##### Table of Contents



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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D. C. 20549



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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, 2001                                                              |  | 
|           |  | OR                                                                                                                     |  | 
|[   ]      |  | TRANSITION REPORT
        PURSUANT TO SECTION 13 OR 15(d) OF THE
               
     SECURITIES EXCHANGE ACT OF 1934  |  | 

For the transition period from _____________________ to _____________________

Commission file number 0-7949



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BANCWEST CORPORATION
(Exact name of registrant as specified in its charter)



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

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



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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  [X]      No  [   ]

The number of shares outstanding of each of the issuers classes
of common stock as of October 31, 2001 was:

|                                                                               |  |                                              
|------------------------------------------------------------------------------ |  | ---------------------------------------------
|Class                                                                          |  | Outstanding                                  
|                                                                               |  |                                              
|Common Stock, $1.00 Par Value 
          Class A Common Stock, $1.00 Par Value |  | 68,757,459 Shares
          56,074,874 Shares



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TABLE OF CONTENTS



|                              |                                                                                               |                                                                        |  |  |  |  |  | 
|----------------------------- | --------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------- |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION
|                              | Item 1. Financial Statements                                                                 
|                              |                                                                                               | CONSOLIDATED BALANCE SHEETS (Unaudited)                               
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF INCOME (Unaudited)                         
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (Unaudited)
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)                     
|                              |                                                                                               | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)                
|                              | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|                              | Item 3. Quantitative and Qualitative Disclosures About Market Risk                           
|PART II. OTHER INFORMATION   
|                              | Item 4. Submission of Matters to a Vote of Security Holders                                  
|                              | Item 6. Exhibits and Reports on Form 8-K                                                     
|SIGNATURES                   
|EXHIBIT INDEX                
|EXHIBIT 10.27                
|EXHIBIT 12                   



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##### Table of Contents



|                                                                                              |                                                                                                                  |  |       |     | 
|--------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- |  | ----- | --- | 
|                                                                                              |                                                                                                                  |  | Page 
|                                                                                              |                                                                                                                  |  |      
|PART I. FINANCIAL INFORMATION                                                                 |                                                                                                                  |  |       |    
|Item 1. Financial Statements (Unaudited)                                                      |                                                                                                                  |  |       |    
|                                                                                              | Consolidated Balance Sheets at September 30, 2001, December 31, 2000 and
September 30, 2000                      |  |       | 2-3 | 
|                                                                                              | Consolidated Statements of Income for the three and nine months ended
September 30, 2001 and 2000                |  |       | 4   | 
|                                                                                              | Consolidated Statements of Changes in Stockholders Equity for the nine
months ended September 30, 2001 and 2000 |  |       | 5   | 
|                                                                                              | Consolidated Statements of Cash Flows for the nine months ended
September 30, 2001 and 2000                      |  |       | 6   | 
|                                                                                              | Notes to Consolidated Financial Statements                                                                       |  |       | 7-9 | 
|Item 2. Managements Discussion and Analysis of Financial Condition and Results
of Operations |                                                                                                                  |  | 10-29 |    
|Item 3. Quantitative and Qualitative Disclosures About Market Risk                            |                                                                                                                  |  | 29    |    
|PART II. OTHER INFORMATION                                                                    |                                                                                                                  |  |       |    
|Item 4. Submission of Matters to a Vote of Security Holders                                   |                                                                                                                  |  | 31    |    
|Item 6. Exhibits and Reports on Form 8-K                                                      |                                                                                                                  |  | 31    |    
|SIGNATURES                                                                                    |                                                                                                                  |  | 32    |    
|EXHIBIT INDEX                                                                                 |                                                                                                                  |  |       |    

1



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##### Table of Contents






PART I. FINANCIAL INFORMATION




Item 1. Financial Statements

BancWest Corporation and Subsidiaries




CONSOLIDATED BALANCE SHEETS
(Unaudited)

|                                                                                                          |                                  |                     |            |                |            |              |            |               |            |   |            |            |            | 
|--------------------------------------------------------------------------------------------------------- | -------------------------------- | ------------------- | ---------- | -------------- | ---------- | ------------ | ---------- | ------------- | ---------- | - | ---------- | ---------- | ---------- | 
|                                                                                                          |                                  |                     |            | September 30,  |            | December 31, |            | September 30,
|                                                                                                          |                                  |                     |            | 2001           |            | 2000         |            | 2000         
|                                                                                                          |                                  |                     |            |                |            |              |            |              
|                                                                                                          |                                  |                     |            | (in thousands)
|Assets                                                                                                    |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Cash and due from banks                                                                                   |                                  | $                   | 851,996    |                |            | $            | 873,599    |               |            | $ | 652,126    |           
|Interest-bearing deposits in other banks                                                                  |                                  |                     | 102,518    |                |            |              | 5,972      |               |            |   | 158,722    |           
|Federal
          funds sold and securities purchased 
          under agreements to resell               |                                  |                     | 65,000     |                |            |              | 307,100    |               |            |   | 348,700    |           
|Investment securities:                                                                                    |                                  |                     |            |                |            |              |            |               |            |   |            |           
|                                                                                                          | Held-to-maturity                 |                     |            | 92,535         |            |              |            | 92,940        |            |   |            | 99,905     |           
|                                                                                                          | Available-for-sale               |                     |            | 2,299,659      |            |              |            | 1,960,780     |            |   |            | 1,920,127  |           
|Loans and leases:                                                                                         |                                  |                     |            |                |            |              |            |               |            |   |            |           
|                                                                                                          | Loans and leases                 |                     |            | 14,912,144     |            |              |            | 13,971,831    |            |   |            | 13,565,820 |           
|                                                                                                          | Less allowance for credit losses |                     |            | 188,717        |            |              |            | 172,443       |            |   |            | 171,386    |           
|                                                                                                          |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Net loans and leases                                                                                      |                                  |                     | 14,723,427 |                |            |              | 13,799,388 |               |            |   | 13,394,434 |           
|                                                                                                          |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Premises and equipment, net                                                                               |                                  |                     | 286,034    |                |            |              | 276,012    |               |            |   | 274,178    |           
|Customers acceptance liability                                                                           |                                  |                     | 1,301      |                |            |              | 1,080      |               |            |   | 667        |           
|Core deposit intangible, net                                                                              |                                  |                     | 70,783     |                |            |              | 56,640     |               |            |   | 58,865     |           
|Goodwill, net                                                                                             |                                  |                     | 665,952    |                |            |              | 599,139    |               |            |   | 605,428    |           
|Other
          real estate owned and repossessed 
          personal property                            |                                  |                     | 22,610     |                |            |              | 27,479     |               |            |   | 31,300     |           
|Other assets                                                                                              |                                  |                     | 572,398    |                |            |              | 456,937    |               |            |   | 428,129    |           
|                                                                                                          |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Total assets                                                                                              |                                  | $                   | 19,754,213 |                |            | $            | 18,457,066 |               |            | $ | 17,972,581 |           
|                                                                                                          |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Liabilities and Stockholders Equity                                                                      |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Deposits:                                                                                                 |                                  |                     |            |                |            |              |            |               |            |   |            |           
|                                                                                                          | Domestic:                        |                     |            |                |            |              |            |               |            |   |            |            |           
|                                                                                                          |                                  | Interest-bearing    |            | $              | 11,149,942 |              |            | $             | 10,899,009 |   |            | $          | 10,671,848 | 
|                                                                                                          |                                  | Noninterest-bearing |            |                | 3,255,521  |              |            |               | 2,955,880  |   |            |            | 2,853,278  | 
|                                                                                                          | Foreign                          |                     |            | 263,267        |            |              |            | 273,250       |            |   |            | 318,897    |           
|                                                                                                          |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Total deposits                                                                                            |                                  |                     | 14,668,730 |                |            |              | 14,128,139 |               |            |   | 13,844,023 |           
|                                                                                                          |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Federal
          funds purchased and securities sold 
          under agreements to repurchase           |                                  |                     | 881,526    |                |            |              | 577,620    |               |            |   | 458,581    |           
|Other short-term borrowings                                                                               |                                  |                     | 146,370    |                |            |              | 91,448     |               |            |   | 102,502    |           
|Acceptances outstanding                                                                                   |                                  |                     | 1,301      |                |            |              | 1,080      |               |            |   | 667        |           
|Other liabilities                                                                                         |                                  |                     | 886,292    |                |            |              | 786,863    |               |            |   | 736,640    |           
|Long-term debt                                                                                            |                                  |                     | 780,067    |                |            |              | 632,423    |               |            |   | 783,628    |           
|Guaranteed
          preferred beneficial interests
          in Companys junior subordinated debentures |                                  |                     | 250,000    |                |            |              | 250,000    |               |            |   | 100,000    |           
|                                                                                                          |                                  |                     |            |                |            |              |            |               |            |   |            |           
|Total liabilities                                                                                         |                                  | $                   | 17,614,286 |                |            | $            | 16,467,573 |               |            | $ | 16,026,041 |           
|                                                                                                          |                                  |                     |            |                |            |              |            |               |            |   |            |           

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,
|                                           |                                                                                                                                                                                  |                                                                                                                                                                   |            | 2001           |        | 2000         |            | 2000         
|                                           |                                                                                                                                                                                  |                                                                                                                                                                   |            |                |        |              |            |              
|                                           |                                                                                                                                                                                  |                                                                                                                                                                   |            | (in thousands)
|Stockholders equity:                      |                                                                                                                                                                                  |                                                                                                                                                                   |            |                |        |              |            |               |        |   |            |          
|                                           | Preferred
          stock, par value $1 per share 
          Authorized and unissued - 50,000,000 shares                                                                         |                                                                                                                                                                   | $          |               |        |              | $          |              |        |   | $          |          |       
|                                           | Class A common stock, par value $1 per share                                                                                                                                     |                                                                                                                                                                   |            |                |        |              |            |               |        |   |            |           |       
|                                           |                                                                                                                                                                                  | Authorized
          - 150,000,000 shares in 2001 
          and 75,000,000 shares in 2000                                                                        |            |                |        |              |            |               |        |   |            |           |        | 
|                                           |                                                                                                                                                                                  | Issued
          - 56,074,874 shares in 2001 and 2000                                                                                                             |            |                | 56,075 |              |            |               | 56,075 |   |            |           | 56,075 | 
|                                           | Common stock, par value $1 per share                                                                                                                                             |                                                                                                                                                                   |            |                |        |              |            |               |        |   |            |           |       
|                                           |                                                                                                                                                                                  | Authorized
          - 400,000,000 shares in 2001 and 
          200,000,000 shares in 2000                                                                       |            |                |        |              |            |               |        |   |            |           |        | 
|                                           |                                                                                                                                                                                  | Issued
          - 71,105,402, 71,041,450 and 71,037,884 shares at
          September 30, 2001, December 31, 2000 and
          September 30, 2000, respectively |            |                | 71,105 |              |            |               | 71,041 |   |            |           | 71,038 | 
|                                           | Surplus                                                                                                                                                                          |                                                                                                                                                                   |            | 1,127,633      |        |              |            | 1,125,652     |        |   |            | 1,124,931 |       
|                                           | Retained earnings                                                                                                                                                                |                                                                                                                                                                   |            | 890,577        |        |              |            | 770,350       |        |   |            | 735,330   |       
|                                           | Accumulated other comprehensive income, net                                                                                                                                      |                                                                                                                                                                   |            | 32,282         |        |              |            | 7,601         |        |   |            | (4,020    | )     
|                                           | Treasury
          stock, at cost - 2,347,943, 2,565,581 and 2,383,705 shares 
          at September 30, 2001, December 31, 2000 and
          September 30, 2000, respectively |                                                                                                                                                                   |            | (37,745        | )      |              |            | (41,226       | )      |   |            | (36,814   | )     
|                                           |                                                                                                                                                                                  |                                                                                                                                                                   |            |                |        |              |            |               |        |   |            |          
|Total stockholders equity                 |                                                                                                                                                                                  |                                                                                                                                                                   | 2,139,927  |                |        |              | 1,989,493  |               |        |   | 1,946,540  |          
|                                           |                                                                                                                                                                                  |                                                                                                                                                                   |            |                |        |              |            |               |        |   |            |          
|Total liabilities and stockholders equity |                                                                                                                                                                                  | $                                                                                                                                                                 | 19,754,213 |                |        | $            | 18,457,066 |               |        | $ | 17,972,581 |          
|                                           |                                                                                                                                                                                  |                                                                                                                                                                   |            |                |        |              |            |               |        |   |            |          

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

3



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##### Table of Contents



BancWest Corporation and Subsidiaries




CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |         | 
|------------------------------------ | ------------------------------------------------------- | - | ---------------------------------------------------------- | ------- | ------------------------------- | - | ----------- | ------- | ---- | - | ----------- | --------- |  | - | ----------- | ------- | 
|                                     |                                                         |   | Three Months Ended September 30,                           |         | Nine Months Ended September 30,
|                                     |                                                         |   |                                                            |         |                                
|                                     |                                                         |   | 2001                                                       |         | 2000                            |   | 2001        |         | 2000
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |     
|                                     |                                                         |   | (in thousands, except number of shares and per share data)
|Interest income                      |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|Interest and fees on loans           |                                                         | $ | 255,318                                                    |         |                                 | $ | 263,955     |         |      | $ | 775,160     |           |  | $ | 748,538     |        
|Lease financing income               |                                                         |   | 37,623                                                     |         |                                 |   | 32,549      |         |      |   | 109,591     |           |  |   | 95,000      |        
|Interest on investment securities:   |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|                                     | Taxable interest income                                 |   |                                                            | 35,087  |                                 |   |             | 34,229  |      |   |             | 101,838   |  |   |             | 102,868 | 
|                                     | Exempt from Federal income taxes                        |   |                                                            | 118     |                                 |   |             | 136     |      |   |             | 355       |  |   |             | 632     | 
|Other interest income                |                                                         |   | 3,184                                                      |         |                                 |   | 7,197       |         |      |   | 16,797      |           |  |   | 16,674      |        
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|                                     | Total interest income                                   |   |                                                            | 331,330 |                                 |   |             | 338,066 |      |   |             | 1,003,741 |  |   |             | 963,712 | 
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|Interest expense                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|Deposits                             |                                                         |   | 92,405                                                     |         |                                 |   | 120,389     |         |      |   | 318,687     |           |  |   | 330,200     |        
|Short-term borrowings                |                                                         |   | 8,571                                                      |         |                                 |   | 10,220      |         |      |   | 28,683      |           |  |   | 37,554      |        
|Long-term debt                       |                                                         |   | 18,953                                                     |         |                                 |   | 17,617      |         |      |   | 56,909      |           |  |   | 40,117      |        
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|                                     | Total interest expense                                  |   |                                                            | 119,929 |                                 |   |             | 148,226 |      |   |             | 404,279   |  |   |             | 407,871 | 
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|                                     | Net interest income                                     |   |                                                            | 211,401 |                                 |   |             | 189,840 |      |   |             | 599,462   |  |   |             | 555,841 | 
|Provision for credit losses          |                                                         |   | 15,950                                                     |         |                                 |   | 14,800      |         |      |   | 74,300      |           |  |   | 43,980      |        
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|                                     | Net interest income after provision for
credit losses   |   |                                                            | 195,451 |                                 |   |             | 175,040 |      |   |             | 525,162   |  |   |             | 511,861 | 
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|Noninterest income                   |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|Service charges on deposit accounts  |                                                         |   | 22,575                                                     |         |                                 |   | 19,263      |         |      |   | 65,584      |           |  |   | 54,700      |        
|Trust and investment services income |                                                         |   | 7,780                                                      |         |                                 |   | 9,451       |         |      |   | 24,990      |           |  |   | 27,234      |        
|Other service charges and fees       |                                                         |   | 19,983                                                     |         |                                 |   | 18,093      |         |      |   | 58,555      |           |  |   | 54,561      |        
|Securities gains (losses), net       |                                                         |   | 1                                                          |         |                                 |   | (28         | )       |      |   | 61,237      |           |  |   | (59         | )      
|Other                                |                                                         |   | 10,822                                                     |         |                                 |   | 6,788       |         |      |   | 29,090      |           |  |   | 25,376      |        
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|                                     | Total noninterest income                                |   |                                                            | 61,161  |                                 |   |             | 53,567  |      |   |             | 239,456   |  |   |             | 161,812 | 
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|Noninterest expense                  |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|Salaries and wages                   |                                                         |   | 52,283                                                     |         |                                 |   | 46,652      |         |      |   | 153,050     |           |  |   | 137,209     |        
|Employee benefits                    |                                                         |   | 18,086                                                     |         |                                 |   | 13,559      |         |      |   | 54,903      |           |  |   | 41,320      |        
|Occupancy expense                    |                                                         |   | 16,676                                                     |         |                                 |   | 15,836      |         |      |   | 49,917      |           |  |   | 46,752      |        
|Outside services                     |                                                         |   | 11,878                                                     |         |                                 |   | 11,001      |         |      |   | 35,380      |           |  |   | 35,131      |        
|Intangible amortization              |                                                         |   | 11,129                                                     |         |                                 |   | 9,141       |         |      |   | 32,549      |           |  |   | 27,443      |        
|Equipment expense                    |                                                         |   | 7,638                                                      |         |                                 |   | 7,310       |         |      |   | 22,728      |           |  |   | 21,654      |        
|                                     | Restructuring,
integration and other nonrecurring costs |   |                                                            |        |                                 |   |             |        |      |   |             | 3,935     |  |   |             |        | 
|Other                                |                                                         |   | 30,994                                                     |         |                                 |   | 27,980      |         |      |   | 94,026      |           |  |   | 88,990      |        
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|                                     | Total noninterest expense                               |   |                                                            | 148,684 |                                 |   |             | 131,479 |      |   |             | 446,488   |  |   |             | 398,499 | 
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|Income before income taxes           |                                                         |   | 107,928                                                    |         |                                 |   | 97,128      |         |      |   | 318,130     |           |  |   | 275,174     |        
|Provision for income taxes           |                                                         |   | 44,279                                                     |         |                                 |   | 40,316      |         |      |   | 126,793     |           |  |   | 114,949     |        
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|Net
income                           |                                                         | $ | 63,649                                                     |         |                                 | $ | 56,812      |         |      | $ | 191,337     |           |  | $ | 160,225     |        
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|Per share data(1) :                  |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|                                     | Basic
          earnings                                |   | $                                                          | .51     |                                 |   | $           | .46     |      |   | $           | 1.53      |  |   | $           | 1.29    | 
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|                                     | Diluted
          earnings                              |   | $                                                          | .50     |                                 |   | $           | .45     |      |   | $           | 1.51      |  |   | $           | 1.28    | 
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|                                     | Cash
          dividends                                |   | $                                                          | .19     |                                 |   | $           | .17     |      |   | $           | .57       |  |   | $           | .51     | 
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        
|Average shares outstanding(1)        |                                                         |   | 124,821,087                                                |         |                                 |   | 124,708,668 |         |      |   | 124,745,613 |           |  |   | 124,665,611 |        
|                                     |                                                         |   |                                                            |         |                                 |   |             |         |      |   |             |           |  |   |             |        



