |      | 4.37       |   |       |   | 4.58       |  
|Allowance for credit losses to total loans and leases
(at September 30)         |                              |                     | 1.54       |                    |       |                   | 1.60       |                        |       |      | 1.54       |   |       |   | 1.60       |  
|Nonperforming assets to total assets (at September 30)                          |                              |                     | 0.48       |                    |       |                   | 0.79       |                        |       |      | 0.48       |   |       |   | 0.79       |  
|Allowance for credit losses to nonperforming
loans and leases (at September 30) |                              |                     | 2.44       | x                  |       |                   | 1.52       | x                      |       |      | 2.44       | x |       |   | 1.52       | x
|Average equity to average total assets                                          |                              |                     | 11.17      | %                  |       |                   | 11.36      | %                      |       |      | 11.35      | % |       |   | 10.85      | %
|Regulatory Capital Ratios:                                                      |                              |                     |            |                    |       |                   |            |                        |       |      |            |   |       |   |            |  
|                                                                                | Leverage Ratio(1):           |                     |            |                    |       |                   |            |                        |       |      |            |   |       |   |            |   |      
|                                                                                |                              | Bank of the West    |            |                    | 9.36  | %                 |            |                        | 8.94  | %    |            |   | 9.36  | % |            |   | 8.94  | %
|                                                                                |                              | First Hawaiian Bank |            |                    | 9.68  |                   |            |                        | 9.08  |      |            |   | 9.68  |   |            |   | 9.08  |  
|                                                                                | Tier 1 capital (risk-based): |                     |            |                    |       |                   |            |                        |       |      |            |   |       |   |            |   |      
|                                                                                |                              | Bank of the West    |            |                    | 10.56 |                   |            |                        | 9.84  |      |            |   | 10.56 |   |            |   | 9.84  |  
|                                                                                |                              | First Hawaiian Bank |            |                    | 12.51 |                   |            |                        | 11.06 |      |            |   | 12.51 |   |            |   | 11.06 |  
|                                                                                | Total capital (risk-based):  |                     |            |                    |       |                   |            |                        |       |      |            |   |       |   |            |   |      
|                                                                                |                              | Bank of the West    |            |                    | 12.81 |                   |            |                        | 12.16 |      |            |   | 12.81 |   |            |   | 12.16 |  
|                                                                                |                              | First Hawaiian Bank |            |                    | 14.88 |                   |            |                        | 13.47 |      |            |   | 14.88 |   |            |   | 13.47 |  
|Balance Sheet Data Averages:                                                    |                              |                     |            |                    |       |                   |            |                        |       |      |            |   |       |   |            |  
|Average assets                                                                  |                              |                     | 36,797,885 |                    |       |                   | 33,937,459 |                        |       |      | 35,441,404 |   |       |   | 30,414,475 |  
|Average loans(2)                                                                |                              |                     | 25,199,215 |                    |       |                   | 24,067,661 |                        |       |      | 24,548,196 |   |       |   | 21,739,282 |  
|Average deposits                                                                |                              |                     | 25,422,161 |                    |       |                   | 24,095,238 |                        |       |      | 24,631,586 |   |       |   | 21,663,686 |  
|Average stockholders equity                                                    |                              |                     | 4,110,928  |                    |       |                   | 3,854,560  |                        |       |      | 4,023,643  |   |       |   | 3,299,628  |  
|Balance Sheet Data At Period End:                                               |                              |                     |            |                    |       |                   |            |                        |       |      |            |   |       |   |            |  
|Assets                                                                          |                              |                     | 37,425,502 |                    |       |                   | 34,256,500 |                        |       |      | 37,425,502 |   |       |   | 34,256,500 |  
|Loans(2)                                                                        |                              |                     | 25,343,837 |                    |       |                   | 24,141,513 |                        |       |      | 25,343,837 |   |       |   | 24,141,513 |  
|Deposits                                                                        |                              |                     | 25,920,602 |                    |       |                   | 24,356,862 |                        |       |      | 25,920,602 |   |       |   | 24,356,862 |  
|Stockholders equity                                                            |                              |                     | 4,157,522  |                    |       |                   | 3,931,779  |                        |       |      | 4,157,522  |   |       |   | 3,931,779  |  



|(1) |  | The capital leverage rates are based on quarterly averages.                       
|--- |  | ----------------------------------------------------------------------------------
|   
|(2) |  | These balances include loans held-for-sale and are not adjusted for credit
losses.

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BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS




NET INTEREST INCOME

Net interest income increased 3.3% in the three months ended September 30, 2003
to $331.4 million from $320.7 million in the corresponding period last year.
Net interest income increased to $967.9 million, a growth of 11.6% in the nine
months ending September 30, 2003 from $867.1 million in the same nine-month
period last year. The margins in the three and nine-month periods ending
September 30, 2003 decreased in a record low interest rate environment in which
the yields on our earning assets declined faster than the rates on our funding
sources. Increases in average earning assets were partially offset by
the impact of the decreased margin.

Average earning assets increased by $2.7 billion and $4.3 billion or 9.7% and
17.0%, respectively, in the three and nine months ended September 30, 2003 from
the corresponding periods last year. These increases were primarily driven by
purchases of investment securities, residential real estate loans and
originations of consumer loans. In addition, our March 2002 acquisition of
United California Bank (UCB) increased both our investment securities and loans
and leases. We significantly increased our purchasing of investment securities
in the three months ended September 30, 2003 from the comparable period last
year. Average investment securities increased $1.7 billion and $1.5 billion or
49.1% and 47.7%, respectively, in the three and nine month periods ended
September 30, 2003 compared to the corresponding periods last year. Average
loans and leases outstanding grew by $1.1 billion or 4.7% during the three-month period ended
September 30, 2003 and 12.9% or $2.8 billion during the nine-month period ended
September 30, 2003 compared to the same periods last year.

For the three and nine months ended September 30, 2003 interest-bearing demand
deposits decreased 23.3% and 23.4% or $82.6 million and $83.7 million. Savings
deposits increased $1.1 billion and $1.9 billion or 12.4% and 23.9%,
respectively for the three and nine months ended September 30, 2003 compared to
last year. Short-term borrowing decreased 13.3% and 9.8% or $314.2 million and
$199.2 million, respectively, offset by a significant increase in long-term
borrowing of 66.0% and 57.6% or $1.6 billion and $1.4 billion in the three and
nine-month periods, respectively, ending September 30, 2003 from the same
periods in 2002. The shift from short-term to long-term debt was primarily a
result of finalizing the long-term financing for the portion of the UCB
acquisition ($800 million) that had been financed during the interim with
short-term debt.

In addition to a falling interest rate environment, our cost of funds was
lowered by an increase in average noninterest-bearing deposits of $948.1
million and $1.6 billion, or 14.9% and 30.5% in the three and nine months ended
September 30, 2003, respectively as compared to the same periods in 2002. The
percentage of average noninterest-bearing deposits to total average deposits
for the three and nine months ended September 30, 2003 increased to 28.7% and
28.3%, respectively, from 26.4% and 24.7% for the same periods in 2002.

The following table sets forth consolidated average balance sheets, as well as
an analysis of interest income/expense and yield/rate for each major category
of interest-earning assets and interest-bearing liabilities for the periods
indicated on a taxable equivalent basis. The tax equivalent adjustment is made
for items exempt from federal income taxes (assuming a 35% tax rate for 2003
and 2002) to make them comparable with taxable items before any income taxes
are applied.

22



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##### Table of Contents



BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |      |      |  
|------------------------------------- | ---------------------------------------------------------------------- | ----------------------------------------------- | ------------------------------------------------------ | ---------------- | ---------- | -------------------------------- | ---------- | ------- | ------- | -------- | ------ | ------- | ---- | ------- | --------- | ---------- | ---------- | ---------- | --------- | -------- | ------- | ------- | ------ | ---- | ---- | ---- | ---- | -
|                                      |                                                                        |                                                 |                                                        |                  |            | Three Months Ended September 30,
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 
|                                      |                                                                        |                                                 |                                                        |                  |            | 2003                             |            | 2002   
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |        
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         | Interest |        |         |      |         |           |            |            |            |           | Interest |         |         |        |     
|                                      |                                                                        |                                                 |                                                        |                  |            | Average                          |            | Income/ |         | Yield/   |        | Average |      | Income/ |           | Yield/    
|                                      |                                                                        |                                                 |                                                        |                  |            | Balance                          |            | Expense |         | Rate (1) |        | Balance |      | Expense |           | Rate (1)  
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |           
|                                      |                                                                        |                                                 |                                                        |                  |            | (dollars in thousands)          
|ASSETS                                |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|Earning assets:                       |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      | Interest-bearing deposits in other banks                               |                                                 | $                                                      | 273,327          |            |                                  | $          | 748     |         |          |        | 1.09    | %    |         | $         | 173,466    |            |            | $         | 822      |         |         |        | 1.88 | %   
|                                      | Federal funds sold and securities purchased under
agreements to resell |                                                 |                                                        | 153,472          |            |                                  |            | 406     |         |          |        | 1.05    |      |         |           | 392,523    |            |            |           | 1,724    |         |         |        | 1.74 |     
|                                      | Trading assets                                                         |                                                 |                                                        | 59,350           |            |                                  |            | 426     |         |          |        | 2.85    |      |         |           | 42,409     |            |            |           | 392      |         |         |        | 3.67 |     
|                                      | Investment securities: (2)                                             |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |     
|                                      |                                                                        | Taxable investment securities                   |                                                        |                  | 5,218,770  |                                  |            |         | 46,118  |          |        |         | 3.51 |         |           |            | 3,495,137  |            |           |          | 40,704  |         |        |      | 4.62 |     
|                                      |                                                                        | Non-taxable investment securities               |                                                        |                  | 15,663     |                                  |            |         | 240     |          |        |         | 6.08 |         |           |            | 15,001     |            |           |          | 228     |         |        |      | 6.03 |     
|                                      | Loans
and leases (3),(4)                                               |                                                 |                                                        | 25,199,215       |            |                                  |            | 376,696 |         |          |        | 5.93    |      |         |           | 24,067,661 |            |            |           | 400,825  |         |         |        | 6.61 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Total earning assets                            |                                                        |                  | 30,919,797 |                                  |            |         | 424,634 |          |        |         | 5.45 | %       |           |            | 28,186,197 |            |           |          | 444,695 |         |        |      | 6.26 | %   
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|Non-earning assets                    |                                                                        |                                                 | 5,878,088                                              |                  |            |                                  |            |         |         |          |        |         |      |         | 5,751,262 |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Total assets                                           |                  | $          | 36,797,885                       |            |         |         |          |        |         |      |         |           |            | $          | 33,937,459 |           |          |         |         |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|LIABILITIES AND STOCKHOLDERS EQUITY  |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      | Interest-bearing deposits and liabilities:                             |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |     
|                                      |                                                                        | Deposits:                                       |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |     
|                                      |                                                                        |                                                 | Domestic:                                              |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        | Interest-bearing |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |      |      |  
|                                      |                                                                        |                                                 |                                                        | Demand           |            | $                                | 271,111    |         |         | $        | 44     |         |      |         | 0.06      | %          |            | $          | 353,668   |          |         | $       | 267    |      |      |      | 0.30 | %
|                                      |                                                                        |                                                 |                                                        | Savings          |            |                                  | 10,399,436 |         |         |          | 13,637 |         |      |         | 0.52      |            |            |            | 9,255,123 |          |         |         | 29,013 |      |      |      | 1.24 |  
|                                      |                                                                        |                                                 |                                                        | Time             |            |                                  | 6,838,840  |         |         |          | 24,868 |         |      |         | 1.44      |            |            |            | 7,513,111 |          |         |         | 44,753 |      |      |      | 2.36 |  
|                                      |                                                                        |                                                 | Foreign                                                |                  |            | 615,304                          |            |         |         | 1,286    |        |         |      | 0.83    |           |            |            | 623,987    |           |          |         | 2,444   |        |      |      | 1.55 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Total interest-bearing deposits                 |                                                        |                  | 18,124,691 |                                  |            |         | 39,835  |          |        |         | 0.87 |         |           |            | 17,745,889 |            |           |          | 76,477  |         |        |      | 1.71 |     
|                                      |                                                                        | Short-term borrowings                           |                                                        |                  | 2,041,899  |                                  |            |         | 9,230   |          |        |         | 1.79 |         |           |            | 2,356,097  |            |           |          | 10,430  |         |        |      | 1.76 |     
|                                      |                                                                        | Long-term debt and capital securities           |                                                        |                  | 4,139,256  |                                  |            |         | 43,843  |          |        |         | 4.20 |         |           |            | 2,494,038  |            |           |          | 36,907  |         |        |      | 5.87 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Total interest-bearing deposits and liabilities |                                                        |                  | 24,305,846 |                                  |            |         | 92,908  |          |        |         | 1.52 |         |           |            | 22,596,024 |            |           |          | 123,814 |         |        |      | 2.17 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Interest rate spread                            |                                                        |                  |            |                                  |            |         |         |          |        |         | 3.93 | %       |           |            |            |            |           |          |         |         |        |      | 4.09 | %   
|                                      |                                                                        | Noninterest-bearing deposits                    |                                                        |                  | 7,297,470  |                                  |            |         |         |          |        |         |      |         |           |            | 6,349,349  |            |           |          |         |         |        |      |      |     
|                                      |                                                                        | Other liabilities                               |                                                        |                  | 1,083,641  |                                  |            |         |         |          |        |         |      |         |           |            | 1,137,526  |            |           |          |         |         |        |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Total liabilities                                      |                  |            | 32,686,957                       |            |         |         |          |        |         |      |         |           |            |            | 30,082,899 |           |          |         |         |        |      |      |      |     
|                                      |                                                                        | Stockholders equity                            |                                                        |                  | 4,110,928  |                                  |            |         |         |          |        |         |      |         |           |            | 3,854,560  |            |           |          |         |         |        |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Total liabilities and stockholders
equity             |                  | $          | 36,797,885                       |            |         |         |          |        |         |      |         |           |            | $          | 33,937,459 |           |          |         |         |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|Impact of noninterest-bearing sources |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          | 0.33   | %       |      |         |           |            |            |            |           |          |         |         | 0.43   | %   
|                                      |                                                                        |                                                 | Net interest income and margin on
total earning assets |                  |            |                                  |            |         |         | 331,726  |        |         |      | 4.26    | %         |            |            |            |           |          |         | 320,881 |        |      |      | 4.52 | %   
|                                      |                                                                        | Tax equivalent adjustment                       |                                                        |                  |            |                                  |            |         | 364     |          |        |         |      |         |           |            |            |            |           |          | 147     |         |        |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Net interest income                                    |                  |            |                                  |            |         | $       | 331,362  |        |         |      |         |           |            |            |            |           |          | $       | 320,734 |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                  |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     