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|(1) |  | Per share data and average shares outstanding were computed on a
combined basis using average Class A common stock and common stock.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------

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 STOCKHOLDERS EQUITY (Unaudited)

|                                                                          |                                                                                                 |   |                                       |   |        |   |         |   |          |   |             |   |               |   |          |         |       |   |             |        |  |   |         |   |  |   |           |         | 
|------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------- | - | ------------------------------------- | - | ------ | - | ------- | - | -------- | - | ----------- | - | ------------- | - | -------- | ------- | ----- | - | ----------- | ------ |  | - | ------- | - |  | - | --------- | ------- | 
|                                                                          |                                                                                                 |   |                                       |   |        |   |         |   |          |   |             |   |               |   |          |         |       |   | Accumulated |        |  |   |         |   |  |   |          
|                                                                          |                                                                                                 |   | Class A                               |   |        |   |         |   |          |   |             |   |               |   |          |         | Other |   |             |        |  |   |         |   | 
|                                                                          |                                                                                                 |   | Common                                |   | Common |   |         |   |          |   | Retained    |   | Comprehensive |   | Treasury |         |       |   |            
|                                                                          |                                                                                                 |   | Stock                                 |   | Stock  |   | Surplus |   | Earnings |   | Income, net |   | Stock         |   | Total   
|                                                                          |                                                                                                 |   |                                       |   |        |   |         |   |          |   |             |   |               |   |         
|                                                                          |                                                                                                 |   | (in thousands, except per share data)
|Balance, December 31, 2000                                                |                                                                                                 | $ | 56,075                                |   |        | $ | 71,041  |   |          | $ | 1,125,652   |   |               | $ | 770,350  |         |       | $ | 7,601       |        |  | $ | (41,226 | ) |  | $ | 1,989,493 |        
|Comprehensive income:                                                     |                                                                                                 |   |                                       |   |        |   |         |   |          |   |             |   |               |   |          |         |       |   |             |        |  |   |         |   |  |   |           |        
|                                                                          | Net income                                                                                      |   |                                       |  |        |   |         |  |          |   |             |  |               |   |          | 191,337 |       |   |             |       |  |   |         |  |  |   |           | 191,337 | 
|                                                                          | Unrealized
          valuation adjustment,
          net of tax and reclassification adjustment |   |                                       |  |        |   |         |  |          |   |             |  |               |   |          |        |       |   |             | 24,681 |  |   |         |  |  |   |           | 24,681  | 
|                                                                          |                                                                                                 |   |                                       |   |        |   |         |   |          |   |             |   |               |   |          |         |       |   |             |        |  |   |         |   |  |   |           |        
|                                                                          | Comprehensive income                                                                            |   |                                       |  |        |   |         |  |          |   |             |  |               |   |          | 191,337 |       |   |             | 24,681 |  |   |         |  |  |   |           | 216,018 | 
|                                                                          |                                                                                                 |   |                                       |   |        |   |         |   |          |   |             |   |               |   |          |         |       |   |             |        |  |   |         |   |  |   |           |        
|Issuance of common stock                                                  |                                                                                                 |   |                                      |   |        |   | 64      |   |          |   | (95         | ) |               |   |         |         |       |   |            |        |  |   |        |   |  |   | (31       | )      
|Incentive Plan for Key Executives                                         |                                                                                                 |   |                                      |   |        |   |        |   |          |   | 30          |   |               |   |         |         |       |   |            |        |  |   |        |   |  |   | 30        |        
|Issuance
          of treasury stock under
          Stock Incentive Plan |                                                                                                 |   |                                      |   |        |   |        |   |          |   | 2,046       |   |               |   |         |         |       |   |            |        |  |   | 3,481   |   |  |   | 5,527     |        
|Cash dividends ($.57 per share)                                           |                                                                                                 |   |                                      |   |        |   |        |   |          |   |            |   |               |   | (71,110  | )       |       |   |            |        |  |   |        |   |  |   | (71,110   | )      
|                                                                          |                                                                                                 |   |                                       |   |        |   |         |   |          |   |             |   |               |   |          |         |       |   |             |        |  |   |         |   |  |   |           |        
|Balance, September 30, 2001                                               |                                                                                                 | $ | 56,075                                |   |        | $ | 71,105  |   |          | $ | 1,127,633   |   |               | $ | 890,577  |         |       | $ | 32,282      |        |  | $ | (37,745 | ) |  | $ | 2,139,927 |        
|                                                                          |                                                                                                 |   |                                       |   |        |   |         |   |          |   |             |   |               |   |          |         |       |   |             |        |  |   |         |   |  |   |           |        
|Balance, December 31, 1999                                                |                                                                                                 | $ | 51,630                                |   |        | $ | 75,419  |   |          | $ | 1,124,512   |   |               | $ | 638,687  |         |       | $ | (9,873      | )      |  | $ | (37,645 | ) |  | $ | 1,842,730 |        
|Comprehensive income:                                                     |                                                                                                 |   |                                       |   |        |   |         |   |          |   |             |   |               |   |          |         |       |   |             |        |  |   |         |   |  |   |           |        
|                                                                          | Net income                                                                                      |   |                                       |  |        |   |         |  |          |   |             |  |               |   |          | 160,225 |       |   |             |       |  |   |         |  |  |   |           | 160,225 | 
|                                                                          | Unrealized
          valuation adjustment, net of tax
          and reclassification adjustment |   |                                       |  |        |   |         |  |          |   |             |  |               |   |          |        |       |   |             | 5,853  |  |   |         |  |  |   |           | 5,853   | 
|                                                                          |                                                                                                 |   |                                       |   |        |   |         |   |          |   |             |   |               |   |          |         |       |   |             |        |  |   |         |   |  |   |           |        
|                                                                          | Comprehensive income                                                                            |   |                                       |  |        |   |         |  |          |   |             |  |               |   |          | 160,225 |       |   |             | 5,853  |  |   |         |  |  |   |           | 166,078 | 
|                                                                          |                                                                                                 |   |                                       |   |        |   |         |   |          |   |             |   |               |   |          |         |       |   |             |        |  |   |         |   |  |   |           |        
|Conversion of common stock to
Class A common stock                        |                                                                                                 |   | 4,445                                 |   |        |   | (4,445  | ) |          |   |            |   |               |   |         |         |       |   |            |        |  |   |        |   |  |   |          |        
|Issuance of common stock                                                  |                                                                                                 |   |                                      |   |        |   | 64      |   |          |   | 492         |   |               |   |         |         |       |   |            |        |  |   |        |   |  |   | 556       |        
|Incentive Plan for Key Executives                                         |                                                                                                 |   |                                      |   |        |   |        |   |          |   | (2          | ) |               |   |         |         |       |   |            |        |  |   | 58      |   |  |   | 56        |        
|Issuance of treasury stock under
Stock Incentive Plan                     |                                                                                                 |   |                                      |   |        |   |        |   |          |   | (71         | ) |               |   |         |         |       |   |            |        |  |   | 773     |   |  |   | 702       |        
|Cash dividends
          ($.51 per share)                                 |                                                                                                 |   |                                      |   |        |   |        |   |          |   |            |   |               |   | (63,582  | )       |       |   |            |        |  |   |        |   |  |   | (63,582   | )      
|                                                                          |                                                                                                 |   |                                       |   |        |   |         |   |          |   |             |   |               |   |          |         |       |   |             |        |  |   |         |   |  |   |           |        
|Balance, September 30, 2000                                               |                                                                                                 | $ | 56,075                                |   |        | $ | 71,038  |   |          | $ | 1,124,931   |   |               | $ | 735,330  |         |       | $ | (4,020      | )      |  | $ | (36,814 | ) |  | $ | 1,946,540 |        
|                                                                          |                                                                                                 |   |                                       |   |        |   |         |   |          |   |             |   |               |   |          |         |       |   |             |        |  |   |         |   |  |   |           |        

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,
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                
|                                                                                                    |                                                                                                                           |                               |                                                         |            | 2001                            |         | 2000      
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |           
|                                                                                                    |                                                                                                                           |                               |                                                         |            | (in thousands)                 
|Cash flows from operating activities:                                                               |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|                                                                                                    | Net income                                                                                                                |                               | $                                                       | 191,337    |                                 |         | $          | 160,225    |  
|                                                                                                    | Adjustments
          to reconcile net income to net cash
          provided by operating activities:                     |                               |                                                         |            |                                 |         |            |            |  
|                                                                                                    |                                                                                                                           |                               | Provision for credit losses                             |            |                                 | 74,300  |            |            |   | 43,980  |  
|                                                                                                    |                                                                                                                           |                               | Net gain on disposition of assets                       |            |                                 |        |            |            |   | (1,218  | )
|                                                                                                    |                                                                                                                           |                               | Depreciation and amortization                           |            |                                 | 58,618  |            |            |   | 52,791  |  
|                                                                                                    |                                                                                                                           |                               | Income taxes                                            |            |                                 | 89,153  |            |            |   | 82,648  |  
|                                                                                                    |                                                                                                                           |                               | Decrease (increase) in interest receivable              |            |                                 | 7,645   |            |            |   | (12,353 | )
|                                                                                                    |                                                                                                                           |                               | Increase (decrease) in interest payable                 |            |                                 | (42,857 | )          |            |   | 11,743  |  
|                                                                                                    |                                                                                                                           |                               | Increase in prepaid expenses                            |            |                                 | (6,595  | )          |            |   | (12,428 | )
|                                                                                                    |                                                                                                                           |                               | Restructuring, integration and other nonrecurring costs |            |                                 | 3,935   |            |            |   |        |  
|                                                                                                    |                                                                                                                           |                               | Other                                                   |            |                                 | (2,688  | )          |            |   | 423     |  
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|Net cash provided by operating activities                                                           |                                                                                                                           |                               | 372,848                                                 |            |                                 |         | 325,811    |           
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|Cash flows from investing activities:                                                               |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|                                                                                                    | Net increase
          in interest-bearing deposits
          in other banks                                              |                               |                                                         | (96,546    | )                               |         |            | (149,587   | )
|                                                                                                    | Net decrease
          (increase) in Federal funds sold and 
          securities purchased under agreements to resell    |                               |                                                         | 467,100    |                                 |         |            | (277,600   | )
|                                                                                                    | Proceeds
          from maturity of held-to-maturity
          investment securities                                      |                               |                                                         | 33,321     |                                 |         |            | 42,963     |  
|                                                                                                    | Purchase of held-to-maturity investment securities                                                                        |                               |                                                         | (32,916    | )                               |         |            |           |  
|                                                                                                    | Proceeds
          from maturity of available-for-sale
          investment securities                                    |                               |                                                         | 1,175,871  |                                 |         |            | 391,753    |  
|                                                                                                    | Purchase of available-for-sale investment securities                                                                      |                               |                                                         | (1,475,902 | )                               |         |            | (444,213   | )
|                                                                                                    | Proceeds
          from sale of available-for-sale
          investment securities                                        |                               |                                                         |           |                                 |         |            | 10,054     |  
|                                                                                                    | Proceeds from sale of Concord stock                                                                                       |                               |                                                         | 45,359     |                                 |         |            |           |  
|                                                                                                    | Purchase of bank owned life insurance                                                                                     |                               |                                                         | (107,459   | )                               |         |            |           |  
|                                                                                                    | Net increase in loans and leases to customers                                                                             |                               |                                                         | (774,030   | )                               |         |            | (1,087,738 | )
|                                                                                                    | Net cash provided by acquisitions                                                                                         |                               |                                                         | 632,965    |                                 |         |            |           |  
|                                                                                                    | Purchase of premises and equipment                                                                                        |                               |                                                         | (15,898    | )                               |         |            | (11,213    | )
|                                                                                                    | Other                                                                                                                     |                               |                                                         | (1,256     | )                               |         |            | (810       | )
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|Net cash used in investing activities                                                               |                                                                                                                           |                               | (149,391                                                | )          |                                 |         | (1,526,391 | )         
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|Cash flows from financing activities:                                                               |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|                                                                                                    | Net increase (decrease) in deposits                                                                                       |                               |                                                         | (685,948   | )                               |         |            | 966,071    |  
|                                                                                                    | Net increase
          (decrease) in Federal funds purchased
          and securities sold under agreements to repurchase |                               |                                                         | 303,906    |                                 |         |            | (26,507    | )
|                                                                                                    | Net increase in other short-term borrowings                                                                               |                               |                                                         | 54,922     |                                 |         |            | 83,613     |  
|                                                                                                    | Proceeds from long-term debt, net                                                                                         |                               |                                                         | 147,644    |                                 |         |            | 81,836     |  
|                                                                                                    | Cash dividends paid                                                                                                       |                               |                                                         | (71,110    | )                               |         |            | (63,582    | )
|                                                                                                    | Proceeds
          from issuance (payments on exercise)
          of common stock options                                 |                               |                                                         | (31        | )                               |         |            | 556        |  
|                                                                                                    | Proceeds from issuance of treasury stock                                                                                  |                               |                                                         | 5,557      |                                 |         |            | 758        |  
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|Net cash provided by (used in) financing activities                                                 |                                                                                                                           |                               | (245,060                                                | )          |                                 |         | 1,042,745  |           
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|Net decrease in cash and due from banks                                                             |                                                                                                                           |                               | (21,603                                                 | )          |                                 |         | (157,835   | )         
|Cash and due from banks at beginning of period                                                      |                                                                                                                           |                               | 873,599                                                 |            |                                 |         | 809,961    |           
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|Cash and due from banks at end of period                                                            |                                                                                                                           | $                             | 851,996                                                 |            |                                 | $       | 652,126    |           
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|Supplemental
disclosures:                                                                           |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|                                                                                                    | Interest paid                                                                                                             |                               | $                                                       | 440,600    |                                 |         | $          | 396,128    |  
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|                                                                                                    | Income taxes paid                                                                                                         |                               | $                                                       | 37,640     |                                 |         | $          | 32,301     |  
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|Supplemental
          schedule of noncash investing
          and financing activities:            |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|                                                                                                    | Loans
          converted into other real estate owned 
          and repossessed personal property                       |                               | $                                                       | 7,467      |                                 |         | $          | 15,645     |  
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|                                                                                                    | Loans made to facilitate the sale of other real estate owned                                                              |                               | $                                                       | 3,838      |                                 |         | $          | 3,700      |  
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|In
          connection with branch acquisitions, the following
          liabilities were assumed: |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|                                                                                                    |                                                                                                                           | Fair value of assets acquired |                                                         | $          | 14,682                          |         |            | $          |  |        
|                                                                                                    |                                                                                                                           | Cash received                 |                                                         |            | 632,965                         |         |            |            |  |        
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |            |           
|Liabilities
assumed                                                                                 |                                                                                                                           | $                             | 647,647                                                 |            |                                 | $       |           |           
|                                                                                                    |                                                                                                                           |                               |                                                         |            |                                 |         |            |           

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

6



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##### Table of Contents



BancWest Corporation and Subsidiaries




NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)



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

The accounting and reporting policies of BancWest Corporation and
Subsidiaries (BancWest, the Company or we/our) conform with generally
accepted accounting principles and practices within the banking industry. The
following is a summary of significant accounting policies:

Consolidation

The consolidated financial statements of the Company include the accounts
of BancWest Corporation (BWE) and its wholly-owned subsidiaries: Bank of the
West and its wholly-owned subsidiaries (Bank of the West); First Hawaiian
Bank and its wholly-owned subsidiaries (First Hawaiian); FHL Lease Holding
Company, Inc. and its wholly-owned subsidiary; First Hawaiian Capital I;
BancWest Capital I; and FHI International, Inc. All significant intercompany
balances and transactions have been eliminated in consolidation. In the
opinion of management, all adjustments (which included only normal recurring
adjustments) necessary for a fair presentation are reflected in the
consolidated financial statements.

Reclassifications

The 2000 Consolidated Financial Statements were reclassified in certain
respects to conform to the 2001 presentation. Such reclassifications did not
have a material effect on the Consolidated Financial Statements.



|2. |  | New Pronouncements
|-- |  | ------------------

In September 2000, the Financial Accounting Standards Board (FASB)
issued Statement of Accounting Standards (SFAS) No. 140, Accounting for
Transfer and Servicing of Financial Assets and Extinguishments of Liabilities
(a replacement of SFAS No. 125). This statement revised the standards for
accounting for securitizations and other transfers of financial assets and
collateral and requires certain disclosures, but it carries over most of SFAS
No. 125s provisions without reconsideration. This statement was effective for
transfers and servicing of financial assets and extinguishments of liabilities
occurring after March 31, 2001. This statement was effective for the
recognition and reclassification of collateral and for disclosure relating to
securitization transactions and collateral for fiscal years ending after
December 15, 2000. The adoption of SFAS No. 140 did not have a material effect
on the Companys Consolidated Financial Statements.

In January 2001, the Company adopted SFAS No. 133, Accounting for
Derivative Instruments and Hedging Activities, as amended by SFAS No. 137,
Accounting for Derivative Instruments and Hedging ActivitiesDeferral of the
Effective Date of FASB Statement No. 133 and SFAS No. 138, Accounting for
Certain Derivative Instruments and Certain Hedging ActivitiesAn Amendment of
FASB Statement No. 133. SFAS No. 133, as amended by SFAS Nos. 137 and 138,
requires the recognition of all derivative instruments in the statement of
financial position as either assets or liabilities and the measurement of
derivative instruments at fair value. The accounting for gains or losses
resulting from changes in the value of those derivatives depends on the
intended use of the derivative and whether it qualifies for hedge accounting.
The transition adjustment resulting from the adoption and implementation of
SFAS No. 133, as amended by SFAS Nos. 137 and 138, did not have a material
effect on the Companys Consolidated Financial Statements. The adoption of
these new standards was not material because the Company does not engage in
significant transactions that are covered within the scope of SFAS No. 133, as
amended by SFAS Nos. 137 and 138, specifically as it relates to the use of
derivative financial instruments.

In July 2001, the FASB issued SFAS No. 141, Business Combinations. SFAS
No. 141, which supersedes Accounting Principles Board (APB) Opinion No. 16,
Business Combinations, addresses financial accounting and reporting for
business combinations. All business combinations in the scope of SFAS No. 141
are to be accounted for using the purchase method of accounting. SFAS No. 141
also establishes specific criteria for the recognition of intangible assets
separately from goodwill. The provisions of SFAS No. 141 apply to all
business combinations initiated after June 30, 2001, as well as to all business
combinations accounted for using the purchase method of accounting for which
the date of acquisition is July 1, 2001 or later. The Company is currently
evaluating the effects of applying the provisions of SFAS No. 141 in the
accounting and reporting for the proposed acquisition of the Company by BNP
Paribas. The acquisition, subject to regulatory approval, is expected to be
consummated in the fourth quarter of 2001.