|(1) |  | Annualized.                                                                                                                                                     
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(2) |  | Average investment securities were computed based on historical amortized
cost, 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 $17.5 million
and $13.7 million for the three months ended September 30, 2003 and 2002,
respectively.

23



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##### Table of Contents



BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |      |      |      |      |  
|------------------------------------- | ---------------------------------------------------------------------- | ----------------------------------------------- | ------------------------------------------------------ | ---------------- | ---------- | ------------------------------- | ---------- | --------- | --------- | -------- | ------ | ------- | ---- | ------- | --------- | ---------- | ---------- | ---------- | --------- | --------- | --------- | ------- | ------- | ---- | ---- | ---- | ---- | -
|                                      |                                                                        |                                                 |                                                        |                  |            | Nine Months Ended September 30,
|                                      |                                                                        |                                                 |                                                        |                  |            |                                
|                                      |                                                                        |                                                 |                                                        |                  |            | 2003                            |            | 2002     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |          
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           | Interest |        |         |      |         |           |            |            |            |           | Interest  |           |         |         |     
|                                      |                                                                        |                                                 |                                                        |                  |            | Average                         |            | Income/   |           | Yield/   |        | Average |      | Income/ |           | Yield/    
|                                      |                                                                        |                                                 |                                                        |                  |            | Balance                         |            | Expense   |           | Rate (1) |        | Balance |      | Expense |           | Rate (1)  
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |           
|                                      |                                                                        |                                                 |                                                        |                  |            | (dollars in thousands)         
|ASSETS                                |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     
|Earning assets:                       |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     
|                                      | Interest-bearing deposits in other banks                               |                                                 | $                                                      | 177,077          |            |                                 | $          | 1,632     |           |          |        | 1.23    | %    |         | $         | 142,777    |            |            | $         | 2,057     |           |         |         | 1.93 | %   
|                                      | Federal funds sold and securities purchased under
agreements to resell |                                                 |                                                        | 212,842          |            |                                 |            | 1,947     |           |          |        | 1.22    |      |         |           | 279,109    |            |            |           | 3,650     |           |         |         | 1.75 |     
|                                      | Trading assets                                                         |                                                 |                                                        | 55,877           |            |                                 |            | 1,171     |           |          |        | 2.80    |      |         |           | 23,507     |            |            |           | 591       |           |         |         | 3.36 |     
|                                      | Investment securities: (2)                                             |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |      |     
|                                      |                                                                        | Taxable investment securities                   |                                                        |                  | 4,616,617  |                                 |            |           | 131,986   |          |        |         | 3.82 |         |           |            | 3,124,281  |            |           |           | 114,881   |         |         |      | 4.92 |     
|                                      |                                                                        | Non-taxable investment securities               |                                                        |                  | 15,380     |                                 |            |           | 753       |          |        |         | 6.55 |         |           |            | 11,809     |            |           |           | 736       |         |         |      | 8.33 |     
|                                      | Loans
and leases (3),(4)                                               |                                                 |                                                        | 24,548,196       |            |                                 |            | 1,124,709 |           |          |        | 6.13    |      |         |           | 21,739,282 |            |            |           | 1,100,121 |           |         |         | 6.77 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     
|                                      |                                                                        | Total earning assets                            |                                                        |                  | 29,625,989 |                                 |            | $         | 1,262,198 |          |        |         | 5.70 | %       |           |            | 25,320,765 |            |           | $         | 1,222,036 |         |         |      | 6.45 | %   
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     
|Non-earning assets                    |                                                                        |                                                 | 5,815,415                                              |                  |            |                                 |            |           |           |          |        |         |      |         | 5,093,710 |            |            |            |           |           |           |         |         |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     
|                                      |                                                                        |                                                 | Total assets                                           |                  | $          | 35,441,404                      |            |           |           |          |        |         |      |         |           |            | $          | 30,414,475 |           |           |           |         |         |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     
|LIABILITIES AND STOCKHOLDERS EQUITY  |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     
|                                      | Interest-bearing deposits and liabilities:                             |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |      |     
|                                      |                                                                        | Deposits:                                       |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |      |      |     
|                                      |                                                                        |                                                 | Domestic:                                              |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |      |      |      |     
|                                      |                                                                        |                                                 |                                                        | Interest-bearing |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |      |      |      |      |  
|                                      |                                                                        |                                                 |                                                        | Demand           |            | $                               | 274,221    |           |           | $        | 271    |         |      |         | 0.13      | %          |            | $          | 357,969   |           |           | $       | 749     |      |      |      | 0.28 | %
|                                      |                                                                        |                                                 |                                                        | Savings          |            |                                 | 10,047,001 |           |           |          | 49,613 |         |      |         | 0.66      |            |            |            | 8,108,901 |           |           |         | 73,248  |      |      |      | 1.21 |  
|                                      |                                                                        |                                                 |                                                        | Time             |            |                                 | 6,737,313  |           |           |          | 86,625 |         |      |         | 1.72      |            |            |            | 7,280,520 |           |           |         | 137,799 |      |      |      | 2.53 |  
|                                      |                                                                        |                                                 | Foreign                                                |                  |            | 594,578                         |            |           |           | 4,197    |        |         |      | 0.94    |           |            |            | 568,272    |           |           |           | 7,088   |         |      |      | 1.67 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     
|                                      |                                                                        | Total interest-bearing deposits                 |                                                        |                  | 17,653,113 |                                 |            |           | 140,706   |          |        |         | 1.07 |         |           |            | 16,315,662 |            |           |           | 218,884   |         |         |      | 1.79 |     
|                                      |                                                                        | Short-term borrowings                           |                                                        |                  | 1,841,025  |                                 |            |           | 16,464    |          |        |         | 1.20 |         |           |            | 2,040,197  |            |           |           | 26,486    |         |         |      | 1.74 |     
|                                      |                                                                        | Long-term debt and capital securities           |                                                        |                  | 3,777,603  |                                 |            |           | 136,014   |          |        |         | 4.81 |         |           |            | 2,396,453  |            |           |           | 109,044   |         |         |      | 6.08 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     
|                                      |                                                                        | Total interest-bearing deposits and liabilities |                                                        |                  | 23,271,741 |                                 |            |           | 293,184   |          |        |         | 1.68 |         |           |            | 20,752,312 |            |           |           | 354,414   |         |         |      | 2.28 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     
|                                      |                                                                        | Interest rate spread                            |                                                        |                  |            |                                 |            |           |           |          |        |         | 4.02 | %       |           |            |            |            |           |           |           |         |         |      | 4.17 | %   
|                                      |                                                                        | Noninterest-bearing deposits                    |                                                        |                  | 6,978,473  |                                 |            |           |           |          |        |         |      |         |           |            | 5,348,024  |            |           |           |           |         |         |      |      |     
|                                      |                                                                        | Other liabilities                               |                                                        |                  | 1,167,547  |                                 |            |           |           |          |        |         |      |         |           |            | 1,014,511  |            |           |           |           |         |         |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     
|                                      |                                                                        |                                                 | Total liabilities                                      |                  |            | 31,417,761                      |            |           |           |          |        |         |      |         |           |            |            | 27,114,847 |           |           |           |         |         |      |      |      |     
|                                      |                                                                        | Stockholders equity                            |                                                        |                  | 4,023,643  |                                 |            |           |           |          |        |         |      |         |           |            | 3,299,628  |            |           |           |           |         |         |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     
|                                      |                                                                        |                                                 | Total liabilities and stockholders
equity             |                  | $          | 35,441,404                      |            |           |           |          |        |         |      |         |           |            | $          | 30,414,475 |           |           |           |         |         |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     
|Impact of noninterest-bearing sources |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          | 0.35   | %       |      |         |           |            |            |            |           |           |           |         | 0.41    | %   
|                                      |                                                                        |                                                 | Net interest income and margin on
total earning assets |                  |            |                                 |            |           |           | 969,014  |        |         |      | 4.37    | %         |            |            |            |           |           |           | 867,622 |         |      |      | 4.58 | %   
|                                      |                                                                        | Tax equivalent adjustment                       |                                                        |                  |            |                                 |            |           | 1,088     |          |        |         |      |         |           |            |            |            |           |           | 514       |         |         |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     
|                                      |                                                                        |                                                 | Net interest income                                    |                  |            |                                 |            |           | $         | 967,926  |        |         |      |         |           |            |            |            |           |           | $         | 867,108 |         |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                                 |            |           |           |          |        |         |      |         |           |            |            |            |           |           |           |         |         |     



|(1) |  | Annualized.                                                                                                                                                    
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(2) |  | Average investment securities were computed based on historical amortized
cost, 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 $46.8 million
and $39.4 million for the nine months ended September 30, 2003 and 2002,
respectively.