In July 2001, the FASB also issued SFAS No. 142, Goodwill and Other
Intangible Assets. SFAS No. 142, which supersedes APB Opinion No. 17,
Intangible Assets, addresses financial accounting and reporting for
intangible assets acquired individually or with a group of other assets (but
not those acquired in a business combination) at and subsequent to acquisition.
The provisions of SFAS No. 142 are effective for fiscal years beginning after
December 15, 2001 and apply to goodwill and other intangible assets recognized
in an entitys statement of financial position at the beginning of that fiscal
year, regardless of when those previously recognized assets were initially
recognized. The Company is currently evaluating the effects of adopting the
provisions of SFAS No. 142 on January 1, 2002.

In October 2001, the FASB issued SFAS No. 144, Accounting for the
Impairment or Disposal of Long-Lived Assets. SFAS No. 144 supersedes SFAS No.
121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to Be Disposed Of. However, SFAS No. 144 retains the fundamental
provisions of SFAS No. 121 for the recognition and measurement of the
impairment of long-lived assets to be held and used and the measurement of
long-lived assets to be disposed of by sale. The scope of SFAS No. 144
excludes goodwill and other non-amortizable intangible assets to be held and
used as well as goodwill associated with a reporting unit to be disposed of.
The provisions of SFAS No. 144 are effective for fiscal years beginning after
December 15, 2001. The adoption of SFAS No. 144 is not expected to have a
material effect on the Companys Consolidated Financial Statements.

7



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##### Table of Contents



BancWest Corporation and SubsidiariesNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)



|3. |  | Common Stock Information
|-- |  | ------------------------

The following is a reconciliation of the numerators and denominators used
to calculate the Companys basic and diluted earnings per share for the periods
indicated:

|                                |                                    |  |                                                            |        |                |  |           |             |             |  |                |     |           |  |   |        |  |  |  |             |  |  |   |     | 
|------------------------------- | ---------------------------------- |  | ---------------------------------------------------------- | ------ | -------------- |  | --------- | ----------- | ----------- |  | -------------- | --- | --------- |  | - | ------ |  |  |  | ----------- |  |  | - | --- | 
|                                |                                    |  | Three Months Ended September 30,                          
|                                |                                    |  |                                                           
|                                |                                    |  | 2001                                                       |        | 2000          
|                                |                                    |  |                                                            |        |               
|                                |                                    |  | Income                                                     |        | Average Shares |  | Per Share |             | Income      |  | Average Shares |     | Per Share
|                                |                                    |  | (Numerator)                                                |        | (Denominator)  |  | Amount    |             | (Numerator) |  | (Denominator)  |     | Amount   
|                                |                                    |  |                                                            |        |                |  |           |             |             |  |                |     |          
|                                |                                    |  | (in thousands, except number of shares and per share data)
|Basic:                          |                                    |  |                                                            |        |                |  |           |             |             |  |                |     |           |  |   |        |  |  |  |             |  |  |   |    
|                                | Net income                         |  | $                                                          | 63,649 |                |  |           | 124,821,087 |             |  | $              | .51 |           |  | $ | 56,812 |  |  |  | 124,708,668 |  |  | $ | .46 | 
|Effect of dilutive securities - |                                    |  |                                                            |        |                |  |           |             |             |  |                |     |           |  |   |        |  |  |  |             |  |  |   |    
|                                | Stock Incentive
Plan options       |  |                                                            |       |                |  |           | 2,377,360   |             |  |                |    |           |  |   |       |  |  |  | 425,256     |  |  |   |    | 
|                                |                                    |  |                                                            |        |                |  |           |             |             |  |                |     |           |  |   |        |  |  |  |             |  |  |   |    
|Diluted:                        |                                    |  |                                                            |        |                |  |           |             |             |  |                |     |           |  |   |        |  |  |  |             |  |  |   |    
|                                | Net income and
assumed conversions |  | $                                                          | 63,649 |                |  |           | 127,198,447 |             |  | $              | .50 |           |  | $ | 56,812 |  |  |  | 125,133,924 |  |  | $ | .45 | 
|                                |                                    |  |                                                            |        |                |  |           |             |             |  |                |     |           |  |   |        |  |  |  |             |  |  |   |    

|                                |                                    |  |                                                            |         |                |  |           |             |             |  |                |      |           |  |   |         |  |  |  |             |  |  |   |      | 
|------------------------------- | ---------------------------------- |  | ---------------------------------------------------------- | ------- | -------------- |  | --------- | ----------- | ----------- |  | -------------- | ---- | --------- |  | - | ------- |  |  |  | ----------- |  |  | - | ---- | 
|                                |                                    |  | Nine Months Ended September 30,                           
|                                |                                    |  |                                                           
|                                |                                    |  | 2001                                                       |         | 2000          
|                                |                                    |  |                                                            |         |               
|                                |                                    |  | Income                                                     |         | Average Shares |  | Per Share |             | Income      |  | Average Shares |      | Per Share
|                                |                                    |  | (Numerator)                                                |         | (Denominator)  |  | Amount    |             | (Numerator) |  | (Denominator)  |      | Amount   
|                                |                                    |  |                                                            |         |                |  |           |             |             |  |                |      |          
|                                |                                    |  | (in thousands, except number of shares and per share data)
|Basic:                          |                                    |  |                                                            |         |                |  |           |             |             |  |                |      |           |  |   |         |  |  |  |             |  |  |   |     
|                                | Net income                         |  | $                                                          | 191,377 |                |  |           | 124,745,613 |             |  | $              | 1.53 |           |  | $ | 160,225 |  |  |  | 124,665,611 |  |  | $ | 1.29 | 
|Effect of dilutive securities - |                                    |  |                                                            |         |                |  |           |             |             |  |                |      |           |  |   |         |  |  |  |             |  |  |   |     
|                                | Stock Incentive
Plan options       |  |                                                            |        |                |  |           | 1,976,730   |             |  |                |     |           |  |   |        |  |  |  | 263,227     |  |  |   |     | 
|                                |                                    |  |                                                            |         |                |  |           |             |             |  |                |      |           |  |   |         |  |  |  |             |  |  |   |     
|Diluted:                        |                                    |  |                                                            |         |                |  |           |             |             |  |                |      |           |  |   |         |  |  |  |             |  |  |   |     
|                                | Net income and
assumed conversions |  | $                                                          | 191,377 |                |  |           | 126,722,343 |             |  | $              | 1.51 |           |  | $ | 160,225 |  |  |  | 124,928,838 |  |  | $ | 1.28 | 
|                                |                                    |  |                                                            |         |                |  |           |             |             |  |                |      |           |  |   |         |  |  |  |             |  |  |   |     



|4. |  | Impaired Loans
|-- |  | --------------

The following table summarizes impaired loan information as of and for the
nine months ended September 30, 2001 and 2000 and as of and for the year ended
December 31, 2000:

|                                                                                                             |  |                    |         |                   |  |                    |         |  |  |   |        | 
|------------------------------------------------------------------------------------------------------------ |  | ------------------ | ------- | ----------------- |  | ------------------ | ------- |  |  | - | ------ | 
|                                                                                                             |  | September 30, 2001 |         | December 31, 2000 |  | September 30, 2000
|                                                                                                             |  |                    |         |                   |  |                   
|                                                                                                             |  | (in thousands)    
|Impaired
          loans with related allowance for credit 
          losses calculated under SFAS No. 114   |  | $                  | 101,049 |                   |  | $                  | 77,518  |  |  | $ | 68,415 | 
|Impaired
          loans with no related allowance for credit
          losses calculated under SFAS No. 114 |  |                    | 11,133  |                   |  |                    | 35,358  |  |  |   | 13,004 | 
|                                                                                                             |  |                    |         |                   |  |                    |         |  |  |   |        | 
|Impaired loans                                                                                               |  | $                  | 112,182 |                   |  | $                  | 112,876 |  |  | $ | 81,419 | 
|                                                                                                             |  |                    |         |                   |  |                    |         |  |  |   |        | 
|Total allowance for credit losses on impaired loans                                                          |  | $                  | 25,772  |                   |  | $                  | 14,702  |  |  | $ | 14,744 | 
|Average impaired loans                                                                                       |  |                    | 123,718 |                   |  |                    | 93,572  |  |  |   | 88,742 | 
|Interest income recognized on impaired loans                                                                 |  |                    | 1,535   |                   |  |                    | 5,099   |  |  |   | 2,986  | 

We consider loans to be impaired when it is probable that we will be
unable to collect all amounts due according to the contractual terms of the
loan agreement, including scheduled interest payments. For a loan that has
been restructured, the contractual terms of the loan agreement refer to the
terms of the original loan agreement. Not all impaired loans are necessarily
placed on nonaccrual status; for example, restructured loans performing under
restructured terms beyond a specific period may be classified as accruing, but
may still be deemed impaired. Impaired loans without a related allowance for
credit losses are generally collateralized by assets with fair values in excess
of the recorded investment in the loans. We generally apply interest payments
on impaired loans to reduce the outstanding principal amount of such loans.

8



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##### Table of Contents



BancWest Corporation and
Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)



|5. |  | Merger with BancWest Corporation and Related Matters
|-- |  | ----------------------------------------------------

On November 1, 1998, we consummated the merger (the BancWest Merger) of
the former BancWest Corporation, parent company of Bank of the West, with and
into First Hawaiian, Inc. (FHI). FHI, the surviving corporation in the
BancWest Merger, changed its name to BancWest Corporation on November 1, 1998.

We recorded pre-tax restructuring, BancWest Merger-related and other
nonrecurring costs totaling $25.5 million in 1998. In connection with
recording these costs, we recorded a liability of $11.3 million in 1998, of
which $2.5 million remained accrued as of December 31, 2000. During the first
nine months of 2001, we reduced this liability by $1.4 million related to
excess leased commercial properties. As of September 30, 2001, $1.1 million
related to excess leased commercial properties remained accrued, which will be
fully amortized by December 2002.



|6. |  | Acquisitions
|-- |  | ------------

In the first quarter of 2001, we acquired 30 branches in Nevada and New
Mexico. These branches were divested by First Security Corporation in
connection with its merger with Wells Fargo & Company. We incurred a total of
$5.2 million in integration costs related to these branch acquisitions during
and since the fourth quarter of 2000. We recorded $3.9 million of that amount
in the first quarter of 2001.

On May 31, 2001, we signed a definitive agreement to acquire Union Bank of
Californias loan and deposit accounts in Guam and Saipan. We will assume
branch deposits (approximately $200 million) and buy various loans from the
branches. We expect to complete that acquisition in the fourth quarter of
2001.



|7. |  | Operating Segments
|-- |  | ------------------

As of September 30, 2001, we had two reportable operating segments: Bank
of the West and First Hawaiian. The Bank of the West segment operates
primarily on the mainland United States. The First Hawaiian segment operates
primarily in the State of Hawaii.

The financial results of our operating segments are presented on an
accrual basis. There are no significant differences between the accounting
policies of the segments as compared to the Companys consolidated financial
statements. We evaluate the performance of these segments and allocate
resources to them based on net interest income and net income. There are no
material intersegment revenues.

The tables below present information about our operating segments as of or
for the three and nine months ended September 30, 2001 and 2000, respectively:

|                    |  |                                  |        |          |  |       |       |       |  |             |       |              |  |   |        |   |  |   |        | 
|------------------- |  | -------------------------------- | ------ | -------- |  | ----- | ----- | ----- |  | ----------- | ----- | ------------ |  | - | ------ | - |  | - | ------ | 
|                    |  | Three Months Ended September 30,
|                    |  |                                 
|                    |  | Bank of                          |        | First    |  |       |       |       |  | Reconciling |       | Consolidated
|                    |  | the West                         |        | Hawaiian |  | Other |       | Items |  | Totals     
|                    |  |                                  |        |          |  |       |       |       |  |            
|                    |  | (in millions)                   
|2001                |  |                                  |        |          |  |       |       |       |  |             |       |              |  |   |        |   |  |   |        | 
|Net interest income |  | $                                | 130    |          |  | $     | 85    |       |  | $           | (4    | )            |  | $ |       |   |  | $ | 211    | 
|Net income          |  |                                  | 35     |          |  |       | 30    |       |  |             | (1    | )            |  |   |       |   |  |   | 64     | 
|Segment assets      |  |                                  | 12,839 |          |  |       | 7,462 |       |  |             | 3,455 |              |  |   | (4,002 | ) |  |   | 19,754 | 
|2000                |  |                                  |        |          |  |       |       |       |  |             |       |              |  |   |        |   |  |   |        | 
|Net interest income |  | $                                | 107    |          |  | $     | 84    |       |  | $           | (1    | )            |  | $ |       |   |  | $ | 190    | 
|Net income          |  |                                  | 29     |          |  |       | 29    |       |  |             | (1    | )            |  |   |       |   |  |   | 57     | 
|Segment assets      |  |                                  | 10,643 |          |  |       | 7,301 |       |  |             | 2,836 |              |  |   | (2,807 | ) |  |   | 17,973 | 

|                    |  |                                 |        |          |  |       |       |       |  |             |       |              |  |   |        |   |  |   |        | 
|------------------- |  | ------------------------------- | ------ | -------- |  | ----- | ----- | ----- |  | ----------- | ----- | ------------ |  | - | ------ | - |  | - | ------ | 
|                    |  | Nine Months Ended September 30,
|                    |  |                                
|                    |  | Bank of                         |        | First    |  |       |       |       |  | Reconciling |       | Consolidated
|                    |  | the West                        |        | Hawaiian |  | Other |       | Items |  | Totals     
|                    |  |                                 |        |          |  |       |       |       |  |            
|                    |  | (in millions)                  
|2001                |  |                                 |        |          |  |       |       |       |  |             |       |              |  |   |        |   |  |   |        | 
|Net interest income |  | $                               | 362    |          |  | $     | 248   |       |  | $           | (11   | )            |  | $ |       |   |  | $ | 599    | 
|Net income          |  |                                 | 104    |          |  |       | 94    |       |  |             | (7    | )            |  |   |       |   |  |   | 191    | 
|Segment assets      |  |                                 | 12,839 |          |  |       | 7,462 |       |  |             | 3,455 |              |  |   | (4,002 | ) |  |   | 19,754 | 
|2000                |  |                                 |        |          |  |       |       |       |  |             |       |              |  |   |        |   |  |   |        | 
|Net interest income |  | $                               | 314    |          |  | $     | 246   |       |  | $           | (4    | )            |  | $ |       |   |  | $ | 556    | 
|Net income          |  |                                 | 82     |          |  |       | 83    |       |  |             | (5    | )            |  |   |       |   |  |   | 160    | 
|Segment assets      |  |                                 | 10,643 |          |  |       | 7,301 |       |  |             | 2,836 |              |  |   | (2,807 | ) |  |   | 17,973 | 

The reconciling items in the tables above are primarily intercompany eliminations.

9



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##### Table of Contents






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

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.
BancWests forward-looking statements (such as those concerning its 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 political, economic and market conditions; (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 financial services
business; (7) the impact of the September 11th attacks, subsequent economic
repercussions and military actions on the economy in BancWests market,
particularly on tourism in Hawaii, Guam and Saipan; (8) action by regulators
that may result in the delay or denial of approvals of pending acquisitions or
impose burdensome conditions in connection with such approvals; (9) customer or
employee attrition following commencement of pending transactions; (10) delay
or difficulty in completing branch and account conversions on Guam and Saipan;
(11) extensive federal and state regulation of our business, including the
effect of current and pending legislation and regulations; (12) whether
expected revenue enhancements and cost savings are realized within expected
time frames; (13) whether Bank of the West is successful in retaining and
further developing loan, deposit, customer and employee relationships relating
to its recently acquired Nevada and New Mexico branches; (14) 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; (15)
our reliance on third parties to provide certain critical services, including
data processing; (16) the proposal or adoption of changes in accounting
standards by the Financial Accounting Standards Board, the Securities and
Exchange Commission or other standard setting bodies; (17) technological
changes; (18) other risks and uncertainties discussed in this document or
detailed from time to time in other Securities and Exchange Commission filings
that we make, including our 2000 Annual Report on Form 10-K; and (19)
managements ability to manage risks that result from these and other factors.

BancWests forward-looking statements are based on managements current views
about future events. These 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.

GAAP, OPERATING AND CASH EARNINGS

We analyze our performance on a net income basis determined in accordance with
generally accepted accounting principles (GAAP), as well as on an operating
basis before merger-related, integration and other nonrecurring costs and/or
the effects of the amortization of intangible assets. We refer to the results
as operating and cash earnings, respectively. Operating earnings, cash
earnings and operating cash earnings (the combination of the effect of
adjustments for both cash and operating results), as well as information
calculated from them and related discussions, are presented as supplementary
information in this analysis to enhance the readers understanding of, and
highlight trends in, our core financial results excluding the effects of
discrete business acquisitions and other transactions. We include these
additional disclosures because this information is both relevant and useful in
understanding the performance of the Company as management views it. Operating
earnings and cash earnings should not be viewed as a substitute for net income
and earnings per share, among other gauges of performance, as determined in
accordance with GAAP. Merger-related, integration and other nonrecurring
costs, amortization of intangible assets and other items excluded from net
income to derive operating and cash earnings may be significant and may not be
comparable to those of other companies.

BNP PARIBAS ACQUISITION AGREEMENT

BancWest Corporation, BNP Paribas, and Chauchat L.L.C., a Delaware limited
liability company and wholly-owned subsidiary of BNP Paribas, entered into a
definitive Agreement and Plan of Merger, dated as of May 8, 2001, and on July
19, 2001 amended and restated that agreement. Pursuant to the merger agreement,
Chauchat L.L.C. will merge with and into BancWest, with BancWest as the
surviving corporation, and BancWest will become a wholly-owned subsidiary of
BNP Paribas. As a result of the merger, (i) each issued and outstanding share
of BancWest common stock (other than shares owned by BancWest or any
wholly-owned subsidiary of BancWest will be converted into the right to receive
$35.00 in cash and (ii) each issued and outstanding share of BancWest Class A
common stock will remain outstanding. During the third quarter of 2001,
stockholders of BancWest Corporation voted overwhelmingly to accept the merger
agreement. Consummation of the merger is subject to receipt of requisite
regulatory approval from the Federal Reserve Board and completion of a 15-day
waiting period thereafter. The amended merger agreement and a related press
release were filed with a Report on Form 8-K on July 20, 2001. Among other
things, the amended merger agreement permits BancWest to pay a prorata dividend
to holders of BancWest common stock under specified circumstances.

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BancWest Corporation and
Subsidiaries

CONSOLIDATED FINANCIAL HIGHLIGHTS(Unaudited)

|                                                                                                    |  |                                               |        |                                 |  |      |        |      |  |   |         |   |  |   |         |  
|--------------------------------------------------------------------------------------------------- |  | --------------------------------------------- | ------ | ------------------------------- |  | ---- | ------ | ---- |  | - | ------- | - |  | - | ------- | -
|                                                                                                    |  | Three Months Ended September 30,              |        | Nine Months Ended September 30,
|                                                                                                    |  |                                               |        |                                
|                                                                                                    |  | 2001                                          |        | 2000                            |  | 2001 |        | 2000
|                                                                                                    |  |                                               |        |                                 |  |      |        |     
|                                                                                                    |  | (dollars in thousands, except per share data)
|Earnings and Dividends:                                                                             |  |                                               |        |                                 |  |      |        |      |  |   |         |   |  |   |         |  
|Net income                                                                                          |  | $                                             | 63,649 |                                 |  | $    | 56,812 |      |  | $ | 191,337 |   |  | $ | 160,225 |  
|Cash dividends                                                                                      |  |                                               | 23,716 |                                 |  |      | 21,202 |      |  |   | 71,110  |   |  |   | 63,582  |  
|Per Share Data:                                                                                     |  |                                               |        |                                 |  |      |        |      |  |   |         |   |  |   |         |  
|Diluted earnings                                                                                    |  | $                                             | .50    |                                 |  | $    | .45    |      |  | $ | 1.51    |   |  | $ | 1.28    |  
|Cash dividends                                                                                      |  |                                               | .19    |                                 |  |      | .17    |      |  |   | .57     |   |  |   | .51     |  
|Book value (at September 30)                                                                        |  |                                               |        |                                 |  |      |        |      |  |   | 17.14   |   |  |   | 15.61   |  
|Market price (NYSE close at September 30)                                                           |  |                                               |        |                                 |  |      |        |      |  |   | 34.93   |   |  |   | 19.44   |  
|Selected Financial Ratios:                                                                          |  |                                               |        |                                 |  |      |        |      |  |   |         |   |  |   |         |  
|Return on average total assets (ROA)                                                                |  |                                               |        |                                 |  |      |        |      |  |   | 1.33    | % |  |   | 1.23    | %
|Return on average stockholders equity (ROE)                                                        |  |                                               |        |                                 |  |      |        |      |  |   | 12.37   |   |  |   | 11.37   |  
|Net interest margin (taxable-equivalent basis)                                                      |  |                                               |        |                                 |  |      |        |      |  |   | 4.69    |   |  |   | 4.77    |  
|Allowance
          for credit losses to total loans
          and leases (at September 30)         |  |                                               |        |                                 |  |      |        |      |  |   | 1.27    |   |  |   | 1.26    |  
|Nonperforming assets to total assets (at September 30)                                              |  |                                               |        |                                 |  |      |        |      |  |   | .64     |   |  |   | .67     |  
|Allowance
          for credit losses to nonperforming
          loans and leases (at September 30) |  |                                               |        |                                 |  |      |        |      |  |   | 1.81x   |   |  |   | 1.93x   |  
|Non-GAAP Information(1)                                                                             |  |                                               |        |                                 |  |      |        |      |  |   |         |   |  |   |         |  
|Operating earnings(2)                                                                               |  | $                                             | 63,649 |                                 |  | $    | 56,812 |      |  | $ | 193,679 |   |  | $ | 160,225 |  
|Cash earnings(3)                                                                                    |  |                                               | 72,969 |                                 |  |      | 64,985 |      |  |   | 218,918 |   |  |   | 184,766 |  
|Operating cash earnings(2),(3)                                                                      |  |                                               | 72,969 |                                 |  |      | 64,985 |      |  |   | 221,260 |   |  |   | 184,766 |  
|Per Share Data (Diluted):                                                                           |  |                                               |        |                                 |  |      |        |      |  |   |         |   |  |   |         |  
|Operating earnings(2)                                                                               |  | $                                             | .50    |                                 |  | $    | .45    |      |  | $ | 1.53    |   |  | $ | 1.28    |  
|Cash earnings(3)                                                                                    |  |                                               | .58    |                                 |  |      | .52    |      |  |   | 1.73    |   |  |   | 1.48    |  
|Operating cash earnings(2),(3)                                                                      |  |                                               | .58    |                                 |  |      | .52    |      |  |   | 1.75    |   |  |   | 1.48    |  
|Selected Financial Ratios:                                                                          |  |                                               |        |                                 |  |      |        |      |  |   |         |   |  |   |         |  
|Operating return on average total assets (ROA)(2)                                                   |  |                                               |        |                                 |  |      |        |      |  |   | 1.35    | % |  |   | 1.23    | %
|Return on average tangible assets(4)                                                                |  |                                               |        |                                 |  |      |        |      |  |   | 1.60    |   |  |   | 1.48    |  
|Operating return on average stockholders equity (ROE)(2)                                           |  |                                               |        |                                 |  |      |        |      |  |   | 12.53   |   |  |   | 11.37   |  
|Return on average tangible stockholders equity(4)                                                  |  |                                               |        |                                 |  |      |        |      |  |   | 22.26   |   |  |   | 20.48   |  



---

|(1) |  | Information presented was not calculated under generally accepted accounting principles (GAAP). Information is
disclosed to improve readers understanding of how management views the results of our operation.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) |  | Excluding after-tax restructuring, integration and other nonrecurring costs of $2,342,000 in the first quarter of 2001.                                                                                           
|(3) |  | Excluding amortization of goodwill and core deposit intangible.                                                                                                                                                   
|(4) |  | Defined as operating cash earnings as a percentage of average total assets or average stockholders equity minus
average goodwill and core deposit intangible.                                                    

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NET INCOME

The following table compares net income, operating earnings, cash earnings and
operating cash earnings for the three and nine months ended September 30, 2001
to the same period in 2000:

|                                 |                  |                                |  |                |         |      |  |          |         |  |  |  |      |  
|-------------------------------- | ---------------- | ------------------------------ |  | -------------- | ------- | ---- |  | -------- | ------- |  |  |  | ---- | -
|                                 |                  |                                |  | 2001           |         | 2000 |  | % Change
|                                 |                  |                                |  |                |         |      |  |         
|                                 |                  |                                |  | (in thousands) |         |      |  |         
|Three months ended September 30, |                  |                                |  |                |         |      |  |          |         |  |  | 
|                                 |                  | Net income                     |  | $              | 63,649  |      |  | $        | 56,812  |  |  |  | 12.0 | %
|                                 |                  |                                |  |                |         |      |  |          |         |  |  |  |     
|                                 | Non-GAAP income: |                                |  |                |         |      |  |          |         |  |  |  |     
|                                 |                  | Cash earnings(1)               |  |                | 72,969  |      |  |          | 64,985  |  |  |  | 12.3 |  
|Nine months ended September 30,  |                  |                                |  |                |         |      |  |          |         |  |  | 
|                                 |                  | Net income                     |  | $              | 191,337 | (3)  |  | $        | 160,225 |  |  |  | 19.4 | %
|                                 |                  |                                |  |                |         |      |  |          |         |  |  |  |     
|                                 | Non-GAAP income: |                                |  |                |         |      |  |          |         |  |  |  |     
|                                 |                  | Operating earnings(2)          |  |                | 193,679 | (3)  |  |          | 160,225 |  |  |  | 20.9 |  
|                                 |                  | Cash earnings(1)               |  |                | 218,918 | (3)  |  |          | 184,766 |  |  |  | 18.5 |  
|                                 |                  | Operating cash earnings(1),(2) |  |                | 221,260 | (3)  |  |          | 184,766 |  |  |  | 19.8 |  



---

|(1) |  | Excluding after-tax amortization of goodwill and core deposit intangibles.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) |  | Excluding after-tax integration costs of $2.3 million related to the Nevada and New Mexico
branch acquisitions in the first quarter of 2001.                                                                                                                                                                                                                                                                                                                                                                                                           
|(3) |  | Includes $14.9 million after-tax net effect of the Concord security gain, additional
provision for credit losses and other nonrecurring items. Excluding the after-tax net effect
of the gain, additional provision and other nonrecurring items, net
income and cash earnings for
the nine months ended September 30, 2001 were $176.4 million and $204.0 million,
respectively. Operating earnings and operating cash earnings, excluding the net after-tax
effect of the aforementioned items, were $178.8 million and $206.3 million, respectively.

Net income and cash earnings increased for the three months ended September 30,
2001 compared to the same period in 2000, primarily due to higher net interest
income, resulting from higher average earning assets and a lower rate paid on
funding sources. Also, contributing to the increase in our net income and cash
earnings in the third quarter of 2001 over the same period in 2000 was
increased contribution from our Bank of the West operating segment, including
operations from our newly-acquired branches in Nevada and New Mexico. Higher
noninterest income, primarily from increased fee income on deposit accounts and
a gain on the sale of a leveraged lease of approximately $4 million, also
positively affected net income and cash earnings in the quarter.

The increases in net income, operating earnings, cash earnings and operating
cash earnings for the first nine months of 2001 compared to the same period in
2000 were primarily due to a $59.8 million pre-tax gain stemming from the sale
of Concord stock. We received stock of Concord due to Concords acquisition of
Star Systems, Inc. In addition to the Concord security gain, revenue increased
because of higher net interest income, primarily from the growth in loans and
leases in the mainland United States, increased investment securities, a lower
rate paid on funding sources, contribution from 30 newly-acquired branches in
Nevada and New Mexico in 2001 and increased noninterest income. These
increases were partially offset by a $32.8 million (pre-tax) additional
provision for credit losses, a donation to a private charitable foundation of
$5 million (pre-tax) and other nonrecurring items totaling $398,000 (pre-tax).
Considered together, the after-tax net effect of the Concord security gain, the
additional provision for credit losses, the charitable contribution and the
other nonrecurring items added $14.9 million to our net income, operating
earnings, cash earnings and operating cash earnings for the nine months ended
September 30, 2001. Also partially offsetting the increase in revenue were
higher noninterest expenses primarily related to the expansion of our loan and
deposit base.

12



---



##### Table of Contents



NET INCOME, Continued

The following table shows diluted earnings, operating earnings, cash earnings
and operating cash earnings per share for the three and nine months ended
September 30, 2001 compared to the same periods in 2000. All per share data
have been calculated to include both common and Class A common shares.

|                                 |                              |                                        |  |      |      |      |  |          |      |  |  |  |      |  
|-------------------------------- | ---------------------------- | -------------------------------------- |  | ---- | ---- | ---- |  | -------- | ---- |  |  |  | ---- | -
|                                 |                              |                                        |  | 2001 |      | 2000 |  | % Change
|                                 |                              |                                        |  |      |      |      |  |         
|Three months ended September 30, |                              |                                        |  |      |      |      |  |          |      |  |  | 
|                                 |                              | Diluted earnings                       |  | $    | .50  |      |  | $        | .45  |  |  |  | 11.1 | %
|                                 |                              |                                        |  |      |      |      |  |          |      |  |  |  |     
|                                 | Non-GAAP earnings per share: |                                        |  |      |      |      |  |          |      |  |  |  |     
|                                 |                              | Diluted cash earnings(1)               |  |      | .58  |      |  |          | .52  |  |  |  | 11.5 |  
|Nine months ended September 30,  |                              |                                        |  |      |      |      |  |          |      |  |  | 
|                                 |                              | Diluted earnings                       |  | $    | 1.51 | (2)  |  | $        | 1.28 |  |  |  | 18.0 | %
|                                 |                              |                                        |  |      |      |      |  |          |      |  |  |  |     
|                                 | Non-GAAP earnings per share: |                                        |  |      |      |      |  |          |      |  |  |  |     
|                                 |                              | Diluted operating earnings(3)          |  |      | 1.53 | (2)  |  |          | 1.28 |  |  |  | 19.5 |  
|                                 |                              | Diluted cash earnings(1)               |  |      | 1.73 | (2)  |  |          | 1.48 |  |  |  | 16.9 |  
|                                 |                              | Diluted operating cash earnings(1),(3) |  |      | 1.75 | (2)  |  |          | 1.48 |  |  |  | 18.2 |  



---

|(1) |  | Excluding after-tax amortization of goodwill and core deposit intangibles.                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) |  | Includes $14.9 million after-tax net effect of the Concord security gain, additional provision
for credit losses and other nonrecurring items. Excluding the after-tax net effect of the
gain, additional provision and other nonrecurring items, the first nine months of 2001
earnings and cash earnings per share were $1.39 and $1.61, respectively. In the first nine
months of 2001, operating earnings and operating cash earnings per share were $1.41 and $1.63,
respectively, excluding the aforementioned items.
|(3) |  | Excluding after-tax integration costs of $2.3 million related to the Nevada and New Mexico
branch acquisitions in the first quarter of 2001.                                                                                                                                                                                                                                                                                                                                                                               

13



---



##### Table of Contents



NET INCOME, Continued

The table below shows the return on average total assets, the return on average
tangible assets, the return on average stockholders equity and the return on
average tangible stockholders equity for the first nine months of 2001
compared to the same period in 2000. The return on average tangible assets is
defined as operating cash earnings as a percentage of average total tangible
assets. The return on average tangible stockholders equity is defined as
operating cash earnings as a percentage of average stockholders equity minus
average goodwill and core deposit intangibles.

|                                                    |  |      |       |      |  |          |       |   |  |  |      |  
|--------------------------------------------------- |  | ---- | ----- | ---- |  | -------- | ----- | - |  |  | ---- | -
|                                                    |  | 2001 |       | 2000 |  | % Change
|                                                    |  |      |       |      |  |         
|Return on average total assets                      |  |      | 1.33  | %    |  |          | 1.23  | % |  |  | 8.1  | %
|Return on average stockholders equity              |  |      | 12.37 |      |  |          | 11.37 |   |  |  | 8.8  |  
|Non-GAAP returns:                                   |  |      |       |      |  |          |       |   |  |  |      |  
|Operating return on average total assets(1)         |  |      | 1.35  |      |  |          | 1.23  |   |  |  | 9.8  |  
|Return on average tangible assets(1)                |  |      | 1.60  |      |  |          | 1.48  |   |  |  | 8.1  |  
|Operating return on average stockholders equity(1) |  |      | 12.53 |      |  |          | 11.37 |   |  |  | 10.2 |  
|Return on average tangible stockholders equity(1)  |  |      | 22.26 |      |  |          | 20.48 |   |  |  | 8.7  |  



---

|(1) |  | Ratios are computed excluding after-tax integration costs related to the Nevada and New Mexico branch acquisitions in the first quarter of 2001.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------

The increases in the above returns were a result of the higher profitability of
our earning assets and stockholders equity, with revenues increasing at a
faster pace than expenses for the first nine months of 2001 compared to the
same period in 2000.

NET INTEREST INCOME

The following table compares net interest income on a taxable-equivalent basis
for the three and nine months ended September 30, 2001 to the same periods in
2000:

|                                 |                     |  |                |         |      |  |          |         |  |  |  |      |  
|-------------------------------- | ------------------- |  | -------------- | ------- | ---- |  | -------- | ------- |  |  |  | ---- | -
|                                 |                     |  | 2001           |         | 2000 |  | % Change
|                                 |                     |  |                |         |      |  |         
|                                 |                     |  | (in thousands) |         |      |  |         
|Three months ended September 30, |                     |  |                |         |      |  |          |         |  |  |  |     
|                                 | Net interest income |  | $              | 211,490 |      |  | $        | 189,920 |  |  |  | 11.4 | %
|Nine months ended September 30,  |                     |  |                |         |      |  |          |         |  |  |  |     
|                                 | Net interest income |  | $              | 599,704 |      |  | $        | 556,189 |  |  |  | 7.8  | %

The increase in net interest income for the three months ended September 30,
2001 over the same period in 2000 was primarily due to an increase in average
earning assets of 8.5%, or $1.4 billion, and a 95-basis-point decrease (1%
equals 100 basis points) in the rate paid on funding sources, partially offset
by an 84-basis-point decline in the yield on average earning assets. In
addition, lower cost of funds resulted from higher average noninterest-bearing
deposits, which increased by $435.8 million, or 15.8%, in the third quarter of
2001 over the same period in 2000.

The increase in net interest income for the nine months ended September 30,
2001 over the same period in 2000 was primarily due to an increase in average
earning assets of 9.8%, or $1.5 billion, and a 34-basis-point decline in the
rate paid on funding sources, partially offset by a 42-basis-point decline in
the yield on average earning assets. The lower cost of funds is also a result
of higher average noninterest-bearing deposits, which increased by $420.1
million, or 15.7%, in the first nine months of 2001 over the same period in
2000.

14



---



##### Table of Contents



NET INTEREST INCOME, Continued

The following table compares the net interest margin for the three and nine months
ended September 30, 2001 to the same periods in 2000:

|                                 |                                 |  |      |      |      |  |                |      |   |  |        |     |  
|-------------------------------- | ------------------------------- |  | ---- | ---- | ---- |  | -------------- | ---- | - |  | ------ | --- | -
|                                 |                                 |  |      |      |      |  |                |      |   |  | Change
|                                 |                                 |  | 2001 |      | 2000 |  | (Basis Points)
|                                 |                                 |  |      |      |      |  |               
|Three months ended September 30, |                                 |  |      |      |      |  |                |      |   |  |        |    
|                                 | Yield on average earning assets |  |      | 7.57 | %    |  |                | 8.41 | % |  |        | (84 | )
|                                 | Rate paid on funding sources    |  |      | 2.74 |      |  |                | 3.69 |   |  |        | (95 | )
|                                 |                                 |  |      |      |      |  |                |      |   |  |        |    
|                                 | Net interest margin             |  |      | 4.83 |      |  |                | 4.72 |   |  |        | 11  |  
|Nine months ended September 30,  |                                 |  |      |      |      |  |                |      |   |  |        |    
|                                 | Yield on average earning assets |  |      | 7.85 | %    |  |                | 8.27 | % |  |        | (42 | )
|                                 | Rate paid on funding sources    |  |      | 3.16 |      |  |                | 3.50 |   |  |        | (34 | )
|                                 |                                 |  |      |      |      |  |                |      |   |  |        |    
|                                 | Net interest margin             |  |      | 4.69 |      |  |                | 4.77 |   |  |        | (8  | )

In the three-month period ended September 30, 2001, as compared to the same
period in 2000, the net interest margin increased by 11 basis points, primarily
due to the decline in the rate paid on funding sources of 95 basis points,
partially offset by a decrease in the yield on average earning assets of 84
basis points. The effects of the continuing reduction of key interest rates by
the Federal Reserve are primarily responsible for the decline in yields and
rates.

The decrease in the net interest margin in the first nine months of 2001 as
compared to the same period in 2000 is primarily due to the 42-basis-point
decrease in the yield on average earning assets, reflecting a rapidly changing
interest rate environment over the last 12 months. The Federal Reserves
benchmark Federal Funds rate has changed eleven times in the period from
January 2000 through September 2001, with eight decreases in the first nine
months of 2001. For further discussions of the impact that the changing
interest environment has had on the rate paid on deposits, see page 20. The
decrease in the yield on average earning assets of 42 basis points in the first
nine months of 2001, as compared to the same period in 2000, was partially
offset by the 34-basis-point decrease in the rate paid on funding sources.

The increase in average noninterest-bearing deposits in the three and nine
months ended September 30, 2001 as compared to the same period in 2000, also
positively impacted the net interest margin, by lowering our cost of funds.
The percentage of average noninterest-bearing deposits to total average
deposits increased to 22.0% and 21.5% over 20.5% and 20.3%, for the three and
nine months ended September 30, 2001 and 2000, respectively.