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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

The following table reflects the key components of the change in noninterest
income for the three and nine months ended
September 30, 2003, as compared to the same periods in 2002:

|                                 |                                      |                          |   |        |        |      |   |                |        |  |  |      |     |  
|-------------------------------- | ------------------------------------ | ------------------------ | - | ------ | ------ | ---- | - | -------------- | ------ |  |  | ---- | --- | -
|                                 |                                      |                          |   | 2003   |        | 2002 |   | % Change      
|                                 |                                      |                          |   |        |        |      |   |               
|                                 |                                      |                          |   |        |        |      |   | (in thousands) |        |  |  |     
|Three Months Ended September 30, |                                      |                          |   |        |        |      |   |                |        |  |  |     
|                                 | Service charges on deposit accounts  |                          | $ | 39,512 |        |      | $ | 39,183         |        |  |  | 0.8  | %  
|                                 | Trust and investment services income |                          |   | 9,461  |        |      |   | 9,883          |        |  |  | (4.3 | )  
|                                 | Other service charges and fees       |                          |   | 38,535 |        |      |   | 34,032         |        |  |  | 13.2 |    
|                                 | Securities gains, net                |                          |   | 555    |        |      |   | 282            |        |  |  | 96.8 |    
|                                 | Other                                |                          |   | 11,563 |        |      |   | 8,259          |        |  |  | 40.0 |    
|                                 |                                      |                          |   |        |        |      |   |                |        |  |  |     
|                                 |                                      | Total noninterest income |   | $      | 99,626 |      |   | $              | 91,639 |  |  |      | 8.7 | %
|                                 |                                      |                          |   |        |        |      |   |                |        |  |  |     

|                                |                                      |                          |   |         |         |      |   |                |         |  |  |       |      |  
|------------------------------- | ------------------------------------ | ------------------------ | - | ------- | ------- | ---- | - | -------------- | ------- |  |  | ----- | ---- | -
|                                |                                      |                          |   | 2003    |         | 2002 |   | % Change      
|                                |                                      |                          |   |         |         |      |   |               
|                                |                                      |                          |   |         |         |      |   | (in thousands) |         |  |  |      
|Nine Months Ended September 30, |                                      |                          |   |         |         |      |   |                |         |  |  |      
|                                | Service charges on deposit accounts  |                          | $ | 115,102 |         |      | $ | 101,718        |         |  |  | 13.2  | %   
|                                | Trust and investment services income |                          |   | 28,826  |         |      |   | 28,275         |         |  |  | 1.9   |     
|                                | Other service charges and fees       |                          |   | 113,380 |         |      |   | 89,442         |         |  |  | 26.8  |     
|                                | Securities gains, net                |                          |   | 3,913   |         |      |   | 966            |         |  |  | 305.1 |     
|                                | Other                                |                          |   | 33,813  |         |      |   | 22,291         |         |  |  | 51.7  |     
|                                |                                      |                          |   |         |         |      |   |                |         |  |  |      
|                                |                                      | Total noninterest income |   | $       | 295,034 |      |   | $              | 242,692 |  |  |       | 21.6 | %
|                                |                                      |                          |   |         |         |      |   |                |         |  |  |      

As the table above shows in detail, noninterest income increased by 8.7% and
21.6% for the three and nine months ended September 30, 2003, respectively,
compared to the same periods in 2002. These increases were driven by a number
of different causes. Service charges on deposit accounts for the quarter did
not increase materially, but increased $13.4 million or 13.2% in the nine
months ended September 30, 2003. This was due in large part to an increase in
average deposit balances of approximately 5.5% and 13.7% for the three and nine
months, respectively, compared to the same periods in the prior year. Part of
the year-to-date increase is attributable to the acquisition of UCB in March
2002.

Other service charges and fees increased 13.2% in the quarter and 26.8% in the
nine months year-to-date. The increase in other service charges and fees
compared to the same period last year is primarily due to higher income from
fees on commercial loans, higher lease servicing income
from the acquisition of Trinity Capital in November 2002, higher commission
from issuing letters of credit, higher broker servicing fees and increased
debit card usage. Other noninterest income increased 40.0% in the third
quarter and 51.7% in the nine-month period compared to the corresponding
periods in 2002. These increases are primarily gains from the sale of loans
and leases.

Approximately $0.6 million and $3.9 million in net gains on the sale of
investment securities were recognized in the three and nine months ended
September 30, 2003, respectively.




NONINTEREST EXPENSE

The following table reflects the key components of the change in noninterest
expense for the three and nine months ended
September 30, 2003 as compared to the same periods in 2002:

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##### Table of Contents



BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

|                                 |                                     |                           |   |                |         |      |   |          |         |  |  |       |     |  
|-------------------------------- | ----------------------------------- | ------------------------- | - | -------------- | ------- | ---- | - | -------- | ------- |  |  | ----- | --- | -
|                                 |                                     |                           |   | 2003           |         | 2002 |   | % Change
|                                 |                                     |                           |   |                |         |      |   |         
|                                 |                                     |                           |   | (in thousands)
|Three Months Ended September 30, |                                     |                           |   |                |         |      |   |          |         |  |  |      
|                                 | Salaries and wages                  |                           | $ | 86,269         |         |      | $ | 89,486   |         |  |  | (3.6  | )% 
|                                 | Employee benefits                   |                           |   | 34,091         |         |      |   | 28,340   |         |  |  | 20.3  |    
|                                 | Occupancy expense                   |                           |   | 22,239         |         |      |   | 24,008   |         |  |  | (7.4  | )  
|                                 | Outside services                    |                           |   | 18,002         |         |      |   | 17,472   |         |  |  | 3.0   |    
|                                 | Intangible amortization             |                           |   | 5,763          |         |      |   | 5,763    |         |  |  |      |    
|                                 | Equipment expense                   |                           |   | 11,563         |         |      |   | 14,043   |         |  |  | (17.7 | )  
|                                 | Stationery and supplies             |                           |   | 5,962          |         |      |   | 6,990    |         |  |  | (14.7 | )  
|                                 | Advertising and promotion           |                           |   | 5,794          |         |      |   | 12,301   |         |  |  | (52.9 | )  
|                                 | Restructuring and integration costs |                           |   |               |         |      |   | 6,213    |         |  |  |      |    
|                                 | Other                               |                           |   | 33,280         |         |      |   | 19,748   |         |  |  | 68.5  |    
|                                 |                                     |                           |   |                |         |      |   |          |         |  |  |      
|                                 |                                     | Total noninterest expense |   | $              | 222,963 |      |   | $        | 224,364 |  |  |       | 0.6 | %
|                                 |                                     |                           |   |                |         |      |   |          |         |  |  |      

|                                |                                     |                           |   |                |         |      |   |          |         |  |  |       |      |  
|------------------------------- | ----------------------------------- | ------------------------- | - | -------------- | ------- | ---- | - | -------- | ------- |  |  | ----- | ---- | -
|                                |                                     |                           |   | 2003           |         | 2002 |   | % Change
|                                |                                     |                           |   |                |         |      |   |         
|                                |                                     |                           |   | (in thousands)
|Nine Months Ended September 30, |                                     |                           |   |                |         |      |   |          |         |  |  |      
|                                | Salaries and wages                  |                           | $ | 252,908        |         |      | $ | 236,043  |         |  |  | 7.1   | %   
|                                | Employee benefits                   |                           |   | 111,127        |         |      |   | 87,497   |         |  |  | 27.0  |     
|                                | Occupancy expense                   |                           |   | 67,153         |         |      |   | 63,117   |         |  |  | 6.4   |     
|                                | Outside services                    |                           |   | 53,843         |         |      |   | 48,532   |         |  |  | 10.9  |     
|                                | Intangible amortization             |                           |   | 17,290         |         |      |   | 14,283   |         |  |  | 21.1  |     
|                                | Equipment expense                   |                           |   | 35,156         |         |      |   | 36,252   |         |  |  | (3.0  | )   
|                                | Stationery and supplies             |                           |   | 19,396         |         |      |   | 20,017   |         |  |  | (3.1  | )   
|                                | Advertising and promotion           |                           |   | 19,451         |         |      |   | 24,978   |         |  |  | (22.1 | )   
|                                | Restructuring and integration costs |                           |   |               |         |      |   | 14,966   |         |  |  |      |     
|                                | Other                               |                           |   | 97,088         |         |      |   | 66,597   |         |  |  | 45.8  |     
|                                |                                     |                           |   |                |         |      |   |          |         |  |  |      
|                                |                                     | Total noninterest expense |   | $              | 673,412 |      |   | $        | 612,282 |  |  |       | 10.0 | %
|                                |                                     |                           |   |                |         |      |   |          |         |  |  |      

As the table above shows in detail,
the change in total noninterest expense from the previous year was
not material in the third quarter. The increase in employee benefits
of $5.8 million, or 20.3% in the three months ended September 30,
2003 compared to the same period in the previous year is primarily
attributable to higher workers compensation insurance, higher group
healthcare insurance and increased retirement plan expense. Occupancy
expenses decreased $1.8 million or 7.4% in the three months ended
September 30, 2003 compared to the same period in the prior year due to the consolidation of
branches after the UCB acquisition. Advertising and
promotion expenses decreased by $6.5 million in the period due to
higher expenses in the third quarter of 2002 to promote brand
recognition after the acquisition of UCB. The decreases in the other
categories of noninterest expense in the third quarter from the
previous year, such as salaries and wages, equipment expense, stationery and supplies are
primarily from efficiencies of operations from our restructuring
efforts in 2002. The increase of $13.5 million in the other expense
category is primarily attributable to higher depreciation expense on
software, higher general liability and property insurance, increased
charitable contributions and increases in certain administrative
costs.

In the nine months ended September 30,
2003, noninterest expense increased $61.1 million, or 10.0% compared
to the same period in 2002. The increase in salaries and wages of
$16.9 million, or 7.1% in the nine month period ended
September 30, 2003 compared to the prior year is attributable to
the acquisition of UCB. The increase of $23.6 million in employee
benefits is primarily attributable to higher workers
compensation insurance, higher group healthcare insurance and
increased retirement
plan expenses. Intangible amortization increased 21.1% in the nine
months ended September 30, 2003 from the prior year due to the
acquisition of UCB and the additional intangibles acquired.
Advertising and promotion expenses were much higher in the nine-month
period in the previous year, decreasing $5.5 million, or 22.1% in the
current year. This decrease was the result of higher advertising and
promotion expenses in 2002 to promote brand recognition and maintain
customer base after the acquisition of UCB. Increases in other
expenses include certain fees and software depreciation that we
incurred this year that were not incurred in 2002 as well as a
leveraged lease restructuring charge from the second quarter.

As a result of the consolidation of
operations subsequent to the acquisition of UCB, we expect to achieve
cost savings of approximately $75 million per year beginning in
2003. These anticipated cost savings primarily involve compensation
and occupancy-related expenses.

OPERATING SEGMENT RESULTS




Bank of the West

Regional Bankingsegments net
income remained nearly flat in the three months
ended September 30, 2003 from the same period in the prior year at $35.2
million. Net interest income decreased $7.7 million or 5.7% in the third
quarter compared to the same period in the

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BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

prior year. Noninterest income
increased $2.0 million or 4.9% and noninterest expense decreased $1.5 million
or 1.4% this quarter from the quarter ended September 30, 2002. The provision
for credit losses decreased $2.5 million or 36.8%.

Net interest income decreased in the third quarter compared to the prior year
due to interest rate compression. While average deposits have increased
slightly, interest margins have shrunk. Demand deposit accounts margins have
also declined. Noninterest income increased due to debit card interchange
revenue associated with increased volume usage and an additional MasterCard®
product. Noninterest expense decreased in the three month period compared to
the prior year due to lower salary and wage expenses this quarter. This
decrease in expenses was coupled with savings from the consolidation of branch
facilities subsequent to the acquisition of UCB and partially offset by higher employee benefit costs.

For the nine months ended September 30, 2003 net income increased $1.1 million
or 1.2% compare to the same period last year. Net interest income increased
$14.3 million or 4.0% in the year to date period. Noninterest income increased
$17.5 million or 16.6% and noninterest expense increased $32.1 million or 11.0%
in the nine months ended September 30, 2003 compared to the prior year. The
provision for credit losses increased $0.9 million or 8.0% in
the nine months ended September 30, 2003 compared to the same
period in the prior year.