The following table compares average earning assets, average loans and leases
and average interest-bearing deposits and liabilities for the three and nine
months ended September 30, 2001 to the same periods in 2000:

|                                 |                                                                        |  |                |            |      |  |          |            |  |  |  |      |  
|-------------------------------- | ---------------------------------------------------------------------- |  | -------------- | ---------- | ---- |  | -------- | ---------- |  |  |  | ---- | -
|                                 |                                                                        |  | 2001           |            | 2000 |  | % Change
|                                 |                                                                        |  |                |            |      |  |         
|                                 |                                                                        |  | (in thousands) |            |      |  |         
|Three months ended September 30, |                                                                        |  |                |            |      |  |          |            |  |  |  |     
|                                 | Average earning assets                                                 |  | $              | 17,367,337 |      |  | $        | 16,002,309 |  |  |  | 8.5  | %
|                                 | Average loans and leases                                               |  |                | 14,716,138 |      |  |          | 13,510,874 |  |  |  | 8.9  |  
|                                 | Average
          interest-bearing
          deposits and liabilities  |  |                | 13,334,194 |      |  |          | 12,435,081 |  |  |  | 7.2  |  
|Nine months ended September 30,  |                                                                        |  |                |            |      |  |          |            |  |  |  |     
|                                 | Average earning assets                                                 |  | $              | 17,090,717 |      |  | $        | 15,566,504 |  |  |  | 9.8  | %
|                                 | Average loans and leases                                               |  |                | 14,423,028 |      |  |          | 13,109,103 |  |  |  | 10.0 |  
|                                 | Average
          interest-bearing 
          deposits and liabilities |  |                | 13,206,102 |      |  |          | 12,164,305 |  |  |  | 8.6  |  

The increase in average earning assets was primarily due to increases in
average loans and leases. The increase in average loans and leases was
primarily due to the growth of our Bank of the West operating segments loan
and lease portfolio, with significant increases in consumer loan and lease
financing volumes. Also contributing to the increase in average loans and
leases was the addition of the 30 branches in Nevada and New Mexico in the
first quarter of 2001.

The increase in average interest-bearing deposits and liabilities was primarily
due to an increase in interest-bearing deposits and long-term debt and capital
securities. Expansion of our customer deposit base, primarily from our Bank of
the West operating segment, including the branches acquired in Nevada and New
Mexico, contributed to the increase.

15



---



##### Table of Contents



The following table sets forth consolidated average balance sheets, an analysis
of interest income/expense and average 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 2001 and
2000) to make them comparable with taxable items before any income taxes are
applied.

|                |                                                                        |                      |   |                                  |            |                                 |   |          |         |         |  |         |      |         |   |            |            |          |   |         |         |         |  |         |      |         |   |            |            |  |   |         |           |  |  |      |      |          |   |            |            |  |   |         |         |  |  |      |      | 
|--------------- | ---------------------------------------------------------------------- | -------------------- | - | -------------------------------- | ---------- | ------------------------------- | - | -------- | ------- | ------- |  | ------- | ---- | ------- | - | ---------- | ---------- | -------- | - | ------- | ------- | ------- |  | ------- | ---- | ------- | - | ---------- | ---------- |  | - | ------- | --------- |  |  | ---- | ---- | -------- | - | ---------- | ---------- |  | - | ------- | ------- |  |  | ---- | ---- | 
|                |                                                                        |                      |   | Three Months Ended September 30, |            | Nine Months Ended September 30,
|                |                                                                        |                      |   |                                  |            |                                
|                |                                                                        |                      |   | 2001                             |            | 2000                            |   | 2001     |         | 2000   
|                |                                                                        |                      |   |                                  |            |                                 |   |          |         |        
|                |                                                                        |                      |   |                                  |            |                                 |   | Interest |         |         |  |         |      |         |   |            |            | Interest |   |         |         |         |  |         |      |         |   | Interest   |            |  |   |         |           |  |  |      |      | Interest |   |            |            | 
|                |                                                                        |                      |   | Average                          |            | Income/                         |   | Yield/   |         | Average |  | Income/ |      | Yield/  |   | Average    |            | Income/  |   | Yield/  |         | Average |  | Income/ |      | Yield/ 
|                |                                                                        |                      |   | Balance                          |            | Expense                         |   | Rate(1)  |         | Balance |  | Expense |      | Rate(1) |   | Balance    |            | Expense  |   | Rate(1) |         | Balance |  | Expense |      | Rate(1)
|                |                                                                        |                      |   |                                  |            |                                 |   |          |         |         |  |         |      |         |   |            |            |          |   |         |         |         |  |         |      |        
|                |                                                                        |                      |   | (dollars in thousands)          
|ASSETS          |                                                                        |                      |   |                                  |            |                                 |   |          |         |         |  |         |      |         |   |            |            |          |   |         |         |         |  |         |      |         |   |            |            |  |   |         |           |  |  |      |      |          |   |            |            |  |   |         |         |  |  |     
|Earning assets: |                                                                        |                      |   |                                  |            |                                 |   |          |         |         |  |         |      |         |   |            |            |          |   |         |         |         |  |         |      |         |   |            |            |  |   |         |           |  |  |      |      |          |   |            |            |  |   |         |         |  |  |     
|                | Interest-bearing deposits
in other banks                               |                      | $ | 169,667                          |            |                                 | $ | 1,725    |         |         |  | 4.04    | %    |         | $ | 178,460    |            |          | $ | 3,031   |         |         |  | 6.76    | %    |         | $ | 229,834    |            |  | $ | 8,662   |           |  |  | 5.04 | %    |          | $ | 203,344    |            |  | $ | 9,731   |         |  |  | 6.39 | %   
|                | Federal funds sold and
securities purchased
under agreements to
resell |                      |   | 162,860                          |            |                                 |   | 1,459    |         |         |  | 3.55    |      |         |   | 248,986    |            |          |   | 4,166   |         |         |  | 6.66    |      |         |   | 228,572    |            |  |   | 8,135   |           |  |  | 4.76 |      |          |   | 144,355    |            |  |   | 6,943   |         |  |  | 6.42 |     
|                | Investment securities(2)                                               |                      |   | 2,318,672                        |            |                                 |   | 35,294   |         |         |  | 6.04    |      |         |   | 2,063,989  |            |          |   | 34,444  |         |         |  | 6.64    |      |         |   | 2,209,283  |            |  |   | 102,433 |           |  |  | 6.20 |      |          |   | 2,109,702  |            |  |   | 103,845 |         |  |  | 6.58 |     
|                | Loans and leases(3),(4)                                                |                      |   | 14,716,138                       |            |                                 |   | 292,941  |         |         |  | 7.90    |      |         |   | 13,510,874 |            |          |   | 296,505 |         |         |  | 8.73    |      |         |   | 14,423,028 |            |  |   | 884,753 |           |  |  | 8.20 |      |          |   | 13,109,103 |            |  |   | 843,541 |         |  |  | 8.60 |     
|                |                                                                        |                      |   |                                  |            |                                 |   |          |         |         |  |         |      |         |   |            |            |          |   |         |         |         |  |         |      |         |   |            |            |  |   |         |           |  |  |      |      |          |   |            |            |  |   |         |         |  |  |     
|                |                                                                        | Total earning assets |   |                                  | 17,367,337 |                                 |   |          | 331,419 |         |  |         | 7.57 |         |   |            | 16,002,309 |          |   |         | 338,146 |         |  |         | 8.41 |         |   |            | 17,090,717 |  |   |         | 1,003,983 |  |  |      | 7.85 |          |   |            | 15,566,504 |  |   |         | 964,060 |  |  |      | 8.27 | 
|                |                                                                        |                      |   |                                  |            |                                 |   |          |         |         |  |         |      |         |   |            |            |          |   |         |         |         |  |         |      |         |   |            |            |  |   |         |           |  |  |      |      |          |   |            |            |  |   |         |         |  |  |     
|                | Nonearning assets                                                      |                      |   | 2,133,788                        |            |                                 |   |          |         |         |  |         |      |         |   | 1,810,921  |            |          |   |         |         |         |  |         |      |         |   | 2,133,398  |            |  |   |         |           |  |  |      |      |          |   | 1,826,462  |            |  |   |         |         |  |  |      |     
|                |                                                                        |                      |   |                                  |            |                                 |   |          |         |         |  |         |      |         |   |            |            |          |   |         |         |         |  |         |      |         |   |            |            |  |   |         |           |  |  |      |      |          |   |            |            |  |   |         |         |  |  |     
|                |                                                                        | Total assets         |   | $                                | 19,501,125 |                                 |   |          |         |         |  |         |      |         |   | $          | 17,813,230 |          |   |         |         |         |  |         |      |         |   | $          | 19,224,115 |  |   |         |           |  |  |      |      |          |   |            | 17,392,966 |  |   |         |         |  |  |      |      | 
|                |                                                                        |                      |   |                                  |            |                                 |   |          |         |         |  |         |      |         |   |            |            |          |   |         |         |         |  |         |      |         |   |            |            |  |   |         |           |  |  |      |      |          |   |            |            |  |   |         |         |  |  |     



---

|(1) |  | Annualized.                                                                                                                                                                                                                                     
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) |  | Average debt investment
securities were computed based on historical amortized cost,
excluding the effects of SFAS No. 115 adjustments.                                                                                                         
|(3) |  | Nonaccruing loans and leases have been included in the computations of average loan and lease balances.                                                                                                                                         
|(4) |  | Interest income for loans and leases included loan fees of $9,457 and $28,157 for the three and nine months ended September 30, 2001, respectively, and $8,521 and $24,059
for the three and nine months ended September 30, 2000, respectively.

16



---



##### Table of Contents





|                                           |                                       |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |      |      |      |  
|------------------------------------------ | ------------------------------------- | ------------------------------------------------ | ------------------------------- | --------- | -------------------------------- | ---------- | ------------------------------- | ------ | -------- | ------ | ------- | ---- | ------- | ---- | --------- | ------- | ---------- | ---------- | -------- | ------ | ------- | ------- |  | ---- | ---- | ---- | --------- | --------- | ---------- | ---------- | --- | ------ | ------- | ------- |  | ---- | ---- | ---- | -
|                                           |                                       |                                                  |                                 |           | Three Months Ended September 30, |            | Nine Months Ended September 30,
|                                           |                                       |                                                  |                                 |           |                                  |            |                                
|                                           |                                       |                                                  |                                 |           | 2001                             |            | 2000                            |        | 2001    
|                                           |                                       |                                                  |                                 |           |                                  |            |                                 |        |         
|                                           |                                       |                                                  |                                 |           |                                  |            |                                 |        | Interest |        |         |      |         |      |           |         |            |            | Interest |        |         |         |  |      |      |      |           |           | Interest   |            |     |        |        
|                                           |                                       |                                                  |                                 |           | Average                          |            | Income/                         |        | Yield/   |        | Average |      | Income/ |      | Yield/    |         | Average    |            | Income/  |        | Yield/ 
|                                           |                                       |                                                  |                                 |           | Balance                          |            | Expense                         |        | Rate(1)  |        | Balance |      | Expense |      | Rate(1)   |         | Balance    |            | Expense  |        | Rate(1)
|                                           |                                       |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |        
|                                           |                                       |                                                  |                                 |           | (dollars in thousands)          
|LIABILITIES AND
STOCKHOLDERS EQUITY       |                                       |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |     
|Interest-bearing deposits
and liabilities: |                                       |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |     
|                                           | Deposits:                             |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |      |     
|                                           |                                       | Domestic:                                        |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |      |      |     
|                                           |                                       |                                                  | Interest-bearing demand         |           | $                                | 317,809    |                                 |        | $        | 501    |         |      |         | 0.63 | %         |         | $          | 288,582    |          |        | $       | 773     |  |      |      | 1.07 | %         |           | $          | 314,154    |     |        | $       | 1,638   |  |      |      | 0.70 | %
|                                           |                                       |                                                  | Savings                         |           |                                  | 4,605,005  |                                 |        |          | 21,505 |         |      |         | 1.85 |           |         |            | 4,085,986  |          |        |         | 25,875  |  |      |      | 2.52 |           |           |            | 4,496,959  |     |        |         | 70,392  |  |      |      | 2.09 |  
|                                           |                                       |                                                  | Time                            |           |                                  | 6,236,199  |                                 |        |          | 68,945 |         |      |         | 4.39 |           |         |            | 6,154,669  |          |        |         | 91,178  |  |      |      | 5.89 |           |           |            | 6,304,724  |     |        |         | 241,409 |  |      |      | 5.12 |  
|                                           |                                       | Foreign                                          |                                 |           | 194,846                          |            |                                 |        | 1,454    |        |         |      | 2.96    |      |           |         | 223,019    |            |          |        | 2,563   |         |  |      | 4.57 |      |           |           | 197,158    |            |     |        | 5,248   |         |  |      | 3.56 |     
|                                           |                                       |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |     
|                                           |                                       |                                                  | Total interest-bearing
deposits |           |                                  | 11,353,859 |                                 |        |          | 92,405 |         |      |         | 3.23 |           |         |            | 10,752,256 |          |        |         | 120,389 |  |      |      | 4.45 |           |           |            | 11,312,995 |     |        |         | 318,687 |  |      |      | 3.77 |  
|                                           | Short-term borrowings                 |                                                  |                                 | 951,671   |                                  |            |                                 | 8,571  |          |        |         | 3.57 |         |      |           | 748,458 |            |            |          | 11,850 |         |         |  | 6.30 |      |      |           | 869,247   |            |            |     | 28,683 |         |         |  | 4.41 |     
|                                           | Long-term debt and
capital securities |                                                  |                                 | 1,028,664 |                                  |            |                                 | 18,953 |          |        |         | 7.31 |         |      |           | 934,367 |            |            |          | 15,987 |         |         |  | 6.81 |      |      |           | 1,023,860 |            |            |     | 56,909 |         |         |  | 7.43 |     
|                                           |                                       |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |     
|                                           |                                       | Total interest-bearing
deposits and
liabilities  |                                 |           | 13,334,194                       |            |                                 |        | 119,929  |        |         |      | 3.57    |      |           |         | 12,435,081 |            |          |        | 148,226 |         |  |      | 4.74 |      |           |           | 13,206,102 |            |     |        | 404,279 |         |  |      | 4.09 |     
|                                           |                                       |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |     
|                                           |                                       | Interest rate spread                             |                                 |           |                                  |            |                                 |        |          |        |         |      | 4.00    | %    |           |         |            |            |          |        |         |         |  |      | 3.67 | %    |           |           |            |            |     |        |         |         |  |      | 3.76 | %   
|                                           |                                       |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |     
|Noninterest-bearing
deposits               |                                       |                                                  | 3,202,541                       |           |                                  |            |                                 |        |          |        |         |      |         |      | 2,766,730 |         |            |            |          |        |         |         |  |      |      |      | 3,101,415 |           |            |            |     |        |         |         |  |     
|Other liabilities                          |                                       |                                                  | 866,530                         |           |                                  |            |                                 |        |          |        |         |      |         |      | 695,527   |         |            |            |          |        |         |         |  |      |      |      | 849,366   |           |            |            |     |        |         |         |  |     
|                                           |                                       |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |     
|                                           |                                       | Total liabilities                                |                                 |           | 17,403,265                       |            |                                 |        |          |        |         |      |         |      |           |         | 15,897,338 |            |          |        |         |         |  |      |      |      |           |           | 17,156,883 |            |     |        |         |         |  |      |      |     
|Stockholders equity                       |                                       |                                                  | 2,097,860                       |           |                                  |            |                                 |        |          |        |         |      |         |      | 1,915,892 |         |            |            |          |        |         |         |  |      |      |      | 2,067,232 |           |            |            |     |        |         |         |  |     
|                                           |                                       |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |     
|                                           |                                       | Total liabilities and
stockholders equity       |                                 | $         | 19,501,125                       |            |                                 |        |          |        |         |      |         |      |           | $       | 17,813,230 |            |          |        |         |         |  |      |      |      |           | $         | 19,224,115 |            |     |        |         |         |  |      |      |     
|                                           |                                       |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |     
|                                           |                                       | Net interest income
and margin on
earning assets |                                 |           |                                  |            |                                 |        | 211,490  |        |         |      | 4.83    | %    |           |         |            |            |          |        | 189,920 |         |  |      | 4.72 | %    |           |           |            |            |     |        | 599,704 |         |  |      | 4.69 | %   
|                                           |                                       |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |     
|Tax equivalent adjustment                  |                                       |                                                  |                                 |           |                                  |            | 89                              |        |          |        |         |      |         |      |           |         |            |            | 80       |        |         |         |  |      |      |      |           |           |            |            | 242 |        |         |         |  |     
|                                           |                                       |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |     
|                                           |                                       | Net interest income                              |                                 |           |                                  |            |                                 | $      | 211,401  |        |         |      |         |      |           |         |            |            |          | $      | 189,840 |         |  |      |      |      |           |           |            |            |     | $      | 599,462 |         |  |      |      |     
|                                           |                                       |                                                  |                                 |           |                                  |            |                                 |        |          |        |         |      |         |      |           |         |            |            |          |        |         |         |  |      |      |      |           |           |            |            |     |        |         |         |  |     

[Additional columns below]

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

|                                           |                                       |                                                  |                                 |         |                                 |            |         |        |          |         |  |      |      |      |  
|------------------------------------------ | ------------------------------------- | ------------------------------------------------ | ------------------------------- | ------- | ------------------------------- | ---------- | ------- | ------ | -------- | ------- |  | ---- | ---- | ---- | -
|                                           |                                       |                                                  |                                 |         | Nine Months Ended September 30,
|                                           |                                       |                                                  |                                 |         |                                
|                                           |                                       |                                                  |                                 |         | 2000                           
|                                           |                                       |                                                  |                                 |         |                                
|                                           |                                       |                                                  |                                 |         |                                 |            |         |        | Interest |         |  |      |     
|                                           |                                       |                                                  |                                 |         | Average                         |            | Income/ |        | Yield/  
|                                           |                                       |                                                  |                                 |         | Balance                         |            | Expense |        | Rate(1) 
|                                           |                                       |                                                  |                                 |         |                                 |            |         |        |         
|                                           |                                       |                                                  |                                 |         | (dollars in thousands)         
|LIABILITIES AND
STOCKHOLDERS EQUITY       |                                       |                                                  |                                 |         |                                 |            |         |        |          |         |  |     
|Interest-bearing deposits
and liabilities: |                                       |                                                  |                                 |         |                                 |            |         |        |          |         |  |     
|                                           | Deposits:                             |                                                  |                                 |         |                                 |            |         |        |          |         |  |      |     
|                                           |                                       | Domestic:                                        |                                 |         |                                 |            |         |        |          |         |  |      |      |     
|                                           |                                       |                                                  | Interest-bearing demand         |         | $                               | 289,703    |         |        | $        | 2,705   |  |      |      | 1.25 | %
|                                           |                                       |                                                  | Savings                         |         |                                 | 4,061,257  |         |        |          | 73,067  |  |      |      | 2.40 |  
|                                           |                                       |                                                  | Time                            |         |                                 | 5,962,663  |         |        |          | 247,938 |  |      |      | 5.55 |  
|                                           |                                       | Foreign                                          |                                 |         | 205,082                         |            |         |        | 6,490    |         |  |      | 4.23 |     
|                                           |                                       |                                                  |                                 |         |                                 |            |         |        |          |         |  |     
|                                           |                                       |                                                  | Total interest-bearing
deposits |         |                                 | 10,518,705 |         |        |          | 330,200 |  |      |      | 4.19 |  
|                                           | Short-term borrowings                 |                                                  |                                 | 839,188 |                                 |            |         | 37,553 |          |         |  | 5.98 |     
|                                           | Long-term debt and
capital securities |                                                  |                                 | 806,412 |                                 |            |         | 40,118 |          |         |  | 6.65 |     
|                                           |                                       |                                                  |                                 |         |                                 |            |         |        |          |         |  |     
|                                           |                                       | Total interest-bearing
deposits and
liabilities  |                                 |         | 12,164,305                      |            |         |        | 407,871  |         |  |      | 4.48 |     
|                                           |                                       |                                                  |                                 |         |                                 |            |         |        |          |         |  |     
|                                           |                                       | Interest rate spread                             |                                 |         |                                 |            |         |        |          |         |  |      | 3.79 | %   
|                                           |                                       |                                                  |                                 |         |                                 |            |         |        |          |         |  |     
|Noninterest-bearing
deposits               |                                       |                                                  | 2,681,287                       |         |                                 |            |         |        |          |         |  |     
|Other liabilities                          |                                       |                                                  | 664,635                         |         |                                 |            |         |        |          |         |  |     
|                                           |                                       |                                                  |                                 |         |                                 |            |         |        |          |         |  |     
|                                           |                                       | Total liabilities                                |                                 |         | 15,510,227                      |            |         |        |          |         |  |      |      |     
|Stockholders equity                       |                                       |                                                  | 1,882,739                       |         |                                 |            |         |        |          |         |  |     
|                                           |                                       |                                                  |                                 |         |                                 |            |         |        |          |         |  |     
|                                           |                                       | Total liabilities and
stockholders equity       |                                 | $       | 17,392,966                      |            |         |        |          |         |  |      |      |     
|                                           |                                       |                                                  |                                 |         |                                 |            |         |        |          |         |  |     
|                                           |                                       | Net interest income
and margin on
earning assets |                                 |         |                                 |            |         |        | 556,189  |         |  |      | 4.77 | %   
|                                           |                                       |                                                  |                                 |         |                                 |            |         |        |          |         |  |     
|Tax equivalent adjustment                  |                                       |                                                  |                                 |         |                                 |            | 348     |        |          |         |  |     
|                                           |                                       |                                                  |                                 |         |                                 |            |         |        |          |         |  |     
|                                           |                                       | Net interest income                              |                                 |         |                                 |            |         | $      | 555,841  |         |  |      |      |     
|                                           |                                       |                                                  |                                 |         |                                 |            |         |        |          |         |  |     



---

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

17



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##### Table of Contents



INVESTMENT SECURITIES

Held-to-Maturity

The following table presents the amortized cost, unrealized gains and losses,
and fair values of held-to-maturity investment securities as of the dates
indicated:

|                  |  |                |        |              |  |               |        |   |  |   |        |  
|----------------- |  | -------------- | ------ | ------------ |  | ------------- | ------ | - |  | - | ------ | -
|                  |  | September 30,  |        | December 31, |  | September 30,
|                  |  | 2001           |        | 2000         |  | 2000         
|                  |  |                |        |              |  |              
|                  |  | (in thousands)
|Amortized cost    |  | $              | 92,535 |              |  | $             | 92,940 |   |  | $ | 99,905 |  
|Unrealized gains  |  |                | 2,575  |              |  |               | 15     |   |  |   |       |  
|Unrealized losses |  |                |       |              |  |               | (1,330 | ) |  |   | (2,876 | )
|                  |  |                |        |              |  |               |        |   |  |   |        |  
|Fair value        |  | $              | 95,110 |              |  | $             | 91,625 |   |  | $ | 97,029 |  
|                  |  |                |        |              |  |               |        |   |  |   |        |  

Held-to-maturity investment securities decreased by $405,000, or .4%, compared
to December 31, 2000 and by $7.4 million, or 7.4%, compared to September 30,
2000, principally due to maturities of the investment securities.

Available-for-Sale

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,
|                  |  | 2001           |           | 2000         |  | 2000         
|                  |  |                |           |              |  |              
|                  |  | (in thousands)
|Amortized cost    |  | $              | 2,241,681 |              |  | $             | 1,948,029 |   |  | $ | 1,925,264 |  
|Unrealized gains  |  |                | 58,272    |              |  |               | 15,934    |   |  |   | 8,280     |  
|Unrealized losses |  |                | (294      | )            |  |               | (3,183    | ) |  |   | (13,417   | )
|                  |  |                |           |              |  |               |           |   |  |   |           |  
|Fair value        |  | $              | 2,299,659 |              |  | $             | 1,960,780 |   |  | $ | 1,920,127 |  
|                  |  |                |           |              |  |               |           |   |  |   |           |  

Gross realized gains and losses on available-for-sale investment securities for
the nine months ended September 30, 2001 and 2000 were as follows:

|                                         |  |                |        |   |  |   |      |  
|---------------------------------------- |  | -------------- | ------ | - |  | - | ---- | -
|                                         |  |                | 2001   |   |  |   | 2000 |  
|                                         |  |                |        |  
|                                         |  | (in thousands)
|Realized
          gains                 |  | $              | 19,987 |   |  | $ | 38   |  
|Realized
          losses                |  |                | (51    | ) |  |   | (97  | )
|                                         |  |                |        |   |  |   |      |  
|Securities
          gains (losses), net |  | $              | 19,936 |   |  | $ | (59  | )
|                                         |  |                |        |   |  |   |      |  

Gains and losses realized on the sales of available-for-sale investment
securities are determined using the specific identification method. Realized
gains on the sale of investment securities for the nine months ended September 30,
2001 include $18.5 million in pre-tax gain on the sale of Concord stock in
the second quarter of 2001. This gain is in addition to the $41.3 million
pre-tax gain recognized upon recordation of the Concord stock as an
available-for-sale security. See section below, Concord Security Gain, for
more information.

Concord Security Gain

The $41.3 million pre-tax securities gain that was recognized in the first
quarter of 2001 relates to the merger between Star System, Inc. (Star) and
Concord EFS, Inc. (Concord) on February 1, 2001. All of the outstanding shares
of Star were exchanged for Concord shares in the merger. Prior to that merger,
BancWests shares of Star Systems, Inc., were reported on our Consolidated
Balance Sheet in other assets due to certain provisions of SFAS No. 115,
Accounting for Certain Investments in Debt and Equity Securities.

18



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##### Table of Contents



LOANS AND LEASES

The following table sets forth the loan and lease portfolio by major categories and loan and lease mix at September 30, 2001,
December 31, 2000 and September 30, 2000:

|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |      |       |  
|-------------------------------------- | ------------ | ----------------------------------- | --------- | ---------------------- | ---------- | ----------------- | ---- | ------------------ | ----- | - | --------- | --------- | ---------- | - | ---- | ---- | ----- | - | --------- | --------- | ---------- |  | ---- | ---- | ----- | -
|                                       |              |                                     |           | September 30, 2001     |            | December 31, 2000 |      | September 30, 2000
|                                       |              |                                     |           |                        |            |                   |      |                   
|                                       |              |                                     |           | Amount                 |            | %                 |      | Amount             |       | % |           | Amount    |            | %
|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |  
|                                       |              |                                     |           | (dollars in thousands)
|Commercial, financial and agricultural |              | $                                   | 2,442,545 |                        |            |                   | 16.4 | %                  |       | $ | 2,604,590 |           |            |   | 18.6 | %    |       | $ | 2,475,096 |           |            |  | 18.2 | %   
|Real estate:                           |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|                                       | Commercial   |                                     |           | 2,857,111              |            |                   |      | 19.1               |       |   |           | 2,618,312 |            |   |      | 18.7 |       |   |           | 2,548,303 |            |  |      | 18.8 |      
|                                       | Construction |                                     |           | 416,368                |            |                   |      | 2.8                |       |   |           | 405,542   |            |   |      | 2.9  |       |   |           | 430,765   |            |  |      | 3.2  |      
|                                       | Residential: |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |      |      
|                                       |              | Insured, guaranteed or
conventional |           |                        | 1,771,280  |                   |      |                    | 11.9  |   |           |           | 1,919,017  |   |      |      | 13.7  |   |           |           | 1,929,500  |  |      |      | 14.2  |  
|                                       |              | Home equity credit lines            |           |                        | 437,963    |                   |      |                    | 2.9   |   |           |           | 441,150    |   |      |      | 3.2   |   |           |           | 443,635    |  |      |      | 3.3   |  
|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total real estate loans             |           |                        | 5,482,722  |                   |      |                    | 36.7  |   |           |           | 5,384,021  |   |      |      | 38.5  |   |           |           | 5,352,203  |  |      |      | 39.5  |  
|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|Consumer                               |              |                                     | 4,341,508 |                        |            |                   | 29.1 |                    |       |   | 3,599,954 |           |            |   | 25.8 |      |       |   | 3,462,373 |           |            |  | 25.5 |     
|Lease financing                        |              |                                     | 2,290,689 |                        |            |                   | 15.4 |                    |       |   | 2,038,516 |           |            |   | 14.6 |      |       |   | 1,931,934 |           |            |  | 14.2 |     
|Foreign                                |              |                                     | 354,680   |                        |            |                   | 2.4  |                    |       |   | 344,750   |           |            |   | 2.5  |      |       |   | 344,214   |           |            |  | 2.6  |     
|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total loans and leases              |           |                        | 14,912,144 |                   |      |                    | 100.0 | % |           |           | 13,971,831 |   |      |      | 100.0 | % |           |           | 13,565,820 |  |      |      | 100.0 | %
|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|Less allowance for credit losses       |              |                                     | 188,717   |                        |            |                   |      |                    |       |   | 172,443   |           |            |   |      |      |       |   | 171,386   |           |            |  |      |     
|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total net loans and leases          |           | $                      | 14,723,427 |                   |      |                    |       |   |           | $         | 13,799,388 |   |      |      |       |   |           | $         | 13,394,434 |  |      |      |       |  
|                                       |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|Total loans and leases to:             |              |                                     |           |                        |            |                   |      |                    |       |   |           |           |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total assets                        |           |                        |            |                   |      |                    | 75.5  | % |           |           |            |   |      |      | 75.7  | % |           |           |            |  |      |      | 75.5  | %
|                                       |              | Total earning assets                |           |                        |            |                   |      |                    | 86.3  | % |           |           |            |   |      |      | 86.4  | % |           |           |            |  |      |      | 85.2  | %
|                                       |              | Total deposits                      |           |                        |            |                   |      |                    | 101.7 | % |           |           |            |   |      |      | 98.9  | % |           |           |            |  |      |      | 98.0  | %

The loan and lease portfolio is the largest component of total earning assets
and accounts for the greatest portion of total interest income. At September 30,
2001, total net loans and leases were $14.7 billion, representing increases
of 6.7% and 9.9% over December 31, 2000 and September 30, 2000, respectively.
The increase in loans and leases as of September 30, 2001, as compared to
September 30, 2000, was primarily due to increases in real estate-commercial
loans, consumer loans and lease financing, primarily in our Bank of the West
operating segment. Also contributing to the increase in loans and leases in
the Bank of the West operating segment were the loans acquired with the
branches in Nevada and New Mexico. The increase was partially offset by
decreases in commercial and real estate-residential loan categories in our
First Hawaiian operating segment.

Commercial, financial and agricultural loans as of September 30, 2001 decreased
$162.0 million, or 6.2%, compared to December 31, 2000, and decreased $32.6
million, or 1.3%, compared to September 30, 2000. The decrease in this
category was primarily in our First Hawaiian operating segment due to a planned
reduction in syndicated national credits.

Real estate-commercial loans increased $238.8 million, or 9.1%, from December
31, 2000, and increased $308.8 million, or 12.1%, from September 30, 2000. The
increase over the past twelve months was primarily due to the growth in our
Bank of the West operating segment.

19



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##### Table of Contents



LOANS AND LEASES, Continued

Consumer loans as of September 30, 2001 increased $741.6 million, or 20.6%,
over December 31, 2000, and $879.1 million, or 25.4%, over September 30, 2000.
Consumer loans consist primarily of direct and indirect automobile,
recreational vehicle, marine, credit card and unsecured financing. The
increase in consumer loans at September 30, 2001 as compared to December 31,
2000 and September 30, 2000 was primarily a result of growth in our Bank of the
West operating segment on the mainland United States.

Lease financing as of September 30, 2001 increased $252.2 million, or 12.4%,
over December 31, 2000, and $358.8 million, or 18.6%, over September 30, 2000.
The increase in lease financing from September 30, 2000 was primarily due to an
increase in the automobile lease portfolio in our Bank of the West operating
segment. The increase in lease financing at September 30, 2001, as compared to
December 31, 2000, was primarily due to increases on the mainland United
States.

Our foreign loans are principally in Guam and Saipan. Foreign loans as of
September 30, 2001 increased $9.9 million, or 2.9%, compared to December 31,
2000, with approximately 92% domiciled in Guam and Saipan.

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, 2001, 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 above table.

DEPOSITS

Deposits are the largest component of our total liabilities and account for the
greatest portion of total interest expense. At September 30, 2001, total
deposits were $14.7 billion, an increase of 6.0% over September 30, 2000. The
increase was primarily due to the growth in our customer deposit base,
primarily in the Bank of the West operating segment, including the
newly-acquired branches in Nevada and New Mexico, and various deposit product
programs that we initiated.

The decrease in all of the rates paid on deposits reflects falling rates in
2001 following the rising interest rate environment for most of 2000, caused
primarily by actions of the Federal Reserves Open Market Committee. The
100-basis-point total increase in the benchmark Federal Funds rate in 2000 was
followed by eight sharp and rapid decreases in the first nine months of 2001
totaling 350 basis points. The rates paid on deposits reflect this rapidly
changing interest rate environment at different speeds, due to the repricing
characteristics of each type of deposit. Time deposits, which generally
reprice more slowly than other deposits, do not yet fully reflect the sharp
decreases in interest rates implemented in 2001, while interest-bearing and
savings deposits, which can be repriced more rapidly, are more reflective of
the current decrease in the interest rate environment. The deposits in the
foreign category are a mixture of time, savings and other interest-bearing
deposits; therefore, its rate reflects both types of repricing characteristics.
Additional information on our average deposit balances and rates paid is
provided in the table on pages 16 and 17.

20



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NONPERFORMING ASSETS

Nonperforming assets at September 30, 2001, December 31, 2000 and September 30, 2000 are as follows:

|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |        |        |        |         | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------- | -------------------------------------- | ------------------------------------ | ------------------------------------ | ------ | ---------------------- | ------- | ------------ | ------ | ------------- | ------- | ------ | ------ | ------ | ------- | 
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        | September 30,          |         | December 31, |        | September 30,
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        | 2001                   |         | 2000         |        | 2000         
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |              
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        | (dollars in thousands)
|Nonperforming Assets:                                                                                                                                        |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|                                                                                                                                                             | Nonaccrual:                                               |                                        |                                      |                                      |        |                        |         |              |        |               |         |        |       
|                                                                                                                                                             |                                                           | Commercial, financial and agricultural |                                      | $                                    | 44,026 |                        |         | $            | 42,089 |               |         | $      | 18,874 |       
|                                                                                                                                                             |                                                           | Real estate:                           |                                      |                                      |        |                        |         |              |        |               |         |        |        |       
|                                                                                                                                                             |                                                           |                                        | Commercial                           |                                      |        | 22,602                 |         |              |        | 15,331        |         |        |        | 21,108 |        
|                                                                                                                                                             |                                                           |                                        | Construction                         |                                      |        |                       |         |              |        | 403           |         |        |        | 666    |        
|                                                                                                                                                             |                                                           |                                        | Residential:                         |                                      |        |                        |         |              |        |               |         |        |        |        |        
|                                                                                                                                                             |                                                           |                                        |                                      | Insured, guaranteed, or conventional |        |                        | 10,412  |              |        |               | 11,521  |        |        |        | 13,382  | 
|                                                                                                                                                             |                                                           |                                        |                                      | Home equity credit lines             |        |                        |        |              |        |               |        |        |        |        | 566     | 
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|                                                                                                                                                             |                                                           |                                        |                                      | Total real estate loans              |        |                        | 33,014  |              |        |               | 27,255  |        |        |        | 35,722  | 
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|                                                                                                                                                             |                                                           | Consumer                               |                                      |                                      | 4,403  |                        |         |              | 3,257  |               |         |        | 3,418  |       
|                                                                                                                                                             |                                                           | Lease financing                        |                                      |                                      | 12,955 |                        |         |              | 6,532  |               |         |        | 6,108  |       
|                                                                                                                                                             |                                                           | Foreign                                |                                      |                                      | 4,932  |                        |         |              | 5,496  |               |         |        | 5,241  |       
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|                                                                                                                                                             |                                                           |                                        |                                      | Total nonaccrual loans and leases    |        |                        | 99,330  |              |        |               | 84,629  |        |        |        | 69,363  | 
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|                                                                                                                                                             | Restructured:                                             |                                        |                                      |                                      |        |                        |         |              |        |               |         |        |       
|                                                                                                                                                             |                                                           | Commercial, financial and agricultural |                                      |                                      | 1,002  |                        |         |              | 927    |               |         |        | 927    |       
|                                                                                                                                                             |                                                           | Real estate:                           |                                      |                                      |        |                        |         |              |        |               |         |        |        |       
|                                                                                                                                                             |                                                           |                                        | Commercial                           |                                      |        | 3,348                  |         |              |        | 7,055         |         |        |        | 9,593  |        
|                                                                                                                                                             |                                                           |                                        | Construction                         |                                      |        |                       |         |              |        |              |         |        |        | 7,649  |        
|                                                                                                                                                             |                                                           |                                        | Residential:                         |                                      |        |                        |         |              |        |               |         |        |        |        |        
|                                                                                                                                                             |                                                           |                                        |                                      | Insured, guaranteed, or conventional |        |                        | 337     |              |        |               | 937     |        |        |        | 1,108   | 
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|                                                                                                                                                             |                                                           |                                        |                                      | Total real estate loans              |        |                        | 3,685   |              |        |               | 7,992   |        |        |        | 18,350  | 
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|                                                                                                                                                             |                                                           |                                        |                                      | Total restructured loans and leases  |        |                        | 4,687   |              |        |               | 8,919   |        |        |        | 19,277  | 
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|                                                                                                                                                             |                                                           |                                        |                                      | Total nonperforming loans and leases |        |                        | 104,017 |              |        |               | 93,548  |        |        |        | 88,640  | 
|                                                                                                                                                             | Other real estate owned and repossessed personal property |                                        |                                      | 22,610                               |        |                        |         | 27,479       |        |               |         | 31,300 |       
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|                                                                                                                                                             |                                                           |                                        |                                      | Total nonperforming assets           |        | $                      | 126,627 |              |        | $             | 121,027 |        |        | $      | 119,940 | 
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|Past due loans and leases(1):                                                                                                                                |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|                                                                                                                                                             | Commercial, financial and agricultural                    |                                        | $                                    | 3,680                                |        |                        | $       | 6,183        |        |               | $       | 4,227  |       
|                                                                                                                                                             | Real estate:                                              |                                        |                                      |                                      |        |                        |         |              |        |               |         |        |       
|                                                                                                                                                             |                                                           | Commercial                             |                                      |                                      | 1,554  |                        |         |              | 1,987  |               |         |        | 2,206  |       
|                                                                                                                                                             |                                                           | Construction                           |                                      |                                      | 3,551  |                        |         |              |       |               |         |        |       |       
|                                                                                                                                                             |                                                           | Residential:                           |                                      |                                      |        |                        |         |              |        |               |         |        |        |       
|                                                                                                                                                             |                                                           |                                        | Insured, guaranteed, or conventional |                                      |        | 3,215                  |         |              |        | 3,387         |         |        |        | 3,472  |        
|                                                                                                                                                             |                                                           |                                        | Home equity credit lines             |                                      |        | 230                    |         |              |        | 499           |         |        |        | 529    |        
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|                                                                                                                                                             |                                                           |                                        |                                      | Total real estate loans              |        |                        | 8,550   |              |        |               | 5,873   |        |        |        | 6,207   | 
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|                                                                                                                                                             | Consumer                                                  |                                        |                                      | 2,262                                |        |                        |         | 3,719        |        |               |         | 2,549  |       
|                                                                                                                                                             | Lease financing                                           |                                        |                                      | 201                                  |        |                        |         | 113          |        |               |         | 254    |       
|                                                                                                                                                             | Foreign                                                   |                                        |                                      | 1,084                                |        |                        |         | 1,321        |        |               |         | 764    |       
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|                                                                                                                                                             |                                                           |                                        |                                      | Total past due loans and leases      |        | $                      | 15,777  |              |        | $             | 17,209  |        |        | $      | 14,001  | 
|                                                                                                                                                             |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|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                       |                                        |                                      | .85                                  | %      |                        |         | .86          | %      |               |         | .88    | %     
|                                                                                                                                                             | Including past due loans and leases                       |                                        |                                      | .95                                  | %      |                        |         | .99          | %      |               |         | .99    | %     
|Nonperforming assets to total assets (end of period):                                                                                                        |                                                           |                                        |                                      |                                      |        |                        |         |              |        |               |         |       
|                                                                                                                                                             | Excluding past due loans and leases                       |                                        |                                      | .64                                  | %      |                        |         | .66          | %      |               |         | .67    | %     
|                                                                                                                                                             | Including past due loans and leases                       |                                        |                                      | .72                                  | %      |                        |         | .75          | %      |               |         | .75    | %     