Net interest income increased in the nine month period ended September 30, 2003
due to the acquisition of UCB branches partially offset by the interest rate
compression. Noninterest income has increased due to growth in deposit
balances and the debit card interchange revenue from new VISA® and MasterCard®
accounts. Noninterest expense increased in the first
three quarters of 2003 compared to the prior year due to the acquisition of UCB
and increases in employee benefit expenses for group insurance.

Average deposit balances in the nine months ended September 30, 2003 grew
approximately 12.3% over last year.

Commercial Banking
segments net income increased $6.2 million or 20.1% in the three months
ended September 30, 2003 from $30.8 million in the three months ended September
30, 2002 to $37.0 million this year. Net interest income increased $5.0
million or 6.8% in the third quarter compared to the same period in the prior
year. Noninterest income increased $4.4 million or 51.2% and noninterest
expense increased $0.4 million or 1.4% this quarter from the quarter ended
September 30, 2002.

Net interest income increased in the three months ended September 30, 2003
despite a declining interest rate environment that eroded margins on deposits.
Margins on loans and leases increased 26 basis point, while average balances grew by
4.5%. Margins on deposits dropped 116 basis points due to lower transfer
pricing rates, while average balances grew 20.2%. The increase in loan and lease
margins reflects a change in portfolio mix between loans and leases, with
higher yielding leases acquired through the acquisition of Trinity Capital and
UCB acquisition replacing lower yielding loans. The $4.4 million increase in noninterest income was due to higher nonyield
loan fees, derivative sales fees, and foreign
exchange fees. The provision for credit losses has increased $0.3 million
because of the increase in the volume of loans we administer.

Commercial Banking segments net income increased $34.9 million or 44.9% in the
nine months ended September 30, 2003 from $77.7 million in the nine months
ended September 30, 2002 to $112.6 million this year. Net interest income
increased $52.0 million or 28.5%. Noninterest income increased $18.2 million
or 90.1%. Noninterest expense increased $21.7 million or 32.7%. Provision for
credit losses decreased $6.9 million.

Commercial Banking achieved growth in loans, deposits, and net income due to
strong performance in SBA, Church Lending, Healthcare, and Cash Management, and
the acquisitions of UCB in April 2002 and Trinity Capital in November 2002.
Interest margins on loans and leases increased 24 basis points, as higher
yielding leases replaced lower yielding loans in the portfolio. Deposit
margins decreased 89 basis points due to a declining interest rate environment.
Noninterest income growth was driven by the UCB and Trinity acquisitions,
nonyield related loan fees and lease servicing, as well as aggressive efforts
to sell cash management, derivatives, and foreign exchange services. While the
Trinity Capital acquisition increased full-time equivalents (FTE) by
86, FTE in legacy Bank of the West and UCB
businesses has declined by 73 from September 2002 to September 2003.
Commercial Banking continues to pursue a strategy of leveraging efficiencies
gained through the expanded resources resulting from the UCB and Trinity
Capital acquisitions, while focusing on niche markets where there is a
competitive advantage, such as equipment leasing, SBA loans and
Church Lending.

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BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

Acquisitions of UCB in April 2002 and Trinity Capital in November 2002 resulted
in increases of 22.7% in average loans and 61.0% in average deposits in the
nine months ended September 30, 2003. The Commercial Banking Segment continues
to pursue a strategy of leveraging efficiencies gained through the expanded
resources resulting from the UCB acquisition, while focusing on niche markets
where there is competitive advantage, such as equipment leasing, SBA loans and
religious lending.

Consumer Finance
segments net income for the three months ended September 30, 2003 was
$16.5 million compared to $14.1 million a year ago. Net interest income in the
third quarter 2003 was $53.0 million, compared with $47.7 million for the same
period 2002, an increase of 11.1%. Noninterest income increased $0.1 million
for the quarter compared to the prior year. Noninterest expense increased from
$13.5 million in the three months ended September 30, 2002 to $15.0 million
this year, an increase of 11.1%. Our provision for credit allowances also
increased 5.4% in the third quarter of this year compared to the third quarter
of 2002.

The Consumer Finance Segment remains very competitively priced in the indirect
lending market. Noninterest income in the three months ended September 30,
2003 was $2.9 million, compared with $2.8 million for the same period 2002.
This increase was primarily due to an increase in loan
servicing related fees. Noninterest expense for the third quarter 2003
increased by 11.1% over the same period in 2002. This increase was primarily
due to an increase in the cost of employee salaries and benefits. Other
expense categories experienced a decrease due to efficiency gains.

Net income for the nine months ended September 30, 2003 was $44.3 million
compared to $36.5 million in the same period a year ago. Net interest income
for the nine months ended September 30, 2003 was $153.4 million, compared to
$132.9 million for the same period in 2002, an increase of 15.4%. Noninterest
income increased 11.0% and noninterest expense increased 9.8% in the first
three-quarters of 2003 compared to the corresponding period of 2002. The
provision for credit losses increased $5.5 million from $37.7 million in the
first three quarters of 2002 to $43.2 million in 2003.

Noninterest income for the nine months ended September 30, 2003 was $9.1
million, compared with $8.2 million for the same period in 2002. This increase
was primarily due to gains on sales of loans through our Essex subsidiary,
increases in installment non-yield related loan fees, and other retail service
charges. Noninterest expense for the nine months ended September 30, 2003
increased by $4.1 million from the same period 2002. This increase was
primarily due to greater staff and occupancy requirements associated with
growth and the UCB acquisition. Additionally, increases in the cost of
employee benefits and an increase in the use of outside services related to
higher production volumes contributed to the higher expenses in 2003.

Average assets for the nine months
ended September 30, 2003 were $7.4 billion,
compared to $6.5 billion, an increase of $0.9 billion, or 13.5% in the nine
months ended September 30, 2002. This increase is due to both the UCB
acquisition that took place in 2002 and increased indirect loan production.

First Hawaiian Bank

Retail Banking
segments net income for the third quarter ended September 30, 2003 increased
$3.6 million, or 17.1% compared to the same period in 2002. Net interest
income for the third quarter increased by $4.1 million, or 6.4% compared to the
prior year. The increase was primarily due to higher commercial loan and
mortgage loan fees. Noninterest income for the three months ended
September 30, 2003 increased by $2.2 million, or 14.0% compared to prior year.
The increase was primarily due to higher account
analysis fees. Noninterest expense for the third quarter increased by $2.3
million, or 5.3% compared to prior year. The increase was primarily due to
higher retirement plan expense. Provision for credit losses for the third
quarter decreased by $0.8 million, or 38.1% compared to prior year.

Net income for the nine months ended September 30, 2003 increased $4.2 million,
or 6.4% compared to the same periods in 2002. Net interest income for nine
months ended September 30, 2003 increased $2.9 million, or 1.5% compared to
prior year. The increase was primarily due to higher commercial loan and
mortgage loan fees. Noninterest income for the nine months ended September 30,
2003 increased by $4.9 million, or 10.5% compared to prior year. The increase
was primarily due to higher account analysis fees. Noninterest expense for the
nine months ended September 30, 2003 increased $4.2 million or 3.2% compared to
prior year. The increase was primarily due to higher retirement plan expense.
Provision for credit losses for the year-to-date period ended September 30,
2003 decreased by $1.4 million, or 22.6% compared to prior year.

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BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

Consumer
segments net income for the third quarter ended September 30, 2003 increased
$0.7 million, or 8.6% compared to prior year. Net interest income for the
third quarter increased by $4.5 million, or 25.0% compared to prior year. The
increase was primarily due to higher loan volume and higher interchange and
mortgage loan fees. Noninterest income for the third quarter of 2003 decreased
$2.4 million, or 30.8%, compared to prior year. The decrease was primarily due
to large gains on sales of mortgage loans in August 2002. Noninterest expense
for the third quarter increased $1.3 million, or 12.5% compared to prior year.
The increase was primarily due to higher incentive compensation, temporary help and higher retirement plan expense. Provision for credit losses in the
third quarter of 2003 compared to the same period in the prior year decreased
$0.1 million, or 4%.

Net income for the nine months ended September 30, 2003 increased $6.9 million,
or 32.2% compared to prior year. Net interest income for the nine months ended
September 30, 2003 increased by $10.7 million, or 20.2% compared to prior year.
Noninterest income for the nine months ended September 30, 2003 was up $3.5 million, or 18.1%, compared to prior year. The increase
was primarily due to higher merchant service income and higher gains on sales
of loans. Noninterest expense for the nine months ended September 30, 2003
increased $3.6 million, or 11.7% compared to prior year. The increases were
primarily due to higher incentive compensation, temporary help and
higher retirement plan expense. There was no change in the provision for
credit losses in the first nine months of 2003, compared to prior year.

Commercial Bankingsegments net income for the third quarter ended September 30, 2003 increased
$2.2 million, or 48.9%, compared to the same periods in 2002. Net interest
income for the third quarter increased $0.9 million, or 12.9% compared to the
same periods in the prior year. Noninterest income for the three months ended September 30, 2003 increased $1.4
million, or 82.4% over the same periods in the prior year. The large increase
was primarily due to the gain on sale of low-income housing projects and
equipment in July 2003. Noninterest expense for the third quarter was up $0.1
million, or 5.3% compared to the same periods in the prior year. Provision for
credit losses for the third quarter decreased by $0.2 million, or 66.7%
compared to prior year.

Net income for the nine months ended September 30, 2003 increased $3.5 million,
or 26.5%, compared to prior year. Net interest income for the nine months
ended September 30, 2003 increased $2.8 million, or 13.7%, compared to the same
periods in the prior year. Noninterest income for the nine months ended September 30, 2003 increased $1.4
million, or 28.6% over the same periods in the prior year. The large increase
was primarily due to the gain on sale of low-income housing projects and
equipment in July 2003. Noninterest expense for the nine months ended
September 30, 2003 was up $0.9 million, or 16.4% compared to the same periods
in the prior year. Provision for credit losses for the nine months ended
September 30, 2003 decreased by $0.5 million, or 83.3% compared to prior year.

Financial Managementsegments net income was $1.1 million for the third quarter of 2003, compared
to $0.9 million for the same period in 2002, an increase of 22.2%. Net
interest income for the third quarter of 2003 decreased $0.1 million, compared
to the same period in the prior year. Noninterest income was up $0.7 million
or 9.7%, for the three months ended September 30, 2003, compared to the same
period in the prior year. Noninterest expense for the third quarter was up
$0.2 million, or 3.4% compared to prior year. The increases were primarily due
to higher salaries and retirement plan expense.

Net income for the nine months ended September 30, 2003 was $2.2 million, a
decrease of 24.1%, from $2.9 million for the same period in 2002. There was no
change in net interest income for the nine months ended September 30, 2003,
compared to prior year. Noninterest income was up $0.4 million, or 1.8%, for
the nine months ended September 30, 2003, compared to the same period in the
prior year. Noninterest expense for the nine months ended September 30, 2003
was up $1.5 million, or 8.5% compared to prior year. The increases were
primarily due to higher salaries and retirement plan expense.

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BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

INVESTMENT SECURITIES




Available-for-Sale

The fair value of available-for-sale securities at September 30, 2003 increased
by approximately $1.7 billion, or 45.9%, compared to the value at September 30,
2002 and increased by approximately $1.5 billion, or 37.3%, compared to
December 31, 2002. While we still continue to originate and purchase loans, we
have increased our purchases of investment securities as the slow economy has
not been conducive to significant loan originations.