---

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

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NONPERFORMING ASSETS, Continued

Nonperforming assets at September 30, 2001
were $126.6 million, or .85%, of
total loans and leases and other real estate owned and repossessed personal
property (OREO), compared to .88% at September 30, 2000. Nonperforming assets
at September 30, 2001 were .64% of total assets, compared to .67% at September
30, 2000.

Nonperforming assets at September 30, 2001 increased by $5.6 million, or 4.6%,
from December 31, 2000. The increase in nonaccrual loans was primarily
due to commercial, financial and agricultural loans, real estate-commercial
loans and lease financing loans in our Bank of the West operating segment. The
increase in nonperforming assets in the Bank of the West operating segment
was primarily due to the growth in its loan portfolio. The increase in
nonperforming assets in the Bank of the West operating segment was partially
offset by lower nonperforming assets in the First Hawaiian operating segment.

Nonperforming assets at September 30, 2001 increased by $6.7 million, or 5.6%,
from September 30, 2000. The increase was primarily attributable to increases
in nonaccrual commercial, financial and agricultural loans and lease financing
loans, which were partially offset by decreases in nearly all components of
nonaccrual real estate loans and restructured real estate  commercial and
construction loans.

We generally place a loan or lease on nonaccrual status when we believe that
collection of principal or income has become doubtful or when loans and leases
are 90 days past due as to principal or income, 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 or when other factors indicate that the borrower will
shortly bring the loan current.

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 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 $15.8
million at September 30, 2001, an increase of $1.8 million, or 12.7%, from
September 30, 2000. Loans past due 90 days or more and still accruing interest
decreased by $1.4 million, or 8.3%, from December 31, 2000 to September 30,
2001. The decrease was primarily due to lower commercial, financial and
agricultural loan and consumer loan delinquencies, which were partially offset
by an increase in construction loans. 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.

22



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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,    
|                                                                                                   |                                                        |                                                      |                                                                                  |         |                        |         |                  
|                                                                                                   |                                                        |                                                      |                                                                                  |         | 2001                   |         | 2000              |         | 2001  |         | 2000      
|                                                                                                   |                                                        |                                                      |                                                                                  |         |                        |         |                   |         |       |         |           
|                                                                                                   |                                                        |                                                      |                                                                                  |         | (dollars in thousands)
|Loans and leases outstanding (end of period)                                                       |                                                        | $                                                    | 14,912,144                                                                       |         |                        | $       | 13,565,820        |         |       | $       | 14,912,144 |         |        | $       | 13,565,820 |        
|                                                                                                   |                                                        |                                                      |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |        
|Average loans and leases outstanding                                                               |                                                        | $                                                    | 14,716,138                                                                       |         |                        | $       | 13,510,874        |         |       | $       | 14,423,028 |         |        | $       | 13,109,103 |        
|                                                                                                   |                                                        |                                                      |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |        
|Allowance for credit losses:                                                                       |                                                        |                                                      |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |        
|                                                                                                   | Balance at beginning of period                         |                                                      | $                                                                                | 191,698 |                        |         | $                 | 169,340 |       |         | $          | 172,443 |        |         | $          | 161,418 |       
|                                                                                                   |                                                        |                                                      |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |        
|                                                                                                   | Loans and leases charged off:                          |                                                      |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |         |       
|                                                                                                   |                                                        | Commercial, financial and agricultural               |                                                                                  |         | 4,964                  |         |                   |         | 1,337 |         |            |         | 21,789 |         |            |         | 4,226  |        
|                                                                                                   |                                                        | Real estate:                                         |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |         |        |        
|                                                                                                   |                                                        |                                                      | Commercial                                                                       |         |                        | 527     |                   |         |       | 1,448   |            |         |        | 996     |            |         |        | 2,556   |  
|                                                                                                   |                                                        |                                                      | Construction                                                                     |         |                        |        |                   |         |       | 1,125   |            |         |        |        |            |         |        | 3,480   |  
|                                                                                                   |                                                        |                                                      | Residential                                                                      |         |                        | 1,021   |                   |         |       | 1,633   |            |         |        | 2,555   |            |         |        | 4,810   |  
|                                                                                                   |                                                        | Consumer                                             |                                                                                  |         | 11,261                 |         |                   |         | 6,354 |         |            |         | 29,485 |         |            |         | 19,532 |        
|                                                                                                   |                                                        | Lease financing                                      |                                                                                  |         | 3,940                  |         |                   |         | 3,450 |         |            |         | 11,127 |         |            |         | 7,552  |        
|                                                                                                   |                                                        | Foreign                                              |                                                                                  |         | 252                    |         |                   |         | 553   |         |            |         | 1,127  |         |            |         | 1,075  |        
|                                                                                                   |                                                        |                                                      |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |        
|                                                                                                   |                                                        |                                                      | Total loans and leases charged off                                               |         |                        | 21,965  |                   |         |       | 15,900  |            |         |        | 67,079  |            |         |        | 43,231  |  
|                                                                                                   |                                                        |                                                      |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |        
|                                                                                                   | Recoveries on loans and leases previously charged off: |                                                      |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |         |       
|                                                                                                   |                                                        | Commercial, financial and agricultural               |                                                                                  |         | 211                    |         |                   |         | 638   |         |            |         | 558    |         |            |         | 1,467  |        
|                                                                                                   |                                                        | Real estate:                                         |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |         |        |        
|                                                                                                   |                                                        |                                                      | Commercial                                                                       |         |                        | 13      |                   |         |       | 31      |            |         |        | 79      |            |         |        | 126     |  
|                                                                                                   |                                                        |                                                      | Construction                                                                     |         |                        | 88      |                   |         |       | 9       |            |         |        | 285     |            |         |        | 41      |  
|                                                                                                   |                                                        |                                                      | Residential                                                                      |         |                        | 53      |                   |         |       | 226     |            |         |        | 439     |            |         |        | 769     |  
|                                                                                                   |                                                        | Consumer                                             |                                                                                  |         | 1,783                  |         |                   |         | 1,644 |         |            |         | 5,330  |         |            |         | 4,989  |        
|                                                                                                   |                                                        | Lease financing                                      |                                                                                  |         | 773                    |         |                   |         | 493   |         |            |         | 1,768  |         |            |         | 1,547  |        
|                                                                                                   |                                                        | Foreign                                              |                                                                                  |         | 113                    |         |                   |         | 105   |         |            |         | 594    |         |            |         | 280    |        
|                                                                                                   |                                                        |                                                      |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |        
|                                                                                                   |                                                        |                                                      | Total
          recoveries on loans and leases 
          previously charged off |         |                        | 3,034   |                   |         |       | 3,146   |            |         |        | 9,053   |            |         |        | 9,219   |  
|                                                                                                   |                                                        |                                                      |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |        
|                                                                                                   |                                                        |                                                      | Net charge-offs                                                                  |         |                        | (18,931 | )                 |         |       | (12,754 | )          |         |        | (58,026 | )          |         |        | (34,012 | )
|                                                                                                   |                                                        |                                                      |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |        
|                                                                                                   | Provision for credit losses                            |                                                      |                                                                                  | 15,950  |                        |         |                   | 14,800  |       |         |            | 74,300  |        |         |            | 43,980  |       
|                                                                                                   |                                                        |                                                      |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |        
|                                                                                                   | Balance at end of period                               |                                                      | $                                                                                | 188,717 |                        |         | $                 | 171,386 |       |         | $          | 188,717 |        |         | $          | 171,386 |       
|                                                                                                   |                                                        |                                                      |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |        
|Net loans and leases charged off to average loans
and leases                                       |                                                        |                                                      | .51                                                                              | %(1)    |                        |         | .38               | %(1)    |       |         | .54        | %(1)    |        |         | .35        | %(1)   
|Net loans and leases charged off to allowance for
credit losses                                    |                                                        |                                                      | 39.80                                                                            | %(1)    |                        |         | 29.60             | %(1)    |       |         | 41.11      | %(1)    |        |         | 26.51      | %(1)   
|Allowance
          for credit losses to total loans
          and leases (end of period)          |                                                        |                                                      | 1.27                                                                             | %       |                        |         | 1.26              | %       |       |         | 1.27       | %       |        |         | 1.26       | %      
|Allowance
          for credit losses to nonperforming loans
          and leases (end of period): |                                                        |                                                      |                                                                                  |         |                        |         |                   |         |       |         |            |         |        |         |            |        
|                                                                                                   |                                                        | Excluding 90 days past due
accruing loans and leases |                                                                                  |         | 1.81x                  |         |                   |         | 1.93x |         |            |         | 1.81x  |         |            |         | 1.93x  |        
|                                                                                                   |                                                        | Including 90 days past due
accruing loans and leases |                                                                                  |         | 1.58x                  |         |                   |         | 1.67x |         |            |         | 1.58x  |         |            |         | 1.67x  |        



---

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

23



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PROVISION AND ALLOWANCE FOR CREDIT LOSSES, Continued

The provision for credit losses for the first nine months of 2001 was $74.3
million, an increase of $30.3 million, or 68.9%, over the same period in 2000.
The increase in the provision for credit losses for the first nine months of
2001 over the same period in 2000 primarily reflects the larger loan portfolio
resulting from our continued loan volume growth, higher charge-offs and certain
macroeconomic and other factors discussed below.

The provision for credit losses is based upon our judgment as to the adequacy
of the allowance for credit losses (the Allowance) 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.

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 2.8% of total loans and
leases at September 30, 2001), Hawaii commercial real estate and
agricultural loans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  |  | Restricted Participation in Syndicated National Credits.
In addition to providing backup commercial paper facilities
primarily to investment-grade companies, we participate in media
finance credits in the national market, one of our traditional
niches where we have developed a special expertise over a long
period of time and with experienced personnel. Recently, we began
a program to reduce our outstanding commitments and balances in
these types of credits. Total shared national credits and media
finance loans outstanding fell by 25% between December 31, 2000
and September 30, 2001. At September 30, 2001, the ratio of
nonperforming shared national credits and media finance loans to
total shared national credits and media finance loans outstanding
was 2%.                                                                                                                                                            
|
| |  |  | Emphasis on 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 67% of our lease
financing portfolio and 23% of our combined lease financing and
consumer loans at September 30, 2001), we obtain third-party
insurance for the estimated residual value of the leased vehicle.
To the extent that these policies include deductible values, we
set aside reserves to fully cover the uninsured portion.

24



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PROVISION AND ALLOWANCE FOR CREDIT LOSSES, Continued

Although we have taken substantial effort to attempt to mitigate risk within
our loan portfolio, a confluence of events in the first nine months of 2001 has
made it prudent to increase our provision for credit losses. While we have not
specifically identified credits that are currently losses or potential problem
loans (other than those identified in our discussion of nonperforming assets on
pages 21 and 22), certain events make it probable that there are losses
inherent in our portfolio. These events include:



| |  |  | The rapid and sharp economic slowdown in certain key
sectors of the United States economy, in particular, manufacturing
and technology. The slowing conditions of the national and
regional economies were further exacerbated by the unforeseen and
devastating effects of the terrorist attacks on September 11,
2001. These external events may prove to be the catalyst for a
longer and more severe economic downturn than was previously
expected.                                                                                                                                                                                                                                  
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | The steep decline of the equity markets in the United
States in the first nine months of 2001 has erased a substantial
portion of household net worth that was accumulated throughout
most of the 1990s. The decline could affect our portfolio in the
form of increased charge-offs and nonaccrual loans in the coming
months.                                                                                                                                                                                                                                                                                                                                                           
|
| |  |  | As evidenced by the continuing reduction of key interest
rates by the Federal Reserve and other enacted and contemplated
fiscal measures, the economic vitality of the United States does
not appear to be rapidly rebounding as had been earlier hoped.
The events of September 11th have added further pressures to an
already weakened economy. Evidence of a robust rebound prior to
September 11th were not readily apparent. With the additional
concerns created by the attacks, a rapid return to sustained
economic growth appears unlikely.                                                                                                                                     
|
| |  |  | The purchase of 30 branches in Nevada and New Mexico
necessitated additional provision for credit losses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| |  |  | The attacks on September 11th, the response of the United
States military and the economic aftershocks caused by these
events continue to broadly impact the national and regional
economies. Due to measures that we took earlier in the year in
response to deteriorating conditions prior to September 11th, our
allowance for credit losses should be able to adequately absorb
the initial effects of these events. However, we will continue to
closely monitor the current and potential impact that this
unfolding crisis has on our loan and lease portfolio. Worsening
economic conditions may warrant additional amounts for the
provision for credit losses in future periods.

Charge-offs were $67.1 million for the first nine months of 2001, an increase
of $23.8 million, or 55.2%, over the same period in 2000. The increase was
primarily due to charge-offs in commercial, financial and
agricultural loans,
consumer loans and lease financing in the first nine months of 2001. In
particular, the charge-offs in the first nine months of 2001 were higher than
in the same period of 2000 due to the write-off of $4.4 million in agricultural
credits in the Pacific Northwest, the write-off of commercial, financial and
agricultural loans totaling $6.3 million and $2.5 million for commercial
fraud-related losses. In addition, the higher charge-offs resulted from the
larger loan portfolio of our Bank of the West operating segment.

For the first nine months of 2001, recoveries decreased slightly by $166,000,
or 1.8%, compared to the same period in 2000. The decrease in recoveries was
primarily in commercial, financial and agricultural loans.

The Allowance decreased to 1.81 times nonperforming loans and leases (excluding
90 days or more past due accruing loans and leases) at September 30, 2001 from
1.93 times at September 30, 2000. The decrease in the ratio is principally due
to an increase in nonperforming loans and leases as mentioned previously. In
part, the additional provision for credit losses results from the higher
charge-offs we have experienced in the first nine months of 2001. The
additional provision for credit losses is necessary to adequately maintain our
Allowance for the inherent losses within our portfolio that result from the
macroeconomic factors described above.

In our judgment, the Allowance was adequate to absorb losses inherent in the
loan and lease portfolio at September 30, 2001. 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
those specific items mentioned above in particular and make necessary
adjustments to the Allowance accordingly.

25



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##### Table of Contents



NONINTEREST INCOME

The following table reflects the key components of the change in noninterest
income for the three and nine months ended September 30, 2001, as compared to
the same periods in 2000:

|                                 |                                      |                          |   |                |         |      |   |          |         |  |  |       |      |  
|-------------------------------- | ------------------------------------ | ------------------------ | - | -------------- | ------- | ---- | - | -------- | ------- |  |  | ----- | ---- | -
|                                 |                                      |                          |   | 2001           |         | 2000 |   | % Change
|                                 |                                      |                          |   |                |         |      |   |         
|                                 |                                      |                          |   | (in thousands) |         |      |   |         
|Three months ended September 30, |                                      |                          |   |                |         |      |   |          |         |  |  |      
|                                 | Service charges on deposit accounts  |                          | $ | 22,575         |         |      | $ | 19,263   |         |  |  | 17.2  | %   
|                                 | Trust and investment services income |                          |   | 7,780          |         |      |   | 9,451    |         |  |  | (17.7 | )   
|                                 | Other service charges and fees       |                          |   | 19,983         |         |      |   | 18,093   |         |  |  | 10.4  |     
|                                 | Securities gains (losses), net       |                          |   | 1              |         |      |   | (28      | )       |  |  | N/M   |     
|                                 | Other                                |                          |   | 10,822         |         |      |   | 6,788    |         |  |  | 59.4  |     
|                                 |                                      |                          |   |                |         |      |   |          |         |  |  |      
|                                 |                                      | Total noninterest income |   | $              | 61,161  |      |   | $        | 53,567  |  |  |       | 14.2 | %
|                                 |                                      |                          |   |                |         |      |   |          |         |  |  |      
|Nine months ended September 30,  |                                      |                          |   |                |         |      |   |          |         |  |  |      
|                                 | Service charges on deposit accounts  |                          | $ | 65,584         |         |      | $ | 54,700   |         |  |  | 19.9  | %   
|                                 | Trust and investment services income |                          |   | 24,990         |         |      |   | 27,234   |         |  |  | (8.2  | )   
|                                 | Other service charges and fees       |                          |   | 58,555         |         |      |   | 54,561   |         |  |  | 7.3   |     
|                                 | Securities gains (losses), net       |                          |   | 61,237         |         |      |   | (59      | )       |  |  | N/M   |     
|                                 | Other                                |                          |   | 29,090         |         |      |   | 25,376   |         |  |  | 14.6  |     
|                                 |                                      |                          |   |                |         |      |   |          |         |  |  |      
|                                 |                                      | Total noninterest income |   | $              | 239,456 |      |   | $        | 161,812 |  |  |       | 48.0 | %
|                                 |                                      |                          |   |                |         |      |   |          |         |  |  |      

N/M  Not Meaningful.