The following table provides the cost and fair value for the major components
of securities available for sale carried at fair value.

|                                                     |                                             |                                  |           |           |                    |           |                   |           |                    |           |           |           |           |           |           |           |           |           |           |           |           |           |           |           |           |           | 
|---------------------------------------------------- | ------------------------------------------- | -------------------------------- | --------- | --------- | ------------------ | --------- | ----------------- | --------- | ------------------ | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | 
|                                                     |                                             |                                  |           |           | September 30, 2003 |           | December 31, 2002 |           | September 30, 2002
|                                                     |                                             |                                  |           |           |                    |           |                   |           |                   
|                                                     |                                             |                                  |           |           |                    |           |                   |           | Estimated          |           |           |           |           |           | Estimated |           |           |           |           |           | Estimated
|                                                     |                                             |                                  |           |           |                    |           |                   |           | fair               |           |           |           |           |           | fair      |           |           |           |           |           | fair     
|                                                     |                                             |                                  |           |           | Cost               |           | value             |           | Cost               |           | value     |           | Cost      |           | value    
|                                                     |                                             |                                  |           |           |                    |           |                   |           |                    |           |           |           |           |           |          
|                                                     |                                             |                                  |           |           | (in thousands)    
|Securities of U.S. Treasury and
federal agencies:    |                                             | $                                | 1,463,688 |           |                    | $         | 1,479,594         |           |                    | $         | 1,312,430 |           |           | $         | 1,338,310 |           |           | $         | 1,096,605 |           |           | $         | 1,119,443 |          
|Securities of U.S. states and
political subdivisions |                                             |                                  | 15,601    |           |                    |           | 15,824            |           |                    |           | 14,920    |           |           |           | 15,025    |           |           |           | 15,008    |           |           |           | 15,117    |          
|Mortgage-backed securities:                          |                                             |                                  |           |           |                    |           |                   |           |                    |           |           |           |           |           |           |           |           |           |           |           |           |           |           |          
|                                                     | Federal
and federally sponsored agencies    |                                  |           | 2,175,235 |                    |           |                   | 2,179,420 |                    |           |           | 1,366,656 |           |           |           | 1,403,374 |           |           |           | 1,366,803 |           |           |           | 1,402,292 |          
|                                                     | Private collateralized mortgage obligations |                                  |           | 880,570   |                    |           |                   | 875,807   |                    |           |           | 447,176   |           |           |           | 453,331   |           |           |           | 530,223   |           |           |           | 539,719   |          
|                                                     |                                             |                                  |           |           |                    |           |                   |           |                    |           |           |           |           |           |           |           |           |           |           |           |           |           |           |          
|                                                     |                                             | Total mortgage-backed securities |           |           | 3,055,805          |           |                   |           | 3,055,227          |           |           |           | 1,813,832 |           |           |           | 1,856,705 |           |           |           | 1,897,026 |           |           |           | 1,942,011 |          
|                                                     |                                             |                                  |           |           |                    |           |                   |           |                    |           |           |           |           |           |           |           |           |           |           |           |           |           |           |          
|                                                     | Total debt securities                       |                                  |           | 4,535,094 |                    |           |                   | 4,550,645 |                    |           |           | 3,141,182 |           |           |           | 3,210,040 |           |           |           | 3,008,639 |           |           |           | 3,076,571 |          
|Equity securities                                    |                                             |                                  | 852,533   |           |                    |           | 861,724           |           |                    |           | 719,115   |           |           |           | 730,729   |           |           |           | 622,756   |           |           |           | 631,902   |          
|                                                     |                                             |                                  |           |           |                    |           |                   |           |                    |           |           |           |           |           |           |           |           |           |           |           |           |           |           |          
|                                                     |                                             |                                  | Total     |           | $                  | 5,387,627 |                   |           | $                  | 5,412,369 |           |           | $         | 3,860,297 |           |           | $         | 3,940,769 |           |           | $         | 3,631,395 |           |           | $         | 3,708,473 | 
|                                                     |                                             |                                  |           |           |                    |           |                   |           |                    |           |           |           |           |           |           |           |           |           |           |           |           |           |           |          

The following table presents the amortized cost, unrealized gains and losses
and fair values of available-for-sale investment securities as of the dates
indicated:

|                  |  |                |           |              |  |               |           |   |  |   |           |  
|----------------- |  | -------------- | --------- | ------------ |  | ------------- | --------- | - |  | - | --------- | -
|                  |  | September 30,  |           | December 31, |  | September 30,
|                  |  | 2003           |           | 2002         |  | 2002         
|                  |  |                |           |              |  |              
|                  |  | (in thousands)
|Amortized cost    |  | $              | 5,387,627 |              |  | $             | 3,860,297 |   |  | $ | 3,631,395 |  
|Unrealized gains  |  |                | 55,922    |              |  |               | 82,838    |   |  |   | 79,265    |  
|Unrealized losses |  |                | (31,180   | )            |  |               | (2,366    | ) |  |   | (2,187    | )
|                  |  |                |           |              |  |               |           |   |  |   |           |  
|Fair value        |  | $              | 5,412,369 |              |  | $             | 3,940,769 |   |  | $ | 3,708,473 |  
|                  |  |                |           |              |  |               |           |   |  |   |           |  

Gains and losses realized on the sales of available-for-sale investment
securities are determined using the specific identification method. Gross
realized gains and losses on available-for-sale investment securities for the
three and nine months ended September 30, 2003 and 2002 were as follows:

|                      |  |                    |     |                   |  |      |      |      |  |   |       |  |  |   |       |  
|--------------------- |  | ------------------ | --- | ----------------- |  | ---- | ---- | ---- |  | - | ----- |  |  | - | ----- | -
|                      |  | Three months Ended |     | Nine months Ended
|                      |  | September 30,      |     | September 30,    
|                      |  |                    |     |                  
|                      |  | 2003               |     | 2002              |  | 2003 |      | 2002
|                      |  |                    |     |                   |  |      |      |     
|                      |  | (in thousands)    
|Realized gains        |  | $                  | 555 |                   |  | $    | 402  |      |  | $ | 3,913 |  |  | $ | 1,124 |  
|Realized losses       |  |                    |    |                   |  |      | (120 | )    |  |   |      |  |  |   | (158  | )
|                      |  |                    |     |                   |  |      |      |      |  |   |       |  |  |   |       |  
|Securities gains, net |  | $                  | 555 |                   |  | $    | 282  |      |  | $ | 3,913 |  |  | $ | 966   |  
|                      |  |                    |     |                   |  |      |      |      |  |   |       |  |  |   |       |  

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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

The following table sets forth the loan and lease portfolio by major categories
and loan and lease mix at September 30, 2003, December 31, 2002 and September 30, 2002:

|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |      |       |  
|-------------------------------------- | ------------ | ----------------------------------- | --------- | ---------------------- | ---------- | ----------------- | ---- | ------------------ | ----- | - | --------- | --------- | ---------- | - | ---- | ---- | ----- | - | --------- | --------- | ---------- |  | ---- | ---- | ----- | -
|                                       |              |                                     |           | September 30, 2003     |            | December 31, 2002 |      | September 30, 2002
|                                       |              |                                     |           |                        |            |                   |      |                   
|                                       |              |                                     |           | Amount                 |            | %                 |      | Amount             |       | % |           | Amount    |            | %
|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |  
|                                       |              |                                     |           | (dollars in thousands)
|Commercial, financial and agricultural |              | $                                   | 4,446,197 |                        |            |                   | 17.6 | %                  |       | $ | 4,802,581 |           |            |   | 19.9 | %    |       | $ | 4,764,805 |           |            |  | 19.8 | %   
|Real estate:                           |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|                                       | Commercial   |                                     |           | 5,023,284              |            |                   |      | 19.9               |       |   |           | 4,806,220 |            |   |      | 19.9 |       |   |           | 4,785,058 |            |  |      | 19.9 |      
|                                       | Construction |                                     |           | 919,115                |            |                   |      | 3.6                |       |   |           | 971,861   |            |   |      | 4.0  |       |   |           | 1,042,011 |            |  |      | 4.3  |      
|                                       | Residential: |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |      |      
|                                       |              | Insured, guaranteed or conventional |           |                        | 4,326,332  |                   |      |                    | 17.1  |   |           |           | 4,022,810  |   |      |      | 16.7  |   |           |           | 4,241,750  |  |      |      | 17.6  |  
|                                       |              | Home equity credit lines            |           |                        | 705,736    |                   |      |                    | 2.8   |   |           |           | 726,535    |   |      |      | 3.0   |   |           |           | 718,143    |  |      |      | 3.0   |  
|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total real estate loans             |           |                        | 10,974,467 |                   |      |                    | 43.4  |   |           |           | 10,527,426 |   |      |      | 43.6  |   |           |           | 10,786,962 |  |      |      | 44.8  |  
|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|Consumer                               |              |                                     | 7,124,576 |                        |            |                   | 28.2 |                    |       |   | 6,021,510 |           |            |   | 25.0 |      |       |   | 5,858,098 |           |            |  | 24.3 |     
|Lease financing                        |              |                                     | 2,365,395 |                        |            |                   | 9.4  |                    |       |   | 2,398,681 |           |            |   | 9.9  |      |       |   | 2,272,232 |           |            |  | 9.5  |     
|Foreign                                |              |                                     | 353,902   |                        |            |                   | 1.4  |                    |       |   | 395,889   |           |            |   | 1.6  |      |       |   | 389,592   |           |            |  | 1.6  |     
|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total loans and leases              |           |                        | 25,264,537 |                   |      |                    | 100.0 | % |           |           | 24,146,087 |   |      |      | 100.0 | % |           |           | 24,071,689 |  |      |      | 100.0 | %
|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|Less allowance for credit losses       |              |                                     | 390,194   |                        |            |                   |      |                    |       |   | 384,081   |           |            |   |      |      |       |   | 385,190   |           |            |  |      |     
|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total net loans and leases          |           | $                      | 24,874,343 |                   |      |                    |       |   |           | $         | 23,762,006 |   |      |      |       |   |           | $         | 23,686,499 |  |      |      |       |  
|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|Total loans and leases to:             |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total assets                        |           |                        |            |                   |      |                    | 67.5  | % |           |           |            |   |      |      | 69.5  | % |           |           |            |  |      |      | 70.3  | %
|                                       |              | Total earning assets                |           |                        |            |                   |      |                    | 80.1  | % |           |           |            |   |      |      | 84.3  | % |           |           |            |  |      |      | 84.4  | %
|                                       |              | Total deposits                      |           |                        |            |                   |      |                    | 97.5  | % |           |           |            |   |      |      | 98.3  | % |           |           |            |  |      |      | 98.8  | %

The loan and lease portfolio is the largest component of earning assets and
accounts for the greatest portion of total interest income. There was
a $1.2 billion, or 5.0%
increase in total loans and leases from September 30, 2002 and a
$1.1 billion, or 4.6% increase
compared to December 31, 2002.

When comparing the current period to December 31, 2002 there was an increase of
$1.1 billion, or 18.3% in consumer loans due to continued
strength in the consumer market. Consumer loans consist primarily of
direct and indirect automobile, recreational vehicle, marine, credit
card and unsecured financing. This increase was partially offset by a
decrease of $356.4 million or 7.4%, in commercial lending
resulting from run off. Total real estate loans increased primarily
due to the origination of commercial real estate
loans and the purchase of approximately $935 million in residential loans which was substantially offset by run off due to refinancing of residential real estate loans with other institutions.

When comparing the current period to
September 30, 2002 consumer loans increased by
$1.3 billion, or 21.6%, due to the continued strength in the
consumer market. This increase was partially offset by a decrease of
$318.6 million, or 6.7%, in commercial lending.

Loan concentrations are considered to exist when there are amounts loaned to
multiple borrowers engaged in similar activities, which would cause them to be
similarly impacted by economic or other conditions. At September 30, 2003, we
did not have a concentration of loans greater than 10% of total loans which is
not otherwise disclosed as a category of loans as shown in the table above.