As the table above shows in more detail, noninterest income increased by 14.2%
and 48.0% for the three and nine months ended September 30, 2001, respectively,
compared to the same periods in 2000. Significant items include the following:



| |  | The Concord stock securities gain was primarily responsible for the
increase in securities gains for the nine months ended September 30,
2001 as compared to the same period in 2000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| 
| |  | The increases in service charges on deposit accounts for the three and
nine months ended September 30, 2001, compared to the same periods in
2000, were primarily due to higher levels of deposits resulting from
the expansion of our customer deposit base predominately in our Bank
of the West operating segment, including the deposits from the 30
branches acquired in Nevada and New Mexico in the first quarter of
2001.                                                                                                                                                                                                                                                                                                                   
| 
| |  | The decrease in trust and investment services income for the three and
nine months ended September 30, 2001, compared to the same periods in
2000, resulted primarily from decreased investment management fee income
as a result of a lower valuation of investments under management.                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| 
| |  | The increases in other service charges and fees for the three and nine
months ended September 30, 2001, compared to the same periods in 2000,
were primarily due to: (1) higher merchant services fees, due to
higher fee charges, increased volume and more merchant outlets; (2)
higher bank card and ATM convenience fee income; and (3) higher
miscellaneous service fees.                                                                                                                                                                                                                                                                                                                                                                      
| 
| |  | The increase in other noninterest income in the three and nine
months ended September 30, 2001, as compared to the same periods in
2000, was primarily due to the approximately $4 million gain on sale
of a leveraged lease in the third quarter of 2001. The increase for
the nine-month period ended September 30, 2001, as compared to the
same period in 2000, was partially offset by the receipt of $5 million
in termination fees related to the previous plan to acquire branches
that were to be divested under the terminated Zions Bancorporation and
First Security Corporation merger in the second quarter of 2000. In
addition, in the second quarter of 2000, we recorded the gain on a
sale of a surplus facility of $1.2 million.

26



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##### Table of Contents



NONINTEREST EXPENSE

The following table reflects the key components of the change in noninterest
expense for the three and nine months ended September 30, 2001 as compared to
the same periods in 2000:

|                                 |                                                                              |                           |   |                |         |      |   |          |         |  |  |      |      |  
|-------------------------------- | ---------------------------------------------------------------------------- | ------------------------- | - | -------------- | ------- | ---- | - | -------- | ------- |  |  | ---- | ---- | -
|                                 |                                                                              |                           |   | 2001           |         | 2000 |   | % Change
|                                 |                                                                              |                           |   |                |         |      |   |         
|                                 |                                                                              |                           |   | (in thousands) |         |      |   |         
|Three months ended September 30, |                                                                              |                           |   |                |         |      |   |          |         |  |  |     
|                                 | Salaries and wages                                                           |                           | $ | 52,283         |         |      | $ | 46,652   |         |  |  | 12.1 | %   
|                                 | Employee benefits                                                            |                           |   | 18,086         |         |      |   | 13,559   |         |  |  | 33.4 |     
|                                 | Occupancy expense                                                            |                           |   | 16,676         |         |      |   | 15,836   |         |  |  | 5.3  |     
|                                 | Outside services                                                             |                           |   | 11,878         |         |      |   | 11,001   |         |  |  | 8.0  |     
|                                 | Intangible amortization                                                      |                           |   | 11,129         |         |      |   | 9,141    |         |  |  | 21.7 |     
|                                 | Equipment expense                                                            |                           |   | 7,638          |         |      |   | 7,310    |         |  |  | 4.5  |     
|                                 | Stationery and supplies                                                      |                           |   | 5,188          |         |      |   | 5,230    |         |  |  | (.8  | )   
|                                 | Advertising and promotion                                                    |                           |   | 4,400          |         |      |   | 3,993    |         |  |  | 10.2 |     
|                                 | Other                                                                        |                           |   | 21,406         |         |      |   | 18,757   |         |  |  | 14.1 |     
|                                 |                                                                              |                           |   |                |         |      |   |          |         |  |  |     
|                                 |                                                                              | Total noninterest expense |   | $              | 148,684 |      |   | $        | 131,479 |  |  |      | 13.1 | %
|                                 |                                                                              |                           |   |                |         |      |   |          |         |  |  |     
|Nine months ended September 30,  |                                                                              |                           |   |                |         |      |   |          |         |  |  |     
|                                 | Salaries and wages                                                           |                           | $ | 153,050        |         |      | $ | 137,209  |         |  |  | 11.5 | %   
|                                 | Employee benefits                                                            |                           |   | 54,903         |         |      |   | 41,320   |         |  |  | 32.9 |     
|                                 | Occupancy expense                                                            |                           |   | 49,917         |         |      |   | 46,752   |         |  |  | 6.8  |     
|                                 | Outside services                                                             |                           |   | 35,380         |         |      |   | 35,131   |         |  |  | .7   |     
|                                 | Intangible amortization                                                      |                           |   | 32,549         |         |      |   | 27,443   |         |  |  | 18.6 |     
|                                 | Equipment expense                                                            |                           |   | 22,728         |         |      |   | 21,654   |         |  |  | 5.0  |     
|                                 | Stationery and supplies                                                      |                           |   | 14,881         |         |      |   | 15,009   |         |  |  | (.9  | )   
|                                 | Advertising and promotion                                                    |                           |   | 12,690         |         |      |   | 12,397   |         |  |  | 2.4  |     
|                                 | Restructuring,
          integration and 
          other nonrecurring costs |                           |   | 3,935          |         |      |   |         |         |  |  | N/M  |     
|                                 | Other                                                                        |                           |   | 66,455         |         |      |   | 61,584   |         |  |  | 7.9  |     
|                                 |                                                                              |                           |   |                |         |      |   |          |         |  |  |     
|                                 |                                                                              | Total noninterest expense |   | $              | 446,488 |      |   | $        | 398,499 |  |  |      | 12.0 | %
|                                 |                                                                              |                           |   |                |         |      |   |          |         |  |  |     
|                                 | N/M  Not Meaningful                                                         |                           |   |                |         |      |   |          |         |  |  |      |     

As the table above shows in more detail, noninterest expense increased by 13.1%
and 12.0% for the three and nine months ended September 30, 2001, respectively,
compared to the same periods in 2000. Factors causing the increase include the
following:



| |  | The increases in salaries and wages were primarily due to increased
staffing as a result of the Nevada and New Mexico branch acquisitions
in the first quarter of 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                     
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| 
| |  | The increases in employee benefits were primarily due to: (1) higher
employee benefits due to increased staffing as a result of the Nevada
and New Mexico branch acquisitions and (2) higher incentive benefits.
Also, the change from the prior years was greater due to lower net
periodic pension benefit credits in 2001.                                                                                                                                                                                                                                                                               
| 
| |  | The increases in intangible amortization were due to the Nevada and
New Mexico branch acquisitions. We recorded an additional $113
million in goodwill and core deposit intangibles at acquisition.                                                                                                                                                                                                                                                                                                                                                                                                         
| 
| |  | Restructuring, integration and other nonrecurring costs related to the
30 branches acquired in Nevada and New Mexico in the first quarter of
2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| 
| |  | For the nine months ended September 30, 2001, the increase in other
noninterest expense, as compared to the same period in 2000, was
primarily due to a $5 million charitable contribution made to the
First Hawaiian Foundation, a charitable arm of First Hawaiian that
supports nonprofit and community organizations in the markets where it
operates. The amount of the increase was partially offset by $3
million in expenses recognized in 2000 related to the planned
acquisition of divested branches resulting from the terminated merger
of Zions Bancorporation and First Security Corporation.

27



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##### Table of Contents



INCOME TAXES

The Companys effective income tax rates (exclusive of the tax equivalent
adjustment) for the three and nine months ended September 30, 2001 were 41.0%
and 39.9%, as compared to 41.5% and 41.8%, respectively, for the same periods
in 2000. The decrease in the effective income tax rate was primarily due to the
benefit of the donation to First Hawaiian Foundation of Concord stock, certain
benefits related to restricted stock and settlement of state tax audits.

ACCOUNTING DEVELOPMENTS

We have a substantial amount of intangible assets, mainly goodwill and core
deposit intangibles, that stem primarily from the BancWest Merger and the
Nevada and New Mexico branch acquisitions. The amortization of these
intangible assets has a significant effect on our net income and earnings per
share, among other items, as measured under current generally accepted
accounting principles. FASB has recently issued two pronouncements: SFAS No.
141, Business Combinations and SFAS No. 142, Goodwill and Other Intangible
Assets. See Note 2 to the Consolidated Financial Statements on page 7 for
further information.

In summary, SFAS No. 141 and SFAS No. 142 will end the amortization of goodwill
and instead require review of the goodwills carrying value for impairment. The
provisions of SFAS No.142 are effective as of January 1, 2002. The adoption of
SFAS No.142 would have a significant effect on our earnings and related
profitability ratios. Had the provisions of SFAS No. 142 been adopted for the
first nine months of 2001, our net income would increase by approximately $21
million due to the after-tax effect of the cessation of the amortization of
goodwill.

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 which 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, securities purchased under
agreements to resell and investment securities. Such assets represented 17.3%
of total assets at September 30, 2001 compared to 17.6% at December 31, 2000.

Intermediate- and longer-term asset liquidity is primarily provided by
regularly scheduled maturities and cashflows 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 nine months ended September 30, 2001 increased
7.7% to $14.4 billion, over the year ended December 31, 2000, primarily due to
continued expansion of our customer base in the Western United States and a
rebound in the economy of Hawaii. Average total deposits funded 75% of average
total assets for the nine months ended September 30, 2001 and 76% for the year
ended December 31, 2000.

We also obtain short-term liquidity from ready access to regional and national
wholesale funding sources, including issuing our own commercial paper,
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. Additional information on short-term borrowings
is provided in Note 10 to the Consolidated Financial Statements on pages 55 and
56 of our 2000 Annual Report on Form 10-K. 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.

28



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##### Table of Contents



CAPITAL

Stockholders equity was $2.140 billion at September 30, 2001, an increase of
7.6% over $1.989 billion at December 31, 2000. Compared to September 30, 2000,
stockholders equity at September 30, 2001 increased by $193.4 million, or
9.9%. The increase was primarily due to net income for the respective periods,
less dividends paid.

Capital adequacy regulations require the Company to maintain minimum amounts of
Tier 1 and Total Capital and minimum ratios of Tier 1 Capital and Total Capital
to risk-weighted assets, respectively, and of Tier 1 Capital to average assets
(leverage). These amounts and ratios as of September 30, 2001 are set forth
below:

|                              |                      |  |        |           |                   |  |        |       |       |  |             |           |  |  |  |      |  
|----------------------------- | -------------------- |  | ------ | --------- | ----------------- |  | ------ | ----- | ----- |  | ----------- | --------- |  |  |  | ---- | -
|                              |                      |  |        |           |                   |  |        |       |       |  | For Capital
|                              |                      |  | Actual |           | Adequacy Purposes
|                              |                      |  |        |           |                  
|                              |                      |  | Amount |           | Ratio             |  | Amount |       | Ratio
|                              |                      |  |        |           |                   |  |        |       |      
|(dollar amounts in thousands)
|Tier 1 Capital to             |                      |  |        |           |                   |  |        |       |       |  |             |           |  |  |  |     
|                              | Risk-Weighted
Assets |  | $      | 1,637,783 |                   |  |        | 9.44  | %     |  | $           | 693,837   |  |  |  | 4.00 | %
|Total Capital to              |                      |  |        |           |                   |  |        |       |       |  |             |           |  |  |  |     
|                              | Risk-Weighted
Assets |  | $      | 1,966,500 |                   |  |        | 11.34 | %     |  | $           | 1,387,764 |  |  |  | 8.00 | %
|Tier 1 Capital to             |                      |  |        |           |                   |  |        |       |       |  |             |           |  |  |  |     
|                              | Average Assets       |  | $      | 1,637,783 |                   |  |        | 8.72  | %     |  | $           | 751,251   |  |  |  | 4.00 | %

As of September 30, 2001, the Companys depository institution subsidiaries
were categorized as well-capitalized under the applicable federal regulations
regarding the regulatory framework for prompt corrective action. To be
categorized as well-capitalized, a bank must have a Tier 1 risk-based capital
ratio of 6.00% or greater, a total risk-based capital ratio of 10.00% or
greater, a leverage ratio of 5.00% or greater and not be subject to any
agreement, order or directive to meet a specific capital level for any capital
measure.




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 its 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. Other than loans and leases that are originated and held
for sale and commitments to purchase and sell foreign currencies and
mortgage-backed securities, the Companys interest rate derivatives and other
financial instruments are not entered into for trading purposes.

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##### Table of Contents



INTEREST RATE RISK MEASUREMENT AND MANAGEMENT, Continued

The Company models its net interest income in order to quantify its 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 and down of
100 and 200 basis points each. Each account-level item is repriced according
to its respective contractual characteristics, including any imbedded options
which might exist (e.g. periodic interest rate caps or floors or loans and
leases which permit the borrower to prepay the principal balance of the loan or
lease prior to maturity without penalty). Off-balance-sheet 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 100 and 200 basis-point increases and decreases in
interest rates on the Companys consolidated net interest income over the 12
months beginning October 1 and January 1, 2001 is shown below:

|                     |  |                       |       |     |  |      |       |     |  |     |       |   |  |   |       |    |  |   |       |   
|-------------------- |  | --------------------- | ----- | --- |  | ---- | ----- | --- |  | --- | ----- | - |  | - | ----- | -- |  | - | ----- | --
|                     |  | +2%                   |       | +1% |  | Flat |       | -1% |  | -2%
|                     |  |                       |       |     |  |      |       |     |  |    
|                     |  | (dollars in millions)
|October 1, 2001      |  |                       |       |     |  |      |       |     |  |     |       |   |  |   |       |    |  |   |       |   
|Net Interest Income  |  | $                     | 900.7 |     |  | $    | 898.7 |     |  | $   | 894.2 |   |  | $ | 884.4 |    |  | $ | 863.8 |   
|Difference from flat |  | $                     | 6.5   |     |  | $    | 4.4   |     |  | $   |      |   |  | $ | (9.8  | )  |  | $ | (30.4 | ) 
|% variance           |  |                       | .7    | %   |  |      | .5    | %   |  |     |      | % |  |   | (1.1  | )% |  |   | (3.4  | )%
|January 1, 2001      |  |                       |       |     |  |      |       |     |  |     |       |   |  |   |       |    |  |   |       |   
|Net Interest Income  |  | $                     | 816.9 |     |  | $    | 829.2 |     |  | $   | 825.2 |   |  | $ | 811.0 |    |  | $ | 793.6 |   
|Difference from flat |  | $                     | (8.3  | )   |  | $    | 4.0   |     |  | $   |      |   |  | $ | (14.2 | )  |  | $ | (31.6 | ) 
|% variance           |  |                       | (1.0  | )%  |  |      | .5    | %   |  |     |      | % |  |   | (1.7  | )% |  |   | (3.8  | )%

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 significant net interest income changes for each interest rate scenario
presented above include assumptions based on accelerating or decelerating
mortgage 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 are based upon analyses of
customers 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 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






PART II. OTHER INFORMATION




Item 4. Submission of Matters to a Vote of Security Holders

On September 20,
2001, BancWest held a special meeting of its stockholders to
consider and vote upon the adoption of the Agreement and Plan of Merger, dated
as of May 8, 2001, as Amended and Restated as of July 19, 2001, by and amongst
BancWest, BNP Paribas and Chauchat L.L.C., pursuant to which, among other
things: (1) a wholly-owned subsidiary of BNP Paribas will merge into BancWest
with BancWest continuing as the surviving corporation (the Merger); (2)
BancWest will cease to be an independent, publicly traded company and will
become a wholly-owned subsidiary of BNP Paribas; (3) holders of BancWest
common stock will be entitled to receive $35 in cash, without interest, for
each share of common stock that they own; and (4) holders of Class A common
stock will retain their shares as Class A common stock of the surviving
corporation, in each case as more fully described in BancWests proxy statement
for the special meeting. The following are the numbers and percentage of
outstanding shares voted on the proposal to adopt the merger agreement: for -
107,018,650 (85.74%), against  636,222 (.51%) and abstained  138,842 (.11%).




Item 6. Exhibits and Reports on Form 8-K

Exhibits

|              |  |                                                                                                                                                                                                                                                                             
|------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit 10.27 |  | Resolutions of the Board of Directors adopted
September 20, 2001 amending the Companys Defined
Contribution Plan, Future Plan and Incentive Plan for
Key Executives, and terminating its option plans,
effective upon closing of the Companys merger with
Chauchat L.L.C.*
|             
|Exhibit 12    |  | Statement regarding computation of ratios.                                                                                                                                                                                                                                  

|                        |  |                                                                                                                                                                                                                                          
|----------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) Reports on Form 8-K |  | Report on Form 8-K
        filed July 17, 2001 reporting under Item 9 the issuance of Supplemental
        Quarterly Financial Data concerning first quarter earnings.                                                                   
|                        |  | Report on Form 8-K
        filed July 20, 2001 reporting under Item 5 the amendment and
        restatement as of July 19, 2001 of the definitive Agreement and Plan
        of Merger among the Company, BNP Paribas and Chauchat L.L.C.



---

|* |  | Management contract or compensatory plan or arrangement.
|- |  | --------------------------------------------------------

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##### Table of Contents






SIGNATURES

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 13, 2001 |  |  | By                                                   | /s/ Howard H. Karr                                                                                                    
|     |  |                   |  |  |                                                      | Howard H. Karr 
          Executive Vice President and Chief Financial Officer
          (principal financial officer)

32



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EXHIBIT INDEX

|        |  |                                                                                                                                                                                                                                                                             
|------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |  |                                                                                                                                                                                                                                                                             
|Number  |  | Description                                                                                                                                                                                                                                                                 
|        |  |                                                                                                                                                                                                                                                                             
|10.27   |  | Resolutions of the Board of Directors adopted September 20, 2001
amending the Companys Defined Contribution Plan, Future Plan and
Incentive Plan for Key Executives, and terminating its option plans,
effective upon closing of the Companys merger with Chauchat L.L.C.*
|       
|12      |  | Statement regarding computation of ratios.                                                                                                                                                                                                                                  



---

|* |  | Management contract or compensatory plan or arrangement.
|- |  | --------------------------------------------------------