Off-balance-sheet commitments were as follows at September 30, for the years
indicated:

|                                                 |                              |  |                          |           |      |  |   |           | 
|------------------------------------------------ | ---------------------------- |  | ------------------------ | --------- | ---- |  | - | --------- | 
|                                                 |                              |  | Notional/Contract Amount
|                                                 |                              |  |                         
|                                                 |                              |  | 2003                     |           | 2002
|                                                 |                              |  |                          |           |     
|                                                 |                              |  | (in thousands)          
|Contractual amounts which represent credit risk: |                              |  |                          |           |      |  |   |          
|                                                 | Commitments to extend credit |  | $                        | 7,741,817 |      |  | $ | 7,893,668 | 
|                                                 | Standby letters of credit    |  |                          | 792,910   |      |  |   | 821,844   | 
|                                                 | Commercial letters of credit |  |                          | 69,751    |      |  |   | 77,047    | 

31



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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

Nonperforming assets and restructured loans at September 30, 2003, December 31,
2002 and September 30, 2002 were as follows:

|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |        |         |        |         |  
|----------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------- | -------------------------------------- | ------------ | -------------------------------------------- | ------ | ---------------------- | ------- | ------------ | ------- | ------------- | ------- | ------ | ------- | ------ | ------- | -
|                                                                                                                              |                                                           |                                        |              |                                              |        | September 30,          |         | December 31, |         | September 30,
|                                                                                                                              |                                                           |                                        |              |                                              |        | 2003                   |         | 2002         |         | 2002         
|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |              
|                                                                                                                              |                                                           |                                        |              |                                              |        | (dollars in thousands)
|Nonperforming Assets:                                                                                                         |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              | Nonaccrual:                                               |                                        |              |                                              |        |                        |         |              |         |               |         |        |        
|                                                                                                                              |                                                           | Commercial, financial and agricultural |              | $                                            | 89,698 |                        |         | $            | 145,920 |               |         | $      | 177,988 |       
|                                                                                                                              |                                                           | Real estate:                           |              |                                              |        |                        |         |              |         |               |         |        |         |       
|                                                                                                                              |                                                           |                                        | Commercial   |                                              |        | 40,694                 |         |              |         | 48,071        |         |        |         | 46,720 |        
|                                                                                                                              |                                                           |                                        | Residential: |                                              |        |                        |         |              |         |               |         |        |         |        |        
|                                                                                                                              |                                                           |                                        |              | Insured, guaranteed, or conventional         |        |                        | 8,132   |              |         |               | 5,460   |        |         |        | 8,223   |  
|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              |                                                           |                                        |              | Total real estate loans                      |        |                        | 48,826  |              |         |               | 53,531  |        |         |        | 54,943  |  
|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              |                                                           | Consumer                               |              |                                              | 2,083  |                        |         |              | 4,769   |               |         |        | 3,175   |       
|                                                                                                                              |                                                           | Lease financing                        |              |                                              | 12,047 |                        |         |              | 11,532  |               |         |        | 8,937   |       
|                                                                                                                              |                                                           | Foreign                                |              |                                              | 7,210  |                        |         |              | 10,088  |               |         |        | 9,069   |       
|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              |                                                           |                                        |              | Total nonaccrual loans and leases            |        |                        | 159,864 |              |         |               | 225,840 |        |         |        | 254,112 |  
|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              | Other real estate owned and repossessed personal
property |                                        |              | 19,237                                       |        |                        |         | 19,613       |         |               |         | 15,523 |        
|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              |                                                           |                                        |              | Total nonperforming assets                   |        | $                      | 179,101 |              |         | $             | 245,453 |        |         | $      | 269,635 |  
|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |        |         |       
|Past due loans and leases(1):                                                                                                 |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              | Commercial, financial and agricultural                    |                                        | $            | 15,792                                       |        |                        | $       | 9,005        |         |               | $       | 9,591  |        
|                                                                                                                              | Real estate:                                              |                                        |              |                                              |        |                        |         |              |         |               |         |        |        
|                                                                                                                              |                                                           |                                        | Commercial   |                                              |        | 6,226                  |         |              |         | 2,952         |         |        |         | 8,142  |        
|                                                                                                                              |                                                           |                                        | Residential: |                                              |        |                        |         |              |         |               |         |        |         |        |        
|                                                                                                                              |                                                           |                                        |              | Insured, guaranteed, or conventional         |        |                        | 1,499   |              |         |               | 5,082   |        |         |        | 3,263   |  
|                                                                                                                              |                                                           |                                        |              | Home equity credit lines                     |        |                        | 334     |              |         |               | 661     |        |         |        | 685     |  
|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              |                                                           |                                        |              | Total real estate loans                      |        |                        | 8,059   |              |         |               | 8,695   |        |         |        | 12,090  |  
|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              | Consumer                                                  |                                        |              | 2,536                                        |        |                        |         | 1,984        |         |               |         | 2,214  |        
|                                                                                                                              | Lease financing                                           |                                        |              | 72                                           |        |                        |         | 232          |         |               |         | 113    |        
|                                                                                                                              | Foreign                                                   |                                        |              | 213                                          |        |                        |         | 1,181        |         |               |         | 3,176  |        
|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              |                                                           |                                        |              | Total past due loans and leases              |        | $                      | 26,672  |              |         | $             | 21,097  |        |         | $      | 27,184  |  
|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |        |         |       
|Accruing Restructured Loans:                                                                                                  |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              | Commercial, financial and agricultural                    |                                        | $            | 33                                           |        |                        | $       | 69           |         |               | $       | 74     |        
|                                                                                                                              | Real estate:                                              |                                        |              |                                              |        |                        |         |              |         |               |         |        |        
|                                                                                                                              |                                                           |                                        | Commercial   |                                              |        | 1,637                  |         |              |         | 4,570         |         |        |         | 4,615  |        
|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              |                                                           |                                        |              | Total real estate loans                      |        |                        | 1,637   |              |         |               | 4,570   |        |         |        | 4,615   |  
|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              |                                                           |                                        |              | Total accruing restructured loans and leases |        | $                      | 1,670   |              |         | $             | 4,639   |        |         | $      | 4,689   |  
|                                                                                                                              |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |        |         |       
|Nonperforming assets to total loans and leases and other real estate owned
and repossessed personal property (end of period): |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              |                                                           |                                        |              | Excluding past due loans and leases          |        |                        | 0.71    | %            |         |               | 1.02    | %      |         |        | 1.12    | %
|                                                                                                                              |                                                           |                                        |              | Including past due loans and leases          |        |                        | 0.81    | %            |         |               | 1.10    | %      |         |        | 1.23    | %
|Nonperforming assets to total assets (end of period):                                                                         |                                                           |                                        |              |                                              |        |                        |         |              |         |               |         |       
|                                                                                                                              |                                                           |                                        |              | Excluding past due loans and leases          |        |                        | 0.48    | %            |         |               | 0.71    | %      |         |        | 0.79    | %
|                                                                                                                              |                                                           |                                        |              | Including past due loans and leases          |        |                        | 0.55    | %            |         |               | 0.77    | %      |         |        | 0.87    | %



|(1) |  | Represents loans and leases which are past due 90 days or more as to the
principal and/or interest, are still accruing interest and are adequately
collateralized and in the process of collection.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

32



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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 at September 30, 2003 were $179.1 million, or 0.71%, of
total loans and leases and other real estate owned (OREO), and repossessed
personal property, compared to 1.02% at December 31, 2002 and 1.12% at
September 30, 2002. Nonperforming assets at September 30, 2003 were 0.48% of
total assets, compared to 0.71% at December 31, 2002 and 0.79% at September 30,
2002.

Nonperforming assets at September 30, 2003 decreased by $66.4 million, or
27.0%, from December 31, 2002 and decreased by $90.5 million, or 33.6%, from
September 30, 2002. Nonaccrual loans for commercial, financial
and agricultural lending decreased $56.2 million or 38.5% from
December 31, 2002 and decreased $88.3 million or 49.6% from
the same period last year. Total real estate loans have decreased
$4.7 million or 8.8% since December 31, 2002 and
$6.1 million or 11.1% since September 30, 2002. Within the nonaccrual
real estate loans category, decreases in commercial real estate loans
of $7.4 million or 15.3% from December 31, 2002 were
partially offset by increases in nonaccrual residential real estate
loans of $2.7 million or 48.9%. Total nonaccrual loans and leases
decreased $66.0 million, or 29.2% since December 31, 2002
and $94.2 million, or
37.1% since September 30, 2002. These decreases resulted from
the resolution of problem relationships.

Foreign nonperforming loans decreased at September 30, 2003 by $2.9 million,
or 28.5% from December 31, 2002 and by $1.9 million, or 20.5% from September
30, 2002. Our overall foreign loan portfolio, composed primarily of loans in
Guam and Saipan, represents a relatively small component 1.4% of our total
loan portfolio at September 30, 2003.

We generally place a loan or lease on nonaccrual status when we believe that
collection of principal or interest has become doubtful or when loans and
leases are 90 days past due as to principal or interest, unless they are well
secured and in the process of collection. We may make an exception to the
general 90-day-past-due rule when the fair value of the collateral exceeds our
recorded investment in the loan.

While the majority of consumer loans and leases are subject to our general
policies regarding nonaccrual loans, certain past-due consumer loans and leases
are not placed on nonaccrual status because they are charged off upon reaching
a predetermined delinquency status varying from 120 to 180 days, depending on
product type.

When we place a loan or lease on nonaccrual status, previously accrued and
uncollected interest is reversed against interest income of the current period.
When we receive a cash interest payment on a nonaccrual loan, we apply it as a
reduction of the principal balance when we have doubts about the ultimate
collection of the principal. Otherwise, we record such payments as income.

Nonaccrual loans and leases are generally returned to accrual status when they:
(1) become current as to principal and interest and have demonstrated a
sustained period of payment performance or (2) become both well secured and in
the process of collection.

Other than the loans listed, we were not aware of any significant potential
problem loans where possible credit problems of the borrower caused us to
seriously question the borrowers ability to repay the loan under existing
terms. Loans past due 90 days or more and still accruing interest totaled $26.7
million at September 30, 2003 an increase of $5.6 million, or 26.4%, from
December 31, 2002 and a decrease of $0.5 million, or 1.9%, from September 30,
2002. The increase at September 30, 2003 compared to December 31, 2002 was
primarily due to commercial, financial and agricultural lending which increased
$6.8 million or 75.4% from December 31, 2002 and real estate-commercial loans
which increased $3.3 million or 110.9%. These increases were partially offset
by decreases in residential real estate loans of $3.6 million or 70.5% from
December 31, 2002 and decreases in foreign loans of $1.0 million or 82.0% from
December 31, 2002. The decrease at September 30, 2003 compared to September
30, 2002 was primarily due to real estate loans that decreased $4.0 million or
33.3% and foreign loans that decreased $3.0 million or 93.3% from last year,
partially offset by commercial, financial and agricultural loans which
increased $6.2 million or 64.7% from last year. All of the loans that are
past due 90 days or more and still accruing interest are, in our judgment,
adequately collateralized and in the process of collection.

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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 CREDIT LOSSES

The following table sets forth the activity in the allowance for credit losses
for the periods indicated:

|                                                                               |                                |                                                      |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |         |        |         |  
|------------------------------------------------------------------------------ | ------------------------------ | ---------------------------------------------------- | ----------------------------------------------------------- | ------- | ---------------------- | ------- | ----------------- | ------- | ------ | ------- | ---------- | ------- | ------ | ------- | ---------- | ------- | ------ | ------- | -
|                                                                               |                                |                                                      |                                                             |         | Three Months Ended     |         | Nine Months Ended
|                                                                               |                                |                                                      |                                                             |         | September 30,          |         | September 30,    
|                                                                               |                                |                                                      |                                                             |         |                        |         |                  
|                                                                               |                                |                                                      |                                                             |         | 2003                   |         | 2002              |         | 2003   |         | 2002      
|                                                                               |                                |                                                      |                                                             |         |                        |         |                   |         |        |         |           
|                                                                               |                                |                                                      |                                                             |         | (dollars in thousands)
|Loans and leases outstanding (end of period)                                   |                                | $                                                    | 25,264,537                                                  |         |                        | $       | 24,071,689        |         |        | $       | 25,264,537 |         |        | $       | 24,071,689 |        
|                                                                               |                                |                                                      |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |        
|Allowance for credit losses:                                                   |                                |                                                      |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |        
|                                                                               | Balance at beginning of period |                                                      | $                                                           | 391,518 |                        |         | $                 | 387,272 |        |         | $          | 384,081 |        |         | $          | 194,654 |       
|                                                                               | Allowance purchased            |                                                      |                                                             |        |                        |         |                   |        |        |         |            |        |        |         |            | 210,000 |       
|                                                                               | Loans and leases charged off:  |                                                      |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |         |       
|                                                                               |                                | Commercial, financial and agricultural               |                                                             |         | 13,344                 |         |                   |         | 16,512 |         |            |         | 33,213 |         |            |         | 49,956 |        
|                                                                               |                                | Real estate:                                         |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |         |        |        
|                                                                               |                                |                                                      | Commercial                                                  |         |                        | 216     |                   |         |        | 1,970   |            |         |        | 1,270   |            |         |        | 3,604   |  
|                                                                               |                                |                                                      | Residential                                                 |         |                        | 161     |                   |         |        | 241     |            |         |        | 757     |            |         |        | 950     |  
|                                                                               |                                | Consumer                                             |                                                             |         | 12,658                 |         |                   |         | 11,469 |         |            |         | 41,769 |         |            |         | 30,440 |        
|                                                                               |                                | Lease financing                                      |                                                             |         | 5,833                  |         |                   |         | 5,017  |         |            |         | 18,930 |         |            |         | 22,294 |        
|                                                                               |                                | Foreign                                              |                                                             |         | 537                    |         |                   |         | 647    |         |            |         | 1,896  |         |            |         | 1,515  |        
|                                                                               |                                |                                                      |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |        
|                                                                               |                                |                                                      | Total loans and leases charged off                          |         |                        | 32,749  |                   |         |        | 35,856  |            |         |        | 97,835  |            |         |        | 108,759 |  
|                                                                               |                                |                                                      |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |        
|Recoveries on loans and leases previously charged off:                         |                                |                                                      |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |        
|                                                                               |                                | Commercial, financial and agricultural               |                                                             |         | 2,156                  |         |                   |         | 2,912  |         |            |         | 23,017 |         |            |         | 6,413  |        
|                                                                               |                                | Real estate:                                         |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |         |        |        
|                                                                               |                                |                                                      | Commercial                                                  |         |                        | 87      |                   |         |        | 82      |            |         |        | 288     |            |         |        | 328     |  
|                                                                               |                                |                                                      | Construction                                                |         |                        | 34      |                   |         |        | 17      |            |         |        | 98      |            |         |        | 271     |  
|                                                                               |                                |                                                      | Residential                                                 |         |                        | 256     |                   |         |        | 122     |            |         |        | 864     |            |         |        | 538     |  
|                                                                               |                                | Consumer                                             |                                                             |         | 2,986                  |         |                   |         | 2,749  |         |            |         | 8,897  |         |            |         | 6,890  |        
|                                                                               |                                | Lease financing                                      |                                                             |         | 1,648                  |         |                   |         | 1,457  |         |            |         | 4,642  |         |            |         | 5,244  |        
|                                                                               |                                | Foreign                                              |                                                             |         | 113                    |         |                   |         | 135    |         |            |         | 447    |         |            |         | 402    |        
|                                                                               |                                |                                                      |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |        
|                                                                               |                                |                                                      | Total recoveries on loans and leases previously
charged off |         |                        | 7,280   |                   |         |        | 7,474   |            |         |        | 38,253  |            |         |        | 20,086  |  
|                                                                               |                                |                                                      |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |        
|                                                                               |                                |                                                      | Net charge-offs                                             |         |                        | (25,469 | )                 |         |        | (28,382 | )          |         |        | (59,582 | )          |         |        | (88,673 | )
|                                                                               |                                |                                                      |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |        
|                                                                               | Provision for credit losses    |                                                      |                                                             | 24,145  |                        |         |                   | 26,300  |        |         |            | 65,695  |        |         |            | 69,209  |       
|                                                                               |                                |                                                      |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |        
|                                                                               | Balance at end of period       |                                                      | $                                                           | 390,194 |                        |         | $                 | 385,190 |        |         | $          | 390,194 |        |         | $          | 385,190 |       
|                                                                               |                                |                                                      |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |        
|Net loans and leases charged off to average loans and leases                   |                                |                                                      | 0.40                                                        | %(1)    |                        |         | 0.47              | %(1)    |        |         | 0.32       | %(1)    |        |         | 0.55       | %(1)   
|Net loans and leases charged off to allowance for credit
losses                |                                |                                                      | 25.90                                                       | %(1)    |                        |         | 29.23             | %(1)    |        |         | 20.42      | %(1)    |        |         | 30.78      | %(1)   
|Allowance for credit losses to total loans and leases (end
of period)          |                                |                                                      | 1.54                                                        | %       |                        |         | 1.60              | %       |        |         | 1.54       | %       |        |         | 1.60       | %      
|Allowance for credit losses to nonperforming loans and
leases (end of period): |                                |                                                      |                                                             |         |                        |         |                   |         |        |         |            |         |        |         |            |        
|                                                                               |                                | Excluding 90 days past due accruing loans and leases |                                                             |         | 2.44                   | x       |                   |         | 1.52   | x       |            |         | 2.44   | x       |            |         | 1.52   | x      
|                                                                               |                                | Including 90 days past due accruing
loans and leases |                                                             |         | 2.09                   | x       |                   |         | 1.37   | x       |            |         | 2.09   | x       |            |         | 1.37   | x      



|(1) |  | Annualized.
|--- |  | -----------

The allowance for credit losses for the first nine months of 2003 was $390.2
million, an increase of $5.0 million, or 1.3%, compared to the same period in
2002. The provision for credit losses is based upon our judgment as to the
adequacy of the allowance for credit losses to absorb probable losses inherent
in the portfolio as of the balance sheet date. The Company uses a systematic
methodology to determine the adequacy of the Allowance and related provision
for credit losses to be reported for financial statement purposes. The
determination of the adequacy of the Allowance is ultimately one of judgment,
which includes consideration of many factors, including, among other things,
the amount of problem and potential problem loans and leases, net charge-off
experience, changes in the composition of the loan and lease portfolio by type
and location of loans and leases and in overall loan and lease risk profile and
quality, general economic factors and the fair value of collateral.

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##### Table of Contents



BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

Our approach to managing exposure to credit risk involves an integrated program
of setting appropriate standards for credit underwriting and diversification,
monitoring trends that may affect the risk profile of the credit portfolio and
making appropriate adjustments to reflect changes in economic and financial
conditions that could affect the quality of the portfolio and loss probability.
The components of this integrated program include:



| |  |  | Setting Underwriting and Grading Standards.Our loan grading system
utilizes ten different principal risk categories where 1 is no risk
and 10 is loss. Risk parameters are established so that 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 concentration by obligor, risk grade, industry, product and
geographic location. As part of this process, we also monitor changes in
risk correlation among concentration categories. 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.Over the past few years, we have reduced our
exposure to higher-risk areas such as real estate-construction (which
accounted for only 3.6% of total loans and leases at September 30,
2003), as well as Hawaiian commercial real estate and agricultural
loans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| |  |  | Reduced Participation in Syndicated National Credits. We are in the
process of exiting from the syndicated national credit and media finance
areas. At September 30, 2003, the ratio of nonperforming shared
national credits and media finance loans to total shared national
credits and media finance loans outstanding was 5.1%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  |  | Emphasis on High Quality Consumer Lending.Consumer loans represent
our single largest category of loans and leases. We focus our consumer
lending activities on loan grades with what we believe are predictable
loss rates. As a result, we are able to use formula-based approaches to
calculate appropriate reserve levels that reflect historical experience.
We generally do not participate in subprime lending activities. We also
seek to reduce our exposures where feasible by obtaining third-party
insurance or similar protections. For example, in our vehicle lease
portfolio (which represents approximately 55.4% of our lease financing
portfolio and 13.8% of our combined lease financing and consumer loans
at September 30, 2003), we obtain third-party insurance for the
estimated residual value of the leased vehicle.

Net charge-offs were $59.6 million for the nine months ended September 30,
2003, a decrease of $29.1 million, or 32.8%, from the same period in 2002.
Charge-offs were higher in the nine months ended September 30, 2002 primarily
due to charge-offs required in late March 2002 on the UCB portfolio. These
charge-offs were contested with UFJ and settlement, resulting in $13.6 million
of recoveries, was reached in the first quarter, as discussed in Item 1, Note 2
(Mergers and Acquisitions).

For the nine months ended September 30, 2003, recoveries increased by $18.2
million, or 90.4%, compared to the same period in 2002. The increase in
recoveries was primarily in commercial, financial and agricultural loans, due
to the settlement with UFJ discussed above.

Net charge-offs for the nine months ended September 30, 2003 were 0.32% of
average loans and leases (annualized) compared to 0.55% (annualized) for the
same period in 2002.

The Allowance increased to 2.44 times nonperforming loans and leases (excluding
90 days or more past due accruing loans and leases) at September 30, 2003 from
1.52 times at September 30, 2002.

In our judgment, the Allowance was adequate to absorb losses inherent in the
loan and lease portfolio at September 30, 2003. However, changes in prevailing
economic conditions in our markets could result in changes in the level of
nonperforming assets and charge-offs in the future and, accordingly, changes in
the Allowance. We will continue to closely monitor economic developments and
make necessary adjustments to the Allowance accordingly.

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##### Table of Contents



BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS




DEPOSITS

Deposits are the largest component of our total liabilities and account for a
significant portion of total interest expense. At September 30, 2003, total
deposits were $25.9 billion, an increase of 5.6% from December 31, 2002, and an
increase of 6.4% over September 30, 2002. The increase was primarily due to
the growth in our customer deposit base and various deposit product programs
that we initiated.

During the 12-month period from October 1, 2002 to September 30, 2003, the
benchmark federal funds rate was decreased by 75 basis points contributing to
lower interest rates on deposits.




LIQUIDITY MANAGEMENT

Liquidity refers to our ability to provide sufficient short- and long-term cash
flows to fund operations and to meet obligations and commitments, including
depositor withdrawals and debt service, on a timely basis at reasonable costs.
We achieve our liquidity objectives with both assets and liabilities. We obtain
short-term asset-based liquidity through our investment securities portfolio
and short-term investments that can be readily converted to cash. These liquid
assets consist of cash and due from banks, interest-bearing deposits in other
banks, federal funds sold, trading assets, securities purchased under
agreements to resell and investment securities. Such assets represented 20.2%
of total assets at September 30, 2003, compared to 17.8% at
December 31, 2002 and 16.6% at September 30, 2002.

Intermediate and longer-term asset liquidity is primarily provided by regularly
scheduled maturities and cash flows from our loans and investment securities.
Additional liquidity is available from certain assets that can be sold or
securitized, such as consumer and mortgage loans. We obtain short-term
liability-based liquidity primarily from deposits. Average total deposits for
the three months ended September 30, 2003 were
$25.4 billion, compared to $22.3 billion for the year ended December 31, 2002. Average total deposits funded
69.3% of average total assets for the nine months ended September 30, 2003 and
71.0% for the year ended December 31, 2002.

We also obtain short-term liquidity from ready access to regional and national
wholesale funding sources, including issuing our own certificates of deposit,
purchasing federal funds, selling securities under agreements to repurchase,
arranging lines of credit from other banks and obtaining credit facilities from
the Federal Home Loan Banks. Offshore
deposits in the international market provide another available source of funds.

Funds taken in the intermediate and longer-term markets are structured to avoid
concentration of maturities and to reduce refinancing risk. We also attempt to
diversify the types of instruments issued to avoid undue reliance on any one
market.

Liquidity for the parent company is primarily provided by dividend and interest
income from its subsidiaries. Short-term cash requirements are met through
liquidation of short-term investments. Longer-term liquidity is provided by
access to the capital markets and the ability to obtain resources from BNP
Paribas.




CAPITAL

Stockholders equity increased to $4.2 billion at September 30, 2003 from $3.9
billion at December 31, 2002, an increase of $290.0 million, or 7.5%.
Stockholders equity at September 30, 2003 increased as compared to September
30, 2002 by $225.7 million, or 5.7%. The increase from
December 31, 2002 to September 30, 2003 was primarily due to net income earned by the Company
during the nine-month period. The increase from September 30,
2002 to
September 30, 2003 was primarily due to net income earned during the twelve
month period and offset by a $167.0 million adjustment to properly reflect BNP
Paribas accounting basis in BancWest following its purchase on December 19,
2001 of the remaining 55% of outstanding voting stock it did not already own.
This adjustment, recognized in the fourth quarter of 2002, was recorded as a
decrease in the surplus category of the Companys stockholders equity.

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##### Table of Contents



BancWest Corporation and Subsidiaries
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

Capital adequacy regulations require the Companys depository institution
subsidiaries to maintain minimum ratios of Tier 1 Capital and Total Capital to
risk-weighted assets and of Tier 1 Capital to average assets (leverage). These
amounts and ratios as of September 30, 2003 are set forth below:

|                                |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  |              |           |  |  |  |       |  
|------------------------------- | ------- | ---------------- |  | ------ | --------- | ----------------- |  | ---------- | ----- | ------ |  | ----------- | --------- | ----------------- |  |  | ---- | - |  | ------------ | --------- |  |  |  | ----- | -
|                                |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  | To Be Well  
|                                |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  | Capitalized 
|                                |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  | Under Prompt
|                                |         |                  |  |        |           |                   |  |            |       |        |  | For Capital |           | Corrective Action
|                                |         |                  |  | Actual |           | Adequacy Purposes |  | Provisions
|                                |         |                  |  |        |           |                   |  |           
|(dollars in thousands)          |         | Amount           |  | Ratio  |           | Amount            |  | Ratio      |       | Amount |  | Ratio      
|                                |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                  
|Tier 1 Capital to Risk-Weighted |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  |              |           |  |  | 
|                                | Assets: |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  |              |           |  |  |  |      
|                                |         | Bank of the West |  | $      | 2,393,456 |                   |  |            | 10.56 | %      |  | $           | 906,245   |                   |  |  | 4.00 | % |  | $            | 1,359,368 |  |  |  | 6.00  | %
|                                |         | First Hawaiian   |  |        | 820,493   |                   |  |            | 12.51 |        |  |             | 262,282   |                   |  |  | 4.00 |   |  |              | 393,423   |  |  |  | 6.00  |  
|Total Capital to Risk-Weighted  |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  |              |           |  |  | 
|                                | Assets: |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  |              |           |  |  |  |      
|                                |         | Bank of the West |  | $      | 2,901,978 |                   |  |            | 12.81 | %      |  | $           | 1,812,490 |                   |  |  | 8.00 | % |  | $            | 2,265,613 |  |  |  | 10.00 | %
|                                |         | First Hawaiian   |  |        | 975,535   |                   |  |            | 14.88 |        |  |             | 524,563   |                   |  |  | 8.00 |   |  |              | 655,704   |  |  |  | 10.00 |  
|Tier 1 Capital to Average       |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  |              |           |  |  | 
|                                | Assets: |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  |              |           |  |  |  |      
|                                |         | Bank of the West |  | $      | 2,393,456 |                   |  |            | 9.36  | %      |  | $           | 1,023,169 |                   |  |  | 4.00 | % |  | $            | 1,278,961 |  |  |  | 5.00  | %
|                                |         | First Hawaiian   |  |        | 820,493   |                   |  |            | 9.68  |        |  |             | 339,159   |                   |  |  | 4.00 |   |  |              | 423,948   |  |  |  | 5.00  |  

We elected to become a financial holding company concurrent with the BNP
Paribas acquisition. Because of this election, only our depository institution
subsidiaries are subject to various regulatory capital requirements
administered by the Federal banking agencies. If these subsidiaries fail to
meet minimum capital requirements, the Federal agencies can initiate certain
mandatory actions. Such regulatory actions could have a material effect on the
Companys financial statements.

Under capital adequacy guidelines and the regulatory framework for prompt
corrective action, our depository institution subsidiaries must each meet
specific capital guidelines that involve quantitative measures of our assets,
liabilities and certain off-balance-sheet items as calculated under regulatory
accounting practices. These capital amounts and classifications are also
subject to qualitative judgments by the regulators about components, risk
weightings and other factors.

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##### Table of Contents



BancWest Corporation and Subsidiaries
QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK




Item 3. Quantitative and Qualitative Disclosures About Market Risk

INTEREST RATE RISK MEASUREMENT AND MANAGEMENT

The Companys net interest income is subject to interest rate risk to the
extent our interest-bearing liabilities (primarily deposits and borrowings)
mature or reprice on a different basis than our interest-earning assets
(primarily loans and leases and investment securities). When interest-bearing
liabilities mature or reprice more quickly than interest-earning assets during
a given period, an increase in interest rates could reduce net interest income.
Similarly, when interest-earning assets mature or reprice more quickly than
interest-bearing liabilities, a decrease in interest rates could have a
negative impact on net interest income. In addition, the impact of interest
rate swings may be exacerbated by factors such as our customers propensity to
manage their demand deposit balances more or less aggressively or to refinance
mortgage and other consumer loans depending on the interest rate environment.

The Asset/Liability Committees of the Company and our major subsidiaries are
responsible for managing interest rate risk. The Asset/Liability Committees
generally meet monthly or quarterly. The committees may recommend changes to a
particular subsidiarys interest rate profile to their respective Board of
Directors, should changes be necessary and depart significantly from
established policies. Derivatives entered into for trading purposes include
commitments to purchase and sell foreign currencies and mortgage-backed
securities as well as certain interest rate swaps and options.

We also enter into customer accommodation interest rate swaps and foreign
exchange spot and forward contracts as well as contracts to offset either the
customers counter-position or our foreign currency denominated deposits. These
contracts basically offset each other and they do not expose us to material
losses resulting from interest rate or foreign currency fluctuations.

The Company models our net interest income in order to quantify our exposure to
changes in interest rates. Generally, the size of the balance sheet is held
relatively constant and then subjected to interest rate shocks up in 100
basis-point increments and down in a 50 basis-point increment. Each
account-level item is repriced according to its respective contractual
characteristics, including any embedded options which might exist (e.g.,
periodic interest rate caps or floors on loans and leases which permit the
borrower to prepay the principal balance of the loan or lease prior to maturity
without penalty). Derivative financial instruments such as interest rate swaps,
swaptions, caps or floors are included as part of the modeling process. For
each interest rate shock scenario, net interest income over a 12-month horizon
is compared against the results of a scenario in which no interest rate change
occurs (flat rate scenario) to determine the level of interest rate risk at
that time.

The projected impact of incremental increases and a 50 basis-point decrease in
interest rates on the Companys consolidated net interest income
over the 12 months beginning October 1, 2003 is shown below:

|                      |  |      |         |     |  |     |         |      |  |       |         |    |  |   |         |   |  |   |         |   
|--------------------- |  | ---- | ------- | --- |  | --- | ------- | ---- |  | ----- | ------- | -- |  | - | ------- | - |  | - | ------- | --
|(dollars in millions) |  | + 3% |         | +2% |  | +1% |         | Flat |  | -0.5%
|                      |  |      |         |     |  |     |         |      |  |      
|October 1, 2003       |  |      |         |     |  |     |         |      |  |       |         |    |  |   |         |   |  |   |         |   
|Net interest income   |  | $    | 1,276.8 |     |  | $   | 1,285.2 |      |  | $     | 1,290.5 |    |  | $ | 1,302.9 |   |  | $ | 1,295.6 |   
|Difference from flat  |  |      | (26.1   | )   |  |     | (17.7   | )    |  |       | (12.4   | )  |  |   |        |   |  |   | (7.3    | ) 
|% variance            |  |      | (2.0    | )%  |  |     | 1.4     | %    |  |       | (1.0    | )% |  |   |        | % |  |   | (0.6    | )%

The changes in the models are due to differences in interest rate environments
which include the absolute level of interest rates, the shape of the yield
curve and spreads between benchmark rates.

Significant Assumptions Utilized And Inherent Limitations

The net interest income changes for each interest rate scenario presented above
include assumptions based on accelerating or decelerating mortgage and
installment loan prepayments in declining or rising scenarios, respectively,
and adjusting deposit levels and mix in the different interest rate scenarios. The magnitude of changes to both
areas in turn is based upon analyses of customers historic behavior in
differing rate environments. However, these analyses may differ from actual
future customer behavior. For example, actual prepayments may differ from
current assumptions as prepayments are affected by many variables which cannot
be

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BancWest Corporation and Subsidiaries
QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (continued)

predicted with certainty (e.g., prepayments of mortgages may differ on fixed
and adjustable loans depending upon current interest rates, expectations of
future interest rates, availability of refinancing, economic benefit to
borrower, financial viability of borrower, etc.).

As with any model for analyzing interest rate risk, certain limitations are
inherent in the method of analysis presented above. For example, the actual
impact on net interest income due to certain interest rate shocks may differ
from those projections presented should market conditions vary from assumptions
used in the analysis. Furthermore, the analysis does not consider the effects
of a changed level of overall economic activity that could exist in certain
interest rate environments. Moreover, the method of analysis used does not take
into account the actions that management might take to respond to changes in
interest rates because of inherent difficulties in determining the likelihood
or impact of any such response.

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##### Table of Contents



BancWest Corporation and Subsidiaries
CONTROLS AND PROCEDURES




Item 4. Controls and Procedures

As of the end of the period covered by the filing date of this report, the
Company carried out an evaluation, under the supervision and with the
participation of the Companys management, including the Companys chairman and
chief executive officer and its chief financial officer, of the effectiveness
of the design and operation of the Companys disclosure controls and procedures
pursuant to Exchange Act Rule 13a-15. Based upon that evaluation, its chairman
and chief executive officer and its chief financial officer concluded that the
Companys disclosure controls and procedures are effective in timely alerting
them to material information relating to the Company (including its
consolidated subsidiaries) required to be included in the Companys periodic
SEC filings.

There were no significant changes in the Companys internal controls or in
other factors that could significantly affect these controls subsequent to the
date of their most recent evaluation.




PART II. OTHER INFORMATION




Item 6. Exhibits and Reports on Form 8-K

The Exhibits listed below are filed or incorporated by reference as part of
this Report.

|                         |                                                                                                                                                                                                        
|------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a)  Exhibits            |                                                                                                                                                                                                        
|                        
|12                       | Statement regarding computation of ratios.                                                                                                                                                             
|                        
|31                       | Section 302 Certifications                                                                                                                                                                             
|                        
|32                       | Section 1350 Certifications                                                                                                                                                                            
|                        
|(b)  Reports on Form 8-K | On July 17, 2003, the Company filed a Report on
Form 8-K that provided information under Items 7 and 9 concerning the
Companys financial results for the year-to-date and quarter ended June
30, 2003.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

|                        |  |                              |                                 | 
|----------------------- |  | ---------------------------- | ------------------------------- | 
|                        |  | BANCWEST CORPORATION        
|                        |  | (Registrant)                
|                        |  |                              |                                 | 
|Date: November 11, 2003 |  | By    /s/ Douglas C. Grigsby
|                        |  |                              |                                
|                        |  |                              | Douglas C. Grigsby             
|                        |  |                              | Executive Vice President, Chief
|                        |  |                              | Financial Officer and Treasurer
|                        |  |                              | (principal financial officer)  

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EXHIBIT INDEX

|            |    |         |                                            |  | 
|----------- | -- | ------- | ------------------------------------------ |  | 
|Exhibit No. |    | Exhibit
|            |    |        
|            | 12 |         | Statement regarding computation of ratios.
|            |    |         |                                            | 
|            | 31 |         | Section 302 Certifications                
|            |    |         |                                            | 
|            | 32 |         | Section 1350 Certifications